Loading...
HomeMy WebLinkAboutAgenda Packet City Council - 01/28/2020City Council City of Corpus Christi Meeting Agenda - Final-revised 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Council Chambers11:30 AMTuesday, January 28, 2020 Addendums may be added on Friday. A.Mayor Joe McComb to call the meeting to order. B.Invocation to be given by Pastor Rick Barrera, Believe Church. C.Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be led by Wesley Nebgen, Assistant Director of Maintenance of Lines, Water Utilities. D.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. E.Proclamations / Commendations 1.20-0148 Proclamation declaring February 1, 2020, "Know Your Numbers Day". 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: 2.20-0169 Regular Meetings of January 14, 2020 and January 21, 2020. I.BOARD & COMMITTEE APPOINTMENTS: 3.20-0075 Marina Advisory Committee (5 vacancies) Page 1 City of Corpus Christi Printed on 1/27/2020 January 28, 2020City Council Meeting Agenda - Final-revised Port of Corpus Christi Authority of Nueces County, TX (1 vacancy) J.EXPLANATION OF COUNCIL ACTION: K.CONSENT AGENDA: (ITEMS 4 - 20) Consent - Second Reading Ordinances 4.19-1761 Zoning Case No. 1119-01, SCCBH, LLC. (District 1). Ordinance rezoning property at or near 221 Kleberg Place from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District. Planning Commission and Staff recommend approval. Sponsors:Development Services 5.19-1762 Zoning Case No. 1119-02, H&P North Beach, LLC (District 1). Ordinance rezoning property at or near 202, 229, and 230 Kleberg Place from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. Planning Commission and Staff recommend approval. Sponsors:Development Services 6.19-1801 Zoning Case No. 1219-01, Paula Gaut Properties, Inc. (District 5). Ordinance rezoning property at or near 6734 Saratoga Boulevard (State Highway 357) from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. Planning Commission and Staff recommend Approval. Sponsors:Development Services 7.20-0013 Ordinance accepting a grant from the Flint Hills Resources 2019 Helping Heroes Program in the amount of $10,000 to purchase hazmat equipment; and appropriating the funds into the Fire Grant Fund. Sponsors:Fire Department 8.19-1542 Ordinance to appropriate (a) $148,509.14 interest earnings from Airport CIP Funds for City’s match for future FAA Grant Projects; (b) $3,119,110.54 interest earnings from Bond Proceeds for Public Health and Safety, Public Facilities, Parks and Recreation, and Street bond projects; (c) $3,553,010.17 interest earnings from Utility Revenue Bond Funds for Utility projects (d) $359,757.13 interest earnings from Specialty Bond Funds including Texas Military Preparedness Commission, Public Property Finance Contractual Obligations, Seawall, Type B Streets and Packery Channel for approved specialty projects; and (e) $955,002.37 in other unappropriated funds including street assessments, street closure fees and Federal Government reimbursements for Streets and Utilities projects; changing the FY 2020 Capital Improvement Budget adopted by Ordinance No. 031870 to increase expenditures accordingly. Sponsors:Office of Management and Budget Page 2 City of Corpus Christi Printed on 1/27/2020 January 28, 2020City Council Meeting Agenda - Final-revised 9.19-1185 Ordinance amending Corpus Christi Code of Ordinances to add Section 49-15 authorizing execution of easement encroachment licenses as an administrative remedy. Sponsors:Development Services 10.19-1809 Ordinance awarding a construction contract to R.S. Parker Construction, LLC for reconstruction of Newport Pass Road and Zahn Road with new concrete pavement in the amount of $1,337,185.02, located in Council District 4, effective upon issuance of notice to proceed, funding is available from Street Bond 2014, Proposition 2 and Water Utility Capital Program funds; and the FY 2020 Capital Budget is amended to add this project. Sponsors:Public Works/Street Department, Engineering Services and Contracts and Procurement 11.19-1375 Ordinance awarding a contract to HDR Engineering, Inc., for design, bid, and construction phase services for Packery Channel Dredging and Beach Nourishment in the amount of $ 392,736, located in Council District 4, effective upon issuance of notice to proceed, with funding available from Tax Increment Reinvestment Zone (TIRZ) No. 2 and State Hotel Occupancy Tax Reserve Funds upon approval of this ordinance to amend the budget. Sponsors:Parks and Recreation Department, Engineering Services and Contracts and Procurement 12.20-0017 Ordinance awarding eight Master Services Agreements (MSAs) for Bond 2020 and FY 2021 CIP feasibility studies in an amount not to exceed $3,600,000; three MSAs in the amount of $650,000 each to Freese and Nichols, HDR Engineering, and Urban Engineering for Street projects; two MSAs in the amount of $500,000 and $250,000, to Urban Engineering and LAN respectively for Utility Projects; and three MSAs in the amount of $300,000 each to Bath Engineering, LNV Inc. and Hanson Professional Services for Facility Projects, located city wide with funding available from Street Bond 2014 and FY 2020 Utility CIP; and amending the FY 2020 Capital Budget. Sponsors:Contracts and Procurement and Engineering Services 13.20-0025 Ordinance approving the Second Amended and Restated Stadium Lease Agreement with Corpus Christi Baseball Club, LP; appropriating funds in the amount of $2,000,000.00 from the Business and Job Development Fund to match a $1,000,000 allocation by Corpus Christi Baseball Club, LP, for improvements to Whataburger Field; and amending the operating and capital budget. Sponsors:Assistant City Manager Consent - Contracts and Procurement 14.20-0009 Motion authorizing a two-year service agreement with Miguel Hernandez Jr., dba Universal Tool and Die, of Corpus Christi, Texas, for a total amount not to exceed $90,000.00 for on-call fabrication, welding, and repair Page 3 City of Corpus Christi Printed on 1/27/2020 January 28, 2020City Council Meeting Agenda - Final-revised services for the Wastewater Division of the Utilities Department, effective upon issuance of notice to proceed, with first-year funding in the amount of $33,750.00 available in the Wastewater Fund. Sponsors:Utilities Department and Contracts and Procurement 15.20-0019 Motion authorizing a two-year supply agreement with DPC Industries, Limited Partnership of Houston Texas, for an amount not to exceed $579,162.80, for the purchase of Liquid Chlorine in Railcars to be used during the water treatment process as the primary disinfectant at O.N. Stevens Water Treatment Plant, effective upon issuance of notice to proceed, with FY2020 funding in an estimated amount of $193,054.26 available through the Water Fund. Sponsors:Utilities Department and Contracts and Procurement 16.20-0012 Motion authorizing a two-year supply agreement with Southern Ionics Inc., of West Point, Mississippi, in an amount not to exceed $1,221,677.00, for the purchase of Sodium Bisulfite to be used by the Wastewater Division of the Utilities Department to dechlorinate wastewater, effective upon issuance of notice to proceed, with first-year funding in the amount of $610,838.00 available in the FY 2020 Wastewater Fund. Sponsors:Utilities Department and Contracts and Procurement 17.20-0074 Motion authorizing a three-year service agreement with Smart Plumbing, Incorporated of Corpus Christi, Texas with an amount not to exceed $626,643.75, to perform on-call plumbing repair services to City owned facilities, effective upon issuance of notice to proceed, with FY 2020 funding in an estimated amount of $139,254.17 available through the Facility and Property Management Fund. Sponsors:Asset Management Department and Contracts and Procurement Consent - Capital Projects 18.20-0057 Motion awarding a contract to Urban Engineering for design, bid, and construction phase services for the Packery Channel Waterline project in the amount of $195,630.00, located in City Council District 4, effective upon notice to proceed, with funding approved and available from FY 2019 Water Capital Improvement Program. Sponsors:Engineering Services, Utilities Department and Contracts and Procurement General Consent Items 19.20-0036 Resolution identifying City matching funds of $7,600,000 from the Stormwater Capital Improvement Program (CIP) for the Texas General Land Office Community Development & Revitalization grant application for La Volla Creek drainage improvements. Sponsors:Utilities Department Page 4 City of Corpus Christi Printed on 1/27/2020 January 28, 2020City Council Meeting Agenda - Final-revised 20.20-0100 Resolution determining the public necessity and public use for the acquisition of fee simple property rights for a public improvement project known as the La Volla Creek Detention Pond Project; authorizing negotiation to acquire the property interests; authorizing condemnation by eminent domain to acquire fee simple property interests in approximately 132 acres of land owned by Lands Greenwood 2018 LLC located near the intersection of Saratoga Boulevard and Greenwood Drive . Sponsors:Utilities Department L.RECESS FOR LUNCH M.PUBLIC HEARINGS: (ITEMS 21 - 22) 21.20-0083 Ordinance renewing the Corpus Christi curfew for minors ordinances as mandated every three years per the Local Government Code. Sponsors:Police Department 22.20-0058 Ordinance amending the London Area Wastewater Master Plan, an element of the Comprehensive Plan, to provide wastewater service to approximately 144 acres of land located immediately west of the existing London Area Wastewater Master Plan Area; amending related elements of the Comprehensive Plan; and providing for publication. (Located near Council District 3) Sponsors:Planning & Environmental Services N.REGULAR AGENDA: (NONE) O.FIRST READING ORDINANCES: (NONE) P.BRIEFINGS: (ITEM 23) 23.20-0037 Briefing of the findings from the recent Alternative Utility Financing study and potential alternative options for managing infrastructure development. Sponsors:Development Services Q.EXECUTIVE SESSION: (ITEMS 24 - 25) 24.20-0159 Executive session pursuant to Texas Government Code 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning the lawsuit of Richard Salazar v. City of Corpus Christi Officer Cantu and Officer DeLeon and the potential approval of settlement(s), attorney’s fees, expert fees, and/or expenses in said case. 25.20-0179 Executive session pursuant to Texas Government Code § 551.074 (Personnel Matters) to deliberate the appointment, employment, evaluation, reassignment, duties or discipline of City Auditor. Page 5 City of Corpus Christi Printed on 1/27/2020 January 28, 2020City Council Meeting Agenda - Final-revised R.IDENTIFY COUNCIL FUTURE AGENDA ITEMS S.ADJOURNMENT Page 6 City of Corpus Christi Printed on 1/27/2020 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com City of Corpus Christi Meeting Minutes City Council 11:30 AM Council ChambersTuesday, January 14, 2020 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 Reverend Bruce Wilson, Chaplain Corpus Christi Metro Ministries. B. Reverend Bruce Wilson gave the invocation. Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be led by Constance Sanchez, Chief Financial Officer. C. Constance Sanchez 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 January 14, 2020, "Vision Zero Kickoff Day". Proclamation declaring January 20, 2020, "Martin Luther King Holiday Celebration and Commemorative March Day". Proclamation declaring January 2020, "Human Trafficking Awareness and Prevention Month". Presentation of Awards Ceremony for "Mayor's Battle of the Bulbs". The proclamations were presented and the presentation made. Page 1City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes DeclarationsF. 2.Resolution declaring Corpus Christi as a Vision Zero community with a commitment to save lives and decrease roadway and waterway accidents. Mayor McComb referred to Item 2. There were no comments from the Council or the public. Council Member Molina made a motion to approve the resolution, seconded by Council Member Garza. This Resolution was passed and approved with the following vote: Aye: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: 031976 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. 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. Naina Gressett, Sunrise Beach RV Park resident; Angela Snider, Sunrise Beach RV Park resident; Mary Murphy; Sunrise Beach RV Park resident; Regina Trevino, 7606 Clear Creek Dr.; Clarissa Guidry, 121 South Bee St., Mathis, TX, spoke in opposition to Item 16, a proposed ordinance to revise fees for Sunrise Beach camp sites. Joan Veith, 574 Cain Dr.; Gloria Scott, 4422 S. Alameda St.; Terry Mills, 1519 N. Chaparral St.; Shirley Thornton, 1917 Woodcrest Dr.; Jacqueline Galvan, 409 Cape Lookout Dr.; and Claude Axel, 741 Crestview Dr., spoke in support of Item 5, a proposed ordinance designating Martin Luther King, Jr. Day as an official city holiday. John Clapp, 15517 Palmira Ave., and Chul Kim McGuire, 15533 Dyna St., spoke regarding the need to address increased crime on the Island. Henry Dornak, 14334 Bluefish St., spoke regarding the need for a General Aviation airport in Page 2City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Corpus Christi. Janet Maxwell, 4350 Ocean Dr., spoke in support of Item 46, regarding a preliminary application to rename William Street to Lomax Street. Daniel Pena, 2813 Hulbirt St., with the Hillcrest Residents' Association, spoke regarding concerns related to planning for the Hillcrest neighborhood and requested that the Hillcrest neighborhood be included in the increased police presence to be funded by the $50,000 grant in the ordinance proposed in Item 48. Barbara Handy, 2113 Coleman Ave., and Rolando Garza, Saxet Heights, thanked the Council for listening regarding a proposed homeless shelter in the Lamar Elementary Building and for walking that neighborhood. Margareta Fratila, 3606 Tripoli Dr., thanked the city manager in relation to the recent resignation of a city employee in relation to previous problems regarding city water service; high utility bills and related collection efforts; and advocated that property owners should not have to pay outstanding utility bills created by individuals who rent their properties. Lamont Taylor, 522 Hancock Ave., spoke regarding the impact of the Harbor Bridge project on affected areas; the Westside Development Plan; and advocated for not separating the Washington Coles and Hillcrest neighborhoods. John Medina, 4931 Mokry Dr., spoke regarding concerns relating to the condition of residential streets and the Harbor Bridge project. CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS:H. Mayor McComb deviated from the agenda and referred to City Manager's Comments. City Manager Peter Zanoni reported on the following topics: OTHERa. 1) In February 2020, the city manager will provide the Council with a progress report on the City's key budget initiatives and first quarter financial report. 2) The Request for Qualifications related to North Beach is to be released Monday, January 27, 2020. 3) The Airport Services Task Force will hold its first meeting, to discuss how to improve air service in Corpus Christi, on Wednesday, January 22, 2020. 4) Water rights and discharge permit applications related to desalination are to be submitted to the Texas Commission on Environmental Quality this week. 5) The Council will be provided with a progress update on the analysis of the City's utility trust funds and related recommendations on January 28, 2020. 6) Council Member Molina will host a Facebook Live event to update the community on the progress related to the Cole Park Pier. 7) The City Manager recognized Chief Financial Officer Constance Sanchez for having been awarded the YWCA Women in Careers Award. 8) The City is currently accepting applications for the Emerging Professional High School Program. 9) The Islander's mens and womens basketball teams are hosting a City of Corpus Christi employee appreciation day on Saturday, January 18, 2020. BRIEFINGS: (ITEM 51)Q. 51.This is the 2020 First Quarter Update to City Council on the Harbor Bridge Replacement Project. Mayor McComb deviated from the agenda and referred to Item 51. Lynn Allison, Harbor Bridge Public Information Coordinator presented information on the following topics: an agenda of the presentation; the Page 3City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes project's scope; existing bridge fits under the new bridge; bridge aesthetics; bridge lighting features; bridge belvedere; new lane configuration; future traffic patterns; and project communications. John Palmer, Harbor Bridge Project Deputy Project Manager, presented information on the following topics: construction update; project sections; Robstown pre-cast yard; North Beach roadworks - US 181 traffic switch; north approach; cable stay bridge towers; south approach; south roadworks - shared use path and direct connector bridges coming together at Salt Flat Channel; south roadworks; Staples Street bridge reconstruction; Port Avenue bridge reconstruction; Nueces Bay Boulevard bridge reconstruction; IH 37 traffic switch; traffic impacts; and utility and drainage work. Daryl Chambers, Harbor Bridge Project Traffic Engineering Manager, presented information on the following topics: ongoing/upcoming traffic impacts - US 181, IH 37 and SH 286. Council members and Ms. Allison, Mr. Palmer, Mr. Chambers and Dr. Lon Grassman, Harbor Bridge Project Environmental Compliance Manager, discussed the following topics: on what parts of the project work has been suspended; the engineering firm terminated by the Texas Department of Transportation (TXDOT) related to the bridge's main span; the safety of the bridge's main span; the percentage of the project that the main span represents; that the bridge's estimated completion date is not known; steps being taken to replace the engineering firm of record related to the bridge's main span; that that engineering firm was a subcontractor of Flatiron Dragados; how damage to homes caused by the project is being addressed; if the design work to date is correct/safe and the process TXDOT uses to verify same; that design-build work is moving forward with all but the main span; a request that monthly updates on the status of the new Harbor Bridge be provided to Council; the number of companies to choose from to replace the engineering firm that will be responsible for the integrity of the bridge's main span; not wanting to have a repeat of the bridge collapse in Florida; if the issues surrounding the main span of the bridge will increase the overall cost of the bridge; traffic studies completed to date and if they have been shared with the City; a desire that traffic studies be shared with the City; the impact on the completion timeline of terminating the engineering firm responsible for the main span of the bridge; that Flatiron Dragados is unclear how far behind the project now is; a request to update a sign from Martin Luther King Drive to Martin Luther King, Jr. Drive; flooding concerns related to the area of Leopard Street and the Crosstown Expressway; that US 181 will run under Leopard St.; increased stormwater volume capacity on Leopard Street; the status of the North Beach wetlands area; and a request that the status of the North Beach wetlands area be included in the previously requested monthly report to Council. EXECUTIVE SESSION: (ITEM 52)R. Mayor McComb deviated from the agenda and referred to Executive Session Item 51. The Council went into executive session at 1:55 p.m. The Council returned from executive session at 2:45 p.m. 52.Executive session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to Page 4City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes consult with attorneys concerning legal issues related to computer security matters and pursuant to Texas Government Code §§ 551.076 and 551.089 to discuss a security audit, security assessments or deployments relating to information resources technology, network security information, and the deployment, or specific occasions for implementation, of security personnel, critical infrastructure, or security devices. This E-Session Item was discussed in executive session. RECESS FOR LUNCHM. The recess for lunch was held during Executive Session Item 52. MINUTES:I. 3.Regular Meetings of December 10, 2019 and December 17, 2019. Mayor McComb referred to Item 3. A motion was made by Council Member Garza, seconded by Council Member Roy, that the Minutes be passed. The motion carried by a unanimous vote. BOARD & COMMITTEE APPOINTMENTS:J. 4.Corpus Christi Regional Economic Development Corporation (1 vacancy) Ethics Commission (1 vacancy) Library Board (6 vacancies) Sister City Committee (3 vacancies) Watershore and Beach Advisory Committee (6 vacancies) Mayor McComb referred to Item 4. Corpus Christi Regional Economic Development Corporation City Secretary Rebecca L. Huerta announced that Margaret Dechant had withdrawn from consideration. Council Member Hunter made a motion to reappoint Chad Magill (City), seconded by Council Member Garza and passed unanimously. Ethics Commission Council Member Smith nominated David J. Bendett. Council Member Hernandez nominated Ed Bennett. David J. Bendett was appointed with Mayor McComb and Council Members Guajardo, Barrera, Hunter, Molina, Smith, Roy and Garza voting for David J. Bendett and Council Member Hernandez voting for Ed Bennett. Library Board Page 5City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Council Member Molina made a motion to reappoint Nicole Carroll, Candace S. Hart, Vickie C. Natale and Julie T. Rogers, seconded by Council Member Garza and passed unanimously. Sister City Committee Council Member Molina made a motion to appoint John Garcia, Juan S. Garzon Coronado and Jason Page, seconded by Council Member Guajardo and passed unanimously. Watershore and Beach Advisory Committee Council Member Smith made a motion to reappoint Meredith Darden (CVB), Daniel E. Mazoch (Engineer), Mukesh Subedee (Environmentalist) and Philippe Tissot (Regular Member), seconded by Council Member Guajardo and passed unanimously. Council Member Smith nominated Harrison A. McNeil (Regular Member). Council Member Guajardo nominated Larisa A. Ford (Regular Member). Council Member Hernandez nominated Christopher P. Stevenson (Regular Member). Harrison A. McNeil (Regular Member) and Larisa A. Ford (Regular Member) were appointed with Mayor McComb and Council Members Garza, Roy, Smith, Molina, Hunter, Barrera and Guajardo voting for both Harrison A. McNeil (Regular Member) and Larisa A. Ford (Regular Member), and Council Member Hernandez voting only for Christopher P. Stevenson (Regular Member). EXPLANATION OF COUNCIL ACTION:K. CONSENT AGENDA: (ITEMS 5 - 40)L. Approval of the Consent Agenda Mayor McComb referred to the Consent Agenda. Council Member Molina announced he was abstaining on Item 33. Council members requested that Items 5, 16, 31, 32, 33, 39 and 41 be pulled for individual consideration. A council member recognized the large number and dollar amount of grant-related items on the consent agenda. There were no comments from the public. A motion was made by Council Member Smith, seconded by Council Member Garza, to approve the Consent Agenda. The motion carried by the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 9 - Abstained:0 Second Reading Ordinances - Consent Page 6City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes 6.Zoning Case No. 1019-06, Rogerio and Maria E. Lopez (District 3). Ordinance rezoning property at or near 3046 Holly Road from the “RS-6” Single-Family 6 District to the “CN-1” Neighborhood Commercial District. Planning Commission and Staff recommend approval. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031978 7.Ordinance amending Wastewater Collection System Master Plan for the Allison W.W.T.P Service Area for Calallen South located on the east frontage of US 77 just south of County Road 52; amending Comprehensive Plan; and providing publication (Council District 1). This Ordinance was passed on second reading on the consent agenda. Enactment No: 031979 8.Ordinance amending Wastewater Collection System Master Plan, Oso W.R.P. Service Area, Sub Basin SPA 30 for Airline Crossing Unit 3 located west of Airline Road off Lipes Boulevard; amending Comprehensive Plan; and providing publication (Outside City limits near Council District 5). This Ordinance was passed on second reading on the consent agenda. Enactment No: 031980 9.Ordinance amending Ordinance No. 031927, which created Reinvestment Zone Number Four, City of Corpus Christi, Texas, to correct the Tax Increment Base for the Zone by replacing Exhibit D; and approving the amendments to the Tax Increment Reinvestment Zone #4 Amended Project & Financing Plans approved by the Board of Directors of Reinvestment Zone Number Four, Corpus Christi, Texas, regarding additional ad valorem property values within the zone, and other matters relating thereto. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031981 10.Ordinance accepting a $282,848.09 grant from State of Texas, Criminal Justice Division for Victims of Crime Act Outreach Program with City match of $61,112.03 and in-kind match of $9,600 from Police General Fund; appropriating the $282,848.09 in Police Grants Fund; authorizing transfer of $61,112.03 from the Police General Fund to the Police Grants Fund and appropriating the same for total project cost of $353,560.12, and authorizing a staff complement of 3 FTEs. This Ordinance was passed on second reading on the consent agenda. Page 7City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Enactment No: 031982 11.Ordinance authorizing the acceptance of two grants totaling $333,666.41 from the Office of the Texas Governor- Homeland Security Grant Division, Homeland Security Grant Program for hazmat team enhancement and SWAT equipment; and appropriating $333,666.41 in the Fire Grants Fund. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031983 12.Ordinance appropriating $33,926.39 from the City of Corpus Christi-Nueces County Local Emergency Planning Committee (LEPC) Reserve Fund to supplement and expand community information programs and projects; and amending the FY2019-2020 operating budget adopted by Ordinance 031870 to increase expenditures by $33,926.39. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031984 13.Ordinance accepting a grant from the Flint Hills Resources 2019 Helping Heroes Program in the amount of $3,000 to be used to support the Corpus Christi - Nueces County Local Emergency Planning Committee; and appropriating the funds into the LEPC Fund No. 6060. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031985 14.Ordinance authorizing execution of all documents necessary to accept, amend and appropriate a grant contract for the Tuberculosis Prevention and Control-Federal (TB/PC-FED) grant in the amount of $48,345 with a City match of $9,669 to provide tuberculosis prevention and control services, and authorizing a staff complement of 1 FTE. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031986 15.Ordinance abandoning and vacating a 10-foot wide by approximately 703-feet in length (7,048.1 sq. ft.) existing utility easement out of Lot 2B and Lot 2C, Block 1, SWACO Tract, located at 1706 Saratoga Boulevard. (District 3) This Ordinance was passed on second reading on the consent agenda. Enactment No: 031987 Contract and Procurement - Consent Page 8City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes 17.Motion authorizing a two-year service agreement, with one additional one-year option with Unique Employment, LTD. of Corpus Christi, Texas in an amount not to exceed $500,000.00 for the initial term and a total potential contract value not to exceed $750,000.00, for temporary staffing services to be used by various departments with prior approval from Human Resources on an as needed basis, effective upon issuance of a letter of acceptance, with FY 2020 funding available from various funds departmental funds. This Motion was passed on the consent agenda. Enactment No: M2020-001 18.Motion authorizing a lease-purchase of four 2019 Freightliner 114SD combination sewer vacuum trucks, as additions to the fleet for the Water Utilities Department that will be used to clean wastewater lines throughout the City, to be purchased from Houston Freightliner, Inc. of Houston, Texas, in an amount not to exceed $1,680,334.20, effective upon issuance of letter of acceptance, with FY 2020 funding in an estimated amount of $224,044.56 available through the Wastewater Fund. This Motion was passed on the consent agenda. Enactment No: M2020-002 19.Motion authorizing a lease-purchase of four 2019 Ford E-450 Cutaway Closed Circuit Television (CCTV) vans, as additions to the fleet for the Utilities Department to inspect various wastewater lines throughout the City, to be purchased from Silsbee Ford of Silsbee, Texas, in an amount not to exceed $1,043,654.93 effective upon issuance of letter of acceptance, with FY 2020 funding in an estimated amount of $139,153.99 available through the Wastewater Fund. This Motion was passed on the consent agenda. Enactment No: M2020-003 20.Resolution authorizing a three-year service agreement with Doggett Heavy Machinery Services, LLC for an amount not to exceed $238,200.00 for off-site repairs at vendor’s facility of John Deere construction equipment for Asset Management, effective upon notice to proceed, with FY 2020 funding in an estimated amount of $66,166.67 available through the Fleet Maintenance Service Fund. This Resolution was passed on the consent agenda. Enactment No: 031989 21.Motion authorizing a two-year supply agreement with Polydyne, Inc., of Riceboro, Georgia, in an amount not to exceed $1,600,800.00 for liquid Page 9City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes cationic polymer to be used as a coagulant at the O.N. Stevens Water Treatment Plant for the treatment process of potable water, effective upon issuance of notice to proceed, with FY 2020 funding in an estimated amount of $600,300.00 available through the Water Fund. This Motion was passed on the consent agenda. Enactment No: M2020-004 22.Motion authorizing a three-year supply agreement with Arguindegui Oil Co. II, Ltd., of Laredo, Texas, in an amount not to exceed $112,858.20 for the supply and delivery of full synthetic 0W20 motor oil to the Corpus Christi International Airport’s Quick Turn-Around Facility as a pass-through expense at market cost to rental car tenants, effective upon issuance of notice to proceed, with funding in FY 2020 in the amount of $31,349.50 available through the Airport CFC Fund. This Motion was passed on the consent agenda. Enactment No: M2020-005 23.Motion authorizing a two-year service agreement with three one-year options for a total amount not to exceed $ 370,000.00 for the initial term and a total potential value not to exceed $925,000.00, with Gourley Contractors, LLC of Corpus Christi, Texas for Electrical Services to City occupied facilities for maintenance repairs and new installations for Asset Management, with FY 2020 funding in an estimated amount of $138,750.00 available through the Facility and Property Management Fund. This Motion was passed on the consent agenda. Enactment No: M2020-006 24.Motion authorizing two, three-year service agreements for a combined total amount not to exceed $630,000.00, with Turn Key Transmission & Auto Service of Corpus Christi, Texas, in an amount not to exceed $378,000.00 as the primary provider and Rittgers’ Services, Inc. dba Greatstate Transmission of Corpus Christi, Texas, in an amount not to exceed $252,000.00 as the secondary provider, for off-site transmission repairs for vehicles up to 14,000 lbs. Gross Vehicle Weight Rating, with FY 2020 funding in an amount of $157,500.00 available through the Fleet Maintenance Service Fund. This Motion was passed on the consent agenda. Enactment No: M2020-007 25.Motion authorizing a three-year service agreement with Moreno’s Auto Glass Inc., dba Mo Glass of Corpus Christi, TX, for a total amount not to exceed $256,500.00 for windshield repair and replacement for Fleet Page 10City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes vehicles, effective upon issuance of a notice to proceed, with FY 2020 funding in the amount of $71,250.00 available through the Fleet Maint Svc Fund. This Motion was passed on the consent agenda. Enactment No: M2020-008 26.Motion authorizing a two-year service agreement with three one-year options for a total amount not to exceed $240,000.00 for the initial term and a total potential value not to exceed $600,000.00, with Allison Flooring America of Corpus Christi for Flooring Services to City occupied facilities for Asset Management, with FY 2020 funding in an estimated amount of $90,000.00 available through Facility and Property Management Fund. This Motion was passed on the consent agenda. Enactment No: M2020-009 27.Motion authorizing a three-year supply agreement with Ferguson Enterprises, LLC. of Corpus Christi, Texas, in an amount not to exceed $91,657.51 for the purchase of spray marking paint for the City Warehouse as a central distribution for City departments, effective upon issuance of notice to proceed, with funding in the amount of $21,641.35 available in the FY 2020 Stores Fund. This Motion was passed on the consent agenda. Enactment No: M2020-010 28.Motion authorizing a three-year supply agreement with International Corrosion Control, Inc., of Lewiston, New York for a total amount not to exceed $171,492.00 for the purchase of magnesium anodes for the City Warehouse as a central distribution for the Gas Department to provide cathodic protection for corrosion control of underground gas pipelines, effective upon issuance of a notice to proceed, with FY 2020 funding in the amount of $57,164.00 available through the Stores Fund. This Motion was passed on the consent agenda. Enactment No: M2020-011 29.Motion authorizing a five-year service agreement with Lytx, Inc. of San Diego, California in an amount not to exceed $267,962.90 for the purchase of the DriveCam Program including event recorders, subscription, hardware, installation, set up, and training services for Solid Waste Services and Risk Management, a division of the Legal Department, to be utilized by Solid Waste Services and various other departments in fleet vehicles, effective upon issuance of notice to proceed, with FY 2020 funding in an estimated amount of $59,049.80 Page 11City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes available through the General Fund and the General Liability Fund. This Motion was passed on the consent agenda. Enactment No: M2020-012 30.Resolution authorizing a five-year service agreement with Selectron Technologies, Inc. of Portland, Oregon in an amount not to exceed $138,300.00 for the purchase of PremierPro support and maintenance services for the Interactive Voice Response (IVR) phone system for the Communications Department, effective upon issuance of notice to proceed, with FY 2020 funding in an estimated amount of $26,050.00 available through the Information Technology Fund. This Resolution was passed on the consent agenda. Enactment No: 031990 Capital Projects - Consent 34.Motion authorizing execution of Change Order No. 5 for traffic signal improvements at Brooke Road and additional temporary pavement improvements on the Rodd Field Road Expansion project with Haas-Anderson Construction in the amount of $388,506.74 for a total restated fee of $15,713,945.16, located in Council District 5, effective upon notice to proceed, with funding available from Bond 2014, Proposition 2. This Motion was passed on the consent agenda. Enactment No: M2020-016 35.Motion awarding a contract to Freese & Nichols, Inc., for design of roadway and utility improvements on Brawner Parkway from Kostoryz Road to Carroll Lane in the amount of $462,530, located in Council District 2, effective upon notice to proceed, funding is approved and available in Bond 2018 Street Proposition A and FY 2020 Utility Capital Program funds. This Motion was passed on the consent agenda. Enactment No: M2020-017 36.Motion awarding a construction contract to Haas-Anderson Construction, Ltd., for Park Road 22 Bridge construction in the amount of $13,943,536.00, the project is located in City Council District 4 and the contract will be effective upon issuance of notice to proceed, this project is included in the TIRZ#2 Project Plan and funding is available from: Street Bonds 2004 and 2008, Tax Notes 2008; TIRZ#2 and FY 2020 Utility CIP. Page 12City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes This Motion was passed on the consent agenda. Enactment No: M2020-018 General Consent Items 37.Resolution approving the amended guidelines for the American Bank Center Arena Marketing/Co-Promotion Fund granting the City Manager approval authority for the annual amount of $650,000 as approved by the Corpus Christi Business and Job Development Corporation (Type A). This Resolution was passed on the consent agenda. Enactment No: 031991 38.Motion authorizing Amendment No. 1 to the Agreement between the Corpus Christi Business and Job Development Corporation (Type A Board) and the City of Corpus Christi for a total amount of $125,000 for economic development services provided to the Type A Board by the Corpus Christi Regional Economic Development Corporation (CCREDC) and renewing annually with funding available through the FY 2020 Type A Economic Development Funds. This Motion was passed on the consent agenda. Enactment No: M2020-019 40.Motion authorizing a Master Service Agreement for Planning Services with Asakura Robinson Company LLC , in an amount not to exceed $150,000 for the Interstate 37 Corridor Plan and $100,000 for the Farm-to-Market 624 (Northwest Boulevard) Corridor Plan, for a total amount not to exceed $250,000, effective upon notice to proceed, with funding available in the FY 2020 General Fund. This Motion was passed on the consent agenda. Enactment No: M2020-021 5.One-Reading Ordinance amending Corpus Christi Code Section 39-324 to designate Martin Luther King, Jr. Day as an official City Holiday beginning January 20, 2020. Mayor McComb referred to Item 5. City Manager Peter Zanoni discussed the following topics: that this item is on the agenda at the request of four council members; that Martin Luther King, Jr. (MLK) Day is a national and state holiday; the entities in Nueces County that observe the holiday; that the City of Corpus Christi observes fewer holidays than the average number of holidays observed by the seven largest cities in Texas and less than the 8 holidays observed by the private sector; costs related to observing MLK Day; use of obesity program funds to cover related costs; support among council members for the holiday; the number of days of paid Page 13City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes vacation and sick leave earned by city employees each year; decreasing the number of sick days employees earn by one to compensate for the addition of MLK Day and limitations related thereto regarding Police and Fire collective bargaining contracts; civil rights issues; the cost of adding MLK Day over one and ten years; budgeting for the addition of MLK Day before adding it to the list of paid holidays; the number of employee work hours that will be forgone by observing MLK Day; not decreasing obesity funding; the timing of this agenda item in relation to the proximity of its first observance on January 20, 2020; recognizing City Manager Zanoni for the diversity he has exhibited in hiring employees; costs incurred on a normal city business day versus increased costs due to overtime that is associated with observing MLK Day; the importance of MLK Day; that President Ronald Reagan acknowledged the importance of Martin Luther King, Jr. by signing into law Martin Luther King, Jr. Day in 1983; observing MLK Day as a day of service and titling it "Martin Luther King, Jr. Civil Rights Day of Service"; certain council members expressed embarrassment that the City has not observed this national holiday since its creation 37 years ago; the urgency of observing the holiday this year and not in some future year; that there is not an impact on City revenues by observing this holiday; the need for the City to still meet required deadlines notwithstanding the observance of this holiday; why it has taken so long for the City to recognize this holiday; the importance of Police and Fire personnel's time off; implementing the observance of MLK Day in a financially responsible manner by trading a sick leave day for MLK Day; observing MLK Day as a civil rights day; the cost associated with observing MLK Day; that the banking industry has long observed the holiday; how a price cannot be put on what Martin Luther King, Jr. did for the United States of America; and a council member's experience being an African-American male in the United States. Mayor McComb called for comments from the public. Joel Mumford, 6212 Hidden Cove; Albert Walker, 6221 Norchester Dr. and President of the Coastal Bend Fellowship of Christian Churches; Alice Upshaw Hawkins, 3605 Cottonwood St.; Sylvia Tryon Oliver, 2814 Roger St.; Libby Averyt, 430 Grant Pl.; Robert Gonzalez, 5901 Harvest Hill Rd.; and Ernie, 5905 Lago Vista Dr., spoke in support of the City observing MLK Day. Council Member Guajardo made a motion to approve the ordinance as amended on emergency to designate Martin Luther King, Jr. Civil Rights Day of Service as an official City Holiday beginning January 20, 2020, seconded by Council Member Smith. A council member and City Manager Zanoni discussed bringing back to the Council how the obesity program will proceed if monies are used from it to fund the City's observance of this holiday. This Ordinance was passed as amended on emergency 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: 031977 Page 14City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Second Reading Ordinances - Consent 16.Ordinance to revise fees for Sunrise Beach camp sites effective February 1, 2020. Mayor McComb referred to Item 16. Council member and Director of Water Utilities Kevin Norton discussed the following topics: that Sunrise Beach is run by the Water Department; how long it has been since rates at Sunrise Beach have been adjusted; comparing rates at Sunrise Beach RV Park with those of other area RV parks; if electricity is included in the monthly rental fee at other RV parks; that there are 93 full hook up sites at Sunrise Beach RV Park, of which 70 are currently full; completing a full market analysis to determine proper fees for Sunrise Beach; making improvements to the facility in light of increasing rates; implementing an improvement plan for Sunrise Beach RV Park; charging more to get people to move out; permanent structures built adjacent to RVs by long-time residents; that Sunrise Beach is currently more a trailer park than an RV park; competitively securing new management for the park; that, currently, tires are flat on and or missing from numerous trailers in the park; that the reason for the increase in rates is to catch up to market rates; a council member requested an improvement plan for the park and stated that rates should be set commensurate with planned improvements; if the City should be in the RV park business; not putting capital dollars into improvements; obtaining from staff a recommendation regarding the future of the park itself; how allowing long-term rentals at the park came about; a request that staff assess the current situation and bring back to Council a recommendation regarding use of the property; deferring a rate increase; that another similar City-owned property on Lake Corpus Christi is currently being operated by a third-party that was competitively procured by the City; concern that rental rates at Sunrise Beach RV Park are so low that utility rate payers are subsidizing said rates, thus the need for some rate increase now; bringing an action plan back to Council regarding the property; if an increase is being considered only for the monthly rate or for all other rates; and ownership of the property. Mayor McComb made a motion to amend the ordinance to increase the monthly site fee to $500.00 and that the City Manager is to bring back to the Council a plan of action for the property in 30 days, seconded by Council Member Smith. Mayor McComb called for comments from the public. James Skrobarcyzk, 714 Oriole St., spoke regarding the jet fest festival, which used to be held at Sunrise Beach, but which has not been held for some years now and maximizing the potential of the park. Mayor McComb amended his motion to amend the ordinance to increase the monthly site fee to $500.00 and that the City Manager is to bring back to the Council a plan of action for the property by March 1, 2020, seconded by Council Member Smith. Mayor McComb amended his motion to amend the ordinance to increase the monthly site fee to $500.00, effective upon passage of the ordinance, and that the City Manager is to bring back to the Council a plan of action for the Page 15City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes property by March 17, 2020, seconded by Council Member Smith and passed unanimously. Mayor McComb made a motion to approve the ordinance as amended, seconded by Council Member Smith. This Ordinance was passed on second 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 Enactment No: 031988 General Consent Items 39.Motion authorizing a one-year service agreement for an amount not to exceed $281,137, with an additional one-year option for a total potential value of $562,274, with Raftelis Financial Consultants, Inc. of Austin, Texas, for support with the final stages of development and implementation of a Stormwater fee, effective upon issuance of a notice to proceed, with FY 2020 funding of $281,137 available through the Stormwater Fund. Mayor McComb deviated from the agenda and referred to Item 39. Executive Director of Water Utilities Dan Grimsbo stated that the purpose of this item is to establish a stormwater fee. Council members and Executive Director Grimsbo, Katie Cromwell, Manager with Raftelis Financial Consultants, Inc. (Raftelis), Assistant Director of Support Services for Water Utilities Reba George, and Director of Contracts and Procurement Kim Baker discussed the following topics: developing a fair and equitable storm water rate structure; using a land parcel-based fee; that Raftelis specializes in this type of work; the relationship between parcels of land and utility accounts; the type of parcels of land and to what extent each uses the City's stormwater system; factoring in impervious cover; community engagement; utilizing the to-be-developed stormwater rate in budgeting; the process involved in adding the stormwater rate to utility bills; the percentage of the current water charge that is stormwater; that utility customers should know what the dollar amount is associated with stormwater; using as a model, the street maintenance fee, which is charged to some individuals who do not pay for utilities; inside- versus outside-city-limits water rates; that outside-city-limits water users are not charged for stormwater; a request for a press release regarding winter-quarter averaging of wastewater rates; adding to current utility bills an informational asterisk noting the amount of the water portion of the bill attributable to stormwater and the importance of utility customers knowing this information. There were no comments from the public. Council Member Smith made a motion to approve the motion, seconded by Council Member Hernandez. This Motion was passed and approved with the Page 16City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes 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: M2020-020 Capital Projects - Consent 31.Motion awarding a Master Service Agreement (MSA) for Subsurface Utility Engineering (SUE) Services for locating underground lines associated with Bond Street projects to Cobb, Fendley & Associates, Inc. for an initial amount up to $350,000 and one renewal option to be administratively authorized for a total not to exceed $700,000, with projects located citywide, effective upon notice to proceed, and funding available through the FY 2020 Utility Capital Program. Mayor McComb referred to Item 31. Council members, Director of Engineering Services Jeff Edmonds and City Manager Peter Zanoni discussed the following topics: differences in rates per hour proposed by vendors; passthrough fees for consulting and subcontracting; establishing a reasonable range of rates; enacting a policy that establishes acceptable engineering rates in our area; an acceptable range for other direct costs; what can be done to establish some consistency in engineering rates among engineering vendors; applicable provisions of the Professional Services Act; negotiating fees with the number 2 vendor if the top vendor does not submit reasonable fees; if the City if over paying for other direct costs; the balance between costs and costs associated with time; and completing a comprehensive review of procurement and contracts, including comparing the City of Corpus Christi with other major cities in Texas. A council member noted that the Master Service Agreement with Hanson Professional Services related to Item 33 was not included in the agenda. There were no comments from the public. Council Member Hernandez made a motion to approve Items 31 and 32, seconded by Council Member Garza. These Motions were passed and approved by one vote. Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Hernandez, Council Member Molina, Council Member Roy and Council Member Smith 7 - Absent:Council Member Guajardo and Council Member Hunter2 - Abstained:0 Enactment No: M2020-013 32.Motion awarding a Master Service Agreement (MSA) to HDR Page 17City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Engineering, Inc. for a Comprehensive Feasibility Study to identify future Seawall projects in an amount not to exceed $250,000, effective upon notice to proceed, with funding approved and available from Type A funds. This Motion was passed and approved by one vote (see Item 31). Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Hernandez, Council Member Molina, Council Member Roy and Council Member Smith 7 - Absent:Council Member Guajardo and Council Member Hunter2 - Abstained:0 Enactment No: M2020-014 33.Motion awarding a Master Service Agreement (MSA) to Hanson Professional Services for the initial amount not to exceed $150,000 each with two optional renewals and a MSA to LNV Inc for an initial amount not to exceed $150,000 each with two optional renewals to provide professional services for roofing upgrades/replacement and building envelope improvements for Public Safety, Fire, and Public Health Departments, effective upon notice to proceed with current funding available from Bond 2018 Propositions E and F. Mayor McComb referred to Item 33. A council member and City Manager Peter Zanoni discussed that the portion of this Item related to Hanson Professional Services would be brought back to Council on January 21, 2020 (also, see Item 31). There were no comments from the public. Council Member Hernandez made a motion to approve the motion as amended, awarding a Master Service Agreement (MSA) to LNV, Inc. for an initial amount not to exceed $150,000 each with two optional renewals to provide professional services for roofing upgrades/replacement and building envelope improvements for Public Safety, Fire, and Public Health Departments, effective upon notice to proceed with current funding available from Bond 2018 Propositions E and F, seconded by Council Member Garza. This Motion was passed and approved as amended with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Hernandez, Council Member Roy and Council Member Smith 6 - Absent:Council Member Guajardo and Council Member Hunter2 - Abstained:Council Member Molina1 - Enactment No: M2020-015 REGULAR AGENDA: (ITEM 46)O. Page 18City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes 46.Discussion and possible action regarding a preliminary application to rename William Street to Lomax Street. Mayor McComb deviated from the agenda and referred to Item 46. City Secretary Rebecca L. Huerta presented information on the following topics: Section 49-1 of the City Code of Ordinances; Council Policy No. 7; the street renaming process; William Street versus Williams Drive; Council's options; and next steps if Council Policy No. 7 is waived. Council members, City Secretary Huerta and City Traffic Engineer Renee Couture discussed the following topics: that downtown streets are named for founders of Corpus Christi; the origin of William St.; who bears the cost to replace street signs if William St. is renamed and related estimated costs. Council Member Roy made a motion to waive Council Policy No. 7 and to proceed with the process outlined in Section 49-1 of the City Code of Ordinances, seconded by Council Member Smith. A council member, Business Liaison Arlene Medrano and City Secretary Huerta discussed the following topics: the number of businesses with addresses on William Street; and the process by which this street renaming request will be brought back to Council to rename William Street. There were no comments from the public. This Motion was passed and approved with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 8 - Absent:Council Member Guajardo1 - Abstained:0 Enactment No: M2020-022 CONSENT AGENDA: (ITEM 41) 41.Resolution supporting the development and implementation of a comprehensive industrial master plan for San Patricio County, Texas. Mayor McComb referred to Item 41. Director of Planning and ESI Daniel McGinn presented information on the following topics: industrial growth in San Patricio County; projected job growth; future challenges; the study area; stakeholders; and next steps. Council members and Director McGinn discussed the following topics: where to promote industrial development; the importance of working with San Patricio County stakeholders; and developing a regional approach to growth. Mayor McComb called for comments from the public. James Skrobarczyk, 714 Oriole St., spoke regarding the extent of the City's Extra-Territorial Jurisdiction Page 19City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes (ETJ) in San Patricio County; and developing the City of Corpus Christi in San Patricio County. Council Member Smith made a motion to approve the resolution, seconded by Council Member Molina. This Resolution was passed and approved with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 9 - Abstained:0 Enactment No: 031992 PUBLIC HEARINGS: (ITEMS 42 - 45)N. 42.Zoning Case No. 1019-07, AGCE Corp. (District 1). Ordinance rezoning property at or near 3001 Morgan Avenue from the “IL/H” Light Industrial District with the Historic Overlay to the “IL” Light Industrial District. Landmark Commission, Planning Commission, and Staff recommend Denial. (3/4 vote required to overrule the Planning Commission’s recommendation) Mayor McComb referred to Item 42. Director of Development Services Al Raymond stated that the purpose of this item is to remove the Historic Overlay for the purpose of building renovations. Director Raymond presented information on the following topics: aerial overview; zoning pattern; Landmark Commission's, Planning Commission's and Staff's recommendation to deny the applicant's request to remove the Historic Overlay. Council members, Director Raymond and Assistant Director of Development Services Michael Dice discussed the following topics: what the applicant has planned for the property; obtaining a certificate of appropriateness (CofA); the applicant's desire to renovate the building on the subject property; the consequences of not approving the applicant's request; the waiting period, after the Landmark Commission's decision regarding a request for a CofA, as specified in the Unified Development Code (UDC), before a property owner can make improvements or changes to a property or demolish a structure; who is the current owner of the property; what the City has done to take care of existing historical structures within the city; what the previous owner, the GI Forum, did/did not do with respect to preserving the structure on the subject property; when the current owner learned of the Historic Overlay; the purpose of a CofA; the process to apply for a CofA; and that the Historic Overlay conveys with the property. Mayor McComb opened the public hearing. Heidi Hovda, 1022 Harrison St., spoke in opposition to removing the Historic Overlay and the significance of civil rights-related events that occurred in the building that was the previous office and medical practice of Dr. Hector P. Garcia. Mayor McComb closed the public hearing. Page 20City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Council members, Director Raymond and Assistant Director Dice discussed the following topics: that a CofA must be applied for through the Landmark Commission and the timing of same with respect to action the Council may take on this item; the potential cost to renovate the building versus demolish it and construct a new building; erecting a historical marker on the subject property; the type and extent of renovations planned by the applicant; not removing the Historic Overlay; the importance of events that occurred in the building on the subject property; the process of the Landmark Commission erecting a historical plaque and who pays for same; a state historical designation versus the City's Historic Overlay; the purpose of the time delay as set out in the UDC, after the Landmark Commission's decision regarding an application for a CofA, and when a property owner whose property has a Historic Overlay designation can renovate, make changes to or demolish a structure; how a Historic Overlay designation works in conjunction with the City Code of Ordinances that might otherwise call for the demolition of a building; and what denial of the applicant's request allows/does not allow the applicant to do with respect to the building and the placement of a historical marker on the property. Council Member Roy made a motion to deny the ordinance, seconded by Council Member Garza. A council member and Director Raymond discussed the following topics: if tabling the item would be beneficial; that the Historic Overlay allows for the erecting of a historical marker on the subject property; and the applicant's desire to remove the Historic Overlay. This Ordinance failed and was not 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 43.Zoning Case No. 1119-04, Virgil and Carolyn Greene (District 4). Ordinance rezoning property at or near 3846 and 3850 Herring Drive from the “R-MH” Manufactured Home District to the “RS-6” Single-Family 6 District. Planning Commission and Staff recommend Approval. Mayor McComb referred to Item 43. Director of Development Services Al Raymond stated that the purpose of this item is to allow for the construction of a single-family home. Mayor McComb opened the public hearing. There were no comments from the public. Mayor McComb closed the public hearing. Council Member Hunter made a motion to approve the ordinance, seconded by Council Member Guajardo. This Ordinance was passed on first reading and approved with the following vote: Page 21City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes 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 44.Zoning Case No. 1119-05, Corpus Christi Housing Authority (District 1). Ordinance rezoning property at or near 2427 Francis Street from the “RS-6” Single-Family 6 District to the “RS-TF” Two Family District. Planning Commission and Staff recommend Approval. Mayor McComb referred to Item 44. Mayor McComb called for comments from the applicant. Dan Brown with the Corpus Christi Housing Authority stated that the purpose of the application is to allow for the construction of 2 duplexes, each containing 2 three bedroom / three bath units for rent. Council Member Guajardo made a motion to approve the ordinance, seconded by Council Member Hunter. Mayor McComb opened the public hearing. There were no comments from the public. Mayor McComb closed the public hearing. 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 45.Ordinance adopting the East London Area Wastewater Master Plan, an element of the Comprehensive Plan, to provide wastewater service to land located between the Oso Creek and SH 286 and between FM 43 and FM 2444; amending related elements of the Comprehensive Plan; and providing for publication. (Recently annexed; Contiguous to Council District 5) Mayor McComb referred to Item 45. Director of Planning and ESI Daniel McGinn presented information on the following topics: location map; subject property; proposed service area (East London lift station); comments from area property owners; modifications; and Planning Commission's and Staff's recommendation. Mayor McComb called for comments from the applicant. Diana Gonzalez, 333 Santa Monica Pl., discussed the following topics: the history of the King's Lake Phase 2 development; recent changes in the City facilitating development; the Page 22City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Oso Creek Hike and Bike Trail; a regional water detention site to address flooding; creation of a preserve; and that 500 to 1,000 homes are proposed to be built. Council members, Director McGinn and Utilities Department Engineer V Gabriel Hinojosa discussed the following topics: the wastewater capacity of the lift station in Phase 1; the percent of the Tamez property that the lift station will serve; capacity restrictions attributable to gravity in Phase 1; that Phase 2 will route wastewater to the Greenwood Wastewater Treatment Plant; the number of acres to be dedicated to the preserve; the remaining number of acres to be developed; and future acreage to be served by the City's wastewater system. Mayor McComb opened the public hearing. James Skrobarczyk, 714 Oriole St., spoke regarding the subject property meeting the criteria of Plan 2035. Mayor McComb closed the public hearing. Council Member Guajardo made a motion to approve the ordinance, seconded by Council Member Hernandez. 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 P. FIRST READING ORDINANCES: (ITEMS 47 - 50) 47.Ordinance amending Chapter 53 of the City Code to amend section 53-187 allowing the City Manager, Chief of Police or their designee(s) to issue parking placards to exempt executive city officials from paying parking fees for city owned, paid parking spaces while conducting official city business. Mayor McComb referred to Items 47 - 50. A council member asked that Item 49 be pulled for individual consideration. Council Member Molina announced he was abstaining from Item 49. Council Member Molina made a motion to approve Items 47 - 48 and 50, seconded by Council Member Guajardo. 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 48.Ordinance accepting a $50,000 grant from the Ed Rachal Foundation to Page 23City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes fund overtime for increased police presence in a neighborhood near Crosstown Expressway and Agnes Street in Council District 1; and appropriating $50,000 in the Police Grants Fund. This Ordinance was passed on first reading and approved by one vote (see Item 47). 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 50.Ordinance approving an affordable housing agreement with FishPond Living at Corpus Christi, LP located at 1002 Sixth Street in an amount not to exceed $500,000.00 to provide affordable housing to residents of the existing Sea Gulf Villa in downtown Corpus Christi with a development deadline of two-years following the effective date of the agreement (approximately December 2021); appropriating $500,000.00 from the unreserved fund balance in the Business/Job Development Fund; and amending the budget. This Ordinance was passed on first reading and approved by one vote (see Item 47). 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 49.Ordinance approving a service agreement for repairs to the Airport storage building with Vertex Roofing, LLC of Corpus Christi, Texas, for an amount not to exceed $84,652.00; appropriating $45,016.99 from the Unreserved Fund Balance in the Airport Fund; and amending the operating budget. Mayor McComb referred to Item 49. A council member and Director of Contracts and Procurement Kim Baker discussed the difference in and reasons for the variance in dollar amounts of bids. Council Member Hunter made a motion to approve the ordinance, seconded by Council Member Guajardo. This Ordinance was passed on first reading and approved with the following vote: Aye: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 - Page 24City of Corpus Christi Printed on 1/24/2020 January 14, 2020City Council Meeting Minutes Abstained:Council Member Molina1 - IDENTIFY COUNCIL FUTURE AGENDA ITEMSS. Mayor McComb referred to Identify Council Future Agenda Items. No items were discussed or identified. ADJOURNMENTT. The meeting was adjourned at 6:28 p.m. Page 25City of Corpus Christi Printed on 1/24/2020 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com City of Corpus Christi Meeting Minutes City Council 11:30 AM Council ChambersTuesday, January 21, 2020 Addendums may be added on Friday. Mayor Joe McComb to call the meeting to order.A. Mayor McComb called the meeting to order at 11:31 a.m. Invocation to be given by Deacon Mark Arnold, Diocese of Corpus Christi.B. Deacon Mark Arnold gave the invocation. Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be led by Nina Nixon-Mendez, Assistant Director of Administration, Development Services. C. Nina Nixon-Mendez 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 January 22, 2020, "Aurora Arts Theatre Day". Proclamation declaring January 6 - March 1, 2020, "It's Time Texas Community Health Challenge". Commendations for Arlington Heights Christian High School Six-Man Football Team. Swearing-In Ceremony for Newly Appointed Board, Commission, Committee and Corporation Members. Page 1City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes The Proclamations were presented. Presentation from CCAD - Your Depot, Our Mission, Its Impact by Colonel Gail E. Atkins, Commander Corpus Christi Army Depot F. Mayor McComb referred to Item F. Corpus Christi Army Depot (CCAD) Commander Colonel Gail E. Atkins presented information on the following topics: the world's premier helicopter facility; CCAD business analytics; aircraft - 40% of production (by revenue); UH-60 recapitalization; crash damage repair; components - 60% of production (by revenue); advanced capabilities and support; government/educational partners; on-site OEM partners; CCAD area development plan and B1700 phases; Defense Economic Adjustment Assistance (DEAAG) Grant; proposed new DEAAG project - "flight line safety improvements"; and a brief video was presented. A council member discussed the importance of CCAD and the U.S. Army and Navy in the region. Proclamations / CommendationsE. 1.Proclamation declaring January 22, 2020, "Aurora Arts Theatre Day". Proclamation declaring January 6 - March 1, 2020, "It's Time Texas Community Health Challenge". Commendations for Arlington Heights Christian High School Six-Man Football Team. Swearing-In Ceremony for Newly Appointed Board, Commission, Committee and Corporation Members. The Swearing-In Ceremony was conducted. 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. 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. Barbara Welder, 202 Reef Ave. and president of the North Beach Community Association, spoke in support of continuing the North Beach Task Force (NBTF); objectives of the NBTF; and requested that two members be added to the NBTF. Carrie Meyer, 4401 Gulfbreeze Blvd., spoke in support of continuing the NBTF; the history of and reasons for the NBTF; and requested the addition of Page 2City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes two members to the NBTF, one from the North Beach Community Association and one from the attraction industry. Debra Pope, 4242 Gulfbreeze Blvd. and Ron Graban, 202 Surfside Blvd., spoke in support of continuing the North Beach Task Force. Sharon Butts, 6041 Edgewater Dr., requested that the City conduct an analysis of a recent rekindled structure fire on North Beach. Errol Summerlin, Portland, Texas, with Portland Citizens United and Coastal Alliance to Protect our Environment (CAPE), spoke regarding the projected depletion of the City's water supply and heavy industries' demand for water; water demands by heavy industry on the Lavaca Navidad River Authority and for desalination; the relationship between water-related fees paid by heavy industry and the City's provision of water to heavy industry during various stages of the drought contingency plan; and the cumulative negative impact of industry in the Coastal Bend. Margareta Fratila, 3606 Tripoli Dr., spoke regarding the need for homes and businesses in Corpus Christi to properly display their address numbers on buildings; and criminal activity in derelict buildings. Susie Luna Saldana, 4710 Hakel Dr., advocated for task forces in various parts of the City and in each city council district. CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS:H. Mayor McComb referred to City Manager's Comments. City Manager Peter Zanoni reported on the following topics: OTHERa. 