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HomeMy WebLinkAboutAgenda Packet City Council - 03/21/2017Corpus Christi Meeting Agenda - Final City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, March 21, 2017 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. CITIZEN COMMENTS WILL BE LIMITED TO THREE MINUTES. 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. Any electronic media (e.g. CD, DVD, flash drive) that the Public would like to use while they speak to the City Council MUST be submitted a minimum of 24 hours prior to the meeting. Please contact the Public Communications department at 361-826-3211 to coordinate. 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 Pro Tem Lucy Rubio to call the meeting to order. B. Invocation to be given by Detective Micheal Ilse - Chaplain, Corpus Christi Police Department. C. Pledge of Allegiance to the Flag of the United States to be led by Dan Grimsbo, Interim Executive Director of Utilities. D. City Secretary Rebecca Huerta to call the roll of the required Charter Officers. E. Proclamations / Commendations 1. 17-0371 Proclamation declaring March 22, 2017, "National Small Business Development Center Day". Swearing -In Ceremony for Newly Appointed Municipal Court Judges. F. CITY MANAGER'S COMMENTS / UPDATE ON CITY OPERATIONS: a. OTHER Corpus Christi Page 1 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 G. MINUTES: 2. 17-0369 Regular Meeting of February 28, 2017 and Special Meeting of March 10, 2017. Attachments: Minutes - 02-28-2017 Minutes - 03-10-2017 H. BOARD & COMMITTEE APPOINTMENTS: 3. 17-0370 Building Standards Board Ethics Commission Leadership Committee for Senior Services Planning Commission Attachments: Building Standards Board Ethics Commission Leadership Committee for Senior Services Planning Commission I. 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. J. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. 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 choose to speak during this public comment period regarding an item on the agenda, you may do so. You will not be allowed to speak again, however, when the Council is considering the item. Citizen comments are limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Any electronic media (e.g. CD, DVD, flash drive) that the Public would like to use while they speak MUST be submitted a minimum of 24 hours prior to the Meeting. Please contact the Public Communications department at 361-826-3211 to coordinate. Corpus Christi Page 2 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 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. K. CONSENT AGENDA: (ITEMS 4 - 10) 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. 4. 17-0264 Resolution submitting a grant application to the State for the Justice Assistance Grant (JAG) Program Resolution authorizing the submission of a grant application in the amount of $288,116 to the State of Texas, Criminal Justice Division, for funding eligible under the FY2016 Justice Assistance Grant (JAG) program for law enforcement equipment; and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant. Attachments: Agenda memo JAG application 02.28.2017 Resolution - JAG GRANT 2017 5. 17-0285 Resolution Approving Street Selection Process for Residential Street Rebuild Program (RSRP) (Council Priority - Streets) Resolution approving the concepts, direction and selection criteria for the Residential Street Rebuild Program (RSRP). Attachments: Agenda Memo - Approve Process.docx Resolution - RSRP Guiding Principles v.3.docx Presentation - Bond 2016 Residential Project REV.pptx 6. 17-0207 Construction Contract for Ennis Joslin Road Extension (Holly to Williams) (Bond 2014 Proposition 2) (Council Priority - Streets) Corpus Christi Page 3 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 Motion authorizing the City Manager, or designee, to execute a construction contract with Haas -Anderson Construction, Ltd. of Corpus Christi, Texas in the amount of $4,683,389.20 for Ennis Joslin Road Extension (Holly to Williams) for the total base bid. (BOND 2014 Proposition 2) Attachments: Agenda Memo Ennis Joslin Extension Project Budget Ennis Joslin Location Map Ennis Joslin Extension Presentation - Ennis Joslin Form 1295 Haas Anderson Letter of Recommendation Ennis Joslin ELR CCARS memo 7. 17-0242 Supply Agreement for Sludge Dewatering Polymer for Wastewater Plants Motion authorizing City Manager, or designee, to execute a supply agreement with Polydyne, Inc., of Riceboro, Georgia for the purchase of Sludge Dewatering Polymer ("chemical") in response to Request for Bid No. 991 based on the lowest, responsive, responsible bid for a total amount not to exceed $96,946.20, with an estimated expenditure of $48,473.10 in FY2016-2017 and funded by the Wastewater Fund. The term of the agreement is for one year with an option to extend for up to two additional one-year periods, subject to the sole discretion of the City. Attachments: Agenda Memo - Sludge Dewatering Polymer Bid Tabulation - Sludge Dewatering Polymer.pdf Supply Agreement - Sludge Dewatering Polymer 1295 Form.pdf 8. 17-0219 Second Reading Ordinance - Rezoning property located at 7306 and 7242 South Padre Island Drive (Highway 358) (1st Reading 2/28/17) Case No. 0117-07 Oceanic Development, LTD: A change of zoning from the "RM -1" Multi -family 1 District to the "CG -2" General Commercial District. The property is described as being a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2, located on the north side of South Padre Island Drive (State Highway 358) between Rodd Field Road and Lexington Road. Planning Commission and Staff Recommendation (January 25, 2017): Corpus Christi Page 4 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 Approval of the change of zoning from the "RM -1" Multi -family 1 District to the "CG -2" General Commercial District. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Oceanic Development, LTD. ("Owner"), by changing the UDC Zoning Map in reference to a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2; from the "RM -1" Multi -family 1 Residential District to the "CG -2" General Commercial District; amending Plan CC to account for any deviations; and providing for a repealer clause and publication. Attachments: Agenda Memo - 0117-07 Oceanic Development Ordinance 0117-07 Oceanic Development Zoning Report - 0117-07 Oceanic Development Aerial Maps - 0117-07 Oceanic Development LTD 9. 17-0236 Second Reading Ordinance - Rezoning property located at 3115 South Padre Island Drive (SPID) (State Highway 358) (1st Reading 2/28/17) Case No. 0117-06 Port City Pontiac -GMC, Inc.: A change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District. The property to be rezoned is described as Boulevard Acres Lots E2, G, and F2, located on the south side of South Padre Island Drive (State Highway 358) between Larcade Drive and Kostoryz Road. Planning Commission and Staff Recommendation (January 25, 2017): Denial of the change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District, in lieu thereof approval of the "CG -2" General Commercial District with a Special Permit (SP) with conditions. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Port City Pontiac -GMC, Inc. ("Owner"), by changing the UDC Zoning Map in reference to 5.46 acre tract of land composed of three lots in Boulevard Acres Lots E2, G, and F2 from the "CG -2" General Commercial to the "CG-2/SP" General Commercial District with a Special Permit for all three lots; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. Attachments: Agenda Memo 0117-06 Port City Pontiac -GMC, Inc. Ordinance 0117-06 Special Permit Port City Pontiac -GMC, Inc. with Exhibit Zoning Report 0117-06 Port City Pontiac -GMC, Inc. with Exhibit Aerial Maps 0117-06 Port City Pontiac -GMC, Inc. Corpus Christi Page 5 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 10. 17-0262 Second Reading Ordinance - Urban Transportation Plan Amendment - Realigning a Planned C1 Collector Street System Involving Norchester Drive, Zenith Drive, Evans Road and Acushnet Drive (Council Priority - Streets) (1st Reading 2/28/17) Ordinance amending the Urban Transportation Plan map of Mobility CC, a transportation element of the Comprehensive Plan of the City of Corpus Christi, by realigning a proposed 01 Minor Residential Collector street system proposed south of Saratoga Boulevard from intersecting at Norchester Drive to intersecting at Zenith Drive and connecting with Evans Road to the south and Acushnet Drive to the east; amending related elements of the Comprehensive Plan of the City; providing for severance; and providing for publication. Attachments: Agenda Memo Norchester UTP Amdmt Ordinance UTP Norchester Dr 2-10-2017 Presentation - UTP AMENDMENT NORCHESTER DR 2-10-17 L. RECESS FOR LUNCH The City Council will take a lunch break at approximately 1:30 p.m. M. PUBLIC HEARINGS: (ITEM 11) 11. 17-0319 Public Hearing and First Reading Ordinance - Ordinance adopting the London Area Wastewater Master Plan and the Storm Water Master Plan as elements of the Comprehensive Plan Ordinance adopting the London Area Wastewater Master Plan, an element of the Comprehensive Plan; adopting the London Area Storm Water Master Plan, an element of the Comprehensive Plan; amending related elements of the Comprehensive Plan; providing for severance; and providing for publication. Attachments: Agenda Memo - London Area Utility Master Plans Ordinance - London Utility Master Plans 2017-03-16 Presentation -London Utility Master Plans DM N. REGULAR AGENDA: (ITEMS 12 - 13) The following items are motions, resolutions and ordinances that will be considered and voted on individually. 12. 17-0310 Resolution Authorizing a Disannexation Agreement to Restrict Wind Turbines within the Disannexed Area Resolution authorizing the City Manager or designee to execute a disannexation agreement with Chapman Ranch Wind I, LLC, a Delaware limited liability company, for annexed parts of Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM Corpus Christi Page 6 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 2444, areas south of FM 2444 and west of County Road 41. Attachments: Agenda Memo - Resolution Dissannexation Agreement.docx Resolution - Disannexation Agreement.pdf 13. 17-0311 Second Reading Ordinance - To Remove Previously Annexed Areas in Southside FM 2444 (1st Reading 2/28/17) Ordinance disannexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the previously proposed Apex wind farm from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. Attachments: Agenda Memo - Dissannexation Ordinance.docx Ordinance - Disannexation 2017.pdf Location Map - Southside FM 2444 Disannexation.pdf O. FIRST READING ORDINANCES: (ITEMS 14 - 23) 14. 17-0367 First Reading Ordinance - Amending Code of Ordinances, Chapter 39, Personnel Article III Employment Compensation and Classification System Section 39-303(a) and (e) Ordinance amending the Corpus Christi Code of Ordinances Chapter 39 Personnel Article III Employee Compensation and Classification System Section 39-303 (a) and (e) by eliminating Pay Plan 400 to allow moving the Police Commander and Assistant Chief positions to the Pay Plan 200 repealing conflicting ordinances and rules; providing for effective date and providing for severence. Attachments: Agenda Memo - Ordinance Change for Police - Final 02.10.17 (002) Ordinance - Eliminating 400 Pay Plan 15. 17-0168 First Reading Ordinance - Service Agreement to Manage and Operate the Al Kruse Tennis Center (Tabled 2/14/17) (Tabled 2/21/17) Ordinance authorizing the City Manager or designee to execute a service agreement with TOPS Tennis LLC, Dallas, Texas for Management and Operations Service for Al Kruse Tennis Center for a term of 36 months with up to two additional 12 -month extension option periods; the City will pay the Contractor $3,166.00 per month for an estimated annual total of $38,000.00, and the Contractor will pay the City 5% of all Pro Revenue and 50% of collected City Revenue in return for managing and operating the Al Kruse Tennis Center. Corpus Christi Page 7 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 Attachments: Agenda Memo - Al Kruse Tennis Ctr Manaq Operation Ordinance - Al Kruse Tennis Ctr Manage Operation Service Agreement - Al Kruse Tennis Center Matrix RFP 172 Al Kruse Tennis Center Form 1295 - Al Kruse Tennis Center Management.pdf Informal Staff Report 1-12-17 - Al Kruse Tennis Center Memo 1.12.17 Informal Staff Report 2-8-17 - Al Kruse Tennis Center Solicitation Informal Staff Report 2-28-17 - Al Kruse 16. 17-0360 First Reading Ordinance - Appropriating Funds for Park Improvements Ordinance authorizing the City Manager or designee to execute all documents necessary to appropriate $765,453.93 funds from sale of park properties in the 4720 Community Enrichment Fund for park improvements and other related projects as described on the attached and incorporated Exhibit A. Attachments: Agenda Memo - Appropriation - Park Sale Funds Ordinance - Appropriation - Park Sale Funds Exhibit A - Appropriation - Park Sales Park Sale Map 17. 17-0256 First Reading Ordinance - Closing a Utility Easement Located at 15401 Dyna Street Ordinance abandoning and vacating a 233 -square foot portion of an existing utility easement out of a part of Padre Island- Corpus Christi No. 4, Block 235, Lot 1, located at 15401 Dyna Street and requiring the owner, Hadi Mostaghasi d/b/a H & M Homes, to comply with the specified conditions. Collecting a one-time fee for fair market value of $830.06. Attachments: Agenda Memo -15401 Dyna St Ordinance with Exhibits rev Aerial Maps -15401 Dyna St 18. 17-0288 First Reading Ordinance - Closing a Utility Easement Located at 7185 Lake Placid Ordinance abandoning and vacating an 87.3 -square foot portion of an existing utility easement out of a part of Lake Placid Estates, Block 2, Lot 1, located at 7185 Lake Placid and requiring the owner, George A. Segundo and Estefany Segundo, to comply with the specified conditions. Collecting a one-time fee for fair market value of $102.14. Attachments: Agenda Memo - 7185 Lake Placid Ordinance with Exhibits rev Corpus Christi Page 8 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 Aerial Maps - 7185 Lake Placid 19. 17-0257 First Reading Ordinance - Closing a Utility Easement Located between Stampede Drive and Elizondo Drive Ordinance abandoning and vacating a 0.030 -Acre portion of an existing utility easement out of a part of Flour Bluff and Encinal Farm and Garden Tracts, Section 25, Lot 30 & Rancho Vista Subdivision Unit 7, Block 15, Lots 10 and 23 and requiring the owner, Yorktown Oso Joint Venture, to comply with the specified conditions. Attachments: Agenda Memo - Rancho Vista Subdivision Unit 14 Ordinance with Exhibits - Rancho Vista Subdivision Unit 14 Aerial Maps - Rancho Vista Subdivision Unit 14 20. 17-0344 First Reading Ordinance - Appropriating Funds to Extend Taxiway "K" (Kilo) Construction for the Support of United Coast Guard Operations at Corpus Christi International Airport Ordinance appropriating $622,950 from Federal Aviation Administration Grant No. 3-48-0051-050-2013, Amendment No. 4, in the No. 3020 Airport Capital Improvement Fund for construction of approximately 7,150 square yards of new pavement to expand and extend Taxiway Kilo at the Corpus Christi International Airport and necessary drainage, electrical, lighting and signage improvements, with the 10% match provided from the Airport Capital Reserve Fund; amending the FY2016-2017 Capital Budget by increasing revenues and expenditures by $622,950 each. Attachments: Agenda Memo - FAA Grant No 50 Amendment 4 Ordinance - FAA Grant No 50 Amendment 4 FAA Letter - Grant 50 21. 17-0361 First Reading Ordinance - Authorizing the Issuance of Solid Waste Certificates of Obligation Ordinance authorizing the issuance of "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2017" in an amount not to exceed $2,500,000 for the purpose of financing costs associated with making permanent public improvements to the City's Solid Waste System; providing for the payment of said Certificates by the levy of an ad valorem tax upon all taxable property within the City and further securing said Certificates by a lien on and pledge of the pledged revenues of the Solid Waste System; providing the terms and conditions of said Certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said Certificates, including the approval and distribution of an Official Statement; authorizing the execution of a paying agent/registrar agreement and a Corpus Christi Page 9 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 purchase contract; complying with the requirements of the letter of representations on file with the depository trust company; delegating the authority to certain members of the City staff to execute certain documents relating to the sale of the Certificates; enacting other provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. Attachments: Agenda Memo Authorization for Solid Waste CO's Ordinance - Solid Waste Taxable CO updated 3-9-17 22. 17-0362 First Reading Ordinance - Authorizing the Issuance of Refunding Bonds with the Texas Water Development Board (TWDB) Ordinance authorizing the issuance of "City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2017" in an amount not to exceed $51,300,000; making provisions for the payment and security thereof by a junior and inferior lien on and pledge of the net revenues of the City's Utility System on a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the form, terms, conditions, and resolving other matters incident and related to the issuance, sale, and delivery of the bonds; including the approval of an application to the Texas Water Development Board; authorizing the execution of a paying agent/registrar agreement, and an escrow agreement; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; complying with the regulations promulgated by the Texas Water Development Board; delegating the authority of certain members of the City staff to execute certain documents relating to the sale of the bonds; and providing an effective date. Attachments: Agenda Memo - Texas Water Development Board Refunding Ordinance - TWDB Refunding Updated 3-9-17 23. 17-0175 First Reading Ordinance - Authorizing the Issuance of Refunding Bonds related to Choke Canyon Dam Ordinance authorizing the issuance of "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds", as further designated by series and lien priority of revenue pledge, in an amount not to exceed $77,520,000; making provisions for the payment and security thereof by a lien on and pledge of the net revenues of the City's Utility System which may be on a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the form, terms, conditions, and resolving other matters incident and related to the issuance, sale and delivery of the bonds; including the approval and distribution of an official statement pertaining thereto; Corpus Christi Page 10 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 authorizing the execution of one or more paying agent/registrar agreements, escrow agreements, and a purchase contracts; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; delegating the authority to certain members of the City staff to execute certain documents relating to the sale of the bonds; and providing an effective date. Attachments: Agenda Memo - Choke Canyon Refunding revised Ordinance - Choke Canyon Debt Refunding Updated 3-9-17 P. FUTURE AGENDA ITEMS: (ITEMS 24 - 38) The following items are for Council's informational purposes only. No action will be taken and no public comment will be solicited. 24. 17-0165 Appointment of Financial Advisor for Utility System Revenue Refunding Bonds, Series 2017A Motion authorizing the appointment of and approving the contract for M. E. Allison, & Co., as Financial Advisor for the City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2017A in an amount not to exceed $77,520,000. Attachments: Agenda Memo Financial Advisor for Utility Revenue Refunding Bonds 2017A FA Contract - for Junior Lien Rev Refunding Bonds 2017A 1295 for Junior Lien Rev Refunding Bonds 2017A.pdf 25. 17-0327 Resolution to Authorize Submission of Grant Application for the Local Border Security Program Grant within the Police Department Resolution authorizing the City Manager, or designee, to submit a grant application in the amount of $189,612.88 to the Office of the Governor Homeland Security Grants Division for funding eligible under the FY 2017-18 Local Border Security Program Grant. Attachments: Agenda memo LBSP application 03.21.2017 Resolution - Local Border Security Grant 2017 - Police 26. 17-0290 Public Art for Collier Pool Motion authorizing the City Manager or designee to execute documents necessary to purchase a work of art created in painted steel, by the artist group Monument Fine Art and Sculpture Conservation, in the amount of $17,500 for the Aquatic Facility Upgrades and Improvements - Collier Pool Project to fulfill the public art requirement. (Bond 2012 Proposition 4) Attachments: Agenda Memo - Collier Pool Art Work Artist Agreement - Collier Pool Monument Fine Art LLC Corpus Christi Page 11 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 27. 17-0357 Art Donation Agreement for La Retama Park Motion authorizing the City Manager, or designee, to execute an agreement with Rhodes Urban for the donation and acceptance of a cast aluminum art sculpture known as "Community Column" by Artist, Jack Gron, Art Professor at Texas A&M Corpus Christi, as well as an internationally known artist, honoring the memory of Norma Urban, a member of the Downtown Management Group, to be placed at La Retama Park. Attachments: Agenda Memo - Art Donation - La Retama Park Agreement - Art Donation - La Retama Park Proposed Site Plan - Art Donation - La Retama Park Art Donation - Community Column Specifications 28. 17-0316 Resolution to Authorize Food Program Purchase for Senior Centers and Summer Youth Programs Resolution authorizing the City Manager to execute all documents necessary to purchase up to $191,360.00 in food supplies for the City Senior Center Meals Program through the Coastal Bend Council of Governments (CBCOG) participation in the TEXAS 20 Purchasing Cooperative as organized and administered by the Education Service Center, Region 20; and ratifying the purchase of food supplies for the said program in January -February 2017 through the CBCOG participation in the TEXAS 20 Purchasing Cooperative in the amount of $46,898.11 from Labatt Food Services and $9,352.13 from Hill Country Dairies. Attachments: Agenda Memo - CBCOG Food Program Purchase Resolution - CBCOG Food Program Purchase 29. 17-0302 Rental and Servicing of Portable Toilets for Beach Operations Motion authorizing City Manager, or designee, to execute a service agreement with Progressive Waste Solutions of TX, Inc., dba Skid -o -Kan, of Corpus Christi, Texas for rental and servicing of portable toilets for Beach Operations, in accordance with Request for Bid No. 816, based on the lowest, responsive, responsible bid for a total amount not to exceed $22,600, with an estimated expenditure of $11,300 in FY 2016-2017. The term of this contract will be for 12 months with options to extend for two additional 12 -month periods at the sole discretion of the City. Attachments: Agenda Memo - Rental and Servicing of Portable Toilets Bid Tabulation - Rental and Servicing of Portable Toilets Service Agreement - Rental and Servicing of Portable Toilets Form 1295 Corpus Christi Page 12 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 30. 17-0318 Construction Contract for Ocean Drive Park Improvements - Cole Park (Bond 2012, Proposition 4) Motion authorizing the City Manager, or designee, to execute a construction contract with JE Construction Services of Corpus Christi, Texas in the amount of $725,120 for the Ocean Drive Park Improvements - Cole Park for the base bid and additive alternates 1, 2 and 3 (Bond 2012, Proposition 4). Attachments: Agenda Memo - Ocean Drive Park Imps - Cole Park Project Budget - Ocean Drive Park Imps - Cole Park.xlsx Location Map - Ocean Drive Park Imps - Cole Park.pdf Presentation - Ocean Drive Park Improvements Letter of Recommendation.pdf Form 1295 - JE Construction.pdf 31. 17-0320 Construction Contract for South Alameda Street from Ayers Street to Louisiana Avenue (Bond 2012, Proposition 1) (Council Priority - Streets) Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC Dba Clark Pipeline Services of Corpus Christi, Texas in the amount of $4,996,832.79 for South Alameda Street from Ayers Street to Louisiana Avenue for Base Bid 2. (Bond 2012, Proposition 1) Attachments: Agenda Memo South Alameda Project Budget South Alameda Location Map South Alameda Recommendation Letter Form 1295 Clark Pipeline Informal Staff Report 2-2-17 Asphalt Concrete Presentation South Alameda COF South Alameda Street 32. 17-0321 Construction Contract for Ayers Street from Ocean Drive to Alameda Street (Bond 2014, Proposition 1) (Council Priority - Streets) Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC Dba Clark Pipeline Services of Corpus Christi, Texas in the amount of $6,254,181.88 for Ayers Street from Ocean Drive to Alameda Street for a total Base Bid plus Additive Alternates 1 and 3. (Bond 2014, Proposition 1) Attachments: Agenda Memo Ayers Street Project Budget Avers Street Corpus Christi Page 13 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 Location Map Avers Street Presentation Ayers Street Recommendation Letter Ayers Street Form 1295 Clark Pipeline Informal Staff Report 2-2-17 Asphalt Concrete 33. 17-0322 Construction Contract for City -Wide Water Distribution System Repair and Replacement Indefinite Delivery/ Indefinite Quantity Program (Capital Improvement Program) (Council Priority - Water) Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC dba Clark Pipeline Services, LLP of Corpus Christi, Texas in the amount of $5,100,000 for the City -Wide Water Distribution System Repair and Replacement Indefinite Delivery/Indefinite Quantity (IDIQ) Program for one (1) year base contract with two (2) optional one (1) year extensions to be approved administratively subject to availability of funding and satisfactory contractor performance. Attachments: Agenda Memo - Water IDIQ.docx Protect Budget - Water IDIQ.xls Location Map - Water IDIQ.pdf Presentation - Water IDIQ.pptx Form 1295 - Water IDIQ Letter of Recommendation - Water IDIQ 34. 17-0324 Resolution authorizing Interlocal Agreement for Soil Analysis Resolution authorizing the City Manager or designee to execute an Interlocal Agreement with Texas A & M AgriLife Extension Service for a soil testing program. Attachments: Agenda Memo - Interlocal Agmt for Soil Testing Resolution - TAM AgriLife Soil Testing Program Interlocal Agmt TAM AgriLife Soil Testing Program 2017 FINAL Attach-Stormwater Education and Outreach Plan 35. 17-0300 Supply Agreement for Ferrous Sulfate for Wastewater Plants Motion authorizing City Manager, or designee, to execute a supply agreement with Pencco, Inc., of San Felipe, Texas for the purchase of Ferrous Sulfate ("chemical") in response to Request for Bid No. 1020 based on the lowest, responsive, responsible bid for a total amount not to exceed $290,250.00, with an estimated expenditure of $145,125.00 in FY2016-2017 and funded by the Wastewater Fund. The term of the agreement is for one year with an option to extend for up to four additional one year periods, subject to the sole discretion of the City. Corpus Christi Page 14 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 Attachments: Agenda Memo - Ferrous Sulfate Bid Tabulation - 1020 - Ferrous Sulfate.pdf Ferrous Sulfate Supply Agreement 1295 Form 36. 17-0201 Lease -Purchase of Two Vactor and One Vacall (Body and Chassis) Combination Sewer Trucks for Wastewater Motion authorizing the City Manager, or designee, to lease -purchase two Vactor combination sewer trucks and a Vacall chassis for combination sewer truck (for Vacall body listed below) from Houston Freightliner, of Houston, Texas, based on the cooperative purchasing agreement with Houston -Galveston Area Council, and one Vacall body for a combination sewer truck from Waukesha -Pearce Industries, Inc., of Houston, Texas, based on the cooperative purchasing agreement with Texas Local Government Purchasing Cooperative, dba BuyBoard; for a total amount not to exceed $1,167,613.39, with an estimated expenditure of $77,774.20 in FY2016-2017. Attachments: Agenda Memo - Vactor and Vacall Sewer Trucks Price Sheet - Vactor and Vacall Sewer Trucks Form 1295 - Vactor and Vacall ewer Trucks 37. 17-0346 Purchase of 23 Police Vehicles and Upfitting Equipment for the Police Department Motion approving the purchase of 23 police vehicles from Caldwell Country Ford dba Rockdale Country Ford, from Caldwell, Texas and the upfitting equipment from Cap Fleet Upfitters from Temple, Texas, based on the cooperative purchasing agreement with Texas Local Government Purchasing Cooperative, dba BuyBoard for the total amount not to exceed $1,034,360.16. Funds have been approved for FY2016-2017. Attachments: Agenda Memo - Police Vehicles and Upfitting Price Sheet - Police Vehicles.xlsx Price Sheet - Police Vehicle Upfitting.xlsx 38. 17-0364 Resolution Amending Council Policies Resolution amending City Council Policy Section 16 to reduce the number of City Council Members required to place an item on the agenda or to call a special or workshop meeting from at least five members to four members. Attachments: Agenda Memo - Council Policies Add Item to Agenda 2017-03-21 Resolution - City Council Policy 16 Amendment REVISED Q. BRIEFINGS: (ITEMS 39 - 41) Corpus Christi Page 15 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 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. 39. 17-0374 Process for City Charter Review Attachments: Agenda Memo - Process for City Charter Review Draft Election Information for Nov 2016 General Election (002) 40. 17-0363 Overview of Animal Care Services Attachments: Agenda Memo - Animal Care 03.21.2017 Presentation - Animal Care March 21 revised 41. 17-0375 Manufactured Housing for Affordable Infill Development Attachments: Agenda Memo Mobile Homes Manufactured Housing, Andy Taubman Manufactured Housing, Staff Presentation Report by Andy Taubman R. LEGISLATIVE UPDATE: (NONE) 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. EXECUTIVE SESSION: (ITEMS 42 - 44) 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. If 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. The City Council may deliberate and take action in open session on any issue that may be discussed in executive session. The description of an item in "Executive Sessions" constitutes the written interpretation by the City Attorney of Chapter 551 of the Texas Government Code and his determination that said item may be legally discussed in Closed Meeting in compliance with Chapter 551 the Texas Government Code. 42. 17-0353 Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning confidential legal issues related to the interruption of water service, Rules of the Texas Commission on Environmental Quality and U.S. Environmental Protection Agency, the U.S. Clean Water Act, federal, state and local regulations and laws related to the interruption of water service, negotiations with the U.S. Environmental Protection Agency concerning the City's sanitary sewer system, and professional services agreements related to the provision of engineering, legal, and other services related to negotiation and potential litigation with agencies involved in the regulation of water and sewer service. Corpus Christi Page 16 Printed on 3/20/2017 City Council Meeting Agenda - Final March 21, 2017 43. 17-0354 Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to the TxDOT Harbor Bridge Project and pursuant to Texas Gov't Code § 551.072 to deliberate the purchase, exchange, lease, or value of real property (including, but not limited to,TC Ayers Pool, TC Ayers Park and other property in vicinity of existing or proposed Harbor Bridge, said pool, and said park) because deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person. 44. 17-0355 Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to annexation, deannexation, provision of utility services in annexed areas, municipal authority in the City's extraterritorial jurisdiction, wind turbines, agreements related to aforementioned items, and other legal matters related to the aforementioned matters in areas annexed by the City in 2014. T. ADJOURNMENT Corpus Christi Page 17 Printed on 3/20/2017 Corpus Christi Meeting Minutes City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, February 28, 2017 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. CITIZEN COMMENTS WILL BE LIMITED TO THREE MINUTES. 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. Any electronic media (e.g. CD, DVD, flash drive) that the Public would like to use while they speak to the City Council MUST be submitted a minimum of 24 hours prior to the meeting. Please contact the Public Communications department at 361-826-3211 to coordinate. A. Mayor Pro Tem Carolyn Vaughn to call the meeting to order. Mayor Pro Tem Carolyn Vaughn called the meeting to order at 11:31 a.m. B. Invocation to be given by Mr. Chuck Goodwin, Fish for Life Minstries. Mr. Chuck Goodwin gave the invocation. C. Pledge of Allegiance to the Flag of the United States to be led by Madeleine Gonzalez, Tuloso - Midway High School Senior Class President and Cheer Captain. Ms. Madeleine Gonzalez led the Pledge of Allegiance. D. City Secretary Rebecca Huerta to call the roll of the required Charter Officers. City Secretary Rebecca Huerta called the roll and verified that a quorum of the City Council and the required Charter Officers were present to conduct the meeting. City Manager Margie C. Rose, City Attorney Miles K. Risley and City Secretary Rebecca Huerta. Present: 8 - Council Member Rudy Garza,Council Member Paulette Guajardo,Council Member Michael Hunter,Council Member Joe McComb,Council Member Ben Molina,Council Member Lucy Rubio,Council Member Greg Smith, and Council Member Carolyn Vaughn Corpus Christi Page 1 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 E. Proclamations / Commendations 1. Proclamation declaring March 1, 2017 "Southwest Airlines 40th Anniversary at Corpus Christi International Airport". Proclamation declaring March 5-11, 2017 "Women in Construction Week" Council Chambers. Proclamation declaring March 10th, 17th and 24th as "Fill -the -boot For The Muscular Dystrophy Association". Commendation recognizing the Arlington Heights Christian Boys High School Six -man Football Team as State Champions. Swearing -In Ceremony for Newly Appointed Board, Commission and Committee Members. Mayor Pro Tem Vaughn presented the proclamations and a Certificate of Commendation and conducted the swearing-in ceremony for newly appointed board and committee members. J. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. 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 choose to speak during this public comment period regarding an item on the agenda, you may do so. You will not be allowed to speak again, however, when the Council is considering the item. Citizen comments are limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Any electronic media (e.g. CD, DVD, flash drive) that the Public would like to use while they speak MUST be submitted a minimum of 24 hours prior to the Meeting. Please contact the Public Communications department at 361-826-3211 to coordinate. Mayor Pro Tem Vaughn referred to comments from the public. Chris Phelan, 3806 Kingston and on behalf of For the Greater Good, spoke regarding the following topics: the recent water situations; refinancing of Mary Rhodes Pipeline Phase ll; the formula used to set water rates for industrial customers; and resources to plan for the Zika Virus. Isabel Araiza, 326 Poenish and on behalf of For the Greater Good and the Water Coalition, spoke regarding the following topics: the Water Coalition is organizing a water forum for the mayoral candidates on March 23, 2017 and extended an invitation to City Council; and the water rates for large volume users. Michelle McDaniel, 5301 Crossridge, spoke regarding Agenda Item 20, a proposed affordable housing project known as The Avanti Bayside, and requested that the vote be tabled to allow the neighborhood an opportunity to receive information on the project and conduct research on the development. Johnny French, 4417 Carlton, spoke regarding the following topics: the transferring of funds from existing bond projects to fund other projects; the Packery Channel six pack projects; and placing a proposition on the ballot to fund Park Road 22. Robert Pinkstaff, 4509 Grand Lake Drive, spoke regarding the agenda items related to proposed affordable housing developments and the impact those projects could have to housing values and infrastructure. John Helm, 8030 Villefranche, spoke regarding Agenda Items 25 and 30, related to disannexation and wind turbines, Corpus Christi Page 2 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 and requested that the City review the contract terms before disannexing located areas south of FM 2444. Richard Troop, 14202 Encantada, provided statistics regarding housing values and prices in Corpus Christi. Joan Veith, 5701 Cain, thanked City Manager Rose for holding the "Conversations with the City Manager" forums and spoke regarding citizens comments at the forum related to Code Enforcement and response times by the Corpus Christi Police Department. Clark Colvin, Executive Vice President of The ITEX Group, spoke regarding Agenda Item 21, an affordable housing development called Sea Gulf Villa Apartments, and the Texas Department of Housing and Community Affairs' tax credit program and requested that the City Council consider the project. Gloria Scott, 4422 S. Alameda, asked questions regarding the procedures for public comment on consent agenda items. Edalio Salinas, 7026 Ridge Stone, spoke regarding Agenda Items 20 and 22, proposed affordable housing developments, and expressed concerns regarding the impact the projects will have on schools and neighborhoods in the area. Linda Gibeaut, 410 Southern, spoke regarding the following issues related Corpus Christi Animal Care Services: Animal Care being a kill shelter; addressing the three-day stray hold; the use of temporary workers at the facility; and the need for an additional veterinarian. Christina Cacey, 7050 Clubgate, spoke regarding the agenda items related to affordable housing developments and expressed concerns with overcrowding in schools and student -to -teacher ratios. F. CITY MANAGER'S COMMENTS / UPDATE ON CITY OPERATIONS: Mayor Pro Tem Vaughn referred to City Manager's Comments. City Manager Margie C. Rose reported on the following topics: a. OTHER 1) The Storm Water Department maintains a Texas Commission on Environmental Quality (TCEQ) permit for the City's storm water system which includes discharge, maintenance, operations, environmental programs and education. Recently, TCEQ conducted a three-day audit to ensure compliance with all necessary regulations and permit requirements. City Manager Rose announced that there were no violations and the City is in full compliance with TCEQ regulations for the Municipal Storm Water System. 2) Liza Wisner, Human Resources Learning and Development Manager, was invited to be a speaker at the Annual World Class Workforce Experience 2017 Conference. Ms. Wisner will be discussing transforming employees' jobs and citizens lives through sharing tools, providing recognition, and promoting community engagement. 3) The Police Department's K-9 Unit recently took part in the annual training competition in Hildago County. Senior Officer Jason Lavastida and his K-9 partner Indy placed third in the Patrol Division and second in the Obedience Division. Indy won the award for Top Dog Champion for the Patrol and Detection Division and received a ballistic vest worth approximately $1,500. Senior Officer Bernie Moss and his K-9 partner Vingo won third place in the Fastest Dog Race. City Manager Rose introduced the department's first female K-9 officer, Senior Officer Josie Ressler. G. MINUTES: 2. Regular Meeting of February 21, 2017 Corpus Christi Page 3 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Mayor Pro Tem Vaughn referred to approval of the minutes. Council Member Rubio made a motion to approve the minutes, seconded by Council Member Molina and passed unanimously. H. BOARD & COMMITTEE APPOINTMENTS: I. EXPLANATION OF COUNCIL ACTION: K. CONSENT AGENDA: (ITEMS 3 - 14) Approval of the Consent Agenda Mayor Pro Tem Vaughn referred to the Consent Agenda. City Secretary Rebecca Huerta announced that Council Member Molina would be abstaining from the vote on Item 5. A citizen requested information on Item 14. Council members requested that Items 3 and 6 be pulled for individual consideration. Mayor Pro Tem Vaughn referred to Item 14, one-way traffic flow along Booty Street. Gloria Scott, 4422 S. Alameda, asked questions and expressed concerns from an office and doctor's clinic on Booty Street regarding the impact one-way traffic flow will have on property taxes and access to the clinic. A motion was made by Council Member Garza, seconded by Council Member Hunter, to approve the Consent Agenda. The consent agenda items were passed and approved by one vote as follows: Aye: 7 - Council Member Garza, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Absent: 1 - Council Member Guajardo Abstained: 0 4. Supply Agreement for the Purchase of Meter Transmission Units for Water Utilities and Gas Department (Council Priority - Water) Motion authorizing City Manager, or designee, to execute a supply agreement with Aclara Technologies LLC, of Hazelwood, Missouri for the purchase of meter transmission units (MTUs), based on the cooperative purchasing agreement with the Houston -Galveston Area Council for a total amount not to exceed $1,079,680.00, with an estimated expenditure of $629,813.33 in FY2016-17. The term of the agreement is a term of 12 months, with an option to extend for up to one additional 12 -month period, subject to the sole discretion of the City. This Motion was passed on the consent agenda. Enactment No: M2017-033 Corpus Christi Page 4 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 5. Construction Contract for Taxiway "K" (Kilo) Extension for Coast Guard Operations at Corpus Christi International Airport Motion authorizing the City Manager, or designee, to execute a construction contract with SpewGlass Civil Construction, Inc. of Houston, Texas in the amount of $2,203,523.71 for the Corpus Christi International Airport (CCIA) Taxiway "K" (Kilo) Extension for Base Bid I (Concrete Option). This Motion was passed and approved with the following vote: Aye: 6 - Council Member Garza, Council Member Hunter, Council Member McComb, Council Member Rubio, Council Member Smith and Council Member Vaughn Absent: 1 - Council Member Guajardo Abstained: 1 - Council Member Molina Enactment No: M2017-034 7. Establish Waste Acceptance Contract with Mark Dunning Industries, Inc. Motion authorizing the City Manager or designee to execute an 11 -year contract with Mark Dunning Industries, Inc., guaranteeing the delivery of specific tonnage of acceptable waste collected within the boundaries of the Coastal Bend Council of Governments' region to the City's Cefe Valenzuela Municipal Landfill, and ratifying the start date of the contract to be November 12, 2016. This Motion was passed on the consent agenda. Enactment No: M2017-036 8. Second Reading Ordinance - Rezoning property located at 7564 Brooke Road (1st Reading 2/21/17) Case No. 0117-04 Palm Land Investment: A change of zoning from the "RS -4.5" Single Family Residential District to the "RS-TH" Residential Townhouse District. The property to be rezoned is described as a 5.824 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 26, Lots 10 and 11, located on the west side of Oso Parkway and south of Dove Hollow Drive. Planning Commission and Staff Recommendation (January 11, 2017): Approval of the change of zoning from the "RS -4.5" Single Family Residential District to the "RS-TH" Residential Townhouse District. Corpus Christi Page 5 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Palm Land Investment ("Owner"), by changing the UDC Zoning Map in reference to 5.824 acre tract of land of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 26, Lots 10 and 11, from the "RS -4.5" Single Family Residential District to the "RS-TH" Residential Townhouse District; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031074 9. Second Reading Ordinance - Rezoning property located at 4343 Ocean Dr (1st Reading 2/21/17) Case No. 0117-02 Carriage Management, Inc.: A change of zoning from the "RM -AT" Multi -Family Apartment Tourist District to the "RS-10/SP" Single -Family 10 District with a Special Permit. The property is described as being 2.24 -acres out of Seaside Subdivision and Riviera Condo, Block 1, Lot 6B, located along the south side of Ocean Drive between Robert Drive and Airline Road. Planning Commission and Staff Recommendation (January 11, 2017): Approval of the change of zoning from the "RM -AT" Multi -Family Apartment Tourist District to the "RS-10/SP" Single -Family 10 District with a Special Permit. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by CLA Realtors for Carriage Management, Inc. ("Owner"), by changing the UDC Zoning Map in reference to a 2.24 -acre tract of land out , Seaside Subdivision and Riviera Condo, Block 1, Lot 6B, from the "RM -AT" Multi -Family Apartment Tourist District to the "RS-10/SP" Single -Family 10 District with a Special Permit; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031075 10. Second Reading Ordinance - Rezoning property located at 4401 Ocean Dr (1st Reading 2/21/17) Case No. 0117-03 Carriage Management, Inc.: A change of zoning from the "RM -AT" Multi -Family Apartment Tourist District to the "RS-10/SP" Single -Family 10 District with a Special Permit. The Corpus Christi Page 6 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 property is described as being 3.09 acres out of Seaside Subdivision, Block 2, Lots 1 and 2, located along the south side of Ocean Drive between Robert Drive and Airline Road. Planning Commission and Staff Recommendation (January 11, 2017): Approval of the change of zoning from the "RM -AT" Multi -Family Apartment Tourist District to the "RS-10/SP" Single -Family 10 District with a Special Permit. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by CLA Realtors for Carriage Management, Inc. ("Owner"), by changing the UDC Zoning Map in reference to a 3.09 -acre tract of land out , Seaside Subdivision, Block 2, Lots 1 and 2, from the "RM -AT" Multi -Family Apartment Tourist District to the "RS-10/SP" Single- Family 10 District with a Special Permit; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031076 11. Second Reading Ordinance - Appropriating Funds for Repairs to the Violet Radio Transmission Tower (1st Reading 2/21/17) 12. Ordinance appropriating $12,075.64 from the Radio System Capital Replacement Reserve Fund to pay for repairs to transmission lines at the Violet radio transmitter site which serves the City, County, and RTA radio systems; amending the FY16-17 budget adopted by Ordinance No. 030965 to increase expenditures by $12,075.64. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031077 Second Reading Ordinance - Accepting and Appropriating the High Intensity Drug Trafficking Area (HIDTA) Grant Award for the Police Department (1st Reading 2/21/17) Ordinance authorizing the City Manager or designee to execute all documents necessary to accept a grant award in the amount of $170,815 from the Executive Office of the President, Office of National Drug Control Policy, to support the Police Department's role in the Texas Coastal Corridor Initiative in the Houston High Intensity Drug Trafficking Area (HIDTA) for the salary and benefits of a full-time program coordinator, one administrative assistant, overtime for 4 Corpus Christi Police Officers, and 4 lease vehicles; and appropriating the $170,815 in the No. 1061 Police Grants Fund. Corpus Christi Page 7 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 13. 14. 3. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031078 Second Reading Ordinance - Closing a Utility Easement Located at 5921 Saratoga Boulevard (1st Reading 2/21/17) (Council Priority - Economic Development) Ordinance closing, abandoning, and vacating a 0.071 -Acre portion of an existing utility easement out of a part of Lot 1A, Block 1 of Saratoga Heights Subdivision, located at 5921 Saratoga Blvd. and requiring the owner, PlainsCapital Bank, to comply with the specified conditions. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031079 Second Reading Ordinance - Creating One -Way Traffic Flow Along Booty Street (Bond 2014, Proposition 1) (1st Reading 2/21/17) (Council Priority - Streets) Ordinance amending the Code of Ordinances, Chapter 53, Section 53-250 Schedule 1 - One Way Streets and Alleys by changing designated portions of Booty Street from a two-way traffic pattern to a one-way traffic pattern and Schedule 111 - Parking prohibited at all times on certain streets by adding Booty Street; providing for severance; and providing for publication. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031080 Engineering Contract Amendment No. 2 for On -Call Technical Services Related to Water Supply Planning (Council Priority - Water) Motion authorizing the City Manager, or designee, to execute Amendment No. 2 with HDR Engineering, Inc. of Corpus Christi, Texas in the amount of $31,700, for a total restated fee of $81,600, for the On -Call Technical Services Related to Water Supply Planning. Mayor Pro Tem Vaughn referred to Item 3, on-call technical services related to water supply planning. Director of Engineering Services Jeff Edmonds and Water Resources Manager Steve Ramos responded to the following council member discussions: previous presentations provided by HDR Engineering related to the water supply; the original contract and Amendment No. 1 with HDR Engineering; the reason for Amendment No. 2 to the contract; and the scope of work for Amendment No. 2. Corpus Christi Page 8 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Council Member Rubio made a motion to approve the motion. The motion failed for lack of second. City Manager Rose requested that City Council continue the dialogue on this item to allow staff to clarify council member's concerns. Council members and staff discussed the following topics: the City currently not being in a drought contingency; recommendations from the new Water Director; whether there is a negative impact if the contract is not approved; the Water Contingency Plan; managing the water supply versus water demand; water supply increased by conservation efforts; the components of the on-call technical services; request for a copy of the request for proposal (RFP) for this contract; consideration to possibly table this item; the consultant being able to assist the City with applying for SWIFT Funds; the scope of the water management strategy; operation of Lake Corpus Christi and Choke Canyon water releases; the Texas Water Development Board's refinancing of Mary Rhodes Pipeline Phase ll; the agreed order for Choke Canyon; asking for forgiveness from the Bureau of Reclamation for releases from Choke Canyon; encouraging citizens to use water; and the daily consumption of water. Council Member Molina made a motion to table Item 3, seconded by Council Member Garza. This Motion was tabled with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 6. Lease -Purchase of One 2018 Freightliner M2-112 Service Truck for the Wastewater Department Motion authorizing the City Manager, or designee, to lease -purchase one 2018 Freightliner M2-112 service truck from Houston Freightliner, of Houston, Texas, based on the cooperative purchasing agreement with Houston -Galveston Area Council for a total amount not to exceed $202,497.38, with an estimated expenditure of $20,199.72 in FY 2016-2017. Mayor Pro Tem Vaughn referred to Item 6, lease -purchase of one 2018 Freightliner M2-112 Service Truck. Director of Fleet Maintenance Jim Davis and council members discussed the following topics: whether all fleet purchases are coordinated with the Finance Department; interest rate for lease payments; concern that the recent lease -purchases were not budgeted; and the vehicles being replacements to the fleet. Council Member Smith made a motion to approve the motion, seconded by Council Member Molina. This Motion was passed and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 Enactment No: M2017-035 Corpus Christi Page 9 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 M. PUBLIC HEARINGS: (ITEMS 15 - 17) 15. Public Hearing and First Reading Ordinance - Rezoning property located at 7306 and 7242 South Padre Island Drive (Highway 358). Case No. 0117-07 Oceanic Development, LTD: A change of zoning from the "RM -1" Multi -family 1 District to the "CG -2" General Commercial District. The property is described as being a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2, located on the north side of South Padre Island Drive (State Highway 358) between Rodd Field Road and Lexington Road. Planning Commission and Staff Recommendation (January 25, 2017): Approval of the change of zoning from the "RM -1" Multi -family 1 District to the "CG -2" General Commercial District. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Oceanic Development, LTD. ("Owner"), by changing the UDC Zoning Map in reference to a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2; from the "RM -1" Multi -family 1 Residential District to the "CG -2" General Commercial District; amending Plan CC to account for any deviations; and providing for a repealer clause and publication. Mayor Pro Tem Vaughn referred to Item 15. Interim Director of Development Services Julio Dimas stated that the purpose of this item is to rezone the subject property to allow for development of a Carmax Auto Superstore. Mr. Dimas stated that the Planning Commission and staff are in favor of the zoning change. Mayor Pro Tem Vaughn opened the public hearing. There were no comments from the Council or the public. Mayor Pro Tem Vaughn closed the public hearing. Council Member Molina made a motion to approve the ordinance, seconded by Council Member Hunter. This Ordinance was passed on first reading and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 16. Public Hearing and First Reading Ordinance - Rezoning property located at 3115 South Padre Island Drive (SPID) (State Highway Corpus Christi Page 10 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 17. 358) Case No. 0117-06 Port City Pontiac -GMC, Inc.: A change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District. The property to be rezoned is described as Boulevard Acres Lots E2, G, and F2, located on the south side of South Padre Island Drive (State Highway 358) between Larcade Drive and Kostoryz Road. Planning Commission and Staff Recommendation (January 25, 2017): Denial of the change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District, in lieu thereof approval of the "CG -2" General Commercial District with a Special Permit (SP) with conditions. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Port City Pontiac -GMC, Inc. ("Owner"), by changing the UDC Zoning Map in reference to 5.46 acre tract of land composed of three lots in Boulevard Acres Lots E2, G, and F2 from the "CG -2" General Commercial to the "CG-2/SP" General Commercial District with a Special Permit for all three lots; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. Mayor Pro Tem Vaughn referred to Item 16. Interim Director of Development Services Julio Dimas stated that the purpose of this item is to rezone the subject property to allow a vehicle sales dealership with an ancillary vehicle repair facility, including a paint and body shop, subject to ten conditions. Mr. Dimas stated that the Planning Commission and staff are in favor of the zoning change. Mayor Pro Tem Vaughn opened the public hearing. There were no comments from the public. Mayor Pro Tem Vaughn closed the public hearing. In response to a council member, Mr. Dimas stated that construction work currently being performed to the building could be independent from the zoning change or to prepare the building should the rezoning be approved. Council Member Rubio made a motion to approve the ordinance, seconded by Council Member Molina. This Ordinance was passed on first reading and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 Public Hearing and First Reading Ordinance - Urban Transportation Plan Amendment - Realigning a Planned C1 Collector Street System Involving Norchester Drive, Zenith Drive, Corpus Christi Page 11 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Evans Road and Acushnet Drive (Council Priority - Streets) Ordinance amending the Urban Transportation Plan map of Mobility CC, a transportation element of the Comprehensive Plan of the City of Corpus Christi, by realigning a proposed 01 Minor Residential Collector street system proposed south of Saratoga Boulevard from intersecting at Norchester Drive to intersecting at Zenith Drive and connecting with Evans Road to the south and Acushnet Drive to the east; amending related elements of the Comprehensive Plan of the City; providing for severance; and providing for publication. Mayor Pro Tem Vaughn referred to Item 17. Interim Director of Development Services Julio Dimas stated that the purpose of this item is to amend the Urban Transportation Plan map of Mobility CC, to realign a proposed C1 Minor Residential Collector street system proposed south of Saratoga Boulevard intersecting Norchester Drive at the intersection of Zenith Drive to accommodate a proposed development. Mr. Dimas presented the following information: a map of the subject property; the current plan; the proposed map amendment; a comparison of the current and proposed plan; and the preliminary plat. Mr. Dimas stated that staff, the Transportation Advisory Committee and Planning Commission recommend deleting the segment of the proposed C1 Collector along the west property line aligned with Norchester Drive and the using the extension of Zenith Drive to the west to connect with Acushnet Drive. Mayor Pro Tem Vaughn opened the public hearing. There were no comments from the public. Mayor Pro Tem Vaughn closed the public hearing. In response to a council member, Mr. Dimas responded that Zenith Drive will open all the way to the south to Acushnet Drive. Council Member Rubio made a motion to approve the ordinance, seconded by Council Member Guajardo. This Ordinance was passed on first reading and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 L. RECESS FOR LUNCH Mayor Pro Tem recessed the Council meeting at 1:28 p.m. Mayor Pro Tem Vaughn reconvened the Council meeting at 2:01 p.m. REGULAR AGENDA: (ITEM 18) 18. Second Reading Ordinance - Calling a Special Election to be held on May 6, 2017 for the Election of Mayor (1st Reading 2/21/17) Ordinance ordering a special election to be held on May 6, 2017 in the Corpus Christi Page 12 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 City of Corpus Christi for the election of Mayor to fill remainder of the unexpired term; authorizing a runoff election, if one is necessary, on June 24, 2017; providing for procedures for holding such election; authorizing a joint election agreement with Nueces County; and enacting provisions incident and relating to the subject and purpose of this ordinance. Mayor Pro Tem Vaughn referred to Item 18, an ordinance calling for a special election on May 6, 2017. City Secretary Huerta stated that the Joint Election agreement was received from Nueces County and will need to be added to the ordinance as Exhibit D. Additional amendments include: amending Section 9 to reflect that Nueces County Clerk Kara Sands will be appointed Manager of the Central Counting Station and adding Section 16 regarding the filing period for application for a place on the ballot. Mayor Pro Tem Vaughn stated that she has received several emails regarding the election; eligibility of candidates; and the opinion provided to the City Council by Charles Zech regarding Mark Scott. Mayor Pro Tem Vaughn introduced Jon Mureen. Mr. Mureen stated that he was representing Carolyn Vaughn and was asked to review the legal opinion by Mr. Zech regarding term limits. At this point, Council Member McComb recused himself from the discussion and action on this item. Mr. Mureen presented the following information: a background of Mark Scott's terms as a council member, his resignation, the opinion provided by Mr. Zech, and the City Council's reprimend of Mr. Scott for circumventing the intent of the voters; a definition of term; the City Council's role related to the City Charter; various factors to consider when interpreting statutes; an assessment that Mr. Scott served four terms; the intent of the voters regarding the two-year term; and Charter provisions. Mr. Mureen concluded his presentation by stating that Mark Scott served four two-year terms; this triggered the term limit provision; and his resignation in September 2016 does not avoid term limits. Mayor Pro Tem Vaughn called for comments from the public. Laura Ballew, 10730 Atlanta; Sam Dalton, 8002 Villafranche; Bill Word, 6018 Pinehurst; Bob White, 4502 Congressional; and Rick Milby, 4412 High Ridge Drive; spoke regarding the intent of the voters regarding term limits and Mark Scott being ineligbile to run for the position of Mayor. City Secretary Huerta provided an overview regarding the authority that determines candidate eligibility, Texas Election Code Section 145.003. Council members spoke regarding the following topics: the agenda item not listing the presentation by Mr. Mureen; respect for due process and hearing both sides of the issues; the first and second opinions from Mr. Zech; the reprimand given to Mr. Scott and City Council's intent; the City Council being judges of the election; the intent of the Charter Commission; the term limits for former Council Members John Marez and Priscilla Leal; and clarification on the four consecutive two-year terms. MOTION OF DIRECTION Mayor Pro Tem Vaughn made a motion directing the City Secretary to administratively declare the ineligibility of Mark Scott should he file to run for Mayor or City Council until, as stated in the City Charter, three consecutive Corpus Christi Page 13 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 terms of office for the council have expired, seconded by Council Member Rubio. The motion of direction was passed and approved with the following vote: Council Members Vaughn; Guajardo, Hunter; Molina; Rubio; and Garza voting "Aye"; Council Member Smith voting "No"; Council Member McComb abstained. Council Member Garza made a motion to amend the ordinance to include the Joint Election Agreement; amend Section 9 to reflect that Nueces County Clerk Kara Sands will be appointed Manager of the Central Counting Station and add Section 16 regarding the filing period for application for place on the ballot, seconded by Council Member Molina and pased unanimously; McComb abstained. Council Member Rubio made a motion to approve the ordinance as amended, seconded by Council Member Molina. This Ordinance was passed on second reading as amended and approved with the following vote: Aye: 7 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 1 - Council Member McComb Enactment No: 031081 BRIEFINGS: (ITEM 32) 32. Discussion - Car Ports Mayor Pro Tem Vaughn deviated from the agenda and referred to Item 32. Interim Director of Development Services Julio Dimas stated that the purpose of this item is to discuss carports. Mr. Dimas provided an overview of options for new carports: creation of a Special Use Exception to allow carports in the street yard and creation of standards for review of proposed carports. Mr. Dimas presented the proposed criteria for existing carports including: existing carports would be exempt from front street yard requirements; carports would have to be self -registered by current owners, with owners providing drawings and dimensions, photographs identifying the carport, proof of windstorm compliance; and a grace period of 12 months. After the grace period, all existing, non -registered carports are subject to Code Enforcement violations. Council members and staff discussed the following topics: wind storm compliance; whether the City would accept a manufacturer's certification on existing structures as proof of windstorm compliance; installation of structures being a key component of windstorm compliance; providing a list of wind storm engineers to residents with non -conforming carports that were built without proper inspection; options for existing carports to be modified to meet windstorm requirements; and the grace period. MOTION OF DIRECTION Council Member Molina made a motion directing the City Manager to move forward with the recommendations as presented, seconded by Council Member Rubio and passed unanimously (Hunter - absent). Corpus Christi Page 14 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 N. REGULAR AGENDA: (ITEMS 19 - 24) 19. Service Agreement for Cost Allocation Plans and User Fee Study Motion authorizing the City Manager or designee to execute a service agreement with MGT of America Consulting, LLC, of Austin, Texas for cost allocation plans and a user fee study for a total amount not to exceed $101,630, of which $74,280.00 will be paid in Fiscal Year 2016-2017. The term of the agreement is for 36 months with up to two additional 12 -month extension option periods, subject to the sole discretion of the City. Mayor Pro Tem Vaughn deviated from the agenda and referred to Item 19. Assistant Director of Strategic Management Saundra Thaxton stated that the purpose of this item is to establish a service agreement to prepare cost allocation plans, as required by state and federal law, and a User Fee Analysis to identify the true costs of providing services. Ms. Thaxton presented the following information: the four criteria that a user fee must meet; examples of user fee services, including revenues and expenditures; the definition of indirect costs; the legal implications when developing fees; user fee study benefits; and a list of the General Fund departments that will be included in the comprehensive cost analysis including: Fire, Emergency Medical Services (EMS), Libraries, Police, Animal Care, Code Enforcement, and Parks and Recreation. Ms. Thaxton stated that a professional fee analysis will help the City make better financial and budgetary decisions, enables discussion on setting appropriate fees versus tax subsidies, provides a better legal framework for setting the annual adoption of fees, and provides a sound legally defensible basis for the City's fees. There were no comments from the public. Council members and staff discussed the following topics: review of the full cost allocation plan and fee analysis; and the ability to have in-house expertise and make it an on-going program. Council Member Garza made a motion to approve the motion, seconded by Council Member Molina. This Motion was passed and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 Enactment No: M2017-037 20. Resolution in support of an Affordable Housing development to satisfy the requirement set forth by the Texas Department of Housing and Community Affairs (TDHCA) (Council Priority - Economic Development) Corpus Christi Page 15 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed affordable housing project known as The Avanti Bayside to be developed by MDS Housing Lipes, Ltd. Mayor Pro Tem Vaughn referred to Item 20. Director of Housing and Community Development Rudy Bentancourt stated that Items 20 through 23 are resolutions of support for housing tax credits which are administered through the Texas Department of Housing and Community Affairs. The proposed developments compete through a competitive process, through which points are generated for their application to the state. Receiving a resolution of support from Corpus Christi's governing body is a point factor in the developer's overall score. The developments include: The Avanti Bayside; Sea Gulf Villa; Village at Henderson; and Samuel Place Apartments. Mr. Bentancourt presented an overview of each project and examples of photos of other developments from each developer. Mayor Pro Tem Vaughn called for comments from the public on Item 20. Henry Flores, representing Avanti Bayside, provided information on the proposed development and requested support for the project. Council members discussed the following topics: the construction that is occurring near Lipes Boulevard and Rivergate Drive; the two proposed developments on Lipes Boulevard; the public not being notified because the subject properties are already zoned for this allowable use; the process lacking transparency; the need to develop a process to address affordable housing projects, locations for projects, and notification to the public; the number of affordable housing projects already built in District 5; whether crime statistics have increased in the Calallen/Tuloso-Midway area where a recent affordable housing project was built; the points generated by the resolution of support; and the legal issues and ramifications if the Council does not provide support. Mayor Pro Tem Vaughn called for an executive session on Item 20 pursuant to Texas Government Code Section 551.071. The Council went into executive session at 4:13 p.m. The Council returned from executive session at 4:36 p.m. Council members discussed the following topics: tax credit projects offering an opportunity to providing affordable housing for familites; the misconception on tax credit complexes; the need for affordable housing; the amentities provided in affordable housing projects; the point system; and Items 23 and 24 regarding the City Central Corridor Community Revitalization Plan. Council Member Garza made a motion to approve the resolution, seconded by Council Member Molina. This Resolution was passed and approved with the following vote: Aye: 7 - Council Member Garza, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Nay: 1 - Council Member Guajardo Abstained: 0 Enactment No: 031082 Corpus Christi Page 16 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 21. Resolution in support of an Affordable Housing development to satisfy the requirement set forth by the Texas Department of Housing and Community Affairs (TDHCA) (Council Priority - Economic Development) Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed affordable housing project known as Sea Gulf Villa Apartments to be developed by Corpus Christi SGV, LP. Mayor Pro Tem Vaughn referred to Item 21, a resolution in support of the proposed affordable housing project known as Sea Gulf Villa Apartments to be developed by Corpus Christi SGV, LP. The presentation on this item was provided during the discussion on Item 20. Mayor Pro Tem Vaughn called for comments from the public. Will Moyers, Vice President of ITEX Group, provided an overview of the project located at 416 N. Chaparral; historic renovation of the building; and requested support for the resolution. Clark Colvin, Executive Vice President of ITEX Group, responded to questions regarding the historical designation of the building. Council members discussed the following topics: code enforcement violations on the building; the current condition and structure of the building; the historical designation; concern that the project is not adding additional inventory of affordable housing; whether the project will have enough funding to complete the renovations; the total cost of the development; the purchase price of the building; previous renovations on the property; whether the developer is a for-profit organization; and whether the project would remain on the City's tax roll. Council Member Molina made a motion to approve the resolution, seconded by Council Member Rubio. This Resolution failed and was not approved with the following vote: Aye: 2 - Council Member Molina and Council Member Rubio Nay: 6 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Smith and Council Member Vaughn Abstained: 0 Q. BRIEFINGS: (ITEMS 31 - 32) 31. Regional Parkway Planning & Environmental Linkages Study (Council Priority - Streets) Mayor Pro Tem Vaughn deviated from the agenda and referred to Item 31. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to provide an update on the Regional Parkway Planning & Environmental Linkages Study. Ms. Gray introduced the presentation team including: Robert Leahey, Vice President of HDR, and Jeff Pollack, Transportation Planning Director for the Corpus Christi Metropolitan Planning Organization (MPO). Ms. Gray stated that the project is good for the future of Corpus Christi Page 17 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 transportation in Corpus Christi and addresses development growth and traffic congestion along one of the City's major corridors, State Highway 358. The presentation team presented the following information: a background of the Regional Parkway; the study overview; the process; the purpose and need for the Regional Parkway; the cost of doing nothing; the alternatives analysis; the results of the alternatives analysis; the highest -ranked alternatives; the potential vision; and recommendations. The recommendations include: amending the City's Urban Transportation Plan to include the alignments; further evaluation of the environmental mitigation strategies; connecting with additional arterials; and continuing stakeholder outreach. In response to a council member, Mr. Pollack said he would provide information on the MPO's work regarding the Harbor Bridge Project. N. REGULAR AGENDA: (ITEMS 22 - 24) 22. Resolution in support of an Affordable Housing development to satisfy the requirement set forth by the Texas Department of Housing and Community Affairs (TDHCA) (Council Priority - Economic Development) Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed affordable housing project known as Village at Henderson to be developed by TG 110 Village at Henderson, LP. Mayor Pro Tem Vaughn deviated from the agenda and referred to Item 21, a resolution in support of the proposed affordable housing project known as Village at Henderson to be developed by TG 110 Village at Henderson, LP. The presentation on this item was provided during the discussion on Item 20. Mayor Pro Tem Vaughn called for comments from the public. Brad McMurray, Development Director for Prosper Housing Community Services, provided an overview of the project and requested support for the project. Council Member Molina made a motion to approve the resolution, seconded by Council Member Garza. This Resolution was passed and approved with the following vote: Aye: 7 - Council Member Garza, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Nay: 1 - Council Member Guajardo Abstained: 0 Enactment No: 031083 23. Resolution in support of an Affordable Housing development to satisfy the requirement set forth by the Texas Department of Housing and Community Affairs (TDHCA) (Council Priority - Economic Development) Corpus Christi Page 18 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Resolution of the City Council of the City of Corpus Christi, Texas in support of the proposed affordable housing project known as Samuel Place Apartments to be developed by TG 110 Samuel Place, LP. Mayor Pro Tem Vaughn referred to Item 23, a resolution in support of the proposed affordable housing project known as Samuel Place Apartments to be developed by TG 110 Samuel Place, LP. The presentation on this item was provided during the discussion on Item 20. Mayor Pro Tem Vaughn called for comments from the public. Brad McMurray, Development Director for Prosper Housing Community Services, provided an overview of the project and requested support for the project. Council Member Molina made a motion to approve the resolution, seconded by Council Member Garza. This Resolution was passed and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 Enactment No: 031084 24. Resolution identifying a development in the City Central Corridor Community Revitalization Plan which will contribute to revitalization efforts. (Council Priority - Economic Development) Resolution of the City Council of the City of Corpus Christi, Texas identifying the project known as Samuel Place Apartments as a development that will contribute most significantly to the concerted revitalization efforts of the City in the City Central Corridor; and providing for an effective date. Mayor Pro Tem Vaughn referred to Item 24. Director of Housing and Community Development Rudy Bentancourt stated that the purpose of this item is to identify the proposed development of Samuel Place Apartments as contributing most significantly to the concerted revitalization efforts of the City Central Corridor Plan. There were no comments from the Council or the public. Council Member Molina made a motion to approve the resolution, seconded by Council Member Guajardo. This Resolution was passed and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member McComb, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Abstained: 0 Enactment No: 031085 Corpus Christi Page 19 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 O. FIRST READING ORDINANCES: (ITEM 25) 25. First Reading Ordinance - To Remove Previously Annexed Areas in Southside FM 2444 Ordinance disannexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the previously proposed Apex wind farm from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. Mayor Pro Tem Vaughn referred to Item 25. Assistant City Manager Mark Van Vleck stated that Item 25 and Future Agenda Item 30 are related. The purpose of Item 30 is to execute an agreement with Chapman Ranch Wind I, LLC with the following key parameters: the term is for 25 years; the developers have agreed not to constructor allow to be constructed any turbines in excess of 100 feet tall; the less than 100 feet was to allow private, residential -type turbines to be constructed in the area; and the City agrees to disannex the property within six months of the agreement. The purpose of Item 25 is to disannex the properties that were annexed by Ordinance No. 030307 on October 14, 2014. Mayor Pro Tem Vaughn called for comments from the public. Shane Torno, 6830 Windy Creek, spoke regarding the rush to disannex the property and the need to make sure that the development agreement is airtight. Mr. Torno requested that the City Council table this item to make sure that it is compatible with the military. Council members spoke regarding the following topics: whether the agreement provides for the ability to re -annex the property; the flexibility in the contract; whether the City could annex the property after the development has occurred; the effective date of the contract; questions raised for discussion in executive session; concern with the terms of the agreement; and what would occur if the City Council took no action. S. EXECUTIVE SESSION: (ITEM 35) Meeting went into Recess Meeting Reconvened Mayor Pro Tem Vaughn deviated from the agenda and referred to Executive Session Item 35. The Council went into executvie session at 5:38 p.m. The Council returned from executive session at 6:11 p.m. 35. Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to annexation, deannexation, provision of utility services in annexed areas, municipal Corpus Christi Page 20 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 authority in the City's extraterritorial jurisdiction, wind turbines, agreements related to aforementioned items, and other legal matters related to the aforementioned matters in areas annexed by the City in 2014 Meeting went into Recess Meeting Reconvened This E -Session Item was discussed in executive session. O. FIRST READING ORDINANCES: (ITEM 25) 25. First Reading Ordinance - To Remove Previously Annexed Areas in Southside FM 2444 Ordinance disannexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the previously proposed Apex wind farm from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. Mayor Pro Tem Vaughn referred to Item 25. There were no further questions from the City Council. Council Member Rubio made a motion to approve the ordinance, seconded by Council Member Hunter. This Ordinance was passed on first reading and approved with the following vote: Aye: 7 - Council Member Garza, Council Member Guajardo, Council Member Hunter, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Nay: 1 - Council Member McComb Abstained: 0 P. FUTURE AGENDA ITEMS: (ITEMS 26 - 30) Mayor Pro Tem Vaughn referred to Future Agenda Items. City Manager Margie C. Rose stated that staff had planned presentations on Item 27 and 28. 26. Resolution submitting a grant application to the State for the Justice Assistance Grant (JAG) Program Resolution authorizing the submission of a grant application in the amount of $288,116 to the State of Texas, Criminal Justice Division, for funding eligible under the FY2016 Justice Assistance Grant (JAG) program for law enforcement equipment; and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, Corpus Christi Page 21 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 alter or terminate the grant. This Resolution was recommended to the consent agenda. 27. Resolution Approving Street Selection Process for Residential Street Rebuild Program (RSRP) (Council Priority - Streets) Resolution approving the concepts, direction and selection criteria for the Residential Street Rebuild Program (RSRP). This Resolution was recommended to the consent agenda. 28. Construction Contract for Ennis Joslin Road Extension (Holly to Williams) (Bond 2014 Proposition 2) (Council Priority - Streets) Motion authorizing the City Manager, or designee, to execute a construction contract with Haas -Anderson Construction, Ltd. of Corpus Christi, Texas in the amount of $4,683,389.20 for Ennis Joslin Road Extension (Holly to Williams) for the total base bid. (BOND 2014 Proposition 2) This Motion was recommended to the consent agenda. 29. Supply Agreement for Sludge Dewatering Polymer for Wastewater Plants Motion authorizing City Manager, or designee, to execute a supply agreement with Polydyne, Inc., of Riceboro, Georgia for the purchase of Sludge Dewatering Polymer ("chemical") in response to Request for Bid No. 991 based on the lowest, responsive, responsible bid for a total amount not to exceed $96,946.20, with an estimated expenditure of $48,473.10 in FY2016-2017 and funded by the Wastewater Fund. The term of the agreement is for one year with an option to extend for up to two additional one-year periods, subject to the sole discretion of the City. This Motion was recommended to the consent agenda. 30. Resolution Authorizing a Disannexation Agreement to Restrict Wind Turbines within the Disannexed Area Resolution authorizing the City Manager or designee to execute a disannexation agreement with Chapman Ranch Wind I, LLC, a Corpus Christi Page 22 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 Delaware limited liability company, for annexed parts of Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41. This Resolution was recommended to the consent agenda. R. LEGISLATIVE UPDATE: None. S. EXECUTIVE SESSION: (ITEMS 33, 34 and 36) Mayor Pro Tem Vaughn referred to the day's executive sessions. The Council went into executive session at 6:34 p.m. The Council returned from executive session at 7:29 p.m. 33. Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys regarding legal issues related to City Council procedures and laws and regulations related to the aforementioned provisions. This E -Session Item was discussed in executive session. 34. Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to the regulation of weapons and pursuant to Texas Government Code § 551.076 to discuss the deployment or specific occasions for implementation of security personnel or devices. This E -Session Item was discussed in executive session. 36. Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to potential economic development agreement(s) with businesses that are considering the construction, expansion, maintenance, and/or ownership of industrial facilities that will be consumers of water and wastewater services, reuse, desalination, utility rate design, and water and wastewater treatment and distribution and pursuant to Texas Government Code § 551.087 to discuss confidential commercial or financial information pertaining to the aforesaid business prospect(s) that the City seeks to have locate, stay or expand in or near the territory of the City and with which the City may conduct economic Corpus Christi Page 23 Printed on 3/17/2017 City Council Meeting Minutes February 28, 2017 T. ADJOURNMENT development negotiations and/or deliberate possible economic development issues concerning said business prospect(s). This E -Session Item was discussed in executive session. The meeting was adjourned at 7:29 p.m. Corpus Christi Page 24 Printed on 3/17/2017 Corpus Christi Meeting Minutes City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Friday, March 10, 2017 10:00 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. Mayor Pro Tem Carolyn Vaughn to call the meeting to order. Mayor Pro Tem Vaughn called the meeting to order at 10:06 a.m. B. City Secretary Rebecca Huerta to call the roll of the required Charter Officers. City Secretary Rebecca Huerta called the roll and verified that a quorum of the City Council and the required Charter Officers were present to conduct the meeting. Charter Officers: Assistant City Manager Mark Van Vleck, City Attorney Miles K. Risley, and City Secretary Rebecca Huerta. Present: 6 - Council Member Paulette Guajardo,Council Member Michael Hunter,Council Member Ben Molina,Council Member Lucy Rubio,Council Member Greg Smith, and Council Member Carolyn Vaughn Absent: 2 - Council Member Rudy Garza, and Council Member Joe McComb C. EXECUTIVE SESSION: (ITEMS 1 - 2) Meeting went into Recess Meeting Reconvened 1. Mayor Pro Tem Vaughn referred to the day's executive sessions. The Council went into executive session at 10:07 a.m. The Council returned from executive session at 2:44 p.m. Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to Article II of the Charter of the City of Corpus Christi, matters related to eligibility to serve on City Council, term limits, the application of term limits provisions of the City Charter to Mark Scott, the application of candidacy qualification provisions by the City Secretary and presiding officer, and timing issues related thereto, candidacy qualifications Corpus Christi Page 1 Printed on 3/17/2017 City Council Meeting Minutes March 10, 2017 2. pursuant to the Texas Election Code, Texas Election Code 145.003, potential litigation relating to the aforementioned issues, and other legal questions related thereto. This E -Session Item was discussed in executive session. Executive session pursuant to Texas Government Code § 551.074 (Personnel Matters) to deliberate the employment, evaluation, reassignment, duties, or discipline of the City Secretary. This E -Session Item was discussed in executive session. D. REGULAR AGENDA: (ITEM 3) 3. Discussion and possible motions, resolutions, ordinances or other actions related to the eligibility/ineligibility of former City Council Member Mark Scott for the May 6, 2017 Special Election for Mayor and future City Council elections. Mayor Pro Tem Vaughn referred to Item 3 and the following resolution was considered: City Council Resolution Regarding Eligibility of Mark Scott to Run in Corpus Christi Special Election on May 6, 2017. City Secretary Rebecca Huerta read the following four findings (Sections 1-4) from the resolution: Section 1. That the Corpus Christi City Council finds that Mark Scott has served four two-year terms consecutively as a council member. Section 2. That the Corpus Christi City Council finds that Mark Scott has reached the limitation on terms provided in City Charter Article 11 Section 1(d) and, therefore, is not eligible for election or appointment to City Council until three consecutive terms of office for the council have expired. Section 3. That the City Secretary is directed to utilize this Resolution and the facts stated herein to administratively declare Mark Scott ineligible for election or appointment to the City Council until three consecutive terms of office for the council have expired. Section 4. The City Secretary is authorized to issue an administrative declaration of ineligibility to Mark Scott regarding the May 6, 2017 special election. City Attorney Miles K. Risley read the rules of decorum. Mayor Pro Tem Vaughn called for comments from the public. Susie Luna Saldana thanked the council; discussed resolving this issue; expressed concerns regarding the rules of decorum preventing the public from asking city council members questions; and potential litigation regarding this item. Mayor Pro Tem Vaughn called for comments from council members. There were no comments from council members. Council Member Rubio made a motion to approve the resolution, seconded by Corpus Christi Page 2 Printed on 3/17/2017 City Council Meeting Minutes March 10, 2017 Mayor Pro Tem Vaughn. This Resolution was passed and approved with the following vote: Aye: 6 - Council Member Guajardo, Council Member Hunter, Council Member Molina, Council Member Rubio, Council Member Smith and Council Member Vaughn Absent: 2 - Council Member Garza and Council Member McComb Abstained: 0 Enactment No: 031086 E. ADJOURNMENT The meeting was adjourned at 2:49 p.m. Corpus Christi Page 3 Printed on 3/17/2017 City Of Corpus Christi BUILDING STANDARDS BOARD BOARD DETAILS OVERVIEW SIZE 7 TERM LENGTH 3 Years TERM LIMIT 6 Years The Building Standards Board hears 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 buildings or structures. DETAILS COMPOSITION Seven (7) members, three (3) members at -large of whom shall be residents of the City and home owners; one (1) 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. CREATION / AUTHORITY Section 13-23, Code of Ordinances. Ordinance No. 7506 - 3-3-65; Ord. No. 9811 - 6-24-70; Ord. No. 13546 - 1-05-77; Ord. No. 022423 - 11-28-95. MEETS Every other month on the 4th Thursday, 1:30 p.m., Council Chambers. The board shall meet within 30 days after notice of an appeal. Meetings are at City Hall. The Building Official or his designee shall keep a record of the business of this office. The records shall be open to public review. TERM DETAILS Three-year staggered terms. DEPARTMENT Housing and Community Development COMMITTEE/ SUBCOMMITEE N/A AGENDAS OTHER INFORMATION BUILDING STANDARDS BOARD Page 1 of 1 Building Standards Board Members March 21, 2107 Three (3) vacancies with terms to 3/3/20 representing the following categories: 1- member at -large and homeowner, 1- lawyer and 1- chosen from: realtor, architect, engineer, general contractor, home builder or building materials dealer. Name Board Name Status District Term End Date Position Attendance Joel E. De La Garza Matthew Ezell Lee Hassman BUILDING STANDARDS BOARD BUILDING STANDARDS BOARD BUILDING STANDARDS BOARD Seeking reappointment District 4 Partial 03/03/17 Lawyer Seeking reappointment District 2 1 Member 80% 4/5 meetings 100% 5/5 meetings Vice -Chair 80% 4/5 meetings 03/03/17 General Contractor Chair Seeking reappointment District 5 Partial 03/03/17 Member At -Large Dante C. Miller Tim Honea Craig Loving Gary K. Adams BUILDING STANDARDS BOARD Active BUILDING STANDARDS BOARD Active BUILDING STANDARDS BOARD Active BUILDING STANDARDS BOARD Active District 5 1 District 5 1 District 2 1 District 4 1 03/03/19 Home Builder 03/03/18 Home Builder 03/03/18 Member At -Large 03/03/19 Member At -Large Member Member Member Member Cate•o Building Standards Board Applicants March 21, 2017 Boards A• •1 in• For District 111.1 - ! ■® Work Phone Peter G. ('.evesnc Rlill PIING STAsinart 15 unarm flictrirt 7 Fri RwrheI Fnnnriatinn ii5 N_ C renre hna_ Snite 700 Cnrnnc Chricti TX .01-001-9f14f1 Ct-I arae Michael M. Miller BUILDING STANDARDS BOARD District 4 Teal Construction Company 5110-B IH 37 Corpus Christi TX 361-882-4825 At -Large or General Contractor BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Feb 02, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Pete G. Cavazos Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? BUILDING STANDARDS BOARD Street Address Suite or Apt City State Postal Code District 2 What district do you live in? Primary Phone Alternate Phone Ed Rachal Foundation Director of Facility Operations Employer Job Title 555 N. Carancahua, suite 700 Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78404 Work Address - Zip Code Pete G. Cavazos Page 1 of 4 361-881-9040 Work Phone pcavazos@edrachal.org Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) Associates Degree in Architecture, Certified Building Code Official, Building Inspector, Plans Examiner, Coastal Construction Inspector and Fire Inspector. Registered Voter? r• Yes r No Current resident of the city? r: Yes ` No 49 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Hispanic Pete G. Cavazos Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Pete G. Cavazos Page 3 of 4 Board -specific questions (if applicable) Question applies to BUILDING STANDARDS BOARD. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * None of the above Question applies to BUILDING STANDARDS BOARD. Are you a Homeowner in the City of Corpus Christi? r Yes r No Pete G. Cavazos Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Jan 04, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Michael M Miller Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? BUILDING STANDARDS BOARD Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Teal Construction Company Director Employer Job Title 5110-B IH 37 Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78407 Work Address - Zip Code Michael M Miller Page 1 of 4 3618824825 Work Phone miller@tealcon.com Work E-mail address Work Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: N/A Education, Professional and/or Community Activity (Present) Some College President of Corpus Christi Metro Ministries Board Member Goodwill Industries of South Texas Registered Voter? r• Yes r No Current resident of the city? t7 Yes ` No 30 Total If yes, how many years? Michael Miller Resume 1-4- 17.docx Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Michael M Miller Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Michael M Miller Page 3 of 4 Board -specific questions (if applicable) Question applies to BUILDING STANDARDS BOARD. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * General Contractor Question applies to BUILDING STANDARDS BOARD. Are you a Homeowner in the City of Corpus Christi? r Yes r No Michael M Miller Page 4 of 4 Michael M. Miller Objective To utilize my extensive construction and leadership skill sets in an effort to better the community in which I live. Experience Director of Business Development, Teal Construction Company January 2011 -Present Currently serving as the business development director for the Corpus Christi, Houston, and San Antonio offices, as well as the general manager of the South Texas office. Oversee marketing efforts including direct mail, social media, tradeshows, promotional items, company branding, etc. Provide technical writing for the preparation of proposals and marketing materials. In charge of creating and maintaining relationships with clients, subcontractors, and vendors as well as providing a community presence for the company. Managing an office of 3 project managers, 2 projects coordinators, and 8 superintendents with an annual office revenue of $30,000,000. Integral in implementing new procedures and technology, company wide. Oversight of all operations including work in progress, cost to complete reports, schedule maintenance, reporting and financials for all regional offices with a combined annual revenue of over $80,000,000. Partner, Miller West, LTD May 2000 -Present Active on behalf of my disabled father on his interests in our family ranching and oil & gas production operations. Management of cow/calf operations on roughly 8,000 acres of ranch property in Duval, Live Oak, and Bee counties. Management of family oil & gas production company which operates 3 active wells in Duval County. Review and execution of oil & gas mineral leases over numerous mineral properties located in Texas, Arkansas, Oklahoma, and New Mexico. Chief Estimator, KJM Commercial, Inc. October 2009 -January 2011 Returned to KJM Commercial in order to elevate the portfolio of the company to include public projects. Implemented new technologies including on-screen takeoff software and created all new estimating templates. Performed as an estimator on projects ranging in value from $300,000 to $8,000,000. Chief Estimator, BARCOM Commercial, Inc. May 2008 -October 2009 Performed as an estimator on projects ranging in value from $100,000 to $22,000,000. Coordinated production of qualifications packages and performed presentations during interviews. Compiled a proven track record as a consistently low bidder on projects including but not limited to K-12 institutions, higher education facilities, churches, and medical office buildings. Chief Estimator, KJM Commercial, Inc. May 2007 -May 2008 Performed as an estimator on projects ranging in value from $100,000 to $6,000,000. Both coordinated subcontractor bids as well as performed comprehensive material and labor takeoffs. Built schedules in order to accurately predict job duration. Compiled a proven track record as a consistently low bidder on projects including but not limited to medical office buildings, retail shells, financial institutions, restaurants, and "big box" interior finish outs. Education Leadership Corpus Christi, Class 40 2011 Participated in one of the state's oldest community leadership programs. The 12 month exclusive program provided leadership training for the unique business atmosphere in South Texas. Construction Estimating Institute, Houston, Texas 2007 Completed courses in concrete, general commercial construction, and earth work estimating. Blinn College, Bryan Campus 2003-2005 Completed business courses with the intent of pursuing a degree in Construction Science at Texas A&M University. Texas A&M University Corpus Christi 2000-2002 Completed coursework with the intent of pursuing a degree in Geology Community Involvement Corpus Christi Metro Ministries 2012 -Present Currently serving as the President of the Board of Directors for a non-profit organization that provides a transitional program for the homeless of Corpus Christi. The 34 year old organization has an 80% success rate at transitioning its clients into a sustainable lifestyle with an annual budget of $2.2 million. 2 Goodwill Industries of South Texas 2015 -Present Currently serving on the Board of Directors for Goodwill Industries of South Texas. Goodwill, among other programs, has 16 retail stores and services 20 counties from Victoria to Brownsville. In 2015 Goodwill served over 7,300 people across South Texas. "What's Up Corpus Christi?" 2012-2014 Developed a community calendar including a website and smart phone app for the citizens of Corpus Christi. Program is currently being operated by the Corpus Christi Chamber of Commerce. www.whatsupcc.org 2 City Of Corpus Christi ETHICS COMMISSION BOARD DETAILS OVERVIEW SIZE 9 Seats TERM LENGTH 3 Years TERM LIMIT 6 Years The Ethics Commission, in addition to having jurisdiction over complaints involving any "city official", are to prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics; review all statements and reports filed with the city; annually review the code of ethics and make appropriate recommendations to the city council; review all public opinions related to the code of ethics that are issued by the city attorney; prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within 30 days following the deadline for filing the last campaign finance reports for each city council election. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three (3) members may call a meeting provided that reasonable notice is given to each member. The commission shall meet at least once a year. The date of the annual meeting shall be in September. The commission shall comply with the Texas Open Meetings Act. DETAILS COMPOSITION Nine members appointed by a two-thirds vote of the full council. Nominations are to be solicited from a wide variety of professional and community organizations in the city, but interested individuals may also submit their names for consideration. Initially, the terms of three members shall be one year, and the initial terms of another three members shall be two years. The persons having such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in the Code of Ethics. The commission shall elect a Chairperson and a Vice -Chairperson. CREATION / AUTHORITY Section 2-320, Code of Ordinances; Ordinance No. 20781, 9/19/89, Ord. 023460 , 10-13-98; Ord. No. 024614 - 10/9/01. MEETS 2nd Thursday of the month, 5:30 p.m., City Hall, Fifth Floor - ACM Conference Room. TERM DETAILS Three-year staggered terms. DEPARTMENT Legal COMMITTEE/ SUBCOMMITEE N/A AGENDAS OTHER INFORMATION For information on how to file an ethics complaint regarding a city official, please ETHICS COMMISSION Page 1 of 2 go to http://www.cctexas.com/government/city-secretary/ethics-filings- complaints/index. ETHICS COMMISSION Page 2 of 2 Ethics Commission Members March 21, 2017 One (1) vacancy with term to 10/1/17. (Note: Appointment requires 2/3 vote of full Council.) Name Board Name Status District Term End Date Position Larry White ETHICS COMMISSION Filed as a Candidate for Special Election District 5 2 10/01/17 Member Alicia Benavidez ETHICS COMMISSION Active District 4 2 10/01/18 Member Dr. Haysam Dawod ETHICS COMMISSION Active District 5 2 10/01/17 Karon Connelly ETHICS COMMISSION Active Chair District 4 2 10/01/18 Vice -Chair Richard (Rick) E. Milby ETHICS COMMISSION Active District 1 1 10/01/18 Member Craig Rogers ETHICS COMMISSION Active District 4 1 10/01/19 Member Rob Bailey ETHICS COMMISSION Active District 4 1 10/01/19 Member Drue Jones ETHICS COMMISSION Active District 2 1 10/01/17 Member Richard G. Hood ETHICS COMMISSION Active District 5 1 10/01/19 Member Name District Em .lo er Work Address Work Phone lllllllllll� Robert A. Alvarez ETHICS COMMISSION District 5 Alvarez Insurance Group Gerald Avila ETHICS COMMISSION District 5 Delmar College ,11 5810 S. Staples Corpus Christi TX 361-442-6799 101 Baldwin Blvd. Corpus Christi TX Corpus Christi TX 361-289-4119 Wallace W. Echols, Jr. ETHICS COMMISSION District 4 Holiday Inn Corpus Christi Airport /Hotel Equities 5549 Leopard St. Jack Gordy ETHICS COMMISSION District 3 Ethics Commission Applicants March 21, 2017 Paul G. Gottemoller ETHICS COMMISSION District 5 Del Mar College 101 Baldwin Blvd. Corpus Christi TX 361-698-1698 Coretta Graham ETHICS COMMISSION District 3 Self -Employed 3206 Reid Dr., Ste. 105 Corpus Christi TX Grant Huffman ETHICS COMMISSION District 5 KRIS Communications 301 Artesian St. Corpus Christi TX 361-654-1668 Michael E. Linnane ETHICS COMMISSION District 4 Retired Scott H. Mesmer ETHICS COMMISSION District 4 CAE Corpus Christi TX 361-944-8401 Deborah K. Rios ETHICS COMMISSION District 4 Rios Law Office 3230 Reid Dr., Suite J Corpus Christi TX 361-510-5806 Thomas Rosales ETHICS COMMISSION District 1 Texas Health and Human Services Commission 3533 S. Alameda Corpus Christi TX 361-694-4576 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, COMMISSION Submit Date: Jul 05, 2016 OR COMMITTEE FOR THE Status: submitted Profile Robert A Prefix First Name Middle Initial Email Address Alvarez Last Name Which Boards would you like to apply for? CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION, ETHICS COMMISSION, TRANSPORTATION ADVISORY COMMISSION Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone Alvarez Insurance Group Owner/Broker Employer Job Title 5810 S. Staples Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78413 Work Address - Zip Code Robert A Alvarez Page 1 of 4 3614426799 Work Phone radam@alvarezinsgroup.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No. Education, Professional and/or Community Activity (Present) Promoter of locality and professional networking in the Corpus Christi community for my own insurance agency. Registered Voter? r• Yes r No Current resident of the city? t7 Yes ` No 32 If yes, how many years? Adam s Resume 2014 1 .docx Upload a Resume Please upload any additional supporting documents Demographics Hispanic Robert A Alvarez Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Robert A Alvarez Page 3 of 4 Board -specific questions (if applicable) Question applies to CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION Are you a qualified elector* of the City? c Yes c No Question applies to TRANSPORTATION ADVISORY COMMISSION. Per city ordinance, at least one member of this commission shall represent the bicycling community. Do you qualify for this category? c Yes tr No Robert A Alvarez Page 4 of 4 Robert Adam Alvarez Objective Summary: To utilize my skills and abilities to better the customer/client experience and satisfaction and to further the success of the business. ,/ Typing — over 65 words per minute ,/ Strong use of multi -line phone and soft -phones ,/ Extremely clean background and driving record Experience Areas of Expertise: Strong multitasker ,/ Very fast learner ,/ Expert with all MS Office applications and other computer programs ,/ Experienced in data entry ,/ Expert in creating and and 10 -key with good filing reports speed and accuracy ,/ Highly professional ,/ Excellent people skills Nonferrous Supervisor, CMC Recycling, Corpus Christi, TX, June 2013 — Present Day • Run day-to-day operations at nonferrous scale. • Take care of customer's needs and work to retain them. • Supervised a crew of 5-10 people. Office Assistant, J&G Armadillo Bookkeeping, Corpus Christi, TX, June 2008 — June 2013 • Helped with day to day clerical operations/filing in running the office. • Gather all necessary data to completing tax returns, i.e. receipts, legal documents, home information, etc. • Keyed in proper data into databases of all financial info utilizing the 10 -key. (Primary) File Clerk, Royston, Rayzor, Vickery & Williams, LLC., May 2007 — August 2008 • Prepared and set up project for transition of traditional paper system to modified "paperless" filing system. • Responsible for filing and indexing for a 10 lawyer law firm and assisting paralegals and runners. Education University of Dallas — Irving — August 2001 to June 2004 -Bachelors of Science in Business with Concentration in Marketing Texas A&M — Corpus Christi — August 2000 to May 2001 — Criminal Justice Robert Adam Alvarez 0 Page 2 of 2 References available upon request... BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 13, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile GERALD AVILA Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone Delmar College Adjunct Professor Employer Job Title 101 Baldwin Blvd Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78404 Work Address - Zip Code GERALD AVILA Page 1 of 4 Work Phone gavila2@delmar.edu Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) BA in History - New Mexico State University BA in Government - New Mexico State University MS in Adult Education and Programming - Kansas State University Social Studies Teacher Certification (Texas) 7-12 Retired Lieutenant Colonel, US Army - 26 years with various leadership assignments culminating as Professor of Military Science, Texas A&M Corpus Christi; taught Organizational Leadership/Ethics/Adaptive Leadership in a Complex Environment Combat Veteran (Afghanistan) Taught Sociology/Psychology/World History/Geography at Moody HS Adjunct Professor at Delmar College; teach History Own Casitas de Avila, LLC - Real Estate Company Volunteer with Red Cross and Big Brother Program Registered Voter? Yes No Current resident of the city? Yes r No 7 years If yes, how many years? Avila Resume.docx Upload a Resume Please upload any additional supporting documents GERALD AVILA Page 2 of 4 Demographics Hispanic Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. fJ I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. TJ I Agree GERALD AVILA Page 3 of 4 Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Board -specific questions (if applicable) GERALD AVILA Page 4 of 4 Gerald Avila 1 SUMMARY Provide executive leadership with a clear vision and goals; establish a moral and ethical positive environment by example and through open communication; motivate passionate personnel to improve others way of life through grassroots approaches which will impact and inspire all. -Cultural Astute -Bilingual (English/Spanish) -Instruction -Teambuilding -Resource Manager -Strategic Planning -Result oriented -Program Design -Multi-task oriented -Negotiator -Budget -Leadership CAREER HIGHLIGHTS Executive Leadership • Created a strategy to recruit, develop, retain and commission top quality college students as Second Lieutenants into the U.S. Army as the CEO and Professor of Military Science, Reserve Officer Training Corps (ROTC), Texas A&M University -Corpus Christi. Designed a marketing and branding plan to expose the organization to the local and regional community while developing students through outcome based training and education. - Commissioned 47 adaptive and critical thinking officers into the U.S. Army. - Negotiated and secured a 1300 acre ranch for training; over $2 million in scholarships for students; and the retention of over 100 students per school year. - Organization is now the Premier Senior ROTC Program in South Texas. Management • Provided direct oversight of program staffs consisting of military and federal civilian employees. Managed program's daily operations to include operations, logistics, budget, legal actions, training, safety, and facilities. -Processed over 56,000 Soldiers into the U.S. Army. -Maintained an operational budget of $780,000. -Flawlessly facilitated the realignment of multiple Army organizations and restructuring them to maximize unit effectiveness Operations • Planned, programmed, and implemented strategic human resources reforms for the Afghan National Army. Shaped the complex environment by working directly with the Afghan Deputy Minister of Defense to develop and implement Human Resources policies and regulations. -Developed the Afghan Personnel Systems Lifecycle Model that was adopted and implemented throughout the Ministry of Defense. -Facilitated the development and implementation of 13 human resources systems throughout the Afghan National Army. -Thrived in a multi -national, multi -service environment. Greatly improved U.S. and Afghan relations through cultural awareness, active listening, and diplomatic negotiations. PROFESSIONAL EXPERIENCE U.S. Army Officer, Senior Human Resources Officer 1994-2014 Successful and distinguished military career progressing to the rank of Lieutenant Colonel with increasingly responsible positions requiring direct leadership, definite ethical conduct, project planning and execution, and fiscal responsibility. Chief Executive Officer and Professor of Military Science, United States Army Cadet Command, Texas A&M University -Corpus Christi, Corpus Christi, TX, 2011 — 2014 • Provided vision, established a strategy, and managed resources to meet goals and objectives. • Developed adaptive, critical leaders through Outcomes Based Training and Education. • Fostered relationships between the U.S. Army, university officials, and community leaders. Executive Officer, 43d Reception Battalion, Ft. Leonard Wood, MO, 2010-2011 • Managed the program's daily operation of processing soldiers into the U.S. Army and transporting them to their assigned training units resulting in processing over 24k soldiers a year. • Designed effective processing mechanisms to maximize efficiency by leading a team of external federal agencies greatly reducing soldier attrition rate from 5% to 1.6%. Senior Advisor to Deputy Minister of Defense for Personnel and Education, Combined Security Transition Command -Afghanistan, Operation Enduring Freedom, 2007-2008. • Subject matter expert on all U.S. Army human resources policies and aided Afghan National Army human personnel recruit, process, and document over 125,000 Afghan soldiers. • Selected as Senior Advisor to the Deputy Minister of Defense by achieving a 100% approval rate on human resource policies through diplomatic negotiations with various Afghan diplomats. Senior Human Resources Operations Officer, 21St Theater Sustainment Command, Kaiserslautern, Germany, 2006-2007. • Human resources planner of the largest logistics organization outside the United States covering the European continent and provided accountability oversight of thousands of soldiers deploying from Europe to Afghanistan and Iraq. • Project manager on the implementation of a new Army human resources application throughout the organization; as well as the employment of human resource sustainment center in Europe. • Directly involved in planning the restructure of the organization which led to the successful transformation of three large size units, the inactivation of two units, while simultaneously deploying and re -integrating units in support of the Global War on Terrorism. EDUCATION Texas Teacher Certification, Corpus Christi, TX Master of Science in Adult Education and Programming, Kansas State University, KS Bachelor of Arts in History and Government, New Mexico State University, NM Senior Officer Leadership School, Ft. Leavenworth, KS Senior Human Resources Officer Course, Ft. Jackson, SC Officer Leadership School, Ft. Leavenworth, KS Human Resources Officer Course, Ft. Ben Harrison, IN PROFESSIONAL SOCIETIES/MEMBERSHIPS Iraq and Afghanistan Veterans of America (IAVA) Society for Comparative Adult Education BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 09, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Wallace W Echols jr Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? AIRPORT BOARD, ARTS & CULTURAL COMMISSION, ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Holiday Inn Corpus Christi Airport / Hotel Equities Employer 5549 Leopard St Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78408 Work Address - Zip Code Director of Sales and Marketing Job Title Wallace W Echols jr Page 1 of 4 3612894119 Work Phone wade.echols@himarina.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: not at this time Education, Professional and/or Community Activity (Present) 1998 - 1999 Spartan School of Aeronautics Tulsa, Ok 2005 Short Course at Conrad Hilton Hotel Houston, TX 2003-2005 2006 - 2008 Del Mar College Hospitality Program Corpus Christi, TX PROFESSIONAL MEMBERSHIPS / AWARDS 2006-2007 Webmaster for the Coastal Bend Hotel Sales and Marketing Association 2005-2006 Secretary of the Coastal Bend Hotel Sales and Marketing Association Past member of Corpus Christi Chamber of Commerce Past member of the year Corpus Christi Hispanic Chamber of Commerce 2007 Member of the year, Coastal Bend Hotel Sales and Marketing Association 2009 Texas Western Sales Manager of the Year, South Texas Region 2001 -Present Greater Corpus Christi Hotel and Motel Association Registered Voter? Yes No Current resident of the city? Yes r No 10 If yes, how many years? Upload a Resume Please upload any additional supporting documents Wallace W Echols jr Page 2 of 4 Demographics Caucasian/Non-Hispanic Ethnicity Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. fJ I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. TJ I Agree Wallace W Echols jr Page 3 of 4 Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Board -specific questions (if applicable) Wallace W Echols jr Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, COMMISSION Submit Date: Jul 12, 2016 OR COMMITTEE FOR THE Status: submitted Profile Jack Prefix First Name Email Address Middle Initial Gordy Last Name Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 3 What district do you live in? Primary Phone Alternate Phone Employer Job Title Work Address - Street Address and Suite Number Work Address - City Work Address - State Work Address - Zip Code Jack Gordy Page 1 of 4 Work Phone Work E-mail address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: NO Education, Professional and/or Community Activity (Present) HIGH SCHOOL AND ONE YEAR OF COLLEGE PRESIDENT OF CHANNEL 10 PUBLIC ACCESS FOR 91/2 YEARS Registered Voter? r• Yes r No Current resident of the city? t7 Yes ` No If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Jack Gordy Page 2 of 4 Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Jack Gordy Page 3 of 4 Board -specific questions (if applicable) Jack Gordy Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Aug 12, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Paul G. Gottemoller Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone Del Mar College Employer 101 Baldwin Blvd Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78404 Work Address - Zip Code Assistant Professor of Political Science Job Title Paul G. Gottemoller Page 1 of 4 (361) 698-1698 Work Phone pgottemo@delmar.edu Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: I currently serve on the newly reconstituted Clean City Committee Education, Professional and/or Community Activity (Present) I have a BA and MA in Political Studies from University of Illinois, Springfield and a Ph.D. in Political Science from Southern Illinois University. I currently teach government at Del Mar College. Registered Voter? r• Yes r No Current resident of the city? t7 Yes ` No 9 If yes, how many years? CurriculumVita Gottemoller last.doc Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Paul G. Gottemoller Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Paul G. Gottemoller Page 3 of 4 Board -specific questions (if applicable) Paul G. Gottemoller Page 4 of 4 Paul Gottemoller Education • Doctor of Philosophy Candidate, Political Science, Southern Illinois University Carbondale, August 2011. 0 Virtual Summer Institute in Political Psychology, Stanford University, July 2006. • Master of Arts, Political Studies, University of Illinois at Springfield, July 2003. • Bachelor of Arts, Political Studies, University of Illinois at Springfield, May 2001. • Associate of Arts, Political Science, Richland Community College. May 1999. Dissertation • "White Americans' Affect Toward African Americans: Predictive Power on Political Behavior and Measurement Problems" Major Professor: J. Tobin Grant Research and Teaching Interests • American Politics: public opinion and legislative politics. • Political Theory: classical political thought. • Methodology: survey research. Teaching Experience • Assistant Professor, 2009 — Present Del Mar Community College Courses: Federal Government, Texas Government, Introduction to Political Science. • Instructional Assistant Professor, 2007 Illinois State University Courses: Quantitative Reasoning in Political Science. • Teaching Assistant, 2004-2007 Southern Illinois University Course: American Political Parties, Introduction to American Government, Political Methodology: Introduction to Quantitative Analysis, Domestic Sources of Foreign Policy. Service and Activities • Clean City Committee 2016 — Present. • Academic Dishonesty Ad Hoc Committee 2015 — Present. • Faculty Council 2014 — 2016. • Pride Corpus Christi Committee 2012 — 2016. • Political Science Program Coordinator 2011 — 2013. • Department Chair Recommendation Committee, Del Mar College Department of Social Sciences 2010-2011. • Del Mar College Environmental Committee 2011— 2014. • Constitution Day Planning Committee, Del Mar College Department of Social Sciences 2009 - Present. • Assistant Faculty Advisor for University of Illinois at Springfield Model Illinois Government 2001-2003. Publications • Jackson, John and Paul Gottemoller. 2007. "Party Competition in Illinois: Republican Prospects in a Blue State." Occasional Paper Published by the Paul Simon Public Policy Institute. Conference Presentations • Gottemoller, Paul and Randolph Burnside. "Are They Still Hot?: Utilizing Feeling Thermometers as Part of the Answer." Presented at the 2007 Midwest Political Science Association Conference and Presented at the 2007 American Political Science Association Annual Conference. • Gottemoller, Paul and Randolph Burnside. "Am I My Brother's Keeper?: Religiosity and Attitudes Toward Homosexuality." Presented at the 2007 Midwest Political Science Association Conference. Works in Progress • Gleason, Shane A., Paul G. Gottemoller, Paul J. Martin, Ashley Wilson, and J. Tobin Grant. "Attitudes Toward Blacks in Abstract and Specific Contexts." • Gottemoller, Paul G. and J. Tobin Grant. "Efficacy of Using Group Anchors in Measuring Affect." References • Teresa Klein, Assistant Professor Department of Social Sciences Del Mar College • John Jackson, Professor Paul Simon Public Policy Institute Southern Illinois University, Carbondale • Mark Robbins, Assistant Professor Department of Social Sciences Del Mar College BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Sep 15, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Coretta Graham Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 3 What district do you live in? Primary Phone Alternate Phone Self employed Lawyer Employer Job Title 3206 Reid Dr ste 105 Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78404 Work Address - Zip Code Coretta Graham Page 1 of 4 Work Phone Grahamlegalservices@yahoo.com Work E-mail address Work Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) Junior League League of Women Voters Black Chamber of Commerce Leadership Corpus Christi Registered Voter? r• Yes r No Current resident of the city? 'Yes` No 15 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics African American Coretta Graham Page 2 of 4 Female Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Coretta Graham Page 3 of 4 Board -specific questions (if applicable) Coretta Graham Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Jun 20, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Grant Huffman Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone KRIS Communications Account Executive Employer Job Title 301 Artesian St Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78414 Work Address - Zip Code Grant Huffman Page 1 of 4 3616541668 Work Phone ghuffman@kristv.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) No Registered Voter? r• Yes r No Current resident of the city? 'Yes` No 2 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Grant Huffman Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Grant Huffman Page 3 of 4 Board -specific questions (if applicable) Grant Huffman Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Sep 06, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Michael E Linnane Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Retired Employer Job Title Work Address - Street Address and Suite Number Work Address - City Work Address - State Work Address - Zip Code Michael E Linnane Page 1 of 4 Work Phone dlinnane@grandecom.net Work E-mail address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) BBA Management. Past activities; VP of Corpus Christi Women's Shelter, Member of the Board of CC First Methodist Church, United Way Loaned Executive, Chair of Celanese Chemical Co. TX PAC, Creator of Chair of Celanese Community Service Committee, Registered Voter? a' Yes rNo Current resident of the city? t7 Yes ` No 64 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Michael E Linnane Page 2 of 4 Caucasian/Non-Hispanic Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. ISI I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. w I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. I Agree Michael E Linnane Page 3 of 4 Board -specific questions (if applicable) Michael E Linnane Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, COMMISSION Submit Date: Jul 05, 2016 OR COMMITTEE FOR THE Status: submitted Profile Scott H Mesmer Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? AIRPORT BOARD, CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION, CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION, ETHICS COMMISSION, NUECES COUNTY TAX APPRAISAL DISTRICT, OIL AND GAS ADVISORY COMMITTEE Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone CAE Alternate Phone Instructor Employer Job Title Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State Scott H Mesmer Page 1 of 4 7841 Work Address - Zip Code 3619448401 Work Phone Scott.Mesmer@gmail.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: Education, Professional and/or Community Activity (Present) BS Applied Math and Statistics BA Economics. Military Contract T44 Sim Flight Instructor for CAE Captain on B757 for Parallel Express Own Rental Properties "SoftengineHR" Payroll and Human Capital Management Software sales rep Registered Voter? 6- Yes r'No Current resident of the city? I Yes r No 7 If yes, how many years? Scott Mesmer City Application Resume 1 .pdf Upload a Resume Please upload any additional supporting documents Demographics Scott H Mesmer Page 2 of 4 Caucasian/Non-Hispanic Ethnicity Male Gender Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. 14 I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. w I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Scott H Mesmer Page 3 of 4 Board -specific questions (if applicable) Question applies to CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION Are you a qualified elector* of the City? e: Yes c' No Question applies to NUECES COUNTY TAX APPRAISAL DISTRICT. Are you a resident and qualified elector* of the District (Nueces County)? ' Yes r No Question applies to NUECES COUNTY TAX APPRAISAL DISTRICT. Have you resided in the District for at least 2 years? Yes No Question applies to OIL AND GAS ADVISORY COMMITTEE Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * IW Not Connected with Oil and Gas Well Industry Scott H Mesmer Page 4 of 4 Scott H. Mesmer Goal: Looking to give back and work with in the community that I live in by supporting the city in any way that I can. Business Development, Management and Investing Experience Own multiple rental properties in Corpus Christi Invested in Oil and Gas Drilling Rig program as well as Oil Drilling programs September 2015 to present SoftEngineHr sales consultant. Payroll and Human Capital Management software sales position August 2009 to present Co -Owner of Mesmerizing photography. Discovered what it means to be an owner of a business... September 2009 -Present: Elan Express and Parallel Express Business Development Set up Jet Fuel Brokering Business, created relationships with into plane agents, refineries, airport fbo etc to sell jet fuel to clients as well as managed aircraft. Developed relationships for marketing for aircraft parts, aircraft RVSM ferry movements, aircraft acquisitions. Jan 2007 to March 2009 Base Operations Manager for large aircraft international charter operations. Responsible for day to day operations of the base, duties included but not limited to, recommending staffing levels, developed recommendations for policy and procedures for operational needs, involved in hiring and selection process, ensured crewmember compliance with company policy, assigned non -flight duties in support of operations and marketing. Coordinated aircraft charter needs with Director of Operations, Director of Security, Manager of Maintenance, Dispatch, Marketing Department and crew to ensure high quality client experience and safety of flight for international operations. Worked with Director of Planning and Scheduling as well as Training Department to develop and staff monthly flight schedule. Coordinate with Brokers, Clientele, flight crew and management to ensure proper communication flow for process improvement, staff promotions, cost savings initiatives, and other duties not defined that are aimed at reducing costs while increasing productivity without sacrificing quality or safety. Aviation Work Experience CAE Feb 2014 to Present T44 Advanced Flight Sim Instructor & Platform Instructor Parallel Express Oct 2013 to - Part 125 B757 Simulator Chk Airman Oct 2013 to — Part 125 B757 Captain Elan Express Nov 2011 to - Part 125 B757 Simulator Chk Airman Oct 2009 to - Part 125 B757 Captain Swift Aviation Group Dec 11 to — July 13 Part 121 B767 Simulator Chk Airman June 10 to July 13 Part 121 B767 Captain Polaris Aviation Solutions — Jan 10 to June 10 SIC Pt 125 Dallas Mavericks Captain/Base Manager - Pace Airlines Oct 2002 to Oct 2009 B757/B767 Captain Domestic/International Part 121 Captain on B757 for FAA proving runs and check rides to add areas of operations to Airline Ops Specs such as the North Pacific, Polar Ops and North Atlantic Etops. Domestic and International worldwide charter operations that required operations into Russia, the Middle East, South America, Europe, the Pacific and Polar Areas of the Arctic Circle Flight Officer — USAirways May 99 to Jan 02 Pt 121 First Officer B757/B767 A320 Flight Officer — USAirways Express, Piedmont Airlines July 97 to May 99 Pt 121 First Officer DASH 8 1600 Hours of ME Turbo Prop time Flight Officer — KIWI International Airlines July 95 to Oct 96 Pt 121 Flight Engineer — B727 Charter Pilot/ Flight Instructor — Airpark Sales & Service Oct 96 to July 97 PIC Piper Navajo Pt 135 Co Instructor & Asst Chf Pilot Feb 93 to July 95 PIC Piper Navajo Captain on DOD contract such as: Shuttling civilian engineers and military personal between military bases such as Patuxent River, Lakehurst, Dahlgren, Wallops Island Virginia and Cherry Point. Range clearing of oceanic restricted areas in support of F-18 testing program, missile test fire and other military operations. CFI and CFII Instructor Platform Instructor Education SUNY @STONYBROOK: Stonybrook, New York 1990 BS Applied Math and Statistics BA Economics BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, COMMISSION Submit Date: Jul 24, 2016 OR COMMITTEE FOR THE Status: submitted Profile Deborah K Rios Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Rios Law Office Attorney Employer Job Title 3230 Reid Dr., Suite J Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78404 Work Address - Zip Code Deborah K Rios Page 1 of 4 3615105806 Work Phone drioslaw@aol.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: None Education, Professional and/or Community Activity (Present) Coastal Bend Women Lawyers Association - Board of Directors, President Corpus Christi Tennis Association - Board of Directors, Previous board member (2014) Registered Voter? r• Yes r No Current resident of the city? t7 Yes ` No 47 If yes, how many years? Resume-DKR-NEW.pdf Upload a Resume Please upload any additional supporting documents Demographics Hispanic Deborah K Rios Page 2 of 4 Female Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Deborah K Rios Page 3 of 4 Board -specific questions (if applicable) Deborah K Rios Page 4 of 4 DEBORAH K. RIOS OBJECTIVE To obtain a position in which I can utilize my present skills, develop new skills, and have an opportunity for advancement. PROFESSIONAL EXPERIENCE Solo Practitioner RIOS LAW OFFICE 3230 Reid Dr., Suite J, Corpus Christi, Texas 78404 July 2012 - Present June 2007 - November 2010 June 2003 - December 2005 The majority of my professional career has been as solo practitioner. Originally I opened my office practicing in the areas of family law, personal injury, wills & estates, and employment law. In 2007 I expanded my practice to include criminal law. As my practice has expanded over the years I have narrowed my areas of practice to criminal and family law. As a solo practitioner am responsible for drafting all legal documents, meeting with clients, conducting investigation of facts, drafting and answering discovery, and preparing cases for trial. I also have ad litem certification and am frequently appointed as amicus and/or attorney or guardian ad litem in district court and in CPS cases. Assistant Attorney General September 2009 - June 2012 OFFICE OF THE ATTORNEY GENERAL, 2820 S. Padre Island Dr., Corpus Christi, Tx 78415 was responsible for representing the State of Texas at legal proceedings to locate, establish, enforce, modify or terminate court orders for child support and medical support. I provided legal advice and consultation to parties in the Child Support Program. I provided leadership to the court legal team and was responsible for overseeing that employees complete all tasks in a timely manner. My responsibilities included preparing a large court docket and meeting with the legal team to provide direction and/or training necessary to assist in them in implementing the necessary tasks in order to produce a final order in each case. In -House Counsel January 2006 - June 2007 CORPUS CHRISTI ALLERGY & ASTHMA, CORPUS CHRISTI DERMATOLOGY & SKIN SURGERY CENTER and MORGAN PEDIATRIC CENTER, 2502 Morgan Ave., Corpus Christi, Tx was hired as the first in-house counsel for James A. Caplin, M.D., physician -owner of an allergy, dermatology and pediatric clinic. I was responsible for providing leadership in evaluating and mitigating the multitude of legal, ethical and financial risks inherent in operating a large solo practice physician's office in the increasingly regulated healthcare industry. My responsibilities included drafting and reviewing all company contracts, reviewing and negotiating health plan contracts including fee schedules, advising on employment issues including hiring, promotion and training processes, investigating and responding to Texas Medical Board complaints, drafting informed consents for various medical procedures, consulting with senior executive management on contract and legal issues, using and managing outside counsel in a cost efficient manner, drafting compliance programs to prevent and detect violations of law, and providing general legal advice on any and all federal and state statues affecting the company. Associate Attorney October 2002 - May 2003 HORNBLOWER, MANNING & WARD, 711 N. Carancahua, #1811, Corpus Christi, Tx As an associate attorney I worked closely with senior partners in the defense of toxic tort, product liability, personal injury, and commercial litigation claims. I assisted with the defense of premise owners and product manufacturers in personal injury and product liability suits involving allegations of various types of chemical exposures. Additionally, I executed day-to-day activities such as conducting investigations, interviewing witnesses, preparing corporate representatives for deposition, coordinating discovery, managing pretrial matters, conducting settlement negotiations and overseeing document productions. EDUCATION Juris Doctor St. Mary's University School of Law, San Antonio, TX Bachelor of Arts - Political Science with Honors Texas A&M University, with honors, Corpus Christi, TX Associates in Applied Science - Legal Assisting Del Mar College, Corpus Christi, TX High School Diploma W. B. Ray High School ORGANIZATIONS AND LICENSES 8/99 - 5/02 8/97 - 5/99 8/87-5/91 May 1987 Corpus Christi, Texas * Member of the State Bar of Texas (admitted Nov 2002) * Member of the Corpus Christi Bar Association * Member of the Texas Criminal Defense Lawyers Association * President, Coastal Bend Women Lawyers Association * Previous Director, Corpus Christi Tennis Association (2014) BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Thomas Rosales Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? ETHICS COMMISSION Street Address Suite or Apt City State Postal Code District 1 What district do you live in? Primary Phone Alternate Phone Texas Health and Human Services Commission Hospital Based Worker II Employer Job Title 3533 S. Alameda St. Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78411 Work Address - Zip Code Thomas Rosales Page 1 of 4 (361) 694-4576 Work Phone Thomas.Rosales@hhsc.state.tx.us Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) Corpus Christi native. Left Corpus Christi in summer of 1996 and returned back summer of 2012. Obtained my GED with the Adult Learning Center in 1996. I've previously volunteered with Bayfest, HEB Feast of Sharing and Retama Manor Nursing Center. I've been employed with the State of Texas for 14 years in several capacities with the Department of Criminal Justice, Departing of Aging & Disability Services, Youth Commission and now the Health of Human Services Commission. I served one term with the Citizens Advisory Health Board. Registered Voter? Yes r No Current resident of the city? Yes r No 26 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Thomas Rosales Page 2 of 4 Hispanic Ethnicity Male Gender Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. 14 I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. w I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Thomas Rosales Page 3 of 4 Board -specific questions (if applicable) Thomas Rosales Page 4 of 4 City Of Corpus Christi LEADERSHIP COMMITTEE FOR SENIOR SERVICES BOARD DETAILS OVERVIEW SIZE 15 Seats TERM LENGTH 2 Years TERM LIMIT 6 Years The Leadership Committee for Senior Services assists the Senior Community Services (SCS) division staff in the development of comprehensive senior citizens program plans; to advise the SCS division staff of the needs for services according to locally conceived priorities; to review and evaluate SCS operations; to increase recognition of volunteers and public awareness of the division by coordinating and planning special events; and to coordinate and plan fund raising activities to benefit SCS division goals. DETAILS COMPOSITION Fifteen (15) members representing the following categories: 2 - Senior Center participants, 3 - Direct service agencies, and 10 - Community representatives. Initially, eight (8) members shall be appointed for a term of one-year and seven (7) members shall be appointed for a term of two -years. CREATION / AUTHORITY Chapter 2, Administration, Article IV, Division 15, Code of Ordinances (Ordinance No. 024683, 12/11/01); Ord. No. 028537, 3/30/10. MEETS 1st Thursday of every month at 3:30 p.m. at various sites TERM DETAILS Two-year staggered terms. DEPARTMENT Parks and Recreation Department COMMITTEE/ SUBCOMMITEE N/A AGENDAS OTHER INFORMATION LEADERSHIP COMMITTEE FOR SENIOR SERVICES Page 1 of 1 Leadership Committee for Senior Services Members March 21, 2017 Ten (10) vacancies with terms to 2-1-18 and 2-1-19 representing the following categories: 6 - Community Representatives, 2 - Direct Service Agency Representatives, and 2 - Senior Center Participants. (Note: The Leadership Committee for Senior Services is recommending the reappointments of Ginger Bryant (Senior Center Participant), Maria Elena Flores (Community Representative), Theresa Garcia (Direct Service Agency Representative), Willie Hardeman, Sr. (Community Representative) and Denise Villagran (Community Representative). They are also recommending the new appointments of Monica Hansen (Community Representative), George Berry (Community Representative), Meng Zhao (Community Representative), Katherine Heslip (Senior Community Participant) and Eva Bell (Direct Service Agency Representative). Name Board Name Status District End date Cate:. Position Attendance Ginger Bryant LEADERSHIP COMMITTEE FOR SENIOR SERVICES Seeking reappointment District 2 1 02/01/17 Senior Center Participant Maria Elena Flores LEADERSHIP COMMITTEE FOR SENIOR SERVICES Seeking reappointment District 4 2 02/01/17 Community Representative Vice -Chair 100% 8/8 meetings Theresa Garcia LEADERSHIP COMMITTEE FOR SENIOR SERVICES Seeking reappointment District 5 1 02/01/17 Direct Service Agency Representative Secretary 50% 4/8 meetings (4 exc.) Willie Hardeman, Sr. LEADERSHIP COMMITTEE FOR SENIOR SERVICES Seeking reappointment District 5 2 02/01/17 Community Representative Member 57% 4/7 meetings (2 exc.) Denise Villagran LEADERSHIP COMMITTEE FOR SENIOR SERVICES Seeking reappointment District 4 1 02/01/17 Community Representative Chair 63% 5/8 meetings (3 exc.) Rodney Buckwalter LEADERSHIP COMMITTEE FOR SENIOR SERVICES Resigned District 3 1 02/01/18 Community Representative Member Robert Irwin LEADERSHIP COMMITTEE FOR SENIOR SERVICES Not seeking reappointment District 4 2 02/01/17 Community Representative Member Joshua C. Lawrence LEADERSHIP COMMITTEE FOR SENIOR SERVICES Not seeking reappointment District 5 1 02/01/17 Direct Service Agency Representative Member Henry Savoy LEADERSHIP COMMITTEE FOR SENIOR SERVICES Met six-year term limitation District 4 3 02/01/17 Community Representative Member Vacant LEADERSHIP COMMITTEE FOR SENIOR SERVICES 1 02/01/18 Senior Center Participant Member 100% 8/8 meetings Yvonne Solis Recio LEADERSHIP COMMITTEE FOR SENIOR SERVICES Active District 3 1 02/01/18 Community Representative Member Patricia A. O'Brien LEADERSHIP COMMITTEE FOR SENIOR SERVICES Active District 4 1 02/01/18 Community Representative Member Joanne Garcia LEADERSHIP COMMITTEE FOR SENIOR SERVICES Active District 2 1 02/01/18 Direct Service Agency Representative Member Merejildo Sonny G. Fierro LEADERSHIP COMMITTEE FOR SENIOR SERVICES Active District 2 1 02/01/18 Community Representative Member Peggie A. Lewis LEADERSHIP COMMITTEE FOR SENIOR SERVICES Active District 3 1 02/01/18 Community Representative Member Name MM.- District Ern. lo er Work AddressPsk Work Phone Eva M. Bell Community Representative or Direct Service Agency LEADERSHIP COMMITTEE FOR SENIOR SERVICES District 5 Texas A&M University -Corpus Christi 6300 Ocean Drive, Island Hall 350 Corpus Christi TX 361-825-5939 Representative George A. Berry LEADERSHIP COMMITTEE FOR SENIOR SERVICES District 5 Retired -Military and Law Enforcement 361-533-2606 Community Representative Leadership Committee for Senior Services Applicants March 21, 2017 Monica Hansen LEADERSHIP COMMITTEE FOR SENIOR SERVICES District 5 Kidney Specialists of South Texas 1521 5. Staples, Ste. 601 Community Representative or Direct Service Agency Corpus Chriti TX 361-887-8451 Representative Community Representative Katherine K. Heslip LEADERSHIP COMMITTEE FOR SENIOR SERVICES District 2 Retired -United States Postal Service or Senior Center Participant Meng Zhao LEADERSHIP COMMITTEE FOR SENIOR SERVICES District 5 Texas A&M University -Corpus Christi 6300 Ocean Dr., IH Rm 350A Corpus Christi TX 361-825-3279 Community Representative BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Feb 11, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Dr. Prefix Eva First Name Email Address M Bell Middle Initial Last Name Which Boards would you like to apply for? LEADERSHIP COMMITTEE FOR SENIOR SERVICES Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Texas A&M University -Corpus Christi Employer 6300 Ocean Drive, Island Hall 350 Work Address - Street Address and Suite Number Corpus Christi Work Address - City Texas Work Address - State 78412 Work Address - Zip Code 1111.0ms Alternate Phone Practitioner in Practice collaborating with Dr. Nestor H. Praderio Dr. Eva M Bell Page 1 of 4 (361)825-5939 Work Phone eva.bell@tamucc.edu Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) Highest education level: Doctor of Nursing Practice (DNP) In dissertation for Ph.D. in Nursing Registered Voter? r• Yes r No Current resident of the city? 'Yes` No 24 If yes, how many years? EMB CV 02102017.docx Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Dr. Eva M Bell Page 2 of 4 Female Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. V I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Dr. Eva M Bell Page 3 of 4 Board -specific questions (if applicable) Question applies to LEADERSHIP COMMITTEE FOR SENIOR SERVICES. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * i� Direct Service Agency Dr. Eva M Bell Page 4 of 4 CURRICULUM VITAE Eva M. Bell EM Education Degree Dates Major PhD 05 / 2013 Nursing In progress DNP 05 / 2010 Doctor of Nursing Practice Post -Masters Certificate MSN BSN AAS AS Elective Courses Diploma GED 05 / 2001 Psychiatric Mental Health Clinical Nurse Specialist (PMH CNS) 05 / 1998 12 / 1993 05 / 1991 05 / 1990 1989 07 / 1976 05 / 1975 Family Nurse Practitioner BSN ADN Associate in Science Electives Legal Secretary GED Certificate Doctor of Nursing Practice (DNP) Capstone Concepts of Mental Health in the Primary Care Setting Professional Licensure / Certifications /Affiliations Institution and Location Duquesne University Pittsburgh, PA Duquesne University Pittsburg, PA Duquesne University Pittsburgh, PA Texas A&M University- Corpus Christi Corpus Christi, TX Texas A&M University- Corpus Christi Corpus Christi, TX Victoria Community College Victoria, TX Victoria Community College Victoria, TX University of Houston Victoria, TX Hamilton Business College Mason City, Iowa State of Iowa Texas Board of Nursing Licensure Registered Nurse Advanced Practice Registered Nurse (APRN) Family Nurse Practitioner (FNP) Psychiatric Nurse Practitioner (PMHNP) American Nurses Credentialing Center National Board Certifications Family Nurse Practitioner (FNP -BC) Family Psychiatric Mental Health Nurse Practitioner (FPMHNP-BC) Adult Psychiatric Mental Health Nurse Practitioner (APMHNP-BC) Prescriptive Permits / Licensure Texas Department of Public Safety United States Drug Enforcement Agency Coastal Bend Regional Medical Center — Hospital Credentialed Academic Employment Dates 2012 — Present 2015 - 2016 2013 - 2014 1998 - 2012 1993 - 1998 Clinical Employment Dates 2012 - Present 1999 - 2012 1998 - 1999 1997 - 1998 1996 - 1997 1996 - 1996 1993 - 1996 1991 - 1994 1990 - 1994 Title Assistant Professor Graduate Assistant Graduate Assistance Adjunct Graduate Faculty Part -Time Faculty Rank or Title PMHNP / FNP PMHNP / FNP FNP Psychiatric Supervisor Psychiatric Consultant Team Leader Intake Coordinator, Temporary Charge, Director Home Health Psychiatric Charge Pool RN Institution or Business Texas A&M University - Corpus Christi Corpus Christi, TX Duquesne University Pittsburgh, PA Duquesne University Pittsburgh, PA Texas A&M University - Corpus Christi Corpus Christi, TX Corpus Christi State University Corpus Christi, TX Institution or Business APRN, Self-employed consultant Psychiatric Consulting Services Abelia Family Practice and Urgent Care Bee Area / Columbia Home Care Bayside Home Health Bay View Psychiatric Hospital Charter Behavioral Health Systems Victoria Regional Medical Center Citizen's Medical Center TEACHING Courses Taught at Texas A&M University -Corpus Christi Graduate NURS 5316 NURS 5324 NURS 5329 NURS 5351 NURS 5624 NURS 5644 Introduction to Advanced Practice Role Development Health Assessment for Advanced Practice ** Differential Diagnosis, Diagnostic Tests Advanced Pharmacological Concepts for the Nurse Educator Advanced Health Assessment and Differential Diagnosis ** Management Acute and Chronic Illness I ** NURS 5645 NURS 5746 Undergraduate NURS 4564 NURS 4564 Management Acute and Chronic Illness II Integrated Clinical Practice ** Didactic and Clinical Clinical across all FNP courses Nursing Care of the Psychiatric Patient ** Nursing Care of the Psychiatric Patient - E Line ** Didactic and Clinical ** Other Scholarly Teaching, Mentoring, and Curricular Achievements 2015 — 2016 2015 - 2016 2013 — 2014 2006 -2007 2004-2006 Presentations Faculty Mentor — Denise DeLaRosa TAMU-CC Graduate Assistant Duquesne University Graduate Level. Clinical Prevention Pittsburgh and Population Health Management Graduate Assistant Duquesne University Assisted RA Symphonology Theory / Pittsburgh Bioethics/Theory Research Undergraduate Research PMH NP Preceptor University of Texas - Arlington GNP Preceptor University of Texas - Galveston SCHOLARSHIP / CREATIVE ACHIEVEMENTS Bell, E. (2016, October 20). Happy birthday NAMI-GCC! Organizational information & updates: National/state/local —An overview from the NAMI National Convention 2016. Invited podium. NAMI GCC. Corpus Christi, TX. Bell, E. & Zoucha, R. (2015, October 28-31). The meaning of mental illness and mental health for Mexican - Americans: A focused mini ethnography. Poster. Transcultural Nursing Society 4151 Annual Conference. Portland, OR. Barker, C., Bell, E., Day, C., Flournoy, D., Miller, D., Sefcik, E. (2015, August). Video -enhanced Objective Student Clinical Evaluation (OSCE) in graduate nursing education. Poster. Faculty Forum. TAMU-CC. Corpus Christi, TX. Bell, E. (2014, January 17). Introduction to the role of the case manager. Staff development speaker. Behavioral Health Center of Nueces County. Corpus Christi, TX. Bell, E. (2013, June 15). Concepts of psychiatric mental health in the PCP setting. Poster. Advancing Nursing Practice. TAMU-CC in association with CBAPRN. Corpus Christi, TX. Bell, E. (2011, June 3). Long-term care activity director update: Programming through dimensions to benefit individuals with dementia. Invited speaker for staff development CE program. Victoria College Continuing Education. Consortium for Therapeutic Recreation / Activity Director Certifications, Inc. Gonzales, TX. Bell, E., Jackson, C., Jain, R., & Jain, S. (2010, November). Cross communication and collaborative care: How to talk to colleagues. Invited podium. U.S. Psychiatric and Mental Health Congress Conference and Exhibition 2010. Orlando, FL. CME LLC. Bell, E. (2010, November). Community support groups: Design and implementation — Example of face to face programs. Invited podium. U.S. Psychiatric and Mental Health Congress Conference and Exhibition 2010. Orlando, FL. CME LLC. Bray, C., Olson, K., Bell, E., & Enriquez, S. (2007, October 24-28). Restless leg syndrome — Facts and fallacies. Invited podium. American College of Nurse Practitioners' Annual Meeting. San Antonio, TX. Olson, K., Bray, C., & Bell, E., Enriquez, S. (2007, September). Restless leg syndrome. Invited podium. Presentation: Texas Nurse Practitioners Annual Meeting. Dallas, TX. Bell, E. (October 30, 2004). The confused elder: Untying the knot of depression, dementia, and delirium: Late life depression. Invited podium. TNA District 17 Conference. Corpus Christi, TX. Bell, E. & Praderio, N. (April 25, 2003). Management of depression. Advancing Excellence in Clinical Practice Conference. Invited podium. Sigma Theta Tau, Eta Omicron Chapter. Corpus Christi, TX. Praderio, N. & Bell, E. (2004). Psychotropic use in the long-term care setting. Invited podium. Texas Department of Human Services. State Surveyors Regional Meeting. Corpus Christi, TX. Bray, C., Sefcik, L., & Bell, E. (2002). Untying the knot: Depression, dementia, and delirium. Invited podium. Sigma Theta Tau, Eta Omicron Chapter Meeting. Texas A&M University- Corpus Christi, Corpus Christi, Texas. Editorial Boards / Manuscript Reviewer Reviewer. (2016). Rhoads & Peterson. Advanced Health Assessment and Diagnostic Reasoning, Second Edition. Jones & Bartlett Learning. Reviewer. (2015). Hamric: Advanced Practice Nursing, 5th edition. Elsevier. Reviewer. (2013). Conference Podium Presentations and Abstracts. CBAPRN Honors / Awards / Memberships Suicide Coalition National Alliance for Mental Illness (NAMI) NAMI Greater Corpus Christi (NAMI-GCC) DUSON Graduate Student Travel Award (Research Presentation Fall 2015), $500 SOAR/ELITE Award, $2500 APDReL Award, $1500 Golden Key International Honor Society Sigma Theta Tau International Honor Society (STTI), Eta Omicron National Organization of Nurse Practitioner Faculty (NONPF) Transcultural Nursing Society (TCNS) American Association of Nurse Practitioners (AANP) American Association of Colleges of Nursing (AACN) Texas Nurse Practitioners Coastal Bend Advanced Practice Registered Nurses (CBAPRN) Nursing Merit Scholarship — 2008 TAMU-CC Alumni Association Duquesne University Alumni Association Fellowships / Grants 2014 -Present 2012 -Present Scholarly Works Texas A&M University -Corpus Christi Faculty Innovation Grant: Using Objective Student Clinical Evaluation (OSCE) in Graduate Nursing Education ($19,100). Co -PI. Integrative Care Model for Behavioral Health. Texas Health and Human Services Commission Delivery System Reform Incentive Payment Projects. ($6000). Project team member. Day, C., Barker, C., Bell, E., Sefcik, E., & Flournoy, D. 2016. Flipping the OSCE: A teaching innovation in graduate nursing education. Manuscript in progress. Day, C., Barker, C., Bell, E., Sefcik, E., & Flournoy, D. 2016. Video Enhanced Objective Structure Clinical Examination in Graduate Nursing Education. Journal of Nursing Education. Not accepted. Barker, C., Day, C., Bell, E., Flournoy, D., Sefcik, E. 2015. Video Enhanced Online Objective Structured Clinical Examination in Graduate Nursing Education. Island Days Forum Days Poster Presentation. Poster presentation. Bell, E. 2016. The meaning of mental illness and mental health for older Mexican Americans: An ethno- geropsychiatric ethnography. PI. Proposal in progress. Bell, E. & Zoucha, R. 2016. Mental health and mental illness for older Mexican Americans: An integrative literature review. In progress. Bell, E. 2015. The meaning of mental illness and mental health for Mexican -Americans: A focused mini ethnography. PI. Completed qualitative study. Barker, C. & Bell, E. 2013. Can clinical data contained within an electronic database for FNP students be utilized to predict or improve student outcomes? Co -PI. In progress. Sefcik, L., Barker, C., & Bell, E. 2016. Video -enhanced Objective Student Clinical Evaluation (OSCE) in Graduate Nursing Education: Measurement of Critical Thinking, Anxiety, and Self-efficacy. Co -PI. In progress. Bell, E. (2016). Challenge of the unspoken: The influence of Mexican -American cultural beliefs and mental health on the health history. Manuscript revisions planned. PROFESSIONAL SERVICE Service Activities for the University, College, Profession, Community Service to the University Activities Academic Integrity Committee University Academic Standards Grievance Committee Student Hearing and Appellate Committee White Coat Ceremonies Recognition Ceremonies Commencements (at least 2 per year) Service to the College Activities DNP Faculty Liaison (2 students) APA Task Force and Tutorials DNP Handbook Committee Subcommittees Rights and Responsibilities DNP Project Appendices Search Committee DNP Core Curriculum Committee Course Evaluations Task Force Search Committee PATH for South Texas DNP Admissions Process Committee Higher Education Fair, Driscoll Children's Hospital Program to Advance the Health of South Texans Advisory Board Meeting DNP Core Faculty Committee DNP Planning Committee Health Policy and Cultural Diversity Task Force College Research Enhancement Committee Recognition Ceremonies White Coat Ceremonies Commencements (at least 2 per year) HCAD Objectives Work Group Academic Affairs Retreat, Invitation representing COHNS Graduate Nursing Continuing Nursing Education Committee FNP Committee FNP Skills Seminars MSN Orientation Participant Graduate Faculty Committee Undergraduate Faculty Committee Undergraduate Selfie & Interview Faculty of the Whole Committee Graduate APG Committee Dates of Service 08/2014-08/2017 08/2014-08/2017 08 / 2015 — 08/2017 2014 - Present 2012 - Present 2008 - Present Dates of Service 2016 - Present 2016 2016 - Present Spring 2016 2014 - Present 2015 Summer/ Fall 2015 2014 - Present 2014 - Present 04/02/2015 2014 - Present 04 / 15 /2014 2012 - Present 2012 - Present 2014 - 2014 2014 — Present 2012 - Present 2014 — Present 2008 - Present 2014 - 2014 06/13/2014 2013 - 2017 2012 — Present 1998 — Present 2012 - Present 2012 - Present 2012 — 2012 2015 - 2016 2012 - Present 2012 - Present Student Handbook Committee NURS 5315 Task Force E -Line Committee 2013 - 2014 2014 - Present 2012 - 2013 Service to the Profession Activities Dates of Service Corresponding Secretary, CBAPRN 2016 - Present Alcoholics Anonymous Luncheon for Professionals 2015 Suicide Awareness and Prevention Community Planning Committee 2014 - Present Aspects of Asthma Conference. Nurse Planner 2014 Nursing Jurisprudence and Ethics. Nurse Planner 2014 - 2014 Beyond the Wrinkles: Meeting the Challenges of Care. Nurse Planner 2014 - 2014 Coastal Bend Advanced Practice / TAMU-CC Advancing Nursing Practice Conference. Content Expert, Nurse Planner 2012 - 2013 ANCC. Content Expert Panel Registry 2012 - 2016 Psychiatric Consulting Services, Consultant 1999 - Present Includes: Professional consultations, seminars and in -services 1999 - Present Service to the Community Activities Dates of Service Second Suicide Prevention Symposium Committee 2016 NAMI National Convention — Region 9 Representative (Denver, CO) 2016 First Annual Suicide Prevention Symposium Committee 2015 Suicide Awareness and Prevention Community Planning Committee 2014 - Present Suicide Coalition Committee 2014 - Present NAMI Greater Corpus Christi (GCC) — Steering Committee 2015 — Present Leadership / Operations Committee 2015 - Present Integrated Behavioral Healthcare: TAMU-CC Project Team Member / 2013 - 2014 Consultant for the Behavioral Health Center of Nueces County Psychopharmacology: Yearly Foster Parental Updates. Burke Center. 2011 - 2014 (2-3per year) Katrina Refugee Volunteer, PMHNP 2005 Alzheimer's Disease Support Group: Dementia and Treatment (Aransas Pass) 12 / 16 / 2010 Psychiatric provider / consultant. Independent PMHNP. Private, clinic, and residential psychiatric care practice, consultation, and in -services. 1999 - Present Significant Professional Development Activities State and national RN and APRN licenses, certifications, permits, and continuing activities maintained Certificate of Professional Development in Best Practices for Online Course Development Certificate of Course Design and Development. Certificate of Online Course Delivery and Review Registered with the National Faculty Educational Initiative Collaborative Institutional Training Initiative (CITI) Transcultural Study Abroad / Immersion Experiences Italy, 2015 (Duquesne University — Health Systems and Ethnography) Canada, 2009 (Duquesne University — Health Systems) Mexico, 2004 (Bee Area Community College & Health Professionals — Health Systems) BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Feb 28, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile George A Berry Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? LEADERSHIP COMMITTEE FOR SENIOR SERVICES Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone retired military and law enforcement LCDR USNR (ret); DSS(A) Employer Job Title Work Address - Street Address and Suite Number Work Address - City Work Address - State Work Address - Zip Code George A Berry Page 1 of 4 (361) 533-2606 Work Phone georgeaberry@gmail.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: None. Volunteer at UMM Loaves & Fishes. Volunteer for service projects with Rotary Club. Education, Professional and/or Community Activity (Present) BA, Business & Public Administration, George Mason Univ., Fairfax, VA Post -Baccalaureate, Accounting, Texas A&M Univ., Corpus Christi, TX numerous military and L.E. training courses Aviation Safety Officer course, Naval Postgraduate School, Monterrey, CA Registered Voter? Yes r No Current resident of the city? t7 Yes ` No 28 If yes, how many years? Resume B.docx Upload a Resume Please upload any additional supporting documents Demographics George A Berry Page 2 of 4 Caucasian/Non-Hispanic Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. ISI I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. w I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. I Agree George A Berry Page 3 of 4 Board -specific questions (if applicable) Question applies to LEADERSHIP COMMITTEE FOR SENIOR SERVICES. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * None of the Above George A Berry Page 4 of 4 GEORGE A. BERRY Energetic, innovative, tenacious and meticulous — these are attributes I have heard from co-workers, from supervisors and from commanding officers in the military. I want to apply these talents as I contribute to an enterprise. When I transitioned from the military to counter -drug operations, I displayed technical expertise with high-tech sensors and command -and -control communications. I volunteered for missions, including operations in Central and South America. When drug smugglers changed tactics, I was a team player in adapting interdiction procedures to thwart them. While based at our center in Corpus Christi, I took courses at Texas A&M University; then management tasked me to analyze organization expenses, and I found efficiencies that saved more than $ 10,000 per month — on going. After retirement from U.S. Customs, I worked as a Research Assistant/Analyst for a Private Investigator for two years. I was able to delve into cases and find answers, mainly through analysis of data from computer searches and courthouse research. My efforts led to successful determinations of cause factors in construction deficiencies, in locating missing persons, and in the arrest of one rapist. I was tasked to be a Process Server, and I had an 85% success rate vs. "dead beat" dads. For Operation Desert Shield/Desert Storm, I was a recalled Reservist assigned to Aviation Logistics. I spent extra hours studying the capabilities and location of all assets for the mission. The Navy Achievement Medal recognized me for flexible and innovative problem solving. My main employment for the last 8 years has been as a commercial Notary Public. Under contract to Title Companies, I meet with individuals who are refinancing their homes or investment properties. As necessary, I answer their questions about documents. I have also assisted residents of a retirement home with notarizations; usually I do these pro bono. I was a Nueces County deputy voter registrar; will renew soon. My education includes a Business and Public Administration degree (1970) and a Post -Baccalaureate degree in Accounting (1994). I have taken additional courses in Ports and in Foreign Trade. Interests and Memberships: 2011— present twice weekly volunteer at Loaves & Fishes; annual Feast of Sharing on Christmas Eve 2008 — 2013 Volunteer with United Methodist Committee on Recovery helping disaster victims after fires, floods and hurricane. 2003 — 2013 Coordinator, Neighbors On Watch 2007 — present Corpus Christi Christian Business Association, member; recently appointed to Board of Directors 1968 — 1970 Tau Kappa Epsilon fraternity, Secretary and Treasurer 2009 — 2017 Board of Directors, Oso Townhome Home Owner Association 1991-1996 Member, Corpus Christi Chamber of Commerce International Trade Committee representing U.S. Customs 1992 — 2014 Member, Regional Safety Officer (rapier) and Treasurer for local chapter of the Society for Creative Anachronism (reenactor of Renaissance sword fighting) Language: Basic Spanish (rusty) Computer: Experienced with Microsoft Word and Excel. Proven success in web research while working in Law Enforcement and as a Research Assistant to a Private Investigator. (Note: successful after being trained.) BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 02, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Prefix Monica First Name Middle Initial Email Address Hansen _ Last Name Which Boards would you like to apply for? LEADERSHIP COMMITTEE FOR SENIOR SERVICES Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone Kidney Specialists of South Texas Administrator Employer Job Title 1521 S. Staples Ste 601 Work Address - Street Address and Suite Number Corpus Chriti Work Address - City TX Work Address - State 78413 Work Address - Zip Code Monica Hansen Page 1 of 4 361-887-8451 Work Phone hansenm@ksst.cc Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) Bachelor Degree- Texas A&M Corpus Christi MGMA TMGMA CBMGMA Usher at St John The Baptist Catholic Church Registered Voter? r• Yes r No Current resident of the city? r: Yes ` No 58 If yes, how many years? Monica s resume.pdf Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Monica Hansen Page 2 of 4 Female Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Monica Hansen Page 3 of 4 Board -specific questions (if applicable) Question applies to LEADERSHIP COMMITTEE FOR SENIOR SERVICES. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * i� Direct Service Agency Monica Hansen Page 4 of 4 Monica Hansen Professional Profile Actively administering a 4 physician gastroenterology practice for eight (8) years as well as being the accountant for 3 ophthalmologists and 1 optometrist for four (4) years. During this time I have acquired and learned the need for continual education and preparedness in the skills listed: • The ability to exercise appropriate leadership styles and behavior • Employ critical thinking and problem solving skills which are necessary in the ever changing environment of medical field due to government regulations of the healthcare reform. • Understanding of financial analysis, reimbursement techniques and strategies, and financial outcome measures. (ICD -10) • Knowledge of liability and compliance regulation, the ability to employ strategies to mitigate risk, avoid malpractice and plan for disaster. • Information management of the electronic medical records -- using it to promote managerial and clinical efficiency and plan for future needs. Professional Experience Abdominal Specialists of South Texas, Corpus Christi, TX 78404 1/1/2008 thru Current Administrator Achievements: • Quality Measures Reporting (Meaningful Use & PQRS) Transitioning all staff members including doctors from paper charts to electronic medical records • Making the transition from paper to electronic medical records including the training of doctors and staff members. • ICD -10 transition • Reporting ASC Meaningful Use Measures Responsibilities: • Currently monitoring Value Base Measures and continuing to monitor PQRS and Meaningful Use measures • Financial reporting and strategies to improve profits by monitoring billing and collections • Payroll, Payroll Taxes, Property Taxes • Human resources • Supervision of the billing and collections department • Profit Sharing Plan and 401(k) documentation • Insurance contracts • Call Schedules • Physician recruiting • Responsible for implementation of IT network and EMR interface functionality as well as Security Risk Policies, HIPAA guidelines, and ©SHA requirements. • Successfully running an ASC Monica Hansen South Texas Eye Consultants, PLLC, Corpus Christi, TX Apr 2004 thru jan 2008 Continued to work in the evenings from Jan 2008 to Oct 2014 until a replacement was found Accountant Responsibilities: • Responsible for all financial activities for 2 companies, consisting of a medical office and a retail optica! outlet • Set up inventory process for Optical Outlet for proper accountability of items • Prepare Financial Reports for Partnership in both Accrual and Cash Basis • Work with CPA for Year End documentation necessary for tax reporting • Payables, Payroll Taxes, Quarterly Returns, W2's and 1099's, Property Taxes • Gather and process all information for Profit Sharing Plan. • Reported on Capitated Insurance information to see if payments would meet expectations (Medicare Rates) • Work with Commercial Insurance Agents • Present financials and issues to Doctors at Quarterly Board Meetings. New Marketing Services, Corpus Christi, TX 2003 - Apr 2004 Marketing Representative Responsibilities: • Market eight different companies to physicians in Corpus Christi and the surrounding areas. Covering nine counties • Maintain database of 1733 contacts: Doctors, Home Health Agencies, Physical Therapy Companies, Case Managers/Discharge Planners of the Local Hospital • Reporting for Companies represented • Point of contact for companies and the other sales representatives • Created Marketing Tools for companies Sanborn's Travel Service, Corpus Christi, TX 1982 - 2003 Manager of the Accounting Department Responsibilities: • Manage, supervise Accounting Department: duties of A/R, A/P and G/l. • Prepare all Financial Reports and Budget Reports after verification of accuracy • Participate in Hiring of New Employees • Process Payroll, Payroll Taxes, Quarterly Reports, W2's and 1099's • Gather and provide all information for 401k Contribution to Investment Management Company • Create reports for corporate, state and internal use by exporting data from Accounting System to Excel Spreadsheets • Reconciliation of Bank Statements and all Chart of Accounts • Travel for training on new enhancements and instruct others. • Written and oral communication skills • Creative thinking and oral communication skills Monica Hansen Education Texas A&M Corpus Christi - Corpus Christi, TX B.A., Business Administration Major: Accounting, Minor: Marketing 1983 Organizations AGA MGMA Coastal Bend MGMA TX MDMA Usher at St. John the Baptist Catholic Church References References are available upon request. Monica Hansen BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Feb 16, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Katherine K Heslip Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? LEADERSHIP COMMITTEE FOR SENIOR SERVICES Street Address Suite or Apt City State Postal Code District 2 What district do you live in? Primary Phone Alternate Phone Retired form U.S.P.S. Letter Carrier Employer Job Title N/A Work Address - Street Address and Suite Number N/A Work Address - City N/A Work Address - State N/A Work Address - Zip Code Katherine K Heslip Page 1 of 4 N/A Work Phone N/A Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: RSVP AT Oval Williams Senior Center ,(N A L C) Union representative.i fought for people rights, I was a office of the Union..i was able to go to National and State Meeting for training.as la let carriers sorted and delivered mail . I work with the youth department at my church supervising summer trip to Florida, Bandera Texas, Ohio and I organized a trip to Virginia, Maryland, New York and Washington Dc. Education, Professional and/or Community Activity (Present) For H Moody High School (Diploma) Accounting, Computers, and Sewing and i was on the Drill Team Durham Business College (Certification) Computers, Accounting, and Filing. Del Mar College (Certification) Computers, Accounting. and Failing Registered Voter? Yes r No Current resident of the city? II Yes r No 64 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Katherine K Heslip Page 2 of 4 African American Ethnicity Female Gender Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. 14 I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. w I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Katherine K Heslip Page 3 of 4 Board -specific questions (if applicable) Question applies to LEADERSHIP COMMITTEE FOR SENIOR SERVICES. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * Senior Center Participant Katherine K Heslip Page 4 of 4 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Feb 11, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Dr Prefix Meng First Name Email Address Middle Initial Zhao Last Name Which Boards would you LEADERSHIP COMMITTEE like to apply for? FOR SENIOR SERVICES Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Texas A&M University Employer 6300 Ocean Dr., IH Rm 350A Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78412 Work Address - Zip Code Alternate Phone Assistant Professor Job Title Dr Meng Zhao Page 1 of 4 361-825-3279 Work Phone meng.zhao@tamucc.edu Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: N/A Education, Professional and/or Community Activity (Present) Education: Highest degree and most recent Degree Dates Major Institution and Location doctoral. 12/2011 Nursing University of North Carolina at Chapel Hill (UNC) bachelors 7/1996 Nursing Shandong University, China Professional/Community Activity: 1. Registered Nurse A(RN): Texas December 2011 -present (No. 811337) 2. Teach both graduate and undergraduate courses at Texas A&M University, Corpus Christi, TX, Assistant Professor 3. Ongoing research grant: Texas Research Development Fund(Role, PI) . $20,000. September 2016 -August 2017. Awarded by the Texas A&M University at Corpus Christi. "Integrating Smart Phone Application to Facilitate the Asian American Women's Screening Mammography Utilization" 4. Serve on Texas A&M University -Corpus Christi IRB Committee, Research Enhancement Committee (both University and College of Nursing& Health Science levels), CONHS Chinese Collaboration liason 5. Journal reviewer: Global Journal of Health Science, British Journal of Education, Society& Behavioural Sicence, and Journal of Nursing Measurement 6. Abstract reviewer: Southern Nursing Research Society (SNRS) 7. Ad Hoc Committee member: Asian American Pacific Islander Nurses Association (AAPINA) 8. Professional membership: Sigma Theta Tau International Honor Society of Nursing, American Nurse Association(ANA), Texas Nurse Association(TNA), SNRS, AAPINA Registered Voter? cYes (7No Current resident of the city? Yes c No 5 years If yes, how many years? Dr Meng Zhao Page 2 of 4 Curriculum Vitae Meng Zhao 02 2017.doc Upload a Resume Please upload any additional supporting documents Demographics Asian or Pacific Islander Ethnicity Female Gender Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. W I Agree Dr Meng Zhao Page 3 of 4 Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. 1? I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fJ I Agree Board -specific questions (if applicable) Question applies to LEADERSHIP COMMITTEE FOR SENIOR SERVICES. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * 17 None of the Above Dr Meng Zhao Page 4 of 4 CURRICULUM VITAE Meng Zhao, PhD, RN Education: Highest degree and most recent Degree Dates Major Institution and Location doctoral. 12/2011 Nursing University of North Carolina at Chapel Hill (UNC) bachelors 7/1996 Nursing Shandong University, China Dissertation The role of culture on health beliefs and screening mammography practice among Chinese -born immigrant women in the United States: An ethnographic approach Committee: Noreen Esposito (Advisor); Deborah K. Mayor; Suzanne Thoyre; SeonAe Yeo; William S. Lachicotte Professional Certification/Licensure Registered Nurse (RN). Texas December 2011 -present (No. 811337) North Carolina. June 2006 -June, 2010 (No. 209469) California. January 2006-Feburary 2012 (No. 671870) Guangdong, China. July 1996 -July, 2006. Employment Academic Employment- Reverse chronology Dates Most current first Title Institution or Business 09/01/2012 -present Assistant Professor Texas A&M University at Corpus Christi, College of Nursing& Health Sciences 08/01/2011- Assistant Professor University of Texas Health Science 08/30/2012 Center at Houston School of Nursing 08/01/2005- Teaching/Research Assistant University of North Carolina at Chapel 08/30/2008 Hill School of Nursing 09/01/1997- Lecturer/Assistant Lecturer Sun Yat -Sen University School of 07/31/2004 Nursing. Guangdong, China Clinical Employment Dates Most recent 08/1996-07/ 1997 08/1997-07/ 2004 (2-3 months/year) Rank or Title Staff Nurse Staff Nurse Meng Zhao Institution or Business Sun Yat -Sen University, The First Affiliated Hospital, China Sun Yat -Sen University, The First Affiliated Hospital, China TEACHING Other Scholarly Teaching, Mentoring and Curricular Achievements Most current first A. Teaching at Texas A&M University, Corpus Christi, TX, Assistant Professor, (2012 -present) Graduate Courses Nurs5315 Diverse Health Care Environments Nurs5310 Science in Nursing. Nurs 5314 Research Methods in Advanced Nursing Practice Undergraduate Courses Nurs4318 Nurses as Research Consumer Nurs4318 Nurses as Research Consumer (RN -BSN) W01 Nurs3342 Use of Pharmacology Principles W02/W04 B. Teaching at University of Texas Health Science Center, Houston, TX, Assistant Professor (2011-2012) Undergraduate Courses Pathophysiology Reproductive Health Care C. Teaching at University of North Carolina, Chapel Hill , NC, Teaching Assistant (2004-2010). Undergraduate Courses Pathophysiology Pharmacology across the Life Span Discipline of Nursing, Part II Discipline of Nursing, part III 2 Meng Zhao Family centered genomic health care D. Teaching at Sun Yat -Sen University, Guangdong, China, Lecturer/Assistant Lecturer (1996-2004). Undergraduate Courses Geriatric Nursing Medical & Surgical Nursing Health Assessment Community Health Nursing SCHOLARSHIP/CREATIVE ACHIEVEMENTS Refereed Publications or Other Creative Achievements Articles- Most recent first. APA format Zhao, M. & Conard, P. (2016). Content Validity of Cultural Health and Screening Mammography Belief Scale among Asian American Women. Journal of Nursing Measurement. 24(3), 356-364. Zhao, M. & Conard, P. (2015). Understanding health beliefs and practices in the cultural context: Chinese -born immigrant women in the United States. International Journal of Nursing Didactics, 5(1), 31-38. Zhao, M. & Ji, Y. C. (2014). Challenges of Introducing Participant Observation to Community Health Research. ISRN Nursing. DOI: 10.1155/2014/802490. Zhao, M., Esposito, N., & Wang, K. F. (2010). Cultural beliefs and attitudes towards health and health Care among Asian -born women in the United States. Journal of Obstetric, Gynecologic, & Neonatal Nursing, 39 (4): 370-385. Zhao, M. & Zhang, J.(2001). The study of the incidence and relation factors of geriatric depression. Chinese Primary Health Care, 15(10), 54-55. Zhao, M., Zhang, J. & Li, Y.J. (2001). Happiness of the community seniors and its related factors -Reports from 182 participants. New Chinese Medicine, 12, 753- 60. Zhao, M., Zhang, J., &You, Z.Y. (1999). The predictors for the incidence rate of depression among pregnant women. Chinese Journal of Maternal and Child Health Care, 7, 429-30. Zhang, J., You, L.M. & Zhao, M. (2000). The problems and suggestions to the clinic nursing education for undergraduate students. Heilongjiang Nursing Journal, 6(11), 34. Zhang, J., Chen, Q. & Zhao, M. (1999). The important role that community nursing plays in improving diabetic patient's quality of life. Chinese Primary Health Care, 7, 11. 3 Meng Zhao Zhang, J., Xin, D. G., Lin, Y. & Zhao, M. (2001). Studies of the related factor of postnatal depression. Chinese Journal of Behavioral Medical Science, 10(1), 56- 57 4 Meng Zhao Presentations at Professional Meetings- Most recent first • Content Validity of Cultural Health and Screening Mammography Belief Scale among Asian American Women. 2014 State of the Science Congress on Nursing Research, September, 2014, Oral presentation. PI: Meng Zhao, PhD, RN. • Cultural Beliefs and Attitudes toward Health and Health Care among Chinese -Born Immigrant Women: An Ethnographic Approach. 39t" Transcultural Nursing Society Conference, Oct 2013, Poster presentation" PI: Meng Zhao, PhD, RN • Learning Team Techniques through a Team Research Project in Undergraduate Research Education. 40th Annual National Conference on Professional Nurse Education and Development, Oct 2013, Poster presentation. PI: Meng Zhao, PhD, RN • Understanding Cultural Beliefs about health, health promotion, and breast cancer prevention among Chinese -born Immigrant Women. 2012 State of the Science Congress on Nursing Research, September, 2012, Oral presentation title. PI: Meng Zhao, PhD, RN • Seeking Knowledge and Information regarding Health: Pattern and Priority among Chinese Immigrant Women in the United Sates. 2012 State of the Science Congress on Nursing Research, September, 2012, Poster presentation. Co -PI: Meng Zhao, PhD, RN • Understanding Cultural Beliefs about health, health promotion, and breast cancer prevention among Chinese -born Immigrant Women. Midwest Qualitative Research Conference -June, 2012, Oral presentation. PI: Meng Zhao, PhD, RN Honors and Awards- Most recent first • 2014 AAPINA Summer newsletter featured researcher • 2013 TAMUCC Biennial Report featured researcher • 2012 TAMUCC Research Start-up Fund • 2008 National Coalition of Ethnic Minority Nurse Association Mentee Award for Mentor-Mentee Training Program. Awarded by the U.S. National Coalition of Ethnic Minority Nurse Association to train selected minority nursing graduate students for research and teaching in nursing. 5 Meng Zhao • 2006 Mary P. Speight Scholarship. Awarded by the University of North Carolina School of Nursing to selected exceptional nursing students. Fellowships • 2004 Graduate School Merit Scholarship. Awarded by the University of North Carolina at Chapel Hill Graduate School to exceptional first-year Ph.D. students. • 1991-1996 Xu Youhua Fellowship. Awarded by Shandong University to the most exceptional undergraduate nursing student (one student per year) to acknowledge the undergraduate study achievements. Grants- Most recent first. • Texas Research Development Fund(Role, PI) . $20,000. September 2016 - August 2017. Awarded by the Texas A&M University at Corpus Christi. "Integrating Smart Phone Application to Facilitate the Asian American Women's Screening Mammography Utilization" • Texas Research Development Fund PSIP Grants for Research Development. $2,500. September 2013- June 2014. Awarded by the Texas A&M University at Corpus Christi. • Research Enhancement Grant (Role, PI). $5,000. January 2013 -August 2013. Awarded by the Texas A&M University at Corpus Christi. "Cultural health and screening mammography belief scale: The development and pre -testing among Asian -American women" • Center for Faculty Excellence Travel Grant. $1,000. Oct 2013. Awarded by the Texas A&M University at Corpus Christi. 6 Meng Zhao • Dean's Research Award (Role, PI). $10,000. April 2012 -August 2012. Awarded by the University of Texas Health Science Center at Houston "The scale development of a culturally sensitive instrument for Asian American women's screening mammography practice" • Sigma Theta Tau International Honor Society of Nursing Small Grant (Role: PI). $500. October 2008. Awarded by the University of North Carolina Alpha Alpha Chapter of the Sigma Theta Tau International Honor Society of Nursing to assist selected Ph.D. students for research "The role of culture on health beliefs and screening mammography practice among Chinese -born immigrant women in the United States: An ethnographic approach" • Sun Yat -Sen University School of Nursing Research Fund, Guangzhou, China (Role: PI), October 2000 -October 2001. "The Role of Psychosocial Factors on Elder's Physical and Mental Health" • Guangdong Provincial Government Department of Science and Technology Research Fund Guangzhou, China (Role: Co -PI), October 2000 -October 2002. "Relationships between Psychosocial Variables and Pregnancy Outcomes" Scholarly Works in Progress- • Understanding Health Beliefs and Practices in the Cultural Context: Chinese -Born Immigrant Women in the United States (Paper in Preparation) • Barriers to the use of Screening Mammography among Asian American Women (Paper in Preparation) Other Research and Creative Achievements- Delete if none • Global Journal of Health Science. (journal reviewer) 09/01/2013 -present • British Journal of Education, Society & Behavioural 07/01/2014 -present Science (journal reviewer) • Developed the HESI Exam blueprint for the undergraduate students in Nurs4318 7 Meng Zhao • Developed the critique templates and rubrics in Nurs4318 • Developed the quizzes and the exams in Nurs4318 • Re -designed the learning modules in Nurs4318 • Developed the templates for the "middle range paper assignment" in Nurs5310 • Co -developed the "movie assignment" in Nurs5310 • Ways of Helping Project at the UNC School of Nursing. Chapel Hill, NC. July 2008 -December 2008. Conducted qualitative data collection, management, and analysis as research assistant • Parent/Child Partner Weight Control Project at UNC School of Nursing. Chapel Hill, NC. August 2007 -May 2008. Conducted on-site physical data (height, weight, BMI) and survey data collection and Developed the protocol for Actical (a portable physical activity monitor) activation and using as research assistant • SandBar Project at UNC School of Nursing. Chapel Hill, NC. May 2006 -May 2007. Conducted data collection and management using Microsoft Excel and Access for meta-analysis as research assistant • Biobehavioral Lab (BBL) at UNC School of Nursing. Chapel Hill, NC. August 2005 -May 2006. Conducted lab webpage and calendar updating and Assisted UNC School of Nursing researchers with recording and computer-based observational data analysis as research assistant • Center for Innovations in Health Disparity Research (CHIDAR) at UNC School of Nursing. Chapel Hill, NC. May 2005 -December 2005. Conducted research data management and analysis using SAS for CHIDAR researchers PROFESSIONAL SERVICE Service Activities for the Component, College, University- Most recent first Activities College • Research Enhancement Committee, CONHS Dates of Service 09/01/2014 -present 8 • Graduate Department, CONHS • Chinese Collaboration liaison, CONHS University • IRB Committee • Research Enhancement Committee • Inclusive Excellence Committee • Academic Integrity Hearing Panel Activities Meng Zhao 09/01/2012 -present 09/01/2012 -present 09/01/2014 -present 09/01/2016 -present 09/01/2013-8/31/2016 09/01/2014-8/31/2016 Service to the Profession Activities Dates of Service • Global Journal of Health Science. (journal reviewer) 09/01/2013 -present • British Journal of Education, Society & Behavioural 07/01/2014 -present Science (journal reviewer) • Journal of Nursing Measurement (journal reviewer) 08/01/2016 -present • Southern Nursing Research Society (abstract reviewer) 9/16/2015 -present • Sigma Theta Tau International Honor Society of Nursing 09/01/2008 -present • American Nurse Association & Texas Nurse Association 09/01/2013 -present • Asian American Pacific Islander Nurses Association (Ad 09/01/2005 -present hoc Communications Committee) • National League of Nursing (Coordinator) Service to the Community 2011-2012 Activities Dates of Service • American Nurse Association & Texas Nurse Association -Serve on Texas Local Chapter. Volunteer for local activities 06/01/2011 -present 9 Meng Zhao OTHER Significant Professional Development Activities • New Faculty Orientation Workshop, 2012-2013: several workshops were presented at TAMUCC to orient new faculty members • Test Writing Workshop, Feb, 2015: workshop at Del Mar College west campus • Research Intensive Workshop: Nuts and Bolts of Designing, conducting, Analyzing and Funding Intervention Studies, 2013: several workshops were presented at the Ohio State University on different research topics and grant writing skills • Faculty Research Development Program at TAMUCC: Starting from Oct 2014 10 City Of Corpus Christi PLANNING COMMISSION BOARD DETAILS OVERVIEW SIZE 9 Seats TERM LENGTH 3 Years TERM LIMIT 6 Years The Planning Commission makes and amends a master plan for the physical development of the City; to recommend to the City Council approval or disapproval of proposed changes in the zoning plan; to exercise control over platting or subdividing land within the corporate limits of the city and within an area extending five miles beyond the City limits; to submit annually to the City Manager not less than 90 days prior to the beginning of the budget year a list of recommended capital improvements which in the opinion of the commission are necessary or desirable during the forthcoming five-year period; to require information from other departments of the City government in relation to its work; to be responsible to and act as an advisory body to the City Council and to perform such additional duties and exercise such additional powers as may be prescribed by ordinance of the City Council. In addition, members appointed to the Planning Commission are concurrently appointed to the concurrent Beach/Dune Committee (§10-17). This committee reviews applications for master planned development ordinances from applicants seeking beachfront construction, and submits their recommendations to City Council. They also review the location of the dune protection line and beachfront construction line at least once every five years or within 90 days after a tropical storm or hurricane affecting the portion of the coast lying within the City's jurisdiction. DETAILS COMPOSITION Nine (9) members which shall consist of nine registered voters of the City appointed by the City Council for three-year staggered terms. Members elect a Chair from among its membership at the first regular meeting in August of each year. CREATION / AUTHORITY City Charter Art. 5, Sec. 1-6. The first Planning Commission ordinance was adopted in 1937 and has been amended several times, the latest amendment being adopted 7-13-68. Sec. 10-17, Code of Ordinances; Ord. 022164, 2-28-95. MEETS Every other Wednesday, City Hall, Council Chambers, 5:30 p.m. TERM DETAILS Three-year staggered terms. DEPARTMENT Development Services COMMITTEE/ SUBCOMMITEE N/A AGENDAS OTHER INFORMATION PLANNING COMMISSION Planning Commission Members March 21, 2017 One (1) vacancy with term to 7-31-18. Name Board Name Status District Term End Date Position Philip Ramirez PLANNING COMMISSION Resigned District 4 2 07/31/18 Chair Daniel M. Dibble PLANNING COMMISSION Active District 5 1 07/31/19 Member Jeremy Baugh PLANNING COMMISSION Active District 1 1 07/31/19 Member Eric Villarreal PLANNING COMMISSION Active District 2 2 07/31/19 Vice -Chair Carl Crull PLANNING COMMISSION Active District 5 1 07/31/17 Member Heidi Hovda PLANNING COMMISSION Active District 2 1 07/31/17 Member Marsha Williams PLANNING COMMISSION Active District 3 1 07/31/17 Member Mike Lippincott PLANNING COMMISSION Active District 4 2 07/31/18 Member Frank Hastings PLANNING COMMISSION Active District 5 Partial 07/31/18 Member -„- NM „ _ .111M11. , ' P Martin L. Evans PLANNING COMMISSION District 5 Freedom Investment Counsel LLC 101 North Shoreline Blvd, Ste. 560 Corpus Christi TX Matthew C. Ezell PLANNING COMMISSION District 2 South Texas Building Partners 3817 5 Alameda, Ste. A Corpus Christi TX 361-299-5462 Mark Flores PLANNING COMMISSION District 1 IBEW 278 2301 Saratoga Corpus Christi TX 361-816-9597 Keith Heavilin PLANNING COMMISSION District 4 Corpus Christi AutoPlex 6422 South Padre Island Dr. Corpus Christi TX 361-334-7400 Jason Page PLANNING COMMISSION District 4 Self -Employed 715 5 Tancahua Corpus Christi TX 361-589-9050 Sheldon Schroeder PLANNING COMMISSION District 4 Freeman Schroeder Architects 418 Peoples Street, Suite 101 Corpus Christi TX 361-960-3771 Planning Commission Applicants March 21, 2017 Morgan Spear PLANNING COMMISSION District 4 Morgan Spear Associates 225 S. Carancahua Corpus Christi TX 361-883-5588 Diana Summers PLANNING COMMISSION District 4 Hogan Homes 400 Mann St. Kamran Zarghouni PLANNING COMMISSION District 5 KM Premier Real Estate 7009 S. Staples, Ste. 102b Corpus Christi 512-994-8786 Corpus christi TX 361-991-5263 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Martin L. Evans Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? AIRPORT BOARD, COMMUNITY YOUTH DEVELOPMENT (78415) PROGRAM STEERING COMMITTEE, CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION / LOAN REVIEW COMMITTEE, CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION, CORPUS CHRISTI REGIONAL TRANSPORTATION AUTHORITY, NUECES COUNTY TAX APPRAISAL DISTRICT, PLANNING COMMISSION, PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX 11111111111.1111 Street Address Suite or Apt 111 City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone Freedom Investment Counsel LLC Owner Employer Job Title 101 North Shoreline Blvd, STE 560 Work Address - Street Address and Suite Number Corpus Christi Work Address - City Martin L. Evans Page 1 of 5 TX Work Address - State 78401 Work Address - Zip Code Work Phone Marty@Freedom-ic.