Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Agenda Packet City Council - 01/20/2015
Corpus Christi Meeting Agenda - Final City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, January 20, 2015 11:30 AM 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 12:00 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 Nelda Martinez to call the meeting to order. B. Invocation to be given by Pastor Felix Zavala, El Shaddai Church. C. Pledge of Allegiance to the Flag of the United States to be led by Andy Leal Jr., Interim Director of Street Services. D. City Secretary Rebecca Huerta to call the roll of the required Charter Officers. E. Proclamations / Commendations 1. 15-0051 Proclamation declaring January as, "Dynamic Dollar Month to Fight Human Trafficking". F. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. 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 1 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 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. G. CITY MANAGER'S COMMENTS / UPDATE ON CITY OPERATIONS: a. BRIEFINGS : (ITEMS 2 - 4) Briefing information will be provided to the City Council during the Council meeting. Briefings are for Council information only. Council may give direction to the City Manager, but no other action will be taken and no public comment will be solicited. 2. 15-0020 Chaparral Street Improvement Project Update 3. 15-0052 Capital Programs Department Organizational Assessment 4. 15-0021 Bond Street Program Update b. OTHER H. EXECUTIVE SESSION: (ITEM 5) 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 officer. 5. 15-0045 Executive session pursuant to Section 551.071 of the Texas Government Code for consultation with attorneys regarding fire collective bargaining negotiations and the Agreement between the City of Corpus Christi and the Corpus Christi Firefighters Association and term(s) thereof with possible discussion, resolution(s), and other actions in open session concerning any matters related thereto. I. MINUTES: Corpus Christi Page 2 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 6. 15-0048 Special Meeting of January 13, 2015 Attachments: Minutes - January 13, 2015 Special Mtq J. BOARD & COMMITTEE APPOINTMENTS: 7. 15-0050 Animal Control Advisory Board Building Standards Board Library Board Parking Advisory Committee Parks and Recreation Advisory Committee Port of Corpus Christi Authority of Nueces County, Texas Sister City Committee Transportation Advisory Committee Tree Advisory Committee Attachments: January 20, 2015 - Board Appointments K. 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. L. CONSENT AGENDA: (ITEMS 8 - 28) 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. 8. 14-001247 Purchase of Centracs Automated Transportation Management System Motion approving the purchase of one (1) Centracs Automated Transportation Management System from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $241,000.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. Attachments: Agenda Memo - Centracs ATMS.pdf Price Sheet - Centracs ATMS.pdf 9. 14-001249 Purchase of 152 Econolite Cobalt Controllers 2100 to replace Corpus Christi Page 3 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 incompatible controllers for traffic signal system Motion approving the purchase of 152, Econolite Cobalt Controller 2100 from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $448,400.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. Attachments: Agenda Memo - Purchase of Econolite Cobalt Controller 2100.pdf Price Sheet- Purchase of Econolite Cobalt Controller 2100.pdf 10. 14-001246 Purchase of eighteen (18) Traffic Signal Cabinets Motion approving the purchase of eighteen (18) National Electrical Manufacturers Association (NEMA) TS2-1 Traffic Signal Cabinets from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $148,032.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. Attachments: Agenda Memo - Traffic Signal Cabinets.pdf Price Sheet - Traffic Signal Cabinets.pdf 11. 14-001397 Purchase of six (6) Radar Vehicle Detection Systems Motion approving the purchase of six (6) radar vehicle detection systems from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $98,280.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. Attachments: Agenda Memo - Radar Detection Systems.pdf Price Sheet - Radar Detection Systems.pdf 12. 14-001259 Service Agreement for Herbicide Application Motion approving a service agreement with DeAngelo Brothers, LLC, Katy, Texas for herbicide application in accordance with Bid Invitation No. BI -0300-14, based on only bid for an estimated annual expenditure of $82,462.89, of which $68,719.07 is required for the remainder of FY 2014-2015. The term of the contract will be for twelve (12) months with options to extend for up to two (2) additional twelve-month periods, subject to the approval of the Contractor and the City Manager or designee. Funds have been budgeted by the Street Operations Department in FY 2014-2015. Attachments: Agenda Memo - Herbicide Application Service.pdf Service Agreement - Herbicide Application Service.pdf Bid Tabulation - Herbicide Application Service.pdf 13. 14-001419 Supply Agreements for Food Items Corpus Christi Page 4 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 Motion approving supply agreements with the following companies in the following amounts in accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-15-1 for food items, for an estimated six-month expenditure of $193,802.43. The terms of the contracts shall be for six months. Funds are available through the Meals on Wheels Grant. LaBatt Food Service Corpus Christi, Texas 154 Line Items $78,687.09 Grand Total: $193,802.43 Attachments: Agenda Memo - Food Items.pdf Award Summary - Food Items.pdf Performance Food Group Victoria, Texas 127 Line Items $115,115.34 14. 14-001425 Engineering construction contract for FM 2444 Waterline Adjustments Task Order No. 5 and 6 Motion authorizing the City Manager, or designee, to execute a construction contract with Bay, Ltd of Corpus Christi, Texas in the amount of $783,023 for the TXDOT Participation Projects - Task Order Nos. 5 and 6 - FM 2444 Waterline Adjustments for the total base bid. Attachments: Agenda Memo - Task Order 5 and 6 FM 2444 Waterline Adjust.pdf Protect Budget - Task Order 5 and 6 FM 2444 Waterline Adjust.pdf Location Map - Task Order 5 and 6 FM 2444 Waterline Adjust.pdf Presentation - Task order 5 and 6 FM 2444 Waterline Adjustments 15. 14-001426 Engineering Construction Contract for FM 2444 Waterline Adjustments Task Order No. 7 Motion authorizing the City Manager, or designee, to execute a construction contract with National Power Rodding Corporation of Austin, Texas in the amount of $70,306 for the TXDOT Participation Projects - Task Order No. 7 - FM 2444 Waterline Adjustments for the total base bid. Attachments: Agenda Memo - Task Order 7 FM 2444 48inch Waterline.pdf Project Budget - Task Order 7 FM 2444 48inch Waterline.pdf Location Map - Task Order 7 FM 2444 48inch Waterline.pdf Presentation - Task Order 7 FM 2444 48inch Waterline.pdf 16. 14-001443 Amending Type A Board Affordable Housing Goals and Strategies Motion to approve Type A Board Affordable Housing Goals and Strategies. Corpus Christi Page 5 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 Attachments: Agenda Memo - Type A Goals and Strategies Goals and Strategies - Type A Affordable Housing changes 17. 14-001339 Nominating Flint Hills Resources, LP as a Triple Jumbo Texas Enterprise Zone Project Resolution nominating Flint Hills Resources Corpus Christi, LLC ("Flint Hills") to the Office of the Governor Economic Development & Tourism ("EDT") through the Economic Development Bank ("Bank") as a Triple Jumbo Enterprise Project pursuant to the Texas Enterprise Zone Act ("Act"). Attachments: Agenda Memo - Flint Hills TEZ 2015 Resolution - Flint Hills TEZ 2015 Approved TEZ Ordinance 2014 18. 14-001430 Approving the City's Investment Policy and Investment Strategies Resolution reaffirming the City of Corpus Christi's Investment Policy and Investment Strategies for Fiscal Year 2014-2015 Attachments: Agenda Memo Investment Policy January 20, 2015.pdf Resolution - Reaffirming Policy 2014 vFinal3 2015 Investment Policy - January 20 2015 Final 2015 Investment Policy - Red -line January 20 2015 Final 19. 14-001358 Resolution in support of the proposed revitalization of the Corpus Christi Housing Authority - La Armada II Public Housing Complex Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed revitalization of the La Armada II Public Housing Complex. Attachments: Agenda Memo - CCHA Resolution Resolution - CCHA Presentation - La Armada II Revitalization 20. 14-001423 Second Reading Ordinance - Amending the Unified Development Code (UDC) to enhance enforcement of bar, taverns, or pub zoning (1st Reading 1/13/15) Ordinance amending the Unified Development Code by revising subsections 5.2.7 to enhance enforcement of bar, taverns, or pub zoning; amending the Unified Development Code by revising subsections 5.1.4.F to correct an error in the text for restaurant accessory use; and providing for severance, penalty, publication, and effective date. Corpus Christi Page 6 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 Attachments: Agenda Memo - UDC Txt Amdmts Ordinance - UDC Txt Amdmts 21. 14-001427 Second Reading Ordinance - Rezoning from Manufactured Home and Industrial to Industrial with a Special Permit at 7585 Leopard Street (1st Reading 1/13/15) Case No. 1214-02 Isaias Franco: A change of zoning from "RMH" Manufactured Home District and "IL" Light Industrial District to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction, not resulting in a change to the Future Land Use Plan. The property is described as being a 15.854 -acre tract of land out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018 and a 20.00 -acre tract of land out of a 202.16 -acre tract out of Section 8, Range V, of the H.P.L. Kinney Sectionalized Lands, located on the south side of Leopard Street between Rhew Road and Cathead Road Planning Commission and Staff Recommendation (December 17, 2014): Approval of the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction subject to conditions. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Isaias Franco ("Owner"), by changing the UDC Zoning Map in reference to a 15.854 -acre tract of land out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018 and a 20.00 -acre tract of land out of a 202.16 -acre tract out of Section 8, Range V, of the H.P.L. Kinney Sectionalized Lands, from the "RMH" Manufactured Home District and "IL" Light Industrial District to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. Attachments: Agenda Memo - Isaias Franco Ordinance Special Permit - Isais Franco Presentation - Isaias Franco Zoning Report - Isaias Franco 22. 14-001429 Second Reading Ordinance - Rezoning from Residential to Commercial at 5921 Yorktown Boulevard (1st Reading 1/13/15) Case No. 1214-01 Maxwell P. Dunne Funeral Service, Inc.: A change of zoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District, resulting in a change to the Future Land Use Plan from residential to commercial uses. The property is described as being a 2.13 acre tract of land out of Lot 20, Section 10, Flour Bluff and Encinal Farm and Garden Tracts, located on the Corpus Christi Page 7 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 southwest corner of Yorktown Boulevard and Loire Boulevard. Planning Commission and Staff Recommendation (December 3, 2014): Approval of the change of zoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Maxwell P. Dunne Funeral Services, Inc. ("Owner"), by changing the UDC Zoning Map in reference to a 2.13 acre tract of land out of Lot 20, Section 10, Flour Bluff and Encinal Farm and Garden Tracts, from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. Attachments: Agenda Memo - Maxwell P. Dunne Funeral Service, Inc. Ordinance - Maxwell P. Dunne Funeral Service, Inc. Presentation - Maxwell P. Dunne Funeral Svc. Inc. Zoning Report - Maxwell P. Dunne Funeral Svc., Inc 23. 14-001388 Second Reading Ordinance - Amending City Code to modify auto wrecker ordinance (1st Reading 1/13/15) Ordinance amending Chapter 57, Article V "AUTOWRECKERS" of the Corpus Christi Code by modifying permitting, regulatory, and enforcement procedures of auto wreckers, increasing fees for substitution of vehicle, and increasing wrecker service fees; Providing an effective date; Providing for severance; Providing for penalty; and Providing for publication. Attachments: Agenda Memo - Wrecker Ordinance 01.13.2015 Ordinance - Wrecker Amendments - 2015 24. 14-001398 Second Reading Ordinance - Accepting and appropriating grant funds for the Internet Crimes Against Children (ICAC) task force program (1st Reading 1/13/15) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Office of Juvenile Justice and Delinquency Prevention Internet Crimes Against Children (ICAC) Task Force program, in the amount of $19,800 to purchase equipment, supplies, and training travel for the ICAC program within the Police Department; and appropriating the $19,800 in the No. 1061 Police Grants Fund. Attachments: Agenda memo - ICAC grant approp 01.13.2015 Ordinance - ICAC grant 2015 Corpus Christi Page 8 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 25. 14-001389 Second Reading Ordinance - Amending City Code to modify Animal Care Ordinance (1st Reading 1/13/15) Ordinance amending Chapter 2 and Chapter 6 of the Corpus Christi Code to reassign Animal Care Services roles and responsibilities; to designate the Animal Care Services Manager as the Local Rabies Control Authority; to establish a fee schedule; authorizing waiver of fees; providing Animal Control Service Manager authority to prohibit dangerous dogs within the City; eliminating $25 refund for sterilization of adopted animals; prohibiting traps with holding mechanisms; to modify the name of Animal Control Advisory Committee; to modify the ex officio members; to designate the Animal Care Advisory Committee as the Animal Shelter Committee; Providing for severance; Providing for publication; Providing for penalty; and Providing an effective date. Attachments: Agenda Memo - Animal Care Ordinance 01.13.2015 Ordinance - Creating Fee schedule 2015 26. 14-001373 Second Reading Ordinance - Purchase of electronic plan review solution from Bentley Systems, Inc. (1st Reading 1/13/14) Ordinance appropriating $236,104 from the Unreserved Fund Balance in the Development Services Fund No. 4670 for the purchase of Bentley electronic plan review software; changing the FY 2014-2015 Budget adopted by Ordinance No. 030294 to increase expenditures by $236,104; authorizing the City Manager, or designee, to execute contract with Bentley for electronic plan software, with the total amount of the fixed price agreement of $286,104; authorizing the City Manager, or designee, to execute amendment to Master Contract with Bentley Systems, Inc. for implementation of an electronic plan review solution. Attachments: Agenda Memo - Bentley Systems Inc. Ordinance - Bentley Contract - Bentley Systems Inc. Proposal - Bentley Systems Inc. 27. 14-001422 Second Reading Ordinance - Closing a portion of a utility easement located west of the Ayers Street public right-of-way, and north of the Saratoga Boulevard (SH 357) right-of-way (1st Reading 1/13/15) Ordinance abandoning and vacating an 8,598 -square foot portion of an existing 10 -foot wide utility easement out of a part of Lots 1 & 2, Cabaniss Acres No. 2, located west of the Ayers Street public right-of-way, and north of the Saratoga Boulevard (SH 357) right-of-way; and requiring the owners, Ernesto & Vienna Flores, to comply with the specified conditions. Corpus Christi Page 9 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 Attachments: Agenda Memo - A&V, Lots 1 & 2 Cabaniss Acres No. 2 Ordinance - A&V, Lots 1 & 2 Cabaniss Acres No. 2 Presentation - right of way closure 28. 14-001324 Second Reading Ordinance - Type A Grant for CC Cold Storage, LLC and South Texas Cold Storage, LLC facility located at 260 McBride Lane (1st Reading 1/13/15) Ordinance approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and CC Cold Storage, LLC and South Texas Cold Storage, LLC ("Cold Storage") to provide a grant of up to $265,000, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Cold Storage Business Incentive Agreement for the creation of jobs; and appropriating $265,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund for said business incentive grant from the Type A Corporation to Cold Storage; and changing the FY 2014-2015 operating budget, adopted by Ordinance No. 030294, by increasing expenditures by $265,000. Attachments: Agenda Memo - Cold Storage Ordinance - Cold Storage Agreement - CC Cold Storage Protect Service Agreement - CC Cold Storage M. PUBLIC HEARINGS: (NONE) N. REGULAR AGENDA: (ITEM 29) The following items are motions, resolutions and ordinances that will be considered and voted on individually. 29. 14-001420 Second Reading Ordinance - Appropriating funds into the Crime Control District Fund (1st Reading 1/13/15) Ordinance appropriating $1,323,658.59 from the unreserved fund balance in No. 9010 Crime Control District Fund for "one-time" expenditures in the FY 2014-2015 operating budget, and changing the FY 2014-2015 operating budget adopted by Ordinance No. 030294 by increasing expenditures by $1,323,658.59. Attachments: Agenda Memo - Crime Control Ordinance - Crime Control One time Expenditure 2015 O. FIRST READING ORDINANCES: (ITEMS 30 - 31) 30. 14-00984 First Reading Ordinance - Accepting and appropriating funds for Corpus Christi Page 10 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 the Elderly Nutrition Program Ordinance authorizing the City Manager or designee to execute all documents necessary to accept and appropriate a $631,131 grant from the Area Agency on Aging of the Coastal Bend in the No. 1067 Parks and Recreation grants fund for the FY 2015 Senior Community Services, Elderly Nutrition Program. Attachments: Agenda Memo - ENP FY15 Grant Planning Amount Notification Ordinance - ENP FY15 Grant Planning Amount Notification NOFA ENP FY 15 Grant Planning amount 31. 15-0046 First Reading Ordinance Designating Cheniere Reinvestment Zone Ordinance designating the Cheniere Reinvestment Zone within the City limits under the Property Redevelopment and Tax Abatement Act (the "Act"), (Chapter 312 of the Texas Tax Code) Attachments: Agenda Memo - Cheniere Reinvestment Zone Ordinance - Reinvestment Zone Attachment A - Metes Bounds - Marine Facility COF - Cheniere Reinvestment Zone P. FUTURE AGENDA ITEMS: (ITEMS 32 - 36) The following items are for Council's informational purposes only. No action will be taken and no public comment will be solicited. 32. 15-0044 Chapter 380 Agreement for Corpus Christi Liquefaction, LLC (Cheneire) Resolution authorizing the City Manager or designee to execute a Chapter 380 Economic Development Incentive Agreement with Corpus Christi Liquefaction, LLC ("Agreement") for certain economic development grants for development of a liquid natural gas facility within the City's extraterritorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits for the benefit of the City. Attachments: Agenda Memo - Cheniere 380 Agreement Resolution - Cheniere Cheniere Chapter 380 Agreement COF - Cheniere 33. 15-0049 Agreement for temporary tax abatement for Corpus Christi Liquefaction, LLC Resolution authorizing the execution of an agreement with Corpus Christi Liquefaction, LLC providing for temporary property tax abatement Corpus Christi Page 11 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 Attachments: Agenda Memo - Cheniere 312 Tax Abatement Resolution - Cheniere Tax Abatement Agreement - Cheniere Tax Abatement COF - Cheniere 312 34. 14-001390 Lease Expansion Amendment for the City Detention Center at 615 Leopard, Suite 113A Motion to authorize City Manager, or designee, to execute a Lease Expansion Amendment which applies to the original Lease Agreement dated April 13, 2004, between Landlord, Wilson Plaza Associates LP., and Tenant, The City of Corpus Christi for suite number 113-A, located at 615 Leopard Street. Attachments: Agenda Memo - Lease Expansion CDC Agreement - Lease Expansion 35. 14-00878 Approving a Service Agreement for Rental of one (1) Motor Grader and three (3) Wheel Loaders for Beach Operations Motion approving a service agreement with Doggett Heavy Machinery Services, Corpus Christi, Texas for the rental of one (1) motor grader and three (3) wheel loaders in accordance with Bid Invitation No. BI -0197-14, based on only bid for a total expenditure of $560,709.00, of which $166,136.00 is required for the remainder of FY 2014-2015 The term of the agreement shall be for twenty-seven (27) months. Funds have been budgeted by the Parks and Recreation Department in FY 2014-2015. Attachments: Agenda Memo - Motor Grader & Wheel Loaders Bid Tabulation - Motor Grader & Wheel Loaders.pdf Service Agreement - Motor Grader & Wheel Loaders.pdf 36. 15-0028 Appointing Council Members to Corpus Christi Housing and Finance Corporation and Corpus Christi Industrial Development Corporation Boards Motion appointing Council Members Nelda Martinez, Chad Magill, Lillian Riojas, Mark Scott, Carolyn Vaughn, Brian Rosas, Lucy Rubio, Colleen McIntyre and Rudy Garza, Jr. as Board Members of the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation. Attachments: Agenda Memo - CCHFC & CCIDC Q. FUTURE CORPORATION MEETING: (ITEM 37) 37. 15-0027 Annual Board Meeting of the Corpus Christi Housing Finance Corporation Corpus Christi Page 12 Printed on 1/16/2015 City Council Meeting Agenda - Final January 20, 2015 Annual Board Meeting of the Corpus Christi Housing Finance Corporation Attachments: Agenda Memo for CCHFC Board Meeting 01.27.15 CCHFC Agenda Minutes April 29 2014 CCHFC Treasurers Report Resolution R. LEGISLATIVE UPDATE: This item is for Council's informational purposes only. Council may give direction to the City Manager, but no other action will be taken and no public comment will be solicited. S. ADJOURNMENT Corpus Christi Page 13 Printed on 1/16/2015 Corpus Christi Meeting Minutes City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, January 13, 2015 10:30 AM Council Chambers SPECIAL CITY COUNCIL MEETING Public Notice - - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. A. City Secretary Rebecca Huerta to call the meeting to order. City Secretary Rebecca Huerta called the meeting to order. (Note: Council Member McIntyre arrived at 10:34 a.m.) B. Invocation to be given by Father Peter Martinez, St. Paul the Apostle Church and Father Frank Martinez, Our Lady of Perpetual Help Church. Father Peter Martinez and Father Frank Martinez gave the invocation. C. Outgoing Council Member Speeches and Presentation of Gifts (presented by Mayor -Elect Nelda Martinez) Mayor Martinez referred to outgoing Council Member speeches and presentations. The outgoing council members thanked their families, friends, supporters, constituents, and City staff for their assistance and support during their time of public service. Mayor Martinez and Council Members Garza, Magill, McIntyre, Riojas, and Scott individually spoke regarding the accomplishments and leadership of the outgoing council members during their time in office. Mayor Martinez presented outgoing Council Members Allen, Leal and Loeb with a gift on behalf of the City of Corpus Christi. Mayor Martinez called for a 5 -minute recess before the swearing-in ceremony of the new Mayor and City Council Members. D. Swearing-in Ceremony for New Mayor and City Council Members, to be conducted by The Honorable Janis Graham Jack, Senior U.S. District Judge for the Southern District of Texas. Mayor Martinez referred to Item D, Swearing-in Ceremony for New Mayor and City Council Members. The Honorable Janis Graham Jack, Senior U.S. District Judge for the Southern District of Texas, conducted the swearing-in ceremony of the Mayor and Council Members. E. Incoming Mayor and Council Member Speeches Corpus Christi Page 1 Printed on 1/15/2015 City Council Meeting Minutes January 13, 2015 The Mayor and each Council Member thanked their family, friends, and supporters for their assistance and encouragement during the election process. F. Continue Meeting with a Brief Reception G. Adjournment Mayor Martinez called for a brief recess for a reception held in the foyer area outside the City Council Chambers before the new Council began their first meeting. The meeting was adjourned at 12:40 p.m. Corpus Christi Page 2 Printed on 1/15/2015 a. ANIMAL CONTROL ADVISORY COMMITTEE — One (1) vacancy with term to 5- 31-16. DUTIES: To advise the City Council and City Manager on all aspects of animal control including fees, staffing, ordinances, procedures and policies and facilities. The jurisdiction and actions of the Board shall be advisory only. COMPOSITION: It shall consist of seven (7) members. Terms will be for three years. At least one member shall be a veterinarian. Two members shall be members of local animal welfare organizations (at least one of the organizations must operate an animal shelter). The remaining four members shall represent the community at large. All members shall serve until their successors are appointed and qualified and each shall be a resident of the City. The City Manager, or his representative, the Director of the City - County Health and Welfare Department or his representative and the Animal Control Supervisor shall serve as ex -officio members of the Board without vote. The Board, by majority vote, shall elect its own Chairman who shall preside at all meetings of the Board and a Vice Chairman who shall act as president in the absence of the Chairman. The Director of the City -County Health and Welfare Department or his designated representative shall serve as the secretary of the Board. ORIGINAL MEMBERS TERMS APPTD. DATES Cheryl Martinez (Animal Welfare) 5-31-15 6-12-12 Harold Bennett (Animal Welfare/Shelter) 5-31-17 2-14-12 Dr. Barbara Whitlock (Veterinarian) 5-31-16 8-17-10 Laina Schonefeld (Comm. at Large) 5-31-16 2-14-12 Mark Phillips (Comm. at Large) 5-31-17 5-27-14 ***Janet Strawn (Comm. at Large) 5-31-16 5-14-13 Megan Winn (Comm. at Large) 5-31-15 5-14-13 City Manager or Representative Ex -Officio, Nonvoting Director of City -County Health or Representative Ex -Officio, Nonvoting Animal Control Supervisor Ex -Officio, Nonvoting Legend: *Seeking reappointment **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation INDIVIDUALS EXPRESSING INTEREST Denise Gallimore 3202 Laguna Shores Rd, 78418 Property Manager and Sales Agent, Group One. Community Activities include: Corpus Christi Association of Realtors, and National Association of Residential Property Managers. (12/30/14) Louis Hoelscher 4429 Congressional Dr., 78413 Retired, City of Corpus Christi. President of Catholic Life Insurance Local Branch 35. Member and Past President of Gardens Condo Homeowners Association and Foxfire Condo Homeowners Association. Eucharistic Minister at Most Precious Catholic Church and The Palms Nursing Home. (4/15/14) Megan Tisdale 905 Coral Pl., 78411 Legal Assistant, Judge Robert C. Pate. Activities include: Board member People Assisting Animal Control (P.A.A.C.), Yorkie Haven Rescue member, South Texas Botanical Gardens and Nature Center Corporate Member. Graduated with Liberal Arts Degree from Texas A&M University -Corpus Christi. (12/30/14) b. BUILDING STANDARDS BOARD — One (1) vacancy with term to 3-3-17 representing the following category: At -Large. DUTIES: To hear appeals under the Building Standards and Housing Code, which shall be construed to secure the beneficial interests and purposes of safety, health, and general welfare, through structural strength, stability, sanitation, adequate light and ventilation, and safety to life and property from fire and other hazards incident to the construction, alteration, repair removal, demolition, use and occupancy of building or structure. COMPOSITION: Seven (7) members, three (3) members at large of whom shall be residents of the City and home owners; one shall be a lawyer, three (3) chosen from: realtor, architect, engineer, general contractor, home builder or building materials dealer. Appointed by the City Council for three-year staggered terms. Elects its own chairman. ORIGINAL MEMBERS TERMS APPTD. DATES Marco Crawford (Lawyer) 3-03-17 5-27-14 Shawn P. Bodine (Engineer) 3-03-15 3-27-12 ***Randal Salazar (Member at Large) 3-03-17 2-23-10 Matthew Ezell (General Contractor) 3-03-17 5-27-14 Peggy E. Mettlen (Member at Large) 3-03-15 3-27-12 Clarissa Beltran (Member at Large) 3-03-16 2-23-10 Shane Torno (Engineer) 3-03-16 8-18-09 Legend: *Seeking reappointment **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation INDIVIDUALS EXPRESSING INTEREST Denise Gallimore 3202 Laguna Shores Rd, 78418 Lee R. Hassman 3105 Santa Cruz, 78414 Theunis "Tim" Voorkamp 7614 Loire Blvd, 78414 Property Manager and Sales Agent, Group One. Community Activities include: Corpus Christi Association of Realtors, and National Association of Residential Property Managers. (12/30/14) (Homeowner) (Member at Large) Managing Partner, Tropical Realtor. Custom Home Builder and Commercial Builder. (1/9/15) (Homeowner) (Member at Large) Broker/Managing Partner/Owner, Corpus Christi Excel Properties Inc. /Nueces Tax Relief/TAVCO Construction. Retired Merchant Marine Captain, graduate of the U.S. Merchant Marine Academy. Licensed Real Estate Broker, Licensed Property Tax David Wallace 5309 Williams Dr., 78411 Mike Wanzer 3445 Monterey, 78415 Consultant, and Registered Arbitrator with State of Texas. Activities include: Texas Assn. of Property Tax Professionals, National Association of Realtors, and Texas Real Estate Commission. (7/30/13) (Homeowner) (Member at Large) Real Estate Broker and Owner, Windward Properties. Bachelor of Arts in Photojournalism from Stephen F. Austin University in Nacogdoches, Texas. (1/8/15) (Homeowner) (Member at Large) Owner, Mike Wanzer A/C. Past member and Chairman of Mechanical/Plumbing Advisory Committee. Past President of CBACCA. (7/23/13) (Homeowner) (Member at Large) c. LIBRARY BOARD — Four (4) vacancies with terms to 11-5-16. DUTIES: The committee shall be advisory to the City Council and its duties shall be to investigate and recommend to the Council matters relating to library services. COMPOSITION: Nine (9) members, seven (7) members shall be appointed for two-year terms by the City Council, one (1) member shall be nominated by the La Retama Club, and one (1) shall be nominated by the Friends of the Corpus Christi Public Libraries Board for a term of two -years. Each nominee must be confirmed by a majority of City Council Members. MEMBERS Brian Solarek **Dr. Stuart Elovitz *Natalie Rogen, Friends of C.C. Libraries John B. Keys Julia Stafford Abigail Bair *Diana Broyles, La Retama Club *Evelyn Sue Donahoe Rachel E. Buck TERM 11-05-15 11-05-14 11-05-14 11-05-15 11-05-15 11-05-15 11-05-14 11-05-14 11-05-15 Legend: *Seeking reappointment **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation ORIGINAL APPTD. DATE 11-12-13 2-10-09 2-10-09 12-08-09 11-12-13 9-09-14 6-24-14 12-11-12 9-24-13 ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT NO. OF MTGS. NAME THIS TERM Natalie Rogen (Friends of Library) 11 Diana Broyles (La Retama Club) 4 Evelyn Sue Donahoe 11 NO. PRESENT 10 4 9 OTHER INDIVIDUALS EXPRESSING INTEREST Margareta Fratila 3606 Tripoli Dr., 78415 OF ATTENDANCE LAST TERM YEAR 91% 100% 82% Owner, Margaret's Greenhouse and European Floral Design. Received Master of Science in Horticulture and Agriculture from Horticultural University of Bucharest, Romania, Master of Art Degree from Webster University at St. Louis, Missouri and Certification in Secondary Education from Corpus Christi State University. Activities include: Americans for Prosperity, Texas State Society of Washington, D.C., Society of American Florists, Jessica Hamilton 425 Schatzell St., 78401 Republican Women's Club and Numerous Other Organizations. Recipient of Republican Senatorial Medal of Freedom, 2003. Formerly Served on the Library Board. (11/7/14) Digital City Editor, Corpus Christi Caller -Times. Received a Bachelor of Journalism from University of Texas at Austin. Activities include: Caller -Times Volunteer Initiative, Youth Coach with Boys and Girls Club, and Counselor with Extreme Youth Leadership Camp. (4/10/14) d. PARKING ADVISORY COMMITTEE — One (1) vacancy with term to 7-31-15 representing the following category: Member nominated by the Downtown Management District. DUTIES: To provide advice and recommendations to the police chief, city manager or city council on matters relevant to the administration and enforcement of the Code of Ordinances, Chapter 53 including: On -street and off-street parking, special events, and revitalization projects within the city center; developing parking enhancement projects for the city such as expansion of paid parking zones and parking facilities; parking and signage programs and city center concerns; the location, time and rates for paid parking zones, paid parking facilities owned or controlled by city, parking meters and parking pay stations, and penalties for delinquent violators; expenditure or usage of Parking Improvement Fund; parking improvement; and participate with the county on parking enhancement and city center revitalization matters. COMPOSITION: Eleven (11) voting members and three (3) non-voting advisory members appointed by the City Council comprised of the following: one (1) member nominated by the District Council Member who represents the downtown area; two (2) members nominated by the Downtown Management District; one (1) member nominated by the Corpus Christi Beach Task Force; one (1) member nominated by the Uptown Neighborhood Initiative; two (2) members nominated by the Building Owners and Management Association; one (1) member nominated by the Corpus Christi Convention and Visitor's Bureau; two (2) members who shall represent downtown residential interests — one (1) member to be a resident where paid parking meters are collected and one (1) member to be an owner of residential living property in the City Center* Area; and one (1) member to represent the community at large. The City Manager, Police Chief, Parks and Recreation Director or their designees shall serve as non-voting advisory members. The Parking Control Manager or Supervisor shall serve as liaison to the Committee. Of the eleven members with voting power, the initial terms of six (6) members shall serve a two (2) year term, and five (5) members shall serve a three (3) year term as determined by a drawing to be conducted in the City Secretary's Office. Thereafter, all terms shall be three (3) years with terms expiring on July 31St of the applicable year. The Committee shall elect, from among its voting members at the first meeting, a member to serve as chairperson and a vice -chairperson, and who shall serve for a one-year term. ORIGINAL MEMBERS TERM APPTD.DATE Ginny Price (Downtown Area Council Member Nominee) 7-31-16 5-14-13 Jennifer Perales (DMD Representative) 7-31-15 5-14-13 ***Linda K. Sutton (DMD Representative) 7-31-15 5-14-13 Lynn Frazier (Corpus Christi Beach Task Force) 7-31-16 5-14-13 Darlene K. Gregory (Uptown Neigh. Initiative), Chair 7-31-15 5-14-13 Lawrence W. Virts (Bldg Owners & Mgmt Assn) 7-31-15 5-14-13 Fay Crider (Residential; Parking Meters Collected) 7-31-16 5-14-13 Richard Durham (Community at Large), Vice -Chair 7-31-15 5-14-13 Jim Swan (Building Owners & Mgmt. Assoc. Rep.) 7-31-16 11-12-13 Vacant (Residential, Prop Owner in City Center*) 7-31-15 Vacant (Convention & Visitors Bureau Rep.) 7-31-16 City Manager or designee; non-voting member Police Chief or designee; non-voting member Parks and Recreation Dir. or designee; non-voting member Legend: *Seeking reappointment * *Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation (The Corpus Christi Downtown Management District (DMD) is recommending the new appointment of Terry Sweeney.) e. PARKS AND RECREATION ADVISORY COMMITTEE — One (1) vacancy with term to 8-23-15. DUTIES: To provide advice on City parks and buildings therein, public outdoor recreation areas and centers and other grounds under its purview by the City Manager. COMPOSITION: Eleven (11) members appointed by the City Council, who are residents of the City and serve without compensation for a two-year term beginning August 23, or until their successor is appointed. The Board elects its Chairman. ORIGINAL MEMBERS TERM APPTD. DATE Dr. Jinsun Ki 8-23-15 3-11-08 Chris Anderson 8-23-16 8-12-14 Lisa Ann Torres, Chair 8-23-15 6-17-08 Carlos Haney, Vice -Chair 8-23-15 2-24-09 Huxley Smith 8-23-16 5-26-09 ***Rita Sonia Herrera-Padron 8-23-15 5-26-09 Dotson G. Lewis, Jr. 8-23-16 8-12-14 Jerry Plemons 8-23-16 8-12-14 Carlos H. Valdez, Sr. 8-23-16 8-14-12 Curtis Ford 8-23-15 8-20-13 Alexis Hunter 8-23-15 8-20-13 Legend: *Seeking reappointment **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation INDIVIDUALS EXPRESSING INTEREST Sonia Castillo 7313 Pepper Ridge Rd., 78413 Margareta Fratila 3606 Tripoli Dr., 78415 Coordinator, 3rd Coast Research Assoc., Received a Bachelor of Arts in Natural Science and a Master of Science in Environmental Science. Community Activity includes: Community Outreach Regarding Clinical Research Awareness. (8/18/14) Owner, Margaret's Greenhouse and European Floral Design. Received Master of Science in Horticulture and Agriculture from Horticultural University of Bucharest, Romania, Master of Art Degree from Webster University at St. Louis, Missouri and Certification in Secondary Education from Corpus Christi State University. Activities include: Americans for Prosperity, Texas State Society of Gary McCoig 14253 Playa Del Rey, 78418 Ricardo Pedraza 317 Peoples St. #207, 78401 Washington, D.C., Society of American Florists, Republican Women's Club and Numerous Other Organizations. Recipient of Republican Senatorial Medal of Freedom, 2003. Formerly Served on the Library Board. (11/7/14) Environmental Biologist, HDR Engineering, Inc. Received a BS in Biology, and an MS in Wildlife Biology. Activities include: member of the Surfriders — Coastal Bend Chapter. (7/25/13) Project Engineer, HDR Engineering. Received BS and MS in Civil Engineering from Texas A&M University -Kingsville, Texas. Licensed Professional Engineer. Community Activities include: Rotarian and Knights of Columbus. Graduate of Leadership Corpus Christi Class 43. (8/18/14) f. PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX — One (1) vacancy with term to 1-1-18. DUTIES: Those set in Article XVI, Section 59 of the Texas Constitution. COMPOSITION: Seven (7) members appointed as follows: three (3) City Council, three (3) Nueces County Commissioners Court and one (1) San Patricio County for staggered terms. Each person who is appointed or elected commissioner shall be a resident of the proposed navigation district and shall be an elector of the county. A person must have been a resident of Nueces County for at least six months to be eligible for appointment to the port commission. Members serve three-year terms. ORIGINAL MEMBERS TERM APPTD. DATE Richard R. Valls, Jr. (City) 1-01-16 12-10-13 *Alfred "Al" Jones (City) 1-01-15 10-11-11 Richard L. Bowers (County) 1-01-18 12-03-14 Charles Zahn (County), Secretary 1-01-18 01-11-12 Barbara Canales (County) 1-01-17 06-21-13 David P. Engel (City) 1-01-17 12-10-13 Judy Hawley (San Patricio), Chair 1-01-16 01-01-04 Legend: *Seeking reappointment * *Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation ATTENDANCE RECORD OF MEMBER SEEKING REAPPOINTMENT NAME Alfred "Al" Jones (City) NO. OF MTGS. NO. % OF ATTENDANCE THIS TERM PRESENT LAST TERM YEAR 13 13 100% OTHER INDIVIDUALS EXPRESSING INTEREST Gloria C. Aguilar 346 Brooks Dr., 78408 Retired, Department of Treasury and Tax Consultant. Attended Del Mar College. (12/12/14) Cary P. Campbell 2133 Terrace Bay Dr., 78418 Sales Representative -Crane and Equipment, Scott - Macon Equipment. Business Development in Local Industry. Received BBA in Marketing from Texas A&M University -Corpus Christi. Community Activities include: Politics for Community of Corpus Christi, American Cancer Society, Youth and Church Activities for Youth Programs. (12/9/13) F.M. (Mike) Kershaw 226 Lorraine, 78411 Kevin Karroll Nelson 406 E. Longview St., 78408 Ricardo Pedraza 317 Peoples St. #207, 78401 Morgan Spear 56 Camden 78412 Marine Surveyor and Consultant. Retired Harbor Pilot. Attended Southmost Junior College in Brownsville, Texas. Licensed First Class Pilot, Mate of Oceans and Master of Oceans. Member of Propeller Club, Council of Mastered Mariners, American Pilot Association and Texas State Pilot Association. Activities include: Quail Guide/Upland Bird Outfitter, Rotary Club, Corpus Christi Mustangs, International Seaman's Center, "Kika de la Garza" Plant Materials Center Board, Caesar Kleberg Wildlife Research Institute, Corpus Christi Yacht Club, and Church of the Good Shepherd. Recipient of "Man of the Year" — Propeller Club. (8/27/13) Post Doctoral Research Associate, Texas A&M University -Corpus Christi. Received a PhD in Coastal and Marine System Science and an M.S. in Computer Science. Currently conducting water/marine studies in Corpus Christi Bay and Nueces River Delta. (7/29/13) Project Engineer, HDR Engineering. Received BS and MS in Civil Engineering from Texas A&M University -Kingsville, Texas. Licensed Professional Engineer. Community Activities include: Rotarian and Knights of Columbus. Graduate of Leadership Corpus Christi Class 43. (8/18/14) President/Owner, Morgan Spear Associates, Inc. Received Bachelor of Architecture from University of Texas at Austin. Licensed to practice Architecture. Activities include: American Institute of Architects, C.C. Chapter of AIA, Texas Society of Architects, Church of the Good Shepherd, Alpha Tau Omega and Texas Exes. Board member of Centennial Heritage House and House Committee at Corpus Christi Country Club. Formerly Served on the Zoning Board of Adjustment. (6-05-14) Wayne M. Squires 3642 Aransas St., 78411 President and CEO, Orion Drilling Company, LLC. Received Bachelor of Science in Petroleum and Natural Gas Engineering from Pennsylvania State University. Currently serves on Del Mar College Foundation Board of Trustees, Del Mar College Executive Committee -Past President, Texas A&M College Foundation Board of Trustees, and Airport Board. (Will resign from Airport Board if appointed.) (12/18/14) Karl A. Tomlinson 1234 Laguna Shores Rd., 78418 Broker/Owner, Tomlinson Property Sales & Management. Served in the United States Air Force — Air Traffic Controller. Employed at Hewlett- Packard Company. Received a Bachelor in Science Electronic Engineering Technology from DeVry University. Received MBA with Major in Marketing from Santa Clara University. (12/9/14) g. SISTER CITY COMMITTEE — Four (4) vacancies with terms to 9-15, 9-16, and 9-17. DUTIES: To study ways and means of improving relations with the Corpus Christi sister cities and to advise and consult with and assist the Mayor, the City Council, the City Manager and all other City agencies, boards and officials in accomplishing the purposes of the Sister City program. COMPOSITION: It shall consist of a Steering Committee of fifteen (15) members and various subcommittees, members who shall be broadly representative of the racial, religious and ethnic groups in the community. The members shall be appointed by the City Council and shall serve three-year terms or until their successors are appointed and qualified. The Steering Committee shall be responsible for the overall administration and implementation of the City's Sister City program. There shall be a subcommittee for each sister city authorized by Resolution of the City Council. Members of each such subcommittee shall be appointed by the Steering Committee plus members from the community at large as deemed necessary and sufficient by the Steering Committee. Each subcommittee shall be responsible, under the direction of the Steering Committee, for primary study, liaison and recommendations for each sister city. The officers of the committee shall consist of a General Chairman, Vice -Chairman for each of the Sister City subcommittees established in accordance with Sec. 2-152. The Chairman and each Vice - Chairman shall be elected by majority vote of the sister city committee annually. If the General Chairman is absent, a Vice -Chairman shall be elected from the committee to serve as General Chairman during his/her absence. ORIGINAL MEMBERS TERM APPTD. DATE ***Donald Russell 9-16 10-13-09 Alan Thornburg 9-15 10-13-09 John Maldonado 9-15 5-27-14 Misaki Berrios 9-17 5-27-14 Heather Moretzsohn, General Chair 9-16 1-11-11 Susane "Westi" Horn 9-17 11-15-11 ***Luci Walker 9-17 5-27-14 Hailey Jordan Kimball 9-15 6-12-12 John Richard Sloan 9-15 1-22-13 Wan Sun Kim 9-16 1-22-13 ***Yvonne Fernandez 9-15 1-22-13 Mark Bradsher 9-17 6-11-13 Lee White 9-17 9-09-14 *Vacant 9-16 Coretta Graham 9-16 5-27-14 Legend: *Vacant **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation INDIVIDUALS EXPRESSING INTEREST Brenda Acevedo 11318 Piedra Creek Dr., 78410 United States Veteran. Received a Masters in Clinical Counseling. Volunteer at Metro Ministries and Calallen High School. (11/1/14) Charles F. Bass 13513 Port Royal Court, 78418 Margareta Fratila 3606 Tripoli Dr., 78415 Ashley Higson 5801 Aava Dr., 78414 William Bryan Menard, Jr. 1508 6th St., 78404 Retired Psychologist, United States Army. Received B.S., M.S., Ph.D., and M.D. Active in the American Board of Professional Psychology. (8/25/14) Owner, Margaret' s Greenhouse and European Floral Design. Received Master of Science in Horticulture and Agriculture from Horticultural University of Bucharest, Romania, Master of Art Degree from Webster University at St. Louis, Missouri and Certification in Secondary Education from Corpus Christi State University. Activities include: Americans for Prosperity, Texas State Society of Washington, D.C., Society of American Florists, Republican Women's Club and Numerous Other Organizations. Recipient of Republican Senatorial Medal of Freedom, 2003. Formerly Served on the Library Board. (11/7/14) Director of Communications, Corpus Christi Convention and Visitors Bureau. Community Activities include: Board Member of Greater Corpus Christi Hospitality Association, Junior League of Corpus Christi, American Cancer Society, Women;s Shelter of South Texas, Ronald McDonald House, and Downtown Management District Volunteer. (1/14/15) Purchasing Manager, Menard Electronics, Inc. Received BA in Political Science from Texas A&M University -Corpus Christi. (12/16/14) h. TRANSPORTATION ADVISORY COMMITTEE — One (1) vacancy with term to 4- 30-16. DUTIES: To be responsible for public advisory jurisdiction and citizen traffic safety investigation, traffic accident, injury and damage prevention in the City; developing and implementing coordinated traffic safety programs which meet local needs; acting in an advisory capacity to the City Council and the City Manager in the coordination of traffic safety activities of the official agencies and departments of the City; promoting public acceptance of official programs proposed or initiated by the City; fostering public knowledge and support of traffic law enforcement and traffic safety problems; cooperating with public and private school systems in promoting traffic safety training aids in the schools; promoting the education of the public in traffic safety and, generally assisting in the overall reduction of traffic deaths, injuries, damage, and accidents on the City's streets. COMPOSITION: Nine (9) members appointed by the City Council for three-year terms to provide advice on transportation and traffic safety matters. The Committee elects a Chairman and Vice -Chairman annually. ORIGINAL MEMBERS TERM APPTD. DATE Edd Price, Chair 4-30-17 5-26-09 Sheila Cudd, Co -Chair 4-30-15 2-10-09 ***Bill Strawn 4-30-16 5-27-14 Gretchen Arnold 4-30-15 5-08-12 Scott M. Harris 4-30-16 3-19-13 Dennis L. Miller, P.E., CFM 4-30-17 2-11-14 Christina Cisneros -Guzman 4-30-16 9-30-14 Anthony Gavlik 4-30-15 9-30-14 Leo Rios 4-30-17 9-30-14 Legend: *Seeking reappointment **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation INDIVIDUALS EXPRESSING INTEREST Sonia Castillo 7313 Pepper Ridge Rd., 78413 Margareta Fratila 3606 Tripoli Dr., 78415 Coordinator, 3rd Coast Research Assoc., Received a Bachelor of Arts in Natural Science and a Master of Science in Environmental Science. Community Activity includes: Community Outreach Regarding Clinical Research Awareness. (8/18/14) Owner, Margaret' s Greenhouse and European Floral Design. Received Master of Science in Horticulture and Agriculture from Horticultural University of Bucharest, Romania, Master of Art Degree from Webster University at St. Louis, Missouri and Certification in Secondary Education from Corpus Christi State University. Activities include: Americans for Prosperity, Texas State Society of Washington, D.C., Society of American Florists, Republican Women's Club and Numerous Other Organizations. Recipient of Republican Senatorial Medal of Freedom, 2003. Formerly Served on the Library Board. (11/7/14) John Garcia 317 Peoples St., Apt. 205, 78401 Director of Sales, Comfort Suites. Community Activities include: Corpus Christi Chamber of Commerce, Corpus Christi Hispanic Chamber, Hospitality Sales Marketing Association, Harbor Lights Festival, and Dress for Success. Formerly served on the Transportation Advisory Committee. (1/6/15) Thomas L. Knight 1202 Southbay Dr., 78412 Rose Mary Knippa 422 Longview East, 78408 Ricardo Pedraza 317 Peoples St. #207, 78401 Robert Saldana 6430 Legacy Point, 78414 Tommy E. Watson, Jr. 660 Cantwell, 78408 Retired Business Owner/Teacher. Received BA in Public Administration, Education and Special Education. (9/26/14) Owner, Valdez Fleet Sales. Retired from Telephone Company. Formerly Served on ARB. Attended Del Mar College. (9/26/14) Project Engineer, HDR Engineering. Received BS and MS in Civil Engineering from Texas A&M University -Kingsville, Texas. Licensed Professional Engineer. Community Activities include: Rotarian and Knights of Columbus. Graduate of Leadership Corpus Christi Class 43. (8/18/14) Director of Transportation, Corpus Christi Regional Transportation Authority. Graduate of Texas A&M University -Corpus Christi. (12/4/14) Self -Employed Businessman. Attended former Texas A&I University (now TAMUK). Activities include: Rotary West Club -Corpus Christi, Barrows Club, and Northwest Business Association. Formerly served on the Transportation Advisory Committee. (1/7/15) i. TREE ADVISORY COMMITTEE — One (1) vacancy with term to 2-18-16 representing the following category: At -Large. DUTIES: To review and recommend a formal written plan to the City Council for the care, preservation, pruning, planting, replanting, removal or disposition of Public Trees. A Public Tree is defined as trees, shrubs, bushes and other woody vegetation planted in land owned by the City. They shall also provide recommendations to the Planning Commission on any proposed amendments to the Unified Development Code pertaining to planting and landscaping requirements. Working with the Parks and Recreation Department, the plan shall not conflict with the Parks and Recreation Master Plan, and the committee shall also develop a recommended list of tree species for Public Trees to be planted on lands owned by the City. It may also recommend to the Parks Director the removal of any Public Tree or part thereof which is damaged by disease, storm or which is in an unsafe condition. COMPOSITION: The committee shall consist of five (5) members to be approved by the City Council. Membership shall consist of one (1) Landscape Architect, one (1) Certified Arborist or Urban Forester, one (1) representative from electric utility provider AEP, Texas, and two (2) At -Large community members. Initially, two (2) members shall serve an initial term of one (1) year and three (3) members an initial term of two (2) years, determined by drawing at the initial committee meeting. Thereafter, terms of office shall be two years. ORIGINAL MEMBERS TERMS APPTD. DATES Viviana Rodriguez (Landscape Architect) 02-18-16 02-18-14 Phillip Christian (Arborist or Urban Forester) 02-18-16 02-18-14 Grant S. Ehlen (AEP Texas Representative) 02-18-15 02-18-14 Sylvia Campos (At -Large) 02-18-15 02-18-14 ***Jessica Weizer (At -Large) 02-18-16 02-18-14 Legend: *Seeking reappointment **Not seeking reappointment ***Resigned ****Exceeded number of absences allowed by ordinance *****Has met six-year service limitation INDIVIDUALS EXPRESSING INTEREST Jeremy Coleman 1525 Ocean Dr., Apt. A, 78404 Past President and Chief Executive Officer, J. L. Liberty Services. Currently pursuing a B.A. in Business Administration from Del Mar College. Community Activities include: Brooks Chapel Early Childhood Center Board (Chairman), Former Youth Council and Foundation of Corpus Christi (President), National Board Member of Camp Fire U.S.A., State of Texas Student Council Association, and Ignite Political Action Committee (President). (12/8/14) (At Large) Margareta Fratila 3606 Tripoli Dr., 78415 Owner, Margaret's Greenhouse and European Floral Design. Received Master of Science in Horticulture and Agriculture from Horticultural University of Bucharest, Romania, Master of Art Degree from Webster University at St. Louis, Missouri and Certification in Secondary Education from Corpus Christi State University. Activities include: Americans for Prosperity, Texas State Society of Washington, D.C., Society of American Florists, Republican Women's Club and Numerous Other Organizations. Recipient of Republican Senatorial Medal of Freedom, 2003. Formerly Served on the Library Board. (11/7/14) (At Large) AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: January 13, 2015 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com (361) 826-3169 Andres Leal, Jr., P.E., Interim Director of Street Operations andyl@cctexas.com (361) 857-1957 Purchase of Centracs Automated Transportation Management System CAPTION: Motion approving the purchase of one (1) Centracs Automated Transportation Management System from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $241,000.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. PURPOSE: To manage and monitor the performance of traffic signals and Intelligent Transportation System (ITS) on streets in order to improve traffic management operations. BACKGROUND AND FINDINGS: Currently, the City has a centralized location and electronic system from which to manage traffic signal timing & coordination, but in a very limited way. It is utilizing a closed loop coordination system with on -street master controllers to manage the traffic signal timings and coordination through the use of two legacy databases: Econolite Aries and Siemens Marc NX databases. Econolite Aries database has reached its maximum capabilities (cannot add any more devices to the database) and the Siemens Marc NX database is obsolete with no support from the manufacturer. ALTERNATIVES: None. OTHER CONSIDERATIONS: None. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Street Operations Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $241,000.00 $0 $241,000.00 Encumbered / Expended Amount $0 $0 $0 This item $241,000.00 $0 $241,000.00 BALANCE $0 $0 $0 Fund(s): Streets Fund Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GERALD GOODWIN ITEM 1. 2. DESCRIPTION Centracs ATMS (250 intersection license): Software, Licensing & Installation, Integration, Training & Testing, Hardware (Database/Application Server & Communications Server) Software Maintenance Agreement PRICE SHEET TLGPC CONTRACT NO. 432-13 CENTRACS AUTOMATED TRANSPORTATION MANAGEMENT SYSTEM QTY. UNIT Paradigm Traffic Systems, Inc. Arlington, Texas UNIT PRICE EXTENDED PRICE TOTAL: 1 1 Lot Year $227,000.00 $14,000.00 $227,000.00 $14,000.00 $241,000.00 AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: January 13, 2015 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com (361) 826-3169 Andres Leal, Jr., P.E., Interim Director of Street Operations andyl@cctexas.com (361) 857-1957 Purchase of Econolite Cobalt Controller 2100 CAPTION: Motion approving the purchase of 152, Econolite Cobalt Controller 2100 from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $448,400.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. PURPOSE: To replace all 152 Siemens Eagle controllers with Econolite due to incompatibility. BACKGROUND AND FINDINGS: There are 245 City maintained signalized intersections. The City traffic signals use two major brands: Econolite and Siemans Eagle. Siemens Eagle has phased out due to technical compatibility issues. Additionally the legacy data base does not work with the City's Windows 7 operating systems. Further, the TxDOT Corpus Christi District has adopted the Econolite Controller as their standard and is phasing out the Siemens controllers. The Seimens Eagle database phase out and conversion to Econolite will provide compatibility and uniformity with TxDOT and within the City's own system, which will ultimately move the City to a state of the art traffic signal system. ALTERNATIVES: None. OTHER CONSIDERATIONS: None. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Street Operations Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $618,400.00 $0 $618,400.00 Encumbered / Expended Amount $496.49 $0 $496.49 This item $448,400.00 $0 $448,400.00 BALANCE $169,503.51 $0 $169,503.51 Fund(s): Streets Fund Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON ITEM DESCRIPTION PRICE SHEET TLGPC CONTRACT NO. 432-13 NEMA TS2-1 TRAFFIC SIGNAL CABINETS QTY. UNIT Paradigm Traffic Systems, Inc. Arlington, Texas Econolite Cobalt Controller 2100 TOTAL: 152 Each UNIT PRICE $2,950.00 EXTENDED PRICE $448,400.00 $448,400.00 AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: January 13, 2015 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com (361) 826-3169 Andres Leal, Jr., P.E., Interim Director of Street Operations andyl@cctexas.com (361) 857-1957 Purchase of Traffic Signal Cabinets CAPTION: Motion approving the purchase of eighteen (18) National Electrical Manufacturers Association (NEMA) TS2-1 Traffic Signal Cabinets from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $148,032.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. PURPOSE: To replace the older, obsolete NEMA TS -1 Traffic Cabinets currently in use. BACKGROUND AND FINDINGS: There are 245 City maintained signalized intersections. Each intersection is equipped with a traffic control cabinet with various electronic control components. NEMA TS -1 Traffic Controller Cabinets are an older, obsolete technology. The NEMA TS -2 is a newer technology standard. TS -1 Cabinets are not compatible with the latest Intelligent Transportation Systems (ITS) and newer technology controllers, which limits their functionality. (Example: inability to communicate with all the components in the cabinet.) Furthermore, TS -1 cabinet parts are hard to find. The TS -2 cabinet assures substantially safer operation, is well supported, and the availability of diagnostics reduces liability exposure to the City. Three years ago TxDOT converted all their TS -1 Cabinets to TS -2. ALTERNATIVES: None. OTHER CONSIDERATIONS: None. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Street Operations Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $347,000.00 $0 $347,000.00 Encumbered / Expended Amount $30,375.00 $0 $30,375.00 This item $148,032.00 $0 $148,032.00 BALANCE $168,593.00 $0 $168,593.00 Fund(s): Streets Fund Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GERALD GOODWIN ITEM DESCRIPTION PRICE SHEET TLGPC CONTRACT NO. 432-13 NEMA TS2-1 TRAFFIC SIGNAL CABINETS QTY. UNIT Paradigm Traffic Systems, Inc. Arlington, Texas NEMA TS2-1 traffic signal cabinet assembly, 16 position backpanel, standard TXDOT plug -ins. 18 Each UNIT PRICE $8,224.00 EXTENDED PRICE $148,032.00 TOTAL: $148,032.00 AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: January 13, 2015 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com (361) 826-3169 Andres Leal, Jr., P.E., Interim Director of Street Operations andyl@cctexas.com (361) 857-1957 Purchase of Radar Vehicle Detection Systems CAPTION: Motion approving the purchase of six (6) radar vehicle detection systems from Paradigm Traffic Systems, Inc., Arlington, Texas for a total amount of $98,280.00. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). Funds have been budgeted in FY 2014-2015. PURPOSE: The smart micro radar vehicle detection system will be used to replace the existing video vehicle detection systems throughout the city. BACKGROUND AND FINDINGS: The radar vehicle detector is used to detect the presence of vehicles at signalized intersections or as they approach the intersections. Radar detection systems have proven to be more reliable and to require lower maintenance than video detection systems. Video detection cameras are affected by all types of weather conditions such as fog, rain, and sunlight. Dirty lenses require cleaning on average once every two weeks and have therefore become a high maintenance issue. All of these issues create a very inefficient traffic signal operation. The radar detection system will save on maintenance because there is no camera lens to clean and it will increase operational efficiency as radar is not affected by fog, rain, or sunlight. ALTERNATIVES: None. OTHER CONSIDERATIONS: None. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Street Operations Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $150,000.00 $0 $150,000.00 Encumbered / Expended Amount $0 $0 $0 This item $98,280.00 $0 $98,280.00 BALANCE $51,720.00 $0 $51,720.00 Fund(s): Red Light Photo Enforcement Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GERALD GOODWIN ITEM 1. DESCRIPTION Smart Micro Type 29 Radar Vehicle Detection System PRICE SHEET TLGPC CONTRACT NO. 432-13 RADAR VEHICLE DETECTION SYSTEMS QTY. 6 Paradigm Traffic Systems, Inc. Arlington, Texas UNIT Each UNIT PRICE $16,380.00 EXTENDED PRICE $98,280.00 TOTAL: $98,280.00 AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: TO: January 13, 2015 Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com (361) 826-3169 Andres Leal, Jr., P.E., Interim Director of Street Operations andyl@cctexas.com (361) 857-1957 Mark Van Vleck, P.E., Executive Director of Utilities Department markvv@cctexas.com (361) 826-1874 Service Agreement for Herbicide Application CAPTION: Motion approving a service agreement with DeAngelo Brothers, LLC, Katy, Texas for herbicide application in accordance with Bid Invitation No. BI -0300-14, based on only bid for an estimated annual expenditure of $82,462.89, of which $68,719.07 is required for the remainder of FY 2014-2015. The term of the contract will be for twelve (12) months with options to extend for up to two (2) additional twelve-month periods, subject to the approval of the Contractor and the City Manager or designee. Funds have been budgeted by the Street Operations Department in FY 2014-2015. PURPOSE: This service agreement will be utilized by Street Operations maintain curbs, medians, and islands and by the Utilities Department to maintain storm water rights-of-way. BACKGROUND AND FINDINGS: None. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Street Operations Department, Utilities Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fund(s): Streets Fund, Storm Water Fund Comments: The $68,719.07 financial impact shown above represents ten (10) months of expenditures that will be encumbered through the end of this fiscal year. The remaining $13,743.82 for the last two (2) months of the contract will be requested during the normal FY 2015-2016 budget approval process. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation Service Agreement Project to Date Fiscal Year: 2014- Expenditures Current 2015 (CIP only) Year Future Years TOTALS Line Item Budget $116,795.48 $13,743.82 $130,539.30 Encumbered / Expended Amount $1,588.50 $0 $1,588.50 This item $68,719.07 $13,743.82 $82,462.89 BALANCE $46,487.91 $0 $46,487.91 Fund(s): Streets Fund, Storm Water Fund Comments: The $68,719.07 financial impact shown above represents ten (10) months of expenditures that will be encumbered through the end of this fiscal year. The remaining $13,743.82 for the last two (2) months of the contract will be requested during the normal FY 2015-2016 budget approval process. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation Service Agreement HERBICIDE APPLICATION SERVICE Service Agreement No. THIS Herbicide Application Service (this "Agreement") is entered into by and between DeAngelo Brothers, LLC (the "Contractor") and the City of Corpus Christi, a Texas home -rule municipal corporation (the "City"), by and through its drily authorized City Manager or designee ("City Manager"), effective for all purposes upon execution by the City Manager. WHEREAS Contractor has proposed to provide Herbicide Application Service in response to Bid Invitation No. BI -0300-14 (which includes Specification No. 1175, dated 9/10/14) which is incorporated and attached as Exhibit A; WHEREAS the City has determined Contractor to be the lowest responsible bidder; NOW, THEREFORE, Contractor and City enter into this Agreement and agree as follows: 1. Services. Contractor will provide Herbicide Application Service in accordance with Bid Invitation No. BI -0300-14 (which includes Specification 1175, dated 9/10/14) (Exhibit A). 2. Term. This Agreement is for one (1) year commencing on the date signed by the last signatory hereto and continuing for one (1) year thereafter. The term includes an option to extend for up to two (2) additional twelve (12) month periods subject to the approval of the Contractor and the City Manager or his designee. 3. Contract Administrator. The Contract Administrator designated by the City is responsible for approval of all phases of performance and operations under this Agreement including deductions for non-performance and authorizations for payment. All of the Contractor's notices or communications regarding this Agreement must be directed to the Contract Administrator, who is the Street Operations Contract Administrator. 4. Independent Contractor. Contractor will perform the services hereunder as an independent contractor and will furnish such services in its own manner and method, and under no circumstances or conditions may any agent, servant or employee of the Contractor be considered an employee of the City. 5. Insurance. Before activities can begin under this Agreement, the Contractor's insurance company(ies) must deliver a Certificate of Insurance, as proof of the required insurance coverages to the Contract Administrator. Additionally, the Certificate must state that the Street Operations Contract Administrator will be given at least thirty (30) days' notice, by certified mail, of cancellation, material change in the coverages or intent not to renew any of the policies. The City must be named as an Additional Insured. The City Attorney must be given copies of all insurance policies within 15 days of the City Manager's written request. 6. Assignment. No assignment of this Agreement or any right or interest therein by the Contractor is effective unless the City first gives its written consent to such assignment. The performance of this Agreement by the Contractor is of the essence of this Agreement and the City's right to withhold consent to such assignment is within the sole discretion of the City on any ground whatsoever. 7. Fiscal Year. All parties recognize that the continuation of any contract after the close of any fiscal year of the City (the City's fiscal year ends on September 30th), is subject to appropriations and budget approval providing for covering such contract item as an expenditure in said budget. The City does not represent that said budget item will be actually adopted as that determination is within the sole discretion of the City Council at the time of adoption of each budget. 8. Waiver. No waiver of any breach of any term or condition of this Agreement, or Bid Invitation No. 131-0300-14 (which includes Specification No. 1175, dated 9/10/14), or the Contractor's bid offer to Bid Invitation No. BI -0300-14 (Exhibit B) waives any subsequent breach of the same. 9. Compliance with Laws. This Agreement is subject to all applicable federal, state and local laws. All duties of the parties will be performed in the City of Corpus Christi, Texas. The applicable law for any legal disputes arising out of this Agreement is the law of Texas and such form and venue for such disputes is the appropriate district, county or justice court in and for Nueces County, Texas. 10. Subcontractors. The Contractor may use subcontractors in connection with the work performed under this Agreement. When using subcontractors, however, the Contractor must obtain prior written approval from the Street Operations Contract Administrator. In using subcontractors, the Contractor is responsible for all their acts and omissions to the same extent as if the subcontractor and its employees were employees of the Contractor. All requirements set forth as part of this Agreement are applicable to all subcontractors and their employees to the same extent as if the Contractor and its employees had performed the services. 11. Amendments. This Agreement may be amended only by written Agreement duly authorized by the parties hereto and signed by the parties. 12. Termination. The City Manager may terminate this Agreement for Contractor's failure to perform the services specified in Bid Invitation No. BI -0300-14 (which includes Specification No. 1175, dated 9/10/14). Failure to keep all insurance policies in force for the entire term of this Agreement is grounds for termination. The Contract Administrator must give the Contractor written notice of the breach and set out a reasonable opportunity to cure. If the Contractor has not cured within the cure period, the City Manager may terminate this Agreement immediately thereafter. Alternatively, the City may terminate this Agreement upon twenty (20) days' written notice to the Contractor. However, the City may terminate this Agreement on twenty-four (24) hours' written notice to the Contractor for failure to pay or provide proof of payment of taxes as set out herein. 13. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes and all other related taxes according to Circular E Employer's Tax Guide, Publication 15, as it may be amended. Upon his request, the City Manager shall be provided proof of payment of these taxes within fifteen (15) days of such request. The Contractor may terminate this Agreement upon ninety (90) days' written notice to the City. 14. Drug Policy. The Contractor must adopt a Drug Free Workplace policy. 15. Violence Policy. The Contractor must adopt a Violence in the Workplace policy. 16. Notice. Notice may be given by fax, hand delivery or certified mail, postage prepaid, and is received on the day faxed or hand -delivered and on the third day after deposit in the U.S. mail if sent certified mail. Notice shall be sent as follows: IF TO CITY: City of Corpus Christi Attention: Street Operations Contract Administrator P.O. Box 9277 Corpus Christi, Texas 78469-9277 IF TO CONTRACTOR: Contractor Contact Address: City, State, DeAngelo Brothers, LLC Philip Bivens 6539 Pitts Road Katy TX 77493- 17. Month -to -Month Extension. If the City has not completed the procurement process and awarded a new Agreement upon expiration of the original contract period or any extension period, the Contractor shall continue to provide goods/services under this Agreement, at the most current price under the terms of this Agreement or extension, on a month-to-month basis, not to exceed six months. This Agreement automatically expires on the effective date of a new contract. 18. Severability. Each provision of the Agreement shall be considered to be severable and, if, for any reason, any such provision or any part thereof, is determined to be invalid and contrary to any existing or future applicable law, such invalidity shall not impair the operation of or affect those portions of this Agreement that are valid, but this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision or part thereof had been omitted. 19. INDEMNIFICATION. CONTRACTOR SHALL INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES AND AGENTS ("INDEMNITEES") FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, CLAIMS, DEMANDS, SUITS AND CAUSES OF ACTION OF ANY NATURE ON ACCOUNT OF DEATH, PERSONAL INJURIES, PROPERTY LOSS OR DAMAGE OR ANY OTHER KIND OF DAMAGE, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES WHICH ARISE OR ARE CLAIMED TO ARISE OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE PERFORMANCE OF THIS AGREEMENT, REGARDLESS OF WHETHER THE INJURIES, DEATH OR DAMAGES ARE CAUSED OR ARE CLAIMED TO BE CAUSED BY THE CONCURRENT OR CONTRIBUTING NEGLIGENCE OF INDEMNITEES, BUT NOT BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR GROUP. CONTRACTOR MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL REASONABLY SATISFACTORY TO INDEMNITEES AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING FROM ANY OF SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR SOONER TERMINATION OF THIS AGREEMENT. SIGNED this 20 day of October , 2014 Contractor DeAngelo Brothers, LLC i",'"'-' Philil Bivens Title: Branch Manager CITY OF CORPUS CHRISTI ("CITY") Christela Morales Date Procurement Manager Incorporated by Reference: Exhibit A: Bid Invitation No. BI -0300-14, including Specification 1175 (Available upon request) Exhibit B: Bidder's Bid (Available upon request) CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GERALD GOODWIN ITEM DESCRIPTION QTY BID TABULATION BID INVITATION NO. BI -0300-14 HERBICIDE APPLICATION SERVICE UNIT DeAngelo Brothers, LLC Katy, Texas UNIT TOTAL PRICE PRICE 1.0 1.1 1.2 2.0 2.1 Street Operations Department Locations (Application up to 6 times per year as needed): Curbs Medians and Islands Utilities Department Locations (Application up to 6 times per year as needed): Storm Water Right -Of -Way 1,118,580 Linear Feet 239,470 Linear Feet 55,351 Linear Feet $0.05 $55,929.00 0.09 21,552.30 0.09 4,981.59 Total: $82,462.89 AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: January 13, 2015 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com 361-826-3169 Stacie Talbert Anaya, Interim Director of Parks and Recreation staciet@cctexas.com 361-826-3476 Supply Agreements for Food Items CAPTION: Motion approving supply agreements with the following companies in the following amounts in accordance with Coastal Bend Council of Governments Bid Invitation No. CBCOG-15-1 for food items, for an estimated six-month expenditure of $193,802.43. The terms of the contracts shall be for six months. Funds are available through the Meals on Wheels Grant. LaBatt Food Service Corpus Christi, Texas 154 Line Items $78,687.09 Performance Food Group Victoria, Texas 127 Line Items $115,115.34 Grand Total: $193,802.43 PURPOSE: The food items will be used by Senior Community Services for the Elderly Nutrition Program. The items include canned and frozen fruit and vegetables, meats, and condiments. The food is prepared at the Senior Community Service Kitchen, served at the Senior Citizen Centers, and also delivered to households throughout the City. Approximately 160,714 meals will be prepared and served over the six-month contract period. BACKGROUND AND FINDINGS: Each year the City receives funds from State and Federal grants. Several grants are structured to support the elderly in the community. This award is a cooperative effort between the City of Corpus Christi and the following members of the Coastal Bend Council of Governments: Community Action Corporation of South Texas, Nueces County Senior Community Services, Refugio County Elderly Services, Bee Community Action Agency, Aransas County Council on Aging, Kleberg County Human Services, Duval County Elderly Program, and Live Oak County Elderly Program. ALTERNATIVES: The bids submitted by LaBatt Food Service and Performance Food Group meet all of the City's bid requirements. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -Emergency. DEPARTMENTAL CLEARANCES: Parks and Recreation Department FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2013-2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $1,060,596.00 $0 $1,060,596.00 Encumbered / Expended Amount $235,813.75 $0 $235,813.75 This item $193,802.43 $0 $193,802.43 BALANCE $630,979.82 $630,979.82 Fund(s): Parks and Recreation Grants. Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Award Summary COASTAL BEND COUNCIL OF GOVERNMENTS BID INVITATION NO. CBCOG-15-1 STAPLES, MEAT, & OTHER FROZEN FOODS FOR SENIOR COMMUNITY SERVICES Award Summary LABATT FOOD SERVICE Corpus Christi, Texas One hundred and fifty-four (153) line items consisting of canned fruit, canned vegetables, dried vegetables, canned meat, condiments, dressing, juices, oil & shortening, relishes, soups & bases, spices, starches & pasta, sugar & products, miscellaneous, beef, pork, poultry, frozen, breads, and dairy. PERFORMANCE FOOD GROUP Victoria, Texas One hundred and twenty-seven (128) line items consisting of canned fruit, dried fruit, canned vegetables, dried vegetables, canned meat, condiments, dressing, juices, oil & shortening, soups & bases, spices, starches and pasta, sugar & products, miscellaneous, beef, pork, poultry, prepared products, frozen, breads, frozen meals, and dairy. $78,687.09 $115,115.34 Grand Total: $193,802.43 AGENDA MEMORANDUM Future item for the City Council Meeting of January 13, 2015 Action item for the City Council Meeting of January 20, 2015 DATE: December 19, 2014 TO: Ronald L. Olson, City Manager THRU: Gustavo Gonzalez, P. E., Assistant City Manager of Public Works and Utilities gustavogo@cctexas.com (361) 826-3897 FROM: Valerie H. Gray, P. E., Interim Executive Director of Public Works valerieg@cctexas.com (361) 826-3729 Engineering Construction Contract FM 2444 Waterline Adjustments Task Order No. 5 and 6 CAPTION: Motion authorizing the City Manager, or designee, to execute a construction contract with Bay, Ltd of Corpus Christi, Texas in the amount of $783,023 for the TXDOT Participation Projects — Task Order Nos. 5 and 6 — FM 2444 Waterline Adjustments for the total base bid. PURPOSE: The purpose of this Agenda Item is to obtain authority to execute the construction contract with Bay, Ltd for the TXDOT Participation Projects — Task Order Nos. 5 and 6 — FM 2444 Waterline Adjustments for the total base bid. BACKGROUND AND FINDINGS: The proposed project consists of the removal of approximately 2,600 linear feet of existing 16 -inch PVC and 43 linear feet of existing 12 -inch PVC waterlines and appurtenances on FM 2444 from Kitty Hawk Drive to Botanical Gardens; installation of approximately 2,600 linear feet of new 16 -inch PVC waterline and appurtenances from Kitty Hawk Drive to Botanical Gardens, including a new 30 -inch x 113 -feet directional drilled steel encasement crossing at Kitty hawk Drive and water system reconnections, in accordance with the plans, specifications and contract documents. No Additive Alternates were requested in the bidding process. On October 1, 2014, the City received proposals from four (4) bidders and the bidders and their respective bids are as follows: Contractor Base Bid Bay, Ltd Corpus Christi, Texas $783,023.00 National Power Rodding Corporation Austin, Texas $792,904.49 Saenz Brothers Construction, LLC Donna, Texas $987,512.00 Jhabores Construction Company, Inc. Corpus Christi, Texas $1,498,890.00 The City's consultant, RVE, Inc., conducted a bid analysis of the four (4) proposals submitted to the City. RVE, Inc. determined that the lowest bidder based on the Total Base Bid is Bay, Ltd of Corpus Christi, Texas. Based on the information submitted, Bay, Ltd has the experience and resources to complete the project. ALTERNATIVES: 1. Authorize execution of the construction contract. 2. Do not authorize execution of the construction contract. (Not Recommended) OTHER CONSIDERATIONS: A Standard Utility Agreement, executed by the City on June 26, exists between the State of Texas acting through TXDOT (State) and the City of Corpus Christi whereas the State will reimburse the City 71.43% of the eligible cost to adjust, remove, and/or relocate the utilities as per the Construction Agreement. More specifically, the reimbursable costs include engineering services, construction materials, contract labor, equipment and City overhead. The 71.43% reimbursement was calculated based on the percent of the utilities to be relocated that reside in an easement (utilities to be relocated that reside in right-of-way is not reimbursable). The City will submit reimbursement to the State monthly and no later than 90 days after the costs are incurred. The State auditor may conduct an audit of any entity receiving funds under this contract. CONFORMITY TO CITY POLICY: Conforms to statutes regarding construction procurement criteria. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Water Department FINANCIAL IMPACT: Fiscal Year 2014-2015 Project to Date Expenditures Current Year Future Years TOTALS Budget $0.00 $1,768,243.08 $0.00 $1,768,243.08 Encumbered / Expended Amount $0.00 $0.00 $0.00 $0.00 This item $0.00 $783,023.00 $0.00 $783,023.00 Future Anticipated Expenditures This Project $0.00 $231,274.37 $0.00 $231,274.37 BALANCE $0.00 $753,945.71 $0.00 $753,945.71 Fund(s): Water CIP Comments: None RECOMMENDATION: City staff recommends that the construction contract be awarded to Bay, Ltd of Corpus Christi, Texas in the amount of $783,023 for the TXDOT Participation Projects — Task Order Nos. 5 and 6 — FM 2444 Waterline Adjustments for the total base bid. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation PROJECT BUDGET ID/IQ TXDOT Participation - Task Order Nos. 5 and 6 FM 2444 Water Utility Adjustments Task Order No. 5 16 -inch Waterline Task Order No. 6 12 -inch Waterline FUNDS AVAILABLE: TXDOT Reimbursement (71.43%) $618,243.08 Water CIP 1,150,000.00 Total $1,768,243.08 FUNDS REQUIRED: Construction (Bay, Ltd.) $783,023.00 Contingencies (10%) 78,302.30 Engineering Fees: Design Engineer- Task Order No. 5 (RVE, Inc.)* 47,805.00 Design Engineer- Task Order No. 6 (RVE, Inc.)** 34,695.00 Reimbursements: Contract Administration (Contract Preparation/Award/Admin) 13,702.90 Engineering Services (Project Mgmt/Constr Mgmt/Traffic Mgt) 25,448.25 Construction Observation Services 27,405.81 Misc. (Printing, Advertising, etc.) 3,915.12 Total $1,014,297.38 ESTIMATED PROJECT BUDGET BALANCE*** $753,945.70 * Design Contract awarded on November 11, 2013 to RVE, Inc. (administrative approval). Construction Observation Services is not included in Design Contract. ** Design Contract awarded on November 8, 2013 to RVE, Inc. (administrative approval). Construction Observation Services is not included in Design Contract *** The remaining funds will be used to support relocation of City -owned utilities on future TXDOT projects. FM 2444 WATERLINE ADJUSTMENTS TASK ORDER NO(s) 5 & 6 roject Location PROJECT # E13109 & E13110 ID/IQ TXDOT PARTICIPATION PROJECTS FM 2444 WATER UTILITY ADJUSTMENTS CITY COUNCIL EXHIBIT AR, „ CITY OF CORPUS CHRISTI, TEXAS DEPARMENT OF CAPITAL PROGRAMS PAGE 1 OF 1 Corpus Chr sti Capital Programs ID/IQ TXDOT Participation FM 2444 Water Utility Adjustments Task Order No. 5 16 -inch Waterline Task Order No. 6 12 -inch Waterline Council Presentation January 13, 2015 Project Location PROJECT #: E13109 & E1311C Project Scope coo Corpus Chr sti Capital Programs FM 2444 WATERLINE ADJUSTMENTS TASK ORDER NO(s) 5 & 6 Project Schedule k.ob Corpus Chr sti Capital Programs 2014 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June DESIGN AWARD BID CONSTRUCTION Project Budget atb Corpus Chr sti Capital Programs FUNDS AVAILABLE: TXDOT Reimbursement (71.43%) Water CIP $618,243.08 1,150,000.00 Total $1,768,243.08 FUNDS REQUIRED: Construction (Bay, Ltd.) $783,023.00 Contingencies (10%) 78,302.30 Engineering Fees: Design Engineer- Task Order No. 5 (RVE, Inc.)* Design Engineer- Task Order No. 6 (RVE, Inc.)** 47,805.00 34,695.00 Reimbursements 70,472.08 Total ESTIMATED PROJECT BUDGET BALANCE*** $1,014,297.38 $753,945.70 * Design Contract awarded on November 11, 2013 to RVE, Inc. (administrative approval). Construction Observation Services is not included in Design Contract. ** Design Contract awarded on November 8, 2013 to RVE, Inc. (administrative approval). Construction Observation Services is not included in Design Contract ***The remaining funds will be used to support relocation of City -owned utilities on future TXDOT projects. AGENDA MEMORANDUM Future item for the City Council Meeting of January 13, 2015 Action item for the City Council Meeting of January 20, 2015 DATE: December 19, 2014 TO: Ronald L. Olson, City Manager THRU: Gustavo Gonzalez, P. E., Assistant City Manager of Public Works and Utilities gustavogo@cctexas.com (361) 826-3897 FROM: Valerie H. Gray, P. E., Interim Executive Director of Public Works valerieg@cctexas.com (361) 826-3729 Engineering Construction Contract FM 2444 Waterline Adjustments Task Order No. 7 CAPTION: Motion authorizing the City Manager, or designee, to execute a construction contract with National Power Rodding Corporation of Austin, Texas in the amount of $70,306 for the TXDOT Participation Projects — Task Order No. 7 — FM 2444 Waterline Adjustments for the total base bid. PURPOSE: The purpose of this Agenda Item is to obtain authority to execute the construction contract with National Power Rodding Corporation for the TXDOT Participation Projects — Task Order No. 7 — FM 2444 Waterline Adjustments for the total base bid. BACKGROUND AND FINDINGS: The proposed project consists of extending a 72 -inch steel encasement pipe on an existing 48 -inch waterline crossing FM 2444 at County Road 43 in accordance with the plans, specifications and contract documents. No Additive Alternates were requested in the bidding process. On October 1, 2014, the City received proposals from four (4) bidders and the bidders and their respective bids are as follows: Contractor Base Bid National Power Rodding Corporation Austin, Texas $70,306.00 Saenz Brothers Construction, LLC Donna, Texas $74,000.00 Jhabores Construction Company, Inc. Corpus Christi, Texas $95,620.00 Bay, Ltd Corpus Christi, Texas $220,180.00 The City's consultant, RVE, Inc., conducted a bid analysis of the four (4) proposals submitted to the City. RVE, Inc. determined that the lowest bidder based on the Total Base Bid is National Power Rodding Corporation of Austin, Texas. Based on the information submitted, National Power Rodding Corporation has the experience and resources to complete the project. ALTERNATIVES: 1. Authorize execution of the construction contract. 2. Do not authorize execution of the construction contract. (Not Recommended) OTHER CONSIDERATIONS: A Standard Utility Agreement, executed by the City on June 26, 2014, exists between the State of Texas acting through TXDOT (State) and the City of Corpus Christi whereas the State will reimburse the City 100% of the eligible cost to adjust, remove, and /or relocate the utilities as per the Construction Agreement. More specifically, the reimbursable costs include engineering services, construction materials, contract labor, equipment and City overhead. The 100% reimbursement was calculated based on the percent of the utilities to be relocated that reside in an easement (utilities to be relocated that reside in right-of-way is not reimbursable). The City will submit reimbursement to the State monthly and no later than 90 days after the costs are incurred. The State auditor may conduct an audit of any entity receiving funds under this contract. CONFORMITY TO CITY POLICY: Conforms to statutes regarding construction procurement criteria. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Water Department FINANCIAL IMPACT: Fiscal Year 2014-2015 Project to Date Expenditures Current Year Future Years TOTALS Budget $0.00 $133,384.14 $0.00 $133,384.14 Encumbered / Expended Amount $0.00 $0.00 $0.00 $0.00 This item $0.00 $70,306.00 $0.00 $70,306.00 Future Anticipated Expenditures This Project $0.00 $63,078.14 $0.00 $63,078.14 BALANCE $0.00 $0.00 $0.00 $0.00 Fund(s): Water CIP Comments: None RECOMMENDATION: City staff recommends that the construction contract be awarded to National Power Rodding Corporation of Austin, Texas in the amount of $70,306 for the TXDOT Participation Projects — Task Order No. 7 — FM 2444 Waterline Adjustments for the total base bid. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation PROJECT BUDGET ID/IQ TXDOT Participation - Task Order No. 7 FM 2444 Water Utility Adjustments FUNDS AVAILABLE: Water CIP $133,384.14 FUNDS REQUIRED: Construction (National Power Rodding Corp.) $70,306.00 Contingencies (10%) 7,030.60 Engineering Fees: Design Engineer- Task Order No. 7 (RVE, Inc.)* 49,720.00 Reimbursements: Contract Administration (Contract Preparation/Award/Admin) 1,230.36 Engineering Services (Project Mgmt/Constr Mgmt/Traffic Mgt) 2,284.95 Construction Observation Services 2,460.71 Misc. (Printing, Advertising, etc.) 351.53 Total $133,384.15 ESTIMATED PROJECT BUDGET BALANCE $0.00 * Design Contract awarded on November 11, 2013 to RVE, Inc. (administrative approval). Construction Observation Services is not included in Design Contract. FM 2444 WATERLINE ADJUSTMENTS TASK ORDER NO. 7 FM 2444 00 N 2 LL Project Area Project Local PROJECT # E13111 ion FM 2444 2 LOCATION NOT TO SC MAP ALE ID/IQ TXDOT PARTICIPATION PROJECTS FM 2444 WATER UTILITY ADJUSTMENTS CITY COUNCIL EXHIBIT 00 di CITY OF CORPUS CHRISTI, TEXAS DEPARMENT OF CAPITAL PROGRAMS PAGE 1 OF 1 Corpus Chr sti Capital Programs ID/IQ TXDOT Participation FM 2444 Water Utility Adjustments Task Order No. 7 48 -inch Waterline Council Presentation January 13, 2015 Project Scope Corpus Chr}sti Capital Programs FM 2444 WATERLINE ADJUSTMENTS TASK ORDER NO. 7 - - • Project Area BM Project Location PROJECT # E13111 Project Schedule Corpus Chr}sti Capital Programs 2014 2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May DESIGN AWARD BID CONSTRUCTION Project Budget Corpus Chr sti Capital Programs FUNDS AVAILABLE: Water CIP FUNDS REQUIRED: Construction (National Power Rodding Corp.) Contingencies (10%) Engineering Fees: Design Engineer- Task Order No. 7 (RVE, Inc.)* Reimbursements Total ESTIMATED PROJECT BUDGET BALANCE $133,384.14 $70,306.00 7,030.60 49,720.00 6,327.55 $133,384.15 $0.00 * Design Contract awarded on November 11, 2013 to RVE, Inc. (administrative approval). Construction Observation Services is not included in Design Contract. AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for City Council Meeting January 20, 2015 DATE: 12/30/2014 TO: Ronald L. Olson, City Manager THRU: Susan Thorpe, Assistant City Manager SThorpe@cctexas.com 361-826-3898 FROM: Eddie Ortega, Director of Housing and Community Development EddieO@cctexas.com 361-826-3234 Motion to approve Type A Board Affordable Housing Goals and Strategies CAPTION: Motion to approve Type A Affordable Goals and Strategies. PURPOSE: The amendment to the 2006 Type A Affordable Housing Goals and Strategies will acknowledge and allow for the support of rental housing projects as an Affordable Housing strategy for the citizens of the City of Corpus Christi. The proposed 2014 revisions are consistent with the U.S. Department of Housing and Urban Development (HUD) regulations and reflect current economic conditions. BACKGROUND AND FINDINGS: In 2006, the then Director of the Neighborhood Services Department (now called the Housing and Community Development Department) proposed and obtained approval of the 2006 Type A Affordable Housing Goals and Strategies. Although these Goals and Strategies were approved by the 2006 Type A Board, the Goals and Strategies have not been actively pursued since at least FY 2009. Eight years have passed since the document was adopted, and many changes have occurred in the national, state and local housing environment since that time. One major change was the housing bubble and subsequent burst, which created a crisis nationwide. This crisis was due to several factors, but the end result was that foreclosures of homes became rampant, mortgages were more difficult to obtain and qualifying credit scores became more and more difficult to obtain. This in turn made homeownership more difficult for low income citizens. The need for affordable housing took on a new meaning, to include affordable rental properties. The current upturn in the local housing industry has increased the price of new and existing homes. At the same time, the U.S. Department of Housing and Urban Development has reduced the qualifying income level for services. These two factors have made homeownership harder to obtain for low income residents, making it imperative for low income residents to look toward rental property to meet their needs for an affordable home. For these reasons, the Housing and Community Development Department recommends the approval of the 2014 revisions to the Affordable Housing Strategies and Goals. ALTERNATIVES: N/A OTHER CONSIDERATIONS: N/A CONFORMITY TO CITY POLICY: The funding of affordable housing rental projects is an allowable expenditure in accordance with the definition of affordable housing, a modification of the 2006 Type A Affordable Housing Goals and Strategies to include the funding of rental projects was approved at the December 15, 2014 Type A Board meeting; the approval of the proposed modification will bring this request into conformation with the Type A Board policies and procedures. EMERGENCY / NON -EMERGENCY: Immediate action is necessary for the efficient and effective administration of the City's affairs. This is a routine, non -controversial item. DEPARTMENTAL CLEARANCES: Housing and Community Development staff, along with the Legal Department staff have reviewed and cleared the proposed amendment. FINANCIAL IMPACT: Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: N/A RECOMMENDATION: Housing and Community Development staff recommend the proposed amendment to the Type A Affordable Housing Goals and Strategies. LIST OF SUPPORTING DOCUMENTS: Proposed Affordable Housing Goals and Strategies (approved December 15, 2014) Corpus Christi Business and Job Development Corporation Affordable Housing Goals and Strategies Originally approved 2006: revised Dec. 2014 The following Affordable Housing goals, strategies, and activities were developed in 2006 through a series of facilitated meetings that involved various representatives from development, real estate, general business, and the community at -large. This planning effort identified the activities in the City and Region on which to focus time, resources, and attention of the Corpus Christi Business and Job Development Corporation (4A - Board) and City administration. This developed listing of Goals and Strategies will provide specific guidelines and strategic actions and tasks that will be used as an evaluation tool for the annual award of allocated Affordable Housing funds made available through the 118th cent sales tax initiative. The 4A Board should establish specific performance targets with each annual funding allocation and utilize these developed goals and strategies in an annual review to ensure completion of funded projects per proposals and timelines. Beard- Revisions in December 2014 are consistent with HUD regulations and current economic conditions. DESIRED RESULTS FOR AFFORDABLE HOUSING: To increase affordable housing opportunities for stable families to live in quality housing on a long-term basis GOAL 1: Increase the availability of affordable, accessible, and fair housing by sponsoring and supporting relative -relevant legislation, regulation, and policy that would provide a direct benefit to the homebuyer: STRATEGY 1.1 TASK 1.A Utilize resources/funding available for affordable housing programs to supplement the fees associated with infrastructure/construction costs and thus providing an economic incentive to builders and a direct benefit to homebuyers by sustaining affordability. Support Building Codes for cost effective construction (e.g. the omission of garages and allowing single -loaded driveways in affordable housing construction, and reducing the costs of development/construction fees associated with affordable housing projects) TASK 1.B Support Development Codes and Zoning Regulations (e.g. platting, allowing altemative housing in residential zoned districts) TIME FRAME: On-going with the initiation of these efforts in October 2006 RESPONSIBLE ORGANIZATIONS: City of Corpus Christi, Development Services, Planning Commission, City Council, Association of General Contractors, Builders Association, Coastal Bend Council of Governments Affordable Housing Committee EXPECTED OUTCOMES: To attract and retain builders for the construction of affordable housing and securing the price of affordable housing by reducing the construction and development costs and streamlining permitting processes. GOAL 2: Increase the purchase -availability of affordable, accessible, and fair housing by— 2 Corpus Christi: :to the citizens of the City STRATEGY 2.1 Provide purchase/payment assistance to potential homebuyers and assistance for development of affordable rental property TASK 2.A Support programs that provide assistance for homebuyers to buy down interest rates on affordable housing loans/mortgages TASK 2.B Support programs that provide assistance for homebuyers with down payment and closing costs on affordable housing TASK 2.0 Support programs and services that reduce loan amounts on affordable housing TASK 2.D Support programs that provide assistance for the development and sustainability of affordable and accessible rental property TIME FRAME: On-going RESPONSIBLE ORGANIZATIONS: 4A Board, City of Corpus Christi Community Development, Corpus Christi Community Development Corporation, City Council, Coastal Bend Council of Govemments, Community Housing Development Organizations (CHDO), Private and Public Financial Institutions, Non -Profit Housing Counseling Organizations, and Real Estate Industry EXPECTED OUTCOMES: To increase homeownership for single-family residences and the availability of affordable rental property, which will contribute to the overall re -vitalization and quality of life in existing neighborhoods GOAL 3: Concentrate efforts for affordable housing in target locations STRATEGY 3.1 TASK 3.A TASK 3.B STRATEGY 3.2 TASK 3.0 STRATEGY 3.3 TASK 3.D Support and prioritize infill housing projects in existing neigh- borhoods Increase the inventory of foreclosed residential lots for increased infill housing projects Review and identify vacant lots for potential purchase for infill and neighborhood revitalization projects. Utilize foreclosed property at City cost. Support rehabilitation projects/programs/services in existing neighborhoods. Continue to provide low interest/forgivable loans and grants to homeowners for emergency, minor and major rehabilitation projects. Support new development/construction and rehabilitation of affordable housing projects for single family ownership and rental housing. Provide loans and grants to assist in development, construction and rehabilitation of properties for affordable rental housing. TIME -FRAME: On-going RESPONSIBLE ORGANIZATIONS: City of Corpus Christi, Nueces County, Private and Public Financial Institutions, Non-profit Housing Counseling Organizations, Community Housing Development Organizations, Corpus Christi Community Development Corporation EXPECTED OUTCOMES: To increase home ownership of single-family residences in established and new neighborhoods. To increase home ewrieFshipavailability of affordable rental housing Of -single-family rocidonco in established and new neighborhoods. To improve the overall quality of life in existing neighborhoods. GOAL 4: To increase the participation and availability of Builders, Manufacturers, and Suppliers for affordable housing projects. STRATEGY 4.1 Support the use of industrialized (modular) and other altemative housing in existing neighborhoods. TASK 4.A Research and solicit qualified builders, manufacturers, and suppliers of alternative housing products. TASK 4.B Solicit the support of Economic Development Agencies, the Association of General Contractors and the Builders Association for affordable housing construction alternatives. TIME FRAME: On-going with the initiation of the research to begin November 2006 RESPONSIBLE ORGANIZATIONS: City of Corpus Christi, Coastal Bend Council of Governments Affordable Housing Committee, and Community Housing Development Organizations (CHDO), Associations of Builders and Contractors EXPECTED OUTCOMES: The availability of affordable housing options will be increased and varied. AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: TO: November 25, 2014 Ronald L. Olson, City Manager FROM: Mike Culbertson (361) 882-7448 mculbertson@ccredc.com Nominating Flint Hills Resources Corpus Christi, LLC as a Triple Jumbo Texas Enterprise Project CAPTION: Resolution nominating Flint Hills Resources Corpus Christi, LLC ("Flint Hills") to the Office of the Governor Economic Development & Tourism ("EDT") through the Economic Development Bank ("Bank") as a Triple Jumbo Enterprise Project pursuant to the Texas Enterprise Zone Act ("Act"). PURPOSE: Designate Flint Hills for a Triple Jumbo Enterprise Project for the Texas Enterprise Zone incentive. BACKGROUND AND FINDINGS: Under State Law, the Office of the Governor - Economic Development and Tourism Division through the Texas Economic Development Bank administers the Texas Enterprise Zone (TEZ) Program. According to the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code, the purpose of the program is to encourage job creation and retention and capital investment in areas of economic distress. The 78th Legislature amended the act to increase participation in the program, decrease paperwork and streamline the process. Under the amended act, communities are no longer required to submit an application and fee to create an Enterprise Zone; designation of an Enterprise Zone is automatic based on decennial figures. Areas designated as Enterprise Zones include census block groups with 20 % poverty and areas federally designated as Renewal Communities. Previously designated Enterprise Zones will be designated until their expiration, after which the area would need to meet the 20 % poverty guideline. A project seeking designation as a Texas Enterprise Zone Project still must seek nomination from the governing body to the Office of the Governor for consideration and designation. A designated project located in the Texas Enterprise Zone must agree to hire at least 25 %of its employees from the Enterprise Zone or economically disadvantaged groups and in return will receive a refund of sales and use tax (SUT) paid to the Office of the Comptroller. This project is located within an Enterprise Zone. The Program allows a refund of $2,500 for each job created or retained, up to 500 jobs. If investment levels are adequate, the local nominating governing body may nominate a project as a Double or Triple Jumbo Project designation, increasing the value per job created or retained to $5,000 or $7,500, respectively. Therefore, a Double Jumbo Project can receive a rebate of up to $2.5 million, and a Triple Jumbo Project can receive a rebate of up to $3.75 million. Level of Capital Investment Max Jobs Max Refund Per Max Potential Allocated Job Allocated Refund $40,000 - $399,999 10 $2,500 $25,000 $400,000 - $999,999 25 $2,500 $62,000 $1,000,000 - $4,999,999 125 $2,500 $312,500 $5,000,000 - $149,999,999 500 $2,500 $1,250,000 Double Jumbo Project $150,000-000 - $249,999,999 500 $5,000 $2,500,000 Triple Jumbo Project $250,000,000 + 500 $7,500 $3,750,000 The maximum refund that a business may receive is for 500 employees. If a company has more than 500 employees, it can request a designation to receive rebates for those employees over 500. To do this they must have another investment over and above the original designation. State Law allows communities with a population more than 250,000 to nominate up to nine projects per biennium which begins in September of each odd year through June of the following odd year. A Double Jumbo Project assumes two of the number of projects allowable and a Triple assumes three. Thus far, the City has nominated three businesses for this biennium. This nomination will use two of the City's four remaining nominations of local businesses. The City of Corpus Christi has nominated a number of projects in the past including Valero, Bay Ltd, CITGO, Stripes, Flint Hills Resources, and TPCO. Since 2003, the designated Enterprise Zone Projects have resulted in at least $2.278 billion in investment in Corpus Christi. This local capital investment represents a significant portion of all of the combined capital investment made in enterprise zones across the state. As Flint Hills announced on May 29, 2014, Flint Hills received approval from the U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality for a $600 million project at its West Refinery to process more domestic crude. This project will allow Flint Hills to process more of the crude received from Eagle Ford, while reducing criteria air emissions. This project also received media attention in 2013 for its collaboration with the University of Texas Environmental Law Clinic, which represents Citizens for Environmental Justice, and the Environmental Integrity Project (EIP). Flint Hills Resources worked with both organizations and agreed to additional emission reduction projects, more stringent operating requirements, monitoring and reporting. Flint Hills has proactively sought a working partnership with the UT -Environmental Law Clinic and EIP. These measures are above and beyond regulatory requirements. Flint Hills has been a part of this community since 1980. It operates two Corpus Christi refineries: the West Refinery, with a capacity of about 230,000 barrels per day, and the East Refinery, with a capacity of about 70,000 barrels per day. If the project is put in operation, up to 10 full-time employees may be added in addition to the retention of existing jobs at the site. The current employment level at the site is in excess of 1,300 employees as well as over 2,000 contractors. When the new construction begins, it will require additional contractors at the site. Flint Hills' investment of $600 million will include an added light ends unit, extensive crude unit conversion, and expansion of its hydrotreater expansion. This capital investment and retention of 500 jobs represent the basis for this Triple Jumbo enterprise project nomination ALTERNATIVES: Due to State statute no other entity can be the nominating authority. The City can choose not to nominate the company. OTHER CONSIDERATIONS: Flint Hills was nominated as a Double Jumbo in November 2014 because the City had used up the allotted nominations for the biennium. The State did not award all of the slots requested and the City now has five slots available instead of the four anticipated. The City nominated voestalpine for a Double Jumbo and Flint Hills for a Double Jumbo. With the added nomination available, Flint Hills is requesting the City nominate them for a Triple Jumbo. CONFORMITY TO CITY POLICY: This conforms to City policy of promoting economic development, attracting and retaining primary jobs to the area, and is regional in scope. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital x Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Comments: This incentive is a rebate of the State's portion of the sales tax and does not have a negative fiscal impact to the city. RECOMMENDATION: Staff recommends approval of the Resolution to nominate Flint Hills Corpus Christi, LLC as a Triple Jumbo Enterprise Project, as presented. LIST OF SUPPORTING DOCUMENTS: Resolution — Flint Hills TEZ Ordinance — Corpus Christi Texas Enterprise Zone (passed August 19, 2014) Page 1 of 2 Resolution nominating Flint Hills Resources Corpus Christi, LLC ("Flint Hills") to the Office of the Governor Economic Development & Tourism ("EDT") through the Economic Development Bank ("Bank") as a Triple Jumbo Enterprise Project pursuant to the Texas Enterprise Zone Act ("Act"). WHEREAS, the City of Corpus Christi ("City") has previously passed on August 26, 2014, Ordinance No. 030260 electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this Resolution are the same on this date as were outlined in Ordinance No. 030260; WHEREAS, the EDT through the Bank will consider Flint Hills as a triple jumbo enterprise project pursuant to a nomination and an application made by the City; WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; WHEREAS, pursuant to the Act, Flint Hills has applied to the City for designation as a triple jumbo enterprise project; and WHEREAS, the City finds that Flint Hills, located at 2825 Suntide Road, Corpus Christi Texas 78409, meets the criteria for designation as a double jumbo enterprise project under the Act on the following grounds: 1. Flint Hills is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located in an enterprise zone and at least twenty-five percent (25.0%) of the business' retained employees are residents of an enterprise zone or economically disadvantaged individuals; 2. Flint Hills is located in an enterprise zone, which is in Census Tract 50, Block Group 1, as defined by the most recent federal decennial census available at the time of designation, in which at least 20 percent of the residents of the block group have an income at or below 100 percent of the federal poverty level; 3. The designation of Flint Hills as a triple jumbo enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area; WHEREAS, the City finds that Flint Hills meets the criteria for tax relief and other incentives adopted by the City and nominates Flint Hills for triple jumbo enterprise project status on the grounds that it will be located at a qualified business site and will create a higher level of employment, economic activity, and stability; and Page 2 of 2 WHEREAS, the City finds that it is in the best interest of the City to nominate Flint Hills as a triple jumbo enterprise project pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the findings of the City Council and its actions approving this Resolution taken at the council meeting on January 20, 2015, are hereby approved and adopted. SECTION 2. That Flint Hills is a "qualified business" as defined in Section 2303.402 of the Act and meets the criteria for designation as a triple jumbo enterprise project as set forth in the Act. SECTION 3. That the enterprise project shall take effect on the date of designation of the enterprise project by the EDT and terminate 5 years after the date of designation. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Corpus Christi, Texas of , 2015 Nelda Martinez Mayor The above resolution was passed by the following vote: Nelda Martinez Carolyn Vaughn Rudy Garza Jr. Lucy Rubio Brian Rosas Chad Magill Colleen McIntyre Lillian Riojas Mark Scott THE STATE OF TEXAS § COUNTY OF NUECES § CITY OF CORPUS CHRISTI CERTIFICATION OF PUBLIC RECORD 1, the undersigned City Secretary of the City of Corpus Christi, Texas, so certify that the following is a true and correct copy of Ordinance No. 030260 passed and approved by Corpus Christi City Council on August 26, 2014 as same appears in the Official Records of the City of Corpus Christi, Texas, of which the City Secretary's Office is the lawful custodian. WITNESSETH MY HAND and the Official Seal of the City of Corpus Christi, Texas, this 28th day of August, 2014. (5 E A L) 1 Rebecca Huerta City Secretary Corpus Christi, Texas City of Corpus Christi Rebecca Huerta, City Secretary P.D. Box 9277 Corpus Christi, Texas 78469-9277 (361) 826-3145 rebeccah@cctexxas.Com ORDINANCE Authorizing the City Of Corpus Christi to participate in the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Government Code (The "Act"), providing tax incentives; Designating a liaison for overseeing Enterprise Projects and communicating with interested Parties WHEREAS, the City of Corpus Christi, Texas ("Corpus Christi") desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the City and to provide employment to residents of those areas; and WHEREAS, with proper notice to the public, a public hearing to consider this ordinance was held on Tuesday, August 19, 2014, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that passage of this ordinance would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The local incentives identified and summarized briefly in the attached Exhibit A, at the election of the governing body, are or will be made available to the nominated Project or activity of the qualified business site. SECTION 2. The City designates the City Manager or his designee as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. SECTION 3. This order shall take effect from and after its passage as the law and charter in such case provides. That the foregoing ordinance was read for the first time and passed to its second reading on this the 19th day of August, 2014, by the following vote: Nelda Martinez Wit, Kelley Allen�� Rudy Garza Priscilla Leal OJ/1\J-Mark Scott David Loeb Chad Magill Colleen McIntyre Lillian Riojas H A ['I 13' Page 2 of 2 That the foregoing ordinance was read for the second time and passed finally on this the 26th day of August, 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal a Mark Scott David Loeb PASSED AND APPROVED, this the 26th day of August, 2014. Rebecca Huerta City Secretary Nelda Martine Mayor Page 3 of 3 Exhibit "A" Incentives offered by the City of Corpus Christi Name of Incentive Description of Incentive Availability 1 Tax abatement Property tax reduction As approved by City Council 2 Tax Increment Financing Financing through the creation of tax increment reinvestment zones Citywide improvement projects 3 Freeport Exemption Property tax exemption for °°Freeport Property" Citywide 4 Economic DevelopmentCorpus Sales Tax 4A Contribution Christi Business & Job Development Corporation (4A Funds; now Type A) Citywide 5 Chapter 380 Agreement The City may provide economic incentives in accordance with the Corpus Christi Chapter 380 Economic development Program Policies and Procedures Citywide 6Incentives Other Tax Deferrals, Tax Refunds or Tax The City has three industrial districts that provide a platform for 1 the City to negotiate a payment in lieu of taxes Must be located in one of the city's three industrial districts 7 Impactllnspection Fee Exemptions The City may offer reduced development fees or a waiver of development fees to projects that meet specific eligibility criteria Citywide 8 Capital Improvement in Water and Sewer Facilities The City may provide infrastructure improvements for industries Citywide 9 Zoning Changes or Variances Allows changes in the zoning and variances. As approved by City Council 10 Building Code Exemptions Businesses in an industrial district are exempt from zoning, permitting, and building code enforcement requirements Must be located in one of the city's three industrial districts 11 Streamlined Permitting City may streamline the development permitting process, applicants must apply through the Corpus Christi EDC Citywide 12 Improved Fire and Police Protection Safety and protection of city residents. Citywide 13 Community Crime Prevention Programs Neighborhood Watch Program Citywide Page 4 of 4 14 Name of Incentive Special Public Transportation Routes or Reduced Fares Description of Incentive The City may provide special transportation routes or fares to city residents upon request Availability Citywide 15 Road Repair The City is in charge of implementing a multi -faceted street improvement plan Citywide 16 Low -Interest Loans for Housing Rehabilitation or New Construction Encourage home ownership for city residents through Section 108 Loan Guarantee Program Citywide 17 Low -Interest Loans for Business Section 108 Loan Guarantee Program Citywide 18 Problem Resolution Center Resource center for city residents Citywide 19 Promotion and Marketing Services Corpus Christi Regional Economic Development Corporation Citywide 20 Job Training and Employment Services Offered through the Corpus Christi Business & Job Development Corporation Citywide 21 Retraining Program Offered through the Corpus Christi Business & Job Development Corporation Citywide 22 Literacy and Employment Skills Programs Offered through the Corpus Christi Business & Job Development Corporation Citywide 23 Vocational Education Offered through the Corpus Christi Business & Job Development Corporation Citywide 24 Customized Job Training Offered through the Corpus Christi Business & Job Development Corporation Citywide AGENDA MEMORANDUM Future Agenda for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: January 13, 2015 TO: Ronald L. Olson, City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP©cctexas.com (361) 826-3227 Approval of the City's Investment Policy and Investment Strategies CAPTION: Resolution reaffirming the City of Corpus Christi's Investment Policy and Investment Strategies for Fiscal Year 2014-2015 PURPOSE: The Public Funds Investment Act requires annual review by the governing body of its Investment Policy, and adoption of a written instrument stating that it has reviewed the investment policy and investment strategies. BACKGROUND AND FINDINGS: Under Texas Government Code, Chapter 2256, Subchapter A. Authorized Investments For Governmental Entities, the State of Texas delineates the types of investments and the investment rules that must be followed by governmental entities. This chapter is often referred to as the "Public Funds Investment Act". In accordance with the Public Funds Investment Act, the governing body must approve the City's investment policy annually. City staff is recommending reaffirmation of the existing policy with only minor wording changes as outlined in the resolution. Additionally, the City has established an Investment Committee which consists of the City Manager, Deputy City Manager, Assistant City Managers, City Attorney, Director of Financial Services, and Assistant Director of Management and Budget, or their designees. The Committee met on December 11, 2014 and approved the Investment Policy. ALTERNATIVES: n/a OTHER CONSIDERATIONS: n/a CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON -EMERGENCY: n/a DEPARTMENTAL CLEARANCES: • Legal Department • Investment Committee FINANCIAL IMPACT: X Not Applicable ❑ Operating Expense ❑ Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - $ - $ - $ - Encumbered/Expended amount of (date) -- - - This item - $ - $ - $ - BALANCE - $ - $ - $ - FUND(S): COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the resolution as presented. LIST OF SUPPORTING DOCUMENTS: City Investment Policy (without appendices) City Investment Policy - redline (without appendices) Resolution Resolution WHEREAS, the City of Corpus Christi's Investment Policy and Investment Strategies were adopted pursuant to Resolution No. 022390 on October 24, 1995; WHEREAS, the Texas Public Funds Investment Act requires the governing body to annually review, amend as necessary, and reaffirm its investment policy and investment strategies; WHEREAS, the Investment Policy and Investment Strategies were previously reviewed during fiscal year 2013-2014 and reaffirmed pursuant to Resolution No. 030020 on December 11, 2013; and WHEREAS, the Investment Policy and Investment Strategies were reviewed for fiscal year 2014-2015 on December 11, 2014; require several amendments to clarify and correct certain provisions; and must be annually reaffirmed; therefore, Be it resolved by the City Council of the City of Corpus Christi, Texas, that: Section 1. The City Council has reviewed the City of Corpus Christi's Investment Policy and Investment Strategies for the current fiscal year 2014-2015. A copy of the City of Corpus Christi's Investment Policy, which contains the separate Investment Strategies, is attached to this resolution as Exhibit A and is incorporated by reference into this resolution as if set out here in its entirety. Section 2. The following amendments are made to the Investment Policy and Investment Strategies to correct and clarify certain provisions: (a) Cover Page: the date is amended to reflect the date of reaffirmation; (b) Page i, Table of Contents, Appendix A: the word "Texas" is added preceding "Public Funds Investment Act"; (c) Page i, Table of Contents, Appendix B: the title of the appendix is changed from "City's Code of Ethics Ordinance" to "Code of Ethics"; (d) Page 2, section III, entitled "Definitions": the definition of "Authorized City Representatives" is changed by deleting "officers" and replacing with "Officers" and by deleting "Deputy Director of Financial Services" and replacing with "Assistant Director of Financial Services"; (e) Page 2, section III, entitled "Definitions": the definition of "Director of Financial Services" is changed by deleting "Deputy Director of Financial Services" from the definition and replacing with "Assistant Director of Financial Services"; (f) Page 12, section VII, entitled "Designation of Responsibility", subpart A, entitled "Investment Committee", is changed by deleting the reference to "Deputy Director of Financial Services" in the paragraph and replacing it with "Assistant Director of Financial Services"; (g) Page 13, section VII, entitled "Designation of Responsibility", subpart C, entitled "Investment Advisor" is changed by deleting the word "A" in the second sentence of the paragraph, to read as follows: "The initial contract made under authority of this subsection may not be for a term longer than two years."; and (h) Page 15, section XI, entitled "Collateralization", subpart A, entitled "Pledged Collateral for Time and Demand Deposits" is changed by deleting the first sentence of the second paragraph, which reads "The market value of pledged collateral for time and demand deposits Collateral must be at least 102% of the principal plus accrued interest", and replacing with the following sentence: "The market value of pledged collateral for time and demand deposits must be at least 102% of the principal plus accrued interest." Section 3. As amended by Section 2 of this resolution, the City Council reaffirms the City of Corpus Christi's Investment Policy and Investment Strategies for the current fiscal year 2014-2015 and continues the policy and strategies in full force and effect. ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta, City Secretary Nelda Martinez, Mayor Corpus Christi, Texas of , 20 The above resolution was passed by the following vote: Nelda Martinez Rudy Garza Chad Magill Colleen McIntyre Lillian Riojas Brian Rosas Lucy Rubio Mark Scott Carolyn Vaughn CITY OF CORPUS CHRISTI, TEXAS FINANCIAL SERVICES TABLE OF CONTENTS Page I. INTRODUCTION 1 II. PURPOSE 1 III. DEFINITIONS 2 IV. INVESTMENT OBJECTIVES 4 V. AUTHORIZED INVESTMENTS AND MAXIMUM MATURITY 5 VI. INVESTMENT STRATEGIES 10 VII. DESIGNATION OF RESPONSIBILITY 12 VIII. INTERNAL CONTROLS 13 IX. COMPETITIVE SOLICITATION 14 X. AUTHORIZED COUNTER -PARTIES 14 XI. COLLATERALIZATION 15 XII. SAFEKEEPING OF CITY SECURITIES 16 XIII. INFORMATION REPORTING/PORTFOLIO EVALUATION 16 XIV. BANKING SERVICES 17 XV. ANNUAL POLICY ADOPTION 18 XVI. GENERAL PROVISIONS 18 APPENDICES A. TEXAS PUBLIC FUNDS INVESTMENT ACT 1-31 B. CODE OF ETHICS 1-9 C. RESOLUTION 1-2 D. LEGAL DEFENSE AND INDEMNIFICATION OF CITY OFFICERS AND EMPLOYEES 1 i I. INTRODUCTION The City of Corpus Christi shall invest all available monies in compliance with this Investment Policy as adopted by the City Council and authorized by the Public Funds Investment Act. Effective cash management is recognized as essential to good fiscal management. An aggressive cash management program will be pursued to maximize interest earnings as a viable and material revenue source. The City's portfolio shall be designated and managed in a manner responsive to the public trust and consistent with local, state and federal law. Investments shall be made with the primary objective of: • Preservation of capital and protection of principal; • Maintenance of sufficient liquidity to meet operating needs; • Security of city funds and investments; • Diversification of investments to minimize risk while maximizing interest earnings; and • Maximization of return on the portfolio. Earnings from investments will be used in a manner that will best serve the interests of the City of Corpus Christi. Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of that person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. 11. PURPOSE A. Authorization This Investment Policy is authorized by the City Council in accordance with Chapter 2256, Subchapter A of the Texas Government Code - The Public Funds Investment Act (the "Act" attached and incorporated as Appendix A). B. Scope This Investment Policy applies to all funds of the City, excluding pension funds, with regard to investing the financial assets of Funds, including, but not limited to: General Fund Special Revenue Funds Enterprise Funds Internal Service Funds Special Purpose Funds (within the control of Investment Officers) Capital Improvement Funds (including Bond Proceeds, Bond Reserves, Debt Service, Commercial Paper and any other debt instrument) In addition to this Policy, the investment of Bond Funds, Debt Service, and Reserve Funds shall be managed (including the yield calculation thereon) by 1 their governing ordinances and Federal Law, including the Tax Reform Act of 1986 and subsequent legislation. C. Review and Amendment This Policy shall be reviewed and adopted no less than annually by the City Council on or before December 31 of each calendar year. Amendments must be adopted by the City Council. The City Council shall adopt a written instrument by ordinance or resolution stating that it has reviewed the Investment Policy. This ordinance or resolution shall record any changes made to the Investment Policy. III. DEFINITIONS Authorized Broker/Dealer - Primary dealer and regional firms that have been selected by the federal underwriters to distribute their securities. Each authorized firm in a Broker/Dealer will offer the issue at the price authorized by the governmental agency on the initial market issuance. Authorized City Representatives — Investment Officers and City Officers authorized to execute transactions are designated in the attached and incorporated Appendix A on behalf of the City. (Specific positions so authorized are the City Treasurer, Investment Analyst, Controller, Chief Accountant, Assistant Director of Financial Services and Director of Financial Services). Authorized Investment — Authorized investments defined by this Policy with a maximum maturity are approved by the Investment Committee and City Council. All Policy authorized securities are listed in Section V. Collateral - Securities pledged by a banking institution or sold under a repurchase agreement, to guarantee City assets. All collateral must be AAA rated. The City requires U.S. Treasuries, U.S. Agency Securities or municipal obligations as collateral so that the market values can be readily determined at any point in time. Collateral requirements are defined in Section XI. Cusip Number - A cusip is a 9 -character alphanumeric code which identifies a financial security for purposes of facilitating clearing and settlement of trades. Custodian — An approved independent custodian charged with the safekeeping of securities owned by or pledged to the City. An independent custodian is one not affiliated with any pledging institution or counter -party. Director of Financial Services - The Director of Financial Services is the Municipal Finance Officer responsible for City investments, but not designated as an Investment Officer. The Director of Financial Services may designate the Assistant Director of Financial Services, Controller or Chief Accountant to assist in this process. Excess Cash Balances - Collected bank balances not needed to pay estimated check clearings. Failed Transaction — A transaction in which an investment is not delivered to an institution for operational or availability reasons. The security would fail to be delivered to the Custodian. 2 Institution - Any firm, bank, bank holding company, broker/dealer or Public Funds Investment Pool that offers to sell/buy a financial transaction/security to the City. All such firms must complete a Policy certification as stated by this Policy. Investment Advisor — SEC registered investment advisor contracted by the City to assist in the portfolio management process, reporting and treasury operations/controls. Investment Officers — Individuals designated by the City Council to execute investment transactions. Positions include only the City Treasurer and Investment Analyst. Investment Portfolio - All City monies and securities invested under authority of the Investment Officers. Qualified Representative — As defined by the Act, a person, who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) For a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) For a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; (C) For an investment public funds investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment public funds investment pool to sign the written instrument on behalf of the investment public funds investment pool; or (D) For an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or, if not subject to registration under that Act, registered with the State Securities Board, a person who is an officer or principal of the investment management firm. Reserve Funds - Funds designated by the City Council for specific purposes, which have not been appropriated for spending. Securities - Approved Investments designated by the Investment Committee, as defined by Section VII, to be held in the Investment Portfolio or acceptable to be pledged as Collateral to secure the monies of the City. Special Purpose Funds - Monies of non-profit corporations that Investment Officers are permitted to invest; includes such entities as the Coastal Bend Health Facilities Development Corporation, Corpus Christi Housing Finance Corporation, Corpus Christi Community Improvement Corporation, HOME Project, First Time Home Buyer, Corpus Christi Industrial Development Corporation, Corpus Christi Business and Job Development Corporation, North Padre Island Development Corporation, Corpus Christi Crime Control and Prevention District, and Corpus Christi Digital Community Development Corporation. 3 Third Party Safekeeping Institution - Any Institution not affiliated with an Institution delivering the Authorized Investment. IV. INVESTMENT OBJECTIVES The following states the investment objectives of the City in order of priority: A. Preservation and Safety of Principal Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall Investment Portfolio. B. Liquidity The City's Investment Portfolio must be structured in a manner which maintains the liquidity necessary to pay obligations as they become due. Sufficient cash flows must be maintained through cash flow analysis and by rapidly depositing monies and timing disbursements. Generally, Investments are matched to specific cash flow requirements such as payrolls, construction drawdown schedules, debt service payments, and other payables. Liquidity is also achieved by investing in Authorized Investments with active secondary markets or in Public Funds Investment Pools with stable net asset values. C. Investment Yield The City's Investment Portfolio shall be designed with the objective of regularly exceeding the average yield of the following benchmarks in a manner consistent with the principles of this Policy described in Section IV. A and B and reflecting the cash flow expectations and portfolio strategy of the City: Six-month average of Texpool, Lone Star, Texstar and Texas Daily. However, it must be recognized that differing interest rate environments will result in fluctuations. During a declining market, satisfying this objective may not be practical until Authorized Investments mature and can be re -invested, especially since preservation of capital is the first priority in the investment of monies pursuant to this Policy. For bond issues to which arbitrage restrictions apply, the primary objectives shall be to avoid negative arbitrage and to obtain market yields minimizing the costs associated with investing such monies. D. Diversification Diversification is required because of differing liquidity needs of the City and to control risk. Diversification minimizes the risk to the overall Investment Portfolio by spreading market and credit risk as well as potential losses on individual securities or market sector thereby enhancing safety of the Investment Portfolio. 4 Through the solicitation of competitive proposals, the City shall allocate and diversify its Investments through various Institutions. The following types of Investments will be solicited from approved Institutions: 1. Obligations of the United States; including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 2. Repurchase Agreements - through a Third Party Safekeeping Institution Agreement, which includes an approved primary dealer doing business in Texas as required by the PFIA; 3. Public Funds Investment Pools - through participation agreements; 4. Certificates of Deposit - through approved local banks or a broker that has a main office or a branch office in this state and is selected from a list adopted by the investing entity. 5. Money Market Mutual Funds; 6. Guaranteed Investment Contracts (for Bond Proceeds only); 7. Texas Term Investment Pool; and 8. Securities Lending Program. The City recognizes that investment risks can result from default risk, credit volatility risk, and market price risks due to various technical and fundamental economic factors, and other complications, leading to temporary illiquidity. To control market price risks, volatile Investments shall be avoided. To control default risk, the only acceptable method of payment will be on a delivery versus payment -basis for all transactions, except Public Funds Investment Pools and repurchase agreements. Delivery versus Payment provides for payment to Institutions at the time the Investments are recorded in book entry form at the City's Third Party Safekeeping Institution, currently maintained at the Federal Reserve. For certificates of deposit, sufficient Collateral at 102% of current market values must be pledged to protect all City monies or monies under its control that exceed Federal Deposit Insurance Corporation (FDIC) coverage; the Collateral must be safe kept at a Third Party Safekeeping Institution not affiliated with the bank or bank holding company providing the certificate of deposit. V. AUTHORIZED INVESTMENTS AND MAXIMUM MATURITY The City of Corpus Christi is authorized to invest only in the following investments. City monies, governed by this Policy, may not be invested in other investments permitted by law unless this Policy is amended and adopted to permit such investment. A. Authorized Investments 1. Obligations of the United States or its agencies and instrumentalities, excluding mortgage backed securities, which currently include the following stated final maturities: a. Short-term U.S. Treasuries: 1.) U.S. Treasury Bills 2.) U.S. Treasury Coupon Notes 3.) U.S. Treasury Notes and Strips Maximum Maturity up to 365 days* up to 3 years* up to 3 years* 5 b. U.S. Agencies: Maximum Maturity 1.)Federal Home Loan Bank up to 2 years* 2.)Federal National Mortgage Association. up to 2 years* 3.)Federal Farm Credit up to 2 years* 4.)Federal Home Loan Mortgage Corporation up to 2 years* 5.)Federal Agricultural Mortgage Corporation up to 2 years* *Reserve Funds invested in Treasury and Agency obligations may have a stated final maturity up to five years. 2. Repurchase Agreements up to 365 days Repurchase agreements must be fully collateralized at 102% with a defined maturity date, is secured by a combination of cash and obligations, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States placed with a primary government dealer with collateral, and safekept at a City approved Custodian, as provided under the provisions of the SIFMA (Securities Industry and Financial Markets Association) Master Repurchase Agreement. An executed agreement between the City, primary government dealer and Custodian will be on file before the City will enter into a tri -party repurchase agreement. Weekly monitoring by the City's Investment Officers or Advisor of all Collateral underlying repurchase agreements is required. More frequent monitoring may be necessary during periods of market volatility. 3. Public Funds Investment Pool up to 1 day A Public Funds Investment Pool duly created and managed in accordance with the Act to function as a money market mutual fund that marks its portfolio to market daily and, to the extent reasonably possible, which stabilizes its portfolio to market daily at $1 net asset value. If the ratio of the market value of the Public funds investment pool's portfolio divided by the book value of the portfolio is less than 99.50% or greater than 100.50%, the Public -funds investment pool's portfolio holdings shall be sold as necessary to maintain the ratio between 99.50% and 100.50%. The maximum amount that may be invested in any one public funds investment pool is five (5) percent of the total current invested balance of the Public Funds Investment Pool. The maximum total amount that may be invested in any one overnight Public Funds Investment Pool is thirty (30) percent of the Investment Portfolio. The Public Funds Investment Pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service. Public Funds Investment Pools may contain investment securities that are not directly authorized by this Policy, so long as (i) the AAA rating is standard herein above stated is satisfied, and (ii) the investment is permitted by Subchapter A of the Texas Public Funds Investment Act, Chapter 2256 of the Texas Government Code. 6 An investment pool may invest its funds in money market mutual funds to the extent permitted by and consistent with the investment policies and objectives adopted by the investment pool. In addition to the requirements of its investment policy and any other forms of reporting, a public funds investment pool created to function as a money market fund shall report yield to its investors in accordance with regulations of the Securities and Exchange Commission applicable to reporting by money market funds. If the investment pool operates as an internet website, the information in a disclosure instrument or report must be posted on the website. 4. Collateralized and Brokered Certificates of Deposit up to 2 years Certificates of deposit or other instruments issued by state and national banks domiciled in Texas that are: a. Guaranteed or insured by the Federal Deposit Insurance Corporation or its successor; or b. Secured at 102% by obligations defined by Section XI of this Policy. a. Collateralized Certificates of Deposit Certificates of deposit must be fully collateralized at 102% of their market value. The City requires the bank to pledge U.S. Treasuries or U.S. Agencies as collateral as described in section V, Subdivision A.1. The Investment Officers will monitor adequacy of collateralization on a weekly basis. b. Brokered Certificates of Deposit The Investment Officer shall monitor, on no less than a weekly basis, the status and ownership of all banks issuing brokered CDs owned by the City of Corpus Christi based upon information from the FDIC. Brokered CDs will be required to have a cusip number and be held in safekeeping at a third -party institution. If any bank has been acquired or merged with another bank in which brokered CDs are owned, the Investment Officer shall immediately liquidate any brokered CD which is above the FDIC insurance level. 5. Money Market Mutual Fund up to 1 year A AAA -rated no-load money market mutual fund (no service charge) is an authorized investment if: a. the money market mutual fund is registered with and regulated by the Securities and Exchange Commission; b. the money market mutual fund provides the City with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.); c. the money market mutual fund includes in its investment objectives the maintenance of a stable net asset value of $1 for each share; 7 d. the assets of the money market mutual fund are invested in those investments authorized under this Investment Policy; and e. the money market mutual fund has a dollar weighted average stated maturity of 90 days or fewer. 6. Guaranteed Investment Contracts up to 3 years Guaranteed investment contracts offer to pay a specific interest rate over a period of time, and can be structured to reflect an anticipated draw down schedule for capital improvements funded with bond proceeds. The collateral and monitoring requirements applicable to repurchase agreements shall apply to guaranteed investment contracts. A guaranteed investment contract may be utilized only in connection with the investment of bond proceeds. The maximum term of a guaranteed investment contract shall not exceed the anticipated construction period for the capital improvement, the construction of which is to be funded with Bond Proceeds. 7. Texas Term Investment Pool up to 1 year The Texas Term Investment Pool for fixed term investments was created as an investment pool and is a hybrid, mutual fund structure. The pool offers a fixed rate, fixed term portfolio option and is rated AAA by Standard and Poor's Ratings Services. Participants may lock in a fixed rate for a term of 60 to 365 days. 8. Securities Lending Program up to 1 year Securities lending program as defined by the Act qualifies as an authorized investment if the value of the securities loaned under the program is not less than 100%. However, the City requires 102% collateral. A loan made under the program must allow for termination at any time. Collateral is required and pledged to the City, held in the City's name and deposited with a custodian approved by the City. A loan made under the program must be secured by pledged securities described by Section 2256.009(a), pledged irrevocable letters of credit issued by a bank that is organized and existing under the laws of the United States or any other state and continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent or cash invested in accordance with Section 2256.009, 2256.013, 2256.014 or 2256.016. The terms of a loan made under the program must require that the securities being held as collateral be pledged to the investing entity, held in the investing entity's name and deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity. A loan made under the program must be placed through a primary government securities dealer or a financial institution doing business in Texas. An agreement to lend securities must have a term of one year or less. B. Weighted Average Maturity 8 In order to assure adequate liquidity and to minimize risk of loss to the Investment Portfolio due to interest rate fluctuations, investment maturities will not exceed the anticipated cash flow requirements of the Funds. Maturity guidelines by Fund are as follows: The weighted average maturity (WAM) of the overall portfolio shall be no more than 365 days. 1. Operating Funds The maximum weighted average maturity of Operating Funds shall be 365 days. The Investment Officers will monitor the maturity level and adjust as appropriate throughout the fiscal year. 2. Capital Improvement Funds The maximum weighted average maturity of Capital Improvement Funds shall be 365 days. The Authorized Investment maturity of that portion of the City Portfolio that represents Capital Improvement Funds (bond proceeds, reserve funds, debt service and Commercial Paper) shall be determined considering: a. The anticipated cash flow requirements of the Capital Improvement Funds; and The "temporary period" as defined by Federal income tax law during which time bond proceeds may be invested at an unrestricted yield. Bond proceeds subject to yield restriction shall be invested considering that yield restriction to avoid a challenge to the City's related indebtedness qualification as an obligation, the interest in which is not subject to federal taxation under section 103 of the Internal Revenue Code of 1986 as amended (the "IRC"). Bond proceeds subject to yield restriction shall be invested considering the anticipated cash flow requirements of the Capital Improvement Funds. For all bond proceeds controlled by the tax-exempt bond provisions of the IRC a complete yield analysis shall be performed to assure compliance with the IRC. An annual rebate calculation shall be performed to assure compliance with IRC. An annual rebate calculation shall be performed to determine the City's rebate liability at the end of each respective bond issue's five-year term. On the third anniversary of the respective issue date for each bond issue, bond proceeds from such issue will be yield restricted as required by the IRC. 3. Reserve Funds: Established by Operative Bond Funds or by the City Council. The following Reserve Funds may be invested up to five years in U.S. Treasuries or Agencies: Maximum Choke Canyon Fund 4050 $10,000,000 9 City monies governed by this Policy may not be invested in other investments permitted by law unless (i) such investments are specifically authorized for the investment of these monies by an ordinance adopted by the City Council issuing bonds or other debt obligations or (ii) this Policy is amended to permit such investment. C. Methods to Monitor Investment Market Price The City monitors the market price of investments obtained from Texpool's securities pricing service or the Bloomberg system which is made available through the City's authorized institutional brokers. The City may also obtain market price information from other nationally recognized sources of financial information such as the Wall Street Journal. VI. INVESTMENT STRATEGIES A. Investment Maturity Diversification A minimum of 15% of the total investment portfolio shall be held in Authorized Investments with maturity dates of 90 days or less for liquidity. U.S. Treasuries/Agencies may be purchased for longer-term maturities (greater than one year) but shall not exceed 40% of the total investment portfolio to preserve liquidity. The weighted average maturity limitation of the overall Investment Portfolio takes these requirements into account to protect liquidity and allow flexibility for market environments. Daily Authorized Investment reports shall monitor and address whether these diversification requirements are being met. Unless approved by the Investment Committee, the target percentages specified shall not be exceeded for temporary periods greater than thirty (30) days without the Investment Officers taking corrective action. B. Strategies 1. Operating and CIP Funds Investment strategies for operating funds and capital improvement funds have as their primary objective the assurance that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create an Investment Portfolio structure, which will experience minimal volatility during economic cycles. To accomplish this strategy, the City will purchase high credit quality, short -to -intermediate term investments primarily in a laddered structure. To pay for anticipated disbursements, Authorized Investments will be laddered to correspond with the projected cash flow needs of the City. Investments maturing that are acquired on the short end of the yield curve 90 days or less will meet immediate cash needs. A few Authorized Investments are purchased on the intermediate part of the yield curve (1- 3 year maturity) to lock in higher interest rates when rates are projected to decline due to the economic cycle of the economy. The dollar weighted average investment maturity of 365 days or less will be calculated using the stated final maturity dates of each investment. 10 2. Debt Service Funds Investment strategies for debt service funds shall have as the primary objective the assurance that debt service payment obligations are timely met. 3. Debt Service Reserve Funds Investment strategies for debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream with a low degree of volatility. In accordance with the specific bond authorization document, investments should be of high credit quality, with short -to -intermediate-term maturities and a maximum weighted average maturity of one year. 4. Special Purpose Funds Investment strategies for Special Purpose Funds will have as their primary objective the assurance that anticipated cash flows are matched with adequate Authorized Investment liquidity. The stated final maturity dates and weighted average maturity shall be structured on the project completion date. These investment portfolios shall include highly liquid investments to allow for flexibility and unanticipated project outlays. C. Achieving Investment Yield Objectives The City will utilize a conservative buy and hold strategy for the majority of the Investment Portfolio with investment selection based on legality, appropriateness, liquidity, and risk/return considerations. This strategy recognizes the unique needs of individual funds and provides for their recognized cash flow needs. The remaining portion of the Investment Portfolio may be invested actively and the reasons for doing so are: 1. Passive investment provides for: a. Investments targeted to pay upcoming anticipated disbursements. b. Liquidity to provide for a measure of anticipated disbursements and c. Laddering and diversification to manage market and credit risk. 2. Active investment provides for: a. The ability to improve yields in the Investment Portfolio by riding the yield curve during business cycle recovery and expansion periods. Interest rates on longer maturities typically exceed those on shorter maturities. Therefore, longer maturities (that can be held to maturity, if necessary) are purchased in anticipation of 11 selling later at the same or lower interest rate, improving the total return during the holding period. The ability to improve market sector diversification by swapping out of one investment into another for a better total return, to realign for disbursement projections, or to extend or shorten maturity depending on economic forecasts. The City Manager, or his designee, is required to approve any investment that must be sold at a loss. All gains and losses will be reported to the City Council and Investment Committee no less frequently than on a quarterly basis. VII. DESIGNATION OF RESPONSIBILITY A. Investment Committee An Investment Committee, consisting of City Manager, Assistant City Managers, Director of Financial Services (or if vacant, Assistant Director of Financial Services), City Attorney, Assistant Director of Financial Services/Management and Budget shall meet at least quarterly to determine operational strategies and to monitor investment results. The Investment Committee will be responsible for monitoring, reviewing and making recommendations regarding the City's Investment Portfolio to the City Council. The Investment Committee will review quarterly investment reports before submission to the City Council and will, on no less than an annual basis, review and adopt a list of authorized broker/dealers prepared by the City. The Investment Committee shall include in its deliberation such topics as: economic outlook, Investment Portfolio diversification, maturity structure, risk and performance of the portfolio(s). B. Investment Officers The authority to invest City funds and the execution of any documentation necessary to evidence the investment of City funds is granted to the Investment Officers. The City Treasurer and the Investment Analyst are the designated Investment Officers responsible for the daily operation of the investment program. Investment Officers will prepare monthly and quarterly reports, maintain information on counter -parties, monitor collateral, and attend training as required by the Act. As required by the Act, each Investment Officer shall attend ten hours of training in accordance with the Act within 12 months of assuming responsibilities and attend 10 hours of training that begins on the first day of that local government's fiscal year and consists of the two consecutive fiscal years after that date. Training should include topics such as investment controls, security risk, market risks, diversification of the investment portfolio and compliance with Texas laws. The Investment Committee approves investment — training seminars presented by the following organizations: Government Finance Officers Association Government Finance Officers Association of Texas 12 Government Treasurers Organization of Texas Association of Public Treasurer's of the US & Canada Texas Municipal League University of North Texas Center for Public Management If the Investment Officer desires to attend an investment -training seminar presented by another organization for training credit, such seminar must be approved by the Director of Financial Services. C. Investment Advisor The City Council may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) to provide for the investment and management of City funds. The initial contract made under authority of this subsection may not be for a term longer than two years. A renewal or extension of the contract must be made by the City Council by ordinance or resolution. VIII. INTERNAL CONTROLS The City Treasurer will establish a system of internal controls over the investment activities of the City and document such controls in the Investment Procedures Manual. These internal controls shall be approved by the Director of Financial Services. A. Standard of Care Investments shall be made with the same judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Prudent investment is to be judged by the Investment Portfolio as a whole, not on individual Investments. In the case of a loss required rating, if liquidation is necessary due to a public funds investment pool losing its AAA rating or for other reasons, liquidation will be done in a prudent manner consistent with the investment objectives of this Policy and as provided in 2256.021 of the Government Code the Act. The Investment Officer shall monitor, on no less than a weekly basis, the credit rating on all authorized investments in the portfolio based upon independent information from a nationally recognized rating agency. If any security falls below the minimum rating required by Policy, the Investment Officer shall notify the City Manager, Director of Finance and City Council of the loss of rating, conditions affecting the rating and possible loss of principal with liquidation options available, within two weeks after the loss of the required rating. Investment Officers and the Investment Advisor shall perform their duties strictly in accordance with the adopted Investment Policy. Investment Officers acting in good faith and in accordance with these policies and procedures shall be relieved of personal liability if exceptions are reported on a timely basis and prudent actions are taken to reduce potential loss. The Investment Committee and officers are indemnified as provided by City ordinance attached and incorporated as Appendix D. 13 B. Ethics Investment Officers, Investment Committee members and employees involved in the investment process shall comply with the City's Code of Ethics attached and incorporated as Appendix B which requires disclosure of financial interests by April of each year. These individuals shall refrain from personal business activities that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions. Officers and employees shall disclose to the City Council any material investment decisions. Officers and employees shall disclose to the council any material financial interest in institutions that conduct investment or banking transactions with the City. Any Investment officer who has a personal or business relationship with an organization seeking to sell an investment to the City shall file a statement disclosing that relationship or interest. Disclosure statements required under this subsection must be filed. IX. COMPETITIVE SOLICITATION Except for Repurchase Agreements, Guaranteed Investment Contracts, and Public Funds Investment Pools, any new issue investment will be purchased through an Authorized Broker/Dealer or directly through the issuer. Investment Officers identify the best rate prior to the purchase of an Authorized Investment that meets the City's cash flow needs at the time. Any Institution authorized to participate in the City's investment program must meet Collateral pledge requirements outlined in Section XI of these guidelines and must submit annual financial reports. X. AUTHORIZED COUNTER -PARTIES A. Broker/Dealers Any broker/dealer seeking to sell an Authorized Investment to the City is required to complete the questionnaire approved by the Investment Committee and furnish supporting documentation required by the Investment Committee. Information on the firms shall be maintained by the Investment Officers or the Investment Advisor. Securities qualifying as Authorized Investments shall only be purchased through those institutions approved by the Investment Committee. B. Policy Certification: Investments shall only be made with those Institutions who have executed a written certification in a form acceptable to the City, executed by a Qualified Representative of that Institution, and substantially to the effect that the Institution has: 1. Received, thoroughly reviewed and acknowledged, in writing, receipt and understanding of this Policy. 14 2. Acknowledged that the Institution has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Institution and the City that are not authorized by this Policy. C. Investments shall only be made with those institutions who have met the qualifications and standards established by the City's Investment Committee and set forth in the Investment Procedures Manual. D. The Investment Committee shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. E. The City Treasurer will request the Investment Committee to authorize deletion of institutions for: 1. Slow response time; 2. Inability to compete with other authorized firms; 3. Insufficient market information on technical or fundamental expectations based on economic indicators; 4. Failed transactions or continuing operational difficulties; 5. Unwillingness to continue to abide by this Policy; the provisions listed in IX.A.; 6. Other reasons as approved by the Investment Committee. XI. COLLATERALIZATION It is imperative that the securities in the Investment Portfolio be protected through independent safekeeping and all time deposits and demand bank cash balances be protected with sufficient collateral at a minimum of 102% daily of current market values to guard against market and volatility risk. A. Pledged Collateral for Time and Demand Deposits Depository collateral is pledged to and not owned by the City. All collateral shall be held by a custodian approved by the City under an executed collateral agreement. The market value of pledged collateral for time and demand deposits must be at least 102% of the principal plus accrued interest. All collateral shall be held by an independent custodian outside the holding company of the pledging bank. Original evidence of City collateralization in the form of original safekeeping receipts will be provided to the City Treasurer and will be maintained in the City Treasurer's Office. The custodian will provide a monthly listing of collateral describing the securities and giving a market value. An investment officer will approve and release all pledged collateral. The Investment Officers will monitor adequacy of collateralization on a weekly basis. B. Collateral Substitution Collateralized investments and certificates of deposit often require substitution of Collateral. Any Institution must contact the Investment Officers for approval and settlement. The substituted collateral's value will be calculated and substitution 15 approved if its value is equal to or greater than the required collateral value. Substitution is allowable for all transactions, but should be limited, to minimize the City's potential administrative problems. C. Collateral Reductions Should the collateral's market value exceed the required amount, any Institution may request approval from the Investment Officer to reduce collateral. Collateral reductions may be permitted only if the City's records indicate that the collateral's market value exceeds the required amount. D. Prohibited Securities Investment securities described in Section 2256.009(b), Government Code, shall not be eligible for use as collateral of City monies governed by this Policy. XII. SAFEKEEPING OF CITY SECURITIES A. Third Party Safekeeping Agreement The City shall utilize its banking services depository or other banks for the safekeeping of City owned securities. The delivery of all securities into safekeeping will be done on a delivery versus payment basis. B. Safekeeping of Certificate of Deposit Collateral All Collateral securing bank and savings and loan deposits must be held by a Third Party Safekeeping Institution approved by the City, or Collateral may be held at the Federal Reserve Bank. C. Safekeeping of Repurchase Agreement Collateral Repurchase Agreement Collateral is restricted to U.S. Treasuries and must be delivered to a Third -Party Safekeeping Institution with which the City has (subject to the limitation described in Section XI.D above) established a third -party safekeeping agreement. D. Guaranteed Investment Agreement Collateral Guaranteed investment contract collateral is restricted to U.S. Treasuries and Agencies (subject to the limitation described in Section XI.D above) and must be delivered to a Third -Party Safekeeping Institution with which a third -party safekeeping agreement has been established pursuant to the terms of the guaranteed investment contract. XIII. INFORMATION REPORTING/PORTFOLIO EVALUATION A. The City Treasurer and Investment Analyst as designated Investment Officers are responsible for reporting to the Investment Committee and City Council on a quarterly basis in accordance with the Act. B. Quarterly Investment Reports are to include the following in accordance with the Act: a. Combined Investment Portfolio Report of Market versus Book Values 16 b. Combined Portfolio Composition c. Individual Portfolio Composition d. Cash and Cash Equivalents, U.S. Treasuries and Investments Greater than One year e. Combined Summary of Investment Transactions f. Combined Investment Portfolio - Weighted Average Maturity g. Investment Revenue h. Analysis of Excess Collateral Coverage Aggregate Activity Per Broker j. Comparison of Investment Returns to Benchmarks k. Investment Portfolio Report — Lake Texana Project and Packery Channel Project Bond Funds by Issue m. Pools and Money Market Accounts Approved Institutional Brokers n. Economic and Interest Rate Forecast o. Glossary p. Compliance Statement q. Quarterly Investment Committee Meeting Minutes Internal Reporting/Evaluation In addition, the following reports are to be submitted on a monthly basis: 1) Cash position by bank account 2) Collateral position 3) Investment transactions C. External Reporting/Evaluations On a quarterly basis, any institution holding City time or demand deposits will provide to the Investment Officers for the institution's review a copy of the balance sheet and income statement for the Call Report for review. All depository and brokerage institutions will provide annual audited financial statements. Any Public Funds Investment Pools must provide reports and disclosure statements as required by the Act. D. Record Retention The City follows the guidelines of retaining records for five years from City's current fiscal year, as recommended in the Texas State Library Municipal Records Manual or may be authorized by the City's local records management guidelines. XIV. BANKING SERVICES All depository services are provided in the City's main depository agreement. Other services such as credit cards, direct deposit of payroll or other services may be administered through separate agreements. To aggressively invest Excess Cash Balances, controlled disbursements accounts, zero balance accounts and other cash management tools may be employed. 17 XV. ANNUAL POLICY ADOPTION This Policy will be reviewed and adopted by the City Council no less than annually. The accepting ordinance resolution will include a description of all changes made to this policy. XVI. GENERAL PROVISIONS A. Audits and Inspections. During regular business hours and as often as the Investment Officers deem necessary, the Institution providing certificates of deposit will make available for examination by the City Manager, his duly authorized agent, accountant, or legal representative, such records and data to assure the pledge of Collateral, availability of Collateral, and financial stability of the Institution. B. Compliance with Laws. Each Institution agrees to comply with all federal, state, and local laws, rules, regulations, and ordinances. The personnel or officers of such Institution shall be fully qualified and authorized under federal, state, and local law to perform the services set out under this Policy. Each Institution shall permit the Investment Officers to audit, examine, and make excerpts or transcripts from such records and to make audits of all contract, invoices, materials, and other data relating to applicable Investments. C. Performance Audits. The City's Annual External Financial Audit shall include a compliance audit of management controls on Investments and adherence to this Policy. If the City invests in other than money market mutual funds, investment public funds investment pools or accounts offered by its depository in the form of certificates of deposit or money market accounts; the quarterly reports prepared by Investment Officers for the City Council must be formally reviewed at least annually by an independent auditor. The results of the review must be reported to the City Council by that auditor. D. Investment Policy Resolution. The resolution authorizing this Investment Policy is attached hereto as Appendix C. 18 I CITY OF CORPUS CHRISTI, TEXAS FINANCIAL SERVICES INVESTMENT POLICY December 10, 2013 January 20, 2015. r Formatted: Font: (Default) Times New Roman, `16pt TABLE OF CONTENTS Page I . INTRODUCTION 1 II. PURPOSE 1 III. DEFINITIONS 2 IV. INVESTMENT OBJECTIVES 4 V. AUTHORIZED INVESTMENTS AND MAXIMUM MATURITY 5 VI. INVESTMENT STRATEGIES 10 VII. DESIGNATION OF RESPONSIBILITY 12 VIII. INTERNAL CONTROLS 13 IX. COMPETITIVE SOLICITATION 14 X. AUTHORIZED COUNTER -PARTIES 14 XI. COLLATERALIZATION 15 XII. SAFEKEEPING OF CITY SECURITIES 16 XIII. INFORMATION REPORTING/PORTFOLIO EVALUATION 16 XIV. BANKING SERVICES 17 XV. ANNUAL POLICY ADOPTION 18 XVI. GENERAL PROVISIONS 18 APPENDICES A. TEXAS PUBLIC FUNDS INVESTMENT ACT 1-31 B. CITY'S CODE OF ETHICS ORDINANCE 1-9 C. RESOLUTION 1-2 D. LEGAL DEFENSE AND INDEMNIFICATION OF CITY OFFICERS AND EMPLOYEES 1 i I. INTRODUCTION The City of Corpus Christi shall invest all available monies in compliance with this Investment Policy as adopted by the City Council and authorized by the Public Funds Investment Act. Effective cash management is recognized as essential to good fiscal management. An aggressive cash management program will be pursued to maximize interest earnings as a viable and material revenue source. The City's portfolio shall be designated and managed in a manner responsive to the public trust and consistent with local, state and federal law. Investments shall be made with the primary objective of: • Preservation of capital and protection of principal; • Maintenance of sufficient liquidity to meet operating needs; • Security of city funds and investments; • Diversification of investments to minimize risk while maximizing interest earnings; and • Maximization of return on the portfolio. Earnings from investments will be used in a manner that will best serve the interests of the City of Corpus Christi. Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of that person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. 11. PURPOSE A. Authorization This Investment Policy is authorized by the City Council in accordance with Chapter 2256, Subchapter A of the Texas Government Code - The Public Funds Investment Act (the "Act" attached and incorporated as Appendix A). B. Scope This Investment Policy applies to all funds of the City, excluding pension funds, with regard to investing the financial assets of Funds, including, but not limited to: General Fund Special Revenue Funds Enterprise Funds Internal Service Funds Special Purpose Funds (within the control of Investment Officers) Capital Improvement Funds (including Bond Proceeds, Bond Reserves, Debt Service, Commercial Paper and any other debt instrument) In addition to this Policy, the investment of Bond Funds, Debt Service, and Reserve Funds shall be managed (including the yield calculation thereon) by 1 their governing ordinances and Federal Law, including the Tax Reform Act of 1986 and subsequent legislation. C. Review and Amendment This Policy shall be reviewed and adopted no less than annually by the City Council on or before December 31 of each calendar year. Amendments must be adopted by the City Council. The City Council shall adopt a written instrument by ordinance or resolution stating that it has reviewed the Investment Policy. This ordinance or resolution shall record any changes made to the Investment Policy. III. DEFINITIONS Authorized Broker/Dealer - Primary dealer and regional firms that have been selected by the federal underwriters to distribute their securities. Each authorized firm in a Broker/Dealer will offer the issue at the price authorized by the governmental agency on the initial market issuance. Authorized City Representatives — Investment Officers and City officers Officers authorized to execute transactions are designated in the attached and incorporated Appendix A on behalf of the City. (Specific positions so authorized are the City Treasurer, Investment Analyst, Controller, Chief Accountant, Deputy Assistant Director of Financial Services and Director of Financial Services). Authorized Investment — Authorized investments defined by this Policy with a maximum maturity are approved by the Investment Committee and City Council. All Policy authorized securities are listed in Section V. Collateral - Securities pledged by a banking institution or sold under a repurchase agreement, to guarantee City assets. All collateral must be AAA rated. The City requires U.S. Treasuries, U.S. Agency Securities or municipal obligations as collateral so that the market values can be readily determined at any point in time. Collateral requirements are defined in Section XI. Cusip Number - A cusip is a 9 -character alphanumeric code which identifies a financial security for purposes of facilitating clearing and settlement of trades. Custodian — An approved independent custodian charged with the safekeeping of securities owned by or pledged to the City. An independent custodian is one not affiliated with any pledging institution or counter -party. Director of Financial Services - The Director of Financial Services is the Municipal Finance Officer responsible for City investments, but not designated as an Investment Officer. The Director of Financial Services may designate the Dcputy Assistant Director of Financial Services, Controller or Chief Accountant to assist in this process. Excess Cash Balances - Collected bank balances not needed to pay estimated check clearings. Failed Transaction — A transaction in which an investment is not delivered to an institution for operational or availability reasons. The security would fail to be delivered to the Custodian. 2 Institution - Any firm, bank, bank holding company, broker/dealer or Public Funds Investment Pool that offers to sell/buy a financial transaction/security to the City. All such firms must complete a Policy certification as stated by this Policy. Investment Advisor — SEC registered investment advisor contracted by the City to assist in the portfolio management process, reporting and treasury operations/controls. Investment Officers — Individuals designated by the City Council to execute investment transactions. Positions include only the City Treasurer and Investment Analyst. Investment Portfolio - All City monies and securities invested under authority of the Investment Officers. Qualified Representative — As defined by the Act, a person, who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) For a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) For a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; (C) For an investment public funds investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment public funds investment pool to sign the written instrument on behalf of the investment public funds investment pool; or (D) For an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or, if not subject to registration under that Act, registered with the State Securities Board, a person who is an officer or principal of the investment management firm. Reserve Funds - Funds designated by the City Council for specific purposes, which have not been appropriated for spending. Securities - Approved Investments designated by the Investment Committee, as defined by Section VII, to be held in the Investment Portfolio or acceptable to be pledged as Collateral to secure the monies of the City. Special Purpose Funds - Monies of non-profit corporations that Investment Officers are permitted to invest; includes such entities as the Coastal Bend Health Facilities Development Corporation, Corpus Christi Housing Finance Corporation, Corpus Christi Community Improvement Corporation, HOME Project, First Time Home Buyer, Corpus Christi Industrial Development Corporation, Corpus Christi Business and Job Development Corporation, North Padre Island Development Corporation, Corpus Christi Crime Control and Prevention District, and Corpus Christi Digital Community Development Corporation. 3 Third Party Safekeeping Institution - Any Institution not affiliated with an Institution delivering the Authorized Investment. IV. INVESTMENT OBJECTIVES The following states the investment objectives of the City in order of priority: A. Preservation and Safety of Principal Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall Investment Portfolio. B. Liquidity The City's Investment Portfolio must be structured in a manner which maintains the liquidity necessary to pay obligations as they become due. Sufficient cash flows must be maintained through cash flow analysis and by rapidly depositing monies and timing disbursements. Generally, Investments are matched to specific cash flow requirements such as payrolls, construction drawdown schedules, debt service payments, and other payables. Liquidity is also achieved by investing in Authorized Investments with active secondary markets or in Public Funds Investment Pools with stable net asset values. C. Investment Yield The City's Investment Portfolio shall be designed with the objective of regularly exceeding the average yield of the following benchmarks in a manner consistent with the principles of this Policy described in Section IV. A and B and reflecting the cash flow expectations and portfolio strategy of the City: Six-month average of Texpool, Lone Star, Texstar and Texas Daily. However, it must be recognized that differing interest rate environments will result in fluctuations. During a declining market, satisfying this objective may not be practical until Authorized Investments mature and can be re -invested, especially since preservation of capital is the first priority in the investment of monies pursuant to this Policy. For bond issues to which arbitrage restrictions apply, the primary objectives shall be to avoid negative arbitrage and to obtain market yields minimizing the costs associated with investing such monies. D. Diversification Diversification is required because of differing liquidity needs of the City and to control risk. Diversification minimizes the risk to the overall Investment Portfolio by spreading market and credit risk as well as potential losses on individual securities or market sector thereby enhancing safety of the Investment Portfolio. 