1) City Manager Peter Zanoni welcomed Richard Martinez, the City's new Public Works/Street Operations Department Director. 2) City Manager Zanoni identified some of the City's top priorities / policy issues as identified by the City's Executive Leadership Team. MINUTES:I. 2.Regular Meeting of January 14, 2020 This Minutes were withdrawn. BOARD & COMMITTEE APPOINTMENTS: (NONE)J. EXPLANATION OF COUNCIL ACTION:K. CONSENT AGENDA: (ITEMS 3 - 24)L. Approval of the Consent Agenda Mayor McComb referred to the Consent Agenda. Mayor McComb announced that staff was withdrawing Item 3. Council members requested that Items 11, 21 and 23 be pulled for individual consideration. Council Member Molina announced he was abstaining on Items 8 and 23. There were no comments from the public. Page 3City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes A motion was made by Council Member Garza, seconded by Council Member Roy, to approve the Consent Agenda. The motion carried by the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 9 - Abstained:0 3.Zoning Case No. 1019-07, AGCE Corp. (District 1). Ordinance rezoning property at or near 3001 Morgan Avenue from the “IL/H” Light Industrial District with the Historic Overlay to the “IL” Light Industrial District. Landmark Commission, Planning Commission, and Staff recommend Denial. (3/4 vote required to overrule the Planning Commission’s recommendation) This Item was withdrawn by staff. Second Reading Ordinances - Consent 4.Zoning Case No. 1119-04, Virgil and Carolyn Greene (District 4). Ordinance rezoning property at or near 3846 and 3850 Herring Drive from the “R-MH” Manufactured Home District to the “RS-6” Single-Family 6 District. Planning Commission and Staff recommend Approval. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031993 5.Zoning Case No. 1119-05, Corpus Christi Housing Authority (District 1). Ordinance rezoning property at or near 2427 Francis Street from the “RS-6” Single-Family 6 District to the “RS-TF” Two Family District. Planning Commission and Staff recommend Approval. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031994 6.Ordinance adopting the East London Area Wastewater Master Plan, an element of the Comprehensive Plan, to provide wastewater service to land located between the Oso Creek and SH 286 and between FM 43 and FM 2444; amending related elements of the Comprehensive Plan; and providing for publication. (Recently annexed; Contiguous to Council District 5) This Ordinance was passed on second reading on the consent agenda. Enactment No: 031995 7.Ordinance amending Chapter 53 of the City Code to amend section 53-187 allowing the City Manager, Chief of Police or their designee(s) to Page 4City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes issue parking placards to exempt executive city officials from paying parking fees for city owned, paid parking spaces while conducting official city business. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031996 9.Ordinance accepting a $50,000 grant from the Ed Rachal Foundation to fund overtime for increased police presence in a neighborhood near Crosstown Expressway and Agnes Street in Council District 1; and appropriating $50,000 in the Police Grants Fund. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031998 10.Ordinance approving an affordable housing agreement with FishPond Living at Corpus Christi, LP located at 1002 Sixth Street in an amount not to exceed $500,000.00 to provide affordable housing to residents of the existing Sea Gulf Villa in downtown Corpus Christi with a development deadline of two-years following the effective date of the agreement (approximately December 2021); appropriating $500,000.00 from the unreserved fund balance in the Business/Job Development Fund; and amending the budget. This Ordinance was passed on second reading on the consent agenda. Enactment No: 031999 Contract and Procurement - Consent 12.Motion authorizing the lease-purchase of two 2021 M2-112 TRA Freightliner crew trucks with service bodies, as additions to the fleet for the Water Division of the Utilities Department to be used to haul heavy equipment to jobsites throughout the City, to be purchased from Houston Freightliner, Inc., of Houston, Texas, for a total amount of $318,696.51 through the Houston-Galveston Area Council (H-GAC) Purchasing Cooperative, effective upon issuance of letter of acceptance, with FY 2020 funding in the amount of $42,492.87 available through the Water Fund. This Motion was passed on the consent agenda. Enactment No: M2020-024 13.Motion authorizing the lease-purchase of three 2021 M2-112 TRA Freightliner crew trucks with service bodies, as additions to the fleet for the Wastewater Division of the Utilities Department to be used to haul heavy equipment to jobsites throughout the City, to be purchased from Houston Freightliner, Inc., of Houston, Texas, for a total amount of Page 5City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes $480,643.29 through the Houston-Galveston Area Council (H-GAC) Purchasing Cooperative, effective upon issuance of letter of acceptance, with FY 2020 funding in the amount of $64,085.77 available through the Wastewater Fund. This Motion was passed on the consent agenda. Enactment No: M2020-025 14.Motion authorizing a purchase of two Toro 16’ wide mowers from Professional Turf Products LP of Selma, Texas, for a total amount of $195,157.92 through the BuyBoard Cooperative, to be used by the Parks and Recreation Department for mowing City parks, effective upon issuance of letter of acceptance with funding available through the FY 2020 General Fund. This Motion was passed on the consent agenda. Enactment No: M2020-026 15.Motion authorizing a purchase of three Ford F250 pickup trucks from Silsbee Ford, Inc. of Silsbee, Texas, for a total amount of $106,638.48 through the GoodBuy Purchasing Cooperative to be used by the Parks and Recreation Department for construction and irrigation projects as an addition to the fleet, effective upon issuance of letter of acceptance with funding available through the FY 2020 General Fund. This Motion was passed on the consent agenda. Enactment No: M2020-027 16.Motion authorizing the lease-purchase of one Western Star winch truck, as a replacement unit for Gas Operations to be used to load heavy equipment onto trucks and/or trailers dispatched to job sites throughout the City, to be purchased from Grande Truck Center of San Antonio, Texas, for a total amount of $175,051.93 through the BuyBoard Purchasing Cooperative, effective upon issuance of letter of acceptance, with FY 2020 funding in the amount of $23,340.26 available through the Gas Fund. This Motion was passed on the consent agenda. Enactment No: M2020-028 17.Motion authorizing the lease-purchase of one 2019 Atlas Copco XA(V)S 650 JD8 T4F portable air compressor, as an addition to the fleet for Gas Operations to be used as the final step to test the City’s high-pressure gas mains for leaks before they are put into service, to be purchased from ROMCO Equipment Co. of Corpus Christi, Texas, for a total amount of $139,583.89 though the NJPA-Sourcewell Purchasing Cooperative, effective upon issuance of letter of acceptance, with FY2020 funding in an Page 6City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes estimated amount of $18,477.84 available through the Gas Funds. This Motion was passed on the consent agenda. Enactment No: M2020-029 18.Motion authorizing a two-year supply agreement with Gajeske, Inc. of Corpus Christi, Texas, in an amount not to exceed $1,234,287.92 for the purchase of gas line pipe for the City Warehouse as a central distribution for Gas Operations, effective upon issuance of notice to proceed, with funding in the amount of $411,429.31 available in the FY 2020 Stores Fund. This Motion was passed on the consent agenda. Enactment No: M2020-030 19.Motion authorizing a two-year supply agreement with Gajeske Inc. of Corpus Christi, Texas, in an amount not to exceed $443,618.22 for the purchase of polyethylene pipe for the City Warehouse as a central distribution for Gas Operations, effective upon issuance of notice to proceed, with funding in the amount of $147,872.74 available in the FY 2020 Stores Fund. This Motion was passed on the consent agenda. Enactment No: M2020-031 20.Motion authorizing a purchase of three Ford Interceptor sport utility vehicles (SUV) from Silsbee Ford, Inc. of Silsbee, Texas, as replacements to the fleet, for a total amount of $109,868.25 through the GoodBuy Purchasing Cooperative to be used by City Marshals to conduct Municipal Court business, effective upon issuance of letter of acceptance with funding available through the FY 2020 Fleet Maintenance Service Fund. This Motion was passed on the consent agenda. Enactment No: M2020-032 22.Motion authorizing an amendment to Service Agreement with Siddons-Martin Emergency Group, LLC of Katy, Texas for a total amount not to exceed $150,000.00, increasing the service agreement value to $750,000.00 for purchase of parts and services for Fire Department, with fiscal year 2020 funding available in the General Fund. This Motion was passed on the consent agenda. Enactment No: M2020-034 General Consent Items Page 7City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes 24.Resolution authorizing the execution of a Mutual Aid Agreement with the Corpus Christi Fire Department and the Coastal Plains Local Emergency Planning Committee that includes 14 municipalities in Aransas, Refugio, and San Patricio counties for the provision of firefighting assistance. This Resolution was passed on the consent agenda. Enactment No: 032000 Second Reading Ordinances - Consent 8.Ordinance approving a service agreement for repairs to the Airport storage building with Vertex Roofing, LLC of Corpus Christi, Texas, for an amount not to exceed $84,652.00; appropriating $45,016.99 from the Unreserved Fund Balance in the Airport Fund; and amending the operating budget. Mayor McComb referred to Item 8 There were no comments from the Council or the public. Council Member Hunter made a motion to approve the ordinance, seconded by Council Member Garza. This Ordinance was passed on second reading and approved with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Roy and Council Member Smith 8 - Abstained:Council Member Molina1 - Enactment No: 031997 Contract and Procurement - Consent 11.Motion authorizing the lease-purchase of one John Deere excavator, as an addition to the fleet for the Utilities Department to be used for construction work and emergency repairs of stormwater infrastructure throughout the City, to be purchased from Doggett Heavy Machinery Services, LLC of Corpus Christi, Texas, for a total amount of $467,223.62 through the BuyBoard Cooperative, effective upon issuance of letter of acceptance, with FY 2020 funding in the amount of $62,296.48 available through the Stormwater Fund. Mayor McComb referred to Item 11. Council members and City Manager Peter Zanoni discussed the following topics: that lease-purchasing is a form of borrowing; that the City is studying how vehicles and equipment are purchased; the percentage of vehicles in the replacement fund; making an infusion of cash into the replacement fund; the cost of interest over time; and management of the replacement fund. Page 8City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes Council Member Smith made a motion to approve the motion, seconded by Council Member Garza. Council members and City Manager Zanoni discussed the following topics: a request from a council member that City Manager Zanoni provide the Council with a comprehensive purchase plan and associated maintenance program; and that ad valorem taxes are not being paid on items lease-purchased by the City. There were no comments from the public. 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: M2020-023 21.Motion authorizing a three-year service agreement with Coastline Refrigeration and Service, LLC of Corpus Christi, TX for a total amount not to exceed $2,013,940.00 for Heating, Ventilation and Air Conditioning (HVAC) preventative maintenance and repairs to 28 City facilities, effective upon issuance of notice to proceed, with funding in the amount of $447,542.22 available through the FY 2020 Facility and Property Management Fund. Mayor McComb referred to Item 21. Council members, Deputy Director of Asset Management Charles Mendoza, Director of Asset Management Jim Davis and Director of Contracts and Procurement Kim Baker discussed the following topics: if the City's HVAC systems are in Maximo; if the City's HVAC systems will be put in Maximo for asset life cycle management purposes; that the purpose of this Item is servicing of HVAC units city wide; having only one bid; bid paperwork not turned in by Johnson Controls; and if the selected vendor has the ability to maintain gas chillers. There were no comments from the public. Council Member Hernandez made a motion to approve the motion, seconded by Council Member Barrera. 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 Molina, Council Member Roy and Council Member Smith 8 - Absent:Council Member Hunter1 - Abstained:0 Enactment No: M2020-033 Page 9City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes 23.Motion awarding Master Service Agreement (MSA) to Hanson Professional Services in an initial amount not to exceed $150,000 with two optional renewals to provide professional services for roofing upgrades/replacement and building envelope improvements for Public Safety, Fire, and Health Departments, effective upon issuance of notice to proceed with current funding available from Bond 2018 Propositions E and F. Mayor McComb referred to Item 23. Council members, Director of Engineering Services Jeff Edmonds and Director of Contracts and Procurement Kim Baker discussed the following topics: inconsistencies in the fee per hour for various engineering costs submitted by engineering firms; achieving consistency in fees per hour for engineering services; the City's responsibilities in relation to professional service fees submitted by vendors; the amount per hour for various levels of engineering professionals in relation to the total amount proposed by vendors; the cost of passthrough costs; the quality of services provided in relation to overall project costs in relation to timelines; standardization of Master Service Agreements (MSAs); benchmarking other cities' MSAs and establishing best practices; cost benchmarks for construction contracts; and statutory requirements in relation to benchmarking professional services fees. There were no comments from the public. Council Member Smith made a motion to approve the motion, seconded by Council Member Hunter. 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 - Abstained:Council Member Molina1 - Enactment No: M2020-035 PUBLIC HEARINGS: (ITEMS 25 - 27)N. 25.Zoning Case No. 1119-01, SCCBH, LLC. (District 1). Ordinance rezoning property at or near 221 Kleberg Place from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District. Planning Commission and Staff recommend approval. Mayor McComb referred to Item 25. Director of Development Services Al Raymond stated that the purpose of this item is to allow for the construction of a hotel. Director Raymond presented information on the following topics: aerial overview, zoning pattern; and Planning Commission's and Staff's recommendation to approve. Mayor McComb opened the public hearing. There were no comments from the Page 10City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes public. Mayor McComb closed the public hearing. There were no comments from the Council. Council Member Roy made a motion to approve the ordinance, seconded by Council Member Garza. 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 26.Zoning Case No. 1119-02, H&P North Beach, LLC (District 1). Ordinance rezoning property at or near 202, 229, and 230 Kleberg Place from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. Planning Commission and Staff recommend approval. Mayor McComb referred to Item 26. Mayor McComb opened the public hearing. There were no comments from the public. Mayor McComb closed the public hearing. There were no comments from the Council. Council Member Roy made a motion to approve the ordinance, seconded by Council Member Barrera. This Ordinance was passed on first reading and approved with the following vote: Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 9 - Abstained:0 27.Zoning Case No. 1219-01, Paula Gaut Properties, Inc. (District 5). Ordinance rezoning property at or near 6734 Saratoga Boulevard (State Highway 357) from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. Planning Commission and Staff recommend Approval. Mayor McComb referred to Item 27. Council Member Hernandez made a motion to approve the ordinance, seconded by Council Member Hunter. Mayor McComb opened the public hearing. There were no comments from the public. Mayor McComb closed the public hearing. There were no comments from the Council. This Ordinance was passed on first reading and approved with the following vote: Page 11City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes Aye:Mayor McComb, Council Member Barrera, Council Member Garza, Council Member Guajardo, Council Member Hernandez, Council Member Hunter, Council Member Molina, Council Member Roy and Council Member Smith 9 - Abstained:0 EXECUTIVE SESSION: (ITEMS 35 - 36)R. Mayor McComb deviated from the agenda and referred to Executive Session Items 35 and 36. The Council went into executive session at 1:34 p.m. The Council returned from executive session at 2:42 p.m. 35.Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to a proposed action determining public necessity and authorizing acquisition of real property adjacent to La Volla Creek and for the La Volla Creek Drainage and Box Culvert Project and the La Volla Creek Detention Pond Project, and pursuant to Texas Government Code § 551.072 to discuss and deliberate the potential purchase, exchange, lease, and/or value of real property interests adjacent to La Volla Creek and for the La Volla Creek Drainage and Box Culvert Project and the La Volla Creek Detention Pond Project when deliberation in open meeting would have a detrimental effect on the position of the governmental body in negotiations with third person(s). This E-Session Item was discussed in executive session. 36.Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to sanitary sewer overflows and the City’s sanitary sewer system, water system, and/or drainage system, dissolved oxygen standards for Oso Bay, Texas Commission on Environmental Quality wastewater discharge permits, backflow protection matters, state and federal regulatory matters and potential litigation related to the City’s water distribution system, and/or potential future litigation involving the U.S. Environmental Protection Agency, State of Texas, and/or U.S. Department of Justice and the potential approval of attorney’s fees, expert fees, and expenses for negotiations and/or litigation with the aforesaid entities. This E-Session Item was discussed in executive session. RECESS FOR LUNCHM. The recess for lunch was held during Executive Session Items 35 and 36. REGULAR AGENDA: (NONE)O. Page 12City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes FIRST READING ORDINANCES: (ITEMS 28 - 34)P. 28.Ordinance accepting a grant from the Flint Hills Resources 2019 Helping Heroes Program in the amount of $10,000 to purchase hazmat equipment; and appropriating the funds into the Fire Grant Fund. Mayor McComb referred to Item 28. Fire Chief Robert Rocha stated that the purpose of this Item is to accept a grant from Flint Hills Resources' 2019 Helping Heroes Program in the amount of $10,000 to purchase hazardous material equipment and to appropriate the funds into the FY2020 Fire Grant Fund. There were no comments from the Council or the public. Council Member Hernandez 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 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 appropriating (a) $148,509.14 to Airport CIP Funds for City’s match for future FAA Grant Projects; (b) $3,119,110.54 to Bond Proceeds for Public Health and Safety, Public Facilities, Parks and Recreation, and Street bond projects; (c) $3,312,230.28 to Utility Revenue Bond Funds for Utility projects (d) $359,757.13 to Specialty Bond Funds for approved specialty projects; and (e) $955,002.37 in other CIP funds for repairs of city streets and other street expenses and water development projects; changing the FY 2020 Capital Improvement Budget adopted by Ordinance No. 031870 to increase expenditures accordingly. Mayor McComb referred to Item 29. Capital Improvement Program Manager Kamil Taras stated that an amendment to the ordinance was required to amend the amount in Section 3 from $3,312,230.28 to $3,553,010.17 due to a reimbursement the City received from the Federal Emergency Management Agency (FEMA), which also requires appropriation with this ordinance. There were no comments from the Council or the public. Mayor McComb made a motion to amend the amount in Section 3 of the ordinance to $3,553,010.17, seconded by Council Member Molina and passed unanimously. Council Member Barrera made a motion to approve the ordinance as amended, seconded by Council Member Hunter. This Ordinance was passed Page 13City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes 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 30.Ordinance amending Corpus Christi Code of Ordinances to add Section 49-15 authorizing execution of easement encroachment licenses as an administrative remedy. Mayor McComb referred to Items 30 - 34. A council member discussed the plans to avoid construction during the spring break and peak summer season in Item 31. In relation to Item 30, a council member and Director of Development Services Al Raymond discussed the following topics: when encroachments on easements are reviewed administratively and by City Council; and removing from the Unified Development Code (UDC) the requirement that encroachments on private easements be approved by City Council. There were no comments from the public. Council Member Roy made a motion to approve Items 30 - 34, seconded by Council Member Hunter. 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 31.Ordinance awarding a construction contract to R.S. Parker Construction, LLC for reconstruction of Newport Pass Road and Zahn Road with new concrete pavement in the amount of $1,337,185.02, located in Council District 4, effective upon issuance of notice to proceed, funding is available from Street Bond 2014, Proposition 2 and Water Utility Capital Program funds; and the FY 2020 Capital Budget is amended to add this project. This Ordinance was passed on first reading and approved by one vote (see Item 30). 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 awarding a contract to HDR Engineering, Inc., for design, bid, and construction phase services for Packery Channel Dredging and Beach Nourishment in the amount of $ 392,736, located in Council Page 14City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes District 4, effective upon issuance of notice to proceed, with funding available from Tax Increment Reinvestment Zone (TIRZ) No. 2 and State Hotel Occupancy Tax Reserve Funds upon approval of this ordinance to amend the budget. This Ordinance was passed on first reading and approved by one vote (see Item 30). 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 33.Ordinance awarding eight Master Services Agreements (MSAs) for Bond 2020 and FY 2021 CIP feasibility studies in an amount not to exceed $3,600,000; three MSAs in the amount of $650,000 each to Freese and Nichols, HDR Engineering, and Urban Engineering for Street projects; two MSAs in the amount of $500,000 and $250,000, to Urban Engineering and LAN respectively for Utility Projects; and three MSAs in the amount of $300,000 each to Bath Engineering, LNV Inc. and Hanson Professional Services for Facility Projects, located city wide with funding available from Street Bond 2014 and FY 2020 Utility CIP; and amending the FY 2020 Capital Budget. This Ordinance was passed on first reading and approved by one vote (see Item 30). 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 34.Ordinance approving the Second Amended and Restated Stadium Lease Agreement with Corpus Christi Baseball Club, LP; appropriating funds in the amount of $2,000,000.00 from the Business and Job Development Fund to match a $1,000,000 allocation by Corpus Christi Baseball Club, LP, for improvements to Whataburger Field; and amending the operating and capital budget. This Ordinance was passed on first reading and approved by one vote (see Item 30). 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)Q. EXECUTIVE SESSION: (ITEMS 37 - 38)R. Page 15City of Corpus Christi Printed on 1/24/2020 January 21, 2020City Council Meeting Minutes Mayor McComb referred to Executive Session Items 37 and 38. The Council went into executive session at 2:51 p.m. The Council returned from executive session at 4:39 p.m. 37.Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues related to the potential acquisition of property on/near Greenwood Dr., and pursuant to Texas Government Code § 551.072 to discuss and deliberate the potential purchase, exchange, lease, and/or value of real property interests when deliberation in open meeting would have a detrimental effect on the position of the governmental body in negotiations with third person(s). This E-Session Item was discussed in executive session. 38.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 state regulatory issues and other legal matters related to potential desalination plant(s) and permits related to said plant(s) and pursuant to Texas Government Code § 551.072 to discuss and deliberate the potential lease, and/or value of real property interests for desalination plant(s) and pursuant to Texas Government Code § 551.087 to discuss confidential commercial or financial information pertaining to 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). This E-Session Item was discussed in executive session. IDENTIFY COUNCIL FUTURE AGENDA ITEMSS. Mayor McComb referred to Identify Council Future Agenda Items. No items were discussed or identified. ADJOURNMENTT. The meeting was adjourned at 4:40 p.m. Page 16City of Corpus Christi Printed on 1/24/2020 Duties Composition Name District Term Appt. date End date Appointing Authority Position Status Category Attendance *Mona Baen District 2 3 2/11/2014 12/18/2019 City Council Met the six-year service limitation Community At-Large *Gerry C Morrow District 4 1 12/12/2017 12/18/2019 City Council Not seeking reappointment Community At-Large *Ron Smith District 4 2 12/15/2015 12/18/2019 City Council Seeking reappointment Community at Large 9/10 meetings 90% (1 excused absence) *Hal Suter District 2 1 2/11/2014 12/18/2019 City Council Deceased Environmentalist *William McDowell District 4 3 2/11/2014 12/18/2019 City Council Chair Met the six-year service limitation Engineer Martha A Avery District 4 2 8/8/2017 12/18/2020 City Council Active Restaurant Richard E Bell District 4 1 1/22/2019 12/18/2020 City Council Active Community At-Large Robyn A Cobb District 5 1 1/22/2019 12/18/2020 City Council Active Scientist Mr Donnell ("Don") H. Laux District 1 1 1/22/2019 12/18/2020 City Council Active Community At-Large Nine (9) members appointed by the City Council for two-year terms. The membership shall include one (1) Scientist, i.e. Marine Biologist, one (1) Engineer, and one (1) Environmentalist; one (1) shall be a Representative of a Restaurant located within the boundaries of the Corpus Christi Downtown Management District, and five (5) Community At-Large members. In the initial appointment, members will serve an initial two-year term, in the succeeding term, 5 members will serve a two-year term, and 4 members will serve a one-year term, as determined by drawing. Thereafter, all terms will be two-years. The Marina Advisory Committee advises and makes recommendations regarding development, use, or preservation of the marina, including the following: (1) assist the City Council in providing for the orderly, planned development and use of the marina; (2) review the annual and capital improvement budgets regarding the improvement and maintenance of the facilities upon the marina; and (3) review and recommend to the City Council the feasibility of development, improvements, maintenance or proposed uses for the marina. *Five (5) vacancies with terms to 12/18/21, representing the following categories: 3 - Community At-Large, 1 - Engineer, and 1 - Environmentalist. (Staff is recommending the postponement of the Engineer for further recruitment and the realignment of Ron Smith to Environmentalist). MARINA ADVISORY COMMITTEE 1-28-2020 Name District Category Jed Blaich District 4 Community At-large Clifford Bost District 1 Community At-large Margareta Fratila District 3 Community At-large Charles Pendlyshok District 4 Community At-large Scientist, i.e Marine Biologist Scott A Traber District 1 Community At-large MARINE ADVISORY COMMITTEE Applicants Duties Composition Name District Term Appt. date End date Appointing Authority Position Status Category *Wayne Squires 1 1/20/2015 12/31/2020 City Council Vice-Chair Resigned City Richard Bowers Other / Non-Resident 2 12/3/2014 12/31/2020 Nueces County Active County Charles Zahn 3 1/11/2012 12/31/2020 Nueces County Chair Active County Wes Hoskins District 1 2 1/1/2016 12/31/2021 San Patricio County Active San Patricio Richard R Valls Jr.District 4 2 12/10/2013 12/31/2021 City Council Secretary Active City David P. Engel District 4 3 1/1/2020 12/31/2022 City Council Active City Catherine Hilliard 1 1/1/2020 12/31/2022 Nueces County Active County *One (1) vacancy with term to 12/31/2020, representing the following category: 1- City. Seven (7) members appointed as follows: three (3) City Council, three (3) Nueces County Commissioner's Court and one (1) San Patricio County for three-year staggered terms. Each person who is appointed or elected shall be a resident of the proposed navigation district and shall be an elector of the county. A person must have been a resident of Nueces County for at least six months to be eligible for appointment to the Port Commission. Commissioners may serve up to four (4) three-year terms. The Port of Corpus Christi Authority of Nueces County, Texas follows the laws prescribed in Article XVI, Section 59 of the Texas Constitution. PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS 1-28-20 Name District Category Patricia C Bell District 4 City Kenneth Berry District 1 City *Carl E Crull District 5 City **Al Jones District 4 City Bradley H Lenz District 4 City Milan Maheshwari District 4 City Jonathan S Nabours District 2 City ***Philip J. Ramirez District 4 City James L Rogers District 5 City Christopher P Stevenson District 5 City Larry L White P.E.District 5 City PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TX Applicants *Currently serves on the Airport Zoning Commission and Planning Commission. Willing to resign if appointed. ***Serves on the Corpus Christi Regional Economic Development Corporation. Resignation is not required, appointed by Corporation's membership. **Currently serves on the Reinvestment Zone No. 3 Board. Willing to resign if appointed. DATE: December 9, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, AIA, Director Development Services Department AlRaymond@cctexas.com (361) 826-3575 CAPTION: Zoning Case No. 1119-01, SCCBH, LLC. (District 1). Ordinance rezoning property at or near 221 Kleberg Place from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District. SUMMARY: The purpose of the zoning request is to allow for the construction of a hotel. BACKGROUND AND FINDINGS: The subject property is 0.99 acres in size. The owner is proposing the construction of a 52-room hotel. There will be 60 total parking spaces (2 accessible). It will consist of a single building, approximately 60 feet in height. The ground floor will be used as parking and the structure will be elevated to meet base flood elevation requirements. Development includes a pool in front of the building on the beach side. The hotel office will be open 24 hours a day and the hotel will employ approximately 20 employees (total) during the various shifts. Right-of-way dedication that was required with platting reduced the buildable area and has limited the flexibility of the hotel design. The requested change of zoning will allow for the space needed for the development. Conformity to City Policy The subject property is located within the boundaries of the Downtown Area Development Plan and is planned for mixed land uses. The proposed rezoning is consistent with the adopted Comprehensive Plan (Plan CC). The proposed rezoning is compatible with neighboring properties and with the general character of the surrounding area. This rezoning does not have a negative impact upon the surrounding neighborhood. Key difference between the “CR-1” and “CR-3” Districts is in regards to setbacks. The “CR-1” District requires a 20-foot street (front) yard setback. The “CR-3” District requires a 10-foot street (front) yard setback. The granting of the change of zoning will allow a reduced setback for the construction of the hotel. Several properties to the north and south including the USS Lexington and Fajitaville along North beach are zoned “CR-3” District; the uses allowed in both the “CR-1” and “CR-3” Districts are Multifamily, Offices, Medical, Restaurants, Retail, Bars, and Hotel uses. Rezoning a property at or near 221 Kleberg Place AGENDA MEMORANDUM Public Hearing & First Reading Ordinance for the City Council Meeting 01/21/20 Second Reading Ordinance for the City Council Meeting 01/28/20 Public Input Process Number of Notices Mailed 15 within 200-foot notification area 5 outside notification area As of November 8, 2019: In Favor 0 inside notification area 0 outside notification area In Opposition 0 inside notification area 0 outside notification area Totaling 0.00% of the land within the 200-foot notification area in opposition. Commission Recommendation Planning Commission recommended approval of the change of zoning from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District on November 13, 2019. ALTERNATIVES: 1. Denial of the change of zoning from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District. 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 “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District with following vote count. Vote Count: For: 8 Opposed: 0 Absent: 1 Abstained: 0 LIST OF SUPPORTING DOCUMENTS: Ordinance Presentation - Aerial Map Planning Commission Final Report Zoning Case No. 1119-01, SCCBH, LLC. (District 1). Ordinance rezoning property at or near 221 Kleberg Place from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District. WHEREAS, with proper notice to the public, a public hearing was held during a meeting of the Planning Commission during which all interested persons were allowed to appear and be heard; WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding the application 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 during a meeting of the City Council, during which all interested persons were allowed to appear and be heard; WHEREAS, the City Council has determined that this rezoning is not detrimental to the public health, safety, or general welfare of the City of Corpus Christi and its citizens; and WHEREAS, the City Council finds that this rezoning will promote the best and most orderly development of the properties affected thereby, and to be affected thereby, in the City of Corpus Christi. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Unified Development Code (“UDC”) and corresponding UDC Zoning Map of the City of Corpus Christi, Texas is amended by changing the zoning on the subject property described as Lot 88R, Block I, Corpus Beach Hotel Addition as shown in Exhibit “A”: from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District. The subject property is located at or near 221 Kleberg Place. Exhibit A, which is a map of the subject property, is attached to and incorporated in this ordinance. SECTION 2. 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 including the penalties for violations as made and provided for in Article 10 of the UDC. SECTION 3. To the extent this amendment to the UDC represents a deviation from the City’s Comprehensive Plan, the Comprehensive Plan is amended to conform to the UDC, as it is amended by this ordinance. Page 2 of 4 SECTION 4. All ordinances or parts of ordinances specifically pertaining to the zoning of the subject property that are in conflict with this ordinance are hereby expressly repealed. SECTION 5. A violation of this ordinance, or requirements implemented under this ordinance, constitutes an offense punishable as provided in Article 1, Section 1.10.1 of the UDC, Article 10 of the UDC, and/or Section 1-6 of the Corpus Christi Code of Ordinances. SECTION 6. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 7. This ordinance shall become effective upon publication. Page 3 of 4 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 _________________, 2020. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor Page 4 of 4 Exhibit A PLANNING COMMISSION FINAL REPORT Case No. 1119-01 INFOR No. 19ZN1029 Planning Commission Hearing Date: November 13, 2019 Applicant & Legal Description Owner: SCCBH, LLC. Applicant: Urban Engineering Location Address: 213 Kleberg Place Legal Description: Lot 88R, Block I, Corpus Beach Hotel Addition, located along the south side of Kleberg Place, west of North Beach, and east of Surfside Boulevard. Zoning Request From: “CR-1” Resort Commercial District To: “CR-3” Resort Commercial District Area: 0.99 acres Purpose of Request: To allow for the construction of a hotel. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site “CR-1” Resort Commercial Vacant Mixed Use North “CR-1” Resort Commercial Vacant and Commercial Mixed Use South “CR-1” Resort Commercial Commercial Mixed Use East “RM-AT” Multifamily AT Park (North Beach) Permanent Open Space (North Beach) West “CR-1” Resort Commercial and “RM-AT” Multifamily AT Medium Density Residential and Commercial Mixed Use ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Downtown Area Development Plan and is planned for mixed uses. The proposed rezoning to the “CR-3” Resort Commercial District is consistent with the adopted Comprehensive Plan (Plan CC). Map No.: 044047 Zoning Violations: None Transportation Transportation and Circulation: The subject property has approximately 300 feet of street frontage along Kleberg Place which is designated as a “Local/Residential” Street and approximately 200 feet of street frontage along Golf Place which is designated as a “C1” Minor Collector Street. According to the Urban Transportation Plan, “C1” Minor 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 Kleberg Place “Local/Residential” 50’ ROW 28’ paved 38’ ROW 25’ paved N/A Golf Place “C1” Minor Collector 60’ ROW 40’ paved 38’ ROW 25’ paved N/A Staff Summary: Requested Zoning: The applicant is requesting a rezoning from the “CR-1” Resort Commercial District to the “CR-3” Resort Commercial District to allow for the construction of a hotel. Development Plan: The subject property is 0.99 acres in size. The owner is proposing the construction of a 52 room hotel. There will be 60 total parking spaces (2 accessible). It will consist of a single building, approximately 60 feet height. The ground floor will be used as parking and the structure will be elevated to meet base flood elevation requirements. Development includes a pool in front of the building on the beach side. The hotel office will be open 24 hours a day and the hotel will employ approximately 20 employees (total) during the various shifts. Right-of-way dedication that was required with platting reduced the buildable area and has limited the flexibility of the hotel design. The requested change of zoning will allow for the space needed for the development. Existing Land Uses & Zoning: The subject property is currently zoned “CR-1” Resort Commercial District, consists of vacant land, and has remained relatively undeveloped since annexation in 1935. To the north is a hotel (Sea Shell Inn) zoned “CR-1” Resort Commercial District. To the south is a hotel (Quality Inn and Suites) zoned “CR-1” Resort Commercial District. To the east is North Beach zoned “RM-AT” Multifamily AT District. To the west are vacant properties and two small rental cottages (Surfside Cottages) and a restaurant (Yo Philly Cheese Steaks) zoned “CR-1” Resort Commercial District and a vacant lot zoned “RM-AT” Multifamily AT District. AICUZ: The subject property is not located in one of the Navy’s Air Installation Compatibility Use Zones (AICUZ). Plat Status: The property is platted. Utilities: Water: 6-inch ACP line located along Golf Place. Wastewater: 8-inch VCP line located along Golf Place. Gas: 2-inch Service Line located along Golf Place. Storm Water: 24-inch located along Golf Place. Plan CC & Area Development Plan Consistency: The subject property is located within the boundaries of the Downtown Area Development Plan and is planned for mixed uses. Staff Report Page 3 The proposed rezoning to the “CR-3” Resort Commercial District is consistent with 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). Department Comments: • The proposed rezoning is consistent with the adopted Comprehensive Plan (Plan CC). The proposed rezoning is compatible with neighboring properties and with the general character of the surrounding area. This rezoning does not have a negative impact upon the surrounding neighborhood. • Key difference between the “CR-1” and “CR-3” Districts is in regards to setbacks. The “CR-1” District requires a 20-foot street (front) yard setback. The “CR-3” District requires a 10-foot street (front) yard setback. The granting of the change of zoning will allow a reduced setback for the construction of the hotel. • Several properties to the north and south including the USS Lexington and Fajitaville along North beach are zoned “CR-3” District. • A buffer yard will be required between the potential “CR-3” District and the “RM-AT” District to the west. The required buffer yard will be a Type A Buffer Yard is a 10-foot yard with at least 5-points. Planning Commission and Staff Recommendation (November 13, 2019): Approval of the change of zoning from the “CR-1” Resort Commercial District to the “CR- 3” Resort Commercial District. Public Notification Number of Notices Mailed – 15 within 200-foot notification area 5 outside notification area As of November 8, 2019: In Favor – 0 inside notification area – 0 outside notification area In Opposition – 0 inside notification area – 0 outside notification area Totaling 0.00% of the land within the 200-foot notification area in opposition. Attachments: A. Location Map (Existing Zoning & Notice Area) B. Public Comments Received (if any) https://corpuschristi.sharepoint.com/sites/DevelopmentServices/DevelopmentSvcs/SHARED/ZONING CASES/2019/1119-01 SCCBH, LLC/Council Documents/Report - SCCBH, LLC.docx Staff Report Page 4 SCCBH, LLC. Rezoning for a Property at 213 Kleberg Place From “CR-1” To “CR-3” Zoning Case #1119 -01 N City Council January 21, 2020 2 N 4.62 Acre Remainder Aerial Overview 3 Zoning Pattern 4 Planning Commission and Staff Recommendation Approval of the “CR-3” Resort Commercial District 5 Public Notification 15 Notices mailed inside 200’ buffer 5 Notices mailed outside 200’ buffer Notification Area Opposed: 0 (0.00%) In Favor: 0 6 UDC Requirements Buffer Yards: CR-3 to RM-AT: Type A: 10’ & 10 pts. Setbacks: Street: 10 feet Side/Rear: 0 feet Parking: 1 per room Landscaping, Screening, and Lighting Standards Uses Allowed: Multifamily, Offices, Medical, Restaurants, Retail, Bars, and Hotels. 7 Utilities Water: 6-inch ACP Wastewater: 8-inch VCP Gas: 2-inch Service Line Storm Water: 24-inch Line DATE: December 9, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, AIA, Director Development Services Department AlRaymond@cctexas.com (361) 826-3575 CAPTION: Zoning Case No. 1119-02, H&P North Beach, LLC (District 1). Ordinance rezoning property at or near 202, 229, and 230 Kleberg Place from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. SUMMARY: The purpose of the zoning request is to allow for the construction of a parking lot for the Sea Shell Inn motel. BACKGROUND AND FINDINGS: The subject property is 1.05 acres in size. The subject property is adjacent to the owner's existing motel. Recent development of neighboring properties has impacted the current parking situation. According to the applicant, the subject property will serve as additional parking to service the existing adjacent motel. The “RM-AT” District only allows multifmialy uses up to 18 dwelling units per acre and overnight accommodation uses. The “CR-3” District allows a wide variety of uses including Multifamily, Offices, Medical, Restaurants, Retail, Bars, and Hotels. Conformity to City Policy The subject property is located within the boundaries of the Downtown Area Development Plan and is planned for mixed land uses. The proposed rezoning is consistent with the adopted Comprehensive Plan (Plan CC). The proposed rezoning is compatible with neighboring properties and with the general character of the surrounding area. The surrounding properties include uses such as, hotels, retail, and restaurants. This rezoning does not have a negative impact upon the surrounding neighborhood. Key differences between the “RM-AT” and “CR-3” Districts are in regards to setbacks. The “RM-AT” District requires a 20-foot street (front) yard setback. The “CR-3” District requires a 10-foot street (front) yard setback. Additionally, the “CR- 3” District does not require side and rear setbacks. The granting of the change of zoning will allow reduced setbacks for future development of the property. A buffer yard will be required between the potential “CR-3” District and the “RM-AT” District to the west. The required buffer yard will be a Type A Buffer Yard is a 10-foot yard with at least 5-points. Rezoning a property at or near 202, 229, and 230 Kleberg Place AGENDA MEMORANDUM Public Hearing & First Reading Ordinance for the City Council Meeting 01/21/20 Second Reading Ordinance for the City Council Meeting 01/28/20 Public Input Process Number of Notices Mailed 10 within 200-foot notification area 5 outside notification area As of November 8, 2019: In Favor 0 inside notification area 0 outside notification area In Opposition 0 inside notification area 0 outside notification area Totaling 0.00% of the land within the 200-foot notification area in opposition. Commission Recommendation Planning Commission recommended approval of the change of zoning from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District on November 13, 2019. ALTERNATIVES: 1. Denial of the change of zoning from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. FISCAL IMPACT: There is no fiscal impact associated with this item. RECOMMENDATION: Staff recommends approval of the zoning request. Planning Commission recommended approval of the change of zoning from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District with following vote count. Vote Count: For: 8 Opposed: 0 Absent: 1 Abstained: 0 LIST OF SUPPORTING DOCUMENTS: Ordinance Presentation - Aerial Map Planning Commission Final Report Zoning Case No. 1119-02, H&P North Beach, LLC (District 1). Ordinance rezoning property at or near 202, 229, and 230 Kleberg Place from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. WHEREAS, with proper notice to the public, a public hearing was held during a meeting of the Planning Commission during which all interested persons were allowed to appear and be heard; WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding the application 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 during a meeting of the City Council, during which all interested persons were allowed to appear and be heard; WHEREAS, the City Council has determined that this rezoning is not detrimental to the public health, safety, or general welfare of the City of Corpus Christi and its citizens; and WHEREAS, the City Council finds that this rezoning will promote the best and most orderly development of the properties affected thereby, and to be affected thereby, in the City of Corpus Christi. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Unified Development Code (“UDC”) and corresponding UDC Zoning Map of the City of Corpus Christi, Texas is amended by changing the zoning on the subject property being 1.05 Acre Tract, being all of Lots 67 through 71, 80 through 84 and fractional Lots between Lot 84, Block II and Hamilton Road and Lot 67, Block II and Hamilton Road, Corpus Beach Hotel Addition, a map of which is recorded in Volume 69, Page 61, Map Records of Nueces County as shown in Exhibit “A” & "B": from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. The subject property is located at or near 202, 229, and 230 Kleberg Place. Exhibit A, which is the Metes and Bounds of the subject property, and Exhibit B, which is a sketch to accompany, are attached to and incorporated in this ordinance. SECTION 2. 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 including the penalties for violations as made and provided for in Article 10 of the UDC. SECTION 3. To the extent this amendment to the UDC represents a deviation from the Page 2 of 5 City’s Comprehensive Plan, the Comprehensive Plan is amended to conform to the UDC, as it is amended by this ordinance. SECTION 4. All ordinances or parts of ordinances specifically pertaining to the zoning of the subject property that are in conflict with this ordinance are hereby expressly repealed. SECTION 5. A violation of this ordinance, or requirements implemented under this ordinance, constitutes an offense punishable as provided in Article 1, Section 1.10.1 of the UDC, Article 10 of the UDC, and/or Section 1-6 of the Corpus Christi Code of Ordinances. SECTION 6. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 7. This ordinance shall become effective upon publication. Page 3 of 5 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 _________________, 2020. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor Page 4 of 5 Page 5 of 5 PLANNING COMMISSION FINAL REPORT Case No. 1119-02 INFOR No. 19ZN1030 Planning Commission Hearing Date: November 13, 2019 Applicant & Legal Description Owner: H&P North Beach, LLC Applicant: Urban Engineering Location Address: 202, 229, and 230 Kleberg Place Legal Description: Being 1.05 Acre Tract, being all of Lots 67 through 71, 80 through 84 and fractional Lots between Lot 84, Block II and Hamilton Road and Lot 67, Block II and Hamilton Road, Corpus Beach Hotel Addition, a map of which is recorded in Volume 69, Page 61, Map Records of Nueces County, located along the north side of Kleberg Place, west of North Beach, and east of Surfside Boulevard. Zoning Request From: “RM-AT” Multifamily AT District To: “CR-3” Resort Commercial District Area: 1.05 acres Purpose of Request: To allow for the construction of a parking lot. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site “RM-AT” Multifamily AT Vacant Mixed Use North “RM-AT” Multifamily AT and “CR-3” Resort Commercial Vacant and Commercial Mixed Use South “CR-1” Resort Commercial Vacant and Commercial Mixed Use East “RM-AT” Multifamily AT Commercial and Park (North Beach) Mixed Use and Permanent Open Space (North Beach) West “RM-AT” Multifamily AT and “CR-1” Resort Commercial Vacant Mixed Use ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Downtown Area Development Plan and is planned for mixed uses. The proposed rezoning to the “CR-3” Resort Commercial District is consistent with the adopted Comprehensive Plan (Plan CC). Map No.: 044047 Zoning Violations: None Staff Report Page 2 Transportation Transportation and Circulation: The subject property has approximately 250 feet of street frontage along Kleberg Place which is designated as a “Local/Residential” Street, approximately 260 feet of street frontage along Paul Place which is designated as a “Local/Residential” Street and approximately 200 feet of street frontage along Surfside Boulevard which is designated as a “C1” Minor Collector Street. According to the Urban Transportation Plan, “C1” Minor Collector Streets can convey a capacity between 1,000 to 3,000 Average Daily Trips (ADT). Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume Kleberg Place “Local/Residential” 50’ ROW 28’ paved 38’ ROW 25’ paved N/A Surfside Boulevard “C1” Minor Collector 60’ ROW 40’ paved 115’ ROW 21’ paved N/A Paul Place “Local/Residential” 50’ ROW 28’ paved 40’ ROW 23’ paved N/A Staff Summary: Requested Zoning: The applicant is requesting a rezoning from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District to allow for the construction of a parking lot for the adjacent Sea Shell Inn motel. Development Plan: The subject property is 1.05 acres in size. The subject property is adjacent to the owner's existing hotel. Recent development of neighboring properties has impacted the current parking situation. According to the applicant, the subject property will serve as additional parking to service the existing adjacent motel. Existing Land Uses & Zoning: The subject property is currently zoned “RM-AT” Multifamily AT District, consists of vacant land, and has remained relatively undeveloped since annexation in 1935. To the north is a hotel (Hotel de Ville) zoned “RM-AT” Multifamily AT District and a restaurant (Fajitaville) zoned “CR-3” Resort Commercial District. To the south is a restaurant (Yo Philly Cheese Steaks) zoned “CR-1” Resort Commercial District. To the east is a hotel (Sea Shell Inn) zoned “RM-AT” Multifamily AT District and North Beach zoned “RM-AT” Multifamily AT District. To the west is Surfside Boulevard and State Highway 181 zoned “RM-AT” Multifamily AT District and “CR-1” Resort Commercial District. AICUZ: The subject property is not located in one of the Navy’s Air Installation Compatibility Use Zones (AICUZ). Plat Status: The property is platted. Utilities: Water: 6-inch ACP line located along Paul Place. Wastewater: 8-inch VCP line located along Paul Place. Staff Report Page 3 Gas: 2-inch Service Line located along Paul Place. Storm Water: 24-inch located along Paul Place. Plan CC & Area Development Plan Consistency: The subject property is located within the boundaries of the Downtown Area Development Plan and is planned for mixed uses. The proposed rezoning to the “CR-3” Resort Commercial District is consistent with 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). Department Comments: • The proposed rezoning is consistent with the adopted Comprehensive Plan (Plan CC). The proposed rezoning is compatible with neighboring properties and with the general character of the surrounding area. This rezoning does not have a negative impact upon the surrounding neighborhood. • Key differences between the “RM-AT” and “CR-3” Districts are in regards to setbacks. The “RM-AT” District requires a 20-foot street (front) yard setback. The “CR-3” District requires a 10-foot street (front) yard setback. Additionally, the “CR-3” District does not require side and rear setbacks. The granting of the change of zoning will allow reduced setbacks for future development of the property. • A buffer yard will be required between the potential “CR-3” District and the “RM-AT” District to the west. The required buffer yard will be a Type A Buffer Yard is a 10-foot yard with at least 5-points. Planning Commission and Staff Recommendation (November 13, 2019): Approval of the change of zoning from the “RM-AT” Multifamily AT District to the “CR-3” Resort Commercial District. Public Notification Number of Notices Mailed – 10 within 200-foot notification area 5 outside notification area As of November 8, 2019: In Favor – 0 inside notification area – 0 outside notification area In Opposition – 0 inside notification area – 0 outside notification area Totaling 0.00% of the land within the 200-foot notification area in opposition. Attachments: A. Location Map (Existing Zoning & Notice Area) B. Public Comments Received (if any) https://corpuschristi.sharepoint.com/sites/DevelopmentServices/DevelopmentSvcs/SHARED/ZONING CASES/2019/1119-02 H&P North Beach, LLC/Council Documents/Report- H&P North Beach, LLC.docx Staff Report Page 4 H&P North Beach, LLC. Rezoning for a Property at 202, 229, and 230 Kleberg Place From “RM-AT” To “CR-3” Zoning Case #1119 -02 N City Council January 21, 2020 2 N 4.62 Acre Remainder Aerial Overview 3 Zoning Pattern 4 Planning Commission and Staff Recommendation Approval of the “CR-3” Resort Commercial District 5 Public Notification 10 Notices mailed inside 200’ buffer 5 Notices mailed outside 200’ buffer Notification Area Opposed: 0 (0.00%) In Favor: 0 6 UDC Requirements Buffer Yards: CR-3 to RM-AT: Type A: 10’ & 10 pts. Setbacks: Street: 10 feet Side/Rear: 0 feet Parking: N/A Landscaping, Screening, and Lighting Standards Uses Allowed: Multifamily, Offices, Medical, Restaurants, Retail, Bars, and Hotels. 7 Utilities Water: 6-inch ACP Wastewater: 8-inch VCP Gas: 2-inch Service Line Storm Water: 24-inch Line DATE: December 9, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, AIA, Director Development Services Department AlRaymond@cctexas.com (361) 826-3575 CAPTION: Zoning Case No. 1219-01, Paula Gaut Properties, Inc. (District 5). Ordinance rezoning property at or near 6734 Saratoga Boulevard (State Highway 357) from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. SUMMARY: The purpose of the zoning request is to allow for the construction of a retail center. BACKGROUND AND FINDINGS: The subject property is 0.82 acres in size. According to the applicant the purpose of the request is to construct a retail center. The applicant has not submitted any specific plans concerning the retail center. Conformity to City Policy The subject property is located within the boundaries of the Southside Area Development Plan and is planned for commercial uses. The proposed rezoning is consistent with the adopted Comprehensive Plan (Plan CC). It is compatible with the adjoining residential properties and does not have a negative impact upon the adjacent commercial properties. The property is currently vacant and is a remaining “RS-6” Single-Family 6 District tract. The subject property has never been developed. Surrounding properties have been rezoned to commercial zoning districts indicating a pattern towards commercial development along the Saratoga Boulevard corridor. Public Input Process Number of Notices Mailed 9 within 200-foot notification area 6 outside notification area As of November 27, 2019: In Favor 0 inside notification area In Opposition 0 inside notification area Rezoning a property at or near 6734 Saratoga Boulevard (State Highway 357) AGENDA MEMORANDUM Public Hearing & First Reading Ordinance for the City Council Meeting 01/21/20 Second Reading Ordinance for the City Council Meeting 01/28/20 0 outside notification area 0 outside notification area Totaling 0.00% of the land within the 200-foot notification area in opposition. Commission Recommendation Planning Commission recommended approval of the change of zoning from the “RS-6” Single- Family 6 District to the “CG-2” General Commercial District on December 4, 2019. ALTERNATIVES: 1. Denial of the change of zoning from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. 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 “RS-6” Single- Family 6 District to the “CG-2” General Commercial District with following vote count. Vote Count: For: 7 Opposed: 0 Absent: 2 Abstained: 0 LIST OF SUPPORTING DOCUMENTS: Ordinance Presentation - Aerial Map Planning Commission Final Report Zoning Case No. 1219-01, Paula Gaut Properties, Inc. (District 5). Ordinance rezoning property at or near 6734 Saratoga Boulevard (State Highway 357) from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. WHEREAS, with proper notice to the public, a public hearing was held during a meeting of the Planning Commission during which all interested persons were allowed to appear and be heard; WHEREAS, the Planning Commission has forwarded to the City Council its final report and recommendation regarding the application 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 during a meeting of the City Council, during which all interested persons were allowed to appear and be heard; WHEREAS, the City Council has determined that this rezoning is not detrimental to the public health, safety, or general welfare of the City of Corpus Christi and its citizens; and WHEREAS, the City Council finds that this rezoning will promote the best and most orderly development of the properties affected thereby, and to be affected thereby, in the City of Corpus Christi. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Unified Development Code (“UDC”) and corresponding UDC Zoning Map of the City of Corpus Christi, Texas is amended by changing the zoning on the subject property described as Lot P, Block 29, Bass Subdivision as shown in Exhibit “A”: from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. The subject property is located at or near 6734 Saratoga Boulevard (State Highway 357). Exhibit A, which is a map of the subject property, is attached to and incorporated in this ordinance. SECTION 2. 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 including the penalties for violations as made and provided for in Article 10 of the UDC. SECTION 3. To the extent this amendment to the UDC represents a deviation from the City’s Comprehensive Plan, the Comprehensive Plan is amended to conform to the UDC, as it is amended by this ordinance. Page 2 of 4 SECTION 4. All ordinances or parts of ordinances specifically pertaining to the zoning of the subject property that are in conflict with this ordinance are hereby expressly repealed. SECTION 5. A violation of this ordinance, or requirements implemented under this ordinance, constitutes an offense punishable as provided in Article 1, Section 1.10.1 of the UDC, Article 10 of the UDC, and/or Section 1-6 of the Corpus Christi Code of Ordinances. SECTION 6. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 7. This ordinance shall become effective upon publication. Page 3 of 4 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 _________________, 2020. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor Page 4 of 4 Exhibit A PLANNING COMMISSION FINAL REPORT Case No. 1219-01 INFOR No. 19ZN1035 Planning Commission Hearing Date: December 4, 2019 Applicant & Legal Description Owner: Paula Gaut Properties, Inc. Applicant: Clower Company Location Address: 6734 Saratoga Boulevard (State Highway 357) Legal Description: Lot P, Block 29, Bass Subdivision, located along the north side of Saratoga Boulevard (State Highway 357), west of Airline Road, and east of Rodd Field Road. Zoning Request From: “RS-6” Single-Family 6 District To: “CG-2” General Commercial District Area: 0.82 acres Purpose of Request: To allow for the construction of a retail center. Existing Zoning and Land Uses Existing Zoning District Existing Land Use Future Land Use Site “RS-6” Single-Family 6 Vacant Commercial North “RS-6” Single-Family 6 Vacant and Low Density Residential Commercial South “CG-2” General Commercial Vacant Mixed Use East “CG-2” General Commercial Commercial Commercial West “CN-1” Neighborhood Commercial Professional Office Commercial ADP, Map & Violations Area Development Plan: The subject property is located within the boundaries of the Southside Area Development Plan and is planned for commercial use. The proposed rezoning to the “CG-2” General Commercial District is consistent with the adopted Comprehensive Plan (Plan CC). Map No.: 042032 Zoning Violations: None Transportation Transportation and Circulation: The subject property has approximately 135 feet of street frontage along Saratoga Boulevard (State Highway 357) which is designated as a “A3” Primary Arterial Street. According to the Urban Transportation Plan, “A3” Primary Arterial Streets can convey a capacity between 30,000 to 48,000 Average Daily Trips (ADT). Staff Report Page 2 Street R.O.W. Street Urban Transportation Plan Type Proposed Section Existing Section Traffic Volume Saratoga Boulevard (SH 357) “A3” Primary Arterial 130’ ROW 79’ paved 125’ ROW 66’ paved 13,747 ADT (2013) Staff Summary: Requested Zoning: The applicant is requesting a rezoning from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District to allow for the construction of a retail center. Development Plan: The subject property is 0.82 acres in size. The applicant has not submitted any specific plans concerning the retail center. Existing Land Uses & Zoning: The subject property is currently zoned “RS-6” Single- Family 6 District, consists of vacant land, and has remained undeveloped since annexation in 1962. To the north is a single-family home zoned “RS-6” Single-Family 6 District. To the south is vacant unplatted land zoned “CG-2” General Commercial District. To the east is a real estate office zoned “CG-2” General Commercial District. To the west is a retail store (Dollar General) zoned “CN-1” Neighborhood Commercial District. AICUZ: The subject property is not located in one of the Navy’s Air Installation Compatibility Use Zones (AICUZ). Plat Status: The property is platted. Utilities: Water: 12-inch ACP line located along Saratoga Boulevard (SH 357). Wastewater: 8-inch PVC line located along Saratoga Boulevard (SH 357). Gas: 8-inch Service Line located along Saratoga Boulevard (SH 357). Storm Water: 48-inch located along Saratoga Boulevard (SH 357). Plan CC & Area Development Plan Consistency: The subject property is located within the boundaries of the Southside Area Development Plan and is planned for commercial use. The proposed rezoning to the “CG-2” General Commercial District is consistent with 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 the design of commercial centers in a manner that minimizes the impacts of automobile intrusion, noise and visual blight on surrounding areas (Future Land Use, Zoning, and Urban Design Policy Statement 3). Staff Report Page 3 • Screening fences, open space or landscaping can provide an essential buffer between shopping and residential areas (Future Land Use, Zoning, and Urban Design Policy Statement 3). Department Comments: • The proposed rezoning is consistent with the adopted Comprehensive Plan (Plan CC), compatible with the adjoining residential properties, and does not have a negative impact upon the adjacent commercial properties. • The property is currently vacant and is a remaining “RS-6” Single-Family 6 tract. The subject property has never been developed. • Surrounding properties have been rezoned to commercial zoning districts indicating a pattern towards commercial development along the Saratoga Boulevard corridor. • If the “CG-2” General Commercial District is approved, the retail development will need to abide all requirements of the Unified Development Code (UDC). • Specifically, a Type C buffer yard will be required for the northern property line. Type C buffer yards consist of a 15-foot wide buffer and at least 15 points. Planning Commission and Staff Recommendation (December 4, 2019): Approval of the change of zoning from the “RS-6” Single-Family 6 District to the “CG-2” General Commercial District. Public Notification Number of Notices Mailed – 9 within 200-foot notification area 6 outside notification area As of November 27, 2019: In Favor – 0 inside notification area – 0 outside notification area In Opposition – 0 inside notification area – 0 outside notification area Totaling 0.00% of the land within the 200-foot notification area in opposition. Attachments: A. Location Map (Existing Zoning & Notice Area) B. Public Comments Received (if any) https://corpuschristi.sharepoint.com/sites/DevelopmentServices/DevelopmentSvcs/SHARED/ZONING CASES/2019/1219-01 Paula Gaut Properties, Inc. (Clower)/Council Documents/Report - Paula Gaut Properties, Inc.docx Staff Report Page 4 Paula Gaut Properties, Inc. Rezoning for a Property at 6734 Saratoga Boulevard From “RS-6” To “CG-2” Zoning Case #1219-01 N City Council January 11, 2020 2 N 4.62 Acre Remainder Aerial Overview 3 Zoning Pattern 4 Planning Commission and Staff Recommendation Approval of the “CG-2” General Commercial District 5 Public Notification 9 Notices mailed inside 200’ buffer 6 Notices mailed outside 200’ buffer Notification Area Opposed: 0 (0.00%) In Favor: 0 6 UDC Requirements Buffer Yards: CG-2 to RS-6: Type C: 15’ & 15 pts. Setbacks: Street: 20 feet Side/Rear: 0 feet Parking: 1:250 square feet Landscaping, Screening, and Lighting Standards Uses Allowed: Multifamily, Offices, Medical, Restaurants, Retail, Bars, and Hotels. 