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: no Education, Professional and/or Community Activity (Present) BS Political Science & History Ed, Texas A&I University Registered Voter? Yes No Current resident of the city? Yes No 50 If yes, how many years? City _Board _Resume.doc Upload a Resume Please upload any additional supporting documents Martin L. Evans Page 2 of 5 Demographics Unknown Ethnicity Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. fJ I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. TJ I Agree Martin L. Evans Page 3 of 5 Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Board -specific questions (if applicable) Question applies to CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION / LOAN REVIEW COMMITTEE Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * • Financial Institutions Question applies to CORPUS CHRISTI REGIONAL TRANSPORTATION AUTHORITY. Are you a qualified voter* residing in the Authority? (Note: Authority includes the following services areas: Nueces County and the municipalities, Bishop, Corpus Christi, Driscoll, Gregory, Banquete, Agua Dulce, San Patricio, Port Aransas and Robstown) Yes No Question applies to CORPUS CHRISTI REGIONAL TRANSPORTATION AUTHORITY. Are you transportation disadvantaged? • Yes r No Martin L. Evans Page 4 of 5 Question applies to NUECES COUNTY TAX APPRAISAL DISTRICT. Are you a resident and qualified elector* of the District (Nueces County)? c; Yes r No Question applies to NUECES COUNTY TAX APPRAISAL DISTRICT. Have you resided in the District for at least 2 years? r• Yes r No Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? r Yes C No Question applies to PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX Are you a resident of the Port Authority district and an elector* of Nueces County? r Yes c No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Question applies to PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX Have you been a resident of Nueces County for at least 6 months? Yes r No Martin L. Evans Page 5 of 5 MARTIN L. EVANS BACKGROUND: Following college graduation served as a career commissioned officer in the U. S. Army with leadership and management positions in a wide variety of demanding jobs throughout the United States, Europe, the Caribbean, and Central America. Following that, served as Pilot with a regional Part 135 air freight carrier in South Texas. Following that, served as a Financial Advisor and Investment Management Consultant with a major Wall Street Investment Firm. Small business owner in Corpus Christi for past 6 years. PAST POSITIONS & ACTIVITIES RELEVANT TO POSITION BEING SOUGHT: Service Platoon Leader U.S. Army Tank Battalion, Germany Leadership and supervision of 30+ soldiers; Responsible for a fleet of 30 medium trucks, fuel tankers & all terrain ammunition haulers; Logistical support of rations, fuel, supplies and ammunition to an armored tank battalion with 50 heavy tanks and 500+ personnel. Tank Battalion Inteligence Officer, US Army Germany Senior Staff Officer; Information gathering and analysis; Operational planing; Threat analysis; Force protection and operational security; combat readiness training Operations Officer, US Army Garrison, San Juan, Puerto Rico Command VIP breifing officer; Operational plans and training; Helicopter support to multiple military commands and government agencies in Puerto Rico and the US Virgin Islands; Disastor relief and humanitarian assistance operational support Installation Inspector General, US Army Ft. Sam Houston, Texas Personal advisor to the chief executive officer of a major military installation; Identified, analyzed and developed solutions for systemic problems related to the efficient management of a major military community with an annual operating budget in excess of $20 million. Investigated and reported to the commander on non -criminal complaints and allegations; Provided counseling and assistance on complex personal problems reported by employees and clients; budgeting oversight and internal controls Aviation Operations Staff Officer, US Army South, Panama (Operation Just Cause) Aviation issues briefing officer for Commander US Army South; Aviation operations planning and coordination at senior Army command; planned and participated in nation building operations to remote regions of Panama; Protocol escort officer for Secretary of the Army and U.S. Army Chief of Staff on two separate Command visits Aviation Batalion Executive Officer, US Army Honduras & El Salvador Coordinated downed aircraft and casualty recovery in a combat environment; Provided aviation support for International Election Monitors, El Salvador Nationl Reconciliation Elections 1991; Set up and maintained a remote communications relay network supporting aviation operations in a tropical mountainous region of Central America; Provided helicopter transport for medical teams on medical assistance missions to remote indigenous tribes of Honduras; Provided aviation support to US Embasys El Salvador and Honduras Financial advisor with a global investment firm. SKILLS SUMMARY: Excellent communications, written & verbal Multi level employee supervision experince Strategic planning and policy formulation Preparation and presentation of formal briefings Information analysis and reporting Project development and oversight Budgeting EXPERINCE: May 2009 — Present Financial planning and analysis Training and Teaching Computer and Internet savvy Marketing and sales P & L analysis Registered Principle/Owner — Freedom Investment Counsel LLC Established my own independent financial advisory practice to continue performing duties and responsibilities similar to those performed while employed in the financial services industry described below. Apr 1997- May 2009 Financial Advisor & Investment Management Consultant UBS PaineWebber, Corpus Christi, TX Developed new client relationships. Serviced clients in the areas of personal financial plans, employer sponsored retirement plans, securities and insurance sales. Supervised customer service and support staff. Achieved advanced professional designation as an Investment Management Consultant. Developed and maintained a personal business plan. Managed investment strategies in over 200 client relationships working to educate and assist clients in the investment decision making process. Daily activities include financial planning, investment performance analysis, marketing plan implementation, substantial client contact and frequent coordination with outside vendors or product managers. Assisted with new employee selection and training. Grew capital responsibility and personal production for six consecutive years. Current capital responsibility $30,000,000+. Trailing 12 month production $215,000. Awarded special corporate recognition in 1998 for qualifying in the top 10% of peer group for new accounts and new assets under management. Nov 1995 -Apr 1997 Account Executive, Dean Witter, Corpus Christi, TX New client development, securities sales and marketing. (See above) Jul 1994 -Jan 1997 Air Carrier Pilot, Part 135 Operations, Aero Pak, San Antonio, TX Pilot for an overnight air freight operator. Aug 1991 -Jul 1994 Aviation Division Chief, Fifth U.S. Army, Ft. Sam Houston, TX Supervised a 5 -person management evaluation team validating aviation organization's training, safety, standardization and maintenance programs in an eight -state area. Inspected compliance with established regulations and policies. Insured internal controls and budget expenditure reporting procedures. Participated in formulation of policy and operational plans. Provided oversight and inspection Jan 1991 -Aug 1991 Executive Officer, 4th BN 228th Aviation Regt., Soto Cano AB, Honduras Supervised a management team responsible for aviation operations in 5 Central American countries with 30 helicopters and 300 employees. Developed a goal oriented aviation maintenance management program, improving aircraft availability rates by over 10% allowing increased operating tempo. Developed and implemented organizational structure changes to enhance aviation support in Central America. Jan 1990 -Jan 1991 Aviation Operations Officer, U.S. Army South, Ft. Clayton, Panama Provided staff oversight and support of aviation operations for a major military headquarters during and after Operation Just Cause. Organized and conducted frequent formal decision briefings and informative presentations for senior executive leadership and high level political and government leaders. Selected principal escort officer for Secretary of the Army and U.S. Army Chief of Staff on two separate command visits. Utilized persuasive skills in the corporate decision process. Feb 1986 -Jan 1990 Inspector General, Headquarters USAG, Ft. Sam Houston, TX Personal advisor to the chief executive officer of a major military installation. Responsible for formulation and interpretation of policies and regulations. Established a systematic inspection program to insure compliance with prescribed operating procedures. Received, evaluated and recommended action on special issues raised by employees and customers. Identified, analyzed and developed solutions for systemic problems related to the efficient management of a major military community with an annual budget in excess of $20 million. Supervised 5 staff specialists. Computer skills and other Qualifications: Microsoft Office Suite Windows NT MS Word MS Excel Group one life & annuity insurance license Education: NASD Series 7 Series 63 ACT Contact Management data base MS PowerPoint Series 65 Series 31 Investment Management Consultant Internet savvy Graduated Calallen Highschool 1969, BS in Political Science & History ED, Texas A & I University, Distinguished Military Graduate; Army Command and General Staff College (graduate level). Investment Management Consultant program UBS PaineWebber. BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Matthew C Ezell Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 2 What district do you live in? Primary Phone Alternate Phone South Texas Building Partners President Employer Job Title 3817 S Alameda, Ste A Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78411 Work Address - Zip Code Matthew C Ezell Page 1 of 4 3612995462 Work Phone mce@stbp.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: Yes, I am currently chairman of the Building Standards Board, in the third year of my three year term. Education, Professional and/or Community Activity (Present) I attained my undergraduate degree at Texas A&M University in College Station in 2005 (bachelor of science in economics) and my masters degree at Texas A&M University - Corpus Christi in 2010 (master of business administration). I was employed by a Corpus Christi -based general contractor from 2005 to July 2012, when I left to start my own general contracting firm South Texas Building Partners. Community Activity has been a big part of my life, especially since moving to Corpus Christi. I have enjoyed serving on and chairing the Building Standards Board. I have also served as president of the South Texas Chapter of the AGC, vice president of the Nueces County A&M Club (Aggie alumni group), and co-chairman of Corpus Christi Cattle Baron's Ball. I am a graduate of Leadership Corpus Christi class 39, and have been active in participating and supporting numerous other causes. Registered Voter? Yes No Current resident of the city? Yes No 11 years If yes, how many years? resume 2016-04-05.pdf Upload a Resume Please upload any additional supporting documents Matthew C Ezell Page 2 of 4 Demographics Caucasian/Non-Hispanic Ethnicity Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. 17 I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. TJ I Agree Matthew C Ezell Page 3 of 4 Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Board -specific questions (if applicable) Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? Yes No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Matthew C Ezell Page 4 of 4 SI South Texas sr Building Partners Matthew Christo her Ezell Experience July 2012- STBP, Inc. dba South Texas Building Partners Present President • Build business from concept through business plan, funding, and into operations • Strategic planning • Communication of and direction toward pursuit of mission/vision • Remove obstacles to the success of our partners • Lead all business operations June 2005 - July 2012 Corpus Christi, Texas Ewing Construction Co., Inc. Corpus Christi, Texas Assistant Project Manager, Project Manager, Project Executive, Corporate Secretary/Treasurer • Balance all aspects of over 1,350,000 sq ft of remodel work and over 550,000 sq ft of new construction/renovation in the retail, educational, government, office, and light industrial sectors totaling more than $85 million of work in place Activities/Affiliations • Associated General Contractors - South Texas Chapter, Board Member and 2016 President • City of Corpus Christi Building Standards Board, Member/Chairman • American Institute of Constructors, Member/CPC (Certified Professional Constructor) • US Green Building Council - Texas Gulf Coast Chapter - Coastal Bend Branch, Member/LEED Green Associate • Design -Build Institute of America, Member/Assoc. DBIA • The Episcopal Church of the Good Shepherd, Member • Cattle Baron's Ball Corpus Christi, Committee Member and 2015 Co -Chairman • Cattle Baron's Ball Advisory Committee (comprised of past chairs), Member • Leadership Corpus Christi Alumni Association, Member • Alumni Association of Texas A&M University - Corpus Christi, Member • The Association of Former Students of Texas A&M University, Member • Nueces County A&M Club, Member, Past Vice President of Finance/Fishing Tournament Chair/Trustee • Friends of Corpus Christi Public Libraries, Member • Coastal Conservation Association, Member • Ducks Unlimited, Member Certifications/Accreditations • MBA • Assoc. DBIA • CPC • LEED Green Associate • CPR/AED/First Aid • OSHA 10 Hour • Basic Orientation Plus Education Texas A&M University Bachelor of Science in Economics, Minor in Business Administration, May 2005 Texas A&M University - Corpus Christi Master of Business Administration, August 2010 Training, References, and Project Experience Available upon request College Station, Texas Corpus Christi, Texas SI South Texas sr Building Partners Training Work References USGBC Energy Efficiency for Existing Buildings, April 2016 American Heart Association CPR/AED/First Aid, Corpus Christi TX, April 2016 AGC Competing on Business Analytics, March 2016 AGC Construction Contract Claims: Lessons Learned from the Battlefield, March 2016 AGC Lean Construction for Executives, March 2016 USGBC Principles of LEED (EB: 0+M): Materials and Resources, May 2014 USGBC Principles of LEED (BD+C and ID+C): LEED Implementation, May 2014 USGBC Integrative Process: Closing the Gaps, May 2014 Basic Orientation Plus, Corpus Christi TX, May 2014 American Heart Association CPR/AED/First Aid, Corpus Christi TX, March 2014 LEED 201: LEED Core Concepts & Strategies, May 2012 OSHA 10 Hour Construction Industry Outreach, Corpus Christi TX, March 2012 Leadership Corpus Christi Class 39, Corpus Christi TX, August 2010 through May 2011 FMI Leadership Institute, Florissant CO, May 2011 American Red Cross CPR/AED/First Aid, Corpus Christi TX, February 2011 IMS Advanced Project Management in Primavera P6, Houston TX, October 2010 IMS Project Management in Primavera P6, Houston TX, September 2010 USACE Construction Quality Management for Contractors, Corpus Christi TX, July 2009 DBIA Designated Design -Build Professional Boot Camp, San Luis Obispo CA, September 2008 Dale Carnegie Course, Corpus Christi TX, December 2007 FMI Young Managers Institute, Raleigh NC, November 2007 FMI Project Manager Academy, Raleigh NC, December 2006 Mark Luddeke, Principle, Luddeke Architectural Desi n Group, William McCord, Principle, WKMC Architects Will Klatt, President, Ambrose Construction, Terry Allison, President, Allison Floorin America, Vicki George, CFO, London ISD, Michael Owens, Regional Manager, CCC Group, Inc.,_ Personal References Brett Blanchard, Chet Freeman,l Kathy Killebrew, SI South Texas sr Building Partners Project Experience - Ewing Construction Co., Inc. Firm Role Project Location Contract Value ECCI Asst. Proj. Mgr. Sears Grand Austin TX $ 9,339,720 ECCI Proj. Mgr. Wal-Mart #249 Remodel Cleveland TX $ 698,567 ECCI Proj. Mgr. Wal-Mart #228 Remodel Cleburne TX $ 1,215,067 ECCI Proj. Mgr. Wal-Mart #3224 Remodel Garland TX $ 772,769 ECCI Proj. Mgr. Wal-Mart #3213 Remodel The Woodlands TX $ 920,183 ECCI Proj. Mgr. Wal-Mart #2649 Remodel Irving TX $ 1,172,901 ECCI Proj. Mgr. Randall's #1066 Remodel Houston TX $ 1,472,079 ECCI Proj. Mgr. CVS Pharmacy #7471 Corpus Christi TX $ 2,225,754 ECCI Proj. Mgr. Sam's Club #8248 Special Project Dallas TX $ 102,036 ECCI Proj. Mgr. Wal-Mart #2864 Remodel San Antonio TX $ 1,439,505 ECCI Proj. Mgr. Wal-Mart #5165 Restroom Remodel Alamo TX $ 222,877 ECCI Proj. Mgr. Wal-Mart #1175 Restroom Remodel Flagstaff AZ $ 222,917 ECCI Proj. Mgr. Popeyes Chicken & Biscuits Corpus Christi TX $ 700,362 ECCI Proj. Mgr. Stripes #2101 Corpus Christi TX $ 1,020,584 ECCI Proj. Mgr. Cavender's Boot City Corpus Christi TX $ 427,282 ECCI Proj. Mgr. Cavender's Western Outfitter McAllen TX $ 1,194,796 ECCI Proj. Mgr. Plaza 410 Renovation South Padre Island TX $ 82,748 ECCI Proj. Mgr. Texas Champion Bank Headquarters Corpus Christi TX $ 7,341,930 ECCI Proj. Mgr. London ISD Middle School Addition Corpus Christi TX $ 5,304,410 ECCI Proj. Mgr. Tuloso-Midway ISD Tennis Courts Corpus Christi TX $ 2,361,004 ECCI Proj. Mgr. Tuloso-Midway High School Addition Corpus Christi TX $ 4,693,314 ECCI Proj. Mgr. Tuloso-Midway Middle School Corpus Christi TX $ 6,935,795 ECCI Proj. Mgr. Del Mar College Fine Arts PCS Corpus Christi TX $ 37,500 ECCI Proj. Mgr. CCISD Zavala Elementary School Corpus Christi TX $12,721,947 ECCI Proj. Mgr. SNAP Reichhold Chemie Hausen, Switzerland $ 3,440,200 ECCI Proj. Exec. Texas A&M -CC Tennis Center Corpus Christi TX $ 2,523,761 ECCI Asst. Proj. Mgr. NAVFAC - CCAD Rotor Blade Facility Corpus Christi TX $10,325,000 ECCI Proj. Exec. Coastal Drilling Additions Corpus Christi TX $ 521,933 ECCI Proj. Exec. Texas Workforce Commission Fence Corpus Christi TX $ 67,619 ECCI Proj. Exec. Texas Champion Bank Drive-thru ATM Corpus Christi TX $ 37,226 ECCI Proj. Exec. Wings n' More Corpus Christi TX $ 1,410,331 ECCI Proj. Exec. Jim Hogg County Street Improvements Hebbronville TX $ 259,660 ECCI Proj. Exec. Ashley Furniture Home Store Corpus Christi TX $ 833,476 ECCI Asst. Proj. Mgr. TPCO America - Pipe Finishing Facility Gregory TX $28,000,000 Project Experience - STBP, Inc. dba South Texas Building Partners See attached BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 10, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Mark Flores Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? CORPUS CHRISTI REGIONAL TRANSPORTATION AUTHORITY, ELECTRICAL ADVISORY BOARD, PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 1 What district do you live in? Primary Phone Alternate Phone IBEW 278 ASST. BUSINESS MANAGER Employer Job Title 2301 SARATOGA Work Address - Street Address and Suite Number CORPUS CHRISTI Work Address - City TX Work Address - State 78417 Work Address - Zip Code Mark Flores Page 1 of 4 361-816-9597 Work Phone Work E-mail address Work Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: NO Education, Professional and/or Community Activity (Present) (1980-1984) TEXAS GULF COAST ELECTRICAL JOINT APPRENTSHIP PROGRAM AND TRAINING PROGRAM. 34 YEARS ELECTRICAL EXPERIENCE Registered Voter? r• Yes r No Current resident of the city? t7 Yes ` No 39 If yes, how many years? FLORES.pdf Upload a Resume FLORES.pdf Please upload any additional supporting documents Demographics Hispanic Mark Flores Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. V I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Mark Flores Page 3 of 4 Board -specific questions (if applicable) Question applies to CORPUS CHRISTI REGIONAL TRANSPORTATION AUTHORITY. Are you a qualified voter* residing in the Authority? (Note: Authority includes the following services areas: Nueces County and the municipalities, Bishop, Corpus Christi, Driscoll, Gregory, Banquete, Agua Dulce, San Patricio, Port Aransas and Robstown) Yes No Question applies to ELECTRICAL ADVISORY BOARD. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * i Journeyman Electrician (minimum five years' experience) Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? (;. Yes t'No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Mark Flores Page 4 of 4 STATE OF TEXAS MARK A FLORES JOURNEYMAN ELECTRICIAN LICENSE NUMBER 24503 EXPIRS 05/25/2015 TEXAS DEPARTMENT OF LICENSING AND REGULATION BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Keith Heavilin Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? AIRPORT BOARD, CIVIL SERVICE BOARD, CIVIL SERVICE COMMISSION, MARINA ADVISORY COMMITTEE, PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Corpus Christi AutoPlex General Manager Employer Job Title 6422 SPID Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78418 Work Address - Zip Code Keith Heavilin Page 1 of 5 3613347400 Work Phone keith@ccautoplex.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: Education, Professional and/or Community Activity (Present) Registered Voter? t: Yes No Current resident of the city? c Yes r No 1 If yes, how many years? Keith Heavilin Resume 2016.docx Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Keith Heavilin Page 2 of 5 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Keith Heavilin Page 3 of 5 Board -specific questions (if applicable) Question applies to CIVIL SERVICE COMMISSION,CIVIL SERVICE BOARD. Have you resided in the City for at least 3 years? Yes No Question applies to CIVIL SERVICE COMMISSION,CIVIL SERVICE BOARD. Have you held public office during the past 3 years? cYes 6 -No Question applies to CIVIL SERVICE COMMISSION,CIVIL SERVICE BOARD. Are you over 25 years of age? 6' Yes rNo Question applies to MARINA ADVISORY COMMITTEE. Per city ordinance, the committee must include representatives from certain categories. Do you qualify for any of the following categories? * TJ None of the Above Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? Yes No Keith Heavilin Page 4 of 5 Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Keith Heavilin Page 5 of 5 Keith Heavilin WORK EXPERIENCE General Manager CC AutoPlex, Corpus Christi, TX April 2016 -Present • Oversee all operations of a start-up buy -here -pay -here car dealership, related finance company, and service shop • Responsible for establishing and implementing all processes and procedures to insure a profitable and compliant dealership and finance company. • Responsible for vehicle procurement, sales and collection operations and all accounting and financials. General Manager Smart Auto Inc., Knoxville, TN June 2010- May 2015 • Oversaw all operations of bicoastal, $38 million portfolio buy -here -pay -here car dealership, related finance company, and service shops • Directly managed 15 key managers including Sales, Service, Finance, General Counsel, Business Development, and Dealer Support personnel • Responsible for growing portfolio by 30% in 5 year tenure as General Manager Supported four full-service car dealership locations, hired key managers, developed and executed successful operational policies and procedures in all departments • Continually identified areas of improvement throughout the organization, developed strategic plan for improvement, managed process until goal metrics were reached Service Manager Smart Auto Inc., Knoxville, TN January 2010 • Changed parts ordering process to save $250,000 per year per location • Established Asset Management performance metrics and buying guides for buyers in all locations • Streamlined reconditioning process of assets to reduce cost by $250 per unit • Exceeded all established performance goals while reducing overhead and employee headcount Customer Relationship Manager/Underwriter Smart Auto Inc., Knoxville, TN August 2009 • Responsible for daily, weekly, and monthly collection goals including: cash collected, delinquency, repossessions, and charge offs. • Performed all underwriting of vehicle loans on site to buy from related sales company • Maintained relationships with customers throughout life of auto loan ensuring timely payments to the finance company SKILLS EDUCATION • Proficient manager of teams and individuals • Highly adaptable to new and changing conditions • Expert at finding bad/inefficient processes and procedures and implementing corrections for efficiency and profitability • Expert user of FEXDMS, Dialing Systems, Accurint, GPS Tracking Systems University of Tennessee, Knoxville, Tennessee BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Jason Prefix First Name Email Address Middle Initial Page Last Name Which Boards would you like to apply for? PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Self Employed Owner / Principal Employer Job Title 715 S Tancahua Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78401 Work Address - Zip Code Jason Page Page 1 of 4 3615899050 Work Phone jasondavidpage@gmail.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: I do not currently serve on any other board, commission, or committee Education, Professional and/or Community Activity (Present) Registered Voter? O'Yes r No Current resident of the city? rr Yes r No 32 If yes, how many years? Jason Page Resume.pdf Upload a Resume Please upload any additional supporting documents Demographics Caucasian/Non-Hispanic Jason Page Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Jason Page Page 3 of 4 Board -specific questions (if applicable) Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? e Yes r No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Jason Page Page 4 of 4 JASON PAGE SUMMARY Freelance photographer with experience in digital and film, as well as medium format photography. Available 24 hours a day. Specialty equipment can typically be ordered in overnight for time critical projects. Currently searching for architects, commercial builders, industrial builders and Realtors who are interested in upping their marketing game with quality photography Experienced: Photojournalism, Events, Weddings, Portraiture, Corporate Identity & Headshots, Real Estate, Product & Food, Commercial Promotional EXPERIENCE JASON PAGE FREELANCE PHOTOGRAPHER 03 / 2010 - Present Owner, Principal I am the principal photographer and am responsible for the day-to-day operations as well as marketing and customer satisfaction. I have built up one of the best-known names for wedding photography in the South Texas area, and pride myself on handmade images, limited bookings and one-on-one client contact. I also have become the leader in Real Estate photographer for several local agencies and top agents in the Corpus Christi metro area, and provide these agents with superb images to help market their listings more effectively, while reducing the initial listing workload. HOEGEMEYER'S BARBEQUE BARN 01 / 2013 - Present Business Development Responsible for the ongoing acquisition and cultivation of new customers and ongoing clients. Created long range forecasts based on current and past sales data and targeted marketing efforts to help secure these goals. Used multiple paths of marketing to brand business as a destination for barbeque in the Coastal Bend. SOUTHERN TECHNICAL CONTROL 03 / 2012 - Present Inventory & Production Management Consultant I currently consult with the company management regarding their Inventory and Production. Inventory Management - I have developed a best practices workflow and worked with the employees responsible for purchasing and inventory to better their skills at tracking inventory as it is ordered, entered into their system, and sent out. I have also worked on streamlining their accounting system to remove duplicate inventory items and create items that didn't exist. Production Management - I have worked with the management to implement a series of methods for tracking production, both in the product manufacturing and field service aspects of the business. I have implemented various in-house databases to help the company keep track of their current and past production SOUTHERN TECHNICAL CONTROL 10 / 2008 - 03 / 2010 Purchasing Manager Handled inventory levels, bought and sold obsolete and used parts, part repairs, sourced parts for 20+ field service personnel, billed parts used on various projects as well as estimated parts to be used on projects. NUECES STONE QUARRY 10/ 2006 - 01 / 2008 Manager Managed all aspects of the business including inventory, product sourcing, commercial and residential accounts, employees and bookkeeping. EDUCATION TEXAS A&M UNIVERSITY -CORPUS CHRISTI None , GIS / Geomatics GIS / Geomatics Club Research Assistant on Aerial Imaging System RICHARD KING HIGH SCHOOL High School Diploma German Club Student Council Senior Council Academic Decathlon CISCO / CCNA Training HONORS Eagle Scout Award CERTIFICATIONS OFFSHORE WATER SURVIVAL HUET Falck Safety Services (US) SAFELANDUSA PEC Safety • License: PEC100474939 SAFEGULF PEC Safety • License: PEC100474939 TWIC Transportation Security Administration (TSA) • German • English LANGUAGES PUBLICATIONS 2002 - 2006 1998 - 2002 02 / 2014 02 / 2014 02 / 2014 12 / 2015 - 12 / 2020 THE BEND MAGAZINE Gemstone Media, LLC / Jordan Regas Authors: Jason http://issuu. com/thebendmag/docs/tb_06_ 14_online/5?e =11308897/8089670 This was a very last minute shoot that I couldn't refuse. When else can I invite Roger Creager t 06/ 2014 Page • o visit our famil)s barbeque place AND get to photograph him with his dad? I said yes immediately! We photographed enjoying an ice cold beer and having a good of time. Then we got a few posed and natural / candid them against some 200 year old doors and a 60 year old hut with the Texas flag painted on the side. THE ONE BRIDE GUIDE McCleod Creative Authors: Jason http://www.theonebrideguide.com/magazine/Vol7_Issue2/TheOne_Vol7Issue2 Final_web.pdf Roger and his dad shots of the two of 06/ 2014 Page • I had the pleasure of coming up with a session with one of my brides to help tie in The One's issue theme, "A Pop of Color". I wanted to literally bring that pop to the cover by including brightly colored, 24" balloons. Natural makeup was provided by Kayla Alvarez and hair was done by Shear Illusions. ZOMBSHELLS!!! 2013 ZOMBIE CALENDAR 10/ 2012 Self Published • Authors: Jason Page • http://photosjasondavidpage.com/zombshells This collaborative effort features eleven zombie models and even includes a centerfold. Photography, Design & Layout by Jason Page, Makeup & Hairstyling by Ashle Riff, Lead Model Amanda Ramirez (aka Mandi Mayhem). Each calendar is 9x12 printed on glossy paper and includes a single hang -hole. SOUTH TEXAS WEDDINGS MAGAZINE 07/2011 STWM - July 2011 • Authors: Jason Page, Joanne Klein For this issue of the South Texas Weddings Magazine, I performed the issue's multipage layout and creative design. I also was responsible for the cover photography. BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Sheldon Schroeder Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone Freeman Schroeder Architects Employer 418 Peoples Street; Suite 101 Work Address - Street Address and Suite Number Corpus Christi Work Address - City TX Work Address - State 78401 Work Address - Zip Code Architect / Principal Job Title Sheldon Schroeder Page 1 of 4 (361) 960-3771 Work Phone sheldon@frescharch.com Work E-mail address Work Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: No Education, Professional and/or Community Activity (Present) Bachelor of Architecture, Architect, Have served on and / or participated in various city planning initiatives over the past 15 years - 2014 R/U DAT, participated in Plan 2035 planning sessions, participated in Destination Bayfront public input workshop, etc.. Currently serve on Texas Society of Architects Urban Planning Committee (ending 3 year term) Registered Voter? cYes r'No Current resident of the city? rr Yes r No 19 If yes, how many years? Resume -Sheldon 05-2016.pdf Upload a Resume Please upload any additional supporting documents Demographics Sheldon Schroeder Page 2 of 4 Caucasian/Non-Hispanic Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. ISI I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. :V I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. I Agree Sheldon Schroeder Page 3 of 4 Board -specific questions (if applicable) Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? r` Yes r No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Sheldon Schroeder Page 4 of 4 frocr -h FREEMAN SCHROEDER architects EXPERIENCE Sheldon Schroeder, AIA Resume 2016 Freeman Schroeder Architects, LLC - 1/2015 -Present Corpus Christi, Texas Principal / Architect Schroeder Architect, LLC - 08/2011-12/2014 Corpus Christi, Texas Owner / Architect Richter Architects - 1997-2011 Corpus Christi, Texas Project manager / Project architect Shaughnessy Fickle & Scott Architects — 1996 — 1997 Kansas City, Missouri Intern International Architects Atelier - 1994-1996 Kansas City, Missouri Intern LICENSURE Architect, State of Texas — Registration # 19241 EDUCATION Bachelor of Architecture - 1994 Oklahoma State University — School of Architecture PROFESSIONAL AFFILIATION American Institute of Architects (AIA) Texas Society of Architects, Board of Directors 2013 — 2014 AIA Corpus Christi, Board of Directors 2006 — 2014 SERVICE AFFILIATION Boys and Girls Club Corpus Christi Board of Directors 2009 - 2012 Sheldon Schroeder, AIA PROJECTS Commercial Auto Dealership — Stanley Bryan Buick GMC Robstown, Texas (Schroeder Architect) Facility Renovations - Kleberg Bank Various Locations in Kingsville and Corpus Christi, Texas (fresch architects) Civic / Institution / Education Children's Exhibit - Museum of Science & History Corpus Christi, Texas (fresch architects — architect of record) Ambulance Station - Nueces County Emergency Services District # 6 Driscoll, Texas (fresch architects) Garcia Sciences Greenhouse — Del Mar College Corpus Christi, Texas (Schroeder Architect) Estuarine Research Center — University of Texas at Austin Marine Science Institute - Port Aransas, Texas (Richter Architects — Project manager) National Museum of the Pacific War — Nimitz Foundation Fredericksburg, Texas (Richter Architects — Project manager) Fine Arts Theater Addition — Del Mar College Corpus Christi, Texas (Richter Architects — Project manager thru 50% Construction) Garcia Sciences Building — Del Mar College Corpus Christi, Texas (Richter Architects — Project manager) Health Sciences and Emerging Technology Center — Del Mar College Corpus Christi, Texas (Richter Architects — Project manager) Health Care MRI Replacement - Mission Regional Medical Center Mission, Texas (fresch architects) Religious Campus Master Plan - Grace Presbyterian Church Corpus Christi, Texas (fresch architects) Fellowship Hall master plan — Lake Hills United Methodist Church Lake Hills, Texas — (fresch architects) Sheldon Schroeder, AIA Facility renovations & improvements - Parkway Presbyterian Church Corpus Christi, Texas (fresch architects) Church campus relocation (adaptive reuse) — Community of Faith Church Corpus Christi, Texas (Schroeder Architect) Residential Private Residence — Rancho Santana, Nicaragua (Schroeder Architect — design architect — under construction) Private Residence — Nueces Riverfront Corpus Christi, Texas (Freeman Schroeder Architects) Sheldon Schroeder, AIA BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Dec 08, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Morgan Prefix First Name Email Address Middle Initial Spear Last Name Which Boards would you like to apply for? CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION, PLANNING COMMISSION, PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone MORGAN SPEAR ASSOCIATES PRESIDENT Employer Job Title 225 S. CARANCAHUA Work Address - Street Address and Suite Number CORPUS CHRISTI Work Address - City TX Work Address - State 78401 Work Address - Zip Code Morgan Spear Page 1 of 5 361-883-5588 Work Phone Work E-mail address Work Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: NO Education, Professional and/or Community Activity (Present) FORMERLY SERVED ON THE BOARD OF ADJUSTMENT BACHELOR OF ARCHITECTURE DEGREE FROM UNIVERSITY OF TEXAS IN AUSTIN 1957 LICENSED TO PRACTICE ARCHITECTURE IN THE STATE OF TEXAS JANUARY 1962 MEMBER OF NATIONAL COUNCIL OF ARCHITECTURE REGISTERED BOARDS 1984 MEMBER OF THE AMERICAN INSTITUTE OF ARCHITECTS MEMBER OF TEXAS SOCIETY OF ARCHITECTS BOARD MEMBER OF HOUSE COMMITTEE AT CORPUS CHRISTI COUNTRY CLUB BOARD MEMBER OF CENTENNIAL HERITAGE HOUSE BOARD MEMBER OF HARBOR PLAY HOUSE LITTLE THEATER CHAIRMAN OF THE BOARD OF PALMER DRUG ABUSE PROGRAM (PDAP) Registered Voter? Yes No Current resident of the city? Yes r No 56 If yes, how many years? Upload a Resume Please upload any additional supporting documents Morgan Spear Page 2 of 5 Demographics Caucasian/Non-Hispanic Ethnicity Gender Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. fJ I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. TJ I Agree Morgan Spear Page 3 of 5 Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Board -specific questions (if applicable) Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? Yes No Question applies to PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX Are you a resident of the Port Authority district and an elector* of Nueces County? Yes No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Morgan Spear Page 4 of 5 Question applies to PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX Have you been a resident of Nueces County for at (east 6 months? r1° Yes c No Morgan Spear Page 5 of 5 BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Mar 14, 2017 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Diana Summers Prefix First Name Middle Initial Last Name Email Address Which Boards would you like to apply for? CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION, CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION, PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 4 What district do you live in? Primary Phone Alternate Phone HOGAN HOMES CHIEF FINANCIAL OFFICER Employer Job Title 400 MANN ST. Work Address - Street Address and Suite Number CORPUS CHRISTI Work Address - City Work Address - State 78401 Work Address - Zip Code Diana Summers Page 1 of 4 512-994-8786 Work Phone Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: NO Education, Professional and/or Community Activity (Present) SEE ATTACHED RESUME BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION, DOUBLE MAJORED IN FINANCE AND ACCOUNTING FROM UNIVERSITY OF SOUTH CAROLINA, 2009 MASTERS OF ACCOUNTING FROM COLLEGE OF CHARLESTON, 2010 PROFESSIONAL EXPERIENCE: PRICE WATERHOUSE COOPERS, LLC, DALLAS: AUDIT ASSOCIATE 2010-2011; DELOITTE AND TOUCHE, LLC, AUSTIN: AUDIT SENIOR ASSOCIATE 2011-2013; HOGAN HOMES, ASSISTANT TO THE PRESIDENT 2013 -PRESENT MEMBER OF CORPUS CHRISTI ROTARY CLUB Registered Voter? Yes r No Current resident of the city? Yes r No 4 If yes, how many years? BROWN.pdf Upload a Resume Please upload any additional supporting documents Demographics Diana Summers Page 2 of 4 Caucasian/Non-Hispanic Ethnicity Gender Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. 14 I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. w I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. w I Agree Diana Summers Page 3 of 4 Board -specific questions (if applicable) Question applies to CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION Are you a qualified elector* of the City? e: Yes c' No Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? Yes r No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Diana Summers Page 4 of 4 Diana Brown Permanent Address Acknowledged for strong analytical and problem salving skills, as well as development of team and client relationships. Recognized for achieving an understanding of numerous different business operations and processes, identifying and quickly elevating potential engagement issues, task prioritizing, and multi -tasking abilities. Enjoys challenging engagements and new opportunities to further develop professional skills. Thrives in a team environment yet also works well independently. Committed to exceeding the needs and expectations of the engagement and client. PROFESSIONAL EXPERIENCE Price Waterhouse Coopers, LLC, Dallas Associate, 2010 - 2011 Audited a diverse portfolio of clients including manufacturing, health care, financial, chemical, and holding companies. Part of review team for the issuance of an initial client stock offering Performed 404 SOX Controls testing. Participated on an Advisory and consulting engagement for major financial institution Deloitte and Touche, LLC, Austin Senior Associate, 2011— 2013 Managed and executed the audits of two companies in the manufacturing and construction fields. Participated on two company segment carve out audits. Performed 404 SOX controls design and operating effectiveness testing. Member of new client acquisition team EDUCATION University of South Carolina Bachelor of Science in Business Administration, 2009 Double Majored: Finance and Accounting Directed Studies: French College of Charleston Masters of $ccounting 2010 Study Abroad: University of South Carolina, Maymester Session, Kenya, Africa Studied business tactics and problem solving techniques within the economic and political structure of Kenya. Examined the local operations of The Coca Cola Company, Dockers, a subsidiary of Levi Strauss and Co., Kazuri Beads, Ltd. and KickStart, a non-profit dedicated to developing technologies for small-scale enterprises. Studied the importance of eco -tourism to the national economy. National Outdoor Leadership School, Broome, Australia Studied leadership skills and development, while facing extreme conditions of the Australian Outback. Also focused on technical outdoor skills and environmental ethics. OTHER/LEADERSHIP ACTIVITIES Recipient of the USC Thomas Moore Craig Leadership Award (2008) Recipient of the Student Government Executive Officer Meritorious Award (2009) Student Senator representing Darla Moore School of Business (2007 - 2009) Chairman for Senate Finance committee (2009) Sorority Coo i n c i l President (2008 - 2009) Omicron 1 '1.1 Kappa Honors Society President (2009) Mortar Board Honors Society Treasurer (2008) BIOGRAPHICAL INFORMATION FORM FOR A CITY BOARD, Submit Date: Sep 18, 2016 COMMISSION OR COMMITTEE FOR THE Status: submitted Profile Kamran Prefix First Name Email Address Zarghouni Middle Initial Last Name Which Boards would you like to apply for? PLANNING COMMISSION Street Address Suite or Apt City State Postal Code District 5 What district do you live in? Primary Phone Alternate Phone KM PREMIER REAL ESTATE Employer 7009 s.staples ste102b Work Address - Street Address and Suite Number Corpus christi Work Address - City Tx Work Address - State 78413 Work Address - Zip Code Broker / Owner Job Title Kamran Zarghouni Page 1 of 4 3619915263 Work Phone Kamranzarghouni@gmail.com Work E-mail address Home/Primary Address Preferred Mailing Address Interests & Experiences Do you currently serve on any other City board, commission or committee at this time? If so, please list: Education, Professional and/or Community Activity (Present) Real Estate Broker Master in business administration Registered Voter? O'Yes r No Current resident of the city? 6. Yes r No 14 If yes, how many years? Upload a Resume Please upload any additional supporting documents Demographics Other Kamran Zarghouni Page 2 of 4 Male Verification City Code Requirement - As a board, commission, or committee member, you will be asked to adhere to: City Code of Ordinances, Section 2-65, which states that all members of City boards and commissions, including ad hoc committees, appointed by the City, must be residents of the city. A move outside the city limits of the city by any member shall constitute automatic resignation from the particular board or commission on which such member served. Also, City Code of Ordinances, Section 2-61, which provides that absences from more than 25% of regularly scheduled meetings during a term year on the part of any board, commission, or committee member shall result in an automatic termination. An absence shall be deemed unexcused unless excused by the board, commission or committee for good cause no later than its next meeting after the absence. w I Agree Consent for Release of Information - I understand that if any member of the public makes a request for information included in this application for appointment it must be disclosed under the Public Information Act. I also understand that it may not be legally possible to maintain the confidentiality of such information, and I hereby release the City of Corpus Christi, and its agents, employees and officers, from any and all liability whatsoever if the information must be released pursuant to the Public Information Act. l�J I Agree Oath - I swear that all of the statements included in my application and attached documents, if any, are true and correct. fiJ I Agree Kamran Zarghouni Page 3 of 4 Board -specific questions (if applicable) Question applies to PLANNING COMMISSION. Are you a registered voter of the City of Corpus Christi? e Yes r No Question applies to multiple boards. *Qualified elector/voter means a person who is 18 years of age or older; a United States Citizen; has not been determined by a final judgement of a court to be mentally incapacitated; has not been finally convicted of a felony or, if so convicted has fully discharged the person's sentence including incarceration, parole or supervision, or completed a period of probation ordered by an court; and a resident of this State. Kamran Zarghouni Page 4 of 4 AGENDA MEMORANDUM Future item for the City Council meeting of February 28, 2017 Action Item for the City Council meeting of March 21, 2017 DATE: TO: Margie C. Rose, City Manager February 14, 2017 FROM: Mike Markle, Chief of Police mikema@cctexas.com 886-2604 Resolution submitting a grant application to the State for the Justice Assistance Grant (JAG) Program CAPTION: Resolution authorizing the submission of a grant application in the amount of $288,116 to the State of Texas, Criminal Justice Division, for funding eligible under the FY2016 Justice Assistance Grant (JAG) program for law enforcement equipment; and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant. PURPOSE: The City is requesting funds for law enforcement equipment. BACKGROUND AND FINDINGS: JAG funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice for any one or more of the following purpose areas: • Law enforcement programs • Prosecution and court programs • Prevention and education programs • Drug enforcement programs • Corrections, community corrections and reentry programs • Technology improvement programs • System assessment and program evaluation The funds will be used to enhance law enforcement efforts. 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: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 0 $288,116 $288,116 BALANCE Fund(s): Police Grants Fund Comments: RECOMMENDATION: Staff recommends submitting the application. LIST OF SUPPORTING DOCUMENTS: Resolution Resolution authorizing the submission of a grant application in the amount of $288,116 to the State of Texas, Criminal Justice Division, for funding eligible under the FY2016 Justice Assistance Grant (JAG) program for law enforcement equipment; and authorizing the City Manager or the City Manager's designee to apply for, accept, reject, alter or terminate the grant. Therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Manager, or the City Manager's designee, is authorized to submit a grant application in the amount of $288,116 to the State of Texas, Criminal Justice Division, for funding eligible under the FY2016 Justice Assistance Grant (JAG) program for law enforcement equipment. SECTION 2. The City Manager, or the City Manager's designee, may apply for, accept, reject, agree to alter the terms and conditions, or terminate the grant, if the grant is awarded to the City. SECTION 3. In the event of the loss or misuse of these State of Texas, Criminal Justice Division funds, the City of Corpus Christi assures that the funds will be returned to the State of Texas, Criminal Justice Division in full. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta Mayor City Secretary 2 Corpus Christi, Texas of The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn AGENDA MEMORANDUM Future Agenda for the City Council Meeting of February 28, 2017 Action Item for the City Council Meeting of March 21, 2017 DATE: February 16, 2017 TO: Margie C. Rose, City Manager THRU: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3082 Valerie H. Gray, P. E., Executive Director of Public Works valerieg@cctexas.com (361) 826-3729 FROM: J. H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Andres Leal, Jr., P. E., Interim Director of Street Operations andyL@cctexas.com (361) 826-1957 Resolution approving street selection process for Residential Street Rebuild Program (RSRP) CAPTION: Resolution approving the concepts, direction and selection criteria for the Residential Street Rebuild Program (RSRP) PURPOSE: The purpose of this Agenda Item is to obtain approval of the candidate street selection process for the Residential Street Rebuild Program ("RSRP Guiding Principles"). 1 BACKGROUND AND FINDINGS: In 2012, the City began implementation of the Street Improvement Plan (SIP). The SIP is a strategy which addresses maintenance and repair of the entire street system. Residential/Local Street Reconstruction is the final element of the SIP for which program development, funding, and execution methodology is pending finalization. Staff has been working to develop a citywide Residential Street Rebuild Program (RSRP). On August 30, 2016 the Council passed a Resolution (No. 030938) approving Test Projects which would provide up-to-date costing information for residential street reconstruction/rehabilitation as well as experience in the proposed execution processes for the RSRP. With approval on November 8, 2016 of the Bond 2016 Residential Rebuild Project (Project) in the amount of $ 11,000,000, finalization of the proposed RSRP street selection criteria, evaluation matrix and process steps ("RSRP Guiding Principles") is necessary. Approval of this Resolution allows candidate street selection and evaluation for the Project to move forward. ALTERNATIVES: Council could not approve the Resolution. OTHER CONSIDERATIONS: None. CONFORMITY TO CITY POLICY: This item adheres to all City policies. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Street Operations Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year 2015-2016 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Budget (This element of work only) $0.00 $0.00 Encumbered / Expended Amount $0.00 $0.00 2 Fiscal Year 2015-2016 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS This item $0.00 $0.00 Future Anticipated Expenditures This Project $0.00 $0.00 BALANCE $0.00 $0.00 Fund(s): RECOMMENDATION: City staff recommends approval of the Resolution. LIST OF SUPPORTING DOCUMENTS: Resolution Presentation 3 Resolution approving the concepts, direction and selection criteria for the Residential Street Rebuild Program (RSRP) WHEREAS, in 2012, the City began implementation of the Street Improvement Plan (SIP) to address maintenance and repair of the entire street system with residential/local street reconstruction being the final element of the SIP to be implemented; WHEREAS, in 2015, Residential and Local Reconstruction Fund 1042 was created in order that funds might be deposited specific to this element of the SIP in accordance with financial budgetary policies; WHEREAS, in June 2016, the Ad Hoc Residential Street Infrastructure Advisory Committee presented its final report to City Council with recommendations for the Residential Street Rebuild Program (RSRP). WHEREAS, on August 30, 2016, by Resolution No. 030938, the City Council approved the Residential Street Reconstruction Test Project to define the scope and costs of the RSRP; WHEREAS, staff has proceeded to finalize the RSRP street selection criteria, evaluation matrix and process steps ("RSRP Guiding Principles"); NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council approves of, supports and directs staff to proceed with implementing the concepts, direction and selection criteria for the Residential Street Rebuild Program (RSRP). ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Mayor Corpus Christi, Texas of , 2017 The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn Residential Street Rebuild Program (RSRP) Bond 2016 Rebuild Project Council Presentation February 28, 2017 Corpus Christi's Street Network (March 31, 2015) ➢ Total Street System -1,234 Miles o 172 Miles Arterial Streets (14%) o 210 Miles Collector Streets (17%) o 852 Miles Residential/Local Streets & Alleys (69%) ➢ 2010 - Overall Condition of Street System o 20.3M Square Yards (SY) Total System o Approximately 50% of System in "Poor" Condition o Estimated Cost to Repair All Streets to "Good"- $ 967M ✓ $469M for Residential /Local in "Poor" Condition (5.7M SY) ✓ $368M for Arterial / Collector in "Poor" Condition (3.8M SY) ✓ $ 23M for Alleys in "Poor" Condition (0.3M SY) o Condition Result of 30 Years of Neglect ➢ 2014 - Current Estimate for Residential/Local Reconstruction o Estimated Cost to Repair to "Good" Condition - $881M (7.8M SY) (June 17, 2014) o $125/SY (Reconstruction); $80/SY (Rehabilitation) 2 City Street Network Condition (Total 20M Square Yards) ©PC13T 9 Local Street Improvement Plan (Originated 2012) f GORPus O G STREET PREVENTATIVE MAINTENANCE PROGRAM 4tt9,, I% RECONSTRUCTION ARTERIALS / COLLECTORS RECONSTRUCTION LOCAL / RESIDENTIAL 'MPROV ➢ Street Preventative Maintenance Program (SPMP) • All (Residential, Collector & Arterial) streets maintained • Preventative maintenance on all streets in GOOD condition • Primarily funded through SMF ➢ Arterial & Collector Reconstruction • Rebuild non-residential streets in POOR condition • Funded through Bonds ➢ Local/Residential Reconstruction • Test Projects for current costing • Bond 2016 Project ($11M) • No dedicated funding source identified ➢ Policy Considerations • Street design standards (from 20 to 30 year lifecycle) • Street cut policies 4 Street Improvement Plan (SIP) Current Funding ➢ FY17 STREET FUND (No. 1041) - $29.2M TOTAL $13.5M - Operations ✓ General Fund $15.7M- SPMP ✓ Street Fee ✓ RTA ✓ General Fund ➢ FY16 - STREET FUND Began adding $450K in Industrial District Revenue to Street Fund ➢ POLICY CONSIDERATIONS A OF CORPUS CAI, Cr -ty P REVENTATII MAINTENANCE PROGRAM POLICY CONSIDERATIONS RECONSTRUCTION LOCAL / RESIDENTIAL cP�� QNY' "MPROVE0 ➢ EVERY 2-4 YEARS BOND PROGRAM 2012 Prop 1 $55M Prop 8 $ 8.4M 2014 Prop 1 $55M Prop 2 $45M ➢ FY15 - FY17 STREET CAPITAL FUND (No. 1042) ✓ $1M/YR from GF ➢ FY16 STREET CAPITAL FUND ✓ Begin $440K/YR from Industrial District S. FY21 - FY22 STREET CAPITAL FUND ✓ Begin incremental r/s from GF S. FY23 Forward - STREET CAPITAL FUND ✓ Begin 1% from GF ➢ $13.5M Accumulated Over 10 Years ➢ BOND 2016 ADD 1 -TIME $11 PROGRAM 5 Street Improvement Plan 4 CHMS �QVgri GO 044 • 1111) W O POLICY L1 CONSIDERATIONS -�`` Policy Changes ➢ Design standards for street construction set to a 30 year lifecycle. Vertical . Curb & Gutter o Design Addresses the Following: r,E>d,a t a (current) ✓ Soil Conditions (Subgrade) ✓ Traffic Counts and T e / Compacted ed yl' Stabilized Suhgracie \ mestune Bae backfill ✓ Utility Depths and Locations (new) (new) ✓ Drainage (Surface Flow, Ditches, Underground Conveyance, etc.) ✓ Lifecycle Cost Analysis ✓ Market Conditions (Material Availability) ➢ Street Cut Policy o To reduce the number of street cuts o Requires larger patch/repair areas on cuts Residential Street Rebuild Program (RSRP) Program Development Discussion Residential Street Rebuild Program (RSRP) Bond 2016 - $11.0M Residential Street Rebuild Project Bond Ordinance language: "...for the purpose of making permanent public improvements or for other public purposes, to wit: designing, constructing, renovating, improving, constructing (sic), reconstructing, restructuring and extending streets and thoroughfares and related land and right-of-way (including pedestrian and bike traffic lanes), sidewalks, streetscapes, collectors, drainage, landscape, signage, lighting, traffic signals (including networking hardware and software), acquiring lands and rights-of-way necessary thereto or incidental therewith (but specifically excluding related City utility costs, which are the responsibility of the City's utility system),..." Bond 2016 Project $ 11,000,000 Design, Mgmnt, Inspection, Administration, etc. (20%) ($ 2,200,000) Construction $ 8,800,000 Residential Street Rebuild Program (RSRP) Rebuild Options > RECONSTRUCTION - ✓ Full depth treatment ✓ Construction of new pavement structure ✓ Complete removal & replacement of pavement surface and base w/subgrade stabilization ✓ Required when pavement structurally fails ✓ Limited replacement of curb & gutter, sidewalks, etc ✓ Limited utility work > REHABILITATION - N/ Limited treatment ✓ Resurface & rehabilitate existing roadway ✓ Partial recycling of existing pavement and/or base ✓ Restores structural serviceability & extends service life ✓ Minimal replacement of curb/gutter, sidewalks, etc ✓ Minimal utility work Residential Street Rebuild Program (RSRP) Pavement Condition Index (PCI) Distress Quantity Distress IYPe PCI A Di t ess Seve ity Standard PCI 100 Rating Scale 85 70 -\ 55 �/ 40 25 10 0 Dark Green Bright Green Yellow Rose Light Red Dark Red Gray 100 70 55 0 Custom PCI Rating Scale Figure 1: Pavement Condition Index (PCI) ranges may be customized and used for reporting analysis results. 11 PCI Degradation Curve Custom PCI 100 Rating Scale 70 55 Pavements should be managed, not simply maintained. Fair Standard PCI* Rating Scale Cost Escalation Curve 100 Good over time 85 $1 for 70 Rehabilitation Hire 55 Fair Poor 40 25 Serious Failed Significant Drop in Condition 10 0 i Small % of Pavement Life Will Cost $4 to $5 More *PCI = Pavement Condition Index Time Chart from NAPA report: A New Transportation Commitment for America (2007) 12 Residential Street Rebuild Program (RSRP) Reconstruction / Rehabilitation Ralston — Reconstruction Test Site Indian Wells Court— Rehabilitation Candidate Residential Street Rebuild Program (RSRP) TransMap Data • ase r.o� nay P -E • —Very roorva-lo) - sriaus(11 251 — Feisd(.10) w lmlkml Panoramic Image Residential Street Rebuild Program (RSRP) Bond 2016 Program Execution RESIDENTIAL / LOCAL STREETS Bond 2016 Condition PCI RTotal SY % of Total Avg. PCI I Option 1 (SYs) Option 2 (SYs) RECONSTRUCTION Failed 0 — 20 1,572,883 13% 12 I 35,2001 Very Poor 21-35 1,634,446 13% 28 REHABILITATE Poor 36 — 55 3,053,278 25% 46 I 55,00011 110,000tt Fair 56 — 70 2,003,030 16% 63 I Good >70 3,899,711 32% 84 Total 12,163,348 54 90,200 110,00o* tBased on $125/SY and tt$80/SY *Approximately 7.82 linear miles. Residential Street Rebuild Program (RSRP) Representation of Work Quantity 7 TYPICAL RESIDENTIAL STREET BLOCK SECTION I I I I I lilll I I ( PAVEMENT QUANTITY (800 X 24) + 9 = SQUARE YARDS (SYS) 2,133 = SYS 2,133 = D.15 MILES sco� r TYPICAL RESIDENTIAL BLOCK N 0.15 MILES 7.82 MILES r. 52 TYPICAL RESIDENTIAL BLOCKS 5 DISTRICTS = 10 RESIDENTIAL BLOCKS Residential Street Rebuild Program (RSRP) Apportion Funds By District District Total Network Residential/ Local Res./Local PCI <= 55 "Current Need" Square Yards "Need" in % of Total Linear Miles Need SYs Workedt Funding 1 2 3 4 5 5,191, 722 3,675,618 3,262,808 4,528,093 3,696,021 2,803,734 1,471,697 2,279,918 2,009,174 2,761,683 2,308,838 1,481,895 1,099,588 1,273,109 934,318 105 105 78 90 66 24% 24% 18% 20% 15% 25,858 26,037 19,320 22,369 16,416 $2,068,639 $2,082,973 $1,545,596 $1,789,500 $1,313,291 Total 20,354,262 12,163,348 6,260,607 445 100% 110,000* $8,800,000 tBased on $80 / SY. *Approximately 7.82 linear miles. Residential Street Rebuild Program (RSRP) Street Selection Steps Staff A/E ➢ Select First on PCI score ➢ Identify Streets Removed From SPMP ➢ Distribute Based on District Need ➢ Perform Extensive Field Work ➢ Apply Prioritization Criteria ➢ Coordinate with Utilities ➢ Score Candidate Streets against Matrix ➢ Produce Final List for 2018 Work Plan Residential Street Rebuild Program (RSRP) Evaluate & Prioritize Candidate Streets 4, 0., RESIDENTIAL STREET REBUILD PRIORITIZATION MATRIX Criterion High Rank Characteristic Ridability* Level of International Roughness Index (IRI) Safety (Road Hazards) Conditions causing vehicular damage Proximity to Schools* Closeness to a school Developed Frontage* Population count or number of improved lots (proxy) Utility Conflicts* Utility Department rank based on known conditions & costs Street Functionality Volume of traffic Concrete Work Extent to which concrete work is required *Ad Hoc Residential Street Infrastructure Advisory Committee recommended criteria Residential Street Rebuild Program (RSRP) Street Selection Matrix CRITERIA PRIORITIZATION ELEMENTS Description Weight Low Medium High 1 2 3 Rideability 10 % International Roughness Index (IRI): < 3.47 (m/km) IRI 3.47-6 IRI > 6 Safety (Road Hazards) 10 % No conditions that cause vehicular damage One or two conditions that cause vehicular damage Multiple conditions causing vehicular damage Proximity to Schools 10 % More than % mile 1/10th to % mile <= 1/10th mile Developed Frontage 10 % Less than 20% developed 20% to 60% developed More than 60% developed Utility Conflicts 25 % Significant utility work Minor utility work No utility work Street Functionality 10 % Low volume traffic (ie, deadend streets) Moderate traffic volume High volume traffic Concrete Work (Sidewalks, curb & gutter, driveways) 25 % Significant concrete work Moderate concrete work Minor concrete work 100% 20 Residential Street Rebuild Program (RSRP) Key Dates BOND 2016 RESIDENTIAL REBUILD TIMELINE 2016 2017 2018 2019 OCT NOV DEC IAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR RFQ- Design Firms Planning Presentation to Council Approval - Selection Process Award AE Contract 2018 Work Plan Development Approval - Work Plan Design Bid Construction 21 Residential Street Rebuild Program (RSRP) Discussion 22 AGENDA MEMORANDUM Future Item for the City Council Meeting of February 28, 2017 Action Item for the City Council Meeting of March 21, 2017 DATE: February 17, 2017 TO: Margie C. Rose, City Manager THRU: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3897 Valerie H. Gray, P. E., Executive Director of Public Works valerieg©cctexas.com (361) 826-3729 FROM: Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 CAPTION: Construction Contract Ennis Joslin Road Extension (Holly to Williams) Bond 2014 Proposition 2 Motion authorizing the City Manager, or designee, to execute a construction contract with Haas - Anderson Construction, Ltd. of Corpus Christi, Texas in the amount of $4,683,389.20 for Ennis Joslin Road Extension (Holly to Williams) for the total base bid. (BOND 2014 Proposition 2) PURPOSE: The purpose of this Agenda Item is to obtain authority to execute a construction contract for the Ennis Joslin Road Extension Project (Holly to Williams). BACKGROUND AND FINDINGS: Bond 2014 Brochure Description: "Ennis Joslin Road Extension (Holly to Williams) — This project will construct the missing gap in Ennis Joslin from Holly to Williams." Project Scope: This project extends Ennis Joslin Road from Holly to Williams with a 5 -lane Hot -Mix Asphalt Concrete (HMAC) roadway with four travel lanes and a continuous center turn lane. Improvements include new concrete bus stops, curb & gutter, sidewalks, ADA ramps, cycle tracks and pavement markings. Utility improvements include new storm water, wastewater, water and gas. Storm water improvements include construction of new curb inlets with underground conveyance to an open channel from Ennis Joslin east to Paul Jones and then south to an outfall into Oso Creek watershed. City crews will install the new gas pipeline. This project was designed and bid with a HMAC pavement section. The sections of pavement being connected, north of Williams and south of Holly, are both HMAC. Design contracts for the Bond 2014 Proposition 1 & 2 projects required the designers to provide a lifecycle cost analysis and pavement recommendation with their preliminary design reports. The design engineer (Urban Engineering) for Ennis Joslin Road Extension (Holly to Williams) project determined that HMAC was the most cost effective pavement material. All the land was dedicated except for one small parcel which had to be acquired. On January 25, 2017, the City received proposals from five (5) bidders and the bids are as follows: Contractor Base Bid Haas -Anderson Construction, Ltd. Corpus Christi, Texas $4,683,389.20 Bay, Ltd. Corpus Christi, Texas $4,997,168.80 J E Construction Services Corpus Christi, Texas $5,059,463.36 Clark Pipeline Services Corpus Christi, Texas $5,337,901.49 Reytec Construction Services, LLC Corpus Christi, Texas $6,262,547.60 Engineer's Opinion of Probable Cost $5,900,000.00 ALTERNATIVES: 1. Authorize execution of a construction contract. (Recommended) 2. Do not authorize execution of a construction contract. (Not Recommended) OTHER CONSIDERATIONS: Urban Engineering is the design engineer that was selected for this project under RFQ 2014-08. CONFORMITY TO CITY POLICY: Complies with statutory requirements for construction contracts. Conforms to FY 2016-2017 Street Capital Improvement Planning (CIP) Budget. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Street Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year 2016-2017 Project to Date Budget and Expenditures Current Year Future Years TOTALS Budget $419,180 $5,606,655.00 $0 $6,025,835.00 Encumbered / Expended Amount 419,180 0.00 0 419,180.00 This item 0 4,683,389.20 0 $4,683,389.20 Future Anticipated Expenditures This Project 0 880,737.80 0 880,737.80 BALANCE $0 $42,528.00 $0 $42,528.00 Fund(s): Comments: N/A RECOMMENDATION: City staff and Urban Engineering recommend the construction contract be awarded to the lowest responsive and responsible bidder, Haas -Anderson Construction, Ltd., in the amount of $4,683,389.20 for the Ennis Joslin Road Extension (Holly to Williams) project for the total base bid. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Form 1295 Letter of Recommendation Engineering Letter Report (ELR) City Council Action Requests (CCARS) PROJECT BUDGET ESTIMATE Ennis Joslin Extensioin Holly Road to Williams Drive BOND 2014 Proposition 2 PROJECT FUNDS AVAILABLE: Street BOND 2014 Proposition 2 $ 3,400,000 Storm Water CIP 1,885,500 Wastewater CIP 417,200 Water CIP 265,000 Gas CIP 58,135 TOTAL FUNDS AVAILABLE $ 6,025,835 FUNDS REQUIRED: Construction Fees: Construction (Haas -Anderson) THIS ITEM $ 4,683,389 Streets 2,387,277 Utilities 2,296,112 Storm Water 1,505,296 Water 166,878 Wastewater 571,088 Gas 52,850 Contingency (10%) 468,339 Construction Inspection and Testing Fees Construction Inspection 165,710 Construction Phase - Materials Testing Services (Rock) 46,059 211,769 Design Fees and Land Acqusition• 438,036 *Engineering Design (Urban) Original and Amendment No. 1 408,980 Geo Technical Testing (Rock) 10,200 Land Acquistion 18,856 Reimbursement Fees 181,774 Contract Administration (Eng. Svcs Admin/Finance/Capital Budget) 60,258 Engineering Services (Project Mgt/Constr Mgt) 120,516 Misc. (Printing, Advertising, etc.) 1,000 TOTAL $ 5,983,307 ESTIMATED PROJECT BUDGET BALANCE $ 42,528 401, ea krilo ,.... ‹,- 0 ce ..L., = o/2 " '.Jr LP 17, kr.k? et -67e ict ,i -k 't Itk4 go, 4e,,, si e ..i 7riT4 -% a:. C4/ Lr* Or 4 r coa 057] PROJECT LOCATION L. .•zt M LOCATION MAP NOT TO SCALE TO C.r.11/40A G40,,15 Q1,0 Op.ritit FLOUR Project Number: E1510 Ennis Joslin Road Extension (Holly to Williams) Bond 2014 Prop 2 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Ennis Joslin Road Extension Holly Road to Williams Drive BOND 2014 Proposition 2 Corpus Chr sti Engineering Council Presentation February 28, 2017 Project Location �hrsti Engineering Project Vicinity �hrsti Engineering Offsite Drainage Improvements Ennis Joslin Road Cross Sections 0 �hrsti Engineering HOT MIX ASPHALT CONCRETE (HMAC) 6" HMAC 14" LIMESTONE BASE 12" COMPACTED SUBGRADE PRIME COAT GEOGRID CYCLE TRACK inn RCMP CENTER TURN — LANE SIDEWALK BUFFER TRAVEL LANES CYCLE TRACK TRAVEL LANES BUFFER SIDEWALK 4 Project Scope �hrsti Engineering The extension of Ennis Joslin Road from Holly to Williams includes: • New Hot -Mix Asphalt Concrete (HMAC) 5 -lane roadway (4 travel lanes and a continuous center turn lane) with concrete bus stops • New curb & gutter, sidewalks and ADA ramps with adjacent cycle tracks • Underground utility improvements include wastewater, water and gas (Gas improvements will be by City crews) • Storm Water improvements include both underground and 1,585 LF open channel • This project will allow immediate development of adjacent properties and improve access to existing neighborhoods and Veteran High School. Project Schedule �hrsti Engineering 2017 2018 J FMAMJJ ASONDJF Bid/Award MR Construction Construction Estimate: 330 days CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017462229 Date Filed: 02/04/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Haas -Anderson Construction, Ltd. Corpus Christi, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. E15109 Ennis Joslin Road Extension - Holly Road to Williams Drive - Bond 2014 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary Haas, Darryl Corpus Christi, TX United States X Anderson, Jim Corpus Christi, TX United States X Parish, Jim Corpus Christi, TX United States X Lamon, Tim Corpus Christi, TX United States X Cullen, Drew Corpus Christi, TX United States X Moore, Randall Corpus Christi, TX United States X 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT AFFIX Sworn 20 I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. 44:3 ` ,...., NI CAVE NOTARY PUBLIC0:21----, ds Signature of authorized agent of contracting business entity / said Mei/ ;6,,lie.)-1 this the 6 day of e NOTARY STAMP / SEAL ABOVE to and subscribed before me, by the 1 , to certify which, witness my hand and seal of office. / ,f' P A n rv- s , 1 -)'' 1-N AN AL (:‘,..„ _s__--, Signature of officer administering oath Printed name of officer administering oath Title of officer adminis ing oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 February 2, 2017 Jerry Shoemaker, P. E. City of Corpus Christi P 0 Box 9277 Corpus Christi, Texas 78469 Job No. 08896.135.04 TRANSMITTED VIA EMAIL AND ORIGINAL MAILED Subject: ENNIS JOSLIN ROAD EXTENSION HOLLY ROAD TO WILLIAMS DRIVE (BOND 2014) City Project No.: E15109 Dear Jerry: Urban Engineering has received a copy of, and reviewed all of the bids submitted for the subject project. We have also received and reviewed the information required in the Statement of Experience submitted by two of three low bidders (Haas -Anderson and JE Construction Services, LLC). We have investigated and found the bid package and experience record of Haas -Anderson Construction, Ltd., the apparent low bidder, to be satisfactory. Attached please find a Bid Tabulation and a copy of the Statement of Experience. It is the recommendation of Urban Engineering that the subject project be awarded to Haas - Anderson Construction, Ltd., if the funds are available, for the Total Base Bid not including alternative of $4,683,389.20. MFH/ek Enclosure xc: Haas -Anderson Construction, Ltd. (361)854-3101 Sincerely, URBAN ENGINEERING Murray F. Hudson, P. E. 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 www.urbaneng.com TBPE Firm #145 TBPLS Firm #10032400 FAX (361)854-6001 • PAVING OUR FUTURE Ennis Joslin Road Extension (Holly to Williams) (Bond 2014) Engineering Letter Report (FINAL) Prepared For: City of Corpus Christi Capital Programs P.O. Box 9277 Corpus Christi, TX 78401 City Project No. E15109 Submitted By: ILEURBAN ENGNEERING 2725 Swantner • Corpus Christi, TX 78404 T 361.854.3101 F 361.854.6001 TBPE Firm #145 UE Job No. 08896.B5.04 Engineering Letter Report section), then taper to the standard section. The standard section is necessary to facilitate traffic flow to the existing Ennis Joslin Road south of Holly Road. Two distinct structural pavement section designs will be presented by RETL in the geotechnical engineering report. Flexible pavements are typically comprised of sub -base, base and asphaltic concrete material layers. This type of section is relatively inexpensive and can be used in a variety of applications. Due to its flexible properties, it has traditionally been used in areas where existing soil conditions can be variable and have potential for movement. The application of a flexible pavement section to the conditions encountered for Ennis Joslin Road is appropriate. However, flexible pavements do require regular maintenance to achieve their full service life. Rigid pavement sections consist of a sub -base and concrete paving. This type of section is very durable and requires less long term maintenance than do similar flexible pavements. However, its initial costs are generally higher. We recommend contract documents be based on a flexible pavement section. The existing Ennis Joslin Roads, at the north and south ends of the project are flexible pavement sections. Therefore, pavement section types will be consistent and demonstrate continuity throughout the various projects within this area of town. Cycling routes were analyzed with the intention of providing a cycling path at a reasonable cost. Several types of paths were analyzed; including: bike lanes, cycle tracks, multi -use sidepaths, and relying on future projects to provide an off-site path for cyclists in the area. A multi -use sidepath provides significant cost savings (+1- $100,000) over bike lanes, and seperates cyclists from the vehicular street traffic. The Multi -use sidepath was coordinated with the MPO and Capital Programs. LEURBAN ENGINEERING Ennis Joslin Road Extension — Holly Road to Williams Drive (Bond 2014) City Project No.: E15109 Page 12 of 26 AMENDMENT ENGINEERING LETTER REPORT ENNIS JOSLIN ROAD EXTENSION #E15109 8896.B5.04 Oct. 2015 The Engineering Letter Report (ELR) recommends use of flexible pavement section to retain continuity with existing sections at each end of project. Additional factors supporting this recommendation are fact that geometry proposed may change in future rehabilitation work and flexible pavements provide better potential for expansion than do rigid pavements. Finally, cost is a significant factor driving this project and flexible pavements have a significantly lower upfront cost and similar long term cost. Attached is an analysis comparing initial cost factors associated with flexible and rigid pavements for this project. Murray F. Hudson, R.E. Urban Engineering (361)854-3101 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 www.urbcnen0.com TBPE Firm #145 TBPLS Firm #10032400 FAX (361)854-6001 Typical Pricing Differences between Concrete (Rigid) and Hot -Mix (Flexible) Type Pavements in City of Corpus Christi Concrete Pavement Pricing Item Unit Price Quantity Unit Extension 8" Conc. $ 8.00 157,500 SF $ 1,260,000.00 1" TY D $ 10.00 17,500 SY $ 175,000.00 6" Base $ 14.00 18,700 SY $ 261,800.00 12" Subgrade $ 4.00 18,700 SY $ 74,800.00 Block Curb $ 4.00 5,314 LF $ 21,256.00 Excavation $ 8.00 15,000 Sy $ 120,000.00 $ 1,912,856.00 Flexible Pavement Pricing Unit Cost @ $17,500 SY $109.31/SY Item Unit Price Quantity Unit Extension Unit Cost @ $17,500 SY Excavation $ 10.00 15,000 SY $ 150,000.00 2" TYD $ 11.00 17,500 SY $ 192,500.00 4" TY B $ 18.75 17,500 SY $ 328,125.00 Prime Coat $ 0.50 17,500 SY $ 8,750.00 14" Base $ 27.00 18,700 SY $ 504,900.00 Geogrid $ 3.45 18,700 SY $ 64,515.00 12" Subgrade $ 5.00 18,700 SY $ 93,500.00 C & G $ 21.00 5,314 LF $ 111,594.00 $ 1,453,884.00 $83.08/SY Premium for Concrete Pavement vs. Flexible Pavement is ± 25% INFORMAL STAFF REPORT MEMORANDUM To: Margie C. Rose, City Manager Thru: Mark Van Vleck, P.E., Assistant City ManagerOa Valerie H. Gray, P.E., Executive Director Public Works From: Jeff Edmonds, P.E., Director of Engineering Services Date: February 2, 2017 Subject: CITY COUNCIL ACTION REQUEST (CCAR) — January 31, 2017 BIDDING STREET BOND PROJECTS WITH BOTH PORTLAND CEMENT CONCRETE (PCC) AND HOT -MIX -ASPHALT -CONCRETE (HMAC) ISSUE: During the January 31, 2017 City Council meeting, Mayor Pro Tempore Vaughn requested Staff to provide an informal report explaining past council directives relative to the selection of PCC or HMAC for street reconstruction projects. BACKGROUND & FINDINGS: BOND 2012 PROJECTS: In late 2014, there was recognition that the majority of the Bond 2012 projects were under budgeted. Various strategies were considered to address the funding shortfall. A council resolution (see ATTACHMENT 1) was approved on February 17, 2015 that provided specific guidance on project deferrals, bicycle accommodation and pavement design. The pavement design guidance indicated that certain Bond 2012 projects were to be bid HMAC, others PCC and most were to be bid both HMAC and PCC. BOND 2014 PROJECTS: In April 2013 Council approved a Bond 2014 Execution Strategy that involved funding and initiating the project design efforts in advance of the Bond referendum. In July 2013, Council approved a Reimbursement Resolution to fund design efforts and directed staff to begin procuring design services for the streets listed on Proposition One of the Council -approved project list. Those design contracts were approved by City Council in early 2014. Consultants were directed to take the design effort to an Engineering Letter Report (ELR) level (see ATTACHMENT 2) in order to provide a better budget basis for the Bond referendum. Included in the scope of work for the Bond 2014 ELR's was a pavement lifecycle cost analysis and recommendation. Determining the required pavement section is primarily based the Association of State Highway Transportation ©fcials (AASHTO) Guide for Design of Pavement Structures. The inputs include anticipated vehicle loads, the structural properties of the subbase soil, the desired reliability level and the desired service life. For the lifecycle cost analysis, equivalent pavement sections are developed for both HMAC and PCC using a 30 -year service life. The lifecycle analysis is conducted for a minimum of 30 years considering the cost for initial construction, anticpated maintenance and major repairs at the end of the design life. In some cases, there are other factors that may drive a recommendation for HMAC or PCC such as underground utilities, driveway access requirements and compatibility with existing adjacent pavement. After the Bond 2014 referendum passed in November 2014, the design engineers were released to complete the designs for the Proposition One projects. The original guidance in late 2014 was to base the roadway design on the ELR pavement recommendation for each of the projects. That guidance has not been modified. Amendments have been negotiated on many of the Bond 2014 projects. Those amemdments; however, only addressed the Bicycle Mobility Plan recommendations and Value Engineering on drainage systems. Staff is unaware of any formal council direction to negotiate contract amendments to redesign Bond 2014 projects for both PCC and HMAC pavement structures. RESIDENTIAL RECONSTRUCTION: On December 13, 2016 Council passed a Motion of Direction (see ATTACHMENT 3) that the residential reconstruction pilot projects should be designed as both HMAC and PCC pavement structures. That direction was clarified during the December 20, 2016 meeting to indicate that both designs were to be applied for full reconstruction projects and not situations where the existing pavement can be rehabilitated (see ATTACHMENT 4). SEPTEMBER 22, 2015 COUNCIL MEETING: During the January 13th 2017 City Council Retreat, the question was raised about a discussion that took place during the September 22, 2015 City Council meeting. There was a discussion of pavement design during the item awarding the construction contract for the Bond 2012 Proposition 1 Project - Williams Drive Phase 3 (see ATTACHMENT 5). During the discussion, a question was asked whether projects would continue to be bid both ways. There was perhaps a misunderstanding regarding the staff response to this question. Some council members may have considered this as a motion of direction to design all future projects with both HMAC and PCC pavement. The staff response was intended to mean that many of the future projects on both the 2012 and 2014 Bond Programs were being designed to bid both ways. Staff did not consider this discussion as formal direction to pursue design amendments for all Bond 2014 projects that were not scoped at that time to bid with both HMAC and PCC pavement. NEXT STEPS: Staff will continue with the designs of the Bond 2012 projects in accordance with the February 2015 resolution. Additionally, staff has reviewed the Bond 2014 ELR recommendations and determined which projects could be designed with both PCC and HMAC without significantly impacting the schedule. Staff is proposing to include three projects (current ELR's recommended HMAC) that will be re - scoped and designed to include a PCC and HMAC pavement structure. This will involve negotiation of staff -approvable contract amendments. The attached table (see ATTACHMENT 6) shows the currently proposed and recommended pavement structure for the Bond 2014 projects. FEBRUARY 17, 2015 CITY COUNCIL RESOLUTION ATTACHMENT 1 Resolution directing staff to proceed with bidding remaining Bond 2012 Protects; and providing direction on specific projects. WHEREAS, at the regular council meetings of January 27, 2015 and February 17, 2015, staff presented the City Council with information related to the Bond 2012 program; WHEREAS, Council has considered general items applicable to all projects as well as items that apply to individual projects; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. To the extent that the funds authorized under the Bond 2012 Proposition 1 are insufficient to cover total project costs, the City will issue Certificates of Obligation (COs) to provide additional funding. SECTION 2. The following Bond 2012 projects are directly affected by the new Harbor Bridge construction and will be deferred and reassessed at a later date: the Twigg Street Project, from Shoreline Boulevard to Lower Broadway Street; and the Leopard Street Project, from Crosstown Expressway to Palm Drive. SECTION 3. The following streets recommended to be constructed with Hot Mix Asphalt Concrete (HMAC) will be bid for both HMAC and Concrete unless underlying structural conditions warrant otherwise: South Alameda Street, from Ayers Street to Louisiana Avenue; South Staples Street, from Brawner Parkway to Kostoryz Road; Staples Street from 1-37 to Morgan Avenue; Kostoryz Road Project, from Brawner Parkway to Staples Street, and Williams Drive, from South Staples Street to Airline Road. SECTION 4. The following projects are to be designed and constructed without designated bike lanes: Kostoryz Road Project, from Brawner Parkway to Staples Street; Greenwood Drive Project, from Gollihar Road to Home Road, and Tuloso Road Project (wide shoulders only), from 111-37 to Leopard Street. SECTION 5. In connection with the following project, staff will plan a future hike and bike trail project along Airport Ditch through H.P. Garcia Park with access to Greenwood at Home Road and Gollihar Road: the Greenwood Drive Project, from Gollihar Road fa Home Road. SECTION 6. The following project is to be designed and constructed to improve pedestrian/ADA crossings at both Kostoryz Road and Texan Trail to replace the 030482 Page 1 o13 INDEXED existing crosswalk to Ray High School: the South Staples Street Project, from Brawner Parkway to Kostoryz Road. SECTION 7. Exhibit "A" (attached and incorporated herein), describes more fully the design and construction directives for certain projects. SECTION 8. Staff Is directed to proceed with the Bond 2012 Program. ATTEST: P.Ick,ex. Rebecca Huerta City Secretary H C OF CORPUS CHRISTI Nelda Martinez Mayor Page 2 of 3 EXHIBIT A BOND 2012 Streets: 1 Discussion and Notes: • • Twigg Leopard Remain on Deferral. • Morgan (Staples to Crosstown) • • Include in active project list (additional funding may be required). Continue coordination with Hospital including monthly meetings are held with hospital and development. • • • Alameda Staples (1-37 to Morgan) Williams • Bid with both Concrete and HMAC. • Kostoryz • Bid with both Concrete and HMAC; • No Bike Lane; • Evaluate bicycle connectivity to Del Mar and nearby schools during final design. • Staples (Kostoryz to Brawner Pkwy) • • Bid with both Concrete and HMAC Existing crosswalk to Ray High School removed with improved pedestrian/ADA crossings at both Kostoryz and Texan Trail. This was coordinated with Ray HS, Police, Traffic Engineer, and RTA to improve safety for parents, children and general public. • Tuloso • Constructed as concrete with wide shoulders to accommodate bikes. • Ocean Drive • Constructed as HMAC; HMAC recommended to avoid potential joint failures (separation, raised & depressed panels, cracking, etc.) assodated with poor subgrade materials (dredged fill). • Greenwood • No Bike Lane; plan future project for hike & bike along Airport Ditch through H.P. Garcia Park with access to Greenwood at Horne and Gallihar. • Holly • Proposed median approximately 70% Xeriscape plantings and 30% grass is under review for additional Hardscape, project is a 80/20 shared cost with TxDOT (80%). Page 3 of 3 Corpus Christi, Texas U' of , 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 Aky SEPTEMBER 12, 2014 SAMPLE ENGINEERING LETTER REPORT (ELR) EXCERPT ATTACHMENT 2 FINAL ENGINEERING LETTER REPORT GOLLIHAR ROAD IMPROVEMENTS Kostoryz Road to Weber Road (Bond 2014) CITY PROJECT NO(s) E13088 & E13089 SUBMITTED TO: CITY OF CORPUS CHRISTI, TEXAS CAPITAL PROGRAMS Corpus Chr sti Capital Programs SUBMITTED BY: raRVE, Inc. engineering — surveying TBPE Firm Reg. No. F-2037 September 12, 2014 Table of Contents ExecutiveSummary ................... I. Introduction Z 11. Street Improvements ? A. TRAFFIC STUDY & SIGNAL IMPROVEMENTS 3 B. PAVEMENT IMPROVEMENTS 4 C. DRIVEWAYS, SIDEWALKS AND CURB RAMP IMPROVEMENTS 4 D. RTA (BUS) IMPROVEMENTS 5 E. STRIPING AND SIGNAGE IMPROVEMENTS 5 III. Drainage Improvements 5 A. EXISTING CONDITIONS AND PROJECT OBJECTIVES 5 B. STRUCTURAL ANALYSIS OF THE EXISTING BOX CULVERTS 6 C. STORM SEWERIMPROVEMENTS ........................... 7 IV. Water Improvements 9 V. Wastewater Improvements 9 VI. Dry Utility Improvements l0 VII. Traffic Control 1 1 VIII. Opinion of Probable Cost l 2 IX. Summary & Engineer Recommendations 13 APPENDICES Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Appendix 1 Appendix J Appendix K Appendix L Appendix M Appendix N — Existing Conditions Map — Proposed Street & Utility improvements — Private Improvements in Right -of -Way — Traffic Study Merno — Geotechnical Report — 30 -Year Pavement Life Cycle Cost Analysis — Drainage Report & Supplement — Culvert Evaluation Report — Local Area Drainage Map — Ultimate Offsite Drainage Improvements — Existing Storm Trunk Line Profile — Proposed Storm "Trunk Line Profile — Existing 14" HP Gas Line Profile — Opinion of Probable Cost Gollihar Road Improvements — Kostoryz Road to Weber Road Final Engineering Letter Report Executive Summary On March 18, 2014 the City of Corpus Christi City Council executed a contract for engineering services with RVE, Inc. ("RVE") for Gollihar Road Improvements — Kostoryz Road to Weber Road (City Project No(s) E13088 & E13089) — the "Project". On March 20, 2014, RVE received a Notice to Proceed on the Project from the City Engineer. The Project includes the complete reconstruction of Gollihar Road from Kostoryz Road to Weber Road, approximately 5,300 feet in length. The objectives of the Project are to replace the existing deteriorated hot -mix asphalt concrete (1-HMAC) road, sidewalks and curb ramps with new infrastructure, provide bike lanes inside the curbs on both sides of the roadway, increase the capacity of the existing underground storm sewer system and upgrade the existing water and wastewater infrastructure. The Project will he funded by two (2) 2014 Bond Projects: Golliltar Road from Kostoryz Road to Carroll Lane (City Project No. E13089) and Gollihar Road from Carroll Lane to Weber Road (City Project No. E13088). The Project will be bid, however, as one project. Per the City's Urban Transportation Plan, Gollihar Road from Kostoryz Road to Weber Road is classified as an Al Arterial Street, which is to contain five (5) lanes in a 95' right-of- way. The existing road contains five (5) lanes - two (2) travel lanes in each direction and a center. continuous left -turn lane — in an 80' right-of-way. The Project does not include right-of-way acquisition to create a 95' right-of-way. The 5 -lane configuration will be maintained with the Project, however, in order to provide bike lanes within the curb on both sides of the road within the existing 80' right-of-way, the lane widths will be reduced. Two (2) 10.5' wide travel lanes will be provided in both directions with an II" wide continuous left -turn lane down the middle. Two (2) 4' wide bike lanes will be created on both sides of the new road adjacent to the curb. Tied, 5' wide concrete sidewalks will be provided on both sides of the new road. The total width of surface improvements is 75' with minor variances along the Project length, which allows a 2' to 3' separation between the back of proposed sidewalk and the 80' right-of-way. RVE recommends a new pavement section composed of HMAC based upon facts presented in this report. The local underground storm sewer collection system (laterals and curb inlets) will be replaced with new infrastructure with a 25 -year storm capacity. Additional large box culverts will be installed adjacent to the existing storm trunk line (box culverts) beneath Gollihar Road to increase the existing capacity to a 25 -year frequency rain event in accordance with the City's Drainage Criteria Manual. All non -PVC water laterals and all VCP wastewater mains and laterals will be replaced with new infrastructure. All wastewater manholes will be replaced or rehabilitated with fiberglass manholes or liners. The Project will be funded through a combination of street funds (2014 Bond) and C.I.P. utility funds. The City's estimated construction budget is $16.3 million. The preliminary Opinion of Probable Cost of the Project is $13.8 million: $4.3 million for street improvements and $9.5 million for utility improvements. Gollihar Road Improvements -- Kostoryz Road to Weber Road Final Engineering tetter Report Page 1 with the 60% Submittal Package. PAVEMENT IMPROVEMENTS On May 7, 2014, Rock Engineering and Testing, Inc. ("ROCK") prepared a geotechnical report containing information on the existing soils and pavement recommendations. ROCK performed eleven (11) pavement/soil borings in the field. Six (6) of the borings were taken to a depth of 20', and five (5) were taken to a depth of 5'. ROCK's report is attached in Appendix E. RVE: analyzed two (2) 30 -year pavement sections listed below: - Hot -mix, asphalt concrete (HMAC) section: and - Reinforced concrete section. We performed a 30 -year Life Cycle Cost Analysis (LCCA) on the two (2) options to determine the more economical section. Based upon the existing soil conditions on the Project, ROCK recommended the following 30 -year pavement sections: HMAC Pavement 2.0" Type `D' HMAC over 3.0" Type 'B' HMAC over 9" Type 'A', Grade 1 Limestone Base over TX -5 Geogrid (or equal) Reinforced Concrete Pavement 8" Jointed, Reinforced Concrete over 1" Type 'D' HMAC over 6" Type 'A', Grade I Limestone Base Typically, subgrade soils in the Corpus Christi area are found to be highly expansive with a Plasticity Index between 30 and 40. In those soil conditions, RVE recommends lime -stabilization of the subgrade under new pavement. The average Plasticity Index of the subgrade soils encountered on this Project, however, is 20. As such, lime -stabilization of the subgrade is not recommended on the Project. RVE. used the Federal Highway Administration's (FHWA) RealCost V2.5 program to perform a 30 -year LCCA on the two (2) pavement section options -- attached in Appendix F. The results of the analysis indicate that the Reinforced Concrete Pavement section is the more economical section after 30 years when both City Costs and User Costs are considered. The analysis results for each pavement option are listed below. The number in RED represents the lesser cost for each category. Pavement Section I-IMAC Pavement Reinf. Concrete Pavement Initial Construction Cost $2.82 Million $4.00 Million 30 -Yr. Present Value Cost (w/o User Costs) $3.72 Million $4.30 Million 30 -Yr. Present Value Cast (wl User Costs) $5.75 Million $6.00 Million Based upon the cost comparison presented above, RVE recommends that the City use the HMAC pavement option for the new road surface. Gollihar Road Improvements - Kostoryz Road to Weber Road Final Engineering tetter Report Page 4 DECEMBER 13, 2016 CITY COUNCIL MEETING MINUTES ATTACHMENT 3 City Council Meeting Minutes December 13, 2016 Council Member Garza made a motion to approve the ordinance, seconded by Council Member McComb. This Ordinance was passed on second reading as amended and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Hunter, Council Member Rubio, Council Member Vaughn, Council Member Guajardo, Council Member McComb. Council Member Smith and Mayor McQueen Absent: 1 - Council Member Molina Abstained: 0 Enactment No: 031011 17, Second Reading Ordinance - Appropriating funds and approving Engineering Design Contracts for Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive Ordinance appropriating 52,500,000 from the Unreserved Fund Balance in No. 1042 Residential and Local Street Fund for the Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive; amending the FY 2017 Operating Budget adopted by Ordinance No. 030965; authorizing the City Manager, or designee, to execute a contract for engineering design services with Urban Engineering of Corpus Christi, Texas in the amount of $88,420 for design of Ralston Avenue and Freese & Nichols, Inc. of Corpus Christi, Texas in the amount of 597,764 for the design of Rogerson Drive. Mayor McQueen referred to item 17. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to appropriate $2.5 million from the Residential and Local Street Fund for the Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive and to execute two design contracts, one with Urban Engineering for the design of Ralston Avenue from Staples Street to Alameda, and one with Freese and Nichols for the design of Rogerson Drive from McArdle to Sunnybrook. Staff will use these two projects to provide better pricing information and data to further develop the program. Projects are planned to go out for bid in the May/June 2017 timeframe with construction projected for July 2017. Council members spoke regarding the following topics; the use of internal staff or consultants to monitor the program; Ralston Avenue and Rogerson Drive being two good candidates for the program; bidding both asphalt and concrete; what ether cities are doing on residential streets; the reason the engineering fees are different for the two projects; a future discussion of the use of concrete when developing new neighborhoods; the budgeted amount for residential and local streets; the initial intent of staff to design both streets using asphalt; the pothole repairs on both streets; public notification for residents regarding construction on the streets; a lifecycle cost analysis for concrete and asphalt; the current cost for concrete; whether the funding will Include curb and gutter; the cost matrix used to determine the difference In cost between pothole repair and reconstruction; options for cost-plus contracts; the percentage that these test projects are of all residential streets Corpus Christi Page 12 Printed on 12128/2016 City Council Meeting Minutes December 13, 2016 that require repairs; the opportunity to manufacture our own materials; creation of a council committee for residential streets; financing for residential streets; and the test projects providing better pricing information and data. Mayor McQueen called for comments from the public. Abel Alonzo, 1701 Thames, spoke in support of the use of concrete for residential streets. Sir Frederick von USA King VII, 1442 Arlington Drive, spoke in support of the use of asphalt. MOTION OF DIRECTION Council Member Vaughn made a motion directing the City Manager to bid the projects in both concrete and asphalt, seconded by Council Member Guajardo. This Motion of Direction was passed with the following vote: McQueen, Garza, Hunter, Guajardo, McComb, Molina, Rubio, and Vaughn, voting "Aye", Smith voting "No". Council Member Garza made a motion to approve the ordinance, seconded by Council Member Rubio. This Ordinance was passed on second reading and approved with the following vote: Aye: 9 - Council Member Garza, Council Member Hunter, Council Member Rubio, Council Member Vaughn, Council Member Guajardo, Council Member McComb, Council Member Smith, Mayor McQueen and Council Member Molina Abstained: 0 Enactment No: 031013 18. Second Reading Ordinance - Continuing Texas Municipal Retirement System (TMRS) Updated Service Credits for Current Participants and Increases for Prior and Current Annuities Ordinance authorizing and allowing, under the Act governing the Texas Municipal Retirement System, "Updated Service Credits" in said system for service performed by qualifying members of such system who presently are members of the City of Corpus Christi; providing for increased prior and current service annuities for retirees and beneficiaries of deceased retirees of the City; establishing an effective date for such actions; and providing for severance. Mayor McQueen referred to Item 18. Interim Director of Human Resources Steven Viera stated that the purpose of this item is to continue the Texas Municipal Retirement System (TMRS) updated service credits for current participants and increases for current and prior annuities. These provisions adhere to the terms of the collective bargaining agreement with the Corpus Christi Police Officers' Association. Mr. Viera explained that unlike most public retirement systems, TMRS is a hybrid design instead of a defined benefit plan based on the percentage of salaries such as the City of Dallas. The TMRS plan is cash balanced in nature, meaning it is based on the contributions made by the employee, the matching amount by the City and interest income credited to the employee's account over the employee's career. Mr. Viera provided Corpus Christi Page 13 Printed on 1 2/2 812 01 6 December 20, 2016 CITY COUNCIL MEETING MINUTES ATTACHMENT 4 City Council Meeting Minutes December 20, 2016 MOTION TO RECONSIDER Council Member McComb made a motion to reconsider the motion of direction for Item No. 17 on the December 13, 2016 agenda, seconded by Council Member Vaughn. This motion to reconsider was passed and approved with the following vote: McQueen, Guajardo, Hunter, McComb, Molina, Smith, Vaughn, and Garza, voting' .Aye"; Rubio voting "No` MOTION OF DIRECTION Council Member McComb made a motion directing the City Manager to bid reconstruction projects in both concrete and asphalt, not repair projects, seconded by Council Member Smith and passed unanimously. J. CONSENT AGENDA: (ITEMS 3 - 26) 3. 4. Approval of the Consent Agenda Mayor McQueen referred to the Consent Agenda. Council members requested that items 8, 12, 13, 15, 16, 17, 18 be pulled for individual consideration. City Manager Rose requested that Item 26 be pulled for individual consideration. A motion was made by Council Member Garza, seconded by Council Member Smith, to approve the Consent Agenda. The consent agenda items were passed and approved by one vote as follows: Aye: 9 - Mayor McQueen, Council Member Garza, Council Member Guajardo, Council Member Hunter. Council Member McComb. Council Member Molina, Council Member Rubio. Council Member Smith and Council Member Vaughn Abstained: 0 Appointing Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation Motion appointing Council Members Dan McQueen, Michael T. Hunter, Joe McComb, Paulette Guajardo, Carolyn Vaughn, Ben Molina, Lucy Rubio, Greg Smith, and Rudy Garza as Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation. This Motion was passed on the Consent Agenda. Enactment No: M2016-162 Appointing Board Members to the Coastal Bend Health Facilities Development Corporation and the Coastal Bend Cultural Education Facilities Finance Corporation Motion appointing Council Members Dan McQueen, Michael T. Hunter, Joe McComb, Paulette Guajardo, Carolyn Vaughn, Ben Molina, Lucy Rubio, Greg Smith, and Rudy Garza as Board Members to the Coastal Bend Health Facilities Development Corporation and Corpus Christi Page 4 Printed on 1117120}7 SEPTEMBER 22, 2015 CITY COUNCIL MEETING MINUTES ATTACHMENT 5 City Council Meeting Minutes September 22, 2015 18. First Reading Ordinance - Construction Contract and Construction Materials Testing Contract for Williams Drive Phase 3 from Staples Street to Airline Road (Bond 2012) Ordinance appropriating anticipated revenues; authorizing the City Manager or designee to execute a construction contract with Reytec Construction Resources, Inc. of Houston, Texas in the amount of $8,698,783.50 for the Base Bid; and to execute a construction materials testing contract with Tolunay-Wong Engineers, Inc. of Corpus Christi, Texas in the amount of $112,135 for Williams Drive Phase 3 from Staples Street to Airline Road (BOND 2012). Mayor Pro Tem Vaughn referred to Item 18. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to execute a construction contract with Reytec Construction Resources, Inc. and a construction materials testing contract with Tolunay-Wong Engineers, Inc. for Bond 2012 Street Project, Williams Drive Phase 3 from Staples Street to Airline Road. This project is a joint project with the City of Corpus Christi and the Texas Department of Transportation (TxDOT), which includes: the widening of Williams Drive and the replacement of the existing two-lane asphalt road with a new four -lane concrete road; new 10 -foot wide, combined pedestrian/bicycle paths on both side of the street; the replacement of six RTA pads; and utility improvements. The project is estimated to be completed by February 2017. There were no comments from the public. Council members spoke regarding the following topics: bidding the project with asphalt and concrete (Additive Alternate Nos. 1 and 2); Indication that other projects are being bid with concrete as the lowest bids; and Additive Alternate No. 2 including wastewater lines. Council Member Garza made a motion to approve the ordinance, seconded by Council Member McIntyre. This Ordinance was passed on first reading and approved with the following vote: Aye: 6 - Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Rubio, Council Member Scott and Council Member Vaughn Absent: 3 - Mayor Martinez, Council Member Riojas and Council Member Rosas Abstained: 0 19. First Reading Ordinance - Appropriating capital proceeds accrued from June 1, 2014 through July 31, 2015 in their respective Capital Improvement Program Funds Ordinance appropriating amounts of (a) $13,184.50; (b) $290,604.57 (c) $484,822.06; (d) $47,395.11; and (e) $192,120.28 into the Airport CIP, Bond Proceed, Utility Revenue Bond, Specialty Bond Proceeds and other Unappropriated Funds, respectively, for the following purposes: City's match for future FAA Grant Projects, Bayfront, Public Facilities, Fire, Police, Public Health and Safety, Sanitary Landfill, Corpus Christi Page 12 Printed on 9/29/2015 BOND 2014 CURRENT AND PROPOSED PAVEMENT RECOMMENDATION ATTACHMENT 6 Street Bond Projects - Pavement Recommendations PROJECT NUMBER PROJECT TITLE Bond STATUS Current Design Proposed Design 113099 Waldron Rd (Airdame Dr to Caribbean Or) Bond 2014 Prop 1 Complete HMAC HMAC E13100 Santa Fe 5t (Elizabeth 5t to Hancock 5t) Bond 2014 Prop 1 Complete HMAC HMAC 113095 Southern Minerals Rd (tip River Rd to iH-37) Bond 2014 Prop 1 Construction PCC PCC E13086 Alameda 5t (Kinney 5t to ligan St) Bond 2014 Prop 1 Construction HMAC HMAC E1S111 North Padre Island Beach Access Road 3A Bond 2014 Prop 2 Construction PCC PCC E13088(E13089 Gollihar Rd (Weber Rd. to Carroll In.) Fiord 2014 Prop 1 Council Award HMAC HMAC 5130137 Galli har Rd (South Staples to Weber Rd) Bond 2014 Prop 1 Council Award HMAC HMAC 015109 Ennis loslin Road Extension (Hotly to Williams) Bond 2014 Prop 7 Cnnec1 Award HMAC HMAC 013092 Ayers St (Alameda 5t to Ocean Dr) Bond 2014 Prop 1 Bidding HMAC HMAC E13096 Yorktown Blvd (Everhart Rd to Staples St) Bond 2014 Prop 1 Pending Bid Both Both (13097 Carroll Lane{Houston St to MCArdie Rd) Bond 2014 Prop 1 Pending Bid HMAC HMAC €13091 Carona Dr (Flynn Pkwy to Everhart Rd) Bond 2014 Prop 1 Pending Bid HMAC HMAC €15122 Creek View Drive Extension Bond 2014 Prop 2 Final HMAC HMAC E15111 North Padre Island Beath Access Road 2 Bond 2014 Prop 2 Pre-FVnal PCC PCC 513099 Old Robstown Rd (Highway 44 to Leopard St) Bond 2014 Prop 1. Pre -Final HMAC HMAC €13093 Yorktown Blvd (Lake Travis to Everhart Rd) Bond 2014 Prop 1 Pre -Final HMAC HMAC 015106 Ayers St- Pedestrian improvements and Turn Lane Bond 2014 Prop 2 75% HMAC HMAC 113094 Staples St (Alameda 5t to Morgan 5t) Bond 2014 Prop 1 60% Both Both (15107 Chaparral Street - Phase 2 (Schatael to Taylor) Bond 2014 Prop 2 30% HMAC Both 115110 Flato Road - Agnes to Bates Bond 2014 Prop 30% HMAC Both E15112 Rodd Field Road Expansion (Saratoga to Yorktown) Bond 2014 Prop 2 30% HMAC Both 133090 Morgan Ave (Staples St to Ocean Dr) Bond 2014 Prop 1 On Ho)4 Both Both PCC HMAC Both Advertised or in Construction AGENDA MEMORANDUM Future Item for the City Council Meeting of February 28, 2017 Action Item for the City Council Meeting of March 21, 2017 DATE: February 28, 2017 TO: Margie C. Rose, City Manager FROM: Dan Grimsbo, Interim Executive Director of Utilities Dang@cctexas.com (361) 826-1718 Kim Baker, Assistant Director of Financial Services, Purchasing Division KimB2 c(�cctexas.com (361) 826-3169 Supply Agreement for Sludge Dewatering Polymer for Wastewater Plants CAPTION: Motion authorizing City Manager, or designee, to execute a supply agreement with Polydyne, Inc., of Riceboro, Georgia for the purchase of Sludge Dewatering Polymer ("chemical") in response to Request for Bid No. 991 based on the lowest, responsive, responsible bid for a total amount not to exceed $96,946.20, with an estimated expenditure of $48,473.10 in FY2016-2017 and funded by the Wastewater Fund. The term of the agreement is for one year with an option to extend for up to two additional one-year periods, subject to the sole discretion of the City. PURPOSE: This item is to approve a supply agreement for Sludge Dewatering Polymer for Wastewater Plants. BACKGROUND AND FINDINGS: Polymer is used for de -watering of digested sludge using belt filter presses at the City's Allison, Broadway, Greenwood, Laguna Madre, Oso and Whitecap Wastewater Treatment Plants. Only chemicals known as organic polymer, which are synthetic, high molecular weight, water-soluble polyelectrolytes, manufactured specifically for use as flocculants for sludge conditioning will be allowed. ALTERNATIVES: None 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: Utilities Department — Wastewater FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $2,612,381.03 $48,473.10 $2,660,854.13 Encumbered / Expended Amount $1,598,121.87 $0.00 $1,598,121.87 This item $48,473.10 $48,473.10 $96,946.20 BALANCE $965,786.06 $0.00 $965,786.06 Fund(s): Wastewater Comments: The initial contract term total is $96,946.20, of which $48,473.10 will be funded in FY2016- 2017. The total estimated contract value will be $290,838.60 if all options years are executed. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation Supply Agreement CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LYDIA JUAREZ BID TABULATION BID EVENT NO. 991 SLUDGE DEWATERING POLYMER FOR WASTEWATER PLANTS ITEM DESCRIPTION UNIT QTY * Univar USA, Inc. Kent, Washington Solenis, LLC Wilmington, Delaware ** Color Source, Inc. Corpus Christi, Texas ***Sterling Columbia, Tennessee "" Kemira Water Solutions Lawrence, Kansas Polydyne, Inc. Riceboro, Georgia UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE 1 Sludge Dewatering Polymer Allison Treatment Plan} LBS 16,000 NO BID $ 0.83 $ 13,280.00 NO BID NO BID NO BID $ 0.702 $ 11,232.00 2 Sludge Dewatering Polymer Broadway Treatment Plant LBS 18,700 NO BID $ 0.83 $ 15,521.00 NO BID NO BID NO BID $ 0.702 $ 13,127.40 3 Sludge Dewatering Polymer Greenwood Treatment Plan} LBS 39,000 NO BID $ 0.83 $ 32,370.00 NO BID NO BID NO BID $ 0.702 $ 27,378.00 4 Sludge Dewatering Polymer Laguna Madre Treatment Plant LBS 6,900 NO BID $ 0.83 $ 5,727.00 NO BID NO BID NO BID $ 0.702 $ 4,843.80 5 Sludge Dewatering Polymer Oso Treatment Plan} LBS 55,200 NO BID $ 0.83 $ 45,816.00 NO BID NO BID NO BID $ 0.702 $ 38,750.40 6 Sludge Dewatering Polymer Whitecap Treatment Plan} LBS 2,300 NO BID $ 0.83 $ 1,909.00 NO BID NO BID NO BID $ 0.702 $ 1,614.60 Total NO BID $ 114,623.00 NO BID NO BID NO BID $ 96,946.20 * Bidder showed interest in submitting a letter of no bid however, was not able to meet requirements at this time. ** Bidder provided a response of no bid. *** Bidder showed interest in submitting a letter of no bid however, was unable to offer a competive bid at this time. **** Bidder showed interest in submitting a letter of no bid however, was unable to offer a bid at this time. SUPPLY AGREEMENT NO. 991 Sludge Dewatering Polymer for Wastewater Plants THIS Sludge Dewatering Polymer for Wastewater Plants Supply Agreement (Agreement) is entered into by and between the City of Corpus Christi, a Texas home -rule municipal corporation ("City") and Polydyne, Inc. ("Supplier"), effective for all purposes upon execution by the City Manager or the City Manager's designee ("City Manager"). WHEREAS, Supplier has bid to provide Sludge Dewatering Polymer for Wastewater Plants in response to Request for Bid No. 991 ("RFB"), which RFB includes the required scope of work and all specifications and which RFB and the Supplier's bid response are incorporated by reference in this Agreement as Exhibits 1 and 2, respectively, as if each were fully set out here in its entirety. NOW, THEREFORE, City and Supplier agree as follows: Scope. Supplier will provide Sludge Dewatering Polymer for Wastewater Plants in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. "Goods," "products", and "supplies", as used in this Agreement, refer to and have the same meaning. 2. Term. This Agreement is for 12 months. This Agreement includes an option to extend the term for up to two additional 12 -month periods ("Option Period"), provided, the parties do so prior to expiration of the original term or the then -current Option Period. The decision to exercise the option to extend the term of this Agreement is, at all times, within the sole discretion of the City and is conditioned upon the prior written agreement of the Supplier and the City Manager. 3. Compensation and Payment. The total value of this Agreement is not to exceed $96,946.20, subject to approved extensions and changes. Payment will be made for goods delivered and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. All pricing must be in accordance with the attached Bid/Pricing Schedule, as shown in Attachment B, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. 4. Contract Administrator. The Contract Administrator designated by the City is responsible for approval of all phases of performance and operations City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1/16 Page 1 of 7 under this Agreement, including deductions for non-performance and authorizations for payment. The City's Contract Administrator for this Agreement is as follows: Name: Gerald Garcia Department: Wastewater, Utilities Treatment Phone: 361-826-1806 Email: GeraldG@cctexas.com 5. Insurance. Before performance can begin under this Agreement, the Supplier must deliver a certificate of insurance ("001"), as proof of the required insurance coverages, to the City's Risk Manager and the Contract Administrator. Additionally, the COI must state that the City will be given at least 30 days' advance written notice of cancellation, material change in coverage, 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 10 days of the City Manager's written request. Insurance requirements are as stated in Attachment C, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. 6. Purchase Release Order. For multiple -release purchases of products to be provided by the Supplier over a period of time, the City will exercise its right to specify time, place and quantity of products to be delivered in the following manner: any City department or division may send to Supplier a purchase release order signed by an authorized agent of the department or division. The purchase release order must refer to this Agreement, and products will remain with the Supplier until such time as the products are delivered and accepted by the City. 7. Inspection and Acceptance. Any products that are delivered but not accepted by the City must be corrected or replaced immediately at no charge to the City. If immediate correction or replacement at no charge cannot be made by the Supplier, a replacement product may be bought by the City on the open market and any costs incurred, including additional costs over the item's bid price, must be paid by the Supplier within 30 days of receipt of City's invoice. 8. Warranty. The Supplier warrants that all products supplied under this Agreement are new, quality items that are free from defects, fit for their intended purpose, and of good material and workmanship. The Supplier warrants that it has clear title to the products and that the products are free of liens or encumbrances. In addition, the products purchased under this City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1/6 Page 2 of 7 Agreement shall be warranted by the Supplier or, if indicated in Attachment D by the manufacturer, for the period stated in Attachment D. Attachment D is attached to this Agreement and is incorporated by reference into this Agreement as if fully set out here in its entirety. 9. Quality/Quantity Adjustments. Any quantities indicated on the Bid/Pricing Schedule are estimates only and do not obligate the City to order or accept more than the City's actual requirements nor do the estimates restrict the City from ordering less than its actual needs during the term of the Agreement and including any Option Period. Substitutions and deviations from the City's product requirements or specifications are prohibited without the prior written approval of the Contract Administrator 10. Non -Appropriation. The continuation of this Agreement after the close of any fiscal year of the City, which fiscal year ends on September 30th annually, is subject to appropriations and budget approval specifically covering this Agreement as an expenditure in said budget, and it is within the sole discretion of the City's City Council to determine whether or not to fund this Agreement. The City does not represent that this budget item will be adopted, as said determination is within the City Council's sole discretion when adopting each budget. 11. Independent Contractor. Supplier will perform the work required by this Agreement as an independent contractor and will furnish such products in its own manner and method, and under no circumstances or conditions will any agent, servant or employee of the Supplier be considered an employee of the City. 12. Subcontractors. Supplier may use subcontractors in connection with the work performed under this Agreement. When using subcontractors, however, the Supplier must obtain prior written approval from the Contract Administrator if the subcontractors were not named at the time of bid. In using subcontractors, the Supplier is responsible for all their acts and omissions to the same extent as if the subcontractor and its employees were employees of the Supplier. All requirements set forth as part of this Agreement, including the necessity of providing a COI in advance to the City, are applicable to all subcontractors and their employees to the same extent as if the Supplier and its employees had performed the work. 13. Amendments. This Agreement may be amended or modified only by written change order signed by both parties. Change orders may be used to modify quantities as deemed necessary by the City. City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1/16 Page 3 of 7 14. Waiver. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 15. Taxes. The Supplier covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes and all other related taxes. Upon request, the City Manager shall be provided proof of payment of these taxes within 15 days of such request. 16. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand -delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows: IF TO CITY: City of Corpus Christi Attn: Joanna Moreno Title: Contract/ Fund Administrator Address: 2726 Holly Road Utilities Department Corpus Christi, Texas 78415 Fax: 361-8261715 IF TO SUPPLIER: Polydyne Inc. Attn: Rick Johnson Title: Regional Sales Manager Address: One Chemical Plant Rd. Riceboro, Georgia 31323 Fax: 912-880-2078 17. SUPPLIER AGREES TO 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 WHATSOEVER ON ACCOUNT OF PERSONAL INJURIES (INCLUDING DEATH AND WORKERS' COMPENSATION CLAIMS), PROPERTY LOSS OR DAMAGE, OR ANY OTHER KIND OF INJURY, LOSS, OR 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 AGREEEMENT OR THE PERFORMANCE OF THIS AGREEMENT, REGARDLESS OF WHETHER THE INJURIES, DEATH OR DAMAGES ARE CAUSED OR ARE CLAIMED City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1 /16 Page 4 of 7 TO BE CAUSED BY THE CONCURRENT OR CONTRIBUTORY NEGLIGENCE OF INDEMNITEES, BUT NOT IF BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH THE FAULT OF ANY OTHER PERSON. SUPPLIER MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING FROM ANY SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF SUPPLIER UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 18. Termination. (A) The City Manager may terminate this Agreement for Supplier's failure to perform the work specified in this Agreement or to keep any required insurance policies in force during the entire term of this Agreement. The Contract Administrator must give the Supplier written notice of the breach and set out a reasonable opportunity to cure. If the Supplier has not cured within the cure period, the City Manager may terminate this Agreement immediately thereafter. (B) Alternatively, the City Manager may terminate this Agreement for convenience upon 30 days advance written notice to the Supplier. The City Manager may also terminate this Agreement upon 24 hours written notice to the Supplier for failure to pay or provide proof of payment of taxes as set out in this Agreement. 19. Assignment. No assignment of this Agreement by the Supplier, or of any right or interest contdined herein, is effective unless the City Manager first gives written consent to such assignment. The performance of this Agreement by the Supplier is of the essence of this Agreement, and the City Manager's right to withhold consent to such assignment is within the sole discretion of the City Manager on any ground whatsoever. 20. Severability. Each provision of this Agreement is considered to be severable and, if, for any reason, any provision or part of this Agreement is determined to be invalid and contrary to applicable law, such invalidity shall not impair the operation of nor affect those portions of this Agreement City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1/16 Page 5 of 7 that are valid, but this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision or part had been omitted. 21. Order of Precedence. In the event of any conflicts or inconsistencies between this Agreement, its attachments, and exhibits, such conflicts and inconsistencies will be resolved by reference to the documents in the following order of priority: A. this Agreement and its attachments B. the bid solicitation document, including addenda (Exhibit 1) C. the Supplier's bid response (Exhibit 2) 22. Certificate of Interested Parties. Supplier agrees to comply with Texas Government Code Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of Interested Parties" as part of this Agreement. 23. Governing Law. This Agreement is subject to all federal, State, and local laws, rules, and regulations. The applicable law for any legal disputes arising out of this Agreement is the law of the State of Texas, and such form and venue for such disputes is the appropriate district, county, or justice court in and for Nueces County, Texas. 24. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written, between the parties. (SIGNATURE PAGE FOLLOWS) City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1/16 Page 6 of 7 SUPPLIER Signature: Printed Name: Mark Schalg Title: Vice -President Date: 2/9/17 CITY OF CORPUS CHRISTI Signature: Printed Name: Title: Date: Attached and Incorporated by Reference: Attachment A: Scope of Work Attachment B: Bid/Pricing Schedule Attachment C: Insurance Requirements Attachment D: Warranty Requirements Incorporated by Reference Only: Exhibit 1: RFB No. 991 Exhibit 2: Supplier's Bid Response City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1/16 Page 7 of 7 1.1 Attachment A: Scope of Work General Requirements/Background Information It is the intent of this specification to describe polymers to be used for de -watering of digested sludge using belt filter presses at the City's Allison, Broadway, Greenwood, Laguna Madre, Oso and Whitecap Wastewater Treatment Plants. Only chemicals known as organic polymer, which are synthetic, high molecular weight, water-soluble polyelectrolytes, manufactured specifically for use as flocculants for sludge conditioning will be allowed. 1.2 Product Specifications A. Polymers shall be emulsion -type only, readily and completely miscible in water at all dilutions and temperatures, and capable of being diluted to any ratio needed to meet dosage requirements. The product shall be a cationic copolymer of acrylamide. The product shall contain no formaldehyde. Active solids concentration must be a minimum of 40%. The polymer materials shall have a shelf life of at least six months at ambient temperatures. The polymer materials in both concentrated and dilute form shall not require special handling, nor shall they pose hazards to employees working with them. The polymer shall not contain any substances which are inhibitory or toxic to bacteria essential to wastewater treatment processes. The materials shall not cause corrosion problems to the City's equipment. The polymers must be compatible with the City's existing storage and handling facilities. B. The product must meet the following performance specifications for each of the City's wastewater treatment plants. Failure to meet these specifications will result in that product being deemed non -conforming: PLANT MINIMUM FEED RATE (gallons/min) MINIMUM FEED SOLIDS MAXIMUM FILTRATE SOLIDS MINIMUM CAKE SOLIDS MAXIMUM POLYMER DOSAGE (lbs/dry ton) ALLISON 70 2 200 16 15 BROADWAY 100 2 200 24 15 GREENWOOD 100 4 200 24 15 OSO 160 2 200 16 15 LAGUNA MADRE 70 2 _ 200 16 15 WHITECAP 70 2 200 16 15 RFB Template 10.10.16 C. PERFORMANCE REQUIREMENTS FOR POLYMER USED AT BROADWAY CENTRIFUGES The Broadway Wastewater Treatment Plant is the only plant using centrifuges. The polymer used for the centrifuges will comply with all other elements of the Performance Specification, expect as amended here: 1. Solids concentration of waste activated sludge: Minimum 10,000 mg/I. 2. Volatile Content of Solids: Less than 74 percent. 3. Total Sludge Feed Rate: a. Design: 450 gallons per minute. b. Minimum: 280 gallons per minute. 4. Total Diluted Polymer and Sludge Feed Rate: a. Design: 500 gallons per minute. b. Minimum: 300 gallons per minute. 5. Cake Dryness: a. At Design Sludge Feed Rate: Minimum 18 percent total solids b. At Minimum Sludge Feed Rate: Minimum 22 percent total solids 6. Maximum centrate total suspended solids: 200 mg/I 7. Maximum polymer dose: 15 lbs. polymer per dry ton solids 1.3 Delivery A. Polymers shall be delivered in 250 gallon totes provided by the Supplier, and unloaded at the wastewater treatment plants. The Supplier shall provide any special equipment necessary for unloading. Deliveries shall be made between 8:00 a.m. and 4:00 p.m., Monday through Friday, excluding holidays, unless otherwise instructed. The frequency of deliveries is dependent upon the requirement of keeping a two-week minimum inventory of polymer for sludge de -watering. The City reserves the right to inspect and reject any polymer shipment if the polymer is defective, or does not meet the requirements of these specifications. Supplier shall invoice each delivery separately. Pricing calculation shall be based on pounds of product delivered. No minimum or maximum purchase of polymer is guaranteed by the City within the duration of the contract. B. Deliveries will be made to the following wastewater treatment plants: Allison Treatment Plant - 4104 Allison Drive, Corpus Christi, Texas Broadway Treatment Plant - 1402 W. Broadway, Corpus Christi, Texas Greenwood Treatment Plant - 6541 Greenwood Drive, Corpus Christi, Texas Laguna Madre Treatment Plant - 201 Jester, Corpus Christi, Texas Oso Treatment Plant - 601 Nile, Corpus Christi, Texas Whitecap Treatment Plant - 13409 Whitecap Blvd., Corpus Christi Texas RFB Template 10.10.16 1.4 Quality Control and Technical Support The Supplier shall establish and maintain a complete Quality Control Program that is acceptable to the Contract Administrator to assure that the requirements of the Contract are provided as specified. The Supplier shall provide technical assistance as needed to ensure that the polymer is performing as per the specifications and that the polymer is being used in the most cost effective manner. 1.5 Special Instructions All materials supplied must comply with all requirements and standards of the Occupational Safety and Health Act (OSHA). All appropriate marking shall be in place before delivery. Items not meeting OSHA specifications will be refused. Safety Data Sheets (SDS) essentially similar to the U.S. Department of Labor form LSB-00 S-5 shall be furnished with the materials delivered. RFB Template 10.10.16 Attachment B: Bid/Pricing Schedule 4 itV• aire i* I II r CITY OF CORPUS CHRISTI BID FORM PURCHASING DIVISION RFB No. 991 SLUDGE DEWATERING POLYMER FOR WASTEWATER PLANTS PAGE 1 OF 1 .852 Date: 1/12/17 Authorized 411141 Bidder: Polydyne Inc. Signature: Ma Schlag, Vice -President 1. Refer to "Instructions to Bidders" and Contract Terms and Conditions before completing bid. 2. Quote your best price for each item. 3. In submitting this bid, Bidder certifies that: a. the prices in this bid have been arrived at independently, without consultation, communication, or agreement with any other Bidder or competitor, for the purpose of restricting competition with regard to prices; b. Bidder is an Equal Opportunity Employer; and the Disclosure of Interest information on file with City's purchasing office, pursuant to the Code of Ordinances, is current and true. c. Bidder is current with all taxes due and company is in good standing with all required governmental agencies. d. Bidder acknowledges receipt and review of all addenda for this RFB. Item Description UNIT QTY Unit Price Total Price 1 Sludge Dewatering Polymer - Allison Treatment Plant CE -1856 LBS 16,000 $0.702/Lb. $11,232.00 2 Sludge Dewatering Polymer - Broadway Treatment Plant CE -1856 LBS 18,700 $0.702/Lb. $13,127.40 3 Sludge Dewatering Polymer - Greenwood Treatment Plant CE -454 LBS 39,000 $0.702/Lb. $27,378.00 4 Sludge Dewatering Polymer £E-1325LBS Laguna Madre Treatment Plant 6,900 $0.702/Lb. $ 4,843.80 5 Sludge Dewatering Polymer - Oso Treatment Plant CE -1323 LBS 55,200 $0.702/Lb. $38,750.40 6 Sludge Dewatering Polymer - LBS 2,300 $0.702/Lb. $ 1,614.60 Whitecap Treatment Plant CE -1856 Total $96,946.20 Attachment C: Insurance Requirements No insurance requirement needed for this supply agreement. Attachment D: Warranty Requirements No warranty requirement needed for this supply agreement. CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-164687 Date Filed: 02/09/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Polydyne Inc. Riceboro, GA United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 199 Supply and Delivery of Polymer 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct, Mark AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said May-K... SC.I/ Signa u °Authorized agent of contracting business entity SchAlg, Vice -President ( , this the day of ___A__ _z 20 1 7 to certify which, witness my hand and seal of office. 1hk Pamela McD my commiJ. ermitt iskIterY Public itA51,44J- ssio.._, . 1 .WireiS Jiffy 28, AJG Signature of officer administer g oath Printed name of officer administering oath Title ofVar administeri g oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 AGENDA MEMORANDUM Public Hearing and First Reading for the City Council Meeting of February 28, 2017 Second Reading for the City Council Meeting of March 21, 2017 DATE: February 6, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, CFM, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Rezoning for Property at 7306 and 7242 South Padre Island Drive (State Highway 358) CAPTION: Case No. 0117-07 Oceanic Development, LTD: A change of zoning from the "RM -1" Multi -family 1 District to the "CG -2" General Commercial District. The property to be rezoned is described as a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2, located on the north side of South Padre Island Drive (State Highway 358) between Rodd Field Road and Lexington Road. PURPOSE: The purpose of this item is to rezone the property to allow development of a Carmax Auto Superstore. RECOMMENDATION: Planning Commission and Staff Recommendation (January 25, 2017): Approval of the change of zoning from the "RM -1" Multi -family 1 District to the "CG -2" General Commercial District. Vote Results For: 6 Against: 0 Absent: 3 BACKGROUND AND FINDINGS: As detailed in the attached report, the applicant is requesting a rezoning from the "RM - 1" Multi -Family 1 District to the "CG -2" General Commercial District for the development of a Carmax Auto Superstore. The property to be rezoned is consistent with the Future Land Use Plan's designation of the property as commercial. It is Staffs opinion, that the requested rezoning will be consistent with the extension of zoning to the southeast. The UDC requires screening to protect the existing, abutting residential use. The requested rezoning would provide uniformity to a parcel that currently has split zoning. ALTERNATIVES: 1. Approve with Conditions. 2. Deny the request. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The subject property is located within the boundaries of the Southside Area Development Plan. The proposed rezoning to the "CG -2" General Commercial District is consistent with the adopted Future Land Use Map and is supported by goals in Plan CC. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal and Planning Commission FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital • •Not applicable Fiscal Year: 2016- 2017 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: Ordinance Presentation - Aerial Map Planning Commission Final Report Ordinance amending the Unified Development Code ("UDC"), upon application by Oceanic Development, LTD. ("Owner"), by changing the UDC Zoning Map in reference to a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2; from the "RM -1" Multi -family 1 Residential District to the "CG -2" General Commercial District; amending Plan CC 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 by Oceanic Development, LTD. ("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, January 25, 2017, during a meeting of the Planning Commission when the Planning Commission recommended approval of the change of zoning from the "RM -1" Multi -family 1 Residential District to the "CG -2" General Commercial District, and on Tuesday, February 28, 2017, 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 Oceanic Development LTD, ("Owner"), the Unified Development Code ("UDC") of the City of Corpus Christi, Texas ("City"), is amended by changing the zoning on a 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2; located approximately 300 feet north of the north right of way of South Padre Island Drive (State Highway 358) between Rodd Field Road and Lexington Road (the "Property"), from the "RM -1" Multi -family 1 Residential District to the "CG -2" General Commercial District (Zoning Map No. 040034), 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. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta City Secretary Mayor K:\DevelopmentSvcs\SHARED\ZONING CASES\2017\0117-07 Oceanic Development, LTD (Carmax)\Council Documents\Ordinance_0117-07 Oceanic Development.docx Page 2 of 2 2.98 Acre Zoning Tract STATE OF TEXAS COUNTY OF NUECES Job No. 42724.13605 November 28, 2016 Fieldnotes, for a 2.98 Acre Zoning Tract, of Lots 1 and 2, Section 28, Flour Bluff and Encinal Farm and Garden Tracts, a map of which is recorded in Volume A, Pages 41-43, of the Map Records of Nueces County, Texas, being a portion of the remainder of an 8.920 Acre Tract, described in a Warranty Deed with Vendors Lien, from Oshman Investments, Ltd., a Texas limited partnership, to Oceanic Development, Ltd., a Texas limited partnership, as recorded in Document Number 2002032580, of the Official Public Records of Nueces County, Texas; the said 2.98 Acre Zoning Tract being more fully described as follows: Commencing, at a 5/8 Inch Iron Rod stamped "URBAN ENGR CCTX" Found, on the Northeast Right -of -Way of South Padre Island Drive, a public roadway, as shown on a Texas Department of Transportation Map (TXDOT), CONST.CSJ:0617-01-170, Sheet 10; Thence, North 28°45'35" East, with the common line of the Southeast line of Lot 2, Block A, Joslin Tracts, a map of which is recorded in Volume 40, Page 2, of the said Map Records, and the Northwest line of the said 8.920 Acre Tract, 313.82 Feet, to a point in the said common line, for the Point of Beginning, and the West corner of this Tract; Thence, North 28°45'35" East, with the said common line, 403.01 Feet, to the West corner of Lot 1, Block 1, The Village at Oso Bay, a map of which is recorded in Volume 67, Page 765, of the said Map Records, for the North corner of this Tract; Thence, South 61 °09'57" East, over and across the said 8.920 Acre Tract, with the Southwest line of the said Lot 1, 327.68 Feet, to a 5/8 Inch Iron Rod stamped "URBAN ENGR CCTX" Found, on the common line of the Northwest line of Lot 4-B, Block A, Joslin Tracts, a map of which is recorded in Volume 35, Page 69, of the said Map Records, and the Southeast line of the said 8.920 Acre Tract, being the South comer of the said Lot 1, for the East corner of this Tract; S 15urvcymt142724186051FN. 427248602 docx Page of 1 (361)854-3101 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 www.urbanene.com TBPE Firm # 145 • TBPLS Firm # 10032400 Exhibit A FAX (361)854-6001 Thence, South 28'50'44" West, with the said common line, 39033 Feet, to a point in the said common line, for the South comer of this Tract, from Whence, a 5/8 Inch Iron Rod stamped "URBAN ENGR CCTX" Found, on the said Northeast Right -of -Way of South Padre Island Drive, bears South 28°50'44" West, 321.90 Feet; Thence, North 63°18'57" West, over and across the said 8.920 Acre Tract, 327.31 Feet, to the Point of Beginning, containing 2.98 Acres (129,930 Sc1Ft) of Land, more or Tess. Grid Bearings and Distances described herein are referenced to the Texas Coordinate System of 1983, Texas South Zone 4205, and are based on the North American Datum of 1983(2011) Epoch 2010.00. Unless this Fieldnotes description, including preamble, seal and signature, appears in its entirety, in its original form, surveyor assumes no responsibility for its accuracy. URBAN ENGINEERING James D. Carr, R.P.L.S. License No. 6458 S'Surveying\427241B6051FN 4272413602 docx Page 2 oft (361)854-3101 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 www.urbanenR.com TBPE Firm # 145 • TBP15 Firm # 10032400 Exhibit A FAX (361)854-6001 I r 1 Lot 2, Joslln Vol. 40, Pg. Doc. No. 201301 Owner. Carncapp a Texas limited Block A Tract 2, U.R.N.C.T. 7827, 0.P.R,N,C,T. Sky Harbor, LLC, liability company 5' Utility Easement 1.494 Po E2`.. 1..R.N.C.T. 20'44'07" E) N 28'45'35" E 403.01' 0 50 100 GRAPkiIC SCALE 1 =100 N 28'45'35" E 313.82 Point of Commencement f Point of Beginning 5 28'50'44" W 321.90' z 0) Zoning Tract. 2.98 Acres 129.930 SgFt v of Lots 1 and 2, Section 28 • Flour Bluff and Encinal Farm and Garden Tracts Vol, A, Pgs. 41-43, M,R.N.C.T. being the remainder of a 8.920 Acre Tract V Doc. No. 2002032580, 0.P.R.N.C.T. Owner. Oceanic Development, LTD., a Texas Limited Partnership I Z5 3 .L7,60•I9 S N V C 1 60' 8.L I —.1 35, Pq. 69 Ikl R.N.C.T. Exhibit B Sketch to Accompany Fieldnotes, for a 2.98 Acre Zoning Tract, of Lots 1 and 2, Section 28, Flour Bluff and Encinal Farm and Garden Tracts, a map of which is recorded in Volume A, Pages 41-43, of the Map Records of Nueces County, Texas, being a portion of the remainder of an 8.920 Acre Tract, described in a Warranty Deed with Vendors Lien, from Oshman Investments, Ltd., a Texas limited partnership, to Oceanic Development, Ltd., o Texas limited partnership, as recorded in Document Number 2002032580, of the Official Public Records of Nueces County, Texas. S 28'50144" W 390.73' Lot 4-0, Block A Joslin Tract Vol. 35 Pg 69, N,R,N,C,T, Doc. No. 2014006540, O.P.R.N.C.T. Owner Butler Rental Property, LLC, a Texas limited liability company 15' Utility Easement Vol. 67, Pg. 765 M.R.N.0 T LEGEND: O 5/8 Inch Iron Rod stomped 'URBAN ENGR CCTX" Found • 5/8 Inch Iron Rod stomped "Frontier Surveying" Found • 5/8 Inch Iron Rod Fcund • TXDOT Monument Found (Type 1) (broken) O TXDOT Monument Found (Type 11) DATE: 11 28/2016 SCALE: 1 =100' JOB NO.: 42724.B605 SHEET: 1 OF 2 DRAWN BY: CDS u rbansurveyl Ourbanen g.com 02016 by Urban Engineering Ili 1WE MI NR 11R 1ll3 1811 Na 1518481 MS SOWITIVIox MMUE OMR 1x 15104 RCM 3111.115431411 w55AfMENaa1I URBAN ENGINEERING Exhibit B PLANNING COMMISSION FINAL REPORT Case No.: 0117-07 Infor No. 16ZN1009 Planning Commission Hearing Date: January 25, 2017 Applicant & Legal Description Applicant/Representative: Carmax Auto Superstores, Inc. c/o Centerpoint Owner: Oceanic Development, Inc. Location: 7306 and 7242 South Padre Island Drive (State Highway 358) Legal Description: A 2.98 acre tract of land out of a portion of Flour Bluff and Encinal Farm and Garden Tracts, Section 28, Lots 1 and 2, located on the north side of South Padre Island Drive (State Highway 358) between Rodd Field Road and Lexington Road. Zoning Request From: "RM -1" Multi -family 1 District To: "CG -2" General Commercial District Area: 2.98 acres Purpose of Request: To rezone a portion of a parcel that currently has split zoning to be entirely CG -2 and include it with existing CG -2 parcels for the sale of pre -owned vehicles. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site "RM -1" Multifamily 1 District "CG -2" General Commercial District Vacant Commercial North "RM -1" Multifamily 1 District Medium Density Residential High Density Residential South Highway Highway Highway East Commercial Vacant Commercial Commercial West "RM -1" Multifamily 1 District Medium Density Residential High Density Residential ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Southeast Area Development Plan (ADP) and is planned for commercial uses. The proposed rezoning to the "CG -2" General Commercial District is consistent with the adopted Plan CC Future Land Use map. Map No.: 040034 Zoning Violations: None Staff Report Page 2 Transportation Transportation and Circulation: The subject property has approximately 330 feet of street frontage along South Padre Island Drive (Highway 358), which is an "F1" Freeway/Expressway. The maximum average daily trips for an "Fl" is 60,000 to 200,000. Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume South Padre Island DriveFreeway/Expressway (Highway 358) "F1" 400' ROW varies paved 275' ROW 250' paved 8'989 Staff Summary: Requested Zoning: The applicant is requesting a change of zoning from the "RM -1" Multi -family 1 District to "CG -2" General Commercial District for pre -owned vehicle sales. Development Plan: The applicant proposes to rezone the subject lot to the "CG -2" General Commercial District. The lots combined are 2.98 acres. The purpose of the rezoning is to develop a sales building, presentation area, and service building for pre -owned vehicle sales with approximately 35 employees. Existing Land Uses & Zoning: The north and west properties are zoned "RM -1" Multi -family 1 District with medium density residential uses. East of the property is zoned "CG -2" General Commercial with commercial and vacant uses. South of the property is South Padre Island Drive (Highway 358). AICUZ: The subject property is not located in one of the Navy's Air Installation Compatibility Use Zones (AICUZ). Plat Status: The subject property is not platted. The applicant has submitted a request for replat to combine lots Plan CC & Area Development Plan Consistency: The subject property is located within the boundaries of the Southeast ADP. The proposed rezoning to the "CG -2" Commercial District is consistent with Plan CC and the Future Land Use Map which identifies the area as Commercial. Additionally, the following are pertinent elements of Plan CC and the Southeast ADP that should be considered: Staff Report Page 3 • Corpus Christi is able to attract and retain firms because of its competitive assets and supportive business environment. (Plan CC, Goal 2, page 36) • Encourage the development of a high-quality workforce across a wide range of occupations and skill levels that meets the current and emerging needs of local businesses and makes a workforce a positive factor for business prospects. (Plan CC, Goal 2, Strategy 3, page 36.) • Commercial uses and neighborhood commercial uses are the most suitable uses for land designated by the Future Land Use Map as Commercial. (Southeast Area Development Plan, Table 1, page 10.) Department Comments: • Commercial development is existing along South Padre Island Drive (Highway 358) • The Future Land Use Map designates the property as commercial • The development would give access to currently landlocked lot • A majority of a portion of one of the parcels to be rezoned is currently zoned "CG -2" General Commercial • Per UDC, screening will be installed to protect Multi -family developments Planning Commission and Staff Recommendation (January 25, 2017): Approval of the change of zoning from the "RM -1" Multi -family 1 District to "CG -2" General Commercial District. Vote Results: For: 6 Opposed: 0 Absent: 3 a Notification Number of Notices Mailed — 6 within 200' notification area; 3 outside notification area As of January 20, 2017: In Favor In Opposition For 0.00% in opposition. — 0 (inside notification area); 0 (outside notification area) — 0 (inside notification area); 0 (outside notification area) Attachments: 1. Location Map (Existing Zoning & Notice Area) 2. Returned Opposition/Support (if any) K:\DevelopmentSvcs\SHARED\ZONING CASES \2017\0117-07 Oceanic Development, LTD (Carmax)\Council Documents\0117-07 CC Report Oceanic Development.docx CASE: 0117-07 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 "S<ol SUBJECT OR PROPERTY LOCATION MAP ,7 Ty Ca BOO 'os 0 ilh City of Corpus Christi Q�� Aerial Overview Aerial Map AGENDA MEMORANDUM Public Hearing and First Reading for the City Council Meeting of February 28, 2017 Second Reading for the City Council Meeting of March 21, 2017 DATE: February 7, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Public Hearing and First Reading for Property at 3115 South Padre Island Drive (SPID) (State Highway 358) CAPTION: Case No. 0117-06 Port City Pontiac -GMC, Inc.: A change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District. The property to be rezoned is described as Boulevard Acres Lots E2, G, and F2, located on the south side of South Padre Island Drive (State Highway 358) between Larcade Drive and Kostoryz Road. PURPOSE: The purpose of this item is to rezone the property to allow for a vehicle sales dealership with an ancillary vehicle repair facility including a paint and body shop. RECOMMENDATION: Planning Commission and Staff Recommendation (January 25, 2017): Denial of the change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District, in lieu thereof approval of the "CG -2" General Commercial District with a Special Permit (SP) with conditions. Vote Results For: 6 Against: 0 Absent: 3 Abstained: 0 BACKGROUND AND FINDINGS: As detailed in the attached report, the applicant is requesting a rezoning from the "CG - 2" General Commercial District to the "IL" Light Industrial District to allow a vehicle sales dealership with an ancillary vehicle repair facility including a paint and body shop. The proposed rezoning is inconsistent with the newly adopted Plan CC Comprehensive Plan. The property is appropriately located for commercial uses near the intersection of an expressway and a secondary arterial. The rezoning is incompatible with adjacent projects and character of the surrounding area. The proposed use with stipulated conditions is not anticipated to have a negative impact upon the surrounding neighborhood. The conditions applied by the special permit will regulate the following: Hours of operation, lighting, signage, screening, street access, and the loading and unloading of vehicles. ALTERNATIVES: 1. Deny the request. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The subject property is located within the boundaries of the Southside Development Plan. The proposed rezoning to the "IL" Light Industrial District is inconsistent with the adopted Future Land Use Map and the Southside Development Plan. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal and Planning Commission FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital • •Not applicable Fiscal Year: 2016- 2017 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: Ordinance Presentation - Aerial Map Planning Commission Final Report Ordinance amending the Unified Development Code ("UDC"), upon application by Port City Pontiac -GMC, Inc. ("Owner"), by changing the UDC Zoning Map in reference to 5.46 acre tract of land composed of three lots in Boulevard Acres Lots E2, G, and F2 from the "CG -2" General Commercial to the "CG-2/SP" General Commercial District with a Special Permit for all three lots; 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 Port City Pontiac -GMC, 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, January 25, 2017, during a meeting of the Planning Commission when the Planning Commission recommended approval of the change of zoning from the "CG -2" General Commercial District to the"CG-2" General Commercial District with a Special Permit for all three lots, and on Tuesday, February 28, 2017, during a meeting of the City Council, during which all interested persons were allowed to appear and be heard; 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 Port City Pontiac -GMC, Inc. ("Owner"), the Unified Development Code ("UDC") of the City of Corpus Christi, Texas ("City"), is amended by changing the zoning on a 5.46 a tract of land composed of three lots composed of: Boulevard Acres Lots E2, G, and F2, located on the south side of South Padre Island Drive (State Highway 358) between Larcade Drive and Kostoryz Road (the "Property"), from the"CG-2" General Commercial District to "CG-2/SP" General Commercial District with a Special Permit (Zoning Map No. 047038), as shown in Exhibit "A". Exhibit A, which is a map of the property, is attached to and incorporated in this ordinance by reference as if fully set out herein in its entirety. SECTION 2. The Special Permit granted in Section 1 of this ordinance is subject to the Owner following the conditions listed below: 1. Uses: The only uses authorized by this Special Permit other than uses permitted by right in the base zoning district is "Vehicle Service, Heavy" as defined by the Unified Development Code (UDC). All vehicle service and repairs must be done within an enclosed building and must follow all federal, state, local regulations. 2. Hours of Operation: The hours of operation shall be the same as the business hours of operation from 7:00 AM to 7:00 PM Monday through Saturday. 3. Lighting: All security lighting must be shielded and directed away from abutting residences and nearby streets. Cut-off shields are required for all lighting. No light projection is permitted beyond the property line near all public roadways and residential development. 4. Screening Fence: A six (6) foot standard screening fence shall be installed or existing fence must have slats installed and maintained to provide a visual barrier between the vehicular storage yard/building and the surrounding neighborhood. 5. Signage: No signs are to be installed on Johanna Street except for the purposes of emergency or directional information. 6. Loading/Unloading/Parking: No loading or unloading of vehicles is allowed on a public street and must occur on-site. No parking is allowed at any time on Johanna Street. 7. Access: No access to or from Johanna Street is allowed except for emergency access. 8. Dumpster Screening: Any dumpster located on the Property shall be effectively screened from view by means of a screening fence or landscaping. 9. Other Requirements: The Special Permit conditions listed herein do not preclude compliance with other applicable UDC, and Building and Fire Code Requirements. 10 Time Limit: In accordance with the UDC, this Special Permit shall be deemed to have expired within twelve (12) months of this ordinance, unless a complete building permit application has been submitted, and the Special Permit shall expire if the allowed use is discontinued for more than six consecutive months. 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. K:\DevelopmentSvcs\SHARED\ZONING CASES \2017\0117-06 Port City Pontiac -GMC, Inc % Autonation\Council Documents\Ordinance_0117- 06_Special Permit_Port City Pontiac -GMC, Inc..docx Page 2 of 3 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta Mayor City Secretary K:\DevelopmentSvcs\SHARED\ZONING CASES \2017\0117-06 Port City Pontiac -GMC, Inc % Autonation\Council Documents\Ordinance_0117- 06_Special Permit_Port City Pontiac -GMC, Inc..docx Page 3 of 3 G-2 CG -2 CG'2 CG -2 ykke y�'y S,o .OR �Sz-4 NO04) CG-2 RIS - i),(0100 40.1 •Y�w� J OR co V� O RM -1 /Fee- 1 t CG -2 N-1ED Date Creaied-1/30/2017 /cNiv' -11 S P / 6'011 ment of �velopmSy: I.t Sery s CASE: 0117-06 SUBJECT PROPERTY WITH ZONING Subject Property 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 LOCATION MAP City of Corpus Christi / PLANNING COMMISSION FINAL REPORT Case No. 0117-06 INFOR No. 17ZN1010 Planning Commission Hearing Date: January 25, 2017 Applicant & Legal Description Owner: Port City Pontiac -GMC, Inc. Applicant/Representative: MULTATECH Architects & Engineers Legal Description/Location: Boulevard Acres Lots E2, G, and F2, located on the south side of South Padre Island Drive (State Highway 358) between Larcade Drive and Kostoryz Road. Zoning Request From: "CG -2" General Commercial District To: "IL" Light Industrial District Area: 5.46 acres Purpose of Request: To allow for a vehicle sales dealership with an ancillary vehicle repair facility including a paint and body shop. Existing Zoning and Land Uses Existing Zoning District ExistU eland Future Land Use Site "CG -2" General Commercial Commercial Commercial North "CG -2" General Commercial Commercial Commercial South "RS -6" Single -Family and "RM -1" Multi -family Low Density Residential and Medium Density Residential Low Density Residential and Medium Density Residential East "CG-2/SP" General Commercial with a Special Permit Commercial Commercial West "CG -2" General Commercial Commercial Commercial ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Southside Area Development Plan and is planned for Commercial uses. The proposed rezoning to the "IL" Light Industrial is inconsistent with the adopted Future Land Use Map and the Southside Area Development Plan. Map No.: 047038 Zoning Violations: None Transportation Transportation and Circulation: The subject property has approximately 348 feet of street frontage along South Padre Island Drive (State Highway 358) which is designated as a F1 Freeway/Expressway and approximately 344 feet along Johanna Street which is designated as Local/Residential street. Staff Report Page 2 Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume South Padre Island Drive Freeway/Expressway 400' ROW aries paved 400' ROW 120' paved 12,421 ADT Johanna Street Local/Residential 50' ROW 28' paved 50' ROW 28' paved N/A Staff Summary: Requested Zoning: The applicant is requesting a rezoning from the "CG -2" General Commercial District to the "IL" Light Industrial District to allow for a vehicle sales dealership with an ancillary vehicle repair facility including a paint and body shop. Development Plan: The subject property is comprised of 5.46 acres and is proposed to be developed into a vehicle sales dealership. The property was acquired in 2007 for the purpose of reopening a vehicle sales dealership with an ancillary vehicle repair facility including a paint and body shop. Existing Land Uses & Zoning: The subject property is zoned "CG -2" General Commercial. The property has previously been a vehicle sales establishment with a vehicle repair facility for several makes and models of vehicles for at least 30 years. To the north is South Padre Island Drive (SH 358) and a vehicle sales dealership. To the east is a self -storage commercial business. To the west is a commercial development. To the south is Johanna Street and a multi -family apartment complex along with single- family homes. AICUZ: The subject property is not located in one of the Navy's Air Installation Compatibility Use Zones (AICUZ). Plat Status: Currently, the subject property is comprised of three platted lots. The applicant has submitted a request for replat to combine all lots. The proposed replat would not require a public notice. PIanCC & Area Development Plan Consistency: The subject property is located within the boundaries of the Southside Area Development Plan (ADP). The proposed rezoning to the "IL" Light Industrial District is inconsistent with the adopted Southside ADP. The proposed rezoning is also inconsistent with the following policies of the Comprehensive Plan: • The design of new developments promotes a broader sense of neighborhood and community rather than creating isolated subdivisions or apartment complexes developments with a lack of interconnection. Encourage appropriate transitions between commercial and residential developments and between high and low-density residential developments. (Housing and Neighborhoods Policy Statement 9). Staff Report Page 3 • Corpus Christi has well-designed neighborhoods and built environments. Promote interconnected neighborhoods with appropriate transitions between lower -intensity and higher -intensity land uses. (Future Land Use, Zoning, and Urban Design Policy Statement 3). • Study fair and equitable ways to promote better protection when two uses of differing intensity abut each other. The City will propose ordinance changes that will help assure a sufficient buffer of open space and/or land use, etc. when two or more differing intensities of land use abut. Such methods may include, but are not limited to, larger zoning setbacks, landscaping and/or screening. (Policy Statement B.5). Department Comments: • The proposed rezoning is inconsistent with the Comprehensive Plan and Southside Area Development Plan. • The existing building is a non -conforming structure as it crosses lot lines. However, the replat will correct the non -conforming issue and combine all three lots together. • The proposed rezoning is incompatible with the present zoning and conforming uses of nearby properties and to the character of the surrounding area. The potential rezoning would have a negative impact upon the surrounding neighborhood as it would allow all uses allowed by right in the "IL" District. • The subject property is suitable for the uses proposed by this rezoning, as the property was a former vehicle sales dealership with an ancillary auto repair facility. • Based on available information, the former vehicle sales dealership of thirty years was not a nuisance and did not cause a negative impact to the surrounding land uses. • The addition of the paint and body shop to the vehicle repair facility would not have an adverse impact as it will always remain a secondary and ancillary use to the vehicle sales dealership. • The rezoning to the "IL" District for the purposes of an ancillary auto repair shop with paint and body capabilities would be better suited to be granted by Special Permit (SP). • An SP would provide the use requested by the applicant while protecting the integrity of surrounding uses including the multi -family and single-family uses. However, certain conditions will need to be satisfied to protect those same uses. • All uses will be subject to the City's noise ordinance to prevent a nuisance from occurring. • The former vehicle sales dealership operated an ancillary vehicle repair shop including uses defined as "Vehicle Service, Heavy." However, the previous dealership did not operate any paint and body repair uses. • The Unified Development Code (UDC) defines vehicle services as: Vehicle Service, Limited: Minor repair or replacement of parts, tires, tubes, or batteries, diagnostic services; minor motor services such as grease, oil, spark plug, or filter changing; tune-ups; emergency road services; replacement of starters, alternators, hoses, belts, and points; brake or muffler repair, wheel alignment, automobile washing, automobile upholstery, window -tinting, state inspections and associated minor repairs; routine servicing of air-conditioning systems, or other Staff Report Page 4 similar minor repair services. Minor repairs do not include uses listed under "vehicle service, heavy." Vehicle Service, Heavy: General repair or overhaul of engines, air-conditioning systems, transmissions, or radiators for motor vehicles; Repair of bodies, frames, or fenders, painting, undercoating, or rust -proofing; repair of heavy load vehicles such as, tractor trailers, commercial dump trucks, or transit vehicles; customizing; vehicle steam cleaning; and other similar uses. Major repairs do not include uses listed under "vehicle service, limited." Planning Commission and Staff Recommendation (January 25, 2017): Denial of the change of zoning from the "CG -2" General Commercial District to the "IL" Light Industrial District, in lieu thereof approval of the "CG -2" General Commercial District with a Special Permit (SP) with the following conditions. 1. Uses: The only uses authorized by this Special Permit other than uses permitted by right in the base zoning district is "Vehicle Service, Heavy" as defined by the Unified Development Code (UDC). All vehicle service and repairs must be done within an enclosed building and must follow all federal, state, local regulations. 2. Hours of Operation: The hours of operation shall be the same as the business hours of operation from 7:00 AM to 7:00 PM Monday through Saturday. 3. Lighting: All security lighting must be shielded and directed away from abutting residences and nearby streets. Cut-off shields are required for all lighting. No light projection is permitted beyond the property line near all public roadways and residential development. 4. Screening Fence: A six (6) foot standard screening fence shall be installed or existing fence must have slats installed and maintained to provide a visual barrier between the vehicular storage yard/building and the surrounding neighborhood. 5. Signage: No signs are to be installed on Johanna Street except for the purposes of emergency or directional information. 6. Loading/Unloading/Parking: No loading or unloading of vehicles is allowed on a public street and must occur on-site. No parking is allowed at any time on Johanna Street. 7. Access: No access to or from Johanna Street is allowed except for emergency access. 8. Dumpster Screening: Any dumpster located on the Property shall be effectively screened from view by means of a screening fence or landscaping. 9. Other Requirements: The Special Permit conditions listed herein do not preclude compliance with other applicable UDC, and Building and Fire Code Requirements. Staff Report Page 5 10.Time Limit: In accordance with the UDC, this Special Permit shall be deemed to have expired within twelve (12) months of this ordinance, unless a complete building permit application has been submitted, and the Special Permit shall expire if the allowed use is discontinued for more than six consecutive months. Vote Results: For: 6 Opposed: 0 Absent: 3 Public Notification Number of Notices Mailed — 9 within 200 -foot notification area 5 outside notification area As of January 20, 2017: In Favor — 0 inside notification area — 0 outside notification area In Opposition — 0 inside notification area — 0 outside notification area Totaling 0.00% of the land within the 200 -foot notification area in opposition. Attachments: 1. Location Map (Existing Zoning & Notice Area) 2. Public Comments Received (if any) K:\DevelopmentSvcs\SHARED\ZONING CASES \2017\0117-06 Port City Pontiac -GMC, Inc % Autonation\PC Documents\Staff Report_0117-06_ Port City Pontiac -GMC, Inc..docx G-2 CG -2 CG'2 CG -2 ykke y�'y S,o .OR �Sz-4 NO04) CG-2 RIS - i),(0100 40.1 •Y�w� J OR co V� O RM -1 /Fee- 1 t CG -2 N-1ED Date Creaied-1/30/2017 /cNiv' -11 S P / 6'011 ment of �velopmSy: I.t Sery s CASE: 0117-06 SUBJECT PROPERTY WITH ZONING Subject Property 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 LOCATION MAP City of Corpus Christi / Aerial Overview N A Subject Property SUBJECT PROPERTY ', 1 :121).,,r. AGENDA MEMORANDUM Public Hearing and First Reading for the City Council Meeting of February 28, 2017 Second Reading for the City Council Meeting of March 21, 2017 DATE: February 10, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, CFM, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Urban Transportation Plan Amendment — Realigning a Planned C1 Collector Street System Involving Norchester Drive, Zenith Drive, Evans Road and Acushnet Drive CAPTION: Ordinance amending the Urban Transportation Plan map of Mobility CC, a transportation element of the Comprehensive Plan of the City of Corpus Christi, by realigning a proposed C1 Minor Residential Collector street system proposed south of Saratoga Boulevard from intersecting at Norchester Drive to intersecting at Zenith Drive and connecting with Evans Road to the south and Acushnet Drive to the east; amending related elements of the Comprehensive Plan of the City; providing for severance; and providing for publication. PURPOSE: The purpose of this item is to change the City's Urban Transportation Plan map by realigning two planned streets to accommodate a proposed development in the area southwest of the Saratoga Boulevard/Weber Road intersection. BACKGROUND AND FINDINGS: The City's Urban Transportation Plan (UTP) Map proposes a north -south C1 Collector connecting Evans Road to Saratoga Boulevard and connecting to Acushnet Drive, an east/west C1 Collector. When aligned with Norchester Drive, this planned C1 Collector is split between Cabaniss Field (government property) and private property before jogging to the east to tie into Acushnet Drive. Each property owner is responsible to build their half of the master planned street. A developer submitted a preliminary plat for a 28.5 -acre tract of land that is currently zoned for commercial and light industrial uses. Preliminary plats are required to comply with City master plans. The preliminary plat does not conform to the City's UTP map. The preliminary plat shows the proposed extensions of existing streets (Zenith Drive, Acushnet Drive, and Evans Road), but it does not show the extension of the planned C1 Collector, Norchester Drive, as designated on the UTP map. All of the existing streets contained within the plat boundary have a 60 -foot right-of-way. The developer's proposal not to build the C1 Collector (aligned with Norchester Drive) is based on challenges in obtaining right-of-way from the adjacent property owner, who is the federal government (Department of the Navy). The City cannot require the federal government to dedicate right-of-way. Another challenge presented is the Grant of Easement signed in 1985 which granted a drainage easement, on government property to the City, for a period of 50 years. The federal government (acting through the Department of the Navy), granted an easement to the City of Corpus Christi for the "...construction, installation, operation, maintenance, repair, and replacement of a drainage ditch..." This agreement states that upon termination, the City "...at its expense shall remove, to the extent requested by the Government, improvements installed ..." The developer requests the deletion of the current UTP -designated C1 Collector that borders private property and federal property and aligns with Norchester Drive on the opposite side of Saratoga Blvd. Instead, the developer proposes to extend Zenith Drive, of which approximately 380 feet is already constructed to the C1 Collector street design standards, south to Evans Road and east to the proposed Acushnet Drive. The extension of Zenith Drive would become the western terminus of Acushnet Drive. The proposed amendment maintains the intent of the UTP map by providing connectivity south of Saratoga Blvd and east to Acushnet Drive. This alignment also allows for a future three-legged "T" signalized intersection at the intersection with Saratoga Boulevard, if a traffic signal warrant analysis indicates requirements were met. ALTERNATIVES: Staff considered maintaining the proposed C1 collector alignment between private property and federal property. City staff would recommend the removal of the current jog in the proposed alignment, as shown on the UTP Map, and propose a straight alignment that provides for a 90 -degree intersection at Acushnet Drive. As part of Option B, the private developer would be required to dedicate 30' of right-of-way for future construction of the master planned street. Under this scenario, however, street construction would not occur until the City is able to obtain right-of-way from the federal government. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: The proposed amendment conforms to City policy. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Street Operations (Traffic Engineering), Planning, and Development Services FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital • •Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: Not Applicable RECOMMENDATION: Staff, Transportation Advisory Commission, and Planning Commission recommend approval of the UTP map amendment as presented. LIST OF SUPPORTING DOCUMENTS: Ordinance Presentation Ordinance amending the Urban Transportation Plan map of Mobility CC, a transportation element of the Comprehensive Plan of the City of Corpus Christi, by realigning a proposed C1 Minor Residential Collector street system proposed south of Saratoga Boulevard from intersecting at Norchester Drive to intersecting at Zenith Drive and connecting with Evans Road to the south and Acushnet Drive to the east; amending related elements of the Comprehensive Plan of the City; providing for severance; and providing for publication. WHEREAS, the Transportation Advisory Commission and Planning Commission have forwarded to the City Council its recommendation concerning the amendments to the Corpus Christi Urban Transportation Plan, an element of the Comprehensive Plan of the City of Corpus Christi, Texas; WHEREAS, Planning Commission held a public hearing on Wednesday, January 11, 2017, and on Wednesday, February 22, 2017, regarding amendments to the Corpus Christi Urban Transportation Plan map, during which all interested persons were allowed to appear and be heard; WHEREAS, City Council held a public hearing on Tuesday, February 28, 2017, regarding amendments to the Corpus Christi Urban Transportation Plan map, during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that these amendments would best serve public health, necessity, and convenience, and the general welfare of the City of Corpus Christi, and its citizens; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Corpus Christi Urban Transportation Plan map, an element of the Comprehensive Plan of the City of Corpus Christi, Texas (the "Comprehensive Plan"), is amended by deleting the proposed 01 Minor Residential Collector, with 60 feet of right- of-way and two travel lanes, having an alignment running in the north/south direction between Saratoga Boulevard and Evans Road, and adding a 01 Minor Residential Collector designation to Zenith Drive and extending it from Saratoga Boulevard to Evans Road, and establishing Zenith Drive/Evans Road as the western terminus of the proposed Acushnet Drive, also a proposed 01 Minor Residential Collector with 60 feet of right-of-way and two travel lanes, as shown on Exhibit "A," which is attached to this ordinance and incorporated into this ordinance by reference as if fully set out in its entirety. SECTION 2. To the extent the amendments made by this ordinance represent a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the amendments made by this ordinance. SECTION 3. The Comprehensive Plan, as amended from time to time and except as changed by this ordinance, remains in full force and effect. SECTION 4. Any ordinance or part of any ordinance in conflict with this ordinance is expressly repealed by this ordinance. SECTION 5. The City Council intends that every section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance be given full force and effect for its purpose. Therefore, if any section, paragraph, clause, phrase, word, or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance. SECTION 6. Publication shall be made in the City's official publication as required by the City's Charter. Page 2 of 4 The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta Mayor City Secretary Page 3 of 4 Exhibit A 4anaportatlon Plan TYPE. a1AN5 A1, EX •m,P2.IX V. PR ..A3 IX asa P3, PR _C1. Q i 1C1.FA C2, IX C3,IX .C3, R1 108. EX NF1, IX Fl. PR FM/ RR Rfx, EX RL PR i'I Et - RAX ER ▪ RAX ER —H RE SRW, EY gP L UTP Amendment Proposed C1 Proposed and Segment Removal C1 Designation Extension UTP Amendment ( Area (South of Saratoga Blvd) Page 4of4 Urban Transportation Plan Amendment: Norchester/Acushnet Drive Extensions City Council Presentation February 28, 2017 Subject Property N Current Plan Scope • Proposed C1 Collectors (60' ROW) > Norchester Drive (From Saratoga Blvd to Evans Rd.) > Acushnet Dr. (From approx. Jefferson St. to the west) • Proposed Development (Universal Plaza) > West Property Line Abuts Cabaniss Naval Field 1250 ft. > Developer Requests UTP Amendment Proposed UTP Map Amendment • Realigns a proposed C1 Collector from Norchester Dr. to Zenith Dr. • Permits Future Signalization (T -intersection) on Saratoga Blvd. • No Requirement to Request Additional ROW from Federal Government • Maintains Connections to Saratoga Blvd. and Acushnet Dr. ➢ Extension of Zenith Dr. (South to Evans Rd.) ➢ Extension of Acushnet Dr. east of Zenith Dr./Evans Rd. Proposed UTP Map Amendment Set] gmerirke /••• r i is I y I i ♦ X ri'� l♦Proposed C1 Segment Addition/ Tra A,IX� Plan SS TYPE —CE ES 5aggrocqe \93 111110,01 ODE. Mt PP ME, PP 24 e n, Ro iso 500 Proposed UTP Map Amendment Current Plan Proposed Change Preliminary Plat SARATOGA BLVD 1 t. If III ACUSHNETDR r_ 1 8 Recommendations Staff, Transportation Advisory Commission (TAC), & Planning Commission Recommendations: > Delete the segment of the proposed C1 Collector along the west property line aligned with Norchester Dr. (Utilize Zenith Dr., 60' ROW) > Use the extension of Zenith Dr. as the western terminus ofAcushnet Dr. Discussion AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading Ordinance for the City Council Meeting of March 28, 2017 DATE: February 17, 2017 TO: Margie C. Rose, City Manager FROM: Daniel McGinn, AICP, CFM, Assistant Director, Planning and ESI DanielMc@cctexas.com (361) 826-7011 London Area Wastewater Master Plan and Storm Water Master Plan CAPTION: Ordinance adopting the London Area Wastewater Master Plan, an element of the Comprehensive Plan; adopting the London Area Storm Water Master Plan, an element of the Comprehensive Plan; amending related elements of the Comprehensive Plan; providing for severance; and providing for publication. PURPOSE: The purpose of this item is to recommend adoption of the London Area Wastewater and Storm Water Master Plans, encompassing 980 acres in the London area. A portion of this area is outside the City limits. BACKGROUND AND FINDINGS: Currently, the London Area is served by City water without access to the City's wastewater or storm water systems. The result has been a development pattern of large -lot residential developments of half -acre or greater size that utilize septic systems. Storm drainage for the developments has been addressed on a piecemeal basis without the benefit of an overall plan. The increased pace and densification of development in the London area are noticeable, with the expansion of the London School campus, a proposed Sports Park Project, TxDOT's improvements of Crosstown and Weber Road (CR 43), related commercial development, and multiple large -lot single-family projects. Adoption of these two master plans will allow the City to obtain right-of-way (ROW) and utility easements to expand each system through the platting process, and require future developments to design systems in a manner that creates an efficient City wastewater and storm water network necessary to serve the area. These two master plans are the first in a series of master plans to address areas south of Oso Creek. The London Area Wastewater and Storm Water Master Plans do not identify areas that will be annexed, address costs or reimbursement to developers for the construction of wastewater or storm water infrastructure, or set City policy related to growth. ALTERNATIVES: Denial of the proposed plans or plan. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: The proposed adoption of the London Area Wastewater and Storm Water Master Plans — South of Oso Creek conforms to City policy. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Utilities Department, Planning and ESI, Planning Commission (January 25, 2017) FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital 0 Not applicable Fiscal Year: 2016-2017 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. LIST OF SUPPORTING DOCUMENTS: Presentation Ordinance with Exhibits A and B ORDINANCE ADOPTING THE LONDON AREA WASTEWATER MASTER PLAN, AN ELEMENT OF THE COMPREHENSIVE PLAN; ADOPTING THE LONDON AREA STORM WATER MASTER PLAN, AN ELEMENT OF THE COMPREHENSIVE PLAN; AMENDING RELATED ELEMENTS OF THE COMPREHENSIVE PLAN; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the adoption of the London Area Master Plans, an element of the Comprehensive Plan of the City of Corpus Christi; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, January 25, 2017, during a meeting of the Planning Commission, and on Tuesday, March 21, 2017, 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 adoption of the London Area Master Plans would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the London Area Wastewater Master Plan (a part of the Comprehensive Plan of the City of Corpus Christi, Texas) is adopted by this ordinance as an integral part of the Comprehensive Plan to read as shown in Exhibit "A" attached to this ordinance and incorporated by reference. SECTION 2. That the London Area Storm Water Master Plan (a part of the Comprehensive Plan of the City of Corpus Christi, Texas) is adopted by this ordinance as an integral part of the Comprehensive Plan to read as shown in Exhibit "B" attached to this ordinance and incorporated by reference. SECTION 3. That to the extent that the amendments made by this Ordinance represent a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the amendments made by this Ordinance. SECTION 4. That the Comprehensive Plan of the City of Corpus Christi, Texas, as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remains in full force and effect. SECTION 5. That any ordinance or part of any ordinance in conflict with this ordinance is expressly repealed by this ordinance. SECTION 6. The City Council intends that every section, paragraph, subdivision, clause, phrase, word or provision hereof shall be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance. SECTION 7. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta City Secretary Mayor London Area Wastewater Plan - Proposed Legend Lift Station 1_3 City Limit Proposed Mains —Force Main -0— Gravity Main MILS Service Area Commercial Estate Residential Low Density Residential Medium Density Residential Parks Public/Semi-Public 1:10,455 Miles 0 0.050.1 °$9.2 0.3 0.4 LS1 15 in Gravity Main F20 43 1.Average Daily Wastewater Flow The service population and wastewater flow generation for the land use identified in this area are as followed: Aver. 1.2 Flow Lad lise Was. Weld R -ten Lew M3 100 1. 515.0 etsi.2 i l 3. 35 35.0 3.501325i.. 35 IW 350 30 30 900 112515 10 20 Public Sare-Public 2.Peaking Factor The peak flow for all land uses shall be generated using the Babbitt Formula which is commonly used in the industry. The formula is as follows: PF = 5 / (population/1000) " 0.2, (Minimum = 2 Maximum =4) 3.Infiltration and Inflow In this master plan, infiltration and inflow shall be calculated using 400 gallons per day per acre. 4.Peak Design Flow All design of lift stations, force mains and collection systems shall use the peak flow as their basis which will include the peaking factor and infiltration and inflow. 5.Force Mains Force mains shall be designed to have a velocity between 2 feet per second and 5 feet per second to ensure that they are adequate to move solids. 15 in Gravity Main London Area Storm Water Plan - Proposed 1 Design Requirements 1. Minimum Level of Protection Major Systems (>500 acres conmbusng area): Major Underground Storm Sewers (>500 acres contributing area): • 25 -Near (HGLat or below top of curb and manhole rims) • 100 -Year (Measures shall be taken to ensure that street ponding remains belowhabtable living space) Major Channels (>500 acres contnbufing area): • 25 -Year (Design objemve is 3 feet of freeboard with a 1-footninimum,when necessary) • 100 -Year (Water surface elevation belowtop of banks) Major Channel Crossings (CuIerts): • 50 -Year Design Storm • 100 -Year (Measu res shall be taken to ensure that street ponding remains below habitable Irving space) Major Channel Crossings (Bridges). • 50 -Year At least 1 foot of freeboard below bottom of low chord • 100 -Year Water surface elevation below bottom of low chord and measures shall be taken to ensure that street ponding remains below habitable Irving space) 2. Hydrology Hydrologic analyses shall be based upon ultimate land development according to the latest Future Land Use Plan adopted by Development Services. In this master plan the follow ng Design Rainfall Depth (inches). shall be used for the USArrry Carps of Engineers Hydrologic Modeling System (HEC -HMS) hydrologic analysis in the design of channels. culverts and bridges. Rainfall Depth (inches) CorpusChiai, Teras 25,507 717 3.24 485 47 5.07 24 18477 5 70 tt 04 10 43 1210 3. Hydraulics In this master plan the hydraulic design of channels, culverts and bridges shall be performed using the US AmyC rps of Engineers HEGRASsofhvare program. Legend Q Proposed Drainage Basins —••— Proposed Channels Ditch Major Ditch Underground Major Ditch IM Collector Ditch =Concrete Lined Ditch ® Minor Ditch Pilot Ditch ,/' Natural Ditch Land Use Commercial Estate Residential Low Density Residential Medium Density Residential Parks FM Public/Semi-Public Li City Limit I I NAT0. rq 0 030 Bw Feet Oso Creek Ac. 767 i D esign Requirements ROW=110'100' B OTTOM WIDTH -B' 025-1022 CFS Ac. 1216 Ac` 1518 • �.•_• REACH• Design Requirements ROW -110'105' BOTTOM WIDTH -12' @5-1207 CFS / (_ t Ac. 595 London Area Utility Master Plans Wastewater and Storm Water City Council March 21, 2017 Study Area These utility master plans address a portion of the London Area to allow for current projects to move forward. Existing Conditions • Large lot development (1/2 acre or larger) • Expansion of the London School campus • Proposed Sports Park Project, related commercial development, and higher density single family. • TxDOT Improvements: Crosstown and Weber Road (CR 43) • Planned Development (Future Land Use) • London ADP (1987) = 105 people Utility Master Plans • Identifies technical requirements. • Allows city to obtain necessary ROW or easements to expand system through the platting process. • Requires future development to design public systems in an efficient manner that will benefit others. Does not: • Identify areas that will be annexed. • Address costs or reimbursement to developers. • Set policy related to growth. Proposed Wastewater Master Plan London Area Wastewater Plan - Proposed Legend • LIN Station =City Moat Proposed IVIains Force Main Graaty Main 1:211.5 Service area 'Commercial Estate Residential Low Density Residential Medium Density Residential Parks Public/Seim-Public a Is in Granny Main 15 in Granny Main 4555545.5x 55155554e Hen. ed 57:',SFE;:t'n E7.:ailF5r5i171;4t575;7554'Ire'XI',751'1;Z:n711 Otra7g:;:45 5,544555z :474= 5tX5VeV5'41471:5'1=47525'5'4:417.''' 1:10 455 0 0 ,..7.75 0 7579 + 980 Acres + Force main, gravity line, and lift station + Est. Customers (4 Houses/AC) = 3,920 Households + Est. Total Cost =$8,747,000 + Est. Cost Per Household =$2,231 Proposed Storm Water Master Plan London Area Storm Water Plan - Proposed Legend oseAInageBasIns -- mC" .ok� ▪ g, CI▪ . QIP" mt. Oso Creek A A ass !Ac. '995 ACS ITLB Two Channels @ 6,375 and 5,815 linear ft. Est. Total Cost =$5,915,000 + Est. Cost Per Household =$1,510 Recommendations • Planning Commission recommended approval on January 25, 2017 • Utilities and Planning & ESI Departments recommend approval Potential Future Growth in ETJ Developer Trust Fund System - Purpose • To encourage orderly development, per utility master plans • Equitably spread the cost of public infrastructure • Reimburse developers for constructing infrastructure where City infrastructure is deficient or non-existent Developer Trust Fund System -How it works • Fee paid by developers at the time of plat recordation and is based on the number of acres (not by intensity of use or number of units) • Fees are placed in four accounts, two for water and two for wastewater • Infrastructure must be on the master plan to be eligible for reimbursement • Unified Development Code (UDC), section 8.5, defines what items are eligible for reimbursement. Developer Trust Fund System - Issues • Does not account for project impact on system (intensity of use) • Does not pay for increases to capacity within the system (lines) or treatment plants (CIP) • System has had issues in the past remaining solvent since the inclusion of wastewater lift stations at 100% eligible (2003- no increase to fee collected) Trust Funds - Current Balance • Water Arterial Transmission & Grid Main • Water Distribution Main • Sanitary Sewer Trunk System • Sanitary Sewer Collection Line = $1.4 million = $1.1 million = $1.8 million = $1.2 million *Ord. 030369, adopted 12/16/2014, permits Council to transfer monies between trust funds. Current Projects (Utility Plan Area) • To receive wastewater service outside of the city limits a project must request to be annexed or enter into a non - annexation agreement per section 8.5.2.F of the UDC. • If a voluntary annexation agreement was considered for the subject projects, full access to the trust funds would be permitted. Future Development- (Potential needs for liftstations- Estimated Costs) • Average Liftstation Cost: ($1.5 -3 million) • Northwest Area (1-2) = $1.5+ million • Westside Area - NPID and West Point Road (1) = $1.5 million = $8.5+ million • London Area (1) • Southside (No liftstations needed) Next Steps • Further Evaluation of Trust Fund System: • Comprehensive evaluation to determine revenue trends and identify potential projects that will impact the system. • Annexation Policy and other Infrastructure Financing Tools Workshop AGENDA MEMORANDUM Future Item for the City Council Meeting of February 28, 2017 Action Item for the City Council Meeting of March 21, 2017 DATE: February 22, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, Interim Director, Development Service Department JulioD@cctexas.com 826-3276 Resolution authorizing the City Manager or designee to execute a disannexation agreement CAPTION: Resolution authorizing the City Manager or designee to execute a disannexation agreement with Chapman Ranch Wind I, LLC, a Delaware limited liability company, for annexed parts of Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41 PURPOSE: The purpose of disannexation agreement is to restrict wind turbines within the disannexed area. BACKGROUND AND FINDINGS: On October 14, 2014, the City annexed Laureles Farm Tracts adjacent to the city limits located in Nueces County along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41. There are no existing commercial wind farms in the area. The City has negotiated a disannexation agreement with Chapman Ranch Wind I, LLC to restrict commercial wind farms in the proposed disannexed area. ALTERNATIVES: Not enter into the dis annexation agreement. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Yes EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: RECOMMENDATION: Approval of the Resolution authorizing the City Manager or designee to execute a disannexation agreement with Chapman Ranch Wind I, LLC, LIST OF SUPPORTING DOCUMENTS: Resolution with Disannexation Agreement attached Resolution authorizing the City Manager or designee to execute a disannexation agreement with Chapman Ranch Wind I, LLC, a Delaware limited liability company, for annexed parts of Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager or designee is authorized to execute the attached Disannexation Agreement with Chapman Ranch Wind I, LLC, a Delaware limited liability company, for annexed parts of Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41 and further is further authorized to execute documents related thereto in a form approved by the City Attorney. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta Mayor City Secretary Corpus Christi, Texas of The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn Disannexation Agreement This Agreement made effective as of February 22, 2017 (the "Effective Date") is by and between the City of Corpus Christi (the "City") and Chapman Ranch Wind 1, LLC, a Delaware limited liability company ("Chapman"). WHEREAS, on October 14, 2014, the City annexed parts of Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41; WHEREAS, this is not an agreement pursuant to Texas Local Government Code §212.172 and does not constitute a permit pursuant to Texas Local Government Code Chapter 245. WHEREAS, Chapman is the developer of the Chapman Wind Project, which is located in Nueces County, Texas, in the vicinity of the area depicted as "Restricted Area" in Exhibit A and areas adjacent thereto; and WHEREAS, Chapman owns lease rights to develop, construct and operate wind turbines in the area depicted as the "Restricted Area" in Exhibit A. NOW, THEREFORE, the City and Chapman agree as follows: 1. Term. The term of this Agreement shall be 25 years from the Effective Date (the "Term"). Thereafter, the Agreement shall automatically extend for successive additional 1 -year terms unless either party provides the other written notice of non -extension at least 30 days prior to expiration of the then current term. Notwithstanding, this Agreement may be terminated by either party on at least 180 days written notice to the other party, with or without cause, provided that the Agreement cannot be terminated within one year after the Effective Date. Termination prior to the end of the Term other than as prohibited in the foregoing sentence shall not entitle either party to the damages specified in Section 5(C) herein. 2. Land Uses in Restricted Area. During the Term of this Agreement, Chapman will not construct, develop or operate any wind turbines in excess of 100 feet in height in the Restricted Area. Further, during the Term of this Agreement, Chapman will not sell, grant or otherwise transfer its rights to construct, develop or operate any wind turbines in excess of 100 feet in height in the Restricted Area. In addition, during the Term of this Agreement, Chapman will not encourage its subsidiaries or affiliates to construct, develop or operate any wind turbines in excess of 100 feet in height in the Restricted Area. 3. Successors and Assigns. Chapman's agreement to not sell, grant or otherwise transfer any of its rights to construct, develop or operate any wind turbines in the Restricted Area in excess of 100 feet in height to any other entity shall not limit a sale or change in control of Chapman. In case of such sale or change in control of Chapman, a successor party will continue to be bound to the tends of this Agreement, and shall promptly notify the City of such change in control. 4. Annexation. Within the first six (6) months following the Effective Date, the City agrees to disannex the parts of the Restricted Area that are in the City limits of Corpus Christi. City shall not re -annex or annex territory forming part or all of the Restricted Area unless: 1 a. Wind turbines exceeding a height of 100 feet are proposed, permitted, or constructed on portions of the restricted area, in which case, the City may annex the tracts of land containing and adjacent to the tracts upon which said wind turbines are proposed and which are necessary to provide utilities to said tracts or provide for contiguity for purposes of annexation. b. A landowner or landowners in the Restricted Area requests annexation, in which case the City may annex the tracts of land containing and adjacent to the tracts upon which said annexation is requested and which are necessary to provide utilities to said tracts or provide for contiguity for purposes of annexation. c. A landowner or landowners in the Restricted Area develops, subdivides or files a preliminary or final plat for subdivision of his property, in which case, the City may annex the tracts of land developed, subdivided, or subjected to preliminary or final plat and such further tracts of land which are necessary to provide utilities to the subdivided, developed, or platted tracts or provide for contiguity for purposes of annexation. In the case of annexation pursuant to the foregoing subsections (b) and (c), the City shall provide prior notice to Chapman no later than five (5) business days after receipt of a landowner request or application. 5. General Terms and Conditions: A. Entire Agreement. This Agreement contains the entire agreement of the Parties, and there are no other agreements or promises, oral or written between the Parties regarding the subject matter of this Agreement. This Agreement can be amended only by written agreement signed by the Parties. This Agreement supersedes all other agreements between the Parties concerning the subject matter hereof. B. Notice. Any notice to the Chapman or the City concerning the matters to which this Agreement relates may be given in writing by registered or certified mail addressed to Chapman or the City at the appropriate respective addresses set forth below. Chapman must notify the City of any change of address in writing. Notices by a party to the other party hereto, shall be mailed or delivered as follows: City: City of Corpus Christi Attn: City Manager. 1201 Leopard Street, 5th Floor Corpus Christi TX 78401 Phone: 361-826-3220 Fax: 361-826-3845 With Copy to: City of Corpus Christi Attn: City Attorney 1201 Leopard Street, 5th Floor Corpus Christi TX 78401 Phone: 361-826-3360 Fax: 361-826-3239 2 Chapman: Chapman Ranch Wind I, L.L.C. c/o Enbridge (U.S.) Inc. 1100 Louisiana Suite 3300 Houston, TX 77002 Attn: Corporate Secretary Facsimile: (713) 821-2229 With Copy to: Enbridge Inc. 200, 425 —1st Street S.W. Calgary, AB T2P 3L8 Attention: Vice President, Green Power, Transmission & Emerging Technology Attention: Vice President, Corporate Law & Deputy General Counsel Facsimile: (403) 231-7380 Email: legalnotices@enbridge.com C. Damages, Severability, Waiver. Violation of any portion of this Agreement shall, after affording the defaulting party reasonable notice and opportunity to cure, exempt the other party from performance of its duties pursuant hereto and shall not entitle either party to damages in law or equity except that violation by the City shall entitle Chapman to obtain abatement of any annexation proceedings for a period of up to 365 days and violation by Chapman shall entitle the City to immediately initiate annexation of the Restricted Area. If any provision of this Agreement is 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, in lieu of each illegal, invalid, or unenforceable provision, that a provision be added to this Agreement which is legal, valid, and enforceable and is as similar in terms to the illegal, invalid, or enforceable provision as is possible. Each of the rights and obligations of the Parties hereto are separate covenants. Any failure by a party to insist upon strict performance by the other party of any provision of this Agreement will not be deemed a waiver of such provision or of any other provision, and such party may at any time thereafter insist upon strict performance of any and all of the provisions of this Agreement. D. Representations and Warranties. Chapman hereby represents and warrants to City as of the Effective Date as follows: Chapman has acquired lease rights for properties located in the "Restricted Area" of Exhibit A (the "Leases") which permit Chapman the right to locate above ground wind power facilities on each such property for the duration of each respective Lease. The Leases have an initial operation term exceeding 25 years; and ii. Chapman Ranch Wind I, LLC has acquired these lease rights as a result of (a) direct lease agreements with the landholders to certain lands in the Restricted Area; or (b) Memorandum of Assignment and Assumption Agreements with Element Markets, LLC dated as June 1, 2015, but effective May 27, 2010 as recorded in the Nueces County, TX records on July 31, 2015 as Document # 2015029442. E. Applicable Law and Venue. The laws of the State of Texas govern the interpretation, performance, enforcement and validity of this Agreement. Sole venue will be in a court of appropriate jurisdiction in Nueces County, Texas. 