4 Through the solicitation of competitive proposals, the City shall allocate and diversify its Investments through various Institutions. The following types of Investments will be solicited from approved Institutions: 1. Obligations of the United States; including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 2. Repurchase Agreements - through a Third Party Safekeeping Institution Agreement, which includes an approved primary dealer doing business in Texas as required by the PFIA; 3. Public Funds Investment Pools - through participation agreements; 4. Certificates of Deposit - through approved local banks or a broker that has a main office or a branch office in this state and is selected from a list adopted by the investing entity. 5. Money Market Mutual Funds; 6. Guaranteed Investment Contracts (for Bond Proceeds only); 7. Texas Term Investment Pool; and 8. Securities Lending Program. The City recognizes that investment risks can result from default risk, credit volatility risk, and market price risks due to various technical and fundamental economic factors, and other complications, leading to temporary illiquidity. To control market price risks, volatile Investments shall be avoided. To control default risk, the only acceptable method of payment will be on a delivery versus payment -basis for all transactions, except Public Funds Investment Pools and repurchase agreements. Delivery versus Payment provides for payment to Institutions at the time the Investments are recorded in book entry form at the City's Third Party Safekeeping Institution, currently maintained at the Federal Reserve. For certificates of deposit, sufficient Collateral at 102% of current market values must be pledged to protect all City monies or monies under its control that exceed Federal Deposit Insurance Corporation (FDIC) coverage; the Collateral must be safe kept at a Third Party Safekeeping Institution not affiliated with the bank or bank holding company providing the certificate of deposit. V. AUTHORIZED INVESTMENTS AND MAXIMUM MATURITY The City of Corpus Christi is authorized to invest only in the following investments. City monies, governed by this Policy, may not be invested in other investments permitted by law unless this Policy is amended and adopted to permit such investment. A. Authorized Investments 1. Obligations of the United States or its agencies and instrumentalities, excluding mortgage backed securities, which currently include the following stated final maturities: a. Short-term U.S. Treasuries: Maximum Maturity 1.) U.S. Treasury Bills up to 365 days* 2.) U.S. Treasury Coupon Notes up to 3 years* 3.) U.S. Treasury Notes and Strips up to 3 years* 5 b. U.S. Agencies: Maximum Maturity 1.)Federal Home Loan Bank up to 2 years* 2.)Federal National Mortgage Association. up to 2 years* 3.)Federal Farm Credit up to 2 years* 4.)Federal Home Loan Mortgage Corporation up to 2 years* 5.)Federal Agricultural Mortgage Corporation up to 2 years* *Reserve Funds invested in Treasury and Agency obligations may have a stated final maturity up to five years. 2. Repurchase Agreements up to 365 days Repurchase agreements must be fully collateralized at 102% with a defined maturity date, is secured by a combination of cash and obligations, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States placed with a primary government dealer with collateral, and safekept at a City approved Custodian, as provided under the provisions of the SIFMA (Securities Industry and Financial Markets Association) Master Repurchase Agreement. An executed agreement between the City, primary government dealer and Custodian will be on file before the City will enter into a tri -party repurchase agreement. Weekly monitoring by the City's Investment Officers or Advisor of all Collateral underlying repurchase agreements is required. More frequent monitoring may be necessary during periods of market volatility. 3. Public Funds Investment Pool up to 1 day A Public Funds Investment Pool duly created and managed in accordance with the Act to function as a money market mutual fund that marks its portfolio to market daily and, to the extent reasonably possible, which stabilizes its portfolio to market daily at $1 net asset value. If the ratio of the market value of the Public funds investment pool's portfolio divided by the book value of the portfolio is less than 99.50% or greater than 100.50%, the Public -funds investment pool's portfolio holdings shall be sold as necessary to maintain the ratio between 99.50% and 100.50%. The maximum amount that may be invested in any one public funds investment pool is five (5) percent of the total current invested balance of the Public Funds Investment Pool. The maximum total amount that may be invested in any one overnight Public Funds Investment Pool is thirty (30) percent of the Investment Portfolio. The Public Funds Investment Pool must be continuously rated no lower than AAA or AAA -m or at an equivalent rating by at least one nationally recognized rating service. Public Funds Investment Pools may contain investment securities that are not directly authorized by this Policy, so long as (1) the AAA rating is standard herein above stated is satisfied, and (ii) the investment is permitted by Subchapter A of the Texas Public Funds Investment Act, Chapter 2256 of the Texas Government Code. 6 An investment pool may invest its funds in money market mutual funds to the extent permitted by and consistent with the investment policies and objectives adopted by the investment pool. In addition to the requirements of its investment policy and any other forms of reporting, a public funds investment pool created to function as a money market fund shall report yield to its investors in accordance with regulations of the Securities and Exchange Commission applicable to reporting by money market funds. If the investment pool operates as an Internet website, the information in a disclosure instrument or report must be posted on the website. 4. Collateralized and Brokered Certificates of Deposit up to 2 years Certificates of deposit or other instruments issued by state and national banks domiciled in Texas that are: a. Guaranteed or insured by the Federal Deposit Insurance Corporation or its successor; or b. Secured at 102% by obligations defined by Section XI of this Policy. a. Collateralized Certificates of Deposit Certificates of deposit must be fully collateralized at 102% of their market value. The City requires the bank to pledge U.S. Treasuries or U.S. Agencies as collateral as described in section V, Subdivision A.1. The Investment Officers will monitor adequacy of collateralization on a weekly basis. b. Brokered Certificates of Deposit The Investment Officer shall monitor, on no less than a weekly basis, the status and ownership of all banks issuing brokered CDs owned by the City of Corpus Christi based upon information from the FDIC. Brokered CDs will be required to have a cusip number and be held in safekeeping at a third -party institution. If any bank has been acquired or merged with another bank in which brokered CDs are owned, the Investment Officer shall immediately liquidate any brokered CD which is above the FDIC insurance level. 5. Money Market Mutual Fund up to 1 year A AAA -rated no-load money market mutual fund (no service charge) is an authorized investment if: a. the money market mutual fund is registered with and regulated by the Securities and Exchange Commission; b. the money market mutual fund provides the City with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.); c. the money market mutual fund includes in its investment objectives the maintenance of a stable net asset value of $1 for each share; 7 d. the assets of the money market mutual fund are invested in those investments authorized under this Investment Policy; and e. the money market mutual fund has a dollar weighted average stated maturity of 90 days or fewer. 6. Guaranteed Investment Contracts up to 3 years Guaranteed investment contracts offer to pay a specific interest rate over a period of time, and can be structured to reflect an anticipated draw down schedule for capital improvements funded with bond proceeds. The collateral and monitoring requirements applicable to repurchase agreements shall apply to guaranteed investment contracts. A guaranteed investment contract may be utilized only in connection with the investment of bond proceeds. The maximum term of a guaranteed investment contract shall not exceed the anticipated construction period for the capital improvement, the construction of which is to be funded with Bond Proceeds. 7. Texas Term Investment Pool up to 1 year The Texas Term Investment Pool for fixed term investments was created as an investment pool and is a hybrid, mutual fund structure. The pool offers a fixed rate, fixed term portfolio option and is rated AAA by Standard and Poor's Ratings Services. Participants may lock in a fixed rate for a term of 60 to 365 days. 8. Securities Lending Program up to 1 year Securities lending program as defined by the Act qualifies as an authorized investment if the value of the securities loaned under the program is not less than 100%. However, the City requires 102% collateral. A loan made under the program must allow for termination at any time. Collateral is required and pledged to the City, held in the City's name and deposited with a custodian approved by the City. A loan made under the program must be secured by pledged securities described by Section 2256.009(a), pledged irrevocable letters of credit issued by a bank that is organized and existing under the laws of the United States or any other state and continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent or cash invested in accordance with Section 2256.009, 2256.013, 2256.014 or 2256.016. The terms of a loan made under the program must require that the securities being held as collateral be pledged to the investing entity, held in the investing entity's name and deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity. A loan made under the program must be placed through a primary government securities dealer or a financial institution doing business in Texas. An agreement to lend securities must have a term of one year or less. B. Weighted Average Maturity 8 In order to assure adequate liquidity and to minimize risk of loss to the Investment Portfolio due to interest rate fluctuations, investment maturities will not exceed the anticipated cash flow requirements of the Funds. Maturity guidelines by Fund are as follows: The weighted average maturity (WAM) of the overall portfolio shall be no more than 365 days. 1. Operating Funds The maximum weighted average maturity of Operating Funds shall be 365 days. The Investment Officers will monitor the maturity level and adjust as appropriate throughout the fiscal year. 2. Capital Improvement Funds The maximum weighted average maturity of Capital Improvement Funds shall be 365 days. The Authorized Investment maturity of that portion of the City Portfolio that represents Capital Improvement Funds (bond proceeds, reserve funds, debt service and Commercial Paper) shall be determined considering: a. The anticipated cash flow requirements of the Capital Improvement Funds; and b. The "temporary period" as defined by Federal income tax law during which time bond proceeds may be invested at an unrestricted yield. Bond proceeds subject to yield restriction shall be invested considering that yield restriction to avoid a challenge to the City's related indebtedness qualification as an obligation, the interest in which is not subject to federal taxation under section 103 of the Internal Revenue Code of 1986 as amended (the "IRC"). Bond proceeds subject to yield restriction shall be invested considering the anticipated cash flow requirements of the Capital Improvement Funds. For all bond proceeds controlled by the tax-exempt bond provisions of the IRC a complete yield analysis shall be performed to assure compliance with the IRC. An annual rebate calculation shall be performed to assure compliance with IRC. An annual rebate calculation shall be performed to determine the City's rebate liability at the end of each respective bond issue's five-year term. On the third anniversary of the respective issue date for each bond issue, bond proceeds from such issue will be yield restricted as required by the IRC. 3. Reserve Funds: Established by Operative Bond Funds or by the City Council. The following Reserve Funds may be invested up to five years in U.S. Treasuries or Agencies: Maximum Choke Canyon Fund 4050 $10,000,000 9 City monies governed by this Policy may not be invested in other investments permitted by law unless (i) such investments are specifically authorized for the investment of these monies by an ordinance adopted by the City Council issuing bonds or other debt obligations or (ii) this Policy is amended to permit such investment. C. Methods to Monitor Investment Market Price The City monitors the market price of investments obtained from Texpool's securities pricing service or the Bloomberg system which is made available through the City's authorized institutional brokers. The City may also obtain market price information from other nationally recognized sources of financial information such as the Wall Street Journal. VI. INVESTMENT STRATEGIES A. Investment Maturity Diversification A minimum of 15% of the total investment portfolio shall be held in Authorized Investments with maturity dates of 90 days or less for liquidity. U.S. Treasuries/Agencies may be purchased for longer-term maturities (greater than one year) but shall not exceed 40% of the total investment portfolio to preserve liquidity. The weighted average maturity limitation of the overall Investment Portfolio takes these requirements into account to protect liquidity and allow flexibility for market environments. Daily Authorized Investment reports shall monitor and address whether these diversification requirements are being met. Unless approved by the Investment Committee, the target percentages specified shall not be exceeded for temporary periods greater than thirty (30) days without the Investment Officers taking corrective action. B. Strategies 1. Operating and CIP Funds Investment strategies for operating funds and capital improvement funds have as their primary objective the assurance that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create an Investment Portfolio structure, which will experience minimal volatility during economic cycles. To accomplish this strategy, the City will purchase high credit quality, short -to -intermediate term investments primarily in a laddered structure. To pay for anticipated disbursements, Authorized Investments will be laddered to correspond with the projected cash flow needs of the City. Investments maturing that are acquired on the short end of the yield curve 90 days or less will meet immediate cash needs. A few Authorized Investments are purchased on the intermediate part of the yield curve (1- 3 year maturity) to lock in higher interest rates when rates are projected to decline due to the economic cycle of the economy. The dollar weighted average investment maturity of 365 days or less will be calculated using the stated final maturity dates of each investment. 10 2. Debt Service Funds Investment strategies for debt service funds shall have as the primary objective the assurance that debt service payment obligations are timely met. 3. Debt Service Reserve Funds Investment strategies for debt service reserve funds shall have as the primary objective the ability to generate a dependable revenue stream with a low degree of volatility. In accordance with the specific bond authorization document, investments should be of high credit quality, with short -to -intermediate-term maturities and a maximum weighted average maturity of one year. 4. Special Purpose Funds Investment strategies for Special Purpose Funds will have as their primary objective the assurance that anticipated cash flows are matched with adequate Authorized Investment liquidity. The stated final maturity dates and weighted average maturity shall be structured on the project completion date. These investment portfolios shall include highly liquid investments to allow for flexibility and unanticipated project outlays. C. Achieving Investment Yield Objectives The City will utilize a conservative buy and hold strategy for the majority of the Investment Portfolio with investment selection based on legality, appropriateness, liquidity, and risk/return considerations. This strategy recognizes the unique needs of individual funds and provides for their recognized cash flow needs. The remaining portion of the Investment Portfolio may be invested actively and the reasons for doing so are: 1. Passive investment provides for: a. Investments targeted to pay upcoming anticipated disbursements. b. Liquidity to provide for a measure of anticipated disbursements and c. Laddering and diversification to manage market and credit risk. 2. Active investment provides for: a. The ability to improve yields in the Investment Portfolio by riding the yield curve during business cycle recovery and expansion periods. Interest rates on longer maturities typically exceed those on shorter maturities. Therefore, longer maturities (that can be held to maturity, if necessary) are purchased in anticipation of 11 selling later at the same or lower interest rate, improving the total return during the holding period. b. The ability to improve market sector diversification by swapping out of one investment into another for a better total return, to realign for disbursement projections, or to extend or shorten maturity depending on economic forecasts. The City Manager, or his designee, is required to approve any investment that must be sold at a loss. All gains and losses will be reported to the City Council and Investment Committee no less frequently than on a quarterly basis. VII. DESIGNATION OF RESPONSIBILITY A. Investment Committee An Investment Committee, consisting of City Manager, Assistant City Managers, Director of Financial Services (or if vacant, Deputy Assistant Director of Financial Services), City Attorney, Assistant Director of Financial Services/Management and Budget shall meet at least quarterly to determine operational strategies and to monitor investment results. The Investment Committee will be responsible for monitoring, reviewing and making recommendations regarding the City's Investment Portfolio to the City Council. The Investment Committee will review quarterly investment reports before submission to the City Council and will, on no less than an annual basis, review and adopt a list of authorized broker/dealers prepared by the City. The Investment Committee shall include in its deliberation such topics as: economic outlook, Investment Portfolio diversification, maturity structure, risk and performance of the portfolio(s). B. Investment Officers The authority to invest City funds and the execution of any documentation necessary to evidence the investment of City funds is granted to the Investment Officers. The City Treasurer and the Investment Analyst are the designated Investment Officers responsible for the daily operation of the investment program. Investment Officers will prepare monthly and quarterly reports, maintain information on counter -parties, monitor collateral, and attend training as required by the Act. As required by the Act, each Investment Officer shall attend ten hours of training in accordance with the Act within 12 months of assuming responsibilities and attend 10 hours of training that begins on the first day of that local government's fiscal year and consists of the two consecutive fiscal years after that date. Training should include topics such as investment controls, security risk, market risks, diversification of the investment portfolio and compliance with Texas laws. The Investment Committee approves investment — training seminars presented by the following organizations: Government Finance Officers Association Government Finance Officers Association of Texas 12 Government Treasurers Organization of Texas Association of Public Treasurer's of the US & Canada Texas Municipal League University of North Texas Center for Public Management If the Investment Officer desires to attend an investment -training seminar presented by another organization for training credit, such seminar must be approved by the Director of Financial Services. C. Investment Advisor The City Council may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) to provide for the investment and management of City funds. The initial A -contract made under authority of this subsection may not be for a term longer than two years. A renewal or extension of the contract must be made by the City Council by ordinance or resolution. VIII. INTERNAL CONTROLS The City Treasurer will establish a system of internal controls over the investment activities of the City and document such controls in the Investment Procedures Manual. These internal controls shall be approved by the Director of Financial Services. A. Standard of Care Investments shall be made with the same judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Prudent investment is to be judged by the Investment Portfolio as a whole, not on individual Investments. In the case of a loss required rating, if liquidation is necessary due to a public funds investment pool losing its AAA rating or for other reasons, liquidation will be done in a prudent manner consistent with the investment objectives of this Policy and as provided in 2256.021 of the Government Code the Act. The Investment Officer shall monitor, on no less than a weekly basis, the credit rating on all authorized investments in the portfolio based upon independent information from a nationally recognized rating agency. If any security falls below the minimum rating required by Policy, the Investment Officer shall notify the City Manager, Director of Finance and City Council of the loss of rating, conditions affecting the rating and possible loss of principal with liquidation options available, within two weeks after the loss of the required rating. Investment Officers and the Investment Advisor shall perform their duties strictly in accordance with the adopted Investment Policy. Investment Officers acting in good faith and in accordance with these policies and procedures shall be relieved of personal liability if exceptions are reported on a timely basis and prudent actions are taken to reduce potential loss. The Investment Committee and officers are indemnified as provided by City ordinance attached and incorporated as Appendix D. 13 B. Ethics Investment Officers, Investment Committee members and employees involved in the investment process shall comply with the City's Code of Ethics attached and incorporated as Appendix B which requires disclosure of financial interests by April of each year. These individuals shall refrain from personal business activities that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions. Officers and employees shall disclose to the City Council any material investment decisions. Officers and employees shall disclose to the council any material financial interest in institutions that conduct investment or banking transactions with the City. Any Investment officer who has a personal or business relationship with an organization seeking to sell an investment to the City shall file a statement disclosing that relationship or interest. Disclosure statements required under this subsection must be filed. IX. COMPETITIVE SOLICITATION Except for Repurchase Agreements, Guaranteed Investment Contracts, and Public Funds Investment Pools, any new issue investment will be purchased through an Authorized Broker/Dealer or directly through the issuer. Investment Officers identify the best rate prior to the purchase of an Authorized Investment that meets the City's cash flow needs at the time. Any Institution authorized to participate in the City's investment program must meet Collateral pledge requirements outlined in Section XI of these guidelines and must submit annual financial reports. 1 X. AUTHORIZED COUNTER -PARTIES A. Broker/Dealers Any broker/dealer seeking to sell an Authorized Investment to the City is required to complete the questionnaire approved by the Investment Committee and furnish supporting documentation required by the Investment Committee. Information on the firms shall be maintained by the Investment Officers or the Investment Advisor. Securities qualifying as Authorized Investments shall only be purchased through those institutions approved by the Investment Committee. B. Policy Certification: Investments shall only be made with those Institutions who have executed a written certification in a form acceptable to the City, executed by a Qualified Representative of that Institution, and substantially to the effect that the Institution has: 1. Received, thoroughly reviewed and acknowledged, in writing, receipt and understanding of this Policy. 14 /Formatted: No underline 2. Acknowledged that the Institution has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Institution and the City that are not authorized by this Policy. C. Investments shall only be made with those institutions who have met the qualifications and standards established by the City's Investment Committee and set forth in the Investment Procedures Manual. D. The Investment Committee shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. E. The City Treasurer will request the Investment Committee to authorize deletion of institutions for: 1. Slow response time; 2. Inability to compete with other authorized firms; 3. Insufficient market information on technical or fundamental expectations based on economic indicators; 4. Failed transactions or continuing operational difficulties; 5. Unwillingness to continue to abide by this Policy; the provisions listed in IX.A.; 6. Other reasons as approved by the Investment Committee. XI. COLLATERALIZATION It is imperative that the securities in the Investment Portfolio be protected through independent safekeeping and all time deposits and demand bank cash balances be protected with sufficient collateral at a minimum of 102% daily of current market values to guard against market and volatility risk. A. Pledged Collateral for Time and Demand Deposits Depository collateral is pledged to and not owned by the City. All collateral shall be held by a custodian approved by the City under an executed collateral agreement. The market value of pledged collateral for time and demand deposits Collateral must be at least 102% of the principal plus accrued interest. All collateral shall be held by an independent custodian outside the holding company of the pledging bank. Original evidence of City collateralization in the form of original safekeeping receipts will be provided to the City Treasurer and will be maintained in the City Treasurer's Office. The custodian will provide a monthly listing of collateral describing the securities and giving a market value. An investment officer will approve and release all pledged collateral. The Investment Officers will monitor adequacy of collateralization on a weekly basis. B. Collateral Substitution Collateralized investments and certificates of deposit often require substitution of Collateral. Any Institution must contact the Investment Officers for approval and settlement. The substituted collateral's value will be calculated and substitution 15 approved if its value is equal to or greater than the required collateral value. Substitution is allowable for all transactions, but should be limited, to minimize the City's potential administrative problems. C. Collateral Reductions Should the collateral's market value exceed the required amount, any Institution may request approval from the Investment Officer to reduce collateral. Collateral reductions may be permitted only if the City's records indicate that the collateral's market value exceeds the required amount. D. Prohibited Securities Investment securities described in Section 2256.009(b), Government Code, shall not be eligible for use as collateral of City monies governed by this Policy. XII. SAFEKEEPING OF CITY SECURITIES A. Third Party Safekeeping Agreement The City shall utilize its banking services depository or other banks for the safekeeping of City owned securities. The delivery of all securities into safekeeping will be done on a delivery versus payment basis. B. Safekeeping of Certificate of Deposit Collateral All Collateral securing bank and savings and loan deposits must be held by a Third Party Safekeeping Institution approved by the City, or Collateral may be held at the Federal Reserve Bank. C. Safekeeping of Repurchase Agreement Collateral Repurchase Agreement Collateral is restricted to U.S. Treasuries and must be delivered to a Third -Party Safekeeping Institution with which the City has (subject to the limitation described in Section XI.D above) established a third -party safekeeping agreement. D. Guaranteed Investment Agreement Collateral Guaranteed investment contract collateral is restricted to U.S. Treasuries and Agencies (subject to the limitation described in Section XI.D above) and must be delivered to a Third -Party Safekeeping Institution with which a third -party safekeeping agreement has been established pursuant to the terms of the guaranteed investment contract. XIII. INFORMATION REPORTING/PORTFOLIO EVALUATION A. The City Treasurer and Investment Analyst as designated Investment Officers are responsible for reporting to the Investment Committee and City Council on a quarterly basis in accordance with the Act. B. Quarterly Investment Reports are to include the following in accordance with the Act: a. Combined Investment Portfolio Report of Market versus Book Values 16 b. c. d. e. f. g. h. j. k. m. Combined Portfolio Composition Individual Portfolio Composition Cash and Cash Equivalents, U.S. Treasuries and Investments Greater than One year Combined Summary of Investment Transactions Combined Investment Portfolio - Weighted Average Maturity Investment Revenue Analysis of Excess Collateral Coverage Aggregate Activity Per Broker Comparison of Investment Returns to Benchmarks Investment Portfolio Report — Lake Texana Project and Packery Channel Project Bond Funds by Issue Pools and Money Market Accounts - Approved Institutional Brokers n. Economic and Interest Rate Forecast o. Glossary p. Compliance Statement q. Quarterly Investment Committee Meeting Minutes Internal Reporting/Evaluation In addition, the following reports are to be submitted on a monthly basis: 1) Cash position by bank account 2) Collateral position 3) Investment transactions C. External Reporting/Evaluations On a quarterly basis, any institution holding City time or demand deposits will provide to the Investment Officers for the institution's review a copy of the balance sheet and income statement for the Call Report for review. All depository and brokerage institutions will provide annual audited financial statements. Any Public Funds Investment Pools must provide reports and disclosure statements as required by the Act. D. Record Retention The City follows the guidelines of retaining records for five years from City's current fiscal year, as recommended in the Texas State Library Municipal Records Manual or may be authorized by the City's local records management guidelines. 1 XIV.r IV. BANKING SERVICES All depository services are provided in the City's main depository agreement. Other services such as credit cards, direct deposit of payroll or other services may be administered through separate agreements. To aggressively invest Excess Cash Balances, controlled disbursements accounts, zero balance accounts and other cash management tools may be employed. 17 Formatted: Font: (Default) Arial, 11 pt, Bold Formatted: List Paragraph, Indent: Left: 0", Numbered + Level: 1 + Numbering Style: I, II, III, ... + Start at: 13 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.75" + Indent at: 0.75", Tab stops: 0", Left + Not at 0.75" Formatted: Font: (Default) Arial, 11 pt ANNUAL POLICY ADOPTION This Policy will be reviewed and adopted by the City Council no less than annually. The accepting ordinance resolution will include a description of all changes made to this policy. XVI. GENERAL PROVISIONS A. Audits and Inspections. During regular business hours and as often as the Investment Officers deem necessary, the Institution providing certificates of deposit will make available for examination by the City Manager, his duly authorized agent, accountant, or legal representative, such records and data to assure the pledge of Collateral, availability of Collateral, and financial stability of the Institution. B. Compliance with Laws. Each Institution agrees to comply with all federal, state, and local laws, rules, regulations, and ordinances. The personnel or officers of such Institution shall be fully qualified and authorized under federal, state, and local law to perform the services set out under this Policy. Each Institution shall permit the Investment Officers to audit, examine, and make excerpts or transcripts from such records and to make audits of all contract, invoices, materials, and other data relating to applicable Investments. C. Performance Audits. The City's Annual External Financial Audit shall include a compliance audit of management controls on Investments and adherence to this Policy. If the City invests in other than money market mutual funds, investment public funds investment pools or accounts offered by its depository in the form of certificates of deposit or money market accounts; the quarterly reports prepared by Investment Officers for the City Council must be formally reviewed at least annually by an independent auditor. The results of the review must be reported to the City Council by that auditor. D. Investment Policy Resolution. The resolution authorizing this Investment - Policy is attached hereto as Appendix C. 184-9 Formatted: Title, Justified, Indent: Left: 0.5", Hanging: 0.5", Numbered + Level: 1 + Numbering Style: A, B, C, ... + Start at: 3 + Alignment: Left + Aligned at: 0.5" + Tab after: 0.75" + Indent at: 0.75", Tab stops: 1", List tab + Not at 0.75" AGENDA MEMORANDUM Future Item for the City Council Meeting of December 9, 2014 Action Item for City Council Meeting January 20, 2015 DATE: 11/24/2014 TO: Ronald L. Olson, City Manager THRU: Susan Thorpe, Assistant City Manager SThorpe@cctexas.com 361-826-3898 Eddie Ortega, Director of Housing and Community Development EddieO@cctexas.com 361-826-3234 FROM: Rudy Bentancourt, CD Administrator RudyB@cctexas.com 361-826-3021 Resolution in support of the proposed revitalization of the Corpus Christi Housing Authority — La Armada II Public Housing Complex CAPTION: Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed revitalization of the La Armada II Public Housing Complex. PURPOSE: The proposed resolution is requesting the Corpus Christi City Council to support the proposed La Armada II Complex Revitalization Plan in order to seek additional funding for the purpose of revitalizing the complex. BACKGROUND AND FINDINGS: The Corpus Christi Housing Authority — La Armada II Complex was constructed in 1939. This 400 unit affordable rental housing complex is in dire need of revitalization and currently has 93 units not in use due to deterioration. The Corpus Christi Housing Authority is proposing a redevelopment of the La Armada II Complex and is seeking funding from various "affordable housing" sources both local and federal. The Corpus Christi Housing Authority will be submitting an Operating Fund Financing Program application to the U.S. Department of Housing and Urban Development in order to secure local grant funds in order to fill the gap for the proposed revitalization of the La Armada II Complex. The Corpus Christi Housing Authority is requesting the formal support of the City Council. This support will allow for the submission of various needed funding applications. The Operating Fund Financing Program application will be submitted to HUD at the time Type A funds have been secured for the revitalization of the La Armada II Complex. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: City Council approval is required for the amendment of the resolution. EMERGENCY / NON -EMERGENCY: This item is non -emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: N/A RECOMMENDATION: Staff recommends the approval of this agenda item. LIST OF SUPPORTING DOCUMENTS: CCHA Resolution Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed revitalization of the La Armada II Public Housing Complex. Whereas, the Housing Authority of Corpus Christi is a Public Governmental Entity charged with providing Safe, Decent, and Affordable Housing to residents of Corpus Christi on behalf of the city of Corpus Christi; and Whereas, the La Armada II is a 400 -unit Public Housing Complex of the Housing Authority of Corpus Christi; and Whereas, La Armada II has faithfully served generations of families in Corpus Christi since its construction in 1939; and Whereas, 93 La Armada II units are currently off-line and not for use due to deterioration; and Whereas, Corpus Christi has a widely recognized need for affordable housing including Public Housing units and returning the off-line units will help address the city's growing affordable housing and homelessness needs; and Whereas, the Housing Authority of Corpus Christi has proposed a development of the La Armada II Complex at an estimated cost of approximately $5.3 million; and Whereas, the Housing Authority of Corpus Christi plans to submit an Operating Fund Financing Application through the US Department of Housing and Urban Development in the amount of $3.5 million; and Whereas, the Housing Authority of Corpus Christi plans to utilize U.S. Department of Housing and Urban Development Capital Fund Program funding in the amount of $1.3 million; and Whereas, a funding gap remains, the Housing Authority plans to submit a grant application for local housing funds; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. The City Council for the City of Corpus Christi hereby supports the proposed La Armada II Complex Revitalization Plan, see Attachment "A". Section 2. The City Council for the City of Corpus Christi hereby supports the proposed Operating Fund Financing Program application to the U.S. Department of Housing and Urban Development, see Attachment "B". Section 3. The City Council for the City of Corpus Christi hereby supports the proposed use of U.S. Department of Housing and Urban Development Capital Fund Program resources for the revitalization of the La Armada II Complex. Section 4. The City Council for the City of Corpus Christi hereby supports the Housing Authority efforts to identify and secure local grant funds to fill the identified funding gap. PASSED AND APPROVED this day of , 2015 at a regular meeting of the City Council of the City of Corpus Christi, Texas. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Nelda Martinez Mayor Corpus Christi, Texas day of , 2015 The above resolution was passed by the following vote: Nelda Martinez Rudy Garza, Jr. Chad Magill Colleen McIntyre Lillian Riojas Brian Rosas Lucy Rubio Mark Scott Carolyn Vaughn LA ARMADA II REVITALIZATION Corpus Christi Housing Authority Gary Allsup, CEO City Council Presentation December 9, 2014 Corpus Christi Housing Authority Affordable Housing Definition... it depends • According to Tax Credit Industry 60%AMI • According to HUD 30% to 80%AMI • According to realtors homes up to $150,000 • Generally, most definitions agree that housing expense should not exceed 30-35% of gross income Corpus Christi Housing Authority ,bus Chis L, f' Low Income (<80% AMI) LIHTC Limit (<60% AMI) Who is eligible for assisted housin • ? Very Low Income (<50% AMI) Extremely Low Income (<30% AMI) $29,500 / year ($14.18 / hour) $22,980 ($11.05/hour) $18,450 ($8.87/ hour) $11,100 ($5.34/ hour) $33,700 / year ($16.20 / hour) $26,280 ($12.63/hour) $21,050 ($10.12/ hour) $12,650 ($6.08/hour) $42,100 / year ($20.14 / hour) $32,820 ($15.78/hour) $26,300 ($12.64/ hour) $15,800 ($7.60/hour) Corpus Christi Housing Authority c'.csttSC4 La Armada II -Overview • Public Housing Complex • Serves low income residents <80% AMI • Most residents earn <30% AMI • Typical family earns just over $9,000 per year, or $750 per month • Pay 30% of their income as rent Corpus Christi Housing Authority a.c Chi: C� /\ Sr' La Armada II - Today • After 70 years of use, the property is in desperate need of revitalization • Currently 93 of its 400 units have been removed from service due to physical deterioration Corpus Christi Housing Authority a.c Chi: C� /\ Sr' Corpus Christi Housing Authority• 7 Corpus Christi Housing Authority a{4u,s Cfjrj ex La Armada 11 Corban Townhomes 8 Corpus Christi Housing Authority La Armada 11- Before La Armada 11- After 9 Corpus Christi Housing Authority Ch a{4u s U f • La Armada 11- Before La Armada 11- After Corpus Christi Housing Authority a{4u,s Cfjrj U f • -1r '/)g Aug La Armada 11- Before La Armada 11- After 11 Corpus Christi Housing Authority• La Armada 11- Before La Armada 11- After Corpus Christi Housing Authority a{4u s ch., • x '/)g Aug La Armada 11- Before La Armada 11- After 13 Corpus Christi Housing Authority a{4u,s Cfjrj U f -n- .11g- La n-/)g La Armada 11- Before La Armada 11- After Corpus Christi Housing Authority a.c Chi: C� La Armada 11- Before La Armada 11- After • Corpus Christi Housing Authority• La Armada 11- Before La Armada 11- After Corpus Christi Housing Authority • x -1r /)g Aug La Armada 11- Before La Armada 11- After Corpus Christi Housing Authori Corpus Christi Housing Authority 19 Corpus Christi Housing Authority c'.csttSC4 Board of Commissioners Plan • Return the 93 vacant units to service • Update internal plumbing and baths for the remaining 307 units • Update the building facades • Re -roof the complex Corpus Christi Housing Authority• COST SUMMARY Full Interior Plumbing Baths Exterior (per building) Roofing (per building) Units Per Unit Extended 93 $10,000 $930,000 307 $1,500 $460,500 307 $3,200 $982,400 71 $23,000 $1,633,000 71 $18,000 $1,278,000 Total $5,283,900 21 Corpus Christi Housing Authority• Funding Sources Operating Fund Financing Program Capital Fund Program Type A Grant Total Amount $3,500,000 $1,300,000 $250,000 $5,300,000 Corpus Christi Housing Authority Rehab vs New Construction • Rehab....$5.3 million • New Construction... $50 - 60 million - (400 units at $125,000 to $140,000 per unit) Corpus Christi Housing Authority c'.csttSC4 Community Impact • 93 New Housing Units • Improved quality of life for additional 307 families • Neighborhood Revitalization • Port Avenue Revitalization • 10 Fold Return on Community Investment Corpus Christi Housing Authori 25 AGENDA MEMORANDUM Public Hearing and First Reading Ordinance for the City Council Meeting of January 13, 2015 Second Reading for the City Council Meeting of January 20, 2015 DATE: December 18, 2014 TO: Ronald L. Olson, City Manager FROM: Dan Grimsbo, P.E., Director, Development Services Department DanG@cctexas.com (361) 826-3595 Amendment to the Unified Development Code: Enhance Enforcement of Bar, Taverns, or Pub Zoning CAPTION: Ordinance amending the Unified Development Code by revising subsections 5.2.7 to enhance enforcement of bar, taverns, or pub zoning; amending the Unified Development Code by revising subsections 5.1.4.F to correct an error in the text for restaurant accessory use; and providing for severance, penalty, publication, and effective date. PURPOSE: The purpose of this item is to clarify the specific standards of a Bar, Tavern, or Pub. BACKGROUND AND FINDINGS: The proposed UDC amendment will assist with defining establishments engaged in the retail sale of alcoholic beverages for on -premise consumption. Clarifying the specific standard will distinguish the type of establishment and provide improved enforcement of the Zoning Ordinance. ALTERNATIVES: Denial or alteration of the proposed UDC amendments. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: The proposed text amendments conform to City policy and State law. DEPARTMENTAL CLEARANCES: Planning Commission and Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital Z Not applicable Fiscal Year: 2014- 2015 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: Planning Commission and staff recommend approval of the proposed UDC text amendments. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance Amending the Unified Development Code by revising subsections 5.2.7 to enhance enforcement of bar, taverns, or pub zoning; amending the Unified Development Code by revising subsections 5.1.4.F to correct an error in the text for restaurant accessory use; and providing for severance, penalty, publication, and effective date. WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding this amendment of the City of Corpus Christi, Texas ("City") Unified Development Code ("UDC"); WHEREAS, with proper notice to the public, public hearings were held on Wednesday, November 19, 2014, during a meeting of the Planning Commission, and on Tuesday, January 13, 2015, 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 to the UDC would best serve the public's health, necessity, and convenience and the general welfare of the City and its citizens. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That UDC subsection 5.2.7. Bar, Tavern, or Pub is amended by revising the text to read as follows: 5.2.7. Bar, Tavern, or Pub A bar, tavern or pub shall be permitted in accordance with the use tables in Article 4 provided that the bar, tavern or pub shall not be located any closer than 1,000 feet from a place of worship, or elementary, middle or high school and 300 feet from a Day Care use. To ensure compliance with this subsection, any establishment engaged in the retail sale of alcoholic beverages for on -premise consumption shall provide upon request by a City Code Enforcement Official verified copies of either, I) the previous quarterly or the previous three monthly sales tax reports and the gross receipts tax reports for the same periods, if the establishment pays the gross receipt tax or 2) the previous three months alcohol sales and sales tax information and other information or documents sufficient to determine the percentage of alcohol sales, if the establishment does not pay the gross receipts tax. Failure to provide the documentation requested or accurately maintain required records is prima facie evidence that the establishment is a bar, tavern or pub. SECTION 2. That UDC subsection 5.1.4.F is amended by revising the text to read as follows: 5.1.4.F. Restaurant Characteristics: Establishments tha Principal Uses Catering establishment, small- scale Fast-food restaurant Outdoor vendors with permanent facility Pizza delivery establishment Restaurant Yogurt or ice cream shop t prepare and sell food for on- or o Accessory Uses Bap Decks and patios for outdoor seating Drive-through or drive-in facility Off-street customer and employee parking Satellite dish antenna under 3.2 feet* Valet parking facility ff-premise consumption. Uses Not Included Bar, tavern or club (see Indoor Recreation) Catering establishment, large-scale (se Light Industrial Service) Membership club or lodge (see Indoor Recreation) SECTION 3. If for any reason any section, paragraph, subdivision, sentence, clause, phrase, word, or provision of this Ordinance shall be held to be invalid or unconstitutional by final judgment of a court of competent jurisdiction, such judgment shall not affect any other section, paragraph, subdivision, sentence, clause, phrase, word, or provision of this Ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, sentence, clause, phrase, word, or provision of this Ordinance be given full force and effect for its purpose. The City Council hereby declares that it would have passed this Ordinance, and each section, paragraph, subdivision, sentence, clause, phrase, word, or provision thereof, irrespective of the fact that any one or more sections, paragraphs, subdivisions, sentences, clauses, phrases, words, or provisions be declared invalid or unconstitutional. SECTION 4. 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 5. Publication shall be made in the City's official publication as required by the City's Charter. SECTION 6. This ordinance is effective immediately upon passage. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM Public Hearing and First Reading for the City Council Meeting of January 13, 2015 Second Reading for the City Council Meeting of January 20, 2015 DATE: December 23, 2014 TO: Ronald L. Olson, City Manager FROM: Dan M. Grimsbo, P.E., Director, Development Services Department DanG@cctexas.com (361) 826-3595 Rezoning from Manufactured Home and Industrial To Industrial with a Special Permit For Isaias Franco Property Addresses: 7585 Leopard Street and 1326 Rhew Road CAPTION: Case No. 1214-02 Isaias Franco: A change of zoning from "RMH" Manufactured Home District and "IL" Light Industrial District to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction, not resulting in a change to the Future Land Use Plan. The property is described as being a 15.854 -acre tract of land out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018 and a 20.00 -acre tract of land out of a 202.16 -acre tract out of Section 8, Range V, of the H.P.L. Kinney Sectionalized Lands, located on the south side of Leopard Street between Rhew Road and Cathead Road. PURPOSE: The purpose of this item is rezone the property to allow extraction of sand material. RECOMMENDATION: Planning Commission and Staff Recommendation (December 17, 2014): Approval of the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction subject to the following conditions: 1. Use Regulation: The only use allowed other than those allowed by right in the "IL" Light Industrial District is Resource Extraction, which is a use that extracts sand, gravel, and dirt from land including stockpiling of sand, gravel, or dirt. 2. TCEQ Dust Control: Control dust in accordance with the TCEQ requirements. 3. Access: Vehicular access will be limited to Leopard Street only, which is an arterial street. 4. Hours of Operation: The hours of operation shall be limited to the hours between 7:30 AM and 6:00 PM. 5. Time Limit: The Special Permit will expire in one year from the date of the approved ordinance unless an excavation permit application has been applied for. After the excavation permit has been applied for, this Special Permit will terminate within five years or upon termination of the excavation permit BACKGROUND AND FINDINGS: As detailed in the attached report, the applicant is proposing a resource extraction business on a 35.854 -acre of land. All material removed is replaced with dirt fill material. This resource extraction business will serve construction related to the Eagle Ford Shale activities and will last no longer than five years at this site. The proposed use is appropriate at this location in the "IL" Light Industrial District. The use complements and is compatible with the surrounding uses and zoning patterns. ALTERNATIVES: 1. Modify the conditions of the Special Permit; or 2. Deny the request. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The subject property is located within the boundaries of the Port/Airport/Violet Area Development Plan and is consistent with the adopted Future Land Use Plan, which slates the property for a light industrial use. The rezoning is consistent with the Comprehensive Plan. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal and Planning Commission FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital Z Not applicable Fiscal Year: 2014- 2015 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: Presentation - Aerial Map Ordinance Planning Commission Final Report Ordinance amending the Unified Development Code ("UDC"), upon application by Isaias Franco ("Owner"), by changing the UDC Zoning Map in reference to a 15.854 -acre tract of land out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018 and a 20.00 -acre tract of land out of a 202.16 -acre tract out of Section 8, Range V, of the H.P.L. Kinney Sectionalized Lands, from the "RMH" Manufactured Home District and "IL" Light Industrial District to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding the application of Isaias Franco ("Owner"), for an amendment to the City of Corpus Christi's Unified Development Code ("UDC") and corresponding UDC Zoning Map; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, December 17, 2014, during a meeting of the Planning Commission, and on Tuesday, January 13, 2015, 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. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Upon application by Isaias Franco ("Owner"), the Unified Development Code ("UDC") of the City of Corpus Christi, Texas ("City"), is amended by changing the zoning on a 15.854 -acre tract of land out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018 and a 20.00 -acre tract of land out of a 202.16 - acre tract out of Section 8, Range V, of the H.P.L. Kinney Sectionalized Lands, located on the south side of Leopard Street between Rhew Road and Cathead Road (the "Property"), from the "RMH" Manufactured Home District and "IL" Light Industrial District to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction (Zoning Map No. 055045), as shown in Exhibits "A-1" and "A-2", and Exhibits "B-1" and "B-2" and Exhibit "C". Exhibits "A-1" and "A-2", which are a metes and bounds descriptions of the Property, Exhibits "B-1" and "B-2", which are maps to accompany the metes and bounds, and Exhibit "C", which is a Site Plan are attached to and incorporated in this ordinance by reference as if fully set out herein in their entireties. SECTION 2. The Special Permit granted in Section 1 of this ordinance is subject to the Owner meeting the requirements of Exhibit C and the following conditions: 1. Use Regulation: The only use allowed other than those allowed by right in the "IL" Light Industrial District is Resource Extraction, which is a use that extracts sand, gravel, and dirt from land including stockpiling of sand, gravel, or dirt. 2. TCEQ Dust Control: Control dust in accordance with the TCEQ requirements. 3. Access: Vehicular access will be limited to Leopard Street only which is an arterial street. 4. Hours of Operation: The hours of operation shall be limited to the hours between 7:30 AM and 6:00 PM. 5. Time Limit: The Special Permit will expire in one year from the date of the approved ordinance unless an excavation permit application has been applied for. After the excavation permit has been applied for, this Special Permit will terminate within five years or upon termination of the excavation permit. SECTION 3. The official UDC Zoning Map of the City is amended to reflect changes made to the UDC by Section 1 of this ordinance. SECTION 4. 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 5. To the extent this amendment to the UDC represents a deviation from the City's Comprehensive Plan, the Comprehensive Plan is amended to conform to the UDC, as it is amended by this ordinance. SECTION 6. All ordinances or parts of ordinances specifically pertaining to the zoning of the Property and that are in conflict with this ordinance are hereby expressly repealed. SECTION 7. Publication shall be made in the City's official publication as required by the City's Charter. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 20 , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas Page 2 of 3 The foregoing ordinance was read for the second time and passed finally on this the day of , 20 , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED this the day of , 20 ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor 1214-02 Special Permit Ordinance, Isais Franco Page 3 of 3 STATE OF TEXAS COUNTY OF NUECES TRACT II Field Notes of 15.854 acres being out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018. Said 15.854 acre tract also being out of the Kirchberg tract described in a deed recorded in Document No. 900502, Deed Records Nueces County, Texas. Said 15.854 acre tract being more particularly described as follows: BEGINNING at 5/8" iron rod set in the west line of the Franco 20.0 acre tract, for the southeast corner of Tract I being a 16.000 acre tract surveyed by Brister Surveying this day, and for the northeast corner of Tract II, and for the northeast corner of this survey, from WHENCE a 5/8" iron rod found in the south right of way of Leopard Street, for the northeast corner of the Tract 1, Eleanor Tracts, as shown on a map recorded in Volume 34, Page 36, Map Records Nueces County, Texas bears, North 01°37'54" West, a distance of 1,191.80 feet. THENCE with the west line of the said 20.0 acre tract, South 0I°37'54" East, a distance of 831.68 feet to a 5/8" iron rod set in the west line of the said 20.0 acre tract, and for the southeast corner of this survey, from WHENCE a 2" iron pipe found bears, South 01°37'54" East, a distance of I889.44 feet. THENCE South 88°32'44" West, a distance of 1,33438 feet to a 5/8" iron rod set in the east right of way of Rhew Road, and for the lower southwest comer of this survey. THENCE with the cast right of way of Rhew Road, North 01°27'16" West, a distance of 50.00 feet to a 5/8" iron rod set in the east right of way of Rhew Road, for the southwest corner of a 80' Detention Basin as described in a deed recorded in Doc. No. 2008030157, Deed Records Nueces County, Texas, and for the upper southwest comer of this survey, from WHENCE a 5/8" iron rod found in the east right of way of Rhew Road, for the northwest comer of the said Detention Basin bears, North 01°27'16" West, a distance of 80.00 feet. THENCE with the common line of the said Detention Basin and our tract, North 88°32'44" East, a distance of 535.00 feet to a 5/8" iron rod set for an inside comer of this survey. THENCE with the common line of the said Detention Basin and our tract, North 01°27'16" West, a distance of 781.72 feet to a 5/8" iron rod set for the southwest comer of Tract I, for the northwest corner of Tract II, and for the northwest corner of this survey. THENCE with the south line of the said Tract I, North 88°32'44" East, a distance of 796.93 feet to the POINT of BEGINNING of this survey, and containing 15.854 acres of land, more or less. Notes: 1.) Bearings are based on Global Positioning System NAD 83 (93) 4205 Datum. 2.) A Map of equal date accompanies this Metes and Bounds description. I, Ronald E. Brister do hereby certify that this survey of the property legally described herein was made on the ground this day November 5.2013 and is correct to the best of my knowledge and belief. "naact&. . Ronald E. Brister, RPLS No. 5407 Date: November 7, 2013. Job No. 131377 Exhibit A-1 STATE OF TEXAS COUNTY OF NUECES Field Notes of a 20.000 acre tract out of a 202.16 acre tract described in a deed recorded in Document No. 2002022657, Deed Records Nueces County, Texas. Said 20.000 acres also being out of Section 8, Range V, of the H. P. L. Kinney Sectionalized Lands Nueces County, Texas. Said 20.000 acre tract being more particularly described as follows: BEGINNING at 5/8" iron rod found in the south right of way of Leopard Street for the northeast corner of Tract 1 of the Eleanor Tract Subdivision as shown on a map recorded in Volume 34, Page 36, Map Records Nueces County, Texas, for the northwest corner of the said 202.16 acre tract, and for the northwest corner of this survey. THENCE South 01°37'54" East, a distance of 3912.92 feet to a 2" iron pipe found in the north right of way of Sedwick Road for the southeast comer of a 30.00 acre tract as described in a deed recorded in Volume 1757, Page 761, Deed Records Nueces County, Texas, and for the southwest comer of this survey. THENCE with the north right of way of Sedwick Road, North 89°00'38" East, a distance of 225.7I to a 5/8" iron rod set in the north line of the Sedwick Road right of way, from WHENCE a 5/8" iron rod found in the north right of way of Sedwick Road for the southeast corner of the said 202.16 acre tract bears North 89°00'38" East, at a distance of 2431.22 feet. THENCE North 01°37'54" West, a distance of 3807.37 feet to a 5/8" iron rod set in the south right of way of Leopard Street for the northeast comer of this survey, from WHENCE a 5/8" iron rod found in the south right of way of Leopard Street for the Northeast corner of the said 202.16 acre tract bears South 66°02'34" East, a distance of 950.82 feet. THENCE with the south right of way of Leopard Street, North 66°02'34" West, a distance of 250.24 feet to the POINT of BEGINNING of this survey, and containing 20.000 acres of land, more or less. Notes: 1.) Bearings are based on Global Positioning System NAD 83 (93) 4205 Datum. 2.) A Map of equal date accompanies this Metes and Bounds description. 1, Ronald E. Brister do hereby certify that this survey of the property legally described herein was made on the ground this day March 21.2012 and is correct to the best of my knowledge and belief. onaa2�. Ronald E. Brister, RPLS No, 5407 Date: March 27, 2012. Job No. 12248 Exhibit A-2 1,-8 1.!q!gx3 SCALE 1" = 200' DEGRADED PLOTTING ODE THIS PROPERTY NY HD 1,1,1, (11rvl.r M1I00,1 48546491450 E D_ M1141INI y ERN IR 1985 AND IIS ® ISNOT LOCATED IN A DESIGNATEDADD. FT ODD ZONE Ioo • SURVEY OF TRACT 1 BEING 16.000 ACRES AND TRACT 11 BEING 15.854 ACRES, BOTH BEING OUT OF THE ANTHONY C. PAGE SURVEY 5.91 AND THE A. M. FRENCH SURVEY 312 ABSTRACT 1018. SAID 15.854 ACRE TRACT ALSO BEING OUT OF THE KIRCHBERG TRACT DESCRIBED IN A DEED RECORDED IN DOCUMENT NO. 900502, DEED RECORDS NUECES COUNTY, TEXAS. • • • THIS SURVEY DONT WITHOUT TIIE BENT TT OF A TITLE COMMITMENT. 1114331 1 ( VOL. 34, PAGE'. NCL ELEANOR !RAC AIRNCT 111 LI IA VOI 43 PA, 115, AIRNCT FRAC 5B Fl PANOR TRACTS 'OI '. I') MR.NCT TRACT 4A ELEANOR IRA I VOL01.45, PAGE R ACT FRAC! JA PI FAVOR TRACTS VOL 45, PAOP 160 FRAC! 5A ELEANOR TRACTS OL.0 PAGE 1.A9 0 O 0 FRANCO 20 ACRE PRAIA' P.O.B. NOI537'54"W 751.05 TRACT I 16-000 ACRES 696,947 S.F. 911 37'54"E 831.68' (MEAS) TRACT II 15.854 ACRES 690,594 SJ'. N01327'16'W 781.72' FAS) SU DOC NO.00S030, (IIRN C:T) 1,1 NO1527'16"W 50.011' (MFAS) RHEW ROAD 611 RIGHT OF WAY = FOUND 5/8" IRON ROD = SET 5/8" IRON ROD 1013 NO. 13130 W 74, 5/5 Z 09 0 NOTES: 1.) TOTAL SLRVFYPD AREA IS 15.854 ACRES. I)SENSURED BEARINGS ARL BASED ON GLOBAL POSITIONING SYSTEM NAD 83 (93) 4205 DATI1M. 3.) A METES AND BOUNDS DESCRIPTION OF E011AI_ DATE ACC,OMPANIFS THIS SURVEY. Brister Surveying FOUND 2" IROS PIYI BEARS S01537.30E 1989 REM,TNDER OF KIRCHBERG TRACT DOC. NO. 900502 D.R. N.C.T. HIS SEIRN EY DOES AM IND 3110 HE RFSFARCIE GATION, OR ALL US, D5SE EN I V IUC TIONS OkLL SERVIDEM HI IN WAYS. OR U IILI 1 ILS ON 1 HIS PROPEIt'IY. TIIAT TIIIS SIMS, OF THE TY LEGALLY DESCRIBED HEREIN WASNLIDE ON HE OROUNDIHIS DAY NO, LAMER 3,015 AND IS CORRECT TO THE :ST OF 1511115111KNOWLED E ANTI BELIEF. RONNITD BRIElER RPI 5-11,7 NA!, NOVEMBER 7.2013 LOT 2 LOT5 RHEW VO_ I INDUS 67, PAGE O ['RIM. 174 1-1 O LOT 12 LOT 13 LOT 14 ti O ti O LOT 17 FL FAV RTRAITS .1. AE 11S5 Fl FAVOR TR ACTS `OT 43, n1.lt.P4r Ia_ LIPO WORTH! L2261,P.8 1,1 NO1527'16"W 50.011' (MFAS) RHEW ROAD 611 RIGHT OF WAY = FOUND 5/8" IRON ROD = SET 5/8" IRON ROD 1013 NO. 13130 W 74, 5/5 Z 09 0 NOTES: 1.) TOTAL SLRVFYPD AREA IS 15.854 ACRES. I)SENSURED BEARINGS ARL BASED ON GLOBAL POSITIONING SYSTEM NAD 83 (93) 4205 DATI1M. 3.) A METES AND BOUNDS DESCRIPTION OF E011AI_ DATE ACC,OMPANIFS THIS SURVEY. Brister Surveying FOUND 2" IROS PIYI BEARS S01537.30E 1989 REM,TNDER OF KIRCHBERG TRACT DOC. NO. 900502 D.R. N.C.T. HIS SEIRN EY DOES AM IND 3110 HE RFSFARCIE GATION, OR ALL US, D5SE EN I V IUC TIONS OkLL SERVIDEM HI IN WAYS. OR U IILI 1 ILS ON 1 HIS PROPEIt'IY. TIIAT TIIIS SIMS, OF THE TY LEGALLY DESCRIBED HEREIN WASNLIDE ON HE OROUNDIHIS DAY NO, LAMER 3,015 AND IS CORRECT TO THE :ST OF 1511115111KNOWLED E ANTI BELIEF. RONNITD BRIElER RPI 5-11,7 NA!, NOVEMBER 7.2013 Z 8 }!q!4x3 SCALE 1" = 250' 2 O SURVEY OF A 20.000 ACRE TRACT OUT OF A 202.16 ACRE TRACT DESCRIBED IN A DEED RECORDED IN DOCUMENT NO. 2002022657, DEED RECORDS NUECES COUNTY, TEXAS. SAID 20.000 ACRES ALSO BEING OUT OF SECTION 8, RANGE V, OF THE H. P. L. KINNEY SECTIONALIZED LANDS NUECES COUNTY, TEXAS. • C TRACT 1 FI.E.ANOR TRACT SURD VOL. 34 PG. 36 Dv GRAPHIC PLOTTING ONLY, THE Roea IS I DI ATED WITHIN ZONE AS DEFINED BM TILE FTDF2AI 3 GNIHA 4854D1L5C D D_ NyHT. IS, 1985 AND 0IS DISNOT LOCATED INADESI9001030ETAR FL 00272.2 o9 NO BEM ro,, SUAVE ES. i ASURFD BPARI\C'S ANT/BASED ON OI 02A2 1904205 DATUM. POSITIONING I .1 SMEI ES AND BOU'\LSIIL33LSC'RIPHON OE EQUAL DA EL ACCOMPANIES THIS SLUM,.. ▪ = ROUND 2" IRON PIPE O = SET 518" IRON ROD ▪ = FOUND 5/8" IRON ROD 55.57 ACRES VOL 2244, PAGE 930 REMAINDER OF 202.18 ACRES DOC. NO. 2002022657 5401°37'54'0' 38117.37' (MEAS 20.000 ACRES 871,211 S.F. 001°37'54"E 3912.92' (MEAS) S01207'37"E (DEED) 32.36 ACRES VOL. 2173. PAGE 236 SCHEDULE 'IV ITEMS V) VOM NIL DI. EMIL 118 BEAM, I EL) VOLUME 212, PAGE 102 BLANKEI 5VOLUME h) VOLE TLE 206, PADS Lk BLANKET .)VOLUME 95E, PAGE 366 BLANKET VN)WM,: 23', PAGED DOES NOT APPLY OV OO) VOLUME 33] PALL15 DOES PPLY )) S BLL E 01 ) C PLV ) V O NOT 0301L 021 OO) VOLUME 0)c )LOLL ME 709,. 10) 00 0) ) 00 ) O LUME 323, PAGE 31,8 BLANKET n) MOLL ALL 264, PAOL. 22 BLANKET Vo=3100 312 PAGE 514 BLANKET 1 913' PAGE 39' BLANKET o) ) VOLUME 21 )VOLc'0631 PAGE . DOES NOT APPLY P) c W) VOLE r EL PAGE . DOES NOT APPLY wv VOLLT1E OS PAGE 311 DOES NOT APPLY VOLUME45 BLANKET )NOEL VIE HD, Q 1)01 LG. INK PM. 324 DONN NOI APPI ) VOLUME,. PAGE H BLANKET YT) LOLL AIS 1116 PAGE 15 DOES NOT APPLA 1) A 01 DAIL 197A PAGE 3 H k J VOLUME 737. PAGE ID BLANKET Z.2) VOLUME L) VOLUME_l PAC 16 DOES NOP AIM, -), OLUNE_2 .105 BLANKET A)DOC NO 31103021845 BLANKET JOB NO. 12224E 30.00 ACRES VOL. 1757, PAGE 761 Brister Surveying ell I BU YLIB ISMAS 1 RANCO GF NO. 16701640 3T TO ISAIAS FRANCO AND FIRST AMERICAN TITLE. DE N6) I 671116.CBT THE ENDERSIONFED DOTS HEREBY 2 Mal, HA IFI HIS SURE, WAS l'H. NINDE. ON IHE GROUND Or TI IS PROPERTY LEGALLY DESCRIBED UTREON AND IS CORRECT: AND THERE ARE NO DISCREPANCIES, CONFI.TCPS,TIIAT CONFLICTS, VISIBLE ENGROAGUMENTS, OVERI ...NG OF IMPROVE, TENTS, EASEMENTS OR .5PPARENT EXCEPT ns RIGHTS-OF,.SHOW, HEREON, AND SAID miwean finsACCESS 0 AND FROM A DUNCAN ED ROAD, A, .ENCEPT AS SHOWN HEREON f?0Yfaa% e /u¢C.w- ,n 11, MARCH 2) 2)12 [rY ' .=,1s. -n .-.4 IMMIICEMAIIIIII ©I ri' �L�f17ft5i-:� 1L _ i1 11 Ff iRSH1 RE=EI RliEWINE115TR[,►L =91 tITf Q(xY RA ij SCALE 1' ..20t7 Tract I — Metes and Bounds N 66 degrees 02' 34" E 250.24' S 01 degrees 37' 54" E 3912.92' 89 degrees 0' 38" E 225,71' 01 degrees 37' 54" W 3807.37' Trac 11—Metes and Bounds LI N 88 degrees 32' 44" E LII S 01 degrees 37' 54" E LIII 888 degrees 32' 44" W LIV NOl degrees 27' 16" W LV N88 degrees 32' 44" E LVI NO1 degrees 27' 16" W ATSMAI1SpIaRaO R1.Y.TICDR00[T MECUM Oa1IMI= g uenrm arTlelRinuuMSZVC, wlwlenrt uulasGlarTtua YTYIeUIC LL77,a_FI.Y IL TS 7JO DR $E WITLOGIiDAA deR0alfOtl TOArfOm72sS 796.93' 831.68' 1334.38' 49.96' 535.00' AAtt;; 781.72'^�CL a 4�� �04�F SURVEY OF TRACT I DENO 16100 ACRES AND TRAGI II BEING 1SAS4 ACRES, 130Th BEING OUT OFTIM ANTHONY C. PAGE SURVEY S91 AND THE A. M. FRENCH SURVEY 312, ADSTRACP HIM SAID HAS ACRE TRACT ALSO DEMO OUT OF THE IORCHBERO TRACEDFSCRMED IN A DEED RECORDED !N DOCUMENT NO. 900502, DEED RECORDS NUECFS COUNTY,1ECAS.. Entry -) b Ory TUB SWIYGTRGrIRTATIPT iRSECl6ROrATTILE®LLIDSMKT. Industrial Development 1.4 Trees 37' 54" W 3807.37' " Tract 1- LI 1 SP Proposed o Fence Existing LI/SP FRANCA 20ACRE MALT Sand Excavation Area ,.oa.3'01 degrees 37' 54" )ast 391292' wrr,new'aa 1,1011734V 75.19S TRA[Y1 veLxrArm)1 Field House JIZAMOILTRACTS rc-. 17ACTM E.MNORTIIACIT TRACER MME ACRES 694947 S.F. 50177SPE, 2 iM ) Tract II • - LI/ SP Proposed Existing R -MH rRACrn ISAS4 ACRES Existing R MH T3EI'TTII6'W 731.71 (MEM) Brister Surveying srposadol..a. Pa MIMIC 1.4 1laCN4TdL)RO TI LI Win 6-1V S uir{MEAS) RHEW ROAD e RlaliOP RAT Vacant a FOUND Sr MON ROD SLrrS,C 1RON RCD loam. u 9rl .J Tract III - 1.1/SP Proposed See P1aI. . REMAINDER OF ICIRCNBERO TRACE DOC NMI= D.RNrGT. Vacant tri CJ Caliche Road L !2. Vacant NUTTER 14117MLSVRY6YED AREA IS 11.1f71ACRET. _)ME'e, S= PGWMGT ARG$411:3313101.02V. TT1tr710N1 ND SYSTEM NAD r7 0:15 MOAT= 11 A Mt= AND POVN=OS3CAlFddA rO D EDIML ATRACCOLD IRCUI1HRSURVEY, Li TICS =WY Pm3 NDTOR"mDTI OVA LSQvfTUDIM 6M1STIV:2/1TRra1RDP VIM WOJSIVAIT FOSllttME 71: iRO WHf1 R MLITTV r do I mum ORSFr TINTTIOTT RVETP/TICTIMMTT Im.VLYaC[1RoA IY®1IASYAGIIdlr TICE VXOURITIIRaAT XXV MDR 4R11RYTa71 TNPw1aO®Nme11O7. Kianaa9e.aidzi ,0. w6RIR70 VJL 110.317 T TT1I Z.... EITAIISTTAl.13 RliEWINE115TR[,►L �"��� vCL 67, rADLC 174 IELTANOTITIArtl 1•All'O „„. 1+ Fa 1Q� rL��. Ras+ M.R ECT. p /17II 0 M • 14� rQ. .-1 .1 g I (� i q7� M M °'�'�' 11117117.11117117."` Commercial Industrial r LI Win 6-1V S uir{MEAS) RHEW ROAD e RlaliOP RAT Vacant a FOUND Sr MON ROD SLrrS,C 1RON RCD loam. u 9rl .J Tract III - 1.1/SP Proposed See P1aI. . REMAINDER OF ICIRCNBERO TRACE DOC NMI= D.RNrGT. Vacant tri CJ Caliche Road L !2. Vacant NUTTER 14117MLSVRY6YED AREA IS 11.1f71ACRET. _)ME'e, S= PGWMGT ARG$411:3313101.02V. TT1tr710N1 ND SYSTEM NAD r7 0:15 MOAT= 11 A Mt= AND POVN=OS3CAlFddA rO D EDIML ATRACCOLD IRCUI1HRSURVEY, Li TICS =WY Pm3 NDTOR"mDTI OVA LSQvfTUDIM 6M1STIV:2/1TRra1RDP VIM WOJSIVAIT FOSllttME 71: iRO WHf1 R MLITTV r do I mum ORSFr TINTTIOTT RVETP/TICTIMMTT Im.VLYaC[1RoA IY®1IASYAGIIdlr TICE VXOURITIIRaAT XXV MDR 4R11RYTa71 TNPw1aO®Nme11O7. Kianaa9e.aidzi ,0. w6RIR70 VJL 110.317 T TT1I Aerial Overview N Aerial N PLANNING COMMISSION FINAL REPORT Case No. 1214-02 HTE No. 14-10000046 Planning Commission Hearing Date: December 17, 2014 Applicant & Legal Description Applicant/Owner: Isaias Franco Legal Description/Location: Being a 15.854 -acre tract of land out of the Anthony C. Page Survey 591 and the A.M. French Survey 312, Abstract 1018 and a 20.00 -acre tract of land out of a 202.16 -acre tract out of Section 8, Range V, of the H.P.L. Kinney Sectionalized Lands, located on the south side of Leopard Street between Rhew Road and Cathead Road. Zoning Request From: "RMH" Manufactured Home District and "IL" Light Industrial District To: "IL/SP" Light Industrial District with a Special Permit for Resource Extraction Area: 35.854 acres Purpose of Request: To allow extraction of sand material. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site "RMH" Manufactured Home District and "IL" Light Industrial District Vacant Light Industrial North "RMH" Manufactured Home District Vacant Light Industrial South "IL" Light Industrial District and "RMH" Manufactured Home District Vacant Light Industrial East "IL" Light Industrial District Light Industrial and Vacant Light Industrial West "IL" Light Industrial District Vacant Light Industrial ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Port/Airport/Violet Area Development Plan and is planned for light industrial uses. The proposed rezoning to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction is consistent with the adopted Future Land Use Plan and the Port/Airport/Violet Area Development Plan. Map No.: 055045 Zoning Violations: None Planning Commission Final Report Page 2 Transportation Transportation and Circulation: Access to the two properties is a 50 -foot wide road on the 15.854 -acre tract of land fronting Rhew Road, which is designated as a C3 Primary Collector street by the Urban Transportation Plan. The north boundary of the 20 -acre tract of land has 275 feet of frontage on Leopard, which is designated as an A2 Secondary Arterial Divided road, and the south boundary has 230 feet of frontage on Sedwick Road, which is designated as an Al Minor Arterial Undivided road. Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume (2011) Rhew Road C3 Primary Collector 75' ROW 50' paved 45' ROW 21' paved Not Applicable Leopard Street A2 Secondary Arterial Divided 100' ROW 54' Paved 150' ROW 92' Paved Not Applicable Sedwick Road Al Minor Arterial Undivided 95' ROW 64' paved 55' ROW 20' paved Not Applicable Staff Summary: Requested Zoning: The applicant is requesting a rezoning from the "RMH" Manufactured Home District and "IL" Light Industrial District to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction. The combined rezoning request is 35.854 -acres. 20 -acres is currently zoned "RMH" Manufactured Home District and 15.854 acres is zoned "IL" Light Industrial District. Development Plan: The applicant is proposing to continue his Resource Extraction Business by extending the area to excavate from his current 20 -acre tract onto the additional 15.854 -acre tract of land. All material removed is replaced with returned dirt fill material. This Resource Extraction will serve the Eagle Ford Development. Currently there are six employees and will remain the same. Existing Land Uses & Zoning: North, south and west of the subject property is vacant land zoned "IL" Light Industrial District. Immediately to the west is a drainage basin. The property east of the subject property is also zoned "IL" Light Industrial and is a light industrial subdivision. AICUZ: The subject property is not located in one of the Navy's Air Installation Compatibility Use Zones (AICUZ). Comprehensive Plan & Area Development Plan Consistency: The subject property is located within the boundaries of the Port/Airport/Violet Area Development Plan (ADP). The proposed rezoning to the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction is consistent with the Port/Airport/Violet ADP and the adopted Future Land Use Plan's designation of the property as light industrial. Plat Status: The subject property is not platted. Planning Commission Final Report Page 3 Review Criteria: Staff determined that the Special Permit meets the review criteria. In determining to approve with conditions, the following criteria was considered. 1. The use is consistent with the Comprehensive Plan. 2. The use complements and is compatible with the surrounding uses and community facilities. 3. The impact of the use on public infrastructure can be minimized without negatively impacting existing uses in the area and in the City. 4. The use contributes to, enhances or promotes the welfare of adjacent properties and the surrounding area. 5. The use does not affect adjacent and neighboring uses permitted. 6. The use does conform in all respect to regulations and standards in this Unified Development Code. 7. The development provides ample off-site parking and loading facilities. Department Comments: • Resource Extraction is a heavy industrial use that the Unified Development Code allows in the "IL" Light Industrial District by Special Permit. A Special Permit is subject to limitations. • The proposed use is appropriate at this location in the "IL" Light Industrial District. • Resource Extraction is a temporary use until the property can no longer be excavated. • Roadway access would be limited to Leopard Street only, which is considered to be an arterial street. • An Excavation permit was approved by the Planning Commission in November with only one comment from residents concerning the dust. • The applicant must comply with the excavation permit by allowing monthly inspections. • The applicant's business will be meeting a demand from construction serving the Eagle Ford development. Planning Commission and Staff Recommendation: Approval of the "IL/SP" Light Industrial District with a Special Permit for Resource Extraction subject to conditions. Special Permit Conditions: 1. Use Regulation: The only use allowed other than those allowed by right in the "IL" Light Industrial District is Resource Extraction, which is a use that extracts sand, gravel, and dirt from land including stockpiling of sand, gravel, or dirt. 2. TCEQ Dust Control: Control dust in accordance with the TCEQ requirements. Planning Commission Final Report Page 4 3. Access: Vehicular access will be limited to Leopard Street only, which is an arterial street. 4. Hours of Operation: The hours of operation shall be limited to the hours between 7:30 AM and 6:00 PM. 5. Time Limit: The Special Permit will expire in one year from the date of the approved ordinance unless an excavation permit application has been applied for. After the excavation permit has been applied for, this Special Permit will terminate within five years or upon termination of the excavation permit. Public Notification Number of Notices Mailed — 20 within 200 -foot notification area 2 outside notification area As of December 23, 2014: In Favor — 5 inside notification area — 0 outside notification area In Opposition — 5 inside notification area — 0 outside notification area Totaling 5.662% of the land within the 200 -foot notification area in opposition. Attachments: 1. Location Map with Notice Area 2. Site Plan K:\DevelopmentSvcs\SHARED\ZONING CASES\2014\1214-02 Isaias Franco\Council Documents\1214-02 Isaias Franco -Report for CC.docx IL 800 Feet 80 SUBJECT PROPERTY SEDWICK RD 20 CATHEAD_RD N M IL O Q ti ti ROUGHNECK_RD,-- Dat0Cre�: 1271/2014 Prepared By: jeremym Department of Development Services CASE: 1214-02 Zoning & Notice Area 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 CR -2 CG -1 CG -2 CI CBD CR -3 FR H BP Resort Commercial Resort Commercial General Commercial General Commercial Intensive Commercial Downtown Commercial Resort Commercial Farm Rural Historic Overlay 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 `?G'90 �d SUBJECT ' PROPERTY LOCATION MAP AGNES City of Corpus Christi SCALE I' - 2W Tract I — Metes and Bounds 11 N 66 degrees 02' 34" E 250.24' L11 S 01 degrees 37' 54" E 3912.92' LIIi N 89 degrees 0' 38" E 225,71' LW N 01 degrees 37' 54" W 3807.37' SURVEY OF TRACT 1BEIM mono ACRES AND TRACT RBEING 15954ACRES, BOTH BEING OUT OF7HEANTHONY C.PAGE SURVEYS91 AND THE A. M. FRENCH SURVEY 3I2,ABSIRACF1018 SAID 15.854 ACRE TRACT ALSO BEIN0OUT OFTHE RIRCHBERO TRACT DESCRIBED IN A DEED RECORDED 1N DOCUMENT NO. 'ARSW. DEED RENRDS NUECFS COUNTY, TEXAS.. ON Tract 11 — Metes and Bounds Entry — LI N 88 degrees 32' 44" E 796.93'etzu,,,;,c„ LII S 01 degrees 37' 54" E 831.68' ` Y01 - LW 888 degrees 32' 44" W 1334.38' LIV NO1 degrees 27' 16" W 49.96' LV N88 degrees 32' 44" E 535.00' TA VnitLVI NOl degrees 27' 16" W 781.72' ' . dry r''m e 0 1PANnRTMCIfexuo. ZIP I 17 o. e m =e y1 • tl.1ctl 1� YltiTM 111 "ANRRT?ACRO YOLgM®IO • f16" • C� TEACrM we • u, rest 43 • TLLT LI WORTEAC7T .AL MOE IA {gm11111MIL n DLN{T. TIEI n111YGT PgMg kf N IllrriTl R' ECIGi OFA liRi®IICISI[L Industrial Development Tract 1- LI ./ SP Proposed Fence Existing LISP NOT,N W Ilele •tp) Nul•AS4'W ?SLOT Field House EYaAn eennnEo 6v TnDnown ff,G6RI6.R,.r>pIR C Ale6rm aYTlelRti01tne6®n li W IOpelr YA,ALOOIMIT?A1EL Y1YIeU1C nA17 1UI.Y IL TS pa Det EIEieOrIDOt1mXA0eRER1Tntl leAen®ESS • TRACTI 16410 ACRES 076.947 SP. Brisker Surveying or ▪ matte t.4 N n 1 degrees 37' 54" W 3807.37' FRANCO Sand Excavation Area 1 N MAZY „0.,.3'01 degrees 37' 54” Vast 391292' ,_� J Kum rhino Pint • SOSTirt 21,Er (MCAT) Tract 11 -LII SP Proposed Existing R -MH TRAcrn ISs51 ACRES MOW S.F. Existing R -MH Lea NBN2TI6'1V MITT (METES) Pert9malenmr DOGI10.7EWnn10Elt=.1 LI N717T16'W soar (MEAS). ANEW INDUSTRIAL VOL 67. PAGE 174 M.I N.GT. Commercial Industrial RHEW ROAD 14IlUalfrOltWAY Vacant 0 . POUND SAT' IRON Bon Sem' IRON ROTA ka4E4 U 1771 E L5 Tract 111 — L'IJSP Proposed See Plai. .. RI7,U11NDER OF VIRCHBERO TRACT DOG MX 9E12302 D3LNPT. Vacant Caliche Road / �.2. Vacant 716rn. 14TOTAL EN1VCYm AREA IS 11.11t110113. 11 Iifl anus= BEAM= ARMBAND OEA NOLOL TP11110?11A NYErmt NADO41MIOAT AL 11Ai461 EEAND IIOYNNDISCR1 EQUAL OATEALL9IRAMOTHIS SURVEY.RVEV. u 11ec=WY emsNDTDICLI WTilt R,9WrILE VISINIMPLIK LAI 1»aYO6 T ALLQ,RYIN MIUMTOF . LOE UIW6lII4ItS"11E1RtE'aRY. LEONAUIR1126,1R 11011ES191'LT1,wr T1NT11 RRYLY0FT1C171/1MT1 LI6A1LYaErA1E OATREP UAEYADr10N nmOEOUmTefOAT 1X13 OIOUND EQTTOT EImOLYDORANDR3n1?. riWAE.lE0161 E}A;11e,N0 p,e 804EURGAT t.1r1 i 1113s.1 IMIMEI:E -: IS7x'rl LIZ•[T 011MBENWA i LI'S•rr7 1E01.3 1 I Mili=a Vacant Caliche Road / �.2. Vacant 716rn. 14TOTAL EN1VCYm AREA IS 11.11t110113. 11 Iifl anus= BEAM= ARMBAND OEA NOLOL TP11110?11A NYErmt NADO41MIOAT AL 11Ai461 EEAND IIOYNNDISCR1 EQUAL OATEALL9IRAMOTHIS SURVEY.RVEV. u 11ec=WY emsNDTDICLI WTilt R,9WrILE VISINIMPLIK LAI 1»aYO6 T ALLQ,RYIN MIUMTOF . LOE UIW6lII4ItS"11E1RtE'aRY. LEONAUIR1126,1R 11011ES191'LT1,wr T1NT11 RRYLY0FT1C171/1MT1 LI6A1LYaErA1E OATREP UAEYADr10N nmOEOUmTefOAT 1X13 OIOUND EQTTOT EImOLYDORANDR3n1?. riWAE.lE0161 E}A;11e,N0 p,e 804EURGAT t.1r1 AGENDA MEMORANDUM Public Hearing and First Reading for the City Council Meeting of January 13, 2015 Second Reading for the City Council Meeting of January 20, 2015 DATE: December 23, 2014 TO: Ronald L. Olson, City Manager FROM: Dan M. Grimsbo, P.E., Director, Development Services Department DanG@cctexas.com (361) 826-3595 Rezoning from Residential to Commercial For Maxwell P. Dunne Funeral Service, Inc. Property Addresses: 5921 Yorktown Boulevard CAPTION: Case No. 1214-01 Maxwell P. Dunne Funeral Service, Inc.: A change of zoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District, resulting in a change to the Future Land Use Plan, from low density residential to commercial uses. The property is described as a 2.13 acre tract of land out of Lot 20, Section 10, Flour Bluff and Encinal Farm and Garden Tracts, located on the southwest corner of Yorktown Boulevard and Loire Boulevard. PURPOSE: The purpose of this item is to rezone the property to allow a neighborhood commercial use. RECOMMENDATION: Planning Commission and Staff Recommendation (December 3, 2014): Approval of the change of zoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District. BACKGROUND AND FINDINGS: As detailed in the attached report, the applicant is requesting a rezoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District to construct a 10,000 -square foot funeral home. The proposed change of zoning is consistent with the Southside Area Development Plan and is not consistent with the adopted Future Land Use Plan, which slates the property for low density residential uses. The proposed rezoning is consistent with the Comprehensive Plan, is compatible with the surrounding developments, and would not have a negative impact on surrounding properties. The subject property is also suited for the proposed project. ALTERNATIVES: 1. Deny the request. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The rezoning is consistent with policies of the Southside Area Development Plan though it is not consistent with the adopted Future Land Use Plan, which slates the property for low density residential use. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal and Planning Commission FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital Z Not applicable Fiscal Year: 2014- 2015 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: Presentation - Aerial Map Ordinance Planning Commission Final Report Ordinance amending the Unified Development Code ("UDC"), upon application by Maxwell P. Dunne Funeral Services, Inc. ("Owner"), by changing the UDC Zoning Map in reference to a 2.13 acre tract of land out of Lot 20, Section 10, Flour Bluff and Encinal Farm and Garden Tracts, from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding the application of Maxwell P. Dunne Funeral Services, Inc. ("Owner"), for an amendment to the City of Corpus Christi's Unified Development Code ("UDC") and corresponding UDC Zoning Map; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, December 3, 2014, during a meeting of the Planning Commission, and on Tuesday, January 13, 2015, 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. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Upon application made by Maxwell P. Dunne Funeral Services, Inc. ("Owner"), the Unified Development Code ("UDC") of the City of Corpus Christi, Texas ("City"), is amended by changing the zoning on a 2.13 acre tract of land out of Lot 20, Section 10, Flour Bluff and Encinal Farm and Garden Tracts, located on the southwest corner of Yorktown Boulevard and Loire Boulevard (the "Property"), from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District (Zoning Map No. 044031), as shown in Exhibits "A" and "B." Exhibit A, which is a metes and bounds description of the Property, and Exhibit B, which is a map to accompany the metes and bounds, are attached to and incorporated in this ordinance by reference as if fully set out herein in their entireties. SECTION 2. The official UDC Zoning Map of the City is amended to reflect 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 City's 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 specifically pertaining to the zoning of the Property and that are in conflict with this ordinance are hereby expressly repealed. SECTION 6. Publication shall be made in the City's official publication as required by the City's Charter. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 20 , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas The foregoing ordinance was read for the second time and passed finally on this the day of , 20 , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED this the day of , 20 ATTEST: Rebecca Huerta Nelda Martinez City Secretary Mayor Ordinance_1214-01 Maxwell P. Dunne Funeral Service, Inc. Page 2 of 2 Exhibit A 2.13 Acre Zonine Tract State of Texas County of Nueces Job No. 20354.B4.03 October 16"', 2014 Fieldnotes, for a 2.13 acre tract, of Lot 20, Section 10, Flour Bluff and Encinal Farm and Garden Tracts, a map of which is record in Volume A, Pages 41-43, of the Map Records of Nueces County, Texas, being the remainder of 2.47 Acre tract of land, a map of which is recorded in Volume 20, Page 13, of the said Map Records, being the same tract described in a deed from Judy Diane Foutch, to Maxwell P. Dunne Funeral Service, Inc., as recorded in document number 2014037652 of the Official Public Records of Nueces County Texas, said 2.13 acre tract being more fully described by metes and bounds as follows; Beginning, at a 5/8 inch iron rod, with red plastic cap stamped "URBAN ENGR C.C. TX" found, on the Southwest R -O -W line of Yorktown Boulevard, a public road way, the Northwest line of the said 2.47 Acre tract, the East corner of Lot IA, Block 2, King's Crossing Unit 13, a map of which is recorded in Volume 64, Page 96, of the said Map Records, for the North corner of the said 2.13 Acre tract and this tract; Thence, South 61°17'47" East, with the said R -O -W line, a distance of 225.99 feet, to a 5/8 inch iron rod found, in the North corner of Lot 1, Block 7, Kings Crossing Unit 14A, as recorded in volume 63, page 186 and 187, of the said Map Records, for the East corner of the said 2.13 Acre tract and this tract; Thence, South 28°40'11" West, with the common line of the said Lot 1 and the said 2.13 Acre tract, 410.07 feet, to a 5/8 inch iron rod found, on the Southwest line of the said 2.47 Acre tract, the West corner of the said Lot 1, an East corner of the said Lot IA, for the South corner of the said 2.13 Acre tract and this tract; Thence, North 61°21'I I" West, with the common line of the said Lot 1A, the said 2.47 Acre tract and the said 2.13 Acre tract, 226.29 feet, to a 5/8 inch iron rod found, being an inner ell corner of the said Lot IA, for the West corner of the said 2.47 Acre tract, the 2.13 Acre tract and this tract; Thence, North 28°42'41" East, continuing with the said common boundary, 410.29 feet, to the Point of Beginning and containing 2.13 Acres (92,758 sq. ft.) of land, more or less. Bearings are based on GPS, NAD83, State Plane Coordinates, Texas South Zone 4205. Unless this fieldnote description, including preamble, seal and signature, appears in its entirety, in its original form, surveyor assumes no responsibility for its accuracy. Also reference accompanying sketch of tract desc herein. OF ''- " ' o t T et. Rt.,,� i URBAN ENGINEERING o 4 1KEITH W. WOOLEY .. .... 