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HomeMy WebLinkAboutAgenda Packet City Council - 11/12/2019City Council City of Corpus Christi Meeting Agenda - Final-revised 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Council Chambers11:30 AMTuesday, November 12, 2019 Addendums may be added on Friday. A.Mayor Joe McComb to call the meeting to order. B.Invocation to be given by Pastor Jerry Ward, Lighthouse Tabernacle. C.Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be led by Marc Harrod, City Hall Liaison Officer, Corpus Christi Police Department. D.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. E.Proclamations / Commendations 1.19-1522 Proclamation declaring November 12, 2019, "Coastal Bend Day of Giving". Proclamation declaring November 12, 2019, "Corpus Christi Be The Match Day" and November 2019, "National Marrow Awareness Month". Proclamation declaring November 23, 2019, "Run the Runway 5K Day". Proclamation declaring November 9-16, 2019, "Flags for Heroes Week". Proclamation declaring November 10-16, 2019, "National Nurse Practitioner Week". F.PUBLIC COMMENT - APPROXIMATELY 12:00 P.M. 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. This is a public hearing for all items on this agenda. G.CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS: a.OTHER H.MINUTES: Page 1 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised 2.19-1540 Regular Meeting of October 29, 2019 and Joint Workshop Session of October 24, 2019. I.BOARD & COMMITTEE APPOINTMENTS: 3.19-1516 Building Code Board of Appeals (2 vacancies) Citizens Advisory Health Board (1 vacancy) Corpus Christi Downtown Management District (2 vacancies) Landmark Commission (1 vacancy) Reinvestment Zone No. 2 Board (9 vacancies) J.EXPLANATION OF COUNCIL ACTION: K.CONSENT AGENDA: (ITEMS 4 - 23) Second Reading Ordinances - Consent 4.19-1377 Ordinance closing, abandoning and vacating a 16,500 square foot portion of 6th Street, a portion of public street lying between Buford Avenue and Hancock Avenue, conditioned upon payment of $28,000 for fair market value of the improved street and execution of an agreement to relocate stormwater infrastructure. (District 1) Sponsors:Development Services 5.19-1100 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-15” Single Family 15 District. Requires 3/4 Vote for zoning change. Sponsors:Development Services 6.19-1383 Ordinance authorizing acceptance of grant from U. S. Department of Justice, Bureau of Justice Assistance, in amount of $175,175 for FY 2019 Edward Byrne Memorial Justice Assistance Grant Program; and appropriating $175,175 in Police Grants Fund with $80,917 of funds distributed to Nueces County and $13,340 of funds distributed to City of Robstown. The remaining funds of $80,918 will be used by the City for enhancement of law enforcement efforts. Sponsors:Police Department 7.19-1455 Ordinance approving the purchase of Harris Public Safety communication radios in an amount not to exceed $3,567,032.20 to be used by the Corpus Christi Police Department from Dailey and Wells Communications, Inc; appropriating $1,189,010.73, from the unreserved fund balance of the General Fund initially budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. Sponsors:Information Technology Services and Contracts and Procurement Page 2 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised 8.19-1388 Ordinance authorizing an agreement with Texas Food and Wine Festival, LLC to allow use of Heritage Park and portions of Fitzgerald Street and Hughes Street for the Corpus Christi Food and Wine Festival Event and related activities on November 23, 2019. Sponsors:Parks and Recreation Department 9.19-1398 Ordinance accepting $31,105.92 from Epic Y Grade Pipeline, LP and authorizing an amendment to the existing Revocable Easement to allow construction of an additional 12-inch pipeline. Sponsors:Utilities Department and Engineering Services 10.19-1393 Ordinance approving the purchase of twenty-six pickup trucks for a total amount not to exceed $951,159.04 from Silsbee Ford of Silsbee, Texas via the GoodBuy Purchasing Cooperative to be used by the Utilities Department’s staff for daily operations; appropriating $951,159.04 from the unreserved fund balance in the Water Fund, the Wastewater Fund, and the Storm Water Fund that was previously budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. Sponsors:Utilities Department and Contracts and Procurement 11.19-1437 Ordinance appropriating anticipated revenues from the Texas Department of Transportation (TxDOT) in the amount of $635,549 and awarding a contract to Mako Contracting, LLC. for construction of sidewalk and lighting improvements for the S.E.A. District Pedestrian Improvement project in the amount of $794,436.22. The project is located in City Council District 1 and the contract will begin upon issuance of notice to proceed. Funding is approved and available from an 80% TxDOT grant and a 20% match from Street Bond 2016 CIP. Sponsors:Street Department and Engineering Services 12.19-1481 Ordinance authorizing the execution of the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District, subject to release of all claims by Beeville Water Supply District and City of Beeville against the City of Corpus Christi and subject to withdrawal of all administrative proceedings filed by Beeville Water Supply District and City of Beeville against the City of Corpus Christi in the Public Utility Commission of Texas and subject to payment of all amounts determined by the City Manager to be owed pursuant to the existing contract between the parties after waiver of $162,809.85 of Future Water Resources Reserve Fund charges that were contested and withheld by said District and authorizing the City Manager to make the aforesaid waiver. Sponsors:Assistant City Manager and Utilities Department Contracts and Procurement - Consent Page 3 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised 13.19-1405 Motion approving the purchase from GT Distributors, Inc. of Austin, Texas for a total amount not to exceed $103,155.00, for weapon-mounted Surefire X300 Ultra LED handgun lights to be used by the Police Department to accompany the new Smith and Wesson M&P 9mm service weapons, with funding through the CC Crime Control Fund. Sponsors:Police Department and Contracts and Procurement 14.19-1318 Motion authorizing a one-year rental agreement with Herc Rentals Inc., of Corpus Christi, Texas, for on-call rental of mini-excavators and attachments used daily by Water Utilities Department for emergency repairs and construction of water and wastewater infrastructure, for a total amount not to exceed $180,726.00, effective upon issuance of a notice to proceed, with funding through the Water and Wastewater Funds. Sponsors:Utilities Department and Contracts and Procurement 15.19-1406 Resolution authorizing a five-year service agreement with Pump Solutions, Inc. of New Caney, Texas for a total amount not to exceed $125,884.00 for maintenance and repairs for three Amacan pumps at the Rincon Bayou Pump Station, effective upon issuance of notice to proceed, with funding in FY2020 in an amount of $74,061.00 through the Water Fund. Sponsors:Utilities Department and Contracts and Procurement 16.19-1380 Resolution authorizing a three-year supply agreement with J.Q & G Incorporated, dba OB Traffic, of Roanoke, Virginia in an amount not to exceed $226,500.00 for the purchase of up to 30 traffic signal cabinets, for Street Operations effective upon issuance of notice to proceed, with FY 2020 funding in the amount of $75,500.00 available through the Street Fund. Sponsors:Street Department and Contracts and Procurement 17.19-1439 Motion authorizing a two-year supply agreement with Wilnat Inc., dba Koons Gas Measurement of Tulsa, Oklahoma in an amount not to exceed $139,750.00 to purchase residential gas regulators, effective upon issuance of notice to proceed, with FY 2020 funding in an amount of $58,229.17 available through the Gas Fund. Sponsors:Gas Department and Contracts and Procurement 18.19-1414 Motion authorizing three, three-year supply agreements for a total amount not to exceed $862,332.75, with an agreement with each of the following vendors: T&W Tire, LLC, of Oklahoma City, Oklahoma, in the amount of $296,030.00 for the purchase of tires for refuse trucks for Solid Waste; Southern Tire Mart, LLC, of Columbia, Mississippi in the amount of $158,202.00 for the purchase of tires for Tahoe police vehicles; and, The Goodyear Tire & Rubber Company, of Akron, Ohio in the amount of $408,100.75 for the purchase of tires for police pursuit vehicles, effective upon issuance of notice to proceed, with FY 2020 funding in an amount of $287,444.25 available through the Fleet Maintenance Fund. Page 4 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised Sponsors:Asset Management Department and Contracts and Procurement 19.19-1345 Motion authorizing two purchases for a total amount of $180,293.42; one with Computer Solutions, of San Antonio, Texas in an amount of $121,793.42 for network equipment, and second with Dell EMC, of Round Rock, Texas in an amount of $58,500.00 for 60 All-in-One Desktop computers; to be used by the community of Corpus Christi at the public libraries and increase broadband capability, effective upon issuance of a purchase order, with funding available in the CDBG Grants fund. Sponsors:Information Technology Services, Libraries and Contracts and Procurement General Consent Items 20.19-1514 Motion authorizing a Joint Funding Agreement with the United States Geological Survey (USGS), U.S. Department of the Interior, for USGS to maintain automated river gauging stations that record stream flows and water quality parameters associated with the Frio and Nueces Rivers and associated tributaries, which is data the City uses daily to manage releases from the City’s reservoir system and for water treatment operations, whereby the USGS contributes $28,950.00 and the City contributes $166,350.00. Sponsors:Utilities Department 21.19-1438 Resolution authorizing execution of Interlocal Cooperation Agreement with Del Mar College for improvements associated with Del Mar College’s new campus located at Yorktown Boulevard and Rodd Field Road in District 5 including a new pedestrian/bicycle bridge and trail, designated turn lanes and driveway cuts, and enhanced landscaping with irrigation. Sponsors:Street Department and Engineering Services 22.19-1382 Resolution amending and reaffirming the City of Corpus Christi’s Investment Policy and Investment Strategies for Fiscal Year 2019-2020. Sponsors:Finance & Business Analysis 23.19-1465 Resolution authorizing Amendment No. 1 to Chapter 380 Economic Development Agreement between the City of Corpus Christi, Texas, voestalpine Texas LLC, and the Port of Corpus Christi Authority of Nueces County, Texas, relating to the development of property. Sponsors:Planning & Environmental Services L.RECESS FOR LUNCH M.PUBLIC HEARINGS: (ITEMS 24 - 25) 24.19-1464 Ordinance authorizing a Water Arterial Transmission and Grid Main Line Extension Construction and Reimbursement Agreement with Braselton Page 5 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised Custom Homes, LTD to extend a water transmission and grid main line for a planned residential subdivision located on CR-33 with a completion date of May 30, 2021; transferring $65,000.00 from the Water Distribution Main Trust Fund to the Water Arterial Transmission and Grid Main Trust Fund; and appropriating $1,485,130.25 from the Water Arterial Transmission and Grid Main Trust Fund to reimburse the Developer per agreement. (District 3) Sponsors:Development Services 25.19-1512 Ordinance amending Section 53-109 of the City Code which allows golf carts in certain areas by adding neighborhood electric vehicles and off-highway vehicles as an allowable mode of transportation within the city, specifically North Padre Island, Mustang Island, and North Beach; and providing for a penalty. Sponsors:Assistant City Manager N.REGULAR AGENDA: (ITEMS 26 - 28) 26.19-0996 Ordinance pertaining to North Beach designating a 1,423 acre area within the jurisdiction of the City of Corpus Christi Tax Increment Reinvestment Zone (TIRZ) Number 4; setting a maximum City financial participation of $20,000,000 via a scaled contribution for a period not to exceed 20 years; establishing a Board of Directors for the TIRZ; and, establishing a preliminary Project and Financing Plan. Sponsors:Business Liaison 27.19-1555 Resolution authorizing execution of an Interlocal Cooperation Agreement with the Nueces County for their 100% increment participation in the North Beach Tax Increment Reinvestment Zone No. 4 for a period ending December 31, 2039 Sponsors:Business Liaison 28.19-1536 Appointment of Reinvestment Zone No. 4 Board of Directors Sponsors:City Secretary's Office O.RECESS CITY COUNCIL MEETING: P.RECONVENE THE CITY COUNCIL MEETING: Q.FIRST READING ORDINANCES: (ITEMS 29 - 33) 29.19-1517 Ordinance to amend the 40-year Lease Agreement with SQH Sports & Entertainment, Inc., which was originally authorized on October 18, 2016 for the lease of approximately 67.69 acres of unimproved land near State Highway 286 and FM 43 (Weber Road) for a regional youth sports complex, with the amendment to provide for extension of the performance milestones in the lease and notice of default. Page 6 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised Sponsors:Assistant City Manager 30.19-1461 Ordinance disannexing approximately 540.79 acres of land located in the La Quinta corridor from the City of Corpus Christi, Texas pursuant to an amendment to a Chapter 380 economic development incentive agreement with the Port of Corpus Christi Authority and voestalpine Texas, LLC; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. Sponsors:Planning & Environmental Services 31.19-1558 Ordinance amending the FY2019-2020 Operating Budget, adopted by Ordinance No. 031870, to create a temporary provisional Fire Captain position within the Fire Department complement. Sponsors:Fire Department 32.19-1501 Ordinance accepting and appropriating Airport Grant #58 in the amount of $9,445,368; awarding a contract in the amount of $6,884,574.42 with Airfield Contracting, a Joint Venture between Head, Inc. of Columbus, Ohio and Jackson Construction Services, LLC, of Jacksboro, Texas for the total base bid and additive alternates 1 and 2 for the Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East General Aviation Apron Phase IV projects, effective upon issuance of notice to proceed, with funding available in the Airport Capital program by acceptance of the grant and; transferring $1,049,486 as a 10% grant match from the unreserved fund balance of the Airport Operational Fund. Sponsors:Aviation Department, Contracts and Procurement and Engineering Services 33.19-1370 Ordinance abandoning and vacating a 10-foot wide by approximately 180-feet in length (1,800 sq. ft.) portion of an existing drainage easement out of Lots 3 & 4, Block 1, Padre Island - Corpus Christi Section E located at 15045 & 15041 Aruba Drive. (District 4) Sponsors:Development Services R.BRIEFINGS: (ITEM 34) 34.19-1430 Texas Legislature Next Steps Lessons from 86th Legislative Session, Interim Forecast, Preparation for 2020 Sponsors:Communications & Intergovernmental Affairs S.EXECUTIVE SESSION: (ITEMS 35 - 37) 35.19-1523 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 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 Page 7 City of Corpus Christi Printed on 11/11/2019 November 12, 2019City Council Meeting Agenda - Final-revised adjacent thereto 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 when deliberation in open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person. 36.19-1524 Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to annexation, disannexation, and potential development agreement(s) with entities that are considering the construction, expansion, and/or ownership of industrial facilities (including, but not limited to proposed Gulf Coast Growth Ventures’ chemical manufacturing facility in San Patricio County and recently annexed industrial facilities in San Patricio County, including but not limited to Voestalpine) and pursuant to Texas Government Code § 551.087 to discuss confidential commercial or financial information pertaining to the aforesaid business prospect(s) that the City seeks to have locate, stay or expand in or near the territory of the City and with which the City may conduct economic development negotiations and/or deliberate possible economic development issues concerning said business prospect(s). 37.19-1525 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 legislation recently approved by or potentially being sought in the Texas Legislature and/or U.S. Congress related to municipal matters. T.IDENTIFY COUNCIL FUTURE AGENDA ITEMS U.ADJOURNMENT Page 8 City of Corpus Christi Printed on 11/11/2019 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com City of Corpus Christi Meeting Minutes City Council 11:30 AM Council ChambersTuesday, October 29, 2019 Addendums may be added on Friday. Mayor Joe McComb to call the meeting to order.A. Mayor McComb called the meeting to order at 11:32 a.m. Invocation to be given by Pastor Rick Barrera, Believe Church.B. Pastor Rick Barrera gave the invocation. Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be led by Jim Davis, Director of Asset Management. C. Mr. Jim Davis 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. 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 October 10, 2019, " Real Men Wear Pink Day". Proclamation declaring October 28-November 1, 2019, "Red Ribbon Week". Proclamation declaring November 2, 2019, "Face to Face Walk for Memory Day". Proclamation declaring November 2019, "50th Anniversary Month of Freddie Records". Commendation for K-Space Contemporary. Page 1City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes The Proclamations and Commendation were presented. PUBLIC COMMENT - APPROXIMATELY 12:00 P.M. 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. This is a public hearing for all items on this agenda. F. Mayor McComb referred to comments from the public. City Attorney Miles K. Risley read the Rules of Decorum for the Council Chambers. City Secretary Rebecca L. Huerta conducted the public comment period. C. J. Johnson, 509 S. Carancahua St., spoke regarding shootings related to mental health. John Powell, 4634 Barnard Dr., thanked a Council member and certain City staff for their assistance resolving a concern relating to high water bills; discussed an experience he had with political corruption; spoke in favor of the Park Road 22 bridge and development of North Beach. The following individuals spoke in support of creating a Tax Increment Reinvestment Zone Number 4 (TIRZ#4) on North Beach: Chris Kuehn, 7038 Pharaoh; Robert Ferguson, 1334 Sandpiper Dr.; Ron Graven, 202 Surfside Blvd.; Gordon Landreth, 1309 Sealane Dr.; Dee Dee Williams, 325 Cape Cod; Ann Foote, 4217 Gulfbreeze Blvd.; Steve Gomez, 6630 Clarion Dr.; Barbara Sico, 19 Hewit Dr.; Carrie Robertson Meyer, 4401 Gulfbreeze Blvd.; Barbara Welder, 202 Reef Ave.; Nueces County Commissioner Carolyn Vaughn; Juan Cantu, 3302 Surfside Blvd.; Taylor Oldroid, 4825 Everhart Rd., on behalf of the Corpus Christi Association of Realtors; and Jerry Bass, 6722 Pharaoh. Margareta Fratila, 3606 Tripoli Dr., spoke regarding development and infrastructure on North Beach. Peter Davidson, 1525 N. Shoreline Blvd., thanked the City and City Departments for maintaining the City of Corpus Christi. Chad Magill, 641 Texas Ave., spoke regarding drainage and the canal option on North Beach; Susie Luna Saldana, 4710 Hakel, spoke regarding funding sources for the development of North Beach; Ray Madrigal de Pancho Villa, 4253 Dody St.; spoke regarding the homeless at Leopard and N. Staples Streets; transporting the homeless to other cities; concerns regarding the use of Lamar Elementary to house the homeless; using Memorial Hospital to house the homeless; and the lateness with which the police unit assigned to respond to individuals who have mental illness responds. Gloria Scott, 4422 S. Alameda St., thanked Council for their recent work on Blucher Park; and using Memorial Hospital to house the homeless. Rolando Garza, 8225 Leopard St., spoke in opposition to re-purposing Lamar Elementary to house the homeless. CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS:G. Mayor McComb referred to City Manager's Comments. City Manager Peter Zanoni reported on the following topics: OTHERa. Page 2City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes 1) Provided an update on FY19/20 budget initiatives. 2) Discussed the status and timeline to hire a new Chief Executive Officer at the Corpus Christi Convention and Visitors Bureau. 3) Announced that the First Friday celebration in the Marina Arts District will take place from 5:30 p.m. - 9:00 p.m. this Friday. 2.North Beach Drainage Analysis Mayor McComb referred to Item 2. City Manager Zanoni discussed the following topics: possible North Beach drainage solutions; a more robust drainage system; that funding is a key component; the cost of a navigable channel and the cost of and need to raise city streets and possible funding sources; if developers have the monies necessary to commit; improving North Beach while meeting the rest of the City's needs; testing Urban Engineering's report via other engineers and by public input; developing a comprehensive calendar for North Beach improvements in order to minimize disruption to residents and businesses; which developers may want to build on the canal; and a long-term plan to address drainage solutions. Assistant City Manager Mark Van Vleck presented information on the following topics: overview; tidal flooding; observed tidal flooding at 10/18/2019; elevations 2.5 feet and below; elevation profiles; Sandbar Ave., Beach Ave., Gulfspray Ave., Surfside Park, Bridgeport Ave., and Breakwater Ave. elevations; street improvements needed and estimated cost; North Beach projects from 2007 - 2019; decrease in sanitary sewer overflows on North Beach; stormwater infrastructure and related funding sources; the total number of buildings on North Beach and the total number of those that are elevated; and the flood insurance rate map. Chip Urban, Urban Engineering, presented information on the following topics: introduction; study area; existing conditions; relative sea level rise; tidal inundation at the north and south end of North Beach; existing drainage; two-part solution (provide better way for stormwater to get out and raise property); Options 1 and 2 layout; Option 3 navigable channel; Option 3 layout; utilities; cost estimates for each of the three options; conclusions; and recommendations. Council members, City Manager Zanoni, Assistant City Manager Van Vleck and Mr. Urban discussed the following topics: elevating residential and commercial buildings on North Beach; extending drainage to properties that cannot be elevated; that there are a large number of properties that can be elevated; phasing in North Beach improvements; installing a better drainage system before evelvating properties; long term elimination of flooding on North Beach; the quantity of soil needed to elevate North Beach; using fill dirt, from other projects in the area, on North Beach; if beach erosion was part of Urban Engineering's study; the effect of beach erosion and the City commissioning a study to get information on this; tidal flooding on North Beach; how Charleston, South Carolina's drainage system works; the use of check valves on stormwater outfalls on North Beach; installation of monitoring wells to determine water table levels in relation to tides; flooding coming through the stormwater system and over land; the potential effectiveness of check valves on North Beach; paving over manhole covers; transitioning from contractors to Page 3City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes City staff to monitor and inspect paving projects; acquiring fill dirt generated from the new Harbor Bridge project for use on North Beach; using soil excavated from the construction of the navigable channel on North Beach; differences in soils; the costs of drainage and elevation on North Beach as set out in Urban Engineering's study; the return on investment for North Beach projects; the percentage of flooding to be resolved on North Beach with construction of the navigable channel; the City's responsibility to resolve North Beach drainage issues; a history of platting of North Beach; sea level increases over the years; wastewater work to date and recently on North Beach; reducing infiltration; increasing the volume of drainage on North Beach; the City providing fill material for private property owners to elevate their properties; costs, funding and who is paying for what; how Option 2, consisting of an open ditch, would function and its cost; the cost of cutting a navigable channel to the bay; inclusion of a breakwater; total cost to the City of North Beach improvements; the Council viewed a brief video from the North Beach Community Association related to flooding on North Beach at high tide at Seagull and Gulfspray; permitting; functionality of the existing stormwater system on North Beach; whether the TIRZ#4 addresses drainage; and a request from a council member to explore check valves on stormwater drainage outfalls on North Beach. MINUTES:H. 3.Regular Meetings of September 24, 2019 and October 15, 2019 and Special Meeting of October 1, 2019. Mayor McComb referred to Item 3. A motion was made by Council Member Paulette Guajardo, seconded by Council Member Greg Smith, that the Minutes be passed. The motion carried by a unanimous vote. BOARD & COMMITTEE APPOINTMENTS:I. 4.Sister City Committee (3 vacancies) This item will not be considered. Board and Committee Appointments were withdrawn. EXECUTIVE SESSION: (ITEM 33)Q. Mayor McComb deviated from the agenda and referred to Executive Session Item 33. The Council went into executive session at 2:33 p.m. The Council returned from executive session at 3:11 p.m. 33.Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning litigation including, but not limited to, the case of Graham Construction Services, Inc. et al v. City of Corpus Christi et al, including potential consideration of settlement offers and/or fees for attorneys, engineers, and other expert witnesses assisting in Page 4City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes defense of action(s) and updates on litigation in other cases. The Council considered the following motion: Motion to authorize the execution of amendments, agreements and encumbrance of funds for legal, engineering, and other professional consulting and expert witness services and associated court reporter, copy, travel, data, and other costs for the lawsuit of Graham Construction Services, Inc. v. City of Corpus Christi, Xylem Water Solutions and Atlas Copco Compressors v. Carollo Engineers, PC, Travelers Casualty and Surety Company, Control Panels USA, Inc. and Fluid Components International LLC in a total added amount not to exceed $1,250,000 with the law firms of Kilpatrick Townsend & Stockton, LLP, Hartline Barger, LLP, and the consulting/engineering/expert firms of Ankura Consulting Group, Enprotec, WJE and FTI and authorize carry-over of unexpended funds into the following fiscal years. Council Member Molina made a motion to approve the motion, seconded by Council Member Garza. This Motion 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: M2019-184 RECESS FOR LUNCHL. The recess for lunch was held during Executive Session Item 33. PUBLIC HEARINGS: (ITEM 21) 21.Ordinance pertaining to North Beach designating a 1,423 acre area within the jurisdiction of the City of Corpus Christi Tax Increment Reinvestment Zone (TIRZ) Number 4; setting a maximum City financial participation of $20,000,000 via a scaled contribution for a period not to exceed 20 years; establishing a Board of Directors for the TIRZ; and, establishing a preliminary Project and Financing Plan. Mayor McComb deviated from the agenda and referred to Item 21. City Manager Peter Zanoni discussed the following topics: that $32 million is estimated to be generated through a Tax Increment Reinvestment Zone Number 4 (TIRZ#4) over a 20-year period; Del Mar College's participation in TIRZ#4; and the composition and number of individuals on the TIRZ#4's board of directors. Business Liaison Arlene Medrano presented information on the following topics: the process for creation of a TIRZ; proposed TIRZ#4 boundary; details of the proposed TIRZ#4 on North Beach; revenue projections; city participation; TIRZ#4 and General Fund revenue; summary of projects #1 - #6; summary of projects #7 - #12; revisions since City/County Joint Workshop Session; #6 North Beach parking structure initiative alternative; details of #6 North Beach parking Page 5City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes structure initiative; #7 project-specific development agreement; TIRZ board composition; staff recommendation; and timeline. Mayor McComb opened the public hearing. The following individuals spoke in support of TIRZ#4: Ted Mandel, 15036 Key Largo Court; Peter Davidson, 1525 N. Shoreline Blvd.; Irma Caballero, 4966 Oakmont Dr.; Chad Magill, 641 Texas Ave.; Jeff Blackard, 401 Adriatic Parkway, McKinney, Texas; and Steve Goody, 6638 Sahara. Margareta Fratila, 3606 Tripoli Dr., spoke regarding repairing infrastructure first on North Beach. Mayor McComb closed the public hearing. Council members, City Manager Zanoni and Business Liaison Medrano discussed the following topics: a timeline; investing 100% versus 75% in the last ten years of the TIRZ#4 and a policy addressing the percentage of City participation for all TIRZs; encouraging Del Mar College to participate in the TIRZ#4; Council support for the TIRZ#4; who has ownership of the parking spaces in project #6; the cost per parking space; closing off parking spaces; subsidy elements in the financing plan; the effect on the value of properties if streets are raised; the need for public improvements on North Beach; limitations of the current financing plan; not specifying dollars for each project in the financing plan; ensuring there is an emphasis on public improvements on North Beach; and flexibility allowed in the financing plan to fund projects. Council Member Roy made a motion to approve the ordinance, seconded by Council Member Guajardo. A council member, City Manager Zanoni and Business Liaison Medrano discussed the following topics: approving a TIRZ with a change in the financing plan; the restrictiveness of too much money being dedicated to infrastructure; making changes to the ordinance before second reading; consolidating the 12 project areas into 3 categories; not locking money in today for five years down the road; that any developer can apply for reimbursement through the TIRZ; and projects that are and are not pay as you go. Council Member Roy made a motion to amend the motion to approve the ordinance to consolidate the 12 project areas into 3 categories, as follows, Incentives at $12 million, Maintenance at $1.5 million and Infrastructure at $17.5 million, seconded by Council Member Guajardo. Council members, City Manager Zanoni and Business Liaison Medrano discussed the following topics: that drainage and elevation are included in infrastructure in the incentives category; and 100% versus 75% participation in the last 10 years to the TIRZ. The motion to amend the ordinance was passed with the following vote: Mayor McComb and Council Members Guajardo, Hunter, Molina, Roy, Smith, Barrera and Garza voting Aye and Council Member Hernandez voting No. A council member, City Manager Zanoni and Business Liaison Medrano discussed the following topics: figures presented at the City/County Joint Workshop Session versus those presented today; that revenues should match expenditures in the TIRZ; and that reimbursements to developers are based on what the developer has paid in taxes. Page 6City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes Council Member Roy made a motion to approve the ordinance as amended, seconded by Council Member Guajardo. This Ordinance was passed on first reading as amended 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 Mayor McComb called for a recess. The Council went into recess at 4:30 p.m. The Council returned from recess at 4:44 p.m. EXPLANATION OF COUNCIL ACTION:J. CONSENT AGENDA: (ITEMS 5 - 20)K. Second Reading Ordinances - Consent Approval of the Consent Agenda Mayor McComb referred to the Consent Agenda. Council Member Smith stated that he was abstaining on Item 20. Council members requested that Items 16 and 17 be pulled for individual consideration. A motion was made by Council Member Garza, seconded by Council Member Molina, to approve Consent Agenda Items 5 -15 and 18 - 19. The motion carried by the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Molina, Council Member Roy and Council Member Smith 8 - Absent:Council Member Hunter1 - Abstained:0 5.Case No. 0819-04, Mirabal Development Group, LC (District 5). Ordinance rezoning property at or near 6805 Sandra Lane from the "RS-6" Single-Family 6 District to the “RM-1” Multifamily 1 District. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031906 6.Ordinance authorizing acceptance of a grant in the amount of $48,889.40 grant from the State of Texas, Criminal Justice Division for Violence Against Women (VAWA) Program with a cash match of $17,808.91 and in-kind match of $2,160; Page 7City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes appropriating $48,889.40 in the Police Grants Fund; and authorizing a transfer of $17,808.91 from the General Fund to the Police Grants Fund. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031907 7.Ordinance authorizing the acceptance of a grant in the amount of $40,000 from the Office of the Governor’s Homeland Security Grants Division for FY2020 Local Border Security Program; and appropriating $40,000 in Police Grants Fund. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031908 8.Ordinance approving the purchase of ten replacement trailers not to exceed $153,963.00 to be used daily by the Utilities Department to transport heavy equipment to worksites from H & V Equipment Service, Inc. via the Buy Board Cooperative; appropriating $59,180.20 from the unreserved fund balance in the Water Fund, $70,969.00 from the unreserved fund balance in the Wastewater Fund and $23,813.80 from the unreserved fund balance in the Storm Water Fund; and amending the FY 2019-2020 operating budget to increase expenditures. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031909 9.Ordinance approving the purchase of four 2019 Ford F-150 regular cab pick-up trucks in an amount not to exceed $110,837.00 to be used by Construction Inspectors in Engineering Services from Silsbee Ford of Silsbee, Texas via the GoodBuy Purchasing Cooperative; appropriating $110,837.00 from the unreserved fund balance in the Engineering Services; and amending the FY 2019-2020 operating budget to increase expenditures. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031910 Contracts and Procurement - Consent 10.Resolution authorizing execution of an Interlocal Cooperation Agreement with the Corpus Christi Downtown Management District for the maintenance of 104 planters in the downtown area for an initial period of four years. This Resolution was passed on the consent agenda. Enactment No: 031911 Page 8City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes 11.Motion authorizing a three year Office Lease Extension Agreement with Corpus WCEC, LLC of Dallas, Texas for lease of North Suite No 113 A in Wilson Plaza (5,503 square feet) for the operation of the City Detention Center for an amount not to exceed $275,865.48, with first-year funding in the amount of $91,955.16 available in the General Fund, beginning in Fiscal Year 2020. This Motion was passed on the consent agenda. Enactment No: M2019-175 12.Motion authorizing Amendment No. 1 to Supply Agreement No. 1261 with Chemtrade Chemicals US, LLC, of Parsippany, New Jersey, for an amount not to exceed $97,500.00 for the 24-month term, increasing the 24-month contract amount from $701,882.00 to $799,382.00, allowing a price increase to the contract for the purchase of liquid ammonium sulfate solution used as a source of ammonia in the formation of chloramines to disinfect the treated water at O. N. Stevens Water Treatment Plant. Funding is available through the Water Fund. This Motion was passed on the consent agenda. Enactment No: M2019-176 Capital Projects - Consent 13.Motion awarding a contract to Bath Engineering for design and preparation of construction documents to implement Mechanical, Electrical and Plumbing (MEP) upgrades for the Police Headquarters building in the amount of $143,115, located in City Council District 1, effective upon issuance of notice to proceed, with funding approved and available from Bond 2018, Proposition E, Public Health & Safety. This Motion was passed on the consent agenda. Enactment No: M2019-177 14.Motion awarding a contract to Clark Pipeline Services, LLC for reconstruction of Frio, Hacala, and Dorado Street Corridor from Greenwood Drive to Martin Street with new asphalt pavement and underground utility improvements in the amount of $4,476,609.27. This project is located in City Council District 3, the contract will be effective upon issuance of notice to proceed, and funding is available from Bond 2018 Proposition A, Bond 2016 Streets, and the Utility Capital Improvement Program. This Motion was passed on the consent agenda. Enactment No: M2019-178 Page 9City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes 15.Motion awarding a contract to Hanson Professional Services Inc., for preparation of bid documents, street rebuild design, and delivery orders for the $32.55 Million Residential Street Rebuild Program in the amount of $3,389,252.89, located in all City Council districts, effective upon issuance of notice to proceed, with funding available from Bond 2018, Proposition A, Residential Street Construction Fund, and Utility Capital Program. This Motion was passed on the consent agenda. Enactment No: M2019-179 18.Motion awarding a contract to SCS Engineers of Bedford, Texas for design of Cefé Valenzuela Gas Collection Control System (GCCS) expansion of Cells 1B, 1C and 3C in the amount of $163,500, effective upon issuance of notice to proceed, with funding approved and available from budgeted Solid Waste Capital Improvement Funds. This Motion was passed on the consent agenda. Enactment No: M2019-182 General Consent Items 19.Motion approving the 2019 Property Tax Levy of $135,974,569.95 based on the adopted property tax rate of $0.646264 per $100 valuation, in accordance with Section 26.09 (e) of the Texas Tax Code. This Motion was passed on the consent agenda. Enactment No: M2019-183 16.Motion awarding a contract to CPC Interests, LLC d/b/a Clark Pipeline Services, LLP, for construction improvements under the Citywide Water Distribution System Indefinite Delivery/Indefinite Quantity (IDIQ) Program, in the amount up to $5,000,000 plus two (2) optional administrative renewals for a total contract price up to $15,000,000 for Citywide improvements, and is effective upon issuance of notice to proceed, with funding available from the Water Capital Improvement Program. Mayor McComb referred to Item 16. Council members and Capital Budget Manager Kamil Taras discussed the following topics: project numbers; referencing project numbers in the Capital Improvement Program; that funding is from the Indefinite Delivery Indefinite Quantity (IDIQ) program; and a request for regular updates regarding the progress of projects. Council Member Garza made a motion to approve the motion, seconded by Council Member Smith. This Motion was passed and approved with the following vote: Page 10City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Roy and Council Member Smith 8 - Absent:Council Member Molina1 - Abstained:0 Enactment No: M2019-180 17.Motion authorizing a contract with J.S. Haren Company of Athens, Tennessee for the Whitecap Wastewater Treatment Plant (WWTP) Emissions/Odor Control and Bulkhead Rehabilitation project in the amount of $1,916,000, to rehabilitate the emission/odor control system and repair the bulkhead. The project is located in City Council District No. 4. The contract will proceed upon the issuance of a notice to proceed and funding is approved and available through the Wastewater Capital Improvement Program (CIP) Budget. Mayor McComb referred to Item 17. A council member, City Manager Peter Zanoni and Director of Contracts and Procurement Kim Baker discussed the following topics: the project number; and the reason the Contracts and Procurement Department was left off the agenda memo. Council Member Smith made a motion to approve the motion, seconded by Council Member Garza. This Motion 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 Roy and Council Member Smith 8 - Absent:Council Member Molina1 - Abstained:0 Enactment No: M2019-181 20.Resolution nominating Valero Refining - Texas, L.P. to the Office of the Governor Economic Development & Tourism through the Economic Development Bank as an enterprise project pursuant to the Texas Enterprise Zone Act to encourage and to allow a rebate of State sales tax. Mayor McComb referred to Item 20. There were no comments from the Council or the public. Council Member Hernandez made a motion to approve the resolution, seconded by Council Member Hunter. This Resolution was passed and approved with the following vote: Page 11City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter and Council Member Roy 7 - Absent:Council Member Molina1 - Abstained:Council Member Smith1 - Enactment No: 031912 PUBLIC HEARINGS: (ITEM 22)M. 22.Ordinance closing, abandoning and vacating a 16,500 square foot portion of 6th Street, a portion of public street lying between Buford Avenue and Hancock Avenue, conditioned upon payment of $28,000 for fair market value of the improved street and execution of an agreement to relocate stormwater infrastructure. (District 1) Mayor McComb referred to Item 22. Assistant Director of Development Services Nina Nixon-Mendez stated that the purpose of this item is to allow for the development of an affordable apartment complex for senior citizens. Assistant Director Nixon-Mendez presented information on the following items: vicinity map; aerial overview; staff recommendation to approve with a floor amendment; area to which notices were mailed; and an explanation of the floor amendment being recommended. A council member and Assistant Director Nixon-Mendez discussed the following topics: additional on site parking to be provided and its location; and the cost per parking space. In response to a question from a council member, David Fournier, Fish Pond Development, stated that he does not have available a breakdown of the cost associated with parking spaces. Mayor McComb opened the public hearing. There were no comments from the public. Mayor McComb closed the public hearing. Council Member Hernandez made a motion to amend Section 2, b of the ordinance to read, "Execution of a Deferment Agreement with the City of Corpus Christi to relocate stormwater and water infrastructure within the public right of way to be abandoned and the posting of fiscal security to ensure relocation of said stormwater and water infrastructure.", seconded by Mayor McComb. A council member and Assistant Director Nixon-Mendez discussed deferment of construction of utilities until the site development phase. The motion to amend was passed unanimously (Council Member Garza - abstained). Council Member Hernandez made a motion to approve the ordinance as Page 12City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes amended, seconded by Council Member Molina. This Ordinance was passed on first reading as amended and approved with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 8 - Abstained:Council Member Garza1 - REGULAR AGENDA: (NONE)N. FIRST READING ORDINANCES: (ITEMS 23 - 32)O. 23.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. Requires 3/4 Vote for zoning change. Mayor McComb referred to Item 23. Mayor McComb asked if the applicant and residents in the area of the subject property are agreeable. In response to a council member's questions, Assistant Director Nixon-Mendez explained the difference between and RS-6 and RS-15 zoning designations; Council's ability to change the zoning designation; the number of dwellings per acre allowed in the RS-6 and RS-15 zoning designations; and that Flour Bluff Independent School District (FBISD) submitted a letter in support of RS-15. Mayor McComb called for comments from the public. Rebecca Root, 325 Lola Johnson Rd, stated that she did not receive notification that this item would be on today's agenda; and provided a history of the attempted changes of zoning on the subject property. Darson Aelvoet, 281 Lola Johnson Rd., stated that the property is wetlands; that the proposed development does not comply with the published goals and objectives of the area development plan; and that the developer has not reached out to residents of the area. Council members discussed the following topics: the reason this item is again before the Council; FBISD's reasons for initially opposing the change in zoning; that the area development plan calls for low density and RS-15 is considered low density; the potential for flooding due to RS-15; and the number of votes required to pass the ordinance. Council Member Barrera made a motion to approve the ordinance rezoning the property to the "RS-15" Single Family 15 District, seconded by Council Member Hunter. In response to a council members' questions, Assistant Director Nixon-Mendez discussed the number of homes allowed per acre in the RS-15 versus RS-6 zoning districts. In response to a question form Jenny Ashmore, Lola Johnson Rd., Assistant Page 13City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes Director Nixon-Mendez discussed the following topics: minimum acreage necessary for a septic system; and connecting to City sewer. Miguel Saldana, Saldana Consulting, stated that the developer will extend public sewer to the development and to the lift station at the end of Lola Johnson Rd.; and discussed the status of the lift station. In response to a question from Rebecca Root, 325 Lola Johnson Rd, Juan Perales, J. Perales Civil Engineering, said the wastewater line will be laid along the east boundary of Lola Johnson Rd. and down Laguna Shores Rd. or at the northern edge of the property and across an easement. This Ordinance was passed on first reading and approved with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Hernandez, Council Member Hunter, Council Member Molina and Council Member Roy 7 - Nay:Council Member Guajardo and Council Member Smith2 - Abstained:0 24.Ordinance authorizing acceptance of grant from U. S. Department of Justice, Bureau of Justice Assistance, in amount of $175,175 for FY 2019 Edward Byrne Memorial Justice Assistance Grant Program; and appropriating $175,175 in Police Grants Fund with $80,917 of funds distributed to Nueces County and $13,340 of funds distributed to City of Robstown. The remaining funds of $80,918 will be used by the City for enhancement of law enforcement efforts. Mayor McComb referred to Item 24. There were no comments from the Council or the public. Council Member Hunter made a motion to approve the ordinance, seconded by Council Member Smith. 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 25.Ordinance approving the purchase of Harris Public Safety communication radios in an amount not to exceed $3,567,032.20 to be used by the Corpus Christi Police Department from Dailey and Wells Communications, Inc; appropriating $1,189,010.73, from the unreserved fund balance of the General Fund initially budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. Mayor McComb referred to Item 25 - 32. City Secretary Rebecca L. Huerta announced that Council Member Barrera was abastaining on Item 32. A council member asked that Item 27 be pulled for individual consideration. City Page 14City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes Manager Peter Zanoni announced that Item 29 was being withdrawn. Council Member Smith made a motion to approve Items 25, 26, 28, 30 and 31, seconded by Council Member Molina. These Ordinances were passed on first reading and approved by one 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 26.Ordinance authorizing an agreement with Texas Food and Wine Festival, LLC to allow use of Heritage Park and portions of Fitzgerald Street and Hughes Street for the Corpus Christi Food and Wine Festival Event and related activities on November 23, 2019. This Ordinance was passed on first reading and approved by one vote (see Item 25). 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 28.Ordinance accepting $31,105.92 from Epic Y Grade Pipeline, LP and authorizing an amendment to the existing Revocable Easement to allow construction of an additional 12-inch pipeline. This Ordinance was passed on first reading and approved by one vote (see Item 25). 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 29.Ordinance accepting $103,770 from Dean Pipeline Company, LLC and authorizing conveyance of three Revocable Easements with Temporary Construction Easements on City-owned properties, to allow construction of one 8-inch pipeline. This Item was withdrawn by staff. 30.Ordinance approving the purchase of twenty-six pickup trucks for a total amount not to exceed $951,159.04 from Silsbee Ford of Silsbee, Texas via the GoodBuy Purchasing Cooperative to be used by the Utilities Department’s staff for daily operations; appropriating $951,159.04 from the unreserved fund balance in the Water Fund, the Wastewater Fund, and the Storm Water Fund that was previously budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. Page 15City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes This Ordinance was passed on first reading and approved by one vote (see Item 25). 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 31.Ordinance appropriating anticipated revenues from the Texas Department of Transportation (TxDOT) in the amount of $635,549 and awarding a contract to Mako Contracting, LLC. for construction of sidewalk and lighting improvements for the S.E.A. District Pedestrian Improvement project in the amount of $794,436.22. The project is located in City Council District 1 and the contract will begin upon issuance of notice to proceed. Funding is approved and available from an 80% TxDOT grant and a 20% match from Street Bond 2016 CIP. This Ordinance was passed on first reading and approved by one vote (see Item 25). 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 32.Ordinance authorizing the execution of the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District, subject to release of all claims by Beeville Water Supply District and City of Beeville against the City of Corpus Christi and subject to withdrawal of all administrative proceedings filed by Beeville Water Supply District and City of Beeville against the City of Corpus Christi in the Public Utility Commission of Texas and subject to payment of all amounts determined by the City Manager to be owed pursuant to the existing contract between the parties after waiver of $162,809.85 of Future Water Resources Reserve Fund charges that were contested and withheld by said District and authorizing the City Manager to make the aforesaid waiver. Mayor McComb deviated from the agenda and referred to Item 32. There were no comments from the Council or the public. Council Member Smith made a motion to approve the ordinance, seconded by Council Member Hunter. This Ordinance was passed on first reading and approved with the following vote: Aye:Mayor McComb, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 8 - Abstained:Council Member Barrera1 - Page 16City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes 27.Ordinance authorizing a 20-year Lease Agreement with Art Community Center of Corpus Christi, Inc. a Texas nonprofit corporation, for continued use and operation of the Art Community Center at no charge, located at 100 N. Shoreline Blvd. for use by local and visiting artists, to provide meeting rooms, art exhibits, an information center, a gift shop, a restaurant, display areas for the arts, and art classes. Mayor McComb deviated from the agenda and referred to Item 27. Assistant to the Director of Parks and Recreation Esther Velazquez stated that the purpose of this Item is to authorize a 20-year lease with the Art Community Center of Corpus Christi, Inc. for the use of the Arts Center at 100 N. Shoreline Blvd. Council members, Assistant to the Director of Parks and Recreation Velazquez and City Attorney Miles K. Risley discussed the following topics: sub-lease provisions in the lease addressing use of a portion of the facility as a restaurant; concern regarding sub-leasing of space; and thanks to the Art Community Center of Corpus Christi, Inc. for the work they do. Council Member Guajardo 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 BRIEFINGS: (NONE)P. EXECUTIVE SESSION: (ITEM 34)Q. Mayor McComb referred to Executive Session Item 34. The Council went into executive session at 5:29 p.m. The Council returned from executive session at 5:57 p.m. 34.Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to sanitary sewer overflows and the City’s sanitary sewer system, water system, and/or drainage system and/or potential future litigation involving the U.S. Environmental Protection Agency, State of Texas, and/or U.S. Department of Justice. This E-Session Item was discussed in executive session. IDENTIFY COUNCIL FUTURE AGENDA ITEMSR. Mayor McComb referred to Identify Council Future Agenda Items. No items Page 17City of Corpus Christi Printed on 11/5/2019 October 29, 2019City Council Meeting Minutes were discussed or identified. ADJOURNMENTS. The meeting was adjourned at 5:57 p.m. Page 18City of Corpus Christi Printed on 11/5/2019 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com City of Corpus Christi Meeting Minutes City Council Workshop Session 8:30 AM 1901 N. Shoreline Blvd. American Bank Center, Selena Rotunda Thursday, October 24, 2019 JOINT CITY COUNCIL AND NUECES COUNTY WORKSHOP Mayor Joe McComb to call the meeting to order.A. Mayor McComb called the meeting to order at 8:34 a.m. Assistant City Secretary Paul Pierce to call the roll of the required Charter Officers. B. Assistant City Secretary Paul Pierce 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 Assistant City Secretary Paul Pierce. Council Member Roland Barrera arrived at 8:36 a.m. 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 - BRIEFINGS TO CITY COUNCIL:C. 1.Joint City Council and Nueces County Workshop on Proposed North Beach Tax Increment Reinvestment Zone Preliminary Project Plan City Attorney Miles K. Risley stated that, pursuant to the Texas Open Meeting Act, because public comment is required before an item including a motion of direction, can be considered and because no public comment will be solicited during this workshop session, an item, including a motion of direction, cannot be considered. City Manager Peter Zanoni discussed the following: project plan for the North Beach TIRZ #4; $32 million in anticipated tax revenue with over a 20 year commitment; the City's participation being $20 million and Nueces County's participation being $12 million; the status of Del Mar College's participation in TIRZ #4; historical and future TIRZ #4 implementation timeline, scheduled date for the first reading and a drainage solution presentation is October 29, 2019 and the second reading and potenial adoptions on November 12, 2019; the proposed TIRZ #4 consist of no up front cost; that its a reinbursement Page 1City of Corpus Christi Printed on 10/31/2019 October 24, 2019City Council Workshop Session Meeting Minutes mechanism and the cost of drainage upgrades on North Beach. Business Liaison Arlene Medrano presented information on the following topics: Process for Creation of TIRZ; Implementation of Project Plan; Proposed TIRZ #4 Boundary; Current Land Use; Future land Use; Development Plan with New Harbor Bridge Alignment; #1 Wayfinding Infrastructure; #2 Park Improvements; #3 Demolition of Blighted Structures; #4 Public Safety; #5 North Beach Public Space Beautification & Revitalization Programs & Services; #6 North Beach Parking Structure Initiative; details of the North Beach Parking Structure Initiative; #6 North Beach Parking Structure Initiative Alternative; #7 Project-Specific Development Agreement; #7 Project-Specific Development Agreement in TIRZ #3 Downtown; #8 North Beach Property Improvement Program; #9 North Beach Living Initiative; #10 Residential Streets; #11 Administrative Cost: Creation and Administration; and Potential New Project; Drainage. County commissioners, council members and staff discussed the following topics related to a TIRZ#4: administrative costs; monies spent to date by the City; future administrative costs; providing the TIRZ#4 board, once it’s created, with an itemized expense report; that outside entities would be reimbursed by TIRZ#4 via approved agreements; what monies spent to date by the City consist of; what staff time consists of; that the allocation to each TIRZ is set out in the City’s annual budget; that the Nueces County Commissioners support creation of TIRZ#4 via a 5-0 vote; the concept of using a TIRZ as an economic development tool; the types of projects that could be funded by a TIRZ#4; an opportunity zone and associated funds; including opportunity zone language in proposed TIRZ#4’s project #7; the importance of certainty of language related to investment in North Beach; that this presentation is a preliminary draft; that North Beach used to be in City Council District 2, but is now in City Council District 1; past North Beach projects; concerns regarding drainage on North Beach and reimbursement of the City’s indirect costs related to TIRZ#4; the County’s indirect costs to date; parking and concerns related to drainage and associated costs; the potential for flooding as a result of new development on North Beach; the County needing a master drainage plan; the insufficiency of monies in TIRZ#4 to fund drainage solutions on North Beach; how the “by right” concept influences potential investors; the definition of “by right”; that the TIRZ#4 will be a mechanism by which a developer is reimbursed taxes paid in by developer(s); reimbursing developers from their specific development project versus from a pool funded by multiple developers; incentivizing parking structures; that no monies are advanced to developers, instead developers are only reimbursed from ad valorem taxes they have paid to the City; the project plan approval process; costs associated with drainage options that are part of Urban Engineering’s upcoming report on drainage solutions for North Beach; the composition of the TIRZ#4’s board of directors and how many board members each participating entity may appoint, as defined by statute; projected economic growth on North Beach; cooperation between the City and the County; the history of a TIRZ being proposed for North Beach; that the drainage issues on North Beach are a safety issue; how the estimated costs of proposed project #s 1-5 were calculated; who can apply for funding/reimbursement through the proposed TIRZ#4; the process of appointing individuals to serve on a TIRZ#4’s board of directors; the cost of wayfinding; the total cost of all proposed projects exceeding $32 million; that which projects are funded will be up to the TIRZ#4’s board of directors; that no projects were funded in the first five years of TIRZ#3; City monies committed to Page 2City of Corpus Christi Printed on 10/31/2019 October 24, 2019City Council Workshop Session Meeting Minutes infrastructure improvements on North Beach that are in addition to monies that are to be collected via TIRZ#4; state and federal approval of the proposed boundary of TIRZ#4; the need for an opportunity zone overlay on North Beach; submerged lands within TIRZ#4’s proposed boundary; the boundary of the current opportunity zone; if bathhouse improvements would constitute park improvements or beautification; that once North Beach is developed, it will be a big draw for the community; the timeline on communication thus far with Del Mar College; Del Mar College needing to establish a policy regarding participation in the proposed TIRZ#4; North Beach’s historical developability; improving road heights and elevating structures on North Beach; the impact of the proximity of refineries and the Port of Corpus Christi to North Beach and its potential impact on economic development; how future property values presented for North Beach were estimated; developable areas of North Beach; TIRZ#4 monies to be dedicated to general public improvements; relocating the entrance to North Beach due to construction of the new Harbor Bridge; considering an end date for the City’s TIRZs; the need for certainty related to tax dollars being available through a TIRZ#4 to reimburse North Beach developers; that an increment of taxes collected will be reimbursed to developers, not all taxes collected; and next steps. ADJOURNMENTD. The meeting was adjourned at 10:36 a.m. Page 3City of Corpus Christi Printed on 10/31/2019 Duties Composition Name District Term Appt. date End date Appointing AuthorityPosition Status Category Chuck Anastos District 2 3 5/14/2013 5/4/2019 City Council Met the six-year service limitation Architect Randy Farrar District 5 3 9/11/2012 5/4/2019 City Council Met the six-year service limitation Building Industry Hilary R Davis District 2 1 6/18/2019 5/4/2020 City Council Active Not Conn W/Bldg. Ind. Robert Knowles P.E.District 4 3 2/10/2015 5/4/2020 City Council Active Engineer Ramiro Munoz III District 5 3 2/10/2015 5/4/2020 City Council Chair Active Building Industry Garry M Camp District 5 3 5/5/2019 5/4/2021 City Council Vice-Chair Active General Contractor Pete G. Cavazos District 2 1 6/18/2019 5/4/2021 City Council Active Building Industry Seven (7) members appointed by the City Council for two-year staggered terms. It must include an architect, a general contractor, an engineer, three (3) members at-large from the building industry, and one member not connected with the building industry. Quorum shall require four (4) members. The Board shall elect a chairman and vice chairman during the first meeting of each calendar year. The Building Code Board of Appeals (BCBOA) shall have the power to hear individual appeals of decisions and interpretations of the building official on rulings and alternate materials and methods of construction and, consider individual variances of the City Building Code, Existing Building Code, Residential Construction Code, Flood Hazard Prevention Code, and Energy Conservation Code. Furthermore, the BCBOA shall have the power, after having obtained public comment, to recommend to the City Council changes to the City Building Code, Existing Building Code, Residential Construction Code, Flood Hazard Prevention Code, and Energy Conservation Code. *Two (2) vacancies with terms to 5-4-21, representing the following categories: 1 - Architect, and 1 - Building Industry. BUILDING CODE BOARD OF APPEALS 11-12-19 Name District Category Gary K Adams District 4 Architect Kira Bonesteel District 5 Architect David Foster District 5 Building Industry and General Contractor Rogelio Hernandez District 5 Architect BUILDING CODE BOARD OF APPEALS Applicants Duties Composition Name District Term Appt. date End date Appointing AuthorityPosition Status Category *Krista C Ramirez, RN BSN District 4 Partial 2/12/2019 11/11/2019 City Council Exceeded the number of absences allowed by ordinance City Ryan Hanisch District 2 Partial 6/18/2019 11/11/2020 City Council Active City Raymond Martin Johnson District 1 1 9/20/2016 11/11/2020 City Council Active City Elizabeth Sefcik District 2 3 11/8/2011 11/11/2020 City Council President Active City Claudia Raybuck District 2 1 6/18/2019 11/11/2021 City Council Active City Aislynn E. Campbell District 1 1 2/21/2017 11/11/2020 City Council and Nueces County Active Joint Sandra Heatherley 4 6/16/2010 6/30/2019 Nueces County Active County Eva N. Brown 1 9/1/2017 6/30/2019 Nueces County Resigned County David Nuss District 2 1 9/1/2017 6/30/2019 Nueces County Resigned County Tony Diaz 12 11/11/1978 6/30/2022 Nueces County Vice-President Active County Belinda Flores 4 8/20/2012 6/30/2022 Nueces County Active County CITIZENS ADVISORY HEALTH BOARD *One (1) vacancy with term to 11-11-22, representing the following category: 1 - City. The Citizens Advisory Health Board studies and assists in health and human service operations, services and programs, and makes recommendations to the City and County through the Director of Health and Human Services. Eleven (11) members, five (5) members appointed by the City Council for three-year terms, five (5) by the Nueces County Commissioner's Court for two-year terms; and one member appointed jointly by the City and the County. The board elects its own President and Vice-President. The City Manager and Nueces County Judge will meet to make a recommendation to both entities on the Joint appointment. 11-12-19 Name District Category Telisha Bernal District 4 City Tosha James District 4 City Jonathan S Nabours District 2 City Kelsey Schoenbacher District 5 City CITIZENS ADVISORY HEALTH BOARD Applicants Duties Composition Name District Term Appt. date End date Appointing Authority Position Status Category *E. Brent Bottom District 4 Partial 4/10/2018 9/30/2020 City Council Exceeded the number of absences allowed by ordinance Agent, Employee or Tenant *Ajit David District 4 1 9/22/2015 9/30/2022 City Council Exceeded the number of absences allowed by ordinance Agent, Employee or Tenant Cherylyn M Boyd District 1 2 12/8/2015 9/30/2020 City Council Active Property Owner Raymond Gignac District 4 4 8/21/2001 9/30/2020 City Council Active Property Owner Steve Keenan District 5 1 9/27/2016 9/30/2020 City Council Active Agent, Employee or Tenant Janet Maxwell District 4 1 12/18/2012 9/30/2020 City Council Active Stock Owner Cheryl A Votzmeyer District 1 Partial 4/9/2019 9/30/2020 City Council Active Property Owner Lexi Buquet District 1 Partial 12/8/2015 9/30/2022 City Council Active Resident Eric R Gutschow District 5 1 9/12/2017 9/30/2022 City Council Active Property Owner Casey Lain District 2 3 6/8/2010 9/30/2022 City Council Active Property Owner Brad Lomax District 4 2 8/12/2014 9/30/2022 City Council Active Property Owner Dee Dee Perez District 5 3 6/8/2010 9/30/2022 City Council Active Agent, Employee or Tenant Glenn R. Peterson District 4 3 6/8/2010 9/30/2022 City Council Active Property Owner Harold Shockley Jr.District 5 2 5/8/2012 9/30/2022 City Council Chair Active Agent, Employee or Tenant Caitlin Shook District 4 Partial 4/10/2018 9/30/2022 City Council Active Agent, Employee or Tenant *Two (2) vacancies with terms to 9-30-20 and 9-30-22, representing the following categories: 2 - Agent, Employee or Tenant. (Note: Per the Texas Local Government Code, succeeding directors are chosen through the recommendation of the board and the approval of the City Council. The Corpus Christi Downtown Management District is recommending Lesley Lomax and Josh Richline.) The district is composed of at least nine, but not more than thirty directors, serving four-year staggered terms. Directors must represent one of the following categories: a resident of the district; an owner of property in the district; an owner of stock, whether beneficial or otherwise, of a corporate owner of property in the district; an owner of a beneficial interest in a trust that owns property in the district; or an agent, employee or tenant of one of the above. Per the Texas Local Government Code, succeeding directors are chosen through the recommendation of the board and the approval of the City Council. The Corpus Christi Downtown Management District provides maintenance, security, marketing, and the promotion and improvement of property and facilities within the district; the district has the authority to levy taxes or assessments for improvements in the downtown area. CORPUS CHRISTI DOWNTOWN MANAGEMENT DISTRICT 11-12-19 Name District Category Lesley B. Lomax District 4 Agent, Employee or Tenant, and Property Owner Joshua Richline District 2 Agent, Employee or Tenant, and Property Owner Suzelle M Tinnell District 4 Agent, Employee or Tenant, and Stock Owner CORPUS CHRISTI DOWNTOWN MANAGEMENT DISTRICT Applicants Duties Composition Name District Term Appt. date End date Appointing Authority Position Status Category Attendance *Dr. Ira J Freeman AIA District 4 1 2/14/2017 11/20/2019 City Council Seeking reappointment Architect 6/8 meetings 75% (2 absences) *Lisa A. Garza District 3 1 2/14/2017 11/20/2019 City Council Exceeded the number of absences allowed by ordinance Regular Member *Vacant 1 11/21/2018 11/20/2021 City Council Vacant Real Estate Jillian Becquet District 5 2 3/24/2015 11/20/2020 City Council Chair Active Historian Dr. Bryan E. Stone District 5 1 7/17/2018 11/20/2020 City Council Active Regular Member Craig Thompson District 2 2 9/9/2014 11/20/2020 City Council Active Engineer Bert Rucker Jr.District 4 2 9/9/2014 11/20/2020 City Council Active Regular Member Kathleen de la Garza District 2 1 7/17/2018 11/20/2020 City Council Active Regular Member Monica Rawlings District 5 1 2/12/2019 11/20/2021 City Council Active Title Search Dr. Christine Reiser Robbins District 4 2 5/10/2016 11/20/2021 City Council Active Historian Randy J. Dees Sr.District 2 2 4/19/2016 11/20/2021 City Council Active Regular Member Eleven (11) members nominated by individual City Council Members and appointed by a majority vote of the Council. Insofar as possible, the numerical composition shall correspond to the ethnic, gender, and economic distribution of the City according to the last Federal Census report. All members shall have knowledge and experience in either the architectural, archaeological, cultural, social, economic, ethnic or political history of Corpus Christi. Representation of the following competencies shall be appointed as members to the commission: Two (2) historians, one (1) licensed real estate salesperson, (1) registered architect, one (1) structural or civil engineer, one (1) person knowledgeable in title search and/or property surveyor and five (5) other members. No one profession will constitute a majority of the membership. All terms for three years. The Landmark Commission promotes the use of historical and cultural landmarks for the culture, prosperity, education, and general welfare of the people of the City and visitors to the City. *Three (3) vacancies with terms to 11-20-21 and 11-20-22, representing the following categories: 1 - Regular Member, 1 - Architect and 1 - Real Estate. (Note: Staff is recommending the postponement of Real Estate and Regular Member for further recruitment). LANDMARK COMMISSION 11-12-19 Duties: Composition Name Term Appt. date End date Appointing Authority Position Status Category *Roland Barrera 1 1/15/2019 11/1/2019 City Council Active City *Rudy Garza 3 8/27/2013 11/1/2019 City Council Active City *Paulette Guajardo 1 12/20/2016 11/1/2019 City Council Active City *Gil Hernandez 1 1/15/2019 11/1/2019 City Council Active City *Michael T. Hunter 1 4/12/2016 11/1/2019 City Council Active City *Joe McComb 1 12/20/2016 11/1/2019 City Council Active City *Ben Molina 1 12/20/2016 11/1/2019 City Council Active City *Everett Roy 1 5/8/2018 11/1/2019 City Council Active City *Greg Smith 1 12/20/2016 11/1/2019 City Council Chair Active City Barbara Canales 1 11/2/2018 11/1/2020 Nueces County Active Nueces Co. Gabriel Rivas 3 11/2/2018 11/1/2020 City Council Active Del Mar College Sylvia A Tryon Oliver 1 11/18/2014 11/1/2020 Nueces County Hospital District Active Nueces County Hospital District REINVESTMENT ZONE NO. 2 BOARD *Nine (9) vacancies with the term to 11/01/2021 appointed by the City Council. Appointment of Chairman for a term of one-year beginning 01/01/2020. (Historically, Council Members have been appointed to the board.) The Reinvestment Zone No. 2 Board shall make recommendations to the City Council concerning the administration of the zone. The Board shall prepare and adopt a project plan and reinvestment zone financing plan for the zone and submit such plans to the City Council for its approval in accordance with Section 311.011, Texas Tax Code. The Board shall exercise other powers and responsibilities with respect to the zone only to the extent expressly granted by the City Council by ordinance or resolution. The Board shall consist of at least five and not more than fifteen (15) members. The members shall be appointed as follows: Pursuant to Sec. 311.009(a), Tax Code, the respective governing bodies of each taxing unit other than the City each may appoint one (1) member of the board. A taxing unit may waive its right to appoint a Director. The remaining members of the board are appointed by the City Council. The City Council shall have the right to appoint up to ten (10) members, and the board shall exceed fifteen (15) members if necessary for the City Council to make said ten (10) appointments. To be eligible for appointment an individual must be a qualified voter of the City or be at least 18 years of age or older and own real property in the zone. Each year the governing body of the municipality or county that created the zone shall appoint one member of the board to serve as Chairman for a term of one-year that begins on January 1 of the following year. The Board of Directors may elect a Vice-Chairman to preside in the absence of the Chairman or when there is a vacancy in the office of the Chairman. The board may elect other officers as it considers appropriate. 11-12-19 DATE:October 3, 2019 TO:Peter Zanoni, City Manager FROM:Al Raymond, Director, Development Services AlRaymond@cctexas.com (361) 826-3575 CAPTION: Ordinance closing, abandoning and vacating a 16,500 square foot portion of 6th Street, a portion of public street lying between Buford Avenue and Hancock Avenue, conditioned upon payment of $28,000 for fair market value of the improved street and execution of an agreement to relocate stormwater infrastructure. (District 1) SUMMARY: The purpose of this ordinance is to close, abandon and vacate a 16,500 square foot portion of a 60-foot-wide public street adjoining Block 5, Bay Terrace, recorded in Volume A, Page 23, Deed and Map Records of Nueces County, Texas, and requiring petitioner, Fish Pond Development, LLC, to comply with specified conditions.The purpose of the street closure is to allow the applicant who owns the properties on both sides of the street to build a Section 8 Senior living apartment complex. BACKGROUND AND FINDINGS: Fish Pond Development, LLC is requesting the closure, vacation, and abandonment of a 16,500 square foot portion of a 60-foot-wide public street adjoining Block 5, Bay Terrace, recorded in Volume A, Page 23, Deed and Map Records of Nueces County, Texas, identified as 6th Street located between Buford Avenue and Hancock Avenue. The applicant owns the properties on both sides of 6th street between Buford Avenue and Hancock Avenue and plans to build a Section 8 Senior living apartment complex with 112 one-bedroom apartment homes. The nearest RTA bus stop is at the intersection of Buford Avenue and Staples Street and vehicle traffic can travel around the closed street by utilizing 7 th Street to the west or Santa Fe Street to the east. All streets around 6th Street accommodate two way traffic and the projected traffic impact is expected to be less than 44 trips per hour, during peak travel hours, from the new apartment complex. 6 th Street is a local street and a rezoning of the property from RM-3 to a PUD district was recommended for approval by Planning Commission on September 18, 2019 and the PUD plat for the property is scheduled for Planning Commission on October 30, 2019. City Council will consider the zoning Street closure of 6th Street between Buford Avenue and Hancock Avenue AGENDA MEMORANDUM Public Hearing and First Reading Ordinance for October 29, 2019 Second Reading Ordinance for November 12, 2019 case on November 19, 2019. The only effected public utility is a storm water drain that the applicant will relocate in a dedicated utility easement on the replatted property. The applicant is entering into a deferment agreement for the relocation of the storm water drain and that agreement is a condition of the street closure ordinance. Traffic engineering has no objections to the street closure. Public notice for the proposed street closure was sent via the U.S. Postal Service on October 17, 2019. ALTERNATIVES: Deny the request to close the street and have the developer redesign the planned Section 8 Senior living apartment complex so the street in question would remain opened for public use. This option may make the project cost prohibitive because the current project footprint calls for a single apartment building and associated parking lot that, if divided by a surface street, may increase the project’s construction costs due to redesigning the building plans and the added expense of additional building materials to support separate structures on two building locations. FISCAL IMPACT: Fish Pond Development, LLC contracted with Tasador, Inc, a real estate appraisal company, to appraise 6 th Street between Buford Avenue and Hancock Avenue and determine the fair market value of the property to be $28,000. The funds the City will receive as a result of the street closure will be deposited in to the Street Trust Fund per Sec. 49 -12 of the City Code. RECOMMENDATION: The closure of this section of 6th street will facilitate the building of a new affordable living complex for lower income senior citizens. The planned housing development project will give seniors an opportunity to increase their quality of life by having access to a safe and affordable apartment home. Staff fully supportsthe street closure and recommends City Council approve the applicant’s request. LIST OF SUPPORTING DOCUMENTS: Ordinance with exhibit Power Point Presentation Location map Ordinance closing, abandoning and vacating a 16,500 square foot portion of 6th Street, a portion of public street lying between Buford Avenue and Hancock Avenue, conditioned upon payment of $28,000 for fair market value of the improved street and execution of an agreement to relocate stormwater infrastructure WHEREAS, Fish Pond Development, LLC (Owner of adjacent lots) is requesting the closure, abandonment and vacation of a portion of Public Improved Street, 6th Street, located between Buford Avenue and Hancock Avenue; WHEREAS, Owner is seeking to plat adjacent lots without inclusion of street section for the development of senior living facility income-based apartments; WHEREAS, with proper notice to the public, a public hearing was held on Tuesday, October 29,2019, during a meeting of the City Council, during which all interested parties and citizens were allowed to appear and be heard; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to close, abandon and vacate a 16,500 square foot portion of public street, 6th Street, lying between Buford Avenue and Hancock Avenue; subject to compliance with specified condition, subject to compliance by the Owner with the conditions specified in this ordinance. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Pursuant to the request of Fish Pond Development, LLC, (Owner of adjacent properties), the 16,500 square foot portion of 6th Street, a portion of public street lying between Buford Avenue and Hancock Avenue, as recorded in Volume A, Page 23, Map Records of Nueces County, Texas, more particularly described by Exhibit “A,” which is a metes and bounds description and field notes, and Exhibit “B”, which is the graphical representation of the legal description, is closed, abandoned, and vacated by the City of Corpus Christi (“City”), subject to the Owners’ compliance with the conditions specified in Section 2 of this ordinance. Exhibit “A,” which is a metes and bounds description and field notes, “Exhibit B”, which is the graphical representation of the legal description, which are attached to and incorporated in this ordinance by reference as if it was fully set out herein in their entireties. SECTION 2. The closing, abandonment and vacation of a section of the improved street described in Section 1 of this ordinance is expressly conditioned upon the Owners’ compliance with the following requirements: a.Payment to the City of $28,000 for the fair market value of the improved street pursuant to Corpus Christi Code 49-12. b.Execution of a Deferment Agreement with the City of Corpus Christi to relocate stormwater and water infrastructure within the public right of way to be abandoned and the posting of fiscal security to ensure relocation of said stormwater and water infrastructure. c.Upon approval by the City Council and issuance of the ordinance, all grants of public street right-of-way closures must be recorded at the Owners’ expense in the real property Official Deed and Map Records of Nueces County, Texas, in which the affected property is located, with a copy of the recording provided to the City. Failure to record as required by this Ordinance within 180 calendar days will hereby make this Ordinance null and void. d. Failure to comply with all the conditions outlined in this Ordinance will hereby make the Ordinance null and void. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 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 October 29, 2019 Street Closure of 6th Street, between Buford Avenue and Hancock Avenue Vicinity Map N6thStreet (section to be closed) Aerial Overview N Yin Investment, LLC. A 7thStProposed street closure area7thSt Staff Recommendation Approval Fish Pond at Corpus Christi Notices Mail Area DATE:October 21, 2019 TO:Peter Zanoni, City Manager FROM:Al Raymond, Director Development Services Department alraymond@cctexas.com (361) 826-3575 CAPTION: 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-15” Single-Family 15 District. SUMMARY: The purpose of the zoning request is to allow for the construction of a denser single-family neighborhood. BACKGROUND AND FINDINGS: On October 1, 2019, City Council held a public hearing and considered the rezoning to “RS-6” Single-Family 6 District. The result was no action by City Council. On October 15, 2019, City Council requested reconsideration of the zoning case as a result of the support by Flour Bluff Independent School District of the change in zoning from “RE” Residential Estate District to “RS-15” Single-Family 15 District. The proposed “RS-15” District allows up to 2.9 dwelling units per acre. The minimum lot size is 15,000 square feet. On October 29, 2019, with a ¾ vote on the first reading of the ordinance, City Council approved the change from “RE” Residential Estate District to the “RS-15” Single-Family 15 District. The subject property is 15.96 acres in size. The owner is proposing to construct single-family homes. The existing “RE” Residential Estate District allows single family homes at one dwelling unit per acre. The proposed “RS-6” Single-Family 6 District allows up to 7 dwelling units per acre. The minimum lot size is 6,000 square feet. On March 20, 2019, the Planning Commission recommended denial of the applicant’s request to rezone the property from the “RE” Residential Estate District to the “RM-2” Multifamily 2 District to allow for the construction of an apartment complex. However, the City Council failed to reach Rezoning property at or near 2110 Laguna Shores Road AGENDA MEMORANDUM Public Hearing and First Reading Ordinance for October 29, 2019 Second Reading Ordinance for November 12, 2019 consensus concerning the rezoning to the “RM-2” District. The result was no action by the City Council. In the event the City Council fails to act within six months, such proposed Zoning Map amendment is deemed denied. Per UDC 3.3.6.B, if the applicant withdraws the application after Planning Commission has held a public hearing and made a recommendation on the application, no further application for rezoning the same district may be submitted for 12 months from the date of the recommendation. The applicant has withdrawn the application for “RM-2” and submitted a new application to rezone the property from “RE” Residential Estate District to the “RS-6” Single- family 6 District to allow for the construction of Single-Family homes. Conformity to City Policy The subject property is located within the boundaries of the Flour Bluff Area Development Plan and is planned for low density residential uses. The proposed rezoning to the “RS-6” Single- Family 6 District is inconsistent with the adopted Comprehensive Plan (Plan CC) and warrants a Future Land Use Map amendment. Public Input Process Number of Notices Mailed 58 within 200-foot notification area 5 outside notification area As of September 24, 2019: In Favor 3 inside notification area 0 outside notification area In Opposition 22 inside notification area 0 outside notification area Totaling 59.75% of the land within the 200-foot notification area in opposition. Due to the opposition exceeding 20%, the rezoning case is considered controversial. Therefore, three quarters of City Council members must vote in approval to approve the change of zoning. Commission Recommendation Planning Commission recommended approval the change of zoning from the “RE” Residential Estate District to the “RS-6” Single Family 6 District on July 10, 2019. ALTERNATIVES: 1. Deny the zoning request which will still allow the construction of a single-family neighborhood at current density limitations. 2. Approval of another residential zoning district within the range of the request (“RS-22”, “RS-15”, and “RS-10”). 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 “RE” Residential Estate District to the “RS-6” Single Family 6 District with following vote count. Please note, due to the opposition exceeding 20%, the rezoning case is considered controversial. Therefore, three quarters of City Council members must vote in approval to approve the change of zoning. 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. 0719-02 B&A Terra Firma Development, LLC: Ordinance rezoning property at or near 2110 Laguna Shores Road from the “RE” Residential Estate District to the “RS-15” Single Family 15 District. WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding the application of B&A Terra Firma Development, 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, July 10, 2019, during a meeting of the Planning Commission. The Planning Commission recommended approval of the change of zoning from the “RE” Residential Estate District to the “RS-6” Single Family 6 District and on Tuesday, October 1, 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 B&A Terra Firma Development, 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 15.96 acre tract out of Lots 9 and 10, Section 54, Flour Bluff and Encinal Farms and Garden Tracts, located on the west side of Laguna Shores Road, north of Hustlin Hornet Drive, and south of Lola Johnson Road (the “Property”), from the “RE” Residential Estate District to the “RS-15” Single Family 15 District (Zoning Map No. 035030), 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. 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 FLOUR BLUFF INDEPENDENT SCHOOL DISTRICT 2505 Waldron Road Corpus Christi, Texas 78418 (361) 694-9205 •FAX (361) 694-9809 dfreeman@flourbluffschools.net David Freeman, Ed.D. Superintendent October 9, 2019 Peter Zanoni 1201 Leopard Street Corpus Christi, TX 78401 Mr. Zanoni, After reviewing the proceedings and outcome from the October 1, 2019 City Council meeting concerning Rezoning Case No. 0719-02, I would like to reiterate the school district’s position regarding the proposed development. While we welcome the development and fully support the rights of property owners, we oppose the RS-6 designation for a variety of reasons. Most notably, the density of an RS-6 development would intensify an already congested traffic pattern. Furthermore, the lack of sidewalks and bus turnaround areas could impact student safety. We have environmental concerns with an overly populated area and the probable negative impact on our outdoor education area. We believe the RS-15 designation would be more tolerable and advantageous for all parties. Please feel free to contact me should you need more information or clarifications. Respectfully, David Freeman, Ed. D. Superintendent Flour Bluff Independent School District STAFF REPORT Case No. 0719-02 INFOR No. 19ZN1005 Planning Commission Hearing Date: July 10, 2019 Applicant & Legal Description Owner: B&A Terra Firma Development, LLC. Applicant: Eric Zarghooni Location Address: 2110 Laguna Shores Road Legal Description: Being a 15.96 acre tract out of lots 9 and 10, Section 54, Flour Bluff and Encinal Farms and Garden Tracts, located on the west side of Laguna Shores Road, north of Hustlin Hornet Drive, and south of Lola Johnson Road. Zoning Request From: “RE” Residential Estate District To: “RS-6” Single-Family 6 Residential District Area: 15.96 acres Purpose of Request: To allow for the construction of Single-Family Development. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site “RE” Residential Estate Vacant Low Density Residential North “RS-6” Single-Family 6 Low Density Residential Low Density Residential South “IH” Heavy Industrial and “CR-1” Resort Commercial Vacant Commercial East “CR-1” Resort Commercial and “RS-15” Single-Family 15 Vacant and Low Density Residential Commercial West “CR-1” Resort Commercial, “RM-1” Multifamily 1, and “RS-6” Single-Family 6 Vacant Water and Low Density Residential ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Flour Bluff Area Development Plan and is planned for low density residential uses. The proposed rezoning to the “RS-6” Single-Family 6 District is inconsistent with the adopted Comprehensive Plan (Plan CC) and warrants a Future Land Use Map amendment. Map No.: 035030 Zoning Violations: None Transportation Transportation and Circulation: The subject property has approximately 1,190 feet of street frontage along Laguna Shores Road which is designated as a “P1” Parkway Collector Street. According to the Urban Transportation Plan, “P1” Parkway Collector Streets can convey a capacity between 1,000 to 3,000 Average Daily Trips (ADT). Staff Report Page 2 Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume Laguna Shores Road “P1” Parkway Collector 80’ ROW 40’ paved 70’ ROW 38’ paved N/A Staff Summary: Requested Zoning: The applicant is requesting a rezoning from the “RE” Residential Estate District to the “RS-6” Single-Family 6 District to allow for the construction of Single- Family homes. On March 20, 2019, the Planning Commission recommended denial of the applicant’s request to rezone the property from the “RE” Residential Estate District to the “RM-2” Multifamily 2 District to allow for the construction of an apartment complex. However, the City Council voted to deny the “RM-2” request which failed. The result of the item was no action by the City Council. In the event the City Council fails to act within six months, such proposed Zoning Map amendment is deemed denied. Per UDC 3.3.6.B, if the applicant withdraws the application after Planning Commission has held a public hearing and made a recommendation on the application, no further application for rezoning the same district may be submitted for 12 months from the date of the recommendation. The applicant has withdrawn the application for “RM-2 and submitted a new application to rezone the property from ”RE” Residential Estate District to the “RS-6” Single-family 6 District to allow for the construction of Single-Family homes. Development Plan: The subject property is 15.96 acres in size. The owner is proposing Single Family Homes. Existing Land Uses & Zoning: The subject property is currently zoned “RE” Residential Estate, consists of vacant land, and has remained undeveloped since annexation in 1962. The subject property was zoned “RE” Residential Estate District in 2006 from the “RS-6” Single-Family 6 District, “CR-1” Resort Commercial District, “RM- 1” Multifamily 1 District, and “IH” Heavy Industrial District. The associated project was a single-family residential subdivision that was never constructed. To the north is a single- family residential subdivision along Lola Johnson Road (Belk Lola Johnson Subdivision) platted in 1953 and zoned “RS-6” Single-Family 6 District. To the south are vacant properties zoned “IH” Heavy Industrial District and “CR-1” Resort Commercial District. To the east are vacant properties, submerged properties, and single-family homes zoned “CR-1” Resort Commercial District. Five properties were recently rezoned to the “RS-15” Single-Family District. To the west are vacant properties and a pond zoned “CR-1” Resort Commercial District, “RM-1” Multifamily 1 District and “RS-6” Single- Family 6 District. Staff Report Page 3 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. Utilities: Water: 12-inch ACP Line Wastewater: 16-inch PVC Force Main located along Laguna Shores Road. Wastewater service is currently unavailable to the subject property. The closest available wastewater manhole is accessible through Jamaica Drive which connects to a lift station. The lift station on Jamaica Drive can accommodate the proposed development. Gas: 2-inch Service Line Storm Water: Road side drainage along Laguna Shores Road. Plan CC & Area Development Plan Consistency: The subject property is located within the boundaries of the Flour Bluff Area Development Plan (ADP). The proposed rezoning to the “RS-6” Single-Family 6 District is consistent with the general policies of the adopted Comprehensive Plan (Plan CC). 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) • Promote interconnected neighborhoods with appropriate transitions between lower- intensity and higher-intensity land uses. (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). Department Comments: • The proposed rezoning is “RS-6” Single-Family 6 District is 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 will not have a negative impact upon the surrounding neighborhood. • The subject property was zoned “RE” Residential Estate District in 2006 from the “RS-6” Single-Family 6 District, “CR-1” Resort Commercial District, “RM-1” Staff Report Page 4 Multifamily 1 District, and “IH” Heavy Industrial District. The associated project was a single-family residential subdivision that was never constructed. • The proposed single-family homes project is compatible with the fabric of the neighborhood. The residential subdivision to the north along Lola Johnson Road and the recent rezonings across Laguna Shores Road to single-family zoning districts indicate that single-family residential is the predominate use on this portion of Laguna Shores Road. • The subject property is 15.96 acres in size. The proposed “RS-6” Single-family 6 District allows up to 7 lots per acre. Therefore, the maximum number of allowable lots per the size of the property will be 88 lots including 20% open space and infrastructure. However, the applicant is proposing a preliminary layout of the single- family lots to yield approximately 70 lots due to the configuration of the property. • Laguna Shores Road is designated as a “P1” Parkway which has a right-of-way width of 80-feet, but only has a pavement section of 40-feet (2 lanes). A “C1” Minor Collector Street also has a pavement section of 40-feet. • Traffic should have convenient access to an arterial street that can accommodate the larger traffic demands. The Peak Hour Trips submitted by the applicant shows a total of 125.3 Peak A.M and P.M Trips. Laguna Shores Road, a 2 lane 40-foot wide roadway, should be able to absorb the increased traffic. • The only potential source of wastewater is to the northwest connecting though Jamaica Drive and an existing lift station. • Due to the adjacency to properties zoned “RS-6” Single-Family 6 District, a buffer yard will not be required along the northern and a portion of the western property lines. Type B buffer yards consist of 10 feet in width and a 10 point requirement as per the Unified Development Code (UDC). Along the southern property line is a property zoned “IH” Heavy Industrial District. Therefore, a Type E buffer yard would be required. Type E buffer yards consist of 50 feet in width and a 50-point requirement as per the Unified Development Code (UDC). • The 18 parcels zoned “RS-6 north of the property, south of Lola Johnson range from 3,250 sq. ft to 16,247 square feet averaging 8,064 sq. ft. Planning Commission and Staff Recommendation: Approval of the change of zoning from the “RE” Residential Estate District to the “RS-6” Single-family 6 District. Public Notification Number of Notices Mailed – 58 within 200-foot notification area 5 outside notification area As of July 30, 2019: In Favor – 3 inside notification area – 0 outside notification area In Opposition – 22 inside notification area – 0 outside notification area Totaling 59.75% of the land within the 200-foot notification area in opposition. Staff Report Page 5 Attachments: A. Location Map (Existing Zoning & Notice Area) B. Public Comments Received (if any) K:\DevelopmentSvcs\SHARED\ZONING CASES\2019\0719-02 B&A Terra Firma Development, LLC\PC Documents\Staff Report_0719-02 B&A Terra Firma Development, LLC.docx 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 Staff Report Page 13 Staff Report Page 14 Staff Report Page 15 Staff Report Page 16 Staff Report Page 17 Staff Report Page 18 Staff Report Page 19 Staff Report Page 20 Staff Report Page 21 Staff Report Page 22 Staff Report Page 23 Staff Report Page 24 Staff Report Page 25 Staff Report Page 26 City Council Presentation October 29, 2019 Zoning Case #0719-02 B&A Terra Firma Development, LLC. Rezoning for a Property at 2110 Laguna Shores Road From: “RE” To: “RS-6” 2 Aerial Overview Subject Property at 2110 Laguna Shores Road 3 N 4.62 Acre Remainder 4 Zoning Pattern 5 RS-6 vs. RS-15 RS-6 RS-15 Min. Lot Area (sq. ft.)6,000 15,000 Min. Lot Width (ft.)50 50 Min. Street Yard (ft.)25 25 Min. Side Yard (ft.)5 5 Min. Open Space 30%30% Max. Height (ft.)35 35 Max. Density (du/ac)7.26 2.90 6 Planning Commission and Staff Recommendation Approval of the “RS-6” Single Family 6 Residential District 7 Public Notification 58 Notices mailed inside 200’ buffer 5 Notices mailed outside 200’ buffer Notification Area Opposed: 22 (59.75%) In Favor: 3 XX X X X X XX X X XX X OOOX XX X XX X X X 8 UDC Requirements Buffer Yards: RS to IH: Type E: 50’ and 50 points Setbacks: Street: 25 feet Side & Rear: 5 feet Parking: 2 spaces/unit Landscaping: 30% of street yard required Uses Allowed: Single-Family Homes, Educational facility, Places of Worship, Group Home (6 or fewer) 9 Utilities Water:12-inch ACP Line Wastewater:16-inch PVC Force Main located along Laguna Shores Road. Wastewater service is currently unavailable to the subject property. The closest available wastewater manhole is accessible through Jamaica Drive which connects to a lift station. The lift station can accommodate the proposed development Gas:2-inch Service Line Storm Water:Road side drainage along Laguna Shores Road. DATE:September 27, 2019 TO:Peter Zanoni, City Manager FROM:Mike Markle, Chief of Police mikema@cctexas.com 886-2604 CAPTION: Ordinance authorizing acceptance of grant from U. S. Department of Justice, Bureau of Justice Assistance, in amount of $175,175 for FY 2019 Edward Byrne Memorial Justice Assistance Grant Program; and appropriating $175,175 in Police Grants Fund with $80,917 of funds distributed to Nueces County and $13,340 of funds distributed to City of Robstown. The remaining funds of $80,918 will be used by the City for enhancement of law enforcement efforts. SUMMARY: The City has been awarded $175,175 from the U. S. Department of Justice, Bureau of Justice Assistance for FY 2019 Edward Byrne Memorial Justice Assistance Grant Program. As the fiscal agent for the grant, funds will will be distributed to Nueces County in the amount of $80,917 and $13,340 of the funds will be distributed to the City of Robstown. The remaining funds of $80,918 will be used by the City for enhancement of law enforcement efforts. The City must accept the award and appropriate the funds, then disburse the funds as outlined above. BACKGROUND AND FINDINGS: JAG funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice for any one or more of the following purpose areas: • Law enforcement programs • Prosecution and court programs • Prevention and education programs • Drug treatment programs • Corrections and community corrections programs • Planning, evaluation, and technology improvement programs With this award, the program has provided a total of $5,607,137 in grant funds to the City since the program began in 1996. The funds have been used to purchase backbone equipment for the Mobil Data/Automated Vehicle Location project, 27 police package vehicles, 69 unmarked police units, a property van, SWAT equipment, a bomb suit, digitized radios, radios for the Communications van, digital cameras, radars, video cameras, personal computer hardware and software, an upgrade to the computer system and the radio microwave system, a mobile police substation, polygraph instrument, air packs, SWAT rescue vehicle, radios for Project 25 Accepting and appropriating the 2019 Edward Byrne Memorial Justice Assistance Grant (JAG) Program AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 29, 2019 Second Reading Ordinance for the City Council Meeting of November 12, 2019 compliance, automated ticket writers, and other police equipment. The Police Department, Nueces County, and City of Robstown proposes to reduce crime and improve public safety through the purchase of equipment and technology and the training of law enforcement officers and support personnel. ALTERNATIVES: The grant funds provide equipment, technology, and training for law enforcement officers. Without this grant, the funds will have to come from a different source to supply the same needs for the department. FINANCIAL IMPACT: The grant funds in the amount of $175,175 will be placed in the Police Grants fund. The amount of $80,917 will be distributed to Nueces County and $13,340 will be distributed to Robstown. The remaining $80,918 will be used by the City to enhance enforcement efforts.There is no match required by the City for this grant. Funding Detail: Fund:1061 - Police Grants Organization/Activity: 820827F, 820828F, & 820829F Mission Element:151 Project # (CIP Only): Account:520090 Minor tools & equipment 530000 Professional services RECOMMENDATION: Staff recommends accepting the grant and appropriating the funds in the amount of $175,175 where $80,817 will be distributed to Nueces County and $13,340 will go to Robstown. The remaining $80,918 will be used for law enforcement efforts by the City. LIST OF SUPPORTING DOCUMENTS: Grant award letter Interlocal agreements with Nueces County and City of Robstown Ordinance authorizing acceptance of grant from U. S. Department of Justice, Bureau of Justice Assistance, in amount of $175,175 for FY 2019 Edward Byrne Memorial Justice Assistance Grant Program; and appropriating $175,175 in Police Grants Fund with $80,917 of funds distributed to Nueces County and $13,340 of funds distributed to City of Robstown. The remaining funds of $80,918 will be used by the City for enhancement of law enforcement efforts. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager of designee is authorized to execute all documents necessary to accept a grant from the U.S. Department of Justice, Bureau of Justice Assistance, in the amount of $175,175 for FY 2019 Edward Byrne Memorial Justice Assistance Grant (JAG) Program. SECTION 2.That $175,175 is appropriated in the No. 1061 Police Grants Fund for the enhancement of law enforcement efforts by the Police Department and Nueces County under an established interlocal agreement. Under the interlocal agreement, $80,917 of the funds are to be distributed to Nueces County and $13,340 of the funds are to be distributed to the City of Robstown. 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 U.S. Department of Justice Office of Justice Programs Washington, D.C. 20531Office of the Assistant Attorney General September 26, 2019 Chief Mike Markle City of Corpus Christi 1201 Leopard Street P.O. Box 9277 Corpus Christi, TX 78401 Dear Chief Markle: On behalf of Attorney General William P. Barr, it is my pleasure to inform you that the Office of Justice Programs has approved your application for funding under the FY 19 Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Local Solicitation in the amount of $175,175 for City of Corpus Christi. Enclosed you will find the Grant Award and Special Conditions documents. This award is subject to all administrative and financial requirements, including the timely submission of all financial and programmatic reports, resolution of all interim audit findings, and the maintenance of a minimum level of cash-on-hand. Should you not adhere to these requirements, you will be in violation of the terms of this agreement and the award will be subject to termination for cause or other administrative action as appropriate. If you have questions regarding this award, please contact: - Program Questions, Wendy Y. Rose, Program Manager at (202) 514-7842; and - Financial Questions, the Office of the Chief Financial Officer, Customer Service Center (CSC) at (800) 458-0786, or you may contact the CSC at ask.ocfo@usdoj.gov. Congratulations, and we look forward to working with you. Sincerely, Enclosures Katharine T. Sullivan Principal Deputy Assistant Attorney General U.S. Department of Justice Office of Justice Programs September 26, 2019 Chief Mike Markle City of Corpus Christi 1201 Leopard Street P.O. Box 9277 Corpus Christi, TX 78401 Congratulations on your recent award! The Office for Civil Rights (OCR), Office of Justice Programs (OJP), U.S. Department of Justice (DOJ) has been delegated the responsibility for ensuring that recipients of federal financial assistance from the OJP, the Office of Community Oriented Policing Services (COPS), and the Office on Violence Against Women (OVW) are not engaged in discrimination prohibited by law. Several federal civil rights laws, such as Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, require recipients of federal financial assistance to give assurances that they will comply with those laws. In addition to those civil rights laws, many grant program statutes contain nondiscrimination provisions that require compliance with them as a condition of receiving federal financial assistance. For a complete review of these civil rights laws and nondiscrimination requirements, in connection with OJP and other DOJ awards, see https://ojp.gov/funding/Explore/LegalOverview/CivilRightsRequirements.htm Under the delegation of authority, the OCR investigates allegations of discrimination against recipients from individuals, entities, or groups. In addition, the OCR conducts limited compliance reviews and audits based on regulatory criteria. These reviews and audits permit the OCR to evaluate whether recipients of financial assistance from the Department are providing services in a non- discriminatory manner to their service population or have employment practices that meet equal-opportunity standards. If you are a recipient of grant awards under the Omnibus Crime Control and Safe Streets Act or the Juvenile Justice and Delinquency Prevention Act and your agency is part of a criminal justice system, there are two additional obligations that may apply in connection with the awards: (1) complying with the regulation relating to Equal Employment Opportunity Programs (EEOPs); and (2) submitting findings of discrimination to OCR. For additional information regarding the EEOP requirement, see 28 CFR Part 42, subpart E, and for additional information regarding requirements when there is an adverse finding, see 28 C.F.R. §§ 42.204(c), .205(c)(5). Please submit information about any adverse finding to the OCR at the above address. We at the OCR are available to help you and your organization meet the civil rights requirements that are associated with OJP and other DOJ grant funding. If you would like the OCR to assist you in fulfilling your organization's civil rights or nondiscrimination responsibilities as a recipient of federal financial assistance, please do not hesitate to let us know. Dear Chief Markle: Sincerely, Michael L. Alston Director cc:Grant Manager Financial Analyst Washington, DC 20531 Office of Civil Rights Grant PAGE 1 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance 1. RECIPIENT NAME AND ADDRESS (Including Zip Code) City of Corpus Christi 1201 Leopard Street P.O. Box 9277 Corpus Christi, TX 78401 8. SUPPLEMENT NUMBER 00 9. PREVIOUS AWARD AMOUNT 10. AMOUNT OF THIS AWARD $ 0 $ 175,175 11. TOTAL AWARD $ 175,175 2a. GRANTEE IRS/VENDOR NO. 746000576 2b. GRANTEE DUNS NO. 069457786 3. PROJECT TITLE 2019 Edward Byrne Memorial Justice Assistance Grant 12. SPECIAL CONDITIONS THE ABOVE GRANT PROJECT IS APPROVED SUBJECT TO SUCH CONDITIONS OR LIMITATIONS AS ARE SET FORTH ON THE ATTACHED PAGE(S). 13. STATUTORY AUTHORITY FOR GRANT This project is supported under FY19(BJA - JAG State and JAG Local) Title I of Pub. L. No. 90-351 (generally codified at 34 U.S.C. 10151-10726), including subpart 1 of part E (codified at 34 U.S.C. 10151 - 10158); see also 28 U.S.C. 530C(a). 14 . CATALOG OF DOMESTIC FEDERAL ASSISTANCE (CFDA Number) 16.738 - Edward Byrne Memorial Justice Assistance Grant Program 15. METHOD OF PAYMENT GPRS AGENCY APPROVAL 16. TYPED NAME AND TITLE OF APPROVING OFFICIAL GRANTEE ACCEPTANCE Katharine T. Sullivan Principal Deputy Assistant Attorney General AGENCY USE ONLY 20. ACCOUNTING CLASSIFICATION CODES 21. FISCAL YEAR FUND CODE BUD. ACT.OFC. DIV. REG.SUB.POMS AMOUNT DJBX 80 00 00 175175 UDJUGT1578 18. TYPED NAME AND TITLE OF AUTHORIZED GRANTEE OFFICIAL Mike Markle Chief of Police 4. AWARD NUMBER:2019-DJ-BX-0569 5. PROJECT PERIOD: FROM BUDGET PERIOD: FROM 6. AWARD DATE 7. ACTION Initial 09/26/2019 TO TO 10/01/2018 10/01/2018 09/30/2022 09/30/2022 OJP FORM 4000/2 (REV. 5-87) PREVIOUS EDITIONS ARE OBSOLETE. OJP FORM 4000/2 (REV. 4-88) 19. SIGNATURE OF AUTHORIZED RECIPIENT OFFICIAL 19A. DATE17. SIGNATURE OF APPROVING OFFICIAL 29 AWARD CONTINUATION SHEET Grant PAGE 2 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Requirements of the award; remedies for non-compliance or for materially false statements The conditions of this award are material requirements of the award. Compliance with any assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance also is a material requirement of this award. By signing and accepting this award on behalf of the recipient, the authorized recipient official accepts all material requirements of the award, and specifically adopts all such assurances or certifications as if personally executed by the authorized recipient official. Failure to comply with any one or more of these award requirements -- whether a condition set out in full below, a condition incorporated by reference below, or an assurance or certification related to conduct during the award period - - may result in the Office of Justice Programs ("OJP") taking appropriate action with respect to the recipient and the award. Among other things, the OJP may withhold award funds, disallow costs, or suspend or terminate the award. The U.S. Department of Justice ("DOJ"), including OJP, also may take other legal action as appropriate. Any materially false, fictitious, or fraudulent statement to the federal government related to this award (or concealment or omission of a material fact) may be the subject of criminal prosecution (including under 18 U.S.C. 1001 and/or 1621, and/or 34 U.S.C. 10271-10273), and also may lead to imposition of civil penalties and administrative remedies for false claims or otherwise (including under 31 U.S.C. 3729-3730 and 3801-3812). Should any provision of a requirement of this award be held to be invalid or unenforceable by its terms, that provision shall first be applied with a limited construction so as to give it the maximum effect permitted by law. Should it be held, instead, that the provision is utterly invalid or -unenforceable, such provision shall be deemed severable from this award. Applicability of Part 200 Uniform Requirements The Uniform Administrative Requirements, Cost Principles, and Audit Requirements in 2 C.F.R. Part 200, as adopted and supplemented by DOJ in 2 C.F.R. Part 2800 (together, the "Part 200 Uniform Requirements") apply to this FY 2019 award from OJP. The Part 200 Uniform Requirements were first adopted by DOJ on December 26, 2014. If this FY 2019 award supplements funds previously awarded by OJP under the same award number (e.g., funds awarded during or before December 2014), the Part 200 Uniform Requirements apply with respect to all funds under that award number (regardless of the award date, and regardless of whether derived from the initial award or a supplemental award) that are obligated on or after the acceptance date of this FY 2019 award. For more information and resources on the Part 200 Uniform Requirements as they relate to OJP awards and subawards ("subgrants"), see the OJP website at https://ojp.gov/funding/Part200UniformRequirements.htm. Record retention and access: Records pertinent to the award that the recipient (and any subrecipient ("subgrantee") at any tier) must retain -- typically for a period of 3 years from the date of submission of the final expenditure report (SF 425), unless a different retention period applies -- and to which the recipient (and any subrecipient ("subgrantee") at any tier) must provide access, include performance measurement information, in addition to the financial records, supporting documents, statistical records, and other pertinent records indicated at 2 C.F.R. 200.333. In the event that an award-related question arises from documents or other materials prepared or distributed by OJP that may appear to conflict with, or differ in some way from, the provisions of the Part 200 Uniform Requirements, the recipient is to contact OJP promptly for clarification. 1. 2. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 3 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Compliance with DOJ Grants Financial Guide References to the DOJ Grants Financial Guide are to the DOJ Grants Financial Guide as posted on the OJP website (currently, the "DOJ Grants Financial Guide" available at https://ojp.gov/financialguide/DOJ/index.htm), including any updated version that may be posted during the period of performance. The recipient agrees to comply with the DOJ Grants Financial Guide. Reclassification of various statutory provisions to a new Title 34 of the United States Code On September 1, 2017, various statutory provisions previously codified elsewhere in the U.S. Code were editorially reclassified (that is, moved and renumbered) to a new Title 34, entitled "Crime Control and Law Enforcement." The reclassification encompassed a number of statutory provisions pertinent to OJP awards (that is, OJP grants and cooperative agreements), including many provisions previously codified in Title 42 of the U.S. Code. Effective as of September 1, 2017, any reference in this award document to a statutory provision that has been reclassified to the new Title 34 of the U.S. Code is to be read as a reference to that statutory provision as reclassified to Title 34. This rule of construction specifically includes references set out in award conditions, references set out in material incorporated by reference through award conditions, and references set out in other award requirements. Required training for Point of Contact and all Financial Points of Contact Both the Point of Contact (POC) and all Financial Points of Contact (FPOCs) for this award must have successfully completed an "OJP financial management and grant administration training" by 120 days after the date of the recipient's acceptance of the award. Successful completion of such a training on or after January 1, 2017, will satisfy this condition. In the event that either the POC or an FPOC for this award changes during the period of performance, the new POC or FPOC must have successfully completed an "OJP financial management and grant administration training" by 120 calendar days after -- (1) the date of OJP's approval of the "Change Grantee Contact" GAN (in the case of a new POC), or (2) the date the POC enters information on the new FPOC in GMS (in the case of a new FPOC). Successful completion of such a training on or after January 1, 2017, will satisfy this condition. A list of OJP trainings that OJP will consider "OJP financial management and grant administration training" for purposes of this condition is available at https://www.ojp.gov/training/fmts.htm. All trainings that satisfy this condition include a session on grant fraud prevention and detection The recipient should anticipate that OJP will immediately withhold ("freeze") award funds if the recipient fails to comply with this condition. The recipient's failure to comply also may lead OJP to impose additional appropriate conditions on this award. Requirements related to "de minimis" indirect cost rate A recipient that is eligible under the Part 200 Uniform Requirements and other applicable law to use the "de minimis" indirect cost rate described in 2 C.F.R. 200.414(f), and that elects to use the "de minimis" indirect cost rate, must advise OJP in writing of both its eligibility and its election, and must comply with all associated requirements in the Part 200 Uniform Requirements. The "de minimis" rate may be applied only to modified total direct costs (MTDC) as defined by the Part 200 Uniform Requirements. 3. 4. 5. 6. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 4 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Requirement to report potentially duplicative funding If the recipient currently has other active awards of federal funds, or if the recipient receives any other award of federal funds during the period of performance for this award, the recipient promptly must determine whether funds from any of those other federal awards have been, are being, or are to be used (in whole or in part) for one or more of the identical cost items for which funds are provided under this award. If so, the recipient must promptly notify the DOJ awarding agency (OJP or OVW, as appropriate) in writing of the potential duplication, and, if so requested by the DOJ awarding agency, must seek a budget-modification or change-of-project-scope grant adjustment notice (GAN) to eliminate any inappropriate duplication of funding. Requirements related to System for Award Management and Universal Identifier Requirements The recipient must comply with applicable requirements regarding the System for Award Management (SAM), currently accessible at https://www.sam.gov/. This includes applicable requirements regarding registration with SAM, as well as maintaining the currency of information in SAM. The recipient also must comply with applicable restrictions on subawards ("subgrants") to first-tier subrecipients (first-tier "subgrantees"), including restrictions on subawards to entities that do not acquire and provide (to the recipient) the unique entity identifier required for SAM registration. The details of the recipient's obligations related to SAM and to unique entity identifiers are posted on the OJP web site at https://ojp.gov/funding/Explore/SAM.htm (Award condition: System for Award Management (SAM) and Universal Identifier Requirements), and are incorporated by reference here. This condition does not apply to an award to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 7. 8. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 5 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Employment eligibility verification for hiring under the award 1. The recipient (and any subrecipient at any tier) must-- A. Ensure that, as part of the hiring process for any position within the United States that is or will be funded (in whole or in part) with award funds, the recipient (or any subrecipient) properly verifies the employment eligibility of the individual who is being hired, consistent with the provisions of 8 U.S.C. 1324a(a)(1) and (2). B. Notify all persons associated with the recipient (or any subrecipient) who are or will be involved in activities under this award of both-- (1) this award requirement for verification of employment eligibility, and (2) the associated provisions in 8 U.S.C. 1324a(a)(1) and (2) that, generally speaking, make it unlawful, in the United States, to hire (or recruit for employment) certain aliens. C. Provide training (to the extent necessary) to those persons required by this condition to be notified of the award requirement for employment eligibility verification and of the associated provisions of 8 U.S.C. 1324a(a)(1) and (2). D. As part of the recordkeeping for the award (including pursuant to the Part 200 Uniform Requirements), maintain records of all employment eligibility verifications pertinent to compliance with this award condition in accordance with Form I-9 record retention requirements, as well as records of all pertinent notifications and trainings. 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions designed to ensure compliance with this condition. 4. Rules of construction A. Staff involved in the hiring process For purposes of this condition, persons "who are or will be involved in activities under this award" specifically includes (without limitation) any and all recipient (or any subrecipient) officials or other staff who are or will be involved in the hiring process with respect to a position that is or will be funded (in whole or in part) with award funds. B. Employment eligibility confirmation with E-Verify For purposes of satisfying the requirement of this condition regarding verification of employment eligibility, the recipient (or any subrecipient) may choose to participate in, and use, E-Verify (www.e-verify.gov), provided an appropriate person authorized to act on behalf of the recipient (or subrecipient) uses E-Verify (and follows the proper E-Verify procedures, including in the event of a "Tentative Nonconfirmation" or a "Final Nonconfirmation") to confirm employment eligibility for each hiring for a position in the United States that is or will be funded (in whole or in part) with award funds. C. "United States" specifically includes the District of Columbia, Puerto Rico, Guam, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands. D. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, or 9. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 6 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS any person or other entity, to violate any federal law, including any applicable civil rights or nondiscrimination law. E. Nothing in this condition, including in paragraph 4.B., shall be understood to relieve any recipient, any subrecipient at any tier, or any person or other entity, of any obligation otherwise imposed by law, including 8 U.S.C. 1324a(a)(1) and (2). Questions about E-Verify should be directed to DHS. For more information about E-Verify visit the E-Verify website (https://www.e-verify.gov/) or email E-Verify at E-Verify@dhs.gov. E-Verify employer agents can email E- Verify at E-VerifyEmployerAgent@dhs.gov. Questions about the meaning or scope of this condition should be directed to OJP, before award acceptance. Requirement to report actual or imminent breach of personally identifiable information (PII) The recipient (and any "subrecipient" at any tier) must have written procedures in place to respond in the event of an actual or imminent "breach" (OMB M-17-12) if it (or a subrecipient) -- (1) creates, collects, uses, processes, stores, maintains, disseminates, discloses, or disposes of "personally identifiable information (PII)" (2 CFR 200.79) within the scope of an OJP grant-funded program or activity, or (2) uses or operates a "Federal information system" (OMB Circular A-130). The recipient's breach procedures must include a requirement to report actual or imminent breach of PII to an OJP Program Manager no later than 24 hours after an occurrence of an actual breach, or the detection of an imminent breach. All subawards ("subgrants") must have specific federal authorization The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements for authorization of any subaward. This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a "subaward" (and therefore does not consider a procurement "contract"). The details of the requirement for authorization of any subaward are posted on the OJP web site at https://ojp.gov/funding/Explore/SubawardAuthorization.htm (Award condition: All subawards ("subgrants") must have specific federal authorization), and are incorporated by reference here. Specific post-award approval required to use a noncompetitive approach in any procurement contract that would exceed $250,000 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements to obtain specific advance approval to use a noncompetitive approach in any procurement contract that would exceed the Simplified Acquisition Threshold (currently, $250,000). This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a procurement "contract" (and therefore does not consider a subaward). The details of the requirement for advance approval to use a noncompetitive approach in a procurement contract under an OJP award are posted on the OJP web site at https://ojp.gov/funding/Explore/NoncompetitiveProcurement.htm (Award condition: Specific post-award approval required to use a noncompetitive approach in a procurement contract (if contract would exceed $250,000)), and are incorporated by reference here. 10. 11. 12. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 7 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Unreasonable restrictions on competition under the award; association with federal government SCOPE. This condition applies with respect to any procurement of property or services that is funded (in whole or in part) by this award, whether by the recipient or by any subrecipient at any tier, and regardless of the dollar amount of the purchase or acquisition, the method of procurement, or the nature of any legal instrument used. The provisions of this condition must be among those included in any subaward (at any tier). 1. No discrimination, in procurement transactions, against associates of the federal government Consistent with the (DOJ) Part 200 Uniform Requirements -- including as set out at 2 C.F.R. 200.300 (requiring awards to be "manage[d] and administer[ed] in a manner so as to ensure that Federal funding is expended and associated programs are implemented in full accordance with U.S. statutory and public policy requirements") and 200.319(a) (generally requiring "[a]ll procurement transactions [to] be conducted in a manner providing full and open competition" and forbidding practices "restrictive of competition," such as "[p]lacing unreasonable requirements on firms in order for them to qualify to do business" and taking "[a]ny arbitrary action in the procurement process") -- no recipient (or subrecipient, at any tier) may (in any procurement transaction) discriminate against any person or entity on the basis of such person or entity's status as an "associate of the federal government" (or on the basis of such person or entity's status as a parent, affiliate, or subsidiary of such an associate), except as expressly set out in 2 C.F.R. 200.319(a) or as specifically authorized by USDOJ. 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions designed to ensure compliance with this condition. 4. Rules of construction A. The term "associate of the federal government" means any person or entity engaged or employed (in the past or at present) by or on behalf of the federal government -- as an employee, contractor or subcontractor (at any tier), grant recipient or -subrecipient (at any tier), agent, or otherwise -- in undertaking any work, project, or activity for or on behalf of (or in providing goods or services to or on behalf of) the federal government, and includes any applicant for such employment or engagement, and any person or entity committed by legal instrument to undertake any such work, project, or activity (or to provide such goods or services) in future. B. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, or any person or other entity, to violate any federal law, including any applicable civil rights or nondiscrimination law. 13. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 8 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Requirements pertaining to prohibited conduct related to trafficking in persons (including reporting requirements and OJP authority to terminate award) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements (including requirements to report allegations) pertaining to prohibited conduct related to the trafficking of persons, whether on the part of recipients, subrecipients ("subgrantees"), or individuals defined (for purposes of this condition) as "employees" of the recipient or of any subrecipient. The details of the recipient's obligations related to prohibited conduct related to trafficking in persons are posted on the OJP web site at https://ojp.gov/funding/Explore/ProhibitedConduct-Trafficking.htm (Award condition: Prohibited conduct by recipients and subrecipients related to trafficking in persons (including reporting requirements and OJP authority to terminate award)), and are incorporated by reference here. Determination of suitability to interact with participating minors SCOPE. This condition applies to this award if it is indicated -- in the application for the award (as approved by DOJ)(or in the application for any subaward, at any tier), the DOJ funding announcement (solicitation), or an associated federal statute -- that a purpose of some or all of the activities to be carried out under the award (whether by the recipient, or a subrecipient at any tier) is to benefit a set of individuals under 18 years of age. The recipient, and any subrecipient at any tier, must make determinations of suitability before certain individuals may interact with participating minors. This requirement applies regardless of an individual's employment status. The details of this requirement are posted on the OJP web site at https://ojp.gov/funding/Explore/Interact-Minors.htm (Award condition: Determination of suitability required, in advance, for certain individuals who may interact with participating minors), and are incorporated by reference here. Compliance with applicable rules regarding approval, planning, and reporting of conferences, meetings, trainings, and other events The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable laws, regulations, policies, and official DOJ guidance (including specific cost limits, prior approval and reporting requirements, where applicable) governing the use of federal funds for expenses related to conferences (as that term is defined by DOJ), including the provision of food and/or beverages at such conferences, and costs of attendance at such conferences. Information on the pertinent DOJ definition of conferences and the rules applicable to this award appears in the DOJ Grants Financial Guide (currently, as section 3.10 of "Postaward Requirements" in the "DOJ Grants Financial Guide"). Requirement for data on performance and effectiveness under the award The recipient must collect and maintain data that measure the performance and effectiveness of work under this award. The data must be provided to OJP in the manner (including within the timeframes) specified by OJP in the program solicitation or other applicable written guidance. Data collection supports compliance with the Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010, and other applicable laws. OJP Training Guiding Principles Any training or training materials that the recipient -- or any subrecipient ("subgrantee") at any tier -- develops or delivers with OJP award funds must adhere to the OJP Training Guiding Principles for Grantees and Subgrantees, available at https://ojp.gov/funding/Implement/TrainingPrinciplesForGrantees-Subgrantees.htm. 14. 15. 16. 17. 18. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 9 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Effect of failure to address audit issues The recipient understands and agrees that the DOJ awarding agency (OJP or OVW, as appropriate) may withhold award funds, or may impose other related requirements, if (as determined by the DOJ awarding agency) the recipient does not satisfactorily and promptly address outstanding issues from audits required by the Part 200 Uniform Requirements (or by the terms of this award), or other outstanding issues that arise in connection with audits, investigations, or reviews of DOJ awards. Potential imposition of additional requirements The recipient agrees to comply with any additional requirements that may be imposed by the DOJ awarding agency (OJP or OVW, as appropriate) during the period of performance for this award, if the recipient is designated as "high- risk" for purposes of the DOJ high-risk grantee list. Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 42 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 42, specifically including any applicable requirements in Subpart E of 28 C.F.R. Part 42 that relate to an equal employment opportunity program. Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 54 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 54, which relates to nondiscrimination on the basis of sex in certain "education programs." Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 38 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 38 (as may be applicable from time to time), specifically including any applicable requirements regarding written notice to program beneficiaries and prospective program beneficiaries. Currently, among other things, 28 C.F.R. Part 38 includes rules that prohibit specific forms of discrimination on the basis of religion, a religious belief, a refusal to hold a religious belief, or refusal to attend or participate in a religious practice. Part 38, currently, also sets out rules and requirements that pertain to recipient and subrecipient ("subgrantee") organizations that engage in or conduct explicitly religious activities, as well as rules and requirements that pertain to recipients and subrecipients that are faith-based or religious organizations. The text of 28 C.F.R. Part 38 is available via the Electronic Code of Federal Regulations (currently accessible at https://www.ecfr.gov/cgi-bin/ECFR?page=browse), by browsing to Title 28-Judicial Administration, Chapter 1, Part 38, under e-CFR "current" data. 19. 20. 21. 22. 23. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 10 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Restrictions on "lobbying" In general, as a matter of federal law, federal funds awarded by OJP may not be used by the recipient, or any subrecipient ("subgrantee") at any tier, either directly or indirectly, to support or oppose the enactment, repeal, modification, or adoption of any law, regulation, or policy, at any level of government. See 18 U.S.C. 1913. (There may be exceptions if an applicable federal statute specifically authorizes certain activities that otherwise would be barred by law.) Another federal law generally prohibits federal funds awarded by OJP from being used by the recipient, or any subrecipient at any tier, to pay any person to influence (or attempt to influence) a federal agency, a Member of Congress, or Congress (or an official or employee of any of them) with respect to the awarding of a federal grant or cooperative agreement, subgrant, contract, subcontract, or loan, or with respect to actions such as renewing, extending, or modifying any such award. See 31 U.S.C. 1352. Certain exceptions to this law apply, including an exception that applies to Indian tribes and tribal organizations. Should any question arise as to whether a particular use of federal funds by a recipient (or subrecipient) would or might fall within the scope of these prohibitions, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. Compliance with general appropriations-law restrictions on the use of federal funds (FY 2019) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable restrictions on the use of federal funds set out in federal appropriations statutes. Pertinent restrictions, including from various "general provisions" in the Consolidated Appropriations Act, 2019, are set out at https://ojp.gov/funding/Explore/FY19AppropriationsRestrictions.htm, and are incorporated by reference here. Should a question arise as to whether a particular use of federal funds by a recipient (or a subrecipient) would or might fall within the scope of an appropriations-law restriction, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. Reporting potential fraud, waste, and abuse, and similar misconduct The recipient and any subrecipients ("subgrantees") must promptly refer to the DOJ Office of the Inspector General (OIG) any credible evidence that a principal, employee, agent, subrecipient, contractor, subcontractor, or other person has, in connection with funds under this award -- (1) submitted a claim that violates the False Claims Act; or (2) committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct. Potential fraud, waste, abuse, or misconduct involving or relating to funds under this award should be reported to the OIG by--(1) online submission accessible via the OIG webpage at https://oig.justice.gov/hotline/contact-grants.htm (select "Submit Report Online"); (2) mail directed to: Office of the Inspector General, U.S. Department of Justice, Investigations Division, 1425 New York Avenue, N.W. Suite 7100, Washington, DC 20530; and/or (3) by facsimile directed to the DOJ OIG Fraud Detection Office (Attn: Grantee Reporting) at (202) 616-9881 (fax). Additional information is available from the DOJ OIG website at https://oig.justice.gov/hotline. 24. 25. 26. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 11 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Restrictions and certifications regarding non-disclosure agreements and related matters No recipient or subrecipient ("subgrantee") under this award, or entity that receives a procurement contract or subcontract with any funds under this award, may require any employee or contractor to sign an internal confidentiality agreement or statement that prohibits or otherwise restricts, or purports to prohibit or restrict, the reporting (in accordance with law) of waste, fraud, or abuse to an investigative or law enforcement representative of a federal department or agency authorized to receive such information. The foregoing is not intended, and shall not be understood by the agency making this award, to contravene requirements applicable to Standard Form 312 (which relates to classified information), Form 4414 (which relates to sensitive compartmented information), or any other form issued by a federal department or agency governing the nondisclosure of classified information. 1. In accepting this award, the recipient-- a. represents that it neither requires nor has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and b. certifies that, if it learns or is notified that it is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency. 2. If the recipient does or is authorized under this award to make subawards ("subgrants"), procurement contracts, or both-- a. it represents that-- (1) it has determined that no other entity that the recipient's application proposes may or will receive award funds (whether through a subaward ("subgrant"), procurement contract, or subcontract under a procurement contract) either requires or has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and (2) it has made appropriate inquiry, or otherwise has an adequate factual basis, to support this representation; and b. it certifies that, if it learns or is notified that any subrecipient, contractor, or subcontractor entity that receives funds under this award is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds to or by that entity, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency. 27. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 12 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Compliance with 41 U.S.C. 4712 (including prohibitions on reprisal; notice to employees) The recipient (and any subrecipient at any tier) must comply with, and is subject to, all applicable provisions of 41 U.S.C. 4712, including all applicable provisions that prohibit, under specified circumstances, discrimination against an employee as reprisal for the employee's disclosure of information related to gross mismanagement of a federal grant, a gross waste of federal funds, an abuse of authority relating to a federal grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal grant. The recipient also must inform its employees, in writing (and in the predominant native language of the workforce), of employee rights and remedies under 41 U.S.C. 4712. Should a question arise as to the applicability of the provisions of 41 U.S.C. 4712 to this award, the recipient is to contact the DOJ awarding agency (OJP or OVW, as appropriate) for guidance. Encouragement of policies to ban text messaging while driving Pursuant to Executive Order 13513, "Federal Leadership on Reducing Text Messaging While Driving," 74 Fed. Reg. 51225 (October 1, 2009), DOJ encourages recipients and subrecipients ("subgrantees") to adopt and enforce policies banning employees from text messaging while driving any vehicle during the course of performing work funded by this award, and to establish workplace safety policies and conduct education, awareness, and other outreach to decrease crashes caused by distracted drivers. Requirement to disclose whether recipient is designated "high risk" by a federal grant-making agency outside of DOJ If the recipient is designated "high risk" by a federal grant-making agency outside of DOJ, currently or at any time during the course of the period of performance under this award, the recipient must disclose that fact and certain related information to OJP by email at OJP.ComplianceReporting@ojp.usdoj.gov. For purposes of this disclosure, high risk includes any status under which a federal awarding agency provides additional oversight due to the recipient's past performance, or other programmatic or financial concerns with the recipient. The recipient's disclosure must include the following: 1. The federal awarding agency that currently designates the recipient high risk, 2. The date the recipient was designated high risk, 3. The high-risk point of contact at that federal awarding agency (name, phone number, and email address), and 4. The reasons for the high-risk status, as set out by the federal awarding agency. 28. 29. 30. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 13 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Noninterference (within the funded "program or activity") with federal law enforcement: 8 U.S.C. 1373 and 1644; ongoing compliance 1. With respect to the "program or activity" funded in whole or part under this award (including any such program or activity of any subrecipient at any tier), throughout the period of performance, no State or local government entity, - agency, or -official may prohibit or in any way restrict-- (1) any government entity or -official from sending or receiving information regarding citizenship or immigration status as described in 8 U.S.C. 1373(a); or (2) a government entity or -agency from sending, requesting or receiving, maintaining, or exchanging information regarding immigration status as described in either 8 U.S.C. 1373(b) or 1644. Any prohibition (or restriction) that violates this condition is an "information-communication restriction" under this award. 2. The recipient's monitoring responsibilities include monitoring of subrecipient compliance with the requirements of this condition. 3. Allowable costs. Compliance with these requirements is an authorized and priority purpose of this award. To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) that the recipient, or any subrecipient at any tier that is a State, a local government, or a public institution of higher education, incurs to implement this condition. 4. Rules of Construction A. For purposes of this condition: (1) "State" and "local government" include any agency or other entity thereof, but not any institution of higher education or any Indian tribe. (2) A "public" institution of higher education is defined as one that is owned, controlled, or directly funded (in whole or in substantial part) by a State or local government. (Such a public institution is considered to be a "government entity," and its officials to be "government officials.") (3) "Program or activity" means what it means under title VI of the Civil Rights Act of 1964 (see 42 U.S.C. 2000d-4a). (4) "Immigration status" means what it means under 8 U.S.C. 1373 and 8 U.S.C. 1644; and terms that are defined in 8 U.S.C. 1101 mean what they mean under that section 1101, except that "State" also includes American Samoa. (5) Pursuant to the provisions set out at (or referenced in) 8 U.S.C. 1551 note ("Abolition ... and Transfer of Functions"), references to the "Immigration and Naturalization Service" in 8 U.S.C. 1373 and 1644 are to be read as references to particular components of the Department of Homeland Security (DHS). B. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, any State or local government, any public institution of higher education, or any other entity (or individual) to violate any federal law, including any applicable civil rights or nondiscrimination law. IMPORTANT NOTE: Any questions about the meaning or scope of this condition should be directed to OJP, before award acceptance. 31. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 14 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS No use of funds to interfere with federal law enforcement: 8 U.S.C. 1373 and 1644; ongoing compliance 1. Throughout the period of performance, no State or local government entity, -agency, or -official may use funds under this award (including under any subaward, at any tier) to prohibit or in any way restrict-- (1) any government entity or -official from sending or receiving information regarding citizenship or immigration status as described in 8 U.S.C. 1373(a); or (2) a government entity or -agency from sending, requesting or receiving, maintaining, or exchanging information regarding immigration status as described in either 8 U.S.C. 1373(b) or 1644. Any prohibition (or restriction) that violates this condition is an "information-communication restriction" under this award. 2. The recipient's monitoring responsibilities include monitoring of subrecipient compliance with the requirements of this condition. 3. Allowable costs. Compliance with these requirements is an authorized and priority purpose of this award. To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) that the recipient, or any subrecipient at any tier that is a State, a local government, or a public institution of higher education, incurs to implement this condition. 4. Rules of Construction. Both the "Rules of Construction" and the "Important Note" set out in the "Noninterference (within the funded "program or activity") with federal law enforcement: 8 U.S.C. 1373 and 1644; ongoing compliance" condition are incorporated by reference as though set forth here in full. 32. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 15 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Authority to obligate award funds contingent on noninterference (within the funded "program or activity") with federal law enforcement: 8 U.S.C. 1373 and 1644; unallowable costs; notification 1. If the recipient is a "State," a local government, or a "public" institution of higher education: A. The recipient may not obligate award funds if, at the time of the obligation, the "program or activity" of the recipient (or of any subrecipient at any tier that is a State, a local government, or a public institution of higher education) that is funded in whole or in part with award funds is subject to any "information-communication restriction." B. In addition, with respect to any project costs it incurs "at risk," the recipient may not obligate award funds to reimburse itself if -- at the time it incurs such costs -- the program or activity of the recipient (or of any subrecipient at any tier that is a State, a local government, or a public institution of higher education) that would be reimbursed in whole or in part with award funds was subject to any information-communication restriction. C. Any drawdown of award funds by the recipient shall be considered, for all purposes, to be a material representation by the recipient to OJP that, as of the date the recipient requests the drawdown, the recipient and each subrecipient (regardless of tier) that is a State, local government, or public institution of higher education, is in compliance with the award condition entitled "Noninterference (within the funded 'program or activity') with federal law enforcement: 8 U.S.C. 1373 and 1644; ongoing compliance." D. The recipient must promptly notify OJP (in writing) if the recipient, from its requisite monitoring of compliance with award conditions or otherwise, has credible evidence that indicates that the funded program or activity of the recipient, or of any subrecipient at any tier that is either a State or a local government or a public institution of higher education, may be subject to any information-communication restriction. In addition, any subaward (at any tier) to a subrecipient that is a State, a local government, or a public institution of higher education must require prompt notification to the entity that made the subaward, should the subrecipient have such credible evidence regarding an information-communication restriction. 2. Any subaward (at any tier) to a subrecipient that is a State, a local government, or a public institution of higher education must provide that the subrecipient may not obligate award funds if, at the time of the obligation, the program or activity of the subrecipient (or of any further such subrecipient at any tier) that is funded in whole or in part with award funds is subject to any information-communication restriction. 3. Absent an express written determination by DOJ to the contrary, based upon a finding by DOJ of compelling circumstances (e.g., a small amount of award funds obligated by the recipient at the time of a subrecipient's minor and transitory non-compliance, which was unknown to the recipient despite diligent monitoring), any obligations of award funds that, under this condition, may not be made shall be unallowable costs for purposes of this award. In making any such determination, DOJ will give great weight to evidence submitted by the recipient that demonstrates diligent monitoring of subrecipient compliance with the requirements set out in the "Noninterference ... 8 U.S.C. 1373 and 1644; ongoing compliance" award condition. 4. Rules of Construction A. For purposes of this condition "information-communication restriction" has the meaning set out in the "Noninterference ... 8 U.S.C. 1373 and 1644; ongoing compliance" condition. B. Both the "Rules of Construction" and the "Important Note" set out in the "Noninterference ... 8 U.S.C. 1373 and 1644; ongoing compliance" condition are incorporated by reference as though set forth here in full. 33. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 16 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Authority to obligate award funds contingent on no use of funds to interfere with federal law enforcement: 8 U.S.C. 1373 and 1644; unallowable costs; notification 1. If the recipient is a "State," a local government, or a "public" institution of higher education: A. The recipient may not obligate award funds if, at the time of the obligation, the "program or activity" of the recipient (or of any subrecipient at any tier that is a State, a local government, or a public institution of higher education) that is funded in whole or in part with award funds is subject to any "information-communication restriction." B. In addition, with respect to any project costs it incurs "at risk," the recipient may not obligate award funds to reimburse itself if -- at the time it incurs such costs -- the program or activity of the recipient (or of any subrecipient at any tier that is a State, a local government, or a public institution of higher education) that would be reimbursed in whole or in part with award funds was subject to any information-communication restriction. C. Any drawdown of award funds by the recipient shall be considered, for all purposes, to be a material representation by the recipient to OJP that, as of the date the recipient requests the drawdown, the recipient and each subrecipient (regardless of tier) that is a State, local government, or public institution of higher education, is in compliance with the award condition entitled "No use of funds to interfere with federal law enforcement: 8 U.S.C. 1373 and 1644; ongoing compliance." D. The recipient must promptly notify OJP (in writing) if the recipient, from its requisite monitoring of compliance with award conditions or otherwise, has credible evidence that indicates that the funded program or activity of the recipient, or of any subrecipient at any tier that is either a State or a local government or a public institution of higher education, may be subject to any information-communication restriction. In addition, any subaward (at any tier) to a subrecipient that is a State, a local government, or a public institution of higher education must require prompt notification to the entity that made the subaward, should the subrecipient have such credible evidence regarding an information-communication restriction. 2. Any subaward (at any tier) to a subrecipient that is a State, a local government, or a public institution of higher education must provide that the subrecipient may not obligate award funds if, at the time of the obligation, the program or activity of the subrecipient (or of any further such subrecipient at any tier) that is funded in whole or in part with award funds is subject to any information-communication restriction. 3. Absent an express written determination by DOJ to the contrary, based upon a finding by DOJ of compelling circumstances (e.g., a small amount of award funds obligated by the recipient at the time of a subrecipient's minor and transitory non-compliance, which was unknown to the recipient despite diligent monitoring), any obligations of award funds that, under this condition, may not be made shall be unallowable costs for purposes of this award. In making any such determination, DOJ will give great weight to evidence submitted by the recipient that demonstrates diligent monitoring of subrecipient compliance with the requirements set out in the "No use of funds to interfere … 8 U.S.C. 1373 and 1644; ongoing compliance" award condition. 4. Rules of Construction. The "Rules of Construction" set out in the "Authority to obligate award funds contingent on noninterference (within the funded "program or activity") with federal law enforcement: 8 U.S.C. 1373 and 1644; unallowable costs; notification" condition are incorporated by reference as though set forth here in full. 34. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 17 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Noninterference (within the funded "program or activity") with federal law enforcement: No public disclosure of certain law enforcement sensitive information SCOPE. This condition applies with respect to the "program or activity" that is funded (in whole or in part) by the award, as of the date the recipient accepts this award, and throughout the remainder of the period of performance. Its provisions must be among those included in any subaward (at any tier). 1. Noninterference: No public disclosure of federal law enforcement information in order to conceal, harbor, or shield Consistent with the purposes and objectives of federal law enforcement statutes and federal criminal law (including 8 U.S.C. 1324 and 18 U.S.C. chs. 1, 49, 227), no public disclosure may be made of any federal law enforcement information in a direct or indirect attempt to conceal, harbor, or shield from detection any fugitive from justice under 18 U.S.C. ch. 49, or any alien who has come to, entered, or remains in the United States in violation of 8 U.S.C. ch. 12 -- without regard to whether such disclosure would constitute (or could form a predicate for) a violation of 18 U.S.C. 1071 or 1072 or of 8 U.S.C. 1324(a). 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions (e.g., training) designed to ensure compliance with this condition. 4. Rules of construction A. For purposes of this condition-- (1) the term "alien" means what it means under section 101 of the Immigration and Nationality Act (see 8 U.S.C. 1101(a)(3)); (2) the term "federal law enforcement information" means law enforcement sensitive information communicated or made available, by the federal government, to a State or local government entity, -agency, or -official, through any means, including, without limitation-- (1) through any database, (2) in connection with any law enforcement partnership or -task-force, (3) in connection with any request for law enforcement assistance or -cooperation, or (4) through any deconfliction (or courtesy) notice of planned, imminent, commencing, continuing, or impending federal law enforcement activity; (3) the term "law enforcement sensitive information" means records or information compiled for any law enforcement purpose; and (4) the term "public disclosure" means any communication or release other than one-- (a) within the recipient, or (b) to any subrecipient (at any tier) that is a government entity. B. Both the "Rules of Construction" and the "Important Note" set out in the "Noninterference (within the funded 'program or activity') with federal law enforcement: 8 U.S.C. 1373 and 1644 and ongoing compliance" award condition are incorporated by reference as though set forth here in full. 35. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 18 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS No use of funds to interfere with federal law enforcement: No public disclosure of certain law enforcement sensitive information SCOPE. This condition applies as of the date the recipient accepts this award, and throughout the remainder of the period of performance. Its provisions must be among those included in any subaward (at any tier). 1. No use of funds to interfere: No public disclosure of federal law enforcement information in order to conceal, harbor, or shield Consistent with the purposes and objectives of federal law enforcement statutes and federal criminal law (including 8 U.S.C. 1324 and 18 U.S.C. chs. 1, 49, 227), no funds under this award may be used to make any public disclosure of any federal law enforcement information in a direct or indirect attempt to conceal, harbor, or shield from detection any fugitive from justice under 18 U.S.C. ch. 49, or any alien who has come to, entered, or remains in the United States in violation of 8 U.S.C. ch. 12 -- without regard to whether such disclosure would constitute (or could form a predicate for) a violation of 18 U.S.C. 1071 or 1072 or of 8 U.S.C. 1324(a). 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions (e.g., training) designed to ensure compliance with this condition. 