HomeMy WebLinkAboutAgenda Packet City Council - 08/27/2019City Council
City of Corpus Christi
Meeting Agenda - Final-revised
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
Council Chambers11:30 AMTuesday, August 27, 2019
Addendums may be added on Friday.
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
Communication department at 361-826-3211 to coordinate.
A.Mayor Joe McComb to call the meeting to order.
B.Invocation to be given by Pastor Kevin Jennings, Mt. Olive Lutheran Church.
C.Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be
led by Kamil Taras, Capital Improvement Program Manager, Budget Department.
D.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.
E.Proclamations / Commendations
1.19-1206 Commendations for 2019 National Senior Games Participants.
F.CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS:
a.OTHER
G.MINUTES:
2.19-1181 Regular Meeting of August 20, 2019 and Workshop Session of August 15,
2019.
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August 27, 2019City Council Meeting Agenda - Final-revised
H.BOARD & COMMITTEE APPOINTMENTS:
3.19-1179 Arts & Cultural Commission (3 vacancies)
Community Youth Development (78415) Program Steering Committee (4
Vacancies)
Senior Companion Program Advisory Committee (2 vacancies)
Sister City Committee (3 vacancies)
I.EXPLANATION OF COUNCIL ACTION:
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 Communication department at 361-826-3211 to
coordinate. All items on this agenda are considered public hearings.
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 - 20)
4.19-1063 Zoning Case No: 0619-02 Texas State Roofing Company, LLC (District 2).
Ordinance rezoning property at or near 916 South Alameda from the
“CG-2” General Commercial District to the CG-2/SP” General Commercial
District with a Special Permit. Planning Commission and Staff recommend
Approval.
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August 27, 2019City Council Meeting Agenda - Final-revised
Sponsors:Development Services
5.19-1064 Zoning Case No. 0519-03 Sergio and Magali Martinez (District 1)
Ordinance rezoning property at or near 2934 Highland Avenue from the
“CN-1” Neighborhood Commercial District to the “RS-6” Single-Family 6
District. Planning Commission and Staff recommend Approval.
Sponsors:Development Services
6.19-1086 Ordinance authorizing acceptance of $171,000 grant from Texas
Department of Transportation for the 2020 Comprehensive Selective
Traffic Enforcement Project to increase traffic enforcement with a City
match of $49,553.37 from the FY 2020 General Fund.
Sponsors:Police Department
7.19-1043 Ordinance authorizing the purchase of 180 Police vehicle video recording
systems and a five-year service agreement for installation and
maintenance from Turn-Key Mobile, Inc. of Jefferson City, Missouri, via
Texas Department of Information Resources Cooperative for a total
amount not to exceed $1,541,113.15; appropriating $1,541,113.15 from
the unreserved fund balance of the Liability and Employee Benefits -
General Liability Fund; transferring to the IT Fund; and amending the FY
2018-2019 operating budget adopted by Ordinance No. 031548; funded
through the Liability and Employee Benefits - General Liability Fund.
Sponsors:Police Department, Information Technology Services and Contracts and
Procurement
8.19-1117 Ordinance authorizing the issuance of “City of Corpus Christi, Texas Utility
System Junior Lien Revenue Improvement and Refunding Bonds, Series
2019” for Water and Wastewater Utility improvements in an amount not to
exceed $113,000,000 and authorizing other matters incident and related
thereto.
Sponsors:Financial Services Department
9.19-1119 Ordinance authorizing the issuance of “City of Corpus Christi, Texas
General Improvement Refunding Bonds, Series 2019” related to Parks and
Recreation improvements in an amount not to exceed $9,000,000 and
authorizing other matters incident and related thereto.
Sponsors:Financial Services Department
10.19-1120 Ordinance authorizing the issuance of “City of Corpus Christi, Texas
General Improvement Refunding Bonds, Taxable Series 2019” related to
Airport improvements in an amount not to exceed $4,000,000 and
authorizing other matters incident and related thereto.
Sponsors:Financial Services Department
11.19-1071 Motion authorizing a three-year service agreement with Richard E. Cruz,
dba Rick’s Detail and Body Shop, for vehicle paint and body repairs of
fleet units assigned to the Fire Department in an amount not to exceed
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August 27, 2019City Council Meeting Agenda - Final-revised
$254,700.00, effective upon issuance of a notice to proceed, with funding
available in the General Fund.
Sponsors:Fire Department and Contracts and Procurement
12.19-1134 Motion awarding a contract to Berry Contracting LP dba Bay, Ltd. for
reconstruction of Holly Road from Rodd Field Road to Ennis Joslin Road
using asphalt pavement and providing required utility improvements in the
amount of $8,345,032.20, effective upon issuance of notice to proceed,
with funding approved and available in Type B and Utility Capital
Improvement Budgets. (Council District 4)
Sponsors:Street Department and Engineering Services
13.19-1052 Resolution authorizing the City Manager, or designee, to execute an
Advance Funding Agreement with the Texas Department of Transportation
(TXDOT) with the City’s local participation in the amount of $48,700.80 for
water valve adjustments associated with the SH 358 Nueces Ramp
Reversal PH II-A with funds available from the Water Capital Improvement
Program.
Sponsors:Street Department and Engineering Services
14.19-1053 Motion awarding Amendment 1 to a contract with Mott MacDonald, LLC in
the amount of $224,862 for a total restated fee of $247,362 to provide
engineering and design services for assistance with the North Beach
Coastal Protection project, effective upon issuance of Notice to Proceed,
with funding available in Bond 2018, Proposition A. (Council District 1)
Sponsors:Engineering Services
15.19-0985 Motion authorizing a three-year service agreement with Texas Land
Reclamation LLC, dba UTW Tire Collection Services, for tire collection and
recycling/disposal services for a total amount not to exceed $356,400.00,
effective upon issuance of a notice to proceed, with the first-year funding in
the amount of $118,800.00 through the General Fund and Fleet
Maintenance Services Fund.
Sponsors:Solid Waste Operations, Asset Management Department and Contracts
and Procurement
16.19-1145 Motion awarding a contract to Burns & McDonnell for services associated
with a Solid Waste Operational Assessment including engineering analysis
and business operations assessment in the amount of $144,800 effective
upon issuance of notice to proceed, with funding available from Solid
Waste 2019 Operations Fund.
Sponsors:Solid Waste Operations and Engineering Services
17.19-1069 Motion authorizing a lease-purchase with Vermeer Texas-Louisiana to
purchase one directional boring machine for an amount not to exceed
$428,244.34, effective upon issuance of a letter of acceptance, with
first-year in the amount of $85,448.88 funding available through the Gas
Fund.
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August 27, 2019City Council Meeting Agenda - Final-revised
Sponsors:Gas Department and Contracts and Procurement
18.19-1070 Motion authorizing a lease-purchase with EKA Government Sales Experts
to purchase two trenchers; a Ditch Witch RT45A compact trencher and a
Ditch Witch RT850T4 heavy duty trencher, in an amount not to exceed
$200,573.05, effective upon issuance of a letter of acceptance, with
first-year funding in the amount of $39,914.64 available in the Gas Fund.
Sponsors:Gas Department and Contracts and Procurement
19.19-1037 Motion authorizing a three-year supply agreement with Champion Industrial
Sales, LLC for the purchase of welding equipment and supplies, for a total
amount not exceed $100,739.94, effective upon issuance of a notice to
proceed, with first-year funding in the amount of $33,579.80 through the
Stores Fund.
Sponsors:Contracts and Procurement
20.19-1054 Motion authorizing a two-year service agreement with Patterson Capital
Management, L.P., dba Patterson & Associates, for investment advisor
services in an amount not to exceed $60,000.00, with two additional
two-year renewal options with escalation cost for a potential total amount
not to exceed $184,000.00, effective upon issuance of a notice to proceed,
with funding available in the General Fund.
Sponsors:Financial Services Department and Contracts and Procurement
L.RECESS FOR LUNCH
M.PUBLIC HEARINGS: (ITEMS 21 - 25)
21.19-1155 First Public Hearing on Fiscal Year 2020 Ad Valorem Tax Rate
Sponsors:Financial Services Department
22.19-1098 Zoning Case No. 0719-01 Corpus Christi Limousines Unlimited, Inc.
(District 1) Ordinance amending Zoning Ordinance 031465 on a property
at or near 4001 Leopard Street by adding a 12-month time extension to the
special permit time initially approved. Planning Commission and Staff
recommend Approval.
Sponsors:Development Services
23.19-1100 *This item has been rescheduled for October 1, 2019.*
Zoning Case No. 0719-02 B&A Terra Firma Development, LLC: (District
4) Ordinance rezoning property at or near 2110 Laguna Shores Road from
the “RE” Residential Estate District to the “RS-6” Single Family 6 District.
Planning Commission and Staff recommend Approval.
Sponsors:Development Services
24.19-1102 Zoning Case No: 0719-04 Guillermo Munoz. (District 1) Ordinance
rezoning property at or near 121 Pueblo Avenue from the “IL” Light
Industrial District to the “RM-3” Multi Family Residential District. Planning
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August 27, 2019City Council Meeting Agenda - Final-revised
Commission and Staff recommend Approval.
Sponsors:Development Services
25.19-1103 Zoning case No: 0719-03, Cloudcroft Land Ventures, Inc. (District 5)
Ordinance rezoning property at or near 6202 Yorktown Boulevard from the
“RM-1” Multifamily District to the “CN-1” Neighborhood Commercial
District. Planning Commission and Staff recommend Approval.
Sponsors:Development Services
N.REGULAR AGENDA: (NONE)
O.FIRST READING ORDINANCES: (ITEMS 26 - 28)
26.19-1022 Ordinance authorizing a Water Distribution Main Line Extension
Construction and Reimbursement Agreement with Esther Ybarra to extend
a line to a planned residential property located at 7541 Weber Road for a
term not to exceed 12 months; appropriating $101,950.24 from the Water
Distribution Main Trust Fund to reimburse developer. (District 3)
Sponsors:Development Services
27.19-1127 Ordinance authorizing a Water Distribution Main Extension Construction
and Reimbursement Agreement with NP Homes LLC to extend lines from
Rand Morgan Road and McNorton Road for a planned residential
subdivision, for a term not to exceed six months from the execution of the
agreement; appropriating $40,537.20 from the Water Distribution Main
Trust Fund to reimburse developer. (District 1)
Sponsors:Development Services
28.19-1201 Ordinance authorizing an agreement with Corpus Christi PATCH, Inc. to
allow use of portions of Taylor, Mesquite, Starr and Chaparral Streets for
the Que Bueno Taco Festival and related activities scheduled for
September 14, 2019.
Sponsors:Parks and Recreation Department
P.RECESS FOR CORPORATION MEETINGS: (ITEM 29)
29.19-1122 Annual Meeting of the North Padre Island Development Corporation
Sponsors:Business Liaison
Q.RECONVENE COUNCIL MEETING:
R.BRIEFINGS: (ITEM 30)
30.19-1051 Water Supply Trigger Point Factors and Recommendations
Sponsors:Water Utilities Department
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August 27, 2019City Council Meeting Agenda - Final-revised
S.EXECUTIVE SESSION: (ITEMS 31 - 32)
31.19-1211 Executive Session pursuant to Section Texas Government Code §
551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05
to consult with attorneys concerning legal issues related to contractual
obligations pursuant to the lease of property to SQH Sports &
Entertainment, Inc. near the intersection of State Highway 286 and Weber
Road and areas adjacent thereto and use of said property for matters
related to a sports complex and related uses, and pursuant to Texas
Government Code § 551.072 to discuss and deliberate the lease and
value of the aforementioned real property owned by the City in the
aforesaid locations when deliberation in open meeting would have a
detrimental effect on the position of the governmental body in negotiations
with a third person.
32.19-1212 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 U.S. Environmental
Protection Agency and Texas Commission on Environmental Quality
regulations regarding minimum dissolved oxygen standards for the Oso
Bay and/or parts thereof and related areas, discharge permits for the City’s
wastewater treatment plants, the regulation of the City’s wastewater
treatment system and potential litigation and/or consent decree(s) related
thereto, and other state and federal regulatory matters related to the
discharge and treatment of water and/or wastewater and requests for
modification of standards related thereto.
T.IDENTIFY COUNCIL FUTURE AGENDA ITEMS
U.ADJOURNMENT
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1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
City of Corpus Christi
Meeting Minutes
City Council
11:30 AM Council ChambersTuesday, August 20, 2019
Addendums may be added on Friday.
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 Communication department at
361-826-3211 to coordinate.
Mayor Joe McComb to call the meeting to order.A.
Mayor McComb called the meeting to order at 11:31 a.m.
Invocation to be given by Pastor Rob Bailey, Southside Community Church.B.
Pastor Rob Bailey gave the invocation.
Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be
led by Tammy Kelch Embrey, Director of Intergovernmental Relations.
C.
Tammy Kelch Embrey led the Pledge of Allegiance to the flag of the United
States and the Texas flag.
City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.D.
City Secretary Rebecca L. 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:
City Manager Peter Zanoni, City Attorney Miles K. Risley, and City Secretary
Rebecca L. Huerta.
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August 20, 2019City Council Meeting Minutes
Mayor Joe McComb,Council Member Roland Barrera,Council Member Rudy
Garza,Council Member Paulette Guajardo,Council Member Gil
Hernandez,Council Member Michael Hunter,Council Member Ben
Molina,Council Member Everett Roy, and Council Member Greg Smith
Present:9 -
Proclamations / CommendationsE.
1.Proclamation declaring August 26, 2019, "99th Anniversary of Women's
Equality Day".
Commendation for National Little League Majors Division, Corpus
Christi.
Commendation for Lucas Tinajero, USA Baseball 12U National Team.
Swearing-In Ceremony for Newly Appointed Board, Commission,
Committee and Corporation Members.
Mayor McComb presented the proclamation, the commendations and
conducted the swearing-in ceremony.
CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS:F.
Mayor McComb referred to City Manager's Comments. City Manager Peter
Zanoni reported on the following topics:
OTHERa.
1) A memo to Mayor, Council and 40 stakeholders regarding the changes in the
Development Services Department including the appointment of Al Raymond
as Director of Development Services, effective September 16, 2019, and
Michael Dice as Assistant Director of Development Services, effective August
26, 2019. City Manager Zanoni thanked Nina Nixon-Mendez for her leadership
as Director of Development Services and stated that she will continue with the
Development Services Department's leadership team. 2) The 78415 Community
Youth Development Program's (CYD), Back to School Bash will take place on
Saturday, August 24 from 9:00 a.m - 3:00 p.m. at the Corpus Christi Gym, 3202
Cabiness Parkway. 3) Reduced rate immunization will be offered during the
City/County Public Health District's annual back to school vaccine clinic on
Saturday, August 24 from 9:00 a.m. - 1:00 p.m., at 1702 Horne Rd. 4) Ray High
School Texan's Roundup Tailgate public event at Ray High School,
Wednesday, August 21 from 4:00 p.m. - 8:00 p.m. 5) City Manager Zanoni
reminded the public to be mindful of school zones and speed limits and
informed the Council and the public about a traffic safety project called Vision
Zero that aims to achieve a highway system with no fatalities or serious
injuries involving road traffic, and that Council Member Molina and the City
have accepted the leadership challenge to achieve the goal of eliminating
traffic-related deaths and pedestrian injuries. 6) The budget related sessions
with the public have been a success, receiving positive feedback from the
community, staff and Council, with the final meeting to take place on
Thursday, August 22 at the Dr. Clotilde P. Garcia Library (District 5).
MINUTES:G.
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August 20, 2019City Council Meeting Minutes
2.Regular Meeting of August 13, 2019 and Workshop Session of August 8,
2019.
A motion was made by Council Member Michael Hunter, seconded by Council
Member Gil Hernandez, that the Minutes be passed. The motion carried by a
unanimous vote.
BOARD & COMMITTEE APPOINTMENTS (NONE)H.
EXPLANATION OF COUNCIL ACTION:I.
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 Communication department at 361-826-3211 to
coordinate. All items on this agenda are considered public hearings.
J.
Mayor McComb referred to comments from the public. City Attorney Miles K.
Risley read the Rules of Decorum. City Secretary Rebecca L. Huerta conducted
the public comment period.
Errol Summerlin, Portland, TX, a member of and on behalf of Coastal Alliance
to Protect our Environment (CAPE), spoke about projects underway requiring
massive amounts of water, and projects being pursued by the Corpus Christi
Regional Economic Development Corporation (EDC), referred to Item 6 on the
agenda, and asked the Council to carefully consider the devastating impact
that massive industrialization in the Coastal Bend will have on the ecosystem
and the quality of life. C.J. Johnson, 509 S. Carancahua #25, spoke about the
importance of mental illness awareness in relation to shootings and domestic
violence and the need for assistance and cooperation from facilities that treat
mental illness. Jack Gordy, 4118 Bray Dr., spoke about the continued problem
of tree limbs blocking the City's sidewalks, and was asked to provide a list of
those locations to the City Manager. Wendy Herman, Coastal Bend Home
Builders Association, 5325 Yorktown, spoke in favor of the new grocery store
development on the Island, and about Development Services' antiquated
master plan, that the twenty-four (24) inch wastewater trunk line to service the
grocery store was not a requirement, asked Council to consider the best and
most equitable use of these limited funds and not what the master plan
required, that there is no mechanism in place for stakeholders to be notified
when there is an application for these trust funds, and stated that the
stakeholders, developers, and those who put money into the trust account are
willing to work with the new Director and Assistant Director of Development
Services to rewrite the rules for the use of the trust funds. Ernie Salinas, 6066
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August 20, 2019City Council Meeting Minutes
S. Alameda St., spoke regarding the changes made to Carson St. and Alameda
St. and said the City did not follow proper procedure regarding notification to
residents. Margaret Fratila, 3606 Tripoli Dr., spoke about the potential danger
to pedestrians who continue to walk in the turning lanes on the Island, the
need for sidewalks on the Island, recognized Gene Delauro of Development
Services as a small business advocate, and asked the Council to look into the
safety requirements with which building owners must comply before leasing
their properties to small business owners.
CONSENT AGENDA: (ITEMS 3 - 15)K.
Approval of the Consent Agenda
Mayor McComb referred to the Consent Agenda. Council members requested
that Items 5, 8 and 13 be pulled for individual consideration. There were no
comments from the public.
A motion was made by Council Member Smith to approve the Consent Agenda,
seconded by Council Member Molina. The motion carried by the following
vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
3.Ordinance appropriating $42,402.94 from damage claims into General
Fund to purchase a replacement Prisoner Transport Vehicle,
replacement ATV and other police equipment; and changing Operating
Budget by increasing revenue and expenditures in the General Fund by
$42,402.94.
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 031837
4.Ordinance authorizing an amendment of $10,916.00 to the Women, Infant
and Children’s Nutrition Program (WIC) grant contract for a total contract
amount of $868,850.00 for the period of October 1, 2018, through
September 30, 2019, and authorizing a contract amendment of
$868,850.00 for the period of October 1, 2019, through September 30,
2020, from the Health and Human Services Commission, and authorizing
a staff complement of 21 positions .
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 031838
6.Ordinance authorizing the City Manager to execute the Second
Amendment to the Raw Water Supply Contract with the San Patricio
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August 20, 2019City Council Meeting Minutes
Municipal Water District (SPMWD) to provide an additional 5,600
acre-feet of raw water per calendar year for SPMWD to provide to its
designated customer developing in San Patricio County; increasing the
SPMWD Raw Water Supply Contract from 41,200 acre-feet to a total of
46,800 acre-feet per calendar year.
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 031840
7.Ordinance authorizing a four-month service agreement for the purchase
of hardware, software, licensing, and professional services from Area
Electronics Systems, Inc. dba DataON Storage for $782,734.00 for the
datacenter remediation; appropriating $782,734.00 from the unreserved
fund balance in the Liability and Employee Benefits - General Liability
Fund; transferring to the IT Fund; and amending the FY 2018-2019
Operating Budget adopted by Ordinance No. 031548 funded through the
Liability and Employee Benefits - General Liability Fund.
This Ordinance was passed on second reading on the consent agenda.
Enactment No: 031841
9.Resolution rejecting the apparent low bid of Abel’s Paving & Construction
as non-responsive and authorizing the City Manager to award an
Indefinite Delivery/Indefinite Quantity (IDIQ) construction contract to CPC
Interests, LLC d/b/a Clark Pipeline Services, LLP as the lowest
responsive bidder, in an amount not to exceed $1,800,000.00 for the
Water Line Replacement IDIQ Program for one year with two (2) optional
one-year administrative renewals for a total contract price of
$5,400,000.00 with current funding available from the Water Capital
Improvement Program. This contract begins upon the issuance of Notice
to Proceed.
This Resolution was passed on the consent agenda.
Enactment No: 031842
10.Motion awarding a contract to Freese Nichols, Inc. in the amount of
$92,762 for the 2018 Highway Safety Improvement Program (HSIP) to
design five new and eleven upgraded traffic signals at four locations
funded by the Texas Department of Transportation (TxDOT) and Street
Bond 2016. (Council Districts 2 and 3)
This Motion was passed on the consent agenda.
Enactment No: M2019-133
11.Resolution authorizing amendment No. 1 to enCodePlus Software
License service agreement for a five-year extension with enCodePlus,
LLC of Sugar Land, Texas, to host the content of the Unified
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Development Code for a not to exceed total amount of $44 ,400.00 and a
revised service agreement value not to exceed $93,600.00; amendment
effective October 1, 2019, with first-year funding of $8,880.00 through the
Development Services Fund.
This Resolution was passed on the consent agenda.
Enactment No: 031843
12.Motion awarding a contract to Freese and Nichols, Inc. in the amount of
$225,000 for the Flour Bluff and Padre /Mustang Island Area
Development Plans update funded by the General Fund. (Council District
4)
This Motion was passed on the consent agenda.
Enactment No: M2019-134
14.Resolution authorizing a five-year supply agreement with Corpus Christi
Freightliner, Inc. of Corpus Christi, Texas, for the purchase of parts
needed to conduct repairs for Freightliner, Western Star and Sterling
equipment. Freightliner includes refuse trucks, brush trucks, self-loading
brush trucks and dump trucks. Western Star includes tractors for refuse
handling tractor/trailers. Sterling includes vacuum trucks. The total
amount for these parts is a not to exceed $1,238,000.00, effective upon
issuance of notice to proceed, with first-year funding of $20,633.30
through the Fleet Maintenance Service Fund.
This Resolution was passed on the consent agenda.
Enactment No: 031845
15.Resolution authorizing a five-year service agreement with Corpus Christi
Freightliner, Inc. of Corpus Christi, Texas, for repairs at vendor facilities
of Freightliner, Western Star and Sterling equipment. Freightliner
includes refuse trucks, brush trucks, self-loading brush trucks and dump
trucks. Western Star includes tractors for refuse handling tractor/trailers.
Sterling includes vacuum trucks. The service agreement is to be effective
October 1, 2019 for a total amount not to exceed $3,686,600.00, with
first-year funding in the amount of $737,320.00 through the Fleet
Maintenance Service Fund.
This Resolution was passed on the consent agenda.
Enactment No: 031846
8.Motion approving Amendment No. 6 to a Contract with HDR
Engineering, Inc., in the amount of $121,600 for a total restated fee of
$842,934 to provide for the development and submission of a permit
application to the Texas Commission on Environmental Quality (TCEQ)
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August 20, 2019City Council Meeting Minutes
for the Corpus Christi Aquifer Storage Recovery Feasibility Study with
funding available in the Raw Water Supply Development Charge Fund.
This amendment will only develop the necessary requirements to submit
an administratively completed permit application that once approved,
can lead to drilling of an Aquifer Storage and Recovery (ASR) test well.
Mayor McComb referred to Item 8.
City Manager Peter Zanoni announced that this item was being withdrawn.
5.Ordinance authorizing a Wastewater Trunk Main Line Extension
Construction and Reimbursement Agreement with Yasin Investment LLC
to extend a line south of Whitecap Boulevard along Palmira Avenue for a
commercial development for which the anchor store is IGA; appropriating
$899,786.39 from the Wastewater Trunk System Trust Fund to reimburse
developer. (District 4)
Mayor McComb referred to Item 5.
Council Members, City Manager Peter Zanoni, Director of Development
Services Nina Nixon-Mendez, and Development Services Engineer IV, Gabriel
Hinojosa discussed the following topics: that the applicant followed the rules of
the established trust fund and is entitled to reimbursement; the applicant was
offered an alternate route but chose to move forward with the master plan; that
the 24 inch wastewater trunk main line will service the IGA grocery store and
future developments; that a 10 inch line is not sufficient based on studies; the
reason for the difference in the size of the wastewater trunk main line in the
London area versus on the Island; that the current master plan was adopted in
2006; careful review of project requirements since the master plan has not
been updated since 2006; future separation of trust funds for commercial and
residential projects; imposing impact fees; and best practice analysis.
Council Member Barrera made a motion to approve the ordinance, seconded
by Council Member Hunter. This Ordinance was passed on second reading and
approved with the following vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hunter, Council Member Molina,
Council Member Roy and Council Member Smith
8 -
Absent:Council Member Hernandez1 -
Abstained:0
Enactment No: 031839
13.Resolution of the City of Corpus Christi, Texas finding that AEP Texas
Inc.’s (AEP) requested electric transmission and distribution rates and
charges within the city should be denied; finding that the City’s
reasonable rate case expenses shall be reimbursed by AEP; requiring
reimbursement of rate case expenses; finding that the meeting at which
this resolution is passed is open to the public as required by law; and
requiring notice of this resolution to AEP.
Page 7City of Corpus Christi Printed on 8/23/2019
August 20, 2019City Council Meeting Minutes
Mayor McComb referred to Item 13.
A council member and City Attorney Miles K. Risley discussed that the purpose
of Item 13 was not to deny AEP, Texas, Inc. (AEP) reimbursement of its proper
rate case expenses, but instead requiring AEP to justify the rate case expenses
it is requesting to the Public Utility Commission (PUC).
Council Member Hernandez made a motion to approve the resolution,
seconded by Council Member Garza. This Resolution was passed and
approved with the following vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
Enactment No: 031844
PUBLIC HEARINGS: (ITEMS 16 - 17)M.
16.Zoning Case No: 0619-02 Texas State Roofing Company, LLC (District
2). Ordinance rezoning property at or near 916 South Alameda from the
“CG-2” General Commercial District to the CG-2/SP” General
Commercial District with a Special Permit. Planning Commission and
Staff recommend Approval.
Mayor McComb referred to Item 16. Director of Development Services Nina
Nixon-Mendez stated that the purpose of this ordinance is to allow for the
installation of a monopole Cell Tower.
Director Nixon-Mendez presented information on the following topics: aerial
overview; subject property at 916 S. Alameda St.; zoning pattern; Planning
Commission and staff recommendation; public notification; set back
requirement; cell tower; utilities; and site plan.
Mayor McComb opened the public hearing. Jessica Knoll, 1362 Laura St.,
Wrightwood, CA, representing the applicant, a small cell tower company that
focuses on lower income cell carriers, spoke in favor of the location for the
small cell tower. There were no comments from the Council.
Mayor McComb closed the public hearing.
Council Member Garza 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:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
17.Zoning Case No. 0519-03 Sergio and Magali Martinez (District 1)
Ordinance rezoning property at or near 2934 Highland Avenue from the
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August 20, 2019City Council Meeting Minutes
“CN-1” Neighborhood Commercial District to the “RS-6” Single-Family 6
District. Planning Commission and Staff recommend Approval.
Mayor McComb referred to Item 17. Director of Development Services Nina
Nixon-Mendez stated that the purpose of this ordinance is to allow for the
construction of a Single-Family Home.
Director Nixon-Mendez presented information on the following topics: aerial
overview; subject property at 2934 Highland Avenue; zoning pattern; and
Planning Commission and staff recommendation.
Mayor McComb opened the public hearing. There were no comments from the
Council or the public. Mayor McComb closed the public hearing.
Council Member Garza made a motion to approve the ordinance, seconded by
Council Member Barrera. This Ordinance was passed on first reading and
approved with the following vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
BRIEFINGS: (ITEM 23)P.
23.Corpus Christi Regional Economic Development Corporation
(CCREDC) Quarterly Update to City Council (Q2 2019).
Mayor McComb deviated from the agenda and referred to Item No. 23.
President/CEO of the Corpus Christi Regional Economic Development
Corporation (EDC) Iain Vasey, stated that the purpose of this item was to
update the Council on the EDC's activities and the status of the local economy.
Mr. Vasey presented information on the following topics: the mission statement
of the EDC; employment by sector; project activity report; business attraction
and recruitment; business retention and expansion; what the EDC is working
on; Corpus Christi's housing affordability measures; and Corpus Christi's
cumulative impact.
Council members and Mr. Vasey discussed the following topics: future
developments for Corpus Christi's downtown area and the Island; future
developments requiring large amounts of water usage; efforts to attract
healthcare providers/facilities to offer their services in Corpus Christi; the most
recent unemployment rate; what is being done regarding affordable housing;
and recommending the EDC consider contacting the Naval Air Station to
determine if they would consider offering training on small scale helicopters or
diesel mechanics similar to training provided by Del Mar College and Texas
A&M University to assist the local workforce.
REGULAR AGENDA: (NONE)N.
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FIRST READING ORDINANCES: (ITEMS 18 - 22)O.
Mayor McComb referred to First Reading Ordinances. There were no
comments from the public. A council member pulled Items 20-23 for discussion.
Council Members, Chief Financial Officer Constance Sanchez and Bond
Counsel discussed the following topics: how much the taxpayers will save from
refunding bonds and issuing a news release when approved on second
reading; borrowing money from operating cash flow to replenish operating
funds; reasons for doing reimbursement resolutions before issuing bonds;
whether tax laws allow municipalities to reimburse themselves from the
general fund after issuance of bonds; how executing reimbursement
resolutions benefit the city; whether private companies do the same; and the
need to follow a normal process in the future.
Council Member Garza made a motion to approve Items 18-22, seconded by
Council Member Molina. The ordinances were passed on first reading and
approved with one vote.
18.Ordinance authorizing acceptance of $171,000 grant from Texas
Department of Transportation for the 2020 Comprehensive Selective
Traffic Enforcement Project to increase traffic enforcement with a City
match of $49,553.37 from the FY 2020 General Fund.
This Ordinance was passed on first reading and approved with the following
vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
19.Ordinance authorizing the purchase of 180 Police vehicle video recording
systems and a five-year service agreement for installation and
maintenance from Turn-Key Mobile, Inc. of Jefferson City, Missouri, via
Texas Department of Information Resources Cooperative for a total
amount not to exceed $1,541,113.15; appropriating $1,541,113.15 from
the unreserved fund balance of the Liability and Employee Benefits -
General Liability Fund; transferring to the IT Fund; and amending the FY
2018-2019 operating budget adopted by Ordinance No. 031548; funded
through the Liability and Employee Benefits - General Liability Fund.
This Ordinance was passed on first reading and approved with the following
vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
20.Ordinance authorizing the issuance of “City of Corpus Christi, Texas
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August 20, 2019City Council Meeting Minutes
Utility System Junior Lien Revenue Improvement and Refunding Bonds,
Series 2019” for Water and Wastewater Utility improvements in an
amount not to exceed $113,000,000 and authorizing other matters
incident and related thereto.
This Ordinance was passed on first reading and approved with the following
vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
21.Ordinance authorizing the issuance of “City of Corpus Christi, Texas
General Improvement Refunding Bonds, Series 2019” related to Parks
and Recreation improvements in an amount not to exceed $9,000,000
and authorizing other matters incident and related thereto.
This Ordinance was passed on first reading and approved with the following
vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
22.Ordinance authorizing the issuance of “City of Corpus Christi, Texas
General Improvement Refunding Bonds, Taxable Series 2019” related to
Airport improvements in an amount not to exceed $4,000,000 and
authorizing other matters incident and related thereto.
This Ordinance was passed on first reading and approved with the following
vote:
Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council
Member Guajardo, Council Member Hernandez, Council Member Hunter,
Council Member Molina, Council Member Roy and Council Member Smith
9 -
Abstained:0
EXECUTIVE SESSION: (ITEM 24)Q.
Mayor McComb referred to Executive Session Item 24. The Council went into
executive session at 1:22 p.m. The Council returned from executive session at
2:24 p.m.
24.Executive Session pursuant to Section 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 potential
acquisition of real property rights for facilities related to water treatment
plant equipment, pipelines, pumps, discharge points, and intake facilities,
and areas adjacent thereto and pursuant to Texas Government Code §
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August 20, 2019City Council Meeting Minutes
551.072 to discuss and deliberate the purchase and/or value of real
property rights for facilities related to water treatment plant equipment,
pipelines, pumps, discharge points, and intake facilities, and areas
adjacent thereto when deliberation in open meeting would have a
detrimental effect on the position of the governmental body in
negotiations with a third person.
This E-Session Item was discussed in executive session.
RECESS FOR LUNCHL.
The recess for lunch was held during Executive Session Item 24.
IDENTIFY COUNCIL FUTURE AGENDA ITEMSR.
Mayor McComb referred to Future Agenda Items. The following items were
identified: a presentation from the Utility Billing Office (UBO) on why customers
are still receiving high utility bills; clarification on the procedures for fines
related to early brush set out, whether fine will be imposed on the customer's
solid waste bill or the customer will be issued a citation to appear in court; and
resolving the issue of fines imposed on building owners when trash around
their building is being generated by the public.
ADJOURNMENTS.
The meeting was adjourned at 2:31 p.m.
Page 12City of Corpus Christi Printed on 8/23/2019
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
City of Corpus Christi
Meeting Minutes
City Council Workshop Session
9:00 AM City Council ChambersThursday, August 15, 2019
Streets, Engineering/Bond Program/CIP Budget, Solid Waste, Gas and Water Utilities
Public Notice - - ITEMS ON THIS AGENDA ARE 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.
THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE
PROHIBITED IN THE COUNCIL CHAMBERS DURING MEETINGS OF THE CITY
COUNCIL.
Mayor Joe McComb to call the meeting to order.A.
Mayor McComb called the meeting to order at 9:03 a.m.
City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.B.
City Secretary Rebecca L. 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:
City Manager Peter Zanoni, Senior Assistant City Attorney Lisa Aguilar and City
Secretary Rebecca L. Huerta.
Mayor Joe McComb, Council Member Roland Barrera, Council Member
Rudy Garza, Council Member Paulette Guajardo, Council Member Gil
Hernandez, Council Member Michael Hunter, Council Member Ben Molina,
Council Member Everett Roy, and Council Member Greg Smith
Present 9 -
Council Members Paulette Guajardo and Michael Hunter arrived at 9:05 a.m.
Council Member Roland Barrera arrived at 9:18 a.m.
BRIEFINGS TO CITY COUNCIL:C.
1.FY 2019-2020 Budget Workshop for Streets, Engineering/Bond
Program/CIP Budget, Solid Waste, Gas and Water Utilities
Departments.
Page 1City of Corpus Christi Printed on 8/22/2019
August 15, 2019City Council Workshop Session Meeting Minutes
Mayor McComb referred to Item 1.
City Manager Peter Zanoni stated that the purpose of this item is to present the
FY2019-2020 proposed budgets for Streets, Engineering/BondProgram/CIP
Budget, Solid Waste, Gas and Water Utilities. City Manager Zanoni discussed
upcoming public budget input and Council workshop sessions.
Director of Street Operations Albert Quintanilla presented information on the
following topics related to the Street Operations Department: mission
statement; about the Street Operations Department; organization; FY2019
achievements; performance measures; services; annual funding and funding
sources for street maintenance and residential street reconstruction; FY2020
street maintenance proposed budget; the FY2020 proposed street fund and
residential street rebuild program budget; and FY2020 enhancements.
Director of Engineering Services Jeff Edmonds presented information on the
following topics related to the Street Engineering Department: mission
statement; about the Engineering Services Department; organization; FY2019
achievements; performance measures; services; FY2020 Engineering
Department Fund budget; FY2020 enhancements; capital improvement
program (CIP) highlights; FY2020 total capital budget and available resources
distributed over major spending areas; funding sources versus funding uses;
and examples of CIP projects.
Interim Director of Solid Waste Services David Lehfeldt presented information
on the following topics related to the Solid Waste Services Department:
mission statement; about the Solid Waste Services Department; organization;
FY2019 achievements; performance measures; services; FY2020 Solid Waste
Department proposed revenue and General Fund budget; and FY2020
enhancements.
Council members and Directors Quintanilla, Edmonds and Lehfeldt discussed
the following topics: street maintenance and repair funding; funding and
staffing resources for project management; developing work plans and
providing Council with quarterly reports; developing monthly work plans for all
departments; how the increased costs to operate the landfill and the cost of
proposed enhancements will be funded and the effect on utility rates;
appreciation for the stormwater basket program; the reason for overtime in
Traffic Signals; overtime targets; ways to reduce overtime; interconnecting all
traffic signals in the city; the equipment used to do ultra thin applications to
roadways; the equipment used for seal coating; how streets are selected to be
worked on and the factors used in the selection process that may lead to
increased costs; what comprises the amounts in professional and temporary
services in the Engineering Services budget; the purpose of lease payments
and rentals in the Solid Waste Services budget; if rentals are short- or
long-term in nature; the reasons for overtime at the J. C. Elliott Landfill; the
reasons for over time department-wide in Solid Waste Services; that City
Manager Zanoni has directed directors in each city department to monitor and
manage overtime; the status of advance-engineering Bond 2020 projects in the
proposed FY2020 Engineering Services Department budget and bringing a plan
to Council for same; expanding asphalt recycling; the number of traffic lights
that are currently integrated and that were integrated in past years and its
relationship to reducing traffic congestion; the actual number of graffiti cases
remediated; having increased the efficiency with which potholes are
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August 15, 2019City Council Workshop Session Meeting Minutes
addressed by focusing on geographic location; the type of asphalt used for
potholes and cracks; the effect rain has on pothole repairs; efforts made to
improve pothole repairs to better withstand the effects of rain; a request that
quarterly reports be provided to Council on street operations; the quality of
asphalt used in relation to the effects of rain on pothole repairs; a request to
provide Council with data on the areas of the city where graffiti and illegal
dumping are prevalent; reasons for increases in graffiti; and measures that are
being taken and that can be taken to curb illegal dumping.
Director of Gas Operations Bill Mahaffey presented information on the
following topics related to the Gas Operations Department: mission statement;
about the Gas Department; organizational structure; FY2019 achievements;
performance measures; services; FY2020 Gas Department Fund proposed
budget; and FY2020 enhancements.
Director of Water Utilities Kevin Norton presented information on the following
topics related to the Water Utilities Department: mission statement; about the
Water Utilities Department; regional water supplier information; FY2020
organizational structure; FY2019 achievements; performance measures;
services; FY2020 Water Utilities Department proposed budget; and FY2020
enhancements for water, wastewater, and storm water.
Assistant Director of Support Services for the Water Utilities Department Reba
George presented information on the following topics related to the Water
Utilities Department: a summary of the proposed 2020 and 2021 water and
wastewater rates; proposed 2020 and 2021 water and wastewater rates; sample
residential and commercial water and wastewater charges; and the storm
water utility fee.
Chair of the Rate Advisory Group J. J. Hart presented information on the
following topics: the Group's membership; meetings held; that the group
toured the O. N. Stevens Water Treatment Plant; and the Rate Advisory Group's
recommendations.
Council members and staff discussed the following topics: separating water
and wastewater rates and related timeline; the purpose of temporary services
in the Gas and Water Utilities' FY2020 proposed budgets; policy regarding use
of monies in reserve appropriation funds; who the executive director and
director of Water Utilities oversee; not correlating wastewater rates to water
usage in summer months; the automated meter reading (AMR) process in the
Gas Department; meter transmission unit (MTU) replacement efforts by the Gas
Department; potential savings from installing gas-fueled/air-cooled chillers,
like the one in use at the Gas Department, at other City facilities; returning to
winter-quarter averaging; efforts in place to maintain meters and MTUs; if the
Rate Advisory Group should remain active; continued public involvement; the
average life of gas meters; the material from which gas meters are made; the
origins of the Rate Advisory Committee; and identifying the cost of operating
the storm water function and the method by which that cost is to be allocated
across utility customers.
The Commercial Representative on the Rate Advisory Group David Loeb
discussed the following topics: legal concerns regarding the setting of utility
rates; past consultant-created utility rates; and the effect of changes in the
utility rate model on high- and low-volume users.
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August 15, 2019City Council Workshop Session Meeting Minutes
A council member questioned if the City's Infor system can accommodate a
return to winter-quarter averaging.
ADJOURNMENTD.
The meeting was adjourned at 11:26 a.m.
Page 4City of Corpus Christi Printed on 8/22/2019
Duties
Composition
Name District Term Appt. date End date Appointing Authority Position Status Category Attendance
*Jody Perkes Hughes District 2 Partial 7/16/2019 9/1/2019
Mayor with Council
Confirmation
Seeking
reappointment Public Art/ Public Space 1/1 meeting 100%
*James Moore District 5 Partial 2/26/2019 9/1/2019
Mayor with Council
Confirmation
Seeking
reappointment Performing Arts 3/3 meetings 100%
**Sharon Sedwick District 5 1 9/27/2016 9/1/2019
Mayor with Council
Confirmation
Seeking
reinstatement
Business Dev.
Groups/Corporate Rep.3/5 meetings 60%
Sarah E Coles District 2 1 12/8/2015 9/1/2020
Mayor with Council
Confirmation Chair Active Youth/Education
Nicholas P Gignac District 4 1 12/19/2017 9/1/2020
Mayor with Council
Confirmation Active Architecture
Carolyn M Mauck District 4 1 12/19/2017 9/1/2020
Mayor with Council
Confirmation Active Higher Education
Wallace W Echols jr District 4 Partial 7/16/2019 9/1/2021
Mayor with Council
Confirmation Active Marketing
Dr. Laura A Petican District 4 2 9/2/2018 9/1/2021
Mayor with Council
Confirmation Active Visual Arts
Dr Abu N M
Waheeduzzaman District 5 1 2/26/2019 9/1/2021
Mayor with Council
Confirmation Active Economic Dev./ Tourism
Nine (9) members appointed by the Mayor subject to confirmation by the Council for three-year terms to provide advice on beautification and cultural development of
the City. The Commission shall represent the following categories: (1) Marketing representative (1) Economic Development/Tourism representative; (1) Public
Space/Public Art representative; (1) Youth/Education representative; (1) Performing Arts representative; (1) Visual Arts representative; (1) Architecture representative;
(1) Higher Education representative; and (1) Business Development Groups/Corporate representative. The Commission may organize and elect a Chairman annually and
adopt such administrative procedures as are necessary to accomplish its purposes.
The Arts & Cultural Commission recommends the use, location, lease or purchase of works of art to be considered a part of the beautification or cultural development of
the City; to advise owners of private property in relation to beautification of their properties; to prepare specifications for the maintenance of works of art and to
inspect such work for the guidance of the City departments concerned; to advise with respect to the design of buildings, bridges or other structures on city property if
submitted to the Commission; to study and evaluate the activities in and the uses made of the Bayfront Arts & Science Park, and to plan the Park's development for
future activities and uses.
*Three (3) vacancies with terms to 9-1-22, representing the following categories: 1 - Business Development Groups/Corporate Representative, 1 - Public Art/Public
Space and 1 - Performing Arts. (Mayoral appointment subject to confirmation by Council).
**Ms. Sedwick was out of town for two meetings for work and her daughter's wedding. She is asking to be reinstated to finish projects they have started.
ARTS & CULTURAL COMMISSION
Name District Category
Sheridan A Benning District 4
Visual Arts, Marketing and Business Development Group/Corporate
Rep.
Nicholas Colosi District 4 Higher Education and Performing Arts
Oscar E Dodier District 2 Performing Arts
John Garcia District 5 Economic Development/Tourism
Jose Gonzales IV District 2 Visual Arts, Public Art/Public Space and Higher Education
Laura J Monahan District 4 Visual Arts
Jason Page District 4 Visual Arts and Marketing
Sammie E Ramón District 4
Visual Arts, Public Art/Public Space, Architecture, Economic
Development/Tourism, Marketing, Business Development
Group/Corporate Rep. and Performing Arts
Erica G Tamez District 1 Public Arts/Public Space
Emily C Zertuche District 5 Economic Development/Tourism and Marketing
ARTS & CULTURAL COMMISSION
Applicants
Duties
Composition
Name District Term Appt. date End date
Appointing
Authority Position Status Category Attendance
*Carlos A Barrera District 2 1 9/27/2016 8/31/2019 City Council
Not seeking
reappointment
*Odelia Soto District 1 1 8/8/2017 8/31/2019 City Council Resigned
*Lisa Torres District 2 1 9/27/2016 8/31/2019 City Council Chair
Seeking
reappointment 78415 Resident 6/6 meetings 100%
*Marlena L Asocar Wilson District 4 Partial 2/12/2019 8/31/2019 City Council Resigned
Rene R Gutierrez District 3 Partial 2/12/2019 8/31/2020 City Council Active 78415 Resident
Velma G Lozano District 4 2 9/27/2016 8/31/2020 City Council Active
Ricardo Pimentel Sr.District 2 2 9/27/2016 8/31/2020 City Council Active 78415 Resident
Simone Sanders District 3 2 9/27/2016 8/31/2020 City Council Active 78415 Resident
Deborah Sherrill District 2 Partial 2/12/2019 8/31/2020 City Council Active 78415 Resident
*Four (4) vacancies with term to 8-31-21, representing the following categories: 3 - Regular Members and 1 - 78415 Resident. (The Community Youth
Development (78415) Program Steering Committee recommends the reappointment of Lisa Torres and the new appointments of Job Gonzalez, Chris Mitchell
and Verna Yanez.
The Community Youth Development (78415) Program Steering Committee advises the City Council on a periodic basis, as requested by the City Council,
regarding the progress of the Community Youth Development Program and makes recommendations to the City Council on items pertaining to the Community
Youth Development Program.
Nine (9) voting members with two-year, staggered terms. The officers of the committee shall be residents of the 78415 zip code area. City guidelines require
that at least 51% of the collaborative steering committee members must be community residents or people closely connected to the community who are not
social service providers. City guidelines also require that no members of the committee may be related to each other.
COMMUNITY YOUTH DEVELOPMENT (78415) PROGRAM STEERING COMMITTEE
Name District Category
Job Gonzalez District 2 78415 Resident and Regular Member
Tosha James District 4 Regular Member
Chris Mitchell District 4 Regular Member
Verna Yanez District 3 Regular Member
COMMUNITY YOUTH DEVELOPMENT (78415) PROGRAM STEERING COMMITTEE
Applicants
Duties
Composition
Name District Term Start date End date Appointing Authority Position Status Category
*Veronica Marsello District 2 2 3/24/2015 6/16/2019 City Council Secretary
Not seeking
reappointment SCP Vol. Station
*Jeannine M Leal District 4 2 3/24/2015 6/16/2020 City Council Resigned At - Large
Christine Head District 1 1 5/9/2017 6/16/2020 City Council Active SCP Volunteer
Lidia Lopez District 3 1 4/9/2019 6/16/2020 City Council Active At-Large
Maria I Odeh District 2 2 7/18/2017 6/16/2021 City Council Chair Active At-Large
Gloria Ortiz District 1 1 11/14/2017 6/16/2021 City Council Active At-Large
Linda Alonzo District 4 1 6/11/2019 6/16/2021 City Council Active At-Large
The committee shall consist of seven (7) members and must express an interest in the issues of older adults and have knowledge of the capabilities of older
adults. The committee shall be composed of the following: 1 - SCP Volunteer (active volunteer for one-year/serve minimum fifteen (15) hours per week), 1 - SCP
Volunteer Workstation representative (executive, director or similar leadership position at a current SCP Volunteer Station), and 5 - At-Large. All terms shall be
two (2) years.
*Two (2) vacancies with terms to 6-16-20 and 6-16-21, representing the following categories: 1 - At-Large and 1 - SCP Volunteer Station. (The Senior
Companion Program Advisory Committee is recommending the new appointment of Sandra Perez (At-Large) and Betsy Miller (SCP Volunteer Station).
SENIOR COMPANION PROGRAM ADVISORY COMMITTEE
The Senior Companion Program Advisory Committee advises the City Council, City Manager, and Parks Department Staff regarding the Senior Companion
Program (SCP) including, but not limited to: recruitment strategies; providing support in recruitment of volunteers and volunteer stations; serving as community
advocates and liaisons; assisting in development of non-federal resources to include fundraising; advising on programming for impact; advising on how to
measure trends and impact of trends in the community; assisting with development and implementation of program evaluations and surveys; conducting an
annual assessment of the program by surveying program volunteers; bi-annually assessing project accomplishments and impact; and attending special events
and activities related to the SCP.
Name District Category
Priscilla S Berlanga District 1 At-Large
Stephanie M Brown District 2 At-Large
Betsy Miller District 5 SCP Volunteer Work Station Rep. and At-Large
Sandra S Perez District 5 At-Large
SENIOR COMPANION PROGRAM ADVISORY COMMITTEE
Applicants
Duties
Composition
Name District Term Appt. date End date
Appointing
Authority Position Status Category Attendance
*Gargi Bhowal District 5 Partial 6/12/2018 9/1/2019 City Council
Seeking
reappointment
United C.C. Chamber of
Commerce 7/10 meetings 70%
*Luis F Cabrera District 2 Partial 9/18/2018 9/1/2019 City Council
Seeking
reappointment Port Industries of C.C.
9/10 meetings 90%
(1excused absence)
*Susane "Westi" Horn District 5 Partial 3/26/2019 9/1/2019 City Council
Seeking
reappointment
Advertising/Public
Relations 4/4 meetings 100%
Heather Moretzsohn District 4 1 9/18/2018 9/1/2019 City Council Active Ex-officio, non-voting
Mr. Fernando Fernandez
Jr.District 3 Partial 2/19/2019 9/1/2020 City Council Active At-Large
Almira Flores District 4 1 11/7/2017 9/1/2020 City Council Active Arts/Cultural
Susana Martinez District 5 1 11/7/2017 9/1/2020 City Council Active Higher Education Rep.
SISTER CITY COMMITTEE
The Sister City Committee studies ways and means of improving relations with the Corpus Christi Sister Cities and to advise and consult with and assist the Mayor, the
City Council, the City Manager and all other City agencies, boards and officials in accomplishing the purposes of the Sister City Program.
The committee shall consist of a steering committee and various subcommittees. The steering committee shall consist of nine (9) members who shall be broadly
representative of the racial, religious and ethnic groups in the community. The members shall be appointed by the City Council and shall serve three-year terms or
until their successors are appointed and qualified. The steering committee shall be responsible for the overall administration and implementation of the City's Sister
City Program. The steering committee shall be comprised of representatives of the following categories: Economic Development Sector; Greater Corpus Christi
Hospitality Association; Port Industries of Corpus Christi; Corpus Christi Chamber of Commerce; Higher Education Institution; Advertising/Public Relations;
Arts/Cultural; and two (2) At-Large. In addition, representatives from the following City departments shall serve as ex-officio, non-voting members of the steering
committee: Mayor's Office, Corpus Christi International Airport and Parks and Recreation. The officers of the steering committee shall consist of a General Chair and
Vice-Chair. The Chair and Vice-Chair shall be elected by majority vote of the Sister City Committee annually. If the General Chair is absent, the Vice-Chair shall serve as
General Chair during his/her absence. The steering committee may appoint any other subcommittee as, in its judgment, will aid it in carrying out its duties. The
steering committee shall determine the membership of each said subcommittee, its duties and chairman. The membership of each said subcommittee shall consist of
members of the steering committee and, at the option of the steering committee, members from the community at-large.
*Three (3) vacancies with terms to 9-1-21, representing the following categories: 1 - Port Industries of Corpus Christi, 1 - United Corpus Christi Chamber of
Commerce and 1- Advertising/Public Relations.
Name District Term Appt. date End date
Appointing
Authority Position Status Category Attendance
Deacon Mark C Arnold District 4 1 9/18/2018 9/1/2021 City Council Active At -Large
Melody H. Cooper District 3 1 11/7/2017 9/1/2021 City Council Chair Active Economic Dev. Sector
Ms Sharron K Hines District 4 1 9/18/2018 9/1/2021 City Council Active
Greater C.C. Hospitality
Assoc.
C.C. International
Airport Rep.N/A N/A N/A
Ex-Officio,
Non-voting Active
Mayor's Office Rep.N/A N/A N/A
Ex-Officio,
Non-voting Active
Parks and Recreation
Rep.N/A N/A N/A
Ex-Officio,
Non-voting Active
DATE:July 23, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, FAICP, Director,
Development Services Department
NinaM@cctexas.com
(361) 826-3276
CAPTION:
Case No: 0619-02 Texas State Roofing Company, LLC (District 2). Ordinance rezoning property
at or near 916 South Alameda from the “CG-2” General Commercial District to the “CG-2/SP”
General Commercial District with a Special Permit.
PURPOSE:
The purpose of this item is to allow for the installation of a monopole Cell Tower.
BACKGROUND AND FINDINGS:
The subject property is 2,500 sq. ft. in size. The applicant is proposing to install a monopole Cell
Tower. The current “CG-2” General Commercial District allows apartments, restaurants, mini-
storage, bars, and vehicles sales/repair. The “CG-2/SP” General Commercial District with a
Special Permit will allow the monopole Cell Tower.
Mailing Notification
Number of Notices Mailed
16 within 200-foot notification area
5 outside notification area
As of August 12, 2019:
In Favor
7 inside notification area
0 outside notification area
In Opposition
0 inside notification area
0 outside notification area
Totaling 23.18% of the land within the 200-foot notification area in favor.
Rezoning a portion of property at or near 916 South Alameda Street.
AGENDA MEMORANDUM
Public Hearing/First Reading Ordinance for the City Council Meeting 8/20/2019
Second Reading Ordinance for the City Council Meeting 8/27/2019
ALTERNATIVES:
1. Denial of the change of zoning from the from the “CG-2” General Commercial District to the
“CG-2/SP” General Commercial District with a Special Permit with condition.
2. Approve the request of the “CG-2/SP” General Commercial District with a Special Permit
without condition.
OTHER CONSIDERATIONS:
None.
CONFORMITY TO CITY POLICY:
The subject property is located within the boundaries of the Downtown Area Development Plan
and is planned for Mixed Use. The proposed rezoning to the “CG-2/SP” General Commercial
District with Special Permit is consistent with the Future Land Use Map.
EMERGENCY / NON-EMERGENCY:
Non-Emergency
DEPARTMENTAL CLEARANCES:
Legal and Planning Commission
FINANCIAL IMPACT:
□Operating □ Revenue □ Capital (X) Not applicable
Fiscal Year:
2018-2019 Current Year Future Years TOTALS
Line Item Budget
Encumbered / Expended
Amount
This item
BALANCE
Funding Detail:
Fund:N/A
Organization/Activity: N/A
Mission Element:N/A
Project #:N/A
Account:N/A
RECOMMENDATION:
Planning Commission and Staff Recommendation (June 26, 2019):
Approval of the change of zoning from the “CG-2” General Commercial District to the “CG-2/SP”
General Commercial District with a Special Permit with a condition.
Condition: Provide an engineering drawing prepared, signed and sealed by a Texas licensed
professional engineer, that the proposed cell tower will be able to withstand a sustained wind
speed of 130 mph.
Vote Results:
For: 8
Opposed: 0
Absent: 0
Abstained:0
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Presentation - Aerial Map
Planning Commission Final Report
Zoning Case No: 0619-02 Texas State Roofing Company, LLC: Ordinance rezoning
property at or near 916 South Alameda from the “CG-2” General Commercial
District to the “CG-2/SP” General Commercial District with a Special Permit.
WHEREAS, the Planning Commission has forwarded to the City Council its final
report and recommendation regarding the application of Texas State Roofing Company, LLC
(“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, a public hearing was held on
Wednesday, June 26, 2019, during a meeting of the Planning Commission. The Planning
Commission recommended approval of the change of zoning from the “CG-2” General
Commercial District to the “CG-2/SP” General Commercial District with a Special Permit
and on Tuesday, August 20, 2019, 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 Texas State Roofing Company, LLC (“Owner”), the
Unified Development Code (“UDC”) of the City of Corpus Christi, Texas (“City”), is
amended by changing the zoning on a property described as being a portion of Lot 8,
Johnson Addition, for zoning purposes, at or near 916 South Alameda (located along the
east side of South Alameda Street, south of Coleman Avenue, and north of Buford Street)
from the “CG-2” General Commercial District to the “CG-2/SP” General Commercial
District with a Special Permit,(Zoning Map No. 045043), as shown in Exhibits “A” and “B”.
Exhibit A 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 Special Permit granted in Section 1 of this ordinance is subject to the
Owner following the condition listed below:
Condition:To Provide an engineering drawing prepared, signed and sealed by a Texas
licensed professional engineer, that the proposed cell tower will be able to withstand a
sustained wind speed of 130 mph.
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
Page 2 of 5
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 6. Publication shall be made in the City’s official publication as required by the
City’s Charter.
K:\DevelopmentSvcs\SHARED\ZONING CASES\2019\0619-02 Texas Roofing Company, LLC\Council Documents\Ordinance (ON) -
0619-02 Texas Roofing Company.docx
Page 3 of 5
That the foregoing ordinance was read for the first time and passed to its second
reading on this the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter ______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this
the _____ day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter ______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Page 4 of 5
Exhibit A
Page 5 of 5
Exhibit B
City Council Presentation
August 20, 2019
Zoning Case #0619-02
Texas Roofing Company, LLC
Rezoning for a Property at
916 South Alameda Street
2
Aerial Overview
Subject Property at
916 S. Alameda Street
3
N
4.62 Acre
Remainder
4
Zoning Pattern
5
Planning Commission and
Staff Recommendation
Approval of the change of zoning from the “CG-2” General
Commercial District to the “CG-2/SP” General Commercial District
with a Special Permit.
Condition
Provide an engineering drawing prepared, signed and sealed by a
Texas licensed professional engineer, that the proposed cell tower
will be able to withstand a sustained wind speed of 130 mph.
6
Public Notification
16 Notices mailed inside 200’ buffer
2 Notices mailed outside 200’ buffer
Notification Area
Opposed: 0 (0.00%)
In Favor: 7 (23.18)
OO
OOOO
O
Set-back Requirement
7
130 feet
180 feet Required
Cell Tower
8
9
Utilities
Water:
8-inch C900
Wastewater:
8-inch VCP
Gas:
2-inch Service Line
Storm Water:
On-street inlets
Site Plan
10
STAFF REPORT
Case No. 0619-02
INFOR No. 19ZN1014
Planning Commission Hearing Date: June 26, 2019 Applicant & Legal Description Owner: Texas State Roofing Company, LLC
Applicant: NTCH-NM, LLC
Location Address: Being a portion of Lot 8, Johnson Addition, for zoning
purposes, an addition to the City of Corpus Christi, Nueces County, Texas,
according to the map or plat thereof recorded in Volume 8, Pages 308-310, of
the Deed Records of Nueces County, Texas. Zoning Request From: “CG-2” General Commercial District
To: “CG-2/SP” General Commercial District with a Special Permit
Area: 2,500 sq. ft
Purpose of Request: To allow for the construction of a cell tower. Existing Zoning and Land Uses Existing Zoning District Existing
Land Use
Future
Land Use
Site “CG-2 General Commercial Vacant Mixed Use
North “CG-2 General Commercial Commercial Mixed Use
South “C-1” Commercial Commercial Mixed Use
East “C-1” Commercial Commercial Mixed Use
West “RM-3” Medium Density
Residential
Single
Family/Medium
Density
Residential
RM-3 Medium
Density ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries
of the Downtown Area Development Plan and is planned for Mixed Use. The
proposed rezoning to the “CG-2/SP General Commercial with Special Permit
District is consistent with the Future Land Use Map.
Map No.: 045043
Zoning Violations: None Transportation Transportation and Circulation: The portion of subject property where the
proposed cell tower will be located has approximately 130 feet to street
frontage along S Alameda Street which is designated as an “A3” Primary
Arterial Street. According to the Urban Transportation Plan, a Primary Arterial
Street can convey a capacity between 30,000 and 48,000 Average Daily Trips
(ADT).
Staff Report
Page 2
Street R.O.W. Street
Urban
Transportation Plan
Type
Proposed
Section
Existing
Section
Traffic
Volume
S. Alameda
Street “A3” Primary Arterial 130’ ROW
79’ paved
123’ ROW
91’ paved
Staff Summary:
Requested Zoning: The applicant is requesting a rezoning from the ““CG-2” General
Commercial District to the “CG-2/SP” General Commercial District with a Special Permit
to allow for the construction and installation of a 120 feet tall monopole Cell Tower.
Drawings submitted show Four (4) feet Landscape area, twenty (20) feet access and
utility easement, and six (6) foot chain link fence. The applicant submitted a report
including analytic signal photo coverage describing the tower with technical design
information and the reason for the specific location selection. Technical design drawings
elaborating the structural integrity of the tower has been provided. The nearest cell tower
to this location is more than one mile away.
Applicant stated that besides T-Mobile being the main user, they intend to lease space to
other telecommunication providers such as AT&T, Sprint/Nextel, Verizon, local carriers
including trucking companies and local internet provider.
Required setbacks for CG-2 Zoning District are: Front-20, Side and Rear-0 feet.
Per the UDC 5.5.3.E.2&3, the setback for wireless commun ication facilities shall be a
minimum of one and a half times the height of the tower from a public right of way of all
arterial street and from any residential dwelling. The distance from South Alameda Street
in this case is measured at 130 feet. The height of the proposed cell tower being 120 feet,
requires a setback distance of 180 feet from S. Alameda Street.
The setback criteria for nearby residential dwellings is met. The location of the proposed
cell tower to S. Alameda Street falls 50 feet short of the required street setback.
According to UDC.5.5.3. E.5.
The Building Official may allow the construction of a wireless telecommunication facility
that is not adjacent to a dwelling within the setback required by this section if the tower, is
built to substantially higher wind load standards. The minimum setbacks from roadways
may be reduced to the minimum required yard setbacks if the tower will withstand a
sustained wind speed of 130 mph, which is equal to the highest recorded sustained wind
speeds experienced within the City.
To waive the above setback requirement, the applicant will be required to produce the
engineering drawing/exhibit windstorm certificate that demonstrate the permitted
proposed cell tower will meet this sustained wind speed of 130mph criteria. This
drawing/exhibit will be prepared, signed and sealed by a Texas licensed professional
engineer.
Staff Report
Page 3
Development Plan: The subject property is 2,500 sq. ft. in size. The applicant is
proposing to install a monopole Cell Tower.
Existing Land Uses & Zoning: The subject property is currently “CG-2 General
Commercial District, being a portion of a vacant land, owned by Anastos H. & WF,
zoned in 1947. Properties to the north are mostly “CG-2 General Commercial District.
Properties to the south and east are zoned “C-1” Commercial District. Properties to the
west are “RM-3” Medium Density Residential.