3 F. Exhibits, Headings. All schedules and exhibits referred to in or attached to this Agreement are incorporated into and made a part of this Agreement for all purposes. The section headings contained in this Agreement are for convenience only and do not enlarge or limit the scope or meaning of the sections. G. Relationship of Parties. In perfoiriiing this Agreement, both the City and Chapman 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. H. Survival of Terms. All representations, warranties, covenants and agreements of the Parties, as well as any rights and benefits of the Parties pertaining to the transaction contemplated hereby, will survive the original execution date of this agreement. I. No Third -Party Beneficiary. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to it and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any third person to any party hereto or give any third person any right of subrogation or action over or against any party to this Agreement. EXECU'I"ED by the PARTIES, both of which hereby represent that the signatures to this AGREEMENT, below, are of those persons with the capacity and authority to legally bind the PARTIES. City of Corpus Christi Chapman Ranh Wind I, LLC Margie C. Rose City Manager Date ATTEST: Rebecca Huerta City Secretary APPROVED AS TO LEGAL FORM: Buck Brice (Date) Assistant City Attorney for City Attorney State of Texas County of Nueces Name: Chris Kaitson Ti e: Vice President �vtA.kw, ZZ, 2t 1 Date 4 This instrument was acknowledged before me on this day of , 2017 by Margie Rose, as City Manager of the City of Corpus Christi, a Texas municipal corporation, on behalf of said corporation. State of a County of E-(5 § This inst ,ri s ent h�as acknowledged before ZS �1�I , as 0 Notary Public nk- on this �Z! day of ___ a Delaware limited liability company, on behal ltidtcile R. Williams q�?�C�� Commission Expires Fp�'<c 04-04-2017 f of the campany. of Chapman Ran 2017 by Wind 1, LLC, Notary Public 5 8 Robstown ISD I 3 a r • u • CR22-s CR 28A West Oso ISO KNESIK 20 w CR R2200B RA Bishop Cons. ISD a ir CR IS 0 CR 14E 1 -CR 14 'CR 14A CR 12 • - CR 10 N..., . . s.. ls VVYATT, RD CR 26 CRil6 CR 26 414•4. No N 7kar, <4, /4.4s, 00, ‘.2 er *Qv, cr o a- ,Ot .tv '904,4t. *41 0, , 6,_1? °If ilt4 44 ° 0' 4- <04 2.4. c) o "41p u<o, 4.0 II 0/i 4'0 '9'DR cr .•*.Y -'., 47.1)/01. e g. . 4,„ ko .., g .„. 0h'4, 1 ! Corpus Christi ISD 4' 49 6., a. 4 41' . c 0 0 v• • a z z o 4- 0 4. rii ee -6, # ,9 0 4reG4 4 `61. ix •s- .1/4 .. ot,.., -..., ,.., < A? 47 41i o --'940 S 4- 4:, 4 Q" O ,. 9eoito - . CO4t. . ... re • T 4 . , 4.'e ce 080 pKivv. 02.04, 44 ,f CR ‘0 ,c4s, 0 < —Mr ipt;r0 O RR k0,9247 'O I% 4?/, rt u • 17 it Au ' ko -lb 4,0 04, ko o I .90 a 'ea 4 o4, 9 O C? Cr re 41 41- u •*- 0 ,9,. p a or ri• 94- 0 2 T • • • ' R 2 -P 2 g, ,te r ° 2 et ,ty 9 _ -..-. 1r.' 1 044 49 SOLITH,punwelt;0 CR 20A CR 8 WINN RD Nueces County Flour -Bluff ISD Laguna Madre Exhibit A Kleberg County City of Corpus Christi Legend I:=1 Chapman Ranch Wnd Farm Boundary E=3 Restricted Area Corpus Chnstl Extrartortitorial J don r/ovalopinontAgraemontAroa (1.6 Sr:IMMO Corpuo Chnsti Gay Londe S ol District. 0 00 2 AGENDA MEMORANDUM First Reading for the City Council Meeting of February 28, 2017 Second Reading for the City Council Meeting of March 21, 2017 DATE: February 22, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, Interim Director, Development Service Department JulioD@cctexas.com 826-3276 Southside FM 2444 Disannexation CAPTION: Ordinance disannexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the previously proposed Apex wind farm from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. PURPOSE: The purpose of disannexation is to remove the areas previously annexed in 2014 pursuant to the Southside FM 2444 Annexation. BACKGROUND AND FINDINGS: On October 14, 2014, the City annexed Laureles Farm Tracts adjacent to the city limits located in Nueces County along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41. Texas Local Government Code §43-142 gives Home Rule Municipalities the authority to disannex pursuant to their City Charter. The City of Corpus Christi allows for disannexation. The proposed disannexation area is an area of approximately 10,463 acres. There are no existing commercial wind farms in the area. The City has negotiated a disannexation agreement with Chapman Ranch Wind I, LLC, restrict wind turbines in the disannexed area. ALTERNATIVES: Not disannex area. OTHER CONSIDERATIONS: Texas Local Government Code §43.148: • "(a) If an area is disannexed, the municipality disannexing the area shall refund to the landowners of the area the amount of money collected by the municipality in property taxes and fees from those landowners during the period that the area was a part of the municipality less the amount of money that the municipality spent for the direct benefit of the area during that period. • (b) A municipality shall proportionately refund the amount under Subsection (a) to the landowners according to a method to be developed by the municipality that identifies each landowner's approximate pro rata payment of the taxes and fees being refunded. • (c) A municipality required to refund money under this section shall refund the money to current landowners in the area not later than the 180th day after the date the area is disannexed. Money that is not refunded within the period prescribed by this subsection accrues interest at the rate of: o (1) six percent each year after the 180th day and until the 210th day after the date the area is disannexed; and o (2) one percent each month after the 210th day after the date the area is disannexed." CONFORMITY TO CITY POLICY: City Charter authorizes disannexation. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Not applicable FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 50,104.14 50,104.14 BALANCE 50,104.14 50,104.14 Fund(s): Comments: RECOMMENDATION: Approval of the Ordinance as presented. LIST OF SUPPORTING DOCUMENTS: Ordinance Location Map Ordinance disannexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the previously proposed Apex wind farm from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. WHEREAS, the City Council finds the area described in Exhibit A is not necessary or suitable for city purposes and that the best interest of the general public of the City of Corpus Christi is to disannex the area described in Exhibit A; WHEREAS, Texas Local Government Code §43.142 provides: "A home -rule municipality may disannex an area in the municipality according to rules as may be provided by the charter of the municipality and not inconsistent with the procedural rules prescribed by this chapter." WHEREAS, Corpus Christi City Charter Article 1, Section 1 provides: "The city shall have the power by ordinance to fix the boundary limits of the city and to provide for the alteration and extension of the boundary limits." WHEREAS, City Council determines that said City Charter Section provides rules for disannexation pursuant to Texas Local Government Code §43.142 WHEREAS, the area to be disannexed is pursuant to Texas Local Government Code §43.142 and not for failure to provide services as the process is set forth in Texas Local Government Code §43.141. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the tract of land annexed by Ordinance #030307 is hereby disannexed and discontinued as a part of the City of Corpus Christi so that the same will no longer be a part of the City of Corpus Christi for any purpose whatsoever, said tract of land being more particularly described in Exhibit A attached to and incorporated as part of this ordinance. SECTION 2. The boundaries of the City of Corpus Christi, Texas are amended to exclude only that property annexed by Ordinance #030307, comprising an approximately 10,463 acre tract of land out of Laureles Farm Tracts, recorded in Volume 3 Page 15 and Volume 4 Page 36 of the Map Records, Nueces County, Texas excluding a portion of the property described and attached herein in accordance with City Council approved Development Agreements, more particularly described in Exhibit A. SECTION 3. That the official map and boundaries of the City and its extraterritorial jurisdiction, previously adopted and amended, are amended as described in this ordinance. SECTION 4. That the City Manager or his designee is directed and authorized to perform or cause to be performed all acts necessary to correct the official map of the City and its extraterritorial jurisdiction. SECTION 5. The City of Corpus Christi hereby relinquishes any and all right, jurisdiction or control over the above-described tract of land, but retains its extraterritorial jurisdiction. SECTION 6. That the above described territory hereby disannexed shall no longer be part of the City of Corpus Christi, Texas, and the property so removed hereby shall no longer bear its pro rata part of the taxes levied by the City of Corpus Christi, Texas SECTION 7. That this ordinance shall and does amend every prior ordinance in conflict herewith, but as to all other ordinances or sections of ordinances not in direct conflict, this ordinance shall be, and the same is hereby made cumulative. SECTION 8. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction that 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 unless said holding has the effect of diminishing the revenue payable to the City under any agreement entered into under this ordinance. SECTION 9. Publication will be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 10. This ordinance is effective upon passage. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta City Secretary Mayor Disannexation Ordinance Exhibit A SOUTHSIDE FM 2444 AREA PROFILE Southside FM 2444 Area Information Z444 Area Total Land Area in Square Miles: Total Water Area in Square Miles: Total 2014 Population: Total 2014 Housing Units: 2012 Median Age 2012 Median Household Income JVIJII is 'sat: ruin Source: US Census/American Fact Finder and City of Corpus Christi Existing Uses Southside FM 2444 Area Agricultural / Vacant Residential Industrial Public Semi Public Right -of -Way Total Location Map Corpus Christi 16.34 150.58 0.0 353.46 44 320,231 16 129,254 35.6 34.4 $67,721 $47,029 Acres Percent 10,433.69 97.84% 20.77 0.20% 3.81 0.04% 4.73 0.05% 196.47 1.88% 10,463.00 100.00% Southside FM 2444 Area Development Services Department October 14, 2014 Page 2 of 12 Legal Department EXHIBIT A METES AND BOUNDS SOUTHSIDE FM 2444 Disannexation Area An approximately 10,463 acre tract of land out of Laureles Farm Tracts, recorded in Volume 3 Page 15 and Volume 4 Page 36 of the Map Records, Nueces County, Texas and more particularly described as follows save and except a portion of the property described and attached herein in accordance with City Council approved Development Agreements per Local Government Code 43.035: BEGINNING at the northeast corner of said 10,463 acre tract, more or less, a point on the west right-of-way line of existing County Road 41, located 500 feet north of the centerline of F.M. 2444, for the north corner of the tract herein described; THENCE west and 500 feet north of and parallel to the centerline of FM 2444 for a distance of approximately 3 miles, to a point on the west right-of-way line of County Road 47; THENCE south along the west right-of-way line of County Road 47 and 20 feet west of the east boundary of Section 27 Laureles Farm Tracts to a point on the north right-of-way line of FM 2444; THENCE to the west along the south boundary of the north half of Sections 27 and 26 Laureles Farm Tracts also being the north right-of-way of FM 2444 to the northwest corner of the southeast quarter of Section 26 Laureles Farm Tracts; THENCE to the south, with the west boundary of the southeast quarter of Section 26 Laureles Farm Tracts and parallel with County Road 49 a distance of 0.5 miles to the northeast corner of the northwest quarter of Section 37 Laureles Farm Tracts; THENCE in a westerly direction along the north boundary of Sections 37, 38 and 39 Laureles Farm Tracts to a point located approximately 2000 feet past the northeast corner of Section 39 Laureles Farm Tracts, to the westerly boundary of the Corpus Christi Extraterritorial Jurisdiction formed by Annexation Ordinance 022267 on July 18, 1985 and by annexation ordinance 020039 on October 27, 1985; whose radius point is the southwest corner of a 308.99 Acre Tract out of Shares 1, 2, 3, 4, and 10, Section D of the Laureles Farm Tracts and by Annexation Ordinance 020039 on October 27, 1985 whose radius point is the southwest corner of a 298.056 Acre Tract out of the South 1/2 of Section 31 and the North % of Section 32 of the Laureles Farm Tracts; THENCE in a southeasterly direction following the Corpus Christi Extraterritorial Jurisdiction formed by Annexation Ordinance 022267 on July 18, 1985 whose radius point is the southwest corner of a 308.99 Acre Tract out of Shares 1, 2, 3, 4, and 10, Section D of the Laureles Farm Tracts and by Annexation Ordinance 020039 on October 27, 1985 whose radius point is the southwest corner of a 298.056 Acre Tract out of the South 1/2 of Section 31 and the North 1/2 of Section 32 of the Laureles Farm Tracts to the east right-of-way line of County Road 43, crossing Sections 39, 38, 48, 72, 83, 84, 107, 106, 121 and 122 of Laureles Farm Tracts to a point on the east right of way of County Road 43; THENCE in a northerly direction following the east right-of-way line of County Road 43 to a point being 20 feet east of the northwest comer of the south half of Section 104 Laureles Farm Tracts; Southside FM 2444 Area Page 3 of 12 ueveiopmentServicesDepartment October 14, 2014 Legal Department THENCE in an easterly direction along the north boundary of the south half of Section 104 Laureles Farm Tracts to a point on the west boundary of Section 103 Laureles Farm Tracts; THENCE in a northerly direction along the west boundary of Section 103 and 88 Laureles Farm Tracts to the northwest corner of the south half of Section 88 Laureles Farm Tracts; THENCE in a westerly direction along the south boundary of the north half of Section 87 Laureles Farm Tracts to the east right-of-way line of County Road 43; THENCE north along the east right-of-way line of County Road 43 to a point 20 feet east of the southwest corner of north half of Section 68 Laureles Farm Tracts; THENCE east along the north boundary of the south half of Section 68 Laureles Farm Tracts to the southeast comer of the north half of Section 68 Laureles Farm Tracts; THENCE in a northerly direction along the west boundary of Section 67 Laureles Farm Tracts to the northwest corner of Section 67 Laureles Farm Tracts; THENCE to the west along the north boundary of Section 68 Laureles Farm Tracts to the east right- of-way line of County Road 43; THENCE in a northerly direction along the east right-of-way line of Country Road 43 to the point on the north right-of-way line of County Road 14A; THENCE to the west along the north right-of-way line of County Road 14A extended along the south boundary of the north half of Sections 51, 50 and 49 Laureles Farm Tracts to a point on the east right-of-way line of County Road 49; THENCE to the north along the east right-of-way line of County Road 49 being 20 feet east of the west boundary of Sections 49 and 36 Laureles Farm Tracts to a point on the south right-of-way line on County Road 18 being 20 feet south of the northwest comer of the south half of Section 36 Laureles Farm Tracts; THENCE to the east along the south boundary of County Road 18 being 20 feet south of the south boundary of the north half of Section 36 Laureles Farm Tracts to a point on the east right-of-way line of County Road 47 and 20 feet west of the southwest corner of the north half of Section 35; THENCE to the north along the east right-of-way line of County Road 47 and 20 feet east thereof the west boundary of Sections 35 and 28 Laureles Farm Tracts to a point 500 feet south of the centerline of FM 2444; THENCE to the east 500 feet south of and parallel to the centerline of FM 2444 to a point on the west right-of-way line of County Road 41 and the existing Corpus Christi city limits (Ordinance 022267, July 18, 1995) and the east boundary of Section 30 Laureles Farm Tracts to a point; THENCE to the north along the west right-of-way line of County Road 41 and the existing Corpus Christi city limits (Ordinance 022267, July 18, 1995) and the east boundary of Section 30 Laureles Farm Tracts 1000 feet, to the west right-of-way line of County Road 41 and the Corpus Christi city limits (Ordinance 022267, July 18, 1995) to the POINT OF BEGINNING. the Southside FM 2444 Area Page 4 of 12 Development Services Department October 14, 2014 Legal Department Southside FM 2444 Disannexation Area Map the Southside FM 2444 Area Page Development Services Department September 24, 21114 Legal Department Property Owner Signed and City Council Adopted Development Agreements Per Local Govemment Code 43.035 the Southside FM 2444 Area Page 6 of 12 Development Services Department September 24, 2014 Legal Department Attachment A: Thomas Edward Braman, Nueces County Appraisal District Tax Id. #: 4250-0030- 1001 A 39.98 acre tract, more or less, out of a 478.36 acre tract of land out of the South one-half (S 1/2) of Section 30 and the North one-half (W ½) of Section 33, Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to - wit: BEGINNING at the northwest corner of this tract of land, being on the west boundary line of the South one-half (S. 1/2) of Section 30, Laureles Farm Tracts and the centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 43, having a right-of-way width of 40.0 feet; THENCE East, along the centerline of Farm -to -Market 2444 to the western boundary line of a 157 acre tract out of the South one-half (S 14) of Section 30 and the North one-half (N ½) of Section 33, Laureles Farm Tracts; THENCE South along the eastern boundary of the Northeast, South one-half (S of Section 30 and the North one-half (N %) of Section 33, Laureles Farm Tracts, 500.0 feet to the southeast corner of this tract; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Northeast South one-half (S 1/2) of Section 30 and the North one- half (N Y2) of Section 33, Laureles Farm Tracts; THENCE North along west side of said tract of land, 500.0 feet, also being in the center of County Road 43, to the POINT OF BEGINNING containing 44.88 acres of land less 4.90 acres of right-of- way for a total of 39.98 acres. mo0,00. mt MMI4A4 +CM m444mmt, a,* .0! I - Or. MV.4$140113i VM rt: r* &QV: 4aOAcNI the Southside FM 2444 Area Development Services Department September 24, 2014 Page 7 of 12 Legal Department Attachment B: James F. Nemec Family Real Property, Nueces County Appraisal District Tax Id. #: 4250-0028-020 A 27.064 acre portion, more or less, of a 160 acre tract of land situated in Nueces County Texas, out of that tract of land originally granted to Ramon de Ynojosa, called the "Rincon de Corpus Christi," Abstract No. 411, and being the Northwest One-fourth (NW %) of Section Twenty -Eight (28), of the Laureles Farm Tracts, bounded as follows, to -wit: BEGINNING at the southwest corner of this tract of land, being on the west boundary line of the Northwest One-fourth (NW '1/4) of Section Twenty -Eight (28), of the Laureles Farm Tracts and on the current right-of-way centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 47, having a right-of-way width of 40.0 feet; THENCE North along west side of said tract of land, 500.0 feet to the northwest corner, also being in the center of the current right-of-way line of County Road 47; THENCE East, being 500.0 feet north of and parallel to the centerline of Farm -to -Market 2444, to the west boundary tine of the Northeast, One-fourth (NE 1/4) of Section Twenty -Eight (28) of the Laureles Farm Tracts; THENCE South along the western boundary of the Northeast, One-fourth (NE %) of Section Twenty - Eight (28) of the Laureles Farm Tracts, 500.0 feet to the southeast comer of this tract, also being in the center of Farm -to -Market 2444; THENCE West, along the current right-of-way centerline of Farm -to -Market 2444, to the POINT OF BEGINNING containing 30.30 acres of land less 3.236 acres of righ-of-way for a total of 27.064 acres. ‘maTor=1=4,Z*e.e.s se. e 1 3.2:34mm, . <„, • *5 woo ^ ) •Ir. 1, e ne.en5+0...te OwlfespINA.AsOcherelAr* AmemMeertIva• the Southside FM 2444 Area Development Services Department September 24, 2014 Page 8 of 12 Legal Department Attachment C: Turnbull Land and Cattle, Ltd., Cuervo Ranch Holdings, Ltd., Staples Investment Partnership, and MPJ Assets, LLC., Nueces County Appraisal District Tax id. #: 425000280401 and 425000280500 owned in undivided interest A 24.79 acre tract, more or less, out of a 290.80 acre portion of the Southeast one-quarter (SE 14 ) of Section 28, Laureles Farm Tracts and 4.78 Acre, more or less Tract of land out of the Southeast one- quarter (SE % ) of Section 28, Laureles Farm Tracts , a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to - BEGINNING at the Northwest Corner of this tract of land, being the northwest corner of the Southeast one-quarter (SE % ) of Section 28, Laureles Farm Tracts and the centerline on Farm - to -Market 2444, having a right-of-way width of 100.0 feet; THENCE East, along the centerline of Farm -to -Market 2444 to the northeast comer of the Southeast one-quarter (SE Y4 ) of Section 28, Laureles Farrn Tracts, also being the intersection with State Highway 286, having a right-of-way width of 100.00 feet; Thence South along the centerline of State Highway 286, 500.00 feet to the southeast comer of this tract; THENCE West, being 500 the west boundary line of Tracts; THENCE North, along the 28, Laureles Farm Tracts 3.33 acres of right-of-way .0 feet south and parallel to the centerline of Farm -to -Market 2444 to the Southeast one-quarter (SE ) of Section 28, Laureles Farm west boundary line of the Southeast one-quarter (SE % ) of Section to the POINT OF BEGINNING, containing 28.12 acres of land less for a total of 24.79 acres. e I 04449,:i.1 W..44 .4P*0 I 4o,o'r';'Wgra&tix *ttreamttisitle10002444*Va* Development Services Department September 24, 2014 j 44 ," Page 9 of 12 Legal Department Attachment D: Catherine Marie Sims Property 425000260001 425000270000 425000270200 425000360100 425000360300 425000370000 425000260000 425000270005 LAURELES FARM TRACTS LAURELES FARM TRACTS LAURELES FARM TRACTS LAURELES FARM TRACTS LAURELES FARM TRACTS LAURELES FARM TRACTS LAURELES FARM TRACTS LAURELES FARM TRACTS 159 ACS OUT OF SE/4 SEC 26 309 ACS OUT OF S/2 SEC 27 10 ACS OUT OF S/2 SEC 27 80 ACS OUT OF W/2 OF NW/4 SEC 36 240 ACS OUT OF NE/4 & E/2 OF NW/4 SEC 36 NE/4 SEC 37, 160 ACS 1 AC OUT OF SE/4 SECTION 26 1 AC OUT OF S/2 SECTION 27 11.1117414Ct6 Mehra 11.114,.." 1.291041; 1.14A11.10.0.4MOPOVVIS' r.4.0.111V.V4Sd£364,1116+11.4C ti ara cream* moat roe rep masa rac "'N I "e"' VONORE* MANI 'MCI. CM1116311111511VIRIF thiMELEI PAM 1144C11 /AT OW Of MS=11' roV0,1{P.PCM adifliyX400.1rtelitaffli.taKS, 5r, DeVelOpIllelt Area r the Southside FM 2444 Area Development Services Department September 24, 2014 Page 10 of 12 Legal Department Attachment E: Nueces County Appraisal District Tax Id. #: 425000280305, J.W. Owens A 22.21 acre tract, more or less, out of 120.0 acres, more or less, out of the South one- half (S 172) of Section 28 of the Laureles Farm Tracts and a portion of 10 acres, more or less, out of the South one-half (S %) of Section 28 of the Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the northwest corner of this tract of land, being on the west boundary line of the South one-half (S 1/4) of Section 28 of the Laureles Farm Tracts and the centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 47, having a right-of-way width of 40.0 feet; THENCE East, along the centerline of Farm -to -Market 2444, to the northeast corner of the South one-half (S1/2) of Section 28 of the Laureles Farm Tracts; THENCE South along the eastern boundary of the South one-half (S of Section 28 of the Laureles Farm Tracts, 500.0 feet; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary fine of the South one-half (S1/2) of Section 28 of the Laureles Farm Tracts, also being in the center of County Road 47; THENCE North along the centerline of County Road 47, 500.0 feet to the POINT OF BEGINNING containing 25.25 acres of land less 3.04 acres of right-of-way for a total of 22.21 acres. 339M9CJA39183 329•4 1/9913333213337733G78113;393i7d7 Of HM48E373 397 1.7479921.3133.7 a • the Southside EM 2444 Area Page 11 of 12 Development Services Department September 24,2014 Legal Department Attachment F: Nueces County Appraisal District Tax Id. #: 4250-0028-0000, R.L. Owens A 6.20 acre tract, more or less, out of a 36.298 acre tract, out of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the northeast comer of this tract of land, also being the northwest comer of the southeast corner of Section 28 of the Laureles Farm Tracts and the centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet; THENCE South along east side of said tract of land, 500.0 feet to the southeast comer of the Middle Portion of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts; THENCE North along the western boundary of the Middle Portion of the South one-half (S '12) of Section 28 of the Laureles Farm Tracts, 500.0 feet to the northwest corner of this tract, also being in the center of Farm -to -Market 2444; THENCE East, along the centerline of Farm -to -Market 2444, to the POINT OF BEGINNING containing 6.89 acres of land less 0.69 acres of right-of-way for a total of 6.20 acres. R -O -W.: .69 Acres OWENS VP te‘OitELES RAM TRACTS VOOACS OUT OP SO c I. tAUREESS FARM TRACTS 152.62ACSOU the Southside FM 2444 Area Development Services Department September 24, 2014 Page 12 of 12 Legal Department z K fa/1 CR -20 CR -26 FM -4 CR -2 Bishop Cons. ISD 71 -■r , /,,, ' d; iiii rH/HHHHH/'//H/ r r r H/��� r Ar /1 r 1/Z, /Aw 0 As./ *.:4 v ��y � �pQn A N �a r $4IqJ y. ,44,„ • 15 qq hISO 04 A 4" � �v • Corpus Christi ISD e aa (4 A'�� ow gyp© gip //.\ Corp Christi Bay Oso Bay 0R 7 BRA1RIE RD C 8 CR -20A SRO Qe aS0`P h S4 London/ISD% v G- 14A 1 r / r r , r r i r A /7 ?, / /A i 'r"7777,: AV Nueces County F ---C- R 6 V �f1fff1fffff ////// f} Extra Territo»ai-Jurisdyotio (5 Miles) Flour Bluff ISD /A Laguna Madre ` 61.2.28 1// .\ CR -26A \ \ Robstown ISDF'�'aTe West -Oso ISD \ fro '0 ;6% 0 K CR C 20 KNESIK CR -26 FM 665 2 K re—CR 18 -CR-14E -CR 1.4C- -C R —14A— LCR-1-2— CR-10 Kleberg County Legend City of Corpus Chris Proposed Annexation Area ti oSchool DlstncG I Carpus Christi City Limits Chapman Ranch Wind Farm Boundary elCorpus Chnstl Extra Territorial Junsdl tlon I Proposed Dlsannexation Area L. 0.5 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading Ordinance for the City Council Meeting of March 28, 2017 DATE: TO: March 10, 2017 Margie C. Rose, City Manager FROM: Steven Viera, Director of Human Resources stevev@cctexas.com 361-826-3445 Ordinance Amending Code of Ordinances, Chapter 39, Personnel Article III Employment Compensation and Classification System Section 39-303(a) and (e) CAPTION: Ordinance amending the Corpus Christi Code of Ordinances Chapter 39 Personnel Article III Employee Compensation and Classification System Section 39-303 (a) and (e) by eliminating Pay Plan 400 to allow moving the Police Commander and Assistant Chief positions to the Pay Plan 200 repealing conflicting ordinances and rules; providing for effective date and providing for severence. PURPOSE: Update the Corpus Christi Code of Ordinances to allow for progression steps and address the issue of salary compression within the Police Commander and Assistant Chief positions. Currently the Police Commander and Police Assistant Chief positions are in the Pay Plan 400 which is stagnant and does not include progression steps. BACKGROUND AND FINDINGS: The issue of maintaining a differential between the highest paid Police Captain and the position of Police Commander and Police Assistant Chief has been a neglected issue for quite a few years. Currently the Police Commander and Police Assistant Chief positions are in the Pay Plan 400 which is stagnant and does not include progression steps. Pay Plan 400 only includes Police Commander and Police Assistant Chief positions and no others. The same and similar positions to Police Commander and Police Assistant Chief are those in Fire (Battalion Chief, Assistant Chief and Deputy Chief) which are in a play plan that includes progressive step increases. The recommendation is to eliminate Pay Plan 400 in order to move both positions (Police Commander and Police Assistant Chief) into the 200 plan which will provide for the progressive 2.5% pay for performance steps that do not exist for these positions currently. This change will mirror the Fire Department as they are already in the pay step plan and will provide parity between the two departments. The employees will be placed into the closest step to their current pay which follows the Human Resources policy for civilian personnel. Human Resources determines and assigns City positions to the specific pay plan and grade. With the revised ordinance the remaining annual cost to implement the plan will be $4,897 salary and retirement to be absorbed in the Police General Fund budget. Going forward, new promotions will be covered by the 200 plan pay steps. ALTERNATIVES: Keep the compensation and classification system as is. OTHER CONSIDERATIONS: Parity and equity. CONFORMITY TO CITY POLICY: This is consistent with the City's Human Resources Mission to support City departments in meeting their workforce requirements. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Human Resources FINANCIAL IMPACT: No Financial Impact X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $4,897 $9,793 BALANCE Fund(s): Comments: None RECOMMENDATION: Human Resources recommends the ordinance be passed. LIST OF SUPPORTING DOCUMENTS: Ordinance — Amending the Corpus Christi Code of Ordinances Chapter 39 Personnel Article III Employee Compensation and Classification System Section 39-303 (a) and (e) by Eliminating Pay Plan 400 to Move Police Commander and Police Assistant Chief Positions to Pay Plan 200; Repealing Conflicting Ordinances and Rules; Providing for Effective Date and Providing for Severance. ORDINANCE AMENDING THE CORPUS CHRISTI CODE OF ORDINANCES CHAPTER 39 PERSONNEL ARTICLE III EMPLOYEE COMPENSATION AND CLASSIFICAITON SYSTEM SECTION 39-303 (a) AND (e) BY ELIMINATING PAY PLAN 400 TO ALLOW MOVING POLICE COMMANDER AND POLICE ASSISTANT CHIEF POSITIONS TO PAY PLAN 200; REPEALING CONFLICTING ORDINANCES AND RULES; PROVIDING FOR EFFECTIVE DATE AND PROVIDING FOR SEVERANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Chapter 39, PERSONNEL, Article III, Employee Compensation and Classification System of the Code of Ordinances of the City of Corpus Christi, Texas is amended by amending Section 39-303 (a) and eliminating Section 39-303 (e) of the Corpus Christi Code of Ordinances which will now read as follows: "Sec. 39-303. Standard classifications, pay grades and ranges. (a) Classifications. The classifications of employees of the city, as set forth in this section, will include: Pay Plan 100 Non -Exempt (FLSA Overtime Eligible); Pay Plan 200 Exempt (FLSA Overtime Ineligible); and Pay Plan 300 Executives (FLSA Overtime Ineligible." "Sec. 39-303. Standard classifications, pay grades and ranges. (e) Pay Plan 400. Pay Plan '100 will includc Policc Command Staff, - - .. . 0 bctwcen thc highcst paid policc captain and thc policc commandcr and a fivc per ccnt (5%) diffcrcntial bctwccn thc policc commandcr and assistant policc chicf. Title Grade St ea 1 Policc Commandcr '101 $98,09'1 Assistant Policc Chicf '102 $102,982 Page 1 When thcrc is not a fivc per ccnt (5%) diffcrcntial bctwccn the highcst paid police captain and police commander; policc per ccnt (5%) diffcrcntial bctwccn the highcst paid policc captain chicfs." SECTION 2. That all ordinances, rules or parts of ordinances or rules in conflict with this ordinance are hereby expressly repealed. SECTION 3. This ordinance is effective immediately. SECTION 4. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance be given full force and effect for its purpose. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Rudy Garza Ben Molina Paulette Guajardo Lucy Rubio Michael Hunter Greg Smith Joe McComb Carolyn Vaughn Page 2 That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Rudy Garza Ben Molina Paulette Guajardo Lucy Rubio Michael Hunter Greg Smith Joe McComb Carolyn Vaughn PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Mayor Page 3 AGENDA MEMORANDUM First Reading Ordinance (Tabled) for the City Council Meeting of February 14, 2017 First Reading Ordinance (Tabled) for the City Council Meeting of February 21, 2017 First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading Ordinance for the City Council Meeting of March 28, 2017 DATE: February 14, 2017 TO: Margie C. Rose, City Manager FROM: Stacie Talbert Anaya, Interim Director of Park Operations StacieT(c�cctexas.com (361) 826-3476 Kim Baker, Assistant Director of Financial Services — Purchasing Division KimB2@cctexas.com (361) 826-3169 Service Agreement to Manage and Operate the Al Kruse Tennis Center CAPTION: Ordinance authorizing the City Manager or designee to execute a service agreement with TOPS Tennis LLC, Dallas, Texas for Management and Operations Service for Al Kruse Tennis Center for a term of 36 months with up to two additional 12 -month extension option periods; the City will pay the Contractor $3,166.00 per month for an estimated annual total of $38,000.00, and the Contractor will pay the City 5% of all Pro Revenue and 50% of collected City Revenue in return for managing and operating the Al Kruse Tennis Center. PURPOSE: Staff is recommending a service agreement with TOPS Tennis LLC to manage and operate the Al Kruse Tennis Center in order to increase revenue for the Corpus Christi Park and Recreation Department. BACKGROUND AND FINDINGS: The Al Kruse Tennis Center is located at 502 King Street in Corpus Christi, Texas 78401. The Center had been under a contract and lease agreement with Tennis Pro Susan Shelby Torrance until she recently retired. At that time, Park and Recreation secured a temporary agreement with a local tennis instructor to continue partial operation of the Al Kruse Tennis Center until such time as a new solicitation could be processed and a new contract awarded. The request for proposals (RFP) was advertised issued October 7, 2016 and a pre - proposal conference was held October 14, 2016. Five proposals were received November 18, 2016; however, one was submitted late and was deemed nonresponsive and a second one was deemed non responsive as it failed to meet the RFP requirements. The remaining three responsive proposals moved on in the process and were evaluated by an evaluation team against the published criteria in the RFP. Minimum qualifications were evaluated under a pass fail system and the firms experience and understanding of the scope of work were evaluated on the published point system as outlined in the RFP. The firms were also interviewed and scored based on the same published criteria and a final score was developed for each firm. The final scores ranged from a low of 54 to a high of 76 and staff recommends awarding a service agreement to TOPS Tennis LLC for the full operation and management of the tennis center. ALTERNATIVES: No viable alternative exists 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: Park & Recreation FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $37,992.00 $91,814.00 $129,806.00 Encumbered / Expended Amount $12,351.00 $0.00 $12,351.00 This item $22,162.00 $91,814.00 $113,976.00 BALANCE $3,479.00 $0.00 $3,479.00 Fund: General Comments: The future years financial impact include 29 months of service, the first 7 months are budgeted in 2016-2017 Fiscal Year. RECOMMENDATION: Park & Recreation staff recommends the approval of the service agreement. LIST OF SUPPORTING DOCUMENTS: Ordinance Service Agreement Form 1295 Evaluation Matrix Informal Staff Report dated 1-12-17 Informal Staff Report dated 2-8-17 Ordinance authorizing the City Manager or designee to execute a service agreement with TOPS Tennis LLC, Dallas, Texas for Management and Operations Service for Al Kruse Tennis Center for a term of 36 months with up to two additional 12 -month extension option periods; the City will pay the Contractor $3,166.00 per month for an estimated annual total of $38,000.00, and the Contractor will pay the City 5% of all Pro Revenue and 50% of collected City Revenue in return for managing and operating the Al Kruse Tennis Center. Be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Manager or designee to execute a concession agreement with TOPS Tennis LLC, Dallas, Texas for Management and Operations Service for Al Kruse Tennis Center for a period of 36 months with up to two additional 12 -month extension option periods. SECTION 2. The City will pay the Contractor $3,166.00 per month for an estimated annual total of $38,000.00, and the Contractor will pay the City 5% of all Pro Revenue and 50% of collected City Revenue in return for managing and operating the Al Kruse Tennis Center. SECTION 3. The concession agreement term commences by the issuance of a notice to proceed to the Contractor. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED this the day of , 2017 ATTEST: Rebecca Huerta Mayor City Secretary SERVICE AGREEMENT NO. 935 AL KRUSE TENNIS CENTER MANAGEMENT THIS Al Kruse Tennis Center Management Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home -rule municipal corporation ("City") and TOPS Tennis LLC ("Contractor"), effective upon execution by the City Manager or the City Manager's designee ("City Manager"). WHEREAS, Contractor has bid to provide Al Kruse Tennis Center Management in response to Request for Bid/Proposal No. 172 ("RFB/RFP"), which RFB/RFP includes the required scope of work and all specifications and which RFB/RFP and the Contractor's bid or proposal response, as applicable, are incorporated by reference in this Agreement as Exhibits 1 and 2, respectively, as if each were fully set out here in its entirety. NOW, THEREFORE, City and Contractor agree as follows: 1. Scope. Contractor will provide Al Kruse Tennis Center Management ("Services") in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety, and in accordance with Exhibit 2. 2. Term. This Agreement is for 36 months, with performance commencing upon the date of issuance of a notice to proceed from the Contract Administrator or Purchasing Division. This Agreement includes an option to extend the term for up to two additional 12 -month periods ("Option Period"), provided, the parties do so prior to expiration of the original term or the then -current Option Period. The decision to exercise the option to extend the term of this Agreement is, at all times, within the sole discretion of the City and is conditioned upon the prior written agreement of the Contractor and the City Manager. 3. Compensation and Payment. The City will pay the Contractor $3,166.00 per calendar month for Services completed and accepted by the City within 30 days of receipt of an acceptable invoice. In the event the initial term does not begin at start of a calendar month, the initial monthly invoice shall be paid on pro rata basis. The Contractor will also receive 50% of City Revenue and 95% of the Pro Revenue as stated in the RFP as amended. The Contractor may receive a $500 quarterly productivity award as provided in the RFP as amended. Page 1 of 8 4. All pricing must be in accordance with the attached Bid/Pricing Schedule, as shown in Attachment B, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. 5. 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. The City's Contract Administrator for this Agreement is as follows: Becky Perrin, Assistant Director Parks & Recreation Department (361) 826-3498 BeckyP©cctexas.com 6. Insurance; Bonds. (A) Before performance can begin under this Agreement, the Contractor must deliver a certificate of insurance ("COI"), as proof of the required insurance coverages, to the City's Risk Manager and the Contract Administrator. Additionally, the COI must state that the City will be given at least 30 days' advance written notice of cancellation, material change in coverage, 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 10 days of the City Manager's written request. Insurance requirements are as stated in Attachment C, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. (B) In the event a payment bond, a performance bond, or both, are required of the Contractor to be provided to the City under this Agreement before performance can commence, the terms, conditions, and amounts required in the bonds and appropriate surety information are as included in the RFB/RFP or as may be added to Attachment C, and such content is incorporated here in this Agreement by reference as if each bond's terms, conditions, and amounts were fully set out here in its entirety. 7. Purchase Release Order. For multiple -release purchases of Services to be provided by the Contractor over a period of time, the City will exercise its right to specify time, place and quantity of Services to be delivered in the following manner: any City department or division may send to Contractor a purchase release order signed by an authorized agent of the department or division. The purchase release order must refer to this Agreement, and Page 2 of 8 Services will not be rendered until the Contractor receives the signed purchase release order. 8. Inspection and Acceptance. Any Services that are provided but not accepted by the City must be corrected or re -worked immediately at no charge to the City. If immediate correction or re -working at no charge cannot be made by the Contractor, a replacement service may be procured by the City on the open market and any costs incurred, including additional costs over the item's bid/proposal price, must be paid by the Contractor within 30 days of receipt of City's invoice. 9. Warranty. The Contractor warrants that all products supplied under this Agreement are new, quality items that are free from defects, fit for their intended purpose, and of good material and workmanship. The Contractor warrants that it has clear title to the products and that the products are free of liens or encumbrances. In addition, the products purchased under this Agreement shall be warranted by the Contractor or, if indicated in Attachment D by the manufacturer, for the period stated in Attachment D. Attachment D is attached to this Agreement and is incorporated by reference into this Agreement as if fully set out here in its entirety. 10. Quality/Quantity Adjustments. Any Service quantities indicated on the Bid/Pricing Schedule are estimates only and do not obligate the City to order or accept more than the City's actual requirements nor do the estimates restrict the City from ordering less than its actual needs during the term of the Agreement and including any Option Period. Substitutions and deviations from the City's product requirements or specifications are prohibited without the prior written approval of the Contract Administrator. 11. Non -Appropriation. The continuation of this Agreement after the close of any fiscal year of the City, which fiscal year ends on September 30th annually, is subject to appropriations and budget approval specifically covering this Agreement as an expenditure in said budget, and it is within the sole discretion of the City's City Council to determine whether or not to fund this Agreement. The City does not represent that this budget item will be adopted, as said determination is within the City Council's sole discretion when adopting each budget. 12. Independent Contractor. Contractor will perform the work required by this Agreement as an independent contractor and will furnish such Services in its own manner and method, and under no circumstances or conditions will any agent, servant or employee of the Contractor be considered an employee of the City. Page 3 of 8 13. Subcontractors. 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 Contract Administrator if the subcontractors were not named at the time of bid or proposal, as applicable. 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, including the necessity of providing a COI in advance to the City, are applicable to all subcontractors and their employees to the same extent as if the Contractor and its employees had performed the work. 14. Amendments. This Agreement may be amended or modified only by written change order signed by both parties. Change orders may be used to modify quantities as deemed necessary by the City. 15. Waiver. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 16. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes and all other related taxes. Upon request, the City Manager shall be provided proof of payment of these taxes within 15 days of such request. 17. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand -delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows: IF TO CITY: City of Corpus Christi Attn: Becky Perrin Assistant Director, Parks & Recreation 1201 Leopard St., 2nd Floor, Corpus Christi, TX 78401 Fax: (361) 826-3864 IF TO CONTRACTOR: TOPS TENNIS LLC Attn: Chris Foltz Executive Director 3702 Frankford Rd. #4304 Fax None Page 4 of 8 18. CONTRACTOR AGREES TO 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 WHATSOEVER ON ACCOUNT OF PERSONAL INJURIES (INCLUDING DEATH AND WORKERS' COMPENSATION CLAIMS), PROPERTY LOSS OR DAMAGE, OR ANY OTHER KIND OF INJURY, LOSS, OR 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 AGREEEMENT 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 CONTRIBUTORY NEGLIGENCE OF INDEMNITEES, BUT NOT IF BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH THE FAULT OF ANY OTHER PERSON. 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 SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING FROM ANY SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 19. Termination. (A) The City Manager may terminate this Agreement for Contractor's failure to perform the work specified in this Agreement or to keep any required insurance policies in force during the entire term of this Agreement. 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. (B) Alternatively, the City Manager may terminate this Agreement for convenience upon 30 days advance written notice to the Contractor. The Page 5 of 8 City Manager may also terminate this Agreement upon 24 hours written notice to the Contractor for failure to pay or provide proof of payment of taxes as set out in this Agreement. 20. Assignment. No assignment of this Agreement by the Contractor, or of any right or interest contained herein, is effective unless the City Manager first gives written consent to such assignment. The performance of this Agreement by the Contractor is of the essence of this Agreement, and the City Manager's right to withhold consent to such assignment is within the sole discretion of the City Manager on any ground whatsoever. 21. Severability. Each provision of this Agreement is considered to be severable and, if, for any reason, any provision or part of this Agreement is determined to be invalid and contrary to applicable law, such invalidity shall not impair the operation of nor 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 had been omitted. 22. Order of Precedence. In the event of any conflicts or inconsistencies between this Agreement, its attachments, and exhibits, such conflicts and inconsistencies will be resolved by reference to the documents in the following order of priority: A. this Agreement and its attachments B. the bid solicitation document, including addenda (Exhibit 1) C. the Contractor's bid response (Exhibit 2) 23. Certificate of Interested Parties. Contractor agrees to comply with Texas Government Code Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of Interested Parties" as part of this Agreement. 24. Governing Law. This Agreement is subject to all federal, State, and local laws, rules, and regulations. The applicable law for any legal disputes arising out of this Agreement is the law of the State of Texas, and such form and venue for such disputes is the appropriate district, county, or justice court in and for Nueces County, Texas. 25. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written, between the parties. Page 6 of 8 (SIGNATURE PAGE FOLLOWS) Page 7 of 8 CONTRACTOR Signature: C Ir w Printed Name: C n'1,,, -N-e. qxe6. ,,.4;.rc, r -C, Date: / ~ I / / CITY OF CORPUS CHRISTI Signature: Printed Name: Title: Date: Attached and Incorporated by Reference: Attachment A: Scope of Work Attachment B: Bid/Pricing Schedule Attachment 0: Insurance/Bond Requirements Attachment D: Warranty Requirements Incorporated by Reference Only: Exhibit 1: RFB/RFP No. 172 Exhibit 2: Contractor's Bid/Proposal Response Page 8 of 8 Attachment A: Scope of Work 1. General Requirements A. The Contractor will operate and manage the City of Corpus Christi's Al Kruse Tennis Center("The Center") located at 502 King Street, Corpus Christi, TX 78401. B. The City will pay the Contractor $3,166.00 per month, payable monthly by the tenth business day of each calendar month during this contract for this service for an annual total of $38,000.00. The Contractor will also receive 50% of revenue later defined as City Revenue. Any fee due after fiscal year 2017, is subject to appropriation by City council in the applicable fiscal year budget. C. Contractor shall be granted the exclusive right to operate and collect 95% of the revenue from a Pro Shop at the Center including the right to: 1. Sell Merchandise 2. Rent rackets, ball machines, buckets of balls 3. String and repair rackets 4. Operate a food and drink concession 2. Scope of Work A. Contractor shall operate the tennis center in conformity with the laws of the State of Texas and ordinances, rules and regulation of the City of Corpus Christi. B. Contractor shall operate, manage, and maintain the Center, including without limitation, all activities in the locker/restroom. C. Contractor shall employ a sufficient number of employees to assist in conducting lessons, operating the Pro Shop, and scheduling courts. All employees shall be employees of the Contractor, not the City. D. Contractor shall provide fidelity bonds for Contractor and any employees who handle cash or credit cards. These bonds must be provided to the Contract Administrator and must be a good and sufficient fidelity bond in the sum of Five Thousand ($5,000) Dollars, written by a corporate surety duly licensed under Texas laws to write fidelity bonds. These bonds must be kept in effect for the entire term of this agreement and any holdover period. These bonds must assure payment to the City of all City revenue collected by Contractor and Contractor's employees on behalf of the City and the prompt payment of five (5%) percent of Contractor's revenue, including Lesson Revenue, to which City is entitled. E. At City's cost, Contractor and any assistants, sub -contractors or support personnel shall complete a national background history check with the City prior to instructing. The City shall retain the right to prohibit anyone from working on this agreement based on the results of the background check. F. Contractor shall ensure all employees conduct themselves in an orderly manner and in keeping with the conduct required of employees in service organizations. Contractor shall ensure that employees do not consume intoxicating substances on premises or report to work under the influence of same. Contractor and its employees shall use language and conduct that is suitable to families and youth. G. None of the contract services may be subcontracted without the prior written approval of the Contract Administrator. H. Contractor shall adequately publish and enforce all rules and regulations governing the playing of tennis, fees and all other activities, as may be conducted at the Center. I. Contractor will provide suitable signage at the Pro Shop advising the public that the business activity is operated by the Contractor as an independent contractor and not operated by the City. J. Contractor must maintain and promote a continuing program to attract citizens and tourists to use the Center, particularly weekend play, and must maintain rental tennis rackets for use by the public. A schedule of hours of operation for must be posted and filed with the Contract Administrator. K. Contractor shall organize, promote, recruit and conduct local and United States Tennis Association (USTA) sanctioned tennis tournaments. L. Contractor shall provide promote the game of tennis through youth programs. M. Contractor must submit to the Contract Administrator, each month, a program of activities for the forthcoming month identifying, at a minimum, leagues, lessons, youth and adult programs, tournaments by dates and estimated number of participants and hours of operation. N. Contractor must notify the Contract Administrator of all dangerous conditions or special defects. Contractor must not use, or allow to be used, any areas of the Center which has dangerous conditions or special defects. 0. Contractor shall be responsible for providing all necessary supplies to operate and manage the tennis center. The Contractor may collect and retain rental fees for the utilization of their equipment such as ball machines. P. Contractor shall be responsible for picking up trash generated by use of the Center for classes, tournaments, clinics, camps, etc. This includes trash on and immediately around the courts, restroom facility, and office at the beginning or conclusion of use. Trash is defined as any discarded, unwanted or worthless material or object. Q. Contractor shall make no alterations to the Center without the Contract Administrator prior written approval. R. The City is responsible for all Center maintenance and minor repairs at the Center. Contractor shall allow the City or its designee's entrance during normal operating hours for the purpose of maintenance. In consideration of this, it is agreed that the Contractor must make no claim for any damages against the City for loss of income due to the City's failure to make any repairs. S. Contractor shall make a minimum of four tennis courts available to the public whenever the Contractor or authorized individuals are giving, or available to give tennis lessons, with the exception of tournaments. T. Contractor must collect and deposit specified City and Pro Revenue daily into the City's account. City Revenue is defined as all court fees, permit fees, locker fees, and other City charges at the then current rate set by the Contract Administrator. City Revenue does not include any Pro Revenue. Pro Revenue is defined as all gross revenue received from the Pro Shop or for the use of the Center, including but not limited to, tournaments, league play, summer camps, merchandise sales, racket rentals, tennis lessons, racket stringing, racket repairs, food and drink sales, excluding all applicable separately stated taxes and bulk merchandise sales to schools at wholesale prices if Contractor provides the Contract Administrator with a copy of the sales receipt. To be excluded from Pro Revenue, any other wholesale or bulk sale to anyone but a school, must be approved in writing by the Contract Administrator prior to the sale. Pro revenue also includes Lesson Revenue. Contractor has the exclusive right at the Center to give, or authorize tennis lessons, camps, or other forms of teaching sessions. If any person receiving tennis lessons does not have a tennis permit, Contractor must charge a court fee for each lesson provided, which will be deposited as City revenue. U. Contractor must deposit, daily, fifty percent (50%) of City Revenue and five percent (5%) of Pro Revenue, together with daily cash register tapes and the daily report at the City's designated depository. V. Contractor shall be granted the exclusive right to operate a Pro Shop at the Center including the right to: 5. Sell Merchandise 6. Rent rackets, ball machines, buckets of balls 7. String and repair rackets 8. Operate a food and drink concession 3. Productivity Review A. Tennis facility productivity reviews will take place quarterly; four times per contract year to review items for a $500.00 "Productivity Award". B. The Contractor will be scored annually on the six items below. If the Contactor rates 85% or higher on each of the six items the Contractor is eligible to receive a Productivity Award. The award may be awarded at the discretion of the Contract Administrator. 1 Programming - Types/levels and times of programs being offered; number of participants; any partnerships with local association groups or schools. A breakdown on the type of tournament and court hours used for adults, junior, leagues, mixers/social groups and tournaments. During the review, the Contractor must bring all programing information above and/or present documentation that an effort was made to offer these services. 2. Customer Service - A customer service survey must be made available to all participants of the facility. Surveys or copies of any completed surveys will be turned in quarterly. Receiving low scoring surveys or customer service complaints will not necessarily result in a "Needs Improvement" rating. During the review, Contractor should bring proof of surveys sent out to participants, date they were sent out and address of all participants that took part in surveys. 3. Maximizing Court Usage - Daily court reservation sheets shall be maintained. During the review, Contractor must turn in quarterly report of courts reservation sheets to be reviewed. 4. Court Revenue - Quarterly revenue targets will be reviewed and the timely reporting of deposits made to the City. Revenue targets will be derived from a three year court fee revenue average that will be broken down by months. During the review, the City will determine if the Contractor met the targets. If the Contractor does not meet the target he/she must provide documentation as to why these goals were not met. 5. Facility Audits - Random facility audits will be made during each quarter. Areas to be reviewed are: cleanliness of pro shop, court maintenance, fire safety compliance, and hours of operation. See Exhibit 1 - Tennis Centers Facility Inspection Form. Contractor must maintain an 85% rating or better. 6. Community Involvement - Contractor shall provide information on any community outreach during each quarter. Such as: teacher in-service, free clinics, presentations at neighborhood associations, schools, churches, volunteering, etc.. During the review, the contractor must provide documentation from any meetings attended or printed material from presentations or flyers from any programs that were offered. 4. Grading Factors A. Contractor shall maintain an 85% or above on each of the six areas listed under the Productivity Review to receive the Productivity Award. B. If the Contractor does not meet expectations on one or all of the six area items, the Contractor will receive a "Needs Improvement" rating and will be given the opportunity to raise this to a passing grade. C. If the Contractor consistently receives a "Needs Improvement" under 85% on their quarterly review, the future renewal options and/or considered default of contract. 5. Record Keeping A. Contractor shall furnish to the Contract Administrator a certified monthly statement of Pro Revenue on or before the tenth day of each month during the contract term. The Contract Administrator will approve the statement form prior to commencement of the Contract. B. Contractor shall keep accurate books of account of all Pro Revenue collected. The books of account will be open for inspection, copy, or audit by the City Manager, or designee, at all times. All books of account and backup documentation must be available to the Contract Administrator for review during the City's business hours. C. Contractor shall have all underlying documentation for Pro Revenue, Lesson Revenue, City Revenue and Contractor's certified monthly statement, including cash register tapes, purchase orders, invoices, sales receipts, counter information, and the like must be preserved by the Contractor during the Contract term. Request for Proposal No.: Event 172 Addendum No.: 1 October 21, 2016 Request for Clarification Question No. 4 Question: How is the electricity, Internet and cable bill handled in the pro shop? Response: The City of Corpus Christi pays for the electricity. The Contractor is responsible for Internet and cable costs. Attachment B: Bid/Pricing Schedule Compensation and Payment. The City will pay the Contractor $3,166.00 per calendar month for Services completed and accepted by the City within 30 days of receipt of an acceptable invoice. In the event the initial term does not begin at start of a calendar month, the initial monthly invoice shall be paid on pro rata basis. The Contractor will also receive 50% of City Revenue and 95% of the Pro Revenue as stated in the RFP as amended. The Contractor may receive a $500 quarterly productivity award as provided in the RFP as amended. Attachment C: Insurance Requirements INSURANCE REQUIREMENTS I. CONTRACTOR'S LIABILITY INSURANCE A. Contractor must not commence work under this contract until all insurance required has been obtained_and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. B. Contractor must furnish to the City's Risk Manager and Contract Administrator one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation endorsement is required on GL, AL and WC if applicable. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -day advance written notice of cancellation, non -renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Commercial Broad Form 2. Premises - Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury $1,000,000 Per Occurrence $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2. Hired and Non -Owned 3. Rented/Leased $1,000,000 Combined Single Limit WORKERS' COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employers Liability Statutory and complies with Part II of this Exhibit. $500,000/$500,000/$500,000 CRIME $500,000 per occurrence PROPERTY 1. Replacement cost Contractor will be responsible for providing property coverage for any and all damage to personal property or equipment, regardless if owned, rented, leased or borrowed that is stored on-site. C. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II. ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers' Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. C. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non -renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non -renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor's performance of the work covered under this contract. H. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2016 Insurance Requirements Purchasing Al Kruse Tennis Center Management 10/25/16 gms Risk Management Attachment D: Warranty Warranty is not applicable for this service. Al Kruse Tennis Center Management RFP 172 Proposal Evaluation p S - All American Tennis TOPS Tennis LLC Ronald Elizondo Gerald Tjon-A-Joe Halloday Tennis Evaluation Criteria Minimum Qualificafions Pass Pass Fail Pass Fail Member of the USTA and certified as a USPTA Professional 1 or Master Professional or a USPTA Professional. Operated continuously for a minimum of five years providing Tennis Center Management Services. No outsanding lawsuits during last 5 years No outsanding regulatory issues last 5 years No current litigation ith the City during the last 5 years References Provided X X X Technical Proposal Technical Proposal (50 points) 40 32 0 31.5 0 Experience Team Experience Understanding of Project Scope Interview Technical Proposal (50 points) 32.5 44 0 22.5 Experience Team Experience Understanding of Project Scope Total 72.5 76 0 54 0 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos, 1- 4 and 6 if there are ,nterested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. TOPS Tennis LLC Dallas, TX United States Certificate Number: 2016-128820 Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 10/25/2016 Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 172 Provide tennis management services for Al Kruse Tennis Center 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT STEVE FOLTZ Notary Public. State of Texas �.. /;= My Commission Expires ,,' August 15, 2017 swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Signature of authorized agent of contracting business entity AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said ( .L rt r 6 11 Z_ this the /67 day , of f 20 /7 , to certify which, witness my hand and seal of office. •!de /---, Z 11004v Signature of o r admi istering oath Printed name of officer administering oath Title of offi r dministering oath Forms nrnvideri by Tpyac Pthirc r nmmieoinn .ethtcs.state.tx.us Version V1.0.277 INFORMAL STAFF REPORT MEMORANDUM To: Margie C. Rose, City Manager Thru: Jay Ellington, Interim Assistant City Manager From: Stacie Talbert Anaya, Interim Director of Parks & Recreation From: Kim Baker, Assistant Director of Financial Servicesp5 Date: January 12, 2017 �� Subject: Al Kruse Tennis Center Tennis Professional Contract Issue/ Problem It has been brought to staffs attention that an entity or individual who submitted a proposal for consideration of the Al Kruse Tennis Center Tennis Professional Contract has approach a councilmember (s) regarding the award. Background & Findings The Parks and Recreation Department, in conjunction with the Purchasing Department, issued a Request for Proposal (RFP) to identify a tennis professional or company to operate the Al Kruse Tennis Center on October 7, 2016 with a closing date of November 18, 2016 at 3:00 pm. Proposals have been reviewed and staff is currently preparing an agenda item to come before City Council for approval of the contract. The agenda item is scheduled to be on the January 31, 2017 City Council meeting for the first reading and February 14, 2017 City Council meeting for the second reading. Section 3.13 of the RFP — Disqualification or Rejection of Proposals of the RFP specifically states that a proposer may be disqualified if they fail to adhere to generally accepted ethical and professional principles during the process. Section 3.27 -- Proposer's Ethical Behavior further clarifies expectations of the proposers during the process and states that they may not attempt to lobby or influence a vote recommendation through contact with City Council members. By contacting a City Council member prior to introduction of the agenda item pertaining to the contract, any proposer is disqualified from consideration for the award of the contract. Conclusion AI Kruse Tennis Center Tennis Professional Contract pg 2 Please refer any questions or concerns from proposers or other parties pertaining to this RFP process to Stacie Talbert Anaya, Interim Director of Parks and Recreation at staciet@cctexas.com or Kim Baker, Assistant Director of Finance — Purchasing. INFORMAL STAFF REPORT MEMORANDUM TO: Margie C. Rose, City Manager FROM: E. Jay Ellington, Interim Assistant City Manag DATE: February 8, 2017 SUBJECT: Al Kruse Tennis Center Solicitation Investigation: As directed by the City Manager, the Interim Assistant City Manager conducted a fact finding investigation which included: reviewing the Purchasing Department's specifications and process for issuing RFP's, the process for scoring proposers to the RFP, the review process for proposers who met the minimum qualifications, and reviewing the signed petition, citizens comments and interviews. Issue/Problem: Although the City's solicitation language prohibits contact by proposers/bidders, the short term contractor recently contacted City Council members about not being recommended for award of the new contract that is scheduled to be heard by Council in February. In addition, a person representing the incumbent is also contacting Council members and staff questioning why the incumbent was not being selected. The following addresses these issues and concerns to include discussion, conclusions and recommendations. Backgrounds and Findings: Ronald Elizondo, a tennis pro, was selected to take over the existing short term contract when the former contractor running the center retired. A short-term professional services contract was issued to Mr. Elizondo in June of 2016 for a six-month period that contained a drastically reduced scope necessary to keep the tennis center open until such time as a new solicitation could be developed and new contract awarded. Staff were clear that Page 1 of 2 this was a temporary contract and that five years of experience would be needed to obtain the permanent contract. This requirement was also in the previous two solicitations that were issued in 2013. A request for proposals (RFP) was publicly advertised and open for proposals in October of 2016 for the full services of operating the tennis center which includes the operation of the Pro Shop. The RFP contained a set of instructions to be followed. The RFP also contained set evaluation criteria, including minimum requirements that the proposers would need to meet, and an applicable point system that the proposals would be evaluated upon. A pre -proposal meeting was held October 14, 2016 to discuss the requirements of the solicitation. Mr. Elizondo did not attend this conference. A period for questions was allowed and all responses to those questions were sent to all participants. Proposals were due in November of 2016. Five proposals were received, one of which was past the deadline and therefore deemed non responsive, a second one belonging to the incumbent was submitted on time but was also deemed non responsive for failing to comply with a number of required areas of the RFP (for example, failing to follow RFP instructions, lack of required information and less than five years of experience). The remaining three went on to be evaluated by the selection committee, which included an interview to confirm understanding of the scope. These proposers' scores were then tallied and ranked and ranged between a low of 54 points to a high of 76 points. Staff is recommending award to the highest ranked proposer. In our follow up to citizen concerns, the Interim Assistant City Manager E. Jay Ellington, held meetings with Mr. Elizondo and Mrs. Beaty. Mr. Ellington reviewed the petition signed by 188 users of the center and was informed by Mr. Elizondo that he did not have the required 5 years of pro -shop operation experience that was required. This requirement has been a part of our specifications for the last two RFP issuances for tennis center operators. Conclusion: In conclusion, we understand that Mr. Elizondo is concerned about no longer having the contract at the Al Kruse tennis center as a tennis pro, however a procurement process was followed that was fair and without bias to select the most qualified firm to run this center. The department has a need for a company that is experienced in running a center that includes a pro shop that generates revenue for the City. Staff stands behind the recommendation to award the contract to the company that was deemed most qualified and provides the best value to the City and its citizens. Should there be any further questions or concerns about this issue, please contact Stacie Talbert Anaya, Parks and Recreation at 361.826.3476 or email at staciet@cctexas.com or Kim Baker, Purchasing at 361.826.3169 or email at kimb2@cctexas.com. Page 2 of 2 INFORMAL STAFF REPORT MEMORANDUM To: Margie C. Rose, City Manager qQ„.... Thru: Jay Ellington, Interim Assistant City Manager ,fi From: Stacie Talbert Anaya, Interim Director of Parks & Recreation Kim Baker, Assistant Director of Financial Services — Purchasing Division Date: February 28, 2017 Subject: Al Kruse Tennis Center Management Agreement Issue/Problem During the February 14, 2017 City Council meeting several Council Members requested clarification about the agenda awarding the management service agreement for Al Kruse Tennis Center. Specifically the Council asked for clarification on the following issues: 1. Identify Tops Tennis LLC previous experience in successfully managing tennis facilities. 2. Demonstrate why Ronald Elizondo's proposal was deemed nonresponsive. 3. Provide information on the Interim Management Agreement previously held by Ronald Elizondo. 4. Provide a table of revenues for Al Kruse Tennis Center. In addition to the questions from the February 14, 2017 City Council Meeting additional emails have been sent to the City in various forms that need to be addressed as follows: 5. Ronald Elizondo sent an email on February 14, 2017 to Council Members indicating that he was not allowed to run a Pro Shop at Al Kruse and that the Evaluation Matrix indicated that he did not have a current USPTA certification. Included with the email were two expired UPSTA certifications one from 2013 and one from 2016. 6. Ronald Elizondo sent an email on February 15, 2017 to Council Members indicating that a Parks and Recreation employee had put a stop to his activities at the Al Kruse Tennis Center, which included a number of calendars attached. 7. Ronald Elizondo sent on February 20, 2017 an email to the City Secretary from with a number of attached documents and an implication that staff did not receive Mr. Elizondo's entire proposal based on comments made at the City Council Meeting of February 14, 2017. Each item above will be discussed below: CCARS Item — AI Kruse Tennis Center Item 1: Issue/Problem Identify Tops Tennis LLC previous experience in successfully managing tennis facilities Background & Findings Tops Tennis Qualifications and Experience: Tops Tennis LLC was the highest scoring qualifying proposal reviewed by the committee based on their experience and proposed operational plans. TOPs Tennis LLC is a newly formed company started by two Tennis Professionals, Brett Marcotte and Chris Foltz. Both professionals previously managed their own companies BDM Tennis and McKinnley Tennis LLC respectively, but have joined forces under their new company TOPs Tennis LLC to pursue work together. BDM has been providing the same scope of services as required at Al Kruse for the City of Carrollton Texas for the last seven years and were recently awarded a new five-year agreement. Chris under McKinley Tennis has done similar work for the Cities of Rowlett, Little Elm and the Colony since 2009. The business is operated from Brett's home, as all services are provided onsite. TOPs Tennis LLC provided a proposal that meet all the requirements of the solicitation. They provided a full proposal, which outlined every item in the evaluation criteria and included a number of programs they would like to develop for Al Kruse. The proposal also included projected revenues as requested. Staff has checked references as required by the process and has spoken to the City of Carrollton's Parks and Recreation department about their experiences with Brett and his company. The City of Carroliton's Parks and Recreation Director has confirmed a very positive experience with Brett and his company. The City indicated that they have a successful program with increased revenue that has been led by Brett since 2003, first as a Tennis Pro and then as manager of tennis operations as of seven years ago. The City awarded a new contract to Brett for another five years in April 2016. Conclusion The department has a need for a company that is experienced in managing a tennis center that includes a pro shop that generates money for the City. A procurement process was followed that was fair and without bias to select the most qualified respondent to manage Al Kruse Tennis Center. Tops Tennis LLC, through their proposal, demonstrated they are the most qualified respondent. Page 2 CCARS Item — Al Kruse Tennis Center Item 2: Issue/Problem Demonstrate why Ronald Elizondo's proposal was deemed nonresponsive Background & Findings Ronald Elizondo's Proposal Mr. Elizondo's proposal was deemed non-responsive based on the following issues. The first item was a pass/fail requirement. Page 2, Section 2.26. of the RFP calls for the minimum requirements for the proposer: "The Prosper must have operated continuously for a minimum of five years providing Tennis Center Management Services which includes management, supervision and operation of a tennis facility. Contractor must submit the following with its proposal: contact information of the person that will be in charge of this contract. Include name, title, phone number, cell number, mailing address and e- mail address for each." It's important to note this was not a new requirement for the Al Kruse Tennis Center Management, as this five years of experience requirement has existed in this solicitation for many years including back to 2005 and 2010 solicitations. It is also a fairly common requirement in most of the City's other solicitations. To date has not been an issue to get qualified firms that meet this requirement as was demonstrated in this latest solicitation, as all other proposers met this requirement. This information was not included in Mr. Elizondo's proposal, which creates an area of non- responsiveness. However, staff still reached out to him to determine if he had the five continuous years of experience required, he affirmed that he did not. This made his proposal non responsive and ineligible for further review. Had the proposal not failed to meet the minimum requirements and progressed on in the process to the technical proposal review stage, the second issue involves a failure to submit the required number of copies per the Request for Proposal (RFP). Page 20, Section 5.1.C. of the RFP states: "The Proposer shall provide one electronic copy, via flash drive or compact disk, along with 3 bound hard copies of the proposal before the DUE DATE FOR PROPOSALS." Mr. Elizondo submitted one unbound hard copy of his proposal, which consisted of a three page technical proposal the required forms, letters of recommendation, his USPTA certificate and a signed sample contract. Page 3 CCARS Item — Al Kruse Tennis Center The third issue was a failure to submit the proposal in the format that was outlined in the RFP. The significance of this is that key pieces of information were left out of Mr. Elizondo's submittal leaving the evaluation team unable to evaluate his experience and plan forward. Page 21 Section 5.3.A. of the RFP states: "The transmittal letter shall be the first item in your proposal and shall indicate the intention of the Proposer to adhere to the provisions described in the RFP. The transmittal letter SHALL: 1. Be presented on company letterhead; 2. Identify the submitting organization; 3. Acknowledge receipt of any addenda to this RFP; 4. Identify, by name and title, and be signed by the person authorized by the organization to obligate the organization contractually. 5. Statement indicating willingness to sign Service Agreement as written. 6. Provide list of references on forms provided. For item 6 above, Page 2, Section 2.2.F. of the RFP went on to state: "The Proposer's must provide references on the two-page "REFERENCES" form provided in the bid. The Proposer must provide three current client references and three former client references (or as many current and former client references as Proposer has available) for which the same services have been provided. This information will be used to determine the extent to which the Proposer is able to provide the services described herein to an entity the size of the City of Corpus Christi, as well as the level of customer service exhibited by the Proposer." Mr. Elizondo did not provide a response to first five items listed above. In response to item six, his references did not include organization or company names. All of his references were private customers, demonstrating limited or no experience running a business with clients. The purpose of requesting this information was to determine things such as, how the proposer runs the current business, how they have grown the business, how they interact with customers and the Owner, and what programs were developed. In other words, were they successful and would you hire them again. The fourth issue related to a requirement on Page 21, Section 5.3E. of the RFP which included the following requirements for the format and content of the proposal: "The sixth item in your proposal shall be your actual proposal and associated documents. The proposal shall be organized in the same manner as the evaluation criteria and should address all items outlined in the criteria. Include client references with contract information that can be verified by the Evaluation Committee." Mr. Elizondo's technical proposal consisted of a cover sheet, second page contained two paragraphs on target audience and one sentence on development plan referencing the third page, which contained a chart of, proposed programs titled "business growth and profitability", however neither were defined. The proposal did not cover the material outlined in the Page 4 CCARS Item — Al Kruse Tennis Center Evaluation Criteria published in the RFP and therefore, could not have been evaluated even had he been declared responsive under the other items. Conclusion Mr. Elizondo's proposal did not meet the minimum requirements established in the RFP, nor does his experience as tennis professional meet the minimum qualifications in order to be considered for review. Item 3: Issue/ Problem Provide information on the Interim Management Agreement previously held by Ronald Elizondo. Background & Findings Temporary Management Agreement: The Parks & Recreation Department entered into a temporary management agreement with Ronald Elizondo beginning June 1, 2016 after interviewing a number of local firms that turned down the temporary agreement. The agreement outlined the following duties and requirements: • Contractor at contractor's expense, shall employee sufficient employees to assist Contractor and pay all payroll taxes • Maintain and promote a continuing program to attract citizens and tourists to use the Al Kruse Tennis Center • Deposit all City Revenue on a daily basis and provide record keeping • Pay monthly security bill for the Tennis Center building. • Must have and maintain a Class 1 Rating from the United States Professional Tennis Association. The contract also specifically prohibited the contractor from operating a pro shop without a separate written agreement due to his lack of experience managing a facility. The initial term of the agreement ran through November 2016. Initially, the contractor had success operating the center and participation increase. However, a few months after the temporary agreement was executed, the department began to field complaints about the contractor. Tennis players and past colleagues of Mr. Elizondo called or emailed complaints about poorly run tournaments, his lack of respect for existing leagues and programs in the area, as well as his interactions with other members of the tennis community. One email from a Corpus Christi Tennis Association member and Tennis Success board member stated "Ronald's actions have a polarizing effect on the tennis community. I know he is doing some good things at Al Kruse but I fear for the future of the overall tennis community." Page 5 CCARS Item — Al Kruse Tennis Center In October, staff learned the contractor was operating a Pro Shop at the center. When presented with the information, the contractor claimed ignorance despite several conversations with staff about the issue. In response, the Legal Department drafted an amendment to the original agreement was executed leaving no doubt the prohibition of operating a Pro Shop. Mr. Elizondo signed the amendment and chose not only to cease selling merchandise but also ceased scheduling tournaments, leagues and lessons, thereby reducing revenue to the City. In December and January, staff received notification that the security bill for the tennis facility had not been paid. Upon notifying Mr. Elizondo of the delinquency, he continuously stated it had been paid and there must be an error on the security agency side. However, Mr. Elizondo could not produce proof of payment and the service payments were three months in arrears. Staff is currently working to rectify the situation and get the bill paid. The Parks and Recreation Department extended Mr. Elizondo's contract through January 2017 due to delays in the RFP process. On February 1, 2017 the Parks and Recreation Department assumed temporary operations of the Al Kruse Tennis Center within its current staffing complement. Other programs under the responsibility of these staff members will be compromised should this become a long-term situation. Conclusion Ronald Elizondo had issues performing the services outlined in the temporary contract as outlined above. His inability to follow the contract has been reflected in his inability to follow the solicitation process now creating a delay in getting a qualified firm under contract to enhance the program at the Al Kruse Tennis Center. Mr. Elizondo had many months to prepare his proposal while anticipating the release of the RFP and a first hand look at what it would take to run the Al Kruse center while performing the temporary services. This should have allowed him to take advantage of the situation to meet all the necessary requirements for the award. However, the proposal does not reflect these requirements and the evaluators can only evaluate what was provided. Item 4: Issue/Problem Provide a table of revenues for Al Kruse Tennis Center. Background & Findings History of Revenues Collected at Al Kruse Tennis Center: Page 6 CCARS Item — Al Kruse Tennis Center Below is a table demonstrating the revenue collected from the Al Kruse Tennis Center during Mr. Elizondo's temporary management agreement: YR FY 16 JUN JUL AUG SEP Total FY 16 YR FY 17 OCT NOV DEC JAN Total FY 17 Pro 317 545 250 262 1,374 Pro 56 0 0 0 56 Tennis Center 1,556 2,837 1,485 1,330 7,208 Tennis Center 638 362 321 517 1,838 Total 1,873 3,382 1,735 1,592 8,582 Total 694 362 321 517 1,894 The Pro revenue is comprised of the city's share of merchandise sales and fees generated through leagues, tournaments and lessons. The tennis center revenue is the city's share of court fees and locker fees. Mr. Elizondo retained 95% of activities associated with lessons and leagues; 50% of the court fees per his agreement. Below is a table demonstrating the revenue collected from the Al Kruse Tennis Center by Susan Torrence since fiscal year 2014 through the time she resigned in 2016: YR Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total FY16 Pro 246 210 248 318 298 359 379 501 2559 TC 537 517 646 857 689 851 659 1258 6009 Total 783 724 894 1175 987 1210 1037 1759 8568 FY15 Pro 373 189 236 218 193 293 458 340 436 436 338 308 3818 TC 704 566 385 382 957 539 907 489 716 808 404 740 7596 Total 1077 754 620 599 1150 832 1365 829 1152 1243 742 1048 11414 FY14 Pro 463 252 237 277 252 323 356 320 474 575 398 317 4244 TC 1623 491 488 630 919 465 1231 619 • 653 537 794 878 9318 Total 2086 743 728 907 1171 788 1597 939 1117 1112 1192 1195 13562 release note that the center was undergoing renovations February — June 2016 to make repairs and resurface to courts that had limited use prior to renovations. Our reporting documents do not include participant numbers only register information. Conclusion Although revenues appear to have increased during the peak summer months after Ronald Elizondo took over the freshly renovated center, the revenues are declining to about half of what they had been in the fall/winter months. Staff has been concerned about Al Kruse and wants to make the programs stronger and increase participation and revenue to reduce the subsidies from the City budget. Staff believes getting a fresh perspective on the center by a team that has been successful in significantly increasing a similar City's revenue while maintaining the community involvement and pride in the center would be in the best interest of the City for the long term. Page 7 Item 5: Issue/Problem Ronald Elizondo sent an email on February 14, 2017 to Council Members indicating that he was not allowed to run a Pro Shop at Al Kruse and that the Evaluation Matrix indicated that he did not have a current USPTA certification. Included with the email were two expired UPSTA certifications one from 2013 and one from 2016. Background & Findings The information on Ronald's temporary contract is outlined in Item 6 below. The Pro Shop activities were excluded from the temporary contract that Ronald signed. The evaluation matrix did have an error in that an additional x was placed in the line for Ronald's USPTA certificate. The Senior Buyer for the City that was handling this solicitation had placed the x there as Ronald's USPTA certificate listed a different level of certification than the solicitation required; however the Buyer did proceed to contact the USPTA and they confirmed that the certification is valid. She inadvertently missed removing the box after verification, but everyone involved in the solicitation review was aware that Ronald's certification meets the intent of the RFP. Staff takes responsibility for the box not being removed however no issues have ever been raised by staff on this topic and due to the fact that all five minimum requirements had to be met in order to be deemed responsive, this one item did not affect that outcome. Ronald was deemed non responsive based on a number of items as outline in Item 2 above. As for the two USPTA certificates that were provided with this email, they were both expired. The one that expired in 2016 had been submitted with the proposal and was deemed acceptable at that time as explained above. Conclusion Staff administered the contract as written and the contract did not include Pro Shop activities. There was a clerical error on the evaluation matrix, but that error did not affect the evaluation of the proposal nor did it affect the determination that Ronald Elizondo's proposal was nonresponsive to the RFP. Page 8 Item 6: CCARS Item — AI Kruse Tennis Center Issue/Problem Ronald Elizondo sent an email on February 15, 2017 to Council Members indicating that a Parks and Recreation employee had put a stop to his activities at the Al Kruse Tennis Center, which included a number to calendars attached. Background & Findings The Parks & Recreation Department entered into a temporary management agreement with Ronald Elizondo beginning June 1, 2016. Please see Item 3, which explains the terms of the temporary agreement and the issues related to the Pro Shop. Conclusion Staff were providing the appropriate level of contract administrative oversight required by the City to monitor the activities on the contract. Staff took appropriate action to bring to Ronald Elizondo's attention that he was out of compliance with the contract and issued an amendment to the contract to make sure it was absolutely clear what those duties entailed since Ronald indicated he was confused by the language and discussions upon his hiring so that no misunderstanding would occur going forward. Staff handles all contracts in the same manner and this level of oversight is not unique to this one facility. Item 7: Issue/Problem Ronald Elizondo sent an email to the City Secretary from on February 20, 2017 with a number of attached documents and an implication that staff did not receive Mr. Elizondo's entire proposal based on comments made at the City Council Meeting of February 14, 2017. Background & Findings Upon receiving the email from Mr. Elizondo, both Mr. Ellington and Kim Baker asked for clarification from the Purchasing Department as to what had been received from Mr. Elizondo in is original submission for the RFP. Kim Baker, Assistant Director of Finance — Purchasing, confirmed that Mr. Elizondo had submitted all of the documentation included in the email with the exception of the p4ated 2017 certification from the United States Professional Tennis Association and the flyer. However, the majority of the documents were not requested for nor responsive to the RFP. The RFP did not ask respondents to submit a signed contract nor a flyer demonstrating marketing for a league or program. The document titled "Al Kruse Tennis Center Proposal 2016-2017" is three pages long and does not provide all of the information required in the RFP and fails to list Mr. Elizondo's work experience to demonstrate he meets minimum qualifications to be considered for the agreement. Page 9 CCARS Item — AI Kruse Tennis Center Conclusion Mr. Elizondo's email dated 2/20/2017 further demonstrates that he did not adequately respond to the RFP. Page 10 AGENDA MEMORANDUM First Reading Item for the City Council Meeting of March 21, 2017 Second Reading Item for the City Council Meeting of March 28, 2017 DATE: March 6, 2017 TO: Margie C. Rose, City Manager FROM: E. Jay Ellington, Director, Parks and Recreation Department JayEll(c�cctexas.com 361-826-3464 Appropriate Funds from the Sale of Park Properties CAPTION: Ordinance authorizing the City Manager or designee to execute all documents necessary to appropriate $765,453.93 funds from sale of park properties in the 4720 Community Enrichment Fund for park improvements and other related projects as described on the attached and incorporated Exhibit A. PURPOSE: To appropriate $765,453.93 in funds from the sale of park properties in the 4720 Community Enrichment Fund for park improvements and other related projects. BACKGROUND AND FINDINGS: In October 2012, the Parks & Recreation Master Plan was approved by City Council and identified 27 parks to be repurposed by means of adoption, lease, transfer to another government entity, sale or allowing them to return to a natural state. Three (3) of 27 were repurposed and/or adopted shortly after the plan was approved. June/July 2014 - Public hearings were held at City Council to place the remaining 24 parks on the ballot for approval of voters to sell. During this time, seven (7) additional parks were adopted or transferred to another agency for maintenance and removed from list to be considered by voters. Ballot language for Proposition 3 — Sale of City Parkland for the remaining 17 parks was established. September 2014 - City Council passed a resolution on September 16, 2014, Enactment No. 030278, mandating the proceeds of park property sales were to be reinvested in existing parks. By city ordinance, Enactment No. 029640, the proceeds from the sale of the parks must be reinvested in the park system according to the 2012 Parks & Recreation Master Plan. In November 2014, voters approved Proposition 3 to authorize the city to list designated park properties for sale. In early 2015, the City elected the vehicle for selling the properties would be to list them with a licensed real estate broker and negotiate the highest cash offer for each property. Three parks (Caribbean, Kosar and Breakwater) were removed from the list because leases or sales with governmental entities are being explored. The Clower Company (TCC) was identified through the request for qualification process to represent the City in the transactions. The properties were listed for sale in a multiple listing service on January 24, 2016. To date, five parks have sold: Acushnet Park, Fountain Park, Peary Park, Willow Park and Parkland Park. Parkland Park, sold in the previous fiscal period, FY15-16. The funds for that park, $113,956.10, were appropriated on January 31, 2017, Ordinance Enactment No. 031053. ALTERNATIVES: Do not accept and appropriate the funds. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: City Council must accept and appropriate funds. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal, Finance FINANCIAL IMPACT: ❑ Operating X Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $3,370,457.73 $3,370,457.73 Encumbered/ Expended Amount $306,411.33 $306,411.33 This item $765,453.93 $765,453.93 BALANCE $3,829,500.33 $3,829,500.33 Fund(s): The No. 4720 Community Enrichment Fund was established to record revenues and expenditures for park land acquisition, park development and improvement of parks. Comments: None RECOMMENDATION: Staff recommends approval of this ordinance. LIST OF SUPPORTING DOCUMENTS: Ordinance Exhibit A Map of Parks Ordinance authorizing the City Manager or designee to execute all documents necessary to appropriate $765,453.93 funds from sale of park properties in the 4720 Community Enrichment Fund for park improvements and other related projects as described on the attached and incorporated Exhibit A. Be it Ordained 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 appropriate $765,453.93 funds from sale of park properties in the 4720 Community Enrichment Fund for park improvements, and other related projects as described on the attached and incorporated Exhibit A. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED, this the day of , 2017. ATTEST: Rebecca Huerta Mayor City Secretary City of Corpus Christi 4720 Community Enrichment Fund - Revenue only Park Sale Funds Exhibit A Account # Org. # Description 343590 21300 Sale of City Property - Acushnet Park 343590 21300 343590 21300 343590 21300 Sale of City Property - Fountain Park Sale of City Property - Peary Park Sale of City Property - Willow Park TOTAL PARK SALE APPROPRIATION Appropriated January 31, 2017 - Parklane Park Total Park Sales To Date Unappropriated Park Sale Amount $ 619,683.50 $ 65,848.30 $ 33,415.05 $ 46,507.08 $ 765,453.93 $ 113,956.10 $ 879,410.03 Designated Park Project Schanen HB Trail; Breckenridge, Middlecoff, Crestmont Parks West Haven and Moody Parks Paul Jones Sports Complex Thebeau and Alexander Parks Acushnet Park 6746 Aaron St. CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Fountain Park 4938 Moody CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Park Location _• Peary Park 1750 Paul Jones Ave. CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Willow Park 11418 Willowood CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading for the City Council Meeting of March 28, 2017 DATE: February 6, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Closing a portion of a utility easement located at 15401 Dyna Street CAPTION: Ordinance abandoning and vacating a 233 -square foot portion of an existing utility easement out of a part of Padre Island- Corpus Christi No. 4, Block 235, Lot 1, located at 15401 Dyna Street and requiring the owner, Hadi Mostaghasi d/b/a H & M Homes, to comply with the specified conditions. Collecting a one-time fee for fair market value of $830.06. PURPOSE: The purpose of this item is to eliminate a portion of a utility easement and allow for Hadi Mostaghasi d/b/a H & M Homes to construct a new residential home in the lot. BACKGROUND AND FINDINGS: Hadi Mostaghasi d/b/a H & M Homes (Owner) is requesting the abandonment and vacation of a 233 -square foot portion of an existing utility easement out of a part of Padre Island- Corpus Christi No. 4, Block 235, Lot 1, located at 15401 Dyna Street. The abandonment and vacation of the utility easement is being requested by the Owner in conjunction with the construction of a new residential home. Staff recommends the Owner pay a one-time fair market value fee in accordance with City Code of Ordinance Section 49-13. The Owner will not 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 will, however, 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 stated objections regarding the proposed utility easement abandonment. FINANCIAL IMPACT: ❑ Operating • •Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item One-time fee $830.06 $830.06 BALANCE $830.06 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. 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. b. In exchange for the City's grant of the easement closure the Owner agrees to provide the City with a one-time payment of $830.06 LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Ordinance abandoning and vacating a 233 -square foot portion of an existing utility easement out of a part of Padre Island- Corpus Christi No. 4, Block 235, Lot 1, located at 15401 Dyna Street and requiring the owner, Hadi Mostaghasi d/b/a H & M Homes, to comply with the specified conditions. Collecting a one-time fee for fair market value of $830.06 WHEREAS, Hadi Mostaghasi d/b/a H & M Homes (Owner) is requesting the abandonment and vacation of a 233 -square foot portion of an existing utility easement out of a part of Padre Island- Corpus Christi No. 4, Block 235, Lot 1, located at 15401 Dyna Street; WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate a 233 -square foot portion of an existing 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 Hadi Mostaghasi d/b/a H & M Homes ("Owner"), a 233 -square foot portion of an existing utility easement out of a part of Padre Island- Corpus Christi No. 4, Block 235, Lot 1, located at 15401 Dyna Street, as recorded in Volume 33, Pages 44-47, of the 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 and field notes, "Exhibit B", which is the graphical representation of the legal, and "Exhibit C", which is the location map which are attached to and incorporated in this ordinance by reference as if it was 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. 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. b. In exchange for the City's grant of the easement closure the Owner agrees to provide the City with a one-time payment of $830.06 c. Failure to comply with all the conditions outlined in this Ordinance within 180 days will hereby make the Ordinance null and void. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta City Secretary Mayor STATE OF TEXAS COUNTY OF NUECES EXHIBIT A Field Notes of a 233 SF tract out of a 7.5' utility easement out of Lot 1, Block 235, Padre Island Corpus Christi No. 4, as shown on a map recorded in Volume 33, Pages 44 — 47, Map Records of Nueces County, Texas. Said 233 SF tract being more particularly described as follows: COMMENCING at a 5/8" iron rod found in west right of way of Dyna Street for the common east corner of Lots 1 and 2, THENCE with the west right of way of Dyna Street, North 00°47'04" East, a distance of 4.75 feet to a point for the southeast comer of this survey and the POINT OF BEGINNING. THENCE with the west right of way of Dyne Street North 00°47'04" East, a distance of 2.75 feet to a point for the northeast corner of the said 7.5' utility easement and for the northeast corner of this survey, from WHENCE a 5/8" iron rod found for the northeast comer of Lot 1 bears North 00°47'04" East, a distance of 57.51 feet. THENCE with the north line of said 7.5' utility easement, North 89°12'56" East, a distance of 85.00 feet to a point for the northwest corner of this survey. THENCE South 00°47'04" West, a distance of 2.75 feet to a point for the southwest corner of this survey. THENCE South 89°12'56" West, a distance of 85.00 feet to the POINT OF BEGINNING of this survey, and containing 233 SF 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. 3.) Set 5'8" iron rod = iron rod set with yellow plastic cap labeled Brister Surveying. 1, Ronald E. Brister do hereby certify that this survey of the property legally described herein was made on the ground this day November 10, 2016 and is correct to the best of my knowledge and belief. ?e;eriaa2' e. Ronald E. Brister, RPLS No. 5407 Date: November 10, 20I6. Job No. 161669 Sheet 1 of 3 SCALE 1"=20' SURVEY OF A 233 SQUARE FOOT TRACT OUT OF A 7.5' EASEMENT OUT OF LOT 1, BLOCK 235, PADRE ISLAND CORPUS CHRISTI NO. 4, AS SHOWN ON A MAP RECORDED IN VOLUME 33, PAGES 44 - 47, MAP RECORDS NUECES COUNTY, TEXAS. • it POKE © • FOUND VW IRON ROD LOT 2, BLOCK 235 PI- CC NO. 4 VOL. 33., P. 44-47 M.R.N.C.T. co 10 LI: NIIO' 47' 04'E, 4.75' (MEAS) L2: N00° 47' 04"E, 2.75' (MEAS) �y L3• SOD' 47' 04"W. 2.75 (MEAS) 0 SI.8VL1 DAM SHEET 2OFI NOVEMBER 10, 2016 r I 7.5' U.E. LOT 1, BLOCK 235 PI-CCNO. 4 VOL. 33., P. 44-47 M.R.N.C.T. UTILITY EASEMENT CLOSURE 233 S.F. LI L2 fel Brister Surveying 4659 Everhan Suite IIID Corpus Christi, Tams 711411 Orr 361.850. r8o0 Fax 361.831- I80; Briar ersurvey in8@mrpus.Ivecbc.mm Firm Reaisuation Nu. 111072800 EXHIBIT B NOTES: I) TOTAL SURVEYED AREA 150.033 ACRES. 2.) MEASURED BEARINGS ARE BASED ON GLOBAL POSITIONING SYSTEM NAD 83 (93) 4205 DATUM 3) A METES AND ROUNDS DESCRIPTION OF EQUAL DATES ACCOMPANIES THIS SURVEY N00° 47' 04"E 5751' (MEAS) 15401 DYNA STREET 60' RIGHT OF WAY THIS SURVEY DOES NOT INCLUDE THE RESEARCH, INVESTIGATION. OR LOCATIONS OF ALL SERVITUDES. EASEMENTS. RIGHT OF WAYS, OR UTILITIES ON THIS PROPERTY. I. RONALD E. MUSTER DO HEREBY CERTIFY THAT THIS SURVEY OF THE PROPERTY LEGALLY DESCRIBED HEREIN WAS MADE ON THE GROUND THIS DAY NOVEMBER 10.2016 AND IS CORRECT TOTOF MY KNOWLEDGE AND BEI IEF anaace. RONALD E. BRISTER R.P,LS. NO. 5407 SCALE 1"=20' LOT 2, BLOCK 235 PI-CCNO.4 VOL. 33., P. 44-47 M.R.N.C.T. 0 SHEET3OF3 1 EXHIBIT C LOT 42, BLOCK 235 PI- CC NO. 4 VOL. 33., P. 44-47 M.R.N.C.T. 75'U.E. LOT 1, BLOCK 235 PI-CCNO. 4 VOL. 33., P. 44-47 M.R.N.C.T. 30' B.L. 15401 DYNA STREET 60' RIGHT OF WAY OQ FOUND SM' IRON ROD Aerial Overview • --...1111.111111111 iagdajg» aka Vicinity Map t N AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading for the City Council Meeting of March 28, 2017 DATE: February 6, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Closing a portion of a utility easement located at 7185 Lake Placid CAPTION: Ordinance abandoning and vacating an 87.3 -square foot portion of an existing utility easement out of a part of Lake Placid Estates, Block 2, Lot 1, located at 7185 Lake Placid and requiring the owner, George A. Segundo and Estefany Segundo, to comply with the specified conditions. Collecting a one-time fee for fair market value of $102.14 PURPOSE: The purpose of this item is to eliminate a portion of a utility easement and allow for George A. Segundo and Estefany Segundo to construct a new residential home in the lot. BACKGROUND AND FINDINGS: George A. Segundo and Estefany Segundo (Owners) is requesting the abandonment and vacation of an 87.3 -square foot portion of an existing utility easement out of a part of Lake Placid Estates, Block 2, Lot 1, located at 7185 Lake Placid. The abandonment and vacation of the utility easement is being requested by the Owner in conjunction with the construction of a new residential home. Staff recommends the Owner pay a one-time fair market value fee in accordance with City Code of Ordinance Section 49-13. The Owner will not 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 will, however, 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 stated objections regarding the proposed utility easement abandonment. FINANCIAL IMPACT: ❑ Operating • •Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item One-time fee $102.14 $102.14 BALANCE $102.14 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. 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. b. In exchange for the City's grant of the easement closure the Owner agrees to provide the City with a one-time payment of $102.14 LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Ordinance abandoning and vacating an 87.3 -square foot portion of an existing utility easement out of a part of Lake Placid Estates, Block 2, Lot 1, located at 7185 Lake Placid and requiring the owner, George A. Segundo and Estefany Segundo, to comply with the specified conditions. Collecting a on-time fee for fair market value of $102.14. WHEREAS, George A. Segundo and Estefany Segundo (Owners) are requesting the abandonment and vacation of an 87.3 -square foot portion of an existing utility easement out of a part of Lake Placid Estates, Block 2, Lot 1, located at 7185 Lake Placid; WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate an 87.3 -square foot portion of an existing 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 George A. Segundo and Estefany Segundo ("Owner"), an 87.3 -square foot portion of an existing utility easement out of a part of Lake Placid Estates, Block 2, Lot 1, located at 7185 Lake Placid, as recorded in Volume 50, Pages 143-144of the 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 and field notes, "Exhibit B", which is the graphical representation of the legal, and "Exhibit C", which is the location map which are attached to and incorporated in this ordinance by reference as if it was 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. 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. b. In exchange for the City's grant of the easement closure the Owner agrees to provide the City with a one-time payment of $102.14 c. Failure to comply with all the conditions outlined in this Ordinance within 180 days will hereby make the Ordinance null and void. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta City Secretary Mayor CURVE DATA 0 R=527.04' L =03° 48' 20" L=35.01' T=17.51' Lc=N15° 34' 53" E 35.00' 0 R=527.04' p =03° 48' 20" L=35.01' T=17.51' Lc=N19° 23' 13" E 35.00' R=524.54' p =03° 48' 20" L=34.84' T=17.43' Lc=S19° 23' 13" W 34.83' LINE DATA L1=S 68° 42' 37" E 2.50' L2=N 72° 30' 57" W 2.50' LOT 1 0 COMMON AREA (FLOODWAY) EXHIBIT A VICINITY MAP LOT 2 (z S 88° 50' 36" DATE: 02/15/2017 00 / / ,i LAKE PLACID DRIVE -------LTb}-t'---/kPac. — (32' R.O.W.) BLOC REVISION: CREW: RS & DL OFFICE: RV & RG GF#: JOB#: 16-6827 KEY: WOOD FENCE [RECORDED] WIRE FENCE (MEASURED) This property lies within Zone A-13(10'), according to FIRM 89 which is within the 100 year Flood Plain, NOT VALID WITHOUT ORIGINAL SIGNATURE AND ORIGINAL SEAL. Registered Professional Land Surveyor State of Texas No. 2293 87.3 S.F. Of Lot 1, Block 2, Lake Placid Estates Volume 50, Page 143-144, (M.R.N.C.T.) Corpus Christi, Nueces County, Texas VOSS ENGINEERING, INC. ENGINEERING & LAND SURVEYING 6838 GREENWOOD DRIVE, CORPUS CHRISTI, TEXAS 78415 tLIPAt.OC4 OCA CAAA A 'tf. OCA OCO ACAC Exhibit B STATE OF TEXAS JOB NO. 16-6827 COUNTY OF NI.JECESS 87.3 S.F. EASEMENT CLOSURE ALL that certain tract or parcel of land situated in Nueces County, Texas, same lying within the Corporate City Limits of Corpus Christi, Texas, same being out of Lot 1, BIock 2, Lake Placid Estates as recorded in Volume 50, Pages 143-144 of the Map Records of Nueces County, Texas, and being more particularly described by metes and bounds as follows, to wit: COMMENCING at a 5/8 inch iron rod found for the South corner of said Lot 1, Block 2, same being the East corner of Lot 2 of said Block 2; THENCE, along the common boundary line of said Lots 1 and 2, NORTH 61 degrees 08 minutes 24 seconds WEST 10.37 to a point, same lying in the West boundary line of a ten foot utility easement lying within said Lot 1, same West boundary line being a curve to the right; THENCE, along said West boundary line of the ten foot utility easement and with said curve to the right, a central angle of 03 degrees 48 minutes 20 seconds, a radius of 527.04 feet, a tangent of 17.51 feet, a length of arc of 35.01 feet and n chord bearing and length of NORTH 15 degrees 34 minutes 53 seconds EAST 35.00 feet to a point for the point of beginning and the Southwest corner of this tract; THENCE, continuing along said West boundary line of the ten foot utility easement and with said curve to the right, a central angle of 03 degrees 48 minutes 20 seconds, a radius of 527.04 feet, a tangent of 17.51 feet, a length of arc of 35.01 feet and a chord bearing and length of NORTH 19 degrees 23 minutes 13 seconds EAST 35.00 feet to a point for the Northwest corner of this tract; THENCE, SOUTH 68 degrees 42 minutes 37 seconds EAST 2.50 feet to a point for the Northeast corner of this tract; THENCE, along the East boundary Line of this tract and with a curve to the left, a central angle of 03 degrees 48 minutes 20 seconds, a radius of 524.54 feet, a tangent of 17.43 feet, a length of arc of 34.84 feet and a chord bearing and length of SOUTH 19 degrees 23 minutes 13 seconds WEST 34.83 feet to a point for the Southeast corner of this tract; THENCE, NORTH 72 degrees 30 minutes 57 seconds WEST 2.50 feet to the point of beginning and containing 87.3 square feet of land. 1 hereby certify that this survey as reflected in the above Field Notes and attached plat conforms to the current Texas Surveyors Association Standards and Specifications for a Category IA, Condition II Land Survey. Dated this the _6th_ clay of _December , 2016. Ronald A. Voss, Registered Professional Land Surveyor No.2293 SCALE: r • 20' LOT 1 COMMON AREA (FLOODWAY)cD Exhibit C LOT 2 [S 88. 10495��T1 (S50' nr 9 88a 47' OS" E 35 � `Rs 9 61T6q LoGc3„ E V.G,\N 7185 LAKE PLACID DRIVE (32' R.O.W.) r r°� el NOTES: (1.) Found SIS' I.R. a ER lot comer un411 noted otherwise. (Z.) House Tree are to tee feurdatIon L Ronald A. Vola. a Repistend Professional Land Surveyor. do gentry certify !tat this survey wee nude on the ground of the prooMy shown heron under my direction and supervision; Rut 11 Is my knowledge and meet; foal there aro no apparent encroachments ordvedapdng at lmprcroments with the deed knee except as shown hen=- This 501007 was Pnrlarmed without the benefit of a Till. Pciicy or Title Opinion. NOTE: THIS SURVEY 15 FOR THE SOLE USE OF THE BUYER. TITLE COMPANY OR MORTGAGE COMPANY IN THIS TRANSACTION ONLY. NO LICENSE HAS BEEN CREATED. EXPRESSED OR IMPLIED. TO COPY THE SURVEY WHICH 15 VOID AFTER SX MONTHS FROM THE DATE OF THIS SURVEY. BUYER: This properly fin w1RYn Zane A.1 a 1C .09910 FIRM 59 Audi la widen the 100 year Hood Pik, NOT VALID WITHOUT ORGtNAL � w SIGNATURE AND OR GINAL SEAL J v14"-- Refastened Profession! Land Burveyer Sane of Tema No 22'+3 DATE: 09/23/2016 REVISION: CREW: RS & DL OFFICE: RV & RG GF#: JOB#: 16-6827 Lot 1, Block 2, Lake Placid Estates Volume 50, Page 143-144, (M.R.N.C.T.) Corpus Christi, Nueces County, Texas KEY: WOOD FENCE [RECORDED] WIRE FENCE (MEASURED) VINYL FENCE VOSS ENGINEERING, INC. ENGINEERING & LAND SURVEYING 6838 GREENWOOD DRIVE, CORPUS CHRISTI, TEXAS 78415 PHONE: 361.854.6202 FAX: 361.853.4696 Aerial Overview 1 N Vicinity Map t N AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading for the City Council Meeting of March 28, 2017 DATE: February 7, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Closing a utility easement located between Stampede Drive and Elizondo Drive. CAPTION: Ordinance abandoning and vacating a 0.030 -Acre portion of an existing utility easement out of a part of Flour Bluff and Encinal Farm and Garden Tracts, Section 25, Lot 30 & Rancho Vista Subdivision Unit 7, Block 15, Lots 10 and 23 and requiring the owner, Yorktown Oso Joint Venture, to comply with the specified conditions. PURPOSE: The purpose of this item is to eliminate a utility easement and allow for Yorktown Oso Joint Venture to re -plat two lots for a new proposed subdivision. BACKGROUND AND FINDINGS: Yorktown Oso Joint Venture (Owner) is requesting the abandonment and vacation of a 0.030 - Acre portion of an existing utility easement out of a part of Flour Bluff and Encinal Farm and Garden Tracts, Section 25, Lot 30 & Rancho Vista Subdivision Unit 7, Block 15, Lots 10 and 23, located between Stampede Drive and Elizondo Drive. The abandonment and vacation of the utility easement is being requested by the Owner in conjunction with the submission of the final plat of Rancho Vista Subdivision Unit 14. Staff recommends the Owner pay no fair market value fee in accordance with Texas Local Government Code §272.001 (b) because the Owner will be dedicating several utility easements throughout the proposed subdivision which will greatly exceed the area of the requested closure. 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 will, however, 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 stated objections regarding the proposed utility easement abandonment. FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital • •Not applicable Fiscal Year: 2016- 2017 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 condition 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. 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 a 0.030 -Acre portion of an existing utility easement out of a part of Flour Bluff and Encinal Farm and Garden Tracts, Section 25, Lot 30 & Rancho Vista Subdivision Unit 7, Block 15, Lots 10 and 23 and requiring the owner, Yorktown Oso Joint Venture, to comply with the specified conditions. WHEREAS, Yorktown Oso Joint Venture (Owner) is requesting the abandonment and vacation of a 0.030 -Acre portion of an existing utility easement out of a part of Flour Bluff and Encinal Farm and Garden Tracts, Section 25, Lot 30 & Rancho Vista Subdivision Unit 7, Block 15, Lots 10 and 23; WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate a 0.030 -Acre portion of an existing 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 Yorktown Oso Joint Venture ("Owner"), a 0.030 -Acre portion of an existing utility easement out of a part of Flour Bluff and Encinal Farm and Garden Tracts, Section 25, Lot 30, as recorded in Volume A, Pages 41-43, Map Records of Nueces County, Texas, and Rancho Vista Subdivision Unit 7, Block 15, Lots 10 and 23, as recorded in Volume 68, Pages 83-84, 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 and field notes, "Exhibit B", which is the graphical representation of the legal, and "Exhibit C", which is the location map which are attached to and incorporated in this ordinance by reference as if it was 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 compliance with Texas Local Government Code 272.001(b). 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. Failure to comply with all the conditions outlined in this Ordinance within 180 days will hereby make the Ordinance null and void. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED on this the day of , 2017. ATTEST: Rebecca Huerta City Secretary Mayor Exhibit A 0.030 Acre Easement Closure STATE OF TEXAS COUNTY OF NUECES Job No. 39319.B6.02 October 13, 2016 Fieldnotes, for a 0.030 Acre, Easement Closure, over and across, Lot 30, Section 25, Flour Bluff and Encinal Farm and Garden Tracts, a map of which is recorded in Volume A, Pages 41-43, Map Records of Nueces County, Texas and Lots 10 and 23, Block 15, Rancho Vista Subdivision Unit 7, a map of which is recorded in Volume 68, Pages 83-84, Map Records of Nueces County, Texas; said 0.030 Acre Tract, being more fully described by metes and bounds as follows: Commencing, at a 5/8 Inch Iron Rod, with red plastic cap stamped "URBAN ENGR CCTX" Found, for the North corner of the said Lot 10, Block 15; Thence, South 57°42'08" West, 112.00 Feet, to the Northeast line of an existing 7.50 Foot wide utility easement as shown on the recorded plat of the said Rancho Vista Subdivision Unit 7, for the Point of Beginning and North corner of this Tract; Thence, South 32°17'52" East, with the said Northeast line, 58.34 Feet, for an inner ell corner of this Tract; Thence, South 61°17'51" East, continuing with the said Northeast line, 32.23 Feet, to the Ndrthwest line of an existing 7.50 Foot wide utility easement recorded in Document No. 2007045050, Official Public Records of Nueces County, Texas, for the Easternmost corner of this Tract; Thence, South 39°40'26" West, with the said Northwest line, 2.95 Feet; Thence, North 61°17'51" West, 8.61 Feet; Thence, South 28°42'09" West, 12.10 Feet, to the Southwest line of an existing 7.50 Foot wide utility easement as shown on the recorded plat of the said Rancho Vista Subdivision Unit 7, for the South corner of this Tract; Thence, North 61°17'51" West, with the said Southwest line, 26.93 Feet; Thence, North 32°17'52" West, with the said Southwest line, at 22.22 Feet, pass the Northwest boundary line of the said Lot 23, continuing with the Southwest line of an existing 7.50 Foot wide utility easement recorded in Document No. 2013043887, said Official Public Records, in all a distance of 62.22 Feet, for the West corner of this Tract; S:1Surveying1393191B6021OFFICEIMETES AND BOUNDSIMB_39319B602_20160927_EasementClosure.doc Page 1 of 2 (361)854-3101 2725 SWANTNER DR. • CORPUS CHRISTI, TEXAS 78404 www,urbaneng,com TBPE Firm #145 TBPLS Firm #10032400 FAX (361)854-6001 Thence, North 57°42'08" East, with the Northwest line of the said 7.50 Foot wide utility easement, 15.00 Feet, to the Point of Beginning, containing 0.030 Acres (1,304 Square Feet) of Land, more or less. Bearings are based on GPS, NAD83, State Plane Coordinates, Texas South Zone 4205. This description was prepared from record information and does not represent a current on the ground Survey. 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 des Mh+� V9�k James D. Carr, R,P.L.S. License No. 6458 S:ISurveying139319IB6021OFFICEIMETES AND BOUNDS\MB_39319B602 20160927_EasementClosure.doc Page 2 of 2 Laurelas Drive 4 / / / / / / / / Point of Beginning Point of Commencement ti Oa Legend: • 5/8 Inch Iron Rod \ with cap stamped "URBAN ENGR CCTX" Found Utility Easement Closure 0.030 Acres 1,304 Sq. Ft. ,b 23 6 4 24 / 9 / Roy h / `lel'o; o L. 8 YC.�S0 of 1'9s Ubq,. h \• N4eoes '''''5:°'-' Soh cos t 40y �qo;4 5.6 -, \ \ 7'e4,00 ch O�'oago 66xfg `155 25 26 e/Co 84,>2 o„4Mos > Te+ os 90 LINE BEARING DISTANCE L1 932'17'52"E 58.34' L2 S61'17'51'E 32.23' L3 S39'40'26'W 2.95' L4 N61'17'51"W 8.61' L5 S28'42'09'W 12.10' L6 N61'17'51'W 26.93' L7 N32'17'52'W 62.22' L8 N57'42'08"E 15.00' 60 30 0 60 120 Graphic Scale 1 =60' Exhibit B Sketch to Accompany Fieldnotes for a 0.030 Acre, Easement Closure, over and across, Lot 30, Section 25, Flour Bluff and Encina) Farm and Garden Tracts, a map of which is recorded in Volume A, Pages 41-43, Map Records of Nueces County, Texas and Lots 10 and 23, Block 15, Rancho Vista Subdivision Unit 7, a map of which is recorded in Volume 68, Pages 83-84, Map Records of Nueces County, Texas. URBAN ENGINEERING IBPE FIPI.1 NO. .5. 75PLS FRU NO. 10032400 DATE: October 13, 2016 SCALE: 1"=60' JOB NO.: 39319.B6.02 SHEET: 1 of 2 DRAWN BY: XG urbansurveyl ®urbaneng.com 02016 by Urban Engineering Location Map IIURBAN ENGINEERING TOPE FIRM NO. .5. TEPLS FM NO. 10032100 Exhibit C DATE: Sept. 27, 2016 SCALE: None JOB NO.: 39319.B6.02 SHEET: 2 of 2 DRAWN BY: XG urbansurveyl ®urboneng.com 02016 by Urban Engineering Ecmner A ?M 0 i E � Yorktown Boulevard HOT' 0\ m \ s rE is PEw Bor T Dr. S Dr_ E Calci Avian Bellac \ St Dens Grenaele`� aA` Hor EBB Nela O ��ec q Daae o` e v ro Dr. ague Brown D TH m High Gun, c Jr. N0to �,a`� E t e� Stampede Dr. G �w� Idle for Dr. Hector P. aB Garcia Dr. s�� arm v Corpus Christi, ,�� a Texas Location Map IIURBAN ENGINEERING TOPE FIRM NO. .5. TEPLS FM NO. 10032100 Exhibit C DATE: Sept. 27, 2016 SCALE: None JOB NO.: 39319.B6.02 SHEET: 2 of 2 DRAWN BY: XG urbansurveyl ®urboneng.com 02016 by Urban Engineering Aerial Overview 1 N Vicinity Map t N AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of March 21, 2017 Second Reading Ordinance for the City Council Meeting of March 28, 2017 DATE: TO: FROM: March 10, 2017 Margie C. Rose, City Manager Fred A. Segundo, Director of Aviation FredS@cctexas.com 289-0171 ext.1213 Appropriating $622,950 from the Federal Aviation Administration Grant to the Airport Capital Improvement Fund to extend Taxiway "K" (Kilo) Construction for the support of United Coast Guard operations; at Corpus Christi International Airport. CAPTION: Ordinance appropriating $622,950 from Federal Aviation Administration Grant No. 3-48- 0051-050-2013, Amendment No. 4, in the No. 3020 Airport Capital Improvement Fund for construction of approximately 7,150 square yards of new pavement to expand and extend Taxiway Kilo at the Corpus Christi International Airport and necessary drainage, electrical, lighting and signage improvements, with the 10% match provided from the Airport Capital Reserve Fund; amending the FY2016-2017 Capital Budget by increasing revenues and expenditures by $622,950 each. PURPOSE: The Federal Aviation Administration (FAA) funds major capital improvements at Corpus Christi International Airport (CCIA) through its Airport Improvement Program (AIP) grants. The FAA previously offered Grant 50 in the amount of $25,011,128 to the City of Corpus Christi to fund Runway 13/31; 1,000 ft. Extension Displacement and Associated Taxiways and Runway 17/35 NAVAIDS' Site Work and Install Gate 10B; and is now offering Amendment 4 for a total amount of $622,950 for Taxiway Kilo. BACKGROUND AND FINDINGS: This is a joint FAA/City project with a respective 90/10 percent construction cost sharing. This project provides construction to install approximately 7,150 SY of new pavement in order to expand and extend Taxiway Kilo at CCIA with associated drainage, electrical, lighting and signage improvements. The additional improvements were presented to the FAA Program Manager and approved for additional funding by way of a $622,950 amendment to Grant 50. ALTERNATIVES: The only alternative would be for the additional project costs to be funded entirely from Airport funds or foregoing the additional improvements. Airport staff is of the opinion that improvements provide a substantial benefit to the Airport. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The project is consistent with Airport Master Plan. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Legal Finance Management and Budget FINANCIAL IMPACT: ❑Operating ❑Revenue ®Capital ❑Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $25,011,128 $622,950 0 $25,011,128 Encumbered / Expended Amount $0 $0 0 $0 This item 0 $622,950 0 $622,950 BALANCE $25,011,128 $622,950 0 $25,634,078 Fund: Airport CIP Fund Grants RECOMMENDATION: Staff recommends approval of the Ordinance LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance appropriating $622,950 from Federal Aviation Administration Grant No. 3-48-0051-050-2013, Amendment No. 4, in the No. 3020 Airport Capital Improvement Fund for construction of approximately 7,150 square yards of new pavement to expand and extend Taxiway Kilo at the Corpus Christi International Airport and necessary drainage, electrical, lighting and signage improvements, with the 10% match provided from the Airport Capital Reserve Fund; amending the FY2016-2017 Capital Budget by increasing revenues and expenditures by $622,950 each. Be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. Funds in the amount of $622,950 from the Federal Aviation Administration for grant Amendment No. 4, Grant No. 3-48-0051-050-2013, are appropriated in the No. 3020 Airport Capital Improvement Fund for construction of approximately 7,150 square feet of new pavement to expand and extend Taxiway Kilo at Corpus Christi International Airport and necessary drainage, electrical, lighting and signage improvements, with the 10% match provided from the Airport Capital Reserve Fund. SECTION 2. The FY2016-2017 Capital Budget adopted by Ordinance No. 030936 is amended by increasing revenues and expenditures by $622,950 each. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb The foregoing ordinance was read for the second time and passed finally on this the day of , 2017, by the following vote: Mayor Ben Molina Rudy Garza Lucy Rubio Paulette Guajardo Greg Smith Michael Hunter Carolyn Vaughn Joe McComb PASSED AND APPROVED, this the day of , 2017 ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta Mayor City Secretary 0 U.S. Department of Transportation Federal Aviation Administration February 22, 2017 Federal Aviation Administration Southwest Region, Airports Division, Texas Airports Development Office Mr. Fred Segundo Airport Director Corpus Christi International Airport 1000 International Blvd. Corpus Christi, Texas 78406 Dear Mr. Segundo: Fort Worth, Texas 76193-0650 This is in response to your letter of February 21, 2017 requesting an amendment to the Grant Agreement for AIP Project No. 3-48-0051-050-2013 at Corpus Christi International Airport, Texas. In accordance with Grant Special Condition No. 16 which states in part: "It is mutually understood and agreed that .. if there is an overrun in the eligible project costs, FAA may increase the grant to cover the amount of overrun not to exceed the statutory fifteen (15%) percent limitation and will advise the sponsor by letter of the increase. Upon issuance of either of the aforementioned letters, the maximum obligation of the United States is adjusted to the amount specified." This Grant Agreement, accepted on September 4, 2013 is hereby amended by this Amendment No. 4 by increasing the amount set forth on Page 2 of the Grant Agreement from $25,011,128.00 to $25,634,078.00. This increase in the maximum obligation is to provide for allowable 2.99 % cost overrun of $622,950.00. If you have any questions or if we can be of additional service, please contact us. Sincerel Ben Guttery, ager Texas Airports istrict Office AGENDA MEMORANDUM First Reading at the City Council Meeting of March 21, 2017 Second Reading at the City Council Meeting of March 28, 2017 DATE: March 8, 2017 TO: Margie C. Rose, City Manager THRU: Sylvia Carrillo, Assistant City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP@cctexas.com (361) 826-3227 Authorization for Issuance of Solid Waste Certificates of Obligation CAPTION: Ordinance authorizing the issuance of "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2017" in an amount not to exceed $2,500,000 for the purpose of financing costs associated with making permanent public improvements to the City's Solid Waste System; providing for the payment of said Certificates by the levy of an ad valorem tax upon all taxable property within the City and further securing said Certificates by a lien on and pledge of the pledged revenues of the Solid Waste System; providing the terms and conditions of said Certificates and resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said Certificates, including the approval and distribution of an Official Statement; authorizing the execution of a paying agent/registrar agreement and a purchase contract; complying with the requirements of the letter of representations on file with the depository trust company; delegating the authority to certain members of the City staff to execute certain documents relating to the sale of the Certificates; enacting other provisions incident and related to the subject and purpose of this ordinance; and providing an effective date. PURPOSE: The City plans on issuing up to $2,500,000 of certificates of obligation to fund regulatory capital projects for Solid Waste. The certificates of obligation will be needed to fund some key capital projects for Solid Waste that are associated with a compliance deadline, including a Gas Collection and Control System (GCCS) that must be operational by November 11, 2017 and the procurement of a flare. BACKGROUND AND FINDINGS: According to the Local Government Code, Section 271.049, prior to the issuance of the certificates of obligation, the City is required to publish notice of its intention to issue the certificates once a week for two consecutive weeks in a newspaper of general circulation, with the date of the first publication to be before the 30th day before the date set for passage of the ordinance to authorize the issuance of the certificates. The notices were in the Corpus Christi Caller -Times on February 5, 2017 and February 12, 2017. Thirty days after the date of the first publication is March 7, 2017, and so City Council action to approve this ordinance in its second reading is scheduled for March 28, 2017 and is in compliance with the Local Government Code. ALTERNATIVES: n/a OTHER CONSIDERATIONS: n/a CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON -EMERGENCY: n/a DEPARTMENTAL CLEARANCES: • Solid Waste Department • Financial Services Department • Bond Counsel • City Attorney's Office FINANCIAL IMPACT: Not Applicable ❑ Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. Current Year Future Years TOTALS (CIP Only) Budget - $ 2,500,000 - $ 2,500,000 Encumbered/Expended amount of (date) - - - - This item - $ 2,500,000 - $ 2,500,000 BALANCE - - - - FUND(S): CIP Fund COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the ordinance as presented. LIST OF SUPPORTING DOCUMENTS: Ordinance DRAFT 3/9/17 ORDINANCE NO. AUTHORIZING THE ISSUANCE OF "CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2017" IN AN AMOUNT NOT TO EXCEED $2,500,000 FOR THE PURPOSE OF FINANCING COSTS ASSOCIATED WITH MAKING PERMANENT PUBLIC IMPROVEMENTS TO THE CITY'S SOLID WASTE SYSTEM; PROVIDING FOR THE PAYMENT OF SAID CERTIFICATES BY THE LEVY OF AN AD VALOREM TAX UPON ALL TAXABLE PROPERTY WITHIN THE CITY AND FURTHER SECURING SAID CERTIFICATES BY A LIEN ON AND PLEDGE OF THE PLEDGED REVENUES OF THE SOLID WASTE SYSTEM; PROVIDING THE TERMS AND CONDITIONS OF SAID CERTIFICATES AND RESOLVING OTHER MATTERS INCIDENT AND RELATING TO THE ISSUANCE, PAYMENT, SECURITY, SALE, AND DELIVERY OF SAID CERTIFICATES, INCLUDING THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT AND A PURCHASE CONTRACT; COMPLYING WITH THE REQUIREMENTS OF THE LETTER OF REPRESENTATIONS ON FILE WITH THE DEPOSITORY TRUST COMPANY; DELEGATING THE AUTHORITY TO CERTAIN MEMBERS OF THE CITY STAFF TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE CERTIFICATES; ENACTING OTHER PROVISIONS INCIDENT AND RELATED TO THE SUBJECT AND PURPOSE OF THIS ORDINANCE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Corpus Christi, Texas (the City) has caused notice to be given of its intention to issue certificates of obligation in the maximum principal amount of $2,500,000 for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to -wit: (1) the construction of improvements to the City's solid waste facilities, including (without limitation) paying contractual obligations to be incurred with respect to the construction of a gas collection and control system and procurement of a gas flare, (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of-way for authorized needs and purposes relating to the aforementioned facilities; and (3) the payment of professional services related to the design, construction, management and financing of the aforementioned projects. This notice has been duly published in a newspaper hereby found and determined to be of general circulation in the City, once a week for two (2) consecutive weeks, the date of the first publication of such notice being not less than thirty (30) days prior to the tentative date stated therein for the final passage of the ordinance authorizing the issuance of such certificates of obligation; and 62262507.4 WHEREAS, the City Council hereby finds and determines that the actions authorized hereby and the adoption of this Ordinance are in the best interest of the citizens of the City; and WHEREAS, no petition protesting the issuance of the certificates of obligation described in this notice, signed by at least 5% of the qualified electors of the City, has been presented to or filed with the City Secretary prior to the date tentatively set in such notice for the passage of this ordinance; and WHEREAS, the City Council hereby finds and determines that certificates of obligation in the principal amount of $2,500,000 described in such notice should be issued and sold at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. A. Authorization - Designation - Principal Amount - Purpose. The certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of TWO MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($2,500,000), to be designated and bear the title of "CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2017" (the Certificates), for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to -wit: (1) the construction of improvements to the City's solid waste facilities, including (without limitation) paying contractual obligations to be incurred with respect to the construction of a gas collection and control system and procurement of a gas flare, (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of- way for authorized needs and purposes relating to the aforementioned facilities; and (3) the payment of professional services related to the design, construction, management and financing of the aforementioned projects, pursuant to the authority conferred by and in conformity with the laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code Section 271.041 through Section 271.064, Section 363.135, as amended, Texas Health and Safety Code, Chapter 1371, as amended, Texas Government Code (Chapter 1371), and the City's Home Rule Charter. B. Delegation of Authority to Authorized Officials. As authorized by Chapter 1371, the City Manager of the City, the Assistant City Manager of the City, and the City's Director of Financial Services (each of the foregoing, individually, an Authorized Official) are hereby authorized, appointed, and designated as the officers of the City authorized to individually act on behalf of the City in selling and delivering the Certificates authorized herein and carrying out the procedures specified in this Ordinance, including approval of the aggregate principal amount of each maturity of the Certificates, the redemption provisions therefor, and the rate of interest to be borne on the principal amount of each such maturity. Each Authorized Official, acting for and on behalf of the City, is authorized to execute the Approval Certificate attached hereto as Schedule I. The Certificates shall be issued in the principal amount not to exceed $2,500,000; the maximum maturity of the Certificates will be March 1, 2057 and the net effective per annum interest rate shall not exceed a rate greater than 7.00% per annum calculated in a manner consistent with the provisions of Chapter 1204, as amended, Texas Government Code. Lastly, 62262507.4 -2- each Authorized Official is authorized to select the bond insurer, if any, with respect to the Certificates. The execution of the Approval Certificate shall evidence the sale date of the Certificates by the City to the Purchasers (hereinafter defined) in accordance with the provisions of Chapter 1371. The Certificates issued hereunder must be sold not later than March 28, 2018 (though the closing of such Certificates may occur after such date, so long as the closing period is determined by an Authorized Official to be of reasonable duration). It is further provided, however, that notwithstanding the foregoing provisions, the Certificates shall not be delivered unless prior to their initial delivery, the Certificates have been rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long term obligations, as required by Chapter 1371. Upon execution of the Approval Certificate, Bond Counsel is authorized to complete this Ordinance to reflect such final terms. SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated Maturities - Interest Rates - Certificate Date. The Certificates are issuable in fully registered form only; shall be dated April 1, 2017 (the Certificate Date) and shall be issued in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and the Certificates shall become due and payable on March 1 in each of the years and in principal amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rates, while Outstanding, in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates (%) The Certificates shall bear interest on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date (hereinafter defined) to which interest has 62262507.4 -3- been paid or duly provided for, to Stated Maturity or prior redemption while Outstanding, at the rates per annum shown in the above schedule (calculated on the basis of a 360 -day year of twelve 30 -day months). Interest on the Certificates shall be payable semiannually on March 1 and September 1 (each, an Interest Payment Date), commencing March 1, 2018, while the Certificates are Outstanding. SECTION 3. Payment of Certificates - Paying Agent/Registrar. The principal of, premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such payment of principal of, premium, if any, and interest on the Certificates shall be without exchange or collection charges to the Holder (as hereinafter defined) of the Certificates. The selection and appointment of The Bank of New York Mellon Trust Company, N.A., Dallas, Texas, to serve as the initial Paying Agent/Registrar (the Paying Agent/Registrar) for the Certificates is hereby approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment and transfer of the Certificates, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Certificates are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. The City reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance terminating such agency. Additionally, the City agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Certificates by United States mail, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of, premium, if any, and interest on the Certificates, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable only to the registered owner of the Certificates appearing on the Security Register (the Holder or Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (hereinafter defined) for purposes of payment of interest thereon, (ii) on the date of surrender of the Certificates for purposes of receiving payment of principal thereof upon redemption of the Certificates or at the Certificates' Stated Maturity, and (iii) on any other date for any other purpose. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Certificate for purposes of receiving payment and all other purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of and premium, if any, on the Certificates shall be payable only upon 62262507.4 -4- presentation and surrender of the Certificates to the Paying Agent/Registrar at its corporate trust office. Interest on the Certificates shall be paid to the Holder whose name appears in the Security Register at the close of business on the fifteenth day of the month next preceding an Interest Payment Date for the Certificates (the Record Date) and shall be paid (i) by check sent on or prior to the appropriate date of payment by United States Mail, first-class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder's risk and expense. If the date for the payment of the principal of, premium, if any, or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Certificates was due. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4. Redemption. A. Mandatory Redemption. The Certificates stated to mature on March 1, 20 are referred to herein as the "Term Certificates". The Term Certificates are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on March 1 in each of the years as set forth below: Term Certificates Stated to Mature on March 1, 20 Principal Year Amount ($) 62262507.4 -5- *Payable at Stated Maturity. The principal amount of a Term Certificate required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Certificates of such Stated Maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. B. Optional Redemption. The Certificates having Stated Maturities on and after March 1, 20 shall be subject to redemption prior to Stated Maturity, at the option of the City, on March 1, 20 , or on any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. C. Exercise of Redemption Option. At least forty-five (45) days prior to a date set for the redemption of Certificates (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Certificates, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the City to exercise the right to redeem Certificates shall be entered in the minutes of the City Council. D. Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall select at random and by lot the Certificates to be redeemed, provided that if less than the entire principal amount of a Certificate is to be redeemed, the Paying Agent/Registrar shall treat such Certificate then subject to redemption as representing the number of Certificates Outstanding which is obtained by dividing the principal amount of such Certificate by $5,000. E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States mail, first-class postage prepaid, in the name of the City and at the City's expense, by the Paying Agent/Registrar to each Holder of a Certificate to be redeemed, in whole or in part, at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the 62262507.4 -6- redemption date, and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. This notice may also be published once in a financial publication, journal, or reporter of general circulation among securities dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). If a Certificate is subject by its terms to redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Certificate (or the principal amount thereof to be redeemed) so called for redemption shall become due and payable, and if money sufficient for the payment of such Certificates (or of the principal amount thereof to be redeemed) at the then applicable redemption price is held for the purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated in such notice, interest on the Certificates (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue and such Certificates shall not be deemed to be Outstanding in accordance with the provisions of this Ordinance. F. Transfer/Exchange of Certificates. Neither the City nor the Paying Agent/Registrar shall be required (1) to transfer or exchange any Certificate during a period beginning forty-five (45) days prior to the date fixed for redemption of the Certificates or (2) to transfer or exchange any Certificate selected for redemption, provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate which is subject to redemption in part. SECTION 5. Execution - Registration. The Certificates shall be executed on behalf of the City by its Mayor or Mayor Pro Tem under its seal reproduced or impressed thereon and attested by its City Secretary. The signature of either of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who were, at the time of the Certificate Date, the proper officers of the City shall bind the City, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Certificates to the Purchasers, all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate of registration substantially in the form provided in Section 8D, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified or registered and delivered. SECTION 6. Registration - Transfer - Exchange of Certificates - Predecessor Certificates. A Security Register relating to the registration, payment, transfer, or exchange of the Certificates shall at all times be kept and maintained by the City at the corporate trust office of the Paying Agent/Registrar, and the Paying Agent/Registrar shall obtain, record, and maintain 62262507.4 -7- in the Security Register the name and address of every owner of the Certificates, or if appropriate, the nominee thereof. Any Certificate may, in accordance with its terms and the terms hereof, be transferred or exchanged for Certificates of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Certificate at the corporate trust office of the Paying Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certificates executed on behalf of, and furnished by, the City of authorized denominations and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Certificates surrendered for exchange upon surrender of the Certificates to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the City shall execute, and the Paying Agent/Registrar shall register and deliver new Certificates executed on behalf of, and furnished by, the City to the Holder requesting the exchange. All Certificates issued upon any transfer or exchange of Certificates shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by United States registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered upon such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Certificates, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Certificates shall include any Certificate registered and delivered pursuant to Section 25 in lieu of a mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. SECTION 7. Initial Certificate. The Certificates herein authorized shall be issued initially either (i) as a single fully registered Certificate in the total principal amount of $2,500,000 with principal installments to become due and payable as provided in Section 2 and 62262507.4 -8- numbered T-1, or (ii) as one (1) fully registered Certificate for each year of Stated Maturity in the applicable principal amount, interest rate, and denomination and to be numbered consecutively from T-1 and upward (the Initial Certificate) and, in either case, the Initial Certificate shall be registered in the name of the Purchasers or the designee thereof The Initial Certificate shall be the Certificates submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the Purchasers. Any time after the delivery of the Initial Certificate to the Purchasers, the Paying Agent/Registrar, pursuant to written instructions from the Purchasers or their designee, shall cancel the Initial Certificate delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates on the unpaid principal amounts from the Certificate Date, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, to Stated Maturity, and shall be lettered "R" and numbered consecutively from one (1) upward for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the Purchasers, or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8. Forms. A. Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Certificates shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Certificates, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of Bond Counsel) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Certificate. The definitive Certificates shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Certificates as evidenced by their execution thereof, but the Initial Certificate submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. 62262507.4 -9- B. Form of Definitive Certificate. REGISTERED REGISTERED PRINCIPAL AMOUNT NO. $ United States of America State of Texas Counties of Nueces, Aransas, Kleberg, and San Patricio CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATE OF OBLIGATION, TAXABLE SERIES 2017 Certificate Date: April 1, 2017 REGISTERED OWNER: PRINCIPAL AMOUNT: Interest Rate: Stated Maturity: CUSIP No. The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Certificate Date, or from the most recent Interest Payment Date (defined below) to which interest has been paid or duly provided for until such principal sum has become due and payment thereof has been made or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of twelve 30 -day months; such interest being payable on March 1 and September 1 of each year (each, an Interest Payment Date), commencing March 1, 2018. Principal and premium, if any, of this Certificate shall be payable to the Registered Owner hereof (the Holder), upon presentation and surrender, at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Certificate (or one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date. All payments of principal of and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense. 62262507.4 -10- This Certificate is one of the series specified in its title issued in the aggregate principal amount of $2,500,000 (the Certificates) pursuant to an Ordinance adopted by the governing body of the City (the Ordinance), for the purpose of paying contractual obligations of the City to be incurred for making permanent public improvements and for other public purposes, to -wit: (1) the construction of improvements to the City's solid waste facilities, including (without limitation) paying contractual obligations to be incurred with respect to the construction of a gas collection and control system and procurement of a gas flare, (2) the purchase of materials, supplies, equipment, machinery, landscaping, land, and rights-of-way for authorized needs and purposes relating to the aforementioned facilities; and (3) the payment of professional services related to the design, construction, management and financing of the aforementioned projects, under and in strict conformity with the laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section 271.041 through 271.065, Section 363.135, as amended, Texas Health and Safety Code, Chapter 1371, as amended, Texas Government Code, and the City's Home Rule Charter. As provided in the Ordinance, the Certificates stated to mature on March 1, 20 are referred to herein as the "Term Certificates". The Term Certificates are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Certificate Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on March 1 in each of the years as set forth below: Term Certificates Stated to Mature on March 1, 20 Principal Year Amount ($) *Payable at Stated Maturity. The principal amount of a Term Certificate required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Certificates of such Stated Maturity which, at least 50 days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. The Certificates stated to mature on and after March 1, 20 may be redeemed prior to their Stated Maturities, at the option of the City, on March 1, 20, or on any date thereafter, in 62262507.4 -11- whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar) at the redemption price of par plus accrued interest to the date of redemption; provided, however, that at least thirty (30) days prior written notice shall be sent to the Holder of the Certificates to be redeemed by United States mail, first-class postage prepaid, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Certificate is subject to redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender of this Certificate to the Paying Agent/Registrar at its corporate trust office, a new Certificate or Certificates of like Stated Maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Certificate (or any portion of the principal sum hereof') shall have been duly called for redemption and notice of such redemption has been duly given, then upon such redemption date this Certificate (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and, if the money for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption is held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon from and after the redemption date on the principal amount hereof to be redeemed. If this Certificate is called for redemption, in whole or in part, the City or the Paying Agent/Registrar shall not be required to issue, transfer, or exchange this Certificate within forty-five (45) days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its redemption in part. The Certificates of this series are payable from the proceeds of an ad valorem tax levied upon all taxable property within the City, within the limitations prescribed by law, and are further payable from and secured by a lien on and pledge of the Pledged Revenues (identified and defined in the Ordinance), being a limited amount of the Net Revenues derived from the operation of the City's solid waste management system (the System), such lien on and pledge of the limited amount of Net Revenues being subordinate and inferior to the lien on and pledge of such Net Revenues securing payment of the currently outstanding Subordinate Lien Obligations and Limited Pledge Obligations and any Prior Lien Obligations, Junior Lien Obligations, Additional Subordinate Lien Obligations, or Additional Limited Pledge Obligations hereafter issued by the City. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations, Junior Lien Obligations, Additional Subordinate Lien Obligations, and Additional Limited Pledge Obligations (all as identified and defined in the Ordinance), while the Certificates are Outstanding, without limitation as to principal amount but subject to any terms, conditions or restrictions as may be applicable thereto under law or otherwise. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied and the revenues pledged for the payment of the Certificates; the terms and conditions under which the City may issue Prior Lien Obligations, Junior Lien Obligations, 62262507.4 -12- Additional Subordinate Lien Obligations, and Additional Limited Pledge Obligations; the terms and conditions relating to the transfer or exchange of the Certificates; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holder; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Certificate may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Certificate as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Certificate in order to render the same a legal, valid, and binding obligation of the City have been performed, exist, and have been done, in regular and due time, form, and manner, as required by the laws of the State of Texas and the Ordinance, and that issuance of the Certificates does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of, premium if any, and interest on the Certificates by the levy of a tax and collection of Pledged Revenues as aforestated. In case any provision in this Certificate or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 62262507.4 -13- IN WITNESS WHEREOF, the City has caused this Certificate to be duly executed under its official seal. ATTEST: City Secretary (CITY SEAL) 62262507.4 CITY OF CORPUS CHRISTI, TEXAS By Mayor [The remainder of this page intentionally left blank.] -14- C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Certificate Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS § REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this Certificate has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this (SEAL) Comptroller of Public Accounts of the State of Texas *NOTE TO PRINTER: Not to appear on printed Certificates. D. Form of Registration Certificate of Paying Agent/Registrar to Appear on Definitive Certificates Only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued under the provisions of the within -mentioned Ordinance; the Certificate or Certificates of the above -entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., Dallas, Texas, as Paying Agent/Registrar By: Authorized Signature *NOTE TO PRINTER: Print on Definitive Certificates. 62262507.4 -15- E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): (Social Security or other identifying number): the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular. Signature guaranteed: 62262507.4 [The remainder of this page intentionally left blank] -16- F. The Initial Certificate shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Certificate shall be modified as follows: (i) immediately under the name of the Bond(s) the headings "Interest Rate" and "Stated Maturity" shall both be completed "as shown below"; (ii) first two paragraphs shall read as follows: REGISTERED PRINCIPAL REGISTERED AMOUNT NO. T-1 $ United States of America State of Texas Counties of Nueces, Aransas, Kleberg, and San Patricio CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATE OF OBLIGATION, TAXABLE SERIES 2017 Certificate Date: April 1, 2017 REGISTERED OWNER: PRINCIPAL AMOUNT: Interest Rate: As Shown Below Stated Maturity: As Shown Below CUSIP No. The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above stated to mature on the first day of March in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates (%) (Information to be inserted from schedule in Section 2 hereof') (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amounts hereof from the Certificate Date, or from the most recent Interest Payment Date (defined below) to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rates of interest specified above, computed on the basis of a 360 -day year of twelve 30 -day months; such interest being payable on March 1 and September 1 of each year (each, an Interest Payment Date), commencing March 1, 2018. Principal of this Certificate shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, to Stated Maturity or prior redemption, while Outstanding, at 62262507.4 -17- the corporate trust office of The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the Paying Agent/Registrar). Interest shall be payable to the Holder of this Certificate whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the fifteenth day of the month next preceding each Interest Payment Date. All payments of principal of and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers for the Certificates, the Definitive Certificates and the Initial Certificate shall bear an appropriate legend as provided by the insurer. SECTION 9. Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Section 44 of this Ordinance have the meanings assigned to them in Section 44 of this Ordinance, and all such terms, include the plural as well as the singular; (ii) all references in this Ordinance to designated "Sections" and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words "herein", "hereof', and "hereunder" and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A. The term Additional Limited Pledge Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the City payable in part from a pledge of and lien on Pledged Revenues of the System which pledge of revenues is limited as further provided in Section 20 of this Ordinance, and (ii) any obligations hereafter issued to refund the foregoing as determined by the City Council in accordance with any applicable law. B. The term Additional Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or other evidences of indebtedness hereafter issued by the City payable wholly or in part from and equally and ratably secured by a lien on and pledge of the Net Revenues of the System, such pledge being subordinate and inferior to the lien on and pledge of the Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the limited amount of the Net Revenues securing, in part, the payment of the currently outstanding Limited Pledge Obligations (including the Certificates), or any Additional Limited Pledge Obligations hereafter issued by the City, all as further provided in Section 20 of this Ordinance, and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. 62262507.4 -18- C. The term Authorized Officials shall mean the City Manager of the City, the Assistant City Manager of the City, and the City's Director of Financial Services. D. The term Certificates shall mean the $2,500,000 "CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2017" authorized by this Ordinance. E. The term Certificate Fund shall mean the special Fund created and established by the provisions of Section 10 of this Ordinance. F. The term City shall mean the City of Corpus Christi, located in Nueces, Aransas, Kleberg, and San Patricio Counties, Texas and, where appropriate, the City Council of the City. G. The term Closing Date shall mean the date of physical delivery of the Initial Certificate in exchange for the payment of the agreed purchase price for the Certificates. H. The term Collection Date shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. I. The term Debt Service Requirements shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the City as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest at the maximum rate permitted by the terms thereof and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto. J. The term Depository shall mean an official depository bank of the City. K. The term Fiscal Year shall mean the annual financial accounting period for the System now ending on September 30th of each year; provided, however, the City Council may change such annual financial accounting period to end on another date if such change is found and determined to be necessary for accounting purposes or is required by applicable law. L. The term Government Securities, as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or 62262507.4 -19- its equivalent; and (iv) any additional securities and obligations hereafter authorized by the laws of the State of Texas as eligible for use to accomplish the discharge of obligations such as the Certificates. M. The term Gross Revenues for any period shall mean all income and revenues received by the City by virtue of its ownership and operation of the System, including, but not limited to, its rentals, fees, and other revenues resulting from the ownership of the System, including rentals received from leasing all or part of the System. However, it is expressly recognized that any such lease must comply with the requirements of the Code and existing regulations, published rulings, and court decisions. N. The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Certificate. O. The term Interest Payment Date shall mean the date semiannual interest is payable on the Certificates, being March 1 and September 1 of each year, commencing March 1, 2018, while any of the Certificates remain Outstanding. P. The term Junior Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation, or any similar obligations hereafter issued by the City that are payable, in whole or in part, from and equally and ratably secured by a lien on and pledge of the Net Revenues of the System, such pledge being junior and inferior to the lien on and pledge of the Net Revenues of the System that may be pledged to the payment of any Prior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing the payment of the currently outstanding Subordinate Lien Obligations, Limited Pledge Obligations (including the Certificates), or any Additional Subordinate Lien Obligations or Additional Limited Pledge Obligations hereafter issued by the City, all as further provided in Section 20 of this Ordinance and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a junior and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. Q. The term Limited Pledge Obligations shall mean the outstanding and unpaid obligations of the City that are payable, in part, from and secured by a pledge of and lien on the Pledged Revenues of the System and designated as follows (1) "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2009", dated July 15, 2009, in the original principal amount of $8,460,000; (2) "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Series 2010", dated July 1, 2010, in the original principal amount of $3,000,000; and (3) "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2015", dated October 1, 2015, in the original amount of $10,020,000; and 62262507.4 -20- (4) "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2016", dated December 1, 2015, in the original amount of $2,000,000; and (5) "City of Corpus Christi, Texas Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2016A", dated July 1, 2016, in the original amount of $16,430,000; and (6) Upon issuance, the Certificates. and (ii) obligations hereafter issued to refund any of the foregoing as determined by the City Council in accordance with any applicable law. R. The term Maintenance and Operating Expenses shall mean the expenses of operation and maintenance, including all salaries, labor, materials, repairs and extensions necessary to maintain and operate the System; provided, however, that only such repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical action or condition which would otherwise impair the security of any bonds or other obligations payable from and secured, in whole or in part, by a lien on the Net Revenues derived from the ownership and operation of the System shall be deducted in determining Net Revenues. S. The term Net Revenues for any period shall mean the Gross Revenues of the System less the Maintenance and Operating Expenses of the System. T. The term Ordinance shall mean this ordinance as finally passed and adopted by the City Council of the City. U. The term Outstanding when used in this Ordinance with respect to Certificates shall mean, as of the date of determination, all Certificates issued and delivered under this Ordinance, except: (1) those Certificates canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 29 of this Ordinance; and (3) those Certificates that have been mutilated, destroyed, lost, or stolen and replacement Certificates have been registered and delivered in lieu thereof as provided in Section 25 of this Ordinance. V. The term Pledged Revenues shall mean, while the Certificates remain Outstanding, an amount of Net Revenues not in excess of $1,000. The Pledged Revenues shall be deposited, allocated, and expended in accordance with Section 10 of this Ordinance. 62262507.4 -21- W. The term Pledged Revenue Amount shall mean the total amount, not to exceed $1,000 while the Certificates are Outstanding, of Net Revenues that may be transferred in whole or in part by the City in any given Fiscal Year (however, any amounts transferred prior to the final maturity date of the Certificates may not exceed the total amount of $1,000) to the Certificate Fund. X. The term Prior Lien Obligations shall mean (i) any bonds, notes, warrants, certificates of obligation or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a prior and first lien on and pledge of the Net Revenues of the System, all as further provided in Section 20 of this Ordinance, and (ii) any obligations issued to refund the foregoing that are payable from and secured by a prior and first lien on and pledge of the Net Revenues of the System as determined by the City Council in accordance with any applicable law. Y. The term Purchasers shall mean the initial purchaser or purchasers of the Certificates named in Section 26 of this Ordinance. Z. The term Stated Maturity shall mean the annual principal payments of the Certificates payable on March 1 of each year the Certificates are Outstanding as set forth in Section 2 of this Ordinance. AA. The term Subordinate Lien Obligations shall mean (i) the outstanding and unpaid obligations of the City that are payable, in whole or in part, from and equally secured by a subordinate and inferior lien on and pledge of the Net Revenues of the System and designated as follows: (1) "City of Corpus Christi, Texas Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008", dated December 15, 2008, in the original principal amount of $12,000,000. and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. BB. The term System shall mean a plant, composting process plant, incinerator, sanitary landfill, transfer station, or other works and equipment that is acquired, installed, or operated to collect, handle, store, process, recover material or energy from, or dispose of solid waste, and includes sites for those works and equipment. SECTION 10. Certificate Fund - Investments. For the purpose of paying the interest on and to provide a sinking fund for the payment, redemption, and retirement of the Certificates, there shall be and is hereby created a special fund to be designated "COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, TAXABLE SERIES 2017 INTEREST AND SINKING FUND" (the Certificate Fund), which fund shall be kept and maintained at the Depository, and money deposited in such fund shall be used for no other purpose. Authorized Officials of the City are hereby authorized and directed to make withdrawals from the Certificate Fund sufficient to pay the purchase price or the amount of principal of, premium, if any, and interest on the Certificates as the same become due and 62262507.4 -22- payable, or the purchase price thereof, and shall cause to be transferred to the Paying Agent/Registrar from money on deposit in the Certificate Fund an amount sufficient to pay the amount of principal and/or interest stated to mature on the Certificates, such transfer of funds to the Paying Agent/Registrar to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar on or before the business day next preceding each interest and principal payment date for the Certificates. The City, at its sole discretion, may deposit the Pledged Revenue Amount to the Certificate Fund. The Pledged Revenue Amount, if deposited, shall be expended annually to pay principal of and interest on the Certificates as the same become due and payable. This Pledged Revenue Amount shall be accounted for and transferred to the Paying Agent/Registrar in accordance with the provisions of the previous paragraph of this Section. Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund created and established by this Ordinance may, at the option of the City, be placed in time deposits, certificates of deposit, guaranteed investment contracts, or similar contractual agreements, as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, or be invested, as authorized by any law, including investments held in book -entry form, in securities, including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, Small Business Administration, or Federal Housing Association; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from such fund will be available at the proper time or times. All interest and income derived from deposits and investments in any fund established pursuant to the provisions of this Ordinance shall be credited to, and any losses debited to, such fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. SECTION 11. Tax Levy. To provide for the payment of the Debt Service Requirements on the Certificates being (i) the interest on the Certificates and (ii) a sinking fund for their redemption at Stated Maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied for the current year and each succeeding year thereafter while the Certificates or any interest thereon shall remain Outstanding, a sufficient tax, within the limitations prescribed by law, on each one hundred dollars valuation of taxable property in the City, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund and are thereafter pledged to the payment of the Certificates. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay such Debt 62262507.4 -23- Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness and obligations of the City. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the following manner: A. Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the City Council shall determine - (1) the amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year; (2) the amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Pledged Revenues, if any, or any other lawfully available funds to be appropriated and allocated during such year to pay such Debt Service Requirements, if any, prior to the Collection Date for the ad valorem taxes to be levied; and (3) the amount of Pledged Revenues, if any, or any other lawfully available funds appropriated and set aside for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding Fiscal Year. B. The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (1) above less the sum total of the amounts established in paragraphs (2) and (3), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 12. Pledge of Pledged Revenues. The City hereby covenants and agrees that, subject to (i) any prior lien on and pledge of the Net Revenues of the System to the payment and security of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City and (ii) the lien on and pledge of the Pledged Revenues (or such other limited amount of excess Net Revenues of the System) to the payment and security of the currently outstanding Limited Pledge Obligations, the Pledged Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates and the pledge of Pledged Revenues herein made for the payment of the Certificates shall constitute a lien on the Pledged Revenues in accordance with the terms and provisions hereof and be valid and binding without any physical delivery thereof or further act by the City. SECTION 13. Revenue Fund. The City hereby covenants and agrees that all Gross Revenues derived from the operation of the System shall be kept separate and apart from all other funds, accounts and money of the City and shall be deposited as collected into the "CITY OF CORPUS CHRISTI, TEXAS SOLID WASTE MANAGEMENT SYSTEM REVENUE 62262507.4 -24- FUND" (the Revenue Fund). All money deposited in the Revenue Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown: • First: to the payment of the reasonable and proper Maintenance and Operating Expenses of the System required by statute or ordinances authorizing the issuance of any indebtedness of the City to be a first charge on and claim against the Gross Revenues of the System; • Second: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any Prior Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance; • Third: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of any Junior Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance; • Fourth: To the payment of the amounts that must be deposited in the special funds and accounts created and established for the payment, security, and benefit of the currently outstanding Subordinate Lien Obligations or Additional Subordinate Lien Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance; and • Fifth: To the payment of the amounts that may be deposited in the special funds and accounts established for the payment of the currently outstanding Limited Pledge Obligations, including the Certificates, and any Additional Limited Pledge Obligations hereafter issued by the City in accordance with the terms and provisions of any ordinances authorizing their issuance. Any Net Revenues remaining in the System Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment, security and benefit thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law. SECTION 14. Deposits to Certificate Fund — Surplus Certificate Proceeds. The City hereby covenants and agrees to cause to be deposited in the Certificate Fund prior to a principal and Interest Payment Date for the Certificates, from the Pledged Revenues in the System Fund, after the deduction of all payments required to be made to the special funds or accounts created for the payment, security, and benefit of the (i) currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City and (ii) the currently outstanding Limited Pledge Obligations and any Additional Limited Pledge Obligations hereafter issued by the City, any amounts budgeted to be paid therefrom in such Fiscal Year. Accrued interest, if any, received from the Purchasers of the Certificates shall be deposited to the Certificate Fund and ad valorem taxes levied and collected for the benefit of the 62262507.4 -25- Certificates shall be deposited to the Certificate Fund. In addition, any surplus proceeds, including investment income therefrom, from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said fund from ad valorem taxes. SECTION 15. Security of Funds. All money on deposit in the funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of the State of Texas for the security of public funds, and money on deposit in such funds shall be used only for the purposes permitted by this Ordinance. SECTION 16. Maintenance of System - Insurance. The City covenants and agrees that while the Certificates remain Outstanding it will maintain and operate the System with all possible efficiency and maintain casualty and other insurance (including a system of self-insurance) on the properties of the System and its operations of a kind and in such amounts customarily carried by municipal corporations in the State of Texas engaged in a similar type of business and that it will faithfully and punctually perform all duties with reference to the System required by the laws of the State of Texas. All money received from losses under such insurance policies, other than public liability policies, are held for the benefit of the holders of the Certificates until and unless the proceeds are paid out in making good the loss or damage in respect of which such proceeds are received, either by replacing the property destroyed or repairing the property damaged, and adequate provision for making good such loss or damage must be made within ninety (90) days after the date of loss. The payment of premiums for all insurance policies required under the provisions hereof shall be considered Maintenance and Operating Expenses. Nothing in this Ordinance shall be construed as requiring the City to expend any funds which are derived from sources other than the operation of the System but nothing herein shall be construed as preventing the City from doing so. SECTION 17. Rates and Charges. The City hereby covenants and agrees with the Holders of the Certificates that rates and charges for solid waste collection services afforded by the System will be established and maintained to provide Gross Revenues sufficient at all times: A. to pay, together with any other lawfully available funds, all operating, maintenance, depreciation, replacement, betterment, and other costs incurred in the maintenance and operation of the System, including, but not limited to, Maintenance and Operating Expenses; B. to produce Net Revenues sufficient, together with any other lawfully available funds, to pay (i) the interest on and principal of any Prior Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof; (ii) the interest on and principal of any Junior Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof; (iii) the interest on and principal of the currently outstanding Subordinate Lien Obligations and any Additional Subordinate Lien Obligations hereafter issued by the City as the same becomes due and payable and the amounts required to be deposited in any special fund created and established for the payment, security, and benefit thereof; and (iv) the amounts that may be deposited in the special funds established 62262507.4 -26- for the payment of the Limited Pledge Obligations or any Additional Limited Pledge Obligations hereafter issued by the City; and C. to pay other legally incurred indebtedness payable from the Net Revenues of the System and/or secured by a lien on the System or the Net Revenues thereof. SECTION 18. Records and Accounts - Annual Audit. The City further covenants and agrees that so long as any of the Certificates remain Outstanding it will keep and maintain separate and complete records and accounts pertaining to the operations of the System in which complete and correct entries shall be made of all transactions relating thereto, as provided by Chapter 363, as amended, Texas Health and Safety Code, or other applicable law. The Holders of the Certificates or any duly authorized agent or agents of the Holders shall have the right to inspect the System and all properties comprising the same. The City further agrees that, following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of certified public accountants. Expenses incurred in making the annual audit of the operations of the System are to be regarded as Maintenance and Operating Expenses. SECTION 19. Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Certificate Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Certificates shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. SECTION 20. Issuance of Prior Lien Obligations - Junior Lien Obligations — Additional Subordinate Lien Obligations — Additional Limited Pledge Obligations. The City hereby expressly reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien on the Net Revenues of the System with the following priorities, without limitation as to principal amount, but subject to any terms, conditions, or restrictions applicable thereto under existing ordinances, laws, or otherwise: A. Prior Lien Obligations payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System; B. Junior Lien Obligations payable from and equally and ratably secured by a lien on and pledge of the Net Revenues that is junior and inferior to the lien on and pledge thereof 62262507.4 -27- securing the payment of any Prior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing the payment of the currently outstanding Subordinate Lien Obligations and the Certificates and any Additional Subordinate Lien Obligations or Additional Limited Pledge Obligations hereafter issued by the City; and C. Additional Subordinate Lien Obligations payable from and equally and ratably secured by a lien on and pledge of the Net Revenues that is subordinate and inferior to the lien on and pledge thereof securing the payment of any Prior Lien Obligations or Junior Lien Obligations hereafter issued by the City, but prior and superior to the lien on and pledge of the Net Revenues securing, in part, the payment of the currently outstanding Limited Pledge Obligations, the Certificates, and any Additional Limited Pledge Obligations hereafter issued by the City; and D. Additional Limited Pledge Obligations secured by a lien on and pledge of a limited amount of the Net Revenues in accordance with the provisions of the following paragraph. Prior Lien Obligations, Junior Lien Obligations, and Additional Subordinate Lien Obligations, if issued, may be payable, in whole or in part, from Net Revenues (without impairment of the obligation of contract with the holders of the currently outstanding Limited Pledge Obligations and the Certificates) upon such terms and conditions as the City Council may determine. Additional Limited Pledge Obligations, if issued and payable, in whole or in part, from Pledged Revenues (defined in the same or similar terms as provided in Section 9 of this Ordinance or in the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations), shall not in any event be construed to be payable from the Pledged Revenues authorized by this Ordinance or in the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations to be budgeted and appropriated for the payment of the Certificates or in the ordinances authorizing the issuance of the currently outstanding Limited Pledge Obligations. However, the lien on and pledge of the limited amount of Net Revenues securing, in part, the payment of the Certificates, the Limited Pledge Obligations and any Additional Limited Pledge Obligations shall be subordinate and inferior to the pledge of and lien on the Net Revenues securing the payment of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City. SECTION 21. Special Covenants. The City hereby further covenants that: A. it has the lawful power to pledge the Pledged Revenues supporting the Certificates and has lawfully exercised said powers under the laws of the State of Texas, including power existing under Chapter 363, as amended, Texas Health and Safety Code, and the Certificate of Obligation Act of 1971, as amended, Texas Local Government Code, Section 271.041 through Section 271.064, and the City's Home Rule Charter; and B. other than for the payment of the currently outstanding Subordinate Lien Obligations and the Limited Pledge Obligations, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System; 62262507.4 -28- SECTION 22. Application of the Covenants and Agreements of the Subordinate Lien Obligations, Prior Lien Obligations, or Junior Lien Obligations. It is the intention of the City Council and accordingly hereby recognized and stipulated that the provisions, agreements, and covenants contained herein bearing upon the management and operations of the System, and the administration and application of Gross Revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements, and covenants contained in the ordinances authorizing the issuance of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued by the City, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance, especially the priority of rights and benefits conferred thereby to the holders of the currently outstanding Subordinate Lien Obligations and any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations hereafter issued. It is expressly recognized that prior to the issuance of any Prior Lien Obligations, Junior Lien Obligations, or Additional Subordinate Lien Obligations, the City must comply with each of the conditions precedent contained in the ordinances authorizing the issuance of the currently outstanding Subordinate Lien Obligations, Limited Pledge Obligations, and the Certificates, as appropriate. SECTION 23. Notices to Holders - Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States mail, first-class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 24. Cancellation. All Certificates surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Certificates held by the Paying Agent/Registrar shall be destroyed as directed by the City. 62262507.4 -29- SECTION 25. Mutilated, Destroyed, Lost, and Stolen Certificates. If (1) any mutilated Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Certificate, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a new Certificate of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously Outstanding. In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay such Certificate. Upon the issuance of any new Certificate or payment in lieu thereof, under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses and charges (including attorney's fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Certificates. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Certificates. SECTION 26. Sale of the Certificates — Official Statement Approval — Approval of Purchase Contract - Use of Certificate Proceeds. The Certificates authorized by this Ordinance are hereby sold by the City to , , as the authorized representative of a group of underwriters (the Purchasers, having all the rights, benefits, and obligations of a Holder) in accordance with the provisions of a Purchase Contract, dated , 2017 (the Purchase Contract), attached hereto as Exhibit B and incorporated herein by reference as a part of this Ordinance for all purposes. The Initial Certificate shall be registered in the name of the . The pricing and terms of the sale of the Certificates are hereby found and determined to be the most advantageous reasonably obtainable by the City. Any Authorized Official is hereby authorized and directed to execute the Purchase Contract for and on behalf of the City and as the act and deed of the City Council, and in regard to the approval and execution of the Purchase Contract, the City Council hereby finds, determines and declares that the representations, warranties, and agreements of the City contained in the Purchase Contract are true and correct in all material respects and shall be honored and performed by the City. Delivery of the Certificates to the Purchasers shall occur as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of the Purchase Contract. 62262507.4 -30- Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City's prior determination that the Preliminary Official Statement was, as of its date, "deemed final" in accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Preliminary Official Statement by the Purchasers in connection with the public offering and sale of the Certificates. The final Official Statement, being a modification and amendment of the Preliminary Official Statement to reflect the terms of sale (together with such changes approved by an Authorized Official), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute the final Official Statement, dated , 2017, in the reoffering, sale and delivery of the Certificates to the public. The Mayor and/or City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of the Official Statement in final form as may be required by the Purchasers, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Official Statement authorized for distribution and use by the Purchasers. The proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Certificates. Proceeds from the sale of the Certificates shall be applied as follows: (1) Accrued interest (in the amount of $ ) received from the Purchasers shall be deposited into the Certificate Fund. The City received a net premium from the sale of the Certificates of $ which is hereby allocated by the City in the following manner: (1) $ to pay the Purchasers' compensation, (2) $ to pay the costs of issuance, and (3) $ shall be deposited in the Certificate Fund. (2) The balance of the proceeds derived from the sale of the Certificates, after making the deposits to the Certificate Fund as described in (1) above, shall be used to pay costs of issuance or deposited into the special construction account or accounts created for the projects to be constructed with the proceeds of the Certificates. This special construction account shall be established and maintained at the Depository and shall be invested in accordance with the provisions of Section 10 of this Ordinance. Interest earned on the proceeds of the Certificates pending completion of construction of the projects financed with such proceeds shall be accounted for, maintained, deposited, and expended as permitted by the provisions of Chapter 1201, as amended, Texas Government Code, or as required by any other applicable law. Thereafter, such amounts shall be expended in accordance with Section 14 of this Ordinance. SECTION 27. Taxable Obligations. The Certificates are not "state or local bonds" within the meaning of section 103(a) and (c) of the Internal Revenue Code of 1986, as amended; therefore, the interest on the Certificates is not excludable from the gross income of the holders thereof for federal income tax purposes. SECTION 28. Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Certificates pending their approval by the Attorney General, the registration 62262507.4 -3 1 - thereof by the Comptroller of Public Accounts and the delivery of the Certificates to the Purchasers. Furthermore, each Authorized Official is hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Certificates, the approval of the Attorney General and their registration by the Comptroller of Public Accounts and, together with the City's financial advisor, bond counsel, and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Certificate to the Purchasers and the initial exchange thereof for definitive Certificates. SECTION 29. Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied and the lien on and pledge of the Pledged Revenues under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Certificates or the principal amount(s) thereof at Stated Maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, and/or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case of a net defeasance, been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Certificates, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof for the Certificates. In the event of a gross defeasance of the Certificates, the City shall deliver a certificate from its financial advisor, the Paying Agent/Registrar, or another qualified third party concerning the deposit of cash and/or Government Securities to pay, when due, the principal of, redemption premium (if any), and interest due on any defeased Certificates. Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity of the Certificates, or applicable redemption date, such money was deposited and is held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. 62262507.4 -32- Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem defeased Certificates that is made in conjunction with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable, provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves the right to call the defeased Certificates for redemption; (2) gives notice of the reservation of that right to the owners of the defeased Certificates immediately following the defeasance; (3) directs that notice of the reservation be included in any redemption notices that it authorizes; and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased debt as though it was being defeased at the time of the exercise of the option to redeem the defeased Certificates, after taking the redemption into account in determining the sufficiency of the provisions made for the payment of the defeased Certificates. SECTION 30. Printed Opinion. The Purchasers' obligation to accept delivery of the Certificates is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP, San Antonio, Texas, as Bond Counsel, approving certain legal matters as to the Certificates, the opinion to be dated and delivered as of the date of initial delivery and payment for the Certificates. Printing of a true and correct copy of the opinion on the reverse side of each of the Certificates, with appropriate certificate pertaining thereto executed by facsimile signature of the City Secretary of the City is hereby approved and authorized. SECTION 31. CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Certificates shall be of no significance or effect as regards the legality thereof, and neither the City nor bond counsel are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. SECTION 32. Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 33. Ordinance a Contract, Amendments - Outstanding Certificates. The City acknowledges that the covenants and obligations of the City herein contained are a material inducement to the purchase of the Certificates. This Ordinance shall constitute a contract with the Holders from time to time, binding on the City and its successors and assigns, and it shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders holding a majority in aggregate principal amount of the Certificates then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided, however, that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and interest on the Certificates, reduce the principal amount thereof or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, the redemption price therefor, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required for consent to any such amendment, addition, or rescission. 62262507.4 -33- SECTION 34. Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Paying Agent/Registrar, and the Holders. SECTION 35. Inconsistent Provisions. All ordinances and resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters ordained herein. SECTION 36. Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 37. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 38. Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 39. Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council of the City. SECTION 40. Authorization of Paying Agent/Registrar Agreement. The City Council of the City hereby finds and determines that it is in the best interest of the City to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, registration, and transferability of the Certificates. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by reference to the provisions of this Ordinance. SECTION 41. Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 42. Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall 62262507.4 -34- most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 43. No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Certificate or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Certificate. SECTION 44. Continuing Disclosure Undertaking. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB's Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http://www.emma.msrb.org. MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2-12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each fiscal year of the City ending in or after 2017, financial information and operating data with respect to the System of the general type included in the final Official Statement authorized by Section 26 of this Ordinance, being the information described in Exhibit C hereto, and (2) if not provided as part such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit C hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall file unaudited financial statements within such period and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such statements becomes available. Under current Texas law, including, but not limited to, Chapter 103, as amended, Texas Local Government Code, the City must have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The annual financial statement, including the auditor's opinion on the statement, shall be filed in the office of the City Clerk within one hundred -eighty (180) days after the last day of the City's fiscal year. Additionally, upon the filing of this financial statement and the annual audit, these documents are subject to the Texas Open Records Act, as amended, Texas Government Code, Chapter 552. 62262507.4 -35- If the City changes its fiscal year, it will file notice thereof with the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C. Notice of Certain Events. The City shall file notice of any of the following events with respect to the Certificates to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Certificates, or other material events affecting the tax status of the Certificates (the Certificates are issued as "taxable obligations" pursuant to the Internal Revenue Code of 1986, as amended); (7) (8) (9) Modifications to rights of holders of the Certificates if material; Certificate calls, if material, and tender offers; Defeasances; (10) Release, substitution, or sale of property securing repayment of the Certificates, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 62262507.4 -36- (14) Appointment of a successor or additional Paying Agent/Registrar or the change of name of a Paying Agent/Registrar, if material. For these purposes, any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D. Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Certificates to be no longer Outstanding. The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this 62262507.4 -37- Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Certificates. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Certificates in the primary offering of the Certificates, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. E. Information Format; Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word -searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. Financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public through EMMA or filed with the SEC. SECTION 45. Book -Entry Only System. It is intended that the Certificates will initially be registered so as to participate in a securities depository system (the DTC System) with The Depository Trust Company, New York, 62262507.4 -38- New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Certificates shall be issued (following cancellation of the Initial Certificate described in Section 7) in the form of a separate single definitive Certificate. Upon issuance, the ownership of each such Certificate shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Certificates shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit D (the Representation Letter). With respect to the Certificates registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds the Certificates from time to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Certificates (an Indirect Participant). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Certificates, as shown on the Security Register, of any notice with respect to the Certificates, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of a Certificate, of any amount with respect to principal of, premium, if any, or interest on the Certificates. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the availability within a reasonable period of time through DTC of bond certificates, and the Certificates shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Certificates shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Certificates may be registered in whatever name or names the Holders of Certificates transferring or exchanging the Certificates shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with 62262507.4 -39- respect to principal of, premium, if any, and interest on such Certificate and all notices with respect to such Certificate shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 46. No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Certificate or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Certificate. SECTION 47. Further Procedures. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Certificates, the Paying Agent/Registrar Agreement, the Purchase Contract, and the Official Statement. In addition, prior to the initial delivery of the Certificates, the Authorized 0 and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance and as described in the Official Statement, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Certificates by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 48. Ancillary Bond Contracts. Though such parties may be identified, and the entry into a particular form of contract may be authorized herein, the City Council hereby delegates to each Authorized Official the authority to independently select the counterparty to any agreement with any paying agent/registrar, rating agency, securities depository, escrow agent, open market securities bidding agent, verification agent or any other contract that is determined by an Authorized Official, the City's Financial Advisor, or the City's Bond Counsel to be necessary or incidental to the issuance of the Certificates as long as each of such contracts has a value of less than the amount referenced in Section 2252.908 of the Texas Government Code (collectively, the Ancillary Bond Contracts); and, as necessary, to execute the Ancillary Bond Contracts on behalf and as the act and deed of the City. The City has not participated in the selection of any of the business entities which are counterparties to the Ancillary Bond Contracts. SECTION 49. City's Consent to Provide Information and Documentation to the Texas MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the Internal Revenue Code and which serves as a comprehensive financial information repository regarding municipal debt issuers in Texas, requires provision of written documentation regarding the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas MAC and in compliance with applicable law, the City hereby consents to and authorizes any Authorized Official, the City's Bond Counsel, and/or the City's Financial Advisor to provide to 62262507.4 -40- the Texas MAC information and documentation requested by the Texas MAC relating to the Certificates; provided, however, that no such information and documentation shall be provided prior to the Closing Date. This consent and authorization relates only to information and documentation that is a part of the public record concerning the issuance of the Certificates. SECTION 50. Effective Date. Pursuant to the provisions of Section 1201.028, as amended, Texas Government Code, this Ordinance shall be effective immediately upon adoption, notwithstanding any provision in the City's Home Rule Charter to the contrary concerning a multiple reading requirement for the adoption of ordinances. 62262507.4 [The remainder of this page intentionally left blank.] -41- PASSED AND ADOPTED on the 28th day of March, 2017. ATTEST: City Secretary APPROVED THIS 28th DAY OF MARCH, 2017: Miles Risley, City Attorney (CITY SEAL) 62262507.4 S-1 CITY OF CORPUS CHRISTI, TEXAS Mayor Pro Tem Schedule I - EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D 62262507.4 INDEX OF SCHEDULES AND EXHIBITS - Approval Certificate - Paying Agent/Registrar Agreement - Purchase Contract - Description of Annual Financial Information - DTC Letter of Representations I-1 THE STATE OF TEXAS § COUNTY OF NUECES § I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 28th day of March, 2017, authorizing the issuance of the City's Combination Tax and Limited Pledge Revenue Certificates of Obligation, Taxable Series 2017, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 28th day of March, 2017. City Secretary (CITY SEAL) 62262507.4 The foregoing ordinance was read for the first time and passed to its second reading on this the 21st day of March, 2017, by the following vote: Vacant Rudy Garza Carolyn Vaughn Paulette Guajardo Ben Molina Michael Hunter Lucy Rubio Joe McComb Greg Smith That the foregoing ordinance was read for the second time and passed finally on this the 28th day of March, 2017, by the following vote: Vacant Rudy Garza Carolyn Vaughn Paulette Guajardo Ben Molina Michael Hunter Lucy Rubio Joe McComb Greg Smith PASSED AND APPROVED, this the 28th day of March, 2017. ATTEST: Rebecca Huerta City Secretary 62262507.4 Lucy Rubio Mayor Pro Tem 62262507.4 SCHEDULE I APPROVAL CERTIFICATE SEE TAB NO. Schedule I 62262507.4 EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT SEE TAB NO. A-1 62262507.4 EXHIBIT B PURCHASE CONTRACT SEE TAB NO. B-1 EXHIBIT C DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 44 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: (1) The City's audited financial statements for the most recently concluded fiscal year or to the extent these audited financial statements are not available, the portions of the unaudited financial statements of the City appended to the Official Statement as Appendix C, but for the most recently concluded fiscal year. (2) All quantitative financial information and operating data with respect to the City of the general type included in Appendix A to the Official Statement under the headings "Debt Payable From Taxes", "General Fund Balances", "Ad Valorem Taxes", and "The Tax Increment Financing Act". Accounting Principles The accounting principles referred to in such Section are generally accepted accounting principles for governmental units as prescribed by the Government Accounting Standards Board from time to time. 62262507.4 C-1 62262507.4 EXHIBIT D DTC LETTER OF REPRESENTATIONS SEE TAB NO. D-1 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 8, 2017 TO: Margie C. Rose, City Manager THRU: Sylvia Carrillo, Assistant City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP@cctexas.com (361) 826-3227 Authorization for the Issuance of Refunding Bonds with the Texas Water Development Board (TWDB) CAPTION: Ordinance authorizing the issuance of "City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2017" in an amount not to exceed $51,300,000; making provisions for the payment and security thereof by a junior and inferior lien on and pledge of the net revenues of the City's Utility System on a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the form, terms, conditions, and resolving other matters incident and related to the issuance, sale, and delivery of the bonds; including the approval of an application to the Texas Water Development Board; authorizing the execution of a paying agent/registrar agreement, and an escrow agreement; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; complying with the regulations promulgated by the Texas Water Development Board; delegating the authority of certain members of the City staff to execute certain documents relating to the sale of the bonds; and providing an effective date. PURPOSE: The City of Corpus Christi is interested in obtaining a loan from the Texas Water Development Loan through its Drinking Water State Revolving Fund in an amount not to exceed $51,300,000 for the purpose of refunding the City of Corpus Christi, Texas Utility System Variable Rate Junior Lien Revenue Improvement Bonds, Series 2015B (the "Refunded Bonds"). BACKGROUND AND FINDINGS: On June 17, 2014, the City Council authorized the issuance of up to $155,000,000 of City of Corpus Christi, Texas, Utility System Junior Lien Revenue Bonds for the construction of Mary Rhodes Pipeline, Phase II. Authorization was given to issue both fixed rate bonds and variable rate bonds in an effort to provide the City with the most flexibility at that time, legally available. The City was considering leasing some of the water flowing through the pipeline to industrial customers - an occurrence which would require that bonds sold to fund a proportionate amount of the pipeline's cost would no longer be eligible for tax-exempt treatment (for gross income calculation under federal tax law) and would have to be converted to taxable debt. To accommodate this possibility, the City issued the Refunded Bonds (which reflected the rough proportionality of approximately 1/3 of the pipeline's cost — which equated to the maximum amount of pipeline capacity that the City believed could have been sold to industrial customers) as variable rate obligations in an initial term -rate, interest -mode that expires on July 15, 2017 (but which the City can early terminate on or after January 15, 2017). Since the City no longer plans to lease water to industrial customers, the Refunded Bonds must be refunded or remarketed into a new interest rate period not later than July 15, 2017. Since the City preserved the ability at the time the Refunded Bonds were originally issued to seek financial assistance of the type now contemplated, the City now wishes to pursue this opportunity to refund the Refunded Bonds with long- term, fixed and subsidized interest rate bonds through a sale of refunding bonds to the Texas Water Development Board. The Drinking Water State Revolving fund is a financial assistance program administered by the Texas Water Development Board and accessed by local governments across the State of Texas. Texas Water Development Board financings provide subsidized interest rates that are lower than those obtainable by the City directly in the capital markets. Receipt of these subsidized interest rates will provide the City with significantly lower borrowing costs for the remaining life of its refunding bonds (new bonds) when compared to the remaining life of the Refunded Bonds (old bonds). The interest rate charged by the Texas Water Development Board is 1.25% below the municipal market index called MMD (Municipal Market Data), and is anticipated to be approximately 1.77%. This rate is lower than what the City could obtain using its own ratings by accessing the capital markets in a traditional bond sale. It is anticipated that the City will save approximately $8.2 million over the life of the 29 -year loan. On December 20, 2016, the City Council authorized the City staff to submit an application to the Texas Water Development Board for financial assistance (in the form of the Texas Water Development Board's commitment to purchase the City's refunding bonds at subsidized rates of interest) in an amount not to exceed $51,300,000. The Texas Water Development Board discussed the City's application at its February 23, 2017 monthly meeting and unanimously accepted the City's application. This agenda item is the next step in the process and is the authorization for the issuance of the refunding bonds. ALTERNATIVES: Do not refund. OTHER CONSIDERATIONS: Not applicable FINANCIAL IMPACT: ❑ Not Applicable ❑ Operating Expense X Revenue X CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budget - - - - Encumbered/Expended amount of (date) - - - - This item - $ 51,300,000 - $ 51,300,000 BALANCE - $ 51,300,000 - $ 51,300,000 FUND(S): Water CIP Fund COMMENTS: Not applicable RECOMMENDATION: Staff recommends approval of the ordinance as presented. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: • Financial Services • Bond Counsel • City Attorney's Office LIST OF SUPPORTING DOCUMENTS: Ordinance ORDINANCE NO. DRAFT 3/9/17 AUTHORIZING THE ISSUANCE OF "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017" IN AN AMOUNT NOT TO EXCEED $51,300,000; MAKING PROVISIONS FOR THE PAYMENT AND SECURITY THEREOF BY A JUNIOR AND INFERIOR LIEN ON AND PLEDGE OF THE NET REVENUES OF THE CITY'S UTILITY SYSTEM ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING UTILITY SYSTEM REVENUE OBLIGATIONS; STIPULATING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF ADDITIONAL REVENUE BONDS ON A PARITY THEREWITH; PRESCRIBING THE FORM, TERMS, CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE BONDS; INCLUDING THE APPROVAL OF AN APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD; AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT, AND AN ESCROW AGREEMENT; COMPLYING WITH THE REQUIREMENTS IMPOSED BY THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; COMPLYING WITH THE REGULATIONS PROMULGATED BY THE TEXAS WATER DEVELOPMENT BOARD; DELEGATING THE AUTHORITY TO CERTAIN MEMBERS OF THE CITY STAFF TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE BONDS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council (the City Council) of the City of Corpus Christi, Texas (the City) has heretofore issued, and there are currently Outstanding, revenue bonds (the Previously Issued Priority Bonds) secured by a first and prior lien on and pledge of the Net Revenues (as hereinafter defined) of the City's combined utility systems (as further described and defined herein, the System); and WHEREAS, in the City ordinances authorizing the issuance of the Previously Issued Priority Bonds, the City reserved the right to issue revenue bonds on parity with the Priority Bonds (as hereinafter defined); and WHEREAS, the City Council has heretofore issued, and there are currently outstanding revenue bonds (the Previously Issued Junior Lien Obligations) secured by a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds; and 27732317.8 WHEREAS, in the City ordinances authorizing the issuance of the Previously Issued Junior Lien Obligations, the City reserved the right to issue revenue bonds on a parity with the Junior Lien Obligations (as hereinafter defined) from time to time outstanding; and WHEREAS, the City Council has heretofore entered into a certain Federal Contract (as hereinafter defined) supported by a lien on and pledge of the Net Revenues of the System inferior to the lien thereon and pledge thereof securing the Priority Bonds, the Junior Lien Obligations, and the Previously Issued Subordinate Lien Obligations (such Federal Contract, the Previously Issued Inferior Lien Obligations); and WHEREAS, the City Council has determined for the purpose of improving the credit quality of its Junior Lien Obligations, which has become its primary lien for issuing System debt, that it will no longer issue obligations secured by a first and prior lien on and pledge of the Net Revenues of the System referred to herein as "Priority Bonds", on parity with the lien thereon and pledge thereof securing the Previously Issued Priority Bonds, for new money purposes and, at such time as no Priority Bonds remain outstanding, all System revenue obligations now subordinate and inferior to the Priority Bonds in priority of lien on and pledge of Net Revenues shall be elevated in kind in priority of lien and payment so that when there are no longer any Priority Bonds outstanding, the Junior Lien Obligations (defined herein) will enjoy a first and prior lien on and pledge of the Net Revenues of the System; and WHEREAS, there are currently outstanding obligations in the aggregate principal amount of at least $49,585,000, being the obligations set forth on Schedule I hereto which is incorporated by reference for all purposes to this ordinance (the Refunded Obligations); and WHEREAS, pursuant to the provisions of Chapter 1207, as amended, Texas Government Code, as amended (Chapter 1207), the City Council is authorized to issue revenue refunding bonds and deposit the proceeds of sale under an escrow agreement to provide for the payment of the Refunded Obligations, and such deposit, when made in accordance with the Act, shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and WHEREAS, Chapter 1207 requires that the deposit of the proceeds from the sale of the revenue refunding bonds be deposited directly with any designated escrow agent for the Refunded Obligations that is not the depository bank of the City; and WHEREAS, the Texas Water Development Board (the Purchaser) has agreed to purchase the revenue refunding bonds herein authorized thereby making a loan to the City at an interest rate that is substantially below the current market rate for similar forms of indebtedness; and WHEREAS, The Bank of New York Mellon Trust Company, N.A., Dallas, Texas, which is not a depository bank of the City, is appointed and will serve as the Paying Agent/Registrar (hereinafter defined) and Escrow Agent (hereinafter defined) for the revenue refunding bonds; and WHEREAS, the City Council also hereby finds and determines that the Refunded Obligations are scheduled to mature or are subject to being redeemed, not more than twenty (20) 27732317.8 -2- years from the date of the Refunding Bonds herein authorized and such refunding will convert currently outstanding variable rate debt into long term fixed rate revenue refunding bonds and, therefore (and as permitted by the provisions of Section 1207.008, as amended, Texas Government Code), it is not practicable to calculate the savings from this conversion from variable rate to fixed rate debt; and WHEREAS, the revenue refunding bonds hereinafter authorized are to be issued and delivered pursuant to the laws of the State of Texas, including the Act (defined herein), and the terms of this Ordinance (as hereinafter defined), for the purposes set forth in this Ordinance; and now therefore, and WHEREAS, the City Council hereby finds and determines that the issuance of the revenue refunding bonds authorized herein and the adoption of this Ordinance is in the best interests of the citizens of the City; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: Authorization — Designation — Principal Amount — Purpose. Revenue refunding bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of THOUSAND AND NO/100 DOLLARS ($ ), to be designated and bear the title of CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017 (the Bonds), pursuant to this ordinance adopted by the City Council (the Ordinance) for the purpose of (i) discharging and making final payment of the Refunded Obligations, and (ii) paying the costs of issuance relating thereto. The Bonds shall be payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of any Subordinate Lien Obligations and any Inferior Lien Obligations. The Bonds are authorized to be issued pursuant to the authority conferred by and in conformity with the laws of the State of Texas, including, particularly, Chapter 1207, as amended, Texas Government Code (the Act). SECTION 2: Fully Registered Obligations — Authorized Denominations — Stated Maturities — Interest Rates — Dated Date. The Bonds are issuable in fully registered form only; shall be dated March 15, 2017 (the Dated Date); shall be in denominations of $5,000 or any integral multiple thereof, shall be lettered "R-" and numbered consecutively from One (1) upward and principal shall become due and payable on July 15 in each of the years and in principal amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the Closing Date, or the most recent Interest Payment Date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the rates per annum in accordance with the following schedule: Years of Stated Maturity Principal Interest (July 15) Amounts ($) Rates (%) 2018 27732317.8 -3- Years of Stated Maturity Principal Interest (July 15) Amounts ($) Rates (%) 2019 2020 2021 2022 2023 2024 2025 2026 SECTION 3: Payment of Bonds — Interest Payments — Paying Agent/Registrar. The principal of, premium, if any, and interest on the Bonds, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such payment of principal of and interest on the Bonds shall be without exchange or collection charges to the Holder (as hereinafter defined) of the Bonds. The Bonds shall bear interest on the unpaid principal amount thereof at the per annum rates shown above in Section 2, computed on the basis of a 360 -day year of twelve 30 -day months, and interest thereon shall be payable semiannually on January 15 and July 15 of each year (each, an Interest Payment Date), commencing July 15, 2017, while the Bonds are Outstanding. Interest on each Bond issued and delivered to a Holder shall accrue from the Closing Date (anticipated to occur on or about , 2017) or from the latest Interest Payment Date that interest on such Bond (or its Predecessor Bond) has been paid that precedes the registration date appearing on such Bond in the "Registration Certificate of Paying Agent/Registrar" (Section 8D hereof), unless the registration date appearing thereon is an Interest Payment Date for which interest is being paid, in which case interest on such Bond shall accrue from the registration date appearing thereon and provided further that with respect to the initial payment of interest on a Bond. The selection and appointment of The Bank of New York Mellon Trust Company, N.A., Dallas, Texas, to serve as the initial Paying Agent/Registrar (the Paying Agent/Registrar) for the Bonds is hereby approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment, and transfer of the Bonds, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. 27732317.8 -4- The City reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance terminating such agency. Additionally, the City agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Bonds by United States mail, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Both principal of, premium, if any, and interest on the Bonds, due and payable by reason of Stated Maturity, redemption or otherwise, shall be payable only to the registered owner of the Bonds appearing on the Security Register (the Holder or Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (defined herein) for purposes of payment of interest thereon and (ii) on the date of surrender of the Bonds for purposes of receiving payment of principal thereof at the Bonds' Stated Maturity or upon prior redemption of the Bonds. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Bond for purposes of receiving payment and all other purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of, and premium, if any, on the Bonds shall be payable only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its corporate trust office. Interest on the Bonds shall be paid to the Holder whose name appears in the Security Register at the close of business on the last business day of the month next preceding an Interest Payment Date for the Bonds (the Record Date) and shall be paid (i) by check sent by United States mail, first-class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder's risk and expense. While the Bonds are held by the Purchaser, payment of principal of, premium, if any, and interest on the Bonds shall be made by federal funds wire transfer, at no cost to the Purchaser, to an account at a financial institution located in the United States designated by the Purchaser. If the date for the payment of the principal of, premium, if any, or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Bonds was due. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. 27732317.8 -5- SECTION 4: Redemption. A. Optional Redemption. The Bonds having Stated Maturities on and after July 15, 2028 shall be subject to redemption prior to Stated Maturity, in inverse order of Stated Maturity, at the option of the City, on July 15, 2027, or on any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. B. Exercise of Redemption Option. At least forty-five (45) days prior to a date set for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to exercise the right or of the requirement, as applicable, to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the City Council. C. Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall select at random and by lot the Bonds to be redeemed, provided that if less than the entire principal amount of a Bond is to be redeemed, the Paying Agent/Registrar shall treat such Bond then subject to redemption as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bond by $5,000. D. Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first-class postage prepaid, in the name of the City and at the City's expense, by the Paying Agent/Registrar to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. This notice may also be published once in a financial publication, journal, or reporter of general circulation among securities dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Bond (or the principal amount thereof to be redeemed) 27732317.8 -6- so called for redemption shall become due and payable, and if money sufficient for the payment of such Bonds (or of the principal amount thereof to be redeemed) at the then applicable redemption price is held for the purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated in such notice, interest on said Bonds (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue, and such Bonds shall not be deemed to be Outstanding in accordance with the provisions of this Ordinance. E. Transfer/Exchange. Neither the City nor the Paying Agent/Registrar shall be required (i) to transfer or exchange any Bond during a period beginning forty-five (45) days prior to the date fixed for redemption of the Bonds or (ii) to transfer or exchange any Bond selected for redemption, provided; however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond which is subject to redemption in part. SECTION 5: Execution — Registration. The Bonds shall be executed on behalf of the City by its Mayor or Mayor Pro Tem, its seal reproduced or impressed thereon, and attested by the City Secretary. The signature of either officer on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who were, at the time of the Dated Date, the proper officers of the City shall bind the City, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Bonds to the Purchaser, all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Holder of a Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature for the Initial Bond only, or a certificate of registration substantially in the form provided in Section 8D for Bonds other than the Initial Bond, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified or registered and delivered. SECTION 6: Registration — Transfer — Exchange of Bonds — Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of every owner of the Bonds, or, if appropriate, the nominee thereof. Any Bond may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Bond at the corporate trust office of the Paying Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of the same series and of authorized denomination and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer. 27732317.8 -7- At the option of the Holder, Bonds may be exchanged for other Bonds of the same series and of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange upon surrender of the Bonds to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute, and the Paying Agent/Registrar shall register and deliver, the Bonds, to the Holder requesting the exchange. All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered upon such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any fee, tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Bonds, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Bonds shall include any Bond registered and delivered pursuant to Section 27 in lieu of a mutilated, lost, destroyed, or stolen Bond which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. SECTION 7: Initial Bond. The Bonds herein authorized shall be issued initially either (i) as a single fully -registered Bond in the total principal amount of $ with principal installments to become due and payable as provided in Section 2 and numbered T-1, or (ii) as one (1) fully -registered Bond for each year of Stated Maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (the Initial Bond) and, in either case, the Initial Bond shall be registered in the name of the Purchaser or the designee thereof. The Initial Bond shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the Purchaser. Any time after the delivery of the Initial Bond, the Paying Agent/Registrar shall cancel the Initial Bond delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the Purchaser, or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8: Forms. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of Paying Agent/Registrar, and the form of 27732317.8 -8- Assignment to be printed on each of the Bonds shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Bonds, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of Bond Counsel (hereinafter referenced)) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Bonds as evidenced by their execution thereof. Any portion of the text of any Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Bonds as evidenced by their execution thereof, but the Initial Bond submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. 27732317.8 [The remainder of this page intentionally left blank] -9- B. Form of Definitive Bond. REGISTERED REGISTERED PRINCIPAL AMOUNT NO. $ United States of America State of Texas Counties of Nueces, Aransas, Kleberg, and San Patricio CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017 Dated Date: March 15, 2017 REGISTERED OWNER: Interest Rate: Stated Maturity: CUSIP NO: PRINCIPAL AMOUNT: DOLLARS The City of Corpus Christi, Texas (the City), a body corporate and a municipal corporation located in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior redemption), and to pay interest on the unpaid Principal Amount hereof from the Closing Date (anticipated to occur on or about , 2017) or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of 30 -day months; such interest being payable on January 15 and July 15 of each year (each, an Interest Payment Date), commencing July 15, 2017. Principal and premium, if any, of the Bond shall be payable to the Registered Owner hereof (the Holder) upon presentation and surrender, at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the last business day of the month next preceding each Interest Payment Date. All payments of principal of, premium, if any, and interest on this Bond shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on the appropriate date of payment by United States Mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense. While the Bonds are held by the Purchaser, payment of principal of, premium, if any, and 27732317.8 -10- interest on the Bonds shall be made by federal funds wire transfer, at no cost to the Purchaser, to an account at a financial institution located in the United States designated by the Purchaser. This Bond is one of the series specified in its title issued in the aggregate principal amount of $ (the Bonds) pursuant to an ordinance adopted by the governing body of the City (the Ordinance), for the purpose of (i) discharging and making final payment of the Refunded Obligations, and (ii) paying the costs of issuance relating thereto, all in conformity with the laws of the State of Texas, particularly the City's Home Rule Charter and the Act, and the Ordinance. The Bonds shall be payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of any Subordinate Lien Obligations and any Inferior Lien Obligations. The Bonds stated to mature on and after July 15, 2028 may be redeemed prior to their Stated Maturities, in inverse order of Stated Maturity, at the option of the City, on July 15, 2027 or on any date thereafter, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar) at the redemption price of par, together with accrued interest to the date of redemption, and upon thirty (30) days prior written notice being given by United States mail, first-class postage prepaid, to Holders of the Bonds to be redeemed, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Bond is subject to redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying Agent/Registrar at its corporate trust office, a new Bond or Bonds of like Stated Maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Bond (or any portion of the principal sum hereof') shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and, if money for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption is held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon from and after the redemption date on the principal amount hereof to be redeemed. In the event of a partial redemption of the principal amount of this Bond, payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of this Bond to the corporate trust office of the Paying Agent/Registrar and, there shall be issued to the registered owner hereof, without charge, a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Bond is called for redemption, in whole or in part, the City or the Paying Agent/Registrar shall not be required to issue, transfer, or exchange this Bond within forty-five (45) days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its redemption in part. 27732317.8 -11- The Bonds of this series are special obligations of the City, issued as Junior Lien Obligations, payable from and equally and ratably secured by a lien on and pledge of the Junior Lien Pledged Revenues, being (primarily) a lien on and pledge of the Net Revenues derived from the operation of the City's utility system (as further described in the Ordinance, the System), that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of any Subordinate Lien Obligations and any Inferior Lien Obligations. In the Ordinance, the City reserves and retains the right to issue Additional Priority Bonds, Additional Junior Lien Obligations, Subordinate Lien Obligations, and Additional Inferior Lien Obligations without limitation as to principal amount but subject to any terms, conditions, or restrictions set forth in the Ordinance or as may be applicable thereto under law or otherwise. The Bonds do not constitute a legal or equitable pledge, charge, lien, or encumbrance upon any property of the City or System, except with respect to the Junior Lien Pledged Revenues. The Holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for definitions of terms; the description and nature of the Junior Lien Pledged Revenues pledged for the payment of the Bonds; the terms and conditions under which the City may issue Additional Priority Bonds, Additional Junior Lien Obligations, Subordinate Lien Obligations, and Additional Inferior Lien Obligations; the terms and conditions relating to the transfer or exchange of the Bonds; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Bond as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity, or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for 27732317.8 -12- the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Bond in order to render the same a legal, valid, and binding special obligation of the City have been performed, exist, and have been done, in regular and due time, form, and manner, as required by law, and that issuance of the Bonds does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by a pledge of and lien on the Junior Lien Pledged Revenues. In case any provision in this Bond or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 27732317.8 [The remainder of this page intentionally left blank] -13- IN WITNESS WHEREOF, this Bond has been signed with the imprinted or lithographed facsimile signature of the Mayor of the City, attested by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of the City has been duly affixed to, printed, lithographed or impressed on this Bond. CITY OF CORPUS CHRISTI, TEXAS ATTEST: City Secretary (SEAL) 27732317.8 Mayor [The remainder of this page intentionally left blank] -14- C. Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Bond Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS THE STATE OF TEXAS § § § § REGISTER NO. I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) * Bond to Printer: Not to appear on printed Bonds D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds Only. CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued under the provisions of the within -mentioned Ordinance; the Bond or Bonds of the above -entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: * Bond to Printer: to appear on printed Bonds 27732317.8 -15- THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., Dallas, Texas, as Paying Agent/Registrar By: Authorized Signature E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): (Social Security or other identifying number): the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular. Signature guaranteed: 27732317.8 [The remainder of this page intentionally left blank.] -16- F. Form of Initial Bond. The Initial Bond shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Bond shall be modified as follows: (1) immediately under the name of the Initial Bond the headings "Interest Rate" and "Stated Maturity" shall both be completed "as shown below"; (2) the first two paragraphs shall read as follows: REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Corpus Christi, Texas (the City), a body corporate and a municipal corporation located in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above on the fifteenth day of July in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates (%) (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amount hereof from the Closing Date (anticipated to occur on or about , 2017), or from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of 30 - day months; such interest being payable on January 15 and July 15 of each year (each, an Interest Payment Date), commencing July 15, 2017. Principal of this Bond shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, at the corporate trust office of The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the Paying Agent/Registrar). Interest shall be payable to the Holder of this Bond whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the last business day of the month next preceding each Interest Payment Date. All payments of principal of and interest on this Bond shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. While the Bonds are held by the Purchaser, payment of principal of, premium, if any, and interest on the Bonds shall be made by 27732317.8 -17- federal funds wire transfer, at no cost to the Purchaser, to an account at a financial institution located in the United States designated by the Purchaser. G. Insurance Legend. If bond insurance is obtained by the Purchaser or the City for the Bonds, the definitive Bonds and the Initial Bond shall bear an appropriate legend as provided by the insurer. SECTION 9: Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections 33 and 47 of this Ordinance have the meanings assigned to them in such Sections, and all such terms include the plural as well as the singular; (ii) all references in this Ordinance to designated "Sections" and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words "herein", "hereof', and "hereunder" and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A. The term Accountant shall mean a nationally recognized independent certified public accountant, or an independent firm of certified public accountants. B. The term Additional Inferior Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Net Revenues, which pledge is subordinate and inferior to the lien on and pledge of the Net Revenues that is or will be pledged to the payment of the Priority Bonds, that is included in Junior Lien Pledged Revenues, that is or will be pledged to the payment of any Subordinate Lien Obligations, and that is on parity with the lien on and pledge of the Net Revenues securing the payment of the then -Outstanding Inferior Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by such subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. C. The term Additional Junior Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Junior Lien Pledged Revenues, such pledge to include a pledge of Net Revenues that is junior and inferior to the lien on and pledge of the Net Revenues that are or will be pledged to the payment of the Priority Bonds now Outstanding or hereafter issued by the City but senior and superior to the lien thereon and pledge thereof that is or will be pledged to the payment of any Subordinate Lien Obligations and the Inferior Lien Obligations now Outstanding or hereafter issued by the City, and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, as determined by the City Council in accordance with applicable law. D. The term Additional Priority Bonds shall mean any obligations hereafter issued to refund any of the Previously Issued Priority Bonds if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues as 27732317.8 -18- determined by the City Council in accordance with applicable law and under the terms and conditions provided in Section 19 of this Ordinance. E. The term Authorized Official shall mean the City Manager of the City, the Assistant City Manager of the City, and the City's Director of Financial Services (which shall include any person serving in any of the foregoing capacities on an interim or non -permanent basis). F. The term Average Annual Debt Service Requirements shall mean that average amount which, at the time of computation, will be required to pay the Debt Service Requirements of obligations when due and derived by dividing the total of such Debt Service Requirements by the number of years then remaining before final Stated Maturity. The calculation of Average Annual Debt Service Requirements shall be net of (1) capitalized interest from bond proceeds and (2) the receipt or anticipated receipt of a refundable tax credit or similar payment relating to a series of Junior Lien Obligations irrevocably designated as refundable tax credit bonds, which payment shall be treated as one offset to regularly scheduled debt service of the series of Junior Lien Obligations to which it relates. G. The term Bonds shall mean the $ "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017", dated March 15, 2017, authorized by this Ordinance. H. The term Bond Fund shall mean the special Fund or account created and established by the provisions of Section 13 of this Ordinance. I. The term Capital Additions shall mean a reservoir or other water storage facilities, a water or wastewater treatment plant or an interest therein, an electric generation facility and/or distribution system or an interest therein, a gas distribution system or an interest therein and associated transmission facilities with respect to each and any combination thereof, which shall become a part of the System. J. The term Capital Improvements shall mean any capital extensions, improvements and betterments to the System other than Capital Additions. K. The term City shall mean the City of Corpus Christi, Texas and, where appropriate, the City Council of the City. L. The term Closing Date shall mean the date of physical delivery of the Initial Bonds in exchange for the payment in full by the Purchaser. M. The term Credit Agreement shall mean a loan agreement, revolving credit agreement, agreement establishing a line of credit, letter of credit, reimbursement agreement, insurance contract, commitments to purchase Debt, purchase or sale agreements, interest rate swap agreements, or commitments or other contracts or agreements authorized, recognized, and approved by the City as a Credit Agreement in connection with the authorization, issuance, security, or payment of any obligation authorized by Chapter 1371, and which includes any Credit Facility. 27732317.8 -19- N. The term Credit Facility shall mean (i) a policy of insurance or a surety bond, issued by an issuer of policies of insurance insuring the timely payment of debt service on governmental obligations, or (ii) a letter or line of credit issued by any financial institution. O. The term Credit Provider shall mean any bank, financial institution, insurance company, surety bond provider, or other institution which provides, executes, issues, or otherwise is a party to or provider of a Credit Agreement or Credit Facility. P. The term Debt shall mean (1) all indebtedness payable from Net Revenues and/or Junior Lien Pledged Revenues incurred or assumed by the City for borrowed money (including indebtedness payable from Net Revenues and/or Junior Lien Pledged Revenues arising under Credit Agreements) and all other financing obligations of the System payable from Net Revenues and/or Junior Lien Pledged Revenues that, in accordance with generally accepted accounting principles, are shown on the liability side of a balance sheet; and (2) all other indebtedness payable from Junior Lien Pledged Revenues and/or Net Revenues (other than indebtedness otherwise treated as Debt hereunder) for borrowed money or for the acquisition, construction, or improvement of property or capitalized lease obligations pertaining to the System that is guaranteed, directly or indirectly, in any manner by the City, or that is in effect guaranteed, directly or indirectly, by the City through an agreement, contingent or otherwise, to purchase any such indebtedness or to advance or supply funds for the payment or purchase of any such indebtedness or to purchase property or services primarily for the purpose of enabling the debtor or seller to make payment of such indebtedness, or to assure the owner of the indebtedness against loss, or to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether or not such property is delivered or such services are rendered), or otherwise. For the purpose of determining Debt, there shall be excluded any particular Debt if, upon or prior to the maturity thereof, there shall have been deposited with the proper depository (a) in trust the necessary funds (or investments that will provide sufficient funds, if permitted by the instrument creating such Debt) for the payment, redemption, or satisfaction of such Debt or (b) evidence of such Debt deposited for cancellation; and thereafter it shall not be considered Debt. No item shall be considered Debt unless such item constitutes indebtedness under generally accepted accounting principles applied on a basis consistent with the financial statements of the System in prior Fiscal Years. Q. The term Debt Service Requirements shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the City as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest calculated by assuming (i) that the interest rate for every 12 -month period on such bonds is equal to the rate of interest reported in the most recently published edition of The Bond Buyer (or its successor) at the time of calculation as the "Revenue Bond Index" or, if such Revenue 27732317.8 -20- Bond Index is no longer being maintained by The Bond Buyer (or its successor) at the time of calculation, such interest rate shall be assumed to be 80% of the rate of interest then being paid on United States Treasury obligations of like maturity and (ii) that, in the case of bonds not subject to fixed scheduled mandatory sinking fund redemptions, that the principal of such bonds is amortized such that annual debt service is substantially level over the remaining stated life of such bonds or in the manner permitted under Section 1371.057(c), as amended, Texas Government Code as the same relates to interim or non—permanent indebtedness, and in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity according to a fixed schedule, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto (in each case notwithstanding any contingent obligation to redeem bonds more rapidly). For the term of any Credit Agreement in the form of an interest rate hedge agreement entered into in connection with any such obligations, Debt Service Requirements shall be computed by netting the amounts payable to the City under such hedge agreement from the amounts payable by the City under such hedge agreement and such obligations. R. The term Depository shall mean an official depository bank of the City. S. The term Engineer shall mean an individual, firm, or corporation engaged in the engineering profession, being a registered professional engineer under the laws of the State of Texas, having specific experience with respect to a combined municipal utility system similar to the System and such individual, firm, or corporation may be employed by, or may be an employee of, the City. T. The term Federal Contract shall mean Contract No. 6-07-01-X0675 entered into by an among the United States of America, the City and the Nueces River Authority, dated June 30, 1976, and amended on June 16, 1980, with respect to the Nueces River Reclamation Project, pursuant to which the City has pledged the revenues of its waterworks system in support of the payment obligations of the City under the Federal Contract, subordinate and inferior to the pledge of and lien on the Net Revenues securing the payment of the Priority Bonds, the lien thereon and pledge thereof securing the payment of the Junior Lien Obligations, as a result of such Net Revenues being included as Junior Lien Pledged Revenues, and the lien thereon and pledge thereof securing the payment of the Subordinate Lien Obligations. U. The term Fiscal Year shall mean the twelve month accounting period used by the City in connection with the operation of the System which may be any twelve consecutive month period established by the City, presently being that period commencing on October 1 of each year and ending on the following September 30. V. The term Government Securities as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America, and (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. When the Previously Issued Junior Lien Obligations issued on or before August 25, 2016, are no longer 27732317.8 -21- Outstanding, the term Government Securities, as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; or (iv) any additional securities and obligations hereafter authorized by the laws of the State of Texas as eligible for use to accomplish the discharge of obligations such as the Bonds. W. The term Gross Revenues shall mean all revenues, income, and receipts derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created or confirmed by this Ordinance or maintained by the City in connection with the System, other than those amounts subject to payment to the United States of America as rebate pursuant to section 148 of the Code. X. The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Bond. Y. The term Inferior Lien Obligations shall mean (i) the Previously Issued Inferior Lien Obligations, (ii) any Additional Inferior Lien Obligations, and (iii) any obligations issued to refund the foregoing payable from and equally and ratably secured by a subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with any applicable law. Z. The term Interest Payment Date shall mean the date semiannual interest is payable on the Bonds, being January 15 and July 15 of each year, commencing July 15, 2017, while any of the Bonds remain Outstanding. AA. The term Junior Lien Obligations shall mean (i) the Previously Issued Junior Lien Obligations, (ii) any Additional Junior Lien Obligations, and (iii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of any Subordinate Lien Obligations and any Inferior Lien Obligations, as determined by the City Council in accordance with applicable law. BB. The term Junior Lien Pledged Revenues means (1) the Net Revenues that remain after payment of all amounts, and funding of all funds, relating to any Priority Bonds, plus (2) any additional revenues, income, receipts, or other resources, including, without limitation, any grants, donations, or income received or to be received from the United States Government, or 27732317.8 -22- any other public or private source, whether pursuant to an agreement or otherwise, which hereafter are pledged by the City to the payment of the Bonds, and at the City's discretion, any Additional Junior Lien Obligations, and excluding those revenues excluded from Gross Revenues. CC. The term Net Revenues shall mean all Gross Revenues less Operating Expenses. DD. The term Operating Expenses shall mean the expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs, and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City, reasonably and fairly exercised by the passage of appropriate ordinances, are necessary to render adequate service, or such as might be necessary to meet some physical accident or condition which would otherwise impair any Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, Inferior Lien Obligations, or other Debt of the System. Operating Expenses shall include the purchase of water, sewer and gas services as received from other entities and the expenses related thereto, and, to the extent permitted by a change in law (and receipt of an opinion as to legality from a firm of nationally recognized bond counsel), Operating Expenses may include payments made on or in respect of obtaining and maintaining any Credit Facility. Operating Expenses shall never include any allowance for depreciation, property retirement, depletion, obsolescence, and other items not requiring an outlay of cash and any interest on the Bonds or any Debt. EE. The term Ordinance shall mean this Ordinance adopted by the City Council on March 28, 2017 authorizing the issuance of the Bonds. FF. The term Outstanding shall mean when used in this Ordinance with respect to all Debt means, as of the date of determination, all Debt except: (1) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations for which payment has been duly provided by the City in accordance with the provisions of Section 35 of this Ordinance; and (3) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations that have been mutilated, destroyed, lost, or stolen and replacement Bonds have been registered and delivered in lieu thereof as provided in Section 27 of this Ordinance. GG. The term Paying Agent/Registrar shall mean the financial institution specified in Section 3 of this Ordinance, or its herein -permitted successors and assigns. HH. The term Previously Issued Inferior Lien Obligations shall mean the Federal Contract. 27732317.8 -23- II. The term Previously Issued Junior Lien Obligations shall mean, as of the Closing Date the Outstanding and unpaid obligations of the City that are payable solely from and equally and ratably secured by a lien on and pledge of the Junior Lien Pledged Revenues which includes a lien on and pledge of Net Revenues of the System that is junior and inferior to the lien thereon and pledge thereof securing the Priority Bonds but superior to the lien thereon and pledge thereof securing any Subordinate Lien Obligations and Inferior Lien Obligations, identified as follows: (1) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2012", dated November 15, 2012, in the original principal amount of $69,085,000; (2) "City of Corpus Christi, Texas Utility System Junior Lien Revenue and Refunding Bonds, Series 2012", dated November 15, 2012, in the original principal amount of $155,660,000; (3) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2013", dated November 1, 2013, in the original principal amount of $97,930,000; (4) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2015A", dated March 1, 2015, in the original principal amount of $93,600,000; (5) "City of Corpus Christi, Texas Utility System Variable Rate Junior Lien Revenue Improvement Bonds, Series 2015C", dated July 1, 2015, in the original principal amount of $101,385,000; (6) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2016", dated August 1, 2016, in the original principal amount of $80,415,000; and (7) Upon issuance, the Bonds. JJ. The term Previously Issued Priority Bonds shall mean, as of the Closing Date (i) the Outstanding and unpaid obligations of the City that are payable solely from and equally and ratably secured by a prior and first lien on and pledge of the Net Revenues of the System, identified as follows: (1) "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005", dated January 1, 2005, in the original principal amount of $70,390,000; (2) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2009", dated March 1, 2009, in the original principal amount of $96,490,000; 27732317.8 -24- (3) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010", dated March 1, 2010, in the original principal amount of $8,000,000; (4) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Taxable Series 2010 (Direct Subsidy -Build America Bonds)", dated July 1, 2010, in the original principal amount of $60,625,000; (5) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010A", dated July 1, 2010, in the original principal amount of $14,375,000; and (6) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2012", dated April 1, 2012, in the original principal amount of $52,500,000. KK. The term Priority Bonds shall mean the Previously Issued Priority Bonds and any Additional Priority Bonds hereafter issued to refund any of the foregoing if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System, as determined by the City Council in accordance with any applicable law. LL. The term Prudent Utility Practice shall mean any of the practices, methods and acts, in the exercise of reasonable judgment, in the light of the facts, including but not limited to the practices, methods and acts engaged in or approved by a significant portion of the public utility industry prior thereto, known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. It is recognized that Prudent Utility Practice is not intended to be limited to the optimum practice, method or act at the exclusion of all others, but rather is a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. In the case of any facility included in the System which is owned in common with one or more other entities, the term "Prudent Utility Practice", as applied to such facility, shall have the meaning set forth in the agreement governing the operation of such facility. MM. The term Purchaser shall mean the initial purchaser or purchasers of the Bonds named in Section 28 of this Ordinance. NN. The term Refunded Obligations shall mean the obligations set forth on Schedule I hereto which is incorporated by reference for all purposes to this ordinance. 00. The term Required Reserve Amount shall have the meaning given such term in Section 14 of this Ordinance. PP. The term Reserve Fund shall have the meaning given such term in Section 14 of this Ordinance. 27732317.8 -25- QQ. The term Reserve Fund Deposits shall have the meaning given such term in Section 14 of this Ordinance. RR. The term Special Project shall mean, to the extent permitted by law, any water, sewer, wastewater reuse, or municipal drainage system property, improvement, or facility declared by the City, upon the recommendation of the City Council, not to be part of the System, for which the costs of acquisition, construction, and installation are paid from proceeds of Special Project Bonds (as hereinafter defined) being a financing transaction other than the issuance of bonds payable from ad valorem taxes, Net Revenues, or Junior Lien Pledged Revenues, and for which all maintenance and operation expenses are payable from sources other than ad valorem taxes, Net Revenues, or Junior Lien Pledged Revenues, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction, and installation under such Special Project Bonds. SS. The term Stated Maturity shall mean the annual principal payments of the Bonds payable on July 15 of each year, as set forth in Section 2 of this Ordinance. TT. The term Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Net Revenues, such pledge being subordinate and inferior to the lien on and pledge of the Net Revenues that is or will be pledged to the payment of the Priority Bonds or that is included in Junior Lien Pledged Revenues, but senior and superior to the lien thereon and pledge thereof that is or will be pledged to the payment of any Inferior Lien Obligations now Outstanding or hereafter issued by the City, and on parity with the lien on and pledge of the Net Revenues securing the payment of the then - Outstanding Subordinate Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by such subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. UU. The term System shall mean and include, whether now existing or hereinafter added (including additions made from time to time in accordance with the provisions of the City ordinances authorizing the issuance of the Outstanding Priority Bonds), the City's existing combined waterworks system, wastewater disposal system and gas system, together with all future extensions, improvements, enlargements, and additions thereto, including, to the extent permitted by law (and to be added at the sole discretion of the City), storm sewer and drainage within the waterworks system, solid waste disposal system, additional utility (including electricity), telecommunications, technology, and any other similar enterprise services, and all replacements, additions, and improvements to any of the foregoing, within or without the City limits; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not include any waterworks, wastewater or gas facilities which are declared by the City to be a Special Project and not a part of the System and which are hereafter acquired or constructed by the City with the proceeds from the issuance of Special Project Bonds, which are hereby defined as being special revenue obligations of the City which are not secured by or payable from all or part of the Net Revenues and/or Junior Lien Pledged Revenues, but which are secured by and payable solely from special contract revenues, 27732317.8 -26- or payments received from the City or any other legal entity, or any combination thereof, in connection with such facilities; and such revenues or payments shall not be considered as or constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the issuance of such Special Project Bonds. VV. The term System Fund shall have the meaning given such term in Section 12 of this Ordinance. SECTION 10: Pledge of Junior Lien Pledged Revenues. A. The City hereby covenants and agrees that the Junior Lien Pledged Revenues of the System are hereby irrevocably pledged to the payment and security of the Junior Lien Obligations, including the establishment and maintenance of the special funds or accounts created for the payment and security thereof, all as hereinafter provided; and it is hereby ordained that the Junior Lien Obligations, and the interest thereon, shall constitute a lien on and pledge of the Junior Lien Pledged Revenues and be valid and binding without any physical delivery thereof or further act by the City, and the lien created hereby on the Junior Lien Pledged Revenues for the payment and security of the Junior Lien Obligations, shall be, subject to the subordinate lien nature of the Junior Lien Pledged Revenues as herein described otherwise, prior in right and claim as to any other indebtedness, liability, or obligation of the City or the System. The Junior Lien Obligations are and will be secured by and payable only from the Junior Lien Pledged Revenues, and are not secured by or payable from a mortgage or deed of trust on any properties whether real, personal, or mixed, constituting the System. B. Chapter 1208, as amended, Texas Government Code, applies to the issuance of the Bonds and the pledge of Junior Lien Pledged Revenues granted by the City under subsection A of this Section, and such pledge is therefore valid, effective, and perfected. If Texas law is amended at any time while the Junior Lien Obligations are Outstanding and unpaid such that the pledge of the Junior Lien Pledged Revenues granted by the City is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, then in order to preserve to the registered owners of the Junior Lien Obligations the perfection of the security interest in this pledge, the City Council agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, as amended, Texas Business & Commerce Code and enable a filing to perfect the security interest in this pledge to occur. SECTION 11: Rates and Charges. For the benefit of the Holders of the Bonds and in addition to all provisions and covenants in the laws of the State of Texas and in this Ordinance, the City hereby expressly stipulates and agrees, while any of the Junior Lien Obligations are Outstanding, to establish and maintain rates and charges for facilities and services afforded by the System that are reasonably expected, on the basis of available information and experience and with due allowance for contingencies, to produce Gross Revenues in each Fiscal Year sufficient: A. To pay all Operating Expenses, or any expenses required by statute to be a first claim on and charge against the Gross Revenues of the System. 27732317.8 -27- B. To produce Net Revenues, together with any other lawfully available funds, sufficient to satisfy the rate covenant contained in the ordinances authorizing the issuance of the Priority Bonds and to pay the principal of and interest on the Priority Bonds and the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Priority Bonds, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a prior and first lien on an pledge of the Net Revenues of the System; C. To produce Net Revenues, together with any other lawfully available funds, equal to at least 1.15 times Average Annual Debt Service Requirements on the then -Outstanding Junior Lien Obligations and to deposit the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Junior Lien Obligations, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a lien on and pledge of the Net Revenues, including the Junior Lien Pledged Revenues, that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds but senior and superior to the lien thereon and pledge thereof securing the repayment of any Subordinate Lien Obligations and any Inferior Lien Obligations; D. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the amounts that may be deposited in the special funds established for the payment of any Subordinate Lien Obligations; E. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the principal of and interest on any Inferior Lien Obligations as the same become due and payable and to deposit the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of any Inferior Lien Obligations, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a lien on and pledge of the Net Revenues that is subordinate and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, the Junior Lien Obligations, and any Subordinate Lien Obligations; and F. To pay, together with any other lawfully available funds, any other legally incurred Debt payable from the Net Revenues of the System and/or secured by a lien on any part of the System. The determination of the amount of principal of and interest on any obligations identified in this Section for the purpose of confirming the sufficiency of System rates and charges shall be made after giving consideration as an offset to debt service the receipt or anticipated receipt of a refundable tax credit or similar payment relating to any series of obligations irrevocably designated as refundable tax credit bonds pursuant to the City ordinance authorizing their issuance or otherwise relating thereto. SECTION 12: System Fund. The City hereby covenants, agrees, and ratifies its prior covenants and agreements that the Gross Revenues of the System shall be deposited, as collected and received, into a separate Fund or account (previously created and established and to be maintained with the Depository) known as the "City of Corpus Christi, Texas Utility System Revenue Fund" (the System Fund and that the Gross Revenues of the System shall be kept 27732317.8 -28- separate and apart from all other funds of the City. All Gross Revenues deposited into the System Fund shall be pledged and appropriated to the extent required for the following uses and in the order of priority shown: A. First: To the payment of all necessary and reasonable Operating Expenses or other expenses required by statute to be a first charge on and claim against the revenues of the System. B. Second: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Previously Issued Priority Bonds and any Additional Priority Bonds hereafter issued by the City. C. Third: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Previously Issued Junior Lien Obligations and any Additional Junior Lien Obligations hereafter issued by the City. D. Fourth: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of any Subordinate Lien Obligations hereafter issued by the City. E. Fifth: To the payment of the amounts that must be deposited in any special funds and accounts created and established for the payment, security, and benefit of the Previously Issued Inferior Lien Obligations and any Additional Inferior Lien Obligations hereafter issued by the City. Any Net Revenues remaining in the System Fund following such transfers may be used by the City for payment of other obligations of the System, and for any other lawful purpose; provided, however, that for so long as any Priority Bonds remain Outstanding, transfers made for purposes other than for payment of obligations of the System shall be made only at the end of the Fiscal Year (if such limitation is imposed, and then, only to the extent imposed in the City ordinances authorizing the issuance of the Priority Bonds). SECTION 13: Bond Fund - Excess Funds. For purposes of providing funds to pay the principal of and interest on the currently Outstanding Junior Lien Obligations as the same become due and payable, the City agrees to maintain, at the Depository, a separate and special Fund or account to be created and known as the "City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds Interest and Sinking Fund" (the Bond Fund). The City covenants that there shall be deposited by an Authorized Official into the Bond Fund prior to each principal and interest payment date from the available Net Revenues an amount equal to one hundred per cent (100%) of the amount required to fully pay the interest on and the principal of the currently Outstanding Junior Lien Obligations then falling due and payable, such deposits to pay maturing principal and accrued interest on the currently Outstanding Junior Lien Obligations to be made in substantially equal monthly installments on or before the 10th day of each month, beginning on or before the 10th day of the month next following the delivery of the Bonds to the Purchasers. As described further in Section 15 hereof, if the Junior Lien Pledged Revenues in any month are insufficient to make the required payments into the Bond Fund, then 27732317.8 -29- the amount of any deficiency in such payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. The required monthly deposits to the Bond Fund for the payment of principal of and interest on the currently Outstanding Junior Lien Obligations shall continue to be made as hereinabove provided until such time as (i) the total amount on deposit in the Bond Fund and Reserve Fund is equal to the amount required to fully pay and discharge all Outstanding Junior Lien Obligations (principal and interest) or (ii) the Junior Lien Obligations are no longer Outstanding. Any proceeds of the Bonds, and investment income thereon, not expended for authorized purposes shall be deposited into the Bond Fund and shall be taken into consideration and reduce the amount of monthly deposits required to be deposited into the Bond Fund from the Net Revenues of the System. Any surplus proceeds from the sale of the Bonds, including investment income thereon, not expended for authorized purposes shall be deposited in the Bond Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in such Fund from the Junior Lien Pledged Revenues. SECTION 14: Reserve Fund. To accumulate and maintain a reserve for the payment of the Bonds equal to 100% of the Average Annual Debt Service Requirements or such lesser amount as restricted by the Code (calculated by the City Council at the beginning of each Fiscal Year and as of the date of issuance of the Bonds and each series of Additional Junior Lien Obligations) for the Bonds (the Required Reserve Amount), the City hereby creates and establishes, and shall maintain at a Depository a separate and special fund known as the "Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds Reserve Fund" (the Reserve Fund). Earnings and income derived from the investment of amounts held for the credit of the Reserve Fund shall be retained in the Reserve Fund until the Reserve Fund contains the Required Reserve Amount; thereafter, such earnings and income shall be deposited to the credit of the System Fund. All funds deposited into the Reserve Fund shall be used solely for the payment of the principal of and interest on the Bonds, when and to the extent other funds available for such purposes are insufficient, and, in addition, may be used to retire the last Stated Maturity or Stated Maturities of or interest on the Bonds. The City may acquire a Credit Facility or Facilities issued by a Credit Provider in amounts equal to all or part of the Required Reserve Amount for the Bonds in lieu of depositing cash into the Reserve Fund; provided, however, that no such Credit Facility may be so substituted unless the substitution of the Credit Facility will not, in and of itself, cause any ratings then assigned to the Bonds by any nationally recognized rating agency to be lowered and the resolution authorizing the substitution of the Credit Facility for all or part of the Required Reserve Amount for the Bonds contains (i) a finding that such substitution is cost effective and (ii) a provision that the interest due on any repayment obligation of the City by reason of payments made under such Credit Facility does not exceed the highest lawful rate of interest which may be paid by the City at the time of the delivery of the Credit Facility. The City reserves the right to use Junior Lien Pledged Revenues to fund the payment of (1) periodic premiums on the Credit Facility as a part of the payment of the City's Operating Expenses, and 27732317.8 -30- (2) any repayment obligation incurred by the City (including interest) to the Credit Provider, the payment of which will result in the reinstatement of such Credit Facility, prior to making payments required to be made to the Reserve Fund pursuant to the provisions of this Section to restore the balance in such fund the Required Reserve Amount for the Bonds. Until the issuance of any Additional Junior Lien Obligations (or as from time to time recalculated by the City as provided in the first paragraph of this Section), the Required Reserve Amount is $ (inclusive of the Bonds). Of this amount, $ , representing the portion of the Required Reserve Amount attributable to the Bonds, shall be deposited to the Reserve Fund at such time as may be required pursuant to the provisions of this Section from Revenues, paid from the System Fund at such level of priority as specified in Section 12, by the deposit of monthly installments, made on or before the 10th day of each month following the month in which such obligation to fund the Reserve Fund arises, of not less than 1/60th of the amount to be maintained in the Reserve Fund. As and when Additional Junior Lien Obligations are delivered or incurred, the Required Reserve Amount shall be increased, if required, to an amount calculated in the manner provided in the first paragraph of this Section. Any additional amount required to be maintained in the Reserve Fund shall be so accumulated by the deposit of all or a portion of the necessary amount from the proceeds of the issue or other lawfully available funds in the Reserve Fund immediately after the delivery of the then proposed Additional Junior Lien Obligations, or, at the option of the City, by the deposit of monthly installments, made on or before the business day before the 10th day of each month following the month of delivery of the then proposed Additional Junior Lien Obligations, of not less than 1/60th of the additional amount to be maintained in the Reserve Fund by reason of the issuance of the Additional Junior Lien Obligations then being issued (or 1/60th of the balance of the additional amount not deposited immediately in cash) (such deposits, the Required Reserve Fund Deposits), thereby ensuring the accumulation in the Reserve Fund of the appropriate Required Reserve Amount. When and for so long as the cash and investments in the Reserve Fund equal the Required Reserve Amount, no deposits need be made to the credit of the Reserve Fund; but, if and when the Reserve Fund at any time contains less than the Required Reserve Amount (other than as the result of the issuance of Additional Junior Lien Obligations as provided in the preceding paragraph), the City covenants and agrees to cure the deficiency in the Required Reserve Amount by resuming the Required Reserve Fund Deposits to the Reserve Fund from the Junior Lien Pledged Revenues in monthly deposit amounts equal to not less than 1/60th of the Required Reserve Amount covenanted by the City to be maintained in the Reserve Fund. Any such deficiency payments shall be made on or before the 10th day of each month until the Required Reserve Amount has been fully restored. The City further covenants and agrees that, subject only to the prior payments to be made to the Bond Fund, the Junior Lien Pledged Revenues shall be applied and appropriated and used to establish and maintain the Required Reserve Amount and to cure any deficiency in such amounts as required by the terms of this Ordinance, any City ordinance authorizing the issuance of the Priority Bonds, and any other ordinance pertaining to the issuance of Additional Junior Lien Obligations. During such time as the Reserve Fund contains the Required Reserve Amount, the City Council may, at its option, withdraw all surplus funds in the Reserve Fund in excess of the 27732317.8 -3 1 - Required Reserve Amount. Any such withdrawn surplus shall be deposited to the Bond Fund or used by the City for any other lawful purpose; provided, however, to the extent that such excess amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in accordance with then -applicable State law. In the event a Credit Facility issued to satisfy all or a part of the City's obligation with respect to the Reserve Fund causes the amount then on deposit in the Reserve Fund to exceed the Required Reserve Amount for the Bonds, the City may transfer such excess amount to any fund or funds established for the payment of or security for the Bonds (including any escrow established for the final payment of any such obligations pursuant to the provisions of the Act), or be used for any lawful purposes; provided, however, to the extent that such excess amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in accordance with then -applicable State law. Notwithstanding anything to the contrary contained in this Section, the requirements set forth above to fund the Reserve Fund in the amount of the Required Reserve Amount shall be suspended for such time as the Junior Lien Pledged Revenues for each Fiscal Year are equal to at least 110% of the Average Annual Debt Service Requirements. In the event that the Junior Lien Pledged Revenues for any two consecutive Fiscal Years are less than 110% (unless such percentage is below 100% in any Fiscal Year, in which case the hereinafter—specified requirements will commence after such Fiscal Year) of the Average Annual Debt Service Requirements, the City will be required to commence making the deposits to the Reserve Fund, as provided above, and to continue making such deposits until the earlier of (i) such time as the Reserve Fund contains the Required Reserve Amount or (ii) the Junior Lien Pledged Revenues for a Fiscal Year have been equal to not less than 110% of the Average Annual Debt Service Requirements. SECTION 15: Deficiencies — Excess Junior Lien Pledged Revenues. A. If on any occasion there shall not be sufficient Junior Lien Pledged Revenues to make the required deposits into the Bond Fund, then such deficiency shall be cured as soon as possible from the next available unallocated Junior Lien Pledged Revenues, or from any other sources available for such purpose, and such payments shall be in addition to the amounts required to be paid into these Funds or accounts during such month or months. B. Subject to making the required deposits to the Bond Fund when and as required by any ordinance or resolution authorizing the issuance of the currently Outstanding Priority Bonds, the Junior Lien Obligations, any Subordinate Lien Obligations and any Inferior Lien Obligations, the excess Net Revenues of the System may be used by the City for any lawful purpose (as further provided in Section 12 hereof). SECTION 16: Payment of Bonds. While any of the Bonds are Outstanding, an Authorized Official shall cause to be transferred to the Paying Agent/Registrar therefor, from funds on deposit in the Bond Fund, amounts sufficient to fully pay and discharge promptly each installment of interest on and principal of the Bonds as such installment accrues or matures; such transfer of funds must be made in such manner as will cause immediately available funds to be 27732317.8 -32- deposited with the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date a debt service payment is due on the Bonds. SECTION 17: Investments. Funds held in any Fund or account created, established, or maintained pursuant to this Ordinance shall, at the option of the City, be placed in time deposits, certificates of deposit, guaranteed investment contracts or similar contractual agreements as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, or any other law, and secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, including investments held in book -entry form, in securities including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from any Fund or account will be available at the proper time or times. Such investments (except State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be valued in terms of current market value within 45 days of the close of each Fiscal Year. All interest and income derived from deposits and investments in the Bond Fund immediately shall be credited to, and any losses debited to, the Bond Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Bonds. SECTION 18: Covenants. It is the intention of the City Council and accordingly hereby recognized and stipulated that the provisions, agreements, and covenants contained herein bearing upon the management and operations of the System, and the administering and application of Gross Revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements, and covenants contained in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding, and to the extent of any irreconcilable conflict between the provisions contained herein and in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance, especially the priority of rights and benefits conferred thereby to the holders of the Priority Bonds now or hereafter Outstanding; provided, however, that the provisions of this Ordinance concerning the issuance of Additional Priority Bonds shall control. It is expressly recognized that prior to the issuance of any Additional Junior Lien Obligations, Subordinate Lien Obligations, or Additional Inferior Lien Obligations, that the City must comply with each of the conditions precedent contained in this Ordinance and the City ordinances authorizing the issuance of the then -Outstanding Priority Bonds, as appropriate. A. Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of Junior Lien Obligations; it will promptly pay or cause to be paid the principal amount of and interest on all Debt, on the dates and in the places and manner 27732317.8 -33- prescribed in such ordinances and such Debt; and it will, at the time and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the System Fund and the Funds herein created; and any registered owner of any Debt may require the City, its officials and employees to carry out, respect or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Debt, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, against the City, its officials and employees. B. City's Legal Authority. It is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to issue the Bonds; that all action on its part for the issuance of the Bonds has been duly and effectively taken, and that the Bonds in the hands of the owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. C. Acquisition and Construction; Operation and Maintenance. (1) It shall use its best efforts in accordance with Prudent Utility Practice to acquire and construct, or cause to be acquired and constructed, any Capital Additions or Capital Improvements, in accordance with the plans and specifications therefor, as modified from time to time, with due diligence and in a sound and economical manner; and (2) it shall at all times use its best efforts to operate or cause to be operated the System properly and in an efficient manner, consistent with Prudent Utility Practice, and shall use its best efforts to maintain, preserve, reconstruct and keep the same or cause the same to be so maintained, preserved, reconstructed and kept, with the appurtenances and every part and parcel thereof, in good repair, working order and condition, and shall from time to time make, or use its best efforts to cause to be made, all necessary and proper repairs, replacement and renewals so that at all times the operation of the System may be properly and advantageously conducted. D. Title. It has or will obtain lawful title, whether such title is in fee or lesser interest, to the lands, buildings, structures and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof, for the benefit of the owners of the Junior Lien Obligations, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Junior Lien Pledged Revenues to the payment of the Junior Lien Obligations in the manner prescribed herein, and has lawfully exercised such rights. E. Liens. It will from time to time and before the same become delinquent pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or the System; it will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be fully preserved in the manner provided herein, and it will not create or suffer to be created any mechanic's, laborer's, materialman's or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided however, that no such tax, assessment or charge, and that no such claims which might be used as the basis of a mechanic's, laborer's, materialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. 27732317.8 -34- F. No Free Service. No free service or service otherwise than in accordance with the established rate schedule shall be furnished, directly or indirectly, by the System to any person, firm, corporation or other entity, other than the City. No part of the salary of any official or employee of the City or his replacement shall be paid from Junior Lien Pledged Revenues unless and only to the extent the duties and performances of such official or employee or his replacement appertain directly to the System. To the extent the City receives the services of the System, such services shall be accounted for according to the established rate schedule. G. Further Encumbrance. It will not additionally encumber the Net Revenues of the System in any manner, except as permitted in the City ordinances authorizing the Previously Issued Priority Bonds and in this Ordinance (which provisions are also included in other City ordinances authorizing other series of Junior Lien Obligations). H. Sale, Lease or Disposal of Property. No part of the System shall be sold, leased, mortgaged, demolished, removed or otherwise disposed of, except as follows: (1) To the extent permitted by law, the City may sell or exchange at any time and from time to time any property or facilities constituting part of the System only if (A) it shall determine such property or facilities are not useful in the operation of the System, or (B) the proceeds of such sale are $250,000 or less, or it shall have received a certificate executed by an Engineer and the City Manager stating, in their opinion, that the fair market value of the property or facilities exchanged is $250,000 or less, or (C) if such proceeds or fair market value exceeds $250,000 it shall have received a certificate executed by an Engineer and the City Manager stating (i) that system within the System of which the property or facilities comprises a part thereof and (ii) in their opinion, that the sale or exchange of such property or facilities will not impair the ability of the City to comply during the current or any future Fiscal Year with the provisions of Subsection K of this Section. The proceeds of any such sale or exchange not used to acquire other property necessary or desirable for the safe or efficient operation of the System shall forthwith, at the option of the City (i) be used to redeem or purchase Debt, or (ii) otherwise be used to provide for the payment of Debt. The foregoing notwithstanding, if such property or facilities sold or exchanged constituted property or facilities comprising all or a part of a system within the System, the acquisition, improvement or extension of such system having not been financed by the City in any manner with the proceeds of Debt, or with the proceeds of obligations which were refunded in whole or in part with the proceeds of Debt, then the City may utilize the proceeds of such sale or exchange for any lawful purpose; and (2) To the extent permitted by law, the City may lease or make contracts or grant licenses for the operation of, or make arrangements for the use of, or grant easements or other rights with respect to, any part of the System, provided that any such lease, contract, license, arrangement, easement or right (A) does not impede the operation by the City of the System and (B) does not in any manner impair or adversely affect the rights or security of the owners of the Debt under this Ordinance; and provided, further, that if the depreciated cost of the property to be covered by any such lease, contract, license, arrangement, easement or other right is in excess of $500,000, the City shall have received a certificate executed by an Engineer and the City Manager that the action of the 27732317.8 -35- City with respect thereto does not result in a breach of the conditions under this clause (2). Any payments received by the City under or in connection with any such lease, contract, license, arrangement, easement or right in respect of the System or any part thereof shall constitute Gross Revenues. L Books, Records and Accounts. It shall keep proper books, records and accounts separate and apart from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the System and the City shall cause said books and accounts to be audited annually as of the close of each Fiscal Year by the Accountant. J. Insurance. (1) Except as otherwise permitted in clause (2) below, it shall cause to be insured such parts of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance shall also be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be protected by such insurance. At any time while any contractor engaged in construction work shall be fully responsible therefor, the City shall not be required to carry insurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the bondholders and their representatives at all reasonable times. (2) In lieu of obtaining policies for insurance as provided above, the City may self -insure against risks, accidents, claims or casualties described in clause (1) above. (3) The annual audit hereinafter required shall contain a section commenting on whether or not the City has complied with the requirements of this Section with respect to the maintenance of insurance, and listing the areas of insurance for which the City is self-insuring, all policies carried, and whether or not all insurance premiums upon the insurance policies to which reference is hereinbefore made have been paid. K. Audits. After the close of each Fiscal Year while any Debt is Outstanding, an audit will be made of the books and accounts relating to the System and the Net Revenues by the Accountant. Such annual audit reports shall be open to the inspection of the registered owners of Debt and their agents and representatives at all reasonable times. L. Governmental Agencies. It will comply with all of the terms and conditions of any and all franchises, permits and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorization and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation and maintenance of the System. 27732317.8 -36- M. No Competition. To the extent it legally may, it will not grant any franchise or permit for the acquisition, construction or operation of any competing facilities which might be used as a substitute for the System's facilities, and, to the extent that it legally may, the City will prohibit any such competing facilities. N. Rights of Inspection. The Engineer or any registered owner of $100,000 in aggregate principal amount of the Debt then Outstanding shall have the right at all reasonable times to inspect the System and all records, accounts and data of the City relating thereto, and upon request the City shall furnish to an Engineer or such registered owner, as the case may be, such financial statements, reports and other information relating to the City and the System as an Engineer or such registered owner may from time to time reasonably request. SECTION 19: Issuance of Additional Priority Bonds, Additional Junior Lien Obligations, Subordinate Lien Obligations, and Additional Inferior Lien Obligations. The City hereby expressly reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien on the Net Revenues of the System with the following priorities, without limitation as to principal amount, but subject to any terms, conditions, or restrictions applicable thereto under existing ordinances, laws, or otherwise: A. Additional Priority Bonds payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System upon satisfying each of the conditions precedent contained in the City ordinances authorizing the Previously Issued Priority Bonds concerning the issuance of Additional Priority Bonds to realize debt service savings by refunding any Priority Bonds at such time outstanding. For the avoidance of doubt, the City hereby covenants to no longer issue Priority Bonds for "new money" purposes. B. Additional Junior Lien Obligations, secured by and payable from the Junior Lien Pledged Revenues, which includes (primarily) a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds but senior and superior to the lien there on and pledge thereof securing the repayment of any Subordinate Lien Obligations and any Inferior Lien Obligations, upon satisfying each of the following conditions precedent: (1) The City Manager (or other officer of the City then having the responsibility for the financial affairs of the City) shall have executed a certificate stating (i) that the City is not then in default as to any covenant, obligation or agreement contained in any ordinance or other proceeding relating to any obligations of the City payable from and secured by a lien on and pledge of the Net Revenues and (ii) that the amounts on deposit in all Funds or Accounts created and established for the payment and security of all Outstanding obligations payable from and secured by a lien on and pledge of the Net Revenues are the amounts then required to be deposited therein. Such certificate shall be dated on or before the date of delivery of such Additional Junior Lien Obligations, but such certificate shall not be dated prior to the date an ordinance is passed authorizing the issuance of such Additional Junior Lien Obligations. 27732317.8 -37- (2) Conditions Precedent for Issuance of Additional Junior Lien Obligations — Capital Improvements and for any other Lawful Purpose except for Capital Additions or for Refunding. The City covenants and agrees that Additional Junior Lien Obligations will not be issued for the purpose of financing Capital Improvements, or for any other lawful purpose (except for Capital Additions or for refunding, which are to be issued in accordance with the provisions of Subsection (3) of this Section and Section 21 hereof, respectively) unless and until the conditions precedent in Subsection (1) above have been satisfied and, in addition thereto, the City has secured a certification of the City Manager to the effect that, according to the books and records of the City, the Net Earnings (as hereinafter defined) for the preceding Fiscal Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Junior Lien Obligations is adopted are at least equal to 1.15 times the Average Annual Debt Service Requirements for all then -Outstanding Priority Bonds and Junior Lien Obligations after giving effect to the Additional Junior Lien Obligations then proposed. The foregoing notwithstanding, the City covenants and agrees that Additional Junior Lien Obligations may not be issued for the purpose of financing Capital Improvements when other Outstanding Junior Lien Obligations which have been issued for the purpose of financing Capital Additions and for which capitalized interest for such other Junior Lien Obligations has been provided for at least the twelve months subsequent to the date of issuance of the Additional Junior Lien Obligations then proposed to be issued, unless the conditions precedent in Subsection (1) above have been satisfied and, in addition thereto, the City has either (1) complied with the relevant conditions in this Subsection as set forth above, or (2) if the relevant conditions of this Subsection (2) as set forth above cannot be satisfied, the City has satisfied the conditions precedent in Subsection (3)(i) and (ii) of this Section (but, for purposes of such clauses, the term Capital Improvements shall be substituted for the term Capital Additions where the term Capital Additions appears therein to the extent necessary to give recognition to the fact that Capital Improvements, rather than Capital Additions, are then to be financed) and has secured a certification of the City Manager to the effect that, according to the books and records of the City, the Net Earnings for the preceding Fiscal Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Junior Lien Obligations is adopted are at least equal to 1.15 times the Average Annual Debt Service Requirements for all then -Outstanding Priority Bonds and Junior Lien Obligations (other than Junior Lien Obligations issued for Capital Additions for which capitalized interest has been provided for at least the twelve months subsequent to the date of issuance of the Additional Junior Lien Obligations proposed to be issued) after giving effect to the Additional Junior Lien Obligations then proposed to be issued. (3) Conditions Precedent for Issuance of Additional Junior Lien Obligations — Capital Additions: Initial Issue. The City covenants and agrees that Additional Junior Lien Obligations will not be issued for the purpose of financing Capital Additions, unless the same conditions precedent specified in Subsection (1) above have been satisfied and, in addition thereto, either the relevant conditions precedent specified in Subsection (1) above are satisfied or, in the alternative, the City shall have obtained: (i) from an Engineer a comprehensive engineering report for each Capital Addition to be financed, which report shall (A) contain (1) detailed estimates of the cost of acquiring and constructing the Capital Addition, (2) the estimated date the acquisition and construction 27732317.8 -38- of the Capital Addition will be completed and commercially operative, and (3) a detailed analysis of the impact of the Capital Addition on the financial operations of the system for which the Capital Addition is to be integrated and to the System as a whole during the construction thereof and for at least five Fiscal Years after the date the Capital Addition becomes commercially operative, and (B) conclude that (1) the Capital Addition is necessary and will substantially increase the capacity, or is needed to replace existing facilities, to meet current and projected demands for the service or product to be provided thereby, and (2) the estimated cost of providing the service or product from the Capital Addition will be reasonable in comparison with projected costs for furnishing such service or product from other reasonably available sources; and (ii) a certificate of an Engineer to the effect that, based on an engineering report prepared thereby for each Capital Addition, the projected Net Earnings for each of the five Fiscal Years subsequent to the date the Capital Addition becomes commercially operative (as estimated in the engineering report) will be equal to at least 1.15 times the Average Annual Debt Service Requirements for the currently Outstanding Junior Lien Obligations or incurred and all Additional Junior Lien Obligations estimated to be issued, if any, for all Capital Improvements and for all Capital Additions then in progress or then being initiated, during the period from the date the first series of obligations for the Capital Additions is to be delivered through the fifth Fiscal Year subsequent to the date the Capital Addition is estimated to become commercially operative. (4) Completion Issues. Once a Capital Addition has been initiated by meeting the conditions precedent specified in Subsection (3)(i) and (ii) above and the initial Junior Lien Obligations issued therefor are delivered, the City reserves the right to issue Additional Junior Lien Obligations to finance the remaining costs of such Capital Addition in such amounts as may be necessary to complete the acquisition and construction thereof and make the same commercially operative without satisfaction of any condition precedent under Subsection (3)(i) and (ii) or Subsection (1) of this Section but subject to satisfaction of the following conditions precedent: (i) the City makes a forecast (the Forecast) of the operations of the System demonstrating the System's ability to pay all obligations, payable from the Net Revenues of the System to be Outstanding after the issuance of the Additional Junior Lien Obligations then being issued for the period (the Forecast Period) of each ensuing Fiscal Year through the fifth Fiscal Year subsequent to the latest estimated date such Capital Addition is expected to be commercially operative; and (ii) an Engineer reviews such Forecast and executes a certificate to the effect that (A) such Forecast is reasonable, and based thereon (and such other factors deemed to be relevant), the Net Revenues of the System will be adequate to pay all the obligations, payable from the Junior Lien Pledged Revenues of the System to be Outstanding after the issuance of the Additional Junior Lien Obligations then being issued for the Forecast Period and (B) the proceeds from the sale of such Additional Junior Lien Obligations are estimated to be sufficient to complete such acquisition and construction. (5) Computations; Reports. With reference to Junior Lien Obligations anticipated and estimated to be issued or incurred, the Average Annual Debt Service Requirements therefor shall be those reasonably estimated and computed by the City's Director of Financial Services (or other officer of the City then having the primary 27732317.8 -39- responsibility for the financial affairs of the City) after giving effect to the receipt or anticipated receipt of a refundable tax credit or similar payment relating to any series of Junior Lien Obligations irrevocably designated as refundable tax credit bonds, which payment shall be treated as an offset to regularly scheduled debt service of the series of Junior Lien Obligations to which it relates. In the preparation of the engineering report required in Subsection (3)(i) above, an Engineer may rely on other experts or professionals, including those in the employment of the City, provided such engineering report discloses the extent of such reliance and concludes it is reasonable so to rely. In connection with the issuance of Junior Lien Obligations for Capital Additions, the certification of the City Manager and an Engineer, together with the engineering report for the initial issue and the Forecast for a subsequent issue, shall be conclusive evidence and the only evidence required to show compliance with the provisions and requirements and this clause of this Section. (6) Combination Issues. Junior Lien Obligations for Capital Additions may be combined in a single issue with Junior Lien Obligations for Capital Improvements or for any lawful purpose provided the conditions precedent set forth in Subsection (2) through (4) are complied with as the same relate to the appropriate purpose. (7) Definition of Net Earnings. As used in this Section, the term Net Earnings shall mean the Gross Revenues of the System after deducting the Operating Expenses of the System and those items identified in the SECOND level of priority in Section 12 hereof, but not expenditures which, under standard accounting practice, should be charged to capital expenditures. (8) Determination of Net Earnings. In making a determination of Net Earnings for any of the purposes described in this Section, the City Manager may take into consideration a change in the rates and charges for services and facilities afforded by the System that became effective at least 60 days prior to the last day of the period for which Net Earnings are determined and, for purposes of satisfying any of the Net Earnings test described above, make a pro forma determination of the Net Earnings of the System for the period of time covered by the City Manager's certification or opinion based on such change in rates and charges being in effect for the entire period covered by the City Manager's certificate or opinion. C. The City may issue Subordinate Lien Obligations secured by a lien on and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged Revenues, respectively, but senior and superior to the lien there on and pledge thereof securing the repayment of any Inferior Lien Obligations, on the terms and conditions desired by the City, subject only to the limitations imposed by applicable law and upon satisfying each of the conditions precedent contained in the ordinances authorizing the issuance of the currently - Outstanding Priority Bonds and this Ordinance. D. The City may issue Additional Inferior Lien Obligations secured by a lien on and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged Revenues, 27732317.8 -40- respectively, on the terms and conditions desired by the City, subject only to the limitations imposed by applicable law and upon satisfying each of the conditions precedent contained in the ordinances authorizing the issuance of the currently -Outstanding Priority Bonds, this Ordinance, and, to the extent applicable, the Federal Contract. SECTION 20: Refunding Bonds. The City reserves the right to issue refunding bonds to refund all or any part of the currently Outstanding Debt, pursuant to any applicable law then available, upon such terms and conditions as the City Council may deem to be in the best interest of the City, and if less than all such currently Outstanding Debt are refunded, the conditions precedent prescribed for the issuance of Additional Junior Lien Obligations set forth in Section 19 of this Ordinance shall be satisfied and the City Managers' certification required in Section 19 shall give effect to the Debt Service Requirements of the proposed refunding bonds (but shall not give effect to the Debt Service Requirements of the obligations being refunded following their cancellation or provision being made for their payment). SECTION 21: Issuance of Special Project Bonds. Nothing in this Ordinance shall be construed to deny the City the right and it shall retain the right to issue Special Project Bonds, provided, however, the City will not issue Special Project Bonds unless the City concludes, upon recommendation of the City Council, that (i) the plan for developing the Special Project is consistent with sound planning, (ii) the Special Project would not materially and adversely interfere with the operation of the System, (iii) the Special Project can be economically and efficiently operated and maintained, and (iv) the Special Project can be economically and efficiently utilized by the City to meet combined utility system requirements and the cost of such will be reasonable. SECTION 22: Security of Funds. All money on deposit in the funds or accounts for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and money on deposit in such Funds or accounts shall be used only for the purposes permitted by this Ordinance. SECTION 23: Remedies in Event of Default. The Purchasers may exercise all rights and remedies available to it in law or equity, and any provision of the Bonds that restricts or limits the Purchasers' full exercise of these remedies shall be of no force and effect. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Bond Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Bonds shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedy herein provided shall be cumulative of 27732317.8 -41- all other existing remedies and the specification of such remedy shall not be deemed to be exclusive. For the avoidance of doubt, no default with respect to any obligation that is secured by and payable from a lien on and pledge of Net Revenues that is junior and subordinate to the lien thereon and pledge thereof securing the Priority Bonds shall ever be deemed to be a default with respect to the Priority Bonds. SECTION 24: Notices to Holders Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first-class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 25: Bonds Are Negotiable Instruments. Each of the Bonds authorized herein shall be deemed and construed to be a "security" and as such a negotiable instrument with the meaning of the Chapter 8 of the Texas Uniform Commercial Code. SECTION 26: Cancellation. All Bonds surrendered for payment, transfer, redemption, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the City. SECTION 27: Mutilated, Destroyed, Lost, and Stolen Bonds. If (1) any mutilated Bond is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Bond, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Bond has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously Outstanding. 27732317.8 -42- In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Bond, pay such Bond. Upon the issuance of any new Bond or payment in lieu thereof, under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses (including attorney's fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Bonds. SECTION 28: Confirmation of Sale; Approval of Private Placement Memorandum. The sale of the Bonds to the Texas Water Development Board (the Purchaser) for the purchase price of $ , which represents a purchase price of par, less the Purchaser's origination fee of $ and no accrued interest, pursuant to a loan commitment received from the Purchaser, is hereby confirmed. The pricing and terms of the Bonds are hereby found and determined to be the most advantageous reasonably obtained from the City. Delivery of the Bonds shall be made to the Purchaser as soon as practicable after the adoption of this Ordinance, upon payment therefor by federal funds wire transfer, at no cost to the Purchaser, in accordance with the terms of sale. Furthermore, the City hereby approves in all respects the City's Private Placement Memorandum prepared in conjunction with the sale of the Bonds and to be delivered to the Purchaser on the Closing Date. The Mayor and/or City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of the Private Placement Memorandum in final form as may be required by the Purchaser, and such final Private Placement Memorandum in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Private Placement Memorandum authorized for deliver to the Purchaser. SECTION 29: Compliance with Purchaser's Rules and Regulations. The City will comply with all of the requirements contained in the resolution or resolutions adopted by the Purchaser with respect to the issuance of the Bonds. In addition, in compliance with the Purchaser's Drinking Water State Revolving Fund Program Rules, the City agrees and covenants so long as the Purchaser is the sole Holder of the Bonds: A. to keep and maintain full and complete records and accounts pertaining to the construction of the project refinanced with the proceeds of sale of the Bonds, including the 27732317.8 -43- Escrow Fund (defined herein), in accordance with the standards set forth by the Government Accounting Standard Board; B. to provide the Purchaser with copies of "as built plans" pertaining to the projects financed, in whole or in part, with any funds of the Purchaser; C. in addition to the requirements contained in Section 18.I hereof, to maintain current, accurate, and complete records and accounts necessary to demonstrate compliance with financial assistance related legal and contractual provisions; D. to comply with any special conditions specified by the Purchaser's water conservation plan as specified in 31 TAC 363.42(a)(2)(F) until all financial obligations to the Purchaser have been discharged; E. to abide by the Purchaser's rules and relevant state statutes now or hereafter existing, including, but not limited to, its environmental determinations made in accordance with 31 TAC §§ 371.001—.89 (2014) (Tex. Water Dev. Bd., Drinking Water State Revolving Fund); F. to notify the Executive Administrator of the Purchaser prior to taking any actions to alter the legal status of the City Council in any manner (such as a sale -transfer -merger with another retail public utility that results in a change in governance of the System) and to receive approval from the Purchaser of any action to convey the City's obligations to the Purchaser, as the Holder of the Bonds, to another entity; G. to the extent permitted by law, to indemnify, hold harmless, and protect the Purchaser from any and all claims, causes of action, or damages to the person or property of third parties arising from the sampling, analysis, transport, storage, treatment and disposition of any contaminated sewage sludge, contaminated sediments and/or contaminated media that may be generated by the City, its contractors, consultants, agents, officials, and employees as a result of activities relating to the project refinanced with proceeds of the Bonds to the extent permitted by law; H. to provide the Purchaser with all information required to be reported in accordance with the Federal Funding Accountability and Transparency Act of 2006, Pub. L. 109-282, and the City shall obtain a Data Universal Numbering System Number, register with the System for Award Management (SAM), and maintain current registration at all times while the Bonds remain Outstanding; I. to not use any portion of the Bond proceeds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire Nonpurpose Investments (as defined in Section 33 hereof) which produce a yield materially higher than the yield on the Purchaser's bonds that are used to provide the Purchaser with proceeds that it will use to purchase the Bonds (the Source Series Bonds), other than Nonpurpose Investments acquired with: (1) Proceeds of the Source Series Bonds invested for a reasonable temporary period of up to three (3) years (reduced by the period of investment by the Purchaser) until such proceeds are needed for the facilities to be financed; 27732317.8 -44- (2) Amounts invested in a bona fide debt service fund, within the meaning of §1.148-1(b) of the Regulations (as defined in Section 36 hereof); and (3) Amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed the least of maximum annual debt service on the Bonds, 125% of average annual debt service on the Bonds, or 10% of the stated principal amount (or, in the case of a discount, the issue price) of the Bonds; J. to provide documentation that the all applicable State procurement requirements, as well as all federal procurement requirements, under the Disadvantaged Business Enterprises program are met; and K. to provide a schedule prepared by an Engineer, specifying the useful life of the components of the project refinanced with Bond proceeds. SECTION 30: Escrow Deposit Letter - Approval and Execution. The Escrow Deposit Letter dated as of March 28, 2017 (the Agreement) by and between the City and The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the Escrow Agent), attached hereto as Exhibit B and incorporated herein by reference as a part of this Order for all purposes, is hereby approved as to form and content, and such Agreement in substantially the form and substance attached hereto, together with such changes or revisions as may be necessary to accomplish the refunding or benefit the City, is hereby authorized to be executed by an Authorized Official for and on behalf of the City and as the act and deed of this City Council; and such Agreement as executed by said officials shall be deemed approved by the City Council and constitute the Agreement herein approved. Furthermore, any Authorized Official and Bond Counsel, in cooperation with the Escrow Agent, are hereby authorized and directed to make the necessary arrangements for the purchase of the Escrowed Securities, if any, referenced in the Agreement and the delivery thereof to the Escrow Agent on the day of delivery of the Bonds to the Purchasers for deposit to the credit of the "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017 ESCROW FUND" (the Escrow Fund), including the execution of the subscription forms, if any, for the purchase and issuance of the "United States Treasury Securities - State and Local Government Series" for deposit to the Escrow Fund; all as contemplated and provided by the provisions of the Act, this Ordinance, and the Agreement. SECTION 31: Proceeds of Sale; Contribution from the City Immediately following the delivery of the Bonds, certain proceeds of sale along with a cash contribution, if any, from the City (less certain costs of issuance and accrued interest, if any, received from the Purchasers of the Bonds) shall be deposited with the Escrow Agent for application and disbursement in accordance with the provisions of the Escrow Agreement. The proceeds of sale of the Bonds not so deposited with the Escrow Agent for the refunding of the Refunded Obligations shall be disbursed for payment of costs of issuance or deposited in the Bond Fund for the Bonds, all in accordance with written instructions from an Authorized Official. Amounts held in the interest and sinking fund for the Refunded Obligations and not used as part of the City's contribution to the Escrow Fund, if any, shall be deposited into the Bond Fund and used to pay principal on the Bonds. 27732317.8 -45- SECTION 32: Redemption of Refunded Obligations. The Refunded Obligations referenced in the preamble hereof become subject to redemption prior to their stated maturity at the price of par and accrued interest to their date of redemption. The City shall give written notice to the paying agent/registrar for the Refunded Obligations that the Refunded Obligations have been called for redemption, and the City Council orders that such obligations are called for redemption on the redemption date set forth on Schedule I attached hereto, and such order to redeem the Refunded Obligations on such date shall be irrevocable upon the delivery of the Bonds. A copy of the notice of redemption pertaining to the Refunded Obligations is attached to this Ordinance as Exhibit C and is incorporated herein by reference for all purposes. The paying agent/registrar for the Refunded Obligations is authorized and instructed to provide notice of this redemption to the holders of the Refunded Obligations in the form and manner described in the City ordinance authorizing the issuance of the Refunded Obligations. SECTION 33: Covenants to Maintain Tax -Exempt Status. A. Definitions. When used in this Section, the following terms have the following meanings: Code means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. Computation Date has the meaning set forth in Section 1.148-1(b) of the Regulations. Gross Proceeds means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds. Investment has the meaning set forth in Section 1.148-1(b) of the Regulations. Nonpurpose Investment means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. Rebate Amount has the meaning set forth in Section 1.148-1(b) of the Regulations. Regulations means any proposed, temporary, or final Income Tax Regulations issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. 27732317.8 Yield of (a) any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and -46- (b) the Bonds means the yield on the Bonds, calculated in the manner set forth in Section 1.148-4 of the Regulations. B. Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. C. No Private Use or Private Payments. Except as would not cause the Bonds to become "private activity bonds" within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. D. No Private Loan. Except as would not cause the Bonds to become "private activity bonds" within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take -or -pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross 27732317.8 -47- Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. E. Not to Invest at Higher Yield. Except as would not cause the Bonds to become "arbitrage bonds" within the meaning of section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, materially exceeds the Yield of the Bonds. F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. G. Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchaser and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Bond Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount 27732317.8 -48- on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. J. Bonds Not Hedge Bonds. (1) At the time the original bonds refunded by the Bonds were issued, the City reasonably expected to spend at least 85% of the spendable proceeds of such bonds within three years after such bonds were issued. (2) Not more than 50% of the proceeds of the original bonds refunded by the Bonds were invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of four (4) years or more. (3) The District reasonably expects to spend 85% of the spendable years after the date of issuance thereof. K. Current Refunding of the Refunded Obligations. The Bonds are issued to refund the Refunded Obligations and the Bonds will be issued, and the proceeds thereof used, within 90 days after the Closing Date for the payment of the Refunded Obligations at their date of prior redemption. In the issuance of the Bonds, the City has employed no "device" to obtain a material financial advantage (based on arbitrage), within the meaning of section 149(d)(4) of the Code, apart from savings attributable to lower interest rates. The City has complied with the covenants, representations, and warranties contained in the documents executed in connection with the issuance of the Refunded Obligations L. Elections. The City hereby directs and authorizes each Authorized Official, or any combination of them, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Such elections shall be deemed to be made on the Closing Date. 27732317.8 -49- SECTION 34: Control and Custody of Bonds. The Mayor shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Bonds pending their approval by the Attorney General of the State of Texas, the registration thereof by the Comptroller of Public Accounts of the State of Texas and the delivery of the Bonds to the Purchaser. Furthermore, any of the Mayor of the City, Mayor Pro Tem of the City, any Authorized Official, or any combination of them are hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Bonds, the approval of the Attorney General and their registration by the Comptroller of Public Accounts and, together with the City's Bond Counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond to the Purchaser. SECTION 35: Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the lien on and pledge of Junior Lien Pledged Revenues made under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. The Bonds, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at Stated Maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case of a net defeasance, been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof for the Bonds. In the event of a gross defeasance of the Bonds, the City shall deliver a certificate from its financial advisor, the Paying Agent/Registrar, or another qualified third party concerning the deposit of cash and/or Government Securities to pay, when due, the principal of, redemption premium (if any), and interest due on any defeased Bonds. The City covenants that no deposit of money or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 33 hereof). Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any 27732317.8 -50- money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such money was deposited and is held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem defeased Bonds that is made in conjunction with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable, provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of that right to the owners of the defeased Bonds immediately following the defeasance; (3) directs that notice of the reservation be included in any redemption notice that it authorizes; and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased debt as though it was being defeased at the time of the exercise of the option to redeem the defeased Bonds, after taking the redemption into account in determining the sufficiency of the provisions made for the payment of the defeased Bonds. SECTION 36: Ordinance a Contract; Amendments — Outstanding Bonds. The City acknowledges that the covenants and obligations of the City herein contained are a material inducement to the purchase of the Bonds. This Ordinance shall constitute a contract with the Holders from time to time, binding on the City and its successors and assigns, and it shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required for consent to any such amendment, addition, or rescission. SECTION 37: Printed Opinion. The Purchaser's obligation to accept delivery of the Bonds is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP, as Bond Counsel, approving certain legal matters as to the Bonds, said opinion to be dated and delivered as of the date of initial delivery and payment for such Bonds. Printing of a true and correct copy of said opinion on the reverse side of each of said Bonds, with appropriate certificate pertaining thereto executed by facsimile signature of the City's Secretary is hereby approved and authorized. SECTION 38: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality 27732317.8 -51- thereof, and neither the City nor attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 39: Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 40: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Financial Advisors, the Paying Agent/Registrar, and the Holders. SECTION 41: Inconsistent Provisions. All resolutions and ordinances, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters ordained herein. SECTION 42: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 43: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 44: Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council. SECTION 45: Authorization of Paying Agent/Registrar Agreement. The City Council hereby finds and determines that it is in the best interest of the City to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, and transferability of the Bonds. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by reference to the provisions of this Ordinance. SECTION 46: Application to Texas Water Development Board. The City Council ratifies and confirms its prior approval of the form and content of the Application to the Texas Water Development Board (the Application) prepared in connection with the sale of the Bonds to the Purchaser and hereby approves the form and content of any addenda, supplement, or amendment thereto. SECTION 47: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. 27732317.8 -52- SECTION 48: Continuing Disclosure of Information. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB's Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http://www. emm a. m srb . org. MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2-12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each Fiscal Year of the City ending in or after 2016, financial information and operating data with respect to the System of the general type described in Exhibit D hereto, and (2) if not provided as part such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit D hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall file unaudited financial statements within such period and audited financial statements for the applicable Fiscal Year to the MSRB, when and if the audit report on such statements becomes available. If the City changes its Fiscal Year, it will file notice thereof with the MSRB of the change (and of the date of the new Fiscal Year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C. Notice of Certain Events. The City shall file notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) 27732317.8 Substitution of credit or liquidity providers, or their failure to perform; -53- (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of Holders of the Bonds, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional Paying Agent/Registrar or the change of name of a Paying Agent/Registrar, if material. For these purposes, any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D. Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Bonds to be no longer Outstanding. 27732317.8 -54- The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Bonds. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in 27732317.8 -55- narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. E. Information Format — Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word -searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. Financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document) available to the public through EMMA or filed with the United States Securities and Exchange Commission. SECTION 49: Book -Entry Only System. The Bonds initially shall be registered so as to participate in a securities depository system (the DTC System) with the Depository Trust Company, New York, New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Bonds shall be issued (following cancellation of the Initial Bond described in Section 7) in the form of a separate single definitive Bond. Upon issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Bonds shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit E (the Representation Letter). With respect to the Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds the Bonds from time to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds (an Indirect Participant). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Bonds, as shown on the Security Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of a Bond, of any amount with respect to principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or 27732317.8 -56- drafts being mailed to the Holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the availability within a reasonable period of time through DTC of bond certificates, and the Bonds shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. However, the City will not discontinue the use of DTC without prior notice and consent of the Purchaser for so long as the Purchaser is the Holder of any of the Bonds. At that time, the City may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Bonds may be registered in whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 50: Further Procedures. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Bonds, the Agreement, the Paying Agent/Registrar Agreement, and the Application to the Purchaser. In addition, prior to the initial delivery of the Bonds, each Authorized Official and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Bonds by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 51: Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall most effectively approximate such required publication and the giving of such notice in such 27732317.8 -57- manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 52: No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Bond. SECTION 53: Automatic Budget Amendments to Reflect Final Debt Service Payments. To the extent that the City Council has adopted an annual budget that includes payment of debt service on any Bonds issued (or to be issued) pursuant to this Ordinance based on the City's reasonable expectations and projections relative to those Bonds, such budget entries shall, upon the issuance of Bonds, be automatically adjusted to reflect actual debt service payments on those Bonds coming due during the period of time covered by such budget. Each Authorized Official, or the designee thereof, is authorized to make such necessary budget entries and/or adjustments to reflect these final debt service amounts. SECTION 54: Covenants of Compliance. The City shall faithfully and punctually perform all duties with reference to the System required by the Act, all other applicable laws of the State of Texas, and the provisions of this Ordinance and that the City shall render no free service to any customers or other persons. SECTION 55: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine, or neuter gender shall be considered to include the other genders. SECTION 56: Ancillary Bond Contracts. Though such parties may be identified, and the entry into a particular form of contract may be authorized herein, the City Council hereby delegates to each Authorized Official the authority to independently select the counterparty to any agreement with any paying agent/registrar, rating agency, securities depository, escrow agent, open market securities bidding agent, verification agent or any other contract that is determined by an Authorized Official, the City's Financial Advisor, or the City's Bond Counsel to be necessary or incidental to the issuance of the Bonds as long as each of such contracts has a value of less than the amount referenced in Section 2252.908 of the Texas Government Code (collectively, the Ancillary Bond Contracts); and, as necessary, to execute the Ancillary Bond Contracts on behalf and as the act and deed of the City. The City has not participated in the selection of any of the business entities which are counterparties to the Ancillary Bond Contracts. SECTION 57: City's Consent to Provide Information and Documentation to the Texas MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the Internal Revenue Code and which serves as a comprehensive financial information repository regarding municipal debt issuers in Texas, requires provision of written documentation regarding the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas MAC and in compliance with applicable law, the City hereby consents to and authorizes any Authorized Official, the City's Bond Counsel, and/or the City's Financial Advisor to provide to 27732317.8 -58- the Texas MAC information and documentation requested by the Texas MAC relating to the Certificates; provided, however, that no such information and documentation shall be provided prior to the Closing Date. This consent and authorization relates only to information and documentation that is a part of the public record concerning the issuance of the Bonds. SECTION 58: Effective Date. This Ordinance shall be in force and effect from and after its final passage, and it is so ordained. 27732317.8 [The remainder of this page intentionally left blank] -59- SIGNED AND SEALED THIS 28th DAY OF MARCH, 2017. CITY OF CORPUS CHRISTI, TEXAS Mayor Pro Tem ATTEST: City Secretary (SEAL) APPROVED THIS 28th DAY OF MARCH, 2017: Miles Risley, City Attorney 27732317.8 S-1 THE STATE OF TEXAS COUNTIES OF NUECES, ARANSAS, KLEBERG, AND SAN PATRICIO CITY OF CORPUS CHRISTI § § § § § § § I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 28th day of March, 2017, authorizing the issuance of the City's Utility System Junior Lien Revenue Refunding Bonds, Series 2017, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 28th day of March, 2017. 27732317.8 City Secretary (CITY SEAL) S-2 The foregoing ordinance was read for the first time and passed to its second reading on this the 21st day of March, 2017, by the following vote: Vacant Rudy Garza Carolyn Vaughn Paulette Guajardo Ben Molina Michael Hunter Lucy Rubio Joe McComb Greg Smith That the foregoing ordinance was read for the second time and passed finally on this the 28th day of March, 2017, by the following vote: Vacant Rudy Garza Carolyn Vaughn Paulette Guajardo Ben Molina Michael Hunter Lucy Rubio Joe McComb Greg Smith PASSED AND APPROVED, this the 28th day of March, 2017. ATTEST: Rebecca Huerta City Secretary 27732317.8 S-3 Lucy Rubio Mayor Pro Tem INDEX TO SCHEDULES AND EXHIBITS Schedule I Schedule of Refunded Obligations Exhibit A Paying Agent/Registrar Agreement Exhibit B Agreement Exhibit C Notice of Redemption Exhibit D Description of Annual Financial Information Exhibit E DTC Letter of Representations 27732317.8 S-4 SCHEDULE I Schedule of Refunded Obligations "City of Corpus Christi, Texas Utility System Variable Rate Junior Lien Revenue Improvement Bonds, Series 2015B", dated March 1, 2015, in the original principal amount of $49,585,000 and maturing on July 15, 2045 in the aggregate principal amount of $49,585,000. The redemption date for these Refunded Obligations is May 1, 2017. 27732317.8 Schedule I-1 27732317.8 EXHIBIT A Paying Agent/Registrar Agreement See Tab No. A-1 27732317.8 EXHIBIT B Agreement See Tab No. B-1 27732317.8 EXHIBIT C Notice of Redemption See Tab No. C-1 27732317.8 EXHIBIT D Notice of Redemption See Tab No. D-1 EXHIBIT E Description of Annual Financial Information The following information is referred to in Section 48 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The City's audited financial statements for the most recently concluded Fiscal Year or to the extent these audited financial statements are not available, unaudited financial statements of the City for the most recently concluded Fiscal Year. 2. Tables 1 through 23 contained in the Official Statement; and the Audited Financial Statement of the City, as set forth in Appendix B relating to the City's Utility System Junior Lien Revenue Refunding Bonds, Series 2016 Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to above. 27732317.8 E-1 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 8, 2017 TO: Margie C. Rose, City Manager THRU: Sylvia Carrillo, Assistant City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP@cctexas.com (361) 826-3227 Refunding of Choke Canyon Debt CAPTION: Ordinance authorizing the issuance of "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds", as further designated by series and lien priority of revenue pledge, in an amount not to exceed $77,520,000; making provisions for the payment and security thereof by a lien on and pledge of the net revenues of the City's Utility System which may be on a parity with certain currently outstanding Utility System revenue obligations; stipulating the terms and conditions for the issuance of additional revenue bonds on a parity therewith; prescribing the form, terms, conditions, and resolving other matters incident and related to the issuance, sale and delivery of the bonds; including the approval and distribution of an official statement pertaining thereto; authorizing the execution of one or more paying agent/registrar agreements, escrow agreements, and a purchase contracts; complying with the requirements imposed by the letter of representations previously executed with the depository trust company; delegating the authority to certain members of the City staff to execute certain documents relating to the sale of the bonds; and providing an effective date. PURPOSE: The City plans on refunding for savings Utility System revenue obligations related to Choke Canyon Dam, as well as any callable, outstanding Utility System Revenue Bonds in an amount not to exceed $77,520,000 BACKGROUND AND FINDINGS: In 1976, the U.S. Department of the Interior, through the Bureau of Reclamation (the Bureau), constructed a 700,000 acre feet dam on the Frio River, known as the Choke Canyon Dam (the Project). The City and the Nueces River Authority (the Authority) were local sponsors of the Project and entered into an agreement with the Bureau to provide a portion of the funds necessary to construct the dam (cost of water supply rights). The dam site remained the property of the Bureau although the City and Authority have the right, in perpetuity, to impound 80% and 20% respectively, of the water in the Project's reservoir. Pursuant to a separate agreement between the City and the Authority, the City, in exchange for certain services, pays the Authority $100,000 per calendar year plus additional sums for water used as specified in the agreement. The note payable to the Bureau to fund the Project had an escalating debt service schedule with low payments in the first several years. In 1987 the City Council established an annuity (i.e. "Reserved for Choke Canyon" account) to levelize the payments from the Water Fund to the Bureau for the Choke Canyon debt. In the initial years of the note, payments of $3,245,000, which were greater than the actual debt service payment to the Bureau from the Water Fund, were made, with the excess going into the reserve fund. This excess was paid through a rate surcharge on inside city -limit (ICL) and outside city -limit (OCL) metered treated water customers (ratepayers.) Now that the actual debt service payments are higher, the annuity is used to maintain the level payments in the Water Fund at an annual amount of $1,124,525. Credit for the reserve draw -downs is only applied to the raw water cost adjustment for ratepayers. The balance in the reserve account should be depleted by 2044 — when the last debt service payment is made. As of September 30, 2016, the balance in this account is was $13,631,530. This balance can only be used to pay the Choke Canyon debt. The interest rate for this debt is 5.116%. This agenda item will lower the interest rate to a true interest cost of approximately 2.7% and will produce a net present value savings of approximately $9.1 million over the life of the debt. This equates to a savings to the Water Fund of approximately $1.4 million for Fiscal Year 2017 and then approximately $670,000 thereafter. Additionally, $27,535,000 of callable bonds from the Series 2005 Utility System Revenue Refunding Bonds have been identified for refunding if the market permits on the day of pricing. This refunding is anticipated to produce a net present value savings of $1.9 million or 7.0%. This equates to a savings for the Water Fund of approximately $700,000 in Fiscal Year 2017, and $400,000 over the next 3 years. ALTERNATIVES: Take no action. OTHER CONSIDERATIONS: Not applicable FINANCIAL IMPACT: ❑ Not Applicable ❑ Operating Expense X Revenue X CIP FISCAL YEAR: Project to Date Exp. Current Year Future Years TOTALS (CIP Only) Budget - - - - Encumbered/Expended amount of (date) - - - - This item - $ 77,520,000 - $ 77,520,000 BALANCE - $ 77,520,000 - $ 77,520,000 FUND(S): Water Fund COMMENTS: Not applicable RECOMMENDATION: Staff recommends approval of the ordinance as presented. CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: • Financial Services • Bond Counsel • City Attorney's Office LIST OF SUPPORTING DOCUMENTS: Ordinance ORDINANCE NO. DRAFT 3/9/17 AUTHORIZING THE ISSUANCE OF "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM REVENUE REFUNDING BONDS", AS FURTHER DESIGNATED BY SERIES AND LIEN PRIORITY OF REVENUE PLEDGE, IN AN AMOUNT NOT TO EXCEED $77,520,000; MAKING PROVISIONS FOR THE PAYMENT AND SECURITY THEREOF BY A LIEN ON AND PLEDGE OF THE NET REVENUES OF THE CITY'S UTILITY SYSTEM WHICH MAY BE ON A PARITY WITH CERTAIN CURRENTLY OUTSTANDING UTILITY SYSTEM REVENUE OBLIGATIONS; STIPULATING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF ADDITIONAL REVENUE BONDS ON A PARITY THEREWITH; PRESCRIBING THE FORM, TERMS, CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE BONDS; INCLUDING THE APPROVAL AND DISTRIBUTION OF AN OFFICIAL STATEMENT PERTAINING THERETO; AUTHORIZING THE EXECUTION OF ONE OR MORE PAYING AGENT/REGISTRAR AGREEMENTS, ESCROW AGREEMENTS, AND PURCHASE CONTRACTS; COMPLYING WITH THE REQUIREMENTS IMPOSED BY THE LETTER OF REPRESENTATIONS PREVIOUSLY EXECUTED WITH THE DEPOSITORY TRUST COMPANY; DELEGATING THE AUTHORITY TO CERTAIN MEMBERS OF THE CITY STAFF TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE BONDS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council (the City Council) of the City of Corpus Christi, Texas (the City) has heretofore entered into that certain Federal Contract numbered 6-07-01-X0675 by and among the United States of America, the City and the Nueces River Authority, dated June 30, 1976, and amended on June 16, 1980, with respect to the Nueces River Reclamation Project (the Federal Contract), under which the City has incurred payment obligations in the form of principal and interest that are secure by a subordinate and inferior lien on and pledge of the Net Revenues (as hereinafter defined) of the City's combined utility systems (as further described and defined herein, the System); and WHEREAS, the City Council has heretofore issued and there are currently outstanding revenue bonds secured by a first and prior lien on and pledge of the Net Revenues of the System (the Refunded Bonds, and together with the Federal Contract, the Refunded Obligations); and WHEREAS, the Refunded Obligations, as further described in Schedule I hereto, are currently outstanding in the aggregate principal amount of $ ; and WHEREAS, the City Council has heretofore issued, and there are currently outstanding revenue bonds (the Previously Issued Junior Lien Obligations) secured by a lien on and pledge 27638142.12 of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds (as hereinafter defined); and WHEREAS, in the City ordinances authorizing the issuance of the Previously Issued Junior Lien Obligations, the City reserved the right to issue revenue bonds on a parity with the Junior Lien Obligations (as hereinafter defined) from time to time outstanding; and WHEREAS, the City Council has determined for the purpose of improving the credit quality of its Junior Lien Obligations, which has become its primary lien for issuing System debt, that it will no longer issue obligations secured by a first and prior lien on and pledge of the Net Revenues of the System referred to herein as "Priority Bonds", on parity with the lien thereon and pledge thereof securing the Previously Issued Priority Bonds, for new money purposes and, at such time as no Priority Bonds remain outstanding, all System revenue obligations now subordinate and inferior to the Priority Bonds in priority of lien on and pledge of Net Revenues shall be elevated in kind in priority of lien and payment so that when there are no longer any Priority Bonds outstanding, the Junior Lien Obligations (defined herein) will enjoy a first and prior lien on and pledge of the Net Revenues of the System; and WHEREAS, pursuant to the provisions of Chapter 1207, as amended, Texas Government Code, as amended (Chapter 1207), the City Council is authorized to issue revenue refunding bonds and deposit the proceeds of sale under an escrow agreement to provide for the payment of the Refunded Obligations, and such deposit, when made in accordance with the Act, shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and WHEREAS, Chapter 1207 requires that the deposit of the proceeds from the sale of the revenue refunding bonds be deposited directly with any designated escrow agent for the Refunded Obligations that is not the depository bank of the City; and WHEREAS, The Bank of New York Mellon Trust Company, N.A., Dallas, Texas, which is not a depository bank of the City, is appointed and will serve as the Paying Agent/Registrar (hereinafter defined) and Escrow Agent (hereinafter defined) for the revenue refunding bonds; and WHEREAS, the City Council also hereby finds and determines that the Refunded Obligations are scheduled to mature or are subject to being redeemed, not more than twenty (20) years from the date of the Bonds herein authorized and such refunding will result in a net present value savings of approximately $ ( %) to the City and a gross savings of $ , including the cash contribution of $ , WHEREAS, the revenue refunding bonds hereinafter authorized are to be issued and delivered pursuant to the laws of the State of Texas, including the Act (defined herein), and the terms of this Ordinance (as hereinafter defined), for the purposes set forth in this Ordinance; and now therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: 27638142.12 -2- SECTION 1: Authorization - Designation - Principal Amount - Purpose. Revenue refunding bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of AND NO/100 DOLLARS ($ ), to be designated and bear the title of CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017A (the Bonds), pursuant to this ordinance adopted by the City Council (the Ordinance) for the purpose of (i) discharging and making final payment of the Refunded Obligations, and (ii) paying the costs of issuance relating thereto. The Bonds shall be payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations. The Bonds are authorized to be issued pursuant to the authority conferred by and in conformity with the laws of the State of Texas, including, particularly, Chapter 1207 and Chapter 1371, as amended, Texas Government Code (Chapter 1371 and, together with Chapter 1207, the Act). As authorized by the Act, each Authorized Official is hereby authorized, appointed, and designated as the officers of the City authorized to individually act on behalf of the City in selling and delivering, in one or more series, the Bonds authorized herein and carrying out the procedures specified in this Ordinance, including approval of the aggregate principal amount of each maturity of the Bonds (referenced to and defined herein as the Purchasers), the redemption provisions therefor, the rate of interest to be borne on the principal amount of each such maturity, the identification of an underwriter or underwriting syndicate for the Bonds, the priority of the lien on and pledge of the Net Revenues securing each series of Bonds (whether issued as Additional Junior Lien Obligations or Subordinate Lien Obligations), selection of the provider of a policy of municipal bond issuances securing the repayment of principal of and interest on any series of Bonds (if any), selection of a Credit Provider to provide a Credit Facility to satisfy any debt service reserve fund requirement relating to any series of Bonds, of any, and authority to finalize, enter into, and execute a Credit Agreement, in substantially the form attached hereto as Exhibit F, in connection therewith, and selection from the Refunding Candidates of the Refunded Obligations to be refunded from the proceeds of the Bonds. Each Authorized Official, acting for and on behalf of the City, is authorized to execute the Approval Certificate (defined herein) attached hereto as Schedule I. In addition, each Authorized Official may further designate each series of Bonds hereunder issued by year of issue, lien priority of Net Revenue Pledge, and sequential order of issuance. The Bonds shall be issued in the principal amount not to exceed $77,520,000; the maximum maturity of the Bonds will be July 15, 2045, the refunding will result in a net present value savings of at least 3.00%, and the true interest rate (federal arbitrage yield) shall not exceed a rate greater than 6.00% per annum calculated in a manner consistent with the provisions of Chapter 1204, as amended, Texas Government Code. As stated above, each Authorized Official is authorized to select the bond insurer and/or debt service reserve fund surety provider, if any, with respect to the Bonds. If the Authorized Official chooses to purchase a debt service reserve surety policy or similar credit facility relating to the Bonds, then the Authorized Official shall be permitted to execute an insurance or similar reimbursement agreement in the form of a Credit Agreement and in substantially the form attached hereto as Exhibit F (which form is hereby approved) in connection with such purchase. The execution of an Approval Certificate relating to the Bonds issued hereunder shall evidence the sale date of the 27638142.12 -3- Bonds by the City to the Purchasers in accordance with the provisions of Chapter 1371. It is further provided, however, that notwithstanding the foregoing provisions, no Bonds shall be delivered unless prior to their initial delivery unless rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for long term obligations, as required by Chapter 1371. Upon execution of the Approval Certificate, Bond Counsel is authorized to complete this Ordinance to reflect such final terms. SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated Maturities - Interest Rates - Dated Date. The Bonds are issuable in fully registered form only; shall be dated , 2017 (the Dated Date); shall be in denominations of $5,000 or any integral multiple thereof, shall be lettered "R-" and numbered consecutively from One (1) upward and principal shall become due and payable on July 15 in each of the years and in principal amounts (the Stated Maturities) and bear interest on the unpaid principal amounts from the Dated Date, or the most recent Interest Payment Date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the rates per annum in accordance with the following schedule: Years of Stated Maturity (July 15) 27638142.12 Principal Interest Amounts ($) Rates (%) -4- SECTION 3: Payment of Bonds - Interest Payments - Paying Agent/Registrar. The principal of, premium, if any, and interest on the Bonds, due and payable by reason of Stated Maturity, redemption, or otherwise, shall be payable in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts, and such payment of principal of and interest on the Bonds shall be without exchange or collection charges to the Holder (as hereinafter defined) of the Bonds. The Bonds shall bear interest on the unpaid principal amount thereof at the per annum rates shown above in Section 2, computed on the basis of a 360 -day year of twelve 30 -day months, and interest thereon shall be payable semiannually on January 15 and July 15 of each year (each, an Interest Payment Date), commencing July 15, 2017, while the Bonds are Outstanding. The selection and appointment of The Bank of New York Mellon Trust Company, N.A., Dallas, Texas, to serve as the initial Paying Agent/Registrar (the Paying Agent/Registrar) for the Bonds is hereby approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at the corporate trust office of the Paying Agent/Registrar books and records (the Security Register) for the registration, payment, and transfer of the Bonds, all as provided herein, in accordance with the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final form, as Exhibit A hereto, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are Outstanding, and any successor Paying Agent/Registrar shall be (i) a national or state banking institution or (ii) an association or a corporation organized and doing business under the laws of the United States of America or of any state, authorized under such laws to exercise trust powers. Such Paying Agent/Registrar shall be subject to supervision or examination by federal or state authority and authorized by law to serve as a Paying Agent/Registrar. The City reserves the right to appoint a successor Paying Agent/Registrar upon providing the previous Paying Agent/Registrar with a certified copy of a resolution or ordinance terminating such agency. Additionally, the City agrees to promptly cause a written notice of this substitution to be sent to each Holder of the Bonds by United States mail, first-class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Both principal of, premium, if any, and interest on the Bonds, due and payable by reason of Stated Maturity, redemption or otherwise, shall be payable only to the registered owner of the Bonds appearing on the Security Register (the Holder or Holders) maintained on behalf of the City by the Paying Agent/Registrar as hereinafter provided (i) on the Record Date (defined herein) for purposes of payment of interest thereon and (ii) on the date of surrender of the Bonds for purposes of receiving payment of principal thereof at the Bonds' Stated Maturity or upon prior redemption of the Bonds. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder as the owner of a Bond for purposes of receiving payment and all other purposes whatsoever, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. Principal of, and premium, if any, on the Bonds shall be payable only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its corporate trust office. Interest on 27638142.12 -5- the Bonds shall be paid to the Holder whose name appears in the Security Register at the close of business on the last business day of the month next preceding an Interest Payment Date for the Bonds (the Record Date) and shall be paid (i) by check sent by United States mail, first-class postage prepaid, by the Paying Agent/Registrar, to the address of the Holder appearing in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested in writing by the Holder at the Holder's risk and expense. If the date for the payment of the principal of, premium, if any, or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a day. The payment on such date shall have the same force and effect as if made on the original date any such payment on the Bonds was due. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. A. Mandatory Redemption. The Bonds stated to mature on July 15, 20 are referred to herein as the "Term Bonds". The Term Bonds are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Bond Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on July 15 in each of the years as set forth below: Term Bonds Stated to Mature on July 15, 20 Principal Year Amount ($) *Payable at Stated Maturity. The principal amount of a Term Bond required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior 27638142.12 -6- to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City with money in the Bond Fund, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. B. Optional Redemption. The Bonds having Stated Maturities on and after July 15, 20 shall be subject to redemption prior to Stated Maturity, at the option of the City, on July 15, 20, or any date thereafter, as a whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar), at the redemption price of par plus accrued interest to the date of redemption. C. Exercise of Redemption Option. At least forty-five (45) days prior to a date set for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the City Council. D. Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall select at random and by lot the Bonds to be redeemed, provided that if less than the entire principal amount of a Bond is to be redeemed, the Paying Agent/Registrar shall treat such Bond then subject to redemption as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bond by $5,000. E. Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first-class postage prepaid, in the name of the City and at the City's expense, by the Paying Agent/Registrar to each Holder of a Bond to be redeemed, in whole or in part, at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Bond (or the principal amount thereof to be redeemed) so called for redemption shall become due and payable, and if money sufficient for the payment of such Bonds (or of the principal amount thereof to be redeemed) at the then applicable 27638142.12 -7- redemption price is held for the purpose of such payment by the Paying Agent/Registrar, then on the redemption date designated in such notice, interest on said Bonds (or the principal amount thereof to be redeemed) called for redemption shall cease to accrue, and such Bonds shall not be deemed to be Outstanding in accordance with the provisions of this Ordinance. This notice may also be published once in a financial publication, journal, or reporter of general circulation among securities dealers in the City of New York, New York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of Texas (including, but not limited to, The Texas Bond Reporter). F. Transfer/Exchange. Neither the City nor the Paying Agent/Registrar shall be required (i) to transfer or exchange any Bond during a period beginning forty-five (45) days prior to the date fixed for redemption of the Bonds or (ii) to transfer or exchange any Bond selected for redemption, provided; however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond which is subject to redemption in part. SECTION 5: Execution - Registration. The Bonds shall be executed on behalf of the City by its Mayor or Mayor Pro Tem, its seal reproduced or impressed thereon, and attested by the City Secretary. The signature of either officer on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who were, at the time of the Dated Date, the proper officers of the City shall bind the City, notwithstanding that such individuals or either of them shall cease to hold such offices prior to the delivery of the Bonds to the Purchasers (defined herein), all as authorized and provided in Chapter 1201, as amended, Texas Government Code. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 8C, executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent by manual signature, or a certificate of registration substantially in the form provided in Section 8D, executed by the Paying Agent/Registrar by manual signature, and either such certificate upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified or registered and delivered. SECTION 6: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of every owner of the Bonds, or, if appropriate, the nominee thereof. Any Bond may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of any Bond at the corporate trust office of the Paying Agent/Registrar, the City shall execute and the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized 27638142.12 -8- denomination and having the same Stated Maturity and of a like interest rate and aggregate principal amount as the Bond or Bonds surrendered for transfer. At the option of the Holder, Bonds may be exchanged for other Bonds of the same series and of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange upon surrender of the Bonds to be exchanged at the corporate trust office of the Paying Agent/Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute, and the Paying Agent/Registrar shall register and deliver, the Bonds, to the Holder requesting the exchange. All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the corporate trust office of the Paying Agent/Registrar, or be sent by registered mail to the Holder at his request, risk, and expense, and upon the delivery thereof, the same shall be the valid and binding obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered upon such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any fee, tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be Predecessor Bonds, evidencing all or a portion, as the case may be, of the same debt evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term Predecessor Bonds shall include any Bond registered and delivered pursuant to Section 27 in lieu of a mutilated, lost, destroyed, or stolen Bond which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. SECTION 7: Initial Bond. The Bonds herein authorized shall be issued initially either (i) as a single fully -registered Bond in the total principal amount of $ with principal installments to become due and payable as provided in Section 2 and numbered T-1, or (ii) as one (1) fully -registered Bond for each year of Stated Maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (the Initial Bond) and, in either case, the Initial Bond shall be registered in the name of the initial purchasers or the designee thereof. The Initial Bond shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchasers. Any time after the delivery of the Initial Bond, the Paying Agent/Registrar shall cancel the Initial Bond delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchasers, or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. 27638142.12 -9- SECTION 8: Forms. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including insurance legends in the event the Bonds, or any Stated Maturities thereof, are insured and identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of an opinion of Bond Counsel (hereinafter referenced)) thereon as may, consistent herewith, be established by the City or determined by the officers executing the Bonds as evidenced by their execution thereof. Any portion of the text of any Bond may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds shall be printed, lithographed, or engraved, produced by any combination of these methods, or produced in any other similar manner, all as determined by the officers executing the Bonds as evidenced by their execution thereof, but the Initial Bond submitted to the Attorney General of Texas may be typewritten or photocopied or otherwise reproduced. 27638142.12 [The remainder of this page intentionally left blank] -10- B. Form of Definitive Bond. REGISTERED REGISTERED PRINCIPAL AMOUNT NO. $ United States of America State of Texas Counties of Nueces, Aransas, Kleberg, and San Patricio CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017A Dated Date: , 2017 REGISTERED OWNER: Interest Rate: Stated Maturity: CUSIP NO: PRINCIPAL AMOUNT: DOLLARS The City of Corpus Christi, Texas (the City), a body corporate and a municipal corporation located in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner specified above, or the registered assigns thereof, on the Stated Maturity date specified above, the Principal Amount specified above (or so much thereof as shall not have been paid upon prior redemption), and to pay interest on the unpaid Principal Amount hereof from the Dated Date or from the most recent interest payment date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of 30 -day months; such interest being payable on January 15 and July 15 of each year (each, an Interest Payment Date), commencing July 15, 2017. Principal and premium, if any, of the Bond shall be payable to the Registered Owner hereof (the Holder) upon presentation and surrender, at the corporate trust office of the Paying Agent/Registrar executing the registration certificate appearing hereon or a successor thereof. Interest shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the last business day of the month next preceding each interest payment date. All payments of principal of and interest on this Bond shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on the appropriate date of payment by United States Mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by the Holder hereof at the Holder's risk and expense. 27638142.12 -11- This Bond is one of the series specified in its title issued in the aggregate principal amount of $ (the Bonds) pursuant to an ordinance adopted by the governing body of the City (the Ordinance), for the purpose of (i) discharging and making final payment of the Refunded Obligations, and (ii) paying the costs of issuance relating thereto, all in conformity with the laws of the State of Texas, particularly the City's Home Rule Charter and the Act, and the Ordinance. The Bonds shall be payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations. The Bonds stated to mature on July 15, 20 are referred to herein as the "Term Bonds". The Term Bonds are subject to mandatory sinking fund redemption prior to their stated maturities from money required to be deposited in the Bond Fund for such purpose and shall be redeemed in part, by lot or other customary method, at the principal amount thereof plus accrued interest to the date of redemption in the following principal amounts on July 15 in each of the years as set forth below: Term Bonds Stated to Mature on July 15, 20 Principal Year Amount ($) *Payable at Stated Maturity. The principal amount of a Term Bond required to be redeemed pursuant to the operation of such mandatory redemption provisions shall be reduced, at the option of the City, by the principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior to the mandatory redemption date (1) shall have been defeased or acquired by the City and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the City with money in the Bond Fund, or (3) shall have been redeemed pursuant to the optional redemption provisions set forth below and not theretofore credited against a mandatory redemption requirement. The Bonds stated to mature on and after July 15, 20 may be redeemed prior to their Stated Maturities, at the option of the City, on July 15, 20 or on any date, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity selected at random and by lot by the Paying Agent/Registrar) at the redemption price of par, together with accrued interest to the date of redemption, and upon thirty (30) days prior written notice being given by United States mail, first-class postage prepaid, to Holders of the Bonds to be redeemed, and subject to the terms and provisions relating thereto contained in the Ordinance. If this Bond is subject to redemption prior to Stated Maturity and is in a denomination in excess of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple 27638142.12 -12- thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there shall be issued, without charge therefor, to the Holder hereof, upon the surrender of this Bond to the Paying Agent/Registrar at its corporate trust office, a new Bond or Bonds of like Stated Maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Bond (or any portion of the principal sum hereof') shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and, if money for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption is held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable hereon from and after the redemption date on the principal amount hereof to be redeemed. In the event of a partial redemption of the principal amount of this Bond, payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of this Bond to the corporate trust office of the Paying Agent/Registrar and, there shall be issued to the registered owner hereof, without charge, a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided in the Ordinance for the then unredeemed balance of the principal sum hereof. If this Bond is called for redemption, in whole or in part, the City or the Paying Agent/Registrar shall not be required to issue, transfer, or exchange this Bond within forty-five (45) days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Holder of the unredeemed balance hereof in the event of its redemption in part. The Bonds of this series are special obligations of the City, issued as Junior Lien Obligations, payable from and equally and ratably secured by a lien on and pledge of the Junior Lien Pledged Revenues, being (primarily) a lien on and pledge of the Net Revenues derived from the operation of the City's utility system (as further described in the Ordinance, the System), that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations. In the Ordinance, the City reserves and retains the right to issue Additional Priority Bonds (but not for "new money" purposes), Additional Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations without limitation as to principal amount but subject to any terms, conditions, or restrictions set forth in the Ordinance or as may be applicable thereto under law or otherwise. The Bonds do not constitute a legal or equitable pledge, charge, lien, or encumbrance upon any property of the City or System, except with respect to the Junior Lien Pledged Revenues. The Holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation. Reference is hereby made to the Ordinance, a copy of which is on file in the corporate trust office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by his acceptance hereof hereby assents, for definitions of terms; the description and nature of the Junior Lien Pledged Revenues pledged for the payment of the Bonds; the terms and conditions under which the City may issue Additional Priority Bonds (but not for "new money" purposes), Additional Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations; 27638142.12 -13- the terms and conditions relating to the transfer or exchange of the Bonds; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be redeemed or discharged at or prior to the Stated Maturity thereof, and deemed to be no longer Outstanding thereunder; and for the other terms and provisions specified in the Ordinance. Capitalized terms used herein have the same meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register upon presentation and surrender at the corporate trust office of the Paying Agent/Registrar, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by the Holder hereof, or his duly authorized agent, and thereupon one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the Holder hereof whose name appears on the Security Register (i) on the Record Date as the owner hereof for purposes of receiving payment of interest hereon, (ii) on the date of surrender of this Bond as the owner hereof for purposes of receiving payment of principal hereof at its Stated Maturity, or its redemption, in whole or in part, and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the Paying Agent/Registrar, or any such agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a Special Record Date) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the Special Payment Date - which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, covenanted, and represented that all acts, conditions, and things required to be performed, exist, and be done precedent to the issuance of this Bond in order to render the same a legal, valid, and binding special obligation of the City have been performed, exist, and have been done, in regular and due time, form, and manner, as required by law, and that issuance of the Bonds does not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by a pledge of and lien on the Junior Lien Pledged Revenues. In case any provision in this Bond or any application thereof shall be deemed invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 27638142.12 [The remainder of this page intentionally left blank] -14- IN WITNESS WHEREOF, this Bond has been signed with the imprinted or lithographed facsimile signature of the Mayor of the City, attested by the imprinted or lithographed facsimile signature of the City Secretary, and the official seal of the City has been duly affixed to, printed, lithographed or impressed on this Bond. CITY OF CORPUS CHRISTI, TEXAS ATTEST: City Secretary (SEAL) 27638142.12 Mayor [The remainder of this page intentionally left blank] -15- C. Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Bond Only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS THE STATE OF TEXAS § § § § REGISTER NO. I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) * Bond to Printer: Not to appear on printed Bonds D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds Only. CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued under the provisions of the within -mentioned Ordinance; the Bond or Bonds of the above -entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. Registered this date: * Bond to Printer: to appear on printed Bonds 27638142.12 -16- THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., Dallas, Texas as Paying Agent/Registrar By: Authorized Signature E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): (Social Security or other identifying number): the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular. Signature guaranteed: 27638142.12 [The remainder of this page intentionally left blank.] -17- F. Form of Initial Bond. The Initial Bond shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Bond shall be modified as follows: (1) immediately under the name of the Bond(s) the headings "Interest Rate" and "Stated Maturity" shall both be completed "as shown below"; (2) the first two paragraphs shall read as follows: REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Corpus Christi, Texas (the City), a body corporate and a municipal corporation located in the Counties of Nueces, Aransas, Kleberg, and San Patricio, State of Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount specified above on the fifteenth day of July in each of the years and in principal amounts and bearing interest at per annum rates in accordance with the following schedule: Years of Principal Interest Stated Maturity Amounts ($) Rates (%) (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid Principal Amount hereof from the Dated Date, or from the most recent interest payment date to which interest has been paid or duly provided for, to the earlier of redemption or Stated Maturity, at the per annum rate of interest specified above computed on the basis of a 360 -day year of 30 -day months; such interest being payable on January 15 and July 15 of each year (each, an Interest Payment Date), commencing July 15, 2017. Principal of this Bond shall be payable to the Registered Owner hereof (the Holder), upon its presentation and surrender, at the corporate trust office of The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the Paying Agent/Registrar). Interest shall be payable to the Holder of this Bond whose name appears on the Security Register maintained by the Paying Agent/Registrar at the close of business on the Record Date, which is the last business day of the month next preceding each interest payment date. All payments of principal of and interest on this Bond shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Interest shall be paid by the Paying Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail, first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder hereof. 