4. Rules of construction. The "Rules of Construction" set out in the "Noninterference (within the funded "program or activity") with federal law enforcement: No public disclosure of certain law enforcement sensitive information" award condition are incorporated by reference as though set forth here in full. 36. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 19 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Noninterference (within the funded "program or activity") with federal law enforcement: Interrogation of certain aliens SCOPE. This condition applies with respect to the "program or activity" that is funded (in whole or in part) by this award, as of the date the recipient accepts this award, and throughout the remainder of the period of performance for the award. Its provisions must be among those included in any subaward (at any tier). 1. Noninterference with statutory law enforcement access to correctional facilities Consonant with federal law enforcement statutes and regulations -- including 8 U.S.C. 1357(a), under which certain federal officers and employees "have power without warrant ... to interrogate any alien or person believed to be an alien as to his right to be or to remain in the United States," and 8 C.F.R. 287.5(a), under which that power may be exercised "anywhere in or outside the United States" -- within the funded program or activity, no State or local government entity, -agency, or -official may interfere with the exercise of that power to interrogate "without warrant" (by agents of the United States acting under color of federal law) by impeding access to any State or local government (or government-contracted) correctional facility by such agents for the purpose of "interrogat[ing] any alien or person believed to be an alien as to his [or her] right to be or to remain in the United States." 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions (e.g., training) designed to ensure compliance with this condition. 4. Rules of construction A. For purposes of this condition: (1) The term "alien" means what it means under section 101 of the Immigration and Nationality Act (INA) (see 8 U.S.C. 1101(a)(3)). (2) The term "correctional facility" means what it means under the title I of the Omnibus Crime Control and Safe Streets Act of 1968 (see 34 U.S.C. 10251(a)(7)). (3) The term "impede" includes taking or continuing any action, or implementing or maintaining any law, policy, rule, or practice, that— (a) is designed to prevent or to significantly delay or complicate, or (b) has the effect of preventing or of significantly delaying or complicating. B. Both the "Rules of Construction" and the "Important Note" set out in the "Noninterference (within the funded 'program or activity') with federal law enforcement: 8 U.S.C. 1373 and 1644 and ongoing compliance" award condition are incorporated by reference as though set forth here in full. 37. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 20 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS No use of funds to interfere with federal law enforcement: Interrogation of certain aliens SCOPE. This condition applies as of the date the recipient accepts this award, and throughout the remainder of the period of performance for the award. Its provisions must be among those included in any subaward (at any tier). 1. No use of funds to interfere with statutory law enforcement access to correctional facilities Consonant with federal law enforcement statutes and regulations -- including 8 U.S.C. 1357(a), under which certain federal officers and employees "have power without warrant ... to interrogate any alien or person believed to be an alien as to his right to be or to remain in the United States," and 8 C.F.R. 287.5(a), under which that power may be exercised "anywhere in or outside the United States" -- no State or local government entity, -agency, or -official may use funds under this award to interfere with the exercise of that power to interrogate "without warrant" (by agents of the United States acting under color of federal law) by impeding access to any State or local government (or government- contracted) correctional facility by such agents for the purpose of "interrogat[ing] any alien or person believed to be an alien as to his [or her] right to be or to remain in the United States." 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions (e.g., training) designed to ensure compliance with this condition. 4. Rules of construction. The "Rules of Construction" set out in the "Noninterference (within the funded "program or activity") with federal law enforcement: Interrogation of certain aliens" award condition are incorporated by reference as though set forth here in full. 38. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 21 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Noninterference (within the funded "program or activity") with federal law enforcement: Notice of scheduled release SCOPE. This condition applies with respect to the "program or activity" that is funded (in whole or in part) by the award, as of the date the recipient accepts the award, and throughout the remainder of the period of performance. Its provisions must be among those included in any subaward at any tier. 1. Noninterference with "removal" process: Notice of scheduled release date and time Consonant with federal law enforcement statutes -- including 8 U.S.C. 1231 (for an alien incarcerated by a State or local government, a 90-day "removal period" during which the federal government "shall" detain and then "shall" remove an alien from the U.S. "begins" no later than "the date the alien is released from ... confinement"; also, the federal government is expressly authorized to make payments to a "State or a political subdivision of the State ... with respect to the incarceration of [an] undocumented criminal alien"); 8 U.S.C. 1226 (the federal government "shall take into custody" certain criminal aliens "when the alien is released"); and 8 U.S.C. 1366 (requiring an annual DOJ report to Congress on "the number of illegal alien[ felons] in Federal and State prisons" and programs underway "to ensure the prompt removal" from the U.S. of removable "criminal aliens") -- within the funded program or activity, no State or local government entity, -agency, or -official (including a government-contracted correctional facility) may interfere with the "removal" process by failing to provide -- as early as practicable (see para. 4.C. below) -- advance notice to DHS of the scheduled release date and time for a particular alien, if a State or local government (or government- contracted) correctional facility receives from DHS a formal written request pursuant to the INA that seeks such advance notice. 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions (e.g., training) designed to ensure compliance with this condition. 4. Rules of construction A. The "Rules of Construction" set out in the "Noninterference (within the funded "program or activity") with federal law enforcement: Interrogation of certain aliens" award condition are incorporated by reference as though set forth here in full. B. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, any State or local government, or any other entity or individual to maintain (or detain) any individual in custody beyond the date and time the individual otherwise would have been released. C. Applicability (1) Current DHS practice is ordinarily to request advance notice of scheduled release "as early as practicable (at least 48 hours, if possible)." (See DHS Form I-247A (3/17)). If (e.g., in light of the date DHS made such request) the scheduled release date and time for an alien are such as not to allow for the advance notice that DHS has requested, it shall NOT be a violation of this condition to provide only as much advance notice as practicable. (2) Current DHS practice is to use the same form for a second, distinct purpose -- to request that an individual be detained for up to 48 hours AFTER the scheduled release. This condition does NOT encompass such DHS requests for detention. 39. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 22 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS No use of funds to interfere with federal law enforcement: Notice of scheduled release SCOPE. This condition applies as of the date the recipient accepts the award, and throughout the remainder of the period of performance. Its provisions must be among those included in any subaward at any tier. 1. No use of funds to interfere with "removal" process: Notice of scheduled release date and time Consonant with federal law enforcement statutes -- including 8 U.S.C. 1231 (for an alien incarcerated by a State or local government, a 90-day "removal period" during which the federal government "shall" detain and then "shall" remove an alien from the U.S. "begins" no later than "the date the alien is released from ... confinement"; also, the federal government is expressly authorized to make payments to a "State or a political subdivision of the State ... with respect to the incarceration of [an] undocumented criminal alien"); 8 U.S.C. 1226 (the federal government "shall take into custody" certain criminal aliens "when the alien is released"); and 8 U.S.C. 1366 (requiring an annual DOJ report to Congress on "the number of illegal alien[ felons] in Federal and State prisons" and programs underway "to ensure the prompt removal" from the U.S. of removable "criminal aliens") -- no State or local government entity, -agency, or - official (including a government-contracted correctional facility) may use funds under this award to interfere with the "removal" process by failing to provide -- as early as practicable (see para. 4.C. below) -- advance notice to DHS of the scheduled release date and time for a particular alien, if a State or local government (or government-contracted) correctional facility receives from DHS a formal written request pursuant to the INA that seeks such advance notice. 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions (e.g., training) designed to ensure compliance with this condition. 4. Rules of construction. The "Rules of Construction" set out in the "Noninterference (within the funded "program or activity") with federal law enforcement: Notice of scheduled release" award condition are incorporated by reference as though set forth here in full. Requirement to collect certain information from subrecipients Except as provided in this condition, the recipient may not make a subaward to a State, a local government, or a "public" institution of higher education, unless it first obtains from the proposed subrecipient responses to the questions identified in the program solicitation as "Information regarding Communication with the Department of Homeland Security (DHS) and/or Immigration and Customs Enforcement (ICE)." All subrecipient responses must be collected and maintained by the recipient, consistent with document retention requirements, and must be made available to DOJ upon request. Responses to these questions are not required from subrecipients that are either a tribal government/organization, a nonprofit organization, or a private institution of higher education. 40. 41. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 23 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Cooperating with OJP Monitoring The recipient agrees to cooperate with OJP monitoring of this award pursuant to OJP's guidelines, protocols, and procedures, and to cooperate with OJP (including the grant manager for this award and the Office of Chief Financial Officer (OCFO)) requests related to such monitoring, including requests related to desk reviews and/or site visits. The recipient agrees to provide to OJP all documentation necessary for OJP to complete its monitoring tasks, including documentation related to any subawards made under this award. Further, the recipient agrees to abide by reasonable deadlines set by OJP for providing the requested documents. Failure to cooperate with OJP's monitoring activities may result in actions that affect the recipient's DOJ awards, including, but not limited to: withholdings and/or other restrictions on the recipient's access to award funds; referral to the DOJ OIG for audit review; designation of the recipient as a DOJ High Risk grantee; or termination of an award(s). FFATA reporting: Subawards and executive compensation The recipient must comply with applicable requirements to report first-tier subawards ("subgrants") of $25,000 or more and, in certain circumstances, to report the names and total compensation of the five most highly compensated executives of the recipient and first-tier subrecipients (first-tier "subgrantees") of award funds. The details of recipient obligations, which derive from the Federal Funding Accountability and Transparency Act of 2006 (FFATA), are posted on the OJP web site at https://ojp.gov/funding/Explore/FFATA.htm (Award condition: Reporting Subawards and Executive Compensation), and are incorporated by reference here. This condition, including its reporting requirement, does not apply to-- (1) an award of less than $25,000, or (2) an award made to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). Required monitoring of subawards The recipient must monitor subawards under this award in accordance with all applicable statutes, regulations, award conditions, and the DOJ Grants Financial Guide, and must include the applicable conditions of this award in any subaward. Among other things, the recipient is responsible for oversight of subrecipient spending and monitoring of specific outcomes and benefits attributable to use of award funds by subrecipients. The recipient agrees to submit, upon request, documentation of its policies and procedures for monitoring of subawards under this award. Use of program income Program income (as defined in the Part 200 Uniform Requirements) must be used in accordance with the provisions of the Part 200 Uniform Requirements. Program income earnings and expenditures both must be reported on the quarterly Federal Financial Report, SF 425. Justice Information Sharing Information sharing projects funded under this award must comply with DOJ's Global Justice Information Sharing Initiative (Global) guidelines. The recipient (and any subrecipient at any tier) must conform to the Global Standards Package (GSP) and all constituent elements, where applicable, as described at: https:/ / it.ojp.gov/ gsp_grantcondition. The recipient (and any subrecipient at any tier) must document planned approaches to information sharing and describe compliance with the GSP and appropriate privacy policy that protects shared information, or provide detailed justification for why an alternative approach is recommended. 42. 43. 44. 45. 46. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 24 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Avoidance of duplication of networks To avoid duplicating existing networks or IT systems in any initiatives funded by BJA for law enforcement information sharing systems which involve interstate connectivity between jurisdictions, such systems shall employ, to the extent possible, existing networks as the communication backbone to achieve interstate connectivity, unless the recipient can demonstrate to the satisfaction of BJA that this requirement would not be cost effective or would impair the functionality of an existing or proposed IT system. Compliance with 28 C.F.R. Part 23 With respect to any information technology system funded or supported by funds under this award, the recipient (and any subrecipient at any tier) must comply with 28 C.F.R. Part 23, Criminal Intelligence Systems Operating Policies, if OJP determines this regulation to be applicable. Should OJP determine 28 C.F.R. Part 23 to be applicable, OJP may, at its discretion, perform audits of the system, as per the regulation. Should any violation of 28 C.F.R. Part 23 occur, the recipient may be fined as per 34 U.S.C. 10231(c)-(d). The recipient may not satisfy such a fine with federal funds. Protection of human research subjects The recipient (and any subrecipient at any tier) must comply with the requirements of 28 C.F.R. Part 46 and all OJP policies and procedures regarding the protection of human research subjects, including obtainment of Institutional Review Board approval, if appropriate, and subject informed consent. Confidentiality of data The recipient (and any subrecipient at any tier) must comply with all confidentiality requirements of 34 U.S.C. 10231 and 28 C.F.R. Part 22 that are applicable to collection, use, and revelation of data or information. The recipient further agrees, as a condition of award approval, to submit a Privacy Certificate that is in accord with requirements of 28 C.F.R. Part 22 and, in particular, 28 C.F.R. 22.23. Verification and updating of recipient contact information The recipient must verify its Point of Contact(POC), Financial Point of Contact (FPOC), and Authorized Representative contact information in GMS, including telephone number and e-mail address. If any information is incorrect or has changed, a Grant Adjustment Notice (GAN) must be submitted via the Grants Management System (GMS) to document changes. 47. 48. 49. 50. 51. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 25 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Law enforcement task forces - required training Within 120 days of award acceptance, each current member of a law enforcement task force funded with award funds who is a task force commander, agency executive, task force officer, or other task force member of equivalent rank, must complete required online (internet-based) task force training. Additionally, all future task force members must complete this training once during the period of performance for this award, or once every four years if multiple OJP awards include this requirement. The required training is available free of charge online through the BJA-funded Center for Task Force Integrity and Leadership (www.ctfli.org). The training addresses task force effectiveness, as well as other key issues including privacy and civil liberties/rights, task force performance measurement, personnel selection, and task force oversight and accountability. If award funds are used to support a task force, the recipient must compile and maintain a task force personnel roster, along with course completion certificates. Additional information regarding the training is available through BJA's web site and the Center for Task Force Integrity and Leadership (www.ctfli.org). Justification of consultant rate Approval of this award does not indicate approval of any consultant rate in excess of $650 per day. A detailed justification must be submitted to and approved by the OJP program office prior to obligation or expenditure of such funds. Submission of eligible records relevant to the National Instant Background Check System Consonant with federal statutes that pertain to firearms and background checks -- including 18 U.S.C. 922 and 34 U.S.C. ch. 409 -- if the recipient (or any subrecipient at any tier) uses this award to fund (in whole or in part) a specific project or program (such as a law enforcement, prosecution, or court program) that results in any court dispositions, information, or other records that are "eligible records" (under federal or State law) relevant to the National Instant Background Check System (NICS), or that has as one of its purposes the establishment or improvement of records systems that contain any court dispositions, information, or other records that are "eligible records" (under federal or State law) relevant to the NICS, the recipient (or subrecipient, if applicable) must ensure that all such court dispositions, information, or other records that are "eligible records" (under federal or State law) relevant to the NICS are promptly made available to the NICS or to the "State" repository/database that is electronically available to (and accessed by) the NICS, and -- when appropriate -- promptly must update, correct, modify, or remove such NICS- relevant "eligible records". In the event of minor and transitory non-compliance, the recipient may submit evidence to demonstrate diligent monitoring of compliance with this condition (including subrecipient compliance). DOJ will give great weight to any such evidence in any express written determination regarding this condition. 52. 53. 54. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 26 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Compliance with National Environmental Policy Act and related statutes Upon request, the recipient (and any subrecipient at any tier) must assist BJA in complying with the National Environmental Policy Act (NEPA), the National Historic Preservation Act, and other related federal environmental impact analyses requirements in the use of these award funds, either directly by the recipient or by a subrecipient. Accordingly, the recipient agrees to first determine if any of the following activities will be funded by the grant, prior to obligating funds for any of these purposes. If it is determined that any of the following activities will be funded by the award, the recipient agrees to contact BJA. The recipient understands that this condition applies to new activities as set out below, whether or not they are being specifically funded with these award funds. That is, as long as the activity is being conducted by the recipient, a subrecipient, or any third party, and the activity needs to be undertaken in order to use these award funds, this condition must first be met. The activities covered by this condition are: a. New construction; b. Minor renovation or remodeling of a property located in an environmentally or historically sensitive area, including properties located within a 100-year flood plain, a wetland, or habitat for endangered species, or a property listed on or eligible for listing on the National Register of Historic Places; c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change in its basic prior use or (b) significantly change its size; d. Implementation of a new program involving the use of chemicals other than chemicals that are (a) purchased as an incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or education environments; and e. Implementation of a program relating to clandestine methamphetamine laboratory operations, including the identification, seizure, or closure of clandestine methamphetamine laboratories. The recipient understands and agrees that complying with NEPA may require the preparation of an Environmental Assessment and/or an Environmental Impact Statement, as directed by BJA. The recipient further understands and agrees to the requirements for implementation of a Mitigation Plan, as detailed at https://bja.gov/Funding/nepa.html, for programs relating to methamphetamine laboratory operations. Application of This Condition to Recipient's Existing Programs or Activities: For any of the recipient's or its subrecipients' existing programs or activities that will be funded by these award funds, the recipient, upon specific request from BJA, agrees to cooperate with BJA in any preparation by BJA of a national or program environmental assessment of that funded program or activity. Establishment of trust fund If award funds are being drawn down in advance, the recipient (or a subrecipient, with respect to a subaward) is required to establish a trust fund account. Recipients (and subrecipients) must maintain advance payments of federal awards in interest-bearing accounts, unless regulatory exclusions apply (2 C.F.R. 200.305(b)(8)). The trust fund, including any interest, may not be used to pay debts or expenses incurred by other activities beyond the scope of the Edward Byrne Memorial Justice Assistance Grant Program (JAG). The recipient also agrees to obligate the award funds in the trust fund (including any interest earned) during the period of performance for the award and expend within 90 days thereafter. Any unobligated or unexpended funds, including interest earned, must be returned to OJP at the time of closeout. 55. 56. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 27 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Prohibition on use of award funds for match under BVP program JAG funds may not be used as the 50% match for purposes of the DOJ Bulletproof Vest Partnership (BVP) program. Certification of body armor "mandatory wear" policies If recipient uses funds under this award to purchase body armor, the recipient must submit a signed certification that law enforcement agencies receiving body armor purchased with funds from this award have a written "mandatory wear" policy in effect. The recipient must keep signed certifications on file for any subrecipients planning to utilize funds from this award for ballistic-resistant and stab-resistant body armor purchases. This policy must be in place for at least all uniformed officers before any funds from this award may be used by an agency for body armor. There are no requirements regarding the nature of the policy other than it be a mandatory wear policy for all uniformed officers while on duty. Body armor - compliance with NIJ standards and other requirements Ballistic-resistant and stab-resistant body armor purchased with JAG award funds may be purchased at any threat level, make or model, from any distributor or manufacturer, as long as the body armor has been tested and found to comply with applicable National Institute of Justice ballistic or stab standards and is listed on the NIJ Compliant Body Armor Model List (https://nij.gov/topics/technology/body-armor/Pages/compliant-ballistic-armor.aspx). In addition, ballistic-resistant and stab-resistant body armor purchased must be made in the United States and must be uniquely fitted, as set forth in 34 U.S.C. 10202(c)(1)(A). The latest NIJ standard information can be found here: https:/ / nij.gov/ topics/ technology/ body-armor/ pages/ safety-initiative.aspx. Body armor - impact on eligibility for other program funds The recipient understands that the use of funds under this award for purchase of body armor may impact eligibility for funding under the Bulletproof Vest Partnership (BVP) program, a separate program operated by BJA, pursuant to the BVP statute at 34 USC 10531(c)(5). Reporting requirements The recipient must submit quarterly Federal Financial Reports (SF-425) and semi-annual performance reports through OJP's GMS (https://grants.ojp.usdoj.gov). Consistent with the Department's responsibilities under the Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010, the recipient must provide data that measure the results of its work. The recipient must submit quarterly performance metrics reports through BJA's Performance Measurement Tool (PMT) website (www.bjaperformancetools.org). For more detailed information on reporting and other JAG requirements, refer to the JAG reporting requirements webpage. Failure to submit required JAG reports by established deadlines may result in the freezing of grant funds and future High Risk designation. Required data on law enforcement agency training Any law enforcement agency receiving direct or sub-awarded funding from this JAG award must submit quarterly accountability metrics data related to training that officers have received on the use of force, racial and ethnic bias, de- escalation of conflict, and constructive engagement with the public. 57. 58. 59. 60. 61. 62. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 28 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Expenditures prohibited without waiver No funds under this award may be expended on the purchase of items prohibited by the JAG program statute, unless, as set forth at 34 U.S.C. 10152, the BJA Director certifies that extraordinary and exigent circumstances exist, making such expenditures essential to the maintenance of public safety and good order. Authorization to obligate (federal) award funds to reimburse certain project costs incurred on or after October 1, 2018 The recipient may obligate (federal) award funds only after the recipient makes a valid acceptance of the award. As of the first day of the period of performance for the award (October 1, 2018), however, the recipient may choose to incur project costs using non-federal funds, but any such project costs are incurred at the recipient's risk until, at a minimum-- (1) the recipient makes a valid acceptance of the award, and (2) all applicable withholding conditions are removed by OJP (via a Grant Adjustment Notice). (A withholding condition is a condition in the award document that precludes the recipient from obligating, expending, or drawing down all or a portion of the award funds until the condition is removed.) Except to the extent (if any) that an award condition expressly precludes reimbursement of project costs incurred "at- risk," if and when the recipient makes a valid acceptance of this award and OJP removes each applicable withholding condition through a Grant Adjustment Notice, the recipient is authorized to obligate (federal) award funds to reimburse itself for project costs incurred "at-risk" earlier during the period of performance (such as project costs incurred prior to award acceptance or prior to removal of an applicable withholding condition), provided that those project costs otherwise are allowable costs under the award. Nothing in this condition shall be understood to authorize the recipient (or any subrecipient at any tier) to use award funds to "supplant" State or local funds in violation of the recipient's certification (executed by the chief executive of the State or local government) that federal funds will be used to increase the amounts of such funds that would, in the absence of federal funds, be made available for law enforcement activities. Use of funds for DNA testing; upload of DNA profiles If award funds are used for DNA testing of evidentiary materials, any resulting eligible DNA profiles must be uploaded to the Combined DNA Index System ("CODIS," the DNA database operated by the FBI) by a government DNA laboratory with access to CODIS. No profiles generated under this award may be entered or uploaded into any non-governmental DNA database without prior express written approval from BJA. Award funds may not be used for the purchase of DNA equipment and supplies unless the resulting DNA profiles may be accepted for entry into CODIS. Encouragement of submission of "success stories" BJA strongly encourages the recipient to submit annual (or more frequent) JAG success stories. To submit a success story, sign in to a My BJA account at https:/ / www.bja.gov/ Login.aspx to access the Success Story Submission form. If the recipient does not yet have a My BJA account, please register at https:/ / www.bja.gov/ profile.aspx. Once registered, one of the available areas on the My BJA page will be "My Success Stories." Within this box, there is an option to add a Success Story. Once reviewed and approved by BJA, all success stories will appear on the BJA Success Story web page at https:/ / www.bja.gov/ SuccessStoryList.aspx. 63. 64. 65. 66. OJP FORM 4000/2 (REV. 4-88) 29 AWARD CONTINUATION SHEET Grant PAGE 29 OF U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance AWARD DATE 09/26/2019PROJECT NUMBER 2019-DJ-BX-0569 SPECIAL CONDITIONS Withholding of funds: Budget narrative or information The recipient may not obligate, expend, or draw down any award funds until the recipient submits, and OJP reviews and accepts, the required budget information or narrative for the award, and a Grant Adjustment Notice (GAN) has been issued to remove this condition. Withholding of funds: Program narrative The recipient may not obligate, expend, or draw down any award funds until the recipient submits, and OJP reviews and accepts, the program narrative for this award, and a Grant Adjustment Notice (GAN) has been issued to remove this condition. Withholding of funds: NIBRS set-aside in Disparate jurisdictions The recipient may not obligate, expend, or draw down any award funds until the recipient submits, and BJA reviews and accepts, documentation of compliance with the required NIBRS 3 percent set-aside by the recipient and each disparate subrecipient, and a Grant Adjustment Notice (GAN) has been issued to remove this condition. For each jurisdiction, including the recipient and disparate subrecipients, such documentation may be either (1) a budget that clearly documents that the jurisdiction has dedicated at least 3 percent of the total amount of their allocation to NIBRS compliance activities, or (2) documentation showing that the jurisdiction has been certified as NIBRS compliant. 67. 68. 69. OJP FORM 4000/2 (REV. 4-88) 29 Memorandum To: From: Subject: Washington, D.C. 20531 Orbin Terry, NEPA Coordinator Incorporates NEPA Compliance in Further Developmental Stages for City of Corpus Christi The Edward Byrne Memorial Justice Assistance Grant Program (JAG) allows states and local governments to support a broad range of activities to prevent and control crime and to improve the criminal justice system, some of which could have environmental impacts. All recipients of JAG funding must assist BJA in complying with NEPA and other related federal environmental impact analyses requirements in the use of grant funds, whether the funds are used directly by the grantee or by a subgrantee or third party. Accordingly, prior to obligating funds for any of the specified activities, the grantee must first determine if any of the specified activities will be funded by the grant. The specified activities requiring environmental analysis are: a. New construction; b. Any renovation or remodeling of a property located in an environmentally or historically sensitive area, including properties located within a 100-year flood plain, a wetland, or habitat for endangered species, or a property listed on or eligible for listing on the National Register of Historic Places; c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change in its basic prior use or (b) significantly change its size; d. Implementation of a new program involving the use of chemicals other than chemicals that are (a) purchased as an incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or education environments; and e. Implementation of a program relating to clandestine methamphetamine laboratory operations, including the identification, seizure, or closure of clandestine methamphetamine laboratories. Complying with NEPA may require the preparation of an Environmental Assessment and/or an Environmental Impact Statement, as directed by BJA. Further, for programs relating to methamphetamine laboratory operations, the preparation of a detailed Mitigation Plan will be required. For more information about Mitigation Plan requirements, please see https://www.bja.gov/Funding/nepa.html. Please be sure to carefully review the grant conditions on your award document, as it may contain more specific information about environmental compliance. U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance Official Grant File GRANT MANAGER'S MEMORANDUM, PT. I: PROJECT SUMMARY 1. STAFF CONTACT (Name & telephone number) PROJECT NUMBER 6. NAME & ADRESS OF SUBGRANTEE 7. PROGRAM PERIOD 8. BUDGET PERIOD 9. AMOUNT OF AWARD 10. DATE OF AWARD 11. SECOND YEAR'S BUDGET 2019-DJ-BX-0569 2. PROJECT DIRECTOR (Name, address & telephone number) 4. TITLE OF PROJECT 12. SECOND YEAR'S BUDGET AMOUNT 13. THIRD YEAR'S BUDGET PERIOD 14. THIRD YEAR'S BUDGET AMOUNT 15. SUMMARY DESCRIPTION OF PROJECT (See instruction on reverse) 5. NAME & ADDRESS OF GRANTEE Grant This project is supported under FY19(BJA - JAG State and JAG Local) Title I of Pub. L. No. 90-351 (generally codified at 34 U.S.C. 10151-10726), including subpart 1 of part E (codified at 34 U.S.C. 10151 - 10158); see also 28 U.S.C. 530C(a). Pat Eldridge Management Services Director P.O. Box 9277 Corpus Christi, TX 78469-9016 (361) 886-2696 PAGE 11OF The Edward Byrne Memorial Justice Assistance Grant (JAG) Program allows states and units of local government, including tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one or more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs (other than compensation) and 8) mental health programs and related law enforcement and corrections programs. This JAG award will be used to support criminal justice initiatives that fall under one or more of the allowable program areas above. Funded programs or initiatives may include multijurisdictional drug and gang task forces, crime prevention and domestic violence programs, courts, corrections, treatment, justice information Wendy Y. Rose (202) 514-7842 OJP FORM 4000/2 (REV. 4-88) 2019 Edward Byrne Memorial Justice Assistance Grant City of Corpus Christi 1201 Leopard Street P.O. Box 9277 Corpus Christi, TX 78401 TO:10/01/2018 09/30/2022FROM:TO:10/01/2018 09/30/2022FROM: 09/26/2019 $ 175,175 3b. POMS CODE (SEE INSTRUCTIONS ON REVERSE) 3a. TITLE OF THE PROGRAM BJA FY 19 Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Local Solicitation U.S. Department of Justice Office of Justice Programs Bureau of Justice Assistance sharing initiatives, or other programs aimed at reducing crime and/or enhancing public/officer safety. NCA/NCF DATE: October 29, 2019 TO: Peter Zanoni, City Manager FROM: Peter Collins, Interim Director of Information Technology PeterC@cctexas.com (361) 826-3735 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Ordinance approving the purchase of Harris Public Safety communication radios in an amount not to exceed $3,567,032.20 to be used by the Corpus Christi Police Department from Dailey and Wells Communications, Inc.; appropriating $1,189,010.73, from the unreserved fund balance of the General Fund initially budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. SUMMARY: This ordinance is to approve the purchase with Dailey and Wells Communications, Inc. of San Antonio, Texas, for communication radios for Public Safety and Public Service communications. The purchase includes 770 handheld portable radios and 40 mobile radios that are installed in the vehicles. BACKGROUND AND FINDINGS: The existing Harris EDACS radio system is approaching end-of-life with limited manufacturer support available. Support will become increasingly more difficult by 2020, with heavy reliance on used and salvaged spare parts. It will be necessary to upgrade our radios to ensure availability of a reliable public safety radio system. Purchase of Communication Radios for Public Safety AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting October 29, 2019 Second Reading Ordinance for the City Council Meeting November 12, 2019 Public Safety Radio system is the most important system for Public Safety and Public Service communications. A functional radio system enables Public Safety to respond to emergencies as quick as possible. Public Safety emergencies can unfold quickly, and Public Safety must be prepared to respond to fires, floods, active shootings, accidents, family violence, medical and weather emergencies. A Public Safety Radio system also enables City departments to support public safety and perform their daily tasks in a timely manner. The EDACs/P25 equipment for this system falls under L3 Harris Corporation intellectual property rights and the proprietary protocols represent a patent, copyright or secret process. Therefore, these radios are only available from the manufacturer, L3 Harris Corporation. Dailey and Wells Communications, Inc. has a local service center which has serviced the Harris radios for over 30 years. Also, Dailey and Wells Communications, Inc. provided a 26% discount on the radio upgrades. ALTERNATIVES: An alternative would be not to upgrade the communication radios; however, a public safety radio system is a life line for all first responders and for those who are served which could be the difference between life and death. FISCAL IMPACT: The fiscal impact in FY 2019-2020 is an appropriation of $1,189,010.73, from the unreserved fund balance of the Police General Fund initially budgeted in FY 2019 for this purpose but not encumbered, with the remaining cost of $2,378,021.47 budgeted in future years at a zero % interest rate through the annual budget process. Funding Detail: Fund: 1020 General Fund Organization/Activity: N/A Mission Element: N/A Project # (CIP Only): N/A Account: 251850 Unreserved Fund Balance RECOMMENDATION: Staff recommends approval of this ordinance authorizing a three -year agreement with Dailey and Wells Communications, Inc. for the purchase of communication radios for Public Safety. LIST OF SUPPORTING DOCUMENTS: Ordinance Service Agreement Price Sheet Page 1 of 2 Ordinance approving the purchase of Harris Public Safety communication radios in an amount not to exceed $3,567,032.20 to be used by the Corpus Christi Police Department from Dailey and Wells Communications, Inc.; appropriating $1,189,010.73, from the unreserved fund balance of the General Fund initially budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. WHEREAS, this purchase of 770 portable and 40 mobile communication radios for Public Safety; WHEREAS, State law provides that such procurements, as outlined above, are subject to statutory procurement requirements, including competitive bids, unless an exception applies; WHEREAS, there is a statutory exception for this procurement in Local Government Code, Section 252.022(a) (2), as this purchase is necessary to preserve or protect the public health or safety of the City’s residents. WHEREAS, there is a statutory exception for this procurement in Local Government Code, Section 252.022(a) (7) (D) a procurement of items that are available from only one source, due to captive replacement parts or components for equipment ; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. The funds in the amount of $1,189,010.73 are appropriated from the unreserved fund balance in General Fund No 1020 for the purchase of Harris Public Safety communication radios from Dailey and Wells Communications, Inc. Section 2. That the FY2019-2020 operating budget adopted by Ordinance No. 031870 is amended by increasing expenditures by $1,189,010.73. Section 3. The City Manager, or designee, is authorized to execute all documents necessary to purchase Harris Public Safety communication radios from Dailey and Wells Communications, Inc. on a three-year service agreement, for an amount not to exceed $3,567,032.20. Page 2 of 2 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo________________ Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb _________________ Michael Hunter______________ Roland Barrera _________________ Ben Molina _______________ Rudy Garza _________________ Everett Roy _______________ Paulette M. Guajardo________________ Greg Smith _______________ Gil Hernandez _________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor City of Corpus Christi Contracts and Procurement Department Sr. Buyer: Minerva Alvarado Item Description Quantity Price Ext. Price 1 XL-200 Portable Full Keypad 585 4,306.82$ 2,519,489.70$ 2 Radio Programming 585 37.50$ 21,937.50$ 3 Shipping/Handling 585 12.10$ 7,078.50$ 4 XL-200 Portable Full Keypad UL Haz LOC C1D2 185 4,516.98$ 835,641.30$ 5 Radio Programming 185 37.50$ 6,937.50$ 6 Shipping/Handling 185 12.10$ 2,238.50$ 7 XG-75M Mobile, Scan Model, Remote Mount 40 4,055.23$ 162,209.20$ 8 Radio Programming 40 37.50$ 1,500.00$ 9 Mobile Radio Installation 40 235.00$ 9,400.00$ 10 Shipping/Handling 40 15.00$ 600.00$ 3,567,032.20$ Year 1 = $1,189,010.73 Year 2 = $1,189,010.73 Year 3 = $1,189,010.74 Total Price Sheet Communication Radios Sole Source Service Agreement Standard Form Page 1 of 7 Approved as to Legal Form July 11, 2019 SERVICE AGREEMENT NO. 2659 Purchase of Radios for Public Safety THIS Purchase of Radios for Public Safety Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and Dailey and Wells Communications, Inc. (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Purchase of Radios for Public Safety in response to Request for Bid/Proposal No. 2659 (“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 Purchase of Radios for Public Safety (“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-years 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 $3,567,032.19, 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: Peter Collins IT Department 361-826-3735 PeterC@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: Peter Collins Interim Director of Information Technology 1201 Leopard St., Corpus Christi, TX 78401 Phone: 361-826-3735 Fax: n/a IF TO CONTRACTOR: Dailey and Wells Communications, Inc. Attn: Edward Martinez Major Accounts Representative 3440 E. Houston St., San Antonio, TX 78219 Phone: 361-548-5660 Fax: 210-893-6702 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. Service Agreement Standard Form Page 7 of 7 Approved as to Legal Form July 11, 2019 CONTRACTOR Signature: Printed Name: Title: Date: 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 and Bond Requirements Attachment D: Warranty Requirements Incorporated by Reference Only: Exhibit 1: RFB/RFP No. 2659 Exhibit 2: Contractor’s Bid/Proposal Response Attachment A: Scope of Work 1.The Contractor shall provide 585 XL-200 (XL-PFM1M) portable radios for Police Department. 2.The Contractor shall provide 185 XL-200 (XL-PFM1M-C1D2) portable radios with Haz Loc feature for Fire Department. 3.The Contractor shall provide 40 XG-75 (MAMW-SDMXX) mobile radios for Police and Fire Department. 4.The Contractor shall ship radio equipment to the Dailey-Wells Corpus Christi facility for inventory and deployment. 5.The Contractor shall install all work at 321 John Sartain St., Corpus Christi, TX 78401. (Corpus Christi Police Department) 6.The Contractor shall conduct his work during normal business hours. 7.The Contractor shall install 40 XG-75 mobile radios. 8.The Contractor shall develop XL/XG radio personalities with Corpus Christi. 9.The Contractor shall program the portable and mobile radios consistent with system database of users with Corpus Christi approved personality. 10. The Contractor shall enter the defined User ID for the radios during programming. 11. The Contractor shall program all portables and mobiles for P25 operation. 12. The Contractor shall ensure that all the provided radios will be capable of both EDACS and P25 operation to enable a smooth and seamless migration to P25 systems. 13. The Contractor shall ensure that each radio includes the P25 phase 2 feature license and single-key AES encryption for operating on the fully deployed P25 system. Page 1 of 1 DAILEY AND WELLS COMMUNICATIONS, INC. To:Peter Collins From: Edward Martinez For:City of Corpus Christi IT Major Accounts Representative Phone:361-826-3735 Dailey-Wells Communications Date:1-Oct-19 361-548-5660 Cell email peterc@cctexas.com 210.893.6702 Fax emartinez@dwcomm.com XL-200P PORTABLE, FULL KEYPAD, 700/800 Item Part # Description Qty. Unit List Disc. % Unit Sale Ext Sale POLICE DEPARTMENT PORTABLE RADIOS 1 XL-PFM1M PORTABLE,XL-200P,FULL,MIDNT BLK,US 585 2,900.00$ 26%2,146.00$ 1,255,410.00$ 2 XL-PL4L FEATURE, SINGLE BAND, 7/800 585 0.01$ 100%-$ -$ 3 XL-PL4F FEATURE,P25 PHASE 2 TDMA 585 250.00$ 26%185.00$ 108,225.00$ 4 XL-PL9E FEATURE, SINGLE-KEY AES ENCRYPTION 585 0.01$ 0%0.01$ 5.85$ 5 XL-PL4U FEATURE, SINGLE-KEY DES ENCRYPTION 585 0.01$ 0%0.01$ 5.85$ 6 XL-P25ED FEATURE PACKAGE, P25 AND EDACS TRUNKING 585 2,000.00$ 26%1,480.00$ 865,800.00$ 7 XL-PA3V BATTERY,LI-ION,3100 MAH 585 150.00$ 26%111.00$ 64,935.00$ 8 XL-NC8F ANTENNA,WHIP,1/4 WAVE,762-870MHZ 585 35.00$ 26%25.90$ 15,151.50$ 9 XL-AE2V SPEAKER MIC, REVO NC2, C1D2 585 190.00$ 26%140.60$ 82,251.00$ 10 XL-HC4K CASE,LEATHER,PREMIUM,BELT LOOP,D-SWIVEL 585 145.00$ 26%107.30$ 62,770.50$ 11 XL-CH4X CHARGER,1-BAY 585 150.00$ 26%111.00$ 64,935.00$ TOTAL FOR RADIO PACKAGE:5,820.03$ 4,306.82$ 12 DWC-Labor Radio Programming 585 37.50$ 0%37.50$ 21,937.50$ 13 DWC-Shipping Shipping / Handling 585 12.10$ 0%12.10$ 7,078.50$ Sub Total 2,548,505.70$ XL-200P PORTABLE, FULL KEYPAD, 700/800 UL HAZ LOC C1D1 Item Part # Description Qty. Unit List Disc. % Unit Sale Ext Sale FIRE DEPARTMENT PORTABLE RADIOS 1 XL-PFM1M PORTABLE,XL-200P,FULL,MIDNT BLK,US 185 2,900.00$ 26%2,146.00$ 397,010.00$ 2 XL-PL4L FEATURE, SINGLE BAND, 7/800 185 0.01$ 100%-$ -$ 3 XL-PL4F FEATURE,P25 PHASE 2 TDMA 185 250.00$ 26%185.00$ 34,225.00$ 4 XL-PL9E FEATURE, SINGLE-KEY AES ENCRYPTION 185 0.01$ 0%0.01$ 1.85$ 5 XL-PL4U FEATURE, SINGLE-KEY DES ENCRYPTION 185 0.01$ 0%0.01$ 1.85$ 6 XL-P25ED FEATURE PACKAGE, P25 AND EDACS TRUNKING 185 2,000.00$ 26%1,480.00$ 273,800.00$ 7 XS-PA2A BATT, LION, 3100, HAZLOC RADIO ULC1D2 185 225.00$ 26%166.50$ 30,802.50$ 8 XL-NC8F ANTENNA,WHIP,1/4 WAVE,762-870MHZ 185 35.00$ 26%25.90$ 4,791.50$ 9 XL-AE2W SPEAKER MIC, 500F, XL-200P 185 399.00$ 26%295.26$ 54,623.10$ 10 XL-HC4K CASE,LEATHER,PREMIUM,BELT LOOP,D-SWIVEL 185 145.00$ 26%107.30$ 19,850.50$ 11 XL-CH4X CHARGER,1-BAY 185 150.00$ 26%111.00$ 20,535.00$ TOTAL FOR RADIO PACKAGE:6,104.03$ 4,516.98$ 12 DWC-Labor Radio Programming 185 37.50$ 0%37.50$ 6,937.50$ 13 DWC-Shipping Shipping / Handling 185 12.10$ 0%12.10$ 2,238.50$ Sub Total 844,817.30$ Portable Radios Extended Total 3,393,323.00$ 3440 E. Houston St., San Antonio, TX 78219 Fed Tax ID: 74-1873279 Dailey and Wells Communications, Inc. Confidential 10/2/2019 Page 1 Attachment B: Pricing Schedule XG-75M Mobile, Scan Model, Remote Mount, 764/870MHz, Item Part Number Description Qty.Unit List Disc. %Unit Sale Ext Sale POLICE DEPARTMENT MOBILE RADIOS 1 MAMW-SDMXX MOBILE,XG-75M/M7300,764-870MHZ,HALF DPLX 16 2,300.00$ 26%1,702.00$ 27,232.00$ 2 MAMW-NPL3R Feature,Max(1024+) System/Groups 16 0.01$ 0%0.01$ 0.16$ 3 MW-PL4F Feature, P25 Phase 2, TDMA 16 250.00$ 26%185.00$ 2,960.00$ 4 MW-PL9E FEATURE, SINGLE-KEY AES ENCRYPTION 16 0.01$ 0%0.01$ 0.16$ 5 MW-PL4U Feature, Single-Key DES Encryption 16 0.01$ 0%0.01$ 0.16$ 6 MW-P25ED FEATURE PACKAGE,P25 TRUNKING & EDACS 16 1,600.00$ 26%1,184.00$ 18,944.00$ 7 MAMW-NCP9E CONTROL UNIT, CH-721, SCAN, REMOTE MOUNT 16 720.00$ 26%532.80$ 8,524.80$ 8 MAMW-NZN7R ACCESSORIES,XG-75M/M7300 REMOTE MOUNT 16 360.00$ 26%266.40$ 4,262.40$ 9 MAMW-NMC7Z MICROPHONE,STD,STRAIGHT CONNECTOR 16 80.00$ 26%59.20$ 947.20$ 10 AN-225001-001 Antenna,Element,700/800 3dB 16 90.00$ 26%66.60$ 1,065.60$ 11 AN-125001-002 Antenna,Base,Standard Roof Mnt Low Loss 16 80.00$ 26%59.20$ 947.20$ TOTAL FOR RADIO PACKAGE:5,480.03$ 4,055.23$ 12 DWC-Labor Radio Programming 16 37.50$ 0%37.50$ 600.00$ 13 DWC-Labor Mobile Radio Installation 16 235.00$ 0%235.00$ 3,760.00$ 14 DWC-Shipping Shipping/Handling 16 15.00$ 0%15.00$ 240.00$ Sub Total 69,483.68$ XG-75M Mobile, Scan Model, Remote Mount, 764/870MHz, Item Part Number Description Qty.Unit List Disc. %Unit Sale Ext Sale FIRE DEPARTMENT MOBILE RADIOS 1 MAMW-SDMXX MOBILE,XG-75M/M7300,764-870MHZ,HALF DPLX 24 2,300.00$ 26%1,702.00$ 40,848.00$ 2 MAMW-NPL3R Feature,Max(1024+) System/Groups 24 0.01$ 0%0.01$ 0.24$ 3 MW-PL4F Feature, P25 Phase 2, TDMA 24 250.00$ 26%185.00$ 4,440.00$ 4 MW-PL9E FEATURE, SINGLE-KEY AES ENCRYPTION 24 0.01$ 0%0.01$ 0.24$ 5 MW-PL4U Feature, Single-Key DES Encryption 24 0.01$ 0%0.01$ 0.24$ 6 MW-P25ED FEATURE PACKAGE,P25 TRUNKING & EDACS 24 1,600.00$ 26%1,184.00$ 28,416.00$ 7 MAMW-NCP9E CONTROL UNIT, CH-721, SCAN, REMOTE MOUNT 24 720.00$ 26%532.80$ 12,787.20$ 8 MAMW-NZN7R ACCESSORIES,XG-75M/M7300 REMOTE MOUNT 24 360.00$ 26%266.40$ 6,393.60$ 9 MAMW-NMC7Z MICROPHONE,STD,STRAIGHT CONNECTOR 24 80.00$ 26%59.20$ 1,420.80$ 10 AN-225001-001 Antenna,Element,700/800 3dB 24 90.00$ 26%66.60$ 1,598.40$ 11 AN-125001-002 Antenna,Base,Standard Roof Mnt Low Loss 24 80.00$ 26%59.20$ 1,420.80$ TOTAL FOR RADIO PACKAGE:5,480.03$ 4,055.23$ 12 DWC-Labor Radio Programming 24 37.50$ 0%37.50$ 900.00$ 13 DWC-Labor Mobile Radio Installation 24 235.00$ 0%235.00$ 5,640.00$ 14 DWC-Shipping Shipping/Handling 24 15.00$ 0%15.00$ 360.00$ Sub Total 104,225.52$ P.O TBD Mobile Radios Extended Total 173,709.20$ Bill to: City of Corpus Christi Overall Total 3,567,032.20$ Accounts Payable PO Box 9277 SPECIAL TERMS:Payment 1 Due Nov.22, 2019:1,189,010.73$ Corpus Christi TX 78469-9277 Dailey-Wells Payment for $3,567,032.20 with 0%Payment 2 Due Oct 1, 2020:1,189,010.73$ interest to City detailed on separate agreement Payment 3 Due Oct 1, 2021:1,189,010.73$ Ship To:City of Corpus Christi with the following paymment schedule: 3,567,032.19$ Police Department Pricing: Valid until November 30, 2019 321 John Sartain St 5th Floor Corpus Christi TX 78401 Dailey and Wells Communications, Inc. Confidential 10/2/2019 Page 2 Attachment C: Insurance and Bond Requirements A.CONTRACTOR’S LIABILITY INSURANCE 1.Contractor must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. 2.Contractor must furnish to the City’s Risk Manager and Contract Administer one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation endorsement is required on all applicable policies. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-day advance written notice of cancellation, non-renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate ERRORS & OMMISSIONS $1,000,000 Per Occurrence $1,000,000 Aggregate CYBER LIABILITY $1,000,000 Per Occurrence $1,000,000 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 $1,000,000 Aggregate AUTO LIABILITY (including) 1.Owned 2.Hired and Non-Owned 3.Rented/Leased $1,000,000 Combined Single Limit Page 1 of 3 WORKERS’S COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employers Liability Statutory and complies with Part II of this Exhibit. $500,000/$500,000/$500,000 3.In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. B.ADDITIONAL REQUIREMENTS 1.Applicable for paid employees, Contractor must obtain workers’ compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers’ compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers’ Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. 2.Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. 3.Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 4. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: •List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; •Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; •Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and Page 2 of 3 •Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non-renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. 5.Within five (5) calendar days of a cancellation, non-renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 6.In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. 7.Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor’s performance of the work covered under this contract. 8.It is agreed that Contractor's insurance shall be deemed primary and non- contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. 9.It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2019 Insurance Requirements Ins. Req. Exhibit 7- I - IT Contracts – Software Support, Configuration, Implementation and Maintenance - Hardware Installation – Auto Liability 05/01/2019 Risk Management – Legal Dept. No bond is required for this service agreement. Page 3 of 3 U.S. EQUIPMENT WARRANTY A.Harris Corporation, a Delaware Corporation, through its Communication Systems Segment (hereinafter “Seller”) warrants to the original purchaser for use (hereinafter “Buyer”) that Equipment manufactured by or for the Seller shall be free from defects in material and workmanship and shall conform to its published specifications. With respect to all non-Seller Equipment, Seller gives no warranty, and only the warranty, if any, given by the manufacturer shall apply. Rechargeable batteries are excluded from this warranty and are warranted under a separate Rechargeable Battery Warranty (ECR-7048). B.Seller’s obligations set forth in Paragraph C below shall apply only to failures to meet the above warranties occurring within the following periods of time from date of sale to the Buyer and are conditioned on Buyer’s giving written notice to Seller within thirty (30) days of such occurrence: 1.for fuses and non-rechargeable batteries, operable on arrival only 2.for service parts, ninety (90) days 3.for mobile and portable radios (“Subscriber Units”), twenty-four (24) months 4.for Unity® model Subscriber Units, thirty-six (36) months 5.for radio accessories, one (1) year 6.for all other equipment of Seller’s manufacture, one (1) year C.During the Warranty Period, if Hardware fails to meet the foregoing warranties, Seller shall, at its option, correct the failure by: (1) repairing defective or damaged parts or Hardware, or (2) making available any necessary repaired or replacement parts, or (3) by providing new or refurbished parts or new or refurbished equipment. Seller will be responsible for shipping charges incurred in returning repaired parts, replacement parts, or hardware to Buyer. All warranty work must be conducted during normal business hours at Seller’s place of business. Any repaired or replacement parts or Hardware furnished hereunder shall be warranted for the remaining unexpired portion the original Warranty Period of that part or Hardware. The original Warranty Period shall not be extended. Where such failure cannot be corrected by Seller’s commercially reasonable efforts, Seller will refund to Buyer the fees paid for the parts or Hardware less depreciation. D.Seller’s obligations under Paragraph C shall not apply to any Equipment, or part thereof, which (i) has been modified or otherwise altered other than pursuant to Seller’s written instructions or written approval or, (ii) is normally consumed in operation or, (iii) has a normal life inherently shorter than the warranty periods specified in Paragraph B, or (iv) is not properly stored, installed, used, maintained or repaired, or, (v) has been subjected to any other kind of misuse or detrimental exposure, or has been involved in an accident. E.The preceding paragraphs set forth the exclusive remedies for claims based upon defects in or nonconformity of the Equipment, whether the claim is in contract, warranty, tort (including negligence), strict liability or otherwise, and however instituted. Upon the expiration of the warranty period, all such liability shall terminate. The foregoing warranties are exclusive and in lieu of all other warranties, whether oral, written, expressed, implied or statutory. NO IMPLIED OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE SHALL APPLY. IN NO EVENT SHALL THE SELLER BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, INDIRECT OR EXEMPLARY DAMAGES. THIS WARRANTY APPLIES ONLY WITHIN THE UNITED STATES. HARRIS CORPORATION Communication Systems Segment 221 Jefferson Ridge Parkway Lynchburg, VA 24501 1-800-368-3277 HARRIS CORPORATION Communication Systems Segment 1680 University Avenue Rochester, NY 14610 1-585-244-5830 © 2019 Harris Corporation. All rights reserved. ECR-7047W 01/19 www.harris.com Attachment D: Warranty Requirements Page 1 of 1 DATE: October 29, 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 Texas Food and Wine Festival, LLC to allow use of Heritage Park and portions of Fitzgerald Street and Hughes Street for the Corpus Christi Food and Wine Festival Event and related activities on November 23, 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 Corpus Christi Food and Wine Festival event and related activities to be held on November 23, 2019. BACKGROUND AND FINDINGS: This year’s fourth annual Corpus Christi Food and Wine Festival is an annual event that highlights local art, food, and music while offering a variety of Texas wines along with vino from 12 other nations. The festival is organized by Texas Food and Wine Festival, LLC. Their mission is to promote Corpus Christi and support local nonprofit organizations that fall into our categories of: Quality of Life, Education, Veteran, and organizations working with Underserved Communities.The event is designed to highlight as much about local artisans, chefs, artists, and musicians as able. The lease agreement with Texas Food and Wine Festival, LLC, includes a one-time Parks and Recreation Large Special Event Permit fee of $400, Health Permit/Vendor Fees, and/or Development Services Permit Fees. Should any City services be utilized for the event, then the Parks & Recreation Director will invoice Texas Food and Wine Festival, LLC 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. Corpus Christi Food and Wine Festival Lease Agreement AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting October 29, 2019 Second Reading Ordinance for the City Council Meeting November 12, 2019 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. FISCAL IMPACT: The City will be receiving $400.00 for permits that will be deposited in the Visitor’s Facility Fund No. 4710. 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 Texas Food and Wine Festival, LLC to allow use of Heritage Park and portions of Fitzgerald Street and Hughes Street for the Corpus Christi Food and Wine Festival on November 23, 2019. LIST OF SUPPORTING DOCUMENTS: Ordinance Lease Agreement with Exhibits Ordinance authorizing an agreement with Texas Food and Wine Festival, LLC to allow use of Heritage Park and portions of Fitzgerald Street and Hughes Street for the Corpus Christi Food and Wine Festival Event and related activities on November 23, 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 Texas Food and Wine Festival, LLC to allow use of Heritage Park, and portions of Fitzgerald Street and Hughes Street for the Corpus Christi Food and Wine Festival and related activities on November 23, 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 Project No: N/A 1 EG Legistar No.: 19-1398 Rev. 2– 10/2/19 DATE: October 1, 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 jeffeye@cctexas.com (361) 826-3851 Dan Grimsbo, Executive Director of Utilities dang@cctexas.com CAPTION: Ordinance accepting $31,105.92 from Epic Y Grade Pipeline, LP and authorizing an amendment to the existing Revocable Easement to allow construction of an additional 12-inch pipeline. SUMMARY: This ordinance amends the existing Revocable and Temporary Construction Easement with Epic Y Grade Pipeline, LLC to allow them to add one additional twelve (12) inch diameter pipeline to their easement for the transportation of oil, gas, or other hydrocarbon product across City properties. The ordinance accepts the compensation received into the operating account of the City’s Water Department. BACKGROUND AND FINDINGS: In February 2019, City Council approved a fifty foot wide Revocable and Temporary Construction Easement to Epic Y Grade Pipeline, LP (Epic) as shown on the attached Vicinity Map. The amount of compensation to the City was $151,721 and was calculated based on pipe size, pipe length, and easement areas. The original easement permitted only two pipelines, a sixteen (16) inch diameter and a thirty (30) inch diameter. Epic has requested to place a third line within their existing easement. The additional line will be Amending the Revocable Pipeline Easement with Epic Y Grade Pipeline LP AGENDA MEMORANDUM First Reading for the City Council Meeting of October 29, 2019 Second Reading for the City Council Meeting of November 12, 2019 Project No: N/A 2 EG Legistar No.: 19-1398 Rev. 2– 10/2/19 a twelve (12) inch diameter pipeline and will be used for the transportation of crude oil. City staff has calculated the amount of compensation to be $31,105.92 based on the line diameter and length. Since the easements are situated on lands under the jurisdiction of the Water Department, the revenue will be accepted into the Water Department Fund 4010. The easement contains terms and conditions which pertain to construction standards and compliance with laws. The easement is revocable by the City if Epic violates and fails to correct any of the laws, rules, or regulations of the Department of Transportation, Railroad Commission, and certain City ordinances. Epic will also fully indemnify the City against any and all liability, damage, loss claims and actions of any nature. Authorization to convey easements and land rights from City land is required by City Council. There is no title company participation required in the conveyance of this easement. ALTERNATIVES: Allowing the amendment for an additional line is good efficient use of the easement area. The City could alternatively deny the easement amendment to Epic Y Grade Pipeline, LP and restrict the amount of pipelines to two only. This could lead to possible legal action of eminent domain proceedings by Epic as they are registered as a common carrier pipeline company with eminent domain rights in the State of Texas. FISCAL IMPACT: The grant of this Revocable Easement produces $31,105.92 in revenue for the City’s Water Department Operating Fund No. 4010. Funding Detail: Fund: Water Department 4010 Deposited into revenue account upon receipt of funds RECOMMENDATION: City staff recommends approval of the Ordinance which grants Epic Y Grade Pipeline, LP the right to install an additional line. The revenue to be received by the City will be deposited to the Water Department’s Operating Fund No. 4010. LIST OF SUPPORTING DOCUMENTS: Location & Vicinity Maps Ordinance Amended Revocable Easement Ordinance accepting $31,105.92 from Epic Y Grade Pipeline, LP and authorizing an amendment to the existing Revocable Easement to allow construction of an additional 12-inch pipeline WHEREAS, City Council granted a 50-foot wide Revocable Easement to Epic Y Grade Pipeline, LP on March 19, 2019, by Ordinance Number 031701 for the purpose of constructing, operating, maintaining, repairing and removing one 16-inch and one 30- inch pipeline; WHEREAS, Epic Y Grade Pipeline, LP now requests to amend the purpose of the Revocable Easement to add an additional 12-inch pipeline. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: That the 50-foot wide Revocable Easement with a variable width Temporary Construction Easement granted to Epic Y Grade Pipeline, LP on March 19, 2019, by Ordinance Number 031701 is amended for the purpose of constructing, operating, maintaining, repairing and removing a 12-inch pipeline, a 16-inch pipeline and a 30-inch pipeline across two City owned properties southeast of the O.N. Stevens Water Treatment Plant in Corpus Christi, Nueces County, Texas, for the amount of $31,105.92 to be paid to the City. SECTION 2: Revenue in the amount of $31,105.92 is accepted from Epic Y Grade Pipeline, LP for the additional 12-inch pipeline. SECTION 3: That the City Manager or designee is authorized to execute the Amended Revocable Easement and other related documents for the conveyance of the revocable easement. That the foregoing ordinance was read for the first time and passed to its second reading on this____ 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 ____ 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, this _____day of ____________________, 2019 ATTEST: ____________________________ __________________________ Rebecca Huerta Joe McComb City Secretary Mayor 37 77 37 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES REVOCABLE PIPELINE EASEMENT TO EPIC Y - GRADE PIPELINE LOCATION MAP NOT TO SCALE PROJECT SITE N CITY OF CORPUS CHRISTI, TEXAS CITY COUNCIL EXHIBITREVOCABLE PIPELINE EASEMENT TO EPIC Y-GRADE PIPELINE DEPARTMENT OF ENGINEERING SERVICES VICINITY MAP NOT TO SCALE TEXSTAR PIPELINE EASEMENT RAILROADLoma Alta Rd.City Land City Land EPIC Y-GRADE PIPELINE EASEMENT DATE: October 29, 2019 TO: Peter Zanoni, City Manager FROM: Kevin Norton, Director of Water Utilities Kevinn@cctexas.com (361) 826-1874 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Ordinance approving the purchase of twenty-six pickup trucks for a total amount not to exceed $951,159.04 from Silsbee Ford of Silsbee, Texas via the GoodBuy Purchasing Cooperative to be used by the Utilities Department’s staff for daily operations; appropriating $951,159.04 from the unreserved fund balance in the Water Fund, the Wastewater Fund, and the Storm Water Fund that was previously budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. SUMMARY: This ordinance authorizes a purchase from Silsbee Ford of Silsbee, Texas, for twenty-six pickup trucks, of which twenty-five of these units are replacement units that are irreparably damaged or have exceeded their useful service life of eight years, and one is an addition to the fleet. The total amount not to exceed is $951,159.04. Type of Vehicle Fleet Status Quantity 2019 Ford F-250 Crew Cab 4x4 All Replacements 1 2019 Ford Ranger All Replacements 4 2019 Ford F-150 Regular Cab 1 New /12 Replacement 13 2019 Ford F-250 Regular Cab All Replacements 3 2020 Ford F-450 Regular Cab All Replacements 1 2020 Ford F-550 Regular Cab All Replacements 4 Total 26 Purchase of Twenty-Six Pickup Trucks for Utilities AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 29, 2019 Second Reading Ordinance for the City Council Meeting of November 12, 2019 BACKGROUND AND FINDINGS: The pickup trucks are used daily by the Utilities Department to support raw water supply operations, water and wastewater treatment operations, water quality sampling, and maintenance, repair, and construction work associated with the City’s water distribution system, wastewater collection system, and stormwater system. These twenty-five replacement trucks and one new truck allows for a more efficient and timely response by the Utilities Department to better serve the needs of citizens. The procurement is through the GoodBuy Cooperative. Contracts awarded through the GoodBuy Cooperative have been competitively procured and are in compliance with Texas Local and State procurement requirements. ALTERNATIVES: The equipment can be rented. However, th is will not be cost-effective for the long-term, and the equipment may not be readily available when needed. Another option is to operate the current equipment until it fails. FISCAL IMPACT: These twenty-six trucks were a part of the FY18-19 Utilities’ Capital Outlay Budget and will be an outright purchase in the amount of $951,159.04 to be paid from Water, Wastewater, and Storm Water Funds. This purchase with Silsbee Ford is for twenty-five replacement trucks and one new truck to be used by the Utilities Department staff for daily operations. Funding Detail: Fund: 4010 Water Fund Organization/Activity: N/A Mission Element: N/A Project # (CIP Only): N/A Account: 251850 Unreserved Fund Balance Amount: $465,181.35 Fund: 4200 Wastewater Fund Organization/Activity: N/A Mission Element: N/A Project # (CIP Only): N/A Account: 251850 Unreserved Fund Balance Amount: $303,757.14 Fund: 4300 Storm Water Fund Organization/Activity: N/A Mission Element: N/A Project # (CIP Only): N/A Account: 251850 Unreserved Fund Balance Amount: $182,220.55 RECOMMENDATION: Staff recommends approval of this ordinance authorizing the purchase with Silsbee Ford for twenty-six pickup trucks as presented. LIST OF SUPPORTING DOCUMENTS: Ordinance Price Sheet Ordinance approving the purchase of twenty-six pickup trucks for a total amount not to exceed $951,159.04 from Silsbee Ford of Silsbee, Texas via the GoodBuy Purchasing Cooperative to be used by the Utilities Department’s staff for daily operations; appropriating $951,159.04 from the unreserved fund balance i n the Water Fund, the Wastewater Fund, and the Storm Water Fund that was previously budgeted in FY 2019 for this purpose but not encumbered; and amending the FY 2019-2020 operating budget to increase expenditures. WHEREAS, twenty-six pickup trucks are needed for continued operation of the City’s Utilities Department staff for daily operations; WHEREAS, pursuant to the Interlocal Cooperation Act, Government Code, Chapter 791, and Local Government Code Chapter 271, a city may participate in cooperative purchasing programs established by the State, other municipalities, counties, special districts, and other political subdivisions in order to facilitate the procurement of necessary goods and services in full compliance with State bidding laws; WHEREAS, by Resolution 031331 on January 9, 2018, the City Council authorized participation in the interlocal participation agreement with local Regional Education Service Center #2 in order to participate in their cooperative purchasing program operated as “Goodbuy”; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That funds in the amount of $465,181.35 are appropriated from the unreserved fund balance in Water Fund No. 4010, and funds in the amount of $303,757.14 are appropriated from the unreserved fund balance in Wastewater Fund No. 4200, and funds in the amount of $182,220.55 are appropriated from the Storm Water Fund No. 4300 for the purchase of twenty-six pickup trucks (twenty-five replacements and one addition to the fleet), used by Water Utilities Department staff for daily operations, from Silsbee Ford. SECTION 2. That the FY2019-2020 operating budget adopted by Ordinance No. 031870 is amended by increasing expenditures by $951,159.04. SECTION 3. That the City Manager, or designee, is authorized to execute all documents necessary to purchase twenty-six pickup trucks (twenty-five replacements and one addition to the fleet), used by the Utilities Department staff for daily operations, from Silsbee Ford, based on the cooperative purchasing agreement with GoodBuy Purchasing Cooperative, for a total amount not to exceed $951,159.04. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo________________ Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo________________ Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor Item Equipment Description Qty UOM Unit Price Total 1 2019 Truck Ford F-250 1 Each 40,242.25$ 2 2019 Truck Ford Ranger 4 Each 110,136.00$ 3 2019 Truck Ford F-150 Regular Cab 13 Each 394,445.75$ 4 2019 Truck Ford F-250 Regular Cab 3 Each 109,207.20$ 5 2020 Truck Ford F-450 Regular Cab 1 Each 53,717.33$ 6 2020 Truck Ford F-550 Regular Cab 4 Each 243,410.51$ 951,159.04$ City of Corpus Christi Contracts & Procurement Senior Buyer: Cynthia Perez Silsbee Ford Silsbee, TX GRAND TOTAL Price Sheet Twenty-Six Light Duty Pickup Trucks for Utilities GoodBuy Contract - 18-18 8F000 Vehicles Project No.: E12134 1 MA/JE Legistar No.: 19-1437 Rev. 2 – 10/15/19 AGENDA MEMORANDUM First Reading Item for the City Council Meeting of October 29, 2019 Second Reading for the City Council Meeting of November 12, 2019 DATE: October 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 Kim Baker, Director of Contracts and Procurement kimb2@cctexas.com (361) 826-3169 CAPTION: Ordinance appropriating anticipated revenues from the Texas Department of Transportation (TxDOT) in the amount of $635,549 and awarding a contract to Mako Contracting, LLC. for construction of sidewalk and lighting improvements for the S.E.A. District Pedestrian Improvement project in the amount of $794,436.22. The project is located in City Council District 1 and the contract will begin upon issuance of notice to proceed. Funding is approved and available from an 80% TxDOT grant and a 20% match from Street Bond 2016 CIP. SUMMARY: This ordinance authorizes a contract with Mako Contracting, LLC for construction to replace sidewalks, crosswalks, and lighting along Brewster and Chaparral in the SEA District area. These services are necessary to meet current city or ADA standards. BACKGROUND AND FINDINGS: The Sports, Entertainment and Arts (SEA) District is an area downtown with many locations of public interest. The City conducted a study known as the Building Blocks for Sustainable Communities’ Walkability Audit in May 2012, that identified the need for pedestrian improvements in the SEA District area. Streets recommended for pedestrian improvements included Port Avenue, Mesquite Street, Brewster Street and Chaparral Street. Construction Contract S·E·A District Pedestrian Improvements Project No.: E12134 2 MA/JE Legistar No.: 19-1437 Rev. 2 – 10/15/19 The existing sidewalks are not fully developed and do not meet current City or ADA standards. The walkability audit considered sidewalks, driveways, curbs, ADA-compliant ramps, crosswalks, vehicle stop bars, landscaping, and bus stop infrastructure. This project the first phase of implementation for the recommended improvements along Chaparral Street from Brewster Street to Harbor Drive and Brewster Street from Chaparral Street to N Broadway Street. This section was prioritized due to the lack of any existing pedestrian amenities and the high volume of pedestrian activity. The project was developed as a joint TxDOT/City project with the customary 80/20 construction cost sharing. The TxDOT participation is for construction only with a maximum anticipated construction cost of $1,200,000 that was approved for Category 7 funds through the Metropolitan Planning Organization’s Transportation Improvements Program (TIP) prior to 2017. In 2017, City Council approved the Advance Funding Agreement (AFA) with TxDOT. The AFA provided a maximum cost participation from TxDOT of $960,000 or 80% of construction cost, whichever is less. The City match is 20% of actual construction costs plus reimbursement to TxDOT for state direct cost in the amount of $21,000. The City provided the design, bidding and construction award and would be responsible for any construction costs that exceed the $1,200,000. This project was previously advertised and bid in March 2019 with three bids received. The City submitted the award documents to TxDOT for approval in April 2019. TXDOT expressed concerns regarding the low bidder’s inability to meet the minimum Disadvantaged Business Enterprise Program goal and would not support the bid award. The City re-bid the project on August 21, 2019. This SEA District Pedestrian Improvements REBID Project includes construction of new accessible pedestrian routes along Brewster Street from N. Broadway Street to N. Chaparral Street, new routes on the west side of N. Chaparral Street from Brewster Street to the parking lot south of Harbor Drive, a new route on the east side of N. Chaparral Street between Sisson Street and Harbor Drive and replacement of existing routes on the east side of N. Chaparral Street from Bayfront Park to the parking lot north of Hirsch Street for a total length of approximately 1,300 feet. The Project includes new stamped/stained concrete crosswalks at all pedestrian street crossings, replacement of the brick paver circle at N. Chaparral Street and Brewster Street with stamped/stained concrete, new lighting improvements and minor landscaping additions. PROJECT TIMELINE: FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB 2019 Bid 2020 Construction Project Schedule reflects City Council Award in October 2019 with anticipated completion in February 2020. COMPETITIVE SOLICITATION PROCESS: On August 21, 2019 the City received proposals from three (3) bidders as summarized below: Project No.: E12134 3 MA/JE Legistar No.: 19-1437 Rev. 2 – 10/15/19 BID SUMMARY CONTRACTOR BASE BID MAKO CONTRACTING, LLC 3636 S. ALAMEDA, STE B#153 CORPUS CHRISTI, TEXAS 78411 $794,436.22 CPC Interests, LLC DBA Clark 6229 Leopard Street Corpus Christi, Texas 78409 $1,128.998.94 A. Ortiz Construction & Paving 102 Airport Road Corpus Christi, Texas 78405 $1,156,589.00 Engineer’s Opinion of Probable Cost $797,212.96 ALTERNATIVES: Council could cancel the project and not award a construction contract. Council could also reject the contract award to Mako Contracting, LLC. That action would delay the project and require negotiating a new agreement with a different contractor. FISCAL IMPACT: The project is a Bond 2012, Proposition B project approved by city voters in November 2012. This item will award a contract for construction services to Mako Contracting, LLC., to replace sidewalks, crosswalks and lighting along Brewster and Chaparral in the SEA District area in the amount of $794,436.22, effective upon issuance of notice to proceed, with funding available from Bond 2012, Proposition B and TxDOT participation of $635,549. The project is located in Council District 1. Financial Detail: Fund: Street CIP (Fund 3530) Mission Elem: Mobility safety reliability (ME 053) Account: Construction (550910) Activity: E12134-01-3530-EXP Amount: $635,549 Fund: Street 2013 General Obligation Bond 2012 (Fund 3549) Mission Elem: Mobility safety reliability (ME 053) Account: Construction (550910) Activity: E12134-01-3549-EXP Amount: $74,065.72 Fund: Street 2018 General Obligation Bond 2016 (Fund 3554) Mission Elem: Mobility safety reliability (ME 053) Account: Construction (550910) Activity: E12134-01-3554-EXP Amount: $47,069.50 Fund: Street 2018 General Obligation Bond 2016PR (Fund 3553) Mission Elem: Mobility safety reliability (ME 053) Account: Construction (550910) Activity: E12134-01-3553-EXP Amount: $37,752.00 Project No.: E12134 4 MA/JE Legistar No.: 19-1437 Rev. 2 – 10/15/19 RECOMMENDATION: Staff recommends award of the Contract to Mako Contracting, LLC., in the amount of $794,436.22. The construction phase will start in November 2019 with completion planned in February 2020. LIST OF SUPPORTING DOCUMENTS: Ordinance Advance Funding Agreement Location Maps Bid Tab Letter of Recommendation Ordinance appropriating anticipated revenues from the Texas Department of Transportation (TXDOT) in the amount of $635,549 and awarding a contract to Mako Contracting, LLC. for construction of pedestrian and lighting improvements for the S.E.A. District Pedestrian Improvement Project in the amount of $794,436.22. The project is located in City Council District 1 and the contract will begin upon issuance of notice to proceed. Funding is approved and available from an 80% TXDOT Grant and a 20% match from Street Bond 2016 CIP. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Anticipated revenues from a TxDOT receivable are appropriated in Street CIP Fund 3530 SECTION 2. The Fiscal Year 2020 Capital Improvement Program Budget adopted by Ordinance 031870 is amended to increase revenues and expenditures in the amount of $635,549 for TxDOT’s 80% match. The City’s 20% match is available in Bond 2012 Street Proposition 8 proceeds. SECTION 3. The City Manager or designee is authorized to execute a construction contract in the amount of $794,436.22 with Mako Contracting, LLC. for the S.E.A. District Pedestrian Improvement Project for installation of pedestrian and lighting improvements located in City Council District 1. SECTION 4. This project is located in City Council District 1 and the contract will proceed upon Council approval and issuance of the Notice to proceed. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo ________________ Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo ________________ Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 37 181 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES SEA District Pedestrian Improvements LOCATION MAP NOT TO SCALE Project Location Project Number: E12134 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES SEA District Pedestrian Improvements VICINITY MAP NOT TO SCALE Project Number: E12134 181 E. Port Ave. Brewster St .N. Chaparral St.Hirsch St.N BroadwayStMesquite St. ITEM 2014 TxDOT SPEC #DESCRIPTION UNIT QTY.UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT A1 500 MOBILIZATION LS 1 33,000.00$ 33,000.00$ 40,000.00$ 40,000.00$ 55,000.00$ 55,000.00$ A2 -BONDS AND INSURANCE LS 1 20,375.00$ 20,375.00$ 18,750.00$ 18,750.00$ 15,000.00$ 15,000.00$ A3 502(5)(9)TRAFFIC CONTROL LS 1 15,000.00$ 15,000.00$ 12,500.00$ 12,500.00$ 10,000.00$ 10,000.00$ A4 506(161)(432)(556)STORM WATER POLLUTION PREVENTION PLAN LS 1 2,400.00$ 2,400.00$ 18,750.00$ 18,750.00$ 8,000.00$ 8,000.00$ A5 -EXPLORATORY EXCAVATIONS LS 1 5,000.00$ 5,000.00$ 9,375.00$ 9,375.00$ 3,500.00$ 3,500.00$ A6 -OZONE ACTION DAY DAYS 2 1.00$ 2.00$ 437.50$ 875.00$ 100.00$ 200.00$ A7 506(161)(432)(556)INLET PROTECTION EA 17 120.00$ 2,040.00$ 512.50$ 8,712.50$ 250.00$ 4,250.00$ A8 506(161)(432)(556)SANDBAG INLET PROTECTION EA 1 120.00$ 120.00$ 750.00$ 750.00$ 300.00$ 300.00$ A9 461(9)(400)(402)(403)(420)(421)(440) (442)(445)(447)(467)3.5' CONCRETE FLUME W/STEEL PLAT AND FRAME LF 5 300.00$ 1,500.00$ 3,508.33$ 17,541.65$ 1,500.00$ 7,500.00$ A10 430(420)(421)(440)ADJUST EXISTING FLUME AND CURB INLET INTO BOX CULVERT AND EXTENDED CURB INLET TO ACCOMODATE SIDEWALK STRUCTURE LS 1 11,224.75$ 11,224.75$ 9,375.00$ 9,375.00$ 7,500.00$ 7,500.00$ A11 -ADJUST EXISTING WATER METER EA 2 750.00$ 1,500.00$ 968.75$ 1,937.50$ 500.00$ 1,000.00$ A12 -ADJUST EXISTING WATER VALVE BOX EA 7 800.00$ 5,600.00$ 512.50$ 3,587.50$ 500.00$ 3,500.00$ A13 -ADJUST EXISTING GAS VALVE BOX EA 8 500.00$ 4,000.00$ 468.75$ 3,750.00$ 500.00$ 4,000.00$ A14 471(441)(445)(448)(465)ADJUST EXISTING MANHOLE RING AND COVER EA 4 1,800.00$ 7,200.00$ 1,718.75$ 6,875.00$ 2,000.00$ 8,000.00$ A15 -ADJUST ELECTRICAL BOX EA 2 2,400.00$ 4,800.00$ 2,687.50$ 5,375.00$ 1,500.00$ 3,000.00$ A16 496 RELOCATE SIGNAGE EA 14 960.00$ 13,440.00$ 312.50$ 4,375.00$ 500.00$ 7,000.00$ A17 104(9)REMOVE EXISTING CONCRETE PAVEMENT SY 184 44.80$ 8,243.20$ 30.75$ 5,658.00$ 45.00$ 8,280.00$ A18 210 SUBGRADE PREPARATION FOR CONCRETE PAVEMENT SY 241 15.00$ 3,615.00$ 22.00$ 5,302.00$ 30.00$ 7,230.00$ A19 247(4)(9)(105)(204)(210)(216)(520)6"TYPE A,GRADE 1-2 CRUSHED LIMESTONE BASE PER TxDOT STANDARD ITEM 247 SY 241 20.00$ 4,820.00$ 38.13$ 9,189.33$ 45.00$ 10,845.00$ A20 360(421)(422)(438))(440)(529)(585)9" CONCRETE PAVEMENT (CLASS 'S' 4,000 PSI)SY 186 185.00$ 34,410.00$ 137.50$ 25,575.00$ 200.00$ 37,200.00$ A21 528(132)(247)(275)(401)(420)(421) (440) 9"CONCRETE PAVEMENT COLORED AND STAMPED (CLASS 'S'4,000 PSI) CIRCULAR FEATURE SY 55 236.00$ 12,980.00$ 268.75$ 14,781.25$ 270.00$ 14,850.00$ A22 192(161)(166))(168)LANDSCAPE PLANTING (5-GAL OLEANDER)EA 25 120.00$ 3,000.00$ 250.00$ 6,250.00$ 350.00$ 8,750.00$ A23 162(166)(168)SODDING FOR EROSION CONTROL SY 603 9.00$ 5,427.00$ 7.19$ 4,335.57$ 20.00$ 12,060.00$ 199,696.95$ 233,620.30$ 236,965.00$ B1 104(9)REMOVE EXISTING CURB AND GUTTER LF 747 15.00$ 11,205.00$ 25.00$ 18,675.00$ 10.00$ 7,470.00$ B2 104(9)REMOVE EXISTING CONCRETE DRIVEWAY/VALLEY GUTTER SY 68 45.00$ 3,060.00$ 60.20$ 4,093.60$ 72.00$ 4,896.00$ B3 105 REMOVE EXISTING HMAC DRIVEWAY SY 151 9.00$ 1,359.00$ 24.60$ 3,714.60$ 35.00$ 5,285.00$ B4 104(9)REMOVE EXISTING CONCRETE SIDEWALK/RAMP/FLUME SY 472 30.00$ 14,160.00$ 49.20$ 23,222.40$ 55.00$ 25,960.00$ B5 105 REMOVE EXISTING HMAC PARKING LOT SY 129 9.00$ 1,161.00$ 17.40$ 2,244.60$ 72.00$ 9,288.00$ B6 110(9)(132)STREET EXCAVATION (1' B.O.C.)SY 1,821 26.27$ 47,837.67$ 24.53$ 44,669.13$ 60.00$ 109,260.00$ B7 210 SUBGRADE PREPARATION (1' B.O.C.)SY 1,764 12.00$ 21,168.00$ 6.17$ 10,883.88$ 40.00$ 70,560.00$ B8 529(360)(420)(421)(440)STANDARD 6"CURB AND GUTTER (INCLUDING LIMESTONE BASE BENEATH CURB TO 1' B.O.C)LF 1,381 28.00$ 38,668.00$ 23.75$ 32,798.75$ 30.00$ 41,430.00$ B9 531(104)(360)(420)(421)(440)(530)CONCRETE SIDEWALK SF 9,406 7.00$ 65,842.00$ 10.33$ 97,163.98$ 10.00$ 94,060.00$ B10 247(4)(9)(105)(204)(210)(216)(520)6"TYPE A.GRADE 1-2 CRUSHED LIMESTONE BASE PER TxDOT STANDARD ITEM 247 CROSSWALKS SY 419 20.00$ 8,380.00$ 38.13$ 15,976.47$ 45.00$ 18,855.00$ B11 528(132)(247)(275)(401)(420)(421)(440)9" CONCRETE COLORED AND STAMPED (CLASS 'S' 4,000 PSI) CROSSWALK SF 3,771 26.60$ 100,308.60$ 24.38$ 91,936.98$ 35.00$ 131,985.00$ B12 -ADA RAMP SF 4,435 25.00$ 110,875.00$ 21.43$ 95,042.05$ 30.00$ 133,050.00$ B13 530(247)(260)(263)(275)(276)(292) (316)(330)(334)(340)(360)(421)(440)CONCRETE DRIVEWAY SF 2,365 9.60$ 22,704.00$ 14.50$ 34,292.50$ 15.00$ 35,475.00$ B14 351(132)(204)(247)(260)(263)(275) (276)(292)(310)(316)(330)(334)(340)FULL-DEPTH PAVEMENT REPAIR SY 885 105.00$ 92,925.00$ 119.38$ 105,651.30$ 175.00$ 154,875.00$ B15 668(9)(678)REFLECTIVE PAVEMENT MARKINGS (W) (12") (SOLID) (90 MIL) CROSSWALKS LF 963 18.00$ 17,334.00$ 3.98$ 3,832.74$ 35.00$ 33,705.00$ 556,987.27$ 584,197.98$ 876,154.00$ PART B - ADA IMPROVEMENTS SUBTOTAL PART B - ADA IMPROVEMENTS (ITEMS B1 thru B15) TABULATED BY: YESENIA SINGLETON, PE & DONNIE REHMET, PE, RPLS LJA ENGINEERING, INC. SUBTOTAL PART A - PEDESTRIAN AND MOBILITY IMPROVEMENTS (ITEMS A1 thru A23) 3636 S. ALAMEDA, STE B #153 BASE BID BID DATE: AUGUST 21, 2019 S·E·A DISTRICT PEDESTRIAN IMPROVEMENTS (BOND 2012)MAKO CONTRACTING, LLC. CORPUS CHRISTI, TEXAS 78411 PART A - PEDESTRIAN AND MOBILITY IMPROVEMENTS COMPLETION: 90 CALENDAR DAYS CITY OF CORPUS CHRISTI PROJECT NO. E12134 - LJA PROJECT NO. C007-13033 TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS CORPUS CHRISTI, TEXAS 78409 CORPUS CHRISTI, TEXAS 78405 ENGINEER'S ESTIMATE: $875,000 CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES A. ORTIZ CONSTRUCTION & PAVING, INC. 6229 LEOPARD STREET 102 AIRPORT ROAD LJA Engineering, Inc. TBPE Firm Reg. No. F-1386 SEA District Pedestrian Improvements (Bond 2012) 're-bid' Project No. E12134 Bid Tabulation 8/28/2019 Page 1 of 2 ITEM 2014 TxDOT SPEC #DESCRIPTION UNIT QTY.UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT TABULATED BY: YESENIA SINGLETON, PE & DONNIE REHMET, PE, RPLS LJA ENGINEERING, INC. 3636 S. ALAMEDA, STE B #153 BASE BID BID DATE: AUGUST 21, 2019 S·E·A DISTRICT PEDESTRIAN IMPROVEMENTS (BOND 2012)MAKO CONTRACTING, LLC. CORPUS CHRISTI, TEXAS 78411 COMPLETION: 90 CALENDAR DAYS CITY OF CORPUS CHRISTI PROJECT NO. E12134 - LJA PROJECT NO. C007-13033 TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS CORPUS CHRISTI, TEXAS 78409 CORPUS CHRISTI, TEXAS 78405 ENGINEER'S ESTIMATE: $875,000 CPC INTERESTS, LLC DBA CLARK PIPELINE SERVICES A. ORTIZ CONSTRUCTION & PAVING, INC. 6229 LEOPARD STREET 102 AIRPORT ROAD C1 -CONDT (PVC) (SCHEDULE 40) (2")LF 1,137 8.00$ 9,096.00$ 19.43$ 22,091.91$ 10.00$ 11,370.00$ C2 -CONDT (PVC) (SCHEDULE 40) (2") (BORE)EA 280 25.20$ 7,056.00$ 28.25$ 7,910.00$ 60.00$ 16,800.00$ C3 -GROUND BOX TY A (122311) W/APRON EA 18 1,200.00$ 21,600.00$ 1,332.50$ 23,985.00$ 850.00$ 15,300.00$ 37,752.00$ 53,986.91$ 43,470.00$ 2. Addition Error For Subtotal Part A (Pedestrian and Mobility Improvements) (A1 thru A23)For Contractor Mako Contracting, LLC. Corrected Total is shown. 3. Addition Error For Bid Summary Parts A - Pedestrian and Mobility Improvements For Contractor Mako Contracting, LLC. Corrected Total is shown. 5. Bid Packet Submitted For Contractor CPC Intersts LLC dba Clark Pipeline Services did not reflect acknowledgement of Addenda issued. 1. Multiplication Extension Error For Bid Item A2 For Contractor Mako Contracting, LLC. Corrected Total is shown. 4. Addition Error For Bid Summary Total Base Bid Parts A thru C For Contractor Mako Contracting, LLC. Corrected Total is shown. 37,752.00$ PART C - LIGHTING IMPROVEMENTS 794,436.22$ PART A - PEDESTRIAN AND MOBILITY IMPROVEMENTS PART B - ADA IMPROVEMENTS PART C - LIGHTING IMPROVEMENTS PART C - LIGHTING IMPROVEMENTS (ITEMS C1 thru C3) TOTAL BASE BID • PARTS A thru C 199,696.95$ BID SUMMARY 556,987.27$ 871,805.19$ 1,156,589.00$ 233,620.30$ 236,965.00$ 584,197.98$ 876,154.00$ 53,986.91$ 43,470.00$ LJA Engineering, Inc. TBPE Firm Reg. No. F-1386 SEA District Pedestrian Improvements (Bond 2012) 're-bid' Project No. E12134 Bid Tabulation 8/28/2019 Page 2 of 2 DATE: October 18, 2019 TO: Peter Zanoni, City Manager FROM: Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3235 CAPTION: Ordinance authorizing the execution of the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District, subject to release of all claims by Beeville Water Supply District and City of Beeville against the City of Corpus Christi and subject to withdrawal of all administrative proceedings filed by Beeville Water Supply District and City of Beeville against the City of Corpus Christi in the Public Utility Commission of Texas and subject to payment of all amounts determined by the City Manager to be owed pursuant to the existing contract between the parties after waiver of $162,809.85 of Future Water Resources Reserve Fund charges that were contested and withheld by said District and authorizing the City Manager to make the aforesaid waiver. SUMMARY: This ordinance authorizes the City Manager to execute the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District. The City of Beeville is subject to making a payment of an adjusted outstanding balance of $255,201.30 by October 31, 2019. BACKGROUND AND FINDINGS: The Beeville Water Supply District of which the City of Beeville is a utility customer has underpaid on their City of Corpus Christi raw water account from March 2017 through September 2019 and currently owes the City of Corpus Christi $418,011.15. Of that amount, $162,809.85 represents the five-cent fee and $255,201.30 represents sums withheld for water received. City staff is recommending that City Council approve that the City of Corpus Christi can waive $162,809.85 of the past due amount and that the City of Corpus Christi provide technical assistance to Beeville in the desilting at Beeville’s intake if the following actions are taken: • Pay $255,201.30 by October 31, 2019; • Pay current invoice and all future invoices in full by their due dates; Beeville Water Supply Agreement – Second Addendum and Adjusted Outstanding Balance AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting October 29, 2019 Second Reading Ordinance for the City Council Meeting November 12, 2019 • Withdraw the Beeville Water Supply District and City of Beeville’s appeal of wholesale water rate to the Public Utilities Commission; and • Agree to amend the Water Supply Agreement with terms as contained in the City’s proposed Second Addendum. Listed below is a summary of the terms of the Second Addendum: • Provides that the City will provide Beeville at least 60 days’ notice of proposed change in price; • Specifies that the cost for water includes five cents per thousand-gallon charge for creating or maintaining a future water resources reserve fund from which to pay water supply development costs, which charge is subject to potential increase but not exceeding the cumulative increase in the consumer price index; • Identifies that the composite cost calculation includes the costs for existing regional water supply facilities such as Lake Texana Pipeline, Lavaca Navidad River Authority Pump Station and Mary Rhodes Phase II Pipeline; • Clarifies that if a water supply development or protection project involves use of the future water resources reserve fund, then the costs for the project paid with such revenues shall not be included in the calculation of the composite cost rate or the published rate; • Replaces the prior “Rationing of Water” section with terms consistent with the City’s Water Conservation and Drought Management Plan measures; • Adds language for the City to provide non-engineering technical assistance to BWSD’s development of requests for proposals for water intake facilities work; • Adds requested statements that the future water resources reserve fund will be expended on projects that develop additional water supplies or lower the cost of the raw water. ALTERNATIVES: An alternative is to request that the Beeville Water Supply District pay the entire outstanding balance of $418,011.15. A second alternative is to cancel our contract with the Beeville Water Supply District. FISCAL IMPACT: If City Council approves waiving $162,809.85 the City of Corpus Christi will receive $255,201.30 by October 31, 2019. Funding Detail: Fund: 4041 – Raw Water Supply Development Fund Organization/Activity: 30000 Mission Element: 888 Revenue Project # (CIP Only): N/A Account: 324845 Amount: -$418,011.15 RECOMMENDATION: City staff recommends that City Council approves the execution of the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District. In addition, City staff recommends that City Council waives $162,809.85, making the total amount owed to the City of Corpus Christi to $255,201.30. LIST OF SUPPORTING DOCUMENTS: Ordinance 1 Ordinance authorizing the execution of the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District, subject to release of all claims by Beeville Water Supply District and City of Beeville against the City of Corpus Christi and subject to withdrawal of all administrative proceedings filed by Beeville Water Supply District and City of Beeville against the City of Corpus Christi in the Public Utility Commission of Texas and subject to payment of all amounts determined by the City Manager to be owed pursuant to the existing contract between the parties after waiver of $162,809.85 of Future Water Resources Reserve Fund charges that were contested and withheld by said District and authorizing the City Manager to make the aforesaid waiver. Be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1. The City Manager is authorized to execute the Second Addendum to the Water Supply Agreement with the Beeville Water Supply District, subject to release of all claims by Beeville Water Supply District and City of Beeville against the City of Corpus Christi and subject to withdrawal of all administrative proceedings filed by Beeville Water Supply District and City of Beeville against the City of Corpus Christi in the Public Utility Commission of Texas and subject to payment of all amounts determined by the City Manager to be owed pursuant to the existing contract between the parties after waiver of $162,809.85 of Future Water Resources Reserve Fund charges that were contested and withheld by said District. The City Manager is authorized to make the aforesaid waiver. 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. 2 ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 3 SECOND ADDENDUM TO WATER CONTRACT STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF NUECES § WHEREAS, pursuant to one water sales contract between the City of Corpus Christi and the Beeville Water Supply District, hereinafter referred to as Corpus Christi (or City) and BWSD, respectively, said contract dated March 4, 1982 (the “Water Supply Agreement”) Corpus Christi agreed to sell water for municipal purposes to BWSD according to the alternate price structures stipulated therein; and WHEREAS, Corpus Christi and BWSD agreed to amend certain section of the Water Supply Agreement pursuant to an agreement captioned “Addendum to Water Contract” approved by the Corpus Christi city council on May 17, 1988; and WHEREAS, due to changes in conditions and circumstances of the parties and to clarify the intentions of the parties, it is the desire of the parties to amend the Water Supply Agreement, as amended by the Addendum to Water Contract. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged by the parties, BWSD and Corpus Christi hereby agree to amend said Water Supply Agreement, as amended by the Addendum to Water Contract, as follows: I. That Section 6., entitled Price, page 4 of the Water Supply Agreement, shall be deleted in its entirety and a new Section 6 shall be substituted therefor to hereafter read as follows: 6. Price: (A) The price to be charged for untreated water sold by City to BWSD will be whichever of the two is the lower: 1. The most recent published untreated or raw water cost adjustment calculated as set forth by Ordinance adopted by the governing body of Corpus Christi. 2. The “composite cost of untreated water” as defined in Section 7 hereof, or similar calculation that recognizes all cost elements for providing a water supply applicable to all water customers, and approved by the appropriate state agency. (B) When City intends to increase the price for untreated water sold by City to BWSD, the City will provide the BWSD notice of the proposed change and all information necessary for BWSD to evaluate the proposed price at least sixty days before the change is to take effect. BWSD shall give good faith consideration to the proposed new price and shall attempt to provide the City with its comments on the proposed change not later than thirty (30) days before the proposed change is to take effect. The City shall provide BWSD with any additional information relating to 4 the change in price requested by BWSD within ten business days after receipt of the request and shall give good faith consideration to BWSD’s comments. City may institute the new price provided City gave BWSD notice of the price increase as provided in this subsection. BWSD’s failure to submit comments or the submittal of comments relating to the price increase does not waive any right that BWSD may have to challenge the price increase. BWSD shall be charged and timely pay for the water at the new price; however, such payment does not waive any right that BWSD may have to file legal challenge of the price increase with court or agency of appropriate jurisdiction. (C) The price charged for untreated water sold by City to BWSD shall include a five cents per thousand gallon charge for creating or maintaining a future water resources reserve fund from which to pay water supply development costs that develop additional water supplies or lower the cost of raw water. Said charge is subject to potential increase not exceeding the cumulative increase in the consumer price index. II. That Section 7., entitled Composite Cost of Untreated Water, as restated by the Addendum to Water Contract pages 1-2, shall be deleted in its entirety and a new Section 7 shall be substituted therefor to hereafter read as follows: 7. Composite Cost of Untreated Water: The rate for the composite cost of untreated water shall be calculated on the first day of January of each year and shall be calculated on the basis of City’s previous fiscal year and the total water withdrawn during the City’s previous fiscal year. The components of the cost of untreated water are as follows: (A) Wesley Seale Costs: all actual costs (city fiscal year), emergency costs, debt service and capital expenditures; (B) Choke Canyon Costs: all actual costs (city fiscal year), emergency expenditures, debt service and capital expenditures; (C) Water Supply Development or Protection: consultants’ studies, reports, investigations, legal fees and court costs and any other costs resulting from the development or protection of the water supply; (D) Other existing and future regional supply facilities: 1. Other existing regional water supply facilities: all actual costs (city fiscal year), emergency costs, debt service and capital expenditures of the following existing regional water supply facilities: Lake Texana Pipeline, LNRA Pump Station, and Mary Rhodes II Pipeline. 2. Future regional water supply facilities, the tax subsidy, if any: the cost element defined and set forth in Section 18 of the Water Supply Agreement, if any, and subject to all of the provisions of Section 18. 5 (E) Administrative costs: 25 percent of the costs of operational expenses of the offices of the Director of Water Utilities and Water Superintendent and general city administration costs allocated to the Water Division (fiscal year annual expenditures); (F) The total of all of the above costs shall be credited with any income from rental or lease operations of the supply facilities and the net shall be divided by the total supply system withdrawals (fiscal year). (G) Revenues received to establish and maintain a future water resources reserve fund that are attributable to the composite cost component described above as the Water Supply Development or Protection component are to develop additional water supplies or lower the cost of raw water. If a water supply development or protection project involves use of such revenues from this fund, then the costs for the project paid with such revenues shall not be included in the calculation of the composite cost rate as described in this Section 7, or in the published rate as described in Section 6. III. That Section 10., entitled “Maintenance and Operation of Facilities”, page 6 of the Water Supply Agreement, shall be amended by the addition of the underlined text: 10. Maintenance and Operation of Facilities: The water intake facility and related improvements constructed by BWSD shall be maintained, operated, and repaired by BWSD subject to provisions herein contained. City shall have the right to require BWSD to maintain the facilities on City property or easements in a manner comparable to the level of maintenance at similar City facilities. City staff may provide non-engineering technical assistance as determined to be reasonable by the City Manager to assist BWSD in review of BWSD’s development of the BWSD requests for proposals for any water intake improvements. IV. That Section 20., entitled Rationing of Water, page 3 of the Addendum to Water Contract shall be amended by replacing Section 20 in its entirety as follows. 20. Rationing of Water: BWSD and City agree to the following stages in reduction of raw water consumption by BWSD as the City Manager of City declares the various water shortage conditions to be in force in accordance with Section 55-151 of the Corpus Christi City Code: A. Condition I – drought possibility – BWSD shall reduce its average raw water consumption by 10%. B. Condition II – drought watch – BWSD shall reduce its average raw water consumption by 30%. 6 C. Condition III – drought warning – BWSD shall reduce its average raw water consumption by 75%. D. Condition IV – drought emergency – BWSD shall cease taking raw water, and shall be released from the fixed minimum obligation under Section 8 (B). For purposes of calculating the ‘average raw water consumption,’ that term is defined as the amount of water used per month averaged over the previous three years. During periods of reduced raw water consumption by BWSD, it shall have the option to impose its water conservation and rationing regulations on its customers. It may elect to supplement its intake of raw water from Lake Corpus Christi with its own source of well water. During period BWSD is taking no raw water from City but is producing a surplus of water from its own wells, BWSD may, if requested by City, pump water back into Lake Corpus Christi through its existing twenty-four inch supply line. The cost of such water to be charged to City will be based on actual operation and maintenance costs of the wells used and the pipeline. “20. Water Conservation and Drought Management Plan Measures. a. BWSD agrees that during the term of this contract, it shall have in effe ct a water conservation and drought management plan consistent with the City’s water conservation and drought management plan. b. To the extent that any State regulatory agency requires rationing of water in a manner stricter that that imposed by the City, BWSD will comply with such stricter method of rationing water. c. BWSD shall furnish a copy of any ordinances, orders, or rules adopted by it or its customers that is adopted to implement the required restrictions, surcharges, or rationing measures. d. The failure of BWSD to comply with this Section of the contract is a default for which the Contract may be terminated by the City upon thirty days’ notice of default.” DATE:November 12, 2019 TO:Peter Zanoni, City Manager FROM:Mike Markle, Police Chief MikeMa@cctexas.com (361) 826-2601 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Motion approving the purchase from GT Distributors, Inc. of Austin, Texas for a total amount not to exceed $103,155.00, for weapon-mounted Surefire X300 Ultra LED handgun lights to be used by the Corpus Christi Police Department (CCPD) to accompany the new Smith and Wesson M&P 9mm service weapons, with funding through the CC Crime Control Fund. SUMMARY: This motion authorizes a purchase from GT Distributors, Inc., for 500 weapon-mounted Surefire X300 Ultra LED Handgun Lights to be used by the CCPD to accompany the new Smith and Wesson M&P 9mm service weapons to improve police officer safety. BACKGROUND AND FINDINGS: The CCPD is currently transitioning from Smith and Wesson M&P .40 caliber services weapons to Smith and Wesson M&P 9mm service weapons. The City Council approved the purchase on April 30, 2019. The Crime Control and Prevention District Board approved the funding to outfit weapon-mounted tactical lights in the FY2019-2020 budget. In an effort to improve police officer safety, CCPD is purchasing weapon-mounted lighting systems for the new service weapons. Weapon-mounted lights are primary lighting systems used during low light or no light situations when police officers need to identify threats. Currently, officers are using flashlights in these situations. Handgun Lights for CCPD AGENDA MEMORANDUM Action Item for the City Council Meeting November 12, 2019 In review of the lighting system needed to accompany the new Smith and Wesson M&P 9mm, the Surefire X300U Ultra LED Handgun Light through GT Distributers was identified as the compatible light for the new weapons. The Contracts and Procurement Department is making this purchase through the BuyBoard Cooperative. Contracts awarded through the Cooperative have been competitively procured and are in compliance with Texas State and Local procurement requirements. ALTERNATIVES: In the absence of this purchase of the weapon-mounted lights, officers could continue to use their handheld flashlight. The current method of holding the flashlight in one hand and the weapon in the other, compromises officer safety and limits force options for the officer during low light or no light situations. Additionally, the new weapon (Smith and Wesson M&P 9mm) holster requires the lighting system (Surefire X300u) to secure the weapon in the holster. Delays in purchasing the lighting system would halt the transition to the new weapon system due to the design of the holster. FISCAL IMPACT: The purchase of 500 Surefire X300U Ultra LED handgun lights in the amount of $103,155.00 was approved by the Crime Control and Prevention District Board for the FY2019-2020 budget. This purchase from GT Distributors, Inc. is for weapon-mounted handgun lights for the new Smith and Wesson M&P 9mm service weapons. Funding Detail: Fund:9010 CC Crime Contrl Organization/Activity:11711 CCCCPD-Police Ofcr Cost Mission Element:151 RespondToLawEnforecementCalls Project # (CIP Only): N/A Account:520090 Minor Tools & Equip RECOMMENDATION: Staff recommends approval of this motion authorizing the purchase from GT Distributors Inc. for weapon-mounted Surefire X300 Ultra LED handgun lights to be used by the Corpus Christi Police Department (CCPD) to accompany the new Smith and Wesson M&P 9mm service weapons as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet City of Corpus Christi Contracts and Procurement Buyer: Cindy Ramos ITEM DESCRIPTION QUANTITY EXTENDED TOTAL 1 Surefire X300U Ultra LED Handgun Light 500 each $103,155.00 $103,155.00 GT Distributors, Inc. TOTAL Price Sheet Purchase of 500 Handgun Lights For Police Department BuyBoard Contract 524-17 DATE:November 12, 2019 TO:Peter Zanoni, City Manager FROM:Kevin Norton, Director of Water Utilities KevinN@cctexas.com (361) 826-1874 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com 361-826-3169 CAPTION: Motion authorizing a one-year rental agreement with Herc Rentals Inc., of Corpus Christi, Texas, for on-call rental of mini-excavators and attachments used daily by Water Utilities Department for emergency repairs and construction of water and wastewater infrastructure, for a total amount not to exceed $180,726.00, effective upon issuance of a notice to proceed, with funding through the Water and Wastewater Funds. SUMMARY: This item is to approve a rental agreement for excavators for the Water Utilities Maintenance of Lines Division, for an amount not to exceed $180,726.00, to be used when the City’s mini-excavators are non-operational and while two replacement mini- excavators are procured in Fiscal Year 2020. This equipment will be used for construction work and emergency repairs of water and wastewater infrastructure throughout the City. BACKGROUND AND FINDINGS: Water Utilities Department has nineteen mini-excavators in the fleet that are used daily by construction and repair crews. The previous Rental Agreement with Herc Rentals, Inc. expired on June 6, 2019, and this contract was primarily used when City excavators were in the shop for extended repair or maintenance periods. Water Utilities Department reached out to the Contracts and Procurement Department to issue a solicitation for a new contract, and the City has continued month-to-month rentals of three mini-excavators Rental of Excavators for Water Utilities AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 until a new rental contract can be obtained. The three rentals are being used while two replacement mini-excavators are procured in FY20 and because a 2005 Yanmar mini- excavator is now experiencing frequent breakdowns and will soon need to be replaced. This contract is being awarded through the Buy Board. Contracts awarded through the Buy Board Cooperative have been competitively procured, in compliance with Texas local and state procurement requirements. ALTERNATIVES: An alternative is not entering into a rental agreement. This would result in delays in construction work and prolonged response to emergency repairs; therefore, creating a loss of service to City customers. FISCAL IMPACT: The financial impact is an amount not to exceed $180,726.00 for a one-year rental agreement with Herc Rentals Inc., of Corpus Christi, Texas, for rental of excavators and attachments used daily by Water Utilities Department for emergency repairs and construction of water and wastewater infrastructure throughout the City. This rental agreement will be used when City excavators are non-operational and when replacement equipment is being procured. FUNDING DETAIL: Fund:4200 Wastewater Fund Organization/Activity:33400 Wastewater Collection System Mission Element: 042 Project # (CIP Only): N/A Account: 530160 Rentals FUNDING DETAIL: Fund 4010 Water Fund Organization/Activity:31520 Treated Water Delivery System Mission Element: 041 Project # (CIP Only): N/A Account: 530160 Rentals RECOMMENDATION: Staff recommends approval of this motion authorizing a one-year rental agreement with Herc Rentals Inc. for the rental agreement of heavy equipment as presented. LIST OF SUPPORTING DOCUMENTS: Rental Agreement Price Sheet Item Equipment Description Qty UOM Unit Price Total 1 Excavator Mini 240-1200 John Deere 17G or Equivalent 12 MO 1,305.00 15,660.00$ 2 Excavator Mini 240-1200 John Deere 17G or Equivalent 12 MO 1,305.00$ 15,660.00$ 3 Excavator Mini 240-1300 E26 Bobcat or Equivalent 12 MO 1,305.00$ 15,660.00$ 4 Excavator Mini 240-1300 E26 Bobcat or Equivalent 12 MO 1,305.00$ 15,660.00$ 5 Excavator 240-1400 E35 Bobcat or Equivalent 12 MO 1,445.00$ 17,340.00$ 6 Excavator 240-1400 E35 Bobcat or Equivalent 12 MO 1,445.00$ 17,340.00$ 7 Excavator Attachment E26 Bobcat or Equivalent 12 MO 1,148.00$ 13,776.00$ 8 Excavator Attachment E26 Bobcat or Equivalent 12 MO 1,148.00$ 13,776.00$ 9 Excavator Attachment E35 Bobcat or Equivalent 12 MO 1,148.00$ 13,776.00$ 10 Excavator Attachment E35 Bobcat or Equivalent 12 MO 1,148.00$ 13,776.00$ 11 Excavator Attachment John Deere 17G or Equivalent 12 MO 1,148.00$ 13,776.00$ 12 Excavator Attachment John Deere 17G or Equivalent 12 MO 1,148.00$ 13,776.00$ 13 Delivery & Pickup 1 LS 750.00$ 750.00$ 180,726.00$ City of Corpus Christi Contracts & Procurement Senior Buyer: Cynthia Perez Herc Rentals Corpus Christi, TX GRAND TOTAL Contract No. 2019000318 Price Sheet Heavy Equipment Rental BuyBoard Contract - US Communities Service Agreement Standard Form Page of Approved as to Legal Form July 11, 2019 THIS ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and Herc Rentals Inc. (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Rental of for Utilities Department in response to Request for Bid/Proposal No. 74369 (“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: Contractor will provide Rental of for Utilities Department (“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. This Agreement is for year, 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. This Agreement is for an amount not to exceed $180,726.00, 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. Invoices will be mailed to the following address with a copy provided to the Contract Administrator: Service Agreement Standard Form Page of Approved as to Legal Form July 11, 2019 City of Corpus Christi Attn: Accounts Payable P.O. Box 9277 Corpus Christi, Texas 78469-9277 The Contract Administrator designated by the City is responsible for approval of all phases of performance and operations under this Agreement, including deductions for non-performance and authorizations for payment. The City’s Contract Administrator for this Agreement is as follows: Name : Joanna Moreno Department: Utilities Department Phone: (361) 826-1649 Email: JoannaM@cctexas.com (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. 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 of Approved as to Legal Form July 11, 2019 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. (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. 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. . 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. 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 of Approved as to Legal Form July 11, 2019 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. This Agreement may be amended or modified only in writing executed by authorized representatives of both parties. No waiver by either party of any breach of any term or condition of this Agreement waives any subsequent breach of the same. 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. 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: City of Corpus Christi Attn: Joanna Moreno Title: Contracts/Fund Administrator Address: 2726 Holly Road, Corpus Christi, Texas 78415 Phone:(361) 826-1649 Fax: (361) 826-4495 Herc Rentals, Inc. Attn: Jason Oosterbeek Title: Vice-President Address: 313 South Padre Island Drive Corpus Christi, Texas 78405 Phone: (361) 244-9660 Fax: N/A Service Agreement Standard Form Page of Approved as to Legal Form July 11, 2019 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. (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. 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 of Approved as to Legal Form July 11, 2019 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. 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. 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). 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. 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. 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. Service Agreement Standard Form Page of Approved as to Legal Form July 11, 2019 CONTRACTOR Signature: Printed Name: Title: Date: CITY OF CORPUS CHRISTI ________________________________________________ Kim Baker Director of Contracts and Procurement Date: _________________________ Attachment A: Scope of Work Attachment B: Bid/Pricing Schedule Attachment C: Insurance and Bond Requirements Attachment D: Warranty Requirements Exhibit 1: RFB/RFP No. 74369 Exhibit 2: Contractor’s Bid/Proposal Response Jason Oosterbeek Vice President 9/12/2019 Page 1 of 2 RFQ Revised 4.19.2019 ATTACHMENT A- SCOPE OF WORK The Contractor shall supply excavators and excavator attachments for a period of twelve (12) months for the Utilities Department. The Contractor shall deliver and pick up equipment upon notification. 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. 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 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. Attachment C – Bond Requirements No bond requirements necessary for this service agreement; Section 5. Insurance; Bonds Subsection (B) is null for this service agreement. Attachment D - Warranty Requirements No specific warranty requirements are necessary for this service agreement; therefore, Section 8. Warranty, Sub Section (B) is null for this service agreement. DATE:November 12, 2019 TO:Peter Zanoni, City Manager FROM:Kevin Norton, Director of Water Utilities KevinN@cctexas.com (361) 826-1874 Kim Baker, Director of Contracts and Procurement Department KimB2@cctexas.com (361) 826-3169 CAPTION: Resolution authorizing a five-year service agreement with Pump Solutions, Inc. of New Caney, Texas for a total amount not to exceed $125,884.00 for maintenance and repairs of the three Amacan pumps at the Rincon Bayou Pump Station, effective upon issuance of notice to proceed, with funding in FY2020 in an amount of $74,061.00 through the Water Fund. SUMMARY: This item approves a five-year service agreement for maintenance and repairs for the three Amacan pumps at the Rincon Bayou Pump Station for an amount not to exceed $125,884.00. Pump #1 was overhauled in May of 2018, and Pump #2 was overhauled in June of 2017, thus leaving Pump #3 to be overhauled/rebuilt. These pumps are approximately 15 years old. BACKGROUND AND FINDINGS: The Rincon Bayou Pump Station was established as part of the Rincon Bayou Diversion Project. The flow of freshwater from Wesley Seale Dam into Nueces Bay Estuary is dependent on the Rincon Bayou Pump Station moving water into the Nueces Bay Estuary. The Texas Commission on Environmental Quality (TCEQ) agreed order issued on April 5, 2001, requires that the City of Corpus Christi allow fresh water to "pass through" the reservoir system to the Nueces Estuary each month. The monthly “pass through” requirement, or target, is dependent on several variables: Service Agreement for Maintenance and Repairs of Three Amacan Pumps at Rincon Bayou Pump Station AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 Measured inflow into the reservoir system Percent capacity of the reservoir system Month of the year Salinity level in Nueces Bay These pumps are crucial to meet the requirements set forth by the agreed order. The purchase of these services is through a sole source. Pumps Solution, Inc. is the exclusive and only authorized Distributor of Sales, Parts and Service for these Amacan pumps. ALTERNATIVES: An alternative is to operate equipment to failure, which could result in a TCEQ violation due to non-compliance with the agreed order. Another alternative is to purchase new pumps for Rincon Bayou, which would cost several million dollars for the purchase, set up, and maintenance fees to replace these pumps. FISCAL IMPACT: The fiscal impact for the Utilities Department in FY2020 is $74,061.00, for the first year of this five-year service agreement, for the maintenance and repairs of three Amacan pumps at the Rincon Bayou Pump Station. This cost includes approximately $45,319.00 for the overhaul/rebuild of Pump #3. The remaining cost for the years to follow will be funded in future years through the annual budget process. FUNDING DETAIL: Fund:4010 Water Fund Organization/Activity:30280 Rincon Bayou Pump Station Mission Element:061 Manage Raw Water Storage Project # (CIP Only): N/A Account:530215 Maintenance & Repairs-Contracted RECOMMENDATION: Staff recommends approval of this resolution authorizing a five-year service agreement with Pump Solutions, Inc. of New Caney, Texas for maintenance and repairs of the three Amacan pumps as presented. LIST OF SUPPORTING DOCUMENTS: Resolution Price Sheet Service Agreement Page 1 of 2 Resolution authorizing a five-year service agreement with Pump Solutions, Inc. of New Caney, Texas for a total amount not to exceed $125,884.00 for maintenance and repairs of the three Amacan pumps at the Rincon Bayou Pump Station, effective upon issuance of notice to proceed, with funding in FY2020 in an amount of $74,061.00 through the Water Fund. WHEREAS, Pump Solutions, Inc. will provide preventative maintenance and parts on three Amacan pumps located at the Rincon Bayou Pump Station; WHEREAS, these services, are critical in sustaining the pumps. WHEREAS, State law provides that such procurements, as outlined above, are subject to statutory procurement requirements, including competitive bids, unless an exception applies; WHEREAS, there are two statutory exceptions for this procurement in Local Government Code, Section 252.022(a) (2) and (a) (7) (A), as this purchase is necessary to preserve or protect the public health and safety of the municipality’s residents and this item is available from only once source because of patents, copyrights, secret processes, or natural monopolies. Be it resolved by the City Council of the City of Corpus Christi, Texas: Section 1. The City Council specifically finds that the foregoing statements included in the preamble of this resolution are true and correct and adopts such findings for all intents and purposes related to the authorization of this procurement. Section 2. The City Manager, or designee, is authorized to execute all documents necessary to secure a service agreement for preventative maintenance and purchase of parts for three pumps at the Rincon Bayou Pump Station, for a total amount not to exceed $125,884.00, and funded through the Water Fund. Page 2 of 2 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 Service Agreement Standard Form Page 1 of 7 Approved as to Legal Form July 11, 2019 SERVICE AGREEMENT NO. 75397 Maintenance and Repairs for Three Amacan Pumps at Rincon Bayou Pump Station THIS Maintenance and Repairs for Three Amacan Pumps at Rincon Bayou Pump Station Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and Pump Solutions, Inc. (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Maintenance and Repairs for Three Amacan Pumps at Rincon Bayou Pump Station in response to Request for Bid/Proposal No. SS-75397 (“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 Maintenance and Repairs for Three Amacan Pumps at Rincon Bayou Pump Station (“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 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 $125,884.00, 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 July 11, 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: Diana Zertuche-Garza Department: Utilities Department Phone: (361) 826-1827 Email: dianaG@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 Service Agreement Standard Form Page 3 of 7 Approved as to Legal Form July 11, 2019 purchase release order must refer to this Agreement, and Services will not be rendered until the Contractor receives the signed purchase release order. 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. Service Agreement Standard Form Page 4 of 7 Approved as to Legal Form July 11, 2019 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. 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: Diana Zertuche-Garza Title: Contracts/Funds Administrator Address: 2726 Holly Road, Corpus Christi, Texas 78415 Phone: (361) 826-1827 Fax: (361) 826-1715 IF TO CONTRACTOR: Pump Solutions, Inc. Attn: Phil Korenek Service Agreement Standard Form Page 5 of 7 Approved as to Legal Form July 11, 2019 Title: President Address: 18594 US Hwy. 59, New Caney, Texas 77357 Phone: (281) 399-9400 Fax: (281) 399-9401 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. Service Agreement Standard Form Page 6 of 7 Approved as to Legal Form July 11, 2019 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 negotiations, arrangements, agreements and understandings, either oral or written, between the parties. Attachment A - Scope of Work 1.1. General Requirements A. The Contractor will provide maintenance and repair services for three Amacan Pumps located at the Rincon Bayou Pump Station. B. The Contractor will pull and inspect the Amacan pumps. The oil will be changed, and the pumps will be inspected for wear and tear. The Bellmouth O-ring’s will be replaced as well. The pumps will be meggered and all electrical connections will be checked and tightened. The pump protection modules will be inspected and replaced if necessary. The pumps will be reinstalled and started up. Included with this agreement is one emergency technical visit and parts/materials allowance for any emergency repairs. C. The Utilities - Water Department is located at 13101 Leopard St., Corpus Christi, Texas, 78410. The work will be performed at Rincon Bayou Pump Station located at 2340 Private Road 1929, Odem, Texas 78370. D. The hours of operation are Monday through Friday 8:00 am to 5:00 pm, excluding holidays. Attachment B- Pricing Schedule Attachment C - Insurance Requirements I. CONTRACTOR’S LIABILITY INSURANCE A. Contractor must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. B. Contractor must furnish to the City’s Risk Manager and Park & Recreation Director one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies by endorsement, and a waiver of subrogation endorsement is required on GL, AL and WC if applicable. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-day advance written notice of cancellation, non-renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1.Commercial Broad Form 2.Premises – Operations 3.Products/Completed Operations 4.Contractual Liability 5.Independent Contractors 6.Personal Injury- Advertising Injury $1,000,000 Per Occurrence $1,000,000 Aggregate AUTO LIABILITY (including) 1.Owned 2.Hired and Non-Owned 3.Rented/Leased $1,000,000 Combined Single Limit WORKERS’S COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employers Liability Statutory and complies with Part II of this Exhibit. $500,000/$500,000/$500,000 BAILEE’S CUSTOMER GOODS $250,000 Per Occurrence MOTOR TRUCK CARGO (or) TRIP TRANSIT $250,000 Combined Single Limit RIGGERS’ LIABILITY $1,000,000 Per Occurrence C. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II.ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Contractor must obtain workers’ compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers’ compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers’ Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage written on an occurrence basis by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. C. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: •List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; •Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; •Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and •Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non-renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non-renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. F. In addition to any other remedies the City may have upon Contractor's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor’s performance of the work covered under this contract. H. It is agreed that Contractor's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2019 Insurance Requirements Ins. Req. Exhibit 4-P Contracts for General Services – Services Performed Onsite-Offsite – Riggers Liability - Cargo Transit - Bailees 09/13/2019 Risk Management – Legal Dept. Attachment D - Warranty Requirements The Contractor shall provide one-year warranty on workmanship. Item Equipment Description Qty UOM Unit Price Total 1 Pump No.3 Repair 1 Each 45,319.00$ 2 Power, Cable and Motor 1 Each 27,742.00$ 3 Tear Down Fee 1 Each 1,000.00$ 4 Maintenance on Pumps 3 Each 27,723.00$ 5 Emergency Technical Visit 1 Each 9,600.00$ 6 Parts and Material Allowance 1 Each 14,500.00$ 125,884.00$ City of Corpus Christi Contracts & Procurement Senior Buyer: Cynthia Perez Pump Solutions, Inc. New Caney, Texas GRAND TOTAL Price Sheet Maintenance and Repairs for Amacan Pumps at Rincon Bayou DATE:November 12, 2019 TO:Peter Zanoni, City Manager FROM:Albert Quintanilla, Director of Street Operations KevinN@cctexas.com (361)-826-1874 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361)-826-3169 CAPTION: Resolution authorizing a three-year supply agreement with J.Q & G Incorporated, dba OB Traffic, of Roanoke, Virginia in an amount not to exceed $226,500.00 for the purchase of up to 30 traffic signal cabinets, for Street Operations effective upon issuance of notice to proceed, with FY 2020 funding in the amount of $75,500.00 available through the Street Fund. SUMMARY: This resolution authorizes a supply agreement with J.Q & G Incorporated, dba OB Traffic, forup to 30traffic signal cabinets.These new cabinets are National Electrical Manufacturers Association (NEMA)TS-2 and will replace the older obsolete signal cabinets and assemblies currently in use. BACKGROUND AND FINDINGS: The City has 251 signalized traffic intersections which are maintained by the Traffic Signal division. Each intersection is equipped with a traffic cabinet, traffic controller and various other control components. The existing NEMA TS-1 Traffic Cabinets have limited functionality and are not compatible with the latest and newer technology to interact with the City’s Traffic Management Center (TMC). The new cabinets NEMA TS-2 will replace the older obsolete signal cabinets and assemblies currently in use. New cabinets will improve traffic management operations by allowing remote access to traffic signal programming and signal timing from TMC. In addition, the new cabinets will have Malfunction Management Units (MMU-2), which will automatically notify The City’s TMC of signal malfunctions. In the event of a traffic signal malfunction, repair or reset signals can be sent from the TMC to attempt to repair the malfunction, in lieu of dispatching a field signal repair Supply Agreement for Traffic Signal Cabinets AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 technician, which improves traffic safety by decreasing our employee exposure to traffic and by potentially expediting traffic signal restoration after a malfunction. The Contracts and Procurement Department conducted a competitive Request for Bid (RFB) process and received five responsive, responsible bids, and is recommending award to J.Q & G Incorporated dba OB Traffic for Traffic Signal Cabinets as the lowest responsive, responsible bidder. ALTERNATIVES: An alternative to accepting the lowest, responsive, responsible bidder, J.Q & G Incorporated dba OB Traffic would be to reject all bids and continue with the existing cabinets, which has a limited functionality and are not compatible with the latest and newer technology to interact with the City’s Traffic Management Center(TMC). FISCAL IMPACT: The fiscal impact for Street Operations in FY 2020 is $75,500.00 for this three-year supply agreement with J.Q & G Incorporated dba OB Traffic for the purchase of up to 30 Traffic Signal Cabinets, with the remaining cost funded in future years through the annual budget process. Funding Detail: Fund:1041 Streets Organization/Activity: 12310 Mission Element:053 Operate and Maintain Project # (CIP Only): N/A Account:550040 Other Equipment RECOMMENDATION: Staff recommends approval of this resolution authorizing a supply agreement with J.Q & G Incorporated dba OB Traffic for up to 30 Traffic Signal Cabinets as presented. LIST OF SUPPORTING DOCUMENTS: Resolution Supply Agreement Bid Tabulation Page 1 of 2 Resolution authorizing a three-year supply agreement with J.Q & G Incorporated, dba OB Traffic, of Roanoke, Virginia in an amount not to exceed $226,500.00 for the purchase of up to 30 traffic signal cabinets, for Street Operations effective upon issuance of notice to proceed, with FY 2020 funding in the amount of $75,500.00 available through the Street Fund. WHEREAS, Traffic Signal Cabinets NEMA TS-2 will replace the older obsolete signal cabinets; WHEREAS, the City received five bids for Traffic Signal Cabinets in response to Request for Bids (“RFB”) 2218 of which the lowest responsive, responsible bidder may be awarded the bid; WHEREAS, the lowest responsive, responsible bidder is J.Q & G Incorporated dba OB Traffic in the amount of $226,500.00; WHEREAS, state law provides that such procurements, as outlined above, are subject to statutory procurement requirements, including competitive bids, unless an exception applies; WHEREAS, state law provides that, if the competitive sealed bidding requirement applies to a contract for goods or services, the contract must be awarded to the lowest responsive, responsible bidder or to the bidder that provides the best value, pursuant to Texas Local Government Code §252.043(a); WHEREAS, in the event the lowest responsive, responsible bidder fails to execute the contract for the awarded item or fails to perform under a contract for any awarded items, the City Manager, or designee, is authorized to execute a contract for the remainder of the contract term with the next lowest bidder, in succession, in order to secure replacement of Traffic Signal Cabinets. Be it resolved by the City Council of the City of Corpus Christi, Texas: Section 1. The City Council specifically finds that the foregoing statements included in the preamble of this resolution are true and correct and adopts such findings for all intents and purposes related to the authorization of this procurement. Section 2. The City Manager, or designee, is authorized to execute contracts with the lowest responsive, responsible bidder in accordance with the terms and conditions stated in RFB 2218. Furthermore, in the event the lowest responsive, responsible bidder fails to execute the contract for the awarded item or fails to perform under a contract for any awarded item, the City Manager, or designee, is authorized to execute a contract for the remainder of the contract term with the next lowest bidder, in succession , in order to secure replacement of Traffic Signal Cabinets. Page 2 of 2 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 Item Description Unit Qty Unit Rate Unit Rate Total Price Unit Rate Total PriceUnit Rate Total Price Unit Rate Total Price1Traffic Signal Cabinet Assembly, NEMA TS-2 Type 1EA 30.00 $ 7,550.00 $ 9,250.00 $ 277,500.00 $ 9,400.00 $ 282,000.009,400.00$ 282,000.00$ 9,739.00$ 292,170.00$ $ 277,500.00 $ 282,000.00282,000.00$ 292,170.00$ $ 226,500.00Total$ 226,500.00Paradigm Traffic, Arlington, TXTotal PriceTexas Highway Products, Round Rock, TexasJ.Q & G Incorporated dba OB Traffic Roanoke, VAMoboTrex, Inc Austin, TXPeek Traffic Corporation, Houston, TXBid TabulationRFB 2218 - Traffic Signal CabinetsStreets OperationCity of Corpus ChristiContracts and Procurement DepartmentBUYER : JAPAN SHAH Paul Omiyo President of Operations 10.08.2019 DATE:November 12, 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 two-year supply agreement with Wilnat Inc., dba Koons Gas Measurement of Tulsa, Oklahoma in an amount not to exceed $139,750.00 to purchase residential gas regulators, effective upon issuance of notice to proceed, with FY 2020 funding in an amount of $58,229.17 available through the Gas Fund. SUMMARY: This motion authorizes a supply agreement with Wilnat Inc., dba Koons Gas Measurement of Tulsa, Oklahoma for an amount not to exceed $139,750.00 for residential gas regulators for the Gas Department. These regulators will be used to replace aging regulators, for new construction, and for meter exchanges that utilize the old-style regulator. BACKGROUND AND FINDINGS: The Gas Department uses residential gas regulators to reduce the gas pressure from the City’s main gas line into the customer’s line. Regulating the gas pressure is a necessary safety measure which allows the customer to safely operate gas appliances. Currently, there is no supply agreement in place for this item. The department has been procuring regulators, on an as needed basis, via individual Request for Quotes (RFQs). Koons Gas Measurement has been the main supplier of regulators in previous procurements. Supply Agreement for Residential Gas Regulators AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 The Contracts and Procurement Department conducted a competitive RFB process to obtain bids for a supply agreement. The City received three qualified bids for gas regulators. Staff recommends award to the lowest responsive, responsible bidder, Wilnat, Inc dba Koons Gas Measurement. ALTERNATIVES: There are no viable alternatives. Gas regulators are necessary to protect the safety of City residents. The bid from Wilnat Inc. is responsive and within budget. FISCAL IMPACT: The fiscal impact for Gas Operations in FY 2020 is $58,229.17 for this two-year supply agreement with Wilnat, Inc, dba Koons Gas Measurement for the purchase of residential gas regulators, with the remaining cost funded in future years through the annual budget process. Funding Detail: Fund:4130 Gas Fund Organization/Activity:34130 Gas Construction Mission Element:022 Manage Gas distribution system Project # (CIP Only): N/A Account:520150 Meter/serv RECOMMENDATION: Staff recommends approval of this motion authorizing a two-year supply agreement with Wilnat Inc., dba Koons Gas Measurement for residential gas regulators as presented. LIST OF SUPPORTING DOCUMENTS: Supply Agreement Bid Tabulation Item Description Unit Qty 2 Years Unit Rate Total Price Unit Rate Total Price Unit Rate Total Price 1 Gas Regulators EA 5,000.00 27.95$ 139,750.00$ 31.67$ 158,350.00$ 33.20$ 166,000.00$ 139,750.00$ 158,350.00$ 166,000.00$ Total City of Corpus Christi Contracts and Procurement Department BUYER : JAPAN SHAH Wilnat Inc, Tulsa, OK, USA Puffer Sweiven Corpus Christi, TX, USA Western Water and Gas Products Ltd, Surrey, BC, Canada Bid Tabulation RFB 2495- Gas Regulators Utilities Department Supply Agreement Standard Form Page 1 of 7 Approved as to Legal Form July 11, 2019 SUPPLY AGREEMENT NO. 2495 Gas Regulators THIS Gas Regulators Supply Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and Wilnat, Inc dba Koons Gas Measurement (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Gas Regulators in response to Request for Bid No. 2495 (“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 Gas Regulators 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 two 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 $139,750.00, subject to approved extensions and changes. Payment will be made for goods delivered and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. 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: Joanna Moreno Department: Gas Operations Phone: 361-826-1649 Email:JoannaM@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 division. 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. Supply Agreement Standard Form Page 3 of 7 Approved as to Legal Form July 11, 2019 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: Joanna Moreno Title: Contracts/Fund Administrator Address: 2726 Holly Road, Corpus Christi, Texas 78415 Phone: 361-826-1649 Fax: 361-8296-4495 IF TO CONTRACTOR: Wilnat, Inc dba Koons Gas Measurement Attn: Nathan Harris Title: Company Representative Address: 10934 E. 55th Place, Tulsa, Oklahoma 74146 Phone: 918-794-9494 Fax: 918-794-5575 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) Page 1 of 2 ATTACHMENT A: SCOPE OF WORK 1.1 General Requirements/Background Information A. The Contractor shall provide Gas regulators as per specification outlined in this Scope of Work. B. The quantities are an estimated quantity. Order will be placed as needed. 1.2 Gas Regulator Specification Size of Inlet 1” NPT Size of Outlet 1” NPT Inlet pressure 5 to 35 psig Outlet pressure setting 7” water column with spring range of 6” – 15” w/c Diaphragm case Aluminum with a diameter of 6” Fasteners Cadmium plated steel Valve seat Shall be easy to replace after separating the diaphragm housing from the body. Material – Buna – N Vent 1” NPT facing down when regulator is in a vertical position. Opening must be covered with a bug proof corrosive screen. Mounting position When facing spring on a vertical diaphragm case, vent down, and the body to the right with the inlet down. Diaphragm case To be connected to body allowing four, 90-degree positions. Internal Release valve (IRV) Yes 1.3 Order Placement and Delivery A. The City will place an order as needed. B. Deliveries shall be accepted Monday to Friday (excluding City Holidays) between the hours of 8:00 AM to 4:00 PM, Central Standard Time. C. Delivery F.O. B: Gas Department, 4225 S. Port Avenue, Corpus Christi, TX 78415 Page 2 of 2 1.4 Invoicing The Contractor shall invoice after each delivery. The Supplier’s invoice shall contain Supply Agreement No, Delivery Address, Product type and quantity 1.5 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. 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 Page 2 of 3 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. 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. Page 3 of 3 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 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 Insurance; Bonds subsection 5(B) is null to this Service Agreement. Page 1 of 1 ATTACHMENT D: WARRANTY REQUIREMENTS A. The Contractor shall warrant Gas regulators against defects arising from faulty material, faulty workmanship for a period of 12 months or manufacturer warranty following the acceptance of the goods. B. Within warranty period, the Contractor shall repair or replaced without any cost to the City of Corpus Christi and the Contractor must cover all shipping costs. DATE:November 12, 2019 TO:Peter Zanoni, City Manager FROM:Jim Davis, Director of Asset Management JimD@cctexas.com (361) 826-1909 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Motion authorizing three, three-year supply agreements for a total amount not to exceed $862,332.75, with an agreement with each of the following vendors: T&W Tire, LLC, of Oklahoma City, Oklahoma, in the amount of $296,030.00 for the purchase of tires for refuse trucks for Solid Waste; Southern Tire Mart, LLC, of Columbia, Mississippi in the amount of $158,202.00 for the purchase of tires for Tahoe police vehicles; and, The Goodyear Tire & Rubber Company, of Akron, Ohio in the amount of $408,100.75 for the purchase of tires for police pursuit vehicles, effective upon issuance of notice to proceed, with FY 2020 funding in an amount of $287,444.25 available through the Fleet Maintenance Fund. SUMMARY: This motion authorizes the purchase of tires for refuse trucks and police vehicles. Tires for refuse trucks will help the department perform their duties in keeping our city clean. The purchase of police tires is necessary to maintain a safe work environment for our first responders and our citizens. BACKGROUND AND FINDINGS: The tires for the refuse trucks are specialized in that they need to endure heavy loads, be dependable in terms of not being susceptible to leaks and flats and be able to withstand the hard maneuvering that refuse trucks demand. The pursuit tires are specialized in that Purchase of Tires for Solid Waste Refuse Trucks and Police Vehicles AGENDA MEMORANDUM Action Item for the City Council Meeting November 12, 2019 they need to withstand the stress of high speed, remain intact and provide traction in all conditions. Both types of tires are highly specialized and are essential for the health and safety of this City. The Contracts and Procurement Department conducted a competitive request for bid (RFB) process to obtain bids for new contracts. The City received four responsive, responsible bids, and is recommending the awards to T&W Tire LLC, Southern Tire Mart LLC, and The Goodyear Tire and Rubber Company as the lowest responsive, responsible bidders. ALTERNATIVES: An alternative to accepting this bid would be to buy inferior brand tires which would result not only in a poor outcome, but unsafe conditions for the first responders. FISCAL IMPACT: The fiscal impact for the Fleet Maintenance Services in FY 2020 is $287,444.25 for these three, three-year supply agreements for the purchase of tires for refuse trucks and police vehicles, with the remaining cost funded in future years through the annual budget process. FUNDING DETAIL: Fund:5100 Fleet Maintenance Fund Organization/Activity:40180 Parts Room Operation Mission Element:202 Maintain the Fleet Project # (CIP Only): N/A Account:520210 Cost of Goods Sold RECOMMENDATION: Staff recommends approval of this motion authorizing three-year agreements with T&W Tire LLC, Southern Tire Mart LLC and The Goodyear Tire and Rubber Company for tires as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation Supply Agreement City of Corpus Christi Bid Tabulation Contracts and Procurement Department RFB No. 2362 Buyer: Minerva Alvarado Tires for Fleet Item Description Unit QTY Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price 1 11R22.5 - Year 1 EA 350 315.00$ 110,250.00$ 350.00$ 122,500.00$ 275.00$ 96,250.00$ 310.00$ 108,500.00$ 2 11R22.5 - Year 2 EA 350 324.00$ 113,400.00$ 357.50$ 125,125.00$ 281.88$ 98,658.00$ 310.00$ 108,500.00$ 3 11R22.5 - Year 3 2 EA 350 334.00$ 116,900.00$ 365.00$ 127,750.00$ 288.92$ 101,122.00$ 326.00$ 114,100.00$ 340,550.00$ 375,375.00$ 296,030.00$ 331,100.00$ Item Description Unit QTY Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price 1 P265/60R17 Firehawk - Year 1 EA 423 121.00$ 51,183.00$ -$ -$ 135.00$ 57,105.00$ 2 P265/60R17 Firehawk - Year 2 EA 423 125.00$ 52,875.00$ 145.00$ 61,335.00$ 3 P265/60R17 Firehawk - Year 3 EA 423 128.00$ 54,144.00$ 155.00$ 65,565.00$ 158,202.00$ 184,005.00$ Item Description Unit QTY Unit Price Total Price Unit Price Total Price Unit Price Total Price 1 P235/55R17 Goodyear Eagle RSA - Year 1 EA 150 104.00$ 15,600.00$ 120.00$ 18,000.00$ 2 P235/55R17 Goodyear Eagle RSA - Year 2 EA 150 106.00$ 15,900.00$ 122.00$ 18,300.00$ 3 P235/55R17 Goodyear Eagle RSA - Year 3 EA 150 108.00$ 16,200.00$ 124.00$ 18,600.00$ 4 P245/55R18 Goodyear Eagle RSA - Year 1 EA 425 121.00$ 51,425.00$ 139.00$ 59,075.00$ 5 P245/55R18 Goodyear Eagle RSA - Year 2 EA 425 123.00$ 52,275.00$ 141.00$ 59,925.00$ Group 1 Group 2 Group 3 Southern Tire Mart Corpus Christi, TX The Goodyear Tire & Rubber Company T&W Tire, LLC Oklahoma City, OK Beasley Tire Service - Houston Inc Houston, TXAkron, OH No Bid No Bid Item Description Unit QTY Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price 6 P245/55R18 Goodyear Eagle RSA - Year 3 EA 425 125.00$ 53,125.00$ 144.00$ 61,200.00$ 7 P205/60R16 Goodyear Eagle Sport - Year 1 EA 25 70.24$ 1,756.00$ 80.00$ 2,000.00$ 8 P205/60R16 Goodyear Eagle Sport - Year 2 EA 25 72.00$ 1,800.00$ 83.00$ 2,075.00$ 9 P205/60R16 Goodyear Eagle Sport - Year 3 EA 25 74.00$ 1,850.00$ 85.00$ 2,125.00$ 10 225/70R15 Goodyear WRL SRA - Year 1 EA 50 87.52$ 4,376.00$ 101.00$ 5,050.00$ 11 225/70R15 Goodyear WRL SRA - Year 2 EA 50 89.00$ 4,450.00$ 102.00$ 5,100.00$ 12 225/70R15 Goodyear WRL SRA - Year 3 EA 50 92.00$ 4,600.00$ 100.00$ 5,000.00$ 13 225/50R17 Goodyear Eagle Sport - Year 1 EA 75 85.75$ 6,431.25$ 99.00$ 7,425.00$ 14 225/50R17 Goodyear Eagle Sport - Year 2 EA 75 87.50$ 6,562.50$ 101.00$ 7,575.00$ 15 225/50R17 Goodyear Eagle Sport - Year 3 EA 75 90.00$ 6,750.00$ 104.00$ 7,800.00$ 16 225/70R19.5 Goodyear G622 RSD - Year 1 EA 150 215.00$ 32,250.00$ 247.00$ 37,050.00$ 17 225/70R19.5 Goodyear G622 RSD - Year 2 EA 150 220.00$ 33,000.00$ 253.00$ 37,950.00$ 18 225/70R19.5 Goodyear G622 RSD - Year 3 EA 150 225.00$ 33,750.00$ 259.00$ 38,850.00$ 19 225/70R19.5 Goodyear G647 RSS - Year 1 EA 100 215.00$ 21,500.00$ 247.00$ 24,700.00$ 20 225/70R19.5 Goodyear G647 RSS - Year 1 EA 100 220.00$ 22,000.00$ 253.00$ 25,300.00$ 21 225/70R19.5 Goodyear G647 RSS - Year 1 EA 100 225.00$ 22,500.00$ 259.00$ 25,900.00$ $408,100.75 $ 469,000.00 Beasley Tire Service - Houston Inc Corpus Christi, TX Akron, OH Oklahoma City, OK Houston, TX No Bid Southern Tire Mart No Bid The Goodyear Tire & Rubber Company T&W Tire, LLC Supply Agreement Standard Form Page 1 of 7 SUPPLY AGREEMENT NO. 2504 Tires for Fleet THIS Tires for Fleet Supply Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and T&W Tire, LLC (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Tires for Fleet in response to Request for Bid No. 2362 (“RFB”), which RFB includes the required scope of work and all specifications and which RFB 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 Tires for Fleet 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 $296,030.00, subject to approved extensions and changes. Payment will be made for goods delivered and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. 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: City of Corpus Christi Supply Agreement Standard Form Page 2 of 7 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: Erlinda Klubertanz General Service Department 361-826-1903 Erlinda@cctexas.com 5. Insurance (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 on General Liability and Auto Liability policies. The City Attorney must be given copies of all insurance policies within 10 days of the City Manager's written request, except that the Contractor is not required to provide the policy documents without a court order if it is a publicly-traded entity. 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 division. 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 re-worked immediately at no charge to the City. If prompt 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 reasonable costs over the item’s bid price, must be paid by the Contractor within 30 days of receipt of City’s invoice. Supply Agreement Standard Form Page 3 of 7 8. Warranty. (A) The Contractor warrants that all products supplied under this Agreement are new, quality items that are free from defects, and will receive the full benefit of the manufacturer’s applicable standard warranty for such products. 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 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 applicable 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: Erlinda Klubertanz Operations Manager 5352 Ayers, Bldg 3B, Corpus Christi, TX 78415 Phone: 361-826-1903 Fax: 361-826-4394 IF TO CONTRACTOR: T&W Tire, LLC Attn: Josh Thompson Business Development 25 N. Council Rd., Oklahoma City, OK 73127 Phone: 405-787-6711 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, REASONABLE ATTORNEYS’ FEES AND EXPERT WITNESS FEES, TO THE EXTENT THAT THEY ARISE OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT BY CONTRACTOR OR ITS EMPLOYEES, OR AGENTS, OR RESULTS FROM THE NEGLIGENT Supply Agreement Standard Form Page 5 of 7 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 REASONABLY SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL REASONABLE 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 either Party, or of any right or interest contained herein, is effective unless the other Party first gives written consent to such assignment except that the City may assign this Agreement to any other person or governmental entity that succeeds to the governmental powers and authority of the City without consent. 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 Supply Agreement Standard Form Page 6 of 7 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 applicable 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. Supply Agreement Standard Form Page 7 of 7 CONTRACTOR Signature: Printed Name: Title: Date: CITY OF CORPUS CHRISTI ________________________________________________ Kim Baker Director of Contracts and Procurement Date: _________________________ APPROVED AS TO LEGAL FORM: ______________________________________________________ Assistant City Attorney 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. 2362 Exhibit 2: Contractor’s Bid Response JOSH THOMPSON Business Development Director 8/11/2019 Attachment A: Scope of Work 1.1 Scope of Work A.The Contractor shall provide new tires on an as needed basis. B.The Contractor shall maintain stock in sufficient amount and sizes of tires to supply the reasonable demands of the City. C.Tires include: Group 1 - 11R22.5 – 16 ply, drive tire, open shoulder, cut and chip resistant as outlined on Attachment B-Bid/Pricing Schedule. 1.2 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. 1.3 Special Instructions A.Tires will be delivered to the City Garage, City Service Center, 5352 Ayers Street, Corpus Christi, TX 78415. B.The location of business must be located within a range of the City Service Center to allow for delivery of tires as outlined below. C.The Contractor shall have five hours to deliver the tires if the order is placed before 11:00 am. D.The Contractor shall 24 hours to deliver the tires if the order is placed after 11:00 am. E.The Contractor shall deliver tires between the hours of 8:00am – 5:00pm. Monday through Friday. F.The Contractor shall provide bill of lading when tires are delivered. Page 1 of 1 CITY OF CORPUS CHRISTI CO NTRACTS AND PROCUREMENT DEPARTMENT BID FORM RFB No. 2362 Tires for Fleet Date: 7/26/2019 Bidder: T&W TIRE, LLC Authorized Signature: 1.Refer to "Instructions to Bidders" and Contract Terms and Co completing bid. 2.Quote your best price f r each item. 3.In submitting this bid, Bi der certifies that: Page 1 of 1 a.the prices in thi bid have been arrived at independently, withoutconsultation, co munication, or agreement with any other Bidder orcompetitor, for th purpose of restricting competition with regard to prices.b.Bidder is an Equtl Opportunity Employer, and the Disclosure of Interestinformation on file with City's Contracts and Procurement office, pursuantto the Code of Or inances, is current and true.c.Bidder is current Vvfith all taxes due and company is in good standing withall applicable gov�rnmental agencies.d.Bidder acknowledbes receipt and review of all addenda for this RFB. Item Description UNIT QTY Unit Price Total Price Group 1 1 11 R22.5 -Year l EA 350 275.00 96,250.00 2 11 R22.5-Year 2 EA 350 281.88 98,658.00 3 l l R22.5 -Year 3 I EA 350 288.92 101,122.00 Total 296,030.00 Revised Addendum 1 Attachment C: Insurance 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 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 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. Page 1 of 3 B.ADDITIONAL REQUIREMENTS 1.Applicable for paid employees, Contractor must obtain workers’ compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers’ compensation coverage provided must be in 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-B Contracts for General Services – Services Performed Onsite 04/26/2019 Risk Management – Legal Dept. Page 3 of 3 Attachment D: Warranty Requirements Limited warranty and adjustment policy is a promise of replacement under certain specified conditions. It applies to tires in normal highway service displaying adjustable conditions and does not require the existence of a deficiency in workmanship or materials in order to qualify for adjustment. This limited warranty is not a warranty that the tire will not fail or become unserviceable if neglected or mistreated. Replacement policy on tire is first 12 months or first 10% treadwear, whichever comes first. Page 1 of 1 Supply Agreement Standard Form Page 1 of 7 SUPPLY AGREEMENT NO. 2362 Tires for Fleet THIS Tires for Fleet Supply Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and Southern Tire Mart, LLC (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Tires for Fleet in response to Request for Bid No. 2362 (“RFB”), which RFB includes the required scope of work and all specifications and which RFB 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 Tires for Fleet 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 $158,202.00, subject to approved extensions and changes. Payment will be made for goods delivered and accepted by the City within 30 days of acceptance, subject to receipt of an acceptable invoice. 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: City of Corpus Christi Supply Agreement Standard Form Page 2 of 7 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: Erlinda Klubertanz General Service Department 361-826-1903 Erlinda@cctexas.com 5. Insurance (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 on General Liability and Auto Liability policies. The City Attorney must be given copies of all insurance policies within 10 days of the City Manager's written request, except that the Contractor is not required to provide the policy documents without a court order if it is a publicly-traded entity. 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 division. 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 re-worked immediately at no charge to the City. If prompt 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 reasonable costs over the item’s bid price, must be paid by the Contractor within 30 days of receipt of City’s invoice. Supply Agreement Standard Form Page 3 of 7 8. Warranty. (A) The Contractor warrants that all products supplied under this Agreement are new, quality items that are free from defects, and will receive the full benefit of the manufacturer’s applicable standard warranty for such products. 