7 Utilities Water: 12-inch ACP Wastewater: 8-inch PVC Gas: 8-inch Service Line Storm Water: 48-inch Line DATE: December 23, 2019 TO: Peter Zanoni, City Manager FROM: Robert Rocha, Fire Chief rrocha@cctexas.com 361-826-3938 CAPTION: Ordinance accepting a grant from the Flint Hills Resources 2019 Helping Heroes Program in the amount of $10,000 to purchase hazmat equipment; and appropriating the funds into the FY2020 Fire Grant Fund. SUMMARY: This ordinance authorizes the City Manager, or designee, to execute all documents necessary to accept and appropriate a grant totaling $10,000.00 from the Flint Hills Resources 2019 Helping Heroes Grant Program. The funds are to be used to update equipment used to detect and identify hazardous materials. Additional equipment u sed to calibrate this detection equipment will also be purchased . All equipment purchased through this grant will support state and local efforts to prevent terroristic and other catastrophic events. BACKGROUND AND FINDINGS: Flint Hills Resources began the Helping Heroes program in 2012. This program provides grants for training, education, equipment, and emergency notification needs of Texas fire departments and emergency responders. Since starting the program, more than $1 million has been awarded to departments in Texas. The Flint Hills Resources 2019 Helping Heroes program awarded the City of Corpus Christi Fire Department a grant for FY2020 for $10,000.00 on November 14, 2019. This grant will allow for the purchase of updated equipment such as a replacement pump used to detect and identify hazardous materials. The grant money will also allow for the purchase of a calibration device used to more readily calibrate and test air monitors to Acceptance of a grant from Flint Hills Resources in the amount of $10,000.00 from their 2019 Helping Heroes Grant Program. AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting January 21, 2020 Second Reading Ordinance for the City Council Meeting January 28, 2020 ensure their accuracy and reliability. ALTERNATIVES: Deny funding and seek alternative funding. FISCAL IMPACT: Appropriating $10,000.00 grant to the FY2020 Fire Grant Fund. Funding Detail: Fund: 1062 Organization/Activity: 840020L Mission Element: 093 Project # (CIP Only): Account: 530500 RECOMMENDATION: Staff recommends approval of this ordinance to accept and appropriate a grant totaling $10,000.00 for the purchase of hazmat equipment. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance accepting a grant from the Flint Hills Resources 2019 Helping Heroes Program in the amount of $10,000 to purchase hazmat equipment; and appropriating the funds into the Fire Grant Fund. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: The City Manager or designee is authorized to accept a grant from Flint Hills Resources 2019 Helping Heroes Program in the amount of $10,000 to be used to support the Corpus Christi Fire Department to purchase hazmat equipment. SECTION 2: That $10,000 from Flint Hills Resources 2019 Helping Heroes Program is appropriated in the Fire Grant Fund No. 1062. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 _________________, 2020. ATTEST: _________________________ ________________________ Rebecca L. Huerta Joe McComb City Secretary Mayor AGENDA MEMORANDUM 1st Reading Ordinance for the City Council Meeting of January 21, 2020 2nd Reading Ordinance for the City Council Meeting of January 28, 2020 DATE: January 7, 2020 TO: Peter Zanoni, City Manager THRU: Constance P. Sanchez, Chief Financial Officer constancep@cctexas.com (361) 826-3189 FROM: Eddie Houlihan, Director of Management & Budget eddieho@cctexas.com (361) 826-3792 Kamil Taras, Capital Improvement Program Manager kamilt@cctexas.com (361) 826-3242 CAPTION: Ordinance to appropriate (a) $148,509.14 interest earnings from Airport CIP Funds for City’s match for future FAA Grant Projects; (b) $3,119,110.54 interest earnings from Bond Proceeds for Public Health and Safety, Public Facilities, Parks and Recreation, and Street bond projects; (c) $3,553,010.17 interest earnings from Utility Revenue Bond Funds for Utility projects (d) $359,757.13 interest earnings from Specialty Bond Funds including Texas Military Preparedness Commission, Public Property Finance Contractual Obligations, Seawall, Type B Streets and Packery Channel for approved specialty projects; and (e) $955,002.37 in other unappropriated funds including street assessments, street closure fees and Federal Government reimbursements for Streets and Utilities projects; changing the FY 2020 Capital Improvement Budget adopted by Ordinance No. 031870 to increase expenditures accordingly. SUMMARY: Appropriating capital proceeds accrued from July 1, 2018 through September 30, 2019, makes these funds available for approved capital projects within their respective department. BACKGROUND AND FINDINGS: This agenda item is a routine practice to efficiently manage City finances and provides additional funds which can be used for approved projects within the funds. It also facilitates the closure of older funds to comply with arbitrage regulations and is a responsible fiduciary practice for governmental accounting. These unappropriated capital revenues come from a variety of sources including interest earnings, miscellaneous revenues collected, and reimbursements. Appropriate Fund Proceeds Fiscal Year 2019 - 2020 ALTERNATIVES: The alternative to would be to not approve the appropriation, which would result in additional debt needs. Additionally, based on review of best practices from across the state we will be recommending in the next budget cycle an addition of annual interest appropriation to the financial policies. FINANCIAL IMPACT: This item will appropriate $148,509.14 to Airport CIP Funds, $3,119,110.54 to Bond Proceeds Funds, $3,553,010.17 to Utility Revenue Bond Funds, $359,757.13 to Specialty Bond Funds and $955,002.37 in other CIP funds from interest earnings and other unappropriated earnings. These funds will be used for the following purposes: City’s match for future FAA Grant Projects, Bayfront, Public Facilities, Fire, Police, Public Health and Safety, Sanitary Landfill, Library, Convention Center, Parks, Streets, and Utilities projects and contingencies. FUNDING DETAIL: Please reference Attachment 1 RECOMMENDATION: Staff recommends approval of this item. LIST OF SUPPORTING DOCUMENTS: Attachment 1 Ordinance Ordinance to appropriate (a) $148,509.14 interest earnings from Airport CIP Funds for City’s match for future FAA Grant Projects; (b) $3,119,110.54 interest earnings from Bond Proceeds for Public Health and Safety, Public Facilities, Parks and Recreation, and Street bond projects; (c) $3,553,010.17 interest earnings from Utility Revenue Bond Funds for Utility projects (d) $359,757.13 interest earnings from Specialty Bond Funds including Texas Military Preparedness Commission, Public Property Finance Contractual Obligations, Seawall, Type B Streets and Packery Channel for approved specialty projects; and (e) $955,002.37 in other unappropriated funds including street assessments, street closure fees and Federal Government reimbursements for Streets and Utilities projects; changing the FY 2020 Capital Improvement Budget adopted by Ordinance No. 031870 to increase expenditures accordingly. NOW THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI: Section 1. An amount of $148,509.14 in Airport Capital Improvement Plan (CIP) interest earnings is appropriated in the funds as listed in Attachment 1, Section 1 for the City’s match for future FAA Grant Projects. Section 2. An amount of $3,119,110.54 in Bond Proceed interest earnings for Bayfront, Public Facilities, Fire, Police, Public Health and Safety, Sanitary Landfill, Library, Convention Center, Parks, and Streets is appropriated in the funds as listed in Attachment 1, Section 2 for the stated bond projects not yet complete, similar projects to be approved by City Council and/or the payment of debt service. Section 3. An amount of $3,553,010.17 in Utility Revenue Bond interest earnings and FEMA reimbursements is appropriated in the funds as listed in Attachment 1, Section 3 for the support of the City’s approved Capital Improvement Program. Section 4. An amount of $359,757.13 in Specialty Bond Proceed interest earnings, Sales Tax Bonds for the Seawall and Arena, Packery Channel Bonds, Energy Efficiency Bonds, and Texas Military Loan proceeds is appropriated in the funds as listed in Attachment 1, Section 4 for the support of the City’s approved Capital Improvement Program, specific military supported projects and/or as determined by the Type A/B, TIF2 Boards. Section 5. An amount of $955,002.37 in other unappropriated funds for street assessments/closures, interest earnings and Federal Government Contribution is appropriated in the funds as listed in Attachment 1, Section 5 for the repair of city streets and other street expenses as well as reimbursement of Utility projects expenses. Section 6. The FY 2020 Capital Improvement Budget adopted by Ordinance No. 031870 is changed to increase expenditures by $8,135,389.35. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of _________________, 2020, 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 _________________, 2020, 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 _______________, 2020. ATTEST THE CITY OF CORPUS CHRISTI _____________________ ____________________________ Rebecca Huerta Joe McComb City Secretary Mayor SECTION 1 : AIRPORT Fund #Fund Name Amount 3018 Airport CIP Fund (Capital Reserves)13,485.40 3019 Airport CIP Fund (Other)3,734.06 3024 Airport 2000A CIP Fund (Rev)2,282.94 3025 Airport 2000B Rev/2012 GO 249.57 3026 Airport 2012 CO CIP Fd 22,542.65 4621 AIRPORT PFC (2) FUND (4621)72,997.82 4631 Airport CFC 2010 CO CIP fund 702.80 4632 Airport CFC Fund 32,513.90 AIRPORT TOTAL 148,509.14 SECTION 2 : BOND PROCEEDS Fund #Fund Name Amount 3126 Bayfront Dev 09 GO CIP (Bnd08)18,235.74 3160 City Facilities CIP Fund 1,122.05 3162 Public Fclty 2013 GO Bd 2012 22,346.90 3164 FACMaint CIP 2015 CO 7,331.48 3165 FACMaint CIP 2018 CO 53,177.68 3191 Fire Imprv 09 GO CIP Fd(Bnd08)763.62 3340 Police CIP 43.03 3342 Police 2013 GO (Bond 2012)2,816.66 3365 Sanitary Landfill 2008 CIP(CO)254.63 3366 Public H&S 2013 GO CIP Bd 2012 1,029.07 3367 Landfill 2015 COS 50,713.61 3368 Landfill 2017 COS 17,406.86 3369 Landfill 2018 Tax CO 76,278.24 PUBLIC H&S TOTAL 251,519.57 3226 Library 09 GO CIP Fd (Bond 08)2,150.18 3182 Convention Center 2010 CIP Fund (CO)736.32 3280 Park CIP 1,245.07 3291 Park&Rec 09 GO CIP Fd (Bond08)870.91 3292 Parks & Rec 2010 GO (Bond 08)283.38 3293 Parks & Rec 2013 GO (Bd 2012)76,249.08 3294 Park and Rec 2015 GO (Bd 2014)119,230.98 PARK TOTAL 197,879.42 3530 Street CIP Fund 42,999.53 3541 Street 2005 CIP Fund (GO)42,079.08 3545 Street 08 TN CIP Fund (NT)2,749.54 3546 Street 09 GO CIP Fd (Bond 08)55,615.43 Unappropriated Revenue From Capital Improvement Funds From 07/01/2018 to 09/30/2019 Attachment 1 Fund #Fund Name Amount 3548 Street 2012 GO CIP Fd Bond 08 191,998.94 3549 Street 2013 GO CIP (Bd 2012)136,236.25 3550 Streets 2013 TN (Bd 2014 Dsgn)9,655.72 3551 Streets 2015 GO BD 14 1,134,161.93 3552 Street 2016 CO BD 12 346,378.50 3553 Street 2018 CO BD14 252,677.60 3554 Streets 2018 GO BD16 338,999.71 3555 Streets 2018A CO - Harbor Bridge 25,852.58 3701 Developer Participation Bd2012 20,943.09 3702 Developer Participation Bd2016 66,477.15 STREET TOTAL 2,666,825.05 BONDS TOTAL 3,119,110.54 SECTION 3 : REVENUE BONDS Fund #Fund Name Amount 3480 Storm Water CIP Fund 43.49 3494 Storm Water 2012A CIP Fd RvBd 6,483.27 3495 Storm Water 2012B CIP Rev Bds 55,699.64 3496 Storm Water 2012A CIP (Bd 2012 17,171.82 3497 Storm Water 2013 CIP (Rev Bds)278,093.39 3498 Storm Water 2013 CIP (Bd 2012)61,666.57 4530 STWCP PL Storm Wtr 2015 CIP 124,430.14 4531 STWCP PL Storm Wtr 2015 CIP (Bd Sprt)156,963.58 4540 Storm Water Capital Reserves 185,196.56 STORM WATER TOTAL 885,748.46 3600 Gas CIP Fund 22.00 4551 Gas 09 CIP Fund-(rev bd-08GO)3,427.83 4557 Gas 2013 CIP (Rev Bds)3,883.06 4558 Gas 2013 CIP (bd 2012)3,281.68 4559 Gas cp pl gas 2015 cip 41,260.23 4560 Gas Cap Resv 16,617.75 4561 Gas cp pl gas 2015 cip (Bd Sprt)19,018.84 GAS TOTAL 87,511.39 4080 Water CIP Fund 60,790.82 4089 Water 2012A CIP Fd (RvBd)5,295.70 4091 Water 2012B CIP Fund (Rev Bds)7,350.90 4092 Water 2012A CIP (Bd 2012)6,342.78 4093 Water 2013 CIP (Rev Bds)23,413.21 4094 Water 2013 CIP (Bd 2012)6,980.45 4095 Water 2014 CIP MRP 2 458,423.80 4096 WTRCP PL Water 2015 CIP 83,102.53 4097 WTRCP PL Water 2015 CIP (bd sprt) 19,227.28 4479 Water 2010B REV Txbl BAB 5,991.43 4480 Water capital reserves 54,531.98 4481 Raw Water Supply Development Charge CIP 39,570.16 4482 Swift Bonds 2017 CIP 72,503.76 WATER TOTAL 843,524.80 Fund #Fund Name Amount 3430 Wastewater CIP Fund 680.56 4248 Wastewater 2012A CIP Fd (RvBd)21,634.61 4249 Wastewater 2012B CIP (Rev Bds)114,682.07 4251 Wastewater 2012A CIP (Bd 2012)3,712.00 4252 Wastewater 2013 CIP (Bd 2012)261,399.60 4253 Wastewater 2013 CIP (Rev Bds)11,704.46 4254 WWWCP PL Wastewater 2015 CIP 302,363.59 4255 WWWCP Wastewater 2015 CIP 45,905.19 4256 Wastewater 2017 CIP 123.89 4510 Wastewater Capital Reserves 974,019.55 WASTEWATER TOTAL 1,736,225.52 REVENUE BONDS TOTAL 3,553,010.17 SECTION 4 : SPECIALTY BONDS & OTHER CIP Fund #Fund Name Amount 3542 Street 2007A-1 CIP (TMPC GO)5,753.72 3543 Street 2007A-1 CIP (TMPC CO)72,158.30 TMPC TOTAL 77,912.02 3271 Seawall System CIP Fund 182,817.69 3272 Seawall Maintenance Reserve Fd 5,793.00 3250 Street B Corp CIP 50,741.65 SALES TAX BOND TOTAL 239,352.34 3163 Energy Effcny CIP 2014 PPFCO 13,809.45 13,809.45 3278 Packery Channel Projects TIF#2 28,683.32 SPECIALTY BONDS & OTHER CIP TOTAL 359,757.13 SECTION 5 : OTHER UNAPPROPRIATED FUNDS Fund #Fund Name Amount 3530 Street CIP: Street Assessments 127,469.90 3530 Street CIP: Street Closures 294,733.00 3530 Street CIP: Interest other then investments 22.25 4080 Water CIP: Contribution from Federal Government 532,777.22 OTHER UNAPPROPRIATED FUNDS 955,002.37 Fund ACCT-UNIT ACCOUNT DESC Amount Positive Value 3018 3018-888 Interest on investments (13,485.40) 13,485.40 3019 3019-888 Interest on investments (3,734.06) 3,734.06 3024 3024-888 Interest on investments (2,282.94) 2,282.94 3025 3025-888 Interest on investments (249.57) 249.57 3026 3026-888 Interest on investments (22,542.65) 22,542.65 3126 3126-888 Interest on investments (18,235.74) 18,235.74 3160 3160-888 Interest on investments (1,122.05) 1,122.05 3162 3162-888 Interest on investments (22,346.90) 22,346.90 3163 3163-888 Interest on investments (13,809.45) 13,809.45 3164 3164-888 Interest on investments (7,331.48) 7,331.48 3165 3165-888 Interest on investments (53,177.68) 53,177.68 3182 3182-888 Interest on investments (736.32) 736.32 3191 3191-888 Interest on investments (763.62) 763.62 3226 3226-888 Interest on investments (2,150.18) 2,150.18 3250 3250-888 Interest on investments (50,741.65) 50,741.65 3271 3271-888 Interest on investments (182,817.69) 182,817.69 3272 3272-888 Interest on investments (5,793.00) 5,793.00 3278 3278-888 Interest on investments (28,683.32) 28,683.32 3280 3280-888 Interest on investments (1,245.07) 1,245.07 3291 3291-888 Interest on investments (870.91) 870.91 3292 3292-888 Interest on investments (283.38) 283.38 3293 3293-888 Interest on investments (76,249.08) 76,249.08 3294 3294-888 Interest on investments (119,230.98) 119,230.98 3340 3340-888 Interest on investments (43.03) 43.03 3342 3342-888 Interest on investments (2,816.66) 2,816.66 3365 3365-888 Interest on investments (254.63) 254.63 3366 3366-888 Interest on investments (1,029.07) 1,029.07 3367 3367-888 Interest on investments (50,713.61) 50,713.61 3368 3368-888 Interest on investments (17,406.86) 17,406.86 3369 3369-888 Interest on investments (76,278.24) 76,278.24 3430 3430-888 Interest on investments (680.56) 680.56 3480 3480-888 Interest on investments (43.49) 43.49 3494 3494-888 Interest on investments (6,483.27) 6,483.27 3495 3495-888 Interest on investments (55,699.64) 55,699.64 3496 3496-888 Interest on investments (17,171.82) 17,171.82 3497 3497-888 Interest on investments (278,093.39) 278,093.39 3498 3498-888 Interest on investments (61,666.57) 61,666.57 3530 3530-888 CDBG Special assessments (70,236.63) 70,236.63 3530 3530-888 Interest on assessments (294,733.00) 294,733.00 3530 3530-888 Interest earned-other than inv (22.25) 22.25 3530 3530-888 Interest on assessments (57,233.27) 57,233.27 3530 3530-888 Interest on investments (42,999.53) 42,999.53 3541 3541-888 Interest on investments (42,079.08) 42,079.08 3542 3542-888 Interest on investments (5,753.72) 5,753.72 3543 3543-888 Interest on investments (72,158.30) 72,158.30 3545 3545-888 Interest on investments (2,749.54) 2,749.54 3546 3546-888 Interest on investments (55,615.43) 55,615.43 3548 3548-888 Interest on investments (191,998.94) 191,998.94 Fund ACCT-UNIT ACCOUNT DESC Amount Positive Value 3549 3549-888 Interest on investments (136,236.25) 136,236.25 3550 3550-888 Interest on investments (9,655.72) 9,655.72 3551 3551-888 Interest on investments (1,134,161.93) 1,134,161.93 3552 3552-888 Interest on investments (346,378.50) 346,378.50 3553 3553-888 Interest on investments (252,677.60) 252,677.60 3554 3554-888 Interest on investments (338,999.71) 338,999.71 3555 3555-888 Interest on investments (25,852.58) 25,852.58 3600 3600-888 Interest on investments (22.00) 22.00 3701 3701-888 Interest on investments (20,943.09) 20,943.09 3702 3702-888 Interest on investments (66,477.15) 66,477.15 4080 4080-888 Contrib. from Federal Govt (532,777.22) 532,777.22 4080 4080-888 Interest on investments (60,790.82) 60,790.82 4089 4089-888 Interest on investments (5,295.70) 5,295.70 4091 4091-888 Interest on investments (7,350.90) 7,350.90 4092 4092-888 Interest on investments (6,342.78) 6,342.78 4093 4093-888 Interest on investments (23,413.21) 23,413.21 4094 4094-888 Interest on investments (6,980.45) 6,980.45 4095 4095-888 Interest on investments (458,423.80) 458,423.80 4096 4096-888 Interest on investments (83,102.53) 83,102.53 4097 4097-888 Interest on investments (19,227.28) 19,227.28 4248 4248-888 Interest on investments (21,634.61) 21,634.61 4249 4249-888 Interest on investments (114,682.07) 114,682.07 4251 4251-888 Interest on investments (3,712.00) 3,712.00 4252 4252-888 Interest on investments (261,399.60) 261,399.60 4253 4253-888 Interest on investments (11,704.46) 11,704.46 4254 4254-888 Interest on investments (302,363.59) 302,363.59 4255 4255-888 Interest on investments (45,905.19) 45,905.19 4256 4256-888 Interest on investments 123.89 123.89 4479 4479-888 Interest on investments (5,991.43) 5,991.43 4480 4480-888 Interest on investments (54,531.98) 54,531.98 4481 4481-888 Interest on investments (39,570.16) 39,570.16 4482 4482-888 Interest on investments (72,503.76) 72,503.76 4510 4510-888 FEMA (513,796.51) 513,796.51 4510 4510-888 Interest on investments (460,223.04) 460,223.04 4530 4530-888 Interest on investments (124,430.14) 124,430.14 4531 4531-888 Interest on investments (156,963.58) 156,963.58 4540 4540-888 Interest on investments (185,196.56) 185,196.56 4551 4551-888 Interest on investments (3,427.83) 3,427.83 4557 4557-888 Interest on investments (3,883.06) 3,883.06 4558 4558-888 Interest on investments (3,281.68) 3,281.68 4559 4559-888 Interest on investments (41,260.23) 41,260.23 4560 4560-888 Interest on investments (16,617.75) 16,617.75 4561 4561-888 Interest on investments (19,018.84) 19,018.84 4621 4621-888 Interest on investments (72,997.82) 72,997.82 4631 4631-888 Interest on investments (702.80) 702.80 4632 4632-888 Interest on investments (32,513.90) 32,513.90 DATE: November 8, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, Director of Development Services AlRaymond@cctexas.com (361) 826-3575 CAPTION: Ordinance amending Corpus Christi Code of Ordinances to add Section 49-15 authorizing execution of easement encroachment licenses as an administrative remedy. SUMMARY: The purpose of this ordinance is to add Sec 49-15, to allow Development Services to administratively process encroachments on easements. The current process outlined under Sec 49-13 of the City Code of Ordinances is an inefficient and cumbersome process that administratively burdens City staff’s time and extends the developers timeline for permit approvals. By adding an easement encroachment license amendment to the city code, encroachments could be handled as an administrative procedure more adaptive to the applicant’s time sensitive needs. BACKGROUND AND FINDINGS: The Corpus Christi City Code of Ordinances Article I. Sec 49-13 states that prior to closing an easement or portion thereof, the City would present the request to City Council for their approval regardless of the amount of the encroachment. This process is very time consuming. In many of the prior cases dealing with minor encroachments, the encroachment has been less than 1/3 the total width of an existing easement. Minor encroachments are also being identified after a structure has inadvertently encroached on the easement and during the final inspections or land surveys that are performed for the sale of a property. There have been six partial easement closure requests in the last twelve months. Easement encroachments occur due to no requirement to provide a form survey for City approval prior to the placement of a structure, City staff and Contractor error on site plan review, and inaccuracies in field measurement of string lines and improperly placed property pins. The Easement Encroachment License Amendment AGENDA MEMORANDUM First Reading Ordinance for January 21, 2019 Second Reading Ordinance for January 28, 2019 Department’s internal plan review processes were recently modified to eliminate staff errors, but the absence of form surveys and inaccuracies in string line and property pins remain a challenge. Staff initiated discussions with building stakeholder groups regarding a requirement for form surveys, but no agreement has been reached. The City’s Municipal Code of Ordinances authorizes financial penalties for violations of the City’s Technical Construction Codes, to include easement encroachments. Staff does not believe this remedy will lead to a meaningful reduction in the number of encroachments and financial penalties will not resolve the underlying encroachment issue. Development Services Department has a review process in place to ensure that any existing utilities located in the encroached upon area are not affected. All utility companies will still be notified of the encroachment to prevent conflicts. If there is a conflict with utilities the applicant must use the easement closure process outlined in Sec 49-13 of the City Code. The proposed application fee for the easement encroachment license is $530.00. This application fee rate is the amount required under Sec 49-13 of the city code for easement closures. City Code sec 49-13 requires all easement closures to go to council for approval. This new section of the city code will allow encroachments to be granted by administrative action by Development Services provided there are no objections from franchise or public utilities. ALTERNATIVES: Denial of the proposed amendment and continue the current practice of presenting all easement encroachments to City Council for approval. If the proposed amendment is denied, the action would negatively affect efforts to improve customer service by Development Services Department and the timely processing of these types of requests from the community. FISCAL IMPACT: There are no new fees or other financial impacts associated with this item. The fees associated with this item are covered in section 49-13 of the City Code of Ordinances and will consist of a $530 application fee for easement encroachment licenses upon approval of this ordinance. RECOMMENDATION: Staff recommends approval of the amendment to the Corpus Christi Code of Ordinance to add Section 49-15 authorizing execution of easement encroachment licenses. By authorizing an easement encroachment license amendment to the City Code of Ordinances and allowing encroachments to be handled as an administrative procedure, the process will become more adaptive to the applicant’s time sensitive needs and less burdensome on City Staff. LIST OF SUPPORTING DOCUMENTS: Ordinance Sample agreement PowerPoint Presentation Ordinance amending Corpus Christi Code of Ordinances to add Section 49-15 authorizing execution of easement encroachment licenses as an administrative remedy WHEREAS, under current regulations, the remedy for property owners whom accidently encroach on City easements is to remove the encroachment or request the City to abandon the easement, or portion thereof; WHEREAS, easement encroachment license provides an alternative administrative remedy which can be a more equitable and efficient resolution of encroachment on City easements; and WHEREAS, an easement encroachment license that is terminable at any time by the City does not constitute an alienation or lease of City property pursuant to Corpus Christi City Charter Article IX. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Corpus Christi Code of Ordinances, Chapter 49 is amended by adding the following language as delineated below: Sec. 49-15. – Easement Encroachment License. (a) Any person that has erected, constructed or maintains an encroachment structure on a City easement may obtain an easement encroachment license therefor. An easement encroachment license may be obtained by filing a written application with the department of development services. The application shall state the name and address of the owner of the adjacent real property benefited by the encroachment and shall be accompanied by a legal description of the adjacent real property benefited by the encroachment, a one-sheet plot plan illustrating the encroaching structure and a written justification as to the need for the encroachment. (b) Each applicant for an encroachment license shall, at the time of filing the application, pay a nonrefundable application fee of $530. (c) Easement Encroachment License may be granted by the City Manager or designee where with the following criteria apply: (1) the encroachment will not be detrimental to the health, safety or welfare of the community or the surrounding property; (2) the encroachment will not interfere with access to any public place; (3) the encroachment does not require the relocation of public or franchise utilities and said utilities have no objections to the encroachment; (4) all erected structures or improvements are in compliance with Unified Development Code and building code standards; and (5) the encroachment is less than 1/3 of the total width of the easement. (d) If the City Manager or designee finds that the encroachment meets the criteria in subsection c, they shall approve the application. If the proposed encroachment does not meet each of the criteria set out in subsection c, the City Manager or designee shall deny the license, giving their reasons in writing. (e) Requests for an Easement Encroachment License that do not meet the criteria of subsection c may be granted by City Council. (f) If at any time it is determined by the City Manager or designee that the encroachment structure has become detrimental to the health, safety or welfare of the community or the surrounding property, interferes with access to any public place, or if a public works project or development requires removal of the encroachment, the encroachment license granted hereunder shall be revoked by the City Manager or designee upon providing the licensee thirty days’ notice thereof. (g) Encroachment licenses shall run with the Property and be recorded in the real property records of Nueces County, Texas. (h) No encroachment licensed under this ordinance is intended to grant any permanent right or title to all or any portion of an easement, or other City property and does not constitute alienation of the City’s property right. SECTION 2. If for any reason any section, paragraph, subdivision, sentence, clause, phrase, word, or provision of this Ordinance shall be held to be invalid or unconstitutional by final judgment of a court of competent jurisdiction, such judgment shall not affect any other section, paragraph, subdivision, sentence, clause, phrase, word, or provision of this Ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, sentence, clause, phrase, word, or provision of this Ordinance be given full force and effect for its purpose. The City Council hereby declares that it would have passed this Ordinance, and each section, paragraph, subdivision, sentence, clause, phrase, word, or provision thereof, irrespective of the fact that any one or more sections, paragraphs, subdivisions, sentences, clauses, phrases, words, or provisions be declared invalid or unconstitutional. SECTION 3. Publication shall be made in the City's official publication as required by the City's Charter. SECTION 4. This ordinance is effective immediately upon final passage. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 _________________, 2020. ATTEST: ___________________ _____ ________________ Rebecca Huerta Joe McComb City Secretary Mayor Page 1 of 8 ENCROACHMENT LICENSE AGREEMENT This Encroachment License Agreement (“Agreement”) is entered into this day of______________, 20 , by and between City of Corpus Christi (“Licensor”) and_______________________(“Licensee”) and, together with Licensor, the “Parties”). WHEREAS, Licensor is the owner of a [water/sewer/utility/drainage] easement as described on Exhibit A attached hereto (collectively, the “Easement”); and WHEREAS, Licensee is the fee owner of real property encumbered by the Easement (the “Property”) which Property is more particularly depicted on Exhibit B attached hereto; and WHEREAS, Licensee proposes to encroach upon Licensor’s Easement for the benefit of Licensee’s Property by locating certain improvements thereon, the area, nature and purpose of the encroachment (“Encroachment”) being more fully described on Exhibit C attached hereto (the area of the Encroachment being referred to as the “Encroachment Area”); and WHEREAS, Licensor generally prohibits encroachments into Licensor’s easements, but recognizes extenuating circumstances occasionally make such an encroachment appropriate; and WHEREAS, Licensor has, in this case, determined to consent to the Encroachment upon the terms and conditions contained herein. NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, the Parties agree as follows: 1.Consent to Encroachment. Licensor hereby consents to the Encroachment as fully described on Exhibit C. Any and all rights granted to Licensee under this Agreement shall be exercised at Licensee’s sole cost, risk and expense, and shall be subject to the dominant and continuing right of Licensor to use any and all of the Encroachment Area for Licensor’s purposes; and shall further be subject to all prior deeds, easements, dedications, conditions, franchises, covenants, restrictions, encroachments and claims of title of record that may affect the Encroachment Area. Nothing contained in this Agreement shall be deemed to grant, convey, create or vest in Licensee any real property interest in the land; including, but not limited to, any fee, leasehold interest, easement, servitude or irrevocable license. 2.Use of Encroachment Area. Licensee agrees that it will utilize the Encroachment Area solely for the Encroachment purposes described on Exhibit C, and for no other purpose. Page 2 of 8 3.No Interference. All costs associated with modification, removal or damage to Licensee’s Encroachment by the Licensor related to Licensor’s use of the Easement (and all incremental costs initially incurred by Licensor in attempting to avoid the modification, removal or damage to Licensee’s Encroachment) shall be solely the responsibility of Licensee. Licensee, in the performance and exercise of its rights under this Agreement, shall not damage or interfere in any way with the use, operation, maintenance, repair, or replacement of any facility that is owned, operated and maintained by Licensor or its assignees within the Easement. Should Licensee’s Encroachment cause Licensor’s use of the Easement and related facilities to be more costly, or to be interfered with or damaged, Licensee shall, within thirty (30) days of billing, pay all costs and expenses associated with Licensor’s more costly use or with Licensor’s repair of any damage to Licensor’s facilities or removal of any interference. Under any and all circumstances, all work that is necessary to repair any damage to or remove any interference with the Licensor’s facilities shall be at Licensee’s sole cost and expense. Licensor, in emergency situations, may, at Licensee’s sole cost and expense, repair any and all damage to and remove any and all interference with the Licensor’s facilities without prior notice to Licensee. In using its Easement, Licensor agrees to make a reasonable effort to avoid damage to Licensee’s Encroachment, but Licensor shall not be liable for any damage to the Encroachment. In the event Licensor incurs additional costs as a result of any efforts to avoid damage to Licensee’s Encroachment, Licensee shall within thirty (30) days of billing, pay all costs and expenses associated with such efforts. 4.Compliance with Laws. Licensee shall comply with all federal, state and local laws in the exercise and performance of its rights and obligations under this Encroachment Agreement. 5.Encroachment Ordinance or Policy. This Encroachment Agreement is subject to the reasonable terms and conditions of any encroachment ordinance or policy as it may now exist or may subsequently be amended by the Licensor at its sole discretion and without notice. 6.Indemnification. Licensee hereby agrees to indemnify, defend, protect and hold harmless Licensor, its officers and employees, from and against any and all claims, damages, losses, liabilities, fines, penalties, of whatsoever kind or nature, including, but not limited to reasonable attorneys’ fees that are incurred by Licensor and that arise in connection with Licensee’s activities that are undertaken, authorized or obligated pursuant to this Agreement. Such liability shall specifically, without limitation, extend to claims of third parties arising from the presence of the Licensee’s Encroachment Page 3 of 8 7.Limitation on Licensor’s Liability. Licensor shall have no liability to Licensee or third persons related to Licensee’s Encroachment, including, but not limited to, damages to the Licensee’s improvements resulting from Licensor’s dominant use of the Encroachment Area or from the repair of Licensor facilities or the installation of any additional facilities in the future within the Easement. 8. Termination. Licensor may terminate this Agreement at any time upon providing the licensee thirty days’ notice thereof. Notice of termination will be recorded in the real property records of Nueces County, Texas. 9.Covenant Running with the Land. This Agreement shall run with the Property and be recorded in the real property records of (Name of) County, Texas. The Owner and the City acknowledge and agree that this Agreement is binding upon the City and the Owner and their respective successors, executors, heirs, and assigns, as applicable, for the term of this Agreement and constitutes a covenant running with the land. 10.Integrated Agreement. This Agreement contains the entire understanding between the Parties hereto with respect to the subject matter hereof. There are no representations, agreements or understandings (whether oral or written) between or among the Parties relating to the subject matter of this Agreement which are not fully expressed herein. IN WITNESS WHEREOF, and in order to bind themselves legally to the terms and conditions of this Agreement, duly authorized representatives of the Parties have executed this Agreement as of the date first set forth above. Entered into this day of _ , 2020. Licensor: City of Corpus Christi ATTEST: By: By: __________________ __________________ City Secretary City Manager or designee Page 4 of 8 STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on this ____ day of _____________________, 2020, by __________________, City Secretary, of the City of Corpus Christi, a Texas home-rule municipal corporation, on behalf of said corporation. Notary Public, State of Texas STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on this ____ day of _____________________, 2020, by __________________, City Manager, of the City of Corpus Christi, a Texas home-rule municipal corporation, on behalf of said corporation. Notary Public, State of Texas APPROVED AS TO FORM: date Assistant City Attorney for the City Attorney Licensee: ____________________________________ Signature ___________________ Page 5 of 8 Print name STATE OF TEXAS § COUNTY OF ________________ § day of This instrument was acknowledged before me on the ___________, 2020, by___________________, Licensee. ____________________________________ Notary Public, State of Texas Page 6 of 8 EXHIBIT A (Description of Easement) Page 7 of 8 EXHIBIT B (Description of Property) Page 8 of 8 EXHIBIT C (Description of Encroachment) City Council Presentation January 21, 2020 Addition of Article I, Sec 49-15 to Code of Ordinances Easement Encroachment License Sec. 49-15. – Easement Encroachment License. Purpose: - Provide an administrative alternative to easement closures - Reduce processing time by providing staff a mechanism to resolve these types of issues if they meet the criteria established with the addition of this section - Criteria: (1) the encroachment will not be detrimental to the health, safety or welfare of the community or surrounding property; (2) the encroachment will not interfere with access to any public place; (3) the encroachment does not require the relocation of public or franchise utilities and utilities have no objections; (4) all erected structures or improvements comply with the UDC and building code standards; and (5) the encroachment is less than 1/3 of the total width of the easement. Easement License Agreement Terms Sec. 49-15. – Easement Encroachment License. - Requires an encroachment license agreement - Use encroachment area only for a stated purpose - City has no liability related to the encroachment - Agreement runs with the property and recorded in real property records - City has the right to terminate with 30 days’ notice - Licensee shall not damage the easement area and will be responsible for any costs to any facilities within the easement Staff Recommendation Approval AGENDA MEMORANDUM First Reading for the City Council Meeting of January 21, 2020 Second Reading for the City Council Meeting of January 28, 2020 DATE: December 16, 2019 TO: Peter Zanoni, City Manager 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 awarding a construction contract to R.S. Parker Construction, LLC for reconstruction of Newport Pass Road and Zahn Road with new concrete pavement in the amount of $1,337,185.02, located in Council District 4, effective upon issuance of notice to proceed, funding is available from Street Bond 2014, Proposition 2 and Water Utility Capital Program funds; and the FY 2020 Capital Budget is amended to add this project. SUMMARY: This motion approves a construction contract with R.S. Parker Construction, LLC in the amount of $1,337,185.02 for reconstruction of Newport Pass Road from SH-361 to the beach and Zahn Road from the brick pavers to the beach with a water line extension included on Zahn Road. BACKGROUND AND FINDINGS: Newport Pass Road and Zahn Road are existing 2-lane beach access roads with roadside ditches located northeast of Park Road 22 along State Highway 361. In addition to normal Construction Contract Award North Padre Island Beach Access Roads – Newport Pass Road and Zahn Road (Bond 2018 Proposition 1 & 2) roadway distresses, beach access roads experience erosion damage from high tides f or the sections nearest to the beach. Newport Pass Road also received damage from Hurricane Harvey that required temporary improvements to restore safe travel, for which reimbursement has been requested from FEMA. Improvements to both beach access roads are proposed under the Bond 2014 Proposition 2 Beach Access Road Project under Bond language description as follows: “This project includes reconstruction of Beach Access Roads on North Padre Island, including Beach Access Road 3A, and consideration wi ll be given to other beach access roads for which the City has the responsibility of maintaining as funding allows.” Improvement to both Beach Access Road 3a and 2 projects are complete. Based on the current bids, sufficient funds are available to complete the scope of work for Newport Pass and Zahn Roads, both of which fall under the Bond 2014 project description. Listed below are the proposed improvements to the Beach Access Roads:  Newport Pass Road – Restoration and full depth repairs for the entire length from State Highway 361 to the beach  Zahn Road – Full reconstruction of the last approximate 800 LF of roadway nearest to the beach. The remaining section (approximately 2500 LF) will be programmed into the City’s Street Preventative Maintenance Program (SPMP) for future surface treatment. Construction will be planned to avoid spring break and peak summer periods. PROJECT TIMELINE: O N D J F M A M J J A S O N D J F M A M J J A S '18 20202019 Design ConstructionBid/Award Project schedule reflects City Council award in January 2020 with anticipated completion in September 2020. COMPETITIVE SOLICITATION PROCESS On November 8, 2019 the City received six bids. The project was bid for Base Bid (Zahn Road), Additive Alternative 1 (Newport Pass Road) and Additive Alternate 2 (stamped/stained concrete in existing paver area). Bidders were informed that bid comparisons would be based on Base Bid plus Additive Alternate 1 . The City analyzed the bids in accordance with the contract documents and determined R.S. Parker Construction is the lowest responsive and responsible bidder. A summary of the bids is provided below. BID SUMMARY CONTRACTOR BASE BID (ZAHN ROAD) ADD ALT #1 (NEWPORT PASS) ADD ALT #2 (stamped/stained concrete) R.S. Parker Construction $545,295.00 $791,890.02 $152,145.00 JE Construction Services $593,663.00 $746,394.70 $82,939.00 Bay Ltd. $644,530.00 $924,445.00 $28,810.00 Mako Contracting $792,677.85 $1,080,484.40 $223,727.50 Diamond X Contracting $777,502.50 $1,145,146.00 $271,100.00 Clark Pipeline Services $1,126,560.75 $1,319,533.41 $52,644.20 Engineer’s opinion of probable construction cost $542,833.75 $736,607.00 $42,250.00 ALTERNATIVES: The alternative is not to award the construction contract to the low-bidder, R.S. Parker Construction, LLC. Another alternative is to cancel the project. Either alternative would delay the project and conflict with City Council’s goal to expedite street projects. FISCAL IMPACT: The item proposes to award a construction contract to R.S. Parker Construction in the amount of $1,337,185.02 for the construction phase of the North Padre Island Beach Access Roads – Newport Pass Road and Zahn Road project. Project funds are available in Street Bond 2014, Proposition 2 and Water Utility Capital Improvement Program funds. The project is located in City Council District 4 and the contract is effective upon issuance of notice to proceed. The attached Ordinance will amend the FY 2020 Capital Improvement Program budget to add this project. Funding Detail: Fund: Street Bond 2015 General Obligation Bond 14 (Fund 3551) Mission Elem: Street Pavement Maintenance (ME 051) Project No.: North Padre Island Beach Access Newport Pass Road (Proj H17013) Account: Construction (Account #550910) Activity: H17013-01-3551-EXP Amount: $1,322,536.15 Fund: Water 2012A Revenue Bond (Fund 4089) Mission Elem: Distribute Water (ME 041) Project No.: North Padre Island Beach Access Newport Pass Road (Proj H17013) Account: Construction (Account #550910) Activity: H17013-01-4089-EXP Amount: $14,648.87 RECOMMENDATION: Staff recommends awarding the construction contract for the reconstruction of North Padre Island Beach Access Roads – Newport Pass Road and Zahn Road to R.S. Parker Construction in the amount of $1,337,185.02. The construction duration is planned for 25 months from issuance of the Notice to Proceed to begin construction in January 2020 to February 2022. LIST OF SUPPORTING DOCUMENTS: Ordinance Location Map Bid Tab Ordinance awarding a construction contract to R.S. Parker Construction, LLC for reconstruction of Newport Pass Road and Zahn Road with new concrete pavement in the amount of $1,337,185.02, located in Council District 4, effective upon issuance of notice to proceed, funding is available from Street Bond 2014, Proposition 2 and Water Utility Capital Program Funds; and the FY 2020 Capital Budget is amended to add this project. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The FY 2020 Capital Budget adopted by Ordinance No. 031870 is amended to add Project H17013 North Padre Island Beach Access Road – Newport Pass and Zahn Road (Bond 2014). SECTION 2. The City Manager or designee is authorized to award a construction contract for reconstruction of Newport Pass Road and Zahn Road with new concrete pavement in the amount of $1,337,185.02. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 20. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES N North Padre Island Beach Access Roads Newport Pass and Zahn Road (Bond 2014, Proposition 2) Project Number: H17013LOCATION MAP NOT TO SCALE PROJECT LOCATION NEWPORT PASS RD PROJECT LOCATION ZAHN RD N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES North Padre Island Beach Access Roads Newport Pass and Zahn Road (Bond 2014, Proposition 2) VICINITY MAP NOT TO SCALE Project Number: H17013361Packer y C h a n n e l Za h n R d Ne w p o r t P a s s R d Ac c e s s R d N o 3 Park Rd 22Gulf of Mexico Project Location Project Location Project No: 19046A 1 SW Legistar No.: 19-1375 Rev. 2 – 12-18-2019 AGENDA MEMORANDUM First Reading Item for the City Council Meeting of January 21, 2019 Second Reading Item for the City Council Meeting of January 28, 2019 DATE: December 18, 2019 TO: Peter Zanoni, City Manager FROM: Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Jermel Stevenson, Director of Parks and Recreation jermels@cctexas.com (361) 826-3042 Kim Baker, Director of Contracts and Procurement kimb2@cctexas.com (361) 826-3169 CAPTION: Ordinance awarding a contract to HDR Engineering, Inc., for design, bid, and construction phase services for Packery Channel Dredging and Beach Nourishment in the amount of $ 392,736, located in Council District 4, effective upon issuance of notice to proceed, with funding available from Tax Increment Reinvestment Zone (TIRZ) No. 2 and State Hotel Occupancy Tax Reserve Funds upon approval of this ordinance to amend the budget. SUMMARY: This contract provides for the design, bid, and construction phase services for dredging of Packery Channel and nourishment of the adjacent Gulf Beaches. BACKGROUND AND FINDINGS: Packery Channel and adjacent Gulf Beaches are popular recreational destinations for our citizens and tourists visiting Corpus Christi. The channel and beaches are monitored through the City’s Packery Channel Monitoring Program (PCMP) (contract with the Conrad Blucher Institute for Surveying and Science at Texas A&M University-Corpus Christi), which provides an assessment of channel shoaling and beach erosion. PCMP documents indicate when criteria are met for channel maintenance dredging and cyclic beach nourishment in order to maintain channel navigability and public recreational beach access. Based on the latest analysis (July 2019 survey), navigation was unrestricted along the channel centerline from HW Y 361 to the channel mouth. However, areas of shoaling are encroaching on the centerline pathway. Shoals are continuing to increase in size and volume resulting in depth-limited channel segments, narrowing the width of the navigable channel. The continued increase in shoal Professional Services Contract Award Packery Channel Dredging and Beach Nourishment Project No: 19046A 2 SW Legistar No.: 19-1375 Rev. 2 – 12-18-2019 elevation resulted in the placement of submerged hazard buoys during 2019. The volume of sand in the channel is nearing the volume documented prior to the 2012 maintenance dredge of Packery Channel. For Gulf Beaches near Packery Channel, a minimum width of 150 feet must be maintained to allow vehicles on the beach (City Ordinance 028494). When the width is at or less than 150 feet, bollards are placed on the beach to prevent vehicles from accessing narrow areas, as a safety measure for people enjoying beach recreational activities. Based on the persistence of shoals and trends in the increase in sand volume in the channel, the channel should be dredged within the next year to prevent navigation limitations and to provide a source of sand to nourish and restore the beach width (200 ft) along the narrow beach fronting the North Padre Island Seawall. Based on trends in beach erosion and channel shoaling, there is insufficient sand available in the channel to meet the nourishment needs of the beach in the project area. Additional sources of sand will likely be required to restore the beach to the design width along the original project reach from Viento del Mar to Access Road 3A. This contract provides design, bid, and construction phase services for dredging of Packery Channel and nourishment of adjacent Gulf Beaches. It will also provide permitting support to amend the existing Beach Maintenance Permit to allow additional methodologies and/or sand sources for nourishment of the beaches. The scope of services is summarized below:  Review dredge material analysis results to determine if material is suitable for placement as beach nourishment.  Determine the channel locations in need of maintenance dredging, and the associated volumes  Perform regulatory review of U.S. Army Corps of Engineers (USACE) permit requirements, Texas General Land Office rules and policy, and Texas Commission of Environmental Quality (TCEQ) dredging and water quality requirements  Apply for an amendment to the City’s Beach Maintenance Permit through the USACE  If warranted, apply for an Extension of Time for the City’s Beach Maintenance Permit  Prepare detailed construction documents  Bid and construction phase technical support  Prepare and submit final As-Built drawings to the City PROJECT TIMELINE: J F M A M J J A S O N D J F M A M J J A 2020 2021 ConstructionDesignBid/Award This contract will result in design work beginning in January 2020. Construction is anticipated to start in February 2021, with completion estimated for August 2021. COMPETITIVE SOLICITATION PROCESS: HDR Engineering, Inc., was selected for design of Packery Channel Dredging and Beach Nourishment project in April 2018 under RFQ 2018-01. This project was one of three selections that Project No: 19046A 3 SW Legistar No.: 19-1375 Rev. 2 – 12-18-2019 were announced under the Packery Channel Category of the RFQ. Five firms submitted under the Packery Channel Category and two firms were selected. HDR Engineering, Inc., was one of the highest ranked firms in the Packery Channel Category and the Packery Channel Dredging project was their first highest stated preference. The selection committee, with representatives from Engineering Services, ranked HDR Engineering, Inc., qualifications based on five factors: 1) experience of the firm, 2) experience of the key personnel with specific experience in coastal engineering and dredging engineering, 3) project approach and management plan, 4) capacity to meet the project requirements and timelines, and 5) past performance. ALTERNATIVES: Not awarding the contract will delay the dredging of Packery Channel and nourishment of the adjacent Gulf Beaches, which could result in navigation limitations in the channel and further expansion of the beach areas where motor vehicle access is prohibited. FISCAL IMPACT: This project includes design, bid, and construction phase services for Packery Channel Dredging and Beach Nourishment project with HDR Engineering, Inc. in the amount of $ 392,736, located in City Council District 4, with funding available from Tax Increment Reinvestment Zone (TIRZ) No. 2. This project is part of the FY 19 – 20 TIRZ #2 Project and Financing Plan budget, has been recommended by the Island Strategic Action Committee, the North Padre Island Development Corporation, and the TIRZ #2 Board of Directors. FUNDING DETAIL: Fund: Packery Channel Project Tax Increment Financing #2 Fund (Fund 3278) Mission Elem: Infrastructure (#717) Project No.: Packery Channel Dredging and Beach Nourishment (#20106A) Account: Outside Consultants (550950) Activity: 20106-A-3278-EXP Fund: State Hotel Occupancy Tax Beach Fund (Fund 1032) Mission Elem: Manage and Maintain Park and Rec Facilities (#141) Project No.: Packery Channel Dredging and Beach Nourishment (#20106A) Account: Professional Services (530000) Activity: 20106-A-1032-EXP RECOMMENDATION: Staff recommends award of a contract to HDR Engineering, Inc., in the amount of $392,736 for the design, bid, construction, and permitting phase services for Packery Channel Dredging and Beach Nourishment. The design phase will start in January 2020 with completion planned in September 2020. Construction is planned to start February of 2021 with anticipation completion August 2021. LIST OF SUPPORTING DOCUMENTS: Ordinance Location and Vicinity Maps Contract Ordinance awarding a contract to HDR Engineering, Inc., for design, bid, and construction phase services for Packery Channel Dredging and Beach Nourishment in the amount of $392,736, located in council district 4, effective upon issuance of notice to proceed, with funding available from Tax Increment Reinvestment Zone (TIRZ) No. 2 and State Hotel Occupancy Tax Reserve Funds upon approval of this ordinance to amend the budget. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The FY 2020 Operational Budget adopted by Ordinance No. 031870 is amended to appropriate $92,736 from Fund 1032 State Hotel Occupancy Tax Beach Fund unappropriated reserves. SECTION 2. The FY 2020 Operational Budget adopted by Ordinance No. 031870 is amended to increase expenditures by $92,736. SECTION 3. The City Manager or designee is authorized to award a contract for design, bid, and construction phase services with HDR Engineering, Inc. in the amount of $392,736 for the Packery Channel Dredging and Beach Nourishment Project. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 20 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 __________ 2020, 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 _________________, 2020. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 37 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PACKERY CHANNEL DREDGING AND BEACH NOURISHMENT LOCATION MAP NOT TO SCALE PROJECT NUMBER: # 20106A PROJECT LOCATION LOCATION MAP N.T.S. PROJECT LOCATION WH I T E C A P B L V D . N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PACKERY CHANNEL DREDGING AND BEACH NOURISHMENT VICINITY MAP NOT TO SCALE Project Number: 20106A AC C E S S R D . 3 A . VIENTO DEL MAR NORTH PADRE ISLAND SEAWALL BEACH NOURISHMENT AREA (DREDGE MATERIAL) PLACEMENT AREA PACKERY CHANNEL DREDGING AREA Contract for Professional Services Page 1 of 12 SERVICE AGREEMENT NO. 2651 CONTRACT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 19046A - Packery Channel Dredging The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and HDR Engineering, Inc., 555 N. Carancahua, Suite 1600, Corpus Christi, Nueces County, Texas 78401 (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I SCOPE OF SERVICES ...................................................................2 ARTICLE II QUALITY CONTROL .......................................................................3 ARTICLE III COMPENSATION ............................................................................3 ARTICLE IV TIME AND PERIOD OF SERVICE ..................................................4 ARTICLE V OPINIONS OF COST ......................................................................5 ARTICLE VI INSURANCE REQUIREMENTS ......................................................5 ARTICLE VII INDEMNIFICATION .........................................................................5 ARTICLE VIII TERMINATION OF AGREEMENT ..................................................6 ARTICLE IX RIGHT OF REVIEW AND AUDIT ....................................................7 ARTICLE X OWNER REMEDIES .......................................................................7 ARTICLE XI CONSULTANT REMEDIES .............................................................8 ARTICLE XII CLAIMS AND DISPUTE RESOLUTION ..........................................8 ARTICLE XIII MISCELLANEOUS PROVISIONS ................................................. 10 EXHIBITS Contract for Professional Services Page 2 of 12 ARTICLE I – SCOPE OF SERVICES 1.1 City and Consultant agree that the services provided are properly described in the Scope of Services, which is incorporated herein and attached to this Agreement as Exhibit A. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services that would normally be required by law or common due diligence in accordance with the standard of care defined in Article XIII of this Agreement. The approved Scope of Services defines the services to be performed by Consultant under this Agreement. 1.2 Consultant shall follow City Codes and Standards effective at the time of the execution of the contract. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Scope of Services attached as Exhibit A. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.3 Consultant shall provide labor, equipment and transportation necessary to complete all services agreed to hereunder in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Upon request, Consultant must provide City with a list of all subconsultants that includes the services performed by subconsultant and the % of work performed by subconsultant (in dollars). Changes in Consultant’s proposed team as specified in the SOQ or Scope of Services must be agreed to by the City in writing. 1.4 Consultant shall not begin work on any phase/task authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. If the scope of the Project changes, either Consultant or City may request a review of the changes with an appropriate adjustment in compensation. 1.5 Consultant will provide monthly status updates (project progress or delays) in the format requested by the City with each monthly invoice. 1.6 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in City’s General Conditions for Construction Contracts, excerpt attached as Exhibit D. 1.6.1 The Consultant agrees to serve as the City’s Designer as defined in the General Conditions and will consult and advise the City on matters related to the Consultant’s Scope of Services during the performance of the Consultant’s services. 1.6.2 The Consultant agrees to prepare plans, specification, bid and contract documents and to analyze bids and evaluate the documents submitted by bidders. 1.6.3 The Consultant agrees to assist the City in evaluating the qualifications of the prospective contractors, subcontractors and suppliers. 1.7 For projects that require subsurface utility investigation: 1.7.1 The Consultant agrees to prepare and submit to the City prior to the 60% submittal a signed and sealed report identifying all utilities within the project area at the Quality Level specified in Exhibits A and A-1. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. Contract for Professional Services Page 3 of 12 1.7.2 Utilities that should be identified include but are not limited to utilities owned by the City, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. 1.8 For project with potential utility conflicts: 1.8.1 The Consultant agrees to coordinate the verification and resolution of all potential utility conflicts. 1.8.2 The Consultant agrees to prepare and submit a monthly Utility Coordination Matrix to the City. 1.9 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule and budget as defined in Exhibit A, including completing the work in phases defined therein. ARTICLE II – QUALITY CONTROL 2.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 2.2 The Consultant will perform QCP Reviews at intervals during the Project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the Project scope. Based on the findings of the QCP Review, the Consultant must reconcile the Project Scope and the Opinion of Probable Cost (OPC), as needed. 2.3 Final construction documents that do not meet City standards in effect at the time of the execution of this Agreement may be rejected. If final construction documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE III – COMPENSATION 3.1 The Compensation for all services (Basic and Additional) included in this Agreement and in the Scope of Services for this Agreement shall not exceed $392,736. 3.2 The Consultant’s fee will be on a lump sum or time and materials (T&M) basis as detailed in Exhibit A and will be full and total compensation for all services and for all expenses incurred in performing these services. Consultant shall submit a Rate Schedule with their proposal. City and Consultant agree that the Rate Schedule is considered confidential information that may be excluded from public disclosure under Texas Government Code Chapter 552 as determined by the Texas Attorney General. 3.3 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule and budget as defined in Exhibit A, including completing the work in phases defined therein. 3.4 The Director of Engineering Services may request the Consultant to undertake additional services or tasks provided that no increase in fee is required. Services or tasks requiring an increase of fee will be mutually agreed and evidenced in writing as an amendment to this contract. Consultant shall notify the City within three (3) days of notice if tasks requested requires an additional fee. 3.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit B. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. Contract for Professional Services Page 4 of 12 3.6 Principals may only bill at the agreed hourly rate for Principals (as defined in the Rate Schedule) when acting in that capacity. Principals acting in the capacity of staff must bill at applicable staff rates. 3.7 Consultant certifies that title to all services covered by a Payment Request shall pass to City no later than the time of payment. Consultant further certifies that, upon submittal of a Payment Request, all services for which Payment Requests have been previously issued and payments received from City shall, to the best of Consultant’s knowledge, information and belief, be free and clear of liens, claims, security interests or encumbrances in favor of Consultant or other persons or entities making a claim by reason of having provided labor or services relating to this Agreement. CONSULTANT SHALL INDEMNIFY AND HOLD CITY HARMLESS FROM ANY LIENS, CLAIMS, SECURITY INTERESTS OR ENCUMBRANCES FILED BY ANYONE CLAIMING BY, THROUGH OR UNDER THE ITEMS COVERED BY PAYMENTS MADE BY CITY TO CONSULTANT. 3.8 The final payment due hereunder shall not be paid until all reports, data and documents have been submitted, received, accepted and approved by City. Final billing shall indicate “Final Bill – no additional compensation is due to Consultant.” 3.9 City may withhold compensation to such extent as may be necessary, in City’s opinion, to protect City from damage or loss for which Consultant is responsible, because of: 3.9.1 delays in the performance of Consultant’s work; 3.9.2 failure of Consultant to make payments to subconsultants or vendors for labor, materials or equipment; 3.9.3 damage to City; or 3.9.4 persistent failure by Consultant to carry out the performance of its services in accordance with this Agreement. 3.10 When the above reasons for withholding are removed or remedied by Consultant, compensation of the amount withheld shall be made within 30 days. City shall not be deemed in default by reason of withholding compensation as provided under this Agreement. 3.11 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any phase or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures as required by the terms of this Agreement, any such claim shall be waived. 3.12 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 3.13 All funding obligations of the City under this Agreement are subject to the appropriation of funds in its annual budget. The City may direct the Consultant to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 3.5 above for services provided up to the date of suspension. ARTICLE IV – TIME AND PERIOD OF SERVICE 4.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). 4.2 This service shall be for a period of ____ years beginning on the Effective Date. The Agreement may be renewed for up to _____ one-year renewal options upon mutual agreement of the parties to be evidenced in writing Contract for Professional Services Page 5 of 12 prior to the expiration date of the prior term. Any renewals shall be at the same terms and conditions, plus any approved changes. 4.3 The Consultant agrees to begin work on those authorized Services for this contract upon receipt of the Notice to Proceed from the Contracts and Procurement Department. Work will not begin on any phase or any Additional Services until requested in writing by the Consultant and written authorization is provided by the Director of Engineering Services. 4.4 Time is of the essence for this Agreement. Consultant shall perform and complete its obligations under this Agreement in a prompt and continuous manner so as to not delay the Work for the Project, in accordance with the schedules approved by City. The Consultant and City are aware that many factors may affect the Consultant’s ability to complete the services to be provided under this agreement. The Consultant must notify the City within ten business days of becoming aware of a factor that may affect the Consultant’s ability to complete the services hereunder. 4.5 City shall perform its obligations of review and approval in a prompt and continuous manner so as to not delay the project. 4.6 This Agreement shall remain in force for a period which may reasonably be required for completion of the Project, including any extra work and any required extensions thereto, unless terminated as provided for in this Agreement. For construction design services, “completion of the Project” refers to acceptance by the City of the construction phase of the Project, i.e., Final Completion. ARTICLE V – OPINIONS OF COST 5.1 The Opinion of Probable Cost (OPC) is computed by the Consultant and includes the total cost for construction of the Project. 5.2 The OPC does not include the cost of the land, rights-of-way or other costs which are the responsibility of the City. 5.3 Since Consultant has no control over a construction contractor’s cost of labor, materials or equipment, or over the contractor’s methods of determining prices, or over competitive bidding or market conditions, Consultant’s opinions of probable Project Cost or Construction Cost provided herein are to be made on the basis of Consultant’s experience and qualifications and represent Consultant’s best judgment as a design professional familiar with the construction industry, but Consultant cannot and does not guarantee proposals, bids or the construction cost shall not vary from the OPC prepared by Consultant. ARTICLE VI – INSURANCE REQUIREMENTS 6.1 Consultant must not commence work under this Agreement until all insurance required has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 6.2 Insurance Requirements are shown in EXHIBIT C. ARTICLE VII – INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Contract for Professional Services Page 6 of 12 Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VIII – TERMINATION OF AGREEMENT 8.1 By Consultant: 8.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 8.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 8.2 By City: 8.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 8.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 8.3 Termination Procedure 8.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 8.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Contract for Professional Services Page 7 of 12 8.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. 8.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE IX – RIGHT OF REVIEW AND AUDIT 9.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 9.2 Consultant’s records include any and all information, materials and data of every kind and character generated as a result of and relevant to the Work under this Agreement (Consultant’s Records). Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, and any and all other agreements, sources of information and matters that may, in City’s and Consultant’s reasonable judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 9.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s Records only during Consultant’s regular business hours. Consultant agrees to allow City’s designee access to all of Consultant’s Records, Consultant’s facilities and Consultant’s current employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 9.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE X – OWNER REMEDIES 10.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 10.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 10.