AICUZ: The subject property is not located in one of the Navy’s Air Installation
Compatibility Use Zones (AICUZ).
Plat Status: The property is platted.
Utilities:
Water: 8-inch C900 line located along S. Alameda Street
Wastewater: 8-inch VCP line located along the western property line.
Gas: 2-inch Service Line located along the eastern property line.
Storm Water: Inlets along S. Alameda Street.
Plan CC & Area Development Plan Consistency: The subject property is located
within the boundaries of the Downtown Area Development Plan and it is planned for
Mixed Use Development. The proposed rezoning to the “CG-2/SP General Commercial
with Special Permit is generally consistent with the adopted Comprehensive Plan (Plan
CC). The following policies should be considered:
• The objective of regulating telecommuting facilities is to avoid the creation of
visual distractions, prevent obstructions to the view of pedestrians and motorists
on public thoroughfares, and ensure the structural integrity of supporting
structures. (UDC 5.5.1)
• Promote a balanced mix of land uses to accommodate continuous growth and
promote the proper location of land uses based on compatibility .
Department Comments:
• The proposed rezoning inconsistent with the Future Land Use Map. However, the
proposed rezoning is generally consistent with the adopted Comprehensive Plan
(Plan CC) and warrants an amendment to the Future Land Use Map.
• The is the need to regulate the location of wireless telecommunication facilities in
order to minimize their number, to protect and promote public safety, and minimize
and mitigate any adverse visual or aesthetic impacts on the community while
promoting the orderly development of telecommunication facility within the City.
(UDC 5.5.1)
• Installation, construction, alteration, modification or replacement of
telecommunications towers and antennas, when permitted by federal law and the
laws of the State of Texas, shall be regulated and governed by the use regulations
and requirements of the UDC 5.5.2: General Provisions-Applications.
Staff Recommendation:
Conditional Approval of the change of zoning from the “CG-2” General Commercial
District to the “CG-2/SP” General Commercial District with a Special Permit.
Staff Report
Page 4
Condition
Provide an engineering drawing prepared, signed and sealed by a Texas licensed
professional engineer, that the proposed cell tower will be able to withstand a sustained
wind speed of 130 mph.
Public Notification Number of Notices Mailed – 16 within 200-foot notification area
5 outside notification area
As of June 26, 2019:
In Favor – 7 inside notification area
– 0 outside notification area
In Opposition – 0 inside notification area
– 0 outside notification area
Totaling 23.18% of the land within the 200-foot notification area in favor.
Attachments:
A. Location Map (Existing Zoning & Notice Area)
B. Public Comments Received (if any)
K:\DevelopmentSvcs\SHARED\ZONING CASES\2019\0619-02 Texas State Roofing Company \PC Documents\Staff Report_0619-02texasstateroofing
company.docx
Staff Report
Page 5
Staff Report
Page 6
Staff Report
Page 7
Staff Report
Page 8
Staff Report
Page 9
Staff Report
Page 10
Staff Report
Page 11
Staff Report
Page 12
DATE:July 22, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, FAICP, Director,
Development Services Department
NinaM@cctexas.com
(361) 826-3276
CAPTION:
Zoning Case No. 0519-03 Sergio and Magali Martinez (District 1). Ordinance rezoning
property at or near 2934 Highland Avenue from the “CN-1” Neighborhood Commercial
District to the “RS-6” Single-Family 6 District.
PURPOSE:
The purpose of this item is to allow for the construction of a Single-Family Home.
BACKGROUND AND FINDINGS:
The subject property is 0.35 acres in size. The owner is proposing a Single-Family
Home. The current zoning is “CN-1” Neighborhood Commercial District and permits
apartments, office, hotels, restaurants and retail. The “RS-6” Single-Family District
allows Single-Family homes on a minimum 6,000 square foot lot.
Mailing Notification
As of August 12, 2019:
Number of Notices Mailed
52 within 200-foot notification area
6 outside notification area
In Favor
1 inside notification area
0 outside notification area
In Opposition
0 inside notification area
Rezoning property at or near 2934 Highland Avenue
AGENDA MEMORANDUM
Public Hearing/First Reading Ordinance for the City Council Meeting 8/20/2019
Second Reading Ordinance for the City Council Meeting 8/27/2019
0 outside notification area
Totaling 0.242% of the land within the 200-foot notification area in favor.
ALTERNATIVES:
1. Deny the request of “RS-6” Single-Family 6 District.
OTHER CONSIDERATIONS:
None.
CONFORMITY TO CITY POLICY:
The subject property is located within the boundaries of the Northwest Area
Development Plan. The proposed rezoning to the “RS-6” Single-Family 6 District is
generally consistent with the adopted Comprehensive Plan (Plan CC) and consistent
with the Future Land Use Map.
EMERGENCY / NON-EMERGENCY:
Non-Emergency
DEPARTMENTAL CLEARANCES:
Legal and Planning Commission
FINANCIAL IMPACT:
□Operating □ Revenue □ Capital (X) Not applicable
Fiscal Year:
2018-2019 Current Year Future Years TOTALS
Line Item Budget
Encumbered /
Expended Amount
This item
BALANCE
Funding Detail:
Fund:N/A
Organization/Activity:N/A
Mission Element:N/A
Project #:N/A
Account:N/A
RECOMMENDATION:
Planning Commission and Staff Recommendation (June 26, 2019):
Approval of the change of zoning from the “CN-1” Neighborhood Commercial District to the “RS-
6” Single-Family 6 District.
Vote Results:
For: 8
Opposed: 0
Absent: 0
Abstained:0
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Presentation - Aerial Map
Planning Commission Final Report
Zoning Case No. 0519-03 Sergio and Magali Martinez. Ordinance rezoning
property at or near 2934 Highland Avenue from the “CN-1” Neighborhood
Commercial District to the “RS-6” Single-Family 6 District.
WHEREAS, the Planning Commission has forwarded to the City Council its final
report and recommendation regarding the application of Sergio and Magali Martinez
(“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, a public hearing was held on
Wednesday, June 26, 2019, during a meeting of the Planning Commission. The Planning
Commission recommended approval of the change of zoning from the “CN-1”
Neighborhood Commercial District to the “RS-6” Single-Family 6 District and on Tuesday,
August 20, 2019, 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 Sergio and Magali Martinez (“Owner”), the Unified
Development Code (“UDC”) of the City of Corpus Christi, Texas (“City”), is amended by
changing the zoning on a property described as being a total of 0.35 acres (15,040.51sf.)
tract of land, numbered Lot 21AR, Block 6, Montrose Park Addition, a map or plat
recorded in volume 68, page 304 of the Map Records Nueces County, Texas, for rezoning
purposes only, located on the east side intersection of Duncan Street and Highland
Avenue, (the “Property) from the “CN-1” Neighborhood Commercial District to the “RS-6”
Single-Family 6 District, (Zoning Map No. 047043), as shown in Exhibits “A” and “B”.
Exhibit A 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.
Page 2 of 5
SECTION 6. Publication shall be made in the City’s official publication as required by the
City’s Charter.
K:\DevelopmentSvcs\SHARED\ZONING CASES\2019\0519-03 Sergio and Magali Martinez \Council Documents\Ordinance_0519-03
Sergio and Magali Martinez.docx
Page 3 of 5
That the foregoing ordinance was read for the first time and passed to its second reading on this
the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this the _____
day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Page 4 of 5
Exhibit A
Page 5 of 5
Exhibit B
City Council Presentation
August 20, 2019
Zoning Case #0519-03
Sergio and Magali Martinez
Rezoning for a Property at
2934 Highland Avenue
2
Aerial Overview
Subject Property at
2934 Highland Avenue
3
N
4.62 Acre
Remainder
4
Zoning Pattern
5
Planning Commission and
Staff Recommendation
Approval of the “RS-6”
Single-Family 6 District
STAFF REPORT
Case No. 0519-03
INFOR No. 19ZN1011
Planning Commission Hearing Date: June 26, 2019 Applicant & Legal Description Owner: Sergio and Magali Martinez
Applicant: Magali Caballero
Location Address: 2934 Highland Avenue
Legal Description: Being a total of 0.35 acres (15,040.51sf.) tract of land,
numbered LOT 21AR BLOCK 6 MONTROSE PARK ADDITION, a map or plat
recorded in volume 68, page 304 of the Map Records Nueces County, Texas,
for rezoning purposes only, located on the east side intersection of Duncan
Street and Highland Avenue. Zoning Request From: CN-1" Neighborhood Commercial District
To: Tract: " “RS-6” Single-Family 6 District
Area: 0.35 acres
Purpose of Request: To allow for the construction of a Single-Family Home. Existing Zoning and Land Uses Existing Zoning District Existing
Land Use
Future
Land Use
Site “CN-1” " Neighborhood
Commercial Vacant Medium Density
Residential
North “RS-6” Single-Family 6 Medium Density
Residential
Medium Density
Residential
South ““CN-1” " Neighborhood
Commercial
Vacant, Low Density
Residential, and
Commercial
Medium Density
Single Family
Residential, and
Commercial
East “RS-6” Single-Family 6 Medium Density
Residential
Medium Density
Residential
West ““CN-1” " Neighborhood
Commercial
Medium Density
Residential and
Commercial
Medium Density
Single Family
Residential, and
Commercial ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries
of the Northwest Area Development Plan. The proposed rezoning to the “RS-6”
Single-Family 6 District is generally consistent with the adopted Comprehensive
Plan (Plan CC).
Map No.: 047043
Zoning Violations: None
Staff Report
Page 2
Transportation Transportation and Circulation: The subject property has approximately 142
feet of street frontage along Duncan Street which is designated as a
Local/Residential Street and approximately 128 feet of street frontage along
Highland Avenue which is designated as a “C1” Collector Street. According to
the Urban Transportation Plan, “C1” Collector Streets can convey a capacity
between 1,000 to 3,000 Average Daily Trips (ADT). Street R.O.W. Street
Urban
Transportation
Plan Type
Proposed
Section
Existing
Section
Traffic
Volume
Duncan
Street Local/Residential 50’ ROW
28’ paved
82’ ROW
63’ paved N/A
Highland
Avenue “C1” Collector Street 60’ ROW
40’ paved
52’ ROW
18’ paved N/A
Staff Summary:
Requested Zoning: The applicant is requesting a rezoning from “CN-1” Neighborhood
Commercial District to “RS-6” Single-Family 6 District to allow for the construction of a
Single-Family Home.
Development Plan: The subject property is 0.35 acres in size. The owner is proposing
a Single-Family Home.
Existing Land Uses & Zoning: The subject property is currently zoned“CN-1”
Neighborhood Commercial District, and vacant. There was a Single-Family Residential
building that was demolished and has remained undeveloped since 1979. The proposed
house will front Highland Avenue. To the north are properties zoned “RS-6” Single-Family
District. These properties are single-family residences facing Duncan Street and Sunrise
Avenue. To the south are vacant lots zoned CN-1” Neighborhood Commercial mixed with
minimal commercial District to the south-east. To the east are single-family residences
zoned “RS-6” Single-Family 6 District Low Density. To the west are commercial properties
inter-mixed with residential and a vacant lot.
AICUZ: The subject property is not located in one of the Navy’s Air Installation
Compatibility Use Zones (AICUZ).
Plat Status: The property is platted.
Utilities:
Water: 8-inch ACP line located along Duncan Street.
Wastewater: 8-inch VCP line located along Duncan Street.
Gas: 7-inch Service Line located along Duncan Street.
Storm Water: Inlets along Duncan Street and Highland Avenue.
Plan CC & Area Development Plan Consistency: The subject property is located within
the boundaries of the Northwest Area Development Plan that is planned for low density
Staff Report
Page 3
residential uses. The proposed rezoning to the “RS-6” Single-Family 6 District is generally
consistent with the adopted Comprehensive Plan (Plan CC. The following policies should
be considered:
• Support programs to encourage infill development and rehabilitate housing stock
in established neighborhoods (Housing and Neighborhoods Policy Statement 7).
• Encourage orderly growth of new residential, commercial, and industrial areas
(Future Land Use, Zoning, and Urban Design Policy Statement 1).
• Promote a balanced mix of land uses to accommodate continuous growth and
promote the proper location of land uses based on compatibility, locational needs,
and characteristics of each use (Future Land Use, Zoning, and Urban Design
Policy Statement 1).
• Promote compact and walkable mixed-use urban villages that concentrate retail
and services within walking distance of neighborhood residences and where they
could support improved public transportation service, such as expected major bus
stations and future stops for bus rapid transit, creating “transit-ready” locations
(Future Land Use, Zoning, and Urban Design Policy Statement 2).
• Encourage residential infill development on vacant lots within or adjacent to
existing neighborhoods (Future Land Use, Zoning, and Urban Design Policy
Statement 3).
• Encourage convenient access from medium-density residential development to
arterial roads (Future Land Use, Zoning, and Urban Design Policy Statement 3).
Department Comments:
• The proposed rezoning is generally consistent with the adopted Comprehensive
Plan (Plan CC).
• The proposed rezoning is compatible with neighboring properties and with the
general character of the surrounding area. This rezoning does not have a negative
impact upon the surrounding neighborhood.
• Existing commercial properties to the north, south, and west are zoned “CN-1”
Neighborhood Commercial District and “CG-2” General Commercial District.
• The subject property is at the intersection of Duncan Street and Highland Avenue
where there are a mix of vacant lots to the south and commercial to the east on
Highland Avenue. The area shows a mix use of residential and commercial to the
south.
•
Staff Recommendation:
Approval of the change of zoning from “CN-1” Neighborhood Commercial to “RS-
6” Single-Family District.
Staff Report
Page 4
Public Notification Number of Notices Mailed – 52 within 200-foot notification area
6 outside notification area
As of July 26, 2019:
In Favor – 1 inside notification area
– 0 outside notification area
In Opposition – 0 inside notification area
– 0 outside notification area
Totaling 0.242% of the land within the 200-foot notification area in favor.
Attachments:
A. Location Map (Existing Zoning & Notice Area)
B. Public Comments Received (if any)
K:\DevelopmentSvcs\SHARED\ZONING CASES\2019\0519-03 Sergio and Margali Martinez\PC Documents\Staff Report_0519-03 Sergio& Margali
Martinez.docx
Staff Report
Page 5
Staff Report
Page 6
DATE:July 30, 2019
TO:Peter Zanoni, City Manager
FROM:Mike Markle, Chief of Police
mikema@cctexas.com
886-2604
CAPTION:
Ordinance authorizing acceptance of $171,000 grant from Texas Department of Transportation
for the 2020 Comprehensive Selective Traffic Enforcement Project to increase traffic
enforcement with a City match of $49,553.37 from the FY 2020 General Fund.
PURPOSE:
Accept the grant and appropriate the funds.
BACKGROUND AND FINDINGS:
The Texas Department of Transportation (TxDOT) provides grant funding to cities in Texas for
the Selective Traffic Enforcement Project (STEP). The STEP program reimburses cities for
overtime activities by local law enforcement to reduce crashes by focusing enforcement efforts
on high crash areas.
TxDOT is providing the City of Corpus Christi Police Department with a grant in the amount of
$171,000 to continue the STEP program in FY 2020 and the City is matching the grant with
$49,553.37 from the Police General Fund for a total of $220,553.37. The Police Department has
received funding through the STEP program for over 20 years.
The grant will be used to provide overtime funding to police officers to enforce DWIs, speed
violations, and distracted driving across the City with varied days of the week and hours of
operation. The grant is for a one year period beginning on October 1, 2019 and ending September
30, 2020.
ALTERNATIVES:
None
OTHER CONSIDERATIONS:
None
Accepting and appropriating funds in the FY 2020 Budget for the 2020 Selective Traffic
Enforcement Program grant from the Texas Department of Transportation (TXDOT)
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting of August 20, 2019
Second Reading Ordinance for the City Council Meeting of August 27, 2019
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: 2018-
2019
Project to Date
Expenditures
(CIP only)Current Year Future Years TOTALS
Line Item Budget
Encumbered /
Expended Amount
This item 0 $49,553.37 $49,553.37
BALANCE
Funding Detail:
Fund:1020 Police General Fund
Organization/Activity:
Mission Element:151 Respond to Calls for law enforcement
Project # (CIP Only):
Account:510200 Overtime
511000 Retirement
520050 Fuel and Lubricants
Comments:
RECOMMENDATION:
Staff recommends accepting the grant and appropriating the funds.
LIST OF SUPPORTING DOCUMENTS:
Grant award contract
1
Ordinance authorizing acceptance of $171,000 grant from Texas
Department of Transportation for 2020 Comprehensive Selective
Traffic Enforcement Project to increase traffic enforcement with a city
match of $49,553.37; and appropriating $171,000 in the Police Grants
Fund
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. The City Manager or designee is authorized to execute all documents
necessary to accept a grant from the Texas Department of Transportation (TXDOT) in
the amount of $171,000 for the 2020 Comprehensive Selective Traffic Enforcement
Project (STEP) within the Police Department, for Driving While Intoxicated (DWI), speed
enforcement, and distracted driving overtime, with a city match of $49,553.37, for a total
project cost of $220,553.37.
SECTION 2. That $171,000 grant is appropriated in the No. 1061 Police Grants Fund to
continue funding overtime for DWI, speed, and distracted driving enforcement.
2
That the foregoing ordinance was read for the first time and passed to its second reading on this
the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this the _____
day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca L. Huerta Joe McComb
City Secretary Mayor
DATE:August 20, 2019
TO:Peter Zanoni, City Manager
FROM:Mike Markle, Chief of Police
mikema@cctexas.com
361-886-2603
Peter Collins, Acting CIO
Peterc@cctexas.com
361-826-3735
Kim Baker, Director of Contracts and Procurement
Kimb2@cctexas.com
(361) 826-3169
CAPTION:
Ordinance authorizing the purchase of 180 Police vehicle video recording systems and a
five-year service agreement for installation and maintenance from Turn-Key Mobile, Inc.
of Jefferson City, Missouri, via Texas Department of Information Resources Cooperative
for a total amount not to exceed $1,541,113.15; appropriating $1,541,113.15 from the
unreserved fund balance of the Liability and Employee Benefits – General Liability Fund;
transferring to the IT Fund; and amending the FY 2018-2019 operating budget adopted
by Ordinance No. 031548; funded through the Liability and Employee Benefits – General
Liability Fund.
PURPOSE:
To approve the purchase of 180 Panasonic vehicle video recording systems and a five-
year service agreement for installation and maintenance, which includes custom and
system configuration, software and firmware updates, training and warranty of equipment.
BACKGROUND AND FINDINGS:
The current Coban Technologies Patrol in-car camera video system was purchased in
September of 2012. 164 Patrol in-car video cameras had an end of life of five years. We
are now at the end of our seventh year, two years past the end of life. The Police
Department is currently experiencing a high failure rate which warrants the in-car video
Purchase of Patrol Car Video Recording Systems for Police
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 20, 2019
Second Reading Ordinance for the City Council Meeting August 27, 2019
camera system be replaced. Panasonic’s patrol in-car video camera systems are fully
compatible with the Panasonic Patrol body cameras purchased in April 2019.
The Panasonic’s patrol car video camera system records traffic stops or other activities
that a Patrol Officer may encounter in their day to day duties. All videos are automatically
uploaded to the Panasonic’s Unified Digital Evidence Management System which
enables the video to be retrieved and viewed at a later time while preserving the chain of
custody for evidence tracking.
The purchase is through the Texas Department of Information Resources (DIR)
Cooperative. This saves the City significant costs by managing only one digital evidence
management platform. The purchase includes complete installation and training of
personnel as well as de-installation of old Coban equipment.
Funds to purchase 180 Panasonic Arbitrator video recording systems and equipment for
8 criminal investigation interview rooms from Turn-Key Mobile, Inc. are being funded by
a transfer of funds from the Unreserved Fund Balance in the Liability and Employee
Benefits-General Liability Fund No. 5611 to the IT Fund No. 5210 in the amount of
$1,541,113.15.
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:
Police Department
Information Technology
FINANCIAL IMPACT:
X Operating □ Revenue □ Capital □Not applicable
Fiscal Year:
2018-2019 Current Year Future Years TOTALS
Line Item Budget $5,525,061.00*0.00 $5,525,061.00
Encumbered /
Expended Amount $0.00 $0.00 $0.00
*This item $1,541,113.15 0.00 $1,541,113.15
BALANCE $3,983,947.85 0.00 $3,983,947.85
*This is the appropriable fund balance.
Funding Detail:
Fund:5611 – Liability & Employee Benefits-General Liability Fund
Organization/Activity:n/a
Mission Element:241 – Provide & Support Technology Infrastructure
Project # (CIP Only): n/a
Account:251850 – account number for the unreserved fund balance
RECOMMENDATION:
Staff recommends approval of the ordinance as presented.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Service Agreement 2460
Price Sheet
Ordinance authorizing the purchase of 180 Police vehicle video recording
systems and a five-year service agreement for installation and maintenance from
Turn-Key Mobile, Inc. of Jefferson City, Missouri, via Texas Department of
Information Resources Cooperative for a total amount not to exceed
$1,541,113.15; appropriating $1,541,113.15 from the unreserved fund balance of
the Liability and Employee Benefits – General Liability Fund; transferring to the IT
Fund; and amending the FY 2018-2019 operating budget adopted by Ordinance
No. 031548; funded through the Liability and Employee Benefits – General
Liability Fund.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1.That funds in the amount of $1,541,113.15 are appropriated from the
Liability and Employee Benefits-General Liability Fund No. 5611 and appropriated in the
IT Fund No. 5210 for the purchase 180 vehicle video recording systems from Turn-Key
Mobile, Inc.
SECTION 2.That the FY2018-19 operating budget adopted by Ordinance No. 031548 is
amended by increasing expenditures by $1,541,113.15.
SECTION 3.That the City Manager, or designee, is authorized to execute all documents
necessary to purchase 180 vehicle video recording systems and a five-year service
agreement for installation and maintenance from Turn-Key Mobile, Inc., of Jefferson City,
Missouri, based on the cooperative purchasing agreement with Texas Department of
Information Resources (DIR) Cooperative, for a total amount not to exceed
$1,541,113.15.
That the foregoing ordinance was read for the first time and passed to its second
reading on this the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this
the _____ day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Manufacturer Mfr. Part #Description MSRP % off MSRP Discount With Discount QUOTE QTY TOTAL
PANASONIC
ARB-KIT-HD
ARBITRATOR MK3 HD CAMERA 256GB
ACCS SSD WRLS 1 INTEGRATED
OPTION
$6,250.00
11%$687.50 $5,562.50 $4,060.00 173 $702,380.00
PANASONIC ARB-KIT-HDNOCAM ARBITRATOR MK3 256 GB SSD WL 1
ACCS INTEGRATED OPTION $4,559.00 11%$501.49 $4,057.51 $3,090.00 3 $9,270.00
PANASONIC ARB-256SSD 256GB 2.5IN 7MM SSD FOR 2.5
ARBITRATOR ARB MK3 $570.00 11%$62.70 $507.30 $415.00 180 $74,700.00
PANASONIC ARB-M90 900 MHZ WIRELESS MICROPHONE
ACCS FULL KIT $690.00 11%$75.90 $614.10 $495.00 352 $174,240.00
PANASONIC
ARB-SOFICVOPBUN5
1-5YR IN-CAR VIDEO UEMS1 ON LICS
PREM STOR BNDL PER DEV W/ DEV
LICS
Product stocked by manufacturer.
Delivery times vary.
$645.00
2%$12.90 $632.10 $616.00 176 $108,416.00
PANASONIC TGS-3DP G-FORCE SENSOR FOR ARBITRATOR
DOCK VEHICLE $299.00 11%$32.89 $266.11 $238.50 176 $41,976.00
PANASONIC ARB-WV-VC31-C BACK SEAT CAMERA INCLUDES
PERP CABLE $515.00 11%$56.65 $458.35 $354.00 167 $59,118.00
PANASONIC ARB-APWWQS22-RP-BL DOUBLE-WIFI ANTENNA ACCS $165.00 11%$18.15 $146.85 $118.00 176 $20,768.00
PANASONIC ARB-BWC3CTB COMMON TRIGGER BOX CPNT $320.00 11%$35.20 $284.80 $236.00 5 $1,180.00
PANASONIC
ARB-BWC3PAIRDCK BWC MK3 IN-VEHICLE PAIRING
DOCKCPNT W/WIRING HARNESS/M $270.00
11%$29.70 $240.30 $195.00 5 $975.00
PANASONIC ARB-BWCBLANT-BLB LOW PROFILE BLADE TYPE ANTENNA
ACCS $85.00 11%$9.35 $75.65 $75.65 5 $378.25
PANASONIC ARB-SSDREAD MK3 SSD READER EXT $263.00 11%$28.93 $234.07 $210.00 5 $1,050.00
PANASONIC
CF-SVCARB2ICC1
ARBITRATOR 360 CAR
INSTALLATIONELEC TRAINING TRAIN
THE INSTALLERS
Product stocked by manufacturer.
Delivery times vary.
$2,780.00
2%$55.60 $2,724.40 $2,724.00 1 $2,724.00
PANASONIC
ARB-SOFCONSULHALF
ONE HALF DAY OF CONSULTING
SVCS
Product stocked by manufacturer.
Delivery times vary.
$1,300.00
2%$26.00 $1,274.00 $1,150.00 1 $1,150.00
PANASONIC
ARB-SOFCONSULT
ONE DAY OF CONSULTING SVCS
Product stocked by manufacturer.
Delivery times vary.
$2,500.00
2%$50.00 $2,450.00 $2,200.00 6 $13,200.00
TKM Misc Sales $30,000.00 1 $30,000.00
TKM Service - Setup ARB $1,750.00 14 $24,500.00
TKM Service - ARB IVC $6,300.00 5 $31,500.00
TKM Installation - Contracted $627.00 155 $97,185.00
TKM Installation - Contracted $591.00 13 $7,683.00
TKM Installation - Contracted $780.00 3 $2,340.00
TKM Installation - Contracted $300.00 5 $1,500.00
TKM De-Install $240.00 171 $41,040.00
PANASONIC
ARB-KIT-HDVUE
MK3 ARB LIND DISTRIBUTION CEN
ACCS NEED TO BE PRE-APPROVED
BY VENDOR
$4,700.00
11%$517.00 $4,183.00 $3,305.00 8 $26,440.00
PANASONIC
ARB-SOFICVOPBUN5
1-5YR IN-CAR VIDEO UEMS1 ON LICS
PREM STOR BNDL PER DEV W/ DEV
LICS
Product stocked by manufacturer.
Delivery times vary.
$645.00
2%$12.90 $632.10 $616.00 8 $4,928.00
PANASONIC WV-S2231L Camera 1080P H.265 Indoor Vandal
Dome w/IR LED $1,055.00 38%$400.90 $654.10 $597.00 9 $5,373.00
TKM LE-047 $258.00 1 $258.00
TKM Misc Sales $50.00 1 $50.00
TKM AZ-LEDESW12VL $0.00 8 $0.00
TKM Service - Setup ARB $2,000.00 4 $8,000.00
PANASONIC
ARB-KIT-HD
ARBITRATOR MK3 HD CAMERA 256GB
ACCS SSD WRLS 1 INTEGRATED
OPTION
$6,250.00
11%$687.50 $5,562.50 $4,060.00 6 $24,360.00
PANASONIC ARB-256SSD 256GB 2.5IN 7MM SSD FOR 2.5
ARBITRATOR ARB MK3 $570.00 11%$62.70 $507.30 $415.00 6 $2,490.00
PANASONIC ARB-M90 900 MHZ WIRELESS MICROPHONE
ACCS FULL KIT $690.00 11%$75.90 $614.10 $495.00 6 $2,970.00
PANASONIC
ARB-SOFICVOPBUN5
1-5YR IN-CAR VIDEO UEMS1 ON LICS
PREM STOR BNDL PER DEV W/ DEV
LICS
Product stocked by manufacturer.
Delivery times vary.
$645.00
2%$12.90 $632.10 $616.00 6 $3,696.00
PANASONIC TGS-3DP G-FORCE SENSOR FOR ARBITRATOR
DOCK VEHICLE $299.00 11%$32.89 $266.11 $238.50 6 $1,431.00
PANASONIC
ARB-WV-VC31-C BACK SEAT CAMERA INCLUDES
PERP CABLE $515.00
11%$56.65 $458.35 $354.00 6 $2,124.00
PANASONIC
ARB-APWWQS22-RP-BL DOUBLE-WIFI ANTENNA ACCS $165.00
11%$18.15 $146.85 $118.00 6 $708.00
PANASONIC ARB-BWC3CTB COMMON TRIGGER BOX CPNT $320.00 11%$35.20 $284.80 $236.00 6 $1,416.00
PANASONIC
ARB-BWC3PAIRDCK BWC MK3 IN-VEHICLE PAIRING
DOCKCPNT W/WIRING HARNESS/M $270.00
11%$29.70 $240.30 $195.00 6 $1,170.00
PANASONIC ARB-BWCBLANT-BLB LOW PROFILE BLADE TYPE ANTENNA
ACCS $85.00 11%$9.35 $75.65 $75.65 6 $453.90
PANASONIC arb-bwc3-8bay MK3 BWC 8 Bay Dock $1,950.00 11%$214.50 $1,735.50 $1,486.00 2 $2,972.00
TKM TKM-PM $5,000.00 1 $5,000.00
$1,541,113.15
PRICE SHEET
DIR Contract #DIR-TSO-4025 Jefferson City, Missouri
5-Year Service Agreement
Patrol Car Video Recording
Systems for Police
CITY OF CORPUS CHRISTI
PURCHASING DIVISION
SR. BUYER: JOHN ELIZONDO
Turn-Key Mobile, Inc.
SERVICE AGREEMENT NO. 2460
Patrol Car Video Recording Systems for Police
THIS Patrol Car Video Recording Systems for Police Agreement ("Agreement") is
entered into by and between the City of Corpus Christi, a Texas home-rule municipal
corporation ("City") and Turn-Key Mobile, Inc. ("Contractor"), effective upon
execution by the City Manager or the City Manager's designee ("City Manager").
WHEREAS, Contractor has bid to provide Patrol Car Video Recording Systems for
Police in response to Request for Bid/Proposal No. 2460 ("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 l 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 Patrol Car Video Recording Systems for Police
("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 five years, with performance commencing upon the
date of issuance of a notice to proceed from the Contract Administrator or the
Contracts and Procurement Department. The parties may mutually extend the
term of this Agreement for up to zero additional five-year periods ("Option
Period(s)"), provided, the parties do so by written amendment prior to the
expiration of the original term or the then-current Option Period. The City's
extension authorization must be executed by the City Manager or designee.
3.Compensation and Payment. This Agreement is for an amount not to exceed
$1,541, 113.15, 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. Contractor shall
invoice no more frequently than once per month. All pricing must be in
accordance with the attached Bid/Pricing Schedule, as shown in Attachment 8,
the content of which is incorporated by reference into this Agreement as if fully
set out here in its entirety. Any amount not expended during the initial term or any
option period may, at the City's discretion, be allocated for use in the next option
period.
Invoices will be mailed to the following address with a copy provided to the
Contract Administrator:
Service Agreement Standard Form
Approved as to Legal Form July 11, 2019
Page 1 of 7
City of Corpus Christi Attn: Accounts Payable P .0. Box 9277 Corpus Christi, Texas 78469-9277
4.Contract Administrator. The Contract Administrator designated by the City isresponsible for approval of all phases of performance and operations under thisAgreement, including deductions for non-performance and authorizations forpayment. The City's Contract Administrator for this Agreement is as follows:
Name: Greg Johnson Information Technology Department Phone: 361-826-8354 Email: Gregj@cctexas.com
5.Insurance; Bonds.
(A)Before performance can begin under this Agreement, the Contractor mustdeliver a certificate of insurance ("COi"), as proof of the required insurancecoverages, 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 intentnot 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 ofthe City Manager's written request. Insurance requirements are as stated inAttachment C, the content of which is incorporated by reference into thisAgreement as if fully set out here in its entirety.
(B)In the event that a payment bond, a performance bond, or both. arerequired of the Contractor to be provided to the City under this Agreement beforeperformance can commence, the terms, conditions, and amounts required in thebonds and appropriate surety information are as included in the RFB/RFP or asmay be added to Attachment C, and such content is incorporated here in thisAgreement by reference as if each bond's terms, conditions, and amounts werefully set out here in its entirety.
6.Purchase Release Order. For multiple-release purchases of Services to beprovided by the Contractor over a period of time, the City will exercise its right tospecify time, place and quantity of Services to be delivered in the followingmanner: any City department or division may send to Contractor a purchaserelease order signed by an authorized agent of the department or division. Thepurchase release order must refer to this Agreement, and Services will not berendered until the Contractor receives the signed purchase release order.
Service Agreement Standard Form Approved as to Legal Form July l 1, 2019 Page 2 of 7
AGENDA MEMORANDUM
First Reading for the City Council Meeting of August 20, 2019
Second Reading for the City Council Meeting of August 27, 2019
______________________________________________________________________
DATE:August 2, 2019
TO:Peter Zanoni, City Manager
THRU:Constance P. Sanchez, Interim Assistant City Manager
FROM:Alma Casas, Interim Director of Financial Services
AlmaC@cctexas.com
(361) 826-3610
CAPTION:
Ordinance authorizing the issuance of “City of Corpus Christi, Texas Utility System Junior Lien
Revenue Improvement and Refunding Bonds, Series 2019” for Water and Wastewater Utility
improvements in an amount not to exceed $113,000,000 and authorizing other matters incident
and related thereto.
PURPOSE:
The City plans on issuing $50,000,000 of Utility System Junior Lien Revenue Improvement
Bonds and refunding $58,680,000 of Build America Bonds issued on July 1, 2010 for savings.
The amount of bond issuance included in the ordinance of $113,000,000 includes estimated
costs of issuance and accounts for any fluctuations in the bond market at the time of pricing.
The actual bond sale cannot exceed this amount but will more than likely be substantially less.
BACKGROUND AND FINDINGS:
On September 11, 2018, the City Council approved a $50,000,000 reimbursement resolution to
award contracts for water and wastewater projects included in the Fiscal Year 2019 Capital
Improvement Plan (CIP) prior to the issuance of bonds. This agenda item will replenish the City
funds used for these projects with the issuance of Utility System Revenue Bonds.
In July 2010, the City issued $60,625,000 of Utility System Revenue Improvement Bonds,
Taxable Series 2010 (Direct Subsidy – Build America Bonds). Authorized under the American
Recovery and Reinvestment Act of 2009, this Act enabled municipalities to issue taxable debt
and receive a federal subsidy equal to 35% of their interest expense for Build America Bonds
issued prior to January 1, 2011. The initial program was structured in a way for the City to file a
request with the federal government/ Internal Revenue Service for its 35% subsidy
Authorization for the Issuance of Utility System Revenue Improvement
and Refunding Bonds
approximately 45 days before each debt payment is made. However, since the issuance of the
bonds, government sequestration has resulted in a reduction of 8.7% of the government subsidy
from 35% to 32.8%. These bonds are callable on July 15, 2020, and under the current tax laws,
the City is able to advance refund them prior to the call date because they are taxable bonds.
We will be refunding $58,680,000 into tax exempt Utility System Revenue Improvement Bonds
for an estimated net present value savings of 5.2% or $3,017,442. This is projected to be an
annual savings for the City’s Utility System of approximately $150,000 per year.
Because of the fluctuating conditions in the municipal bond market and to ensure that all legal
documents are executed on a timely basis, our financial advisor has recommended that the City
Council delegate to the City Manager, Assistant City Managers, and the Director of Financial
Services - including any person serving in any of the foregoing capacities on an interim or non-
permanent basis (the “Delegated Officials”) the authority to effect the sale of the bonds subject
to the following parameters: (1) the principal amount in total of all bonds sold may not exceed
$113,000,000; (2) the refunding will result in a net present value savings of at least 3.00%; and
(3) the true interest rate shall not exceed 6% per year. The City's bond counsel has confirmed
that the City can delegate the sale of the bonds to the Delegated Officials in the manner outlined
above pursuant to the authority contained in Chapter 1371, as amended, Texas Government
Code.
ALTERNATIVES:
n/a
OTHER CONSIDERATIONS:
n/a
CONFORMITY TO CITY POLICY:
This item conforms to City policy.
EMERGENCY / NON-EMERGENCY:
Non-emergency
DEPARTMENTAL CLEARANCES:
Financial Services Department
Bond Counsel
City Attorney’s Office
FINANCIAL IMPACT:
□ Not Applicable □ Operating Expense X Revenue □ CIP
Project to Date Exp.Current Future
(CIP Only)Year Years TOTALS
Budget - - - -
Encumbered/Expended
amount of (date) - - - -
This item -113,000,000$ -113,000,000$
BALANCE -113,000,000$ -113,000,000$
FUND(S): CIP Fund (number to be determined after bond sale)
COMMENTS:
None.
RECOMMENDATION:
Staff recommends approval of the ordinance as presented.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
74839135.3
DRAFT 7/30/2019
ORDINANCE NO. __________
ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF
CORPUS CHRISTI, TEXAS UTILITY SYSTEM JUNIOR LIEN
REVENUE IMPROVEMENT AND REFUNDING BONDS, SERIES 2019”
IN AN AMOUNT NOT TO EXCEED $113,000,000; 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 AND DISTRIBUTION
OF AN OFFICIAL STATEMENT PERTAINING
THERETO; AUTHORIZING THE EXECUTION OF A PAYING
AGENT/REGISTRAR AGREEMENT, AN ESCROW AGREEMENT,
AND A PURCHASE CONTRACT; 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 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
(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
(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
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 (hereinafter defined) from time to time outstanding; and
74839135.3 -2-
WHEREAS, the City Council has heretofore issued, and there are currently outstanding,
obligations supported by a lien on and pledge of the Net Revenues of the System that are inferior
to the lien thereon and pledge thereof securing the Priority Bonds and the Junior Lien Obligations
(the Previously Issued Subordinate 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 $58,680,000, 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 and 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 and 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, ____________________________, _______________, 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 and 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 saving of approximately $__________ (__________%) to the City and a gross savings of
$__________, including the cash contribution of $0.00;
WHEREAS, the revenue and refunding bonds hereinafter authorized are to be issued and
delivered pursuant to the laws of the State of Texas, including the Act (defined herein), and the
terms of this Ordinance (hereinafter defined), for the purposes set forth in this Ordinance; and now
therefore,
74839135.3 -3-
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1: Authorization - Designation - Principal Amount - Purpose. Revenue and
refunding bonds of the City shall be and are hereby authorized to be issued in the aggregate
principal amount of _________________________ THOUSAND AND NO/100 DOLLARS
($__________), to be designated and bear the title of CITY OF CORPUS CHRISTI, TEXAS
UTILITY SYSTEM JUNIOR LIEN REVENUE IMPROVEMENT AND REFUNDING BONDS,
SERIES 2019 (the Bonds), pursuant to this ordinance adopted by the City Council (the Ordinance)
for the purpose of (i) designing, planning, building, improving, extending, enlarging, and repairing
the System, (ii) discharging and making final payment of the Refunded Obligations, and (iii)
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 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, and the identification of an
underwriter or underwriting syndicate for 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 II. The Bonds shall be issued in the principal amount not to exceed
$113,000,000; the maximum maturity of the Bonds will be July 15, 2050, 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. Lastly, 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 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 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, the Bonds have been rated by a nationally recognized rating agency for
municipal securities in one of the four highest rating categories for long term obligations, as
required by Chapter 1371. Upon execution of the Approval Certificate, Bond Counsel is
authorized to complete this Ordinance to reflect such final terms.
74839135.3 -4-
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 ________, 2019 (the Dated Date); shall be in denominations of $5,000 or any
integral multiple thereof, shall be lettered “R-” and numbered consecutively from One (1) upward;
and principal shall become due and payable on July 15 in each of the years and in principal amounts
(the Stated Maturities) and bear interest on the unpaid principal amounts from the Dated Date, or
the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or duly
provided for, to the earlier of redemption or Stated Maturity, at the rates per annum in accordance
with the following schedule:
Years of Stated Maturity
(July 15)
Principal
Amounts ($)
Interest
Rates (%)
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
74839135.3 -5-
Years of Stated Maturity
(July 15)
Principal
Amounts ($)
Interest
Rates (%)
2049
2050
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 (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 January 15, 2020, while the Bonds are Outstanding.
The selection and appointment of ______________________, _____________, Texas, to
serve as the initial Paying Agent/Registrar (the Paying Agent/Registrar) for the Bonds is hereby
approved and confirmed, and the City agrees and covenants to cause to be kept and maintained at
the corporate trust office of the Paying Agent/Registrar books and records (the Security Register)
for the registration, payment, and transfer of the Bonds, all as provided herein, in accordance with
the terms and provisions of a Paying Agent/Registrar Agreement, attached, in substantially final
form, as Exhibit 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
74839135.3 -6-
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.
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___
Year
Principal
Amount ($)
*
*Payable at Stated Maturity.
74839135.3 -7-
The principal amount of a Term Bond required to be redeemed pursuant to the operation
of such mandatory redemption provisions shall be reduced, at the option of the City, by the
principal amount of any Term Bonds of such Stated Maturity which, at least fifty (50) days prior
to the mandatory redemption date (i) shall have been defeased or acquired by the City and
delivered to the Paying Agent/Registrar for cancellation, (ii) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the City with money in the Bond Fund,
or (iii) 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. 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
74839135.3 -8-
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 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.
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, 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
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.
74839135.3 -9-
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 Bond 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.
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
74839135.3 -10-
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.
[The remainder of this page intentionally left blank.]
74839135.3 -11-
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 IMPROVEMENT AND REFUNDING BONDS,
SERIES 2019
Dated Date: Interest Rate: Stated Maturity: CUSIP NO:
________, 2019
REGISTERED OWNER: _________________________________________________________
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 (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 January 15,
2020.
Principal and premium, if any, of the Bond shall be payable to the Registered Owner hereof
(the Holder) upon presentation and surrender, at the corporate trust office of the Paying
Agent/Registrar executing the registration certificate appearing hereon or a successor thereof.
Interest shall be payable to the Holder of this Bond (or one or more Predecessor Bonds, as defined
in the Ordinance hereinafter referenced) whose name appears on the Security Register maintained
by the Paying Agent/Registrar at the close of business on the Record Date, which is the last
business day of the month next preceding each Interest Payment Date. All payments of principal
of and interest on this Bond shall be in any coin or currency of the United States of America which
at the time of payment is legal tender for the payment of public and private debts. Interest shall
be paid by the Paying Agent/Registrar by check sent on the appropriate date of payment by United
States Mail, first-class postage prepaid, to the Holder hereof at the address appearing in the
Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by
the Holder hereof at the Holder’s risk and expense.
This Bond is one of the series specified in its title issued in the aggregate principal amount
of $__________ (the Bonds) pursuant to an ordinance adopted by the governing body of the City
74839135.3 -12-
(the Ordinance), for the purpose of (i) designing, planning, building, improving, extending,
enlarging, and repairing the System, (ii) discharging and making final payment of the Refunded
Obligations, and (iii) paying the costs of issuance related thereto, all in conformity with the laws
of the State of Texas, particularly the City’s Home Rule Charter and the Act, and the Ordinance.
The Bonds shall be payable from and equally and ratably secured solely by a lien on and pledge
of the Junior Lien Pledged Revenues, which includes a lien on and pledge of Net Revenues that is
junior and inferior to the lien thereon and pledge thereof securing the repayment of the Priority
Bonds, but senior and superior to the lien thereon and pledge thereof securing the repayment of
the Subordinate Lien Obligations and the Inferior Lien Obligations.
The Bonds stated to mature on July 15, 20___ are referred to herein as the “Term Bonds”.
The Term Bonds are subject to mandatory sinking fund redemption prior to their stated maturities
from money required to be deposited in the Bond Fund for such purpose and shall be redeemed in
part, by lot or other customary method, at the principal amount thereof plus accrued interest to the
date of redemption in the following principal amounts on July 15 in each of the years as set forth
below:
Term Bonds
Stated to Mature
on July 15, 20___
Year
Principal
Amount ($)
*
*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 (i) shall have been defeased or acquired by the City and
delivered to the Paying Agent/Registrar for cancellation, (ii) shall have been purchased and
canceled by the Paying Agent/Registrar at the request of the City with money in the Bond Fund,
or (iii) shall have been redeemed pursuant to the optional redemption provisions set forth below
and not theretofore credited against a mandatory redemption requirement.
The Bonds stated to mature on and after July 15, 20___ may be redeemed prior to their
Stated Maturities, at the option of the City, on July 15, 20___ or on any date, in whole or in part
in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity
selected at random and by lot by the Paying Agent/Registrar) at the redemption price of par,
together with accrued interest to the date of redemption, and upon thirty (30) days prior written
notice being given by United States mail, first-class postage prepaid, to Holders of the Bonds to
be redeemed, and subject to the terms and provisions relating thereto contained in the Ordinance.
If this Bond is subject to redemption prior to Stated Maturity and is in a denomination in excess
of $5,000, portions of the principal sum hereof in installments of $5,000 or any integral multiple
thereof may be redeemed, and, if less than all of the principal sum hereof is to be redeemed, there
74839135.3 -13-
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 combined utility systems (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, Additional
Junior Lien Obligations, Additional 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, Additional Junior Lien Obligations,
Additional Subordinate Lien Obligations, and 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
74839135.3 -14-
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.
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74839135.3 -15-
IN WITNESS WHEREOF, this Bond has been signed with the imprinted or lithographed
facsimile signature of the Mayor of the City, attested by the imprinted or lithographed facsimile
signature of the City Secretary, and the official seal of the City has been duly affixed to, printed,
lithographed or impressed on this Bond.
CITY OF CORPUS CHRISTI, TEXAS
__________________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(SEAL)
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74839135.3 -16-
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)
* Note 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:
___________________________________
______________________________,
_____________, Texas, as Paying
Agent/Registrar
By: _______________________________
Authorized Signature
* Note to Printer: to appear on printed Bonds
E. Form of Assignment.
74839135.3 -17-
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:
____________________________________
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74839135.3 -18-
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:
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
Stated Maturity
Principal
Amounts ($)
Interest
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 (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 January 15, 2020.
Principal of this Bond shall be payable to the Registered Owner hereof (the Holder), upon
its presentation and surrender, at the corporate trust office of ____________________
______________, _____________, Texas (the Paying Agent/Registrar). Interest shall be payable
to the Holder of this Bond whose name appears on the Security Register maintained by the Paying
Agent/Registrar at the close of business on the Record Date, which is the last business day of the
month next preceding each interest payment date. All payments of principal of and interest on this
Bond shall be in any coin or currency of the United States of America which at the time of payment
is legal tender for the payment of public and private debts. Interest shall be paid by the Paying
Agent/Registrar by check sent on or prior to the appropriate date of payment by United States mail,
first-class postage prepaid, to the Holder hereof at the address appearing in the Security Register
or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk
and expense of, the Holder hereof.
[END OF FORMS]
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.
74839135.3 -19-
SECTION 9: Definitions. For all purposes of this Ordinance, 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 Additional Subordinate Lien Obligations shall mean (i) any bonds, notes,
warrants, or any similar obligations hereafter issued by the City that are payable wholly or in part
from and equally and ratably secured by a lien and pledge of the Net Revenues, such 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.
E. 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.
F. The term Authorized Official shall mean the City Manager of the City, each
Assistant City Manager of the City, and the City’s Director of Financial Services (which shall
74839135.3 -20-
include any person serving in any of the foregoing capacities on an interim or non-permanent
basis).
G. 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.
H. The term Bonds shall mean the $__________ “CITY OF CORPUS CHRISTI,
TEXAS UTILITY SYSTEM JUNIOR LIEN REVENUE IMPROVEMENT AND REFUNDING
BONDS, SERIES 2019”, dated ________, 2019, authorized by this Ordinance.
I. The term Bond Fund shall mean the special Fund or account created and established
by the provisions of Section 13 of this Ordinance.
J. 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.
K. The term Capital Improvements shall mean any capital extensions, improvements
and betterments to the System other than Capital Additions.
L. The term City shall mean the City of Corpus Christi, Texas and, where appropriate,
the City Council of the City.
M. The term Closing Date shall mean the date of physical delivery of the Initial Bond
in exchange for the payment in full by the Purchasers.
N. 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.
O. 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.
74839135.3 -21-
P. 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.
Q. 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 (except indebtedness not 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 (i) 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 (ii)
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.
R. 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
74839135.3 -22-
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.
S. The term Depository shall mean an official depository bank of the City.
T. 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.
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 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.
74839135.3 -23-
Y. 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 is or 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.
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 January 15, 2020, 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 the Subordinate Lien Obligations and the Inferior Lien Obligations, as determined
by the City Council in accordance with applicable law.
BB. The term Junior Lien Pledged Revenues shall mean (i) the Net Revenues that
remain after payment of all amounts, and funding of all funds, relating to any Priority Bonds, plus
(ii) 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.
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.
74839135.3 -24-
EE. The term Ordinance shall mean this Ordinance adopted by the City Council on June
21, 2016 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 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.
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 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;
(4) “City of Corpus Christi, Texas Utility System Junior Lien Revenue
Refunding 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;
74839135.3 -25-
(6) “City of Corpus Christi, Texas Utility System Rate Junior Lien Revenue
Improvement Bonds, Series 2015C”, dated July 1, 2015, in the original principal amount
of $101,385,000;
(7) “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;
(8) “City of Corpus Christi, Texas Utility System Junior Lien Revenue
Refunding Bonds, Series 2017”, dated March 15, 2017, in the original principal amount of
$51,215,000;
(9) “City of Corpus Christi, Texas Utility System Junior Lien Revenue
Refunding Bonds, Series 2017A”, dated May 1, 2017, in the original principal amount of
$27,670,000;
(10) “City of Corpus Christi, Texas Utility System Junior Lien Revenue
Improvement Bonds, Series 2017”, dated October 1, 2017, in the original principal amount
of $2,750,000; and
(11) Upon issuance, the Bonds.
II. 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 Improvement
Bonds, Series 2010”, dated March 1, 2010, in the original principal amount of $8,000,000;
(2) “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; and
(3) “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.
JJ. The term Previously Issued Subordinate Lien Obligations shall mean the “City of
Corpus Christi, Texas Utility System Subordinate Lien Revenue Refunding Bonds, Series 2018”,
dated February 15, 2018, in the original principal amount of $34,835,000.
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
74839135.3 -26-
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 Purchasers shall mean the initial purchaser or purchasers of the Bonds
named in Section 28 of this Ordinance.
NN. The term Required Reserve Amount shall have the meaning given such term in
Section 14 of this Ordinance.
OO. The term Reserve Fund shall have the meaning given such term in Section 14 of
this Ordinance.
PP. The term Reserve Fund Deposits shall have the meaning given such term in Section
14 of this Ordinance.
QQ. 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 (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.
RR. 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.
SS. The term Subordinate Lien Obligations shall mean (i) the Previously Issued
Subordinate Lien Obligations, (ii) any Additional Subordinate Lien Obligations, and (iii) any
obligations issued to refund the foregoing payable and equally and ratably secured from a lien on
and pledge of the Net Revenues that is subordinate and inferior to the lien thereon and pledge
thereof securing the payment of the Priority Bonds and the Junior Lien Obligations but superior to
the lien thereon and pledge thereof securing the payment of the Inferior Lien Obligations, as
determined by the City Council in accordance with any applicable law.
TT. 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
74839135.3 -27-
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 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.
UU. 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.
74839135.3 -28-
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
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
74839135.3 -29-
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 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, the Bonds, 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 the Previously
Issued Subordinate Lien Obligations and any Additional Subordinate Lien Obligations hereafter
issued by the City.
E. Fifth: To the payment of the amounts that must be deposited in any special funds
and accounts created and established for the payment, security, and benefit of the 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 Improvement and 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
74839135.3 -30-
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.
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 Improvement and 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
74839135.3 -31-
due on any repayment obligation of the City by reason of payments made under such Credit
Facility does not exceed the highest lawful rate of interest which may be paid by the City at the
time of the delivery of the Credit Facility. The City reserves the right to use Junior Lien Pledged
Revenues to fund the payment of (1) periodic premiums on the Credit Facility as a part of the
payment of the City’s Operating Expenses, and (2) any repayment obligation incurred by the City
(including interest) to the Credit Provider, the payment of which will result in the reinstatement of
such Credit Facility, prior to making payments required to be made to the Reserve Fund pursuant
to the provisions of this Section to restore the balance in such fund the Required Reserve Amount
for the Bonds.
Until the issuance of any Additional Junior Lien Obligations (or as from time to time
recalculated by the City as provided in the first paragraph of this Section), the Required Reserve
Amount is $__________ (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
74839135.3 -32-
Priority Bonds, and any other ordinance pertaining to the issuance of Additional Junior Lien
Obligations.
During such time as the Reserve Fund contains the Required Reserve Amount, the City
Council may, at its option, withdraw all surplus funds in the Reserve Fund in excess of the
Required Reserve Amount. Any such withdrawn surplus shall be deposited to the Bond Fund or
used by the City for any other lawful purpose; provided, however, to the extent that such excess
amount represents Bond proceeds, then such amount must be transferred to the Bond Fund or be
otherwise used in accordance with then-applicable State law.
In the event a Credit Facility issued to satisfy all or a part of the City’s obligation with
respect to the Reserve Fund causes the amount then on deposit in the Reserve Fund to exceed the
Required Reserve Amount for the Bonds, the City may transfer such excess amount to any fund
or funds established for the payment of or security for the Bonds (including any escrow established
for the final payment of any such obligations pursuant to the provisions of Chapter 1207), or be
used for any lawful purposes; provided, however, to the extent that such excess amount represents
Bond proceeds, then such amount must be transferred to the Bond Fund or be otherwise used in
accordance with then-applicable State law.
Notwithstanding anything to the contrary contained in this Section, the requirements set
forth above to fund the Reserve Fund in the amount of the Required Reserve Amount shall be
suspended for such time as the Junior Lien Pledged Revenues for each Fiscal Year are equal to at
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
74839135.3 -33-
interest on and principal of the Bonds as such installment accrues or matures; such transfer of
funds must be made in such manner as will cause immediately available funds to be deposited with
the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date
a debt service payment is due on the Bonds.
SECTION 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, Small
Business Administration, Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation, or Federal Housing Administration; 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, Additional
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
74839135.3 -34-
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, 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.
74839135.3 -35-
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 City with
respect thereto does not result in a breach of the conditions under this clause (2). Any
74839135.3 -36-
payments received by the City under or in connection with any such lease, contract, license,
arrangement, easement or right in respect of the System or any part thereof shall constitute
Gross Revenues.
I. Books, Records and Accounts. It shall keep proper books, records and accounts
separate and apart from all other records and accounts, in which complete and correct entries shall
be made of all transactions relating to the System and the City shall cause said books and accounts
to be audited annually as of the close of each 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
74839135.3 -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,
Additional 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 will
not be issued for the purpose of financing Capital Improvements, or for any other lawful
74839135.3 -38-
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
(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 construction thereof
and for at least five Fiscal Years after the date the Capital Addition becomes commercially
74839135.3 -39-
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
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,
74839135.3 -40-
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 Additional Subordinate Lien Obligations secured by a lien on
and pledge of the Net Revenues of the System subordinate and inferior to the lien thereon and
pledge thereof securing the Priority Bonds and that is included in the Junior Lien Pledged
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, this Ordinance, and the Previously Issued Subordinate Lien Obligations.
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 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
74839135.3 -41-
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 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.
74839135.3 -42-
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 (i) 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 (ii) there is delivered
to the City and the Paying Agent/Registrar such security or indemnity as may be required to save
each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that
such Bond has been acquired by a bona fide purchaser, the City shall execute and, upon its request,
the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost, or stolen Bond, a new Bond of the same Stated Maturity and interest
rate and of like tenor and principal amount, bearing a number not contemporaneously Outstanding.
In case any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the City in its discretion may, instead of issuing a new Bond, pay such
Bond.
Upon the issuance of any new Bond or payment in lieu thereof, under this Section, the City
may require payment by the Holder of a sum sufficient to cover any tax or other governmental
charge imposed in relation thereto and any other expenses (including attorney’s fees and the fees
and expenses of the Paying Agent/Registrar) connected therewith.
Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost,
or stolen Bond shall constitute a replacement of the prior obligation of the City, whether or not the
mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds.
74839135.3 -43-
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 September ___, 2019 (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 September ___, 2019, 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 and Trust Agreement - Approval and Execution. The Escrow and
Trust Agreement dated as of August 27, 2019 (the Agreement) by and between the City and
____________________________, _____________, 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.
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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 IMPROVEMENT AND
REFUNDING BONDS, SERIES 2019 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 the 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 this
redemption to the holders of the Refunded Obligations in the form and manner described in the
City ordinance authorizing the issuance of Refunded Obligations.
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.
74839135.3 -45-
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.
C. No Private Use or Private Payments. Except to the extent it will not cause the
Bonds to become “private activity bonds” within the meaning of section 141 of the Code and the
Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of
Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or indirectly
with Gross Proceeds of the Bonds (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
74839135.3 -46-
(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 to the extent it will not cause the Bonds to become
“private activity bonds” within the meaning of section 141 of the Code and the Regulations and
rulings thereunder, the City shall not use Gross Proceeds of the Bonds (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 to the extent it will not cause the Bonds to
become “arbitrage bonds” within the meaning of section 148 of the Code and the Regulations and
rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds
directly or indirectly invest Gross Proceeds in any Investment, if as a result of such investment the
Yield of any Investment acquired with Gross Proceeds, whether then held or previously disposed
of, materially exceeds the Yield of the Bonds.
F. Not Federally Guaranteed. Except to the extent permitted by section 149(b) of the
Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action
which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of
the Code and the Regulations and rulings thereunder.
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.
74839135.3 -47-
(2) Not less frequently than each Computation Date, the City shall calculate the
Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the
Regulations and rulings thereunder. The City shall maintain such calculations with its
official transcript of proceedings relating to the issuance of the Bonds until six years after
the final Computation Date.
(3) As additional consideration for the purchase of the Bonds by the Purchasers
and the loan of the money represented thereby and in order to induce such purchase by
measures designed to insure the excludability of the interest thereon from the gross income
of the owners thereof for federal income tax purposes, the City shall pay to the United
States out of the Bond Fund or its general fund, as permitted by applicable Texas statute,
regulation or opinion of the Attorney General of the State of Texas, the amount that when
added to the future value of previous rebate payments made for the Bonds equals (i) in the
case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations,
one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any
other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all
cases, the rebate payments shall be made at the times, in the installments, to the place and
in the manner as is or may be required by section 148(f) of the Code and the Regulations
and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and
information as is or may be required by section 148(f) of the Code and the Regulations and
rulings thereunder.
(4) The City shall exercise reasonable diligence to assure that no errors are
made in the calculations and payments required by paragraphs (2) and (3), and if an error
is made, to discover and promptly correct such error within a reasonable amount of time
thereafter (and in all events within one hundred eighty (180) days after discovery of the
error), including payment to the United States of any additional Rebate Amount owed to
it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations.
I. Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of
the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the
earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces
the amount required to be paid to the United States pursuant to Subsection H of this Section
because such transaction results in a smaller profit or a larger loss than would have resulted if the
transaction had been at arm’s length and had the Yield of the Bonds not been relevant to either
party.
J. Bonds Not Hedge Bonds.
(1) 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.
74839135.3 -48-
(3) The City reasonably expects to spend 85% of the spendable years after the
date of issuance thereof.
K. No Subsidy Payments.
(1) The City hereby certifies that it will neither request nor accept direct pay
subsidy payments from the United States Treasury in support of the payment of debt
service on the Refunded Obligations prior to their date of early redemption, including the
discontinuation of all filings with the Internal Revenue Service (the Service) of Forms
8038-CP requesting such payments, for reporting periods that occur on or after the date of
issue of the Bonds.
(2) The City will file or cause to be filed with the Service a final Form 8038-
CP and will notify the Service in such form that the City thereby will discontinue such
filings.
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.
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; and/or (ii) Government
74839135.3 -49-
Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an
authorized escrow agent, which Government Securities 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.
In the event of a defeasance of the Bonds, the City shall deliver a certificate from its financial
advisor, the Paying Agent/Registrar, an independent accounting firm, 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. To the extent applicable,
if at all, 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 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
74839135.3 -50-
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.
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.
74839135.3 -51-
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.
Financial Obligation means a (a) debt obligation; (b) derivative instrument entered into in
connection with, or pledged as security or a source of payment for, an existing or planned debt
obligation; or (c) guarantee of a debt obligation or any such derivative instrument; provided that
“financial obligation” shall not include municipal securities (as defined in the Securities Exchange
Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been
provided to the MSRB consistent with the Rule.
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.
Undertaking means the City’s continuing disclosure undertaking, described in subsections
B through F below, hereunder accepted and entered into by the City for the purpose of compliance
with the Rule.
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 2019, financial information and
operating data with respect to the System of the general type included in the 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
74839135.3 -52-
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;
(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
74839135.3 -53-
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material;
(14) Appointment of a successor or additional Paying Agent/Registrar or the
change of name of a Paying Agent/Registrar, if material;
(15) Incurrence of a Financial Obligation of the City, if material, or agreement
to covenants, events of default, remedies, priority rights, or other similar terms of a
Financial Obligation of the City, any of which affect security holders, if material; and
(16) default, event of acceleration, termination event, modification of terms, or
other similar events under the terms of a Financial Obligation of the City, any of which
reflect financial difficulties.
For these purposes, (a) 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, and (b) the City intends the words used in the immediately preceding paragraphs (15) and
(16) and the definition of Financial Obligation in this Section to have the same meanings as when
they are used in the Rule, as evidenced by SEC Release No. 34-83885, dated August 20, 2018.
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.
74839135.3 -54-
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
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.
74839135.3 -55-
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.
F. General Policies and Procedures Concerning Compliance with the Rule.
Because the issuance of the Bonds is subject to the provisions of the Rule and because the
potential “underwriters” in a negotiated sale of the Bonds or the initial purchasers in a competitive
sale of the Bonds may be subject to MSRB rules and regulations with respect to such sale
(including certain due diligence and suitability requirements, among others), the City hereby
adopts the General Policies and Procedures Concerning Compliance with the Rule (the Policies
and Procedures), attached hereto as Exhibit H, with which the City shall follow to assure
compliance with the Undertaking. The City has developed these Policies and Procedures for the
purpose of meeting its requirements of the Undertaking and, in connection therewith, has sought
the guidance from its internal staff charged with administering the City’s financial affairs, its
municipal or financial advisors, its legal counsel (including its Bond Counsel), and its independent
accountants (to the extent determined to be necessary or advisable). The Policies and Procedures
can be amended at the sole discretion of the City and any such amendment will not be deemed to
be an amendment to the Undertaking. Each Authorized Official is hereby authorized to amend the
Policies and Procedures as a result of a change in law, a future issuance of indebtedness subject to
the Rule, or another purpose determined by the Authorized Official to be necessary or desirable
for or with respect to future compliance with the Undertaking.