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 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 applicable 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: Erlinda Klubertanz Operations Manager 5352 Ayers, Bldg 3B, Corpus Christi, TX 78415 Phone: 361-826-1903 Fax: 361-826-4394 IF TO CONTRACTOR: Southern Tire Mart, LLC Attn: Richard Conwill Director of Government Sales 800 Highway 98, Columbia, MS 39429 Phone: 877-786-4681 Fax: 601-651-0655 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, REASONABLE ATTORNEYS’ FEES AND EXPERT WITNESS FEES, TO THE EXTENT THAT THEY ARISE OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT BY CONTRACTOR OR ITS EMPLOYEES, OR AGENTS, OR RESULTS FROM THE NEGLIGENT Supply Agreement Standard Form Page 5 of 7 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 REASONABLY SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL REASONABLE 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 either Party, or of any right or interest contained herein, is effective unless the other Party first gives written consent to such assignment except that the City may assign this Agreement to any other person or governmental entity that succeeds to the governmental powers and authority of the City without consent. 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 Supply Agreement Standard Form Page 6 of 7 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 applicable 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. CONTRACTOR~=-~~~~;;;;;;;;;;;;;;;;;;;::--- Signature :~---=----------------- Printed Name : Richard Conwill T itle : Director of Government Sales -------------------- Date : 10/17/2019 CITY OF CORPUS CHRISTI Kim Baker Director of Contracts and Procurement Date: _________ _ APPROVED AS TO LEGAL FORM: Assistant City Attorney 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 l: RFB No. 2362 Exhibit 2: Contractor's Bid Response Supply Agreement Standard Form Date Page 7 of 7 Attachment A: Scope of Work 1.1 Scope of Work A. The Contractor shall provide new tires on an as needed basis. B. The Contractor shall maintain stock in sufficient amount and sizes of tires to supply the reasonable demands of the City. C. Tires include: Group 2 - P265/60R17 Firehawk tires as outlined on Attachment B- Bid/Pricing Schedule 1.2 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. 1.3 Special Instructions A. Tires will be delivered to the City Garage, City Service Center, 5352 Ayers Street, Corpus Christi, TX 78415. B. The location of business must be located within a range of the City Service Center to allow for delivery of tires as outlined below. C. The Contractor shall have five hours to deliver the tires if the order is placed before 11:00 am. D. The Contractor shall 24 hours to deliver the tires if the order is placed after 11:00 am. E. The Contractor shall deliver tires between the hours of 8:00am – 5:00pm. Monday through Friday. F. The Contractor shall provide bill of lading when tires are delivered. CITY OF CORPUS CHRISTI CONTRACTS AND PROCUREMENT DEP ARTMENT Date: Bidder: Sout hern Tire Mart. LLC BID FORM RFB No. 2362 Tires for Fleet Authorized Signature: Page 1 of 1 1.Refer to "Instructions to Bidders" and Contract Terms and Conditions before completing bid. 2.Quote your best price for each Item. 3.In submitting this bid, Bidder certifies that:a.the prices in this bid have been arrived at independently, withoutconsultation, commun ication, or agreement with any other Bidder orcompetitor, for the purpose of restricting competition with regard to prices.b.Bidder is an Equal Opportunity Employer, and the Disclosure of Interestinformation on file with City's Contracts and Procurement office, pursuantto the Code of Ordinances, is current and true.c.Bidder is current with all taxes due and company is in good standing withall applicable governmental agencies.d.Bidder acknowledges receipt and review of all addenda for this RFB. P265/ 60R l 7 Fire hawk - e EA 423 $121.00 $51,183.00 2 P265/ 60R l 7 Fire hawk - Y EA 423 $125.00 $52,875.00 3 P265/60Rl 7 Firehawk-Ye#t)1318 EA 423 $128.00 $54,144.00 Total $158,202.00 Revised Addendum 1 Attachment C: Insurance 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 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 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. Page 1 of 3 B.ADDITIONAL REQUIREMENTS 1.Applicable for paid employees, Contractor must obtain workers’ compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers’ compensation coverage provided must be in 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-B Contracts for General Services – Services Performed Onsite 04/26/2019 Risk Management – Legal Dept. Page 3 of 3 Attachment D: Warranty Requirements Workmanship & Materials Warranty – Five years/Free replacement first three years, then prorated until 2/32” remaining depth. Supply Agreement Standard Form Page 1 of 7 SUPPLY AGREEMENT NO. 2505 Tires for Fleet THIS Tires for Fleet Supply Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation (“City”) and The Goodyear Tire & Rubber Company (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Tires for Fleet in response to Request for Bid No. 2362 (“RFB”), which RFB includes the required scope of work and all specifications and which RFB 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 Tires for Fleet 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 408,100.75, 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: City of Corpus Christi Supply Agreement Standard Form Page 2 of 7 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: Erlinda Klubertanz General Service Department 361-826-1903 Erlinda@cctexas.com 5.Insurance (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. 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 on Auto Liability policies. The City Attorney must be given copies of all insurance policies within 10 days of the City Manager's written request, except that the Contractor is not required to provide the policy documents without a court order if it is a publicly-traded entity. 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 division. 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 re-worked immediately at no charge to the City. If prompt 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 reasonable costs over the item’s bid price, must be paid by the Contractor within 30 days of receipt of City’s invoice. 8.Warranty. Supply Agreement Standard Form Page 3 of 7 (A) The Contractor warrants that all products supplied under this Agreement are new, quality items that are free from defects, and will receive the full benefit of the manufacturer’s applicable standard warranty for such products. 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 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 applicable 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: Erlinda Klubertanz Operations Manager 5352 Ayers, Bldg 3B, Corpus Christi, TX 78415 Phone: 361-826-1903 Fax: 361-826-4394 IF TO CONTRACTOR: The Goodyear Tire & Rubber Company Attn: Gerald F. Payne Director of Sales and Operations 200 Innovation Way, Akron, OH 44316-0001 Phone: 330-796-3782 Fax: 330-796-4276 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, REASONABLE ATTORNEYS’ FEES AND EXPERT WITNESS FEES, TO THE EXTENT THAT THEY ARISE OUT OF OR IN CONNECTION WITH A BREACH OF THIS AGREEMENT BY CONTRACTOR OR ITS EMPLOYEES, OR AGENTS, OR RESULTS FROM THE NEGLIGENT ACT, OMISSION, MISCONDUCT, OR FAULT OF THE CONTRACTOR OR ITS Supply Agreement Standard Form Page 5 of 7 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 REASONABLY SATISFACTORY TO THE CITY ATTORNEY, AND PAY ALL REASONABLE 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 either Party, or of any right or interest contained herein, is effective unless the other Party first gives written consent to such assignment except that the City may assign this Agreement to any other person or governmental entity that succeeds to the governmental powers and authority of the City without consent. 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 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 applicable 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 1.1 Scope of Work A.The Contractor shall provide new tires on an as needed basis. B.The Contractor shall maintain stock in sufficient amount and sizes of tires to supply the reasonable demands of the City. C.Tires include: 1.Group 3 - P235/55R17 Goodyear Eagle RSA as outlined on Attachment B-Bid/Pricing Schedule 2.Group 3 - P245/55R18 Goodyear Eagle RSA as outlined on Attachment B-Bid/Pricing Schedule 3.Group 3 - P205/60R16 Goodyear Eagle Sport as outlined on Attachment B-Bid/Pricing Schedule 4.Group 3 - 225/70R15 Goodyear WRL SRA as outlined on Attachment B- Bid/Pricing Schedule 5.Group 3 - 225/50R17 Goodyear Eagle Sport as outlined on Attachment B-Bid/Pricing Schedule 6.Group 3 - 225/70R19.5 Goodyear G622 RSD as outlined on Attachment B-Bid/Pricing Schedule 7.Group 3 - 225/70R19.5 Goodyear G647 RSS as outlined on Attachment B-Bid/Pricing Schedule 1.2 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. 1.3 Special Instructions A.Tires will be delivered to the City Garage, City Service Center, 5352 Ayers Street, Corpus Christi, TX 78415. B.The location of business must be located within a range of the City Service Center to allow for delivery of tires as outlined below. Page 1 of 2 C.The Contractor shall have five hours to deliver the tires if the order is placed before 11:00 am. D.The Contractor shall 24 hours to deliver the tires if the order is placed after 11:00 am. E.The Contractor shall deliver tires between the hours of 8:00am – 5:00pm. Monday through Friday. F.The Contractor shall provide bill of lading when tires are delivered. Page 2 of 2 I Grous,3 I l P235/55Rl 7 Goodyear Eagle EA I RSA Year l I 2 P235/55Rl 7 Goodyear Eagle EA I RSA Year2 3 I P235/55R 17 Goodyear Eagle RSA Year3 I EA II4 I P245/55R 18 Goodyear Eagle RSA I -Year l EA I I 5 I P245/55Rl8 Goodyear Eagle RSA f Year2 EA II6 I P245/55R 18 Goodyear Eagle RSA I -Year3 EA I I 7 I P205/ 60R 16 Goodyear Eagle EA I Sport Year 1 8 I P205/ 60R 16 GoodyearSport Year2 Eagle I EA I 9 P205/60Rl6 Goodyear Eagle EA Soort -Year 3 10 225/70R 15 Goodyear WRL SRA -EAYearl 11 225/70R 15 Goodyear WRL SRA -EAYear2 12 225/70R 15 Goodyear WRL SRA -EAYear3 13 225/ SOR 17 Goodyear Eagle EA Soort Year 1 14 225/SORl 7 Goodyear Eagle EA Sport Year2 15 225/ SOR 17 Goodyear Eagle EA Soort Year3 16 225/70R 19 .5 Goodyear G622 EA RSO Year 1 17 225/70R 19 .5 Goodyear G622 EA RSO Year2 225/70R 19 .5 Goodyear G622 EA 18 RSO Year3 19 225/70R19.5 GoodyearG647 RSS EAYear l 20 225/70R 19 .5 Goodyear G647 RSS EAYear2 21 225/70R 19 .5 Goodyear G647 RSS EAYear3 Total 150 $104.00 150 106.00 150 108.00 425 121.00 425 123.00 4 25 125.00 25 70.24 25 72.00 25 74.00 50 87.52 50 89.00 50 92.00 75 85.75 75 87.50 75 90.00 150 215.00 150 220.00 150 225.00 100 215.00 100 220.00 100 225.00 .-�3- t $15,600.00 15,900.00 16,200.00 I 51,425.00 52,275.00 I 53,125.00 I 1,756.00 I I 1.aoo.00 I 1,850.00 4,376.00 4,450.00 4,600.00 6,431.25 6,562.50 6,750.00 32,250.01 33,000.011 33,750.0C 21,500.00 22,000.00 22,500.00 -�498,�99,89, $408,100.75 Page 2 of 2 �� ,Y 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) 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 Auto Liability policies. 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 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 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 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: •List the City and its officers, officials, employees, volunteers, and elected representatives as additional insured, 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. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. Page 2 of 3 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-B Contracts for General Services – Services Performed Onsite 04/26/2019 Risk Management – Legal Dept. Page 3 of 3 Attachment D: Warranty Requirements Any new Goodyear highway radial auto or radial light truck tire, covered by this policy, removed from service due to a covered warranty condition during the first 2/32” of usable tread or 12 months from date of purchase, whichever comes first, will be replaced with a comparable new Goodyear tire at no charge, including mounting and balancing (without proof of purchase the date of manufacture will be used to determine eligibility). Page 1 of 1 DATE: November 12, 2019 TO: Peter Zanoni, City Manager FROM: Peter Collins, Interim Chief Officer of Information Technology PeterC@cctexas.com (361)-826-3735 Laura Garcia, Director of Libraries LauraGa@cctexas.com (361)-826-7070 Kim Baker, Director of Contracts and Procurement Kimb2@cctexas.com (361)-826-3169 CAPTION: Motion authorizing two purchases for a total amount of $180,293.42; one with Computer Solutions, of San Antonio, Texas in an amount of $121,793.42 for network equipment, and second with Dell EMC, of Round Rock, Texas in an amount of $58,500.00 for 60 All- in-One Desktop computers; to be used by the community of Corpus Christi at the public libraries and increase broadband capability, effective upon issuance of a purchase order, with funding available in CDBG Grants fund. SUMMARY: This motion authorizes a purchase with Computer Solutions in an amount of $121,793.42 for network equipment and Dell EMC in an amount of $58,500.00 for 60 All-in-One Desktop computers, for a total amount of $180,293.42, to be used by the community of Corpus Christi at our public libraries and increase broadband capability. BACKGROUND AND FINDINGS: On July 17, 2018, the Housing and Community Development (HCD) Department held a public hearing and 1st Reading Ordinance for the FY2018-2019 Consolidated Annual Action Plan (CAAP). HCD recommended Community Development Block Grant (CDBG) Upgrade Network and Computers at La Retama Central and McDonald Libraries AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 funding to the Library Department in the amount of $214,804 .00 to improve broadband capability at the Ben F. McDonald and La Retama Libraries. On July 24, 2018, the CAAP was approved with all funding recommendations. The U.S. Department of Housing and Urban Development has also approved this project. The FCC established broadband goals of 100 Mbps for smaller libraries and 1 Gbps for larger libraries, currently the Corpus Christi Public Libraries system shares 50 Mbps amongst its six locations. Upgrading the network switches and routers at La Retama Central and McDonald Library, with CDBG grant funds, will increase the bandwidth to 1 Gbps. To benefit from the increased bandwidth public use computers will also be upgraded. This project will also fund the installation of wireless access points at La Retama Central and McDonald Library. The McDonald Library is being transitioned into a Technology Learning Center to integrate new services and expand current services for the community. New services will consist of becoming a HiSet testing site. HiSet students earn a high school equivalency certification. The Corpus Christi Literacy Council (CCLC) is housed at the McDonald Library and library staff will be utilizing the CCLC lab to provide financial and digital literacy classes to the public. The procurement is through the DIR Cooperative. Contracts awarded through the DIR Cooperative have been competitively procu red and are in compliance with Texas Local and State procurement requirements. ALTERNATIVES: An alternative would be not to replace the equipment. However, the equipment currently at the library is old and has not been updated. Without the addition of new computers and network, the community will not have the ability to take advantage of services offered. FISCAL IMPACT: CDBG grant funds in the amount of $214,804.00 are being utilized for the project. This item uses $180,293.42 for the purchase of network equipment and desktop computers. The remaining grant funds will supply the wireless access points, cabling and network cabinets. Funding Detail: Fund: 1059 CDBG Grants Organization/Activity: 851903F McDonald Library Broadband Mission Element: 131 Admin Neighborhood & Housing Grants Project # (CIP Only): N/A Account: 530000 Professional Services RECOMMENDATION: Staff recommends approval of this motion authorizing the purchase of network equipment with Computer Solutions and 60 All-in-One Desktop computers with Dell. LIST OF SUPPORTING DOCUMENTS: Price Sheet City of Corpus Christi Price Sheet Contracts and Procurement Department Library Project-IT Sr. Buyer: Minerva Alvarado DIR-TSO-4167 DIR-TSO-3763 Item Description Quantity Price Extended Total 1 Cisco FirePOWER 2120 1 5,998.50$ 5,998.50$ 2 Cisco SMARTnet 3 1,248.00$ 3,744.00$ 3 Cisco Threat Defense Malware 1 9,545.25$ 9,545.25$ 4 Cisco Catalyst 9300 2 2,642.45$ 5,284.90$ 5 Cisco SMARTnet 6 316.49$ 1,898.94$ 6 Cisco ONE Advantage 2 1,172.60$ 2,345.20$ 7 Cisco Config 1 Secondary Power Supply 7 779.00$ 5,453.00$ 8 Cisco Catalyst 9300 Network Module 8 1,045.50$ 8,364.00$ 9 Cisco Catalyst 9300 8 4,530.50$ 36,244.00$ 10 Cisco SMARTnet 24 542.89$ 13,029.36$ 11 Cisco ONE Advantage 8 1,894.20$ 15,153.60$ 12 Cisco StackWise 480 5 41.00$ 205.00$ 13 Cisco StackPower 5 38.95$ 194.75$ 14 Cisco StackWise 480 1 82.00$ 82.00$ 15 Cisco StackPower 1 41.00$ 41.00$ 16 Cisco VG310 Voice Gateway 1 2,529.70$ 2,529.70$ 17 Cisco SMARTnet 3 370.50$ 1,111.50$ 18 Cisco IOS Data License 1 410.00$ 410.00$ 19 Cisco SFP+ Transceiver Module 8 820.00$ 6,560.00$ 20 Cisco SFP+ Copper Twinax Cable 2 41.00$ 82.00$ 21 Cisco SFP+ Transceiver Module 4 287.00$ 1,148.00$ 22 Cisco SFP transceiver module 2 184.50$ 369.00$ 23 APC Smart-UPS x 3000 Rack/Tower 1 1,870.04$ 1,870.04$ 24 APC Basic Rack-Mount PDU 1 129.68$ 129.68$ 121,793.42$ Item Description Quantity Price Extended Total 1 OptPlex 7460 AIO 60 975.00$ 58,500.00$ 58,500.00$ Computer Solutions Dell EMC DATE:October 24, 2019 TO:Peter Zanoni, City Manager FROM:Dan Grimsbo, Executive Director of Utilities DanG@cctexas.com (361) 826-1718 CAPTION: Motion authorizing a Joint Funding Agreement with the United States Geological Survey (USGS), U.S. Department of the Interior,for USGS to maintain automated river gauging stations that record stream flows and water quality parameters associated with the Frio and Nueces Rivers and associated tributaries, which is data the City uses daily to manage releases from the City’s reservoir system and for water treatment operations, whereby the USGS contributes $28,950.00 and the City contributes $166,350.00. SUMMARY: The motion authorizes the City to contribute $166,350.00 to maintain automated river gauging stations along the Frio River, Nueces River, and associated tributaries, which the City uses to record stream flows and water quality information as well as to manage daily inflows and releases from the City’s reservoir system. Knowledge of the incoming raw water quality allows the City’s Water Treatment Plant Operators to optimize the treatment process, and knowledge of the inflows to Lake Corpus Christi and Choke Canyon Reservoir allows the City’s Dam Operators to adjust the downstream releases to protect public safety, maintain as much water as possible in the reservoirs, and protect the integrity of the dams. BACKGROUND AND FINDINGS: The City utilizes the USGS automated river gauging stations to record all inflows and releases in the reservoir system to properly manage the diversion of raw water and health of the reservoir system, in addition to water quality monitoring. To better manage the treatment of water at O. N. Stevens Water Treatment plant, the gathering of real-time water quality data from the Nueces River prior to the intake pumps is critical. Streamflow gauges are the primary system used by the City’s Dam Operations teams at Choke Canyon Reservoir and Lake Corpus Christi to track water levels in and out of the City’s reservoirs, which gives the operators essential data to maintain reservoir levels, ensure Dam safety, and also provides a means of early flood warning to protect public safety. Joint Funding Agreement with the United States Geological Survey (USGS) for Automated River Gauging Station Monitoring AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 The contract period is October 1, 2019 through September 30, 2020. ALTERNATIVES: An alternative to not participate would eliminate the City’s knowledge of the inflows and outflows of the reservoir system to best maintain the reservoir levels and the City would not know how to plan for raw water diversions and flood mitigation. Knowledge of the incoming raw water quality allows the City’s Water Treatment Plant Operators to optimize the treatment process, and knowledge of the inflows to Lake Corpus Christi and Choke Canyon Reservoir allows the City’s Dam Operators to adjust the downstream releases to protect public safety, maintain as much water as possible in the reservoirs, and protect the integrity of the dams. FISCAL IMPACT: The motion authorizes the City to contribute $166,350.00 to USGS to maintain automated river gauging stations along the Frio and Nueces Rivers and associated tributaries, which the City uses to record stream flows and water quality information as well as to manage daily inflows and releases from the City’s reservoir system. Funding Detail: Fund:4010 Organization/Activity: 30200 Water Wesley Seale Dam, 30210 Choke Canyon Dam Mission Element:061 Project # (CIP Only): Account:530000 Professional Services RECOMMENDATION: Staff recommends approval of the Joint Funding Agreement with the USGS with a City contribution of $166,350.00. LIST OF SUPPORTING DOCUMENTS: Joint-funding agreement Project No: E15112 1 MA/CFA Legistar No.: 19- 1438 Rev. 2 – 10/31/19 AGENDA MEMORANDUM Action Item for the City Council Meeting of November 12, 2019 ____________________________________________________________________________ DATE:October 11, 2019 TO:Peter Zanoni, City Manager THRU:Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3082 FROM:Daniel McGinn, AICP, Director of Planning/ESI danielmc@cctexas.com 361-826-7011 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 execution of Interlocal Cooperation Agreement with Del Mar College for improvements associated with Del Mar College’s new campus located at Yorktown Boulevard and Rodd Field Road in District 5 including a new pedestrian/bicycle bridge and trail, designated turn lanes and driveway cuts, and enhanced landscaping with irrigation. SUMMARY: This Interlocal Cooperation Agreement (ILA) identifies responsibilities and cost sharing between the City of Corpus Christi and Del Mar College for improvements associated with new Del Mar College campus development. BACKGROUND AND FINDINGS: Del Mar College is under construction for the first of three phases for the new campus at the northwest corner of Yorktown Boulevard and Rodd Field Road. Phase 1 will support up to 6,000 students. The ultimate build out of all three phases will support up to 18,000 students. As part of the development, Del Mar College requested changes to the City’s master plans and City street network. In 2017, City Council approved amending the Urban Transportation Plan to close Bronx Road with the requirement for Del Mar College to remain in compliance with Mobility Interlocal Cooperation Agreement with Del Mar College Project No: E15112 2 MA/CFA Legistar No.: 19- 1438 Rev. 2 – 10/31/19 CC, specifically, Phase 1: Bicycle Mobility Plan by dedicating a right-of-way easement and constructing a 10 foot-wide concrete trail from Yorktown Blvd to Master Channel 31 Ditch and a pedestrian bridge over the Master Channel 31 Ditch. Del Mar College requested joint participation with the City that was mutually developed into this Interlocal Agreement. The following outlines the improvements within the ILA and identifies shared roles and responsibilities: 1. Closure of Bronx Drive to vehicular travel and construction of a new pedestrian/bicycle bridge and concrete trail that connects to Yorktown Blvd which will provide additional access to Del Mar College. A. Del Mar College will fund and administer the design and construction of the new bridge and trail before completion of Phase 1 of Del Mar College’s new campus. B. If Del Mar College does not complete within the allotted time, the City will design and construct the new bridge and trail. The additional costs incurred will be 100% reimbursed by Del Mar College. C. Because the City will be responsible for the maintenance of the bridge and trail, the City will pursue low maintenance materials and construction. The maintenance will be funded through the Stormwater Fund. City estimates annual maintenance costs at approximately $500.00 per year. At five-year intervals, the City estimates maintenance costs to be approximately $5,000.00 to address major maintenance and repairs to the bridge. 2. Designated turn lanes and driveway cuts for east and west bound traffic on Yorktown Blvd for entry to the new campus. A. The City will award and administer the design and construction contracts which will be 100% reimbursed by Del Mar College. 3. Enhanced landscaping, with irrigation, for the Yorktown median along the Del Mar College property limits from approximately the Rodd Field intersection to the western property line and Rodd Field median from Yorktown to Presidents Way. A. The City will award and administer the design and construction contracts which will be 100% reimbursed by Del Mar College. B. Del Mar will pay for the water used, maintain the landscaping, and maintain the irrigation system. Upon approval of this Interlocal Agreement, Del Mar College will submit a Plat for approval to Development Services. ALTERNATIVES: This agreement is critical to properly coordinate and ensure cost sharing for improvements at the new Del Mar College Campus and the associated City improvements prior to the Plat approval. FISCAL IMPACT: The fiscal impacts are as follows: Project No: E15112 3 MA/CFA Legistar No.: 19- 1438 Rev. 2 – 10/31/19 City estimates annual maintenance costs at approximately $500.00 per year. At five-year intervals, the City estimates maintenance costs to be approximately $5,000.00 to address major maintenance and repairs to bridge. This ILA allows the City to be reimbursed for all improvements requested by Del Mar College to improve their future campus and meet platting requirements. The City will be responsible for maintaining the pedestrian bridge. During the design phase, the City will be reviewing to ensure that the construction and materials are low maintenance. Del Mar has agreed to maintain the landscaping and irrigation system. RECOMMENDATION: Engineering Services, Streets Department, Development Services, Planning and Legal have reviewed and approved the ILA and recommend approval. Phase 1 is planned for construction completion in Fall of 2021. LIST OF SUPPORTING DOCUMENTS: Resolution Location Map Interlocal Cooperation Agreement Resolution authorizing execution of Interlocal Cooperation Agreement with Del Mar College for improvements associated with Del Mar College’s new campus located at Yorktown Boulevard and Rodd Field Road in District 5 including a new pedestrian/bicycle bridge and trail, designated turn lanes and driveway cuts, and enhanced landscaping with irrigation. WHEREAS, this Interlocal Cooperation Agreement (ILA) pertains to medians on Yorktown Boulevard and Rodd Field Road, turn lanes on Yorktown Boulevard and a pedestrian/bicycle bridge and trail over Master Channel 31 to Yorktown Boulevard. Be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. That the City Manager or designee is authorized to execute an Interlocal Cooperation Agreement with Del Mar College for the development of Del Mar College’s new campus located at Yorktown Boulevard and Rodd Field Road in District 5. SECTION 2. That the City Manager or designee is authorized to administratively renew the agreement and make minor amendments to the agreement. SECTION 2. This Resolution shall take effect and be in full force immediately after its adoption by the City Council. 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 Traffic Impact Analysis (TIA) – June 2017 36 DEL MAR COLLEGE SOUTHSIDE CAMPUS Exhibit 17b – Recommended Transportation Improvements Scenario 1: (without Bronx Drive) Phase 2: (2025) Impact Bicycle Mobility Network 10 Bronx Avenue Del Mar College will Dedicate easement and construct a pedestrian and bike path that will have a bridge across the ditch. DATE:September 26, 2019 TO:Peter Zanoni, City Manager FROM:Alma Casas, Interim Director of Finance and Business Analysis AlmaC@cctexas.com (361) 826-3610 CAPTION: Resolution amending and reaffirming the City of Corpus Christi’s Investment Policy and Investment Strategies for Fiscal Year 2019-2020. SUMMARY: The Public Funds Investment Act requires annual review by the governing body of its Investment Policy and adoption of a written instrument stating that it has reviewed the investment policy and investment strategies. BACKGROUND AND FINDINGS: Under Texas Government Code, Chapter 2256, Subchapter A. Authorized Investments for Governmental Entities, the State of Texas delineates the types of investments and the investment rules that must be followed by governmental entities. This chapter is often referred to as the “Public Funds Investment Act”. In accordance with the Public Funds Investment Act, the governing body must approve the City’s investment policy annually. Last year, City Council approved the City’s Investment Policy and Investment Strategies on December 4, 2018. On January 31, 2019, the Government Treasurers’ Organization of Texas (GTOT) awarded the City of Corpus Christi a Certificate of Distinction for its Investment Policy and Investment Strategies. This is the first time the City has applied for or been awarded this distinction. Style and formatting changes, along with substantive amendments, are being made to the previous fiscal year’s 2018-2019 Investment Policy and Investment Strategies document, with such changes and amendments delineated and described below: Approval of the City’s Investment Policy and Investment Strategies AGENDA MEMORANDUM Action Item for the City Council Meeting November 12, 2019 (a) Deletion of the Assistant City Managers and City Attorney as Investment Committee members; addition of the Chief Financial Officer and Assistant Director of Finance and Business Analysis. (b) Revisions made, where necessary, to recognize the newly renamed Finance and Business Analysis Department. (c) Addition of the Chief Financial Officer as an Investment Officer. The City’s Investment Committee met on September 11, 2019 and approved the revisions to the Investment Policy. The City’s investment advisor has also reviewed and approved the revisions. ALTERNATIVES: The change of the name from the Financial Services Department to the Finance and Business Analysis Department warranted some revisions. The changes to the Investment Committee members place the subject matter experts as voting members of the committee overseeing the investment decisions. FISCAL IMPACT: There is no fiscal impact. RECOMMENDATION: Staff recommends approval of the resolution amending and reaffirming the City of Corpus Christi’s Investment Policy and Investment Strategies for Fiscal Year 2019-2020 as presented. LIST OF SUPPORTING DOCUMENTS: City of Corpus Christi Investment Policy and Investment Strategies Resolution Resolution amending and reaffirming the City of Corpus Christi’s Investment Policy and Investment Strategies for fiscal year 2019-2020. WHEREAS, the City of Corpus Christi’s Investment Policy and Investment Strategies were first adopted pursuant to Resolution No. 022390 on October 24, 1995; WHEREAS, the Texas Public Funds Investment Act requires the governing body to annually review, amend as necessary, and reaffirm its investment policy and investment strategies; WHEREAS, the Investment Policy and Investment Strategies were previously re-viewed for fiscal year 2018-19 on November 15, 2018, and reaffirmed pursuant to Resolution No. 031611 on December 4, 2018; and WHEREAS, the Investment Policy and Investment Strategies were reviewed for fiscal year 2019-2020 by the Investment Committee on September 11, 2019; recommended by the committee for approval with style and formatting changes, substantive amendments, and an updated issuance date; and are being recommended for reaffirmation by the City Council. Therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: Section 1. The City Council has reviewed the City of Corpus Christi’s Investment Policy and Investment Strategies for fiscal year 2019-2020. A copy of the Investment Policy, which contains the separate Investment Strategies, for fiscal year 2019-2020 is attached to this resolution as Exhibit A and incorporated by reference into this resolution as if set out here in its entirety. Section 2. Style and formatting changes, along with substantive amendments, are being made to the previous fiscal year’s 2018-2019 Investment Policy and Investment Strategies document, with such changes and amendments delineated and described below: (a) Deletion of the Assistant City Managers and City Attorney as Investment Committee members; addition of the Chief Financial Officer and Assistant Director of Finance and Business Analysis. (b) Revisions made, where necessary, to recognize the newly renamed Finance and Business Analysis Department. (c) Addition of the Chief Financial Officer as an Investment Officer. Section 3. With an updated issuance date that coincides with the date this resolution is passed, the City Council approves the City of Corpus Christi’s Investment Policy and Investment Strategies for fiscal year 2019-2020 and reaffirms the continuation of the policy and strategies in full force and effect. PASSED AND APPROVED on the ______ day of _________, 2019: Joe McComb _________________ Roland Barrera _________________ Rudy Garza _________________ Page 2 of 2 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             City of Corpus Christi    Investment Policy and  Investment Strategies  Adopted  November 12, 2019 i  TABLE OF CONTENTS I. POLICY STATEMENT .............................................................................. 1  II. SCOPE .................................................................................................. 1  III. PRUDENCE .......................................................................................... 2  IV. OBJECTIVES ........................................................................................ 2  V. LEGAL LIMITATIONS AND AUTHORITIES.............................................. 3  VI. DELEGATION OF AUTHORITY AND RESPONSIBILITY ........................... 3  VII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS ..... 5  VIII. AUTHORIZED INVESTMENTS ............................................................ 5  IX. COLLATERALIZATION .......................................................................... 7  X. SAFEKEEPING ....................................................................................... 8  XI. INTERNAL CONTROLS ......................................................................... 8  XII. REPORTING ........................................................................................ 9  XIII. DEPOSITORIES ................................................................................ 10  XIV. AUDITS AND COMPLIANCE WITH LAWS ......................................... 10  XV. INVESTMENT POLICY ADOPTION .................................................... 11  XVI. INVESTMENT STRATEGIES .............................................................. 12  APPENDIX  A. RESOLUTION ...................................................................................... 14  1  CITY OF CORPUS CHRISTI  INVESTMENT POLICY AND INVESTMENT STRATEGIES  Adopted November 12, 2019      This Investment Policy (“Policy”) sets forth the specific policies and guidelines and general  strategy for the investment of funds of the City of Corpus Christi ("City") in order to achieve  the City's goals of safety, liquidity, diversification, and yield and to preserve the public trust.  This Policy satisfies the statutory requirements of the Public Funds Investment Act, Texas  Government Code, Chapter 2256 ("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 City that the administration of its fun ds 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 City and conforming to all federal, State  and local laws, rules and regulations governing the investment of public funds.    The receipt of a reasonable yield is secondary to the requirements for safety and liquidity.  Earnings from investment will be used in a manner that best serves the interests of the City.      II. SCOPE    This Policy governs the investment of all funds of the City as reported in the CAFR, except for  the following:    A. Employee’s Retirement Fund, and  B. Fireman’s Retirement System.    With respect to the funds of non‐profit corporations that are established by City Council  resolution and act on behalf of the City in accordance with State law, this Policy shall prevail in  the absence of a specific investment policy adopted by the non‐profit corporation. In addition  to this Policy, the investment of bond proceeds and other bond funds (including debt and  reserve funds) of the City or of a non‐profit corporation established by the City and acting on  behalf of the City in accordance with State law shall be governed and controlled by their  creating  ordinance,  resolution  or  trust  indenture,  including  the  authorization  of  eligible  investments,  and  by  the  provisions  of  the  Internal  Revenue  Code  of  1986,  as  amended,  including all regulations and rulings promulgated thereunder applicable to the issuance of tax‐ exempt obligations.  2  All funds in the investment portfolio (“Portfolio”) of the City are managed as a pooled fund  group, referenced in this Policy as the City’s Pooled Fund, except the following, which are  managed as separately invested assets:    A. Texas Utility System Junior Lien Revenue Improvement Bonds Escrow;  B. Airport Passenger Facility Charges (PFC); and  C. Law Enforcement Seized Assets.      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 prevailing circumstances,  that  a  person  of  prudence,  discretion,  and  intelligence  would  exercise  in  the  management  of  the  person’s  own  affairs,  not  for  speculation,  but  for  investment,  considering the probable safety of capital and the probable income to be derived.      IV. OBJECTIVES    All funds shall be managed and invested with four primary objectives, in order of their priority:    A. Safety   The preservation and safety of principal is the City’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  City 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. 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 City.    D. Diversification  The City will diversify its investments by maturity and market sector in an effort to avoid  3  incurring unreasonable and avoidable market risks.      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 the Act, this Policy, and any applicable  financial indentures or trust requirements.        VI. DELEGATION OF AUTHORITY AND RESPONSIBILITY    All participants in the investment process shall seek to act responsibly as custodians of the  public trust.     A. City Council  The City Council has ultimate fiduciary responsibility for all funds. The City Council is  responsible for reviewing and adopting the Policy on no less than an annual basis. The City  Council shall receive and review quarterly investment reports, approved by the Investment  Committee, from the Investment Officers.    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  consist of the City Manager, Chief Financial Officer, Director of Finance & Business Analysis,  Assistant Director of Finance & Business Analysis, and Director of Management and Budget.  The  Investment  Committee  shall  include  in  its  deliberation  such  topics  as:  economic  outlook, diversification, maturity structure, risk, and performance of the portfolio. At least  annually, the Investment Committee shall review, revise, and adopt a list of qualified  brokers  that  are  authorized  to  engage  in  investment  transactions with the City. The  Investment  Committee  shall  be  responsible  for  monitoring,  reviewing,  and  making  recommendations regarding the Policy to the City Council. The Investment Committee will  review quarterly investment reports before submission to the City Council.     C. Investment Officers  Investment Officers are designated by City Council resolution until such designation is  rescinded. The authority to invest City funds and the execution of any documentation  necessary is granted to the Investment Officers consisting of the Chief Financial Officer,  Director of Finance & Business Analysis, Assistant Director of Finance & Business Analysis,  City Treasurer and Investment Analyst. The Investment Officers are responsible for the  daily operation of the investment program; shall comply with this Policy, the Act, and all  applicable federal, State, and City laws, rules, and regulations; and will provide complete  reports to the Investment Committee on a quarterly basis. The Investment Officers will  4  retain all documentation on investment transactions.    Each Investment Officer shall attend at least 10 hours of training within 12 months after  taking office or designation as an Investment Officer and eight hours of investment training  in each succeeding two‐year fiscal period. Training must be received from an independent  source  approved  by  the  City’s  Investment  Committee  and  must  include  education  in  investment  controls,  security  risks,  strategy  risks,  market  risks,  diversification  of  the  investment portfolio and compliance with the Act.    The Investment Officers will avoid any transaction that might impair public confidence in  the City. The Investment Officers may not engage in an investment transaction except as  provided  under  the  terms  of  this  Policy.  In  order  to  ensure  quality  and  capability  of  investment management, the Investment  Officers  shall  possess  sufficient  working  knowledge of economics and securities markets, as well as the experience and judgment  necessary to carry out the responsibilities outlined in this Policy.    D. Investment Advisor  The City Council may contract with an investment management firm registered under the  Investment  Advisers  Act  of  1940 (15  U.S.C.  Section  80b‐1  et  seq.)  or  with  the  State  Securities Board to provide for the investment and management of its public funds or other  funds under its control. A contract made under authority of this subsection may not be for  a term longer than two years. A renewal or extension of the contract must be made by the  City Council by ordinance or resolution.    E. Ethics and Conflicts of Interest  Investment Officers shall comply with the City’s Code of Ethics  which requires disclosure of  financial  interests  each  year.  Investment  Officers  shall  refrain  from  personal  business  activities that could conflict with proper execution of the investment program or which  could impair the ability to make impartial investment decisions. Investment Officers shall  disclose to the City Council any material investment decisions and financial interests in  institutions that conduct investment or banking transactions with the City.    Investment Officers must file a disclosure statement with the T exas Ethics Commission and  City Council if:  1. The  Investment  Officer  has  a  personal  business  relationship  with  a  business  organization offering to engage in an investment transaction with the City (as  defined in 2256.005 (i)(1‐3)); or  2. The  Investment  Officer  is  related  within  the  second  degree  by  affinity  or  consanguinity, as determined under Chapter 573 of the Texas Government Code,  to an individual seeking to transact investment business with the City.        5  VII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS    All investment transactions shall be made through the financial institutions or broker/dealers  approved by the Investment Committee. No investment transactions may be entered into with  a brokerage subsidiary of the City’s safekeeping bank in order to perfect delivery versus  payment (DVP) requirements for trade independence.    Th Investment Officers will provide each authorized financial institution and broker/dealer a  copy of this Policy to ensure that they are familiar with the goals and objectives of the City as  required by the Act.     Investments shall only be made with those financial institutions or broker/dealers (including  money market mutual funds and local government investment pools) which have provided the  City  with  a  written  certification  executed  by  a  qualified  representative  of  the  firm  acknowledging that the business organization has:    A. Received, and thoroughly reviewed the Policy; and  B. Implemented reasonable controls and procedures in an effort to preclude investment  transactions not authorized by the Policy, except to the extent that this authorization is  dependent on an analysis of the makeup of the City’s Portfolio or requires an interpretation  of subjective investment standards.    The Investment Officers will request the Investment Committee authorize the deletion of  financial institutions or broker/dealers for:    A. Slow response time;  B. Inability to compete with other authorized firms;  C. Insufficient market information on technical or fundamental expectations based on  economic indicators;  D. Failed transactions or continuing operations difficulties; or  E. Unwillingness to abide by this 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 securit ies are approved for investment  of public funds by State statute, they will not be eligible for investment by the City until this  Policy has been amended and the amended version adopted by the City Council. The City  is not required to liquidate investments that were authorized investments at the time of  purchase (2256.017).  1. Obligations of the U.S. Government, its agencies and instrumentalities, excluding  6  mortgage  backed  securities,  with  a  maximum  stated  maturity  of  three  years  [2256.009(a)(1)].  2. Fully  Federal  Deposit  Insurance  Corporation  (FDIC)  insured  or  collateralized  depository certificates of deposit of a depository institution that has its main office  or a branch office 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 through a primary government  securities dealer, as defined by the Federal Reserve, or a financial institution doing  business in this State.  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  net  asset  value  and  specifically approved  for  participation by a resolution of the City Council (2256.016).  5. AAA‐rated, SEC registered no‐load money market mutual funds which strive to  maintain a $1 net asset value [2256.014(a)].  6. Fully FDIC insured or collateralized interest‐bearing depository accounts of banks in  Texas [2256.009(a)(7)].  7. General debt obligations of any U.S. state rated no less than A by a nationally  recognized rating agency and with a maximum stated maturity of two  years  [2256.009(a)(5)].  8. FDIC insured brokered certificate of deposit securities from a bank in any U.S. state,  DVP to the City’s safekeeping agent, not to exceed two years 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 [2256.010(b)].  9. A1/P1 rated commercial paper with a maximum maturity of 180 days (2256.013).  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  It is the policy of the City to require competitive bidding for all security purchases and sales,  except for:  1. Transactions with money market mutual funds and local government investment  pools;  2. Treasury and agency securities purchased at issue;  3. Automatic overnight “sweep” transactions with the city depository;   4. Fully insured certificate of deposit placed in accordance with the Act [2256.010 (b)];  5. Repurchase agreements; and  6. Guaranteed investment contracts.  7  At least three bids or offers must be solicited for all other transactions involving individual  securities. In situations where the exact security is not offered by other dealers, offers on  the closest comparable investment may be used to establish a fair market price for the  security. Bids for certificates of deposit may be solicited in any manner permitted by the  Act.    C. DVP Requirement  All  transactions,  excluding  local  government  investment  pool  and  mutual  fund  transactions, shall be conducted on a DVP basis.      IX. COLLATERALIZATION    The  City  requires  that  all  uninsured collected balances plus accrued  interest,  if  any,  in  depository  accounts  be  secured  in  accordance  with  the  requirements  of  the  Depository  Services Agreement, this Policy, the Public Funds Collateral Act (Texas Government Code,  Chapter 2257), and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.    A. Time and Demand Deposit Pledged Collateral  Consistent with State law, the City requires all bank time and demand deposits to be  federally  insured  and  collateralized  above  federal  insurance  coverage  with  eligible  securities. Depository collateral is pledged to and not owned by the City.     All collateral shall be held by an independent third‐party custodian approved by the City  under  an  executed  collateral  agreement  with  the  pledging  bank. The  custodian  shall  provide a monthly report of the collateral. The value of pledged securities must be at least  102% of deposits including accrued interest.     Eligible collateral securities shall only include:  1. Obligations of the U.S. Government, its agencies and instrumentalities, including  mortgage backed securities and collateralized mortgage obligations passing the  Federal Reserve bank test,  2. Municipal debt obligations rated not less than A by a nationally recognized rating  agency, or  3. Letters of credit issued to the City by the Federal Home Loan Bank.    The City’s Investment Officers reserve the right to accept or r eject any form of collateral or  enhancement at their sole discretion.    Collateralization often requires substitution. The substituted collateral’s market value will  be calculated and, if its market value is equal to or greater than the required collateral  value, the substitution is allowed. Substitutions should be limited to minimize the City’s  transactional recording requirements.  8  Should the collateral’s market value exceed the required amount, the pledging Institution  may request approval from an Investment Officer to reduce collateral. Collateral reductions  may be permitted only if the City’s records indicate that the total collateral market value  exceeds the required amount.    B. Repurchase Agreements Owned Collateral  Collateral under a repurchase agreement is owned by the City (2256.011). It will be held by  an independent third‐party safekeeping institution approved by the City 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 third‐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 U.S. Government, its agencies and instrumentalities including  mortgage‐backed securities and CMO which pass the bank test; or  3. Debt obligations of any U.S. state or U.S. state sub‐division rated A or better by at  least one nationally recognized rating agency.      X. SAFEKEEPING    The  City  shall  maintain  safekeeping  with  its  banking  institution or other banks for the  safekeeping of City‐owned securities (including those owned under a repurchase agreement  or guaranteed investment contract).  All collateral must be held in the City’s name and must  be so reflected on the safekeeping receipts. All security transactions shall be settled on a DVP  basis by the safekeeping institution (2256.005).     Securities shall not be held in any brokerage account.  Securities shall not be bought from the  City’s depository bank in order to provide perfected DVP.    The safekeeping institution shall be required to issue safekeeping receipts listing each specific  security, rate, description, maturity, Committee on Uniform Security Identification Procedures  (CUSIP) number, 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 shall be designed to prevent loss of funds  due  to  fraud,  employee  error,  misrepresentation  by  third  parties,  unanticipated  market  9  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. In conjunction with the annual financial audit, a compliance  audit of management controls on investments and adherence to this Policy shall be performed.     A. Cash Flow Forecasting  Cash flow analysis and forecasting is designed to protect and sustain  cash  flow  requirements of the City.  Executive management of the City 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 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. An investment that requires a  minimum rating under the Act does not qualify as an authorized investment during the  period the investment does not have the minimum rating. The City shall take all prudent  measures that are consistent with this Policy to liquidate an investment that does not have  the minimum rating. If any security falls below the minimum rating required by Policy or  law, the Investment Officers shall notify the Committee 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 certificates of deposit owned by the City based  upon information from the FDIC. If any bank has been acquired or merged with another  bank in which brokered certificates of deposit are owned by the City, the Investment  Officers shall immediately liquidate any brokered certificate of deposit which places the  City above the FDIC insurance level.      XII. REPORTING    In accordance with the Act (2256.023), not less than quarterly, the Investment Officers shall  prepare  and  submit  to  the  Investment  Committee  and  City  Council  a  written  report  of  investment transactions for all funds covered by the Act and this Policy for the preceding  reporting period within a reasonable time after the end of the period. The report must:    A. Describe in detail the investment position of the portfolio on the date of the report;  B. Be prepared jointly by all Investment Officers of the City;  C. Be signed by each Investment Officer of the City;  D. Contain a summary statement of each pooled fund group that states the:  10  1. Beginning market value for the reporting period;  2. Ending market value for the period; and  3. Fully accrued interest for the reporting period;  E. State the book value and market value of each separately invested asset at the end of  the reporting period by the type of asset and fund type invested;  F. State the maturity date of each separately invested asset that has a maturity date;  G. State the account or fund or pooled group fund in City for which each individual  investment was acquired; and  H. State the compliance of the investment portfolio of the City as it relates to:  1. The investment strategy expressed in this Policy; and  2. Relevant provisions of Section 2256.023 of the Act.    The quarterly reports prepared by the Investment Officers shall be formally reviewed at least  annually by an independent auditor, and the result of the review shall be reported to City  Council by that auditor.    In addition to quarterly reports, the Investment Officers will submit to the Director of Financial  Services the following reports on a monthly basis:    A. Cash position by bank account;  B. Collateral position; and  C. Investment transaction.    Market prices for market value calculations shall be obtained from nationally recognized  securities  databases  including  those  provided  by  the  City’s  depository  bank  through  its  safekeeping services and Bloomberg Professional Services.      XIII. DEPOSITORIES    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. AUDITS AND COMPLIANCE WITH LAWS    Each banking institution agrees to comply with all federal, State, and local laws, rules, and  regulations. The personnel or officers of such institution shal l be fully qualified and authorized  under federal, State, and local law to perform the services set out under this Policy. Each  institution  shall  permit the  Investment  Officers  to  audit,  examine,  and  make  excerpts  or  transcripts from such records of all contracts, invoices, materials, and other data relating to  applicable investments.  11  XV. INVESTMENT POLICY ADOPTION    The City Council shall review and adopt by resolution its Investment Policy and Investment  Strategies not less than annually, and the approving resolution shall designate any changes  made to the Policy and Strategies.                                  <This space is intentionally left blank.>     12  XVI. INVESTMENT STRATEGIES    The City’s Investment Portfolio (“Portfolio”) will be designed and managed based on projected  cash flows to provide for all anticipated and projected cash needs for each fund.  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 executive management of the  City will be incorporated into investment decisions. The overall investment program shall be  designed  and  managed  with  a  degree  of  professionalism  worthy  of public trust.  The  investment strategy for funds established after the annual Policy adoption will be managed in  accordance with the terms of this Policy and applicable agreements until a specific strategy is  reviewed and adopted.  A. Pooled Fund Strategy  The City’s Pooled Fund is an aggregation of City funds which include tax receipts, enterprise  revenue, fine and fee revenues, as well as, bond proceeds, grants, gifts, and endowments.  The City’s Pooled Fund may include funds from various Corporations associated with the  City which receive income distributions from their pro‐rata share of the full fund group.  The  City’s  Pooled  Fund  is  maintained  to  meet  anticipated  daily cash  needs  for  City  operations, capital projects, and debt service payments. The objectives of this fund are to:  1. Ensure safety of principal by investing only in high‐credit 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;  3. Limit market and credit risk through diversification; and  4. Attain a market yield commensurate with the objectives and restrictions set forth  in this Policy.    The City’s Pooled Fund shall have a maximum dollar‐weighted average maturity (WAM) of  one year (365 days) designed to meet anticipated cash flow needs. The fund shall be  laddered based on cash flow analysis to provide ongoing liquidity for anticipated needs and  provide for reasonable extension.    A minimum of 15% of the City’s Pooled Fund shall be held in cash or cash equivalents for  liquidity and no more than 40% may be invested longer than one year. Changes in City cash  flows  may  change  percentage  representations  over  time.  Unless  approved  by  the  Investment Committee, the target percentages  specified  shall  not  be  exceeded  for  a  temporary period greater than thirty (30) days without the Investment Officers taking  corrective action.    The risks in the City’s Pooled Fund shall be measured quarterly against a risk benchmark  designed  to  mirror  the  authorized  market  investments  and  the  City's  cash  flow  requirements.  Because this fund 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  13  maximum WAM of one year, the risk benchmark is established as the one‐year Treasury  Bill for the comparable period.  The fund should track the risk benchmark but will naturally  lag as market interest rates, which adjust daily, move.    B. Texas Utility System Junior Lien Revenue Improvement Bonds Escrow Fund Strategy  This escrow fund was established pursuant to an escrow agreement dated as of August 29,  2017 with The Bank of New York Mellon Trust Company, N.A. Escrow will be maintained  with The Bank of New York Mellon Trust Company, N.A. in investments authorized by the  Act and this Policy. The objectives of this fund are to:  1. Ensure safety of principal by investing only in high credit quality investments for  which a strong secondary market exists;   2. Ensure that anticipated cash flows are matched with adequate investment liquidity;  3. Manage  market  and  credit  risk  through  diversification  of  investments  and  the  requirement of AAA ratings; and  4. Attain a market yield commensurate with the objectives and restrictions set forth  in this Policy and the escrow agreement.  C. Airport Passenger Facility Charges (PFC) Fund Strategy  The Airport PFC Fund is revenue comprised of fees imposed as authorized by The Aviation  Safety and Capacity Expansion Act of 1190 (Public Law 101‐508, Title II, Subtitle B). The  revenue is segregated as required by the Passenger Facility Charge Audit Guide for Public  Agencies, issued by the Federal Aviation Administration. The objectives of this fund are to:  1. Ensure safety of principal by investing only in high credit quality investments for  which a strong secondary market exists;   2. Ensure that anticipated cash flows are matched with adequate investment liquidity;  3. Manage  market  and  credit  risk  through  diversification  of  investments  and  the  requirement of AAA ratings; and  4. Attain a market yield commensurate with the objectives and restrictions set forth  in this Policy and the escrow agreement.    D. Law Enforcement Seized Assets Fund Strategy  The Law Enforcement Seized Assets Fund is comprised of seized contraband money that,  per the Code of Criminal Procedure, Chapter 59, Article 8, may be deposited in an interest‐ bearing bank account in the jurisdiction of the attorney representing the State until final  judgment is rendered concerning the contraband. The objective of this fund is to ensure  safety of principal by investing only in a fully FDIC‐insured or collateralized interest‐bearing  depository account of banks in Texas. Since the revenue will only be deposited into this  type of investment, there is no liquidity risk, market risk, diversification risk, nor credit risk.                 City of Corpus Christi    Investment Policy and  Investment Strategies  Adopted  December 4, 2018November 12, 2019 i  TABLE OF CONTENTS I. POLICY STATEMENT .............................................................................. 1  II. SCOPE .................................................................................................. 1  III. PRUDENCE .......................................................................................... 2  IV. OBJECTIVES ........................................................................................ 2  V. LEGAL LIMITATIONS AND AUTHORITIES.............................................. 3  VI. DELEGATION OF AUTHORITY AND RESPONSIBILITY ........................... 3  VII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS ..... 5  VIII. AUTHORIZED INVESTMENTS ............................................................ 5  IX. COLLATERALIZATION .......................................................................... 7  X. SAFEKEEPING ....................................................................................... 8  XI. INTERNAL CONTROLS ....................................................................... 98  XII. REPORTING ........................................................................................ 9  XIII. DEPOSITORIES ................................................................................ 10  XIV. AUDITS AND COMPLIANCE WITH LAWS ......................................... 10  XV. INVESTMENT POLICY ADOPTION .................................................... 11  XVI. INVESTMENT STRATEGIES .............................................................. 12  APPENDIX  A. RESOLUTION ...................................................................................... 14  1  CITY OF CORPUS CHRISTI  INVESTMENT POLICY AND INVESTMENT STRATEGIES  Adopted December 4, 2018November 12, 2019      This Investment Policy (“Policy”) sets forth the specific policies and guidelines and general  strategy for the investment of funds of the City of Corpus Christi ("City") in order to achieve  the City's goals of safety, liquidity, diversification, and yield and to preserve the public trust.  This Policy satisfies the statutory requirements of the Public Funds Investment Act, Texas  Government Code, Chapter 2256 ("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 City that the administration of its fun ds 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 City and conforming to all federal, State  and local laws, rules and regulations governing the investment of public funds.    The receipt of a reasonable yield is secondary to the requirements for safety and liquidity.  Earnings from investment will be used in a manner that best serves the interests of the City.      II. SCOPE    This Policy governs the investment of all funds of the City as reported in the CAFR, except for  the following:    A. Employee’s Retirement Fund, and  B. Fireman’s Retirement System.    With respect to the funds of non‐profit corporations that are established by City Council  resolution and act on behalf of the City in accordance with State law, this Policy shall prevail in  the absence of a specific investment policy adopted by the non‐profit corporation. In addition  to this Policy, the investment of bond proceeds and other bond funds (including debt and  reserve funds) of the City or of a non‐profit corporation established by the City and acting on  behalf of the City in accordance with State law shall be governed and controlled by their  creating  ordinance,  resolution  or  trust  indenture,  including  the  authorization  of  eligible  investments,  and  by  the  provisions  of  the  Internal  Revenue  Code  of  1986,  as  amended,  including all regulations and rulings promulgated thereunder applicable to the issuance of tax‐ exempt obligations.  2  All funds in the investment portfolio (“Portfolio”) of the City are managed as a pooled fund  group, referenced in this Policy as the City’s Pooled Fund, except the following, which are  managed as separately invested assets:    A. Texas Utility System Junior Lien Revenue Improvement Bonds Escrow;  B. Airport Passenger Facility Charges (PFC); and  C. Law Enforcement Seized Assets.      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 prevailing circumstances,  that  a  person  of  prudence,  discretion,  and  intelligence  would  exercise  in  the  management  of  the  person’s  own  affairs,  not  for  speculation,  but  for  investment,  considering the probable safety of capital and the probable income to be derived.      IV. OBJECTIVES    All funds shall be managed and invested with four primary objectives, in order of their priority:    A. Safety   The preservation and safety of principal is the City’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  City 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. 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 City.        3  D. Diversification  The City will diversify its investments by maturity and market sector in an effort to avoid  incurring unreasonable and avoidable market risks.      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 the Act, this Policy, and any applicable  financial indentures or trust requirements.        VI. DELEGATION OF AUTHORITY AND RESPONSIBILITY    All participants in the investment process shall seek to act responsibly as custodians of the  public trust.     A. City Council  The City Council has ultimate fiduciary responsibility for all funds. The City Council is  responsible for reviewing and adopting the Policy on no less than an annual basis. The City  Council shall receive and review quarterly investment reports, approved by the Investment  Committee, from the Investment Officers.    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  consist of the City Manager, Assistant City Managers, Chief Financial Officer, Director of  Financeial  Services  &  Business  Analysis, Assistant  Director  of  Finance  &  Business  AnalysisCity  Attorney,  and  Director  of  Management  and  Budget.  The  Investment  Committee  shall  include  in  its  deliberation  such  topics  as:  economic  outlook,  diversification, maturity structure, risk, and performance of the portfolio. At least annually,  the Investment Committee shall review, revise, and adopt a list of qualified brokers that  are authorized to engage in investment transactions with the City.  The  Investment  Committee shall be responsible for monitoring, reviewing, and making recommendations  regarding the Policy to the City Council. The Investment Committee will review quarterly  investment reports before submission to the City Council.     C. Investment Officers  Investment Officers are designated by City Council resolution until such designation is  rescinded. The authority to invest City funds and the execution of any documentation  necessary is granted to the Investment Officers consisting of the Chief Financial Officer,  Director of Financial Servicese & Business Analysis, Assistant Director of Financial Servicese  &  Business  Analysis  over  Accounting,  City  Treasurer  and  Investment  Analyst.  The  4  Investment Officers are responsible for the daily operation of the investment program;  shall comply with this Policy, the Act, and all applicable federal, State, and City laws, rules,  and regulations; and will provide complete reports to the Investment Committee on a  quarterly basis. The Investment Officers will retain all documentation  on  investment  transactions.    Each Investment Officer, including the Director of Financial Services, shall attend at least  10 hours of training within 12 months after taking office or designation as an Investment  Officer and eight hours of investment training in each succeeding two‐year fiscal period.  Training must be received from an independent source approved by the City’s Investment  Committee and must include education in investment controls, security risks, strategy risks,  market risks, diversification of the investment portfolio and compliance with the Act.    The Investment Officers will avoid any transaction that might impair public confidence in  the City. The Investment Officers may not engage in an investment transaction except as  provided  under  the  terms  of  this  Policy.  In  order  to  ensure  quality  and  capability  of  investment management, the Investment  Officers  shall  possess  sufficient  working  knowledge of economics and securities markets, as well as the experience and judgment  necessary to carry out the responsibilities outlined in this Policy.    D. Investment Advisor  The City Council may contract with an investment management firm registered under the  Investment  Advisers  Act  of  1940 (15  U.S.C.  Section  80b‐1  et  seq.)  or  with  the  State  Securities Board to provide for the investment and management of its public funds or other  funds under its control. A contract made under authority of this subsection may not be for  a term longer than two years. A renewal or extension of the contract must be made by the  City Council by ordinance or resolution.    E. Ethics and Conflicts of Interest  Investment Officers shall comply with the City’s Code of Ethics  which requires disclosure of  financial  interests  each  year.  Investment  Officers  shall  refrain  from  personal  business  activities that could conflict with proper execution of the investment program or which  could impair the ability to make impartial investment decisions. Investment Officers shall  disclose to the City Council any material investment decisions and financial interests in  institutions that conduct investment or banking transactions with the City.    Investment Officers must file a disclosure statement with the T exas Ethics Commission and  City Council if:  1. The  Investment  Officer  has  a  personal  business  relationship  with  a  business  organization offering to engage in an investment transaction with the City (as  defined in 2256.005 (i)(1‐3)); or  2. The  Investment  Officer  is  related  within  the  second  degree  by  affinity  or  consanguinity, as determined under Chapter 573 of the Texas Government Code,  5  to an individual seeking to transact investment business with the City.      VII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS    All investment transactions shall be made through the financial institutions or broker/dealers  approved by the Investment Committee. No investment transactions may be entered into with  a brokerage subsidiary of the City’s safekeeping bank in order to perfect delivery versus  payment (DVP) requirements for trade independence.    Th Investment Officers will provide each authorized financial institution and broker/dealer a  copy of this Policy to ensure that they are familiar with the goals and objectives of the City as  required by the Act.     Investments shall only be made with those financial institutions or broker/dealers (including  money market mutual funds and local government investment pools) which have provided the  City  with  a  written  certification  executed  by  a  qualified  representative  of  the  firm  acknowledging that the business organization has:    A. Received, and thoroughly reviewed the Policy; and  B. Implemented reasonable controls and procedures in an effort to preclude investment  transactions not authorized by the Policy, except to the extent that this authorization is  dependent on an analysis of the makeup of the City’s Portfolio or requires an interpretation  of subjective investment standards.    The Investment Officers will request the Investment Committee authorize the deletion of  financial institutions or broker/dealers for:    A. Slow response time;  B. Inability to compete with other authorized firms;  C. Insufficient market information on technical or fundamental expectations based on  economic indicators;  D. Failed transactions or continuing operations difficulties; or  E. Unwillingness to abide by this 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 securit ies are approved for investment  of public funds by State statute, they will not be eligible for investment by the City until this  Policy has been amended and the amended version adopted by the City Council. The City  6  is not required to liquidate investments that were authorized investments at the time of  purchase (2256.017).  1. Obligations of the U.S. Government, its agencies and instrumentalities, excluding  mortgage  backed  securities,  with  a  maximum  stated  maturity  of  three  years  [2256.009(a)(1)].  2. Fully  Federal  Deposit  Insurance  Corporation  (FDIC)  insured  or  collateralized  depository certificates of deposit of a depository institution that has its main office  or a branch office 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 through a primary government  securities dealer, as defined by the Federal Reserve, or a financial institution doing  business in this State.  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  net  asset  value  and  specifically approved  for  participation by a resolution of the City Council (2256.016).  5. AAA‐rated, SEC registered no‐load money market mutual funds which strive to  maintain a $1 net asset value [2256.014(a)].  6. Fully FDIC insured or collateralized interest‐bearing depository accounts of banks in  Texas [2256.009(a)(7)].  7. General debt obligations of any U.S. state rated no less than A by a nationally  recognized rating agency and with a maximum stated maturity of two  years  [2256.009(a)(5)].  8. FDIC insured brokered certificate of deposit securities from a bank in any U.S. state,  DVP to the City’s safekeeping agent, not to exceed two years 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 [2256.010(b)].  9. A1/P1 rated commercial paper with a maximum maturity of 180 days (2256.013).  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  It is the policy of the City to require competitive bidding for all security purchases and sales,  except for:  1. Transactions with money market mutual funds and local government investment  pools;  2. Treasury and agency securities purchased at issue;  3. Automatic overnight “sweep” transactions with the city depository;   7  4. Fully insured certificate of deposit placed in accordance with the Act [2256.010 (b)];  5. Repurchase agreements; and  6. Guaranteed investment contracts.  At least three bids or offers must be solicited for all other transactions involving individual  securities. In situations where the exact security is not offered by other dealers, offers on  the closest comparable investment may be used to establish a fair market price for the  security. Bids for certificates of deposit may be solicited in any manner permitted by the  Act.    C. DVP Requirement  All  transactions,  excluding  local  government  investment  pool  and  mutual  fund  transactions, shall be conducted on a DVP basis.      IX. COLLATERALIZATION    The  City  requires  that  all  uninsured collected balances plus accrued  interest,  if  any,  in  depository  accounts  be  secured  in  accordance  with  the  requirements  of  the  Depository  Services Agreement, this Policy, the Public Funds Collateral Act (Texas Government Code,  Chapter 2257), and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.    A. Time and Demand Deposit Pledged Collateral  Consistent with State law, the City requires all bank time and demand deposits to be  federally  insured  and  collateralized  above  federal  insurance  coverage  with  eligible  securities. Depository collateral is pledged to and not owned by the City.     All collateral shall be held by an independent third‐party custodian approved by the City  under  an  executed  collateral  agreement  with  the  pledging  bank. The  custodian  shall  provide a monthly report of the collateral. The value of pledged securities must be at least  102% of deposits including accrued interest.     Eligible collateral securities shall only include:  1. Obligations of the U.S. Government, its agencies and instrumentalities, including  mortgage backed securities and collateralized mortgage obligations passing the  Federal Reserve bank test,  2. Municipal debt obligations rated not less than A by a nationally recognized rating  agency, or  3. Letters of credit issued to the City by the Federal Home Loan Bank.    The City’s Investment Officers reserve the right to accept or r eject any form of collateral or  enhancement at their sole discretion.    Collateralization often requires substitution. The substituted collateral’s market value will  8  be calculated and, if its market value is equal to or greater than the required collateral  value, the substitution is allowed. Substitutions should be limited to minimize the City’s  transactional recording requirements.  Should the collateral’s market value exceed the required amount, the pledging Institution  may request approval from an Investment Officer to reduce collateral. Collateral reductions  may be permitted only if the City’s records indicate that the total collateral market value  exceeds the required amount.    B. Repurchase Agreements Owned Collateral  Collateral under a repurchase agreement is owned by the City (2256.011). It will be held by  an independent third‐party safekeeping institution approved by the City 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 third‐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 U.S. Government, its agencies and instrumentalities including  mortgage‐backed securities and CMO which pass the bank test; or  3. Debt obligations of any U.S. state or U.S. state sub‐division rated A or better by at  least one nationally recognized rating agency.      X. SAFEKEEPING    The  City  shall  maintain  safekeeping  with  its  banking  institution  or  other  banks  for  the  safekeeping of City‐owned securities (including those owned under a repurchase agreement  or guaranteed investment contract).  