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 10.1.3 Losses are incurred because of errors and/or omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been errors and/or omissions in the documents. Contract for Professional Services Page 8 of 12 10.2 When the City incurs non-value added work costs for change orders due to design errors and/or omissions, the City will send the Consultant a letter that includes: (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 10.3 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 10.4 The City may withhold or nullify the whole or part of any payment as detailed in Article III. ARTICLE XI – CONSULTANT REMEDIES 11.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 11.2 The City agrees that the Consultant is not responsible for damages arising from any cause beyond Consultant’s reasonable control. 11.3 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XII – CLAIMS AND DISPUTE RESOLUTION 12.1 Filing of Claims 12.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty- one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 12.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 12.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 12.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Mediation. 12.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement, and City shall continue to make payments in accordance with this Agreement. Contract for Professional Services Page 9 of 12 12.2 Mediation 12.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 12.2.2 Before invoking mediation, the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of mediation. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation process contained herein. 12.2.2.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 12.2.2.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 12.2.2.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 12.2.2.4 The parties shall share the mediator’s fee. Venue for mediation shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 12.3 In calculating the amount of any Claim or any measure of damages for breach of contract, the following standards shall apply both to claims by Consultant and to claims by City: 12.3.1 In no event shall either Party be liable, whether in contract or tort or otherwise, to the other Party for loss of profits, delay damages or for any special incidental or consequential loss or damage of any nature arising at any time or from any cause whatsoever; 12.3.2 Damages are limited to extra costs specifically shown to have been directly caused by a proven wrong for which the other Party is claimed to be responsible. 12.4 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute between the parties to this Agreement. 12.5 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 12.6 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Contract for Professional Services Page 10 of 12 ARTICLE XIII – MISCELLANEOUS PROVISIONS 13.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement contract to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 13.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse by the City, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a licensed professional prior to re-use of modified plans. 13.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent licensed professionals practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 13.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 13.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 13.6 Entire Agreement. This Agreement represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 13.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 13.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form. 13.9 Certificate of Interested Parties. For contracts greater than $50,000, Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. Contract for Professional Services Page 12 of 12 Fund Name Acct Unit Acct No. Activity No. Amount Packery Ch TIF#2 3278-717 550950 19046-A-3278-EXP $312,569.00 State HOT Fund 1032-13836-141 530000 19046-A-1032-EXP $80,167.00 Total $392,736.00 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 September 21, 2018 MCN 10037592 July 1, 2019 (Rev1) September 20, 2019 (Rev 2) September 23, 2019 (Rev 3) Mr. Jeff Edmonds, P.E. Director, Capital Programs City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469-9277 RE: PROPOSAL FOR PROFESSIONAL SERVICES FOR PACKERY CHANNEL DREDGING AND BEACH NOURISHMENT (19046A) Dear Mr. Edmonds: Thank you for inviting HDR to submit this proposal for professional engineering and regulatory services. Based on our recent correspondence, the City is requesting design, permitting, bidding, and construction-phase services for maintenance dredging at Packery Channel. The dredged material is planned to be placed as beach nourishment along the Padre Island seawall and in the vicinity of Whitecap Boulevard. Having a local team of coastal engineers and regulatory specialists on staff, several of whom helped complete the previous Packery Channel dredging and beach nourishment project for the City, we are well qualified to help. A detailed outline of HDR’s proposed services is provided below. SCOPE OF SERVICES HDR’s proposed services for this project consist of the following tasks: Task 1: 30% Preliminary Design HDR will participate in a kickoff meeting with City staff to review project scope, objectives, and timeline. The meeting will be held at the City’s office. Following the kickoff meeting, HDR will perform a site visit to observe general conditions at the planned beach nourishment project area, anticipated staging area(s), and dredging pipeline route. Results of the site visit will be documented in a site visit report with photographs. HDR will then perform preliminary design consisting of the following items: -Review readily-available aerial photography, as well as beach and channel monitoring data provided by the City, to develop a general site characterization for the project. -Review results of sieve and chemical analyses from sediment core samples taken from Packery Channel. The sampling, testing, chemical data interpretation, and associated reporting will be performed by a third-party consultant who is directly under contract with the City. Once these data have been provided to HDR, HDR will assess the sieve analyses and chemical test results to determine if the material EXHIBIT A Page 1 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 2 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 planned to be dredged from the channel is suitable for placement as beach nourishment. If the material is not beach-quality sand, HDR will provide conceptual-level recommendations for placement of the dredged material in other locations (such as for habitat restoration or in an upland placement area). - Review channel bathymetric survey data provided by the City to determine the channel locations in need of maintenance dredging, and the associated volumes. - Identify possible upland borrow sources that could potentially serve as alternative or supplemental (e.g. for maintenance purposes) sources of sand for nourishing the beach along the seawall. Up to three sources will be identified. This task will not include topographic surveys, sediment sampling/testing, environmental assessments, or regulatory coordination. - Review shoreline change data provided by the City to develop beach nourishment location and limits, planform shape, and cross sections. HDR will also coordinate with the City regarding potential funding and design requirements associated with project cost-sharing with the Texas General Land Office. - Develop preliminary dredging pipeline routes and public access crossings to minimize impacts to public use of the beach between Packery Channel and the beach nourishment area. - Perform regulatory review of U.S. Army Corps of Engineers (USACE) permit requirements, Texas General Land Office rules and policy, and Texas Commission of Environmental Quality (TCEQ) dredging and water quality requirements. Results of review will guide design of proposed project. - Develop a preliminary-level opinion of probable project cost for maintenance dredging and beach nourishment. - Results of the items described above will be summarized in a 30% Preliminary Design Memorandum. This memorandum will be submitted in draft format for review by the City. Once HDR has received the City’s review comments, the memorandum will be updated and a final version will be provided to the City. - HDR will meet with the City to review the results and recommendations presented in the 30% Preliminary Design Memorandum, and review the goals, objectives, and schedule for final design. Task 2: USACE Regulatory Coordination (Time and Materials) HDR will perform the following services related to environmental and regulatory permitting for this project: Task 2.1: Dredging and Beach Nourishment Permit Under a previous contract with the City, HDR prepared a U.S. Army Corps of Engineers (USACE) Section 10/404 permit application for this project. The permit EXHIBIT A Page 2 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 3 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 application is still under review by USACE. HDR will provide continued coordination with USACE in an attempt to receive an executed permit for this project. Task 2.2: Beach Maintenance Permit HDR assisted the City with obtaining authorization from USACE in 2008 to conduct beach maintenance activities along 21 miles of beach located on Mustang and North Padre Islands. Beach maintenance was authorized under Department of Army (DA) Individual Permit SWG-2006-00647, which had an expiration of December 31, 2014. As part of formal Section 7 consultation with USFWS, the 2008 permit included the following conservation measures: Attachment A – Provisions for Sea Turtle and Piping Plover Monitoring and Attachment B – Habitat Monitoring Effort. Prior to expiration of the IP, HDR assisted the City with amending the permit to remove the Habitat Monitoring Effort (Attachment B) based on results from five years of monitoring and obtaining an Extension of Time (EOT) for beach maintenance activities to occur until December 31, 2020. Due to the regulatory process and concerns from the natural resources agencies regarding threatened and endangered species within the project area, approval of the previous amendment and the EOT took approximately two years. It is HDR’s understanding that the City would like to request an EOT for the current beach maintenance activities for another five (5) years, clarify the extent of beach maintenance conducted by the City and biological monitoring requirements, and amend the permit to include the redistribution of accumulated sand to eroded areas where the beach width has been reduced, as described below.  Based on discussions with the City, maintenance activities occur within an approximate 8-mile stretch of beach between Marker 254 and Marker 236, Access Road 4 and Newport Access Road, and Marker 103 and Marker 62. The remaining beach areas included in the current permit are maintained by the County.  The City would like to amend the permit to reflect the correct beach maintenance extents. In addition, the City would like to amend Attachment A of the existing permit to include only yearly training courses (Item 1) of the Piping Plover Section and remove Items 2 and 3. Because Attachment B was removed from the existing permit during the previous amendment and EOT dated February 13, 2015, the requirements detailed in Items 2 and 3 are no longer applicable.  The redistribution of sand would occur along an approximate 5-mile stretch of beach between the placement areas referred to as the “Packery Channel Footprint” or “PA-4N” and “PA-4S” in the Environmental Impact Statement for Packery Channel; this area extends from approximately Viento Del Mar to Newport Pass. The proposed work includes repositioning sand that is routinely maintained in areas above the mean tide line to areas that have been eroded. Sand would be removed from areas located between the toe of the dune and the mean tide line and placed below the mean tide line to nourish the beach seaward of the existing dune and seawall. The proposed sand reposition could result in an increased beach width of up to 300 feet. EXHIBIT A Page 3 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 4 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Due to the amount of time available before the existing beach maintenance permit expires, it is HDR’s opinion that USACE would not currently grant an EOT for the existing beach maintenance permit. However, it is HDR’s professional opinion that an amendment of the permit to address the bulleted items listed above could be authorized prior to expiration of the existing permit on December 31, 2020. Therefore, HDR recommends the City submit an amendment request for the current permit without an EOT request. Upon receipt of the amended permit, if USACE did not include an EOT with the amended permit, the City can request an EOT to allow the amended beach maintenance activities through December 31, 2025. If the City has not received authorization of the amendment within 60-days of the current permit expiration (December 31, 2020), a separate EOT request specifically requesting a 5- year extension of the existing permit should be submitted by November 1, 2020. This EOT will allow the City to continue their current beach maintenance activities while the permit amendment request is pending. To develop the permit amendment and EOT requests, HDR proposes to conduct the following services: 2.2.1 Desktop Review: The City will provide HDR with annual monitoring reports that were compiled for sea turtles and piping plovers, and annual summary reports that were submitted to USACE Corpus Christi Regulatory Field Office by February 1 of each year, as required under the special conditions outlined in DA permit SWG-2006-00647. HDR will review these reports as well as other existing information to make a determination on the extent of field investigation that will be required to develop the permit amendments. A summary of the desktop review will be provided to the City in a Desktop Review Memorandum. 2.2.2 Formal Coordination with USACE and USFWS: The previous permit SWG-2006-00647 included development of a Biological Assessment (BA) and a Final Biological and Conference Opinion (BCO) as part of formal Section 7 consultations with the U.S. Fish and Wildlife Service (USFWS). HDR anticipates an updated BA will be required for the permit amendments due to changes in federal regulations, including the listing of red knots (Calidris canutus) as threatened under the Endangered Species Act of 1973, and modification of beach maintenance activities to include the redistribution of sand alongshore. HDR will initiate formal consultation with USACE and USFWS to clarify the proposed beach maintenance activities and amendment of Attachment A to include only Item 1 in the Piping Plover Section. 2.2.3 Field Investigations: Assuming site conditions have remained relatively constant for the entire 21-mile stretch of beach to be maintained by the City, HDR environmental staff will perform a site visit within the Packery Channel Footprint (Viento Del Mar to Newport Pass) area to review current site conditions. The area to be investigated depends on findings from Tasks 2.2.1 and 2.2.2. HDR will also note items that may require regulatory coordination and documentation as part of a BA. HDR will walk the beach from either end of the Packery Channel Footprint area to EXHIBIT A Page 4 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 5 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 survey for jurisdictional areas and potential protected species habitat. A summary of the site visit and associated recommendations for regulatory services will be provided in a Site Visit Memorandum. A site visit for the Packery Channel Footprint area will require two HDR environmental staff and will be completed in one day. State coastal boundary delineation or other surveying of the beach and vegetation line are not included. 2.2.4 Regulatory Assistance for Permit Amendments: HDR will assist the City with obtaining authorization for permit amendments to SWG-2006-00647 to allow alongshore redistribution of sand throughout the Packery Channel Footprint area to areas below the mean tide line, clarify the extent of beach maintenance conducted by the City, and amend Attachment A to remove Items 2 and 3 of the Piping Plover Section. The following subtasks are proposed: Joint Evaluation Meeting HDR will schedule a joint evaluation meeting (JEM) at either the USACE Corpus Christi Regulatory Field Office or The Texas General Land Office Coastal Field Operations/Permit Service Center Office. Two representatives from HDR will attend the JEM. HDR will provide hard copies of the original and amended DA permit SWG-2006-00647, a summary of current site conditions from subtask 2.2.3, and an aerial photograph of the proposed Packery Channel Footprint area to aid in project discussions at the JEM. After the JEM, HDR will provide notes to be distributed to the JEM attendees. Permit Amendment Request Several activities are required to develop the permit amendment request. The following items will be compiled into a single USACE permit amendment request:  Project summary and coordination cover letter to USACE Corpus Christi Regulatory Field Office (CCRFO)  USACE ENG Form 4345  Previous DA permit SWG-2006-00647and EOT (Dated 02/13/2015)  TCEQ Water Quality Certification (Tier II)  CMP Consistency Review Form  Protected Species Evaluation – HDR assumes the previous Biological Assessment would need to be updated  Wetland Delineation Report  Cultural/Historical Resources Evaluation  Mitigation/Evaluation Plan  Alternatives Evaluation EXHIBIT A Page 5 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 6 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Update Beach Maintenance Plan The City’s current beach maintenance activities allow beach roadway sand and seaweed to be placed above the Annual High Tide (A.H.T) line and immediately in front of the dunes between April and November. From November to April, the sand placed above the A.H.T. can be redistributed across the beach, but that redistribution is limited to the area immediately seaward of its location. As a result, sand that may be placed above the A.H.T. during beach roadway maintenance practices within an accreting area of the beach cannot be transported alongshore to another section of the beach that is eroding. The redistribution of sand alongshore to beach areas that are eroding would improve beach conditions and provide more effective coastal protection. As part of the permit amendment, HDR will provide coastal analyses to assist the City in developing a more detailed long-term beach maintenance plan to help maintain beach width. Having an updated beach maintenance plan will also help expedite agency coordination during the permitting process. The plan will contain recommendations for periodic small-scale back passing of accumulated sand to eroded areas within the project footprint, including how, when, and where sand is relocated. Agency Coordination As part of the permit amendment process, the project will be put on a 30- day Public Notice. Our experience is that there may be substantial agency and public comments in response to the Public Notice, which will require responses provided by the applicant to USACE. We anticipate that the existing BA will need to be updated to reflect recent listing of the red knot as a threatened species protected under Section 7 of the Endangered Species Act. HDR will update the BA for Section 7 consultation through USACE. HDR assumes the previously amended permit conditions authorized in a letter dated February 13, 2015 will remain in full force and effect, with the exception of the addition of red knots to Attachment A. HDR will continue to coordinate with the agencies through the Section 7 consultation process and be responsive to requests regarding the existing avoidance and minimization measures in effect by SWG-2006- 00647. Based on our recent permitting experience, HDR assumes that Texas Parks and Wildlife Department (TPWD), the Texas Commission of Environmental Quality, and the Environmental Protection Agency will have substantial comments to the Public Notice. Additional coordination with TPWD, TCEQ, and the EPA is included in our scope estimate. However, HDR assumes that no additional site visits will be requested with agency representatives. The timing and outcome of the permitting process is highly dependent on the availability and responsiveness of USACE and the resource agencies. Based on our experience, USACE may require the proposed activity be authorized under a new Individual Permit instead of authorizing a permit amendment. However, the level of EXHIBIT A Page 6 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 7 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 effort would not change as described in this task if USACE issues a new permit instead of an amendment to the existing one. 2.2.5 Extension of Time: If the newly submitted permit amendment request is not approved within 60 days of the expiration of the existing permit, HDR will assist the City with obtaining an EOT for the existing permit. The EOT will request authorization for the City to conduct the existing beach maintenance activities until 2025 while the permit amendment request is pending. Note that the services described under this sub-task will only be performed if authorized by the City. The following subtasks are proposed: Extension of Time Request The following items will be compiled into a single USACE EOT application:  Project summary and coordination cover letter to USACE CCRFO  USACE ENG Form 4345  Existing permit SWG-2006-00647 dated February 13, 2015 USACE Coordination HDR assumes the USACE can authorize the EOT request for the existing permit as an administrative amendment. HDR assumes the previously amended BA included in subtask 2.2.4 and the existing permit conditions will suffice for Section 7 consultation through USACE for the EOT. HDR assumes that no additional site visits will be requested with agency representatives or from the City. If additional information or coordination is required for authorization of an EOT for the existing permit, HDR will provide additional regulatory services under a separate scope and fee. Task 3 – Final Design Based on the City’s review and feedback on HDR’s 30% Preliminary Design Memorandum prepared under Task 1, HDR will perform detailed engineering analyses and final design for channel maintenance dredging along up to 3.5 miles of Packery Channel from the Gulf Intracoastal Waterway to the Gulf of Mexico. The actual dredging limits will be based on monitoring surveys performed by the City, sand quality, project budget, and other factors. Project design will include beach nourishment as the placement location for beach-quality sand extracted from the channel during the maintenance dredging. The beach nourishment design will be limited to material dredged from Packery channel; material obtained from other sources is not included. The beach nourishment location will be limited to the northern portion of the Padre Island seawall and/or the general vicinity of Whitecap Boulevard. If bathymetric monitoring surveys and sediment sampling/testing performed by the City indicate that portions of the channel containing non-beach-quality material are in need of dredging, an EXHIBIT A Page 7 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 8 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 alternative placement area will be required. In this event, HDR will provide additional design and regulatory services as described under Task 6 (Additional Services). Tasks that will be performed by HDR to advance the project through final design consist of the following:  HDR will prepare Procurement Documents (plans and specifications) for use by the City in soliciting bids from prospective construction contractors. The Procurement Documents will include technical specifications; construction drawings; supporting appendices (including USACE permit(s) and geotechnical data); general and special provisions; a proposal form; and other standard contract forms provided by the City. HDR will prepare 60%, 100% (Pre-Final), and Final (Signed/Sealed) design submittals. For the 60% design submittal, HDR will provide preliminary drawings and a Table of Contents for the proposed technical specifications. For the 100% and Final design submittals, HDR will provide drawings and Proposal Packages for the City for interim and final review. A Project Checklist, Drawings Review Checklist, and Plan Executive Summary will be included with each submittal. The following sheets are estimated for the final plan set: 1) Cover Sheet 23) Placement Area (Beach Nour) 2) General Notes and Legend 24) Typical Sections and Details 3) Overall Existing Site Plan and Key Map 25) Typical Sections and Details 4) Enlarged Existing Site Plan 1 26) Typical Sections and Details 5) Enlarged Existing Site Plan 2 27) Dredging Cross Sections 1 6) Enlarged Existing Site Plan 3 28) Dredging Cross Sections 2 7) Enlarged Existing Site Plan 4 29) Dredging Cross Sections 3 8) Enlarged Existing Site Plan 5 30) Dredging Cross Sections 4 9) Enlarged Existing Site Plan 6 31) Dredging Cross Sections 5 10) Enlarged Existing Site Plan 7 32) Dredging Cross Sections 6 11) Enlarged Existing Site Plan 8 33) Dredging Cross Sections 7 12) Placement Area – Existing Conditions 34) Dredging Cross Sections 8 13) Placement Area – Existing Conditions 35) Dredging Cross Sections 9 14) Dredging Plan 1 36) Dredging Cross Sections 10 15) Dredging Plan 2 37) Dredging Cross Sections 12 16) Dredging Plan 3 38) Dredging Cross Sections 13 17) Dredging Plan 4 39) Dredging Cross Sections 14 18) Dredging Plan 5 40) Dredging Cross Sections 15 19) Dredging Plan 6 41) Dredging Cross Sections 16 20) Dredging Plan 7 42) Dredging Cross Sections 17 21) Dredging Plan 8 43) Dredging Cross Sections 18 22) Placement Area (Beach Nour) 44) Dredging Cross Sections 18  HDR will coordinate with the City during the various review stages and provide clarifications as required. Note that the 100% Procurement Documents submittal will serve as a final review package; it will not be signed and sealed by a professional engineer until after the City’s final review comments have been incorporated.  With each (60%, 100%, and Final) Procurement Documents submittal, HDR will provide an opinion of probable construction cost (OPCC) that reflects the scope of construction. Developing the OPCC will include researching current market conditions for the EXHIBIT A Page 8 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 9 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 anticipated methods and timing of construction, and coordination with the City on project budget.  HDR will participate in the following meetings under Task 2: - 60% Design Submittal Meeting - 100% Design Submittal Meeting Task 4: Bidding-Phase Services This task includes supporting the City during the bidding phase of the project. HDR’s services under this task include the following:  Participate in a pre-bid conference with prospective construction contractors and City staff. HDR will facilitate technical discussion and provide meeting notes to City. HDR will respond to questions asked during the pre-bid conference by preparing necessary changes to the plans and specifications.  Support the City’s solicitation process by assisting with the issuance of addenda and providing answers to technical questions from prospective contractors regarding the bid documents.  Attend bid opening, review bid tabulation, and assist City in evaluating the qualifications of the prospective contractors, subcontractors, and suppliers.  Prepare Letter of Recommendation for qualified low bidder. Task 5: Construction Administration Services (Time and Materials) This task includes construction administration and observation activities to review the status of construction and the construction contractor’s (Contractor’s) general compliance with the Contract Documents and design intent. The services under this task will include the following:  Participate in a Pre-Construction Conference (PCC) with the City, the City’s designated resident project representative (RPR), and selected Contractor.  HDR has assumed general construction administration services will be required for up to 28 weeks (approximately 7 months). This task includes general construction administration including responding to RFI’s, and issuing Engineer’s Supplemental Instruction (ESI) and Work Change Directives (i.e., Engineer’s Clarification-Interpretation) in accordance with the City’s established process, as defined in the Contract Documents.  HDR will review and process Contractor’s submittals as may be required by the Contract Documents, including the Contractor’s initial Schedule of Values and proposed construction schedule. HDR will also prepare a monthly submittal log to help track status of required submittals.  HDR will review and process Contractor’s construction surveys as may be required by the Contract Documents.  HDR’s project manager or project engineer will travel to the project site approximately once per month, plus perform five additional site visits, for a total of 12 site visits during active EXHIBIT A Page 9 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 10 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 construction (the duration of “active construction” is assumed to be 7 months). Seven (7) of these trips (or one per month) will be for combined site visits and routine construction progress meetings with Contractor, RPR, and the City. The remaining five trips will be for stand-alone site visits. During site visits, HDR will observe general status of work and assist RPR with monitoring the general progress of the construction activities. HDR will prepare a site visit report for each site visit and minutes for each of the construction progress meetings.  Upon substantial completion of construction, HDR will visit the site, perform a substantial completion inspection with the RPR and the City, and issue a punch list for any remaining work items. Following the contractor’s completion of the punch list items, HDR will perform a final inspection with the RPR and the City. HDR will issue site visit reports for both inspections and prepare a Certificate of Substantial Completion and a Certificate of Final Completion for signature by HDR, Contractor, and the City.  Upon completion of construction, HDR will obtain and review the “red-line” drawings prepared by Contractor and the City’s RPR. This information will then be applied by HDR to develop record drawings. The record drawings will be provided to the City in AutoCAD and PDF format. HDR will also prepare a Close Out Project Summary which will summarize all Change Orders issued by the City, including cause and cost. Task 6: Additional Services Services described under Task 6 will not be performed unless requested in writing (or via email) by the City. 6.1 Design Investigation for Alternative DMPA (NIC) As described under Task 3, only beach-quality sand will be considered for placement as beach nourishment. In the event that a dredged material placement area (DMPA) is required for non-beach-quality sediment, HDR will provide additional services to assist the City with identification of an alternative placement location. Conceptual-level analysis will be performed to determine DMPA capacity and size requirements; USACE permitting requirements; environmental constraints; constructability considerations; an opinion of probable construction cost; and potential fees for detailed design and regulatory services. Field data collection such as topographic/bathymetric surveys, utility investigations, geotechnical investigations, and formal environmental delineations will not be included. Results of the alternative DMPA investigation will be included in the Preliminary Design technical memorandum under Task 1. This task does not include detailed design or USACE permitting. If the City elects to proceed to detailed design and/or permitting for the alternative DMPA, these additional services would be provided under a separate scope and fee. 6.2 Warranty Phase Services (NIC) If requested by the City, HDR will visit the site towards the end of the Contractor’s one-year warranty period and perform a warranty inspection for the project. HDR will note defects requiring Contractor action to maintain, repair, fix, restore, patch, or replace completed work under the maintenance guarantee terms of the contract. HDR’s observations and recommendations will be documented in a warranty inspection report including the locations and conditions requiring action, and ground photographs of the observed project features. EXHIBIT A Page 10 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 11 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 6.3 Assistance with Meetings and Presentations (Time and Materials) HDR proposes to provide the following services for assistance with up to four meetings: - Participate in up to three pre-meetings at City Hall for preparation with City staff prior to scheduled meetings with other project stakeholders such as the Island Strategic Action Committee, the Watershore and Beach Advisory Committee, the Texas General Land Office, or City Council. - Prepare up to three PowerPoint presentations. - Attend and, if requested by City, provide presentations at up to three meetings to be held in Corpus Christi. ASSUMPTIONS AND LIMITATIONS HDR’s proposal for these services and fee are based on the following assumptions and limitations:  As explained under Task 6, this scope does not include detailed design or USACE permit coordination for placement of non-beach quality material for habitat creation or placement into an upland dredged material placement area.  A TxGLO lease will not be required for the beach nourishment.  Review and/or analysis of potential foundation and structural impacts from previous or ongoing scour at the SH361 bridge is not included.  This scope does not include recommendations, design, or U.S. Coast Guard coordination for replacement or upgrades to aids to navigation or other channel markers.  This scope does not include surveying. Design-quality survey data will be provided to HDR by the City in AutoCAD or ASCII x,y,z format.  This scope does not include a geotechnical investigation, sediment sampling, or sediment chemical analysis. Sediment sampling and chemical analysis will be performed by a third party under direct contract with the City. Results and data interpretation will be provided by City’s third-party consultant.  This scope does not include Texas Department of Licensing and Registration (TDLR) coordination or review.  Except as described under Task 6.3, this scope does not include participation in meetings or presentations to City Council or other entities such as the Federal Emergency Management Agency (FEMA), the Watershore and Beach Advisory EXHIBIT A Page 11 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 12 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Committee, the Texas General Land Office, or the Island Strategic Action Committee (ISAC).  Identification of existing utilities will be based on information provided by the City and previous design drawings prepared by USACE. A subsurface utility investigation is not included as part of this scope.  HDR has not budgeted for development of a formal design calculations summary package. If a design calculations package is desired by the City, this information can be prepared by HDR through a contract amendment.  The OPCC will be developed on the basi s of HDR’s experience and qualifications, and will represent our judgment as experienced and qualified professional engineers generally familiar with this industry. However, because HDR has no control over the costs of labor, materials, equipment, or services furnished by others, or over the contractor’s methods of determining prices, or over competitive bidding and market conditions, HDR cannot and does not guarantee that proposals, bids, or actual project costs will match our OPCC. If the City desires greater assurance on probable construction costs, consideration should be given to retaining an independent cost estimator.  The City will distribute Procurement Documents (construction bid packages) to prospective contractors and coordinate with commercial plan rooms.  City’s construction department will review and process construction contractor’s pay requests (invoices), and issue/process any needed construction change orders, without review or assistance from HDR.  In the event the lowest responsible bidder’s bid exceeds the City’s project budget, HDR will confer with City staff on any desired revisions to the bid documents, and will then negotiate a contract amendment for implementation of these revisions and associated re-bidding.  The timing and outcome of the permitting process is highly dependent on the availability and responsiveness of USACE and resource agencies. Both the City and HDR agree that the permits may ultimately not be issued, and the City agrees to pay HDR for applicable services provided regardless of the permitting outcome.  Task 6.2 (Warranty Phase Services) does not include underwater or forensic inspections. HDR’s inspection will be limited to above-water and above-ground features that can be readily observed during a site walk-through. HDR’s warranty- phase services do not include communications and/or negotiations with the Contractor; engineering design; surveying; permitting; aerial photography; or construction observation of any corrective measures required after the warranty inspection. EXHIBIT A Page 12 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 13 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 FEE, DELIVERABLES, AND SCHEDULE HDR proposes to provide these services for a fee of $392,736 as shown in the table below. Except where noted above, all tasks will be performed on a Lump Sum basis. Tasks 2, 5, and 6.3 (USACE Regulatory Coordination, Construction Administration Services, and Assistance with Presentations and Meetings) will be performed on a Time and Materials basis in accordance with the rates listed in the attached rate schedule. The staff listed in this table will be supported by other HDR staff as needed. HDR will invoice for other staff at direct salary times a multiplier of 3.43, plus direct expenses. Please note that HDR’s rates are subject to revision in January of each year. Any work outside the proposed Scope will be added, with authorization from the City, through a formal Scope Change Document and associated fee agreement. This proposal is valid for 45 days from the date of this letter. EXHIBIT A Page 13 of 15 Mr. Jeff Edmonds MCN 10118494 September 20, 2019 Page 14 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Task Deliverables Approximate Schedule Fee 1. 30% Preliminary Design - Project Kickoff Meeting Notes - Site Visit / Photographs and Notes - 30% Preliminary Design Memorandum (Draft) - 30% Preliminary Design Memorandum (Final) - Draft Memo: 16 weeks from NTP - Final Memo: 3 weeks from receipt of City’s review comments $52,445 (Lump Sum) 2. USACE Regulatory Coordination Electronic copies (PDF) of the following deliverables will be provided under Task 2.2 for the Beach Maintenance Permit: - Draft JEM materials (exhibits) and mtg notes for City review. - Draft permit amendment, BA, and EOT request for City review. - Comment response matrix for agency comments on permit amendment request. - Draft response letters and material to address agency requests. - Draft Beach Maintenance Plan. Two hard copies and an electronic copy (PDF) of the following deliverables will be provided under Task 2.2: - Final Exhibits for JEM. - Permit amendment, BA, and EOT request for USACE submittal. - Final response letters and materials provided in response to agency comments on permit amendment request. - Final Beach Maintenance Plan. - JEM : 60 days from NTP - Draft App: 90 days from NTP - Final App: 120 days from NTP Task 2.1: $8,919 (T&M) Task 2.2: $80,167 (T&M) 3. Final Design Two hard copies and an electronic copy (PDF) will be provided for all of the following deliverables under Task 3: - 60% Submittal: Drawings, specifications table of contents, and OPCC. - 100% (Pre-Final) Submittal: Drawings, specifications, and OPCC at the Pre-Final stage. The drawings and specifications (including City- provided front end documents) will be included. The OPCC will be in the format of the Bid Tabulation. - Final Submittal: One 22”x34” (or 11”x17”) unbound set of hard copy drawings, 8½”x11” unbound set of technical specifications and front- end documents, and bid form of the ISSUED FOR BIDS set, suitable for reproduction. - 60% Submittal: 6 mos from NTP - 100% Submittal: 8 mos from NTP - Final Submittal: 9 mos from NTP (dependent on USACE Permit timeline) $186,325 (Lump Sum) 4. Bidding-Phase Services One digital copy in PDF format of the following: - Meeting notes from pre-bid conference; - Addenda and/or responses to questions required during the bidding phase. - Recommendation for Award. Schedule is dependent on City. Award recommendation letter will be provided within 14 days of HDR’s receipt of bid results. $9,178 (Lump Sum) 5. Construction Administration Services One digital copy in PDF format of the following: - Meeting notes from construction progress meetings; - RFI’s, Work Change Directives, and/or Change Orders required during construction; - Monthly Submittal Log; - Site Visit Reports; - Substantial Completion Certificate and Punch List; - Final Completion Certificate; - Record Drawings (record drawings will also be provided in AutoCAD format). - Close-Out Project Summary Schedule dependent on construction contract. Duration of active construction assumed to be 7 mos. Record drawings will be provided within 30 days of construction contract completion date. $44,932 (T&M) 6. Additional Services 6.1 Design Investigation for Alt DMPA: (NIC) 6.2 Warranty Phase Services: (NIC) 6.3 Assistance with Presentations and Meetings: Meeting handouts in PowerPoint or PDF format. - Task 6.1: (NIC) - Task 6.2: (NIC) - Task 6.3: Within 15 days of City’s request to perform task. 6.1: (NIC) 6.2: (NIC) 6.3: $10,770 (T&M) Total Proposed Fee: $392,736 Notes: 1. Actual schedule for all deliverables is dependent on HDR’s receipt of review comments and other needed feedback from City. HDR has assumed three weeks for City review of deliverables. 2. Tasks designated as “NIC” are not in contract. EXHIBIT A Page 14 of 15 Mr. Jeff Edmonds MCN 10037592 September 23, 2019 Page 15 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Thank you again for considering us for this project. Please do not hesitate to contact Dan Heilman at 361-696-3344 if you have questions or require any additional information. Sincerely, HDR ENGINEERING, INC. Daniel J. Heilman, P.E. Arthur B. Colwell, P.E. Project Manager Managing Principal Vice President Cc: Sarah West, P.E., City of Corpus Christi Attachments: Manhour and Expense Estimate (Dated 9/23/2019) HDR Rate Schedule (Dated 9/23/2019) EXHIBIT A Page 15 of 15 HDR Engineering, Inc. Rate Schedule for Professional Services to the City of Corpus Christi for Packery Channel Dredging and Beach Nourishment (19046A) Project Name & Classification Rate, $/hr Engineer VIII (Project Manager) 264 Engineer VII (QC Lead) 242 Environmental Manager 216 Sr Environmental Scientist 144 Archeologist 174 Engineer III (Coastal Engineer) 122 Environmental Biologist 82 Technician III (CAD) 149 Technician III (GIS) 123 Technician I (Accounting) 88 Technician I (Administrative) 72 EXHIBIT A-1 Page 1 of 1 Basic Services:Original Contract Total Contract 1.Preliminary Design $52,445.00 $52,445.00 2.Design Phase $186,325.00 $186,325.00 3.Bid Phase $9,178.00 $9,178.00 4.Construction Administration Phase (T&M)$44,932.00 $44,932.00 Subtotal Basic Services Fees $292,880.00 $292,880.00 Additional Services: 1.Permit Preparation $0.00 $0.00 2.ROW Acquisition Survey $0.00 $0.00 3.Topographic Survey and Parcel Descriptions $0.00 $0.00 4.Environmental Issues (Time & Materials)$89,086.00 $89,086.00 5.Public Involvement $0.00 $0.00 6.Subsurface Utility Investigation $0.00 $0.00 7.Design Investigation for Alternative DMPA $0.00 $0.00 8.Warranty Phase $0.00 $0.00 9.Assistance with Presentations and Meetings (T&M)$10,770.00 $10,770.00 Subtotal Additional Services $99,856.00 $99,856.00 Summary of Fees Basic Services Fees $292,880.00 $292,880.00 Additional Services Fees $99,856.00 $99,856.00 Total Authorized Fees $392,736.00 $392,736.00 Council Approval Pending PACKERY CHANNEL DREDGING AND BEACH NOURISHMENT PROJECT NO. 19046A SUMMARY OF FEES EXHIBIT A-2 Page 1 of 1 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit BPage 1 of 1 1 Rev 09/19 EXHIBIT C Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 Exhibit C coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services Table of Contents Page Article 1 – Definitions and Terminology ....................................................................................................... 2 Article 2 – Preliminary Matters ..................................................................................................................... 8 Article 3 – Contract Documents: Intent, Requirements, Reuse ................................................................... 8 Article 4 – Commencement and Progress of the Work ................................................................................ 9 Article 5 – Availability of Lands; Subsurface, Physical and Hazardous Environmental Conditions .............. 9 Article 6 – Bonds and Insurance ................................................................................................................. 10 Article 7 – Contractor’s Responsibilities ..................................................................................................... 10 Article 8 – Other Work at the Site ............................................................................................................... 10 Article 9 – Owner’s and OPT’s Responsibilities ........................................................................................... 10 Article 10 – OAR’s and Designer’s Status During Construction .................................................................. 11 Article 11 – Amending the Contract Documents; Changes in the Work .................................................... 13 Article 12 – Change Management .............................................................................................................. 13 Article 13 – Claims ....................................................................................................................................... 14 Article 14 – Prevailing Wage Rate Requirements ....................................................................................... 16 Article 15 – Cost of the Work; Allowances; Unit Price Work ...................................................................... 16 Article 16 – Tests and Inspections; Correction, Removal, or Acceptance of Defective Work .................... 16 Article 17 – Payments to Contractor; Set-Offs; Completion; Correction Period ........................................ 16 Article 18 – Suspension of Work and Termination ..................................................................................... 16 Article 19 – Project Management ............................................................................................................... 16 Article 20 – Project Coordination ................................................................................................................ 16 Article 21 – Quality Management ............................................................................................................... 17 Article 22 – Final Resolution of Disputes .................................................................................................... 17 Article 23 – Minority/MBE/DBE Participation Policy .................................................................................. 17 Article 24 – Document Management .......................................................................................................... 17 Article 25 – Shop Drawings ......................................................................................................................... 17 Article 26 – Record Data ............................................................................................................................. 20 Article 27 – Construction Progress Schedule .............................................................................................. 21 Article 28 – Video and Photographic documentation ................................................................................ 21 Article 29 – Execution and Closeout ........................................................................................................... 21 Article 30 – Miscellaneous .......................................................................................................................... 22 Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 1 of 22 ARTICLE 1 – DEFINITIONS AND TERMINOLOGY 1.01 Defined Terms A.Terms with initial capital letters, including the term’s singular and plural forms, have the meanings indicated in this paragraph wherever used in the Bidding Requirements or Contract Documents. In addition to the terms specifically defined, terms with initial capital letters in the Contract Documents may include references to identified articles and paragraphs, and the titles of other documents or forms. 1.Addenda - Documents issued prior to the receipt of Bids which clarify or modify the Bidding Requirements or the proposed Contract Documents. 2.Agreement - The document executed between Owner and Contractor covering the Work. 3.Alternative Dispute Resolution - The process by which a disputed Claim may be settled as an alternative to litigation, if Owner and Contractor cannot reach an agreement between themselves. 4.Application for Payment - The forms used by Contractor to request payments from Owner and the supporting documentation required by the Contract Documents. 5.Award Date – The date the City Council of the City of Corpus Christi (City) authorizes the City Manager or designee to execute the Contract on behalf of the City. 6.Bid - The documents submitted by a Bidder to establish the proposed Contract Price and Contract Times and provide other information and certifications as required by the Bidding Requirements. 7.Bidding Documents - The Bidding Requirements, the proposed Contract Documents, and Addenda. 8.Bidder - An individual or entity that submits a Bid to Owner. 9.Bidding Requirements - The Invitation for Bids, Instructions to Bidders, Bid Security, Bid Form and attachments, and required certifications. 10.Bid Security - The financial security in the form of a bid bond provided by Bidder at the time the Bid is submitted and held by Owner until the Agreement is executed and the evidence of insurance and Bonds required by the Contract Documents are provided. A cashier’s check, certified check, money order or bank draft from any State or National Bank will also be acceptable. 11.Bonds - Performance Bond, Payment Bond, Maintenance Bond, and other Surety instruments executed by Surety. When in singular form, refers to individual instrument. 12.Change Order - A document issued on or after the Effective Date of the Contract and signed by Owner and Contractor which modifies the Work, Contract Price, Contract Times, or terms and conditions of the Contract. 13.Change Proposal - A document submitted by Contractor in accordance with the requirements of the Contract Documents: a.Requesting an adjustment in Contract Price or Contract Times; Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 2 of 22 b. Contesting an initial decision concerning the requirements of the Contract Documents or the acceptability of Work under the Contract Documents; c. Challenging a set-off against payment due; or d. Seeking a Modification with respect to the terms of the Contract. 14. City Engineer - The Corpus Christi City Engineer and/or his designated representative as identified at the preconstruction conference or in the Notice to Proceed. 15. Claim - A demand or assertion by Owner or Contractor submitted in accordance with the requirements of the Contract Documents. A demand for money or services by an entity other than the Owner or Contractor is not a Claim. 16. Constituent of Concern - Asbestos, petroleum, radioactive materials, polychlorinated biphenyls (PCBs), hazardous wastes, and substances, products, wastes, or other materials that are or become listed, regulated, or addressed pursuant to: a. The Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§9601 et seq. (“CERCLA”); b. The Hazardous Materials Transportation Act, 49 U.S.C. §§5101 et seq.; c. The Resource Conservation and Recovery Act, 42 U.S.C. §§6901 et seq. (“RCRA”); d. The Toxic Substances Control Act, 15 U.S.C. §§2601 et seq.; e. The Clean Water Act, 33 U.S.C. §§1251 et seq.; f. The Clean Air Act, 42 U.S.C. §§7401 et seq.; or g. Any other Laws or Regulations regulating, relating to, or imposing liability or standards of conduct concerning hazardous, toxic, or dangerous waste, substance, or material. 17. Contract - The entire integrated set of documents concerning the Work and describing the relationship between the Owner and Contractor. 18. Contract Amendment - A document issued on or after the Effective Date of the Contract and signed by Owner and Contractor which: a. Authorizes new phases of the Work and establishes the Contract Price, Contract Times, or terms and conditions of the Contract for the new phase of Work; or b. Modifies the terms and conditions of the Contract, but does not make changes in the Work. 19. Contract Documents - Those items designated as Contract Documents in the Agreement. 20. Contract Price - The monetary amount stated in the Agreement and as adjusted by Modifications, and increases or decreases in unit price quantities, if any, that Owner has agreed to pay Contractor for completion of the Work in accordance with the Contract Documents. 21. Contract Times - The number of days or the dates by which Contractor must: a. Achieve specified Milestones; Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 3 of 22 b. Achieve Substantial Completion; and c. Complete the Work. 22. Contractor - The individual or entity with which Owner has contracted for performance of the Work. 23. Contractor’s Team - Contractor and Subcontractors, Suppliers, individuals, or entities directly or indirectly employed or retained by them to perform part of the Work or anyone for whose acts they may be liable. 24. Cost of the Work - The sum of costs incurred for the proper performance of the Work as allowed by Article 15. 25. Defective - When applied to Work, refers to Work that is unsatisfactory, faulty, or deficient in that it: a. Does not conform to the Contract Documents; b. Does not meet the requirements of applicable inspections, reference standards, tests, or approvals referred to in the Contract Documents; or c. Has been damaged or stolen prior to OAR’s recommendation of final payment unless responsibility for the protection of the Work has been assumed by Owner at Substantial Completion in accordance with Paragraphs 17.12 or 17.13. 26. Designer - The individuals or entity named as Designer in the Agreement and the subconsultants, individuals, or entities directly or indirectly employed or retained by Designer to provide design or other technical services to the Owner. Designer has responsibility for engineering or architectural design and technical issues related to the Contract Documents. Designers are Licensed Professional Engineers, Registered Architects or Registered Landscape Architects qualified to practice their profession in the State of Texas. 27. Drawings - The part of the Contract that graphically shows the scope, extent, and character of the Work. Shop Drawings and other Contractor documents are not Drawings. 28. Effective Date of the Contract - The date indicated in the Agreement on which the City Manager or designee has signed the Contract. 29. Field Order - A document issued by OAR or Designer requiring changes in the Work that do not change the Contract Price or the Contract Times. 30. Hazardous Environmental Condition - The presence of Constituents of Concern at the Site in quantities or circumstances that may present a danger to persons or property exposed to Constituents of Concern. The presence of Constituents of Concern at the Site necessary for the execution of the Work or to be incorporated in the Work is not a Hazardous Environmental Condition provided these Constituents of Concern are controlled and contained pursuant to industry practices, Laws and Regulations, and the requirements of the Contract. 31. Indemnified Costs - All costs, losses, damages, and legal or other dispute resolution costs resulting from claims or demands against Owner’s Indemnitees. These costs include fees for engineers, architects, attorneys, and other professionals. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 4 of 22 32. Laws and Regulations; Laws or Regulations - Applicable laws, statutes, rules, regulations, ordinances, codes, and orders of governmental bodies, agencies, authorities, and courts having jurisdiction over the Project. 33. Liens - Charges, security interests, or encumbrances upon Contract related funds, real property, or personal property. 34. Milestone - A principal event in the performance of the Work that Contractor is required by Contract to complete by a specified date or within a specified period of time. 35. Modification - Change made to the Contract Documents by one of the following methods: a. Contract Amendment; b. Change Order; c. Field Order; or d. Work Change Directive. 36. Notice of Award - The notice of Owner’s intent to enter into a contract with the Selected Bidder. 37. Notice to Proceed - A notice to Contractor of the Contract Times and the date Work is to begin. 38. Owner - The City of Corpus Christi (City), a Texas home-rule municipal corporation and political subdivision organized under the laws of the State of Texas, acting by and through its duly authorized City Manager and his designee, the City Engineer (the Director of Engineering Services), and the City’s officers, employees, agents, or representatives, authorized to administer design and construction of the Project. 39. Owner’s Authorized Representative or OAR - The individual or entity named as OAR in the Agreement and the consultants, subconsultants, individuals, or entities directly or indirectly employed or retained by them to provide construction management services to the Owner. The OAR may be an employee of the Owner. 40. Owner’s Indemnitees - Each member of the OPT and their officers, directors, members, partners, employees, agents, consultants, and subcontractors. 41. Owner’s Project Team or OPT - The Owner, Owner’s Authorized Representative, Resident Project Representative, Designer, and the consultants, subconsultants, individuals, or entities directly or indirectly employed or retained by them to provide services to the Owner. 42. Partial Occupancy or Use - Use by Owner of a substantially completed part of the Work for the purpose for which it is intended (or a related purpose) prior to Substantial Completion of all the Work. 43. Progress Schedule - A schedule prepared and maintained by Contractor, describing the sequence and duration of the activities comprising the Contractor’s plan to accomplish the Work within the Contract Times. The Progress Schedule must be a Critical Path Method (CPM) Schedule. 44. Project - The total undertaking to be accomplished for Owner under the Contract Documents. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 5 of 22 45. Resident Project Representative or RPR - The authorized representative of OPT assigned to assist OAR at the Site. As used herein, the term Resident Project Representative includes assistants and field staff of the OAR. 46. Samples - Physical examples of materials, equipment, or workmanship representing some portion of the Work that are used to establish the standards for that portion of the Work. 47. Schedule of Documents - A schedule of required documents, prepared, and maintained by Contractor. 48. Schedule of Values - A schedule, prepared and maintained by Contractor, allocating portions of the Contract Price to various portions of the Work and used as the basis for Contractor’s Applications for Payment. 49. Selected Bidder - The Bidder to which Owner intends to award the Contract. 50. Shop Drawings - All drawings, diagrams, illustrations, schedules, and other data or information that are specifically prepared or assembled and submitted by Contractor to illustrate some portion of the Work. Shop Drawings, whether approved or not, are not Drawings and are not Contract Documents. 51. Site - Lands or areas indicated in the Contract Documents as being furnished by Owner upon which the Work is to be performed. The Site includes rights-of-way, easements, and other lands furnished by Owner which are designated for use by the Contractor. 52. Specifications - The part of the Contract that describes the requirements for materials, equipment, systems, standards, and workmanship as applied to the Work, and certain administrative requirements and procedural matters applicable to the Work. 53. Subcontractor - An individual or entity having a direct contract with Contractor or with other Subcontractors or Suppliers for the performance of a part of the Work. 54. Substantial Completion - The point where the Work or a specified part of the Work is sufficiently complete to be used for its intended purpose in accordance with the Contract Documents. 55. Supplementary Conditions - The part of the Contract that amends or supplements the General Conditions. 56. Supplier - A manufacturer, fabricator, supplier, distributor, materialman, or vendor having a direct contract with Contractor or with Subcontractors or other Suppliers to furnish materials or equipment to be incorporated in the Work. 57. Technical Data - Those items expressly identified as Technical Data in the Supplementary Conditions with respect to either: a. Subsurface conditions at the Site; b. Physical conditions relating to existing surface or subsurface structures at the Site, except Underground Facilities; or c. Hazardous Environmental Conditions at the Site. 58. Underground Facilities - All underground pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks, tunnels, other similar facilities or appurtenances, and encasements containing these facilities which are used to convey electricity, gases, Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 6 of 22 steam, liquid petroleum products, telephone or other communications, fiber optic transmissions, cable television, water, wastewater, storm water, other liquids or chemicals, or traffic or other control systems. 59. Unit Price Work - Work to be paid for on the basis of unit prices. 60. Work - The construction of the Project or its component parts as required by the Contract Documents. 61. Work Change Directive - A directive issued to Contractor on or after the Effective Date of the Contract ordering an addition, deletion, or revision in the Work. The Work Change Directive serves as a memorandum of understanding regarding the directive until a Change Order can be issued. 1.02 Terminology A. The words and terms discussed in this Paragraph 1.02 are not defined, but when used in the Bidding Requirements or Contract Documents, have the indicated meaning. B. It is understood that the cost for performing Work is included in the Contract Price and no additional compensation is to be paid by Owner unless specifically stated otherwise in the Contract Documents. Expressions including or similar to “at no additional cost to Owner,” “at Contractor’s expense,” or similar words mean that the Contractor is to perform or provide specified operation of Work without an increase in the Contract Price. C. The terms “day” or “calendar day” mean a calendar day of 24 hours measured from midnight to the next midnight. D. The meaning and intent of certain terms or adjectives are described as follows: 1. The terms “as allowed,” “as approved,” “as ordered,” “as directed,” or similar terms in the Contract Documents indicate an exercise of professional judgment by the OPT. 2. Adjectives including or similar to “reasonable,” “suitable,” “acceptable,” “proper,” “satisfactory,” or similar adjectives are used to describe a determination of OPT regarding the Work. 3. Any exercise of professional judgment by the OPT will be made solely to evaluate the Work for general compliance with the Contract Documents unless there is a specific statement in the Contract Documents indicating otherwise. 4. The use of these or similar terms or adjectives does not assign a duty or give OPT authority to supervise or direct the performance of the Work, or assign a duty or give authority to the OPT to undertake responsibilities contrary to the provisions of Articles 9 or 10 or other provisions of the Contract Documents. E. The use of the words “furnish,” “install,” “perform,” and “provide” have the following meanings when used in connection with services, materials, or equipment: 1. Furnish means to supply and deliver the specified services, materials, or equipment to the Site or other specified location ready for use or installation. 2. Install means to complete construction or assembly of the specified services, materials, or equipment so they are ready for their intended use. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 7 of 22 3. Perform or provide means to furnish and install specified services, materials, or equipment, complete and ready for their intended use. 4. Perform or provide the specified services, materials, or equipment complete and ready for intended use if the Contract Documents require specific services, materials, or equipment, but do not expressly use the words “furnish,” “install,” “perform,” or “provide.” F. Contract Documents are written in modified brief style: 1. Requirements apply to all Work of the same kind, class, and type even though the word “all” is not stated. 2. Simple imperative sentence structure is used which places a verb as the first word in the sentence. It is understood that the words “furnish,” “install,” “perform,” “provide,” or similar words include the meaning of the phrase “The Contractor shall...” before these words. 3. Unless specifically stated that action is to be taken by the OPT or others, it is understood that the action described is a requirement of the Contractor. G. Words or phrases that have a well-known technical or construction industry or trade meaning are used in the Contract Documents in accordance with this recognized meaning unless stated otherwise in the Contract Documents. H. Written documents are required where reference is made to notices, reports, approvals, consents, documents, statements, instructions, opinions or other types of communications required by the Contract Documents. Approval and consent documents must be received by Contractor prior to the action or decision for which approval or consent is given. These may be made in printed or electronic format through the OPT’s project management information system or other electronic media as required by the Contract Documents or approved by the OAR. I. Giving notice as required by the Contract Documents may be by printed or electronic media using a method that requires acknowledgment of the receipt of that notice. ARTICLE 2 – PRELIMINARY MATTERS ARTICLE 3 – CONTRACT DOCUMENTS: INTENT, REQUIREMENTS, REUSE 3.01 Intent B. Provide equipment that is functionally complete as described in the Contract Documents. The Drawings and Specifications do not indicate or describe all of the Work required to complete the installation of products purchased by the Owner or Contractor. Additional details required for the correct installation of selected products are to be provided by the Contractor and coordinated with the Designer through the OAR. 3.02 Reference Standards Comply with applicable construction industry standards, whether referenced or not. 1. Standards referenced in the Contract Documents govern over standards not referenced but recognized as applicable in the construction industry. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 8 of 22 2. Comply with the requirements of the Contract Documents if they produce a higher quality of Work than the applicable construction industry standards. 