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
74839135.3 -56-
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 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
74839135.3 -57-
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.
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;
74839135.3 -58-
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.
[The remainder of this page intentionally left blank.]
74839135.3 S-1
SIGNED AND SEALED THIS 27th DAY OF AUGUST, 2019.
CITY OF CORPUS CHRISTI, TEXAS
__________________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(SEAL)
APPROVED THIS 27th DAY OF AUGUST, 2019:
____________________________________
Miles Risley, City Attorney
74839135.3 S-2
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 27th
day of August, 2019, authorizing the issuance of the City’s Utility System Junior Lien Revenue
Improvement and Refunding Bonds, Series 2019, 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 27th day of August, 2019.
City Secretary
(CITY SEAL)
74839135.3 S-3
The foregoing ordinance was read for the first time and passed to its second reading on this the
20th day of August, 2019, by the following vote:
Joe McComb ____________ Rudy Garza ___________
Paulette Guajardo ____________ Michael T. Hunter ____________
Everett Roy ____________ Ben Molina ____________
Roland Barrera ____________ Greg Smith ____________
Gil Hernandez ____________
That the foregoing ordinance was read for the second time and passed finally on this the 27th day
of August, 2019, by the following vote:
Joe McComb ____________ Rudy Garza ___________
Paulette Guajardo ____________ Michael T. Hunter ____________
Everett Roy ____________ Ben Molina ____________
Roland Barrera ____________ Greg Smith ____________
Gil Hernandez ____________
PASSED AND APPROVED, this the 27th day of August, 2019.
ATTEST:
__________________________________ _____________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
74839135.3 S-4
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 and Trust 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
Exhibit H ........................ General Policies and Procedures Concerning Compliance With the Rule
74839135.3 Schedule I-1
SCHEDULE I
Schedule of Refunded Obligations
“City of Corpus Christi, Texas Utility System Revenue Refunding and
Improvement Bonds, Taxable Series 2010 (Direct Subsidy – Build America
Bonds)”, dated July 1, 2010, in the original principal amount of $60,625,000 and
maturing on July 15, 2025, July 15, 2030, and July 15, 2040 in the aggregate
principal amount of $58,680,000. The redemption date for these Refunded
Obligations is July 15, 2020.
74839135.3 Schedule II-1
SCHEDULE II
Approval Certificate
See Tab No. ___
74839135.3 A-1
EXHIBIT A
Paying Agent/Registrar Agreement
See Tab No. ___
74839135.3 B-1
EXHIBIT B
Purchase Contract
See Tab No. ___
74839135.3 C-1
EXHIBIT C
Escrow and Trust Agreement
See Tab No. ___
74839135.3 D-1
EXHIBIT D
Notices of Redemption
See Tab No. ___
74839135.3 E-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.
74839135.3 F-1
EXHIBIT F
Form of Reimbursement Agreement
See Tab No. ___
74839135.3 G-1
EXHIBIT G
DTC Letter of Representations
See Tab No. ___
74839135.3 H-1
EXHIBIT H
General Policies and Procedures
Concerning Compliance with the Rule
I. Capitalized terms used in this Exhibit have the meanings ascribed thereto in Section 46 of
the Ordinance. Bonds refer to the Bonds that are the subject of the Ordinance to which this Exhibit
is attached.
II. As a capital markets participant, the City is aware of its continuing disclosure requirements
and obligations existing under the Rule prior to February 27, 2019, the effective date of the most
recent amendment to the Rule (the Effective Date), and has implemented and maintained internal
policies, processes, and procedures to ensure compliance therewith. Adherence to these internal
policies, processes, and procedures has enabled underwriters in non-exempt negotiated sales and
initial purchasers in non-exempt competitive sales to comply with their obligations arising under
various MSRB rules and regulations concerning due diligence and findings of suitability, among
other matters, regarding the City’s compliance with the Rule.
III. The City is aware that the Rule was amended as of the Effective Date (the Rule Amendment)
and has accommodated this amendment by adding subparagraphs (15) and (16) to Section 46C of
the Ordinance, which provisions are a part of the Undertaking.
IV. The City is aware that “participating underwriters” (as such term is defined in the Rule) of
the Bonds must make inquiry and reasonably believe that the City is likely to comply with the
Undertaking and that the standards for determining compliance have increased over time as a result
of, among others, the United States Securities and Exchange Commission’s Municipalities
Continuing Disclosure Cooperation Initiative and regulatory commentary relating to the
effectiveness of the Rule Amendment.
V. The City now establishes the following general policies and procedures (the Policies and
Procedures) for satisfying its obligations pursuant to the Undertaking, which policies and
procedures have been developed based on the City’s informal policies, procedures, and processes
utilized prior to the Effective Date for compliance with the City’s obligations under the Rule, the
advice from and discussions with the City’s internal senior staff (including staff charged with
administering the City’s financial affairs), its co-municipal or financial advisors, its legal counsel
(including Bond Counsel), and its independent accountants, to the extent determined to be
necessary or advisable (collectively, the Compliance Team):
1. The Director of Finance (the Compliance Officer) shall be responsible for satisfying the
City’s obligations pursuant to the Undertaking through adherence to these Policies and
Procedures;
2. the Compliance Officer shall establish reminder or “tickler” systems to identify and
timely report to the MSRB, in the format thereby prescribed from time to time, the City’s
information of the type described in Section 46B of the Ordinance;
3. the Compliance Officer shall promptly determine the occurrence of any of the events
described in Section 46C of the Ordinance;
74839135.3 H-2
4. the Compliance Officer shall work with external consultants of the City, as and to the
extent necessary, to timely prepare and file with the MSRB the annual information of the
City and notice of the occurrence of any of the events referenced in Clauses 2 and 3
above, respectively, the foregoing being required to satisfy the terms of the Undertaking;
5. the Compliance Officer shall establish a system for identifying and monitoring any
Financial Obligations, whether now existing or hereafter entered into by the City, and
(upon identification) determining if such Financial Obligation has the potential to
materially impact the security or source of repayment of the Bonds;
6. upon identification of any Financial Obligation meeting the materiality standard
identified in Clause 5 above, the Compliance Officer shall establish a process for
identifying and monitoring any City agreement to covenants, events of default, remedies,
priority rights, or other similar terms under such Financial Obligation;
7. the Compliance Officer shall establish a process for identifying the occurrence of any
default, event of acceleration, termination event, modification of terms, or other similar
events under the terms of any Financial Obligation, the occurrence of any of which reflect
financial difficulties of the City; and
8. the Compliance Officer shall annually review these Policies and Procedures with the
remainder of the Compliance Team, make any modifications on an internal document
retained by the Compliance Officer and available to any “participating underwriter” (as
defined in the Rule), if requested, and on the basis of this annual review (to the extent
determined to be necessary or desirable), seek additional training for herself or himself,
as well as other members of the City’s internal staff identified by the Compliance Officer
to assist with the City’s satisfaction of the terms and provisions of the Undertaking.
AGENDA MEMORANDUM
First Reading for the City Council Meeting of August 20, 2019
Second Reading for the City Council Meeting of August 27, 2019
______________________________________________________________________
DATE:August 2, 2019
TO:Peter Zanoni, City Manager
THRU:Constance P. Sanchez, Interim Assistant City Manager
FROM:Alma Casas, Interim Director of Financial Services
AlmaC@cctexas.com
(361) 826-3610
CAPTION:
Ordinance authorizing the issuance of “City of Corpus Christi, Texas General Improvement
Refunding Bonds, Series 2019” related to Parks and Recreation improvements in an amount not
to exceed $9,000,000 and authorizing other matters incident and related thereto.
PURPOSE:
The City plans on issuing $9,000,000 of General Improvement Refunding Bonds (tax-exempt)
for savings. The amount of bond issuance included in the ordinance includes estimated costs of
issuance and accounts for any fluctuations in the bond market at the time of pricing.
BACKGROUND AND FINDINGS:
In June 2010, the City of Corpus Christi issued $13,685,000 of General Improvement Bonds to
fund Parks and Recreation improvements approved by the voters in November 2008. These
bonds are currently callable and because of favorable market conditions, City staff is
recommending that the outstanding balance of these bonds of $8,630,000 be refunded for
savings. Net present value savings is estimated to be 10.2% or approximately $881,400.
Because of the fluctuating conditions in the municipal bond market and to ensure that all legal
documents are executed on a timely basis, our financial advisor has recommended that the City
Council delegate to the City Manager, Assistant City Managers, and the Director of Financial
Services - including any person serving in any of the foregoing capacities on an interim or non-
permanent basis (the “Authorized Officials”) the authority to effect the sale of the bonds subject
to the following parameters: (1) the principal amount in total of all bonds sold may not exceed
$9,000,000; (2) the refunding will result in a net present value savings of at least 3.00%; and (3)
the true interest rate shall not exceed 5% per year. The City's bond counsel has confirmed that
Authorization for the Issuance of General Improvement
Refunding Bonds – Tax Exempt
the City can delegate the sale of the bonds to the Delegated Officials in the manner outlined
above pursuant to the authority contained in Chapter 1371, as amended, Texas Government
Code.
ALTERNATIVES:
n/a
OTHER CONSIDERATIONS:
n/a
CONFORMITY TO CITY POLICY:
This item conforms to City policy.
EMERGENCY / NON-EMERGENCY:
Non-emergency
DEPARTMENTAL CLEARANCES:
Financial Services Department
Bond Counsel
City Attorney’s Office
FINANCIAL IMPACT:
□ Not Applicable □ Operating Expense X Revenue □ CIP
Project to Date Exp.Current Future
(CIP Only)Year Years TOTALS
Budget - - - -
Encumbered/Expended
amount of (date) - - - -
This item -9,000,000$ -9,000,000$
BALANCE -9,000,000$ -9,000,000$
FUND(S): CIP Fund (number to be determined after bond sale)
COMMENTS:
None.
RECOMMENDATION:
Staff recommends approval of the ordinance as presented.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
74853838.3
DRAFT 7/31/19
ORDINANCE NO. __________
ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF
CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT REFUNDING
BONDS, SERIES 2019” IN AN AMOUNT NOT TO EXCEED
$9,000,000; MAKING PROVISIONS FOR THE PAYMENT AND
SECURITY THEREOF BY A LEVY OF A CONTINUING DIRECT
ANNUAL AD VALOREM TAX, WITHIN THE LIMITATIONS
PRESCRIBED BY LAW; PRESCRIBING THE FORM, TERMS,
CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT
AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE
BONDS; AUTHORIZING THE EXECUTION OF A PAYING AGENT/
REGISTRAR AGREEMENT, A PURCHASE CONTRACT,
AND AN ESCROW AGREEMENT; COMPLYING WITH 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 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, sold, and delivered, and there are currently outstanding obligations in
the aggregate original principal amount of $8,630,000 being the obligations set forth on Schedule
I hereto which is incorporated by reference for all purposes to this ordinance (collectively, the
Refunded Obligations); and
WHEREAS, the City Council intends to issue an aggregate principal amount of
$__________ in general improvement refunding bonds the proceeds of which will be utilized to
provide for the (i) refunding of the Refunded Obligations and (ii) payment of the costs of
issuance of the general improvement refunding bonds; and
WHEREAS, pursuant to the provisions of Chapter 1207, as amended, Texas Government
Code (the Act), the City Council is authorized to issue 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, the Act permits that the deposit of the proceeds from the sale of the
refunding bonds be deposited directly with any designated escrow agent which is not the
depository bank of the City; and
WHEREAS, when firm banking arrangements have been made for the payment of
principal of and interest to the stated maturity or redemption dates of the Refunded Obligations,
then the Refunded Obligations shall no longer be regarded as outstanding except for the purpose
of receiving payment from the funds provided for such purpose and may not be included in or
74853838.3 -2-
considered to be an indebtedness of the City for the purpose of a limitation on outstanding
indebtedness or taxation or for any other purpose; and
WHEREAS, Wells Fargo Bank, National Association, Minneapolis, Minnesota (as
successor in interest to Wells Fargo Bank, National Association, Austin, Texas) currently serves
as the paying agent for the Refunded Obligations (hereinafter defined); and
WHEREAS, __________, __________, __________ (which is not the depository bank
of the City), is hereby appointed as the Paying Agent/Registrar (hereinafter defined) for the
general improvement refunding bonds; and
WHEREAS, __________, __________, __________ (which is not the depository bank
of the City), is hereby appointed as the Escrow Agent (hereinafter defined) for the general
improvement 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 refunding bonds herein authorized and issued to restructure the City’s
debt service and associated tax rates in the coming years, and such refunding will result in a net
present value benefit of $__________ (_____%) and a gross savings of $__________; and
WHEREAS, the City Council hereby finds and determines, pursuant to the authority
provided by the Act, to delegate to the Authorized Officials (hereinafter defined) the authority to
execute an Approval Certificate, to approve the final terms of the refunding bonds issued
hereunder; and
WHEREAS, the City Council hereby finds and determines that the issuance of the
general improvement refunding bonds for the purpose of refunding the Refunded Obligations is
in the best interests of the residents of the City, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI
THAT:
SECTION 1. Authorization - Designation - Principal Amount - Purpose – Dated Date.
General improvement refunding bonds of the City, in one or more series, shall be and are hereby
authorized to be issued in the aggregate principal amount of
______________________________ AND NO/100 DOLLARS ($__________), to be
designated and bear the title of “CITY OF CORPUS CHRISTI, TEXAS GENERAL
IMPROVEMENT REFUNDING BONDS, SERIES 2019” (the Bonds), for the purpose of
providing funds for the (i) discharge and final payment of the Refunded Obligations and (ii)
payment of the costs of issuance of the Bonds, all in conformity with the laws of the State of
Texas, particularly the Act, and an ordinance adopted by the City Council on August 27, 2019,
and the City’s Home Rule Charter.
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 each series of Bonds authorized herein and carrying out the procedures
specified in this Ordinance, including the following:
74853838.3 -3-
(1) Aggregate principal amount of the Bonds;
(2) Rate of interest to be borne on the principal amount of each maturity;
(3) Interest payment dates;
(4) Extraordinary, optional, and/or mandatory redemption provisions;
(5) Pricing of the Bonds, including use of premium, discount, underwriters’
compensation, and costs of issuance;
(6) Underwriting syndicate for the Bonds, including the identification of the
senior and book running manager and co-managers;
(7) Dated Date (hereinafter defined);
(8) Selection of the bond insurer, if any, with respect to the Bonds, if
determined by an Authorized Official to be advantageous to the City.
The Bonds issued under this Ordinance shall be issued within the following parameters:
(1) The total principal amount of the Bonds issued hereunder shall not exceed
$9,000,000;
(2) The maximum maturity for the Bonds issued hereunder shall be March 1,
2030;
(3) The true interest cost (as determined by federal arbitrage yield) applicable
to the Bonds issued hereunder shall not exceed a rate greater than 5.00% per annum; and
(4) The refunding of the Refunded Obligations shall result in a net present
value benefit to the City of not less than 3.00%, excluding the City contribution and costs
of issuance measured on a comparative basis to the prior debt service on the Refunded
Obligations.
Any Authorized Official, acting for and on behalf of the City, is authorized to execute the
Approval Certificate attached hereto as Schedule II. The execution of the Approval Certificate
relating to the Bonds issued hereunder shall evidence the sale date of the Bonds by the City to
the Purchasers (hereinafter defined) in accordance with the provisions of the Act and as set forth
in Schedule II. Upon execution of an Approval Certificate, Bond Counsel is authorized to
complete this Ordinance to reflect such final terms of the Bonds.
SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates – Dated Date. The Bonds are issuable in fully registered form only,
without coupons; shall be dated __________, 2019 (the Dated Date) and shall be issued in
denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), shall be
lettered “R” and numbered consecutively from One (1) upward, and principal shall become due
and payable on March 1 in each of the years and in principal amounts (the Stated Maturities) and
74853838.3 -4-
bear interest on the unpaid principal amounts from the Closing Date (anticipated to be on or
about __________, 2019), or from the most recent Interest Payment Date (hereinafter defined) to
which interest has been paid or duly provided for, to Stated Maturity, at the per annum rates,
while Outstanding (hereinafter defined), in accordance with the following schedule:
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
The Bonds shall bear interest on the unpaid principal amounts from the Closing Date or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
to Stated Maturity 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 Bonds shall
be payable on March 1 and September 1 in each year (each, an Interest Payment Date),
commencing March 1, 2020, while the Bonds are Outstanding.
SECTION 3. Payment of Bonds - Paying Agent/Registrar.
The principal of and the interest on the Bonds, due and payable by reason of Stated
Maturity, or otherwise, shall be payable, without exchange or collection charges to the Holder
(hereinafter defined), appearing on the registration and transfer books maintained by the Paying
Agent/Registrar (hereinafter defined), 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 Bonds shall be without
exchange or collection charges to the Holder of the Bonds.
The selection and appointment of __________, __________, __________ 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 hereto, in
74853838.3 -5-
substantially final form, as Exhibit A, 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 shall be
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 corporate office of the successor Paying
Agent/Registrar.
Principal of and interest on the Bonds, due and payable by reason of Stated Maturity, 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 (hereinafter defined) for purposes of payment of
interest on the Bonds, (ii) on the date of surrender of the Bonds for purposes of receiving
payment of principal thereof at the Bonds’ 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 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 on the Bonds shall be payable only upon presentation and surrender of the
Bonds to the Paying Agent/Registrar at its corporate trust office (provided, however, with respect
to principal payments prior to the final Stated Maturity, the Bonds need not be surrendered to the
Paying Agent/Registrar, who will merely document this payment on an internal ledger
maintained by the Paying Agent/Registrar). Interest on the Bonds 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 Bonds (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 su ch 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 or interest on the Bonds shall be a Saturday,
a 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.
74853838.3 -6-
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 of a Bond 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. The Bonds are not subject to redemption prior to Stated
Maturity.
SECTION 5. Execution - Registration. The Bonds shall be executed on behalf of the
City by its Mayor or Mayor Pro Tem under the seal of the City reproduced or impressed thereon
and attested by its City Secretary. The signature of any of said officers 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, 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. A
Security Register relating to the registration, payment, transfer, or exchange of the Bonds 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 in the
Security Register the name and address of each Holder of the Bonds issued under and pursuant to
the provisions of this Ordinance. 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 Paying Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds executed on behalf of, and
74853838.3 -7-
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 Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for other Bonds 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 new Bonds executed on behalf of, and furnished by, the City 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 17 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 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,
interest rate, 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 Purchasers
or the designee thereof. The Initial Bond shall be the Bond submitted to the Office of the
Attorney General of the State of Texas for approval and certified and registered by the Office of
the Comptroller of Public Accounts of the State of Texas. At any time after the delivery of the
Initial Bond to the Purchasers, the Paying Agent/Registrar, upon written instructions from the
Purchasers, or the designee thereof, shall cancel the Initial Bond delivered hereunder and
exchange therefor definitive Bonds of like kind and denominations, Stated Maturities, principal
amounts, and bearing applicable interest rates, and shall be lettered “R” and numbered
consecutively from One (1) upward, for transfer and delivery to the Holders named and at the
addresses identified therefor; all pursuant to and in accordance with and pursuant to such written
instructions from the Purchasers, or the designee thereof, and such other information and
documentation as the Paying Agent/Registrar may reasonably require.
74853838.3 -8-
SECTION 8. Forms.
A. Forms Generally. The Bonds, the Registration Certificate of 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 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 insurance legends and 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, 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.
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74853838.3 -9-
B. Form of Definitive Bond.
REGISTERED REGISTERED
NO. _______ PRINCIPAL AMOUNT
$_____________
United States of America
State of Texas
Counties of Nueces, Aransas, Kleberg, and San Patricio
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT REFUNDING BOND,
SERIES 2019
Dated Date: Interest Rate: Stated Maturity: CUSIP NO:
__________, 2019
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, acknowledges itself indebted to and hereby promises to pay to the
order of the Registered Owner named above (the Holder), or the registered assigns thereof, on
the Stated Maturity date specified above, the Principal Amount stated above and to pay interest
on the unpaid Principal Amount hereof (computed on the basis of a 360-day year of twelve
30-day months) from the Closing Date, or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for, to Stated Maturity,
while Outstanding, at the per annum rate specified above; such interest being payable on March
1 and September 1 in each year (each, an Interest Payment Date), commencing March 1, 2020.
Principal on this Bond shall be payable to the Holder, upon its presentation and surrender,
at the corporate trust office of the Paying Agent/Registrar executing the registration certificate
appearing hereon or its successor (provided, however, with respect to principal payments prior to
the final Stated Maturity, the Bonds need not be surrendered to the Paying Agent/Registrar, who
will merely document this payment on an internal ledger maintained by the Paying
Agent/Registrar). 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 fifteenth 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 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.
74853838.3 -10-
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 on August 27, 2019 (the Ordinance), for the purpose of providing funds for the (i)
discharge and final payment of the Refunded Obligations and (ii) payment of the costs of
issuance of the general improvement refunding bonds, under and in strict conformity with the
laws of the State of Texas, particularly Chapters 1207, as amended, Texas Government Code,
and the City’s Home Rule Charter.
As specified in the Ordinance, the Bonds are not subject to redemption prior to the Stated
Maturity.
The Bonds of this series are payable from the proceeds of an annual ad valorem tax
levied within the limitations prescribed by law upon all taxable property within the City.
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 for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; 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 its Stated Maturity thereof, and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used
herein have the same meanings assigned in the Ordinance.
As provided in the Ordinance and subject to certain limitations contained therein, this
Bond is transferable on the Security Register of the City, upon surrender of this Bond for transfer
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,
and (iii) on any other date as the owner hereof for all other purposes, and neither the City nor the
Payin g 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
74853838.3 -11-
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 or in the issuance of this Bond 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 the issuance of this Bond 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 Bonds by the levy of a tax as aforestated. 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.
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74853838.3 -12-
IN WITNESS WHEREOF, the City has caused this Bond to be duly executed under its
official seal.
CITY OF CORPUS CHRISTI, TEXAS
__________________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(CITY SEAL)
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74853838.3 -13-
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)
* NOTE TO PRINTER: Not to appear on printed Bonds
D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds
Only.
REGISTRATION 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:
____________________________________
____________________, as Paying
Agent/Registrar
By: _______________________________
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Bonds.
74853838.3 -14-
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:
____________________________________
F. 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:
(i) immediately under the name of the bond the headings “Interest Rate” and
“Stated Maturity” shall both be completed “as shown below”;
(ii) the first two paragraphs shall read as follows:
The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation
located 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 (the Holder), or the registered assigns thereof, 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
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
(Information to be inserted from schedule in Section 2 hereof).
and to pay interest on the unpaid principal installments hereof from the Closing Date (anticipated
to occur on or about __________, 2019), or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for until the principal
74853838.3 -15-
amount has become due and payment thereof has been made or duly provided for, to Stated
Maturity, while Outstanding, at the per annum rates of interest specified above computed on the
basis of a 360-day year of twelve 30-day months; such interest being payable on March 1 and
September 1 of each year (each, an Interest Payment Date) commencing March 1, 2020.
Principal of this Bond shall be payable to the Holder hereof, upon presentation and
surrender, to Stated Maturity or prior redemption, at the corporate trust office of __________,
__________, __________ (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 fifteenth day of the
month next preceding an 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 the Holder hereof at the Holder’s risk and expense.
[END OF FORMS]
G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers,
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 19 and 36 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 Approval Certificate shall mean a written instrument from time to time
executed by an Authorized Official in accordance with Section 1 of this Ordinance.
B. The term Authorized Official shall mean the City Manager of the City, each
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).
C. The term Bond Fund shall mean the special fund created and established by the
provisions of Section 10 of this Ordinance.
D. The term Bonds shall mean the $__________ “CITY OF CORPUS CHRISTI,
TEXAS GENERAL IMPROVEMENT REFUNDING BONDS, SERIES 2019” authorized by
this Ordinance.
74853838.3 -16-
E. The term City shall mean City of Corpus Christi, located in the Counties of
Nueces, Aransas, Kleberg, and San Patricio, Texas and, where appropriate, the City Council of
the City.
F. The term Closing Date shall mean the date of physical delivery of the Initial Bond
in exchange for the payment in full by the Purchasers.
G. 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.
H. The term Depository shall mean an official depository bank of the City.
I. The term Government Securities 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.
J. The term Holder or Holders shall mean the registered owner, whose name
appears in the Security Register, for any Bond.
K. The term Interest Payment Date shall mean the date interest is payable on the
Bonds, being March 1 and September 1 of each year, commencing March 1, 2020, while any of
the Bonds remain Outstanding.
L. The term Ordinance shall mean this ordinance adopted by the City Council of the
City on August 27, 2019.
M. The term Outstanding when used in this Ordinance with respect to Bonds shall
mean, as of the date of determination, all Bonds issued and delivered under this Ordinance,
except:
74853838.3 -17-
(1) those Bonds canceled by the Paying Agent/Registrar or delivered to the
Paying Agent/Registrar for cancellation;
(2) those Bonds for which payment has been duly provided by the City in
accordance with the provisions of Section 17 of this Ordinance; and
(3) those Bonds that have been mutilated, destroyed, lost, or stolen and
replacement Bonds have been registered and delivered in lieu thereof as provided in
Section 16 of this Ordinance.
N. The term Purchasers shall mean the initial purchasers of the Bonds named in
Section 17 of this Ordinance.
O. The term Stated Maturity shall mean the annual principal payments of the Bonds
payable on March 1 of each year as set forth in Section 2 of this Ordinance.
SECTION 10. Bond Fund; Investments. For the purpose of paying the interest on and to
provide a sinking fund for the payment, and retirement of the Bonds, there shall be and is hereby
created a special fund to be designated “GENERAL IMPROVEMENT REFUNDING BONDS,
SERIES 2019 INTEREST AND SINKING FUND” (the Bond Fund), which Bond Fund shall be
kept and maintained at the Depository, and money deposited in such Bond Fund shall be used for
no other purpose and shall be maintained as provided in Section 22. Authorized Officials of the
City are hereby authorized and directed to make withdrawals from the Bond Fund sufficient to
pay the principal of, premium, if any, and interest on the Bonds as the same become due and
payable, or the purchase price thereof, and shall cause to be transferred to the Paying
Agent/Registrar from money on deposit in the Bond Fund an amount sufficient to pay the
amount of principal and/or interest stated to mature on the Bonds, 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 Bonds.
Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund
created and established pursuant to the provisions of 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, Small
Business Administration, Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation, or Federal Housing Administration; provided that all such deposits and investments
74853838.3 -18-
shall be made in such a manner that the money required to be expended from any fund will be
available at the proper time or times. All interest and income derived from deposits and
investments in such fund 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
Bonds.
SECTION 11. Tax Levy – Deposits to Bond Fund – Surplus Bond Proceeds. To provide
for the payment of the Debt Service Requirements on the Bonds being (i) the interest on the
Bonds 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 fiscal
year commencing October 1, 2020 and each succeeding year thereafter while the Bonds 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 Bond Fund and are thereafter pledged to the payment of the
Bonds. The City Council hereby declares its purpose and intent to provide and levy a tax legally
and fully sufficient to pay the Debt Service Requirements, it having been determined that the
existing and available taxing authority of the City for such purpose is adequate to permit a
legally sufficient tax in consideration of all other outstanding indebtedness and other obligations
of the City.
The City hereby covenants and agrees to cause to be deposited in the Bond Fund prior to
a principal and interest payment date for the Bonds, from the annual levy of an ad valorem tax or
from other lawfully available funds, amounts sufficient to fully pay and discharge promptly each
installment of interest and principal of the Bonds as the same accrues or matures or comes due
by reason of Stated Maturity.
Accrued interest, if any, received from the Purchasers of the Bonds, along with any taxes
collected pertaining to the Refunded Obligations, after the Closing Date, shall be deposited to the
Bond Fund and ad valorem taxes levied and collected for the benefit of the Bonds shall be
deposited to the Bond Fund. 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 sum otherwise required to be deposited in
the Bond Fund from ad valorem taxes.
SECTION 12. Security for 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 13. 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
74853838.3 -19-
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 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 14. 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 15. Cancellation. All Bonds surrendered for payment, 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 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 16. 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.
74853838.3 -20-
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 and charges (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 17. Sale of Bonds – Purchase and Investment Letter Approval – Use of
Proceeds. The Bonds authorized by this Ordinance are hereby sold by the City to __________,
___________, __________ (the Purchasers, and having all the rights, benefits, and obligations
of a Holder) in accordance with the provisions of a Purchase and Investment Letter dated
__________, 2019 (the Purchase Contract) attached hereto as Exhibit B and incorporated herein
by reference as a part of this Ordinance for all purposes. The Initial Bond shall be registered in
the name of ____________________. The pricing and terms of the sale of the Bonds are hereby
found and determined to be the most advantageous reasonably obtainable by the City. Each
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 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.
SECTION 18. Escrow Deposit Letter Approval and Execution; Proceeds of Sale;
Contribution by City. The Escrow Deposit Letter dated as of August 27, 2019 to be effective
upon the initial delivery of the Bonds to the Purchasers (the Escrow Agreement) between the
City and __________, __________, __________ (the Escrow Agent), attached hereto as
Exhibit C and incorporated herein by reference as a part of this Ordinance 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 any
Authorized Official 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 Escrow Agreement herein approved.
74853838.3 -21-
Furthermore, any Authorized Official or any one or more of said officials, 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 referenced in the Escrow
Agreement and the initial 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
GENERAL OBLIGATION REFUNDING BOND, SERIES 2019 ESCROW FUND” (the
Escrow Fund), including the execution of the subscription forms for the purchase and issuance of
the “United States Treasury Securities - State and Local Government Series”, if any, for deposit
to the Escrow Fund; all as contemplated and provided by the provisions of the Act, this
Ordinance, and the Escrow Agreement.
Immediately following the delivery of the Bonds, the 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 and deposited with the
place of payment (of the Refunded Obligations) in an account in the name of the City and
applied for the purposes of providing for the payment of the costs and expenses incurred in
connection therewith or deposited in the Bond Fund for the Bonds, all in accordance with written
instructions from the Authorized Officials.
SECTION 19. Redemption of Refunded Obligations. The Refunded Obligations are
subject to redemption prior to their stated maturities at the price of par, premium, if any, and
accrued interest to the date of redemption. The Mayor 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
date set forth on Schedule I attached to this Ordinance, 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 D and are incorporated herein by reference for all purposes. The paying agent 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 ordinance
authorizing the issuance of the Refunded Obligations.
SECTION 20. 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.
74853838.3 -22-
Gross Proceeds means any proceeds as defined in Section 1.148-1(b) of the
Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the
Regulations, of the Bonds.
Investment has the meaning set forth in Section 1.148-1(b) of the Regulations.
Nonpurpose Investment means any investment property, as defined in section
148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not
acquired to carry out the governmental purposes of the Bonds.
Rebate Amount has the meaning set forth in Section 1.148-1(b) of the
Regulations.
Regulations means any proposed, temporary, or final Income Tax Regulations
issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal
Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific
Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax
Regulation designed to supplement, amend or replace the specific Regulation referenced.
Yield of
(1) any Investment has the meaning set forth in Section 1.148-5 of the
Regulations; and
(2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations.
B. Not to Cause Interest to Become Taxable. The City shall not use, permit the use
of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition,
construction or improvement of which is to be financed 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 to the extent it will not cause the
Bonds to become “private activity bonds” within the meaning of section 141 of the Code and the
Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of
Bonds:
(1) exclusively own, operate and possess all property the acquisition,
construction or improvement of which is to be financed or refinanced directly or
indirectly with Gross Proceeds of the Bonds (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
74853838.3 -23-
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 (including property financed with Gross
Proceeds of the Refunded Obligations), 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 to the extent it will not cause the Bonds to become
“private activity bonds” within the meaning of section 141 of the Code and the Regulations and
rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans
to any person or entity other than a state or local government. For purposes of the foregoing
covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if: (1)
property acquired, constructed or improved with such Gross Proceeds is sold or leased to such
person or entity in a transaction which creates a debt for federal income tax purposes; (2)
capacity in or service from such property is committed to such person or entity under a take-or-
pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of
ownership, of such Gross Proceeds or any property acquired, constructed or improved with such
Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a
loan.
E. Not to Invest at Higher Yield. Except to the extent it will not cause the Bonds to
become “arbitrage bonds” within the meaning of section 148 of the Code and the Regulations
and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the
Bonds directly or indirectly invest Gross Proceeds in any Investment, if as a result of such
Investment the Yield on any Investments acquired with Gross Proceeds (or with money replaced
thereby), 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
74853838.3 -24-
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
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.
74853838.3 -25-
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 (3) 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.
K. Current Refunding of the Refunded Obligations. The Bonds are being issued to
refund the Refunded Obligations, and the Bonds will be issued, and certain proceeds thereof
used, within 90 days after the Closing Date for the redemption of the Refunded Obligations. 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. Accordingly, the City expects to invest the Bond
proceeds to be used to refund the Refunded Obligations without regard to Yield restrictions.
L. Elections. The City hereby directs and authorizes any 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 21. Control and Custody of Bonds. 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 including the printing and supply of
definitive Bonds and shall take and have charge and control of the Initial Bond pending its
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 thereof 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 of the State
of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas and,
together with the City’s Bond Counsel and the Paying Agent/Registrar, to make the necessary
arrangements for the delivery of the Initial Bond to the Purchasers and the initial exchange
thereof for definitive Bonds.
SECTION 22. 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 pledge
of taxes levied 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.
74853838.3 -26-
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; and/or (ii)
Government Securities shall have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which Government Securities 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. In the event of a defeasance of the Bonds, the City shall deliver a
certificate from its financial advisor, the Paying Agent/Registrar, an independent accounting
firm, 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. To the extent applicable, if at all, 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 20 hereof).
Any money so deposited with the Paying Agent/Registrar, and all income from
Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow
agent, pursuant to this Section which is not required for the payment of the Bonds, or any
principal amount(s) thereof, or interest thereon with respect to which such money has been so
deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any
money held by the Paying Agent/Registrar for the payment of the principal of and interest on the
Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity or
applicable redemption date of the Bonds such money was deposited and is held in trust to pay
shall upon the request of the City be remitted to the City against a written receipt therefor,
subject to the unclaimed property laws of the State of Texas.
Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem defeased Bonds that is made in conjunction with
the payment arrangements specified in subsection (i) or (ii) above shall not be irrevocable,
provided that: (1) in the proceedings providing for such defeasance, the City expressly reserves
the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of that
right to the owners of the defeased Bonds immediately following the defeasance; (3) directs that
notice of the reservation be included in any redemption notices that it authorizes; and (4) at the
time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased
debt as though it was being defeased at the time of the exercise of the option to redeem the
defeased Bonds, after taking the redemption into account in determining the sufficiency of the
provisions made for the payment of the defeased Bonds.
SECTION 23. Printed Opinion. The Purchasers’ obligation to accept delivery of the
Bonds is subject to its being furnished a final opinion of Norton Rose Fulbright US LLP, as
Bond Counsel, approving the Bonds as to their validity, said opinion to be dated and delivered as
74853838.3 -27-
of the date of initial delivery and payment for the Bonds. Printing of a true and correct
reproduction of said opinions on the reverse side of each of the Bonds, with the appropriate
certificate pertaining thereto executed by facsimile signature of the City Secretary of the City, is
hereby approved and authorized.
SECTION 24. CUSIP Numbers. CUSIP numbers may be printed or typed on the Bonds.
It is expressly provided, however, that the presence or absence of CUSIP numbers on the 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 Bonds.
SECTION 25. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 26. 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, be binding on the City and its successors and assigns, and 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; however, 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, premium, if any, 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, premium, if any, 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 27. 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, the Paying
Agent/Registrar, Bond Counsel, the Purchasers, and the Holders.
SECTION 28. Inconsistent Provisions. All ordinances, orders, or 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 contained herein.
SECTION 29. 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
74853838.3 -28-
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 30. 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 31. 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 32. Incorporation of Preamble Recitals. The recitals contained in the
preamble to this Ordinance 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 33. 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 pertaining to the payment, exchange,
registration, 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 herein by
reference as fully as if recopied in its entirety in this Ordinance.
SECTION 34. 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 35. Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
SECTION 36. No Recourse Against City Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon
or on this Ordinance against any official of the City or any person executing any Bond.
SECTION 37. Continuing Disclosure of Information.
A. Definitions.
74853838.3 -29-
As used in this Section, the following terms have the meanings ascribed to such terms
below:
Rule means SEC Rule 15c2-12, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
The Bonds are being sold pursuant to a private placement with the Purchasers, in
denominations of $100,000 or any integral multiple of $5,000 in excess thereof, to less than
thirty-five sophisticated investors, and therefore the Rule is not applicable to the offering of the
Bonds. Accordingly, no contract to provide continuing disclosure information after the issuance
of the Bonds has been made by the City with investors.
SECTION 38. Book-Entry Only System .
The Bonds may initially be registered so as to participate in a securities depository
system (the DTC System) with the Depository Trust Company, New York, New York, or any
successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the 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
drafts being mailed to the Holder, the word “Cede & Co.” in this Ordinance shall refer to such
new nominee of DTC.
74853838.3 -30-
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, the Depository, and DTC Participants of the availability
within a reasonable period of time through DTC of bond certificates, and the Bonds shall no
longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that
time, the City may determine that the Bonds shall be registered in the name of and deposited
with a successor depository operating a securities depository system, as may be acceptable to the
City, or such depository’s agent or designee, and if the City and the Paying Agent/Registrar do
not select such alternate securities depository system then the Bonds may be registered in
whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall
designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on such Bond and all notices with respect to such
Bond shall be made and given, respectively, in the manner provided in the Representation Letter.
SECTION 39. 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, Bond Counsel to the City, and/or Financial Advisor to the City to provide to
the Texas MAC information and documentation requested by the Texas MAC relating to the
Bonds; 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 40. Delegation Authorization Pursuant to HB 1295. Though such parties may
be identified, and the entry into a particular contract may be authorized herein, the City Council,
pursuant to the Act, and other applicable law, hereby delegates to any Authorized Official the
authority to independently select the counterparty to any agreement with any paying
agent/registrar, escrow agent, open market securities bidding agent, escrow fund winning bidder,
verification agent, rating agency, securities depository, or any other contract that is determined
by the City Manager, 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 Contract on behalf
and as the act and deed of the City. The City Council has not participated in the selection of any
of the business entities which are counterparties to the Ancillary Bond Contracts.
SECTION 41. Accounting Reports. The City shall provide annually to the Purchasers, for
so long as they are the holders of the Bonds, within 270 days after the end of each fiscal year
74853838.3 -31-
ending in or after 2019, financial information and operating date with respect to the City;
provided that such financial statements so to be provided shall be (1) prepared in accordance
with the generally accepted accounting principles, or such other accounting principles as the City
may be required to employ from time to time pursuant to Texas law or regulations, and (2)
audited, if the City commissions an audit of such statements and the audit is completed within
the period during which they must be provided. If the audit of such financial statements is not
complete within such period, then the City shall provide (1) unaudited financial statements for
the applicable fiscal year within 270 days after the end of such year, and (2) audited financial
statements for the applicable fiscal year to the Purchasers when and if the audit report on such
statements become available.
SECTION 42. 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 Purchase Contract, the Paying Agent/Registrar Agreement,
and the Escrow Agreement. In addition, prior to the initial delivery of the Bonds, any
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 43. 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.
[The remainder of this page intentionally left blank.]
S-1
PASSED, APPROVED AND ADOPTED on the 27th day of August, 2019.
CITY OF CORPUS CHRISTI, TEXAS
__________________________________________
Mayor
ATTEST:
City Secretary
(CITY SEAL)
APPROVED THIS 27th DAY OF AUGUST, 2019:
____________________________________
Miles Risley, City Attorney
[The remainder of this page intentionally left blank.]
S-2
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 27th day of
August, 2019, authorizing the issuance of the City’s General Improvement Refunding Bonds,
Series 2019, 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 27th day of August, 2019.
City Secretary
(CITY SEAL)
S-3
The foregoing ordinance was read for the first time and passed to its second reading on this the
20th day of August, 2019, by the following vote:
Joe McComb ____________ Rudy Garza ___________
Paulette Guajardo ____________ Michael T. Hunter ____________
Everett Roy ____________ Ben Molina ____________
Roland Barrera ____________ Greg Smith ____________
Gil Hernandez ____________
That the foregoing ordinance was read for the second time and passed finally on this the 27th day
of August, 2019, by the following vote:
Joe McComb ____________ Rudy Garza ___________
Paulette Guajardo ____________ Michael T. Hunter ____________
Everett Roy ____________ Ben Molina ____________
Roland Barrera ____________ Greg Smith ____________
Gil Hernandez ____________
PASSED AND APPROVED, this the 27th day of August, 2019.
ATTEST:
__________________________________ _____________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
74853838.3 I-1
INDEX TO SCHEDULES AND EXHIBITS
Schedule I Refunded Obligations
Schedule II Approval Certificate
Exhibit A Paying Agent/Registrar Agreement
Exhibit B Purchase Contract
Exhibit C Escrow Agreement
Exhibit D Notice of Redemption
Exhibit E DTC Letter of Representations
74853838.3 Schedule I-1
SCHEDULE I
REFUNDED OBLIGATIONS
City of Corpus Christi, Texas General Improvement Bonds, Series 2010, dated July 1, 2010, in
the original principal amount of $13,685,000 and stated to mature on March 1 in each of the
years 2020 through 2030, in the aggregate principal amount of $8,630,000, to be redeemed on
__________, 2019.
74853838.3 Schedule II-1
SCHEDULE II
APPROVAL CERTIFICATE
See Tab No. ___
74853838.3 A-1
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
See Tab No. ___
74853838.3 B-1
EXHIBIT B
PURCHASE CONTRACT
See Tab No. ___
74853838.3 C-1
EXHIBIT C
ESCROW AGREEMENT
See Tab No. ___
74853838.3 D-1
EXHIBIT D
NOTICE OF REDEMPTION
See Tab No. ___
74853838.3 E-1
EXHIBIT E
DTC LETTER OF REPRESENTATIONS
See Tab No. ___
AGENDA MEMORANDUM
First Reading for the City Council Meeting of August 20, 2019
Second Reading for the City Council Meeting of August 27, 2019
______________________________________________________________________
DATE:August 2, 2019
TO:Peter Zanoni, City Manager
THRU:Constance P. Sanchez, Interim Assistant City Manager
FROM:Alma Casas, Interim Director of Financial Services
AlmaC@cctexas.com
(361) 826-3610
CAPTION:
Ordinance authorizing the issuance of “City of Corpus Christi, Texas General Improvement
Refunding Bonds, Taxable Series 2019” related to Airport improvements in an amount not to
exceed $4,000,000 and authorizing other matters incident and related thereto.
PURPOSE:
The City plans on issuing $4,000,000 of General Improvement Refunding Bonds (taxable) for
savings. The amount of bond issuance included in the ordinance includes estimated costs of
issuance and accounts for any fluctuations in the bond market at the time of pricing.
BACKGROUND AND FINDINGS:
In June 2010, the City of Corpus Christi issued $5,500,000 of Combination Tax and Surplus
Airport Revenue Certificates of Obligation (taxable) for the purpose of financing costs
associated with making permanent public improvements to the City’s Airport System. These
bonds are currently callable and because of favorable market conditions, City staff is
recommending that the outstanding balance of these bonds of $3,815,000 be refunded for
savings. Net present value savings is estimated to be 14.6% or approximately $560,000.
Because of the fluctuating conditions in the municipal bond market and to ensure that all legal
documents are executed on a timely basis, our financial advisor has recommended that the City
Council delegate to the City Manager, Assistant City Managers, and the Director of Financial
Services - including any person serving in any of the foregoing capacities on an interim or non-
permanent basis (the “Authorized Officials”) the authority to effect the sale of the bonds subject
to the following parameters: (1) the principal amount in total of all bonds sold may not exceed
$4,000,000; (2) the refunding will result in a net present value savings of at least 3.00%; and (3)
the true interest rate shall not exceed 5% per year. The City's bond counsel has confirmed that
Authorization for the Issuance of General Improvement
Refunding Bonds – Taxable
the City can delegate the sale of the bonds to the Delegated Officials in the manner outlined
above pursuant to the authority contained in Chapter 1371, as amended, Texas Government
Code.
ALTERNATIVES:
n/a
OTHER CONSIDERATIONS:
n/a
CONFORMITY TO CITY POLICY:
This item conforms to City policy.
EMERGENCY / NON-EMERGENCY:
Non-emergency
DEPARTMENTAL CLEARANCES:
Financial Services Department
Bond Counsel
City Attorney’s Office
FINANCIAL IMPACT:
□ Not Applicable □ Operating Expense X Revenue □ CIP
Project to Date Exp.Current Future
FISCAL YEAR:(CIP Only)Year Years TOTALS
Budget - - - -
Encumbered/Expended
amount of (date) - - - -
This item -4,000,000$ -4,000,000$
BALANCE -4,000,000$ -4,000,000$
FUND(S): CIP Fund (number to be determined after bond sale)
COMMENTS:
None.
RECOMMENDATION:
Staff recommends approval of the ordinance as presented.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
74859493.2
DRAFT 7/31/19
ORDINANCE NO. __________
ORDINANCE AUTHORIZING THE ISSUANCE OF “CITY OF
CORPUS CHRISTI, TEXAS GENERAL IMPROVEMENT REFUNDING
BONDS, TAXABLE SERIES 2019” IN AN AMOUNT NOT TO EXCEED
$4,000,000; MAKING PROVISIONS FOR THE PAYMENT AND
SECURITY THEREOF BY A LEVY OF A CONTINUING DIRECT
ANNUAL AD VALOREM TAX, WITHIN THE LIMITATIONS
PRESCRIBED BY LAW; PRESCRIBING THE FORM, TERMS,
CONDITIONS, AND RESOLVING OTHER MATTERS INCIDENT
AND RELATED TO THE ISSUANCE, SALE, AND DELIVERY OF THE
BONDS; AUTHORIZING THE EXECUTION OF A PAYING AGENT/
REGISTRAR AGREEMENT, A PURCHASE CONTRACT,
AND AN ESCROW AGREEMENT; COMPLYING WITH 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 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, sold, and delivered, and there are currently outstanding obligations in
the aggregate original principal amount of $3,815,000 being the obligations set forth on Schedule
I hereto which is incorporated by reference for all purposes to this ordinance (collectively, the
Refunded Obligations); and
WHEREAS, the City Council intends to issue an aggregate principal amount of
$__________ in general improvement refunding bonds the proceeds of which will be utilized to
provide for the (i) refunding of the Refunded Obligations and (ii) payment of the costs of
issuance of the general improvement refunding bonds; and
WHEREAS, pursuant to the provisions of Chapter 1207, as amended, Texas Government
Code (the Act), the City Council is authorized to issue 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, the Act permits that the deposit of the proceeds from the sale of the
refunding bonds be deposited directly with any designated escrow agent which is not the
depository bank of the City; and
WHEREAS, when firm banking arrangements have been made for the payment of
principal of and interest to the stated maturity or redemption dates of the Refunded Obligations,
then the Refunded Obligations shall no longer be regarded as outstanding except for the purpose
of receiving payment from the funds provided for such purpose and may not be included in or
74859493.2 -2-
considered to be an indebtedness of the City for the purpose of a limitation on outstanding
indebtedness or taxation or for any other purpose; and
WHEREAS, Wells Fargo Bank, National Association, Minneapolis, Minnesota (as
successor in interest to Wells Fargo Bank, National Association, Austin, Texas) currently serves
as the paying agent for the Refunded Obligations (hereinafter defined); and
WHEREAS, __________, __________, __________ (which is not the depository bank
of the City), is hereby appointed as the Paying Agent/Registrar (hereinafter defined) for the
general improvement refunding bonds; and
WHEREAS, __________, __________, __________ (which is not the depository bank
of the City), is hereby appointed as the Escrow Agent (hereinafter defined) for the general
improvement 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 refunding bonds herein authorized and issued to restructure the City’s
debt service and associated tax rates in the coming years, and such refunding will result in a net
present value benefit of $__________ (_____%) and a gross savings of $__________; and
WHEREAS, the City Council hereby finds and determines, pursuant to the authority
provided by the Act, to delegate to the Authorized Officials (hereinafter defined) the authority to
execute an Approval Certificate, to approve the final terms of the refunding bonds issued
hereunder; and
WHEREAS, the City Council hereby finds and determines that the issuance of the
general improvement refunding bonds for the purpose of refunding the Refunded Obligations is
in the best interests of the residents of the City, now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI
THAT:
SECTION 1. Authorization - Designation - Principal Amount - Purpose – Dated Date.
General improvement refunding bonds of the City, in one or more series, shall be and are hereby
authorized to be issued in the aggregate principal amount of
______________________________ AND NO/100 DOLLARS ($__________), to be
designated and bear the title of “CITY OF CORPUS CHRISTI, TEXAS GENERAL
IMPROVEMENT REFUNDING BONDS, TAXABLE SERIES 2019” (the Bonds), for the
purpose of providing funds for the (i) discharge and final payment of the Refunded Obligations
and (ii) payment of the costs of issuance of the Bonds, all in conformity with the laws of the
State of Texas, particularly the Act, and an ordinance adopted by the City Council on August 27,
2019, and the City’s Home Rule Charter.
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 each series of Bonds authorized herein and carrying out the procedures
specified in this Ordinance, including the following:
74859493.2 -3-
(1) Aggregate principal amount of the Bonds;
(2) Rate of interest to be borne on the principal amount of each maturity;
(3) Interest payment dates;
(4) Extraordinary, optional, and/or mandatory redemption provisions;
(5) Pricing of the Bonds, including use of premium, discount, underwriters’
compensation, and costs of issuance;
(6) Underwriting syndicate for the Bonds, including the identification of the
senior and book running manager and co-managers;
(7) Dated Date (hereinafter defined);
(8) Selection of the bond insurer, if any, with respect to the Bonds, if
determined by an Authorized Official to be advantageous to the City.
The Bonds issued under this Ordinance shall be issued within the following parameters:
(1) The total principal amount of the Bonds issued hereunder shall not exceed
$4,000,000;
(2) The maximum maturity for the Bonds issued hereunder shall be March 1,
2030;
(3) The true interest cost (as determined by federal arbitrage yield) applicable
to the Bonds issued hereunder shall not exceed a rate greater than 5.00% per annum; and
(4) The refunding of the Refunded Obligations shall result in a net present
value benefit to the City of not less than 3.00%, excluding the City contribution and costs
of issuance measured on a comparative basis to the prior debt service on the Refunded
Obligations.
Any Authorized Official, acting for and on behalf of the City, is authorized to execute the
Approval Certificate attached hereto as Schedule II. The execution of the Approval Certificate
relating to the Bonds issued hereunder shall evidence the sale date of the Bonds by the City to
the Purchasers (hereinafter defined) in accordance with the provisions of the Act and as set forth
in Schedule II. Upon execution of an Approval Certificate, Bond Counsel is authorized to
complete this Ordinance to reflect such final terms of the Bonds.
SECTION 2. Fully Registered Obligations - Authorized Denominations - Stated
Maturities - Interest Rates – Dated Date. The Bonds are issuable in fully registered form only,
without coupons; shall be dated __________, 2019 (the Dated Date) and shall be issued in
denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), shall be
lettered “R” and numbered consecutively from One (1) upward, and principal shall become due
and payable on March 1 in each of the years and in principal amounts (the Stated Maturities) and
74859493.2 -4-
bear interest on the unpaid principal amounts from the Closing Date (anticipated to be on or
about __________, 2019), or from the most recent Interest Payment Date (hereinafter defined) to
which interest has been paid or duly provided for, to Stated Maturity, at the per annum rates,
while Outstanding (hereinafter defined), in accordance with the following schedule:
Years of
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
The Bonds shall bear interest on the unpaid principal amounts from the Closing Date or
from the most recent Interest Payment Date to which interest has been paid or duly provided for,
to Stated Maturity 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 Bonds shall
be payable on March 1 and September 1 in each year (each, an Interest Payment Date),
commencing March 1, 2020, while the Bonds are Outstanding.
SECTION 3. Payment of Bonds - Paying Agent/Registrar.
The principal of and the interest on the Bonds, due and payable by reason of Stated
Maturity, or otherwise, shall be payable, without exchange or collection charges to the Holder
(hereinafter defined), appearing on the registration and transfer books maintained by the Paying
Agent/Registrar (hereinafter defined), 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 Bonds shall be without
exchange or collection charges to the Holder of the Bonds.
The selection and appointment of __________, __________, __________ 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 hereto, in
74859493.2 -5-
substantially final form, as Exhibit A, 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 shall be
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 corporate office of the successor Paying
Agent/Registrar.
Principal of and interest on the Bonds, due and payable by reason of Stated Maturity, 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 (hereinafter defined) for purposes of payment of
interest on the Bonds, (ii) on the date of surrender of the Bonds for purposes of receiving
payment of principal thereof at the Bonds’ 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 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 on the Bonds shall be payable only upon presentation and surrender of the
Bonds to the Paying Agent/Registrar at its corporate trust office (provided, however, with respect
to principal payments prior to the final Stated Maturity, the Bonds need not be surrendered to the
Paying Agent/Registrar, who will merely document this payment on an internal ledger
maintained by the Paying Agent/Registrar). Interest on the Bonds 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 Bonds (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 or interest on the Bonds shall be a Saturday,
a 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.
74859493.2 -6-
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 of a Bond 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. The Bonds are not subject to redemption prior to Stated
Maturity.
SECTION 5. Execution - Registration. The Bonds shall be executed on behalf of the
City by its Mayor or Mayor Pro Tem under the seal of the City reproduced or impressed thereon
and attested by its City Secretary. The signature of any of said officers 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, 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. A
Security Register relating to the registration, payment, transfer, or exchange of the Bonds 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 in the
Security Register the name and address of each Holder of the Bonds issued under and pursuant to
the provisions of this Ordinance. 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 Paying Agent/Registrar shall register and deliver, in the name of the
designated transferee or transferees, one or more new Bonds executed on behalf of, and
74859493.2 -7-
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 Bond or Bonds surrendered for transfer.
At the option of the Holder, Bonds may be exchanged for other Bonds 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 new Bonds executed on behalf of, and furnished by, the City 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 17 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 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,
interest rate, 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 Purchasers
or the designee thereof. The Initial Bond shall be the Bond submitted to the Office of the
Attorney General of the State of Texas for approval and certified and registered by the Office of
the Comptroller of Public Accounts of the State of Texas. At any time after the delivery of the
Initial Bond to the Purchasers, the Paying Agent/Registrar, upon written instructions from the
Purchasers, or the designee thereof, shall cancel the Initial Bond delivered hereunder and
exchange therefor definitive Bonds of like kind and denominations, Stated Maturities, principal
amounts, and bearing applicable interest rates, and shall be lettered “R” and numbered
consecutively from One (1) upward, for transfer and delivery to the Holders named and at the
addresses identified therefor; all pursuant to and in accordance with and pursuant to such written
instructions from the Purchasers, or the designee thereof, and such other information and
documentation as the Paying Agent/Registrar may reasonably require.
74859493.2 -8-
SECTION 8. Forms.
A. Forms Generally. The Bonds, the Registration Certificate of 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 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 insurance legends and 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, 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.
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74859493.2 -9-
B. Form of Definitive Bond.
REGISTERED REGISTERED
NO. _______ PRINCIPAL AMOUNT
$_____________
United States of America
State of Texas
Counties of Nueces, Aransas, Kleberg, and San Patricio
CITY OF CORPUS CHRISTI, TEXAS
GENERAL IMPROVEMENT REFUNDING BOND,
TAXABLE SERIES 2019
Dated Date: Interest Rate: Stated Maturity: CUSIP NO:
__________, 2019
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, acknowledges itself indebted to and hereby promises to pay to the
order of the Registered Owner named above (the Holder), or the registered assigns thereof, on
the Stated Maturity date specified above, the Principal Amount stated above and to pay interest
on the unpaid Principal Amount hereof (computed on the basis of a 360-day year of twelve
30-day months) from the Closing Date, or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for, to Stated Maturity,
while Outstanding, at the per annum rate specified above; such interest being payable on March
1 and September 1 in each year (each, an Interest Payment Date), commencing March 1, 2020.
Principal on this Bond shall be payable to the Holder, upon its presentation and surrender,
at the corporate trust office of the Paying Agent/Registrar executing the registration certificate
appearing hereon or its successor (provided, however, with respect to principal payments prior to
the final Stated Maturity, the Bonds need not be surrendered to the Paying Agent/Registrar, who
will merely document this payment on an internal ledger maintained by the Paying
Agent/Registrar). 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 fifteenth 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 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.
74859493.2 -10-
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 on August 27, 2019 (the Ordinance), for the purpose of providing funds for the (i)
discharge and final payment of the Refunded Obligations and (ii) payment of the costs of
issuance of the general improvement refunding bonds, under and in strict conformity with the
laws of the State of Texas, particularly Chapters 1207, as amended, Texas Government Code,
and the City’s Home Rule Charter.
As specified in the Ordinance, the Bonds are not subject to redemption prior to the Stated
Maturity.
The Bonds of this series are payable from the proceeds of an annual ad valorem tax
levied within the limitations prescribed by law upon all taxable property within the City.
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 for the payment of the Bonds; the terms and conditions relating to the
transfer or exchange of this Bond; 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 its Stated Maturity thereof, and deemed to be no longer
Outstanding thereunder; and for the other terms and provisions thereof. Capitalized terms used
herein have the same meanings assigned in the Ordinance.
As provided in the Ordinance and subject to certain limitations contained therein, this
Bond is transferable on the Security Register of the City, upon surrender of this Bond for transfer
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,
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
74859493.2 -11-
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 or in the issuance of this Bond 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 the issuance of this Bond 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 Bonds by the levy of a tax as aforestated. 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.
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74859493.2 -12-
IN WITNESS WHEREOF, the City has caused this Bond to be duly executed under its
official seal.
CITY OF CORPUS CHRISTI, TEXAS
__________________________________________
Mayor
ATTEST:
____________________________________
City Secretary
(CITY SEAL)
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74859493.2 -13-
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)
* NOTE TO PRINTER: Not to appear on printed Bonds
D. Form of Certificate of Paying Agent/Registrar to Appear on Definitive Bonds
Only.
REGISTRATION 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:
____________________________________
____________________, as Paying
Agent/Registrar
By: _______________________________
Authorized Signature
*NOTE TO PRINTER: Print on Definitive Bonds.
74859493.2 -14-
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:
____________________________________
F. 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:
(i) immediately under the name of the bond the headings “Interest Rate” and
“Stated Maturity” shall both be completed “as shown below”;
(ii) the first two paragraphs shall read as follows:
The City of Corpus Christi, Texas (the City), a body corporate and municipal corporation
located 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 (the Holder), or the registered assigns thereof, 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
Stated Maturity
Principal
Amounts ($)
Interest
Rates (%)
(Information to be inserted from schedule in Section 2 hereof).
and to pay interest on the unpaid principal installments hereof from the Closing Date (anticipated
to occur on or about __________, 2019), or from the most recent Interest Payment Date
(hereinafter defined) to which interest has been paid or duly provided for until the principal
74859493.2 -15-
amount has become due and payment thereof has been made or duly provided for, to Stated
Maturity, while Outstanding, at the per annum rates of interest specified above computed on the
basis of a 360-day year of twelve 30-day months; such interest being payable on March 1 and
September 1 of each year (each, an Interest Payment Date) commencing March 1, 2020.
Principal of this Bond shall be payable to the Holder hereof, upon presentation and
surrender, to Stated Maturity or prior redemption, at the corporate trust office of __________,
__________, __________ (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 fifteenth day of the
month next preceding an 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 the Holder hereof at the Holder’s risk and expense.
[END OF FORMS]
G. Insurance Legend. If bond insurance is obtained by the City or the Purchasers,
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 19 and 36 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 Approval Certificate shall mean a written instrument from time to time
executed by an Authorized Official in accordance with Section 1 of this Ordinance.
B. The term Authorized Official shall mean the City Manager of the City, each
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).
C. The term Bond Fund shall mean the special fund created and established by the
provisions of Section 10 of this Ordinance.
D. The term Bonds shall mean the $__________ “CITY OF CORPUS CHRISTI,
TEXAS GENERAL IMPROVEMENT REFUNDING BONDS, TAXABLE SERIES 2019”
authorized by this Ordinance.
74859493.2 -16-
E. The term City shall mean City of Corpus Christi, located in the Counties of
Nueces, Aransas, Kleberg, and San Patricio, Texas and, where appropriate, the City Council of
the City.
F. The term Closing Date shall mean the date of physical delivery of the Initial Bond
in exchange for the payment in full by the Purchasers.
G. 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.
H. The term Depository shall mean an official depository bank of the City.
I. The term Government Securities 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.
J. The term Holder or Holders shall mean the registered owner, whose name
appears in the Security Register, for any Bond.
K. The term Interest Payment Date shall mean the date interest is payable on the
Bonds, being March 1 and September 1 of each year, commencing March 1, 2020, while any of
the Bonds remain Outstanding.
L. The term Ordinance shall mean this ordinance adopted by the City Council of the
City on August 27, 2019.
M. The term Outstanding when used in this Ordinance with respect to Bonds shall
mean, as of the date of determination, all Bonds issued and delivered under this Ordinance,
except:
74859493.2 -17-
(1) those Bonds canceled by the Paying Agent/Registrar or delivered to the
Paying Agent/Registrar for cancellation;
(2) those Bonds for which payment has been duly provided by the City in
accordance with the provisions of Section 17 of this Ordinance; and
(3) those Bonds that have been mutilated, destroyed, lost, or stolen and
replacement Bonds have been registered and delivered in lieu thereof as provided in
Section 16 of this Ordinance.
N. The term Purchasers shall mean the initial purchasers of the Bonds named in
Section 17 of this Ordinance.
O. The term Stated Maturity shall mean the annual principal payments of the Bonds
payable on March 1 of each year as set forth in Section 2 of this Ordinance.
SECTION 10. Bond Fund; Investments. For the purpose of paying the interest on and to
provide a sinking fund for the payment, and retirement of the Bonds, there shall be and is hereby
created a special fund to be designated “GENERAL IMPROVEMENT REFUNDING BONDS,
TAXABLE SERIES 2019 INTEREST AND SINKING FUND” (the Bond Fund), which Bond
Fund shall be kept and maintained at the Depository, and money deposited in such Bond Fund
shall be used for no other purpose and shall be maintained as provided in Section 22. Authorized
Officials of the City are hereby authorized and directed to make withdrawals from the Bond
Fund sufficient to pay the principal of, premium, if any, and interest on the Bonds as the same
become due and payable, or the purchase price thereof, and shall cause to be transferred to the
Paying Agent/Registrar from money on deposit in the Bond Fund an amount sufficient to pay the
amount of principal and/or interest stated to mature on the Bonds, 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 Bonds.