All collateral must be held in the City’s name and must  be so reflected on the safekeeping receipts. All security transactions shall be settled on a DVP  basis by the safekeeping institution (2256.005).     Securities shall not be held in any brokerage account.  Securities shall not be bought from the  City’s depository bank in order to provide perfected DVP.    The safekeeping institution shall be required to issue safekeeping receipts listing each specific  security, rate, description, maturity, Committee on Uniform Security Identification Procedures  (CUSIP) number, and other pertinent information which will be maintained by the Investment  Officers.          9  XI. INTERNAL CONTROLS    The Investment Officers will maintain controls to regulate the activities of the investment  program in accordance with this Policy. 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. In conjunction with the annual financial audit, a compliance  audit of management controls on investments and adherence to this Policy shall be performed.     A. Cash Flow Forecasting  Cash flow analysis and forecasting is designed to protect and sustain  cash  flow  requirements of the City.  Executive management of the City 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 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. An investment that requires a  minimum rating under the Act does not qualify as an authorized investment during the  period the investment does not have the minimum rating. The City shall take all prudent  measures that are consistent with this Policy to liquidate an investment that does not have  the minimum rating. If any security falls below the minimum rating required by Policy or  law, the Investment Officers shall notify the Committee 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 certificates of deposit owned by the City based  upon information from the FDIC. If any bank has been acquired or merged with another  bank in which brokered certificates of deposit are owned by the City, the Investment  Officers shall immediately liquidate any brokered certificate of deposit which places the  City above the FDIC insurance level.      XII. REPORTING    In accordance with the Act (2256.023), not less than quarterly, the Investment Officers shall  prepare  and  submit  to  the  Investment  Committee  and  City  Council  a  written  report  of  investment transactions for all funds covered by the Act and this Policy for the preceding  reporting period within a reasonable time after the end of the period. The report must:  10    A. Describe in detail the investment position of the portfolio on the date of the report;  B. Be prepared jointly by all Investment Officers of the City;  C. Be signed by each Investment Officer of the City;  D. Contain a summary statement of each pooled fund group that states the:  1. Beginning market value for the reporting period;  2. Ending market value for the period; and  3. Fully accrued interest for the reporting period;  E. State the book value and market value of each separately invested asset at the end of  the reporting period by the type of asset and fund type invested;  F. State the maturity date of each separately invested asset that has a maturity date;  G. State the account or fund or pooled group fund in City for which each individual  investment was acquired; and  H. State the compliance of the investment portfolio of the City as it relates to:  1. The investment strategy expressed in this Policy; and  2. Relevant provisions of Section 2256.023 of the Act.    The quarterly reports prepared by the Investment Officers shall be formally reviewed at least  annually by an independent auditor, and the result of the review shall be reported to City  Council by that auditor.    In addition to quarterly reports, the Investment Officers will submit to the Director of Financial  Services the following reports on a monthly basis:    A. Cash position by bank account;  B. Collateral position; and  C. Investment transaction.    Market prices for market value calculations shall be obtained from nationally recognized  securities  databases  including  those  provided  by  the  City’s  depository  bank  through  its  safekeeping services and Bloomberg Professional Services.      XIII. DEPOSITORIES    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. AUDITS AND COMPLIANCE WITH LAWS    Each banking institution agrees to comply with all federal, State, and local laws, rules, and  11  regulations. The personnel or officers of such institution shall be fully qualified and authorized  under federal, State, and local law to perform the services set out under this Policy. Each  institution  shall  permit the  Investment  Officers  to  audit,  examine,  and  make  excerpts  or  transcripts from such records of all contracts, invoices, materials, and other data relating to  applicable investments.      XV. INVESTMENT POLICY ADOPTION    The City Council shall review and adopt by resolution its Investment Policy and Investment  Strategies not less than annually, and the approving resolution shall designate any changes  made to the Policy and Strategies.                                  <This space is intentionally left blank.>     12  XVI. INVESTMENT STRATEGIES    The City’s Investment Portfolio (“Portfolio”) will be designed and managed based on projected  cash flows to provide for all anticipated and projected cash needs for each fund.  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 executive management of the  City will be incorporated into investment decisions. The overall investment program shall be  designed  and  managed  with  a  degree  of  professionalism  worthy  of public trust.  The  investment strategy for funds established after the annual Policy adoption will be managed in  accordance with the terms of this Policy and applicable agreements until a specific strategy is  reviewed and adopted.  A. Pooled Fund Strategy  The City’s Pooled Fund is an aggregation of City funds which include tax receipts, enterprise  revenue, fine and fee revenues, as well as, bond proceeds, grants, gifts, and endowments.  The City’s Pooled Fund may include funds from various Corporations associated with the  City which receive income distributions from their pro‐rata share of the full fund group.  The  City’s  Pooled  Fund  is  maintained  to  meet  anticipated  daily cash  needs  for  City  operations, capital projects, and debt service payments. The objectives of this fund are to:  1. Ensure safety of principal by investing only in high‐credit 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;  3. Limit market and credit risk through diversification; and  4. Attain a market yield commensurate with the objectives and restrictions set forth  in this Policy.    The City’s Pooled Fund shall have a maximum dollar‐weighted average maturity (WAM) of  one year (365 days) designed to meet anticipated cash flow needs. The fund shall be  laddered based on cash flow analysis to provide ongoing liquidity for anticipated needs and  provide for reasonable extension.    A minimum of 15% of the City’s Pooled Fund shall be held in cash or cash equivalents for  liquidity and no more than 40% may be invested longer than one year. Changes in City cash  flows  may  change  percentage  representations  over  time.  Unless  approved  by  the  Investment Committee, the target percentages  specified  shall  not  be  exceeded  for  a  temporary period greater than thirty (30) days without the Investment Officers taking  corrective action.    The risks in the City’s Pooled Fund shall be measured quarterly against a risk benchmark  designed  to  mirror  the  authorized  market  investments  and  the  City's  cash  flow  requirements.  Because this fund 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  13  maximum WAM of one year, the risk benchmark is established as the one‐year Treasury  Bill for the comparable period.  The fund should track the risk benchmark but will naturally  lag as market interest rates, which adjust daily, move.    B. Texas Utility System Junior Lien Revenue Improvement Bonds Escrow Fund Strategy  This escrow fund was established pursuant to an escrow agreement dated as of August 29,  2017 with The Bank of New York Mellon Trust Company, N.A. Escrow will be maintained  with The Bank of New York Mellon Trust Company, N.A. in investments authorized by the  Act and this Policy. The objectives of this fund are to:  1. Ensure safety of principal by investing only in high credit quality investments for  which a strong secondary market exists;   2. Ensure that anticipated cash flows are matched with adequate investment liquidity;  3. Manage  market  and  credit  risk  through  diversification  of  investments  and  the  requirement of AAA ratings; and  4. Attain a market yield commensurate with the objectives and restrictions set forth  in this Policy and the escrow agreement.  C. Airport Passenger Facility Charges (PFC) Fund Strategy  The Airport PFC Fund is revenue comprised of fees imposed as authorized by The Aviation  Safety and Capacity Expansion Act of 1190 (Public Law 101‐508, Title II, Subtitle B). The  revenue is segregated as required by the Passenger Facility Charge Audit Guide for Public  Agencies, issued by the Federal Aviation Administration. The objectives of this fund are to:  1. Ensure safety of principal by investing only in high credit quality investments for  which a strong secondary market exists;   2. Ensure that anticipated cash flows are matched with adequate investment liquidity;  3. Manage  market  and  credit  risk  through  diversification  of  investments  and  the  requirement of AAA ratings; and  4. Attain a market yield commensurate with the objectives and restrictions set forth  in this Policy and the escrow agreement.    D. Law Enforcement Seized Assets Fund Strategy  The Law Enforcement Seized Assets Fund is comprised of seized contraband money that,  per the Code of Criminal Procedure, Chapter 59, Article 8, may be deposited in an interest‐ bearing bank account in the jurisdiction of the attorney representing the State until final  judgment is rendered concerning the contraband. The objective of this fund is to ensure  safety of principal by investing only in a fully FDIC‐insured or collateralized interest‐bearing  depository account of banks in Texas. Since the revenue will only be deposited into this  type of investment, there is no liquidity risk, market risk, diversification risk, nor credit risk.     DATE:October 11,2019 TO:Peter Zanoni, City Manager FROM:Daniel McGinn, AICP, Director of Planning & Environmental Services DanielMc@cctexas.com (361) 826-7011 CAPTION: Resolution authorizing Amendment No. 1 to Chapter 380 Economic Development Agreement between the City of Corpus Christi, Texas, voestalpine Texas LLC, and the Port of Corpus Christi Authority of Nueces County, Texas, relating to the development of property. SUMMARY: Voestalpine Texas, LLC, has a Chapter 380 economic development incentive agreement with the City and Port of Corpus Christi Authority regarding Voestalpine’s development of Port- owned property located within the City’s jurisdiction. The City’s recent annexation of land in San Patricio County included the property developed by Voestalpine and affected Voestalpine’s anticipated taxes. The proposed amendment to the Chapter 380 agreement, in conjunction with disannexation, will resolve Voestalpine’s taxation issue while protecting the City’s interest. Staff recommends approval of the amendment to the Chapter 380 agreement to continue to support regional economic development and Voestalpine’s presence in the Coastal Bend. BACKGROUND AND FINDINGS: In 2013, the City entered into a Chapter 380 economic development incentive agreement with the Port of Corpus Christi Authority and its tenant Voestalpine Texas, LLC, an Austrian steel manufacturing company, to rebate ad valorem taxes and 1% of the sales tax that goes to the City’s General Fund in consideration of Voestalpine’s positive economic benefits through capital investments and job creation. The property is in the La Quinta Corridor and Voestalpine opened their plant on this site in 2017. On May 21, 2019, the City annexed approximately 3,451.31 acres of land (or 5.40 square miles) in San Patricio County, including the approximately 460-acre property that the Port leases to Voestalpine. Annexation of the property resulted in changes to Voestalpine’s tax liabilities, specifically a requirement to pay the 1/2% of sales tax that goes to the Type A, Type B and Crime Control funds. The City, Voestalpine, and the Port have been negotiating terms of an amendment to the Chapter 380 agreement to allow the disannexation. The amendment to the agreement guarantees that the City will disannex the property by the end of 2019. Voestalpine Amendment to Voestalpine Texas’ Chapter 380 Economic Development Incentive Agreement AGENDA MEMORANDUM Action Item for the City Council Meeting November 12, 2019 and the Port also agree that they will enter into an Industrial District Agreement with the City, which is another type of economic development incentive, before the Chapter 380 agreement expires on December 31, 2033. Failure to enter into an Industrial District Agreement will require Voestalpine to pay back taxes the City rebated in accordance with Section 5.4(A) of the Chapter 380 agreement. The amended agreement contains terms similar to those in the agreements the City executed with Cheniere and Gulf Coast Growth Ventures. The proposed amendment to the Chapter 380 agreement is consistent with City policy and the Comprehensive Plan as follows: Plan CC Element 7, Goal 6, Strategy 6 states, “Support the evaluation of the use of industrial district agreements in lieu of annexation for industrial area of the city and ETJ.” Plan CC’s Future Land Use Plan indicates this area for industrial development. Plan CC’s Vision Statements identifies that “Our broadly diversified economy provides opportunity for all.” ALTERNATIVES: Staff considered further negotiating the amendment to Voestalpine’s Chapter 380 agreement. Staff did not pursue this alternative because it would require additional time, leading to additional tax liability for Voestalpine. Collection of taxes would be inefficient for the City because the majority of any taxes paid would ultimately have to be refunded under the terms of the current Chapter 380 agreement. FINANCIAL IMPACT: The financial impact of the amendment to the Chapter 380 agreement would occur in 2033 when Voestalpine enters into an Industrial District Agreement upon the expiration of the Chapter 380 agreement and begins “payment in lieu of taxes” (PILOT) or payment for failure to enter into an Industrial District Agreement. RECOMMENDATION: Staff recommends approval of the proposed amendment to the Chapter 380 agreement. The proposed agreement is a means by which the City can continue to support regional economic development and Voestalpine’s presence in the Coastal Bend. LIST OF SUPPORTING DOCUMENTS: Resolution with Amendment to Chapter 380 Agreement Attached Presentation 1 Resolution authorizing Amendment No. 1 to Chapter 380 Economic Development Agreement between the City of Corpus Christi, Texas voestalpine Texas LLC, and the Port of Corpus Christi Authority of Nueces County, Texas, relating to the development of property. WHEREAS, the City of Corpus Christi (“City”) entered into a Chapter 380 agreement with voestalpine Texas LLC (“voestalpine”) and the Port of Corpus Christi Authority (the “Port”) on April 23, 2013; WHEREAS, the Parties wish to add additional terms to the Chapter 380 agreement under Chapter 212 of the Texas Local Government Code and wish to make additional changes to the agreement related to changes in state law; and WHEREAS, the City finds that it is in the best interest of the City to enter into the amendment with voestalpine and the Port to make these necessary changes to the Chapter 380 agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the findings of the City Council and its actions approving this Resolution taken at the council meeting are hereby approved and adopted. SECTION 2. That the City Manager, or designee, is authorized to execute Amendment No. 1 to Chapter 380 Economic Development Agreement between the City of Corpus Christi, Texas voestalpine Texas LLC, and the Port of Corpus Christi Authority of Nueces County, Texas. A copy of said agreement is attached hereto. 2 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 {B1272124.12} AMENDMENT NO. 1 TO CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS, voestalpine Texas LLC, and THE PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS. THIS AMENDMENT NO. 1 TO CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT, dated as of ___________, 2019 (this “Amendment No. 1”) entered into between and among the city of Corpus Christi, Texas a home rule city (the "City"), voestalpine Texas LLC, a Delaware limited liability company (the "Company"), and Port of Corpus Christi Authority of Nueces County, Texas, a political subdivision of the State of Texas (the "Port") and amends that Chapter 380 Economic Development Incentive Agreement dated April 23, 2013 between and among the Company, the City and the Port (as amended, the “Agreement”). Capitalized terms used herein and not specifically defined shall have the meaning in the Agreement. Whereas, the Agreement is governed by both Chapter 380 of the Texas Local Government Code and Section 212.172 of the Texas Local Government Code; Whereas, the City annexed the entire Property on May 21, 2019, and to resolve any outstanding disagreements regarding such annexation, the City and the Company desire by this Amendment No. 1 to provide a process for the City to disannex the portion of the Property described in Amendment No. 1 - Attachment 1; Whereas, the Company agrees to enter into an Industrial District Agreement or similar agreement after the termination of the Term of the Agreement; Whereas, the City and the Company agree that additional changes are needed to the Agreement as a result of the foregoing; and Whereas, the Port is a party to this Amendment No. 1 only for the purposes stated in Section 4.2 of the Agreement; NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1) Section 4.2 of Article IV of the Agreement is hereby amended and restated in its entirety to read as follows: “4.2 Annexation by City; Industrial District Agreement Requirement: (A) The City (i) shall disannex all of the Property that was not included in the City limits prior to the May 21, 2019 annexation (the “De-annexation Tract”) no later than December 31, 2019 and (ii) shall not, in the interim period before disannexation, enforce any regulations, zoning ordinances and other requirements of the City related to or affecting the De-annexation Tract. The De- annexation Tract is depicted in the attached Amendment No. 1 - Attachment 1. {B1272124.12} (B) If, after the disannexation required by Section 4.2(A) is complete, the City, at any time during the Term, attempts again to annex all or any portion of the De- annexation Tract, then, subject only to Section 4.2(H) below, Company and the City shall enter into an Industrial District Agreement (which must contain terms and provisions comparable in all material respects to the most favorable terms and provisions contained in any Industrial District Agreement then in effect to which the City is a party at such time) or into a separate agreement (“Development Agreement”) that will give each Party the same rights, benefits and responsibilities as this Agreement, including, by way of example and not by limitation, an agreement under Section 212.172 of the Texas Local Government Code, rather than allow any portion of the De-annexation Tract to be annexed by the City. The City hereby covenants and agrees to send written notification of the proposed annexation of all or any portion of the De-annexation Tract during the Term of this Agreement to the Company by certified mail, return receipt requested, in addition to any notice required to be sent to the Port or the then-owner of the De-annexation Tract, of its determination to annex the De-annexation Tract, within the notice period required by statute for notice to “property owners” being annexed. The Company will notify the City within 20 days of its receipt of the first notification of the proposed annexation of its desire to enter into an Industrial District Agreement in accordance with this provision. If the Company requests that the Project be placed in an industrial district pursuant to this paragraph and enters into an Industrial District Agreement with the City, then the Port will execute or consent to the resulting Industrial District Agreement as the owner of the land covered by the resulting Industrial District Agreement pursuant to Section 42.044 of the Texas Local Government Code, if it owns such land at that time. If the Company enters into a Development Agreement with the City pursuant to this paragraph, then the Port will execute or consent to such Development Agreement as the owner of the land covered by such Development Agreement, if it owns such land at that time; provided, however, that (1) the Port will not be responsible for making any payments to the City under such Development Agreement, and (2) if the Company fails to make the payments to the City required under such Development Agreement, the City shall be entitled to have a lien on the Company’s leasehold estate, but not on the Port’s land covered by such Development Agreement. (C) If, under any circumstance, the Company is a party to an Industrial District Agreement with the City related to the De-annexation Tract effective during the Term of this Agreement, any payments made under the terms of an Industrial District Agreement shall be reimbursed in accordance with Section 5.1 herein as though such payments were City Tax. In no event shall the foregoing release the Company from paying the amounts of any Agreed Upon Payments which come due under the terms of Section 5.4, and such amounts paid by Company under Section 5.4 shall not be a Reimbursement Amount. (D) Prior to the expiration of the Term or earlier termination of this Agreement, subject only to Section 4.2(H) below, the City and the Company shall enter into an Industrial District Agreement provided by the City with respect to any portion of the De-annexation Tract for which the Company has not already entered {B1272124.12} into an Industrial District Agreement. The Port will execute or consent to the resulting Industrial District Agreement between the City and the Company as the landowner of the land covered by the resulting Industrial District Agreement pursuant to Section 42.044 of the Texas Local Government Code, if it owns such land at that time. The Industrial District Agreement with the City (a) must contain terms and provisions comparable in all material respects to the most favorable terms and provisions contained in any Industrial District Agreement then in effect to which the City is a party; and (b) must be effective on the earlier of (i) the termination of this Agreement, or (ii) January 1, 2034. (E) Notwithstanding the foregoing provisions of Section 4.2(D), the City and the Company may, in lieu of entering into an Industrial District Agreement under such provisions, enter into a Development Agreement, so long as such agreement is approved and executed prior to the effective date of the expiration or earlier termination of this Agreement. If the Company enters into a Development Agreement with the City pursuant to this paragraph, then the Port will execute or consent to such Development Agreement as the owner of the land covered by such Development Agreement, if it owns such land at that time; provided, however, that (1) the Port will not be responsible for making any payments to the City under such Development Agreement, and (2) if the Company fails to make the payments to the City required under such Development Agreement, the City shall be entitled to have a lien on the Company’s leasehold estate, but not on the Port’s land covered by such Development Agreement. (F) If the Company refuses to enter into the Industrial District Agreement provided by the City in accordance with Section 4.2(D) within one hundred and twenty (120) days after the Company receives the Industrial District Agreement, the Company and the Port will be deemed to have made a petition for annexation of all of the De-annexation Tract in accordance with Chapter 43 of the Texas Local Government Code, or its successor, and any such deemed petition by the Company shall also be binding on any other owner of the De-annexation Tract at such time. Payment of any fees under Section 5.4 of this Agreement will not invalidate or revoke the petition for annexation if the Company does not sign the Industrial District Agreement, as herein provided. The City may collect the required payment in accordance with this Agreement and proceed with annexation should the Company not sign the Industrial District Agreement, but in no event shall the Company be liable (financially or otherwise) for any breach or failure to perform by the Port under the terms of this Agreement, nor shall the Port be liable (financially or otherwise) for any breach or failure to perform by the Company under the terms of this Agreement. (G) The agreement of the Company to enter into an Industrial District Agreement or other similar agreement in accordance with this Section 4.2 is hereby consented to by the Port and shall be a continuing obligation of the owner of the De-annexation Tract as long as this Agreement is in effect, and such obligation will be a covenant running with the land. As provided in Section 6.8 of this Agreement, the Company shall not be liable for the refusal of its successors, grantees, trustees, or assigns which have been approved in writing by the City to {B1272124.12} comply with the requirement under this Section 4.2 to enter into an Industrial District Agreement, including the provisions of Section 5.4. (H) Notwithstanding the foregoing, if during the Term the City notifies the Company in writing that there is a bill before the Texas Legislature that would, in the sole but reasonable opinion of the City, prohibit the annexation of an area within the City’s industrial districts, then upon the Company’s receipt of such notice, the obligation of the City under Section 4.2(B) and elsewhere in this Section 4.2 to enter into an Industrial District Agreement shall be suspended and/or terminated, as applicable, and the City and the Company shall commence negotiating in good faith an alternative to an industrial district agreement that will give each Party the same rights, benefits and responsibilities as intended by this Agreement (“Alternate Agreement”), prior to such pending legislation, to the fullest extent lawfully permissible. If the Company enters into an Alternate Agreement with the City pursuant to this paragraph, then the Port will execute or consent to such Alternate Agreement as the owner of the land covered by such Alternate Agreement, if it owns such land at that time; provided, however, that (1) the Port will not be responsible for making any payments to the City under such Alternate Agreement, and (2) if the Company fails to make the payments to the City required under such Alternate Agreement, the City may claim to have a lien on the Company’s leasehold estate, but shall not be entitled to a lien on the Port’s land covered by such Alternate Agreement. Unless the City and the Company can reach mutual agreement on an Alternate Agreement prior to such pending legislation becoming effective, the City may at any time after delivery of written notice under this Section 4.2(H) proceed with annexation, but any annexation by the City under this Section 4.2(H) in advance of pending legislation shall not relieve the City of its good faith obligations, which shall survive annexation under this Section 4.2(H), and should the pending legislation not pass and go into effect during the Term of this Agreement, the City shall once again disannex the portion of the De-annexed Tract annexed under this Section 4.2(H), and the provisions of this Section 4.2 shall continue to apply to the re-disannexed portion of the De- annexed Tract.” 2) Article IV of the Agreement is further amended to add the following Section 4.2.1 between Sections 4.2 and 4.3: “4.2.1 Annexation by Another Entity. If any attempt to annex any portion of the Project or Property is made by another municipality, or if the incorporation of any new municipality should attempt to include within its limits the Project or Property, the City shall seek a temporary and permanent injunction against the annexation or incorporation, with the cooperation of the Company, and shall take any other legal action necessary or advisable under the circumstances. The cost of the legal action shall be borne equally by the Parties hereto; provided, however, the fees of any special legal counsel shall be paid by the Party retaining same. The Company agrees to provide City with prompt notice of any such attempted annexation received by the Company in writing.” {B1272124.12} 3) Article V of the Agreement is amended to add the following Section 5.4 at the end of such Article V: “5.4 Additional Payment Requirement. (A) In addition to any other Agreed Upon Payments, if the Company refuses to enter into the Industrial District Agreement provided by the City in accordance with Section 4.2(D), then within one hundred and twenty (120) days after the expiration or earlier termination of this Agreement, the Company will make an additional payment to the City in an amount equal to the following, whichever is applicable: (i) if the expiration or earlier termination of this Agreement occurs on or after January 1, 2029, an aggregate amount equal to the sum of one hundred percent (100%) of the Agreed Upon Payments for each of the ten (10) calendar tax years immediately preceding the calendar tax year that includes the date of the expiration or earlier termination of this Agreement; or (ii) if the expiration or earlier termination of this Agreement occurs before January 1, 2029, an aggregate amount equal to the sum of one hundred percent (100%) of the Agreed Upon Payments for each calendar tax year from and including the calendar tax year 2019 through and including the calendar tax year that includes the date of the expiration or earlier termination of this Agreement, with such payment being due on the later of (a) one hundred and twenty (120) days after the expiration or earlier termination of this Agreement or (b) if the taxable value of the extraterritorial jurisdiction land and/or the portion of the Project (excluding personal property and inventory) located on the extraterritorial jurisdiction land for the calendar tax year that includes the date of the expiration or earlier termination of this Agreement has not been determined by the relevant appraisal district within ninety (90) days following the expiration or earlier termination of this Agreement, ninety (90) days after such taxable values of the extraterritorial jurisdiction land and/or the portion of the Project (excluding personal property and inventory) located on the extraterritorial jurisdiction land have been determined by the relevant appraisal district.” (B) The obligations contained in this Section 5.4 shall survive the expiration or earlier termination of this Agreement until paid in full, and for the avoidance of any doubt, in no event shall the Company be liable (financially or otherwise) for any breach or failure to perform by the Port (or any other party as expressly provided in Section 6.8) under the terms of this Agreement.” {B1272124.12} 4) Article VI of the Agreement is amended to add the following to the end of Section 6.8 of the Agreement: “Notwithstanding the provisions of this Section 6.8, should the City consent in writing to any requested assignment by the Company, then in such event the Company shall be released from its obligations under Section 5.4, and shall not be liable for any failure or refusal of its successors, grantees, trustees, or assigns to comply with the requirement under Section 5.2(D) to enter into an Industrial District Agreement, including for any resulting liability under Section 5.4.” 5) Amendment No. 1 - Attachment 1 attached to this Amendment is deemed to be attached to the Agreement as “Amendment No. 1 - Attachment 1.” 6) The City will file a copy of this Amendment No. 1 with San Patricio County. 7) All other terms and conditions of the previously executed Agreement between the Parties which are not inconsistent herewith shall continue in full force and effect. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] {B1272124.12} EXECUTED IN DUPLICATE ORIGINALS effective as of this _____day of August, 2019, by the authorized representative of the Parties. City of Corpus Christi _______________________________ Peter Zanoni City Manager Date: __________________________ Attest: __________________________________ Rebecca Huerta City Secretary Approved as to Legal Form on ____ of __________, 20____. __________________________________ Aimee Alcorn-Reed, Assistant City Attorney STATE OF TEXAS § § COUNTY OF NUECES § This instrument was acknowledged before me on the _______ day of __________________, 2019, by Peter Zanoni, City Manager, on behalf of City of Corpus Christi. Notary Public, State of Texas My commission expires: {B1272124.12} voestalpine Texas LLC _______________________________ By: ____________________________ Title: ___________________________ Date: __________________________ ATTEST: ________________________________ By: _____________________________ Title:____________________________ Date: ___________________________ STATE OF TEXAS § § COUNTY OF _________ § This instrument was acknowledged before me on the _______ day of __________________, 2019, by ___________________, as __________________, on behalf of voestalpine Texas LLC. Notary Public, State of Texas My commission expires: {B1272124.12} Port of Corpus Christi Authority of Nueces County, Texas _______________________________ By: ____________________________ Title: ___________________________ Date: __________________________ ATTEST: _______________________________ By: ____________________________ Title: ___________________________ Date: ___________________________ STATE OF TEXAS § § COUNTY OF _________ § This instrument was acknowledged before me on the _______ day of __________________, 2019, by ___________________, as __________________, on behalf of Port of Corpus Christi Authority of Nueces County, Texas. Notary Public, State of Texas My commission expires: {B1272124.12} Amendment No. 1 – Attachment 1 Amendment to Voestalpine Texas’ Chapter 380 Agreement Council Presentation November 12, 2019 1 TX 35 CR 932 Current City Limits Approximately 3,451.31 Acres (5.40 sq. mi.) Voestalpine Texas Site (460 acres) 3 Disannexation Area Approximately 540.79 Acres (0.85 sq. mi.) TX 35 CR 93 4 New City Limits After Disannexation Approximately 2,910.52 Acres (4.55 sq. mi) TX 35 CR 93 DATE: September 27, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, Director, Development Services AlRaymond@cctexas.com (361) 826 - 3276 CAPTION: Ordinance authorizing a Water Arterial Transmission and Grid Main Line Extension Construction and Reimbursement Agreement with Braselton Custom Homes, LTD to extend a water arterial transmission and grid main line for a planned residential subdivision located on CR-33 with a completion date of May 30, 2021; transferring $65,000.00 from the Water Distribution Main Trust Fund to the Water Arterial Transmission and Grid Main Trust Fund; and appropriating $1,485,130.25 from the Water Arterial Transmission and Grid Main Trust Fund to reimburse the Developer per agreement. (District 3) SUMMARY: Braselton Custom Homes LTD is required to construct a 16-inch masterplan water arterial transmission and grid main line extension fronting the development property along County Road 33 to provide water and fire suppression service to the planned residential subdivision phase named London Towne Unit 1. A water masterplan amendment for the 16-inch grid main line was approved by City Council on October 30, 2018. The installation of the new water utilities will extend service to the planned residential subdivision and the surrounding undeveloped properties. The developer has requested a reimbursement agreement in accordance with UDC Section 8.5.1 Water Trust Fund. BACKGROUND AND FINDINGS: Braselton Custom Homes LTD plans to install 4580 linear feet of 16-inch water grid main line per the water masterplan, to service a planned residential subdivision within city limits located on County Road 33 north of FM-43 and south of the Oso Creek. The property encompasses 22.91 acres of platted property with 93 single-family home lots and is zoned RS-4.5. The new 16-inch water grid main line is required to extend water service to the planned subdivision and the surrounding properties per the water master plan. The 16-inch water grid main line will connect to an existing 48-inch water arterial transmission and grid main line located near the north end of County Road 33 and will extend southward to the southern end of the planned subdivision. In the Agreement and appropriating funds for Braselton Custom Homes, LTD for a Water Arterial and Grid Main Line Extension Construction and Reimbursement Agreement AGENDA MEMORANDUM Public Hearing and First Reading for the City Council meeting of November 12, 2019 Second Reading for the City Council meeting of November 19, 2019 future the grid main line can be extended from this point and connect with the 16-inch arterial grid main line along FM-43 completing the masterplan water grid main line. A map of the water line is included as part of the presentation and as a supplemental document. Arterial Transmission and Grid Mains are lines that are used to supply the water grid system up to one square mile and are 12-inches of inside diameter, or larger. The Water Arterial Transmission and Grid Main Trust Fund is used to reimburse developers for constructing arterial grid mains. Additionally, Section 8.5.1 of the UDC authorizes the redistribution of monies between the four trust funds in order to reimburse the developer for projects that exceed the current balance in any single trust fund. City Council gave direction to staff at the August 13 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. Due to the intensive process involved with this study, staff will present their findings to the Trust Fund Stakeholders and City Council with a tentative date of mid-February 2020. ALTERNATIVES: Based upon the current UDC language in section 8.5.1 Water Trust Fund the developer requested reimbursement for the installation of a water arterial transmission and grid main line that that will serve the planned subdivision and surrounding area. 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. Another alternative is to identify the project as a capital improvement project to be constructed by the city. This alternative may delay this project in the short term but would leave the trust funds with a large enough balance to encourage other developers to continue with their planned projects, without having the wait until enough revenue in Trust Fund fees is collected to reimburse developers. FISCAL IMPACT: The total amount requested for the reimbursement agreement is $1,485,130.25 and as of August 30 the Water Arterial Grid Main Trust Fund (4030-21805) has an available balance available of $1,421,865.73, approximately $64,000 less that the amount requested by the developer to install the water arterial and grid main line. A transfer of $65,000.00 from the Distribution Main Trust Fund to the Water Arterial Transmission and Grid Main Trust Fund would give that fund a balance of $1,486,865.73 which would be enough to reimburse the developer for this project. The transfer of monies from one fund to another is permitted under Section 8.5.1.C.4 of the Unified Development Code, with Council Approval. This project will leave the four Trust Funds with a combined available balance of $1,681,124.54. The expenditures for this project are a one-time cost and are not associated with any other projects. The Utility Trust Funds receive monthly deposits generated from Lot and Acreage Fees, Pro-rata Fees and Surcharge Fees that are charged during the platting process. Over time the fees collected and deposited into the Water Trust Fund will replenish the Trust Funds and enable other developer-initiated water infrastructure projects to be reimbursed. The trust fund balances listed are current as of August 30, 2019. Funding Detail: Fund: 4030 Water Arterial Transmission & Grid Main Trust Fund Organization/Activity: 21805 Water Arterial Transmission & Grid Main Trust Mission Element: 777 Project # (CIP Only): N/A Account: 540450 Reimbursement to Developers 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: The request is in accordance with UDC Section 8.5.1 Water Trust Fund and the water masterplan. The installation of this water arterial grid main line will lead to the completion of a masterplan water grid main system and will provide water service to this newly annexed property and the surrounding undeveloped properties. Coupled with the Wastewater Lift Station project associated with the London Towne residential subdivision project, nearly 1000 acres of rural undeveloped property will have access to the newly installed public utilities which will help foster the development of this area within the Corpus Christi ETJ. Staff recommends approval of the applicant’s request. LIST OF SUPPORTING DOCUMENTS: Ordinance (with exhibit) Presentation Certification of Funds Location Map Ordinance authorizing a Water Arterial Transmission and Grid Main Line Extension Construction and Reimbursement Agreement with Braselton Custom Homes, LTD to extend a water transmission and grid main line for a planned residential subdivision located on CR-33 with a completion date of May 30, 2021; transferring $65,000.00 from the Water Distribution Main Trust Fund to the Water Arterial Transmission and Grid Main Trust Fund; and appropriating $1,485,130.25 from the Water Arterial Transmission and Grid Main Trust Fund to reimburse the Developer per agreement. Whereas, UDC §8.5.1.C.4 & §8.5.2.I provides that after a public hearing, City Council may transfer monies from one trust fund to the other in order to better carry out the purposes of this Unified Development Code; and Whereas, the transfer of $65,000.00 from the No. 4030-21806 Water Distribution Man Trust Fund to the 4030-20805 Water Arterial Transmission and Grid Main Trust Fund is necessary to better carry out the purposes of this Unified Development Code. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager o r designee is authorized to execute a Water Arterial Transmission and Grid Main Construction and Reimbursement Agreement (Agreement) attached hereto, with Braselton Custom H omes, LTD for the construction and installation of a 16-inch water arterial transmission and grid main line , for the development of the platted property known as London Towne Unit 1, Corpus Christi, Texas. SECTION 2. Funding in the amount of $65,000.00 is transferred from the No. 4030-21806 Water Distribution Man Trust Fund to the No. 4030-21805 Water Arterial Transmission and Grid Main Trust Fund. SECTION 3 . Funding in the amount of $1,485,130.25 is appropriated from the No.4030- 21805 Water Arterial Transmission and Grid Main Trust Fund, to reimburse the Developer for the construction of a 16-inch water arterial transmission and grid 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 Exhibit 1 Know what'sbelow.Callbefore you dig.S T A T E OF TEX A S PROF E SSIONAL E N G IN EERLICEN S E D MICHAEL C. YORK 124938 Exhibit 3 STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938 5.00' 10.00' 15.00' 20.00' 25.00' 30.00' 35.00' 40.00'EXISTINGGRADEBOTTOMOF PIPE0+80 1+00 1+20 1+40 1+60 1+80 2+00 2+20 2+40 2+60 2+80 3+00 3+20 3+40 3+60 3+80 4+00 4+20 4+40 4+60 4+80 5+00 5+20 5+40 5+60 5+80 6+00 6+208.00'10.87'13.80'13.95'14.10'14.25'14.40'14.55'14.70'14.85'15.00'15.15'15.30'15.45'15.60'15.75'15.90'16.05'16.20'16.35'16.50'16.65'16.80'16.95'17.10'17.25'21.41'21.23'21.18'21.09'21.00'20.91'20.89'21.16'21.40'21.57'21.75'21.89'21.90'21.92'21.96'22.14'22.36'22.60'22.81'23.00'23.20'23.40'23.63'23.85'24.04'24.22'EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 6+20 STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 1+00.00 - STA: 6+20.00 MATCHLINE STA: 6+20.00(SEE SHEET 4 OF 12)1 6+20 6+40 6+60 6+80 7+00 7+20 7+40 7+60 7+80 8+00 8+20 8+40 8+60 8+80 9+00 9+20 9+40 9+60 9+80 10+00 10+20 10+40 10+60 10+80 11+00 11+20 11+40 11+6017.40'17.55'17.70'17.85'18.00'18.15'18.30'18.45'18.60'18.75'18.90'19.05'19.20'19.35'19.50'19.65'19.80'19.95'20.10'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'24.38'24.48'24.59'24.70'24.68'24.72'25.12'25.46'25.71'25.95'26.04'26.34'26.43'26.49'26.49'26.53'26.69'26.81'26.76'26.86'27.01'27.06'27.04'26.99'26.95'26.91'26.90'6+20 11+60 EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00'STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 6+20.00 - STA: 11+60.00 MATCHLINE STA: 11+60.00(SEE SHEET 5 OF 12)MATCHLINE STA: 6+20.00(SEE SHEET 3 OF 12)1 1 11+60 11+80 12+00 12+20 12+40 12+60 12+80 13+00 13+20 13+40 13+60 13+80 14+00 14+20 14+40 14+60 14+80 15+00 15+20 15+40 15+60 15+80 16+00 16+20 16+40 16+60 16+80 17+0020.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'26.89'26.88'26.86'26.85'26.86'26.94'27.02'27.11'27.15'27.09'27.03'26.97'26.90'26.84'26.82'26.80'26.78'26.70'26.65'26.68'26.71'26.74'26.77'26.73'27.07'26.90'26.73'11+60 17+00 EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00'STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 11+60.00 - STA: 17+00.00 MATCHLINE STA: 17+00.00(SEE SHEET 6 OF 12)MATCHLINE STA: 11+60.00(SEE SHEET 4 OF 12)1 1 17+00 17+20 17+40 17+60 17+80 18+00 18+20 18+40 18+60 18+80 19+00 19+20 19+40 19+60 19+80 20+00 20+20 20+40 20+60 20+80 21+00 21+20 21+40 21+60 21+80 22+00 22+20 22+4020.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'20.25'26.67'26.62'26.61'26.60'26.59'26.59'26.63'27.16'27.18'27.19'26.75'26.68'26.61'26.63'26.69'26.75'26.83'26.91'26.96'27.01'27.07'26.98'26.96'27.05'26.97'27.03'27.08'17+00 22+40 EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00'STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 17+00.00 - STA: 22+40.00 MATCHLINE STA: 22+40.00(SEE SHEET 7 OF 12)MATCHLINE STA: 17+00.00(SEE SHEET 5 OF 12)1 1 22+40 22+60 22+80 23+00 23+20 23+40 23+60 23+80 24+00 24+20 24+40 24+60 24+80 25+00 25+20 25+40 25+60 25+80 26+00 26+20 26+40 26+60 26+80 27+00 27+20 27+40 27+60 27+8020.25'20.25'20.25'20.25'20.30'20.35'20.40'20.45'20.50'20.55'20.60'20.65'20.70'20.75'20.80'20.85'20.90'20.95'21.00'21.05'21.10'21.15'21.20'21.25'21.30'21.35'21.40'27.12'27.15'27.18'27.21'27.24'27.31'27.36'27.41'27.47'27.47'27.45'27.44'27.44'27.52'27.64'27.67'27.69'27.72'27.78'27.84'27.90'27.95'28.02'28.10'28.20'28.26'28.32'22+40 27+80 EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00'STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 22+40.00 - STA: 27+80.00 MATCHLINE STA: 27+80.00(SEE SHEET 8 OF 12)MATCHLINE STA: 22+40.00(SEE SHEET 6 OF 12)1 1 27+80 28+00 28+20 28+40 28+60 28+80 29+00 29+20 29+40 29+60 29+80 30+00 30+20 30+40 30+60 30+80 31+00 31+20 31+40 31+60 31+80 32+00 32+20 32+40 32+60 32+80 33+00 33+2021.45'21.50'21.65'21.80'21.95'22.10'22.25'22.40'22.55'22.70'22.85'23.00'23.15'23.30'23.45'23.60'23.75'23.90'24.05'24.20'24.35'24.50'24.65'24.80'24.95'25.10'25.25'28.37'28.41'28.47'28.57'28.67'28.78'28.89'29.09'29.21'29.32'29.43'29.49'29.44'29.49'29.68'29.87'30.05'30.24'30.42'30.60'30.86'31.15'31.09'31.33'31.39'31.45'31.58'27+80 EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00' 33+20 STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 27+80.00 - STA: 33+20.00MATCHLINE STA: 27+80.00(SEE SHEET 7 OF 12)MATCHLINE STA: 33+20.00(SEE SHEET 9 OF 12)1 1 33+20 33+40 33+60 33+80 34+00 34+20 34+40 34+60 34+80 35+00 35+20 35+40 35+60 35+80 36+00 36+20 36+40 36+60 36+80 37+00 37+20 37+40 37+60 37+80 38+00 38+20 38+40 38+60 38+8025.40'25.55'25.70'25.85'26.00'26.15'26.30'26.45'26.60'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'31.68'31.89'32.04'32.10'32.27'32.49'32.77'32.87'32.97'33.06'32.93'33.01'33.09'33.22'33.39'33.51'33.45'33.39'33.35'33.32'33.30'33.31'33.33'33.37'33.43'33.47'33.46'33.45'EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00' 38+80 STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 33+20.00 - STA: 38+80.00MATCHLINE STA: 33+20.00(SEE SHEET 8 OF 12)MATCHLINE STA: 38+80.00(SEE SHEET 10 OF 12)1 1 38+80 39+00 39+20 39+40 39+60 39+80 40+00 40+20 40+40 40+60 40+80 41+00 41+20 41+40 41+60 41+80 42+00 42+20 42+40 42+60 42+80 43+00 43+20 43+40 43+60 43+80 44+00 44+2026.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'33.44'33.44'33.44'33.44'33.44'33.43'33.40'33.38'33.39'33.40'33.39'33.38'33.37'33.37'33.36'33.34'33.32'33.30'33.28'33.25'33.25'33.24'33.23'33.19'33.14'33.12'33.12'EXISTINGGRADEBOTTOMOF PIPE5.00' 30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00' 44+20 STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 38+80.00 - STA: 44+20.00MATCHLINE STA: 38+80.00(SEE SHEET 9 OF 12)MATCHLINE STA: 44+20.00(SEE SHEET 11 OF 12)1 5.00' 10.00' 15.00' 20.00' 25.00' 30.00' 35.00' 40.00' 44+20 44+40 44+60 44+80 45+00 45+20 45+40 45+60 45+80 46+00 46+20 46+40 46+60 46+80 47+00 EXISTINGGRADEBOTTOMOF PIPE26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'26.75'33.10'33.04'32.99'33.01'33.03'33.04'33.03'33.02'33.03'33.07'33.10'33.06'33.03'33.03'EXISTINGGRADEBOTTOMOF PIPE30.00' 35.00' 40.00' 25.00' 20.00' 15.00' 10.00' 5.00'STATEOFTEXASP R O FESSIONALENGINEERLICENSEDMICHAEL C. YORK124938HORIZ: 1"=20' VERT: 1"=5' 16" WATER GRID MAIN PLAN AND PROFILE STA: 44+20.00 - STA: 46+80.00MATCHLINE STA: 44+20.00(SEE SHEET 10 OF 12)1 MATCHLINESTA: 17+40.00(SEE THIS SHEET)MATCHLINESTA: 17+40.00(SEE THIS SHEET)MATCHLINESTA: 34+40.00(SEE THIS SHEET)MATCHLINESTA: 34+40.00(SEE THIS SHEET) Exhibit 4 City Council Presentation November 12, 2019 London Towne Unit 1 Reimbursement Agreement Aerial Map N Vicinity Map N Oso Creek County Road 33 London ISD Existing 16-inch water line along FM 43 London Towne Unit 1 Prosed 4,580 linear feet of 16-inch grid main water line (purple line) Existing 1-inch water line (blue) Existing 48-inch water line (blue) Recommendation Approval Water Master Plan N Proposed 16-inch water line (green line) London Towne Unit 1 Existing 48-inch water line Existing 16-inch water line Proposed master planned water lines (red dashed line) Preliminary Plat DATE: October 15, 2019 TO: Peter Zanoni, City Manager FROM: Keith Selman, Assistant City Manager KeithSe@cctexas.com 361-826-3898 CAPTION: Ordinance amending Section 53-109 of the City Code which allows golf carts in certain areas by adding neighborhood electric vehicles and off-highway vehicles as an allowable mode of transportation within the city, specifically North Padre Island, Mustang Island, and North Beach; and providing for a penalty. SUMMARY: Ordinance amending the addition of OHV’s to City Code Section 53-109 which allows golf carts in certain areas by adding NEC’s and OHV’s as an allowable mode of transportation on city streets in North Padre Island, Mustang Island, and North Beach. BACKGROUND AND FINDINGS: House Bill 1548 was approved in the 2019 Texas legislative session. HB 1548 made several changes relating to Golf Carts, Neighborhood Electric Vehicles, and Off-Highway Vehicles. The part of the bill allowing City Council regulation of off highway vehicles states: (f) authorizes a city to prohibit the operation of an unregistered OHV described in (6)(e), above if the governing body determines the prohibition is necessary in the interest of safety; (g) authorizes a city to allow the operation of an unregistered OHV on all or part of a highway that is in the corporate boundaries of the city and has a posted speed limit of not more than 35 miles per hour; On July 23, 2019, a citizen requested changes to City ordinances that were authorized in recent state legislation concerning OHV’s, which are all-terrain vehicles and utility vehicles. Section 53- 109 of the City Code currently authorizes golf carts to drive on highways at specific locations. Section 53-109 is amended with the following changes: • addition of neighborhood electric vehicles and off-highway vehicles where golf carts are currently allowed • ability to cross a highway at an intersection with a highway speed limit of more than 35 miles per hour only; (1) in a master planned community (2) on a public or private beach open to vehicular traffic (3) during the day time; and not more than two miles from the Ordinance amending City Code of Ordinances regarding operation of golf carts , neighborhood electric vehicles (NEC’s) and off-highway vehicles (OHV’s) within the City limits AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting November 12, 2019 Second Reading Ordinance for the City Council Meeting November 19, 2019 location where the vehicle is usually parked and for transportation to or from a golf course • display of a slow-moving-vehicle emblem (requirements noted) when operated on a public highway • equipment requirements to operate within the City limits: o headlamps, taillamps, reflectors, parking brake, and mirrors o lighted headlight and taillight one-half hour after sunset to one-half hour before sunrise o sit in a built-in seat and wear a safety belt o display copy of section 53-109 if vehicle is available for rent ALTERNATIVES: An alternative would be to not amend Section 53-109 and allow only golf carts on city streets. Adding neighborhood electric and off-highway vehicles better reflects the desired uses of the communities that it affects without compromising the health, safety and welfare of the motoring public. FISCAL IMPACT: There is no fiscal impact for this item. RECOMMENDATION: City staff has reviewed the potential impact of this amendment and find the health, safety, and general welfare of the motoring public will not be compromised with this allowance. The Island Strategic Advisory Committee (ISAC) recommends the addition of off-highway vehicles (OHV’s)” on September 4, 2019. Also, the Transportation Advisory Commission approved adding neighborhood electric vehicles (NEC’s) and off-highway vehicles on October 30, 2019. LIST OF SUPPORTING DOCUMENTS: Ordinance Page 1  Ordinance amending Section 53-109 of the City Code which allows golf carts in certain areas by adding neighborhood electric vehicles and off-highway vehicles as an allowable mode of transportation within the city, specifically North Padre Island, Mustang Island, and North Beach; and providing for a penalty.     WHEREAS, Chapters 551 and 551A of the Texas Transportation Code allow operation of golf carts, neighborhood electric vehicles, and unregistered off-highway vehicles under certain circumstances;   WHEREAS, Texas law allows municipalities to prohibit operation of such vehicles on public highways within the city limit if such prohibition is in the interest of safety; and   WHEREAS, it is in the interest of safety of the City’s residents to limit the areas in which golf carts, neighborhood electric vehicles, and unregistered off-highway vehicles may operate on public highways within the City.     NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF CORPUS CHRISTI, TEXAS:   SECTION 1. The City Council specifically finds that the foregoing statements included in the preamble of this ordinance are true and correct and adopts such findings for all intents and purposes.   SECTION 2. That Chapter 53 of the City Code of Ordinances, Article V, Division 1, Section 53-109, Operation of golf cart is amended by adding the underlined text and removing the struck through text, as follows:   Sec. 53-109. - Operation of golf cart, neighborhood electric vehicle, or off-highway vehicle.   (a) As authorized under V.T.C.A., Transportation Code §551.404(a), A person who holds a valid driver's license may operate a golf cart, neighborhood electric vehicle, or off- highway vehicle, as defined by Chapters 551 and 551A of the Texas Transportation Code, on a public highway with a posted speed limit of not more than thirty-five (35) miles per hour and may cross a highway at an intersection, including an intersection with a highway that has a posted speed limit of more than 35 miles per hour only if:   (1) In a master planned community:   (A) that has in place a uniform set of restrictive covenants; and   (B) for which a county or municipality has approved a plat;   (2) On a public or private beach that is open to vehicular traffic; Page 2  (3) If the golf cart, neighborhood electric vehicle, or off-highway vehicle is operated:   (A) during the daytime; and   (B) not more than two miles from the location where the golf cart, neighborhood electric vehicle, or off-highway vehicle is usually parked and for transportation to or from a golf course;   (1)(4) If Tthe person is employed by a political subdivision of the State of Texas, and is performing a duty for the political subdivision that requires the operation of a golf cart, neighborhood electric vehicle or off-highway vehicle owned by the political subdivision;   (2)(5) If Tthe person is crossing a public highway at a marked or designated crossing that connects portions of the golf course separated by the public highway;   (3)(6) If Tthe person is employed by a restaurant, hotel, or tourist related business, and is transporting guests in a golf cart, neighborhood electric vehicle, or off- highway vehicle owned by the restaurant, hotel, or tourist related business, to and from the parking lots to the business;   (4)(7) If Tthe person is employed by a restaurant, hotel, or tourist related business, and is transporting supplies between two (2) facilities under common ownership in a golf cart, neighborhood electric vehicle, or off-highway vehicle owned by the restaurant, hotel, or tourist related business;   (5)(8) If the golf cart, neighborhood electric vehicle, or off-highway vehicle is operated on a highway within the Ccity limits on Mustang Island east of S.H. 361 and north of Packery Channel;   (6)(9) If the golf cart, neighborhood electric vehicle, or off-highway vehicle is operated on portions of Mustang and Padre Island within the Ccity limits that are south of Packery Channel; or   (7)(10) If the golf cart, neighborhood electric vehicle, or off-highway vehicle is operated on a highway within the city limits on North Beach east of U.S. 181 and north of the Harbor Bridge.   (b) A golf cart, neighborhood electric vehicle, or off-highway vehicle that is operated at a speed of not more than 25 miles per hour is required to display a slow-moving-vehicle emblem when it is operated on a public highway. The slow-moving-vehicle emblem must:   (1) have a reflective surface designed to be clearly visible in daylight or at night from the light of standard automobile headlamps at a distance of at least 500 feet; Page 3  (2) be mounted base down on the rear of the vehicle and at a height that does not impair the visibility of the emblem; and   (3) be maintained in a clean, reflective condition.   (c) A golf cart operated on a public highway must be equipped with headlamps, taillamps, reflectors, parking brake, and mirrors.   (d) The following equipment requirements apply to off-highway vehicles operated within the City limits:   (1) An off-highway vehicle that is operated on public off-highway vehicle land, a beach, or a highway must be equipped with:   (A) a brake system maintained in good operating condition;   (B) an adequate muffler system in good working condition; and   (C) a United States Forest Service qualified spark arrester.   (2) An off-highway vehicle that is operated on public off-highway vehicle land, a beach, or a highway must display a lighted headlight and taillight:   (A) during the period from one-half hour after sunset to one-half hour before sunrise; and   (B) at any time when visibility is reduced because of insufficient light or atmospheric conditions.   (e) The operator and any passengers of a golf cart, neighborhood electric vehicle, or off- highway vehicle must sit in a built-in seat and wear a safety belt if the vehicle is so equipped.   (f) Any person or entity that offers golf carts, neighborhood electric vehicles, or off- highway vehicles for rent within the City limits must display a copy of this section 53-109 within the location where the vehicles are picked up or rented and in every vehicle available for rent.   SECTION 3. Violation of any provision of Section 53-109 is an offense punishable in accordance with Section 1-6 of the City Code.   SECTION 4. That publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter.   SECTION 5. This ordinance takes effect upon publication. Page 4        That the foregoing ordinance was read for the first time and passed to its second reading on this the day of _, 20 , by the following vote:   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 20 , 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 , 20 .   ATTEST:           Rebecca Huerta Joe McComb City Secretary Mayor AGENDA MEMORANDUM Public Hearing & First Reading Ordinance City Council Meeting October 29, 2019 Second Reading Ordinance City Council Meeting November 12, 2019 DATE: October 21, 2019 TO: Peter Zanoni, City Manager FROM: Arlene Medrano, Business Liaison arlenem@cctexas.com 361-826-3356 CAPTION: Ordinance pertaining to North Beach designating a 1,423 acre area within the jurisdiction of the City of Corpus Christi Tax Increment Reinvestment Zone (TIRZ) Number 4; setting a maximum City financial participation of $20,000,000 via a scaled contribution for a period not to exceed 20 years; establishing a Board of Directors for the TIRZ; and, establishing a preliminary Project and Financing Plan. SUMMARY: Per Tax Code 311.011(e), this Ordinance and public hearing will designate the reinvestment zone for tax increment financing purposes and create the Board of Directors for the reinvestment zone. Staff has prepared a preliminary reinvestment zone project and financing plan, a copy of which is attached to and incorporated into this ordinance as Exhibit C. A joint workshop between the City Council and Nueces Commissioners Court is scheduled to be held on October 24, 2019. Staff will incorporate feedback from this workshop into the Preliminary Project and Financing Plans. Based on the feedback from Council during the Joint Workshop with the City Council and the Nueces County Commissioners on October 24, 2019 the following changes have been made to the Preliminary Project and Financing Plan for discussion: 1. Reduced Wayfinding from $3 Million to $1 Million 2. Adjusted 5% of North Beach Public Spaces Beautification Program from $735,556 to $587,681 3. Adjusted incentive level for Project Specific Development Agreement to provide different levels of incentives: a. The total reimbursement by the TIRZ #4 will not exceed 20% of the total project cost if a development is at least 20,000 square feet or creating 100 or more new residential units. b. The total reimbursement by the TIRZ #4 will not exceed 10% of the total project cost if a development is at least 5,000 square feet, but less than 20,000 square feet or creating at least 25, but less than 100, new residential units. Ordinance designating a Tax Increment Financing District to be known as Reinvestment Zone Number Four in the area of the City known as North Beach BACKGROUND AND FINDINGS: On April 9, 2019, Nueces County Commissioner Vaughn, as the Chairperson of the North Beach Task Force, provided a report to City Council which included a recommendation to create a tax increment reinvestment zone at North Beach. During this item, Councilman Roy made a motion, seconded by Councilman Garza directing the City Manager to move forward with the creation of a TIRZ at North Beach. • a description of the zone boundaries with sufficient detail to identify the territory within the zone; • a designation of the board of directors for the zone and an indication of the number o f directors of the board; • a provision that the zone will take effect immediately on passage of the ordinance; • an indication of the zone termination date; • a name for the zone as provided under Tax Code Section 311.004(a)(5); • a provision establishing a tax increment fund for the zone; • findings that the improvements within the zone will significantly enhance the value of the taxable property within the zone and will be of general benefit to the city or county; and • a finding that the area meets the criteria for designation of a reinvestment zone under Tax Code Section 311.005. The City would participate at 100% for the first 10 years and at 75% for the following 10 years. At no time will the City’s contributions exceed $20,000,000. The preliminary reinvestment zone financing plan provides that portions of the ad valorem taxes of the City constituting its tax increment are to be deposited into the Tax Increment Fund created by this ordinance, and that ad valorem taxes of the other taxing units constituting their respective tax increments may also be utilized for the purposes described in the preliminary financing plan in accordance with agreement from those other taxing entities to contribute said increment. See below: City’s Ad Valorem Increment Percentage Tax Year(s) 100% 2019 through 2028 75% 2029 through 2038 On July 10, 2019, the Nueces County Commissioners Court passed a Resolution supporting the City in its efforts to establish a TIRZ at North Beach. Based on conversations with the County, staff anticipates 100% participation by the County for the full length of the TIRZ. A draft Interlocal Agreement has been provided to the County and is currently under review in preparation of taking said agreement to the County Commissioner’s Court for consideration. Furthermore, Del Mar College staff are currently preparing a financial policy that will provide a road map for how the college responds to requests for TIRZ participation. This policy is expected to be presented to the Del Mar Board of Regents in October or November 2019. After adoption of a policy, Del Mar College Board and Executive Leadership will be prepared to accept a formal invitation to participate in the TIRZ #4. The North Beach area substantially arrests or impairs the sound growth of the City and has been found to be in state of deferred infrastructure. Tourism and convention business is of extreme importance to the Corpus Christi economy, and the area within the proposed district has tremendous, unrealized potential to support tourist and convention facilities as the area includes some of the biggest tourist attractions in Corpus Christi, including the Texas State Aquarium and the USS Lexington. It is essential that this presently under-developed area be fully developed to encourage tourism to continue in the area. In relation to the two other TIRZ’s in Corpus Christi, TIRZ 2 on the Island and TIRZ 3 Downtown, this proposed TIRZ 4 at North Beach has significantly less property value and has seen little to no development over the past decade. TIRZ 2 (estb. 2000) TIRZ 3 (estb. 2008) TIRZ 4 2019 Net Taxable Value 513,369,642 439,524,182 60,689,500 Estimated City Contribution for life of TIRZ $30,000,000 $12,000,000 $20,000,000 Contributions to the TIRZ will not redirect funding from today’s General Fund. Significant contributions to the TIRZ will only occur if increases to property values occur at North Beach which spurred by new development or enhancements to existing property. The zone is expected to be one of a variety of potential funding sources and programs that will be acting in concert to accomplish a transformed public environment in North Beach. By improving and maintaining public spaces with a high level of service, plus increasing density, the zone and the other programs will encourage the development of new land uses and the redevelopment or rehabilitation of existing uses. The intended result is that North Beach will become a vibrant and economically vital urban waterfront district with a variety of tourist, entertainment, residential, retail, and lodging uses. Board Appointments: The Board members are appointed by the City Council of the City. All members appointed by the Board must meet eligibility requirements, as set forth in the Act. Provided, however, notwithstanding any other provision of this Ordinance, the City Council has the right to appoint at least 10 members of the Board, and the Board may exceed 15 members, if necessary for the City Council to make the 10 appointments. Staff recommends the following board composition: • 9 City Council Members • 1 - 2 Nueces County Representative(s) • 1 Community Member (Must be a resident within the TIRZ) • 1 Texas State Aquarium Appointee • 1 Lexington Appointee ALTERNATIVES: An alternative to designating North Beach a tax increment reinvestment zone would be to use a different economic development tool such as a Public Improvement District (PID) to increase levels of service in this area. FISCAL IMPACT: The fiscal impact of the recommended North Beach TIRZ would be as follows: • Total contributions of $20,000,000 of City’s ad valorem from the increment above the current base value; • Or 20 years of participation at 100% for the first 10 years and at 75% for the following 10 years, whichever comes first. Funding Detail: Fund: N/A Organization/Activity: N/A Mission Element: N/A Project # (CIP Only): N/A Account: N/A RECOMMENDATION: Staff recommends approval of the ordinance pertaining to North Beach designating a 1,423 acre area within the jurisdiction of the City of Corpus Christi Tax Increment Reinvestment Zone (TIRZ) Number 4; setting a maximum City financial participation of $20,000,000 via a scaled contribution for a period not to exceed 20 years; establishing a Board of Directors for the TIRZ; and, establishing a preliminary Project and Financing Plan. LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Page 1 of 6 Ordinance pertaining to North Beach designating a 1,423 acre area within the jurisdiction of the City of Corpus Christi Tax Increment Reinvestment Zone (TIRZ) Number 4; setting a maximum City financial participation of $20,000,000 via a scaled contribution for a period not to exceed 20 years; establishing a Board of Directors for the TIRZ; and, establishing a preliminary Project and Financing Plan. WHEREAS, the Texas Legislature has authorized cities to establish reinvestment zones by its enactment of the Tax Increment Financing Act, Chapter 311, Texas Tax Code (”Act”); WHEREAS, it has been proposed that the City of Corpus Christi should establish a reinvestment zone (“Zone”), as authorized by the Act, within the area of the City as described by metes and bounds in Exhibit A, and depicted by map in Exhibit B, which exhibits are attached to and incorporated into this ordinance; WHEREAS, the City has prepared a preliminary reinvestment zone financing plan, a true and correct copy of which is attached to and incorporated into this ordinance as Exhibit C; WHEREAS, the preliminary reinvestment zone financing plan provides that portions of the ad valorem taxes of the City constituting its tax increment (as described in Section 8 of this ordinance) are to be deposited into the Tax Increment Fund created by this ordinance, and that ad valorem taxes of the other taxing units constituting their respective tax increments may also be utilized for the purposes described in the preliminary financing plan in accordance with agreement from those other taxing entities to contribute said increment; WHEREAS, in compliance with the Act, the City called a public hearing to hear public comment on the creation of the proposed zone and its benefits to the City and the property in the proposed zone; WHEREAS, in compliance with the Act, notice of the public hearing was published in the Corpus Christi Caller-Times, a daily newspaper having general circulation in the City, the publication date being not later than seven days prior to the date of the public hearing; WHEREAS, the hearing was convened at the time and place mentioned in the published notice, to-wit, on the 29th day of October, 2019, at the Regular Meeting of the City Council commencing at 11:30 a.m., at the City Hall of the City, which hearing was conducted and then closed; WHEREAS, the City, at the hearing, invited and permitted any interested person to speak for or against the creation of the zone, its boundaries, and the concept of tax increment financing; WHEREAS, all owners of property located within the proposed zone were given a reasonable opportunity to protest the inclusion of the property in the proposed zone; Page 2 of 6 WHEREAS, City Council considered all information provided to it relevant to the merits of creating the zone, consistent with the criteria in Chapter 311; and WHEREAS, all requirements of the Act have been met. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this Ordinance are found and declared to be true and correct. SECTION 2. The City Council, after conducting the above-described public hearing and having heard all evidence and testimony, makes the following findings and determinations based on the evidence and testimony presented to it: (a) That the Zone is a contiguous geographic area located wholly within the corporate limits of the City. (b) That the area substantially arrests or impairs the sound growth of the City, retards the provision of multi-family housing accommodations, constitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare in its present condition and use because of: (1) Unsafe conditions, including deteriorating streets and defective and inadequate sidewalks throughout the proposed zone, pose a threat to visitors, residents, and customers of businesses. The lack of appropriate curb cuts and ramps limit the mobility of persons with disabilities. (2) Non-existent, inadequately sized, or deteriorated utility infrastructure, including wastewater and fiber optics, substantially arrests or impairs the sound growth of the City and retards the development of multi-family housing and other business or visitor facilities. The existing utility infrastructure in its current condition constitutes an economic or social liability and is a hazard to the public health and welfare in the proposed zone. (3) The inadequate street layout, lack of adequate improved parking, and limited way-finding and other signage hampers movement of vehicles and pedestrians throughout the proposed zone. This problem will be exacerbated by the relocation of the Harbor Bridge in the coming years. While the new bridge provides additional potential for growth within the proposed zone, such potential may not be realized due to this problematic infrastructure. (4) Deteriorating public spaces with inadequate pedestrian scale lighting, limited irrigation systems and inadequate access to water lines for drinking fountains and hose bibs throughout the proposed zone limit the types of Page 3 of 6 landscaping and public amenities that can be installed within the proposed zone. (5) Lack of water and electrical meters in parks limits the activities within the available public spaces. (6) Unsafe conditions due to the lack of security cameras and other safety programs pose a threat to visitors and residents. (7) Inadequate drainage facilities substantially arrest or impair the sound growth of the City and retard the development of multi-family housing and other business or visitor facilities in the proposed zone, including potential hotel developments. (c) That tourism and convention business is of extreme importance to the Corpus Christi economy, and the area within the proposed district has tremendous, unrealized potential to support tourist and convention facilities as the area includes some of the biggest tourist attractions in Corpus Christi, including the Texas State Aquarium and the USS Lexington, and it is essential that this presently under-developed area be fully developed to encourage tourism to continue in the area. (d) That no more than 30 percent of the property in the proposed reinvestment zone, excluding property that is publicly owned, is used for residential purposes. (e) That the total appraised value of taxable real property in the proposed reinvestment zone and in existing reinvestment zones within the City according to the most recent appraisal rolls for the City, does not exceed 25 percent of the current total appraised value of taxable real property in the City and in the industrial districts created by the City. (f) That the improvements to be implemented in the proposed zone will significantly enhance the value of all taxable real property in the proposed zone and will be of general benefit to the City. SECTION 3. The City Council designates as a reinvestment zone the area described by the metes and bounds in Exhibit A and depicted by map in Exhibit B to promote development and redevelopment of the area, which development or redevelopment the City Council determines will not occur solely through private investment in the reasonably foreseeable future. The reinvestment zone shall be identified as “Reinvestment Zone Number Four, City of Corpus Christi, Texas” (“Zone” or “Reinvestment Zone”). SECTION 4. That a board of directors for the Zone (the “Board”) is established, which consists of up to 15 members. The Board shall be appointed as follows: (a) Under Section 311 .009(a), Tax Code, the respective governing bodies of each taxing unit other than the City that levies taxes within the Zone each may Page 4 of 6 appoint one member of the Board if the taxing unit has approved the payment of all or part of the tax increment produced by the unit into the tax increment fund for the zone. Each governing body may waive its right to appoint a director and is deemed to have waived the right if it has not made the appointment within 30 days of receiving written notice of its right to appoint. (b) The remaining members of the Board are appointed by the City Council of the City. All members appointed by the Board must meet eligibility requirements, as set forth in the Act. Provided, however, notwithstanding any other provision of this Ordinance, the City Council has the right to appoint at least 10 members of the Board, and the Board may exceed 15 members, if necessary for the City Council to make the 10 appointments. (b) Terms of Board members are two years. Terms must be staggered, with the first term of 8 City Council appointees being for one year. Officers must be appointed as provided in the Act. (c) The Board shall make recommendations to the City Council concerning the administration of the Zone. The Board shall prepare and adopt a project plan and reinvestment zone financing plan for the Zone, and submit the plans to the City Council for its approval under Section 311.011, Texas Tax Code. (d) The City Council specifically authorizes the Board to approve agreements that the Board considers necessary or convenient to implement the project plan and reinvestment zone financing plan and achieve their purposes. Any amendments to the project plan and/or reinvestment zone financing plan must be approved by ordinance of City Council. SECTION 5. The Zone shall take effect immediately upon the passage of this Ordinance. Termination of the Zone occurs on December 31, 2039, or at an earlier or later time designated by subsequent ordinance of the City Council or at the time as all project costs, and all tax increment bonds and interest on any bonds, have been paid in full. SECTION 6. The Tax Increment Base for the Zone, which is the total appraised value of all taxable real property located in the Zone for the year in which the Zone is designated, is shown in Exhibit D, which is attached to and incorporated into this ordinance. SECTION 7. There is established a Tax Increment Fund for the Zone, which may be divided into the accounts and sub-accounts, as deemed necessary or convenient under generally accepted accounting principles for government, into which all tax increments, less any amounts not required to be paid into the Tax Increment Fund under the Act, are to be deposited. The Tax Increment Fund may be utilized only for purposes permitted by the Act and managed under the Act. SECTION 8. The amount of tax increment that the City contributes to the Tax Increment Fund for each year is described in the table below. If at any time, the total amount of Page 5 of 6 increment contributed to the Tax Increment Fund by the City reaches or exceeds $20 million, then the City shall immediately cease contributions of increment to the Tax Increment Fund. Increment Percentage Tax Year(s) 100% 2019 through 2028 75% 2029 through 2038 SECTION 9. The City Council finds that the creation of the Zone and the expenditure of moneys on deposit in the Tax Increment Fund, which are necessary or convenient to the creation of the Zone or to the implementation of the project plan for the Zone, constitute a program to promote local economic development and to stimulate business and commercial activity in the City. SECTION 10. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance be given full force and effect for its purpose. Page 6 of 6 PASSED AND APPROVED, this the _____ th day of ___________, ______. ATTEST: __________________________________ _____________________________ Rebecca Huerta Joe McComb City Secretary Mayor That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, _____, by the following vote: 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 _______________, ________, by the following vote: Joe McComb ____________ Michael Hunter ____________ Roland Barrera ____________ Ben Molina ____________ Rudy Garza ____________ Everett Roy ____________ Paulette M. Guajardo ____________ Greg Smith ____________ Gil Hernandez ____________ Exhibit BSketch to Accompany November 1, 2019 PRELIMINARY PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN Tax Increment Reinvestment Zone #4 NORTH BEACH, CORPUS CHRISTI, TEXAS November 2019 Exhibit C November 1, 2019 TABLE OF CONTENTS TABLE OF CONTENTS ..................................................................................................... INTRODUCTION ............................................................................................................ 1 Criteria for Zone Creation 1 Vision for North Beach 2 Anticipated Zone Role in North Beach Improvements 2 PROJECT PLAN …………………………………………………………………………………………………………… 3 Existing Uses and Conditions / Boundaries §311.011(b)(1) 3 Exhibit A ‐ Zone Boundaries and Land Use 3 Exhibit B.1 ‐ Existing Land Use 4 Exhibit B.2 ‐ Existing Property Designation 5 Exhibit B.3 ‐ Existing City Limits, City Owned, Port Owned & Proposed TIRZ Parcels 6 Exhibit C ‐ Legal Description of the Zone 7 Municipal Ordinances §311.011(b)(2) 10 City Planned Improvements (Non‐Project Costs) §311.011(b)(3) 11 Relocation §311.011(b)(4) 12 REINVESTMENT ZONE FINANCING PLAN ....................................................................... 13 Estimated Project Cost Description §311.011(c)(1) and Kind, Number, and Location of TIRZ Improvements §311.011(c)(2) 13 Economic Feasibility Study §311.011(c)(3) 16 Estimate of Bonded Indebtedness §311.011(c)(4) 16 Timing of Incurring Costs or Monetary Obligation §311.011(c)(5) 16 Method of Financing and Sources of Revenue §311.011(c)(6) 16 Sources of Revenue 16 Current Appraised Value §311.011(c)(7) 19 Estimated Captured Appraised Value §311.011(c)(8) 19 Duration of the Zone §311.011(c)(9) 19 Appendices ................................................................................................................... 20 Appendix A – Economic Feasibility Study §311.011(c)(3) November 1, 2019 1 | P a g e INTRODUCTION The City of Corpus Christi is proposing to create a Tax Increment Reinvestment Zone or TIRZ (hereafter referred to as the “Zone”) over a portion of the city that includes the city’s North Beach area along the Bayfront from the Rincon Channel at the north end, south to the USS Lexington, adjacent to the Texas State Aquarium, and west to the Port of Corpus Christi. Criteria for Zone Creation The area within the Zone qualifies for a TIRZ because it suffers from economic stagnation, inadequate infrastructure, and deteriorating properties. Without intervention by the public sector, private market forces will not be sufficient to generate significant development and redevelopment. Conditions meeting the criteria of the Tax Code of the State of Texas, Chapter 311, Section 005 for reinvestment zone designation include: • A substantial number of substandard, slum, deteriorated, or deteriorating structures; • The predominance of defective or inadequate sidewalk or street layout; • Unsanitary or unsafe conditions; • The deterioration of site or other improvements; and • Conditions that endanger life or property by fire or other cause. According to the language of Chapter 311, these conditions must “substantially arrest or impair the sound growth of the municipality or county creating the zone, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use.” The existing conditions in the North Beach area of Corpus Christi hamper investment in residential, retail and hospitality-related property improvements, as outlined in the portions of the Downtown Area Development Plan (DAPD) Residential Market Analysis relevant to North Beach. The conditions outlined above will not be overcome or corrected without significant intervention and assistance from the public sector, therefore satisfying the general criteria for creation of the Zone. November 1, 2019 2 | P a g e Vision for North Beach Over 800,000 people visit the Texas State Aquarium and USS Lexington on North Beach each year. Each of those visitors drives through areas with frequent flooding and blighted as well as vacant properties. Corpus Christi’s first impression to over 800,000 people each year is largely a pathway of deferred maintenance, disrepair, and unimproved properties on the way to the beautifully maintained and exciting Texas State Aquarium and USS Lexington. In recent years, the new Harbor Bridge construction has changed the entrance and exit ramps to and from North Beach. These changes will have an enormous impact on access to and from North Beach and its ability to remain the most visited location in all of the Coastal Bend area. The completion of the Harbor Bridge, and demolition of the old bridge, will spur new opportunities for North Beach revitalization. The proposed Zone can directly aid in the realization of this vision while addressing the deficiencies and challenges outlined above. The North Beach Area should have very well maintained infrastructure and public spaces including medians, right of ways, beaches and parks. The North Beach TIRZ could participate in contributing to a high level of proactive maintenance ensuring a clean residential, commercial and tourist community. Anticipated Zone Role in North Beach Improvements The DAPD Analysis of Residential Market Potential, the 2011 North Beach Development Plan and the 2018 North Beach Redevelopment Area Specific Plan indicate the nature of the intervention and assistance needed to spur economic growth in different areas of the Zone. Flooding, vacant properties, the aging of existing development, inadequate public infrastructure and facilities together depress the viability of new development and redevelopment in North Beach. However, continued investment by the Texas State Aquarium, changes brought by the new Harbor Bridge, new multi-family construction, new single-family homes, and the City’s commitment to solving flooding issues and to make public amenity improvements are a positive indicator for North Beach. The primary functions of the zone will be to support: • Infrastructure Projects • Maintenance Projects • Development Incentives • Administration of the Zone The zone is expected to be one of a variety of planned funding sources and programs that will be acting in concert to accomplish a transformed public environment in North Beach. By improving and maintaining public spaces with a high level of service, plus increasing density through parking structure, the zone and the other projects will encourage the development of new land uses and the redevelopment or rehabilitation of existing uses. The intended result is that North Beach will become a vibrant and economically vibrant urban waterfront district with a variety of tourist, entertainment, residential, retail, and lodging uses, sending a strong first impression to nearly one million annual visitors to Corpus Christi. November 1, 2019 3 | P a g e PROJECT PLAN Existing Uses and Conditions / Boundaries §311.011(b)(1) The Zone includes approximately 1,423 acres (454.5 Acres of Land; 968.3 Acres of Water) wholly within the City of Corpus Christi. Its boundaries encompass all of the North Beach area east of the Port of Corpus Christi land, as shown in Exhibit A. A variety of land uses, shown in maps in Exhibit B and described generally below, are present within the proposed TIRZ. A legal description of the Zone is given in Exhibit C. The Texas State Aquarium and the USS Lexington, in the southern area of North Beach, draw more than 800,000 tourists and visitors annually, combined. Removing the Burleson exit leaves only one northbound exit from the new Harbor Bridge, impacting accessibility to these two heavily visited attractions. To the north, the zone transitions to an area of tourist retail, restaurants, hotels, vacant buildings and unimproved land. The beach runs along the eastern portion of the zone. Further north along the beach are multi-story condominiums, city owned Surfside Park, a small number of single-family homes, and a popular city park, Dolphin Park. If funding is determined to be appropriate and TIRZ and City Council choose to fund them, the off shore area allows for the potential inclusion of breakwater barriers. Central North Beach has a linear right of way, formerly a rail easement, owned by the City of Corpus Christi. Timon and Surfside Boulevards run along its edges, acting as a main thoroughfare through North Beach. This right of way is the location of a proposed drainage solution, a canal to mitigate flooding. This North Beach drainage solution could potentially improve stormwater flow on the peninsula. Residents in the northwest portion of North Beach often experience difficulty making the turnaround at the north end of North Beach under the causeway due to flooding. The new Harbor Bridge, TxDOT and the Port of Corpus Christi border the zone to the west. Exhibit A ‐ Zone Boundaries November 1, 2019 4 | P a g e Exhibit B.1: Existing Uses Throughout the Zone November 1, 2019 5 | P a g e Exhibit B.2 Criteria for the Zone November 1, 2019 6 | P a g e Exhibit B.3 Parcels November 1, 2019 7 | P a g e Exhibit C ‐ Legal Description of the Zone November 1, 2019 8 | P a g e November 1, 2019 9 | P a g e November 1, 2019 10 | P a g e Municipal Ordinances §311.011(b)(2) The City is not contemplating any specific changes to municipal ordinances as part of any projects to be undertaken by the Zone. November 1, 2019 11 | P a g e City Planned Improvements (Non‐Project Costs) §311.011(b)(3) It is expected that the City or Corpus Christi, Nueces County, and other public agencies will participate in the rehabilitation of existing and development of new public facilities and infrastructure within the Zone. In addition, various nonprofit organizations, private citizens and developers may also consider efforts to remediate environmental and safety deficiencies on existing private properties. The City of Corpus Christi has identified about $11,882,989 million in projects planned, or just recently completed, for locations partly or wholly within the Zone intended to rehabilitate and improve existing public facilities and infrastructure. TIRZ funds may be used to assist these projects; however, the bulk of funding is anticipated to come from other sources. The table below lists some of these projects. Note: Amounts may not add perfectly due to rounding Current City Planned Improvements (Non‐Project Costs) Project Source Status Projected Cost Gas US 181 at Burleson Due to conflicts with the new bridge construction there will be 860 feet of 6” steel gas line replacement located in the Burleson St. and US181 intersection. Rev Bond Complete $557,788 Breakwater Ave.. at W Causeway Blvd. Due to conflicts with the new bridge construction there will be 425 feet of 2” steel gas line replacement located in the East Causeway Blvd. and Plum St. area. Rev Bond Complete $202,883 Streets North Beach Area Road Improvements & Area Beautification Includes pavement restoration to North Shoreline Boulevard, new wastewater and water lines on North Shoreline Boulevard, and cleaning existing stormwater and wastewater pipes and manholes on Breakwater Avenue and Coastal Avenue. Bond 2012 Streets Storm Water Wastewater Water Substantially Complete $801,500 North Beach Breakwater Plaza, North Shoreline Repair and Enhancement Includes new curb and gutter, sidewalks, ADA ramps, markings, signage, seating, on-street parking enhancements and illumination improvements to North Shoreline Boulevard. Improvements also include a paved surface to Breakwater Plaza and cleaning existing stormwater pipes and manholes on North Shoreline Boulevard. Bond 2012 Substantially Complete $1,623,900 Beach Avenue (E. Causeway Blvd. to Dead End at Gulfbreeze Blvd.) Reconstruction of existing 2-lane roadway with new pavement, curb & gutter, sidewalks, ADA compliant curb ramps, signage, pavement markings and illumination. Includes bike mobility improvements per the adopted MPO bicycle mobility plan and approved in North Beach Area Plan. Bond 2018 In planning phase $1,000,000 N. Beach Area Primary Access (Beach & Timon/Surfside Intersection) Design and construction of a new curved access road from E. Causeway Blvd. onto Timon Blvd. with a new traffic circle at intersection of Timon/Surfside and Beach roads. Provides a new Bond 2018 In planning phase $1,250,000 November 1, 2019 12 | P a g e Relocation §311.011(b)(4) No relocation of existing residents is anticipated to be required as a result of the Zone’s projects. route for the single access road into North Beach from the new Harbor Bridge. Traffic circle connects Timon/Surfside and Beach and converts Beach Avenue to one-way from Surfside to E. Causeway Blvd. New Traffic circle also allows development of new gateway feature for the entry into North Beach approved in the North Beach Area Plan. N. Beach Gulfspray Ave. Pedestrian/Bike Access (Beach Access to E. Causeway Blvd.) Pedestrian and bicycle infrastructure improvements to create a new train for improved access from Harbor Bridge and the beach approved in the North Beach Area Plan. Bond 2018 In planning phase $300,000 N. Beach Coastal Protection (Breakwater Barrier) Preliminary engineering and permitting with USACE, GLO, Port of Corpus Christi and other agencies for the design and construction of new breakwater barriers to mitigate beach erosion and coastal flooding as approved in the North Beach Area Plan. Bond 2018 In planning phase $250,000 Water US 181-Beach Ave to Elm St Due to conflicts with the new bridge construction there will be 3000 feet of 12” waterline replacement, 600 feet of 16” waterline replacement and 800 feet of 6” waterline replacement to maintain water quality. The work is concentrated on the east side of US181 between Reef Ave. and Burleson St. Rev Bond 90% complete by TxDOT $3,715,322 Breakwater- W. Causeway Blvd Due to conflicts with the new bridge construction there will be 500 feet of 12” waterline replacement to maintain water quality. The work is located on Breakwater Ave. between Avenue F and East Causeway Blvd. Rev Bond 90% complete by TxDOT $1,021,191 Wastewater Due to conflicts with the new bridge construction there will be 500 feet of 4” wastewater force main replacement and abandonment of a total of 1000 feet of 6” and 8” gravity sewer main. This work is located west side of the existing US181 between Burleson St. and Avenue F. US 181 at Plum St. Rev Bond 90% complete by TxDOT $201,649 US 181 at E Walnut St Rev Bond 90% complete by TxDOT $446,815 Burleson St from US 181 SBFR to Seagull Rev Bond 90% complete by TxDOT $411,941 Parks and Recreation North Beach Historic Plaza Placement and installation of a series of historical panels in North Beach plaza currently being constructed as part of Bond 2012. Hotel Occupancy Tax Dec 2019 $100,000 Total $11,882,989 November 1, 2019 13 | P a g e REINVESTMENT ZONE FINANCING PLAN Estimated Project Cost Description §311.011(c)(1) and Kind, Number, and Location of TIRZ Improvements §311.011(c)(2) The Zone is anticipated to engage in projects that will support development and economic activity as well as contribute to the image and attractiveness of North Beach Corpus Christi on a local, regional, and national level. In addition, the Zone will pay the costs of Zone creation and ongoing administration. The following are project cost estimates and should not be construed as definitive costs for the listed projects (not listed in priority order). 1. INFRASTRUCTURE PROJECTS: $14,665,943 A. Wayfinding Infrastructure – The Zone may participate in proposed construction of gateway features with wayfinding throughout North Beach. It may also build multi-use paths to major tourists destinations. B. Park Improvements – The Zone may contribute to enhancements to Dolphin Park, Surfside Park, and Kiwanis and construct a North Beach birding park (Eco Park). C. Demolition of Blighted Structures – Many older vacant or underutilized buildings within the Zone are not economically feasible to reuse because they contain environmentally undesirable or unsafe elements that present a public safety hazard. The Zone may provide assistance to property owners and developers who must remediate or demolish such structures in order to develop or redevelop. D. Public Safety – With the purpose of increasing safety and security within the Zone, the Zone will provide support for security cameras and associated costs or other one-time security equipment and system devices. E. Drainage- The Zone may contribute financially to addressing infrastructure improvements that would reduce tidal and stormwater related flooding. F. Residential Streets- In November 2016, the voters approved a Charter Revision to Article VIII. Taxation and Bonds, Section 1. Taxation of the City’s Charter which authorized the City Council to levy, assess and collect a property tax not to exceed six cents per $100 valuation for residential street reconstruction to be gradually implemented at a rate not to exceed two cents per $100 valuation per year (i.e. 2+2+2 = 6 cents). The City Council exercised that authority in FY 2018 and in FY 2019. The additional four cents and potential additional two cents must be used for residential streets as approved by the residents of Corpus Christi on November 8, 2016. City Charter Art. VIII, Sec. 1(c): (c) A dedicated fund to be used solely for residential street reconstruction is established, and the city council is authorized each year to levy, assess and collect a property tax not to exceed six cents ($0.06) per one hundred dollars ($100.00) of assessed value for the purpose of residential street November 1, 2019 14 | P a g e reconstruction to be deposited in such fund. Said taxes shall be used solely for the purpose of residential street reconstruction, including associated architectural, engineering and utility costs, and shall be implemented gradually at a rate not to exceed two cents ($0.02) per one hundred dollars ($100.00) of assessed value per year. For the purposes of this provision, the term "reconstruction" is defined as removing all or a significant portion of the pavement material and replacing it with new or recycled materials. The dedicated fund established by this subsection (c) may not be used for payment of debt service. 2. MAINTENANCE PROJECTS: $1,587,681 A. North Beach Public Spaces Beautification & Revitalization Programs & Services - The Zone may contribute 5% of the total incremental ad valorem taxes collected per year in the Zone to beautification projects including the creation of or enhancements to common areas, roadway and median streetscapes, pedestrian landscapes, beach renourishment and beautification, wayfinding signage, lighting, public facilities and any services relating to such program. 3. INCENTIVES: $13,250,000 All Development Incentives are approved at the discretion of the TIRZ Board. A. Project Specific Development Agreement- In situations where higher development costs create a financing gap, TIRZ #4 can provide assistance to property owners or developers through a Development Agreement for reimbursement of net ad valorem new tax increment on new developments, including mixed-use developments. A pro-forma is required to qualify for up to 75% of the qualifying tax increment for 10 years, unless the gap suggests that additional time is required. • The total reimbursement by the TIRZ #4 will not exceed 20% of the total project cost if a development is at least 20,000 square feet or creating 100 or more new residential units. • The total reimbursement by the TIRZ #4 will not exceed 10% of the total project cost if a development is at least 5,000 square feet but less than 20,000 square feet or creating at least 25 but less than 100 new residential units. If further gap exists, staff will undertake additional third-party review to justify any additional reimbursement up to 95% of the qualifying tax increment for 10 years, unless the gap suggests that additional time is required based on the “but, for” principle. The qualifying cost elements for this Project Specific Development Agreement include those listed in the paragraph above and also: • Environmental Remediation/Code Compliance • Historic Preservation • Structured Parking, including availability for public parking • Urban Design/Landscaping • Public Improvements/Utilities, including drainage To incent developers to build more than one project on North Beach, the TIRZ Board will consider reimbursement of net ad valorem new tax increment on all of the developer ’s properties within the TIRZ boundary. November 1, 2019 15 | P a g e B. North Beach Property Improvement Program – This grant will support and encourage private investment in the existing structures and facilities already built on North Beach. The Zone will match approved property improvements funded by the property owners. The Zone will consider a match of 50/50 (Property Owner / TIRZ #4), depending upon the extent to which the scope of the project meets the priorities of the Zone. C. North Beach Living Initiative– In order to stimulate the development of North Beach and quickly build residential density in the area, the Zone will establish a grant that will provide a $10,000 per dwelling unit reimbursement for multi-family developments of over 10 units. Any applicant awarded a grant must obtain a Building Permit for the entirety of such project(s) within six (6) months of award of such grant. If a Building Permit is not obtained within the six- month time period, then the grant will be forfeited. 4. ADMINISTRATIVE COSTS: $2,250,000 A. Creation – ($250,000) Zone may reimburse the City for City incurred expenses related to the costs of creating the Zone. B. Administration – ($2,000,000) Zone funds may pay for the City’s costs of ongoing administration of the Zone including but not limited to accounting, legal services, document production and maintenance, and other administrative costs. These costs are estimated at $100,000 per year for the 20‐year life of the Zone. Project Costs are Estimated as Follows: Infrastructure, Maintenance and Incentives $29,503,624 Administrative Costs $2,250,000 TOTAL $ 31,753,624 Economic Feasibility Study §311.011(c)(3) Several market and economic feasibility studies for the Zone have been completed. The MJB Consulting “Retail Market Analysis and Strategy” and the Zimmerman/Volk Associates “Office, Retail, and Hotel Market Assessment” are provided under separate cover. In addition, a feasibility analysis by Landmark Renewal was completed in August 2019, which is included in Appendix A to this Plan. November 1, 2019 16 | P a g e Estimate of Bonded Indebtedness §311.011(c)(4) It is not initially anticipated that the Zone will issue bonded debt; instead the Zone’s projects will be funded on a pay‐as‐you‐go basis or utilize other financing methods. However, if the annual Zone revenue and available non‐bonded debt financing are insufficient to address the needs of the Zone, the Zone may issue bonded debt commensurate with the specific project costs under consideration and anticipated annual Zone revenues to support debt service payments. Timing of Incurring Costs or Monetary Obligation §311.011(c)(5) Costs will be incurred over the life of the Zone based on its Board of Directors’ identification of priority activities and projects, opportunities for implementation, and available revenues to sustain a pay‐as-you‐ go project expenditure approach or a bonded debt issuance. Method of Financing and Sources of Revenue §311.011(c)(6) Methods of financing. The Zone will initially take a pay‐as‐you‐go approach to financing projects that could utilize the following methods: • Cash funds generated from existing property value increment, • Short term anticipation notes or other debt issued by private financial institutions based on projected property tax increment to be generated from taxable development under construction at the time of debt issuance, and • Developer cash reimbursement agreements where the revenues from the Developer’s property tax increment compensate a developer for fronting eligible expenditures in a specific taxable project after the project is completed. If future Zone revenues to support debt service payments are anticipated, the Zone may also issue bonded debt, the term of which will not extend past the expected life of the Zone. Sources of revenue. The primary source of revenue for the Zone will be funds from the contributed property tax collections of the City of Corpus Christi and Nueces County on the taxable property value increment within the Zone. It is currently projected that the County will agree to participate in funding the Zone with 100% of the incremental property taxes collected over the life of the Zone and that the City will participate in the funding of the Zone based on the table below. If City reaches $20 million, then the City shall cease contributions to the increment. It is anticipated that Del Mar College will be a participant in the TIRZ. TABLE- TIRZ Contributions Taxing Entity Maximum Dollar Contribution Increment Percentage Tax Year(s) City of Corpus Christi $20,000,000 100% 2019 through 2028 75% 2029 through 2038 Nueces County None 100% 2019 through 2038 November 1, 2019 17 | P a g e The assessed value base year for the City of Corpus Christi and Nueces County is 2019. The projection of incremental property tax revenue contributed to the Zone is as follows: Certified Appraised Values Base value is from 2019 (January 1, 2019) taxable appraised value. Values in future years are based on current development projections. Net Taxable Values from the Certified Roll 2019 (*with estimated development) According to these projections, 63% of the tax increment revenues will come from the City of Corpus Christi and 37% will come from Nueces County. Revenue estimates will be monitored and adjusted annually. The 2019 tax rate applicable to the reinvestment zone is $0.957852 (or approximately $0.96) per $100 of assessed valuation, broken down as follows: City of Corpus Christi 0.646264 Nueces County 0.311588 Total 0.957852 Applying the 2019 tax rate of $0.957852 per $100 assessed valuation to the 2019 total certified roll taxable value of properties within the zone, property taxes of $581,316 are generated. This amount produced from 3% Fiscal Year Tax Year Values City County Total City Scaled County County 100% City Scaled FY 20 2019 60,689,500 392,214 189,101 581,316 FY 21 2020 62,510,185 403,981 194,774 598,755 11,766 5,673 17,439 FY 22 2021 64,385,491 416,100 200,617 616,718 23,886 11,516 35,402 FY 23 2022* 140,317,055 906,819 437,211 1,344,030 514,604 248,110 762,714 FY 24 2023 144,526,567 934,023 450,327 1,384,351 541,809 261,226 803,035 FY 25 2024* 187,362,364 1,210,856 583,799 1,794,654 818,641 394,697 1,213,339 FY 26 2025 200,708,235 1,297,105 625,383 1,922,488 904,891 436,282 1,341,172 FY 27 2026 214,686,232 1,387,440 668,937 2,056,376 995,225 479,835 1,475,061 FY 28 2027 229,322,271 1,482,027 714,541 2,196,568 1,089,813 525,439 1,615,252 FY 29 2028 244,643,256 1,581,041 762,279 2,343,320 1,188,827 573,178 1,762,005 FY 30 2029 260,677,109 1,684,662 812,239 2,496,901 969,336 623,137 1,592,473 FY 31 2030 277,452,814 1,793,078 864,510 2,657,587 1,050,647 675,408 1,726,056 FY 32 2031 295,000,453 1,906,482 919,186 2,825,668 1,135,701 730,085 1,865,785 FY 33 2032 313,351,242 2,025,076 976,365 3,001,441 1,224,646 787,264 2,011,910 FY 34 2033 332,537,578 2,149,071 1,036,147 3,185,218 1,317,642 847,046 2,164,688 FY 35 2034 352,593,078 2,278,682 1,098,638 3,377,320 1,414,851 909,537 2,324,387 FY 36 2035 373,552,625 2,414,136 1,163,945 3,578,081 1,516,441 974,844 2,491,285 FY 37 2036 395,452,410 2,555,667 1,232,182 3,787,849 1,622,589 1,043,081 2,665,670 FY 38 2037 418,329,985 2,703,516 1,303,466 4,006,982 1,733,476 1,114,365 2,847,841 FY 39 2038 442,224,308 2,857,936 1,377,918 4,235,854 1,849,292 1,188,817 3,038,108 32,379,912 15,611,564 47,991,477 19,924,084 11,829,540 31,753,624 TOTALS Year Tax Revenue Tax Increment Total November 1, 2019 18 | P a g e the tax increment base (or the “frozen base”) will continue to be allocated and paid to the taxing entities levying taxes in the zone area, based on their respective tax rates. Zone property tax contributions from the participating tax jurisdictions could be supplemented with other sources of revenue as available. These could include but are not limited to: • Grants from other local, state, and federal agencies; • Grants from private entities such as foundations; and • Joint implementation and funding agreements with other public agencies or private entities such as civic associations for specific projects. Current Appraised Value §311.011(c)(7) According to the Nueces County Appraisal District, the 2019 certified roll total assessed value for the Zone as of July 26, 2019 is $64,724,132. Due to differences in policies regarding exemptions and tax abatements, the net taxable values differ among the two jurisdictions. According to the Nueces County Appraisal District, the 2019 certified roll net taxable value for the Zone as of July 26, 2019 is $60,689,500 for the City of Corpus Christi and $59,657,026 for Nueces County. Estimated Captured Appraised Value §311.011(c)(8) The table above provides the projected schedule of taxable value increment captured by the Zone over its proposed 20‐year duration. There is a column shown for each entity. Captured value projections assume a 3.0% annual value appreciation rate for existing development. In year 2022, the development currently underway on North Beach, LaVista Pointe Apartme nts, will be complete with an estimated future property value increase of $24 million. Additionally, there are other developments planned throughout the zone with a combined projected increase in value of $105 million. Based on calculations in the TIRZ # 4 Feasibility Analysis, beginning in 2024 and continuing throughout the remaining life of the Zone, 22 apartment units valued at $150,000 each and 12 condominium or townhome units valued at $300,000 each, are projected to be added to the tax rolls each year. The per unit amounts are adjusted for inflation at 3% per year. The tax increment is the amount of property taxes produced yearly during the term of the reinvestment zone on the captured appraised value. This value is the appraised value of taxable real property within the reinvestment zone which exceeds the tax increment base. The table above shows estimated TIRZ revenues over the 20 life of the zone to be as follows: City of Corpus Christi: $19,924,084 Nueces County: $11,829,540 Total $31,753,624 Duration of the Zone §311.011(c)(9) The proposed duration of the Zone is twenty years from the time of its creation. Assuming creation in 2019, the Zone would expire after 2038. November 1, 2019 19 | P a g e City Council may, by ordinance, extend the length of the TIRZ to allow additional time to expend funds. Appendices Appendix A – Economic Feasibility Study §311.011(c)(3) Feasibility Analysis Tax Increment Reinvestment Zone # 4 North Beach Area City of Corpus Christi, Texas August 2019 Jim Johnson, PhD Landmark Renewal 20 | P a g e A p p e n d i x A -E c o n o m i c F e a s i b i l i t y A n a l y s i s I. Introduction The North Beach area of Corpus Christi, Texas, already a leading tourist destination with 800,000 visitors annually, is primed for accelerated redevelopment upon completion of the new Harbor Bridge and demolition of the old bridge. A number of planning processes have focused on the area, producing a wealth of reports including: • North Beach Development Plan (November 2011) - NBDP • Zimmerman Volk Associates: Residential Market Potential (October 2014) - ZVA • North Beach Redevelopment Area Specific Plan (February 2018) - NBRA • Downtown Area Development Plan, Corpus Christi (March 2018) - DADP In addition, the Market and Economic Feasibility Study Update for TIRZ # 2 (July 2019), contains a detailed residential, retail and hotel development analysis of the Corpus Christi metropolitan statistical area (MSA) applicable in part to North Beach. The feasibility of a tax increment reinvestment zone (TIRZ) depends on whether tax increment stimulated by TIRZ improvements will cover the costs of those improvements, leaving local tax jurisdictions better off at termination of the TIRZ than they would be without a TIRZ. While some new development would occur regardless, establishing the zone provides a revenue source for public improvements that can spur additional and more intensive development than would otherwise occur. The year in which a TIRZ is established becomes its base year, with each succeeding year’s incremental tax revenues pledged to a fund controlled by the zone’s board of directors. Local taxing jurisdictions may contribute up to 100% of their tax increment. TIRZ revenues depend on: • Overall changes in property valuations; • Timing and value of new development; and • Loss of value from demolition of existing improvements. Once the zone has sufficient revenue, infrastructure improvements should coincide with and enable associated private investment (DADP, p. 26). This analysis assumes that TIRZ spending will be based on articulated stakeholder and planning priorities, such as the February 2018 North Beach Redevelopment Initiative Near-Term Projects and Mid- and Long-Term Projects lists. 21 | P a g e A p p e n d i x A -E c o n o m i c F e a s i b i l i t y A n a l y s i s II. TIRZ Revenue Projection City of Corpus Christi is expected to participate at 100% for the first ten years and at 75% for the last ten years. Nueces County is expected to participate with 100% of tax increment for the full length of the TIRZ. Base year taxable values vary slightly between jurisdictions, primarily due to differing property tax exemptions offered. Exemptions on owner-occupied residential property include homestead and the over-65 tax freeze. For purposes of these projections, we assume the effect of these exemptions will be small since most existing and new development will be commercial, including multifamily, that is ineligible for these residential exemptions. The aggregate value of single family residential property tax exemptions changes slowly over time. We assume no effect from commercial property tax abatements that could be offered by participating jurisdictions. The following projections of TIRZ revenue are based on the following assumptions: • 3% annual growth in taxable property valuations • Completion of a $24 million apartment complex, LaVista Pointe, in 2022 • New residential development in North Beach equivalent to 22 new apartment units and 12 new condominium or townhome units per year beginning in 2024 Prudence requires a conservative bias in revenue assumptions so that TIRZ spending can be reasonably planned. There is no assumption of added taxable value from retail/commercial or hotel/hospitality/tourism-related new development, despite a reasonable possibility of such investments. According to ZVA (p. 42), the residential “market is constrained in North Beach due to the additional cost of development incurred by flooding issues.” In the five years since the ZVA report, no multifamily residential development has been completed. The TIRZ revenue forecast assumes that a flooding mitigation solution, such as the proposed canal (NBRI Alternative 2), is devised and implemented by the City of Corpus Christi within the next five years. While drainage improvements are unlikely to erase the additional costs of development in North Beach, it should substantially ease that market constraint, making the ZVA residential projections for North Beach realizable in the future. LaVista Pointe, a 150-unit apartment complex, is planned for completion around 2022. ZVA projects North Beach annual residential absorption over a 10-year period of 44-53 apartment units and 26-31 condominium and townhome units. Taking a middle point of those projections, or 48 apartment units 22 | P a g e A p p e n d i x A -E c o n o m i c F e a s i b i l i t y A n a l y s i s and 28 condo/townhome units, times 10 years, and subtracting the 150 completed apartment units, results in a projection of 330 additional apartment units and 280 new condo/townhome units after 2024. This analysis assumes that tax revenue from these units is, conservatively, spread over a 15-year period beginning in 2024, after LaVista Pointe has likely reached stabilized occupancy. Apartments are estimated at $150,000 per unit and condos and townhomes at $350,000 at the beginning of the 15-year period, with 3% inflation for new construction in each succeeding year. The 2024 per unit values discounted back to 2019 values at 3% per year equal about $129,000 per apartment unit and $300,000 per condo/townhome unit. While the TIRZ revenue forecast involves no additional retail or hotel development, TIRZ infrastructure should make high intensity tourism-oriented development appealing to the private sector. In particular, TIRZ infrastructure, a canal or other drainage solution, and right of way opened up by demolition of old the Harbor Bridge ramps, together should enable the transformative potential of high-density mixed-use development and structured parking near existing tourist attractions and associated parking needs (DADP, p. 87). “Opportunities here could include hotels, other tourism-related uses, and surface parking serving the beach and other visitor destinations.” (DADP, p. 85) III. TIRZ Projects, Costs and Timing The proposed TIRZ project list is derived from the planning documents listed above and stakeholder input. Project costs are estimates derived from similar types of projects, and therefore should not be construed as definitive costs for the listed projects. The TIRZ Project Plan should contain cost estimates in categories of spending rather than for specific projects, which over the 20-year life of the zone may change conceptually and in terms of scope and extent. Among recommendations of the DADP are the following: • Restore street connections where old Harbor Bridge is removed, and provide “convenient, attractive access at Beach Ave. connecting to Surfside and Timon Blvd.” (p. 32) • Build a “new multi-use path extending along Beach Ave. to the Beachwalk, and along Timon and Surfside Blvd. to the Texas State Aquarium ferry dock.” (p. 36) • “Complete North Beach birding park and Timon/Surfside path within 5 years.” (p. 36) • “Create a welcoming Beach Ave. gateway at the new point of entry to North Beach off the Harbor Bridge.” (p. 86) 23 | P a g e A p p e n d i x A -E c o n o m i c F e a s i b i l i t y A n a l y s i s • “A new ‘North Beach Blvd.’ should also be created through the redesign of existing Timon and Surfside Blvd. with street upgrades, a new wide multi-purpose path for pedestrians and bicyclists…and planting the center median with a rich palette of native, coastal plant species.” (p. 86) The North Beach TIRZ should include the following project categories: Roads and wayfinding • Beach Ave. roadway/pedestrian improvements and area beautification • Construction of Traffic Circle at the intersection of Beach Ave. with Surfside Blvd. and Timon Blvd. including gateway feature with wayfinding Parks • Dolphin Park improvements • Surfside Park improvements • Kiwanis Park and Community Center improvements Other infrastructure Demolition of blighted structures Structured parking 24 | P a g e A p p e n d i x A -E c o n o m i c F e a s i b i l i t y A n a l y s i s Cumulative revenue is projected as follows: TIRZ spending could begin as early as 2022 on modest improvements, but assuming a pay-as-you-go structure, major infrastructure spending would have to wait at least until approximately $2.8 million had been accumulated in 2024. A parking structure would have to wait until near the end of the TIRZ lifetime, unless a private developer could be induced to build a garage in a public-private partnership earlier than that. With the opportunity of vacated ROW from the demolished Harbor Bridge ramps, such a partnership is feasible, perhaps in conjunction with an on-street meter parking policy as envisioned by the DADP (p. 28). . Fiscal Year Tax Year Annual Cumulative FY 20 2019 FY 21 2020 17,439 17,439 FY 22 2021 35,402 52,842 FY 23 2022 762,714 815,556 FY 24 2023 803,035 1,618,591 FY 25 2024 1,213,339 2,831,929 FY 26 2025 1,341,172 4,173,102 FY 27 2026 1,475,061 5,648,162 FY 28 2027 1,615,252 7,263,415 FY 29 2028 1,762,005 9,025,419 FY 30 2029 1,592,473 10,617,893 FY 31 2030 1,726,056 12,343,949 FY 32 2031 1,865,785 14,209,734 FY 33 2032 2,011,910 16,221,644 FY 34 2033 2,164,688 18,386,332 FY 35 2034 2,324,387 20,710,720 FY 36 2035 2,491,285 23,202,005 FY 37 2036 2,665,670 25,867,675 FY 38 2037 2,847,841 28,715,516 FY 39 2038 3,038,108 31,753,624 Year Revenue Nueces County As of Certification2019 CERTIFIED TOTALS C03 - CITY OF CORPUS CHRISTI Grand TotalsProperty Count: 410 4:15:57PM7/23/2019 Land Value Homesite:5,421,499 Non Homesite:24,992,584 Ag Market:0 Timber Market:30,414,083Total Land (+)0 Improvement Value Homesite:14,591,818 Non Homesite:19,942,128 Total Improvements (+)34,533,946 Non Real ValueCount Personal Property:0 0 Mineral Property:0 0 Autos:0 0 Total Non Real (+)0 Market Value =64,948,029 ExemptAgNon Exempt 0 0Total Productivity Market: Ag Use:0 0 0(-)Productivity Loss Timber Use:0 0 =Appraised Value 64,948,029 Productivity Loss:00 223,897(-)Homestead Cap =Assessed Value 64,724,132 (-)Total Exemptions Amount (Breakdown on Next Page) 4,034,632 =Net Taxable 60,689,500 Freeze Assessed Taxable Actual Tax Ceiling Count 68,783 0 0.00 0.00 2DP 3,328,046 2,318,209 12,781.56 14,519.92 14OV65 Total 3,396,829 2,318,209 14,519.92 Freeze Taxable (-)12,781.56 16 2,318,209 Tax Rate 0.626264 =58,371,291Freeze Adjusted Taxable APPROXIMATE LEVY = (FREEZE ADJUSTED TAXABLE * (TAX RATE / 100)) + ACTUAL TAX 378,339.94 = 58,371,291 * (0.626264 / 100) + 12,781.56 Tax Increment Finance Value:0 Tax Increment Finance Levy:0.00 Page 1 of 5C03/595028 True Automation, Inc. Exhibit D AGENDA MEMORANDUM City Council Meeting of November 12, 2019 DATE:November 7, 2019 TO:Peter Zanoni, City Manager FROM:Arlene Medrano, Business Liaison arlenem@cctexas.com 361-826-3356 CAPTION: Resolution authorizing execution of an Interlocal Cooperation Agreement with the Nueces County for their 100% increment participation in the North Beach Tax Increment Reinvestment Zone No. 4 for a period ending December 31, 2039. SUMMARY: The City and the County desire to participate in the Reinvestment Zone for the purposes of development in the Reinvestment Zone Area commonly known as North Beach, for their mutual benefit and the benefit of their citizens. BACKGROUND AND FINDINGS: The County agrees to participate in the Reinvestment Zone by contributing into the Tax Increment Fund one hundred percent (100%) of its Tax Increment each year during the term of this Agreement on the Captured Appraised Value of real property within the Reinvestment Zone. The agreement becomes effective as of the date of the final signature, and remains in effect through December 31, 2039, or the date on which the TIRZ #4 Project and Financing Plan has been fully implemented and all Project Costs paid in full. The first payment of Tax Increment by the County under this agreement is based upon the tax increment base for the property within the Zone being determined as of January 1, 2019, and the payment shall be based upon those taxes as levied in the year 2019. The last payment of Tax Increment by the taxing units under this Agreement is for those taxes levied in the year 2038. Authorizing Interlocal Cooperation Agreement with Nueces County for participation in North Beach TIRZ #4 The County shall have the right to appoint one member to the Reinvestment Zone Board of Directors. At their November 6, 2019 Regular Meeting, the Nueces County Commissioners Appointed Commissioner Vaughn to the TIRZ #4 Board and nominated Judge Barbara Canales as an additional member to the TIRZ #4 Board for City Council consideration. The City Council will make board appointments on November 12, 2019 and the first meeting of the TIRZ #4 Board will be on the same day. ALTERNATIVES: Council could choose not to authorize, but then the County would not participate in the TIRZ and the Zone’s ability to complete as projects will be decelerated. FISCAL IMPACT: The Nueces County will participate at a rate of 100% of its tax increment for the full twenty year life of the TIRZ. The projected total contribution from the County is $11,829,540 over twenty years which is an average of $591,477 per year. This amounts to 37% of the total anticipated revenue of $31,753,624 over the life of the reinvestment zone. The City’s twenty year contribution is estimated to be $19,924,084 or 63% of the total increment. Financial Detail: Fund:NA Organization/Activity:NA Mission Element:NA Project # (CIP Only):NA Account:NA RECOMMENDATION: Staff recommends approval of this Interlocal Cooperation Agreement with Nueces County. The participation of Nueces County in the Tax Increment Reinvestment Zone is LIST OF SUPPORTING DOCUMENTS: Resolution Interlocal Cooperation Agreement Resolution authorizing execution of an Interlocal Cooperation Agreement with the Nueces County for their 100% increment participation in the North Beach Tax Increment Reinvestment Zone No. 4 for a period ending December 31, 2039. Be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. That the City Manager or designee is authorized to execute an Interlocal Cooperation Agreement with Nueces County for contribution to the Reinvestment Zone No. 4, City of Corpus Christi, Texas tax increment fund. SECTION 2. This Resolution shall take effect and be in full force immediately after its adoption by the City Council. 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 Page 1 of 6 THE STATE OF TEXAS § COUNTY OF NUECES § INTERLOCAL AGREEMENT This Interlocal Agreement ("Agreement") is made by and between the City of Corpus Christi, Texas ("City"), a municipal corporation and home-rule city of the State of Texas, acting by and through its governing body, the City Council, and Nueces County, Texas ("County"), acting by and through its governing body, the Commissioners Court. This Agreement is made under Chapter 791, Texas Government Code, and Chapter 311, Texas Tax Code, for the participation of the City and the County in Reinvestment Zone Four, City of Corpus Christi, Texas ("Reinvestment Zone"), a reinvestment zone created by the City under Chapter 311, Texas Tax Code. Section 1. DEFINITIONS. (a) As used in this Agreement, the following terms have the meanings set out below: "Agreement" means this agreement between the City and County. "Agreement Term" is defined in Section 4. "Captured Appraised Value" has the meaning ascribed by Chapter 311, Texas Tax Code. "City" is defined in the preamble of this Agreement. "City's Tax Increment Participation" means an amount of the City’s ad valorem tax levy on the Captured Appraised Value, which the City agrees to contribute to the Reinvestment Zone under Sections 3 and 4 of this Agreement. "County" is defined in the preamble of this Agreement. "County Tax Increment Participation" means the amount of ad valorem taxes levied by the County acting through its Commissioners Court on the Captured Appraised Value, which the County agrees to contribute to the Reinvestment Zone under Sections 3 and 4 of this Agreement. "Creation Ordinance" means City Ordinance No. ________, adopted by the City Council on second reading at its __________ meeting. "Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone, which are adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City, as consistent as possible with the preliminary plan described in the Creation Ordinance. Page 2 of 6 "Reinvestment Zone" means Reinvestment Zone Number Four, City of Corpus Christi, Texas, created by the Creation Ordinance, incorporated by reference into this Agreement. "Reinvestment Zone Area" means the area of the City included in the Reinvestment Zone as described in the Creation Ordinance. "Tax Increment" has the meaning ascribed by Chapter 311, Texas Tax Code. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. (b) Terms used in this Agreement and not otherwise defined have the meanings ascribed to them in Chapter 311, Texas Tax Code. Section 2. PURPOSE FOR PARTICIPATING IN THE ZONE. The City and the County desire to participate in the Reinvestment Zone for the purposes of development in the Reinvestment Zone Area under the Plan, for their mutual benefit and the benefit of their citizens. Section 3. OBLIGATIONS OF CITY AND COUNTY. (a)Tax Increment Participation. For and in consideration of the agreements of the parties set forth in this Agreement, the County agrees to participate in the Reinvestment Zone by contributing into the Tax Increment Fund one hundred percent (100%) of its Tax Increment each year during the term of this Agreement on the Captured Appraised Value of real property within the Reinvestment Zone. The City agrees to participate in the Reinvestment Zone by contributing into the Tax Increment Fund a percentage of its Tax Increment each year as laid out in the Creation Ordinance and in the table below. The maximum City contribution to the Tax Increment Fund throughout the term of this Agreement is $20,000,000. Increment Percentage Tax Year(s) 100%2019 through 2028 75%2029 through 2038 The current tax rates of the City and County are subject to change and the respective Tax Increment Participation in this Agreement pledged shall change to the extent of any change in their tax rates. (b) Payment Dates. The City and the County may not be obligated to pay their respective Tax Increment Participation from other City or County taxes or revenues or until the City or County Tax Increment Participation is actually collected. The obligation to pay the City or the County Tax Increment Participation commences as taxes Page 3 of 6 representing the City or the County tax increment are collected for the City or the County and payment shall be due fifteen (15) days after collection. Section 4. TERM OF AGREEMENT. (a) This Agreement becomes effective as of the date of the final signature to this Agreement, and remains in effect through the earlier of (i) December 31, 2039, or (ii) the date on which the Plan has been fully implemented and all Project Costs (as defined in §311.002, Texas Tax Code, and as may be further limited in the Plan), bonds, notes, or other obligations secured by or payable from, in whole or in part, Tax Increment (referred to in this Agreement as "obligations"), and interest on the obligations payable from Tax Increment collected on the Captured Appraised Value of the real property within the Reinvestment Zone have been paid in full. (b) The first payment of Tax Increment by the City under this Agreement is based upon the tax increment base for the property within the Zone being determined as of January 1, 2019, and the payment shall be based upon those taxes as levied in the year 2019. The first payment of Tax Increment by the County under this Agreement is based upon the tax increment base for the property within the Zone being determined as of January 1, 2019, and the payment shall be based upon those taxes as levied in the year 2019. The last payment of Tax Increment by the taxing units under this Agreement is for those taxes levied in the year 2038. (c) If the project to be undertaken under the Plan is not undertaken, is discontinued, or is terminated, all monies remaining in the Tax Increment Fund, after satisfaction of lawful claims, must be paid to the participating taxing units in proportion to their respective share of the total amount of tax increments derived from taxable real property in the Zone that were deposited in the Tax Increment Fund during the Fund’s existence. In no event shall the time required for payment of monies to the participating taxing units exceed ninety (90) days following the termination of the Reinvestment Zone. Section 5. BOARD REPRESENTATIVE. The County shall have the right to appoint one member to the Reinvestment Zone Board of Directors. The County may waive its right to appoint a director and is deemed to have waived the right if it has not made the appointment within 30 days of receiving written notice of its right to appoint by the City Secretary’s Office. Section 6. ANNUAL REPORT. On or before the 90th day following the end of the fiscal year of the City, the governing body of the City shall submit to the chief executive officer of each taxing unit, the County, that levies property taxes on real property in a reinvestment zone created by the City, a report on the status of the zone. The contents of the report must contain all information required under section 311.016 of the Texas Tax Code. Page 4 of 6 Section 7. MISCELLANEOUS. (a) Severability. In the event any term, covenant, or condition in this Agreement is held to be invalid by any court of competent jurisdiction, the invalidity does not affect any other term, covenant, or condition in this Agreement contained, provided that the invalidity does not materially prejudice either the County or the City in their respective rights and obligations contained in the valid terms, covenants, or conditions of this Agreement. (b) Entire Agreement. This Agreement merges the prior negotiations and understandings of the parties to this Agreement and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied), or other terms with respect to the covenants, whether written or verbal, antecedent, or contemporaneous, with the execution of this Agreement. (c) Written Amendment. Unless otherwise provided in this Agreement, this Agreement may be amended only by written instrument duly executed on behalf of each party. (d) Notices. (1) All notices required or permitted under this Agreement must be in writing and must be deemed delivered when actually received or, if earlier, on the third (3 rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the other respective party at the address prescribed below, or at such other address as the receiving party may have prescribed by notice to the sending party. (2) The initial addresses of the parties, which a party may change by giving written notice of its changed address to the other party, are as follows: City Nueces County Peter Zanoni Barbara Canales City Manager Nueces County Judge City of Corpus Christi Nueces County Courthouse 1201 Leopard 901 Leopard P.O. Box 9277 Corpus Christi, Texas 78401 Corpus Christi, Texas 78469-9277 (e) Non-Waiver. Failure of any party to this Agreement to insist on the strict performance of any of the agreements in this Agreement or to exercise any rights or remedies accruing under this Agreement upon default or failure of performance may not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation under this Agreement, or to exercise any right or remedy occurring as a result of any future default or failure of performance. (f) Successors. This Agreement binds and benefits the parties and their legal successors. This Agreement does not create any personal liability on the part of any Page 5 of 6 officer or agent of the City or Reinvestment Zone or any officer, agent, or employee of the County. (g) No Waiver of Immunity. No party to this Agreement waives or relinquishes any immunity or defense on behalf of itself, its officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained in this Agreement. IN WITNESS OF THIS AGREEMENT,the City and the County have made and executed this Agreement in multiple copies, each of which is an original. [Signature Page Follows] Page 6 of 6 CITY OF CORPUS CHRISTI NUECES COUNTY __________________________________________________ Constance Sanchez Barbara Canales Chief Financial Officer Nueces County Judge Date:Date: ATTEST:ATTEST: __________________________________________________ Rebecca Huerta Kara Sands City Secretary County Clerk Date:Date: APPROVED AS TO FORM: _________________________ Assistant City Attorney For City Attorney Composition Name Term Appt. date End date Appointing Authority Position Status Category *Roland Barrera 1 11/12/2019 11/1/2020 City Council Active City *Gil Hernandez 1 11/12/2019 11/1/2020 City Council Active City *Michael Hunter 1 11/12/2019 11/1/2020 City Council Active City *Joe McComb 1 11/12/2019 11/1/2020 City Council Active City *Ben Molina 1 11/12/2019 11/1/2020 City Council Active City *Greg Smith 1 11/12/2019 11/1/2020 City Council Active City *Vacant 1 11/12/2019 11/1/2020 City Council Active Nueces County *Rudy Garza 1 11/12/2019 11/1/2021 City Council Active City *Paulette Guajardo 1 11/12/2019 11/1/2021 City Council Active City REINVESTMENT ZONE NO. 4 BOARD Duties *13 vacancies with terms to 11-1-20 and 11-1-21, representing the following categories: 9 - City Council members, 1 - Recommended by Nueces County, 1 - Director or designee of Texas State Aquarium, 1 - Director or designee of USS Lexington, and 1 - Community Member. Appoint a chairman to serve for the remainder of 2019 and for a one-year term beginning January 1, 2020. (Nueces County is recommending Judge Barbara Canales as their second representative. Tom Schmid and Steve Banta have expressed their interest in representing the Texas State Aquarium and USS Lexington respectively). (Staff is recommending the postponement of the Community Member for further recruitment). The Reinvestment Zone No. 4 Board shall make recommendations to the City Council concerning the administration of the Zone (North Beach). The Board shall prepare and adopt a project plan and reinvestment zone financing plan for the Zone, and submit the plans to the City Council for its approval under Section 311.011, Texas Tax Code. The City Council specifically authorizes the Board to approve agreements that the Board considers necessary or convenient to implement the project plan and reinvestment zone financing plan and achieve their purposes. Any amendments to the project plan and/or reinvestment zone financing plan must be approved by ordinance of City Council. The Board shall consist of fifteen (15) members. The Board shall be appointed as follows: Pursuant to Section 311.009(a), Tax Code, the respective governing bodies of each taxing unit other than the City that levies taxes within the Zone each may appoint one member of the Board if the taxing unit has approved the payment of all or part of the tax increment produced by the unit into the tax increment fund for the zone. These entities include: Del Mar College and Nueces County. Each governing body may waive its right to appoint a director. The remaining members of the Board are appointed by the City Council. To be eligible for appointment an individual must be 18 years or older of age and be a resident of the county in which the zone is located or own real property in the zone, whether or not the individual resides in the county in which the zone is located. The City Council shall have the right to appoint at least ten (10) members, with one reserved for a representative from Nueces County, and the board may exceed fifteen (15) members if necessary, for the City Council to make said ten (10) appointments. Terms of Board members are two years. Terms must be staggered, with the first term of 8 City Council appointees being for one year. Officers must be appointed as provided in the Act. Each year the governing body of the municipality or county that created the zone shall appoint one member of the board to serve as Chairman for a term of one-year that begins on January 1 of the following year. The Board of Directors may elect a Vice-Chairman to preside in the absence of the Chairman or when there is a vacancy in the office of the Chairman. The board may elect other officers as it considers appropriate. 11-12-19 Name Term Appt. date End date Appointing Authority Position Status Category *Everett Roy 1 11/12/2019 11/1/2021 City Council Active City *Vacant 1 11/12/2019 11/1/2021 City Council Active Director of Texas State Aquarium *Vacant 1 11/12/2019 11/1/2021 City Council Active Director of USS Lexington Vacant 1 N/A 11/1/2020 City Council Active Community Member Carolyn Vaughn 1 11/6/2019 11/1/2021 Nueces County Active Nueces County Tentative 1 N/A 11/1/2021 Del Mar College Active Del Mar College 11-12-19 DATE: October 24, 2019 TO: Peter Zanoni, City Manager FROM: Keith Selman, Assistant City Manager KeithSe@cctexas.com 361-826-3898 CAPTION: Ordinance to amend the 40-year Lease Agreement with SQH Sports & Entertainment, Inc., which was originally authorized on October 18, 2016 for the lease of approximately 67.69 acres of unimproved land near State Highway 286 and FM 43 (Weber Road) for a regional youth sports complex, with the amendment to provide for extension of the performance milestones in the lease and notice of default. SUMMARY: This ordinance is to execute an amendment to the Lease Agreement with SQH Sports & Entertainment, Inc. for a regional youth sports complex, to extend the performance milestones and amend the default provision to provide for 30 days’ notice of default. BACKGROUND AND FINDINGS: The Parks and Recreation Department has been working with SQH Sports and Entertainment, Inc. since January 2015 for the construction and operation of a regional youth sports complex on approximately 67.69 acres of city property located near the JC Elliot Landfill on Highway 286. The complex will focus on hosting national and regional youth sports tournaments providing support to the local tourism and economic development industries. The agreement was executed October 18, 2016 to be effective December 18, 2016. In July 2017, an agreement was made to extend performance milestones. In April 2018, City Council acted upon a first reading on a new lease which included 67.69 acres (Exhibit A), 30.22 acres (Exhibit F), and an additional 105.39 acres. After 18 months, no action was taken on the second reading, demonstrating no desire to proceed with the new 203.3 acre lease. Given the negotiations for the 203.3 acres, it was unrealistic to deman d compliance with the milestones established in the original 67.69 lease agreement. Therefore, amendment to the milestones is warranted and enumerated below : SQH Sports & Entertainment Agreement for Extension of Performance Milestones AGENDA MEMORANDUM First Reading Item for the City Council Meeting of November 12, 2019 Second Reading Item for the City Council Meeting of November 19, 2019 “8.1.2. Performance Milestones – Tenant agrees to complete the following performance milestones by the dates shown below with all dates running from the Effective Date. The determination of tenant’s successful compliance with these Performance Milestones is within the sole determination and discretion of the Director of Parks and Recreation, whose approval shall not be unreasonably withheld. Tenant agrees to provide Director of Parks and Recreation with documentation of completion of each Performance Milestone, subject to review and approval of Director of Parks and Recreation. Failure to timely and successfully complete a Performance Milestones shall be considered an “Event of Default” and subject to further action under Article 15. 8.1.2.A. The Coastal Bend Community Foundation Tracts have been conveyed to SQH or an affiliate of SQH by third party owner within eighteen (18) months from the Effective Date. Affiliate of SQH means an entity who controls, is controlled by, or is under common control with SQH. Left blank. 8.1.2.B. Within eighteen (18) months from the Effective Date, Tenant demonstrates to the satisfaction of the Director of Parks and Recreation that all utilities for the Premises have been approved in accordance with the Unified Development Code. By January 3, 2020, Tenant demonstrates to the satisfaction of the City Manager that Tenant has full funding for construction of the Improvements listed above in Section 8.1.1. as well as full funding for any additional public improvements needed for operation of the complex. 8.1.2.C. Tenant secures funding for construction of Improvements listed above within twenty-one (21) months from the Effective Date. By May 1, 2020, Tenant shall ensure that all utilities for the Premises have been approved in accordance with the Unified Development Code 8.1.2.D. By December 1, 2020, Tenant completes final design of complex within 13 months from the Effective Date. 8.1.2.E. By January 1, 2021, Tenant begins construction of complex within twenty- six (26) months from the Effective Date. 8.1.2.F. By February 1, 2022, Tenant substantially completes construction of complex within thirty-nine (39) months from the Effective Date. 8.1.2.G. By April 1, 2022, Tenant begins operations of major component s of complex within forty-one (41) months from the Effective Date. Notwithstanding anything in this Lease to the contrary, the Parties agree and understand that failure to enter into a mutually agreeable utility line agreement to provide proper utilities to the Premises within six months from the Effective Date shall be grounds for either party to terminate this Lease upon written notice, and at no cost or liability to the other party.” Article 15, Events of Default, is amended to read as follows: “ARTICLE 15: EVENTS OF DEFAULT; REMEDIES 15.1 Events of Default. The occurrence of any one or more of the following events (each an “Event of Default”) shall constitute a default and breach of this Lease by Tenant: If Tenant fails to perform any of Tenant’s obligations or breaches any covenant or representation or warranty under this Lease for a period of sixty (60) thirty (30) days after written notice from Landlord (the “Cure Period”). ALTERNATIVES: The alternative is not approving the amendment to the lease agreement, then the City would recommend acting on default. RECOMMENDATION: Staff recommends approving the amendment to extend performance deadlines and revise the default notice provisions. LIST OF SUPPORTING DOCUMENTS: Ordinance Lease Agreement Amendment to Lease Agreement Maps Page 1 of 1 Ordinance to amend the 40-year Lease Agreement with SQH Sports & Entertainment, Inc., which was originally authorized on October 18, 2016 for the lease of approximately 67.69 acres of unimproved land near State Highway 286 and FM 43 (Weber Road) for a regional youth sports complex, with the amendment to provide for extension of the performance milestones in the lease and notice of default. Be it ordained by the City Council of the City of Corpus Christi, Texas that: SECTION 1. The City Manager or her designee is authorized to execute an amendment to the Lease Agreement with SQH Sports & Entertainment, Inc. for a regional youth sports complex, to extend the performance milestones and amend the default provision to provide for 30 days’ notice of default. A copy of the amendment to the lease is on file with the City Secretary. 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 vo te: 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 A.Original Lease F.Optional Land Sports Complex Area Map 30.22 ACRE TRACT (EXHIBIT F) 67.69 ACRE TRACT (EXHIBIT A) DATE: October 11, 2019 TO: Peter Zanoni, City Manager FROM: Daniel McGinn, AICP, Director of Planning & Environmental Services DanielMc@cctexas.com (361) 826-7011 CAPTION: Ordinance disannexing approximately 540.79 acres of land located in the La Quinta corridor from the City of Corpus Christi, Texas pursuant to an amendment to a Chapter 380 economic development incentive agreement with the Port of Corpus Christi Authority and Voestalpine Texas, LLC; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. SUMMARY: The City recently annexed property in San Patricio County, including Port of Corpus Christi Authority property leased and developed by Voestalpine Texas, who has a Chapter 380 economic development incentive agreement with the City. The annexation affected the anticipated taxes Voestalpine would have to pay. The proposed disannexation, in conjunction with an amendment to the Chapter 380 agreement, will resolve Voestalpine’s taxation issue while protecting the City’s interest. Staff recommends approval of the disannextion to continue to support regional economic development and Voestalpine’s presence in the Coastal Bend. BACKGROUND AND FINDINGS: In 2013, the City entered into a Chapter 380 economic development incentive agreement with the Port of Corpus Christi and its tenant Voestalpine Texas, LLC, an Austrian steel manufacturing company, to rebate ad valorem taxes and the 1% sales tax that goes to the City’s General Fund in consideration of Voestalpine’s positive economic benefits through capital investments and job creation. The property is in the La Quinta Corridor and Voestalpine opened their plant on this site in 2017. On May 21, 2019, the City annexed approximately 3,451.31 acres of land (or 5.40 square miles) land in San Patricio County, including property owned by the Port and leased/developed by Voestalpine. Annexation of the property resulted in changes to Voestalpine’s tax liabilities. Specifically, Voestalpine would now have to pay sales tax owed to the City. The 2013 Chapter 380 agreement already provided an agreed upon rebate of taxes. The City, Voestalpine, and the Port have been negotiating terms of an amendment to the Chapter 380 agreement to allow Disannexation of 540.79 Acres in the La Quinta Corridor for Voestalpine Texas, LLC AGENDA MEMORANDUM First Reading for the City Council Meeting November 12, 2019 Second Reading for the City Council Meeting November 19, 2019 the disannexation. The amendment to the agreement guarantees that the City will disannex the property by the end of 2019. Voestalpine and the Port also agree that they will enter into an Industrial District Agreement with the City, which is another type of economic development incentive, before the Chapter 380 agreement expires on December 31, 2033. Failure to enter into an Industrial District Agreement will require Voestalpine to pay back taxes the City rebated. Staff recommends disannexation of the 540.79 acres that includes the Port/Voestalpine property in conjunction with an amendment to the Chapter 380 agreement described above. The proposed disannexation is a means by which the City can continue to support regional economic development and Voestalpine’s presence in the Coastal Bend. Upon disannexation, the remaining annexed territory in San Patricio County will be 2,910.52 acres or 4.55 square miles. Analysis of the Request: The proposed disannexation is consistent with City policy and the Comprehensive Plan as follows: • Plan CC’s Vision Statements identifies that “Our broadly diversified economy provides opportunity for all.” • Plan CC’s Future Land Use Plan indicates this area for industrial development. • Plan CC Element 7, Goal 6 states “Annexation plans provide for orderly growth and industrial agreements in the ETJ.” • Plan CC Element 7, Goal 6, Strategy 6 states, “Support the evaluation of the use of industrial district agreements in lieu of annexation for industrial area of the city and ETJ.” ALTERNATIVES: In lieu of the proposed disannexation, staff considered further negotiating the economic development incentives contained within Voestalpine’s Chapter 380 agreement. Staff did not pursue this alternative because it would require additional time, which could lead to additional tax liability for Voestalpine. Collection of taxes would be inefficient for the City because the majority of any taxes paid would ultimately have to be refunded under the terms of the current Chapter 380 agreement. FISCAL IMPACT: Of the 1.5% of sales tax revenues the City receives from the State, 1% goes to the General Fund, ¼% goes to Type A, 1/8% goes to Type B, and 1/8% goes to Crime Control. The financial impact of disannexing this property is the loss of the potential ½% of the sales tax revenue that goes to Type A, Type B, and Crime Control. Under Voestalpine’s current Chapter 380 economic development incentive agreement, ad valorem tax and the 1% of sales tax revenue that goes to the General Fund must be reimbursed even if the property remained within the City Limits. RECOMMENDATION: Staff recommends approval of the proposed disannexation. The proposed disannexation is a means by which the City can continue to support regional economic development and Voestalpine’s presence in the Coastal Bend. LIST OF SUPPORTING DOCUMENTS: Ordinance with Map Exhibit Presentation 1 Ordinance disannexing approximately 540.79 acres of land located in the La Quinta corridor from the City of Corpus Christi, Texas pursuant to an amendment to a Chapter 380 economic development incentive agreement with the Port of Corpus Christi Authority and Voestalpine Texas, LLC; adjusting the City boundaries accordingly; providing for severance, publication, and an effective date. WHEREAS, the City Council finds the areas described in Exhibits A & B are not necessary or suitable for city purposes and that the best interest of the general public of the City of Corpus Christi to disannex the areas described in Exhibits A & B; WHEREAS, the City of Corpus Christi has a pending amendment to the Chapter 380 Economic Development Incentive Agreement with Voestalpine Texas, LLC; WHEREAS, this disannexation is pursuant to Texas Local Government Code §43.142 and the City Charter of the City of Corpus Christi, Texas; and WHEREAS, disannexation of the area described in Exhibits A & B, amendment to previous annexation ordinances, and amendment and adoption of the official map and boundaries of the City and its extraterritorial jurisdiction are consistent with the procedural rules prescribed by Texas Local Government Code Chapter 43. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The foregoing recitals are hereby found to be true and correct and are hereby adopted by the City Council and made a part hereof for all purposes as findings of fact. SECTION 2. The following described tracts of land being approximately 540.79 acres are hereby disannexed and discontinued as a part of the City of Corpus Christi so that the same will no longer be a part of the City of Corpus Christi for any purpose whatsoever, said tracts of land being more particularly described by metes and bounds and maps in Exhibits A & B attached to and incorporated as part of this ordinance. SECTION 3. The boundaries of the City of Corpus Christi, Texas are amended to exclude only that property comprising an approximately 540.79 acres described in Exhibits A & B. SECTION 4. The official map and boundaries of the City and its extraterritorial jurisdiction, previously adopted and amended, are amended as described in this ordinance. SECTION 5. The City Manager or designee is directed and authorized to perform or cause to be performed all acts necessary to correct the official map of the City and its extraterritorial jurisdiction. SECTION 6. The City of Corpus Christi, Texas, hereby relinquishes any and all right, jurisdiction or control over the above described disannexed area but retains its extraterritorial jurisdiction. SECTION 7. The above described territory hereby disannexed shall no longer be part of the City of Corpus Christi, Texas, and the property so removed hereby shall no longer bear its pro rata part of the taxes levied by the City of Corpus Christi, Texas. 2 SECTION 9. The City Secretary is hereby directed to file with the County Clerk of San Patricio, Texas, a certified copy of this ordinance. SECTION 10. Publication will be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 11. This ordinance shall be effective immediately upon passage. SECTION 8. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the definite intent of this City Council that every section paragraph subdivision clause phrase word or provision hereof be given full force and effect for its purpose unless said holding has the effect of diminishing the revenue payable to the City under any agreement entered into under this ordinance. 3 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 Exhibit A Page 1 of 2 METES AND BOUNDS DESCRIPTION OF A 540.79-ACRE TRACT 540.79 acres of land out of a called 930.28-acre tract known as Tract II, said 930.28-acre tract being a portion of a called 1,089.34-acre tract described in a deed to the Port of Corpus Christi Authority (P.O.C.C.A.) of Nueces County, Texas as recorded in Document No. 1998005467, Official Records, Nueces County, Texas and being out of a called 2,496.66-acre tract as recorded in Volume 458, Page 469, Deed Records, San Patricio County, Texas also being out of portions of the T.T. Williamson Survey, Abstract 286, Abstract 287, Abstract 288, and Abstract 289, and the J. Gerraghty Survey, Abstract 139, all being in San Patricio County, Texas said 540.79-acre tract being more particularly described by metes and bounds as follows; BEGINNING at a found 1” iron pipe for a corner of the northern boundary of the 540.79-acre tract and the southwest corner of a 80.951-acre tract known as Tract V out of Geronimo Valdez Survey, recorded in Clerk File No. 640158, said corner having a State Plane Coordinate of N 17,220,150.60’, E 1,377,726.65’, NAD’83, Texas South Zone in U.S. Feet and also being the southwest corner of a P.O.C.C.A 7.79-acre tract known as Tract III and said corner lying on the north boundary of the said 930.28-acre tract (Tract II); THENCE South 70-28-50 East with the south boundary of the said 7.79-acre tract and the north boundary of the 930.28-acre tract a distance of 127.283 feet to the southeast corner of the 7.79-acre tract (Tract III) and the northeast corner of the 930.28-acre tract (Tract II), for the northeast corner of this tract; THENCE South 17-44-35 East, with the common boundary of a 538.765-acre tract recorded in Clerk’s File No. 664353 a distance of 7,066.19 feet; THENCE South 03-35-29 West, a distance of 2,214.42 feet with the said common boundary line of the 538.765-acre tract to a point on the common boundary line of Nueces County and San Patricio County, being the northeast corner of a 21.98-acre tract as referenced as “Tract IV” recorded in Clerk’s File Document Number 458816, for the southeast corner of this tract; THENCE South 79-56-31 West, with the common boundary line of the said Tract IV” and the common boundary line of Nueces County and San Patricio County and this tract, 288.067 feet; THENCE North 07-29-58 West, a distance of 111.196 feet to a 5/8” iron rod with red cap found for an exterior corner of this tract and an exterior corner of a 460.42-acre tract of land out of the said 930.28- acre tract. THENCE with said 460.42-acre tract •North 07-29-58 West, a distance of 1,748.188 feet to a 5/8” iron rod with red cap found for an interior corner of this tract; •South 78-19-34 West, a distance of 2,391.35 feet to a 5/8” iron rod with red cap set for the P.C. of a circular curve to the right and the southwest corner of this tract; •Along a Tangent Curve in a Northwesterly direction, with the arc of said circular curve to the right, whose Central Angle is 86-48-50, whose Radius is 500.00 feet, whose Chord Direction is North 58-16-02 West, and Arc Distance of 757.59 feet to a 5/8” iron rod with red cap set for a corner, the P.T. of said curve, for an exterior corner of this tract; Page 2 of 2 •North 14-51-37 West, a distance of 463.41 feet to a 5/8” iron rod with red cap found for an interior corner of this tract; •North 01-15-07 West, being approximately 295 feet east and parallel to the east toe of levee recognized as D.M.P.A. No. 14, a distance of 3,882.65 feet to a 5/8” iron rod with red cap found for a corner, the P.C. of curve for an interior corner of this tract; •Along a Tangent Curve in a Northwesterly direction, with the arc of said circular curve to the left, whose Central Angle is 56-56-58, whose Radius is 1,626.99 feet, whose Chord Direction is North 29-43-36 West, and Arc Distance of 1,617.15 feet to a 5/8” iron rod with red cap set for a corner, the P.T. of said curve, for an exterior corner of this tract; •North 09-28-59 East, being 200 feet east and parallel to the west line of said 930.28-tract, a distance of 1,142.436 feet for an interior corner of this tract; THENCE North 65-19-15 West, a distance of 205.878 feet to the northwest boundary line of the 930.28- acre tract and an interior corner of this tract; THENCE North 09-28-28 East, with the said northwest boundary of the 930.28-acre tract, 847.434 feet, to a point on the Extraterritorial Jurisdiction (ETJ) Line for the City of Gregory and a northwest corner of this tract; THENCE North 75-50-29 East, with the said ETJ line, 592.65 feet, to a point of the northeast boundary line of said 930.28-acre tract, a point along the southern boundary of said 80.951-acre (Tract V), and a corner along the northern boundary of this tract; THENCE South 70-28-53 East with the common boundary of said 80.951-acre tract and the northern boundary of this tract, a distance of 1,671.79 feet to the POINT OF BEGINNING and containing 540.79 acres of land, more or less. 100.05 6 A C R E T R A C T OWNE R : M A R T I N M A R I E T T A M A T E R I A L S REAL E S T A T E I N V E S T M E N T S , I N C . DOC. N O . 