3. Designer determines whether a code or standard is applicable, which of several are applicable, or if the Contract Documents produce a higher quality of Work. 3.03 Reporting and Resolving Discrepancies 3.04 Interpretation of the Contract Documents Submit questions regarding the design of the Project described in the Contract Documents to the OAR immediately after those questions arise. OAR is to request an interpretation of the Contract Documents from the Designer. Designer is to respond to these questions by providing an interpretation of the Contract Documents. OAR will coordinate the response of the OPT to Contractor. C. OPT may initiate a Modification to the Contract Documents through the OAR if a response to the question indicates that a change in the Contract Documents is required. Contractor may appeal Designer’s or OAR’s interpretation by submitting a Change Proposal. ARTICLE 4 – COMMENCEMENT AND PROGRESS OF THE WORK ARTICLE 5 – AVAILABILITY OF LANDS; SUBSURFACE AND PHYSICAL CONDITIONS; HAZARDOUS ENVIRONMENTAL CONDITIONS 5.01 Availability of Lands 5.02 Use of Site and Other Areas 5.03 Subsurface and Physical Conditions 5.04 Differing Subsurface or Physical Conditions OAR is to notify the OPT after receiving notice of a differing subsurface or physical condition from the Contractor. Designer is to: 1. Promptly review the subsurface or physical condition; 2. Determine the necessity of OPT’s obtaining additional exploration or tests with respect the subsurface or physical condition; 3. Determine if the subsurface or physical condition falls within one or more of the differing Site condition categories in Paragraph 5.04.A; 4. Prepare recommendations to OPT regarding the Contractor’s resumption of Work in connection with the subsurface or physical condition in question; 5. Determine the need for changes in the Drawings or Specifications; and 6. Advise OPT of Designer’s findings, conclusions, and recommendations. C. OAR is to issue a statement to Contractor regarding the subsurface or physical condition in question and recommend action as appropriate after review of Designer’s findings, conclusions, and recommendations. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 9 of 22 5.05 Underground Facilities The Designer is to take the following action after receiving notice from the OAR: 1. Promptly review the Underground Facility and conclude whether the Underground Facility was not shown or indicated in the Contract Documents, or was not shown or indicated with reasonable accuracy; 2. Prepare recommendations to OPT regarding the Contractor’s resumption of Work in connection with this Underground Facility; 3. Determine the extent to which a change is required in the Drawings or Specifications to document the consequences of the existence or location of the Underground Facility; and 4. Advise OAR of Designer’s findings, conclusions, and recommendations and provide revised Drawings and Specifications if required. D. OAR is to issue a statement to Contractor regarding the Underground Facility in question and recommend action as appropriate after review of Designer’s findings, conclusions, and recommendations. ARTICLE 6 – BONDS AND INSURANCE ARTICLE 7 – CONTRACTOR’S RESPONSIBILITIES ARTICLE 8 – OTHER WORK AT THE SITE ARTICLE 9 – OWNER’S AND OPT’S RESPONSIBILITIES 9.01 Communications to Contractor A. OPT issues communications to Contractor through OAR except as otherwise provided in the Contract Documents. 9.02 Replacement of Owner’s Project Team Members A. Owner may replace members of the OPT at its discretion. 9.03 Furnish Data A. OPT is to furnish the data required of OPT under the Contract Documents. 9.04 Pay When Due 9.05 Lands and Easements; Reports and Tests A. Owner’s duties with respect to providing lands and easements are described in Paragraph 5.01. OPT will make copies of reports of explorations and tests of subsurface conditions and drawings of physical conditions relating to existing surface or subsurface structures at the Site available to Contractor in accordance with Paragraph 5.03. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 10 of 22 9.06 Insurance 9.07 Modifications 9.08 Inspections, Tests, and Approvals A. OPT’s responsibility with respect to certain inspections, tests, and approvals are described in Paragraph 16.02. 9.09 Limitations on OPT’s Responsibilities A. The OPT does not supervise, direct, or have control or authority over, and is not responsible for Contractor’s means, methods, techniques, sequences, or procedures of construction, or related safety precautions and programs, or for failure of Contractor to comply with Laws and Regulations applicable to the performance of the Work. OPT is not responsible for Contractor’s failure to perform the Work in accordance with the Contract Documents. 9.10 Undisclosed Hazardous Environmental Condition A. OPT’s responsibility for undisclosed Hazardous Environmental Conditions is described in Paragraph 5.06. 9.11 Compliance with Safety Program A. Contractor is to inform the OPT of its safety programs and OPT is to comply with the specific applicable requirements of this program. ARTICLE 10 – OAR’S AND DESIGNER’S STATUS DURING CONSTRUCTION 10.01 Owner’s Representative A. OAR is Owner’s representative. The duties and responsibilities and the limitations of authority of OAR as Owner’s representative are described in the Contract Documents. 10.02 Visits to Site A. Designer is to make periodic visits to the Site to observe the progress and quality of the Work. Designer is to determine, in general, if the Work is proceeding in accordance with the Contract Documents based on observations made during these visits. Designer is not required to make exhaustive or continuous inspections to check the quality or quantity of the Work. Designer is to inform the OPT of issues or concerns and OAR is to work with Contractor to address these issues or concerns. Designer’s visits and observations are subject to the limitations on Designer’s authority and responsibility described in Paragraphs 9.09 and 10.07. B. OAR is to observe the Work to check the quality and quantity of Work, implement Owner’s quality assurance program, and administer the Contract as Owner’s representative as described in the Contract Documents. OAR’s visits and observations are subject to the limitations on OAR’s authority and responsibility described in Paragraphs 9.09 and 10.07. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 11 of 22 10.03 Resident Project Representatives A. Resident Project Representatives assist OAR in observing the progress and quality of the Work at the Site. The limitations on Resident Project Representatives’ authority and responsibility are described in Paragraphs 9.09 and 10.07. 10.04 Rejecting Defective Work A. OPT has the authority to reject Work in accordance with Article 16. OAR is to issue a Defective Work Notice to Contractor and document when Defective Work has been corrected or accepted in accordance with Article 16. 10.05 Shop Drawings, Modifications and Payments A. Designer’s authority related to Shop Drawings and Samples are described in the Contract Documents. B. Designer’s authority related to design calculations and design drawings submitted in response to a delegation of professional design services are described in Paragraph 7.15. C. OAR and Designer’s authority related to Modifications is described in Article 11. D. OAR’s authority related to Applications for Payment is described in Articles 15 and 17. 10.06 Decisions on Requirements of Contract Documents and Acceptability of Work A. OAR is to render decisions regarding non-technical or contractual / administrative requirements of the Contract Documents and will coordinate the response of the OPT to Contractor. B. Designer is to render decisions regarding the conformance of the Work to the requirements of the Contract Documents. Designer will render a decision to either correct the Defective Work, or accept the Work under the provisions of Paragraph 16.04, if Work does not conform to the Contract Documents. OAR will coordinate the response of the OPT to Contractor. C. OAR will issue a Request for a Change Proposal if a Modification is required. OAR will provide documentation for changes related to the non-technical or contractual / administrative requirements of the Contract Documents. Designer will provide documentation if design related changes are required. D. Contractor may appeal Designer’s decision by submitting a Change Proposal if Contractor does not agree with the Designer’s decision. 10.07 Limitations on OAR’s and Designer’s Authority and Responsibilities A. OPT is not responsible for the acts or omissions of Contractor’s Team. No actions or failure to act, or decisions made in good faith to exercise or not exercise the authority or responsibility available under the Contract Documents creates a duty in contract, tort, or otherwise of the OPT to the Contractor or members of the Contractor’s Team. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 12 of 22 ARTICLE 11 – AMENDING THE CONTRACT DOCUMENTS; CHANGES IN THE WORK ARTICLE 12 – CHANGE MANAGEMENT 12.01 Requests for Change Proposal A. Designer will initiate Modifications by issuing a Request for a Change Proposal (RCP). 1. Designer will prepare a description of proposed Modifications. 2. Designer will issue the Request for a Change Proposal form to Contractor. A number will be assigned to the Request for a Change Proposal when issued. 3. Return a Change Proposal in accordance with Paragraph 12.02 to the Designer for evaluation by the OPT. 12.02 Change Proposals A. Submit a Change Proposal (CP) to the Designer for Contractor initiated changes in the Contract Documents or in response to a Request for Change Proposal. 1. Use the Change Proposal form provided. 2. Assign a number to the Change Proposal when issued. 3. Include with the Change Proposal: a. A complete description of the proposed Modification if Contractor initiated or proposed changes to the OPT’s description of the proposed Modification. b. The reason the Modification is requested, if not in response to a Request for a Change Proposal. c. A detailed breakdown of the cost of the change if the Modification requires a change in Contract Price. The itemized breakdown is to include: 1) List of materials and equipment to be installed; 2) Man hours for labor by classification; 3) Equipment used in construction; 4) Consumable supplies, fuels, and materials; 5) Royalties and patent fees; 6) Bonds and insurance; 7) Overhead and profit; 8) Field office costs; 9) Home office cost; and 10) Other items of cost. d. Provide the level of detail outlined in the paragraph above for each Subcontractor or Supplier actually performing the Work if Work is to be provided by a Subcontractor or Supplier. Indicate appropriate Contractor mark-ups for Work Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 13 of 22 provided through Subcontractors and Suppliers. Provide the level of detail outline in the paragraph above for self-performed Work. e. Submit Change Proposals that comply with Article 15 for Cost of Work. f. Provide a revised schedule. Show the effect of the change on the Project Schedule and the Contract Times. B. Submit a Change Proposal to the Designer to request a Field Order. C. A Change Proposal is required for all substitutions or deviations from the Contract Documents. D. Request changes to products in accordance with Article 25. 12.03 Designer Will Evaluate Request for Modification A. Designer will issue a Modification per Article 11 if the Change Proposal is acceptable to the Owner. Designer will issue a Change Order or Contract Amendment for any changes in Contract Price or Contract Times. 1. Change Orders and Contract Amendments will be sent to the Contractor for execution with a copy to the Owner recommending approval. A Work Change Directive may be issued if Work needs to progress before the Change Order or Contract Amendment can be authorized by the Owner. 2. Work Change Directives, Change Orders, and Contract Amendments can only be approved by the Owner. a. Work performed on the Change Proposal prior to receiving a Work Change Directive or approval of the Change Order or Contract Amendment is performed at the Contractor’s risk. b. No payment will be made for Work on Change Orders or Contract Amendments until approved by the Owner. B. The Contractor may be informed that the Request for a Change Proposal is not approved and construction is to proceed in accordance with the Contract Documents. ARTICLE 13 – CLAIMS 13.01 Claims 13.02 Claims Process A. Claims must be initiated by written notice. Notice must conspicuously state that it is a notice of a Claim in the subject line or first sentence. Notice must also list the date of first occurrence of the claimed event. B. Claims by Contractor must be in writing and delivered to the Owner, Designer and the OAR within 7 days: 1. After the start of the event giving rise to the Claim; or 2. After a final decision on a Change Proposal has been made. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 14 of 22 C. Claims by Contractor that are not received within the time period provided by section 13.02(B) are waived. Owner may choose to deny such Claims without a formal review. Any Claims by Contractor that are not brought within 90 days following the termination of the Contract are waived and shall be automatically deemed denied. D. Claims by Owner must be submitted by written notice to Contractor. E. The responsibility to substantiate a Claim rests with the entity making the Claim. Claims must contain sufficient detail to allow the other party to fully review the Claim. 1. Claims seeking an adjustment of Contract Price must include the Contractor’s job cost report. Provide additional documentation as requested by OAR. 2. Claims seeking an adjustment of Contract Time must include native schedule files in Primavera or MS Project digital format. Provide additional documentation as requested by OAR. F. Contractor must certify that the Claim is made in good faith, that the supporting data is accurate and complete, and that to the best of Contractor’s knowledge and belief, the relief requested accurately reflects the full compensation to which Contractor is entitled. G. Claims by Contractor against Owner and Claims by Owner against Contractor, including those alleging an error or omission by Designer but excluding those arising under Section 7.12, shall be referred initially to Designer for consideration and recommendation to Owner. H. Designer may review a Claim by Contractor within 30 days of receipt of the Claim and take one or more of the following actions: 1. Request additional supporting data from the party who made the Claim; 2. Issue a recommendation; 3. Suggest a compromise; or 4. Advise the parties that Designer is not able to make a recommendation due to insufficient information or a conflict of interest. I. If the Designer does not take any action, the claim shall be deemed denied. J. The Contractor and the Owner shall seek to resolve the Claim through the exchange of information and direct negotiations. If no agreement is reached within 90 days, the Claim shall be deemed denied. The Owner and Contractor may extend the time for resolving the Claim by mutual agreement. Notify OAR of any actions taken on a Claim. K. Owner and Contractor may mutually agree to mediate the underlying dispute at any time after a recommendation is issued by the Designer. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 15 of 22 ARTICLE 14 – PREVAILING WAGE RATE REQUIREMENTS ARTICLE 15 – COST OF THE WORK; ALLOWANCES; UNIT PRICE WORK ARTICLE 16 – TESTS AND INSPECTIONS; CORRECTION, REMOVAL, OR ACCEPTANCE OF DEFECTIVE WORK ARTICLE 17 – PAYMENTS TO CONTRACTOR; SET-OFFS; COMPLETION; CORRECTION PERIOD ARTICLE 18 – SUSPENSION OF WORK AND TERMINATION ARTICLE 19 – PROJECT MANAGEMENT ARTICLE 20 – PROJECT COORDINATION 20.01 Work Included 20.02 Document Submittal 20.03 Communication During Project A. The OAR is to be the first point of contact for all parties on matters concerning this Project. B. The Designer will coordinate correspondence concerning: 1. Documents, including Applications for Payment. 2. Clarification and interpretation of the Contract Documents. 3. Contract Modifications. 4. Observation of Work and testing. 5. Claims. 20.04 Requests for Information A. Submit Request for Information (RFI) to the Designer to obtain additional information or clarification of the Contract Documents. 1. Submit a separate RFI for each item on the form provided. 2. Attach adequate information to permit a written response without further clarification. Designer will return requests that do not have adequate information to the Contractor for additional information. Contractor is responsible for all delays resulting from multiple document submittals due to inadequate information. 3. A response will be made when adequate information is provided. Response will be made on the RFI form or in attached information. B. Response to an RFI is given to provide additional information, interpretation, or clarification of the requirements of the Contract Documents, and does not modify the Contract Documents. C. Designer will initiate a Request for a Change Proposal (RCP) per Article 12 if the RFI indicates that a Contract Modification is required. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 16 of 22 ARTICLE 21 – QUALITY MANAGEMENT ARTICLE 22 – FINAL RESOLUTION OF DISPUTES ARTICLE 23 – MINORITY/MBE/DBE PARTICIPATION POLICY ARTICLE 24 – DOCUMENT MANAGEMENT ARTICLE 25 – SHOP DRAWINGS 25.01 Work Included A. Shop Drawings are required for those products that cannot adequately be described in the Contract Documents to allow fabrication, erection, or installation of the product without additional detailed information from the Supplier. B. Submit Shop Drawings as required by the Contract Documents and as reasonably requested by the OPT to: 1. Record the products incorporated into the Project for the Owner; 2. Provide detailed information for the products proposed for the Project regarding their fabrication, installation, commissioning, and testing; and 3. Allow the Designer to advise the Owner if products proposed for the Project by the Contractor conform, in general, to the design concepts of the Contract Documents. 25.02 Quality Assurance 25.03 Contractor’s Responsibilities 25.04 Shop Drawing Requirements A. Provide adequate information in Shop Drawings and Samples so Designer can: 1. Assist the Owner in selecting colors, textures, or other aesthetic features. 2. Compare the proposed features of the product with the specified features and advise Owner that the product does, in general, conform to the Contract Documents. 3. Compare the performance features of the proposed product with those specified and advise the Owner that the product does, in general, conform to the performance criteria specified in the Contract Documents. 4. Review required certifications, guarantees, warranties, and service agreements for compliance with the Contract Documents. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 17 of 22 25.05 Special Certifications and Reports 25.06 Warranties and Guarantees 25.07 Shop Drawing Submittal Procedures 25.08 Sample and Mockup Submittal Procedures 25.09 Requests for Deviation 25.10 Designer Responsibilities A. Shop Drawings will be received by the Designer. Designer will log the documents and review per this Article for general conformance with the Contract Documents. 1. Designer’s review and approval will be only to determine if the products described in the Shop Drawing or Sample will, after installation or incorporation into the Work, conform to the information given in the Contract Documents and be compatible with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. 2. Designer’s review and approval will not extend to means, methods, techniques, sequences, or procedures of construction or to safety precautions or programs incident thereto. 3. Designer’s review and approval of a separate item as such will not indicate approval of the assembly in which the item functions. B. Comments will be made on items called to the attention of the Designer for review and comment. Any marks made by the Designer do not constitute a blanket review of the document submittal or relieve the Contractor from responsibility for errors or deviations from the Contract requirements. 1. Designer will respond to Contractor’s markups by either making markups directly in the Shop Drawings file using the color green or by attaching a Document Review Comments form with review comments. 2. Shop Drawings that are reviewed will be returned with one or more of the following status designations: a. Approved: Shop Drawing is found to be acceptable as submitted. b. Approved as Noted: Shop Drawing is Approved so long as corrections or notations made by Designer are incorporated into the Show Drawing. c. Not Approved: Shop Drawing or products described are not acceptable. 3. Shop Drawing will also be designated for one of the following actions: a. Final distribution: Shop Drawing is acceptable without further action and has been filed as a record document. b. Shop Drawing not required: A Shop Drawing was not required by the Contract Documents. Resubmit the document per Article 26. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 18 of 22 c. Cancelled: This action indicates that for some reason, the Shop Drawing is to be removed from consideration and all efforts regarding the processing of that document are to cease. d. Revise and resubmit: Shop Drawing has deviations from the Contract Documents, significant errors, or is inadequate and must be revised and resubmitted for subsequent review. e. Resubmit with corrections made: Shop Drawing is “Approved as Noted,” but has significant markups. Make correction and notations to provide a revised document with markup incorporated into the original document so that no markups are required. f. Returned without review due to excessive deficiencies: Document does not meet the requirement of the Specifications for presentation or content to the point where continuing to review the document would be counterproductive to the review process or clearly does not meet the requirements of the Contract Documents. Revise the Shop Drawing to comply with the requirements of this Section and resubmit. g. Actions a through c will close out the Shop Drawing review process and no further action is required as a Shop Drawing. Actions d through f require follow up action to close out the review process. 4. Drawings with a significant or substantial number of markings by the Contractor may be marked “Approved as Noted” and “Resubmit with corrections made.” These drawings are to be revised to provide a clean record of the Shop Drawing. Proceed with ordering products as the documents are revised. 5. Dimensions or other data that does not appear to conform to the Contract Documents will be marked as “At Variance With” (AVW) the Contract Documents or other information provided. The Contractor is to make revisions as appropriate to comply with the Contract Documents. C. Bring deviations to the Shop Drawings to the attention of the Designer for approval by using the Shop Drawing Deviation Request form. Use a single line for each requested deviation so the Status and Action for each deviation can be determined for that requested deviation. If approval or rejection of a requested deviation will impact other requested deviations, then all related deviations should be included in that requested deviation line so the status and action can be determined on the requested deviation as a whole. D. Requested deviations will be reviewed as possible Modification to the Contract Documents. 1. A Requested deviation will be rejected as “Not Approved” if the requested deviation is unacceptable. Contractor is to revise and resubmit the Shop Drawing with corrections for approval. 2. A Field Order will be issued by the Designer for deviations approved by the Designer if the requested deviation is acceptable and if the requested deviation will not result in a change in Contract Price or Contract Times. Requested deviations from the Contract Documents may only be approved by Field Order. 3. A requested deviation will be rejected if the requested deviation is acceptable but the requested deviation will or should result in a change in Contract Price or Contract Times. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 19 of 22 Submit any requested deviation that requires a change in Contract Price or Contract Times as a Change Proposal for approval prior to resubmitting the Shop Drawing. E. Contractor is to resubmit the Shop Drawing until it is acceptable and marked Approved or Approved as Noted and is assigned an action per Paragraph 25.10.B that indicates that the Shop Drawing process is closed. F. Information that is submitted as a Shop Drawings that should be submitted as Record Data or other type of document, or is not required may be returned without review, or may be deleted. No further action is required and the Shop Drawing process for this document will be closed. ARTICLE 26 – RECORD DATA 26.01 Work Included 26.02 Quality Assurance 26.03 Contractor’s Responsibilities 26.04 Record Data Requirements 26.05 Special Certifications and Reports 26.06 Warranties and Guarantees 26.07 Record Data Submittal Procedures 26.08 Designer’s Responsibilities A. Record Data will be received by the Designer, logged, and provided to Owner as the Project record. 1. Record Data may be reviewed to see that the information provided is adequate for the purpose intended. Record Data not meeting the requirements of Paragraph 26.02 may be rejected as unacceptable. 2. Record Data is not reviewed for compliance with the Contract Documents. Comments may be returned if deviations from the Contract Documents are noted during the cursory review performed to see that the information is adequate. 3. Contractor’s responsibility for full compliance with the Contract Documents is not relieved by the review of Record Data. Contract modifications can only be approved by a Modification. B. Designer may take the following action in processing Record Data: 1. File Record Data as received if the cursory review indicates that the document meets the requirements of Paragraph 26.02. Document will be given the status of “Filed as Received” and no further action is required on that Record Data. 2. Reject the Record Data for one of the following reasons: a. The document submittal requirements of the Contract Documents indicate that the document submitted as Record Data should have been submitted as a Shop Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 20 of 22 Drawing. The Record Data will be marked “Rejected” and “Submit Shop Drawing.” No further action is required on this document as Record Data and the Record Data process will be closed. Resubmit the document as a Shop Drawing per Article 25. b. The cursory review indicates that the document does not meet the requirements of Paragraph 26.02. The Record Data will be marked “Rejected” and “Revise and Resubmit.” Contractor is to resubmit the Record Data until it is acceptable and marked “Filed as Received.” When Record Data is filed, no further action is required and the Record Data process will be closed. c. The Record Data is not required by the Contract Documents nor is the Record Data applicable to the Project. The Record Data will be marked “Rejected” and “Cancel - Not Required.” No further action is required and the Record Data process will be closed. C. Contractor is to resubmit the Record Data until it is acceptable and marked “Filed as Received.” ARTICLE 27 – CONSTRUCTION PROGRESS SCHEDULE ARTICLE 28 – VIDEO AND PHOTOGRAPHIC DOCUMENTATION ARTICLE 29 – EXECUTION AND CLOSEOUT 29.01 Substantial Completion A. Notify the Designer that the Work or a designated portion of the Work is substantially complete per the General Conditions. Include a list of the items remaining to be completed or corrected before the Project will be considered to be complete. B. OPT will visit the Site to observe the Work within a reasonable time after notification is received to determine the status of the Project. C. Designer will notify the Contractor that the Work is either substantially complete or that additional Work must be performed before the Project will be considered substantially complete. 1. Designer will notify the Contractor of items that must be completed before the Project will be considered substantially complete. 2. Correct the noted deficiencies in the Work. 3. Notify the Designer when the items of Work in the Designer’s notice have been completed. 4. OPT will revisit the Site and repeat the process. 5. Designer will issue a Certificate of Substantial Completion to the Contractor when the OPT considers the Project to be substantially complete. The Certificate will include a tentative list of items to be corrected before Final Payment will be recommended. 6. Review the list and notify the Designer of any objections to items on the list within 10 days after receiving the Certificate of Substantial Completion. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 21 of 22 29.02 Final Inspections A. Notify the Designer when: 1. Work has been completed in compliance with the Contract Documents; 2. Equipment and systems have been tested per Contract Documents and are fully operational; 3. Final Operations and Maintenance Manuals have been provided to the Owner and all operator training has been completed; 4. Specified spare parts and special tools have been provided; and 5. Work is complete and ready for final inspection. B. OPT will visit the Site to determine if the Project is complete and ready for Final Payment within a reasonable time after the notice is received. C. Designer will notify the Contractor that the Project is complete or will notify the Contractor that Work is Defective. D. Take immediate steps to correct Defective Work. Notify the Designer when Defective Work has corrected. OPT will visit the Site to determine if the Project is complete and the Work is acceptable. Designer will notify the Contractor that the Project is complete or will notify the Contractor that Work is Defective. E. Submit the Request for Final Payment with the closeout documents described in Paragraph 29.06 if notified that the Project is complete and the Work is acceptable. ARTICLE 30 – MISCELLANEOUS END OF SECTION Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 22 of 22 SUPPLIER NUMBER __________ TO BE ASSIGNED BY CITY PURCHASING DIVISION CITY OF CORPUS CHRISTI DISCLOSURE OF INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Every question must be answered. If the question is not applicable, answer with “NA”. See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: HDR Engineering, Inc. P. O. BOX: STREET ADDRESS: 555 N Carancahua, Ste 1600 CITY: Corpus Christi ZIP: 78401- FIRM IS: 1. Corporation 2. Partnership 3. Sole Owner 4. Association 5. Other ____________________________________ DISCLOSURE QUESTIONS If additional space is necessary, please use the reverse side of this page or attach separate sheet. 1. State the names of each “employee” of the City of Corpus Christi having an “ownership interest” constituting 3% or more of the ownership in the above named “firm.” Name Job Title and City Department (if known) N/A 2. State the names of each “official” of the City of Corpus Christi having an “ownership interest” constituting 3% or more of the ownership in the above named “firm.” Name Title N/A 3. State the names of each “board member” of the City of Corpus Christi having an “ownership interest” constituting 3% or more of the ownership in the above named “firm.” Name Board, Commission or Committee N/A 4. State the names of each employee or officer of a “consultant” for the City of Corpus Christi who worked on any matter related to the subject of this contract and has an “ownership interest” constituting 3% or more of the ownership in the above named “firm.” Name Consultant N/A hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 September 21, 2018 MCN 10037592 July 1, 2019 (Rev1) September 20, 2019 (Rev 2) September 23, 2019 (Rev 3) Mr. Jeff Edmonds, P.E. Director, Capital Programs City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469-9277 RE: PROPOSAL FOR PROFESSIONAL SERVICES FOR PACKERY CHANNEL DREDGING AND BEACH NOURISHMENT (19046A) Dear Mr. Edmonds: Thank you for inviting HDR to submit this proposal for professional engineering and regulatory services. Based on our recent correspondence, the City is requesting design, permitting, bidding, and construction-phase services for maintenance dredging at Packery Channel. The dredged material is planned to be placed as beach nourishment along the Padre Island seawall and in the vicinity of Whitecap Boulevard. Having a local team of coastal engineers and regulatory specialists on staff, several of whom helped complete the previous Packery Channel dredging and beach nourishment project for the City, we are well qualified to help. A detailed outline of HDR’s proposed services is provided below. SCOPE OF SERVICES HDR’s proposed services for this project consist of the following tasks: Task 1: 30% Preliminary Design HDR will participate in a kickoff meeting with City staff to review project scope, objectives, and timeline. The meeting will be held at the City’s office. Following the kickoff meeting, HDR will perform a site visit to observe general conditions at the planned beach nourishment project area, anticipated staging area(s), and dredging pipeline route. Results of the site visit will be documented in a site visit report with photographs. HDR will then perform preliminary design consisting of the following items: -Review readily-available aerial photography, as well as beach and channel monitoring data provided by the City, to develop a general site characterization for the project. -Review results of sieve and chemical analyses from sediment core samples taken from Packery Channel. The sampling, testing, chemical data interpretation, and associated reporting will be performed by a third-party consultant who is directly under contract with the City. Once these data have been provided to HDR, HDR will assess the sieve analyses and chemical test results to determine if the material EXHIBIT A Page 1 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 2 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 planned to be dredged from the channel is suitable for placement as beach nourishment. If the material is not beach-quality sand, HDR will provide conceptual-level recommendations for placement of the dredged material in other locations (such as for habitat restoration or in an upland placement area). - Review channel bathymetric survey data provided by the City to determine the channel locations in need of maintenance dredging, and the associated volumes. - Identify possible upland borrow sources that could potentially serve as alternative or supplemental (e.g. for maintenance purposes) sources of sand for nourishing the beach along the seawall. Up to three sources will be identified. This task will not include topographic surveys, sediment sampling/testing, environmental assessments, or regulatory coordination. - Review shoreline change data provided by the City to develop beach nourishment location and limits, planform shape, and cross sections. HDR will also coordinate with the City regarding potential funding and design requirements associated with project cost-sharing with the Texas General Land Office. - Develop preliminary dredging pipeline routes and public access crossings to minimize impacts to public use of the beach between Packery Channel and the beach nourishment area. - Perform regulatory review of U.S. Army Corps of Engineers (USACE) permit requirements, Texas General Land Office rules and policy, and Texas Commission of Environmental Quality (TCEQ) dredging and water quality requirements. Results of review will guide design of proposed project. - Develop a preliminary-level opinion of probable project cost for maintenance dredging and beach nourishment. - Results of the items described above will be summarized in a 30% Preliminary Design Memorandum. This memorandum will be submitted in draft format for review by the City. Once HDR has received the City’s review comments, the memorandum will be updated and a final version will be provided to the City. - HDR will meet with the City to review the results and recommendations presented in the 30% Preliminary Design Memorandum, and review the goals, objectives, and schedule for final design. Task 2: USACE Regulatory Coordination (Time and Materials) HDR will perform the following services related to environmental and regulatory permitting for this project: Task 2.1: Dredging and Beach Nourishment Permit Under a previous contract with the City, HDR prepared a U.S. Army Corps of Engineers (USACE) Section 10/404 permit application for this project. The permit EXHIBIT A Page 2 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 3 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 application is still under review by USACE. HDR will provide continued coordination with USACE in an attempt to receive an executed permit for this project. Task 2.2: Beach Maintenance Permit HDR assisted the City with obtaining authorization from USACE in 2008 to conduct beach maintenance activities along 21 miles of beach located on Mustang and North Padre Islands. Beach maintenance was authorized under Department of Army (DA) Individual Permit SWG-2006-00647, which had an expiration of December 31, 2014. As part of formal Section 7 consultation with USFWS, the 2008 permit included the following conservation measures: Attachment A – Provisions for Sea Turtle and Piping Plover Monitoring and Attachment B – Habitat Monitoring Effort. Prior to expiration of the IP, HDR assisted the City with amending the permit to remove the Habitat Monitoring Effort (Attachment B) based on results from five years of monitoring and obtaining an Extension of Time (EOT) for beach maintenance activities to occur until December 31, 2020. Due to the regulatory process and concerns from the natural resources agencies regarding threatened and endangered species within the project area, approval of the previous amendment and the EOT took approximately two years. It is HDR’s understanding that the City would like to request an EOT for the current beach maintenance activities for another five (5) years, clarify the extent of beach maintenance conducted by the City and biological monitoring requirements, and amend the permit to include the redistribution of accumulated sand to eroded areas where the beach width has been reduced, as described below.  Based on discussions with the City, maintenance activities occur within an approximate 8-mile stretch of beach between Marker 254 and Marker 236, Access Road 4 and Newport Access Road, and Marker 103 and Marker 62. The remaining beach areas included in the current permit are maintained by the County.  The City would like to amend the permit to reflect the correct beach maintenance extents. In addition, the City would like to amend Attachment A of the existing permit to include only yearly training courses (Item 1) of the Piping Plover Section and remove Items 2 and 3. Because Attachment B was removed from the existing permit during the previous amendment and EOT dated February 13, 2015, the requirements detailed in Items 2 and 3 are no longer applicable.  The redistribution of sand would occur along an approximate 5-mile stretch of beach between the placement areas referred to as the “Packery Channel Footprint” or “PA-4N” and “PA-4S” in the Environmental Impact Statement for Packery Channel; this area extends from approximately Viento Del Mar to Newport Pass. The proposed work includes repositioning sand that is routinely maintained in areas above the mean tide line to areas that have been eroded. Sand would be removed from areas located between the toe of the dune and the mean tide line and placed below the mean tide line to nourish the beach seaward of the existing dune and seawall. The proposed sand reposition could result in an increased beach width of up to 300 feet. EXHIBIT A Page 3 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 4 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Due to the amount of time available before the existing beach maintenance permit expires, it is HDR’s opinion that USACE would not currently grant an EOT for the existing beach maintenance permit. However, it is HDR’s professional opinion that an amendment of the permit to address the bulleted items listed above could be authorized prior to expiration of the existing permit on December 31, 2020. Therefore, HDR recommends the City submit an amendment request for the current permit without an EOT request. Upon receipt of the amended permit, if USACE did not include an EOT with the amended permit, the City can request an EOT to allow the amended beach maintenance activities through December 31, 2025. If the City has not received authorization of the amendment within 60-days of the current permit expiration (December 31, 2020), a separate EOT request specifically requesting a 5- year extension of the existing permit should be submitted by November 1, 2020. This EOT will allow the City to continue their current beach maintenance activities while the permit amendment request is pending. To develop the permit amendment and EOT requests, HDR proposes to conduct the following services: 2.2.1 Desktop Review: The City will provide HDR with annual monitoring reports that were compiled for sea turtles and piping plovers, and annual summary reports that were submitted to USACE Corpus Christi Regulatory Field Office by February 1 of each year, as required under the special conditions outlined in DA permit SWG-2006-00647. HDR will review these reports as well as other existing information to make a determination on the extent of field investigation that will be required to develop the permit amendments. A summary of the desktop review will be provided to the City in a Desktop Review Memorandum. 2.2.2 Formal Coordination with USACE and USFWS: The previous permit SWG-2006-00647 included development of a Biological Assessment (BA) and a Final Biological and Conference Opinion (BCO) as part of formal Section 7 consultations with the U.S. Fish and Wildlife Service (USFWS). HDR anticipates an updated BA will be required for the permit amendments due to changes in federal regulations, including the listing of red knots (Calidris canutus) as threatened under the Endangered Species Act of 1973, and modification of beach maintenance activities to include the redistribution of sand alongshore. HDR will initiate formal consultation with USACE and USFWS to clarify the proposed beach maintenance activities and amendment of Attachment A to include only Item 1 in the Piping Plover Section. 2.2.3 Field Investigations: Assuming site conditions have remained relatively constant for the entire 21-mile stretch of beach to be maintained by the City, HDR environmental staff will perform a site visit within the Packery Channel Footprint (Viento Del Mar to Newport Pass) area to review current site conditions. The area to be investigated depends on findings from Tasks 2.2.1 and 2.2.2. HDR will also note items that may require regulatory coordination and documentation as part of a BA. HDR will walk the beach from either end of the Packery Channel Footprint area to EXHIBIT A Page 4 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 5 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 survey for jurisdictional areas and potential protected species habitat. A summary of the site visit and associated recommendations for regulatory services will be provided in a Site Visit Memorandum. A site visit for the Packery Channel Footprint area will require two HDR environmental staff and will be completed in one day. State coastal boundary delineation or other surveying of the beach and vegetation line are not included. 2.2.4 Regulatory Assistance for Permit Amendments: HDR will assist the City with obtaining authorization for permit amendments to SWG-2006-00647 to allow alongshore redistribution of sand throughout the Packery Channel Footprint area to areas below the mean tide line, clarify the extent of beach maintenance conducted by the City, and amend Attachment A to remove Items 2 and 3 of the Piping Plover Section. The following subtasks are proposed: Joint Evaluation Meeting HDR will schedule a joint evaluation meeting (JEM) at either the USACE Corpus Christi Regulatory Field Office or The Texas General Land Office Coastal Field Operations/Permit Service Center Office. Two representatives from HDR will attend the JEM. HDR will provide hard copies of the original and amended DA permit SWG-2006-00647, a summary of current site conditions from subtask 2.2.3, and an aerial photograph of the proposed Packery Channel Footprint area to aid in project discussions at the JEM. After the JEM, HDR will provide notes to be distributed to the JEM attendees. Permit Amendment Request Several activities are required to develop the permit amendment request. The following items will be compiled into a single USACE permit amendment request:  Project summary and coordination cover letter to USACE Corpus Christi Regulatory Field Office (CCRFO)  USACE ENG Form 4345  Previous DA permit SWG-2006-00647and EOT (Dated 02/13/2015)  TCEQ Water Quality Certification (Tier II)  CMP Consistency Review Form  Protected Species Evaluation – HDR assumes the previous Biological Assessment would need to be updated  Wetland Delineation Report  Cultural/Historical Resources Evaluation  Mitigation/Evaluation Plan  Alternatives Evaluation EXHIBIT A Page 5 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 6 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Update Beach Maintenance Plan The City’s current beach maintenance activities allow beach roadway sand and seaweed to be placed above the Annual High Tide (A.H.T) line and immediately in front of the dunes between April and November. From November to April, the sand placed above the A.H.T. can be redistributed across the beach, but that redistribution is limited to the area immediately seaward of its location. As a result, sand that may be placed above the A.H.T. during beach roadway maintenance practices within an accreting area of the beach cannot be transported alongshore to another section of the beach that is eroding. The redistribution of sand alongshore to beach areas that are eroding would improve beach conditions and provide more effective coastal protection. As part of the permit amendment, HDR will provide coastal analyses to assist the City in developing a more detailed long-term beach maintenance plan to help maintain beach width. Having an updated beach maintenance plan will also help expedite agency coordination during the permitting process. The plan will contain recommendations for periodic small-scale back passing of accumulated sand to eroded areas within the project footprint, including how, when, and where sand is relocated. Agency Coordination As part of the permit amendment process, the project will be put on a 30- day Public Notice. Our experience is that there may be substantial agency and public comments in response to the Public Notice, which will require responses provided by the applicant to USACE. We anticipate that the existing BA will need to be updated to reflect recent listing of the red knot as a threatened species protected under Section 7 of the Endangered Species Act. HDR will update the BA for Section 7 consultation through USACE. HDR assumes the previously amended permit conditions authorized in a letter dated February 13, 2015 will remain in full force and effect, with the exception of the addition of red knots to Attachment A. HDR will continue to coordinate with the agencies through the Section 7 consultation process and be responsive to requests regarding the existing avoidance and minimization measures in effect by SWG-2006- 00647. Based on our recent permitting experience, HDR assumes that Texas Parks and Wildlife Department (TPWD), the Texas Commission of Environmental Quality, and the Environmental Protection Agency will have substantial comments to the Public Notice. Additional coordination with TPWD, TCEQ, and the EPA is included in our scope estimate. However, HDR assumes that no additional site visits will be requested with agency representatives. The timing and outcome of the permitting process is highly dependent on the availability and responsiveness of USACE and the resource agencies. Based on our experience, USACE may require the proposed activity be authorized under a new Individual Permit instead of authorizing a permit amendment. However, the level of EXHIBIT A Page 6 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 7 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 effort would not change as described in this task if USACE issues a new permit instead of an amendment to the existing one. 2.2.5 Extension of Time: If the newly submitted permit amendment request is not approved within 60 days of the expiration of the existing permit, HDR will assist the City with obtaining an EOT for the existing permit. The EOT will request authorization for the City to conduct the existing beach maintenance activities until 2025 while the permit amendment request is pending. Note that the services described under this sub-task will only be performed if authorized by the City. The following subtasks are proposed: Extension of Time Request The following items will be compiled into a single USACE EOT application:  Project summary and coordination cover letter to USACE CCRFO  USACE ENG Form 4345  Existing permit SWG-2006-00647 dated February 13, 2015 USACE Coordination HDR assumes the USACE can authorize the EOT request for the existing permit as an administrative amendment. HDR assumes the previously amended BA included in subtask 2.2.4 and the existing permit conditions will suffice for Section 7 consultation through USACE for the EOT. HDR assumes that no additional site visits will be requested with agency representatives or from the City. If additional information or coordination is required for authorization of an EOT for the existing permit, HDR will provide additional regulatory services under a separate scope and fee. Task 3 – Final Design Based on the City’s review and feedback on HDR’s 30% Preliminary Design Memorandum prepared under Task 1, HDR will perform detailed engineering analyses and final design for channel maintenance dredging along up to 3.5 miles of Packery Channel from the Gulf Intracoastal Waterway to the Gulf of Mexico. The actual dredging limits will be based on monitoring surveys performed by the City, sand quality, project budget, and other factors. Project design will include beach nourishment as the placement location for beach-quality sand extracted from the channel during the maintenance dredging. The beach nourishment design will be limited to material dredged from Packery channel; material obtained from other sources is not included. The beach nourishment location will be limited to the northern portion of the Padre Island seawall and/or the general vicinity of Whitecap Boulevard. If bathymetric monitoring surveys and sediment sampling/testing performed by the City indicate that portions of the channel containing non-beach-quality material are in need of dredging, an EXHIBIT A Page 7 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 8 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 alternative placement area will be required. In this event, HDR will provide additional design and regulatory services as described under Task 6 (Additional Services). Tasks that will be performed by HDR to advance the project through final design consist of the following:  HDR will prepare Procurement Documents (plans and specifications) for use by the City in soliciting bids from prospective construction contractors. The Procurement Documents will include technical specifications; construction drawings; supporting appendices (including USACE permit(s) and geotechnical data); general and special provisions; a proposal form; and other standard contract forms provided by the City. HDR will prepare 60%, 100% (Pre-Final), and Final (Signed/Sealed) design submittals. For the 60% design submittal, HDR will provide preliminary drawings and a Table of Contents for the proposed technical specifications. For the 100% and Final design submittals, HDR will provide drawings and Proposal Packages for the City for interim and final review. A Project Checklist, Drawings Review Checklist, and Plan Executive Summary will be included with each submittal. The following sheets are estimated for the final plan set: 1) Cover Sheet 23) Placement Area (Beach Nour) 2) General Notes and Legend 24) Typical Sections and Details 3) Overall Existing Site Plan and Key Map 25) Typical Sections and Details 4) Enlarged Existing Site Plan 1 26) Typical Sections and Details 5) Enlarged Existing Site Plan 2 27) Dredging Cross Sections 1 6) Enlarged Existing Site Plan 3 28) Dredging Cross Sections 2 7) Enlarged Existing Site Plan 4 29) Dredging Cross Sections 3 8) Enlarged Existing Site Plan 5 30) Dredging Cross Sections 4 9) Enlarged Existing Site Plan 6 31) Dredging Cross Sections 5 10) Enlarged Existing Site Plan 7 32) Dredging Cross Sections 6 11) Enlarged Existing Site Plan 8 33) Dredging Cross Sections 7 12) Placement Area – Existing Conditions 34) Dredging Cross Sections 8 13) Placement Area – Existing Conditions 35) Dredging Cross Sections 9 14) Dredging Plan 1 36) Dredging Cross Sections 10 15) Dredging Plan 2 37) Dredging Cross Sections 12 16) Dredging Plan 3 38) Dredging Cross Sections 13 17) Dredging Plan 4 39) Dredging Cross Sections 14 18) Dredging Plan 5 40) Dredging Cross Sections 15 19) Dredging Plan 6 41) Dredging Cross Sections 16 20) Dredging Plan 7 42) Dredging Cross Sections 17 21) Dredging Plan 8 43) Dredging Cross Sections 18 22) Placement Area (Beach Nour) 44) Dredging Cross Sections 18  HDR will coordinate with the City during the various review stages and provide clarifications as required. Note that the 100% Procurement Documents submittal will serve as a final review package; it will not be signed and sealed by a professional engineer until after the City’s final review comments have been incorporated.  With each (60%, 100%, and Final) Procurement Documents submittal, HDR will provide an opinion of probable construction cost (OPCC) that reflects the scope of construction. Developing the OPCC will include researching current market conditions for the EXHIBIT A Page 8 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 9 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 anticipated methods and timing of construction, and coordination with the City on project budget.  HDR will participate in the following meetings under Task 2: - 60% Design Submittal Meeting - 100% Design Submittal Meeting Task 4: Bidding-Phase Services This task includes supporting the City during the bidding phase of the project. HDR’s services under this task include the following:  Participate in a pre-bid conference with prospective construction contractors and City staff. HDR will facilitate technical discussion and provide meeting notes to City. HDR will respond to questions asked during the pre-bid conference by preparing necessary changes to the plans and specifications.  Support the City’s solicitation process by assisting with the issuance of addenda and providing answers to technical questions from prospective contractors regarding the bid documents.  Attend bid opening, review bid tabulation, and assist City in evaluating the qualifications of the prospective contractors, subcontractors, and suppliers.  Prepare Letter of Recommendation for qualified low bidder. Task 5: Construction Administration Services (Time and Materials) This task includes construction administration and observation activities to review the status of construction and the construction contractor’s (Contractor’s) general compliance with the Contract Documents and design intent. The services under this task will include the following:  Participate in a Pre-Construction Conference (PCC) with the City, the City’s designated resident project representative (RPR), and selected Contractor.  HDR has assumed general construction administration services will be required for up to 28 weeks (approximately 7 months). This task includes general construction administration including responding to RFI’s, and issuing Engineer’s Supplemental Instruction (ESI) and Work Change Directives (i.e., Engineer’s Clarification-Interpretation) in accordance with the City’s established process, as defined in the Contract Documents.  HDR will review and process Contractor’s submittals as may be required by the Contract Documents, including the Contractor’s initial Schedule of Values and proposed construction schedule. HDR will also prepare a monthly submittal log to help track status of required submittals.  HDR will review and process Contractor’s construction surveys as may be required by the Contract Documents.  HDR’s project manager or project engineer will travel to the project site approximately once per month, plus perform five additional site visits, for a total of 12 site visits during active EXHIBIT A Page 9 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 10 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 construction (the duration of “active construction” is assumed to be 7 months). Seven (7) of these trips (or one per month) will be for combined site visits and routine construction progress meetings with Contractor, RPR, and the City. The remaining five trips will be for stand-alone site visits. During site visits, HDR will observe general status of work and assist RPR with monitoring the general progress of the construction activities. HDR will prepare a site visit report for each site visit and minutes for each of the construction progress meetings.  Upon substantial completion of construction, HDR will visit the site, perform a substantial completion inspection with the RPR and the City, and issue a punch list for any remaining work items. Following the contractor’s completion of the punch list items, HDR will perform a final inspection with the RPR and the City. HDR will issue site visit reports for both inspections and prepare a Certificate of Substantial Completion and a Certificate of Final Completion for signature by HDR, Contractor, and the City.  Upon completion of construction, HDR will obtain and review the “red-line” drawings prepared by Contractor and the City’s RPR. This information will then be applied by HDR to develop record drawings. The record drawings will be provided to the City in AutoCAD and PDF format. HDR will also prepare a Close Out Project Summary which will summarize all Change Orders issued by the City, including cause and cost. Task 6: Additional Services Services described under Task 6 will not be performed unless requested in writing (or via email) by the City. 6.1 Design Investigation for Alternative DMPA (NIC) As described under Task 3, only beach-quality sand will be considered for placement as beach nourishment. In the event that a dredged material placement area (DMPA) is required for non-beach-quality sediment, HDR will provide additional services to assist the City with identification of an alternative placement location. Conceptual-level analysis will be performed to determine DMPA capacity and size requirements; USACE permitting requirements; environmental constraints; constructability considerations; an opinion of probable construction cost; and potential fees for detailed design and regulatory services. Field data collection such as topographic/bathymetric surveys, utility investigations, geotechnical investigations, and formal environmental delineations will not be included. Results of the alternative DMPA investigation will be included in the Preliminary Design technical memorandum under Task 1. This task does not include detailed design or USACE permitting. If the City elects to proceed to detailed design and/or permitting for the alternative DMPA, these additional services would be provided under a separate scope and fee. 6.2 Warranty Phase Services (NIC) If requested by the City, HDR will visit the site towards the end of the Contractor’s one-year warranty period and perform a warranty inspection for the project. HDR will note defects requiring Contractor action to maintain, repair, fix, restore, patch, or replace completed work under the maintenance guarantee terms of the contract. HDR’s observations and recommendations will be documented in a warranty inspection report including the locations and conditions requiring action, and ground photographs of the observed project features. EXHIBIT A Page 10 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 11 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 6.3 Assistance with Meetings and Presentations (Time and Materials) HDR proposes to provide the following services for assistance with up to four meetings: - Participate in up to three pre-meetings at City Hall for preparation with City staff prior to scheduled meetings with other project stakeholders such as the Island Strategic Action Committee, the Watershore and Beach Advisory Committee, the Texas General Land Office, or City Council. - Prepare up to three PowerPoint presentations. - Attend and, if requested by City, provide presentations at up to three meetings to be held in Corpus Christi. ASSUMPTIONS AND LIMITATIONS HDR’s proposal for these services and fee are based on the following assumptions and limitations:  As explained under Task 6, this scope does not include detailed design or USACE permit coordination for placement of non-beach quality material for habitat creation or placement into an upland dredged material placement area.  A TxGLO lease will not be required for the beach nourishment.  Review and/or analysis of potential foundation and structural impacts from previous or ongoing scour at the SH361 bridge is not included.  This scope does not include recommendations, design, or U.S. Coast Guard coordination for replacement or upgrades to aids to navigation or other channel markers.  This scope does not include surveying. Design-quality survey data will be provided to HDR by the City in AutoCAD or ASCII x,y,z format.  This scope does not include a geotechnical investigation, sediment sampling, or sediment chemical analysis. Sediment sampling and chemical analysis will be performed by a third party under direct contract with the City. Results and data interpretation will be provided by City’s third-party consultant.  This scope does not include Texas Department of Licensing and Registration (TDLR) coordination or review.  Except as described under Task 6.3, this scope does not include participation in meetings or presentations to City Council or other entities such as the Federal Emergency Management Agency (FEMA), the Watershore and Beach Advisory EXHIBIT A Page 11 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 12 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Committee, the Texas General Land Office, or the Island Strategic Action Committee (ISAC).  Identification of existing utilities will be based on information provided by the City and previous design drawings prepared by USACE. A subsurface utility investigation is not included as part of this scope.  HDR has not budgeted for development of a formal design calculations summary package. If a design calculations package is desired by the City, this information can be prepared by HDR through a contract amendment.  The OPCC will be developed on the basi s of HDR’s experience and qualifications, and will represent our judgment as experienced and qualified professional engineers generally familiar with this industry. However, because HDR has no control over the costs of labor, materials, equipment, or services furnished by others, or over the contractor’s methods of determining prices, or over competitive bidding and market conditions, HDR cannot and does not guarantee that proposals, bids, or actual project costs will match our OPCC. If the City desires greater assurance on probable construction costs, consideration should be given to retaining an independent cost estimator.  The City will distribute Procurement Documents (construction bid packages) to prospective contractors and coordinate with commercial plan rooms.  City’s construction department will review and process construction contractor’s pay requests (invoices), and issue/process any needed construction change orders, without review or assistance from HDR.  In the event the lowest responsible bidder’s bid exceeds the City’s project budget, HDR will confer with City staff on any desired revisions to the bid documents, and will then negotiate a contract amendment for implementation of these revisions and associated re-bidding.  The timing and outcome of the permitting process is highly dependent on the availability and responsiveness of USACE and resource agencies. Both the City and HDR agree that the permits may ultimately not be issued, and the City agrees to pay HDR for applicable services provided regardless of the permitting outcome.  Task 6.2 (Warranty Phase Services) does not include underwater or forensic inspections. HDR’s inspection will be limited to above-water and above-ground features that can be readily observed during a site walk-through. HDR’s warranty- phase services do not include communications and/or negotiations with the Contractor; engineering design; surveying; permitting; aerial photography; or construction observation of any corrective measures required after the warranty inspection. EXHIBIT A Page 12 of 15 Mr. Jeff Edmonds MCN 10118494 September 23, 2019 Page 13 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 FEE, DELIVERABLES, AND SCHEDULE HDR proposes to provide these services for a fee of $392,736 as shown in the table below. Except where noted above, all tasks will be performed on a Lump Sum basis. Tasks 2, 5, and 6.3 (USACE Regulatory Coordination, Construction Administration Services, and Assistance with Presentations and Meetings) will be performed on a Time and Materials basis in accordance with the rates listed in the attached rate schedule. The staff listed in this table will be supported by other HDR staff as needed. HDR will invoice for other staff at direct salary times a multiplier of 3.43, plus direct expenses. Please note that HDR’s rates are subject to revision in January of each year. Any work outside the proposed Scope will be added, with authorization from the City, through a formal Scope Change Document and associated fee agreement. This proposal is valid for 45 days from the date of this letter. EXHIBIT A Page 13 of 15 Mr. Jeff Edmonds MCN 10118494 September 20, 2019 Page 14 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Task Deliverables Approximate Schedule Fee 1. 30% Preliminary Design - Project Kickoff Meeting Notes - Site Visit / Photographs and Notes - 30% Preliminary Design Memorandum (Draft) - 30% Preliminary Design Memorandum (Final) - Draft Memo: 16 weeks from NTP - Final Memo: 3 weeks from receipt of City’s review comments $52,445 (Lump Sum) 2. USACE Regulatory Coordination Electronic copies (PDF) of the following deliverables will be provided under Task 2.2 for the Beach Maintenance Permit: - Draft JEM materials (exhibits) and mtg notes for City review. - Draft permit amendment, BA, and EOT request for City review. - Comment response matrix for agency comments on permit amendment request. - Draft response letters and material to address agency requests. - Draft Beach Maintenance Plan. Two hard copies and an electronic copy (PDF) of the following deliverables will be provided under Task 2.2: - Final Exhibits for JEM. - Permit amendment, BA, and EOT request for USACE submittal. - Final response letters and materials provided in response to agency comments on permit amendment request. - Final Beach Maintenance Plan. - JEM : 60 days from NTP - Draft App: 90 days from NTP - Final App: 120 days from NTP Task 2.1: $8,919 (T&M) Task 2.2: $80,167 (T&M) 3. Final Design Two hard copies and an electronic copy (PDF) will be provided for all of the following deliverables under Task 3: - 60% Submittal: Drawings, specifications table of contents, and OPCC. - 100% (Pre-Final) Submittal: Drawings, specifications, and OPCC at the Pre-Final stage. The drawings and specifications (including City- provided front end documents) will be included. The OPCC will be in the format of the Bid Tabulation. - Final Submittal: One 22”x34” (or 11”x17”) unbound set of hard copy drawings, 8½”x11” unbound set of technical specifications and front- end documents, and bid form of the ISSUED FOR BIDS set, suitable for reproduction. - 60% Submittal: 6 mos from NTP - 100% Submittal: 8 mos from NTP - Final Submittal: 9 mos from NTP (dependent on USACE Permit timeline) $186,325 (Lump Sum) 4. Bidding-Phase Services One digital copy in PDF format of the following: - Meeting notes from pre-bid conference; - Addenda and/or responses to questions required during the bidding phase. - Recommendation for Award. Schedule is dependent on City. Award recommendation letter will be provided within 14 days of HDR’s receipt of bid results. $9,178 (Lump Sum) 5. Construction Administration Services One digital copy in PDF format of the following: - Meeting notes from construction progress meetings; - RFI’s, Work Change Directives, and/or Change Orders required during construction; - Monthly Submittal Log; - Site Visit Reports; - Substantial Completion Certificate and Punch List; - Final Completion Certificate; - Record Drawings (record drawings will also be provided in AutoCAD format). - Close-Out Project Summary Schedule dependent on construction contract. Duration of active construction assumed to be 7 mos. Record drawings will be provided within 30 days of construction contract completion date. $44,932 (T&M) 6. Additional Services 6.1 Design Investigation for Alt DMPA: (NIC) 6.2 Warranty Phase Services: (NIC) 6.3 Assistance with Presentations and Meetings: Meeting handouts in PowerPoint or PDF format. - Task 6.1: (NIC) - Task 6.2: (NIC) - Task 6.3: Within 15 days of City’s request to perform task. 6.1: (NIC) 6.2: (NIC) 6.3: $10,770 (T&M) Total Proposed Fee: $392,736 Notes: 1. Actual schedule for all deliverables is dependent on HDR’s receipt of review comments and other needed feedback from City. HDR has assumed three weeks for City review of deliverables. 