Pending the transfer of funds to the Paying Agent/Registrar, money deposited in any fund
created and established pursuant to the provisions of 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, Small
Business Administration, Federal National Mortgage Association, Federal Home Loan Mortgage
Corporation, or Federal Housing Administration; provided that all such deposits and investments
74859493.2 -18-
shall be made in such a manner that the money required to be expended from any fund will be
available at the proper time or times. All interest and income derived from deposits and
investments in such fund 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
Bonds.
SECTION 11. Tax Levy – Deposits to Bond Fund – Surplus Bond Proceeds. To provide
for the payment of the Debt Service Requirements on the Bonds being (i) the interest on the
Bonds 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 fiscal
year commencing October 1, 2020 and each succeeding year thereafter while the Bonds 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 Bond Fund and are thereafter pledged to the payment of the
Bonds. The City Council hereby declares its purpose and intent to provide and levy a tax legally
and fully sufficient to pay the Debt Service Requirements, it having been determined that the
existing and available taxing authority of the City for such purpose is adequate to permit a
legally sufficient tax in consideration of all other outstanding indebtedness and other obligations
of the City.
The City hereby covenants and agrees to cause to be deposited in the Bond Fund prior to
a principal and interest payment date for the Bonds, from the annual levy of an ad valorem tax or
from other lawfully available funds, amounts sufficient to fully pay and discharge promptly each
installment of interest and principal of the Bonds as the same accrues or matures or comes due
by reason of Stated Maturity.
Accrued interest, if any, received from the Purchasers of the Bonds, along with any taxes
collected pertaining to the Refunded Obligations, after the Closing Date, shall be deposited to the
Bond Fund and ad valorem taxes levied and collected for the benefit of the Bonds shall be
deposited to the Bond Fund. 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 sum otherwise required to be deposited in
the Bond Fund from ad valorem taxes.
SECTION 12. Security for 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 13. 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
74859493.2 -19-
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 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 14. 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 15. Cancellation. All Bonds surrendered for payment, 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 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 16. 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.
74859493.2 -20-
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 and charges (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 17. Sale of Bonds – Purchase and Investment Letter Approval – Use of
Proceeds. The Bonds authorized by this Ordinance are hereby sold by the City to __________,
___________, __________ (the Purchasers, and having all the rights, benefits, and obligations
of a Holder) in accordance with the provisions of a Purchase and Investment Letter dated
__________, 2019 (the Purchase Contract) attached hereto as Exhibit B and incorporated herein
by reference as a part of this Ordinance for all purposes. The Initial Bond shall be registered in
the name of ____________________. The pricing and terms of the sale of the Bonds are hereby
found and determined to be the most advantageous reasonably obtainable by the City. Each
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 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.
SECTION 18. Escrow Deposit Letter Approval and Execution; Proceeds of Sale;
Contribution by City. The Escrow Deposit Letter dated as of August 27, 2019 to be effective
upon the initial delivery of the Bonds to the Purchasers (the Escrow Agreement) between the
City and __________, __________, __________ (the Escrow Agent), attached hereto as
Exhibit C and incorporated herein by reference as a part of this Ordinance 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 any
Authorized Official 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 Escrow Agreement herein approved.
74859493.2 -21-
Furthermore, any Authorized Official or any one or more of said officials, 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 referenced in the Escrow
Agreement and the initial 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
GENERAL OBLIGATION REFUNDING BOND, TAXABLE SERIES 2019 ESCROW
FUND” (the Escrow Fund), including the execution of the subscription forms for the purchase
and issuance of the “United States Treasury Securities - State and Local Government Series”, if
any, for deposit to the Escrow Fund; all as contemplated and provided by the provisions of the
Act, this Ordinance, and the Escrow Agreement.
Immediately following the delivery of the Bonds, the 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 and deposited with the
place of payment (of the Refunded Obligations) in an account in the name of the City and
applied for the purposes of providing for the payment of the costs and expenses incurred in
connection therewith or deposited in the Bond Fund for the Bonds, all in accordance with written
instructions from the Authorized Officials.
SECTION 19. Redemption of Refunded Obligations. The Refunded Obligations are
subject to redemption prior to their stated maturities at the price of par, premium, if any, and
accrued interest to the date of redemption. The Mayor 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
date set forth on Schedule I attached to this Ordinance, 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 D and are incorporated herein by reference for all purposes. The paying agent 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 ordinance
authorizing the issuance of the Refunded Obligations.
SECTION 20. Taxable Obligations. The Bonds 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 Bonds is not excludable from the gross income of the holders thereof for
federal income tax purposes.
SECTION 21. Control and Custody of Bonds. 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 including the printing and supply of
definitive Bonds and shall take and have charge and control of the Initial Bond pending its
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 thereof to the Purchasers.
74859493.2 -22-
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 of the State
of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas and,
together with the City’s Bond Counsel and the Paying Agent/Registrar, to make the necessary
arrangements for the delivery of the Initial Bond to the Purchasers and the initial exchange
thereof for definitive Bonds.
SECTION 22. 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 pledge
of taxes levied 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; and/or (ii)
Government Securities shall have been irrevocably deposited in trust with the Paying
Agent/Registrar, or an authorized escrow agent, which Government Securities 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. In the event of a defeasance of the Bonds, the City shall deliver a
certificate from its financial advisor, the Paying Agent/Registrar, an independent accounting
firm, 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.
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
74859493.2 -23-
the right to call the defeased Bonds for redemption; (2) gives notice of the reservation of that
right to the owners of the defeased Bonds immediately following the defeasance; (3) directs that
notice of the reservation be included in any redemption notices that it authorizes; and (4) at the
time of the redemption, satisfies the conditions of (i) or (ii) above with respect to such defeased
debt as though it was being defeased at the time of the exercise of the option to redeem the
defeased Bonds, after taking the redemption into account in determining the sufficiency of the
provisions made for the payment of the defeased Bonds.
SECTION 23. Printed Opinion. The Purchasers’ obligation to accept delivery of the
Bonds is subject to its being furnished a final opinion of Norton Rose Fulbright US LLP, as
Bond Counsel, approving the Bonds as to their validity, said opinion to be dated and delivered as
of the date of initial delivery and payment for the Bonds. Printing of a true and correct
reproduction of said opinions on the reverse side of each of the Bonds, with the appropriate
certificate pertaining thereto executed by facsimile signature of the City Secretary of the City, is
hereby approved and authorized.
SECTION 24. CUSIP Numbers. CUSIP numbers may be printed or typed on the Bonds.
It is expressly provided, however, that the presence or absence of CUSIP numbers on the 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 Bonds.
SECTION 25. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 26. 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, be binding on the City and its successors and assigns, and 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; however, 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, premium, if any, 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, premium, if any, 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 27. 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
74859493.2 -24-
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, the Paying
Agent/Registrar, Bond Counsel, the Purchasers, and the Holders.
SECTION 28. Inconsistent Provisions. All ordinances, orders, or 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 contained herein.
SECTION 29. 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 30. 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 31. 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 32. Incorporation of Preamble Recitals. The recitals contained in the
preamble to this Ordinance 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 33. 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 pertaining to the payment, exchange,
registration, 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 herein by
reference as fully as if recopied in its entirety in this Ordinance.
SECTION 34. 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 35. Unavailability of Authorized Publication. If, because of the temporary or
permanent suspension of any newspaper, journal, or other publication, or, for any reason,
publication of notice cannot be made meeting any requirements herein established, any notice
required to be published by the provisions of this Ordinance shall be given in such other manner
and at such time or times as in the judgment of the City or of the Paying Agent/Registrar shall
most effectively approximate such required publication and the giving of such notice in such
manner shall for all purposes of this Ordinance be deemed to be in compliance with the
requirements for publication thereof.
74859493.2 -25-
SECTION 36. No Recourse Against City Officials. No recourse shall be had for the
payment of principal of, premium, if any, or interest on any Bond or for any claim based thereon
or on this Ordinance against any official of the City or any person executing any Bond.
SECTION 37. Continuing Disclosure of Information.
A. Definitions.
As used in this Section, the following terms have the meanings ascribed to such terms
below:
Rule means SEC Rule 15c2-12, as amended from time to time.
SEC means the United States Securities and Exchange Commission.
The Bonds are being sold pursuant to a private placement with the Purchasers, in
denominations of $100,000 or any integral multiple of $5,000 in excess thereof, to less than
thirty-five sophisticated investors, and therefore the Rule is not applicable to the offering of the
Bonds. Accordingly, no contract to provide continuing disclosure information after the issuance
of the Bonds has been made by the City with investors.
SECTION 38. Book-Entry Only System .
The Bonds may initially be registered so as to participate in a securities depository
system (the DTC System) with the Depository Trust Company, New York, New York, or any
successor entity thereto (DTC), as set forth herein. Each Stated Maturity of the 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
74859493.2 -26-
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, the Depository, and DTC Participants of the availability
within a reasonable period of time through DTC of bond certificates, and the Bonds shall no
longer be restricted to being registered in the name of Cede & Co., as nominee of DTC. At that
time, the City may determine that the Bonds shall be registered in the name of and deposited
with a successor depository operating a securities depository system, as may be acceptable to the
City, or such depository’s agent or designee, and if the City and the Paying Agent/Registrar do
not select such alternate securities depository system then the Bonds may be registered in
whatever name or names the Holders of Bonds transferring or exchanging the Bonds shall
designate, in accordance with the provisions hereof.
Notwithstanding any other provision of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on such Bond and all notices with respect to such
Bond shall be made and given, respectively, in the manner provided in the Representation Letter.
SECTION 39. 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, Bond Counsel to the City, and/or Financial Advisor to the City to provide to
the Texas MAC information and documentation requested by the Texas MAC relating to the
Bonds; 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 40. Delegation Authorization Pursuant to HB 1295. Though such parties may
be identified, and the entry into a particular contract may be authorized herein, the City Council,
pursuant to the Act, and other applicable law, hereby delegates to any Authorized Official the
authority to independently select the counterparty to any agreement with any paying
agent/registrar, escrow agent, open market securities bidding agent, escrow fund winning bidder,
verification agent, rating agency, securities depository, or any other contract that is determined
by the City Manager, 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
74859493.2 -27-
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 Contract on behalf
and as the act and deed of the City. The City Council has not participated in the selection of any
of the business entities which are counterparties to the Ancillary Bond Contracts.
SECTION 41. Accounting Reports. The City shall provide annually to the Purchasers, for
so long as they are the holders of the Bonds, within 270 days after the end of each fiscal year
ending in or after 2019, financial information and operating date with respect to the City;
provided that such financial statements so to be provided shall be (1) prepared in accordance
with the generally accepted accounting principles, or such other accounting principles as the City
may be required to employ from time to time pursuant to Texas law or regulations, and (2)
audited, if the City commissions an audit of such statements and the audit is completed within
the period during which they must be provided. If the audit of such financial statements is not
complete within such period, then the City shall provide (1) unaudited financial statements for
the applicable fiscal year within 270 days after the end of such year, and (2) audited financial
statements for the applicable fiscal year to the Purchasers when and if the audit report on such
statements become available.
SECTION 42. 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 Purchase Contract, the Paying Agent/Registrar Agreement,
and the Escrow Agreement. In addition, prior to the initial delivery of the Bonds, any
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 43. 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.
[The remainder of this page intentionally left blank.]
S-1
PASSED, APPROVED AND ADOPTED on the 27th day of August, 2019.
CITY OF CORPUS CHRISTI, TEXAS
__________________________________________
Mayor
ATTEST:
City Secretary
(CITY SEAL)
APPROVED THIS 27th DAY OF AUGUST, 2019:
____________________________________
Miles Risley, City Attorney
[The remainder of this page intentionally left blank.]
S-2
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 27th day of
August, 2019, authorizing the issuance of the City’s General Improvement Refunding Bonds,
Taxable Series 2019, 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 27th day of August, 2019.
City Secretary
(CITY SEAL)
S-3
The foregoing ordinance was read for the first time and passed to its second reading on this the
20th day of August, 2019, by the following vote:
Joe McComb ____________ Rudy Garza ___________
Paulette Guajardo ____________ Michael T. Hunter ____________
Everett Roy ____________ Ben Molina ____________
Roland Barrera ____________ Greg Smith ____________
Gil Hernandez ____________
That the foregoing ordinance was read for the second time and passed finally on this the 27th day
of August, 2019, by the following vote:
Joe McComb ____________ Rudy Garza ___________
Paulette Guajardo ____________ Michael T. Hunter ____________
Everett Roy ____________ Ben Molina ____________
Roland Barrera ____________ Greg Smith ____________
Gil Hernandez ____________
PASSED AND APPROVED, this the 27th day of August, 2019.
ATTEST:
__________________________________ _____________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
74859493.2 I-1
INDEX TO SCHEDULES AND EXHIBITS
Schedule I Refunded Obligations
Schedule II Approval Certificate
Exhibit A Paying Agent/Registrar Agreement
Exhibit B Purchase Contract
Exhibit C Escrow Agreement
Exhibit D Notice of Redemption
Exhibit E DTC Letter of Representations
74859493.2 Schedule I-1
SCHEDULE I
REFUNDED OBLIGATIONS
City of Corpus Christi, Texas Combination Tax and Surplus Airport Revenue Certificates of
Obligation, Taxable Series 2010, dated July 1, 2010, in the original principal amount of
$5,500,000 and stated to mature on March 1 in each of the years 2020 through 2025 and March
1, 2030, in the aggregate principal amount of $3,815,000, to be redeemed on __________, 2019.
74859493.2 Schedule II-1
SCHEDULE II
APPROVAL CERTIFICATE
See Tab No. ___
74859493.2 A-1
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
See Tab No. ___
74859493.2 B-1
EXHIBIT B
PURCHASE CONTRACT
See Tab No. ___
74859493.2 C-1
EXHIBIT C
ESCROW AGREEMENT
See Tab No. ___
74859493.2 D-1
EXHIBIT D
NOTICE OF REDEMPTION
See Tab No. ___
74859493.2 E-1
EXHIBIT E
DTC LETTER OF REPRESENTATIONS
See Tab No. ___
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM :Robert Rocha, Fire Chief
Rrocha@cctexas.com
(361) 826-3932
Kim Baker, Director of Contracts and Procurement
KimB2@cctexas.com
(361) 826-3169
CAPTION:
Motion authorizing a three-year service agreement with Richard E. Cruz, dba Rick’s Detail
and Body Shop, for vehicle paint and body repairs of fleet units assigned to the Fire
Department in an amount not to exceed $254,700.00, effective upon issuance of a notice
to proceed, with funding available in the General Fund.
SUMMARY:
This motion authorizes a contract with Richard E. Cruz, dba Rick’s Detail and Body Shop
to provide vehicle paint and body repairs for the Fire Department for an amount not to
exceed $254,700.00. Richard E. Cruz, dba Rick’s Detail and Body Shop is the currently
the provider of these services for the Fire Department through a service agreement that
will soon expire. These services are necessary to cover all aspects of maintaining the
Corpus Christi Fire Department Fleet Maintenance Division’s Fleet units.
BACKGROUND AND FINDINGS:
The Contractor shall cover all aspects of maintaining the Fire Department Fleet
Maintenance Divisions Fleet units. The Fleet units include sedans, pickup trucks,
ambulance units, and brush trucks. These units require periodic painting, detailing, and
collision damage repair to sustain their maintenance requirements. Repairs include
welding and custom fabrication, power door locks, rhino lining, undercoating and rust
proofing, glass replacement, headlight restoration, LED light replacement, window tinting,
Vehicle Paint and Body Repairs for CCFD
AGENDA MEMORANDUM
Action Item for the City Council Meeting August 27, 2019
rust repair, and fiberglass repair.
The Contract and Procurement Department conducted a competitive Request for Bid
process to obtain bids for a new contract. The City received one responsive, responsible
bid, and is recommending the award to Richard E. Cruz, dba Rick’s Detail and Body Shop.
ALTERNATIVES:
An alternative to accepting this one responsive, responsible bid would be to reject the bid
and request the services be competitively bid again. However, the bid from Richard E.
Cruz, dba Rick’s Detail and Body Shop is responsive and responsible, and within budget.
In addition, Richard E. Cruz, dba Rick’s Detail and Body Shop has provided this type of
service for the City and has done exceptional and reliable work at a competitive cost.
FISCAL IMPACT:
The financial impact is $7,075.00 for the remainder of this fiscal year, with the remaining
cost of $247,625.00 budgeted in future years through the annual budget process.
Funding Detail:
Fund:1020 General
Organization/Activity:12050 Fire Apparatus & Shop
Mission Element:093 Respond to Emergency Calls
Project # (CIP Only): N/A
Account:530100 Vehicle Repairs
RECOMMENDATION:
Staff recommends approval of this motion authorizing a three-year service agreement
with Richard E. Cruz, dba Rick’s Detail and Body Shop for vehicle paint and body repairs
for the Fire Department.
LIST OF SUPPORTING DOCUMENTS:
Bid Tabulation
Service Agreement
Service Agreement Standard Form Page 1 of 7
Approved as to Legal Form July 11, 2019
SERVICE AGREEMENT NO. 2243
Vehicle Paint and Body Repair for CCFD
THIS Vehicle Paint and Body Repair for CCFD Agreement ("Agreement") is entered
into by and between the City of Corpus Christi, a Texas home-rule municipal
corporation (“City”) and Richard E. Cruz, dba Rick's Detail and Body Shop
(“Contractor"), effective upon execution by the City Manager or the City Manager’s
designee (“City Manager”).
WHEREAS, Contractor has bid to provide Vehicle Paint and Body Repair for CCFD
in response to Request for Bid/Proposal No. 2243 (“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 Vehicle Paint and Body Repair for CCFD
(“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 three years, with performance commencing upon the
date of issuance of a notice to proceed from the Contract Administrator or the
Contracts and Procurement Department. The parties may mutually extend the
term of this Agreement for up to zero additional zero-year periods (“Option
Period(s)”), provided, the parties do so by written amendment prior to the
expiration of the original term or the then-current Option Period. The City’s
extension authorization must be executed by the City Manager or designee.
3.Compensation and Payment. This Agreement is for an amount not to exceed
$254,700, 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. Contractor shall invoice no more
frequently than once per month. 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. Any amount not expended during the initial term or any option period
may, at the City’s discretion, be allocated for use in the next option period.
Invoices will be mailed to the following address with a copy provided to the
Contract Administrator:
Service Agreement Standard Form Page 2 of 7
Approved as to Legal Form July 11, 2019
City of Corpus Christi
Attn: Accounts Payable
P.O. Box 9277
Corpus Christi, Texas 78469-9277
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:
Ernie Villarreal
Fire Department
361-826-8424
ErnieV@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 that 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 Services will not be
rendered until the Contractor receives the signed purchase release order.
Service Agreement Standard Form Page 3 of 7
Approved as to Legal Form July 11, 2019
7.Inspection and Acceptance. City may inspect all Services and products supplied
before acceptance. Any Services or products 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.
(A)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.
(B)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.
(C)Contractor warrants that all Services will be performed in accordance
with the standard of care used by similarly situated contractors performing similar
services.
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.
Service Agreement Standard Form Page 4 of 7
Approved as to Legal Form July 11, 2019
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
unless the subcontractors were named in the bid or proposal or in an Attachment
to this Agreement, 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. The City may, at the City’s sole discretion, choose not to
accept Services performed by a subcontractor that was not approved in
accordance with this paragraph.
13. Amendments. This Agreement may be amended or modified only in writing
executed by authorized representatives of both parties.
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 applicable 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: Ernie Villarreal
Fire Captain
1501 Holly Road, Corpus Christi, TX 78417
Phone: 361-826-8424
Fax: 361-826-4451
IF TO CONTRACTOR:
Rick's Detail and Body Shop
Attn: Richard E. Cruz
Owner
5146 Ayers, Corpus Christi, TX 78415
Phone: 361-855-4490
Fax: 361-855-4491
Service Agreement Standard Form Page 5 of 7
Approved as to Legal Form July 11, 2019
17. CONTRACTOR SHALL FULLY 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
WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF
PERSONAL INJURIES, 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 A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS
AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT
ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS
EMPLOYEES OR AGENTS. 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 OR RESULTING 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
comply with any of the terms 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 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. Owner’s Manual and Preventative Maintenance. Contractor agrees to provide a
copy of the owner’s manual and/or preventative maintenance guidelines or
instructions if available for any equipment purchased by the City pursuant to this
Agreement. Contractor must provide such documentation upon delivery of such
equipment and prior to receipt of the final payment by the City.
Service Agreement Standard Form Page 6 of 7
Approved as to Legal Form July 11, 2019
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 (excluding attachments and exhibits);
B. its attachments;
C. the bid solicitation document including any addenda (Exhibit 1); then,
D. 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 if required
by said statute.
24. Governing Law. Contractor agrees to comply with all federal, Texas, and City laws
in the performance of this Agreement. 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.
Attachment A: Scope of Work
General Requirements/Background Information
1.0 The Contractor shall provide vehicle paint and body repairs on staff units, command
staff units, limited ambulance units, and brush trucks for the Corpus Christi Fire
Department (CCFD), as outlined in this Scope of Work.
1.1 Scope of Work
A.CCFD shall receive priority service on an as needed basis over other
vehicles being serviced.
B.All repairs will be done at the Contractors place of business.
C.City staff will be responsible for all delivery and retrieval of City vehicles
and the Contractor will not come onto City property.
D.The Contractor is required to have a paint booth with an extinguishing
system.
E.The Contractor is required to perform the following work on wrecked or
damaged units:
1.Collision repair and complete paint
2.All rust repair
3.Welding and custom fabrication
4.Restorations on interior paint
5.Diagnosis and repair of electrical systems due to vehicle accidents
6.Repair power door locks
7.Fiberglass repairs
8.Color matching – computer analyzed color matching system
9.Glass replacement due to vehicle accident
10. Headlight restoration
11. LED light replacement
12. Vehicle audio installation
13. Installation of all aftermarket accessories
Page 1 of 3
D.The Contractor shall install window tinting as per DOT specifications.
E.The Contractor must have a dustless media blasting and soda blaster
system.
F.The Contractor shall install Rhino lining on units.
G.The Contractor shall install undercoating and rust proofing.
H.The Contractor shall provide complete vehicle detailing.
1.Pressure washing of underside of vehicles
2.Shampoo interior of vehicles
3.Steam clean engine compartments
4.Buff and wax exterior of vehicle
5.Paint sealant
6.Small vehicles consist of four door sedans/. Medium vehicles consist of
small SUV’s, small pickups. Large vehicles consist of large pickup trucks,
Large SUV’s.
7.If Contractor estimates additional work will be involved, Contract
Administrator will be notified prior to work being completed.
I.The Contractor shall provide a detailed description of repair with
estimated cost of repair prior to starting repair.
J.The Contractor shall provide an itemized description on invoice of repair.
1.2 Estimates and Invoicing
A.The Contractor shall provide a detailed description of repair with
estimated cost.
B.If Contractor estimates additional work will be beyond the original
estimates, the Contract Administrator will be notified for authorization prior
to work being performed.
Page 2 of 3
C.The Contractor shall provide an itemized description on the invoice of the
repair.
D.Work will be paid for at the unit prices outlined in the contract.
E.Allowance have been set up for unquantifiable items such as paint and
supplies and part for vehicle repairs. These items will be paid at cost plus
markup as allowed by contract. Receipts are required for all costs that
fall under these areas.
1.3 Work Site and Conditions
The work shall be performed at an offsite location. Location shall be within
the Corpus Christi city limits. The Contractor location must meet adopted
2015 international fire codes.
1.4 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.
1.5 Warranty
Lifetime warranty on workmanship.
Page 3 of 3
CITY OF CORPUS CHRISTI
CONTRACTS AND PROCUREMENT
DEPARTMENT
BID FORM
RFB No. 2243
Vehicle Paint and Body Repair for CCFD
Date: J:u \ � \ 1 2..0l q
Bidder: 1:)\ cJ( \5 Deb·,\,c\� Authorized
Signature:
PAGE 1 OF 2
1.Refer to "Instructions to Bidders" and Contract Terms and Conditions beforecompleting 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 Contracts and Procurement 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
applicable governmental agencies.
d.Bidder acknowledges receipt and review of all addenda for this RFB.
Item Description UNIT QTY
1 Paint Labor HR 450
Collision Repair to include Rust
2 Repair, Welding and Custom HR 450
Fabrication
3 Restoration on interior paint HR 150
4 Diagnosis and repair of electrical HR 90 systems
5 Repairs of Power door locks HR 60
6 Window Tinting-Front Windows PR 75
7 Window Tinting-Rear Windows PR 75
8 Window Tinting-Back Window EA 75
9 Fiberglass Repairs Labor HR 60
10 Media Blasting and Soda Blasting MIN 7200
11 Powder Coating HR 30
12 Rhino Lining of Pick up -Short Bed EA 15
Unit Price
_'\b '-\ � . co
11(oS.°o
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'!\ 80 _w
-41 (os.oo
� 1S • 'vO <&15.00
& l75 .�v �3.w
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Total Price
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I
$ 2_q ·1.c:.n. � '1 '1CO _w
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�, 200.
'& t.\. 9-. ill . 00 "" '-t i lS. c;v
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1, ;=., .--i c-Jo . OJ
Attachment B: Bid/Pricing Schedule
Page 2 of 2
Attachment C: Insurance and Bond Requirements
A.CONTRACTOR’S LIABILITY INSURANCE
1.Contractor must not commence work under this agreement until all insurance
required has been obtained and such insurance has been approved by the City.
Contractor must not allow any subcontractor Agency to commence work until all
similar insurance required of any subcontractor Agency has been obtained.
2.Contractor must furnish to the City’s Risk Manager and Contract Administer one (1)
copy of Certificates of Insurance (COI) 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 is
required on all applicable policies. Endorsements must be provided with COI. Project
name and or number must be listed in Description Box of COI.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-written day notice of cancellation,
required on all certificates or by
applicable policy endorsements
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
GARAGE KEEPERS PHYSICAL DAMAGE
COVERAGE including:
1.Physical Damage on a Direct
Primary Basis
Actual Cash Value of Vehicles While in
Care, Custody or Control
3.In the event of accidents of any kind related to this agreement, Contractor must
furnish the Risk Manager with copies of all reports of any accidents within 10 days of
the accident.
B.ADDITIONAL REQUIREMENTS
Page 1 of 3
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 an amount sufficient to assure
that all workers’ compensation obligations incurred by the Contractor will be
promptly met.
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 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 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, volunteers, and elected
representatives as additional insured by endorsement, as respects operations,
completed operation 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
suspension, cancellation, non-renewal or material change 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 suspension, cancellation, or non-renewal 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.
Page 2 of 3
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 remove
the exhibit hereunder, and/or withhold any payment(s) if any, 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 agreement.
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 agreement.
9.It is understood and agreed that the insurance required is in addition to and separate
from any other obligation contained in this agreement.
2019 Insurance Requirements
Ins. Req. Exhibit 4-G
Contracts for General Services – Services Performed Offsite – Garage Keepers
05/13/2019 Risk Management – Legal Dept.
No Bond is required for this service.
Page 3 of 3
Attachment D: Warranty Requirements
Lifetime warranty on workmanship.
Page 1 of 1
City of Corpus Christi Bid Tabulation
Contracts and Procurement Department RFB No. 2243
Buyer: Minerva Alvarado Vehicle Paint and Body Repair for CCFD
Item Description Unit QTY Unit Price Total Price
1 Paint Labor HR 450 48.00$ 21,600.00$
2 Collision Repair to include Rust Repair,
Welding and Custom Fabrication
HR 450 65.00$ 29,250.00$
3 Restoration on interior paint HR 150 48.00$ 7,200.00$
4 Diagnosis and repair of electrical
systems HR 90 80.00$ 7,200.00$
5 Repairs of Power door locks HR 60 80.00$ 4,800.00$
6 Window Tinting-Front Windows PR 75 65.00$ 4,875.00$
7 Window Tinting-Rear Windows PR 75 75.00$ 5,625.00$
8 Window Tinting-Back Window EA 75 75.00$ 5,625.00$
9 Fiberglass Repairs Labor HR 60 125.00$ 7,500.00$
10 Media Blasting and Soda Blasting MIN 7200 3.00$ 21,600.00$
11 Powder Coating HR 30 50.00$ 1,500.00$
12 Rhino Lining of Pick up - Short Bed EA 15 350.00$ 5,250.00$
13 Phino Lining of Pick up - Long Bed EA 15 469.00$ 7,035.00$
14 Undercoating and Rust Proofing EA 30 189.00$ 5,670.00$
15 Color Matching EA 150 0 $0.00
16 Glass Replacement for Accidents HR 30 125.00$ 3,750.00$
17 Headlight Restoration PR 60 50.00$ 3,000.00$
18 Vehicle Audio9 Installation HR 9 80.00$ 720.00$
19 Labor for Installation of all aftermarket
accessories HR 120 75.00$ 9,000.00$
20 Complete Vehicle Detailing-Small
Vehicle EA 15 150.00$ 2,250.00$
21 Complete Vehicle Detailing-Medium
Vehicle EA 18 200.00$ 3,600.00$
22 Complete Vehicle Detailing-Large
Vehicle EA 45 250.00$ 11,250.00$
Item Description % of
Markup
Allowance +
Markup
23 Paint and Supplies 20% $ 14,400.00
24 Parts/Materials 20% $ 72,000.00
Total $254,700.00
Richard E. Cruz, dba
Rick's Detail and Body Shop
Corpus Christi, TX
Estimated
Spend
$60,000
$12,000
Project No.:18021A 1 JS/LH
Legistar No.: 19-1134 Rev. 5– 08/19/2019
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27, 2019
DATE:August 7, 2019
TO:Peter Zanoni, City Manager
THRU:Mark Van Vleck, Assistant City Manager
markvv@cctexas.com
(361) 826-3082
FROM:Jeff H. Edmonds, P. E., Director of Engineering Services
jeffreye@cctexas.com
(361) 826-3851
Albert Quintanilla, P.E., Director of Street Operations
albertq@cctexas.com
(361) 826-1957
CAPTION:
Motion awarding a contract to Berry Contracting LP dba Bay, Ltd. for reconstruction of Holly Road
from Rodd Field Road to Ennis Joslin Road using asphalt pavement and providing required utility
improvements in the amount of $8,345,032.20, effective upon issuance of notice to proceed, with
funding approved and available in Type B and Utility Capital Improvement Budgets. (City Council
District 4)
PURPOSE:
This item approves the construction contract to reconstruct and widen Holly Road from Rodd Field
Road to Ennis Joslin Road with sidewalks, underground utility upgrades and new lighting.
BACKGROUND AND FINDINGS:
The Holly Road Improvement Project is one of three street reconstruction projects selected for
funding with Type B sales tax proceeds. Holly Road is the third of those projects to advertise for
bids. The table below provides a summary of the three bid results:
PROJECT APPROVED
BUDGET
ACTUAL
COST DIFFERENCE STATUS
Slough Rd - Rodd Field to Amethyst $2,200,000 $2,520,000 ($320,000)Awarded
5/21/19
Everhart Road - Holly to SPID $5,300,000 $6,190,454 ($890,454)Awarded
7/16/19
Construction Contract Award
Holly Road (Rodd Field Road to Ennis Joslin Road)
Project No.:18021A 2 JS/LH
Legistar No.: 19-1134 Rev. 5– 08/19/2019
Holly Rd - Rodd Field to Ennis Joslin $3,050,000 $2,458,802 591,198
This
Item
The section of Holly Road from Rodd Field to Ennis Joslin is a 2-lane, rural road section with
roadside ditches, no sidewalks, and inadequate illumination. The existing pavement is also in
very poor condition and well beyond its economic life.
PROJECT SCOPE - The Holly Road Improvement Project will construct a new 3-lane roadway
with one travel lane in each direction and a continuous center turn lane. The project will also
install new curb & gutter and 5’ sidewalks on both sides of the roadway. Utility improvements
include the replacement of a 30” water transmission main that has been in service for over 60
years and its location conflicts with the new construction. The project scope also includes new
underground conduit and pull boxes for a future AEP underground lighting circuit.
Competitive Solicitation Process
On July 17, 2019 the City received proposals from four (4) bidders. A summary of the bids is
provided below:
BID SUMMARY
CONTRACTOR BASE BID
Bay, LTD.
Corpus Christi, TX $8,345,032.20
HAAS-Anderson Construction, LTD.
Corpus Christi, TX $9,245,750.00
CPC Interests, LLC DBA Clark Pipeline
Services
Corpus Christi, TX
$9,588,547.82
JE Construction Services, LLC
Corpus Christi, TX $9,793,890.18
Engineer’s Opinion of Probable Cost $10,244,000
BID EVALUATIONS:
The City analyzed the bids in accordance with the contract documents and determined that Berry
Contracting LP dba Bay, Ltd. Is the lowest responsive and responsible bidder. Berry Contracting
LP dba Bay, Ltd. has successfully completed numerous City street projects.
ALTERNATIVES:
The recommended alternative is to award the construction contract to low-bidder, Bay, Ltd.,
particularly, for asphalt since it is well below the engineer’s estimate. This project was not listed
to be bid with asphalt and concrete pavements. Council could direct staff to reject all bids and re-
advertise to bid both ways, or they could cancel the project.
FISCAL IMPACT:
This street project is using Type B street and utility funds in the amount of $8,345,032.20. The
project was originally planned as a Bond 2018 project. The design contract and other
expenditures were started from Bond 2014 and Bond 2018 funds. Council direction was given
after the project was designed to move the construction into Type B funding. Because there are
utility improvements needed, funding has also been budgeted in the Utility Capital program. The
project amount of $8,345,032.20 is budgeted for Type B funds in FY 20 Operational and Capital
Project No.:18021A 3 JS/LH
Legistar No.: 19-1134 Rev. 5– 08/19/2019
budgets. The required utility funds are budgeted in the FY 19 and FY 20 Capital Improvement
Program budgets.
FUND NAME FUND
NUMBER
DOLLAR
AMOUNT
Street B Corporation 3250 $2,049,002.04
Storm Water 2015 CIP 4530 3,072,407.94
Water Capital Reserve 4480 3,030,241.94
Street 2018 CO 2016 3553 99,288.59
Gas 2013 Revenue Bond 4557 80,821.31
Wastewater 2012B Revenue Bond 4249 13,270.38
Funding Detail:
The primary funding details include:
Fund: Street B Corporation (Fund 3250)
Project: 18021A
Activity: 18021-A-3250-EXP
Account: 550910 Construction
Amount: $2,049,002.04
Fund: Storm Water 2015 CIP (Fund 4530)
Project: 18021A
Activity: 18021-A-4530-EXP
Account: 550910 Construction
Amount: $3,072,409.94
Fund: Water Capital Reserve (Fund 4480)
Project: 18021A
Activity: 18021-A-4480-EXP
Account: 550910 Construction
Amount: $3,030,241.94
RECOMMENDATION:
Staff and the design consultant, LNV, Inc., recommend awarding the construction contract for
reconstruction of Holly Road from Rodd Field Road to Ennis Joslin Road to Berry Contracting LP
dba Bay, Ltd. in the amount of $8,345,032.20. The construction duration is 18 months from
issuance of the Notice to Proceed. Work will likely start in September 2019 with contract
completion in February 2021.
LIST OF SUPPORTING DOCUMENTS:
Location Map
Presentation
Bid Tab
37
181 N
CITY COUNCIL EXHIBIT
CITY OF CORPUS CHRISTI, TEXAS
DEPARTMENT OF ENGINEERING SERVICES
Holly Rd - Rodd Field Rd to Ennis Joslin Rd
(TYPE B)
LOCATION MAP
NOT TO SCALE
Project Location
Project Number: 18021A
Council Presentation
August 27, 2019
Holly Road – Rodd Field Road to
Ennis Joslin Road
(Type B)
1
2
Project Location
3
Project Vicinity
4
Project Scope
Full reconstruction and widening of the existing rural, 2-lane asphalt
roadway to a 3-lane asphalt roadway with required utility
improvements as follows:
3-lane asphalt road with 12-foot wide continuous center turn lane
and one 11-foot travel lane in each direction
New 5-foot wide concrete sidewalks with ADA ramps on each side
New underground storm water system
Replacing the existing 30-inch water transmission main that serves
the Flour Bluff community and Padre Island
New water distribution lines and wastewater collection lines
New signage and pavement markings
New underground conduit for future AEP lighting circuits
Traffic signal upgrades for pedestrian accessibility at the Rodd Field
intersection
5
Street Improvements
6
Project Schedule
Projected Schedule reflects City Council award in August 2019 with
anticipated completion in February 2021.
M J J A S O N D J F M A M J J A S O N D J F
Bid/
Award Construction
2019 2020 21
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTA1 Mobilization (5% Max. Part A) 1 LS 25,000.00$ 25,000.00$ 50,000.00$ 50,000.00$ 36,600.00$ 36,600.00$ 10,000.00$ 10,000.00$ A2 Bonds & Insurance 1 LS 52,000.00$ 52,000.00$ 57,000.00$ 57,000.00$ 138,000.00$ 138,000.00$ 117,000.00$ 117,000.00$ A3 Storm Water Pollution Prevention Plan 1 LS 2,000.00$ 2,000.00$ 25,000.00$ 25,000.00$ 18,000.00$ 18,000.00$ 1,800.00$ 1,800.00$ A4 Silt Fence 300 LF 13.75$ 4,125.00$ 5.00$ 1,500.00$ 6.00$ 1,800.00$ 8.50$ 2,550.00$ A5 Inlet Protection 29 EA 310.00$ 8,990.00$ 185.00$ 5,365.00$ 180.00$ 5,220.00$ 400.00$ 11,600.00$ A6 Stabilized Construction Entrance 2 EA 6,100.00$ 12,200.00$ 1,800.00$ 3,600.00$ 2,180.00$ 4,360.00$ 2,800.00$ 5,600.00$ A7 Revegetation (Hydromulch) 23,000 SY 1.15$ 26,450.00$ 1.20$ 27,600.00$ 1.56$ 35,880.00$ 3.00$ 69,000.00$ A8 Tree Protection Fence 1,020 LF 2.90$ 2,958.00$ 6.35$ 6,477.00$ 18.00$ 18,360.00$ 6.50$ 6,630.00$ A9 Traffic Control Plan & Preparation 1 LS 29,800.00$ 29,800.00$ 100,000.00$ 100,000.00$ 27,420.00$ 27,420.00$ 28,000.00$ 28,000.00$ A10 Traffic Control Plan Mobilization/Adjustments 1 LS 15,900.00$ 15,900.00$ 150,000.00$ 150,000.00$ 13,200.00$ 13,200.00$ 40,000.00$ 40,000.00$ A11 Traffic Control Items (Barricades, Signs, & Traffic Handling) 18 MO 3,300.00$ 59,400.00$ 10,000.00$ 180,000.00$ 2,715.60$ 48,880.80$ 1,600.00$ 28,800.00$ A12 Low Profile Concrete Barriers 100 EA 1,100.00$ 110,000.00$ 859.00$ 85,900.00$ 480.00$ 48,000.00$ 1,400.00$ 140,000.00$ A13 Electronic Message Board 4 EA 5,200.00$ 20,800.00$ 11,500.00$ 46,000.00$ 11,880.00$ 47,520.00$ 20,500.00$ 82,000.00$ A14 Temporary Pavement 6,500 SY 37.00$ 240,500.00$ 35.00$ 227,500.00$ 48.00$ 312,000.00$ 38.54$ 250,510.00$ A15 Clear Right-Of-Way 9 AC 970.00$ 8,730.00$ 13,000.00$ 117,000.00$ 2,001.60$ 18,014.40$ 5,400.00$ 48,600.00$ A16 Ozone Action Day 5 DAYS 160.00$ 800.00$ 1,000.00$ 5,000.00$ 180.00$ 900.00$ 3,200.00$ 16,000.00$ $ 858,090.00 TABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ASUBTOTAL PART A - GENERAL (Items A1 thru A16) $ 619,653.00 $ 1,087,942.00 $ 774,155.20 BASE BIDPART A - GENERAL (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT)BAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 1 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409B1 Mobilization (5% Max. Part B) 1 LS 58,000.00$ 58,000.00$ 65,000.00$ 65,000.00$ 83,040.00$ 83,040.00$ 82,000.00$ 82,000.00$ B2 Remove Concrete Driveway 5,656 SF 3.40$ 19,230.40$ 2.50$ 14,140.00$ 3.00$ 16,968.00$ 4.00$ 22,624.00$ B3 Street Excavation (1' B.O.C.) 21,458 SY 9.10$ 195,267.80$ 9.10$ 195,267.80$ 12.71$ 272,731.18$ 14.76$ 316,720.08$ B4 Subgrade Preparation (1' B.O.C.) 21,458 SY 2.75$ 59,009.50$ 2.00$ 42,916.00$ 2.82$ 60,511.56$ 4.50$ 96,561.00$ B5 TX-5 Geogrid (1' B.O.C.) 21,458 SY 2.25$ 48,280.50$ 3.80$ 81,540.40$ 3.50$ 75,103.00$ 4.00$ 85,832.00$ B6 8" Crushed, Limestone Base (Type A, Grade 1-2) (1' B.O.C.) 21,458 SY 18.00$ 386,244.00$ 18.00$ 386,244.00$ 22.32$ 478,942.56$ 20.40$ 437,743.20$ B7 Prime Coat (0.20 Gallons/SY) 3,703 GAL 5.25$ 19,440.75$ 4.60$ 17,033.80$ 7.20$ 26,661.60$ 5.60$ 20,736.80$ B8 2.5" Type 'B' HMAC 18,514 SY 16.25$ 300,852.50$ 16.00$ 296,224.00$ 19.25$ 356,394.50$ 20.00$ 370,280.00$ B9 1.5" Type 'D' HMAC 18,514 SY 10.25$ 189,768.50$ 10.00$ 185,140.00$ 12.65$ 234,202.10$ 13.00$ 240,682.00$ B10 Concrete Driveway 5,465 SF 12.25$ 66,946.25$ 11.00$ 60,115.00$ 10.20$ 55,743.00$ 10.00$ 54,650.00$ B11Reflective Pavement Markings TY.1(W) (24") (SLD) (100 mil) - StopBar 151 LF 19.00$ 2,869.00$ 17.00$ 2,567.00$ 17.40$ 2,627.40$ 17.50$ 2,642.50$ B12Reflective Pavement Markings TY.1(W) (24") (SLD) (100 mil) -Crosswalk 364 LF 19.00$ 6,916.00$ 17.00$ 6,188.00$ 17.40$ 6,333.60$ 17.50$ 6,370.00$ B13Reflective Pavement Markings TY.1 (W) (24") (SLD) (100 mil) - CycleTrack Crosswalk 409 LF 19.00$ 7,771.00$ 17.00$ 6,953.00$ 17.40$ 7,116.60$ 17.50$ 7,157.50$ B14 Reflective Pavement Markings TY.1 (Y) (24") (SLD) (100 mil) - Gore 71 LF 21.00$ 1,491.00$ 18.00$ 1,278.00$ 19.20$ 1,363.20$ 19.30$ 1,370.30$ B15Reflective Pavement Markings TY.1 (W) (12") (SLD) (100 mil) - CycleTrack Crosswalk 398 LF 10.50$ 4,179.00$ 9.25$ 3,681.50$ 9.60$ 3,820.80$ 9.60$ 3,820.80$ B16 Reflective Pavement Markings TY.1 (W) (8") (SLD) (100 mil) 800 LF 1.50$ 1,200.00$ 1.45$ 1,160.00$ 1.50$ 1,200.00$ 1.50$ 1,200.00$ B17 Reflective Pavement Markings TY.1 (Y) (4") (SLD) (100 mil) 7,762 LF 0.50$ 3,881.00$ 0.50$ 3,881.00$ 0.54$ 4,191.48$ 0.50$ 3,881.00$ B18 Reflective Pavement Markings TY.1 (Y) (4") (BKN) (100 mil) 1,458 LF 0.50$ 729.00$ 0.50$ 729.00$ 0.54$ 787.32$ 0.50$ 729.00$ PART B - STREET IMPROVMENTS (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT)** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 2 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409B19 Prefabricated Pavement Markings TY.1 (W) (Word) "Only" (100 mil) 6 EA 360.00$ 2,160.00$ 317.00$ 1,902.00$ 330.00$ 1,980.00$ 332.00$ 1,992.00$ B20Prefabricated Pavement Markings TY.1 (W) (Left Turn Arrow) (100mil) 18 EA 250.00$ 4,500.00$ 225.00$ 4,050.00$ 234.00$ 4,212.00$ 235.00$ 4,230.00$ B21Prefabricated Pavement Markings TY.1 (W) (Straight Arrow) (100mil) 1 EA 230.00$ 230.00$ 202.00$ 202.00$ 210.00$ 210.00$ 210.00$ 210.00$ B22Prefabricated Pavement Markings TY.1 (W) (Right Turn Arrow) (100mil) 1 EA 250.00$ 250.00$ 225.00$ 225.00$ 234.00$ 234.00$ 234.00$ 234.00$ B23 Raised Reflective Pavement Markings (TYII-A-A) Yellow 255 EA 6.50$ 1,657.50$ 5.75$ 1,466.25$ 6.00$ 1,530.00$ 6.00$ 1,530.00$ B24 Raised Reflective Pavement Markings (TYI-C) White 42 EA 10.50$ 441.00$ 9.25$ 388.50$ 9.60$ 403.20$ 9.00$ 378.00$ B25 Raised Reflective Pavement Markings (TYII-B-B) Blue 15 EA 10.50$ 157.50$ 9.25$ 138.75$ 9.60$ 144.00$ 9.00$ 135.00$ B26Combo Stop Sign (R1-1)/Street Name Blades (Incl. Metal Pole, Foundation and Removal of Existing Sign) 9 EA 650.00$ 5,850.00$ 1,100.00$ 9,900.00$ 1,140.00$ 10,260.00$ 1,100.00$ 9,900.00$ B27Speed Limit Sign (R2-1) (Incl. Metal Pole, Foundation, and "BEGIN" Sign) 1 EA 260.00$ 260.00$ 778.00$ 778.00$ 810.00$ 810.00$ 814.00$ 814.00$ B28 Speed Limit Sign (R2-1) (Incl. Metal Pole and Foundation) 2 EA 160.00$ 320.00$ 750.00$ 1,500.00$ 780.00$ 1,560.00$ 800.00$ 1,600.00$ B29 Lane Control Sign (Incl. Metal Pole and Foundation) 4 EA 200.00$ 800.00$ 807.00$ 3,228.00$ 840.00$ 3,360.00$ 850.00$ 3,400.00$ B30 TxDOT Guardrail (Incl. T.A.S. & Impact Head) 160 LF 65.00$ 10,400.00$ 55.00$ 8,800.00$ 46.78$ 7,484.80$ 125.00$ 20,000.00$ B31Allowance For Unanticipated Street Improvements (MANDATORY) 1 LS 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ C1 Mobilization (5% Max. Part C) 1 LS 3,800.00$ 3,800.00$ 4,000.00$ 4,000.00$ 4,740.00$ 4,740.00$ 4,000.00$ 4,000.00$ C2 Condt (PVC) (SCHD 40) (2") 4,592 LF 13.00$ 59,696.00$ 12.00$ 55,104.00$ 14.96$ 68,696.32$ 8.00$ 36,736.00$ C3 Ground Box TY A (122311) W/Apron 29 EA 980.00$ 28,420.00$ 865.00$ 25,085.00$ 900.00$ 26,100.00$ 1,800.00$ 52,200.00$ $ 1,824,423.18 $ 92,936.00 PART C - STREET LIGHT CONDUIT (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT)SUBTOTAL PART C - STREET LIGHT CONDUIT - (Items C1 thru C3) $ 91,916.00 $ 84,189.00 $ 99,536.32 SUBTOTAL PART B - STREET IMPROVEMENTS (Items B1 thru B31) $ 1,424,102.20 $ 1,427,637.00 $ 1,744,925.90 ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 3 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409D1 Mobilization (5% Max. Part D) 1 LS 19,000.00$ 19,000.00$ 17,000.00$ 17,000.00$ 19,200.00$ 19,200.00$ 4,000.00$ 4,000.00$ D2 Demo Concrete Sidewalk 1,322 SF 4.00$ 5,288.00$ 1.70$ 2,247.40$ 2.73$ 3,609.06$ 11.00$ 14,542.00$ D3 5'-Wide Concrete Sidewalk 38,884 SF 10.00$ 388,840.00$ 7.50$ 291,630.00$ 9.60$ 373,286.40$ 7.00$ 272,188.00$ D4 Curb Ramp 1,125 SF 53.00$ 59,625.00$ 43.00$ 48,375.00$ 19.20$ 21,600.00$ 33.00$ 37,125.00$ E1 Mobilization (5% Max. Part E) 1 LS 84,900.00$ 84,900.00$ 135,000.00$ 135,000.00$ 192,000.00$ 192,000.00$ 2,000.00$ 2,000.00$ E2 Remove & Haul Off Existing Culverts & S.E.T.'s 1 LS 28,900.00$ 28,900.00$ 51,300.00$ 51,300.00$ 6,000.00$ 6,000.00$ 43,000.00$ 43,000.00$ E3 Remove Existing Curb and Gutter 277 LF 12.75$ 3,531.75$ 8.50$ 2,354.50$ 28.00$ 7,756.00$ 12.00$ 3,324.00$ E4 Remove Concrete Slope Paving 275 SF 6.25$ 1,718.75$ 2.30$ 632.50$ 6.60$ 1,815.00$ 13.00$ 3,575.00$ E5Full Depth Pavement Repair For New Culverts @ Halcon, Oso Preserve, and N. Oso Pkwy. 150 SY 160.00$ 24,000.00$ 84.00$ 12,600.00$ 180.00$ 27,000.00$ 160.00$ 24,000.00$ E6 Adjust Existing Manhole R&C 1 EA 1,800.00$ 1,800.00$ 1,440.00$ 1,440.00$ 1,800.00$ 1,800.00$ 4,000.00$ 4,000.00$ E7 18" Class IV RCP 473 LF 170.00$ 80,410.00$ 169.00$ 79,937.00$ 116.77$ 55,232.21$ 200.00$ 94,600.00$ E8 24" Class IV RCP 443 LF 140.00$ 62,020.00$ 150.00$ 66,450.00$ 117.41$ 52,012.63$ 140.00$ 62,020.00$ E9 4'x2' RC Box Culvert (HL-93) 1,377 LF 200.00$ 275,400.00$ 269.00$ 370,413.00$ 388.93$ 535,556.61$ 237.00$ 326,349.00$ E10 6'x2' RC Box Culvert (HL-93) 460 LF 310.00$ 142,600.00$ 350.00$ 161,000.00$ 534.60$ 245,916.00$ 367.00$ 168,820.00$ E11 8'x2' RC Box Culvert (HL-93) 3,134 LF 450.00$ 1,410,300.00$ 413.00$ 1,294,342.00$ 651.52$ 2,041,863.68$ 481.00$ 1,507,454.00$ 327,855.00$ PART D - ADA IMPROVEMENTS (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT)PART E - DRAINAGE IMPROVEMENTS (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT) $ 359,252.40 $ 417,695.46 SUBTOTAL PART D - ADA IMPROVEMENTS (Items D1 thru D4) $ 472,753.00 ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 4 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409E12 Pipe Trench Safety 5,887 LF 2.50$ 14,717.50$ 2.05$ 12,068.35$ 4.80$ 28,257.60$ 2.00$ 11,774.00$ E13 Headwall for 1-8'x2' BC 6 EA 8,800.00$ 52,800.00$ 7,500.00$ 45,000.00$ 7,503.60$ 45,021.60$ 16,000.00$ 96,000.00$ E14 Headwall for 2-8'x2' BC 1 EA 21,600.00$ 21,600.00$ 13,200.00$ 13,200.00$ 8,703.60$ 8,703.60$ 18,000.00$ 18,000.00$ E15 Equalizer Openings between 2-8'x2' BC's 6 EA 3,100.00$ 18,600.00$ 1,940.00$ 11,640.00$ 7,488.00$ 44,928.00$ 4,000.00$ 24,000.00$ E16 Standard 4' Diam. Type A Manhole 1 EA 5,000.00$ 5,000.00$ 4,270.00$ 4,270.00$ 5,640.00$ 5,640.00$ 7,000.00$ 7,000.00$ E17 3'x3' Manhole Riser 13 EA 5,000.00$ 65,000.00$ 2,150.00$ 27,950.00$ 7,488.00$ 97,344.00$ 1,450.00$ 18,850.00$ E18 JB-1: 7.5'x5' Curb Inlet/Type 'B' Junction Box (Pre-cast) 1 EA 17,700.00$ 17,700.00$ 16,900.00$ 16,900.00$ 8,819.60$ 8,819.60$ 16,000.00$ 16,000.00$ E19 JB-2: 7.5'x5' Curb Inlet/Type 'B' Junction Box (Pre-cast) 1 EA 17,900.00$ 17,900.00$ 17,100.00$ 17,100.00$ 8,819.60$ 8,819.60$ 16,000.00$ 16,000.00$ E20 JB-3: 10.5'x6.5' Curb Inlet/Type 'B' Junction Box (Pre-cast) 1 EA 21,200.00$ 21,200.00$ 20,300.00$ 20,300.00$ 11,603.60$ 11,603.60$ 21,000.00$ 21,000.00$ E21 JB-4: 6.5'x6.5' Type 'B' Junction Box (Pre-cast) 1 EA 16,500.00$ 16,500.00$ 15,700.00$ 15,700.00$ 11,080.40$ 11,080.40$ 18,000.00$ 18,000.00$ E22 JB-5: 8.5'x4' Type 'B' Precast Junction Box (Pre-cast) 1 EA 15,100.00$ 15,100.00$ 14,200.00$ 14,200.00$ 10,103.00$ 10,103.00$ 18,000.00$ 18,000.00$ E23 JB-6: 20.5'x6.5' Type 'B' Junction Box (Pre-Cast, or Cast-In-Place) 1 EA 39,700.00$ 39,700.00$ 47,100.00$ 47,100.00$ 50,000.00$ 50,000.00$ 47,000.00$ 47,000.00$ E24 5' Curb Inlet 22 EA 4,800.00$ 105,600.00$ 4,200.00$ 92,400.00$ 6,078.00$ 133,716.00$ 5,250.00$ 115,500.00$ E25 10' Curb Inlet 1 EA 8,900.00$ 8,900.00$ 6,050.00$ 6,050.00$ 7,813.20$ 7,813.20$ 9,200.00$ 9,200.00$ E26 Storm Structure Trench Safety 43 EA 91.00$ 3,913.00$ 140.00$ 6,020.00$ 960.00$ 41,280.00$ 280.00$ 12,040.00$ E27 Sidewalk Drain (Includes Associated Grading) 2 EA 3,300.00$ 6,600.00$ 8,820.00$ 17,640.00$ 5,412.00$ 10,824.00$ 1,200.00$ 2,400.00$ E28 Std. 6" Curb and Gutter 8,361 LF 24.00$ 200,664.00$ 22.00$ 183,942.00$ 21.60$ 180,597.60$ 22.00$ 183,942.00$ E29 Concrete Slope Paving 1,650 SF 13.25$ 21,862.50$ 21.00$ 34,650.00$ 13.80$ 22,770.00$ 11.00$ 18,150.00$ E30In Place Lot Fill, (Incl. Stripping & Approx. 175 CY of In Place NativeFill Material) 350 SY 21.00$ 7,350.00$ 4.70$ 1,645.00$ 10.20$ 3,570.00$ 22.00$ 7,700.00$ E31 St. Augustine Sod Over Lot Fill 350 SY 16.00$ 5,600.00$ 5.20$ 1,820.00$ 7.44$ 2,604.00$ 18.00$ 6,300.00$ ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 5 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409E32Re-Grade Southside Ditch (Incl. Removal of Approx. 3,674 CY In-Place Cut) 2,351 LF 6.50$ 15,281.50$ 15.00$ 35,265.00$ 16.80$ 39,496.80$ 23.50$ 55,248.50$ E33 Ditch Fill (Incl. Approx. 2,384 CY of In-Place Select Fill Material) 5,525 LF 4.00$ 22,100.00$ 4.05$ 22,376.25$ 22.80$ 125,970.00$ 19.50$ 107,737.50$ E34Allowance For Unanticipated Drainage Improvements (MANDATORY) 1 LS 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ F1 Mobilization (5% Max. Part F) 1 LS 89,900.00$ 89,900.00$ 165,000.00$ 165,000.00$ 90,000.00$ 90,000.00$ 163,000.00$ 163,000.00$ F2 Remove Existing 2" Waterline 21 LF 15.00$ 315.00$ 35.00$ 735.00$ 33.60$ 705.60$ 200.00$ 4,200.00$ F3 Remove Existing 6" ACP Waterline 26 LF 96.00$ 2,496.00$ 52.00$ 1,352.00$ 46.80$ 1,216.80$ 337.00$ 8,762.00$ F4 Remove Existing 8" ACP Waterline 102 LF 65.00$ 6,630.00$ 58.00$ 5,916.00$ 51.60$ 5,263.20$ 343.00$ 34,986.00$ F5 Remove Existing 8" PVC Waterline 404 LF 28.00$ 11,312.00$ 46.00$ 18,584.00$ 51.60$ 20,846.40$ 102.00$ 41,208.00$ F6 Remove Existing 12" ACP Waterline 44 LF 70.00$ 3,080.00$ 75.00$ 3,300.00$ 62.74$ 2,760.56$ 421.00$ 18,524.00$ F7 Remove Existing 12" PVC Waterline 58 LF 28.00$ 1,624.00$ 67.00$ 3,886.00$ 62.74$ 3,638.92$ 180.00$ 10,440.00$ F8 Remove Existing 30" DI Waterline (Incl. Dewatering Line) 4,358 LF 58.00$ 252,764.00$ 85.00$ 370,430.00$ 79.20$ 345,153.60$ 57.00$ 248,406.00$ F9 Remove and Salvage Existing Fire Hydrant 7 EA 480.00$ 3,360.00$ 1,590.00$ 11,130.00$ 554.68$ 3,882.76$ 2,300.00$ 16,100.00$ F10 30" CL350 D.I. Water Main 96 LF 280.00$ 26,880.00$ 421.00$ 40,416.00$ 244.22$ 23,445.12$ 400.00$ 38,400.00$ F11 30" C905 PVC Water Main 4,263 LF 250.00$ 1,065,750.00$ 227.00$ 967,701.00$ 200.94$ 856,607.22$ 283.00$ 1,206,429.00$ F12 12" CL350 D.I. Waterline 103 LF 200.00$ 20,600.00$ 220.00$ 22,660.00$ 103.93$ 10,704.79$ 159.00$ 16,377.00$ F13 8" C900 PVC Waterline 2,125 LF 73.00$ 155,125.00$ 91.00$ 193,375.00$ 57.56$ 122,315.00$ 91.00$ 193,375.00$ F14 8" CL350 D.I. Waterline 697 LF 110.00$ 76,670.00$ 208.00$ 144,976.00$ 79.37$ 55,320.89$ 127.00$ 88,519.00$ PART F - WATER IMPROVEMENTS (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT3,093,984.00$ SUBTOTAL PART E - DRAINAGE IMPROVEMENTS (Items E1 thru E34) $ 2,844,269.00 $ 2,847,705.60 $ 4,090,914.73 ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 6 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409F15 2" P.E. Waterline 38 LF 150.00$ 5,700.00$ 45.00$ 1,710.00$ 26.62$ 1,011.56$ 73.00$ 2,774.00$ F16 Pipe Trench Safety 7,322 LF 4.00$ 29,288.00$ 1.60$ 11,715.20$ 3.60$ 26,359.20$ 3.00$ 21,966.00$ F17 30" 45 Deg Bend 6 EA 4,000.00$ 24,000.00$ 6,020.00$ 36,120.00$ 4,923.91$ 29,543.46$ 8,700.00$ 52,200.00$ F18 30" Tee 1 EA 6,200.00$ 6,200.00$ 9,290.00$ 9,290.00$ 6,825.85$ 6,825.85$ 14,000.00$ 14,000.00$ F19 30" Gate Valve 3 EA 37,300.00$ 111,900.00$ 41,800.00$ 125,400.00$ 34,260.40$ 102,781.20$ 62,000.00$ 186,000.00$ F20 30" Cut & Cap 3 EA 4,100.00$ 12,300.00$ 12,300.00$ 36,900.00$ 3,939.05$ 11,817.15$ 7,100.00$ 21,300.00$ F21 30"x12" Tee 3 EA 4,100.00$ 12,300.00$ 7,100.00$ 21,300.00$ 4,972.79$ 14,918.37$ 10,000.00$ 30,000.00$ F22 30"x8" Cross 3 EA 5,600.00$ 16,800.00$ 8,740.00$ 26,220.00$ 7,559.51$ 22,678.53$ 12,500.00$ 37,500.00$ F23 12" Gate Valve & Box 3 EA 4,000.00$ 12,000.00$ 3,020.00$ 9,060.00$ 2,510.20$ 7,530.60$ 4,300.00$ 12,900.00$ F24 12" 45 Deg Bend 6 EA 410.00$ 2,460.00$ 899.00$ 5,394.00$ 426.84$ 2,561.04$ 2,000.00$ 12,000.00$ F25 8" 45 Deg Bend 55 EA 200.00$ 11,000.00$ 571.00$ 31,405.00$ 305.55$ 16,805.25$ 1,500.00$ 82,500.00$ F26 8" Gate Valve & Box 11 EA 2,000.00$ 22,000.00$ 1,640.00$ 18,040.00$ 1,329.23$ 14,621.53$ 2,600.00$ 28,600.00$ F27 8" Cross 1 EA 460.00$ 460.00$ 882.00$ 882.00$ 493.07$ 493.07$ 4,300.00$ 4,300.00$ F28 8" Tee 1 EA 720.00$ 720.00$ 762.00$ 762.00$ 782.00$ 782.00$ 2,600.00$ 2,600.00$ F29 8"x6" Reducer 1 EA 200.00$ 200.00$ 782.00$ 782.00$ 552.83$ 552.83$ 2,500.00$ 2,500.00$ F30 8"x2" TS&V 1 EA 4,900.00$ 4,900.00$ 1,890.00$ 1,890.00$ 1,081.49$ 1,081.49$ 2,500.00$ 2,500.00$ F31 8" End Cap 1 EA 1,000.00$ 1,000.00$ 778.00$ 778.00$ 800.99$ 800.99$ 2,500.00$ 2,500.00$ F32 Connect to Exist. 2" Waterline 1 EA 2,600.00$ 2,600.00$ 1,410.00$ 1,410.00$ 869.70$ 869.70$ 5,400.00$ 5,400.00$ F33 Connect to Exist. 6" ACP Waterline 1 EA 2,500.00$ 2,500.00$ 5,510.00$ 5,510.00$ 782.60$ 782.60$ 5,600.00$ 5,600.00$ F34 Connect to Exist. 8" ACP Waterline 1 EA 2,700.00$ 2,700.00$ 5,610.00$ 5,610.00$ 864.46$ 864.46$ 5,600.00$ 5,600.00$ ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 7 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409F35 Connect to Exist. 8" PVC Waterline w/ 8"x8" TS&V 3 EA 4,800.00$ 14,400.00$ 6,850.00$ 20,550.00$ 3,242.40$ 9,727.20$ 14,000.00$ 42,000.00$ F36 Connect to Exist. 8" PVC Waterline 20 EA 2,300.00$ 46,000.00$ 5,650.00$ 113,000.00$ 1,164.06$ 23,281.20$ 4,600.00$ 92,000.00$ F37 Connect to Exist. 12" ACP Waterline (Incl. Single Line Stop) 1 EA 31,900.00$ 31,900.00$ 19,300.00$ 19,300.00$ 10,096.01$ 10,096.01$ 47,000.00$ 47,000.00$ F38 Connect to Exist. 12" PVC Waterline (Incl. Single Line Stop) 1 EA 31,800.00$ 31,800.00$ 19,300.00$ 19,300.00$ 10,081.10$ 10,081.10$ 47,000.00$ 47,000.00$ F39 Connect to Exist. 12" PVC Waterline 1 EA 2,800.00$ 2,800.00$ 5,490.00$ 5,490.00$ 1,215.60$ 1,215.60$ 10,000.00$ 10,000.00$ F40Connect To Exist. 30" Waterline (Incl. Double 30" Line Stop withBypass) 3 EA 182,900.00$ 548,700.00$ 250,000.00$ 750,000.00$ 154,483.93$ 463,451.79$ 178,000.00$ 534,000.00$ F41 Adjust Existing Water Valve Box 10 EA 2,100.00$ 21,000.00$ 1,170.00$ 11,700.00$ 850.20$ 8,502.00$ 1,200.00$ 12,000.00$ F42 New Fire Hydrant Assembly TY.1 3 EA 4,900.00$ 14,700.00$ 6,310.00$ 18,930.00$ 3,495.90$ 10,487.70$ 7,800.00$ 23,400.00$ F43 New Fire Hydrant Assembly TY.1 (Installed with 12"x6" TS&V) 1 EA 9,700.00$ 9,700.00$ 10,800.00$ 10,800.00$ 10,277.47$ 10,277.47$ 11,000.00$ 11,000.00$ F44 New Fire Hydrant Assembly TY.2 7 EA 4,700.00$ 32,900.00$ 6,510.00$ 45,570.00$ 3,514.90$ 24,604.30$ 8,000.00$ 56,000.00$ F45 New Fire Hydrant Assembly TY.2 (Installed with 8"x6" TS&V) 3 EA 9,600.00$ 28,800.00$ 10,700.00$ 32,100.00$ 8,129.86$ 24,389.58$ 11,800.00$ 35,400.00$ F46Allowance For Unanticipated Water Improvements (MANDATORY) 1 LS 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ G1 Mobilization (5% Max. Part G) 1 LS 585.00$ 585.00$ 800.00$ 800.00$ 600.00$ 600.00$ 100.00$ 100.00$ G2 Adjust Existing Manhole Ring and Cover 4 EA 2,300.00$ 9,200.00$ 3,310.00$ 13,240.00$ 2,384.40$ 9,537.60$ 2,800.00$ 11,200.00$ G3Allowance For Unanticipated Wastewater Improvements (MANDATORY) 1 LS 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ 10,000.00$ 10,000.00$ 2,500.00$ 2,500.00$ PART G - WASTEWATER IMPROVEMENTS (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT) $ 3,556,266.00 13,800.00$ $ 20,137.60 SUBTOTAL PART F - WATER IMPROVEMENTS (Items F1 thru F46) $ 2,805,234.00 $ 3,371,379.20 $ 2,426,655.69 SUBTOTAL PART G - WASTEWATER IMPROVEMENTS (Items G1 thru G3) $ 12,285.00 $ 16,540.00 ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 8 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 78409H1 Mobilization (5% Max. Part H) 1 LS 3,200.00$ 3,200.00$ 2,000.00$ 2,000.00$ 810.00$ 810.00$ 100.00$ 100.00$ H2 Exist. Gas Trench Excavation, Bedding & Backfill 308 LF 130.00$ 40,040.00$ 111.00$ 34,188.00$ 11.39$ 3,508.12$ 48.00$ 14,784.00$ H3 Pipe Trench Safety 308 LF 10.00$ 3,080.00$ 4.60$ 1,416.80$ 3.60$ 1,108.80$ 19.00$ 5,852.00$ H4 Adjust Existing Gas Valve Box to Finished Grade 10 EA 2,600.00$ 26,000.00$ 1,100.00$ 11,000.00$ 660.00$ 6,600.00$ 330.00$ 3,300.00$ H5Allowance for Unanticipated Gas Improvements (MANDATORY) 1 LS 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ 2,500.00$ PART H - GAS IMPROVEMENTS (per SECTION 01 29 01 MEASUREMENT AND BASIS FOR PAYMENT) $ 74,820.00 $ 51,104.80 $ 14,526.92 SUBTOTAL PART H - GAS IMPROVEMENTS (Items H1 thru H5)26,536.00$ ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 9 of 10
TABULATED BY: D. Scott Jones, P.E. - LNV, Inc.ENGINEER'S ESTIMATE: $10,244,000 BID DATE: Wednesday, July 17, 2019 TIME OF COMPLETION: 540 Calendar Days ITEM DESCRIPTIONQTY. UNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNTTABULATION OF BIDSDEPARTMENT OF CAPITAL PROGRAMS - CITY OF CORPUS CHRISTI, TEXASHOLLY ROAD - RODD FIELD ROAD TO ENNIS JOSLIN ROAD (TYPE B)CITY PROJECT NO. 18021ABAY, LTD.1414 VALERO WAYCORPUS CHRISTI, TX 78409HAAS-ANDERSON CONSTRUCTION, LTD.P.O. BOX 7692CORPUS CHRISTI, TX 78467CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES6229 LEOPARD STREETCORPUS CHRISTI, TX 78409JE CONSTRUCTION SERVICES, LLC7505 UP RIVER ROADCORPUS CHRISTI, TX 7840984,189.00$ 359,252.40$ BID SUMMARY51,104.80$ 619,653.00$ 1,424,102.20$ 91,916.00$ 472,753.00$ 2,844,269.00$ 14,526.92$ 858,090.00$ 1,824,423.18$ 92,936.00$ 327,855.00$ 3,093,984.00$ 3,556,266.00$ 13,800.00$ 26,536.00$ 774,155.20$ 1,744,925.90$ 99,536.32$ 417,695.46$ PART H - GAS IMPROVEMENTS (Items H1 thru H5)PART A - GENERAL (Items A1 thru A16)PART B - STREET IMPROVEMENTS (Items B1 thru B31)PART C - STREET LIGHT CONDUIT (Items C1 thru C3)PART D - ADA IMPROVEMENTS (Items D1 thru D4)PART E - DRAINAGE IMPROVEMENTS (Items E1 thru E34)2,805,234.00$ 12,285.00$ 74,820.00$ 2,847,705.60$ 3,371,379.20$ 16,540.00$ PART F - WATER IMPROVEMENTS (Items F1 thru F46)PART G - WASTEWATER IMPROVEMENTS (Items G1 thru G3)1,087,942.00$ 4,090,914.73$ 2,426,655.69$ 20,137.60$ 1,427,637.00$ TOAL PROJECT BASE BID (PARTS A thru H)8,345,032.20$ 9,245,750.00$ 9,588,547.82$ 9,793,890.18$ ** The areas with bold borders indicate an error in an extension which did not affect the low bid. The totals reflected here are the Unit Price x Quantity.The unit price shall govern over the amount.Page 10 of 10
Project No: T19068 1 JS/LH
Legistar No.: 19-1052 Rev. 5 – 8/19/2019
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27, 2019
DATE:August 13, 2019
TO:Peter Zanoni, City Manager
THRU:Mark Van Vleck, Assistant City Manager
markvv@cctexas.com
(361) 826-3082
FROM:Jeff H. Edmonds, P. E., Director of Engineering Services
jeffreye@cctexas.com
(361) 826-3851
Albert Quintanilla, P. E., Director of Street Operations
albertq@cctexas.com
(361) 826-1957
CAPTION:
Resolution authorizing the City Manager, or designee, to execute an Advance Funding Agreement
with the Texas Department of Transportation (TXDOT) with the City’s local participation in the
amount of $48,700.80 for water valve adjustments associated with the SH 358 Nueces Ramp
Reversal PH II-A with funds available from the Water Capital Improvement Program. (District 3)
PURPOSE:
This provides approval of an Advance Funding Agreement (AFA) with the Texas Department of
Transportation (TXDOT) for the City to reimburse TxDOT for water valve adjustments required as
part of the SH 358 Nueces Ramp Reversal PH II-A project in compliance with the Municipal
Maintenance Agreement.