6 3 6 5 6 4 O.P.R. S . P . C . T . 80.951 ACRE TRACTOWNER: CORPUS CHRISTILIQUIFACTION, LLCDOC. NO. 640158O.P.R.S.P.C.T. 70.00 ACRE TRACTOWNER: BERRYMANPROPERTIES, LTDDOC. NO. 391196R.P.R.S.P.C.T. 538.765 ACRE TRACTOWNER: CORPUS CHRISTIALUMINA, LLCDOC. NO. 664353O.P.R.S.P.C.T.La Qu in ta Road (p r iva te road ) 930.28 ACRE TRACT (TRACT II)OWNER: PORT OF CORPUSCHRISTI AUTHORITYOF NUECES COUNTY, TEXASDOC. NO. 458816R.P.R.S.P.C.T. 540.79 ACRE DISANNEXATIONTRACT 7.79 ACRE TRACT (TRACT III)OWNER: PORT OF CORPUS CHRISTIAUTHORITY OF NUECES COUNTY, TEXASDOC. NO. 458816R.P.R.S.P.C.T.CITY LIMITSCITY LIMITSCITY L IM ITS CITY L I M I T S GREGOR Y ETJ 21.98 ACRE TRACT (TRACT IV)OWNER: PORT OF CORPUS CHRISTI AUTHORITYOF NUECES COUNTY, TEXASDOC. NO. 458816R.P.R.S.P.C.T. POINTOFBEGINNING L1 L2 L3 L4 L6 L5 L7 L9 L8 L11 L10 L13 L14 C1 C2 L12 LINE BEARING DISTANCE L1 S 70-28-50 E 127.283' L2 S 17-44-35 E 7,066.19' L3 S 03-35-29 W 2214.42' L4 S 79-56-31 W 288.067' L5 N 07-29-58 W 111.196' L6 N 07-29-58 W 1748.188' L7 S 78-19-34 W 2,391.35' L8 N 14-51-37 W 463.41' L9 N 01-15-07 W 3,882.65' L10 N 09-28-59 E 1,142.436' L11 N 65-19-15 W 205.878' L12 N 09-28-28 E 847.434' L13 N 75-50-29 E 592.659' L14 S 70-28-53 E 1,671.791' General Notes:1.) Grid Bearings and Distance shown hereon are referenced to the Texas Coordinante System of 1983, Texas South Zone 4205, and are based on the North American Datum of 1983.2.) South features shown on this Survey may be out of scale for clarity3.) City Limits shown on Exhibit recieved from the City of Corpus Christi4.) ETJ shown on Exhibit recieved from the City of Corpus Christi CURVE DELTA ANGLE RADIUS ARC LENGTH CHORD BEARING CHORD LENGH C1 86-48-50 500.00' 757.594' N 58-16-02 W 687.176' C2 56-56-58 1,626.99' 1,617.155' N 29-43-36 W 1,551.403' ¯ 0 1,000 2,000500Feet 1 inch = 1,250 feetExhibit BSketch to Accompany Metes & Bounds Descriptionof 540.79-acre Tract Disannexation of 540.79 Acres For Voestalpine Texas, LLC Council Presentation November 12, 2019 1 TX 35 CR 932 Current City Limits Approximately 3,451.31 Acres (5.40 sq. mi.) Voestalpine Texas Site (460 acres) 3 Disannexation Area Approximately 540.79 Acres (0.85 sq. mi.) TX 35 CR 93 4 New City Limits After Disannexation Approximately 2,910.52 Acres (4.55 sq. mi) TX 35 CR 93 DATE: November 4, 2019 TO: Peter Zanoni, City Manager FROM: Robert Rocha, Fire Chief rrocha@cctexas.com (361) 826-3932 CAPTION: Ordinance amending the FY2019-2020 Operating Budget, adopted by Ordinance No. 031870, to create a temporary provisional Fire Captain position within the Fire Department complement. SUMMARY: Recently, an arbitrator reinstated a Fire Captain back into his position which was vacated in January of 2018 after he was terminated. The vacancy created in January of 2018 has since been filled. As such, a provisional position is being requested for the most recently promoted Fire Captain, until such time that a new vacancy occurs or until the end of Fiscal Year 2019-2020. BACKGROUND AND FINDINGS: On October 19, 2019, an arbitrator issued an award letter reinstating a previously terminated Fire Captain. Pursuant to Article 24, Section 2(C)(2) of the Collective Bargaining Agreement between the City of Corpus Christi and the Corpus Christi Professional Firefighters’ Association: If an indefinitely suspended Fire Fighter’s appeal is sustained and the Fire Fighter is then reinstated but the position has been filled, the Fire Chief shall request that a provisional position be temporarily added in that rank for the remainder of the fiscal year in which this occurs. That request may be granted, denied or modified based on the needs and budgetary constraints of the Fire Department and the City. Because the vacancy created in January of 2018 has since been filled, the department is requesting a temporary provisional Fire Captain position be added to the number of positions authorized for classification of Fire Captain from 79 to 80. Ordinance amending the FY2019-2020 Operating Budget by creating a provisional Fire Captain position within the Fire Department. AGENDA MEMORANDUM Action Item for the City Council Meeting November 12, 2019 ALTERNATIVES: The alternative would be to deny the provisional position and demote the most recently promoted Fire Captain to previously held rank. The reinstated Fire Captain would then fill this position. The demoted Fire Captain would be placed on a reinstatement list and promoted back to the rank of Fire Captain upon the creation of a vacancy. FINANCIAL IMPACT: The cost of adding the provisional Fire Captain position would be a total of $87,878.00 inclusive of retirement and benefits. Funding Detail: Fund: 1020 General Fund Organization/Activity: 12010 Fire Stations Mission Element: 093 Project # (CIP Only): N/A Account: 510100 Salary and Wages RECOMMENDATION: Staff recommends approval of this ordinance adding a temporary provisional position. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance amending the FY2019-2020 Operating Budget, adopted by Ordinance No. 031870, to create a temporary provisional Fire Captain position within the Fire Department complement. WHEREAS, the Fire Department is seeking to add a temporary provisional** Fire Captain position; and WHEREAS, pursuant to §143.021 Texas Local Government Code, the Corpus Christi City Council shall prescribe the number of positions in each classification. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Ordinance No. 031870, SECTION 4. Firefighter Positions is amended by increasing the number of positions authorized for classification of Fire Captains from seventy-nine (79) to eighty (80). Firefighter Positions The number of positions authorized for each firefighter classification in the Fire Department shall be: Firefighter I – 110* Firefighter II -EMS – 133 Firefighter II-Engineer – 73 Fire Captain – 79 80** Battalion Chief – 13 Assistant Fire Chief – 4 Deputy Fire Chief – 1 Fire Chief – 1 FY 19-20 TOTAL 414 415** ** This temporary provisional position will remain in place until either a vacancy occurs in a Fire Captain position or until the end of Fiscal Year 2019 -2020, after such time the number of authorized Fire Captain positions will drop back down to 79 and the total complement will reduce back down to 414. * This number may be temporarily increased by graduates from a fire academy authorized by the City Manager, which temporary increase shall be reduced to budgeted total through attrition. 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 ____________ Roland Barrera ____________ Michael Hunter ____________ 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 ____________ Ben Molina ____________ Rudy Garza ____________ Everett Roy ____________ Paulette Guajardo ____________ Roland Barrera ____________ Michael Hunter ____________ Greg Smith ____________ Gil Hernandez ____________ PASSED AND APPROVED on this the _______ day of _______________, 2019. ATTEST: City of Corpus Christi: ________________________________ _________________________ Rebecca Huerta Joe McComb City Secretary Mayor DATE:October 17, 2019 TO:Peter Zanoni, City Manager FROM:Fred Segundo, Director of Aviation freds@cctexas.com (361) 289-0171 Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Kim Baker, Director of Contracts and Procurement kimb2@cctexas.com (361) 826-3169 CAPTION: Ordinance accepting and appropriating Airport Grant #58 in the amount of $9,445,368; awarding a contract in the amount of $6,884,574.42 with Airfield Contracting, a Joint Venture between Head, Inc. of Columbus, Ohio and Jackson Construction Services, LLC, of Jacksboro, Texas for the total base bid and additive alternates 1 and 2 for the Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East General Aviation Apron Phase IV projects, effective upon issuance of notice to proceed, with funding available in the Airport Capital program by acceptance of the grant and; transferring $1,049,486 as a 10% grant match from the unreserved fund balance of the Airport Operational Fund. SUMMARY: This grant was recently announced by Senator John Cornyn. The item awards a construction contract, in compliance with the Airport Master Plan, to address on-going pavement reconstruction at CCIA for the Terminal Apron and East General Aviation (GA) Apron. Design and construction are being completed in a phased approach with the majority of required funding provided through the Federal Aviation Administration grant program. This contract represents the fourth year of a five-year program to rehabilitate CCIA Aprons and future phases are contingent on FAA Funding. BACKGROUND AND FINDINGS: The Corpus Christi International Airport (CCIA) is owned, operated, and maintained by the City of Construction Contract Award Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV AGENDA MEMORANDUM First Reading for the City Council Meeting of November 12, 2019 Second Reading for the City Council Meeting of November 19, 2019 Corpus Christi and is located in Nueces County, Texas. CCIA is made up of over 2,700 acres; 1,100 acres being inside the Airport Operations Area (AOA) and classified as a non-hub, commercial service airport. The existing runway configuration at CCIA includes two runways. Runway 13-31 is oriented to the northwest-southeast and serves as the primary runway. It is 7,508 feet long and 150 feet wide. Runway 18-36 serves as the crosswind runway and is 6,080 feet long and 150 feet wide. CCIA enplanes more than 360,000 passengers annually and experiences over 100,000 annual aircraft operations each year. The Terminal Apron and East GA Apron are areas of the airport where aircraft are parked, cargo loaded and unloaded, aircraft refueled, and passenger boarded. The Terminal Apron services commercial passenger airlines that access the main terminal and the East GA Apron is essential for maintaining service to general aviation aircraft and supports private terminals and hangars on the east side of the airport. The total pavement area of the two aprons is approximately 161,000 square yards (SY) with approximately 102,000 SY for the Terminal Apron and 59,000 SY for the East GA Apron. The existing apron pavement is a combination of Portland Cement Concrete (PCC) and Hot-Mix- Asphalt-Concrete (HMAC). It is experiencing severe distress with cracking, rutting and concrete spalling. This deterioration creates a high potential for generating "foreign object debris" (FOD). FOD can cause damage to the aircraft when FOD enters engines or gets propelled at high velocities by aircraft engine exhaust or propeller speed. The pavement cracking allows water penetration into the base and subgrade, accelerating structural degradation of pavement. The existing pavement was not originally designed for the current heavier aircraft and equipment loads. PROJECT SCOPE: This construction contract provides for full reconstruction of both the East GA and Terminal Apron pavements with Portland Cement Concrete. There are two additive alternates included with the project that, will reconstruct 20,355 SY of the existingTerminal Apronand 3,725 SY of the existing East GA Apron. Base Bid Summary: Terminal Apron Base Bid consist of reconstructing existing asphalt and concrete pavements with a concrete pavement section on a cement treated base course and providing a new underdrain system. East GA Apron Base Bid will consist of reconstructing the existing asphalt and concrete pavement with a concrete pavement section and providing a new underdrain system. Additive Alternate Summary: Additive Alternate I for the Terminal Apron consist of additional limits of reconstruction. Additive Alternate II for the East GA Apron consist of additional limits of reconstruction. The Terminal Apron Reconstructed pavement section will consist of the following layers: 15-inch Portland Cement Concrete (With Compression Joint Sealant) (P-501) 10-inch Cement Treated Base Course (P-304) Existing Lime-Treated Subgrade (to remain) The East GA Apron Reconstructed pavement section will consist of the following layers: 15-inch Portland Cement Concrete (With Compression Joint Sealant) (P-501) 10-inch Cement Treated Base Course (P-304) 12-inch Lime-Treated Subgrade (P-155) PROJECT TIMELINE: Projected Schedule reflects City Council award in November 2019 with anticipated completion in November 2020. COMPETITIVE SOLICITATION PROCESS: On June 12, 2019 the City received two bids as summarized below: BID SUMMARY Airfield Contracting Inc.SpawGlass *Engineer’s Estimate Base Bid 1 $6,507,180.62 $7,061,206.52 Additive Alt 1 $171,107.00 $200,962.40 Additive Alt 2 $206,286.80 $210,917.40 Total $6,884,574.42 $7,473,086.32 $7,714,000.00 *Engineer’s estimate includes Base Bid plus all additive alternates. BID EVALUATIONS: The City analyzed the bids in accordance with the bid documents and determined that Airfield Contracting Inc., of Ohio,is the lowest responsive and responsible bidder. ALTERNATIVES: This Airport Master Plan approved project is part of an on-going program to replace asphalt with concrete on the Terminal Apron and for the East General Aviation Apron. The FAA has been responsible for 90% of the construction costs. City Staff is recommending approval of this contract as is, due to the need to replace the asphalt and due to the FAA cost-sharing benefits. FISCAL IMPACT: This item proposes to award a construction contract in the amount of $6,884,574.42 with Airfield Contracting, a Joint Venture between Head, Inc. of Columbus, Ohio and Jackson Construction Services, LLC, of Jacksboro, Texas for the base bid and additive alternates 1 and 2 for the Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East General Aviation Apron Phase IV projects. This contract will be effective upon issuance of notice to proceed. This is an approved CCIA Capital Improvement Project and a joint Federal Aviation Administration (FAA)/City project with a respective 90/10 percent construction cost sharing. Funding is available through acceptance, appropriation and transfer of the grant to a capital fund, with the City’s 10% match available through the appropriation and transfer of $1,049,486 from the unreserved fund balance of the Airport Operational Fund. M J J A S O N D J F M A M J J A S O N CONSTRUCTIONBID 2019 2020 This grant was awarded to the City of Corpus Christi in September 2019. The FAA closely monitors administration of grant funds from the time of grant award to financial and physical close- out of the project. Grant funds will only be used as outlined in the grant application and defined in the grant assurance; and, includes any associated construction-related costs such as material testing and inspection. Grant proceeds remaining after satisfactory completion of this project can be utilized on future phases of the Terminal Apron and East GA Apron work contingent upon FAA approval. Funding Detail: Funding details include: Fund: Airport Capital Improvement Program Grants Fund (Fund 3020) Mission Element: Airport Development (ME #274) Projects: CCIA Rehabilitate Terminal Apron Phase III (Project #18148A) CCIA Rehabilitate East GA Apron Phase IV (Project #18149A) Account: Construction (550910) Activity: 18148-A-3020 18149-A-3020 Amount: #18148A: $4,945,142.07 #18149A: $1,250,974.90 Fund: Airport Capital Reserve Fund (Fund 3018) Mission Element: Airport Development (ME #274) Projects: CCIA Rehabilitate Terminal Apron Phase III (Project #18148A) CCIA Rehabilitate East GA Apron Phase IV (Project #18149A) Account: Construction (550910) Activity: 18148-A-3018 18149-A-3018 Amount: #18148A: $549,460.23 #18149A: $138,997.22 RECOMMENDATION: Staff and the design consultant, Garver, LLC., recommend awarding the construction contract for the Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East General Aviation Apron Phase IV projects, in the amount of $6,884,574.42 for the total base bid and additive alternate 1 and 2 with Airfield Contracting, a Joint Venture between Head, Inc. of Columbus, Ohio and Jackson Construction Services, LLC, of Jacksboro, Texas, based on the acceptance and appropriation of the grant and city match. The construction duration is planned for 12 months from issuance of the Notice to Proceed to begin construction in November 2019 with completion in November 2020. LIST OF SUPPORTING DOCUMENTS: Ordinance Location Maps Presentation Bid Tab Letter of Recommendation Ordinance accepting and appropriating Airport Grant #58 in the amount of $9,445,368; awarding a contract in the amount of $6,884,574.42 with Airfield Contracting, a joint venture between Head, Inc. of Columbus, Ohio and Jackson Construction Services, LLC, of Jacksboro, Texas for the total base bid and additive alternates 1 and 2 for the Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East General Aviation Apron Phase IV projects, effective upon issuance of notice to proceed, with funding available in the Airport Capital Program by acceptance of the grant and; transferring $1,049,486 as a 10% grant match from the Unreserved Fund Balance of the Airport Operational Fund. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1.That $9,445,368 from Federal Aviation Administration Grant No. 3-48-0051- 058-2019 is accepted and appropriated in the No. 3020 Airport Capital Improvement Fund. SECTION 2.A transfer from the Airport Operating fund 4610 to the Airport Capital Reserve fund 3018 is approved, and FY 2020 Operating Budget adopted by Ordinance No. 031870 is amended to increase expenditures in the amount of $1,049,486. SECTION 3.The FY 2020 Capital Budget adopted by Ordinance No. 031870 is amended to appropriate the revenue transferred into the Airport Capital Reserve fund 3018, increasing revenues and expenditures by $10,494,854 each. SECTION 4.The City Manager or designee is authorized to execute a construction contract with Airfield Contracting, a joint venture between Head, Inc. of Columbus, Ohio and Jackson Construction Services, LLC of Jacksboro, Texas for the Total Base Bid plus Additive Alternates No. 1 & 2 in the amount of $6,884,574.42 for the Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East General Aviation Apron Phase IV projects. 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 37 181 N CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV LOCATION MAP NOT TO SCALE CITY COUNCIL EXHIBIT Project Number: 18148A & 18149A PROJECT LOCATION N CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV VICINITY MAP NOT TO SCALE CITY COUNCIL EXHIBIT East GA Apron Terminal Apron TX-44 Corpus Christi International Airport Project Number: 18148A & 18149A N CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV VICINITY MAP NOT TO SCALE CITY COUNCIL EXHIBIT Terminal Apron Corpus Christi International Airport East GA Apron Additive Alternate 2 Limits Additive Alternate 1 Limits Project Number: 18148A & 18149A Council Presentation November 12, 2019 Corpus Christi International Airport (CCIA) Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV 1 2 Project Location 3 Project Vicinity 4 Project Vicinity Continued 5 Project Scope This is a joint FAA/City airport revenue funded project with 90/10 construction cost sharing for full reconstruction of two pavement sections on the Terminal and East General Aviation (GA) Apron. A summary of the project is below: Two base bids with one bid alternate each, Base bid 1 is for the Terminal Apron reconstruction Base bid 2 is for the East GA Apron reconstruction Reconstructing approximately 26,000 SY of existing asphalt and concrete pavement with concrete pavement on Terminal Apron and East GA Apron, Minor electrical upgrades for airfield lighting and signage, New pavement markings and miscellaneous improvements. 6 Project Schedule Project Construction Estimate: 12 Months Projected Schedule reflects City Council award in November 2019 with anticipated completion in November 2020. M J J A S O N D J F M A M J J A S O N CONSTRUCTIONBID 2019 2020 7 Questions? 3755 S. Capital of Texas Highway Suite 325 Austin, TX 78704 TEL 512.485.0009 FAX 512.485.0010 www.GarverUSA.com C E L E B R A T I N G O N E H U N D R E D Y E A R S 1 9 1 9 to 2 0 1 9 June 17, 2018 Corpus Christi International Airport Attn: Mr. Fred Segundo 1000 International Drive Corpus Christi, Texas 78406 Re: Corpus Christi International Airport Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV Recommendation of Award Dear Mr. Segundo: Bids were received for the “Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV " project at Corpus Christi City Hall at 2:00 p.m. (local time) on June 12, 2019. The bids have been checked for accuracy and for compliance with the contract documents. A tabulation of the bids received is enclosed with this letter. The contract documents included two base bids and two additive alternates. The city received two bids on the project. Airfield Contracting, a Joint Venture between Head, Inc. and Jackson Construction Services, LLC, submitted the low bid for the project in the amount of $6,884,574.42 for all bid schedules including Base Bid (Parts A through C), Additive Alternate 1, and Additive Alternate 2. The Engineer’s Opinion of Probable Cost was $7,413,339.41 for all bid schedules. See attached for the complete bid tab. We believe that the bid submitted by Airfield Contracting represents a good value for the Corpus Christi International Airport. Contingent upon Federal Aviation Administration approval of funding, we recommend that the construction contract for the “Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV be awarded to Airfield Contracting. Please call me if you have any questions. Sincerely, GARVER, LLC Derek Mayo, P.E., PMP Project Manager Attachments: Bid Tabulation Cc: Victor Gonzalez, Marcelino Sanchez, Eli Pena, Isaac Perez, Carl Gross TABULATED BY: Derek Mayo, P.E.BID DATE: June 12, 2019, 2:00 PM (Local Time) TIME OF COMPLETION: Base Bid: 270 Calendar Days ENGINEER'S ESTIMATE: $7,413,339.41 (ALL BID SCHEDULES) ITEM QTY. UNIT DESCRIPTION UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE A1 1 L.S.01 29 01 MOBILIZATION (MAX 5%)$328,283.00 $328,283.00 $208,019.16 $208,019.16 A2 1 L.S.01 29 01 BONDS AND INSURANCE $100,000.00 $100,000.00 $96,713.00 $96,713.00 A3 1 L.S.01 29 01 OWNER'S PROTECTIVE INSURANCE $7,000.00 $7,000.00 $11,583.00 $11,583.00 B1 1 L.S.SITE PREPARATION $643,305.93 $643,305.93 $486,272.71 $486,272.71 B2 1 L.S.TRENCH AND EXCAVATION SAFETY SYSTEMS $977.48 $977.48 $1,521.24 $1,521.24 B3 1 L.F.LOCKOUT/TAGOUT AND CONSTANT CURRENT REGULATOR CALIBRATION PROCEDURES $11,889.02 $11,889.02 $7,260.34 $7,260.34 B4 14 L.F.EXISTING BASE MOUNTED EDGE LIGHT, REMOVED $1,188.90 $16,644.60 $379.08 $5,307.12 B5 10 L.S.L-861T BASE MOUNTED TAXIWAY EDGE LIGHT, INSTALLED $1,188.90 $11,889.00 $3,505.87 $35,058.70 B6 1 EACH TEMPORARY AIRFIELD LIGHTING $5,944.52 $5,944.52 $12,329.51 $12,329.51 B7 845 EACH 4 INCH PERFORATED UNDERDRAIN PIPE, INSTALLED $36.15 $30,546.75 $26.00 $21,970.00 B8 170 L.S.4 INCH NONPERFORATED OUTFALL PIPE, INSTALLED $32.91 $5,594.70 $17.12 $2,910.40 B9 4 LF UNDERDRAIN CLEANOUT $1,098.49 $4,393.96 $994.67 $3,978.68 B10 1 LF SAFETY END TREATMENT $2,260.16 $2,260.16 $1,263.06 $1,263.06 B11 19515 S.Y.PAVEMENT REMOVAL, ASPHALT (~18")$15.46 $301,701.90 $19.62 $382,884.30 B12 400 S.Y.PAVEMENT REMOVAL, CONCRETE (~15")$32.55 $13,020.00 $52.71 $21,084.00 B13 3795 L.F.UNCLASSIFIED EXCAVATION $26.24 $99,580.80 $34.13 $129,523.35 B14 950 L.F.UNSUITABLE EXCAVATION $25.10 $23,845.00 $59.97 $56,971.50 B15 1 S.Y.TEMPORARY EROSION CONTROL $55,246.49 $55,246.49 $63,272.82 $63,272.82 B16 19700 S.Y.CEMENT-TREATED BASE COURSE (10")$45.66 $899,502.00 $41.65 $820,505.00 B17 19515 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$166.68 $3,252,760.20 $149.07 $2,909,101.05 B18 1700 C.Y.PAVEMENT MARKINGS (YELLOW) WITH REFLECTIVE MEDIA $3.70 $6,290.00 $3.80 $6,460.00 B19 3410 C.Y.PAVEMENT MARKINGS (BLACK) WITHOUT REFLECTIVE MEDIA $3.60 $12,276.00 $3.80 $12,958.00 B20 500 C.Y.PAVEMENT MARKINGS (RED) WITHOUT REFLECTIVE MEDIA $2.95 $1,475.00 $3.80 $1,900.00 B21 2185 L.S.PAVEMENT MARKINGS (WHITE) WITH REFLECTIVE MEDIA $3.70 $8,084.50 $3.80 $8,303.00 B22 790 S.Y.TEMPORARY PAVEMENT MARKINGS (YELLOW) WITH REFLECTIVE MEDIA $3.80 $3,002.00 $3.80 $3,002.00 B23 2990 TON PAVEMENT MARKING REMOVAL $1.03 $3,079.70 $3.80 $11,362.00 B24 3225 S.Y.SEEDING $2.03 $6,546.75 $6.34 $20,446.50 B25 925 S.F.SODDING $6.33 $5,855.25 $14.28 $13,209.00 B26 2000 S.F.NO. 8 AWG, 5 kV, L-824, TYPE C CABLE, INSTALLED IN TRENCH, DUCT BANK OR CONDUIT $4.76 $9,520.00 $3.19 $6,380.00 B27 1075 S.F.NO. 6 AWG, SOLID, BARE COUNTERPOISE WIRE, INSTALLED IN TRENCH, ABOVE THE DUCT BANK OR CONDUIT, INCLUDING GROUND RODS AND GROUND CONNECTORS$4.76 $5,117.00 $3.35 $3,601.25 B28 1075 S.F.NON-ENCASED, SCHEDULE 40 PVC ELECTRICAL CONDUIT, 1-WAY 2"C $29.72 $31,949.00 $31.87 $34,260.25 AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III AND EAST GA APRON PHASE IV PROJECT NO. 18148A & 18149A SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 BASE BID PART A - GENERAL $5,083,095.78 SUBTOTAL PART A - BASE BID - GENERAL (Items A1 thru A3) SUBTOTAL PART B - BASE BID - TERMINAL APRON (Items B1 thru B28) $435,283.00 $5,472,297.71 Part B - BASE BID - TERMINAL APRON $316,315.16 CCIA Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV Bid Tabulation Bids Opened: 2pm, June 12, 2019 1 of 3 TABULATED BY: Derek Mayo, P.E.BID DATE: June 12, 2019, 2:00 PM (Local Time) TIME OF COMPLETION: Base Bid: 270 Calendar Days ENGINEER'S ESTIMATE: $7,413,339.41 (ALL BID SCHEDULES) AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III AND EAST GA APRON PHASE IV PROJECT NO. 18148A & 18149A SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 C1 1 L.S.SITE PREPARATION $191,064.76 $191,064.76 $66,097.33 $66,097.33 C2 1 L.S.TRENCH AND EXCAVATION SAFETY SYSTEMS $450.52 $450.52 $1,521.24 $1,521.24 C3 1 S.Y.LOCKOUT/TAGOUT AND CONSTANT CURRENT REGULATOR CALIBRATION PROCEDURES $2,972.26 $2,972.26 $3,630.18 $3,630.18 C4 3 S.Y.EXISTING BASE MOUNTED EDGE LIGHT, REMOVED $1,188.90 $3,566.70 $408.06 $1,224.18 C5 3 C.Y.L-861T BASE MOUNTED TAXIWAY EDGE LIGHT, INSTALLED $1,188.90 $3,566.70 $3,505.87 $10,517.61 C6 1 C.Y.TEMPORARY AIRFIELD LIGHTING $5,944.52 $5,944.52 $12,329.51 $12,329.51 C7 65 S.Y.4 INCH PERFORATED UNDERDRAIN PIPE, INSTALLED $42.27 $2,747.55 $36.75 $2,388.75 C8 160 TON 4 INCH NONPERFORATED OUTFALL PIPE, INSTALLED $34.21 $5,473.60 $18.92 $3,027.20 C9 2 L.S.UNDERDRAIN CLEANOUT $1,098.50 $2,197.00 $1,112.52 $2,225.04 C10 1 S.Y.SAFETY END TREATMENT $2,260.16 $2,260.16 $1,263.06 $1,263.06 C11 2905 S.Y.PAVEMENT REMOVAL, ASPHALT (~12")$8.65 $25,128.25 $13.08 $37,997.40 C12 290 S.F.PAVEMENT REMOVAL, CONCRETE $33.84 $9,813.60 $27.37 $7,937.30 C13 1465 S.F.UNCLASSIFIED EXCAVATION $27.83 $40,770.95 $37.64 $55,142.60 C14 365 S.F.UNSUITABLE EXCAVATION $29.16 $10,643.40 $61.80 $22,557.00 C15 3095 S.Y.LIME-TREATED SUBGRADE (12")$12.37 $38,285.15 $20.64 $63,880.80 C16 92 TON LIME $265.14 $24,392.88 $411.16 $37,826.72 C17 1 L.S.TEMPORARY EROSION CONTROL $23,233.99 $23,233.99 $49,459.92 $49,459.92 C18 3490 S.Y.CEMENT-TREATED BASE COURSE (10")$46.11 $160,923.90 $41.66 $145,393.40 C19 3065 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$171.20 $524,728.00 $167.73 $514,092.45 C20 425 S.F.PORTLAND CEMENT CONCRETE PAVEMENT (8" WITH COMPRESSION JOINT SEALANT)$115.40 $49,045.00 $127.13 $54,030.25 C21 160 S.F.PAVEMENT MARKINGS (YELLOW) WITH REFLECTIVE MEDIA $16.06 $2,569.60 $3.80 $608.00 C22 320 S.F.PAVEMENT MARKINGS (BLACK) WITHOUT REFLECTIVE MEDIA $13.82 $4,422.40 $3.80 $1,216.00 C23 100 ACRE PAVEMENT MARKING REMOVAL $5.66 $566.00 $3.80 $380.00 C24 80 S.Y.SEEDING $44.90 $3,592.00 $9.04 $723.20 C25 64 L.F.SODDING $7.88 $504.32 $15.01 $960.64 C26 560 L.F.NO. 8 AWG, 5 kV, L-824, TYPE C CABLE, INSTALLED IN TRENCH, DUCT BANK OR CONDUIT $4.76 $2,665.60 $3.19 $1,786.40 C27 200 L.F.NO. 6 AWG, SOLID, BARE COUNTERPOISE WIRE, INSTALLED IN TRENCH, ABOVE THE DUCT BANK OR CONDUIT, INCLUDING GROUND RODS AND GROUND CONNECTORS $4.76 $952.00 $3.35 $670.00 C28 200 L.F.NON-ENCASED, ELECTRICAL CONDUIT, 1-WAY 2"C $29.72 $5,944.00 $31.87 $6,374.00 C29 175 L.F.SCHEDULE 80 PVC ELECTRICAL CONDUIT, 1-WAY 1-1/2"C, MOUNTED TO SURFACE FOR TEMPORARY PHASING CONNECTIONS $29.72 $5,201.00 $14.34 $2,509.50 Part C - BASE BID - EAST GA APRON $1,107,769.68SUBTOTAL PART C - BASE BID - EAST GA APRON (C1 thru C29)$1,153,625.81 CCIA Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV Bid Tabulation Bids Opened: 2pm, June 12, 2019 2 of 3 TABULATED BY: Derek Mayo, P.E.BID DATE: June 12, 2019, 2:00 PM (Local Time) TIME OF COMPLETION: Base Bid: 270 Calendar Days ENGINEER'S ESTIMATE: $7,413,339.41 (ALL BID SCHEDULES) AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III AND EAST GA APRON PHASE IV PROJECT NO. 18148A & 18149A SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 D1 35 L.F.4 INCH PERFORATED UNDERDRAIN PIPE, INSTALLED $38.94 $1,362.90 $35.27 $1,234.45 D2 840 L.F.PAVEMENT REMOVAL, ASPHALT (~18")$10.65 $8,946.00 $17.85 $14,994.00 D3 165 L.F.UNCLASSIFIED EXCAVATION $31.32 $5,167.80 $29.67 $4,895.55 D4 45 S.Y.UNSUITABLE EXCAVATION $36.37 $1,636.65 $75.91 $3,415.95 D5 850 S.Y.CEMENT-TREATED BASE COURSE (10")$46.09 $39,176.50 $37.76 $32,096.00 D6 840 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$167.69 $140,859.60 $134.56 $113,030.40 D7 125 S.Y.SEEDING $28.37 $3,546.25 $6.67 $833.75 D8 35 S.Y.SODDING $7.62 $266.70 $17.34 $606.90 E1 820 EACH PAVEMENT REMOVAL, ASPHALT (~12")$8.37 $6,863.40 $11.90 $9,758.00 E2 340 EACH UNCLASSIFIED EXCAVATION $25.76 $8,758.40 $32.67 $11,107.80 E3 85 LF UNSUITABLE EXCAVATION $32.90 $2,796.50 $75.43 $6,411.55 E4 830 S.Y.LIME-TREATED SUBGRADE (12")$12.25 $10,167.50 $18.78 $15,587.40 E5 25 C.Y.LIME $256.74 $6,418.50 $374.04 $9,351.00 E6 825 C.Y.CEMENT-TREATED BASE COURSE (10")$45.62 $37,636.50 $37.97 $31,325.25 E7 820 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$168.63 $138,276.60 $149.69 $122,745.80 $435,283.00 $316,315.16 $5,472,297.71 $5,083,095.78 $1,153,625.81 $1,107,769.68 $7,061,206.52 $6,507,180.62 $200,962.40 $171,107.00 $210,917.40 $206,286.80 $7,473,086.32 $6,884,574.42 Designates Corrected Total Price - Error in Extensions TOTAL BASE BID + ADD. ALTERNATES I AND II TOTAL BID SCHEDULES SUMMARY $210,917.40 ADDITIVE ALTERNATE I Part D - ADDITIVE ALTERNATE I - TERMINAL APRON ADDITIVE ALTERNATE II Part E - ADDITIVE ALTERNATE II - EAST GA APRON TOTAL ADDITIVE ALTERNATE I - (PART D) TOTAL ADDITIVE ALTERNATE II - (PART E) TOTAL BASE BID - PART A TOTAL BASE BID - PART B GRAND TOTAL BASE BID TOTAL BASE BID - PART C BASE BID SUMMARY ADDITIVE ALTERNATE SUMMARY $206,286.80SUBTOTAL PART E - ADDITIVE ALTERNATE II - EAST GA APRON (E1 thru E7) SUBTOTAL PART D - ADDITIVE ALTERNATE I - TERMINAL APRON (D1 thru D8)$171,107.00$200,962.40 CCIA Rehabilitate Terminal Apron Phase III and East GA Apron Phase IV Bid Tabulation Bids Opened: 2pm, June 12, 2019 3 of 3 ITEM QTY.UNIT DESCRIPTION UNIT PRICE TOTAL PRICE UNIT PRICE TOTAL PRICE A1 1 L.S.01 29 01 MOBILIZATION (MAX 5%)$208,019.16 $208,019.16 $328,283.00 $328,283.00 A2 1 L.S.01 29 01 BONDS AND INSURANCE $96,713.00 $96,713.00 $100,000.00 $100,000.00 A3 1 L.S.01 29 01 OWNER'S PROTECTIVE INSURANCE $11,583.00 $11,583.00 $7,000.00 $7,000.00 B1 1 L.S.SITE PREPARATION $486,272.71 $486,272.71 $643,305.93 $643,305.93 B2 1 L.S.TRENCH AND EXCAVATION SAFETY SYSTEMS $1,521.24 $1,521.24 $977.48 $977.48 B3 1 L.F.LOCKOUT/TAGOUT AND CONSTANT CURRENT REGULATOR CALIBRATION PROCEDURES $7,260.34 $7,260.34 $11,889.02 $11,889.02 B4 14 L.F.EXISTING BASE MOUNTED EDGE LIGHT, REMOVED $379.08 $5,307.12 $1,188.90 $16,644.60 B5 10 L.S.L-861T BASE MOUNTED TAXIWAY EDGE LIGHT, INSTALLED $3,505.87 $35,058.70 $1,188.90 $11,889.00 B6 1 EACH TEMPORARY AIRFIELD LIGHTING $12,329.51 $12,329.51 $5,944.52 $5,944.52 B7 845 EACH 4 INCH PERFORATED UNDERDRAIN PIPE, INSTALLED $26.00 $21,970.00 $36.15 $30,546.75 B8 170 L.S.4 INCH NONPERFORATED OUTFALL PIPE, INSTALLED $17.12 $2,910.40 $32.91 $5,594.70 B9 4 LF UNDERDRAIN CLEANOUT $994.67 $3,978.68 $1,098.49 $4,393.96 B10 1 LF SAFETY END TREATMENT $1,263.06 $1,263.06 $2,260.16 $2,260.16 B11 19515 S.Y.PAVEMENT REMOVAL, ASPHALT (~18")$19.62 $382,884.30 $15.46 $301,701.90 B12 400 S.Y.PAVEMENT REMOVAL, CONCRETE (~15")$52.71 $21,084.00 $32.55 $13,020.00 B13 3795 L.F.UNCLASSIFIED EXCAVATION $34.13 $129,523.35 $26.24 $99,580.80 B14 950 L.F.UNSUITABLE EXCAVATION $59.97 $56,971.50 $25.10 $23,845.00 B15 1 S.Y.TEMPORARY EROSION CONTROL $63,272.82 $63,272.82 $55,246.49 $55,246.49 B16 19700 S.Y.CEMENT-TREATED BASE COURSE (10")$41.65 $820,505.00 $45.66 $899,502.00 B17 19515 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$149.07 $2,909,101.05 $166.68 $3,252,760.20 B18 1700 C.Y.PAVEMENT MARKINGS (YELLOW) WITH REFLECTIVE MEDIA $3.80 $6,460.00 $3.70 $6,290.00 B19 3410 C.Y.PAVEMENT MARKINGS (BLACK) WITHOUT REFLECTIVE MEDIA $3.80 $12,958.00 $3.60 $12,276.00 B20 500 C.Y.PAVEMENT MARKINGS (RED) WITHOUT REFLECTIVE MEDIA $3.80 $1,900.00 $2.95 $1,475.00 B21 2185 L.S.PAVEMENT MARKINGS (WHITE) WITH REFLECTIVE MEDIA $3.80 $8,303.00 $3.70 $8,084.50 B22 790 S.Y.TEMPORARY PAVEMENT MARKINGS (YELLOW) WITH REFLECTIVE MEDIA $3.80 $3,002.00 $3.80 $3,002.00 B23 2990 TON PAVEMENT MARKING REMOVAL $3.80 $11,362.00 $1.03 $3,079.70 B24 3225 S.Y.SEEDING $6.34 $20,446.50 $2.03 $6,546.75 B25 925 S.F.SODDING $14.28 $13,209.00 $6.33 $5,855.25 B26 2000 S.F.NO. 8 AWG, 5 kV, L-824, TYPE C CABLE, INSTALLED IN TRENCH, DUCT BANK OR CONDUIT $3.19 $6,380.00 $4.76 $9,520.00 B27 1075 S.F.NO. 6 AWG, SOLID, BARE COUNTERPOISE WIRE, INSTALLED IN TRENCH, ABOVE THE DUCT BANK OR CONDUIT, INC $3.35 $3,601.25 $4.76 $5,117.00 B28 1075 S.F.NON-ENCASED, SCHEDULE 40 PVC ELECTRICAL CONDUIT, 1-WAY 2"C $31.87 $34,260.25 $29.72 $31,949.00 C1 1 L.S.SITE PREPARATION $66,097.33 $66,097.33 $191,064.76 $191,064.76 CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III AND EAST GA APRON PHASE IV PROJECT NO. 18148A& 18149A SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 BASE BID PART A - GENERAL PROVISIONS - BOTH PROJECTS #18148A & #18149A SUBTOTAL PART A - BASE BID - GENERAL (Items A1 thru A3)$435,283.00$316,315.16 SUBTOTAL PART B - BASE BID - TERMINAL APRON (Items B1 thru B28)$5,472,297.71$5,083,095.78 Part B - BASE BID: TERMINAL APRON PHASE 3 ONLY - PROJECT #18148A CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III PROJECT NO. 18148A AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE EAST GA APRON PHASE IV PROJECT NO. 18149A SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 Part C - BASE BID - EAST GA APRON ONLY PROJECT #18149A C2 1 L.S.TRENCH AND EXCAVATION SAFETY SYSTEMS $1,521.24 $1,521.24 $450.52 $450.52 C3 1 S.Y.LOCKOUT/TAGOUT AND CONSTANT CURRENT REGULATOR CALIBRATION PROCEDURES $3,630.18 $3,630.18 $2,972.26 $2,972.26 C4 3 S.Y.EXISTING BASE MOUNTED EDGE LIGHT, REMOVED $408.06 $1,224.18 $1,188.90 $3,566.70 C5 3 C.Y.L-861T BASE MOUNTED TAXIWAY EDGE LIGHT, INSTALLED $3,505.87 $10,517.61 $1,188.90 $3,566.70 C6 1 C.Y.TEMPORARY AIRFIELD LIGHTING $12,329.51 $12,329.51 $5,944.52 $5,944.52 C7 65 S.Y.4 INCH PERFORATED UNDERDRAIN PIPE, INSTALLED $36.75 $2,388.75 $42.27 $2,747.55 C8 160 TON 4 INCH NONPERFORATED OUTFALL PIPE, INSTALLED $18.92 $3,027.20 $34.21 $5,473.60 C9 2 L.S.UNDERDRAIN CLEANOUT $1,112.52 $2,225.04 $1,098.50 $2,197.00 C10 1 S.Y.SAFETY END TREATMENT $1,263.06 $1,263.06 $2,260.16 $2,260.16 C11 2905 S.Y.PAVEMENT REMOVAL, ASPHALT (~12")$13.08 $37,997.40 $8.65 $25,128.25 C12 290 S.F.PAVEMENT REMOVAL, CONCRETE $27.37 $7,937.30 $33.84 $9,813.60 C13 1465 S.F.UNCLASSIFIED EXCAVATION $37.64 $55,142.60 $27.83 $40,770.95 C14 365 S.F.UNSUITABLE EXCAVATION $61.80 $22,557.00 $29.16 $10,643.40 C15 3095 S.Y.LIME-TREATED SUBGRADE (12")$20.64 $63,880.80 $12.37 $38,285.15 C16 92 TON LIME $411.16 $37,826.72 $265.14 $24,392.88 C17 1 L.S.TEMPORARY EROSION CONTROL $49,459.92 $49,459.92 $23,233.99 $23,233.99 C18 3490 S.Y.CEMENT-TREATED BASE COURSE (10")$41.66 $145,393.40 $46.11 $160,923.90 C19 3065 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$167.73 $514,092.45 $171.20 $524,728.00 C20 425 S.F.PORTLAND CEMENT CONCRETE PAVEMENT (8" WITH COMPRESSION JOINT SEALANT)$127.13 $54,030.25 $115.40 $49,045.00 C21 160 S.F.PAVEMENT MARKINGS (YELLOW) WITH REFLECTIVE MEDIA $3.80 $608.00 $16.06 $2,569.60 C22 320 S.F.PAVEMENT MARKINGS (BLACK) WITHOUT REFLECTIVE MEDIA $3.80 $1,216.00 $13.82 $4,422.40 C23 100 ACRE PAVEMENT MARKING REMOVAL $3.80 $380.00 $5.66 $566.00 C24 80 S.Y.SEEDING $9.04 $723.20 $44.90 $3,592.00 C25 64 L.F.SODDING $15.01 $960.64 $7.88 $504.32 C26 560 L.F.NO. 8 AWG, 5 kV, L-824, TYPE C CABLE, INSTALLED IN TRENCH, DUCT BANK OR CONDUIT $3.19 $1,786.40 $4.76 $2,665.60 C27 200 L.F.NO. 6 AWG, SOLID, BARE COUNTERPOISE WIRE, INSTALLED IN TRENCH, ABOVE THE DUCT BANK OR CONDUIT, INCLUDING GROUND RODS AND GROUND CONNECTORS $3.35 $670.00 $4.76 $952.00 C28 200 L.F.NON-ENCASED, ELECTRICAL CONDUIT, 1-WAY 2"C $31.87 $6,374.00 $29.72 $5,944.00 C29 175 L.F.SCHEDULE 80 PVC ELECTRICAL CONDUIT, 1-WAY 1-1/2"C, MOUNTED TO SURFACE FOR TEMPORARY PHASING CONNECTIONS $14.34 $2,509.50 $29.72 $5,201.00 D1 35 L.F.4 INCH PERFORATED UNDERDRAIN PIPE, INSTALLED $35.27 $1,234.45 $38.94 $1,362.90 D2 840 L.F.PAVEMENT REMOVAL, ASPHALT (~18")$17.85 $14,994.00 $10.65 $8,946.00 D3 165 L.F.UNCLASSIFIED EXCAVATION $29.67 $4,895.55 $31.32 $5,167.80 D4 45 S.Y.UNSUITABLE EXCAVATION $75.91 $3,415.95 $36.37 $1,636.65 D5 850 S.Y.CEMENT-TREATED BASE COURSE (10")$37.76 $32,096.00 $46.09 $39,176.50 D6 840 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$134.56 $113,030.40 $167.69 $140,859.60 D7 125 S.Y.SEEDING $6.67 $833.75 $28.37 $3,546.25 D8 35 S.Y.SODDING $17.34 $606.90 $7.62 $266.70 SUBTOTAL PART C - BASE BID - EAST GA APRON (C1 thru C29)$1,153,625.81$1,107,769.68 CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III PROJECT NO. 18148A SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 ADDITIVE ALTERNATE I Part D - ADDITIVE ALTERNATE I - TERMINAL APRON SUBTOTAL PART D - ADDITIVE ALTERNATE I - TERMINAL APRON (D1 thru D8)$200,962.40$171,107.00 ADDITIVE ALTERNATE II CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE EAST GA APRON PHASE IV PROJECT NO. 18149A AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 E1 820 EACH PAVEMENT REMOVAL, ASPHALT (~12")$11.90 $9,758.00 $8.37 $6,863.40 E2 340 EACH UNCLASSIFIED EXCAVATION $32.67 $11,107.80 $25.76 $8,758.40 E3 85 LF UNSUITABLE EXCAVATION $75.43 $6,411.55 $32.90 $2,796.50 E4 830 S.Y.LIME-TREATED SUBGRADE (12")$18.78 $15,587.40 $12.25 $10,167.50 E5 25 C.Y.LIME $374.04 $9,351.00 $256.74 $6,418.50 E6 825 C.Y.CEMENT-TREATED BASE COURSE (10")$37.97 $31,325.25 $45.62 $37,636.50 E7 820 S.Y.PORTLAND CEMENT CONCRETE PAVEMENT (15" WITH COMPRESSION JOINT SEALANT)$149.69 $122,745.80 $168.63 $138,276.60 Part E - ADDITIVE ALTERNATE II - EAST GA APRON SUBTOTAL PART E - ADDITIVE ALTERNATE II - EAST GA APRON (E1 thru E7)$210,917.40$206,286.80 TOTAL BASE BID - PART A (MOBILIZATION FOR PART B & C)$435,283.00$316,315.16 BASE BID SUMMARY CORPUS CHRISTI INTERNATIONAL AIRPORT REHABILITATE TERMINAL APRON PHASE III AND EAST GA APRON PHASE IV PROJECT NO. 18148A & 18149A AIRFIELD CONTRACTING 4477 EAST FIFTH AVENUE COLUMBUS, OH 43219 SPAWGLASS CIVIL CONSTRUCTION, INC. 13800 WEST ROAD HOUSTON, TEXAS 77041 TOTAL BASE BID - PART B (TERMINAL APRON #18148A)$5,472,297.71$5,083,095.78 TOTAL BASE BID - PART C (EAST GA APRON #18149)$1,153,625.81$1,107,769.68 GRAND TOTAL BASE BID $7,061,206.52$6,507,180.62 TOTAL ADDITIVE ALTERNATE I - (TERMINAL APRON #18148A)$200,962.40$171,107.00 ADDITIVE ALTERNATE SUMMARY TOTAL ADDITIVE ALTERNATE II - (EAST GA APRON #18149)$210,917.40$206,286.80 TOTAL BASE BID + ADD. ALTERNATES I AND II $7,473,086.32$6,884,574.42 TOTAL BID SCHEDULES SUMMARY DATE: September 25, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, Director, Development Services AlRaymond@cctexas.com (361) 826-3575 CAPTION: Ordinance abandoning and vacating a 10-foot wide by approximately 180-feet in length (1,800 sq. ft.) portion of an existing drainage easement out of Lots 3 & 4, Block 1, Padre Island - Corpus Christi Section E located at 15045 & 15041 Aruba Drive. (District 4) SUMMARY: MMIP, LLC is requesting the abandonment of an existing drainage easement. The drainage easement is located between two lots that are going to be combined into a single building lot through a re-platting of the property. The drainage easement will need to be closed to allow for the construction of new town homes or condominiums on the property. BACKGROUND AND FINDINGS: Mustang Engineering and Surveying on behalf of MMIP, LLC (owner) is requesting the city abandon and vacate a 10-foot-wide by approximately 180-feet in length drainage easement located at 15045 and 15041 Aruba Drive. The applicant is requesting the city close the drainage easement so they can build new town homes or condominiums on the property. Currently, the drainage easement runs between the two lots. A new plat combining the lots into a single building lot was taken to planning commission on October 2, 2019. The easement runs through the center of the re-platted property and will prevent the construction of the planned residential buildings unless it is closed. The property is zoned CR-1 and this zoning district allows for the construction of either town homes or condominium homes. The project engineer completed an elevation survey of the gutter line in the street and the survey showed that the elevation of the drainage easement is higher than the street gutter line. Any storm water runoff will not use the easement but will utilize the natural contour of the gutter system in place and will drain towards the catch basin further down the street. A utilities department engineer has reviewed the survey and agrees that the drainage easement is not required for storm water drainage along Aruba Drive. Easement closure for property located at 15045 & 15041 Aruba Drive AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of November 12, 2019 Second Reading Ordinance for the City Council Meeting of November 19, 2019 ALTERNATIVES: The combining of the two lots into a single building lot will allow the owner to develop the property in a manner that best suits them. If the closure of the drainage easement is denied, the property owner may choose not to develop the property, leaving the land vacant until such time that they are able to develop the property in such a way that the easement is not affected. FISCAL IMPACT: The City Code of Ordinances only requires an application fee to be paid in order to process an easement closure. There are no other land value fees associated with the closure of an easement. The applicant requesting the drainage easement closure has paid the required $530.00 application fee and the easement closure request has been processed in accordance with Section 49-12 of the City Code of Ordinances. Funding Detail: Fund: 4670 Development Services Organization/Activity: 11200 Special Services Mission Element: 888 Revenue Project # (CIP Only): N/A Account: 302112 Easement Closure RECOMMENDATION: The closure of the drainage easement will allow for the construction of town homes or condominium homes the applicant is seeking to build. The closure of the drainage easement will have no adverse effects on the surrounding lots and the elevation survey supplied by the applicant confirms storm water will flow downstream away from the properties in the vicinity of the closed drainage. The runoff will utilize the natural contour of the gutter system in place and will drain towards the existing catch basin further down the block. Staff supports the applicant’s request and recommends approval of the drainage easement closure. LIST OF SUPPORTING DOCUMENTS: Ordinance (with exhibit) Presentation Location Map Ordinance abandoning and vacating a 10-foot wide by approximately 180- feet in length (1,800 sq. ft.) portion of an existing drainage easement out of Lots 3 & 4, Block 1, Padre Island - Corpus Christi Section E located at 15045 & 15041 Aruba Drive. WHEREAS, pursuant to Corpus Christi Code 49-13, Mustang Engineering, on behalf of MMIP, LLC. (Owner) is requesting to abandon and vacate a 10-foot wide by approximately 180-feet in length (1,800 sq. ft.) portion of an existing drainage easement out of Lot 3 & 4, Block 1, Padre Island -Corpus Christi Section E located at 15045 & 15041 Aruba Drive. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. A 10-foot wide by approximately 180-feet in length (1,800 sq. ft.) portion of an existing drainage easement identified in exhibits A & B, located at 15045 & 15041 Aruba Drive, is abandoned and vacated by the City of Corpus Christi (“City”), subject to the Owner’s compliance with the conditions specified in Section 2 of this ordinance. Exhibit “A,” which is a metes and bounds description and field notes, “Exhibit B,” which is the graphical representation of the legal description, which are attached to and incorporated in this ordinance by reference as if it was fully set out herein in their entireties. The maintenance responsibilities for the vacated easement reverts to the Owner of the property. SECTION 2. The abandonment and vacation of the utility easement described in Section 1 of this ordinance is expressly conditioned upon the Owner’s compliance with the following requirements: a.Upon approval by the City Council and issuance of the ordinance, all grants of easement closure and specified conditions must be recorded at the Owners’ expense in the Official Deed and Map Records of Nueces County, Texas, in which the affected property is located, with a copy of the recording provided to the City. Failure to record within 180 days will hereby make the Ordinance null and void. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 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 Exhibit A Exhibit B City Council Presentation November 12, 2019 Easement Closure For Lots 3 & 4, Block 1, Padre Island Corpus Christi Section “E” (15045 & 15041 Aruba Drive) Vicinity Map 15041 & 15045 Aruba Dr Aruba Dr Aerial Overview 10’ Drainage Easement 15041 Aruba Dr 15045 Aruba Dr Down stream storm outlet Staff Recommendation Approval Detail Slide Flow Line Detail 10’ Drainage Easement 15045 Aruba Dr 15041 Aruba Dr Catch Basin DATE:October 4, 2019 TO:Peter Zanoni, City Manager FROM:Tammy Embrey, Director of Intergovernmental Relations tammye@cctexas.com 361-826-3622 STAFF PRESENTER(S): Name Title/Position Department 1.Tammy Embrey Director, IGR Communications and Intergovernmental Affairs OUTSIDE PRESENTER(S): Name Title/Position Organization 1. Snapper Carr Partner and General Counsel Focused Advocacy 2. Brandon Aghamalian Partner and President Focused Advocacy 3. Curt Seidlits Founder and CEO Focused Advocacy BACKGROUND: The 86th Session of the Texas Legislature is behind us. Intergovernmental Relations, along with City of Corpus Christi legislative consultants from Focused Advocacy in Austin will provide Council insights and lessons learned from the session. The presentation will also cover a forecast of the political environment and activity over the interim, but most importantly, what the next steps are that the city needs to be taking to prepare for the 87th Texas Legislative session which will take place January-May 2021. The Lt. Governor recently released the Interim Charges for the Senate Committees. Many of the same themes that we saw in the 86th Legislature are included in the Interim Charges such as limiting taxpayer funded lobbying, efforts to improve/strengthen SB 2, issues relating to public rights of ways for utilities. LIST OF SUPPORTING DOCUMENTS: PowerPoint – Lessons Learned from the 86 th Texas Legislature and Next Steps. Texas Legislature Next Steps Lessons learned from 86th Legislative Session and Next Steps AGENDA MEMORANDUM City Council Meeting of November 12, 2019 Legislative Agenda 86th Session of the Texas Legislature Mayor Joe McComb City Council Rudy Garza Jr., Council Member At-Large Paulette M. Guajardo, Council Member At-Large Michael Hunter, Council Member At-Large Everett Roy, Council Member District 1 Ben Molina, Council Member District 2 Roland Barrera, Council Member District 3 Greg Smith, Council Member District 4 Gil Hernandez, Council Member District 5 City Manager, Interim Keith Selman Assistant City Managers Mike Markle, Interim Constance Sanchez, Interim Mark Van Vleck Director of Intergovernmental Relations Tammy Kelch Embrey tammye@cctexas.com 361-695-9320 Corpus Christi is the heart of the Coastal Bend. As the largest economic engine in the region, Corpus Christi is home to the booming industrial complex that makes up the fourth largest port in the country by tonnage, and the nation’s largest energy port. The area continues to attract diverse industry partners. made up of refiners, chemical and bulk material manufactures, rig fabricators, energy providers, and supporting distribution and terminal facilities Corpus Christi is consistently one of the top 10 tourist destinations in Texas with eight miles of Gulf beaches and 1.5 miles of bay beaches. Corpus Christi offers a wide variety of attractions including the Texas State Aquarium, the USS Lexington Museum on the Bay, the South Texas Botanical Gardens, Schlitterbahn, live music venues, arts, cultural and historic sites and Whataburger Field. If the outdoors is more your flavor, Corpus Christi is widely known for some of the best fishing and birding on the Gulf Coast. For 10 years running, in a nationwide contest, Corpus Christi has won the title of “America’s Birdiest City”. In additional to traditional accommodations, the municipally-owned Corpus Christi Marina is in the heart of downtown on the Bayfront and can accommodate transient and long-term boating tenants. With more than 8 million visitors coming to enjoy the Coastal Bend every year, travel and tourism generates an annual economic impact of $1 billion to the Corpus Christi region. More than 1 in every 10 non- agricultural jobs in the region is related to the travel and tourism industry. Corpus Christi is also proud to support our military installations, personnel, contractors, and spouses. Since 1942, the City has been home to Naval Air Station Corpus Christi which supports the missions of the Chief of Naval Air Training (CNATRA), Navy Training Wing 4, the Corpus Christi Army Depot (CCAD), Marine Air Training Support Group 22 (MATSG 22), and the Defense Logistics Agency among the 41tenant commands and activities on base. NASCC is one of two Navy bases in the country to conduct primary flight training for Student Naval Aviators. Training Air Wing Four has been training the world's premier military pilots for decades and has trained notable pilots such as Astronaut John Glenn, Senator John McCain, and President George H.W. Bush. In addition, the Coast Guard Sector/Air Station Corpus Christi is located at Valent Hall on the grounds of Corpus Christi International Airport and is responsible for operations from Port O’Connor to the US/Mexico Border. According to the Texas Military Preparedness Commission, NASCC and CCAD are directly responsible for thousands of active duty, civilian and contractor jobs and has a $3.62 billion impact on the economy of Texas. To support the needs of the diverse industries located in the Corpus Christi area, we are proud to have two institutions of higher learning that are committed to providing the skilled workforce of tomorrow. Texas A&M University Corpus Christi is attracting a large percentage of first generation college students and is home to the Harte Research Institute and the Lone Star Unmanned Aerial System Center of Excellence and Innovation, one of only seven Federal Aviation Administration designated testing sites in the nation for unmanned aerial systems. Del Mar College is constantly growing and evolving to meet the workforce training needs of the area’s industrial and business partners as well as delivering quality academic courses to prepare students pursuing a degree. Corpus Christi is the regional water supplier to 18 cities and communities in seven counties in the Coastal Bend region (Aransas, Bee, Jim Wells, Kleberg, Live Oak, Nueces, and San Patricio counties). The customer base includes nearly 500,000 residents, as well as diverse businesses and industries. The City, the San Patricio Municipal Water District, the Port of Corpus Christi and Port Industries of the Coastal Bend are exploring an industrial desalination project to serve the expanded water supply demands of manufacturing and industrial growth in the Coastal Bend. Long- term, desal may become economically viable for municipal supply. Despite a brighter economic outlook, Corpus Christi remains challenged by aging infrastructure, including deteriorating streets, federally mandated requirements to upgrade water distribution and wastewater treatment systems, and the ravages of Hurricane Harvey on homes, businesses, structures and facilities. Decisions made in previous decades to restrict revenue growth limited the financial resources necessary to keep up with the demand for essential municipal services and adequately plan for a growing community. With limited revenue growth, the city was not able to adequately invest in maintaining and modernizing City infrastructure, buildings and community services. Those decisions have impacted today’s leaders and taxpayers. Residents today demand more from their City leaders – better and safer streets, appropriately staffed and equipped police, fire fighters and first responders, quality parks and libraries, responsive permitting, timely municipal services, and investment in economic incentives for better paying, job creating industries During the 86th Session of the Texas Legislature, the City of Corpus Christi will strive to protect local, community-based decision-making to serve our residents, our neighbors, our businesses, and our industries in the most efficient manner. Our leaders need the flexibility to be responsive to local needs and prioritize the essential services and programs the City delivers on a daily basis. Legislative Agenda 86th Session of the Texas Legislature PRIORITIES Preserving Local Decision-Making The City strongly supports the principles of local decision-making from residents, stakeholders and local elected officials who are most directly responsive to their neighbors. The City opposes undermining the principle of home rule, local control and opposes legislation that diminishes the authority of cities to regulate and manage their growth and development. The City strongly opposes legislation, especially revenue caps, that undermine the authority of local elected officials to establish budgets and generate revenues through authorized taxes, and user fees, to improve quality of life and secure the essential municipal services, personnel, facilities, and initiatives prioritized by local taxpayers. Oppose legislation that would erode the ability of a city to issue debt. Oppose legislation taking away local authority to draft bond and referendum ballot language and interjecting the State of Texas, an agency or statewide elected official into a local election process. The City opposes preemption of municipal authority to protect residential neighborhoods from activities that would degrade homeowner property values, and more specifically oppose eroding municipal authority related to development matters including annexation, eminent domain, land use planning and zoning, building codes and inspections, and tree preservation. Oppose state legislation that would erode the authority of a city to be adequately compensated for the use of its rights-of-way and/or erode municipal authority over the management and control of rights-of-way. Support for our Military Community and Installations The City supports legislation which protects the investments made by taxpayers in facilities, equipment, infrastructure, training of active duty and civilian personnel to fulfill the critical national security missions performed at military installations throughout Texas. Support Legislative Appropriations of $50 million for the Defense Economic Adjustment Assistance Grant (DEAAG) Program. Oppose legislation to offer local tax exemptions for wind energy developments near military installations. Protect provisions from Senate Bill 277 (85th Regular Session). Disaster Assistance and Emergency Management Reform Support appropriations from the Economic Stabilization Fund to assist local governments with recovery, mitigation, and resiliency projects following Hurricane Harvey or other natural disasters. Support legislation that will ensure affordable TWIA rates as well as encourage Texas private insurers to write policies equitably across the state, including windstorm policies in coastal communities. Oppose proposed 10 percent rate hike from the Texas Windstorm Insurance Association (TWIA) and remain actively engaged in the Sunset Commission review of TWIA. Environment Support restoration of funding for air quality monitoring and mitigations projects to enable Corpus Christi to remain in compliance with federal Clean Air Standards. Nueces River Authority Support Sunset Commission recommendations for Nueces River Authority. Oppose proposal to allow Governor to appoint the chairperson of the Nueces River Authority. ACTIVELY SUPPORT OR OPPOSE Education and Economic Competitiveness Support increased educational opportunities and job creation/retention for the residents of Corpus Christi and the Coastal Bend region through the Corpus Christi Regional Economic Development Corporation, Port of Corpus Christi Authority, pre-K-12 public schools, Del Mar College, Texas A&M University Corpus Christi (TAMUCC) and Texas A&M University Kingsville (TAMUK). The City supports an increase in the state’s share of public education, therefore reducing the property tax burden of local taxpayers, and updates to the state’s school funding system to include an increase in the basic allotment. Establish a well-funded pre-K-12 school finance system that: • requires locally collected tax revenue for education to stay in the local system; • includes education for all children starting in pre-k; • provides financial transparency and accountability to taxpayers for all education funds; • explores additional revenue sources aligned with enhanced outcomes and efficiencies, and • ensure student progress and post-secondary readiness with high levels of pre-K-12 academic rigor and accountability. The City supports enhanced formula and non-formula funding for Del Mar College, TAMUCC and TAMUK and authorizing Tuition Revenue Bonds for requested capital projects. Improve the higher education funding system to incentivize quality, workforce readiness, and certificate and degree completion. Meet industry workforce needs through alignment and expansion of trade and technical skills training, apprenticeships, internships, and work-based learning opportunities, along with funding for workforce Dual Credit programs, and Career and Technical Education (CTE) and industry-specific certifications and degrees. Protecting economic development tools that attract new jobs and companies to Texas, including but not limited to the Skills Development Fund, CPRIT, Sales and Use Tax Exemptions, Enterprise and Tax Increment Financing Districts, the film incentive fund, and other statues related to economic development such as Chapters 311, 312, 380, and 381. Oppose legislation that would limit the authority of Type A or Type B economic development corporations statewide. Oppose legislation that would limit or eliminate the current flexibility of the Major Events Reimbursement Program as a tool for cities to attract or host major events and conventions. Oppose proposals to use local Hotel Occupancy Taxes for non-tourism purposes Affordable Housing The City supports legislation that allows for flexible and innovative solutions to create local funding options to increase the supply of affordable housing for low to moderate income families. Transportation Preserve the billions of dollars in new road and highway funding added by Proposition 1 and Proposition 7 funding and ensuring the deferred payment authorized under the 85th legislative session is paid in full. Protect the local prioritization of policies and funding for improved transportation and additional transit options. Utilize new project delivery tools to allow for innovative and smart infrastructure financing and the use of innovative technologies that would not further obligate state funds. Develop roads and rail, as part of an integrated, multi-modal transportation network to maximize our state’s capacity to move people, goods and services throughout the state. Tourism Support retention of full State tourism funding. Protect existing authority to use Hotel Occupancy Tax revenues to construct a convention center hotel and oppose any restrictions, limitations or changes which would alter the existing authority. Positive changes to local Hotel Occupancy Tax laws to include expansion of sporting facilities category to include additional sports activities. Support $5 million Exceptional Item Request of Texas Commission on the Arts for new Cultural District designations. ENDORSEMENTS The City of Corpus Christi will coordinate with the following local stakeholders to endorse legislative priorities to promote the overall health and prosperity of the Coastal Bend region, provided they do not conflict with the City’s own legislative agenda. These entities may include, but not be limited to: United Corpus Christi Chamber of Commerce South Texas Military Facilities Task Force Corpus Christi Convention and Visitors Bureau Del Mar College Texas A&M University Corpus Christi Texas A&M University Kingsville Corpus Christi Regional Transportation Authority Corpus Christi Regional Economic Development Corporation Workforce Solutions of the Coastal Bend Corpus Christi Housing Authority Coastal Bend Council of Governments United Way of the Coastal Bend The following municipal advocacy or professional associations will adopt legislative priorities, which the City of Corpus Christi may endorse during the session, provided they do not conflict with the City’s own legislative agenda. These entities may include, but not be limited to: Texas Municipal League (TML) Texas Mayors of Military Communities (TMMC) Texas Police Chiefs Association Texas Fire Chiefs Association Texas Court Clerks Association (TCCA) Texas Municipal Courts Association Texas Court Clerks Association Texas Association of Municipal Information Officers (TAMIO) Texas Chapter American Planning Association Texas Coalition for Affordable Power (TCAP) Transportation Advocates of Texas (TAOT) Alliance for Interstate 69 Texas Texas Water Conservation Association (TWCA) Lone Star Chapter of the Solid Waste Association of North America (TXSWANA) Texas Chapter of American Shore and Beach Preservation Association (TXASBPA) Water Environment Association of Texas (WEAT) Texas Society of Certified Public Accountants Government Finance Officers Association of Texas (GFOAT) The following state agencies may adopt legislative priorities, which the City of Corpus Christi may endorse during the session, provided they do not conflict with the City’s own legislative agenda. These entities may include, but not be limited to: Texas Municipal Retirement System (TMRS) Texas Workforce Commission LESSONS LEARNED FROMTHE 86TH TEXAS LEGISLATURE ANDNEXT STEPS CITY OF CORPUS CHRISTI NOVEMBER 12TH, 2019 Brandon Aghamalian, Snapper Carr, Curtis Seidlits & Andrew Keefer OVERVIEW •Local strategies •State strategies •2019 Session Summary: •Leadership agendas •SB 2 / SB 29 •TWIA •Coastal Erosion (CEPRA) •Hotel and lodging •Other municipal issues (ROW, finance/debt, development and preemption) •Port of Corpus Christi •Annexation •Defense Economic Adjustment Assistance Grants (DEEAG) •Near non-attainment communities •Preemption bills that passed •Local strategies •State strategies •Next steps 2 LOOKING TOWARDS THE 87 TH LEGISLATURE: LOCAL STRATEGIES •Legislative delegation outreach •Invite them to be a part of the agenda setting process •Invite them to be a part of budget / implementation •Elevate issues during elections •Engage supporters to elevate issues / demonstrate community support •Chambers of Commerce •Community advocates (issue specific) •Vendors who do business with City •Other local governments (school, POCCA, county, etc.) •Engage legislative stakeholders •Builders •Realtors •Cable / Telecom 3 LOOKING TOWARDS THE 87 TH LEGISLATURE: STATE STRATEGIES •Re-engage with state leadership •Emphasize message of state/local partnership and symbiotic relationship •Discuss approach with community/business leaders •Participate / lead similarly situated “city coalition” efforts •Telecom / cable litigation •SB 29 •Texas Mayors of Military Communities •Enhanced coordination with TML / BCL •Greater strategic planning / communication during interim •Leadership and participation in regional TML meetings •Organize / host regional advocacy meetings 4 2019 LESSONS LEARNED •Very challenging session for cities; coordinating local support and building municipal partnerships is how to achieve success at the state level •Concentrated effort to interfere with city finances (revenue caps & issuance of debt) and municipal regulatory authority •In addition, there was a very strong push to silence your ability to petition (lobby) the state that fortunately failed •But we also experienced some successes this session 5 2019 TEXAS LEGISLATURE: BY THE NUMBERS 6 Year Total Bills Introduced Total Bills Passed City-Related bills introduced City-Related bills passed 76th-1999 5,813 1,622 1,230+130+ …………… 84th-2015 6,476 1,329 1,900+220+ 85th-2017 6,800 1,208 2,500+294 86th-2019 7,324 1,429 2,300+338 •3,970 Bills/JR’s filed in last 10 business days before filing deadline (54%) •Over 31% of all bills filed were city related bills, up from 17% from last session •2,740 Total Bills/JR tracked by Focused Advocacy THE LEADERSHIP AGENDAS 7 •Abbott Property tax reform, school finance reform, school safety, mental health, and disaster response •Patrick Property tax reform, school finance reform, free market protection, and taxpayer funded lobbying •Bonnen Property tax reform, school finance reform, school safety, and combating human trafficking REVENUE CAPS SB 2 •*City of Corpus Christi Legislative Priority* •Reduces the rollback rate (which is now referred to as the “voter approved” rate) from 8% to 3.5% (or “de minimus” rate) + unused increment rate (3-year “banking” provision) •Does not affect rates for debt •Rate that increase revenue by more than 3.5% trigger automatic election •Applies to cities with populations greater than 30,000 (about 100 cities); this application was strategic to gain the support of the majority of rural Texas cities—cities much smaller than Corpus Christi 8 WITNESSES/SUPPORTERS SB 2 9 1.Bates, Tray Texas Realtors, 1.Berlanga, Michael (Chamber of San Antonio) 2.Bohnert, Henry (Convention of States) 3.Caso, Kathleen (Lost Pines Republican Women, Bastrop Co Republican Precinct Chair 2009) 4.Dorsch, Barry (NE Tarrant TEA Party) 5.Fabry, Thomas (Frisco Tea Party) 6.Falk, Roger (Travis County Taxpayers Union) 7.Gilley, Rockie Kennedale city council 8.Ginn, Vance (Texas Public Policy Foundation) 9.Hale, Darrell Collin County Commissioner 10. Hill, Chris (Judge Collin County) 11. Johnson, Cheryl (Galveston County Tax Office) 12. Kecseg, Ross (Texans for Fiscal Responsibility) 13. LeBas, James (TXOGA) 14. Newton, Chris (Texas Apartment Association) 15. Ramos, Gilbert (Texas Patriots Tea Party) 16. Troxclair, Ellen Fmr. Austin City Council Member PREEMPTION BILLS THAT DID NOT PASS •The City of Corpus Christi voted to defeat municipal preemption legislation as a part the council-approved legislative agenda •No “super-preemption” bills •No preemption of short term rentals •No preemption of workplace bills passed (paid sick leave, etc.) •No bill passed preempting cities from petitioning their state government/participating in the legislative process (SB 29) 10 SB 29: NO TAXPAYER FUNDED LOBBYING •“The governing body of a political subdivision may not spend public money to directly or indirectly influence or attempt to influence the outcome of any legislation…” •Created a private cause of action wherein anybody could sue the city •Senate version: Applied to ALL political subdivisions; prohibited spending of money to join organizations that lobby (TML, TMCA, etc.) or spending money on lobbyists; all issues. •House version: Applies to cities, counties and toll authorities; prohibited spending of money to join organizations that lobby (TML, TMCA, etc.) or spending money on lobbyists; certain issues (taxes, bonds, ethics) 11 WITNESSES/SUPPORTERS SB 29 12 1.DeVore, Chuck, Vice President Texas Public Policy Foundation 2.Harper, Terry State Republican Party Executive Committee 21 Chair 3.Key, Todd H. (Northeast Tarrant Tea Party) 4.Baggett, Donnis Executive Vice President (Texas Press Association) 5.Belsick, Michael S. (Fredericksburg Tea Party) 6.Carter, David Election Judge (Republicans United for the Republican Party Platform & Priorities) 7.Gaines, Jimmy President (Texas Landowners Council) 8.Heimlich, Ed Executive Director (Citizens United 4 Accountable Government) 9.Hudgens, Nicole Senior Policy Analyst (Texas Values Action) 10. Keener, Justin Consultant (Americans for Prosperity) 11. Smith, Mary Virginia North Texas Director (Concerned Women for America) SB 2 & SB 29: SPKR. BONNEN / CHR. BURROWS QUOTES •SPEAKER BONNEN:”...Let me tell you something: In this office and in the conference room on that end, any mayor, county judge that was dumb ass enough to come meet with me,I told them with great clarity, my goal is for this to be the worst session in the history of the legislature for cities and counties.” •CHAIRMAN BURROWS:”I hope the next session's even worse.” •SPEAKER BONNEN:”And I'm all for that...” 13 SB 2 & SB 29: CHAIR BURROWS QUOTES •Burrows: "So taxpayer funded lobby is the benchmark next session.” (44:09)(page 42 line 21) •Burrows: "...we hate cities and counties."(50:35)(page 47 line 18) •Burrows: "I just want the local governments to have a worse session next session, by ending taxpayer funded lobby and stealing their two pennies…” (51:41)(page 48 line 15) 14 TEXAS WINDSTORM INSURANCE ASSOCIATION (TWIA) •*City of Corpus Christi Legislative Priority* •HB 1900 (Bonnen/ Taylor) – Omnibus TWIA Reform Bill. Requires replacement cost to be determined at the time of policy issuance and/or renewal •Creates a TWIA Legislative Funding and Funding Structure Oversight Board to (1) assess TWIA’s current funding and funding structure, (2) evaluate catastrophic risk pools in other states, (3) identify problems and recommendations regarding TWIA’s funding structure and sustainability; and (4) submit report by November 15, 2020 •TWIA Rate Hike Withdrawn. TWIA proposed a 10% rate increase to both residential and commercial policies in early August 2018. While the Legislature failed to enact any legislation specific to the rate increase, at the May 24 board meeting, TWIA withdrew the rate increase 15 TWIA •SB 615 (Buckingham/ Paddie) - TWIA Sunset Review •HB 1902 (Bonnen/Taylor) - TWIA liability limits •HB 1940 (Lucio III/Creighton) - Surplus Lines Coverage •HB 1944 (Lucio III/Hancock) – Deadline Extensions for claims and related settlement disputes 16 COASTAL EROSION •HB 6 - first time Coastal Erosion Planning & Response Act (CEPRA) received a dedicated funding source (since 1999); Approximately $92M in 2020-21 •Applies to coastal communities •Comptroller dedicated two percent from state Hotel Occupancy Tax located in coastal counties during the preceding state fiscal year and transfer that amount to the coastal erosion response account •Expires September 1, 2031 17 HOTELS, CONVENTION CENTERS AND TOURISM •Full funding for state tourism promotion -record-high amount of state funding of $110 million for the 2020-21 biennium (increase of 223%from the 2017 Session) •The Convention Center and Hotel Program is an option that has been maintained for the City Corpus Christi •*City of Corpus Christi Legislative Agenda* 18 RIGHT OF WAY / CABLE FRANCHISE FEES •SB 1152 – Cable & telecom providers no longer required to pay both cable and telecom ROW rental fees -- only pay the highest of the two; city currently collects both fees •$1.7 Million loss to City of Corpus Christi revenues •A coalition of cities have filed a lawsuit challenging this bill on a constitutional basis (the suit amends existing lawsuit challenging the 2017 “small cell” bill) 19 DEBT •HB 477 by Murphy - Requires a disclosure on ballot that “taxes will be used to pay the debt” and requires a voter guide plus a new notice requirements •SB 30 by Birdwell – Requires specific description for each bond proposition •*City of Corpus Christi Legislative Priority* 20 DEVELOPMENT BILLS •HB 2439 – Cities cannot adopt or enforce a regulation that restricts the use of a building product or material approved for use by a national code or establish a standard for a product, material, or aesthetic method in construction that is more stringent than the national code; the City of Corpus Christi can no longer enforce the island overlay requirements that were developed in response to island residents concerns •HB 852 - Building permit fees must be cost based - may not be tied to value, size or cost of construction •HB 3167 – Requires cities to approve/disapprove (vs. “act on”) subdivision plat applications within 30 days or it is considered approved 21 WITNESSES/SUPPORTERS HB 2439 22 1. Summers, Trey (Coastal Bend Home Builders Association) 2. Bulla, Cindi (Texas Realtors) 3. Chick, Craig (Safe Building Materials Association of Texas) 4. MacDonald, T. Justin (Texas Association of Builders) 5. Rodriguez, James (Fox Energy) 6. Bettis, William (Greater Ft Worth Builders Association) 7. Biggerstaff, Michael (HBA of San Angelo) 8. Bowling, Randy (El Paso Association of Builders) 9. Carlyle, Joe (City of Troup) 10.Carlyle, Joseph (Carlyle Homes) 11.Carothers, Jason (Carothers Executive Homes) 12.Christian, George (American Forest and Paper Association) 13.Dover, Alicia (Plumbing-Heating- Cooling Contractors Association of Texas) 14.Fairbanks, Lauren (Texas Association of Manufacturers) 15.Fisher, Jon (Associated Builders and Contractors of Texas) 16.Jackson, Tim (Dallas Builders Association) 17.Kercheval, Todd (Texas Affiliation of Affordable Housing Providers) 18.Lacy, Sarah (Texas Building Owners and Managers Association (Texas BOMA)) 19.Longacre, Rhett (Longacre construction) 20.McCarty, Austin (Texas Chemical Council) 21.McCord, Mia (Texas Conservative Coalition) 22.Mintz, David (Texas Apartment Association) 23.Morgan, Todd (International Paper Corp.) 24.Oswald, Bill (Koch Companies) 25.Pepper, Bradley (Greater Houston Builders Association) 26.Pilkington, Michael (Temple Area Builders Assoc.) 27.Townsen, Stewart (West Texas Home Builders Association) 28.Womack, Daniel (Dow Chemical) 29.Zapata, Mireya (Lumbermen's Association of Texas) PORT OF CORPUS CHRISTI •Legislation was filed to change the governance structure of the Port of Corpus Christi •All legislation filed to affect the Port of Corpus Christi failed to pass •The Port of Corpus Christi agreed to voluntarily adopt ethics provisions similar to filed legislation 23 ANNEXATION •*City of Corpus Christi Legislative Priority* •HB 347 passed; which ended annexation for all purposes in Texas except for the allowance of annexations where cities had already instructed the city manager to develop a service plan •Thus, Corpus Christi’s annexations in San Patricio County were allowed to be completed 24 DEFENSE ECONOMIC ADJUSTMENT ASSISTANCE GRANTS •General Appropriations Act (GAA; a.k.a. the state budget) includes a 50% increase in funding •”…$30,000,000 in General Revenue in fiscal year 2020 for DEAAG to military defense impacted communities” (GAA 2019) •The grant allows Corpus Christi to partner with the NAS and CCAD to make infrastructure improvements •*City of Corpus Christi Legislative Priority* 25 FUNDING FOR NEAR NONATTAINMENT CITIES •*City of Corpus Christi Legislative Priority* •The General Appropriations Act restored funding for air quality monitoring in near nonattainment communities •Programs funded by this program are instrumental for Corpus Christi’s compliance with Federal Clean Air Standards 26 PREEMPTION BILLS THAT PASSED •However, the state passed city preemption of: •building materials (HB 2439 by Phelan, 9/1/19) •“adverse” government action against a person for religious reasons (Chick fil A) (SB 1978 by Hughes, 9/1/19) •hire contingent fee attorneys without AG approval subject to appeal to SOAH (HB 2826 by Bonnen, 9/1/19) •new red light camera contracts (HB 1631 by Stickland, immediate effect) •weapons of any type (HB 3231 by Clardy, 9/1/19) •lemonade stand ordinances, (HB 234 by Krause, 9/1/19) •rabbit carcasses (HB 410 by White, 9/1/19) •farmers markets (HB 1694 by Lambert, 9/1/19 ) •most cottage food operations (SB 572 by Kolkhorst, 9/1/19) •electric bikes (HB 2188 by Frullo, 9/1/19) •dogs in outdoor portions of restaurants (SB 476 by Hancock, 9/1/19) •chickens 27 INTERIM CHARGES •On October 30th, 2019, Lieutenant Governor Patrick issued 116 charges to be studied by the 13 senate committees before the 2021 legislative session •Notable items include the review of SB 1004, HB 3, local economic development incentives, water supply and utility rate-making, SB 2, taxpayer lobbying and veteran affairs. •The Speaker of the House has not issued interim charges. 28 NEXT STEPS •Develop a plan to engage: •community and neighborhood leadership •regulatory stakeholders (i.e. – business/trade associations/etc.) •vendors who do business with city hall •TML •regional city (neighboring cities) •claw – back proposals •Local engagement is the key; we are most successful when we have partners with us. 29 THANK YOU QUESTIONS?