2. Tasks designated as “NIC” are not in contract. EXHIBIT A Page 14 of 15 Mr. Jeff Edmonds MCN 10037592 September 23, 2019 Page 15 hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 Thank you again for considering us for this project. Please do not hesitate to contact Dan Heilman at 361-696-3344 if you have questions or require any additional information. Sincerely, HDR ENGINEERING, INC. Daniel J. Heilman, P.E. Arthur B. Colwell, P.E. Project Manager Managing Principal Vice President Cc: Sarah West, P.E., City of Corpus Christi Attachments: Manhour and Expense Estimate (Dated 9/23/2019) HDR Rate Schedule (Dated 9/23/2019) EXHIBIT A Page 15 of 15 HDR Engineering, Inc. Rate Schedule for Professional Services to the City of Corpus Christi for Packery Channel Dredging and Beach Nourishment (19046A) Project Name & Classification Rate, $/hr Engineer VIII (Project Manager) 264 Engineer VII (QC Lead) 242 Environmental Manager 216 Sr Environmental Scientist 144 Archeologist 174 Engineer III (Coastal Engineer) 122 Environmental Biologist 82 Technician III (CAD) 149 Technician III (GIS) 123 Technician I (Accounting) 88 Technician I (Administrative) 72 EXHIBIT A-1 Page 1 of 1 Basic Services:Original Contract Total Contract 1.Preliminary Design $52,445.00 $52,445.00 2.Design Phase $186,325.00 $186,325.00 3.Bid Phase $9,178.00 $9,178.00 4.Construction Administration Phase (T&M)$44,932.00 $44,932.00 Subtotal Basic Services Fees $292,880.00 $292,880.00 Additional Services: 1.Permit Preparation $0.00 $0.00 2.ROW Acquisition Survey $0.00 $0.00 3.Topographic Survey and Parcel Descriptions $0.00 $0.00 4.Environmental Issues (Time & Materials)$89,086.00 $89,086.00 5.Public Involvement $0.00 $0.00 6.Subsurface Utility Investigation $0.00 $0.00 7.Design Investigation for Alternative DMPA $0.00 $0.00 8.Warranty Phase $0.00 $0.00 9.Assistance with Presentations and Meetings (T&M)$10,770.00 $10,770.00 Subtotal Additional Services $99,856.00 $99,856.00 Summary of Fees Basic Services Fees $292,880.00 $292,880.00 Additional Services Fees $99,856.00 $99,856.00 Total Authorized Fees $392,736.00 $392,736.00 Council Approval Pending PACKERY CHANNEL DREDGING AND BEACH NOURISHMENT PROJECT NO. 19046A SUMMARY OF FEES EXHIBIT A-2 Page 1 of 1 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit BPage 1 of 1 Project No.: Various 1 PM: MB,IP Legistar No.: 20-0017 Rev.5 – 1/03/20 DATE: December 24, 2019 TO: Peter Zanoni, City Manager FROM: 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 awarding eight Master Services Agreements (MSAs) for Bond 2020 and FY 2021 CIP feasibility studies in an amount not to exceed $3,600,000; three MSAs in the amount of $650,000 each to Freese and Nichols, HDR Engineering, and Urban Engineering for Street projects; two MSAs in the amount of $500,000 and $250,000 to Urban Engineering and LAN respectively for Utility Projects; and three MSAs in the amount of $300,000 each to Bath Engineering, LNV Inc. and Hanson Professional Services for Facility Projects, located city wide with funding available from Street Bond 2014 and FY 2020 Utility CIP; and amending the FY 2020 Capital Budget. SUMMARY: The planning cycle is getting underway for Bond 2020 and the FY 2021 Capital Improvement Program (CIP). These master service agreements will provide the preliminary engineering services necessary to provide accurate scopes and cost estimates for the proposed Bond 2020 and FY 2021 updates to the CIP. This item approves eight separate MSAs for Streets, Utilities, Facilities and Parks projects. Task orders will be negotiated individually to provide scoping, preliminary engineering and cost estimating services. BACKGROUND AND FINDINGS: Preliminary feasibility studies, engineering reports and cost estimates are required for projects when preparing for a Bond referendum or future CIP program. A similar process was used to prepare for Bond 2018. A Master Services Agreement (MSA) is a type of contract where work is accomplished through multiple task orders (TOs) under a blanket set of terms & conditions. These MSAs will issue time and material TOs based on an hourly rate schedule. MSAs are an efficient method to procure and expedite the specified professional services, which reduces overhead and administrative effort. MSAs are limited by the stipulated contract terms. AGENDA MEMORANDUM First Reading for the City Council Meeting of January 21, 2020 Second Reading for the City Council Meeting of January 28, 2020 Master Services Agreements Preliminary Engineering and Feasibility Studies for Bond 2020 and Future Utility CIP Project No.: Various 2 PM: MB,IP Legistar No.: 20-0017 Rev.5 – 1/03/20 PROJECT TIMELINE: J F M A M J TO BE DETERMINED Design/Construction 2020 Assessment COMPETITIVE SOLICITATION PROCESS Freese and Nichols, HDR Engineering, Urban Engineering, LAN, Bath Engineering, LNV Inc and Hanson Professional Services were selected for the Bond 2020 preliminary engineering and feasibility studies under RFQ 2018-10. For the Street category, there were 10 respondents; for the Utility category, there were 9 respondents; and for the Public Facilities category there were 6 respondents. All respondents were interviewed and chosen based on their scores and abilities to successfully complete the work. The selection committee consisted of representatives from Asset Management, Streets, Utilities, and Engineering Services Departments. Firms were ranked based on five factors: 1) experience of the firm, 2) experience of the key personnel with specific experience, 3) project approach and management plan, 4) capacity to meet the project requirements and timelines, and 5) past performance. ALTERNATIVES: Not proceeding with the MSAs may reduce the accuracy of cost estimates that form the basis of a Bond 2020 program and the FY 2021 CIP. The Bond 2020 Informational Brochure needs to be finalized by June. Any action to delay these contracts can compromise the ability to have accurate scope and cost information in the informational brochure. FISCAL IMPACT: The projects in Bond 2020 program will be contingent on the findings in the feasibility studies. The proposed bond program outcome will be decided by city voters in November 2020. This item will award eight separate MSAs for professional services directly related to preliminary engineering and feasibility studies for Street Projects with Freese and Nichols, HDR Engineering, and Urban Engineering, for Utility Projects with Urban Engineering and LAN, and for Facility Projects with Bath Engineering, LNV Inc, and Hanson Professional Services, in all City Council Districts, in the total amount of $3,600,000 for Street projects, Utility projects, and Facility projects, effective upon issuance of Notice to Proceed. Funding is available from Street Bond 2014 reserves and FY 2020 Utility CIP. In 2014, the City issued tax notes to pre-design the Bond 2014 street projects. As a result, the funds budgeted for design work were freed up from bond proceeds; thus, allowing these funds to be used for other street projects. FUNDING DETAIL: Bond 2020 Street Feasibility Studies: Fund: Street 2015 GO Bond 2014 (Fund 3551) Mission Elem: Maintain Pavement (#051) Project No.: Bond 2020 Feasibility Studies (20245A) Account: Professional Services (Account #530000) Activity: 20245-A-3551-EXP Amount: $650,000 per contract (3) Project No.: Various 3 PM: MB,IP Legistar No.: 20-0017 Rev.5 – 1/03/20 Utility Feasibility Studies (Water and Wastewater): Fund: Water 2020 CIP (#4099) Mission Elem: Distribute Water (#041) Project No.: Water Feasibility Studies (20246A) Account: Professional Services (Account #530000) Activity: 20246-A-4099-EXP (Water) Amount: $250,000 Fund: Wastewater 2020 CIP (#4257) Mission Elem: Wastewater Collection System (#042) Project No.: Wastewater Feasibility Studies (20247A) Account: Professional Services (Account #530000) Activity: 20247-A-4257-EXP Amount: $500,000 Bond 2020 Facility and Parks Feasibility Studies: Fund: Street 2015 GO Bond 2014 (Fund 3551) Mission Elem: Maintain Pavement (#051) Project No.: Bond 2020 Feasibility Studies (20245A) Account: Professional Services (Account #530000) Activity: 20245-A-3551-EXP Amount: $300,000 per contract (3) RECOMMENDATION: Staff recommends approval of eight MSAs for professional services directly related to preliminary engineering and feasibility studies for Street Projects with Freese and Nichols, HDR Engineering, and Urban Engineering, for Utility projects with Urban Engineering and LAN, and Facility Projects with Bath Engineering, LNV Inc., and Hanson Professional Services, in all City Council Districts, in the total amount of $3,600,000 for proposed Streets projects, Utilities projects, and Facility projects. LIST OF SUPPORTING DOCUMENTS: Ordinance Location Map Master Services Agreement Freese and Nichols Master Services Agreement HDR Engineering Master Services Agreement Urban Engineering (2) Master Services Agreement LAN Master Services Agreement Bath Engineering Master Services Agreement Hanson Professional Services Master Services Agreement LNV, Inc. Ordinance awarding eight Master Services Agreements (MSAs) for Bond 2020 and FY 2021 CIP feasibility studies in an amount not to exceed $3,600,000; three MSAs in the amount of $650,000 each to Freese and Nichols, HDR Engineering, and Urban Engineering for Street projects; two MSAs in the amount of $500,000 and $250,000 to Urban Engineering and LAN respectively for Utility Projects; and three MSAs in the amount of $300,000 each to Bath Engineering, LNV Inc and Hanson Professional Services for Facility projects, located city- wide with funding available from Street Bond 2014 and FY 2020 Utility CIP; and amending the FY 2020 Capital Budget. WHEREAS, the City Council has expressed interest in a November 2020 General Obligation Bond Election; and WHEREAS, funding for the feasibility studies will come from existing Street Bond 2014 Reserves and Utility Capital Improvement Funds. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Fiscal Year 2020 Capital Improvement Program Budget adopted by Ordinance 031870 is amended to add the Bond 2020 Feasibility Studies for Streets, Parks, Facilities and the Utility 2020 Feasibility Studies for future capital program planning. SECTION 2. The City Manager or designee is authorized to execute e ight Master Services Agreements in an amount not to exceed $3,600,000; three MSAs in the amount of $650,000 each to Freese and Nichols, HDR Engineering, and Urban Engineering for Street projects; two MSAs in the amount of $500,000 and $250,000 to Urban Engineering and LAN respectively for Utility Projects; and three MSAs in the amount of $300,000 each to Bath Engineering, LNV Inc and Hanson Professional Services for Facility Projects. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 __________ 2020, 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 _________________, 2020. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 37 37 181 77 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES LOCATION MAP NOT TO SCALE CITYWIDE PROJECT N CITY WIDE MASTER SERVICES AGREEMENT FOR PRELIMINARY ENGINEERING AND FEASIBILITY STUDIES FOR BOND 2020 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES CITY WIDE MASTER SERVICES AGREEMENT FOR PRELIMINARY ENGINEERING AND FEASIBILITY STUDIES FOR BOND 2020 VICINITY MAP NOT TO SCALE CITYWIDE PROJECT Master Services Agreement Page 1 of 10 SERVICE AGREEMENT NO. 2779 MASTER SERVICES AGREEMENT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20120A – Bond 2020 Street Feasibility Studies The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and HDR Engineering, Inc., 555 N. Carancahua, Suite 1600, Corpus Christi, Nueces County, Texas 78401 (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I PROJECT TASK ORDER ..................................................................................... 2 ARTICLE II COMPENSATION ................................................................................................. 3 ARTICLE III QUALITY CONTROL PLAN ................................................................................. 4 ARTICLE IV INSURANCE REQUIREMENTS ........................................................................... 4 ARTICLE V INDEMNIFICATION .............................................................................................. 4 ARTICLE VI TERM; RENEWALS; TIMES FOR RENDERING SERVICE ................................. 4 ARTICLE VII TERMINATION OF AGREEMENT ....................................................................... 5 ARTICLE VIII RIGHT OF REVIEW AND AUDIT ......................................................................... 6 ARTICLE IX OWNER REMEDIES ............................................................................................ 6 ARTICLE X CONSULTANT REMEDIES .................................................................................. 7 ARTICLE XI CLAIMS AND DISPUTE RESOLUTION ............................................................... 7 ARTICLE XII MISCELLANEOUS PROVISIONS ........................................................................ 9 EXHIBITS Master Services Agreement Page 2 of 10 ARTICLE I – PROJECT TASK ORDER 1.1 This Agreement shall apply to as many tasks as City and Consultant agree will be performed under the terms and conditions of this Agreement. Each task Consultant performs for City hereunder shall be designated a Task Order. No Task Order shall be binding or enforceable unless and until it has been properly executed by both City and Consultant. Each properly executed Task Order as shown in Exhibit A shall become a separate supplemental agreement to this Agreement. 1.2 The Consultant shall provide its Scope of Services, to be included in each Task Order. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services which would normally be required by law or common due diligence in accordance with the standard of care defined in Article XII of this Agreement. 1.3 Under this Agreement, Consultant will provide services on a Task Order basis for a range of services related to assisting Engineering Services with professional engineering, architecture and construction services related to execution of Capital Improvements Programs. All work will be subject to authorization from City. A detailed Scope of Services and fee estimate will be developed for each task prior to execution of work. 1.4 Consultant shall follow City Codes and Standards effective at the time of the execution of individual Task Orders. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Task Order. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.5 Consultant must perform tasks and submit deliverables as detailed in each approved Task Order. 1.6 Consultant must provide all labor, equipment and transportation necessary to complete all services agreed to in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City with a list of all subconsultants that includes the services performed by the subconsultant and the percentage of work performed by the subconsultant. Changes in Consultant’s team that provides services under this Agreement must be agreed to by the City in writing. 1.7 Consultant must not begin work on any Task Order authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. 1.8 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in the City’s General Conditions for Construction Contracts, an excerpt of which is attached as an exhibit to this Agreement. 1.9 For projects that require subsurface utility investigation: 1.9.1 The Consultant agrees to prepare and submit to the City a signed and sealed report identifying all utilities within the project area at the Quality Level specified in the Task Order. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.9.2 Utilities that should be identified include, but are not limited to, City-owned utilities, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Master Services Agreement Page 3 of 10 ARTICLE II – COMPENSATION 2.1 The Compensation for all services included in this Agreement and in the Scope of Services for this Agreement shall not exceed $650,000.00. 2.2 The Consultant’s fee for each Task Order will be on a lump sum or time and materials (T&M) basis with a negotiated not-to-exceed amount. The fees will not exceed those identified and will be full and total compensation for all services outlined in each Task Order, and for all expenses incurred in performing these services. 2.3 Consultant shall submit a proposal to the City, which shall be incorporated into this agreement as Exhibit B, subject to approval by the City. 2.4 Consultant shall submit a Rate Schedule with their proposal. 2.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit C. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 2.5.1 Principals may only bill at the hourly rate of Principals when acting in that capacity. Principals acting in the capacity of staff must bill at staff rates. The Consultant shall provide documentation with each payment request that clearly indicates how that individual’s time is allocated and the justification for that allocation. 2.6 The anticipated fee structure under this agreement is as follows: DESCRIPTION NOT TO EXCEED AMOUNT Maximum Contract Amount $650,000.00 Task 1 – TBD TBD Task 2 – TBD TBD Task 3 – TBD TBD Task 4 – TBD TBD Task 5 – TBD TBD Task 6 – TBD TBD 2.7 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any Task Order or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures provided in this Agreement in a timely manner and as required by the terms thereof, any such claim shall be waived. 2.8 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 2.9 Any fee payable under this Agreement is subject to the availability of funds. The Consultant may be directed to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 2.5 above for services provided up to the date of suspension. Master Services Agreement Page 4 of 10 ARTICLE III – QUALITY CONTROL PLAN 3.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 3.2 The Consultant will perform QCP Reviews at intervals during the project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the project scope. Based on the findings of the QCP Review, the Consultant must reconcile the project scope and Opinion of Probable Cost (OPC) as needed. 3.3 Documents that do not meet City standards in effect at the time of the execution of a related Task Order may be rejected. If documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE IV – INSURANCE REQUIREMENTS 4.1 Consultant must not commence work under this Agreement until all required insurance has been obtained, and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 4.2 Insurance Requirements are shown in EXHIBIT D. ARTICLE V - INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VI – TERM; RENEWALS; TIMES FOR RENDERING SERVICE 6.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). Master Services Agreement Page 5 of 10 6.2 This Agreement shall be applicable to Task Order issued hereunder from the Effective Date of the Agreement until project is complete. 6.3 This service shall be for a period of two years beginning on the Effective Date. The Agreement may be renewed for up to _____ one-year renewal options upon mutual agreement of the parties to be evidenced in writing prior to the expiration date of the prior term. Any renewals shall be at the same terms and conditions, plus any approved changes. 6.4 The times for performing services or providing deliverables will be stated in each Task Order. If no times are so stated, Consultant will perform services and provide deliverables within a reasonable time. ARTICLE VII - TERMINATION OF AGREEMENT 7.1 By Consultant: 7.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 7.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 7.2 By City: 7.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 7.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 7.3 Termination Procedure 7.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 7.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Consultant shall mark partially completed work as “Draft” and does not guarantee the accuracy or reliability of partially completed work submitted in accordance with this Article. 7.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. Master Services Agreement Page 6 of 10 7.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE VIII – RIGHT OF REVIEW AND AUDIT 8.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 8.2 “Consultant’s records” include any and all information, materials and data of every kind and character generated as a result of the Work under this Agreement. Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, federal and state tax filings for issue in questions and any and all other agreements, sources of information and matters that may, in City’s judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 8.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s records only during City’s regular business hours. Upon reasonable prior notice, Consultant agrees to allow City’s designee access to all of Consultant’s records, Consultant’s facilities and Consultant’s current or former employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 8.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE IX – OWNER REMEDIES 9.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 9.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 9.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 9.1.3 Losses are incurred because of defects, errors and omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been defects, errors and omissions in the documents. 9.2 The City may assert a claim against the Consultant’s professional liability insurance as appropriate when other remedies are not available or offered for design deficiencies discovered during and after Project construction. Master Services Agreement Page 7 of 10 9.3 When the City incurs non-value added work costs for change orders due to design errors or omissions, the City will send the Consultant a letter that includes: (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 9.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 9.5 The City may withhold or nullify the whole or part of any payment as detailed in Article II. ARTICLE X – CONSULTANT REMEDIES 10.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 10.2 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XI – CLAIMS AND DISPUTE RESOLUTION 11.1 Filing of Claims 11.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 11.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 11.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 11.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Alternative Dispute Resolution. 11.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement and City shall continue to make payments in accordance with this Agreement. 11.2 Alternative Dispute Resolution 11.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and Master Services Agreement Page 8 of 10 settlement negotiations for purposes of applicable rules of evidence. 11.2.2 Before invoking mediation or any other alternative dispute resolution (ADR) process set forth herein, the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of any other ADR process. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation ADR process contained herein. 11.2.3 Mediation 11.2.3.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 11.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 11.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 11.2.3.4 The parties shall share the mediator’s fee. Venue for any mediation or lawsuit arising under this Agreement shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 11.3 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute in this Agreement. 11.4 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 11.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Master Services Agreement Page 9 of 10 ARTICLE XII – MISCELLANEOUS PROVISIONS 12.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 12.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans. 12.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent engineers or architects practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 12.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 12.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 12.6 Entire Agreement. This Agreement, including Task Orders, represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 12.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 12.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. 12.9 Certificate of Interested Parties. Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. Master Services Agreement Page 10 of 10 12.10 Conflict of Interest. Consultant agrees to comply with Chapter 176 of the Texas Local Government Code and file Form CIQ with the City Secretary’s Office, if required. For more information and to determine if you need to file a Form CIQ, please review the information on the City Secretary’s website at http://www.cctexas.com/government/city-secretary/conflict-disclosure/index 12.11 Boycott Israel. As required by Chapter 2270, Government Code, Consultant hereby verifies that it does not boycott Israel and will not boycott Israel through the term of this Agreement. For purposes of this verification, “boycott Israel” means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. 12.12 Controlling Law. This Agreement is governed by the laws of the State of Texas without regard to its conflicts of laws. Venue for legal proceedings lies exclusively in Nueces County, Texas. 12.13 Severability. If, for any reason, any one or more Articles and/or paragraphs of this Agreement are held invalid or unenforceable, such invalidity or unenforceability shall not affect, impair or invalidate the remaining Articles and/or paragraphs of this Agreement but shall be confined in its effect to the specific Article, sentences, clauses or parts of this Agreement held invalid or unenforceable, and the invalidity or unenforceability of any Article, sentence, clause or parts of this Agreement, in any one or more instance, shall not affect or prejudice in any way the validity of this Agreement in any other instance. 12.14 Conflict Resolution Between Documents. Consultant hereby agrees and acknowledges if anything contained in the Consultant-prepared Exhibit B, Scope of Services or in any other document prepared by Consultant and included herein, is in conflict with Articles I - XII of this Agreement (Articles) and/or an approved Task Order, the Articles and/or the Task Order shall take precedence and control to resolve said conflict. 12.15 Title VI Assurance. The Consultant shall prohibit discrimination in employment based upon race, color, religion, national origin, gender, disability or age. CITY OF CORPUS CHRISTI HDR ENGINEERING, INC. ________________________________ ________________________________ Mark Van Vleck (Date) Arthur B. Colwell, P.E. (Date) Assistant City Manager Vice President/Managing Principal 555 N. Carancahua, Suite 1600 Corpus Christi, TX 78401 (361) 696-3300 Office Arthur.colwell@hdrinc.com APPROVED AS TO LEGAL FORM ________________________________ Assistant City Attorney (Date) for City Attorney ATTEST _______________________________ Rebecca Huerta, City Secretary Funding shall be provided per task order. Contract Maximum Amount is $650,000. 12/30/19 EXHIBIT A SAMPLE TASK ORDER PAGE 1 OF 1 EXHIBIT A SAMPLE TASK ORDER This Task Order pertains to a Master Services Agreement for Professional Services by and between City of Corpus Christi, Texas (City) and “Company Name” (Consultant) dated _________________, 2019 (Agreement). Consultant shall perform services on the project described below as provided in this Task Order and in the Agreement. This Task Order shall not be binding until it has been properly signed by both parties. Upon execution, this Task Order shall supplement the Agreement as it pertains to the project described below. TASK ORDER NO.: PROJECT NAME: _______________________________ 1.PROJECT DESCRIPTION 2.SCOPE OF SERVICES 3.COMPENSATION This Task Order is approved and Consultant may proceed. All other terms and conditions of the Agreement remain in full force and effect. CITY OF CORPUS CHRISTI __________________________________ Jeff Edmonds, P.E. Date Director of Engineering Services COMPANY NAME, INC. ____________________________________ Authorized Signer Date Title Address City, State, Zip (xxx) xxx-xxxx name@email.com hdrinc.com 555 N. Carancahua, Suite 1600, Corpus Christi, TX 78401 Texas P.E. Firm Registration No. 754ion 361-696-3300 November 15, 2019 MCN 10199786 Mr. Jeff Edmonds, P.E. Director, Capital Programs City of Corpus Christi P.O. Box 9277 Corpus Christi, TX 78469-9277 RE: MASTER SERVICES AGREEMENT (MSA) FOR BOND 2020 STREET FEASIBILITY STUDIES Dear Mr. Edmonds: Thank you for inviting HDR to participate in supporting Engineering Services in the development of the Bond 2020 program. The work will be initiated with a Master Services Agreement and a series of Task Orders that will be negotiated on a T&M basis. Attachment A provides a structured outline which will be utilized for developing Street Feasibility Reports. A separate report will be developed for each Task Order, and each Task Order will be associated with a separate street project as assigned by Engineering Services. We understand that the total fee for all Task Orders will not exceed $650,000.00. As requested, we have attached our Schedule of Rates 1-20 (Attachment B). These rates are effective through December 31, 2020. Any work beyond that date will require the City and HDR negotiate a Change Order to the contract. Thank you again for considering us for this project. Please do not hesitate to contact Samuel Saldivar, Jr. at 361-696-3325 if you have questions or require any additional information. Sincerely, HDR ENGINEERING, INC. Samuel Saldivar, Jr., P.E. Arthur B. Colwell, P.E. Civil Program Leader Office Principal/Vice President Cc: Sarah West, P.E. Attachments: A – Street Feasibility (Bond 2020) Report Format Requirements B – Schedule of Rate 1-20 EXHIBIT B Page 1 of 8 Street Feasibility (Bond 2020) Report Format Requirements Prepare a Feasibility Report for each of the assigned projects. Each Street Project shall be bound individually and include the Project Title in the header. These reports should be very brief; use bullets and concise lists as much as possible. Include the following information in the order listed: I.Cover Sheet •Project Title •Photos – small, 2-3 images of pavement conditions specific to project •Submittal Date •Engineer’s Note/Seal (as required by TBPE 137.33) II.Executive Summary (1 to 2 pages; standalone document but bound in report after cover sheet) – The Executive Summary should be written with minimal technical references so the general public will understand what is stated. •Project Title •Submittal Date •Project Description (very brief explanation of existing conditions and proposed improvements; approximately 1-2 paragraph) •Opinion of Probable Cost Summary Table – include construction cost only •Estimated construction duration – assume $500k/mo. execution •Location Map – image of small City line map III.Table of Contents IV.Project Report –This should be written as if the Executive summary is not a part of the report. Items listed should not be duplicated between sections. 1.Project Description – This section can provide additional information to what is provided in Executive Summary and should still be brief. Include recommendation for including/excluding intersections at project limits. 2.Location Map - image of small City Line map 3.Existing Conditions and Proposed Improvements (Note: include information gathered in Project Evaluation Checklist.) 3.1. Street 3.1.1. Roadway 3.1.1.1. Existing •Approximate age of roadway •Street classification (C1, C2, A1, etc.) and description (2 lanes in each direction, one lane in each direction with a center turn lane, etc.; length in LF) •Roadway type (concrete/asphalt, curb & gutter or roadside ditches, etc.) •Existing ROW, pavement/B-B and lane widths EXHIBIT B Page 2 of 8 •Current PCI value (City staff will provide a spreadsheet with this information) •Development in the area (residential, commercial, industrial) and significant facilities (schools, fire stations, hospitals, etc.), not just within the project limits, that may be impacted 3.1.1.2. Proposed •Street classification (C1, C2, A1, etc.) and description (2 lanes in each direction, one lane in each direction with a center turn lane, etc.). Note if proposed classification meets or deviates from current UTP and requires plan amendment. •Proposed ROW, pavement/B-B and lane widths. Include recommendation for Land Acquisition based on proposed improvements if ROW is needed (beyond corner clips). Provide aerial with shading to indicate proposed ROW needed (Appendices) •Pavement type (general comments; conceptual pavement section and basis for both concrete and asphalt. Include considerations for only bidding one pavement option if applicable.) •Specify what is included in the street scope, intersections, turn lanes, access roads, etc. 3.1.2. ADA 3.1.2.1. Existing 3.1.2.2. Proposed 3.1.3. Traffic signals 3.1.3.1. Existing 3.1.3.2. Proposed 3.1.4. Street Illumination 3.1.4.1. Existing 3.1.4.2. Proposed 3.1.5. Bike Facilities 3.1.5.1. Existing 3.1.5.2. Proposed 3.1.6. RTA Facilities 3.1.6.1. Existing 3.1.6.2. Proposed 3.2. City Utilities (Note: section requirements shown under Storm Water, but all other Utilities should have same information) 3.2.1. Storm water 3.2.1.1. Existing •Size, type, age & location of utility as found in GIS & As-Builts EXHIBIT B Page 3 of 8 • Visual/site inspection to note City utilities in the area and verify general alignment/location of City utilities. • Summarize maintenance history for each system – coordinate directly with Utilities for maintenance reports, with reports provided in appendix. 3.2.1.2. Proposed • Size, type and location of proposed utility – brief description, use concise bullets as applicable • Basis for recommendation – based on maintenance issues and future projections/master plans, etc. (i.e. are there condition issues and/or capacity issues). o Brief summary of master plan  Include plan/design assumptions  Consideration for need and timing of ultimate buildout  Deviations and reasoning for not meeting ultimate buildout  Considerations for future connections (stub outs, etc.)  Include summary of any anticipated off-site improvements needed 3.2.2. Water 3.2.2.1. Existing 3.2.2.2. Proposed 3.2.3. Wastewater 3.2.3.1. Existing 3.2.3.2. Proposed 3.2.4. Gas 3.2.4.1. Existing 3.2.4.2. Proposed 3.3. Third Party Utilities (Note: section requirements shown under AT&T, but all other Third Party Utilities should have same information) 3.3.1. AT&T 3.3.1.1. Existing • Visual/site inspection to note third Party utilities in the area and verify general alignment/location of third party utilities. • Coordination with AT&T and AEP regrading location of their facilities. Include AT&T and AEP Information Request Form as appendix, along with results/response. • Location – proximity within ROW (example: 1’ off Right ROW) • Type – Aerial, underground, minor lines, major duct bank, etc. 3.3.1.2. Proposed • Summary of required relocations and potential conflicts based on proposed project improvements, provide map per appendix 3.3.2. AEP EXHIBIT B Page 4 of 8 3.3.2.1. Existing 3.3.2.2. Proposed 3.3.3. Others 3.3.3.1. Existing 3.3.3.2. Proposed 4. Agency/Permit Coordination Requirements 5. Engineer’s Recommendation for Improvements - Based on the Engineer’s review of the Project, site visits, maps, records, etc., provide any additional engineering observations or recommendations to discuss or consider for the proposed Project that would improve efficiency, save costs, reduce public impact, or provide a better end project and/or use of funds. Provide potential alternatives on this Project that could be considered if the budget comes up short from the OPCC during the future design phase. 6. Opinion of Probable Cost 6.1. Summary Table of construction costs divided between Streets, Storm Water, Water, Wastewater and Gas 6.2. Assumptions for Opinion of Probable Cost 7. Project Timetable/Schedule 7.1. Estimated design phase duration – include justification for proposed duration for City consideration 7.2. Estimated construction duration (assume $500k/mo). Include any considerations for longer or shorter time estimate for City consideration. Include list of assumptions. 7.3. Follow format provide below: Design Phase: XX months Construction Phase: XX months Considerations for shorter/longer design: • 1 • 2 • 3 Considerations for shorter/longer construction: a) 1 b) 2 c) 3 Appendices: Appendices must be tabbed for quick reference. A. Location and Vicinity Maps 1. Use attached file template (see examples) 2. 1 page each, 8.5” x 11” A.1 – Location Map A.2 – Vicinity Map (should have aerial background ) B. Strip Map 1. Project Title 2. North Arrow 3. Sized to 11” x XX” – fold out and bound with report EXHIBIT B Page 5 of 8 4. Aerial Photograph as Background 5. Relevant street names 6. Proposed street configuration 7. Proposed new alignment (if alignment changing) 8. New width 9. Lanes (show arrows for direction) 10. Sidewalks and bike facilities (if applicable) C. Cross sections including utilities - Existing and proposed on the same 8.5” x 11” page D. Adopted Bike plan page(s) – from attached plan E. Utility base maps (area maps, not strip maps) – include existing and proposed (mains and laterals, not service lines) in same map on single 11” x 17” sheet per utility. E.1 – Storm Water E.2 – Water E.3 – Wastewater E.4 – Gas F. Utility complaint/maintenance reports F.1 – Storm Water – include flood report map and maintenance reports F.2 – Water F.3 – Wastewater F.4 – Gas G. Strip map with third party relocations and potential conflicts highlighted – 11” x 17” H. Third Party Information Request Form, along with results/response H.1 – AT&T H.2 – AEP I. OPCC 1. Use current Bid Form (signature blocks can be eliminated). 2. Construction Costs Only; City will add other administrative project costs when establishing project budget 3. Include a 20% “Unidentified Work Items” line item for each section in the detailed breakdown – The 20% includes unknown design elements and pricing variability. 4. Do not include “allowances” or “contingencies”. 5. Include estimates for both pavement options. I.1 – Base Bid 1 – Asphalt I.2 – Base Bid 2 - Concrete J. Project Evaluation Checklist (template and example attached) K. Photo key map and photographs with descriptions (include key item(s) to note in photo) L. Utility Master Plan map pages L.1 – Storm Water L.2 – Water L.3 – Wastewater L.4 – Gas M. FEMA Map Pages EXHIBIT B Page 6 of 8 NOTE: if an element is not present on a project, do not skip the section. Include in the report that the element is not present/does not exist in the project limits. Also include recommendation (i.e. add or no improvements) Examples: • No curb ramps exist within the project limits. Recommendation includes adding ramps at all intersections. • No water distribution line exists within the project limits. • Recommendation includes adding an 8” water distribution line and fire hydrants to meet minimum fire coverage. • No wastewater collection lines exist within the project limits. • No wastewater improvements are recommended. All adjacent properties are currently connected to City wastewater via rear access to wastewater. Submittal Requirements: 1. 1 Draft Report (2 hard copy and 1 electronic) 2. 1 Final Report (1 hard copy and 1 electronic) EXHIBIT B Page 7 of 8 HDR Engineering, Inc. 555 N Carancahua Suite 1600 Corpus Christi, TX 78401-0850 No. 1-20 COCC SCHEDULE OF RATES These rates are effective through December 2020 PROFESSIONAL STAFF HOURLY RATE Engineer I…………………………….. $125.00 Engineer II……………………………. $137.00 Engineer III…………………………… $152.00 Engineer IV…………………………… $169.00 Engineer V……………………………. $184.00 Engineer VI…………………………… $205.00 Engineer VII………………………….. $226.00 Engineer VIII…………………………. $247.00 Principal Engineer……………………. $268.00 Sr. Principal Engineer………………… $288.00 Program Director………………...........$306.00 Project Biologist/GIS Specialist………$135.00 Environmental Biologist………………$159.00 Sr. Environmental Biologist…………..$184.00 Environmental Manager………………$209.00 PARA-PROFESSIONAL STAFF HOURLY RATE Administrative Assistant…………............. $92.00 Drafter…………………...…….…………… $95.00 Technician I…………………….………….. $109.00 Technician II………………………………. $121.00 Technician III……………………………… $134.00 Designer Tech IV………………………….. $146.00 EQUIPMENT/IT GPS RTK Survey Equipment………… .... 250.00/Day GPS Hand Held (Sub Meter)………… ..... 135.00/Day Work/Tow Vehicle .......... 65.00/day + IRS rate + 10% Survey Boat .............................................. 750.00/Day GPS Hydrographic Survey Equip .............. 250.00/Day Acoustic Doppler Velocimeter (ADV) ....1,000.00/Wk Water Level Logger………………… ........300.00/Wk EXPENSES Automobile (other than rental car) ..... IRS Rate + 10% In house reproduction ...... prevailing commercial rates Outside consultants ................. cost plus 15% handling Outside technical services....... cost plus 15% handling All other expenses .................. cost plus 15% handling 1. Charges are due and payable within thirty (30) days of receipt of the invoice. A charge of 1% per month will be added for late payments. 2. Construction administration staff will be billed at an equivalent grade, depending upon qualifications. 3. Unlisted scientists and other non-engineer professionals will be billed at the rate of a comparable engineer grade. 4. Overtime for para-professional and non-registered survey staff will be billed at 125% of the hourly rate and overtime will apply for hours worked in excess of 8 hours per day or 40 per week. 5. Time spent preparing for and providing depositions or courtroom testimony will be billed at 150% of the hourly rate. EXHIBIT B Page 8 of 8 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit CPage 1 of 1 1 Rev 09/19 EXHIBIT D Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. EXHIBIT “E” Page 1 of 2 SUPPLIER NUMBER __________ TO BE ASSIGNED BY CITY PURCHASING DIVISION CITY OF CORPUS CHRISTI DISCLOSURE OF INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Every question must be answered. If the question is not applicable, answer with “NA”. See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: P. O. BOX: STREET ADDRESS: CITY: ZIP: FIRM IS: 1. Corporation 2.Partnership 3.Sole Owner4.Association 5.Other____________________________________ DISCLOSURE QUESTIONS If additional space is necessary, please use the reverse side of this page or attach separate sheet. 1.State the names of each “employee” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name Job Title and City Department (if known)N/A 2.State the names of each “official” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name TitleN/A 3.State the names of each “board member” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name Board, Commission or CommitteeN/A 4.State the names of each employee or officer of a “consultant” for the City of Corpus Christi whoworked on any matter related to the subject of this contract and has an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name ConsultantN/A HDR Engineering, Inc. 555 N. Carancahua St., Ste 1600 Corpus Christi, TX 78401 X EXHIBIT “E” Page 2 of 2 FILING REQUIREMENTS If a person who requests official action on a matter knows that the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official, employee or body that has been requested to act in the matter, unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2-349 (d)] CERTIFICATION I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to the City of Corpus Christi, Texas as changes occur. Certifying Person: Title: (Type or Print) Signature of Certifying Person: Date: DEFINITIONS a.“Board member.” A member of any board, commission, or committee appointed by the City Council of the City of Corpus Christi, Texas. b. “Economic benefit”. An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantial segment thereof. c. “Employee.” Any person employed by the City of Corpus Christi, Texas either on a full or part- time basis, but not as an independent contractor. d.“Firm.” Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to produce or deal with a product or service, including but not limited to, entities operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint stock company, joint venture, receivership or trust, and entities which for purposes of taxation are treated as non-profit organizations. e.“Official.” The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus Christi, Texas. f.“Ownership Interest.” Legal or equitable interest, whether actually or constructively held, in a firm, including when such interest is held through an agent, trust, estate, or holding entity. “Constructively held” refers to holdings or control established through voting trusts, proxies, or special terms of venture or partnership agreements.” g. “Consultant.” Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. Arthur B. Colwell V.P., Office Principal 12/30/19 Master Services Agreement Page 1 of 10 SERVICE AGREEMENT NO. 2778 MASTER SERVICES AGREEMENT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20119A – Bond 2020 Street Feasibility Studies The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and Freese and Nichols, Inc., 800 N. Shoreline, Suite 1600N, Corpus Christi, Nueces County, Texas 78401 (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I PROJECT TASK ORDER ..................................................................................... 2 ARTICLE II COMPENSATION ................................................................................................. 3 ARTICLE III QUALITY CONTROL PLAN ................................................................................. 4 ARTICLE IV INSURANCE REQUIREMENTS ........................................................................... 4 ARTICLE V INDEMNIFICATION .............................................................................................. 4 ARTICLE VI TERM; RENEWALS; TIMES FOR RENDERING SERVICE ................................. 4 ARTICLE VII TERMINATION OF AGREEMENT ....................................................................... 5 ARTICLE VIII RIGHT OF REVIEW AND AUDIT ......................................................................... 6 ARTICLE IX OWNER REMEDIES ............................................................................................ 6 ARTICLE X CONSULTANT REMEDIES .................................................................................. 7 ARTICLE XI CLAIMS AND DISPUTE RESOLUTION ............................................................... 7 ARTICLE XII MISCELLANEOUS PROVISIONS ........................................................................ 9 EXHIBITS Master Services Agreement Page 2 of 10 ARTICLE I – PROJECT TASK ORDER 1.1 This Agreement shall apply to as many tasks as City and Consultant agree will be performed under the terms and conditions of this Agreement. Each task Consultant performs for City hereunder shall be designated a Task Order. No Task Order shall be binding or enforceable unless and until it has been properly executed by both City and Consultant. Each properly executed Task Order as shown in Exhibit A shall become a separate supplemental agreement to this Agreement. 1.2 The Consultant shall provide its Scope of Services, to be included in each Task Order. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services which would normally be required by law or common due diligence in accordance with the standard of care defined in Article XII of this Agreement. 1.3 Under this Agreement, Consultant will provide services on a Task Order basis for a range of services related to assisting Engineering Services with professional engineering, architecture and construction services related to execution of Capital Improvements Programs. All work will be subject to authorization from City. A detailed Scope of Services and fee estimate will be developed for each task prior to execution of work. 1.4 Consultant shall follow City Codes and Standards effective at the time of the execution of individual Task Orders. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Task Order. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.5 Consultant must perform tasks and submit deliverables as detailed in each approved Task Order. 1.6 Consultant must provide all labor, equipment and transportation necessary to complete all services agreed to in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City with a list of all subconsultants that includes the services performed by the subconsultant and the percentage of work performed by the subconsultant. Changes in Consultant’s team that provides services under this Agreement must be agreed to by the City in writing. 1.7 Consultant must not begin work on any Task Order authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. 1.8 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in the City’s General Conditions for Construction Contracts, an excerpt of which is attached as an exhibit to this Agreement. 1.9 For projects that require subsurface utility investigation: 1.9.1 The Consultant agrees to prepare and submit to the City a signed and sealed report identifying all utilities within the project area at the Quality Level specified in the Task Order. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.9.2 Utilities that should be identified include, but are not limited to, City-owned utilities, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Master Services Agreement Page 3 of 10 ARTICLE II – COMPENSATION 2.1 The Compensation for all services included in this Agreement and in the Scope of Services for this Agreement shall not exceed $650,000.00. 2.2 The Consultant’s fee for each Task Order will be on a lump sum or time and materials (T&M) basis with a negotiated not-to-exceed amount. The fees will not exceed those identified and will be full and total compensation for all services outlined in each Task Order, and for all expenses incurred in performing these services. 2.3 Consultant shall submit a proposal to the City, which shall be incorporated into this agreement as Exhibit B, subject to approval by the City. 2.4 Consultant shall submit a Rate Schedule with their proposal. 2.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit C. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 2.5.1 Principals may only bill at the hourly rate of Principals when acting in that capacity. Principals acting in the capacity of staff must bill at staff rates. The Consultant shall provide documentation with each payment request that clearly indicates how that individual’s time is allocated and the justification for that allocation. 2.6 The anticipated fee structure under this agreement is as follows: DESCRIPTION NOT TO EXCEED AMOUNT Maximum Contract Amount $650,000.00 Task 1 – TBD TBD Task 2 – TBD TBD Task 3 – TBD TBD Task 4 – TBD TBD Task 5 – TBD TBD Task 6 – TBD TBD 2.7 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any Task Order or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures provided in this Agreement in a timely manner and as required by the terms thereof, any such claim shall be waived. 2.8 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 2.9 Any fee payable under this Agreement is subject to the availability of funds. The Consultant may be directed to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 2.5 above for services provided up to the date of suspension. Master Services Agreement Page 4 of 10 ARTICLE III – QUALITY CONTROL PLAN 3.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 3.2 The Consultant will perform QCP Reviews at intervals during the project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the project scope. Based on the findings of the QCP Review, the Consultant must reconcile the project scope and Opinion of Probable Cost (OPC) as needed. 3.3 Documents that do not meet City standards in effect at the time of the execution of a related Task Order may be rejected. If documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE IV – INSURANCE REQUIREMENTS 4.1 Consultant must not commence work under this Agreement until all required insurance has been obtained, and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 4.2 Insurance Requirements are shown in EXHIBIT D. ARTICLE V - INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VI – TERM; RENEWALS; TIMES FOR RENDERING SERVICE 6.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). Master Services Agreement Page 5 of 10 6.2 This Agreement shall be applicable to Task Order issued hereunder from the Effective Date of the Agreement until project is complete. 6.3 This service shall be for a period of two years beginning on the Effective Date. The Agreement may be renewed for up to _____ one-year renewal options upon mutual agreement of the parties to be evidenced in writing prior to the expiration date of the prior term. Any renewals shall be at the same terms and conditions, plus any approved changes. 6.4 The times for performing services or providing deliverables will be stated in each Task Order. If no times are so stated, Consultant will perform services and provide deliverables within a reasonable time. ARTICLE VII - TERMINATION OF AGREEMENT 7.1 By Consultant: 7.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 7.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 7.2 By City: 7.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 7.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 7.3 Termination Procedure 7.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 7.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Consultant shall mark partially completed work as “Draft” and does not guarantee the accuracy or reliability of partially completed work submitted in accordance with this Article. 7.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. Master Services Agreement Page 6 of 10 7.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE VIII – RIGHT OF REVIEW AND AUDIT 8.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 8.2 “Consultant’s records” include any and all information, materials and data of every kind and character generated as a result of the Work under this Agreement. Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, federal and state tax filings for issue in questions and any and all other agreements, sources of information and matters that may, in City’s judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 8.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s records only during City’s regular business hours. Upon reasonable prior notice, Consultant agrees to allow City’s designee access to all of Consultant’s records, Consultant’s facilities and Consultant’s current or former employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 8.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE IX – OWNER REMEDIES 9.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 9.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 9.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 9.1.3 Losses are incurred because of defects, errors and omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been defects, errors and omissions in the documents. 9.2 The City may assert a claim against the Consultant’s professional liability insurance as appropriate when other remedies are not available or offered for design deficiencies discovered during and after Project construction. Master Services Agreement Page 7 of 10 9.3 When the City incurs non-value added work costs for change orders due to design errors or omissions, the City will send the Consultant a letter that includes: (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 9.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 9.5 The City may withhold or nullify the whole or part of any payment as detailed in Article II. ARTICLE X – CONSULTANT REMEDIES 10.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 10.2 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XI – CLAIMS AND DISPUTE RESOLUTION 11.1 Filing of Claims 11.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 11.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 11.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 11.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Alternative Dispute Resolution. 11.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement and City shall continue to make payments in accordance with this Agreement. 11.2 Alternative Dispute Resolution 11.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and Master Services Agreement Page 8 of 10 settlement negotiations for purposes of applicable rules of evidence. 11.2.2 Before invoking mediation or any other alternative dispute resolution (ADR) process set forth herein, the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of any other ADR process. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation ADR process contained herein. 11.2.3 Mediation 11.2.3.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 11.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 11.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 11.2.3.4 The parties shall share the mediator’s fee. Venue for any mediation or lawsuit arising under this Agreement shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 11.3 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute in this Agreement. 11.4 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 11.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Master Services Agreement Page 9 of 10 ARTICLE XII – MISCELLANEOUS PROVISIONS 12.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 12.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans. 12.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent engineers or architects practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 12.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 12.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 12.6 Entire Agreement. This Agreement, including Task Orders, represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 12.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 12.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. 12.9 Certificate of Interested Parties. Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. Master Services Agreement Page 10 of 10 12.10 Conflict of Interest. Consultant agrees to comply with Chapter 176 of the Texas Local Government Code and file Form CIQ with the City Secretary’s Office, if required. For more information and to determine if you need to file a Form CIQ, please review the information on the City Secretary’s website at http://www.cctexas.com/government/city-secretary/conflict-disclosure/index 12.11 Boycott Israel. As required by Chapter 2270, Government Code, Consultant hereby verifies that it does not boycott Israel and will not boycott Israel through the term of this Agreement. For purposes of this verification, “boycott Israel” means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. 12.12 Controlling Law. This Agreement is governed by the laws of the State of Texas without regard to its conflicts of laws. Venue for legal proceedings lies exclusively in Nueces County, Texas. 12.13 Severability. If, for any reason, any one or more Articles and/or paragraphs of this Agreement are held invalid or unenforceable, such invalidity or unenforceability shall not affect, impair or invalidate the remaining Articles and/or paragraphs of this Agreement but shall be confined in its effect to the specific Article, sentences, clauses or parts of this Agreement held invalid or unenforceable, and the invalidity or unenforceability of any Article, sentence, clause or parts of this Agreement, in any one or more instance, shall not affect or prejudice in any way the validity of this Agreement in any other instance. 12.14 Conflict Resolution Between Documents. Consultant hereby agrees and acknowledges if anything contained in the Consultant-prepared Exhibit B, Scope of Services or in any other document prepared by Consultant and included herein, is in conflict with Articles I - XII of this Agreement (Articles) and/or an approved Task Order, the Articles and/or the Task Order shall take precedence and control to resolve said conflict. 12.15 Title VI Assurance. The Consultant shall prohibit discrimination in employment based upon race, color, religion, national origin, gender, disability or age. CITY OF CORPUS CHRISTI FREESE AND NICHOLS, INC. ________________________________ ________________________________ Mark Van Vleck (Date) Ron Guzman (Date) Assistant City Manager Vice President/Principal 800 N Shoreline, Suite 1600N Corpus Christi, Texas 78401 (361) 561-6500 Office rg@freese.com APPROVED AS TO LEGAL FORM ________________________________ Assistant City Attorney (Date) for City Attorney ATTEST _______________________________ Rebecca Huerta, City Secretary Funding shall be provided per task order. Contract Maximum Amount is $650,000 12/31/2019 EXHIBIT A SAMPLE TASK ORDER PAGE 1 OF 1 EXHIBIT A SAMPLE TASK ORDER This Task Order pertains to a Master Services Agreement for Professional Services by and between City of Corpus Christi, Texas (City) and “Company Name” (Consultant) dated _________________, 2019 (Agreement). Consultant shall perform services on the project described below as provided in this Task Order and in the Agreement. This Task Order shall not be binding until it has been properly signed by both parties. Upon execution, this Task Order shall supplement the Agreement as it pertains to the project described below. TASK ORDER NO.: PROJECT NAME: _______________________________ 1.PROJECT DESCRIPTION 2.SCOPE OF SERVICES 3.COMPENSATION This Task Order is approved and Consultant may proceed. All other terms and conditions of the Agreement remain in full force and effect. CITY OF CORPUS CHRISTI __________________________________ Jeff Edmonds, P.E. Date Director of Engineering Services COMPANY NAME, INC. ____________________________________ Authorized Signer Date Title Address City, State, Zip (xxx) xxx-xxxx name@email.com 800 N. Shoreline Blvd., Suite 1600N + Corpus Christi, Texas 78401 + 361-561-6500 + FAX 817-735-7491 November 14, 2019 Mr. Jeffrey Edmonds, P.E. Director of Engineering Services City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Re: Master Service Agreement (MSA) for Street Feasibility Studies for Bond 2020 (RFQ 2018-10) Freese and Nichols, Inc. Professional Services Proposal City Project No. XXXXXXX Dear Mr. Edmonds: Freese and Nichols, Inc. (FNI) is pleased to provide our Professional Services proposal for the City of Corpus Christi RFQ 2018 -10 Street Feasibility Studies for Bond 2020. It is our understanding that FNI will be provided a list of transportation projects which will be used to develop individual task orders for your review and approval. It is also our understanding that each task order under this contract will be negotiated under a time and materials basis. FNI will follow the City’s Street Feasibility (Bond 2020) Report Format Requirement. FNI will include the following elements in each task order report: •Cover Sheet •Executive Summary •Table of Contents •Project Report (including existing and proposed concepts for all infrastructure impacted by proposed concepts, opinion of probable construction costs and project schedule) •Appendices (including location/vicinity maps, strip map, existing/proposed cross sections, utility base maps, project evaluation checklist, photo key map and project photos FNI will provide one (1) Draft Report and one (1) final report. Each of the two submission will include two (2) hard copies and one (1) electronic copy. FNI proposes to enter into a Master Services Agreement (MSA) with the City of Corpus Christi in the not to exceed amount of $650,000.00 for the aforementioned services. As previously stated, FNI will provide this service on a time and materials basis in utilizing the attached Classification Rate Sheet. FNI will prepare individual task orders in accordance with the MSA for each street segment identified by City of Corpus Christi Engineering Services Department. We look forward to working with your team on this project. Please feel free to contact me should you have any question or concern regarding this item. www.freese.com EXHIBIT B Page 1 of 3 Name Date Page 2 of 2 [Project Number] File Path Respectfully, Ron Guzman, P.E. Vice President/Principal Attachments: Compensation Schedule Form 1295 Certificate of Insurance EXHIBIT B Page 2 of 3 ATTACHMENT CO Rate Professional - 1 121 Professional - 2 145 Professional - 3 165 Professional - 4 190 Professional - 5 221 Professional - 6 253 Construction Manager - 1 96 Construction Manager - 2 125 Construction Manager - 3 146 Construction Manager - 4 184 CAD Technician/Designer - 1 103 CAD Technician/Designer - 2 133 CAD Technician/Designer - 3 164 Corporate Project Support - 1 98 Corporate Project Support - 2 117 Corporate Project Support - 3 157 Intern/ Coop 60 Senior Advisor 175 Rates for In-House Services Technology Charge Bulk Printing and Reproduction $0.00 per hour B&W Color Small Format (per copy)$0.10 $0.25 Travel Large Format (per sq. ft.) Standard IRS Rates Bond $0.25 $0.75 Glossy / Mylar $0.75 $1.25 Vinyl / Adhesive $1.50 $2.00 Mounting (per sq. ft.)$2.00 Binding (per binding)$0.25 OTHER DIRECT EXPENSES: Rates valid through 12/31/2020. 3022015 FNI OWNER Schedule of Charges: Position Compensation to Freese and Nichols shall be based on the following Schedule of Charges. Other direct expenses are reimbursed at actual cost times a multiplier of 1.05. They include outside printing and reproduction expense, communication expense, travel, transportation and subsistence away from the FNI office and other miscellaneous expenses directly related to the work, including costs of laboratory analysis, test,and other work required to be done by independent persons other than staff members. COMPENSATION EXHIBIT B Page 3 of 3 Bond 2020 – Feasibility Study Requirements Page 1 of 6 Street Projects 2019-10-16 Street Feasibility (Bond 2020) Report Format Requirements Prepare a Feasibility Report for each of the assigned projects. Each Street Project shall be bound individually and include the Project Title in the header. These reports should be very brief; use bullets and concise lists as much as possible. Include the following information in the order listed: I.Cover Sheet •Project Title •Photos – small, 2-3 images of pavement conditions specific to project •Submittal Date •Engineer’s Note/Seal (as required by TBPE 137.33) II.Executive Summary (1 to 2 pages; standalone document but bound in report after cover sheet) – The Executive Summary should be written with minimal technical references so the general public will understand what is stated. •Project Title •Submittal Date •Project Description (very brief explanation of existing conditions and proposed improvements; approximately 1-2 paragraph) •Opinion of Probable Cost Summary Table – include construction cost only •Estimated construction duration – assume $500k/mo. execution •Location Map – image of small City line map III.Table of Contents IV.Project Report –This should be written as if the Executive summary is not a part of the report. Items listed should not be duplicated between sections. 1.Project Description – This section can provide additional information to what is provided in Executive Summary and should still be brief. Include recommendation for including/excluding intersections at project limits. 2.Location Map - image of small City Line map 3.Existing Conditions and Proposed Improvements (Note: include information gathered in Project Evaluation Checklist.) 