1171.,•1111106••.;"'0 om 5463 P 11'y��oFppG Q: � �. 11Urbanfso21DataLSurveying12o3541B4031oFFICEIMETEs AND BOUNDS 11 • B413 2.I3Ac Zoning Tract 20141016 doc Keith W. Wooley, R.P.L. License No. 5463 (361)854-3101 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 www.urbaneng.com TBPE Firm # 145 • TBPLS Firm # 10032400 Page 1 of 1 FAX (361)854-6001 20'YY.R.� >15' LE1 Lot 1A, Block 2 King's Crossing Unit 13 Vol, 64, Pg. 96, Mop Records of Nueces County, Texas {Plat=N29'00'55"E 410.36')- N213'42'41NE 410.29' 15'u.E.- 2.13 Acres (92,759s1) Maxwell P. Dunne Funeral Service. Inc. Doc. No. 2014037652. 0. P. R. N.C.T. i ( I OI Point o' Beginnin 0 pJDA911100 UMoWO,I 60.0' 11h Iles auraeg EIENNG ASH W ADBti r Corpus Christi, Texas Cimarron Boulevard Lot 1, Block 7 (Non -Buildable) J Kings Crossing Unit 14A Vol. 63, Pgs. 186-187, Map Records of Nueces County, Texas 90 S28'40'11 "W 410.07' (Plat=S29'00'34"W 410.09') 0 60 Loire Boulevard 30 0 Gro' hic60 ole 60 120 O Fd. 5/8" iron rod with red plastic cap stamped Urban Engr C.C. Tx' • Fd. 5/8' iron rod LOC# fl0N MAP N.T.S. Exhibit B Sketch to Accompany Fieldnoteg for a 213 acre tract, of Lot 20, Section 10, Flour Bluff and Encino! Form and Gorden Trach a map of which is record in Volume A, Pages 41-43, of the Map Records of Nueces County, Temp being the remainder of 247 Ass tract of land, o map of which is recorded in Volume 24 Page 14 of the sold Alai, Record, being the same tract desatbed in a deed from Judy Ohne Thatch, to Maxwell P. Dunne Funeral Service, Ina, as recorded in document number 2014037652 of the Official Pubo Records of Nueces County Texas. URBAN ENGINEERING 2725 S.e . Q.R► aMJME IX 70101 !9T r 1A1 745 ISR5 r Ah roar:wA7 ROK' 151) 8544701 Ate 15Q 8546511 DATE: Oct. 24 2014 SCALE: 1'601 JOB NO.: 20354.64.03 SHEET: 1 of 1 DRAWN BY: XG CAP e a] .4.... mnrirntn a., 1.10 ASA nu,r Tn 121-1C_..,.2 Aerial Overview Subject Property Aerial Overview Subject Property PLANNING COMMISSION FINAL REPORT Case No. 1214-01 HTE No. 14-10000042 Planning Commission Hearing Date: December 3, 2014 Applicant & Legal Description Applicant/Owner: Maxwell P. Dunne Funeral Service, Inc. Representatives: Ronald J. Alonzo Legal Description/Location: Being 2.13 acres out of Lot 20, Sectionl0, Flour Bluff and Encinal Farm and Garden Tracts, located on the southwest corner of Yorktown Boulevard and Loire Boulevard. Zoning Request From: "RS -6" Single -Family 6 District To: "CN -1" Neighborhood Commercial District Area: 2.13 Acres Purpose of Request: To construct a 10,000 square foot building to be used as a funeral home. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site "RS -6" Single -Family Vacant Low Density Residential North "RS -6" Single -Family and "CN -2" Neighborhood Commercial Vacant and Commercial Low Density Residential and Commercial South "RS -6" Single -Family Vacant Low Density Residential East "RS -6" Single -Family Low Density Residential Low Density Residential West "RS -6" Single -Family Public Semi -Public Low Density Residential ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Southside Area Development Plan and is planned for low density residential use. The proposed change of zoning to the "CN -1" Commercial Neighborhood District is not consistent with the Future Land Use Plan. Map No.: 044031 Zoning Violations: None Transportation Transportation and Circulation: The subject property has approximately 225 feet of street frontage along Yorktown Boulevard, which is an "A3" Primary Arterial Divided street. The 415 -foot east boundary line of the subject property abuts a 20 -foot wide piece of property along Loire Boulevard which is owned by Kings Crossing Realty Ltd., associated with the residential development across Loire Boulevard. Loire Boulevard is classified as a "01" Minor Residential Collector street. Staff Report Page 2 Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume (2011) Yorktown Boulevard A3 Primary -Arterial Divided 130' ROW 79' paved 135' ROW 25' paved 11,648 Loire Boulevard 01 Minor Residential Collector 60' ROW 40' paved 60' ROW 40' paved N/A Staff Summary: Requested Zoning: The applicant is requesting a change in zoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District to allow the construction of a funeral home. Development Plan: The applicant proposes to construct a 10,000 square foot funeral home and associated parking lot. Hours of operation will be from 8:00 a.m. to 9:00 p.m. Existing Land Uses & Zoning: North of the subject property across Yorktown Boulevard is vacant property zoned "RS -6" Single -Family 6 and property with a small shopping center zoned "CN -2" Neighborhood Commercial. East of the subject property across Loire Boulevard is the King's Crossing Subdivision zoned "RS -6" Single -Family 6. West of the subject property is a church zoned "RS -6" Single -Family 6. South of the subject property is vacant owned by the church zoned "RS -6" Single -Family 6. AICUZ: The subject property is not located in one of the Navy's Air Installation Compatibility Use Zones (AICUZ). Comprehensive Plan & Area Development Plan Consistency: The proposed change of zoning is consistent with the Southside Area Development Plan and is not consistent with the adopted Future Land Use Plan, which slates the property for low density residential uses. Additionally, the following pertinent elements of the Comprehensive Plan should be considered: • The intent of the proposed land use plan is to support existing and planned residential neighborhoods and related growth in the Southside ADP areas. The plan provides for a compatible configuration of activities with emphasis on: accommodation of existing zoning patterns; the protection of low-density residential activities from incompatible activities; the placement of commercial activities at locations with good access and high visibility; and the identification of environmental sensitive areas that should be preserved. (Southside Area Development Plan Policy Statement B.1). • The "CN -1" Neighborhood Commercial and other commercial zoning regulations, in concert with the Comprehensive Plan policies, should be reviewed and revised as necessary to control the size and use of commercial centers so they remain in scale with their surrounding uses and highway carrying capacity. True "neighborhood" commercial activities should be aimed toward meeting the daily convenience retail needs of nearby residents for food, pharmaceuticals, personal Staff Report Page 3 services, etc. Rezoning to new "CN -1" Neighborhood District should occur on limited site areas in existing or new residential development. Higher intensity uses and larger sites should be located away from low density residential and along highway systems with capacities commensurate with their traffic generation. (Southside Area Development Plan Policy Statement B.4). Plat Status: The subject property is not platted. Department Comments: • The proposed rezoning to the "CN -1" Neighborhood Commercial District is not consistent with the adopted Future Land Use Plan but does reflect conformity with the Southside Area Development Plan Policy Statement B.1 in that "Rezoning to new "CN -1" Neighborhood Commercial District provides for protection of low-density residential activities from incompatible activities and the placement of commercial activities at locations with good access and high visibility." • The proposed rezoning does reflect conformity with the Southside Area Development Plan Policy Statement B.4 in that "Rezoning to new "CN -1" Neighborhood Commercial District should occur on limited site areas in existing or new residential development." • It is staff's opinion that the proposed rezoning would not negatively impact the surrounding residential properties. • The amendment is compatible with the present zoning and conforming uses of nearby property and to the character of the surrounding area. • The property to be rezoned is suitable for uses permitted by the zoning district that would be applied by the proposed amendment. Planning Commission and Staff Recommendation: Approval of the change of zoning from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Commercial District. Public Notification Number of Notices Mailed — 14 within 200 -foot notification area 5 outside notification area As of December 23, 2014 In Favor — 0 inside notification area — 0 outside notification area In Opposition — 1 inside notification area — 0 outside notification area Totaling 2.018% of the land within the 200 -foot notification area in opposition. Attachments: Location Map (Existing Zoning & Notice Area) K:\DevelopmentSvcs\SHARED\ZONING CASES\2014\1214-01 Maxwell P. Dunne Funeral Service, Inc\PC Documents\Report for PC - 1214-01 Maxwell P. Dunne Funeral Svc., Inc..docx Staff Report Page 4 RS -6 4,4411* RS -6 **, RS=TF e 4f*> 411411.4* 14* * 441 411. ti ry •eClea: dt/14/2014 Prepared By: J00emyM a\en�•1 oev fopmen(Ser4Tee \ CASE: 1214-01 ZONING & NOTICE AREA 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 Commercl4i CR -2 Resort Commercial CG -1 General Commercial CG -2 General Commercial CI Intensive Commercial CBD Downtown Commercial CCR -3 Resort Commercial FR Farm Rural H Historic Overlay BP Business Park IL Light Industrial IH Heavy Industrial P11D Planned Unit D. Overlay RS -10 Single -Family 10 RS -6 Single -Family 0 RS -4.0 Single -Family 4.5 RS -TF Tvo-Family RS -15 Single -Family 15 RE Residential Estate RS-TH Townhouse SP Special Permit RV Recreational Vehicle Park RMH Manufactured Home I I Suhjed Property %% Dwxrs with 200' ,o f�r vin ravor 4 Owners within 200' IrsPed on Owners attached ownership table /� 0, apposIhon N J O� SUBJECT PROPERTY LOCATION MAP City of Corpus Christi AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: TO: FROM: December 4, 2014 Ronald L. Olson, City Manager Floyd Simpson, Chief of Police floyds@cctexas.com 886-2603 Amending Chapter 57 of the Code of Ordinances to modify the auto wrecker ordinance CAPTION: Amending Chapter 57, Article V "AUTOWRECKERS" of the Corpus Christi Code by modifying permitting, regulatory, and enforcement procedures of auto wreckers, increasing fees for substitution of vehicle, and increasing wrecker service fees; Providing an effective date; Providing for severance; Providing for penalty; and Providing for publication. PURPOSE: The wrecker ordinance needed updating. The last modification was in February 2011. BACKGROUND AND FINDINGS: The changes to the ordinance are: • Increase in fees for wreckers across the board — Pursuant to proposed amendment to §57-249, fees increase for Category A Wreckers for rotation list tow from $110 to $150, maximum allowed fee charged from $170 to $255, distance charge fee increased from $15 to $25, cleanup fee increased from $30 to $60, private property impound from $115 to $150 and creating a $75 four wheel drive vehicle on beach fee. Fees increase for Category B wreckers from rotation list tow from $325 to $475, additional hourly allowed fee from $275 to $350, and private property impound from $400 to $520. Wreckers can charge fees for use of air bag recovery system equipment which is specialty equipment. • Removal of dollies, go -jacks or skate fees - Pursuant to proposed amendment to § 57-249, wreckers could not charge a fee for use of dollies, go -jacks or skate. Dollies, go -jacks and skate fees are outdated technology not commonly used. • Holding affiliate wrecker companies accountable for violations — Pursuant to proposed amendment to § 57-231, affiliated companies receive same punishment as offending company. Additionally, a permit can be denied, suspended or revoked where permittee is delinquent on outstanding fines or fees due to the Texas Department of Licensing and Regulation or the City. • Elimination of probation as a punishment - Pursuant to proposed amendment to §57- 231, probation would not be an option. The Department does not currently place wrecker companies on probation. • Eliminating the requirement to have two types of wreckers to be on rotation list - Pursuant to proposed amendment to §57-223, wrecker companies would need three small wreckers to get on small wrecker rotation list and would no longer need two small wreckers and a large wrecker. Proposed ordinance grandfathers current companies who met old requirements. • Increases size of small rotation wreckers - Pursuant to proposed amendment to § 57- 224, the ordinance increases the size of Category A wreckers from 10,000 pounds to 15,000 pounds to match industry standard. • Allowing vehicle owners access to impounded vehicles - Pursuant to proposed amendment to §57-250, owners of vehicles held by wrecker companies will be allowed to obtain personal property from within the vehicle. • Requires private property tows to take multiple photographs - Pursuant to proposed amendment to § 57-253, private property tows are required to take multiple photos demonstrating compliance with law. The Police Department hosted six different meetings with the wrecker companies to allow them input into the proposed changes (8/28/12, 1/29/13, 6/13/13, 12/10/13,5/14/14, and 8/7/14). There is a consensus from the companies to move forward with the proposed ordinance. ALTERNATIVES: None OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 0 Encumbered / Expended Amount 0 This item 0 BALANCE 0 Fund(s): General Comments: RECOMMENDATION: Staff recommends supporting changes to the ordinance. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance Amending Chapter 57, Article V "AUTOWRECKERS" of the Corpus Christi Code by modifying permitting, regulatory, and enforcement procedures of auto wreckers, increasing fees for substitution of vehicle, and increasing wrecker service fees; Providing an effective date; Providing for severance; Providing for penalty; and Providing for publication. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Chapter 57, Article V "AUTOWRECKERS" is revised to read as follows: Sec. 57-220. - Definitions. As used in this article, the following terms shall have the respective meanings ascribed to them: Affiliate: means 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. Auto wrecker: Means a motor vehicle, including a wrecker, equipped with a mechanical device used to tow, winch, or otherwise move another motor vehicle. The term does not include: (a) A motor vehicle owned and operated by a governmental entity, including a public school district; (b) A motor vehicle towing: (1) A race car; (2) A motor vehicle for exhibition; or (3) An antique motor vehicle; (c) A recreational vehicle towing another vehicle; (d) A motor vehicle used in combination with a tow bar, tow dolly, or other mechanical device if the vehicle is not operated in the furtherance of a commercial enterprise; (e) A motor vehicle that is controlled or operated by a farmer or rancher and used for towing a farm vehicle; or (f) A motor vehicle that: (1) Is owned or operated by an entity the primary business of which is the rental of motor vehicles; and (2) Only tows vehicles rented by the entity. Certificate of insurance: A certificate prescribed by and filed with the chief of police in which an insurance carrier or surety company, approved in this state, warrants that a towing company for whom the certificate is filed has the minimum coverage as required by Chapter 2308 of the Occupations Code. Chief of police: The chief of the police department of the City of Corpus Christi or his designated representative. City: The City of Corpus Christi. Closest wrecker: The owner of an auto wrecker permit which is located geographically closest to the scene of an emergency situation can be dispatched for an emergency disregarding the rotation list. This does not mean an auto wrecker which happens to be near the scene. Consent tow: Has the meaning assigned by Section 2308.002 of the Occupations Code. Disabled vehicle: Any motor vehicle located on any public street, alley, or sidewalk area which is incapable of being driven under its own power due to mechanical breakdown, collision, or for any other reason. Driver's license: Has the meaning assigned by Section 521.001 of the Transportation Code. Drop fee: The price to be charged in lieu of a towing fee where, after an auto wrecker has been dispatched to, or is at the scene of a tow, and has started to physically attach or connect the vehicle to the auto wrecker, and the vehicle has not been towed from the scene when the vehicle owner requests its release. Emergency situation: A serious vehicle accident or similar situation in which the rapid arrival of an auto wrecker would considerably reduce a life or death risk or in which extreme blockage of a major thoroughfare is involved. Impounded vehicle: Any vehicle which police officers are authorized to impound and remove under the provisions of any ordinance of the City of Corpus Christi, any law of the State of Texas, or any contract or agreement with any law enforcement agency. Incident: An unplanned randomly occurring traffic event that adversely affects normal traffic operations. Incident management tow: Has the meaning assigned by Section 2308.002 of the Occupations Code. Nonconsent tow: Has the meaning assigned by Section 2308.002 of the Occupations Code. Normal tow: All measures necessary to transport a disabled vehicle including but not limited to: double hook-up, multiple tow (vehicle and small trailer), cleaning of an accident scene; it does not include: winching, changing tire(s), use of dolly(ies), on -scene delays caused by other than the wrecker driver, or a second wrecker to tow or assist the first wrecker on a single disabled vehicle, which have additional fees. 2 Owner: The person, corporation, or partnership which has an auto wrecker permit and owns any auto wrecker which is permitted by article V. Owner includes all owner's employees and agents and shall be plural if the context so requires. Parking facility: Has the meaning assigned by Section 2308.002 of the Occupations Code. Parking facility authorized agent: Has the meaning assigned by Section 2308.002 of the Occupations Code. Parking facility owner: Has the meaning assigned by Section 2308.002 of the Occupations Code. Private property impound: A nonconsent tow from private property. Private property tow: Has the meaning assigned by Section 2308.002 of the Occupations Code. Public roadway: Has the meaning assigned by Section 2308.002 of the Occupations Code. Rotation list: The list set up by section 57 24-3241 which determines the order in which auto wreckers are sent to tow a vehicle for the police department. Rollback wrecker: A tow truck equipped with a moveable bed, which is adapted for winching a vehicle onto the bed for the purpose of recovering and transporting that vehicle. Rotation wrecker: An auto wrecker company permitted to conduct police -initiated rotation or incident management tow and impound towing within the territorial limits of the city. Scene: The location of a disabled or impounded vehicle. Unauthorized vehicle: A vehicle parked, stored, or located on a parking facility without the consent of the parking facility owner. Vehicle: Has the meaning assigned by Section 2308.002 of the Occupations Code. Vehicle owner: Has the meaning assigned by Section 2308.02 of the Occupations Code. Vehicle storage facility: Has the meaning assigned by Section 2308.02 of the Occupations Code. Wrecker company: Means an individual, association, corporation, or other legal entity that controls, operates, or directs the operation of one (1) or more tow trucks over a public roadway for compensation within the territorial limits of the city. Sec. 57-221. - Offenses; penalty. Unless otherwise stated, a culpable mental state is not a required element of an offense under this article. Each day a violation continues shall constitute a separate offense. 3 (a) A person commits an offense if the person intentionally or knowingly without consent of the vehicle owner, operator, or authorized representative of the owner tows or causes the towing of a vehicle from private property, other than an abandoned, junked, illegally parked, trespassing, repossessed, or unauthorized vehicle. (b) A person commits an offense if the person intentionally or knowingly tows or causes the towing of a vehicle from any public street, right-of-way, beach, or public property without the consent of the vehicle owner or operator, or at the direction of a sworn peace officer acting in his official capacity. (c) A person commits an offense if the person intentionally or knowingly tows or causes the towing of a vehicle as an unauthorized vehicle, in accordance with the Texas Occupations Code, from a parking facility that does not have a properly posted sign, or that the vehicle owner has not received proper notice, or that the vehicle was not left in violation of section 2308.254 of the Occupations Code, or that the vehicle was in or obstructing a paved driveway or abutting public roadway used for entering or exiting the facility. (d) A person commits an offense if the person violates any section of this article, any rules or regulations promulgated by the chief of police, the Texas Department of Licensing and Regulation, or Chapter 2308 of the Occupations Code. (e) A person commits an offense if the person charges or collects a fee that is not authorized or is greater than the amount authorized by this article. (f) A person commits an offense if the person allows an unapproved driver to operate an auto wrecker. (g) A person commits an offense if the person submits a falsified application, affidavit, business records, certification, training, drug or alcohol testing results. (h) A person commits an offense if the person consumes any alcoholic beverage or uses any controlled substance while on duty or operates an auto wrecker. (i) A person commits an offense if the person operates an auto wrecker without a valid permit issued by the chief of police. (j) A person commits an offense if the person works or allows another person to work at a vehicle storage facility without a license issued by the Texas Department of Licensing and Regulation. Sec. 57-222. - City permit required. Unless allowed by another law or regulation, a A wrecker company or an auto wrecker operator shall not operate or cause an auto wrecker to be operated on the public roadways perform a nonconsent tow within the territorial limits of the city unless the auto wrecker displays, in 4 accordance to section 57-229, a current permit issued by the chief of police for the auto wrecker under this article. A separate permit is required for each auto wrecker. Sec. 57-223. - Application, contents, fees. (a) Any person, firm, company, corporation, or partnership desiring to operate one (1) or more auto wreckers for compensation nonconsent tows in the city shall make an original or renewal application for an auto wrecker permit or an auto wrecker rotation list permit to the chief of police as follows. (b) Original application. An applicant shall submit: (1) An original application with the name, address, and current phone number of all owners. a. If the owner of the auto wrecker is a partnership, the application shall contain the partnership's name, address, and phone numbers and the names, addresses, and phone numbers of all partners. b. If the applicant is a corporation, the application shall state the corporate name, the office address, and phone number of the corporation, together with the names, addresses, and phone numbers of the president and secretary of the corporation. (2) For a rotation list permit, a list of each wrecker the owner wants to permit and attach a copy of the Texas License Receipt and the Texas Tow Truck Registration for each wrecker. The permit issued by the chief of police is only valid to the person and for the wrecker applied. A person who succeeds to the ownership or operation of a wrecker service, and is not identified on a current wrecker service application, must submit a new application to the chief of police. (3) For a rotation list permit, a list of each wrecker the owner wants to permit, the certification (category A or category B auto wrecker, see section 57-2M50), and attach a copy of the Texas License Receipt and the Texas Tow Truck Registration for each auto wrecker. Wrecker company -established prior to June 1, 2014- must have at least two (2) properly operating type A wreckers and one (1) properly operating type B wrecker that are fully equipped, in accordance to section 57-224, for each category wrecker company is applying to apply for a type A permit. Wrecker company -established after June 1, 2014 must have at least three (3) properly operating type A wreckers, that are fully equipped, in accordance to section 57-224, to apply for a type A permit. All permitted auto wreckers must be available for twenty-four (24) hours a day service when dispatched or assigned a call for service regardless of the assigned rotation schedule published by the chief of police each month. (4) Proof of ownership of all auto wreckers listed on the auto wrecker permit or rotation list permit application. 5 (5) A current certificate from the county tax assessor -collector to prove that taxes on all property, real and personal, to be used in connection with the owner's auto wrecker business are paid. (6) For a rotation list permit, the owner shall provide a copy of a deed to or lease for the proposed location for the auto wrecker business and storage facility and written verification of the zoning of the proposed location from the city planning department. (7) A written statement that he will comply with the provisions of this article and of all other ordinances, statutes and state laws applicable to motor vehicles and auto wrecker businesses. Further, owner will ensure that all owner's auto wrecker drivers will comply with said laws. (8) (9) A copy of owner's Texas Sales and Use Permit. A copy of owner's certificate of occupancy at the business location. (10) For an auto wrecker rotation list permit, a copy of the owner's current Texas Vehicle Storage Facility License issued by the Texas Department of Licensing and Regulation. (11) A copy of owner's certificate of insurance in the amounts required by Chapter 2308 of the Occupations Code. (12) For a rotation list permit, a list of all owner's auto wrecker drivers, including each driver's name, Social Security number, date of birth, drivers license number and state of license. All owners and drivers must successfully pass a criminal background check. (13) For a rotation list permit, a sworn affidavit indicating whether the owner and wrecker company have ever been disciplined by any agency that regulate auto wrecker business including the Texas Department of Licensing and Regulation and the chief of police. The affidavit should state the disciplinary agency, nature of the complaint or violation, date, location, and the penalty imposed. Owner and wrecker company are required to notify the chief of police, in writing and within ten (10) days from the date in which they receive notice of any disciplinary actions taken against the owner or wrecker company during the permit term. (14) For a rotation list permit, the owner shall file an affidavit of ownership and provide business records, if requested by the chief of police, to demonstrate that the wrecker company has been established within the territorial limits of the city for at least one (1) year two (2) years, and a sworn statement of whether the owner or wrecker company has received disciplinary actions against it by any agency that regulates the auto wrecker business. The chief of police may deny a rotation list permit to a company that has received disciplinary actions, or to a company that is established after March 1, 2011 and -does not meet the one (1) year two (2) years' business requirement. 6 (15) List of all affiliated companies by name and address. Such list shall provide how affiliated companies are affiliated. (c) Renewal application. To renew and maintain continuous licensure, the renewal requirements under this section must be completed prior to the expiration of the permit. A late renewal means the permit holder will have an unpermitted period from the expiration date of the expired permit to the issuance date of the renewed permit. During the unpermitted period, a tow truck may not be used, caused to be used or operated for towing on the public roadway within the territorial limits of the city. An applicant shall submit a renewal application that contains the name, address, and current telephone number of all owners, and the following: (1) Written confirmation of any changes to information supplied in the original or renewal application. (2) A current certificate or receipt marked paid from the county tax assessor -collector that all taxes on both real and personal property used in connection with the owner's auto wrecker business are paid. The chief of police may deny, suspend or revoke a permit if taxes of the preceding year are not paid in full by January 31 of each year. (3) For a rotation list permit, a copy of owner's current Texas Vehicle Storage Facility License issued by the Texas Department of Licensing and Regulation. (4) A current certificate of insurance in the amounts required by Chapter 2308 of the Occupations Code. (5) A copy of owner's current Texas License and Receipt and Texas Tow Truck Registration issued by the Texas Department of Licensing and Regulation to each auto wrecker listed in the application. (6) A copy of the insurance cab card certificate issued by the Texas Department of Licensing and Regulation for each auto wrecker listed in the application. (7) A list of all owners' current auto wrecker drivers and the required information [see subsection 57-223(b)(12)]. (8) For a rotation list permit an owner and driver must successfully pass a criminal background check. (9) For a rotation list permit, a copy of continuing education record on all drivers. Continuing education courses must meet the guidelines set forth by the Texas Department of Licensing and Regulation. (10) For a rotation list permit a sworn affidavit indicating whether owner and wrecker company have ever been disciplined by any agency that regulate auto wrecker business including the Texas Department of Licensing and Regulation and the chief of police. The affidavit should state the disciplinary agency, nature of the complaint or violation, date, 7 location, and the penalty imposed. Owner and wrecker company are required to notify the chief of police, in writing and within ten (10) days from the date they receive notice of any disciplinary actions taken against the owner or wrecker company during the permit term. (11) For a rotation list permit, the owner shall file an affidavit of ownership and provide business records, if requested by the chief of police, to demonstrate that the wrecker company has been established within the territorial limits of the city for at least two (2) years one (1) year, and a sworn statement of whether the owner or wrecker company has received disciplinary action against it by any agency that regulates the auto wrecker business. The chief of police may deny a rotation list permit to a company that has received disciplinary actions, or to a company that is established after March 1, 2011 and does not meet the one (1) year two (2) years' business requirement. (12) List of all affiliated companies by name and address. Such list shall provide how affiliated companies are affiliated. (d) Original application or renewal application. The application for an auto wrecker or auto wrecker rotation list permit or renewal application shall be accompanied by an application fee of one hundred dollars ($100.00). If application or renewal is approved, the owner shall pay the permit fees as provided in section 57-226. No more than one permit shall be issued to any auto wrecker company or owner of multiple auto wrecker companies that are established after March 1, 2011. This section does not impede the city's right not to issue a permit to any towing company. (e) Inspection. Upon receipt of the application, the required information and fees, a police department representative will inspect the applicant's auto wrecker and storage facility, in accordance with the provisions of sections 57-224 and 57 210238. Sec. 57-224. - Application and certification. (a) The chief of police or the police chiefs designee shall review each auto wrecker permit application and auto wrecker rotation list permit application for compliance with this article, and shall inspect and certify each auto wrecker, business location, and storage facility for rotation list permits if the auto wrecker meets the requirements of a rotation list category A or category B auto wrecker, and the business location and storage facility are acceptable and properly zoned. (b) Category A. A category A auto wrecker shall meet the following requirements: (1) Be not less than one (1) ton (minimum ten thousand (10,000) pounds gross vchicic weight) in capacity A manufacturer's gross vehicle weight rating of not less than 15,000 pounds, as reflected on the manufacturer's certificate. If the unit does not have a manufacturer's certificate, then the gross vchicic weight shall be determined by a testing procedure approved by the chief of police. (2) Be equipped with a power winch, winch line, and or boom, with a factory -rated lifting capacity of not less than eight thousand (8,000) pounds, single -line capacity. If a 8 hydraulic wheel lift is installed, it must have a factory -rated capacity of not less than €euf thousand (1,000) three thousand five hundred (3,500) pounds. If the unit docs not have an established factory rated lifting capacity, then such capacity shall be determined by a testing procedure approved by the chief of police. (c) Category B. A category B auto wrecker shall meet the following requirements: (1) Be over twenty six thousand (26,000) pounds gross vehicle weight in capacity, as reflected on the manufacture's certificate A manufacturer's gross vehicle weight rating of not less than 26,000 pounds. If the unit docs not have a manufacture's certificate, then the gross weight shall be determined by a testing procedure approved by the chief of police. (2) Be equipped with a power operated winch, winch line, and boom with a factory - rated lifting capacity of not less than thirty-five thousand (35,000) pounds, single or double line capacity. If the unit does not have a factory rated capacity, then said capacity shall be determined by a testing proccdurc approved by the chief of police. (d) Each auto wrecker and the equipment thereon shall be in good mechanical condition and shall comply with all applicable city ordinances and state laws. Each auto wrecker shall have brakes that meet braking performance requirements under all loading conditions. (e) Each auto wrecker at all times shall carry the following as standard equipment in good working order, except as otherwise noted: (1) A tow sling or hydraulic lift which is sufficient to prevent the swinging of any equipment being transported. (2) Steel safety chains of a three eighths inch link for category A auto wreckers and of one half inch link for category B -auto wreckers -must be certified grade 70 or above. (3) One (1) ten -pound BC (or two (2) five -pound BC) fire extinguisher that is properly filled and located so that it is readily accessible for use. (1) One (1) crowbar or wrecking bar of not less than thirty six (36) inches in length with a wedge head. (5) One (1) broom of a type designed for pushing with an eighteen (18) inch head and a handle of not less than thirty six (36) inches. (6) One (1) flat edged shovel of at least nine (9) inches with a handle of not less than thirty six (36) inches. (7) Three (3) portable red emergency reflectors. (8) Towing dollies in working condition, category A rollback wreckers and category B and C wreckers are exempted. (9) A box or bucket to carry glass and debris cleaned from streets when picking up a wrecked vehicle. (10) Rope or wire suitable for securing doors, hoods, trunks, etc. 9 (11) A spotlight or flashlight. (12) Outside rearview mirrors on both sides of the truck. (13) One (1) set of operating tow lights (for towed vehicle). (11) Wheel chocks: minimum two (2) each. (4) Additional equipment required include one (1) crowbar, broom, flat edge shovel, three (3) portable red emergency reflectors, box or bucket for debris, rope or wire, spotlight or flashlight, one(1) set of operating tow lights, and two(2) wheel chocks. (15) A reflective, brightly colored safety vest, shirt, or jacket must be worn by the auto wrecker operator and employee at all times while working outside the auto wrecker; the reflective vest, shirt or jacket must meet the ANSI/ISEA requirements for high visibility safety apparel. ( (5) Auto wrecker operator and employee shall wear gloves, long pants, hard toe or steel toe shoes, and shirts long enough to remain inside the trouser belt line and keep the operator or employee's skin covered, appropriate safety gear and ANSI/ISEA approved high visibility safety vest. All operators and employees shall maintain a neat appearance while on duty. (f) Each auto wrecker must be labeled in accordance with Chapter 86 of the Texas Department of Licensing and Regulation Administrative Rules. (g) Each auto wrecker shall be equipped with a radio receiver set or portable telephone capable of clearly receiving transmissions by the owner's dispatcher. (h) (g) All auto wreckers shall have flashing or rotating overhead warning lights that are in good working order, with lenses free of oxidation, that rotate and are clearly visible during daylight hours, and in compliance with the applicable provisions of the Texas Transportation Code. (r) (h) If an auto wrecker is transporting a vehicle which does not have functioning lights, the auto wrecker driver must supply the towed vehicle with functioning lights. These lights must provide safe lighting of the towed vehicle. These lights, including turn signals, brake, and clearance lights, must be actuated by the auto wrecker_ O u) The owner and driver of each auto wrecker shall comply with all regulations governing auto wreckers contained in this article or any applicable laws of the City of Corpus Christi or the State of Texas. (4E) (j) All auto wreckers_ including rollback wreckers must have the capability to, and actually put, the impounded vehicle on the ground for the vehicle impound control officer's inspection at the city's impound lot and inventory prior to the impound control officer accepting the vehicle. The impound control officer shall not be required to climb onto any auto wrecker to inspect or inventory an impounded vehicle. After inspection, the owner or auto wrecker driver will put the vehicle into the parking spot assigned by the impound control officer. shall abide by all City impound lot rules and regulations. 10 () (k) All auto wreckers must keep a current certificate of registration for tow truck service issued by the Texas Department of Licensing and Regulation, vehicle tag, motor vehicle inspection sticker, tow truck license displayed, and liability insurance certificate in the cab at all times. Said certificate of registration and insurance or a true and correct copy thereof must be provided by owner or any tow truck operator to the chief of police at any time upon request. The chief of police or his designee may inspect tow trucks at any time. Sec. 57-225. - Notice of denial of application or renewal. The chief of police or his designee shall give owner written notice of the denial of any application or renewal and the owner has the right to appeal the chief of police's decision in accordance to section 57-2231. Sec. 57-226. - Permit issuance; fees. The chief of police shall issue an auto wrecker permit or auto wrecker rotation list permit to an owner whose application complies with all requirements of this article upon owner's payment of: (a) An auto wrecker operation fee: one hundred twenty-six dollars ($126.00) for each auto wrecker. (b) An auto wrecker rotation list permit fee: three hundred fifteen dollars ($315.00). (c) An auto wrecker permit fee: one hundred dollars ($100.00). (d) The one hundred dollars ($100.00) application fee shall be applied to the auto wrecker permit fee above, if the permit is approved. (e) The one hundred dollars ($100.00) application fee shall be forfeited if an original or renewal application is denied. Sec. 57 227. Reserved. Sec. 57 2-2-8-227. - Permit term. (a) Each auto wrecker and rotation list permit shall be issued for one (1) year from January 1 to December 31. (b) If any auto wrecker or rotation list permit is issued for less than one (1) year the three hundred fifteen dollar ($315.00) permit fcc and one hundred twenty six dollar ($126.00) operation fee per auto wrecker shall be prorated based on the number of months remaining until December 31. ($(b) Renewal fees will be paid in the same manner as set out above. 01)(c) There will be no refund of permit fees or operation fees. 11 Sec. 57 229228. - Permits numbered; identification on vehicle; drop fee sign. (a) An auto wrecker and rotation list permit issued by the chief of police shall be numbered consecutively and each permit holder shall affix the permit number in clearly legible numerals to all doors of the auto wrecker covered by said permit. All identifications and permit numbers shall be permanently affixed in letters no less than two (2) inches high. (b) The chief of police shall issue annual permit decals for each permitted wrecker. The decals shall be affixed to the windshield of the permitted wrecker. Sec. 57-2-38229. - Substitution of vehicle; fees. An owner may substitute an unpermitted auto wrecker for one which has been permitted upon providing written notice of intent to substitute. The notice shall contain all information required by section 57-223, and the owner shall pay a twenty dollar ($20.00) fifty dollar ($50) inspection fee for each substitute auto wrecker. If the substitute auto wrecker complies with the requirements of section 57-223, owner's permit shall be amended to add the substitute auto wrecker and delete the previous auto wrecker. Sec. 57 231. Adding vehicles; fees. Owner may add one (1) or more additional auto wreckers to the permit by filing a supplemental application containing all information required by section 57 223. If the additional auto wrecker complies with the requirements of sections 57 223 and 57 221, owner's permit shall be amended to add the additional auto wrecker(s). The fee for adding auto wreckers to a permit shall be one hundred twenty six dollars ($126.00) prorated based on the number of months remaining until December 31, provided, the minimum fee for adding an additional auto wrecker shall be fifty dollars ($50.00). Sec. 57 232230. - Insurance. (a) Owner shall maintain liability insurance for each auto wrecker to meet the requirements of Chapter 2308 of the Occupations Code and any other federal and state laws. In addition, owner shall maintain workers' compensation or occupational safety insurance for their employees in the amounts and types required by law. All such policies, except workers' compensation or occupational safety insurance, shall be primary to any other insurance. At the time of initial registration, and upon renewal, a certificate of insurance must be filed with the chief of police. The certificate must certify the type and amount of insurance coverage. Owner shall provide immediate notice to the chief of police prior to any cancellation or material changes in the policy. (b) Unless state law permits an auto wrecker to be self-insured, any insurance required for an auto wrecker must be obtained from an insurer authorized to do business in this state pursuant to the Texas Insurance Code. Insurance covering permitted auto wrecker must be kept in full force and effect at all times. The certificate of insurance must contain a provision obligating the insurer 12 to give the chief of police notice in accordance with the policy provisions before the effective date of a policy cancellation date. (c) All auto wrecker drivers shall be named or listed on owner's liability insurance policy. (d) A permit issued under this article shall automatically be suspended upon the cancellation or expiration of the insurance policy and will not be reinstated until owner or wrecker company provides satisfactory proof of insurance certificate to the chief of police verifying that all required coverages are met. (e) The policies shall contain a clause naming the city as an additional insured. The chief of police shall have authority to increase the insurance requirements upon thirty (30) days' written notice to all owners or wrecker companies. (f) An original copy of the renewal certificate of insurance shall be provided to the chief of police at least fifteen (15) days before the ending date of any insurance in effect for each owner. Failure to comply will result in the wrecker company being deleted automatically from the rotation list until the next monthly rotation list is published following the receipt of said renewal certificate. (g) Owner shall keep evidence of insurance in a form approved by the chief of police in the cab of each permitted auto wrecker. (h) Owner shall fully indemnify and hold the city harmless from all claims, actions, and lawsuits for personal injury or property damage arising in connection with services provided by wrecker company. Owner and wrecker company are solely responsible for all vehicles towed by auto wrecker and for all properties inside vehicles. Sec. 57 233231. - Denial, suspension, mon and revocation of permit—Procedure, appeal. (a) The chief of police may deny an application, suspend, or revoke a permit if the applicant, owner or wrecker company has: (1) A criminal conviction, or has pleaded guilty or nolo contendere to an offense, before the date of the application, for a felony or a misdemeanor punishable by confinement in jail or by a fine in an amount that exceeds five hundred dollars ($500.00); (2) Violated any provisions of Chapter 2308 of the Texas Occupations Code, rules or regulations promulgated by the Texas Department of Licensing and Regulation, any provisions of the city ordinance, or rules or regulations promulgated by the chief of police including an order for sanctions or administrative penalties; (3) Knowingly submitted false or incomplete information on the application, or the applicant failed in any material way to comply with this article; of (4) The applicant or owner has had a permit revoked under this chapter.; or 13 (5) The applicant or owner is delinquent on outstanding fines or fees due to the Texas Department of Licensing and Regulation or the City. (b) Notwithstanding any penal provisions contained in this Code, the chief of police shall be authorized to deny, revoke, or suspend, or place on probation any auto wrecker or rotation list permit for a violation of the state law, city ordinance or any other rules or regulations governing the operation of an auto wrecker, if committed by an auto wrecker owner, his agents or employees. Such denial, suspension, or revocation, or probation shall be made in accordance with the following procedures: (1) Upon complaint by any person or the chief of police own motion against any owner, agent or employee of a wrecker company for violating any provision of the city ordinance, the chief of police and Texas Department of Licensing and Regulation rules or regulations governing auto wrecker, or state law, the chief of police or his designee, after giving five (5) ten (10) days' notice of the grounds of such complaint to the wrecker company shall hold a hearing. After proper notice was giving is given and the owner fails to appear for the hearing, the chief of police or his designee may proceed with the hearing by taking testimony or evidence from any person or witnesses who were are present. For a -good cause and at the chief of police or his designee's sole discretion, a hearing may be rescheduled one time at the owner's request provided that the chief of police or his designee receive the written reschedule request at least two (2) working days before said hearing. At the conclusion of said hearing, the chief of police or his designee may issue: a. A warning to the owner; b. Deny the permit; or c. Permanently revoke or suspend the permit. d. Put the permit on probation. Previous warnings, probations or suspensions within the preceding two (2) years may be considered by the chief of police or his designee in making the decision. (3) (2) If the chief of police or his designee suspends the permit, the suspension shall not be more than sixty (60) days. If the chief of police places a permit on probation, the probation shall not be more than six (6) months. The chiefs action shall be final. (3) All suspensions and revocations shall apply to the wrecker company and its permitted affiliates. (4) If the chief of police or his designee revokes a permit permanently, suspends, place a permit on probation, or deny a permit, he shall notify the owner in writing. The notice shall be deemed sufficient if deposited in the United States mail addressed to the owner's business address as contained in the original or renewal application for a permit, and by electronic mail or facsimile. The owner shall have the right to appeal the chief of police's decision to revoke a permit, suspend a permit, or deny a permit application, within ten (10) days from the date of the notice of revocation, suspension, or denial, by sending a letter addressed to the city manager stating that an appeal from the chief of police's decision is desired. If an appeal is perfected, the chief of police's decision shall be 14 suspended pending a hearing by the city manager or his designee. The city manager or his designee shall promptly, within thirty (30) days, hear such appeal and shall either sustain, modify, or revoke the chief of police's decision. If no appeal is taken or if it is untimely filed, or if the city manager or his designee does not hear the appeal within thirty (30) days from receiving the notice of appeal, the chief of police's decision shall be final and the permit is denied, revoked or suspended. When a permit revocation is upheld, the owner shall remove, within five (5) working days, the city permit number from the sides of all wreckers previously permitted and the annual permit decal from the windshields. Sec. 5744232. - Same Waiting period after revocation. No person, firm, partnershipref corporation or affiliate whose auto wrecker or rotation list permit has been revoked shall be eligible to apply for a new permit for a period of at least one (1) year from the date of revocation. Sec. 57 235233. - Promulgation of regulations. The chief of police is authorized to issue rules and regulations relating to the operation of auto wreckers consistent with the provisions of this article and designed to effectuate the general purpose of this article. Violation of any provisions of the chief of police rules and regulations may result in suspension or revocation of the auto wrecker permit and/or denial or removal from rotation list. The appeal process described in section 57-231 will apply to alleged violations of any such provisions. Sec. 574234. - Maintenance of place of business and equipment. No owner may operate a permitted auto wrecker business and storage facility, unless he maintains his place of business, his storage facility, and all of his equipment in a manner that continuously complies with the provision of this article and the zoning, fire prevention, and other city ordinances. Sec. 57 237235. - One company per business location. Only one (1) permitted auto wrecker business and storage facility may operate at any one (1) business address and/or location, regardless of whether the same person, partnership, or corporation owns more than one (1) permitted auto wrecker business. If two (2) or more auto wrecker businesses were in operation at the same business address and/or location prior to March 8, 1988 they are exempted from this section. However, any owner whose auto wrecker or rotation list permit is suspended or revoked by the chief of police, or who voluntarily removes himself from the wrecker rotation list, or who fails to renew his permit shall lose the exemption and may not resume auto wrecker operations at the same business address and/or location as another permitted auto wrecker business. Each owner may only operate auto wreckers which are permitted to him in response to any call for service from the police department. Sec. 57 238236. - Twenty -four-hour service. 15 Owner and wrecker company who hold a rotation list permit shall maintain sufficient personnel and auto wreckers to provide twenty -four-hour a day auto wrecker service. Each owner and wrecker company shall have at least one (1) telephone number which is answered twenty-four (24) hours a day. Sec. 5743-9237. - Vehicle storage facility; attendant at business address and storage area. An auto wrecker rotation list permit shall be issued only to an owner who has a properly zoned vehicle storage facility at its business address which meets the following requirements: (a) The storage area shall be completely enclosed with a wire or wooden fence at least six (6) feet in height or as required by the zoning ordinance, whichever requirements are greater, including a gate which is locked at all times when the owner, an agent or employee is not at the storage area. The fence shall be continuously maintained in good condition. (b) The storage area shall have an all-weather surface such as concrete, asphalt, black -top, stone, macadam, limestone, iron ore, gravel, caliche, or shell that enables the safe and effective movement of stored vehicles upon all portions of the lot, both under their own power and under tow, at all times, regardless of prevailing weather conditions. The surface shall also be free of overgrown vegetation. (c) The storage area shall have a sign at the entrance which is clearly readable from the street setting out the name of the auto wrecker business, the street address, correct telephone number, and the hours vehicles will be released to vehicle owners. (d) The storage area shall have a sign setting out the per diem charge for storage and all other fees which may be charged by the owner. This sign shall be clearly visible to a vehicle owner prior to the payment of any fees. (e) Owner shall maintain adequate illumination levels throughout the vehicle storage facility which shall not be less than 250 -watt element for each one-quarter (1/4) acre of storage area. (f) Owner, his employee, or agent shall be at the auto wrecker business address and shall have access to the vehicle storage facility, and all vehicles stored there, during normal business hours. A person who works at the vehicle storage facility must be licensed by the Texas Department of Licensing and Regulation and must produce the license upon request of the chief of police. The vehicle storage facility attendant must have the authority to release vehicles. (g) Owner shall have a publicly listed phone which is answered at the business address during normal business hours using the name permitted to owner. Use of an answering service which places the police dispatcher on hold, an answering machine or voice mail is prohibited. (h) The police dispatcher shall not be placed on hold to answer other incoming calls. Placing the police dispatcher on hold prior to obtaining all pertinent information may subject the owner to being moved to the bottom of the rotation list at the chief of police discretion. 16 (i) Owner must provide at least five (5) days' written notice to the chief of police before the business address or phone number is changed. Sec. 57-240238. - Inspection of vehicle storage facility. Prior to the issuance of an auto wrecker rotation list permit, the chief of police or his designee shall inspect the vehicle storage area to determine that it meets the provisions of section 57- 23237 and that it is reasonably secured to protect stored vehicles against theft and vandalism. The inspector shall also check with the department of planning to ascertain whether the storage area is located in a zoning district which allows auto wrecker businesses and vehicle storage facilities. Any auto wrecker company which holds a permit issued under this chapter shall permit inspection of its vehicle storage facility at any time deemed necessary by the chief of police. Failure to permit inspection within eight (8) hours of a request by the chief of police or his designee shall be deemed grounds for revocation of permit. Sec. 57-244239. - Prerequisite to towing impounded or disabled vehicles. (a) No auto wrecker shall winch, right, or tow any vehicle which exceeds the auto wrecker's weight limitations, except in case of an emergency as determined by a certified peace officer at the scene. (b) Rotation list or incident management tow. Impounded vehicles towed by police -initiation off the rotation list shall be taken to the city impound lot. Disabled vehicles shall be taken to the wrecker's vehicle storage facility. The auto wrecker dispatched for a rotation list or incident management tow shall be the next scheduled rotation wrecker, unless the owner or driver of the vehicle to be towed requests the on -scene police officer to send another permitted auto wrecker prior to the time the next scheduled rotation wrecker is dispatched to the scene. (c) Consent tow. The auto wrcckcr dispatched for a consent tow shall be the next scheduled rotation wrecker unless the vehicle owner or driver: (1) Personally calls an auto wrcckcr of his/her preference; or (2) A not for hire wrecker belonging to the owner may be called by the owner for a consent tow. (d) No vehicle shall be towed by an auto wrecker which does not display a Texas tow truck plate, a Texas license plate, and a City of Corpus Christi wrcckcr permit decal. ($(c) In a situation where safety or time dictates otherwise, the peace officer on the scene may direct actions inconsistent with these requirements. Sec. 57 242240. - Transfer of disabled vehicles by wrecker not under permit. No disabled vehicle shall be moved by any auto wrecker not permitted unless the owner or driver of said disabled vehicle personally calls an auto wrecker of his own preference prior to the time that the next scheduled rotation wrecker has been dispatched to the scene and the response time is within thirty (30) minutes. Sec. 57 243241. - Dispatching in rotation. 17 (a) The chief of police shall establish an equitable rotation list system comprised of all auto wrecker companies holding auto wrecker rotation list permits, where each wrecker company is dispatched in rotation to a police -initiated or incident management tow. No police officer or dispatcher shall cause any auto wrecker to go to the scene of a disabled or impounded vehicle other than the next scheduled rotation wrecker unless: (1) The the closest wrecker is sent because:a.An an extreme emergency situation exists. where a human life is at stake; or b. An accident has blocked a traffic lane on the Harbor Bridge, Nucces Bay Causeway, JFK Bridge or causeway, Interstate Highway 37, State Highway 77, State Highway 286, State Highway 358, State Highway 11/358 interchange, or the respective highway access road (2) The owner or driver of a disabled or impounded vehicle wants to use another auto wrecker than the next scheduled rotation wrecker and requests that company prior to the next scheduled rotation wrecker being dispatched to the scene. (b) If the owner or driver of a disabled vehicle wants to use an auto wrecker company other than the next scheduled rotation wrecker not on the rotation list, the owner or driver must contact that company directly but not through the police officer or dispatcher. (c) No police officer shall suggest or recommend that the owner or driver of a disabled vehicle call any auto wrecker company other than the next scheduled rotation wrecker. E)(c) However, in a situation where safety or time indicates otherwise, the peace officer on the scene may direct actions inconsistent with these requirements. Sec. 57-244242. - Soliciting wrecker business on city streets prohibited; presence at scene of collision as prima facie evidence of violation. (a) A person commits an offense if: (1) The person arrives at the scene of a traffic accident or an incident to perform a nonconsent or incident management tow of a motor vehicle without first being contacted by the police department or vehicle owner; (2) The person directly or indirectly solicits, on streets located in the city, towing services, including towing, removing, repairing, wrecking, storing, trading, selling, or purchasing related to a vehicle that has been damaged in an accident to the extent that it cannot be normally and safely driven; or (3) The person enters the scene of a traffic accident, an incident, or other area under the control of a peace officer without the permission of the peace officer. (b) The presence of any auto wrecker company vehicle or employee that was not dispatched by the police department or requested by the vehicle owner at or near the scene of an accident in the city after the accident or prior to the removal of all disabled vehicles shall be prima facie evidence of solicitation in violation of this section. 18 Sec. 57 245243. - Responding to calls. (a) Each owner or wrecker company on the rotation list shall have sufficient personnel, equipment, and auto wreckers to respond to all tow assignments given by the police dispatcher. Response time shall not exceed thirty (30) minutes after the police dispatcher's notification of the assignment. (b) The owner, his agent or employee shall not refuse an assignment except for safety reasons or if all owner's auto wreckers are already performing other police tow work. If the owner, his agent or employee refuses an assignment, he must notify the police dispatcher of the reason. Documentation may be required if the reason is auto wrecker equipment failure or prior tow work. (c) If an owner or wrecker company fails to respond or refuses an assignment, the police chief may revoke or suspend the wrecker company or owner's auto wrecker rotation list permit. (d) A revocation or suspension may be appealed in the manner set out in section 57 233231. Sec. 57446244. - Removal of wreckage and debris, etc., at the scene of an accident. The owner shall completely remove from an accident scene all resulting wreckage and debris, including all broken glass and metal fragments, before leaving the scene. This debris shall be properly disposed of, and shall be removed to the extent that the debris will not enter the gutters, storm sewers, streams, and public rights-of-way. Property not belonging to the auto wrecker company shall be collected and removed from the scene but shall not be disposed of without the property owner's prior consent. Sec. 57 247245. - Notice of location of storage facility. (a) If the vehicle owner or driver of a disabled vehicle is at the scene and capable of receiving information, wrecker company shall notify the vehicle owner or driver of the disabled vehicle by giving him or her a fee schedule and a card which notifies him or her that the disabled vehicle will be towed to owner's vehicle storage facility unless the vehicle's owner or operator requests that the vehicle be towed elsewhere. (b) The card shall contain the business's name, address, phone number, hours during which the vehicle can be reclaimed, and a statement that there will be charges for all services provided. (c) Failure to provide the card and fee schedule may result in revocation or suspension of probation of owner's auto wrecker or rotation list permit, which may be appealed as set out in section 57 233231. Sec. 57448246. - Auto wrecker drivers. (a) An auto wrecker driver must hold a driver's license and at least eighteen (18) years of age, and must be trained, in accordance to the licensed by the Texas Department of Licensing and Regulation, in the use and operation of any specialized equipment to be used in towing 19 disabled and impounded vehicles for the police department. Non rotation drivers must hold either Incident Management Tow Operator License or Private Property Tow Operator License and rotation auto wrecker driver must have an Incident Management Tow Operator License. (b) An auto wrecker driver must be familiar with the city road system in order to promptly (c) The chief of police may request documentation of training or demonstration of a potential driver's ability to tow a disabled or impounded vehicle and/or test his/her knowledge of the city roadway system prior to approving a driver. For rotation wrecker companies, drivers are required to complete continuing education courses approved by the Texas Department of Liccnsing and Regulation. (d) Only approved auto wreckers drivers may perform towing operations and operate permitted auto wreckers. An invoice with an unapproved auto wrecker driver will not be paid by the police department. (e) (b) For rotation wrecker list, owner and wrecker company shall require drug and alcohol tests of drivers who will be new to the rotation wrecker list and must submit drug and alcohol test results to the chief of police (test results must be from a test taken within ninety (90) days from the date of expected employment) and the following information at least five (5) working days before the expected employment of an auto wrecker driver: (1) Driver's full name, including any aliases; (2) Date of birth; (3) Social Security number; (4) Copy of current Texas and all other states driver's licenses issued to the driver within five (5) years prior to the submission of the application; (5) Current address and each address where driver has resided in the ten (10) years prior to the application; (6) Whether driver has been arrested for any criminal offense in this state or any other state or country, the date of the arrest or confinement, and the place, court and case number; (7) Evidence that the applicant has passed a drug screening test administered within fifteen (15) days preceding the date of the application; (8) Driver must submit himself or herself at such times and places designated by the police chief or his designee to be photographed and fingerprinted; (9) Complete any forms required by the chief of police or his designee to obtain or perform criminal history or background check; and (10) Such other information as the chief of police or his designee finds relevant. 20 The chief of police shall conduct a criminal history or background check on all auto wrecker drivers and send a written approval or denial, within ten (10) working days, to the owner or wrecker company indicating whether the driver is eligible to operate an auto wrecker. The chief of police shall investigate or cause to be investigated the character, experience, and qualifications of the driver's in order to determine the driver's fitness to operate an auto wrecker consistent with the public safety and welfare, and shall consider whether approving the driver would constitute an unreasonable risk to the public safety and welfare. The chief of police shall consider whether the driver has been guilty of a criminal act directly related to the occupation of auto wrecker. In determining whether the criminal act directly relates to said occupation, the chief of police shall consider: a. The nature and seriousness of the crime; b. The relationship of the crime to the operating an auto wrecker, for example, the following are deemed to have such a relationship because of the danger to the public and their property and potential for criminal activities enhanced by the large number of public contacts: i. Theft and other crimes of dishonesty, ii. Assaultive and harassment crimes, iii. Solicitation of prostitution, iv. Sexual abuse crimes, v. Crimes of alcohol or drug abuse, or vi. Traffic offenses; c. The extent to which the approval might offer an opportunity to engage in further criminal activity of the same type; d. The extent and nature of the past criminal activity; e. The age of the driver when the crime was committed; f. The amount of time elapsed since the driver's last criminal activity; g. The conduct and work activity of the person prior to and following the criminal activity; h. Evidence of rehabilitation efforts; i. Other evidence of personal fitness submitted by the driver such as recommendations from prosecution, law enforcement, correctional officers. (0 (c) For rotation wrecker companies, owner or wrecker company shall submit the above required driver's information on all drivers to the chief of police semiannually on June 1 and December 1. Owner shall notify the chief of police within five (5) working days after termination of any driver. 21 (g) (d) For rotation list wrecker companies, no auto wrecker may be operated by any driver who has received three (3) moving violations or traffic citations within the preceding twelve-month period, unless all three (3) violations arose out of one (1) incident. Unless directed otherwise by a police officer, auto wrecker driver shall adhere to all traffic regulations. (.lam) (e) For rotation list wrecker companies, owner shall require each driver to submit to an alcohol and drug testing in accordance to Chapter 2308 of the Occupations Code and Chapter 86 of the Texas Department of Licensing and Regulation Administrative Rules and shall submit the results to the chief of police within five (5) working days. Drivers are required to sign a consent form authorizing the test and permitting release of test results to the Corpus Christi Police Department. The failure or refusal by a driver or applicant to cooperate fully by signing necessary consent forms or other required documents or the failure or refusal to submit to any test or any procedure under this chapter in a timely manner will be grounds for denial, revocation or suspension of permit. The submission by a driver or applicant of a urine sample that is not his/her own or is a diluted specimen shall be grounds for denial, revocation or suspension of permit. (r) ff For rotation list wrecker companies, owner shall inform the chief of police in writing of any towing operator convicted (including pleas of guilty and nolo contendere) of any offenses listed in this section within five (5) working days of the conviction. (g) For rotation list wrecker companies, owner shall notify the chief of police, within fifteen (15) days, in writing, of any changes to driver's home address. Scc. 57 249_ Reassembly of parts. Whenever it is necessary to disassemble parts to a vehicle in order to tow said vehicle, the owner or wrecker company shall reassemble such parts upon reaching his storage facility if requested by the vehicle owner or if the vehicle is to be reclaimed by the vehicle owner. Sec. 57-2441247. - Storing wreckers on public streets or rights-of-way prohibited. No owner shall store any disabled vehicle or auto wrecker on the public streets or rights-of-way. Sec. 57 251248. Assignments vehicle, the assignment will include how many and what category of auto wrecker shall be sent to the scene. The owner, his agent or employee will advise the police dispatcher how many of its Each owner may only operate auto wreckers which are permitted to them in response to any call for service for a rotation wrecker. Owner shall not refer an assignment to another auto wrecker company, even if the owner owns the other company. Any such referral may result in revocation or suspension of owner's auto 22 wrecker permit, which may be appealed as set out in section 57 233231, at the chief of police discretion. On category B wrecker assignments, the primary (on call) or personally requested wrecker company is in charge of handling the incident. This includes the use of other wreckers and/or specialized equipment. If an auto wrecker is not at owner's business location, or if an auto wrecker has been assigned to address at the time of the police dispatcher's call, an auto wrcckcr is not available for being assigned a new scene. Neither owner nor his agents or employees shall drive a disabled or impounded vehicle which they have been assigned to tow, except for the loading and unloading of a vehicle onto or off a wrecker. Scc. 57 252. Officcr at the scene. whenever practical. Scc. 57 253. Emcrgcncy dispatchcs. No auto wrcckcr shall be dispatched on an emergency run without a police escort. Sec. 57-2-54249. - Maximum auto wrecker service and storage fees. The following towing fees shall be paid by the person reclaiming the towed vehicle: (a) Police -initiated nonconsent rotation list or incident management tow fees will be paid to the city at the city vehicle impound lot. (b) All other fees will be paid to the auto wrecker company according to that company's policy. (c) If a vehicle owner or operator pays a drop fee and the police officer at the scene authorizes the release of a vehicle after an auto wrecker has arrived at the scene and started physically attaching the vehicle to the auto wrecker but before the vehicle has been towed from the location, then the auto wrecker owner or driver shall release the vehicle. (d) Maximum towing, storage and administrative fees. 1. All permitted wreckers other than rotation list category B wreckers Category A auto wrecker: a. Normal rotation list non -consent tow (includes double hook up and towing of truck and trailer as one unit $110.00 150.00 b. Private property impound $ 115.00145.00 c. Drop fee 50.00 d. Tire change rather than use dollies: i. One tire 15.00 23 ii. Two tires 20.00 Required use of dollies, go jacks or skates 30.00 d. Four wheel drive tow truck utility fee $75.00 (remote beach / off-road tows only) e. Additional labor such as winching for removal from a ditch or water, righting an overturned vehicle or for similar unusual circumstances (all inclusive) 30.00 f. Total maximum towing fee including the use of dollies and additional labor, but excluding additional time at the scene and unusual distance: Rotation list tow 170.00 255.00 Private property impound tow 145.00 g. Additional fee for each half-hour or portion thereof at the scene in excess of one-half hour not caused by delay on the part of the permit holder, per 30 minutes 15.00 25.00 h. Unusual distance charge: i. Additional fee for a tow originating from the arca within city limits west of Callicoatc Road to US 77 5.00 Additional fee for a tow originating from US 77/IH 37 and from the area within city limits west of US 77/IH 37 15.00 25.00 iii. Additional fcc for a tow originating from the arca within city limits cast of the JFK Causeway to Fish Pass 5.00 iii. Additional fee for a tow originating from the area within city limits east of the JFK Causway Bridge to Port Aransas city limits 15.00 25.00 i. Cleanup only, no tow required 35.00 60.00 (debris only, not including hazardous material clean ups) 2. Category B auto wreckers: a. Normal rotation list Nnonconsent tow (includes double hookup and towing of tractor and trailer as one unit, removal of shaft or axle, application of air to brake system, and/or caging brakes, to prepare for tow) 325.00 475.00 b. Additional fee allowed in subsection 57-25450 (d)(2)(a) includes rigging up, winching for removal from ditch or water, righting an overturned vehicle, clean up, or for similar unusual circumstances, per hour 275.00 350.00 c. Private property impound (include double hookup and towing of tractor and trailer as one unit, removal of shaft or axle, application of air to brake system, and additional labor such as cleanup, winching for removal from ditch or water, righting an overturned vehicle, pulling an axle or for similar unusual circumstances) 100.00 520.00 24 d. Additional costs (specialized equipment such as crane, backhoe, fork lift, air bag recovery system) actual cost (within industry standard) for leasing or renting equipment plus a maximum of twenty-five (25) -per cent up charge. 3. Daily storage fees: Storage for all or part of the first 24 hours, and for each subsequent 24-hour period or part thereof: a. Recovered stolen vehicles 5.00 b. Vehicles not longer than 25 feet 20.00 c. Vehicles longer than 25 feet 35.00 4. Impoundment fee for any action that is taken by or at the direction of the owner or operator of the facility and is necessary to preserve, protect, or service a vehicle stored or parked at the facility 20.00 5. Notification fees for: Vehicle registration research, certified letters, newspaper advertisements and preparation necessary to inform the last registered owner and lien holder(s). Can be charged only if actually performed 50.00 (e) Multiple vehicles. 1. When a vehicle and trailer are both towed by one (1) auto wrecker, only one (1) towing fee shall be paid to the owner. If the vehicle and trailer are too large or too heavy to be safely towed by a single wrecker, another wrecker may be used and an additional fee charged. 2. When more than one (1) vehicle is transported by one (1) auto wrecker, e.g., motorcycles or parts of vehicles, only one (1) towing fee shall be paid to owner. (f) Invoices. 1. Each customer invoice shall include the owner's company name, business address and phone number, permit number, name of the auto wrecker who performed the specific assignment being invoiced, date and time of assignment, date and time assignment completed (i.e., delivery of the vehicle), hours when vehicles can be reclaimed, and an itemized statement of charges. A fee schedule listing the maximum towing, storage, etc. fees shall be attached to each tow invoice. 2. The city shall provide each owner with the basic fee schedule copies to attach to the consent tow customer invoices. Failure to attach the fee schedule shall be grounds for revocation or suspension of owner's permit, unless the vehicle owner or agent consents to the omission. 3. Only service provided by an auto wrecker permitted under an auto wrecker or rotation list permit number shall be invoiced to that permit; service provided under any other permit number other than the permit number under which it is billed is in violation of this article and shall be grounds for revocation of the permit. 25 4. Owner shall invoice the police department for nonconsent (impound) or incident management tows, which shall include an itemized statement of charges and an explanation of all charges above the normal towing only fee. 5. The chief of police will review each invoice and either approve, reject or modify charges for services rendered. (g) An auto wrecker company and owner shall charge no fees for servicing a police initiated nonconsent or incident management tow in excess of the fees authorized under city ordinance for vehicles towed. Further, the auto wrecker owner shall not obligate the vehicle owner in a nonconsent or incident management tow to pay any fees in excess of those authorized for a vehicle delivered to a state licensed vehicle storage facility without the consent of the vehicle owner. The chief of police may require the auto wrecker owner or wrecker company to reimburse the vehicle owner or operator for any overcharges or unauthorized charges. Any overcharges or unauthorized charges shall be reimbursed to vehicle owner within five (5) business days, and the chief of police may suspend the auto wrecker company permit if it fails to comply. Sec. 57-250. Disposition of property left in towed vehicles. Upon request of an individual demonstrating ownership or right to possession of a vehicle, a vehicle storage facility shall give that individual access to a vehicle in the facility and allow removal of any personal property left in the towed vehicle, unless otherwise indicated by a law enforcement officer. All such personal property must be surrendered to the property owner regardless of whether or not any or all fees associated with the towing or storage of the vehicle have been paid. "Personal property" for purposes of this section refers to property in the vehicle which is not permanently affixed to the vehicle. The vehicle storage facility must request a receipt from the person to whom the personal property is released for any such property removed from the stored vehicle. Nothing in this provision is intended to conflict with the provisions of 16 Tex. Admin. Code § 85.708. Sec. 57-2S6251. - Cease and desist order. The chief of police may issue a cease and desist order as necessary to enforce this article if the chief of police determines the action is necessary to prevent a violation of this article and to protect public health and safety. Sec. 57 257252. - Logs required to be kept for tow. Each wrecker company on the rotation list shall keep a record of each vehicle towed for the rotation list, the make, model, color, license number of said vehicle, the name of the person requesting the pull, the location where the vehicle was picked up, and the location where deposited. This log of rotation tows will be open to the police department inspection at any time. It shall be unlawful for a wrecker company or owner to fail or refuse to produce this log to the police department for inspection. Sec. 57-253. - Photographs for Private Property Tows 26 All wreckers conducting private property tows shall photograph the vehicle to be towed from multiple angles and the signs posted prior to hookup in order illustrate conditions warranting the tow and to demonstrate compliance with State laws. All photographs must be maintained for inspection by the City for one year following the tow. Sec. 57 258254. - Towing fee study (a) In this section, a "towing fee study" is a study to determine the fair market value of a non -consent tow originating in the city, considering financial information provided to the city by the wrecker company requesting the study. (b) A wrecker company may request that the city conduct a towing fee study by filing a written request with the city manager by certified mail, return receipt requested, or by hand delivery. (c) Within ninety (90) days after the filing of an initial request, additional wrecker companies may join the request by filing written requests in accordance with subsection (b). (d) The city shall conduct a towing fee study if the initial requestor and the additional requestors, if any: (1) Accounted for not less than fifty (50) per cent of the non -consent tows performed in the city during the preceding twelve-month period, as determined by the city manager; and (2) Deposit with the city manager a fee of five thousand dollars ($5,000.00). (e) If the towing fee study is not conducted the city shall refund the fee, less an administrative fee of five hundred dollars ($500.00). (f) Each wrecker company requesting the towing fee study shall cooperate with the city to conduct the study and such wrecker company shall provide to the city information determined by the city manager to be reasonably necessary to determine the fair market value of towing services regulated under this article. (g) The city shall complete a towing fee study not later than the 180th day after receiving all information required under subsection (f). (h) The city manager shall present to the city council the results of the towing fee study. The city manager shall give each wrecker company that owns or leases auto wrecker registered with the city written notice of the time, date, and location of the city council meeting at which the study is to be considered. The notice must be sent by United States regular mail to the wrecker company's address listed in the latest registration application on file with the chief of police. (i) Based on the results of the towing fee study, the city council may change the non -consent towing fees. The maximum fees must represent the fair market value of the services of a wrecker company performing non -consent tows originating in the city. (j) The city is not required to conduct more than one (1) towing fee study within a two-year time period, measured from the date the city council most recently considered a towing fee study. Sec. 57-255. - Notification to permit holders of pending changes to permit regulations. Holders of permits under Article V of this chapter of the City Code shall be notified by the City of Corpus Christi of any pending changes in Article V. 27 SECTION 2. This ordinance takes effect after official publication. SECTION 3. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 4. Penalties are as provided in Section 1-6 of the Code of Ordinances. SECTION 5. Publication shall be made one time in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. 28 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of January 13, 2015 Second Reading Ordinance for the City Council Meeting of January 20, 2015 DATE: TO: FROM: December 8, 2014 Ronald L. Olson, City Manager Floyd Simpson, Chief of Police floyds@cctexas.com 886-2604 Accepting and appropriating a grant for the Internet Crimes Against Children (ICAC) Task Force program CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Office of Juvenile Justice and Delinquency Prevention Internet Crimes Against Children (ICAC) Task Force program, in the amount of $19,800 to purchase equipment, supplies, and training travel for the ICAC program within the Police Department; and appropriating the $19,800 in the No. 1061 Police Grants Fund. PURPOSE: Accept the grant and appropriate the funds. BACKGROUND AND FINDINGS: The Office of Juvenile Justice and Delinquency Prevention Internet Crimes against Children Task Force program has approved a grant for the Corpus Christi Police Department Internet Crimes Against Children Task Force. The Police Department has been a member of the ICAC since 2003. These funds will be used for the purchase of equipment, supplies, and training travel. There is no match required by the City. Funds are available from December 1, 2014 through May 31, 2015. 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: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $19,800 $19,800 BALANCE $19,800 $19,800 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 Office of Juvenile Justice and Delinquency Prevention Internet Crimes Against Children (ICAC) Task Force program, in the amount of $19,800 to purchase equipment, supplies, and training travel for the ICAC program within the Police Department; and appropriating the $19,800 in the No. 1061 Police Grants Fund. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. The City Manager or designee is authorized to execute all documents necessary to accept a grant from the Office of Juvenile Justice and Delinquency Prevention Internet Crimes Against Children (ICAC) Task Force program, in the amount of $19,800 to purchase equipment, supplies, and training travel for the ICAC program within the Police Department. SECTION 2. That $ $19,800 is appropriated from the Office of Juvenile Justice and Delinquency Prevention Internet Crimes Against Children (ICAC) Task Force Program in the No. 1061 Police Grants Fund to purchase equipment, supplies, and training travel for the ICAC program within the Police Department. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM Future Item for the City Council Meeting of January 13, 2015 Action Item for the City Council Meeting of January 20, 2015 DATE: TO: FROM: December 4, 2014 Ronald L. Olson, City Manager Floyd Simpson, Chief of Police floyds@cctexas.com 886-2603 Amending Chapter 2 and 6 of the Code of Ordinances to modify the animal care ordinance CAPTION: Amending Chapter 2 and Chapter 6 of the Corpus Christi Code to reassign Animal Care Services roles and responsibilities; to designate the Animal Care Services Manager as the Local Rabies Control Authority; to establish a fee schedule; authorizing waiver of fees; providing Animal Control Service Manager authority to prohibit dangerous dogs within the City; eliminating $25 refund for sterilization of adopted animals; prohibiting traps with holding mechanisms; to modify the name of Animal Control Advisory Committee; to modify the ex officio members; to designate the Animal Care Advisory Committee as the Animal Shelter Committee; Providing for severance; Providing for publication; Providing for penalty; and Providing an effective date. PURPOSE: The animal care ordinance needed updating. The main goal of the current fee schedule is not to increase fees, but to simplify the fee schedule. The last time fees were changed was 1994. BACKGROUND AND FINDINGS: The changes to the ordinance are: • Transfers control of Animal Care Service and Vector Control to the Police Department • Designates the Animal Care Manager as the Local Rabies Authority • Grants Animal Care Manager authority to prohibit dangerous dogs • Designates the Animal Control Board as the Animal Shelter Committee • Changes the name of Animal Control Advisory Committee to Animal Care Service Committee • Modifies the ex officio membership to the Animal Control Advisory Committee • Creates a fee schedule (see attachment) • Authorizes waiver of fees for adoption events • Eliminates the $25 refund for sterilization of adopted animals • Prohibits traps with holding mechanisms ALTERNATIVES: None OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2013- 2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 0 Encumbered / Expended Amount 0 This item 0 BALANCE 0 Fund(s): General Comments: RECOMMENDATION: Staff recommends supporting changes to the ordinance. LIST OF SUPPORTING DOCUMENTS: Ordinance Proposed fee schedule The proposed fee schedule for Corpus Christi Animal Care Services & Vector Control. Sec. 6-14. Reapplication upon denial of registration or permit Current Proposed Reapplication upon denial of reg. or permit 10.00 10.00 Sec. 6-27. Fees. Licensing Fees Current Proposed (1)Each spayed or neutered dog or cat lyr vaccine 4.00 6.00 (2)Each dog or cat not spayed or neutered lyr vaccine 12.00 6.00 (1) Each spayed or neutered dog or cat 3yr vaccine 10.00 12.00 (2) Each dog or cat not spayed or neutered 3yr vaccine 12.00 12.00 Sec. 6-29. Issuance and wearing of tag Current Proposed Replacement of tag 5.00 6.00 Sec. 6-32. Dangerous dog registration Current Proposed Dangerous dog registration * Set by §822.043 Health and Safety Code *50.00 *50.00 Sec. 6-54. Fees (Permits) Current Proposed Auctions 100.00 50.00 Circuses 200.00 50.00 Grooming Shops 25.00 50.00 Guard Dogs - Single dog/single site 50.00 50.00 Guard Dogs - Multiple dogs/single site 75.00 50.00 Guard Dogs - Multiple sites / one dog 125.00 50.00 Kennels - Authorized less than ten (10) animals 50.00 50.00 Kennels - Authorized between ten (10) and fifty (50) animals 75.00 50.00 Kennels - Authorized fifty-one (51) or more animals 125.00 50.00 Performing Animal Exhibit 25.00 50.00 Performing Animal Exhibition 200.00 50.00 Pet Stores 50.00 50.00 Authorized between ten (10) and twenty-five (25) horses 75.00 50.00 Authorized twenty-six (26) or more horses 125.00 50.00 Sec. 6-103. Impoundment Current Proposed Unregistered, not sterilized 75.00 25.00 Unregistered, sterilized 50.00 25.00 Registered, not sterilized 50.00 25.00 Registered and sterilized 25.00 25.00 Livestock, weighing less than 100 pounds 25.00 25.00 Livestock, weighing 100 pounds or more 50.00 25.00 Second and subsequent impoundment within 12 months: Animals, excluding livestock - Not sterilized 75.00 50.00 Second and subsequent impoundment within 12 months: Animals, excluding livestock - Sterilized 50.00 50.00 Second - Livestock, weighing less than 100 pounds 50.00 50.00 Second - Livestock, weighing 100 pounds or more 100.00 50.00 Sec. 6-103 (D)(2) Boarding Fees Per Diam Current Proposed Daily boarding fees (Return to Owner) 6.00 10.00 Rabies vaccine fee (Return to Owner) 8.00 10.00 Microchip fee (Return to Owner) 25.00 10.00 Species appropriate vaccination on intake (excludes rabies Return to Owner) 0 10.00 Adoption Fe Current Proposed Domestic dog or cat *For animals over 6 months old and in good health - Includes spay/neuter, microchip, rabies vaccination, city license (if applicable) Varies *25.00 Sec. 6-104. Small animal traps Current Proposed Rental fee for small traps 10.00 10.00 Required refundable deposit of fifty dollars 50.00 No Deposit -Billed $75.00 if trap is lost or damaged Sec. 6-105. Dead animal pick-up service fee a service fee per visit of five dollars ($5.00) for the first three (3) dead animals, then five dollars ($5.00) for each 5.00 first 3 5.00 each additional 5.00 each animal Sec. 6-127. Rabies impoundment and quarantine Current Proposed Animal head shipment — stray animal 75.00 75.00 Animal head shipment — owned animal 75.00 75.00 Quarantine fee of domestic animal *This fee will be in addition to impound, microchip, license, and rabies vaccination fees. 90.00 flat fee *20.00 per day Sec. 6-128. Spay/neuter clinic fees 11111 Current Proposed Spay/neuter clinic fees *ACS no longer runs a public spay/neuter clinic to the general public. All associated fees should be deleted. Varies *Delete Targeted Spay/neuter clinic fees *Charging grant for surgery/vaccination package within a targeted area. 0 *50.00 Ordinance Amending Chapter 2 and Chapter 6 of the Corpus Christi Code to reassign Animal Care Services roles and responsibilities; to designate the Animal Care Services Manager as the Local Rabies Control Authority; to establish a fee schedule; authorizing waiver of fees; providing Animal Control Service Manager authority to prohibit dangerous dogs within the City; eliminating $25 refund for sterilization of adopted animals; prohibiting traps with holding mechanisms; to modify the name of Animal Control Advisory Committee; to modify the ex officio members; to designate the Animal Care Advisory Committee as the Animal Shelter Committee; Providing for severance; Providing for publication; Providing for penalty; and Providing an effective date. Whereas, pursuant to Health and Safety Code §826.017, City Council shall designate an officer to act as the local rabies control authority for purposes of Chapter 826 Health and Safety Code. Whereas, pursuant to Health and Safety Code §823.005, City Council shall appoint an advisory committee to assist in complying with the requirements of the Chapter 823 Health and Safety Code. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Chapter 6, Section 1 Definitions, is amended as follows: Animal Care Officer means the Animal Care Services division manager, employees of the Animal Care Services division, or authorized agents of Animal Care Services. Animal Care Services means a division of the Dcpartmcnt of Public Health Corpus Christi Police Department responsible for enforcing state and local laws, ordinances, rules, and regulations regarding the care and keeping of animals, including the provisions of this chapter. At large or running at large means any animal within the city not kept under restraint. Circus means a commercial variety show featuring animal acts for public entertainment. City Health Officer mcans the director of the Department of Public Hcalth for the city or the director's designee. City animal shelter means a place operated by or for the city, whether in city facilities or by contract, for the detention of dogs, cats, and other animals as prescribed by law. SECTION 2. Chapter 6, Section 3 Animal care services division and manager, is amended as follows: (a)The Animal Care Services division is a unit of the Department of Public Hcalth Corpus Christi Police Department and is in the charge of a person having suitable qualifications and designated by the city as the Animal Care Services manager. (b)In addition to the duties specifically prescribed in this chapter, it is the responsibility of the Animal Care Services manager to execute other duties under the jurisdiction of the Department of Public Hcalth Police Department as the gity Hcalth Officcr Chief of Police may delegate. SECTION 3. Chapter 6, Section 6 Regulations is amended as follows: Regulations providing for the interpretation and enforcement of this chapter may be adopted by the City Hcalth Officer Corpus Christi Police Department and Animal Care Services. The regulations are effective after review at a public meeting held by the Animal Control Advisory Committee. A copy of the regulations will be kept on file in the city secretary's office. SECTION 4. Chapter 6, Section 8 Compliance with sanitation standards required for keeping animals, is amended as follows: The owner of any animal within the city and the holder of any commercial permit issued under this chapter must comply with the standards of sanitation established by the City Hcalth Officer Chief of Police under this chapter. SECTION 5. Chapter 6, Section 10 Inspection of animals and premises, is amended as follows: Animals and premises where animals are kept or maintained are subject to inspection by the City Hcalth Officcr, thc City H Ith Officcr's dcsigncc Animal Care Services manager, an Animal Care Officer, or any police officer at any reasonable hour, or at any hour in cases of emergency. SECTION 6. Chapter 6, Section 11 Abatement of conditions not complying with chapter, is amended as follows: Whenever any premises where animals are kept are in an unsanitary condition, the facilities are not in keeping with the provisions of this chapter or any regulations established by the City Hcalth Officcr Chief of Police, or if any health ordinance or law pertaining to the care or keeping of an animal is not observed, the City Hcalth Officcr or thc City Hcalth Officcr's designcc Animal Care Services 2 Manager or designee, by written notice to the person responsible for the condition of the premises or the keeping of the animals or to the person owning or in control of the premises, may order the abatement of the conditions which are not in accordance with this chapter other regulations or laws, or which constitute a nuisance. Failure to comply with the written notice constitutes grounds for the city to obtain relief by injunction. Additionally, failure to comply with the written notice may subject the violator to administrative proceedings and criminal charges. SECTION 7. Chapter 6, Section 15 is created to read as follows: Sec. 6-15. Fee Schedule The Animal Care Services Manager shall prepare the initial schedule of all fees to be charged to the public for the provision of services, permits, and registrations under this Chapter. This initial schedule must be reviewed by the city manager and is effective upon the city manager's approval. Each successive schedule is subject to the same review and approval requirement on an annual basis. Such fees may not increase annually by more than twenty-five (25) percent nor may new fees be created without city council's approval by motion or resolution. Each approved schedule must be filed with the city secretary and copies provided to the city council. SECTION 8. Section 6-16 of the Corpus Christi Code of Ordinances is created to read as follows: Sec 6-16 Waiver or Reduction of Fees The Animal Care Services Manager is authorized to reduce or waive fees for adoption events or where necessary to advance the goals of Animal Care Services. SECTION 9. Section 6-17 of the Corpus Christi Code of Ordinances is created to read as follows: Sec. 6-17 - Local rabies control authority. (a) The Animal Care Services Manager is designated as the local rabies control authority to enforce the provisions of the Rabies Control Act of 1981 (V.T.C.A., Health and Safety Code § 826.001 et seq.). (b) The duties of the local rabies control authority shall include but are not limited to the enforcement of: (1) The provisions of the Rabies Control Act of 1981, and the rules of the state board of health which comprises the minimum standards for rabies control; (2) The ordinances and/or rules of the City of Corpus Christi; and/or 3 (3) The rules adopted by the state board of health under the area quarantine provisions of V.T.C.A., Health and Safety Code § 826.045 of said Act. SECTION 10. Chapter 6, Section 27 Fees, is amended as follows: (a)The annual registration fee for a dog or cat that has been currently vaccinated with a manufactured one-year or three-year interval rabies vaccination is established in the fee schedule pursuant to section 6-15 of this chapter. as follows: (2)Each dog or cat not spaycd or ncutcrcd 12.00 (b)The fee for a three-year registration for a dog or cat that has been currently vaccinated with a manufactured three-year interval rabies vaccination is established in the fee schedule pursuant to section 6-15 of this chapter. as follows: 22 (c)No fee may be charged for a registration issued for any dog actually used by a person with disabilities who utilizes the dog as a service animal to aid the person in going from place to place within the city. (d)No fee may be charged for a registration issued for any dog that is owned and used by any law enforcement agency for drug awareness, drug or bomb detection, or any other law enforcement purpose. (e)Participating veterinarians will be rcbatcd retain one dollar ($1.00) for each registration they issue if duplicate copies of the registration and vaccination certificates are submitted to the Animal Care Services division within ten (10) days of issuance of the registration. SECTION 11. Chapter 6, Section 29 Issuance and wearing of tag, is amended as follows: (a)Issuance. Upon acceptance of the dog or cat registration application and payment of the applicable fee, the city's collections section, the Animal Care Services manager, Animal Care Services manager's designee, or the participating veterinarian will issue a durable registration tag, stamped with a serial number and the year of issuance. (b)Wearing of tag. Dogs and cats must wear registration tags fastened to a collar or harness at all times. (1)It is presumed, in a prosecution of a violation of this subsection, that a dog or cat that is determined by an Animal Care Officer or a police officer to be without a registration tag fastened to its collar or harness while in a public place within the city has not been vaccinated in compliance with this chapter. 4 (2)It is presumed, in a prosecution of a violation of this subsection, that a dog or cat that is determined by an Animal Care Officer or a police officer to be without a registration tag fastened to its collar or harness while in a public place within the city has not been registered in compliance with this chapter. (c)Replacement of tag. A duplicate registration tag may be obtained from the Animal Care Services division upon payment of a fivc dollar ($5.00) replacement fee established in the fee schedule pursuant to section 6-15 of this chapter and proof of presentation of the original registration receipt. For animals administered a rabies vaccination through the Animal Care Services division for which the vaccine remains effective, a duplicate rabies vaccination tag may be obtained from the division upon payment of a fivc dollar ($5.00) replacement fee established in the fee schedule pursuant to section 6-15 of this chapter. (d)Nontransferable. No person may use any registration tag for any animal other than the animal for which it was issued. SECTION 12. Chapter 6, Section 32 Dangerous dog registration, is amended as follows: (a)A dog found to be a "dangerous dog" as defined in Chapter 822, Health and Safety Code, as it may be amended, must wear a dangerous dog registration tag issued annually by the Animal Care Services division upon a payment of a the maximum fee allowed fora dangerous doq registration under Chapter 822, Health and Safety Code, as it may be amended. The dangerous doq registration fee is listed in the fee schedule pursuant to section 6-15 of this chapter. (b)A dangerous dog registration tag must be worn at all times by the dangerous dog attached to a lime green colored, one -inch -wide collar. (c)The owner of a dangerous dog shall present proof of the secure enclosure in which the dog will be kept, proof of liability insurance coverage or financial responsibility in an amount of at least one hundred thousand dollars ($100,000.00) to cover damages that may result from an attack by the dangerous dog causing bodily injury to a person, and proof of compliance with other conditions as may be required by the City Hcalth Officcr Animal Care Services Manager and as may be required under Chapter 822, Health and Safety Code, as it may be amended. (d) The Animal Care Services manager may require a dangerous doq to be removed from the city limits. SECTION 13. Chapter 6, Section 51 General provisions, is amended as follows: (f) A commercial permit must be displayed in a prominent place on the premises. 5 (g) In addition to all other conditions of this article, owners and possessors of dogs defined as "guard dogs" under this chapter must meet all applicable provisions of this chapter and regulations promulgated by the Manager Animal Care Services Manager. (h) No commercial animal establishment may sell any dog or cat four (4) months of age or older to any person unless the animal has a valid rabies vaccination. SECTION 14. Chapter 6, Section 52 Application, is amended as follows: (b) Upon initial application for a permit, the Animal Care Services Manager or designee must review and certify that the commercial animal establishment has been inspected and is in compliance with all construction, zoning, or other ordinances of the city governing the conduct of the business of the commercial animal establishment after consulting with the Building Official and Zoning and Code Enforcement Administrator. An appropriate certificate of occupancy issued by the building official may be considered as evidence that the commercial animal establishment complies with the city's construction and zoning ordinances. SECTION 15. Chapter 6, Section 54 Fees, is amended as follows: (a) Annual Fees for commercial permits are established in the fee schedule pursuant to section 6-15 of this chapter. as follows: Auctions $100.00 Circuses 200.00 Dcpartmcnt Storcs 50.00 Grooming Shops 25.00 Guard Dogs: Single dog/single site 50.00 Multiplc dogs/singlc sitc 75.00 Multiple sites with one (1) dog 125.00 Kenncls: Authorizcd Icss than tcn (10) animals 50.00 Authorizcd betwccn tcn (10) and fifty (50) animals 75.00 Authorizcd fifty one (51) or morc animals 125.00 P crforming Animal Exhibit 25.00 P crforming Animal Exhibition 200.00 Pct Storcs 50.00 Pctting Zoos (tcmporary; Tess than tcn (10) days) 50.00 Rodcos 200.00 Stablcs: Authorizcd Icss than tcn (10) horscs 50.00 Authorizcd bctwccn tcn (10) and twcnty fivc (25) horscs 75.00 Authorizcd twcnty six (26) or morc horscs 125.00 6 (b)Any commercial animal establishment providing services classified in two (2) or more categories listed in subsection (a) of this section is required to obtain only one (1) permit, and the fee charged for the permit is the highest of the fees for any of the applicable categories. SECTION 16. Chapter 6, Section 57 Permission to possess prohibited animals, is amended as follows: (b) Possession of a prohibited animal under this section is exempt from the terms of section 6-153 and is subject to regulations and rules prescribed by the City Hcalth Officer Animal Services Manager, including, but not limited to, indemnification of the city, proof of insurance, and any other conditions deemed necessary to preserve the health, safety, and welfare of the public. SECTION 17. Chapter 6, Section 58 Waiver of requirements, is amended as follows: A waiver of a portion or all of the permit requirements of this article may be granted by the City Hcalth Officcr or thc City Hcalth Officcr's dcsigncc Animal Care Services Manager in cases involving a scientific or educational program, a show or exhibition by a nonprofit organization, or for animals owned by the City upon a finding that a waiver would not endanger the public's health, safety, or welfare, an animal's health, or create a nuisance. SECTION 18. Chapter 6, Section 76 Registration and permit revocation—Administrative proceedings, is amended as follows: (a)When held. (1)Thc City Hcalth Officcr or thc City Hcalth Officcr's dcsigncc The Animal Care Services Manager or designee may hold an administrative hearing to determine whether any registration or permit issued under Article II or Article III of this chapter should be revoked or to otherwise regulate the keeping of an animal within the city, if: (A) A registration or permit holder fails or refuses to comply with any provision of this chapter, the regulations promulgated by the gity Hcalth Officcr Animal Care Services Manager or any law governing the protection and keeping of animals in this state. (B) The owner of an unregistered animal, the owner of an unvaccinated animal, or the owner of a commercial animal establishment not properly permitted under this chapter fails or refuses to comply with any provision of this chapter, the regulations promulgated by the City Hcalth Officcr Animal Care Services Manager, or any law governing the protection and keeping of animals in this state. (C) An animal has been involved in an unprovoked biting offense and the incident involved bodily injury to a person; (D) An animal has been determined by an Animal Care Officer to be a public nuisance; or (E) An animal has been the subject of two (2) criminal charges brought against the animal's owner under this chapter that resulted in conviction of the animal's owner, of two (2) impoundments, or a combination of one such conviction and one impoundment, resulting from separate incidents, within the twenty -four-month period immediately preceding the date of the last conviction or impoundment. Impoundments which occurred as a result of provoked scratching, biting, or attacking incidents may not be considered for purposes of this subsection (b)Written notice required. (1) An administrative hearing may not be held without giving the registration or permit holder, owner of a commercial animal establishment operating without a permit, or owner of an unregistered animal prior written notice of the date, time, and place of the hearing. (2) Written notice is deemed made when a certified letter, return receipt requested, addressed to the address indicated on the holder's last registration or permit application or, if no such application is on file, to the owner's last known address, is deposited in the U.S. mail. Written notice is also deemed made when the notice letter is delivered by an employee or representative of the City Hcalth Officcr Animal Care Services Manager to the address. (3) All persons on the register kept by a stable for which an administrative hearing will be held will be notified by certified mail deposited in the U.S. mail or by personal delivery made by an employee or representative of thc City Hcalth Officcr Animal Care Services Manager that a hearing is to take place. (c) Disposition. At the conclusion of the administrative hearing, the City Hcalth Officcr or the City H Ith Officcr's dcsigncc The Animal Care Services Manager or designee shall determine if the person holding the registration or permit, the owner of a commercial animal establishment operating without a permit, or the owner of an unregistered animal has violated any provision of this chapter, the regulations promulgated by the City Hcalth Officcr Animal Care Services Manager, or any law governing the protection and keeping of the animal that is the subject of the administrative hearing. If any violation has been found to have occurred, the City Hcalth Officer or thc City Hcalth Officcr's dcsigncc Animal Care Services Manager or designee, in their discretion, may order that any of the following actions be taken within the time specified by the City Hcalth Officcr or thc City Hcalth Officer's dcsignec: Animal Care Services Manager or designee: SECTION 19. Chapter 6, Section 103 Impoundment, is amended as follows: 8 (a) Grounds for impoundment. Animals may be impounded by the Animal Care Services division in any of the following circumstances: (1)Any dog not kept under restraint as required by this chapter. (2)Any dog or cat not wearing a collar or harness affixed with a valid city registration tag. (3)Any dog or cat for which a valid city registration has not been issued. (4)Any animal that constitutes a public nuisance. (5)Any animal that a person could reasonably suspect as having any infectious or contagious disease other than rabies and being in the custody of a keeper who fails or refuses to make arrangements satisfactory to the Animal Care Services manager for the proper treatment of the animal. (6)Any animal that has rabies or exhibits symptoms of rabies, or that a person could reasonably suspect as having rabies. (7)Any animal, when unprovoked, that bites, scratches, or otherwise attacks another animal or person within the city. (8)Any animal not kept by the owner or permit holder in conformity with this chapter, regulations promulgated by the City Hcalth Officer Chief of Police or Animal Care Services Manager, disposition made in accordance with Article IV of this chapter, or state law. (9)Any animal upon the written request of the animal's owner and to which the Animal Care Services manager or the Animal Care Services manager's designee agrees that the animal be humanely euthanized for the protection of the public's health, safety, and welfare. (10)Any dog that is the subject of a cause of action filed pursuant to Chapter 822, Health and Safety Code, as it may be amended, must be impounded until further order of a court of proper jurisdiction. (11) Any free-roaming cat that has not been spayed or neutered. (b) Length of impoundment. Except for dogs impounded as subjects or probable subjects of a proceeding pursuant to Chapter 822, Health and Safety Code, for observation of rabies under section 6-127, or other administrative procedures, impounded animals not claimed must be kept for not less than three (3) working days from date of impoundment. In calculating the length of this time period, the first working day after impoundment is considered day one. (c) Notification of owner. If, by a registration tag or other means, the owner of an impounded animal can be identified, the Animal Care Services division shall, as soon as practicable after impoundment, notify the owner in person or by telephone, if reasonably possible, and, if not, then by mail, advising that, if the impounded animal is not redeemed within five (5) working days, disposition will be made in accordance with this chapter. (d) Redemption. Impounded animals, excluding those impounded as a public nuisance, a prohibited animal, or an animal held for observation of rabies under section 6-127 or other administrative procedures, are subject to immediate redemption. Impounded animals may be redeemed by anyone 9 entitled to possession of the animals while the animals are in the city animal shelter after paying the appropriate fees as follows: (1) Impoundment fee: Impoundment fees are established in the fee schedule pursuant to section 6-15 of this chapter. (A) First impoundmcnt: Animals, cxcluding livcstock: Unregistered, not sterilized $ 75.00 Unrcgistcrcd, stcrilizcd 50.00 Registered, not sterilized 50.00 Rcgistcrcd and stcrilized 25.00 Livcstock, weighing Icss than 100 pounds 25.00 Livcstock, wcighing 100 pounds or morc 50.00 (B) Second and subsequent impoundment within 12 months: Animals, cxcluding livcstock: Not sterilized 75.00 Stcrilizcd 50.00 Livestock, weighing Icss than 100 pounds 50.00 Livcstock wcighing 100 pounds or morc 100.00 (C) (A) If an animal is sterilized within thirty (30) days of release following the animal's first impoundment, the veterinarian performing the sterilization will be reimbursed twenty-five dollars ($25.00) of the impoundment fee upon submission of a copy of the sterilization invoice. (D) (B) A waiver or partial waiver of an impoundment fee may be granted by the City Hcalth Officer Animal Care Services Manager in cases involving exigent circumstances as determined-ate published annually by thc City Hcalth Officcr. by the Animal Care Services Manager. (2) Boarding charge. A boarding charge determined published and sct annually by thc City Hcalth Officcr, established in the fee schedule pursuant to section 6-15 of this chapter is not to exceed the reasonable cost of boarding, feeding, and caring for the animal for the period of impoundment. A copy of the boarding chargc schcdulc, sctting out thc annual ratcs, will be placcd on filc with thc City Sccrctary's Officc. Boarding charges apply to redemption of impounded animals and are not applicable to adoption of animals. (3) Rabies vaccination charge. All charges for rabies vaccination if required. (4) City registration charge. City registration charge, if applicable. (5) Microchip charge. All charges associated with placement of a microchip, unless the animal currently has an active microchip. (e)Redemption—special circumstances. In case any animal that is impounded is sought to be redeemed and is suffering from any disease or ailment, it may not be released until the Animal Care Services Manager is satisfied that arrangements looking to its proper treatment are assured. Animals put under observation as described in section 6-23 are subject to redemption no less than 10 ten (10) days from impoundment if the animal is determined to be free from rabies by the Animal Care Services Manager or designee. (g)Disposition of animals. (1)Immediately upon impoundment, the city is the designated caretaker of impounded animals. Except as provided in subsections (c) and (j) of this section, and certain livestock as provided for in this paragraph, impounded animals not redeemed by their owner within three (3) working days following impoundment become the property of the city and may be placed for adoption in a suitable home or with any nonprofit association organized for the protection and welfare of animals, sold under section 17 /I 17-6 of the Code of Ordinances, or humanely euthanized. Prior to the disposition of any livestock excluding goats and sheep, notice must be posted for a ten-day period at the county courthouse, city hall, and the city animal shelter upon the expiration of three (3) working days from the date of impoundment of the livestock. Upon the expiration of the ten-day notice period, the city may dispose of the livestock in the same manner as other unclaimed animals. (2)The expiration of the three (3) working days period upon impoundment and the notice of and expiration of the ten-day period with respect to livestock does not apply to the disposition of any animal placed in impoundment by the written consent of the animal's owner and the acceptance of the animal by the animal care services manager. Any animal received by the consent of its owner may be disposed of immediately upon its impoundment in the same manner as unclaimed animals. (3)In the case of a dog impounded under authority of V.T.C.A., Health and Safety Code chapter 822, as it may be amended, or other state law, the dog may be redeemed upon the court's finding and rendering a judgment that the dog did not engage in dangerous conduct and upon the conclusion of any proceeding provided for in this chapter; or upon the court's finding that the dog did engage in dangerous conduct, that the claimant of the dog shows proof of having fully complied with all insurance and restraint requirements provided by state law, and meets all requirements of this chapter that pertain to the keeping of a dangerous dog. (4)Due to their immature immune system, any impounded animal under four (4) months of age shall immediately become the property of the city, for humane disposition, and may be offered for adoption, rescue, foster care or humanely euthanized at the discretion of the animal care service manager, veterinarian, or their designee. (h)Adoption of unclaimed animal. A person other than the previous owner may adopt an unclaimed animal after the expiration of the redemption period and after paying any applicable boarding chargcs and rabics vaccination rcgistration, rabies vaccination fees, registration fees, spay/neuter fees, and adoption fees established in the fee schedule pursuant to section 6-15 of this chapter. and signs A person adopting an 11 unclaimed animal must sign an agreement to have the animal sterilized within thirty (30) days of adoption, in compliance with V.T.C.A., Health and Safety Code ch. 828, if the animal is unsterilized at the time of adoption. All adoptions and approval of applications for adoption are at the discretion of the Animal Care Services Manager. If an animal is sterilized within thirty (30) days of adoption, then a twcnty fivc dollar ($25.00) rcfund will bc paid to thc vctcrinarian performing thc stcrilization, upon application by thc vctcrinarian within thirty (30) days aftcr thc scrvicc is performed. (i)Compliance required for release. No impounded dog or cat may be released until the person to whom the dog or cat is to be released agrees and meets all regulations promulgated by the City Hcalth Officcr Animal Care Services Manager. (j)Euthanasia. The Animal Care Services Manager, a licensed veterinarian, or the Animal Care Services manager's designee may direct the immediate euthanization of any animal determined to be seriously injured or diseased under the rules, guidelines, or procedures established by the City Hcalth Officcr Animal Care Services Manager. Impounded animals not redeemed or adopted as provided for in this section must be humanely euthanized at the city animal shelter under the direction of an Animal Care Services Officer. The carcasses must be disposed of as directed by the City Hcalth Officcr Animal Care Services Manager. (k)Records. The Animal Care Services manager shall cause to be maintained a record describing each identifiable animal impounded within the preceding two (2) years. In the case of registered dogs and cats, the registration tag number and the name of the person to whom it was issued must be noted. In the case of each identifiable animal, it must be noted how the impounded animal was disposed of, giving the names and addresses of persons to whom the animal was delivered, and the fees and charges received from the persons. (I)Notice of violation. In addition to, or in lieu of, impounding an animal under this section, an Animal Care Services Officer or any police officer may issue to the owner of the animal a citation for a violation of this chapter. SECTION 20. Chapter 6, Section 104 Small animal traps, is amended as follows: Small animal traps will be rented by the Animal Care Services division to a citizen for a charge established in the fee schedule pursuant to section 6-15 of this chapter of tcn dollars ($10.00). This rental fee provides for the use of a trap for seven (7) calendar days. Thcrc is a requircd rcfundablc dcposit of fifty dollars ($50.00) prior to thc rcntal of a trap. The following arc cxcmpt from thc rcntal fcc and dcposit: low incomc citizcns bclow thc povcrty Icvcl as cstablishcd by thc U. S. Dcpartmcnt of Hcalth and Human Scrviccs; providcd, howcvcr, in ordcr to obtain such an cxcmption on thc fcc and dcposit, thc cxcmptcd citizcn shall bc rcquircd to statc in a writtcn agrccmcnt that hc/shc is cntiticd to thc cxcmption. 12 There is a fifty dollar ($50.00) replacement charge established in the fee schedule pursuant to section 6-15 of this chapter for all small animal traps that are lost, stolen, or otherwise damaged rendering the trap unusable by the Animal Care Services division rcgardlcsv of cxcmption status for rcntal fccs and dcposit. SECTION 21. Chapter 6, Section 105 Dead animal pick-up service fee, is amended as follows: From participating local commercial businesses, a service fee per visit of five dollars ($5.00) for the first thrcc (3) dcad animals, thcn five dollars ($5.00) for ach d d animal thercafter established in the fee schedule pursuant to section 6-15 of this chapter will be collected for each dead dog, cat, or small animal upon pick up of the animal by the city. The maximum weight of any animal picked up under this section may not exceed one hundred (100) pounds. The disposal of any dead animal weighing over one hundred (100) pounds will be handled in accordance with the provisions of Chapter 21 of the Code. SECTION 22. Chapter 6, Section 106, is created to read as follows: Sec. 6-106 Traps with holding mechanisms prohibited; exceptions No person shall set up or allow to be set up on his property steel jaw traps, spring traps with teeth or perforated edges on the holding mechanism, snares, or any type of trap with a holding mechanism designed in such a fashion as to reasonably ensure the cutting, slicing, tearing or otherwise traumatizing of the entrapped prey, for the purpose of ensnaring domestic or wild animals within the city limits, unless the use of such traps is specifically deemed necessary by the director of health or Local Rabies Control Authority in or for the control of communicable disease. This section is not to be construed to include those traps designed to kill common rodents, i.e., rats, mice, gophers and groundhogs; except that the owner is responsible for taking care that any of the above said "rodent" traps are not placed or used on or about his property in such a manner as to reasonably ensure the trapping of any other domesticated or wild animal, or of a human. SECTION 23. Chapter 6, Section 127 Rabies impoundment and quarantine, is amended as follows: (a)Impoundment. Every animal that has rabies or symptoms of rabies or that a person could reasonably suspect as having rabies and that bites, scratches, or otherwise attacks any person or animal within the city must be impounded at once and held for observation and quarantine at the city animal shelter or other place designated by the City Hcalth Officer Animal Care Services Manager for the period of time the City Hcalth Officcr Animal Care Services Manager may deem necessary; provided, however, the period of time may not be fewer than ten (10) days nor more than fourteen (14) days. 13 (b)Prohibited from being on public ways, places. No animal that has rabies may be allowed at any time on the streets or public ways of the city. No animal that has been suspected of having rabies may be allowed at any time in public places, except as expressly provided in this chapter until the animal has been released from observation by the City Hcalth Officer Animal Care Services Manager, Local Rabies Control Authority or Licensed Veterinarian. (c)Owner's responsibility. The owner of any animal that is reported to have rabies, or symptoms of rabies, or to have been exposed to rabies, or to have scratched, bitten, or otherwise attacked any person or animal within the city, or that the owner knows or suspects to be rabid and to have scratched, bitten, or attacked any person or animal shall submit the animal for quarantine to the Animal Care Services manager, an Animal Care Officer, or any police officer. Failure of an owner to submit the animal, as required by this subsection, is a violation of this chapter. (d)Reporting of incidents. Any persons having knowledge of any animal exhibiting symptoms of or exposed to rabies, or that has scratched, bitten, or otherwise attacked any person or animal, shall report the incident to the Animal Care Services division no later than ten (10) days from the date of the incident. The report must include the name and address of any victim and of the owner of the animal, if known, and any other information relating to the incident or animal. The Animal Care Services manager shall inform the City Health Officer at once, in person or by phone, and follow up with a written report. (e)Veterinarians' reports. Every veterinarian or other person who is called to examine or professionally attend any dog or other animal within the city having glanders or farcy, rabies, tuberculosis, or any other communicable disease shall, within twenty-four (24) hours thereafter, report in writing to the City Health Officer and the Animal Care Services manager the following: (1)The location of the animal. (2)The name and address of the owner of the animal. (3)The type and character of the disease. (f)Veterinarians'records. Every veterinarian practicing within the city shall keep detailed records of animal rabies vaccinations and, upon request of the Animal Care Services Manager, must acknowledge to the Animal Care Services Manager whether an animal of a particular location, or owned by a named person, has bccn vaccinatcd within the last twclvc (12) months current unexpired vaccination. (g)Investigation of cases. The City Hcalth Officcr Animal Care Services Manager or designee shall investigate and record all cases of rabies and suspected rabies. (h)Disposition of bodies of quarantined animals. The body of any animal that has died of rabies or that dies or is destroyed while in quarantine may not be disposed of except as directed by the City Hcalth Officer Animal Care Services Manager. (i)Payment of costs. (1) The owner of an animal quarantined under this section shall pay to the Animal Care Services division the reasonable costs of the quarantine and 14 disposition of the animal, including charges for preparation, processing, and shipment of the animal's head or brain, if required, to the nearest Texas Department of State Health Services laboratory for testing. The fee for preparation, processing, and shipment, by the Animal Care Services division, of the animal's head or brain is established in the fee schedule pursuant to section 6-15 of this chapter scvcnty five dollars ($75.00). (2)The owner of a non -quarantined animal or a veterinarian, if required by law or upon the owner's or a veterinarian's request, may seek the services of the Animal Care Services division to prepare, process, and ship the head or brain of an animal to the nearest Texas Department of State Health Services laboratory for testing. (a)If the head or brain is prepared by a veterinarian for processing and shipment by the Animal Care Services division, the person requesting the service shall pay a fee to the Animal Care Services division as established in the fee schedule pursuant to section 6-15 of this chapter of fifty dollars ($50.00). (b)If the head or brain is prepared by the Animal Care Services division for processing and shipment, the person requesting the service shall pay a fee to the Animal Care Services division as established in the fee schedule pursuant to section 6-15 of this chapter of seventy five dollars ($75.00). SECTION 24. Chapter 6, Section 128 Spay/neuter clinic fees, is amended as follows: The director of public hcalth Animal Care Services Manager shall prepare the initial schedule of fees to be charged to the public for the provision of services at the city's low-cost spay/neuter clinic. This initial schedule must be reviewed by the city manager and is effective upon the city manager's approval. Each successive schedule is subject to the same review and approval requirement on an annual basis. Such fees may not increase annually by more than twenty-five (25) per cent nor may new fees be created without city council's approval by motion or resolution. Each approved schedule must be filed with the city secretary and copies provided to the city council. SECTION 25. Chapter 6, Section 153 Keeping of certain animals prohibited, is amended as follows: No person may keep, own, maintain, use, or have in the person's possession or on premises under the person's control, within the city, any of the following: (a) Any dangerous animal, except in accordance with this chapter and the regulations promulgated by the City Hcalth Officer Animal Care Services Manager. 15 SECTION 26. Chapter 6, Section 157 Exceptions to distance and number requirement regulations is amended as follows: (a) Laboratories, veterinarians, and others listed. Where livestock or fowl are kept in medical laboratories or educational institutions for medical research, in veterinary hospitals for treatment, or on the premises of any recognized humane society for humane care, the livestock or fowl must be kept under conditions prescribed by the City Hcalth Officer Animal Care Services Manager for the limited purposes stated in this subsection without the necessity of compliance with the distance and number requirements prescribed in this chapter. (b) Pet shops. Pet shops keeping all animals in completely enclosed and solidly walled facilities need not comply with the distance and number requirements prescribed in this chapter. (c) Exempted premises in newly annexed area. Where any animal is being kept at a location outside the city limits and, by annexation, the area becomes a part of and within the boundaries of the incorporated area of the city, the distance and number requirements do not apply for a period of five (5) years from and after the date of annexation. Extensions of this exemption may be obtained for successive five-year periods by applying for and obtaining a certificate from the City Hcalth Officcr Animal Care Services Manager certifying to the existence of sanitary conditions of the premises and neighboring premises. (d) Homing pigeons. Homing pigeons may be kept in a number not exceeding sixty (60) so long as there is no opposition from contiguous neighbors, they are kept in accordance with the rules and regulations promulgated by the City Hcalth Officer Animal Care Services Manager and they are kept in accordance with subsection 6-153(e) and all other provisions of this chapter. SECTION 27. Chapter 6, Section 236. Inspection, is amended as follows: (a)The director of public hcalth Animal Care Services Manager or designee shall have the right to inspect any apiary between the hours of 8:00 a.m. and 5:00 p.m. Presence of an apiary constitutes consent to the director or his/her designee to enter the premises. Where practicable, prior notice shall be given to the beekeeper if he resides at the apiary or if his name is marked on the hives. 16 SECTION 28. Chapter 6, Section 237 Compliance, is amended as follows: a)Upon receipt of information that any colony situated within the city is not being kept in compliance with this article, the dircctor of public hcalth Animal Care Services Manager shall cause an investigation to be conducted. If he/she finds that grounds exist to believe that one (1) or more violations have occurred he/she shall cause a written notice of hearing to be issued to the beekeeper. (b)The notice of hearing shall set forth: (1)The date, time and place at which the hearing will be conducted; (2)The violation(s) alleged; (3)That the beekeeper may appear in person or through counsel, and present evidence; and (4)That the bees may be ordered destroyed or removed from the city if after the hearing the dircctor of public hcalth Animal Care Services Manager finds that they have been kept in violation of this article. Notices shall be given by certified U.S. mail or personal delivery. However, if the director of public health Animal Care Services Manager is unable to locate the beekeeper, then the notice may be given by publication one (1) time in a newspaper of general circulation at least five (5) days prior to the date of the hearing. (c)The hearing shall be conducted by the director of public health Animal Care Services Manager or a hearing officer that he/she may designate. The burden shall be on the city to demonstrate by a preponderance of credible evidence that the colony or colonies have in fact been kept in violation of this article. If the hearing officer finds that the colony or colonies have been kept in violation of this article then he/she may order that the bees be destroyed or removed from the city, within a period not to exceed twenty (20) days, and that bees shall not thereafter be kept upon the tract for a period of two (2) years. In instances where the hearing officer finds that the violations were not intentional and that the beekeeper has employed corrective actions that will probably be effective to cure the violations alleged, then he/she may issue a warning in lieu of ordering the bees destroyed or removed. Upon failure of the beekeeper to comply with the order the director of public hcalth Animal Care Services Manager may cause the bees to be destroyed and the hive structures to be removed. In each instance in which a bee colony is destroyed all usable components of the hive structure that are not damaged or rendered unhealthy by the destruction of the bees shall upon the beekeeper's request be returned to the beekeeper, provided that the beekeeper agrees to bear all transportation expenses for their return. SECTION 29. Chapter 2, Section 51 Administrative functions, is revised as follows: (10) Gas. An administrative department responsible for the development, maintenance, and operation of a gas utility system. 17 (11) Health. An administrative department responsible for the promotion of public health; air pollution control; animal and vector control; industrial health; vital statistics; and support services for the citizens advisory health board, animal control advisory board, and food service advisory council. The director of this department shall be appointed, and is removable, by the joint action of the city council acting through the city manager and the commissioners' court of Nueces County. The director shall also serve as the health officer of the city. (12) Housing and community development. An administrative department responsible for improving the living environment of residential neighborhoods; rehabilitation of dilapidated buildings; the elimination of blighted areas in the city; and support services for the building standards board. (23) Planning. An administrative department responsible for development of master plans and other planning, zoning, and subdivision activities; development of capital improvement programs; and support services to the planning commission, municipal arts commission, landmark commission, and joint airport zoning board. (24) Police. An administrative department responsible for animal and vector control, support services for the animal control advisory committee, the prevention and investigation of crime, the apprehension of suspected criminals and the enforcement of traffic laws. (25) Public utilities. An administrative department responsible for the management of utilities -related functions in the city as provided by the organizational chart, and the operation of a commercial office to service such utilities. SECTION 30. Chapter 2, Section 115 Created; composition; appointment, terms of members; organization, of the Corpus Christi Code of Ordinances is hereby amended as follows: An Animal Control Care Advisory Committee is hereby created consisting of seven (7) members. Initially, two (2) members shall be appointed for one-year terms, two (2) for two (2) years and three (3) for three (3) years; thereafter, such terms will be three (3) years. At least one (1) member shall be a veterinarian. Two (2) members shall be members of local animal welfare organizations (at least one (1) of the organizations must operate an animal shelter). The remaining four (4) members shall represent the community at large. All members shall serve until their successors are appointed and qualified. Each member shall be a resident of the city. 18 (1) Ex officio members. The city manager, or representative; the Dircctor of thc City County Hcalth Dcpartmcnt or rcprescntativc1 and the Animal Control Supervisor Care Services Manager shall serve as an ex officio member of the committee without vote. (2) Officers. Following the annual appointment of new members, the committee shall meet at its earliest convenience and shall, by majority vote, elect a chair who shall preside at all meetings of the committee and a vice -chair who shall preside in the absence of the Chair. The Dircctor of thc City County Hcalth Departmcnt Animal Care Services Manager or designated representative shall serve as the secretary of the committee and shall send all notices for meetings, keep and preserve the minutes, have custody of all documents filed with the committee, advise and consult with city officials as to the committee's work and recommendations, assist the committee and its subcommittees in planning and coordinating its programs, and perform such other duties as may be of assistance to the committee. A copy of the minutes shall be sent to all members. (3) Subcommittees. The chair of the committee, with the approval of the committee, may establish such subcommittees as may be necessary or appropriate to assist the committee in its studies and in the performance of its duties. Members of such subcommittees shall be appointed only from among members of the committee. (4) Meetings. The committee shall meet at least once each month and shall meet on the call of the chairperson of a majority of its members. The committee shall adopt its own rules of procedure of notice of meetings and the conduct thereof. (5) Quorum. Four (4) members shall constitute a quorum. SECTION 31. Chapter 2, Section 117 of the Corpus Christi Code of Ordinances is hereby created to read as follows: Sec. 2-117. Animal Shelter Committee (a) The Animal Care Advisory Committee is designated as the Animal Shelter Committee required by the Health and Safety Code. (b) The duties of the Animal Shelter Committee shall include, but are not limited to, assisting Animal Care Services in complying with: (1) The standards of housing and sanitation as established by the Health and Safety Code and the rules of the state board of health; and (2) standards of animal control officer training as established by the Health and Safety Code. 19 (c) The Animal Shelter Committee advisory committee shall meet as required per state law. SECTION 32. 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 33. Publication shall be made one time in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 34. Penalties are as provided in Section 1-6 of the Code of Ordinances. SECTION 35. This ordinance takes effect after official publication. 20 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM First Reading for the City Council Meeting of January 13, 2015 Second Reading for the City Council Meeting of January 20, 2015 DATE: November 11, 2014 TO: Ronald L. Olson, City Manager FROM: Michael Armstrong, Chief Information Officer MichaelAR@cctexas.com (361) 826-3740 Dan Grimsbo, Director, Development Services DanG@cctexas.com (361) 826-3595 First Reading Ordinance — Purchase of electronic plan review solution from Bentley Systems, Inc. CAPTION: Ordinance appropriating $236,104 from the Unreserved Fund Balance in the Development Services Fund No. 4670 for the purchase of Bentley electronic plan review software; changing the FY 2014-2015 Budget adopted by Ordinance No. 030294 to increase expenditures by $236,104; authorizing the City Manager, or designee , to execute contract with Bentley for electronic plan software, with the total amount of the fixed price agreement of $286,104; authorizing the City Manager, or designee, to execute amendment to Master Contract with Bentley Systems, Inc. for implementation of an electronic plan review solution. PURPOSE: To provide and implement electronic plan software in Development Services that is compatible with and integrated with the Infor CDR (Community Development Regulation) software currently being implemented by the City. The integration of this software must begin soon to ensure implementation occurs in a timely manner and is coordinated with the Infor CDR implementation. The software currently used by the department will be eliminated after the implementation process. BACKGROUND AND FINDINGS: SunGuard (formerly HTE), the existing, stand-alone software that the City is currently using to process and schedule Development Services' permitting, licensing, building inspections, and code enforcement was purchased and implemented in 2002 and included electronic submission capabilities. The City is in the process of replacing the SunGuard product with Infor CDR. Infor CDR does not include the electronic plan review capability that is needed by the City. The purchase of Bentley electronic plan review software will allow Capital Programs, Utilities and Street Department to complete on-line plan submission, plan review and mark-up for both Building Permitting and Land Development activities. ALTERNATIVES: Denial or alteration of the proposed purchase of Bentley electronic plan review software, services, and support. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: The proposed purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. Bentley is listed on the GSA Schedule and the City has an existing SELECT Program Agreement with Bentley Systems, Inc. (CLA No. 14576635) for software utilized in Utilities. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Municipal Information Systems Department Development Services Department Finance & Purchasing Department FINANCIAL IMPACT: Z Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $286,104 $ $286,104 Encumbered / Expended Amount This item $286,104 $ $286,104 BALANCE Fund: Development Services Fund, Water and Wastewater Utilities Funds Comments: RECOMMENDATION: Staff recommends approval of the ordinance as presented. LIST OF SUPPORTING DOCUMENTS: Ordinance Bentley Systems, Inc. Proposal Ordinance appropriating $236,104 from the Unreserved Fund Balance in the Development Services Fund No. 4670 for the purchase of Bentley electronic plan review software; changing the FY 2014-2015 Budget adopted by Ordinance No. 030294 to increase expenditures by $236,104; authorizing the City Manager, or designee, to execute contract with Bentley for electronic plan software, with the total amount of the fixed price agreement of $286,104; authorizing the City Manager, or designee, to execute amendment to Master Contract with Bentley Systems, Inc. for implementation of an electronic plan review solution. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. That $236,104 is appropriated from the Unreserved Fund Balance in the Development Services Fund No. 4670 for the purchase of the Bentley electronic plan review solution. Section 2. That the FY 2013-2014 Operating Budget adopted by Ordinance No. 030294 is changed to increase expenditures by $236,104. Section 3. That the City Manager or designee is authorized to execute an agreement with Bentley Systems, Inc., to purchase software and services to implement an electronic plan review solution in accordance with the terms and conditions of the SELECT Program Agreement between Bentley and the City (CLA No. 14576635). And, in accordance with the provisions set forth on the signature page of the SELECT Program Agreement, to approve new SELECT Program Agreement which shall otherwise supplement the existing SELECT Program Agreement, and shall be effective thirty (30) days after delivery to the City. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor n Bentley BENTLEY SYSTEMS, INCORPORATED SELECT PROGRAM AGREEMENT Bentley SELECT NORTH AMERICA 2L Bentley SELECT Agreement CLA Number )1115q (0(�}5 Ihis SELECT Program Agreement (together with all exhibits and attachments hereto as in effect from time to tune, the "Agreement") is made as of the. Effective Date by and between Bentley Systems, Incorporated, a Delaware corporation with its principal office and place of business at 68) Stockton Drive, Exton, Pennsylvania 19341; and the subscriber identified below ("Subscriber") All references herein to "Bentley" include Bentley Systems, Incorporated and its direct and indirect subsidiaries Subscriber desires to enter into this Agreement to subscribe to the Bentley SELEC T® Program ( SELECT Program') to acquire licensing privileges and services offered from time to time under the SELECT' Program, all as more fully described in the lettered exhibits attached hereto Subscriber, upon signing this Agreement; is bound by the terms of this Agreement and Exhibits A and B .hereto Subscriber shall be bound by any amended or supplemental exhibit provided by Bentley upon Subscriber's license ot purchase of products of services to which such amended or supplemental: exhibits apply. The lettered exhibits attached to this. Agreement are incorporated herein and made a part ot this Agreement, assuch exhibits may be updated; amended and supplemented with : additional : exhibits from time to time upon Chitty (30) days after delivery through electronic or other' means to the Subscriber; provided, that: as to particu lar products and services licensed or Purchased hereunder', Subscriber shall be bound by the form of the exhibits m effect at the time the products or services are licensed 01 provided. Upon any renewal of this Agreement, the updated, amended or supplemented exhibits m effect at the time of such renewal, if any, shall be applicable to all licensing privileges and services under the SET EC1 Program provided from and after the date of such renewal, Notwithstanding the foregoing, unless Bentley and Subscriber agree otherwise by a writing duly executed by authorized representatives of the parties, no amendment or supplement to the exhibits to this Agreement after any perpetual license: purchase shall limit or impair the rights of Subscriber under the perpetual license teams and conditions m effect at the time such license is acquired, For definitions of the capitalized terms used in this Agreement and the Exhibits hereto, see Section 1 of the General 'Ter ms and Conditions included as Exhibit' B„ The term of this Agreement is set forth in the General 'Terms and Conditions under` the caption "Term; Termination .."The terms of all Product licenses acquired hereunder shall be as set forth in Section 5 of Exhibit A to this Agreement and all Product licenses .hereunder are subject to the termination provisions applicable to such licenses in Section 5 of Exhibit A to this Agreement and in the General Teams and Conditions. Subscribers may not use the licenses, services and other benefits provided under this Agreement for purposes of developing software applications for distribution outside of their organization or for providing end-user training on Bentley Products other than to internal: end users.. If your organization falls into either of the foregoing prohibited categories, .then please contact Bentley about other progtams that are better suited for your business BY SIGNING BELOW, SUBSCRIBER ACKNOWLEDGES THAT, IHROUGH 1TS AUTHORIZED REPRESENIAIIVES, IT HAS READ AND UNDERSTANDS THIS AGREEMENT (INCLUDING ALL ATTACHED EXHIBITS), AGREES TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED HEREIN AND HAS 'THE: AUTHORITY TO ENTER INTO THIS AGREEMENT. SUBSCRIBER IS NOT ENTERING INTO THIS AGREEMENT ON THE BASIS OF ANY REPRESEN'TA'TIONS NOT EXPRESSLY SET FORTH HEREIN. A FULLY EXECUTED COPY: OF THIS AGREEMENT WILL BE RETURNED TO SUBSCRIBER AFTER THIS AGREEMENT IS APPROVED AND ACCEPTED BY BENTLEI'. SUBSCRIBER BEN 'TLEY SYS TIafS,INCO.RPGRATED <scf O .trbiQA.Z.s eftdIS77 Company Nam Signaturel Ifvt�Gi�l,st a/�t. 5. Printed Name f2747o4, Peio...TEG?S' er+1 d1 ,tz, Title'. cx E -snail A ess Address: fes' 0. PO rZ ? 7:7:7 Carga'l'l elephone: t�3ga/) eMd— 3.5 -"Pg Date Signed: SE1002520 1/0005 6/11 cIt Vice PresiYint, Financial Operations Title 685 Stockton Drive Exton, Pennsylvania 19341 Telephone: Gla -458 50(00 Date Signed: L—c ��� C BENTLEY SELECT PROGRAM AGREEMENT SELECT Program Benefits Exhibit A Dated as of January 2010 General Subscriber agrees to purchase SELECT' Program coverage for all Bentley Products licensed and CATs acquired by Subscriber. Bentley shall provide SELECT Program services to Subscriber for ail Bentley Products licensed by Subscriber., subject to the provisions of this Agreement,. Subscriber may complete and submit to Bentley a supplemental form referenced by Bentley as Attachment 1 ("Attavlrnent 1") and if completed Attachment i shall be ineorporaied into this Agreement, provided that (except with respect to the duration of the initial term of the Agreement) in the event of any inconsistency between this Agreement and Attachment I, this Agreement shall control with respect to Subscriber's SELECT Program subscription Any additional Bentley Products licensed by Subscriber during the term of this Agreement shall be added automatically to Subscriber's SELECT Program coverage hereunder and the additional SELECT Program Pees will be included in Subscriber's periodic invokes for SELECT Program services. SELECT Support Services 2 01 Bentley may provide SELECT support services to Subscriber either directly or, at its discretion, through authorized Bentley Channel Partners. A Channel Partner's authorization may be limited to a particular Site or Sites Subscriber acknowledges that Channel Partners are independent contractors of Bentley, and that there is no eniployerfentployee relationship between Bentley and its Channel Partners- 2 artners 2 02 Bentley shall provide Technical Support seiviees to Subscriber, evhleh includes telephone, facsimile, electronic mail, and Internet based support to assist Subscribers regarding the use of Bentley Products. CALs and services (however; not to inelude professional services or professional training services) and reasonable efforts to respond to technical inquiries within four limns during regular business boars, 'The telephone portion of Technical Support services will be availableseven days a week. 24 hours per day, provided that after normal business hours at a Subscriber's regional support location. Subscriber may be required to contact another Bentley support center. 203, Bentley shall have no obligation to providea response or other service hereunder if Subscriber's technical inquiry is caused .by: (a) iticoiporatian or attachment of a feature. program, or device to a Product not approved or supplied by Benticy; (b) any nonconformance caused by accident, transportation„ neglect, misuse. alteration modification, or enhancement of a Product; (c) failure to provide a suitable installation environment; (d) use of the Product other than as described in its Document Set or as authorized under this Agreement; or (e). failure to incorporate any Update previously released by Bentley Bentley shall offer SELECT support services for a given version of a Product, for at least twelve months, or until two Upgrades have been released by Bentley whichever occurs first 2 04 If Subscriber experiences a production -stopping anomaly„ Bentley will use good faith efforts to create an appropriate solution and deliver it electronically, or through such other means as Bentley may choose in its sole discretion 3 Upgrades. Updates. and. Platform Exchanges 3 01 Subscriber shall have the right to receive, at no additional charge {'other than shipping and handling.. if applicable), Upgrades and Updates for each Product covered by the SELECT Program as such Upgrades and Updates become available Subscriber shall also have the right to exchange, at no additional charge (other than shipping and handling, if applicable), a license for a Product (other than a Subscription License) covered by the SELECT Program on one sEt062520.11/o005 6/11 p€atfvrn] for an equivalent license for such Product on another platform (a "'Platform Exchange") 3 02 Such Upgrade, Update, or Platform Exchange may be in downloadable electronic form, or any other means as Bentley may choose from tirne to time in its sole discretion 3 03 In order for Subscriber to be eligible to receive Upgrades, Updates. or Platform Exchanges Bentley may require that Suhseriben first return the Product (or component thereof, such as hardware lock or- CD. ROM) subject to the Upgrade. Update. or Platform Exchange directly 10 Bentley 3 04 If Subscriber receives an Upgrade and uses such Upgrade then Subscriber's aggregate use of the Upgrade and the original Product subject to such Upgrade may not exceed the number of licenses purchased fee such Product If Subscriber receives a Platform Exchange then Subscriber must immediately cease using the original Product subject to such Platform Exchange SEi.ECT One r1e.. Subscriber shall receive access to SELECT Online as set Forth below and in more detail in the applicable online agr:eeanent found at www bent1ee corn (the''Onliire Agreement") 4 01 Bentley may, from time to time, offer certain services, itteluding, but not limited to, training services, to its SELECT subscribers on a computer online service; electronic bulletin board, Internet site or through technology developed in the future ('SELECT Online");. Subscriber shall use SELECT Online only in accordance with and subject to this Agreement, the terms provided herein and as supplemented t'ront time to time in the Online Agreement that is a condition precedent to use of SELECT Online The Online Agreernent supplements this Agreement but does not supersede it in any respect In the event of a'conflict between the Online Agreement and this Agreementthe terms of this Agreement shall control 4 02 Bentley . shall have the sole right to control the format, content, delivery and all oilier aspects of SELECT Online Bentley specifically reserves the right at any time to modify the information provided through SELECT Online, discontinue any portion. of SELECT Online, or terminate the SELECT Online service altogether without providing Subscriber any prior notice 4 03 Absent a written agreernent with Bentley to the contrary, Subscriber's use of SELECT (inline constitutes Subscriber agreement to he hound by the teens of the Online Agreement S„ Product Licensing 501 General (a) (b) Existing L icenses Bentley and Subscriber' agree that the terms of this Agreement shall Amend and supplement all license agreements existing as of the Effective Date for Products (including prior versions thereof). in the event of a conflict between the terms of any license agreements existing as of tate Effective Date for Products and the terns of this Agreement, the terms of this Agreement shall control until' termination of this Agreement, whereupon, with respect to any perpetually licensed Products_ the terms of the license agreement provided with the Product upon its delivery to Subscriber shall govern Subscriber's use of any such Product Future Licenses. In the event that Subscriber acquires or licenses a copy of a Product. Subscriber's use of such Product shall be governed by the terns of the license agreement Page 7 of 12 BENTLEY SELECT PROGRAM AGREEM.EN1: SELEGI Program Benefits Exhibit A Dated as of January 2010 provided with The Product upon its delivery to Subscriber, as amended or supplemented by the tenns of this Agreement in effect at the time of such purchase Subscriber hereby agrees that its downloading or use of any Products delivered to it shall constitute Subscriber's acceptance of the license agreement terns provided with the Product upon its delivery to Subscriber, If Subscriber licenses additional copies of a Product that is already licensed by Subscriber, such additional licenses may be authorized Through delivery of a new License Key and without delivery or download of any additional Product In such instances, Subscriber agrees that the license agreement terms contained of crass -referenced in the License Key shall govern Subscriber's use of such ProductIn the event of a conflict between the terms of the license agreement provided with a Product upon its delivery to Subscriber and the terms of this Agreement in effect at the time such. Product is purchased, the terms of this Agreement in effectat the time such Product is purchased shall control for the tern of this Agreement. However, with respect to any perpetually licensed Product, upon any ;coronation of this Agreement the terms and conditions of the license agreement provided with the Product upon its delivery to Subscriber shall govern Subscriber's use of the Product le) No Transfers. Subject to Section 8.01 of Exhibit B, Subscriber shall not sell, transfer, assign.. grant a security interest iii, sublicense, loan_ lease or rent any of its rights under its CALs or licenses to use Bentley Products without the prior written consent of Bentley If consent is given by Bentley. Subscriber may permanently . transfer a license to another end user. provided all software and related documentation and media covered by such liecnse are transferredto the transferee end reser and the Subscriber does not retain any copies thereof; and provided further that the transferee cod user agiees in writing with Bentley to corer ail of its CALs and licensed Products under the SELECT Program. and be bound by the terms of the license ag eemeat then in effect for such CAL or Product Id) No Commercial Hosting Products are licensed for Production Use only i'roduets may not be used to provide commercial hosting services or as the basis for fee or transaction based services S 02 Licensing Programs- Unless otherwise Specifically set forth herein.. Bentley Products are licensed on a Per Device basis as set forth in the applicable end user license that ships with the Bentley Product The following licensing programs are not available for all Products, please check SELECT Online to see which Products are eligible for the respective licensing programs (absent a specific designation of eligibility. a Product is ineligible for aoy such program). Bentley reserves the right to add or remove any Product from eligibility for licensing under the following programs. Bentley reserves the right to discontinue any of its licensing programs at any time, without notice to Subscriber However, until renewal or termination of this Agreement, web termination of any licensing program shall not affect the licenses for Products previously granted pursuant to such terminated licensing program _ For purposes of clarity all licenses previously granted pursuant 1a a terminated licensing programs shall terminate upon the renewal or termination of this Agreement (a) Pooled Licensing, It a Product is designated as eligihle on SELECT Online, then Bentley hereby grants to Subscriber a limited non -transferable nonexclusive right to use such Product for Production Use only on multi-user computer networks and to install a licensed Product on morethan one computer or hard disk. provided that all users under this arrangement are at the same Site and the number of users that Use a Product during any one interval does not exceed the number of copies of such Product for which Subscriber has licenses at such Site Any sstco252o-1/0005 6/11 Subscriber using pooled licensing hereby agrees to install and implement Bentley's SEL.ECTserver or such other Bentley licensing technology as may he required by Bentley From time to time to monitor usage Subscriber agrees and acknowledges that Bentley's SELECTserver will from time to time transmit 10 Bentley the usage log files generated by SELECTserver or such other Bentley licensing technology Subscriber agrees 16 allow the above transmission to Bentley or otherwise to transmit to Bentley true and accurate copies of such usage log files. For purposes of clarity.. the right to pool licenses of Products granted to Subscriber pursuant to this Section 5 02(a) of Exhibit A shall terminate in the event of any termination or non -renewal of this Agreement,- notwithstanding that the subject Products may be licensed on a perpetual basis The pooled licensing benefits set forth in this Section 5.02(a) of Exhibit A are not applicable to Server Products Client Software and associated CALs (h) No -Charge Licenses. (1) If a Product is designated as eligible on SEI EC r Online Subscriber is hereby entitled on a non-exclusive basis, without payment of license fees but otherwise subject to the terms of this Agreement, to create Production Use copies.. for use only by Subscriber, of certain Products made -available by Bentley from time to time and which are designated by Bentley as no -charge software: Subscriber is entitled to redistribute such Products, which are designated by Bentley as availablefor such redistribution, in machine readable form to third parties to which Subscriber distributes its Bentley Products files; provided that Subscriber procures each web third party's agreement not to further redistribute such Products, Unless Bentley specifically authorizes otherwise in writingsuch free licenses granted orredistributed hereunder will expire upon termination of this Agreement (2) For each of Subscriber's licenses of a Product designated by Bentley as eligible on SELECT Online, Subscriber may at no charge receive a single CAL allowing one additional User (which User may, under the Cerins of Section S 02(1) of Exhibit. A, be an External User') of that designated Product to install and use Client Software to access any properly licensed. Server Products; for Production Use, and in accordance with Section 5,02(f) of Exhibit A. Such CALs granted hereunder will expire upon termination of this Agreement. lc) Home Use Licenses Unless Subscriber notifies Bentley in writing that Subscriber's employees shall not be entitled to obtain borne use editions of a Product, Bentley will distribute upon an employee's request made through Subscriber's site administrator, and permit Subscriber's employees to use, without charge, home use editions of certain Products (for. which such editions are available, as designated on SELECT Online) in accordance with the terms set forth in the license agreement provided with such home use edition of a Product, as amended and supplemented by this Ag=reement: Restrictions on home use licenses include the following: home use licenses are not pm -milted to be used for Production Use or any commercial use,including training; home use licenses are not for use in Subscriber's Offices; home use licenses may not be stored on any electronic media; honk use licenses must be permitted in Subscriber's jurisdiction The total number of home use editions available to Subscriber's employees may not exceed the number of Subscriber's Product licenses to which the home use editions relate, Home use editions of Products are ineligible for Technical Support even if Subscriber has purchased SELECT Program services Subscriber shall not be responsible for ensuring compliance by its employees with the Bentley home Page 3 of 12 BENTLEY SELECT PROGRAM AGREEMENT SELECT Program Benefits Exhibit A Dated as of January 2010 use license nor shall Subscriber be liable for any breaches of such license by its employees. Such home use licenses .granted hereunder will expire upon termination of this Agreement. (d) Evaluation of Products. 1fa Product is designated as eligible on SELECT Online, Bentley hereby grants to Subscriber,. subject to its compliance with the procedures of this. Section 5.02(d) of Exhibit A, a hnnited nontransferable nonexclusive right to create, using SELECT Online (following the registration requirements set forth on SELECT Online); one (1) copy per Site of each Product contained Oil SEL EC T Online solely far Evaluation Use of such Product, prnvided that Subscriber shall have no right to create evaluation copies of Products previously licensed by Subscriber. The duration of use of an esaluation copy shall not exceed thirty (30) days, and Bentley may provide the Product .with a .mechanism that will cause the Product to tithe out or expire after thirty (30) days Upon the earlier of the conclusion of such (30) day evaluation period er tate termination of this Agreement, Subscriber shall destroy all copies of Products created for evaluation hereunder and, upon request by Bentley certify such destruction in writing je) Subscription Licensing, (1) Subscriber may, upon Bentley s approval, license certain Products or acquire CALs, : for a specified term (a "Subscription License') A Subscription license may entitle Subscriber to license rights in a single Product (a "Product Subscription") or a specified portfolio of Products (a'Portfolio Subscription") for Production Use,. in Object Code form and within the Country Each Portfolio Subscription is licensed for use on a single computer at one time ,' and its component parts or individual Product elements, if any, may not be separated fot useon more than one computer:. To be eligibleto participate, Subscriber must be current on all outstanding invoices. for amounts ovFedto Bentley.. (2) The license term for a Product Subscription or Portfolio Subscription shall commence upon Subsctiber's receipt of the License Key and, unless earlier terminated, shall continue fbt the renitainine current term of the Agreernent en suchshorter term (not less than one (1) month) as Subscriber may elect at the time the purchase order is delivered and reflected in the License Key (the "License Terni"'): The License Tern (and each sueeessive term) shall automatically renew at its expiration for a successive term equal to the then rema€nine tern` of the Agreement, or such shorter term (not less than one month) as a Subscriber may elect at the time of such renewal, unless either party gives notice of its election not to rent w the License Terre at least thirty (30) days prior to the expiration of the then current term 'The License. Term for a particular Product Subscription as Portfolio Subscription shall terminate upon termination of the Agreement or in the event of non -renewal at the end of the then current License Term as provided in the preceding sentence (3) The fees in effect as of the date a Subscription License for a CAL, Product Subscription or Portfolio Subscription is initiated or tenewixi hereunder shall remain in effect for such CAL. Product or Portfolio Subscription until the expiration or renewal date of the License Term for such CAL, Product or Portfolio Subscription. On the renewal date the prices in effect on such date shall be applicable (4) During the License Tenn, and any renewal terra, all Subscription Licenses for CA Ls. Product Subscriptions and Portfolio Subscriptions shall entitle Subscriber to all Stleoes201/00Os 6/11 (1) (5) SELECT Program services that the same CALs or Products under a perpetual license would entitle Subscriber to receive, Subscriber recognizes that the CALs. Products and Portfolios acquired or licensed under a Subseriplion License are provided to Subscriber for use only for the applicable License Term or any renewal term in no event will a Subscription License continue beyond the expiration. or earlier termination of the SELECT Agreement under which it is granted, Subscriber recognizes that CAL Subscriptions Product Subscriptions and Portfolio Subscriptions may be delivered to Subscriber with embedded Time Clocks. Subscriber agrees that Time Clocks are not considered a defect of such Subscription Licenses and releases Bentley froth any and all: clangs, however characterized.. arising from or related to Time Clocks or their operation Subscriber may not remove or evade Time Clocks. ((sj in the event of any inconsistency between this Section 5 02(e) of Exhibit A and any other Section or Exhibit of this Agreement or between this Section 5 02(e) of Exhibit. A and the terms and conditions in the license agreement providedwith any Product or CAL that is the subject of a Subscription License, this Section 5O2(e). of Exhibit A shall control with respect to Subscription licenses Client Software Benefits . 'Client Access License or 'CAL': is a license right to .install. and use Client Software and permit a User to access Server Products licensed by Subscriber, 7f Client Software is designaled as eligible on SELECT Online. Subscriber may, up to the total number of CALs licensed by Subscribe, for Production Use only: (1) install and use Cliestt Software; (2) permit Users, including External Users to access Server Products licensed by Subscriber; and (3) access Server' Products licensed by an External User; and the total number of CALs counted as used hereunder shall be the number ofunique Users, which number shall include External Usersrecorded in the usage log files transnsittedputsuant to this Section 5 02(0, during the term of this Agreement The parties acknowledge and agree that an External User may be permitted to access Server Products licensed by Subscriber using a CAL owned by that External User Subscriber agrees to transmit to Bentley, upon Bentley's request, true and accurate copies of the usage log files generated by Server Products or such other Bentley licensing technology as may be required by Bentley from time to time. and information identifying any External User that has accessed Server Products licensed by Subscriber_ Upon expiration or earlier termination of this Agreement, the terms of the license agreement provided with the Client Software and the CAL shall thereafter govern the use of such Client Software and the associated CAL, and Subscriber shall no longer be entitled to the Client Software Benefits as set forth in this Section SEL EC ('server Subscriber may, upon Bentley's approval, and at no charge., receive a Subscription License for Bentley's SELECTserver Product (or such other server -based license management teefvtology that Bentley may offer). The teens of Subscriber's. use of the SELECTserver Produce shall be as set forth in the license agreement provided with the SELECTserver Product. as such terms are amended or supplemented ut this Agreement Subscriber acknowledges that SELECTserver (or' such other server based license management technology that Bentley may offer) may be delivered to Subscriber with embedded Time Clocks Subscriber agrees that Time Clocks are not considered a defect of the Product and releases Bentley from any and all claims, however characterized arising frons or related to lime Clocks or their operation Subscriber may not Pages of as BENTLEY SELECT PROGRAM AGREEMENT' SELECT Program Benefits Exhibit A Dated as of January 2010 remove at evade Time Clocks. Subscriber agrees and aclotowledges that Bentley s SELECT -server will from time to time transmit to Bentley the usage log files generated by SELECTserver or such other Bentley licensing technology Subscriber agrees to allow the above transmission to Bentley or otherwise to transmit to Bentley true and accurate copies of such usage log files SELECT Program Fees 6 01 Subscriber shall pay to Bentley the applicable SELECT Program Fee in effect for each Product licensed or CAL acquired as of the Effective Date of this Agreement. Subscriber shall pay to Bentley the applicable SELECT Program Fee in effect for each additional Product licensed or CAL acquired during The tern hereof as of the date such additional Product license or CAL is purchased. With respect to the Products licensed or CALs acquired by Subscriber during the tear of the Agreement, the fees in place as of the Effective Date, or. with respect to additional Products licensed or CALs acquired, as of the date of such purchase. shall remain in effect for the Subscriber until the date of the next renewal of this Agreement. at which lime the fees shall be changed to those charged by Bentley as of sueh renewal date, provided that no changes in fees for Products or CALs coveredshall be effective until thirty (31)) days after Subscriber receives notice of such changes: Subscription. License fees as set forth in Section 5.02(e). of this Exhibit A are inclusive of SELECT Program coverage and no additional fees for SELECT Program coverage shall apply for Products licensed or CALs acquired tinder a Subscription License 6 02 Bentley shall initially invoice Subscriber Ica one (1) year .of SELECT Program Fees for all Product licenses and CALs as of the Effective Date.of this Agreement Bentley shall provide Subscriber with a pro- rated annual.invoice for all Product .licenses and CALs purchased during the first year following the Effective Date of this Agreement As of the.. first anniversary of the Effective Date of this Agreement, invoices for SELECT Program Fees for Product licenses.and CALs shall be issued quarterly or annually invoices reflecting new Product licenses. or CALs will include a p'oteted. amount reflecting coverage of the Product or CAL Under the SELECT Prctgram during the preceding invoice period plus tine full unworn for the current invoice period Bentley may modify the timing of invoicing hereunder at any time. 6 03: Calculation and payment of the :SELECT" Program Fee hereunder shall be based on the local prices and local currency of the Subscriber's Site where the related Products or CALs are used 1EL002520 1/0005 5/11 'BENTLEY SELECT PROGRAM AGREEMENT General Terms and Conditions Exhibit B Dated as of January 2010 Definitions The capitalized words, terms and phrases in this Agreement shall have the meanings set forth below; 1 01. "Agreement" means the SELECT Program Agreement executed by Bentley and the Subscriber and all exhibits attachments and amendments as in effect from time to time. 1 02 'Bentley Products" or "Products" mean the software products, data and other materials previously or hereafter distributed by Bentley through delivery mechanisms determined in Bentley's sole discretion (including but not limited to distribution via SELECT online through download or by ordering through CD format) that Bentley makes available to Subscriber typically in Object Code form only for licensing hereunder including Updates and Upgrades thereto 1,03 "CAL" shall be defined as set forth in Exhibit A. Section 5 02(0 herein 104. "Channel Partner' or "Bentley Channel Partner" means individuals and companies who are authorized by Bentley to provide SELECT support services as set forth in Exhibit A. Section 2 1 05. "Client Software" means software that allows a Device to access or utilize (or where applicable, be managed by) Server Products (and, also where applicable, to utilize certain aspects oi'tire Products when disconnected front the Server). 