BACKGROUND AND FINDINGS:
TXDOT is completing Phase II-A of the South Padre Island Drive (SPID) Ramp Reversal project
for the east bound lanes of the SPID between of Ayers Street and Nile Drive. The previous phase
completed similar improvement for the west bound lanes in the same section. The project
“reverses ramps” by converting existing entrance ramps to exit ramps and vice-versa. A detailed
project description is provided in the attached TxDOT project information sheet.
The ramp reversal project implements significant changes in the roadway profiles and elevations
that require adjustment and/or relocation of the existing water valves. The City completed water,
wastewater and gas adjustments in advance of the TxDOT Ramp Reversal project for
Advance Funding Agreement
SH 358 Nueces Ramp Reversal PH II-A
Advance Funding Agreement
Water Valve Adjustments
Project No: T19068 2 JS/LH
Legistar No.: 19-1052 Rev. 5 – 8/19/2019
adjustments that did not require highway closures and detailed coordination of roadway
construction. There are approximately 80 remaining water valves with require adjustments in
location and/or elevation. The remaining valve adjustments were cost prohibitive until the
roadway construction is underway, and the valve adjustments must occur after the roadway is
complete to match elevations.
All 80 are within the TxDOT work zone and can now be safely implements in a cost-effective
manner under the TxDOT construction project. The City Utilities Department is working directly
with the TxDOT representatives to implement the adjustments with City crews were feasible and
cost effective. The remaining adjustments will be completed by TxDOT’s contractor.
The TxDOT total project cost is $42,716,099. The City’s participation for the utility adjustments
is $43,700 plus $5,000 for TxDOT direct costs for the total cost in the amount of $48,700.
ALTERNATIVES:
The City is required to implement the relocations independently or reimburse TxDOT for such
actions. There was no viable alternative to completing these adjustments independently of
TxDOT due to the timing and coordination during construction.
FISCAL IMPACT:
Utility lines are owned by the City of Corpus Christi. It is the responsibility of the City to pay for
required adjustment of utility lines for all state road projects located within City limits. If this
Advance Funding Agreement in the amount of $48,700.80 is approved by City Council, TxDOT
will incorporate this scope of work within their construction project saving the City time, money
and responsibility for doing the work. Funds are available for this project in Water Capital
Reserves.
Fund(s):Water 2013 RV BD Fund 4093
Account:550910
Project #:T19068
Activity:T19068-A-4093-EXP
RECOMMENDATION:
City staff recommends approval of the Resolution to enter into the Advance Funding Agreement.
The water valve adjustments are anticipated to be complete by December 2019.
LIST OF SUPPORTING DOCUMENTS:
Resolution
Advance Funding Agreement
TxDOT Project Information Sheet
RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO
EXECUTE AN ADVANCE FUNDING AGREEMENT WITH THE TEXAS
DEPARTMENT OF TRANSPORTATION (TXDOT) WITH THE CITY’S LOCAL
PARTICIPATION IN THE AMOUNT OF $48,700.80 FOR WATER VALVE
ADJUSTMENTS ASSOCIATED WITH THESH 358 NUECES RAMP REVERSAL
PH II-A WITH FUNDS AVAILABLE FROM THE WATER CAPITAL
IMPROVEMENT PROGRAM. (DISTRICT 3)
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 an Advance Funding Agreement
(AFA) for water valve adjustments associated with the SH 358 Nueces Ramp Reversal PH II-A with the
Texas Department of Transportation (TXDOT) with the City’s required payment to TXDOT in the amount
of $48,700.80 for reimbursement of direct state costs.
SECTION 2. The City Manager or designee is authorized to execute all related documents necessary to
administer said Advance Funding Agreement, including minor amendments thereto.
PASSED AND APPROVED on the ______ day of _________, 2019:
Joe McComb _______________________
Roland Barrera _______________________
Rudy Garza _______________________
Paulette M. Guajardo _______________________
Gil Hernandez _______________________
Michael Hunter _______________________
Ben Molina _______________________
Everett Roy _______________________
Greg Smith _______________________
ATTEST:CITY OF CORPUS CHRISTI
Rebecca Huerta Joe McComb
City Secretary Mayor
Corpus Christi, Texas
_________ day of ___________________, 2019
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 1 of 10 Revised 02/20/2019
STATE OF TEXAS §
COUNTY OF TRAVIS §
LOCAL TRANSPORTATION PROJECT
ADVANCE FUNDING AGREEMENT
For A
SH 358 Nueces Ramp Reversal PH II-A
Metropolitan and Urban Corridor Program
On System
THIS Local Project Advance Funding Agreement (LPAFA) is made by and between the State of
Texas, acting by and through the Texas Department of Transportation, called the “State”, and the City
of Corpus Christi, acting by and through its duly authorized officials, called the “Local Government.”
WITNESSETH
WHEREAS, a Master Agreement between the Local Government and the State has been adopted
and states the general terms and conditions for transportation projects developed through this
LPAFA; and,
WHEREAS, the Texas Transportation Commission passed Minute Order Number 114670/114264
that provides for the development of, and funding for, the Project described herein; and,
WHEREAS, the Governing Body of the Local Government has approved entering into this LPAFA by
resolution or ordinance dated _______________, 20__, which is attached to and made a part of this
agreement as Attachment A for the development of the Project. A map showing the Project location
appears in Attachment B, which is attached to and made a part of this agreement.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
of the parties, to be by them respectively kept and performed as hereinafter set forth, it is agreed as
follows:
AGREEMENT
1. Period of the Agreement
The period of this LPAFA is as stated in the Master Agreement, without exception.
2. Termination of this LPAFA
Termination of this LPAFA shall be under the conditions as stated in the Master Agreement. This
LPAFA may be terminated by the State if the Project is inactive for thirty-six (36) months or longer
and no expenditures have been charged against federal funds.
3. Amendments
Amendments to this LPAFA shall be made as described in the Master Agreement, without
exception.
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 2 of 10 Revised 02/20/2019
4. The scope of work for this LPAFA includes an adjustment to water valves in pavement and
concrete for new construction on SH 358 Eastbound Frontage Road from Ayers Street to Nile
Drive, hereinafter called the "Project"
5. Right of Way and Real Property
Right of way and real property shall be the responsibility of the Local Government as stated in the
Master Agreement, without exception.
6. Utilities
Adjustment of utilities will be provided by the Local Government as required and as stated in the
Master Agreement, without exception.
7. Environmental Assessment and Mitigation
Environmental assessment and mitigation will be carried out as stated in the Master Agreement.
Additionally, before the advertisement for bids, the Local Government shall provide to the State
written documentation from the appropriate regulatory agency or agencies that all environmental
clearances have been obtained.
8. Compliance with Accessibility Standards
All parties to this Agreement shall ensure that the plans for and the construction of all projects
subject to this Agreement are in compliance with standards issued or approved by the Texas
Department of Licensing and Regulation (TDLR) as meeting or consistent with minimum
accessibility requirements of the Americans with Disabilities Act (P.L. 101-336) (ADA).
9. Architectural and Engineering Services
Architectural and engineering services will be provided by the State as stated in the Master
Agreement. The State is responsible for performance of any required architectural or preliminary
engineering work. For projects on the state highway system, the design shall, at a minimum
conform to applicable State manuals. For projects not on the state highway system, the design
shall, at a minimum, conform to applicable American Association of State Highway and
Transportation Officials design standards. The Local Government may review and comment on
the work as required to accomplish the public purposes of the Local Government. The State will
cooperate fully with the Local Government in accomplishing these local public purposes to the
degree permitted by State and Federal law.
10. Construction Responsibilities
Construction responsibilities will be carried out by the State as stated in the Master Agreement.
11. Project Maintenance
Project maintenance will be undertaken as provided for in the Master Agreement, without
exception.
12. Local Project Sources and Uses of Funds
A. A Project Budget Estimate is provided in Attachment C. The State and the Federal
Government will not reimburse the Local Government for any work performed before the
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 3 of 10 Revised 02/20/2019
federal spending authority is formally obligated to the Project by the Federal Highway
Administration. After federal funds have been obligated, the State will send to the Local
Government a copy of the formal documentation showing the obligation of funds including
federal award information. The Local Government is responsible for one hundred percent
(100%) of the cost of any work performed under its direction or control before the Federal
spending authority is formally obligated.
B. If the Local Government will perform any work under this contract for which reimbursement will
be provided by or through the State, the Local Government must complete training before
federal spending authority is obligated. Training is complete when at least one individual who
is working actively and directly on the Project successfully completes and receives a certificate
for the course entitled Local Government Project Procedures and Qualification for the Texas
Department of Transportation. The Local Government shall provide the certificate of
qualification to the State. The individual who receives the training certificate may be an
employee of the Local Government or an employee of a firm that has been contracted by the
Local Government to perform oversight of the Project. The State in its discretion may deny
reimbursement if the Local Government has not designated a qualified individual to oversee
the Project.
C. A Source of Funds estimate based on the Transportation Improvement Program (TIP) is also
provided in Attachment C. Attachment C shows the percentage and estimated dollar amount
to be contributed to the project by federal, state, and local sources. The parties agree that the
LPAFA may be amended from time to time as required to meet the funding commitments
based on revisions to the TIP, Federal Project Authorization and Agreement (FPAA), or other
federal document.
D. The Local Government is responsible for all non-federal and non-state funding, unless
otherwise provided for in this agreement or through amendment of this agreement. Where
Special Approval has been granted by the State, the Local Government shall only in that
instance be responsible for overruns in excess of the amount to be paid by the Local
Government.
E. Prior to the performance of any engineering review work by the State, the Local Government
will pay to the State the amount specified in Attachment C. At a minimum, this amount shall
equal the Local Government's funding share for the estimated cost of preliminary engineering
for the project. At least sixty (60) days prior to the date set for receipt of the construction bids,
the Local Government shall remit its remaining financial share for the State’s estimated
construction oversight and construction costs.
F. Whenever funds are paid by the Local Government to the State under this Agreement, the
Local Government shall remit a check or warrant made payable to the "Texas Department of
Transportation." The check or warrant shall be deposited by the State and managed by the
State. Funds may only be applied by the State to the Project. If after final Project accounting
any excess funds remain, those funds may be applied by the State to the Local Government's
contractual obligations to the State under another advance funding agreement with approval
by appropriate personnel of the Local Government.
G. If any existing or future local ordinances, commissioners court orders, rules, policies, or other
directives, including but not limited to outdoor advertising billboards and storm water drainage
facility requirements, are more restrictive than State or Federal Regulations, or if any other
locally proposed changes, including but not limited to plats or replats, result in increased costs,
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 4 of 10 Revised 02/20/2019
then any increased costs associated with the ordinances or changes will be paid by the Local
Government. The cost of providing right of way acquired by the State shall mean the total
expenses in acquiring the property interests either through negotiations or eminent domain
proceedings, including but not limited to expenses related to relocation, removal, and
adjustment of eligible utilities.
H. When Special Approval has been granted by the State so that the Local Government bears the
responsibility for paying cost overruns, the Local Government shall make payment to the State
within thirty (30) days from receipt of the State’s written notification of those amounts.
I. The state auditor may conduct an audit or investigation of any entity receiving funds from the
State directly under this contract or indirectly through a subcontract under this contract.
Acceptance of funds directly under this contract or indirectly through a subcontract under this
contract acts as acceptance of the authority of the state auditor, under the direction of the
legislative audit committee, to conduct an audit or investigation in connection with those funds.
Any entity that is the subject of an audit or investigation must provide the state auditor with
access to any information the state auditor considers relevant to the investigation or audit.
J. Payment under this contract beyond the end of the current fiscal biennium is subject to
availability of appropriated funds. If funds are not appropriated, this contract shall be
terminated immediately with no liability to either party.
K. The Local Government is authorized to submit requests for reimbursement by submitting the
original of an itemized invoice in a form and containing all items required by the State no more
frequently than monthly and no later than ninety (90) days after costs are incurred. If the Local
Government submits invoices more than ninety (90) days after the costs are incurred, and if
federal funding is reduced as a result, the State shall have no responsibility to reimburse the
Local Government for those costs.
13. Document and Information Exchange
The Local Government agrees to electronically deliver to the State all general notes,
specifications, contract provision requirements, and related documentation in a Microsoft® Word
or similar document. If requested by the State, the Local Government will use the State's
document template. The Local Government shall also provide a detailed construction time
estimate including types of activities and month in the format required by the State. This
requirement applies whether the Local Government creates the documents with its own forces or
by hiring a consultant or professional provider. At the request of the State, the Local Government
shall submit any information required by the State in the format directed by the State.
14. Incorporation of Master Agreement Provisions
This LPAFA incorporates all of the governing provisions of the Master Agreement in effect on the
date of final execution of this LPAFA, unless an exception has been made in this agreement.
15. Insurance
If this Agreement authorizes the Local Government or its contractor to perform any work on State
right of way, before beginning work the entity performing the work shall provide the State with a
fully executed copy of the State's Form 1560 Certificate of Insurance verifying the existence of
coverage in the amounts and types specified on the Certificate of Insurance for all persons and
entities working on State right of way. This coverage shall be maintained until all work on the
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 5 of 10 Revised 02/20/2019
State right of way is complete. If coverage is not maintained, all work on State right of way shall
cease immediately, and the State may recover damages and all costs of completing the work.
16. Debarment Certification
The parties are prohibited from making any award at any tier to any party that is debarred or
suspended or otherwise excluded from or ineligible for participation in Federal Assistance
Programs under Executive Order 12549, “Debarment and Suspension.” By executing this
Agreement, the Local Government certifies that it and its principals are not currently debarred,
suspended, or otherwise excluded from or ineligible for participation in Federal Assistance
Programs under Executive Order 12549 and further certifies that it will not do business with any
party, to include principals, that is currently debarred, suspended, or otherwise excluded from or
ineligible for participation in Federal Assistance Programs under Executive Order 12549. The
parties to this contract shall require any party to a subcontract or purchase order awarded under
this contract to certify its eligibility to receive federal funds and, when requested by the State, to
furnish a copy of the certification.
17. Cost Principles and Office of Management and Budget (OMB) Audit Requirements
In order to be reimbursed with federal funds, the parties shall comply with the Cost Principles
established in 2 CFR 200 that specify that all reimbursed costs are allowable, reasonable, and
allocable to the Project.
18. Notices
All notices to either party shall be delivered personally or sent by certified or U.S. mail, postage
prepaid, addressed to that party at the following address:
Local Government:
City of Corpus Christi
Attn: Executive Director Public Works
P.O. Box 9277
Corpus Christi, TX 78469-9277
State:
Director of Contract Services
Texas Department of Transportation
125 E. 11th Street
Austin, Texas 78701
All notices shall be deemed given on the date delivered in person or deposited in the mail, unless
otherwise provided by this agreement. Either party may change the above address by sending
written notice of the change to the other party. Either party may request in writing that notices
shall be delivered personally or by certified U.S. mail, and that request shall be carried out by the
other party.
19. Civil Rights Compliance
A. Compliance with Regulations: The Local Government will comply with the Acts and the
Regulations relative to Nondiscrimination in Federally-assisted programs of the U.S.
Department of Transportation (USDOT), the Federal Highway Administration (FHWA), as they
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 6 of 10 Revised 02/20/2019
may be amended from time to time, which are herein incorporated by reference and made part
of this agreement.
B. Nondiscrimination: The Local Government, with regard to the work performed by it during the
contract, will not discriminate on the grounds of race, color, or national origin in the selection
and retention of subcontractors, including procurement of materials and leases of equipment.
The Local Government will not participate directly or indirectly in the discrimination prohibited
by the Acts and the Regulations, including employment practices when the contract covers any
activity, project, or program set forth in Appendix B of 49 CFR Part 21.
C. Solicitations for Subcontracts, Including Procurement of Materials and Equipment: In all
solicitations either by competitive bidding or negotiation made by the Local Government for
work to be performed under a subcontract, including procurement of materials or leases of
equipment, each potential subcontractor or supplier will be notified by the Local Government of
the Local Government’s obligations under this contract and the Acts and Regulations relative
to Nondiscrimination on the grounds of race, color, or national origin.
D. Information and Reports: The Local Government will provide all information and reports
required by the Acts, the Regulations, and directives issued pursuant thereto, and will permit
access to its books, records, accounts, other sources of information, and facilities as may be
determined by the State or the FHWA to be pertinent to ascertain compliance with such Acts,
Regulations or directives. Where any information required of the Local Government is in the
exclusive possession of another who fails or refuses to furnish this information, the Local
Government will so certify to the State or the Federal Highway Administration, as appropriate,
and will set forth what efforts it has made to obtain the information.
E. Sanctions for Noncompliance: In the event of the Local Government's noncompliance with the
Nondiscrimination provisions of this contract, the State will impose such contract sanctions as
it or the FHWA may determine to be appropriate, including, but not limited to:
a. withholding of payments to the Local Government under the contract until the Local
Government complies and/or
b. cancelling, terminating, or suspending of the contract, in whole or in part.
F. Incorporation of Provisions: The Local Government will include the provisions of paragraphs
(A) through (F) in every subcontract, including procurement of materials and leases of
equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto.
The Local Government will take such action with respect to any subcontract or procurement as
the State or the FHWA may direct as a means of enforcing such provisions including sanctions
for noncompliance. Provided, that if the Local Government becomes involved in, or is
threatened with, litigation with a subcontractor or supplier because of such direction, the Local
Government may request the State to enter into such litigation to protect the interests of the
State. In addition, the Local Government may request the United States to enter into such
litigation to protect the interests of the United States.
20. Disadvantaged Business Enterprise (DBE) Program Requirements
A. The parties shall comply with the Disadvantaged Business Enterprise Program requirements
established in 49 CFR Part 26.
B. The Local Government shall adopt, in its totality, the State’s federally approved DBE program.
C. The Local Government shall set an appropriate DBE goal consistent with the State’s DBE
guidelines and in consideration of the local market, project size, and nature of the goods or
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 7 of 10 Revised 02/20/2019
services to be acquired. The Local Government shall have final decision-making authority
regarding the DBE goal and shall be responsible for documenting its actions.
D. The Local Government shall follow all other parts of the State’s DBE program referenced in
TxDOT Form 2395, Memorandum of Understanding Regarding the Adoption of the Texas
Department of Transportation’s Federally-Approved Disadvantaged Business Enterprise by
Entity, and attachments found at web address
http://ftp.dot.state.tx.us/pub/txdot-info/bop/dbe/mou/mou_attachments.pdf.
E. The Local Government shall not discriminate on the basis of race, color, national origin, or sex
in the award and performance of any U.S. Department of Transportation (DOT)-assisted
contract or in the administration of its DBE program or the requirements of 49 CFR Part 26.
The Local Government shall take all necessary and reasonable steps under 49 CFR Part 26 to
ensure non-discrimination in award and administration of DOT-assisted contracts. The State’s
DBE program, as required by 49 CFR Part 26 and as approved by DOT, is incorporated by
reference in this agreement. Implementation of this program is a legal obligation and failure to
carry out its terms shall be treated as a violation of this agreement. Upon notification to the
Local Government of its failure to carry out its approved program, the State may impose
sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the
matter for enforcement under 18 U.S.C. 1001 and the Program Fraud Civil Remedies Act of
1986 (31 U.S.C. 3801 et seq.).
F. Each contract the Local Government signs with a contractor (and each subcontract the prime
contractor signs with a sub-contractor) must include the following assurance: The contractor,
sub-recipient, or sub-contractor shall not discriminate on the basis of race, color, national
origin, or sex in the performance of this contract. The contractor shall carry out applicable
requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts.
Failure by the contractor to carry out these requirements is a material breach of this
agreement, which may result in the termination of this agreement or such other remedy as the
recipient deems appropriate.
21. Federal Funding Accountability and Transparency Act Requirements
A. Any recipient of funds under this Agreement agrees to comply with the Federal Funding
Accountability and Transparency Act (FFATA) and implementing regulations at 2 CFR Part
170, including Appendix A. This agreement is subject to the following award terms:
http://www.gpo.gov/fdsys/pkg/FR-2010-09-14/pdf/2010-22705.pdf and
http://www.gpo.gov/fdsys/pkg/FR-2010-09-14/pdf/2010-22706.pdf
B. The Local Government agrees that it shall:
1. Obtain and provide to the State a System for Award Management (SAM) number (Federal
Acquisition Regulation, Part 4, Sub-part 4.11) if this award provides more than $25,000 in
Federal funding. The SAM number may be obtained by visiting the SAM website whose
address is: https://www.sam.gov/portal/public/SAM/
2. Obtain and provide to the State a Data Universal Numbering System (DUNS) number, a
unique nine-character number that allows the Federal government to track the distribution
of federal money. The DUNS number may be requested free of charge for all businesses
and entities required to do so by visiting the Dun & Bradstreet (D&B) on-line registration
website http://fedgov.dnb.com/webform; and
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 8 of 10 Revised 02/20/2019
3. Report the total compensation and names of its top five (5) executives to the State if:
i. More than 80% of annual gross revenues are from the Federal government, and those
revenues are greater than $25,000,000; and
ii. The compensation information is not already available through reporting to the
U.S. Securities and Exchange Commission.
22. Single Audit Report
A. The parties shall comply with the requirements of the Single Audit Act of 1984, P.L. 98-502,
ensuring that the single audit report includes the coverage stipulated in 2 CFR 200.
B. If threshold expenditures of $750,000 or more are met during the fiscal year, the Local
Government must submit a Single Audit Report and Management Letter (if applicable) to
TxDOT's Compliance Division, 125 East 11th Street, Austin, TX 78701 or contact TxDOT’s
Compliance Division at singleaudits@txdot.gov.
C. If expenditures are less than the threshold during the Local Government's fiscal year, the Local
Government must submit a statement to TxDOT's Compliance Division as follows: "We did not
meet the $______ expenditure threshold and therefore, are not required to have a single audit
performed for FY ______."
D. For each year the project remains open for federal funding expenditures, the Local
Government will be responsible for filing a report or statement as described above. The
required annual filing shall extend throughout the life of the agreement, unless otherwise
amended or the project has been formally closed out and no charges have been incurred
within the current fiscal year.
23. Pertinent Non-Discrimination Authorities
During the performance of this contract, the Local Government, for itself, its assignees, and
successors in interest agree to comply with the following nondiscrimination statutes and authorities;
including but not limited to:
A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits
discrimination on the basis of race, color, national origin); and 49 CFR Part 21.
B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42
U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been
acquired because of Federal or Federal-aid programs and projects).
C. Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), as amended, (prohibits
discrimination on the basis of sex).
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.) as amended, (prohibits
discrimination on the basis of disability); and 49 CFR Part 27.
E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits
discrimination on the basis of age).
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. Chapter 471, Section 47123), as
amended, (prohibits discrimination based on race, creed, color, national origin, or sex).
G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and
applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and
Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms
“programs or activities” to include all of the programs or activities of the Federal-aid recipients,
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 9 of 10 Revised 02/20/2019
subrecipients and contractors, whether such programs or activities are Federally funded or
not).
H. Titles II and III of the Americans with Disabilities Act, which prohibits discrimination on the
basis of disability in the operation of public entities, public and private transportation systems,
places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as
implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38.
I. The Federal Aviation Administration’s Nondiscrimination statute (49 U.S.C. § 47123) (prohibits
discrimination on the basis of race, color, national origin, and sex).
J. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority
Populations and Low-Income Populations, which ensures nondiscrimination against minority
populations by discouraging programs, policies, and activities with disproportionately high and
adverse human health or environmental effects on minority and low-income populations.
K. Executive Order 13166, Improving Access to Services for Persons with Limited English
Proficiency, and resulting agency guidance, national origin discrimination includes
discrimination because of limited English proficiency (LEP). To ensure compliance with Title
VI, the parties must take reasonable steps to ensure that LEP persons have meaningful
access to the programs (70 Fed. Reg. at 74087 to 74100).
L. Title IX of the Education Amendments of 1972, as amended, which prohibits the parties from
discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq.).
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 10 of 10 Revised 02/20/2019
24. Signatory Warranty
Each signatory warrants that the signatory has necessary authority to execute this agreement on
behalf of the entity represented.
Each party is signing this agreement on the date stated under that party’s signature.
THE LOCAL GOVERNMENT
_________________________________
Signature
_________________________________
Typed or Printed Name
_________________________________
Title
_________________________________
Date
THE STATE OF TEXAS
_________________________________
Kenneth Stewart
Director of Contract Services
Texas Department of Transportation
_________________________________
Date
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 1 of 1 Attachment A
ATTACHMENT A
RESOLUTION OR ORDINANCE
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 1 of 1 Attachment B
ATTACHMENT B
PROJECT LOCATION MAP
CSJ # 0617-01-170
District # CRP-16
Code Chart 64 #09800
Project: Water Valve Adjustments
Federal Highway Administration
CFDA Title: Highway Planning and Construction
Federal Highway Administration
CFDA No.: 20.205
Not Research and Development
LPAFA ShortGen Page 1 of 1 Attachment C
ATTACHMENT C
PROJECT BUDGET ESTIMATE AND SOURCE OF FUNDS
Costs will be allocated based on applicable State funding and a fixed amount of Local Government
funding until Local Government funding reaches the maximum obligated amount. The State will then
be responsible for 100% of the costs.
Description Total
Estimated
Cost
Federal
Participation
State
Participation
Local
Participation
Cost Cost Cost
Engineering
(by State)
$12,000.00 $0 $12,000.00 $0
Construction
(by State)
$43,700.80 $0 $0 $43,700.00
Subtotal $55,700.80 $0 $12,000.00 $43,700.00
Environmental
Direct State Costs
$400.00 $0 $400.00 $0
Right of Way
Direct State Costs
$400.00 $0 $400.00 $0
Engineering Direct
State Costs
$700.00 $0 $700.00 $0
Utility Direct State
Costs
$400.00 $0 $400.00 $0
Construction
Direct State Costs
$5,000.00 $0 $0 $5,000.00
Indirect State
Costs
$3,718.44 $0 $3,718.44 $0
TOTAL $66,319.24 $0 $17,618.44 $48,700.80
Initial payment by the Local Government to the State: $48,700.80
Payment by the Local Government to the State before construction: $0
Total payment by the Local Government to the State: $48,700.80
The total amount of Local Government participation shall not exceed the amount appearing above.
125 EAST 11TH STREET, AUSTIN, TEXAS 78701-2483 | 512.463.8588 | WWW.TXDOT.GOV
OUR VALUES: People • Accountability • Trust • Honesty
OUR MISSION: Through collaboration and leadership, we deliver a safe, reliable, and integrated transportation system that enables the movement of people and goods.
An Equal Opportunity Employer
SH 358 Eastbound Ramp Reversal Project
Corpus Christi District
Project Description
This 15-mile project includes the following improvements to address safety and mobility:
Reconstruct several eastbound entrance and exit ramps between Ayers Street and Nile Drive,
including:
- “Reversing ramps” between Weber Road and South Staples Street. This involves
converting existing entrance ramps into exit ramps and vice-versa, similar in design
to the previously “reversed” westbound ramps between Weber Road and Airline
Road.
- Relocating the exit ramps serving Kostoryz Road/Carroll Lane and Weber Road.
These ramp reversals and relocations will increase safety and mobility by providing additional
distance for exiting vehicles and frontage road traffic to merge and queue while approaching
signalized intersections.
Widen and construct new auxiliary, or "merge," lanes on the eastbound mainlanes and
frontage road between Ayers Street and Nile Drive to allow drivers entering and exiting the
highway to safely merge with other traffic.
Improve lighting and reconstruct existing mainlane median barrier between Ayers Street and
Nile Drive to enhance safety.
Construct new sidewalks between Ayers Street and Nile Drive to improve safety and access
for pedestrians and bicyclists.
Improve traffic signal timing and connectivity along the eastbound frontage road to increase
mobility.
Improve Intelligent Transportation Systems (ITS) along the entire corridor to provide drivers
and emergency responders with accurate, up-to-the-minute traffic information.
Project Need
Improvements are necessary to enhance safety and improve mobility along SH 358 to address:
Conflicts between vehicles merging to and from the eastbound mainlanes and frontage
roads, resulting in reduced travel speeds and increased potential for crashes.
Limited space on the eastbound frontage roads to handle vehicles exiting the freeway,
resulting in intersection backups onto the mainlanes.
Out-of-sync traffic signals and deteriorating sidewalks along the eastbound frontage road.
Outdated Intelligent Transportation System (ITS) technology and lighting.
Contract amount awarded to the contractor, Bay Ltd.
Ramp reversal project: $42,716,098.67
Signal, lighting, median barrier & ITS upgrades: $7,244,052.80
Source: Monthly State Let Construction Report for the Corpus Christi District,
http://www.dot.state.tx.us/insdtdot/geodist/crp/cserve/constrpt/ccnst_1.htm
Anticipated project completion date
February 2022
Project No: 18163A 1 SW/CJ
Legistar No.: 19-1053 Rev. 5– 8/19/2019
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27, 2019
DATE:August 13, 2019
TO:Peter Zanoni, City Manager
THRU:Mark Van Vleck, Assistant City Manager
markvv@cctexas.com
(361) 826-3082
FROM:Jeff H. Edmonds, P. E., Director of Engineering Services
jeffreye@cctexas.com
(361) 826-3851
CAPTION:
Motion awarding Amendment1 to a contract with Mott MacDonald, LLC in the amount of $224,862
for a total restated fee of $247,362 to provide engineering and design services for assistance with
the North Beach Coastal Protection project, effective upon issuance of notice to proceed, with
funding available in Bond 2018, Proposition A. City Council District 1
SUMMARY:
To approve an amendment to the professional services contract with Mott MacDonald, LLC., to
develop the concepts and permitting requirements for a new breakwater structure to protect the
North Beach shoreline.
BACKGROUND AND FINDINGS:
Beginning in late 2016 through early 2018, the Planning & ESI Department led an initiative to
reevaluate the development plan for North Beach in light of the realignment of the Harbor Bridge
and associated freeway system. On March 27, 2018 City Council adopted an ordinance
incorporating the North Beach Redevelopment Initiative into the Comprehensive Plan. The North
Beach Redevelopment Initiative included two redevelopment alternative concepts. Alternative 2
included breakwater islands east of the existing beach.
On April 24, 2018, City Council established a North Beach Infrastructure Task Force to assist the
City with implementation of redevelopment plans for the North Beach area. The Redevelopment
Plan for North Beach included a list of thirty-three (33) potential Capital Improvement Projects.
Four of the projects were prioritized for inclusion on Bond 2018. The four projects included on
Professional Services Contract Amendment
North Beach Costal Protection
(Bond 2018, Proposition A)
Project No: 18163A 2 SW/CJ
Legistar No.: 19-1053 Rev. 5– 8/19/2019
Bond 2018 Proposition A are as follows:
Beach Avenue (E. Causeway Blvd to Gulfbreeze Blvd)
N. Beach Area Primary Access (Beach to Timon)
N. Beach Gulfspray Avenue Pedestrian/Bike Access
N. Beach Coastal Protection
The North Beach Coastal Protection project proposes new breakwater structures to provide wave
attenuation and erosion protection for the North Beach coastline. The breakwater structure
concept is to construct island features that will create new natural habitats as well as provide
wave sheltering.
This coastal protection project will require extensive stakeholder coordination and permitting
through the United States Army Corps of Engineers (USACE). The initial engineering contract
was a small agreement to complete a feasibility study to better define the scope of the proposed
breakwater structure, identify permitting requirements and develop cost estimates.
This amendment provides the preliminary engineering that is required for project permitting. The
following is a summary of the proposed tasks:
1. Project review and data collection to verify project scope and objectives
2. Coastal engineering, modeling and alternative analysis that reflect current conditions of
the project site including:
a. Analysis of water elevations
b. Wind generated waves
c. Passing vessel pressure effects
d. Tidal flows and circulation
e. Resulting tide, wind and storm impacts on project area
3. Preliminary design including:
a. Basis of Design technical memorandum
b. Preliminary design level drawings compliant with design criteria
4. Regulatory coordination including:
a. Coordination with the USACE
b. Any supporting documentation developed for USACE coordination
5. Design coordination with Lloyd Engineering, a firm that the Rachel Foundation hired to
complete the geotechnical investigations for the proposed breakwater structure.
Competitive Solicitation Process
Mott McDonald was selected for this project in May 2019 under RFQ 2019-01. The selection
committee with representatives from Planning and Engineering Services, recommend Mott
McDonald as most qualified based five factors: 1) experience of the firm, 2) experience of the key
personnel with specific experience with Port of Corpus Christi Ship Channel projects and
numerous other coastal structures, 3) project approach and management plan, 4) capacity to
meet the project requirements and timelines, and 5) past performance.
ALTERNATIVES:
Exercising this amendment is the logical next step moving towards implementation of the North
Beach Breakwater concept. The alternative would be to cancel the project.
Project No: 18163A 3 SW/CJ
Legistar No.: 19-1053 Rev. 5– 8/19/2019
FISCAL IMPACT:
This project was approved and budgeted as part of Street Bond 2018 Part 1 and is part of the
Comprehensive Plan and Redevelopment Plan for the North Beach Area. The Amendment 1, in
the amount of $224,862, with a restated fee of $247,362, is budgeted in the FY 19 and FY 20
Capital Improvement Program budgets.
Funding Detail:
Fund:Street 2019 Bond 2018 Part 1 (Fund 3556)
Project No.:18163A
Account:Outside Consultants 550950
Activity:18163-A-3556-EXP
RECOMMENDATION:
City staff recommends approval of the Professional Services Contract Amendment 1 to Mott
McDonald, LLC. for the North Beach Coastal Protection project in the amount of $224,862 for a
total restated fee of $247,362 to provide the engineering services to develop the preliminary
design and permitting requirements for a new breakwater structure.
LIST OF SUPPORTING DOCUMENTS:
Location Map
Presentation
Amendment No. 1
37
181 N
CITY COUNCIL EXHIBIT
CITY OF CORPUS CHRISTI, TEXAS
DEPARTMENT OF ENGINEERING SERVICES
North Beach Coastal Protection
(Bond 2018, Proposition A)
LOCATION MAP
NOT TO SCALE
Project Location
Project Number: 18163A
1
North Beach Coastal Protection
(Bond 2018, Proposition A)
Council Presentation
August 27, 2019
2
Project Location
3
Project Location
4
Project Scope
•Coastal engineering, modeling and alternative analysis that reflect current
conditions of the project site including:
Analysis of water elevations
Wind generated waves
Passing vessel pressure effects
Tidal flows and circulation
Resulting tide, wind and storm impacts on project area
•Preliminary design including:
Basis of Design technical memorandum
Preliminary design level drawings compliant with design criteria
•Regulatory coordination including:
Coordination with the USACE
All supporting documentation for USACE coordination
•Design coordination with Lloyd Engineering, a firm that the Rachel Foundation
hired to complete the geotechnical investigations for the proposed breakwater
structure
5
Project Schedule
A S O N D J F M A M J
2019 2020
Design
Projected Schedule reflects City Council Award inAugust 2019 with anticipated preliminary designand permitting phase completion in June of 2020
6
Questions?
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM:David Lehfeldt, Interim Director of Solid Waste Operations
David3@cctexas.com
(361)-826-1972
Kim Baker, Director of Contracts and Procurement
Kimb2@cctexas.com
(361)-826-3169
CAPTION:
Motion authorizing a three-year service agreement with Texas Land Reclamation LLC,
dba UTW Tire Collection Services, for tire collection and recycling/disposal services for a
total amount not to exceed $356,400.00, effective upon issuance of a notice to proceed,
with the first-year funding in the amount of $118,800.00 through the General Fund and
Fleet Maintenance Services Fund.
SUMMARY:
The motion authorizes a three-year service agreement with Texas Land Reclamation
LLC, dba UTW Tire Collection for an amount not to exceed $356,400.00. This cost will be
shared by three funds: $85,300.00 in General Fund for the J C Elliott Transfer Station;
$22,100.00 in the General Fund for the Cefe Valenzuela Landfill Operations; and,
$11,400.00 in the Fleet Maintenance Service Fund for the Fleet Service Station. Solid
Waste and the Fleet Division have operational needs to contract these services for the
disposal and recycling of used and/or scrap tires for these City facilities. Texas Land
Reclamation LLC, dba UTW Tire Collection is currently the provider of these services
through a service agreement that will soon expire.
BACKGROUND AND FINDINGS:
The City of Corpus Christi collects approximately 450 tons of used and/or scrap tires on
an annual basis, this waste is generated by residential and commercial customers and
Tire Collection and Recycling/Disposal Services for Solid Waste and Asset
Management Departments
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27, 2019
disposed at the J.C. Elliott and Cefe Valenzuela Landfills. The Maintenance Services
Division of Asset Management Department generates an additional 140 tons of used
and/or scrap tires from City’s fleet vehicles and equipment. The Contractor will collect the
tires from the site and will dispose of and/or recycle the tires as per Texas Commission
on Environmental Quality (TCEQ) guidelines.
The Contracts and Procurement Department conducted a competitive Request for Bid
process to obtain bids for a new contract. The City received one qualified bid and one
non-responsive bid for these services. The non-responsive bidder failed to submit the
TCEQ registration number, which was one of the requirements of the bid solicitation. Staff
recommends award to the lowest responsive, responsible bidder, Texas Land
Reclamation LLC dba UTW Tire Collection Services.
ALTERNATIVES:
An alternative to accepting the one qualified bid would be to reject the bid and request
the services be competitively bid again. However, the bid from Texas Land Reclamation
LLC, dba UTW Tire Collection Services is fair and reasonable and within budget. In
addition, further delay in securing a long-term service agreement may cause the City not
to follow TECQ regulations.
FISCAL IMPACT:
The fiscal impact is $9,900.00 for the remainder of this fiscal year, with the remaining
cost of $346,500.00 budgeted in future years through the annual budget process.
Funding Detail:
Fund:1020 General Fund
Organization/Activity:12504 JC Elliott Transfer Station
Mission Element:033 Landfills
Project # (CIP Only): N/A
Account:530000 Professional Services
Fund:1020 General Fund
Organization/Activity:12506 Cefe Valenzuela Landfill Oper
Mission Element:033 Landfills
Project # (CIP Only): N/A
Account:530000 Professional Services
Fund:5110 Fleet Maint Svc
Organization/Activity:40140 Service Station
Mission Element:202 Service Station
Project # (CIP Only): N/A
Account:520090 Minor Tools and equip
RECOMMENDATION:
Staff recommends approval of this motion authorizing a three-year service agreement
with Texas Land Reclamation LLC, dba UTW Tire Collection Services the disposal and
recycling services of used and/or scrap tires as presented.
LIST OF SUPPORTING DOCUMENTS:
Service Agreement
Bid Tabulation
Service Agreement Standard Form Page 1 of 7
Approved as to Legal Form June 24, 2019
SERVICE AGREEMENT NO. 2244
Tire Collection and Recycling/Disposal Services
THIS Tire Collection and Recycling/Disposal Services Agreement ("Agreement") is
entered into by and between the City of Corpus Christi, a Texas home-rule municipal
corporation (“City”) and Texas Land Reclamation, LLC dba UTW Tire Collection
Services (“Contractor"), effective upon execution by the City Manager or the City
Manager’s designee (“City Manager”).
WHEREAS, Contractor has bid to provide Tire Collection and Recycling/Disposal
Services in response to Request for Bid/Proposal No. 2244 (“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 Tire Collection and Recycling/Disposal Services
(“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 three years, with performance commencing upon the
date of issuance of a notice to proceed from the Contract Administrator or
Purchasing Division. The parties may mutually extend the term of this Agreement
for up to zero additional zero-year periods (“Option Period(s)”), provided, the
parties do so in writing and prior to the expiration of the original term or the then-
current Option Period. The City’s extension authorization must be executed by
the City Manager or designee.
3. Compensation and Payment. This Agreement is for an amount not to exceed
$356,400.00, 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. Contractor shall invoice no more
frequently than once per month. 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. Any amount not expended during the initial term or any option period
may, at the City’s discretion, be allocated for use in the next option period.
Service Agreement Standard Form Page 2 of 7
Approved as to Legal Form June 24, 2019
Invoices will be mailed to the following address with a copy provided to the
Contract Administrator:
City of Corpus Christi
Attn: Accounts Payable
P.O. Box 9277
Corpus Christi, Texas 78469-9277
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: Gabriel Maldonado
Department: Solid Waste
Phone: 361-826-1986
Email:GabrielM3@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 that 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 Services will not be
rendered until the Contractor receives the signed purchase release order.
Service Agreement Standard Form Page 3 of 7
Approved as to Legal Form June 24, 2019
7. Inspection and Acceptance. City may inspect all Services and products supplied
before acceptance. Any Services or products 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.
(A) 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.
(B) 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.
(C) Contractor warrants that all Services will be performed in accordance
with the standard of care used by similarly situated contractors performing similar
services.
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
Service Agreement Standard Form Page 4 of 7
Approved as to Legal Form June 24, 2019
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.
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
unless the subcontractors were named in the bid or proposal or in an Attachment
to this Agreement, 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. The City may, at the City’s sole discretion, choose not to
accept Services performed by a subcontractor that was not approved in
accordance with this paragraph.
13. Amendments. This Agreement may be amended or modified only in writing
executed by authorized representatives of both parties.
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 applicable 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: Gabriel Maldonado
Title: Contracts/Funds Administrator
Address: 2525 Hygeia St, Corpus Chirsti, TX 78415
Phone: 361-826-1986
Fax: 361-826-1971
Service Agreement Standard Form Page 5 of 7
Approved as to Legal Form June 24, 2019
IF TO CONTRACTOR:
Texas Land Reclamation, LLC dba UTW Tire Collection Services
Attn: Penelope De La Garza
Title: Vice President
Address: P.O Box 1236, Donna, TX 78537
Phone: 956-285-9608
Fax: N/A
17. CONTRACTOR SHALL FULLY 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
WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF
PERSONAL INJURIES, 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 A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS
AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT
ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS
EMPLOYEES OR AGENTS. 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 OR RESULTING 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
comply with any of the terms 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 City
Manager may also terminate this Agreement upon 24 hours written notice to the
Service Agreement Standard Form Page 6 of 7
Approved as to Legal Form June 24, 2019
Contractor for failure to pay or provide proof of payment of taxes as set out in this
Agreement.
19. Owner’s Manual and Preventative Maintenance. Contractor agrees to provide a
copy of the owner’s manual and/or preventative maintenance guidelines or
instructions if available for any equipment purchased by the City pursuant to this
Agreement. Contractor must provide such documentation upon delivery of such
equipment and prior to receipt of the final payment by the City.
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 (excluding attachments and exhibits);
B. its attachments;
C. the bid solicitation document including any addenda (Exhibit 1); then,
D. 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 if required
by said statute.
24. Governing Law. Contractor agrees to comply with all federal, Texas, and City laws
in the performance of this Agreement. 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
Page 1 of 3
ATTACHMENT A: SCOPE OF WORK
1.1 Background Information
A. The J.C. Elliott Landfill and Cefe Valenzuela Landfill collects used and/or scrap tires
from residential and commercial customers for disposal or recycling.
B. The Fleet Department - Maintenance services division is responsible for maintaining
all the City owned vehicles and equipment. Maintenance services removes the tire
from the vehicles and equipment if the tire is at the end of its useful life.
C. In 2018, the J.C. Elliott and Cefe Valenzuela landfills collected 256.15 tons and 72.15
tons of used and/or scrap tires respectively. Maintenance services removed 140 tons
of used and/or scrap tires from the vehicles and equipment.
1.2 Tire Collection and Recycling/Disposal
A. The Contractor shall provide tire collection and recycling/disposal services at J.C.
Elliott landfill, Cefe landfill, and Maintenance Services. The J.C. Elliott landfill is
located at 7001 Ayers St, Corpus Christi, TX 78415. The Cefe Valenzuela landfill is
located at the intersection of Farm to Market 2444 and County Road 20, and the
Maintenance services is located at 5352 Ayers St, Corpus Christi, TX 78415. and.
B. The Contractor is responsible for labor, equipment, and transportation necessary for
collecting and recycling/disposing of tires from the location.
C. The Contractor is required to station a minimum of one 40’ or greater trailer at each
location for tire collection.
D. The Contractor will collect approximately 300 tons from J.C. Elliott landfill,
approximately 150 tons from Cefe Valenzuela Landfill and approximately 140 tons
from Maintenance services. This is an annual estimate. The City does not guarantee
any minimum tonnages under this contract.
E. The frequency of trailer collection will depend on trailer size. Generally, in a 40’ trailer,
the frequency of trailer collection will be approximately 10 days at J.C Elliott landfill,
approximately 6 weeks at Cefe Valenzuela landfill, and approximately 4 weeks at
Maintenance Services.
F. The City’s employee will oversee loading of tires. Every effort will be made to ensure
maximum airspace is utilized to load trailers.
G. The City will notify the Contractor once the trailer is filled. The Contractor shall
remove the trailer within 48 hours of the notification. The Contractor shall bring an
empty trailer to the requested location to replace the filled trailer.
H. The Contractor must be weighted at State certified weigh stations to determine
tonnage.
I. The Contractor shall be responsible for maintenance of trailers located at all sites.
J. The Contractor shall dispose, recycled or processed tires in accordance with all
Federal, State and local rules and regulations.
Page 2 of 3
K. The Contractor shall be responsible for ensuring that used and/or scrap tires are
transported to an authorized facility for recycling and/or disposal.
L. The City of Corpus Christi will not be responsible for the Contractor’s illegal action in
handling the tires.
M. The Contractor shall maintain all permits and licenses necessary to perform the
work, shall present proof of its permits and licenses to City representative when
requested.
N. All vehicles used by the Contractor to transport used tires shall display the Company
name and the required tire hauling permits.
O. The removal of trailer from the location shall be limited to 8:00 AM to 4:00 PM,
Monday to Friday excluding City holidays. A list of City holidays will be given upon
award.
P. Tire Collection may include rims and contain dirt and debris. The Contractor must
accept tires in as is condition with no additional charges. Tire loads will not be
segregated by the City in any manner.
1.3 Recordkeeping
A. Transportation of tires must be properly documented via Texas Commission on
Environmental Quality (TCEQ) Whole Used or Scrap Tire manifest form or similar form
approved by State law. The form must be signed by a City employee at the
collection site before they are removed from the collection site.
B. The Contractor must provide copy of completed form within 60 days after the used
and/or scrap tires were transported.
C. The Contractor shall notify the City of any changes to the form.
D. The City reserves the right to act as per local and state law for not providing the form
as per timeline defined by the state law.
E. The Contractor shall maintain records as required per federal, state, and local laws
and regulations.
F. The Contractor shall maintain records in a manner acceptable to the City,
pertaining to tonnage received and disposed/recycled during the contract period.
Each vehicle and container used in the transportation of the used and/or scrap tires
shall be weighed on a certified scale at, or prior to arrival at the Contractor facility,
and again after unloading to determine the net weight of the tires to be processed.
The weight subject to invoicing shall be the net weight of the tires only. There shall
be no additional charges for the use of Contractor’s scale.
1.4 Invoicing
The Contractor shall invoice after each collection in accordance with the contract
pricing. The Contractor shall invoice the cost for each location. Along with monthly
invoices, the Contractor must provide support documentation to include a listing of
receipt to include ticket number, tonnage, date, quantity disposed, gross weight, tare
weight, net weight. The City will match receipts with records from the facility collected.
Page 3 of 3
1.5 Contract Cancellation
The City reserves the right to cancel the contract after three incidents have been
documented to the Contractor of inadequate trailer inventory and/or delays in trailer
removal.
1.6 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
Page 1 of 3
ATTACHMENT C: INSURANCE REQUIREMENTS
I. CONTRACTOR’S LIABILITY INSURANCE
A. Contractor must not commence work under this agreement until all insurance
required has been obtained and such insurance has been approved by the City.
Contractor must not allow any subcontractor Agency to commence work until all
similar insurance required of any subcontractor Agency has been obtained.
B. Contractor must furnish to the City’s Risk Manager and Contract Administer one (1)
copy of Certificates of Insurance (COI) 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 is
required on all applicable policies. Endorsements must be provided with COI. Project
name and or number must be listed in Description Box of COI.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-written day notice of cancellation,
required on all certificates or by applicable
policy endorsements
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
AUTO LIABILITY (including)
1. Owned
2. Hired and Non-Owned
3. Rented/Leased
$1,000,000 Combined Single Limit
WORKERS’ COMPENSATION
EMPLOYER’S LIABILITY
Statutory
$500,000 /$500,000 /$500,000
C. In the event of accidents of any kind related to this agreement, Contractor must
furnish the Risk Manager with copies of all reports of any accidents within 10 days of
the accident.
Page 2 of 3
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 an amount sufficient to assure
that all workers’ compensation obligations incurred by the Contractor will be
promptly met.
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 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 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, volunteers, and elected representatives
as additional insured by endorsement, as respects operations, completed operation 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 suspension,
cancellation, non-renewal or material change 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 suspension, cancellation, or non-renewal 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 remove
the exhibit hereunder, and/or withhold any payment(s) if any, which become due to
Page 3 of 3
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 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 agreement.
I. It is understood and agreed that the insurance required is in addition to and separate
from any other obligation contained in this agreement.
2019 Insurance Requirements
Ins. Req. Exhibit 4-B
Contracts for General Services – Services Performed Onsite
04/26/2019 Risk Management – Legal Dept.
BONDS
No bonds are required, therefore Section 5(B) is null to this Service Agreement
Page 1 of 1
ATTACHMENT D: WARRANTY REQUIREMENTS
No product warranty applies to this Service Agreement therefore, Section 8
Warranty Subsections 8(A) and 8(B) are void.
Item Description Unit Qty Unit Rate Total Price Unit Price Total Price
1
Fee to stage trailers and collect,
transport, process and properly recycle
and/or dispose used tires from the
landfills and Maintenance services
Tons 1800 198.00$ 356,400.00$
356,400.00$
* Vendor is non responsive because the vendor did not submit the TCEQ registeration number that
was required in the solicitation as one of the bid requirements.
Texas Land Reclamation LLC DBA
UTW Tire Collection Services,
Donna TX
City of Corpus Christi
Contracts and Procurement
BUYER : JAPAN SHAH
T7 Enterprise LLC dba Reliable
Tire Disposal
Burnet, TX*
Bid Tabulation
RFB 2244 - Tire Collection and Recycling/Disposal Services
Solid Waste and Asset Management Departments
Project No: 19060A 1 LF/VP
Legistar No.: 19-1145 Rev. 3 – 08/19/19
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27, 2019
DATE:August 19, 2019
TO:Peter Zanoni, City Manager
THRU:Mark Van Vleck, Assistant City Manager
markvv@cctexas.com
(361) 826-3082
FROM:Jeff H. Edmonds, P. E., Director of Engineering Services
jeffreye@cctexas.com
(361) 826-3851
David Lehfeldt, Deputy Director of Solid Waste
davidl3@cctexas.com
(361) 826-1953
CAPTION:
Motion awarding a contract to Burns & McDonnell for services associated with Solid Waste
Operational Assessment including engineering analysis and business operations assessment in
the amount of $144,800,effective upon issuance of notice to proceed, with funding available from
Solid Waste 2019 Operations Fund.
SUMMARY:
This project provides a comprehensive evaluation of Solid Waste Operations and the landfill
operations contract to identify potential improvements and cost savings with advancements in
industry practices.
BACKGROUND AND FINDINGS:
This project will update the 2013 Solid Waste Competitive Assessment and Cost of Service Study
(2013 Study), as well as evaluate additional key issues identified by the City. The consultant will
analyze and provide recommendations for Solid Waste services including brush collection, refuse
collection, recycling collection/processing, and operations at the JC Elliott Transfer Station and
Cefé Valenzuela Landfill. Analysis includes user rate design and detailed recommendations to
correct potential operational deficiencies. Benchmarking is also required and will include, but is
not limited to, rate comparison, service levels and operational efficiencies of other similar-sized
Texas Cities. The consultant will also assist the City in developing a new Request for Proposals
for the landfill operations to begin re-competing the existing contract.
Professional Services Contract
Solid Waste Operational Assessment
Project No: 19060A 2 LF/VP
Legistar No.: 19-1145 Rev. 3 – 08/19/19
The following Phases outline primary tasks for this contract:
Phase 1: Project Initiation and Management
Phase 2: Cost of Service and Rate Design
Phase 3: Review Alternative Operational Options
Phase 4: Report
Phase 5: Procurement Assistance for Landfill Operations, Recycling Processing and
Composting Processing Services
Burns & McDonnel was selected for this project in May 2019 under RFQ 2019-01. The selection
committee with representatives from Solid Waste and Engineering Services recommended Burns
& McDonnel as most qualified based on five factors: 1) experience of the firm, 2) experience of
key personnel with specific experience with Landfill Operations, legal and regulatory related
matters, governmental agencies, rate structures, etc., 3) project approach and management plan,
4) capacity to meet the project requirements and timelines, and 5) past performance.
ALTERNATIVES:
Continue current practices and the existing landfill contract without the assistance of industry
professionals. This eliminates the opportunity to recognize existing inefficiencies relative to recent
industry advances in processes and technologies.
FISCAL IMPACT:
The purpose of this contract with Burns & McDonnell in the amount of $144,800 is to provide the
City with cost-savings measures and best practices to run the City landfills in a more effective and
economical manner. This project is budgeted in the Solid Waste Operational Budget for FY 2019.
Funding Detail:
Fund: 1020 - General Fund
Organization/Activity: 12500 - Solid Waste Administration
Mission Element:031 - Collect Brush and Bulk Waste
Project #: 19060A - Solid Waste Operational Assessment
Account: 530000 – Professional Services
RECOMMENDATION:
Staff recommends approval of the professional services contract amendment with Burns &
McDonnell in the amount of $144,800, effective upon issuance of a notice to proceed for services
associated with Solid Waste Operational Assessment including engineering analysis and
business operations assessment with funding available from the 2019 Solid Waste Operational
fund. The assessment is planned to start in October 2019 with completion April 2020.