3.1. Street 3.1.1. Roadway 3.1.1.1. Existing •Approximate age of roadway •Street classification (C1, C2, A1, etc.) and description (2 lanes in each direction, one lane in each direction with a center turn lane, etc.; length in LF) •Roadway type (concrete/asphalt, curb & gutter or roadside ditches, etc.) •Existing ROW, pavement/B-B and lane widths EXHIBIT B-1 Bond 2020 – Feasibility Study Requirements Page 2 of 6 Street Projects 2019-10-16 •Current PCI value (City staff will provide a spreadsheet with this information) •Development in the area (residential, commercial, industrial) and significant facilities (schools, fire stations, hospitals, etc.), not just within the project limits, that may be impacted 3.1.1.2. Proposed •Street classification (C1, C2, A1, etc.) and description (2 lanes in each direction, one lane in each direction with a center turn lane, etc.). Note if proposed classification meets or deviates from current UTP and requires plan amendment. •Proposed ROW, pavement/B-B and lane widths. Include recommendation for Land Acquisition based on proposed improvements if ROW is needed (beyond corner clips). Provide aerial with shading to indicate proposed ROW needed (Appendices) •Pavement type (general comments; conceptual pavement section and basis for both concrete and asphalt. Include considerations for only bidding one pavement option if applicable.) •Specify what is included in the street scope, intersections, turn lanes, access roads, etc. 3.1.2. ADA 3.1.2.1. Existing 3.1.2.2. Proposed 3.1.3. Traffic signals 3.1.3.1. Existing 3.1.3.2. Proposed 3.1.4. Street Illumination 3.1.4.1. Existing 3.1.4.2. Proposed 3.1.5. Bike Facilities 3.1.5.1. Existing 3.1.5.2. Proposed 3.1.6. RTA Facilities 3.1.6.1. Existing 3.1.6.2. Proposed 3.2. City Utilities (Note: section requirements shown under Storm Water, but all other Utilities should have same information) 3.2.1. Storm water 3.2.1.1. Existing •Size, type, age & location of utility as found in GIS & As-Builts EXHIBIT B-1 Bond 2020 – Feasibility Study Requirements Page 3 of 6 Street Projects 2019-10-16 • Visual/site inspection to note City utilities in the area and verify general alignment/location of City utilities. • Summarize maintenance history for each system – coordinate directly with Utilities for maintenance reports, with reports provided in appendix. 3.2.1.2. Proposed • Size, type and location of proposed utility – brief description, use concise bullets as applicable • Basis for recommendation – based on maintenance issues and future projections/master plans, etc. (i.e. are there condition issues and/or capacity issues). o Brief summary of master plan  Include plan/design assumptions  Consideration for need and timing of ultimate buildout  Deviations and reasoning for not meeting ultimate buildout  Considerations for future connections (stub outs, etc.)  Include summary of any anticipated off-site improvements needed 3.2.2. Water 3.2.2.1. Existing 3.2.2.2. Proposed 3.2.3. Wastewater 3.2.3.1. Existing 3.2.3.2. Proposed 3.2.4. Gas 3.2.4.1. Existing 3.2.4.2. Proposed 3.3. Third Party Utilities (Note: section requirements shown under AT&T, but all other Third Party Utilities should have same information) 3.3.1. AT&T 3.3.1.1. Existing • Visual/site inspection to note third Party utilities in the area and verify general alignment/location of third party utilities. • Coordination with AT&T and AEP regrading location of their facilities. Include AT&T and AEP Information Request Form as appendix, along with results/response. • Location – proximity within ROW (example: 1’ off Right ROW) • Type – Aerial, underground, minor lines, major duct bank, etc. 3.3.1.2. Proposed • Summary of required relocations and potential conflicts based on proposed project improvements, provide map per appendix 3.3.2. AEP EXHIBIT B-1 Bond 2020 – Feasibility Study Requirements Page 4 of 6 Street Projects 2019-10-16 3.3.2.1. Existing 3.3.2.2. Proposed 3.3.3. Others 3.3.3.1. Existing 3.3.3.2. Proposed 4. Agency/Permit Coordination Requirements 5. Engineer’s Recommendation for Improvements - Based on the Engineer’s review of the Project, site visits, maps, records, etc., provide any additional engineering observations or recommendations to discuss or consider for the proposed Project that would improve efficiency, save costs, reduce public impact, or provide a better end project and/or use of funds. Provide potential alternatives on this Project that could be considered if the budget comes up short from the OPCC during the future design phase. 6. Opinion of Probable Cost 6.1. Summary Table of construction costs divided between Streets, Storm Water, Water, Wastewater and Gas 6.2. Assumptions for Opinion of Probable Cost 7. Project Timetable/Schedule 7.1. Estimated design phase duration – include justification for proposed duration for City consideration 7.2. Estimated construction duration (assume $500k/mo). Include any considerations for longer or shorter time estimate for City consideration. Include list of assumptions. 7.3. Follow format provide below: Design Phase: XX months Construction Phase: XX months Considerations for shorter/longer design: • 1 • 2 • 3 Considerations for shorter/longer construction: a) 1 b) 2 c) 3 Appendices: Appendices must be tabbed for quick reference. A. Location and Vicinity Maps 1. Use attached file template (see examples) 2. 1 page each, 8.5” x 11” A.1 – Location Map A.2 – Vicinity Map (should have aerial background ) B. Strip Map 1. Project Title 2. North Arrow 3. Sized to 11” x XX” – fold out and bound with report EXHIBIT B-1 Bond 2020 – Feasibility Study Requirements Page 5 of 6 Street Projects 2019-10-16 4.Aerial Photograph as Background 5.Relevant street names 6.Proposed street configuration 7.Proposed new alignment (if alignment changing) 8.New width 9.Lanes (show arrows for direction) 10.Sidewalks and bike facilities (if applicable) C.Cross sections including utilities - Existing and proposed on the same 8.5” x 11” page D.Adopted Bike plan page(s) – from attached plan E.Utility base maps (area maps, not strip maps) – include existing and proposed (mains and laterals, not service lines) in same map on single 11” x 17” sheet per utility. E.1 – Storm Water E.2 – Water E.3 – Wastewater E.4 – Gas F. Utility complaint/maintenance reports F.1 – Storm Water – include flood report map and maintenance reports F.2 – Water F.3 – Wastewater F.4 – Gas G.Strip map with third party relocations and potential conflicts highlighted – 11” x 17” H.Third Party Information Request Form, along with results/response H.1 – AT&T H.2 – AEP I.OPCC 1.Use current Bid Form (signature blocks can be eliminated). 2.Construction Costs Only; City will add other administrative project costs when establishing project budget 3.Include a 20% “Unidentified Work Items” line item for each section in the detailed breakdown – The 20% includes unknown design elements and pricing variability. 4.Do not include “allowances” or “contingencies”. 5.Include estimates for both pavement options. I.1 – Base Bid 1 – Asphalt I.2 – Base Bid 2 - Concrete J. Project Evaluation Checklist (template and example attached) K.Photo key map and photographs with descriptions (include key item(s) to note in photo) L.Utility Master Plan map pages L.1 – Storm Water L.2 – Water L.3 – Wastewater L.4 – Gas M.FEMA Map Pages EXHIBIT B-1 Bond 2020 – Feasibility Study Requirements Page 6 of 6 Street Projects 2019-10-16 NOTE: if an element is not present on a project, do not skip the section. Include in the report that the element is not present/does not exist in the project limits. Also include recommendation (i.e. add or no improvements) Examples: •No curb ramps exist within the project limits. Recommendation includes adding ramps at all intersections. •No water distribution line exists within the project limits. •Recommendation includes adding an 8” water distribution line and fire hydrants to meet minimum fire coverage. •No wastewater collection lines exist within the project limits. •No wastewater improvements are recommended. All adjacent properties are currently connected to City wastewater via rear access to wastewater. Submittal Requirements: 1.1 Draft Report (2 hard copy and 1 electronic) 2.1 Final Report (1 hard copy and 1 electronic) EXHIBIT B-1 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit CPage 1 of 1 1 Rev 09/19 EXHIBIT D Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. EXHIBIT “E” Page 1 of 2 SUPPLIER NUMBER __________ TO BE ASSIGNED BY CITY PURCHASING DIVISION CITY OF CORPUS CHRISTI DISCLOSURE OF INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Every question must be answered. If the question is not applicable, answer with “NA”. See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: P. O. BOX: STREET ADDRESS: CITY: ZIP: FIRM IS: 1. Corporation 2.Partnership 3.Sole Owner4.Association 5.Other____________________________________ DISCLOSURE QUESTIONS If additional space is necessary, please use the reverse side of this page or attach separate sheet. 1.State the names of each “employee” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name Job Title and City Department (if known)N/A 2.State the names of each “official” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name TitleN/A 3.State the names of each “board member” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name Board, Commission or CommitteeN/A 4.State the names of each employee or officer of a “consultant” for the City of Corpus Christi whoworked on any matter related to the subject of this contract and has an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name ConsultantN/A 800 N. Shoreline, Ste. 1600N Corpus Christi 78401 X Freese and Nichols, Inc. EXHIBIT “E” Page 2 of 2 FILING REQUIREMENTS If a person who requests official action on a matter knows that the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official, employee or body that has been requested to act in the matter, unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2-349 (d)] CERTIFICATION I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to the City of Corpus Christi, Texas as changes occur. Certifying Person: Title: (Type or Print) Signature of Certifying Person: Date: DEFINITIONS a.“Board member.” A member of any board, commission, or committee appointed by the City Council of the City of Corpus Christi, Texas. b. “Economic benefit”. An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantial segment thereof. c. “Employee.” Any person employed by the City of Corpus Christi, Texas either on a full or part- time basis, but not as an independent contractor. d.“Firm.” Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to produce or deal with a product or service, including but not limited to, entities operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint stock company, joint venture, receivership or trust, and entities which for purposes of taxation are treated as non-profit organizations. e.“Official.” The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus Christi, Texas. f.“Ownership Interest.” Legal or equitable interest, whether actually or constructively held, in a firm, including when such interest is held through an agent, trust, estate, or holding entity. “Constructively held” refers to holdings or control established through voting trusts, proxies, or special terms of venture or partnership agreements.” g. “Consultant.” Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. Ron Guzman Vice President/Principal 12/31/2019 Master Services Agreement Page 1 of 10 SERVICE AGREEMENT NO. 2850 MASTER SERVICES AGREEMENT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20246A – Bond 2020 Utilities Feasibility Studies The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and Lockwood, Andrews & Newnam, Inc, 500 N. Shoreline, Suite 905, Corpus Christi, Nueces County, Texas 78401(Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I PROJECT TASK ORDER ..................................................................................... 2 ARTICLE II COMPENSATION ................................................................................................. 3 ARTICLE III QUALITY CONTROL PLAN ................................................................................. 4 ARTICLE IV INSURANCE REQUIREMENTS ........................................................................... 4 ARTICLE V INDEMNIFICATION .............................................................................................. 4 ARTICLE VI TERM; RENEWALS; TIMES FOR RENDERING SERVICE ................................. 4 ARTICLE VII TERMINATION OF AGREEMENT ....................................................................... 5 ARTICLE VIII RIGHT OF REVIEW AND AUDIT ......................................................................... 6 ARTICLE IX OWNER REMEDIES ............................................................................................ 6 ARTICLE X CONSULTANT REMEDIES .................................................................................. 7 ARTICLE XI CLAIMS AND DISPUTE RESOLUTION ............................................................... 7 ARTICLE XII MISCELLANEOUS PROVISIONS ........................................................................ 9 EXHIBITS Master Services Agreement Page 2 of 10 ARTICLE I – PROJECT TASK ORDER 1.1 This Agreement shall apply to as many tasks as City and Consultant agree will be performed under the terms and conditions of this Agreement. Each task Consultant performs for City hereunder shall be designated a Task Order. No Task Order shall be binding or enforceable unless and until it has been properly executed by both City and Consultant. Each properly executed Task Order as shown in Exhibit A shall become a separate supplemental agreement to this Agreement. 1.2 The Consultant shall provide its Scope of Services, to be included in each Task Order. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services which would normally be required by law or common due diligence in accordance with the standard of care defined in Article XII of this Agreement. 1.3 Under this Agreement, Consultant will provide services on a Task Order basis for a range of services related to assisting Engineering Services with professional engineering, architecture and construction services related to execution of Capital Improvements Programs. All work will be subject to authorization from City. A detailed Scope of Services and fee estimate will be developed for each task prior to execution of work. 1.4 Consultant shall follow City Codes and Standards effective at the time of the execution of individual Task Orders. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Task Order. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.5 Consultant must perform tasks and submit deliverables as detailed in each approved Task Order. 1.6 Consultant must provide all labor, equipment and transportation necessary to complete all services agreed to in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City with a list of all subconsultants that includes the services performed by the subconsultant and the percentage of work performed by the subconsultant. Changes in Consultant’s team that provides services under this Agreement must be agreed to by the City in writing. 1.7 Consultant must not begin work on any Task Order authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. 1.8 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in the City’s General Conditions for Construction Contracts, an excerpt of which is attached as an exhibit to this Agreement. 1.9 For projects that require subsurface utility investigation: 1.9.1 The Consultant agrees to prepare and submit to the City a signed and sealed report identifying all utilities within the project area at the Quality Level specified in the Task Order. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.9.2 Utilities that should be identified include, but are not limited to, City-owned utilities, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Master Services Agreement Page 3 of 10 ARTICLE II – COMPENSATION 2.1 The Compensation for all services included in this Agreement and in the Scope of Services for this Agreement shall not exceed $500,000.00. 2.2 The Consultant’s fee for each Task Order will be on a lump sum or time and materials (T&M) basis with a negotiated not-to-exceed amount. The fees will not exceed those identified and will be full and total compensation for all services outlined in each Task Order, and for all expenses incurred in performing these services. 2.3 Consultant shall submit a proposal to the City, which shall be incorporated into this agreement as Exhibit B, subject to approval by the City. 2.4 Consultant shall submit a Rate Schedule with their proposal. 2.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit C. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 2.5.1 Principals may only bill at the hourly rate of Principals when acting in that capacity. Principals acting in the capacity of staff must bill at staff rates. The Consultant shall provide documentation with each payment request that clearly indicates how that individual’s time is allocated and the justification for that allocation. 2.6 The anticipated fee structure under this agreement is as follows: DESCRIPTION NOT TO EXCEED AMOUNT Maximum Contract Amount $500,000.00 Task 1 – TBD TBD Task 2 – TBD TBD Task 3 – TBD TBD Task 4 – TBD TBD Task 5 – TBD TBD Task 6 – TBD TBD 2.7 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any Task Order or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures provided in this Agreement in a timely manner and as required by the terms thereof, any such claim shall be waived. 2.8 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 2.9 Any fee payable under this Agreement is subject to the availability of funds. The Consultant may be directed to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 2.5 above for services provided up to the date of suspension. Master Services Agreement Page 4 of 10 ARTICLE III – QUALITY CONTROL PLAN 3.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 3.2 The Consultant will perform QCP Reviews at intervals during the project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the project scope. Based on the findings of the QCP Review, the Consultant must reconcile the project scope and Opinion of Probable Cost (OPC) as needed. 3.3 Documents that do not meet City standards in effect at the time of the execution of a related Task Order may be rejected. If documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE IV – INSURANCE REQUIREMENTS 4.1 Consultant must not commence work under this Agreement until all required insurance has been obtained, and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 4.2 Insurance Requirements are shown in EXHIBIT D. ARTICLE V - INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VI – TERM; RENEWALS; TIMES FOR RENDERING SERVICE 6.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). Master Services Agreement Page 5 of 10 6.2 This Agreement shall be applicable to Task Order issued hereunder from the Effective Date of the Agreement until project is complete. 6.3 This service shall be for a period of two years beginning on the Effective Date. The Agreement may be renewed for up to _____ one-year renewal options upon mutual agreement of the parties to be evidenced in writing prior to the expiration date of the prior term. Any renewals shall be at the same terms and conditions, plus any approved changes. 6.4 The times for performing services or providing deliverables will be stated in each Task Order. If no times are so stated, Consultant will perform services and provide deliverables within a reasonable time. ARTICLE VII - TERMINATION OF AGREEMENT 7.1 By Consultant: 7.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 7.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 7.2 By City: 7.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 7.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 7.3 Termination Procedure 7.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 7.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Consultant shall mark partially completed work as “Draft” and does not guarantee the accuracy or reliability of partially completed work submitted in accordance with this Article. 7.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. Master Services Agreement Page 6 of 10 7.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE VIII – RIGHT OF REVIEW AND AUDIT 8.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 8.2 “Consultant’s records” include any and all information, materials and data of every kind and character generated as a result of the Work under this Agreement. Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, federal and state tax filings for issue in questions and any and all other agreements, sources of information and matters that may, in City’s judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 8.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s records only during City’s regular business hours. Upon reasonable prior notice, Consultant agrees to allow City’s designee access to all of Consultant’s records, Consultant’s facilities and Consultant’s current or former employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 8.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE IX – OWNER REMEDIES 9.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 9.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 9.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 9.1.3 Losses are incurred because of defects, errors and omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been defects, errors and omissions in the documents. 9.2 The City may assert a claim against the Consultant’s professional liability insurance as appropriate when other remedies are not available or offered for design deficiencies discovered during and after Project construction. Master Services Agreement Page 7 of 10 9.3 When the City incurs non-value added work costs for change orders due to design errors or omissions, the City will send the Consultant a letter that includes: (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 9.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 9.5 The City may withhold or nullify the whole or part of any payment as detailed in Article II. ARTICLE X – CONSULTANT REMEDIES 10.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 10.2 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XI – CLAIMS AND DISPUTE RESOLUTION 11.1 Filing of Claims 11.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 11.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 11.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 11.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Alternative Dispute Resolution. 11.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement and City shall continue to make payments in accordance with this Agreement. 11.2 Alternative Dispute Resolution 11.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and Master Services Agreement Page 8 of 10 settlement negotiations for purposes of applicable rules of evidence. 11.2.2 Before invoking mediation or any other alternative dispute resolution (ADR) process set forth herein, the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of any other ADR process. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation ADR process contained herein. 11.2.3 Mediation 11.2.3.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 11.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 11.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 11.2.3.4 The parties shall share the mediator’s fee. Venue for any mediation or lawsuit arising under this Agreement shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 11.3 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute in this Agreement. 11.4 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 11.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Master Services Agreement Page 9 of 10 ARTICLE XII – MISCELLANEOUS PROVISIONS 12.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 12.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans. 12.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent engineers or architects practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 12.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 12.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 12.6 Entire Agreement. This Agreement, including Task Orders, represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 12.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 12.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. 12.9 Certificate of Interested Parties. Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. Master Services Agreement Page 10 of 10 12.10 Conflict of Interest. Consultant agrees to comply with Chapter 176 of the Texas Local Government Code and file Form CIQ with the City Secretary’s Office, if required. For more information and to determine if you need to file a Form CIQ, please review the information on the City Secretary’s website at http://www.cctexas.com/government/city-secretary/conflict-disclosure/index 12.11 Boycott Israel. As required by Chapter 2270, Government Code, Consultant hereby verifies that it does not boycott Israel and will not boycott Israel through the term of this Agreement. For purposes of this verification, “boycott Israel” means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. 12.12 Controlling Law. This Agreement is governed by the laws of the State of Texas without regard to its conflicts of laws. Venue for legal proceedings lies exclusively in Nueces County, Texas. 12.13 Severability. If, for any reason, any one or more Articles and/or paragraphs of this Agreement are held invalid or unenforceable, such invalidity or unenforceability shall not affect, impair or invalidate the remaining Articles and/or paragraphs of this Agreement but shall be confined in its effect to the specific Article, sentences, clauses or parts of this Agreement held invalid or unenforceable, and the invalidity or unenforceability of any Article, sentence, clause or parts of this Agreement, in any one or more instance, shall not affect or prejudice in any way the validity of this Agreement in any other instance. 12.14 Conflict Resolution Between Documents. Consultant hereby agrees and acknowledges if anything contained in the Consultant-prepared Exhibit B, Scope of Services or in any other document prepared by Consultant and included herein, is in conflict with Articles I - XII of this Agreement (Articles) and/or an approved Task Order, the Articles and/or the Task Order shall take precedence and control to resolve said conflict. 12.15 Title VI Assurance. The Consultant shall prohibit discrimination in employment based upon race, color, religion, national origin, gender, disability or age. CITY OF CORPUS CHRISTI LOCKWOOD, ANDREWS & NEWNAM, INC. ____________________________________ _____________________________________ Mark Van Vleck Date Steven A. Gilbreath, P.E. Date Assistant City Manager Associate 500 N. Shoreline, Suite 905 Corpus Christi, TX 78401 (361) 882-2257 smharris@lan-inc.com APPROVED AS TO LEGAL FORM ________________________________ Assistant City Attorney Date for City Attorney ATTEST _______________________________ Rebecca Huerta, City Secretary Funding shall be provided per task order. Contract Maximum Amount is $500,000. 12/27/19 EXHIBIT A SAMPLE TASK ORDER PAGE 1 OF 1 EXHIBIT A SAMPLE TASK ORDER This Task Order pertains to a Master Services Agreement for Professional Services by and between City of Corpus Christi, Texas (City) and “Company Name” (Consultant) dated _________________, 2019 (Agreement). Consultant shall perform services on the project described below as provided in this Task Order and in the Agreement. This Task Order shall not be binding until it has been properly signed by both parties. Upon execution, this Task Order shall supplement the Agreement as it pertains to the project described below. TASK ORDER NO.: PROJECT NAME: _______________________________ 1.PROJECT DESCRIPTION 2.SCOPE OF SERVICES 3.COMPENSATION This Task Order is approved and Consultant may proceed. All other terms and conditions of the Agreement remain in full force and effect. CITY OF CORPUS CHRISTI __________________________________ Jeff Edmonds, P.E. Date Director of Engineering Services COMPANY NAME, INC. ____________________________________ Authorized Signer Date Title Address City, State, Zip (xxx) xxx-xxxx name@email.com 500 N. Shoreline Blvd. Ste. 500 • Corpus Christi, Texas 78401 • 361.882.2257 • www.lan-inc.com December 26th, 2019 Jeff Edmonds, P.E. Director of Engineering Services City of Corpus Christi PO BOX 9277 Corpus Christi, Texas 78469-9277 Re: Proposal for Feasibility Studies for Bond 2020 and Future CIP Projects (Water & Wastewater) Dear Mr. Edmonds, The purpose of this proposal is to provide you a scope of services and fee estimate for completing feasibility assessments for Bond 2020 and Future Capital Improvement projects. This project provides for the preparation of an Engineering Feasibility Report with schematic diagrams and cost estimates for specific projects requested through Task Orders from this contract. The work includes the necessary investigations, research and analysis with various meetings with key stakeholders and operating departments with the intent to develop a list of projects, suitable for inclusion into the City’s Capital Improvement Program. Attachment A details the scope of services involved in delivering a feasibility report. Attachment B is a rate sheet for our proposed fees. We propose to complete these services through separate Task Orders at your request. Please feel free to contact me at 361-792-7225 or by email at smharris@lan-inc.com if you have any additional questions. Sincerely, Scott Harris, PE Regional Manager Attachments: A – Scope of Services and Fee Estimate Cc: Sandra Gomez, P.E. EXHIBIT B Page 1 of 7 Attachment A Scope of Services Group B – Utilities Projects Feasibility Studies for Bond 2020 and Future CIP Projects (Water & Wastewater) A. Scope of Professional Services: Task 1 – Data Collection & Kickoff Kickoff Meeting - LAN staff will complete one (1) kickoff meeting with Engineering Services and Utilities Department staff to establish project requirements and review the scope of work and schedule. LAN will produce agenda and minutes for this meeting, deliverable within five (5) days after completion. Review Existing Data and Reports - Under this Activity, LAN shall perform a review of existing data and reports associated with effluent reuse. It is assumed that the City will provide the following to LAN for review: • Record drawings and previously completed reports related to the project • Existing models, if applicable • Water, Wastewater, and any existing master plans, if applicable • Water and Wastewater demand data for potential customers • WWTP discharge permits and any existing regulatory (TCEQ) orders, as applicable for the project Site Visit - LAN staff will complete a site visit to the project site to collect data necessary for the feasibility study. It is assumed that the City will provide access to the site. Planning & Operations Workshop - LAN staff will complete one (1) meeting with city planning and operations department staff to develop a list of concerns related to the proposed project. LAN will coordinate with the City’s Project Manager and Operations Department staff to identify the needs, resources, and key coordination items, if necessary. The results of the meeting will be documented and evaluated to assist with determining the feasibility of alternatives for improvements. This meeting is separate from the kick-off meeting and could be completed on the same day as the site visit. EXHIBIT B Page 2 of 7 Task 2 – Existing Infrastructure & Regulatory Assessment LAN staff will use the data collected in Task 1 and complete a detailed assessment of the existing facilities and infrastructure for the project. In this task the results of the data collection, operations meeting, and site visit are evaluated, documented, and tabulated to determine alternatives for improvement and repair Condition & Capacity Assessment – LAN will complete high-level condition and capacity assessments of the project facilities, including structural, mechanical, and electrical/instrumentation, as necessary. Regulatory - LAN will determine if regulatory approval or coordination is required for the project, such as TCEQ, USACE, TXGLO, TxDOT, or FEMA. Additional Requirements – LAN will assess the need for topographic survey, boundary survey, right-of-way acquisition, subsurface utility engineering, geotechnical, or additional engineering work necessary to complete the project. Task 3 – Alternatives Analysis After Tasks 1-2 are complete above, LAN will perform an examination of alternatives. This analysis includes: Develop Alternatives – develop conceptual, high-level scenarios (advantages/ disadvantages) for improvements to each project site. LAN will assess/select the best design/construction technique, such as remove and replace existing infrastructure, rehabilitation using trenchless technology or similar, or new installation. The intent is to develop a list of projects, suitable for inclusion into the City’s Capital Improvement Program. Engage Vendors - LAN will engage appropriate vendors and manufacturers of equipment necessary for the projects with the goal of reviewing their products and equipment costs. Conceptual Opinions of Probable Construction Costs – LAN will perform conceptual cost estimating to determine opinion of probable construction costs for improvement alternatives and include a discussion on the capital needs of the projects. LAN will assist the City PM and Operating Department to derive funding sources and budget impacts for the projects. Exhibits – LAN will complete conceptual level exhibits for the alternatives including but not limited to pipe routing plans, site plans, etc.. EXHIBIT B Page 3 of 7 Project Schedules – LAN will develop project schedules for design, bid, and construction phase services and recommend phasing for inclusion in the CIP or future Bond pro gram; short-range and long-range. Progress Workshop - LAN staff will complete one (1) half day workshop with City Utilities Department and Operations / Maintenance staff. The purpose of this workshop is collaborate with key decision makers and review proposed alternatives and costs for improvements prior to development of the feasibility report. Task 4 – Feasibility Report Draft Report - LAN will complete a DRAFT Feasibility Report that includes a summary of findings and results of the analysis and services performed in Task 1 – 3 above. This report will include: • Executive Summary • Project Description & Justification (CIP) • Discussion of Existing Infrastructure • Regulatory Requirements • Summary of Findings / Alternatives & Scenarios • Feasibility Assessment & Recommendations • Opinions of Probable Construction Costs • Preliminary Design Requirements / Third-Party Testing Requirements Exhibits – In addition the conceptual level exhibits for each alternative completed in Task 3, LAN can complete and include the following exhibits in the feasibility report, as applicable for the project: • Site Vicinity / Location / Aerial Photogrammetry • Capital Improvement Plan Exhibit / Website Graphic • United States Geological Survey (USGS) Map • Digital Elevation Model (DEM) • FEMA Floodplain Map / FIRM Map of the project site • National Hydrography Dataset (NHD) & National Wetlands Inventory (NWI) • USDA / Natural Resource Conservation Service (NRCS) Soil Survey • Existing Transportation Infrastructure – Highway / Rail • Existing Transportation Infrastructure – County / Local Roads • Texas Railroad Commission (TRC) Oil & Gas Utility and Pipeline Data • Electrical Power and Distribution Map • Plant / Project Site Facilities (Structures, Man-Made Features) • Existing Utility Layouts (Water, Wastewater, Stormwater, Electrical) • Process Flow Diagrams EXHIBIT B Page 4 of 7 Appendices – LAN will include in the report appendices, as applicable: •Any City-Provided reports and data referenced in report •Site Photographs •Existing Equipment List •Proposed list of equipment with vendor / manufacturer back-up data Internal Quality Control / Fatal Flaw Review – Per LAN Quality Assurance / Quality Control Standards we will include a detailed internal fatal flaw analysis at the conclusion of this task. This review will be led by our Senior Water / Wastewater Technical Advisor. Interim Deliverable - LAN will deliver one (1) hard copy and one (1) thumb drive (PDF) of the Draft report to the City for review. City of Corpus Christi Submittal Meeting - LAN will attend one (1) submittal meeting with City staff to walk through the project, summary of findings and recommendations. It is then assumed the City will review the LAN submittal and provide comments to LAN. Those comments will be incorporated into the FINAL Feasibility Report. Any significant modifications or additions to the work will be addressed at this time. FINAL (Signed and sealed) Feasibility Report - LAN will assimilate City review comments and provide one (1) set of the FINAL Report (one electronic (PDF) and three hard copies using City Standards, as applicable) suitable for reproduction. B.Summary of Fees: Fee’s will be developed for each Task Order when assigned, based on the Rates in Attachment B. It is our understanding that the total allowable budget for these studies is: Task Proposed Fee Feasibility Studies for Bond 2020 and Future CIP Project (Wastewater) $250,000.00 Feasibility Studies for Bond 2020 and Future CIP Project (Water) $250,000.00 Total Allowable (Not-to-Exceed) $ $500,000.00 EXHIBIT B Page 5 of 7 C.Project Schedules: Specific project schedules will be developed for each Task Order when assigned; However, below is an estimated project schedule based on LAN’s experience in delivering similar feasibility studies: Item No Task Description Task Duration (work weeks) Cumulative Project Schedule (work weeks) 1 NTP 0 0 2 Data Collection & Kickoff 4 4 3 Alternatives Analysis (Task 2-3) 6 10 4 Progress Workshop 1 11 5 Draft Feasibility Report 4 15 6 City Review of Report 3 18 7 Deliver Final Report 1 19 EXHIBIT B Page 6 of 7 Attachment B Labor Rates Group B – Utilities Projects Feasibility Studies for Bond 2020 and Future CIP Projects (Water & Wastewater) Personnel Rate / Hr Principal $ 305.00 Program Manager / QAQC Manager $ 280.00 Senior Project Manager $ 242.00 Project Manager $ 200.00 Structural Engineer $ 195.00 Project Engineer VI $ 178.00 Senior Electrical Engineer $ 280.00 Project Engineer V $ 135.00 Project Engineer IV $ 130.00 Electrical Engineer $ 235.00 Engineer-in-Training $ 110.00 Graduate Engineer $ 95.00 Senior Designer $ 150.00 Designer $ 142.00 Technician $ 90.00 GIS Specialist $ 120.00 Senior Construction Manager $ 202.00 Inspector $ 92.00 Administrative Assistant $ 75.00 EXHIBIT B Page 7 of 7 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit CPage 1 of 1 1 Rev 09/19 EXHIBIT D Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. EXHIBIT “E” Page 1 of 2 SUPPLIER NUMBER __________ TO BE ASSIGNED BY CITY PURCHASING DIVISION CITY OF CORPUS CHRISTI DISCLOSURE OF INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Every question must be answered. If the question is not applicable, answer with “NA”. See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: P. O. BOX: STREET ADDRESS: CITY: ZIP: FIRM IS: 1. Corporation 2.Partnership 3.Sole Owner4.Association 5.Other____________________________________ DISCLOSURE QUESTIONS If additional space is necessary, please use the reverse side of this page or attach separate sheet. 1.State the names of each “employee” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name Job Title and City Department (if known)N/A 2.State the names of each “official” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name TitleN/A 3.State the names of each “board member” of the City of Corpus Christi having an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name Board, Commission or CommitteeN/A 4.State the names of each employee or officer of a “consultant” for the City of Corpus Christi whoworked on any matter related to the subject of this contract and has an “ownership interest”constituting 3% or more of the ownership in the above named “firm.” Name ConsultantN/A EXHIBIT “E” Page 2 of 2 FILING REQUIREMENTS If a person who requests official action on a matter knows that the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official, employee or body that has been requested to act in the matter, unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2-349 (d)] CERTIFICATION I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to the City of Corpus Christi, Texas as changes occur. Certifying Person: Title: (Type or Print) Signature of Certifying Person: Date: DEFINITIONS a.“Board member.” A member of any board, commission, or committee appointed by the City Council of the City of Corpus Christi, Texas. b. “Economic benefit”. An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantial segment thereof. c. “Employee.” Any person employed by the City of Corpus Christi, Texas either on a full or part- time basis, but not as an independent contractor. d.“Firm.” Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to produce or deal with a product or service, including but not limited to, entities operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint stock company, joint venture, receivership or trust, and entities which for purposes of taxation are treated as non-profit organizations. e.“Official.” The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus Christi, Texas. f.“Ownership Interest.” Legal or equitable interest, whether actually or constructively held, in a firm, including when such interest is held through an agent, trust, estate, or holding entity. “Constructively held” refers to holdings or control established through voting trusts, proxies, or special terms of venture or partnership agreements.” g. “Consultant.” Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. 12/27/19 Stephen A. Gilbreath Vice President Master Services Agreement Page 1 of 10 SERVICE AGREEMENT NO. 2853 MASTER SERVICES AGREEMENT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20245A - Bond 2020 Public Building, Parks and Facilities Feasibility Studies The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and LNV, Inc., 801 Navigation, Suite 300, Corpus Christi, Nueces County, Texas, 78408 (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I PROJECT TASK ORDER ..................................................................................... 2 ARTICLE II COMPENSATION ................................................................................................. 3 ARTICLE III QUALITY CONTROL PLAN ................................................................................. 4 ARTICLE IV INSURANCE REQUIREMENTS ........................................................................... 4 ARTICLE V INDEMNIFICATION .............................................................................................. 4 ARTICLE VI TERM; RENEWALS; TIMES FOR RENDERING SERVICE ................................. 4 ARTICLE VII TERMINATION OF AGREEMENT ....................................................................... 5 ARTICLE VIII RIGHT OF REVIEW AND AUDIT ......................................................................... 6 ARTICLE IX OWNER REMEDIES ............................................................................................ 6 ARTICLE X CONSULTANT REMEDIES .................................................................................. 7 ARTICLE XI CLAIMS AND DISPUTE RESOLUTION ............................................................... 7 ARTICLE XII MISCELLANEOUS PROVISIONS ........................................................................ 9 EXHIBITS Master Services Agreement Page 2 of 10 ARTICLE I – PROJECT TASK ORDER 1.1 This Agreement shall apply to as many tasks as City and Consultant agree will be performed under the terms and conditions of this Agreement. Each task Consultant performs for City hereunder shall be designated a Task Order. No Task Order shall be binding or enforceable unless and until it has been properly executed by both City and Consultant. Each properly executed Task Order as shown in Exhibit A shall become a separate supplemental agreement to this Agreement. 1.2 The Consultant shall provide its Scope of Services, to be included in each Task Order. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services which would normally be required by law or common due diligence in accordance with the standard of care defined in Article XII of this Agreement. 1.3 Under this Agreement, Consultant will provide services on a Task Order basis for a range of services related to assisting Engineering Services with professional engineering, architecture and construction services related to execution of Capital Improvements Programs. All work will be subject to authorization from City. A detailed Scope of Services and fee estimate will be developed for each task prior to execution of work. 1.4 Consultant shall follow City Codes and Standards effective at the time of the execution of individual Task Orders. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Task Order. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.5 Consultant must perform tasks and submit deliverables as detailed in each approved Task Order. 1.6 Consultant must provide all labor, equipment and transportation necessary to complete all services agreed to in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City with a list of all subconsultants that includes the services performed by the subconsultant and the percentage of work performed by the subconsultant. Changes in Consultant’s team that provides services under this Agreement must be agreed to by the City in writing. 1.7 Consultant must not begin work on any Task Order authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. 1.8 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in the City’s General Conditions for Construction Contracts, an excerpt of which is attached as an exhibit to this Agreement. 1.9 For projects that require subsurface utility investigation: 1.9.1 The Consultant agrees to prepare and submit to the City a signed and sealed report identifying all utilities within the project area at the Quality Level specified in the Task Order. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.9.2 Utilities that should be identified include, but are not limited to, City-owned utilities, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Master Services Agreement Page 3 of 10 ARTICLE II – COMPENSATION 2.1 The Compensation for all services included in this Agreement and in the Scope of Services for this Agreement shall not exceed $300,000.00. 2.2 The Consultant’s fee for each Task Order will be on a lump sum or time and materials (T&M) basis with a negotiated not-to-exceed amount. The fees will not exceed those identified and will be full and total compensation for all services outlined in each Task Order, and for all expenses incurred in performing these services. 2.3 Consultant shall submit a proposal to the City, which shall be incorporated into this agreement as Exhibit B, subject to approval by the City. 2.4 Consultant shall submit a Rate Schedule with their proposal. 2.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit C. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 2.5.1 Principals may only bill at the hourly rate of Principals when acting in that capacity. Principals acting in the capacity of staff must bill at staff rates. The Consultant shall provide documentation with each payment request that clearly indicates how that individual’s time is allocated and the justification for that allocation. 2.6 The anticipated fee structure under this agreement is as follows: DESCRIPTION NOT TO EXCEED AMOUNT Maximum Contract Amount $300,000.00 Task 1 – TBD TBD Task 2 – TBD TBD Task 3 – TBD TBD Task 4 – TBD TBD Task 5 – TBD TBD Task 6 – TBD TBD 2.7 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any Task Order or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures provided in this Agreement in a timely manner and as required by the terms thereof, any such claim shall be waived. 2.8 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 2.9 Any fee payable under this Agreement is subject to the availability of funds. The Consultant may be directed to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 2.5 above for services provided up to the date of suspension. Master Services Agreement Page 4 of 10 ARTICLE III – QUALITY CONTROL PLAN 3.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 3.2 The Consultant will perform QCP Reviews at intervals during the project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the project scope. Based on the findings of the QCP Review, the Consultant must reconcile the project scope and Opinion of Probable Cost (OPC) as needed. 3.3 Documents that do not meet City standards in effect at the time of the execution of a related Task Order may be rejected. If documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE IV – INSURANCE REQUIREMENTS 4.1 Consultant must not commence work under this Agreement until all required insurance has been obtained, and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 4.2 Insurance Requirements are shown in EXHIBIT D. ARTICLE V - INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VI – TERM; RENEWALS; TIMES FOR RENDERING SERVICE 6.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). Master Services Agreement Page 5 of 10 6.2 This Agreement shall be applicable to Task Order issued hereunder from the Effective Date of the Agreement until project is complete. 6.3 This service shall be for a period of two years beginning on the Effective Date. 6.4 The times for performing services or providing deliverables will be stated in each Task Order. If no times are so stated, Consultant will perform services and provide deliverables within a reasonable time. ARTICLE VII - TERMINATION OF AGREEMENT 7.1 By Consultant: 7.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 7.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 7.2 By City: 7.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 7.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 7.3 Termination Procedure 7.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 7.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Consultant shall mark partially completed work as “Draft” and does not guarantee the accuracy or reliability of partially completed work submitted in accordance with this Article. 7.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. 7.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as Master Services Agreement Page 6 of 10 required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE VIII – RIGHT OF REVIEW AND AUDIT 8.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 8.2 “Consultant’s records” include any and all information, materials and data of every kind and character generated as a result of the Work under this Agreement. Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, federal and state tax filings for issue in questions and any and all other agreements, sources of information and matters that may, in City’s judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 8.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s records only during City’s regular business hours. Upon reasonable prior notice, Consultant agrees to allow City’s designee access to all of Consultant’s records, Consultant’s facilities and Consultant’s current or former employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 8.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE IX – OWNER REMEDIES 9.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 9.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 9.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 9.1.3 Losses are incurred because of defects, errors and omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been defects, errors and omissions in the documents. 9.2 The City may assert a claim against the Consultant’s professional liability insurance as appropriate when other remedies are not available or offered for design deficiencies discovered during and after Project construction. 9.3 When the City incurs non-value added work costs for change orders due to design errors or omissions, the City will send the Consultant a letter that includes: Master Services Agreement Page 7 of 10 (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 9.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 9.5 The City may withhold or nullify the whole or part of any payment as detailed in Article II. ARTICLE X – CONSULTANT REMEDIES 10.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 10.2 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XI – CLAIMS AND DISPUTE RESOLUTION 11.1 Filing of Claims 11.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 11.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 11.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 11.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Alternative Dispute Resolution. 11.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement and City shall continue to make payments in accordance with this Agreement. 11.2 Alternative Dispute Resolution 11.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 11.2.2 Before invoking mediation or any other alternative dispute resolution (ADR) process set forth herein, Master Services Agreement Page 8 of 10 the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of any other ADR process. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation ADR process contained herein. 11.2.3 Mediation 11.2.3.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 11.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 11.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 11.2.3.4 The parties shall share the mediator’s fee. Venue for any mediation or lawsuit arising under this Agreement shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 11.3 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute in this Agreement. 11.4 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 11.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Master Services Agreement Page 9 of 10 ARTICLE XII – MISCELLANEOUS PROVISIONS 12.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 12.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans. 12.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent engineers or architects practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 12.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 12.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 12.6 Entire Agreement. This Agreement, including Task Orders, represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 12.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 12.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. 12.9 Certificate of Interested Parties. Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. EXHIBIT A SAMPLE TASK ORDER PAGE 1 OF 1 EXHIBIT A SAMPLE TASK ORDER This Task Order pertains to a Master Services Agreement for Professional Services by and between City of Corpus Christi, Texas (City) and “Company Name” (Consultant) dated _________________, 2019 (Agreement). Consultant shall perform services on the project described below as provided in this Task Order and in the Agreement. This Task Order shall not be binding until it has been properly signed by both parties. Upon execution, this Task Order shall supplement the Agreement as it pertains to the project described below. TASK ORDER NO.: PROJECT NAME: _______________________________ 1.PROJECT DESCRIPTION 2.SCOPE OF SERVICES 3.COMPENSATION This Task Order is approved and Consultant may proceed. All other terms and conditions of the Agreement remain in full force and effect. CITY OF CORPUS CHRISTI __________________________________ Jeff Edmonds, P.E. Date Director of Engineering Services COMPANY NAME, INC. ____________________________________ Authorized Signer Date Title Address City, State, Zip (xxx) xxx-xxxx name@email.com EXHIBIT B Page 1 of 3 801 NAVIGATION    |    SUITE 300    |    CORPUS CHRISTI, TEXAS  78408  OFFICE   361.883.1984    |    FAX   361.883.1986    |    WWW.LNVINC.COM  SCHEDULE OF HOURLY CHARGES BY PERSONNEL CLASSIFICATION EFFECTIVE through DECEMBER, 2020 The per diem and miscellaneous expense charges for Engineering, Architecture, Drafting, Surveying, and Planning Services are based on the following hourly rates: Engineering, Planning: Principal ……………………………………………………………………………………………………………. $265.00/hr. Senior Project Manager III ........................................................................................................................... $240.00/hr. Senior Project Manager II ............................................................................................................................ $230.00/hr. Senior Project Manager I ............................................................................................................................. $225.00/hr. Project Manager III ………………………………………………………………………………………………… $210.00/hr. Project Manager II ………………………………………………………………………………………………… $205.00/hr. Project Manager I ………………………………………………………………………………………………… $200.00/hr. Senior Engineer II ………………………………………………………………………………………………… $200.00/hr. Senior Engineer I ……………………………………………………………………………………………………$195.00/hr. Project Engineer IV ………………………………………………………………………………………………… $190.00/hr. Project Engineer III ………………………………………………………………………………………………… $180.00/hr. Project Engineer II ………………………………………………………………………………………………… $170.00/hr. Project Engineer I ………………………………………………………………………………………………… $160.00/hr. Project Architect III ………………………………………………………………………………………………… $190.00/hr. Project Architect II ………………………………………………………………………………………………… $175.00/hr. Project Architect I ………………………………………………………………………………………………… $160.00/hr. Engineer V ………………………………………………………………………………………………………… $155.00/hr. Engineer IV ………………………………………………………………………………………………………… $145.00/hr. Engineer III .................................................................................................................................................. $135.00/hr. Engineer II …………………………………………………………………………………………………………. $120.00/hr. Engineer I ………………………………………………………………………………………………………….. $110.00/hr. Senior Designer III………………………………………………………………………………………………… . $160.00/hr. Senior Designer II ………………………………………………………………………………………………… . $150.00/hr. Senior Designer I ………………………………………………………………………………………………… .. $140.00/hr. Designer III …………………………………………………………………………………………………………. $125.00/hr. Designer II …………………………………………………………………………………………………………. $120.00/hr. Designer I …………………………………………………………………………………………………………. $110.00/hr. Senior CADD Technician III ........................................................................................................................ $115.00/hr. Senior CADD Technician II .......................................................................................................................... $110.00/hr. Senior CADD Technician I ........................................................................................................................... $105.00/hr. CADD Technician IV ………………………………………………………………………………………………. $100.00/hr. CADD Technician III ………………………………………………………………………………………………. $ 95.00/hr. CADD Technician II ………………………………………………………………………………………………. $ 90.00/hr. CADD Technician I ………………………………………………………………………………………………. $ 85.00/hr. EXHIBIT B Page 2 of 3 801 NAVIGATION    |    SUITE 300    |    CORPUS CHRISTI, TEXAS  78408  OFFICE   361.883.1984    |    FAX   361.883.1986    |    WWW.LNVINC.COM  Professional Geoscientist ............................................................................................................................ $140.00/hr. Safety/ Environmental Technician II …………………………………………………………………………….. $110.00/hr. Safety/ Environmental Technician I …………………………………………………………………………….. $100.00/hr. Construction Observer IV …………………………………………………………………………………………. $145.00/hr. Construction Observer III …………………………………………………………………………………………. $125.00/hr. Construction Observer II …………………………………………………………………………………………. $115.00/hr. Construction Observer I ………………………………………………………………………………………….. $105.00/hr. Clerical III …………………………………………………………………………………………………………… $ 95.00/hr. Clerical II …………………………………………………………………………………………………………… $ 85.00/hr. Clerical I …………………………………………………………………………………………………………… $ 70.00/hr. Survey : Professional Surveyor II ………………………………………………………………………………………….. $210.00/hr. Professional Surveyor I ………………………………………………………………………………………….. $185.00/hr. Field Crew (2-Man) ………………………………………………………………………………………………... $190.00/hr. Reproduction work - Prevailing commercial rates; Mileage - current IRS rate per mile; Per diem – current IRS rate; Subcontractors, Consultants, etc. - Cost plus 10%; All other expenses - Cost plus 10% Charges are due and payable within thirty (30) days after receipt of the invoice. Late payment may be charged an interest rate of 1.5% per month of the unpaid balance. EXHIBIT B Page 3 of 3 Facility Feasibility (Bond 2020) Report Format Requirements Prepare a Feasibility Report for each of the assigned projects. Each Facility Project shall be bound individually and Include the Project Title in the header. These reports should be very brief; use bullets and concise lists as much as possible. Include the following information in the order listed: A.Cover Sheet 1.Project Title 2. Photo – small, image showing facility main entrance 1)For parks include Park’s Sign 3.Submittal Date 4.Engineer’s Note/Seal (as required by TBPE 137.33) B.Executive Summary (1 to 2 pages; standalone document but bound in report after cover sheet) – The Executive Summary should be written with minimal technical references so the general public will understand what is stated. 1.Project Title 2.Submittal Date 3.Project Description (very brief explanation of existing conditions and proposed improvements; approximately 1-2 paragraph) 4.Opinion of Probable Cost Summary Table – include construction cost only 5.Estimated construction duration – assume $500k/mo. execution 6.Location Map - small image C.Table of Contents D.Project Report –This should be written as if the Executive summary is not a part of the report. Items listed should not be duplicated between sections. 1.Project Description – This section can provide additional information to what is provided in Executive Summary and should still be brief. 2.Location Map - small image 3.Existing Conditions and Proposed Improvements 1)Facility a)HVAC, Controls, and Plumbing / Lighting, Power, and Fire Alarm (low voltage) / Roof Replacement / OTHER •(For facility projects this will be the area where we add the building component the feasibility will be focusing on. Example, in Bond 2018 we did a report that included Mechanical, Electrical and Fire Alarm Systems. For Bond 2020 I recommend we group reports with the following systems: (1) HVAC, Controls, and Plumbing, (2) Lighting, Power, and Fire Alarm (low voltage). HVAC, Controls, Lighting, and Roofing are the systems the city’s facilities need the most.) EXHIBIT B-1 Page 1 of 6 • Existing 1) Approximate age of system (if multiple items, list them all) 2) Impact of existing condition • Proposed 1) Proposed upgrades / replacements by divisions 2) The goal is to protect the assets; example roof improvement protects from possible water infiltration which could cause additional damage of the gypsum, insulation, office equipment, etc. 3) Agency/Permit Coordination Requirements 4) Engineer’s Recommendation for Improvements - Based on the Engineer’s review of the Project, site visits, maps, records, etc., provide any additional engineering observations or recommendations to discuss or consider for the proposed Project that would improve efficiency, save costs, reduce public impact, or provide a better end project and/or use of funds. Provide potential alternatives on this Project that could be considered if the budget comes up short from the OPCC during the future design phase. 5) Opinion of Probable Cost a. Table of construction costs divided by building standard divisions (Division 1 – 33) • Construction estimates only – include appropriate contingency for current level of design – how should this be added? • Construction estimates should focus on the system as a whole and components will be impacted by the construction of the proposed work. Example, if replacing a roof with roof top units (RTUs) and units have a remaining service life of 5 years or less. The construction estimate should include the cost for replacing / upgrading the RTUs / HVAC components. • Construction estimates should not include any upgrades planned for 5 years out. b) Assumptions for Opinion of Probable Cost 1) Project Timetable / Schedule a. Estimated design phase duration – include justification for proposed duration for City consideration b. Estimated construction duration (assume $500k/mo). Include any considerations for longer or shorter time estimate for City consideration. Include list of assumptions. c. Follow format provide below: Design Phase: XX months Construction Phase: XX months EXHIBIT B-1 Page 2 of 6 Considerations for shorter/longer design: • 1 • 2 • 3 Considerations for shorter/longer construction: • 1 • 2 • 3 Appendices: Appendices must be tabbed for quick reference. A. Location and Vicinity Maps a. Use attached file template (see examples) b. 1 page each, 8.5” x 11” A.1 – Location Map A.2 – Vicinity Map a. Vicinity with aerial background B. Strip Map 1) Project Title 2) North Arrow 3) Sized to 11” x XX” – fold out and bound with report 4) Aerial Photograph as Background 5) Relevant street names C. Project evaluation check list (template and example attached) D. Photo key map and photographs with descriptions (include key item(s) to note in photo) Submittal Requirements: 1. 1 Draft Report (2 hard copy and 1 electronic) 2. 1 Final Report (1 hard copy and 1 electronic) NOTE: if an element is not present on a project, do not skip the section. Include in the report that the element is not present/does not exist in the project limits. Also include recommendation (i.e. add or no improvements) Examples: - No building automation controls for the building. Recommendation include adding controls for HVAC and Lighting Systems. - No downspouts on the building roof system. Recommendation includes adding downspouts to the roof / scuppers and splash pads along with ensuring positive drawings away from the building. EXHIBIT B-1 Page 3 of 6 Facility Cover Photos Sample: Art Center Beach Operations Building EXHIBIT B-1 Page 4 of 6 Animal Control Building Garden Senior Center EXHIBIT B-1 Page 5 of 6 Park’s Sign Sample: West Guth Park Philip Dimitt Municipal Fishing Pier EXHIBIT B-1 Page 6 of 6 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit CPage 1 of 1 1 Rev 09/19 EXHIBIT D Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. Master Services Agreement Page 1 of 10 SERVICE AGREEMENT NO. 2851 MASTER SERVICES AGREEMENT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20245A - Bond 2020 Public Building, Parks and Facilities Feasibility Studies The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and Bath Engineering, 5656 S. Staples Street, Suite 110, Corpus Christi, Nueces County, Texas (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I PROJECT TASK ORDER ..................................................................................... 2 ARTICLE II COMPENSATION ................................................................................................. 3 ARTICLE III QUALITY CONTROL PLAN ................................................................................. 4 ARTICLE IV INSURANCE REQUIREMENTS ........................................................................... 4 ARTICLE V INDEMNIFICATION .............................................................................................. 4 ARTICLE VI TERM; RENEWALS; TIMES FOR RENDERING SERVICE ................................. 4 ARTICLE VII TERMINATION OF AGREEMENT ....................................................................... 5 ARTICLE VIII RIGHT OF REVIEW AND AUDIT ......................................................................... 6 ARTICLE IX OWNER REMEDIES ............................................................................................ 6 ARTICLE X CONSULTANT REMEDIES .................................................................................. 7 ARTICLE XI CLAIMS AND DISPUTE RESOLUTION ............................................................... 7 ARTICLE XII MISCELLANEOUS PROVISIONS ........................................................................ 9 EXHIBITS Master Services Agreement Page 2 of 10 ARTICLE I – PROJECT TASK ORDER 1.1 This Agreement shall apply to as many tasks as City and Consultant agree will be performed under the terms and conditions of this Agreement. Each task Consultant performs for City hereunder shall be designated a Task Order. No Task Order shall be binding or enforceable unless and until it has been properly executed by both City and Consultant. Each properly executed Task Order as shown in Exhibit A shall become a separate supplemental agreement to this Agreement. 1.2 The Consultant shall provide its Scope of Services, to be included in each Task Order. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services which would normally be required by law or common due diligence in accordance with the standard of care defined in Article XII of this Agreement. 