27638142.12 -18- G. Insurance Legend. If bond insurance is obtained by the Purchasers or the City for the Bonds, the definitive Bonds and the Initial Bond shall bear an appropriate legend as provided by the insurer. SECTION 9: Definitions. For all purposes of this Ordinance (as defined below), except as otherwise expressly provided or unless the context otherwise requires: (i) the terms defined in this Section have the meanings assigned to them in this Section, and certain terms used in Sections 32 and 46 of this Ordinance have the meanings assigned to them in such Sections, and all such terms include the plural as well as the singular; (ii) all references in this Ordinance to designated "Sections" and other subdivisions are to the designated Sections and other subdivisions of this Ordinance as originally adopted; and (iii) the words "herein", "hereof', and "hereunder" and other words of similar import refer to this Ordinance as a whole and not to any particular Section or other subdivision. A. The term Accountant shall mean a nationally recognized independent certified public accountant, or an independent firm of certified public accountants. B. The term Additional Junior Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Junior Lien Pledged Revenues, such pledge to include a pledge of Net Revenues that is junior and inferior to the lien on and pledge of the Net Revenues that are or will be pledged to the payment of the Priority Bonds now Outstanding or hereafter issued by the City but senior and superior to the lien thereon and pledge thereof that is or will be pledged to the payment of the Subordinate Lien Obligations and the Inferior Lien Obligations now Outstanding or hereafter issued by the City, and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, as determined by the City Council in accordance with applicable law. C. The term Additional Priority Bonds shall mean any obligations hereafter issued to refund any of the Previously Issued Priority Bonds if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law and under the terms and conditions provided in Section 19 of this Ordinance. D. The term Approval Certificate shall mean a written instrument from time to time executed by an Authorized Official in accordance with Section 1 of this Ordinance. E. The term Authorized Official shall mean the City Manager of the City, the Assistant City Manager of the City, and the City's Director of Financial Services (which shall include any person serving in any of the foregoing capacities on an interim or non -permanent basis). F. The term Average Annual Debt Service Requirements shall mean that average amount which, at the time of computation, will be required to pay the Debt Service Requirements of obligations when due and derived by dividing the total of such Debt Service Requirements by the number of years then remaining before final Stated Maturity. The 27638142.12 -19- calculation of Average Annual Debt Service Requirements shall be net of (1) capitalized interest from bond proceeds and (2) the receipt or anticipated receipt of a refundable tax credit or similar payment relating to a series of Junior Lien Obligations irrevocably designated as refundable tax credit bonds, which payment shall be treated as one offset to regularly scheduled debt service of the series of Junior Lien Obligations to which it relates. G. The term Bonds shall mean the $ "CITY OF CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017A", dated , 201, authorized by this Ordinance. H. The term Bond Fund shall mean the special Fund or account created and established by the provisions of Section 13 of this Ordinance. L The term Capital Additions shall mean a reservoir or other water storage facilities, a water or wastewater treatment plant or an interest therein, an electric generation facility and/or distribution system or an interest therein, a gas distribution system or an interest therein and associated transmission facilities with respect to each and any combination thereof, which shall become a part of the System. J. The term Capital Improvements shall mean any capital extensions, improvements and betterments to the System other than Capital Additions. K. The term City shall mean the City of Corpus Christi, Texas and, where appropriate, the City Council of the City. L. The term Closing Date shall mean the date of physical delivery of the Initial Bonds in exchange for the payment in full by the Purchasers. M. The term Credit Agreement shall mean a loan agreement, revolving credit agreement, agreement establishing a line of credit, letter of credit, reimbursement agreement, insurance contract, commitments to purchase Debt, purchase or sale agreements, interest rate swap agreements, or commitments or other contracts or agreements authorized, recognized, and approved by the City as a Credit Agreement in connection with the authorization, issuance, security, or payment of any obligation authorized by Chapter 1371, and which includes any Credit Facility. N. The term Credit Facility shall mean (i) a policy of insurance or a surety bond, issued by an issuer of policies of insurance insuring the timely payment of debt service on governmental obligations, or (ii) a letter or line of credit issued by any financial institution. O. The term Credit Provider shall mean any bank, financial institution, insurance company, surety bond provider, or other institution which provides, executes, issues, or otherwise is a party to or provider of a Credit Agreement or Credit Facility. P. The term Debt shall mean (1) all indebtedness payable from Net Revenues and/or Junior Lien Pledged Revenues incurred or assumed by the City for borrowed money (including indebtedness 27638142.12 -20- payable from Net Revenues and/or Junior Lien Pledged Revenues arising under Credit Agreements) and all other financing obligations of the System payable from Net Revenues and/or Junior Lien Pledged Revenues that, in accordance with generally accepted accounting principles, are shown on the liability side of a balance sheet; and (2) all other indebtedness payable from Junior Lien Pledged Revenues and/or Net Revenues (other than indebtedness otherwise treated as Debt hereunder) for borrowed money or for the acquisition, construction, or improvement of property or capitalized lease obligations pertaining to the System that is guaranteed, directly or indirectly, in any manner by the City, or that is in effect guaranteed, directly or indirectly, by the City through an agreement, contingent or otherwise, to purchase any such indebtedness or to advance or supply funds for the payment or purchase of any such indebtedness or to purchase property or services primarily for the purpose of enabling the debtor or seller to make payment of such indebtedness, or to assure the owner of the indebtedness against loss, or to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether or not such property is delivered or such services are rendered), or otherwise. For the purpose of determining Debt, there shall be excluded any particular Debt if, upon or prior to the maturity thereof, there shall have been deposited with the proper depository (a) in trust the necessary funds (or investments that will provide sufficient funds, if permitted by the instrument creating such Debt) for the payment, redemption, or satisfaction of such Debt or (b) evidence of such Debt deposited for cancellation; and thereafter it shall not be considered Debt. No item shall be considered Debt unless such item constitutes indebtedness under generally accepted accounting principles applied on a basis consistent with the financial statements of the System in prior Fiscal Years. Q. The term Debt Service Requirements shall mean, as of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the City as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear interest calculated by assuming (i) that the interest rate for every 12 -month period on such bonds is equal to the rate of interest reported in the most recently published edition of The Bond Buyer (or its successor) at the time of calculation as the "Revenue Bond Index" or, if such Revenue Bond Index is no longer being maintained by The Bond Buyer (or its successor) at the time of calculation, such interest rate shall be assumed to be 80% of the rate of interest then being paid on United States Treasury obligations of like maturity and (ii) that, in the case of bonds not subject to fixed scheduled mandatory sinking fund redemptions, that the principal of such bonds is amortized such that annual debt service is substantially level over the remaining stated life of such bonds or in the manner permitted under Section 1371.057(c), as amended, Texas Government Code as the same relates to interim or non—permanent indebtedness, and in the case of obligations required to be redeemed or prepaid as to principal prior to Stated Maturity according to a fixed schedule, the principal amounts thereof will be redeemed prior to Stated Maturity in accordance with the mandatory redemption provisions applicable thereto (in each case notwithstanding any contingent obligation to redeem bonds more rapidly). For the term of any Credit Agreement in the form of an interest rate hedge agreement entered into in connection 27638142.12 -21- with any such obligations, Debt Service Requirements shall be computed by netting the amounts payable to the City under such hedge agreement from the amounts payable by the City under such hedge agreement and such obligations. R. The term Depository shall mean an official depository bank of the City. S. The term Engineer shall mean an individual, firm, or corporation engaged in the engineering profession, being a registered professional engineer under the laws of the State of Texas, having specific experience with respect to a combined municipal utility system similar to the System and such individual, firm, or corporation may be employed by, or may be an employee of, the City. T. The term Fiscal Year shall mean the twelve month accounting period used by the City in connection with the operation of the System which may be any twelve consecutive month period established by the City, presently being that period commencing on October 1 of each year and ending on the following September 30. U. The term Government Securities as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America, and (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. When the Previously Issued Junior Lien Obligations issued on or before August 25, 2016, are no longer Outstanding, the term Government Securities, as used herein, shall mean (i) direct noncallable obligations of the United States, including obligations that are unconditionally guaranteed by, the United States of America; (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the issuer adopts or approves the proceedings authorizing the issuance of refunding bonds, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent; or (iv) any additional securities and obligations hereafter authorized by the laws of the State of Texas as eligible for use to accomplish the discharge of obligations such as the Bonds. V. The term Gross Revenues shall mean all revenues, income, and receipts derived or received by the City from the operation and ownership of the System, including the interest income from the investment or deposit of money in any Fund created or confirmed by this Ordinance or maintained by the City in connection with the System, other than those amounts subject to payment to the United States of America as rebate pursuant to section 148 of the Code. 27638142.12 -22- W. The term Holder or Holders shall mean the registered owner, whose name appears in the Security Register, for any Bond. X. The term Inferior Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Net Revenues, which pledge is subordinate and inferior to the lien on and pledge of the Net Revenues that is or will be pledged to the payment of the Priority Bonds, that is included in Junior Lien Pledged Revenues, that will be pledged to the payment of the Subordinate Lien Obligations, and that is on parity with the lien on and pledge of the Net Revenues securing the payment of the then -Outstanding Inferior Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by such subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. Y. The term Interest Payment Date shall mean the date semiannual interest is payable on the Bonds, being January 15 and July 15 of each year, commencing July 15, 2017, while any of the Bonds remain Outstanding. Z. The term Junior Lien Obligations shall mean (i) the Previously Issued Junior Lien Obligations, (ii) any Additional Junior Lien Obligations, and (iii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured solely by a lien on and pledge of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations, as determined by the City Council in accordance with applicable law. AA. The term Junior Lien Pledged Revenues means (1) the Net Revenues that remain after payment of all amounts, and funding of all funds, relating to any Priority Bonds, plus (2) any additional revenues, income, receipts, or other resources, including, without limitation, any grants, donations, or income received or to be received from the United States Government, or any other public or private source, whether pursuant to an agreement or otherwise, which hereafter are pledged by the City to the payment of the Bonds, and at the City's discretion, any Additional Junior Lien Obligations, and excluding those revenues excluded from Gross Revenues. BB. The term Net Revenues shall mean all Gross Revenues less Operating Expenses. CC. The term Operating Expenses shall mean the expenses of operation and maintenance of the System, including all salaries, labor, materials, repairs, and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City, reasonably and fairly exercised by the passage of appropriate ordinances, are necessary to render adequate service, or such as might be necessary to meet some physical accident or condition which would otherwise impair any Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, Inferior Lien Obligations, or other Debt of the System. Operating Expenses shall include the purchase of water, sewer and gas services as received from other entities and the expenses related thereto, and, to the extent permitted by a 27638142.12 -23- change in law (and receipt of an opinion as to legality from a firm of nationally recognized bond counsel), Operating Expenses may include payments made on or in respect of obtaining and maintaining any Credit Facility. Operating Expenses shall never include any allowance for depreciation, property retirement, depletion, obsolescence, and other items not requiring an outlay of cash and any interest on the Bonds or any Debt. DD. The term Ordinance shall mean this Ordinance adopted by the City Council on March 28, 2017 authorizing the issuance of the Bonds. EE. The term Outstanding shall mean when used in this Ordinance with respect to all Debt means, as of the date of determination, all Debt except: (1) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations for which payment has been duly provided by the City in accordance with the provisions of Section 34 of this Ordinance; and (3) those Priority Bonds, Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations that have been mutilated, destroyed, lost, or stolen and replacement Bonds have been registered and delivered in lieu thereof as provided in Section 27 of this Ordinance. FF. The term Paying Agent/Registrar shall mean the financial institution specified in Section 3 of this Ordinance, or its herein -permitted successors and assigns. GG. The term Previously Issued Junior Lien Obligations shall mean, as of the Closing Date the Outstanding and unpaid obligations of the City that are payable solely from and equally and ratably secured by a lien on and pledge of the Junior Lien Pledged Revenues which includes a lien on and pledge of Net Revenues of the System that is junior and inferior to the lien thereon and pledge thereof securing the Priority Bonds but superior to the lien thereon and pledge thereof securing the Subordinate Lien Obligations and Inferior Lien Obligations, identified as follows: (1) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2012", dated November 15, 2012, in the original principal amount of $69,085,000; (2) "City of Corpus Christi, Texas Utility System Junior Lien Revenue and Refunding Bonds, Series 2012", dated November 15, 2012, in the original principal amount of $155,660,000; (3) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2013", dated November 1, 2013, in the original principal amount of $97,930,000; 27638142.12 -24- (4) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2015", dated July 1, 2015, in the original principal amount of $46,990,000; (5) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Improvement Bonds, Series 2015A", dated March 1, 2015, in the original principal amount of $93,600,000; (6) "City of Corpus Christi, Texas Utility System Variable Rate Junior Lien Revenue Improvement Bonds, Series 2015B", dated March 1, 2015, in the original principal amount of $49,585,000; (7) "City of Corpus Christi, Texas Utility System Variable Rate Junior Lien Revenue Improvement Bonds, Series 2015C", dated July 1, 2015, in the original principal amount of $101,385,000; (8) "City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2016", dated August 1, 2016, in the original principal amount of $80,415,000; and (9) Upon issuance, the Bonds. HH. The term Previously Issued Priority Bonds shall mean, as of the Closing Date (i) the Outstanding and unpaid obligations of the City that are payable solely from and equally and ratably secured by a prior and first lien on and pledge of the Net Revenues of the System, identified as follows: (1) "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005", dated January 1, 2005, in the original principal amount of $70,390,000; (2) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2009", dated March 1, 2009, in the original principal amount of $96,490,000; (3) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010", dated March 1, 2010, in the original principal amount of $8,000,000; (4) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Taxable Series 2010 (Direct Subsidy -Build America Bonds)", dated July 1, 2010, in the original principal amount of $60,625,000; (5) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2010A", dated July 1, 2010, in the original principal amount of $14,375,000; and 27638142.12 -25- (6) "City of Corpus Christi, Texas Utility System Revenue Improvement Bonds, Series 2012", dated April 1, 2012, in the original principal amount of $52,500,000. II. The term Priority Bonds shall mean the Previously Issued Priority Bonds and any Additional Priority Bonds hereafter issued to refund any of the foregoing if issued in a manner so as to be payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System, as determined by the City Council in accordance with any applicable law. JJ. The term Prudent Utility Practice shall mean any of the practices, methods and acts, in the exercise of reasonable judgment, in the light of the facts, including but not limited to the practices, methods and acts engaged in or approved by a significant portion of the public utility industry prior thereto, known at the time the decision was made, would have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. It is recognized that Prudent Utility Practice is not intended to be limited to the optimum practice, method or act at the exclusion of all others, but rather is a spectrum of possible practices, methods or acts which could have been expected to accomplish the desired result at the lowest reasonable cost consistent with reliability, safety and expedition. In the case of any facility included in the System which is owned in common with one or more other entities, the term "Prudent Utility Practice", as applied to such facility, shall have the meaning set forth in the agreement governing the operation of such facility. KK. The term Purchasers shall mean the initial purchaser or purchasers of the Bonds named in Section 28 of this Ordinance. LL. The term Refunding Candidates shall mean the following obligations of the City from which the Refunded Obligations are selected by an Authorized Official: (1) Federal Contract No. 6-07-01-X0675 entered into by an among the United States of America, the City and the Nueces River Authority, dated June 30, 1976, and amended on June 16, 1980, with respect to the Nueces River Reclamation Project; and (2) "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005", dated January 1, 2005, in the original principal amount of $70,390,000 and maturing on July 15 in each of the years 2018 through 2020 in the aggregate principal amount of $27,520,000. MM. The term Required Reserve Amount shall have the meaning given such term in Section 14 of this Ordinance. NN. The term Reserve Fund shall have the meaning given such term in Section 14 of this Ordinance. 00. The term Reserve Fund Deposits shall have the meaning given such term in Section 14 of this Ordinance. 27638142.12 -26- PP. The term Special Project shall mean, to the extent permitted by law, any water, sewer, wastewater reuse, or municipal drainage system property, improvement, or facility declared by the City, upon the recommendation of the City Council, not to be part of the System, for which the costs of acquisition, construction, and installation are paid from proceeds of Special Project Bonds (as hereinafter defined) being a financing transaction other than the issuance of bonds payable from ad valorem taxes, Net Revenues, or Junior Lien Pledged Revenues, and for which all maintenance and operation expenses are payable from sources other than ad valorem taxes, Net Revenues, or Junior Lien Pledged Revenues, but only to the extent that and for so long as all or any part of the revenues or proceeds of which are or will be pledged to secure the payment or repayment of such costs of acquisition, construction, and installation under such Special Project Bonds. QQ. The term Stated Maturity shall mean the annual principal payments of the Bonds payable on July 15 of each year, as set forth in Section 2 of this Ordinance. RR. The term Subordinate Lien Obligations shall mean (i) any bonds, notes, warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part from and equally and ratably secured by a lien and pledge of the Net Revenues, such pledge being subordinate and inferior to the lien on and pledge of the Net Revenues that is or will be pledged to the payment of the Priority Bonds or that is included in Junior Lien Pledged Revenues, but senior and superior to the lien thereon and pledge thereof that is or will be pledged to the payment of the Inferior Lien Obligations now Outstanding or hereafter issued by the City, and on parity with the lien on and pledge of the Net Revenues securing the payment of the then - Outstanding Subordinate Lien Obligations and (ii) obligations hereafter issued to refund any of the foregoing that are payable from and equally and ratably secured by such subordinate and inferior lien on and pledge of the Net Revenues as determined by the City Council in accordance with applicable law. SS. The term System shall mean and include, whether now existing or hereinafter added (including additions made from time to time in accordance with the provisions of the City ordinances authorizing the issuance of the Outstanding Priority Bonds), the City's existing combined waterworks system, wastewater disposal system and gas system, together with all future extensions, improvements, enlargements, and additions thereto, including, to the extent permitted by law (and to be added at the sole discretion of the City), storm sewer and drainage within the waterworks system, solid waste disposal system, additional utility (including electricity), telecommunications, technology, and any other similar enterprise services, and all replacements, additions, and improvements to any of the foregoing, within or without the City limits; provided that, notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term System shall not include any waterworks, wastewater or gas facilities which are declared by the City to be a Special Project and not a part of the System and which are hereafter acquired or constructed by the City with the proceeds from the issuance of Special Project Bonds, which are hereby defined as being special revenue obligations of the City which are not secured by or payable from all or part of the Net Revenues and/or Junior Lien Pledged Revenues, but which are secured by and payable solely from special contract revenues, or payments received from the City or any other legal entity, or any combination thereof, in connection with such facilities; and such revenues or payments shall not be considered as or 27638142.12 -27- constitute Gross Revenues of the System, unless and to the extent otherwise provided in the ordinance or ordinances authorizing the issuance of such Special Project Bonds. TT. The term System Fund shall have the meaning given such term in Section 12 of this Ordinance. SECTION 10: Pledge of Junior Lien Pledged Revenues. A. The City hereby covenants and agrees that the Junior Lien Pledged Revenues of the System are hereby irrevocably pledged to the payment and security of the Junior Lien Obligations, including the establishment and maintenance of the special funds or accounts created for the payment and security thereof, all as hereinafter provided; and it is hereby resolved that the Junior Lien Obligations, and the interest thereon, shall constitute a lien on and pledge of the Junior Lien Pledged Revenues and be valid and binding without any physical delivery thereof or further act by the City, and the lien created hereby on the Junior Lien Pledged Revenues for the payment and security of the Junior Lien Obligations, shall be, subject to the subordinate lien nature of the Junior Lien Pledged Revenues as herein described otherwise, prior in right and claim as to any other indebtedness, liability, or obligation of the City or the System. The Junior Lien Obligations are and will be secured by and payable only from the Junior Lien Pledged Revenues, and are not secured by or payable from a mortgage or deed of trust on any properties whether real, personal, or mixed, constituting the System. B. Chapter 1208, as amended, Texas Government Code, applies to the issuance of the Bonds and the pledge of Junior Lien Pledged Revenues granted by the City under subsection A of this Section, and such pledge is therefore valid, effective, and perfected. If Texas law is amended at any time while the Junior Lien Obligations are Outstanding and unpaid such that the pledge of the Junior Lien Pledged Revenues granted by the City is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, then in order to preserve to the registered owners of the Junior Lien Obligations the perfection of the security interest in this pledge, the City Council agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, as amended, Texas Business & Commerce Code and enable a filing to perfect the security interest in this pledge to occur. SECTION 11: Rates and Charges. For the benefit of the Holders of the Bonds and in addition to all provisions and covenants in the laws of the State of Texas and in this Ordinance, the City hereby expressly stipulates and agrees, while any of the Junior Lien Obligations are Outstanding, to establish and maintain rates and charges for facilities and services afforded by the System that are reasonably expected, on the basis of available information and experience and with due allowance for contingencies, to produce Gross Revenues in each Fiscal Year sufficient: A. To pay all Operating Expenses, or any expenses required by statute to be a first claim on and charge against the Gross Revenues of the System. B. To produce Net Revenues, together with any other lawfully available funds, sufficient to satisfy the rate covenant contained in the ordinances authorizing the issuance of the 27638142.12 -28- Priority Bonds and to pay the principal of and interest on the Priority Bonds and the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Priority Bonds, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a prior and first lien on an pledge of the Net Revenues of the System; C. To produce Net Revenues, together with any other lawfully available funds, equal to at least 1.15 times Average Annual Debt Service Requirements on the then -Outstanding Junior Lien Obligations and to deposit the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Junior Lien Obligations, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a lien on and pledge of the Net Revenues, including the Junior Lien Pledged Revenues, that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds but senior and superior to the lien thereon and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations; D. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the amounts that may be deposited in the special funds established for the payment of the Subordinate Lien Obligations; E. To produce Net Revenues, together with any other lawfully available funds, sufficient to pay the principal of and interest on the Inferior Lien Obligations as the same become due and payable and to deposit the amounts required to be deposited in any reserve or contingency fund or account created for the payment and security of the Inferior Lien Obligations, and any other obligations or evidences of indebtedness issued or incurred that are payable from and secured solely by a lien on and pledge of the Net Revenues that is subordinate and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds, the Junior Lien Obligations, and the Subordinate Lien Obligations; and F. To pay, together with any other lawfully available funds, any other legally incurred Debt payable from the Net Revenues of the System and/or secured by a lien on any part of the System. The determination of the amount of principal of and interest on any obligations identified in this Section for the purpose of confirming the sufficiency of System rates and charges shall be made after giving consideration as an offset to debt service the receipt or anticipated receipt of a refundable tax credit or similar payment relating to any series of obligations irrevocably designated as refundable tax credit bonds pursuant to the City ordinance authorizing their issuance or otherwise relating thereto. SECTION 12: System Fund. The City hereby covenants, agrees, and ratifies its prior covenants and agreements that the Gross Revenues of the System shall be deposited, as collected and received, into a separate Fund or account (previously created and established and to be maintained with the Depository) known as the "City of Corpus Christi, Texas Utility System Revenue Fund" (the System Fund) and that the Gross Revenues of the System shall be kept separate and apart from all other funds of the City. All Gross Revenues deposited into the 27638142.12 -29- System Fund shall be pledged and appropriated to the extent required for the following uses and in the order of priority shown: A. First: To the payment of all necessary and reasonable Operating Expenses or other expenses required by statute to be a first charge on and claim against the revenues of the System. B. Second: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Previously Issued Priority Bonds and any Additional Priority Bonds hereafter issued by the City. C. Third: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of the Previously Issued Junior Lien Obligations and any Additional Junior Lien Obligations hereafter issued by the City. D. Fourth: To the payment of the amounts required to be deposited into the special funds and accounts created and established for the payment, security and benefit of any Subordinate Lien Obligations hereafter issued by the City. E. Fifth: To the payment of the amounts that must be deposited in any special funds and accounts created and established for the payment, security, and benefit of any Inferior Lien Obligations hereafter issued by the City. Any Net Revenues remaining in the System Fund following such transfers may be used by the City for payment of other obligations of the System, and for any other lawful purpose; provided, however, that for so long as any Priority Bonds remain Outstanding, transfers made for purposes other than for payment of obligations of the System shall be made only at the end of the Fiscal Year (if such limitation is imposed, and then, only to the extent imposed in the City ordinances authorizing the issuance of the Priority Bonds). SECTION 13: Bond Fund - Excess Funds. For purposes of providing funds to pay the principal of and interest on the currently Outstanding Junior Lien Obligations as the same become due and payable, the City agrees to maintain, at the Depository, a separate and special Fund or account to be created and known as the "City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds Interest and Sinking Fund" (the Bond Fund). The City covenants that there shall be deposited by an Authorized Official into the Bond Fund prior to each principal and interest payment date from the available Net Revenues an amount equal to one hundred per cent (100%) of the amount required to fully pay the interest on and the principal of the currently Outstanding Junior Lien Obligations then falling due and payable, such deposits to pay maturing principal and accrued interest on the currently Outstanding Junior Lien Obligations to be made in substantially equal monthly installments on or before the 10th day of each month, beginning on or before the 10th day of the month next following the delivery of the Bonds to the Purchasers. As described further in Section 15 hereof, if the Junior Lien Pledged Revenues in any month are insufficient to make the required payments into the Bond Fund, then the amount of any deficiency in such payment shall be added to the amount otherwise required to be paid into the Bond Fund in the next month. 27638142.12 -30- The required monthly deposits to the Bond Fund for the payment of principal of and interest on the currently Outstanding Junior Lien Obligations shall continue to be made as hereinabove provided until such time as (i) the total amount on deposit in the Bond Fund and Reserve Fund is equal to the amount required to fully pay and discharge all Outstanding Junior Lien Obligations (principal and interest) or (ii) the Junior Lien Obligations are no longer Outstanding. Any proceeds of the Bonds, and investment income thereon, not expended for authorized purposes shall be deposited into the Bond Fund and shall be taken into consideration and reduce the amount of monthly deposits required to be deposited into the Bond Fund from the Net Revenues of the System. Any surplus proceeds from the sale of the Bonds, including investment income thereon, not expended for authorized purposes shall be deposited in the Bond Fund, and such amounts so deposited shall reduce the sums otherwise required to be deposited in such Fund from the Junior Lien Pledged Revenues. SECTION 14: Reserve Fund. To accumulate and maintain a reserve for the payment of the Bonds equal to 100% of the Average Annual Debt Service Requirements or such lesser amount as restricted by the Code (calculated by the City Council at the beginning of each Fiscal Year and as of the date of issuance of the Bonds and each series of Additional Junior Lien Obligations) for the Bonds (the Required Reserve Amount), the City hereby creates and establishes, and shall maintain at a Depository a separate and special fund known as the "Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds Reserve Fund" (the Reserve Fund). Earnings and income derived from the investment of amounts held for the credit of the Reserve Fund shall be retained in the Reserve Fund until the Reserve Fund contains the Required Reserve Amount; thereafter, such earnings and income shall be deposited to the credit of the System Fund. All funds deposited into the Reserve Fund shall be used solely for the payment of the principal of and interest on the Bonds, when and to the extent other funds available for such purposes are insufficient, and, in addition, may be used to retire the last Stated Maturity or Stated Maturities of or interest on the Bonds. The City may acquire a Credit Facility or Facilities issued by a Credit Provider in amounts equal to all or part of the Required Reserve Amount for the Bonds in lieu of depositing cash into the Reserve Fund; provided, however, that no such Credit Facility may be so substituted unless the substitution of the Credit Facility will not, in and of itself, cause any ratings then assigned to the Bonds by any nationally recognized rating agency to be lowered and the resolution authorizing the substitution of the Credit Facility for all or part of the Required Reserve Amount for the Bonds contains (i) a finding that such substitution is cost effective and (ii) a provision that the interest due on any repayment obligation of the City by reason of payments made under such Credit Facility does not exceed the highest lawful rate of interest which may be paid by the City at the time of the delivery of the Credit Facility. The City reserves the right to use Junior Lien Pledged Revenues to fund the payment of (1) periodic premiums on the Credit Facility as a part of the payment of the City's Operating Expenses, and (2) any repayment obligation incurred by the City (including interest) to the Credit Provider, the payment of which will result in the reinstatement of such Credit Facility, prior to making 27638142.12 -3 1 - payments required to be made to the Reserve Fund pursuant to the provisions of this Section to restore the balance in such fund the Required Reserve Amount for the Bonds. Until the issuance of any Additional Junior Lien Obligations (or as from time to time recalculated by the City as provided in the first paragraph of this Section), the Required Reserve Amount is $ (inclusive of the Bonds). Of this amount, $ , representing the portion of the Required Reserve Amount attributable to the Bonds, shall be deposited to the Reserve Fund at such time as may be required pursuant to the provisions of this Section from Revenues, paid from the System Fund at such level of priority as specified in Section 12, by the deposit of monthly installments, made on or before the 10th day of each month following the month in which such obligation to fund the Reserve Fund arises, of not less than 1/60th of the amount to be maintained in the Reserve Fund. As and when Additional Junior Lien Obligations are delivered or incurred, the Required Reserve Amount shall be increased, if required, to an amount calculated in the manner provided in the first paragraph of this Section. Any additional amount required to be maintained in the Reserve Fund shall be so accumulated by the deposit of all or a portion of the necessary amount from the proceeds of the issue or other lawfully available funds in the Reserve Fund immediately after the delivery of the then proposed Additional Junior Lien Obligations, or, at the option of the City, by the deposit of monthly installments, made on or before the business day before the 10th day of each month following the month of delivery of the then proposed Additional Junior Lien Obligations, of not less than 1/60th of the additional amount to be maintained in the Reserve Fund by reason of the issuance of the Additional Junior Lien Obligations then being issued (or 1/60th of the balance of the additional amount not deposited immediately in cash) (such deposits, the Required Reserve Fund Deposits), thereby ensuring the accumulation in the Reserve Fund of the appropriate Required Reserve Amount. When and for so long as the cash and investments in the Reserve Fund equal the Required Reserve Amount, no deposits need be made to the credit of the Reserve Fund; but, if and when the Reserve Fund at any time contains less than the Required Reserve Amount (other than as the result of the issuance of Additional Junior Lien Obligations as provided in the preceding paragraph), the City covenants and agrees to cure the deficiency in the Required Reserve Amount by resuming the Required Reserve Fund Deposits to the Reserve Fund from the Junior Lien Pledged Revenues in monthly deposit amounts equal to not less than 1/60th of the Required Reserve Amount covenanted by the City to be maintained in the Reserve Fund. Any such deficiency payments shall be made on or before the 10th day of each month until the Required Reserve Amount has been fully restored. The City further covenants and agrees that, subject only to the prior payments to be made to the Bond Fund, the Junior Lien Pledged Revenues shall be applied and appropriated and used to establish and maintain the Required Reserve Amount and to cure any deficiency in such amounts as required by the terms of this Ordinance, any City ordinance authorizing the issuance of the Priority Bonds, and any other ordinance pertaining to the issuance of Additional Junior Lien Obligations. During such time as the Reserve Fund contains the Required Reserve Amount, the City Council may, at its option, withdraw all surplus funds in the Reserve Fund in excess of the Required Reserve Amount. Any such withdrawn surplus shall be deposited to the Bond Fund or used by the City for any other lawful purpose; provided, however, to the extent that such excess 27638142.12 -32- amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in accordance with then -applicable State law. In the event a Credit Facility issued to satisfy all or a part of the City's obligation with respect to the Reserve Fund causes the amount then on deposit in the Reserve Fund to exceed the Required Reserve Amount for the Bonds, the City may transfer such excess amount to any fund or funds established for the payment of or security for the Bonds (including any escrow established for the final payment of any such obligations pursuant to the provisions of Chapter 1207), or be used for any lawful purposes; provided, however, to the extent that such excess amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in accordance with then -applicable State law. Notwithstanding anything to the contrary contained in this Section, the requirements set forth above to fund the Reserve Fund in the amount of the Required Reserve Amount shall be suspended for such time as the Junior Lien Pledged Revenues for each Fiscal Year are equal to at least 110% of the Average Annual Debt Service Requirements. In the event that the Junior Lien Pledged Revenues for any two consecutive Fiscal Years are less than 110% (unless such percentage is below 100% in any Fiscal Year, in which case the hereinafter—specified requirements will commence after such Fiscal Year) of the Average Annual Debt Service Requirements, the City will be required to commence making the deposits to the Reserve Fund, as provided above, and to continue making such deposits until the earlier of (i) such time as the Reserve Fund contains the Required Reserve Amount or (ii) the Junior Lien Pledged Revenues for a Fiscal Year have been equal to not less than 110% of the Average Annual Debt Service Requirements. SECTION 15: Deficiencies - Excess Junior Lien Pledged Revenues. A. If on any occasion there shall not be sufficient Junior Lien Pledged Revenues to make the required deposits into the Bond Fund, then such deficiency shall be cured as soon as possible from the next available unallocated Junior Lien Pledged Revenues, or from any other sources available for such purpose, and such payments shall be in addition to the amounts required to be paid into these Funds or accounts during such month or months. B. Subject to making the required deposits to the Bond Fund when and as required by any ordinance or resolution authorizing the issuance of the currently Outstanding Priority Bonds, the Junior Lien Obligations, the Subordinate Lien Obligations and the Inferior Lien Obligations, the excess Net Revenues of the System may be used by the City for any lawful purpose (as further provided in Section 12 hereof). SECTION 16: Payment of Bonds. While any of the Bonds are Outstanding, an Authorized Official shall cause to be transferred to the Paying Agent/Registrar therefor, from funds on deposit in the Bond Fund, amounts sufficient to fully pay and discharge promptly each installment of interest on and principal of the Bonds as such installment accrues or matures; such transfer of funds must be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date a debt service payment is due on the Bonds. 27638142.12 -33- SECTION 17: Investments. Funds held in any Fund or account created, established, or maintained pursuant to this Ordinance shall, at the option of the City, be placed in time deposits, certificates of deposit, guaranteed investment contracts or similar contractual agreements as permitted by the provisions of the Public Funds Investment Act, as amended, Chapter 2256, Texas Government Code, or any other law, and secured (to the extent not insured by the Federal Deposit Insurance Corporation) by obligations of the type hereinafter described, including investments held in book -entry form, in securities including, but not limited to, direct obligations of the United States of America, obligations guaranteed or insured by the United States of America, which, in the opinion of the Attorney General of the United States, are backed by its full faith and credit or represent its general obligations, or invested in indirect obligations of the United States of America, including, but not limited to, evidences of indebtedness issued, insured, or guaranteed by such governmental agencies as the Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, Federal Home Loan Banks, Government National Mortgage Association, Farmers Home Administration, Federal Home Loan Mortgage Association, or Federal Housing Association; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from any Fund or account will be available at the proper time or times. Such investments (except State and Local Government Series investments held in book entry form, which shall at all times be valued at cost) shall be valued in terms of current market value within 45 days of the close of each Fiscal Year. All interest and income derived from deposits and investments in the Bond Fund immediately shall be credited to, and any losses debited to, the Bond Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Bonds. SECTION 18: Covenants. It is the intention of the City Council and accordingly hereby recognized and stipulated that the provisions, agreements, and covenants contained herein bearing upon the management and operations of the System, and the administering and application of Gross Revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements, and covenants contained in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding, and to the extent of any irreconcilable conflict between the provisions contained herein and in the City ordinances authorizing the issuance of the Priority Bonds now or hereafter Outstanding, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance, especially the priority of rights and benefits conferred thereby to the holders of the Priority Bonds now or hereafter Outstanding; provided, however, that the provisions of this Ordinance concerning the issuance of Additional Priority Bonds shall control. It is expressly recognized that prior to the issuance of any Additional Junior Lien Obligations, Subordinate Lien Obligations, or Inferior Lien Obligations, that the City must comply with each of the conditions precedent contained in this Ordinance and the City ordinances authorizing the issuance of the then -Outstanding Priority Bonds, as appropriate. A. Performance. It will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance, and each ordinance authorizing the issuance of Junior Lien Obligations; it will promptly pay or cause to be paid the principal amount of and interest on all Debt, on the dates and in the places and manner prescribed in such ordinances and such Debt; and it will, at the time and in the manner prescribed, deposit or cause to be deposited the amounts required to be deposited into the System Fund and the Funds herein created; and any registered owner of any Debt may require the City, 27638142.12 -34- its officials and employees to carry out, respect or enforce the covenants and obligations of this Ordinance, or any ordinance authorizing the issuance of Debt, by all legal and equitable means, including specifically, but without limitation, the use and filing of mandamus proceedings, in any court of competent jurisdiction, against the City, its officials and employees. B. City's Legal Authority. It is a duly created and existing home rule city of the State of Texas, and is duly authorized under the laws of the State of Texas to issue the Bonds; that all action on its part for the issuance of the Bonds has been duly and effectively taken, and that the Bonds in the hands of the owners thereof are and will be valid and enforceable special obligations of the City in accordance with their terms. C. Acquisition and Construction; Operation and Maintenance. (1) It shall use its best efforts in accordance with Prudent Utility Practice to acquire and construct, or cause to be acquired and constructed, any Capital Additions or Capital Improvements, in accordance with the plans and specifications therefor, as modified from time to time, with due diligence and in a sound and economical manner; and (2) it shall at all times use its best efforts to operate or cause to be operated the System properly and in an efficient manner, consistent with Prudent Utility Practice, and shall use its best efforts to maintain, preserve, reconstruct and keep the same or cause the same to be so maintained, preserved, reconstructed and kept, with the appurtenances and every part and parcel thereof, in good repair, working order and condition, and shall from time to time make, or use its best efforts to cause to be made, all necessary and proper repairs, replacement and renewals so that at all times the operation of the System may be properly and advantageously conducted. D. Title. It has or will obtain lawful title, whether such title is in fee or lesser interest, to the lands, buildings, structures and facilities constituting the System, that it warrants that it will defend the title to all the aforesaid lands, buildings, structures and facilities, and every part thereof, for the benefit of the owners of the Junior Lien Obligations, against the claims and demands of all persons whomsoever, that it is lawfully qualified to pledge the Junior Lien Pledged Revenues to the payment of the Junior Lien Obligations in the manner prescribed herein, and has lawfully exercised such rights. E. Liens. It will from time to time and before the same become delinquent pay and discharge all taxes, assessments and governmental charges, if any, which shall be lawfully imposed upon it, or the System; it will pay all lawful claims for rents, royalties, labor, materials and supplies which if unpaid might by law become a lien or charge thereon, the lien of which would be prior to or interfere with the liens hereof, so that the priority of the liens granted hereunder shall be fully preserved in the manner provided herein, and it will not create or suffer to be created any mechanic's, laborer's, materialman's or other lien or charge which might or could be prior to the liens hereof, or do or suffer any matter or thing whereby the liens hereof might or could be impaired; provided however, that no such tax, assessment or charge, and that no such claims which might be used as the basis of a mechanic's, laborer's, materialman's or other lien or charge, shall be required to be paid so long as the validity of the same shall be contested in good faith by the City. F. No Free Service. No free service or service otherwise than in accordance with the established rate schedule shall be furnished, directly or indirectly, by the System to any person, 27638142.12 -35- firm, corporation or other entity, other than the City. No part of the salary of any official or employee of the City or his replacement shall be paid from Junior Lien Pledged Revenues unless and only to the extent the duties and performances of such official or employee or his replacement appertain directly to the System. To the extent the City receives the services of the System, such services shall be accounted for according to the established rate schedule. G. Further Encumbrance. It will not additionally encumber the Net Revenues of the System in any manner, except as permitted in the City ordinances authorizing the Previously Issued Priority Bonds and in this Ordinance (which provisions are also included in other City ordinances authorizing other series of Junior Lien Obligations). H. Sale, Lease or Disposal of Property. No part of the System shall be sold, leased, mortgaged, demolished, removed or otherwise disposed of, except as follows: (1) To the extent permitted by law, the City may sell or exchange at any time and from time to time any property or facilities constituting part of the System only if (A) it shall determine such property or facilities are not useful in the operation of the System, or (B) the proceeds of such sale are $250,000 or less, or it shall have received a certificate executed by an Engineer and the City Manager stating, in their opinion, that the fair market value of the property or facilities exchanged is $250,000 or less, or (C) if such proceeds or fair market value exceeds $250,000 it shall have received a certificate executed by an Engineer and the City Manager stating (i) that system within the System of which the property or facilities comprises a part thereof and (ii) in their opinion, that the sale or exchange of such property or facilities will not impair the ability of the City to comply during the current or any future Fiscal Year with the provisions of Subsection K of this Section. The proceeds of any such sale or exchange not used to acquire other property necessary or desirable for the safe or efficient operation of the System shall forthwith, at the option of the City (i) be used to redeem or purchase Debt, or (ii) otherwise be used to provide for the payment of Debt. The foregoing notwithstanding, if such property or facilities sold or exchanged constituted property or facilities comprising all or a part of a system within the System, the acquisition, improvement or extension of such system having not been financed by the City in any manner with the proceeds of Debt, or with the proceeds of obligations which were refunded in whole or in part with the proceeds of Debt, then the City may utilize the proceeds of such sale or exchange for any lawful purpose; and (2) To the extent permitted by law, the City may lease or make contracts or grant licenses for the operation of, or make arrangements for the use of, or grant easements or other rights with respect to, any part of the System, provided that any such lease, contract, license, arrangement, easement or right (A) does not impede the operation by the City of the System and (B) does not in any manner impair or adversely affect the rights or security of the owners of the Debt under this Ordinance; and provided, further, that if the depreciated cost of the property to be covered by any such lease, contract, license, arrangement, easement or other right is in excess of $500,000, the City shall have received a certificate executed by an Engineer and the City Manager that the action of the City with respect thereto does not result in a breach of the conditions under this clause (2). Any payments received by the City under or in connection with any such lease, 27638142.12 -36- contract, license, arrangement, easement or right in respect of the System or any part thereof shall constitute Gross Revenues. I. Books, Records and Accounts. It shall keep proper books, records and accounts separate and apart from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the System and the City shall cause said books and accounts to be audited annually as of the close of each Fiscal Year by the Accountant. J. Insurance. (1) Except as otherwise permitted in clause (2) below, it shall cause to be insured such parts of the System as would usually be insured by corporations operating like properties, with a responsible insurance company or companies, against risks, accidents or casualties against which and to the extent insurance is usually carried by corporations operating like properties, including, to the extent reasonably obtainable, fire and extended coverage insurance, insurance against damage by floods, and use and occupancy insurance. Public liability and property damage insurance shall also be carried unless the City Attorney gives a written opinion to the effect that the City is not liable for claims which would be protected by such insurance. At any time while any contractor engaged in construction work shall be fully responsible therefor, the City shall not be required to carry insurance on the work being constructed if the contractor is required to carry appropriate insurance. All such policies shall be open to the inspection of the bondholders and their representatives at all reasonable times. (2) In lieu of obtaining policies for insurance as provided above, the City may self -insure against risks, accidents, claims or casualties described in clause (1) above. (3) The annual audit hereinafter required shall contain a section commenting on whether or not the City has complied with the requirements of this Section with respect to the maintenance of insurance, and listing the areas of insurance for which the City is self-insuring, all policies carried, and whether or not all insurance premiums upon the insurance policies to which reference is hereinbefore made have been paid. K. Audits. After the close of each Fiscal Year while any Debt is Outstanding, an audit will be made of the books and accounts relating to the System and the Net Revenues by the Accountant. Such annual audit reports shall be open to the inspection of the registered owners of Debt and their agents and representatives at all reasonable times. L. Governmental Agencies. It will comply with all of the terms and conditions of any and all franchises, permits and authorizations applicable to or necessary with respect to the System, and which have been obtained from any governmental agency; and the City has or will obtain and keep in full force and effect all franchises, permits, authorization and other requirements applicable to or necessary with respect to the acquisition, construction, equipment, operation and maintenance of the System. M. No Competition. To the extent it legally may, it will not grant any franchise or permit for the acquisition, construction or operation of any competing facilities which might be 27638142.12 -37- used as a substitute for the System's facilities, and, to the extent that it legally may, the City will prohibit any such competing facilities. N. Rights of Inspection. The Engineer or any registered owner of $100,000 in aggregate principal amount of the Debt then Outstanding shall have the right at all reasonable times to inspect the System and all records, accounts and data of the City relating thereto, and upon request the City shall furnish to an Engineer or such registered owner, as the case may be, such financial statements, reports and other information relating to the City and the System as an Engineer or such registered owner may from time to time reasonably request. SECTION 19: Issuance of Additional Priority Bonds, Additional Junior Lien Obligations, Subordinate Lien Obligations, and Inferior Lien Obligations. The City hereby expressly reserves the right to hereafter issue bonds, notes, warrants, certificates of obligation, or similar obligations, payable, wholly or in part, as appropriate, from and secured by a pledge of and lien on the Net Revenues of the System with the following priorities, without limitation as to principal amount, but subject to any terms, conditions, or restrictions applicable thereto under existing ordinances, laws, or otherwise: A. Additional Priority Bonds payable from and equally and ratably secured by a first and prior lien on and pledge of the Net Revenues of the System upon satisfying each of the conditions precedent contained in the City ordinances authorizing the Previously Issued Priority Bonds concerning the issuance of Additional Priority Bonds to realize debt service savings by refunding any Priority Bonds at such time outstanding. For the avoidance of doubt, the City hereby covenants to no longer issue Priority Bonds for "new money" purposes. B. Additional Junior Lien Obligations, secured by and payable from the Junior Lien Pledged Revenues, which includes (primarily) a lien on and pledge of Net Revenues that is junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority Bonds but senior and superior to the lien there on and pledge thereof securing the repayment of the Subordinate Lien Obligations and the Inferior Lien Obligations, upon satisfying each of the following conditions precedent: (1) The City Manager (or other officer of the City then having the responsibility for the financial affairs of the City) shall have executed a certificate stating (i) that the City is not then in default as to any covenant, obligation or agreement contained in any ordinance or other proceeding relating to any obligations of the City payable from and secured by a lien on and pledge of the Net Revenues and (ii) that the amounts on deposit in all Funds or Accounts created and established for the payment and security of all Outstanding obligations payable from and secured by a lien on and pledge of the Net Revenues are the amounts then required to be deposited therein. Such certificate shall be dated on or before the date of delivery of such Additional Junior Lien Obligations, but such certificate shall not be dated prior to the date an ordinance is passed authorizing the issuance of such Additional Junior Lien Obligations. (2) Conditions Precedent for Issuance of Additional Junior Lien Obligations - Capital Improvements and for any other Lawful Purpose except for Capital Additions or for Refunding. The City covenants and agrees that Additional Junior Lien Obligations 27638142.12 -38- will not be issued for the purpose of financing Capital Improvements, or for any other lawful purpose (except for Capital Additions or for refunding, which are to be issued in accordance with the provisions of Subsection (3) of this Section and Section 21 hereof, respectively) unless and until the conditions precedent in Subsection (1) above have been satisfied and, in addition thereto, the City has secured a certification of the City Manager to the effect that, according to the books and records of the City, the Net Earnings (as hereinafter defined) for the preceding Fiscal Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Junior Lien Obligations is adopted are at least equal to 1.15 times the Average Annual Debt Service Requirements for all then -Outstanding Priority Bonds and Junior Lien Obligations after giving effect to the Additional Junior Lien Obligations then proposed. The foregoing notwithstanding, the City covenants and agrees that Additional Junior Lien Obligations may not be issued for the purpose of financing Capital Improvements when other Outstanding Junior Lien Obligations which have been issued for the purpose of financing Capital Additions and for which capitalized interest for such other Junior Lien Obligations has been provided for at least the twelve months subsequent to the date of issuance of the Additional Junior Lien Obligations then proposed to be issued, unless the conditions precedent in Subsection (1) above have been satisfied and, in addition thereto, the City has either (1) complied with the relevant conditions in this Subsection as set forth above, or (2) if the relevant conditions of this Subsection (2) as set forth above cannot be satisfied, the City has satisfied the conditions precedent in Subsection (3)(i) and (ii) of this Section (but, for purposes of such clauses, the term Capital Improvements shall be substituted for the term Capital Additions where the term Capital Additions appears therein to the extent necessary to give recognition to the fact that Capital Improvements, rather than Capital Additions, are then to be financed) and has secured a certification of the City Manager to the effect that, according to the books and records of the City, the Net Earnings for the preceding Fiscal Year or for 12 consecutive months out of the 15 months immediately preceding the month the ordinance authorizing the Additional Junior Lien Obligations is adopted are at least equal to 1.15 times the Average Annual Debt Service Requirements for all then -Outstanding Priority Bonds and Junior Lien Obligations (other than Junior Lien Obligations issued for Capital Additions for which capitalized interest has been provided for at least the twelve months subsequent to the date of issuance of the Additional Junior Lien Obligations proposed to be issued) after giving effect to the Additional Junior Lien Obligations then proposed to be issued. (3) Conditions Precedent for Issuance of Additional Junior Lien Obligations - Capital Additions: Initial Issue. The City covenants and agrees that Additional Junior Lien Obligations will not be issued for the purpose of financing Capital Additions, unless the same conditions precedent specified in Subsection (1) above have been satisfied and, in addition thereto, either the relevant conditions precedent specified in Subsection (1) above are satisfied or, in the alternative, the City shall have obtained: (i) from an Engineer a comprehensive engineering report for each Capital Addition to be financed, which report shall (A) contain (1) detailed estimates of the cost of acquiring and constructing the Capital Addition, (2) the estimated date the acquisition and construction of the Capital Addition will be completed and commercially operative, and (3) a detailed analysis of the impact of the Capital Addition on the financial operations of the system for which the Capital Addition is to be integrated and to the System as a whole during the 27638142.12 -39- construction thereof and for at least five Fiscal Years after the date the Capital Addition becomes commercially operative, and (B) conclude that (1) the Capital Addition is necessary and will substantially increase the capacity, or is needed to replace existing facilities, to meet current and projected demands for the service or product to be provided thereby, and (2) the estimated cost of providing the service or product from the Capital Addition will be reasonable in comparison with projected costs for furnishing such service or product from other reasonably available sources; and (ii) a certificate of an Engineer to the effect that, based on an engineering report prepared thereby for each Capital Addition, the projected Net Earnings for each of the five Fiscal Years subsequent to the date the Capital Addition becomes commercially operative (as estimated in the engineering report) will be equal to at least 1.15 times the Average Annual Debt Service Requirements for the currently Outstanding Junior Lien Obligations or incurred and all Additional Junior Lien Obligations estimated to be issued, if any, for all Capital Improvements and for all Capital Additions then in progress or then being initiated, during the period from the date the first series of obligations for the Capital Additions is to be delivered through the fifth Fiscal Year subsequent to the date the Capital Addition is estimated to become commercially operative. (4) Completion Issues. Once a Capital Addition has been initiated by meeting the conditions precedent specified in Subsection (3)(i) and (ii) above and the initial Junior Lien Obligations issued therefor are delivered, the City reserves the right to issue Additional Junior Lien Obligations to finance the remaining costs of such Capital Addition in such amounts as may be necessary to complete the acquisition and construction thereof and make the same commercially operative without satisfaction of any condition precedent under Subsection (3)(i) and (ii) or Subsection (1) of this Section but subject to satisfaction of the following conditions precedent: (i) the City makes a forecast (the Forecast) of the operations of the System demonstrating the System's ability to pay all obligations, payable from the Net Revenues of the System to be Outstanding after the issuance of the Additional Junior Lien Obligations then being issued for the period (the Forecast Period) of each ensuing Fiscal Year through the fifth Fiscal Year subsequent to the latest estimated date such Capital Addition is expected to be commercially operative; and (ii) an Engineer reviews such Forecast and executes a certificate to the effect that (A) such Forecast is reasonable, and based thereon (and such other factors deemed to be relevant), the Net Revenues of the System will be adequate to pay all the obligations, payable from the Junior Lien Pledged Revenues of the System to be Outstanding after the issuance of the Additional Junior Lien Obligations then being issued for the Forecast Period and (B) the proceeds from the sale of such Additional Junior Lien Obligations are estimated to be sufficient to complete such acquisition and construction. (5) Computations; Reports. With reference to Junior Lien Obligations anticipated and estimated to be issued or incurred, the Average Annual Debt Service Requirements therefor shall be those reasonably estimated and computed by the City's Director of Financial Services (or other officer of the City then having the primary responsibility for the financial affairs of the City) after giving effect to the receipt or anticipated receipt of a refundable tax credit or similar payment relating to any series of Junior Lien Obligations irrevocably designated as refundable tax credit bonds, which 27638142.12 -40- payment shall be treated as an offset to regularly scheduled debt service of the series of Junior Lien Obligations to which it relates. In the preparation of the engineering report required in Subsection (3)(i) above, an Engineer may rely on other experts or professionals, including those in the employment of the City, provided such engineering report discloses the extent of such reliance and concludes it is reasonable so to rely. In connection with the issuance of Junior Lien Obligations for Capital Additions, the certification of the City Manager and an Engineer, together with the engineering report for the initial issue and the Forecast for a subsequent issue, shall be conclusive evidence and the only evidence required to show compliance with the provisions and requirements and this clause of this Section. (6) Combination Issues. Junior Lien Obligations for Capital Additions may be combined in a single issue with Junior Lien Obligations for Capital Improvements or for any lawful purpose provided the conditions precedent set forth in Subsection (2) through (4) are complied with as the same relate to the appropriate purpose. (7) Definition of Net Earnings. As used in this Section, the term Net Earnings shall mean the Gross Revenues of the System after deducting the Operating Expenses of the System and those items identified in the SECOND level of priority in Section 12 hereof, but not expenditures which, under standard accounting practice, should be charged to capital expenditures. (8) Determination of Net Earnings. In making a determination of Net Earnings for any of the purposes described in this Section, the City Manager may take into consideration a change in the rates and charges for services and facilities afforded by the System that became effective at least 60 days prior to the last day of the period for which Net Earnings are determined and, for purposes of satisfying any of the Net Earnings test described above, make a pro forma determination of the Net Earnings of the System for the period of time covered by the City Manager's certification or opinion based on such change in rates and charges being in effect for the entire period covered by the City Manager's certificate or opinion. C. The City may issue Subordinate Lien Obligations secured by a lien on and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged Revenues, respectively, but senior and superior to the lien there on and pledge thereof securing the repayment of the Inferior Lien Obligations, on the terms and conditions desired by the City, subject only to the limitations imposed by applicable law and upon satisfying each of the conditions precedent contained in the ordinances authorizing the issuance of the currently - Outstanding Priority Bonds, and this Ordinance. D. The City may issue Inferior Lien Obligations secured by a lien on and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged Revenues, respectively, on the terms and conditions desired by the City, subject only to the limitations imposed by applicable law and upon satisfying each of the conditions precedent contained in the 27638142.12 -41- ordinances authorizing the issuance of the currently -Outstanding Priority Bonds and this Ordinance. SECTION 20: Refunding Bonds. The City reserves the right to issue refunding bonds to refund all or any part of the currently Outstanding Debt, pursuant to any applicable law then available, upon such terms and conditions as the City Council may deem to be in the best interest of the City, and if less than all such currently Outstanding Debt are refunded, the conditions precedent prescribed for the issuance of Additional Junior Lien Obligations set forth in Section 19 of this Ordinance shall be satisfied and the City Managers' certification required in Section 19 shall give effect to the Debt Service Requirements of the proposed refunding bonds (but shall not give effect to the Debt Service Requirements of the obligations being refunded following their cancellation or provision being made for their payment). SECTION 21: Issuance of Special Project Bonds. Nothing in this Ordinance shall be construed to deny the City the right and it shall retain the right to issue Special Project Bonds, provided, however, the City will not issue Special Project Bonds unless the City concludes, upon recommendation of the City Council, that (i) the plan for developing the Special Project is consistent with sound planning, (ii) the Special Project would not materially and adversely interfere with the operation of the System, (iii) the Special Project can be economically and efficiently operated and maintained, and (iv) the Special Project can be economically and efficiently utilized by the City to meet combined utility system requirements and the cost of such will be reasonable. SECTION 22: Security of Funds. All money on deposit in the funds or accounts for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested as provided herein) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and money on deposit in such Funds or accounts shall be used only for the purposes permitted by this Ordinance SECTION 23: Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Bond Fund, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, the Holders of any of the Bonds shall be entitled to seek a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedy herein provided shall be cumulative of all other existing remedies and the specification of such remedy shall not be deemed to be exclusive. For the avoidance of doubt, no default with respect to any obligation that is secured by and payable from a lien on and pledge of Net Revenues that is junior and subordinate to the lien 27638142.12 -42- thereon and pledge thereof securing the Priority Bonds shall ever be deemed to be a default with respect to the Priority Bonds. SECTION 24: Notices to Holders Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first-class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Holders. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 25: Bonds Are Negotiable Instruments. Each of the Bonds authorized herein shall be deemed and construed to be a "security" and as such a negotiable instrument with the meaning of the Chapter 8 of the Texas Uniform Commercial Code. SECTION 26: Cancellation. All Bonds surrendered for payment, transfer, redemption, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the City. SECTION 27: Mutilated, Destroyed, Lost, and Stolen Bonds. If (1) any mutilated Bond is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Bond, and (2) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Bond has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated Maturity and interest rate and of like tenor and principal amount, bearing a number not contemporaneously Outstanding. In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Bond, pay such Bond. Upon the issuance of any new Bond or payment in lieu thereof, under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other 27638142.12 -43- governmental charge imposed in relation thereto and any other expenses (including attorney's fees and the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Bonds. SECTION 28: Sale of Bonds- Official Statement Approval — Approval of Purchase Contract. The Bonds authorized by this Ordinance are hereby sold by the City to , [as the authorized representative of a group of underwriters (the Purchasers, and having all the rights, benefits, and obligations of a Holder)] in accordance with the provisions of a Purchase Contract dated , 2017 (the Purchase Contract) attached hereto as Exhibit B and incorporated herein by reference as a part of this Ordinance for all purposes. The pricing terms of the sale of the Bonds are hereby found and determined to be the most advantageous reasonably obtainable by the City. The Initial Bond shall be registered in the name of . Any Authorized Official is hereby authorized and directed to execute the Purchase Contract for and on behalf of the City and as the act and deed of the City Council, and in regard to the approval and execution of the Purchase Contract, the City Council hereby finds, determines and declares that the representations, warranties, and agreements of the City contained in the Purchase Contract are true and correct in all material respects and shall be honored by the City. Delivery of the Bonds to the Purchasers shall occur as soon as practicable after the adoption of this Ordinance, upon payment therefor in accordance with the terms of the Purchase Contract. Furthermore, the City hereby ratifies, confirms, and approves in all respects (i) the City's prior determination that the Preliminary Official Statement was, as of its date, "deemed final" in accordance with the Rule (hereinafter defined) and (ii) the use and distribution of the Preliminary Official Statement by the Purchasers in connection with the public offering and sale of the Bonds. The final Official Statement, being a modification and amendment of the Preliminary Official Statement to reflect the terms of sale (together with such changes approved by an Authorized Official), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute the final Official Statement, dated 2017, in the reoffering, sale and delivery of the Bonds to the public. The Mayor and/or City Secretary are further authorized and directed to manually execute and deliver for and on behalf of the City copies of the Official Statement in final form as may be required by the Purchasers, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the City Council and constitute the Official Statement authorized for distribution and use by the Purchasers. SECTION 29: Escrow Deposit Letter - Approval and Execution. The Escrow Deposit Letter dated as of February 21, 2017 (the Agreement) by and between the City and 27638142.12 -44- , Texas (the Escrow Agent), attached hereto as Exhibit C and incorporated herein by reference as a part of this Order for all purposes, is hereby approved as to form and content, and such Agreement in substantially the form and substance attached hereto, together with such changes or revisions as may be necessary to accomplish the refunding or benefit the City, is hereby authorized to be executed by an Authorized Official for and on behalf of the City and as the act and deed of this City Council; and such Agreement as executed by said officials shall be deemed approved by the City Council and constitute the Agreement herein approved. Furthermore, any Authorized Official and Bond Counsel, in cooperation with the Escrow Agent, are hereby authorized and directed to make the necessary arrangements for the purchase of the Escrowed Securities, if any, referenced in the Agreement and the delivery thereof to the Escrow Agent on the day of delivery of the Bonds to the Purchasers for deposit to the credit of the "CITY OF CORPUS CHRISTI, TEXAS JUNIOR LIEN REVENUE REFUNDING BONDS, SERIES 2017A ESCROW FUND" (the Escrow Fund), including the execution of the subscription forms, if any, for the purchase and issuance of the "United States Treasury Securities - State and Local Government Series" for deposit to the Escrow Fund; all as contemplated and provided by the provisions of the Act, this Ordinance, and the Agreement. SECTION 30: Proceeds of Sale; Contribution from the City Immediately following the delivery of the Bonds, certain proceeds of sale along with a cash contribution, if any, from the City (less certain costs of issuance and accrued interest, if any, received from the Purchasers of the Bonds) shall be deposited with the Escrow Agent for application and disbursement in accordance with the provisions of the Escrow Agreement. The proceeds of sale of the Bonds not so deposited with the Escrow Agent for the refunding of the Refunded Obligations shall be disbursed for payment of costs of issuance or deposited in the Bond Fund for the Bonds, all in accordance with written instructions from an Authorized Official. Amounts held in the interest and sinking fund for the Refunded Obligations and not used as part of the City's contribution to the Escrow Fund, if any, shall be deposited into the Bond Fund and used to pay principal on the Bonds. SECTION 31: Redemption of Refunded Obligations. The Refunded Obligations referenced in the preamble hereof become subject to redemption prior to their stated maturities at the price of par and accrued interest to their respective date of redemption. The City shall give written notice to the paying agent/registrar for the Refunded Obligations that the Refunded Obligations have been called for redemption, and the City Council orders that such obligations are called for redemption on the redemption dates set forth on Schedule I attached hereto, and such order to redeem the Refunded Obligations on such date shall be irrevocable upon the delivery of the Bonds. A copy of the notice of redemption pertaining to each series of Refunded Obligations is attached to this Ordinance as Exhibit D and is incorporated herein by reference for all purposes. The paying agent/registrar for the Refunded Obligations is authorized and instructed to provide notice of these redemptions to the holders of the Refunded Obligations in the form and manner described in the respective City ordinances authorizing each issuance of Refunded Obligations. 27638142.12 -45- SECTION 32: Covenants to Maintain Tax -Exempt Status. A. Definitions. When used in this Section, the following terms have the following meanings: Code means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. Computation Date has the meaning set forth in Section 1.148-1(b) of the Regulations. Gross Proceeds means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds. Investment has the meaning set forth in Section 1.148-1(b) of the Regulations. Nonpurpose Investment means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. Rebate Amount has the meaning set forth in Section 1.148-1(b) of the Regulations. Regulations means any proposed, temporary, or final Income Tax Regulations issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. Yield of (a) any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and (b) the Bonds means the yield on the Bonds, calculated in the manner set forth in Section 1.148-4 of the Regulations. B. Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. 27638142.12 -46- C. No Private Use or Private Payments. Except as would not cause the Bonds to become "private activity bonds" within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. D. No Private Loan. Except as would not cause the Bonds to become "private activity bonds" within the meaning of section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take -or -pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. E. Not to Invest at Higher Yield. Except as would not cause the Bonds to become "arbitrage bonds" within the meaning of section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed of, materially exceeds the Yield of the Bonds. F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. 27638142.12 -47- G. Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. H. Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Bond Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148- 3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the 27638142.12 -48- earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. J. Bonds Not Hedge Bonds. (1) At the time the original bonds refunded by the Bonds were issued, the City reasonably expected to spend at least 85% of the spendable proceeds of such bonds within three years after such bonds were issued. (2) Not more than 50% of the proceeds of the original bonds refunded by the Bonds were invested in Nonpurpose Investments having a substantially guaranteed Yield for a period of four (4) years or more. (3) The District reasonably expects to spend 85% of the spendable years after the date of issuance thereof. K. Current Refunding of the Refunded Obligations. The Bonds are issued to refund the Refunded Obligations set forth on Schedule I hereto and the Bonds will be issued, and the proceeds thereof used, within 90 days after the Closing Date for the payment of the Refunded Obligations at their date of prior redemption. In the issuance of the Bonds, the City has employed no "device" to obtain a material financial advantage (based on arbitrage), within the meaning of section 149(d)(4) of the Code, apart from savings attributable to lower interest rates. The City has complied with the covenants, representations, and warranties contained in the documents executed in connection with the issuance of the Refunded Obligations L. Elections. The City hereby directs and authorizes each Authorized Official, or any combination of them, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Such elections shall be deemed to be made on the Closing Date. SECTION 33: Control and Custody of Bonds. The Mayor shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas and shall take and have charge and control of the Bonds pending their approval by the Attorney General of the State of Texas, the registration thereof by the Comptroller of Public Accounts of the State of Texas and the delivery of the Bonds to the Purchasers. Furthermore, any Authorized Official or any combination of them are hereby authorized and directed to furnish and execute such documents relating to the City and its financial affairs as may be necessary for the issuance of the Bonds, the approval of the Attorney General and their registration by the Comptroller of Public Accounts and, together with the City's Bond Counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond to the Purchasers. 27638142.12 -49- SECTION 34: Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the lien on and pledge of Junior Lien Pledged Revenues made under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. The Bonds, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at Stated Maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have, in the case of a net defeasance, been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any money deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof for the Bonds. In the event of a gross defeasance of the Bonds, the City shall deliver a certificate from its financial advisor, the Paying Agent/Registrar, or another qualified third party concerning the deposit of cash and/or Government Securities to pay, when due, the principal of, redemption premium (if any), and interest due on any defeased Bonds. The City covenants that no deposit of money or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as arbitrage bonds within the meaning of section 148 of the Code (as defined in Section 32 hereof). Any money so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such money has been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such money was deposited and is held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor, subject to the unclaimed property laws of the State of Texas. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem defeased Bonds that is made in conjunction with the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable, provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of that right to the owners of the defeased Bonds immediately following the defeasance; (3) directs that notice of the reservation be included in any redemption notices that it authorizes; and (4) at the time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased 27638142.12 -50- debt as though it was being defeased at the time of the exercise of the option to redeem the defeased Bonds, after taking the redemption into account in determining the sufficiency of the provisions made for the payment of the defeased Bonds. SECTION 35: Ordinance a Contract; Amendments - Outstanding Bonds. The City acknowledges that the covenants and obligations of the City herein contained are a material inducement to the purchase of the Bonds. This Ordinance shall constitute a contract with the Holders from time to time, binding on the City and its successors and assigns, and it shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the written consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required for consent to any such amendment, addition, or rescission. SECTION 36: Printed Opinion. The Purchasers' obligation to accept delivery of the Bonds is subject to their being furnished a final opinion of Norton Rose Fulbright US LLP, as Bond Counsel, approving certain legal matters as to the Bonds, said opinion to be dated and delivered as of the date of initial delivery and payment for such Bonds. Printing of a true and correct copy of said opinion on the reverse side of each of said Bonds, with appropriate certificate pertaining thereto executed by facsimile signature of the City's Secretary is hereby approved and authorized. SECTION 37: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof, and neither the City nor attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 38: Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. SECTION 39: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, Bond Counsel, Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, Bond Counsel, Financial Advisors, the Paying Agent/Registrar, and the Holders. 27638142.12 -51- SECTION 40: Inconsistent Provisions. All resolutions and ordinances, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. SECTION 41: Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 42: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 43: Incorporation of Preamble Recitals. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a part of the judgment and findings of the City Council. SECTION 44: Authorization of Paying Agent/Registrar Agreement. The City Council hereby finds and determines that it is in the best interest of the City to authorize the execution of a Paying Agent/Registrar Agreement concerning the payment, exchange, and transferability of the Bonds. A copy of the Paying Agent/Registrar Agreement is attached hereto, in substantially final form, as Exhibit A and is incorporated by reference to the provisions of this Ordinance. SECTION 45: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. SECTION 46: Continuing Disclosure of Information. A. Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: EMMA means the MSRB's Electronic Municipal Market Access system, accessible by the general public, without charge, on the internet through the uniform resource locator (URL) http://www.emma.msrb.org. MSRB means the Municipal Securities Rulemaking Board. Rule means SEC Rule 15c2-12, as amended from time to time. SEC means the United States Securities and Exchange Commission. B. Annual Reports. The City shall file annually with the MSRB, (1) within six months after the end of each Fiscal Year of the City ending in or after 2017, financial information and operating data with respect to the System of the general type included in the 27638142.12 -52- final Official Statement authorized by Section 28 of this Ordinance, being the information described in Exhibit E hereto, and (2) if not provided as part such financial information and operating data, audited financial statements of the City, when and if available. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit E hereto, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation, and (ii) audited, if the City commissions an audit of such financial statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the City shall file unaudited financial statements within such period and audited financial statements for the applicable Fiscal Year to the MSRB, when and if the audit report on such statements becomes available. If the City changes its Fiscal Year, it will file notice thereof with the MSRB of the change (and of the date of the new Fiscal Year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. C. Notice of Certain Events. The City shall file notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; (7) Modifications to rights of Holders of the Bonds, if material; (8) Bond calls, if material, and tender offers; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds, if material; (11) Rating changes; 27638142.12 -53- (12) Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) Appointment of a successor or additional Paying Agent/Registrar or the change of name of a Paying Agent/Registrar, if material. For these purposes, any event described in the immediately preceding paragraph (12) is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall file notice with the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with this Section by the time required by this Section. D. Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give notice of any deposit that causes the Bonds to be no longer Outstanding. The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY 27638142.12 -54- THE CITY, WHETHER NEGLIGENT OR WITH OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. The provisions of this Section may be amended by the City from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Bonds. The City may also repeal or amend the provisions of this Section if the SEC amends or repeals the applicable provisions of the Rule or any court of final jurisdiction enters judgment that such provisions of the Rule are invalid, and the City also may amend the provisions of this Section in its discretion in any other manner or circumstance, but in either case only if and to the extent that the provisions of this sentence would not have prevented an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds, giving effect to (a) such provisions as so amended and (b) any amendments or interpretations of the Rule. If the City so amends the provisions of this Section, the City shall include with any amended financial information or operating data next provided in accordance with this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. E. Information Format — Incorporation by Reference. The City information required under this Section shall be filed with the MSRB through EMMA in such format and accompanied by such identifying information as may be specified from time to time thereby. Under the current rules of the MSRB, continuing disclosure documents submitted to EMMA must be in word -searchable portable document format (PDF) files that permit the document to be saved, viewed, printed, and retransmitted by electronic means and the series of obligations to which such continuing disclosure documents relate must be identified by CUSIP number or numbers. Financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any 27638142.12 -55- document (including an official statement or other offering document) available to the public through EMMA or filed with the United States Securities and Exchange Commission. SECTION 47: Book -Entry Only System. The Bonds are initially registered so as to participate in a securities depository system (the DTC System) with the Depository Trust Company, New York, New York, or any successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the Bonds shall be issued (following cancellation of the Initial Bond described in Section 7) in the form of a separate single definitive Bond. Upon issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as the nominee of DTC, and all of the Outstanding Bonds shall be registered in the name of Cede & Co., as the nominee of DTC. The City and the Paying Agent/Registrar are authorized to execute, deliver, and take the actions set forth in such letters to or agreements with DTC as shall be necessary to effectuate the DTC System, including the Letter of Representations attached hereto as Exhibit G (the Representation Letter). With respect to the Bonds registered in the name of Cede & Co., as nominee of DTC, the City and the Paying Agent/Registrar shall have no responsibility or obligation to any broker-dealer, bank, or other financial institution for which DTC holds the Bonds from time to time as securities depository (a Depository Participant) or to any person on behalf of whom such a Depository Participant holds an interest in the Bonds (an Indirect Participant). Without limiting the immediately preceding sentence, the City and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any Depository Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Depository Participant or any other person, other than a registered owner of the Bonds, as shown on the Security Register, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the delivery to any Depository Participant or any Indirect Participant or any other Person, other than a Holder of a Bond, of any amount with respect to principal of, premium, if any, or interest on the Bonds. While in the DTC System, no person other than Cede & Co., or any successor thereto, as nominee for DTC, shall receive a bond certificate evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks or drafts being mailed to the Holder, the word "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. In the event that (a) the City determines that DTC is incapable of discharging its responsibilities described herein and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) DTC or the City determines that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the City shall notify the Paying Agent/Registrar, DTC, and the Depository Participants of the availability within a reasonable period of time through DTC of bond certificates, and the Bonds shall no longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that time, the City may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a securities depository system, as may be acceptable to the City, or such depository's agent or designee, and if the City and the Paying Agent/Registrar do not select such alternate securities depository system then the Bonds may be registered in 27638142.12 -56- whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall designate, in accordance with the provisions hereof. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter. SECTION 48: Further Procedures. The officers and employees of the City are hereby authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the City all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the initial sale and delivery of the Bonds, the Agreement, the Paying Agent/Registrar Agreement, and the Purchase Contract. In addition, prior to the initial delivery of the Bonds, each Authorized Official and Bond Counsel are hereby authorized and directed to approve any technical changes or corrections to this Ordinance or to any of the instruments authorized and approved by this Ordinance necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Ordinance and as described in the Official Statement, (ii) obtain a rating from any of the national bond rating agencies, or (iii) obtain the approval of the Bonds by the Texas Attorney General's office. In case any officer of the City whose signature shall appear on any certificate shall cease to be such officer before the delivery of such certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 49: Unavailability of Authorized Publication. If, because of the temporary or permanent suspension of any newspaper, journal, or other publication, or, for any reason, publication of notice cannot be made meeting any requirements herein established, any notice required to be published by the provisions of this Ordinance shall be given in such other manner and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall most effectively approximate such required publication and the giving of such notice in such manner shall for all purposes of this Ordinance be deemed to be in compliance with the requirements for publication thereof. SECTION 50: No Recourse Against City Officials. No recourse shall be had for the payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon or on this Ordinance against any official of the City or any person executing any Bond. SECTION 51: Automatic Budget Amendments to Reflect Final Debt Service Payments. To the extent that the City Council has adopted an annual budget that includes payment of debt service on any Bonds issued (or to be issued) pursuant to this Ordinance based on the City's reasonable expectations and projections relative to those Bonds, such budget entries shall, upon the issuance of Bonds, be automatically adjusted to reflect actual debt service payments on those Bonds coming due during the period of time covered by such budget. Each Authorized Official, or the designee thereof, is authorized to make such necessary budget entries and/or adjustments to reflect these final debt service amounts. 27638142.12 -57- SECTION 52: Covenants of Compliance. The City shall faithfully and punctually perform all duties with reference to the System required by the Act, all other applicable laws of the State of Texas, and the provisions of this Ordinance and that the City shall render no free service to any customers or other persons. SECTION 53: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine, or neuter gender shall be considered to include the other genders. SECTION 54: Ancillary Bond Contracts. Though such parties may be identified, and the entry into a particular form of contract may be authorized herein, the City Council hereby delegates to each Authorized Official the authority to independently select the counterparty to any agreement with any paying agent/registrar, rating agency, securities depository, escrow agent, open market securities bidding agent, verification agent or any other contract that is determined by an Authorized Official, the City's Financial Advisor, or the City's Bond Counsel to be necessary or incidental to the issuance of the Bonds as long as each of such contracts has a value of less than the amount referenced in Section 2252.908 of the Texas Government Code (collectively, the Ancillary Bond Contracts); and, as necessary, to execute the Ancillary Bond Contracts on behalf and as the act and deed of the City. The Governing Body has not participated in the selection of any of the business entities which are counterparties to the Ancillary Bond Contracts. SECTION 55: City's Consent to Provide Information and Documentation to the Texas MAC. The Municipal Advisory Council of Texas (the Texas MAC), a non-profit membership corporation organized exclusively for non-profit purposes described in section 501(c)(6) of the Internal Revenue Code and which serves as a comprehensive financial information repository regarding municipal debt issuers in Texas, requires provision of written documentation regarding the issuance of municipal debt by the issuers thereof. In support of the purpose of the Texas MAC and in compliance with applicable law, the City hereby consents to and authorizes any Authorized Official, the City's Bond Counsel, and/or the City's Financial Advisor to provide to the Texas MAC information and documentation requested by the Texas MAC relating to the Certificates; provided, however, that no such information and documentation shall be provided prior to the Closing Date. This consent and authorization relates only to information and documentation that is a part of the public record concerning the issuance of the Bonds. SECTION 56: Effective Date. This Ordinance shall be in force and effect from and after its final passage, and it is so resolved. 27638142.12 [The remainder of this page intentionally left blank] -58- SIGNED AND SEALED THIS 28th DAY OF MARCH, 2017. CITY OF CORPUS CHRISTI, TEXAS Mayor Pro Tem ATTEST: City Secretary (SEAL) APPROVED THIS 28th DAY OF MARCH, 2017: Miles Risley, City Attorney 27638142.12 S-1 THE STATE OF TEXAS COUNTIES OF NUECES, ARANSAS, KLEBERG, AND SAN PATRICIO CITY OF CORPUS CHRISTI § § § § § § § I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 28th day of March, 2017, authorizing the issuance of the City's Utility System Junior Lien Revenue Refunding Bonds, Series 2017A, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 28th day of March, 2017. 27638142.12 City Secretary (CITY SEAL) S-2 The foregoing ordinance was read for the first time and passed to its second reading on this the 21st day of March, 2017, by the following vote: Vacant Rudy Garza Carolyn Vaughn Paulette Guajardo Ben Molina Michael Hunter Lucy Rubio Joe McComb Greg Smith That the foregoing ordinance was read for the second time and passed finally on this the 28th day of March, 2017, by the following vote: Vacant Rudy Garza Carolyn Vaughn Paulette Guajardo Ben Molina Michael Hunter Lucy Rubio Joe McComb Greg Smith PASSED AND APPROVED, this the 28th day of March, 2017. ATTEST: Rebecca Huerta City Secretary 27638142.12 S-3 Lucy Rubio Mayor Pro Tem INDEX TO SCHEDULES AND EXHIBITS Schedule I Schedule of Refunded Obligations Schedule II Approval Certificate Exhibit A Paying Agent/Registrar Agreement Exhibit B Purchase Contract Exhibit C Escrow Agreement Exhibit D Notices of Redemption Exhibit E Description of Annual Financial Information Exhibit F Form of Reimbursement Agreement Exhibit G DTC Letter of Representations 27638142.12 S-4 SCHEDULE I Schedule of Refunded Obligations 1. Federal Contract No. 6-07-01-X0675 entered into by an among the United States of America, the City and the Nueces River Authority, dated June 30, 1976, and amended on June 16, 1980, with respect to the Nueces River Reclamation Project, and is currently outstanding in a principal amount of $ This Federal Contract will be prepaid in full on , 2017. 2. "City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2005", dated January 1, 2005, in the original principal amount of $70,390,000 and maturing on July 15 in each of the years 2018 through 2020 in the aggregate principal amount of $27,520,000. 27638142.12 Schedule I-1 27638142.12 SCHEDULE II Approval Certificate See Tab No. Schedule II -1 27638142.12 EXHIBIT A Paying Agent/Registrar Agreement See Tab No. A-1 27638142.12 EXHIBIT B Purchase Contract See Tab No. B-1 27638142.12 EXHIBIT C Escrow Agreement See Tab No. C-1 27638142.12 EXHIBIT D Notices of Redemption See Tab No. D-1 EXHIBIT E Description of Annual Financial Information The following information is referred to in Section 46 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The City's audited financial statements for the most recently concluded Fiscal Year or to the extent these audited financial statements are not available, unaudited financial statements of the City for the most recently concluded Fiscal Year. 2. Tables 1 through 23 contained in the Official Statement; and the Audited Financial Statement of the City, as set forth in Appendix B to the Official Statement. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to above. 27638142.12 E-1 27638142.12 EXHIBIT F Form of Reimbursement Agreement See Tab No. F-1 27638142.12 EXHIBIT G DTC Letter of Representations See Tab No. G-1 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 7, 2017 TO: Margie C. Rose, City Manager THRU: Sylvia Carrillo, Assistant City Manager FROM: Constance P. Sanchez, Director of Financial Services ConstanceP@cctexas.com (361) 826-3227 Appointment of Financial Advisor for Utility System Revenue Refunding Bonds, Series 2017A CAPTION: Motion authorizing the appointment of and approving the contract for M. E. Allison, & Co., as Financial Advisor for the City of Corpus Christi, Texas Utility System Revenue Refunding Bonds, Series 2017A in an amount not to exceed $77,520,000. PURPOSE: The City plans on refunding for savings Utility System revenue obligations related to Choke Canyon Dam, as well as any callable, outstanding Utility System Revenue Bonds in an amount not to exceed $77,520,000 BACKGROUND AND FINDINGS: Issuance of bonds requires utilization of a financing team which is made up of three parts: the financial advisor, bond counsel, and the underwriting syndicate. This agenda item authorizes the appointment of M. E. Allison & Co., Inc. as financial advisor for these transactions. See the attachment for the Financial Advisor's contract. Fulbright & Jaworski L.L.P. is currently under contract with the City to serve as the City's bond counsel and will serve as the second part of our financing team. The third part of the financing team is the underwriters, and selection of the syndicate of underwriters from the City's pool of approved underwriters is being recommended for delegation to the City Manager, Assistant City Manager, and Director of Financial Services. ALTERNATIVES: n/a OTHER CONSIDERATIONS: n/a CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON -EMERGENCY: n/a DEPARTMENTAL CLEARANCES: • Financial Services • Bond Counsel • City Attorney's Office 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): CIP Funds COMMENTS: n/a RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Financial Advisor Contract Form 1295 TELEPHONE FAX 210-930-4000 210-930-4001 INVESTMENT BANKERS 950 gae a?d Lm .% 7Ye Y.Z> January 12, 2017 City of Corpus Christi, Texas 1201 Leopard Corpus Christi, TX 78401 Re: Up to $77,520,000* City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2017A #***************************************************************************### In regard to serving as the City's financial advisor and consultant, we submit the following proposal or agreement for your approval and acceptance. 1. Term. This Agreement shall be terminated by the delivery to the Purchaser of all the securities described above, whether delivered all at one time or in installments. It may be extended for an additional period by mutual agreement in writing. This agreement may be terminated at any time by either of us by giving thirty (30) days written notice to the other party. 2. Duties. The duties and responsibilities to be performed under this agreement include consulting and advising the City in the development and implementation of a financing plan for the issuance and sale of up to $77,520,000* City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2017A. 3. Compensation. The fee will be based on the size of the issue, and computed on the attached schedule, Exhibit A. The fee will be due and payable from the proceeds of the Bonds. We would expect to be reimbursed for actual out-of-pocket expenses for telephone, photocopies, facsimile transmissions, printing, computer, if any, and travel incurred in connection with ratings, municipal bond insurance or Closing of such financing(s). 4. Special Conditions. In addition to the terms and obligations herein contained, this proposal and agreement is subject to the following special conditions: a) M. E. Allison & Co., Inc. will incur and pay on behalf of the City the approved expenses in relation to the issuance of the Bonds and will submit said expenses for reimbursement at Closing. Approved expenses will include, but not be limited to, printing, shipping and posting of Official Statement, printing of Bonds, and travel expenses in relation thereto, Bond sale advertisements, municipal bond insurance premiums, Attorney General's fees, etc. (b) The City will pay Bond Attorney, Rating Agency fees and Paying Agent/Registrar directly or will direct M. E. Allison & Co., Inc. to pay these Preliminary, subject to change Continued ... tel. sad. w Z., J. INVESTMENT BANK ERS January 12. 2017 City of Corpus Christi. Texas 1201 Leopard Re: Up to $77,520,000* City of Corpus Christi, Texas Utility System Junior Lien Revenue Refunding Bonds, Series 2017A Page 2 fees on behalf of the City from the cost of issuance proceeds subsequent to the closing of the hond transaction. (c) The City will at all times remain responsible for all fees incurred on behalf of the City in relation to the proposed hond issue. In the event the contemplated issue is not completed. the City will not owe the financial advisory Ice to M. E. Allison & Co.. Inc.. but the City will remain responsible for all expenses incurred by the Firm on behalf of the City as well as all direct expenses of the City including Bond Attorne) and Rating Agency fees. 5. This proposal is submitted in duplicate originals. When accepted by the City. it will constitute the entire agreement between the City and the undersigned for the purpose and considerations herein specified. Your acceptance gill he indicated by proper signatures of your authorised officers or representative on both copies and the rcturningof one executed copy to us. Respectfully submitted. M. E. ALLISON & CO.. INC. Authorised Representative ACCEPTED on behalf of the City of Corpus Christi. Texas the clap of 2017 Authorised Official ATTEST: City Secretary Preliminary, subject to change. TELEPHO1JE FAX 210-930-4000 210 930-4001 ./eKsfeedews K,L4 INVESTMENT BANKERS cSfoseandia ..% 7a,2Oftf8Jf EXHIBIT A FINANCIAL ADVISORY FEE SCHEDULE GENERAL OBLIGATION BONDS And Not More than More than $ $ 250,000 $7,500 plus $20.00 per $1,000 for all over $150,000 250,000 350,000 $9,500 plus $10.00 per $1,000 for all over $250,000 350,000 500,000 $10,500 plus $8.00 per $1,000 for all over $350.000 500,000 700,000 $11,700 plus $7.00 per $1,000 for all over $500,000 700.000 1.000,000 $13.100 plus $6.00 per $1,000 for all over $700,000 1.000,000 1,500,000 $14,900 plus $5.00 per $1,000 for all over $1,000,000 1,500,000 5,000,000 $17,400 plus $3.00 per $1,000 for all over $1,500,000 5.000,000 10,000,000 $27,900 plus $1.65 per $1.000 for all over $5,000,000 10,000,000 20,000,000 $36,150 plus $1.00 per $1,000 for all over $10,000,000 20,000,000 No Limit $46,150 plus $0.85 per $1,000 for all over $20,000,000 REVENUE BONDS, COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, REFUNDING BONDS, OBLIGATIONS USING A REVENUE SOURCE AS REPAYMENT, DIRECT SUBSIDY OBLIGATIONS OR LEASE PURCHASE In the event the Bonds to be issued are Revenue Bonds or Combination Tax and Revenue Certificates of Obligation. Refunding Bonds, Obligations using a revenue source as repayment, Direct Subsidy Obligations or Lease Purchase, the fee shall be the amount computed from the above schedule, plus 25%. CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-154226 Date Filed: 01/13/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. M. E. Allison & Co., Inc. San Antonio, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi, TX 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 2017 UJLRREF - FA Financial Advisory Services 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary Seal, Mark San Antonio, TX United States X Seal, Michael San Antonio, TX United States X Allison, Christopher San Antonio, TX United States X Allison Jr., Al San Antonio, TX United States X 5 Check only if there is NO Interested Party. ❑ 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. pT•:Y PVP` AMANDA M MACDANIEL 1 0 ItY co� &pfl��S�S yOHH BORES *4 Jr * 08 2512020 OF NOTARY ID: 130796673 gnature of authorized nt of contracting business entity , this the day of , AFFIX NOTARY STAMP / SEAL ABOVE /� Sworn and subscribed before me, by the said a, k /T3C �to 20 to certifywhich, witness myhand and seal of office. 1 7 ./13 a J e ( �Qj�r+cA,,. ar7"456-17-cJ�AIVANCIS 112er Signature of icer administering oath Printed name of offi administering oath Ti of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us AGENDA MEMORANDUM Future item for the City Council meeting of March 21, 2017 Action Item for the City Council meeting of March 28, 2017 DATE: TO: Margie C. Rose, City Manager March 6, 2017 FROM: Mike Markle, Chief of Police mikema@cctexas.com 886-2604 Approval to submit a grant application to the State of Texas, Office of the Governor's Homeland Security Grants Division for FY 2017 funding available under the Local Border Security Program Grant CAPTION: Resolution authorizing the City Manager, or designee, to submit a grant application in the amount of $189,612.88 to the Office of the Governor Homeland Security Grants Division for funding eligible under the FY 2017-18 Local Border Security Program Grant. PURPOSE: The City must apply for these funds each year. BACKGROUND AND FINDINGS: Funding is available to enhance law enforcement patrols in an effort to deter and facilitate directed actions to interdict criminal activity. The Police Department will deploy officers on an overtime basis to conduct direct actions and operations within the city limits and ETJ targeting known drug, currency and human trafficking routes operating in the South Texas area to points north. The funding provides for overtime, retirement for sworn officers and mileage. There is no City match required. Funding is available from September 1, 2017 — August 31, 2018. 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: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Police Grants Fund Comments: RECOMMENDATION: Staff recommends submitting the application. LIST OF SUPPORTING DOCUMENTS: Resolution Resolution authorizing the City Manager, or designee, to submit a grant application in the amount of $189,612.88 to the Office of the Governor Homeland Security Grants Division for funding eligible under the FY 2017-18 Local Border Security Program Grant. WHEREAS, the City of Corpus Christi agrees provide applicable matching funds for the said project, with the understanding that matching funds are not required by the Homeland Security Grant Program grant application; WHEREAS, the City of Corpus Christi agrees that in the event of loss or misuse of the Office of the Governor funds, the City of Corpus Christi assures that the funds will be returned to the Office of the Governor in full; and WHEREAS, the City of Corpus Christi designates the City Manager or designee as the grantee's authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or designee, is authorized to submit a grant application in the amount of $189,612.88 to the Office of the Governor Homeland Security Grants Division for funding eligible under the FY 2017-18 Local Border Security Program Grant. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta Mayor City Secretary Corpus Christi, Texas of The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 7, 2017 TO: Margie Rose, City Manager FROM: E. Jay Ellington, Director, Parks and Recreation Department JavEll(c�cctexas.com 361-826-3464 Public Art for Collier Pool CAPTION: Motion authorizing the City Manager or designee to execute documents necessary to purchase a work of art created in painted steel, by the artist group Monument Fine Art and Sculpture Conservation, in the amount of $17,500 for the Aquatic Facility Upgrades and Improvements — Collier Pool Project to fulfill the public art requirement. (Bond 2012 Proposition 4) PURPOSE: Authorize an artist agreement for permanent art for Collier Pool as part of the City's public art program. BACKGROUND AND FINDINGS: Located near the entrance Collier Pool, approved with 2012 Bond projects, the proposed functional art shade structure by artist group Monument Fine Art and Sculpture Conservation will be approximately 25 feet long by 16 feet wide and ranging from 11 to 16 feet tall made of industrial urethane painted steel birds attached to galvanized steel bars. The proposal was unanimously approved by the Arts and Cultural Commission at their March 7, 2017 meeting. ALTERNATIVES: Do not approve purchase of artwork. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: This project is being funded according to Public Art Policies and Guidelines. These policies and guidelines were passed by the City Council on March 10, 1987. Per the Public Art Ordinance, Ordinance No. 21435; Municipal public art program; Sec. 2-109 (e)(1) — Program Administration. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal, Finance FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $ 17,500 $ 17,500 Encumbered/ Expended Amount This item BALANCE $ 17,500 $ 17,500 Fund(s): Bond Fund 3293 Comments: None RECOMMENDATION: Staff recommends approval of this motion. LIST OF SUPPORTING DOCUMENTS: Artist Agreement Attachment—Concept drawing of artwork Page 1 of 15 AGREEMENT FOR COMMISSION OF PUBLIC ART BETWEEN THE CITY OF CORPUS CHRISTI AND MONUMENT FINE ART AND SCULPTURE CONSERVATION LLC FOR ARTWORK AT COLLIER POOL This agreement ("Agreement") is entered into by and between the City of Corpus Christi, Texas, a home -rule municipal corporation ("city), acting through its duly authorized City Manager or the City Manager's designee ("City Manager") and Monument Fine Art and Sculpture Conservation LLC of Corpus Christi, Texas ("Artist"). WHEREAS, the City has allocated funds for the selection, purchase, and placement of a public work of art at, in, or near the selected site of the Collier Pool located at 3801 Harris Dr., Corpus Christi, Texas, 78411 ("Project Premises"); WHEREAS, Artist submitted a proposal to City's Arts and Cultural Commission ("Comm ission"); WHEREAS, the City and Artist wish to set out the terms and conditions under which the Artwork is to be designed, fabricated, and installed in order to promote the integrity of Artist' ideas and statements as represented in the artist's proposal and as represented by and in the completed Artwork; NOW, THEREFORE, the City and the' Artist, for and in consideration of the covenants and agreements set out in this Agreement, the sufficiency of which is hereby acknowledged, agree as follows: Section 1. Preamble Language. The preamble language included above this initial numerated section is incorporated into this Agreement by reference and made a part of this Agreement for all intents and purposes. Section 2. Contract Administrator. The City's contract administrator for this Agreement is the City's Director of Parks and Recreation or designee ("Director"). Section 3. Artwork. The City, through this Agreement, contracts with Artist to provide professional services in designing, constructing, finishing, transporting, and installing a permanent work of art ("Artwork"). A representative design of the Artwork, including plans and specifications, will be approved by the Director of Engineering and Director of Parks and Recreation, or their respective designees, and the Arts and Cultural Commission. The City and Artist acknowledge that Artist's preliminary design for the Artwork had previously been reviewed and approved by the City's Arts and Cultural Commission ("Commission"), a commission whose members are appointed by the City's City Council ("City Council"), and which preliminary Artwork design is shown as Exhibit A and incorporated in this Agreement by reference. Section 4. Term of Agreement. This Agreement, excluding certain covenants that survive this Agreement including, but not limited to, Sections 17, 19(B), 22, 23, and 25, will expire upon the City's final payment to Artist as govemed by Sections 5(B)(iv) and 8(C) of this Agreement. Section 5. Compensation and Payment Schedule. A. The City will pay directly to Artist a fixed fee of $17,500.00, which is full compensation for all services to be performed and all materials to be fumished by Artist under this Page 2 of 15 Agreement including but not limited to all costs associated with design, fabrication, windstorm certification, permitting, installation, and insurance. The payment of compensation to Artist, at any time during the term of this Agreement, will not be deemed a waiver of any right of the City or acceptance, by the City, of defective performance by Artist. 8. The fee will be paid in the following installments, each installment to represent full and final payment for all services and materials provided prior to the payment thereof: (i) $2,625 will be remitted by the City to the Artist within ten (10) working days of this Agreement being signed by both parties, (ii) $8,750 will be remitted by the City to the Artist within ten (10) working days of the plans and specifications being approved by the City (iii) $4,375 will be remitted by the City to the Artist within ten (10) working days of the Artwork being completed in Artist's studio (iv) $1,750 within ten (10) working days of the Artwork being installed and Notice of Final Acceptance has been issued accepted Section 6. Fabrication of Artwork. Artist shall furnish all labor, tools, materials, machinery equipment, and incidentals necessary for the execution of the Artwork. Section 7. Completion of Artwork. The Artwork should be fully fabricated and ready for installation no later than 180 days after contract execution. Deviation from this deadline requires written notice to the City, but in no way shall fabrication and installation take more than 240 days. Section 8. Notice of Substantial Completion, Notice of Acceptance, and Notice of Final Acceptance. A. Director, or designee, shall inspect the Artist's project design for the Artwork. Upon acceptance of the Artwork design and obtain Artist's obtaining all required building permits and evidence of windstorm certification, the City shall provide Artist with "Notice of Acceptance" and will issue payment to Artist, under Section 5(B)(ii) of this Agreement ("Notice of Acceptance"). Upon receipt of a deficiency notice, Artist will be given a reasonable time in which to correct all deficiencies noted by the City. Artist shall assume all costs associated with the correction of any deficiencies noted. Upon correction of all deficiencies, the City shall notify Artist in writing of the City's accepted arrival of the Artwork and issue a Notice of Acceptance. B. Artist shall send to Director a written notice of substantial completion ("Notice of Substantial Completion") when the Artwork has been substantially completed in accordance with the plans and specifications described in Exhibit A and will issue payment to Artist, under Section 5(B)(iii) of this Agreement. C. Upon installation of the Artwork and site cleanup, the City shall notify Artist in writing of its final acceptance ("Notice of Final Acceptance") of the Artwork and will issue payment to Artist, under Section 5(B)(iv) of this Agreement. Final acceptance shall not to be unreasonably withheld. Site cleanup shall consist of Artist cleaning and removing from the installation site all surplus and discarded materials, temporary structures, and Page 3 of 15 debris of every kind occasioned by Artist's installation work in order to leave the installation site in a clean and orderly condition, substantially the same as that which originally existed. Section 9. Installation of the Artwork. Artist shall provide plans and specifications for installation of the Artwork. Artist will also be contractually responsible for all completion costs associated with construction and installation of the Artwork. Artist shall be contractually responsible for the physical installation of the Artwork and all completion costs associated with the installation of the Artwork at the Project Premises, in compliance with the project's design firm. Section 10. Artwork Maintenance Instructions. Artist shall submit, within fourteen (14) days after installation of the Artwork, instructions regarding routine maintenance required for each component of the Artwork. Section 11. Work Standards. Artist must perform all work in a good and workmanlike manner and in accordance with all applicable Federal, State, and local laws and regulations. Section 12. Taxes. A. The City is a tax-exempt organization and no State of Texas or local sales taxes are due upon the Artwork by the City. The City shall supply Artist with a copy of the Texas Sales Tax Exemption Certificate ("Texas Certificate"). The City does not warrant that the Texas Certificate will be acceptable in any other jurisdiction outside the boundaries of Texas for tax-exempt purchases of materials or supplies to be used for the Artwork. B. Artist are solely responsible for the payment of any and all taxes that may become due to any taxing authority, agency, or entity with respect to services provided by Artist or with the Artwork that is the subject of this Agreement. This provision survives the expiration or earlier termination of this Agreement. C. Artist shall pay, before delinquency: all taxes, levies, and assessments arising from Artist' activities and undertakings pursuant to this Agreement; taxes levied on Artist' art studio and any improvements on the studio property or other place used for the fabrication and completion of the Artwork; taxes levied on Artist' equipment, tools, and machinery; and taxes levied on Artist' interest in this Agreement. Section 13. No Assignment of Work Without Authorization. The work and services required of Artist under this Agreement are personal to Artist and may not be assigned, delegated, or transferred without the express, written approval of the City. This provision does not prohibit Artist from having the Artwork cast at an approved foundry or from employing qualified personnel to work under Artist' direct supervision and control with respect to the Artwork. Section 14. Review of Work in Progress. Upon reasonable, prior notice to Artist, the City's officers, employees, and agents must be allowed to make reasonable inspections and reviews of Artist' progress with respect to the Artwork. Section 15. Insurance. A. Artist shall secure and maintain, during the term of this Agreement and at Artist's sole expense, the levels and types of insurance set out in Exhibit B, a copy of which is attached to this Agreement and incorporated in this Agreement by reference. Page 4 of 15 B. Any subcontractors, if approved by the City, must secure and maintain the same levels and types of insurance shown in Exhibit B prior to performing any work related to this Agreement. C. Artist shall provide proof, by certificate of insurance meeting the limits and requirements set out in Exhibit B, to the City's Risk Manager and Director upon the execution of this Agreement. D. The certificate of insurance must name the City as an additional insured and must provide the City with at least 30 days written notice of cancellation, material change, or intent not to renew any insurance coverage required by Exhibit B. Section 16. Artist's Expenses. Artist shall be responsible for the payments of all mailings for submission to the City, including any required insurance certificates; shipping costs of the Artwork to the City; all costs of travel by Artist; all labor costs for Artist' employees; and all other costs, unless specifically excluded in this Agreement, that are necessary for the proper performance of the work, services, and obligations required by Artist under this Agreement. Section 17. Public Information by Artist. Artist shall acknowledge the City's role in purchasing the Artwork in all public presentations and written, printed, or electronic publications of the Artwork following the execution of this Agreement. This obligation of Artist survives the termination of this Agreement. Section 18. Independent Contractor; Lack of Contractual Authority. A. Artist shall perform all work and services under this Agreement as an independent contractor and not as an agent, representative, or employee of the City. B. This Agreement does not establish Artist as the agents or legal representatives of the City for any purpose whatsoever, and Artist are not granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of, or in the name of, the City or to bind the City in any manner whatsoever. Section 19. Title; Copyright and License to Reproduce. A. Title to the Artwork will pass to the City upon remittance of the final payment. B. City obtains the rights to graphically reproduce, through photography or otherwise, the image of the Artwork including, but not limited to, the Artwork proposal and all preliminary studies, and to authorize third parties to graphically reproduce, through photography or otherwise, any and all of the same as are desired by the City for any purpose deemed appropriate by the City Manager. On each municipal reproduction, Artist will be acknowledged, using designations provided by Artist, to be the creator of the original Artwork depicted, provided that reproductions of any proposals and preliminary studies may not be identified as, or represented to be, the finished Artwork. The rights granted by this subsection survive the termination of this Agreement. Section 20. Risk of Loss. Artist shall take all measures reasonably necessary to protect the Artwork from loss or damage until Artist have completed delivery to the City of all materials that constitute and form the Artwork and ownership is transferred to the City. Artist shall obtain property insurance, as set out in Section 15 of this Agreement, for loss or damage of the materials paid for by the City while in Artist' possession and control. Page 5 of 15 Section 21. indemnification. To the extent allowed by Texas law, Artist ("Indemnitors") shall fully indemnify, save, and hold harmless the City and its officers, employees, and agents (collectively, "Indemnitees") against any and all liability, damage, loss, claims, demands, and actions of any nature whatsoever on account of personal injury (including, without limitation on the foregoing, premises defects, workers' compensation, and death claims), property loss, or damage of any kind whatsoever, including dishonest, fraudulent, negligent, or criminal acts of the Indemnitor or the Indemnitor's employees, representatives, or agents, acting alone or in collusion with others, which may arise out of, be caused by, or be in any way connected with, either proximately or remotely, wholly or in part, Indemnitor's design, fabrication, installation, repair, restoration, or removal of the Artwork and any act or omission of the Indemnitor or of any agent or employee of indemnitor pursuant to performance under the terms of this Agreement. The terms of this Indemnification are effective regardless of whether the injury, damage, or loss is caused by the sole, contributory, or concurrent negligence of the indemnitees or any of them individually. The Indemnitor covenants and agrees that, if the Indemnitee is made a party to any litigation against the indemnitor or in any litigation commenced by any party other than Indemnitor relating to this Agreement, Indemnitor shall, upon receipt of reasonable notice regarding commencement of litigation and at his/her own expense, investigate all these claims and demands, attend to their settlement or other disposition, defend Indemnitee in all actions based thereon with counsel satisfactory to the Indemnitee, and pay all charges of attorneys and all other costs and expenses of any kind arising from any said liability, damage, loss, claim, demand, or action. No liability attaches to the City by virtue of entering into this Agreement except as is expressly provided for under this Agreement. This provision survives the expiration or earlier termination of this Agreement. Section 22. Artist' Warranties. A. Warranty Against Defects. Artist warrant that the Artwork is designed to last for 20 years and guarantees the Artwork against faulty material and workmanship, including inherent vice. The term "inherent vice.' means a quality within the material(s) that compromise(s) the Artwork and, either alone or in combination, results in the tendency of the Artwork to destroy itself and its image. In the event of a claim by the City for faulty material or workmanship, Artist shall, at the City's option, remedy or pay for any loss or damage resulting from faulty material or workmanship that occurs or appears after the date the City issues a Notice of Final Acceptance of the Artwork. The City shall give written notice with reasonable promptness to Artist regarding observed defects in the Artwork that occur or appear. Nothing contained in this Agreement or any action whatsoever by the City constitutes an acceptance of work not done in accordance with the provisions of this Agreement or relieves Artist of liability or responsibility for faulty material or workmanship. This provision survives the expiration of this Agreement. B. Warranty of Title. Artist warrants and guarantees that, upon the City's final remittance of payment to Artist, the City acquires good title to the Artwork and that the Artwork is free from any and all claims, liens, and charges of and by any person or entity including, but not limited to, all employees and suppliers of Artist. This provision survives the expiration of this Agreement. Page 6 of 15 Section 23. Collection Management. A. The City reserves the right to manage its collection of art, including the Artwork, consistent with all applicable laws, the City's Charter, ordinances, and municipal policies. The City, through this Agreement, is commissioning and purchasing a work of public art, and the City shall determine the Artwork's placement at the Project Premises. This reservation of rights survives the expiration of this Agreement. B. The City reserves the right to manage its buildings, facilities, and public sites for public purposes and, in doing so, may determine that it is necessary to relocate or remove the Artwork or modify the site in or on which it is located. This reservation of rights by the City survives the expiration of this Agreement. Section 24. Force Majeure. No party to this Agreement will be liable for failures or delays in performance due to any cause beyond their control including, but not limited to, any failures or delays in performance caused by strikes, lock outs, fires, acts of God or the public enemy, common carrier, severe inclement weather, and riots or interference by civil or military authorities. Artist shall inform the City in writing and submit proof of force majeure within three (3) business days of the event or occurrence of force majeure. Artist' failure to inform and submit proof to the City of force majeure constitutes a waiver of this right as a defense. The failures or delays to perform extend the period of performance until these exigencies have been removed. Section 25. Survival of Terms. Termination or expiration of this Agreement for any reason does not release either party from any liabilities or obligations set forth in this Agreement that: 1) the parties have expressly agreed survive the termination or expiration; 2) remain to be performed; or 3) by their nature would be intended to be applicable following the termination or expiration. Section 26. Non -Discrimination. Artist shall not discriminate or permit discrimination against any person or group of persons, as to employment or in the performance of services under this Agreement, on the grounds of race, religion, national origin, sex, physical or mental disability, or age, or in any manner prohibited by the laws of the United States or the State of Texas. The Director retains the right to take the action as the United States may direct to enforce this non- discrimination covenant. Section 27. Compliance with Laws. A. Artist must comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances that may be relevant or applicable to Artist' performance under this Agreement. B. This Agreement is also subject to applicable provisions of the City's Charter. Section 28. Venue. All actions brought to enforce compliance with this Agreement must be brought in Nueces County, Texas, where this Agreement was executed and will be performed. Section 29. Interpretation. This Agreement will be governed by and construed in accordance with the laws of the State of Texas. Section 30. Notice. A. All notices, demands, requests, or replies provided for or permitted, under this Agreement by either party must be in writing and must be delivered by one of the Page 7 of 15 following methods: (1) by personal delivery; (2) by deposit with the United States Postai Service as certified or registered mail, return receipt requested, postage prepaid; (3) by prepaid telegram; (4) by deposit with an overnight express delivery service, for which service has been prepaid; (5) by fax transmission; or (6) e-mail. B. Notice deposited with the United States Postai Service in the manner described above shall be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or ovemight express delivery service in the manner described above will be deemed effective ane (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax or e-mail will be deemed effective upon transmission with proof of delivery to the receiving party. All communications must only be made to the following: IF TO CITY: City of Corpus Christi — Parks and Recreation Attn: Director 1201 Leopard; 3'd Floor P.O. Box 9277 Corpus Christi, Texas 78469-9277 (361) 880-3464 (361) 880-3864 Fax IF TO ARTIST: Monument Fine Art and Sculpture Conservation LLC 733 Bradshaw Dr. Corpus Christi, Texas 78412 Email: malczewskiandrewagmail.com; Email: paul@dancingmetal.com C. Either party may change the address to which notice is sent by using a method set out above. Artist shall notify City of an address change within ten (10) days after the address is changed. Section 31. Mechanics and Materialman's Liens. Artist must not allow the Artwork to be encumbered by any notice of intention to file a mechanic or materialman's lien or by the filing of a mechanic or materialman's lien. In the event that any notice of intention to file a mechanic or materialman's lien is received by Artist or a mechanic or materialman's lien is filed against the Artwork purporting to be for labor or materials, Artist must discharge the same within ten (10) days of the notice or filing. Section 32. Disputes. Any disputes concerning Artist' performance of this Agreement that are not disposed of by agreement between Artist and the Director will be referred to the City Manager or the City Manager's designated representative. If these persons do not agree upon a decision within a reasonable period of time not to exceed forty-five (45) days, the parties may pursue other legal rights and remedies to resolve the disputes. Section 33. Modification or Amendment. No modification or amendment of any of the terms of this Agreement will be effective unless the modification or amendment is in writing and signed by an authorized representative of each of the parties to this Agreement. Section 34. Waiver. A. The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, will not be deemed a waiver by said party of any of its rights under this Agreement. B. No waiver of any covenant or condition or of the breach of any covenant or condition of this Agreement by either party at any time, express or implied, will be taken to constitute Page 8 of 15 a waiver of any subsequent breach of the covenant or condition nor will justify or authorize the nonobservance on any other occasion of the same or any other covenant or condition of this Agreement. C. If any action by Artist requires the consent or approval of the City on one occasion, any consent or approval given on said occasion will not be deemed a consent or approval of the same action or any other action on any other occasion. D. Any waiver or indulgence of Mist' default of any provision of this Agreement will not be considered an estoppel against the City. It is expressly understood that, if at any time Artist are in default in any of its conditions or covenants of this Agreement, the failure on the part of the City to promptly avail Itself of said rights and remedies that the City may have will not be considered a waiver on the part of the City, but the City may at any time avail itself of said rights or remedies allowed under this Agreement, in law, or in equity. E. Any waiver or indulgence of the City's default of any provision of the Agreement will not be considered an estoppel against the Artist. It is expressly understood that, if at any time the City is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Artist to promptly avail themselves of said rights and remedies that the Artist may have will not be considered a waiver on the part of the Artist, but the Artist may at any time avail themselves of said rights or remedies allowed under this Agreement, in law, or in equity. Section 35. Severability. A. If, for any reason, any section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement or the application hereof 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 said term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected thereby, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word hereof 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, in lieu of each 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. Section 36. Acknowledgment and Construction of Ambiguities. The parties expressly agree that they have each independently read and understood this Agreement. By Artist' execution of this Agreement, Artist agree to be bound by the terms, covenants, and conditions contained in this Agreement. By agreement of the parties, any ambiguities in this Agreement may not be construed against the drafter. Section 37. Captions. The captions utilized in this Agreement are for convenience only and do not in any way limit or amplify the terms or provisions of this Agreement. Section 38. Disclosure of Interests Artist agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. Page 9 of 15 Artist agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this contract. For more information, please review the information on the Texas Ethics Commission website at https:/Iwww.ethics.state.tx.us. Artist agrees to comply with Chapter 176 of the Texas Local Government Code and file Form CIQ with the City Secretary's Office, if required. For more information and to determine if you need to file a Form CIQ, please review the information on the City Secretary's website at http://www.cctexas.com/government/city-secretary/conflict- disclosure/index. Section 39. Executory Agreement. This Agreement is not considered valid until signed by authorized representatives of each of the parties and approved by the City Council. Section 40. Entire Agreement. No verbal agreements or conversations between any officer, employee, or agent of the City and Artist or Artist' agent prior to the execution of this Agreement affect or modify any of the terms or obligations contained in this Agreement. Any verbal agreements or conversations prior to execution of this Agreement are considered unofficial information and in no way binding on either party. This Agreement and the attached and incorporated exhibits constitute the entire agreement between the City and Artist for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Agreement, unless contained in this Agreement, are expressly revoked, as the parties intend to provide for a complete understanding within the provisions of this Agreement and its exhibits of the terms, conditions, promises, and covenants relating to Artist' performance under this Agreement. EXECUTED IN DUPLICATE, each of which will be considered an original, on this the day of , 2017. CITY OF CORPUS CHRISTI Margie C. Rose City Manager Attest: Rebecca Huerta City Secretary APPROVED AS TO LEGAL FORM 2017 Assistant City Attorney Page 10 of 15 ARTIST By Printed Title: Ply- 1 See W1 4 ',\ Date: —S1 q t" LIST OF ATTACHED EXHIBITS Exhibit A: Artwork Plans and Specifications Exhibit B: Insurance Requirements Exhibit C: Artist's Disclosure of Interest Page 11 of 15 EXHIBIT A Collier Pool Public Art -- Concept Rendering Top View: f' Side View: i(1 Page 12 of 15 EXHIBIT B 1. ARTISTS INSURANCE REQUIRMENTS A. Artist must not commence work on the Artwork until all insurance required herein has been obtained and such insurance has been approved by the City. Artist must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been so obtained. B. Artist must furnish to the City's Risk Manager, two (2) copies of Certificates of Insurance, showing the following minimum coverage by insurance company(s) acceptable to the City's Risk Manager. The City must be named as an additional insured for the General liability policy and a blanket waiver of subrogation is required on all applicable policies. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -Day written notice of cancellation, non- renewal, material change or termination is required on all certificates Bodily Injury and Property Damage Per occurrence / aggregate COMMERCIAL GENERAL LIABILITY including: 1. Commercial Broad Form 2. Premise — Operations 3. Products - Completed Operations 4. Broad Form Property Damage 5. Contractual Liability 6. Independent Contractors 7. Fire Damage $1,000,000 COMBINED SINGLE LIMIT PROPERTY INSURANCE Fire and Extended coverage to include theft and vandalism exposures At a minimum, in amounts sufficient to cover the loss of materials paid for by the City while in the Artists' possession and control, in addition to the Artist's property TRANSPORTATION / INSTALLATION INSURANCE 1. During transportation of the artwork from the Artist's studio to Corpus Christi, TX 2. During the installation of the artwork at the Site In amounts sufficient to cover the replacement cost of the artwork WORKERS' COMPENSATION EMPLOYERS' LIABILITY Required for installation of Artwork on site MUST COMPLY WITH THE TEXAS WORKERS' COMPENSATION ACT AND PARAGRAPH II OF THIS EXHIBIT $500,000 Page 13 of 15 II. ADDITIONAL REQUIREMENTS A. As stated in Section 1-B, Table, Contractor must obtain the applicable workers' compensation coverage for its employees through a licensed insurance company in accordance with Texas law. The contract for coverage must be written on a policy and with endorsements approved by the Texas Department of Insurance. The coverage provided must be in an amount sufficient to assure that all workers' compensation obligations incurred by Contractor will be promptly met. B. Contractor's financial integrity is of interest to the City; therefore, subject to it's right to maintain reasonable deductibles in such amounts as are approved by the City, Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at its' sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no Tess than A- VII. C. The City shall be entitled, upon request and without expense, to receive copies of the policies, declarations page and all endorsements thereto as they apply to the limits required by the City, and may require the deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any such policies).Contractor shall be required to comply with any such requests and shall submit a copy of the replacement certificate of insurance to City at the address provided below within 10 days of the requested change. Contractor shall pay any costs incurred resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Management P.O. Box 9277 Corpus Christi, TX 78469-9277 (361) 826-4555- Fax # D. Contractor agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • Name the City and its officers, officials, employees, volunteers, and elected representatives as additional insured by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, on the General Liability and Business Auto Liability coverage. • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any suspension, cancellation, non -renewal or material change in coverage, and not Tess than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a suspension, cancellation, or non -renewal of coverage, Contractor shall provide a replacement Certificate of Insurance and Page 14of15 applicable endorsements to City. City shall have the option to suspend Contractors performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a materia[ breach of this agreement. F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractors' performance of the work covered under this agreement. H. It is agreed that Contractor's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. Page 15 of 15 EXHIBIT C Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1 - 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 it there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Numben 2017-177217 Date Filed: 03/10/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Monument Fine Art and Sculpture Conservation Corpus Christi, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form Is being filed. City of Corpus Christi 3 Provide the Identification number used by the governmental entity or state agency to track or Identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 111 Design and fabrication of "Wind and Sea" a sculptural shade structure for Collier Park. 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling 1 Intermediary 5 Check only If there Is NO Interested Party. X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. .?„” CAMRON COX is4,.:F;P4- e '_ Notary Public, Stole of Texas My Commission Expires VI�:;;; �� December 03, 2018 """"` I Signature of authorized agent of contracting business entity rf O1.V\ , this the I `I day of (, f-C AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said U See 20 I./ , W certify which, witness my hand and seal of office. f 1. a AirDit f" rl �cox, Sig" to of officer administering oath Printed name of officer administering oath Tilt of office( tministering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 3, 2017 TO: Margie C. Rose, City Manager FROM: E. Jay Ellington, Director, Parks and Recreation Department JayEll(c�cctexas.com 361-826-3464 Art Donation Agreement for La Retama Park CAPTION: Motion authorizing the City Manager, or designee, to execute an agreement with Rhodes Urban for the donation and acceptance of a cast aluminum art sculpture known as "Community Column" by Artist, Jack Gron, Art Professor at Texas A&M Corpus Christi, as well as an internationally known artist, honoring the memory of Norma Urban, a member of the Downtown Management Group, to be placed at La Retama Park. PURPOSE: Authorize an agreement to accept a donation of the "Community Column" art sculpture from Rhodes Urban created by artist, Jack Gron. The proposed location is at the corner of Mesquite and People's Street in La Retama Park. BACKGROUND AND FINDINGS: The Parks & Recreation Department recently completed improvements to La Retama Park funded through the 2012 Bond Program, the RTA and DMD. The sculpture complements the recent improvements and honors the memory of Norma Urban. The "Community Column" sculpture is welded aluminum made from cast aluminum tiles created by local Corpus Christi residents at a community art event. The sculpture, base, plaque and installation will be fully funded by Rhodes Urban. The Arts and Cultural Commission unanimously voted to recommend the City Council accept the donation from Rhodes Urban at its July 12, 2016 meeting. ALTERNATIVES: Do not approve acceptance of this art donation. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: This donation of art is being presented according to Public Art Policies and Guidelines. These policies and guidelines were passed by the City Council on March 10, 1987. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Legal, Finance FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered/ Expended Amount This item BALANCE Fund(s): N/A Comments: None RECOMMENDATION: Staff recommends approval of this motion. LIST OF SUPPORTING DOCUMENTS: Art Donation Agreement Attachment — Proposed Site Plan Community Column Specifications 1 AGREEMENT BETWEEN CITY OF CORPUS CHRISTI AND RHODES URBAN FOR DONATION AND ACCEPTANCE OF SCULPTURE TO BE PLACED AT LA RETAMA PARK RECITALS THIS AGREEMENT ("Agreement"), is made this t0 day of H 2017, by and between the City of Corpus Christi ("the City"), and Rhodes Urban ("Donor"), for the purpose of establishing a contractual relationship under which Donor will procure, deliver, install, and donate, and the City will accept, a sculpture including base, for display on City property at the La Retama Park, Corpus Christi, Texas. WHEREAS, Donor has offered to commission the creation of a sculpture ("the Sculpture") from Jack Gran ("the Artist") with the intention of donating the same to the City as a gift; and WHEREAS, the City and Donor (collectively "the Parties") desire to formalize their contractual relationship regarding the procurement and transfer of the Sculpture, and to define their rights, obligations and liabilities therefore; NOW, THEREFORE, in consideration of the mutual promises set forth herein, it is agreed by and between the parties as follows: TERMS 1. Donation of Sculpture. Donor agrees to procure, install, and donate the Sculpture including base, to the City, at Donor's sole cost and expense, and the City agrees to accept the Sculpture, all according to the terms of this Agreement. 2. Specifications of Sculpture. The Sculpture shall be an aluminum creation by Jack Gron (the "Artist"), a preliminary drawing for which is shown and represented in the drawings and photos included as Exhibit 1, attached to this agreement and herein incorporated. The final specifications for the Sculpture are subject to review and approval by the Director of Parks and Recreation ("City Director"), whose approval shall not be unreasonably withheld. The Sculpture shall include a plaque identifying the Artist and recognizing the Donor. The actual size, design, and wording of the explanatory plaque shall be subject to the final approval of the City Director of Parks and Recreation, whose approval shall not be unreasonably withheld. Donor shall ensure that the Sculpture and base are engineered for structural integrity and windstorm certified. 3. Donor's Responsibilities. Donor shall procure, install and donate the Sculpture to the City no later than 12 months after the date of City Council approval of this 2 Agreement. The Director of Parks and Recreation is authorized to approve extensions to these timelines. Donor represents and warrants that it has authority to enter into this Agreement and that Artist grants to the City an unlimited license to graphically reproduce the Sculpture for municipal noncommercial purposes in City brochures, catalogs, and use in any City media or other City publications. City shall endeavor to include the Artist name and Sculpture title in the City publications or reproductions. This provision shall survive termination or expiration of this agreement. Donor shall be solely and exclusively responsible for contacting, communicating with, and coordinating delivery of the Sculpture from the Artist to the City. Donor shall be solely and exclusively responsible for all costs related to procurement, delivery, and installation of the Sculpture, and supporting base. Donor shall provide the Director of Parks and Recreation or designee, within fourteen (14) days after installation of the Sculpture, instructions regarding routine maintenance required for the Sculpture. Donor shall ensure that all work performed on the City property complies with all applicable City, State, and Federal codes, statutes, ordinances, and regulations. Donor is responsible for obtaining all required permits prior to performance of any work an the City property. 4. City's Responsibilities. The City, acting through its Director of Parks and Recreation or designee shall accept delivery, receipt and ownership for the Sculpture at a mutually acceptable time and place. 5. Project Site. Donor shall arrange for the delivery and installation of the Sculpture and associated base at the location in La Retama Park as depicted in the attached Exhibit 2. Should Parks, Development Services, Engineering or Utility staff determine that this location is not suitable for the installation due to engineering structural analysis or impact to City utility infrastructure, then the Director of Parks and Recreation is authorized to work with Donor to identify another more suitable location within La Retama Park for placement of the Sculpture. 6. Risk of Loss or Damage. Donor shall be solely responsible and assume all risk of loss or damage to the Sculpture until receipt and acceptance thereof by the City. Donor assumes all liability related to installation of the Sculpture. Acceptance and ownership of the Sculpture by the City shall occur after delivery and successful installation at the project site. 7. Installation of Sculpture. Donor shall insure that its contractor hired by Donor to install the Sculpture presents and reviews the construction plans with the Engineering, Development Services and Parks and Recreation Departments for 3 their prior approval. Donor must include, in all construction contracts entered into for the installation of the Sculpture and any additional components described herein, a provision requiring the Donor's contractor, to indemnify, hold harmless, defend and insure City, including its officers, agents, and employees, against the risk of legal liability for death, injury or damage to persons or property, direct or consequential, arising or alleged to arise out of, or in connection with, the performance of any or all of the work, whether the claims and demands made are just or unjust, unless same are caused by the gross negligence or willful act of City, its officers, agents, or employees. Donor shall require Contractor to obtain all required City permits and the insurance described in the attached Exhibit 3 prior to beginning work on City property. 8. Relationship of Parties. No agent, employee, representative or subcontractor of Donor shall be deemed to be the employee, agent, representative or subcontractor of the City. None of the benefits provided by the City to its employees, including, but not limited to, compensation, insurance and unemployment insurance, are available from the City to Donor or its employees, agents, representatives or subcontractors. Donor will be solely and entirely responsible for its acts and for the acts of Donor's agents, employees, representatives and subcontractors during the performance of this Agreement. 9. Expiration; Termination. This Agreement shall expire automatically upon the City's receipt and acceptance of the Sculpture. Once the commission contract is signed with the artist, neither the City nor the Donor can terminate this agreement. 10. Indemnification/Hold Harmless. Donor shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. The provisions of this section shall survive the expiration or termination of this Agreement. 11. Entire Agreement. The written provisions and terms of this Agreement, together with all documents attached hereto, shall supersede all prior verbal statements of any officer or representative of and such statements shall not be effective or construed as entering into or forming a part of, or altering in any manner whatsoever, this Agreement. 12. Modification. No waiver, alteration or modification of any of provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of City and Donor. 13. Assignment. Any assignment of this Agreement by Donor without the written consent of the City Director of Parks and Recreation shall be void. 4 14. Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed below. Any written notice hereunder shall become effective as of the date of mailing by registered or certified mail, and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereinafter specified in writing. 15. Non -Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options and the same shall be and remain in full force and effect. 16. Resolution of Disputes, Governing Law. Should any dispute, misunderstanding or conflict arise as to the terms and conditions contained in this Agreement, the matter shall be referred to the City Manager, whose decision shall be final. In the event of litigation arising out of this Agreement, the prevailing party shall be reimbursed for its reasonable attorney fees from the other party. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year above written. 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GE TABLE A REINFORCEMENT TENSION LAPS AND EMBEDMENT qga-a"5Smt 42! 133a=31,2mI - ? i ._ i :: 1 L Fgd 3 y 1 32133313144 salaarte4III 53aeeretvE. it,. 3::: v2:3.2 ?s -ii:: vme$1 til 01-4 E;p; crs 3i;2;, ,a.113 332 1461M 4HIlII Bpoir ?MI; ilt*%301: A a 111 a � liE 1111;1 Milli ski 11111 111111111 $;IT)11111111; k 4 $ 11 11 1tsit URBAN VISIONS LA RETAMA PARK SCULPTURE 500 NORTH MESQUITE, CORPUS CHRISTI, TEXAS, 71401 STRUCTURAL NOTES 1 mug._ 44 234444 1444 41• 4;3 4 1ij**3* }g92 41141141 1 t10°q4 111111 4,1 11 111111 ill! 141111 4!s s t I I ME 441844.1 11.11701418•811 COM 488.-81•8•74804. 18884•4.....r.4w REVISIONS SNOLLYIA3EIB9tl 8.0 084 ..R • • •• 44817.11.1884411.• =M�dNMrMw Ymr.Ugitl 1s Mw M Y..• 0.. 61. 2.1 - •1M MMS ONI.U.Riltiad tlOa a nssi URBAN VISIONS LA RETAMA PARK SCULPTURE 500 NORTH MESQUITE, CORPUS CHRISTI, TEXAS, 78401 ELEVATIONS SECTIONS, & DETAILS k! ME MOCZ [.I41M iaa v...Yn.c.uw....re 4.4 O. R[V:510NS 10. NV MP Mi. • ®Ys 0, ,Wq1 1 Mut I. NOR. al 'My YA1 7 EXHIBIT 2 Location for La Retama Park Public Art Donation Sculpture location: site location is at the comer of Peoples Street and N. Mesquite Street, indicated in yellow on the map of La Retama Park below. 8 EXHIBIT 3 INSURANCE REQUIREMENTS I. CONTRACTOR'S LIABILITY INSURANCE A. Contractor must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. B. Contractor must furnish to the City's Risk Manager and Director of Parks and Recreation Department one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -day advance written notice of cancellation, non -renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Commercial Broad Form 2. Premises Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury $500,000 Per Occurrence AUTO LIABILITY (including) 1. Owned 2. Hired and Non -Owned 3. Rented :• Leased $500,000 Combined Single Limit WORT ERS'S COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employer's Liability Statutory and complies with Part II of this Exhibit. $500,000:°$500,0001$500,000 INSTALLATION FLOATER g Coverage shall be in the amount of the appraised value of Artwork. Coverage shall cover transportation of Artwork From point of origin thru installation and acceptance of City of Corpus Christi, Parks and Recreation Director. C. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II. ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers' Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. C. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; 10 • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non -renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non -renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor's performance of the work covered under this contract. I-1. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. EXHIBIT 2 Public Art Donation for La Retama Park Sculpture location: Site locatios at the corner of Peoples Street and N. Mesquite Street are indicated in yellow on the map of La Retama Park below. Schatzel Street 1 COMMUNITY COLUMN A 2.5 x 2.5 x 10 foot welded aluminu_m sculpture. Designed by jack Gron and executed with cast aluminum tiles from a community art event. CAST ALUMINUM DOVE 1.5" Aluminum Square Tubing I' COMMUNITY COLUMN 6061 Aluminum Alloy on all with joints fully welded 1/4" x 3" Aluminum / Flat Bar 3 x 3 x 1/4" Aluminum Angle (three verticals) Aluminum Angle (for bottom bracket) by Jack Gron for questions: 361.774.9851 jack.gron@tamucc.edu 1/4" Aluminum Plate Aluminum Plate 24"x21" 1/4" Aluminum Plate Aluminum Tiles applied at 10 rows of 4 across (3 sides = 120 Tiles welded to each other and to horizontal aluminum flat bars 1/4" x 3" Aluminum Flat Bar Tubing pport 1.5" Aluminum Square for su (2 places) 3x3x1/4" Aluminum Angle (three verticals) EI 1" holes (for bolt to concrete pad) TOP VIEW ALUMINUM WELDED BOTTOM BRACKET , I' Threaded hole 3/4" Stainless —AlIThread CD—Bronze Bushing Aluminum Tube and and Support Plate cD—Bronze Bushing Stainless Steel—gp Washer AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 21, 2017 TO: Margie C. Rose, City Manager FROM: E. Jay Ellington, Director of Parks and Recreation Department JayEll(c�cctexas.com (361) 826-3464 Kim Baker, Assistant Director of Financial Services -Purchasing Division KimB2 c(�cctexas.com (361) 826-3169 Food Program Purchase CAPTION: Resolution authorizing the City Manager to execute all documents necessary to purchase up to $191,360.00 in food supplies for the City Senior Center Meals Program through the Coastal Bend Council of Governments (CBCOG) participation in the TEXAS 20 Purchasing Cooperative as organized and administered by the Education Service Center, Region 20; and ratifying the purchase of food supplies for the said program in January - February 2017 through the CBCOG participation in the TEXAS 20 Purchasing Cooperative in the amount of $46,898.11 from Labatt Food Services and $9,352.13 from Hill Country Dairies. PURPOSE: Allowing the use of the CBCOG's Agreement with Texas 20 a Purchasing Cooperative that is under Region 20 of the Education Service Center gives staff maximum reach for products and services that are needed to keep various programs and services supported across the City, including but not limited to providing food for the seniors and the Senior Centers and for the summer youth programs. BACKGROUND AND FINDINGS: Currently the Food Services are being provided through an Agreement with the Coastal Bend Council of Governments through use of their Inter -Local Agreement with the Texas 20 Cooperative. Staff are utilizing this agreement to provide food and realized that the amount of food being provided under various programs was reaching a level requiring Council approval; staff needs to continue to provide these services and requests the continued use of this agreement with CBCOG to do so. Texas 20 has identified two vendors that are currently meeting the needs of the Senior Centers, Labatt Food Service provides the majority of the foods at an estimated six month expenditure of $155,742.00 and Hill Country Dairies provides the milk products at an estimated six month expenditure of $35,618.00 for a total estimated six month expenditure of $191,360.00. Texas 20 will rebid this Service periodically and therefore staff cannot determine which companies will have the bids for the following program term, but is requesting to continue this arrangement with Texas 20 at an expenditure not to exceed $191,360.00 for 2017 fiscal year and contract with the companies that are selected to provide the food for the following year. ALTERNATIVES: Providing Food Services is challenging as a number of local suppliers do not accept Purchase Orders and do not offer the discounts that can be obtained through these types of Purchasing Cooperatives, therefore staff considers use of the Cooperatives as the best option for the City. OTHER CONSIDERATIONS: No other product available. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement as allowed by Texas Government Code Article 791.011 Inter -Local Cooperation Act as amended. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Parks and Recreation FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $392,000.00 $0.00 $392,000.00 Encumbered / Expended Amount $115,104.00 $115,104.00 This item $191,360.00 $0.00 $191,360.00 BALANCE $85,536.00 $0.00 $85,536.00 Fund(s): Park Grants Fund 1067 Comments: The $191,360.00 financial impact shown above represents six months of expenditures that will be encumbered through the end of this fiscal year. Funding for this item is through a grant provided by Area Agency on Aging of the Costal Bend for the Elderly Nutrition Program and grants from the Texas Department of Agriculture for the Summer Food Service Program, and Texan's Feeding Texans program appropriated under Ordinance 030818 approved April 16, 2016. RECOMMENDATION: Staff recommends approval of the resolution as presented. LIST OF SUPPORTING DOCUMENTS: Resolution Resolution authorizing the City Manager to execute all documents necessary to purchase up to $191,360 in food supplies for the City Senior Center Meals Program through the Coastal Bend Council of Governments ("CBCOG") participation in the TEXAS 20 Purchasing Cooperative as organized and administered by the Education Service Center, Region 20; and ratifying the purchase of food supplies for said program in January - February 2017 through the CBCOG participation in the TEXAS 20 Purchasing Cooperative in amount of $46,898.11 from Labatt Food Services and $9,352.13 from Hill Country Dairies Whereas, Texas Local Government Code Section 271.102 (a) provides that a local government may participate in a cooperative purchasing program with another local government of this state or another state or with a local cooperative organization of this state of another state and Whereas, Texas Local Government Code 271.102 (c) provides that a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services; Whereas, Texas Government Code Chapter 791 Section 791.011 authorizes local governments to contract with another local government to perform governmental functions and services including purchasing in accordance with Chapter 791; Whereas, the Coastal Bend Council of Governments has entered into agreements for participation in the TEXAS 20 Purchasing Cooperative on behalf of seven Coastal Bend elderly nutrition program providers to allow for substantial savings for local nutrition programs to be realized by volume purchasing of specific commodity items; Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Manager, or designee, is authorized to execute all documents necessary under Texas Local Government Code Chapter 271 Subchapter F and Texas Government Code Chapter 791 to purchase up to $191,360 in food supplies for the City Senior Center Meals Program through the Coastal Bend Council of Governments participation in the Texas 20 Purchasing Cooperative as organized and administered by the Education Service Center, Region 20. SECTION 2. That the purchase of food supplies in January -February 2017 through the CBCOG participation in the TEXAS 20 Purchasing Cooperative in amount of $46,898.11 from Labatt Food Services and $9,352.13 from Hill Country Dairies for the City Senior Center Meals Program is hereby ratified. SECTION 3. This Resolution shall take effect and be in full force immediately after its adoption by the City Council. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Mayor Corpus Christi, Texas of The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 21, 2017 TO: Margie C. Rose, City Manager FROM: E. Jay Ellington, Director of Parks and Recreation Department JayEll(c�cctexas.com (361) 826-3464 Kim Baker, Assistant Director of Financial Services -Purchasing Division KimB2(c�cctexas.com (361) 826-3169 Rental and Servicing of Portable Toilets for Beach Operations CAPTION: Motion authorizing City Manager, or designee, to execute a service agreement with Progressive Waste Solutions of TX, Inc., dba Skid -o -Kan, of Corpus Christi, Texas for rental and servicing of portable toilets for Beach Operations, in accordance with Request for Bid No. 816, based on the lowest, responsive, responsible bid for a total amount not to exceed $22,600, with an estimated expenditure of $11,300 in FY 2016-2017. The term of this contract will be for 12 months with options to extend for two additional 12 -month periods at the sole discretion of the City. PURPOSE: This service agreement will provide rental and servicing of portable toilets for Beach Operations. BACKGROUND AND FINDINGS: Rental and servicing of portable toilets will be performed for the City's beach. These units are located throughout the beach areas that do not have appropriate alternative restroom facilities. In January of 2017, the Purchasing Division conducted a competitive Request for Bid process to obtain bids for a new contract. The City received one responsive, responsible bid out of 62 notifications issued, and is recommending the award to the lowest, responsive, responsible bidder, Progressive Waste Solutions of TX, Inc., dba Skid -o -Kan. 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: Park and Recreation - Beach Operations FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $49,000.00 $11,300.00 $60,300.00 Encumbered / Expended Amount $4,460.98 $0.00 $4,460.98 This item $11,300.00 $11,300.00 $22,600.00 BALANCE $33,239.02 $0.00 $33,239.02 Fund(s): General Fund Comments: The initial contract term is a total amount not to exceed $22,600, with an estimated expenditure of $11,300 is funded in FY2016-2017. The remaining balance of $11,300 will be requested in future year's budget. The total contract value will be $67,800.00 if all option years are executed. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Service Agreement Bid Tabulation SERVICE AGREEMENT NO. 816 Rental and Servicing of Portable Toilets for Beach Operations THIS Rental and Servicing of Portable Toilets for Beach Operations Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home -rule municipal corporation ("City") and Progressive Waste Solutions of TX, Inc., dba Skid -o -Kan ("Contractor'), effective upon execution by the City Manager or the City Manager's designee ("City Manager"). WHEREAS, Contractor has bid to provide Rental and Servicing of Portable Toilets for Beach Operations in response to Request for Bid/Proposal No. 816 ("RFB/RFP"), which RFB/RFP includes the required scope of work and all specifications and which RFB/RFP and the Contractor's bid or proposal response, as applicable, are incorporated by reference in this Agreement as Exhibits 1 and 2, respectively, as if each were fully set out here in its entirety. NOW, THEREFORE, City and Contractor agree as follows: 1. Scope. Contractor will provide Rental and Servicing of Portable Toilets for Beach Operations ("Services") in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety, and in accordance with Exhibit 2. 2. Term. This Agreement is for 12 months, with performance commencing upon the date of issuance of a notice to proceed from the Contract Administrator or Purchasing Division. This Agreement includes an option to extend the term for up to two additional 12 -month periods ("Option Period"), provided, the parties do so prior to expiration of the original term or the then -current Option Period. The decision to exercise the option to extend the term of this Agreement is, at all times, within the sole discretion of the City and is conditioned upon the prior written agreement of the Contractor and the City Manager. 3. Compensation and Payment. The total value of this Agreement is not to exceed $22,600.00, subject to approved extensions and changes. Payment will be made for Services completed and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. All pricing must be in accordance with the attached Bid/Pricing Schedule, as shown in City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 1 of 8 Attachment B, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. 4. 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. The City's Contract Administrator for this Agreement is as follows: Russell Armstrong Park and Recreation -Beach Operations Phone: 361-826-4168 Email: RussellA@cctexas.com 5. Insurance; Bonds. (A) Before performance can begin under this Agreement, the Contractor must deliver a certificate of insurance ("COI"), as proof of the required insurance coverages, to the City's Risk Manager and the Contract Administrator. Additionally, the COI must state that the City will be given at least 30 days' advance written notice of cancellation, material change in coverage, 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 10 days of the City Manager's written request. Insurance requirements are as stated in Attachment C, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. (B) In the event a payment bond, a performance bond, or both, are required of the Contractor to be provided to the City under this Agreement before performance can commence, the terms, conditions, and amounts required in the bonds and appropriate surety information are as included in the RFB/RFP or as may be added to Attachment C, and such content is incorporated here in this Agreement by reference as if each bond's terms, conditions, and amounts were fully set out here in its entirety. 6. Purchase Release Order. For multiple -release purchases of Services to be provided by the Contractor over a period of time, the City will exercise its right to specify time, place and quantity of Services to be delivered in the following manner: any City department or division may send to Contractor a purchase release order signed by an authorized agent of the department or division. The purchase release order must refer to this Agreement, and City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 2 of 8 Services will not be rendered until the Contractor receives the signed purchase release order. 7. Inspection and Acceptance. Any Services that are provided but not accepted by the City must be corrected or re -worked immediately at no charge to the City. If immediate correction or re -working at no charge cannot be made by the Contractor, a replacement service may be procured by the City on the open market and any costs incurred, including additional costs over the item's bid/proposal price, must be paid by the Contractor within 30 days of receipt of City's invoice. 8. Warranty. The Contractor warrants that all products supplied under this Agreement are new, quality items that are free from defects, fit for their intended purpose, and of good material and workmanship. The Contractor warrants that it has clear title to the products and that the products are free of liens or encumbrances. In addition, the products purchased under this Agreement shall be warranted by the Contractor or, if indicated in Attachment D by the manufacturer, for the period stated in Attachment D. Attachment D is attached to this Agreement and is incorporated by reference into this Agreement as if fully set out here in its entirety. 9. Quality/Quantity Adjustments. Any Service quantities indicated on the Bid/Pricing Schedule are estimates only and do not obligate the City to order or accept more than the City's actual requirements nor do the estimates restrict the City from ordering less than its actual needs during the term of the Agreement and including any Option Period. Substitutions and deviations from the City's product requirements or specifications are prohibited without the prior written approval of the Contract Administrator. 10. Non -Appropriation. The continuation of this Agreement after the close of any fiscal year of the City, which fiscal year ends on September 30th annually, is subject to appropriations and budget approval specifically covering this Agreement as an expenditure in said budget, and it is within the sole discretion of the City's City Council to determine whether or not to fund this Agreement. The City does not represent that this budget item will be adopted, as said determination is within the City Council's sole discretion when adopting each budget. 11. Independent Contractor. Contractor will perform the work required by this Agreement as an independent contractor and will furnish such Services in its own manner and method, and under no circumstances or conditions will any agent, servant or employee of the Contractor be considered an employee of the City. City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 3 of 8 12. Subcontractors. 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 Contract Administrator if the subcontractors were not named at the time of bid or proposal, as applicable. 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, including the necessity of providing a COI in advance to the City, are applicable to all subcontractors and their employees to the same extent as if the Contractor and its employees had performed the work. 13. Amendments. This Agreement may be amended or modified only by written change order signed by both parties. Change orders may be used to modify quantities as deemed necessary by the City. 14. Waiver. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 15. Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes and all other related taxes. Upon request, the City Manager shall be provided proof of payment of these taxes within 15 days of such request. 16. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand -delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows: IF TO CITY: City of Corpus Christi Attn: Russell Armstrong Title: Beach and Special Event Superintendent Address: 1201 Leopard St., Corpus Christi, Texas 78401 Fax: 361-826-4168 IF TO CONTRACTOR: Progressive Waste Solutions of TX, Inc. dba Skid -o -Kan Attn: William Puryear Title: Office Manager/Accts Payable Address: 622 McBride Ln., Corpus Christi, Texas 78408 Fax: 361-882-5351 City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 4 of 8 17. CONTRACTOR AGREES TO 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 WHATSOEVER ON ACCOUNT OF PERSONAL INJURIES (INCLUDING DEATH AND WORKERS' COMPENSATION CLAIMS), PROPERTY LOSS OR DAMAGE, OR ANY OTHER KIND OF INJURY, LOSS, OR 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 AGREEEMENT 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 CONTRIBUTORY NEGLIGENCE OF INDEMNITEES, BUT NOT IF BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH THE FAULT OF ANY OTHER PERSON. 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 SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING FROM ANY SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF CONTRACTOR UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 18. Termination. (A) The City Manager may terminate this Agreement for Contractor's failure to perform the work specified in this Agreement or to keep any required insurance policies in force during the entire term of this Agreement. 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. City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 5 of 8 (B) Alternatively, the City Manager may terminate this Agreement for convenience upon 30 days advance written notice to the Contractor. The City Manager may also terminate this Agreement upon 24 hours written notice to the Contractor for failure to pay or provide proof of payment of taxes as set out in this Agreement. 19. Assignment. No assignment of this Agreement by the Contractor, or of any right or interest contained herein, is effective unless the City Manager first gives written consent to such assignment. The performance of this Agreement by the Contractor is of the essence of this Agreement, and the City Manager's right to withhold consent to such assignment is within the sole discretion of the City Manager on any ground whatsoever. 20. Severability. Each provision of this Agreement is considered to be severable and, if, for any reason, any provision or part of this Agreement is determined to be invalid and contrary to applicable law, such invalidity shall not impair the operation of nor 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 had been omitted. 21. Order of Precedence. In the event of any conflicts or inconsistencies between this Agreement, its attachments, and exhibits, such conflicts and inconsistencies will be resolved by reference to the documents in the following order of priority: A. this Agreement and its attachments B. the bid solicitation document, including addenda (Exhibit 1) C. the Contractor's bid response (Exhibit 2) 22. Certificate of Interested Parties. Contractor agrees to comply with Texas Government Code Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of Interested Parties" as part of this Agreement. 23. Governing Law. This Agreement is subject to all federal, State, and local laws, rules, and regulations. The applicable law for any legal disputes arising out of this Agreement is the law of the State of Texas, and such form and venue for such disputes is the appropriate district, county, or justice court in and for Nueces County, Texas. 24. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 6 of 8 all prior negotiations, arrangements, agreements and understandings, either oral or written, between the parties. (SIGNATURE PAGE FOLLOWS) City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 7 of 8 CONTRACTOR Signature: Printed Name: (�e1? f��yea✓- .3r Title: ()Ft--; zP /✓IANC f er r Date: Z-2- - Z / % CITY OF CORPUS CHRISTI Signature: Printed Name: Title: Date: Attached. and Incorporated by Reference: Attachment A: Scope of Work Attachment B: Bid/Pricing Schedule Attachment C: Insurance/Bond Requirements Attachment D:. Warranty Requirements Incorporated by Reference Only: Exhibit 1: RFB/RFP No. 816 Exhibit 2: Contractor's Bid/Proposal Response City of Corpus Christi Service Agreement Standard Form Approved as to Legal Form 7/1/16 Page 8 of 8 Attachment A: Scope of Work 1. General Requirements The City of Corpus Christi is seeking an annual service contract for the rental, delivery, cleaning, maintenance, and services of chemical portable toilets, both regular units and ADA wheelchair accessible. The chemical portable toilets will be rented on a monthly, weekly, or daily basis including holidays, weekends, and special events around the City. 2. Scope of work A. Contractor shall comply with all sanitary conditions set forth in the City Codes and Ordinances as administered by the City -County Health Department. B. Contractor shall comply with all applicable certifications and licensing for operating equipment appropriate for the rental, delivery, cleaning, maintenance and service of units and provide them with the bid. C. Contractor shall provide all equipment and supplies required to place, pickup, clean, service, repair and/or relocate units. D. Contractor shall provide portable chemical toilet units fabricated from fiberglass, PVC plastic, or polyethylene. Each unit shall bear its own identification system of numbers, letters, or combination. E. Contractor shall provide and maintain a written Service Log affixed to the inside of each portable unit. The service log shall lists the date(s) of each maintenance service visit and initials of the individual(s) whom performed the service. F. Contractor shall provide units with doors that are self-closing, tight fitting, and shall have an inside lock. The exterior of the door shall include an occupancy meter to indicate when unit is occupied and unoccupied. G. Contractor shall remove all tank waste, clean and disinfect the inside, including but not limited to, the waste tank, walls, door, toilet seat, and floor, at no additional cost to City. H. Contractor shall properly dispose of all waste products removed from the portable toilets during the servicing and sanitizing. I. Contractor shall remove damaged or non-functional rental unit when found, either during cleaning procedure, or within 24 hours after notification from the Contract Administrator of the using department. 3. Special Instructions In -Season Months A. The Contractor will supply Beach Operations with ten regular portable toilet units and ten ADA portable toilet units. In -Season Months are April through October. B. Contractor shall service and sanitize all units three times a week during the in -season months. Service days will be Tuesday, Friday, and Sunday. Off -Season Months A. The Contractor will supply Beach Operations with ten ADA portable toilet units. Off-season months are November through February. B. Contractor shall service and sanitize all units three times a week during the off-season months. Service days will be Tuesday, Friday, and Sunday. Spring Break/Holidays A. Contractor shall service and sanitize all units six times a week in the month of March. B. Contractor will be notified of extra services during spring break and holidays by Beach Operations. C. In the event of short term rentals of a week or less, the Contractor shall provide more frequent servicing and sanitation as required by Beach Operations. D. Contractor shall provide extra ADA units and emergency services within 12 hours after vendor receives request. E. Contractor shall move units from place to place on various job sites as requested by the Contract Administrator. Units are to be moved within 12 hours after Contractor receives request. 4. Contractor Quality Control and Superintendence The Contractor shall establish and maintain a complete Quality Control Program that is acceptable to the Contract Administrator to assure that the requirements of the Contract are provided as specified. The Contractor will also provide supervision of the work to insure it complies with the contract requirements. Attachment B: Bid/Pricing Schedule 6o.us c� III CITY OF CORPUS CHRISTI a v �!� 4 BID FORM PURCHASING DIVISION RFB No. 816 COf PO RAlt� 1852 Rental and Servicing of Portable Toilets for Date: 02/06/2017 Beach Operations Progressive Waste Solutions of TX, Authorized Bidder: Inc. dba,, Skid -o -Kan Signature: �-� 1. Refer to "Instructions to Bidders" and Contract Terms and Conditions before completing bid. 2. Quote your best price for each item. 3. In submitting this bid, Bidder certifies that: a. the prices in this bid have been arrived at independently, without consultation, communication, or agreement with any other Bidder or competitor, for the purpose of restricting competition with regard to prices; b. Bidder is an Equal Opportunity Employer; and the Disclosure of Interest information on file with City's purchasing office, pursuant to the Code of Ordinances, is current and true. c. Bidder is current with all taxes due and company is in good standing with all required governmental agencies. d. Bidder acknowledges receipt and review of all addenda for this RFB. Scheduled Item Description Unit QTY Unit Price Total Months Extended Cost Standard Portable Toilets 1 Rental and Services three times per week EA 10 x $ 80.00 = $ 800.00 x 7 = $ 5,600.00 2 Rental and Services six times per week EA 10 x $ 150.00 = $1,500.00 x 1 = $ 1,500.00 ADA Portable Toilets 3 Rental and Services three times per week EA 10 x $ 105.00 = $1,050.00 x 11 = $ 11,550.00 4 Rental and Services six times per week EA 10 x $175.00 = $1,750.00 x 1 = $ 1,750.00 Non -Scheduled Item Description Unit QTY Unit Price Total Daily Extended Cost 5 ADA Portable Toilets Rental and Service EA 40 x $ 35.00 - 11,400.00 x 1 4Q - $1,400.00 $54,8Qa.QQ 6 ADA Portable Toilets Service EA 40 x $20.00 - 1800.00 x - $800.00 $32 TQQa:QQ *Items 5 and 6 Daily number is 1 and not 40 as released in RFB. No. Total $22,600.00 816. The totals above are the totals that will be awarded under the contract. ATTACHMENT C - INSURANCE REQUIREMENTS A. CONTRACTOR'S LIABILITY INSURANCE 1. Contractor must not commence work under this contract until all insurance required has been obtained_and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. 2. Contractor must furnish to the City's Risk Manager and Contract Administrator one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation endorsement is required on GL, AL and WC if applicable. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -day advance written notice of cancellation, non -renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Commercial Broad Form 2. Premises - Operations 3. Products/Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury $1,000,000 Per Occurrence $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2. Hired and Non -Owned 3. Rented/Leased $1,000,000 Combined Single Limit WORKERS'S COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employers Liability Statutory and complies with Part II of this Exhibit. $500,000/$500,000/$500,000 3. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. B. ADDITIONAL REQUIREMENTS 1. Applicable for paid employees, Contractor must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers' Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. 2. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. 3. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 4. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non -renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. 5. Within five (5) calendar days of a cancellation, non -renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 6. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. 7. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor's performance of the work covered under this contract. 8. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. 9. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2016 Insurance Requirements Purchasing Portable Toilet Rental and Service 12/16/2016 cg Risk Management Attachment D: Warranty Requirements No warranty requirement needed for the Service Agreement. CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-176412 Date Filed: 03/08/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Progressive Waste Solutions of Texas Inc. dba Skidokan Corpus Christi, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi Beach Operations 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. Event: 201- RFB 816 Portable toilets 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. X 6 AFFIDAVIT ri r„'n" I swear, or affirm, under"Inalty of perjury, that the above disclosure is true and correct. s SAY pU.Q'i•• ll•F.,+�"Y rte' : " *- My Notal, . ,' - :p -1,24•o k;i,- ExpiresSeptua,:.; 2:, 4, :' S' nature of authorized agent of contracting business entity ,,...., .. , AFFIX NOTARY STAMP / SEAL ABOVE '' '' \\ Sworn to and subscribed before me, by the said W kL L RA QN EWc(_ , this the day of J' ac V1 , 20 `--1 , to certify which, witness my hand and seal of office. 