1 06,. "Country" means the epuntty; (i) where the .Product is first obtained frorn Bentley or a Channel Partner: or (is) specified in the purchase order for which a Production Use copy of the Product may be. made or the Product is authorized to he used. 1 07 "Definition of Ilse" shall have the meaning set forth in each License Key. 1011 "Device" means a single' personal computer: workstation terminal.. hand held computer, pager, telephone,. personal digital assistant. Server., or other electronic device 1 09 "Distribute" means distribution by Bentley through all means now known or hereinafter developed. 1 10 "Document Set" means, with respect to a Product,. one copy of one or more user guides developed for use with such Product in electronic format or such other format as elected by Bentley in its sole discretion 1 11 -Effective hate" means the date that this Agreement is accepted by Bentley as indicated otr the first page of this Agreement 1 12, "Evaluation Use" means the use of a Bentley Product solely for internal evaluation of such Product Evaluation Use expressly excludes use in conneetion with ongoing projects use for compensation (stony kind and Production Use.. 1 L3. "External User" means any User (not an organization) who is not: (1) one of Subscriber's full-time. part-time, or temporary employees; or (ii) agency temporary personnel or an independent contractor on assignrnent at Subscriber's place of business or worksite. 1 14 "License Key" means the document furnished by Bentley in electronic or such othe€format es determined in Bentley's sole discretion., to Subscriber identifying the Product licensed and authorizing use of a Product 1.,15- "License Term" shall be defined as set forth in Exhibit A Section 5.02(e)(2) herein. 5EL062520 1/0005 6/11 1 16. "Object Cade" mens the Products in a machine readable form that is not convenient to human understanding of the program logic, and that can be executed by a computer using the appropriate operating ssystem without compilation or interpretation Object Code specifically excludes source code 1 17 "Online Agreement shall he defined as set forth in Exhibit A Section4 herein. 1 18 "Order" shall be defined as set forth itt Exhibit C, Section 1 01 herein: 1 19 "Pre -Existing Works shall be defined as set forth in Exhibit C Section 1,08 herein 1 20 "Platform Exchange" shall he del -tried as set forth in Exhibit A. Section 3.01 herein 1 21 "Portfolio Subscription" shall be defined as set forth in Exhibit A. Section 5 02(e)(1) herein 1 22 "Product Subscription" shall be defined as set forth in Exhibit A. Section 5 02(e)(1)herein 123 "Production use means use of a Bentley Product in Object Code form by a User or Device, as applicable; solely for Subscriber's internal production purposes, and excludes External Users (except with respect to use of CALs and access of Server Products pursuant to Exhibit A Section 5(12(0 herein) and Service Bureau Use 1 24 "Proprietary Infer motion" shall he defined as set forth in Exhibit B, Section .3 06(a) herein 1 25. "SEL EC'T Online" shall be defined as set forth in Exhibit A, Section 401 herein.. 1 26 "SELECT Program Fee" means the fee for SELECT Program services as set forth from tine to time in Bentley's sole discretion. 127 "SELECIserver" means Bentleys server based licensing technology 1 28 "Serial Number" means a unique number' issued by Bentley for identification ofa particular copy of a Product, which number shall be registered to Subscriber and assigned by Subscriber to a particular copy of such Product l 29 "Server" cans one of Subscriber s eornputerb that can mn a Server Product. 130. "Server Product" means a Product that provides services or functionality to Subscriber's Server(s) 1 3 f "Service Bureau Use" includes managing, hosting, distributing ni otherwise providing access to Products across a wide area network 1 32. "site" means all of the discrete geographic locations at which Subscriber Uses or manages the operation of Products within the geographicboundaries of a single Country 1 33. "Subscriber" shall be defined as set forth on the front page of this Agreement, and with respect to Use of Products the term Subscriber shall refer to: (1) one of Subscriber's full-time: part- time, or temporary employees; or (ii) agency temporary personnel or an independent contractor engaged in Production Use on assignment at Subscriber's place of business or work -site Page 6 of 12 1 3 1.35 BENTLEY SELECT PROGRAM AGEMENT' General Terms and Conditions Exhibit B Dated as of'.January 2010 "Subscription License" shall be defined as set forth in Exhibit A Section 5 02(e)(1) herein "Subscription Licensing" means acquisition of a CAL or licensing of a Product or portfolio of Products as set forth in Section 5 02(e) of Exhibit A of this Agreement.. 1 36 "Technical Support" means telephone, facsimile, Internet and electronic mail based support to assist a subscriber to the SELECT Program as described in Exhibit A. Section 2.02 of this Agreement. 1 37 "Time Clocks" means copy -protection mechanisms, or other security devices which may deactivate Products or CALs, including Bentley's SELEC'Tserver after temainatinn or expiration of the Agreement, any applicable License Tenn or any applicable renewal term 1 38 "Update" means a maintenance release of a Product 1.39 "Upgrade" means a commercial release of a Product which has substantial added functionality over the Product it is intended to replace. 140 "Use"* (whether or not capitalized) means utilization of the Product or CAL by an individual or when a Product has been loaded into temporary memory (i,e,. RAM) or installed into permanent+memory (e,g. hard disk, CD-ROM, or other storage device) of a computer. 1 41 "User" means an individual person, 1 42 "Work" shall be defined as set forth in Exhibit C Section 1.01 herein 1 43, "Wolk Product' shall be defined as set fortis in Exhibit C, Section 1 01 herein Fayment. of Oenttsy Invoices 2 01. Payment Terris, Subscriber shalt pay each Bentley invoice for all CALs, Product licenses raid services provided hereunder within thirty (30) days from the date of such invoiceinterest shall accrue on. delinquent payments of such invoices at the rateof one and one-half percent (1.S%) per month or the highest rate permitted by applicable law, whichever is less la the event any payment hereunder .is past due. Bentley, at its discretion,may suspend or after notice of such overdue payment and a thirty (30) day period to cure, terminate Subscriber's services rights, and licenses provided .under this Agretmnent 2 02. Taxes Subscriber shall pay to Bentley all levied taxes that Bentley is required under applicable law to collect tram Subscriber by reason of the Transactions contemplated by this Agreement: including, but not limited to sales, use, occupation, value added, excise, and property taxes (except for taxes based on Bentley's net income), If Subscriber is obligated under an applicable law to withhold or deduct taxes from any payment of SELECT Program Fees to Bentley Subscriber shall furnish to Bentley official receipts evidencing Subscriber's payment of such taxes. 2 03. Local Price and Cu treacly. Calculation and payment of the SELECT Program Fee or any separate price for all CALs, Products and services hereunder shall be based an the local price and local currency of the Subscriber s Site where such CAL, Product or service is used, 2 04 Records; Audit., Subscriber shall maintain complete and accurate records of CALs and Productlicenses prior to the date of this Agreement and its creation and use of the CALs acquired and Products licensed hereunder to permit Bentley to determine whether set.0025201/0005 5/1.1. Subscriber has complied with its obligations hereunde€. ]hese records shall include the location and identification of the Subscriber hardware on which Subscriber uses each copy of the CALs or Products Subscriber shall, upon seven (7) days advance written notice by Bentley, permit reasonable inspection and copying of such records by Bentley or a third -party auditor retained by Bentley at the offices of Subscriber during regular working hours Intellectual Property Rights 3 0, Title; Reservation or Rights Subscriber acknowledges and agrees that: (a) The Products, including the Document Sets for each Product, and any information which Subscriber obtains through the SELECT Program or the use of SELECT Online or any other means of electronic transmission., contain proprietary information of Bentley., its licensors at other suppliers; and are protected under United States copyright laws, other applicable copyright laws., other laws relating to the protection of intellectual property and international treaty provisions; tbl The entire right,, title and interest in and to the Products. the Document Sets, any information Subscriber obtains through the SELECT Program or the use of SELECT Online or any ether means of electronic transmission and all associated intellectual property rights, shall remain with Bentley at its licensor; The Products are licensed, not sold, and title to each copy of the Products shall remain with Bentley or its licensors, and shall not pass to Subscriber; and (c) (d) .Bentley retains all rights not expressly granted 3 02 Sonne Code Subscriber shall have no right hereunder to receive, review., use or otherwise have access to the source Bode for the Products 3 03 Copyright Notices, Subscriber shall reproduce and include on all copies of the Products created by Subscriber all copyright notices and proprietary legends of Bentley or its licensors as they appeal in or 011 lite original media containing the Products supplied by Bentley 3 04 Reproduction of Document Sets. Subscriber may reproduce" the Document Sets for its internal non-commercial use only, but the cumulative number of such reproduced Document Sets may not exceed the number of Products licensed by Subscriber that correspond to the Document Sets 3 05 Reverse Engineering. Subscriber may net decode, reverse engineer. reverse assemble reverse compile, or otherwise translate the Products or Document Sets except and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation. To the extent. that Subscriber is expressly permitted by law to undertake any of the activities listed in the previous sentence, Subscriber will not exercise those rights until it has provided Bentley with thirty (30) days prior written notice of its intent to exercise such rights 3.05 Proprietary Information (a) Subscriber understands and agrees that Bentley mayin connection with the provision of CALs, Products and services hereunder disclose to Subscriber confidential, proprietary and technical information pertaining to Bentley Products and to Bentley's technology and business practices (collectively ".Proprietary Information) Subscriber agrees to trait all Page 7 of it BENTTEY SELECT PROGRAM AGREE IE, T General Terms and Conditions Exhibit B Dated as of :January 2010 Proprietary Information in accordance with this Section 3.06 of Exhibit B (b) Subscriber shall maintain the confidentiality of all Proprietary Information Subscriber shall not reproduce or copy Proprietary Information except as permitted in this Agreement or as may be expressly authorized in writing in advance by Bentley Ail such copies shall be marked by Subscriberas proprietary and confidential inforination. tel Subscriber shall only use Proprietary Information in furtherance of this Agreement, and may disclose Proprietary Information only to those employees required to have knowledge of same to perform their duties pursuant to this Agreenient, Subscriber shall not disclose or make Proprietary Information available to any third party at any time fel) Subscriber shall treat Proprietary Information with the same degree of care as it uses to protect its own confidential information and in no case Iecs than a reasonable degree of care (e) Upon the termination or non renewal of this Agreement; Subscriber shall return to Bentley or, if so requested.. destroy all Proprietary Information in its possession (f) Subscriber shall have no obligation of confidentiality with respect to any Proprietary Information that (i) has entered the public domain other than through a breach of this Agreement, (ii) has been rightfully obtained by Subscriber from.a third party with no obligationof confidentiality, or (air) .is previously known by Subscriber as demonstrated by char and convincing evidence (g) Subscriber shall promptly inform Bentley upon knowtedge of any actual or potential unauthorized use or disclosure of the Proprietary Information 3 07 No Benchmarks, 'Subscriber may . not disclose the results of any Product testing including but not limited to benchmarks lo any third party without first obtaining Bentley's written consent to do so L,inrlteil Warrairtg; Limitation of Remedies and L iatu111y 4.0] . Limited Warranty to Subscriber:. Except for Products licensed under Section 5.02(b).. Section 5.02(e) or Section 5.02(d) of Exhibit A hereof, which are provided to Subscriber "AS -IS' and without warranty of any kind, Bentley hereby warrants for the bent •only of Subscriber that (a) for a period of ninety (90) days ("Warranty Period") from the date of delivery to Subscriber of a Serial Number of Product, as the case may be. the Product shall. under nonnat use, operate in substantial conformance with the functional specifications set forth in the Document Set applicable to such Product, and (b) for a period of ninety (90) days from the date of delivery. other products and materials famished by Bentley to Subscriber shall. under normal. use, operate in substantial conformance with the Bentley documentation applicable to such products and materials. If any modifications, enhancements or change -a are mace by Subscriber or at Subscriber's direction to the Products; if the Products are. reverse - engineered, decompiled or disassembled; or if Subscriber hreaohes the terms of this Agreement, then the warranties in this section shall be immediately terminated. This litnitcxl warranty gives Subscriber specific legal rights, Subscriber may have other rights which may vary from stalejurisdietion to state/jurisdiction. 402 Exclusion of Warranties. THE WARRANTIES STATED IN SECTION 4.01 ARE BENTLEY S SOLE AND EXCLUSIVE WARRANTIES PERTAINING TO THE PRODUCTS SELECT SEt002520 1/0005 6/11 SUPPORT SERVICES AND OTHER MATERIALS AND SERVICES LICENSED, DELIVERED OR OTHERWISE FURNISHED BY BENTLEY UNDER THIS AGREEMENT BENTLEY DOES NOT WARRANT THAT THE PRODUCTS, SELECT SUPPORT SERVICES, OR ANY OTHER SERVICE OR MATERIALS WILL MEET SUBSCRIBER'S REQUIREMENTS., BE FREE FROM VIRUSES OR OPERATE UNINTERRUPTED OR ERROR FREE. BENTLEY HEREBY DISCLAIMS ALL OTHER WARRANTIES EITHER STATUTORY. EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION., WARRANTIES AGAINST NON -INFRINGEMENT AND THE IMPLIED WARRANTIES OF MERCHANTABILITY, SATISFACTORY QUALITY AND FITNESS FOR A PARTICULAR PURPOSE. THESE EXCLUSIONS MAY NOT APPLY TO SUBSCRIBER AS SOME STATES/JURISDICTION DO NOT ALLOW THE EXCLUSION OFCERTAIN WARRANTIES. 4 03 Exclusive Remedy, The entire liability of Bentley and the sok and exclusive remedy of Subscriber shall be, in Bentley's sole and absolute discretion, (i) to repair or replace a Product or other materials in brach of the foregoing warranties, (ii). to advise Subscriber how to achieve the fame functionality with the Product as described in the Document Set through a procedure. different from that set forth in the Document Set, or (iii) to return the purchase price or fees paid therefore, Where written notice of such breach, specifying the defect, is furnished to Bentley during the Warranty Period Repaired, corrected, or replaced Products and Document Sets shall be covered by this limited warranty for ninety (90) days alter the date; (a) of shipment to .Subscriber of the repaired or replaced Products and • Doeument Sets, or (b) Bentley advised Subscriber how to operate the Products so as to achieve the firnetionality described in the Document Sets 404 Exclusion of Damages. IN NO EVENT SHALL BENTLEY .AND ITS LICENSORS AND SUPPLIERS BE LIABLE TO SUBSCRIBER FOR ANY 1NDIREC'T, INCIDENTAL. SPECIAL OR CONSEQUENTIAL. DAMAGES. REGARDLESS OF THE NATURE OF THE CLAIM, INCLUDING WITHOUT LIMITATION LOST PROFITS, COSTS OF DELAY. INTERRUPTION OF BUSINESS, LOSS OF USE, INABILITY TO. ACCESS ONLINE SERVICES, ANY FAILURE OF DELIVERY, COSTS OF LOST OR DAMAGED DATA OR DOCUMENTATION. OK LIABILITIES TO THIRD PARTIES ARISING FROM ANY SOURCE, EVEN IF BENTLEY HAS BEEN ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILI'T'Y OF SUCH DAMAGES OR CLAIMS, BECAUSE SOME STATES/JURISDICTIONS DO NOT ALLOW FOR THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO SUBSCRIBER 4 05 Disclaimer. Subscriber acknowledges that the Products are not fault-- tolerant and have not been designed, manufactured or intended for use and will not be used in the development of weapons of mass destruction, as on-line control equipment in hazardous environments requiring fail-safe performance, such as in the operation 01. nuclear facilities, aircraft navigation or communication systems, air traffic control, direct life support machines, or weapons systems, in which the failure of the Products could lead directly to death, personal injury, or severe physical or environmental damage. Subscriber further acknowledges' that the Products are not substitutes for Subscriber's professional judgment, and accordingly, neither Bentley nor its licensors or suppliers are responsible for Subscriber's use of the Products or the results obtained from such use. The Products are intended only to assist Subscriber in its business, and are not meant to be substitutes for Subscriber 's independent testing and verification of stress safety utility or other design parameters Page 8 of 22 BENTLEY SELECT PROGRAM AGREE EMI General Terms and Conditions Exhibit 13 Dated as of January 2010 4:06, Limitation of Bentley Liability. N. THE EVENT THAT; NOTWITHSTANDING SECTIONS 4 01, 4.02, 4 03., 4 04 AND 4.05 OF THIS EXHIBIT B, BENTLEY 15 FOUND LIABLE FOR DAMAGES BASED ON ANY BREACH, DEFECT, DEFICIENCY ORN'ON-CONFORLLl1TY INA PRODUCT, IN SELECT SUPPORT SERVICES .: OR IN ANY OTHER. SERVICE OR MATERIALS WHETHER IN; CONTRACT, TORT OR OTHERWISE, AND . REGARDLESS OF WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE. BY LAW, BENTLEY'S CUMULATIVE LIABILITY HEREUNDER SHALL NOT EXCEED` THE PRICE PAID BY SUBSCRIBER FOR (i) SUCH PRODUCT (n) A ONE-YEAR SUBSCRIPTION TO THE .SELECT PROGRAM,. OR (iii) SUCH OTHER DEFECTIVE SERVICE OR MATERIALS: AS THE CASE MAY BE: THE PROVISIONS .OF TRIS AGREEMENT ALLOCATE THE RISKS BETWEEN BENTLEY AND SUBSCRIBER:. BENTLEY'S PRICING REFLECTS THIS ALLOCATION OF RISK AND THE LIMITATION OF LIABIL.IFY SPECIFIED HEREIN: 4 07 Indemnification by Bentley, Bentley shall pay any damages Finally awarded against Subscriber based on a claim against Subscriber that a Product which is developed and owned by. Bentley infringes a third party's eapyrighl under the laws of a Bente Convention signatory eountry, or' results in a misappropriation ofa third party's trade secret, in: the Country where Subscriber has been authorized to place the Produet subject to such claim into Production Use, if Subscriber provides to Bentley: (a) prompt written notice of any such claim, (b) all available information and :assistance. and (c) tate opportunity to exercise sole control of the defense and settlement of any such claim. Bentley shall also have theriglit,,at its expense either to procurethe right for Subscribei to continue to use the Product or to replace of modify such Product so that it becomes non -infringing. If neither of. the foregoing alternative; is available on terms that, Bentley, in its. sole' discretion, deems desirable, Subscriber shall. upon written request from Bentley, return f0 Bentley the allegedly infringing.. Product, in which event Bentley :shall 'refund to Subscriber the price< paid by Subscriber for each copy of such returned' Product; less. twenty percent (20%) .fat each elapsed year since the commencement. of. The [icertae for such copy.- Bentley shall have no liability: and this indemnity shall not apply if the alleged infringement is contained in a Product which is not developed or owned by Bentley or is dueto modification of the Product by Subseriber ortheeombination. operation or use of a Product', with other software that does not originate :from :Bentley or it Subscriber is in breach of this Agreement Bentley shall also have no liability and this indemnity shall not apply, for the portion of any claim :o f infringement basedon use of.a superseded or altered release :of a Product if the infringement would have been avoided by the use of a -current, unaltered release of the Product In no event smolt Bentley's liability hereunder to Subscriber exceed the license fees paid by Subscriber For the allegedly infringing Product; This Section 4.07 sets forth Subscriber's sole remedy for inteliectual property infringement 5,. Export Controls The Products have been manufactured tit developed in the United States of America and accordingly may be subject to U,5export control laws:, regulations and requirements Regardless of any disclosure made by Subscribe/ to Bentley of an ultimate destination of the Products, Subscriber must not export or transfer, whether directly OT indirectly. the Products, or any portion thereof, or any system containing such Products or portion thereof, to anyone outside the United States (including further export if Subscriber took delivery of the Produiis outside the United" States) without first complying. strictly and fully with all expert controls that may be imposed on the Products by the United States Government or any country or organization of nations within whose jurisdiction Subscriber uses the SEL002520-1/0005 6/11 Products._ The countries subject to restriction by action of the United States Government aresubject to change, and it is Subscriber's responsibility to comply with the United . States Government. requirements as they niay be amended from time to time Subscriber shall indemnify, defend and lioid Bentley harmless for any breach or its obligations pursuant to this Section U S„ Gn'sernstient Restricted Rights. If the Products are acquired for or on behalf of the United States of America. its agencies andtor instrumentalities ("IIS: Gover menti'); it is provided with restricted rights The Products and accampanyirtg. documentation are 'commercial computer software and "commercial computer software documentation," respectively, pennant to 48 C F. R. 12:212 and 227 7202, and "restneted computer software' pursuant to 45 C.F.R. 52 227-19(a), as applicable Use, modification, reproduction, release, performance, display or. disclosureof the. Products and accompanying documentation by the U. S.Government art subject to restrietiot s as set forth in this Agreement and pursuant. to 45 C.F.R 12212 52227-1u. 227.7202; and 1852 227-86', as applicable Term; Termination 7 01 • Tenn: This Agreement and Subscriber s SELECT Program subscriptionshall become effective on the Effective Date, and shall continue for an initial terra of twelve (12) months (unless Attachment 1 provides for a longer duration of the initial term) and shall automatically renew for terms of like tenure unless either party gives notice of its election to' not renew`` the tenu at least thirty (30) days prier: to the expiratinn ofthe then -current term; 702 Termination kr Material Breach.. Either: party may. at iia option;: terminate this Agreement in the event of a material breach of, this Agreement by the other party. Any such termination may be effected only through a writtennotice to the otherparty specifically identifying the breach ea breaches on which termination is "based:, Following receipt of suchnotice:, the party in breach shall Itavi twenty-one (21) days to cure such breach of breaches, and this. Agreement shall, terminate in the event that such cure is not made by the end: of such period; provided, however,. Bentley shall have the right to terminate this Agreement immediately if Subscriber breaches. any of its obligations under Section 3 of this Exhibit B The failure of Subscriber to pay an outstanding invoice of Bentley'shail always constitute a material breach of this Agreement. 703 Insolvency. If; under applicable insolvency. laws,. Subscriber becomes unable Su pay its debts or becomes insolvent or bankrupt or makes arrangements with its creditors, or otherwise goes into. Iiquidafion. administration or receivership, then Bentley shall have the right to terminale this Agreement immediately by written. notice 704. Consequences of Termination. Upon the termination of this Agreement for any reason; all of the rights and licenses granted: to Subscriber in this Agreement shall terminate immediately:: With respect 10 any perpetually licensed Products, the terms and conditions set forth in the license agreement delivered with such Products and the Definition of Use shall govern Subscriber's use of' such :Products . Subscriber shall immediately discontinue use of SELECT Online 1,05 Reinstatement Following Termination:, Following a termination of the SELECT Program, Subscriber may reinstate such services only if Bentley consents to such reinstatement and 'Subscriber pays 10 Bentley; in advance, a SELECT reinstatement fee, in an amount to be determined in Bentley'a sole discretion, such amount not to exceed the amount of all fees that would have accrued and been payable,. excluding discounts, for the period between the date of termination and the date of reinstatement. Page 9 of I2 BENT LEY SELECT PROGRAM AGREEMENT General Terms .and Conditions Exhtlibit. B Dated as of January 2010 Miscellaneous 8.01 Assignment Subscriber: shall not assign this Agreement or delegate its duties hereunderwithout prior written consent by Bentley. For purposes of this Agreement, a change in control :of Subscriber shall be considered an assignment for which Bentley's prior written consent is hereby granted provided that the surviving entity from, such change in control must enter into a SEE ECT Agreement. This Agreement niay be .assigned. by Bentley to any successor in interest to. Bentley's- business entley'abusiness or to any direct or indirect wholly-owned subsidiary of Bentley Systems, Incorporated, Any purported assignrnent in violation of this provision shall be void and without effect 8 02 Entire Agreement, This Agreement, together with the Exhibits and signed Amendments, if any, incorporate the entire agreement of the parties and supersede and merge all prior oral and writte3 agreements, discussions and understandings between the parties with respect to the subject matter hereof, The terms and conditions of'this Agreement and of the applicable Bentley confirmation shall apply to;esiob order accepted or shipped by Bentley hereunder Arty additional or different terms or conditions_ appearingon a purchase order issued by, Subscriber hereunder, evert if Bentley acknowledges such terms and conditions, shall not be binding on the patties unless both parties expressly agree in a -separate writing as provided under Section 8 03 of this Exhibit B; .8 03 Atnendnrents. Except as. otherwise contemplated herein with respect to updating, amending and supplementing the exhibits, this Agreement may only be amended or modified by a writing duly executed by authorized representatives ofthe parties, provided,. however, that any additional or different terms or conditions appearing on a purchase order, even if required to be acknowledged by Bentley,. shall notbe Finding on the parties. 8 04 Notices, Notices "under this Agreement shall bemade or given as of: the date of either. hand delivery or mailing to such party; if sent prepaid certified mail or next day air delivery to the address set forth on the first page of thiS Agreement. All notices ander this Agreement shall be addressed, if to Bentley; to its General Counsel, and if to Subscriber to its : authorized representative identified in this Agreement or`in a subsequent notice to Bentley 8.95 Force Majeure Bentley shall not be liable for failure to fulfill the terms of this Agreement due tofire,: strike; 'war, government regulations, acts of God' labor disturbances, cels of tern -trim Or other causes which are unavoidable' and beyond its control; 8 0,. Waiver The failure of either party to insist upon any of its rights under this Agreement' upon one -or -more occasions. or to exercise any. of its rights; shall not be deemed a waiver of such rights on any Subsequent. oecasiaiis 8.07 Survival. The covenants contained in this Agreement which, by their terms, require et contemplate performance by the parties after the expiration'DT termination of the Agreement (including, but not Limited to, Sections 5.01(a), (b), (c) and (d) and 6.01 of Exhibit A, Section 1, 2 3, 4 5, b:, 7.04, 7'05 and 8 of Exhibit 13, and Sections 1 06, 1.07,: 3.08, 1 09, 1;10; 1 11, 1;.12, 1 14, I.16 and 1.17 of Exhibit C) shall be enforceable notwithstanding said expiration tic termination 8 08 Severability,. The provisions of this Agreement shall be severable and the invalidity or unenforceability of any one provision shall not affect any other unless othenvise noted: 8 09 Governing Law. This Agreement shall be governed by, interpreted, arid: enforced in accordance with the laws of the Commonwealth of Pennsylvania; without regard to conflicts of law provisions., TQ the maximum extent permitted by applicable law, the patties agree that the pnsvisions of the United Nations Convention on Contracts for the _5E1.002520 1/0005 6/11 International Sale of Goods, as amended, and of .the Uniform Compeer lnt`armation Transactions Act, as it may have been or hereafter may be in effect in any jurisdictionshall not apply to this Agreement" 8 1, Atbitratton., In the event of any dispute,. controversy of claim between the parties arising under this Agreement, the parties shall submit to binding arbitration before a single arbitrator in Philadelphia; Pennsylvania in accordance with the Couunercial Arbitration Rules of the American Arbitration Association, The dei;isiort of the arbitrator shall be final and binding; on the parties, and thejudgment upon the award rendered by the arbitrator shall be enforceable inany court of competent jurisdiction, Each party shall bear its own attorney`s tees, costs. and expenses incurred in such arbitration 8 11 Independent Contractor; Bentley's relationship with Subscriber for. all purposes hereunder shall be that of an independent contractor and nothing herein shall be construed as creating, at any time an employer' and employee relationship between the partied 8.12. Change of Ownership, Subscriber shall provide Bentleywith, sixty (60) days advance written notice of any changes in its ownership or location: 8.33. Headings. The headingsin this Agreement are intended solely for convenience of reference and shall not affect the meaning or interpretation of'this Agreement Rage 10of12 BENTLEY SELECT PROGRAM AGREEMENT Professional Services Exhibit C Dated as of ,January 2010 sinal Services, 1 01 Subscriber may request professional services from time to time and Bentley may agree to perforinsuch services pursuant to this Agreement The description of professional services requested by Subscriber and which Bentley agrees to perform shall be set forth in one or more written. deseriptions labeled. "SELECT Professional Services'` and signed by Subscriber and Bentley. (each" an "Order"}., Bentley shall have the tight to accept ot decline any proposed Order Each Order shall' set forth, at a minimum, the work to be done; the number of Bentley s personnel to he assigned to Subscriber's work, the duration of each individual's assignment, and the fees for the work The services and other' provisions described on the Order(s) are . referred to. collectively as the "Wor k" while the results of the Workif any., arereferred to as the "Wor k Product " l t12. Method of Performance, Bentley, in _conjunction with its personnel; wilt: determine the method, details; and means of' performing the work to be carried: out for Subscriber'; including the use of sub -contractors -if deemed necessary Subscriber shalt have no right to: and shall not control the manner of determine the method of accomplishing such work :Subscriber may, however, require Bentley's personnel to observe at all titres the security and. safety policies of.Subseriber: In addition, Subscriber shall be entitled to exereise a broad general power of supervision arid control over the results or work performed by Bentley to ensure satisfactory performance. This power of supertision shall include the right to inspect, stop work, snake suggestions or reeoinmendauons as to the details: ot the Welk. and request modifications to the scope Oran Order 1.03 Scheduling. Bentley: will try to accommodate work schedule requests of Subscriber to the estent possible Should any persotmel of: Bentley beunable to perform scheduled :services because of illness, resignation, or other causes beyond Bentley's reasoriable control, Bentley will attempt to replace such personnel within: a reasonable time, but Bentley shall not be liable for failure if it is unable to do so, gia•ing'due regard to its ether commitments and priorities 1 04 . Repotting: Subscriber ' will advise Bentley of the individuals to whorrt Bentley's. manager will report progress on day-to-day work.. Subscriber and Bentley shall develop appropriate administrative procedures. for performance of.` work 'at Subscriber's- site; if necessary Subscriber shall periodically prepare an evaluation of the work performed by Bentley for submission.'to Bentley upon Bentley's request. 1 05 Place of Work. Certain projeets or tasks_ may require Bentley s perrvnnel:to perforin work for Subscriber al Subeerilier's premises:. Tit the event that such projects or tasks are required to be performed at Subscriber's premises, Subscriber agrees to provide working space acid facilities:, and any other services and material$ Bentley or its personnel may reasonably request in order to perform their work. Subscriber recognizes that .there may be a need to train Bentley's :personnel be the unique procedures used al Subscriber's Dation'. When Subscriber determines that .such training is necessary, Subscriber shall, unless otherwise agreed in writing, pay Bentley for its personnel's training time. 106. Non -Exclusive., Bentley shall retain the right to perform work for others during the terra of this Agreement Subscriber shall retain the right to cause work of the same or a diafferentkind to be performed by its own personnel or other contractors during the term of this Agreement. 07 Perpetual License lfpott full payment for the Work, Bentley shall grant Subscriber a paid-up, perpetual, royalty -free right and license SEt002524J•1ID005 5/11 to use the Work Product for Production Use Bentley retains all right, title and interest to the Work Product not otherwise panted to Subscriber': 1.011. Preexisting Works of Smiley Notwithstanding Section L07 of Exhibit C hereof; Bentley hereby reserves and retains ownership of all works which Bentley ereated unrelated to the Work performed pursuant to any Order, including but. not limited to Products (the "Pre -Existing. Works"), Bentley does riot grant Subscriber any rights or licenses with respect to the Pre -Existing Works' 1 09 Residuals. It is mutually acknowledged that 'during the normal course of its dealings with Subscriber and the Work, Bentley and its personnel and agents may become acquainted with ideas; concepts; knaw•how,methods, techniques; processes,. skills, and adaptations pertaining to the Work„ including those that Subscriber er considers to be proprietary or secret. Notwithstanding anything in. this Agreement to the contrary,: and regardless of any termination of. this Agreement, Bentley shall be entified to :use:, disclose, and otherwise employ any ideas; : concepts, Brow: how, methods; techniques, processes, and skills, adaptations, including. generalized features of the sequence, structure, and organization of any works of authorship, in conducting its business (including providing services or creating programming or materials fins' other customers), arid Subscriber shall not assert' against Betttley or its personnel any prohibition or restraint from so doing 1 10. Third -Party Interests. Subscriber s interest in andobligations with .respect to any programming, materials, or data to he obtained from third -party vendors, "regardless of whether obtained with the. assistance of Bentley, shall be determined ie accordance with the agreements and policies of such vendors.; 1.1 l Fees:. Bentley .shall ;be paid the fee as .speeilied: in each Order (which Bentley reserves the right to change upon at least sixty (60) days advance notice or at any time for any new Order or modified portion of an existing Order), or, if DO fee isspecifred, at Bentley's customary rates for the level of personnel providing such services 1.12 Expenses ,Subscriber shall :also pay either the actual cost of Bentley's reasonable: travel and living expenses or an agreed ere amount for such travel and living expenses (other than nonnal commutation travel) for Bentley' employees in the performance ef` Wort: set forth in each Order along with all other' out -of pocket expenses incurred by Bentley I 13 Estimates, Estimates of total fees for projects may be provided in an Orden:: but Bentley does not guarantee such estimates Bentley will, however, notify 'Subscriber as soon as possible if it will exceed the estimate, and Subscriber may theca terminate the project and pay only lot services actually rendered if Subscriber so chooses 1 14 Confidentiality. In the petformaiice of the Work, Bentley may acquire information of Subscriberwhich is proprietary, nonpublic and identified in writing as confidential by Subscriber , Bentley shall not disclose to anyone not employed by Subscriber nor use except on behalf of Subscriber any such confidential int'ormation acquired in the performance of the Work except as authorized' by Subscriber in writing and as may be permitted by Section I.09 of this Exhibit C. Bentley shall have no obligation of confidentiality with respect to any information ni Subscriber that (i) has entered the public domain other than through a. breach of this Agreement, (ii) has been rightfully obtained by Bentley from a third party with no obligation of confidentiality, or (iii) is previously known by Bentley as demonstrated by clear and convincing evidence Notwithstanding the foregoing restrictions. • Bentley and its personnel may use and disclose any information tothe extent required by an order of any court or other goverruuental authority Pageilof12 BENTLEY SELECT PROGRAM AGREEMENT Professional Services Exhibit C Dated as of'.Januaxy 2010. or as necessary for it or them to protect their interest in this Agreement, but in each case only after Subscriber has been se notified and has had the opportunity, if possibleto obtain reasonable protection for such information in connection with such disclosure: 1 IS.. Ferro This Exhibit C will become effective as of the date of the first executed Order and will continue in effect through the completion of each Order. 1 16_ termination of Orders. Subscriber or Bentley may terminate any uncompleted Order at any time by giving thirty (30) days written notice to the other patty. Upon such termination, Bentley agrees to stop. Work under the. Orderin question and to forward to: Subscriber all completed or uncompleted drawings, reports or other documents relating to the Work in the event of such termination Subscriber shall be liable only for such fees,costs and expenses as have accrued prior to the effective dateof such (emiination. 11'7. Prohibition on Hiring, Subscriber shall not solicit for employment of hire any Bentley employees providing professional services.hereundei for the duration of the Work:, plus a period of one (I) year alter completion of the professional services provided hereunder SEL002520 3/0005 6/11 Page 12 a112 BENTL EY SYSTEMS, INCORPORATED ATTACHMENT 1 SELECT PROGRAM AGREEMENT Bentley SELECT Agreernenfi Number: 1C163(0(03-5 CC03 Steps to a Pioperly Completed Attachment .1: 1 Indicate the Term of the Agreement below 2 Complete a Site Information foie for; each covered Site 3 Review the infoimationiegarding SELECTservet Online 4 Insert Attachment I into the Bentley SELECT Program Agreement Agreement TetnI* 12 Months 0 24 Months O 36 Months 0 Othei: "The Agreement Term is subject to Bentley's review and approval 5$1.€102710-1/0001 Attachment 1 BENTLEY SELECT PROGRAM AGREEMENT SITE INFORMATION Please complete a copy of this form for each covered Site (as defined in Exhibit B, Section 1,32) Bentley's processes for the delivery of License, Invoice and othei information are optimized for electronic delivery, For the most effective communication; please ensure that email addresses are provided for all: contact persons: Bentley will establish Online SELECTservices User permissions for the Technical Administrator designated below The Technical Administrator may grant all or some of those permissions to other users within the organization. Ail licensing fulfillment documents will be delivered to the Technical Administrator AlI Notices delivered under the Agreement shall be delivered to the Account / Billing Contact identified below or, in a subsequent notice to Bentley. Shipping Addiess: Billing Address (if different):. Ch/'o. 0,4 r puj C r1 S i. Company Company was+-ewakr- Depg r rn-e r t Site 664n PSV- Scher, Technical Administrat€tt Name brtanbueCetcya3 Coo Site Account! Billing Contact Name Email Address- E-mail Address 212-tp_iiDIN g4.. Address/Street (no P 0 Box) Address/Street (no P 0 Box) _EDIT riT'.. City TtA a.s i 8 1 • City State and Zip State and Zip Gni-irr PA -kJ Country 3(o! " 1210- ! ?Di Country Phone Phone SE1002730.110001 Bentley will add this site to SEL.ECTservex Online (a hosted, managed solution) for the management of your Bentley Product licenses Subscriber will install, activate and maintain a SELECTsetver gateway Service (a "Gateway") to manage pre -XM Bentley Productsat this Site. The new (or existing) Gateway will be physically located at the Shipping Addresslisted on the Site Information Page found in Attachment I . (Optional).: To discuss other Licensing options, please check the box below and a Bentley Representative will contact the Technical Administrator identified in the "Shipping Address" section. � Please contact the site Technical Administrator regarding t thea ice sing irptinns Por more information on Bentley, please visit www.b©ntley.com or call l -800'-BENTLEY Bentley SELECT SEL;0027.10 11(X701 Proposal for eB Plan Review Consulting Services Prepared For City of Corpus Christi November 6, 2014 www.bentley.com Bentley Systems, Incorporated F?Pi Be i m.ey Sustaining Infrastructure Bentle Sustaining Infrastructure November 6, 2014 y City of Corpus Christi Dan Grimsbo Director Community Development Corpus Christi, Texas 78415 Subject: Proposal for eB Plan Review Services www.hentIey.Com Dear Dan Grimsbo, Bentley Systems, Incorporated ("Bentley") is pleased to provide this proposal to City of Corpus Christi for the items described below. • Implementation of an electronic plan review solution via Bentley MANAGEservices • Integration to the City's Hansen v8.3 Dynamic Portal permitting software Detailed scheduling and resource assignment cannot be made before receipt and acceptance of a Purchase Order referencing this proposal and a signed copy of this proposal. The Professional Services in this proposal are offered on a fixed fee basis. I trust this proposal meets your needs. Bentley has an excellent history of client satisfaction and in this regard we view your success as our success. If you need additional information or would like to discuss anything contained in this document, please feel free to contact me. Sincerely, Gary Griffiths Sales Director Gary.Griffiths@bentley.com Office: (610) 458-6171 Bentley Systems, Incorporated Bentley Opportunity: 30387970 July 23, 2014 1 The information contained in this proposal is proprietary of Bentley and is not to be disclosed to any third party without Bentley's express prior written consent. Opportunity Number 30387970 Be ntLeye Sustaining Infrastructure Transit Communications Land Development Table of Contents 1. Executive Summary 3 2. Scope of Services 3 2.1 Software Installation 3 2.2 Design 3 2.3 Configuration 4 2.4 Customization/Tailoring 5 2.5 Integration 5 2.6 Acceptance testing 6 2.7 Training 6 2.8 Project Deliverables and Acceptance 6 2.9 Schedule 8 2.10 City of Corpus Christi Staffing 8 2.11 Assumptions, Limitations, Exclusions, and Constraints 8 3. Pricing 9 4. Terms and Conditions 10 5. Appendix A: eB Workflow Diagrams 13 6. Appendix B: eB Implementation Methodology 15 July 23, 2014 2 The rrforrrwtion ca tamed in this proposal is proprietor},, of 8errtkEy. This rnforrratfon is not to bae diselosed any third party without Bentley's express prior written consent Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development 1. Executive Summary Bentley understands that the City of Corpus Christi is looking to improve the processes and technology related to the review of plans and plan sets managed and reviewed by the Permitting and Planning departments. The eB solution for plan review will capture documents, activities, and all relevant data around the review process from end-to-end. Unlike other solutions that focus on the markup or edit of documents, Bentley's eB solution is built upon an open architecture and industry standards to ensure sustainability and applicability to all aspects of the enterprise. Consistent with Bentley's information management philosophy, the City of Corpus Christi can tap into reliable data at any time throughout the process by using eB. This proposal outlines the services for providing an eB electronic plan review solution via Bentley MANAGEservices with integration to Hansen v8.3 Dynamic Portal for the Permit and Planning departments at City of Corpus Christi. Bentley is providing eB software licenses free of charge as well as a significant discount on professional services for this project. It is our intention and understanding that we will work closely together in order to ensure that this project is a complete success and the result will be a solid and referenceable relationship between Bentley and the City of Corpus Christi. It is also our desire that together we will be able to openly discuss this successful project to industry peers and associations. 2. Scope of Services Bentley's deployment services are designed to ensure a successful deployment of eB based upon your organization's unique implementation requirements. Our deployments are also designed to ensure proper design and configuration from the very beginning to prevent costly rework later. A Bentley Project Manager will be assigned to ensure the success of your eB implementation from the kick-off meeting until the project is successfully closed out. For more information about the implementation methodology followed by Bentley, please see Appendix B. 2.1 Software Installation Bentley consultants will install eB in up to two environments in the Bentley MANAGEservices environment. One environment will be a test environment, with the other environment being the production environment. The following modules of eB will be installed: • eB Information Manager • eB Web Interface/Web Server 2.2 Design Bentley consultant(s) will review the proposed plan review process with City of Corpus Christi, validate the configuration, customizations and integration defined in this proposal and finalize the details. A Statement of Work document will be produced to define what will be implemented and how specific eB features and functionality are to be configured. The Statement of Work document will be approved by both parties and serve as the blueprint for the services to follow. July 23, 2014 3 The rirfoMrotion contained .in this proposal is proprietary of Bentley. ?tris information is not to be disclosed to any third party without Bentl'ey's express prior written conserrL Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development 2.3 Configuration Bentley consultant(s) will configure up to two environments of the eB Information Manager system as defined in the approved Statement of Work document. Configuration will be done in the test environment, which may be copied to the production environment. The eB Information Manager System configuration for the Permit department at City of Corpus Christi will consist of: • One (1) Permit - Plan Set Document class and template with up to 5 attributes • One (1) Permit - Plan Sheet Document class and template with the following attributes: o Building Review Status o Zoning Review Status o Fire Review Status o Engineering Review Status o Drawing Type • One (1) Permit - Workflow class and template as defined in Appendix A for Permit Department with four department reviewers • Six (6) Skills for the workflow tasks (Intake Coordinator, Lead Reviewer, four departments) • Three (3) Security Roles (Read Only, Reviewer, Administrator) • eB Workflow emails enabled for Work Exchange and Work Task Skill notification • Configure the Document class to automatically initiate the workflow when an eB document is created • Configure an eB Report to list status of Plan Set and Sheet documents based on workflow tasks The eB Information Manager System configuration for the Planning department at City of Corpus Christi will consist of: • One (1) Planning - Plan Set Document class and template with up to 5 attributes • One (1) Planning - Plan Sheet Document class and template with the following attributes: o Planning Review Status o Engineering Review Status o PM Review Status o Water Review Status o Sewer Review Status o Gas Review Status o Parks Review Status o Airport Review Status July 23, 2014 4 The information elan toined in this proposrrl is proprietary of 8errtley. This information is not to be disclosed to any third party without 8'erRtteya°'s express prior written consent= Be ntLeye Sustaining Infrastructure Transit Communications Land Development o Traffic Review Status o Fire Review Status o Storm Water Review Status o GIS Review Status o Drawing Type • One (1) Planning - Workflow class and template as defined in Appendix A for Planning Department with twelve department reviewers • Fourteen (14) Skills for the workflow tasks (Intake Coordinator, Lead Reviewer, twelve departments) • Three (3) Security Roles (Read Only, Reviewer, Administrator) • eB Workflow emails enabled for Work Exchange and Work Task Skill notification • Configure the Document class to automatically initiate the workflow when an eB document is created • Configure an eB Report to list status of Plan Set and Sheet documents based on workflow tasks Note: If a workflow assignee cannot complete their work task, a user with the correct permission will manually use the out-of-the-box functionality to change the work task assignee to allow for completion of the task. 2.4 Customization/Tailoring The following areas have been identified where eB will need further tailoring or customizations to meet City of Corpus Christi's business requirements. Customization will be done off-site by Bentley's Solution Center. If more customizations are identified during the design phase, Bentley will follow its change management procedure to change the scope of the project and adjust the pricing accordingly, for approval by City of Corpus Christi. • Provide one (1) SQLServer Reporting Service (SSRS) report with graphical indicators, based upon the Plan Set and Sheet eB Report data • Extract files from submitted zip files • Ability to Bulk update attributes for a Plan Set • Email plan review status to Applicant 2.5 Integration Bentley consultant(s) will develop an integration between eB and Infor's Hansen v8.3 permitting system. The most appropriate method of interfacing with these systems will be determined and defined in the Statement of Work document which shall be approved by City of Corpus Christi. Bentley will then develop and test this interface and deliver to City of Corpus Christi. The integration will provide the following key features: • Have the eB Plan Review website be invoked from the Hansen v8.3 Dynamic Portal (with applicable permit number) July 23, 2014 5 The rrforrrwtion ca tamed in this proposal is proprietor},, of 8errtkEy. This rnforrratfon is not to bae diselosed to may third party without Bentley's express prior written consent Be ntLeye Sustaining Infrastructure Transit Communications Land Development • eB Plan Review website to allow applicant to upload plan set of documents related to the permit number • At conclusion of specific plan set review milestones in eB (as illustrated in the Appendix A workflows), the Hansen system will be provided the review status notification 2.6 Acceptance testing The following tests will be performed to verify that the system meets the criteria and design defined in the Statement of Work document: • Unit testing will be performed by Bentley consultants and developers as they work on configuration and development tasks. • Factory testing will be performed by Bentley to ensure proper integration of all components. • Site Acceptance testing will be performed by Bentley, on-site on City of Corpus Christi's test environment, and witnessed by City of Corpus Christi. • Testing will be done against the Statement of Work document. If separate test plan and test scripts are required then Bentley will follow its change management procedure to change the scope of the project and adjust the pricing accordingly, for approval by City of Corpus Christi. 2.7 Training End-user training Bentley proposes end user training will utilize the "train -the -trainer" approach, where Bentley provides training to City of Corpus Christi's Trainer(s) and guidance for the City of Corpus Christi to create custom training materials and other handouts. These services will be accomplished during a one week onsite visit. 2.8 Project Deliverables and Acceptance As a part of this eB deployment, Bentley will deliver the following: Item # Deliverable Description Responsible Role Supporting Role Deliverable Acceptance P-1 Project Plan A document describing the Project Plan. Bentley Project Manager (PM) City of Corpus Christi PM City of Corpus Christi PM P-2 Statement of Work A document identifying the details of what will be implemented , what specific eB features and functionality are to be configured, and the method of interfacing to Hansen Dynamic portal and email to Applicants. Bentley Consultant Bentley PM City of Corpus Christi PM P-3 Project Execution Plan (PEP) A document describing the way the project is executed and managed. Bentley PM City of Corpus Christi PM City of Corpus Christi PM July 23, 2014 6 The rrforrrwtion ca tairied in this proposal is proprietor},, of Eterrtkey. This rnforrratfon is not to bae diselosed any third party without Bentl'ey's express prior written consent Be ntLeye Sustaining Infrastructure Transit Communications Land Development Item # Deliverable Description Responsible Role Supporting Role Deliverable Acceptance P-4 Project Communication Plan A document identifying how communications will be managed during the project. This may be included in the PEP. Bentley PM City of Corpus Christi PM City of Corpus Christi PM P-5 Project Closeout Summary A document identifying a summary of the tasks performed throughout the project, deliverables provided, any lessons learned and any future opportunities. Bentley PM Bentley Consultant and City of Corpus Christi PM City of Corpus Christi PM P-6 Project Status Reports Document(s) listing the current status of the project, including outstanding issues, risks and other items. Bentley PM City of Corpus Christi PM City of Corpus Christi PM P-7 Meeting Agendas and Minutes Document(s) describing items to be discussed at Project Meetings (Meeting Agendas) and the results of those project meetings (Meeting Minutes). Bentley PM City of Corpus Christi PM City of Corpus Christi PM P-8 Deliverable Acceptance Form Document(s) listing the deliverables and acceptance by the City of Corpus Christi PM Bentley PM City of Corpus Christi PM City of Corpus Christi PM The City of Corpus Christi Project Manager or identified designee(s) will review and approve deliverables identified in this proposal. The deliverable acceptance process will be as follows: • When complete, Bentley shall submit final deliverables and a copy of a "Deliverable Acceptance Form" to the City of Corpus Christi Project Manager or identified designee(s), who will conduct a review to determine the deliverables' conformance with the specifications in this proposal (including, without limitation, the project approved eB Implementation Plan, Training Checklist or other project approved documentation). Upon completion of this review the City of Corpus Christi Project Manager or designee(s) will complete the Deliverable Acceptance Form indicating acceptance or rejection City of Corpus Christi, and return it to the Bentley Project Manager. • If a deliverable is neither accepted nor rejected within ten (10) business days, the deliverable will be deemed to have been accepted by City of Corpus Christi without change or comment. City of Corpus Christi may also request an extension to the ten (10) day acceptance period, which will not be unreasonably withheld by Bentley unless it affects the project schedule, which could then trigger a change request that may impact the project timeline, resources and/or cost. • If City of Corpus Christi rejects a deliverable, City of Corpus Christi will provide Bentley with a written description of why the deliverable was rejected on the Deliverable Acceptance Form. If the identified deliverable discrepancies are mutually agreed to be July 23, 2014 7 The information elan toine.d in this proposrrl is proprietary of 8errtley. This information is not to be disclosed to ony third party without Beattey's express prior written consent= Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development within the specifications of this proposal or other project approved documentation, Bentley shall rework the deliverable at its sole cost as necessary to achieve its conformance with the specifications herein. If the discrepancies are mutually agreed to be outside the specifications, City of Corpus Christi shall either accept the deliverable as - is or request a change order. If the parties cannot come to an agreement regarding the discrepancies, the issue shall be elevated to respective management teams to discuss the deliverable and project specifications in detail. Bentley will track status of all project documentation including the deliverable approval process and status. Bentley will inform City of Corpus Christi if delays are to be incurred due to deliverable acceptance documents not being signed and returned in a timely manner. Bentley will indicate, via the status report, any potential impact to the project timeline for delayed acceptance. 2.9 Schedule A schedule will be finalized to reflect specific dates and times that are mutually acceptable upon final acceptance of this proposal and the issuance of a purchase order acceptable to Bentley. To ensure that Bentley understands City of Corpus Christi's goals, Bentley shall arrange a conference call with City of Corpus Christi and the consultant(s) to review the goals and objectives and any logistics once official award is obtained. 2.10 City of Corpus Christi Staffing The following personnel will be needed from City of Corpus Christi in order to deliver the project. For more information, please see Appendix B. • Project Manager • IT and Networking staff • Key User Business Representatives 2.11 Assumptions, Limitations, Exclusions, and Constraints • City of Corpus Christi's staff will be made available, as needed, throughout the duration of this implementation. • Bentley will provide only the functionality in currently released versions of our products, unless explicitly stated otherwise within this proposal. • City of Corpus Christi will have a Bentley MANAGEservices contract in place for their test and production environments • City of Corpus Christi will provide network access and network security access to the consultants as needed to accomplish the tasks outlined in this document. • City of Corpus Christi will be responsible for any 3rd party licensing of all software per their user licensing agreements (including Brava!). Training Assumptions, Limitations, Exclusions, and Constraints • City of Corpus Christi will be required to provide the training facility including the room, hardware, software, and projector. July 23, 2014 8 The rrrformation tcintoined in this proposal is proprietary of 8errtley. This rrtforrration is not to be ,disclosed to ony third par€y without 8erpttey's express prior written consent Be ntleye Sustaining Infrastructure Transit Communications Land Development • Any issues with the training environment found to be introduced City of Corpus Christi's IT efforts (such as software installation) will be deemed a variation in project scope with Bentley resolution time based on agreed rates. 3. Pricing Bentley will provide the consulting services described in this proposal on a Fixed Fee basis. Electronic Plan Review/eB Information Manager Software Costs Airfare (round trip) Hotel/Night Food/Day eB Information Manager No Charge 3 ProjectWise InterPlot Server No Charge 17 eB QuickLinks No Charge $150 TOTAL SOFTWARE COSTS $0.00 Software Support and Hosting Bentley MANAGEservices $60,000.00 eB Information Manager SELECT $6,212.00 ProjectWise InterPlot Server SELECT $622.00 eB QuikLinks SELECT $2,071.00 Bentley CONNECTIONS Passport SELECT (61) $5,124.00 TOTAL SOFTWARE SUPPORT AND HOSTING $74,029.00 Implementation Services Fixed Fee Implementation Services (included both Planning and Permitting) $205,000.00 Travel Expense Estimate (not to exceed) $7,075.00 TOTAL IMPLEMENTATION SERVICES $212,075.00 TOTAL COST FOR ELECTRONIC PLAN REVIEW SOLUTION $286,104.00 The travel expenses are estimated as follows: Cost Estimation Travel Expenses Description Airfare (round trip) Hotel/Night Food/Day Gas, Tolls, etc. Quantity 3 17 17 17 Unit Price $800 $150 $60 $65 July 23, 2014 9 The rrforrrwtion captained in this proposal is proprietor},, of EterrtkEy. This rnforrratfon is not to bae diselosed any third party without Bentley's express prior written consent Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development Price $2,400 $2,550 $1,020 $1,105 -$87,000 Estimated Expenses Subtotal Estimated Expenses Subtotal $7,075 Services pricing includes the following: Total Project Pricing Consulting Services Subtotal $292,000 Reference Site Discount -$87,000 Estimated Expenses Subtotal $7,075 Project Total $212,075 Proposed Services Milestone Payments are: Milestone Percentage Criteria Project Start 15% When the project kick off conference call is held SOW Delivery 15% When the Statement of Work (SOW) Document is delivered to the City for review Configuration of Test Environment 15% When Bentley validates the Test environment reflects the definition defined in the SOW Document Customizations 15% When Bentley validates Customizations in the Test environment reflects the definition defined in the SOW Document Integration 15% When Bentley validates Integration in the Test environment reflects the definition defined in the SOW Document Train the Trainer 10% When Bentley provides the onsite "Train the Trainer" training Configuration of Production Environment 15% When Bentley validates the Production environment reflects the definition defined in the SOW Document for configuration, customizations and integration 4. Terms and Conditions Bentley proposes to perform the work described in this proposal under the terms and conditions of the pre-existing SELECT Program Agreement by and between Bentley and City of Corpus Christi ("Subscriber") with CLA Number 14576635 (collectively hereafter, the "SELECT Agreement"). Additionally, unless your SELECT agreement states differently: • Should you wish to proceed with this project and your company issues purchase orders: — Please email the purchase order to Randy.McDaniel@Bentley.com as indication of your acceptance to proceed with the project under the terms and conditions described in this proposal. July 23, 2014 11 The rrrfirm1147tion contained in this proposal is proprietary of Bentley. ?tris information is not to be disdosed to pm.. third °o. without &&rtrev's express prior writterr cranserpL Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development — Please complete and sign the proposal acceptance below and email it to Randy.McDaniel@Bentley.com as indication of your acceptance to proceed with the project under the terms and conditions described in this proposal. — Mail the original purchase order and signed proposal to your account manager. • Should you wish to proceed with this project and your company does not issue purchase orders: — Please complete and sign the proposal acceptance below and email it to your account manager at Randy.McDaniel@Bentley.com as indication of your acceptance to proceed with the project under the terms and conditions described in this proposal. — Please also provide a written statement to your account manager that your company does not issue purchase orders and that Bentley should accept the signed proposal as indication of your order. • Bentley will invoice consulting services based on Milestone Payment schedule. • Bentley will invoice for actual expenses (i.e. airfare, rental car, meals, accommodations, conference calls, reproductions, etc.) related to the services described in this proposal if applicable. • Applicable shipping and taxes will be invoiced and may not be included in this estimate. • Consulting days are typically eight hours each, except for travel days which may vary. The exact length of the working day will depend upon your country's regulations. • To keep scheduled project dates, Bentley must schedule resources, book travel, etc. If Subscriber reschedules services and notification of a schedule change is received less than two full calendar weeks before the originally scheduled date, Bentley reserves the right to charge, and Subscriber agrees to pay, a rescheduling/cancellation fee of Rescheduling fee per scheduled person day plus any non-refundable reasonable expenses resulting from such changes will be charged. To minimize any such charges, please advise Bentley of any changes as soon as possible. • The parties agree that if there are any additional or different terms or conditions appearing on any purchase order(s) issued to Bentley by your organization after the date of this proposal, any such additional or different purchase order terms or conditions shall not apply to the products and services described in this proposal, even if Bentley executes the purchase order and/or even if Bentley processes the order. For any of your organization's additional or different terms or conditions to be binding on the parties (whether appearing on a purchase order or otherwise), the parties agree to implement any such additional or different terms or conditions via a separate written agreement only; otherwise no such terms and conditions shall apply to the project described in this proposal. In any event, the parties agree that at all times the applicable current SELECT Agreement, as well as the terms and conditions of this proposal, shall always take precedence over any and all other documents that may pertain to this transaction, specifically including, without limitation, any terms and conditions accompanying your organization's purchase order(s), whether accepted by Bentley or not in accordance with this paragraph. • The scope of services in this proposal is based upon information provided by Subscriber. Circumstances not contained in this information, or otherwise unknown to Bentley, may require an addition to the proposed scope of services. Moreover, any additional work July 23, 2014 10 The efil0f711Krifein c.ontoined in this proposal is proprietary of 8errtley. This information is not to be ,disclosed to ony third party without gerrtiey's express prior written consent Be ntLeye Sustaining Infrastructure Transit Communications Land Development that you may engage Bentley to execute will be subject to either a separate proposal or change control, and pricing where any discounts offered herein may not be available irrespective of whether it is completely new work or related to works delivered on the basis of this proposal. • Once you have accepted this proposal, Bentley will commence work in accordance with this proposal. If after commencement of the work described in this proposal, however, Subscriber properly opts to terminate the project in accordance with the SELECT Agreement, Subscriber will still be invoiced by Bentley for the following: — All remaining time that Bentley has worked on the project that has not yet been invoiced. — All costs already incurred by Bentley that have not yet been invoiced. — Any and all non-refundable costs for which Bentley may be liable. Pricing, terms, and conditions of this proposal are valid for 60 days from the submittal date of this document. To avoid delays in processing, please ensure the purchase order is signed, references the Bentley SELECT Program Agreement or any other contractual agreement in place, references this proposal, the Bill To address and payment terms of Net 30 Days. Credit terms are subject to approval by Bentley's credit department. Signed and Accepted: Company Name: City of Corpus Christi Printed Name: Signature: Title: Signature Date: Proposal Title: Proposal for eB Plan Review Services SELECT / CLA Number: 14576635 Opportunity Number: 30387970 July 23, 2014 11 The irwforrrwtian cantoined in this proposal is proprietary of 8errtkEy. This rnforr o on is 'lotto be disclosed to any third party without Bentley's express prior written consent i BentLev,, Sustaining infrastructure Transit Power Generation Communications Cadastre Land Develoiment Mining Buildi 5. Appendix A: eB Workflow Diagrams The eB Workflow for the Permit Department template configuration is illustrated in the diagram below. Permit Dept - Submit Plan Set Drawings Workflow C Po `=' 6 Hansen Dynamic Portal Pe mit Rppli anon File Upload Submit Uploaded Files '---- eceive"Incomplete', �eceive'Updatej `. "Receive'Approved>• ResubmitErnail}l Email J Email /f \\\ L Hansen Web Server Call eB Plan _ Review eceive Ineomple[e Status (eceioe Resubm"d� Status /] (eceive Complete `I 1,\ Status ■ a ■ Hosted Web Server ■ Upload files Unzip to Web Server Submitted File CC Intake Hosted Coordinator eB Server Create Set Create Child Plan Sheet Stan Set NotifyNo Han en & Hansen ify & No Han en & 4Plan Document Documents —11.Plan ',Workflow Applicant Applicant Applicant Incom Tete Set 11 • • Validate Set Drawing Approve ♦ Com iete Plan Set ■ Type on Pian Sheets Change Required Permit Department CC Lead Reviewer(4) Reviewer Revw j Consolidate incomplete Set Markup Place Set Markups rCharges Required— ■ Review / Markup Plan Set Hansen Dynamic Portal eB Plan Review in Hansen eB Plan Review Web She eB Email System July 23, 2014 13 The irbforrmibciia co ra tarrath in this pmposul is proprfetory of ErFTrileiy. rr3 ifv.rrnotlors is n o t to kke d xelosed to any third party without Ek,rdielg exp-ress a rimer written conserrE Awvi ,.bonligy.c arra Transit Power Generation Communications Cadastre Land Development Mining Buildi The eB Workflow for the Planning Department template configuration is illustrated in the diagram below. Planning Dept - Plan Set Drawings Workflow 1, (D Q G Hansen Dynamic Portal Pe mit Appli anon File Upload Submit Uploaded Files i eceive `Incomple-t Receive'Update) Receive'Approved'1 Email Resubmit' EmaiV Email /J a . r Hansen Web Server ceive Department /// ```���Complete Status Call eB Plan _ Review eteive I comple Status Receive Resubmit Status Receive Complete A Status ■ Hosted Web Server Upload files Unzip to Web Server Submitted File Hosted eB Server • Create Plan Set Document Create Child Plan Sheet Documents —fp St rt Set Workflow No ifyNo Han en & Applicant ify Han en & Applicant No Hansen Applicant dy Incomplete SeY-411I 4 CC Intake Coordinator Vali ate Set Drawing J Approve Com tete Plan Set Type on Plan Sheets 'Change Required Permit CC Lead Reviewer Review 1 Consolidate Incomplete Markup Plan Set Markups Department Reviewer(n) I—Changes Required Review Markup Flan Set Hansen Dynamic Portal eB Plan Review in Hansen eB Plan Review Web Site eB Email System July 23, 2014 14 The irtfpm-r b -on ntainecil in this prAriosal isrpraprreoryof&'errtley? T.prjiifommitoirsnot to bye disclosed to evilergrad party without eihtley express d rmi ten ecknrenit Awvirbonlig y.carra Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development 6. Appendix B: eB Implementation Methodology Project Implementation Approach Bentley Professional Services works in strict compliance with our project management methodology, the Bentley Solutions Methodology (BSM). BSM supports Bentley's mission to provide world-class value in technology, products, and services. BSM is a compilation of Bentley's standardized processes for end-to-end Professional Services project activity, thoroughly covering project definition, execution, communication, and completion aspects. • The methodology is based on over 20 years of implementation and training services expertise within Bentley Professional Services, best industry practices, and established methodologies such as the Project Management Institute's (PMI) Project Management Body of Knowledge (PMBOK© Guide) and PRINCE2®. • BSM is scalable to the size of the project from small consultancy projects to complex system implementations. As project risk and complexity increases, so does the governance. It is part of Bentley's philosophy that no matter how large or small a project, it is implemented to the highest possible standards. • Because Bentley is a global company, BSM has been designed to be flexible enough to accommodate necessary cultural differences between countries and industries without compromising its urpose of standardization at a high level. Bentley Professional Services couples BSM with formal project delivery training, a knowledge management approach to centrally harness and share best practices and lessons learned, a Professional Services Automation approach based on standard industry systems and tools, and most important, a pool of highly skilled resources. The level of expertise in Bentley Professional Services serves to strengthen the position of our partners and the users we are privileged to serve. More specifically, BSM is not just about making you feel good and our consultants motivated — it is a highly developed set of procedures, templates and tools that guide every project from start to finish. Key elements include: • Roles are defined • Procedures and guidelines are defined for key steps in each project phase, clearly delineating roles, responsibilities, tools, and deliverables • Procedures are accompanied by templates, evaluation tools, and checklists • Workflows and escalation procedures are defined • Project management processes are defined • Documentation and communication standards are defined • BSM training is mandated and BSM compliance is audited • Knowledge is shared and grown among a globally distributed team, via a powerful, knowledge management based user interface July 23, 2014 15 The rrrfi rrrrotior7 c.on Coined in this proposal is proprietary of 8errtley. This rrrformatio i is not to be ,disclosed to ony third party without gerettey's express prior written conserrL BentLeye Sustaining Infrastructure Transit Communications Land Development Several benefits are achieved from the use of standardized methodology such as BSM, including increased efficiency, consistency, and a shortened learning curve for new colleagues. However, the primary benefit resulting from BSM is a consistent high quality in Bentley's project delivery. Bentley follows a formal project methodology to provide and implement its software solutions. Project Management is done according to the standard Bentley Solutions Methodology (BSM) which is summarized below: BSM Project Implementation Project Close Project Startup Project Execution Internal Kickoff Meeting External Kickoff Meeting Prepare Project Execution Man Obtain User Approval and Finalize Execution Plan Draft Execution Plan Final Execution Plan Project Monitoring Internal Closeout Meeting External Closeout Meeting User Satisfaction Review Review Results of Closeout Meetings and Satisfaction Review Software Delivery Project Close Review Document Project Closeont Report Consultancy Delivery Training Delivery July 23, 2014 16 The irfomiation contained in this proposal is proprietor), of 8errtkey. This rnforrratfon is not to bte trsdosed any third party without Bentley's express polar written consent Be ntLeye Sustaining Infrastructure Transit Ps Communications Land Development BSM allows Bentley to execute and complete implementation projects with: • Clear objectives, deliverables and timelines • A clear review process • Clear allocation and protection of resources • The use of best practices to ensure the fastest possible project delivery, solutions quality and overall robustness of the implementation • Constant and consistent management control • On-time project completion • World-class quality results every time Roles in Project Execution City of Corpus Christi Executive Sponsor The Executive Sponsor is the user "champion" of the Implementation Project and is also usually the Executive who has the budget and signing authority for the project. The Executive Sponsor would be involved at key communication meetings during the implementation and at regular briefing and steering committee meetings. City of Corpus Christi Project Manager This Project Manager manages the project from the user side, and works closely with the Bentley Project Manager. He or she would be involved in every aspect of the implementation, so would have a significant time commitment to the project. City of Corpus Christi Business Representatives (the Core Team) These representatives, assigned from the affected User departments, provide input to the Solution Document and participate in Training and Design StudySessions. They typically become the champions of the new system and play a significant role in communications, training and support. City of Corpus Christi IT/MIS Representatives These representatives from the user's MIS or IT department will be involved during the software installation planning, preparation, platform configuration, system administration training, workstation installations and production rollout. It is Bentley's goal to transfer sufficient technical knowledge to the user's IT group in order for them to be completely self-sufficient in their ability to install, configure and troubleshoot the solution. City of Corpus Christi System Administrator The System Administrator is responsible for maintaining and updating the configuration of the Bentley system after the project team has completed the initial configuration. The configuration may consist of, but is not limited to, data model, users and groups, input and output devices, security, and file systems. The system administrator is typically a full time member of the project team for the duration of the project. Bentley Project Manager This Project Manager (PM) manages the project on behalf of Bentley to ensure that a solution is delivered to agreed-upon requirements, time scales, budgets and standards. The PM is July 23, 2014 17 The efil0M1417ff011 contained .in this proposal is proprietary of Bentley. This information is not to be disclosed to any third' party without Bentley's express prior written consera Be ntLeye Sustaining Infrastructure Transit Communications Land Development responsible for all communication between Bentley and the customer, as well as for all planning, budgetary control, resource allocation and any other implementation issues. Bentley Consultants The Business Consultant will primarily be responsible for all activities relating to the design analysis and definition of the solution. A Solution Description document is produced by the consultant, which defines the user's requirements and solution design. Bentley Technical Engineers (Tech) The Technical Engineer is responsible for installation and configuration of the Bentley product(s) and the database on a given network according to an Implementation Checklist. Where customization or program modifications are required, Technical Engineers will perform these functions. Bentley Trainer The Trainer is responsible for providing product and solution training to the project team as well as advice and assistance on training the user population. Bentley can be contracted to provide training to all users, if desired, but many users prefer the "train -the -trainer" approach. July 23, 2014 18 The rrforrrwtion ca tamed in this proposal is proprietor},, of EterrtkEy. This rnforrratfon is not to bae diselosed any third party without Bentley's express prior written consent About Bentley Bentley is the global leader dedicated to providing comprehensive software solutions for sustaining infrastructure. Architects, engineers, constructors, and owner -operators are indispensable in improving our world and our quality of life; the company's mission is to improve the performance of their projects and of the assets they design, build, and operate. Bentley sustains the infrastructure professions by helping to leverage information technology, learning, best practices, and global collaboration — and by promoting careers devoted to this crucial work. Founded in 1984, Bentley has more than 2,800 colleagues, offices in more than 50 countries, annual revenues surpassing $500 million, and since 1993, has invested more than $1 billion in research, development, and acquisitions. Nearly 90 percent of the Engineering News -Record Top Design Firms are Bentley subscribers, and a 2008 Daratech study ranked Bentley as the world's #2 provider of geospatial software solutions. For more information, visit www.bentley.com or call 1 -800 -BENTLEY. July 23, 2014 Contact Bentley Bentley Worldwide Headquarters 685 Stockton Drive Exton, PA 19341, United States 1 -800 -BENTLEY (1-800-236-8539) Outside the United States +1610-458-5000 Bentley EMEA Bentley Systems International Limited 2 Park Place Upper Hatch Street Dublin 2 Ireland Phone: +353 1 436 4600 Fax: +353 1 416 1261 Bentley Asia Bentley Systems Beijing Co., Ltd. Unit 1402-06, Tower 1 China Central Place, Beijing 100025 China (+86) 10 5929 7000 19 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of January 13, 2015 Second Reading for the City Council Meeting of January 20, 2015 DATE: December 1, 2014 TO: Ronald L. Olson, City Manager FROM: Daniel Grimsbo, P.E., Director, Development Services Department DanG@cctexas.com (361) 826-3595 Closing a portion of a utility easement out of a part of Lots 1 & 2, Cabaniss Acres No. 2 CAPTION: Ordinance abandoning and vacating an 8,598 -square foot portion of an existing 10 -foot wide utility easement out of a part of Lots 1 & 2, Cabaniss Acres No. 2, located west of the Ayers Street public right-of-way, and north of the Saratoga Boulevard (SH 357) right-of-way; and requiring the owners, Ernesto & Vienna Flores, to comply with the specified conditions. PURPOSE: The purpose of this item is to eliminate the 10 -foot utility easement and allow for the future development of the subject property. BACKGROUND AND FINDINGS: Ernesto & Vienna Flores (Owners) are requesting the abandonment and vacation of the existing 10 -foot wide utility easement which traverses part of Lots 1 & 2, Cabaniss Acres No. 2, located west of the Ayers Street public right-of-way, and north of the Saratoga Boulevard (SH 357) right-of-way. The abandonment and vacation of the utility easement is being requested by the Owners in conjunction with the future development of the subject property. Staff recommends that payment of fair market value be waived in accordance with City Code of Ordinance Section 49-13. The Owner will be replatting said property and upon replatting will be dedicating a utility easement to off -set the requested abandonment. The owner has been advised of and concurs with the specified conditions of the Ordinance in regards to the easement dedication and the recording and filing of the ordinance. 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 action will, adversely impact the Owner's ability to move forward with future development of the subject property. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: These requirements are in compliance with the City Code of Ordinances, Section 49-12 and 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 utility easement abandonment. FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital Not applicable Fiscal Year: 2014- 2015 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. The Owners must comply with all the following specified conditions of the easement closure ordinance: a. Owner must dedicate new utility easements of equal or greater value than the property being released by the City in this easement closure action, in accordance with City of Corpus Christi, Code of Ordinance Section 49-12, within 180 days of Council approval so that the requirement of paying fair market value for the property 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 the Owners' expense in the Official Deed and Map Records of Nueces County, Texas, in which the affected property is located, with a copy of the recording provided to the City. c. Prior to the approval of the building permit and the permitting of any construction on the affected property, the Owners must submit up-to-date surveys, abstracted for all easements and items of record, to the Director of Development Services, or his designee. d. Owners must comply with all specified conditions of the ordinance within 180 days of City Council approval. e. Failure to comply with all the conditions outlined in this Ordinance within the specified time frame will hereby make the Ordinance null and void. LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Ordinance abandoning and vacating an 8,598 -square foot portion of an existing 10 -foot wide utility easement out of a part of Lots 1 & 2, Cabaniss Acres No. 2, located west of the Ayers Street public right- of-way, and north of the Saratoga Boulevard (SH 357) right-of-way; and requiring the owners, Ernesto & Vienna Flores, to comply with the specified conditions. WHEREAS, Ernesto & Vienna Flores ("Owners") have requested the abandonment and vacation of the existing 10 -foot wide utility easement which traverses part of Lots 1 & 2, Cabaniss Acres No. 2; WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate an 8,598 -square foot portion of an existing 10 -foot wide utility easement, subject to compliance by the Owners with the conditions specified in this ordinance. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Pursuant to the request of Ernesto & Vienna Flores, ("Owners"), an 8,598 - square foot portion of an existing 10 -foot wide utility easement out of a part of Lots 1 & 2, Cabaniss Acres No. 2, located west of the Ayers Street public right-of-way, and north of the Saratoga Boulevard (SH 357) right-of-way, as recorded in Volume 41, Page 164, and Volume 43, Page 64, of the Official Deed and Map Records of Nueces County, Texas, is abandoned and vacated by the City of Corpus Christi ("City"), subject to the Owners' compliance with the conditions specified in Section 2 of this ordinance. Exhibit "A," which is a metes and bounds description of the subject portion, and Exhibit "B," 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 their entireties. SECTION 2. The abandonment and vacation of the utility easement described in Section 1 of this ordinance is expressly conditioned upon the Owners' compliance with the following requirements: a. Owner must dedicate new utility easements of equal or greater value than the property being released by the City in this easement closure action, in accordance with City of Corpus Christi, Code of Ordinance Section 49-12, within 180 days of Council approval so that the requirement of paying fair market value for the property 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 the Owners' expense in the Official Deed and Map Records of Nueces County, Texas, in which the affected property is located, with a copy of the recording provided to the City. c. Prior to the approval of the building permit and the permitting of any construction on the affected property, the Owners must submit up-to-date surveys, abstracted for all easements and items of record, to the Director of Development Services, or his designee. d. Owners must comply with all specified conditions of the ordinance within 180 days of City Council approval. e. Failure to comply with all the conditions outlined in this Ordinance within the specified time frame will hereby make the Ordinance null and void. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 20 , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas The foregoing ordinance was read for the second time and passed finally on this the day of , 20 , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED this the ATTEST: Rebecca Huerta City Secretary day of , 20 Nelda Martinez Mayor MURRAY BASS, JR., P.E., R.P.L.S. NIXON M. WELSH, P.E., R.P.L.S. www.bass-welsh.com e-mail: nixmw(&aol.com BASS & WELSH ENGINEERING TX Registration No. F-52 Survey Registration No. 100027-00 P.O. Box 6397 Corpus Christi, TX 78466-6397 August 11, 2014 3054 S. ALAMEDA, ZIP 78404 361 882-5521— FAX 361 882-1265 e-mail: murrayjr(aaol.com Field Note Description Being an easement situated in Nueces County, Texas, over and across portions of Lot 1 and Lot 2, Cabaniss Acres No. 2 as shown on the maps thereof recorded in Volume 41 at Page 164, and Volume 43, Page 64, respectively, of the Map Records of Nueces County, Texas and being more particularly described by metes and bounds as follows: BEGINNING at the southeast corner of the heretofore referenced Lot 1, Cabaniss Acres No. 2 for the most southerly southeast corner of this tract; THENCE N 61°49'30" W along the south line of Lot 1 at 212.59 feet pass the southwest corner of Lot 1 and the most southerly southeast corner of Lot 2, Cabaniss Acres No. 2 and in all a distance of 697.31 feet to the southwest corner of Lot 2; THENCE N 28°38'00" E along the west line of Lot 2, a distance of 162.56 feet to a point for the most northerly northwest corner of this tract, said point lying in the south boundary of an existing 10 foot wide utility easement; THENCE S 61°51'26" E along the south boundary of said 10 foot utility easement, a distance of 10.00 feet to a point in the east boundary of the existing 10.0 foot wide utility easement for the northeast corner of this tract; THENCE S 28°38'00" W 10.0 feet east of and parallel to the west line of Lot 2, along the margin of the existing 10.0 utility easement a distance of 152.56 feet to a point for an interior corner of this tract and a corner of the existing 10.0 foot utility easement; THENCE S 61°49'30" E al0.0 feet north of and parallel to the south line of Lot 2 at 484.00 feet pass the west boundary of Lot 1 and in all a distance of 687.24 feet to a point in the east boundary of Lot 1 and the west right-of-way line of Ayers Street for the most northerly southeast corner of this tract; THENCE S 28°13'16" W along the east boundary of Lot 1 and the west right-of-way line of Ayers Street, a distance of 10.00 feet to the POINT OF BEGINNING forming a tract embracing 8,598 square feet (0.197 acres).. ray Bass, R. P. L. S. Note: Basis of Bearing is the south line of Lot 2, Cabaniss Acres No. 2, as shown on the plat thereof MBJ:sab 14040 -Field Note Desc.doc EXHIBIT A Page 1 of 1 :D0 Jz (98U HS) )VMSS UE DOC#20080286 LOT 4 CABANISS ACRES No. 2 VOL 67 PG 238 M.R.N.C.T. S61'51'26"E 10.00' - 15 UE TO BE DEDICATED (0 11)Ln c‘i co 1-L-1 0 0 tr) cy 50'X70' SIGN EASEMENT DOC#2007052061 O.R.N.C.T. AREA SUMMARY 8598 SF 0.197 AC TO BE CLOSED 20053 SF 0.46 AC TO BE DEDICATED1 0 Prepared by: Bass & Welsh Engineering 3054 So. Alameda St. Corpus Christi, Tx. 78404 (361) 882-5521 (phone) (361) 882-1265 (fax) Engineering Firm No. 52 Surveying Firm No. 100027-00 LOT 3 CABANISS ACRES No. 2 VOL 55 PG 51 M.R.N.C.T. Lxis Lau 1ULL ADDITIONAL UE TO BE DEDICATED EXISTING 10' UTILITY EASEMENT TO BE CLOSED ARREDON DO INVESTMENTh & HOLDING LLC. CALLED 2.0 ACRES FILE #2007048301 O. N .7 LOT 2 CABANISS ACRES No. 2 VOL 43 PG 64 M.R.N.C.T. S6149'30"E 687.24' N6149 30 W 697.31 1 5-1J E TO BE DEDICATED BOHEMIAN COLONY LANDS 68.317 ACS OUT OF LOTS 3 & 4 SEC 7 LOT 1 CABANISS ACRES No. 2 VOL 41 PG 164 M.R.N.C.T. LOT 3 BLOCK 12 SARATOGA PLACE VOL 50 PG 142 M.R.N.C.T. POINT OF BEGINNING UTILITY EASEMENT CLOSURE LOTS 1 & 2 CABANISS ACRES No. 2 EXHIBIT B 10- 8-14 Job No: 14040 Scale: 1"=100' Date: 10-28-14 Drawing No: 1 Plotscale: 1:1 Sheet 2 of 2 Right -of -Way Closure West of Ayers St. and East of Hwy. 286 (Crosstown) AGENDA MEMORANDUM First Reading Ordinance the City Council Meeting of January 13, 2015 Second Reading Ordinance for the City Council Meeting of January 20, 2015 DATE: November 5, 2014 TO: FROM: Ronald L. Olson, City Manager Emily Martinez (361) 882-7448 emartinez@ccredc.com Type A Grant for CC Cold Storage, LLC and South Texas Cold Storage, LLC CAPTION: Ordinance Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and CC Cold Storage, LLC and South Texas Cold Storage, LLC ("Cold Storage") to provide a grant of up to $265,000, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Cold Storage Business Incentive Agreement for the creation of jobs; and appropriating $265,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund for said business incentive grant from the Type A Corporation to Cold Storage; and changing the FY 2014-2015 operating budget, adopted by Ordinance No. 030294, by increasing expenditures by $265,000. PURPOSE: Cold Storage will invest in their cold storage facility on McBride Lane and create and retain jobs in Corpus Christi. They will invest $1,500,000 and create five full-time jobs and retain six full- time jobs with an annual payroll of $399,360. BACKGROUND AND FINDINGS: Without a new owner the cold storage facility had been slated for closing. CC Cold Storage and South Texas Cold Storage purchased the building and will upgrade the facility to attract more business. Several major local food companies use this facility. Had it been allowed to close, the closest cold storage facility for Corpus Christi regional vendors would be in the Valley or San Antonio. The Port's cold storage facility was sold and converted into a warehouse. Cold Storage capital outlays will include refrigeration upgrades that will allow it to service more food products due to the colder temperatures. ALTERNATIVES: The company is not eligible for any other incentives. OTHER CONSIDERATIONS: Cold Storage has been a fixture in this community. This grant will be used to invest in their facility and the retention and creation of jobs. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and incentivizing business to expand and thrive in Corpus Christi. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Engineering FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 265,000 265,000 Encumbered / Expended Amount This item 265,000 265,000 BALANCE 0 0 Fund: Type A 1140 RECOMMENDATION: Staff recommends approval of the Type A Grant to Cold Storage in the amount of $265,000 for improvements to their cold storage facility and the creation and retention of jobs. LIST OF SUPPORTING DOCUMENTS: Type A Agreement Project Service Agreement Page 1 of 3 Ordinance Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and CC Cold Storage, LLC and South Texas Cold Storage, LLC ("Cold Storage") to provide a grant of up to $265,000, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Conexia Business Incentive Agreement for the creation of jobs; and appropriating $265,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund for said business incentive grant from the Type A Corporation to Cold Storage; and changing the FY 2014-2015 operating budget, adopted by Ordinance No. 030294, by increasing expenditures by $265,000. 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 Cold Storage for the creation of at least five full-time jobs and the retention of at least six full-time jobs an average annual salary of at least $29,950 over a five year period will best satisfy this goal; Whereas, City Council deems that it is the best interest of the City and citizens to approve the business incentive agreement for creation of jobs between the Type A Corporation and Cold Storage; Whereas, there is a need for a business incentive project service agreement between the City and the Type A Corporation for the implementation and administration of the business incentive agreement for the creation of jobs between the Type A Corporation and Cold Storage. Now, therefore, be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. That the business incentive agreement for the creation of jobs between the Type A Corporation and Cold Storage that provides for the creation and the retention of jobs within the City of Corpus Christi, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project service agreement between the City and Type A Corporation for the implementation and administration of the business incentive agreement with Cold Storage, which is attached to this ordinance as Exhibit A. ORDINANCE - Cold Storage Page 2 of 3 SECTION 3. That $265,000 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 Conexia for the creation of jobs. SECTION 4. That Ordinance No. 030294, which adopted the FY 2014-2015 Operating Fund, is changed to increase proposed expenditures in the No. 1140 Business/Job Development Fund by $265,000 for a business incentive grant from the Type A Corporation to Cold Storage for the improvements to their meat processing facility and the creation of jobs. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Nelda Martinez Mayor APPROVED: day of , 2015. Corpus Christi, Texas That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2015, by the following vote: Nelda Martinez Brian Rosas Carolyn Vaughn Colleen McIntyre Rudy Garza Lillian Riojas Lucy Rubio Mark Scott Chad Magill ORDINANCE - Cold Storage Page 3of3 That the foregoing ordinance was read for the second time and passed finally on this the day of , 2015, by the following vote: Nelda Martinez Brian Rosas Carolyn Vaughn Colleen McIntyre Rudy Garza Lillian Riojas Lucy Rubio Mark Scott Chad Magill PASSED AND APPROVED, this the day of , 2015. ATTEST: Rebecca Huerta City Secretary ORDINANCE - Cold Storage Nelda Martinez Mayor BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND CORPUS CHRISTI COLD STORAGE, LLC FOR CREATION AND RETENTION OF JOBS 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 South Texas Cold Storage, LLC, ("South Texas Cold Storage"), a Texas limited liability corporation, and Corpus Christi Cold Storage, LLC, ("CC Cold Storage"), a Texas limited liability 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 118th 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 October 18, 2010, amended the Corporation's Guidelines and Criteria for Granting Business Incentives ("Type A Guidelines"), which the City Council approved on November 9, 2010; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, CC Cold Storage will purchase the cold storage facility located at 260 McBride Lane and refurbish it to reduce to storage temperature to be able to handle more and different products; WHEREAS, CC Cold Storage and South Texas Cold Storage proposes to invest approximately $1,500,000 over a five year period; Page 1 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 WHEREAS, CC Cold Storage holds legal title to the real property on which South Texas has their facilities and business operations located within the City and has a binding lease agreement with South Texas for South Texas's use of said real property; WHEREAS, CC Cold Storage and South Texas Cold Storage propose to invest approximately $1,500,000 to expand the existing cold storage facilities over a five year period, including furniture, fixtures, and equipment; WHEREAS, on August 11, 2014 the Board determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to CC Cold Storage and South Texas Cold Storage, through this Agreement with CC Cold Storage and South Texas Cold Storage, to be used by CC Cold Storage and South Texas Cold Storage to refurbish the cold storage facility and will result in the creation of five full-time jobs and the retention of six existing full-time jobs, with an estimated annual average salary of $24,960. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and CC Cold Storage and South Texas Cold Storage 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. The Performance Requirements and Grants are listed in Exhibit A, which is attached to and incorporated into this Agreement. 4. Job Creation Qualification. a. In order to count as a created job under this Agreement, a "job" must be as 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. b. CC Cold Storage and South Texas Cold Storage agree 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. c. CC Cold Storage and South Texas Cold Storage agree to provide Corporation with a sworn certificate by authorized representatives of each business assisted under this Agreement certifying the number of full-time permanent employees employed by the business. d. CC Cold Storage and South Texas Cold Storage shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Ag reement. Page 2 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 5. Utilization of Local Contractors and Suppliers. CC Cold Storage and South Texas Cold Storage 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. CC Cold Storage and South Texas Cold Storage agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of CC Cold Storage 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 CC Cold Storage and South Texas Cold Storage 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. Utilization of Disadvantaged Business Enterprises ("DBE). CC Cold Storage and South Texas Cold Storage 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 govemmental entity in the jurisdiction of the home office of the business as complying with state or federal standards for qualification as such an enterprise. CC Cold Storage and South Texas Cold Storage 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. CC Cola Storage and South Texas Cold Storage agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of CC Cold Storage and South Texas Cold Storage 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 CC Cold Storage and South Texas Cold Storage 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. 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. 7. Living Wage Requirement. In order to count as a permanent full-time job under this agreement, the job should provide a "living wage" for the employee. The target living wage under this agreement 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. Page 3of9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 8. 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. 9. Warranties. CC Cold Storage and South Texas Cold Storage warrants and represents to Corporation the following: a. CC Cold Storage and South Texas Cold Storage 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. CC Cold Storage has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. CC Cold Storage and South Texas Cold Storage 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. CC Cold Storage and South Texas Cold Storage 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 person executing this Agreement on behalf cf CC Cold Storage and South Texas Cold Storage is duly authorized to execute this Agreement on behalf of CC Cold Storage and South Texas Cold Storage. f. CC Cold Storage and South Texas Cold Storage does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, CC Cold Storage and South Texas Cold Storage is convicted of a violation under §U.S.C. Section 1324a(f), CC Cold Storage and South Texas Cold Storage shall repay the payments received under this Agreement to the City, with interest at the Wall Street Joumal Prime Rate, not later than the 120th day after the date CC Cold Storage and South Texas Cold Storage has been notified of the violation. 10. Compliance with Laws. During the Term of this Agreement, CC Cold Storage and South Texas Cold Storage shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 11. Non -Discrimination. CC Cold Storage and South Texas Cold Storage covenants and agrees that CC Cold Storage and South Texas Cold Storage will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the Page 4 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 0514 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. 12. Force Majeure. If the Corporation or CC Cold Storage and South Texas Cold Storage 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 CC Cold Storage and South Texas Cold Storage 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. 13. Assignment. CC Cold Storage and South Texas Cold Storage 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. 14. Indemnity. CC Cold Storage and South Texas Cold Storage covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ("Indemnitees') against all liability, dc.mage, 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 CC Cold Storage and South Texas Cold Storage 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. CC Cold Storage and South Texas Cold Storage 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. 15. Events of Default by CC Cold Storage and South Texas Cold Storage. The following events constitute a default of this Agreement by CC Cold Storage and South Texas Cold Storage: a. The Corporation or City determines that any representation or warranty on behalf of CC Cold Storage and South Texas Cold Storage 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 5 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 b. Any judgment is assessed against CC Cold Storage and South Texas Cold Storage or any attachment or other levy against the property of CC Cold Storage and South Texas Cold Storage with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. CC Cold Storage and South Texas Cold Storage makes an assignment for the benefit of creditors. d. CC Cold Storage and South Texas Cold Storage files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by CC Cold Storage and South Texas Cold Storage become delinquent, and CC Cold Storage and South Texas Cold Storage fails to timely and properly follow the legal procedures for protest or contest. f. CC Cold Storage and South Texas Cold Storage changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. g. CC Cold Storage and South Texas Cold Storage fails to comply with one or more terms of this Agreement. 16. Notice of Default. Should the Corporation or City determine that CC Cold Storage and South Texas Cold Storage is in default according to the terms of this Agreement, the Corporation or City shall notify CC Cold Storage and South Texas Cold Storage in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for CC Cold Storage and South Texas Cold Storage to cure the event of default. 17. Results of Uncured Default by CC Cold Storage and South Texas Cold Storage. 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 CC Cold Storage and South Texas Cold Storage, 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. CC Cold Storage and South Texas Cold Storage shall immediately repay all funds paid by Corporation to them under this Agreement. b. CC Cold Storage and South Texas Cold Storage 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 CC Cold Storage and South Texas Cold Storage of all sums due, the Corporation and CC Cold Storage and South Texas Cold Storage shall have no further obligations to one another under this Agreement. Page 6 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 18. 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 CC Cold Storage and South Texas Cold Storage's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time CC Cold Storage and South Texas Cold Storage 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. 19. CC Cold Storage and South Texas Cold Storage specifically agrees that Corporation shall only be liable to CC Cold Storage and South Texas Cold Storage for the actual amount of the money grants to be conveyed to CC Cold Storage and South Texas Cold Storage, and shall not be liable to CC Cold Storage and South Texas Cold Storage 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 CC Cold Storage and South Texas Cold Storage to be accompanied by all necessary supporting documentation. 20. 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. Page 7 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 0514 21. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: CC Cold Storage and South Texas Cold Storage: Corpus Christi Cold Storage, LLC Attn: Butch Pool 260 McBride Lane 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. 22. Incorporation of other documents. The Type A 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 CC Cold Storage and South Texas Cold Storage 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. 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 temis and provisions of this Agreement. Page 8 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 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 CC Cold Storage and South Texas Cold Storage. 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. (Remainder of this page intentionally left blank) Page 9 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 Corpus Christi Business & Job Development Corporation By: Bart Braselton President Date: Attest: By: Rebecca Huerta Assistant Secretary Corpus Christi Cold,8for e, LL By: South Texas Cold Storage, LLC Corbett Pool Mana ' g11/1 mber Date: / / /,7 THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on /14W7,7.1204 /9"1/4 , 2014, by Corbett Pool, Managing Member, for Corpus Christi Cold Storage, LLC and South Texas Cold Storage, LLC on behalf of the corporation. f otary Public State of Texas Page 10 of 9 Type A Business Incentive Jobs Creation and Retention Agreement 09 05 14 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS 1. CC Cold Storage and South Texas Cold Storage shall invest at least $1,500,000 to [purpose], over a [# of years] year period. CC Cold Storage and South Texas Cold Storage shall further, over the term of this Agreement, create [# of created jobs] full-time jobs and retain [# of retained jobs] full-time jobs, with an average annual salary of $[amount] as described in the schedule below. Year Number of New Jobs Number of Retained Jobs Annual Payroll Capital Investment 1 0 6 149,760 2 0 6 149,760 500,000 3 1 7 174,720 500,000 4 2 9 224,640 500,000 5 2 11 274,560 0 a. Grants, not to exceed $53,000 per year and a cumulative total of $265,000 over five years, are available on a per job created/retained basis. b. Should the Company fall below the Performance Standards in any one year, the Company shall receive a reduced percentage of the Cash Incentive in effect that year. Such reduction will be in that percentage equal to the percentage the Company's performance falls below the Performance Standards. However if the Company falls below 70% then there is no payment for that year. By way'pf example only 'assurne;1 i.`tial Cash Incentive payment is required in the fifth year of this Agreement and the:, erforrpance Standards have not been reached. For the purposes Qf"calculating'th'ts redhead cash Incentive, it is agreed that $2,120 of yearly incentive amount, or,...4%. ;gf the'IC40.,incentive is being given premised on the payroll requirements of this Agreement and $50,880 of yearly incentive amount or 96% is attributable to the capital investment requirements. The reduced Cash Incentive shall be calculated as follows: Annual payroll commitment: 2nd year: 2nd year actual: Percent of Total $274,560 $219,648 4% 5th year incentive calculation: Reduced Cash Incentive calculation: 4% x 80% x $53,000 = $1,696 Total Cash Incentive Annual Investment commitment: 2nd year: 2nd year actual: Percent of Total $1,000,000 $800,000 96% Economic Incentive Calculation: 80% x 96% x $53,000 = $40,704 $1,696 + $40,704 = $42,400 A-1 Type A Business Incentive Agreement Corpus Christi Cold Storage 09 09 14.docx In the 5th year, the Company would receive a reduced Cash Incentive of $138,900 from the Corporation for not meeting the performance goals for annual payroll requirements. 2. The Corporation will award a grant to CC Cold Storage and South Texas Cold Storage based on the formula above, payable not later than June 15 of each year if CC Cold Storage and South Texas Cold Storage makes the required capital investment in buildings, furniture, fixtures and equipment, retains the minimum number of in the preceding year described in paragraph 1 above (collectively, the "annual performance benchmarks"). 3. CC Cold Storage and South Texas Cold Storage will display signage that states that they are recipients of Type A funding. This signage will be provided to CC Cold Storage and South Texas Cold Storage by the Board and will be displayed in a location that is visible to a visitor to their facility. A-2 Type A Business Incentive Agreement. Corpus Christi Cold Storage 09 09 14 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 October 18, 2010, which the City Council approved on November 9, 2010; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, South Texas Cold Storage LLC and Corpus Christi Cold Storage LLC ("Cold Storage") has submitted a proposal to the Type A Corporation for a $265,000 grant for the creation and retention of jobs at their cold storage facility; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund Cold Storage's creation and retention jobs; and WHEREAS, the Type A Corporation and Cold Storage have executed a business incentives agreement for the creation of jobs related to Cold Storage's cold storage facility. 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 Cold Storage related to their cold storage facility in Corpus Christi ("Business Incentive Agreement"). Page 1 of 3 Business Service Agreement - Cold Storage 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 the same date as the Business Incentive agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Service Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Service Agreement or the application of this Project Service Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Service Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Service Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Service Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Service Agreement, then the remainder of this Project Service Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or 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 remainder of this page intentionally left blank. Page 2 of 3 Business Service Agreement - Cold Storage The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson City Manager Bart Braselton President Date: Date: Attest Rebecca Huerta City Secretary Business Service Agreement - Cold Storage Page 3 of 3 AGENDA MEMORANDUM First Reading for the City Council Meeting of January 13, 2015 Second Reading for the City Council Meeting of January 20, 2015 DATE: TO: Ronald L. Olson, City Manager December 18, 2014 FROM: Floyd Simpson, Chief of Police floods@cctexas.com 886-2603 Appropriating $1,323,658.59 from the Crime Control and Prevention District unreserved fund balance in to the Crime Control District Fund CAPTION: Ordinance appropriating $1,323,658.59 from the unreserved fund balance in No. 9010 Crime Control District Fund for "one-time" expenditures in the FY 2014-2015 operating budget, and changing the FY 2014-2015 operating budget adopted by Ordinance No. 030294 by increasing expenditures by $1,323,658.59. PURPOSE: On December 17, 2014 the Crime Control Board approved $1,323,658.59 for one time expenditures. BACKGROUND AND FINDINGS: Approved expenditures include upgrades to the Mobile Command Post, improvements to the Coban Video Interview Rooms, tourniquets and medical supplies for "Go" bags, Tasers, Patrol/SWAT rifles and ammunition, survivor agility training dummy, defensive tactics mats, radars, dive team equipment, canine equipment, riot gear, digital cameras, and improvements to the police headquarters. The "unaudited" fund balance as of 09/30/2014 is $4,511,918. Historically the Crime Control District Board approves funds for the purchase of onetime items each fiscal year. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Conforms to City Policy EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal Finance OMB FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 1,721,213.09 1,721,213.09 Encumbered / Expended Amount 49,598.00 49,598.00 This item 1,323,658.59 1,323,658.59 BALANCE 347,956.50 347,956.50 Fund(s): 9010 Crime Control and Prevention District Fund RECOMMENDATION: Staff recommends approval of the ordinance. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance Appropriating $1,323,658.59 from the unreserved fund balance in No. 9010 Crime Control District Fund for "one-time" expenditures in the FY 2014-2015 operating budget; and changing the FY 2014-2015 operating budget adopted by Ordinance 030294 by increasing expenditures by $1,323,658.59. WHEREAS on December 17, 2014 the Crime Control and Prevention District Board approved $1,323,658.59 for one time expenditures. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $1,323,658.59 is appropriated from the unreserved fund balance in the No. 9010 Crime Control District Fund for "one-time" expenditures in the FY 2014-2015 operating budget. SECTION 2. That the FY 2014-2015 Operating Budget, adopted by Ordinance No. 030294, is changed by increasing expenditures by $1,323,658.59. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of January 20, 2015 Second Reading Ordinance for the City Council Meeting of January 27, 2015 DATE: TO: December 22, 2014 Ronald L. Olson, City Manager FROM: Stacie Talbert Anaya, Interim Director StacieT©cctexas.com 361-826-3494 FY15 Elderly Nutrition Program (ENP) Grant Award CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to accept and appropriate a $631,131 grant from the Area Agency on Aging of the Coastal Bend in the No. 1067 Parks and Recreation grants fund for the FY 2015 Senior Community Services, Elderly Nutrition Program. PURPOSE: Appropriate grant funds for the FY15 Elderly Nutrition Program. BACKGROUND AND FINDINGS: The Elderly Nutrition Program (ENP) is made available through the Area Agency on Aging of the Coastal Bend and through this appropriation provides funding for the continuation of the Senior Community Services, Elderly Nutrition Program based on FY 2015 Planning Amounts as authorized by the Coastal Bend Council of Governments. The fund authorization period is effective October 1, 2014 through September 30, 2015. Total planning funding amounts for the Elderly Nutrition Program (ENP) Grant FY '15 is $631,131. This grant requires a minimum of 10% City matching funds which is met through funds budgeted in General Fund 1020, Senior Center Operations. Locally, these projects include the Elderly Nutrition Program (Congregate and Home Delivered Meals), Title XX Meals on Wheels and Benefits Counseling. The Benefits Counseling service is a component of the Health Information Counseling & Advocacy Program of Texas (HICAP). The Elderly Nutrition Program coordinates the congregate and home delivered meals operations to provide a fully prepared, well-balanced noon meal to senior center members and homebound and/or disabled persons throughout the City. The meals are prepared at the Nutrition Education and Service Center located on the Del Mar College West Campus. We project to serve 83,052 congregate meals; 79,269 home delivered meals; 46,291 Title XX Meals on Wheels; 14,278 Managed Care meals; 2100 Sponsored Meals for a total of 224,990 meals and 355 hours of Benefits Counseling service units during fiscal year October 2014 through September 2015. ALTERNATIVES: Eliminate the Elderly Nutrition Program services. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: City Council must authorize the City Manager to execute a contract or agreement to receive and appropriate grant funds on an annual basis for the continuation of the Elderly Nutrition Program. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal, Finance FINANCIAL IMPACT: This grant requires a minimum of 10% City matching funds, which were appropriated as part of the FY14 City budget General Fund. X Operating X Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2013- 2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 0 0 Encumbered / Expended Amount 0 0 This item $ 631,131 $ 631,131 BALANCE $ 631,131 $631,131 FUND(S): The revenue from this reimbursement program is budgeted in the Parks & Recreation Grant Fund 1067; Project/Grant 810815. Comments: N/A RECOMMENDATION: Staff recommends that City Council accept the FY15 Grant Award. LIST OF SUPPORTING DOCUMENTS: Ordinance Attachment - Notification of FY15 Grant Planning Amount Memorandum Notification of FY 15 Number 1 Area Agency on Aging of the Coastal Bend, Fiscal Year 2015 Contracting Plan Summary Ordinance authorizing the City Manager or designee to execute all documents necessary to accept and appropriate a $631,131 grant from the Area Agency on Aging of the Coastal Bend in the No. 1067 Parks and Recreation grants fund for the FY 2015 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 designee is authorized to execute all documents necessary to accept and appropriate a $631,131 final grant from the Area Agency on Aging of the Coastal Bend in the No. 1067 Parks and Recreation Grants Fund for the FY 2015 Senior Community Services — Elderly Nutrition Program. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas That the foregoing ordinance was read for the second time and passed finally on this the day of , by the following vote: Nelda Martinez Brian Rosas Rudy Garza Lucy Rubio Chad Magill Mark Scott Colleen McIntyre Carolyn Vaughn Lillian Riojas PASSED AND APPROVED, this the day of ATTEST: Rebecca Huerta Nelda Martinez City Secretary Mayor COASTAL BEND Aging & Disability resource Center /Area Agency on Aging WIPE COMM BND COASTAL BEND COUNCIL OF GOVERNMENTS October 20, 2014 Ms. Elsa Munoz, Superintendent City of Corpus Christi - Parks & Recreation Dept. Post Office Box 9277 Corpus Christi, Texas 78469 Re: NFA (Notification of Funds Available) for FY2015 Dear Ms. Munoz: Enclosed is your first allocation for FY2015. These funds are provided under the Title 111 of the Older Americans Act of 1965, as amended. We have received all updated documents for FY2015, including FY2015 budget work papers, debarment certification, audit certification form, current insurance, current health inspection and updated emergency plans - all necessary documentation to maintain continuance of the current contract. Also enclosed is a copy of CBCOG Resolution 2931, authorizing Mr. Buckner to execute FY2015 Contract Amendments indicating a planning amount for each service area. The planning amounts will be adjusted to actual as soon as the Texas Department on Aging and Disability Services awards full FY2015 funding. If you have any questions about the enclosure, please call the office or send your inquiry by email. S incerely, onfiti Betty Ldmb, Director Area Agency on Aging enclosure s.Wan AndkdAOiWMM1FNFY1STIFJN LtrZafCC 1040-14 cc: Aldilia Saldivar Finance - Federal Grants LOCATION: 2910 LEOPARD STREET; CORPUS CHIRSTI, TEXAS 78408 MAILING: POST OFFICE BOX 9909: CORPUS CHIRSTI, TEXAS 78469 www.aaacoastalbend.org 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 POST OFFICE BOX 9909 CORPUS CHRISTI, TEXAS 78469 SUBCONTRACTOR: Date: October 20, 2014 Ms. Elsa Munoz, Superintendent City of Corpus Christi Parks & Recreation Department Post Office Box 9277 Corpus Christi, Texas 78469 CONTRACT PERIOD: 10/01/2014 - 09/30/2015 CONTRACT NUMBER: AA3-1148.4 AWARD ISSUANCE NUMBER: 1 This Notification of Funds Available is issued as an addendum to your contract with the Coastal Bend Council of Governments — Area Agency on Aging / Coastal Bend Aging and Disability Resource Center for the period October 1, 2014 through September 30, 2015. 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. IFINEMNIF PROGRAM FY14 FY14 FY14 FY14 Prior Contract Title III Award NSIP Award Cumulative Award this Action (1) Award CONGREGATE MEALS III-C1ISGR/NSIP $ -0- $ 27, 780.00 HOME DELIVERED MEALS III C2ISGRINSIP $ 0 $ 30,725.00 SUPPORTIVE SERVICES III -B $ 0 $ 0 $ 27,780.00 $ -0- $ 30,725.00 $ 3,655.00 $ -0- TOTAL AWARD $ -o $ 62,160.00 $ -0- $ 3,655.00 $ 62,160.00 / (1) This award represents initial funding for FY15 that has been allocated to your agency through October 22, 2014. John P. Buckner, Executive Director Coastal Bend Council of Governments 6 AgmanAuipcc/AAArr.naarrFriamFA/C.ICC NFAi 16 26 u cc. Aldilia Saldivar Finance - Federal Grants R:1 (ATTACHMENT B-3) COASTAL BEND COUNCIL OF GOVERNMENTS RESOLUTION NO. 2931 A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE FISCAL YEAR 2015 AMENDMENTS TO CURRENT CONTRACTS AND VENDOR AGREEMENTS WITH LOCAL SERVICE PROVIDERS FOR THE PROJECT PERIOD OCTOBER 1, 2014 THROUGH SEPTEMBER 30, 2015 SUPPORTING OLDER AMERICAN'S ACT NUTRITION PROGRAMS IN THE PLANNING AMOUNT OF S1,649,860. WHEREAS, the Fiscal Year 2015 planning budget for region -wide nutrition programs was based on actual Fiscal Year 2014 funding support for each service area less carryover from Fiscal Year 2013 from Title III Older Americans Act Funds, State General Revenue and Nutrition Services Incentive Program (NSIP) funds; and WHEREAS, service providers' 2015 budget work papers and unit rate calculation forms for Fiscal Year 2015 were received and reviewed (based on FY2014 funding less any carryover from FY2013) including the updated 2015 performance objectives, budgets and unit rates relating to nutrition and supportive services for persons sixty years of age and over in the eleven county Coastal Bend Region; and WHEREAS, when actual funding awards for Fiscal Year 2015 are received from the Texas Department of Aging and Disability Services, contracts and annual spending benchmarks for vendors will be adjusted accordingly; and WHEREAS, on September 8, 2014 the Advisory Council on Aging reviewed the proposed contracting plan totaling $1,649,860 and recommended executing Fiscal Year 2015 amendments to current contracts and vendor agreements which continue to reflect different payment methodologies such as unit rate or cost reimbursement for contracts and/or vendor agreements, and supporting various unit rates for providers for Fiscal Year 2015 as indicated in the attached Fiscal Year 2015 Contracting Plan Summary NOW, THEREFORE, BE IT RESOLVED, that the Coastal Bend Council of Governments concurs in the recommendation of its Advisory Council on Aging that authorizes its Executive Director to finalize negotiations and execute Fiscal Year 2015 amendments to current contracts and vendor agreements with local service providers for the project period October 1, 2014 through September 30, 2015 for the use of Title III Older Americans Act, State General Revenue and Nutrition Services Incentive Program funds in the planning amount of $1,649,860. Duly adopted at a meeting of the Coastal Bend Council of Governments this 26th day of September 2014. ATTEST: RRY S I 1' ON, CHAIRMAN Area Agency on Aging of the Coastal Bend Fiscal Year 2015 Contracting Plan Summary (1) Based on Title III, SGR, and NSIP Planning Allocations (2) (3) 9/812014 Provider Service Area FY2015 PLANNING FUNDS FY2015 DADS -111 FUNDED SERVICES, UNIT RATES & PERSONS SERVED CONTRACT I METHODOLOGY Title IIIISGR NSIP Ping Total DADS Ping Budget Budget Ping Amt (21(3) (2) (3) (2X3) DADS FY15 Est'd Persons Total DADS Monthly Reimbursement Served Units Funded Benchmark Unit Rate (DADS Funded) Units for DADS Units Contract Type Aransas Co. Council on Aging Aransas Co. Congregate Meals 5 12,680 $ 7,181 5 19,861 9,560 3,272 273 $ 6 07 90 Vendor -Unit Rate Home Delivered Meals 54,426 16,872 71,298 23,447 14,404 1,200 4.95 57 Vendor -Unit Rate _ Total 67,106 24,053 91,159 NIA N/A NIA City of Corpus Christi Congregate Meals City of Corpus Christi 235,807 66,512 302,319 83,052 40,689 3,391 7 43 1,247 Contract -Unit Rate Home Delivered Meals 261,530 52,661 314,191 79,269 63,473 5,289 4.95 483 Contract -Unit Rate Benefits Counseling 14,621 0 14,621 355 325 27 _ 44.99 162 Contract -Unit Rale Total 511,958 119,173 631,131 NIA NIA NIA N/A Community Action Agency on South Texas (2) _ Congregate Meals Jim Wells, Brooks & 194,089 $ 40,920 235,009 64,250 47,096 3,925 4 99 438 Contract -Unit Rate Home Delivered Meals San Patncio & Bee 142,394 $ 29,732 172,126 39,250 34,773 2,898 4.95 257 Contract -Unit Rate Transportation Counties 52,741 0 52,741 10,000 9,000 750 5.86 107 Contract -Unit R Total 389,224 70,652 459,876 NIA NIA NIA Duval County Congregate Meals Duval County 29,306 24942 54,248 40,452 14,662 1,222 3.70 pending 222 Vendor -Unit Rate Home Delivered Meals 35,049 16355 51,404 23,166 8,878 740 5 79 pending 75 Vendor -Unit Rate Total 64,355 41,297 105,652 NIA NIA NIA NIA kleberg County Congregate Meals Kleberg & Kenedy Co. 46,781 19159 65,940 23,970 13,853 1,154 4.76 130 Vendor -Unit Rate Home Delivered Meals 35,966 19781 55,747 26,732 11,262 939 4 95 105 Vendor -Unit Rate Total 82,747 38,940 121,687 NIA NIA N/A NIA AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of January 20, 2015 Public Hearing/Second Reading Ordinance for the City Council Meeting of January 27, 2015 DATE: January 14, 2015 TO: Ronald L. Olson, City Manager THROUGH: Wes Pierson, Assistant City Manager (361) 826-3082 wesp@cctexas.com First Reading Ordinance Designating Cheniere Reinvestment Zone CAPTION: Approving an ordinance designating the Cheniere Reinvestment Zone within the City limits under the Property Redevelopment and Tax Abatement Act (the "Act"), (Chapter 312 of the Texas Tax Code) PURPOSE: To designate the Cheniere reinvestment Zone, within the City of Corpus Christi, Texas and within the extra territorial jurisdiction, under the Act, thus allowing projects in that area to be eligible for certain economic incentives by other taxing entities. BACKGROUND AND FINDINGS: Cheniere plans to construct a natural gas liquefaction facility in three phases, or "trains", which will be constructed on land located within City limits and within City's extraterritorial jurisdiction. The first train of the Facility will be constructed at a cost of at least One Billion Five Hundred Million Dollars ($1,500,000,000) and employ at least ninety (90) full-time employees; (ii) the second train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees; and (iii) the third train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees. This ordinance will allow projects on that site to be eligible for certain economic development incentives from taxing entities. The Cheniere project will be on the La Quinta site but also extend from the water's edge into Corpus Christi Bay. Since these docks will extend into the city limits of Corpus Christi. The City of Corpus Christi needs to establish a reinvestment zone. A city may establish reinvestment zones within its city limits. A reinvestment zone will be in effect for five years unless it is renewed by the City. Any agreements based on a reinvestment zone can extend beyond the five years. ALTERNATIVES: The City must create the reinvestment zone to grant a tax abatement and to allow other taxing entities to decide whether to grant a tax abatement. OTHER CONSIDERATIONS: This reinvestment zone should spur development at the La Quinta site, helping the Port, the Counties, and the City through increased tax revenues and job creation. CONFORMITY TO CITY POLICY: Defining and establishing the Reinvestment Zone is consistent with the City's stated goals of promoting economic development and incentivizing business to expand and thrive in Corpus Christi. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital x Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE RECOMMENDATION: Staff recommends the Council designate the Cheniere Reinvestment Zone. LIST OF SUPPORTING DOCUMENTS: Ordinance Attachment A — Metes and Bounds Ordinance Designating the Cheniere Reinvestment Zone within the City limits under the Property Redevelopment and Tax Abatement Act ("the Act"), (Chapter 312 of the Texas Tax Code) Whereas, the Texas Property Redevelopment and Tax Abatement Act ("the Act"), Texas Tax Code Chapter 312 as amended authorizes the City Council of the City of Corpus Christi to designate a zone within the City limits and/or within the City's extra territorial jurisdiction for property tax abatement under the Act; and Whereas, it is the policy of the City to encourage the redevelopment of areas wherein the creation and retention of new jobs and investment will benefit the area economy provide needed economic opportunities strengthen the real estate market and generate tax revenues to support local services; and Whereas, Cheniere has requested that the City designate as a reinvestment zone the site within the City limits on which Cheniere plans to make an investment to construct improvements the Cheniere site which site is more particularly described on Exhibit A attached hereto; and Whereas, the Cheniere site meets the criteria for a reinvestment zone as stated in Section 312.201 of the Act; and Whereas on January 20, 2015 notice of a public hearing on the designation of the Cheniere Reinvestment Zone was published in a newspaper of general circulation in the City of Corpus Christi and on January 20, 2015 notice was given by US Mail requested to the presiding officer of the governing body of each taxing unit including property in the proposed Zone in accordance with the Act; and Whereas the City Council of the City of Corpus Christi conducted a public hearing on January 27, 2015 at which all interested persons were entitled to speak and present evidence for or against the designation of the Zone for temporary property tax abatement. Now therefore be it resolved and ordained by the City Council of the City of Corpus Christi Texas SECTION 1. Creation of Zone. The City of Corpus Christi finds and determines that the Cheniere site within the City limits meets the criteria to be designated as a reinvestment zone stated in Section 312.201 of the Act and is reasonably likely as a result of the designation to contribute to the expansion of primary employment and will attract major investment in the Zone that would be a benefit to the property and would contribute to the economic development of the City and that this area should be designated as the Cheniere Reinvestment Zone. The location and boundaries of the ORDINANCE CHENIERE REINVESTMENT ZONE 01 27 14 Zone are more particularly described on Exhibit A attached hereto and incorporated by reference herein. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta Nelda Martinez City Secretary Mayor APPROVED: day of , 2015. Corpus Christi, Texas That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2015, by the following vote: Nelda Martinez Brian Rosas Carolyn Vaughn Colleen McIntyre Rudy Garza Lillian Riojas Lucy Rubio Mark Scott Chad Magill ORDINANCE CHENIERE REINVESTMENT ZONE 01 27 14 That the foregoing ordinance was read for the second time and passed finally on this the day of , 2015, by the following vote: Nelda Martinez Brian Rosas Carolyn Vaughn Colleen McIntyre Rudy Garza Lillian Riojas Lucy Rubio Mark Scott Chad Magill PASSED AND APPROVED, this the day of , 2015. ATTEST: Rebecca Huerta Nelda Martinez City Secretary Mayor ORDINANCE CHENIERE REINVESTMENT ZONE 01 27 14 EXHIBIT A CHENIERE SITE ORDINANCE CHENIERE REINVESTMENT ZONE 01 27 14 182428 METES AND BOUNDS DESCRIPTION OF A 52.25 ACRE TRACT Being 52.25 acres of land, out of a 212.20 acre tract of land as described in Document No. 490819, Official Public Records of San Patricia County, Texas, aise being out of a 328.9 acre tract, referred to as "Tract 1, Parcel2A", described In Document No. 2001000017, Official Public Records of Nueces County, Texas, and a 832.0 acre tract referred to as "Reynolds/Alcoa Retained Tract 1" in Document No. 2001000017, Official Public Records of Nueces County, Texas, and being more particularly described by metes and bounds as follows: Commencing at a found 5/8 inch iron rod, being the southeast corner of a 1252 acre tract.referred to as "Reynolds/Alcoa Retained Tract 3" fn DocunientNo.20010b0017, Official Public.Records.of Nueces County, Texas, said comer having a State Plane Grid Coordinate Of N17,21.1,109.14`, E;.1,383,532.78', NAD' 83, Texas South Zone, and said comer also being an inside comer of said 212;20 acre tract as shown in MEI Govind drawing no. 0309-501-004 and drawing no.0309-501-005; Thence along the northeasterly boundary of sald 21220 acre tract, S 17-32.44 E;250;80 feet .to the Point of Beginning and northeast comer of this herein described tract, said; comer having a State Plane Grid Coordinate of N 17,210,870.02', E, 1,383,608.38', NAD' 83, Texas South Zone,,and being on the Mean Higher High Water Une of Corpus Christi Bay; Thence 517-32-44 E, 46.08 feet, to an interior corner of this herein described tract, same behig an interior corner of said 212.20 acre tract Thence 5 01-10-32 E, 767.00 feet, to a point on the on the south line.nf a-31.82 acre tract, referred to as "Tract 1, Parcel 5" as recorded in Document No. 200100007.7, Official public Records of Nueces County, Texas, said point being the Port of Corpus Christi Authority North Bulkhead Line, also being the southeast corner of said 21220 acre tract, same beingthe southeast corner of this herein described tract; Thence along the south boundary of this herein described tract, the south boundary of said 212.20 acre tract, the North Bulkhead Une, N 77-30-59 W, 8569.00 feet, to the southwest corner of this herein described tract, same being the -southwest corner of sald 212.20 acre tract" Thence leaving said North Bulkhead Line, N07-00-29 W, 244.22 feet, to an interior corner of this herein described tract, said corner being on the west boundary line of said 21220 acre tract, and also being on said Mean Higher High Water Une (MHHW); Thence along said Mean Higher High Water line as follows: N 87-07-14 E, 13.56 feet; S 32-02-58 E, 21.05 feet; N 68-07-0$ E, 19.87 feet; S 61-24-17 E, 14.94feet; N 45-48-36 E,13.55 feet; N 25-00-56 W, 72.49 feet Thence 5 85-4321 W, 4223 feet, to an interior corner of this herein described tract, said comer being on the westboundary line of said 212.20 acre tract Thence along the west boundary of said 212.20 acre tract, N 07-00-29 W, 30.33 feet, to the northwest corner of this herein described tract, and being on saki Mean Higher High Water Line; Thence with said Mean Nigher High Waterline (MHHW) as follows: N 84-40-25 E, 16.36 feet; S 84-44-31 E, 50.13 feet; 503-16-16 E; 36.14 feet; S 72-16-10 E, 17.07 feet; N 53-23-13 E,27.28 feet; S 87-50-01E, 30.47 feet; N 82-2156 E,49.49 feet; N 87-19-40 E, 40.23 fee S 62-13-54 E, 24.71 feet; 331-48-7.9 E, 30.33 feet 662 182428 N 37-21-50 W, 9.14 feet; N 48-34-53 E, 60.83 feet; N 88-0421 E, 61.52 feet; S 62-33-10 E, 49.74 feet; S 85-11-41 E, 51.68 feet N 79-36-23 E, 36.81 feet; N 65-12-45 E, 35.50 feet; 5 79-22-43 E, 56.99 fleet; 556-38-50 E, 58.76 feet 5 48-44-43 E, 111.54 feet; 5 52-35-41 E, 46.53 feet 5 85-06-59 E, 40.01 feet; 5 60-20-57 E, 12.72 feet; 5 35-27-18 E, 37.43 feet; 5 60-04-28 E, 39.02 feet; 5 84-37-50 E, 20.21 feet; N 59-26-24 E, 36.04 feet N 45-55-06 E, 27.10 feet; N 66-5549 E, 27.43 feet S 74-12-19 W, 47.14 feet N 86-06-05W, 28.83 feet; Thence N 74-45-18 W, 16.89 feet, along said Mean Higher High Water line, to the Point of Beginning and containing 52.25 acres of land, more or less. Notes: 1) Bearings are State Plane Grid, Texas South Zone, NAD' 83. 2) MHHW Line based on TCOON Gauge "Ingleside" 663 182428 METES AND BOUNDS DESCRIPTION OF A 52.25 ACRE TRACT Being 52.25 acres of land, out of a 212.20 acre tract of land as described in Document No. 490819, Official Public Records of San Patricia County, Texas, aise being out of a 328.9 acre tract, referred to as "Tract 1, Parcel2A", described In Document No. 2001000017, Official Public Records of Nueces County, Texas, and a 832.0 acre tract referred to as "Reynolds/Alcoa Retained Tract 1" in Document No. 2001000017, Official Public Records of Nueces County, Texas, and being more particularly described by metes and bounds as follows: Commencing at a found 5/8 inch iron rod, being the southeast corner of a 1252 acre tract.referred to as "Reynolds/Alcoa Retained Tract 3" fn DocunientNo.20010b0017, Official Public.Records.of Nueces County, Texas, said comer having a State Plane Grid Coordinate Of N17,21.1,109.14`, E;.1,383,532.78', NAD' 83, Texas South Zone, and said comer also being an inside comer of said 212;20 acre tract as shown in MEI Govind drawing no. 0309-501-004 and drawing no.0309-501-005; Thence along the northeasterly boundary of sald 21220 acre tract, S 17-32.44 E;250;80 feet .to the Point of Beginning and northeast comer of this herein described tract, said; comer having a State Plane Grid Coordinate of N 17,210,870.02', E, 1,383,608.38', NAD' 83, Texas South Zone,,and being on the Mean Higher High Water Une of Corpus Christi Bay; Thence 517-32-44 E, 46.08 feet, to an interior corner of this herein described tract, same behig an interior corner of said 212.20 acre tract Thence 5 01-10-32 E, 767.00 feet, to a point on the on the south line.nf a-31.82 acre tract, referred to as "Tract 1, Parcel 5" as recorded in Document No. 200100007.7, Official public Records of Nueces County, Texas, said point being the Port of Corpus Christi Authority North Bulkhead Line, also being the southeast corner of said 21220 acre tract, same beingthe southeast corner of this herein described tract; Thence along the south boundary of this herein described tract, the south boundary of said 212.20 acre tract, the North Bulkhead Une, N 77-30-59 W, 8569.00 feet, to the southwest corner of this herein described tract, same being the -southwest corner of sald 212.20 acre tract" Thence leaving said North Bulkhead Line, N07-00-29 W, 244.22 feet, to an interior corner of this herein described tract, said corner being on the west boundary line of said 21220 acre tract, and also being on said Mean Higher High Water Une (MHHW); Thence along said Mean Higher High Water line as follows: N 87-07-14 E, 13.56 feet; S 32-02-58 E, 21.05 feet; N 68-07-0$ E, 19.87 feet; S 61-24-17 E, 14.94feet; N 45-48-36 E,13.55 feet; N 25-00-56 W, 72.49 feet Thence 5 85-4321 W, 4223 feet, to an interior corner of this herein described tract, said comer being on the westboundary line of said 212.20 acre tract Thence along the west boundary of said 212.20 acre tract, N 07-00-29 W, 30.33 feet, to the northwest corner of this herein described tract, and being on saki Mean Higher High Water Line; Thence with said Mean Nigher High Waterline (MHHW) as follows: N 84-40-25 E, 16.36 feet; S 84-44-31 E, 50.13 feet; 503-16-16 E; 36.14 feet; S 72-16-10 E, 17.07 feet; N 53-23-13 E,27.28 feet; S 87-50-01E, 30.47 feet; N 82-2156 E,49.49 feet; N 87-19-40 E, 40.23 fee S 62-13-54 E, 24.71 feet; 331-48-7.9 E, 30.33 feet 662 182428 N 37-21-50 W, 9.14 feet; N 48-34-53 E, 60.83 feet; N 88-0421 E, 61.52 feet; S 62-33-10 E, 49.74 feet; S 85-11-41 E, 51.68 feet N 79-36-23 E, 36.81 feet; N 65-12-45 E, 35.50 feet; 5 79-22-43 E, 56.99 fleet; 556-38-50 E, 58.76 feet 5 48-44-43 E, 111.54 feet; 5 52-35-41 E, 46.53 feet 5 85-06-59 E, 40.01 feet; 5 60-20-57 E, 12.72 feet; 5 35-27-18 E, 37.43 feet; 5 60-04-28 E, 39.02 feet; 5 84-37-50 E, 20.21 feet; N 59-26-24 E, 36.04 feet N 45-55-06 E, 27.10 feet; N 66-5549 E, 27.43 feet S 74-12-19 W, 47.14 feet N 86-06-05W, 28.83 feet; Thence N 74-45-18 W, 16.89 feet, along said Mean Higher High Water line, to the Point of Beginning and containing 52.25 acres of land, more or less. Notes: 1) Bearings are State Plane Grid, Texas South Zone, NAD' 83. 2) MHHW Line based on TCOON Gauge "Ingleside" 663 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: January 27, 2015 Agenda Item: Approving an ordinance designating the Cheniere Reinvestment Zone within the extra territorial jurisdiction of the City of Corpus Christi Texas City and within the City limits under the Property Redevelopment and Tax Abatement Act (the "Act"), (Chapter 312 of the Texas Tax Code) Amount Required: $ NA 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 January 20, 2015 Action Item for the City Council Meeting of January 27, 2015 DATE: TO: THROUGH: January 2, 2015 Ronald L. Olson, City Manager Wes Pierson, Assistant City Manager (361) 826- 3082 wesp@cctexas .com Chapter 380 Agreement for Corpus Christi Liquefaction, LLC (Cheneire) CAPTION: Approving a resolution authorizing the City Manager or designee to execute a Chapter 380 Economic Development Incentive Agreement with Corpus Christi Liquefaction, LLC ("Agreement") for certain economic development grants for development of a liquid natural gas facility within the City's extraterritorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits for the benefit of the City. PURPOSE: The Chapter 380 agreement between the City and Corpus Christi Liquefaction, LLC will provide economic incentives to develop and operate a liquid natural gas facility in the City's extra territorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits. The agreement provides for sharing certain tax revenues and provides for non - annexation of the project over a nineteen year term. BACKGROUND AND FINDINGS: Cheniere plans to construct a natural gas liquefaction facility in three phases, or "trains", which will be constructed on land located within City limits and within City's extraterritorial jurisdiction. The first train of the Facility will be constructed at a cost of at least One Billion Five Hundred Million Dollars ($1,500,000,000) and employ at least ninety (90) full-time employees; (ii) the second train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full- time employees; and (iii) the third train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees. The Cheniere project has been approved by the Federal Energy Regulatory Commission (FERC). The Chapter 380 agreement provides for sharing certain tax revenues and provides for non - annexation of the project over a nineteen year term. ALTERNATIVES: This agreement is essential to the company receiving the required financing to build the facility. OTHER CONSIDERATIONS: Cheniere has received tax abatement agreements with San Patricio County and the San Patricio County Drainage District. It is also working with Nueces County for a tax abatement agreement on the docks that will be constructed within Nueces County. Cheniere has also entered into a Chapter 313 agreement with Gregory -Portland ISD. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and incentivizing business to expand and thrive in Corpus Christi. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital x Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE RECOMMENDATION: Staff recommends approval of the Chapter 380 agreement between the City of Corpus Christi and Corpus Christi Liquefaction LLC. LIST OF SUPPORTING DOCUMENTS: Resolution Chapter 380 Agreement Page 1 of 2 Resolution Authorizing the City Manager or designee to execute a Chapter 380 Economic Development Incentive Agreement with Corpus Christi Liquefaction LLC ("Agreement") for certain economic development grants for development of a liquid natural gas facility within the City's extraterritorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits, for the benefit of the City. WHEREAS, the City has established a program in accordance with Article III, Section 52-a of the Texas Constitution and Chapter 380 of the Texas Local Government Code ("Chapter 380") under which the City has the authority to make loans or grants of public funds for the purposes of promoting local economic development and stimulating business and commercial activity within the City; and WHEREAS, City Council deems that the Agreement is in compliance with the City's Chapter 380 Economic Development Program Policy adopted by Resolution 028424 on November 17, 2009, and it is the best interest of the City and citizens to approve the Agreement with Corpus Christi Liquefaction LLC for certain economic development grants for development of a liquid natural gas facility within the City's extraterritorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits, for the benefit of the City. Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Council declares the recital paragraphs of this Resolution to be true. The City Manager or the City Manager's designee is authorized to execute the Agreement, which is on file at the City Secretary's office, with Corpus Christi Liquefaction LLC for certain economic development grants for development of a liquid natural gas facility within the City's extraterritorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits, for the benefit of the City. This resolution takes effect upon City Council approval on this the day of , 2015. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Resolution - Cheniere Nelda Martinez Mayor Corpus Christi, Texas of , 2015 The above resolution was passed by the following vote: Nelda Martinez Brian Rosas Carolyn Vaughn Colleen McIntyre Rudy Garza Lillian Riojas Lucy Rubio Mark Scott Chad Magill Resolution - Cheniere Page 2 of 2 CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN CITY OF CORPUS CHRISTI, TEXAS AND CORPUS CHRISTI LIQUEFACTION, LLC CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT This Chapter 380 Economic Development Incentive Agreement ("Agreement") is entered into as of , 2015, between THE CITY OF CORPUS CHRISTI, TEXAS ("City"), a home -rule city, and CORPUS CHRISTI LIQUEFACTION, LLC, a Delaware limited liability company ("Company"). RECITALS WHEREAS, Company desires to construct a natural gas liquefaction facility in three phases, or "trains" (as more particularly described in Exhibit A, the "Facility"), which will be constructed on land located within City limits and within City's extraterritorial jurisdiction as of January 1, 2015 (whose legal description is more particularly described in Exhibit B, the "Land") and WHEREAS, Company expects that (i) the first train of the Facility will be constructed at a cost of at least One Billion Five Hundred Million Dollars ($1,500,000,000) and employ at least ninety (90) full-time employees; (ii) the second train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees; and (iii) the third train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees; and WHEREAS, the portion of the Facility located within City limits shall be subject to full ad valorem, sales, and other City taxation; and WHEREAS, for purposes of this Agreement, its terms shall govern the Land and the Facility which will be located on the Land; and WHEREAS, City recognizes the positive economic impact that the Facility will bring to City and its extraterritorial jurisdiction through additional tax revenue from City's levy of full ad valorem, sales and other City taxes on the portion of the Facility located within City limits, development and diversification of the economy, reduction of unemployment and underemployment through the production of new jobs, and the attraction of new businesses; and WHEREAS, City has established a program in accordance with Article III, Section 52-a of the Texas Constitution and Chapter 380 of the Texas Local Government Code ("Chapter 380") under which City has the authority to make loans or grants of public funds for the purposes of promoting local economic development and stimulating business and commercial activity within City and its extraterritorial jurisdiction; and WHEREAS, City has concluded and hereby finds that this Agreement promotes economic development within City and its extraterritorial jurisdiction and, as such, meets the requirements under Chapter 380 and City's established economic development program, and, further, is in the best interests of City and Company; and WHEREAS, Section 212.172 of the Texas Local Government Code ("Section 212.172") authorizes City to make a written contract with an owner of land that is located in City's extraterritorial jurisdiction to provide for the continuation of the extraterritorial status of the land, and to agree to other terms regarding land usage, development, and regulation; and WHEREAS, in consideration of the positive economic impact that the Facility will bring to City and its extraterritorial jurisdiction, the City intends that the extraterritorial status of that portion of the Land located within the City's extraterritorial jurisdiction (the "ETJ Land") be continued during the term of this Agreement; and WHEREAS, in consideration of the benefits provided to Company pursuant to this Agreement, Company has agreed to comply with the terms and conditions of this Agreement, and to make a payment in lieu of taxes to the City in connection with the execution of this Agreement; NOW, THEREFORE, in consideration of the mutual benefits described in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Company agree as follows: ARTICLE I REPRESENTATIONS 1.1 Representations of City. City hereby represents to Company that as of the date hereof: (A) City is a duly created and existing municipal corporation and home -rule municipality of the State of Texas under the laws of the State of Texas and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B) City has the power, authority and legal right under the laws of the State of Texas to enter into and perform this Agreement and the execution, delivery and performance hereof (i) will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation, and (ii) does not constitute a default under, or result in the creation of any lien, charge, encumbrance or security interest upon any assets of City, under any agreement or instrument to which City is a party or by which City or its assets may be bound or affected. (C) This Agreement has been duly authorized, executed and delivered by City and constitutes a legal, valid and binding obligation of City, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by City does not require the consent or approval of any person that has not been obtained. 1.2 Representations of Company. Company hereby represents to City that as of the date hereof: (A) Company is duly authorized and existing and in good standing as a limited liability company under the laws of Texas and shall remain in good standing in Texas during the Term of this Agreement. (B) Company has the power, authority and legal right to enter into and perform its obligations set forth in this Agreement, and the execution, delivery and performance hereof, (i) have been duly authorized and will not, to the best of its knowledge, violate any judgment, order, law or regulation applicable to Company, and (ii) does not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of Company, under any agreement or instrument to which Company is a party or by which Company or its assets may be bound or affected. (C) This Agreement has been duly authorized, executed and delivered by Company and constitutes a legal, valid and binding obligation of Company, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by Company does not require the consent or approval of any person that has not been obtained. ARTICLE II DEFINITIONS The recitals to this Agreement are hereby incorporated for all purposes. The terms, "Agreement," "Chapter 380," "City," "Company," "ETJ Land," "Facility," "Land," and "Section 212.172" shall have the above meanings, and the following words or phrases shall have the following meanings: 2.1 "Act of Default" or "Default" means failure to timely, fully, and completely comply with one or more requirements, obligations, performance criteria, duties, terms, conditions or warranties of this Agreement. 2.2 "Base Payment" means the payment described in Article V of this Agreement. 2.3 "City Property Tax Revenues" means any maintenance and operations portion of City ad valorem taxes paid by Company on any portion of the Facility and Land located within City Iimits for any portion of the Term of this Agreement. 2.4 "Commencement of Construction" means (1) to commence the work of constructing the improvements or features with all approvals thereof and permits required by applicable governmental authorities obtained as necessary to begin construction; and (ii) onsite construction of the site development components (such as drainage, extensive grading or utilities) is underway and being pursued for the Facility. 2.5 "Completion of the Facility" means the date no later than December 31, 2021, subject to extension upon approval by City or for Force Majeure and delay due to obtaining required permits, that Company has made and evidenced the fulfillment of at least 85% of the Investment Requirement and at least 85% of the Job Requirement for Train 1. 2.6 "Contractor" means Bechtel Oil, Gas and Chemicals, Inc., as defined under Owner's EPC Contract. 2.7 "Effective Date" means the first date by which this Agreement has been signed by all of the parties hereto, on which date the terms and provisions of this Agreement shall become effective. 2.8 "Force Majeure" means any act that (a) materially and adversely affects the affected party's ability to perform the relevant obligations under this Agreement or delays such affected party's ability to do so, (b) is beyond the reasonable control of the affected party, (c) is not due to the affected party's negligence or willful misconduct and (d) could not be avoided by the party who suffers it by the exercise of commercially reasonable efforts (provided that such commercially reasonable efforts shall not require such party to expend a material amount of money to avoid the act giving rise to a Force Majeure). Subject to the satisfaction of the conditions set forth in (a) through (d) above, Force Majeure shall include but not be limited to: (i) natural phenomena, such as storms, hurricanes, floods, lightning and earthquakes; (ii) wars, civil disturbances, revolts, insurrections, terrorism, sabotage and threats of sabotage or terrorism; (iii) transportation disruption, whether by ocean, rail, land or air; (iv) strikes or other labor disputes that are not due to the breach of any labor agreement by the affected party; (v) fires; (vi) the unavailability of necessary and essential equipment and supplies; (vii) a breach by City of this Agreement or any other actions, omissions of or delays by a governmental authority (including the actions of City in its capacity as a governmental authority) that were not voluntarily induced or promoted by the affected party, or brought about by the breach or noncompliance by the affected party of its obligations under this Agreement or any applicable law; and (viii) failure of the other party to perform any of its obligations under this Agreement within the time or by the date required pursuant to the terms of this Agreement for the performance thereof; provided, however, that under no circumstances shall Force Majeure include any of the following events: (A) economic hardship; (B) changes in market condition; or (C) weather conditions which could be anticipated by experienced contractors operating at the relevant location and exercising commercially reasonable business judgment. 2.9 "Full Time Jobs" means jobs providing a regular work schedule of at least 35 hours per week, which term shall include full-time positions of any third party operator or contractor or of any subsidiary or affiliate located at the Facility. 2.10 "Industrial District Agreement" means an agreement made and entered into under the authority of Section 42.044 of the Texas Local Government Code, or successor provisions thereto. 2.11 "Investment Requirement" means an investment of capital in Train 1 of the Facility by Company or any subsidiary or affiliate of not less than One Billion Five Hundred Million Dollars ($1,500,000,000). 2.12 "Job Requirement" means the creation of not less than 90 Full Time Jobs for Train 1 of the Facility. Any third party operator or contractor or any subsidiary or affiliate fulfilling this Job Requirement shall be subject to the requirements of Sections 4.7 and 6.8. Company must provide documents from any third party operator or contractor or any subsidiary or affiliate fulfilling any part of this Job Requirement evidencing all jobs and employment created as a result of the Completion of the Facility, pursuant to Article VII herein. 2.13 "Reimbursement Amount" or "Reimbursement" shall mean, for each year during the Term of this Agreement beginning with the year in which Commencement of Construction occurs, One Hundred Percent (1000) of City Property Tax Revenues, which amount the City agrees to reimburse to the Company pursuant to Section 5.2 of this Agreement if the Company satisfies the conditions of this Agreement. 2.14 "Resident of City" or "City Resident" means a person that resides in the Corpus Christi Metropolitan Statistical Area (San Patricio County, Nueces County, and Aransas County) ("MSA"). 2,15 "Term" means the period defined in Article III of this Agreement. 2.16 "Train 1" of the Facility means the first phase, or "train," of the Facility, including Facility infrastructure, as more particularly described in Exhibit C. ARTICLE III TERM The term of this Agreement (the "Term") will begin on the Effective Date, as defined in Section 2.4 herein, and shall continue until the Agreement is terminated pursuant to Section 4.3; provided, however, that this Agreement shall not remain in effect past December 31, 2033. ARTICLE IV COMPANY REQUIREMENTS, ANNEXATION, INDUSTRIAL DISTRICT, AND LAND USAGE TERMS 4.1 Requirement to Complete Facility. Company shall provide reasonable evidence that they have satisfied the Investment Requirement and the Job Requirement required for Completion of the Facility, which evidence shall include, but not be limited to, state and federal employment reports and audited financial statements. Should Commencement of Construction occur but should Company fail to achieve Completion of the Facility by December 31, 2021, City shall have the option to terminate the Agreement. 4.2 Extraterritorial Status of ETJ Land. Pursuant to its authority under Section 212.172, City agrees that, beginning January 1, 2015, and subject to Section 4.3 and Company's compliance with the applicable terms of this Agreement, the ETJ Land shall remain in City's extraterritorial jurisdiction and shall not be annexed during the remaining Term of this Agreement. 4.3 Annexation and Industrial District Agreement Options. (A) If, beginning January 1, 2015, and through the remaining Term of this Agreement, City proposes to annex any part or all of the ETJ Land, City shall notify Company in writing no later than thirty (30) days before such proposal is first placed on the Corpus Christi City Council's agenda, whether as a closed session or open session item. Additionally, as applicable under the terms of that chapter, City shall give Company all notice required under Chapter 43 of the Texas Local Government Code. No later than sixty (60) days after the earliest date such notification is received by Company, Company shall have the option to notify City in writing that Company agrees to continue abiding with the terms of the Agreement. Upon City's receipt of such written notice from Company, the Agreement shall continue and be in full force and effect, and the ETJ Land shall not be annexed. Should Company not provide such written notice to City within the above -required period, the Agreement shall terminate and City shall be free to annex the ETJ Land. (B) Throughout the Term of this Agreement, Company may give City written notification of Company's request to have that portion of the Facility located in City's extraterritorial jurisdiction placed in an industrial district and be bound by the terms of an Industrial District Agreement with the City, approval of which request will not be withheld by the City, effective on the earlier of (i) the termination of this Agreement, or (ii) January 1, 2034. 4.4 Facility General Requirements. City shall not be responsible for any costs and expenses incurred in connection with the construction of the Facility. Company agrees to assist City, if so requested by City, in the preparation of any documentation necessary for the preparation and approval of any of the documents or actions required by City to perform any of the obligations under this Agreement. Upon completion of the Facility and during the Term of this Agreement, the Company shall maintain the Land and the Facility in a commercially reasonable manner, comparable to the maintenance of similar facilities, and shall timely pay all City taxes assessed against that portion of the Facility that is within City limits. 4.5 Annexation Corridor. Should Company sell or lease a portion of the ETJ Land, and should such sold or leased ETJ Land no longer be covered by this Agreement pursuant to the assignment provisions of Section 10.4 (the "Relinquished Land"), Company shall, after City provides Company with sixty (60) days prior written notice of intent to initiate annexation proceedings, permit City to annex a suitable strip of ETJ Land from City's boundary to such Relinquished Land (an "Annexation Corridor") to permit annexation of the Relinquished Land. The Annexation Corridor shall be the minimum amount legally necessary to annex the Relinquished Land. The location of the Annexation Corridor shall be subject to the approval of Company, which approval shall not be unreasonably withheld. Company and the Annexation Corridor shall have no right to any City services as a result of such annexation; nor shall City extend, by ordinance, any rules or regulation to the Annexation Corridor, including, but not limited to, those (a) governing plats and subdivisions and land, (b) prescribing any building, electrical, plumbing, or inspection codes, or (c) attempting to exercise in any manner whatsoever control over the conduct of Company's business thereon. The Annexation Corridor shall remain subject to this Agreement and shall not be subject to City taxes. In the event that the need for an Annexation Corridor no longer exists, City agrees to immediately cease any annexation proceedings related to the Annexation Corridor, or within sixty (60) days, take the steps necessary to complete disannexation proceedings required to remove the Annexation Corridor from City limits. 4.6 Commencement of Construction. Company is required to inform City in writing of Commencement of Construction. If Commencement of Construction has not occurred by January 1, 2018, City has the option to terminate the Agreement. 4.7 Use of Local Resources. (A) Company shall make reasonable efforts to fill construction jobs and Full Time Jobs with Residents of the Corpus Christi MSA, which shall include the following: (i) Company shall publish job fair schedules and, to the extent practicable, job postings in the San Patricio County and Corpus Christi area newspapers; and (ii) Company shall establish an official website which will be the official means of informing City Residents of employment opportunities. (B) To the extent practicable, Company shall also give priority to the use of suppliers from the Corpus Christi MSA for construction materials and supplies. Company shall, to the extent practicable, publish its requirements for goods and services of significant value on its official web site. Company shall not, however, be required to use goods and services provided by resident suppliers from the Corpus Christi MSA that are not (i) of equivalent quality, functionality, and compatibility to those provided by nonresident suppliers or (ii) made available on terms, conditions and price comparable to those offered by nonresident suppliers. (C) Company shall certify that it has offered a health insurance program for its employees having Full Time Jobs. 4.8 Prohibited Transfers. Company agrees that, without express written approval of the City, the Company may not deed any part of the Land or Facility to a tax exempt entity or public entity. 4.9 City Services. During the Term of this Agreement, City shall have no obligation to extend to the ETJ Land any utility, fire protection, or other City services, except for services that are being provided to and paid for by Company an the date hereof, or as City and Company shall otherwise agree in writing. 4.10 Compliance with City Rules and Regulations. City and Company agree that during the Term of this Agreement, with respect to the ETJ Land, City shall not require compliance with its rules or regulations: (1) governing zoning and platting of the ETJ Land for the purpose of Locating the Facility and portions thereof on the ETJ Land; provided, however, Company further agrees that it will in no way divide the ETJ Land without complying with State law and City ordinances governing subdivision of land; (2) prescribing any building, electrical, plumbing or inspection code or codes; or (3) otherwise governing the operation of Company's business on the ETJ Land, except as to those regulations relating to the delivery of utility services and industrial waste disposal through City -owned facilities. ARTICLE V IN LIEU OF TAXES PAYMENT TERMS AND PROVISIONS; TAXABLE PROPERTY REIMBURSEMENT 5.1 Payment In Lieu of Taxes. (A) For purposes of this section, the base payments ("Base Payments") with respect to any tax year are (a) 100 percent of the ad valorem taxes for the ETJ Land based upon its market value (as determined by the relevant appraisal district for such tax year) which would otherwise be payable to City by Company if the ETJ Land was situated within the city limits of City plus (b) 62.5 percent of the ad valorem taxes for that portion of the Facility Located in City' s extraterritorial jurisdiction (excluding personal property and inventory) based upon its market value (as determined by the relevant appraisal district for such tax year) which would otherwise be payable to City by Company if such portion of the Facility was located within the city limits of City. (B) For tax year 2031, Company shall pay City 33 percent of the Base Payments with respect to such tax year. For tax year 2032, Company shall pay City 66 percent of the Base Payments with respect to such tax year. For tax year 2033, Company shall pay City 100 percent of the Base Payments with respect to such tax year. Each such payment shall be due on January 31 of the year following the tax year with respect to which such payment is made. Company shall not be obligated to pay City any portion of the Base Payments with respect to any other tax year during the Term of this Agreement. 5.2 Taxable Property Reimbursement. Pursuant to its authority under Chapter 380, the City hereby agrees to pay the Reimbursement Amount to the Company as an unconditional obligation of the City, with respect to each calendar year during the Term of this Agreement beginning with the year in which Commencement of Construction occurs. The Company shall submit a request for the Reimbursement Amount to the City in writing by providing the City evidence of any City Property Tax Revenues paid no later than March 1st of each year. Within Sixty (60) days of receiving such written request from the Company, subject to the satisfaction of the Company's Commitments under Article IV herein and the Company's timely and full compliance with all applicable terms and conditions contained in this Agreement, City shall pay the Reimbursement Amount to the Company, subject to the limitations set forth herein. ARTICLE VI COVENANTS, WARRANTIES, OBLIGATIONS AND DUTIES OF THE COMPANY Company, as of the Effective Date, makes the following covenants and warranties to City and agrees to timely and fully perform the following obligations and duties. 6.1 Litigation. No litigation or governmental proceeding is pending or, to the knowledge of Company, threatened against or affecting Company or the Facility that may result, in the sole judgment of Company, in any material adverse change in Company's business, properties or operation. 6.2 Untrue Statements. To the best of Company's knowledge, no certificate or statement delivered by Company to City in connection herewith, or in connection with any transaction contemplated hereby, contains any untrue statement or fails to state any fact necessary to keep the statements contained therein from being misleading except those which have been replaced by subsequent certificates or statements heretofore given to City in substitution. 6.3 Bankruptcy. Company is not the subject of any bankruptcy proceedings, and Company has not been informed that it is the subject of any potential involuntary bankruptcy proceedings. 6.4 Licenses and Authority. To the best of Company's knowledge, it has acquired or is in the process of acquiring and maintaining all necessary rights, licenses, permits and authority to carry on its business in City, City's extraterritorial jurisdiction, and San Patricia County, Texas, and will continue to use commercially reasonable efforts to maintain all necessary rights, licenses, permits and authority. 6.5 Ownership Changes. Company shall notify City in writing of any changes in ownership of any part of the Facility or of Company within thirty (30) days after Company's knowledge thereof. 6.6 Succession of Ownership. No change of ownership or management of any part of the Facility nor a change of ownership or management of Company shall abate, waive, terminate or in any way relieve Company of its respective obligations herein. 6.7 Non -Discrimination. Company agrees that, as to all of the programs and activities arising out of this Agreement, it will not discriminate against any person on the basis of race, color, national or ethnic origin, sex, age, religion, or by reason of being disabled, or any other characteristic protected under applicable federal or state law. 6.8 Employment of Undocumented Workers. Company does not and agrees that it will not knowingly employ an undocumented worker. Company's conviction of a violation under 8 U.S.C. 1.324a shall constitute an Act of Default hereunder. ARTICLE VII REPORTING AND AUDITING 7,1 Audit by the City. City may audit Company's records relative to compliance with the Investment Requirement and the Jobs Requirement to determine Company's compliance with the terms of this Agreement. This audit will be done by City or its designee on an annual basis. Company shall provide City an annual report, no later than March et of each year, stating the corresponding amount of annual capital investment (until the Investment Requirement has been fulfilled) and number of Full Time Jobs created and retained. 