LIST OF SUPPORTING DOCUMENTS:
Location Map
Presentation
Contract
Page 1 Rev. 19-5
CITY OF CORPUS CHRISTI
CONTRACT FOR PROFESSIONAL SERVICES
19060A Solid Waste Operational Assessment
The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi,
Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee
(Director) and Burns & McDonnell Engineering Company, Inc., a Missouri corporation, 8911 Capital of
Texas Highway, Building 3, Suite 3100, Austin, Travis County, Texas 78759, (Consultant), hereby agree
as follows:
TABLE OF CONTENTS
ARTICLE NO. TITLE PAGE
ARTICLE I SCOPE OF SERVICES ...................................................................2
ARTICLE II QUALITY CONTROL .......................................................................3
ARTICLE III COMPENSATION ............................................................................3
ARTICLE IV TIME AND PERIOD OF SERVICE ..................................................4
ARTICLE V OPINIONS OF COST ......................................................................5
ARTICLE VI INSURANCE REQUIREMENTS ......................................................5
ARTICLE VII INDEMNIFICATION .........................................................................5
ARTICLE VIII TERMINATION OF AGREEMENT ..................................................6
ARTICLE IX RIGHT OF REVIEW AND AUDIT ....................................................7
ARTICLE X OWNER REMEDIES .......................................................................7
ARTICLE XI CONSULTANT REMEDIES .............................................................8
ARTICLE XII CLAIMS AND DISPUTE RESOLUTION ..........................................8
ARTICLE XIII MISCELLANEOUS PROVISIONS .................................................10
EXHIBITS
Page 2 Rev. 19-5
ARTICLE I – SCOPE OF SERVICES
1.1 The Consultant shall provide to Engineering Services its Scope of Services, to be incorporated herein and
attached to this Agreement as Exhibit A. The Scope of Services shall include all associated services required for
Consultant to provide such Services, pursuant to this Agreement, and any and all Services that would normally be
required by law or common due diligence in accordance with the standard of care defined in Article XIII o f this
Agreement. The approved Scope of Services defines the services to be performed by Consultant under this
Agreement.
1.2 Consultant shall follow City Codes and Standards effective at the time of the execution of the contract. At
review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and
Standards are followed unless specifically and explicitly excluded from doing so in the approved Scope of Services
attached as Exhibit A. A request made by either party to deviate from City standards after the contract is executed
must be in writing.
1.3 Consultant shall provide labor, equipment and transportation necessary to complete all services agreed to
hereunder in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform
work pursuant to this Agreement shall be employees or sub consultants of Consultant. Upon request, Consultant
must provide City with a list of all subconsultants that includes the services performed by subconsultant and the %
of work performed by subconsultant (in dollars). Changes in Consultant’s proposed team as specified in the SOQ
or Scope of Services must be agreed to by the City in writing.
1.4 Consultant shall not begin work on any phase/task authorized under this Agreement until they are briefed on
the scope of the Project and are notified in writing to proceed. If the scope of the Project changes, either
Consultant or City may request a review of the changes with an appropriate adjustment in c ompensation.
1.5 Consultant will provide monthly status updates (project progress or delays ) in the format requested by the
City with each monthly invoice.
1.6 For design services, Consultant agrees to render the professional services necessary for the advancement
of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its
responsibilities, as defined and described in City’s General Conditions for Construction Contracts, excerpt attached
as Exhibit D.
1.6.1 The Consultant agrees to serve as the City’s Designer as defined in the General Conditions and will
consult and advise the City on matters related to the Consultant’s Scope of Services during the performance
of the Consultant’s services.
1.6.2 The Consultant agrees to prepare plans, specification, bid and contract documents and to analyze
bids and evaluate the documents submitted by bidders.
1.6.3 The Consultant agrees to assist the City in evaluating the qualifications of the prospective
contractors, subcontractors and suppliers.
1.7 For projects that require subsurface utility investigation:
1.7.1 The Consultant agrees to prepare and submit to the City prior to the 60% submittal a signed and
sealed report identifying all utilities within the project area at the Quality Level specified in Exhibit A and A-
1. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated
otherwise.
1.7.2 Utilities that should be identified include but are not limited to utilities owned by the City, local
franchises, electric companies, communication companies, private pipeline companies and 3 rd party
owners/operators.
Page 3 Rev. 19-5
1.8 For project with potential utility conflicts:
1.8.1 The Consultant agrees to coordinate the verification and resolution of all potential utility conflicts.
1.8.2 The Consultant agrees to prepare and submit a monthly Utility Coordination Matrix to the City.
1.9 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule
and budget as defined in Exhibit A, including completing the work in phases defined therein.
ARTICLE II – QUALITY CONTROL
2.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review).
The City reserves the right to retain a separate consultant to perform additional QCP services for the City.
2.2 The Consultant will perform QCP Reviews at intervals during the Project to ensure deliverables satisfy
applicable industry quality standards and meet the requirements of the Project scope. Ba sed on the findings of the
QCP Review, the Consultant must reconcile the Project Scope and the Opinion of Probable Cost (OPC), as
needed.
2.3 Final construction documents that do not meet City standards in effect at the time of the execution of
this Agreement may be rejected. If final construction documents are found not to be in compliance with this
Agreement, Consultant will not be compensated for having to resubmit documents.
ARTICLE III – COMPENSATION
3.1 The Compensation for all services (Basic and Additional) included in this Agreement and in the Scope of
Services for this Agreement shall not exceed $144,800.
3.2 The Consultant’s fee will be on a lump sum or time and materials (T&M) basis as detailed in Exhibit A and
will be full and total compensation for all services and for all expenses incurred in performing these services.
Consultant shall submit a Rate Schedule with their proposal. City and Consultant agree that the Rate Schedule is
considered confidential information that may be excluded from public disclosure under Texas Government Code
Chapter 552 as determined by the Texas Attorney General.
3.3 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule
and budget as defined in Exhibit A, including completing the work in phases defined therein.
3.4 The Director of Engineering Services may request the Consultant to undertake additional services or tasks
provided that no increase in fee is required. Services or tasks requiring an increase of fee will be mutually agreed
and evidenced in writing as an amendment to this contract. Consultant shall notify the City within three (3) days of
notice if tasks requested requires an additional fee.
3.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit B. Each
invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of
billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the
Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any
reimbursable expenses associated with the work . City will make prompt monthly payments in response to
Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act.
3.6 Principals may only bill at the agreed hourly rate for Principals (as defined in the Rate Schedule) when
acting in that capacity. Principals acting in the capacity of staff must bill at applicable staff rates.
Page 4 Rev. 19-5
3.7 Consultant certifies that title to all services covered by a Payment Request shall pass to City no later than
the time of payment. Consultant further certifies that, upon submittal of a Payment Request, all services for which
Payment Requests have been previously issued and payments received from City shall, to the best of Consultant’s
knowledge, information and belief, be free and clear of liens, claims, security in terests or encumbrances in favor of
Consultant or other persons or entities making a claim by reason of having provided labor or services relating to this
Agreement. CONSULTANT SHALL INDEMNIFY AND HOLD CITY HARMLESS FROM ANY LIENS, CLAIMS,
SECURITY INTERESTS OR ENCUMBRANCES FILED BY ANYONE CLAIMING BY, THROUGH OR UNDER THE
ITEMS COVERED BY PAYMENTS MADE BY CITY TO CONSULTANT.
3.8 The final payment due hereunder shall not be paid until all reports, data and documents have been
submitted, received, accepted and approved by City. Final billing shall indicate “Final Bill – no additional
compensation is due to Consultant.”
3.9 City may withhold compensation to such extent as may be necessary, in City’s opinion, to protect City from
damage or loss for which Consultant is responsible, because of:
3.9.1 delays in the performance of Consultant’s work;
3.9.2 failure of Consultant to make payments to subconsultants or vendors for labor, materials or
equipment;
3.9.3 damage to City; or
3.9.4 persistent failure by Consultant to carry out the performance of its services in accordance with this
Agreement.
3.10 When the above reasons for withholding are removed or remedied by Consultant, compensation of the
amount withheld shall be made within 30 days. City shall not be deemed in default by reason of withholding
compensation as provided under this Agreement.
3.11 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any
phase or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required
to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided
herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures
as required by the terms of this Agreement, any such claim shall be waived.
3.12 Request of final compensation by Consultant shall constitute a waiver of claims except those previously
made in writing and identified by Consultant as unsettled at the time of final Payment Request.
3.13 All funding obligations of the City under this Agreement are subject to the appropriation of funds in its annual
budget. The City may direct the Consultant to suspend work pending receipt and appropriation of funds. The right
to suspend work under this provision does not relieve t he City of its obligation to make payments in accordance with
section 3.5 above for services provided up to the date of suspension.
ARTICLE IV – TIME AND PERIOD OF SERVICE
4.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date).
4.2 This service shall be for a period of ____ years beginning on the Effective Date. The Agreement may be
renewed for up to _____ one-year renewal options upon mutual agreement of the parties to be evidenced in writing
prior to the expiration date of the prior term. Any renewals shall be at the same terms and conditions, plus any
approved changes.
Page 5 Rev. 19-5
4.3 The Consultant agrees to begin work on those authorized Services for this contract upon receipt of the
Notice to Proceed from the Director of Engineering Services. Work will not begin on any phase or any Additional
Services until requested in writing by the Consultant and written authorization is provided by the Director of
Engineering Services.
4.4 Time is of the essence for this Agreement. Consultant shall perform and complete its obligations under this
Agreement in a prompt and continuous manner so as to not delay the W ork for the Project, in accordance with the
schedules approved by City. The Consultant and City are aware that many factors may affect the Consultant’s
ability to complete the services to be provided under this agreement. The Consultant must notify the City within ten
business days of becoming aware of a factor that may affect the Consultant’s ability to complete the services
hereunder.
4.5 City shall perform its obligations of review and approval in a prompt and continuous manner so as to not
delay the project.
4.6 This Agreement shall remain in force for a period which may reasonably be required for completion of the
Project, including any extra work and any required extensions thereto, unless terminated as provided for in this
Agreement. For construction design services, “completion of the Project” refers to acceptance by the City of the
construction phase of the Project, i.e., Final Completion.
ARTICLE V – OPINIONS OF COST
5.1 The Opinion of Probable Cost (OPC) is computed by the Consultant and includes the total cost for
construction of the Project.
5.2 The OPC does not include the cost of the land, rights-of-way or other costs which are the responsibility of
the City.
5.3 Since Consultant has no control over a construction contractor’s cost of labor, materials or equipment, or
over the contractor’s methods of determining prices, or over competitive bidding or market conditions, Consultant’s
opinions of probable Project Cost or Construction Cost provided herein are to be made on the basis of Consultant’s
experience and qualifications and represent Consultant’s best judgment as a design professional familiar with the
construction industry, but Consultant cannot and does not guarantee proposals, bids or the construction cost shall
not vary from the OPC prepared by Consultant.
ARTICLE VI – INSURANCE REQUIREMENTS
6.1 Consultant must not commence work under this Agreement until all insurance required has been obtained
and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence
work until all similar insurance required of any subcontractor has been obtained.
6.2 Insurance Requirements are shown in EXHIBIT C.
ARTICLE VII – INDEMNIFICATION
Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials,
officers, agents, employees, excluding the engineer or architect or that person’s agent, employee
or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and
all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the
extent that the damage is caused by or results from an act of negligence, intentional tort,
intellectual property infringement or failure to pay a subcontractor or supplier commi tted by
Page 6 Rev. 19-5
Consultant or its agent, Consultant under contract or another entity over which Consultant
exercises control while in the exercise of rights or performance of the duties under this
agreement. This indemnification does not apply to any liability resulting from the negligent acts or
omissions of the City or its employees, to the extent of such negligence.
Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and
against any and all claims, damages, liabilities or costs, including reasonable attorney fees and
court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of
contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or
breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s
fees in proportion to the Consultant’s liability.
Consultant must advise City in writing within 24 hours of any claim or demand against City or
Consultant known to Consultant related to or arising out of Consultant’s activities under this
Agreement.
ARTICLE VIII – TERMINATION OF AGREEMENT
8.1 By Consultant:
8.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience
of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this
Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days
by delivering a Notice of Termination to the City.
8.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement.
8.2 By City:
8.2.1 The City may terminate this agreement for convenience upon seven days written notice to the
Consultant at the address of record.
8.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If
Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently
cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to
perform under this agreement, the City may terminate the agreement for cause upon seven days written
notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject
any and all proposals submitted by Consultant for up to two years.
8.3 Termination Procedure
8.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the
notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period,
Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the
performance of this Agreement. Within 30 calendar days after receipt of the Notice o f Termination, unless
Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in
detail the services performed under this Agreement prior to the effective date of termination. City retains the
option to grant an extension to the time period for submittal of such statement.
8.3.2 Consultant shall submit all completed and/or partially completed w ork under this Agreement,
including but not limited to specifications, designs, plans and exhibits .
Page 7 Rev. 19-5
8.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City
may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time &
Materials calculation or Consultant and City's estimate of the proportion of the total services actually
completed at the time of termination. There will be no compensation for anticipated profits on services not
completed.
8.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expe nditure of
public funds. The failure of Consultant to comply with the submittal of the statement and documents, as
required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for
services performed under this Agreement.
ARTICLE IX – RIGHT OF REVIEW AND AUDIT
9.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of
Consultant’s records relating to the performance of the Work under this Agreement, during the ter m of this
Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee,
which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its
records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute
under this Agreement, then such retention period shall extend until final resolution of the dispute.
9.2 Consultant’s records include any and all information, materials and data of every kind and character
generated as a result of and relevant to the Work under this Agreement (Consultant’s Records). Examples include
billings, books, general ledger, cost ledgers, invoices, production sheets, documents, co rrespondence, meeting
notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily
diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, and
any and all other agreements, sources of information and matters that may, in City’s and Consultant’s reasonable
judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any
Agreement Documents.
9.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s Records only during
Consultant’s regular business hours. Consultant agrees to allow City’s designee access to all of Consultant’s
Records, Consultant’s facilities and Consultant’s current employees, deemed necessary by City or its designee(s),
to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work
space necessary to City or its designees to conduct such audits, inspections or examinations.
9.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract.
ARTICLE X – OWNER REMEDIES
10.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to
pursue its actual damages and any other remedy allowed by law. This includes but is not limited to:
10.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful
completion of the Project, which includes failure of subconsultants to meet contractual obligations;
10.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal
governments, such that subsequent compliance costs exceed expenditures that would have been involved
had services been properly executed by the Consultant.
10.1.3 Losses are incurred because of errors and /or omissions in the design, working drawings,
specifications or other documents prepared by the Consultant to the extent that the financial losses are
greater than the City would have originally paid had there not been errors and /or omissions in the
documents.
Page 8 Rev. 19-5
10.2 When the City incurs non-value added work costs for change orders due to design errors and/or omissions,
the City will send the Consultant a letter that includes:
(1) Summary of facts with supporting documentation;
(2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense;
(3) Calculation of non-value added work costs incurred by the City; and
(4) Deadline for Consultant’s response.
10.3 The Consultant may be required to revise bid documents and re -advertise the Project at the Consultant’s
sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the
revision or the actual number of changes due to the Consultant’s errors or omissions.
10.4 The City may withhold or nullify the whole or part of any payment as detailed in Article III.
ARTICLE XI – CONSULTANT REMEDIES
11.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national
emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond
Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost
due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in
writing with a documented reason for granting the extension.
11.2 The City agrees that the Consultant is not r esponsible for damages arising from an y cause beyond
Consultant’s reasonable control.
11.3 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as
provided in this Agreement.
ARTICLE XII – CLAIMS AND DISPUTE RESOLUTION
12.1 Filing of Claims
12.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events,
shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one
(21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general
nature of the Claim.
12.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall
be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the
truth and accuracy of the Claim.
12.1.3 The responsibility to substantiate a claim rests with the party making the Claim.
12.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to
discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to
Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30)
calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial
request for remedy or (iii) request Mediation.
12.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed
diligently with performance of the Agreement, and City shall continue to make payments in accordance with
this Agreement.
Page 9 Rev. 19-5
12.2 Mediation
12.2.1 All negotiations pursuant to this clause are confidential and sh all be treated as compromise and
settlement negotiations for purposes of applicable rules of evidence.
12.2.2 Before invoking mediation, the Parties agree that they shall first try to resolve any dispute arising out
of or related to this Agreement through discussions directly between those senior management
representatives within their respective organizations who have overall managerial responsibility for similar
projects. This step shall be a condition precedent to the use of mediation. If the parties’ senior
management representatives cannot resolve the dispute within thirty (30) calendar days after a Party
delivers a written notice of such dispute, then the Parties shall proceed with the mediation process
contained herein.
12.2.3.1 In the event that City or Consultant shall contend that the other has committed a material
breach of this Agreement, the Party alleging such breach shall, as a condition precedent to
filing any lawsuit, request mediation of the dispute.
12.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence
no less than thirty (30) or more than ninety (90) calendar days following the date of the
request, except upon agreement of both parties.
12.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the
identity of the mediator or mediators within thirty (30) calendar days of the request for
mediation, all conditions precedent in this Article shall be deemed to have occurred.
12.2.3.4 The parties shall share the mediator’s fee. Venue for mediation shall be Nueces County,
Texas. Any agreement reached in mediation shall be enforceable as a settlement
agreement in any court having jurisdiction thereof. No provision of this Agreement shall
waive any immunity or defense. No provision of this Agreement is a consent to suit.
12.3 In calculating the amount of any Claim or any measure of damages for breach of contract, the following
standards shall apply both to claims by Consultant and to claims by City:
12.3.1 In no event shall either Party be liable, whether in contract or tort or otherwise, to the other Party for
loss of profits, delay damages or for any special incidental or consequential loss or damage of any nature
arising at any time or from any cause whatsoever;
12.3.2 Damages are limited to extra costs specifically shown to have been directly caused by a proven
wrong for which the other Party is claimed to be responsible .
12.4 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for
payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties
expressly waive any claim to attorney’s fees should litigation result from any dispute between the parties to this
Agreement.
12.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO
WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED
TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW.
Page 10 Rev. 19-5
ARTICLE XIII – MISCELLANEOUS PROVISIONS
13.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this
Agreement contract to any other person and/or party without the prior written consent of the other party, except for
routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services
under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the
partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City
may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without
written consent of the City.
The City will not pay the fees of expert or technical assistance and consultants unless such employment, including
the rate of compensation, has been approved in writing by the City.
13.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all
information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a
result of this Agreement, including contract documents (plans and specifications), drawings and submittal data.
Consultant may make a copy for its files. Any reuse by the City, without specific written verification or adaptation by
Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any
modification of the plans will be evidenced on the plans and be signed and sealed by a licensed professional prior
to re-use of modified plans.
13.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the
professional skill and care ordinarily provided by competent licensed professionals practicing under the same or
similar circumstances and professional license; and performed as expeditiously as is prudent considering the
ordinary professional skill and c are of a competent engineer or architect.
13.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or
certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings,
pre-bid meetings and preconstruction meetings.
13.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be
that of independent contractor. City may explain to Consultant the City’s goals and objectiv es in regard to the
services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these
goals and objectives are to be met.
13.6 Entire Agreement. This Agreement represents the entire and integrated Agreement betwee n City and
Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This
Agreement may be amended only by written instrument signed by both the City and Consultant.
13.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other
than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering
into this Agreement.
13.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and
complete the Disclosure of Interests form.
13.9 Certificate of Interested Parties. For contracts greater than $50,000, Consultant agrees to comply with
Texas Government Code section 2252.908 and co mplete Form 1295 Certificate of Interested Parties as part of this
agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at
https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm . The form must then be printed, signed and
filed with the City. For more information, please review the Texas Ethics Commission Rules at
https://www.ethics.state.tx.us/legal/ch46.html.
Page 11 Rev. 19-5
13.10 Conflict of Interest. Consultant agrees, in compliance with Chapter 176 of the Texas Local Government
Code, to complete and file Form CIQ with the City Secretary’s Office. 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.
13.11 Title VI Assurance. The Consultant shall prohibit discrimination in employment based upon race, color,
religion, national origin, gender, disability or age.
13.12 Controlling Law. This Agreement is governed by the laws of the State of Texas without regard to its conflicts
of laws. Venue for legal proceedings lies exclusively in Nueces County, Texas. Cases must be filed and tried in
Nueces County and cannot be removed from Nueces County.
13.13 Severability. If, for any reason, any one or more Articles and/or paragraphs of this Agreement are held
invalid or unenforceable, such invalidity or unenforceability shall not affect, impair or invalidate the remaining
Articles and/or paragraphs of this Agreement but shall be confined in its effect to the specific Article, sentences,
clauses or parts of this Agreement held invalid or unenforceable, and the invalidity or unenforceability of any Article,
sentence, clause or parts of this Agreement, in any one or more instance, shall not affect or prejudice in any way
the validity of this Agreement in any other instance.
13.14 Conflict Resolution Between Documents. Consultant hereby agrees and acknowledges if anything
contained in the Consultant-prepared Exhibit A, Consultant’s Scope of Services, or contained in any other
document prepared by Consultant and included herein, is in conflict with Articles I-XIII of this Agreement (Articles),
the Articles shall take precedence and control to resolve said conflict.
CITY OF CORPUS CHRISTI
____________________________________
Jeff H. Edmonds, P. E., Date
Director of Engineering Services
APPROVED AS TO LEGAL FORM
BURNS & MCDONNELL ENGINEERING COMPANY,
INC.
_____________________________________
Stephan L. Nalefski, Vice President Date
General Manager, Environmental Services
9400 Ward Parkway
Kansas City, MO 64114
(816) 822-3807 Office
snalefski@burnsmcd.com____________________________________
Assistant City Attorney Date
ATTEST
____________________________________
City Secretary Date
8/8/19
Page 12 Rev. 19-5
19060A Solid Waste Operational Assessment (Project No. 19060A)
Burns & McDonnell
Contract
$144,800
Fund Name Accounting Unit Account Activity Account
Category Amount
Solid Waste Operating 1020-12500-031 530000 19060-A-1020-EXP 30000 $144,800
Total $144,800
8911 Capital of Texas Highway \ Building 3, Suite 3100 \ Austin, TX 78759
O 512-872-7130 \ F 512-872-7127 \ burnsmcd.com
August 7, 2019
Mr. Jeff Edmonds, PE
Director of Engineering
City of Corpus Christi - Engineering Services Dept.
P. O. Box 9277
Corpus Christi, Texas 78469
Re: Project Number 19060A Solid Waste Operational Assessment – Proposal
Dear Mr. Edmonds:
Burns & McDonnell is pleased to offer our services to the City of Corpus Christi (City) based on our
firm being selected by the City in response to the Request for Qualifications 2019-01 for the Solid
Waste Operational Assessment. For this project, we will develop a solid waste cost of service, a review
of the transfer station operations, and provide procurement consulting support for the landfill, recycling
processing and composting operations.
Phase 1 will address all aspects of the project. Efforts associated with the cost of service analysis and
transfer station operations review are included in Phases 2 – 4. The procurement support services are
described in Phase 5. Phase 6 identifies potential additional services the City might consider in the
future, but which are not included in the Schedule and Budget at this time. This letter provides a scope
of work, project timeline and a schedule of fees associated with the performance of these services.
SCOPE OF WORK
This scope of work presents our proposed approach to completing the project for the City.
Phase 1: Information Request and Kick-off Meeting
Task 1A: Information Request and Preliminary Data Review
Following receipt of the Notice to Proceed, Burns & McDonnell will provide the City with a detailed
data request that will encompass data needs for completing the study. The data request will itemize our
needs for understanding the operational, technical, contractual and financial considerations that must be
addressed. This task also includes organization and preliminary analysis of all data received. We
recognize that the City may not have all information requested readily available or may track
information differently than requested. We will work with the appointed Project Manager to arrive at
reasonable substitutes for the key data, if needed.
Task 1B: Establish a Project Task Force
In order to gain a diverse perspective and increase buy-in for the outcomes of this project, we
recommend that the City establish a Project Task Force (PTF) to participate throughout the process. The
Exhibit "A"
Page 1 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 2
PTF would ideally include 5 – 8 key representatives from diverse roles and levels of responsibility
within the City, including senior management. Based on experience applying this approach with other
cities, it is our general recommendation that participants include:
► Solid Waste Director
► Solid Waste Assistant Director(s)
► Managers for each operation included in the review
► Financial Services Manager
► City Manager’s Representative
► 1 – 2 Additional key staff for the procurement phase from the City’s Legal and Purchasing
Departments (for Phase 5)
The PTF would participate in the kick-off meeting, help facilitate data collection, provide feedback on
preliminary findings, and provide support to our Project Team throughout the project. By involving a
variety of individuals with a wide range of skills and responsibilities, a complete picture of the solid
waste system can be developed more quickly. The diverse experience and concerns of the participants
will help identify problem areas and contribute meaningful input to the solutions. Full participation
from the PTF members should also be expected to increase buy-in and would speed implementation of
the project findings.
Task 1C: Kick-off Meeting and Project Management
Prior to commencing the study, members of the Project Team would conduct a kick-off meeting with
key City staff. At this kick-off meeting we would discuss the project work plan, key issues to be
addressed, key findings from previous engagements as well as confirm the timing associated with the
various project tasks.
We would discuss our initial data request (as previously described) that we would have provided to the
City staff 7 to 14 days prior to the kick-off meeting. Burns & McDonnell will provide the agenda and
any handout materials at least two days in advance.
During the meeting, we will also identify primary contacts for our Project Team and the City and
establish protocol for the exchange of information and the resolution of issues that arise in the normal
course of this engagement. To facilitate effective communication between Project Team members and
the City throughout the course of this project, it is proposed that Burns & McDonnell will:
► Schedule and participate in periodic conference calls as needed to discuss project matters (as
identified in the specific tasks of this scope of work)
► Provide periodic status updated via electronic format
► Be available for other communication(s) as needed
Exhibit "A"
Page 2 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 3
Task 1 Deliverables
► Preliminary data request
► Electronic copies of the kick-off meeting agenda, handouts, and follow-up summary
► Participation of Burns & McDonnell Project Manager and key project staff in kick-off meeting
Phase 2: Cost of Service and Rate Design
In Burns & McDonnell’s experience it is beneficial to complete a cost of service study of the solid waste
operation as a part of a solid waste operations review. A cost of service study provides a clear
understanding of the current operation’s cost of providing service. By developing a baseline operational
cost, Burns & McDonnell can value the financial savings of making operational changes for the transfer
station (as described in Phase 3). This methodology is consistent with other operational studies Burns &
McDonnell has completed for communities across the United States.
Task 2A: Current Cost of Service Analysis
A “Test Year” is a common term in cost of service studies that refers to an adjusted fiscal year budget
that is used as a basis for determining cost of service and setting rates. Burns & McDonnell will
collaborate with City staff to select the most appropriate annual budget for the Test Year. Based on
preliminary discussions with City staff, we would suggest utilizing FY 2020 as the basis for the Test
Year. The Test Year should be representative of typical conditions, with adjustments for any unusual or
one-time expenses. Any projected non-recurring expenses or revenues will be identified and
incorporated into the financial forecast. Burns & McDonnell will work with the City to develop an
accurate Test Year revenue requirement reflecting the revenue required to meet all operating and
maintenance (O&M) costs, debt service (including coverage and reserve requirements), working capital
requirements, and capital expenditures. The goal of this task will be to document the current full cost of
the City’s various solid waste services and to allocate these costs to the appropriate cost centers. As part
of this task, Burns & McDonnell will:
► Review current and historical financial data collected as part of Phase 1
► Summarize and analyze the current solid waste fees
► Develop a revenue requirement for the “Test Year,” which will include, but is not limited to, the
following types of costs:
o Operational and maintenance;
o General fund and administrative overhead;
o Capital costs; and
o Current and anticipated long-term liabilities and debt obligations.
► Work with the City to define cost centers: Cost centers will be based on the primary services
provided by the Solid Waste Department. We will review the categories included in the Section
Exhibit "A"
Page 3 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 4
1.5 of the 2013 Study and update as necessary. We understand that additional categories may
include dead animal collection, graffiti removal and sludge hauling operations
► Work with the City to identify the components and measurements that will be built into the cost
allocation model
► Develop an infrastructure and vehicle replacement analysis to account for growth and
replacement
► Assist the City in developing or modifying a cost allocation strategy that captures capital, debt,
operations, and maintenance costs, as well as indirect costs (administration and overhead) for
each of the targeted services
► Account for closure and post closure costs for the Cefe Valenzuela Landfill and the JC Elliott
transfer station and closed landfill, based on the results of a separate analysis completed by the
City’s landfill engineer
► Account for the cost of transfer station and account for the cost of providing services to other
city departments
► Allocate cost centers to customer classes
► Determine billing units
► Calculate the cost of service
For equipment and personnel that serve more than one function, we will assist City staff in the
development of an appropriate strategy to allocate those costs among the programs being evaluated. It
will be imperative to work closely with financial and operational personnel during the cost allocation
process to allow that all direct and indirect costs are apportioned in an appropriate and meaningful way
among the programs being evaluated. A brief written summary of our approach, methodology and
observations about cost allocation will be included in the draft report.
Task 2A Deliverables
► Four to six-hour meeting with City staff (same trip as the kick-off meeting)
► A Test Year revenue requirement
► Calculation of the Test Year cost of service
► Conference call with City staff to discuss results of Task 2A
Task 2B: Determine Current Revenue
We will evaluate how much revenue is currently generated by the existing rate structure. We will assess
the overall revenue requirement compared to revenue generated under the current rate structure and
rates. We will complete this analysis based on a review of revenue received by the City for the various
services provided. We will independently estimate how much revenue should be generated by the
current billing units to estimate whether any under-recovering is occurring. The analysis will include an
evaluation of the impact of “free” collection and disposal services. This analysis will provide the City
Exhibit "A"
Page 4 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 5
with an understanding of how current rates are either over- or under recovering compared to the cost of
service for each customer class.
Task 2B Deliverables
► An analysis of current revenue generation
Task 2C: Forecasted Cost of Service Analysis
In addition to calculating the current cost of service for the Test Year, Burns & McDonnell will project
the future cost of service for a five-year time frame and will allocate these costs to the appropriate cost
centers. Burns & McDonnell will work in conjunction with the City to develop a five-year revenue
requirement and billing unit forecast. In order to develop the five-year revenue requirement for the City,
Burns & McDonnell will examine historical budgets and audited financials and, utilizing input from
City staff, will develop a forecast that incorporates “known and measurable” changes for the forecasted
period. This would include changes due to any current or anticipated statutory regulations.
Task 2C Deliverables
► A “base case” five-year revenue requirement forecast
► The calculation of the cost of service in each year
Task 2D: Rate Design
We will address the formulation of a rate design plan with a clear and distinct understanding of the
City's overall goals and objectives. The City's goals and objectives should serve as the foundation for the
development of rate options as rate design enables the City to meet its service pricing objectives. Pricing
objectives could include, but would not be limited to:
► Cost of service recovery
► Revenue stability
► Cost containment
► Adequate General Fund support through transfers
► Adequate funding for solid waste reserves (capital and operating)
► Economic development
► Encouragement of diversion
We will work with City staff to evaluate the City's current fees and discuss the merits of various
alternative rate structures.
Task 2D Deliverables
► Rate recommendations
► Conference call with City staff to discuss results of Task 2D
Exhibit "A"
Page 5 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 6
► Report section that summarizes results from Tasks 2A – 2D
Task 2E: Provision of an Electronic Cost-of-Service Model
Upon completion of this Study, we will provide the City with a copy of the "base" five-year econometric
model in Microsoft Excel. The model will provide/allow the following:
► Historical and projected costs distributed by service type
► Determine if the current rate structure is adequate to support system growth and whether the
current rates under or over recover costs for the level of service presently provided
► Calculate the effects of changes in operating or capital expenses on each year's projected cost of
service and would reflect all recommendations relating to allocation and/or changes to fees and
fee structures
► Allow the City to update rates on an annual basis
► Allow the City to prepare a number of “what if scenarios” by making various assumptions
relating to the costs and revenues the City will earn over the five-year time frame
The ability to evaluate the financial feasibility of various rate charges will be built into the model, such
that the City can understand the over/under-recovery projected as a result of the revenue and cost
assumptions contained within the model.
The econometric model will include a written user's guide for assistance with the model. We will also
conduct a training session on the use of the model. The budget for this task assumes that the training will
occur via webinar. However, if the City has our project team members attend other meetings with the
City in person, we can conduct the training in person without an additional cost to the base fee for this
task.
Task 2E Deliverables
► Electronic copy of the model in Microsoft Excel
► Written user's guide of the model
► One training session via webinar
Phase 3: Transfer Station Operational Assessment
For Phase 3 Burns & McDonnell will complete a comprehensive operational assessment of the City’s
transfer station and hauling operation,
Task 3A: J.C. Elliott Transfer Station and Hauling Operation
During the same trip as the kick-off meeting for Phase 1, Burns & McDonnell will conduct one day of
field observations of the transfer station and hauling operation. Following the field observations, Burns
Exhibit "A"
Page 6 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 7
& McDonnell will analyze the information collected, both from Phase 1 and the field observations, to
evaluate the operational efficiency of the City’s transfer station and hauling operations.
For the transfer station review, performance metrics to be addressed and compared to industry practices
during the review of the facility include, but are not limited to, the following:
► Facility configuration and condition
► Equipment
► Personnel
► Waste hauling
► Operating efficiency
► Safety issues
► Capacity
► Cost of transfer station operation
Burns & McDonnell will also provide the City an understanding of the financial impact of more heavily
utilizing the transfer station for its residential collection operation instead of direct hauling to the
landfill.
Task 3B: Workshop to Discuss Key Findings
Burns & McDonnell will hold a workshop via conference call with the PTF to present the preliminary
key findings of the transfer station evaluation. The discussion will provide us an opportunity to report
on what we experienced, and to confirm that our observations were consistent with standard operating
procedures. We will provide a bulleted summary of key findings and recommendations from our
analyses.
Phase 3 Deliverables
► Bulleted summary of key findings and recommendations
► Conference call to discuss key findings
► Report sections on operational issues to be included in the draft and final reports
Phase 4: Report
Task 4A: Draft Report
Upon completion of the analyses outlined above, Burns & McDonnell will develop a Draft Report
outlining preliminary recommendations and conclusions. Burns & McDonnell is committed to making
sure the City thoroughly understands the recommendations in the draft report. Burns & McDonnell will
provide the findings to the City staff and allow sufficient time to have their concerns and/or questions
addressed. Burns & McDonnell will have a conference call with City staff to discuss the report. Burns
Exhibit "A"
Page 7 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 8
& McDonnell would request that written comments be provided as one submittal from City staff to
obtain consensus regarding staff comments.
Task 4B: Final Report
Upon receipt of City staff recommendations and comments, Burns & McDonnell will make appropriate
changes and provide the City with a Final Report. We will issue the Final Report within three weeks of
receiving comments from the City.
Phase 4 Deliverables
► Electronic version of the Draft Report
► One conference call to discuss the Draft Report
► Electronic version of the Final Report
Phase 5: Procurement Assistance for Landfill Operations, Recycling Processing and Composting
Processing Services
Phase 6 focuses on providing procurement assistance to the City for landfill operations, recycling
processing and composting processing services. The following describes the options that would be
considered for each aspect of the procurement:
► Landfill operations: Contractor would provide landfill operational services at the Cefe
Valenzuela Landfill, similar the City’s current arrangement with Republic Services.
► Recycling processing: Delivery methods for this contract would include both a processing and
marketing services agreement (PSA) and design build operate (DBO) contract.
► Composting operations: Delivery methods for this contract would include both a processing
and marketing services agreement (PSA) and design build operate (DBO) contract.
The following defines the delivery methods described for the landfill, recycling processing and
composting operations:
► Operations Agreement (Operations): This option is specific to the landfill, since its already a
city facility that is contracted to a private company.
► Processing and Marketing Services Agreement (PSA): This option would allow vendors to
propose to process and market City materials collected through the (1) curbside single-stream
recycling program and/or (2) curbside brush or future organics program at a fully private facility
on private land. The City of Corpus Christi presently has a PSA in place for recycling
processing. The RFP will provide flexibility for the PSA to be provided at an existing or new
facility.
Exhibit "A"
Page 8 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 9
► Design Build Operate (DBO): This option would allow vendors propose to design, build and
operate a single-stream processing facility and/or composting operation that would be
constructed at a city facility (such as the Cefe Valenzuela Landfill) and financed by either the
vendor, the City, or a combination of the two. The vendor would finance the processing
equipment and rolling stock and would operate the facility.
Subject to discussions with the PTF, this procurement will provide vendors with the opportunity to
propose on any combination of landfill operations, recycling processing and composting processing
services, as well as whether services for recycling and/or composting will be provided via PSA or DBO.
Due to the differing levels of complexity of these options, the procurement documents will be structured
to address common elements of the PSA options and unique elements of the DBO option. Similarly,
within specific tasks, we have structured our scope of services to highlight issues and activities that
would apply to both the PSA and DBO and services that would only apply to the more complex DBO.
To the extent appropriate, we have also structured our scope of services to defer the details for certain
issues to later tasks. For example, we are proposing to develop key contractual terms and conditions to
be included in the procurement document, with preparation of a draft contract later in the process. This
approach will help to accelerate the schedule and reduce upfront consulting fees and will allow the City
to gain an understanding of the DBO proposals prior to expending the resources for developing a DBO
contract. If the City decides to move forward with DBO, that work can occur on an optional basis
during Task 6F.
Task 5A: Procurement Workshop
Burns & McDonnell will conduct a procurement workshop with key City staff, which would be
expected to include staff from the PTF and the Solid Waste, Legal and Purchasing Departments. The
procurement workshop is designed to discuss the advantages and disadvantages of various aspects of the
procurement process in order to assist the Project Team in determining how to structure the procurement
documents. The procurement workshop may include discussion of the following:
Issues Relevant to Operations, PSA and DBO
► Type of procurement process (i.e., one-step or multi-step RFP process)
► Administrative aspects of the procurement process such as schedule, submittal requirements
(content and format), contact persons, and handling of proprietary/confidential information;
► Evaluation process, including minimum requirements to merit a detailed evaluation as well as
evaluation criteria and weighting
► Scope of services to be provided by the successful vendor(s)
► Initial and renewal terms of the agreement
► Extent of rate adjustments to be included in the agreement
► Description of the recycling and waste stream
Exhibit "A"
Page 9 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 10
► Technology and performance requirements (processing capacity, equipment/technology, ability
to process materials in the City’s program, recovery rate)
► Facility location if not located at the Cefe Valenzuela Landfill and consideration of multiple
processing locations
► Operations (access for City vehicles, minimum turn-around times for City’s vehicles)
► Description of economic incentives (such as the New Market Tax Credit)
► Basis for revenue sharing and processing fees, as well as consideration of reduced landfill tip
fees in exchange for better financial terms
► Disposal of residual material from processing operations
Issues Relevant to DBO Only
► Public private partnership scenarios to be considered, including ownership options and related
issues for the land, the facility, project financing and the equipment
► Facility siting, infrastructure and state and local permitting
► Performance based facility design, construction and operation requirements and specifications
(e.g. LEED, sizing of processing equipment, tipping floor, access for vehicles, ventilation,
building requirements, lighting, dust control, building foundation, landscaping)
► Terms and conditions associated with processing non-City materials and/or regarding
supplemental site activities (e.g., use of the site for housing a fleet of collection vehicles)
► Wage requirements for employees
► Other issues pertinent to a resource recovery procurement
Burns & McDonnell requests that the City arrange for a meeting room and coordinate attendance to
ensure that appropriate individuals are present. Burns & McDonnell will develop an agenda and any
handout materials in advance of the workshop to provide an opportunity for City staff to consider the
issues prior to the workshop. Our budget is based on four Project Team staff attending the workshop,
with the workshop lasting approximately two days. If necessary, the workshop could be segmented into
three, consecutive sessions to accommodate attendance by different City representatives to different
parts of the workshop. In addition, the Project Team will deliver a memorandum summarizing the key
decisions made during the workshop and action items to be completed by the Project Team and City
staff.
Task 5A Deliverables
► On-site workshop
► Workshop agenda and handouts, including a list of issues to be discussed
► Memorandum summarizing the workshop
Exhibit "A"
Page 10 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 11
Task 5B: Preparation of Procurement Documents
As part of this task, Burns & McDonnell will assist the City with the development of the procurement
documents. For all parts of this task, Burns & McDonnell will coordinate with the City’s Purchasing
and Legal Departments and will rely on the City for any standard language to be included in the
procurement documents. This task has been divided between developing the RFP and developing key
terms and conditions that will be included in the RFP and will form the basis of a contract. We will also
structure the documents to reflect the three included services: landfill operations, recycling processing
and composting processing services.
We will prepare two drafts and one final version of the RFP. Any additional drafts will be considered
Additional Services. Upon delivery of the first draft version of the RFP, we will participate in
conference call with City staff to discuss the first draft procurement documents. Our budget is based on
a half-day conference call, to allow for a thorough page-turn of the RFP and to provide opportunity for
in-depth discussion of key contract terms and conditions. If there are additional comments developed
outside of the conference call, the City will be responsible for consolidating comments to the draft
procurement documents from multiple reviewers for incorporation by the Project Team. Upon delivery
of the second draft version of the RFP, Burns & McDonnell will participate in a conference call with
City staff to discuss any additional comments. The City will be responsible for final production and
distribution of the procurement documents to potential proposers. The Project Team will assist the City
in notifying potential proposers in advance of the release of the RFP. Specifically, we will provide the
City with a listing of companies and contacts that may have an interest in the services being procured.
PREPARATION OF RFP
Burns & McDonnell will assist the City in the preparation of a Request for Proposals (RFP). As part of
the development of the RFP, we will prepare a draft version of the following elements of the RFP (as
well as outcomes from the workshop described in Task 6A):
Issues Relevant to Operations, PSA and DBO
► General terms and conditions of the RFP, including any standard terms and conditions provided
by the City
► Background information, including explanation of why the RFP is being developed, historical
program data, City demographic information, tonnage data, etc.
► Proposal format and content
► Proposal process, including schedule and evaluation criteria
► Schedule requirements
► Provision of processing services on an interim basis following expiration of the current
agreement (if applicable)
► Proposal response forms, including personnel, experience, cost, etc.
Exhibit "A"
Page 11 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 12
► Other sections of the RFP
Issues Relevant DBO Only
► Description of the potential location and conditions at the City identified location for a recycling
facility or composting operation (e.g. Cefe Valenzuela Landfill):
o Existing site topography and subsurface conditions
o Existing utilities adjacent to, or on, the Site (water, wastewater, gas, electrical)
o Proposed site layout including facility location on site, roadways, all utilities, site
grading, etc.
o Description and status of state and local permits to be required
► Public private partnerships scenarios to be considered by the City (ownership of land, facility,
project financing, and equipment)
► Option to have the vendor design and build infrastructure that would be funded by the City
In developing the RFP, our team will focus on describing performance-based criteria (as opposed to
prescriptive criteria) for which the vendors will be evaluated. For example, the RFP may require that
the facility be LEED certified and the facility would be constructed to be fully functional for a period of
30 years. Under this approach, vendors would have the opportunity in their proposals to describe how
they would meet these requirements and would be evaluated in Task 6D. In some instances, the City
may prefer to include prescriptive criteria where site and design issues must be directly addressed.
PREPARATION OF KEY CONTRACT TERMS AND CONDITIONS
Given the broad range of potential contract types that will be considered in the procurement process
(Operations, PSA and DBO), the Project Team recommends including key contract terms and conditions
in the RFP in place of draft contracts. This will allow for an accelerated schedule and will minimize up-
front fees associated with developing three different draft contracts. In order to minimize negotiations
with proposers, it will be important for the terms and conditions to be clear and robust in representing
the City’s contractual position in the absence of a draft contract. The Project Team will prepare draft
terms and conditions that would apply to both partnership scenarios being considered, and that would
address the following specific elements of a future contract:
► Definitions
► Scope of Services
► Performance Benchmarks
► Pricing and Revenue Sharing
► Recordkeeping, Recording, Reports and Auditing
► Inspection Rights
► Equipment and Personnel Requirements (if applicable)
► Hours of Operation and Holidays
Exhibit "A"
Page 12 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 13
► Customer Service
► Public Outreach and Education
► Liquidated Damages
► Other terms and conditions, as appropriate
We have assumed that the City Attorney will review the key terms and conditions, which will be
developed in parallel with the RFP (as a first and second draft) and will be included in the final version
of the RFP. Depending on the preferred partnership scenario, we would assist the City Attorney’s office
with developing more detailed contract language during the contract negotiation process (as described in
Task 6F).
Task 5B Deliverables
► Two draft and one final version of the Request for Proposals inclusive of key terms and
conditions.
► Two conference calls to discuss the draft documents
Phase 5 Assumptions
There are a number of assumptions required in any procurement. For this assignment, the Project Team
notes that our proposal is based on the understanding that:
► The Project Team will coordinate with the City’s Purchasing Department and City Attorney’s
Office and will rely on the City for any standard City language to be included within the RFP.
► The City Attorney’s Office will provide all legal advice and will review the procurement
documents and prepare and negotiate the contract documents.
► City staff will be responsible for distribution of the procurement documents, advertising costs to
announce the procurement, and coordination of the receipt of the proposals.
Phase 6: Optional Services
Upon the City’s request and authorization, Burns & McDonnell may provide services described in Phase
6. The tasks described in Phase 6 are provided in a summarized manner. A more detailed scope of
services and fees can be provided for any task in Phase 6 upon request.
Operational Assessment Tasks
Burns & McDonnell may complete a comprehensive operational assessment of any of the following
solid waste and recycling operations/topics upon request from the City:
► Department wide
► Residential refuse collection
Exhibit "A"
Page 13 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 14
► Residential recycling collection
► Residential brush and bulky collection
► Cefe Valenzuela Landfill
► Organics and brush grinding operation
► Management of tires
Reporting and Presentation Tasks
Burns & McDonnell may provide the following reporting and presentation tasks upon request from the
City:
► Comparison to 2013 Study Key Financial Findings
► Develop implementation plan
► Develop PowerPoint summarizing study findings and recommendations
► Present to Findings to City Council and/or City Management
Procurement Tasks
Burns & McDonnell may provide the following procurement tasks upon request from the City:
► Pre-proposal meeting coordination and addendum preparation
► Evaluation of proposals
o Review and evaluate each proposer’s technical and operational capability (including
evaluation of proposed technology, proposed work plan, siting, permitting and
infrastructure)
o Review of proposer’s experience and references
o Evaluation of proposer’s financial stability and litigation history
o Evaluation of cost proposals, including proposed revenues sharing arrangements, via
Excel model
o Evaluation of exceptions taken to key terms and conditions and alternative contract
language and or service procedures submitted by proposers, if applicable
► Facilitation of Proposer Interviews
o Assist with identifying proposers to be interviewed
o Develop questions for proposer interviews
o Participate in proposer interviews
► Contract Negotiations
o On-site meetings with prospective provider(s)
o Conference calls with City staff and/or service provider(s)
o Update financial analysis to reflect negotiated rates and revenue sharing arrangements
o Review of proposed changes or amendments to contract terms and conditions
Exhibit "A"
Page 14 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 15
o Assist the City Attorney with drafting and/or reviewing portions of the contract, with the
understanding that the City Attorney will have the lead role to develop the contract(s)
o Other tasks identified by the City
► Other Procurement-Related Tasks
o City Council presentation(s) and stakeholder involvement implementation
o Implementation assistance
o Permitting and design for DBO contracts
o Financial analysis
o Additional meetings and/or workshops
o Construction monitoring and acceptance testing for DBO contracts
o Other requested services related to the procurement
PROJECT SCHEDULE
Based on the scope of work outlined above, Burns & McDonnell has developed the following project schedule.
TASK SCHEDULE
Phase 1: Project Initiation and Management
Task 1A: Preliminary Data Request and Analysis Issue within 10 days of NTP
Task 1B: Establish a Project Task Force Complete in month 1
Task 1C: Kick-off Meeting and Project Management Complete in month 1 (assuming timely
receipt of data from the City)
Phase 2: Cost of Service and Rate Design
Task 2A: Current Cost of Service Analysis Months 1 – 3
Task 2B: Determine Current Revenue Months 3 – 4
Task 2C: Forecasted Cost of Service Analysis Months 3 – 4
Task 2D: Rate Design Months 4 – 5
Task 2E: Provision of an Electronic Cost-of-Service Model Months 5 – 6
Phase 3: Transfer Station Operational Assessment
Task 3A: J.C. Elliott Transfer Station and Hauling Operation Months 1 – 3
Task 3B: Workshop to Discuss Key Findings Month 4
Phase 4: Report
Exhibit "A"
Page 15 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 16
Task 4A: Draft Report Months 5 – 6
Task 4B: Final Report Four weeks after receiving comments
Phase 5: Procurement Assistance for Landfill Operations, Recycling Processing and Composting
Processing Services
Task 5A: Procurement Workshop Month 3
Task 5B: Preparation of Procurement Documents Months 3 - 6
Exhibit "A"
Page 16 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 17
FEES
The fees associated with Phase 1 through Phase 5 of the Study are listed in the following table. Burns &
McDonnell will perform the above tasks for a fee of $144,800, including of professional fees and
expenses. Tasks will be invoiced on a lump-sum, percent complete basis.
TASK BUDGET
Phase 1: Project Initiation and Management
Task 1A: Preliminary Data Request and Analysis $2,700
Task 1B: Establish a Project Task Force $0
Task 1C: Kick-off Meeting and Project Management $5,000
Phase 2: Cost of Service and Rate Design
Task 2A: Current Cost of Service Analysis $16,600
Task 2B: Determine Current Revenue $5,400
Task 2C: Forecasted Cost of Service Analysis $7,000
Task 2D: Rate Design $6,900
Task 2E: Provision of an Electronic Cost-of-Service Model $3,500
Phase 3: Review Alternative Operational Options
Task 3A: J.C. Elliott Transfer Station and Hauling Operation $14,600
Task 3B: Workshop to Discuss Key Findings $2,800
Phase 4: Report
Task 4A: Draft Report $9,900
Task 4B: Final Report $3,900
Phase 5: Procurement Assistance for Landfill Operations, Recycling Processing and Composting
Processing Services
Exhibit "A"
Page 17 of 18
Mr. Jeff Edmonds
August 7, 2019
Page 18
CONCLUSION
Burns & McDonnell appreciates the opportunity to work with the City. Please contact Scott Pasternak
at (512) 872 – 7141 or Seth Cunningham at (512) 872 – 7134 to discuss any questions, or to determine
how we should proceed.
Sincerely,
Scott Pasternak
Senior Project Manager
Task 5A: Procurement Workshop $15,800
Task 5B: Preparation of Procurement Documents $50,700
Exhibit "A"
Page 18 of 18
Contract for Professional Services
EXHIBIT B
SAMPLE PAYMENT REQUEST FORM
Company Name
Billing Contact Info
Original Amend Amend Total Previous Current Total Remaining Percent
Basic Services:Contract No. 1 No. 2 Contract Invoice Invoice Invoiced Balance Invoiced
Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0%
Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0%
Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0%
Construction Admin Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0%
Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3%
Additional Services:
Permit Prepartion $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0%
Topographic Survey $5,000.00 $0.00 $0.00 $5,000.00 $0.00 $0.00 $0.00 $5,000.00 0.0%
ROW Acquisition Survey $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $0.00 $0.00 $1,000.00 0.0%
Environmental Issues $500.00 $0.00 $0.00 $500.00 $0.00 $0.00 $0.00 $500.00 0.0%
Public Meetings $1,200.00 $0.00 $0.00 $1,200.00 $0.00 $0.00 $0.00 $1,200.00 0.0%
Construction Observation $10,000.00 $0.00 $0.00 $10,000.00 $0.00 $0.00 $0.00 $10,000.00 0.0%
Traffic Control $0.00 $5,000.00 $0.00 $5,000.00 $0.00 $0.00 $0.00 $5,000.00 0.0%
Signalization Improvements $0.00 $0.00 $1,000.00 $1,000.00 $0.00 $0.00 $0.00 $1,000.00 0.0%
Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0%
Construction Inspection (T&M)$0.00 $0.00 $5,000.00 $5,000.00 $0.00 $0.00 $0.00 $5,000.00 0.0%
Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD
O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD
SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD
Subtotal Additional Services $19,700.00 $6,120.00 $6,000.00 $31,820.00 $500.00 $0.00 $500.00 $31,320.00 1.6%
Summary of Fees:
Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3%
Additional Services Fees $19,700.00 $6,120.00 $6,000.00 $31,820.00 $500.00 $0.00 $500.00 $31,320.00 1.6%
Total of Fees $25,700.00 $7,120.00 $7,250.00 $40,070.00 $1,500.00 $1,500.00 $3,000.00 $37,070.00 7.5%
Notes:
If needed, update this sample form based on the contract requirements.
If applicable, refer to the contract for information on what to include with time and materials (T&M).
COMPLETE PROJECT NAME
City Project No. XXXX
Invoice No. 12345
Invoice Date: MM/DD/YYYY
Billing Period: From XXXXX to YYYYY
Contract for Professional Services
EXHIBIT C
Insurance Requirements
Pre-Design, Design and General Consulting Contracts
1.1 Consultant must not commence work under this agreement until all required insurance has been
obtained and such insurance has been approved by the City. Consultant must not allow any
subcontractor to commence work until all similar insurance required of any subcontractor has been
obtained.
1.2 Consultant must furnish to the Director of Engineering Services with the signed agreement a copy
of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum
coverage by an insurance company(s) acceptable to the City’s Risk Manager. A waiver of subrogation
is required on all applicable policies. Endorsements must be provided with COI. Project name
and or number must be listed in Description Box of COI.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-written day notice of cancellation,
required on all certificates or by
applicable policy endorsements
Bodily Injury and Property Damage
Per occurrence - aggregate
PROFESSIONAL LIABILITY
(Errors and Omissions)
$1,000,000 Per Claim
If claims made policy, retro date must be
prior to inception of agreement, have
extended reporting period provisions and
identify any limitations regarding who is
insured.
1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City
with copies of all reports of any accidents within 10 days of the accident.
1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and
any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis,
by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's
rating of no less than A- VII. Consultant is required to provide City with renewal Certificates.
1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of
the replacement certificate of insurance to City at the address provided below within 10 business days of
said change. Consultant shall pay any costs resulting from said changes. All notices under this Article
shall be given to City at the following address:
City of Corpus Christi
Attn: Engineering Services
P.O. Box 9277
Corpus Christi, TX 78469-9277
Contract for Professional Services
1.6 Consultant agrees that with respect to the above required insurance, all insurance
policies are to contain or be endorsed to contain the following required provisions:
1.6.1 If the policy is cancelled, other than for nonpayment of premium, notice of such
cancellation will be provided at least 30 days in advance of the cancellation effective date
to the certificate holder.
1.6.2 If the policy is cancelled for n onpayment of premium, notice of such cancellation will be
provided within 10 days of the cancellation effective date to the certificate holder.
1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of coverage, Consultant
shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and
applicable endorsements to City. City shall have the option to suspend Consultant's performance should
there be a lapse in coverage at any time during this contract . Failure to provide and to maintain the
required insurance shall constitute a material breach of this contract.
1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and
maintain any insurance or policy endorsemen ts to the extent and within the time herein required, the City
shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until
Consultant demonstrates compliance with the requirements hereof.
1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant
may be held responsible for payments of damages to persons or property resulting from Consultant's or
its subcontractor’s performance of the work covered under this agreement.
1.10 It is agreed that Consultant's insurance shall be deemed primary and non-contributory with respect
to any insurance or self -insurance carried by the City of Corpus Christi for liability arising out of
operations under this agreement.
1.11 It is understood and agreed that the insurance required is in addition to and separate from any
other obligation contained in this agreement.
37
37
181
77
N
CITY COUNCIL EXHIBIT
CITY OF CORPUS CHRISTI, TEXAS
DEPARTMENT OF ENGINEERING SERVICES
Solid Waste Operational Assessment
Project Number: 19060ALOCATION MAP
NOT TO SCALE
CITYWIDE PROJECT
Engineering Services
Council Presentation
August 27, 2019
Solid Waste Operational Assessment
(Solid Waste Operational)
1
Engineering Services
Project Location
2
Engineering Services
Project Vicinity
3
Engineering Services
Project Scope
Comprehensive evaluation of Solid Waste Operations and the
landfill operations contract to identify potential improvements
and cost savings with advancements in industry practices. The
scope includes:
•Updating the 2013 Solid Waste Competitive Assessment and
Cost of Service Study (2013 Study
•Operation evaluations of include brush collection, refuse
collection,recycling collection/processing,and landfill
operations
•Analysis includes the user rate design
•Recommendations for improvements
4
Engineering Services
Project Schedule
5
Oct Nov Dec Jan Feb Mar Apr
2 0 2 0
Asessement
2 0 1 9
Projected Schedule reflects City Council award in October
2019 with anticipated completion in April 2020.
Engineering Services
Questions?
6
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM:Bill Mahaffey, Director of Gas Operations
BillM@cctexas.com
(361) 826-1801
Kim Baker, Director of Contracts and Procurement
KimB2@cctexas.com
(361) 826-3169
CAPTION:
Motion authorizing a lease-purchase with Vermeer Texas-Louisiana to purchase one
directional boring machine for an amount not to exceed $428,244.34, effective upon
issuance of a letter of acceptance, with first-year in the amount of $85,448.88 funding
available through the Gas Fund.
SUMMARY:
This motion authorizes a lease-purchase, from Vermeer Texas-Louisiana, for the
purchase of one directional boring machine for Gas Operations in the amount
$384,761.00, plus $43,483.34 in interest for a total amount not to exceed $428,244.34.
This directional boring machine is replacing a unit that is 10 years old, which is beyond
its useful life of 7 years.
BACKGROUND AND FINDINGS:
Gas Operations has an operational need to lease-purchase one directional boring
machine. This item will be replacing a unit that is 10 years old, which is beyond its useful
life of 7 years. This equipment is used by Gas Operations to install gas mains throughout
the city, in established areas and under streets with minimal disturbance to existing
grounds.
Contracts awarded through the BuyBoard Cooperative have been competitively procured,
and in compliance with Texas Local and State procurement requirements.
Lease Purchase of One Directional Boring Machine for Gas Operations
AGENDA MEMORANDUM
Action item for the City Council Meeting of August 27, 2019
ALTERNATIVES:
The equipment can be rented as needed. However, the cost may not be cost effective
long-term, and the equipment may not be readily available at the time required causing
delays with the installation of gas mains throughout the city in established areas and
under streets with minimal disturbance to existing grounds.
FISCAL IMPACT:
Financing for the lease-purchase of this directional boring machine is based on a sixty-
month term with an estimated interest rate of 4.20% for an annual estimated payment of
$85,448.88. The total estimated cost over the five-year period, including principal of
$384,761.00 and interest of $43,483.34 is $428,244.34. 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 amount not to exceed.
Total Lease Purchase Price:$384,761.00
Total estimated allowable interest for Lease:$ 43,483.34
Grand Total:$ 428,244.34
Funding Detail:
Fund:4130 Gas Fund
Organization/Activity:34130 Gas Construction
Mission Element:022 Gas Distribution System
Project # (CIP Only): N/A
Account:530190 Lease Purchase Payment
RECOMMENDATION:
Staff recommends approval of this motion authorizing the lease purchase with Vermeer
Texas-Louisiana for the purchase one directional boring machine for Gas Operations as
presented.
LIST OF SUPPORTING DOCUMENTS:
Price Sheet
City of Corpus Christi
Contracts and Procurement
Senior Buyer: Cynthia Perez
Price Sheet
Lease Purchase of One Directional Boring Machine for
Gas Operations
BUYBOARD Contract #515-16
UNIT EXTENDED
ITEM DESCRIPTION QTY.UNIT PRICE PRICE
1.
2019 Vermeer Directional Boring
Machine 1 Ea.$384,761.00 $384,761.00
Total $384,761.00
Vermeer Texas-Louisiana
Corpus Christi, Texas
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM:Bill Mahaffey, Director of Gas Operations
BillM@cctexas.com
(361) 826-1801
Kim Baker, Director of Contracts and Procurement
KimB2@cctexas.com
(361) 826-3169
CAPTION:
Motion authorizing a lease-purchase with EKA Government Sales Experts to purchase
two trenchers; a Ditch Witch RT45A compact trencher and a Ditch Witch RT850T4 heavy
duty trencher, in an amount not to exceed $200,573.05, effective upon issuance of a letter
of acceptance, with first-year funding in the amount of $39,914.64 available in the Gas
Fund.
SUMMARY:
This motion authorizes a lease-purchase, from EKA Government Sales Experts, for the
purchase of two trenchers for Gas Operations in the amount of $179,728.36, plus
$20,844.69 in interest for a total amount not to exceed $200,573.05. One trencher is a
Witch RT45A compact trencher at a unit price of $60,641.86. The other trencher is a Ditch
Witch RT850T4 heavy duty trencher unit price is $119,086.50. The equipment is
necessary to install gas mains in new developments throughout the City. These two new
trenchers are replacing units that are 9 years old and have exceeded the service life of 8
years.
BACKGROUND AND FINDINGS:
Gas Operations has an operational need for two trenchers; a Ditch Witch RT45A compact
trencher and a Ditch Witch RT850T4 heavy duty trencher to replace aging equipment that
incur high maintenance cost with reoccurring breakdown. The trenchers are used to
install gas mains in new developments throughout the City. Having this type of equipment
in-house allows for a more efficient and timely response by staff with serving and meeting
Lease Purchase of Two Trenchers for Gas Operations
AGENDA MEMORANDUM
Action item for the City Council Meeting of August 27, 2019
the needs of the City’s natural gas customers. In addition, equipment may be readily
available to be utilized by other departments when needed.
This procurement is through the BuyBoard Cooperative. Contracts awarded through the
BuyBoard Cooperative have been competitively procured in compliance with Texas Local
and State procurement requirements.
ALTERNATIVES:
The equipment can be rented as needed. However, the cost may not be cost effective
long-term, and the equipment may not be readily available at the time required causing
delays with the installation of gas mains in new developments throughout the city.
FISCAL IMPACT:
Financing for the lease-purchase of these two trenchers is based on a sixty-month term
with an estimated interest rate of 4.20% for an annual estimated payment of $39,914.64.
The total estimated cost over the five-year period, including principal of $179,728.36 and
interest of $20,844.69 is $200,573.05. 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 amount not to exceed.
Total Lease Purchase Price:$179,728.36
Total estimated allowable interest for Lease:$ 20,844.69
Grand Total:$ 200,573.05
Funding Detail:
Fund:4130 Gas Fund
Organization/Activity:34130 Gas Construction
Mission Element:022 Manage the Gas Distribution System
Project # (CIP Only): N/A
Account:530190
RECOMMENDATION:
Staff recommends approval of this motion authorizing the lease-purchase with EKA
Government Sales Experts for the purchase of two trenchers as presented.