4-0 Signat e f officeadministering oath Printed name of offiLer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 AGENDA MEMORANDUM Future item for the City Council Meeting of March 21, 2017 Action item for the City Council Meeting of March 28, 2017 DATE: March 10, 2017 TO: Margie C. Rose, City Manager THRU: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3082 FROM: Valerie H. Gray, P.E., Executive Director, Public Works valerieg@cctexas.com (361) 826-3729 CAPTION: Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Jay Ellington, Director Parks & Recreation jayell@cctexas.com (361) 826-3476 Construction Contract Ocean Drive Park Improvements — Cole Park Bond Issue 2012 Proposition 4 Motion authorizing the City Manager, or designee, to execute a construction contract with JE Construction Services of Corpus Christi, Texas in the amount of $725,120 for the Ocean Drive Park Improvements — Cole Park for the base bid and additive alternates 1, 2 and 3 (Bond 2012, Proposition 4). PURPOSE: The purpose of this Agenda Item is to obtain authority to execute a construction contract with the lowest responsible bidder, JE Construction Services of Corpus Christi, Texas for the Ocean Drive Park Improvements — Cole Park. BACKGROUND AND FINDINGS: This project is part of Bond 2012 Proposition 4 — Ocean Drive Parks Repairs and Improvements. Bond 2012 Brochure Language: "The scope of this project includes improvements and repairs to Swantner and Cole Park. Improvements to Swantner Park include installation of an automatic irrigation system and repairs to sea wall. Improvements to Cole Park include completion of shoreline stabilization from Bond 2008 and other general improvements." PROJECT SCOPE: This project includes the removal and replacement for approximately 610 LF of the existing shoreline protection system at Cole Park. The existing stone and concrete debris system is in poor condition allowing severe erosion that is undermining the shoreline structures and infrastructure. The project was developed with a base bid and three additive alternatives as follows: Base Bid: Provides for the removal and replacement of approximately 610 LF for the existing shoreline protection system with new stacked stone, geotextile, stabilized sand and miscellaneous improvements. The stacked stones were specifically sized to best dissipate wave energy. Additive Alternative No. 1, 2 and 3: Each additive alternative extends the improvements of the base bid approximately 100 LF, pending the availability of funds. On February 1, 2017, the City received proposals from seven (7) bidders and the bids are as follows: Contractor Base Bid Add Alt 1 Add Alt 2 Add Alt 3 Total JE Construction Services Corpus Christi, TX $467,067.00 $88,378.00 $89,769.00 $79,906.00 $725,120.00 Garrett Construction Company Ingleside, TX 569,488.00 86,330.00 80,450.00 75,655.00 811,923.00 Safenet Services, LLC. Corpus Christi, TX 586,605.15 73,556.00 73,556.00 67,038.00 800,755.15 Lester Contracting, Inc. Port Lavaca, TX 603,600.00 88,100.00 88,100.00 88,100.00 867,900.00 Epic Energy Services, LLC. Sinton, TX 624,540.20 84,982.00 84,982.00 84,982.00 879,486.20 Apollo Environmental Strategies, Inc. Beaumont, TX 687,050.00 104,840.00 97,840.00 96,340.00 986,070.00 DM B Construction Corpus Christi, TX 848,750.50 126,438.00 126,438.00 126,438.00 1,228,064.50 Engineer's Estimate $610,000 $93,000 $90,000 $78,000 $871,000 ALTERNATIVES: 1. Authorize execution of the construction contract. (Recommended) 2. Do not authorize execution of the construction contract. (Not Recommended) OTHER CONSIDERATIONS: This project was approved November 6, 2012 in the Bond Issue 2012 Package under Proposition No. 4 — Parks and Recreation Improvements. HDR Engineering, Inc. was selected for this project as a result of RFQ No. 2012-03 Bond Issue 2012 and CIP Projects, dated August 31, 2012. CONFORMITY TO CITY POLICY: Complies with statutory requirements for construction contracts; §2, Article 10 of the City Charter regarding contracts; Conforms to FY 2016-2017 Capital Improvement Planning (CIP) Budget. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Parks and Recreation FINANCIAL IMPACT: ❑ Operatin ❑ Revenue Capital ❑ Not applicable Fiscal Year 2016-2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Budget $1,100,000 $1,100,000 Encumbered / Expended Amount 131,500 131,500 This item 725,120 725,120 Future Anticipated Expenditures This Project 152,307 152,307 BALANCE $91,073 $91,073 Fund(s): Parks and Recreation Bond Issue 2012 COMMENTS: Ocean Drive Park Improvements - Swantner Park was awarded by City Council on September 20, 2016 and is currently under construction. RECOMMENDATION: City staff recommends that a construction contract be awarded to JE Construction Services of Corpus Christi, Texas in the amount of $725,120 for the Ocean Drive Park Improvements — Cole Park for the base bid and additive alternates 1, 2 and 3. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Letter of Recommendation Form 1295 PROJECT BUDGET ESTIMATE Ocean Drive Park Improvements Cole Park BOND 2012, Proposition 4 FUNDS AVAILABLE: Parks and Recreation Bond 2012 CIP $1,100,000 TOTAL $1,100,000 FUNDS REQUIRED: Construction & Contingency Fees. 797,632 Construction (JE Construction Services) THIS ITEM 725,120 Contingency (10%) 72,512 Design Fees: Design - Cole Park 131,500 Preliminary Design (HDR Engineering, Inc.) 11,500 Engineering Design (HDR Engineering, Inc.) 120,000 Construction Testing and Inspection Fees. 37,795 Construction Materials Testing (Estimate) 9,795 Construction Inspection (Estimate) 28,000 Reimbursements: Total Reimbursements 42,000 Contract Administration (Engineering Svcs Admin/Capital Budget/Finance) 15,000 Engineering Services (Project Mgt/Constr Mgt) 26,000 Misc. (Printing, Advertising, etc.) 1,000 TOTAL $1,008,927 ESTIMATED PROJECT BUDGET BALANCE $91,073 IH -37 St Ord t 1'Drgan Ave 1U } edo St 51 0 tom SI V Crweman Ave Buford t tripa.-th St 4. t 'r c L. Corpus Christi ID` cia enyPauEl N }S ent eDuel 5. ] engeoug.mo s PROJECT LOCATION Cole Park Del Mer College Zi Si 4. "i- P P L ▪ fir. r � 4 i LOCATION MAP NOT TO SCALE O P. Perk Project Number: E14050 Ocean Drive Park Improvements (Cole Park) CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Corpus Chr sti Engineering Ocean Drive Park Improvements - Cole Park Bond 2012 Council Presentation March 21, 2017 Location Map IH -37 m ( z Morgan Ave 5 h 14447 ZS enyen lane ao St St g Agnes i0 ,.,an St :lemon Ave .// ord St Ocean Drive Park Improvements a a C II( F.�yObh C6 ss ,p .9.4 y S % 1' N C>C 4 Corpus Cher ti Engineering Vicinity Map Corpus Chrsti Engineering Project Scope Corpus chrsti Engineering Additive Alternate Shoreline Protection Reconstruction 2008 Shoreline Protection Reconstruction Base Bid: Shoreline Protection Reconstruction This project includes: • 610 Linear Feet of shoreline protection reconstruction using stacked stone • Three (3) Additive Alternates with an additional 100 linear feet of reconstructed stacked stone shoreline protection each Typical Section - Shoreline Protection Reconstruction Corpus Chr (1‘11140 Corpus Bay Side Existing Concrete Bulkhead New Stone New Cement Stabilized Sand New Geotextile Filter Fabric Land Side Existing Sidewal /i\/i\/\/ VVVVVVVVVV Approximate Existing Ground Project Schedule Corpus Chrsti Engineering 2016 2017 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Design Jan Fe b Mar Apr Bid / Award May Jun Jul Aug Construction Project Estimate: 120 Calendar Days 4 Months February 13, 2017 10028877 Mr. J. H. Edmonds, P.E. Director of Engineering Services City of Corpus Christi PO Box 9277 Corpus Christi, Texas 78469-9277 RE: OCEAN DRIVE PARK IMPROVEMENTS — COLE PARK (PROJECT NO. E14050) Dear Mr. Edmonds: HDR Engineering has reviewed and tabulated the bids for the above referenced project. There were seven bidders for the project (reference Attachment 2, Bid Tabulation). The bidders in ascending order when considering base bid amounts were JE Construction Services, Garrett Construction Company, Safenet Services, LLC, Lester Contracting, Inc., Epic Energy Services, LLC, Apollo Environmental Strategies, Inc., and DMB Construction. All discrepancies found are shown in the Bid Tabulation (Attachment 2,). The total base bid of JE Construction Services is $467,067.00, and they were the apparent low bidder. HDR's opinion of probable construction cost (OPCC) was based on recent projects of similar scope in the area and contained a 20% contingency. HDR's OPCC was $623,000. Attachment 1 to this letter provides an analysis of the total base bid from JE Construction Services to the other bidders and HDR's OPCC. JE Construction Services is a local company and has worked on local projects for the City of Corpus Christi and other clients. Their field personnel have the requisite experience and performed similar type work on previous City contracts. HDR recommends that the contract be awarded to JE Construction Services for the total Base Bid amount plus any or all of the Additive Alternate Items (1 through 3) provided that funds are available. hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401-0849 (361) 696-3300 Mr. J. H. Edmonds, P.E. February 13, 2017 Page 2 of 2 If you have any questions, please contact my office (361) 696-3352. Sincerely, HDR Engineering, Inc. c' Cameron Perry, P.E Coastal Practice Lead cc: Shane Torno, P.E. Attachments: 1. Analysis of Bids 2. Bid Tabulation 3. Contractor Submittal — JE Construction Services 4. Contractor Submittal — Garrett Construction Company 5. Contractor Submittal — Safenet Services, LLC 6. Contractor Submittal — Lester Contracting, Inc. 7. Contractor Submittal — Epic Energy Services, LLC 8. Contractor Submittal — Apollo Environmental Strategies, Inc. 9. Contractor Submittal — DMB Construction 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401-0849 (361) 696-3300 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 it there are interested parties Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-170594 Date Filed: 02/2312017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. JE Construction Services, LLC. Corpus Christi, TX United States 2 Name of governmental entity or state agency that Is a party to the contract for which the form is being filed. City of Corpus Christi — Engineering Services 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. E14050 Concrete Bulkhead 4 Name of Interested Party City, State, Country (place of business) Nature of interest . (check applicable) Controlling 1 Intermediary 5 Check If there Is NO Interested Party. only X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct . ` •�si'-I KAREN JUST Notry Public, Stole of Texas e4fte:1 ' f Octobers30, 2016e5 Signature of authorized agent of contractingusing AFFIX NOTARY STAMP / SEAL ABOVE INNr Swom to and subscribed before me, by the said,[ (Yr , this the ,j1�, day of ! -d 20 !] , to certify which, witness my hand and seal of office. _ _ i I A / /tel _Y-ovre...ylc Signature of s c administering oath Printed name of officer administering oath Title of officer administ . g oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1,0.277 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 1, 2017 TO: Margie C. Rose, City Manager THRU: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3897 Valerie H. Gray, P. E., Executive Director of Public Works valerieg©cctexas.com (361) 826-3729 FROM: Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 CAPTION: Construction Contract South Alameda Street from Ayers Street to Louisiana Avenue Bond 2012 Proposition 1 Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC Dba Clark Pipeline Services of Corpus Christi, Texas in the amount of $4,996,832.79 for South Alameda Street from Ayers Street to Louisiana Avenue for Base Bid 2. (Bond 2012 Proposition 1) PURPOSE: The purpose of this Agenda Item is to obtain authority to execute a construction contract for the South Alameda Street from Ayers Street to Louisiana Avenue Project. BACKGROUND AND FINDINGS: Bond 2012 Brochure description: "South Alameda Street from Ayers Street to Louisiana Avenue — This project includes full -depth repair of the existing roadway section, which varies between a four lane A-2 Arterial roadway which has four travel lanes and dividing median (in the Six Points Area) and an A- 1 section (four travel lanes and continuous center left turn lane) for the remaining portion to conform to the A-1 Arterial designation on the current UTMP. Other street improvements include sidewalks, ADA ramps, curb and gutters, bus stop rehabilitation and pavement markings and bike lanes. Future bikeway requirements will require evaluation at the time of roadway design and shall conform to the adopted Bikeway Plan of the UTMP/ICSP (Urban Transportation Map Plan/Integrated Community Sustainability Plan)." Project Scope: The South Alameda project includes full -depth reconstruction of the existing 4 -lane street from Ayers to Louisiana. Improvements include concrete bus stop, curb & gutter, sidewalks, ADA ramps, cycle tracks and pavement markings. Utility improvements include storm water, wastewater, water and gas (by City crews). The project includes a reduced roadway section of 3 -lanes for approximately five blocks from Cole Street to Louisiana Avenue. The remaining blocks near the 6 -points intersection from Ayers to just past Clifford will remain 4 -lane road configuration with on -street parking, raised median center and lighting. The reduced 3 -lane roadway configuration is recommended due to traffic counts and to accommodate bike facilities. The 3 -lane configuration was presented at a public meeting and at TAC (Transportation and Advisory Commission) in November 2015. The configuration was approved by TAC and received overwhelming support from the public. This project was developed with 2 base bids and bid on February 8, 2017. The City received proposals from three (3) bidders and the bids are as follows: Contractor Base Bid 1 CONCRETE Base Bid 2 ASPHALT CPC Interests, LLC dba Clark Pipeline Services Corpus Christi, Texas No Bid $4,996,832.79 Haas -Anderson Construction, Ltd. Corpus Christi, Texas $7,334,976.20 $6,510,183.50 Berry Contracting, LP dba Bay, Ltd. Corpus Christi, Texas $6,309,446.50 $5,780,534.45 Engineer's Opinion of Probable Cost $5,567,063.51 $5,107,949.81 ALTERNATIVES: 1. Authorize execution of a construction contract. (Recommended) 2. Do not authorize execution of a construction contract. (Not Recommended) OTHER CONSIDERATIONS: HDR Engineering, Inc. is the design engineer that was selected for this project under RFQ 2012-03. CONFORMITY TO CITY POLICY: Complies with statutory requirements for construction contracts. Conforms to FY 2016-2017 Street Capital Improvement Planning (CIP) Budget. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Street Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year 2016-2017 Project to Date Budget and Expenditures Current Year Future Years TOTALS Budget $681,400.00 $5,818,381.00 $6,499,781.00 Encumbered / Expended Amount 681,400.00 0.00 681,400.00 This item 4,996,832.79 4,996,832.79 Future Anticipated Expenditures This Project 814,095.28 814,095.28 BALANCE $0 $7,452.93 $7,452.93 Fund(s): Comments: N/A RECOMMENDATION: City staff and HDR Engineering, Inc. recommend the construction contract be awarded to CPC Interests, LLC dba Clark Pipeline Services in the amount of $4,996,832.79 for South Alameda Street from Ayers Street to Louisiana Avenue for Base Bid 2. (Bond 2012 Proposition 1) LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Form 1295 Letter of Recommendation Informal Staff Report 2-2-17 PROJECT BUDGET ESTIMATE South Alameda Street Ayers to Louisiana BOND 2012 Proposition 1 PROJECT FUNDS AVAILABLE: Street BOND 2012 Proposition 1 3,048,500 Storm Water CIP 1,630,000 Wastewater CIP 892,981 Water CIP 839,300 Gas CIP 89,000 TOTAL FUNDS AVAILABLE 6,499,781 FUNDS REQUIRED: Construction Fees: Construction (Clark Pipeline) THIS ITEM 4,996,833 Streets 2,065,453 Utilities 2,931,379 Storm Water 1,382,024 Water 772,677 Wastewater 775,030 Gas 1,649 Contingency (10%) 499,683 Construction Inspection and Testing Fees' 212,981 Construction Inspection 165,710 Construction Phase - Materials Testing Services 47,271 Design and Geotechnical Fees 601,057 Engineering Design (HDR) Original and Amendment No. 1 588,557 Streets 303,310 Utilities 285,247 Storm Water 163,303 Water 40,807 Wastewater 70,808 Gas 10,329 Geo Technical Testing 12,500 Reimbursement Fees and Miscellaneous' 181,774 Contract Administration (Eng. Svcs Admin/Finance/Capital Budget) 60,258 Engineering Services (Project Mgt/Constr Mgt) 120,516 Misc. (Printing, Advertising, etc.) 1,000 TOTAL 6,492,328 ESTIMATED PROJECT BUDGET BALANCE 7,453 54 26A 22 I Phle LetlIMIAeN .5113 IH -37 Texas Slate Aq uarium IJ Jur Corpus Christi N PROJECT LOCATION 0-.94a rr LOCATION MAP NOT TO SCALE ucd Oce 0/24 Ward isiani Project Number: E12091 South Alameda Street Ayers St to Louisiana Ave Bond 2012 Prop 1 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES February 27, 2017 10018654 Mr. J. H. Edmonds, P.E. Director of Engineering Services City of Corpus Christi PO Box 9277 Corpus Christi, Texas 78469-9277 Reference: S. ALAMEDA STREET FROM AYERS STREET TO LOUISIANA BOND 2012, PROJECT NO. E12091 Dear Mr. Edmonds: HDR Engineering has reviewed and tabulated the bids for the referenced project. There were three bidders for the project; Clark Pipeline Services, Haas -Anderson Construction, Ltd, and Bay Ltd. Clark Pipeline Services was the apparent low bidder, with the following bids: • Base Bid 1 (Rigid Pavement) = NO BID • Base Bid 2 (Flexible Pavement) = $4,996,832.79 As stated above, Clark Pipeline Services did not submit a bid for Base Bid 1, which was not a requirement to bid on the subject project, and the low bid was for Flexible HMAC Pavement. CPC Interests, LLC Dba Clark Pipeline Services personnel have the requisite experience and performed similar type work on previous City contracts. They are familiar with the processes and procedures of this contract. HDR recommends that the contract be awarded to CPC Interests, LLC Dba Clark Pipeline Services, for Base Bid 2 — Flexible HMAC Pavement, in the total amount of $4,996,832.79 provided that funds are available. If you have any questions, please contact our office (361) 696-3300. Sincerely, HDR Engineering, Inc. hdrinc.com Anthony Oavlik, P.E. Project Manager CC: Chris Hale, P.E. Jerry Shoemaker, P.E. Attachments: 1. Contractor Submittal — CPC Interests, LLC Dba Clark Pipeline Services 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401-0849 (361) 696-3300 CERTIFICATE OF INTERESTED PARTIES Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. CPC Interests LLC dba Clark Pipeline Services Corpus Christi, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi FORM 1295 1 of 1 OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-171282 Date Filed: 02/24/2017 Date Acknowledged: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. E12091 SOUTH ALAMEDA STREET FROM AYERS STREET TO LOUISIANA AVENUE BOND 2012 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. 6 AFFIDAVIT DIANNA M SANCHEZ Notary Public, Slate of Texas My Commission Expires SEPTEMBER 29, 2019 AFFIX NOTARY STAMP / SEAL ABOVE I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. at ire of authorized agent of contrac i busines entity Sworn to and subscribed before me, by the said to r 1 s /ie ( t- t r iL , this the 7 20 i 17 to certify which, witness my hand and seal of office. Ila. 4/10/by l� i lI Yi Iia COO l-rr z ,rift Signature of officer administe g oath Printed name of officer administering oath day of.�J �li�Li bank_ o1ili[. ,e Title of officer administering oath =Dims provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 INFORMAL STAFF REPORT MEMORANDUM To: Margie C. Rose, City Manager Thru: Mark Van Vleck, P.E., Assistant City ManagerOa Valerie H. Gray, P.E., Executive Director Public Works From: Jeff Edmonds, P.E., Director of Engineering Services Date: February 2, 2017 Subject: CITY COUNCIL ACTION REQUEST (CCAR) — January 31, 2017 BIDDING STREET BOND PROJECTS WITH BOTH PORTLAND CEMENT CONCRETE (PCC) AND HOT -MIX -ASPHALT -CONCRETE (HMAC) ISSUE: During the January 31, 2017 City Council meeting, Mayor Pro Tempore Vaughn requested Staff to provide an informal report explaining past council directives relative to the selection of PCC or HMAC for street reconstruction projects. BACKGROUND & FINDINGS: BOND 2012 PROJECTS: In late 2014, there was recognition that the majority of the Bond 2012 projects were under budgeted. Various strategies were considered to address the funding shortfall. A council resolution (see ATTACHMENT 1) was approved on February 17, 2015 that provided specific guidance on project deferrals, bicycle accommodation and pavement design. The pavement design guidance indicated that certain Bond 2012 projects were to be bid HMAC, others PCC and most were to be bid both HMAC and PCC. BOND 2014 PROJECTS: In April 2013 Council approved a Bond 2014 Execution Strategy that involved funding and initiating the project design efforts in advance of the Bond referendum. In July 2013, Council approved a Reimbursement Resolution to fund design efforts and directed staff to begin procuring design services for the streets listed on Proposition One of the Council -approved project list. Those design contracts were approved by City Council in early 2014. Consultants were directed to take the design effort to an Engineering Letter Report (ELR) level (see ATTACHMENT 2) in order to provide a better budget basis for the Bond referendum. Included in the scope of work for the Bond 2014 ELR's was a pavement lifecycle cost analysis and recommendation. Determining the required pavement section is primarily based the Association of State Highway Transportation ©fcials (AASHTO) Guide for Design of Pavement Structures. The inputs include anticipated vehicle loads, the structural properties of the subbase soil, the desired reliability level and the desired service life. For the lifecycle cost analysis, equivalent pavement sections are developed for both HMAC and PCC using a 30 -year service life. The lifecycle analysis is conducted for a minimum of 30 years considering the cost for initial construction, anticpated maintenance and major repairs at the end of the design life. In some cases, there are other factors that may drive a recommendation for HMAC or PCC such as underground utilities, driveway access requirements and compatibility with existing adjacent pavement. After the Bond 2014 referendum passed in November 2014, the design engineers were released to complete the designs for the Proposition One projects. The original guidance in late 2014 was to base the roadway design on the ELR pavement recommendation for each of the projects. That guidance has not been modified. Amendments have been negotiated on many of the Bond 2014 projects. Those amemdments; however, only addressed the Bicycle Mobility Plan recommendations and Value Engineering on drainage systems. Staff is unaware of any formal council direction to negotiate contract amendments to redesign Bond 2014 projects for both PCC and HMAC pavement structures. RESIDENTIAL RECONSTRUCTION: On December 13, 2016 Council passed a Motion of Direction (see ATTACHMENT 3) that the residential reconstruction pilot projects should be designed as both HMAC and PCC pavement structures. That direction was clarified during the December 20, 2016 meeting to indicate that both designs were to be applied for full reconstruction projects and not situations where the existing pavement can be rehabilitated (see ATTACHMENT 4). SEPTEMBER 22, 2015 COUNCIL MEETING: During the January 13th 2017 City Council Retreat, the question was raised about a discussion that took place during the September 22, 2015 City Council meeting. There was a discussion of pavement design during the item awarding the construction contract for the Bond 2012 Proposition 1 Project - Williams Drive Phase 3 (see ATTACHMENT 5). During the discussion, a question was asked whether projects would continue to be bid both ways. There was perhaps a misunderstanding regarding the staff response to this question. Some council members may have considered this as a motion of direction to design all future projects with both HMAC and PCC pavement. The staff response was intended to mean that many of the future projects on both the 2012 and 2014 Bond Programs were being designed to bid both ways. Staff did not consider this discussion as formal direction to pursue design amendments for all Bond 2014 projects that were not scoped at that time to bid with both HMAC and PCC pavement. NEXT STEPS: Staff will continue with the designs of the Bond 2012 projects in accordance with the February 2015 resolution. Additionally, staff has reviewed the Bond 2014 ELR recommendations and determined which projects could be designed with both PCC and HMAC without significantly impacting the schedule. Staff is proposing to include three projects (current ELR's recommended HMAC) that will be re - scoped and designed to include a PCC and HMAC pavement structure. This will involve negotiation of staff -approvable contract amendments. The attached table (see ATTACHMENT 6) shows the currently proposed and recommended pavement structure for the Bond 2014 projects. FEBRUARY 17, 2015 CITY COUNCIL RESOLUTION ATTACHMENT 1 Resolution directing staff to proceed with bidding remaining Bond 2012 Protects; and providing direction on specific projects. WHEREAS, at the regular council meetings of January 27, 2015 and February 17, 2015, staff presented the City Council with information related to the Bond 2012 program; WHEREAS, Council has considered general items applicable to all projects as well as items that apply to individual projects; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. To the extent that the funds authorized under the Bond 2012 Proposition 1 are insufficient to cover total project costs, the City will issue Certificates of Obligation (COs) to provide additional funding. SECTION 2. The following Bond 2012 projects are directly affected by the new Harbor Bridge construction and will be deferred and reassessed at a later date: the Twigg Street Project, from Shoreline Boulevard to Lower Broadway Street; and the Leopard Street Project, from Crosstown Expressway to Palm Drive. SECTION 3. The following streets recommended to be constructed with Hot Mix Asphalt Concrete (HMAC) will be bid for both HMAC and Concrete unless underlying structural conditions warrant otherwise: South Alameda Street, from Ayers Street to Louisiana Avenue; South Staples Street, from Brawner Parkway to Kostoryz Road; Staples Street from 1-37 to Morgan Avenue; Kostoryz Road Project, from Brawner Parkway to Staples Street, and Williams Drive, from South Staples Street to Airline Road. SECTION 4. The following projects are to be designed and constructed without designated bike lanes: Kostoryz Road Project, from Brawner Parkway to Staples Street; Greenwood Drive Project, from Gollihar Road to Home Road, and Tuloso Road Project (wide shoulders only), from 111-37 to Leopard Street. SECTION 5. In connection with the following project, staff will plan a future hike and bike trail project along Airport Ditch through H.P. Garcia Park with access to Greenwood at Home Road and Gollihar Road: the Greenwood Drive Project, from Gollihar Road fa Home Road. SECTION 6. The following project is to be designed and constructed to improve pedestrian/ADA crossings at both Kostoryz Road and Texan Trail to replace the 030482 Page 1 o13 INDEXED existing crosswalk to Ray High School: the South Staples Street Project, from Brawner Parkway to Kostoryz Road. SECTION 7. Exhibit "A" (attached and incorporated herein), describes more fully the design and construction directives for certain projects. SECTION 8. Staff Is directed to proceed with the Bond 2012 Program. ATTEST: P.Ick,ex. Rebecca Huerta City Secretary H C OF CORPUS CHRISTI Nelda Martinez Mayor Page 2 of 3 EXHIBIT A BOND 2012 Streets: 1 Discussion and Notes: • • Twigg Leopard Remain on Deferral. • Morgan (Staples to Crosstown) • • Include in active project list (additional funding may be required). Continue coordination with Hospital including monthly meetings are held with hospital and development. • • • Alameda Staples (1-37 to Morgan) Williams • Bid with both Concrete and HMAC. • Kostoryz • Bid with both Concrete and HMAC; • No Bike Lane; • Evaluate bicycle connectivity to Del Mar and nearby schools during final design. • Staples (Kostoryz to Brawner Pkwy) • • Bid with both Concrete and HMAC Existing crosswalk to Ray High School removed with improved pedestrian/ADA crossings at both Kostoryz and Texan Trail. This was coordinated with Ray HS, Police, Traffic Engineer, and RTA to improve safety for parents, children and general public. • Tuloso • Constructed as concrete with wide shoulders to accommodate bikes. • Ocean Drive • Constructed as HMAC; HMAC recommended to avoid potential joint failures (separation, raised & depressed panels, cracking, etc.) assodated with poor subgrade materials (dredged fill). • Greenwood • No Bike Lane; plan future project for hike & bike along Airport Ditch through H.P. Garcia Park with access to Greenwood at Horne and Gallihar. • Holly • Proposed median approximately 70% Xeriscape plantings and 30% grass is under review for additional Hardscape, project is a 80/20 shared cost with TxDOT (80%). Page 3 of 3 Corpus Christi, Texas U' of , 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 Aky SEPTEMBER 12, 2014 SAMPLE ENGINEERING LETTER REPORT (ELR) EXCERPT ATTACHMENT 2 FINAL ENGINEERING LETTER REPORT GOLLIHAR ROAD IMPROVEMENTS Kostoryz Road to Weber Road (Bond 2014) CITY PROJECT NO(s) E13088 & E13089 SUBMITTED TO: CITY OF CORPUS CHRISTI, TEXAS CAPITAL PROGRAMS Corpus Chr sti Capital Programs SUBMITTED BY: raRVE, Inc. engineering — surveying TBPE Firm Reg. No. F-2037 September 12, 2014 Table of Contents ExecutiveSummary ................... I. Introduction Z 11. Street Improvements ? A. TRAFFIC STUDY & SIGNAL IMPROVEMENTS 3 B. PAVEMENT IMPROVEMENTS 4 C. DRIVEWAYS, SIDEWALKS AND CURB RAMP IMPROVEMENTS 4 D. RTA (BUS) IMPROVEMENTS 5 E. STRIPING AND SIGNAGE IMPROVEMENTS 5 III. Drainage Improvements 5 A. EXISTING CONDITIONS AND PROJECT OBJECTIVES 5 B. STRUCTURAL ANALYSIS OF THE EXISTING BOX CULVERTS 6 C. STORM SEWERIMPROVEMENTS ........................... 7 IV. Water Improvements 9 V. Wastewater Improvements 9 VI. Dry Utility Improvements l0 VII. Traffic Control 1 1 VIII. Opinion of Probable Cost l 2 IX. Summary & Engineer Recommendations 13 APPENDICES Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Appendix 1 Appendix J Appendix K Appendix L Appendix M Appendix N — Existing Conditions Map — Proposed Street & Utility improvements — Private Improvements in Right -of -Way — Traffic Study Merno — Geotechnical Report — 30 -Year Pavement Life Cycle Cost Analysis — Drainage Report & Supplement — Culvert Evaluation Report — Local Area Drainage Map — Ultimate Offsite Drainage Improvements — Existing Storm Trunk Line Profile — Proposed Storm "Trunk Line Profile — Existing 14" HP Gas Line Profile — Opinion of Probable Cost Gollihar Road Improvements — Kostoryz Road to Weber Road Final Engineering Letter Report Executive Summary On March 18, 2014 the City of Corpus Christi City Council executed a contract for engineering services with RVE, Inc. ("RVE") for Gollihar Road Improvements — Kostoryz Road to Weber Road (City Project No(s) E13088 & E13089) — the "Project". On March 20, 2014, RVE received a Notice to Proceed on the Project from the City Engineer. The Project includes the complete reconstruction of Gollihar Road from Kostoryz Road to Weber Road, approximately 5,300 feet in length. The objectives of the Project are to replace the existing deteriorated hot -mix asphalt concrete (1-HMAC) road, sidewalks and curb ramps with new infrastructure, provide bike lanes inside the curbs on both sides of the roadway, increase the capacity of the existing underground storm sewer system and upgrade the existing water and wastewater infrastructure. The Project will he funded by two (2) 2014 Bond Projects: Golliltar Road from Kostoryz Road to Carroll Lane (City Project No. E13089) and Gollihar Road from Carroll Lane to Weber Road (City Project No. E13088). The Project will be bid, however, as one project. Per the City's Urban Transportation Plan, Gollihar Road from Kostoryz Road to Weber Road is classified as an Al Arterial Street, which is to contain five (5) lanes in a 95' right-of- way. The existing road contains five (5) lanes - two (2) travel lanes in each direction and a center. continuous left -turn lane — in an 80' right-of-way. The Project does not include right-of-way acquisition to create a 95' right-of-way. The 5 -lane configuration will be maintained with the Project, however, in order to provide bike lanes within the curb on both sides of the road within the existing 80' right-of-way, the lane widths will be reduced. Two (2) 10.5' wide travel lanes will be provided in both directions with an II" wide continuous left -turn lane down the middle. Two (2) 4' wide bike lanes will be created on both sides of the new road adjacent to the curb. Tied, 5' wide concrete sidewalks will be provided on both sides of the new road. The total width of surface improvements is 75' with minor variances along the Project length, which allows a 2' to 3' separation between the back of proposed sidewalk and the 80' right-of-way. RVE recommends a new pavement section composed of HMAC based upon facts presented in this report. The local underground storm sewer collection system (laterals and curb inlets) will be replaced with new infrastructure with a 25 -year storm capacity. Additional large box culverts will be installed adjacent to the existing storm trunk line (box culverts) beneath Gollihar Road to increase the existing capacity to a 25 -year frequency rain event in accordance with the City's Drainage Criteria Manual. All non -PVC water laterals and all VCP wastewater mains and laterals will be replaced with new infrastructure. All wastewater manholes will be replaced or rehabilitated with fiberglass manholes or liners. The Project will be funded through a combination of street funds (2014 Bond) and C.I.P. utility funds. The City's estimated construction budget is $16.3 million. The preliminary Opinion of Probable Cost of the Project is $13.8 million: $4.3 million for street improvements and $9.5 million for utility improvements. Gollihar Road Improvements -- Kostoryz Road to Weber Road Final Engineering tetter Report Page 1 with the 60% Submittal Package. PAVEMENT IMPROVEMENTS On May 7, 2014, Rock Engineering and Testing, Inc. ("ROCK") prepared a geotechnical report containing information on the existing soils and pavement recommendations. ROCK performed eleven (11) pavement/soil borings in the field. Six (6) of the borings were taken to a depth of 20', and five (5) were taken to a depth of 5'. ROCK's report is attached in Appendix E. RVE: analyzed two (2) 30 -year pavement sections listed below: - Hot -mix, asphalt concrete (HMAC) section: and - Reinforced concrete section. We performed a 30 -year Life Cycle Cost Analysis (LCCA) on the two (2) options to determine the more economical section. Based upon the existing soil conditions on the Project, ROCK recommended the following 30 -year pavement sections: HMAC Pavement 2.0" Type `D' HMAC over 3.0" Type 'B' HMAC over 9" Type 'A', Grade 1 Limestone Base over TX -5 Geogrid (or equal) Reinforced Concrete Pavement 8" Jointed, Reinforced Concrete over 1" Type 'D' HMAC over 6" Type 'A', Grade I Limestone Base Typically, subgrade soils in the Corpus Christi area are found to be highly expansive with a Plasticity Index between 30 and 40. In those soil conditions, RVE recommends lime -stabilization of the subgrade under new pavement. The average Plasticity Index of the subgrade soils encountered on this Project, however, is 20. As such, lime -stabilization of the subgrade is not recommended on the Project. RVE. used the Federal Highway Administration's (FHWA) RealCost V2.5 program to perform a 30 -year LCCA on the two (2) pavement section options -- attached in Appendix F. The results of the analysis indicate that the Reinforced Concrete Pavement section is the more economical section after 30 years when both City Costs and User Costs are considered. The analysis results for each pavement option are listed below. The number in RED represents the lesser cost for each category. Pavement Section I-IMAC Pavement Reinf. Concrete Pavement Initial Construction Cost $2.82 Million $4.00 Million 30 -Yr. Present Value Cost (w/o User Costs) $3.72 Million $4.30 Million 30 -Yr. Present Value Cast (wl User Costs) $5.75 Million $6.00 Million Based upon the cost comparison presented above, RVE recommends that the City use the HMAC pavement option for the new road surface. Gollihar Road Improvements - Kostoryz Road to Weber Road Final Engineering tetter Report Page 4 DECEMBER 13, 2016 CITY COUNCIL MEETING MINUTES ATTACHMENT 3 City Council Meeting Minutes December 13, 2016 Council Member Garza made a motion to approve the ordinance, seconded by Council Member McComb. This Ordinance was passed on second reading as amended and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Hunter, Council Member Rubio, Council Member Vaughn, Council Member Guajardo, Council Member McComb. Council Member Smith and Mayor McQueen Absent: 1 - Council Member Molina Abstained: 0 Enactment No: 031011 17, Second Reading Ordinance - Appropriating funds and approving Engineering Design Contracts for Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive Ordinance appropriating 52,500,000 from the Unreserved Fund Balance in No. 1042 Residential and Local Street Fund for the Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive; amending the FY 2017 Operating Budget adopted by Ordinance No. 030965; authorizing the City Manager, or designee, to execute a contract for engineering design services with Urban Engineering of Corpus Christi, Texas in the amount of $88,420 for design of Ralston Avenue and Freese & Nichols, Inc. of Corpus Christi, Texas in the amount of 597,764 for the design of Rogerson Drive. Mayor McQueen referred to item 17. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to appropriate $2.5 million from the Residential and Local Street Fund for the Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive and to execute two design contracts, one with Urban Engineering for the design of Ralston Avenue from Staples Street to Alameda, and one with Freese and Nichols for the design of Rogerson Drive from McArdle to Sunnybrook. Staff will use these two projects to provide better pricing information and data to further develop the program. Projects are planned to go out for bid in the May/June 2017 timeframe with construction projected for July 2017. Council members spoke regarding the following topics; the use of internal staff or consultants to monitor the program; Ralston Avenue and Rogerson Drive being two good candidates for the program; bidding both asphalt and concrete; what ether cities are doing on residential streets; the reason the engineering fees are different for the two projects; a future discussion of the use of concrete when developing new neighborhoods; the budgeted amount for residential and local streets; the initial intent of staff to design both streets using asphalt; the pothole repairs on both streets; public notification for residents regarding construction on the streets; a lifecycle cost analysis for concrete and asphalt; the current cost for concrete; whether the funding will Include curb and gutter; the cost matrix used to determine the difference In cost between pothole repair and reconstruction; options for cost-plus contracts; the percentage that these test projects are of all residential streets Corpus Christi Page 12 Printed on 12128/2016 City Council Meeting Minutes December 13, 2016 that require repairs; the opportunity to manufacture our own materials; creation of a council committee for residential streets; financing for residential streets; and the test projects providing better pricing information and data. Mayor McQueen called for comments from the public. Abel Alonzo, 1701 Thames, spoke in support of the use of concrete for residential streets. Sir Frederick von USA King VII, 1442 Arlington Drive, spoke in support of the use of asphalt. MOTION OF DIRECTION Council Member Vaughn made a motion directing the City Manager to bid the projects in both concrete and asphalt, seconded by Council Member Guajardo. This Motion of Direction was passed with the following vote: McQueen, Garza, Hunter, Guajardo, McComb, Molina, Rubio, and Vaughn, voting "Aye", Smith voting "No". Council Member Garza made a motion to approve the ordinance, seconded by Council Member Rubio. This Ordinance was passed on second reading and approved with the following vote: Aye: 9 - Council Member Garza, Council Member Hunter, Council Member Rubio, Council Member Vaughn, Council Member Guajardo, Council Member McComb, Council Member Smith, Mayor McQueen and Council Member Molina Abstained: 0 Enactment No: 031013 18. Second Reading Ordinance - Continuing Texas Municipal Retirement System (TMRS) Updated Service Credits for Current Participants and Increases for Prior and Current Annuities Ordinance authorizing and allowing, under the Act governing the Texas Municipal Retirement System, "Updated Service Credits" in said system for service performed by qualifying members of such system who presently are members of the City of Corpus Christi; providing for increased prior and current service annuities for retirees and beneficiaries of deceased retirees of the City; establishing an effective date for such actions; and providing for severance. Mayor McQueen referred to Item 18. Interim Director of Human Resources Steven Viera stated that the purpose of this item is to continue the Texas Municipal Retirement System (TMRS) updated service credits for current participants and increases for current and prior annuities. These provisions adhere to the terms of the collective bargaining agreement with the Corpus Christi Police Officers' Association. Mr. Viera explained that unlike most public retirement systems, TMRS is a hybrid design instead of a defined benefit plan based on the percentage of salaries such as the City of Dallas. The TMRS plan is cash balanced in nature, meaning it is based on the contributions made by the employee, the matching amount by the City and interest income credited to the employee's account over the employee's career. Mr. Viera provided Corpus Christi Page 13 Printed on 1 2/2 812 01 6 December 20, 2016 CITY COUNCIL MEETING MINUTES ATTACHMENT 4 City Council Meeting Minutes December 20, 2016 MOTION TO RECONSIDER Council Member McComb made a motion to reconsider the motion of direction for Item No. 17 on the December 13, 2016 agenda, seconded by Council Member Vaughn. This motion to reconsider was passed and approved with the following vote: McQueen, Guajardo, Hunter, McComb, Molina, Smith, Vaughn, and Garza, voting' .Aye"; Rubio voting "No` MOTION OF DIRECTION Council Member McComb made a motion directing the City Manager to bid reconstruction projects in both concrete and asphalt, not repair projects, seconded by Council Member Smith and passed unanimously. J. CONSENT AGENDA: (ITEMS 3 - 26) 3. 4. Approval of the Consent Agenda Mayor McQueen referred to the Consent Agenda. Council members requested that items 8, 12, 13, 15, 16, 17, 18 be pulled for individual consideration. City Manager Rose requested that Item 26 be pulled for individual consideration. A motion was made by Council Member Garza, seconded by Council Member Smith, to approve the Consent Agenda. The consent agenda items were passed and approved by one vote as follows: Aye: 9 - Mayor McQueen, Council Member Garza, Council Member Guajardo, Council Member Hunter. Council Member McComb. Council Member Molina, Council Member Rubio. Council Member Smith and Council Member Vaughn Abstained: 0 Appointing Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation Motion appointing Council Members Dan McQueen, Michael T. Hunter, Joe McComb, Paulette Guajardo, Carolyn Vaughn, Ben Molina, Lucy Rubio, Greg Smith, and Rudy Garza as Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation. This Motion was passed on the Consent Agenda. Enactment No: M2016-162 Appointing Board Members to the Coastal Bend Health Facilities Development Corporation and the Coastal Bend Cultural Education Facilities Finance Corporation Motion appointing Council Members Dan McQueen, Michael T. Hunter, Joe McComb, Paulette Guajardo, Carolyn Vaughn, Ben Molina, Lucy Rubio, Greg Smith, and Rudy Garza as Board Members to the Coastal Bend Health Facilities Development Corporation and Corpus Christi Page 4 Printed on 1117120}7 SEPTEMBER 22, 2015 CITY COUNCIL MEETING MINUTES ATTACHMENT 5 City Council Meeting Minutes September 22, 2015 18. First Reading Ordinance - Construction Contract and Construction Materials Testing Contract for Williams Drive Phase 3 from Staples Street to Airline Road (Bond 2012) Ordinance appropriating anticipated revenues; authorizing the City Manager or designee to execute a construction contract with Reytec Construction Resources, Inc. of Houston, Texas in the amount of $8,698,783.50 for the Base Bid; and to execute a construction materials testing contract with Tolunay-Wong Engineers, Inc. of Corpus Christi, Texas in the amount of $112,135 for Williams Drive Phase 3 from Staples Street to Airline Road (BOND 2012). Mayor Pro Tem Vaughn referred to Item 18. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to execute a construction contract with Reytec Construction Resources, Inc. and a construction materials testing contract with Tolunay-Wong Engineers, Inc. for Bond 2012 Street Project, Williams Drive Phase 3 from Staples Street to Airline Road. This project is a joint project with the City of Corpus Christi and the Texas Department of Transportation (TxDOT), which includes: the widening of Williams Drive and the replacement of the existing two-lane asphalt road with a new four -lane concrete road; new 10 -foot wide, combined pedestrian/bicycle paths on both side of the street; the replacement of six RTA pads; and utility improvements. The project is estimated to be completed by February 2017. There were no comments from the public. Council members spoke regarding the following topics: bidding the project with asphalt and concrete (Additive Alternate Nos. 1 and 2); Indication that other projects are being bid with concrete as the lowest bids; and Additive Alternate No. 2 including wastewater lines. Council Member Garza made a motion to approve the ordinance, seconded by Council Member McIntyre. This Ordinance was passed on first reading and approved with the following vote: Aye: 6 - Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Rubio, Council Member Scott and Council Member Vaughn Absent: 3 - Mayor Martinez, Council Member Riojas and Council Member Rosas Abstained: 0 19. First Reading Ordinance - Appropriating capital proceeds accrued from June 1, 2014 through July 31, 2015 in their respective Capital Improvement Program Funds Ordinance appropriating amounts of (a) $13,184.50; (b) $290,604.57 (c) $484,822.06; (d) $47,395.11; and (e) $192,120.28 into the Airport CIP, Bond Proceed, Utility Revenue Bond, Specialty Bond Proceeds and other Unappropriated Funds, respectively, for the following purposes: City's match for future FAA Grant Projects, Bayfront, Public Facilities, Fire, Police, Public Health and Safety, Sanitary Landfill, Corpus Christi Page 12 Printed on 9/29/2015 BOND 2014 CURRENT AND PROPOSED PAVEMENT RECOMMENDATION ATTACHMENT 6 Street Bond Projects - Pavement Recommendations PROJECT NUMBER PROJECT TITLE Bond STATUS Current Design Proposed Design 113099 Waldron Rd (Airdame Dr to Caribbean Or) Bond 2014 Prop 1 Complete HMAC HMAC E13100 Santa Fe 5t (Elizabeth 5t to Hancock 5t) Bond 2014 Prop 1 Complete HMAC HMAC 113095 Southern Minerals Rd (tip River Rd to iH-37) Bond 2014 Prop 1 Construction PCC PCC E13086 Alameda 5t (Kinney 5t to ligan St) Bond 2014 Prop 1 Construction HMAC HMAC E1S111 North Padre Island Beach Access Road 3A Bond 2014 Prop 2 Construction PCC PCC E13088(E13089 Gollihar Rd (Weber Rd. to Carroll In.) Fiord 2014 Prop 1 Council Award HMAC HMAC 5130137 Galli har Rd (South Staples to Weber Rd) Bond 2014 Prop 1 Council Award HMAC HMAC 015109 Ennis loslin Road Extension (Hotly to Williams) Bond 2014 Prop 7 Cnnec1 Award HMAC HMAC 013092 Ayers St (Alameda 5t to Ocean Dr) Bond 2014 Prop 1 Bidding HMAC HMAC E13096 Yorktown Blvd (Everhart Rd to Staples St) Bond 2014 Prop 1 Pending Bid Both Both (13097 Carroll Lane{Houston St to MCArdie Rd) Bond 2014 Prop 1 Pending Bid HMAC HMAC €13091 Carona Dr (Flynn Pkwy to Everhart Rd) Bond 2014 Prop 1 Pending Bid HMAC HMAC €15122 Creek View Drive Extension Bond 2014 Prop 2 Final HMAC HMAC E15111 North Padre Island Beath Access Road 2 Bond 2014 Prop 2 Pre-FVnal PCC PCC 513099 Old Robstown Rd (Highway 44 to Leopard St) Bond 2014 Prop 1. Pre -Final HMAC HMAC €13093 Yorktown Blvd (Lake Travis to Everhart Rd) Bond 2014 Prop 1 Pre -Final HMAC HMAC 015106 Ayers St- Pedestrian improvements and Turn Lane Bond 2014 Prop 2 75% HMAC HMAC 113094 Staples St (Alameda 5t to Morgan 5t) Bond 2014 Prop 1 60% Both Both (15107 Chaparral Street - Phase 2 (Schatael to Taylor) Bond 2014 Prop 2 30% HMAC Both 115110 Flato Road - Agnes to Bates Bond 2014 Prop 30% HMAC Both E15112 Rodd Field Road Expansion (Saratoga to Yorktown) Bond 2014 Prop 2 30% HMAC Both 133090 Morgan Ave (Staples St to Ocean Dr) Bond 2014 Prop 1 On Ho)4 Both Both PCC HMAC Both Advertised or in Construction Corpus Chr sti Engineering South Alameda Street Ayers Street to Louisiana Avenue BOND 2012, Proposition 1 Council Presentation March 21, 2017 Project Location �hrsti Engineering hristi tonal ,rt 7 I26AI 26 1H-37 Corpus Christi SOUTH ALAMEDA STREET 188 Oc e0/201. Ward Island Project Vicinity 4000 Corpus Chr sti Engineering 14-LANES1 CA° c TRANSITION AREA 1' SOUTH ALAMEDA STREET 13-LANES1 4 So. Alameda Cross Sections 0 �hrsti Engineering i YIIIW= MUMr AYERS TO CLIFFORD 0 ms.*VA i\9a>ViVav"ivAl ivies a'pirkaat..i..VVA ....'p.miii ] nIvima:mnvameav o ' MMS40: SIDEWALK PARALLEL PARKING TRAVEL LANES CONCRETE MEDIAN TRAVEL LANES ANGLE PARKING SIDEWALK 4 So. Alameda Cross Sections 0 �hrsti Engineering COLE TO LOUISIANA F' T CENTER CYCLE N11111111 TURN TRACK - LANE SIDEWALK BUFFER TRAVEL LANE CYCLE TRACK TRAVEL LANE SIDEWALK BUFFER So. Alameda Cross Sections 111 �hrsti Engineering HOT MIX ASPHALT CONCRETE (HMAC) 5.5" HMAC 9" LIMESTONE BASE 12" COMPACTED SUBGRADE PRIME COAT GEOGRID 6 Project Scope �hrsti Engineering The full depth reconstruction of South Alameda from Ayers to Louisiana includes: 4 -lanes with on -street parking, center raised median and lighting near the 6 -points intersection from Ayers to just past Clifford Reduced roadway section to 3 -lanes for approx. 5-1/2 blocks beginning just before Cole and ending at Louisiana New curb & gutter, ADA curb -ramps, sidewalks, cycle tracks and pavement markings Storm water, wastewater, water and gas (gas by City crews) Project Schedule �hrsti Engineering 2017 2018 Bid/ Award F I ' I=F Construction Construction Estimate: 480 days 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: March 28, 2017 Legistar Number: 17-0320 Agenda Item: Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC Dba Clark Pipeline Services of Corpus Christi, Texas in the amount of $4,996,832.79 for South Alameda Street from Ayers Street to Louisiana Avenue for Base Bid 2. (BOND 2012 Proposition 1) Amount Required: $4,996,832.79 Fund Name Accounting Unit Account No. Activity No. Amount Street CIP Bond 2014 3549-051 550910 E12091 -01 -3552 -EXP 2,065,453.44 Water 2013 Bd 12 4094-051 550910 E12091 -01 -4094 -EXP 179,087.20 Water 2015 Bd 4097-051 550910 E12091 -01 -4097 -EXP 565,000.00 Water 2017 Bond 4099-041 550910 E12091 -01 -4099 -EXP 28,589.50 Wastewater 2017 Bond 4257-042 550910 E12091 -01 -4257 -EXP 359,885.47 WW 2015 Rev Bd 4255-042 550910 E12091 -01 -4255 -EXP 320,000.00 WW 2013 Bd 12 4253-042 550910 E12091 -01 -4253 -EXP 95,144.61 Storm Water 2013 Bd 12 3498-043 550910 E12091 -01 -3498 -EXP 1,288,845.69 Storm Water 2012A Bd 12 3496-043 550910 E12091 -01 -3496 -EXP 93,178.08 Gas 2013 Bond 12 4558-022 550910 E12091 -01 -4558 -EXP 1,648.80 Total 4,996,832.79 ❑ Certification Not Required Director of Financial Services Date: AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 1, 2017 TO: Margie C. Rose, City Manager THRU: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3897 Valerie H. Gray, P. E., Executive Director of Public Works valerieg@cctexas.com (361) 826-3729 FROM: Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 CAPTION: Construction Contract Ayers Street from Ocean Drive to Alameda Street Bond 2014 Proposition 1 Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC Dba Clark Pipeline Services of Corpus Christi, Texas in the amount of $6,254,181.88 for Ayers Street from Ocean Drive to Alameda Street for a total Base Bid plus Additive Alternates 1 and 3. (Bond 2014 Proposition 1) PURPOSE: The purpose of this Agenda Item is to obtain authority to execute a construction contract for the Ayers Street from Ocean Drive to Alameda Street Project. BACKGROUND AND FINDINGS: Bond 2014 Brochure description: "Ayers Street from Ocean Drive to Alameda Street — This project includes full -depth repair and implements the Road Diet concept by narrowing the existing four lanes undivided arterial roadway to a three lane undivided arterial roadway with continuous center turn lane and bike lanes as prescribed by the Mobility CC Plan. Other street improvements include curb and gutter, sidewalks, ADA curb ramps, lane striping and pavement markings and traffic signal improvements at the 3rd Street and Santa Fe intersections." Project Scope: This project provides for reconstructing the existing 4 -lane roadway as a new 3 -lane roadway with two travel lanes and center turn lane. Improvements include new curb & gutter, sidewalks, ADA ramps, pavement markings and street lighting. Utility improvements include water, wastewater, storm water and minor gas line adjustments (by City crews). The project also implements reconfiguration of the Booty/Santa Fe/Ayers intersection and incorporates shared bicycle/vehicle lanes from Santa Fe to Ocean Drive. The reconfiguration to 3 -lanes, was coordinated with MPO (Metropolitan Planning Organization), RTA (Reginal Transportation Authority) and other key stakeholders to discuss and evaluate safety and traffic impacts for all modes of transportation. The reconfiguration of the Booty/Santa Fe/Ayers intersection was approved by City Council on February 28, 2017. The design contracts for the Bond 2014 Proposition 1 projects were executed in early 2014 and required the designers to provide a life cycle cost analysis and pavement recommendation with their preliminary design reports. The design engineer for the Ayers project determined that HMAC was the most cost effective pavement material. This project was, therefore, designed and bid with an HMAC pavement section. The project was developed with a base bid and three additive alternatives. • Additive Alternate No. 1: Rehabilitation of existing 21" wastewater line with CIPP • Additive Alternate No. 2: Rehabilitation of existing 21" wastewater line with Pipe Bursting and construction of new wastewater manhole • Additive Alternate No. 3: Rehabilitation of existing 12" wastewater lines with Pipe Bursting, open cut reconstruction of existing 21" wastewater line and construction of manholes Additive Alternates No. 1 and No. 2 are similar in scope and cannot be awarded together; therefore, the city is recommending Alternates No. 1 and 3 only. This project bid on February 15, 2017, the City received proposals from two (2) bidders and the bids are as follows: Contractor Base Bid Plus Additive Alternates 1 and 3 CPC Interests, LLC dba Clark Pipeline Services Corpus Christi, Texas $6,254,181.88 Berry Contracting, LLC dba Bay, Ltd. Corpus Christi, Texas $6,588,375.40 Engineer's Opinion of Probable Cost $6,640,000.00 Project coordination is planned to minimize impacts to motorists and businesses with multiple simultaneous construction projects on Ayers, Ocean Drive, South Alameda and Staples (Alameda to Morgan). ALTERNATIVES: 1. Authorize execution of a construction contract. (Recommended) 2. Do not authorize execution of a construction contract. (Not Recommended) OTHER CONSIDERATIONS: Freese and Nichols, Inc. is the design engineer that was selected for this project under RFQ 2013-01. CONFORMITY TO CITY POLICY: Complies with statutory requirements for construction contracts. Conforms to FY 2016-2017 Street Capital Improvement Planning (CIP) Budget. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Street Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year 2016-2017 Project to Date Budget and Expenditures Current Year Future Years TOTALS Budget $1,000,100 $7,247,900.00 $8,248,000.00 Encumbered / Expended Amount 1,000,100 0.00 1,000,100.00 This item 6,254,181.88 $6,254,181.88 Future Anticipated Expenditures This Project 946,763.18 946,763.18 BALANCE $0 $46,954.94 $46,954.94 Fund(s): Street and Utility CIP Comments: N/A RECOMMENDATION: City staff and Freese and Nichols, Inc. recommend the construction contract be awarded to CPC Interests, LLC dba Clark Pipeline Services in the amount of $6,254,181.88 for the total Base Bid Plus Additive Alternates 1 and 3. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Form 1295 Letter of Recommendation Informal Staff Report 2-2-17 PROJECT BUDGET ESTIMATE Ayers Street Ocean Drive to Alameda Street BOND 2014 Proposition 1 PROJECT FUNDS AVAILABLE: Street BOND 2014 Proposition 1 $ 3,900,000 Storm Water CIP 2,200,000 Wastewater CIP 1,110,000 Water CIP 1,028,000 Gas CIP 10,000 TOTAL FUNDS AVAILABLE $ 8,248,000 FUNDS REQUIRED: Construction Fees: Construction (Clark Pipeline) THIS ITEM $ 6,254,182 Streets 2,936,105 Utilities 3,318,077 Storm Water 1,695,921 Water 778,689 Wastewater 834,755 Gas 8,712 Contingency (10%) 625,418 Construction Inspection and Testing Fees 233,559 Construction Inspection (LAN, Inc) 178,400 Construction Materials Testing 55,159 Design Fees 941,811 Engineering Design (Freese and Nichols) Original and Amendment No. 1 891,925 Streets 552,996 Utilities 338,930 Storm Water 163,385 Water 78,425 Wastewater 97,120 Gas Six Points Intersection Improvements - Engineering Study 49,886 Reimbursement Fees 146,075 Contract Administration (Eng. Svcs Admin/Finance/Capital Budget) 62,175 Engineering Services (Project Mgt) 82,900 Misc. (Printing, Advertising, etc.) 1,000 TOTAL $ 8,201,045 ESTIMATED PROJECT BUDGET BALANCE $ 46,955 _- - H1-37 504, PAII1 UollvEla +l Texas State Aquarium) to I. �co 0 0 Sp/0 Corpus Christi PROJECT LOCATION 0„i tP LOCATION MAP NOT TO SCALE Project Number: E13092 Ayers Street S Alameda St to Ocean Dr Bond 2014 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Ayers Street Alameda Street to Ocean Drive BOND 2014, Proposition 1 Corpus Chr sti Engineering Council Presentation March 21, 2017 Project Location �hrsti Engineering HI -37 Sp70 Corpus Christi AYERS STREET co co 0 "9ci� Or cow d eff d Project Vicinity �hrsti Engineering Cr) Booty St Ayers Street Cross Sections 111 �hrsti Engineering BUFFER SIDEWALK TRAVEL LANE CENTER TURN LANE TRAVEL LANE BUFFER SIDEWALK Ayers Street Cross Sections 111 �hrsti Engineering HOT MIX ASPHALT CONCRETE (HMAC) 5" HMAC 10" LIMESTONE BASE 12" COMPACTED SUBGRADE PRIME COAT GEOGRID Project Scope �hrsti Engineering Reconfiguration and reconstruction of the existing 4 -lane road to 3 -lanes includes: • New HMAC 3 -lane roadway with two travel lanes with a continuous center turn lane • ADA curb -ramps, sidewalks and pavement markings • Water, wastewater, storm water and minor gas line adjustments (by City crews) • Shared lanes for bicycles and automobiles from Santa Fe to Ocean Project Schedule �hrsti Engineering 2017 2018 F M A Bid/ Award M J J A S 0 N D J F M A Construction Construction Estimate: 390 days FREESE aNICHOLS Innovative approaches Practical results Outstanding service 800 N. Shoreline Blvd., Suite 1600N • Corpus Christi, Texas 78401 • 361-561-6500 • fax 361-561-6501 February 22, 2017 Jeff Edmonds, P.E. Director of Engineering Services City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469 Re: Ayers Street — Ocean Drive to Alameda Street (Bond 2014) City Project No. E13092 Mr. Edmonds: www.freese.com The City of Corpus Christi received two (2) sealed bid proposals for the above referenced project on February 15, 2017 at 2:00 p.m. at the City Secretary's office. Attached is a tabulation of the two (2) bid proposals. The project bid included only Hot Mix Asphalt Concrete (HMAC) as the recommended pavement for this project. Both bid proposals were properly executed and submitted in compliance with the bidding requirements for this project. We performed an analysis of the bids and found two mathematical errors in the bid proposal submitted by Clark Pipeline Services. These errors, however, did not affect the outcome of the ranking. No other errors or irregularities were noted on the proposal forms. The bid breakdown for both bidders is shown on the attached Tabulation of Bids, and the Base Bids are summarized below: Bidder Total Base Bid - HMAC Clark Pipeline Services $5,717,705.94 Bay, Ltd. $5,948,791.60 A total of three (3) Additive Alternates are included in this project for the reconstruction of existing wastewater manholes and wastewater mains ranging in size from 15" to 24". These Additive Alternates are as described as follows: 1. Rehabilitation of existing 21" wastewater line with CIPP 2. Rehabilitation of existing 21" wastewater line with Pipe Bursting and construction of new wastewater manhole 3. Rehabilitation of existing 12" wastewater lines with Pipe Bursting, open cut reconstruction of existing 21" wastewater line, and construction of manholes The bid breakout of these 3 additive alternates for each of the two bidders is as follows: Additive Alternate Clark Pipeline Services Bay, Ltd. No. 1 $71,438.40 $119,299.00 No. 2 $242,018.00 $223,647.50 No. 3 $465,037.54 $520,284.80 Total Additive Alternates $778,493.94 $863,231.30 February 22, 2017 Page 2 of 2 Additive Alternates No. 1 and 2 include a similar scope of work for rehabilitating the same wastewater line utilizing two different construction methods. Therefore, these alternates cannot both be awarded together. Based on review of the bids received for these alternates, it is recommended that the City only award Additive Alternates No. 1 and 3 and omit Additive Alternate No. 2. Total Base Bid plus Additive Alternates No. 1 and 3 $6,254,181.88 $6,588,375.40 Clark Pipeline Services is the apparent low bidder for this project based on Total Base Bid. Clark Pipeline Services is also the apparent low bidder for this project based on Total Base Bid plus Additive Alternates No. 1 and 3. Based on the City's evaluation criteria for this project, Clark Pipeline Services is the lowest qualified Bidder, and their Total Amount Bid is within the construction budget. Therefore, FNI recommends that the City award the construction contract for Ayers Street — Ocean Drive to Alameda Street (City Project No. E13092) to Clark Pipeline Services of Corpus Christi, Texas in the amount of $6,254,181.88 for the scope of work including: Base Bid + Additive Alternate No. 1 + Additive Alternate No. 3 If you have any questions regarding this matter, please feel free to contact us. Sincerely, FREESE AND NICHOLS, INC. Nick Cecava, P.E., CFM Attachment: Tabulation of Bids CERTIFICATE OF INTERESTED PARTIES Complete Nos. 1 - 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. CPC Interests LLC dba Clark Pipeline Services Corpus Christi, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 3 Provide the identification number used by the governmental entity or state agency to track or identify description of the services, goods, or other property to be provided under the contract. E13092 AYERS STREET FROM OCEAN DRIVE TO ALAMEDA STREET BOND 2014 FORM 1295 1 of 1 OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-171284 Date Filed: 02/24/2017 Date Acknowledged: the contract, and provide a 4 Name of interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. 6 AFFIDAVIT IJ DIANNA M SANCHEZ Notary Public, State of Texas My Commission Expires SEPTEMBER 29, 2019 I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. Signature of authorized agent of contracting AFFIX NOTARY STAMP / SEAL ABOVE Sworn to and subscribed before me, by the said h ri S 119/1 E? ( i /) anz- 20 ) /7 , to certify which, witness my hand and seal of office. Our fi ,fid 10,7-2 Signature of officer administering o nth Sanchr� , this the isiness entity day of ?ebnary Bin r Printed name of officer administering oath Title of officer administering oath Forms provided by Texas Ethics Commission www.etnics.state.tx,us Version V1.0.277 INFORMAL STAFF REPORT MEMORANDUM To: Margie C. Rose, City Manager Thru: Mark Van Vleck, P.E., Assistant City ManagerOa Valerie H. Gray, P.E., Executive Director Public Works From: Jeff Edmonds, P.E., Director of Engineering Services Date: February 2, 2017 Subject: CITY COUNCIL ACTION REQUEST (CCAR) — January 31, 2017 BIDDING STREET BOND PROJECTS WITH BOTH PORTLAND CEMENT CONCRETE (PCC) AND HOT -MIX -ASPHALT -CONCRETE (HMAC) ISSUE: During the January 31, 2017 City Council meeting, Mayor Pro Tempore Vaughn requested Staff to provide an informal report explaining past council directives relative to the selection of PCC or HMAC for street reconstruction projects. BACKGROUND & FINDINGS: BOND 2012 PROJECTS: In late 2014, there was recognition that the majority of the Bond 2012 projects were under budgeted. Various strategies were considered to address the funding shortfall. A council resolution (see ATTACHMENT 1) was approved on February 17, 2015 that provided specific guidance on project deferrals, bicycle accommodation and pavement design. The pavement design guidance indicated that certain Bond 2012 projects were to be bid HMAC, others PCC and most were to be bid both HMAC and PCC. BOND 2014 PROJECTS: In April 2013 Council approved a Bond 2014 Execution Strategy that involved funding and initiating the project design efforts in advance of the Bond referendum. In July 2013, Council approved a Reimbursement Resolution to fund design efforts and directed staff to begin procuring design services for the streets listed on Proposition One of the Council -approved project list. Those design contracts were approved by City Council in early 2014. Consultants were directed to take the design effort to an Engineering Letter Report (ELR) level (see ATTACHMENT 2) in order to provide a better budget basis for the Bond referendum. Included in the scope of work for the Bond 2014 ELR's was a pavement lifecycle cost analysis and recommendation. Determining the required pavement section is primarily based the Association of State Highway Transportation ©fcials (AASHTO) Guide for Design of Pavement Structures. The inputs include anticipated vehicle loads, the structural properties of the subbase soil, the desired reliability level and the desired service life. For the lifecycle cost analysis, equivalent pavement sections are developed for both HMAC and PCC using a 30 -year service life. The lifecycle analysis is conducted for a minimum of 30 years considering the cost for initial construction, anticpated maintenance and major repairs at the end of the design life. In some cases, there are other factors that may drive a recommendation for HMAC or PCC such as underground utilities, driveway access requirements and compatibility with existing adjacent pavement. After the Bond 2014 referendum passed in November 2014, the design engineers were released to complete the designs for the Proposition One projects. The original guidance in late 2014 was to base the roadway design on the ELR pavement recommendation for each of the projects. That guidance has not been modified. Amendments have been negotiated on many of the Bond 2014 projects. Those amemdments; however, only addressed the Bicycle Mobility Plan recommendations and Value Engineering on drainage systems. Staff is unaware of any formal council direction to negotiate contract amendments to redesign Bond 2014 projects for both PCC and HMAC pavement structures. RESIDENTIAL RECONSTRUCTION: On December 13, 2016 Council passed a Motion of Direction (see ATTACHMENT 3) that the residential reconstruction pilot projects should be designed as both HMAC and PCC pavement structures. That direction was clarified during the December 20, 2016 meeting to indicate that both designs were to be applied for full reconstruction projects and not situations where the existing pavement can be rehabilitated (see ATTACHMENT 4). SEPTEMBER 22, 2015 COUNCIL MEETING: During the January 13th 2017 City Council Retreat, the question was raised about a discussion that took place during the September 22, 2015 City Council meeting. There was a discussion of pavement design during the item awarding the construction contract for the Bond 2012 Proposition 1 Project - Williams Drive Phase 3 (see ATTACHMENT 5). During the discussion, a question was asked whether projects would continue to be bid both ways. There was perhaps a misunderstanding regarding the staff response to this question. Some council members may have considered this as a motion of direction to design all future projects with both HMAC and PCC pavement. The staff response was intended to mean that many of the future projects on both the 2012 and 2014 Bond Programs were being designed to bid both ways. Staff did not consider this discussion as formal direction to pursue design amendments for all Bond 2014 projects that were not scoped at that time to bid with both HMAC and PCC pavement. NEXT STEPS: Staff will continue with the designs of the Bond 2012 projects in accordance with the February 2015 resolution. Additionally, staff has reviewed the Bond 2014 ELR recommendations and determined which projects could be designed with both PCC and HMAC without significantly impacting the schedule. Staff is proposing to include three projects (current ELR's recommended HMAC) that will be re - scoped and designed to include a PCC and HMAC pavement structure. This will involve negotiation of staff -approvable contract amendments. The attached table (see ATTACHMENT 6) shows the currently proposed and recommended pavement structure for the Bond 2014 projects. FEBRUARY 17, 2015 CITY COUNCIL RESOLUTION ATTACHMENT 1 Resolution directing staff to proceed with bidding remaining Bond 2012 Protects; and providing direction on specific projects. WHEREAS, at the regular council meetings of January 27, 2015 and February 17, 2015, staff presented the City Council with information related to the Bond 2012 program; WHEREAS, Council has considered general items applicable to all projects as well as items that apply to individual projects; BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. To the extent that the funds authorized under the Bond 2012 Proposition 1 are insufficient to cover total project costs, the City will issue Certificates of Obligation (COs) to provide additional funding. SECTION 2. The following Bond 2012 projects are directly affected by the new Harbor Bridge construction and will be deferred and reassessed at a later date: the Twigg Street Project, from Shoreline Boulevard to Lower Broadway Street; and the Leopard Street Project, from Crosstown Expressway to Palm Drive. SECTION 3. The following streets recommended to be constructed with Hot Mix Asphalt Concrete (HMAC) will be bid for both HMAC and Concrete unless underlying structural conditions warrant otherwise: South Alameda Street, from Ayers Street to Louisiana Avenue; South Staples Street, from Brawner Parkway to Kostoryz Road; Staples Street from 1-37 to Morgan Avenue; Kostoryz Road Project, from Brawner Parkway to Staples Street, and Williams Drive, from South Staples Street to Airline Road. SECTION 4. The following projects are to be designed and constructed without designated bike lanes: Kostoryz Road Project, from Brawner Parkway to Staples Street; Greenwood Drive Project, from Gollihar Road to Home Road, and Tuloso Road Project (wide shoulders only), from 111-37 to Leopard Street. SECTION 5. In connection with the following project, staff will plan a future hike and bike trail project along Airport Ditch through H.P. Garcia Park with access to Greenwood at Home Road and Gollihar Road: the Greenwood Drive Project, from Gollihar Road fa Home Road. SECTION 6. The following project is to be designed and constructed to improve pedestrian/ADA crossings at both Kostoryz Road and Texan Trail to replace the 030482 Page 1 o13 INDEXED existing crosswalk to Ray High School: the South Staples Street Project, from Brawner Parkway to Kostoryz Road. SECTION 7. Exhibit "A" (attached and incorporated herein), describes more fully the design and construction directives for certain projects. SECTION 8. Staff Is directed to proceed with the Bond 2012 Program. ATTEST: P.Ick,ex. Rebecca Huerta City Secretary H C OF CORPUS CHRISTI Nelda Martinez Mayor Page 2 of 3 EXHIBIT A BOND 2012 Streets: 1 Discussion and Notes: • • Twigg Leopard Remain on Deferral. • Morgan (Staples to Crosstown) • • Include in active project list (additional funding may be required). Continue coordination with Hospital including monthly meetings are held with hospital and development. • • • Alameda Staples (1-37 to Morgan) Williams • Bid with both Concrete and HMAC. • Kostoryz • Bid with both Concrete and HMAC; • No Bike Lane; • Evaluate bicycle connectivity to Del Mar and nearby schools during final design. • Staples (Kostoryz to Brawner Pkwy) • • Bid with both Concrete and HMAC Existing crosswalk to Ray High School removed with improved pedestrian/ADA crossings at both Kostoryz and Texan Trail. This was coordinated with Ray HS, Police, Traffic Engineer, and RTA to improve safety for parents, children and general public. • Tuloso • Constructed as concrete with wide shoulders to accommodate bikes. • Ocean Drive • Constructed as HMAC; HMAC recommended to avoid potential joint failures (separation, raised & depressed panels, cracking, etc.) assodated with poor subgrade materials (dredged fill). • Greenwood • No Bike Lane; plan future project for hike & bike along Airport Ditch through H.P. Garcia Park with access to Greenwood at Horne and Gallihar. • Holly • Proposed median approximately 70% Xeriscape plantings and 30% grass is under review for additional Hardscape, project is a 80/20 shared cost with TxDOT (80%). Page 3 of 3 Corpus Christi, Texas U' of , 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 Aky SEPTEMBER 12, 2014 SAMPLE ENGINEERING LETTER REPORT (ELR) EXCERPT ATTACHMENT 2 FINAL ENGINEERING LETTER REPORT GOLLIHAR ROAD IMPROVEMENTS Kostoryz Road to Weber Road (Bond 2014) CITY PROJECT NO(s) E13088 & E13089 SUBMITTED TO: CITY OF CORPUS CHRISTI, TEXAS CAPITAL PROGRAMS Corpus Chr sti Capital Programs SUBMITTED BY: raRVE, Inc. engineering — surveying TBPE Firm Reg. No. F-2037 September 12, 2014 Table of Contents ExecutiveSummary ................... I. Introduction Z 11. Street Improvements ? A. TRAFFIC STUDY & SIGNAL IMPROVEMENTS 3 B. PAVEMENT IMPROVEMENTS 4 C. DRIVEWAYS, SIDEWALKS AND CURB RAMP IMPROVEMENTS 4 D. RTA (BUS) IMPROVEMENTS 5 E. STRIPING AND SIGNAGE IMPROVEMENTS 5 III. Drainage Improvements 5 A. EXISTING CONDITIONS AND PROJECT OBJECTIVES 5 B. STRUCTURAL ANALYSIS OF THE EXISTING BOX CULVERTS 6 C. STORM SEWERIMPROVEMENTS ........................... 7 IV. Water Improvements 9 V. Wastewater Improvements 9 VI. Dry Utility Improvements l0 VII. Traffic Control 1 1 VIII. Opinion of Probable Cost l 2 IX. Summary & Engineer Recommendations 13 APPENDICES Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G Appendix H Appendix 1 Appendix J Appendix K Appendix L Appendix M Appendix N — Existing Conditions Map — Proposed Street & Utility improvements — Private Improvements in Right -of -Way — Traffic Study Merno — Geotechnical Report — 30 -Year Pavement Life Cycle Cost Analysis — Drainage Report & Supplement — Culvert Evaluation Report — Local Area Drainage Map — Ultimate Offsite Drainage Improvements — Existing Storm Trunk Line Profile — Proposed Storm "Trunk Line Profile — Existing 14" HP Gas Line Profile — Opinion of Probable Cost Gollihar Road Improvements — Kostoryz Road to Weber Road Final Engineering Letter Report Executive Summary On March 18, 2014 the City of Corpus Christi City Council executed a contract for engineering services with RVE, Inc. ("RVE") for Gollihar Road Improvements — Kostoryz Road to Weber Road (City Project No(s) E13088 & E13089) — the "Project". On March 20, 2014, RVE received a Notice to Proceed on the Project from the City Engineer. The Project includes the complete reconstruction of Gollihar Road from Kostoryz Road to Weber Road, approximately 5,300 feet in length. The objectives of the Project are to replace the existing deteriorated hot -mix asphalt concrete (1-HMAC) road, sidewalks and curb ramps with new infrastructure, provide bike lanes inside the curbs on both sides of the roadway, increase the capacity of the existing underground storm sewer system and upgrade the existing water and wastewater infrastructure. The Project will he funded by two (2) 2014 Bond Projects: Golliltar Road from Kostoryz Road to Carroll Lane (City Project No. E13089) and Gollihar Road from Carroll Lane to Weber Road (City Project No. E13088). The Project will be bid, however, as one project. Per the City's Urban Transportation Plan, Gollihar Road from Kostoryz Road to Weber Road is classified as an Al Arterial Street, which is to contain five (5) lanes in a 95' right-of- way. The existing road contains five (5) lanes - two (2) travel lanes in each direction and a center. continuous left -turn lane — in an 80' right-of-way. The Project does not include right-of-way acquisition to create a 95' right-of-way. The 5 -lane configuration will be maintained with the Project, however, in order to provide bike lanes within the curb on both sides of the road within the existing 80' right-of-way, the lane widths will be reduced. Two (2) 10.5' wide travel lanes will be provided in both directions with an II" wide continuous left -turn lane down the middle. Two (2) 4' wide bike lanes will be created on both sides of the new road adjacent to the curb. Tied, 5' wide concrete sidewalks will be provided on both sides of the new road. The total width of surface improvements is 75' with minor variances along the Project length, which allows a 2' to 3' separation between the back of proposed sidewalk and the 80' right-of-way. RVE recommends a new pavement section composed of HMAC based upon facts presented in this report. The local underground storm sewer collection system (laterals and curb inlets) will be replaced with new infrastructure with a 25 -year storm capacity. Additional large box culverts will be installed adjacent to the existing storm trunk line (box culverts) beneath Gollihar Road to increase the existing capacity to a 25 -year frequency rain event in accordance with the City's Drainage Criteria Manual. All non -PVC water laterals and all VCP wastewater mains and laterals will be replaced with new infrastructure. All wastewater manholes will be replaced or rehabilitated with fiberglass manholes or liners. The Project will be funded through a combination of street funds (2014 Bond) and C.I.P. utility funds. The City's estimated construction budget is $16.3 million. The preliminary Opinion of Probable Cost of the Project is $13.8 million: $4.3 million for street improvements and $9.5 million for utility improvements. Gollihar Road Improvements -- Kostoryz Road to Weber Road Final Engineering tetter Report Page 1 with the 60% Submittal Package. PAVEMENT IMPROVEMENTS On May 7, 2014, Rock Engineering and Testing, Inc. ("ROCK") prepared a geotechnical report containing information on the existing soils and pavement recommendations. ROCK performed eleven (11) pavement/soil borings in the field. Six (6) of the borings were taken to a depth of 20', and five (5) were taken to a depth of 5'. ROCK's report is attached in Appendix E. RVE: analyzed two (2) 30 -year pavement sections listed below: - Hot -mix, asphalt concrete (HMAC) section: and - Reinforced concrete section. We performed a 30 -year Life Cycle Cost Analysis (LCCA) on the two (2) options to determine the more economical section. Based upon the existing soil conditions on the Project, ROCK recommended the following 30 -year pavement sections: HMAC Pavement 2.0" Type `D' HMAC over 3.0" Type 'B' HMAC over 9" Type 'A', Grade 1 Limestone Base over TX -5 Geogrid (or equal) Reinforced Concrete Pavement 8" Jointed, Reinforced Concrete over 1" Type 'D' HMAC over 6" Type 'A', Grade I Limestone Base Typically, subgrade soils in the Corpus Christi area are found to be highly expansive with a Plasticity Index between 30 and 40. In those soil conditions, RVE recommends lime -stabilization of the subgrade under new pavement. The average Plasticity Index of the subgrade soils encountered on this Project, however, is 20. As such, lime -stabilization of the subgrade is not recommended on the Project. RVE. used the Federal Highway Administration's (FHWA) RealCost V2.5 program to perform a 30 -year LCCA on the two (2) pavement section options -- attached in Appendix F. The results of the analysis indicate that the Reinforced Concrete Pavement section is the more economical section after 30 years when both City Costs and User Costs are considered. The analysis results for each pavement option are listed below. The number in RED represents the lesser cost for each category. Pavement Section I-IMAC Pavement Reinf. Concrete Pavement Initial Construction Cost $2.82 Million $4.00 Million 30 -Yr. Present Value Cost (w/o User Costs) $3.72 Million $4.30 Million 30 -Yr. Present Value Cast (wl User Costs) $5.75 Million $6.00 Million Based upon the cost comparison presented above, RVE recommends that the City use the HMAC pavement option for the new road surface. Gollihar Road Improvements - Kostoryz Road to Weber Road Final Engineering tetter Report Page 4 DECEMBER 13, 2016 CITY COUNCIL MEETING MINUTES ATTACHMENT 3 City Council Meeting Minutes December 13, 2016 Council Member Garza made a motion to approve the ordinance, seconded by Council Member McComb. This Ordinance was passed on second reading as amended and approved with the following vote: Aye: 8 - Council Member Garza, Council Member Hunter, Council Member Rubio, Council Member Vaughn, Council Member Guajardo, Council Member McComb. Council Member Smith and Mayor McQueen Absent: 1 - Council Member Molina Abstained: 0 Enactment No: 031011 17, Second Reading Ordinance - Appropriating funds and approving Engineering Design Contracts for Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive Ordinance appropriating 52,500,000 from the Unreserved Fund Balance in No. 1042 Residential and Local Street Fund for the Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive; amending the FY 2017 Operating Budget adopted by Ordinance No. 030965; authorizing the City Manager, or designee, to execute a contract for engineering design services with Urban Engineering of Corpus Christi, Texas in the amount of $88,420 for design of Ralston Avenue and Freese & Nichols, Inc. of Corpus Christi, Texas in the amount of 597,764 for the design of Rogerson Drive. Mayor McQueen referred to item 17. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to appropriate $2.5 million from the Residential and Local Street Fund for the Residential Reconstruction Test Projects - Ralston Avenue and Rogerson Drive and to execute two design contracts, one with Urban Engineering for the design of Ralston Avenue from Staples Street to Alameda, and one with Freese and Nichols for the design of Rogerson Drive from McArdle to Sunnybrook. Staff will use these two projects to provide better pricing information and data to further develop the program. Projects are planned to go out for bid in the May/June 2017 timeframe with construction projected for July 2017. Council members spoke regarding the following topics; the use of internal staff or consultants to monitor the program; Ralston Avenue and Rogerson Drive being two good candidates for the program; bidding both asphalt and concrete; what ether cities are doing on residential streets; the reason the engineering fees are different for the two projects; a future discussion of the use of concrete when developing new neighborhoods; the budgeted amount for residential and local streets; the initial intent of staff to design both streets using asphalt; the pothole repairs on both streets; public notification for residents regarding construction on the streets; a lifecycle cost analysis for concrete and asphalt; the current cost for concrete; whether the funding will Include curb and gutter; the cost matrix used to determine the difference In cost between pothole repair and reconstruction; options for cost-plus contracts; the percentage that these test projects are of all residential streets Corpus Christi Page 12 Printed on 12128/2016 City Council Meeting Minutes December 13, 2016 that require repairs; the opportunity to manufacture our own materials; creation of a council committee for residential streets; financing for residential streets; and the test projects providing better pricing information and data. Mayor McQueen called for comments from the public. Abel Alonzo, 1701 Thames, spoke in support of the use of concrete for residential streets. Sir Frederick von USA King VII, 1442 Arlington Drive, spoke in support of the use of asphalt. MOTION OF DIRECTION Council Member Vaughn made a motion directing the City Manager to bid the projects in both concrete and asphalt, seconded by Council Member Guajardo. This Motion of Direction was passed with the following vote: McQueen, Garza, Hunter, Guajardo, McComb, Molina, Rubio, and Vaughn, voting "Aye", Smith voting "No". Council Member Garza made a motion to approve the ordinance, seconded by Council Member Rubio. This Ordinance was passed on second reading and approved with the following vote: Aye: 9 - Council Member Garza, Council Member Hunter, Council Member Rubio, Council Member Vaughn, Council Member Guajardo, Council Member McComb, Council Member Smith, Mayor McQueen and Council Member Molina Abstained: 0 Enactment No: 031013 18. Second Reading Ordinance - Continuing Texas Municipal Retirement System (TMRS) Updated Service Credits for Current Participants and Increases for Prior and Current Annuities Ordinance authorizing and allowing, under the Act governing the Texas Municipal Retirement System, "Updated Service Credits" in said system for service performed by qualifying members of such system who presently are members of the City of Corpus Christi; providing for increased prior and current service annuities for retirees and beneficiaries of deceased retirees of the City; establishing an effective date for such actions; and providing for severance. Mayor McQueen referred to Item 18. Interim Director of Human Resources Steven Viera stated that the purpose of this item is to continue the Texas Municipal Retirement System (TMRS) updated service credits for current participants and increases for current and prior annuities. These provisions adhere to the terms of the collective bargaining agreement with the Corpus Christi Police Officers' Association. Mr. Viera explained that unlike most public retirement systems, TMRS is a hybrid design instead of a defined benefit plan based on the percentage of salaries such as the City of Dallas. The TMRS plan is cash balanced in nature, meaning it is based on the contributions made by the employee, the matching amount by the City and interest income credited to the employee's account over the employee's career. Mr. Viera provided Corpus Christi Page 13 Printed on 1 2/2 812 01 6 December 20, 2016 CITY COUNCIL MEETING MINUTES ATTACHMENT 4 City Council Meeting Minutes December 20, 2016 MOTION TO RECONSIDER Council Member McComb made a motion to reconsider the motion of direction for Item No. 17 on the December 13, 2016 agenda, seconded by Council Member Vaughn. This motion to reconsider was passed and approved with the following vote: McQueen, Guajardo, Hunter, McComb, Molina, Smith, Vaughn, and Garza, voting' .Aye"; Rubio voting "No` MOTION OF DIRECTION Council Member McComb made a motion directing the City Manager to bid reconstruction projects in both concrete and asphalt, not repair projects, seconded by Council Member Smith and passed unanimously. J. CONSENT AGENDA: (ITEMS 3 - 26) 3. 4. Approval of the Consent Agenda Mayor McQueen referred to the Consent Agenda. Council members requested that items 8, 12, 13, 15, 16, 17, 18 be pulled for individual consideration. City Manager Rose requested that Item 26 be pulled for individual consideration. A motion was made by Council Member Garza, seconded by Council Member Smith, to approve the Consent Agenda. The consent agenda items were passed and approved by one vote as follows: Aye: 9 - Mayor McQueen, Council Member Garza, Council Member Guajardo, Council Member Hunter. Council Member McComb. Council Member Molina, Council Member Rubio. Council Member Smith and Council Member Vaughn Abstained: 0 Appointing Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation Motion appointing Council Members Dan McQueen, Michael T. Hunter, Joe McComb, Paulette Guajardo, Carolyn Vaughn, Ben Molina, Lucy Rubio, Greg Smith, and Rudy Garza as Board Members to the Corpus Christi Housing Finance Corporation and the Corpus Christi Industrial Development Corporation. This Motion was passed on the Consent Agenda. Enactment No: M2016-162 Appointing Board Members to the Coastal Bend Health Facilities Development Corporation and the Coastal Bend Cultural Education Facilities Finance Corporation Motion appointing Council Members Dan McQueen, Michael T. Hunter, Joe McComb, Paulette Guajardo, Carolyn Vaughn, Ben Molina, Lucy Rubio, Greg Smith, and Rudy Garza as Board Members to the Coastal Bend Health Facilities Development Corporation and Corpus Christi Page 4 Printed on 1117120}7 SEPTEMBER 22, 2015 CITY COUNCIL MEETING MINUTES ATTACHMENT 5 City Council Meeting Minutes September 22, 2015 18. First Reading Ordinance - Construction Contract and Construction Materials Testing Contract for Williams Drive Phase 3 from Staples Street to Airline Road (Bond 2012) Ordinance appropriating anticipated revenues; authorizing the City Manager or designee to execute a construction contract with Reytec Construction Resources, Inc. of Houston, Texas in the amount of $8,698,783.50 for the Base Bid; and to execute a construction materials testing contract with Tolunay-Wong Engineers, Inc. of Corpus Christi, Texas in the amount of $112,135 for Williams Drive Phase 3 from Staples Street to Airline Road (BOND 2012). Mayor Pro Tem Vaughn referred to Item 18. Executive Director of Public Works Valerie Gray stated that the purpose of this item is to execute a construction contract with Reytec Construction Resources, Inc. and a construction materials testing contract with Tolunay-Wong Engineers, Inc. for Bond 2012 Street Project, Williams Drive Phase 3 from Staples Street to Airline Road. This project is a joint project with the City of Corpus Christi and the Texas Department of Transportation (TxDOT), which includes: the widening of Williams Drive and the replacement of the existing two-lane asphalt road with a new four -lane concrete road; new 10 -foot wide, combined pedestrian/bicycle paths on both side of the street; the replacement of six RTA pads; and utility improvements. The project is estimated to be completed by February 2017. There were no comments from the public. Council members spoke regarding the following topics: bidding the project with asphalt and concrete (Additive Alternate Nos. 1 and 2); Indication that other projects are being bid with concrete as the lowest bids; and Additive Alternate No. 2 including wastewater lines. Council Member Garza made a motion to approve the ordinance, seconded by Council Member McIntyre. This Ordinance was passed on first reading and approved with the following vote: Aye: 6 - Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Rubio, Council Member Scott and Council Member Vaughn Absent: 3 - Mayor Martinez, Council Member Riojas and Council Member Rosas Abstained: 0 19. First Reading Ordinance - Appropriating capital proceeds accrued from June 1, 2014 through July 31, 2015 in their respective Capital Improvement Program Funds Ordinance appropriating amounts of (a) $13,184.50; (b) $290,604.57 (c) $484,822.06; (d) $47,395.11; and (e) $192,120.28 into the Airport CIP, Bond Proceed, Utility Revenue Bond, Specialty Bond Proceeds and other Unappropriated Funds, respectively, for the following purposes: City's match for future FAA Grant Projects, Bayfront, Public Facilities, Fire, Police, Public Health and Safety, Sanitary Landfill, Corpus Christi Page 12 Printed on 9/29/2015 BOND 2014 CURRENT AND PROPOSED PAVEMENT RECOMMENDATION ATTACHMENT 6 Street Bond Projects - Pavement Recommendations PROJECT NUMBER PROJECT TITLE Bond STATUS Current Design Proposed Design 113099 Waldron Rd (Airdame Dr to Caribbean Or) Bond 2014 Prop 1 Complete HMAC HMAC E13100 Santa Fe 5t (Elizabeth 5t to Hancock 5t) Bond 2014 Prop 1 Complete HMAC HMAC 113095 Southern Minerals Rd (tip River Rd to iH-37) Bond 2014 Prop 1 Construction PCC PCC E13086 Alameda 5t (Kinney 5t to ligan St) Bond 2014 Prop 1 Construction HMAC HMAC E1S111 North Padre Island Beach Access Road 3A Bond 2014 Prop 2 Construction PCC PCC E13088(E13089 Gollihar Rd (Weber Rd. to Carroll In.) Fiord 2014 Prop 1 Council Award HMAC HMAC 5130137 Galli har Rd (South Staples to Weber Rd) Bond 2014 Prop 1 Council Award HMAC HMAC 015109 Ennis loslin Road Extension (Hotly to Williams) Bond 2014 Prop 7 Cnnec1 Award HMAC HMAC 013092 Ayers St (Alameda 5t to Ocean Dr) Bond 2014 Prop 1 Bidding HMAC HMAC E13096 Yorktown Blvd (Everhart Rd to Staples St) Bond 2014 Prop 1 Pending Bid Both Both (13097 Carroll Lane{Houston St to MCArdie Rd) Bond 2014 Prop 1 Pending Bid HMAC HMAC €13091 Carona Dr (Flynn Pkwy to Everhart Rd) Bond 2014 Prop 1 Pending Bid HMAC HMAC €15122 Creek View Drive Extension Bond 2014 Prop 2 Final HMAC HMAC E15111 North Padre Island Beath Access Road 2 Bond 2014 Prop 2 Pre-FVnal PCC PCC 513099 Old Robstown Rd (Highway 44 to Leopard St) Bond 2014 Prop 1. Pre -Final HMAC HMAC €13093 Yorktown Blvd (Lake Travis to Everhart Rd) Bond 2014 Prop 1 Pre -Final HMAC HMAC 015106 Ayers St- Pedestrian improvements and Turn Lane Bond 2014 Prop 2 75% HMAC HMAC 113094 Staples St (Alameda 5t to Morgan 5t) Bond 2014 Prop 1 60% Both Both (15107 Chaparral Street - Phase 2 (Schatael to Taylor) Bond 2014 Prop 2 30% HMAC Both 115110 Flato Road - Agnes to Bates Bond 2014 Prop 30% HMAC Both E15112 Rodd Field Road Expansion (Saratoga to Yorktown) Bond 2014 Prop 2 30% HMAC Both 133090 Morgan Ave (Staples St to Ocean Dr) Bond 2014 Prop 1 On Ho)4 Both Both PCC HMAC Both Advertised or in Construction AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 2, 2017 TO: Margie C. Rose, City Manager THRU: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3082 Valerie H. Gray, P.E., Executive Director of Public Works valerieg@cctexas.com (361) 826-3729 FROM: Dan Grimsbo, Interim Executive Director of Utilities dang@cctexas.com (361) 826-1718 Jeff H. Edmonds, P.E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Construction Contract City -Wide Water Distribution System Repair and Replacement Indefinite Delivery/Indefinite Quantity Program (Capital Improvement Program) CAPTION: Motion authorizing the City Manager, or designee, to execute a construction contract with CPC Interests, LLC dba Clark Pipeline Services, LLP of Corpus Christi, Texas in the amount of $5,100,000 for the City -Wide Water Distribution System Repair and Replacement Indefinite Delivery/Indefinite Quantity (IDIQ) Program for one (1) year base contract with two (2) optional one (1) year extensions to be approved administratively subject to availability of funding and satisfactory contractor performance. PURPOSE: The purpose of this agenda item is to obtain authority to execute a construction contract for one base year with administrative approval of the two following years subject to conditions of funding and performance. BACKGROUND AND FINDINGS: CIP Description: Programmed Water Line Service Life Extension "This project provides for a strategic lifecycle program replacement and extension of the City's water distribution system (1,368 miles). The program is flexible and provides a systemic approach to extend the service life of the system while enhancing monitoring capability and water quality. Additional benefits will include increased distribution reliability with reduced service outages, and reduced operational costs. A major priority of the lifecycle improvements will maximize CIP investments increasing capacity of the system and deferring unnecessary major upgrades to pump stations and plants. This program is also in response to the City's Street Preventative Maintenance Program (SPMP) and the construction is in a manner of IDIQ delivery orders. Some work will be completed using in-house forces to save on costs where applicable." Project Scope: To implement life cycle improvements for the aging water distribution system, the City developed the Repair and Replacement City -Wide Distribution IDIQ project. The IDIQ provides for contractor bid unit pricing for a comprehensive list of activities to develop the most cost effective solution to a variety of pipe sizes, material types and conditions. The IDIQ construction was developed as a multi-year contract with a one-year base and two optional extensions to be administratively authorized. The IDIQ program is implemented through numerous Delivery Orders (DO) for specific site(s) and scope of work. The work consists of a full spectrum of repair and replacement methodologies including open trenching, pipe bursting, horizontal direct drilling with installation of new pipes, new valves, fittings, fire hydrants, etc. and surface restoration of sidewalks, roadways, landscaping to complete the projects. On February 15, 2017, the City received proposals from four (4) bidders and the respective bids were as follows: CONTRACTOR TOTAL BASE BID CPC Interests, LLC dba Clark Pipeline Services, LLP Corpus Christi, Texas 4,876,501.78 Bridges Specialties, Inc. (NON-RESPONSIVE) Robstown, Texas 4,934,121.30 National Power Rodding Corp. Austin, Texas 8,879,139.63 IPR South Central, LLC Pasadena, Texas 9,268,064.41 Engineer's Opinion of Probable Construction Cost 5,100,000.00 City Staff deemed the bid received from Bridges Specialties, Inc. as non-responsive due to failure of the bidder to submit bid on the correct, required bid form for the project. The City analyzed the four proposals and recommended the project be awarded to CPC Interests, LLC dba Clark Pipeline Services, LLP. Based on a review of Clark Pipeline Services' experience and resources, Clark Pipeline Services, LLP is qualified to provide the construction services for the project. Based on the City's available funds, the total amount of this construction contract is $5,100,000. The construction cost of each DO will be calculated through the contractor unit bid prices. The construction contract is anticipated as a one (1) year base contract, with two (2) optional one (1) year extensions subject to availability of funding and satisfactory contractor performance. The optional contract extension(s) will be administratively authorized by the City Manager or designee based on available funding. The cost of the subsequent contracts is anticipated to be $5.1M each and will be budgeted and paid for through future capital budgets. If all three contract years are authorized, the total cost of this contract is estimated at $15.3M. ALTERNATIVES: 1. Authorize the execution of the construction contract. (Recommended) 2. Do not authorize the execution of the construction contract. (Not Recommended) OTHER CONSIDERATIONS: Urban Engineering is the design engineer selected for this project through Request for Qualifications No. 2012-03 Bond Issue 2012 and CIP Projects. CONFORMITY TO CITY POLICY: Conforms to City Fiscal Policy. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Utilities Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue ®Capital ❑ Not applicable Fiscal Year 2016-2017 Project to Date Expenditures Current Year Future Years TOTALS Line Item Budget (CIP) 7,450,000 7,450,000 Encumbered / Expended Amount 328,350 328,350 This Item (Base Year) 5,100,000 5,100,000 Future Anticipated Expenditures This Project 907,500 907,500 BALANCE 1,114,150 1,114,150 Fund(s): Water CIP #1 Comments: This project requires approximately 365 days for construction of Year 1 with anticipated completion in April 2018. The construction contract will result in the expenditure of an amount not to exceed $5,100,000. RECOMMENDATION: City Staff recommends approval of a construction contract with CPC Interests, LLC dba Clark Pipeline Services, LLP of Corpus Christi, Texas in the amount of $5,100,000 for the City -Wide Water Distribution System Repair and Replacement IDIQ Program for one (1) year base contract with two (2) optional one (1) year extensions to be approved administratively subject to availability of funding and satisfactory contractor performance. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Form 1295 Letter of Recommendation PROJECT BUDGET ESTIMATE City -Wide Collection System Replacement and Rehabilitation Indefinite Delivery/Indefinite Quantity Program FUNDS AVAILABLE: Water CIP $7,450,000 FUNDS REQUIRED: Construction 5,610,000 Construction Base Contract - Year 1 (CPC Interests, LLC dba Clark Pipeline Services, LLP) THIS CONTRACT 5,100,000 Contingency (10%) 510,000 Construction Testing Construction Materials Testing Estimate 15,000 Desicgn• *Design and Delivery Order Preparation (Urban Engineering) 328,350 15,000 328,350 Reimbursements' 382,500 Contract Administration (Engineering Svcs Admin/Capital Budget/Finance) 149,000 Engineering Services (Project Mgmt/Constr Mgmt) 223,500 Misc 10,000 TOTAL $6,335,850 ESTIMATED PROJECT BUDGET BALANCE $1,114,150 *Contract approved by City Council on June 21, 2016 by Motion No. M2016-065 Morgan Farm Area Odern tJ Sinton Rancho Chico. Del Sol -Loma Linde 181 Taft Doyle Porllend own Petronila Tradewinds Gregory. Falrliar-Couity Ac e5 Cil} Ey I h Aransas Pass Ingleside Ingleside Water Distribution System Repair and Replacement Indefinite Delivery/Indefinite Quantity Program Tierra Grande Chr.pniar Batch stang Bland LOCATION MAP NOT TO SCALE Project Number: E16294 City -Wide Water Distribution System Repair and Replacement Indefinite Delivery/Indefinite Quantity Program CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Carpus Chr sti Engineering City -Wide Water Distribution System Repair and Replacement Indefinite Delivery/ Indefinite Quantity Program Council Presentation March 21, 2017 Project Location Corpus Chr sti Engineering Doyle 1,11. Greg.r3, - Amur, ou, •ts Pron., 1,:sN Water Distribution System Repair and Replacement Indefinite Delivery/Indefinite Quantity Program Project Scope Carpus Chr sti Engineering This contract provides continued construction of the city-wide waterline IDIQ including: ✓ Installation of new waterlines by open trenching, pipe bursting, horizontal directional drilling , or boring; ✓ Installation of new fire hydrants, valves, fittings; ✓ Removal and abandonment of existing waterlines; ✓ Pavement repair and other miscellaneous items; ✓ Construction budget/award $5.1 Million per year Project Schedule Corpus Chr sti Engineering 2017 2018 M J JIAISIOINIDIJ FIMIA Engineering Services Construction Year 1 Project Construction Estimate: 12 Months Schedule reflects City Council construction award in March 2017 with completion planned by April 2018 Documents prepared as a one (1) year base contract with two (2) optional one (1) year extensions to be approved administratively subject to availability of funding and satisfactory performance. s Ethics Commission www.et i cs. state.tx. us Version V1.0.277 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-170693 Date Filed: 02/2312017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. CPC Interests LLC dba Clark Pipeline Services Corpus Christi, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. E16294 City Wide Water Distribution System Repair and Replacement 2017 IDIQ Procurement 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. „srxl, DIANNA M SANCHEZ ; ,Notary Public, State of Texas , j My Commission Expires `{ . '' SEPTEMBER 29, 2019. 4 . _. nature of authorized agent of contractin business entity AFFIX NOTARY STAMP / SEAL ABOVE �! ( I /} I Sworno^to and subscribed before me, by the said 0 -ii) ri s1ipher t --'14--r1 this the day of r(ia .2alx I'7 , to certify which, witness my hand and seal of office. r / hr2_ 84r 0 -e -Ate -e,, l an 1 11n.n Signature of officer administers g oath Printed name of officer administeringoath Title of officer administering tering oath s Ethics Commission www.et i cs. state.tx. us Version V1.0.277 tEURBAN ENGINEERING February 24, 2017 Mr. Jeff Edmonds, P.E Director of Engineering Services City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469 Job No.: 33760.66.04 TRANSMITTED VIA EMAIL Re: City Wide Water Distribution System R & R 2017 — IDIQ Procurement (E16294) Dear Jeff, We have reviewed the four (4) bids opened on February 15, 2017 for the above subject project and offer the following comments. The bids ranged from a low bid of $4,876,501.78 to a high bid of $9,268,064.41, with CPC Interests, LLC dba Clark Pipeline Services being the low bidder. Please find enclosed a copy of the Tabulation of Bids, summarizing the proposed bids from each of the four (4) bidders. I. Analysis of Engineer's Estimate and Low Bid: ENGINEER'S ESTIMATE LOW BID DIFFERENCE $5,128,761.94 $4,876,501.78 $252,260.16 (5%) In general, the main reason for the 5% difference between the engineer's estimate and the low bid is that our estimate of the unit costs was higher for the following items: • 6" to 12" Dia. DIP Waterline • 8" to 16" Dia. C900 Waterline by Auger Boring (> 100 -ft) • 6" and 8" Dia. Waterline by Pipe Bursting Front Easement (0 -ft to 500 -ft) • 4" to 16" Dia. Waterline by Pipe Bursting Rear Easement (0 -ft to 500 -ft) • 4" to 16" Dia. C905 Waterline by HDD • Gate valves up 6" to 16" • Fittings • Connections to Existing Water Main • Tapping Sleeves • Fire hydrants • Casing Pipe by Conventional Trenching • Traffic control (361)854-3101 2725 SWANTNER DRIVE CORPUS CHRISTI, TEXAS 78404 www.urbanenq.com TBPE Firm #145 TBPLS Firm #10032400 FAX (361) 854-6001 II. Bid Package: We have reviewed the information submitted by CPC Interests, LLC dba Clark Pipeline Services to satisfy Section 00 45 16 (see attached) of the Contract Documents and note the following: • Based on our conversation with Chris Clark of CPC Interests, LLC dba Clark Pipeline Services, it appears that the contractor understands the major components of the work and the products that we have specified to be used in the project. • CPC Interests, LLC dba Clark Pipeline Services has been working on the City's 2015 IDIQ program so they understand the IDIQ process and will have a crew dedicated to the 2017 program. They also understand that they are to be ready to mobilize a crew to undertake emergency work as noted in the Contract Documents. We also discussed the emergency scenario pricing summarized in the hypothetical scenario as shown in Section C of the Bid Tabulation. CPC Interests, LLC dba Clark Pipeline Services understands that the pricing in this section was only used to obtain the multiplier for emergency delivery orders that will be issued under the contract. • CPC Interests, LLC dba Clark Pipeline Services have listed the following subcontractors, Bay Limited, Tech Con, Highway Barricades, Horseshoe Construction, Bortunco, and Rangeline. These subcontractor will perform the following work for CPC Interests, LLC dba Clark Pipeline Services: o Bay Limited — This subcontractor will be responsible for paving repairs. o Tech Con — This subcontractor will be responsible for the installation of the pipe by horizontal directional drilling (HDD) methods. o Highway Barricades — Will supply traffic control devices for the project. o Horseshoe Construction — This subcontractor will be responsible for installing pipe by pipe bursting. o Bortunco — This subcontractor will be responsible for auger boring and jacking of casing and carrier pipe. o Rangeline — This subcontractor will be responsible for hot -tapping water mains. • CPC Interests, LLC dba Clark Pipeline Services will provide project management, coordination and back up services to these subcontractors. They will also be installing the proposed pipe lines and appurtenances by conventional trenching methods. We contacted several of the City of Corpus Christi project references listed by CPC Interests, LLC dba Clark Pipeline Services in 2015 and generally received favorable feedback regarding their performance. Urban Engineering has also had a favorable experience working with CPC Interests, LLC dba Clark Pipeline Services on the following City projects, 2015 City Wide Distribution System R & R IDIQ (#8610) and Phase 2 of the Padre Island Water and Gas Pipeline Extension (#E10172). Page 2 of 3 III. Recommendation: Based on the information presented above it is the recommendation of Urban Engineering that the subject project be awarded, if the funds are available, to CPC Interests, LLC dba Clark Pipeline Services for a total sum of $5,100,000. This sum is to be awarded in multiple delivery orders over the next 365 calendar days based on the contractor's performance. Sincerely, URBAN ENGINEERING -7)-ce,) f411 -n J. Douglas McMullan, P. E. JDM/ Enclosures xc: Daniel Deng, P. E., Major Projects Engineer, Engineering Services Page 3 of 3 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting March 28, 2017 DATE: March 1, 2017 TO: Margie C. Rose, City Manager FROM: Dan Grimsbo, Interim Executive Director of Utilities DanG@cctexas.com (361) 826-1718 Interlocal Agreement for soil analysis CAPTION: Resolution authorizing the City Manager or designee to execute an Interlocal Agreement with Texas A&M AgriLife Extension Service for a soil testing program. PURPOSE: This item is to approve the Interlocal Agreement with Texas A&M AgriLife Extension for soil analysis. BACKGROUND AND FINDINGS: As part of the Storm Water Management Program, the Storm Water Public Education and Outreach Plan outlines a component to promote and publicize the proper use, application, and disposal of pesticides, herbicides, and fertilizers. As part of a multi -faceted approach, the Water Utilities Department will coordinate and sponsor soil testing for City of Corpus Christi residents. The City will reimburse Texas A&M AgriLife Extension Service for the soil analysis. This is the sixth year for the soil testing program. ALTERNATIVES: Use private laboratory for soil testing. 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: Utilities Department - Water FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016- 2017 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $152,400 $152,400 Encumbered / Expended Amount 75,601 75,601 This item 3,150 3,150 BALANCE $72,451 $72,451 Fund(s): Stormwater Fund Comments: Funding for the interlocal agreement has been approved in the FY 2016-2017 budget. RECOMMENDATION: Staff recommends approval of the resolution as presented. LIST OF SUPPORTING DOCUMENTS: Resolution Interlocal Agreement Storm Water Outreach and Education Plan Resolution authorizing the City Manager to execute an Interlocal Agreement with Texas A & M Agrilife Extension Service for a soil testing program WHEREAS, Texas A & M AgriLife Extension Service and the City of Corpus Christi ("City") are authorized by Chapter 791 of the Texas Government Code to enter into an interlocal cooperation contract; WHEREAS, Section 791.035 of the Texas Government Code states that a local government and an institution of higher education or university system may contract with one another to perform any governmental functions and services; WHEREAS, Section 791.035 provides that if the terms of the contract provide for payment based on cost recovery, any law otherwise requiring competitive procurement does not apply to the functions and services covered by the contract; WHEREAS, in 2009, the City received its Texas Pollution Discharge Elimination System (TPDES) Permit No. WQ0004200000 from the Texas Commission on Environmental Quality with respect to the discharge from the City's Municipal Separate Storm Sewer System (the "MS4 Permit"); WHEREAS, the City is in the process of renewing its MS4 Permit; WHEREAS, in accordance with its MS4 Permit, and in connection with the City's management of the Municipal Separate Storm Sewer System, the City developed a Storm Water Management Program (the "SWMP"); WHEREAS, in accordance with the SWMP, the City developed the Storm Water Education and Outreach Plan, a public education program to promote and publicize the proper use, application, and disposal of pesticides, herbicides, and fertilizers by public, commercial, and private applicators and distributors; and WHEREAS, the City's Storm Water Public Education and Outreach Plan provides that the City coordinate with the Texas A & M AgriLife Extension Service to sponsor soil testing for City of Corpus Christi residents; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. That the City Manager or designee is authorized to execute an Interlocal Agreement with Texas A & M Agrilife Extension Service for a soil testing program. A copy of the interlocal agreement is on file with the City Secretary's Office. This Resolution shall be and become effective immediately upon and after its adoption and approval. PASSED AND APPROVED this the day of ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Mayor Corpus Christi, Texas of The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn INTERLOCAL COOPERATION AGREEMENT BETWEEN TEXAS A & M AGRILIFE EXTENSION SERVICE AND THE CITY OF CORPUS CHRISTI REGARDING SOIL TESTING PROGRAM WHEREAS, Texas A & M AgriLife Extension Service and the City of Corpus Christi ("City") are authorized by Chapter 791 of the Texas Government Code to enter into an interlocal cooperation contract; WHEREAS, Section 791.035 of the Texas Government Code states that a local government and an institution of higher education or university system may contract with one another to perform any governmental functions and services; WHEREAS, Section 791.035 provides that if the terms of the contract provide for payment based on cost recovery, any law otherwise requiring competitive procurement does not apply to the functions and services covered by the contract; WHEREAS, in 2009, the City received its Texas Pollution Discharge Elimination System (TPDES) Permit No. WQ0004200000 from the Texas Commission on Environmental Quality with respect to the discharge from the City's Municipal Separate Storm Sewer System (the "MS4 Permit"); WHEREAS, the City is in the process of renewing its MS4 Permit; WHEREAS, in accordance with its MS4 Permit, and in connection with the City's management of the Municipal Separate Storm Sewer System, the City developed a Storm Water Management Program (the "SWMP"); WHEREAS, in accordance with the SWMP, the City developed the Storm Water Education and Outreach Plan, a public education program to promote and publicize the proper use, application, and disposal of pesticides, herbicides, and fertilizers by public, commercial, and private applicators and distributors; WHEREAS, the City's Storm Water Public Education and Outreach Plan provides that the City coordinate with the Texas A & M AgriLife Extension Service to sponsor soil testing for City of Corpus Christi residents NOW, THEREFORE, the parties hereto agree as follows: 1. PURPOSE. The purpose of this Agreement is for Texas A & M AgriLife Extension Service to provide Routine Analysis Soil Testing services for City of Corpus Christi residents as further described in Exhibit A. Page 1 of 6 2. STATEMENT OF WORK. Texas A & M AgriLife Extension Service agrees to perform all services as outlined in Exhibit A. 3. PERIOD OF PERFORMANCE. The work described in Exhibit A shall be conducted during the City fiscal year. This agreement shall be effective from the latest date of signatures below and continue until December 31, 2017, unless earlier terminated in accordance with Section 5 below. 4. PRICE AND PAYMENT. A. As compensation for the performance of services and work performed under this Agreement, the City agrees to pay Texas A & M AgriLife Extension Service $7.00 per soil test analysis, not to exceed $3,150 per City fiscal year, which Texas A & M AgriLife Extension Service acknowledges is full cost recovery of all services provided by or thru Texas A & M AgriLife Extension Service under this Agreement. B. The parties agree that all expenditures under this agreement shall be paid with current revenues of the paying party. C. The parties acknowledge that continuation of this agreement beyond City's current fiscal year is subject to annual budget process and appropriation of funds. D. Invoices for compensation shall be submitted to the following address: City of Corpus Christi Attn: Storm Water Division P.O. Box 9277 Corpus Christi, TX, 78469-9277 5. TERMINATION. Performance under this agreement may be terminated by either party with or without cause upon 90 days written notice. 7. NOTICES. All notices to parties under this Agreement shall be in writing and sent to the names and address stated below. Either party to the Agreement may change the name and address by notice to the other in accordance herewith, and any change shall take effect immediately upon receipt of the notice. Texas A&M AgriLife Extension Service 2147 TAMU College Station, Texas 77843 Page 2 of 6 CITY City of Corpus Christi Attn: Storm Water Division P.O. Box 9277 Corpus Christi, TX, 78469 8. AMENDMENTS AUTHORIZED. The representatives who were authorized to sign this agreement are authorized to execute minor amendments to this agreement, to extend deadlines or minor changes in the scope of work. 9. SEVERABILITY. If any of the provisions of the agreement in the application thereof to any person or circumstance, is rendered or declared illegal for any reason, or shall be invalid or unenforceable, the remainder of the agreement and the application of the provision to other persons or circumstances shall not be affected thereby, but shall be enforced to the greatest extent by applicable law. The City and Texas A & M AgriLife Extension Service agree that this agreement shall be reformed to replace the stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 10. DISPUTE RESOLUTION PROCESS. To the extent applicable, the dispute resolution procedures provided in Chapter 2260 of the Texas Government Code will be used to resolve contract claims under this contract 11. MISCELLANEOUS. This agreement constitutes the entire agreement between the parties relative to the subject matter, and may only be modified or amended by a written agreement signed by both parties. It shall be construed in accordance with the laws of the State of Texas. IN WITNESS WHEREOF, the parties have caused this agreement to be executed by their authorized representative. Page 3 of 6 Texas A&M AgriLife Extension Service By: Name: A• Schulze Title: Ate. � �� �� Date: 31te 11 Page 4 of 6 CITY OF CORPUS CHRISTI ATTEST Rebecca Huerta By: Margie C. Rose City Secretary City Manager APPROVED AS TO FORM: This % day of ! n , 2017 Lisa Aguilar, As For City Attorney IS nt City Attorney Page 5 of 6 EXHIBIT A Description of Routine Soil Test Analysis to be Performed by Texas A&M AgriLife Extension Service The Soil, Water and Forage Testing Laboratory, Department of Soil and Crop Sciences, Texas A&M AgriLife Extension Service will conduct a routine analysis of each soil sample submitted. A Routine analysis checks for pH, nitrate, nitrogen, phosphorus, potassium, calcium, magnesium, sodium, sulfur and Conductivity. Page 6 of 6 STORM WATER PUBLIC EDUCATION AND OUTREACH PLAN Introduction Ever since the City of Corpus Christ received its National Pollution Discharge Elimination System (NPDES) Permit in 1995, Storm Water and other departments have performed public education and outreach to improve water quality. The City's original Storm Water Management Plan described some of these activities. On August 11, 2008, the City received its new Texas Pollution Discharge Elimination System (TPDES) Permit. In order to maximize the flexibility of the new Storm Water Management Plan in regards to public education and outreach, staff decided to create a separate document: the "Storm Water Public Education and Outreach Plan". The function of this external document is to delineate a set of outreach programs performed or to be performed by the City without "freezing" those programs within the confines of the Storm Water Management Plan. By doing so, staff hope that it will be a simpler process to drop those outreach programs which have fulfilled their function or amend those which have not. It will be a simpler process, as well, to add new programs. The inherent ability to modify a document external to the Storm Water Management Plan gives the City the ability to respond more quickly to changes in the community and in regulation as well as budgetary considerations. The "Storm Water Public Education and Outreach Plan" should be considered a "living document." That is, what is presented in Fiscal 2008-2009 captures focus topics that were identified via a telephone survey conducted by Texas A&M — Corpus Christi's Social Science Research Center (SSRC) of the College of Liberal Arts as well as the exigencies of an emerging storm water utility and a new Texas Pollution Discharge Elimination System (TPDES) Permit ("Permit"). Over the course of time, the focus topics in this Plan will change to deal with new areas of concern brought to light from subsequent community surveys as well as changes in Permit requirements or community situations. This document is a tool to assist in developing the particulars for each targeted outreach effort. It is expected that each focus topic will take a period of time to a) develop the outreach materials and b) implement the outreach effort. This outreach effort should have a specific duration of activity, for example, six months, one year, two years, continuously, etc. At the end of the outreach period, an evaluation via survey or other methodology should take place to determine overall effectiveness of the program. The evaluation will determine whether additional modified efforts should take place or whether new focus topics should be addressed. Over time, the focus topics should become more and more specific to targeted audiences. Ultimately, the "Storm Water Public Education and Outreach Plan" will consist of focus topics directed towards service station operators, car wash owners, or other such very specific audiences and problems or issues related thereto. This will, of course, necessitate the use of surveys, inspections or other data - gathering tools in order to identify the issues. Plan Organization The "Storm Water Public Education and Outreach Plan" covers several topics. Each topic begins with a table which summarizes the driving force(s), goals, objectives and methods with which the objectives will be met. As this is a living document, the methods of achieving goals 1 may not represent everything that is actually done. However, they do provide a baseline of ideas for reaching the desired target audiences. As each focus topic is addressed by the Outreach and Education staff, the message(s) and distribution methods will be more fully fleshed out. Following each summary table, information is provided which gives more insight both on what is driving the outreach and education Focus topic and how that program is to be implemented. Finally, a copy of the 2008 Storm Water Survey instrument and survey results is provided. It is anticipated that the City of Corpus Christi Storm Water Survey will be performed approximately every five years. This will allow staff the ability to assess the effectiveness of ongoing outreach and education programs as well as to identify new areas of concern regarding non -point source pollution. It is important that specific questions in the 2008 survey which generate Focus topics be included each time the survey is performed so that trends in response can be determined. 2 FOCUS: TWO SEPARATE DRAINAGE SYSTEMS Driving Force: In FY 09-10, the City will start charging a separate storm water utility fee to finance the City's Storm Water Management Program. Initial survey indicates more than half the population does not know that the storm water system is separate from wastewater drainage system or that storm water runoff is not treated. Goal: Within one year of implementation, increase awareness by more than 75% of the population that there are two separate drainage systems and that storm water runoff is untreated. Objective: Develop and implement a public education program about the two drainage systems. Objective Target Audience Message Format Distribution Responsible Party Evaluation Develop and implement a public education program about the two drainage systems. Utility Customers The storm water system is separate from the wastewater system and storm water is not treated. Tri -fold brochure Via utility bills Storm Water Dept. Post -program survey Viewing public Power Point slide Bulletin Board message — CCTV Subscribers 1/4 page ad Caller -Times Public Tri -fold brochure City website 3 FOCUS: TWO SEPARATE DRAINAGE SYSTEMS Background In a statistically valid telephone survey of Corpus Christi residents performed by SSRC in May 2008, 34.2% of the population thought the City's sanitary sewer system and storm water system flowed through the same pipe Another 20.5% did not know whether or not this condition was true or refused to answer the question (2008 survey question #6). Additionally, nearly 31% of the population believes storm water runoff is treated or do not know if it is or not (2008 survey question #7). Given that potentially 54.7% of the Corpus Christi population does not know that storm water systems are separate from wastewater systems and that storm water runoff is untreated, one of the first steps in the Outreach Plan should be to educate the population on this regard. A person who thinks storm water is treated may behave differently than one who understands the significance of untreated storm water. Simultaneous to the citizen survey, City Council approved an ordinance creating a storm water utility. Previous to this point, the Storm Water Department was part of the Water Fund. Effective with Fiscal Year 2008-2009, Storm Water had its own fund. Separate charges for storm water are expected to begin in August 2009. The Storm Water Department will be able to take advantage of heightened publicity during the charge development stage to further educate the population on the separate storm sewer system (MS4). Goal The goal of this outreach topic is to educate the population so that more than 75% know that the storm water system and the wastewater system are separate. Additionally, the populace will have a better understanding of the structure of the system and how it operates. General information regarding non -point source pollution and storm water runoff will be provided as well. Objective The objective of this Focus topic is to develop a comprehensive public education program regarding the storm water and wastewater systems, focusing on the MS4. The fundamental message is that the storm water system is separate from the wastewater system and that storm water is not treated. Methodology The message of this topic is that the storm water system is separate from the wastewater system and that storm water is not treated. A multi -pronged approach to outreach on this Focus topic will be used. The components will include the following: • Target Audience: Utility customers. Utility customers will receive a brochure with their bills in mid -Fiscal 2008-2009. This brochure will subsequently be available as part of the new -customer information packet at the City's Utility Business Office. This 4 brochure will also be available at Department presentations and exhibits. Duration: 1 month initial mailout, ongoing thereafter. • Target Audience: Viewing public. A simple bulletin board message on the City's closed circuit TV (Channel 20) will be aired during Fiscal 2008-2009 and 2009-2010. Duration: 1 month, repeated a second year. • Target Audience: Subscribers. An advertisement will be developed and published in the Corpus Christi Caller -Times during the latter half of Fiscal 2008-2009. This ad will be repeated every two years. Duration: published one day. • Target Audience: On-line viewers. The brochure developed for utility customers will be posted on the City's website. Duration: ongoing. Evaluation A question regarding the separate systems will be added to the City of Corpus Christi Citizen Satisfaction Survey performed by SSRC. The results of this question will determine whether the outreach program in its entirety or in a modified state needs to be repeated. 5 FOCUS: STORM WATER UTILITY SERVICES Driving Force: In FY 09-10, the City will start charging a separate storm water utility fee to finance the City's Storm Water Management Program. Initial survey indicates that half the population does not understand that they benefit every day from services delivered by the Storm Water Department. Goal: Within one year of implementation, increase awareness by more than 75% of the population of the benefits of storm water services. Objective: Develop and implement a public education program about the utility. Objective Target Audience Message Format Distribution Responsible Party Evaluation Develop and implement a public education program about the utility. Utility Customers You benefit every day from the storm water department's services. Tri -fold brochure Via utility bills Storm Water Department Post - program survey Viewing public Informational short film CCTV Subscribers 1/4 page ad Caller -Times Public Tri -fold brochure City website 6 FOCUS: STORM WATER UTILITY SERVICES Background During the May 2008 Storm Water Survey fully 67.3% of the respondents said they had not personally benefited from storm water services (2008 survey question #33). Given that the population drives on City streets daily and that localized flooding rarely occurs, this seems to demonstrate a significant lack of understanding regarding the range of Storm Water Department services. Given the fact that a separate line item for Storm Water Utility charges will be appearing on utility customers' bills effective August 2009, it is important that citizens understand the benefits for which they are paying. Goal The goal of this outreach topic is to educate the population so that more than 75% knows that they benefit daily from the services of the Storm Water Department. Objective The objective of this Focus topic is to develop a comprehensive public education program regarding the Storm Water Department's services and the use to which collected revenues will be made. In doing so, it is hoped that the populace will understand the value of the storm water utility. Methodology The message of this topic is that citizens benefit every day from the Storm Water Department's services. A multi -pronged approach to outreach on this Focus topic will be used. The components will include the following: • Target Audience: Utility customers. Utility customers will receive a brochure with their December 2008 bills. This brochure will subsequently be available as part of the new -customer information packet at the City's Utility Business Office. This brochure will also be available at Department presentations and exhibits. Duration: 1 time initial mailout, ongoing at UBO. • Target Audience: viewing public. A short informational video will be produced mid - Fiscal 2008-2009 which will be aired several times a week on the City's closed circuit television station (Channel 20) during the spring and summer of 2009. This video will be continued in rotation, but at a less intense level subsequently. Duration: ongoing. • Target Audience: Subscribers. An advertisement will be developed and published in the Corpus Christi Caller -Times during the latter half of Fiscal 2008-2009. This ad will be repeated in Fiscal 2009-2010. Duration: 1 day publishing, repeated a second year. • Target Audience: On-line viewers. The brochure developed for utility customers will be posted on the City's website. Duration: ongoing. 7 Evaluation A question asking if a respondent has personally benefitted from Storm Water Department services will be added to the City of Corpus Christi Citizen Satisfaction Survey performed by SSRC. The results of this question will determine whether the outreach program in its entirety or in a modified state needs to be repeated. 8 FOCUS: POLLUTION PREVENTION TRAINING - OPERATIONS Driving Force: City forces perform functions during the course of daily operations which can lead to significant non -point source pollution. Although each department has its own BMP's, the City does not have a comprehensive training program targeting storm water pollution prevention. Goal: Train employees of each department on ways to recognize, and to prevent, non -point source pollution during routine work. Objective: Develop and implement a department -specific pollution prevention training program City- wide. Objective Target Audience Message Format Distribution Responsible Party Evaluation Develop and City It's our Permit Training In-house Environmental Pre- and implement a Depart- and our program training Services Post -training department- specific ments responsibility. Department & Storm Water evaluations Periodic pollution prevention training program City-wide. Know how your day-to-day operations impact the MS4 and how you can perform your job while minimizing pollution. Department audits 9 FOCUS: POLLUTION PREVENTION TRAINING - OPERATIONS Background City forces perform functions during the course of daily operations which can lead to significant non -point source pollution. Although each department has its own BMP's, the City does not have a comprehensive training program targeting storm water pollution prevention. Implementation Date / Sequence Fiscal year 2009-2010 Goal The goal of this outreach topic is to train employees within specific departments to use nonpolluting practices in their day-to-day operations . Objective The objective of this Focus topic is to develop and implement a department -specific training program City-wide. Methodology The message of this topic is "It's Our Permit and Our Responsibility." City staff needs to know how their day-to-day operations impact the MS4 and how they can perform their jobs while minimizing pollution. • Target Audience: City Departments. A multi -faceted training program will be implemented by the Environmental Services and Storm Water departments. Although the program is yet to be developed, it will include an array of training methodologies such as classroom presentations (with Power Point) and on-site demonstrations with hands-on practice. The program will be designed such that after initial training, departments may request additional training on an as -needed basis. Evaluation Students will receive a "status of knowledge and practices" quiz before training begins. This quiz will be retaken after the training program is completed. Additionally, participating departments will be subject to periodic audits to ensure compliance with best management practices. 10 FOCUS: POLLUTION PREVENTION TRAINING - CONSTRUCTION SITES Driving Force: Commercial construction forces perform functions during the course of daily operations which can lead to significant non -point source pollution. Although each company may have its own BMP's, the City does not have a comprehensive training program targeting storm water pollution prevention. Goal: Train employees of each construction company on ways to recognize, and to prevent, non -point source pollution during routine work. Objective: Develop and implement a pollution prevention training program for construction site inspectors, contractors and operators. Objective Target Audience Message Format Distribution Responsible Party Evaluation Develop and Commercial How to Training Similar to San Storm Water Pre- and implement a sector: properly program Antonio Water Department Post -training pollution contractors conduct a System' s evaluations prevention and site site TPDES Periodic training program for operators. inspection and the Inspector Training inspections construction site inspectors, contractors and operators. City sector: construction inspectors. regulatory expectations of such an inspection. Workshop 11 FOCUS: POLLUTION PREVENTION TRAINING - CONSTRUCTION SITES Background Commercial construction forces perform functions during the course of daily operations which can lead to significant non -point source pollution. Although each company has its own BMP's, the City does not have a comprehensive training program targeting storm water pollution prevention. By having inspectors, contractors and operators of construction sites go through the same training, each party will know exactly what the regulations and expectations are and non- compliance should be reduced. Goal The goal of this Focus topic is to train construction site inspectors and members of the construction industry in the correct way to perform inspections and the regulatory requirements regarding those inspections. Objective The objective of this Focus topic is to develop and implement a pollution prevention training program for construction site inspectors, contractors and operators. Methodology The message of this topic is that developers and contractors need to know how their day-to-day operations impact the City's MS4 and how they can perform their jobs while minimizing pollution and meeting regulations. • Target Audience: Commercial contractors and site operators and City construction inspectors. The City of Corpus Christi will implement a training program based on the San Antonio Water System's "TPDES Inspector Training Workshop" program. Duration: 1/2 day workshops, frequency to be determined. Evaluation Students will receive a "status of knowledge and practices" quiz before training begins. This quiz will be retaken after the training program is completed. Additionally, participating departments will be subject to periodic audits to ensure compliance with best management practices. 12 FOCUS: POLLUTION PREVENTION - BACTERIA Driving Force: According to initial surveys, 20% of the population is not aware that pet waste contains bacteria and adversely impacts storm water runoff which ultimately flows untreated to receiving waters. Goal 1: Change population behavior by increasing awareness of the impact of pet waste on storm water runoff and encourage behaviors that minimize bacteria levels in local water bodies. Goal 2: Increase reporting of wastewater manhole overflows. Objective 1: Alter the way the public cleans up after their pets, picking up and disposing of pet waste properly. Objective 2: Make citizens more aware of wastewater manhole overflows and how/when to report them. Objective Target Audience Message Format Distribution Responsible Party Evaluation 1. Alter the way the public cleans up after their pets, picking up and disposingdoesn't of pet waste properly. Pet owners "Please Pick Up My Poop" Pet waste may be natural, and it may be organic, but that mean it should be left on the ground. Pet waste left on the ground ends up in our waterways after a rain storm. That can make our beaches unsafe for swimming It's up to the pet owner to properly dispose of pet waste. Tri -fold brochure Local pet stores and veterinary offices Storm Water Department Post - program survey City website Park & Recreation Department (dog park) Power Point slide Bulletin Board message - CCTV PSA Cable TV CCTV Billboard (TCEQ) Crosstown Expressway 13 Objective Target Audience Message Format Distribution Responsible Party Evaluation 2. Ropes and Report Flyer Targeted Storm Water Reduction Make citizens more aware of wastewater manhole overflows and how/when to report them. Cole Park neighborhood residents overflows mailout Department in number of unreported overflows 14 FOCUS: POLLUTION PREVENTION - BACTERIA Background In the City's 2008 Storm Water Survey 20% of the participants either did not believe pet waste impacted storm water runoff or did not know/refused to answer the question (2008 survey question #8). Of the 187 participants (43%) that answered the question regarding whether or not they picked up pet waste, 25.7% replied in the "Never / Rarely / Sometimes / Often" ranges (2008 survey question #24). Pet and animal waste, along with illicit discharges of wastewater, is a leading cause of harmful bacteria in receiving bodies of water. Because the City's receiving waters are used for recreational and commercial purposes, it is important to reduce the presence of harmful bacteria and maintain clean water quality. Goal The goal of this Focus topic is to increase the population's awareness of the impact of pet waste on storm water runoff and to encourage behaviors that minimize harmful bacteria levels in local water bodies. Objective The objective of this Focus topic is to alter the way the public cleans up after their pets such that they pick up and dispose of pet waste properly. Methodology The message of this topic is that pet waste may be natural and it may be organic, but it doesn't belong on the ground. Pet waste left on the ground ends up in our waterways after a rain storm. The resulting polluted runoff can make local beaches unsafe for swimming or other recreational activities. It is the pet owner's responsibility to properly dispose of pet waste. • Target Audience: Pet Owners. • The Storm Water Department will use a multi -faceted approach to address this subject: o A brochure directed towards pet owners regarding proper disposal of pet waste will be developed and will be distributed to local pet stores and veterinary offices / hospitals. This brochure will also be given to the City's Park & Recreation Department for use with their dog park program and will be posted on the City's website. This brochure will be continuously available to the public. Duration: ongoing following implementation. o A simple Power Point slide will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). Duration: This message will run continuously. o A Public Service Announcement will be created and will be aired on both cable television and the City's closed circuit television station. The PSA will run 15 continuously on CCTV and will run on a concentrated basis during a two month period every two years. Duration: ongoing following implementation. o A billboard such as the TCEQ "Please Pick Up My Poop" design, will be displayed on Crosstown Expressway and South Padre Island Drive (East of Crosstown Expressway). These billboards will be displayed for a one-month period each during the two-month period that PSA's are running on cable television every two years. Duration: two months. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. 16 FOCUS: LITTER REDUCTION Driving Force: Regulation prohibits putting anything but rain water into the City's MS4 which goes untreated into receiving water bodies. Goal: Reduce the amount of floatables in the MS4 and in storm water runoff. Objective: Promote awareness of the impact of litter on our local receiving water bodies and stopping litter at the source. Objective Target Audience Message Format Distribution Responsible Party Evaluation Promote awareness of the impact of litter on our local receiving water bodies and stopping litter at the source. Elementary School Children "Keep it clean!" Tex & Dot presentations Elementary school classes Storm Water Department Post - presentation oral quiz Middle School Children Storm Water Curriculum Area Middle Schools In -class testing High School Children Storm Water Curriculum Area High Schools In -class testing Public Billboards High traffic areas or targeted neighborhoods Post -program surveys PSA Cable TV CCTV "Trash Trail" Caller -Times "After the Storm" video CCTV Promotionals & literature Various opportunities Stencils Stenciling events Elementary School Children Anti -litter / anti- pollution Classroom lessons Schools upon request Water Department Teachers' guides City website Reduce, Reuse & recycle Classroom lessons Upon request Elementary School children Reduce, Reuse & recycle Information City website Solid Waste Services Kirby Classrooms & community events Public Educational Literature Community events 17 FOCUS: LITTER REDUCTION Background Federal and State regulations prohibit putting anything but rain into the City's MS4. The City's TPDES Permit specifically requires that the City implement a public education program component with an element to promote and publicize public reporting of illicit discharges or improper disposal of materials, including floatables, into the MS4. Various departments within the City participate in anti -littering outreach and education efforts. This is a long-term part of Solid Waste's recycling program, Water's water quality program, and the Storm Water Department's polluted runoff prevention program. Other departments participate in anti -littering and non -point source pollution outreach, but not through formal programs. For Water, Storm Water and Solid Waste, this focus is continuous and ongoing and constitutes a significant part of the departments' outreach and education efforts. Goal The goal of this Focus topic is to decrease the amount of floatables in the MS4 and in storm water runoff. Objective The objective of this Focus topic is to promote awareness of the impact of litter on our local receiving water bodies and alter public behavior to stop litter at the source. Methodology The message of this topic is "Keep it clean!" The only thing that should flow into the storm drainage system is clean rain water. Target Audience: School children (Elementary, Middle and High School) and the Public. Three utility departments uses different mechanisms to implement education and outreach for this topic. • The Storm Water Department uses a multi -faceted approach to the subject: o The "Keep it Clean" motto and the department's hot line phone number appear on all promotional items, literature, billboards and public service announcements. o The Tex & Dot activity book provided courtesy of the Texas Department of Transportation is used with Elementary School children. o A Storm Water Curriculum will be developed and will be used in area schools. o Outreach materials created by school-age children as a part of the curriculum will be used in the department's public outreach efforts. o Billboards will be placed at strategic locations throughout the City and will be rotated on a routine basis. o Public Service Announcements will be aired on cable television and the City's closed circuit television station (Channel 20). o The "After the Storm" video regarding non -point source pollution will be aired on the City's closed circuit television station. 18 o A full page advertisement/printing of the trash trail will take placed in the Corpus Christi Caller -Times newspaper every five years. o The department will give presentations to local schools, teachers' training seminars and other organizations. o The department will have booths at local community events. o The department will do inlet stenciling events with local organizations. • The Water Department also uses several resources for water quality outreach and education: o Several activity books / curricula are available for use by local schools upon their request. These include Toby Globy, Major Rivers, Water Wise, The Story of Drinking Water, and Splash. o Provide literature on clean water quality at community events. • The Solid Waste Department uses several resources for promoting reducing, reusing and recycling: o Maintain information on City's website. o Use the mechanical mascot Kirby at events. o Provide literature at community events. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. 19 FOCUS: HOUSEHOLD HAZARDOUS WASTE MANAGEMENT Driving Force: There is a need to promote and publicize the proper management and disposal of used oil and household hazardous wastes. Goal: Promote proper management and disposal of used oil and household hazardous waste. Objective: Educate the public, commercial and private sectors on the proper management and disposal of used oil and household hazardous waste. Objective Target Audience Message Format Distribution Responsible Party Evaluation Educate the public, commercial and private applicators and distributors on the proper management and disposal of used oil and household hazardous waste. Public Dispose of HHW and used oil appropriately. Information City website Solid Waste Services Amount disposed of Educational literature Presentations, booths, etc. PowerPoint Slide Bulletin Board message — CCTV PowerPoint Slide Bulletin Board message — CCTV Storm Water Department Post- program survey Educational literature Presentations, booths, etc. City website 20 FOCUS: HOUSEHOLD HAZARDOUS WASTE MANAGEMENT Background Federal and State regulations prohibit putting anything but rain into the City's MS4. The City's TPDES Permit specifically requires that the City implement a public education program component with an element to promote and publicize the proper management and disposal of used oil and household hazardous wastes. The City's Solid Waste Services Department holds primary responsibility for management of the collection of household hazardous waste, including residential used motor oil. The Storm Water Department provides financial assistance to this effort as well as providing information to the public. Goal The goal of this Focus topic is to promote proper management and disposal of used oil and household hazardous waste. Objective The objective of this Focus topic is to alter peoples' behavior by educating the public and private sectors on the proper management and disposal of used oil and of household hazardous waste. Methodology The message of this topic is to dispose of chemicals properly. A catchy motto will be developed to reflect this message succinctly. • Target Audience: the Public. • The Storm Water Department will use a multi -faceted approach to address this subject: o Two new brochures will be developed in calendar 2009: one for household hazardous waste and one for disposal of used oil. These brochures will also be posted on the City's website and will be available to the public. o Simple Power Point slides will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). These messages will run continuously. o During presentations to the public, or at community events, information will be provided regarding this Focus topic. o Information on proper disposal of household hazardous waste and used motor oil will be provided at workshops for residential sector herbicide, pesticide and fertilizer application, etc. 21 • The Solid Waste Services Department will use a multi -faceted approach to address this subject: o Information regarding the J. C. Elliot Transfer Station will be posted on the City's website 0 o Educational literature regarding household hazardous waste and used motor oil disposal will be made available at community events. o A Power Point slide will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). The message will run continuously. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. Additionally, information from Solid Waste Services regarding amount of items picked up at the Citizens Transfer Station will be monitored and compared from year to year. If possible, information will be garnered from local used motor oil recycling centers. 22 FOCUS: FERTILIZERS, PESTICIDES & HERBICIDES MANAGEMENT Driving Force: Nearly half the population fertilizes their lawns, but of those the vast, majority has not had their soil tested to determine if fertilizer is even needed. Herbicides are frequently included in fertilizers so these may be applied inappropriately as well. There is a need to promote and publicize the proper use, application, and disposal of pesticides, herbicides, and fertilizers by public, commercial, and private applicators and distributors to minimize the discharge of the substances into storm water runoff. Goal: Minimize the application of chemical fertilizers, herbicides and pesticides and promote natural alternatives Objective: Increase awareness of non -chemical alternatives to herbicides, pesticides and fertilizers and to educate the public, commercial and private applicators and distributors on the proper use, application and disposal of pesticides, herbicides, and fertilizers. Objective Target Audience Message Format Distribution Responsible Party Evaluation Increase awareness of non- chemical alternatives to herbicides, pesticides and fertilizers and to educate the public, commercial and private applicators and distributors on the proper use, application and disposal of pesticides, herbicides, and fertilizers. Homeowners / occupants, homeowners' associations / and apartment / landscape managers Don't weed and feed Workshops (Residential and Commercial) Public facility Storm Water Department Post -workshop survey Bulletin Board message — CCTV Free soil testing Newspaper advertisements Number of redeemed coupons Brochures & literatures Educational literature Presentations, booths, etc. Post -program survey City website Garden Nature's Way with Xeriscape or Earthkind techniques Xeriscape Learning Center and Design Garden Located at Museum Water Dept. & Museum Educational Literature Presentations, booths, etc. Workshop Public facility PowerPoint slide Bulletin Board message - CCTV 23 Objective Target Audience Message Format Distribution Responsible Party Evaluation Increase awareness of non- chemical alternatives to herbicides, pesticides and fertilizers and to educate the public, commercial and private applicators and distributors on the proper use, application and disposal of pesticides, herbicides, and fertilizers. Homeown ers / occupants. The right place at the right time. Know the right way to apply, store and dispose of pesticides, herbicides and fertilizers Workshops - Residential Public facilities Storm Water Department Post -workshop survey Bulletin Board message — CCTV Educationa 1 literature Presentations, booths, etc. Post -program survey City website PSA Cable TV CCTV Commerci al and private applicators and distributors Workshops - Commercia 1 Public facilities Post -workshop survey Educationa 1 literature Targeted mailing City website 24 FOCUS: FERTILIZERS, PESTICIDES & HERBICIDES MANAGEMENT Background Federal and State regulations prohibit illicit discharges and improper disposal into the City's MS4. The City's TPDES Permit specifically requires that the City implement a public education program component with an element to promote and publicize the proper use, application, and disposal of pesticides, herbicides, and fertilizers by public, commercial, and private applicators and distributors. Goal The goal of this Focus topic is to minimize the application of chemical fertilizers, herbicides and pesticides and to promote natural alternatives. Objective The objective of this Focus topic is to increase awareness of non -chemical alternatives to herbicides, pesticides and fertilizers and to educate the public, commercial and private applicators and distributors on the proper use, application and disposal of pesticides, herbicides, and fertilizers. Methodology This Focus topic has three messages: 1) do not weed and feed and use non -chemical means where possible; 2) garden the Xeriscape and Earthkind way; and 3) know the right way to apply, store and dispose of pesticides, herbicides and fertilizers. • Target Audiences: home owners or occupants, homeowners' associations, apartment landscape managers, commercial and private applicators and distributors of pesticides, fertilizers and herbicides. o The Storm Water Department uses a multi -faceted approach to each of the first and third subjects: ■ Do not fertilize / use non -chemical means where possible: • Workshops will be held on a routine basis for both the residential and commercial sectors. • A simple Power Point slide will be created and will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). The message will run continuously. • The department will coordinate with the Texas AgriLife Extension Center to sponsor free soil testing for City of Corpus Christi 25 residents. This will be advertised in the newspaper and in department literature. • A brochure will be created regarding this subject and will include a coupon for free soil testing. This brochure will be made available at all events where the department has a booth or does a presentation. • The brochure will be made available on the City's website and a printable coupon for free soil testing will be developed. • Know the right way to apply, store and dispose of pesticides, herbicides and fertilizers: • Workshops will be held on a routine basis for the commercial sectors. • A simple Power Point slide will be created and will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). The message will run continuously. • A brochure for the residential sector will be created regarding this subject. This brochure will be made available at all events where the department has a booth or does a presentation and will be posted on the City's website. • A Public Service Announcement will be created and will be aired on cable television and on the City's closed circuit television station (Channel 20). • A targeted mailing to the commercial sector will be done that will include a brochure specific to this sector. o The Water Department addresses the Xeriscape gardening message in a multitude of ways: • The Xeriscape Learning Center and Design Garden is maintained at the City's Museum of Natural History. • Educational literature regarding xeriscape gardening is made available at community events. 26 • A Power Point slide is cycled through the City's bulletin board system on its closed circuit television station (Channel 20). The message runs continuously. • A presentation on Xeriscape gardening is given at Storm Water Department -sponsored workshops for the commercial and residential sectors. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place every five years will be compared to determine the change in behaviors regarding soil testing, fertilizing, and disposal of chemicals. Additionally, the number of coupons for free soil testing redeemed by the public will be recorded. 27 FOCUS: STORM WATER SAFETY Driving Force: Although initial surveys indicate that a large majority of the population understands that it is never safe to drive through a flooded street or to play in flood waters, this is a public safety message that must be constantly relayed. Goal: Maintain awareness about storm water safety. Objective: Continue the message of storm water safety issues. Objective Target Audience Message Format Distribution Responsible Party Evaluation Continue the message of storm water safety issues. General Public Play it safe: stay out of storm waters. AND National Weather Service's "Turn Around Don't Drown" campaign PSA Cable television Storm Water Department Post - program survey PSA CCTV Viewing public Power Point slide Bulletin Board message — CCTV Subscribers 1/4 page ad Newspaper Ad General public (something) City website 28 FOCUS: STORM WATER SAFETY Background Because of the inherent risks of playing in, or driving through, storm water runoff, it is important that the City continuously remind the public about storm water safety. Goal The goal of this Focus topic is to maintain public awareness of the dangers of storm water runoff and that it is never safe to play in, or drive through, storm water runoff. Objective The objective of this Focus topic is to continue educating the public on storm water safety. Methodology There are two messages to this topic: Play it safe, stay out of storm water, and "Turn Around Don't Drown." • Target Audience: the Public. The Storm Water Department will use a multi -faceted approach to address this subject: o A Public Service Announcement will be developed regarding storm water safety. This PSA will be aired on cable television and on the City's closed circuit television station (Channel 20). Duration: 1 month each year. o A simple Power Point slide will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). This message will run continuously. o A 1/4 page advertisement will be developed and will be printed in the Corpus Christi Caller -Times. Duration: 1 day per year. o The City will implement aspects of the National Weather Service's "Turn Around Don't Drown" program. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. 29 FOCUS: MINIMIZING OVERGROWTH & SEDIMENT ACCUMULATION Driving Force: The City's curbs and gutters are part of the MS4. City ordinance requires property owners or occupants to keep their abutting curbs, gutters and sidewalks clear of debris, overgrowth and sediment. Goal: Citizens will keep their curbs, gutters and sidewalks clear of overgrowth and sediment. Objective 1: Educate property owners and occupants about the need to keep their curbs & gutters free and clear. Objective 2: Reduce the number of Code Enforcement citations and warnings Objective Target Audience Message Format Distribution Responsible Party Evaluation Educate property owners, tenants and occupants on why they need to keep their sidewalks, curbs and gutters clear of debris, overgrowth and sediment. Property owners, occupants or tenants Keep it clean. Keep it clear. By keeping your sidewalks, curbs and gutters clean and clear, you allow storm water to keep flowing. That reduces the chance of flooding and pooling of water. Informational short film CCTV Storm Water Department Post - program survey PowerPoint Slide Bulletin Board Message - CCTV Brochures Exhibits and presentations Ordinance (and its meaning) City website Code Enforcement citations / warnings for overgrowth, etc. go down in number. Brochure Locations receiving citations or warnings from Code Enforcement Neighborhood Services Number of citations / warnings should go down. 30 FOCUS: MINIMIZING OVERGROWTH & SEDIMENT ACCUMULATION Background The City's curbs and gutters are part of the MS4. City ordinance requires property owners or occupants to keep their abutting curbs, gutters and sidewalks clear of debris, overgrowth and sediment. Goal The goal of this Focus topic is to have citizens keep their curbs, gutters and sidewalks clear of overgrowth and sediment. Objective There are two objectives to this topic. The first is to educate property owners and change their behaviors so that they keep their curbs, gutters and sidewalks clear of overgrowth and sediment. The second objective is to reduce the number of citations and warnings given by Neighborhood Services Code Enforcement officers for this type of ordinance violation. Methodology The message of this topic is to "Keep it Clean, Keep it Clear." By keeping sidewalks, curbs and gutters clean and clear, property owners allow storm water to keep flowing. Free-flowing runoff reduces the chance of localized flooding and pooling of storm water. • Target Audience: property owners, tenants and occupants. The Storm Water Department will use a multi -faceted approach to address this subject: o An informational short film will be developed regarding the ordinance and its importance to the MS4. This film will be aired on the City's closed circuit television station (Channel 20). o A simple Power Point slide will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). This message will run continuously. o A brochure will be developed which describes the ordinance, what is required and why. This brochure will be available in the Neighborhood Services department and will be available at all department exhibits. o A webpage regarding the ordinance will be created and will be posted on the City's website. o Neighborhood Services Code Enforcement officers will be given a supply of these brochures so that they may leave them at the locations where ordinance violations are cited or warned against. 31 Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. Additionally, the number of warnings or citations for violation of the ordinance will be compared from year to year. 32 FOCUS: BRUSH MANAGEMENT Driving Force: Property owners, tenants, and occupants continue to put their brush and bulky trash in the street or overhanging the curb / gutter. This can block storm water runoff, preventing it from freely flowing in the MS4, and thus potentially causing localized flooding. Goal: Property owners, tenants, and occupants will properly place brush and bulky trash in the street / curb / gutter area in accordance with City ordinance. Objective 1: Educate property owners, tenants, and occupants on proper placement of brush and bulky trash in the street / curb /gutter. Objective 2: Reduce the number of Code Enforcement citations and warnings Objective Target Audience Message Format Distribution Responsible Party Evaluation Educate property owners, tenants, and occupants of improper placement of brush and bulky trash in the street / curb /gutter. Property owners, occupants or tenants Keep it clean. Keep it clear. By keeping the streets, curbs and gutters clean and clear, you allow storm water to keep flowing. That reduces the chance of flooding and pooling of water. Informational short film CCTV Storm Water Department Post - program survey Brochures Exhibits and presentations Ordinance (and its meaning) City website Information City website Solid Waste Services Brush pick- up schedule Utility Bills Code Enforcement citations / warnings for brush, etc. in street go down in number. Brochure Locations receiving citations or warnings from Code Enforcement Neighborhood Services Number of citations / warnings should go down. 33 FOCUS: BRUSH MANAGEMENT Background Property owners, tenants, and occupants continue to put their brush and bulky trash in the street or overhanging the curb / gutter. Not only does this allow more leaves and trash to flow into the MS4, but it can block storm water runoff, preventing it from flowing freely in the MS4, and thus potentially causing localized flooding. City Ordinance requires that brush not be placed in the curb or in roadside ditches unless authorized by the Storm Water Director. Goal The goal of this Focus topic is to have property owners, tenants, and occupants properly place brush and bulky trash out for pick up in accordance with City ordinance. Objective There are two objectives to this topic. The first is to educate property owners, etc. and change their behaviors so that they set out their brush and bulky trash in accordance with City ordinance. The second objective is to reduce the number of citations and warnings given by Neighborhood Services Code Enforcement officers for this type of ordinance violation. Methodology The message of this topic is to "Keep it Clean, Keep it Clear." By keeping sidewalks, curbs and gutters clean and clear, property owners keep leaves and debris out of the MS4 and allow storm water to keep flowing. Clear curbs and gutters help to ensure non -polluted storm water runoff and free-flowing runoff reduces the chance of localized pooling and flooding of storm water. • Target Audience: property owners, tenants and occupants. The Storm Water Department will use a multi -faceted approach to address this subject: o An informational short film will be developed regarding the ordinance and its importance to the MS4. This film will be aired on the City's closed circuit television station (Channel 20). o A simple Power Point slide will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). This message will run continuously. o A brochure will be developed which describes the ordinance, what is required and why. This brochure will be available in the Neighborhood Services department and will be available at all department exhibits. o A webpage regarding the ordinance will be created and will be posted on the City's website. 34 o Neighborhood Services Code Enforcement officers will be given a supply of these brochures so that they may leave them at the locations where ordinance violations are cited or warned against. o Solid Waste Services maintains information on the City website regarding proper setout of brush/bulky trash as well as the brush pick-up schedule. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. Additionally, the number of warnings or citations for violation of the ordinance will be compared from year to year. 35 FOCUS: GRASS CLIPPINGS MANAGEMENT Driving Force: Residential and commercial mowers continue to blow grass into the street and inlets. Goal: Property owners, tenants, and occupants will properly dispose of grass clippings in accordance with City ordinance. Objective 1: Educate property owners, tenants, and occupants on proper disposal of grass clippings. Objective 2: Reduce the number of Code Enforcement citations and warnings Objective Target Audience Message Format Distribution Responsible Party Evaluation Educate property owners, tenants, and occupants on proper disposal of grass clippings Property owners, occupants or tenants and commercial lawn care services In the grass or in the trash! By keeping grass clippings off of the street and out of the inlets, you allow storm water to keep flowing. That reduces the chance of flooding and helps keep water nutrient - free. Informational short film CCTV Storm Water Department Post - program survey Brochures Exhibits and presentations Ordinance (and its meaning) City website Brochure Locations receiving citations or warnings from Code Enforcement Neighborhood Services Number of citations / warnings should go down. Code Enforcement citations / warnings for brush, etc. in street go down in number. 36 FOCUS: GRASS CLIPPINGS MANAGEMENT Background Only 16 out of 345 respondents in the 2008 Storm Water Survey did not indicate that they disposed of grass clippings in an appropriate manner. Anecdotally and observationally, however, improper disposal continues to be a problem. Grass clippings blown into the street or into inlets can clog the storm drainage system, potentially leading to localized flooding. Grass clippings that make it to receiving water bodies can decompose and increase the nutrient level, thus choking fish and water plants. It is important that the public correct their behavior in this regard. Goal The goal of this Focus topic is to have property owners, tenants, and occupants and commercial lawn care services properly dispose of grass clippings in accordance with City ordinance. Objective There are two objectives to this topic. The first is to educate property owners, etc. and change their behaviors so that they dispose of their grass clippings appropriately in accordance with City ordinance. Part of this objective includes publicizing more effectively how the public can report inappropriate grass blowing. The second objective is to reduce the number of citations and warnings given by Neighborhood Services Code Enforcement officers for this type of ordinance violation. Methodology The message of this topic is to "Keep it Clean, Keep it Clear." By keeping grass clippings out of storm drains, runoff can flow freely and there is less degradation of receiving water bodies. • Target Audience: property owners, tenants and occupants and commercial lawn care services. The Storm Water Department will use a multi -faceted approach to address this subject: o An informational short film will be developed regarding the ordinance and its importance to the MS4. This film will be aired on the City's closed circuit television station (Channel 20). o A simple Power Point slide will be cycled through the City's bulletin board system on its closed circuit television station (Channel 20). This message will run continuously. o A brochure will be developed which describes the ordinance, what is required and why. This brochure will be available in the Neighborhood Services department and will be available at all department exhibits. o A webpage regarding the ordinance will be created and will be posted on the City's website. 37 o A billboard will be developed and will be placed at strategic locations throughout the City. o Neighborhood Services Code Enforcement officers will be given a supply of these brochures so that they may leave them at the locations where ordinance violations are cited or warned against. Evaluation Responses to the City of Corpus Christi Storm Water Survey which will take place approximately every five years will be compared. Additionally, the number of warnings or citations for violation of the ordinance will be compared from year to year. 38 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 21, 2017 TO: Margie C. Rose, City Manager FROM: Dan Grimsbo, Interim Executive Director of Utilities DanG c(�cctexas.com (361) 826-1718 Kim Baker, Assistant Director of Financial Services, Purchasing Division KimB2(c�cctexas.com (361) 826-3169 Supply Agreement for Ferrous Sulfate for Wastewater Plants CAPTION: Motion authorizing City Manager, or designee, to execute a supply agreement with Pencco, Inc., of San Felipe, Texas for the purchase of Ferrous Sulfate ("chemical") in response to Request for Bid No. 1020 based on the lowest, responsive, responsible bid for a total amount not to exceed $290,250.00, with an estimated expenditure of $145,125.00 in FY2016-2017 and funded by the Wastewater Fund. The term of the agreement is for one year with an option to extend for up to four additional one year periods, subject to the sole discretion of the City. PURPOSE: This item is to approve a supply agreement for Ferrous Sulfate for Wastewater Plants. BACKGROUND AND FINDINGS: Ferrous Sulfate is used for industrial and sanitary wastewater treatment applications, due to its high efficiency, effectiveness in clarification, and utility as a sludge dewatering agent. However, the chemical is primarily used for odor control at the lift stations and throughout the collection system. In January of 2017, the Purchasing Division conducted a competitive Request for Bid process to obtain bids for a new contract. The City received one responsive, responsible bid and one no bid, out of 38 notifications issued, and is recommending the award to the lowest, responsive, responsible bidder, Pencco, Inc., of San Felipe, Texas. ALTERNATIVES: None 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: Utilities Department — Wastewater FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $2,607,381.03 $145,125.00 $2,752,506.03 Encumbered / Expended Amount $1,721,185.60 $0.00 $1,721,185.60 This item $145,125.00 $145,125.00 $290,250.00 BALANCE $741,070.43 $0.00 $741,070.43 Fund(s): Wastewater Comments: The initial contract term total is $290,250.00, of which $145,125.00 will be funded in FY2016-17. The total estimated contract value will be $1,451,250.00 if all options years are executed. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Supply Agreement Bid Tabulation CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: Lydia Juarez ITEM DESCRIPTION Unit 1 Ferrous Sulfate Gallon 2 Add New Tank Each QTY 300,000 1 3 Move a tank as Directed by the City to a new location (Within a 25 - mile radius) Each 1 4 Turn Ferrous Pump OFF and ON — (One Event is defined as: Bidder turning all requested OFF & subsequently turning all back ON). Event 6 5 Change feed rate at any location selected by City on weekend. Each 6 6 Testing and Report for Ferrous Sulfate Product Specifications nominal concentration(monthly) Each 12 7 Testing and Report for heavy metals (Quarterly) Each 4 8 Unloading Delays Each 20 TOTAL BID TABULATION BID EVENT NO. 1020 Ferrous Sulfate Supply for the Wastewater Plants Pencco PO Box 600, San Felipe, TX 77473 *UNIVAR 8201 S. 212th, Kent, WA 98032 UNIT EXTENDED UNIT EXTENDED PRICE PRICE PRICE PRICE $0.78 $234,900.00 $0.00 $29,750.00 $29,750.00 $0.00 $4,200.00 $4,200.00 $0.00 $750.00 $4,500.00 $0.00 $400.00 $2,400.00 $0.00 $850.00 $10,200.00 $0.00 $675.00 $2,700.00 $0.00 $80.00 $1,600.00 $0.00 $290,250.00 No Bid NOTE: * Bidder submitting a letter of interest before the closing of bid however, was not able to meet requirements at this time and provided a no bid response. SUPPLY AGREEMENT NO. 1020 FERROUS SULFATE SUPPLY AGREEMENT FOR WASTEWATER PLANTS THIS Ferrous Sulfate Supply Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home -rule municipal corporation ("City") and Pencco, Inc. ("Supplier"), effective for all purposes upon execution by the City Manager or the City Manager's designee ("City Manager"). WHEREAS, Supplier has bid to provide Ferrous Sulfate in response to Request for Bid No. 1020 ("RFB"), which RFB includes the required scope of work and all specifications and which RFB and the Supplier's bid response are incorporated by reference in this Agreement as Exhibits 1 and 2, respectively, as if each were fully set out here in its entirety. NOW, THEREFORE, City and Supplier agree as follows: 1. Scope. Supplier will provide Ferrous Sulfate in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. "Goods," "products", and "supplies", as used in this Agreement, refer to and have the same meaning. In accordance with Attachment A, Supplier will also provide the required tanks for the Ferrous Sulfate and, in the event an additional tank needs to be installed at any time, the City and Supplier will mutually identify and agree on the gallon capacity of the required tank prior to installation. 2. Term. This Agreement is for 12 months. This Agreement includes an option to extend the term for up to four additional 12 -month periods ("Option Period"), provided, the parties do so prior to expiration of the original term or the then -current Option Period. The decision to exercise the option to extend the term of this Agreement is, at all times, within the sole discretion of the City and is conditioned upon the prior written agreement of the Supplier and the City Manager. 3. Compensation and Payment. The total value of this Agreement is not to exceed $290,250.00, subject to approved extensions and changes. Payment will be made for goods delivered and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. All pricing must be in accordance with the attached Bid/Pricing Schedule, as shown in Attachment B, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. Page 1 of 7 4. 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. The City's Contract Administrator for this Agreement is as follows: Name: Joanna Moreno Department: Utilities Department Phone: 361-826-1649 Email: JoannaM@cctexas.com 5. Insurance. Before performance can begin under this Agreement, the Supplier must deliver a certificate of insurance ("COI"), as proof of the required insurance coverages, to the City's Risk Manager and the Contract Administrator. Additionally, the COI must state that the City will be given at least 30 days' advance written notice of cancellation, material change in coverage, 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 10 days of the City Manager's written request. Insurance requirements are as stated in Attachment C, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety. 6. Purchase Release Order. For multiple -release purchases of products to be provided by the Supplier over a period of time, the City will exercise its right to specify time, place and quantity of products to be delivered in the following manner: any City department or division may send to Supplier a purchase release order signed by an authorized agent of the department or division. The purchase release order must refer to this Agreement, and products will remain with the Supplier until such time as the products are delivered and accepted by the City. 7. Inspection and Acceptance. Any products that are delivered but not accepted by the City must be corrected or replaced immediately at no charge to the City. If immediate correction or replacement at no charge cannot be made by the Supplier, a replacement product may be bought by the City on the open market and any costs incurred, including additional costs over the item's bid price, must be paid by the Supplier within 30 days of receipt of City's invoice. 8. Warranty. The Supplier warrants that all products supplied under this Agreement are new, quality items that are free from defects, fit for their intended purpose, and of good material and workmanship. The Supplier warrants that it has clear title to the products and that the products are free Page 2 of 7 of liens or encumbrances. In addition, the products purchased under this Agreement shall be warranted by the Supplier or, if indicated in Attachment D by the manufacturer, for the period stated in Attachment D. Attachment D is attached to this Agreement and is incorporated by reference into this Agreement as if fully set out here in its entirety. 9. Quality/Quantity Adjustments. Any quantities indicated on the Bid/Pricing Schedule are estimates only and do not obligate the City to order or accept more than the City's actual requirements nor do the estimates restrict the City from ordering less than its actual needs during the term of the Agreement and including any Option Period. Substitutions and deviations from the City's product requirements or specifications are prohibited without the prior written approval of the Contract Administrator 10. Non -Appropriation. The continuation of this Agreement after the close of any fiscal year of the City, which fiscal year ends on September 30th annually, is subject to appropriations and budget approval specifically covering this Agreement as an expenditure in said budget, and it is within the sole discretion of the City's City Council to determine whether or not to fund this Agreement. The City does not represent that this budget item will be adopted, as said determination is within the City Council's sole discretion when adopting each budget. 11. Independent Contractor. Supplier will perform the work required by this Agreement as an independent contractor and will furnish such products in its own manner and method, and under no circumstances or conditions will any agent, servant or employee of the Supplier be considered an employee of the City. 12. Subcontractors. Supplier may use subcontractors in connection with the work performed under this Agreement. When using subcontractors, however, the Supplier must obtain prior written approval from the Contract Administrator if the subcontractors were not named at the time of bid. In using subcontractors, the Supplier is responsible for all their acts and omissions to the same extent as if the subcontractor and its employees were employees of the Supplier. All requirements set forth as part of this Agreement, including the necessity of providing a COI in advance to the City, are applicable to all subcontractors and their employees to the same extent as if the Supplier and its employees had performed the work. 13. Amendments. This Agreement may be amended or modified only by written change order signed by both parties. Change orders may be used to modify quantities as deemed necessary by the City. Page 3 of 7 14. Waiver. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 15. Taxes. The Supplier covenants to pay payroll taxes, Medicare taxes, FICA taxes, unemployment taxes and all other related taxes. Upon request, the City Manager shall be provided proof of payment of these taxes within 15 days of such request. 16. Notice. Any notice required under this Agreement must be given by fax, hand delivery, or certified mail, postage prepaid, and is deemed received on the day faxed or hand -delivered or on the third day after postmark if sent by certified mail. Notice must be sent as follows: IF TO CITY: City of Corpus Christi Attn: Joanna Moreno Contracts/Funds Administrator, Utilities Department 2726 Holly Rd., Corpus Christi, TX 78415 Fax: 361-826-1715 IF TO SUPPLIER: Pencco, Inc. Attn: Sarah Duff Inside Sales Manager P. O. Box 600 San Felipe, TX 77473 Fax: 979-885-3208 17. SUPPLIER AGREES TO 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 WHATSOEVER ON ACCOUNT OF PERSONAL INJURIES (INCLUDING DEATH AND WORKERS' COMPENSATION CLAIMS), PROPERTY LOSS OR DAMAGE, OR ANY OTHER KIND OF INJURY, LOSS, OR 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 AGREEEMENT OR THE PERFORMANCE OF THIS AGREEMENT, REGARDLESS OF WHETHER THE INJURIES, DEATH OR DAMAGES ARE CAUSED OR ARE CLAIMED Page 4 of 7 TO BE CAUSED BY THE CONCURRENT OR CONTRIBUTORY NEGLIGENCE OF INDEMNITEES, BUT NOT IF BY THE SOLE NEGLIGENCE OF INDEMNITEES UNMIXED WITH THE FAULT OF ANY OTHER PERSON. SUPPLIER MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER COSTS AND EXPENSES OF ANY KIND ARISING FROM ANY SAID LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, SUITS, OR ACTIONS. THE INDEMNIFICATION OBLIGATIONS OF SUPPLIER UNDER THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 18. Termination. (A) The City Manager may terminate this Agreement for Supplier's failure to perform the work specified in this Agreement or to keep any required insurance policies in force during the entire term of this Agreement. The Contract Administrator must give the Supplier written notice of the breach and set out a reasonable opportunity to cure. If the Supplier has not cured within the cure period, the City Manager may terminate this Agreement immediately thereafter. (B) Alternatively, the City Manager may terminate this Agreement for convenience upon 30 days advance written notice to the Supplier. The City Manager may also terminate this Agreement upon 24 hours written notice to the Supplier for failure to pay or provide proof of payment of taxes as set out in this Agreement. 19. Assignment. No assignment of this Agreement by the Supplier, or of any right or interest contained herein, is effective unless the City Manager first gives written consent to such assignment. The performance of this Agreement by the Supplier is of the essence of this Agreement, and the City Manager's right to withhold consent to such assignment is within the sole discretion of the City Manager on any ground whatsoever. 20. Severability. Each provision of this Agreement is considered to be severable and, if, for any reason, any provision or part of this Agreement is determined to be invalid and contrary to applicable law, such invalidity shall not impair the operation of nor affect those portions of this Agreement Page 5 of 7 that are valid, but this Agreement shall be construed and enforced in all respects as if the invalid or unenforceable provision or part had been omitted. 21. Order of Precedence. In the event of any conflicts or inconsistencies between this Agreement, its attachments, and exhibits, such conflicts and inconsistencies will be resolved by reference to the documents in the following order of priority: A. this Agreement and its attachments B. the bid solicitation document, including addenda (Exhibit 1) C. the Supplier's bid response (Exhibit 2) 22. Certificate of Interested Parties. Supplier agrees to comply with Texas Government Code Section 2252.908, as it may be amended, and to complete Form 1295 "Certificate of Interested Parties" as part of this Agreement. 23. Governing Law. This Agreement is subject to all federal, State, and local laws, rules, and regulations. The applicable law for any legal disputes arising out of this Agreement is the law of the State of Texas, and such form and venue for such disputes is the appropriate district, county, or justice court in and for Nueces County, Texas. 24. Entire Agreement. This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement and supersedes all prior negotiations, arrangements, agreements and understandings, either oral or written, between the parties. (SIGNATURE PAGE FOLLOWS) Page 6 of 7 SUPPLIER Pencco, Inc. Signature: _ 2A a A Printed Name: Sarah Duffy Title: Bid Sec. Date: 1/30/17 CITY OF CORPUS CHRISTI Signature: Printed Name: Title: Date: Attached and Incorporated by Reference: Attachment A: Scope of Work Attachment B: Bid/Pricing Schedule Attachment C: Insurance Requirements Attachment D: Warranty Requirements Incorporated by Reference Only: Exhibit 1: RFB No. 1020 Exhibit 2: Supplier's Bid Response City of Corpus Christi Supply Agreement Standard Form Approved as to Legal Form 7/1 /16 Page 7 of 7 Attachment A: Scope of Work 1.1 General Requirements/Background Information A. The Supplier shall provide delivery of Aqueous Solution of Ferrous Sulfite to the City of Corpus Christi at locations listed in this specification. Ferrous Sulfite will be utilized for odor control at wastewater plants. 1.2 Scope of work A. Supply for delivery of Aqueous Solution, as per specifications of Ferrous Sulfate, FeSO4. B. Storage Tanks: 1. Supplier shall provide and install molded, seamless, high density, cross linked, polyolefin tanks, UV resistant or treated fiberglass with a minimum capacity of 4,000 gallons and a maximum capacity of 10,000 gallons, and any necessary related equipment at the delivery locations. 2. The selected Supplier will ensure that there will be no disruptions/interruptions of the current service of Ferrous Sulfite operations when installing new tanks, and will be required to reach out to the current Supplier to develop a plan for a smooth change out of tanks and services. This plan must be submitted and pre -approved by the City Contractor Administrator or Designee prior to any tank removal/installation work commencing. 3. At the end of the contract or at the end of any extension thereof, the Supplier shall remove all storage tanks and chemical pump systems from all locations within two weeks of notification by the City to do so. 4. Each tank shall have one secured man way; and one "U" vent with screened opening. 5. All the tanks shall have a level gauge P.V.C. sight -glass, and maintain P.V.C. sight glass to be readable. 6. Each tank will have filler line located in the top of the tank terminating with a ball valve and cam lock male coupling with a P.V.C. cap. 7. Tanks shall be installed above ground. Page 1 of 8 8. No other type of tank shall be acceptable, unless approved by the Contract Administrator or designee. 9. The Supplier shall conduct safety inspections of the tanks and related equipment prior to initial use of the tanks, and during the life of the contract period according to industry standards and OSHA requirements. 10.Supplier shall provide and install storage containers capable of receiving and storing liquid ferrous sulfate at locations specified by the City. C. Chemical Pump System: 1. One complete chemical pump system shall be supplied for each storage tank. This chemical pump system shall consist of chemical injection pumps with timers and variable feed rates. Both pumps and controls shall be enclosed in a NEMA 4X fiberglass, chemical resistant enclosure. 2. Supplier shall provide and maintain an alternate means of measuring the liquid Ferrous Sulfate delivered to each site in order to verify the quantities listed on the delivery weight tickets. Discrepancies between the weight tickets and the measuring shall be limited to +- 5%. In the case of any discrepancies greater than this limit, the City shall pay for the lesser amount. The metering system shall be subject to approval by the Contract Administrator and shall apply to all deliveries at all sites. Invoices for deliveries which do not have measurement readings verifying the weight tickets will not be paid. 3. The number of tanks and locations and the quantity are subject to change as the need may arise. In case of a location change or if additional tanks are necessary, the supplier shall be ready to move the equipment with fifteen (15) days' notice from the Contract Administrator. 4. The Supplier shall be responsible for the maintenance of all storage tanks, equipment and respective chemical pump systems. Each pumping location shall be serviced as required during continuous operation and as directed by the Contract Administrator. 5. On occasion, it will be requested to cycle a Ferrous Pump off and on due to a broken line or problems at a Lift Station. 6. The Contract Administrator may request for the feed rate to be adjusted, as needed. Page 2 of 8 D. Product Specification: 1. The chemical supplied shall be a liquid Ferrous Sulfate capable of removing hydrogen sulfide, phosphorus, and act as a sludge conditioner; shall contain not less than 0.5 pounds of soluble ferrous iron per gallon, nor more than 0.8 percent of free sulfuric acid expressed as H2SO4; shall be free of organic sulfides or other objectionable odor producing matter. Supplied as follows: Nominal Centration: • Soluble Ferrous Iron % 5.1 or more • Lb./gal of solution 0.5 • MgSO4 % less than 1.0 • TiOSO4 % less than 2.2 • MnSO4% less than 0.3 • Insoluble % less than 2.0 • Free acid as H2SO4, % less than 0.8 • Trace Elements % less than 0.015 Physical Properties: • Specific Gravity 1.17 (9.76 Ib/gal) • Freezing Pt. 28 degrees F (-2 degrees C) • PH 2.0 to 2.5 Heavy Metals: In addition, the chemical shall not contain the following heavy metals (mg/L) in limits which exceed the maximums shown (Samples are to be tested for heavy metals each quarter for the duration of the contract period) and shall include items listed below (In aggregate total of all heavy metals must not exceed 150 mg/I). A report shall be submitted to the Contract Administrator for all quarterly testing: • Arsenic 3.0 • Cadmium 1.5 • Chromium, total 70 • Chromium, hexavalent 0.01 • Copper 10 • Lead 15 • Mercury 0.02 • Nickel 40 • Zinc 50.0 Page 3 of 8 2. Reports shall be submitted during the length of the contract as follows: • Monthly - Items under "Nominal Concentration"; and 1 and 3 listed under "Physical Properties". • Quarterly - Test for heavy metals listed under "Heavy Metals" in this Specification. 1.3 Deliveries: A. Delivered and unloaded into bulk storage tanks located in areas designated by the Contract Administrator. Delivering and off-loading equipment must be in accordance with OSHA and industry standards. B. Delivery Requirements: 1. The Liquid Ferrous Sulfate will be delivered in minimum 4,000 gallons and maximum 6,000 -gallon tank truck loads. 2. Deliveries shall be made between 8:00 a.m. to 4:00 p.m., Monday through Friday excluding holidays unless otherwise instructed by Contract Administrator or designee. Contract Administrator or designee may allow weekend deliveries from 8:00 am. to 12:00 pm. with prior arrangements. The supplier shall notify the Contract Administrator or designee by email and telephone at least 24 hours prior to delivery of product so that a city representative may be on site when the delivery is made. Shipments arriving at times other than those above cannot be off-loaded until the specified unloading times, unless prior arrangements have been made with the Contract Administrator or designee. 