7.2 Access to Records/Right to Audit. Company, during normal business hours and after being provided three working days prior written notice, shall allow City or its designee reasonable access to its records and books and all other relevant records relative to compliance with the Investment Requirement and the Jobs Requirement, but the confidentiality of such records and information shall be maintained by City unless disclosure of such records and information shall be required by a court order, a lawfully issued subpoena, or the Office of the Texas Attorney General. ARTICLE VIII DEFAULT 8.1 Company Default. Subject to Force Majeure and any consent given under Section 8.3 or variance granted under Section 10.14, failure by Company to comply with any requirements of this Agreement shall constitute an Act of Default. if such Act of Default is not cured and corrected within ninety (90) days after written notice to do so or by express waiver by the City, the City has the option to terminate this Agreement. Company shall be liable to City for any actual proven damages sustained by City as a result of said Act of Default by Company under this Agreement, subject to the provisions of Section 10.15. 8.2 City Default. Save and except as provided in Section 4.3, if City breaches this Agreement by annexing any of the ETJ Land during the term of this Agreement, wrongfully terminating this Agreement, or failing to pay the Reimbursement Amount, Company shall be entitled to enjoin City from enforcing any annexation ordinance adopted in violation of this Agreement, terminating this Agreement, or taking any other action in violation of this Agreement. 8.3 Consent and Excuse. In the event of unforeseeable third party delays which are not Force Majeure and upon a reasonable showing by Company that it has immediately and in good faith commenced and is diligently and continuously pursuing the correction, removal or abatement of such delays by using commercially reasonable efforts, City may consent to and excuse any such delays, which consent and excuse shall not be unreasonably withheld. 8.4 City Delay. Any delay for any amount of time by City in providing notice of Default to the Company hereunder shall in no event be deemed or constitute a waiver of such Default by City of any of its rights and remedies available in law or in equity. 8.5 City Waiver. Any waiver granted by City to Company of an Act of Default shall not be deemed or constitute a waiver of any other existing or future act of default by Company or of a subsequent Act of Default of the same act or event by Company. ARTICLE IX CITY'S LIABILITY LIMITATIONS Should City fail to timely, fully and completely comply with any one or more of the requirements, obligations, duties, terms, conditions or warranties of this Agreement, such failure shall be an Act of Default by City and City shall have ninety (90) days to cure and remove the Default after receipt of written notice to do so from Company. ARTICLE X MISCELLANEOUS PROVISIONS 10.1 Permitting. Subject to the Company complying with all applicable laws, City agrees to cooperate with Company to expeditiously process permits required for Completion of the Facility. 10.2 Attorneys' Fees. If any legal action or proceeding is commenced between City and Company based on this Agreement, the prevailing party in the legal action will be entitled to recover its reasonable attorneys' fees and expenses incurred by reason of such action, to the extent allowed by law. 10.3 Binding Effect. This Agreement will be binding on and inure to the benefit of the parties and their respective successors and assigns. 10.4 Assignment. Except as provided below, Company may not assign all or part of its rights and obligations under this Agreement to a third party without prior written approval of City, which approval will not be unreasonably withheld or delayed. City agrees, however, that the Company may assign in whole or in part its rights and obligations under this Agreement or with respect to all or any part of the Land or the Facility to any affiliate, subsidiary, related company, partnership or joint venture, as long as the assignee controls, is controlled by, or is under common control with the Company; or to a third party lender advancing funds for the acquisition of all or any part of the Land or the Facility or for the construction or operation of the Facility. City expressly consents to any assignment described in the preceding sentence and agrees that no further consent of City to such an assignment will be required. The Company agrees to provide City with written notice of any such assignment. 10.5 Termination, If Company elects not to proceed with the Facility as contemplated by this Agreement, Company will notify City in writing, and this Agreement and the obligations of both parties will be deemed terminated and of no further force or effect as of the date of such notice. Additionally, at any time during the Term, Company may elect to terminate this Agreement. Following the giving of said notice, this Agreement shall terminate and be of no further force or effect, and all parties shall be fully released of any further obligations under this Agreement relating to said designated part or parts of the Land. 10.6 Notice. Any notice or other communication ("Notice") given under this Agreement must be in writing and may be given: (i) by depositing the Notice in the United States Mail, postage paid, certified, and addressed to the party to be notified with return receipt requested; (ii) by personal delivery of the Notice to the party, or an agent of the party; or (iii) by confirmed facsimile, provided that a copy of the Notice is also given in one of the manners specified in (1) or (ii). Notice deposited in the mail in the manner specified will be effective two (2) days after deposit. Notice given in any other manner will be effective only if and when received by the party to be notified. For the purposes of Notice, the addresses of the parties will, until changed as provided below, be as follows: Company: Cheniere Energy, Inc. Attention: Mr. Daniel Belhurneur 700 Milani Street, Suite 800 Houston, Texas 77002 City: City of Corpus Christi Attn.: City Manager P.Q. Box 9277 Corpus Christi, Texas 78469-9277 Ph: (361) 826-3220 Facsimile: (361) 826-3839 with a copy to: City Attorney P.O. Box 9277 Corpus Christi, Texas 78469-9277 Ph. (361) 826-3360 Facsimile: (361) 826-3239 Any party may designate a different address at any time by giving Notice to the other party. 10.7 Interpretation. Each of the parties has been represented by counsel of their choosing in the negotiation and preparation of this Agreement. In the event of any dispute regarding the interpretation of this Agreement, this Agreement will be interpreted fairly and reasonably and neither more strongly for nor against any party based on draftsmanship. 10.8 Relationship of the Parties. This Agreement will not be construed as establishing a partnership or joint venture, joint enterprise, express or implied agency, or employer / employee relationship between the parties. Neither City nor its past, present or future officers, elected officials, employees or agents assume any responsibility or liability to any third party in connection with the development of the Facility or the design, construction or operation of any portion of the Facility. 10.9 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, it is the intention of the parties that the remainder of this Agreement not be affected, and it is also the intention of the parties that, in lieu of each provision that is found to be illegal, invalid or unenforceable, a provision be added to this Agreement which is legal, valid or enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 10.10 Paragraph Headings, Etc. The paragraph headings contained in this Agreement are for convenience only and will in no way enlarge or limit the scope or meaning of the paragraphs. 10.11 No Third Party Beneficiaries. This Agreement is not intended to confer any rights, privileges or causes of action upon any third party. 10.12 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. A facsimile signature will be deemed to be an original signature for all purposes. 10.13 Exhibits. The following exhibits are attached to and incorporated into this Agreement for all purposes, as if they were set forth herein in their entirety: Exhibit A: Facility Description Exhibit B: Land Description Exhibit C: Train 1 Description 10.14 Variances. City, in its sole discretion, may grant and approve variances to Company from the performance criteria and development standards described herein upon application in writing therefore by the Company. 10.15 Damages not Included. Damages awarded in an adjudication brought against City or Company arising under the Agreement, including any amendments thereto, may not include: (i) consequential damages; al) exemplary damages; or (iii) damages for unabsorbed home office overhead. ARTICLE Xi GENERAL TERMS 11.1 Entire Agreement. This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written, previous and contemporary, agreements between the parties relating to matters in this Agreement; and, except as otherwise provided herein, this Agreement cannot be modified or amended without a written agreement of the parties. 11.2 Law. This Agreement is subject to all legal requirements of Texas and all other applicable County, State and Federal laws, and the Company agrees that it will promptly comply with all such applicable laws, regulations, orders and rules of the State, County and other applicable governmental agencies. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas without regard, however, to the conflicts of laws provisions of Texas law. 11.3 Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 11.4 Confidential. City, its officers and employees, and its agents or contractors retained to perform economic development services for City, shall treat as confidential any information delivered by the Company or its respective representatives to City and its representatives and shall not release such information to the public unless required by law or court order. City shall immediately notify the Company of requests or court orders to release such information. [Signature page follows] EXECUTED to be effective as of this day of , 2015. CORPUS CHRISTI LIQUEFACTION, LLC By: Name: Title: CITY OF CORPUS CHRISTI, TEXAS ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta, City Secretary Ronald L. Olson City Manager f tl n n 1 r.Y EXHIBIT A Description of the Facility The Company is developing a LNG liquefaction facility and export terminal (the "Facility") on the La Quinta Channel on the north shore of Corpus Christi Bay in San Patricia County and Nueces County, Texas. The Facility will provide a significant source of employment, economic activity and tax revenue. Direct spending by the Company during the construction phase of the Facility is expected to average between $37.9 million and $51.2 million per month over five years. Total spending (including direct, indirect and induced spending) resulting from construction is forecast to average between $123.2 million and $166.4 million per month over this same period. Most of the construction workforce will come from the communities in the Corpus Christi region and South Texas, directly stimulating the regional economy, local employment, and municipal revenue. Following construction, the operation of the Facility will provide a stable source of employment, economic stimulus, and tax revenue over the long term in the Corpus Christi region. The projected annual impacts to the Corpus Christi region resulting from operations of the Facility (including direct, indirect and induced impacts) include approximately 2,100 permanent jobs, $135 million in personal income, and $240 million in gross product. The construction and long-term operation of the Facility is projected to generate significant cumulative benefits for the State of Texas, including approximately $12.5 to $15.2 billion in personal income, $19.6 to $23.5 billion in gross product, and $970.6 million to $1.2 billion in tax benefits. A total of between 199,266 and 243,868 person-years of employment are forecast to be created in Texas as a result of the construction and operation of the Facility.1 The Facility will include three LNG (natural gas liquefaction process) trains, insulated LNG storage tanks, and berthing for LNG tankers. Each LNG train will include a variety of specialized equipment used to purify pipeline quality natural gas and liquefy it into LNG. The Company is in the process of engineering the Facility, securing commercial agreements, and obtaining financing and governmental permits, each of which are conditions precedent to the Company commencing construction on the Facility. A map of the Facility is attached to this Exhibit A. The Perryman Group, The Anticipated Impact ofCheniere's Proposed Corpus Christi Liquefaction Facility on Business Activity in Corpus Christi, Texas, and the US (May 2012), at 21 (hereinafter, Perryman Report). The Perryman Report is available for review upon request. All dollar figures reported represent constant 2012 dollars. References to regional impacts measured by The Perryman Group refer to the Corpus Christi Metropolitan Statistical Area (MSA), which includes Nueces, San Patricia and Aransas counties in South Texas. EXHIBIT B Description of the Land The metes and bounds description and a map of the property upon which the Company will build the Facility are attached to this Exhibit B. October 9, 2012 12CH0203 EXHIBIT A METES AND BOUNDS DESCRITION OF A 337.4 ACRE TRACT Being 337. 4 acres of land, more or less, out of a 1610.0 acre "Tract 1, Parcel 1A", 328.9 acre "Tract 1, Parcel 2A", 31.82 acre "Tract 1, Parcel 5", and 58.07 acre 'Tract 1, Parcel 6" as recorded in Document No. 490819, Real Property Records of San Patricia County, Texas, and Document No. 2001000017, Official Public Records of Nueces County, Texas, and also being out of the T. T. Williamson Surveys, Abstract Numbers 288, 289, and 290, and out of State Tracts 1 and 2, and this 337.4 acre tract being all of the 212.2 acre tract recorded in Document No. 2004020956, Official Public Records of Nueces County, Texas, and all the 125.2 acre tract referred to as "Reynolds/Alcoa Retained Tract #3" recorded in Document No. 2001000017, Official Public Records of Nueces County, Texas, and this 337.2 acre tract being more particularly described by metes and bonds as follows: Commencing at a found concrete monument in the south right-of-way line of Texas State Highway No. 35 for the most northerly northeast corner of the aforementioned 328.9 acre tract, the same being the northwest corner of a 832.0 acre "Reynolds/Alcoa Retained Tract 1" recorded in Document No. 2001000017, Official Public Records of Nueces County, Texas; Thence leaving said south right-of-way line and with the west line of said 832.0 acre tract, S 17 41-05 E, at 8736.90 feet pass a found 5/8 -inch iron rod for the southwest corner of said 832.0 acre tract, in all 8936.90 feet to a found 5/8 -inch iron rod; Thence S 72-17-20 W, 59.39 feet, to a found 5/8 -inch iron rod for the POINT OF BEGINNING and the northwest corner of this tract and said 212.2 acre tract, said corner having a NAD'83 State Plane Grid Coordinate of N 17214778.87', E 1379635.54', Texas South Zone in U.S. feet; Thence N 72-17-20 E with the north boundary of this tract and said 212.2 acre tract, at 2644.75 feet pass the common east line of the aforementioned 328.9 acre tract and a west line of the aforementioned 1610.0 acre tract, in all 2818.29 feet to a found 5/8 -inch iron rod for the northmost northeast corner of this tract and said 212.2 acre tract; Thence with the east boundaries of this tract and said 212.2 acre tract as follows: S 75-57-21 E, 308.21 feet; 5 17-42-40 E, 838.29 feet; 572-17-20 W, 246.92 feet; 5 17-42-40 E, 640.06 feet, to a found 5/8 -inch iron rod for a corner of this tract; Thence S 67-58-34 W, at 188.26 feet pass the aforementioned common line between the 328.9 acre tract and the 1610.0 acre tract, in all 314.67 feet to a found 5/8 -inch iron rod for an interior corner of this tract and the northmost northeast corner of said 125.2 acre tract; Thence with the common east boundary of this tract and said 125.2 acre tract as follows: 5 73-59-30 E, 102.15 feet, to a found 5/8 -inch iron rod; 5 17-32-43 E, at 2960.50 feet pass a found 5/8 -inch iron rod being the southeast corner of said 125.2 acre tract, at 3129.328 feet pass the common south line of the aforementioned 328.9 acre tract and the north line of the aforementioned 58.07 acre tract, at 3192.41 feet pass a found 5/8 -inch reference iron rod, at 3242.47 feet pass the common east line of said 58.07 acre tract and the west line of the aforementioned 31.82 acre tract, in all 3257.37 feet to a corner; Thence 5 01-10-31 E, 767.00 feet, to the southeast corner of this tract and said 212.20 acre tract, said corner being on the south line of said 31.82 acre tract and the Port of Corpus Christi Authority North Bulkhead Line; Thence N 77-30-59 W with said bulkhead line and the south boundary of this tract and said 212.2 acre tract, at 190.69 feet pass the southwest corner of said 31.82 acre tract and the southeast corner of the aforementioned 58.07 acre tract, in all 3569.03 feet to the southwest corner of this tract and said 212.20 acre tract; Thence leaving said bulkhead line N 07-00-28 W, 340.43 feet, to a corner being on the common north line of said 58.07 acre tract and the south line of the aforementioned 328.9 acre tract; Thence N 03-34-16 E, at 149.58 feet pass a found 5/8 -inch reference iron rod, in all 1080.30 feet, to a found 5/8 -inch iron rod for a corner; Thence N 04-42-55 W, 1132.92 feet, to a found 5/8 -inch iron rod for a corner; Thence N 17-47-50 W, 1473.53 feet, to the point of beginning and containing 337.4 acres of land, more or less. Notes: 1. Bearings are State Plane Grid. 2. Drawing Exhibit B accompanies this metes and bounds description. P.O.0 _ - L•L' p Gk. 7 B :61 at ? .0 •••‘• • 1. .54. L T.‘14 11"1195Y2' E•••''' Train 2 Train 1 & Infrastructure LINE TABLE UNE LENGTH ]1RECTICN LI 2818,29' N72' 17'20-E L2 308.21 57552'27*E L3 836.29' SI T42.40"E 14 246.92' S72' 17'20W L5 640.06' S17'4240E , 16 31'.67' 567'58'34"W L7 102.15' 57359'30"E L8 3257.31' S't 7' 32'43-E L9 767.00' 501'10'31'E L10 3569.03' N77'30'591Y L11 340.43' NO700.2CW _.1 L12 1080.30' NO3-34'16nE L13 1132.92' N04'42.55"W L14 1473.53' N17'47.50 -W 800 L2 Train 3 0 k 1 16C .0 P•RCH L13 CRE TRACT L121 Shoreline 1 Lio 60/dIe 0 800 1600 SCALE: 1" = 800' LY A, EuLeileAD 0, 7 EXHIBIT B Orwap•rm.L.Li Off.. 041) 24I -fl GOVIND DEVELOPMENT, LLC. nmt, MIN ABM 0.51:1104 CORPUS CHRISTI LIQEUFACTION, LLC 337.4 ACRE TRACT SAN PATCH= COUNTY WOW at Rh APP. GR :ATE; QC? cook act: KAI Nartl, CLEW/ '''ML 12011202 Dftmehs: Po 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: January 27, 2015 Agenda Item: Resolution authorizing the City Manager or designee to execute a Chapter 380 Economic Development Incentive Agreement with Corpus Christi Liquefaction LLC ("Agreement") for certain economic development grants for development of a liquid natural gas facility within the City's extraterritorial jurisdiction and for construction of docks potentially within the Corpus Christi city limits, for the benefit of the City. Amount Required: NA 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 January 20, 2015 Action Item for the City Council Meeting of January 27, 2015 DATE: TO: January 14, 2015 Ronald L. Olson, City Manager FROM: Wes Pierson, Assistant City Manager (361) 826- 3082 wesp@cctexas .com Agreement for temporary tax abatement for Corpus Christi Liquefaction, LLC CAPTION: Approving a resolution authorizing the execution of an agreement with Corpus Christi Liquefaction, LLC providing for temporary property tax abatement PURPOSE: Granting a tax abatement to Corpus Christi Liquefaction, LLC (Cheniere) for a term of up to five years. BACKGROUND AND FINDINGS: Cheniere plans to construct a natural gas liquefaction facility in three phases, or "trains", which will be constructed on land located within City limits and within City's extraterritorial jurisdiction. The first train of the Facility will be constructed at a cost of at least One Billion Five Hundred Million Dollars ($1,500,000,000) and employ at least ninety (90) full-time employees; (ii) the second train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full- time employees; and (iii) the third train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees. This resolution will allow projects on that site to be eligible for certain economic development incentives from taxing entities. The Cheniere project will be on the La Quinta site but also extend from the water's edge into Corpus Christi Bay. The docks will extend into the city limits of Corpus Christi. The tax abatement agreement is for one dollar. This allows other taxing entities to grant Cheniere tax abatements if they desire. ALTERNATIVES: The City needs to establish the reinvestment zone. Without the reinvestment zone other taxing entities will not be allowed to grant tax abatements. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: This is in compliance with the City's economic development policies to incent growth within the city. EMERGENCY / NON -EMERGENCY: NON -EMERGENCY FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital x Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE RECOMMENDATION: Staff recommends approval to grant a temporary tax abatement to Corpus Christi Liquefaction, LLC in accordance with the City's Tax Abatement Guidelines and Criteria. LIST OF SUPPORTING DOCUMENTS: Resolution — Cheniere Tax Abatement Agreement Page 1 of 2 Resolution Authorizing the execution of an agreement with Corpus Christi Liquefaction, LLC providing for temporary property tax abatement Whereas, the Texas Property Redevelopment and Tax Abatement Act (the "Act"), Texas Tax Code, Chapter 312, as amended, authorizes the City of 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 Corpus Christi Liquefaction, LLC for the construction of a facility 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 Corpus Christi Liquefaction, LLC providing for temporary property tax abatement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City. The City Council further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the long term benefit of the City. SECTION 2. The Tax Abatement Agreement with Corpus Christi Liquefaction, LLC, 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 , 2015. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary RESOLUTION - Tax Abatement Cheniere Nelda Martinez Mayor Corpus Christi, Texas of , 2015 The above resolution was passed by the following vote: Nelda Martinez Brian Rosas Carolyn Vaughn Colleen McIntyre Rudy Garza Lillian Riojas Lucy Rubio Mark Scott Chad Magill RESOLUTION - Tax Abatement Cheniere Page 2 of 2 182428 METES AND BOUNDS DESCRIPTION OF A 52.25 ACRE TRACT Being 52.25 acres of land, out of a 212.20 acre tract of land as described in Document No. 490819, Official Public Records of San Patricia County, Texas, aise being out of a 328.9 acre tract, referred to as "Tract 1, Parcel2A", described In Document No. 2001000017, Official Public Records of Nueces County, Texas, and a 832.0 acre tract referred to as "Reynolds/Alcoa Retained Tract 1" in Document No. 2001000017, Official Public Records of Nueces County, Texas, and being more particularly described by metes and bounds as follows: Commencing at a found 5/8 inch iron rod, being the southeast corner of a 1252 acre tract.referred to as "Reynolds/Alcoa Retained Tract 3" fn DocunientNo.20010b0017, Official Public.Records.of Nueces County, Texas, said comer having a State Plane Grid Coordinate Of N17,21.1,109.14`, E;.1,383,532.78', NAD' 83, Texas South Zone, and said comer also being an inside comer of said 212;20 acre tract as shown in MEI Govind drawing no. 0309-501-004 and drawing no.0309-501-005; Thence along the northeasterly boundary of sald 21220 acre tract, S 17-32.44 E;250;80 feet .to the Point of Beginning and northeast comer of this herein described tract, said; comer having a State Plane Grid Coordinate of N 17,210,870.02', E, 1,383,608.38', NAD' 83, Texas South Zone,,and being on the Mean Higher High Water Une of Corpus Christi Bay; Thence 517-32-44 E, 46.08 feet, to an interior corner of this herein described tract, same behig an interior corner of said 212.20 acre tract Thence 5 01-10-32 E, 767.00 feet, to a point on the on the south line.nf a-31.82 acre tract, referred to as "Tract 1, Parcel 5" as recorded in Document No. 200100007.7, Official public Records of Nueces County, Texas, said point being the Port of Corpus Christi Authority North Bulkhead Line, also being the southeast corner of said 21220 acre tract, same beingthe southeast corner of this herein described tract; Thence along the south boundary of this herein described tract, the south boundary of said 212.20 acre tract, the North Bulkhead Une, N 77-30-59 W, 8569.00 feet, to the southwest corner of this herein described tract, same being the -southwest corner of sald 212.20 acre tract" Thence leaving said North Bulkhead Line, N07-00-29 W, 244.22 feet, to an interior corner of this herein described tract, said corner being on the west boundary line of said 21220 acre tract, and also being on said Mean Higher High Water Une (MHHW); Thence along said Mean Higher High Water line as follows: N 87-07-14 E, 13.56 feet; S 32-02-58 E, 21.05 feet; N 68-07-0$ E, 19.87 feet; S 61-24-17 E, 14.94feet; N 45-48-36 E,13.55 feet; N 25-00-56 W, 72.49 feet Thence 5 85-4321 W, 4223 feet, to an interior corner of this herein described tract, said comer being on the westboundary line of said 212.20 acre tract Thence along the west boundary of said 212.20 acre tract, N 07-00-29 W, 30.33 feet, to the northwest corner of this herein described tract, and being on saki Mean Higher High Water Line; Thence with said Mean Nigher High Waterline (MHHW) as follows: N 84-40-25 E, 16.36 feet; S 84-44-31 E, 50.13 feet; 503-16-16 E; 36.14 feet; S 72-16-10 E, 17.07 feet; N 53-23-13 E,27.28 feet; S 87-50-01E, 30.47 feet; N 82-2156 E,49.49 feet; N 87-19-40 E, 40.23 fee S 62-13-54 E, 24.71 feet; 331-48-7.9 E, 30.33 feet 662 182428 N 37-21-50 W, 9.14 feet; N 48-34-53 E, 60.83 feet; N 88-0421 E, 61.52 feet; S 62-33-10 E, 49.74 feet; S 85-11-41 E, 51.68 feet N 79-36-23 E, 36.81 feet; N 65-12-45 E, 35.50 feet; 5 79-22-43 E, 56.99 fleet; 556-38-50 E, 58.76 feet 5 48-44-43 E, 111.54 feet; 5 52-35-41 E, 46.53 feet 5 85-06-59 E, 40.01 feet; 5 60-20-57 E, 12.72 feet; 5 35-27-18 E, 37.43 feet; 5 60-04-28 E, 39.02 feet; 5 84-37-50 E, 20.21 feet; N 59-26-24 E, 36.04 feet N 45-55-06 E, 27.10 feet; N 66-5549 E, 27.43 feet S 74-12-19 W, 47.14 feet N 86-06-05W, 28.83 feet; Thence N 74-45-18 W, 16.89 feet, along said Mean Higher High Water line, to the Point of Beginning and containing 52.25 acres of land, more or less. Notes: 1) Bearings are State Plane Grid, Texas South Zone, NAD' 83. 2) MHHW Line based on TCOON Gauge "Ingleside" 663 TAX ABATEMENT AGREEMENT BETWEEN CITY OF CORPUS CHRISTI, TEXAS AND CORPUS CHRISTI LIQUEFACTION, LLC TAX ABATEMENT AGREEMENT This Tax Abatement Agreement ("Agreement") is entered into and shall be effective as of , 2015, between THE CITY OF CORPUS CHRISTI, TEXAS ("City"), a home -rule city, and CORPUS CHRISTI LIQUEFACTION, LLC, a Delaware limited liability company ("Company"), pursuant to Chapter 312 of the Texas Tax Code ("Chapter 312"). RECITALS WHEREAS, Company desires to construct a natural gas liquefaction facility in three phases, or "trains" (as more particularly described in Exhibit A, the "Facility"), a portion of which which will be constructed on land located within City limits (as more particularly described in Exhibit B, the "Land"); and WHEREAS, Company expects that (i) the first train of the Facility will be constructed at a cost of at least One Billion Five Hundred Million Dollars ($1,500,000,000) and employ at least ninety (90) full-time employees; (ii) the second train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees; and (iii) the third train of the Facility will be constructed at a cost of at least Seven Hundred Fifty Million Dollars ($750,000,000) and employ at least thirty-five (35) full-time employees; and WHEREAS, City recognizes the positive economic impact that the Facility will bring to City and its extraterritorial jurisdiction through development and diversification of the economy, reduction of unemployment and underemployment through the production of new jobs, and the attraction of new businesses; and WHEREAS, City recognizes that a significant factor in Company's decision to construct the Facility on the Land is Company's eligibility to enter into agreements with taxing units having jurisdiction over the Land to abate property taxes on the Facility; and WHEREAS, Section 312.206 of the Texas Tax Code provides that a taxing unit other than a municipality may abate property taxes on property located in the taxing jurisdiction of the municipality if property taxes on such property are abated by the municipality pursuant to an agreement made under Section 312.204 of the Texas Tax Code; and WHEREAS, City has adopted guidelines for the abatement of ad valorem tax ("Tax Abatement Guidelines") pursuant to Chapter 312, and wishes to enable other taxing units having jurisdiction over the portion of the Facility located within City limits to participate in tax abatement with respect to such portion of the Facility pursuant to Chapter 312; and WHEREAS, the Facility will be a Basic Manufacturing Facility within the meaning of the Tax Abatement Guidelines and thereby eligible for tax abatement; and WHEREAS, to enable other taxing units to participate in tax abatement pursuant to Chapter 312 on the portion of the Facility located within City limits, City (i) has designated the Land as a reinvestment zone (the "Reinvestment Zone"), and (ii) shall, pursuant to its authority under Section 312.204 of the Texas Tax Code, abate under this Agreement maintenance and operations ad valorem tax on one dollar ($1) of the value of such portion of the Facility for one tax year; and WHEREAS, City and Company have entered into that certain Chapter 380 Economic Development Incentive Agreement (the "Chapter 380 Agreement"), the investment and job requirements of which must be complied with under this Agreement; NOW, THEREFORE, in consideration of the mutual benefits described in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Company agree as follows: ARTICLE I REPRESENTATIONS 1.1 Representations of City. City hereby represents to Company that as of the date hereof: (A) City is a duly created and existing municipal corporation and home -rule municipality of the State of Texas under the laws of the State of Texas and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B) City has the power, authority and legal right under the laws of the State of Texas to enter into and perform this Agreement and the execution, delivery and performance hereof (i) will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation, and (ii) does not constitute a default under, or result in the creation of any lien, charge, encumbrance or security interest upon any assets of City, under any agreement or instrument to which City is a party or by which City or its assets may be bound or affected. (C) This Agreement has been duly authorized, executed and delivered by City and constitutes a legal, valid and binding obligation of City, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by City does not require the consent or approval of any person that has not been obtained. 1.2 Representations of Company. Company hereby represents to City that as of the date hereof: (A) Company is duly authorized and existing and in good standing as a limited liability company under the laws of Texas and shall remain in good standing in Texas during the Term of this Agreement. (B) Company has the power, authority and legal right to enter into and perform its obligations set forth in this Agreement, and the execution, delivery and performance hereof, (i) have been duly authorized and will not, to the best of its knowledge, violate any judgment, order, law or regulation applicable to Company, and (ii) does not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of Company, under any agreement or instrument to which Company is a party or by which Company or its assets may be bound or affected. (C) This Agreement has been duly authorized, executed and delivered by Company and constitutes a legal, valid and binding obligation of Company, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by Company does not require the consent or approval of any person that has not been obtained. ARTICLE II DEFINITIONS The recitals to this Agreement are hereby incorporated for all purposes. The terms, "Agreement," "Chapter 312," "Chapter 380 Agreement," "City," "Company," "Facility," "Land," "Reinvestment Zone," and "Tax Abatement Guidelines" shall have the above meanings, and the following words or phrases shall have the following meanings: 2.1 "Act of Default" or "Default" means failure to timely, fully, and completely comply with one or more requirements, obligations, performance criteria, duties, terms, conditions or warranties of this Agreement. 2.2 "Commencement of Construction" means (i) to commence the work of constructing the improvements or features with all approvals thereof and permits required by applicable governmental authorities obtained as necessary to begin construction; and (ii) onsite construction of the site development components (such as drainage, extensive grading or utilities) is underway and being pursued for the Facility. 2.3 "Effective Date" means the first date by which this Agreement has been signed by all of the parties hereto, on which date the terms and provisions of this Agreement shall become effective. 2.4 "Investment Requirement" has the meaning set forth in the Chapter 380 Agreement, including the investment of not less than One Billion Five Hundred Million Dollars ($1,500,000,000) of capital in the first train of the Facility. 2.5 "Job Requirement" has the meaning set forth in the Chapter 380 Agreement, including the creation of not less than 90 full time jobs for the first train of the Facility. 2.6 "Term" means the period defined in Article III of this Agreement. ARTICLE III TERM The term of this Agreement (the "Term") will begin on the Effective Date and shall continue for five years after the end of the tax year with respect to which taxes are abated pursuant to Article V, unless earlier terminated by City as provided hereunder. ARTICLE TV ABATEMENT; COMPANY RE[T]IREMENTS 4.1 Abatement. (A) Pursuant to the City's authority under Chapter 312, and subject to the satisfaction of the Company's commitments under Article IV herein and the Company's timely and full compliance with all applicable terms and conditions contained in this Agreement, with respect to the first tax year after the year in which Commencement of Construction occurs, the City agrees to abate and exempt from City maintenance and operations ad valorem taxation one dollar ($1) of the value of that portion of the Facility that (i) is located within City limits and (ii) consists of improvements to real property. Such abatement shall apply only if the value of such improvements to real property exceeds the value of such improvements as of the Effective Date. (B) City hereby approves any variances from from the Tax Abatement Guidelines necessary to effectuate this abatement, and hereby waives the fling of any application for abatement otherwise required under the Tax Abatement Guidelines. 4.2 Company Requirements. (A) Company shall satisfy the Investment Requirement and Job Requirement, including any audit or other requirements relating thereto which are set forth in the Chapter 380 Agreement. (B) City employees shall have such access to the Facility as is required by Texas Tax Code Section 312.205(a)(2) to ensure that the improvements required by this Agreement are made. (C) The Facility shall be used in a manner consistent with the general purpose of encouraging development or redevelopment of the Reinvestment Zone. (D) Any ad valorem tax revenue lost by the City as a result of the abatement provided in Section 4.1(A) shall be recaptured if the Company fails to make the improvements required by this Agreement. (E) The Company shall certify annually to the City that it is in compliance with the terms of this Agreement. (F) Company is required to inform City in writing of Commencement of Construction. If Commencement of Construction has not occurred by January 1, 2018, City has the option to terminate the Agreement. (0) Failure by Company to comply with any requirements of this Agreement shall constitute an Act of Default. If such Act of Default is not cured and corrected within ninety (90) days after written notice to do so or by express waiver by the City, the City has the option to terminate this Agreement. ARTICLE V MISCELLANEOUS PROVISIONS 5.1 Binding_Effect. This Agreement will be binding on and inure to the benefit of the parties and their respective successors and assigns. 5.2 Termination. If Company elects not to proceed with the Facility as contemplated by this Agreement, Company will notify City in writing, and this Agreement and the obligations of both parties will be deemed terminated and of no further force or effect as of the date of such notice. Additionally, at any time during the Term, Company may elect to terminate this Agreement. Following the giving of said notice, this Agreement shall terminate and be of no further force or effect, and all parties shall be fully released of any further obligations under this Agreement relating to said designated part or parts of the Land. 5.3 Notice. Any notice or other communication ("Notice") given under this Agreement must be in writing and may be given: (i) by depositing the Notice in the United States Mail, postage paid, certified, and addressed to the party to be notified with return receipt requested; (ii) by personal delivery of the Notice to the party, or an agent of the party; or (iii) by confirmed facsimile, provided that a copy of the Notice is also given in one of the manners specified in (1) or (11). Notice deposited in the mail in the manner specified will be effective two (2) days after deposit. Notice given in any other manner will be effective only if and when received by the party to be notified. For the purposes of Notice, the addresses of the parties will, until changed as provided below, be as follows: Company: Cheniere Energy, Inc. Attention: Mr. Daniel Belhumeur 700 Milani Street, Suite 800 Houston, Texas 77002 City: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 Ph: (361) 826-3220 Facsimile: (361) 826-3839 with a copy to: City Attorney P.O. Box 9277 Corpus Christi, Texas 78469-9277 Ph. (361) 826-3360 Facsimile: (361) 826-3239 Any party may designate a different address at any time by giving Notice to the other party. 5.4 Interpretation. Each of the parties has been represented by counsel of their choosing in the negotiation and preparation of this Agreement. In the event of any dispute regarding the interpretation of this Agreement, this Agreement will be interpreted fairly and reasonably and neither more strongly for nor against any party based on draftsmanship. 5.5 Relationship of the Parties. This Agreement will not be construed as establishing a partnership or joint venture, joint enterprise, express or implied agency, or employer / employee relationship between the parties. Neither City nor its past, present or future officers, elected officials, employees or agents assume any responsibility or liability to any third party in connection with the development of the Facility or the design, construction or operation of any portion of the Facility. 5.6 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, it is the intention of the parties that the remainder of this Agreement not be affected, and it is also the intention of the parties that, in lieu of each provision that is found to be illegal, invalid or unenforceable, a provision be added to this Agreement which is legal, valid or enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 5.7 Paragraph Headings, Etc. The paragraph headings contained in this Agreement are for convenience only and will in no way enlarge or limit the scope or meaning of the paragraphs. 5.8 No Third Party Beneficiaries. This Agreement is not intended to confer any rights, privileges or causes of action upon any third party. 5.9 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. A facsimile signature will be deemed to be an original signature for all purposes. 5.10 Exhibits. The following exhibits are attached to and incorporated into this Agreement for all purposes, as if they were set forth herein in their entirety: Exhibit A: Facility Description Exhibit B: Land Description 5.11 Entire Agreement. This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written, previous and contemporary, agreements between the parties relating to matters in this Agreement; and, except as otherwise provided herein, this Agreement cannot be modified or amended without a written agreement of the parties. 5.12 Law. This Agreement is subject to all legal requirements of Texas and all other applicable County, State and Federal laws, and the Company agrees that it will promptly comply with all such applicable laws, regulations, orders and rules of the State, County and other applicable governmental agencies. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas without. regard, however, to the conflicts of laws provisions of Texas law. 5.13 Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 5.14 Confidential. City, its officers and employees, and its agents or contractors retained to perform economic development services for City, shall treat as confidential any information delivered by the Company or its respective representatives to City and its representatives for purposes of this agreement and shall not release such information to the public unless required by law such as the Texas Public Information Act or court order. City shall immediately notify the Company of requests or court orders to release such information. [Signature page follows] EXECUTED to be effective as of this day of , 2015. CORPUS CHRISTI LIQUEFACTION, LLC B y: Name: Title: CITY OF CORPUS CHRLSTI, TEXAS ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta, City Secretary Ronald L. Olson City Manager EXHIBIT A FACILITY REINVESTMENT ZONE MAP WITH IMPROVEMENT LAYOUT 125.2 ACRES REYNO DS/ALCOA RETAINED TRACT jl3 DOC.! 2001000017, O.P.R.N.C.T. rk 3! SHERINTN ,LUMI r1' 6 COPANY . PROPOSED REINVESTMENT ZONE SHADED IN BLUE CORPUS CHRISTI BAY 109 CNFCHSbN Corpus Christi junsdictian shown in blue area LINE BEARING. O 5 1732'4.r E , .}';4'14"E 13.555 7 14 0039'0077'005, 14 414.07 iu 44 25'01X51.5„ 45 54, w 13M 141 5 85'437'" w 72.49 L12 H 02:1612Q. 97 113 N 54'4025 E 18.36 114 5 84'44,31" F 50.14 115 5 03116 44 E 3814 1,170 y5 7216'10, E 17.0e7 .271.44 1,5$6 72 4Tte�4, E 1G:23— �$' 2 122 56 _ 123 5 86'11 4.y" 1.245 43'71'1 S 43 11.705 NN 447.74' f 4 L17,.L.1 2U7,77 g &:: L55 5 70"54 (. 17.87 L29 14 0635,4 C, 73.34 L39 N 36'1 55314 637 7'_:1_97 53 E . 31.14 J 13.S.kR"R7�'p" E 43.91 L 36 49 1_35 14 66'90'14 E 0079.34 5 57'36 51 E J14 A 611473_ F. 13.61 137 14 57'01,51 F 68.36 138 S 6011 40' E 4139 1445A...66'0•01 24-F 4768 141 89'44'47" F 1047 LA? N 50'0451" E 39.37 S:t3.1 45; E 137.70 b 871e 148 N 8€59'707" 77777.28 L4 5 1669 5 5 72'29' 166 5 7741° 2'1" 73.114 154 5 77-514E 62.46 152 5 7034'3.723 " F 52.86 1.54 N 80'31,97 F 4347 454 5 72'31- F {7,49 1NE 19:40155 01514, FF, '33' 30 457 5 84'06' 14 LL55g 55 N 74 0 555S555p S 57 ' , 45.'53 �FS7$¢ 4"3151.77 5 6 6 2.3� ,7278,72 L50 5 51'55,20 170 5 74'84 44 E 38 1 171 N 64,2 E 15.05 1.72 74 q �$] E. 23.44 ��L73 5 74�. '0g575 F 24.85 L7556a 1350 .55 1.76 14 57-13`54 € 11 473. 1.77 N 15'1459 E 77.3 y78,5 30'14`03 E, 24.00 L60 5 0T5 1737:3' E . 5,14 1 �E 59.51 .L.14.6y72' 4714 L081 da'34 E 60,53 L5914 5804,714 E 61 }¢ L90 5 673. TO E 49.74 91.5 651141" F 51.66 3 E :,81 1.937464'174'" F '45713 194 5 79.79'43 F 56 99 94, S 57-38150' 1' 146 �7j6 446 5 r44:4?::E 1ti1., 4 498 585 vg f5. L 5 0 72.7. JU 32215 50'04':9 309.Q 4723 05 55 Q4 El 50454 11949 1.157 �„ 4'10 19" w1 47,14 11079 84'01%05• w, 7853 1198N 74'45'16' 04]0,59 1. 10 313E 00111411641447 14145 7749710116 1404 13119 8411917. 2. METES. AND BOUNDS 0E5CRIPT150 01900477R49s 1345 04,414940. 3. BEARINGS ARE STATE RAKE !Rim, TEx45 501135 LONE. 0749'63 ALL PROPOSED QUALIFIED INVESTMENT AND QUALIFIED PROPERTY ARE WITHIN THE PROPOSED REINVESTMENT ZONE AND WITHIN THE BOUNDARY OF CORPUS CHRISTI ISD I, 0(0551 61184LGA&1, 17EHSEO SLATE LA410 51181147077, 11481187 STATE MAT THOS 3947100' REPRESENTS THE LON0119N5 17146 (341511417 AT THF 1144E OF 41140 ' . HNPs WATER LMH LIN( 411A93EY CO+IONGTE3 �T- E? 5140E µM0 UA, SUITE 765? 5 CHR1511, 70335 97401 696-3329 9q_1�14ALCAIA 7'a 422161 74.471 1 1 P0.' 0 1 EXHIBIT B LAND 282428 METES AND BOUNDS DESCRIPTION OF A 52_25 ACRE TRACE 9eing 57_25 acres of land, out ofa 212.20 acre tract of land as described in Doalment No. 490819, Official Public Records of San-Patriro County, Texas, also being out of a 3285 acre tract, referred to as 'Tract 2, Parcel 2A', described In Document No. 2001000017, Official Public Records of Nueces County, Texas, and a 832.0 acre tract referred to as "Reynolds/Alcoa Retained Tract r in Document No. 2001000017, Official Public Records of Nueces County, Texas, and being more particularly described by metes and bounds as follows: Commencing at a found 5/8 inch iron rod, being the southeast corner of a X75 2 acre tractreferred to as "Reynolds/Alcoa Retained Tract 3" In f3acumentNo.2001000017, Official Publicfteiaoi is(sfNiteces County; Texas, said comer having a State Plane Grid Coordinate of N 1721110944', E-;-1,3))3,532.78'„ NAD' 83, Texas South Zone, and said comer also being an inside comer ofsa#d 1.2,z° acre tract as shown in MEI Govind drawing no. 0309-501-004 and drawing 00.0309.501.-00S; Thence along the northeasterly boundary of said 21120 acre tract, 517-32,44 E;-250.80. feet, to the Poiret of Beginning and northeast corner of this herein described tract, said comer having a State Plane Grid Coordinate of N 17,110,870.02', E, 1,383,608.38', NAD' 83, Teams South Zone, and being on the Mean Higher High Water line of Corpus Christi Bay; Thence 5 17-31-44 E, 46.08 feetto an interior corner of this herein describedtract same behig an interior corner of said 212.20 acre tract Thence 5 01-10-32 E 767.00 Peet, to a point on the on the south lirie.af a31.82 acre tract, referred to as Tract 1, Parcel 5" as recorded In Document No. 2001000'017, Official Public Records of Nueces County, Texas, said point being the Port of Corpus Christi Authority North Bulkhead Line, also being the southeast corner of said 21220 acre tract, same being the southeast corner oft his herein described tract; Thence along the south boundary of this herein described tract, the south boundary at said 212.20 acre tract, the North Bulkhead line, N 77-30.54 W, 3569.00 feet, to the southwest corner of this herein described tract, same being the southwest corner of said 212_20 acre tract; Thence leaving said North Bulkhead Line, N 07-00-29 W, 244.22 feet, to an interior corner of this herein described tract, said Darner being on the west boundary line of said 21220 acre tract, and also being pn said Mean Higher High Water line (MHHW); Thence along said Mean Higher High Water Line as follows: N 87-07-14 8, 13,56 feet; 532.02-58 E, 21.05 feet; N 68-07-Q8 E, 19.S7 feet; 5 61-24-17 6,14-94 feet; N 45-45-36 6,1355 feet; N 25-00-56 W, 72-49 feet; Thence 585-4321 W, 42,23 feet, to an interior corner of this herein described tract, said corner being an the west boundary line of said 212-20 acre tract Thence along the west boundary of said 21220 acre tract, N07-00-29 W, 30.33 feet, to the northwest comer ofthis herein described tract, and being on said Mean Higher High Water line; Thence with said Mean Higher High Water Line (Ml1HW) as follows: N 84-40-25 E,16.36feet; S 84-44-33. f 30.3 feet; 503-16-16 E 36.14 feet; 5 72.16-10 E, 17.07 feet; N 33.23-13 E, 27.28 feet S 87-50-01 E, 3047 feet; N 82-2_2-56 6, 49.49 feet; N 87-19-40 8, 40.23 feet S 52-13-54 E; 24.71 feet; 531-48-19 E, 30.33 feet 662 182428 N 37-21-50 W, 9.14 feet; N 48-34-53 E, 60.93 feet; N 88-03-21 E, 61.52 feet; 5 62-33.10 E. 49.74 fees 5135-11-41 E, 51.88 feet; N 79-36-23 E, 36.81 feet; N 6542,45 E, 35.50 feet; 5 79-22-43 E. 56.49 feet; 5 56-38.50 E, 58.76 feet; 542-44-43 E, 11154 feet; $ 52-35-41 E, 46.53 feet; 5 85.05-59 E, 4001 feet 5 60-20-57 E, 12.72 feet, 5 35-27-18 E, 37.43 feet 5 60-04-28 £, 39.02 feet; 5 84-3750 E, 2021 fret; N 59-26-24 E, 36.04 feet N 45-55-05 E, 27.1.0 feet; N 66-55-49 E, 27.43 feet; 5 74-12-19 W, 47.14 feet; N 86-06.05 W,18.83 feet; Thence N74-45-15 W, 16.39 feet, along said Mean Higher High Water Llrre, to the Point of Beginning and containing 52.25 acres cf land, more or less. Notes; 11 Bearings are State ?lane Grid, Texas South zone, NAEP 83. 2) MHHW Line based on TCODN Gauge "Ingleside' 663 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 their 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: January 27, 2015 Agenda Item: Approving a resolution authorizing the execution of an agreement with Corpus Christi Liquefaction, LLC providing for temporary property tax abatement Amount Required: $ NA Fund Name Account No. Fund No. Org. No. Project No. Amount $ Total $ ® Certification Not Required Director of Financial Services Date: AGENDA MEMORANDUM Future Item City Council Meeting of 1/20/2014 Action Item for the City Council Meeting of 1/27/2014 DATE: TO: FROM: December 12, 2014 Ronald L. Olson, City Manager Kimberly Jozwiak Kim berlyJ @cctexas. com (361)826-2515 Lease Extension Amendment for 615 Leopard, Suite 113A City Detention Center CAPTION: Motion to authorize City Manager, or designee, to execute a Lease Expansion Amendment which applies to the original Lease Agreement dated April 13, 2004, between Landlord, Wilson Plaza Associates LP., and Tenant, The City of Corpus Christi for suite number 113-A, located at 615 Leopard Street. PURPOSE: The Municipal Court Administration currently utilizes the leased suite for the operation of the City Detention and Magistration Center. It is necessary to increase the suite by approximately 793 additional net rentable square feet, which shall be added to the approximately 4,710 net rentable square feet, for a total of 5,503 net rentable square feet. The expanded area allows for the creation of a safety vestibule for the Police Department, which Council approved last year. The current monthly lease payment is $6,175.49 for approximately 4,710 rentable square feet. The monthly lease payment will increase to $7,006.85 for a total of 5,503 net rentable square feet. This is an annual total sum of $91,089.05, payable in monthly installments, in advance. BACKGROUND AND FINDINGS: In April, 2004, City Council approved a 7 year lease agreement for the City Detention and Magistration Center at the Wilson Plaza Building. Said lease agreement commenced on September 1, 2004, and ended August 31, 2011. In November, 2011, City Council approved a 2 -year lease agreement extension for the City Detention and Magistration Center. Said lease agreement extension commenced on December 1, 2011, and expires on November 30, 2015, at which time both the existing lease agreement and this lease expansion addendum may be incorporated as one. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: City Council must authorize the City Manager to execute a contract or agreement that exceeds $50,000. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Legal, Finance FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 91,089.05 91,089.05 Encumbered / Expended Amount 91,089.05 91,089.05 This item BALANCE -0- -0- Fund(s): Comments: RECOMMENDATION: Staff recommends the City Council approve the proposed motion. LIST OF SUPPORTING DOCUMENTS: Lease Expansion Amendment with attachments TEASE EXPANSION AMENDMENT I. This Lease Expansion Amendment applies to the Lease Agreement dated April 13, 2004 between Landlord, Wilson Plaza Associates L.P., and Tenant, The City of Cornus Christi. Landlord leases to Tenant and Tenant leases from ` Landlord, upon the terms and conditions herein and those set forth in the previous Lease agreement's dated November 15, 201.3 and December 1. 2011, unless otherwise agreed herein, the demised premises described below. A copy of the original April 13, 24)04 lease agreement is available in the manager's office: Wilson Plaza Associates, LP, 606 N Carancahua, #900, Corpus Christi, TX 78401-0669. 1. The above referenced lease is for the demised premises located at 615 Leopard, Suite 113A, Corpus Christi, Texas, and should be amended on page 1 to read as follows: 2. Demised Premises: Approximately 793 additional net rentable square feet shall be added to the approximately 4,710, net rentable square feet for a total of 5.503 net rentable square feet. 3. Lease Term. Commencing on November 1, 2014 and ending Novem r 30, 2015. 4. Basic Rental: A total sum of $91,039.05 (Ninety One Thousand Eighty Nine. and 05/100 Dollars) payable...in monthly installments of $7,006.85 in advance, during the lease term. II. LEASE EXPANSION AMENDMENT: All construction shall be as shown on Exhibits "B-2" Construction Plan. Tenant shall pay in one lump .sum the cost for construction as approved on Exhibits "C-1" and "C-2" Approved Tenant Improvements. Landlord: Wilson Plaza ciates, LP Tenant: The City of Corpus Christi Herman A Parker Date: / lei 1000 0/0/1 Exhibits: "A" Legal Description "B" Floor Plan "B-1" Expansion Floor Plan "B-2" Construction Plan "C-1" Tenant Approved Plan "C-2" Approved Tenant improvements Date: • - • - A7TAC1MENT UA t,EGALDE8gR/FT101,1 • Meted In the County of Mimes' ;'Stete ofTwois, to -wit TRACT: Lot No. One (1), Two (2), Three (3),, Four (4), Five (5) and Six. (6) jn Nixon RePlatofthe 4913 No, FiVe (5), SIX (6), Seven-17),-atid _eight 114). BlOok Three:(3), BLUFF PORTION of the City of Corpus Mist NW= Comfy, Texas, stiiogniktglo tha:rnap-or plat thereof. recorded on Vokine 4, Page 18, Map Rartords,Nueces-Courtly, Texas. . • , ' TRACT It Ws (2), in BlOck Three t3} Febi_(4),.Nine.(9), Ten (10), Eleven (11) and Tweihre (12);iii Blot* Three (3), of the BLUFF PORTION of the Cfty of _Corptis Christi. Texas, as shown by the map or platthereof,; recorded in Veltane:A, Page3, Map Racoici,s, Noeces County, Texas. . -.TRACT III: Being a part pflhe BLUFF PORTION af the Citsr af Corpus Christi, Texas. as shownonthe map or plat of-ealircity, recorded in \Milos A Page 3. Map Records, Nuaces County. Texas and being more particularly disscribedloiMetes and bor.endatis follows: BEGINNNQ at,a drip hole, in a otinfreter retaining Wall, in the east boundary line, of North Coranoah* 'Street; The Southwest .ctimer of Blot* 3, BLUFF- PORTION a the City of Corpus Christi, Tex*bnd soUthweitipoirter of the R. MAtiberg Tract, for the nOrtliweit comer of this survey; Thence South 88 degrees 31t0ir East with the south boundary line of Said Black 3, and north boundary line of Weld Kleberg Track and with the.general course of on old board fence, 301.78 feet to a one inch iron pitiiirri the watt WOW:my line of North Broadway. the Southeast comer afraid Block 3, the northeast comer of said klebat Tract, .for_The Northeast coiner title stirrer THENCE -South 1 degree 00West with the saki West boundary of North Broadway, and east hatingelY line 0? sakfkleberg Tract, 50 feetto a iste Inch iron pipe for the Southeast comer ofthis Survey; THENCE North 138 degrees 31120" West parallel with said south boundary line of Block 3. and:north _ boundary line (*said Kleberg Tract, 301.84 feat to a drill hole in a concrete retakihrg wail in saki oast boundary line .of North Carenotihuo Stnset, and Welk boundary line of said Klebere Tract, for the - southwest-cameztthissuntey;-_____ TI-IENCE North 1 degree 0520° East isirith said east boundary line a North Carancehue Street and wt boundary line of Said *thong Tract, 50 feat to the PLACE OF BEGINNING and being the same hind as desclibed a dett2in deed dated MaY 5. 1930, from R. M. HL=terg, and wife. Mania S. Kieberg to - D. K. Martin. Tnistee1 Which is recorded in Volume 1Q4 page 138430. Deed Records, Nueces County, Texas. • EXHIBIT "B" FLOOR PLAN ,yeLySTR❑❑M RESIRDOM EYE SH ARVA SEE BENCH INSET 0 n EXHIBIT .7B-1" EXPfOtikPLAN 0 EXHIBIT "B-2" CONSTRUCTION PLAN - -- n ;; FINISH C©NSTRUCTIQN. AS PER BUILDING STANDARD w:-_ E-1/NS A-17iL RESTROOM, •4NSTALL E WASH AR NAG BOOR) BENCN INSET ET CH 1PE 4 - 1 EXHIBIT "C-1" TENANT APPROVED: PLAN f:IJC 4: €CRIME IA_LS 4 X14 RESTORE BOOKING AREA. TENANT 1iAPROViEME is Cliy Catenljvn Canty SUITE -4113 JOB DESC EflON cost KILL AREA; INS ALL EYEWASH, IN,2ND•RESTRO • . IN THE DEMO EXISTING WALLS S CEILING. cONSTRUCT ASPER DRAWING REPAIR E TING'WALLS, MUD,SANIM PAINT CEILING/4013,8k CEMENT WORK 2 METAL -BENCHES WITH IPPE'INSTAI..LED AND ANCHORED TO, THSFLOOR REMOVE EXISTING EQUIPMENT IMF TS. OUTLETS, CONDUIT' — ETc:FDR DEMO QF WALLS RELOCATE b AD EW LIGHTS, OUTLETS, CONDUIT ETC. IN NEW WALLS. oireer4-0/ S1.4 Accepted B Maori Pk= Ausacii , L.P., 0013N LABOR AND MATERIAL 4E I5.t1O. TOTAL . $40,951 00 Dais , 70040142669, 1.084.81itao0,111 Icam AGENDA MEMORANDUM Future Item for the City Council Meeting of January 27, 2015 Action Item for the City Council Meeting of February 10, 2015 DATE: TO: Ronald L. Olson, City Manager January 27, 2015 FROM: Gabriel Maldonado, Interim Procurement Manager gabrielm@cctexas.com (361) 826-3169 Stacie Talbert, Interim Director of Parks and Recreation staciet@cctexas.com (361) 826-3464 Service Agreement for Rental of Motor Grader and Wheel Loaders CAPTION: Motion approving a service agreement with Doggett Heavy Machinery Services, Corpus Christi, Texas for the rental of one (1) motor grader and three (3) wheel loaders in accordance with Bid Invitation No. BI -0197-14, based on only bid for a total expenditure of $560,709.00, of which $166,136.00 is required for the remainder of FY 2014-2015 The term of the agreement shall be for twenty-seven (27) months. Funds have been budgeted by the Parks and Recreation Department in FY 2014-2015. PURPOSE: The equipment will be used by the Beach Operations Division of the Parks and Recreation Department to maintain the beach and beach roadways. BACKGROUND AND FINDINGS: The equipment will be used for nine (9) months out of the year, from February through October, for three (3) consecutive years and will be returned to the vendor each year for the three (3) months that it is not being used. The City will not be charged for those three (3) months. ALTERNATIVES: The decision to rent equipment in lieu of purchasing it was made due to the harsh conditions at the beach. The service agreement provides for full maintenance that will keep the units operational throughout the term of the agreement. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Parks and Recreation Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fund(s): General Fund Comments: The $166,136.00 financial impact shown above represents eight (8) months of expenditures that will be encumbered through the end of this fiscal year. The remaining $394,573.00 for the last nineteen (19) months of the contract will be requested for future fiscal years during the normal budget process. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation Project to Date Fiscal Year: 2014- Expenditures Current 2015 (CIP only) Year Future Years TOTALS Line Item Budget $240,000.00 $394,573.00 $634,573.00 Encumbered / Expended Amount $19,456.90 $0 $19,456.90 This item $166,136.00 $394,573.00 $560,709.00 BALANCE $54,407.10 $0 $54,407.10 Fund(s): General Fund Comments: The $166,136.00 financial impact shown above represents eight (8) months of expenditures that will be encumbered through the end of this fiscal year. The remaining $394,573.00 for the last nineteen (19) months of the contract will be requested for future fiscal years during the normal budget process. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GERALD GOODWIN ITEM 1 2 DESCRIPTION BID TABULATION BID INVITATION NO. BI -0197-14 MOTOR GRADER & WHEEL LOADERS Rental of 1 motor grader with maintenance agreement per Specification No. 1089. Rental of 3 wheel loaders with maintenance agreement per Specification No. 1080. Total: Doggett Heavy Machinery Services Corpus Christi, Texas UNIT EXTENDED QTY UNIT PRICE PRICE 27 Month $8,500 $229,500 27 Month $12,267 $331,209 $560,709 RENTAL OF MOTOR GRADER AND WHEEL LOADERS SERVICE AGREEMENT Service Agreement No. THIS Rental of Motor Grader and Wheel Loaders Service Agreement (this "Agreement") is entered into by and between Doggett Heavy Machinery Services (the "Contractor") and the City of Corpus Christi, a Texas home -rule municipal corporation (the "City"), by and through its duly authorized City Manager or designee ("City Manager'), effective for all purposes upon execution by the City Manager. WHEREAS Contractor has proposed to provide Rental of Motor Grader and Wheel Loaders in response to Bid Invitation No. BI -0197-14 (which includes Specifications 1080 and 1089 dated 6/12/14) which is incorporated and attached as Exhibit A; WHEREAS the City has determined Contractor to be the lowest responsible bidder; NOW, THEREFORE, Contractor and City enter into this Agreement and agree as follows: 1. Services. Contractor will provide Rental of Motor Grader and Wheel Loaders in accordance with Bid Invitation No. BI -0197-14 (which includes Specifications 1080 and 1089 dated 6/12/14) (Exhibit A). 2. Term. This Agreement is for three (3) consecutive nine-month terms of February 1, 2015 through October 31, 2015, February 1, 2016 through October 31, 2016, and February 1, 2017 through October 31, 2017 for a total of twenty-seven (27) months. 3. Contract Administrator. The Contract Administrator designated by the City is responsible for approval of all phases of performance and operations under this Agreement including deductions for non-performance and authorizations for payment. All of the Contractor's notices or communications regarding this Agreement must be directed to the Contract Administrator, who is the Beach & Special Events Superintendent. 4. Independent Contractor. Contractor will perform the services hereunder as an independent contractor and will furnish such services in its own manner and method, and under no circumstances or conditions may any agent, servant or employee of the Contractor be considered an employee of the City. 5. Insurance. N/A 6. Assignment. No assignment of this Agreement or any right or interest therein by the Contractor is effective unless the City first gives its written consent to such assignment. The performance of this Agreement by the Contractor is of the essence of this Agreement and the City's right to withhold consent to such assignment is within the sole discretion of the City on any ground whatsoever. 7. Fiscal Year. All parties recognize that the continuation of any contract after the close of any fiscal year of the City (the City's fiscal year ends on September 30th), is subject to appropriations and budget approval providing for covering such contract item as an expenditure in said budget. The City does not represent that said budget item will be actually adopted as that determination is within the sole discretion of the City Council at the time of adoption of each budget. 8. Waiver. No waiver of any breach of any term or condition of this Agreement, or Bid Invitation No. BI -0197-14 (which includes Specifications 1080 and 1089 dated 6/12/14), or the Contractor's bid offer to Bid Invitation No. BI -0197-14 (Exhibit B) waives any subsequent breach of the same. 9. Compliance with Laws. This Agreement is subject to all applicable federal, state and local laws. All duties of the parties will be performed in the City of Corpus Christi, Texas. The applicable law for any legal disputes arising out of this Agreement is the law of Texas and such form and venue for such disputes is the appropriate district, county or justice court in and for Nueces County, Texas. 10. Subcontractors. The Contractor may use subcontractors in connection with the work performed under this Agreement. When using subcontractors, however, the Contractor must obtain prior written approval from the Beach & Special Events Superintendent. In using subcontractors, the Contractor is responsible for all their acts and omissions to the same extent as if the subcontractor and its employees were employees of the Contractor. All requirements set forth as part of this Agreement are applicable to all subcontractors and their employees to the same extent as if the Contractor and its employees had performed the services. 11. Amendments. This Agreement may be amended only by written Agreement duly authorized by the parties hereto and signed by the parties. 12. Termination. The City Manager may terminate this Agreement for Contractor's failure to perform the services specified in Bid Invitation No. BI -0197-14 (which includes Specifications 1080 and 1089 dated 6/12/14). The Contract Administrator must give the Contractor written notice of the breach and set out a reasonable opportunity to cure. If the Contractor has not cured within the cure period, the City Manager may terminate this Agreement immediately thereafter. Alternatively, the City may terminate this Agreement upon twenty (20) days' written notice to the Contractor. However, the City may terminate this Agreement on twenty-four (24) hours' written notice to the Contractor for failure to pay or provide proof of payment of taxes as set out herein. 13. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes and all other related taxes according to Circular E Employer's Tax Guide, Publication 15, as it may be amended. Upon his request, the City Manager shall be provided proof of payment of these taxes within fifteen (15) days of such request. The Contractor may terminate this Agreement upon ninety (90) days' written notice to the City. 14. Drug Policy. The Contractor must adopt a Drug Free Workplace policy. 15. Violence Policy. The Contractor must adopt a Violence in the Workplace policy. 16. Notice. Notice may be given by fax, hand delivery or certified mail, postage prepaid, and is received on the day faxed or hand -delivered and on the third day after deposit in the U.S. mail if sent certified mail. Notice shall be sent as follows: IF TO CITY: City of Corpus Christi Attention: Beach & Special Events Superintendent P.O. Box 9277 Corpus Christi, Texas 78469-9277 IF TO CONTRACTOR: Contractor Contact Address: City, State, Doggett Heavy Machinery Services Drew Schuelke 134 N. Padre Island Dr. Corpus Christi 17. Month -to -Month Extension. N/A TX 78406 18. Severability. Each provision of the Agreement shall be considered to be severable and, if, for any reason, any such provision or any part thereof, is determined to be invalid and contrary to any existing or future applicable law, such invalidity shall not impair the operation of or affect those portions of this Agreement that are valid, but this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision or part thereof had been omitted. 19. INDEMNIFICATION. CONTRACTOR SHALL INDEMNIFY, HOLD HARMLESS AND DEFEND THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES AND AGENTS ("INDEMNITEES") FROM AND AGAINST ANY AND ALL THIRD PARTY LIABILITY, LOSS, CLAIMS, DEMANDS, SUITS AND CAUSES OF ACTION OF ANY NATURE ON ACCOUNT OF DEATH, PERSONAL INJURIES, PROPERTY LOSS OR DAMAGE OR ANY OTHER KIND OF DAMAGE WHATSOVER, INCLUDING ALL LIABILITY FOR DAMAGES ON ACCOUNT OF OR BY REASON OF BODILY INJURY, INCLUDING DEATH, NOT LIMITED TO THE EMPLOYEES OF CONTRACTOR, THE CITY, AND OF ANY SUBCONTRACTOR OR CONTRACTOR, AND FROM AND AGAINST ANY AND ALL DAMAGES TO PROPERTY, INCLUDING PROPERTY OF THE CITY OF CORPUS CHRISTI AND OF THIRD PARTIES, TO THE EXTENT DIRECTLY CAUSED BY AN ACT OF OMISSION OF CONTRACTOR OR ITS AGENTS, EMPLOYEES, VENDORS, OR SUBCONTRACTORS, OF THEIR EMPLOYEES OR AGENTS IN CONNECTION WITH THE PERFORMANCE OF THE CONTRACT, WHETHER OR NOT INSURED AGAINST, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, ATTORNEYS' FEES AND EXPERT WITNESS FEES. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR SOONER TERMINATION OF THIS AGREEMENT. 20. Contractor's Rental Agreement. Notwithstanding the foregoing, the terms and conditions included in Contractor's standard rental agreement shall additionally apply to the equipment being rented by the City of Corpus Christi which is referenced in this Agreement, and in the event of any conflict between this Agreement and Contractor's standard terms and conditions, Contractors standard terms and conditions shall prevail. SIGNED this ) day of A % , 20 1 . Contractor Doggett Heavy Machinery Services CITY OF CORPUS CHRISTI ("CITY") Christela Morales Date Procurement Manager Incorporated by Reference: Exhibit A: Bid Invitation No. BI -0197-14, including Specifications 1080 and 1089 (Available upon request) Exhibit B: Bidder's Bid (Available upon request) AGENDA MEMORANDUM Future Item for the City Council Meeting of January 20, 2015 Action Item for the City Council Meeting of January 27, 2015 DATE: January 20, 2015 TO: Ronald L. Olson, City Manager FROM: Rebecca Huerta, City Secretary rebeccah@cctexas.com (361) 826-3105 Appointing Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation CAPTION: Motion appointing Council Members Nelda Martinez, Chad Magill, Lillian Riojas, Mark Scott, Carolyn Vaughn, Brian Rosas, Lucy Rubio, Colleen McIntyre and Rudy Garza, Jr. as Board Members of the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation. PURPOSE: The City has three corporations for which the City Council serves as the Board of Directors. These corporations are the Corpus Christi Community Improvement Corporations (CCCIC), the Corpus Christi Housing Finance Corporation (CCHFC), and the Corpus Christi Industrial Development Corporation (CCIDC). Of these three corporations, the Corpus Christi Community Improvement Corporation is incorporated under the Texas Nonprofit Corporations Act and, therefore, appoints its own membership, as opposed to the other two to which the City Council makes the appointments. BACKGROUND AND FINDINGS: Not Applicable. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Not Applicable. CONFORMITY TO CITY POLICY: Not Applicable. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Housing & Community Development Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: Not Applicable RECOMMENDATION: Staff is recommending approval of the Motion as presented. LIST OF SUPPORTING DOCUMENTS: None. AGENDA MEMORANDUM Future Item for the City Council Meeting of January 20, 2015 Action Item for the City Council Meeting of January 27, 2015 DATE: January 8, 2015 TO: Ronald L. Olson, City Manager THRU: Susan Thorpe, Assistant City Manager SThorpe@cctexas.com 361.826.3898 Eddie Ortega, Director EddieO@cctexas.com 361.826.3224 FROM: Rudy Bentancourt, CD Administrator RudyB@cctexas.com 361.826.3021 Annual Board Meeting of the Corpus Christi Housing Finance Corporation CAPTION: Annual Board Meeting of the Corpus Christi Housing Finance Corporation PURPOSE: The purpose is to hold the Annual Board Meeting of the Corpus Christi Housing Finance Corporation in order to elect officers and consider the adoption of a resolution pertaining to a loan to be made in connection with the Lexington Manor Apartments, an affordable housing project. BACKGROUND AND FINDINGS: Election of Officers After each City Council election and the appointment of new board members, the CCHFC must elect new officers. The Bylaws provide for the following: President, Vice President, Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, General Manager and Assistant General Manager. Typically, the President and Vice President have been elected from the Board of Directors and previously were David Loeb and Priscilla Leal, respectively. The Bylaws provide that all officers do not have to be Board members, and the remaining positions have been held by the persons on City staff holding the functional equivalent positions. The recommendation for these positions is as follows: Secretary Rebecca Huerta Assistant Secretary Paul Pierce Treasurer Assistant Treasurer General Manager Assistant General Manager Lexington Manor Apartments Project Margie C. Rose Constance Sanchez Ronald L. Olson Susan K. Thorpe TG 110 Lexington, LP is the owner of the Lexington Manor Apartments and was awarded low- income housing tax credits from the Texas Department of Housing and Community Affairs (TDHCA) from the statewide at -risk pool. This project also was awarded local HOME funds from the Corpus Christi Community Improvement Corporation, but its eligibility for the tax credits is conditioned upon the receipt of an additional interim loan from a local housing entity. The project is coordinated by Housing & Community Services, Inc. of San Antonio (HCS). Lexington Manor is an existing 153 -unit multi -family housing development at 3126 Ray Ellison Drive in Corpus Christi. The closing of the tax credit transaction will result in the complete redevelopment of that project. On February 25, 2014, the CCHFC Board approved the issuance of a loan commitment to provide an interim loan in an amount up to the difference between the minimum amount required under TDHCA rules for the local points award (estimated at $2,295,000) and the actual amount of HOME funds allocated to the project. After completion of the scoring by TDHCA and the HOME funds allocation by the Corpus Christi Community Improvement Corporation, the resulting interim loan requirement is $1,400,000. As required by the conditions of the loan commitment made by the CCHFC, HCS has made arrangements with its lender for the project, Wells Fargo Bank, National Association, to loan the $1,400,000 to the CCHFC, which will re -loan the funds to TG 110 Lexington, LP, the owner of the project. The loan from Wells Fargo Bank will be a special obligation of the CCHFC repayable solely from the proceeds that it receives from its loan to TG 110 Lexington, LP. Approval of the attached Resolution authorizing the $1,400,000 loan from Wells Fargo Bank and the lending of said $1,400,000 loan proceeds to TG Lexington, LP is required for the project to close. The CCHFC Bylaws have previously been amended to hold the annual meeting in February. However, the annual meeting will be held in January in order to officiate the time sensitive resolution request and avoid loss of project funding. ALTERNATIVES: N/A. The City has already committed its HOME Program funds for the project. The remaining funding amount must be made from the loan structure proposed. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The action conforms to all applicable City and CCHFC policies. EMERGENCY / NON -EMERGENCY: Non -Emergency. This item requires only one meeting of the CCHFC Board. DEPARTMENTAL CLEARANCES: Housing and Community Development and City Secretary's Office FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: N/A RECOMMENDATION: Staff recommends the approval of the loan to TG 110 Lexington, LP. LIST OF SUPPORTING DOCUMENTS: Agenda for CCHFC Board Meeting Unapproved April 29, 2014 Board Meeting Minutes Treasurers Report Resolution Date: Time: Location: AGENDA CORPUS CHRISTI HOUSING FINANCE CORPORATION ANNUAL MEETING Tuesday, January 27, 2015 During the meeting of the City Council beginning at 11:30 a.m. City Council Chambers, Corpus Christi City Hall 1201 Leopard Street Corpus Christi, Texas 78401 1. Call meeting to order. 2. Secretary Rebecca Huerta calls roll. Board of Directors [Vacant], President [Vacant], Vice President Rudy Garza, Jr. Chad Magill Nelda Martinez Colleen McIntyre Lillian Riojas Brian Rosas Lucy Rubio Mark Scott Carolyn Vaughn Officers Ronald L. Olson, General Manager Susan K. Thorpe, Asst. General Manager Rebecca Huerta, Secretary Paul Pierce, Asst. Secretary Margie C. Rose, Treasurer Constance P. Sanchez, Asst. Treasurer 3. Approve minutes from the Board meeting on April 29, 2014. 4. Treasurer's Report 5. Election of Officers: President Secretary Vice President Assistant Secretary Treasurer Assistant Treasurer General Manager Assistant General Manager 6. Resolution Authorizing the Execution of Loan Documents with TG -110 Lexington, LP and Wells Fargo Bank, National Association, in connection with a loan in the amount of $1,400,000 to assist in financing the redevelopment of the Lexington Manor Apartments 8. Public comment. 9. Adjourn. MINUTES CORPUS CHRISTI HOUSING FINANCE CORPORATION SPECIAL MEETING April 29, 2014 3:02 p.m. PRESENT Board of Directors Officers David Loeb, President Susan K. Thorpe, Asst. General Manager Kelley Allen Rebecca Huerta, Secretary Rudy Garza, Jr. Vacant, Assistant Secretary Chad Magill (arrived 3:04) Constance P. Sanchez, Assistant Treasurer Nelda Martinez Colleen McIntyre (arrived 3:05) Lillian Riojas Mark Scott ABSENT Priscilla Leal, Vice President President Loeb called the meeting to order in the Council Chambers of City Hall at 3:02 p.m. Secretary Huerta verified that a quorum of the Board was present to conduct the meeting and that notice of the meeting had been posted. President Loeb called for approval of the minutes of the February 25, 2014 meeting. Mr. Garza made a motion to approve the minutes as presented, seconded by Mr. Scott, and passed as follows: Loeb, Allen, Garza, Martinez, Riojas and Scott voting "Aye"; Leal, Magill, and McIntyre absent. President Loeb opened discussion on Item 4, appointment of Paul Pierce as Assistant Secretary for the Corporation. Ms. Martinez made a motion to appoint Paul Pierce, seconded by Mr. Garza, and passed as follows: Loeb, Allen, Garza, Martinez, Riojas and Scott voting "Aye"; Leal, Magill, and McIntyre absent. President Loeb opened discussion on Item 5, adoption of a Resolution changing the fiscal year to a year ending September 30, commencing with the current fiscal year which shall be extended to end on September 30, 2014. There was no discussion on this item. President Loeb called for public comment. There was none. 5. ADOPTION OF A RESOLUTION CHANGING THE FISCAL YEAR TO A YEAR ENDING SEPTEMBER 30 COMMENCING WITH THE CURRENT FISCAL YEAR WHICH SHALL BE EXTENDED TO END ON SEPTEMBER 30, 2014. Mr. Garza made a motion to adopt the resolution, seconded by Ms. Martinez, and passed as follows: Loeb, Allen, Garza, Magill, Martinez, Riojas and Scott voting "Aye"; Leal and McIntyre absent. Minutes — CCHFC April 29, 2014 — Page 2 President Loeb opened discussion on Item 6, approval of a Service Agreement with the City of Corpus Christi for the payment of allocated costs for financial services in handling the funds of the Corporation. Constance Sanchez, Assistant Treasurer, stated the agreement formalizes the actions that the Financial Department and other City Departments are doing for the Corporation. There was no discussion on this item. President Loeb called for public comment. There was none. 6. APPROVAL OF A SERVICE AGREEMENT WITH THE CITY OF CORPUS CHRISTI FOR THE PAYMENT OF ALLOCATED COSTS FOR FINANCIAL SERVICES IN HANDLING THE FUNDS OF THE CORPORATION. Mr. Garza made a motion to approve the service agreement, seconded by Mr. Allen, and passed as follows: Loeb, Allen, Garza, Magill, Martinez, Rioj as and Scott voting "Aye"; Leal and McIntyre absent. President Loeb opened discussion on Item 7, approval of designation of Rebecca Huerta as the registered agent of the Corporation, replacing Armando Chapa; and authorizing the filing of a designation with the Texas Secretary of State. There was no discussion on this item. President Loeb called for public comment. There was none. Mr. Magill made a motion to approve the designation, seconded by Mr. Allen, and passed as follows: Loeb, Allen, Garza, Magill, Martinez, McIntyre, Rioj as and Scott voting "Aye": Leal absent. President Loeb opened discussion on Item 8, consideration and possible approval of a contract for the acquisition of fee simple title to the Ward Building. (This item may be considered in executive session under Section 551.072 of the Texas Open Meetings Act.) Susan Thorpe, Assistant General Manager, stated that a contract agreement had been reached with Grover C. Keeton and Kathleen Keeton Smith, owners and landlords of the Ward Building, for the Corporation to buy out the lease. She stated the Corporation will then own the building outright and be able to dispose of it for an appropriate private use. Mr. Scott asked what the process was after closing on the land. Ms. Thorpe stated that after closing on the land, Assistant City Manager Wes Pierson will prepare an RFP for the highest and best use to put into private hands. Mr. Pierson stated that he is working with the Downtown Management District for proposals for use of the building and land. Mr. Scott asked that the land be disposed of quickly. Mr. Loeb called for public comment. There was none. President Loeb called for a motion on the action for the President to sign the contract and the other necessary documents for acquisition. 8. CONSIDERATION AND POSSIBLE APPROVAL OF A CONTRACT FOR THE ACQUISITION OF FEE SIMPLE TITLE TO THE WARD BUILDING. (THIS ITEM MAY BE CONSIDERED IN EXECUTIVE SESSION UNDER SECTION 551.072 OF THE TEXAS OPEN MEETINGS ACT.) Mr. Scott made a motion to approve the contract, seconded by Ms. Rioj as, and passed as follows: Loeb, Allen, Garza, Magill, Martinez, McIntyre, Rioj as and Scott voting "Aye"; Leal absent. Minutes — CCHFC April 29, 2014 — Page 3 There being no further business to come before the corporation, President Loeb adjourned the meeting at 3:10 p.m. on April 29, 2014. Corpus Christi Housing Finance Corporation Schedule of Net Position January 9, 2015 UNAUDITED Assets Governmental Funds Adjustments Schedule of Net Assets Assets: Current assets Cash in bank $ 63,707 63,707 Receivables Accounts 1,000 1,000 Accrued Interest 5,762 5,762 Due from other funds 446,275 446,275 Total current assets 516,744 - 516,744 Noncurrent assets Capital Assets 158,841 158,841 Building 491,059 491,059 Total noncurrent assets 649,900 649,900 Total assets 516,744 Liabilities and Fund Balance 649,900 1,166, 644 Liabilities: Accounts Payable $ - Deferred revenues 452,037 452,037 Total liabilities $ 452,037 452,037 Fund balance: Undesignated (Restricted) 64,707 (64,707) Total fund balance 64,707 (64,707) 0 Total liabilities and fund balance Net Assets Restricted Invested in Capital Assets Corpus Christi Housing Finance $ 516,744 649,900 649,900 64,707 64,707 Total net assets $ 714,607 $ 714,607 Corpus Christi Housing Finance Corporation Schedule of Activities January 9, 2015 UNAUDITED Revenues: Charges for Services Contributions and donations Interest on interfund loans Total revenue Expenditu res: Corpus Christi Finance Corporation Total expenditures/expenses Excess (deficiency) of revenues over (under) expenditures and other financing uses Other financing sources (uses) Total other financing sources (uses) Net change in fund balance Fund balances (deficits) at beginning of year Governmental Funds 76,751 10,000 24,309 111,060 294,530 Adjustments Schedule of Net Assets 76,751 10,000 24,309 0 111,061 0 294,530 294,530 - 294,530 (183,470) - (183,469) (183,470) 0 (183,470) $ 248,177 649,900 898,077 Fund balances (deficits) at beginning of year 64,707 649,900 714,607 Resolution Authorizing the Execution of Loan Documents with TG 110 Lexington, LP and Wells Fargo Bank, National Association, in connection with a loan in the amount of $1,400,000 to assist in financing the redevelopment of the Lexington Manor Apartments WHEREAS, the Corpus Christi Housing Finance Corporation (the "CCHFC") has been duly created by the City of Corpus Christi and organized pursuant to the provisions of the Texas Housing Finance Corporations Act for the purpose of assisting in the provision of housing options for persons of low and moderate income; and WHEREAS, the CCHFC has established a loan program for projects applying for low-income housing tax credits with the Texas Department of Housing and Community Development ("TDHCA") in which the CCHFC makes loans based on a certificate of deposit or assignment of loan arrangement; and WHEREAS, on February 25, 2014, the CCHFC passed a resolution authorizing the issuance of a loan commitment in an amount not to exceed $2,295,000.00 for a 5 - year loan to TG 110 Lexington, LP at an interest rate of 3% per annum for the redevelopment of the Lexington Manor Apartments in connection with an application for low-income housing tax credits filed with TDHCA; and WHEREAS, TG 110 Lexington, LP has been awarded low-income housing tax credits and has requested a loan in the amount of $1,400,000.00 and has made arrangements with its lender, Wells Fargo Bank, National Association, to loan such funds to the CCHFC to be re -loaned to TG 110 LEXINGTON, LP for the redevelopment of the Lexington Manor Apartments; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CORPUS CHRISTI HOUSING FINANCE CORPORATION THAT: 1. The CCHFC is authorized to borrow from Wells Fargo Bank, National Association the amount of $1,400,000.00 for the redevelopment of the Lexington Manor Apartments in connection with an application for low-income housing tax credits filed with TDHCA. The loan shall be a limited obligation of the CCHFC payable solely from the loan repayments and cash collateral account provided by TG 110 Lexington, LP. Such loan shall bear interest at the rate of 3% per annum, have a term of five years and be repayable in advance without penalty or premium. 2. The CCHFC authorizes a loan to TG 110 Lexington, LP in the amount of $1,400,000.00 to be made from the proceeds of the foregoing loan obtained from Wells Fargo Bank, National Association. Such loan shall bear interest at the rate of 3% per annum, have a term of five years and be repayable in advance without penalty or premium. Said loan shall be secured by a cash collateral account provided by TG 110 Lexington, LP and the funds used for the redevelopment of the Lexington Manor Apartments in connection with an application for low-income housing tax credits filed with TDHCA. 3. Each of the General Manager and the Assistant General Manager are separately authorized in their respective capacities of the CCHFC for purposes of executing, attesting, affixing the Corporation's seal to, and delivering the documents and instruments required in connection with the loan from Wells Fargo Bank, National Association and the loan to TG 110 Lexington, LP referenced above as may be necessary or convenient to carry out or assist in carrying out the purposes of this Resolution and the actions taken previously by such authorized representatives in connection with such matters are hereby ratified and confirmed. The loan documents shall be subject to the approval of either of such officers, and the signature of either of such officers on any such loan document shall be evidence of such approval. DULY PASSED AND ADOPTED this 27th day of January, 2015, at the annual meeting of the Board of Directors. ATTEST: CORPUS CHRISTI HOUSING FINANCE CORPORATION By: By: Rebecca Huerta Name: Secretary Title: President 2 The above resolution was passed by the following vote: Nelda Martinez Rudy Garza, Jr. Chad Magill Colleen McIntyre Lillian Riojas Brian Rosas Lucy Rubio Mark Scott Carolyn Vaughn 3