LIST OF SUPPORTING DOCUMENTS:
Price Sheet
City of Corpus Christi
Contracts and Procurement
Senior Buyer: Cynthia Perez
Price Sheet
Lease Purchase of Two Trenchers for the
Gas Operations
BUYBOARD Contract #515-16
UNIT EXTENDED
ITEM DESCRIPTION QTY.UNIT PRICE PRICE
1.
Ditch Witch RT45A Compact
Trencher 1 Ea.$60,641.86 $60,641.86
2.
Ditch Witch RT80T4 Heavy Duty
Trencher 1 Ea.$119,086.50 $119,086.50
Total $179,728.36
EKA
Grayson, Georgia
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM:Kim Baker, Director of Contracts and Procurement
KimB2@cctexas.com
(361) 826-3169
CAPTION:
Motion authorizing a three-year supply agreement with Champion Industrial Sales, LLC
for the purchase of welding equipment and supplies, for a total amount not exceed
$100,739.94, effective upon issuance of a notice to proceed, with first-year funding in the
amount of $33,579.80 through the Stores Fund.
SUMMARY:
This motion authorizes a contract with Champion Industrial Sales, LLC to provide welding
equipment and supplies stocked by the City Warehouse and utilized by City departments
for a total amount not to exceed $100,739.94. These services are necessary to have
equipment and supplies readily available as needed for in-house welding repairs and pre-
fabrications.
BACKGROUND AND FINDINGS:
The City Warehouse stocks welding equipment and supplies so they can be readily
available as needed for in-house welding repairs and pre-fabrications by Water Utilities,
Gas Operations, Parks and Recreation and Asset Management.
The Contracts and Procurement Department conducted a competitive Request for Bid
process and received two responsive, responsible bids. Staff recommends award to
Champion Industrial Sales, LLC.
Welding Equipment and Supplies
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27,2019
ALTERNATIVES:
An alternative to accepting this low bid would be reject all bids and not secure a long-
term supply agreement. However, the individual departments would have to purchase
the welding equipment and supplies on an as needed basis, which would not be as
productive. In addition, a long-term agreement allows for a better economy of scale.
FISCAL IMPACT:
The financial impact is $2,798.33 for the remainder of this fiscal year, with the remaining
cost of $97,941.61 budgeted in future years through the annual budget process.
Funding Detail:
Fund: 5010 Stores Fund
Organization/Activity: 40000 Warehouse Stores
Mission Element: 185 Centralized Purchasing System
Project # (CIP Only): N/A
Account: 520210 Cost of Goods Sold
RECOMMENDATION:
Staff recommends approval of this motion authorizing a three-year supply agreement
with Champion Industrial Sales, LLC for the purchase of welding equipment and
supplies as presented.
LIST OF SUPPORTING DOCUMENTS:
Bid Tabulation
Supply Agreement
CITY OF CORPUS CHRISTI BID TABULATION
CONTRACTS AND PROCUREMENT RFB 2182 - WELDING EQUIPMENT AND SUPPLIES
BUYER: CINDY RAMOS
Item City
Stock #Description UNIT 3 YR
QTY Unit Price Total Price Unit Price Total Price
1 2837
Steel Electrode 1/8" Rod E7018-
#50 447056 EA 39 2.20$ 85.80$ 2.34$ 91.26$
2 2838 Brazing Flux 1 lb PET #1 BLUE EA 15 7.30$ 109.50$ 12.95$ 194.25$
3 2839 Leather Sleeves SL-5200 EA 30 22.00$ 660.00$ 19.85$ 595.50$
4 2840
Welding Gloves Hvy Grain Elk REV-
750L EA 36 21.25$ 765.00$ 15.25$ 549.00$
5 2841 Welder Cap Pleated Elastic 2000E EA 216 7.74$ 1,671.84$ 5.25$ 1,134.00$
6 2842
Goggle Weld Round #5 JKSN 932-
44 EA 72 3.65$ 262.80$ 6.15$ 442.80$
7 2843 Goggle Weld, Rec #5 Lens WS-80 EA 45 5.96$ 268.20$ 7.90$ 355.50$
8 2844
Lens 50mm Round #5 Shade 932-
205 #5 EA 45 1.90$ 85.50$ 2.85$ 128.25$
9 2845 Lens 50mm Round Clear CR-39 EA 75 1.25$ 93.75$ 0.39$ 29.25$
10 2846
Hammer Chipping Wood Hdle
2846 EA 165 10.96$ 1,808.40$ 10.97$ 1,810.05$
11 2847
Hammer Chipping Steel Hdle
ATLAS S-20 EA 150 5.50$ 825.00$ 6.98$ 1,047.00$
12 2848
Helmet Welding Auto 9-13
3023293 EA 60 88.00$ 5,280.00$ 98.00$ 5,880.00$
13 2849 Headgear Welding Hood 3-C EA 45 15.95$ 717.75$ 16.88$ 759.60$
14 2850
Spring Hood Welding, FIB_MTL
9101 EA 30 3.28$ 98.40$ 3.48$ 104.40$
15 2851
Hose Twinweld 3/16"x25'
TE31625R EA 36 9.00$ 324.00$ 32.50$ 1,170.00$
16 2852 Hose Twinweld 1/4"x50' TW1425R EA 90 32.00$ 2,880.00$ 34.92$ 3,142.80$
17 2853
Lens Hood Cover Clear sp-1 932-
210 EA 360 0.38$ 136.80$ 0.32$ 115.20$
18 2854
Hood Filter Shade 5. 932-105
14571 EA 90 1.75$ 157.50$ 0.93$ 83.70$
19 2855 Hood Filter Shade 9, OKI 14562 EA 45 1.75$ 78.75$ 0.93$ 41.85$
20 2856
Auto Darkening Shade 10
ASPSEER2X4 EA 135 40.00$ 5,400.00$ 54.57$ 7,366.95$
21 2857
Lighter Triple Flint 110-4501
TFS4501 EA 135 2.96$ 399.60$ 2.25$ 303.75$
22 2858 Flint Replacement 5012X EA 150 2.79$ 418.50$ 2.66$ 399.00$
23 2859
Oxygen Regulator SR450 SR450D-
540 EA 120 98.00$ 11,760.00$ 179.25$ 21,510.00$
DELUXE TOOL AND
SUPPLY, LLC
CORPUS CHRISTI, TX CORPUS CHRISTI, TX
CHAMPION INDUSTRIAL
SALES, LLC
Item City
Stock #Description UNIT 3 YR
QTY Unit Price Total Price Unit Price Total Price
24 2860
Acetylene Regulator SR460
SR460A-540 EA 120 98.00$ 11,760.00$ 179.25$ 21,510.00$
25 2861
Welding Rod 1/8"Low Fume Brz
RCUZN-C 1/8 X 36 EA 600 6.96$ 4,176.00$ 6.65$ 3,990.00$
26 2862
Rod Bare #1 H.T Mild 1/8" RG-60
1/8 X 36 EA 600 2.80$ 1,680.00$ 1.98$ 1,188.00$
27 2863
Welding Rod Fleetweld 5p+1/8"
ED010278 EA 1500 2.80$ 4,200.00$ 3.07$ 4,605.00$
28 2864
Welding Electrode 3/16"
ED010281 EA 6 2.75$ 16.50$ 2.93$ 17.58$
29 2865
Welding Rod Fleetweld 5p+3/32"
ED010285 EA 600 2.58$ 1,548.00$ 3.29$ 1,974.00$
30 2866
Gouging Rod 1/4" 1/4" GOUGING
ROD EA 24 0.25$ 6.00$ 12.66$ 303.84$
31 2867
Welding Rod Fleetweld 5p+3/32"
ED010283 EA 600 3.02$ 1,812.00$ 3.29$ 1,974.00$
32 2868
Weld Rod Hobart E6011, 1/8"
S112244-031 EA 900 2.18$ 1,962.00$ 1.64$ 1,476.00$
33 2869
Welding Rod 3/32 6011 Hobart
S112232-031 EA 750 2.37$ 1,777.50$ 1.75$ 1,312.50$
34 2870 Soapstone Holder Anchor 400-1 EA 75 1.20$ 90.00$ 0.89$ 66.75$
35 2871 Soapstone 3/16"x1/2"x5" SSF/144 EA 450 0.10$ 43.65$ 15.80$ 7,110.00$
36 2872
Brush Wire Tip Cleaner
WYPOSTANDARD EA 150 2.95$ 442.50$ 1.88$ 282.00$
37 2873 Nozzle Welding Victor #2W EA 30 19.00$ 570.00$ 42.80$ 1,284.00$
38 2874 Tip Welding #2 Victor 2-TE EA 33 17.00$ 561.00$ 26.84$ 885.72$
39 2875 Nozzle Welding #3 Victor #3W EA 30 19.00$ 570.00$ 42.80$ 1,284.00$
40 2876 Tip Welding #3 Victor #3TE EA 54 18.00$ 972.00$ 26.84$ 1,449.36$
41 2877 Nozzle Welding #4 Victor #4W EA 6 19.00$ 114.00$ 42.80$ 256.80$
42 2878 Tip Welding #4 Victor-#4 TE EA 12 26.00$ 312.00$ 26.84$ 322.08$
43 2879 Tip Cutting Victor 0-3-101 EA 60 7.50$ 450.00$ 6.15$ 369.00$
44 2880 Tip Cutting #1 Victor 3-101 EA 30 7.50$ 225.00$ 6.15$ 184.50$
45 2881 Tip Cutting #0 Victor 1-101 EA 60 5.96$ 357.60$ 6.15$ 369.00$
46 2882 Tip Cutting #1 Victor 1-1-101 EA 75 5.96$ 447.00$ 6.15$ 461.25$
47 2883
Handle Torch Victor 315 0387-
0008 EA 90 122.77$ 11,049.30$ 184.00$ 16,560.00$
48 2884
Cutting Attachment 90 Deg
CA2460 0381-0816 EA 60 147.32$ 8,839.20$ 189.00$ 11,340.00$
49 2885
Cutting Attachment 75 Deg
CA2461 0381-0817 EA 60 190.50$ 11,430.00$ 189.00$ 11,340.00$
50 2886 Pipe Wrap Around 4"x60" 2886 EA 60 12.96$ 777.60$ 18.86$ 1,131.60$
51 2887
Solder 40/60 Acid Core
10037/40A61 EA 9 22.00$ 198.00$ 28.75$ 258.75$
52 2888
Solder 40/60 Rosin Core
12237/40R61 EA 3 22.00$ 66.00$ 21.25$ 63.75$
100,739.94$ 140,623.59$ Grand Total
Supply Agreement Standard Form Page 1 of 7
Approved as to Legal Form July 11, 2019
SUPPLY AGREEMENT NO. 2182
Welding Equipment and Supplies
THIS Welding Equipment and Supplies Supply Agreement ("Agreement") is entered
into by and between the City of Corpus Christi, a Texas home-rule municipal
corporation (“City”) and Champion Industrial Sales, LLC (“Contractor"), effective upon
execution by the City Manager or the City Manager’s designee (“City Manager”).
WHEREAS, Contractor has bid to provide Welding Equipment and Supplies in
response to Request for Bid No. 2182 (“RFB”), which RFB includes the required scope of
work and all specifications and which RFB and the Contractor’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 Contractor agree as follows:
1.Scope. Contractor will provide Welding Equipment and Supplies 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 three years. The parties may mutually extend the term
of this Agreement for up to zero additional zero-year periods (“Option Period(s)”),
provided, the parties do so by written amendment prior to the expiration of the
original term or the then-current Option Period. The City’s extension authorization
must be executed by the City Manager or designee.
3.Compensation and Payment. This Agreement is for an amount not to exceed
$100,739.94, 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. Contractor shall invoice no more
frequently than once per month. 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. Any amount not expended during the initial term or any option period
may, at the City’s discretion, be allocated for use in the next option period.
Invoices will be mailed to the following address with a copy provided to the
Contract Administrator:
Supply Agreement Standard Form Page 2 of 7
Approved as to Legal Form July 11, 2019
City of Corpus Christi
Attn: Accounts Payable
P.O. Box 9277
Corpus Christi, Texas 78469-9277
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: Robert Presnell
Department: Contracts and Procurement
Phone: 361-826-1750
Email: robertpr@cctexas.com
5.Insurance. 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.
6.Purchase Release Order. For multiple-release purchases of products to be
provided by the Contractor 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 Contractor a purchase
release order signed by an authorized agent of the department or divisi on. The
purchase release order must refer to this Agreement, and products will remain with
the Contractor until such time as the products are delivered and accepted by
the City.
7.Inspection and Acceptance. City may inspect all products supplied before
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 Contractor, 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 Contractor within 30 days of receipt of City’s invoice.
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8. Warranty.
(A) 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.
(B) 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 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 products 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.
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
unless the subcontractors were named in the bid or in an attachment to this
Agreement. 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.
Supply Agreement Standard Form Page 4 of 7
Approved as to Legal Form July 11, 2019
13.Amendments. This Agreement may be amended or modified only in writing
executed by authorized representatives of both parties.
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 applicable 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: Robert Presnell
Title: Stores Supervisor
Address: 5352 Ayers, Bldg 6, Corpus Christi, TX 78415
Phone: 361-826-1750
Fax: 361-826-1690
IF TO CONTRACTOR:
Champion Industrial Sales, LLC
Attn: Don A. Bryan
Title: Sales
Address: 6809 Leopard St., Corpus Christi, TX 78409
Phone: 361-299-9353
Fax: 361-299-0088
17.CONTRACTOR SHALL FULLY 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
WHATEVER NATURE, CHARACTER, OR DESCRIPTION ON ACCOUNT OF
PERSONAL INJURIES, 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 A BREACH OF THIS AGREEMENT OR THE PERFORMANCE OF THIS
Supply Agreement Standard Form Page 5 of 7
Approved as to Legal Form July 11, 2019
AGREEMENT BY THE CONTRACTOR OR RESULTS FROM THE NEGLIGENT
ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS
EMPLOYEES OR AGENTS. 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 OR RESULTING 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
comply with any of the terms 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 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.Owner’s Manual and Preventative Maintenance. Contractor agrees to provide a
copy of the owner’s manual and/or preventative maintenance guidelines or
instructions if available for any equipment purchased by the City pursuant to this
Agreement. Contractor must provide such documentation upon delivery of such
equipment and prior to receipt of the final payment by the City.
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
Supply Agreement Standard Form Page 6 of 7
Approved as to Legal Form July 11, 2019
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 (excluding attachments and exhibits);
B.its attachments;
C.the bid solicitation document including any addenda (Exhibit 1); then,
D.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 if required
by said statute.
24.Governing Law. Contractor agrees to comply with all federal, Texas, and City laws
in the performance of this Agreement. 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.
(SIGNATURE PAGE FOLLOWS)
CONTRACTOR
Signature: �c //. 4 �
Printed Name: :D a A A ' 'l3 ( y tL,n\ ITitle: -6' � le--�
Date: 7 /i-"2.. 01 I 7
CITY OF CORPUS CHRISTI
Kim Baker Director of Contracts and Procurement
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. 2182
Exhibit 2: Contractor's Bid Response
Supply Agreement Standard Form Approved as to Legal Form July 11, 2019 Page 7 of 7
Page 1 of 1
ATTACHMENT A: SCOPE OF WORK
1. General Requirements/Background Information
The City uses and stocks welding equipment and supplies at the City Warehouse for
use by various departments.
2. Scope of Work
A. The Contractor shall provide welding equipment and supplies as outlined on
Bid/Pricing Schedule.
B. The Contractor shall cross reference the City’s stock number listed on the
Bid/Pricing schedule. The City agrees not to change the stock numbers assigned
to each item for the duration of the contract.
3. Contractor Quality Control and Superintendence
All welding equipment and supplies will be defect free, properly packed and
shipped to ensure a safe delivery.
4. Special Instructions
A. Ordering and Delivery
1. City will place an order on as needed basis.
2. Supplier shall ship the materials within 2 weeks of received order to the City
Warehouse, located at 5352 Ayers St. Building 6, Corpus Christi, Texas 78415.
3. All contract prices are F.O.B. destination, inside delivery to the City of Corpus
Christi Facility, freight prepaid.
4. Supplier must send Technical data sheet along with the delivery of the material.
City will not accept any products that do not conform to the specifications.
5. If any items found defective, unusable or inoperable to the condition, Supplier
shall arrange return shipment or shipping charge will be reimbursed from the
invoice.
6. Contractor understands and agrees that the City may, at its discretion, cancel
any backorders due to the Contractor’s inability to deliver the product within
the set time frame.
7. Cancellations shall be in writing and sent to Contractor by email, fax or mail.
8. No restocking fee or payment of any kind shall be owed for orders cancelled
due to Contractor’s inability to meet the deadline delivery date.
B. Defective Goods
Contractor shall pay for return shipment on any products that arrive in a defective,
unusable or inoperable condition. Contractor must arrange for the return shipment
of damaged products.
ATTACHMENT B: BID/PRICING SCHEDULE
Initial to approve correction ______ $100,739.94
_________________7/v°l;f r,
1-.L.-1 L- -----· -- ------�
Page 1of 1
RFQ Revised 1.3.2018
ATTACHMENT C: INSURANCE REQUIREMENT
INSURANCE REQUIREMENTS: No insurance requirements necessary for
this Supply Agreement; Section 5. Insurance: Bonds. (A) is null for this
Supply Agreement.
BOND REQUIREMENTS: No bond requirements necessary for this Supply
Agreement; Section 5. Insurance: Bonds. (B) is null for this Supply
Agreement.
Page 1of 1
RFQ Revised 1.3.2018
ATTACHMENT D: WARRANTY REQUIREMENTS
The Supplier warrants that all products supplied under this Agreement are new,
quality items that are free from defects when accepted by the City.
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM:Alma Casas, Interim Director of Financial Services
AlmaC@cctexas.com
(361) 826-3610
Kim Baker, Director of Contracts and Procurement
KimB2@cctexas.com
361-826-3169
CAPTION:
Motion authorizing a two-year service agreement with Patterson Capital Management,
L.P., dba Patterson & Associates, for investment advisor services in an amount not to
exceed $60,000.00, with two additional two-year renewal options with escalation cost for
a potential total amount not to exceed $184,000.00, effective upon issuance of a notice
to proceed, with funding available in the General Fund.
SUMMARY:
This motion authorizes a contract with Patterson Capital Management, L.P., dba
Patterson & Associates to provide investment consulting services for an amount not to
exceed $60,000.00. These services are necessary to assist City Investment Officers, in
the Finance Department, with investment decisions.
BACKGROUND AND FINDINGS:
At the February 14, 2018 City of Corpus Christi Investment Committee meeting, the
Investment Committee recommended that City staff hire an investment consultant. The
Investment Committee is made up of the City Manager, three Assistant City Managers,
City Attorney, Director of Finance and the Director of Management and Budget. Patterson
& Associates was hired as an investment consultant.
During the past year, Patterson & Associates has provided training to City Investment
Officers as required by the Public Funds Investment Act, increased interest earnings on
Investment Advisor Services
AGENDA MEMORANDUM
Action Item for the City Council Meeting of August 27, 2019
investments, and assisted in the revision of the City of Corpus Christi Investment Policy
and Investment Strategies as well as six City associated investment policies and
investment strategies. The City of Corpus Christi’s Investment Policy and Investment
Strategies was certified by the Government Treasurers’ Organization of Texas earlier this
year for the first time.
The City does not have the resources to view current market activity, so, in the past, our
brokers were the only ones providing the City with investment options. Patterson &
Associates has access to the Bloomberg financial system that provides them with access
to market availability and yield for investments. Because of the knowledge they have
about the market activity, they are able to negotiate for the best price of a security.
Patterson & Associates provides investment options available to the City’s Investment
Officers. The City’s Investment Officers will determine if they want to act on the
investment and then contact the City approved brokers to transact the purchase of the
security. Additionally, Patterson & Associates will assist with the depository contract
solicitation and review, assist in the development of treasury policies and procedures,
and present cash handling training.
Patterson & Associates is a HUB certified, SEC registered investment advisory firm that
provides independent and objective and portfolio management advice for public entities
since 1994. Linda Patterson is president of Patterson & Associates and was previously
the City Treasurer of Fort Worth and Deputy State Treasurer for Texas. She draws on
her knowledge from these experiences in public finance and her experience working with
clients on investment portfolios, policies, and depository contracts.
Before the current investment advisor Contract with Patterson & Associates expired, the
Contracts and Procurement Department conducted a competitive Request for Proposal
(RFP) process and received four proposals. All four proposals were screened for the
minimum requirements on a pass/fail basis, and all four firms passed. The technical
proposals were scored based on the published evaluation criteria, and after review of the
technical scores, the three firms who ranked the highest were then interviewed and
scored by the evaluation committee. The evaluation committee was comprised of staff
from Finance, Budget and Street Operations. After review of the total technical and
interview scores, the sealed pricing was opened for the three firms. One proposer
submitted a disqualifying pricing sheet; therefore, was deemed non-responsible. Of the
two remaining proposers, the proposer with the lowest price received 35 points, the other
responsible proposer received a proportional share of the points based on the proration
of their price to the lowest price provided. Patterson & Associates ranked the highest
based on their overall score of 97 out of 100. The Contracts and Procurement Department
recommends award to Patterson & Associates.
ALTERNATIVES:
City’s Brokers can provide investment options; however, this would not meet the Finance
Department’s goal of achieving the best investment for the City. Patterson & Associates
has access to the Bloomberg financial system that provides them with access to market
availability and yield for investments. Because of the knowledge they have about the
market activity, they are able to negotiate for the best price of a security.
FISCAL IMPACT:
The financial impact for the Finance Department is an amount not to exceed $60,000.00
for the initial two-year service agreement, with options to extend for up to two additional
two-year periods for an amount not to exceed 60,000.00 for the first option term and
$64,000.00 for the second option term.
Funding Detail:
Department:Finance and Business Analysis
Fund: 1020 – General Fund
Organization/Activity: 10830 – Cash Management
Mission Element: 184 – Treasury for Debt & Cash Management
Project # (CIP Only): N/A
Account: 530000 – Professional Services
RECOMMENDATION:
Staff recommends approval of this motion authorizing a two-year service agreement
with Patterson Capital Management, L.P., dba Patterson & Associates for investment
advisor services as presented.
LIST OF SUPPORTING DOCUMENTS:
Evaluation Matrix
Service Agreement
SERVICE AGREEMENT NO. 2126
Investment Advisor Services
THIS Investment Advisor Services Agreement ("Agreement") is entered into by and
between the City of Corpus Christi, a Texas home-rule municipal corporation ("City")
and Patterson Capital Management, L.P., dba Patterson & Associates
("Contractor"), effective upon execution by the City Manager or the City
Manager's designee ("City Manager").
WHEREAS, Contractor has bid to provide Investment Advisor Services in response
to Request for Bid/Proposal No. 2126 ("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 Investment Advisor Services ("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 two years, with performance commencing upon the
date of issuance of a notice to proceed from the Contract Administrator or the
Contracts and Procurement Department. The parties may mutually extend the
term of this Agreement for up to two additional two-year periods ("Option
Period(s)"), provided, the parties do so by written amendment prior to the
expiration of the original term or the then-current Option Period. The City's
extension authorization must be executed by the City Manager or designee.
3.Compensation and Payment. This Agreement is for an amount not to exceed
$60,000, 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. Contractor shall invoice no more
frequently than once per month. 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. Any amount not expended during the initial term or any option period
may, at the City's discretion, be allocated for use in the next option period.
Invoices will be mailed to the following address with a copy provided to the
Contract Administrator:
Service Agreement Standard Form Approved as to Legal Form July 11, 2019 Page 1 of 7
12.Subcontractors. Contractor may use subcontractors in connection with the workperformed under this Agreement. When using subcontractors, however, theContractor must obtain prior written approval from the Contract Administratorunless the subcontractors were named in the bid or proposal or in an Attachmentto this Agreement, as applicable. In using subcontractors, the Contractor isresponsible for all their acts and omissions to the same extent as if thesubcontractor and its employees were employees of the Contractor. Allrequirements set forth as part of this Agreement, including the necessity ofproviding a COi in advance to the City, are applicable to all subcontractors andtheir employees to the same extent as if the Contractor and its employees hadperformed the work. The City may, at the City's sole discretion, choose not toaccept Services performed by a subcontractor that was not approved inaccordance with this paragraph.
13.Amendments. This Agreement may be amended or modified only in writingexecuted by authorized representatives of both parties.
14.Waiver. No waiver by either party of any breach of any term or condition of thisAgreement waives any subsequent breach of the same.
15.Taxes. The Contractor covenants to pay payroll taxes, Medicare taxes, FICAtaxes, unemployment taxes and all other applicable taxes. Upon request, the CityManager shall be provided proof of payment of these taxes within 15 days of suchrequest.
16.Notice. Any notice required under this Agreement must be given by fax, handdelivery, or certified mail, postage prepaid, and is deemed received on the dayfaxed 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: Judy Ann Villalon City Treasurer Address: 1201 Leopard St. Corpus Christi, TX 78401 Phone: 361-826-3651 Fax: 361-880-3601
IF TO CONTRACTOR: Patterson Capital Management, L.P., dba Patterson & Associates Attn: Linda Patterson President Address: Barton Oaks Plaza II, 901 S. Mopac, Suite 195, Austin TX, 787 46 Phone: 512-320-5042 Fax: 51 2-320-504 1
Service Agreement Standard Form Approved as to Legal Form July 11, 2019 Page 4 of 7
RFP No. 2126 - Investment Advisor Services
Summary Evaluation Matrix
Proposal Evaluation Patterson Capital
Management, LP Public Trust Advisors, LLC TCG Advisors, LP Valley View Consulting, LLC
Minimum Qualifications
SEC Investment Adviser Representative Public Disclosure
Report Pass Pass Pass Pass
Required five years in business as an SEC Investment
Advisor Pass Pass Pass Pass
Three current investment advisor clients that are Texas
governmental entities with references Pass Pass Pass Pass
No outstanding lawsuits during last 5 years or current
litigation with the City during last 5 years Pass Pass Pass Pass
No outstanding regulatory issues last 5 years Pass Pass Pass Pass
References Provided for firm Pass Pass Pass Pass
Technical Proposal
Technical Proposal (35 points)33 27 23 28
Firms' Experience (20 points)
Team Experience (8 points)
Understanding of Project Scope (7 points)
Interview
Interview (30 points)29 24 0 26
Firms' Experience (15 points)
Team Identification (8 points)
Understanding of Project Scope (7 points)
Price
Price (35 points)35 0 0 11
Total 97 51 23 64
Page 1 of 1
AGENDA MEMORANDUM
First Public Hearing for the City Council Meeting of August 27, 2019
Second Public Hearing for the City Council Meeting of September 6, 2019
______________________________________________________________________
DATE:August 9, 2019
TO:Peter Zanoni, City Manager
THRU:Constance P. Sanchez, Chief Financial Officer
FROM:Alma Casas, Interim Director of Financial Services
AlmaC@cctexas.com
(361) 826-3610
CAPTION:
First Public Hearing on Fiscal Year 2020 Ad Valorem Tax Rate
SUMMARY:
The State Property Tax Code requires that two public hearings be held when a taxing
unit proposes a tax rate that exceeds either the rollback rate or the effective tax rate,
whichever is lower.
BACKGROUND AND FINDINGS:
The City of Corpus Christi is proposing a tax rate of $0.646264 per $100 valuation for
Fiscal Year (FY) 2019-2020. This tax rate includes an increase of two cents from the
prior year’s property tax rate to be used for residential streets as approved by the
citizens on November 8, 2016. This is the second of three two-cent increases noted in
the “2+2+2” charter amendment approved by the voters.
Since this rate exceeds the effective tax rate of $0.606528 per $100 valuation, the
Property Tax Code requires that the governing body schedule two public hearings on
the proposal. The first public hearing will be held on Tuesday, August 27, 2019, during
the regular City Council meeting beginning at 11:30 am, and the second public hearing
will be held on Friday, September 6, 2019 at a special City Council meeting beginning at
9:00 am. The vote for the final adoption of the tax rate will be held at the September 17,
2019 City Council meeting.
First Public Hearing on Fiscal Year 2020 Ad Valorem Tax Rate
ALTERNATIVES:
The public hearings are required to be in compliance with Truth-in-Taxation as it relates
to the adoption of the property tax rate.
FISCAL MPACT:
Adoption of the FY 2020 ad valorem tax rate is budgeted to generate $130,194,718 of
property tax revenue. Of this amount, $77,924,963 will be recorded in the General
Fund; $44,211,456 in the Debt Service Fund; and $8,058,299 in the Residential Street
Fund.
RECOMMENDATION:
Staff recommends approval of the ad valorem tax rate of $0.646264 per $100 valuation
on September 17, 2019.
LIST OF SUPPORTING DOCUMENTS:
None
DATE:July 30, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, FAICP, Director
Development Services Department
NinaM@cctexas.com
(361) 826-3276
CAPTION:
Zoning Case No. 0719-01 Corpus Christi Limousines Unlimited, Inc. Ordinance amending Zoning
Ordinance 031465 on a property at or near 4001 Leopard Street by adding a 12- month time
extension to the special permit time initially approved.
SUMMARY:
The purpose of the time extension request is to extend the time limit of the Special Permit for an
additional 12 months to have enough time for the construction and installation of a crematorium
approved and adopted in 2018.
BACKGROUND AND FINDINGS:
The purpose of the time extension request is to extend the time limit of the Special Permit for an
additional 12 months to have enough time for the construction and installation of a crematorium
approved and adopted in 2018. The ordinance authorizing the special permit became effective on
July 2, 2018. The special permit expired on July 2, 2019. The applicant is requesting an additional
12 months to complete renovation to the existing building to add the crematorium.
Conformity to City Policy
The subject property is located within the boundaries of the Westside Area Development Plan
and is planned for commercial uses. The proposed time extension of the CG-2/SP for a
crematorium use is consistent with the Future Land Use.
Public Input Process
Number of Notices Mailed
14 within 200-foot notification area
5 outside notification area
As of August 27, 2019:
In Favor In Opposition
Special Permit Time Extension for a crematorium at or near 4001 Leopard Street.
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 27, 2019
Second Reading Ordinance for the City Council Meeting September 6, 2019
0 inside notification area
0 outside notification area
0 inside notification area
0 outside notification area
Totaling 0.00% of the land within the 200-foot notification area in opposition.
Commission Recommendation
Planning Commission recommended approval of the special permit time extension on July 10,
2019.
ALTERNATIVES:
Deny the time extension request for the special permit. Denial of the time extension would not
allow the use of a crematorium.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
RECOMMENDATION:
Staff recommends approval of the special permit time extension.
Planning Commission recommended approval of the special permit time extension for a period
of 12 months on July 10, 2019 with the following vote count:
Vote Count:
For: 5
Opposed: 0
Absent: 3
Abstained:0
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Presentation - Aerial Map
Planning Commission Final Report
Zoning Case No. 0719-01 Corpus Christi’s Limousines Unlimited, Inc: Ordinance amending
Zoning Ordinance 031465 on a property at or near 4001 Leopard Street by adding a 12-
month time extension to the special permit time initially approved.
WHEREAS, Corpus Christi’s Limousines Unlimited, Inc. requested, prior to the
initial special permit expiration date provided by Zoning Ordinance 031465, as shown in
Exhibit “A” a 12-month extension of the 12-month special permit time limit initially
approved, therein requesting a total time limit of 24 months;
WHEREAS, the Planning Commission has forwarded to the City Council its final
report and recommendation regarding the application of Corpus Christi’s Limousines
Unlimited, Inc (Owner”), for an amendment to the special permit time limit provided in
Zoning Ordinance 031465;
WHEREAS, with proper notice to the public, public hearings were held on
Wednesday, July 10, 2019, during a meeting of the Planning Commission, and on
Tuesday, August 27, 2019, 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. That Zoning Ordinance 031465 is amended by adding a 12-month time
extension to the 12-month special permit time limit initially approved, thus extending the
total special permit time limit to 24 months.
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.
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That the foregoing ordinance was read for the first time and passed to its second reading
on this the _____ day of ___________, 2019, by the following vote:
Joe McComb _____________Ben Molina ____________
Rudy Garza _____________Everett Roy ____________
Paulette Guajardo _____________Lucy Rubio ____________
Michael Hunter _____________Greg Smith ____________
Debbie Lindsey-Opel _____________
That the foregoing ordinance was read for the second time and passed finally on this
the _______ day of _______________, 2019, by the following vote:
Joe McComb _____________Ben Molina ____________
Rudy Garza _____________Everett Roy ____________
Paulette Guajardo _____________Lucy Rubio ____________
Michael Hunter _____________Greg Smith ____________
Debbie Lindsey-Opel _____________
PASSED AND APPROVED on this the _______ day of _______________, 2019.
ATTEST:
________________________________ _________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Exhibit A
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Case No.0418-02 Corpus Christi 's Limousine's
Unlimited, Inc.:Ordinance rezoning property at or near
4001 Leopard Street from "CG-2"General Commercial
District to the "CG-2/SP"General Commercial District with
a Special Permit
WHEREAS, the Planning Commission has forwarded to the City
Council its final report and recommendation regarding the application of
Corpus Christi's Limousine's Unlimited, 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, a public hearing was held
on Wednesday, May 2, 2018, during a meeting of the Planning Commission.
The Planning Commission recommended approval of the change of zoning
from the "CG-2" General Commercial District to the "CG-2/SP" General
Commercial District with a Special Permit and on Tuesday, June 19, 2018,
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 Corpus Christi's Limousine's
Unlimited, Inc.("Owner''), the Unified Development Code ("UDC") of the City
of Corpus Christi, Texas ("City"), is amended by changing the zoning on a
property describedas Lots2 thru 5,Villa Gardens Annex, locatedon the south
side of Leopard Street, west of Villa Drive,and east of Van Cleve Drive (the
"Property"), from the "CG-2" General Commercial District to the "CG-2/SP"
General Commercial District with a Special Permit(Zoning Map No. 049045),
as shown in Exhibits "A" and "B". Exhibit A, which is a map of the property,
and Exhibit B, which is a site plan, are attached to and incorporated in this
ordinance by reference as iffully set out herein in their entireties.
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
.r:ight in the base zoning district is "Crematorium" as defined by
the Unified Development Code (UDC).
2.Hours of Operation: The operation of the crematorium is limited to the
hours from 7:00 AM to 10:00 PM. Operation of the crematorium outside
of these hours is prohibited.
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3.Other Requirements: The Special Permit conditions listed herein do not
preclude compliance with other applicable UDC, Building, and Fire Code
Requirements.
4. 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 6. Publication shall be made in the City's official publication as required by the31 465
031465 INDEXED
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STAFF REPORT
Case No.0719-01
INFOR No. 18ZN1008
Planning Commission Hearing Date: July 10, 2019
Applicant& Legal DescriptionOwner: Corpus Christi’s Limousines Unlimited, Inc.
Applicant:Saxet Funeral Home
Location Address:4001 Leopard Street
Legal Description:Villa Gardens Annex, Lots 2 thru 5, located on the south
side of Leopard Street, west of Villa Drive, and east of Van Cleve Drive.Zoning RequestRequest: Special Permit Time Extension of 12 months
Area: 0.51 acres
Purpose of Request: To have enough time for the construction and
installation of the crematorium approved and adopted in 2018.Existing Zoning and Land UsesExisting Zoning District Existing Land Use Future Land Use
Site “CG-2” General
Commercial/SP Commercial Commercial
North “CG-2” General
Commercial Commercial Commercial
South “RS-6” Single-Family 6
Public/Semi-Public
and Low Density
Residential
Government and
Medium Density
Residential
East “CG-2” General
Commercial
Public/Semi-Public
and Vacant
Government and
High Density
Residential
West “CG-2” General
Commercial Commercial Commercial
ADP, Map & ViolationsArea Development Plan: The subject property is located within the boundaries
of the Westside Area Development Plan and is planned for commercial uses.
The proposed time extension of the CG-2/SP for a crematorium use is
consistent with the Future Land Use.
Map No.: 049045
Zoning Violations: None
TransportationTransportation and Circulation: The subject property has approximately 136
feet of street frontage along Leopard Street which is designated as an “A1”
Minor Arterial Street, approximately 223 feet along Villa Street which is
designated as a Local/Residential Street, and approximately 105 feet along
Leigh Drive which is also designated as a Local/Residential Street. The site is
serviced by Route 27 of the Corpus Christi Regional Transit Authority. The
closest bus stops are 450 to the west and 300 feet to the east in front of Oak
Park Elementary School.
Staff Report
Page 2
Street R.O.W.Street
Urban
Transportation
Plan Type
Proposed
Section
Existing
Section
Traffic
Volume
Leopard
Street
“A1” Minor Arterial
Street
95’ ROW
64’ paved
105’ ROW
64’ paved
10,537 ADT
(2014)
Villa Street Local/Residential 50’ ROW
28’ paved
60’ ROW
34’ paved
N/A
Leigh Drive Local/Residential 50’ ROW
28’ paved
50’ ROW
30’ paved
N/A
Staff Summary:
Request: The purpose of the request is to extend the time limit of the Special Permit for
an additional 12 months.
AICUZ: The subject property is not located in one of the Navy’s Air Installation
Compatibility Use Zones (AICUZ).
Plat Status: The property is platted.
Department Comments:
The applicant is requesting a time extension for the rezoning that was approved by
City Council on June 26, 2018 through Ordinance Number 031465. It has been one
year since the approval and there has been no action on the rezoning approval.
Application for this time extension was submitted earlier in May 23, 2019. Therefore,
a time extension is needed for the rezoning approval to remain valid.
The applicant contends that due to difficulties and financial business constraints, he
has not been able to meet the time limit for his crematorium project.
The Planning Commission approved the 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/SP” General Commercial District with a Special Permit (SP)
with the following conditions
o Uses:The only use authorized by this Special Permit other than uses
permitted by right in the base zoning district is “Crematorium” as defined by
the Unified Development Code (UDC).
o Hours of Operation:The hours of operation of the crematorium shall be daily
from 7:00 AM to 10:00 PM.
o Other Requirements:The Special Permit conditions listed herein do not
preclude compliance with other applicable UDC, Building, and Fire Code
Requirements.
o 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
Staff Report
Page 3
Permit shall expire if the allowed use is discontinued for more than six
consecutive months.
Council may grant a maximum of two consecutive extensions. Thereafter, a new
application for a special permit must be filed.
Planning Commission and Staff Recommendation:
Approval of the requested Special Permit time extension for a period of 12 months.Public NotificationNumber of Notices Mailed – 14 within 200-foot notification area
5 outside notification area
As of July 30, 2019:
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:
A. Location Map (Existing Zoning & Notice Area)
B. Public Comments Received (if any)
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Report_0719-0 Corpus Christi Limousines Unlimited, Inc..docx
City Council Presentation
August 27, 2019
Zoning Case #0719-01
Corpus Christi’s Limousines Unlimited, Inc.
Special Permit Time Extension Request for an
additional 12 months for a property at 4001 Leopard Street.
2
Aerial Overview
Subject Property at 4001 Leopard Street
3
N
4.62 Acre
Remainder
4
Zoning Pattern
5
Staff Recommendation
Approval of the Special Permit Time
Extension Request for an
additional 12 months.
6
Public Notification
14 Notices mailed inside 200’ buffer
5 Notices mailed outside 200’ buffer
Notification Area
Opposed: 0 (0.00%)
In Favor: 0 (0.00%)
7
Special Permit Conditions
1. Uses:The only uses authorized by this Special Permit other than
uses permitted by right in the base zoning district is “Crematorium”
as defined by the Unified Development Code (UDC).
2. Hours of Operation:The hours of operation of the crematorium
shall be daily from 7:00 AM to 10:00 PM.
3. Other Requirements:The Special Permit conditions listed herein
do not preclude compliance with other applicable UDC, Building,
and Fire Code Requirements.
4. 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.
8
UDC Requirements
Buffer Yards: N/A
Setbacks: Street: 20 feet
Street Corner: 15 feet
Side: 10 feet
Parking: 1:5 seats (Funeral Home)
Landscaping, Screening, and Lighting
Standards
Uses Allowed: Retail, Offices, Vehicle
Sales, Bars, and Mini-Storage
CG-2/SP
9
Site Plan
DATE:July 30, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, FAICP, Director
Development Services Department
NinaM@cctexas.com
(361) 826-3276
CAPTION:
Case No. 0719-04 Guillermo Munoz. (District 1) Ordinance rezoning property at or near 121
Pueblo Avenuefrom the “IL” Light Industrial District to the “RM-3” Multi-Family Residential District.
SUMMARY:
The purpose of the zoning request is to allow for the construction of a new single-family home.
Both the demolition of the existing home and the construction of the new home will be built as
part of a grant from the Housing and Community Development Department’s HOME Investment
Partnership (HOME) Program.
BACKGROUND AND FINDINGS:
The subject property is 0.1574 acres in size. The applicant is proposing construction of a new
single-family home. There is an existing 576 sq. ft. single-family residential structure which will be
replaced with a 900 sq. ft. single-family residential structure on the subject property. The applicant
has sought assistance for the repairs through the Housing and Community Development
Department Development (HCD) Department HOME Program funded through the U.S.
Department of Housing and Urban Development (HUD) programs and met the eligibility
requirements. The funding cost for this HCD project will total $114,147 and will be comprised of
approximately $11,347 in the form of a grant and $102,800 in the form of a loan to the homeowner.
The “IL” Light Industrial District was zoned in 1946. To the north and east of the subject property
are single-family residences and vacant lots zoned “IL” Light Industrial District. To the south is a
vacant lot zoned “IL” Light Industrial District and further south are single-family homes and vacant
lots zoned “RM–3” Multi-Family Residential District. The single-family homes zoned “IL” are non-
conforming uses. In order to replace the single-family home at 121 Pueblo Avenue, the zoning
must permit single-family homes. The closest residential district is “RM-3” Multi Family
Residential District and is located two lots to the south of the subject property.
Rezoning a property at or near 121 Pueblo Avenue
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 27, 2019
Second Reading Ordinance for the City Council Meeting September 6, 2019
The current “IL” Light Industrial District allows for Light Industrial and Commercial uses. The
proposed “RM-3” Multi Family Residential District allows for Single-family and Multi-family uses
up to a density of 36 dwelling units per acre.
Conformity to City Policy
The subject property is located within the boundaries of the Westside Area Development Plan
and is planned for Medium Density Residential uses to the east and Light Industrial to the west of
the property. The proposed rezoning to the “RM-3” Multi Family Residential District is generally
consistent with the adopted Comprehensive Plan (Plan CC); but is not consistent with the Future
Land Use Map and warrants an amendment to the Map.
Public Input Process
Number of Notices Mailed
29 within 200-foot notification area
5 outside notification area
As of August 27, 2019:
In Favor
1 inside notification area
0 outside notification area
In Opposition
0 inside notification area
0 outside notification area
Totaling 0.4% of the land within the 200-foot notification area in favor.
Commission Recommendation
Planning Commission recommended approval the change of zoning from the “IL” Light Industrial
District to the “RM-3” Multifamily Residential District on July 27, 2019.
ALTERNATIVES:
1. Deny the zoning request which will prevent the construction of the new single-family
home.
FISCAL IMPACT:
There is no fiscal impact associated with this zoning case item.Housing and Community
Development Department funding in the amount of $114,147 is available FY2018-2019 from the
approved and budgeted HOME Program.
RECOMMENDATION:
Staff recommends approval of the zoning request.
Planning Commission recommended approval of the change of zoning from the “IL” Light
Industrial District to the “RM-3” Multifamily Residential District with following vote count.
Vote Count:
For: 5
Opposed: 0
Absent: 3
Abstained:0
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Presentation - Aerial Map
Planning Commission Final Report
Zoning Case No. 0719-04 Guillermo Munoz. Ordinance rezoning property at or near
121 Pueblo Avenue from the “IL” Light Industrial District to the “RM-3” Multi Family
Residential District.
WHEREAS, the Planning Commission has forwarded to the City Council its final
report and recommendation regarding the application of Guillermo Munoz. (“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, a public hearing was held on
Wednesday, July 10, 2019, during a meeting of the Planning Commission. The Planning
Commission recommended approval of the change of zoning from “IL” Light Industrial
District to the “RM-3” Multi Family Residential District, and on Tuesday, August 27, 2019,
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 Guillermo Munoz. (“Owner”), the Unified
Development Code (“UDC”) of the City of Corpus Christi, Texas (“City”), is amended by
changing the zoning on a property described as being 0.1574 acre tract of land, described
as Lot 6, Block 8, Meadow Park Addition to the City of Corpus Christi, Nueces County,
Texas as shown by map or plat of said addition on file with the County Clerk of Nueces
County, Texas located along the west side of Pueblo Avenue and south of Agnes Street
(the “Property”),from the “IL” Light Industrial District to the “RM-3” Multi Family Residential
District (Zoning Map No. 048043), as shown in Exhibits “A” and “B”. Exhibit A is a warranty
deed description of the Property, and Exhibit B, which is a map of the subject property,
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.
Page 2 of 6
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.
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Page 3 of 6
That the foregoing ordinance was read for the first time and passed to its second
reading on this the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this
the _____ day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Page 4 of 6
Exhibit A
Page 5 of 6
Page 6 of 6
Exhibit B
City Council Presentation
August 27, 2019
Zoning Case #0719-04
Guillermo Munoz
Rezoning for a Property at
121 Pueblo Avenue
2
Aerial Overview
Subject Property at
121 Pueblo Avenue
3
N
4.62 Acre
Remainder
Zoning Pattern
4
5
Staff Recommendation
Approval of the
“RM-3” Multifamily Residential 3 District
6
Public Notification
29 Notices mailed inside 200’ buffer
5 Notices mailed outside 200’ buffer
Notification Area
Opposed: 0 (0%)
In Favor:1 (0.4%)
7
UDC Requirements
Buffer Yards:
IL to RM-3:
Type B: 5’ & 10 pts.
Setbacks:
Street: 20 feet
Sides/Rear: 5 and10 feet
Parking:
2 per Unit
Landscaping, Screening, and
Lighting Standards
Uses Allowed: Single-family and
Multifamily Uses.
8
Utilities
Water:
6-inch ACP
Wastewater:
8-inch VCP
Gas:
2-inch Service Line
Storm Water:
On-street inlets
STAFF REPORT
Case No.0719-04
INFOR No. 19ZN1016
Planning Commission Hearing Date: July 10, 2019
Applicant& Legal DescriptionOwner: Guillermo Munoz
Applicant:Guillermo Munoz
Location Address:121 Pueblo Avenue
Legal Description:Being 0.1574 acre tract of land, described as Lot 6, Block
8, Meadow Park Addition to the City of Corpus Christi, Nueces County, Texas
as shown by map or plat of said addition on file with the County Clerk of
Nueces County, Texas located along the west side of Pueblo Avenue and
south of Agnes Street. Zoning RequestFrom: “IL” Light Industrial
To:“RM-3” Multifamily 3
Area: 0.1574 acres
Purpose of Request: To allow for the construction of a new Single-Family
Home.Existing Zoning and Land UsesExisting Zoning District
Existing
Land Use
Future
Land Use
Site “IL” Light Industrial Single Family
Residential
Medium Density
Residential
North “IL” Light Industrial Single Family
Residential
Medium Density
Residential
South “IL” Light Industrial Vacant Medium Density
Residential
East “IL” Light Industrial Single Family
Residential
Medium Density
Residential
West “IL” Light Industrial Light Industrial Light Industrial
ADP, Map & ViolationsArea Development Plan: The subject property is located within the boundaries
of the Westside Area Development Plan and is planned for Medium Density
Residential uses to the east and Light Industrial to the west of the property.
The proposed rezoning to the “RM-3” Multi Family Residential District is
generally consistent with the adopted Comprehensive Plan (Plan CC); but is
not consistent with the Future Land Use Map and warrants an amendment to
the Map.
Map No.:048043
Zoning Violations: None
Staff Report
Page 2
TransportationTransportation and Circulation: The subject property has approximately 50
feet of street frontage along Pueblo Avenue which is designated as a
local/residential street. According to the Urban Transportation Plan, “C1” Local
Collector Streets can convey a capacity between 1,000 to 3,000 Average Daily
Trips (ADT).Street R.O.W.Street
Urban
Transportation Plan
Type
Proposed
Section
Existing
Section
Traffic
Volume
Pueblo
Avenue Local/Residential 50’ ROW
28’ paved
40’ ROW
30’ paved N/A
Staff Summary:
Requested Zoning: The applicant is requesting a rezoning from the “IL” Light Industrial
District to the “RM-3” Multi Family Residential 3 District to allow for the construction of a
new home.
Development Plan: The subject property is 0.1574 acres in size. The applicant is
proposing a new home. There is an existing 576 sq. ft. single family residential structure
on the subject property. The applicant sought assistance for the repairs through the
Housing and Community Development Department HUD programs, and met the
eligibility requirements for the Demolition/Reconstruction Program. The program
consists of the demolition of the existing deteriorated residential structure and the new
construction of a single-family residential unit. The new home will be approximately 900
square feet with accessibility features and approximately 13 feet, 6 inches from the sill
plate to the highest peak on the roof in height with a front enclosed patio area.
Existing Land Uses & Zoning: The subject property is currently zoned “IL” Light
Industrial District, with a single-family home situated on the land, (Meadow Park in
annexed in 1946). To the north are single-family residences and vacant lots and zoned
“IL” Light Industrial District in conjunction with annexation prior to 1960. To the south is
a vacant lot zoned “IL” Light Industrial District and followed by “RM –3” Multi-Family
Residential District interspersed with single family homes and vacant lots. To the east
are single-family residential properties and currently zoned “IL” Light Industrial District
(Meadow Park, 1946). To the west is a vacant industrial site behind the subject property
zoned ““IL” Light Industrial District (prior to 1960).
AICUZ: The subject property is not located in one of the Navy’s Air Installation
Compatibility Use Zones (AICUZ).
Plat Status: The property is platted.
Utilities:
Water:6-inch ACP line located along Pueblo Avenue.
Wastewater:8-inch VCP line located along Pueblo Avenue.
Staff Report
Page 3
Gas:2-inch Service Line located along Pueblo Avenue.
Storm Water:Inlets along Pueblo Avenue
Plan CC & Area Development Plan Consistency: The subject property is located
within the boundaries of the Westside Area Development Plan and is planned for
medium density residential uses (up to 14 units per acre). The proposed rezoning to the
“RM-3” Multifamily 3 District is generally consistent with the adopted Comprehensive
Plan (Plan CC) but warrants an amendment to the Future Land Use Map to high density
residential use (up to 36 units per acre). The following policies should be considered:
Encourage orderly growth of new residential, commercial, and industrial areas
(Future Land Use, Zoning, and Urban Design Policy Statement 1).
Promote a balanced mix of land uses to accommodate continuous growth and
promote the proper location of land uses based on compatibility, locational
needs, and characteristics of each use (Future Land Use, Zoning, and Urban
Design Policy Statement 1).
Encourage residential infill development on vacant lots within or adjacent to
existing neighborhoods. (Future Land Use, Zoning, and Urban Design Policy
Statement 3)
Department Comments:
The proposed rezoning is inconsistent with the Future Land Use Map. However, the
proposed rezoning is generally consistent with the adopted Comprehensive Plan
(Plan CC) and warrants an amendment to the Future Land Use Map.
The proposed rezoning is also compatible with neighboring properties and with the
general character of the surrounding area. This rezoning does not have a negative
impact upon the surrounding neighborhood.
The properties along Agnes were zoned “IL” Light Industrial District with annexation.
To the south is an area of single family homes zoned “RM-3” Multifamily Residential
3 District. “RM-3” would be an appropriate zoning district, since it is compatible with
this “RM-3” zoning district to the south.
A Type B Buffer Yard (Redevelopment) will be required along the property lines
shared with light Industrial zoned properties to the sides and rear. Type B Buffer
Yards consist of 5-feet of buffer space and a 10-point requirement as defined in
Section 7.9.6.A of the Unified Development Code (UDC).
Planning Commission and Staff Recommendation:
Approval of the change of zoning from the “IL” Light Industrial District to the “RM-3”
Multifamily 3 District.
Staff Report
Page 4
Public NotificationNumber of Notices Mailed – 29 within 200-foot notification area
5 outside notification area
As of July 31, 2019:
In Favor – 1 inside notification area
– 0 outside notification area
In Opposition – 0 inside notification area
– 0 outside notification area
Totaling 0.4% of the land within the 200-foot notification area in favor.
Attachments:
A. Location Map (Existing Zoning & Notice Area)
B. Public Comments Received (if any)
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DATE:July 30, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, FAICP, Director
Development Services Department
NinaM@cctexas.com
(361) 826-3276
CAPTION:
Case No: 0719-03 Cloudcroft Land Ventures, Inc. (District 5). Ordinance rezoning property at or
near 6202 Yorktown Boulevard from the “RM-1” Multifamily District to the “CN-1” Neighborhood
Commercial District.
SUMMARY:
The purpose of the zoning request is to allow for the construction of a business center.
BACKGROUND AND FINDINGS:
The subject property is 2.780 acres in size. Projected plans are to plat the property into 2 lots and
develop the property for neighborhood business center use. The development will include one
single story multi-tenant building on each of the 2 lots. The subject property is currently a vacant
lot. The new shopping center is an infill development project along the Yorktown Boulevard
commercial corridor. The current “RM-1” Multi Family District allows Single-Family and apartment
uses up to 22 dwelling units per acre. Permitted uses in the proposed “CN-1” Neighborhood
Commercial District include retail, office, and apartment uses up to 37 dwelling units per acre.
Bars and nightclubs are not allowed in the “CN-1” Neighborhood Commercial 1 District.
Conformity to City Policy
The subject property is located within the boundaries of the Southside Area Development Plan
and is planned for Low Density Residential use. The proposed rezoning to the “CN-1”
Neighborhood Commercial District is generally consistent with the adopted Comprehensive Plan
(Plan CC) and warrants an amendment to the Future Land Use Map
Public Input Process
Number of Notices Mailed
35 within 200-foot notification area
5 outside notification area
Rezoning a portion of property at or near 6202 Yorktown Boulevard.
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 27, 2019
Second Reading Ordinance for the City Council Meeting September 6, 2019
As of August 27, 2019:
In Favor
0 inside notification area
0 outside notification area
In Opposition
2 inside notification area
0 outside notification area
Totaling 1.78% of the land within the 200-foot notification area in favor.
Commission Recommendation
Planning Commission recommended approval the change of zoning from the “RM-1” Multifamily
District to the “CN-1” Neighborhood Commercial District on July 10, 2019.
ALTERNATIVES:
1. Deny the zoning request which will prevent the construction of the commercial shopping
center.
2. Approval of an alternate zoning district such as “ON” Neighborhood Commercial District
which would allow the office use. However, the “ON” District limits the square footage of
retail and restaurant uses.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
RECOMMENDATION:
Staff recommends approval of the zoning request.
Planning Commission recommended approval of the change of zoning from the “RM-1”
Multifamily District to the “CN-1” Neighborhood Commercial District on July 10, 2019 with
following vote count.
Vote Count:
For: 5
Opposed: 0
Absent: 3
Abstained:0
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Presentation - Aerial Map
Planning Commission Final Report
Case No. 0719-03 Cloudcroft Land Ventures, Inc.: Ordinance rezoning property at
or near 6202 Yorktown Boulevard from the “RM-1” Multifamily District to the “CN-
1” Neighborhood Commercial District.
WHEREAS, the Planning Commission has forwarded to the City Council its final
report and recommendation regarding the application of Cloudcroft Land Ventures, 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, a public hearing was held on
Wednesday, July 10, 2019, during a meeting of the Planning Commission. The Planning
Commission recommended approval of the change of zoning from the “RM-1”
Multifamily District to the “CN-1” Neighborhood Commercial District and on Tuesday,
August 27, 2019, 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 Cloudcroft Land Ventures, Inc. (“Owner”), the
Unified Development Code (“UDC”) of the City of Corpus Christi, Texas (“City”), is
amended by changing the zoning on a property described as being a 2.780 acre tract of
land out of Lots 10 and 11, Section 10, Flour Bluff and Encinal Farm and Garden Tracts,
as recorded in Volume A, Pages 41 to 43 of the Map records of Nueces County, Texas,
located on the northwest corner of the intersection of Yorktown Boulevard and
Annemasse Drive (the “Property”), from the “RM-1” Multifamily District to the “CN-1”
Neighborhood Commercial District (Zoning Map No.104683), as shown in Exhibits “A”
and “B”. Exhibit A, 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.
Page 2 of 6
SECTION 6. Publication shall be made in the City’s official publication as required by
the City’s Charter.
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That the foregoing ordinance was read for the first time and passed to its second
reading on this the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this
the _____ day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Page 4 of 6
Exhibit A
Page 5 of 6
Page 6 of 6
Exhibit B
City Council Presentation
August 27, 2019
Zoning Case #0719-03
Cloudcroft Land Ventures
Rezoning for a Property at
6202 Yorktown Boulevard
2
Aerial Overview
Subject Property at
6202 Yorktown Blvd
3
N
4.62 Acre
Remainder
4
Zoning Pattern
5
Staff Recommendation
Approval of the
“CN-1” Neighborhood Commercial District
6
Public Notification
35 Notices mailed inside 200’ buffer
5 Notices mailed outside 200’ buffer
Notification Area
Opposed: 2 (1.78%)
In Favor: 0 (0.00%)
x
x
7
UDC Requirements
Buffer Yards: “RM-1” to “CN-1”
Type B: 10’ & 10 pts.
Setbacks: Street: 20 feet
Corner: 15 feet
Parking: 1:250 sq. ft. GFA
Landscaping, Screening, and Lighting
Standards
Uses Allowed: Retail, Offices, Multifamily
*Bars/Nightclubs Not Allowed in “CN-1”
STAFF REPORT
Case No.0719-03
INFOR No. 19ZN1015
Planning Commission Hearing Date: July 10, 2019
Applicant& Legal DescriptionOwner: Cloudcroft Land Ventures, Inc
Applicant:Golden Real Estate & Construction Consulting Co.
Location Address: 6202 Yorktown Boulevard
Legal Description:Being a 2.780 acre tract of land out of Lots 10 and 11,
Section 10, Flour Bluff and Encinal Farm and Garden Tracts, as recorded in
Volume A, Pages 41 to 43 of the Map records of Nueces County, Texas.Zoning RequestFrom: “RM-1” Multi-Family Residential District
To:“CN-1” Neighborhood Commercial District
Area: 2.780 acres
Purpose of Request: To allow for the construction of a business center.Existing Zoning and Land UsesExisting Zoning District
Existing Land
Use Future Land Use
Site “RM-1” Multifamily Vacant Low Density
Residential
North “RS-6” Single-Family 6 Low Density
Residential
Low Density
Residential
South “RS-6” Single-Family 6
Low Density
Residential
Low Density
Residential
East “CN-1” Neighborhood
Commercial Vacant Commercial
West “RS-6” Single-Family 6 Low Density
Residential
Low Density
Residential
ADP, Map & ViolationsArea Development Plan: The subject property is located within the boundaries
of the Southside Area Development Plan and is planned for Low Density
Residential use. The proposed rezoning to the “CN-1” Neighborhood
Commercial District is generally consistent with the adopted Comprehensive
Plan (Plan CC) and warrants an amendment to the Future Land Use Map.
Map No.: 104683
Zoning Violations: None
TransportationTransportation and Circulation: The subject property has approximately 230
feet of frontage on the east side along Annemasse Drive which is designated as
a Local/Residential Street and 493 feet of street frontage along the Yorktown
Boulevard which is designated as an “A3” Primary Arterial Street. According to
the Urban Transportation Plan, “A3” Primary Arterial Streets can convey a
capacity between 30,000 to 48,000 Average Daily Trips (ADT).
Staff Report
Page 2
Street R.O.W.Street
Urban
Transportation Plan
Type
Proposed
Section
Existing
Section
Traffic
Volume
Yorktown
Boulevard
“A3” Primary Arterial
Street
130’ ROW
79’ paved
60’ ROW
23’ paved N/A
Annemasse
Drive Local/Residential 50’ ROW
28’ paved
60’ ROW
40’ paved N/A
Staff Summary:
Requested Zoning: The applicant is requesting a rezoning from the “RM-1” Multifamily
District to the “CN-1” Neighborhood Commercial District to allow for the construction of a
neighborhood business center.
Development Plan: The subject property is 2.780 acres in size. The owner is proposing
to construct a business center. Projected plans are to plat the property into 2 lots and
develop the property for neighborhood business center use. The development will include
one single story multi-tenant building on each of the 2 lots.
Existing Land Uses & Zoning: The subject property is currently a vacant parcel zoned
“RM-1” Multifamily District. To the north are single-family homes zoned “RS-6” Single-
Family 6 District. To the south across Yorktown Boulevard are single family homes (Kings
Crossing Subdivision). To the east and across Annemasse Drive is a vacant lot zoned
CN-1 Neighborhood Commercial. To the west is a single family home.
AICUZ: The subject property is not located in one of the Navy’s Air Installation
Compatibility Use Zones (AICUZ).
Plat Status: The property is not platted.
PlanCC & Area Development Plan Consistency: The subject property is located within
the boundaries of the Southside Area Development Plan and is planned for Low Density
Residential use. The proposed rezoning to the “CN-1” Neighborhood Commercial District
is generally consistent with the adopted Comprehensive Plan (Plan CC) and warrants an
amendment to the Future Land Use Map. The following policies should be considered:
Encourage orderly growth of new residential, commercial, and industrial areas
(Future Land Use, Zoning, and Urban Design Policy Statement 1).
Promote a balanced mix of land uses to accommodate continuous growth and
promote the proper location of land uses based on compatibility, locational needs,
and characteristics of each use (Future Land Use, Zoning, and Urban Design
Policy Statement 1).
Support the separation of high-volume traffic from residential areas or other noise-
sensitive land uses (Future Land Use, Zoning, and Urban Design Policy Statement
3).
Staff Report
Page 3
Encourage the design of commercial centers in a manner that minimizes the
impacts of automobile intrusion, noise and visual blight on surrounding areas
(Future Land Use, Zoning, and Urban Design Policy Statement 3).
Promote interconnected neighborhoods with appropriate transitions between
lower-intensity and higher-intensity land uses. (Future Land Use, Zoning, and
Urban Design Policy Statement 3).
Screening fences, open space or landscaping can provide an essential buffer
between shopping and residential areas (Future Land Use, Zoning, and Urban
Design Policy Statement 3).
Encourage the design of commercial centers in a manner that minimizes the
impacts of automobile intrusion, noise and visual blight on surrounding areas.
(Future Land Use, Zoning, and Urban Design Policy Statement 3).
The "B-1" Neighborhood Commercial (“CN-1” Neighborhood Commercial) and
other commercial zoning regulations, in concert with the Comprehensive Plan
policies, should be reviewed and revised as necessary to control the size and use
of commercial centers so they remain in scale with their surrounding uses and
highway carrying capacity (Policy Statement B.4).
Department Comments:
The proposed rezoning is generally consistent with the adopted Comprehensive Plan
(Plan CC) and warrants an amendment to the Future Land Use Map.