3. Deliveries shall be made in Supplier's company trucks and driven by a company driver, which shall have the DOT permit and other State/Federal licenses, if applicable due to liabilities involved in case of accidental spills or other related problems. In the event Supplier wishes to use a properly licensed and permitted commercial carrier, the Contract Administrator must give prior written approval. All DOT permits and State/Federal licenses for the proposed commercial carrier shall be submitted with the request and any approval shall be limited to the commercial carrier whose DOT permit and State/Federal licenses are submitted. 4. The City will not be responsible for any demurrage charges which result from deliveries arriving at any other than the specified time, or from transporters' failure to have all required off-loading equipment present and operating when off- loading is scheduled to begin. A City Representative must be present and sign/date delivery ticket(s); any tickets presented to the City for payment without City Representative signature and date may be denied for payment (All tickets must be original- no faxes accepted). Any unloading delays, which are directly Page 4 of 8 attributable to the City, will be paid for at the unit price bid for "Unloading Delays", rounded to the nearest quarter hour. This amount shall be included with the invoice for payment for that particular load of chemical. The frequency of deliveries is dependent upon the requirement of keeping an adequate inventory of Ferrous Sulfate in all tanks for the proper technical control of Wastewater Hydrogen Sulfides. Replenishment will be on an as needed basis. 5. The number of chemical injection systems that the City may require and their locations are subject to change as the need may arise. Upon contract award, the Supplier shall commence installation of required chemical injection facilities within four weeks of "Notice to Proceed" and complete installation within six weeks of "Notice to Proceed". 6. Each location shall be serviced a minimum of once every two weeks, or more often if deemed necessary by the Contract Administrator or designee. 7. The Supplier shall notify the City of all spills and the Supplier shall also be responsible for proper cleanup and disposal of any spills and all required regulatory reporting of such spills. 8. After initial delivery, liquid ferrous sulfate deliveries shall be continuous to maintain a stable feed supply and ensure that dosing is not interrupted. The Supplier is responsible for scheduling deliveries to point of destination within 24 hours of request for delivery. 9. The Supplier shall have full responsibility to fill and maintain adequate levels of liquid ferrous sulfate in all tanks to keep all pumps running properly at the full range of the pump flow specifications. C. Delivery Locations: City Location Address Current Tank Capacity Wooldridge Lift Station 6610 Wooldridge Rd. (East of Airline Rd. 6000 Fire Station #7 3750 S. Staples (Staples & Doddridge) 6000 Corpus Christi Southside Football League 4700 McArdle (Near the Armory) 6000 Clarkwood North 2000 Clarkwood (Clarkwood & Leopard) 6500 Everhart/Staples Lift Station 780 Everhart 5400 Sacky Lift Station 3200 Sacky Dr. (Off Kostoryz Rd.) 6000 Turtle Cove Lift Station 9547 Blue Jay Street 4000 Arcadia Lift Station 2221 Block of S. Staples (Staples & Kosar) 5000 Page 5 of 8 McBride Lift Station 1200 McBride Lane 5000 Morgan Lift Station 1400 Twelfth St. (Morgan & 12th) 6200 Port & Pearse Lift Station 2306 Pearse Drive (Port & Pearse) 5000 Fire Station Training Center 209 S. Carancahua/Kinney No tank, however want the option Lift Station #5 6528 S. Staples (Saratoga & S. Staples) 5000 Weber's Glenn Lift Station 4051 Aaron Drive 5000 Sharpsburg Lift Station 44412 Sharpsburg RD. 6000 Cimmaron/Yorktown Lift Station 7501 Cimmaron 6000 Note: Tank capacities are listed for information only. D. Special Instructions: 1. A Quarterly meeting shall be held at the City's Wastewater Department located at 2726 Holly Road, Bldg. 8B to discuss all reports, data, charges, effectiveness and recommendations during the course of this contract. Any cost associated to attend this quarterly meeting shall be included as part of this contract or no additional cost will be allowed. Management representative from the Supplier shall be present as directed by the City. 2. During different seasons of the year, the City shall have the right to direct the Supplier to completely shut down the odor control system City Wide (example: during wet weather or extended cold weather in winter). All testing will continue as outlined in the scope. E. Other Requirements: 1. Product to meet AWWA specifications B402-00 for Ferrous Sulfate and the specifications contained herein, with no substitutions. 2. Liquid Ferrous Sulfate shall be produced exclusively from a commercial grade Ferrous Sulfate. 3. The Supplier shall collect one sample of liquid ferrous sulfate from one tank per month as designated by the Contract Administrator. At the Supplier's expense, the collected sample shall be analyzed by a certified independent laboratory approved by the City for compliance with the specifications. A report from the laboratory shall be forwarded to the Contract Administrator or designee as soon as the tests are completed. Failure to meet specifications may result in forfeit of contract. 4. Product exceeding limits for heavy metals must be corrected before next quarterly Test. The City reserves the right to have any non-compliant product remove or order addition testing. City also, reserves the right to terminate the Page 6 of 8 contract, if two consecutive quarterly tests do not meet specification requirements. 5. The Supplier shall submit a Bi -weekly usage report to the Contract Administrator or designee. This report shall include the following minimum information for each delivery site: delivery site name and address, quantities (gallons) delivered, year to date cumulative total in gallons delivered, total gallons used for the week, average daily use for the week in gallons, average daily use for the year, to date, in gallons and maintenance information (i.e. scheduled and unscheduled maintenance). All results shall be submitted on the City's spreadsheet template, which will be supplied by the Contract Administrator or Designee. 6. The results of all required testing will be furnished to the Contract Administrator or designee for approval. Any product not meeting the minimum specifications shall be removed by the Supplier and credit given to the City. The Supplier will pay for all costs related to testing. If specifications are not adhered to, no further deliveries will occur until product meets all City specifications. The Supplier will provide on- site maintenance within 24 hours of request, upon request by the City Work Coordinator(s). 7. Prior to initial use of the storage tanks and chemical pump system by City, and annually thereafter, Supplier shall conduct training seminars for City's operating personnel on application and control of the Liquid Ferrous Sulfate and shall at a minimum include the following: • Basic chemical properties of the Liquid Ferrous Sulfate. • Safety training. • Equipment operation/set-up • Safety Data Sheet 8. The Supplier shall provide proper labeling of all product storage tanks, in compliance with local, State and Federal regulations. 9. The Supplier shall bear the responsibility for the safe delivery and storage of the product into the storage tanks. The Supplier shall be responsible for proper cleanup, disposal of any spills, and any regulatory agency actions, and reporting of spills to the required regulatory agencies. 10. The City reserves the right at City's expense to perform additional testing for each incoming load and the Supplier shall provide required samples at the tank sites to an independent third party laboratory retained and directed by the City. Page 7 of 8 1 1. Supplier shall be required to install a containment berm or structure around each tank for spill preventions and containment purposes. Details for each site shall be submitted to the Contract Administrator or designee for review and approval. 12.Supplier shall affix identification of the Hazardous Material Signs, meeting the NFPA No. 704M requirements on all tanks supplied. 13.Supplier will be responsible for any excessive usage of product resulting from malfunction of metering pump. 14.Supplier will be responsible to supply all Personal Protective Equipment (PPE) for their employees to ensure proper safety during deliveries or when working on equipment. 1.4 Work Site and Conditions A. The work shall be performed at the locations provided in this document. B. The Supplier must notify a City Representative when on site for delivery, maintenance or other work. C. All PPE must be supplied and used by the Supplier and their employees. D. If damages to city equipment and/or a contract employee is injured when onsite a city representative must be notified immediately. 1.5 Supplier Quality Control and Superintendence A. The Supplier shall establish and maintain a complete Quality Control Program that is acceptable to the Contract Administrator to assure that the requirements of the Contract are provided as specified. The Supplier will also provide supervision of the work to insure it complies with the contract requirements. Page 8 of 8 Date: 1/30/17 Attachment B: Bid/Pricing Schedule CITY OF CORPUS CHRISTI BID FORM PURCHASING DIVISION FB No. 1020. Ferrous Sulfate Authorized Bidder: Pencco, Inc. Signature: PAGE 1 OF 2 Sarah Duffy, Bid Sec.I/ 1. Refer to "Instructions to Bidders" and Contract Terms and Conditions before completing bid. 2. Quote your best price for each item. 3. In submitting this bid, Bidder certifies that: a. the prices in this bid have been arrived at independently, without consultation, communication, or agreement with any other Bidder or competitor, for the purpose of restricting competition with regard to prices; b. Bidder is an Equal Opportunity Employer; and the Disclosure of Interest information on file with City's purchasing office, pursuant to the Code of Ordinances, is current and true. b. Bidder is current with all taxes due and company is in good standing with all required governmental agencies. c. Bidder acknowledges receipt and review of all addenda for this RFB. d. This includes tanks and supporting systems as per the specification. Item Description UNIT QTY Unit Price Total Price 1 Ferrous Sulfate Gallon 300,000 $0.783 $234,900.00 2 Add New Tank Each 1 $29,750.00 $29,750.00 3 4 Move a tank as Directed by the City to a new location (Within a 25 -mile radius) fuin 1-emous Pump U-1- and ON - (Cne Event is defined as: Bidder turning all requested OFF & subsequently turning all back ONI. Each kveill 1 6 $4,200.00 $750.00 $4,200.00 $4,500.00 RFB Template 10.10.16 Page 25 of 24 5 Change feed rate at any location selected by City on weekend. Each 6 $400.00 $2,400.00 6 Testing and Report for Each 12 $850.00 $10,200.00 Ferrous Sulfate Product Specifications nominal concentration (monthly) 7 Testing and Report for heavy metals (Quarterly) Each 4 $675.00 $2,700.00 8 Unloadin • Dela s Hour 20 $80.00 $1,600.00 Total $290,250.00 Attachment C: Insurance Requirement SUPPLIER'S LIABILITY INSURANCE A. Supplier must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Supplier must not allow any subcontractor, to commence work until all similar insurance required of the subcontractor has been obtained. B. Supplier must furnish to the City's Risk Manager and Contract Administrator one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City's Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation endorsement is required on all applicable policies. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -day advance written notice of cancellation, non -renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Commercial Broad Form 2. Premises — Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury $1,000,000 Per Occurrence $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2. Hired and Non -Owned 3. Rented/Leased $1,000,000 Combined Single Limit WORKERS'S COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employer's Liability Statutory and complies with Part 11 of this Exhibit. $500,000/$500,000/$500,000 POLLUTION LIABILITY (Including Cleanup and remediation) $1,000,000 Per Incident Limit $1,000,000 Aggregate C. In the event of accidents of any kind related to this contract, Supplier must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II. ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Supplier must obtain workers' compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers' Compensation. An All States Endorsement shall be required if Supplier is not domiciled in the State of Texas. B. Supplier shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Supplier's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. C. Supplier shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Supplier agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; • Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non- renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non -renewal, material change or termination of coverage, Supplier shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Supplier's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. F. In addition to any other remedies the City may have upon Supplier's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Supplier to stop work hereunder, and/or withhold any payment(s) which become due to Supplier hereunder until Supplier demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Supplier may be held responsible for payments of damages to persons or property resulting from Supplier's or its subcontractor's performance of the work covered under this contract. It is agreed that Supplier's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. I It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2017 Insurance Requirements Utilities Delivery of Ferrous Sulfate and Services to Include Use of Tanks 03/13/17 sw Risk Management Attachment D: Warranty Requirements No warranty requirements are needed for the supply agreement Form St provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-175993 Date Filed: 03/08/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Pencco, Inc. San Felipe, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. RFB 1020 Supply of Ferrous Sulfate 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. X 6 AFFIDAVIT I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. /} �/{ ii .USS/ I t i 41 + + + " JENNIFER LYNN MATURA ") Notary Public, State of Texas _• !''' = •• E Notary ID # 12934467-2 .: 1\ :. r My Commission Expires .°4' March 13, 2421 ► (Th l� r Signature of authori a eta of contracting business entity -1- 6 this the day of 'Mar Ct r, + AFFIX Sworn 20 NOTARY STAMP / SEAL ABOVE to and subscribed before me, by the said 5 -link NA I -7 , to certify which, witness my hand and seal of office. I -re (`, Printed name of officer administering f cr u 9,Jain oath Title of officer admintAtering oath ^ S'+nature of officer administering oath Form St provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 AflUTAM 1L,1YJC1331111143t z‘x,31" in 9162 ,aii-Jugyl6ioIi fi_ c-ca4te:t n i, visrow e9iiqx3 noizaimmol yM isot EI tblsM AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 21, 2017 TO: Margie C. Rose, City Manager FROM: Jim Davis, Director of Fleet Maintenance jimd@cctexas.com (361) 826-1909 Dan Grimsbo, Interim Exective Director of Utilities DanG@cctexas.com (361) 826-1718 Kim Baker, Assistant Director of Financial Services -Purchasing Division KimB2@cctexas.com (361) 826-3169 Lease -Purchase of Two Vactor and One Vacall (Body and Chassis) Combination Sewer Trucks for Wastewater CAPTION: Motion authorizing the City Manager, or designee, to lease -purchase two Vactor combination sewer trucks and a Vacall chassis for combination sewer truck (for Vacall body listed below) from Houston Freightliner, of Houston, Texas, based on the cooperative purchasing agreement with Houston -Galveston Area Council, and one Vacall body for a combination sewer truck from Waukesha -Pearce Industries, Inc., of Houston, Texas, based on the cooperative purchasing agreement with Texas Local Government Purchasing Cooperative, dba BuyBoard; for a total amount not to exceed $1,167,613.39, with an estimated expenditure of $77,774.20 in FY2016-2017. PURPOSE: This item is to approve the lease -purchase of two Vactor and one Vacall combination sewer trucks for the Wastewater Collection System crew in the Utilities Department. BACKGROUND AND FINDINGS: This lease -purchase is for three combination sewer trucks to be replaced and auctioned. Two of the three trucks are the Vactor combination sewer trucks and will be leased - purchased from Houston Freightliner. The first truck was purchased in 2005 and has 11,000 hours of service. At this point, the life to date maintenance cost equals the original service cost of $230,000.00. Since 2005, purchase prices have gone up. The second truck was purchased in 2008 and has 10,300 hours of service. Life to date maintenance costs are $192,700.00. Recently maintenance costs have started to ramp up for this unit. The third truck is the Vacall combination sewer truck, and is a split lease -purchase between two vendors. The chassis will be purchased from Houston Freightliner. The body for the Vacall will be purchased from Waukesha -Pearce Industries. Waukesha -Pearce will assemble the chassis and body for a final product of one combination sewer truck. The third replaced sewer truck was purchased in 2009 and has 10,600 hours of service. Life to date maintenance costs are $205,000.00. It is critical to the operations of the Wastewater Division for these combination sewer trucks to be available and in reliable performing conditions 24 hours a day, year-round and generally last about six years before maintenance costs start increasing. We have operated these trucks well past that point. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Financing for the lease -purchase of the two Vactor and one Vacall combination sewer trucks are based on a sixty -month term with an estimated interest rate of 3.25% for an annual estimated payment of $223,322.60. The total estimated cost over the five-year period, including principal of $1,075,417.81 and interest of $91,195.58 is $1,166,613.39. A not to exceed tolerance of $1,000.00 has been added to the interest amount to allow for the possible fluctuation of the interest rate for a total not to exceed of $1,167,613.39. Total Lease -Purchase from Houston Freightliner: Total Lease -Purchase from Waukesha -Pearce Industries: Total Allowable Interest for Lease: Total Allowable for Interest Fluctuation: Grand Total: $824,430.00 $250,987.81 $91,195.58 $1,000.00 $1,167,613.39 CONFORMITY TO CITY POLICY: This lease -purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Utilities FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $131,940.91 $1,089,839.19 $1,221,780.10 Encumbered / Expended Amount $35,928.92 $0.00 $35,928.92 This item $77,774.20 $1,089,839.19 $1,167,613.39 BALANCE $18,237.79 $0.00 $18,237.79 Fund(s): Wastewater Comments: Delivery of the two Vactor and one Vacall combination sewer trucks are scheduled during FY2016-2017. The annual estimated payment for this lease -purchase is $233,322.60 of which $77,774.20 is budgeted in FY2016-2017 by the Utilities Department for four months of payments. The remaining lease -purchase payments will be requested in future years during the normal budget process. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: ROBERTA ORTIZ PRICE SHEET VACTOR and VACALL SEWER TRUCKS H -GAC HT06-16 BUYBOARD 515-16 ITEM DESCRIPTION QTY. UNIT Houston Freightliner Houston, Texas Waukesha -Pearce Industries, Inc. Houston, Texas UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE 2018 Freightliner 114SD vactor sewer 1. truck 2 EA $358,763.00 $717,526.00 2018 Freightliner 114SD vacall sewer 2 chassis 1 EA $105,404.00 $105,404.00 3 H -GAC Order Processing Charge 1 EA $1,500.00 $1,500.00 4 Vacall AJV 1215 body for a sewer truck 1 EA $250,987.81 $250,987.81 Leased -Purchase Cost: Total Lease -Purchase Cost: $1,075,417.81 Total Estimated Allowable Interest for Lease: $92,195.58 Grand Total: $1,167,613.39 $824,430.00 $250,987.81 Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos. 1- 4 and 6 if there are interested parties. Complete Nos. 1, 2, 3, 5, and 6 if there are no interested parties. OFFICE USE ONLY CERTIFICATION OF FILING Certificate Number: 2017-159523 Date Filed: 01/30/2017 Date Acknowledged: 1 Name of business entity filing form, and the city, state and country of the business entity's place of business. Houston Freightliner, Inc Houston, TX United States 2 Name of governmental entity or state agency that is a party to the contract for which the form is being filed. City of Corpus Christi 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract, and provide a description of the services, goods, or other property to be provided under the contract. 40432 2018 Freightliner M2-112 4 Name of Interested Party City, State, Country (place of business) Nature of interest (check applicable) Controlling Intermediary 5 Check only if there is NO Interested Party. 0 6 AFFIX Sworn 20 I swear, or affirm, under penalty of perjury, that the above disclosure is true and correct. a+ `"� '., p.1' DIANA SALAZAR ` rF. Notary Public. State of !ems ', MY Commission Exvires 6 ` ... ..;tz : ,�••`' October 19, 2019 ct NOTARY STAMP / SEAL ABOVE to and subscribed before me, bythe said 17 . to certify which, witness my hand and Signature of authorized agent of con : cling business entity �(h r' 'cu'"rilitv 3D , , this the day of Wilf seal of office. pct - a 2 r q Z_ae ignature of officer administering oath Printed name of officer administering oath Title of officer adrffinistering oath Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 21, 2017 TO: Margie C. Rose, City Manager FROM: Jim Davis, Director of Fleet Maintenance iimdcctexas.com (361) 826-1909 Mike Markle, Police Chief M ikeMa(c�cctexas.com 361-886-2601 Kim Baker, Assistant Director of Financial Services -Purchasing Division KimB2 c(�cctexas.com (361) 826-3169 Purchase of Police Vehicles and Upfitting Equipment CAPTION: Motion approving the purchase of 23 police vehicles from Caldwell Country Ford dba Rockdale Country Ford, from Caldwell, Texas and the upfitting equipment from Cap Fleet Upfitters from Temple, Texas, based on the cooperative purchasing agreement with Texas Local Government Purchasing Cooperative, dba BuyBoard for the total amount not to exceed $1,034,360.16. Funds have been approved for FY2016-2017. PURPOSE: This item is to approve the purchase of 23 police vehicles and upfitting equipment for the Police Department. BACKGROUND AND FINDINGS: The Police Department currently has a requirement for 74 marked patrol units backed up by 18 spare units to fill in when one of the 74 units is being serviced or repaired. Of these 92 total vehicles, 31 are at or approaching the end of their service lives of 4 years or 120,000 miles). This is normal in that one third of the active Police marked unit fleet is normally replaced annually. The 23 units to be purchased are the first of a two-stage buy process, and are replacements for vehicle that will be auctioned. The second -stage purchase will occur as soon as adequate funding is identified to complete the purchase. It is anticipated the second stage will consist of approximately 12 marked units. Due to the increased use of Ford Utility Interceptors, it is necessary to purchase 37 upfitting kits in order to place these units in service at the appropriate time and replace equipment on existing fleet. For information, upfitting is the term used to describe everything that goes in a Police Marked unit so that it may function properly. Fleet Maintenance Services Department will be able to re -use the computers, cameras and radios for all of the existing units however; the remaining equipment that must be purchased includes such items as lights, full compartment partitions, sirens, push bumpers, and center console keyboard mounting plates, etc. The standard cost to upfit an individual unit is over $9,000.00. ALTERNATIVES: No alternatives OTHER CONSIDERATIONS: The 23 2017 Ford Police Interceptor Law Enforcement Support Utility vehicles will be purchased from Rockdale Country Ford for a total cost not to exceed $697,001.00. The upfitting equipment being purchased from Cap Fleet Upfitters will upfit the 23 new police vehicles and will serve as replacement parts for existing fleet, for a total cost not to exceed $337,359.16. Total purchase from Caldwell Country Ford: Total purchase from Cap Fleet Upfitters: Grand Total: CONFORMITY TO CITY POLICY: $697,001.00 $337,359.16 $1,034,360.16 This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Police and Fleet Maintenance Services FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget $3,775,648.29 $0.00 $3,775,648.29 Encumbered / Expended Amount $1,910,726.06 $1,910,726.06 This item $1,034,360.16 $0.00 $1,034,360.16 BALANCE $830,562.07 $0.00 $830,562.07 Fund(s): Fleet Maint Svc and CC Crime Control Comments: None RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet — Police Vehicles Price Sheet — Police Vehicle Upfitting CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: ROBERTA ORTIZ ITEM DESCRIPTION QTY. UNIT PRICE SHEET POLICE VEHICLES TLGPC CONTRACT 521-16 CALDWELL COUNTRY FORD DBA ROCKDALE COUNTRY FORD CALDWELL, TEXAS UNIT PRICE EXTENDED PRICE 1 2. 2017 Police Interceptor Utility AWD BuyBoard Fee 23 1 EA EA $30,287.00 $400.00 $696,601.00 $400.00 Total Price $697,001.00 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: ROBERTA ORTIZ ITEM DESCRIPTION QTY. UNIT 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 33. Center Section Push Bumber Dual Compartments, Pro -cell, Full Partition Stud Mount Micron Red Stud Mount Micron Blue Vertex Super -LED Split Red/Blue D T -rail Mount 2 Univ Loks with #2 Key T -Rail Free Standing Mount Kits Inner Edge XLP 10 -LT Explorer Outter Edge 6LT Micron Explorer ION Mirror -Beam Explorer R/B M4 LED Flasher Blue/Red M4 Series Flange Black Smoked Lens Duo with Carbide Cencom, Speaker and Bracket Cencom Sapphire Siren System SA315P Speaker, Black Plastic Ford Expedition Hardwire Center Console for 2015-2016 and up Extinguisher Box Bracket Plastix Plus Level 3 Tilt -up 40" X 32" cargo mount Level III, 2 Drawer Ply Vault Simplex Push Button Lock 2219 D -Trail Mount 2 Univ Locks T -Rail Free Standing Mount Kits Keyboard Mounting Plate for Datalux Monitor Adapter Plate Assembly Quick Release Pull Out Design for Keyboard CenCom, MPC -03 Summit Remote, 5300 Installation labor Shop Supplies Inspection Shipping and Handling 37 36 37 37 74 34 1 2 2 2 74 74 35 2 2 37 37 36 2 2 1 2 1 6 6 37 37 37 37 37 37 37 37 1 EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA EA PRICE SHEET POLICE VEHICLE UPFITTING EQUIPMENT TLGPC CONTRACT 432-13 CAP FLEET UPFITTERS TEMPLE, TEXAS UNIT PRICE EXTENDED PRICE $319.00 $11,803.00 $2,321.90 $90.48 $90.48 $83,588.40 $3,347.76 $3,347.76 $69.00 $5,106.00 $321.75 $126.75 $580.16 $570.64 $237.00 $131.04 $5.34 $2,265.00 $728.72 $188.00 $126.75 $650.00 $89.00 $890.00 $245.00 $2,077.00 $54.50 $329.00 $321.75 $118.30 $65.42 $43.37 $146.27 $22.94 $22.94 $1,850.00 $60.00 $30.00 $2,840.00 $10,939.50 $126.75 $1,160.32 $1,141.28 $474.00 $9,696.96 $395.16 $79,275.00 $1,457.44 $376.00 $4,689.75 $24,050.00 $3,204.00 $1,780.00 $490.00 $2,077.00 $109.00 $329.00 $1,930.50 $709.80 $2,420.54 $1,604.69 $5,411.99 $848.78 $848.78 $68,450.00 $2,220.00 $1,110.00 $2,840.00 Total Price $337,359.16 AGENDA MEMORANDUM Future Item for the City Council Meeting of March 21, 2017 Action Item for the City Council Meeting of March 28, 2017 DATE: March 16, 2017 TO: Mayor Pro Tem and Council FROM: Rebecca L. Huerta, City Secretary rebeccah@cctexas.com (361) 826-3105 Amendments to Council Policies CAPTION: Resolution amending City Council Policy Section 16 to reduce the number of City Council Members required to place an item on the agenda or to call a special or workshop meeting from at least five members to four members. PURPOSE: To amend Council Policies Section 16 to reduce the number of council members required to place an item on the agenda or to call a special or workshop meeting from at least five members to four members. BACKGROUND AND FINDINGS: Council Policies, Section 16.a.1. states the City Council shall meet in regular session at 2:00 p.m. each Tuesday, except that, in order to maximize efficiency and use of resources, it shall not meet the first Tuesday each month unless requested by the Mayor, five Council Members, or the City Manager. Section 16.a.4. states that "special and workshop sessions may be called by the Mayor, a majority of the City Council, and the City Manager". Section 16.d. states that "the City Council agenda will be prepared and assembled jointly by the City Manager and the City Secretary in a format consistent with the Open Meetings Act, subject to modification by Council directive. Items may be placed on the agenda by the Mayor, City Manager, or at least five members of the City Council who shall confirm their request with the office of the City Secretary. A member wishing to place an item on the agenda shall notify the City Secretary who shall inquire of the other members whether they wish to join the request." Based on a legal analysis and an informal survey of best practices in other cities, staff is recommending that the minimum number of council members required for both actions be reduced from five to four members. Requiring less than a majority ensures adherence to the Open Meetings Act. CONFORMITY TO CITY POLICY: City Charter EMERGENCY / NON -EMERGENCY: Not applicable. DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital RI Not applicable Fiscal Year: 2016-2017 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): RECOMMENDATION: Staff recommends approval of the resolution. LIST OF SUPPORTING DOCUMENTS: Resolution Resolution amending City Council Policy Section 16 to reduce the number of City Council Members required to place an item on the agenda or to call a special or workshop meeting from at least five members to four members Now, therefore be it resolved by the City Council of the City of Corpus Christi, Texas, as follows: SECTION 1. That City Council Policy 16 is amended to read as follows. 16. - Conduct of meetings; rules of procedure. a. Time and Place of Meetings. 1. The City Council shall meet in regular session at 2:00 p.m. each Tuesday, except that, in order to maximize efficiency and use of resources, it shall not meet the first Tuesday each month unless requested by the Mayor, the City Manager, or four members of the City Council. The time for a regular meeting may be changed as deemed advisable by Council. 2. Regular meetings shall be held at City Hall or another governmentally owned place within the City. 3. Special and workshop sessions may be held in any public place. 4. Special and workshop sessions may be called by the Mayor, , the City Manager, or four members of the City Council. b. Workshop Meetings. A workshop session is a meeting for the sole purpose of gathering information or discussing public business without taking action. In the event a workshop session is scheduled on the same day as and prior to a regular or special session, no discussion shall be held at the workshop of items previously scheduled for such regular or special session. c. Open Meetings. The Council shall conduct all meetings in accordance with the Texas Open Meetings Act. d. Agenda. The City Council agenda will be prepared and assembled jointly by the City Manager and the City Secretary in a format consistent with the Open Meetings Act, subject to modification by Council directive. Items may be placed on the agenda by the Mayor, City Manager, or four members of the City Council who shall confirm their request with the office of the City Secretary. A member wishing to place an item on the agenda shall notify the City Secretary. The City Secretary may place presentations, items of a ceremonial nature, Board, Commission and Committee appointments, and items affecting his office on the agenda. The subject matter of agenda items shall be subject to Council action, unless the item is limited to discussion. e. Presiding Officer. The Mayor, Mayor Pro Tem, or other presiding officer shall have the power and duties usually incumbent on a presiding officer. All questions of order shall be decided by the presiding officer, subject to appeal to the Council. Page 1 f. Recess of Meeting. Any meeting may be recessed (continued) one or more times to a time and place specified by the presiding officer prior to recess. No regular session may continue in recess to a time after the convening of the next regular meeting of the Council. g. Order of Business. The order of business shall be that set forth in the agenda unless modified by the Mayor or a majority of Council present and voting. On any item for which the Council permits public comment, time limitations may be set on an equitable basis. h. Recognition of Council Members. Council Members will not interrupt one another, and will speak only when recognized by the presiding officer. The presiding officer will recognize Council Members to speak in the order of their electronic request. i. Seconding Motions. Motions shall require a second, except if the wording of the motion appears on the agenda. j. General Duties of City Secretary. The City Secretary shall act as clerk of the Council, shall accurately keep the minutes and all other records required by law to be kept of Council proceedings, and shall make all publications and notices required by law. k. Record Vote. The ayes and nays shall be taken upon the passage of all ordinances or resolutions and entered in the minutes. Any member may request that the ayes and nays be taken on a motion and same shall be recorded. The order in which Council Members vote will rotate from meeting to meeting. I. Quorum. A majority of the Council Members holding office constitutes a quorum. m. Vote Required for Passage. Except as otherwise required by law for a particular matter, final passage of an ordinance or resolution shall require the affirmative vote of a majority of all Council Members holding office, and other matters shall require a majority of Council Members present and voting. n. Motion to Reconsider. Any member of the Council who voted with the prevailing side on any question may move its reconsideration no later than the next regular meeting; reconsideration shall require a two-thirds vote of the Council. The fact that a failed action is subject to such motion being made at the next regular meeting does not prevent it from being brought up as new business at or before the next regular meeting. o. Motion to Table. To "table" shall mean to postpone until a later Council meeting. If the motion to table or postpone specifies a particular time, the matter shall be placed on the Council agenda for that date unless the Mayor or Council subsequently directs differently. If the motion does not specify a particular time, the matter shall be placed on the Council agenda when requested in accordance with general procedures for agenda items. The pendency of a tabled motion shall not prevent the Council from considering the same matter as new business. p. Applicability of Robert's Rules of Order. The most current edition of Robert's Rules of Order shall govern Council proceedings, unless in conflict with these rules or other law. Provided, however, Council's failure to comply with Robert's Rules of Order shall not invalidate any Council action. Page 2 q. Suspension of Rules. Any of the rules prescribed in this Section 16 may be suspended by a majority vote of all Council Members qualified to vote. r. Disorderly Conduct. For a City Council Member's violation of the Rules of Decorum which it finds to seriously disrupt a meeting, or for a City Council Member's violation which occurs after repeated warnings from the presiding officer, the Council may assess a civil penalty for violation not to exceed $25.00, as authorized by Article II, Section 10 of the City Charter. The City Manager shall cause the amount penalized to be deducted from the Council Member's next paycheck. (Res. No. 21901, § 1, 3-22-1994) Corpus Christi, Texas of The above resolution was passed by the following vote: Mayor Rudy Garza Paulette Guajardo Michael Hunter Joe McComb Ben Molina Lucy Rubio Greg Smith Carolyn Vaughn Page 3 AGENDA MEMORANDUM City Council Meeting of March 21, 2017 DATE: TO: Mayor Pro Tem and Council March 16, 2017 FROM: Rebecca Huerta, City Secretary RebeccaH@cctexas.com (361) 826-3105 Process for City Charter Review STAFF PRESENTER(S): Name Title/Position 1. Rebecca Huerta City Secretary 2. Miles Risley City Attorney BACKGROUND: Department On November 1, 2016, the City Council passed Resolution No. 031000, which stated that "the City of Corpus Christi will conduct a comprehensive review of the Corpus Christi City Charter to ensure that terms and term limits are clear and satisfy the intent of the voters. The review will be provided to the next Charter Commission in order to hold an election of said issues at the next available election date authorized under state law." Today's presentation is a preliminary discussion to seek Council input on the process moving forward. The City Charter was last amended on November 8, 2016 (see attached brochure). The scope of the review was focused on Article II of the City Charter, with an emphasis on the possibility of extending Council terms from two to four years. The City Council created a charter review committee in September 2015. The Council reviewed the committee's recommendations and submitted nine proposed amendments to the voters, which were all approved. Per state law, the Charter may not be amended more often than every two years (730 days). Thus, the next available uniform election date would be on November 5, 2019. LIST OF SUPPORTING DOCUMENTS: November 2016 Ballot Brochure Discussion Questions PROCESS FOR CITY CHARTER REVIEW DISCUSSION QUESTIONS I. Who would lead the comprehensive review of charter? A. By outside counsel — "charter specialist"? B. By city staff and/or charter commission? II. Proposal process A. Council action — Council can, by majority vote, order a charter amendment election and propose amendments. B. Citizen petition — Council submits a proposed amendment to the voters if the amendment is supported by a petition signed by 5% of qualified voters in the city. C. Review Committee — The committee can only make recommendations to the Council. The Council must forward the recommendation to the voters. III. What appointment process would the Council prefer for the Charter Review Committee? A. "All members to City Council ad hoc committees will be appointed by the Mayor or a majority of the Council." IV. Areas to be considered — What is the scope of the review? A. City Council 1. Structure — 5 Single -Member Districts/ 3 At -Large/ 1 Mayor 2. Term of office 3. Term limits — Policy question that has no legal requirements. i. Consecutive ii. Cumulative 4. Qualifications i. Age ii. Residency 5. Disqualifications i. Debt ii. Convictions iii. Misconduct iv. Absences B. Vacancies C. Initiative, Referendum and Recall D. Other areas? City of Corpus Christi Election Information for November 2016 General Election • Adopt Type B Sales Tax to Replace Expiring Portion of Type A Sales Tax Replacing the portion of Type A sales tax that expires in 2018 with the adoption of a one-eighth of one percent sales and use tax (maintaining the current level of sales and use tax) to be administered by Type B Corporation under Chapter 505 of the Texas Local Government Code, to be effective for 20 years, with the use of proceeds for: 50% economic development; Up to $500,000 annually on affordable housing; and Balance of proceeds to be used for construction, maintenance and repair of arterial and collector streets and roads. Continuation of the Crime Control District Whether the Corpus Christi Crime Control and Prevention District should be continued for ten years and the crime control and prevention district sales tax should be continued for ten years. anResidential Street Reconstruction Tax Amending the City Charter to establish a dedicated fund to be used solely for residential street reconstruction and authorizing City Council to levy, assess and collect a property tax not to exceed six cents per one hundred dollars of assessed value for the purpose of residential street reconstruction, to be gradually implemented at a rate of not more than two cents per one hundred dollars of assessed value per year. inDesignation of Mayor Pro Tem Amending the City Charter to provide that in the event of disability of the Mayor for more than 30 days, the Council Member elected at large who received the highest number of votes shall become the Mayor Pro Tem and act as Mayor during this period of disability. Increase Term for Procurement of Auditor Contracts Amending the City Charter to allow for procurement of contracts for independent auditor with terms up to five years. • AI& Var For detailed information about each City Proposition on the ballot visit www.cctexas.com 2016 Election Central Early Voting Scheduled for October 24, 2016 - November 4, 2016 Election Day November 8, 2016 7 a.m. - 7 p.m. For voting locations and information visit www_co.nueces.tx.us Information provided by the City of Corpus Christi is intended to solely inform citizens about the upcoming election and does not advocate for any measure on the ballot. • 6 AIIow Appointment of Alternative Members To Civil Service Board Amending the City Charter to provide for the appointment of two alternative members to the Civil Service Board. Comply With State Law To AIIow City Employees To File For Election To Municipal Office Amending the City Charter to eliminate the prohibition on City employees filing for nomination or election to a municipal public office to comply with Texas law. Allow Issuance of Bonds in Accordance with State Law Amending the City Charter to provide authority to issue bonds in accordance with laws of the State of Texas. Amend Waiting Periods for City Leases Amending the City Charter to clarify the approval process for leases, update the statutory reference, and eliminate the waiting periods for leases and lease amendments which do no exceed 5 years. Update Legal References and Clarify General Powers Amending the City Charter to update legal reference in the General Powers section and clarify the General Powers MBClarify Purchasing Procedures To Comply With State Law Amending the Charter to clarify the procedures regarding purchases and contracts in conformity with State Law. To see the complete election ordinances please visit www.cctexas.com AGENDA MEMORANDUM City Council Meeting of March 21, 2017 DATE: TO: Margie C. Rose, City Manager March 9, 2017 FROM: Mike Markle, Chief of Police Mikema@cctexas.com 886-2604 Animal Care Overview STAFF PRESENTER(S): Name 1. Mike Markle 2. William Broyles 3. Mark Schauer OUTSIDE PRESENTER(S): Title/Position Chief of Police Captain Asst Chief Department Police Police Police Name Title/Position Organization 1. 2. BACKGROUND : The Police Department began management of the Animal Care unit in January, 2012. This presentation serves as an update to changes made at the unit. LIST OF SUPPORTING DOCUMENTS: PowerPoint — Animal Care Animal Care Services (Animal Control, Kennels, Clinic, Vector) March 21, 2017 Synopsis of first year under Police Department 2012 • Priority is on public safety and rabies control with emphasis on live release • Vet clinic began focus on increasing live release rate and picking up strays • Inoculations occur on intake to prevent disease and place for adoption after three days • Higher quality dog food (more protein) for improved health • Hired experienced shelter veterinarian • Hiring process for animal control staff modified to provide for stronger background checks • Purchased air conditioned cages for trucks • Discontinued dead animal drop offs • Improved employee training • Improved relationships with local animal non -profits • Enhanced appearance of facility 2 Present Focus Areas • Field work : enforce ordinances, pick up strays, handle bite cases, investigate cruelty cases • Kennels: control disease, promote welfare of animal, adoptions • Veterinary Clinic: spay -neuter kennel animals, inoculations, illness, other medical treatments • Vector: mosquito abatement, pest control, bees Present • Total budgeted staff of 43 (32 FTE's / 11 Temps) • 18 animal control officers work in the field (includes field Lead). Plus 1 animal control officer assigned to bite case investigations and 1 assigned to cruelty investigations. • 11 Kennel Technicians (includes Kennel Master) • 3 Vector Control • 3 Clinic (includes Veterinarian) • 4 Front Office • 2 Live Release ✓ Actual staffing currently: 32 Calendar Year 2016: • Calls for service = 21,963, or 84 calls per business day • # of intakes: • Dogs = 4,335 • Cats = 1,499 • Other = 1,306 • Total = 7,140 4 How we operate • Police Captain manages operation • Open 6 days a week • Kennel workers on site 7 days per week to feed and clean • Kennels closed to public in mornings for cleaning - total disinfecting each cage each day to control for parvo, ticks, mites, etc. • On-call animal control officers after 8:00 pm to respond to bites, dangerous animals, etc. • Targeted enforcement and education in neighborhoods with most strays 5 Current Practices • Live release rate: (dogs or cats that left facility alive) for Jan -Feb 2017 is 83% • Increased the number of rescues throughout the country (200+) • "Rescue Lists" of dogs -at -risk provided to non -profits daily • New uniforms for kennel staff • Animals are networked nationwide as soon as they arrive on a daily basis. This decreases their length of stay and increases live release. 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Live Release 50% 37.90% 23.80% 71.50% 53.20% 82% 2012 2013 2014 2015 2016 2017 Live Release Recent improvements • Partnership with People Assisting Animal Control (PAAC) for free spay/neuters in targeted neighborhoods • Partnership with PAAC to create "Pet Retention Program" to educate owners who want to get rid of their pets in order to decrease drop off rate • Partnership with PAAC to create Heart Worm Treatment Program to treat HW positive adoptable dogs for free • Added additional truck for bee control • Established a sufficient supply of larvicide and adulticide for major rain event • Purchased new larvacide machines for mosquito abatement • Created a rules manual for standardized operating procedures • Purchased 5 new trucks for Animal Control Officers and 3 for Vector • Better equipment used to capture strays AGENDA MEMORANDUM City Council Meeting of March 21, 2017 DATE: March 16, 2017 TO: Margie C. Rose, City Manager FROM: Julio Dimas, CFM, Interim Director, Development Services Department JulioD@cctexas.com (361) 826-3276 Manufactured Housing for Affordable Infill Development STAFF PRESENTER(S): Name 1. Julio Dimas Title/Position Interim Director Department Development Services OUTSIDE PRESENTER(S): Name Title/Position Organization 1. Andy Taubman Developer N/A 2. J. Martin Montgomery, P.E. Engineer RCS Enterprises, LP BACKGROUND: Following an initial presentation made to City Council on February 21, 2017, Andy Taubman and staff will review questions and concerns about allowing manufactured homes as infill development in single-family zoning districts. LIST OF SUPPORTING DOCUMENTS: 1. Presentation — By Andy Taubman 2. Presentation — By Staff 3. Report by Andy Taubman: Manufactured Housing for Affordable Housing Issues, March 15, 2017 (Not reviewed by Staff as of agenda publishing) Where can working people afford to live? Manufactured Housing for affordable infill development A n•y au •man —owner o two ots J. Martin Montgomery P.E. — RCS Enterprises, LP March 21, 2017 Andy Taubman 03/21/17 Regulation of Building • Building Codes - 2015 International Residential Code, adopted by Corpus Christi - H D so- 'rim I.. -• . h- F-. -r.I .v-rnm-n •Types of housing in Corpus Christi - Site -built homes - Modular homes - Manufactured homes Each of these housing types is currently allowed in Corpus Christi 2 Andy Taubman 03/21/17 Hurricane Considerations • Windstorm new construction standards: — Site built home specification of 120 mph for a 3 second gust — Manufactured home specification of 115.5 mph for a 3 second gust • Proper comparison is to existing housing stock which was built before modern windstorm considerations or that has degraded due to rot, termite damage, or aging of metal fasteners • oo•ing is a major issue or property •amage an• •estruction. :ecause manufactured housing is installed 18" to 36" above grade, it has a substantial advantage over slab -on -grade homes with respect to stormwater protections Manufactured housing is a safe alternative 3 Andy Taubman 03/21/17 Financing and Insurance .................................................................................................................................... • Borrowers with credit score > 620: - Government backed loans are available from FHA orVA - Downpayment of 3.5% - Term of 20 years - Rates from 4.25% to 5.00% fixed • Borrowers with credit score <62o but > 500: - Portfolio lenders - Downpayment of 5% to 35%, possible to use land equity in some programs - Term of 15 to 23 years - Rates of 6.25%to 8.99% • Insurance - All risk insurance including structure, general liability, windstorm - Typical cost of $1200 to $2400 per year - Deductibles range from $75o to $2500 4 Andy Taubman 03/21/17 Structure Lifespan and Maintenance .................................................................................................................................... • Normal lifespan expected, comparable to site built — Code differences between IRC and HUD produce substantially same homes — Conventional construction materials common between construction methods — Load-bearing concrete foundation — Replacement parts and materials available off-the-shelf • Pier -and -beam construction easy to maintain — Easy to re -level or adjust for foundation problems — Easy access to inspect and maintain major systems such as plumbing — asy to inspect an. treat or su.terranean termites — Rates of 6.25% to 8.9.9% • Low housing price results from labor reduction, not raw material savings • Financially capable owners or tenants 5 Andy Taubman 03/21/17 Here is affordable housing for Working Families • This is MARKET RATE HOUSING - Retirees - Nurses - Small business owners - Teachers - Mechanics - Refiner workers • Ownership economics for 3 -bedroom / 2 -bath manufactured home: Mortgage $533 Insurance $120 Property Tax $ go Total $743 monthly or $8,916 per year Cheaper than renting and fixed for 20 years 6 Andy Taubman 03/21/17 Regular Density -- Pier and Beam Home Site Plan For 1221 Central St. Drainage Culvert North / Fence Plant Beds Tree Lot area Building area = 7,100 ft^2 -- 100% = 992 ftA2 -- 14% Single family house on single family lot Andy Taubman 03/21/17 People matter in Corpus Christi .................................................................................................................................... •The Iglesia Ni Cristo —Church of Christ •Tony Bazan •Mary Torres 8 Andy Taubman 03/21/17 Manufactured Housing has a place in Corpus Christi YE:S !1 1,1 !1 YES!!a!1 • Consider YES!J!i! The City has absolute authority to designate where these houses are built both now and in the future. Two demonstration homes are under consideration. If this becomes an accepted program, there is much work to be done to determine neighborhood suitability. It is wrong to put manufactured housing in established neighborhoods with high home values. 9 Manufactured Housing For Affordable Infill Development City Council Presentation March 21, 2017 Intro duction Can manufactured homes be a viable option for affordable infill residential development in single-family zoning districts? Three over -arching questions: ➢ Does a difference in the quality of construction exist between site -built and manufactured homes that impacts neighborhood safety? ➢ Do manufactured homes affect the values of surrounding properties? ➢ Does the presence of a manufactured home on a lot impact the value of the property itself? What do we already know? ➢ Manufactured homes are safe. ➢ Manufactured homes are allowed in Corpus Christi, but only in certain zoning districts. ➢ Manufactured homes have a lower purchase price than site -built housing. ➢ Zoning exists to protect property values, among other things. ➢ In other Texas cities with zoning codes, manufactured homes are restricted to certain zoning areas and prohibited in single-family zoning districts. ➢ Industrialized Housing (Modular Housing) is allowed in any single- family zoning district with stipulations. ➢ Manufactured homes can be constructed similarly to site -built houses. Codes Regulating Manufactured Homes What inspections are conducted? ➢ City inspections for setbacks, foundation, stairs/ landing to doors, and utility/ electricity connections only. ➢ The State inspects installation on a site. ➢ FHA may inspect the interior if involved in the financing. Zoning ➢ Purpose: To protect property values and quality of life, among other things. ➢ Authority: State statue authorizes cities to regulate the location of manufactured homes, but not modular or site -built houses. Cities cannot prohibit the replacement of a mobile home with a new HUD - code manufactured home. ➢ Allowable Locations: Manufactured homes are only allowed in Manufactured Home zoning districts: • "R -MH" Manufactured Home Subdivision - 8 acres min. • "R -MH" Manufactured Home Park - 5 acres min. ➢ Existing Zones: How many acres of vacant land are already zoned for manufactured home development? Zoning ➢ Planning: Should the City plan for and zone more areas for Manufactured Home Subdivisions/Parks to help increase the number of manufactured homes? ➢ Precedence: Decisions on rezonings are used to help make decisions on future rezonings. A City policy or City position is helpful for handling future requests and affords developers predictability. I Site -Built Houses rance Regulati) j Windstorm Standards ir- Manufactured Homes (HUD -Code Regulations) Wind Zone 1 - 90 mph Wind Zone 2 - 115 mph; Required in Corpus Christi Inland II -110 mph; Required west of Robstown Inland I -120 mph; Required in Corpus Christi Wind Zone 3 -125 mph; Required on Padre/Mustang Island Seaward -130 mph; Required on Padre/Mustang Island Texas Windstorm Insurance Association (TWIA) insures some manufactured homes and mobile homes but not all. • TWIA has special forms and rules that apply to these types of structures. • Texas Department of Insurance (TDI) will not issue a Certificate of Compliance (WPI -8) on a manufactured or mobile home. Construction Standards ➢ Consumer has various options, various qualities from which to select. ➢ Consumer can choose a model constructed to standards that are similar to a site -built house. Variations include: • Materials used in wet areas. • Size and spacing of wall framing and plates. • Wallboard vs. Sheet -rock • HVAC System - above or below living area ➢ Repairs • Third -party inspection needed for structural/ system repairs. • Repairs are not regulated/inspected by the City. • Do manufactured homes require more frequent maintenance than site -built homes? Effect on Surrounding Property Values ➢ Zoning: Purpose is to protect property values, among other things. ➢ Depreciation Rates: From Nueces County Appraisal District • Manufactured Homes - 45 -year schedule • Site -Built Homes - 75 -year schedule ➢ Will a manufactured home hold value over time? ➢ Will a manufactured home affect the appraised values of surrounding site -built homes, and impact property taxes? ➢ Does having a few manufactured homes in a neighborhood hurt the neighborhood's chance of long-term revitalization Effect on Surrounding Property Values ➢ Does the presence of manufactured homes disincentivize private investment in surrounding single-family properties ➢ Is there a lost opportunity in facilitating the renovation or construction of site -built houses? ➢ Does the classification as real property vs. personal property make a difference? • Does a difference in the foreclosure process impact the neighborhood? Neighborhood Character ➢ Can a manufactured home fit in aesthetically with the other houses in a neighborhood? ➢ How does the City protect a neighborhood from becoming a Manufactured Home subdivision? ➢ Can and should the City allow manufactured homes in single- family neighborhoods only where the value of the manufactured home is equal to the average value of surrounding houses? 11 Considerations for New City Policy If developed into a city-wide program, the following ideas should be evaluated: ➢ Allow by -right with certain stipulations to reduce the number of rezonings needed and to reduce fees for developer, or: • Should public hearings be required for each site, such as through a Special Use Permit? • Should the City test this program in multifamily zoning districts first? Considerations for New City Policy ➢ Prohibit manufactured homes in select neighborhoods where revitalization is being encouraged or anticipated, in historic areas, or in neighborhoods with a particular aesthetic that manufactured homes cannot replicate. ➢ Find methods to prevent neighborhoods from turning into manufactured home subdivisions. • Restrict to neighborhoods with only a few vacant lots. ➢ Require certain architectural features to increase compatibility with surrounding site -built houses: • Conventional siding, skirting, conventional roof shingles, landscaping, windows, eaves, porches, carport, double -wide, entry door on the front rather than side, etc. 13 Considerations for New City Policy ➢ Require higher construction standards to increase compatibility with surrounding site -built houses: • Require Wind Zone 3 -125 mph • Require stronger framing materials • Require a certain foundation ➢ Require homeownership or allow rentals ➢ Real vs. personal property ➢ Allow only new manufactured homes ➢ Standards for maintenance ➢ Is additional stakeholder outreach needed? • Appraisers, Realtors, Homeowners Associations, etc. 14 Questions NFPA n FAQ National Fire Protection Association Fire Analysis & Research Manufactured Home Fires Fact Sheet In 2007-2011, 11,400 structure fires per year were reported in manufactured homes, with associated losses of: ➢ 206 civilian deaths, ➢ 434 civilian injuries, and ➢ $179 million in direct damage per year. Because of changes in the way fires are reported since 1999, the manufactured home share of certain minor fires cannot be identified, which means estimated fires and associated injuries are probably under- estimated. Estimates of associated deaths and direct property damage are essentially unaffected. Compared to pre -HUD -standard manufactured homes (built before 1976), post -standard homes had a 57% lower rates of civilian deaths per 100 fires in 2007-2011. Post -standard Pre -standard 1 Civilian Deaths per 100 Fires 2007-2011 Average 1.3 0 3.1 1 2 3 4 Manufactured homes (all ages combined) had roughly the same fire death rate per 100,000 occupied housing units as other one- or two-family homes in 2007-2011. If all pre -standard manufactured homes were removed from the inventory of occupied units, it is estimated that the manufactured home fire death rate would be considerably lower than the rate in other one- or two-family homes. In 1989-1998, post -standard manufactured homes with smoke alarms had a 31% lower death rate per 100 fires than post -standard manufactured homes with no smoke alarms. According to the American Housing Survey, in 2011, occupied manufactured homes were less likely to have working smoke alarms (91.8% vs. 94.6%) than all occupied housing units including multi -family. In the U.S. Consumer Product Safety Commission's 2004-2005 study of unreported fires, manufactured homes were less likely (91% vs. 97-98%) to have smoke alarms than either detached single-family homes, townhouses or row homes, or multi -family housing. Post -standard manufactured home fires are more likely to have flame damage confined to room of origin, especially if the fires are started by heating or cooking equipment. Percent of 1989-1998 Fires with Flame Damage Confined to Room of Origin • Pre -Standard • Post -Standard 79% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 47% 67% Heating 58% 55% 40% Cooking Total Fires per 1,000 occupied manufactured homes dropped sharply when the HUD standards were introduced but have not declined since then. Year of Manufacture After 1994 1985-1994 1975-1984 1970-1974 Before 1970 Rate of 2007-2011 Fires per 1,000 Manufactured Homes 1.4 1.3 1.6 2.2 2.6 1 0 1.5 2.0 2.5 3.0 Source: Manufactured Home Fires, John R. Hall, Jr. September 2013 NFPA, 1 Batterymarch Park, Quincy, MA 02169, www.nfpa.org Fire Analysis & Research Division, osds@nfpa.org MANUFACTURED HOME FIRES John R. Hall, Jr. September 2013 NFPA National Fire Protection Association Fire Analysis and Research Division MANUFACTURED HOME FIRES John R. Hall, Jr. September 2013 NFPA National Fire Protection Association Fire Analysis and Research Division Abstract During the five-year period of 2007-2011, U.S. fire departments responded to an average of 11,400 structure fires in manufactured homes per year, with annual losses of 206 civilian deaths, 434 civilian injuries and $179 million in direct property damage. Because of changes in the National Fire Incident Reporting System (NFIRS) in 1999, fires and injuries are probably under -estimated. Manufactured homes built after the introduction of the HUD standards have lower rates of civilian deaths per hundred reported fires than those built before the HUD standards were introduced. The 2007-2011 death rate was 57% lower for post -standard manufactured home than for pre -standard manufactured homes. Manufactured homes had a 2007-2011 fire death rate per 100,000 housing units that was roughly the same as the rate for other one- or two-family homes, relative to occupied year-round units. The percentage of fires confined to room of origin was 15 percentage points higher for post -standard manufactured homes, compared to pre -standard manufactured homes, in 1989-1998. Smoke alarms reportedly are missing in half (51%) of all manufactured home fires where smoke alarm status was reported. Because all post -standard manufactured homes are required to be sold with smoke alarms installed, this implies a disturbingly high rate of smoke alarm removal by occupants. Keywords: manufactured home fire, mobile home fire Acknowledgements The National Fire Protection Association thanks all the fire departments and state fire authorities who participate in the National Fire Incident Reporting System (NFIRS) and the annual NFPA fire experience survey. These firefighters are the original sources of the detailed data that make this analysis possible. Their contributions allow us to estimate the size of the fire problem. We are also grateful to the U.S. Fire Administration for its work in developing, coordinating, and maintaining NFIRS. For more information about the National Fire Protection Association, visit www.nfpa.org or call 617-770-3000. To learn more about the One -Stop Data Shop go to www.nfpa.org/osds or call 617-984-7443. Copies of this analysis are available from: National Fire Protection Association One -Stop Data Shop 1 Batterymarch Park Quincy, MA 02169-7471 www.nfpa.org e-mail: osds@nfpa.org phone: 617-984-7443 NFPA No. USS16 -REV Copyright © 2013, National Fire Protection Association, Quincy, MA Executive Summary During the five-year period of 2007-2011, U.S. fire departments responded to an average of 11,400 structure fires in manufactured homes per year, with annual losses of 206 civilian deaths, 434 civilian injuries and $179 million in direct property damage. In 2011, 10,800 structure fires were reported in manufactured homes in the U.S. These fires had associated losses of 161 civilian deaths, 490 civilian injuries, and $151 million in direct property damage. Estimates of manufactured home fires and associated civilian injuries are under- estimated in 1999 and later years. The national estimates in this report combine the National Fire Incident Reporting System (NFIRS) and the NFPA survey, as described in Appendix A. Prior to 1999, manufactured homes were identified in NFIRS as Mobile Property Type 17, used to identify mobile buildings; Specific Fixed Property Use 410-419, one- or two-family dwellings; and Type of Situation Found 11, used to identify structure fires. Manufactured homes in transit would be coded as Type of Situation Found 13 (vehicle fire) and should not be included. Beginning in 1999 in NFIRS version 5.0, a manufactured home fire could be coded as a structure fire in a mobile or portable property (Incident Type 120-123), a non -confined structure fire (Incident Type 111-112, Property Use 410-419, Mobile Property Type 17), or a confined structure fire (Incident Type 113-118, Property Use 410-419, Mobile Property Type 17). However, if a fire is coded as a confined fire, many other details do not need to be coded, and in particular, Mobile Property Type need not be reported. Therefore, one cannot separate confined manufactured home fires coded with Incident Type 113-118 from confined fires in other types of homes. Confined fires account for a large share of total structure fires and associated injuries but for almost no civilian deaths and very little direct property damage. The estimates of manufactured home fires do not include fires coded as confined fires, because such fires cannot be identified. This means fires will be significantly under- estimated and injuries will be somewhat under -estimated, but death and property damages can be compared to pre -1999 estimates. Civilian fire deaths and direct damage, the two loss measures least affected by estimation problems have declined by about 60% since 1980. Civilian injuries, which are probably under- estimated, have declined by less than half. Fires, which are also probably under -estimated, have declined by nearly two-thirds. Manufactured homes built after the introduction of the HUD standards have lower rates of civilian deaths per hundred reported fires than those built before the HUD standards were introduced. The 2007-2011 death rate was 57% lower for post -standard manufactured home Manufactured Home Fires, 9/13 i NFPA Fire Analysis and Research than for pre -standard manufactured homes. There are so few deaths in fires with year of manufacture reported among 2007-2011 fires that these estimates should be regarded with caution. Looking at manufactured home fires by year of manufacture, the 2007-2011 average fire rate per 100,000 manufactured homes drops around the time when the HUD standards were introduced, but there is no statistical evidence that any change since then has produced enough risk reduction in enough units to produce a noticeable additional drop in the rate of fires per 100,000 units for recently manufactured units. Manufactured homes had a 2007-2011 fire death rate per 100,000 housing units that was roughly the same as the rate for other one- or two-family homes, relative to occupied year-round units. In 1999, six categories of fires were introduced under "incident type", each corresponding to a specific confined structure fire scenario. Fires reported as confined fires do not require detailed reporting and constitute a large share of fires in one- or two-family homes. At the same time, nearly all manufactured home fires were moved to four other "incident type" categories for mobile property used as a structure. It is believed that most confined fires in manufactured homes are coded as confined fires, because less detailed reporting is required, which means those fires usually cannot be identified as manufactured home fires. The estimates of civilian fire deaths and property damage are not significantly affected by this omission, but the estimated number of fires and the estimated number of civilian injuries are probably understated. Post -standard manufactured homes are more likely to have fires confined to room of origin, and this correlates with provisions of the standards that are designed to achieve such confinement. Sections 3280.203 — 3280.206 of the HUD standards provide requirements that are intended to slow or limit the spread of a fire by such means as: ➢ flame spread requirements for interior finish materials on • exposed walls, • columns, • partitions, and • ceilings; ➢ more targeted flame spread requirements for • wall and floor coverings near central heating units or water heaters, • interior finishes exposed to cooking ranges, • kitchen cabinet surfaces, and • plastic bathroom fixtures; and ➢ firestopping requirements. Manufactured Home Fires, 9/13 ii NFPA Fire Analysis and Research The percentage of fires confined to room of origin was 15 percentage points higher for post - standard manufactured homes, compared to pre -standard manufactured homes, in 1989-1998. Smoke alarms are associated with a lower civilian death rate per 100 fires in post -standard manufactured homes and in all manufactured homes. Smoke alarms reportedly are missing in half (51%) of all 2007-2011 manufactured home fires where smoke alarm status was reported. Because all post -standard manufactured homes are required to be sold with smoke alarms installed, this implies a disturbingly high rate of smoke alarm removal by occupants. Manufactured Home Fires, 9/13 iii NFPA Fire Analysis and Research Table of Contents Executive Summary Table of Contents iv List of Tables and Figures v Fact Sheet vii NFPA Resource Page ix Chapter 1. Manufactured Home Fire Problem 1 Chapter 2. How Safe Are Manufactured Homes? 5 Chapter 3. Other Characteristics of Manufactured Home Fires 19 Appendix A: How National Estimates Are Calculated 26 Manufactured Home Fires, 9/13 iv NFPA Fire Analysis and Research List of Table and Figures Page Table 1-A. Sensitivity Analysis of Estimates of 2005-2009 Manufactured 3 Homes vs. Other One- or Two -Family Homes Table 1-1. Overview of Manufactured Home Fires 4 Table 2-A. Civilian Deaths per 100 Fires in Pre -Standard vs. 6 Post -Standard Manufactured Homes Figure 2-1. Percent of Fires With Flame Damage Confined to Room of Origin, 7 by Cause Table 2-1. Rates of U.S. Manufactured Home Fires per 1,000 Occupied 12 Manufactured Homes, by Year of Manufacture Table 2-2. 1989-1998 Loss per Fire, by Extent of Flame Damage — 13 Pre -Standard vs. Post -Standard Manufactured Homes Table 2-3. U.S. Manufactured Homes vs. Other One- or Two -Family Homes — 14 Fire Experience Rates Table 2-4. Fires in Manufactured Homes vs. One- or Two -Family 15 Homes, by Leading Cause Table 2-5. Civilian Fire Deaths in Manufactured Homes vs. One- or 16 Two -Family Homes, by Leading Cause Table 2-6. Civilian Fire Injuries in Manufactured Homes vs. One- or 17 Two -Family Homes, by Leading Cause Table 2-7. Direct Property Damage (in Millions) in Fires in Manufactured 18 Homes vs. One- or Two -Family Homes, by Leading Cause Figure 3-1. Manufactured Home Fires and Deaths, by Day of Week 19 Figure 3-2. Manufactured Home Fires and Deaths, by Month of Year 19 Table 3-1. Manufactured Home Fires, by Hour of Day 21 Manufactured Home Fires, 9/13 v NFPA Fire Analysis and Research List of Tables and Figures (Continued) Page Table 3-2. Leading Items First Ignited in Fires in Manufactured Homes and 22 Other One- or Two -Family Homes Table 3-3. Leading Areas of Origin in Fires in Manufactured Homes and 24 Other One- or Two -Family Homes Manufactured Home Fires, 9/13 vi NFPA Fire Analysis and Research orno NFPA` One -Stop Data Shop Fire Analysis and Research Division 1 Batterymarch Park, Quincy, MA 02169 Email: osds@nfpa.om www.nfpa.org Manufactured Home Fires FSR NFPA Fire Analysis & Research In 2007-2011, 11,400 structure fires per year were reported in manufactured homes, with associated losses of: • 206 civilian deaths, • 434 civilian injuries, and • $179 million in direct damage per year. Because of changes in the way fires are reported since 1999, the manufactured home share of certain minor fires cannot be identified, which means estimated fires and associated injuries are probably under -estimated. Estimates of associated deaths and direct property damage are essentially unaffected. Compared to pre -HUD -standard manufactured homes (built before 1976), post -standard homes had a 57% lower rates of civilian deaths per 100 fires in 2007-2011. Post -standard Pre -standard Civilian Deaths per 100 Fires 2007-2011 Average 1.3 0 3.1 1 2 3 4 Manufactured homes (all ages combined) had roughly the same fire death rate per 100,000 occupied housing units as other one- or two-family homes in 2007-2011. If all pre -standard manufactured homes were removed from the inventory of occupied units, it is estimated that the manufactured home fire death rate would be considerably lower than the rate in other one- or two-family homes. In 1989-1998, post -standard manufactured homes with smoke alarms had a 31% lower death rate per 100 fires than post -standard manufactured homes with no smoke alarms. According to the American Housing Survey, in 2011, occupied manufactured homes were less likely to have working smoke alarms (91.8% vs. 94.6%) than all occupied housing units including multi -family. In the U.S. Consumer Product Safety Commission's 2004-2005 study of unreported fires, manufactured homes were less likely (91% vs. 97-98%) to have smoke alarms than either detached single-family homes, townhouses or row homes, or multi -family housing. Manufactured Home Fires, 9/13 vii NFPA Fire Analysis and Research, Quincy, MA. July 2011 Post -standard manufactured home fires are more likely to have flame damage confined to room of origin, especially if the fires are started by heating or cooking equipment. Percent of 1989-1998 Fires with Flame Damage Confined to Room of Origin Pre -Standard Post -Standard 79% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 47% 67% Heating 58% 55% 40% Cooking Total Fires per 1,000 occupied manufactured homes dropped sharply when the HUD standards were introduced but have not declined since then. Year of Manufacture After 1994 1985-1994 1975-1984 1970-1974 Before 1970 Rate of 2007-2011 Fires per 1,000 Manufactured Homes 1.4 1.3 1.6 2.2 2.6 1.0 1.5 2.0 2.5 3.0 Manufactured Home Fires, 9/13 viii NFPA Fire Analysis and Research, Quincy, MA. July 2011 1 NFPA's Fire Safety Resources NFPA's wealth of fire -related research includes investigations of technically significant fire incidents, fire data analysis, and the Charles S. Morgan Technical Library, one of the most comprehensive fire literature collections in the world. In addition, NFPA's Fire Protection Research Foundation is a source of independent fire test data. Find out more at: www.nfpa.org/research Research NEPA Codes & Standards NFPA also develops, publishes, and disseminates more than 300 consensus codes and standards intended to minimize the possibility and effects of fire and other risks. Among these are: NFPA 501: Standard on Manufactured Housing NFPA 501A: Standard for Fire Safety Criteria for Manufactured Home Installations, Sites, and Communities Properly installed and maintained smoke alarms are necessary to provide a warning of any fire to all occupants. You can find out more information about smoke alarms here: NFPA Smoke Alarm Information Home fire sprinkler systems provide even greater protection. These systems respond quickly to reduce the heat, flames, and smoke from a fire until help arrives. More Advocacy Public Education For consumers: NFPA has consumer safety information regarding causes, escape planning, fire & safety equipment, and many other topics. For Kids: Sparky.org has important information for kids delivered via fun games, activities, and cartoons. For public educators: Resources on fire safety education programs, educational messaging, grants & awards, and many other topics. Manufactured Home Fires, 9/13 ix NFPA Fire Analysis and Research Chapter 1. Manufactured Home Fire Problem During the five year period of 2007-2011, U.S. fire departments responded to an average of 11,400 structure fires in manufactured homes per year, with annual losses of 206 civilian deaths, 434 civilian injuries and $179 million in direct property damage. In 2011, 10,800 structure fires were reported in manufactured homes in the U.S. These fires had associated losses of 161 civilian deaths, 490 civilian injuries, and $151 million in direct property damage. Estimates of manufactured home fires and associated civilian injuries are under- estimated in 1999 and later years. The national estimates in this report combine the National Fire Incident Reporting System (NFIRS) and the NFPA survey, as described in Appendix A. Prior to 1999, manufactured homes were identified in NFIRS as Mobile Property Type 17, used to identify mobile buildings; Specific Fixed Property Use 410-419, one- or two-family dwellings; and Type of Situation Found 11, used to identify structure fires. Manufactured homes in transit would be coded as Type of Situation Found 13 (vehicle fire) and should not be included. Beginning in 1999 in NFIRS version 5.0, a manufactured home fire could be coded as a structure fire in a mobile or portable property (Incident Type 120-123), a non -confined structure fire (Incident Type 111-112, Property Use 410-419, Mobile Property Type 17), or a confined structure fire (Incident Type 113-118, Property Use 410-419, Mobile Property Type 17). If a fire is coded as a confined fire, many other details do not need to be coded, and in particular, Mobile Property Type need not be reported. Because of this reduced late burden, it is likely that most confined fires in manufactured homes are being coded as confined fires and are not identifiable as manufactured home fires. Confined fires account for a large share of total structure fires and associated injuries but for almost no civilian deaths and very little direct property damage. The estimates of manufactured home fires probably are missing most fires coded as confined fires, because such fires cannot be identified as manufactured home fires. This means total manufactured home fires will be significantly under -estimated, injuries will be somewhat under -estimated, but deaths and property damages can be compared to pre -1999 estimates. Civilian fire deaths and inflation-adjusted direct property damage, the two loss measures least affected by estimation problems, declined by about 60% from 1980 to 2011. Civilian injuries, which are probably under -estimated, declined by less than half. Fires, which are also probably under -estimated, declined by nearly two-thirds. (See Table 1-1.) Manufactured Horne Fires, 9/13 1 NFPA Fire Analysis and Research, Quincy, MA A manufactured home is not a motor home or trailer, and although it is often called a "mobile home," it is not that either. A manufactured home is a structure built on a chassis and designed to be towed by a vehicle to a permanent or semi-permanent site, where it will be used as a single-family residence. (Similar structures can be used for other purposes, such as temporary offices, but such uses are excluded from the definitions and statistics here.) Manufactured homes are no longer called "mobile homes" by the industry to avoid confusion with motor homes or travel or camping trailers, which are designed for routine relocation from place to place. These properties have their own codes in the national fire incident data bases. Manufactured homes also should not be confused with modular or prefabricated homes, where major components of a home are manufactured as units off-site, then assembled on-site, where they are subject to the regulations of the local authority. Fires coded as Incident Type 120-123, structure fire in mobile or portable property, are treated as follows in this report: Incident Type ■ How It Is Treated 121 — Mobile home used as fixed residence Included. 120 — Unclassified mobile property used as a fixed property Included if Property Use = 400-429, suggesting fixed residence is most likely property use. 122 — Motor home, camper, or recreational vehicle used as a structure. Excluded because they are a different type of property. 123 — Portable building used at a fixed location, typically for commercial or educational purposes. Excluded. How many fires are missing from the estimates? Table 1-A shows the base estimated annual average of 2007-2011 manufactured home fires and associated losses, along with estimates of other fires that might be relevant but are not included in the base estimate. Manufactured Home Fires, 9/13 2 NFPA Fire Analysis and Research, Quincy, MA Table 1-A. Sensitivity Analysis of Estimates of Potential Components of 2007-2011 Manufactured Home Fire Problem, Annual Averages Civilian Civilian Direct Property Fires Deaths Injuries Damage (in Millions) Base estimate [Incident Type 121; and 11,400 206 434 $179 Incident Type 120 with Property Use 400-429] Estimated confined fires [Incident Type 5,400 0 35 $1 113-118, Property Use 410-419; manufactured home percentage share of confined fires estimated as Base Estimate of manufactured home fires divided by estimated fires with Incident Type 111-112 or 120-123 and Property Use 400-429] Fires coded as Incident Type 111-112, 200 3 14 $4 Property Use 400-429, and Mobile Property Type 17 [analogous to coding used for manufactured home fires pre -1999] Fires coded as Incident Type 122, 800 19 26 $8 Property Use 400-429 [motor home or recreational vehicle] Fires coded as Incident Type 123, Property 200 1 3 $1 Use 400-429 [portable building at fixed location] Manufactured Home Fires, 9/13 3 NFPA Fire Analysis and Research, Quincy, MA Table 1-1. Overview of Manufactured Home Fires Structure Fires Reported to Fire Departments Civilian Deaths Civilian Injuries Direct Property Damage (in Millions) Current Dollars In 2011 Dollars 1980 29,800 413 863 $136 $370 1981 27,200 536 849 $142 $351 1982 28,400 460 1,020 $146 $339 1983 26,400 480 868 $167 $378 1984 26,100 382 815 $194 $418 1985 25,900 545 864 $175 $364 1986 25,500 409 837 $170 $348 1987 23,000 450 800 $140 $277 1988 23,700 507 959 $157 $299 1989 20,400 432 925 $140 $255 1990 19,200 380 750 $171 $294 1991 19,900 367 925 $191* $315* 1992 19,400 391 856 $158 $253 1993 20,300 402 924 $202 $314 1994 19,400 347 876 $149 $226 1995 18,400 437 867 $156 $230 1996 18,100 450 814 $175 $250 1997 17,600 322 654 $159 $223 1998 15,700 200 653 $145 $200 1999 14,400 214 1,519 $130 $175 2000 17,100 336 777 $190 $248 2001 16,900 314 788 $183 $232 2002 16,400 216 546 $167 $209 2003 14,000 299 534 $168 $205 2004 14,500 291 527 $168 $200 2005 12,700 264 502 $165 $190 2006 13,300 205 498 $175 $195 2007 13,100 245 448 $155 $167 2008 12,700 250 420 $195 $203 2009 10,100 206 399 $241* $252* 2010 10,400 168 416 $155 $159 2011 10,800 161 490 $151 $151 * All 1991 home property damage figures are inflated by estimation problems related to the handling of the Oakland fire storm. The 2009 total may be inflated by one fire apparently miscoded as $40 million. Note: These are national estimates of fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Fires are rounded to the nearest hundred, civilian deaths and injuries are expressed to the nearest one, and property damage is rounded to the nearest million dollars. Because of low participation in NFIRS Version 5.0 during 1999-2001, estimates for those years are highly uncertain and must be used with caution. Inflation adjustment to 2011 dollars is done using the consumer price index. From 1999 on, manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in other one- or two-family dwellings. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 4 NFPA Fire Analysis and Research, Quincy, MA Chapter 2. How Safe Are Manufactured Homes? Effects of HUD Standards In 1976, the U.S. Department of Housing and Urban Development (HUD) took jurisdiction over construction standards for manufactured homes. Therefore, pre -1976 and post -1976 manufactured homes are referred to as pre -standard and post -standard manufactured homes, respectively. Most of the requirements of the HUD standards were part of NFPA's voluntary consensus standard for manufactured homes (NFPA 501B) prior to 1976. For this reason and the fact that some of these features (e.g., smoke alarms) are not difficult to retrofit, it cannot be assumed that all pre -1976 manufactured homes lack the features specified in the HUD standards. The introduction of the HUD standards was associated with a drop in the rate of fires per 1,000 manufactured homes (from 2.3 for all pre -1975 manufactured home to 1.5 for all 1975 and newer manufactured homes). There is no evidence that unit age in general is associated with higher rates of fires per thousand manufactured homes. Table 2-1 compares 2007-2011 reported fires by year of unit manufacture to number of units in the manufactured home inventory, from U.S. Census Bureau surveys conducted in odd - numbered years. There is little or no variation in these rates by age, except for the break between 1974 and 1975, which presumably reflects the effects of the HUD standards, introduced during 1976. The same statistics that show no age -of -unit effect on fire rates, apart from the introduction of the HUD standards, also show no continued improvements that might be attributable to refinements in the HUD standards. The rates in Table 2.1 are roughly the same for 1975- 1984, 1985-1994, and 1995 to present. (If the period 2000 to present is considered separately, there is a slight increase in the rate for the newest manufactured homes.) Within the limits of the available data, it appears as if the decline in fire rates in manufactured homes is nearly all explainable in terms of the continued reduction in number and share of occupied manufactured homes built before the 1976 HUD standards became effective or in terms of the impact of changes that are not installed and affect all housing units, not just manufactured homes (e.g. child -resistant lighter, cigarette -resistant mattresses and upholstered furniture). Any other changes have had little or no measurable effect, either because they still affect only a small part of the manufactured home inventory or because their potential impact on fire rates is slight. In 2007-2011, post -HUD -standard manufactured homes had a lower rate of civilian deaths per 100 fires (by 57%). Because current analyses will tend to under -estimate the number of fires and injuries but not the number of deaths. This means death rates per 100 fires are likely to be over-estimated, but the net effect on injury rates per 100 fires is less clear. Also, because only 2% of Manufactured Home Fires, 9/13 5 NFPA Fire Analysis and Research, Quincy, MA manufactured home fires are now reported with year of manufacture, there is much more uncertainty in all the estimates. (See Table 2-A.) This could mean that even a 57% reduction in death rates might not be statistically meaningful, but the estimated 2007-2011 percentage reduction in death rates associated with the HUD standards is similar to the percentage reduction estimated in 1989-1998 (54%), the last years before the changes to NFIRS that affected all estimates of manufactured home fires. This similarity is an encouraging sign that the estimated reduction is at least roughly correct. Table 2-A. Civilian Deaths per 100 Fires in Pre -Standard vs. Post -Standard Manufactured Homes Annual Average Structure Fires Reported to U.S. Fire Departments Year of Manufacture ■ Civilian Deaths Civilian Deaths per 100 Fires per 100 Fires 2007-2011 1989-1998 Pre -standard (Pre -1976) 3.1 2.6 Post -standard (Post -1976) 1.3 1.2 All manufactured homes 1.8 2.0 Percent reduction in post -Standard units 57% 54% Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial tire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. All figures include fires with unknown year of manufacture, which accounted for roughly 98% of reported manufactured home fires in 2007-2011. Source: NFIRS and NFPA survey. Post -standard manufactured homes are more likely than pre -standard manufactured homes to have fires confined to room of origin. Because data from 1999 on appears to miss a significant number of smaller fires, analyses of fire size cannot be done with confidence using recent data. Therefore, the statistics supporting this point are taken from 1989-1998, the latest period before the incident reporting rules changed. This correlates with provisions of the standards that are designed to achieve such confinement. Sections 3280.203 - 3280.206 of the HUD standards provide requirements that are intended to slow or limit the spread of a fire by such means as flame spread rating requirements for interior finish materials on exposed walls, columns, partitions, and ceilings; more targeted flame spread requirements for wall and floor coverings near central heating units or water heaters, interior finishes exposed to cooking ranges, kitchen cabinet surfaces, and plastic bathroom fixtures; and firestopping requirements. Table 2-2 shows these requirements are associated with a measurable difference in the percentage of fires confined to the room of origin. The percentage of fires confined to room of origin was 55% for post -standard manufactured homes and 40% for pre -standard manufactured homes, in 1989-1998. Table 2-2 also shows that smaller fires have much lower average property damage per fires, and so a lower share of fires spreading beyond room of origin will mean a lower overall average loss per fire, all other things being equal. However, the overall average loss per fire Manufactured Home Fires, 9/13 6 NFPA Fire Analysis and Research, Quincy, MA in post -standard manufactured homes is higher than in pre -standard manufactured homes, despite the fact that post -standard units have a smaller share of large fires. The reason is that the average loss per fire for any particular size of fire is higher for post -standard units than for pre -standard units, and these differences are large enough to more than offset the reduced fraction of fires having the larger sizes. One way you can have higher average losses per fire for the same fire size (in area) is if the value per square foot is higher, in contents, furnishings and structure. Post -standard units are newer housing, which probably means, on average, wealthier occupants and more average value per square foot. It is reasonable to assume that the value of the HUD standards in confining more fires to room of origin is still in place. The HUD standards are particularly effective in confining heating and cooking fires to the room of origin. Heating and cooking equipment are singled out for special attention in the HUD standards in the form of the flame spread ratings for surfaces near central heating units, water heaters, and cooking ranges. (The "heating equipment" category also includes fixed and portable space heaters, fireplaces, chimneys, and flues. The "cooking equipment" category also includes separate ovens, microwave ovens, toasters, and a number of other types of portable cooking or warming equipment.) These special provisions should mean that heating and cooking fires would tend to be smaller in post -standard homes. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Figure 2-1. Percent of Fires With Flame Damage Confined to Room of Origin by Cause, 1989-1998 U.S. Pre- vs. Post -Standard Manufactured Homes 79% 58% i 44% 56% 46% i G06K‘r9 nk Krog P\\ VS'° 61% 55% 40% Pre -Standard 1.1 Post -Standard oka\ Note: Each percent is based on a ten-year total of estimated fires, and all percentages are based on reported fires that number more than a thousand before projection from the NFIRS sample. "Total" percents are less than "all known" percents because percents are much lower for fires with unknown cause. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 7 NFPA Fire Analysis and Research, Quincy, MA Figure 2-1 shows that the HUD standards are associated with even more success in confining heating and cooking fires to room of origin than has already been shown for fires of all causes. If certain flame spread requirements are applicable only to the surfaces near a particular hazard, and if use of those requirements leads to smaller fires for fire causes associated with that hazard, then the measure of smaller fire size would be the difference between post - standard and pre -standard manufactured homes in the proportion of fires confined to room of origin. In 1989-1998, this difference was 15 percentage points for all fires and for fires with known cause, and 12 percentage points for fires with known causes other than heating and cooking, which is the best baseline for comparison. Based on this approach, the flame spread requirements for surfaces near heating and cooking equipment appear to be associated with greater success in keeping fires small. The 20 and 21 percentage -point differences, respectively, for these cause classes of fires in 1989-1998 are much larger than the 12 percentage -point difference for fires with other known cause. Smaller fires could actually lead to fewer reported fires, if the smaller sizes allowed occupants to control more fires without needing to call the fire department. This appears to be true for heating equipment fires. Based on 1989-1998 fires, post -HUD -standard manufactured homes have fewer heating equipment fires per 1,000 housing units than pre - standard units, in that heating equipment has a smaller share (17% for post -standard units versus 20% for pre -standard units) of what was already shown to be a lower overall rate of fires per 1,000 housing units (1.2 versus 2.6, as shown in Table 2-A). Smoke alarms mean a lower death rate per 100 fires in post -standard manufactured homes and, less consistently, in pre -standard manufactured homes. Section 3280.208 of the HUD standards requires that at least one smoke alarm be provided in the living area, as well as each room designed for sleeping. This means that smoke alarms have been required in all new manufactured homes since 1976, years before the last states required smoke alarms in other one- or two-family homes. However, available national statistics suggest that a lower percentage of manufactured homes have smoke alarms. The 2011 American Housing Survey found 91.8% of occupied manufactured homes reported having working smoke alarms, compared to 94.6% of all occupied housing units (including multi -family).' Also, the 2004-2005 Consumer Product Safety Commission study of unreported fires found that only 91% of manufactured homes had smoke alarms, compared to 97-98% of either detached sin le family homes, townhouses or row houses, or multi -family housing with unreported fires. In 1989-1998, in post -standard manufactured homes the civilian death rate per 100 fires was 0.9 if smoke alarms were present, 31% less than the 1.3 rate if smoke alarms were not present. In pre -standard manufactured homes, the civilian death rate per 100 fires was 2.4 with smoke alarms in 1989-1998, roughly the same as the 2.3 rate if there were no smoke 1 American Housing Survey, Washington: U.S. Bureau of the Census, 2011, Table 5 -01 -AO. 2 Michael A. Greene and Craig Andres, 2004-2005 National Sample Survey of Unreported Residential Fires, U. S. Consumer Product Safety Commission, July 2009. Manufactured Home Fires, 9/13 8 NFPA Fire Analysis and Research, Quincy, MA alarms. The apparent absence of a smoke alarm effect in pre -standard manufactured homes is at least partly due to the fact that smoke alarms were less likely to operate, when present in a fire large enough to activate them, in pre -standard manufactured homes (62%) than in post - standard manufactured homes (70%). It should be clear that it is important to install smoke alarms and to make sure they are working. Both steps — acquisition and regular maintenance, primarily testing and battery replacement — save lives. Since 1976, every manufactured home sold should have included installed, hard -wired smoke alarms. Roughly 20% of 2007-2011 occupied manufactured homes were constructed before 1976, and those units accounted for roughly 30% of 2007- 2011 manufactured home fires. (See Table 2-1, which includes 1975-1976 with other post - 1976 years, because the data on age of manufactured homes in use is grouped that way.) However, half of manufactured home fires (51% in 2007-2011) are consistently reported as having no smoke alarm present. Because 51% is much higher than 30%, this suggests a high rate of disabling and removal of smoke alarms in post -standard units. In the manufactured home fires where smoke alarms were present and the fire was large enough to activate an operational smoke alarm, smoke alarms operated 78% of the time. Manufactured Homes vs. Other Homes Manufactured homes have roughly the same civilian fire death rate per 100,000 occupied housing units as other one- or two-family homes. Table 2-3 provides a comparison of 2007-2011 fire experience rates for manufactured homes and other one- or two-family homes, relative to occupied year-round units. The death rate for manufactured homes (3.0) is at the upper end of the range of estimated death rate for other one- or two-family homes (2.7-3.0). The range is necessary because readily available data on housing units combine all housing with 2-4 units in one -group. The range reflects exclusion or inclusion of these housing units in estimates of the total number of housing units in buildings with 1-2 housing units. Statistics on fires are not limited to occupied housing. The figures on numbers of manufactured homes may include some trailers. There is a range for one- or two-family homes other than manufactured homes. The high end of this range includes and the low end excludes housing units in two- to four -family buildings, because two-family dwellings are not shown separately, and so one must either include or exclude all two- to four -family dwellings. Manufactured homes show a lower rate of fires per 1,000 occupied housing units, offsetting a higher rate of deaths per 100 fires. Manufactured homes have a lower rate of civilian fire injuries per 100,000 occupied housing units than other one- or two-family homes, because manufactured homes have not only a lower fire rate per 1,000 housing units but also a lower injury rate per 100 fires. If all pre -HUD -standard manufactured homes were removed from the inventory, the fire death rate per 100,000 occupied manufactured homes would be estimated at 1.9, or well below the range estimated for the rate for other one- or two-family homes. Manufactured Home Fires, 9/13 9 NFPA Fire Analysis and Research, Quincy, MA Roughly one-fifth of the inventory is still of pre -standard age. Post -standard units have a roughly one-third lower fire rate per 1,000 occupied units (Table 2-1) than pre -standard units and a roughly one-half lower death rate per 100 fires (Table 2-A). These relationships yield a fire death rate for post -standard units of 1.9 deaths per 100,000 occupied manufactured homes (and a pre -standard unit death rate that is more than three times the rate for post -standard units). In other words, the fire death rate per 100,000 housing units in manufactured homes is projected to decline to well below the rate in other one- or two-family homes when all pre - standard units leave the manufactured home inventory. Manufactured homes tend to be smaller, which could support more rapid fire growth to flashover. In 2011, the median size for occupied manufactured homes was 1,120 square feet, compared to 1,800 square feet for all occupied housing units.3 Manufactured homes therefore averaged nearly two-thirds the space of an average occupied housing unit but 90% of the average number of rooms (5.1 vs. 5.7). This implies the average room sizes were smaller in manufactured homes, which can mean that flashover can occur more rapidly in manufactured homes than in other housing units. The HUD standards affect some of the paths for rapid fire growth through restrictions on the type of interior finishes, but early involvement of some major fuel items, such as upholstered furniture or mattresses and bedding, can support fire growth to flashover even without involvement of the room interior finishes. Occupants of manufactured homes are more likely to have risk factors for fire than households in general. In 2011, for example, the percentage of households falling below the poverty line was 25% for occupied manufactured homes compared to 16% for all occupied housing units.4 Also 28% of households occupying manufactured homes included at least one person aged 65 or older, compared to 25% of households in general. In 28% of occupied manufactured homes, the householder did not have a high school diploma, compared to 13% of all households combined. In 2007-2011 manufactured home fires, the heating equipment share is higher and the cooking equipment share is lower than for non -confined fires in one- or two-family homes. Tables 2-4 to 2-7 show 2007-2011 leading causes, for manufactured home fires and non - confined structure fires in all types of one- or two-family homes. The category of all one- or two-family homes includes most but not all fires coded as manufactured home fires. Heating and cooking equipment are by far the top two major causes for fires, but their relative importance is slightly different. The manufactured home heating equipment share (19%) is higher than the heating equipment share for one- or two-family homes (14%). Note that the heating equipment shares and especially the cooking equipment shares are much higher for one- or two-family homes when confined fires are included. The same might be 3 American Housing Survey for the United States: 2011, U.S. Census Bureau website, Table C -02 -AO. 4 American Housing Survey for the United States: 2011, U.S. Census Bureau website, Table C -01 -AO. Manufactured Home Fires, 9/13 10 NFPA Fire Analysis and Research, Quincy, MA true for manufactured homes if it were possible to identify confined fires in manufactured homes. The case for fire sprinklers is as strong for manufactured homes as it is for other one- or two-family homes. Manufactured homes currently have roughly the same fire death rate per 100,000 occupied housing units as other one- or two-family homes. With comparable risk in both types of homes, the case for sprinklers as a proven strategy for additional risk reduction is as strong for manufactured homes as for other homes, and model codes have already concluded that the case for sprinklers in other homes is strong enough that they have required that sprinklers be installed in all new homes. Manufactured Home Fires, 9/13 11 NFPA Fire Analysis and Research, Quincy, MA Table 2-1. Rates of U.S. Manufactured Home Fires per 1,000 Occupied Manufactured Homes, by Year of Manufacture, 2007-2011 Year of Manufacture Fires Occupied Manufactured Homes (in Thousands) i Rate 1995 -present 3,700 (33%) 2,600 (37%) 1.5 1985-1994 2,100 (18%) 1,600 (22%) 1.3 1975-1984 2,400 (21%) 1,500 (21%) 1.6 1970-1974 1,800 (16%) 800 (11%) 2.2 Before 1970 1,400 (13%) 600 (8%) 2.5 Total 11,400 (100%) 7,000 (100%) 1.6 Note: These are based on national estimates of fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. Sums may not equal totals because of rounding error. Fires are not limited to occupied units. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in other one- or two-family homes. The average number of occupied manufactured homes in 2007-2011 is calculated as a weighted average of available numbers in 2007, 2009, and 2011. This calculation assumes that the average number of manufactured homes in 2007 and 2009 is a good estimate of the number in 2008, and the average number in 2009 and 2011 is a good estimate of the number in 2010. This will be roughly true if the annual change in the number of new units introduced is steady, except for the newest units, where this approach will slightly underestimate the size of the inventory and so slightly overestimate the fire rate per thousand units for the range with the most current year. Sources: NFIRS and NFPA Survey; American Housing Survey for the United States in, 2007, 2009, 2011, U.S. Census Bureau website. Manufactured Home Fires, 9/13 12 NFPA Fire Analysis and Research, Quincy, MA Table 2-2. 1989-1998 Loss per Fire, by Extent of Flame Damage Pre -Standard vs. Post -Standard Manufactured Homes Structure Fires Reported to U.S. Fire Departments Pre -Standard (Pre -1976) Post -Standard (Post -1976) Extent of Loss per Fire Loss per Fire Flame Damage Fires (in Thousands) Fires (in Thousands) Confined to room of origin Confined to building of origin but extended 1,040 (40%) 1,310 (51%) $2.9 1,210 (55%) $5.8 $12.4 880 (40%) $20.3 beyond room of origin Extended beyond building of origin 230 (9%) $13.4 110 (5%) $20.4 All fires with known extent of flame damage 2,670 (100%) $8.5 2,300 (100%) $12.4 and known year of manufacture Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Fires are estimated to the nearest ten, and direct property damage is estimated to the nearest million dollars. Property damage has not been adjusted for inflation. Statistics do not include any proportional allocation of fires with unknown year of manufacture. Totals may not equal sums because of rounding. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 13 NFPA Fire Analysis and Research, Quincy, MA Table 2-3. U.S. Manufactured Homes vs. Other One- or Two -Family Homes Fire Experience Rates (Excluding Fires Reported as Confined Fires), 2007-2011 Measure J. Manufactured Homes Other One- or Two -Family Homes Fires (2007-2011 annual average) 11,400 186,900 Civilian deaths (2007-2011 annual 206 2,372 average) Civilian injuries (2007-2011 annual 434 11,016 average) Number of housing units (in millions) (2008 estimated as average of 2007 7.0* 79.1 — 87.4** and 2009, and 2010 estimated as average of 2009 and 2011) Civilian deaths per 100 fires 1.8 1.3 Civilian injuries per 100 fires 3.8 5.9 Fires per 1,000 housing units 1.6 2.1 — 2.4 Civilian deaths per 100,000 3.0 2.7 — 3.0 housing units Civilian injuries per 100,000 6.2 12.6 — 13.9 housing units WARNING: Because of limits of analysis forcing exclusion of confined fires, only the statistics on deaths per 100,000 housing units are considered reliable. The other statistics are provided for comparability between manufactured homes and other one - or two-family homes. The relative comparisons should be in the right direction even if the actual magnitudes are off. *This is an upper bound because the definition includes "trailers," which probably is not limited to the trailer coaches or other manufactured housing referred to by terms including the word "trailer." **The lower and higher figures in this range reflect the exclusion and inclusion of housing units in buildings housing 2-4 housing units. Buildings having just two housing units, which correspond to the fire statistics on one- and two-family dwellings, cannot be isolated. Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Fires are estimated to the nearest hundred, and civilian deaths and injuries are estimated to the nearest one. Fires and fire losses are not limited to occupied units. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. Fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in other one- or two-family dwellings. Sources: NFIRS and NFPA Survey; American Housing Survey, Washington: U.S. Bureau of the Census, 2007, 2009, and 2011. Manufactured Home Fires, 9/13 14 NFPA Fire Analysis and Research, Quincy, MA Table 2-4. Fires in Manufactured Homes vs. One- or Two -Family Homes, by Leading Cause Annual Average of Structure Fires Reported to U.S. Fire Departments in 2007-2011 (Excluding Confined Fires) One- or Manufactured Homes Two -Family Homes Heating equipment 2,100 (19%) 22,400 (14%) Cooking equipment 1,700 (15%) 27,600 (17%) Electrical distribution or lighting equipment 1,400 (12%) 20,300 (12%) Intentional 1,000 (9%) 15,100 (9%) Clothes dryer or washer 900 (8%) 12,400 (8%) Exposure (to other hostile fire) 700 (6%) 10,100 (6%) Smoking material (i.e., lighted tobacco product) 600 (5%) 9,100 (6%) Hot ember or ash 600 (5%) 10,600 (6%) Candle 400 (4%) 7,800 (5%) Playing with fire 300 (3%) 4,700 (3%) Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Not all causes are shown, and the same fire may be counted under more than one cause. Statistics include proportional allocation of fires coded as unknown equipment involved in ignition, unknown Cause, unknown heat source, or unknown or none under factor contributing to ignition, as appropriate. Statistics on one- or two-family home fires are taken from Marty Ahrens, Home Structure Fires, April 2013, and may include most of the manufactured home fires. One- or two-family home fires are identified by Incident Type 110-129 and Property Use 410-429. This definition includes all the fires counted here under manufactured homes except for those coded as Incident Type 120-121 with Property Use 400 and those coded as Incident Type 121 with Property Use # 400-429. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in all one - or two-family homes. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 15 NFPA Fire Analysis and Research, Quincy, MA Table 2-5. Civilian Fire Deaths in Manufactured Homes vs. One- or Two -Family Homes, by Leading Cause Annual Average of Structure Fires Reported to U.S. Fire Departments in 2007-2011 (Excluding Confined Fires) One- or Manufactured Home Two -Family Homes Heating equipment 73 (35%) 480 (22%) Smoking material (i.e., lighted tobacco product) 47 (23%) 450 (21%) Electrical distribution or lighting equipment 31 (15%) 270 (13%) Cooking equipment 31 (15%) 320 (15%) Intentional 22 (11%) 290 (13%) Clothes dryer or washer 7 (4%) 30 (1%) Hot ember or ash 6 (3%) 100 (5%) Candle 2 (1%) 100 (5%) Playing with heat source 1 (1%) 70 (3%) Exposure (to other hostile fire) 0 (0%) 10 (0%) Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Not all causes are shown, and the same fire may be counted under more than one cause. Statistics include proportional allocation of fires coded as unknown equipment involved in ignition, unknown Cause, unknown heat source, or unknown or none under factor contributing to ignition, as appropriate. Statistics on one- or two-family home fires are taken from Marty Ahrens, Home Structure Fires, April 2013, and may include most of the manufactured home fires. One- or two-family home fires are identified by Incident Type 110-129 and Property Use 410-429. This definition includes all the fires counted here under manufactured homes except for those coded as Incident Type 120-121 with Property Use 400 and those coded as Incident Type 121 with Property Use # 400-429. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in all one - or two-family homes. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 16 NFPA Fire Analysis and Research, Quincy, MA Table 2-6. Civilian Fire Injuries in Manufactured Homes vs. One- or Two -Family Homes, by Leading Cause Annual Average of Structure Fires Reported to U.S. Fire Departments in 2007-2011 (Excluding Confined Fires) M=IOne- or Manufactured Homes Two -Family Homes Cooking equipment 105 (24%) 2,210 (28%) Smoking material (i.e., lighted tobacco product) 68 (16%) 790 (10%) Heating equipment 60 (14%) 1,200 (15%) Clothes dryer or washer 32 (7%) 370 (5%) Electrical distribution or lighting equipment 31 (7%) 720 (9%) Intentional 27 (6%) 570 (7%) Playing with heat source 25 (6%) 540 (7%) Candle 16 (4%) 610 (8%) Hot ember or ash 14 (3%) 330 (4%) Exposure (to other hostile fire) 3 (1%) 60 (1%) Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Injuries are shown to the nearest one for manufactured homes and the nearest ten for other one- or two-family homes. Not all causes are shown and the same fire may be counted under more than one cause. Statistics include proportional allocation of fires coded as unknown equipment involved in ignition, unknown Cause, unknown heat source, or unknown or none under factor contributing to ignition, as appropriate. Statistics on one- or two-family home fires are taken from Marty Ahrens, Home Structure Fires, April 2013, and may include most of the manufactured home fires. One- or two-family home fires are identified by Incident Type 110-129 and Property Use 410-429. This definition includes all the fires counted here under manufactured homes except for those coded as Incident Type 120-121 with Property Use 400 and those coded as Incident Type 121 with Property Use # 400-429. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in all one - or two-family dwellings. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 17 NFPA Fire Analysis and Research, Quincy, MA Table 2-7. Direct Property Damage (in Millions) in Fires in Manufactured Homes vs. One- or Two -Family Homes, by Leading Cause Annual Average of Structure Fires Reported to U.S. Fire Departments in 2007-2011 (Excluding Confined Fires) One- or Manufactured Homes Two- Family Homes Candle $39 (22%) $354 (6%) Heating equipment $22 (12%) $788 (13%) Cooking equipment $14 (8%) $593 (10%) Clothes dryer or washer $14 (8%) $181 (3%) Electrical distribution or lighting equipment $12 (6%) $685 (12%) Exposure (to other hostile fire) $10 (6%) $789 (13%) Intentional $10 (5%) $489 (8%) Smoking material (i.e., lighted tobacco product) $7 (4%) $306 (5%) Hot ember or ash $7 (4%) $363 (6%) Playing with fire $ 5 (3%) $128 (2%) Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to Federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Damages are shown to the nearest million dollars and are not adjusted for inflation. Not all causes are shown, and the same fire may be counted under more than one cause. Statistics include proportional allocation of fires coded as unknown equipment involved in ignition, unknown Cause, unknown heat source, or unknown or none under factor contributing to ignition, as appropriate. Statistics on one- or two-family home fires are taken from Marty Ahrens, Home Structure Fires, April 2013, and may include most of the manufactured home fires. One- or two-family home fires are identified by Incident Type 110-129 and Property Use 410-429. This definition includes all the fires counted here under manufactured homes except for those coded as Incident Type 120-121 with Property Use 400 and those coded as Incident Type 121 with Property Use # 400-429. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in all one - or two-family homes. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 18 NFPA Fire Analysis and Research, Quincy, MA Chapter 3. Other Characteristics of Manufactured Home Fires Manufactured home fires and associated civilian deaths are more frequent on weekends than on weekdays. See Figure 3-1. This pattern is also seen in overall one- or two-family home structure fires. 20% 18% 16% ai 14% c°Ao 12% ✓ 10% 8% a 6% 4% 2% 0% Figure 3-1. Manufactured Home Fires 15% 15% and Deaths, 2007-2011, by Day of Week 19% 17% 14% 14% 14% 14% 14% 14% 15% 12% • 12% J 10% �aaJ o�aaJ �yaaJ e,6b* t�6?" C•aaA Day of Week Source: NFIRS and NFPA survey. • Fires ▪ Deaths Manufactured home fires and associated civilian deaths peak during the winter months, when heating equipment fires are added to other, less seasonal types of fires. See Figure 3-2. This pattern is also seen in overall one- or two-family home structure fires. Figure 3-2. Manufactured Home Fires and Deaths, 2007-2011, by Month of Year 16% , 15% Fires 14% 13% Deaths 12% 4% 2% 0% 1% 9% 12% 9% 8% 7% 8% 8% 8% 8% 7% 6% 5% 4% 7% 6% 8%7% 8. 9/ 9% Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 19 NFPA Fire Analysis and Research, Quincy, MA Manufactured home fires peak in the afternoon and evening, while associated civilian deaths peak after midnight. See Table 3-1. This pattern is also seen in overall one- or two-family home structure fires. The leading items first ignited in manufactured home fires are very similar to the leading items first ignited in non -confined fires in other one- or two-family homes. See Table 3-2. The items not shown on Table 3-2 that have larger shares of fires in one- or two- family homes than some items on the Table 3-2 list include flammable or combustible liquids or gases, unclassified structural component or finish, and clothing. There also are no dramatic differences in leading areas of origin between manufactured home fires and fires involving other one- or two-family homes, as Table 3-3 shows. The areas not shown on Table 3-3 that have larger shares of fires in one- or two-family homes than some items on the Table 3-3 list include attic or ceiling/roof assembly or concealed space, garage, and exterior balcony or outside porch. Manufactured Home Fires, 9/13 20 NFPA Fire Analysis and Research, Quincy, MA Table 3-1. Manufactured Home Fires, by Hour of Day Annual Average of 2007-2011 Structure Fires Reported to U.S. Fire Departments Direct Civilian Civilian Property Damage Deaths Injuries (in Millions) Midnight — 12:59 a.m. 460 (4%) 13 (7%) 24 (5%) $22 (12%) 1:00 — 1:59 a.m. 430 (4%) 13 (7%) 23 (5%) $7 (4%) 2:00 — 2:59 a.m. 410 (4%) 16 (8%) 24 (6%) $7 (4%) 3:00 — 3:59 a.m. 390 (3%) 10 (5%) 23 (5%) $7 (4%) 4:00 — 4:59 a.m. 320 (3%) 29 (14%) 21 (5%) $5 (3%) 5:00 — 5:59 a.m. 300 (3%) 8 (4%) 10 (2%) $4 (3%) 6:00 — 6:59 a.m. 280 (2%) 10 (5%) 12 (3%) $5 (3%) 7:00 — 7:59 a.m. 290 (3%) 9 (4%) 16 (4%) $4 (2%) 8:00 — 8:59 a.m. 370 (3%) 7 (3%) 20 (5%) $6 (3%) 9:00 — 9:59 a.m. 400 (3%) 8 (4%) 17 (4%) $5 (3%) 10:00 — 10:59 a.m. 460 (4%) 7 (3%) 20 (5%) $8 (5%) 11:00 — 11:59 a.m. 490 (4%) 4 (2%) 12 (3%) $9 (5%) Noon — 12:59 p.m. 560 (5%) 3 (1%) 21 (5%) $8 (4%) 1:00 — 1:59 p.m. 580 (5%) 4 (2%) 13 (3%) $8 (5%) 2:00 — 2:59 p.m. 600 (5%) 6 (3%) 17 (4%) $8 (5%) 3:00 — 3:59 p.m. 610 (5%) 6 (3%) 20 (5%) $8 (4%) 4:00 — 4:59 p.m. 600 (5%) 4 (2%) 19 (4%) $7 (4%) 5:00 — 5:59 p.m. 590 (5%) 4 (2%) 16 (4%) $8 (4%) 6:00 — 6:59 p.m. 590 (5%) 4 (2%) 16 (4%) $8 (4%) 7:00 — 7:59 p.m. 560 (5%) 6 (3%) 17 (4%) $7 (4%) 8:00 — 8:59 p.m. 570 (5%) 6 (3%) 18 (4%) $6 (3%) 9:00 — 9:59 p.m. 560 (5%) 10 (5%) 19 (4%) $7 (4%) 10:00 — 10:59 p.m. 520 (5%) 11 (5%) 20 (5%) $7 (4%) 11:00 — 11:59 p.m. 470 (4%) 7 (3%) 16 (4%) $7 (4%) Total 11,400 (100%) 206 (100%) 434 (100%) $179 (100%) Note: These are tires reported to U.S. municipal tire departments and so exclude tires reported only to federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Fire estimated to the nearest ten for manufactured homes. Civilian deaths and injuries are estimated to the nearest one for manufactured homes. Direct property damage has been estimated to the nearest million dollars. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined tires) have Mobile Property Type blank, making it impossible to estimate relevant tires of this type. For this reason, tires coded as confined tires are excluded from comparisons of manufactured home fires to fires in other one- or two-family dwellings. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 21 NFPA Fire Analysis and Research, Quincy, MA Table 3-2. Leading Items First Ignited in Fires in Manufactured Homes and One- or Two -Family Homes Annual Average of 2007-2011 Structure Fires Reported to Fire Departments A. Manufactured Homes, Probably Excluding Confined Fires Item First Ignited Fires Civilian Deaths Civilian Injuries Direct Property Damage (in Millions) Wire or cable insulation Cooking materials Unclassified item first ignited 1,290 (11%) 850 (7%) 810 (7%) 27 (6%) 62 (14%) 24 (5%) $13 (8%) $11 (6%) $11 (6%) Structural material or framing 750 (7%) 12 (6%) 17 (4%) $13 (7%) Interior wall covering 710 (6%) 16 (8%) 23 (5%) $20 (11%) Exterior wall covering Mattress or bedding Appliance housing or casing 650 (6%) 520 (5%) 480 (4%) 11 (2%) 47 (11%) 15 (3%) Insulation within structural area 470 (4%) 1 (0%) 8 (2%) $5 (3%) Floor covering Upholstered furniture 420 (4%) 410 (4%) 16 (8%) 14 (3%) 21 (10%) 27 (6%) $7 (4%) $9 (5%) B. One- or Two -Family Homes, Excluding Confined Fires Item First Ignited Fires Civilian Deaths Civilian Injuries Direct Property Damage (in Millions) Wire or cable insulation Cooking materials Unclassified item first ignited 13,700 14,600 8,400 100 (5%) 340 (4%) 100 (5%) 1,460 (18%) 90 (4%) 300 (4%) $386 (6%) $317 (5%) $292 (5%) Structural material 18,000 (11%) 130 (6%) 340 (4%) $940 (16%) or framing Interior wall covering 6,600 (4%) 90 (4%) 220 (3%) $288 (5%) Exterior wall covering Mattress or bedding Appliance housing Insulation within structural area 12,100 7,200 4,800 5,400 30 (1%) 250 (11%) 30 (1%) 10 (0%) 170 (2%) 910 (11%) 170 (2%) 80 (1%) $401 $269 $115 $134 Floor covering 4,200 (3%) 100 (4%) 210 (3%) Upholstered furniture 4,800 (3%) 370 (17%) 520 (7%) $149 (2%) $251 (4%) Manufactured Home Fires, 9/13 22 NFPA Fire Analysis and Research, Quincy, MA Table 3-2. Leading Items First Ignited in Fires in Manufactured Homes and One- or Two -Family Homes Annual Average of 2007-2011 Structure Fires Reported to Fire Departments (Continued) C. One- or Two -Family Homes, All Structure Fires Including Confined Fires Direct Civilian Civilian Property Damage Item First Ignited Fires Deaths Injuries (in Millions) Wire or cable insulation 15,200 (6%) 100 (5%) 350 (4%) $387 (6%) Cooking materials 54,700 (21%) 100 (5%) 2,080 (23%) $326 (5%) Unclassified item first 21,800 (8%) 90 (4%) 350 (4%) $295 (5%) ignited Structural material or 18,400 (7%) 130 (6%) 340 (4%) $941 (16%) framing Interior wall covering 6,800 (3%) 90 (4%) 220 (3%) $288 (5%) Exterior wall covering 12,300 (5%) 30 (1%) 170 (2%) $401 (7%) Mattress or bedding 7,400 (3%) 250 (11%) 910 (10%) $269 (5%) Appliance housing 9,100 (3%) 30 (1%) 200 (2%) $117 (2%) Insulation within 5,500 (2%) 10 (0%) 80 (1%) $134 (2%) structural area Floor covering 4,300 (2%) 100 (4%) 210 (2%) $149 (2%) Upholstered furniture 4,900 (2%) 370 (17%) 520 (6%) $251 (4%) Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of one unusually serious fire. Fires are estimated to the nearest ten for manufactured homes and the nearest hundred for other one- or two-family homes. Civilian deaths and injuries are estimated to the nearest one for manufactured homes and the nearest ten for other one- or two-family homes. Direct property damage has been estimated to the nearest million dollars. Statistics include proportional allocation of fires coded as item first ignited unknown. Statistics on one- or two-family home fires are taken from Marty Ahrens, Home Structure Fires, April 2013. One- or two-family home fires are identified by Incident Type 110-129 and Property Use 410-429. This definition includes all the fires counted here under manufactured homes except for those coded as Incident Type 120-121 with Property Use 400 and those coded as Incident Type 121 with Property Use # 400-429. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in all one - or two-family dwellings. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 23 NFPA Fire Analysis and Research, Quincy, MA Table 3-3. Leading Areas of Origin in Fires in Manufactured Homes and One- or Two -Family Homes Annual Average of 2007-2011 Structure Fires Reported to Fire Departments A. Manufactured Homes, Probably Excluding Confined Fires Direct Civilian Civilian Property Damage iArea of Origin Fires Deaths Injuries (in Millions) Kitchen 2,260 (20%) 27 (13%) 126 (29%) $33 (18%) Bedroom 1,560 (14%) 44 (21%) 94 (22%) $30 (17%) Living room, family room 820 (7%) 60 (29%) 63 (14%) $18 (10%) or den Unclassified function area 620 (5%) 25 (12%) 44 (10%) $12 (7%) Laundry room or area 550 (5%) 6 (3%) 11 (2%) $7 (4%) Crawl space or substructure 550 (5%) 2 (1%) 7 (2%) $6 (3%) space Unclassified area of origin 480 (4%) 5 (3%) 6 (1%) $6 (4%) Exterior wall surface 460 (4%) 1 (1%) 6 (1%) $5 (3%) Unclassified structural area 460 (4%) 8 (4%) 9 (2%) $8 (5%) Bathroom 420 (4%) 3 (2%) 10 (2%) $6 (3%) Wall assembly or concealed 390 (3%) 1 (0%) 3 (1%) $8 (4%) space Heating equipment room 390 (3%) 4 (2%) 4 (1%) $4 (2%) or area B. One- or Two -Family Homes, Excluding Confined Fires Direct Civilian Civilian Property Damage Area of Origin Fires Deaths Injuries ih (in Millions) Kitchen 29,800 (18%) 320 (15%) 2,170 (27%) $762 (13%) Bedroom 20,800 (13%) 520 (24%) 1,770 (22%) $775 (13%) Living room, family 10,400 (6%) 520 (24%) 950 (12%) $484 (8%) room, or den Unclassified function 6,900 (4%) 220 (10%) 460 (6%) $302 (5%) area Laundry room or area 8,200 (5%) 30 (2%) 270 (3%) $188 (3%) Crawl space or 4,500 (3%) 50 (2%) 170 (2%) $168 (3%) substructure space Unclassified area of 4,100 (3%) 40 (2%) 70 (1%) $127 (2%) origin Exterior wall surface 8,200 (5%) 10 (0%) 110 (1%) $172 (3%) Unclassified structural 4,700 (3%) 70 (3%) 130 (2%) $247 (4%) area Bathroom 4,800 (3%) 30 (1%) 180 (2%) $96 (2%) Wall assembly or 6,200 (4%) 30 (1%) 110 (1%) $196 (3%) concealed space Heating equipment room 2,800 (2%) 20 (1%) 110 (1%) $101 (2%) or area Manufactured Home Fires, 9/13 24 NFPA Fire Analysis and Research, Quincy, MA Table 3-3. Leading Areas of Origin in Fires in Manufactured Homes and One- or Two -Family Homes Annual Average of 2007-2011 Structure Fires Reported to Fire Departments (Continued) C. One- or Two -Family Homes, All Structure Fires Including Confined Fires Direct Civilian Civilian Property Damage Area of Origin Fires Deaths Injuries (in Millions) Kitchen 85,000 (33%) 330 (15%) 2,970 (33%) $776 (13%) Bedroom 21,200 (8%) 520 (24%) 1,780 (20%) $775 (13%) Living room, family 10,900 (4%) 520 (24%) 960 (11%) $484 (8%) room or den Unclassified function 7,500 (3%) 220 (10%) 470 (5%) $302 (5%) area Laundry room or area 8,900 (3%) 30 (2%) 270 (3%) $188 (3%) Crawl space or 4,900 (2%) 50 (2%) 180 (2%) $168 (3%) substructure space Unclassified area of 6,100 (2%) 40 (2%) 70 (1%) $127 (2%) origin Exterior wall surface 8,300 (3%) 10 (0%) 110 (1%) $172 (3%) Unclassified structural 5,000 (2%) 70 (3%) 140 (2%) $247 (4%) area Bathroom 5,200 (2%) 30 (1%) 190 (2%) $97 (2%) Wall assembly or 6,300 (2%) 30 (1%) 110 (1%) $196 (3%) concealed space Heating equipment room 5,300 (2%) 20 (1%) 130 (1%) $102 (2%) or area Note: These are fires reported to U.S. municipal fire departments and so exclude fires reported only to federal or state agencies or industrial fire brigades. National estimates are projections. Casualty and loss projections can be heavily influenced by the inclusion or exclusion o f one unusually serious fire. Fires are estimated to the nearest ten for manufactured homes and the nearest hundred for other one- or two-family homes. Civilian deaths and injuries are estimated to the nearest one for manufactured homes and the nearest ten for other one- or two-family homes. Direct property damage has been estimated to the nearest million dollars. Statistics include proportional allocation of fires coded as area of origin unknown. Statistics on one- or two-family home fires are taken from Marty Ahrens, Home Structure Fires, April 2013. One- or two-family home fires are identified by Incident Type 110-129 and Property Use 410-429. This definition includes all the fires counted here under manufactured homes except for those coded as Incident Type 120-121 with Property Use 400 and those coded as Incident Type 121 with Property Use # 400-429. Manufactured home fires are identified as Incident Type 121 with any Property Use or Incident Type 120 with Property Use 400-429. Manufactured home fires coded as Incident Type 110-118 with Mobile Property Type 17 are not included because nearly all fires with Incident Type 113-118 (confined fires) have Mobile Property Type blank, making it impossible to estimate relevant fires of this type. For this reason, fires coded as confined fires are excluded from comparisons of manufactured home fires to fires in all one - or two-family dwellings. Source: NFIRS and NFPA survey. Manufactured Home Fires, 9/13 25 NFPA Fire Analysis and Research, Quincy, MA Manufactured Home Fires, 9/13 26 NFPA Fire Analysis and Research, Quincy, MA Appendix A. How National Estimates Statistics Are Calculated The statistics in this analysis are estimates derived from the U.S. Fire Administration's (USFA's) National Fire Incident Reporting System (NFIRS) and the National Fire Protection Association's (NFPA's) annual survey of U.S. fire departments. NFIRS is a voluntary system by which participating fire departments report detailed factors about the fires to which they respond. Roughly two-thirds of U.S. fire departments participate, although not all of these departments provide data every year. Fires reported to federal or state fire departments or industrial fire brigades are not included in these estimates. NFIRS provides the most detailed incident information of any national database not limited to large fires. NFIRS is the only database capable of addressing national patterns for fires of all sizes by specific property use and specific fire cause. NFIRS also captures information on the extent of flame spread, and automatic detection and suppression equipment. For more information about NFIRS visit http://www.nfirs.fema.gov/. Copies of the paper forms may be downloaded from http://www.nfirs.fema.gov/documentation/design/NF1RS Paper Forms2 0 0 8 . p df. NFIRS has a wide variety of data elements and code choices. The NFIRS database contains coded information. Many code choices describe several conditions. These cannot be broken down further. For example, area of origin code 83 captures fires starting in vehicle engine areas, running gear areas or wheel areas. It is impossible to tell the portion of each from the coded data. Methodology may change slightly from year to year. NFPA is continually examining its methodology to provide the best possible answers to specific questions, methodological and definitional changes can occur. Earlier editions of the same report may have used different methodologies to produce the same analysis, meaning that the estimates are not directly comparable from year to year. NFPA's fire department experience survey provides estimates of the big picture. Each year, NFPA conducts an annual survey of fire departments which enables us to capture a summary of fire department experience on a larger scale. Surveys are sent to all municipal departments protecting populations of 50,000 or more and a random sample, stratified by community size, of the smaller departments. Typically, a total of roughly 3,000 surveys are returned, representing about one of every ten U.S. municipal fire departments and about one third of the U.S. population. The survey is stratified by size of population protected to reduce the uncertainty of the final estimate. Small rural communities have fewer people protected per department and are less likely to respond to the survey. A larger number must be Manufactured Home Fires, 9/13 27 NFPA Fire Analysis and Research, Quincy, MA surveyed to obtain an adequate sample of those departments. (NFPA also makes follow-up calls to a sample of the smaller fire departments that do not respond, to confirm that those that did respond are truly representative of fire departments their size.) On the other hand, large city departments are so few in number and protect such a large proportion of the total U.S. population that it makes sense to survey all of them. Most respond, resulting in excellent precision for their part of the final estimate. The survey includes the following information: (1) the total number of fire incidents, civilian deaths, and civilian injuries, and the total estimated property damage (in dollars), for each of the major property use classes defined in NFIRS; (2) the number of on -duty firefighter injuries, by type of duty and nature of illness; 3) the number and nature of non -fire incidents; and (4) information on the type of community protected (e.g., county versus township versus city) and the size of the population protected, which is used in the statistical formula for projecting national totals from sample results. The results of the survey are published in the annual report Fire Loss in the United States. To download a free copy of the report, visit http://www.nfpa.org/assets/files/PDF/OS.fireloss.pdf. Projecting NFIRS to National Estimates As noted, NFIRS is a voluntary system. Different states and jurisdictions have different reporting requirements and practices. Participation rates in NFIRS are not necessarily uniform across regions and community sizes, both factors correlated with frequency and severity of fires. This means NFIRS may be susceptible to systematic biases. No one at present can quantify the size of these deviations from the ideal, representative sample, so no one can say with confidence that they are or are not serious problems. But there is enough reason for concern so that a second database -- the NFPA survey -- is needed to project NFIRS to national estimates and to project different parts of NFIRS separately. This multiple calibration approach makes use of the annual NFPA survey where its statistical design advantages are strongest. Scaling ratios are obtained by comparing NFPA's projected totals of residential structure fires, non-residential structure fires, vehicle fires, and outside and other fires, and associated civilian deaths, civilian injuries, and direct property damage with comparable totals in NFIRS. Estimates of specific fire problems and circumstances are obtained by multiplying the NFIRS data by the scaling ratios. Reports for incidents in which mutual aid was given are excluded from NFPA's analyses. Analysts at the NFPA, the USFA and the Consumer Product Safety Commission developed the specific basic analytical rules used for this procedure. "The National Estimates Approach to U.S. Fire Statistics," by John R. Hall, Jr. and Beatrice Harwood, provides a more detailed explanation of national estimates. Manufactured Home Fires, 9/13 28 NFPA Fire Analysis and Research, Quincy, MA Version 5.0 of NFIRS, first introduced in 1999, used a different coding structure for many data elements, added some property use codes, and dropped others. The essentials of the approach described by Hall and Harwood are still used, but some modifications have been necessary to accommodate the changes in NFIRS 5.0. Figure A.1 shows the percentage of fires originally collected in the NFIRS 5.0 system. Each year's release version of NFIRS data also includes data collected in older versions of NFIRS that were converted to NFIRS 5.0 codes. 100% - 80% - 60% - 40% - 20% - 0% Figure A.1. Fires Originally Collected in NFIRS 5.0 by Year 97% 99% 21% 7% 48% 65% 79% 88% 94% 94% 100% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 From 1999 data on, analyses are based on scaling ratios using only data originally collected in NFIRS 5.0: NFPA survey projections NFIRS totals (Version 5.0) For 1999 to 2001, the same rules may be applied, but estimates for these years in this form will be less reliable due to the smaller amount of data originally collected in NFIRS 5.0; they should be viewed with extreme caution. NFIRS 5.0 introduced six categories of confined structure fires, including: • cooking fires confined to the cooking vessel, • confined chimney or flue fires, • confined incinerator fire, • confined fuel burner or boiler fire or delayed ignition, • confined commercial compactor fire, and • trash or rubbish fires in a structure with no flame damage to the structure or its contents. Although causal and other detailed information is typically not required for these incidents, it is provided in some cases. Some analyses, particularly those that examine Manufactured Horne Fires, 9/13 29 NFPA Fire Analysis and Research, Quincy, MA cooking equipment, heating equipment, fires caused by smoking materials, and fires started by playing with fire, may examine the confined fires in greater detail. Because the confined fire incident types describe certain scenarios, the distribution of unknown data differs from that of all fires. Consequently, allocation of unknowns must be done separately. Some analyses of structure fires show only non -confined fires. In these tables, percentages shown are of non -confined structure fires rather than all structure fires. This approach has the advantage of showing the frequency of specific factors in fire causes, but the disadvantage of possibly overstating the percentage of factors that are seldom seen in the confined fire incident types and of understating the factors specifically associated with the confined fire incident types. Other analyses include entries for confined fire incident types in the causal tables and show percentages based on total structure fires. In these cases, the confined fire incident type is treated as a general causal factor. For most fields other than Property Use and Incident Type, NFPA allocates unknown data proportionally among known data. This approach assumes that if the missing data were known, it would be distributed in the same manner as the known data. NFPA makes additional adjustments to several fields. Casualty and loss projections can be heavily influenced by the inclusion or exclusion of unusually serious fire. In the formulas that follow, the term "all fires" refers to all fires in NFIRS on the dimension studied. The percentages of fires with known or unknown data are provided for non -confined fires and associated losses, and for confined fires only. Cause of Ignition: This field is used chiefly to identify intentional fires. "Unintentional" in this field is a specific entry and does not include other fires that were not intentionally set: failure of equipment or heat source, act of nature, or "other" (unclassified)." The last should be used for exposures but has been used for other situations as well. Fires that were coded as under investigation and those that were coded as undetermined after investigation were treated as unknown. Factor Contributing to Ignition: In this field, the code "none" is treated as an unknown and allocated proportionally. For Human Factor Contributing to Ignition, NFPA enters a code for "not reported" when no factors are recorded. "Not reported" is treated as an unknown, but the code "none" is treated as a known code and not allocated. Multiple entries are allowed in both of these fields. Percentages are calculated on the total number of fires, not entries, resulting in sums greater than 100%. Although Factor Contributing to Ignition is only required when the cause of ignition was coded as: 2) unintentional, 3) failure of equipment or heat source; or 4) act of nature, data is often present when not required. Consequently, any fire in which no factor contributing to ignition was entered was treated as unknown. Manufactured Home Fires, 9/13 30 NFPA Fire Analysis and Research, Quincy, MA In some analyses, all entries in the category of mechanical failure, malfunction (factor contributing to ignition 20-29) are combined and shown as one entry, "mechanical failure or malfunction." This category includes: 21. Automatic control failure; 22. Manual control failure; 23. Leak or break. Includes leaks or breaks from containers or pipes. Excludes operational deficiencies and spill mishaps; 25. Worn out; 26. Backfire. Excludes fires originating as a result of hot catalytic converters; 27. Improper fuel used; Includes the use of gasoline in a kerosene heater and the like; and 20. Mechanical failure or malfunction, other. Entries in "electrical failure, malfunction" (factor contributing to ignition 30-39) may also be combined into one entry, "electrical failure or malfunction." This category includes: 31. Water -caused short circuit arc; 32. Short-circuit arc from mechanical damage; 33. Short-circuit arc from defective or worn insulation; 34. Unspecified short circuit arc; 35. Arc from faulty contact or broken connector, including broken power lines and loose connections; 36. Arc or spark from operating equipment, switch, or electric fence; 37. Fluorescent light ballast; and 30. Electrical failure or malfunction, other. Heat Source. In NFIRS 5.0, one grouping of codes encompasses various types of open flames and smoking materials. In the past, these had been two separate groupings. A new code was added to NFIRS 5.0, which is code 60: "Heat from open flame or smoking material, other." NFPA treats this code as a partial unknown and allocates it proportionally across the codes in the 61-69 range, shown below. Manufactured Home Fires, 9/13 31 NFPA Fire Analysis and Research, Quincy, MA 61. Cigarette; 62. Pipe or cigar; 63. Heat from undetermined smoking material; 64. Match; 65. Lighter: cigarette lighter, cigar lighter; 66. Candle; 67 Warning or road flare, fuse; 68. Backfire from internal combustion engine. Excludes flames and sparks from an exhaust system, (11); and 69. Flame/torch used for lighting. Includes gas light and gas -/liquid -fueled lantern. In addition to the conventional allocation of missing and undetermined fires, NFPA multiplies fires with codes in the 61-69 range by All fires in range 60-69 All fires in range 61-69 The downside of this approach is that heat sources that are truly a different type of open flame or smoking material are erroneously assigned to other categories. The grouping "smoking materials" includes codes 61-63 (cigarettes, pipes or cigars, and heat from undetermined smoking material, with a proportional share of the code 60s and true unknown data. Equipment Involved in Ignition (EII). NFIRS 5.0 originally defined EII as the piece of equipment that provided the principal heat source to cause ignition if the equipment malfunctioned or was used improperly. In 2006, the definition was modified to "the piece of equipment that provided the principal heat source to cause ignition." However, much of the data predates the change. Individuals who have already been trained with the older definition may not change their practices. To compensate, NFPA treats fires in which EII = NNN and heat source is not in the range of 40-99 as an additional unknown. To allocate unknown data for EII, the known data is multiplied by All fires (All fires — blank — undetermined — [fires in which EII =NNN and heat source <>40- 99]) Manufactured Home Fires, 9/13 32 NFPA Fire Analysis and Research, Quincy, MA In addition, the partially unclassified codes for broad equipment groupings (i.e., code 100 - heating, ventilation, and air conditioning, other; code 200 - electrical distribution, lighting and power transfer, other; etc.) were allocated proportionally across the individual code choices in their respective broad groupings (heating, ventilation, and air conditioning; electrical distribution, lighting and power transfer, other; etc.). Equipment that is totally unclassified is not allocated further. This approach has the same downside as the allocation of heat source 60 described above. Equipment that is truly different is erroneously assigned to other categories. In some analyses, various types of equipment are grouped together. Code Grouping EII NFIRS definitions Code Central heat 132 Furnace or central heating unit 133 Boiler (power, process or heating) Fixed or portable space heater Fireplace or chimney Fixed wiring and related equipment 131 Furnace, local heating unit, built-in 123 Fireplace with insert or stove 124 Heating stove 141 Heater, excluding catalytic and oil -filled 142 Catalytic heater 143 Oil -filled heater 120 Fireplace or chimney 121 Fireplace, masonry 122 Fireplace, factory -built 125 Chimney connector or vent connector 126 Chimney — brick, stone or masonry 127 Chimney -metal, including stovepipe or flue 210 Unclassified electrical wiring 211 Electrical power or utility line 212 Electrical service supply wires from utility 213 Electric meter or meter box 214 Wiring from meter box to circuit breaker 215 Panel board, switch board or circuit breaker board Manufactured Home Fires, 9/13 33 NFPA Fire Analysis and Research, Quincy, MA Transformers and power supplies Lamp, bulb or lighting Cord or plug Torch, burner or soldering iron 216 Electrical branch circuit 217 Outlet or receptacle 218 Wall switch 219 Ground fault interrupter 221 Distribution -type transformer 222 Overcurrent, disconnect equipment 223 Low -voltage transformer 224 Generator 225 Inverter 226 Uninterrupted power supply (UPS) 227 Surge protector 228 Battery charger or rectifier 229 Battery (all types) 230 Unclassified lamp or lighting 231 Lamp -tabletop, floor or desk 232 Lantern or flashlight 233 Incandescent lighting fixture 234 Fluorescent light fixture or ballast 235 Halogen light fixture or lamp 236 Sodium or mercury vapor light fixture or lamp 237 Work or trouble light 238 Light bulb 241 Nightlight 242 Decorative lights — line voltage 243 Decorative or landscape lighting — low voltage 244 Sign 260 Unclassified cord or plug 261 Power cord or plug, detachable from appliance 262 Power cord or plug- permanently attached 263 Extension cord 331 Welding torch 332 Cutting torch 333 Burner, including Bunsen burners Manufactured Home Fires, 9/13 34 NFPA Fire Analysis and Research, Quincy, MA Portable cooking or warming equipment 334 Soldering equipment 631 Coffee maker or teapot 632 Food warmer or hot plate 633 Kettle 634 Popcorn popper 635 Pressure cooker or canner 636 Slow cooker 637 Toaster, toaster oven, counter -top broiler 638 Waffle iron, griddle 639 Wok, frying pan, skillet 641 Breadmaking machine Equipment was not analyzed separately for confined fires. Instead, each confined fire incident type was listed with the equipment or as other known equipment. Item First Ignited. In most analyses, mattress and pillows (item first ignited 31) and bedding, blankets, sheets, and comforters (item first ignited 32) are combined and shown as "mattresses and bedding." In many analyses, wearing apparel not on a person (code 34) and wearing apparel on a person (code 35) are combined and shown as "clothing." In some analyses, flammable and combustible liquids and gases, piping and filters (item first ignited 60-69) are combined and shown together. Area of Origin. Two areas of origin: bedroom for more than five people (code 21) and bedroom for less than five people (code 22) are combined and shown as simply "bedroom." Chimney is no longer a valid area of origin code for non -confined fires. Rounding and percentages. The data shown are estimates and generally rounded. An entry of zero may be a true zero or it may mean that the value rounds to zero. Percentages are calculated from unrounded values. It is quite possible to have a percentage entry of up to 100% even if the rounded number entry is zero. The same rounded value may account for a slightly different percentage share. Because percentages are expressed in integers and not carried out to several decimal places, percentages that appear identical may be associated with slightly different values. Manufactured Home Fires, 9/13 35 NFPA Fire Analysis and Research, Quincy, MA Manufactured Housing Rules Effective: November 23, 2014 Administrative Rules of the Texas Department of Housing and Community Affairs 10 Texas Administrative Code, Chapter 80 TABLE OF CONTENTS SUBCHAPTER A. CODES, STANDARDS, TERMS, FEES AND ADMINISTRATION 1 §80.1. TEXAS MANUFACTURED HOUSING STANDARDS CODE. 1 §80.2. DEFINITIONS 1 §80.3. FEES. 5 §80.4. ADVISORY COMMITTEE. 8 SUBCHAPTER B. INSTALLATION STANDARDS AND DEVICE APPROVALS 8 § 80.20. REQUIREMENTS FOR MANUFACTURER'S DESIGNS AND INSTALLATION INSTRUCTIONS. 8 §80.21. REQUIREMENTS FOR THE INSTALLATION OF MANUFACTURED HOMES 9 §80.22. GENERIC STANDARDS FOR MOISTURE AND GROUND VAPOR CONTROLS. 12 §80.23. GENERIC STANDARDS FOR FOOTERS AND PIERS 13 §80.24. GENERIC STANDARDS FOR ANCHORING SYSTEMS. 24 §80.25. GENERIC STANDARDS FOR MULTI -SECTION CONNECTIONS STANDARDS 34 §80.26. REGISTRATION OF STABILIZING COMPONENTS AND SYSTEMS. 48 SUBCHAPTER C. LICENSEES' RESPONSIBILITIES AND REQUIREMENTS 51 §80.30. ALL LICENSEES' RESPONSIBILITIES 51 §80.31. MANUFACTURERS' RESPONSIBILITIES AND REQUIREMENTS. 52 §80.32. RETAILERS' RESPONSIBILITIES AND REQUIREMENTS. 53 §80.33. INSTALLERS' RESPONSIBILITIES AND REQUIREMENTS 56 §80.34. BROKERS' RESPONSIBILITIES AND REQUIREMENTS. 58 §80.35. SALESPERSON'S RESPONSIBILITIES AND REQUIREMENTS. 58 §80.36. RETAILER'S REBUILDING RESPONSIBILITIES AND REQUIREMENTS. 59 §80.37. CORRECTION REQUIREMENTS. 60 §80.38. RIGHT TO ADVANCE COPY OF CERTAIN DOCUMENTS. 61 SUBCHAPTER D. LICENSING 61 §80.40. SECURITY REQUIREMENTS. 61 §80.41. LICENSE REQUIREMENTS 62 SUBCHAPTER E. ENFORCEMENT 71 §80.70. ENFORCEMENT. 71 §80.71. RULES FOR HEARINGS. 71 §80.72. SANCTIONS AND PENALTIES. 72 §80.73. PROCEDURES FOR HANDLING CONSUMER COMPLAINTS. 73 SUBCHAPTER F. MANUFACTURES HOMEOWNERS' RECOVERY TRUST FUND 75 §80.80. ADMINISTRATION OF CLAIMS UNDER THE MANUFACTURED HOMEOWNERS' RECOVERY TRUST FUND75 SUBCHAPTER G. STATEMENTS OF OWNERSHIP AND LOCATION 76 §80.90. ISSUANCE OF STATEMENTS OF OWNERSHIP AND LOCATION 76 §80.91. ISSUANCE OFA TEXAS SEAL 80 §80.92. INVENTORY FINANCE LIENS. 80 §80.93. RECORDING TAX LIENS ON MANUFACTURED HOMES. 80 § 80.94. REPORT TO COUNTY TAX ASSESSOR -COLLECTORS AND COUNTY APPRAISAL DISTRICTS. 81 SUBCHAPTER A. CODES, STANDARDS, TERMS, FEES AND ADMINISTRATION §80.1. Texas Manufactured Housing Standards Code. (Effective: December 30, 2007) The standards and requirements for the installation and construction of manufactured housing adopted by the board in accordance with § 1201.251(a)(1) of the Texas Manufactured Housing Standards Act (Standards Act) are as follows: (1) The construction standards set out in Chapter VI of the Housing and Community Development Act of 1974, as the same may be amended from time to time, or under any official rule, official interpretation, or adopted standard issued or adopted by the Department of Housing and Urban Development under such law; (2) The installation standards set forth in this chapter; and (3) Applicable standards for installation components established by (A) Chapter 43 of the latest edition of the International Residential Code; (B) The stabilizing component destruction test failure criteria of the FMHCSS, as implemented by 24 CFR, Part 3280 and the latest edition of the International Residential Code, Appendix E; and (C) The American Wood Preserver's Association and referenced by the latest edition of the International Residential Code Preservation for treated (PT) wood components. (4) Collectively, the foregoing, together with the Standards Act and these rules, are referred to as the Texas Manufactured Housing Standards Code ("the Code"). §80.2. Definitions. (Effective: June 21, 2009) Terms used herein that are defined in the Code and the Standards Act have the meanings ascribed to them therein. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise: (1) APA --Administrative Procedure Act, Texas Government Code, Chapter 2001. (2) Business days --Includes every day on the calendar except Saturday, Sunday, and federal and state holidays. (3) Chattel Mortgage --Any loan that is not subject to the Real Estate Settlement Procedures Act (RESPA). Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 1 (4) Coastline --The shoreline that forms the boundary between the land and the Gulf of Mexico or a bay or estuary connecting to the Gulf of Mexico that is more than five miles wide. (5) Cosmetic --Matters of flaws and finish, appearance, materials or workmanship not covered by 24 CFR Part 3280. (6) Credit document --Any executed written agreements between the consumer and creditor that describe or are required in connection with an actual credit transaction. (7) (8) Creditor --A person involved in a credit transaction who: (A) extends or arranges the extension of credit; or (B) is a retailer or broker as defined in the Standards Act and participates in arranging for the extension of credit. Custom designed stabilization system --An anchoring and support system that is not an approved method as prescribed by the state generic standards, manufacturer's installation instructions, or other systems pre -approved by the Department. (9) Dangerous conditions --Any condition which, if present, would constitute an imminent threat to health or safety. (10) DAPIA--The Design Approval Primary Inspection Agency. (11) Department or TDHCA--The Manufactured Housing Division of the Texas Department of Housing and Community Affairs (TDHCA). (12) Deposits --Money or other consideration given by a consumer to a retailer, salesperson, or agent of a retailer to hold a manufactured home in inventory for subsequent purchase or to confirm the agreed price on a home to be specially ordered. (13) Down Payment --An amount, including the value of any property used as a trade-in, paid to a retailer to be applied to the purchase price of a manufactured home, including any goods or services that are a part of that transaction. (14) Dwelling unit --One or more habitable rooms which are designed to be occupied for living. (15) FMHCSS--Federal Manufactured Home Construction and Safety Standards that implement the National Manufactured Home Construction and Safety Standards Act of 1974, 42 USC 5401, et seq., as amended from time to time. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 2 (16) Frost Line Zone --An area in Texas designated by the Department, as having a frost line depth to consider when conforming with federal rules. (17) Independent testing laboratory --An agency or firm that tests products for conformance to standards and employs at least one engineer or architect licensed in at least one state. (18) Inventory Lender --A person that is involved in extending credit for inventory financing secured by manufactured housing. (19) IPIA--The Production Inspection Primary Inspection Agency which evaluates the ability of manufactured home manufacturing plants to follow approved quality control procedures and/or provides ongoing surveillance of the manufacturing process. (20) Long -Term Lease --For the purpose of determining whether or not the owner of a manufactured home may elect to treat the home as real property, is a lease on land to which the manufactured home has been attached and which: (A) has been approved by each lienholder for the manufactured home by placing on file with the Department written consent to have the home treated as real property; or (B) is for at least five years if the home is not financed. (21) Main frame --A chassis or structure serving a similar purpose. (22) Manufactured home identification numbers --HUD label number, serial number, or Texas seal number. For the purpose of maintaining ownership and location records, including the perfection of liens, the numbers shall include the HUD label number(s) and the serial number(s) imprinted or stamped on the home in accordance with HUD departmental regulations. For homes manufactured prior to June 15, 1976, the Texas seal number, as issued by the Department, shall be used instead of the HUD label number. If a home manufactured prior to June 15, 1976, does not have a Texas seal, or if a home manufactured after June 15, 1976, does not have a HUD label, a Texas seal shall be purchased from the Department and attached to the home in upper left corner on the end opposite the tongue end and used for identification in lieu of the HUD label number. (23) Manufactured home site --That area of a lot or tract of land on which a manufactured home is or will be installed. (24) Permanent foundation --A foundation which meets the requirements of §80.21 of this chapter (relating to Requirements for the Installation of Manufactured Homes) and was constructed according to drawings, as required by that section, which state that the foundation is a permanent foundation for a manufactured home. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 3 (25) Promptly --Means within the time prescribed by the Standards Act, these Rules, and any administrative order (including any properly granted extension) or, in the case of a matter that constitutes an imminent threat to health or safety, as quickly as reasonably possible. (26) Stabilization systems --A combination of the anchoring and support system. It includes, but is not limited to the following components: (A) Anchoring components --Any component which is attached to the manufactured home and is designed to resist the horizontal and vertical forces imposed on the manufactured home as a result of wind loading. These components include, but are not limited to auger anchors, rock anchors, slab anchors, ground anchors, stabilizing devices, connection bolts, j -hooks, buckles, and split bolts. (B) Anchoring equipment --Straps, cables, turnbuckles, tubes, and chains, including tensioning devices, which are used with ties to secure a manufactured home to anchoring components or other devices. (C) Anchoring systems --Combination of ties, anchoring components, and anchoring equipment that will resist overturning and lateral movement of the manufactured home from wind forces. (D) Diagonal tie --A tie intended to primarily resist horizontal forces, but which may also be used to resist vertical forces. (E) Footing --That portion of the support system that transmits loads directly to the soil. (F) Ground anchor --Any device at the manufactured home site designed to transfer manufactured home anchoring loads to the ground. (G) Longitudinal ties --Designed to prevent lateral movement along the length of the home. (H) Shim --A wedge-shaped piece of hardwood or other registered component not to exceed one (1) inch vertical (actual) height. (I) Stabilizing components --All components of the anchoring and support system such as piers, footings, ties, anchoring equipment, ground anchors and any other equipment, which supports the manufactured home and secures it to the ground. (J) Support system --A combination of footings, piers, caps and shims that support the manufactured home. (K) Vertical tie --A tie intended primarily to resist the uplifting and overturning forces. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 4 §80.3. Fees. (Effective: November 23, 2014) (a) License Fees and Renewal Fees: (1) $850 for each manufacturer's plant license; (2) $550 for each retailer's sales license; (3) $350 for each broker's license; (4) $350 for each installer's license; (5) $200 for each salesperson's license; and (6) $25.00 for each reprint of a license. (b) Installation Fees: (1) There is a reporting fee of $75 for the installation of a single section manufactured home and $25 for each additional section. (2) The reporting fee must be submitted to the Department with the completed Notice of Installation (Form T) no later than seven (7) days after which the installation is completed, but not later than three (3) days for installers with a provisional license. (3) Fee distributions to local governmental entities performing inspection functions pursuant to contract with the Department shall be made in accordance with Department procedures and the provisions of the contract. (c) Seal Fee: Except for an application by a tax appraiser or a tax assessor -collector, for which there is no fee, there is a fee of $35 for the issuance of a Texas Seal for one manufactured home section. Any person who sells, exchanges, lease purchases, or offers for sale, exchange, or lease purchase one or more sections of used HUD -Code manufactured homes manufactured after June 15, 1976, that do not each have a HUD label affixed, or one or more sections of a used mobile home manufactured prior to June 15, 1976, that do not each have a Texas Seal affixed shall file an Application for Statement of Ownership and Location to the Department for a Texas Seal and issuance of an updated Statement of Ownership and Location. The application shall be accompanied by the seal fee of $35 per section made payable to the Department. (d) Education Fee: (1) Core Education Fee: Each attendee at the regularly offered course of initial instruction in the law and consumer protection regulations for license applicants shall be assessed a fee of $150. Subject to availability of staff, the Department may provide additional initial instruction courses upon request for a fee of $150 per attendee plus reimbursement to the Department for the Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 5 actual costs of the training session and any related costs, such as travel, meal, and lodging. (2) Retailer Education Fee: $50 for each attendee. (3) Installer Education Fee: $50 for each attendee. There is a fee of $300 to process an application for a contract to be approved to provide a continuing education program under §1201.113 of the Standards Act. Industry Request. The manufacturer or retailer may request a consumer complaint home inspection. The request must be accompanied by the required fee of $150.00. There is a fee of $150 for the inspection of a manufactured home which is to be designated for residential use after having been previously designated for business use or which is elected as personal property after having been designated as real property. The purpose of the inspection is to determine if the home is habitable. The fee must accompany a written request for inspection and must be submitted either prior to or in connection with the submission of an Application for Statement of Ownership and Location. (h) There is a fee of $200 for the plan review and inspection of a salvaged manufactured home which is to be rebuilt. The purpose of the inspection is to determine if the home is habitable as defined by §1201.453 of the Standards Act so that it may be designated for residential use. (i) (1) The fee and required notification shall be submitted in accordance with §80.36 of this chapter (relating to Retailer's Rebuilding Responsibilities and Requirements). (2) The retailer shall also be charged for mileage and per diem incurred by Department personnel traveling to and from the location of the home. (3) The Department shall invoice the retailer for the charges incurred, and no Statement of Ownership and Location shall be issued until all charges and fees have been paid. There is no fee for an initial inspection relating to a complaint. If a re -inspection is requested by a consumer or a licensee, a fee of $150 will be assessed against any licensee found, by final order, to have violated any warranty or any other requirements of the Standards Act or these rules made the subject of the complaint. (j) There is a fee of $100 for the Department to go to a site and perform a field verification confirming a home's identity, location, identification numbers, or ownership. (k) Fees Relating to Statements of Ownership and Location. Each fee shall accompany the required documents delivered or mailed to the Department at its principal office in Austin. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 6 (1) A fee of $55 will be required for the issuance of a Statement of Ownership and Location. (2) If a correction of a document is required as a result of a mistake by the Department, there is no fee for the issuance of corrected document. However, if the error was not made by the Department, a request for correction of the error must be made on a completed Application for Statement of Ownership and Location and submitted to the Department along with the required fee of $55 and any necessary supporting documentation. (3) When multiple applications are submitted, the Form M set forth on the Department's website must be completed and attached to the front of the applications to identify each application and reconcile the fee for each application with the total amount of the payment. Failure to provide this form, properly completed, will delay the application's being deemed complete for processing. (4) A priority handling service may be offered by the Department for an additional fee of $55, for each review of an application, whether the application is complete or incomplete. (1) Method of Payment. (m) (1) All checks shall be made payable to the Texas Department of Housing and Community Affairs or TDHCA. (2) All fees for available electronic transactions may also be paid by credit card or ACH, if submitted through Texas Online Loss of Check Writing Privileges. Any person who has more than one (1) time paid for anything requiring a fee under these rules with a check that is returned uncollectible, whether "NSF," closed account, refer to maker, or for any similar reason, is required to make all future payments, if any, by means of money order or cashier's check. (n) The director may approve a refund of all or a portion of any fee collected if he or she makes a documented determination showing that: (1) The fee was for a service applied for in error based on incorrect advice from the Department; (2) The fee represented a duplicate payment for a service for which money had already been collected by the Department or a licensee; or (3) A refund is justified and warranted. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 7 §80.4. Advisory Committee. (Effective: November 6, 2011) The Board shall designate the membership of an advisory committee of not more than 24 members, that meets the requirements of §1201.251(d) of the Standards Act, and the committee shall report as specified §1201.251(e) of the Standards Act. SUBCHAPTER B. INSTALLATION STANDARDS AND DEVICE APPROVALS §80.20. Requirements for Manufacturer's Designs and Installation Instructions. (Effective: July 21, 2009) (a) With each new home, the manufacturer shall provide printed instructions which at a minimum must: (1) specify the location, orientation and required capacity of stabilizing components on which the design is based; (2) be filed with the Department; (3) be approved by the manufacturer's DAPIA; and (4) contain DAPIA approval stamps, engineer or architect approval stamps, and the installation manual effective date on each page of the installation instructions or on the cover pages of bound installation manuals, unless an equivalent method of authentication is used for electronically filed documents. (b) For used manufactured homes, if a manufacturer determines that one or more of its homes requires a deviation from the generic standards to protect the structural integrity of the home, the manufacturer must include instructions for the necessary deviation in the manufacturer's DAPIA-approved installation instructions and provide a list of all homes affected. The manufacturer must provide a copy to the Department along with a letter informing the Department of the required deviation included in the instructions and giving the Department permission to reproduce and release copies of such instructions upon request. On the Department's website, the Department will maintain a current list of all required deviations from generic standards and will provide a copy to anyone who requests it. (c) At least thirty (30) calendar days prior to the effective date of any change, modification, or update to the manufacturer's installation instructions or any appendix, the manufacturer shall file such change, modification, or update with the Department and mail a copy(s) to all the manufacturer's retailers. Links to appendix are posted on the Department's website. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 8 (d) The manufacturer shall file with the Department additional copies of manufacturer's installation instructions for each model in the number specified by the Department. If no number is specified, one copy of each such set of instructions will suffice. §80.21. Requirements for the Installation of Manufactured Homes. (Effective: December 25, 2012) (a) All new manufactured homes shall be installed by a licensed installer and in accordance with the home manufacturer's DAPIA-approved installation instructions. (b) All used manufactured homes shall be installed by a licensed installer to resist overturning and lateral movement of the home, and the installation must be completed in accordance with instructions appropriate for the Wind Zone where the home is to be installed as per one of the following: (1) the home manufacturer's DAPIA-approved installation instructions; (2) the state's generic standards set forth in §§80.22, 80.23, 80.24, and 80.25 of this subchapter (relating to Installation Standards and Device Approvals); (3) the instructions for a stabilization system registered with the Department in accordance with §80.26 of this subchapter (relating to Registration of Stabilizing Components and Systems); or (4) the instructions for a special stabilization system which: (A) may or may not be a permanent foundation; (B) is for a particular manufactured home or an identified class of manufactured homes to be installed at a particular area with similar soil properties according to county soil survey or other geotechnical reports; and (C) is either: (i) a pre-existing foundation for which a professional engineer or architect licensed in Texas has issued written approval for the installation of a particular home, and the written approval shall be submitted to the Department with the installation report; or (ii) installed in accordance with a custom designed stabilization system drawing that is stamped by a Texas licensed professional engineer or architect. A copy of the stabilization system drawing must be forwarded to the Department along with the installation report. (c) When a home is installed on a stabilization system registered with the Department or a special stabilization system, the installer must follow the home manufacturer's DAPIA- Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 9 approved installation instructions for any aspect of the installation that is not covered by the system's installation instructions or drawings. (d) The installer must use stabilizing components that have the required capacity and install them according to the anchor or stabilizing component manufacturer's current installation instructions. All stabilizing components must be resistant to all effects of weathering including that encountered along the Texas gulf coast. Anchors must be made resistant to corrosion. Nonconcrete stabilizing components and systems for use within 1500 feet of the coastline shall be specifically certified for this use. Preservative treated (PT) wood components shall conform to the applicable standards issued by the American Wood Preserver's Association and referenced by the latest edition of the International Residential Code. The use of re -conditioned equipment (i.e. anchor, strap, and clip) or any anchoring component by licensed installer on the new installations is not permitted. Homeowners are exempt from this requirement provided the integrity of the component is acceptable and approved by the state and the original product number, vendor name, and/or patent number must be legible on the product. (e) Site Preparation Responsibilities and Requirements: (1) The responsible installer of a new manufactured home is responsible for the proper preparation of the site where the manufactured home will be installed. (2) A consumer acquiring a used manufactured home to be installed is responsible for the proper preparation of the site where the manufactured home will be installed except as set forth in §80.22 of this chapter (relating to Generic Standards for Moisture and Ground Vapor Controls). (3) Whenever a licensed retailer intends to sell a used manufactured home, regardless of where it is located or is to be located, the retailer is required to give the consumer the Site Preparation Notice, for signature by the consumer, in the form set forth on the Department's website PRIOR to the execution of any binding sales agreement. (4) Whenever a licensed installer proposes to move a used manufactured home, the installer is required to give the consumer the Site Preparation Notice, for signature by the consumer, in the form set forth on the Department's website PRIOR to entering into a binding agreement to move that home. (f) If at the time of installation or within 90 days thereafter as stated on the contract, the retailer or installer provides the materials for skirting or contracts for the installation of skirting, the retailer or installer is responsible for installing any required moisture and ground vapor control measures in accordance with the home installation instructions, specifications of a registered stabilization system, or the generic standards and shall provide for the proper cross ventilation of the crawl space. If the consumer contracts with a person other than the retailer or installer for the skirting, the consumer is responsible for installing the moisture and ground vapor control measures and for providing for the proper cross ventilation of the crawl space. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 10 (g) Clearance: If the manufactured home is installed according to the state's generic standards, a minimum clearance of 18 inches between the ground and the bottom of the floor joists must be maintained. In addition, the installer shall be responsible for installing the home with sufficient clearance between the I -Beams and the ground so that after the crossover duct prescribed by the manufacturer is properly installed it will not be in contact with the ground. Refer to §80.25 of this chapter (relating to Generic Standards for Multi -Section Connections Standards) for additional requirements for utility connections. The Installer must remove all debris, sod, tree stumps and other organic materials from all areas where footings are to be located. (h) Drainage: The Installer is responsible for proper site drainage where a new manufactured home is to be installed unless the home is installed in a rental community. The consumer is responsible for proper site drainage where a used manufactured home is to be installed unless the home is installed in a rental community. Drainage prevents water build-up under the home. Water build-up may cause shifting or settling of the foundation, dampness in the home, damage to siding and bottom board, buckling of walls and floors, delamination of floor decking and problems with the operation of windows and doors. (i) Frost Line Zone. (1) The following Texas counties have a 12 inch frost line depth to consider for the installation of a new manufactured home: Armstrong, Bailey, Briscoe, Carson, Castro, Childress, Cochran, Collingsworth, Cottle, Crosby, Dallam, Deaf Smith, Dickens, Donley, Floyd, Foard, Gray, Hale, Hall, Hansford, Hardeman, Hartley, Hemphill, Hockley, Hutchinson, King, Knox, Lamb, Lipscomb, Lubbock, Moore, Motley, Ochiltree, Oldham, Parmer, Potter, Randall, Roberts, Sherman, Swisher, Wheeler, and Wilbarger. (2) For a new home to be installed in a Frost Line Zone county, footings placed in freezing climates must be designed using methods and practices that prevent the effects of frost heave by one of the following methods: (A) Conventional footings. Conventional footings must be placed below the frost line depth for the site unless an insulated foundation or monolithic slab is used (refer to 24 CFR §3285.312(b)(2) and (3)). (B) This is not subject to the provisions in 24 CFR §3285.2(c) that also require review by the manufacturer and approval by its DAPIA for any variations to the manufacturer's installation instructions for support and anchoring. (C) Monolithic slab systems. A monolithic slab is permitted above the frost line when all relevant site-specific conditions, including soil characteristics, site preparation, ventilation, and insulative properties of the under floor enclosure, are considered and anchorage requirements are accommodated as set out in 24 CFR §3285.401. The Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 11 monolithic slab system must be designed by a licensed professional engineer or registered architect: (i) In accordance with acceptable engineering practice to prevent the effects of frost heave; or (ii) In accordance with SEUASCE 32-01 as defined in 24 CFR §3285.4. (D) Insulated foundations. An insulated foundation is permitted above the frost line, when all relevant site-specific conditions, including soil characteristics, site preparation, ventilation, and insulative properties of the under floor enclosure, are considered, and the foundation is designed by a licensed professional engineer or registered architect: (i) In accordance with acceptable engineering practice to prevent the effects of frost heave; or (ii) In accordance with SEUASCE 32-01 as defined in 24 CFR §3285.4. (j) Electrical testing. At the time of installation, the following tests must be performed on all new manufactured homes: (1) All site installed or shipped loose fixtures shall be subjected to a polarity test to determine that the connections have been properly made; (2) All grounding and bonding conductors installed or connected during the home installation shall be tested for continuity; and (3) All electrical lights, equipment, ground fault circuit interrupters and appliances shall be subjected to an operational test to demonstrate that all equipment is connected and functioning properly. §80.22. Generic Standards for Moisture and Ground Vapor Controls. (Effective: July 21, 2009) (a) If the used manufactured home is installed according to the state's generic standards and the space under the home is to be enclosed with skirting and/or other materials provided by the retailer and/or installer, the enclosure must meet the following requirements: (1) At least one access opening that does not require the use of tools to gain access shall not be less than 18 inches in any dimension and not less than three square feet in area shall be provided by the installer. The access opening shall be located so as to enable, to the extent reasonably possible, the visual inspection of water supply and sewer drain connections. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 12 (2) If a clothes dryer exhaust duct, air conditioning condensation drain, or combustion air inlet is present, the installer must pass it through the skirting to the outside. All air conditioning condensation lines must be installed in such manner that prevents ponding within 5 feet of the foundation. (3) Crawl space ventilation must be provided at the rate of minimum 1 square foot of net free area, for every 150 square feet of floor area. (4) At least six openings shall be provided, one at each end of the home and two on each side of the home. There must be a ventilation within 3 feet of each corner. The openings shall be screened or otherwise covered to prevent entrance of rodents (note: screening will reduce net free area). For example, a 16'x76' single section home has 1216 square feet of floor area. This 1216 square feet divided by 150 equals 8.1 square feet or 1166 square inches of net free area crawl space ventilation. (b) The generic ground vapor control measure shall consist of a ground vapor retarder that is minimum 6 mil polyethylene sheeting or its equivalent, installed so that the area under the home is covered with sheeting and overlapped approximately 12 inches at all joints. Any tear larger than 18 inches long or wide must be taped using a material appropriate for the sheeting used. The laps should be weighted down to prevent movement. Any small tears and/or voids around construction (footings, anchor heads, etc.) are acceptable. §80.23. Generic Standards for Footers and Piers. (Effective: January 20, 2009) (a) Proper sizing of footings depends on the load carrying capacity of both the piers and the soil. To determine the load bearing capacity of the soil, the installer may use any of the following methods: (1) Using a pocket penetrometer; (2) Soil surveys from the U.S. Department of Agriculture; (3) Values from tables of allowable or presumptive bearing capacities given in local building codes. Such tables are commonly available from the local authority having jurisdiction; or (4) Any other test data from soil analysis reports. FOOTER CAPACITIES (LBS) Soil Bearing Capacity Footer size 1000psf 1500psf 2000psf 2500psf 3000psf or greater 16x16x4 1700 2700 3500 4400 5300 20x20x4 2700 4100 5500 6900 8300 16x32x4 3500 5200 6800 8600 10400 Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 13 Footer size 1000psf 1500psf 2000psf 2500psf 3000psf or greater 24x24x4 4000 6000 8000 10000 12000 Notes: 1) 8x16x4 footers may be used for perimeter and/or exterior door supports. Capacity is half that of the tabulated values for a 16x16x4 footer. For double 8x16x4 footers use the 16x16x4 row. 2) Footers of material other than concrete may be used if registered with the Department and the listed capacity and area is equal to or greater than the footer it replaces. Concrete footers of sizes not listed may be used as long as their size is equal to or greater than the size listed. 3) Footers with loads greater than 8,000 lbs. require a double stacked pier. 4) All poured concrete is minimum 2500 psi at 28 days. 5) Actual footer dimensions may be 3/8 inch less than the nominal dimensions for solid concrete footers conforming to the specifications in ASTM C90 -99a, Standard Specification for Load bearing Concrete Masonry Units. SOIL TYPE CHART Class of Material Load -Bearing Pressure (lbs per s.f.) Crystalline bedrock 12,000 Sedimentary and foliated rock 4,000 Sandy gravel and/or gravel (GW and GP) 3,000 Sand, silty sand, clayey sand, silty gravel and clayey gravel (SW, SP, SM, SC, GM and GC) 2,000 Clay, sandy clay, silty clay, clayey silt, silt and sandy silt (CL, ML, MH and CH) 1,500" For information only. Exact soil type must be determined by a certified lab. (b) The footing must be placed on firm, undisturbed soil, or fill compacted to at least 90% of its maximum relative density is required and must be verified every 6"— 8" vertically on the build-up. Installation on loose, noncompacted fill may result in settlement/movement of the home and may invalidate the home's limited warranty. (c) Footer Configurations. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 14 Notes: Typical pier pad: 16 in. x 16 in. x 4 in. thick precast concrete. FOOTER CONFIGURATIONS Layout 1 Layout 3 01411111 Layout 5 Layout 6 Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 15 DOUBLE! 8x16x4 PLACE CONCRETE BLOCKS PERPENDICULAR TO FOOTING JOINT. THREE 8X16X4CONCRETE BLOCKS FOR FOOTING. BLOCKS MUST BE LEVEL TO EACH OTHER. Layout 7 (d) Footer sizing and capacities: The Footer Capacities table in subsection (a)(4) of this section represent maximum loads and spacings based on footer size and soil bearing capacity. Other footers may be used if equal or greater in bearing area than those footer sizes tabulated. (e) Piers and pier spacings: Spacing and location of piers shall be in accordance with the tables listed in this chapter. (1) Spacing shall be as even as practicable avoiding obstacles that are not in control of the installer along each main I -Beam. Pier spacing may exceed tabulated values up to 30% so long as the total pier count remains the same. End piers are to be located within 24 inches of the end of the main frame. (2) Piers shall extend at least 6 inches from the centerline of the I -Beam or be designed to prevent dislodgment due to horizontal movement of less than 4 inches. (3) Load bearing supports or devices shall be registered with the Department in accordance with §80.26 of this chapter (relating to Registration of Stabilizing Components and Systems). (4) Sidewall openings greater than 4 feet shall have perimeter piers located under each side of the opening, i.e. patio doors, recessed porches/entries, bay windows and porch posts. Perimeter piers for openings are not required for endwalls. (f) Pier design: Piers shall be constructed per the details in the Pier Design. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 16 PIER DESIGN (SINGLE & MULTI -SECTION STACK) PIER A Less than 36 in. in height Main I -Beam Pier B Main 1 -Beam Wedge Shims 1x8 or 2x8 wood plates or other registeredca¢ttponent rut exceeding 2"(See Notes 3 to 5) Mininum oft"Concrete or 2x8x16 P.T. orHardwcod Cap Typical 8x x16 Con -mete Blacks Typical Footing 1x8 or 2x8 wood plates or otherreglstered co/tip:net rot exceeding 2" (See Notes 3 to 5) Miaitoji of 4x16x16 Cceacrete or Hardwood Cap or other re gjrtere d c ottpon nt Typical 8x8x16 Concrete Blocks 1}pical Footig Pier A: Single stack of solid or open cell, 8x8x16 concrete blocks. Maximum height is 36 inches as measured from the top of the footer to the top of the last concrete block. Concrete blocks are installed with their lengths perpendicular to the main I - Beam. Open cells must be vertical and in alignment. Pier B: Interlocked double stack of solid or open cell 8x8x16 concrete blocks. The maximum height is 48 inches as measured from the top of the footer to the top of the last concrete block. Piers of greater heights are allowed if they are within limits established in adopted federal standards. The pier is capped with a minimum 16x16x4 concrete cap. Open cells must be vertical and in alignment. Each course of open cell blocks must be perpendicular to the previous course. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 17 Pier B-1 2-1x8 ort -2x8 Wood plates or oder registered oomporent nat exceeding 2" (See Notes 3 to 5) Note: 1) Open cell and solid concrete blocks shall meet ASTM -C90 -99a, Standard Specification for load bearing Concrete Masonry Units. 2) Support system components are to be undamaged and installed in a manner to accomplish the purpose intended. 3) Either wood caps or shims must be used between I -Beam and concrete. 4) Preservative treated (PT) wood components shall conform to the applicable standards issued by the American Wood Preserver's Association and referenced by the latest edition of the International Residential Code. 5) When concrete caps are used, wood plates or other registered components are required. When wood caps are used, wood plates shall not be used. A maximum of 4 inches of wood including shims, nominal is allowed. (1) Shimming (if needed): Shims are commonly used as a means for leveling the home and filling any voids left between the bottom flange of the I -Beam and the top of the pier cap. Wedge shaped shims must be installed from both sides of the I -Beam to provide a level bearing surface. The allowable height must not exceed 1 inch. Shims shall be a minimum of 3"x 6" nominal All adjustment shims (marriage and perimeter) must be installed in manner which prevents dislodgement. (2) Table for pier spacing without perimeter piers. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 18 maximum Hier snacin Unit Width(ft) 4 ft o.c. 5 ft o.c. 6 ft o.c. 7 ft o.c. 8 ft o.c. 12 Wide 1725 2150 2600 3000 3400 14 wide 2000 2500 3000 3500 4000 16 Wide 2350 2900 3500 4100 4700 Note: Example: Step 1: Step 2: Answer: 18 ft. wades require perimeter support. Determine maximum pier spacing for a 16 ft. wide x 76 ft. long single section with a soil bearing capacity of 1500 psf. Footer size to be used is a single 16x16x4 precast concrete footer. Look up the maximum load for a single 16x16x4 pad set on 1500 psf soil. Answer = 2700 psf In the table in the column for 16 ft. wide, find the on -center spacing (o.c.) load equal to or less than the footer capacity of 2700 lbs. The 4ft column shows minimum capacity of 2350 lbs. Therefore, for a 16 ft. wide and a soil bearing capacity of 1500 psf using 16x16x4 footers the maximum pier spacing is 4 ft. o.c. PIER LOADS (LBS) AT TABULATED SPACINGS (WITHOUT PERIMETER SUPPORTS) (3) Table for pier spacing WITH perimeter supports and the Perimeter Pier Front and Side View. PIER LOADS (LBS) AT TABULATED SPACINGS (WITH PERIMETER SUPPORTS) maximum I -Beam Hier snacin Unit width (ft) 4 ft o.c. 6 ft o.c. 8 ft o.c. 10 ft o.c. 12 ft o.c. 12 Wide 750 1150 1500 1900 2300 14 Wide 1050 1600 2100 2600 3100 16 Wide 1200 1800 2400 3000 3600 18 Wide 1450 2150 2850 3600 4300 Note: Maximum I -Beam pier spacing is 8 ft. o.c. for 8" I -Beam, 10 ft. o.c. for 10" I -Beam and 12 ft. o.c. for 12" I -Beam or the resultant maximum spacing based on soil bearing and footer size per the table in §80.23(a)(4), whichever is less. maximum perimeter Hier snacin Unit width (ft) 4 ft o.c. 5 ft o.c. 6 ft o.c. 7 ft o.c. 8 ft o.c. 12 Wide 1000 1200 1500 1700 1900 14 Wide 1100 1400 1650 1900 2200 16 Wide 1300 1600 1900 2250 2500 18 Wide 1600 2000 2300 2700 3000 Example: Determine maximum I -Beam pier spacing for a 16 ft. wide with 12" I -Beam, perimeter support and 1500 psf soil bearing capacity. Step 1 From the table in §80.23(a)(4), the maximum load for a 16x16x4 at 1500 psf soil is 2700 lbs. Step 2: From the I-beam pier spacing table, the I -Beam pier load @ 10 ft. o.c. is 3000 lbs ==> no good, the I -Beam pier load @ 8 ft. o.c. is 2400 lbs ==> ok I -Beam pier spacing is at 8 ft. o.c. Step 3: The perimeter pier load @ 8ft. o.c. is 2500 lbs ==> ok Perimeter pier spacing is at 8 ft. o.c. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 19 PERIMETER PIER FRONT & SIDE VIEW TYPICAL FLOOR JOIST TYPICAL SIDEWALL FRONT VIEW 8" MAX. SIDE VIEW Notes: 1) Perimeter pier may be inset from edge of floor up to 8". The 2x6 brace may be omitted if the front face of a perimeter pier is flush with the perimeter joist and the perimeter pier supports the intersection of an interior joist and perimeter joist. 2) Dbl 2x6 are min. #3 Yellow Pine or pressure treated Spruce -Pine, nailed together with min 16d galvanized nails 2 - rows at maximum 8" o.c. 3) 2x6 brace must span at least two (2) but not more than three (3) floor joists. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 20 (g) Typical Multi -Section Pier Layout. TYPICAL MULTI -SECTION PIER LAYOUT Main I -Beam support blocking, if perimeter support is required. Z-0" Max Perimeter support at door openings less than 4' 0" are required at each side of the opening, if needed to make doors operational. Perimeter support required at each side of exterior sidewall opening (windows, doors, etc.) greater than 4,_0„ 1 ■ Use multiple piers to provide adequate footing area for column loads exceeding soil bearing capacity s Centerline Between Sections Main I -Beam Single pier supports at columns not to exceed soil bearing capacities. (See Tables) s s - ■ s a 2, 0„ Max s If perimeter support is required, interior p erimeter rail blocking is also used at c enterline sp acing to 1{2 that of exterior perimeter support, but only under marriage walls. ❑ ❑ ❑ See Table See Table t Perimeter support spacing (if required) per applicable tables 2,-0„ Max (h) Typical Single Section Pier Layout. Recessed Entry TYPICAL SINGLE SECTION PIER LAYOUT Main I -Beam support blocking, if perimeter support is required. Perimeter support at door openings less than 4'-0" are required at each side of the opening, if needed to make doors operational. Perimeter support required at each side of recessed entries or offsets andtorporchpost locations. Perimeter support required at each Side of a xdxrior Sidewall openings (windows, doors, etc.) greater than 2'-d" Max —■ r • ❑ ■ Main I -Beam ❑ ❑ ❑ ❑ ❑ ❑ ■t— r1 ■ See Table See Table Perimeter support spacing (if required) per applicable tables Recessed Entry Perimeter support required at each side of re c essed entries or offsets and/or porch post locations. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 21 (i) Multi -section units mating line column supports: (1) On multi -section units, openings larger than 4 feet must have piers installed at each end of the opening. And within 6 inches of each end. DETERMINING COLUMN LOAD To determine the column load for Column #1 at the endwall look up Span "A" in the table in §80.23(i)(4). To determine the column load for Column #2, look up the combined distance of both Span "A" and Span "B". To determine the column load for Column #3 look up Span "B" in the table. (NOTE: Mating line walls not supporting the beam must be included in the span distance.) To determine the loads for Columns #4 and #5 look up Span "C". For Columns #6 and #7 look up load for span "D". MARRIAGE LINE ELEVATION RIDGE BEAM SPAN ` D" SPAN "C" I1 SPAN "A" MOR OR OPEN'G LESS THAN 42" IN Y WIDTH N °R" 4SP MAIN I -BEAM J 11 -MAX. 6" Same as main I -Beam pier spacing or I/2 the spacing of perimeter piers, if present. #1 #6 #5 #4 #3 #2 #I (2) Column loads for each section may be combined when the columns are opposite each other. The footer must be sized for the combined loading. (3) Additional piers are required under marriage walls (see wall between column #3 and #4 in the Marriage Line Elevation figure in paragraph (1) of this subsection. The maximum spacing is the same as the spacing at the main I - Beams, without perimeter piers, and one half the spacing of the perimeter piers, with perimeter piers installed. (4) See the table for the mating line column loads. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 22 Mating Line Column Loads Unit width in feet (nominal Span in feet 12 Wide 14 Wide 16 Wide 4 720 840 960 6 1080 1260 1440 8 1440 1680 1920 10 1800 2100 2400 12 2160 2520 2880 14 2520 2940 3360 16 2880 3360 3840 18 3240 3780 4320 20 3600 4200 4800 22 3960 4620 5280 24 4320 5040 5760 26 4680 5460 6240 28 5040 5880 6720 30 5400 6300 7200 32 5760 6720 7680 34 6120 7140 8160 36 6480 7560 8640 Note: If actual span is not shown use next higher tabulated span. (j) Temporary support is required to insure the structural continuity of homes placed at the retail location. Thirty (30) days after the arrival of multi -section and sixty (60) days after the arrival of single -section manufactured dwellings to the retail location, homes must be temporarily lot set. If the manufacturer has instructions for temporary blocking, home should be blocked according to the manufacturer specifications. In absence of any manufacturer instructions, State Generic requirement, either paragraph (1) or (2) of this subsection, shall be used: (1) Manufacturer dwellings supported by its running gear (left on their wheels and draw bar/hitch) shall be adequately supported under the main beam (I- beam) of within 5 feet of each end of the beam, within 5 feet of a supporting wheel and 10 feet on -center of each floor section. Any required marriage line and perimeter pier locations that are clearly marked by the manufacturer are also to be installed. Sidewall openings less than 4 feet in length do not have to be supported. Multi -section homes shall be sealed at the centerline and at all other openings to prevent exposure to the elements. (2) Manufactured dwellings not supported on their running gear shall be adequately supported under each main frame (I-beam) within 5 feet of each end of the home and 10 feet on -center along the length of the main beam. Any required marriage line and perimeter pier locations that are clearly marked by the manufacturer are also to be installed. Sidewall openings less than 4 feet in length do not have to be supported. Multi -section homes shall Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 23 be sealed at the centerline and at all other openings to prevent exposure to the elements. §80.24. Generic Standards for Anchoring Systems. (Effective: January 29, 2008) (a) General Requirements: For units built on or after September 1, 1997, the installer must verify that the unit is designed for the Wind Zone in which it is to be installed and must follow all applicable installation instructions for that Wind Zone as set forth herein. Note: A Wind Zone I unit, built on or after September 1, 1997, may not be installed in a Wind Zone II area. However, a Wind Zone II unit may be installed in a Wind Zone I area. The counties are defined in the FMHCSS. (b) Material Specifications: (1) Strapping shall be Type 1, Finish B, Grade 1 steel strapping, 1.25 inches wide and 0.035 inches in thickness, certified by a licensed professional engineer or architect as conforming with the American Society for Testing and Materials (ASTM) Standard Specification D3953 91, Standard Specification for Strapping, Flat Steel, and Seals. Strapping shall be marked at least every five feet with the marking described by the certifying engineer or architect. (2) Tie materials shall be capable of resisting an allowable working load of 3,150 pounds with no more than 2% elongation and shall withstand a 50% overload (4,725 pounds total). Ties shall have a resistance to weather deterioration at least equivalent to that provided by coating of zinc on steel of not less than 0.30 ounces per square foot on each side of the surface coated (0.0005 inches thick), as determined by ASTM Standards Methods of Test for Weight of Coating on Zinc -coated (galvanized) Iron or Steel Articles (ASTM A 90-81). Slit or cut edges of zinc -coated steel strapping are not required to be zinc coated. Ties shall be designed and installed to prevent self disconnection when the ties are slack. (3) Anchor spacing ONLY applies to units with roof pitch of 20 degrees or less. For anything over 20 degrees, it must be designed by a professional engineer or architect. (c) Anchors shall be installed: (1) in direction of load. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 24 ANCHOR INSTALLATION Notes: 1) Anchor head must be flush or not to exceed more than 1 inch from the ground at insertion point. 2) Anchor head may be inset a maximum of 6 inches from the vertical outer edge of the floor framing to allow for skirting installation. Diagonal Only Vertical Only (2) against direction of load (vertical and/or angled), and a stabilizer plate must be installed. See the following Placement of Stabilizing Devices. PLACEMENT OF STABILIZING DEVICES Diagonal and Vertical STABIJ TIER PLATE Diagonal Only Optional Concrete Collar I" MAX. '-- STABILIZER PLATE Notes: 1) Stabilizer plate may be replaced with a concrete collar that is at least 18 inches deep and 10 inches in diameter or other approved devices. 2) Diagonal tie must depart from the top of the I -Beam as shown. 3) The top of the stabilizer plate must be within 1 inch of the anchor shaft. 4) Stabilizer plates and other approved devices must be installed in accordance with the product manufacturer's instructions. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 25 (d) WIND ZONE I Installation: (1) Typical anchor layout, single and multi -section units (WIND ZONE I ONLY). WIND ZONE I — SINGLE/MULTI-SECTION INSTALLATION (Refer to other figures for depictions of proper anchor and stabilizer device installation.) Figure 1: Single Section 4— EXTERIOR SIDEWALL / ANCHOR FL 0 DISTANCE • y / / 41 .S - 0.035 X 1 1!4"TIE-DOWN STRAP FURNISHED BY INSTALLER ANCHOR RATED AT 4725## ULTIMATE LOAD MAIN I -BEAM GROUND LEVEL Notes: 1) Single section units require diagonal ties to be directly opposite each other. 2) All existing vertical ties must be connected to a ground anchor. 3) Diagonal tie spacing per the table. Vertical distance in this table refers to the distance of the anchor head to the underside of the floor joists as shown above. 4) Diagonal tie must depart from the top of the I -Beam as shown. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 26 Figure 2: Multi -Section ■ EXTERIOR SIDEWALL ANCHOR FLOOR DISTANCE -MAIN I -BEAM GROUND LEVEL MARRIAGE WALL AT CENTERLINE MAY BE DOUBLE OR SINGLE FLOOR DECKING TRANSVERSE FL.00RJOIST MAIN I -BEAM INTERIOR CROSS MEMBER 0.035 X 1 114"TIE-LOWN STRAP FURNISHED BY INSTALLER ANCHOR RATED AT 4725# ULTIMATE LOAD ADDITIONAL PIER SUPPORTS - ARE REQUIRED UNDER EACH COLUMN SUPPORT - GROUND LEVEL SEE APPLICABLE PIER DETAILS Notes: 1) Multi -section units require diagonal ties on the outer main I -Beams only. 2) Diagonal ties need not be directly opposite each other. 3) Diagonal tie spacing per the table. Vertical distance in this table refers to the distance of the anchor head to the underside of the floor joists as shown above. 4) Existing vertical ties must be connected to a ground anchor. 5) Diagonal tie must depart from the top of the I -Beam as shown. (2) Maximum spacing for Diagonal Ties for Wind Zone I. MAXIMUM SPACING FOR DIAGONAL TIES Minimum Nominal Widths Single/Double Section Max. Vertical Distance 12/24 wide 14/28 wide 16/32 wide 18/36 wide 20"to24" lift 14ft 15ft 16ft 25"to29" 9ft 12ft 14ft 15ft 30"to40" 8ft loft 12ft 14ft 41"to48" 7ft 9ft lift 13ft 49" to 60" (see note 3) 6ft 8ft 10ft 12ft 61" to 67" (see note 3) 5ft 6ft 8ft 10ft Minimum number o longitudinal ties, each end of each section. 1 at min. 58° angle from vertical 2 at min. 32° angle from vertical 2 at min. 38° angle from vertical 2 at min. 46° angle from vertical Notes: 1) This chart applies to single and multi section homes. 2) Anchoring components are rated at 4725 lbs. ultimate load. Anchoring components and equipment shall be installed in accordance with the anchoring component and equipment manufacturer's installation instructions. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 27 3) Single section units shall have diagonal ties directly opposite each other along the two main I - beams. Multi section units need diagonal ties on the outer-most main I-beam only. When vertical distance exceeds 48", connect diagonal tie to opposite beam. 4) Ties installed at each end of the home shall be within 24 inches of each end of the applicable I- beam. 5) The distance between any two ties may be exceeded to avoid an obstruction, as long as the total number of ties remains the same, and no two anchors shall be within 4 ft of each other. 6) Any vertical ties present on homes must be attached to a ground anchor. Both vertical and diagonal ties may be connected to a single double -headed anchor, if the anchor manufacturer's installation instructions allow for the combined loading. 7) The vertical distance is measured from the anchor head to the underside of the floor joists. 8) No two anchors shall be within 4 ft of each other. 9) Other stabilizing systems registered with the Department may replace longitudinal and/or lateral ties as long as the system manufacturer's installation instructions are followed. (3) Minimum Number of Diagonal Ties for Wind Zone I. Table based on 2 feet inset of anchors at each end. MINIMUM NUMBER OF DIAGONAL TIES REQUIRED PER SIDE, PER UNIT LENGTH o.c. spacing (ft) unit length (ft) 4 5 6 7 8 9 10 11 12 13 14 15 16 40 10 8 7 6 6 5 5 4 4 4 4 3 3 42 11 9 7 6 6 5 5 5 4 4 4 4 3 44 11 9 8 7 6 5 5 5 4 4 4 4 4 46 12 9 8 7 6 5 5 5 5 4 4 4 4 48 12 10 8 7 7 6 5 5 5 4 4 4 4 50 13 10 9 8 7 6 6 5 5 5 4 4 4 52 13 11 9 8 7 6 6 5 5 5 4 4 4 54 14 11 9 8 7 7 6 6 5 5 5 4 4 56 14 11 10 8 8 7 6 6 5 5 5 4 4 58 15 12 10 9 8 7 6 6 6 5 5 5 4 60 15 12 10 9 8 7 7 6 6 5 5 5 5 62 16 13 11 9 8 7 7 6 6 5 5 5 5 64 16 13 11 10 9 8 7 6 6 6 5 5 5 66 17 13 11 10 9 8 7 7 6 6 5 5 5 68 17 14 12 10 9 8 7 7 6 6 6 5 5 Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 28 unit length (ft) 4 5 6 7 8 9 10 11 12 13 14 15 16 70 18 14 12 10 9 8 8 7 7 6 6 5 5 72 18 15 12 11 10 9 8 7 7 6 6 6 5 74 19 15 13 11 10 9 8 7 7 6 6 6 5 76 19 15 13 11 10 9 8 8 7 7 6 6 6 Note: If unit length is not listed use next higher tabulated length. (4) When auger anchors cannot be inserted into a difficult soil after moistening, such as mixed soil and rock or caliche (heavily weathered limestone) that is not solid rock, cross drive rock anchors may be used in accordance with the values and notes for the table modified as follows: (5) (A) Since the ultimate anchor pull out in the difficult soil will be reduced, the maximum spacing for diagonal ties per side is one half the spacing allowed by the table in paragraph (2) of this subsection which will require adding one additional cross drive rock anchor for each anchor specified for the sides and ends; (B) The rods of the cross drive rock anchors must be fully inserted, have at least 24 inches of the rod lengths embedded in the difficult soil, and be restrained from horizontal movement by a stabilizer device between the rods and the home; and (C) Each cross drive rock anchor is connected to one diagonal tie and is not connected to a vertical tie. Where vertical tie locations are not easily discernable, the vertical ties may be connected to the main I -Beam rails and the anchor installed directly below that connection point. The diagonal tie must be connected to the opposite main I -Beam. In no case shall the distance between those ties exceed 5'-4" on -center. (e) WIND ZONE II Installation: (1) In place of the requirements as shown in subsection (d) of this section, units designed for Wind Zone I and built prior to September 1, 1997, and units designed for Wind Zone II and built prior to July 13, 1994, require diagonal ties as set forth in this paragraph when these units are installed in Wind Zone II. See also §1201.256 of the Standards Act. Items not specifically addressed in this section are the same as for Wind Zone I installations. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 29 MAXIMUM SPACING FOR DIAGONAL TIES (WIND ZONE II) PER SIDE OF THE ASSEMBLED UNIT Minimum Nominal Widths Single/Double Section Max. Vertical Distance 12/24 wide 14/28 wide 16/32 wide 18/36 wide 20" to 24" 7 ft 8 ft 8 ft 8 ft 25" to 29" 6 ft 7 ft 8 ft 8 ft 30" to 40" 5 ft 6 ft 7 ft 8 ft 41"to48" 4ft 5ft Eft 7ft 49" to 60" (see note 2) 4 ft 6 ft 6 ft 6 ft Minimum number of longitudinal ties, each end of each section. 2 at min. 58° angle from vertical 2 at min. 32° angle from vertical 3 at min. 38° angle from vertical 3 at min. 46° angle from vertical Notes: 1) This chart applies to single and multi section homes. 2) Single section units shall have diagonal ties directly opposite each other along the two main I - beams. Multi section units need diagonal ties on the outer-most main I-beam only. When vertical distance exceeds 48", connect diagonal tie to opposite beam. 3) Ties installed at each end of the home shall be within 24 inches of each end of the applicable I- beam. 4) The distance between any two ties may be exceeded to avoid an obstruction, as long as the total number of ties remains the same, and no two anchors shall be within 4 ft of each other. 5) Any vertical ties present on homes must be attached to a ground anchor. Both vertical and diagonal ties may be connected to a single double -headed anchor, if the anchor manufacturer's installation instructions allow for the combined loading. 6) The vertical distance is measured from the anchor head to the underside of the floor joists. 7) No two anchors shall be within 4 ft of each other. 8) Other stabilizing systems registered with the Department may replace longitudinal and/or lateral ties as long as the system manufacturer's installation instructions are followed. (2) Units built to Wind Zone II on or after July 13, 1994. (A) Units built to Wind Zone II on or after July 13, 1994, should have either built-in, or provisions for connecting, vertical ties along the sidewall(s) of each unit(s). A diagonal tie must be installed at each vertical tie location (except for designated shearwall tie). Built-in vertical ties shall be connected to anchors. If there are brackets or other provisions for connecting vertical ties, vertical ties shall be added at the brackets or provisions and connected to anchors. (B) Only factory installed vertical ties may be closer than 4 feet from each other. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 30 (C) Where tie locations are clearly marked as a shear wall strap, a perimeter pier must be installed at that location. Diagonal tie is not required. (D) Where the vertical tie spacing exceeds 8'-0" on -center (see also note 6 in the table in this paragraph for exception), the anchoring system must be approved by the home manufacturer's installation manual, or designed by a professional engineer or architect licensed in the state of Texas. (E) Where pier heights exceed 36 inches in height, the diagonal strap shall be connected to the opposite I -Beam. (3) Multi -section centerline anchoring requirements (Wind Zone II only): (A) Centerline anchor ties are required for ALL Wind Zone II installations, regardless of the date the unit was manufactured, when installation occurs on or after the effective date of these rules. (B) Factory installed centerline vertical ties, brackets, buckles or any other connecting devices must be connected to a ground anchor. No additional anchors as described in subparagraph (D) of this paragraph are required. (C) To avoid obstructions and/or piers and footers, the anchor may be offset up to 12 inches perpendicular to the centerline. (D) Where factory preparations do not exist, install anchors and angle iron brackets at each side of mating line openings wider than 48 inches. (i) Where equal spans exist opposite each other (i.e., each section), a double bracket assembly may be used. The maximum opening is per the table in subsection (f)(4) of this section. Total uplift load may not exceed the anchor and/or strap capacity (i.e., 3150 pounds). (ii) The angle iron bracket is minimum 1 /2" x 1 /z" x 11 gauge. The holes for the lag screws are a maximum of 4 inches apart and 3/4" from the edge of the bracket. (iii) Lag screws/bolts are minimum 3/8" diameter x 3 inches, full thread. Note: Pre drill pilot holes. (4) For openings separated by a wall or post 16 inches or less in width, the opening span is the total of the spans on each side of the wall/post. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 31 (f) Bracket Installation. (1) See the table in paragraph (4) of this subsection concerning the maximum centerline wall opening for column uplift brackets. (2) Use a single bracket for openings which exist on one section only. Use double bracket where openings are opposite each other on two sections of the home. (3) When only one bracket assembly is required, it may be installed on either side of the column/opening stud(s), but no more than 12 inches from the column or opening stud(s). (4) When two bracket assemblies are required, they must be installed on each side of the column/opening stud(s), but no more than 12 inches from the column/opening stud(s), and they must be angled away from each other a minimum of 12 inches. MAXIMUM CENTERLINE WALL OPENING FOR COLUMN UPLIFT BRACKETS Maximum opening based on floor widths (5) Example: A double section unit with each section being 14 feet wide; (A) Span "A" is 18'-0", matching span both sections; (B) Span "B" is 14'-8", matching span both sections; (C) Span "C" is 6'-8", matching span both sections; and (D) Span "D" is 13'-4", one side only. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 32 12 Wide (140"max) 14 Wide (164"max.) 16 Wide (186" max.) 18 Wide (210" max.) One Single Bracket (2 -lags) either side of column. 17'-6" 15'-0" 13'-3" 11'-9" Two Single Brackets (2 -lags each), one each side of column. 35'-0" 30'-0" 26'-6" 23'-6" One Double Bracket (4 -lags) either side of column. Spans are on both sections, opposite each other. 31'-9" 27'-2" 23'-11" 21'-2" *Two Double Brackets (4 -lags) either side of column. Spans are on both sections, opposite each other. 40 -0 40 -0 40 -0 40 -0 * For openings larger than 40'-0", consult a local licensed professional engineer or architect. (5) Example: A double section unit with each section being 14 feet wide; (A) Span "A" is 18'-0", matching span both sections; (B) Span "B" is 14'-8", matching span both sections; (C) Span "C" is 6'-8", matching span both sections; and (D) Span "D" is 13'-4", one side only. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 32 ANCHOR SPAN (6) Longitudinal ties: (A) Longitudinal ties are required for ALL wind zone installations, regardless of the date of manufacture, when installation occurs after the effective date of these rules. (B) Longitudinal ties are designed to prevent lateral movement along the length of the home. (C) When conventional anchors and straps are used; the required number of ties must be installed as appropriate. The strap(s) may be connected or wrapped around front or rear chassis header members, around existing cross members or spring hangers. A strap must be within 3 inches of where the cross member attaches to the main I- beam. Alternatively, brackets to receive the strap(s) may be attached to the bottom flange of the main I -beams. The location of the connection points along the length of the I -beams are not critical, as Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 33 — RIDGE BEAM — ii i SPAN "D„ Opening an a48 width. IF 1 SPAN "B„ SPAN "A„ (with or wto header) ii- r 1 rfr _ - MAIN I -SEAM #8 #7 #6 ,.._r_--____ #5 #4. #3#2 #1 Determine type and number of brackets needed at each opening. Anchor#1: Anchor #2 & #3: Anchor #4: Anchor #5: Anchor#6 &#7: From the table in §80.24(f)(4), row 3 in the 14 ft. wide column, the maximum span for this condition is 27'-2" . Actual span is 18'-0" ====> one double bracket is ok. Since the wall between spans "A" and "B" is less than 16 inches in width the two spans must be added together to determine number and type of brackets. Span "A" (18'-0") + Span "B" (14-8") = 32'-8" From the table in §80.24(f)(4), row 3 in the 14 ft. wide column, the maximum span for one double bracket is 27'-2". Actual span is 32'-8" ====> two double brackets required. Span "B" is on both sections [@ 14-8". From the table in §80.24(f)(4), row 3 in the 14 ft. wide column, the maximum span for one double bracket is 27'-2" ====> ok Same as anchor #4, except for 6'-8" span. This span is ori one section only. Therefore a single bracket may be used. From the table in §80.24(f)(4), row 1 in the 14 ft. wide column, the maximum span for a single bracket is 15'-0". Actual span is 13'-8" > single bracket is ok. (6) Longitudinal ties: (A) Longitudinal ties are required for ALL wind zone installations, regardless of the date of manufacture, when installation occurs after the effective date of these rules. (B) Longitudinal ties are designed to prevent lateral movement along the length of the home. (C) When conventional anchors and straps are used; the required number of ties must be installed as appropriate. The strap(s) may be connected or wrapped around front or rear chassis header members, around existing cross members or spring hangers. A strap must be within 3 inches of where the cross member attaches to the main I- beam. Alternatively, brackets to receive the strap(s) may be attached to the bottom flange of the main I -beams. The location of the connection points along the length of the I -beams are not critical, as Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 33 long as the number of longitudinal ties required for each end of each home section are installed with their pull in opposite directions. No two anchors shall be within 4 ft of each other. No two ties shall be attached to the same structural member of the home, other than a main longitudinal frame member or a front or rear chassis header member. (D) Anchors require stabilizer plates when the anchor shaft is not in line with strap (plus or minus 10 degrees). §80.25. Generic Standards for Multi -Section Connections Standards. (Effective: December 25, 2012) (a) Air infiltration and water vapor migration at mating surfaces: Before positioning additional sections, the mating line surfaces along the floor, endwall and ceiling, require material or procedures to limit air infiltration and water vapor migration. (1) Expanding Foam: Foam may be used along surfaces that are accessible after the units have been joined. Where mating line walls line up between sections, non -porous materials must be installed prior to joining the units. (2) Caulking: Caulking may be used along surfaces that are accessible after the units have been joined. Where mating line walls line up between sections, non -porous materials must be installed prior to joining the units. (3) (4) Non -porous gasket installed along the perimeter of all mating lines. Insulation, carpet, carpet pad or other porous materials are not acceptable. MATING LINE SURFACES Mating line surfaces are along the floor, up the front and rear endwalls and along the ceiling line. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 34 f )5A fsj {y� i . 11 w1 11 1I �1 �1 11 Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 34 (b) Floor Connections: (1) Gaps between floors up to 1-1/2 inches maximum which do not extend the full length of the floor may be filled with lumber, plywood or other suitable shimming materials. Fastener lengths in shimmed areas may need to be increased to provide minimum 1-1/4 inches penetration into opposite floor rim joist. (2) Gaps less than 1/2 inch width need not be shimmed. (3) The floor assemblies of multi -section units must be fastened together. Fastener options and maximum spacings are listed in the floor connections figure in paragraph (4) of this subsection. (4) Any tears or damages to the bottom board due to fastener installation must be repaired. Wind Zone min 5/16 lag screw # 10 wood screw Wind Zone I max. 36" max. 24" Wind Zone II max. 24" max. 12" FLOOR CONNECTIONS 1/4 x SPACING"X"PERTABLE AND TYPE FASTENER USED IN - 4 3/4 x FASTENERS PER TABLE Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 35 (c) Endwall Connections: (1) Endwalls must be fastened together at the mating line with minimum #8x4 inch wood screws or 16d nails at maximum 8 inches on -center or 12 inches on -center maximum for 5/16 lags; toed or driven straight; and (2) Fastener length may need to be adjusted for gaps and/or toeing, to provide minimum 1-1/2 inch penetration into opposite endwall stud. ENDWALL CONNECTIONS Expanding Fo non-parous caJI1k \ Tape, Bottom Board or equivalent. 8" olc max. for screws or nails. 12" olc max. for 5116" lags. Fasteners may be toed. (d) Roof Connection: (Note: Fasteners must not be used to pull the sections together.) (1) Roof shall be connected with the fasteners and spacings specified in the figure in paragraph (2) of this subsection. (2) Gaps between the roof sections (at ridge beam and/or open beam ledgers) of up to 1-1/2 inches wide maximum which do not extend the full length of the roof must be filled with lumber and/or plywood shims. Gaps up to 1/2 inch need not be shimmed. The fastener length used in the shimmed area may need to be increased to provide a minimum 1-1/4 inch penetration into the adjacent roof structural member. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 36 Roof Connection - Fastener type and spacing: maximum o.c. spacing (in) Wind Zone 3/8 Lag 1/4 Lag #10 wood screw Wind Zone I 36" 24" 24" Wind Zone II 20" 16" 12" (TYP.) FASTENER LOCATIONS 1.4X—\ END s4- x END OF HOME TOP VIEW OF ROOF ROOF CONNECTION FASTENER TYPE AND SPACING PER TABLE. APPROX. 45¢ RIDGE BEAM APPROX. 45¢ (e) Exterior Roof Close Up: (1) Ensure that shingles are installed to edge of roof decking at peak. Follow nailing instructions on the shingle wrapper. Note: Wind Zone II (high wind) installations require additional fasteners. (2) Before installing ridge cap shingles, a minimum 6 inch wide piece of 30 gauge galvanized flashing must be installed the length of the roof. (3) When flashing is not continuous, lap individual pieces a minimum of 6 inches. (4) Fasten flashing into roof sheathing with minimum 16 gauge staples with 1 inch crown or roofing nails of sufficient length to penetrate roof decking. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 37 Maximum fastener spacing is 6 inches on -center each roof section. Place fasteners a minimum of 3/4 inches along edge of flashing. (5) Install ridge shingles directly on top of flashing. (6) Check and repair as necessary the remainder of roof for any damaged or loose shingles, remove any shipping plastic or netting, wind deflectors, etc. Make sure to seal any fastener holes with roofing cement. EXTERIOR ROOF CLOSE UP SHINGLE ROOF CAP INSTAJ T Fn PER SHINGLE MANUFACTURER'S INSTRUCTIONS ON BUNDLE. SEAMS IN METAL CAP TO OVERLAP MIN. 6" 30 GA X 6"TO 8" GALVANIZED METAL. FASTEN WITH ROOFING NAILS OR 16 GA X 1" CR STAPJ FS OF SUFFICIENT LENGTH FOR FULL PENETRATION INTO ROOF DECKING. SPACING AT 6" O.C. INSTALL SHINGLES TO EDGE SHINGLES TRUvUvIED FLUSH TYPICAL PLYWOOD RIDGE BEAM (f) Exterior Endwall Close Up: Cut closure material to the shape and size required and secure in place, starting from the bottom up, i.e.: bottom starter, vertical or horizontal siding, then roof overhang, soffit and fascia. All closure material should be fitted and sealed as required to protect the structure or interior from the elements. (g) HVAC (heat/cooling) Duct Crossover: (1) Crossover duct must be listed for EXTERIOR use. (2) Duct R -value shall be a minimum of R-4. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 38 (3) The duct must be supported 48 inches on -center (maximum) and must not be allowed to touch the ground. Either strapping (minimum 1 inch wide), to hang the duct from the floor, or non -continuous pads to support it off the ground are acceptable. The duct to the collar or plenum connections must be secured with bands or straps designed for such use. Keep duct as straight as possible to avoid kinks or bends that may restrict the airflow. Extra length must be cut off. The installer should refer to the manufacturer's instruction for assembling the overhead duct. HVAC (HEAT/COOLING) DUCT CROSSOVER -FURNACE BASE PLATE FL 0 OR REGISTER / REGISTER RISER HEAT DUCT FACTORY INSTALLED C OLLAR FL 0 OR JOIST FURNACE BASE EXTENSION HEAT DUCT FURNACE MARRIAGE WALL LIMIT LENGTH OFDUCT TO REDUCE BTUH L OSS USE L ONG BENDS TO AVOID HI EES THAT RES TRIC T AIRFL OW PLACEMENT AS REQUIRED TO PREVENT DUCT FROM TOUCHING THE GROUND [Furnace Furnace Fumace Base Plate Fumace Base Extension FL 0 OR JOIST (h) Multi -Section Water Crossover: (1) VERB OM ADAPTER LIMIT LENGTH OF DUC T TO REDUCEBTUHLOSS USE L ONG BENDS TO AVOID HINES THAT REE TRIC T AIRFL OW SUPPORT PAD(S ) PLACEMENT AS REQUIRED TO PREVENT DUCT FROM TOUCHING THE GROUND (PADS ARE TYPICALLY STYRO- FOAM OR EQUIVALENT) If there is water service to other sections, connect the water supply crossover lines as shown in the applicable detail. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 39 (2) If the water crossover connection is not within the insulated floor envelopes, wrap the exposed water lines in insulation and secure with a good pressure sensitive tape or nonabrasive strap, or enclose the exposed portion with an insulated box. (3) METHOD A METHOD B If water piping at the inlet is exposed, a heat tape should be installed to prevent freezing. A heat tape receptacle has been provided near the water inlet. When purchasing a heat tape, it must be listed for manufactured home use, and it must be installed per manufacturer's instructions. MULTI -SECTION WATER CROSSOVER CONNECTIONS IMARRIAGE LINE WATER LINES FLEX CROSSOVER CONNECTOR (COPPER, POLYBUTYLENE, ETC.) I MARRIAGE LINE WATER LINES jt DIRECT PIPE CONNECTION Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 40 l'ETHOI) C (i) MARRIAGE LINE SHIPPING POSITION 1 ACCESS PANEL Drain, Waste and Vent System (DWV): INSTALL INSULATION BEFORE INSTALLING ACCESS PANEL (1) Portions of the DWV system which are below the floor may not have been installed, to prevent damage to the piping during transport. Typically, the DWV layout is designed to terminate at a single connection point to connect to the on-site sewer system. For a used home where on-site DWV connections are not assembled per the manufacturer's instructions, the DWV system must be assembled in accordance with Part 3280 of the FMHCSS. DRAIN, WASTE AND VENT FLOOR PIPING SYSTEM TYPICAL BOTTOM BOARD OF HOME FINISH OUTLET CROSSOVER CONNECTION START HERE DIRECTION OF FLOW Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 41 BOTTOM BOARD PLUMBERS TAPE, PLASTIC STRAPPIRG OR OTHER SUITABLE MATERIAL lillibi, 141111111111101410441446 MIN. 1X3 LUMBER lir DRAIN PIPE WITH MIN. 114" SLOPE TOWARDS OUTLET 4'-0 0.C. MAX. TYPICAL CROSS MEMBER —RIM JOIST PLUMBERS TAPE, PLASTIC" STRAPPING OR OTHER SUITABLE MATERIAL FASTENED TO FLOOR JOIST THROUGH BOTTOM BOARD 4'-O" 0.C. MAX. (2) The following guidelines apply: FLOOR JOIST OTTOM BOARD -DRAIN PIPE WITH 114" SLOPE MAIN I -BEAM (A) All portions of the DWV system shall be installed to provide a minimum of 1/8 inch slope per foot for a 3 inch diameter pipe or larger, in the direction of the flow. For all other pipe, a minimum of 1/4 inch is required. (B) Changes in direction from vertical to horizontal, and horizontal to horizontal, shall be made using long sweep elbows and/or tees. (C) All drain piping shall be supported at intervals not to exceed 4 feet on -center. The support may be either blocking or strapping. When strapping is used, it should be nonabrasive. (D) Piping must be assembled with the appropriate cleaners, primers and solvents (note: both ABS and PVC systems are common, but will require adhesives). Be sure to follow the instructions of the product used. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 42 (3) (E) A cleanout must be installed at the upper (most remote) end of the floor piping system. Water testing: At the time of installation the water system must be inspected and tested for leaks after completion at the site (the water heater must be disconnected when using an air -only test). (4) Drainage system testing: At the time of installation the drainage system must be inspected and tested for leaks after completion at the site. (j) Electrical Connections: Depending on the model and/or manufacturer of the home, electrical crossovers may be located in either the front end and/or rear end of the home. Check along mating line for other labeled access panels. (1) Crossover connections may be one of the following: (A) snap or plug-in type; (B) junction boxes inside floor cavity (note: crossover wiring routed outside the floor cavity must be enclosed in conduit). If the boxes and/or covers are metal, they must be grounded by the use of the ground wire; or (C) pigtail between receptacles/switches between sections (one circuit only and enclosed in a j -box according to the National Electrical Code (NEC). (2) Chassis Bonding: Each chassis shall be bonded to the adjacent chassis with a solid or stranded, green insulated or bare, number 8 copper conductor. The conductor is connected to the steel chassis with a solderless lug. Alternate bonding: A 4 inch wide by 30 gauge continuous metal strap may be used as an alternate, when attached to the chassis members with two #8x 3/4 inch self tapping metal screws each end of the strap. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 43 BONDING STEEL OUTRIGGER OR HEADER NEAR MARRIAGE LINE MARRIAGE LINE . SOLDERLESS LUG —I -BEAM L BARE COPPER WIRE COILED UP AT FACTORY. SECURE LOOSE END OF WIRE TO SOLDERLESS LUG ON OPPOSITE SIDE. NOTE: A 4" BONDING STRAP MAY BE USED INSTEAD OF COPPER WIRE BY ATTACHING THE STRAP TO BOTH UNITS WITH 2448X3l4" SFT F -TAPPING METAL SCREWS ON EACH SIDE. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 44 (3) Electrical Crossover. ELECTRICAL CROSSOVER -4— MARRIAGE LINE JUNCTION BOX JUNCTION BOX — I 141 I -FIFT Tl INSTALLED CROSSOVER CONNECTOR (LISTED FLEXIBLE OR RIGID CONDUIT) I 01' 115 VOLTS 4 - LACK 230 VOLTS JUNCTION BOX HOLES IN RIM JOISTS /FOR WIRING PASSAGE I I L _ J f IdACCESS PANEL FASTENED —' TO FR NvI NG WITH SCREWS 4 i 014 NM CABLE FOR BRANCH{r CIRCUITS WITH SUFFICIENT LENGTH FOR CROSSOVER COIJ Fn INSIDE JOIST BAY NOTE: ANY EXPOSED NM CABLEMUST BE PROTECTED BY CONDUIT AND INSTALLED IN ACCORDANCE WITH THE N.E.C. (4) Shipped loose equipment: (A) Electrical equipment such as ceiling fans, chandeliers, exterior lights, etc., which may have been shipped loose, must be installed in accordance with the adopted (NEC). Connect all corresponding color coded or otherwise marked conductors per the applicable sections of the NEC. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 45 (5) (B) Bonding strap removal: 240 volt appliances (range, dryer, etc.) shall have the bonding strap removed between the ground and the neutral conductors. Cords used to connect those appliances shall be four conductor, four prong. Main panel box feeder connection: The main panel box is wired with the grounding system separated from the neutral system (4 -wire feeder). The grounding bus in the panel must be connected through a properly sized green colored insulated conductor to the service entrance equipment (meter base) located on or adjacent to the home. A licensed electrician is required to run the feeder from the pole to the main panel box in the home. INTERIOR SERVICE PANEL 4 - Wire System Circuit Breakers Bonding Ground See NEC 310-12(b) for identifying equipment grounding conductors #8 Bare copper Ground to Frame Neutral Male Adapter w/Lock Nut Listed for use as t" Electrical Raceway Color coded Connections Junction Box conduit terminates below floor Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 46 MAIN PANEL BOX FEEDER CONDUCTOR SIZES Main Breaker size (amps) Raceway diameter Red/Black (power) White (neutral) Green (grounding) 50 1 #6 #6 #8 100 1 1/4 #2 or #3 #2 or #3 #6 150 1 I/2 #1/0 or #2/0 #2 #6 200 2 #3/0 #2 #6 (k) Fuel Gas Piping Systems: 11let1Lo d (1) Crossover Connections: All underfloor fuel gas pipe crossover connections shall be accessible and be made with the connectors supplied by the home manufacturer, or, if not available, with flexible connectors listed for exterior use and a listed quick disconnect (Method A), or a shut-off valve (Method B). When shut-off valve is used, it must be installed on the supply side of the gas piping system. The crossover connector must have a capacity rating (BTUH) of at least the total BTUH's of all appliances it serves. (2) Testing: The fuel gas piping system shall be subjected to an air pressure test of no less than 6 ounces and no more than 8 ounces. While the gas piping system is pressurized with air, the appliance and crossover connections shall be tested for leakage with soapy water or bubble solution. This test is required of the person connecting the gas supply to the home, but may also be performed by the gas utility or supply company. (3) The gas system must be inspected and tested for leaks after completion at the site. FUEL GAS PIPE CROSSOVER CONNECTIONS 1 Iethod B QUICK -DISCONNECT / MALE FITTING AND FLEX. DO NOT INSTALL ON INLET SIDE. FEMALE CAP MALE CAP !11111!1 t .LTIcIC- DIS CONNECT 1 FEMALE FITTING. INSTALL ON INLET SIDE. DIRECTION OF GAS FLOW CROSSOVER MUST BE LISTED FOR EXTERIOR USE. Flex C onne ctor D o I•I of Install Plir on Inlet Side. FEMALE CAP 11 II I T+I I� MALE CAP SHIIT-OFF VALVE INSTALL ON INLET SIDE. DIRECTION OF GAS FLAW CROSSOVER MUST BE LISTED FOR EXTERIOR USE. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 47 §80.26. Registration of Stabilizing Components and Systems. (Effective: January 29, 2008) (a) Installers shall use only prefabricated or site built stabilizing components and systems which are: (1) registered with the Department, (2) specified by the home manufacturer's DAPIA approved installation instructions, or (3) specified for one or more homes in a particular area by a Texas licensed engineer or architect. (b) Before accepting a registration of any prefabricated stabilizing component or system that will be used for more than one home or granting renewal of such, the Department will require the component or system to be certified by an engineer, architect, or independent testing laboratory. The engineer or architect may be licensed in any state. The independent testing laboratory must have at least one engineer or architect licensed in at least one state. The producer or vendor of the component or system must send a request letter to the Department with at least two copies of the certification report. The Department may accept certification reports in electronic formats. The certification report copies must have letter size (8.5 inch by 11 inch) or smaller pages. The producer or vendor must provide written permission to the Department to reproduce the certification report. If the Department accepts the registration of the certification report, the Department shall place a registration stamp on the copies, keep one copy, and return all other stamped copies to the producer or vendor. The registration stamp will include the following information: (1) the title "Texas Department of Housing and Community Affairs" Manufactured Housing Division; (2) the phrase "Registered stabilizing component or system"; and (3) the date of registration. (c) The Department will maintain a list of stabilizing components and systems that have been registered with the Department for use in Texas and will post a current copy of the list on the Department's website. (d) A report that certifies a stabilizing component or system shall contain, at the minimum, the following: (1) the name, address, phone number, facsimile number, and trademark of the agency issuing the certification report or the name, signature, license number, state where licensed, address, phone number, facsimile number, and seal of the engineer or architect; Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 48 (2) date of certification report; (3) the name, address, phone number, and facsimile number of the vendor or producer of the component or system; (4) drawing or photograph of component or system; (5) a description of the vendor's or producer's method for identifying the component or system; (6) at least a 2 inch by 4 inch blank space for the Department registration stamp on each page or the cover page of a bound document; (7) a unique number or other identification for the certification report; (8) the initial qualifying test report or information about how the report can be obtained; (9) a description of the continuing validation system and the time period of the certification; (10) detailed and specific installation instructions for the component or system, a copy of which that are shipped to each purchaser; (11) a description of the working load capacity for the component or system. If the component is a ground anchor, the anchor shall be certified by a professional engineer, architect or nationally recognized testing laboratory as to its resistance, based on the maximum angle of diagonal tie and/or vertical tie loading and angle of anchor installation, and type of soil in which the anchor is to be installed; (12) a description of all allowable conditions for use of the component or system such as (but not limited to) types of soil, weather exposure, atmospheric environment (rural, industrial, coastal), and characteristics of other associated components; and (13) a statement that the certifying independent testing laboratory, certifying engineer, or certifying architect certifies the component or system to be in conformance with all applicable standards adopted by the Department. This statement shall be on each page or shall be on the cover sheet of a bound document. (e) The Department adopts the applicable standards and publications set forth in Chapter 43 of the International Code Council, latest edition of the International Residential Code for materials used to fabricate stabilizing components and systems. The Department adopts the stabilizing component destruction test failure criteria of the FMHCSS (24 CFR, Part 3280) or latest edition of the International Residential Code, Appendix E. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 49 (f) Applicable reports of the following organizations are acceptable as certification reports: National Evaluation Service, Inc.; International Conference of Building Officials (ICBO) Evaluation Service, Inc.; Southern Building Code Congress International (SBCCI) Public Safety Testing and Evaluation Services, Inc.; Building Officials and Code Administrators International (BOCA) Evaluation Reports, Inc.; the International Code Council (ICC); or a successor of any of these organizations. (g) The Department may deny registration if the certification information: (1) is incomplete; (2) does not conform to the rules of the Department; (3) contradicts the qualifying tests; or (4) has contradictory statements. (h) Conditions that may cause the Board to issue an administrative order that withdraws registration from a stabilizing component or system may include but are not limited to: (i) (1) the engineer, architect, or independent testing laboratory withdraws the certification; (2) the engineer, architect, or independent testing laboratory improperly certified the component or system; (3) a significant characteristic of a device or system has been changed without a revision of the original certification; (4) the producer distributes installation instructions that are substantively different from those in the certification or original qualifying tests; (5) changes in the law, rules, or standards; (6) the continuing validation system for a component has been changed without a revision of the original certification; (7) information provided by the original certification is obsolete; (8) the Department receives evidence that the component or system often fails to anchor or support the home; or (9) the producer fails to provide test results after the Department directs the producer to test the component or system. The test will be performed by a recognized independent testing laboratory under the observation of a qualified representative or designee of the Department. Notice of withdrawal of registration of a component or system must be given to the producer and to all licensed installers, retailers, and manufacturers. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 50 (j) The Department's registration of a stabilizing component or system is valid for a period of ten (10) years or for the time period of certification, whichever is less. The registration expires at the end of the shorter period. (1) If the time period for certification exceeds the ten (10) year registration period, the producer of the stabilizing component or system may apply for a renewal of the registration. The renewal shall be valid for an additional period: (A) of ten (10) years; or (B) if the time period of certification expires prior to the end of the ten (10) year period, for a lesser period ending with the expiration of the time period of certification. (2) All Department approval letters issued prior to November 3, 1998, remain valid for a period of ten (10) years following the original effective date of this section and expire on November 3, 2008, or upon any previously assigned expiration date if that date is earlier. (k) A registration renewal request must be received from the vendor or producer of the component or system at least ninety (90) calendar days prior to the date the certification or registration expires. The request must supply the information necessary for the Department to issue a registration renewal. (1) Registered components and systems sold to retailers or installers prior to the expiration of the applicable registration or renewal may be used and installed for a period of not more than ninety (90) calendar days following the date of expiration of their approval, registration, or renewal. (m) Advertisements and instructions may not express or imply that the component or system has Department approval. SUBCHAPTER C. LICENSEES' RESPONSIBILITIES AND REQUIREMENTS §80.30. All Licensees' Responsibilities. (Effective: December 21, 2008) (a) A licensee, other than a salesperson, must maintain all required records at a location that meets the requirements of §1201.103(a-1) of the Standards Act. All records required by this chapter must be maintained in the licensee's files for a period of not less than six (6) years. Unless stated otherwise, a record of any disclosure to be given shall reflect that it was properly completed, executed, and dated. (b) A licensee must keep the Department advised in writing on a current basis of any changes in their licensing information and, where required by the Standards Act, give prior written notice. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 51 (c) If a licensee fails to provide any warranty listed in this subsection of the rules, the time limitations associated with the consumer's written notification do not start until the consumer is provided with such required warranty. (d) A license holder is prohibited from publishing or distributing any form of advertising which is false, deceptive, or misleading. (e) Any advertisement must comply with applicable federal and state legal requirements, including, but not limited to, the federal Truth in Lending Act and Federal Reserve Regulation Z. (f) Any advertisement by a retailer, broker, or installer (other than a sign/display advertisement at a licensed location, point of sale literature, or a price tag) must conspicuously disclose the license number of the person who is advertising. (g) Any advertisement by a salesperson must conspicuously disclose the name and license number of their sponsoring retailer identified on their valid salespersons license. (h) Where no consumer protection purposes would be served by requiring the license number to be disclosed, the Board may grant exceptions to subsections (f) and (g) of this section based on the Board's approved format. Exceptions will be posted on the Department's website. (i) Any licensee's website shall provide a conspicuously placed link to the Department's website. §80.31. Manufacturers' Responsibilities and Requirements. (Effective: November 6, 2011) (a) A manufacturer shall submit a monthly shipment report to the Department of all manufactured homes produced during the preceding month for shipment to any point in Texas. The report shall contain the following information: (1) the complete HUD label number(s); (2) the complete serial number(s); (3) the license number of the retailer to whom the home is sold and the location to which it is initially shipped; and (4) a designation as to single or multiple sections. (b) The manufacturer's monthly shipment report shall be filed with the Department by the 20th day of the month following the earlier of manufacture of the home and/or shipment. If a manufacturer has no sales or shipments to any person in the State of Texas during any month, the report must be filed stating such fact. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 52 (c) A manufacturer shall use the Manufacturer's Certificate of Origin (MCO) prescribed by the Department set forth on the Department's website for homes sold to retailers in Texas, on the reverse side of which shall be the data plate. (d) A manufacturer shall supply to the Department current and revised copies of approved installation manuals as required by §80.20 of this chapter (relating to Requirements for Manufacturer's Designs and Installation Instructions). (e) The term of a required warranty does not begin to run until a warranty that complies with the Standards Act is actually delivered. §80.32. Retailers' Responsibilities and Requirements. (Effective: November 23, 2014) (a) A retailer shall retain as a record of each sale a file for that sale containing a completed Retail Monitoring Checklist on the prescribed form, together with copies of all completed, executed, and signed applicable documents specified therein. (b) At the time of signing a contract for the sale or lease of a manufactured home, the retailer must disclose to the purchaser, a notice of the existence of a Dispute Resolution Program through HUD, either on a separate document from the sales contract or it may be incorporated clearly at the top of the sales contract. Disclosure of this requirement should be acknowledged by the consumer. (c) A retailer shall timely provide each consumer who acquires a manufactured home by sale, exchange, or lease purchase the applicable warranty or warranties specified in the Standards Act and any warranty regarding the home itself shall specify whether the warranty includes cosmetic items or not and, if it does include them, whether there are any limitations or special requirements, such as a walk-through punch lists, excluded items, or the like. (d) For each manufactured home taken into a retailer's inventory, a retailer shall maintain a copy of either a completed and timely submitted application for a statement of ownership and location to reflect the home as inventory or, once such a statement of ownership and location has been issued and received, a copy of that statement of ownership and location. (e) For each home altered or rebuilt from salvage a retailer shall retain the documentation required for rebuilding a manufactured home that is declared salvaged. (f) A retailer must provide their company name, license number, contact information on any sales agreement, and proof of purchase or confirmation of sale. (g) If a retailer relies on a third party, such as a title company or closing attorney, to file with the Department the required forms necessary to enable the Department to issue a Statement of Ownership and Location to a consumer, the retailer must provide an instruction letter to that third party, advising them of their responsibilities to make such filings and the required timeframes therefore. This does not relieve the retailer Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 53 from responsibility. The retailer must retain with their sale records a copy of that instruction letter and all documentation provided to such third party to enable them to make such filings. This optional form is available on the Department's website. (h) On a new manufactured home and on any used manufactured home where the sale, exchange or lease -purchase includes installation, the retailer must specify in the applicable contract or an accompanying written disclosure the intended date by which installation will be complete and a designated person to contact for the current status as to the intended date for completion of installation. For new manufactured homes, the retailer is responsible for ensuring that a licensed installer warrants the proper installation of the home and performs the required site preparation. (i) If any goods or services being provided by a retailer in connection with the sale and/or installation of a manufactured home, the retailer must disclose, in writing, the goods and/or services to be provided and a good faith estimate as to when they will be provided. (j) If any goods with a retail value of more than $250 are to be provided in connection with the sale of a manufactured home and they are not specified on the data plate for the home, the retailer must describe them in the retail installment contract, purchase memorandum, or other sale document in sufficient detail to enable a third party to provide them under the responsibility of the retailer's surety bond should the retailer fail to provide them as agreed. (k) A retailer accepting a deposit must give the consumer a written statement setting forth: (1) the amount of such deposit; (2) a statement of any requirements to obtain or limitations on any such refund; and (3) the name and business address of the person receiving such deposit. (1) A retailer may not represent to a consumer that is purchasing a manufactured home with interim financing that the consumer will qualify for permanent financing if the retailer has any reason to believe that the consumer will not qualify for such permanent financing. (m) A retailer may not increase the advertised price at which a manufactured home is to be sold based on the consumer's decision to make the purchase with or without financing provided by or arranged through the retailer. (n) A retailer may not request or accept any document that is executed in blank or allow any alteration to a completed document without the consumer's initialing and dating such changes to indicate agreement to them. Where information is not available, a statement of that fact (e.g., TBD — to be determined, not available, N/A, not applicable, or the like) may be entered in the blank. A consumer must be provided with copies of all documents they execute. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 54 (o) A retailer may not knowingly accept or issue any check or other form of payment appearing on its face to be a bona fide payment but known not to represent good funds. (p) In order to comply with the provisions of § 1201.107(d) of the Standards Act, a retailer or broker must: (q) (1) have a current, in effect surety bond issued in the most recent form promulgated by the Department; and (2) the applicable sales agreement must identify the surety bond that applies to the transaction and contain the following statement: "The above-described surety bond applies to this transaction in the following manner: The bond is issued to the Texas Manufactured Homeowners' Recovery Trust Fund (the "Fund"), a fund described in the Texas Manufactured Housing Standards Act (Tex. Occ. Code, Chapter 1201) and administered by the Director. If the Fund makes a payment to a consumer, the Fund will seek to recover under the surety bond. The obligation of the Fund to compensate a consumer for damages subject to reimbursement by the Fund is independent of the Fund's right or ability to recover from the above-described surety bond, but recoveries on surety bonds are an important part of the Fund's ability to maintain sufficient assets to compensate consumers. There can be no assurance that the Fund will have sufficient assets to compensate a consumer for a covered claim. Assuming it has sufficient assets to compensate a consumer for a covered claim, the liability of the Fund is limited to actual damages, not to exceed $35,000." A retailer shall maintain on a current basis a separate file for each salesperson sponsored by that retailer reflecting: (1) that they are licensed in accordance with the Standards Act; (2) the date of the initial licensing class that they attended and a copy of their certificate of completion; (3) evidence of the successful completion of any required continuing education classes that they attended; and (4) a copy of any written notice to the Department that sponsorship was terminated and the effective date thereof. (r) At each licensed location a retailer shall display their current license for that location and the current license of each salesperson who works from that location. (s) At each licensed location a retailer shall conspicuously display the Consumer Protection Information sign as set forth on the Department's website. (t) Auction of Manufactured Housing to Texas Consumers. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 55 (1) A person selling more than one home to one or more consumers through an auction in a twelve (12) month period must be licensed as a retailer, each individual acting as their agent must be licensed as a salesperson, and each specific location at which an auction is held must be licensed and bonded in accordance with the Standards Act. (2) Acting as an auctioneer may be subject to the Texas Auctioneer Act, Occupations Code, Chapter 1802. (3) The retailer must notify this Department in writing at least thirty (30) calendar days prior to the auction with such notice to contain the date, time, and physical address and location of a proposed auction or, if they recur on a scheduled basis, of the schedule. (u) The written warranty that the used manufactured home is habitable as per § 1201.455 of the Standards Act, shall have been timely delivered if given to the homeowner at or prior to possession or at the time the applicable sales agreement is signed. (v) The written manufacturer's new home construction warranty per §1201.351 of the Standards Act, shall be timely delivered if given to the homeowner at or prior to the time of initial installation at the consumer's home site. §80.33. Installers' Responsibilities and Requirements. (Effective: November 6, 2011) (a) If the retailer subcontracts installation to another licensed installer, their respective responsibilities are as set forth in the Standards Act. (b) For used manufactured homes, the person contracting with the consumer for the installation of the home is the installer and must warrant the proper installation of the home. If the contracting installer subcontracts with an independent licensed installer, then the subcontractor is jointly and severally liable for that portion of the installation that the subcontractor performed. (c) A person contracting directly with the consumer for only the transportation of a manufactured home to its site is not deemed by virtue of being the transporter to also be the installer. (d) The contracting licensed installer is fully responsible for the complete installation in accordance with all applicable requirements set forth in this chapter even though the installer may subcontract certain installation functions to independent contractors pursuant to § 1201.102(b) of the Standards Act. It is unlawful for a subcontractor who is acting as an agent for a licensed installer to advertise and/or offer installation services to any person unless the licensed installer's name and license number appear conspicuously in the advertisement. (e) A person contracting for the installation of a manufactured home must specify in the applicable contract or an accompanying written disclosure the intended date by Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 56 which installation will be complete and a designated person to contact for the current status as to the intended date for completion of installation. An installer shall provide the Department with a list of all subcontractors approved to work under the installer's license number. For each installation completed, the contracting installer must complete a Notice of Installation and submit the original, signed form with the required fee to the Department no later than seven (7) days after which the installation is completed, but not later than three (3) days for installers with a provisional license. If an installer submits multiple installation reports at one time, a single payment for the combined fees may be submitted. (h) The completed Notice of Installation may, within the time frames specified in subsection (g) of this section be submitted with an application for Statement of Ownership and Location but is not a requirement to obtain a Statement of Ownership and Location. Copies must be labeled as such. The licensed installer who is listed on a Notice of Installation is presumed to be the installer primarily responsible for the installation and the person to whom any warranty orders, notices of inspection, or other communications from the Department regarding the installation shall be directed. (i) Electrical, fuel, mechanical, and plumbing system crossover connections for multi - section homes, and completion of drain lines underneath all homes in accordance with the requirements of this chapter and installation of steps or legally compliant ramps to any exterior door that will be 12 inches or more above ground level are installer responsibilities and cannot be excluded by wording of the installation contract when provided by or installed by the installer. The installation of air conditioning at the home site must be performed by a licensed air conditioning contractor. The installation and ventilation of skirting or other material that encloses the crawl space underneath a manufactured home is an installer responsibility, if it is part of the sales or installation contract. (j) A checklist must be maintained in the files. The checklist must consist of the following: (1) the HUD label number or Texas seal number and the serial number; (2) verification of the soil condition(s) at the installation site; (3) if installed on piers or pads, verification of the calculation of pier spacing; and (4) a list of each approved component or device used in the installation. (k) Each installer shall maintain the following books and records for each installation: (1) verification that the required site preparation notice for a used home was signed by the consumer and timely delivered to a consumer by the licensee; Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 57 (2) a copy of each installation warranty provided to a consumer with evidence that the warranty was timely delivered to the consumer; (3) if the used home is to be installed on a site that has evidence of ponding, run- off, or uncompacted soil, a signed form from the consumer, acknowledging the condition and accepting the risks, such form to be as set forth on the Department's website and §1201.255 of the Standards Act; (4) a list of the components used. If reconditioned components are used the identifying numbers must be legible; (5) if installed to manufacturer's instructions, a copy of those instructions, as in effect at the time of installation (one copy on-site is sufficient; a separate copy does not need to be maintained for each installation); (6) if installed to engineer -approved plans (other than manufacturer's instructions or state generic) a copy of the actual plans, showing the Texas engineer's stamp; (7) (8) a copy of any agreement with another party to obtain or provide some or all of the installation services; and a list of all unlicensed individuals who provided installation services under the installer's license, indicating each installation on which they worked. (1) An installer shall conspicuously disclose their license number on all advertisements and contracts for installation services. §80.34. Brokers' Responsibilities and Requirements. (Effective: November 6, 2011) (a) For each transaction where a broker is engaged to provide services, a broker shall retain the disclosure statement set forth on the Department's website. (b) For each home sold by a consumer in a brokered sale, the broker shall retain a file for that sale with copies of all required warranties and disclosures, other than a habitability, that would have been given if the sale was through a retailer. §80.35. Salesperson's Responsibilities and Requirements. (Effective: December 30, 2007) (a) A salesperson may not act in any capacity beyond the scope of a salesperson unless they are legally authorized to do so. (b) A salesperson may not collect any monies in connection with a manufactured home transaction except in the name of the sponsoring retailer or broker. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 58 §80.36. Retailer's Rebuilding Responsibilities and Requirements. (Effective: November 23, 2014) (a) Any home which has sustained sufficient damage to be declared salvage as defined in §1201.461 of the Standards Act, may be rebuilt/repaired for purposes of issuance of a manufactured Statement of Ownership and Location at the option of the Department after inspection in accordance with Department procedures. Notification in writing to the Department at its Austin headquarter's office shall be required before rebuilding/repair begins. (b) The retailer must: (1) notify the Department in writing ten (10) business days before rebuilding (or monthly for continuous activity) and provide the following, if available: (A) HUD or Texas Seal number; (B) data plate and comfort cooling certificate information (applicable wind and roof load zones, manufacturer's name and address, home model, list of appliance models, home production date, thermal zones, transmission coefficients, furnace certification temperatures, and duct capacity for cooling); (C) copy of salvage declaration report if salvaged by an insurance company; (D) description of damage; (E) description of cause of damage (water, wind, impact, fire, etc.); and (F) location of home during rebuilding. (2) provide a plan for rebuilding, sealed by a licensed professional engineer, that contains the following: (A) drawings and specifications that describe the rebuilding; (B) if more than one home is rebuilt in any one (1) month period, then a quality assurance manual that describes the following: (i) system testing; (ii) inspection process of cavities before concealment; and (iii) record keeping. (C) list of new parts and appliances; (D) list of reused or salvaged parts and appliances; and Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 59 (3) (4) (5) (6) (7) (E) rebuilder's data plate (if applicable). notify the Department when concealed cavities will be exposed for Department inspectors; remove damaged material and equipment; add new or used materials and equipment; repair all defects; and repair and test all systems. (c) The Department may schedule inspections of the home during the rebuilding process. (d) A manufactured home which has not sustained sufficient damage to be declared salvage may be refurbished to its original structural configuration so that it is habitable as defined by § 1201.453 of the Standards Act. §80.37. Correction Requirements. (Effective: April 25, 2010) (a) The retailer, installer, or manufacturer shall take immediate corrective action when notification is received from a consumer and the nature of the complaint indicates an imminent safety hazard or serious defect. (b) Except as provided in subsection (a) of this section, manufacturers, retailers, and installers shall perform their obligations in accordance with their respective written warranty within a reasonable period of time. A reasonable period of time is deemed to be not more than thirty (30) calendar days following receipt of the consumer's written notification unless there is good cause requiring more time. The consumer's written notification must be given: (1) within the one (1) year manufacturer's and retailer's warranty period for new homes; (2) within two (2) years for the installer's warranty period; and (3) for used homes within sixty-five (65) calendar days after the date of the sale or installation, whichever is later. (c) The manufacturer, installer, and retailer shall make available for review by Department personnel, records relating to their respective warranty responsibilities, to assure that warranty work has been accomplished and that warranty work has been done in accordance with design or standards criteria and properly completed. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 60 §80.38. Right to Advance Copy of Certain Documents. (Effective: November 6, 2011) (a) A consumer may modify or waive the right to rescind the deadlines for disclosures before the execution of the contract if the consumer determines that the purchase transaction is needed to meet a bona fide emergency. To modify or waive the right, the consumer shall give the retailer a dated written statement that describes the emergency, specifically modifies or waives the notice periods, and bears the signature of all the consumers entitled to the disclosures and right of rescission. Printed forms for this purpose are prohibited, except as set forth on the Department's website. (b) Printed forms may be used to the rights as provided for in §1201.164 of the Standards Act only if: (1) The Governor of the State of Texas has declared an emergency to exist in the location where the home is to be located; (2) The basic form set forth on the Department's website is used; and (3) The Director has reviewed and approved the language used to describe the specific declared emergency. SUBCHAPTER D. LICENSING §80.40. Security Requirements. (Effective: November 23, 2014) (a) For purposes of meeting the security requirements of §1201.105 of the Standards Act, "other security" means a deposit in a state or federally chartered bank or savings and loan association. If other security is posted, the other security must be maintained in or by a banking institution located in this state subject to a control agreement in the promulgated form set forth on the Department's website. Such deposits are hereinafter referred to as security. If such security is reduced by a claim, the license holder shall, within twenty (20) calendar days, make up the deficit as required by §1201.109(c) of the Standards Act. No advance notice is required by the Department to the license holder, but the Department shall verify of the deposit. (b) Any other security provided for compliance with §1201.105 of the Standards Act, shall remain in place and subject to a control agreement in favor of the Department for two (2) years after the person ceases doing business as a manufacturer, retailer, broker, or installer, or until such later time as the director may determine that no claims exist against the other security. The Director may consent to the substitution of a bond or a different qualifying deposit for other security provided that in the event a bond is filed to replace the assigned security, the initial effective date of the bond is the same or prior to the date of the assignment of security. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 61 (c) If a required bond is canceled during the license period, the license shall be automatically suspended on the date bond coverage ceases. (d) To be exempt from the additional security as required by §1201.106(b) of the Standards Act, a manufacturer who does not have a manufacturing plant in this state must have a bona fide service facility. (1) The manufacturer shall provide the Department with the name, address and phone number of the service facility, conspicuous notice of which shall be provided to each Texas retailer who purchases homes from the manufacturer. (2) The service facility shall be capable of compliance with the provisions of Sub -part I of the Manufactured Housing Improvement Act (latest edition) and capable of providing warranty service within the reasonable time requirements set by the Department in §80.73 of this chapter (relating to Procedures for Handling Consumer Complaints), and shall be subject to periodic review and inspection by Department personnel. (3) If the Department determines that the requirements of paragraph (2) of this subsection have not been met, notice must be sent of that determination and of the requirement of an additional bond amount. (4) Unless additional security is provided as required by the Standards Act, all out of state manufacturers must disclose their in-state service facility on each renewal of their license. (e) In order for the Board to direct the Director to stop accepting bonds issued by a surety for reasons outlined in § 1201.105(c) of the Standards Act, the Department experiences significant problems if: (1) the surety fails on three (3) or more occasions to make the required reimbursement payment within thirty (30) calendar days from the date of notice from the director that a consumer claim has been paid; or (2) is more than sixty (60) calendar days late in making a required reimbursement payment. (f) If the director stops accepting bonds issued by a surety for reasons set forth in subsection (e) of this section, all licensees who are bonded by the affected surety will be notified immediately so they can supply the Department with a new valid bond when they renew their license. If a licensee fails to supply the Department with a new valid bond when they renew their license, their license is automatically suspended until the licensee provides a new valid bond. §80.41. License Requirements. (Effective: November 23, 2014) (a) General License Requirements. In order to apply to obtain a license, the promulgated form of application for such license must be fully completed and Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 62 executed and submitted to the Department, accompanied by the required fee, required security, and all other required supporting documentation. The Department may request any reasonably related additional information or documentation to clarify or support any application. (1) Additional provisions applicable to salespersons. (A) A salesperson is an agent of their sponsoring retailer or broker. The sponsoring retailer or broker is liable and responsible for the acts or omissions of a salesperson in connection with any activity subject to the Standards Act or this Chapter. It is a violation of the Standards Act and this chapter for a retailer or broker of manufactured housing to employ a salesperson who is not licensed with the Department or permit them to conduct business subject to the Standards Act on their behalf. (B) If a salesperson's sponsoring retailer or broker is no longer licensed, that salesperson's ability to act and a salesperson is automatically terminated until such time as he or she is acting under a duly licensed sponsoring retailer or broker and such sponsorship is on record with the Department. A salesperson shall surrender his or her license to the Department within ten (10) calendar days of termination from his or her sponsoring retailer. (C) A sponsoring retailer or broker shall notify the Department in writing when a salesperson has been terminated or is no longer sponsored by said retailer or broker. (D) A salesperson's sponsoring retailer or broker shall be issued a license card by the Department containing effective date and license number and name and license number of the sponsor. A salesperson shall be required to present a copy of a valid license card upon request. (2) Additional provisions applicable to installers. (A) A provisional installer's license shall become a full installer's license as outlined in §1201.104(f) of the Standards Act when the Department inspects a minimum of five (5) manufactured home installations and found not to have any identified installation violations. (B) It is the responsibility of an installer who is still on a provisional status to notify the Department of each installation performed promptly. As used in this section, "promptly" means sufficiently early to enable the home to be inspected prior to any skirting being installed, in any event within three business days following the date of completion of the installation. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 63 (C) It is the responsibility of the Department's field office to notify the Department's licensing section when a provisional installer's license is eligible for upgrade to a full installer's license. (b) Applicable License Holder Ownership Changes. (1) A license holder shall not change the location of a licensed business unless the license holder first files with the Department: (A) a written notification of the address of the new location; (B) an endorsement to the bond reflecting the change of location; and (C) the original license. (2) The change of location is not effective until all requirements are received by the Department. (3) For a change in ownership of less than fifty percent (50%) of the licensed business entity, no new license is required provided that the existing bond or other security continues in effect. However, the current Articles of Incorporation or Assumed Name Certificate must accompany the request. (4) For a change in ownership of fifty percent (50%) or more, the license holder must file with the Department, along with the appropriate fee and Articles of Incorporation or Assumed Name Certificate: (A) a license addendum by the purchaser providing information as may be required by the Department; and (B) certification by the surety that the bond for the licensed business entity continues in effect after the change in ownership; or (C) an application for a new license along with a new bond or other security and proof that the education requirements of §1201.113 of the Standards Act, have been met. (c) Education. (1) The Standards Act requirement for an initial eight (8) hour course of instruction in the law, including instruction in consumer protection regulations; four (4) hour retailer education course; and/or four (4) hour installer education course shall be offered quarterly by the Department. Subject to limitations on Department resources, the Department will make special licensing classes available upon written request. (2) Each test to be administered in connection with the course(s) will consist of a representative selection of questions from an approved set of questions Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 64 (3) approved by the Director. The test(s) will be open -book. A score of 70% correct is required to pass each test. For initial licensing of a salesperson, if the salesperson does not attend and successfully complete the initial licensing class provided by the Department within 90 days after the date of licensure, the license will automatically be suspended until the salesperson has attended and successfully completed that class. While the license is in a suspended status the salesperson may not act as a manufactured housing salesperson. (d) Continuing Education. (1) Continuing education program courses must total eight (8) hours and shall include: (A) A minimum of two (2) hours of continuing education addressing the law and rules with a focus on any revisions to the Code or Rules within the preceding two years. (B) A minimum of one (1) hour of continuing education addressing the Department's current complaint resolution process. (C) The following additional topics may be covered to satisfy the remaining credit hours needed not addressed in subparagraph (A) or (B) of this paragraph. (i) installation requirements; (ii) manufactured home financing; (iii) operation of manufactured home parks and communities; (iv) insurance requirements; (v) industry best practices; (vi) business ethics; (vii) topical market statistics or trends; or (viii) other subjects determined by the Department to relate directly to the lawful operation of a business subject to the Code. (2) Acceptable evidence that the requirements of §1201.113(b) of the Standards Act have been satisfied by the license holder or their related person on record with the Department, would be a certificate, letter, or similar statement provided by the approved education provider indicating that the education program was timely completed. Such evidence may be submitted by fax, mail, e-mail, or in person. (3) For license renewal, evidence of any required completion, with reference to license number, must be received by the Department before a license may be renewed. (4) Approval of courses and providers. In order to be considered for approval by the Board to provide continuing education courses, including prospective Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 65 continuing education courses in accordance with paragraph (5) of this subsection, a party wishing to be considered for such approval must submit an application, accompanied by the nonrefundable processing fee, and the following: (A) A narrative overview of each course, describing subject matter to be covered; (B) Brief biographies, including credentials of each instructor demonstrating in depth knowledge of the subject matter to be taught; (C) A copy of any course materials to be used. If the course materials are deemed to be proprietary they should be placed in a separate envelope, marked confidential, and accompanied by a written statement as to why they should not be treated as open records. There is no assurance that such materials will ultimately be accorded any exemption from disclosure under the Open Records provisions of the Government Code; (D) A schedule of any fees to be charged for each course; (E) If completion of the continuing education program is limited to any particular group, a description of the limitation; (F) As such information becomes available, an indication as to the locations, times, and dates for offerings; and (G) Such other information as the Department may require. (5) Prospective continuing education programs, including all portions of education courses, must be pre -approved by the board prior to the course being held or broadcast. (6) Once the Department determines that a request for approval is complete, that request will be placed on the next regularly scheduled meeting of the Board for consideration. The Department will provide the board with a written recommendation on each such request. The staff will advise the applicant of the board's action within ten (10) business days of the date of the board meeting, including a written statement as to any limitations, conditions, or other requirements imposed. (A) Approvals shall be for a period not to exceed two years. The Department may, at no cost, attend or send a representative to attend any approved portion of the continuing education program to determine that the courses are being taught in accordance with the terms of approval. (B) The Department may revoke or suspend approval of a continuing education program if the Department determines that any of the Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 66 courses are not being taught in accordance with the terms of approval or that any of the courses are not being administered in accordance with the law or these rules. Any action to revoke or suspend such an approval is a contested matter under Chapter 2001, Government Code, and the party against whom revocation or suspension is sought may make a written request for a hearing before an Administrative Law Judge. If no such hearing is requested within thirty (30) calendar days after receipt of notice from the Department, the Department order of suspension or revocation shall become final. (e) License Application and Renewal. (1) Initial Application Processing. (A) It is the policy of the Department to issue the license within seven (7) business days after receipt of all required information and the following conditions have been met: (i) (ii) all requirements of applicable statutes and this Chapter have been met. all required forms are properly executed; and (B) License applications and accompanying documents found to be incomplete or not properly executed shall be returned to the applicant with an explanation of the specific reason and what information is required to complete license. (C) Upon request, the Department will disclose the license number assigned and the effective date for a license that has been approved but not yet delivered to the license holder. (2) License Renewal Requirements. It is the responsibility of a license holder to renew the license prior to its expiration date. (A) In order to prevent the expiration and lapse of a license, a complete application for license renewal must be received by the Department prior to the date on which the current license expires. (B) If an application for license renewal is received by the Department after the date on which the current license expires, the license will not be issued without the required late fees identified in §1201.116(d) and (e) of the Standards Act. (3) Payment of license fees. (A) All required fees must be paid in order to obtain a valid license, including a renewal license, from the Department. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 67 (B) Any license issued by the Department is void and of no effect if based upon a check or other form of payment that is later returned for insufficient funds, closed account, or other reason, regardless of whether the Department notifies the applicant of the insufficiency of payment or the invalidity of the license. (C) It is the applicant's responsibility to ensure that all licensing fees are paid in valid U.S. funds. (4) Fingerprints and Criminal History Check. (A) Prior to initial application on or after September 1, 2013 or the first renewal of a license expiring on or after September 1, 2013, license applicants must submit a complete and legible set of fingerprints to a vendor approved by the Department of Public Safety, for the purpose of a criminal background check, which will be provided to the Department. (B) The license applicant shall be responsible for the cost. (f) License Application or Renewal Denial. (1) In the evaluation of an applicant for a license other than a salesperson's license, the Director shall consider whether the applicant or any related person involved with the applicant has previously: (A) been found in a final order to have participated in one or more violations of the Standards Act that served as grounds for the suspension or revocation of a license; (B) been found to have engaged in activity subject to the Standards Act without possessing the required license; (C) caused the trust fund to incur unreimbursed payments or claims; (D) failed to abide by the terms of a final order or agreed final order, including the payment of any assessed administrative penalties; or (E) had any state license revoked for violations of a law or rule. (2) If any of the preceding factors is present with respect to the applicant or any related person involved with the applicant, the director will further determine - (A) whether all appropriate corrective action has been taken; (B) whether the applicant has adopted policies and procedures or taken other appropriate measures to prevent recurrences; and Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 68 (3) (C) whether additional conditions or limitations on the license would be appropriate. In determining whether an applicant should be issued a license if that applicant states in his/her application for said license that he/she has a criminal record, which may include a conviction, deferred adjudication, plead guilty, or nolo contendere for any felony or misdemeanor offense, other than a Class C Misdemeanor for traffic violations, within five (5) years preceding the date of the application, the Director shall consider the factors set out in Texas Occupations Code, §53.022: (A) the nature and seriousness of the crime; (B) the relationship of the crime to the intended manufactured housing business activity; (C) the extent to which a license holder might engage in further criminal activity of the same or similar type as that in which the applicant previously had been involved; (D) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the functions and responsibilities of the license holder's occupation or industry; and (E) whether the offenses were defined as crimes of moral turpitude by statute or common law, from Class A misdemeanors to first, second, and third degree felonies carrying fines and/or imprisonment or both. Special emphasis shall be given to the crimes of robbery, burglary, theft, embezzlement, sexual assault, and conversion. (4) In addition to the factors that may be considered in paragraph (3) of this subsection, the Department, in determining the present fitness of a person who has a criminal record, may consider the following: (5) (A) the extended nature of the person's past criminal activity; (B) the age of the person at the time of the commission of the crime; (C) the amount of time that has elapsed since the person's last criminal record; (D) the conduct and work activity of the person prior to and following the criminal record; and (E) evidence of the person's rehabilitation or attempted rehabilitation effort while incarcerated or following release. The applicant shall furnish proof in any form, as may be required by the Department, that he/she has maintained a record of steady employment and Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 69 has otherwise maintained a record of good conduct and has paid all outstanding court costs, supervision fees, fines, and restitution as may have been ordered in all criminal cases. (6) If the Department suspends or revokes a valid license, or denies a person a license or the opportunity to be considered for a license in accordance with this subsection because of the person's prior criminal record and the relationship of the crime to the license, the Department shall: (A) notify the person in writing stating reasons for the suspension, revocation, denial, or disqualification; and (B) offer the person the opportunity for a hearing on the record. If the person does not request a hearing on the matter within thirty (30) calendar days from receipt of the Department's decision, the suspension, revocation, or denial becomes final. (g) Exemption for Retailer's License Requirement. (1) Application for Exemption of Retailer's License Requirement. (A) A person requesting exemption from the Retailer's licensing requirement of §1201.101(b) of the Occupations Code, shall submit the required application outlining the circumstances under which they are requesting exemption from licensure. (B) Applications should identify the HUD label or serial number(s) of the homes being sold under exemption; (C) Applications will be processed within seven (7) business days after receipt of all required information. (2) The circumstances under which this exemption is granted are: (A) One-time sale of up to three (3) manufactured homes in a 12 -month period as personal property; (B) Non-profit entity transferring ownership of up to three (3) manufactured homes in a 12 -month period; (C) No other manufactured homes have been purchased and resold in the previous twelve (12) months, even with a previous exemption; and/or (D) Other circumstances deemed appropriate by the Executive Director. (3) Letter of Exemption. (A) Once granted, a Letter of Exemption from licensure will be issued by the Executive Director to the applicant. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 70 (B) Letter of Exemption is valid only for the manufactured home(s) specified. (C) Letter of Exemption is valid only for twelve (12) months. SUBCHAPTER E. ENFORCEMENT §80.70. Enforcement. (Effective: March 25, 2012) (a) A licensee shall not obstruct or hinder any inspection, investigation, or enforcement efforts being carried out by the Department. (b) Subpoenas or any other order issued by the Director may be served by any person acting on behalf of the Director. §80.71. Rules for Hearings. (Effective: March 25, 2012) (a) Unless otherwise expressly set forth in the Standards Act or this chapter, all hearings shall be held and conducted pursuant to the applicable provisions of Government Code, Chapter 2001. (b) Any party to a hearing may request that a record of the hearing be made and transcribed by an independent court reporter, other than an employee of the Department. Such request must be made not later than seven (7) calendar days prior to the hearing. The additional cost and expense of the independent court reporter may be assessed against the party making the request. (c) Notice of a hearing shall specify all state and federal laws, rules, and regulations, including but not limited to, if applicable, HUD regulations, that the Department believes are relevant to any issue to be involved in the hearing. (d) If, after receiving notice of a hearing, a party fails to appear in person or by representative on the day and time set for hearing or fails to appear by telephone in accordance with Government Code, Chapter 2001, also known as the Administrative Procedures Act, the hearing may proceed in that party's absence and a proposal for decision may be entered by default, accepting all facts and conclusions of law as deemed admitted. (e) Pursuant to the Administrative Procedures Act, each party has the right to file exceptions to the Proposal for Decision and present a brief with respect to the exceptions. All exceptions must be filed with the Department within ten (10) business days of the Proposal for Decision, with replies to be filed ten (10) business days after the filing of exceptions. (f) When an administrative hearing is held for any matter in which the Department seeks to take action against a licensee for violating the Standards Act or these rules, Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 71 (g) whether such action is an action to assess administrative penalties, to require corrective action, to require cessation of improper activities, to suspend or revoke a license, or any combination thereof, the Department shall assess the costs of the proceeding against any party that fails to appear at a duly noticed administrative hearing. The costs assessed shall be the greater of $100 or the actual costs charged to the Department by the State Office of Administrative Hearings, the Office of the Attorney General, any court reporter, or any other third party providing services in connection with such hearing. The Department will seek the recovery of its costs from any party against whom it initiates an action if that action results in the entry of a final order taking any administrative action against that party, including the assessment of administrative penalties, requiring corrective action, requiring cessation of improper activities, suspension or revocation of a license, or any combination thereof. §80.72. Sanctions and Penalties. (Effective: March 25, 2012) (a) In accordance with the provisions of §1201.605 of the Standards Act, the Director may assess and enforce penalties and sanctions against a person who violates any applicable law, rule, regulation, or administrative order of the Department. (b) The determination of any penalties or other sanctions to be assessed shall be based on the consideration of statutory factors and whether the person against whom such penalties and/or sanctions are to be assessed has timely and in good faith taken the necessary steps to achieve, to the extent feasible, full compliance with all applicable state and federal laws, rules, and regulations and taken appropriate measures to prevent future violations. (c) When a licensee first receives written notification of a claim for warranty service, the licensee must respond promptly to the request. A failure to do so shall constitute a violation of this chapter. (d) Immediate corrective action is required if the matter involves an imminent safety hazard. (e) If, after reasonable investigation, a licensee disputes whether warranty service is required and the licensee is unable to resolve the matter by agreement with the consumer, the licensee may request that the Department perform an inspection of the home. The running of the time to respond to the request for warranty service will be suspended from the time the request for inspection is received until the Department performs the inspection and issues its findings. When the Department concludes its review it will work with the affected licensee(s) and consumer(s) to agree upon a reasonable time to address its findings. In the event the parties cannot agree on a reasonable time, the Director shall issue a revised order assigning a time for compliance. An agreed or ordered time to respond to a request for warranty service may be extended by the Director in response to a request setting forth good cause for the extension. Any such request must be made to the Director prior to the expiration Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 72 of the allotted time for response. Requests may be made by U.S. First Class mail, by FAX, or by e-mail, or, if followed with written confirmation sent U.S. First Class mail, or by telephone. (f) Any and all penalties are IN ADDITION to full compliance with the Standards Act and Rules (i.e., full, prompt corrective action, restitution, or whatever else the Standards Act and rules would have required in the first place). Failure to provide such compliance on a timely basis, as specified in the applicable order, will be deemed to be a violation of the order and serve as a basis for pursuing additional administrative action, including the assessing of additional penalties and the pursuit of suspension or revocation of licenses. (g) The Department offers, at no charge, alternative dispute resolution as an inexpensive and informal way of attempting to resolve any claim or dispute. Depending on the parties, this may involve informal meetings or non-binding mediation. Alternative dispute resolution is available upon request. In the event that a disputed matter cannot be resolved in this manner, the Department reserves the right to pursue all other lawful means of resolution including, but not limited to, pursuit of administrative remedies. §80.73. Procedures for Handling Consumer Complaints. (Effective: March 25, 2012) (a) A complaint may be initiated by a consumer or by the Department. Unless the Department determines that it is appropriate to proceed in another manner a copy of the complaint will be provided to each person involved. The letter shall request a written response within ten (10) calendar days unless the Department determines that a longer or shorter period is warranted. (1) If the consumer has not previously notified the manufacturer, retailer or installer, the Department will forward the written notification to the manufacturer, retailer, or installer. This will constitute written notice of a request for warranty service. (2) If the consumer has previously provided written notification to the manufacturer, retailer or installer of the need for warranty service or repairs, but believes such has not been completed in a satisfactory manner, the Department shall perform a home inspection, if required. If a home inspection is performed and violations are found, the Department will assign responsibilities for repair, and notify the manufacturer, retailer, installer, and consumer of their responsibilities to complete such warranty or service repair in accordance with §1201.356(c) of the Standards Act. (b) The Department shall make a consumer complaint home inspection upon request. (1) Consumer Request. The consumer may, at any time, request that the Department perform a consumer complaint home inspection. A written complaint regarding failure to provide warranty work is deemed to be a Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 73 request for a consumer complaint inspection. No written complaint form is required if a possible imminent safety hazard exists. (2) Industry Request. Manufacturer or retailer requests for a consumer complaint home inspection must be signed, shall identify the home by HUD label and serial number(s), and shall provide the necessary information for the Department to contact the consumer and determine the physical location of the home. The manufacturer or retailer may request a consumer complaint home inspection if the manufacturer or retailer: (A) believes that the consumer's complaints are not covered by the respective written warranty, or implied warranties; (B) believes that the warranty service was previously properly provided; or (C) has a dispute as to the respective responsibilities pursuant to the warranties. (3) The Department will perform the inspection within thirty (30) calendar days from the date an inspection is requested. (A) The consumer, manufacturer, retailer, and installer, as applicable, shall be notified of the scheduled inspection. (B) The person conducting the inspection shall inspect all matters (relating to the home and/or the installation of the home) set forth in the complaint and any other items raised at the inspection. (C) The person conducting the inspection will issue a report of inspection, completed to reflect the findings of the inspection. (c) The retailer, installer, or manufacturer shall take immediate corrective action when notification is received from a consumer and the nature of the complaint indicates an imminent safety hazard or serious defect. (d) Except as provided in subsection (c) of this section, manufacturers, retailers, and installers shall perform their obligations in accordance with any assigned order for corrective action pursuant to §1201.356(c) of the Standards Act within a reasonable period of time. A reasonable period of time is deemed to be thirty (30) calendar days following receipt of the order from the Department unless there is good cause requiring more time. (e) When service or repairs are completed following any notice or orders from the Department pursuant to §1201.356(a) of the Standards Act, the manufacturer, retailer, and/or installer shall forward to the Department copies of service or work orders reflecting the date the work was completed, or other documentation to establish that the warranty service or repairs have been completed. A consumer is not required to sign the service or work order. These service or work orders must be Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 74 received by the Department within five (5) calendar days after the expiration of the period of time specified in the warranty order issued by the Department. Corrective action taken is subject to re -inspection. (f) If service or repairs cannot be made within the specified time frame, the license holder shall notify the Department in writing prior to the expiration of the specified time frame by certified mail. The notice shall list those items which have been, or will be, completed within the time frame and shall show good cause why the remainder of the service or repairs cannot be made within the specified time frame. The license holder shall request an extension for a specific time. If the Department fails to respond in writing to the request within five (5) business days of the date of receipt of the notice of request for extension, the extension has been granted. (g) Once the Department receives the service or work orders confirming that all assigned items have been addressed and the Department has, to the extent deemed necessary or appropriate, inspected the work, a complaint will be closed. (h) A complaint may be reopened for good cause upon the approval of the Director or his or her designee(s). SUBCHAPTER F. MANUFACTURES HOMEOWNERS' RECOVERY TRUST FUND §80.80. Administration of Claims under the Manufactured Homeowners' Recovery Trust Fund (Effective: March 25, 2012) (a) The Director, before authorizing any party performing warranty work or providing other goods or services that are to be reimbursed from the Manufactured Homeowners' Recovery Trust Fund (the "Fund") to proceed, will require that an estimate be submitted on the form set forth on the Department's website properly completed and executed. (b) Re -assigned warranty work required by the Director to be performed shall, unless extended for good cause or provided otherwise in the order, be performed within thirty (30) days or such other time as the director may by order specify: (1) evidence that re -assigned warranty work was performed shall, unless extended for good cause, be supplied to the Department within ten (10) days of completion; and (2) all warranty work or other work to be reimbursed from the Fund, once completed, is subject to being re -inspected. (c) An order re -assigning warranty work and designating the party responsible for the re -assigned warranty work as a "consumer" under §1201.358(d) of the Standards Act becomes final if not appealed within thirty (30) days. (d) Failure to provide a required estimate in connection with an order to perform re- assigned warranty work, once that order has become final, may serve as grounds for an administrative action against the licensee. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 75 (e) When a consumer has a covered claim against a licensee and the licensee has not satisfied the claim, the Department shall take appropriate steps to make sure that the claim is proper, meeting all requirements of laws and rules, and that all reasonable steps to satisfy the claim have been exhausted. If the damages arose as a result of a violation of the Texas Deceptive Trade Practice — Consumer Protection Act, the specific violation must be adequately documented. Acceptable documentation would include a court order finding that such a violation had occurred or the establishing of confirmed facts that would specifically constitute such a violation, along with proof that the court order could not be satisfied. The specific violation must relate directly to the manufactured home or the sale transaction regarding the manufactured home. (f) Once a payment is made from the Fund, the Department shall file a claim under the bond of or deduct the amount paid from other security provided by the party primarily responsible for the unsatisfied claim. SUBCHAPTER G. STATEMENTS OF OWNERSHIP AND LOCATION §80.90. Issuance of Statements of Ownership and Location. (Effective: November 23, 2014) (a) Application Requirements. In order to be deemed complete, an application for a Statement of Ownership and Location must include, as applicable: (1) A completed and fully executed Application for Statement of Ownership and Location on the Department's prescribed current form; (2) The required fee; (3) If the statement of ownership and location is to reflect the recordation of a lien, other than a tax lien, for which the Department does not have the owner's consent, copies of documentation establishing the creation and existence of each such lien, and an affidavit of fact explaining the circumstances of the lien; (4) When one or more existing liens are to be released, assigned, or foreclosed, appropriate supporting documentation; (5) When an application for Statement of Ownership and Location indicates a change in ownership but no change in lien, supporting documentation that clearly establishes that the lien holder consented to that change; and (6) When a manufactured home is to be designated for use as a dwelling after the home has been designated for business use, salvage, or as real property, evidence of a satisfactory habitability inspection by the Department. (b) Right of Survivorship: If a right of survivorship election is made, then the Department will issue a new Statement of Ownership and Location to the surviving person(s) upon receipt of a copy of the death certificate of the deceased person(s), Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 76 and a properly executed application for Statement of Ownership and Location, and the applicable fee. (c) Corrections to Statements of Ownership and Location. (1) If a correction is required as a result of a Department error, it will be corrected at no charge. (2) If a correction is requested because of an error made by a party other than the Department, the correction will not be made until the Department receives the following: (A) A complete corrected application for Statement of Ownership and Location, or (B) Documentation deemed appropriate and approved by the Executive Director, pursuant to § 1201.207(c) of the Standards Act. (d) Upon issuance of a Statement of Ownership and Location, the Department will mail one certified copy to the owner and one certified copy to the lienholder. If an additional certified copy is desired for a third party it should be noted on the application with appropriate mailing information. (e) Exchanging a Document of Title for a Statement of Ownership and Location: The Department will issue a Statement of Ownership, with no change in status, to replace a title at no charge upon receipt of the original title and the physical location of the home. If a manufactured home title showed that it was personal property, that will be presumed to be its status until and unless a revised Statement of Ownership and Location is applied for and issued. Likewise, if a manufactured home has had a certificate of attachment issued and had title cancelled to real property, that shall be presumed to be its status until and unless a revised Statement of Ownership and Location is applied for and issued. (f) Updating of Statements of Ownership and Location on Manufactured Homes Transferred as Real Property. (1) When a manufactured home has become real property because the owner completed the conversion process required by the Standards Act, the home may be sold, transferred, or encumbered as real property by the customary means used for real property transactions. As long as the home remains real property at the same location, ownership of the home is confirmed in the same manner as any other real property, rather than by verifying Department records. A new Statement of Ownership and Location does not have to be applied for until and unless: (A) the home is moved from the location specified on the statement of ownership and location; Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 77 (B) the current owner of the manufactured home wishes to convert it to personal property status; (C) the use of the property is changed to business use or salvaged; or (D) the manufactured home no longer meets the requirements to be classified as real property (such as the home being on property subject to a long term lease which is not assignable to the buyer or transferee). (2) To convert a manufactured home from real property to personal property, the owner of the home must submit a completed Application for Statement of Ownership and Location to the Department with supporting documentation as follows: (3) (A) If the applicant is not the owner of record with the Department, satisfactory proof of ownership under a complete chain of title. Acceptable evidence would include, but not be limited to, authenticated copies of all intervening transfer documents, a court order confirming ownership, or title insurance policy in such owner's name issued by a title insurance company licensed to do business in Texas. (B) Satisfactory evidence that any liens on the manufactured home have been discharged or that all lienholders have consented to the change. (C) Evidence of either a satisfactory habitability inspection by the Department or an election to convert the status of the home to business use or salvage. (D) For the purposes of subparagraph (B) of this paragraph, the Department may rely on a commitment for title insurance, a title insurance policy, or a lawyer's title opinion to determine that any liens on real property have been released. To update the ownership on a manufactured home already elected and perfected as real property, and remaining in the same location as real property, the new owner of the home must submit a completed Application for Statement of Ownership and Location to the Department with supporting documentation as follows: (A) If the applicant is not the owner of record with the Department, satisfactory proof of ownership under a complete chain of title. Acceptable evidence would include, but not be limited to, authenticated copies of all intervening transfer documents, a court order confirming ownership, or title insurance policy in such owner's name issued by a title insurance company licensed to do business in Texas. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 78 (g) (B) Satisfactory evidence that any liens on the manufactured home have been discharged or that all lienholders have consented to the change. (C) For the purposes of subparagraph (B) of this paragraph, the Department may rely on a commitment for title insurance, a title insurance policy, or a lawyer's title opinion to determine that any liens on real property have been released. (4) When a home is being converted to real property, a copy stamped "filed" by the county must be submitted to the Department as evidence that the requirements of § 1201.2055 of the Standards Act have been satisfied and the real property election has been perfected. This must be done within sixty (60) days from the issuance date reflected on the Statement of Ownership and Location. When a title company or attorney's office fails to complete the conversion of a manufactured home to real property, the holder or servicer of the loan may apply for a statement of ownership and location electing real property status after -the -fact, providing that evidence of notice to all parties is sent via certified mail and that proof of such efforts is provided along with an affidavit of fact describing such efforts, pursuant to § 1201.2055(i)(3) of the Standards Act. (h) Submitting an application for Statement of Ownership and Location pursuant to the abandonment provision in §1201.217 of the Standards Act, should include an affidavit of fact, on the prescribed form, attesting to that all statutory notifications have been made to the appropriate parties, including the tax assessor -collector of the county where the home is located, and evidence that all notification was sent via certified mail. (i) A Priority Handling Service may be offered by the Department for an additional fee of $55, each time an application for statement of ownership and location (SOL) is reviewed on a priority basis, whether the application is complete or incomplete. Initial or resubmitted applications submitted with priority handling requested and including the additional fee, will be processed within five working days from the date the application is recognized as received in the Department (applications received after 3:30 p.m. become part of the following day's mail). (1) If the application is received complete, a Statement of Ownership and Location will be issued and mailed within the established time. (2) If the application is received incomplete, a Request for Additional Information will be issued and mailed within the established time. (3) Applications requiring habitability or salvage rebuilding inspections are not eligible for the Priority Handling Service. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 79 §80.91. Issuance of a Texas Seal. (Effective: March 25, 2012) (a) Issuance of a Texas Seal requires the submittal of an application for SOL, the applicable fee and the fee for each Texas Seal issued. (b) A Texas Seal can only be issued to a home meeting the definition of a HUD Code manufactured home or a mobile home. §80.92. Inventory Finance Liens. (Effective: March 25, 2012) (a) A lien and security interest on manufactured homes in the inventory of a retailer, as well as to any proceeds of the sale of those homes, is perfected by filing an inventory finance security form approved by this Department and in compliance with these sections. The required form is set forth on the Department's website. (b) A separate form must be filed for each licensed sales location and must include a summary of homes by label or serial number, that are secured with the form. §80.93. Recording Tax Liens on Manufactured Homes. (Effective: November 23, 2014) (a) Manually filed tax liens shall be filed with the Department using the form set forth on the Department's website. No other form will be accepted for the manual filing of tax liens. The form must be properly completed. (b) Electronically filed tax liens and tax lien releases shall be filed with the Department using the required format as provided in the Tax Lien File Layout set forth on the Department's website. No other format will be accepted for electronic filing of tax liens. (c) When releasing a tax lien recorded with the Department via a tax certificate or tax paid receipt, the documentation must demonstrate the tax lien field has been satisfied for the correct home. (d) For tax liens recorded after June 18, 2005, but prior to the rules that were effective on January 29, 2006, those tax liens relating to tax years prior to 2001 were disregarded and will not be treated as having been recorded. (e) A tax collector may file as a central tax collector under a single taxing entity ID number, in which case the liens recorded or released under that taxing entity ID number will extend to all liens created for tax obligations to the taxing entity for which the filer collects. In order, however, to file as a central collector, the filer must complete and provide to the Department the form set forth on the Department's website. A single filing for multiple taxing entities must reflect the aggregate amount of the tax liabilities to which the filing relates. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 80 §80.94. Report to County Tax Assessor -Collectors and County Appraisal Districts. (Effective: March 25, 2012) In order to comply with § 1201.220 of the Standards Act, which requires the Department to provide a monthly report to each tax assessor -collector and county appraisal district in Texas, the Department will provide the required information by hardcopy or electronically, when possible. Section 1201.009 of the Standards Act, allows the Department, if feasible, to perform any action under this chapter by electronic means. Chapter 80, Manufactured Housing Rules (Effective: 11/23/2014) Page 81 Barriers to Shared Growth: The Case of Land Use Regulation and Economic Rents Remarks by Jason Furman' Chairman, Council of Economic Advisers The Urban Institute November 20, 2015 This is an expanded version of these remarks as prepared for delivery. I am pleased to be at the Urban Institute today to discuss how conditions in the housing market relate to broader trends in inequality, productivity, and mobility, with a particular focus on the impact of land use regulations. Before I turn to longer-term structural trends, let me highlight that the housing recovery has been strong in recent years, aided by a wide range of countercyclical policies from the Administration and general improvement in the economy. Residential investment rose solidly at a 4.6 percent annual rate in the last two years, reflecting further increases in housing construction, which has surpassed an average pace of 1 million units per year. In addition, household formation, which had been depressed since the recession, has begun to pick up and points to additional demand for housing. A solid recovery in house prices has boosted home equity and strengthened household balance sheets, such that the share of homeowners underwater today is now less than half of what it was in 2010 and 2011. Rising housing wealth has also supported consumer spending, a bright spot in the economy. And with financial and mortgage market reforms in place to prevent a repeat of earlier market excesses, access to mortgage credit continues to expand, although at a pace that is still too gradual; including the fact that gains in mortgage credit have been slow to reach minority and lower-income households. The fact that this cyclical recovery in the housing market is well underway makes it a good time to step back and examine broader trends and features of the housing market. For one, expanding affordable and fair housing—giving families the ability to live in economically thriving communities and housing choices free from discrimination—remains an ongoing concern and focus for the Administration. As researchers right here at the Urban Institute pointed out this past June, not one county in the country has a large enough stock of affordable housing for renters with extremely low incomes (Leopold et al., 2015). In today's remarks, I will focus on how excessive or unnecessary land use or zoning regulations have consequences that go beyond the housing market to impede mobility and thus contribute to rising inequality and declining productivity growth. While land use regulations sometimes serve reasonable and legitimate purposes, they can also give extranormal returns to entrenched interests at the expense of everyone else. As such, land ' I want to thank Sam Himel, Claudia Sahm, and Eric Van Nostrand for assistance in preparing these remarks; Raven Molloy and Daniel Shoag for sharing data from their research; and Elaine Buckberg, Jane Dokko, Karen Dynan, and Jay Shambaugh for comments. use regulations are an example of a broader range of situations that may give rise to economic rents. By this I do not mean the check you write to your landlord every month, but a situation in which any factor of production—in this case, land—is paid more than is needed to put it in production. Economic rents can take many other forms, such as in excessively high profits for certain firms, and I explored rents more generally in a recent paper with Peter Orszag (Furman and Orszag 2015). One reason to study economic rents more carefully is that policy to address rents or rent -seeking behavior could make the economy more competitive by removing artificial barriers, thus improving both the distribution of income and the productive capacity of the economy. I want to be clear from the outset, some land use regulations can be beneficial to communities and the overall economy. There can be compelling environmental reasons in some localities to limit high-density or multi -use development. Similarly, health and safety concerns—such as an area's air traffic patterns, viability of its water supply, or its geologic stability—may merit height and lot size restrictions. But in other cases, zoning regulations and other local barriers to housing development allow a small number of individuals to capture the economic benefits of living in a community, thus limiting diversity and mobility. The artificial upward pressure that zoning places on house prices—primarily by functioning as a supply constraint—also may undermine the market forces that would otherwise determine how much housing to build, where to build, and what type to build, leading to a mismatch between the types of housing that households want, what they can afford, and what is available to buy or rent. The tradeoffs inherent in land use regulations are well known and have been of concern to policymakers and academics for decades, since at least 1961, when Jane Jacobs wrote The Death and Life of Great American Cities. In it, she argued that limits on density and mixed-use development, as well as an imbalance between preservation and new construction, can reduce housing affordability, socioeconomic diversity, and economic activity. In today's discussion I will point to a broader set of ramifications as well. The Rise of Inequality, Decline of Productivity, and the Link to Reduced Mobility Understanding the connections among zoning, affordability, mobility, and income inequality is important because of the substantial rise in overall inequality observed over the last several decades. In 1973, the bottom 90 percent received 68 percent of the income, a share that fell to 52 percent of income in 2013. The narrowing slice of the pie going to most American households has been compounded by the fact that the pie is growing more slowly, with labor productivity growing at an average 1.8 percent annual rate between 1973 and 2014, as opposed to the average 2.8 percent annual rate at which it grew in the quarter century before 1973. Reduced labor mobility may be a contributing factor to both increased inequality and lower productivity growth in the United States. This reduction in mobility has manifested itself in a wide variety of ways, including the fact that individuals are less likely to change jobs, to switch occupations or industries, or to move within States or across State lines. Businesses are creating and destroying jobs at a lower rate and fewer new businesses are being formed, both of which could be causes or consequences of a decline in labor mobility. 2 Some of the trends in fluidity may be good for the economy or reflect positive developments. For example, if matching in the labor market has become more successful, then people will be less likely to move between jobs, and retaining workers will increase productivity and wages. But to the degree that the reduced fluidity is caused by economic barriers, it can interfere with productivity growth by reducing the reallocation of labor to where it has the highest return and can increase inequality by reducing one of the channels through which workers get a raise, specifically moving from job to job. We do not fully understand what is causing these reductions in fluidity in the U.S. economy and absent an understanding of these causes, one cannot be completely confident about assessing the consequences of these changes. But if specific and unjustified barriers to mobility have grown over time, it follows that the decline in fluidity is a public policy problem that potentially reduces efficiency and increases inequality. One such barrier that is plausibly playing a role in reduced fluidity is zoning. Zoning and other land use regulations, by restricting the supply of housing and so increasing its cost, may make it difficult for individuals to move to areas with better -paying jobs and higher -quality schools. Barriers to geographic mobility reduce the productive use of our resources and entrench economic inequality. Zoning is not the only or even necessarily the main factor in the broad- based reductions in fluidity we have witnessed. Another barrier I have explored elsewhere is the fact that the percentage of jobs that require a State license has grown from 5 percent in the 1950s to 25 percent in 2008, a trend that—like zoning—may reflect a combination of sound reasons but adverse outcomes. The Rise of Zoning and Other Land Use Restrictions A time series of land use regulations for the country as a whole does not exist, because it is a complex task to collect, summarize, and then track over time the wide range of local regulations. But a range of observations, circumstantial evidence, and specific case studies suggest they have become more restrictive in recent decades, particularly in cities with growing demand for housing. An indirect way to gauge the impact of land use restrictions and other supply constraints for buildable land, including the local topography, is to compare the sales price of houses to the cost of materials and labor to build the structure. When construction markets are relatively competitive, the gap between house prices and construction costs should largely reflect the cost of buying land—a cost that increases with tighter land use restrictions. As Figure 1 from Gyourko and Molloy (2015) shows, the gap between real house prices and construction costs has grown over time, even if we exclude the period of rapid house price increases in the mid -2000s. Real house prices in 2010 to 2013 were 56 percent above real construction costs, a 23 percentage point increase over the average gap during the 1990s. 3 Figure 1 Real Construction Costs and House Prices Over Time Index, 1980=100 250 220 190 160 130 100 70 1980 1984 1988 1992 1996 2000 2004 2008 2012 Consistent with these data, Glaeser, Gyourko, and Saks (2005) found that while house prices have been rising since 1950, construction costs and quality improvements in housing stock drove this appreciation between roughly 1950 and 1970. The authors conclude that after around 1970, more stringent regulations played a much bigger role proportionally, implying that relaxing zoning constraints could bring house prices more in line with construction costs and reduce the economic rents accruing to landowners. Several studies with direct measures in specific cities of the change in land regulations are consistent with the indirect national measures. In the Greater Boston area, Glaeser and Ward (2009) find that three forms of regulatory barriers related to wetlands, septic systems, and subdivision requirements, as well as cluster zoning have all increased dramatically since the mid- 1970s. In addition, Been et al. (2014) find that the growth of historic preservation designations in New York City neighborhoods have brought about house price appreciation both in these neighborhoods as well as in those surrounding it. Cross-sectional evidence also provides a similar picture. Figure 2 below, reproduced from Glaeser and Gyourko (2003), plots cities on a graph based on the share of their homes in 1989 and in 1999 with prices at least 40 percent higher than construction costs. We can observe that some of the largest U.S. cities with both restrictive zoning rules and desirable public goods tended to have persistently high housing prices relative to the cost of construction. Moreover, more cities saw an increase in these price markups than saw a decrease during the 1990s (i.e., more dots are in the upper left hand part of the figure), consistent with the stylized fact that economic rents in the overall housing market have been on the rise in recent decades. 4 Figure 2 Ratio of House Prices to Construction Costs: 1989 vs. 1999 '" 1.0 0 0 0.8 0.6 8 0 a 0.4 A v 0.2 0 0.0 Seattle • San San Diego• •Anaheim • Albuquerque Raleigh. Los Angeles Sacrament • Greensbo Austin•• • Tucson •New Orleans Pitenix Nc.rfolk • Tampa • • Wichita • Las Vegas • Nashville New York • Dallas Chicago'. •Little Roc. •Jacksonville Oklahoma Ci ulsa Minneapolis Ft. Worth Columbus •• • `Baltimore Milwaukee Toled • San Antonio El Paso Houston De• •Omaha Indianapolis ladelphia K.0 0 0 0.2 0.4 0.6 0.8 1.0 Share of Units Valued >140% of Construction Costs in 1989 This timing of tighter land use regulations may not have been a coincidence. After a turbulent decade of the 1960s in the United States that saw racial tensions flare, with rioting in many urban areas around the country that damaged or destroyed both residential and commercial structures, thousands of high income, predominantly white families moved out of many cities, spurring the continued rise of racially and socioeconomically homogenous communities. These communities were also strictly zoned, a choice which may very well have been part of a conscious or unconscious attempt to maintain this homogeneity through the affordability channel. Zoning Gives Rise to Rents by Restricting Supply Zoning restrictions—be they in the form of minimum lot sizes, off-street parking requirements, height limits, prohibitions on multifamily housing, or lengthy permitting processes—are supply constraints.' Basic economic theory predicts—and many empirical studies confirm—that housing markets in which supply cannot keep up with demand will see housing prices rise. Mayer and Somerville (2000) conclude that land use regulation and levels of new housing construction are inversely correlated, with the ability of housing supply to expand to meet greater demand being much lower in the most heavily regulated metro areas. Quigley and Raphael (2005) show that new construction is not as prevalent in areas characterized by growth restrictions. Glaeser and Ward (2009) found that an increase of one acre in a Greater Boston town's average minimum lot size is associated with about 40 percent fewer new permits.' Land use restrictions themselves are endogenous and at least partly the result of active rent seeking behavior by homeowners. In his 2001 book The Homevoter Hypothesis, William Fischel asserts that homeowners propose and vote for zoning policies to mitigate housing market - specific risks faced in their investment portfolios. Homeowners whose homes have the highest 2 Quigley and Raphael (2004) highlight another, more esoteric form of regulation that they term "fiscal zoning," by which municipalities create community development plans that set aside large tracts of undeveloped land for revenue -positive commercial uses only, since without residents, these areas will at the same time not require substantial outlays on public goods provision such as education. Glaeser and Ward (2009) also show that over the past few decades, the prevalence of such zoning restrictions in Massachusetts in on the rise. 5 property values are both most invested and most likely to support stringent zoning policies (Fennell, 2002). This behavior fits the definition of rent -seeking, as it suggests people are trying to raise the value of their properties at the expense of greater building. The homeowners are not acting out of some nefarious intent—they are trying to safeguard an asset, but the net effect can be to choke off housing supply and mobility. Moreover, this rent seeking behavior is often framed as serving some meritorious purpose, complicating the community's ability to determine whether a particular proposed regulation is merited or misguided.4 With high house prices and further hedges against property value depreciation in local regulations, some individuals are priced out of the market entirely, and homes in highly zoned areas also become even more attractive to wealthy buyers. Thus, in addition to constraining supply, zoning shifts demand outward, exerting further upward pressure on prices and thus also, economic rents (Quigley and Raphael, 2004). Supply Restrictions Reduce Affordability Restricted supply leads to higher prices and less affordability. We see the association in the relationship between land use regulations and affordability in several dozen U.S. metro areas (Figure 3).5 As just discussed, this could both reflect land use restrictions leading to higher prices or higher prices leading people to seek more land use restrictions or other factors. This house price appreciation experienced especially in those cities towards the right of the figure presents affordability challenges for nearly all, but they can hit the poorest Americans the hardest.' Figure 3 Zoning and Affordability in Select Metro Areas NAR Housing Affordability Index in 2013 350 300 250 200 150 100 50 0 -1 -0.5 0 0.5 1 1.5 Wharton Residential Land Use Regulatory Index (Higher Values=More Regulation) 2 4 So-called Not -In -My -Backyard (NIMBY) activists tend to fit this description. They may approve of a particular development project in the abstract but simply do not want to risk its effects on the quality of life in their immediate communities. This situation can in some instances be thought of as a specific case of the free -rider problem. 5 To measure housing affordability, we rely on the National Association of Realtor's index measure, which essentially compares median incomes with median home prices, while for a regulatory stringency variable, we make use of Gyourko, Saiz, and Summers' (2008) Wharton Residential Land Use Regulatory Index. 6 Ten years ago, the Department of Housing and Urban Development summarized the literature then available on regulatory barriers to affordable housing. Sundig and Swoboda (2004) found that housing regulations depressed housing market supply and increased prices by as much as $40,000. Similarly, Malpezzi (1996) concludes that home values in tight regulatory environments are more than 50 percent higher than in lax ones. Luger and Temkin (2000) find similar results in New Jersey, where excessive regulation can raise new home prices by up to 35 percent. 6 As the figure makes clear, the affordability challenge is not evenly distributed across the country. There is considerable variation across the United States in zoning policies and associated markup of prices above construction costs, both geographically and in different types of construction. As a result of zoning as well as differences in labor markets, housing demand, and natural supply constraints resulting from land itself, economic rents and thus housing affordability vary substantially across the country's states and metro areas. Moreover, this dispersion appears to have grown over time. Gyourko et al. (2013) shows how the real home price distribution has widened over the last several decades, coinciding with increased variation in land use restrictions as some communities have added them and others have not. The Shift Towards Multifamily Housing and Other Trends Exacerbate the Problems Associated With Land Use Restrictions A variety of changes—some due to the Great Recession and so likely temporary and others more structural—have led to growing demand for multifamily, rental, shared occupancy, and home modifications. Multifamily housing starts have risen back up to where they were prior to the crisis, while the single-family category still has yet to recover fully (Figure 4). Much of the recovery in multifamily, however, may be the result of shifting preferences, with Americans desiring greater density, as evidenced by the growing share of people choosing to live in urban areas. Accordingly, these preferences may necessitate an even higher steady-state level for multifamily housing than there had been prior to the Great Recession. Figure 4 Single and Multifamily Housing Starts, 2000-2015 Thousands of Units, SAAR 2,100 1,800 1,500 1,200 900 600 300 0 Multifamily Starts Single -Family Starts Oct -15 2000 2002 2004 2006 2008 2010 2012 2014 The looming problem, though, is that multi -family housing units are the form of housing supply that is most often the target of regulation, thus restricting the potential for sustained long -run growth in this category (Quigley and Raphael, 2005). This undesirable possibility shows more broadly how economic rents and rent -seeking can often not only provide for an unequal 7 distribution of wealth and income but also can be welfare -reducing for all prospective market participants. The Urban Institute's report on headship and homeownership (Goodman et al., 2015) highlighted several other demographic -driven areas of the housing market that are potentially impeded by the supply constraints that result from zoning. As the Baby Boomer generation ages into retirement, many more elderly Americans will require modifications to the homes they currently live in or may opt for shared occupancy with another family, often their own. Both of these practices would benefit from changes in zoning policies in some areas of the country so as to make home modification and shared occupancy feasible for a larger number of seniors. The report also notes that the size and demographic composition of the Millennial generation imply that demand for rental construction is likely to pick up in the coming decade and a half as well. As a result, certain housing markets may benefit from a relaxation of zoning restrictions so that such construction can be more rapidly increased to meet demand. Otherwise, implied demand increases accompanied by an inelastic supply would likely result in larger sized economic rents, manifesting as rapid price appreciation, worsening affordability, and downward pressure on household formation, particularly among the millennial generation. Zoning Impacts Labor Markets, Productivity, and Inequality The topics I have covered so far are not just issues for housing markets—these issues directly affect the broader economy. Zoning can reinforce divergence across labor markets by impeding market forces that would otherwise help reduce income inequality and boost productivity. High - productivity cities—like Boston and San Francisco—have higher -income jobs relative to low - productivity cities. Normally, these higher wages would encourage workers to move to these high -productivity cities—a dynamic that brings more resources to productive areas of the country, allows workers in low -productivity areas to earn more, improves job matches and competes away any above -market wages (another type of economic rents) in the high - productivity cities. But when zoning restricts the supply of housing and renders housing more expensive—even relative to the higher wages in the high productivity cities—then workers are less able to move, particularly those who are low income to begin with and who would benefit most from moving. As a result, existing income inequality across cities remains entrenched and may even be exacerbated, while productivity does not grow as fast it normally would.' This last result—from a paper out this past year by Chang -Tai Hsieh and Enrico Moretti—frames excessively restrictive zoning policies as hindrances to productivity growth. More on this in a moment.' 'High -productivity cities would often have higher house prices relative to low -productivity cities. Productivity growth leads to higher wages and higher wages are then capitalized in house prices (Rosen, 1979; Roback, 1982). Yet, affordability measures are relative to wages in an area not levels of house prices across cities. s The reasons for the growing gap in productivity across cities are not fully understood—this is what Enrico Moretti of UC Berkeley termed the "Great Divergence" in his 2012 book, the New Geography of Jobs. The Tiebout Hypothesis may play a role (Fischel, 2001). Economist Charles Tiebout's 1956 model of "sorting" posits that people select communities based on where they maximize their subjective well-being, including through public goods and government regulations. Sorting is especially relevant in the zoning context because it offers a concise explanation of why zoning can beget demographic disparities, and thus why high -productivity, high -skill people may choose to live in areas with strict zoning laws or support strict zoning laws once they are already there; Zoning may protect 8 Over the same time period that the prevalence and intensity of zoning regulations have increased—since the 1970s—Figure 5 illustrates how migration rates across the country have been declining (Molloy, Smith, and Wozniak, 2014). Although this trend reflects many causes, housing supply restrictions and the resultant reductions in housing affordability lower the benefits of moving to higher -paying jobs and so likely play some role in these migration trends. Migration Rate 0.045 0.040 0.035 0.030 0.025 0.020 0.015 0.010 Figure 5 Migration Rates by Distance I ntra-county (right axis) Migration Rate 0.18 2013 Inter -county, - same state (left axis) Inter -state (left axis) 1948 1955 1962 1969 1976 1983 1990 1997 2004 2011 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 Additional suggestive evidence on this relationship between land use constraints and the labor market can be found in Saks (2008), which shows that an increase in labor demand in high regulation cities leads to a smaller increase in the housing stock, greater house price appreciation, and lower employment growth than in low regulation cities (Figure 6). Figure 6 Effects of One -Percent Higher Labor Demand Percent Change 1.2 1.0 0.8 0.6 0.4 0.2 0.0 • Low Regulations - • High Regulations Housing Stock House Prices Long -Run Employment Another area in which to see the impact of stricter land use regulation on inequality is in the slowing convergence of income across states. Ganong and Shoag (2015) find that States with less constrained supply of housing (including from looser land use regulations) experienced a both their wages and home prices from the depreciation that would occur if zoning constraints were relaxed and it were easier for lower income workers to move into their communities. 9 more consistent and substantial pace of income convergence over the last fifty years, closing about 2 percent of the across -state income gap on average per year (Figure 7). In contrast, States with more constrained supply of housing (including from tighter land use regulations) have experienced a substantial decline in the speed of income convergence. In fact, over the last twenty years, incomes across States with more constrained supply of housing have hardly converged at all. One story for this lack of any convergence is that only high-income workers can afford to relocate to the high -productivity cities that have tight land use regulations, which reinforces existing inequality. Figure 7 Speed of Income Convergence Across States by Housing Supply Percent of Income Gap Closed Each Year 2.8 2.4 2.0 1.6 1.2 0.8 0.4 0.0 • Less Constrained Supply • More Constrained Supply Iiiiiii1i.. 1960-69 1970-79 1980-89 1990-99 2000-10 The costs of zoning, in the context of this decline in labor mobility, are quite substantial. The Hsieh and Moretti paper I mentioned above documents that from 1964 to 2009, wage dispersion across cities has increased by a factor of two (Hsieh and Moretti, 2015). If workers and capital had moved over time to keep the relative wage distribution at its 1964 level, these researchers estimate that output would be more than 10 percent higher in 2009. Much of this "lost" output is attributed to zoning regulations that restricted the supply of housing, although this output estimate is tentative and would imply counterfactual employment increases absent housing restrictions in some cities of quite a large magnitude. Nevertheless, the logic of their calculation is helpful: output is lost when the supply of workers to high -productivity cities is restrained. Over time, this effect from the unrealized productivity gains of agglomeration can be large enough to reduce the country's overall output noticeably. Of course, foregone economic output via less efficient labor markets is only one possible effect on living standards of reduced housing supply. There can also be some welfare costs from greater population density. Zoning can also reduce intergenerational mobility. We know from the work on geographic variation in economic mobility by Chetty et al. (2014) that some areas are demonstrably high mobility and others less so. Moreover, moving from a low to a high mobility area confers lifelong socio-economic benefits on the children whose families move (Chetty at al., 2015). Yet the limited mobility brought about by zoning can contribute to putting these high -opportunity areas outside the reach of the families whose children would benefit most, although Chetty et al. do note that a number of high mobility areas do have low rents suggesting that some arbitrage opportunities still exist. 10 The constraints that zoning creates on mobility are exacerbated by the fact that zoning restrictions are not distributed randomly but instead tend to be more prevalent in high-income communities for the reasons I discussed earlier. This fact, coupled with the income gains for the rich over the past four decades, have worked toward pricing middle- and lower-income families out of the communities with the best schools. Studies by Watson (2009) and Reardon and Bischoff (2011) establish that higher income inequality leads to higher levels of residential segregation by income, and particularly allows affluent households to self -segregate within metropolitan areas. Thus, within the broader context of declining migration rates, divergence across labor markets, and worsening housing affordability, pursuing more prudent zoning policies could also reduce inequality that is entrenched across generations. Other Consequences of Land Use Restrictions I have described what I see to be the consequences of zoning regulation for housing markets, affordability, labor productivity, and inequality. But the consequences of zoning are much broader and include: • Greater environmental damage: when strict zoning policies cap a city's density, they ensure that the city's residents must on average occupy more land than they otherwise would and travel greater distances to and from work as well, both of which increase carbon production, all else equal (Glaeser, 2011). • Worsening of house price bubbles: tighter land use regulations may exacerbate house price bubbles. Gyourko, Glaeser, and Saiz (2008) demonstrate that cities with more restrictive zoning and thus a more inelastic housing supply have historically been more likely to experience house price bubbles and that these episodes of elevated prices tend to last longer. • Reduced public good provision: zoning that restricts multi -use may also prevent the expansion of public goods provision. New retail, commercial, or industrial tenants may bring not only increased tax revenue but also may necessitate public or private investment in infrastructure to facilitate the flow of goods and people from their locations. The Administration's Agenda Before concluding, I want to describe in some more detail the policies that the Administration is pursuing to support affordable and fair housing. Land use regulations are largely, and legitimately, in the jurisdiction of State and local governments. But we can provide information, incentives, and expanded access to credit that can lead to increased pressure to reform and reverse the most problematic land use restrictions. 11 First, the Department of Housing and Urban Development (HUD) instituted substantially greater transparency through its Affirmatively Furthering Fair Housing (AFFH) rule, which was finalized this past summer The Fair Housing Act of 1968 required any group receiving federal housing funds, as well as federal agencies overseeing such programs, to actively work toward increasing fair housing and equal opportunity. After many decades of progress, the new HUD rule, finalized this year, will give communities new tools to quantify the remaining inequities in local housing markets and achieve greater clarity in setting goals for the future. As a central part of this initiative, HUD will provide publicly open data and mapping tools to community members and local leaders, so that they can assess conditions in their housing markets. These data—alongside the ability to compare a locality with other nearby localities—should make it easier to identify disparities in access to opportunity, including those that may be entrenched due to land use policies and protection of economic rents. The goal is to provide easy-to-use and broad-based information on communities, on par with the data used in recent academic studies on economic mobility. Communities will use these detailed data to determine the reasons for any current imbalances and to establish specific goals and timelines to increase fair housing. Depending on the circumstances, this could mean changes in land use regulations and increasing the overall supply of housing in a community. Second, the President proposed $300 million in incentive funding through Local Housing Policy Grants in his FY 2016 Budget. These grants are designed to provide an incentive to encourage more relaxed land use regulations and increase the overall supply of housing. These grants would be provided specifically to those localities and regional coalitions that supported new zoning and land use regulations to create an expanded, more flexible, and diverse housing supply. Third, land use regulations are not the only potential barrier to an increase in the supply of housing and reduction in the quantity of economic rents in a community's housing market. The limited supply of credit, particularly for multi -family developments at the lower end of the market, can also restrain an increase in affordable housing. The Multifamily Risk -Sharing Mortgage program, a partnership between HUD and the Treasury, reduces financing costs and channels capital into previously underserved housing markets, with financing provided by the Federal Financing Bank The first transaction of this program was completed last fall with the New York City Housing Development Corporation and the program is expected to grow to at least $250 million in FY 2016. Extensions of this program also seek to include smaller properties, which are a critical component of the multifamily rental housing stock but often face difficult financing terms. These are only three examples of the wide ranging policies to support and improve housing markets undertaken by the Administration. Broadly speaking, we remain committed to helping communities identify barriers to opportunity and to providing the assistance necessary to reduce those barriers. 12 Notes to Figures Figure 1 Source: Gyourko and Molloy (2015). Figure 2 Source: Glaeser and Gyourko (2003). Figure 3 Source: National Association of Realtors, Housing Affordability Index (2013); Wharton Residential Land Use Regulatory Index (Gyourko, Saiz, and Summers, 2008); CEA calculations. Figure 4 Source: U.S. Census Bureau. Figure 5 Source: Molloy, Smith, and Wozniak (2014). Figure 6 Source: Saks (2008); CEA calculations. Figure 7 Source: Ganong and Shoag (2015); CEA calculations. 13 References Been, Vicki, et al. 2014. "Preserving History or Hindering Growth? The Heterogeneous Effects of Historic Districts on Local Housing Markets in New York City." National Bureau of Economic Research Working Paper 20446. Chetty, Raj, et al. 2014. "Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States." National Bureau of Economic Research Working Paper 19843. Chetty, Raj, et al. 2015. "The Effects of Exposure to Better Neighborhoods on Children: New Evidence from the Moving to Opportunity Experiment." National Bureau of Economic Research Working Paper 21156. Fennell, Lee Anne. 2002. "Homes Rule." The Yale Law Journal 112 (3): 617-664. Fischel, William A. 2001. The Homevoter Hypothesis: How Home Values Influence Local Government Taxation, School Finance, and Land -Use Policies. Harvard University Press. Furman, Jason, and Peter Orszag. 2015. "A Firm -Level Perspective on the Role of Rents in the Rise in Inequality." Paper presented at Columbia University's "A Just Society" Centennial Event in Honor of Joseph Stiglitz, New York, NY. Ganong, Peter, and Daniel Shoag. 2015. "Why Has Regional Income Convergence in the U.S. Declined?" Harvard Kennedy School Working Paper RWP12-028. Glaeser, Edward L. 2011. Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier. Penguin Books. Glaeser, Edward L., and Joseph Gyourko. 2003. "The Impact of Building Restrictions on Housing Affordability." Economic Policy Review 9 (2): 21-39. Glaeser, Edward L., and Bryce A. Ward. 2009. "The Causes and Consequences of Land Use Regulation: Evidence from Greater Boston." Journal of Urban Economics 65: 265-278. Glaeser, Edward L., Joseph Gyourko, and Raven Saks. 2005. "Why Have Housing Prices Gone Up?" American Economic Review 95(2): 329-333. Goodman, Laurie, Rolf Pendall, and Jun Zhu. 2015. "Headship and Homeownership: What does the Future Hold?" Urban Institute. Gyourko, Joseph, and Raven Molloy. 2015. "Regulation and Housing Supply." in Duranton, Gilles, J. Vernon Henderson, and William C. Strange eds., Handbook of REgional and Urban Economics. Volume 5B. Handbook of Regional and Urban Economics Amsterdam; San Diego and Oxford: Elsevier Science. 14 Gyourko, Joseph, et al. 2013. "Superstar Cities." American Economic Journal: Economic Policy 5 (4): 167-199. Gyourko, Joseph, Edward L. Glaeser, and Albert Saiz. 2008. "Housing Supply and Housing Bubbles." National Bureau of Economic Research Working Paper 14193. Gyourko, Joseph, Albert Saiz, and Anita Summers. 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index." Urban Studies 45 (3): 693-729. Hsieh, Chang -Tai, and Enrico Moretti. 2015. "Why Do Cities Matter? Local Growth and Aggregate Growth." National Bureau of Economic Research Working Paper 21154. Jacobs, Jane. 1961. The Death and Life of Great American Cities. Vintage Books. Katz, Lawrence F., and Kenneth T. Rosen. 1987. The Interjurisdictional Effects of Growth Controls on Housing Prices. Journal of Law and Economics 30 (1): 149-160. Leopold, Josh, Liza Getsinger, Pamela Blumenthal, Katya Abazajian, and Reed Jordan. 2015. "The Housing Affordability Gap for Extremely Low -Income Renters in 2013." Urban Institute, Washington, DC. Luger, Michael I., and Kenneth Temkin 2000. "Red Tape and Housing Costs: How Regulation Affects New Residential Development" Rutgers Center for Urban Policy Research, New Brunswick, NJ. Malpezzi, Stephen. 1996. "House Prices, Externalities and Regulation in U.S. Metropolitan Areas." Journal of Housing Research 7(2): 209-41. Mayer, Christopher J., and C. Tsuriel Somerville. 2000. "Land Use Regulation and New Construction." Regional Science and Urban Economics 30, (6): 639-662. Molloy, Raven, Christopher L. Smith, and Abigail K. Wozniak. 2014. "Declining Migration within the US: The Role of the Labor Market." National Bureau of Economic Research Working Paper 20065. Moretti, Enrico. 2012. The New Geography of Jobs. Houghton Mifflin Harcourt. Quigley, John M., and Steven Raphael. 2004. "Is Housing Unaffordable? Why Isn't It More Affordable?" The Journal of Economic Perspectives 18 (1): 191-214. Quigley, John M., and Steven Raphael. 2005. "Regulation and the High Cost of Housing in California." The American Economic Review 95 (2): 323-328. Reardon, Sean and Kendra Bischoff. 2011. "Growth in the Residential Segregation of Families by Income, 1970-2009." US2010 Project. 15 Roback, Jennifer. 1982. "Wages, Rents, and the Quality of Life." Journal of Political Economy 90 (4): 1257-78. Rosen, Sherwin. 1979. "Wage -Based Indexes of Urban Quality of Life". In: Mieszkowski, P., Straszheim, M. (Eds.), Current Issues in Urban Economics. Johns Hopkins Univ. Press, Baltimore, MD. Saks, Raven. 2008. "Job Creation and Housing Construction: Constraints on Metropolitan Area Employment Growth." Journal of Urban Economics 64: 178-195. Sunding, D., and Swoboda, A. 2004. "Does Regulation Ration Housing." Paper presented at the Annual Meeting of the American Agricultural Economics Association, Denver, CO. Watson, M. 2009. "Planning for a Future of Asset -Based Welfare? New Labour, Financialized Economic Agency and the Housing Market. Planning, Practice & Research 24 (1): 41-56. 16 How Land -Use Regulation Undermines Affordable Housing 1 Mercatus http://mercatus.org/publication/how-land-use-regulation-undermines-aff... 111 MERCATUS CENTER George Mason University HOME ICONTACT lee F 1BE3 Advanced Search ABOUT NEWSROOM MULTIMEDIA PEOPLE STUDENTS PUBLICATIONS RESEARCH AREAS PROGRAMS EVENTS DONATE How Land -Use Regulation Undermines Affordable Housing Sanford Ikeda, Emily Washington 1 Nov 04, 2015 II DOWNLOAD PUBLICATION PDF ® DOWNLOAD PUBLICATION SUMMARY PDF The vast majority of municipalities in the United States regulate land use and development to some degree. Land -use regulations come in many forms, ranging from traditional zoning and density restrictions to newer "smart growth" policies designed to limit urban sprawl. While these rules have some benefits, they can also restrict housing supply and inflate housing prices. Land -use regulations may then be an important factor in the skyrocketing housing costs in some of America's largest cities. Share Print Email A new study for the Mercatus Center at George Mason University reviews the empirical literature on the effects of land -use regulations. The study finds that these regulations reduce the supply of housing relative to what it would likely be in a free market and ultimately increase housing costs for consumers. Because lower- income households spend on average a larger percentage of their income on housing than higher -income households, the costs of these regulations disproportionately burden low-income households. Restraining the growth of land -use restrictions and rolling them back would benefit not only low- and middle-income households, but also overall economic growth. To read the study in its entirety and Ieam more about its authors, Sanford Ikeda and Emily Washington, see "How Land -Use Regulation Undermines Affordable Housing." THE EXCLUSIONARY ORIGINS OF LAND -USE REGULATIONS Land -use regulations first appeared in the United States in the early 20th century, when progressive reformers, concerned about the potential health effects of tall buildings, passed height limitations and setback requirements in New York City. Reformers also sought to encourage suburban development because they believed that suburban communities and single-family homes would promote moral and civic virtue. aties and towns across the United States followed suit, adopting zoning rules that separated low- and high-density residential neighborhoods and commercial districts. Some communities also used land -use regulations to exclude racial minorities and low-income households. While the avil Rights Act of 1966 forbade explicitly race -based exclusionary zoning, some zoning regulations still implicitly affect certain demographics by pricing out low- and middle-income households. KEY FINDINGS Land -Use Regulations Limit Supply and Increase Costs Specific land -use regulations differ in their intents and requirements Some of the most common are the following: • Minimum lot sizes Minimum -lot -size regulations specify the smallest possible area that something may be built on, often to restrict housing density. Many studies conclude that the supply -limiting and cost -increasing effects of these regulations are stronger than the effects of other land -use restrictions. • Minirrum-parking requirements Minimum -parking -space requirements set a floor on the ratio of parking spaces to residences for single-family homes or apartments. Like minimum -lot -size regulations, they have the effect of limiting density and pushing up housing prices. • Indusionaryzoning. Requirements that developers set aside a certain percentage of new development to lease or sell at below-market rates increases developers' costs at the margin, discouraging construction and ultimately lowering the supply of housing. • Urban growth boundaries Urban growth boundaries are "smart growth" regulations designed to protect farms and forests from urban development, but have been associated with increased housing costs within the boundaries. Municipalities are not required to conduct cost -benefit analyses before adopting land -use regulations, but urban economists have compiled data on land -use policies from around the country to study their costs and benefits. Most of their findings show that, when binding, land -use regulations lead to higher housing costs. • One study calculates that land -use regulations imposed "regulatory taxes" of at Ieast 10 percent in some of the most expensive cities in the United States, such as New York, Los Angeles, and Washington, DC. • Another study, examining differences in land prices across municipal borders where land -use regulations differ, finds that regulations often lead to inefficient land use and development. • In contrast, cities with lower levels of traditional land -use regulation remain relatively affordable as their populations grow because housing supply is able to increase along with demand. Land -Use Regulations Fall Hardest on Lower -Income Households Because land -use regulations tend to limit housing supply and drive up the price of housing, current homeowners tend to benefit while renters and new homeowners are harmed. This burden falls disproportionately on poor households, which spend a larger percentage of their income on housing than wealthier households, and which are more likely to rent than to own. These effects are most pronounced in some of the most productive cities in the United States, where the high cost of housing has kept population growth relatively low despite the greater economic opportunities afforded by these cities. This foreclosing of economic opportunity could inhibit overall economic growth in the long term. • For example, a recent study finds that, over the past 30 years, land -use regulations in high -productivity US cities have caused above-average growth in housing prices, which in turn have slowed the mid -20th century trend toward greater wage equality. • Another study found that reducing the level of land -use regulation in New York, San Francisco, and San Jose alone would increase GDP by 9.5 percent. POLICY RECOMMENDATIONS Current homeowners benefit from land -use regulations' positive effect on land values—therefore many would be unlikely to support reducing such regulations at the local level. Several scholars have proposed reforms that would reduce current homeowners losses from reductions in land -use regulation and limit the control of local politicians • Horne equity insurance. Horne equity insurance would provide homeowners with confidence in the value of their home, even if reductions in local land -use regulations Iead to a decline in the home's value. However, such insurance would still not discourage homeowners from pursuing new land -use regulations. SANFORD IKEDA Sanford Ikeda is a professor of economics at the State University of New York, Purchase. He has contributed his expertise on entrepreneurship to the Mercatus Center's Katrina Project. Full Bio EMILY WASHINGTON Emily Washington isa policy research anger for the Mercatus Center at George Mason University. She manages the Spending and Budget Initiative and State and Local Policy Project portfolios. Full Bio Sign Up for Email Updates Name* First Email Job Title Last Organization Zip Code Select your emails * This Week at Mercatus Mercatus Weekly Chart Mercatus Events Conversations with Tyler Spending and Budget Issues Health Care Issues Financial Markets Issues Regulatory Studies Technology Policy State and Local Policy Study of American Capitalism F. A. Hayek PPE Program Graduate Student Programs 1 of 2 2/9/2016 11:14 AM How Land -Use Regulation Undermines Affordable Housing 1 Mercatus http://mercatus.org/publication/how-land-use-regulation-undermines-aff... • Zoning budgets A zoning budget would set a ceiling on how much local politicians can restrict growth via land -use regulations, forcing them to make tradeoffs among regulations. But even with these limits on regulation, supply would still be constrained through the political process. • T Increment Local Transfers TILTs would transfer a portion of the increase in the tax base from any new land development to nearby property owners, allowing them to personally benefit from new development and offset some of the lost value of their property. • State implementation of zoning reforms Because state officials are likely less sensitive to local opposition to new development and they are motivated to pursue policies that will increase statewide economic growth, many of the above policies might have a better chance of succeeding if implemented at the state level. RELATED Power to the Neighborhoods: The Devolution of Authority in Post -Katrina New Orleans Peter Gordon, Sanford Ikeda 1 Aug 28, 2007 Gales of Creative Destruction: Innovative Governance and Entrepreneurial Development in Post -Katrina New Odeans Peter Gordon, Sanford Ikeda 1 Feb 2007 Subscribe to Email Updates Feedback Contact Us Horne About M ERCATU S CENTER AT GEORGE MASON UNIVERSITY - 3434 Washington 084, 4th Floor, Arlington, VA 22201 Toll-free Phone_ (800) 815-5711 - Loral Phone_ (703) 993-4930 - Fax_ (703) 993-4935 2 of 2 2/9/2016 11:14 AM Affordable InfiII Housing 1 2 3 4 5 6 7 Key Issues March 15, 2017 8 Manufactured Housing for Affordable Housing Issues 9 Taubman Submission 10 11 12 13 14 15 16 March 15, 2017 Version 2.0 V 2.0 Page 1 Affordable InfiII Housing 17 Housing Regulation and Construction Key Issues March 15, 2017 18 The purpose of the building code is to protect public health, implement best practices of safety, 19 promote energy efficiency, encourage good aesthetics, and ensure uniform building construction, 20 among other public goods. The building code defines what and how structures get built as well as 21 material modifications during the life of the buildings. 22 Corpus Christi has adopted the 2015 International Codes. For site -built, single family and duplex homes, 23 the applicable regulation is the 2015 International Residential Code (abbreviated as "IRC"). The IRC 24 defines the standards for all aspects of construction. 25 Manufactured homes are regulated by the Federal Government under the auspices of the Department 26 of Housing and Urban Development (HUD). The section of Federal Code related to this is Code of 27 Federal Regulations, 24 CFR 3280. This code can be found here (included as Appendix A to this report): 28 http://www.ecfr.gov/cgi-bin/text- 29 idx?SID=a2c5655a37054c584f7dd6a0ed240fb8&node=pt24.5.3280&rgn=div5 30 or as a pdf: 31 https://www.gpo.gov/fdsys/pkg/CFR-2010-title24-vo15/pdf/CFR-2010-title24-vo15-part3280.pdf 32 The HUD code is designed to provide a national set of standards to produce factory built housing that is 33 transportable, safe, and efficient. The primary version of the rules went into effect in 1976, but have 34 seen substantial revisions since that time. Most significant for Corpus Christi, the windstorm protections 35 were re-evaluated and re -regulated in 1994 and 2000, following the review of major hurricane impacts 36 starting with Hurricane Andrew that hit South Florida in 1992. The HUD code is periodically revised by 37 the Manufactured Housing Consensus Committee which is a statutory Federal Advisory Committee body 38 charged with developing proposed model installation standards for the manufactured housing industry 39 and incorporating best practices. 40 The HUD and IRC building codes are very similar in their specifications. As such, both building codes 41 define similar requirements for: structural, lighting, ventilation, room dimensions, egress requirements, 42 door and window standards, moisture control, thermal efficiency, plumbing, HVAC systems, and 43 electrical, among other elements. 44 Because the manufactured home is engineered to standards as a unit, no alterations or attachments to 45 the structure are permitted according to code without substantial input of a licensed engineer. As such, 46 a manufactured home owner should not have any expectations of expansion or modification. 47 Correspondingly, Corpus Christi may not issue any permits for modification to any system for which it 48 did not have primary regulatory inspection authority during initial construction or installation of the 49 manufactured home. 50 Auxiliary structures, porches, or decks are typically not attached to the manufactured home structure 51 but are regulated by the City in conformity with the IRC codes or other local requirements. The City may 52 further regulate aesthetics, skirting requirements, and foundation. 53 Fire safety is a major emphasis of the Federal HUD code. Design, materials specification, mechanical 54 systems capable of starting fire, and alarms are specified in detail. The National Fire Protection V2.0 Paget Affordable InfiII Housing Key Issues March 15, 2017 55 Association has produced a detailed report on the incidence of fire in manufactured housing. (Summary 56 and full report included as in Appendix B to this report). They summary concludes the following, 57 "Manufactured homes (all ages combined) had roughly the same fire death rate per 100,000 occupied 58 housing units as other one- or two-family homes in 2007-2011. If all pre -standard manufactured homes 59 [i.e. pre -1976] were removed from the inventory of occupied units, it is estimated that the 60 manufactured home fire death rate would be considerably lower than the rate in other one- or two - 61 family homes. 62 63 In Texas, the State oversees the sale, installation, and manufacture of the homes. The regulation is 64 defined as the Administrative Rules of the Texas Department of Housing and Community Affairs, 10 65 Texas Administrative Code, Chapter 80. (Included as Appendix C, source: 66 https://www.tdhca.state.tx.us/mh/docs/Rules-141123-160514.pdf). 67 Manufactured homes must be installed by a licensed installer and in accordance with manufacturer 68 requirements. In most cases this is a general contractor with additional experience or certifications 69 particular to manufactured housing. The installer is responsible for emplacement and connection of 70 utilities, the foundation, and permanent installation of the home. Variables include proper site 71 preparation for drainage, moisture control, grading, and termite treatment, among other site specific 72 activities. The skirt wall and stairs/landing are constructed on site following emplacement of the home. 73 The final procedure is testing and acceptance of the home and its systems. 74 Licensed electricians and plumbers and other trade specialists are responsible for the appropriate 75 construction outside of the structure itself. This includes taps with the relevant public utilities. 76 The City of Corpus Christi inspects the plans prior to commencement of installation and issues the 77 permit following acceptance and payment of relevant fees. There are City inspections of site placement 78 and setbacks, underground plumbing, electrical utilities, the foundation, the stair/landing construction, 79 tie -down anchoring, and final inspection upon completion. In most instances, a State Inspector also 80 inspects the anchoring of the structure to the foundation. 81 There are many producers of Manufactured Housing among them are American Homestar Corporation, 82 Clayton Homes, and Palm Harbor Homes as examples. Each manufacturer produces many models of 83 homes which are standardized in their construction and structure but may have finishing options that 84 are primarily cosmetic. Each model is evaluated by one of six Federally authorized engineering and 85 inspection entities who certify that the structure meets the applicable requirements. 86 The homes are inspected during the construction process by one of fifteen Federally authorized 87 inspection entities who certify that the structure meets the applicable requirements. Each of the 88 factories also has dedicated supervisory and line personnel responsible for quality assurance, 89 documentation of the construction, and compliance with the various regulations. 90 The homes are constructed in assembly -line fashion within enclosed factory space. Most important, the 91 partially built structure of a manufactured home is shielded from the weather. Conversely, site built 92 homes may have rain or moisture damage when partially built or by exposure of the raw materials 93 which has the potential to cause warping, structural weakening, mold, or insect damage. 94 Within the manufactured home factory, It is possible to build around-the-clock and to work 95 simultaneously on many of the home systems. The factory environment allows the use of bulky, V2.0 Page3 Affordable InfiII Housing Key Issues March 15, 2017 96 specialized equipment which would be impractical to use on site built homes. Labor efficiency is 97 maximized through scheduling efficiency, low mobilization time, familiarity with designs, the use of 98 jigs/templates, and task specialization. 99 Manufactured homes are completed in a few days. Site built homes take months. 100 Here are the primary factors that cause the price of manufactured homes to be low: 101 • Absence of delays for inspections, weather, season related 102 • Bulk purchasing of raw material inputs 103 • Reduced waste of raw materials 104 • Labor efficiency of assembly line process 105 • Efficiency of controlled environment installation 106 • Regular build shapes without customization between units 107 • Labor specialization of repetitive tasks. 108 • Availability of centralized, specialized equipment 109 • Low mobilization costs 110 It is my supposition that the materials cost between site -built homes and manufactured homes is 111 approximately the same. The bulk of the savings is labor, mobilization costs, financing costs and 112 administration. Because the intensity and quality of the raw materials is similar, irrespective of 113 construction methods, the quality of the finished home should be comparable. 114 The typical installation interval for manufactured housing is 8 to 12 weeks. Site built homes general take 115 16 to 36 weeks to construct. 116 Because of the simplicity of the emplacement of a manufactured home, a typical home buyer does not 117 need the involvement of a home developer. The buyer can visit model homes from numerous providers 118 and negotiate for the best deal for the preferred model. The total price is known upfront with little risk 119 of change orders or construction surprises that often occur in site built homes. As such, the purchase of 120 a manufactured home is within the capabilities of an individual on a fixed income and without prior 121 homebuilding experience. 122 Because of the complexity of building a site -built home on a custom basis, it is most likely that any 123 potential infill homes which were site -built would be built by a developer on a spec -home basis. 124 Because the developer is taking the risk of sale in this situation, they typically have expectation of 125 substantial profit or financing cost associated with a long build/hold time which they add to the home 126 price. As such, the home price may make it impractical to build in neighborhoods with low value of 127 existing housing stock. 128 129 130 V 2.0 Page 4 Affordable InfiII Housing Key Issues 131 Representative pictures of manufactured housing being built in a factory setting: 132 133 134 135 V 2.0 March 15, 2017 Page 5 Affordable InfiII Housing 136 Windstorm and Hurricane Considerations Key Issues March 15, 2017 137 The HUD building code defines hurricane windstorm risk into three categories, with Wind Zone -I being 138 appropriate for most of the Country. All of the Texas coast -adjacent counties, including Nueces County, 139 are Wind Zone -II. Wind Zone -III is required in extreme wind areas. 140 There are windstorm standards for manufactured homes and site -built homes within Corpus Christi. 141 The different regulatory authorities define the standard using different measurements. However there 142 is an accepted convention to convert values between standards for comparison purposes: 143 • The HUD Zone II is defined as a standard of 100 mph Speed Fastest Mile. 144 • The Speed Fastest Mile = (Speed 3 -second gust in mph — 10.5) / 1.05 145 • The equivalent 3 -second gust for Wind Zone -II is 115.5 mph. 146 In comparison with site built homes, TDI categorizes Corpus Christi (other than Padre Island) as Inland I. 147 The requirement for Corpus Christi as inland I is 120 mph for a 3 second gust (source: 148 http://www.tdi.texas.gov/wind/maps/nueces.html). Thus the difference between manufactured homes 149 and site built homes is relatively small at 4.5 mph. 150 With respect to windstorm, the focus on current site -built standards and current manufactured housing 151 standards is not the most appropriate comparison. Most important is that the windstorm standards of 152 manufactured housing are likely superior to much of the existing neighborhood housing stock that was 153 built before modern windstorm considerations or that has degraded due to rot, termite damage, or 154 aging of metal fasteners. 155 Windstorm protection is achieved primarily by specification of fasteners or strapping which stiffens the 156 home and provides solid connection between roof, walls, and flooring. The entire system as a whole is 157 then anchored to the foundation to prevent movement in high winds including those of hurricane 158 strength. 159 For Corpus Christi, any home that is Wind Zone -II rated is allowed to be placed in areas that allow 160 manufactured housing, including near the coast within Nueces County. This is defined by Federal 161 regulation and thus cannot be preempted by State or local regulation. However, there is a portion of 162 the regulation included in Sec. 3280.305 that states. "Consideration of local requirements. For areas 163 where local building code requirements exceed the design wind speed requirements of these 164 standards, the Department will consider the adoption through rulemaking of the more stringent 165 requirements of the State or local building authority." As such, in the future, perhaps there may be 166 the opportunity to designate the area within the City of Corpus Christi as requiring Wind Zone -III 167 specification. 168 While the City cannot mandate Wind Zone -III construction, purchasers may purchase the Wind Zone -III 169 homes. The City should consider incentives to encourage consumer choice of the Wind Zone -III models. 170 Only a subset of manufactured housing is available as Wind Zone -III. However, in those instances, in 171 many cases the engineering drawings specify the differences which are usually minor in terms of 172 fasteners or shear panels. As a matter of cost, the difference between Wind Zone -II and Wind Zone -III 173 are relatively small. V2.0 Page6 Affordable InfiII Housing Key Issues March 15, 2017 174 The old joke is that manufactured housing is the only type of housing that is hurricane tested as it is 175 driven from the factory to the site of installation. 176 177 Basic Wind Zone Map for Manufactured Housing MT ND MN Sb chisim6.%Imo it �} �r itir N3 -D8 YA �� WY is - CO ES OK TX NOTL: See Section 3280.305(00(2) far areas 1n,c1uded in each Wind Zone. 178 Flooding is a major component of hurricane or weather-related property destruction. Manufactured 179 housing is typically installed at 18" to 36" above grade. As such, manufactured housing has a substantial 180 ability to withstand flooding as compared with conventional construction on slab which is generally at or 181 near grade. 182 There is a substantial safety and financial advantage of manufactured housing with respect to 183 stormwater. This should be a major consideration in neighborhoods with poor drainage or insufficient 184 lot elevation. 185 In my experience (Taubman), in Flour Bluff, the drainage along the street is insufficient to prevent minor 186 flooding during periods of flash -flooding type rains. We have observed the flooding of site built homes 187 while the elevation of our modular duplex, built three years ago, is far above the stormwater. 188 V2.0 Page7 Affordable InfiII Housing Key Issues March 15, 2017 189 Financing and Insurance of Manufactured Housing 190 For the situation under consideration in Corpus Christi, the manufactured home would be affixed to the 191 land and owned by the same person. As such, the manufactured home would be considered "real 192 property". 193 Borrowers with a credit score of 620 or better have the ability to borrow using loans that are backed by 194 the Federal Housing Administration (FHA) or the Veterans' Administration (VA). By protecting mortgage 195 lenders against the risk of default, Federal participation has encouraged lenders to finance 196 manufactured homes at a longer term and lower interest rate than with conventional loans. The 197 maximum amount of a loan under the FHA program for a home and lot is $92,904 on a 20 year term. 198 For an owner occupied dwelling meeting FHA or VA eligibility: 199 • Rates range from 4.25% to 5.00% fixed 200 • Downpayment for FHA loans can be as low as 3.5% 201 • Downpayment for VA loans can be as low as 0% 202 • The manufactured home must meet quality standards for structure, lot, and foundation, among 203 other certifications 204 • Possibility of staged lending to allow separate land and structure fundings 205 • New manufactured homes and resale transitions 206 For high-quality borrowers within a qualified PUD, a Freddie Mac backed mortgage is available. The loan 207 is a 30 year term and current rate is 4.875%. 208 For weaker -credit borrowers, there are numerous lenders who provide financing without government 209 guarantee. Most of the lenders are specialized in lending to borrowers with poor credit using 210 manufactured housing to secure the loan. The lenders hold the paper and are the loan servicers. 211 For an owner occupied dwelling emplaced on owned land, these are the primary considerations: 212 • Rates range from 6.25% to 8.99% fixed depending on downpayment and borrower credit 213 • Cash downpayments range from 5% to 35% 214 • Land can be used in lieu of cash downpayment, best at 10% of total value 215 • Term is from 15 to 23 years 216 • Bottom range of credit score is 500 217 • New manufactured homes and resale transitions 218 Insurance is available from numerous providers, all of which are regulated by the Texas Department of 219 Insurance. The typical policies cover general liability, straight wind coverage, hurricane, earth 220 movement, flood, and all other events. However, the deductible varies depending on the type of 221 covered event, and the deductible ranges from $750 to $2500, for the most part. Windstorm is 222 available from TDI directly as an insurer of last resort, but separation of windstorm from other events is 223 substantially more expensive. 224 225 226 V2.0 Page8 Affordable InfiII Housing Key Issues March 15, 2017 227 The whole point of using manufactured housing is to provide affordable housing to working families. 228 Pro -Forma Cost of ownership: 229 • Assume $50,000 dwelling cost and $75,000 total cost on owned land. 230 • Assume $5,000 downpayment, 7.5% loan, 23 year term. 231 232 Approximate monthly amount equivalent: 233 • Mortgage $533 234 • Insurance $120 235 • Property Tax $90 236 • Total $743 monthly or $8,916 per year 237 NEW MANUFACTURED HOME — 3 BEDROOM / 2 BATH -- $750 PER MONTH 238 Certainly specifics of the borrower, market rates, and location specifics matter enormously in the 239 determination or cost of ownership. The pro -forma used mid-range assumptions. By way of 240 comparison, a search of craigslist apartments indicates that the lowest cost 3 -bedroom / 2 -bath 241 apartment rental is $875/mo with most apartments over $1000/mo. 242 Manufactured housing is a safe, clean, appropriate housing solution for working families. 243 By allowing manufactured housing in appropriate locations, the City will significantly improve: 244 affordable housing availability, infill development, tax base expansion, utility rate base expansion, 245 neighborhood revitalization, and increased neighborhood commerce, among other social 246 improvements. 247 Home ownership has been an important builder of family wealth. Irrespective of the ultimate value of 248 the home, the cost of ownership is lower than or comparable to renting and can be relatively fixed for 249 the duration of the mortgage which is approximately 20 years. 250 Home ownership has been an important pillar of the American dream. It is the traditional method of 251 saving, as home equity is often used for retirement or significant financial needs. 252 Most significant, a stable, clean home is critical to a happy and healthy family environment. 253 V2.0 Page9 Affordable InfiII Housing Key Issues March 15, 2017 254 Lifespan of manufactured housing and maintenance issues. 255 Manufactured housing did not have nationwide, systematic regulation prior to 1976. As such, the 256 literature would seem to indicate that the quality of manufactured housing was substandard prior to 257 that date. I believe (Taubman) that much of the blighted manufactured housing can be attributed to 258 manufacture prior to current regulation and manufacturing standards. 259 Conversely, the current regulatory framework produces housing that is well made, subject to installation 260 and construction oversight, and uses conventional materials. As such, I believe that manufactured 261 housing can attain the same lifespan as a site -built home. The housing that I (Taubman) intend to build 262 for the demonstration project has a 50 year warranty on the siding, a 20 warranty on the shingles, a 263 seven year manufactures warranty on everything, and the availability of a ten year wrap-around 264 warranty for a nominal fee. 265 All housing, irrespective of construction method, needs regular home -owner inspection and 266 maintenance. Manufactured housing which is built using conventional materials is easy and cost 267 effective to maintain. For most manufactured housing which would meet the standards of the program 268 under consideration, the framing is wood, the siding is conventional engineered paneling, the shingles 269 are conventional, the supply plumbing is PEX, the sewer pipe is PVC/ABS, the wiring is standard, and the 270 water heater and HVAC are commercially available. 271 Because the manufactured home systems use off -the shelf components, replacement items are 272 available, off-the-shelf, at home improvement or construction material retail outlets. Licensed 273 professionals or experienced maintenance professionals should be able to service and maintain the 274 home systems without special training or licensure. 275 The advantages of pier and beam construction include the ability to: 276 • Inspect major systems such as supply plumbing, waste plumbing, floor joists, and sill -plates, 277 among other major systems. 278 • Prevent, find, and treat wood destroying pests and/or rot damage due to moisture. 279 • Service systems with defined lifespans less than the structure such as supply plumbing. 280 • Re -level structure if ground movement, subsidence, or foundation failure. 281 The use of manufactured housing for infill is not subsidized housing for the occupants of those homes. 282 Occupants must be able to demonstrate financial viability to qualify for a mortgage or to be accepted as 283 renters. As owners or renters, these people must be employed or otherwise have a stable source of 284 income. In my experience (Taubman), people in this market segment have jobs such as teachers, 285 mechanics, nurses, refinery workers, small business owners, retirees, and others in similar situations. 286 The social 'bet' that we are taking is that people in this category are capable of maintaining newly 287 constructed homes in good condition. 288 For certain, there is an abundance of blighted housing in the less -affluent neighborhoods. This is true of 289 site -built housing as well as manufactured housing. Certainly there is the stereotype is that 290 manufactured housing has a shorter lifespan, which was probably historically true. However I believe 291 (Taubman) that a substantial fraction of the housing blight can be attributed to the wealth of the home 292 owner. I believe (Taubman) that in the aggregate, poorer owners have fewer resources to maintain a V2.0 Page10 Affordable InfiII Housing Key Issues March 15, 2017 293 home and probably have a lower standard for what qualifies as appropriate maintenance. I believe that 294 this phenomenon applies to all durable goods within that socio-economic status. 295 Simply stated, most people who live in manufactured housing have few financial means. The housing 296 blight results from their lack of resources, not necessarily the quality of their home. 297 Many would use the following pictures to observe that the manufactured home is falling apart. 298 However few would ask the following: 299 300 Why do Jaguar cars fall apart so fast? Why do NEitsribishi cars fall apart s Why do Chevy trucks fall apart so fast? V 2.0 o fast? Why do Suburbans fall apart so fast? Page 11 Affordable InfiII Housing Key Issues 301 City regulation of location of manufactured housing 302 303 304 March 15, 2017 YE $!!! .4440' YES!!! Consi ES!!! 305 Zoning is an important aspect of City authority to promote the highest and best use of land, compatible 306 land use among neighbors, orderly development of land, allocation of scarce City resources, and 307 maximization of social value. I support these goals, but believe that manufactured housing is a 308 component that can enhance these elements in limited and well defined areas. 309 The imposition of manufactured housing in established neighborhoods with high valuations and few 310 empty lots would be wrong, wrong, wrong. Nothing contained herein should suggest, nor does any 311 program being considered intend, to build manufactured housing in areas that are inappropriate. 312 Manufactured housing solves a societal problem within a narrow range of circumstances and is not 313 suitable for general emplacement. 314 If the use of manufactured housing for infill becomes a program within Corpus Christi, it is imperative 315 that the City defines well -considered criteria for the emplacement of the homes. Of paramount 316 importance is the input of many stakeholders including residents, City Staff and leadership, land owners, 317 and land use experts, among other participants. The process must be subject to substantial outreach 318 and public hearings in order to determine justice for the many participants which would be impacted by 319 doing something or doing nothing. 320 One aspect is certain: the City has the absolute right to designate 321 where manufactured housing may or may not be built. 322 However, substantial research demonstrates that over -reaching land use restraints have many 323 unintended consequences. An example from a report from the Urban Institute (included in Appendix 324 D): 325 326 "... excessive or unnecessary land use or zoning regulations have 327 consequences that go beyond the housing market to impede mobility and 328 thus contribute to rising inequality and declining productivity growth. While 329 land use regulations sometimes serve reasonable and legitimate purposes, 330 they can also give extranormal returns to entrenched interests at the expense V2.0 Page12 331 332 333 Affordable InfiII Housing Key Issues March 15, 2017 of everyone else." Remarks by Jason Furman, Chairman, Council of Economic Advisors to the President, November 20, 2015 334 Another example is How Land -Use Regulation Undermines Affordable Housing, November 4, 2015 335 (included in Appendix E): 336 337 "The study finds that these regulations reduce the supply of housing relative 338 to what it would likely be in a free market and ultimately increase housing 339 costs for consumers. Because lower income households spend on average a 340 larger percentage of their income on housing than higher -income households, 341 the costs of these regulations disproportionately burden low-income 342 households." 343 V2.0 Page13 Affordable InfiII Housing Key Issues March 15, 2017 344 City to produce: detailed comparison of manufactured home and site built home 345 V2.0 Page14 Affordable InfiII Housing 346 Appendix A — HUD Code 347 Appendix B — Fire Key Issues March 15, 2017 348 Appendix C — Texas Department of Housing and Community Affairs, 10 Texas Administrative Code, 349 Chapter80 350 Appendix D — Urban Institute 351 Appendix E — How Land -Use Regulation Undermines Affordable Housing V2.0 Page15