The proposed rezoning is compatible with neighboring properties and with the general
character of the surrounding area. This rezoning does not have a negative impact
upon the surrounding neighborhood in regards to noise.
The rezoning would encourage future commercial development of the subject
property, further develop the vacant lot to the east across Annemasse Drive as a
commercial use. This would create a commercial center at the intersection of
Annemasse Drive and Yorktown Blvd.
While the “CN-1” District does not allow more intense commercial uses such as Mini-
Storage, Bars, and Night Clubs. The “CN-1” District has no restriction on the size of
restaurant uses or retail development.
Staff has concluded that the adjacent neighborhoods would be better served by the
“CN-1” Neighborhood Commercial District that fronts Yorktown Boulevard than the
RM-1 Multi-Family Residential District.
A Type B buffer yard will be required along the property lines shared with residential
zoned properties to the sides and rear. Type B Buffer Yards consist of 10-feet wide of
buffer space and a 10-point requirement as defined in Section 4.9.5. A. of the Unified
Development Code. (UDC).
Planning Commission and Staff Recommendation:
Approval of the change of zoning from the “RM-1” Multifamily District to the “CN-1”
Neighborhood Commercial District.
Staff Report
Page 4
Public NotificationNumber of Notices Mailed – 35 within 200-foot notification area
5 outside notification area
As of July 31, 2019:
In Favor – 0 inside notification area
– 0 outside notification area
In Opposition – 2 inside notification area
– 0 outside notification area
Totaling 1.78% of the land within the 200-foot notification area in opposition.
Attachments:
A. Location Map (Existing Zoning & Notice Area)
B. Public Comments Received (if any)
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DATE:July 5, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, Director, Development Services
NinaM@cctexas.com
(361) 826 - 3276
CAPTION:
Ordinance authorizing a Water Distribution Main Line Extension Construction and
Reimbursement Agreement with Esther Ybarra to extend a line to a planned residential
property located at 7541 Weber Road for a term not to exceed 12 months; appropriating
$101,950.24 from the Water Distribution Main Trust Fund to reimburse developer. (District
3)
SUMMARY:
The Ordinance authorizes a contract with Mrs. Esther Ybarra to construct 200 linear feet of an 8-
inch water distribution main line extension in the amount of $101,950.24 for a term not to exceed
12 months from the execution of the agreement. The water line is required to provide fire
protection and water service to a planned residential property located at 7541 Weber Road and
provide for future development of properties on the northside Weber Road by extending water
and fire protection capability to those properties. The property is 9.04 acres and is zoned “FR”.
BACKGROUND AND FINDINGS:
Mrs. Esther Ybarra plans to install 200 linear feet of an 8-inch water distribution main line within
city limits to service her property located at 7541 Weber Road to serve a planned residential home
that will be constructed on the property. The Unified Development Code requires connection if
the property is within one mile of water services. Mrs. Ybarra’s property has a water well on it, but
Utilities Department determined that the existing water well does not supply enough water
pressure for fire protection and the installation of a water line was required. The new water
distribution main line is required to provide adequate fire protection to the planned residential
property. The new water distribution main line will connect to an existing 16-inch water distribution
main line that runs along the south side of Weber Road. The new distribution line will be located
near the 7500 block of Weber Road, east of the Oso Creek and west of Yorktown Boulevard. The
new distribution line will be routed under Weber Road and will provide fire protection and water
service to properties on the north side of Weber Road.
Agreement and appropriating funds for Mrs. Esther Ybarra for the construction of a
Water Distribution Main Line Extension and Reimbursement Agreement
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 27, 2019
Second Reading Ordinance for the City Council Meeting September 17, 2019
The water distribution main line extension has been deemed acceptable by Utilities Department
in order to provide water and fire protection service to properties on the north side of Weber Road.
The installation of the t-head will enable the future extension of a water line along the north side
of Weber Road which would serve two undeveloped properties totaling 133 acres. This would be
a cost effective and efficient way to provide future water service, helping to incentivize the
development of said property.
The developer has requested a reimbursement agreement in accordance with UDC Section
8.5.1.C.2. Water Distribution Main Line Extensions. Distribution mains are mains of 12 inches
inside diameter, or smaller, connected to the supply mains that provide fire protection and
domestic service. The Distribution Main Trust Fund is used to reimburse developers for
constructing distribution mains and oversizing distribution mains off-site.
This project is consistent with Utilities Department water distribution and fire suppression
standards for the residential property and will support the future development of the property to
the east of the Ybarra property along the north side of Weber Road.
City Council gave direction to staff at the August 13, 2019 meeting to reexamine the trust funds
and to provide recommendations on policies that govern the priority, order, reimbursement rate
and fees charged by the trust funds. City Council directed staff return within 75 days and present
their recommendations.
ALTERNATIVES:
Based upon the current UDC language in section 8.5.1 Water Trust Fund the developer requested
reimbursement for the installation of the water distribution line that will serve the planned
residential property. If the request were to be denied and the developer had to assume the costs
associated with the installation of the water line to serve the property, the project may become
cost prohibitive. The construction of the new home maybe delayed until a distribution line that is
suitable for fire suppression standards is extended on the north side of Weber Road.
FISCAL IMPACT:
The Water Distribution Main Trust Fund has a balance of $608.273.64. Approval of this
reimbursement agreement will leave the water distribution main trust fund with an available
balance of $506,323.40. The expenditure for this project is a one-time cost and is not associated
with any other projects. The water distribution main trust fund receives monthly deposits
generated from prorata and surcharge fees charged during the platting process.
Funding Detail:
Fund:4030 Water Distribution Main Trust Fund
Organization/Activity: 21806 Water Distribution Main Trust
Mission Element:777
Project # (CIP Only): N/A
Account:540450 Reimbursement to Developers
RECOMMENDATION:
Staff recommends approval of the Water Distribution Main Line Extension Construction and
Reimbursement Agreement with Mrs. Esther Ybarra for the installation of an 8-inch water
distribution main line to provide water and fire protection service to the planned residential
property named Ybarra Terrace Lot 1.
LIST OF SUPPORTING DOCUMENTS:
Ordinance with exhibit
Presentation
Location Map
Ordinance authorizing a Water Distribution Main Line Extension
Construction and Reimbursement Agreement with Esther Ybarra to
extend a lin e to a planned residential property located at 7541 Weber
Road for a term not to exceed 12 months; appropriating $101,950.24 from
the Water Distribution Main Trust Fund to reimburse developer.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1 . The City Manager or designee is authorized to execute a Water
Distribution Main Line Extension Construction and Reimbursement Agreement
(“Agreement”) attached hereto, with Mrs. Esther Ybarra, for the construc tion
and installation of 200 linear feet of an 8-inch water distribution main line, for
the development of the platted property know as Ybarra Terrace, Lot 1, Corpus
Christi, Texas .
SECTION 2. Funding in the amount of $101,950.24 is appropriated from the
No. 4030 -33093 7 Water Distribution Main Trust Fund to reimburse the
Developer for the construction of 200 linear feet of an 8-inch water distribution
main line, and construction improvements in accordance with the agreement .
That the foregoing ordinance was read for the first time and passed to its second reading
on this the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________ Michael Hunter______________
Roland Barrera ________________ Ben Molina ______________
Rudy Garza ________________ Everett Roy ______________
Paulette M. Guajardo ________________ Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this the
_____ day of __________ 2019, by the following vote:
Joe McComb ________________ Michael Hunter _____________
Roland Barrera ________________ Ben Molina _____________
Rudy Garza ________________ Everett Roy _____________
Paulette M. Guajardo ________________ Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
___________________ _____ ________________
Rebecca Huerta Joe McComb
City Secretary Mayor
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money required
for the current fiscal year’s portion of the contract, agreement, obligation or expenditure described
below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has
not been appropriated for any other purpose. Future payments are subject to annual appropriation
by the City Council.
City Council Action Date: August 13, 2019 Legistar Number: 19-1022
Agenda Item:
Ordinance authorizing a Water Distribution Main Line Extension Construction and Reimbursement
Agreement with Esther Ybarra to extend a line to a planned residential property located at 7541
Weber Road for a term not to exceed 12 months; appropriating $101,950.24 from the Water
Distribution Main Trust Fund to reimburse developer.
Amount Required:(Amount to be Certified) $101,950.24
Fund Name Accounting Unit Account No.Activity No.Amount
Water Distribution Main
Trust 4030-21806-777 540450 $101,950.24
Total $101,950.24
□Certification Not Required
Director of Financial Services
Date:
City Council Presentation
August 27, 2019
Ybarra Terrace Water Distribution Line
Construction and Reimbursement Agreement
Aerial Map
NNOLF Cabaniss Field
Ybarra Terrace
(7541 Weber Road)
Subject Property
Vicinity Map
N
NOLF Cabaniss Field
Proposed 8-inch water distribution line
Ybarra Terrace
(7541 Weber Road)
Existing 16” Water Transmission Main
Staff Recommendation
Approval
DATE:July 24, 2019
TO:Peter Zanoni, City Manager
FROM:Nina Nixon-Mendez, Director, Development Services
NinaM@cctexas.com
(361) 826 - 3276
CAPTION:
Ordinance authorizing a Water Distribution Main Extension Construction and Reimbursement
Agreement with NP Homes LLC to extend lines from Rand Morgan Road and McNorton Road
for a planned residential subdivision, for a term not to exceed six months from the execution
of the agreement; appropriating $40,537.20 from the Water Distribution Main Trust Fund to
reimburse developer. (District 1)
SUMMARY:
The Ordinance authorizes a contract with NP Homes LLC to construct distribution lines from
Rand Morgan Road and McNorton Road in the amount of $40,537.20 for a term not to exceed
six months from the execution of the agreement. The water lines are required to provide
water and fire protection service to a planned residential community named Tuloso Reserve
unit 1 located at 1752 Rand Morgan Road. The property is 13.716 acres and is zoned RS 4.5.
BACKGROUND AND FINDINGS:
NP Homes LLC., plans to install 109 linear feet of 8-inch and 230 linear feet of 6-inch water
distribution main line extensions within city limits to serve a planned residential community
property located at 1752 Rand Morgan Road. The new water distribution lines are required in
order to provide adequate water and fire protection service to the planned residential subdivision.
The 109-foot long, 8-inch water line will connect to an existing 16-inch water transmission and
arterial grid main line installed in a utility easement along Rand Morgan Road. The 109 linear feet
of 8-inch water line will be installed by boring under Rand Morgan Road. The 230 linear feet of 6-
inch water distribution line will connect to an existing 6-inch water distribution main line that is
located under McNorton Road. This water line will extend from McNorton Road, via a utility
easement secured by the developer, to the subdivision property.
The developer has requested a Reimbursement Agreement in accordance with UDC Section
8.5.1 Water Trust Fund. Distribution mains are mains of 12 inches inside diameter, or smaller,
Agreement and appropriating funds for NP Homes LLC for the construction of a
Water Distribution Main Extension Construction and Reimbursement Agreement
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 27, 2019
Second Reading Ordinance for the City Council Meeting September 17, 2019
connected to the supply mains that provide fire protection and domestic service. The Distribution
Mains Trust Fund is used to reimburse developers for constructing distribution mains and
oversizing distribution mains off-site.
The project is consistent with Utilities Department water distribution and fire suppression
standards by creating a looped system to support water quality for 106 single-family home lots
(66 in phase I and 40 in phase 2) in the planned subdivision and will support future development
of the property to the north of the subdivision along Rand Morgan Road.
City Council gave direction to staff at the August 13, 2019 City Council meeting to reexamine the
trust funds and to provide recommendations on policies that govern the priority, order,
reimbursement rate and fees charged by the trust funds. City Council directed staff to return within
75 days and present their recommendations.
ALTERNATIVES:
Based upon the current UDC language in section 8.5.1 Water Trust Fund the developer requested
reimbursement for the installation of water distribution lines that will serve the planned subdivision.
If the request were to be denied and the developer had to assume the costs associated with the
installation of the water lines to serve the property, the project may become cost prohibitive. The
development maybe delayed until an alternative to the Utilities Trust Fund as a means to offset
infrastructure construction costs is approved, or until there is an increased demand for new homes
and the additional costs incurred by the developer can be recouped through an increase in home
prices.
FISCAL IMPACT:
The Water Distribution Main Trust Fund has a balance of $506,323,40. Approval of this
reimbursement agreement will leave the water distribution main trust fund with an available
balance of $465,786.20. The expenditure for this project is a one-time cost and is not associated
with any other projects. The water distribution main trust fund receives monthly deposits
generated from prorata and surcharge fees charged during the platting process.
Funding Detail:
Fund:4030 Water Distribution Trust Fund
Organization/Activity: 21806 Water Distribution Main Trust
Mission Element:777
Project # (CIP Only): N/A
Account:540450 Reimbursement to Developers
RECOMMENDATION:
Staff recommends approval of the Water Distribution Main Line Extension Construction and
Reimbursement Agreement with NP Home LP for the installation of an 8-inch and a 6-inch water
distribution main line to provide water and fire protection service to the planned residential
subdivision named Tuloso Reserve Unit 1.
LIST OF SUPPORTING DOCUMENTS:
Presentation
Ordinance with exhibit
Location Map
Proposed offsite 6-inch
Distribution Line
Proposed offsite
8-inch Distribution
Line
Ordinance authorizing a Water Distribution Main Extension Construction and
Reimbursement Agreement with NP Homes LLC to extend lines from Rand Morgan Road
and McNorton Road for a planned residential subdivision, for a term not to exceed six
months from the execution of the agreement; appropriating $40,537.20 from the Water
Distribution Main Trust Fund to reimburse developer.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. The City Manager or designee is authorized to execute a Water Distribution
Main Construction and Reimbursement Agreement (“Agreement”) which is attached hereto,
with NP Homes LLC. for the construction and installation of an 8-inch water distribution
main and a 6-inch water distribution main, for the development of the platted property
known as Tuloso Reserve Unit 1, Corpus Christi, Texas.
SECTION 2. Funding in the amount of $40,537.20 is appropriated from the No.4030-21806
Water Distribution Main Trust Fund to reimburse the Developer for the construction of an 8-
inch water distribution main and a 6-inch water distribution main, and construction
improvements in accordance with the Agreement.
That the foregoing ordinance was read for the first time and passed to its second reading on this
the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________ Michael Hunter______________
Roland Barrera ________________ Ben Molina ______________
Rudy Garza ________________ Everett Roy ______________
Paulette M. Guajardo ________________ Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this the _____
day of __________ 2019, by the following vote:
Joe McComb ________________ Michael Hunter _____________
Roland Barrera ________________ Ben Molina _____________
Rudy Garza ________________ Everett Roy _____________
Paulette M. Guajardo ________________ Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
___________________ _____ ________________
Rebecca Huerta Joe McComb
City Secretary Mayor
City Council Presentation
August 27, 2019
Tuloso Reserve Water Distribution Main Extension
Construction and Reimbursement Agreement
Aerial Map
N
Vicinity Map
N
Tuloso Reserve Unit 1
Proposed 109 LF of 8-inch water line
Proposed 230 LF
of 6-inch water
line (blue)Existing 6-inch distribution line
Existing 16-inch water line
McNorton Road
Rand Morgan Road
Developer owned
property, future
phase of subdivision
Staff Recommendation
Approval
DATE:August 27, 2019
TO:Peter Zanoni, City Manager
FROM:Jermel Stevenson, Director of Parks and Recreation
JermelS@cctexas.com
(361) 826-3042
CAPTION:
Ordinance authorizing an agreement with Corpus Christi PATCH, Inc. to allow use of portions of
Taylor, Mesquite, Starr and Chaparral Streets for the Que Bueno Taco Festival and related
activities scheduled for September 14, 2019.
SUMMARY:
City ordinance requires all lease agreements to be reviewed and approved by City Council when
on City property and fencing the area to charge entry. This lease agreement is for approval of the
date, location and consideration for the 2019 Que Bueno Taco Festival event and related activities
to be held on September 14, 2019.
BACKGROUND AND FINDINGS:
This year’s second annual ¡Que Bueno! Taco Festival is an annual event to celebrate Hispanic
heritage. The festival is organized by Corpus Christi Patch, Inc. also known as CC Patch. Their
mission is to develop, foster, and promote the arts as valuable experiences central to the vitality
of the community by restoring and developing The Ritz Theatre into a state-of-the-art
entertainment and education venue of the highest quality. Also, as part of their mission, their Artist
Nurturing Program provides funding, education, development, subsidized healthcare and growth
programs for the best local talent, with the intention of keeping them local to Corpus Christi,
therefore growing our talent base.
The event is designed to build experiences into the fabric of the festival to highlight and support
our rich creative community. The festival will include food, taco contests, music, children’s music
programming, poetry, and a chihuahua beauty contest. Throughout the festival and in the La
Tienda Art Market, the event will feature local and Hispanic artists.
City ordinance requires a lease agreement if using City property and fencing area to charge entry
for special events, in addition to the Special Event Permit. The lease agreement with CC Patch
includes a onetime Parks and Recreation Large Special Event Permit fee of $400, Health
Que Bueno Taco Festival Lease Agreement
AGENDA MEMORANDUM
First Reading Ordinance for the City Council Meeting August 27, 2019
Second Reading Ordinance for the City Council Meeting September 6, 2019
Permit/Vendor Fees, Development Services Permit Fees. Should any City services be utilized for
the Event, then the Parks & Recreation Director will invoice CC Patch for costs of all such City
services, including but not limited to, services provided for the Event by City Utilities Department,
City Solid Waste Operations Department, City Parks and Recreation Department, City Police
Department, and City Fire Department within thirty (30) calendar days after the Event.
ALTERNATIVES:
The alternative is not to approve the agreement and request the group to reconsider the location
and date of the proposed event. This would impact the availability of scheduled vendors and
performers that have already committed to participate. A date change may also deter from the
purpose of the event which is to celebrate Hispanic heritage month.
FISCAL IMPACT:
Approval of this lease agreement results in receipt of a $400 Special Event Permit fee and
increased visibility and economic growth to the downtown area. The Special Event Permit fees
are a part of Fund 4710 Visitor’s Facility Fund.
FUNDING DETAIL:
Fund: 4710 Visitor’s Facility Fund
Organization/Activity: 13710 Cultural Facility Maintenance
Mission Element: 888 Revenue
Project # (CIP Only): Not Applicable
Account: 302350 Special Event Permits
RECOMMENDATION:
Staff recommends approving an agreement with Corpus Christi PATCH, Inc. to allow use of
portions of Taylor, Mesquite, Starr and Chaparral Streets for the Que Bueno Taco Festival.
LIST OF SUPPORTING DOCUMENTS:
Ordinance
Lease Agreement with Exhibits
Ordinance authorizing an agreement with Corpus Christi PATCH, Inc. to
allow use of portions of Taylor, Mesquite, Starr and Chaparral Streets for
the Que Bueno Taco Festival and related activities on September 14, 2019
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. That the City Manager or designee is authorized to execute an agreement with
Corpus Christi PATCH, Inc. to allow use of portions of Taylor, Mesquite, Starr and Chaparral
Streets, for the Que Bueno Taco Festival and related activities on September 14, 2019.
That the foregoing ordinance was read for the first time and passed to its second reading on
this the _____ day of ___________, 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
That the foregoing ordinance was read for the second time and passed finally on this the
_____ day of __________ 2019, by the following vote:
Joe McComb ________________Michael Hunter______________
Roland Barrera ________________Ben Molina ______________
Rudy Garza ________________Everett Roy ______________
Paulette M. Guajardo ________________Greg Smith ______________
Gil Hernandez ________________
PASSED AND APPROVED on this the ______ day of _________________, 2019.
ATTEST:
_________________________________________________
Rebecca Huerta Joe McComb
City Secretary Mayor
Page 11 of 14
XHIBIT
Exhibit A
AGENDA MEMORANDUM
Action item for the North Padre Island Development Corporation Meeting of August 27, 2019
DATE:August 8, 2019
TO:Peter Zanoni, City Manager
FROM:Arlene Medrano, Business Liaison
ArleneM@cctexas.com
361-826-3356
CAPTION:
Annual meeting of the North Padre Island Development Corporation.
SUMMARY:
This is the annual meeting of the North Padre Island Development Corporation (NPIDC).
The NPIDC must have at least one annual meeting, and the NPIDC investment policy
must be approved annually. The NPIDC is also required to approve TIF #2 expenditures
and will therefore review the FY2020 budget presented here.
BACKGROUND AND FINDINGS:
Items for this meeting include:
-July 23, 2019 Special Meeting Minutes for approval
-Election of Officers
-Treasurer’s Report
-Resolution approving the annual adoption of NPIDC investment policies
-Motion to approve the FY2020 TIF #2 Budget
The NPIDC is a local government corporation. The NPIDC issued the bonds for the
Packery Channel Project. To repay the bonds, the NPIDC receives the tax increment
funds from the TIRZ #2 and the City. The NPIDC manages the funds and uses them to
repay the bonds and other obligations, to cover administrative expenses of the TIRZ #2,
and for other approved TIRZ #2 projects consistent with the project plan. NPIDC action
is required to approve expenditures.
North Padre Island Development Corporation Annual Meeting
ALTERNATIVES:
In order to participate in TexPool (which is a local government pool utilized by the City of
Corpus Christi), the NPIDC is required to adopt by resolution both a written investment
policy and an investment strategy (pursuant to Texas Government Code, Chapter 2256).
Approval of this item is needed to adhere to this requirement. Since the City of Corpus
Christi currently adopts an annual Investment Policy – that includes a section on
investment strategy – it is recommended that NPIDC approve the City’s Investment Policy
by resolution.
FISCAL IMPACT:
The FY2020 TIRZ #2 Budget is budgeted in the Special Revenue Fund 1111 (Padre
Island), also known as TIF #2. Revenue for this fund is derived from the Tax Increment
Reinvestment Zone Number Two (TIRZ #2), Corpus Christi, as is a contributing
partnership between the City of Corpus Christi, Nueces County and the Hospital District.
Total proposed revenue for FY2020 is $4,847,217. Total proposed expenditures are
$10,728,544. Closing balance is proposed to be $8,265,848.
FUNDING DETAIL:
Fund:1111 Reinvestment Zone #2 (TIF #2)
Organization/Activity: All
Mission Element:707 Economic Development
Project # (CIP Only):N/A
Account:All
RECOMMENDATION:
Staff recommends approving all items as presented in the NPIDC Agenda.
LIST OF SUPPORTING DOCUMENTS:
Meeting Agenda
July 23, 2019 Special Meeting Minutes
Treasurer’s Report
Resolution- Investment Policy and Investment Strategy
Motion- FY2020 TIF #2 Budget
AGENDA
NORTH PADRE ISLAND DEVELOPMENT CORPORATION MEETING
Date:Tuesday, August 27, 2019
Time:During the meeting of the City Council beginning at 11:30 a.m.
Location:City Council Chambers, Corpus Christi City Hall
1201 Leopard Street
Corpus Christi, Texas 78401
1.Call meeting to order.
Secretary Rebecca Huerta calls roll.
Board of Directors
Greg Smith, President
Joe McComb, Vice President
Gil Hernandez
Rudy Garza
Michael Hunter
Ben Molina
Roland Barrera
Paulette Guajardo
Everett Roy
Officers
Peter Zanoni, Executive Director
Rebecca Huerta, Secretary
Paul Pierce, Assistant Secretary
Constance P. Sanchez, Treasurer
Judy Villalon, Assistant Treasurer
2.Election of Officers
3.Approve minutes from the Board meeting on July 23, 2019
4.Treasurer’s Report
5.Resolution adopting the Investment Policy and Investment Strategy for the North Padre
Island Development Corporation
6.Motion approving the fiscal year 2019-2020 TIRZ #2 budget
7.Public Comment.
8.Adjourn
NORTH PADRE ISLAND DEVELOPMENT CORPORATION
CITY HALL – COUNCIL CHAMBERS
1201 LEOPARD ST.
TUESDAY, JULY 23, 2019
DURING THE CITY COUNCIL MEETING BEGINNING AT 11:30 A.M.
PRESENT:
Members Staff
Greg Smith, President Keith Selman, Executive Director
Joe McComb, Vice President Rebecca L. Huerta, Secretary
Gil Hernandez Paul Pierce, Assistant Secretary
Rudy Garza Constance P. Sanchez, Treasurer
Michael Hunter Judy Villalon, Assistant Treasurer
Ben Molina Arlene Medrano, Business Liaison
Roland Barrera
Paulette Guajardo
Everette Roy
1. Call meeting to order – President Smith called the meeting to order at 2:23 p.m.
Secretary Rebecca L. Huerta called the roll and verified that the necessary quorum of
the board and the required officers were present to conduct the meeting.
2. Public Comment – None.
3. Approval of the minutes from the Board meeting on April 23, 2019 – Mr. Garza
made a motion to approve the minutes, seconded by Ms. Guajardo and passed
unanimously.
4. Treasurer’s Report – Treasurer Constance P. Sanchez provided the treasurer’s report
ending June 30, 2019, which included: total assets; revenues; expenditures; and fund
balance.
5. Motion approving expenditures as laid out in Exhibit H to the revised Project and
Financing Plan for the Tax Increment Reinvestment Zone #2. – Business Liaison
Arlene Medrano stated that the purpose of this item is to approve expenditures as laid
out in Exhibit H to the revised Project and Financing Plan. She further stated that the
TIRZ #2 Board approved the item at their June 10, 2019 meeting, and City Council will
see a project for approval on Item 16 in today’s City Council’s regular agenda. In
summary, Ms. Medrano stated the following: we have $100,000 in contingency for all
TIRZ #2 funds; we are increasing the budget for the Packery Channel Pavilion by
$23,000; and we are correcting a typo for the Packery Channel Shoreline Surveys to
reflect the correct amount of $286,000.
Mr. Barrera made a motion to approve Item 5, seconded by Mr. Hunter and passed
unanimously.
6. Adjournment – The meeting was adjourned at 2:30 p.m.
ASSETS
Cash, cash equivalents and investments 16,075,373$
Accrued Interest 13
Total assets 16,075,386
LIABILITIES AND FUND BALANCES
North Padre Island Development 16,075,386
Total fund balance 16,075,386
Total liabilities and fund balances 16,075,386$
-
North Padre Island Development Corporation
Balance Sheet
June 30, 2019
Revenues
Taxes and business fees 3,989,059$
Earnings on investments 258,847
Sale of scrap/city property 31,803
Total revenues 4,279,709
Expenditures
Community Development 33,173
Debt service
Interest 130,500
Paying agent fees 5,694
Total expenditures 169,367
Excess (deficiency) of revenues over (under) expenditures 4,110,342
Other financing sources (uses)
Transfer out (10,446)
Excess of revenues and other financing
sources over expenditures and other uses 4,099,896
Fund balance at beginning of year 11,975,490
Fund balance as of June 30, 2019 16,075,386$
Balance in Capital Improvement Fund (Fund 3278)917,948$
North Padre Island Development Corporation
Income Statement
For the Nine Months Ended June 30, 2019
Resolution adopting the Investment Policy and Investment Strategies
for the North Padre Island Development Corporation.
WHEREAS, the Texas Public Funds Investment Act requires the governing body
of the North Padre Island Development Corporation (the “Corporation”) to adopt an
investment policy and investment strategy; and
WHEREAS, the Board wishes to reaffirm and adopt its current investment policy
and strategy with no substantive changes;
Therefore, be it resolved by the Board of Directors of the North Padre Island
Development Corporation:
Section 1. A copy of the North Padre Island Development Corporation Investment Policy,
which contains separate investment strategies, is attached to this resolution as Exhibit A
and is incorporated by reference into this resolution as if set out here in its entirety. The
Board has reviewed the recommended the investment policy and separate investment
strategies.
Section 2. No substantive changes have been made to the investment policy or
investment strategy.
Section 3. The Board adopts the North Padre Island Development Corporation
Investment Policy and its separate investment strategies.
ATTEST: NORTH PADRE ISLAND
DEVELOPMENT CORPORATION
Rebecca Huerta, City Secretary Greg Smith, President
Corpus Christi, Texas
_________ day of ___________________, 20____
The above resolution was passed by the following vote:
Greg Smith ____________________
Roland Barrera ____________________
Rudy Garza ____________________
Paulette M. Guajardo ____________________
Gil Hernandez ____________________
Michael T. Hunter ____________________
Joe McComb ____________________
Ben Molina ____________________
Everett Roy ____________________
North Padre Island
Development Corporation
Investment Policy and
Investment Strategy
Adopted
August 27, 2019
i
TABLE OF CONTENTS
I. POLICY STATEMENT ........................................................................................... 1
II. SCOPE ................................................................................................................ 1
III. PRUDENCE ........................................................................................................ 1
IV. OBJECTIVES ...................................................................................................... 2
V. LEGAL LIMITATIONS AND AUTHORITIES ........................................................... 2
VI. DELEGATION OF AUTHORITY AND RESPONSIBILITY......................................... 2
VII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS ................... 3
VIII. AUTHORIZED INVESTMENTS .......................................................................... 4
IX. COLLATERALIZATION ........................................................................................ 5
X. SAFEKEEPING .................................................................................................... 5
XI. INTERNAL CONTROLS ....................................................................................... 6
XII. REPORTING ..................................................................................................... 7
XIII. DEPOSITORIES ................................................................................................ 7
XIV. INVESTMENT POLICY ADOPTION ................................................................... 7
XV. INVESTMENT STRATEGY ................................................................................. 8
XVI. GLOSSARY .................................................................................................... 10
APPENDICES
A. TEXAS PUBLIC FUNDS INVESTMENT ACT……………………………………………………12
B. RESOLUTION……………………………………………………………………………………………..49
1
NORTH PADRE ISLAND DEVELOPMENT CORPORATION
INVESTMENT POLICY AND STRATEGY
Proposed Adoption Date TBD
This Investment Policy sets forth the specific policies and guidelines and general strategy for
the investment of funds of the North Padre Island Development Corporation (the
"Corporation") in order to achieve the Corporation's goals of safety, liquidity, diversification,
and yield and to preserve the public trust. This Policy satisfies the state statutory requirements
of the Public Funds Investment Act, Texas Government Code, Chapter 2256 (the "Act") to
define and adopt a formal investment policy and strategy and assures compliance with the Act.
I. POLICY STATEMENT
It is the policy of the Corporation that the administration of its funds and the investment of
those funds shall be handled as its highest public trust. Investments shall be made in a manner
which will provide maximum security of principal invested through risk management and
diversification strategies while meeting the cash flow needs of the Corporation.
The receipt of a reasonable yield will be secondary to the requirements for safety and liquidity.
Earnings from investment will be used in a manner that best serves the interests of the
Corporation.
II. SCOPE
This Investment Policy applies to all the financial assets of the Corporation.
III. PRUDENCE
The standard of care established by law to be used in the investment process shall be the
"prudent person standard" and shall be applied in the context of managing the overall
portfolio, rather than a consideration as to the prudence of a single investment. The standard
states that:
Investments shall be made with judgment and care, under circumstances then prevailing, which
persons of prudence, discretion, and intelligence exercise in the management of their own
affairs, not for speculation, but for investment, considering the probable safety of their principal
as well as the probable income to be derived.
2
IV. OBJECTIVES
All funds shall be managed and invested with four primary objectives, in order of their priority:
safety, liquidity, diversification and yield.
a. Safety:
The preservation and safety of principal is the Corporation’s foremost objective.
Investments shall be undertaken in a manner that seeks to ensure the preservation of
capital in the overall portfolio. Authorized investments are chosen for their high credit
quality and stability.
b. Liquidity:
The portfolio shall remain sufficiently liquid, and retain a liquidity buffer, to assure that the
Corporation meets all reasonably anticipated expenditures. Investment decisions will be
based on anticipated cash flows and only high‐credit quality securities will be used for their
marketability.
c. Diversification:
The Corporation will diversify its investments by maturity and market sector in an effort to
avoid incurring unreasonable and avoidable market risks.
d. Yield:
The portfolio shall be designed with the objective of attaining a reasonable market yield
taking into account the investment risk constraints and liquidity needs of the Corporation.
V. LEGAL LIMITATIONS AND AUTHORITIES
Specific investment parameters for the investment of public funds in Texas are found in the
Act. All investments will be made in accordance with these statutes. In addition, investments
shall conform to all financial indentures and trust requirements.
VI. DELEGATION OF AUTHORITY AND RESPONSIBILITY
a. Corporation Board
The Corporation Board has ultimate fiduciary responsibility for all funds. The Board is
responsible for reviewing and adopting the Investment Policy and Strategy on no less than
an annual basis. The Board has resolved to designate the Investment Committee of the
City of Corpus Christi and the authorized Investment Officers of the City of Corpus Christi
as the Corporation's Investment Committee and Investment Officers, respectively. The
Treasurer or Assistant Treasurer of the Corporation Board will coordinate with these
Investment Officers on all strategy and purchase decisions to provide cash flow
3
requirements. This will provide efficiency and cost effectiveness but retain control of
investment strategy and final decision‐making by the Corporation. The Board shall receive
and review quarterly investment reports from the Investment Committee.
b. Investment Committee
An Investment Committee shall meet at least quarterly to review and determine
operational strategies and to monitor investment results. The Investment Committee shall
include in its deliberation such topics as: economic outlook, diversification, maturity
structure, risk, and performance of the portfolio. The Investment Committee shall be
responsible for monitoring, reviewing, and making recommendations regarding the
Investment Policy and Strategy to the Corporation Board. The Investment Committee will
review quarterly investment reports before submission to the Board.
c. Investment Officer
The Investment Officers will be responsible for the daily operations of the investment
program and provide complete reports to the Investment Committee on a quarterly basis.
The Investment Officers will retain all documentation on investment transactions and will
direct the settlement and safekeeping of securities in accordance with any controlling
Indenture of Trust. Should funds be removed from Trust, the Investment Officers will settle
investments into the City's safekeeping account and provide documentation of the
safekeeping to the Board representatives.
All participants in the investment process shall seek to act responsibly as custodians of the
public trust. The Investment Officers will avoid any transaction that might impair public
confidence in the Corporation. The Investment Officers may not engage in an investment
transaction except as provided under the terms of this Policy.
VII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS
All investment transactions shall be made through the financial institutions or broker/dealers
the City Investment Committee has approved, and all requirements for these institutions of
the City are to be met for Corporation funds.
No investment transactions may be entered into with a brokerage subsidiary of the City or the
Corporation’s safekeeping bank in order to perfect delivery versus payment (DVP)
requirements for trade independence.
Each authorized financial institution and broker/dealer will be provided a copy of the
Corporation's Investment Policy to assure that they are familiar with the goals and objectives
of the Corporation. If material changes are made to the Policy, a new Policy will be sent.
Any local government investment pools in which the Corporation participates shall sign a
4
written certification, in a form acceptable to the Corporation, substantially to the effect that
the pool has:
a. Received, and thoroughly reviewed the Policy, and
b. Acknowledged that the pool has implemented reasonable controls and procedures in
an effort to preclude investment transactions not authorized by the Policy.
VIII. AUTHORIZED INVESTMENTS
a. Investments
Authorized investments under this Policy shall be limited to the instruments listed below
as further described by the Act. If additional types of securities are approved for
investment of public funds by state statute, they will not be eligible for investment by the
Corporation until this policy has been amended and the amended version adopted by the
Corporation Board.
1. Obligations of the US Government, its agencies and instrumentalities, excluding
mortgage backed securities, with a maximum stated maturity of three (3) years.
(2256.009(1))
2. Fully FDIC insured depository certificates of deposit of banks doing business in Texas
with a maximum maturity of one year. (2256.010)
3. Fully collateralized direct repurchase agreements with a defined termination date
secured in accordance with this policy and placed with a primary securities dealer.
All repurchase agreement transactions shall be governed in accordance with the
Act. The maximum stated maturity shall be one year with the exception of flex
repurchase agreements used for bond proceeds capital projects. The flex
repurchase agreement transaction shall be matched to the expenditure plan of the
bonds. (2256.011)
4. AAA, or equivalent, rated local government investment pools defined by the Act
and striving to maintain a $1 NAV and specifically approved for participation by a
resolution of the Board. (2256.016)
5. AAA‐rated, SEC registered money market mutual funds which strive to maintain a
$1 net asset value. (2256.0.14(a))
6. Fully FDIC insured interest bearing depository accounts of banks in Texas.
(2256.009)
7. General debt obligations of any US state and any political subdivision of any US state
rated no less than A by a nationally recognized rating agency and with a maximum
stated maturity of two years. (2256.009)
8. FDIC insured brokered certificate of deposit securities from a bank in any US state,
delivery versus payment to the City’s safekeeping agent, not to exceed one year to
maturity. Before purchase, the Investment Officers must verify the FDIC status of
the bank on www.fdic.gov to assure the bank is FDIC insured. (2256.009)
9. A1/P1 rated commercial paper with a maximum maturity of 180 days. (2256.013)
5
10. Guaranteed investment contracts with a maximum maturity of two years and
executed in accordance with the Act. (2256.015)
11. Securities lending transactions with primary dealers or banks doing business in
Texas in accordance with the Act. (2256.0115)
b. Competitive Bidding Requirement
All securities, including depository certificates of deposit, will be purchased only after at
least three (3) competitive offers are taken to verify that the Corporation is receiving fair
market value/price for the investment.
c. Delivery versus Payment Requirement
All security transactions, including collateral for repurchase agreements, shall be
conducted on a delivery versus payment (DVP) basis.
IX. COLLATERALIZATION
As a local government corporation, the Corporation is not authorized to have collateral pledged
to it for time and demand bank deposits in accordance with FDIC regulations. Time and
demand deposits in any bank holding company must be limited by the FDIC insurance level.
a. Repurchase Agreements Owned Collateral
Collateral under a repurchase agreement is owned by the Corporation. (2256.011) It will
be held by an independent third‐party safekeeping institution approved by the Corporation
under an executed Bond Market Master Repurchase Agreement. Securities (collateral)
with a market value totaling 102% of the principal and accrued interest of the repurchase
agreement is required and the counter‐party is responsible for the monitoring and
maintaining of collateral and margins daily.
Authorized collateral for repurchase agreements will include only:
1. Cash;
2. Obligations of the US Government, its agencies and instrumentalities including
mortgage‐backed securities and CMO which pass the bank test; or
3. Debt obligations of any US state or US state sub‐division rated A or better by at least
one nationally recognized rating agency.
X. SAFEKEEPING
The Corporation shall maintain safekeeping under the Indenture of Trust, as applicable. All
security transactions shall be settled on a delivery versus payment (DVP) basis by the
safekeeping institution. Should funds be removed from Trust, the Investment Officers will
settle investments into the City's safekeeping account and provide documentation of the
6
safekeeping to the Board representatives. (2256.005)
Securities shall not be held in any brokerage account. Securities shall not be bought from the
Corporation’s depository in order to provide perfected delivery versus payment.
The safekeeping institution shall be required to issue safekeeping receipts listing each specific
security, rate, description, maturity, CUSIP and other pertinent information which will be
maintained by the Investment Officers.
XI. INTERNAL CONTROLS
The Investment Officers will maintain controls to regulate the activities of the investment
program in accordance with this policy. The controls will be reviewed annually with the
independent auditor of the City. The controls shall be designed to prevent loss of funds due
to fraud, employee error, misrepresentation by third parties, unanticipated market changes,
or imprudent actions. Internal controls deemed most important would include: competitive
bidding, control of collusion, separation of duties, safekeeping, delegation of authority, and
documentation.
a. Cash Flow Forecasting
Cash flow analysis and forecasting is designed to protect and sustain cash flow
requirements of the Corporation. The Board will inform the Investment Officers of
anticipated cash flows which will be used for cash flow and investment purposes.
b. Loss of Rating
The Investment Officers shall monitor, on no less than a weekly basis, the credit rating on
all authorized investments in the portfolio which require ratings by policy or law. Ratings
will be based upon independent information from a nationally recognized rating agency. If
any security falls below the minimum rating required by Policy or law, the Investment
Officers shall notify the Board of the loss of rating, conditions affecting the rating and
possible loss of principal with liquidation options available, within one week after the loss
of the required rating. (2256.021)
c. Monitoring FDIC Coverage
The Investment Officers shall monitor, on no less than a weekly basis, the status and
ownership of all banks issuing brokered CDs owned by the Corporation based upon
information from the FDIC. If any bank has been acquired or merged with another bank in
which brokered CDs are owned by the Corporation, the Investment Officers shall
immediately liquidate any brokered CD which places the Corporation above the FDIC
insurance level.
7
XII. REPORTING
The Investment Officers shall provide quarterly reports to the Board in accordance with the
Act (2256.023) and containing sufficient information to permit an informed outside reader to
evaluate the performance of the investment program. At a minimum, the report shall include:
a. Description of each investment and depository position,
b. Amortized book and market values at the beginning and end of the reporting period,
c. Amortized book value and market value of each separately invested asset at the
beginning and end of the reporting period market by sector and fund,
d. Maturity date of each separately invested asset,
e. Account, fund or pooled fund group for which each investment was acquired (as
applicable),
f. Earnings for the period, and
g. Overall yield for the portfolio(s) in comparison to its benchmark yield for the
comparable period.
Market prices for market value calculations shall be obtained from independent sources.
XIII. DEPOSITORIES
The Corporation will use the City’s depository bank or, if applicable, the depository listed in the
Indenture of Trust. The City designates one banking institution for banking services through a
competitive process at least every five years. Written depository agreements shall be executed
before funds are transferred.
XIV. INVESTMENT POLICY ADOPTION
The Corporation Board shall review and adopt by resolution its Investment Policy and Strategy
not less than annually and the approving resolution shall designate any changes made to the
Policy.
8
XV. INVESTMENT STRATEGY
The Corporation portfolio will be designed and managed based on projected cash flows to
provide for all anticipated and projected cash needs. The portfolio is to be managed pro‐
actively considering ongoing market changes but is essentially a buy‐and‐hold portfolio.
Information on expected expenditures from the Board will be incorporated into investment
decisions. The overall investment program shall be designed and managed with a degree of
professionalism which is worthy of public trust. The Corporation maintains separate funds as
required by the Indenture of Trust. Specific strategies for each fund are as follows:
a. Pledged Revenue Fund Strategy – The Corporation’s Pledged Revenue Fund is an
aggregation of proceeds from bond issues and tax increment revenue. The objectives
of this fund are to:
1. ensure safety of principal by investing only in high‐quality investments for which
a strong secondary market exists which are designed to assure on‐going
suitability and marketability of such investments;
2. ensure that anticipated cash flows are matched with adequate investment
liquidity or that the terms of the secured investment agreement permit
maximum flexibility for the City in making withdrawals;
3. manage market and credit risk through diversification and control of
counterparty risk; and
4. attain a market rate of return commensurate with the objectives and
restrictions set forth in this Policy, the Indenture of Trust, the Tri‐Party
Agreement, and the bond ordinance to produce a reasonable market yield
commensurate with its overall low risk strategy.
b. Reserve Fund Strategy – The Corporation’s Reserve Fund are funds required by the
Indenture of Trust to be maintained and intact throughout the life of the debt issue.
The objectives of this fund are to:
1. ensure safety of principal by investing only in high‐quality investments for which
a strong secondary market exists which are designed to assure on‐going
suitability and marketability of such investments;
2. ensure that anticipated cash flows are matched with adequate investment
liquidity or that the terms of the secured investment agreement permit
maximum flexibility for the City in making withdrawals;
3. manage market and credit risk through diversification and control of
counterparty risk; and
4. attain a market rate of return commensurate with the objectives and
restrictions set forth in this Policy, the Indenture of Trust, the Tri‐Party
Agreement, and the bond ordinance to produce a reasonable market yield
commensurate with its overall low risk strategy.
c. Debt Service Fund Strategy – The Corporation’s Debt Service Fund consists of interest
9
earnings from the Reserve Fund. Twice a year funds are transferred from the Pledged
Revenue Fund to the Debt Service Fund for the debt service payment. The objectives
for this fund are to:
1. ensure safety of principal by investing only in high‐quality investments for which
a strong secondary market exists which are designed to assure on‐going
suitability and marketability of such investments;
2. ensure that anticipated cash flows are matched with adequate investment
liquidity or that the terms of the secured investment agreement permit
maximum flexibility for the City in making withdrawals;
3. manage market and credit risk through diversification and control of
counterparty risk; and
4. attain a market rate of return commensurate with the objectives and
restrictions set forth in this Policy, the Indenture of Trust, the Tri‐Party
Agreement, and the bond ordinance to produce a reasonable market yield
commensurate with its overall low risk strategy.
The Corporation may combine funds for investment purposes into one portfolio while
addressing all the needs of specific funds in the portfolio. The overall portfolio shall have a
maximum dollar‐weighted average maturity (WAM) of one year designed to meet anticipated
cash flow needs.
The risks in the portfolio shall be measured quarterly against a risk benchmark designed to
mirror the authorized market investments and the Corporation's cash flow requirements.
Because the portfolio is dictated by cash flow needs, the benchmark becomes a measure of
risk which reflects the primary market rates matched to the WAM. With a maximum WAM of
one year, the risk benchmark is established as the one‐year Treasury Bill for the comparable
period. The portfolio should track the risk benchmark but will naturally lag as market interest
rates, which adjust daily, move.
10
XVI. GLOSSARY
Agency – Federal government organizations set up for specific purposes such as management
of resources, financial oversight or funding for specific purposes (ex: FNMA, FHLMC, GNMA,
FHLB, FAMCA, FFCB, and TVA). They carry the implicit guarantee of the US Government.
Benchmark – A recognized index or basis used to compare either performance or risk in a
portfolio. In governmental portfolios, which are controlled by cash flow demands, the
benchmark is used to measure risk. The benchmark is based on the primary markets used by
the portfolio (US Treasuries) and the anticipated maturity of the portfolio (the WAM).
Broker – A financial firm registered with FINRA, the SEC, and the State to bring a buyer and
seller together for an investment transaction. A broker carries no inventory of securities owned
by the firm.
Dealer – Dealers carry an inventory of securities and sell from their inventory or broker trades
as a broker. Primary dealers are recognized by the NY Fed and must adhere to strict financial
requirements. Primary dealers transact in most markets domestically and internationally.
Regional dealers are smaller firms and may focus on only specific markets.
CUSIP Number – A 9‐character alphanumeric code which identifies a financial security for
purposes of facilitating clearing and settlement of trades.
Custodian – An approved independent custodian charged with the safekeeping of securities
owned by or pledged to the City. An independent custodian is one not affiliated with any
pledging institution or counter‐party.
Delivery versus Payment (DVP) – The process whereby a custodian receives a security and
verifies it is the correct security from the investor before any funds are released for its
purchase.
FINRA (Financial Institutions Regulatory Authority) – A self‐regulated organization of
broker/dealers.
Instrumentality – Government agency or corporation established for a specific purpose.
Investment Portfolio – Assets invested in securities and financial transactions including cash
in bank accounts under authority of the Investment Policy.
Securities – A fungible, negotiable financial instrument of financial value. Securities authorized
by this Policy are debt instruments of the US Government or local governments.
Securities Lending – A financial transaction in which securities owned by investing entity is lent
11
out on margin (for interest earnings). Ownership of the securi ty remains with the lender. Fund
from the lending transaction are reinvested for the same length of the loan providing
incremental income to the portfolio.
Settlement – The process of delivering a security to the new owner of that security. Settlement
for book entry (electronic) securities is usually over the FedWire system of the Federal Reserve.
Settlement done DVP assures the safest process because no funds are released until the
security is received and verified by the custodian.
WAM (Weighted Average Maturity) – The average period of time until portfolio securities
mature, weighted by their book value in proportion to the total amount invested in the
portfolio.
Account
Number Account Description
Actual
Revenues
2017 - 2018
Original
Budget
2018 - 2019
Amended
Budget
2018 - 2019
Estimated
Revenues
2018 - 2019
Proposed
Budget
2019 - 2020
Reserved for Encumbrances 990,000$ 1,070,000$ -$
Reserved for Commitments 8,260,716 10,905,490 14,147,173
Unreserved - - -
Beginning Balance 9,250,716$ 11,975,490$ 14,147,173$
Property Taxes
300020 RIVZ#2 current taxes-City 2,281,607$ 2,412,597$ 2,412,597$ 2,453,000$ 2,713,707$
300050 RIVZ#2 current taxes-County 1,151,264 1,171,473 1,171,473 1,175,000 1,298,306
300060 RIVZ #2 current taxes-Hospital 454,462 488,618 488,618 459,000 494,113
300110 RIVZ#2 delinquent taxes-City 21,193 18,998 18,998 11,000 19,511
300130 RIVZ#2 delnquent taxes-Del Mar 1 - - 10 -
300140 RIVZ#2 delinquent taxes-County 10,163 10,500 10,500 6,000 21,180
300150 RIVZ#2 delinqnt taxes-Hospital 4,130 4,600 4,600 3,000 4,800
300210 RIVZ#2 P & I - City 16,714 25,000 25,000 14,000 25,700
300230 RIVZ#2 P & I - Del Mar 2 - - 12 -
300240 RIVZ#2 P & I - County 8,329 12,001 12,001 7,500 12,500
300250 RIVZ#2 P & I-Hospital District 3,307 7,201 7,201 3,200 7,400
Property Taxes Total 3,951,171$ 4,150,988$ 4,150,988$ 4,131,722$ 4,597,217$
Interest and Investments
340900 Interest on Investments 170,426$ 130,000$ 130,000$ 210,892$ 250,000$
340995 Net Inc/Dec in FV of Investments 110 - - - -
Interest and Investments Total 170,536$ 130,000$ 130,000$ 210,892$ 250,000$
Interfund Charges
352000 Transfer from Other Fund 757$ -$ -$ -$ -$
Interfunds Charges Total 757$ -$ -$ -$ -$
Revenue Total 4,122,464$ 4,280,988$ 4,280,988$ 4,342,612$ 4,847,217$
Total Funds Available 13,373,180$ 16,318,102$ 18,994,390$
Note:
City of Corpus Christi - Budget
Reinvestment Zone No. 2 Fund 1111
Revenue Detail by Account
Reinvestment Zone #2, commonly referred to as Packery Channel was created pursuant to the Tax Increment Financing Act to
facilitate development of the land within the boundaries of the tax increment zone. The Zone became effective on November 14,
2000. The funding source is post-2000 incremental property taxes from taxing units with property within the boundaries of the
zone.
Org.
Number Organization Name
Actual
Expenses
2017 - 2018
Original
Budget
2018 - 2019
Amended
Budget
2018 - 2019
Estimated
Expenses
2018 - 2019
Proposed
Budget
2019 - 2020
11305 TIF02 Projects Infrastructure -$ 650,000$ 650,000$ 650,000$ 4,000$
55000 Principal retired 1,070,000 1,240,000 1,240,000 1,240,000 1,400,000
55010 Interest 309,150 261,000 261,000 261,000 205,200
55040 Paying agent fees 5,694 6,000 6,000 6,000 6,000
60000 Operating Transfer Out (CIP)- - - - 9,050,000
60010 Transfer to General Fund 12,846 13,929 13,929 13,929 63,344
Expenditure Total 1,397,690$ 2,170,929$ 2,170,929$ 2,170,929$ 10,728,544$
Reserved for Encumbrances 1,070,000$ -$ -$
Reserved for Commitments 10,905,490 14,147,173 8,265,846
Unreserved - - -
Closing Balance 11,975,490$ 14,147,173$ 8,265,846$
Bond Reserve 1,500,000
Park Road 22 Reserve 4,000,000
Revetment Reserve 0
Maintenance Reserve 500,000
6,000,000
Packery Channel Dredging Design 350,000
Packery Channel Dredging Construction 4,000,000
Packery Channel Revetment 4,600,000
Continengy for all Projects 100,000
For FY 2020 CIP Projects 9,050,000
City of Corpus Christi - Budget
Reinvestment Zone No. 2 Fund 1111
Expenditure Detail by Organization
Reinvestment Zone No. 2 Project List for 2020
PROJECT
PROJECT
BUDGET
EXPENSES
TO DATE
PROJECT
STATUS
PROJECT
NUMBER
1 Packery Channel South Parking Lot Improvements
This project consisted of the demolition of existing facilities,construction of
approximately 11,500 square yards of new flexible pavement,parking lot,two
concrete driveways,minor water and wastewater improvements,landscaping
improvements, lighting improvements, and concrete pedestrian ramp.
$640,447 Completed
March 2006
Projects Include:
Packery Channel Monitoring FY 2008-2009 Complete
Packery Channel Monitoring FY 2009-2010 Complete
Packery Channel Monitoring FY 2010-2011 Complete
2 Packery Channel South Parking Lot, Landscaping Phase 2
This project consisted landscaping and irrigation improvements to the newly
constructed 300-space parking area including the construction of new planting islands
with mexican fan palms, sea grape trees, decorative rock and irrigation.
$145,461 Completed
March 2008
3 Packery Channel Boat Ramp Parking Lot / Access Road
This project consisted of the construction of approximately 17,000 square yards of
HMAC flexible pavement parking facility adjacent to the existing Packery Channel
Boat Ramp;construction of an access road and related signage and pavement
markings,and the installation of 1,000 square yards concrete reinforced pavement
adjacent to boat ramp,concrete bollards;minor drainage improvements;3,500 linear
feet of electrical conduits; and minor landscaping.
$1,053,176 total
project cost.
$549,216 from
TIRZ #2
Completed
July 2009
4 Packery Channel Boat Ramp Dredging
This project consisted of dredging approximately 17,800 cy of the Packery Channel
Boat Ramp and adjacent area.The work included environmental control measures to
prevent erosion and allow for discharge of water from the dredging operations to
discharge into the surf of the Gulf of Mexico.Minor amount of stone were installed at
the boat ramp to enhance shoreline protection.
$431,377 Completed
April 2010
5 Packery Channel South Parking Lot Restroom (Phase 1)
This project included the construction of restroom facilities at the South Parking Lot at the
beach seawall on Windward Drive.The project included separate men and women facilities to
with showers, toilets, changing stations, outdoor seating area, and native landscaping.
$460,743 Completed
July 2010
6 Packery Channel Parking Lot and Overlooks (Phase 2)
This project consisted of improvements along the north and south sides of Packery Channel
including seven overlook structures,parking lot,access road,pedestrian walkways,storm
water structures lighted bollards with electrical receptacles,lighting,landscaping,concrete
benches and repairs to shoreline structures.
$2,869,224 Completed
March 2012
7 Packery Channel Aids to Navigation / Signage
This project consisted of lighting improvements to Packery Channel as required for safety and
security along with signage to mark no wake zones. Per ISAC, additional funds needed to
replace signs following Hurricane Harvey.
$64,500 Completed
December 2012
7a Packery Channel Aids to Navigation / Signage - Hurricane Harvey Repairs
Per ISAC, additional funds needed to replace signs completed in Project 7 following Hurricane
Harvey.
Revised 2/20/18
$65,000 $7,166 Completed
April 2019
E10118-
PackNavAids-No
Wake signs
8 Packery Channel Restroom Facilities (Phase 3)
This project consists of the purchase and installation of a mobile restroom on the north side of
the Packery Channel and adjacent parking lot.The project also includes turn-around and
connector to Zahn Road.A mobile trailor restroom on the south side of Packery Channel with
wastewater lift station and wastewater 2-inch force main (approximately 2,500 linear feet long)
is also being planned.Priority Item.P&R recommends self contained,solar powered mobile
units to be placed at Packery Channel Parking Lot,end of Zahn Road and on South side of PC
(at a location yet to be determined)Build and Install portable restroom shelters to hold
portable restroom units at various locations.Build and Install Portable Shower units on the
North and South side of Packery Channel.Board approval of 4 portable restroom facilities at
$65,000 each plus 20% contingency and shower facilities at $100,000 total.
Revised 2/13/2018
$412,000 $402,000
Solar Powered
Units: Complete.
Showers: Partial
Water line installed
Spring '18. Waiting
on BCC permit.
3399- Packery
Channel RR
Facility Ph
9 Packery Channel Ramps to Jetties (Phase 4)
This project includes ADA beach access on the north side and the south side or the channel to
provide access from the beach to the restroom,lookouts and parking lots.This project will
include the ADA approved mobi-mats on the north side and the south side of Packery Channel
to provide access from the beach to the restrooms,lookouts and parking lots.This project was
designed as part of the Phase 2 project for parking and overlooks.Priority ITem:P&R
recommends a new design for structures since the GLO will not approve construction of
parking lots on the beach. For Mobi-Mats per ISAC recommendation.
Revised 2/20/18
$35,000 $8,979 Complete
E03401- Packery
Channel Imps
Ramps to Jetties
Phase 4
10 Packery Channel Dredging and Beach Nourishment - 2012
PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2
CITY OF CORPUS CHRISTI
RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019
The project consisted of dredging approximately 264,300 cubic yards of beach quality material
from within Packery Channel and placement of the dredged material as beach nourishment
along the Gulf shoreline to the south of Packery Channel,and 15,000 cubic yards of sand from
the north to south end of the N.Padre Island Seawall.Dredging schedule to be determined by
results of annual study of channel.
$1,820,843 Last Completed
March 2012
10a Packery Channel Dredging and Beach Nourishment - 2020
The project consisted of dredging beach quality material from within Packery Channel and
placement of the dredged material as beach nourishment along the Gulf shoreline.Dredging
schedule to be determined by results of annual study of channel.
$350,000
Amending project
plan today for
dredging estimated
winter 2020. In
permitting process.
Waiting to hear
from USACE.
11 Packery Channel Pavilion (Phase 5)
This project includes the pavilion expansion adjacent to the north side restroom or north side
boat launch.This will allow the deck area around the restroom and some sitting areas for
visitors.Design will begin in FY 2016 and construction will follow in FY 2017 dependent upon
available funding.P&R recommends further discussion on this item to determine if another
amenity would better suit the area.ISAC recommends Pavillion staged at the boat ramp
parking lot as well as pavillion like structure on north and south side of the jetty.
Revised 2/20/18
$250,000
Requesting Addt'l
$23,000
Estimated
completion: Fall
2019. At 90%
Design
18144-Construct
Pavillion Packery
Channel Boat
Launch
14 Periodic Survey of Channel Conditions and Shoreline
Packery Channel monitoring began in 2003 by Texas A&M Division of Nearshore Research by
the U.S.Army Corps of Engineers.They ceased monitoring efforts in 2007 and the City
assumed monitoring in 2008.The program includes the collection of bathymetric data in
Packery Channel and the surrounding nearshore,measurement of elevation along the adjacent
beach and inland channel segment (shoreline position),elevation measurements across the
Mollie Beattie Coastal Habitat Community,and measurement of current velocity in the inland
channel segment.
Increase from
$205,000 to
$286,000
$1,847,312
(Lifetime
Expenses to
Date)
2018 monitoring
complete. 2019
Contract Executed
3/29/19.
18140- Packery
Channel
Monitoring FY18-
19
15 Packery Channel Revetment Repair
Storm surge, strong currents, and waves from Hurricane Harvey caused damage to the slope
protection and adjacent appurtenances along the banks of Packery Channel between the SH
361 bridge and the Gulf of Mexico. Repair concepts will be developed for two alternatives; one
to return the project to its approximate pre-storm conditions, and another to upgrade the project
to an improved condition that is more resilient to future storm impacts. The City will procure a
design consultant through the RFQ process, and the selected firm will prepare the construction
plans. Post design, construction will be procured.
Added 2/13/18
$600,000 $417,027 60% submittal
under review.
H171019- Packery
Channel
Restoration
H17007- Harvey
Emergency
Packery Channel
Structural
Damage
Assessment
16 Park Road 22 Bridge
On February 21, 2017, the TIRZ #2 board met and approved the amendment of using funds
from TIRZ #2 to support the construction of two one-way bridges spanning Park Road 22. City
Council approved this amendment on February 20, 2018.
Added 2/20/2018
$4,000,000 $0.00
Waiting for
developer on
canals.
None. Still in
Reserve
17 Beach Crosswalk at St. Augustine & Windward Dr.
Per request of the Island Strategic Action Committee: Traffic improvement on Windward Drive
at Saint Augustine Drive, for pedestrian crossing on Windward Drive to facilitate access to and
from Michael J. Ellis Beach. Scope of work includes: crosswalk, access ramps, traffic signs,
and pavement markings. Estimated costs are $23,000 for the crossing and associated traffic
improvements; $9,000 for solar powered flashing LED crossing signs.
$32,000 $20,331.00 Completed
February 2019.
18150- Traffic
Improvement
Project
18 Feasibility Study
Per Texas Tax Code Sec. 311.011. Project and Financing Plans. (c) Reinvestment
zone financing plans must include (3) a finding that the plan is economically feasible
and an economic feasibility study.$50,000 $33,173 Draft Complete
Expended in
Operating Fund
1111 Org 11305
AGENDA MEMORANDUM
City Council Meeting of August 27, 2019
DATE:August 16, 2019
TO:Peter Zanoni, City Manager
FROM:Dan Grimsbo, Executive Director of Water Utilities
DanG@cctexas.com
361-826-1689
Water Supply Trigger Points
Factors and Recommendations
STAFF PRESENTER(S):
Name Title/Position Department
1. Mark Van Vleck Assistant City Manager
2. Dan Grimsbo Executive Director of Water Utilities Water Utilities
3. Steve Ramos Water Resource Manager Water Utilities
BACKGROUND:
This presentation will discuss the ongoing effect, factors and recommendations regarding a future
water supply and trigger points needed to meet water demands.
The City Council held a retreat meeting on 28-29 January 2019 to discuss the City Council’s Vision
Elements. For the defined second vision element, Infrastructure and Public Services Rated Sound,
Reliable, Fiscally Responsible, the City Council established a Priority A, which states,“Create an
uninterruptible water supply;complete a plan for criteria to move forward on a supply after studies are
completed”.
The City Staff has conducted evaluations, requests for information,and on-going studies for multiple
water supply sources. The following are brief descriptions on the status for each water supply source:
•Water Reuse Project
–Staff is currently working on the creation of a Water Reuse Plan that will establish a
process to identify feasible reuse ideas.
•Aquifer Storage and Recovery Project
–Corpus Christi Aquifer Storage and Recovery feasibility project is currently being
completed and phase two should begin soon.
•Groundwater Project
–Staff is in the beginning stages of evaluating the potential of a groundwater supply
project.
•Seawater Desalination Project
–Siting and Permitting Phase
–Seawater Desalination is the number one priority
–Infinite supply of water available.
To establish a better understanding about when a new water supply should be added to the current
water supply system, the City Council directed staff in March 2019 to establish a trigger point
(timeframe to start construction) for a new water supply.
City Staff organized a small group of customers that included San Patricio Municipal Water District,
Flint Hills, OxyChem, Port of Corpus Christi, CC Regional Economic Development Corporation,
Executive Director of Port Industries of Corpus Christ, AEP, and City Staff. This group worked to
establish a trigger point concept using raw water supply available, regional demand on the water
supply, and financial impacts.
LIST OF SUPPORTING DOCUMENTS:
None