1.3 Under this Agreement, Consultant will provide services on a Task Order basis for a range of services related to assisting Engineering Services with professional engineering, architecture and construction services related to execution of Capital Improvements Programs. All work will be subject to authorization from City. A detailed Scope of Services and fee estimate will be developed for each task prior to execution of work. 1.4 Consultant shall follow City Codes and Standards effective at the time of the execution of individual Task Orders. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Task Order. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.5 Consultant must perform tasks and submit deliverables as detailed in each approved Task Order. 1.6 Consultant must provide all labor, equipment and transportation necessary to complete all services agreed to in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City with a list of all subconsultants that includes the services performed by the subconsultant and the percentage of work performed by the subconsultant. Changes in Consultant’s team that provides services under this Agreement must be agreed to by the City in writing. 1.7 Consultant must not begin work on any Task Order authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. 1.8 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in the City’s General Conditions for Construction Contracts, an excerpt of which is attached as an exhibit to this Agreement. 1.9 For projects that require subsurface utility investigation: 1.9.1 The Consultant agrees to prepare and submit to the City a signed and sealed report identifying all utilities within the project area at the Quality Level specified in the Task Order. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.9.2 Utilities that should be identified include, but are not limited to, City-owned utilities, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Master Services Agreement Page 3 of 10 ARTICLE II – COMPENSATION 2.1 The Compensation for all services included in this Agreement and in the Scope of Services for this Agreement shall not exceed $300,000.00. 2.2 The Consultant’s fee for each Task Order will be on a lump sum or time and materials (T&M) basis with a negotiated not-to-exceed amount. The fees will not exceed those identified and will be full and total compensation for all services outlined in each Task Order, and for all expenses incurred in performing these services. 2.3 Consultant shall submit a proposal to the City, which shall be incorporated into this agreement as Exhibit B, subject to approval by the City. 2.4 Consultant shall submit a Rate Schedule with their proposal. 2.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit C. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 2.5.1 Principals may only bill at the hourly rate of Principals when acting in that capacity. Principals acting in the capacity of staff must bill at staff rates. The Consultant shall provide documentation with each payment request that clearly indicates how that individual’s time is allocated and the justification for that allocation. 2.6 The anticipated fee structure under this agreement is as follows: DESCRIPTION NOT TO EXCEED AMOUNT Maximum Contract Amount $300,000.00 Task 1 – TBD TBD Task 2 – TBD TBD Task 3 – TBD TBD Task 4 – TBD TBD Task 5 – TBD TBD Task 6 – TBD TBD 2.7 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any Task Order or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures provided in this Agreement in a timely manner and as required by the terms thereof, any such claim shall be waived. 2.8 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 2.9 Any fee payable under this Agreement is subject to the availability of funds. The Consultant may be directed to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 2.5 above for services provided up to the date of suspension. Master Services Agreement Page 4 of 10 ARTICLE III – QUALITY CONTROL PLAN 3.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 3.2 The Consultant will perform QCP Reviews at intervals during the project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the project scope. Based on the findings of the QCP Review, the Consultant must reconcile the project scope and Opinion of Probable Cost (OPC) as needed. 3.3 Documents that do not meet City standards in effect at the time of the execution of a related Task Order may be rejected. If documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE IV – INSURANCE REQUIREMENTS 4.1 Consultant must not commence work under this Agreement until all required insurance has been obtained, and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 4.2 Insurance Requirements are shown in EXHIBIT D. ARTICLE V - INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VI – TERM; RENEWALS; TIMES FOR RENDERING SERVICE 6.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). Master Services Agreement Page 5 of 10 6.2 This Agreement shall be applicable to Task Order issued hereunder from the Effective Date of the Agreement until project is complete. 6.3 This service shall be for a period of two years beginning on the Effective Date. 6.4 The times for performing services or providing deliverables will be stated in each Task Order. If no times are so stated, Consultant will perform services and provide deliverables within a reasonable time. ARTICLE VII - TERMINATION OF AGREEMENT 7.1 By Consultant: 7.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 7.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 7.2 By City: 7.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 7.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 7.3 Termination Procedure 7.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 7.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Consultant shall mark partially completed work as “Draft” and does not guarantee the accuracy or reliability of partially completed work submitted in accordance with this Article. 7.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. 7.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as Master Services Agreement Page 6 of 10 required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE VIII – RIGHT OF REVIEW AND AUDIT 8.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 8.2 “Consultant’s records” include any and all information, materials and data of every kind and character generated as a result of the Work under this Agreement. Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, federal and state tax filings for issue in questions and any and all other agreements, sources of information and matters that may, in City’s judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 8.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s records only during City’s regular business hours. Upon reasonable prior notice, Consultant agrees to allow City’s designee access to all of Consultant’s records, Consultant’s facilities and Consultant’s current or former employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 8.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE IX – OWNER REMEDIES 9.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 9.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 9.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 9.1.3 Losses are incurred because of defects, errors and omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been defects, errors and omissions in the documents. 9.2 The City may assert a claim against the Consultant’s professional liability insurance as appropriate when other remedies are not available or offered for design deficiencies discovered during and after Project construction. 9.3 When the City incurs non-value added work costs for change orders due to design errors or omissions, the City will send the Consultant a letter that includes: Master Services Agreement Page 7 of 10 (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 9.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 9.5 The City may withhold or nullify the whole or part of any payment as detailed in Article II. ARTICLE X – CONSULTANT REMEDIES 10.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 10.2 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XI – CLAIMS AND DISPUTE RESOLUTION 11.1 Filing of Claims 11.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 11.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 11.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 11.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Alternative Dispute Resolution. 11.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement and City shall continue to make payments in accordance with this Agreement. 11.2 Alternative Dispute Resolution 11.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 11.2.2 Before invoking mediation or any other alternative dispute resolution (ADR) process set forth herein, Master Services Agreement Page 8 of 10 the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of any other ADR process. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation ADR process contained herein. 11.2.3 Mediation 11.2.3.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 11.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 11.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 11.2.3.4 The parties shall share the mediator’s fee. Venue for any mediation or lawsuit arising under this Agreement shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 11.3 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute in this Agreement. 11.4 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 11.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Master Services Agreement Page 9 of 10 ARTICLE XII – MISCELLANEOUS PROVISIONS 12.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 12.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans. 12.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent engineers or architects practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 12.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 12.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 12.6 Entire Agreement. This Agreement, including Task Orders, represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 12.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 12.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. 12.9 Certificate of Interested Parties. Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. EXHIBIT A SAMPLE TASK ORDER PAGE 1 OF 1 EXHIBIT A SAMPLE TASK ORDER This Task Order pertains to a Master Services Agreement for Professional Services by and between City of Corpus Christi, Texas (City) and “Company Name” (Consultant) dated _________________, 2019 (Agreement). Consultant shall perform services on the project described below as provided in this Task Order and in the Agreement. This Task Order shall not be binding until it has been properly signed by both parties. Upon execution, this Task Order shall supplement the Agreement as it pertains to the project described below. TASK ORDER NO.: PROJECT NAME: _______________________________ 1.PROJECT DESCRIPTION 2.SCOPE OF SERVICES 3.COMPENSATION This Task Order is approved and Consultant may proceed. All other terms and conditions of the Agreement remain in full force and effect. CITY OF CORPUS CHRISTI __________________________________ Jeff Edmonds, P.E. Date Director of Engineering Services COMPANY NAME, INC. ____________________________________ Authorized Signer Date Title Address City, State, Zip (xxx) xxx-xxxx name@email.com BATH ENGINEERING CORPORATION TEXAS FIRM REGISTRATION NO. F-829 5656 S. Staples St., Suite 110  Corpus Christi, Texas 78411  Phone 361/992-2284  Fax 361/992-2287 N:\City of Corpus Christi\MSA FEASIBILITIES STUDIES 2020\City of CC MSA Letter of Interest Year 2020.docx Page 1 of 2 30 December, 2019 Jeffrey Edmonds Director, Engineering Services Department City of Corpus Christi 1201 Leopard St. Corpus Christi, TX 78401 Reference: Proposal -- MSA Feasibility Studies for Bond 2020 and Future CIP Projects Bath Engineering Corporation (BEC) appreciates the opportunity to continue providing Professional Services to the City of Corpus Christi and is pleased to submit this Letter of Interest for Feasibility Studies for Bond 2020 and future CIP projects (public buildings, parks, and facilities) per RFQ 2018-10, Group F. The required feasibility studies will provide preparation of engineering reports as per “facility feasibility (Bond 2020) report format requirements”. The work will include any professional services directly related to feasibility studies including but not limited to, necessary investigations, research and analysis, and various meetings with stake holders and operating departments. The Contract will be for one (1) year for an amount not to exceed $300,000, with Task Authorizations priced individually and issued under this Master Service Agreement. Proposed Fee Schedule is attached. We look forward to supporting the City with additional engineering services. If you need any further information in order to process this MSA please contact me. Sincerely, BATH ENGINEERING CORPORATION ___________________________ William B. Stark P.E. President Attachment: 1) 2020-2021 Rate Schedule for Engineering Services (Exhibit B-1) EXHIBIT B Page 1 of 2 BATH ENGINEERING CORPORATION TEXAS FIRM REGISTRATION NO. F-829 5656 S. Staples St., Suite 110  Corpus Christi, Texas 78411  Phone 361/992-2284  Fax 361/992-2287 N:\City of Corpus Christi\MSA FEASIBILITIES STUDIES 2020\City of CC MSA Letter of Interest Year 2020.docx Page 2 of 2 EXHIBIT B-1 RATE SHEETS ARE CONFIDENTIAL PURSUANT THE SECTION 552.104 OF THE TEXAS GOVERNMENT CODE. SECTION 552.110 OF THE CODE PROTECTS THE RELEASE OF THIS COMMERCIAL AND FINANCIAL INFORMATION RATE SCHEDULE FOR ENGINEERING SERVICES Job Classification Base Yr. Optional Yr. 1/1/2020 1/1/2021 Principal Engineer, PE $185 $190 Sr. Project Manager $174 $179 Project Manager $153 $157 Sr. Engineer PE $174 $179 Engineer PE $163 $167 Jr. Engineer (EIT) $126 $129 Sr. Substation Specialist $163 $167 Sr. Controls Specialist $158 $162 Sr. Inspector $132 $135 Sr. Designer $126 $129 Designer II $121 $124 Designer I $99 $101 Administrative Assistant $57 $58 Authorized expenses (lodging, air travel, reproductions, computer charges, etc.) and Subcontractors shall be charged at cost plus 10%. Local travel included in billing rate above. TERMS AND CONDITIONS Charges for services shall be referenced to a project number or purchase order as provided by the Client. Invoices shall be payable to Bath Engineering Corporation in Nueces County, Texas, at 5656 South Staples, Suite 110, Corpus Christi, Texas, 78411. Payment for all charges shall be Net 30 cash. Current: January 1, 2020 thru December 31, 2020  Revised December 04, 2019 EXHIBIT B Page 2 of 2 Facility Feasibility (Bond 2020) Report Format Requirements Prepare a Feasibility Report for each of the assigned projects. Each Facility Project shall be bound individually and Include the Project Title in the header. These reports should be very brief; use bullets and concise lists as much as possible. Include the following information in the order listed: A.Cover Sheet 1.Project Title 2. Photo – small, image showing facility main entrance 1)For parks include Park’s Sign 3.Submittal Date 4.Engineer’s Note/Seal (as required by TBPE 137.33) B.Executive Summary (1 to 2 pages; standalone document but bound in report after cover sheet) – The Executive Summary should be written with minimal technical references so the general public will understand what is stated. 1.Project Title 2.Submittal Date 3.Project Description (very brief explanation of existing conditions and proposed improvements; approximately 1-2 paragraph) 4.Opinion of Probable Cost Summary Table – include construction cost only 5.Estimated construction duration – assume $500k/mo. execution 6.Location Map - small image C.Table of Contents D.Project Report –This should be written as if the Executive summary is not a part of the report. Items listed should not be duplicated between sections. 1.Project Description – This section can provide additional information to what is provided in Executive Summary and should still be brief. 2.Location Map - small image 3.Existing Conditions and Proposed Improvements 1)Facility a)HVAC, Controls, and Plumbing / Lighting, Power, and Fire Alarm (low voltage) / Roof Replacement / OTHER •(For facility projects this will be the area where we add the building component the feasibility will be focusing on. Example, in Bond 2018 we did a report that included Mechanical, Electrical and Fire Alarm Systems. For Bond 2020 I recommend we group reports with the following systems: (1) HVAC, Controls, and Plumbing, (2) Lighting, Power, and Fire Alarm (low voltage). HVAC, Controls, Lighting, and Roofing are the systems the city’s facilities need the most.) EXHIBIT B-1 Page 1 of 6 • Existing 1) Approximate age of system (if multiple items, list them all) 2) Impact of existing condition • Proposed 1) Proposed upgrades / replacements by divisions 2) The goal is to protect the assets; example roof improvement protects from possible water infiltration which could cause additional damage of the gypsum, insulation, office equipment, etc. 3) Agency/Permit Coordination Requirements 4) Engineer’s Recommendation for Improvements - Based on the Engineer’s review of the Project, site visits, maps, records, etc., provide any additional engineering observations or recommendations to discuss or consider for the proposed Project that would improve efficiency, save costs, reduce public impact, or provide a better end project and/or use of funds. Provide potential alternatives on this Project that could be considered if the budget comes up short from the OPCC during the future design phase. 5) Opinion of Probable Cost a. Table of construction costs divided by building standard divisions (Division 1 – 33) • Construction estimates only – include appropriate contingency for current level of design – how should this be added? • Construction estimates should focus on the system as a whole and components will be impacted by the construction of the proposed work. Example, if replacing a roof with roof top units (RTUs) and units have a remaining service life of 5 years or less. The construction estimate should include the cost for replacing / upgrading the RTUs / HVAC components. • Construction estimates should not include any upgrades planned for 5 years out. b) Assumptions for Opinion of Probable Cost 1) Project Timetable / Schedule a. Estimated design phase duration – include justification for proposed duration for City consideration b. Estimated construction duration (assume $500k/mo). Include any considerations for longer or shorter time estimate for City consideration. Include list of assumptions. c. Follow format provide below: Design Phase: XX months Construction Phase: XX months EXHIBIT B-1 Page 2 of 6 Considerations for shorter/longer design: • 1 • 2 • 3 Considerations for shorter/longer construction: • 1 • 2 • 3 Appendices: Appendices must be tabbed for quick reference. A. Location and Vicinity Maps a. Use attached file template (see examples) b. 1 page each, 8.5” x 11” A.1 – Location Map A.2 – Vicinity Map a. Vicinity with aerial background B. Strip Map 1) Project Title 2) North Arrow 3) Sized to 11” x XX” – fold out and bound with report 4) Aerial Photograph as Background 5) Relevant street names C. Project evaluation check list (template and example attached) D. Photo key map and photographs with descriptions (include key item(s) to note in photo) Submittal Requirements: 1. 1 Draft Report (2 hard copy and 1 electronic) 2. 1 Final Report (1 hard copy and 1 electronic) NOTE: if an element is not present on a project, do not skip the section. Include in the report that the element is not present/does not exist in the project limits. Also include recommendation (i.e. add or no improvements) Examples: - No building automation controls for the building. Recommendation include adding controls for HVAC and Lighting Systems. - No downspouts on the building roof system. Recommendation includes adding downspouts to the roof / scuppers and splash pads along with ensuring positive drawings away from the building. EXHIBIT B-1 Page 3 of 6 Facility Cover Photos Sample: Art Center Beach Operations Building EXHIBIT B-1 Page 4 of 6 Animal Control Building Garden Senior Center EXHIBIT B-1 Page 5 of 6 Park’s Sign Sample: West Guth Park Philip Dimitt Municipal Fishing Pier EXHIBIT B-1 Page 6 of 6 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit CPage 1 of 1 1 Rev 09/19 EXHIBIT D Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. Master Services Agreement Page 1 of 10 SERVICE AGREEMENT NO. 2852 MASTER SERVICES AGREEMENT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20245A - Bond 2020 Public Building, Parks and Facilities Feasibility Studies The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) and Hanson Professional Services, Inc., 4501 Gollihar Road, Corpus Christi, Nueces County, Texas 78411 (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I PROJECT TASK ORDER ..................................................................................... 2 ARTICLE II COMPENSATION ................................................................................................. 3 ARTICLE III QUALITY CONTROL PLAN ................................................................................. 4 ARTICLE IV INSURANCE REQUIREMENTS ........................................................................... 4 ARTICLE V INDEMNIFICATION .............................................................................................. 4 ARTICLE VI TERM; RENEWALS; TIMES FOR RENDERING SERVICE ................................. 4 ARTICLE VII TERMINATION OF AGREEMENT ....................................................................... 5 ARTICLE VIII RIGHT OF REVIEW AND AUDIT ......................................................................... 6 ARTICLE IX OWNER REMEDIES ............................................................................................ 6 ARTICLE X CONSULTANT REMEDIES .................................................................................. 7 ARTICLE XI CLAIMS AND DISPUTE RESOLUTION ............................................................... 7 ARTICLE XII MISCELLANEOUS PROVISIONS ........................................................................ 9 EXHIBITS Master Services Agreement Page 2 of 10 ARTICLE I – PROJECT TASK ORDER 1.1 This Agreement shall apply to as many tasks as City and Consultant agree will be performed under the terms and conditions of this Agreement. Each task Consultant performs for City hereunder shall be designated a Task Order. No Task Order shall be binding or enforceable unless and until it has been properly executed by both City and Consultant. Each properly executed Task Order as shown in Exhibit A shall become a separate supplemental agreement to this Agreement. 1.2 The Consultant shall provide its Scope of Services, to be included in each Task Order. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services which would normally be required by law or common due diligence in accordance with the standard of care defined in Article XII of this Agreement. 1.3 Under this Agreement, Consultant will provide services on a Task Order basis for a range of services related to assisting Engineering Services with professional engineering, architecture and construction services related to execution of Capital Improvements Programs. All work will be subject to authorization from City. A detailed Scope of Services and fee estimate will be developed for each task prior to execution of work. 1.4 Consultant shall follow City Codes and Standards effective at the time of the execution of individual Task Orders. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Task Order. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.5 Consultant must perform tasks and submit deliverables as detailed in each approved Task Order. 1.6 Consultant must provide all labor, equipment and transportation necessary to complete all services agreed to in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Consultant must provide City with a list of all subconsultants that includes the services performed by the subconsultant and the percentage of work performed by the subconsultant. Changes in Consultant’s team that provides services under this Agreement must be agreed to by the City in writing. 1.7 Consultant must not begin work on any Task Order authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. 1.8 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in the City’s General Conditions for Construction Contracts, an excerpt of which is attached as an exhibit to this Agreement. 1.9 For projects that require subsurface utility investigation: 1.9.1 The Consultant agrees to prepare and submit to the City a signed and sealed report identifying all utilities within the project area at the Quality Level specified in the Task Order. It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.9.2 Utilities that should be identified include, but are not limited to, City-owned utilities, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Master Services Agreement Page 3 of 10 ARTICLE II – COMPENSATION 2.1 The Compensation for all services included in this Agreement and in the Scope of Services for this Agreement shall not exceed $300,000.00. 2.2 The Consultant’s fee for each Task Order will be on a lump sum or time and materials (T&M) basis with a negotiated not-to-exceed amount. The fees will not exceed those identified and will be full and total compensation for all services outlined in each Task Order, and for all expenses incurred in performing these services. 2.3 Consultant shall submit a proposal to the City, which shall be incorporated into this agreement as Exhibit B, subject to approval by the City. 2.4 Consultant shall submit a Rate Schedule with their proposal. 2.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit C. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 2.5.1 Principals may only bill at the hourly rate of Principals when acting in that capacity. Principals acting in the capacity of staff must bill at staff rates. The Consultant shall provide documentation with each payment request that clearly indicates how that individual’s time is allocated and the justification for that allocation. 2.6 The anticipated fee structure under this agreement is as follows: DESCRIPTION NOT TO EXCEED AMOUNT Maximum Contract Amount $300,000.00 Task 1 – TBD TBD Task 2 – TBD TBD Task 3 – TBD TBD Task 4 – TBD TBD Task 5 – TBD TBD Task 6 – TBD TBD 2.7 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any Task Order or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures provided in this Agreement in a timely manner and as required by the terms thereof, any such claim shall be waived. 2.8 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 2.9 Any fee payable under this Agreement is subject to the availability of funds. The Consultant may be directed to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 2.5 above for services provided up to the date of suspension. Master Services Agreement Page 4 of 10 ARTICLE III – QUALITY CONTROL PLAN 3.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 3.2 The Consultant will perform QCP Reviews at intervals during the project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the project scope. Based on the findings of the QCP Review, the Consultant must reconcile the project scope and Opinion of Probable Cost (OPC) as needed. 3.3 Documents that do not meet City standards in effect at the time of the execution of a related Task Order may be rejected. If documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE IV – INSURANCE REQUIREMENTS 4.1 Consultant must not commence work under this Agreement until all required insurance has been obtained, and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 4.2 Insurance Requirements are shown in EXHIBIT D. ARTICLE V - INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VI – TERM; RENEWALS; TIMES FOR RENDERING SERVICE 6.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). Master Services Agreement Page 5 of 10 6.2 This Agreement shall be applicable to Task Order issued hereunder from the Effective Date of the Agreement until project is complete. 6.3 This service shall be for a period of two years beginning on the Effective Date. 6.4 The times for performing services or providing deliverables will be stated in each Task Order. If no times are so stated, Consultant will perform services and provide deliverables within a reasonable time. ARTICLE VII - TERMINATION OF AGREEMENT 7.1 By Consultant: 7.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 7.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 7.2 By City: 7.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 7.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 7.3 Termination Procedure 7.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 7.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. Consultant shall mark partially completed work as “Draft” and does not guarantee the accuracy or reliability of partially completed work submitted in accordance with this Article. 7.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. 7.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as Master Services Agreement Page 6 of 10 required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE VIII – RIGHT OF REVIEW AND AUDIT 8.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 8.2 “Consultant’s records” include any and all information, materials and data of every kind and character generated as a result of the Work under this Agreement. Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, federal and state tax filings for issue in questions and any and all other agreements, sources of information and matters that may, in City’s judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 8.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s records only during City’s regular business hours. Upon reasonable prior notice, Consultant agrees to allow City’s designee access to all of Consultant’s records, Consultant’s facilities and Consultant’s current or former employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 8.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE IX – OWNER REMEDIES 9.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 9.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 9.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 9.1.3 Losses are incurred because of defects, errors and omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been defects, errors and omissions in the documents. 9.2 The City may assert a claim against the Consultant’s professional liability insurance as appropriate when other remedies are not available or offered for design deficiencies discovered during and after Project construction. 9.3 When the City incurs non-value added work costs for change orders due to design errors or omissions, the City will send the Consultant a letter that includes: Master Services Agreement Page 7 of 10 (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. 9.4 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 9.5 The City may withhold or nullify the whole or part of any payment as detailed in Article II. ARTICLE X – CONSULTANT REMEDIES 10.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 10.2 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XI – CLAIMS AND DISPUTE RESOLUTION 11.1 Filing of Claims 11.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 11.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 11.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 11.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Alternative Dispute Resolution. 11.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement and City shall continue to make payments in accordance with this Agreement. 11.2 Alternative Dispute Resolution 11.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 11.2.2 Before invoking mediation or any other alternative dispute resolution (ADR) process set forth herein, Master Services Agreement Page 8 of 10 the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of any other ADR process. If the parties’ senior management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation ADR process contained herein. 11.2.3 Mediation 11.2.3.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 11.2.3.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 11.2.3.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 11.2.3.4 The parties shall share the mediator’s fee. Venue for any mediation or lawsuit arising under this Agreement shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 11.3 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute in this Agreement. 11.4 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 11.5 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. Master Services Agreement Page 9 of 10 ARTICLE XII – MISCELLANEOUS PROVISIONS 12.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 12.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans. 12.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent engineers or architects practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 12.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 12.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 12.6 Entire Agreement. This Agreement, including Task Orders, represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 12.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 12.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract. 12.9 Certificate of Interested Parties. Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. EXHIBIT A SAMPLE TASK ORDER PAGE 1 OF 1 EXHIBIT A SAMPLE TASK ORDER This Task Order pertains to a Master Services Agreement for Professional Services by and between City of Corpus Christi, Texas (City) and “Company Name” (Consultant) dated _________________, 2019 (Agreement). Consultant shall perform services on the project described below as provided in this Task Order and in the Agreement. This Task Order shall not be binding until it has been properly signed by both parties. Upon execution, this Task Order shall supplement the Agreement as it pertains to the project described below. TASK ORDER NO.: PROJECT NAME: _______________________________ 1.PROJECT DESCRIPTION 2.SCOPE OF SERVICES 3.COMPENSATION This Task Order is approved and Consultant may proceed. All other terms and conditions of the Agreement remain in full force and effect. CITY OF CORPUS CHRISTI __________________________________ Jeff Edmonds, P.E. Date Director of Engineering Services COMPANY NAME, INC. ____________________________________ Authorized Signer Date Title Address City, State, Zip (xxx) xxx-xxxx name@email.com i:\18jobs\18l0316b\admin\06-correspondence\notice of intent - feasibility studies rev1.docx Hanson Professional Services Inc. 4501 Gollihar Road Corpus Christi, TX 78411 (361) 814-9900 Fax: (361) 814-4401 www.hanson-inc.com December 30, 2019 TRANSMITTED VIA EMAIL (JeffE@cctexas.com) Mr. Jeff Edmonds, P.E. City Engineer Engineering Services Department REVISED P.O. Box 9277 Corpus Christi, Texas 78469-9277 Re: Master Service Agreement – Feasibility Studies & Future CIP Projects for Bond 2020 City of Corpus Christi Dear Mr. Edmonds: Hanson Professional Services, Inc. (Hanson) would like to express our interest in the above referenced Master Service Agreement (MSA) with the City of Corpus Christi for Feasibility Studies for Bond 2020 and future Capital Improvement Projects (CIP) projects (public buildings, parks, and facilities) per RFQ 2018-10, Group F. The studies will provide preparation of an engineering report as per “facility feasibility (Bond 2020) report format requirements.” The work will include any professional services directly related to feasibility studies including but not limited to necessary investigations, research and analysis, and various meetings with stakeholders and operating departments. We understand Hanson’s total fees for these projects will be for one year at a not exceed fee of $ 300,000 per year. We will be provided a Task Order for each project identified by the City, that will be on a lump sum fee basis. When or if the $300,000 fee cap is reached, and there are still additional projects that require professional services, Hanson reserves the right to renegotiate with the City prior to providing any additional services. We have very knowledgeable and capable staff that are well-versed in this type of work. We successfully completed numerous feasibility projects during the last cycle, and have completed several CIP projects over the last several years to the satisfaction of the City, and I am confident that we will continue or exceed that same level of service. If you have any questions, please give us a call at (361) 814-9900. Sincerely, HANSON PROFESSIONAL SERVICES, INC. Paul M. Pilarczyk, P.E., REP, M. ASCE Sr. Project Manager/Civil Engineer Enclosures: 2019 Rate Schedule cc: Mr. Isaac Perez – City of Corpus Christi (via email - IsaacP@cctexas.com) Mr. Willie Rivera, P.E. – Hanson Professional Services – Wrivera@hanson-inc.com) EXHIBIT B Page 1 of 2 BASIS OF PAYMENT CONSULTING SERVICES The following schedule is for normal design and consulting services provided on an hourly basis. 1. ENGINEER/ARCHITECT/SCIENTIST POSITIONS: ENGINEER/ARCHITECT/SCIENTIST I ................................................................................................................................. $107.00 ENGINEER/ARCHITECT/SCIENTIST II ................................................................................................................................ $111.00 ENGINEER/ARCHITECT/SCIENTIST III ............................................................................................................................... $114.00 ENGINEER/ARCHITECT/SCIENTIST IV .............................................................................................................................. $129.00 ENGINEER/ARCHITECT/SCIENTIST V ................................................................................................................................ $153.00 ENGINEER/ARCHITECT/SCIENTIST VI .............................................................................................................................. $175.00 ENGINEER/ARCHITECT/SCIENTIST VII ............................................................................................................................. $202.00 ENGINEER/ARCHITECT/SCIENTIST VIII ............................................................................................................................ $238.00 PRINCIPAL ................................................................................................................................................................................ $311.00 2. TECHNICAL POSITIONS: AIDE .............................................................................................................................................................................................. $60.00 TECHNICIAN I ............................................................................................................................................................................ $65.00 TECHNICIAN II ........................................................................................................................................................................... $73.00 TECHNICIAN III .......................................................................................................................................................................... $84.00 TECHNICIAN IV ....................................................................................................................................................................... $105.00 TECHNICIAN V ......................................................................................................................................................................... $110.00 TECHNICIAN VI ....................................................................................................................................................................... $115.00 TECHNICIAN VII ...................................................................................................................................................................... $129.00 MANAGER/DESIGNER............................................................................................................................................................ $142.00 3. ADMINISTRATIVE: ADMINISTRATIVE I .................................................................................................................................................................. $38.00 ADMINISTRATIVE II ................................................................................................................................................................. $66.00 ADMINISTRATIVE III ................................................................................................................................................................ $70.00 ADMINISTRATIVE IV ............................................................................................................................................................... $90.00 ADMINISTRATIVE V ................................................................................................................................................................. $95.00 ADMINISTRATIVE VI ............................................................................................................................................................. $136.00 ADMINISTRATIVE VII ............................................................................................................................................................ $184.00 4. Charges for special services, expert testimony, etc., will be negotiated. 5. The above rates cover straight time only. Overtime directed by the client will be surcharged by 25 percent. 6. Charges for outside consultants and contractors will be at invoice cost plus 10 percent. 7. All direct job expenses and materials other than normal office supplies will be charged at cost plus 10 percent. 8. Mileage charges for automobile = 58 cents per mile. Mileage charges for mobile lab or truck = 66 cents per mile. Charges for vehicles that will remain assigned to a specific job will be $70.00 per day or $825.00 per month for automobiles, and $75.00 per day or $1,125.00 per month for mobile labs or trucks, plus the cost of fuel in lieu of mileage charges. 9. Services will be billed monthly and at the completion of the project. There will be an additional charge of 1 1/2 percent per month compounded monthly on amounts outstanding more than 30 days. 10. Rates are subject to change and may be superseded by a new schedule on or about January 1, 2020. 19 Rev. 0 EXHIBIT B Page 2 of 2 Facility Feasibility (Bond 2020) Report Format Requirements Prepare a Feasibility Report for each of the assigned projects. Each Facility Project shall be bound individually and Include the Project Title in the header. These reports should be very brief; use bullets and concise lists as much as possible. Include the following information in the order listed: A.Cover Sheet 1.Project Title 2. Photo – small, image showing facility main entrance 1)For parks include Park’s Sign 3.Submittal Date 4.Engineer’s Note/Seal (as required by TBPE 137.33) B.Executive Summary (1 to 2 pages; standalone document but bound in report after cover sheet) – The Executive Summary should be written with minimal technical references so the general public will understand what is stated. 1.Project Title 2.Submittal Date 3.Project Description (very brief explanation of existing conditions and proposed improvements; approximately 1-2 paragraph) 4.Opinion of Probable Cost Summary Table – include construction cost only 5.Estimated construction duration – assume $500k/mo. execution 6.Location Map - small image C.Table of Contents D.Project Report –This should be written as if the Executive summary is not a part of the report. Items listed should not be duplicated between sections. 1.Project Description – This section can provide additional information to what is provided in Executive Summary and should still be brief. 2.Location Map - small image 3.Existing Conditions and Proposed Improvements 1)Facility a)HVAC, Controls, and Plumbing / Lighting, Power, and Fire Alarm (low voltage) / Roof Replacement / OTHER •(For facility projects this will be the area where we add the building component the feasibility will be focusing on. Example, in Bond 2018 we did a report that included Mechanical, Electrical and Fire Alarm Systems. For Bond 2020 I recommend we group reports with the following systems: (1) HVAC, Controls, and Plumbing, (2) Lighting, Power, and Fire Alarm (low voltage). HVAC, Controls, Lighting, and Roofing are the systems the city’s facilities need the most.) EXHIBIT B-1 Page 1 of 6 • Existing 1) Approximate age of system (if multiple items, list them all) 2) Impact of existing condition • Proposed 1) Proposed upgrades / replacements by divisions 2) The goal is to protect the assets; example roof improvement protects from possible water infiltration which could cause additional damage of the gypsum, insulation, office equipment, etc. 3) Agency/Permit Coordination Requirements 4) Engineer’s Recommendation for Improvements - Based on the Engineer’s review of the Project, site visits, maps, records, etc., provide any additional engineering observations or recommendations to discuss or consider for the proposed Project that would improve efficiency, save costs, reduce public impact, or provide a better end project and/or use of funds. Provide potential alternatives on this Project that could be considered if the budget comes up short from the OPCC during the future design phase. 5) Opinion of Probable Cost a. Table of construction costs divided by building standard divisions (Division 1 – 33) • Construction estimates only – include appropriate contingency for current level of design – how should this be added? • Construction estimates should focus on the system as a whole and components will be impacted by the construction of the proposed work. Example, if replacing a roof with roof top units (RTUs) and units have a remaining service life of 5 years or less. The construction estimate should include the cost for replacing / upgrading the RTUs / HVAC components. • Construction estimates should not include any upgrades planned for 5 years out. b) Assumptions for Opinion of Probable Cost 1) Project Timetable / Schedule a. Estimated design phase duration – include justification for proposed duration for City consideration b. Estimated construction duration (assume $500k/mo). Include any considerations for longer or shorter time estimate for City consideration. Include list of assumptions. c. Follow format provide below: Design Phase: XX months Construction Phase: XX months EXHIBIT B-1 Page 2 of 6 Considerations for shorter/longer design: • 1 • 2 • 3 Considerations for shorter/longer construction: • 1 • 2 • 3 Appendices: Appendices must be tabbed for quick reference. A. Location and Vicinity Maps a. Use attached file template (see examples) b. 1 page each, 8.5” x 11” A.1 – Location Map A.2 – Vicinity Map a. Vicinity with aerial background B. Strip Map 1) Project Title 2) North Arrow 3) Sized to 11” x XX” – fold out and bound with report 4) Aerial Photograph as Background 5) Relevant street names C. Project evaluation check list (template and example attached) D. Photo key map and photographs with descriptions (include key item(s) to note in photo) Submittal Requirements: 1. 1 Draft Report (2 hard copy and 1 electronic) 2. 1 Final Report (1 hard copy and 1 electronic) NOTE: if an element is not present on a project, do not skip the section. Include in the report that the element is not present/does not exist in the project limits. Also include recommendation (i.e. add or no improvements) Examples: - No building automation controls for the building. Recommendation include adding controls for HVAC and Lighting Systems. - No downspouts on the building roof system. Recommendation includes adding downspouts to the roof / scuppers and splash pads along with ensuring positive drawings away from the building. EXHIBIT B-1 Page 3 of 6 Facility Cover Photos Sample: Art Center Beach Operations Building EXHIBIT B-1 Page 4 of 6 Animal Control Building Garden Senior Center EXHIBIT B-1 Page 5 of 6 Park’s Sign Sample: West Guth Park Philip Dimitt Municipal Fishing Pier EXHIBIT B-1 Page 6 of 6 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit CPage 1 of 1 1 Rev 09/19 EXHIBIT D Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. DATE: December 23, 2019 TO: Peter Zanoni, City Manager FROM: Keith Selman, Assistant City Manager KeithSe@cctexas.com 361-826-3898 CAPTION: Ordinance approving the Second Amended and Restated Stadium Lease Agreement with Corpus Christi Baseball Club, LP; appropriating funds in the amount of $2,000,000.00 from the Business and Job Development Fund to match a $1,000,000 allocation by Corpus Christi Baseball Club, LP, for improvements to Whataburger Field; and amending the operating and capital budget. SUMMARY: The purpose of this item is to amend the agreement to establish a $3M investment in replacement and stadium improvements for FY 2020 to the facility. It should be noted that all purchases of fixtures and capital improvements shall be purchased by Lessee as purchasing agents for the City, such purchases shall be in the name of the City and owned by the City. BACKGROUND AND FINDINGS: In 2014, an economic impact analysis showed an annual impact of Whataburger Field of $19,000,000. The updated study for this year showed the impact to have increased by 9% to $20,680,000. The Corpus Christi Business and Job Development Corporation on September 30, 2003, agreed to incur debt to be funded by the one-eighth of one percent sales tax for the construction of the baseball stadium by the City. In April 2004, the voters of Corpus Christi authorized by election a bond in the amount of $24,565,000 towards the construction, operation, and maintenance of a baseball stadium in the convention center/port area. This debt was refunded in January 2014 and retired in 2017. Following the approval of the election bond in 2004, the City of Corpus Christi signed a fifteen (15) year lease agreement with the Hooks. In 2013, the base agreement was amended from fifteen (15) years to thirty (30) years. As part of the agreement, the City Amendment to Whataburger Field agreement AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting January 21, 2020 Second Reading Ordinance for the City Council Meeting January 28, 2020 pays insurance on the baseball stadium, while the Hooks make corresponding rent payments to the City. The annual rent increases by $10,000 every five (5) years of the term. For FY 2020, the annual rent increases to $80,000. It should be noted that all purchases of fixtures and capital improvements shall be purchased by Lessee as purchasing agents for the City, such purchases shall be in the name of the City and owned by the City. Table 1. Hooks and City Expenses Hooks City of Corpus Christi Fiscal Year Capital Expenditures Annual Rent Contribution via Type A funds Contribution via HOT funds Property Insurance 2020 $1,000,000 $80,000 $2,000,000 $0 $67,100 2019 $966,415 $70,000 $175,000 $70,670 2018 $617,924 $70,000 $175,000 $65,434 2017 $519,247 $70,000 $175,000 $65,529 2016 $645,518 $70,000 $175,000 $81,647 2015 $554,993 $70,000 $175,000 $109,167 2014 $711,866 $60,000 $175,000 2013 $299,237 $60,000 N/A 2012 $27,168 $60,000 N/A 2011 $3,022 $60,000 N/A 2010 $16,823 $60,000 N/A 2009 $26,925 $50,000 N/A 2008 $190,763 $50,000 N/A 2007 $349,375 $50,000 N/A 2006 $67,520 $50,000 N/A 2005 $894,217 $50,000 N/A TOTAL $ 6,891,013 $980,000 $2,000,000 $1,050,000 $459,547 Hooks total expenses total $7,871,013. City expenses after the initial building investment of $24M has been $1,509,547. On December 9, 2019, the Corpus Christi Business and Job Development Corporation approved $2M towards capital improvements to the baseball stadium. The amendments are: 1. 2:1 match with the Type A and the Hooks for FY 2020; For every $1 spent by the Hooks, the Type A will contribute $2 not to exceed $2,000,000 2. Use of the “Nights at the Cotton Club” meeting room three times a year, as scheduling allows 3. Access to a suite free of charge throughout the entire term of this lease 4. Provide $500 food voucher for use in the City suite during one half of the home games each year ALTERNATIVES: To not approve this amendment and expenditure the City’s annual contribution will remain at $175K and capital needs will be postponed. Approving this item will free up $175k budgeted from Hotel Occupancy Tax funds. FISCAL IMPACT: Funding for this project will be from Fund 1140 Business and Job Development Fund, the funding source of the baseball stadium construction. The unreserved fund balance is currently $11,165,777. Funding Detail: Fund: 1140 Business and Job Development Organization/Activity: 13826 Baseball Stadium Mission Element: N/A Project # (CIP Only): N/A Account: Unreserved fund balance RECOMMENDATION: Staff recommends approving the ordinance to amend the lease agreement and to allocate $2M in funds for capital improvements for FY 2020 to Whataburger Field. LIST OF SUPPORTING DOCUMENTS: Amended lease agreement FY2020 Project list 2014 Economic Impact Study 2020 Economic Impact Study Page 1 of 2 Ordinance approving the Second Amended and Restated Stadium Lease Agreement with Corpus Christi Baseball Club, LP; appropriating funds in the amount of $2,000,000.00 from the Business and Job Development Fund to match a $1,000,000 allocation by Corpus Christi Baseball Club, LP, for improvements to Whataburger Field; and amending the operating and capital budget. Be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. That $2,000,000.00 from the unreserved fund balance in the Fund No. 1140 Business/Job Development Fund is appropriated for the FY 2020 contribution to capital repairs at the Baseball Stadium as laid out in the Second Amended and Restated Stadium Lease Agreement, to provide a match to the $1,000,000.00 in capital repairs funded by Corpus Christi Baseball Club, LP. SECTION 2. That Ordinance No. 031870, which adopted the FY 2019-2020 Operating and Capital Budget, is amended to increase proposed expenditures in the No. 1140 Business/Job Development Fund by $2,000,000.00 for the FY 2020 contribution to capital repairs at the Baseball Stadium. SECTION 3. That the City Manager or designee is authorized to execute the Second Amended and Restated Stadium Lease Agreement with Corpus Christi Baseball Club, LP. This ordinance takes effect upon City Council approval on this the _____ day of ___________________, 2020. ATTEST: THE CITY OF CORPUS CHRISTI _____________________________ ____________________________ Rebecca Huerta Joe McComb City Secretary Mayor Page 2 of 2 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 20 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 __________ 2020, 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 20. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 2014 | No. 3 Community Benefits of Type A Funds By Jim Lee This article reviews the economic significance of the City of Corpus Christi’s Type A funds , which are supported by a one-eighth cent sales tax . Quantitative evidence supports that the public funds have be n- efited the local community by : (1) maintaining sustainable development of the downtown bus iness and residential community; (2) enhancing the quality of life of Corpus Christi residents; (3) promo ting con- tinued development of local tourism; (4) fulfilling the housing needs of low -income families and seniors; (5) facilitating the development of a skilled workforce through local higher education instit utions; (6) nurturing career development for college graduates; and (7) assisti ng the development or expansion of both large and small local businesses. For more than 50 years since 1961, Texas residents have been paying sales tax almost daily. With no in- come tax, sales and property tax revenues have been the primary funding sources for both the state and local government entities. The current sales tax rate for the City of Corpus Christi is 8.25 cents per taxable dollar, and the state levies 6.25 cents of that total. The City government has been collecting the maximum rate of 2 cents allowed by the state since local vot- ers approved an additional one-eighth cent to the sales tax in 2001. That portion of the local tax revenue constitutes the Business and Job Development Corporation funds, commonly known as the Type A funds. The Type A funds support three types of community development projects, namely the improvement of the downtown seawall; the construction of a multi-purpose arena; and business and workforce development programs. Since 2001, an average of approximately $6 million in sales tax revenue has been collected each year. Decisions on the distribution of the funds are made by members of a special board, known as the Type A Board (formerly 4A Board). Members of this board are community leaders appointed by the City Council. A cumulative total of $14 million has been paid out from those three fund accounts. How have those funds performed over the course of more than 10 years? This article summarizes how the funds have been dispersed, and how the funded programs have benefited the local community. Seawall Improvement Fund Since inception, the funds allocated towards improvement of the downtown seawall have totaled $43 million. The seawall is a crucial part of the downtown landscape, and the benefits of its maintenance can be grouped into three categories. First, the maintenance work has brought physical impacts to the seawall by reducing erosion landward of the seawall structure, which helps protect properties and infrastructure in downtown Corpus Christi. Second, the seawall generates positive social impacts by allowing for the development of recreational space with public facilities at the waterfront downtown. In particular, the sidewalk by the seawall serves as part of Shoreline Drive’s right-of-way for both drivers and pedestrians, as well as part of the Bayfront Hike and Bike Trail. Some area protected by the seawall also serves as a public park with open space for entertainment. The third type of community impact is the benefit in economic terms as a result of the physical and social impacts that the seawall brings to the city. A well maintained seawall benefits the local community by (1) preserving or enhancing the market values of residential and business properties downtown; (2) integrating downtown convention facilities and other businesses that support tourism; (3) integrating port-related facili- ties that support shipping activities; (d) providing visual amenity for both local residents and visitors; and (4) providing potential cost savings from damages to properties and infrastructure in the event of a failure of the seawall due to a hurricane or storm. Page 2 Downtown Businesses Businesses in the 551 acres of the Corpus Christi downtown area make up about 7 per- cent of the city’s total business establishments. A great majority of those businesses, such as hotels and restaurants, serve out-of-town visi- tors. Downtown Corpus Christi plays a major role in local tourism. Out-of-town visitors bring a total of $1.2 billion to the metro area each year. More than 10 percent of their trips are associated with conventions, concerts and spectator sports in the downtown area. Such activities contribute to an estimated total of $127 million per year in tourism dollars, which also include spending on local hotels and motels, restaurants, convenience stores and so on. Arena Facility Fund The second account of the Type A funds is dedicated to the development of a multipurpose facility, officially named as the American Bank Center (ABC) arena. Today, approximately $50 million has been drawn from that account. Since its completion, the ABC has been the primary venue for large conventions and recre ational activities in South Texas. Events held at the ABC have generated a cumulative total of $30 million in revenues, which include convention fees, food and beverages, and other services. That amount of revenues represents the direct benefits that event attendants value. As a large portion of the attendees comes from out of town, the ABC also generates visitors’ spending on lodging and food, and visits to other local attractions during their stay in the area. According to a study by Impact DataSource (2008), the total economic impact of the ABC, including its ripple effects on the rest of the business community, amounts to $18 million annually. Economic Development Fund The third fund account that has been supported by the one-eighth cent city sales tax was passed in 2002. The fund it is dedicated to economic development. The ac- companying table on the right shows a breakdown of the fund. The fund has been allocated to the construction of a baseball stadium named as Whataburger Field, affordable homes, and financial support for business incentives and job creation programs. Baseball Stadium Opened in 2005, Whataburger Field is home to Cor- pus Christi Hooks and Texas A&M University-Corpus Christi’s Islander baseball team. That stadium pro- vides facilities for baseball games and other sports events that enhance the quality of life of both local attendants and visitors to Corpus Christi. In economic terms, Impact DataSource (2013) has reported that Whataburger Field generates an ongo- ing local impact of $19 million annually in the form of increased business activity directly and indirectly as- sociated with the stadium’s operation, its attendants’ purchases on site, and other spending by local resi- dents and out-of-town visitors. The additional business activities associated with the stadium support an equivalent of 300 permanent jobs. Its baseball events generate a total of 3,500 hotel nights per year from visitors and visiting teams. Affordable Housing Since 2002, a cumulative total of $4 million has been allocated to constructing and rehabilitating affordable housing units in Corpus Christi. For each new affordable home, the construction phase creates a one-time direct economic impact on the construction industry, on par with building comparable housing units. The to- tal funding of $4 million has helped support the construction of an estimated 50 affordable housing units. The impact of affordable homes should be appreciated not only during their construction, but also after con- struction is complete. Drawing on findings of National Association of Home Builders (2010), affordable hous- ing generates the following permanent effects. First, additional jobs and spending are created when those homes are occupied: Each household that occupies an affordable home supports 15 jobs (compared to 16 jobs for market-rate property), contributing to a total impact of $1 million annually for local business owners and employees. Second, affordable home projects help attract both new employers and low-skill workforce. Third, affordable housing helps maintain or even raise surrounding property values, which in turn increase Downtown Tourism Activities Visitors Trips Annual Spending % Total Corpus Christi MSA Total 7.42 mil $1,154 mil 100% Downtown Total 0.82 mil $127 mil 11% Convention 0.22 mil $35 mil 3% Concert, play, dance etc. 0.45 mil $69 mil 6% Sports (baseball, hockey) 0.15 mil $23 mil 2% Source: Lee (2013). Economic Development Fund Accounts Expenditure Details Amount Baseball Stadium $3.9 mil Affordable Housing $4.0 mil Major Business Incentives $11.3 mil Small Business Projects $3.9 mil Debt Service $22.3 mil Administration $0.8 mil TOTAL $45.5 mil Annual Economic Impact of Whataburger Field Sources of Economic Impact Amount Stadium's Local Purchases $2.4 mil Attendants' Purchases at the Stadium $12.0 mil Local Residents' Spending $2.9 mil Visitors' Spending (lodging, food, etc.) $1.8 mil TOTAL $19.0 mil Source: Impact DataSource, 2013. Page 3 local and state tax revenues. Fourth, evidence supports that affordable homes help reduce the foreclosure and delinquency rates among their owners. Finally, affordable homes leave low-income families with more disposable income to spend on local goods and services. Funding for Higher Education The majority of decisions for the allocation of the Type A funds are related to proposed economic or work- force development projects. Those projects can be grouped into three types: workforce training by local higher education institutions and other non-profit training facilities; financial incentives for major business development; and small business and career development programs. Together, Coastal Bend Craft Training Center, Del Mar College and Texas A&M University-Corpus Christi have received a cumulative total of $8 million from the City. Those institutions reported a total of 16 full-time- equivalent jobs created directly through the funds. However, the true economic values of those projects should be measured not by direct job creation associated with the increased public spending, but rather the benefits to society as a result of a more educated and skilled workforce. More education and skill training in the community would translate into income gains for the graduates over the course of their working lives. Local Business Incentives and Projects A total of 9 companies have received major business incentives from the City. With a cumulative total fund- ing of $3 million, those companies reported a combined total of 1,450 jobs created or retained as a result. So far, most of the funds from this business incentives account have been dispersed to local businesses for ex- pansion as opposed to luring new employers to the area. In addition to promoting the development of local businesses, the City has also supported career develop- ment for college graduates as well as promotion of local entrepreneurship. Funding of this Small Business Projects account is geared towards enhancing local labor market efficiency by matching specific skill needs with job seekers. Internship programs, the majority of the funded projects, enhance the marketability of local graduates from Texas A&M University-Corpus Christi and Del Mar College. Organizations such as ACCION and Workforce Solutions of the Coastal Bend further support the function of local labor markets with job postings data and other services such as interview training. Other programs were aimed at developing startup companies and stimulating job creation. For instance, SCORE, a small business counseling group, assists small businesses through workshops and mentoring. Similarly, Del Mar’s Fast Track program has helped small businesses to expand their business through coursework. Funding for projects in the Small Business category amounts to nearly $4 million, with a reported total of 513 jobs created or retained. However, the true impact on the business community far exceeds what those aggregate numbers suggest. The eight funded programs together have served over 5,000 local businesses, and 755 college-level interns for developing their careers. The key economic challenge faced by the South Texas community is its deficiency in education attainment, which is the culprit for the region’s overall lackluster economic development until recently. The goal of the Economic Development fund, as approved by local voters in 2002, is to stimulate the growth of high-paying jobs in particular. As evident in the recent history of Austin, the nation’s economic leader, this goal can be achieved through the development of a highly educated workforce along with innovative entrepreneurship. University Programs The significance of education in economic development is the rationale for the City’s funding of a variety of programs at the lo- cal higher education institutions. Texas A&M University-Corpus Christi is a major recipient of the Type A funds. For instance, the Type A Board dispersed $100,000 to the university for the development of its new mechanical engineering degree in 2009. More than 300 students are now enrolled in this engineering program. Given a reported average annual starting salary of $75,000 for the graduates, the public funding has helped generate an estimated $23 million in wage earnings per year. The City has also funded $1.5 million for the establishment of the university’s Coastal Bend Business Innova- tion Center (CBBIC). Since its inception in 2009, the Center has helped with the development of over 100 new local business ventures. A large number of those businesses are in high-tech or “green” manufacturing industries, which are largely absent in the region. In 2013, the Type A Board approved the funding for the university’s establishment of a headquarter for an unmanned aircraft systems (UAS) test-site, which was subsequently approved by the FAA. This project, housed in the CBBIC, promises to generate an annual economic impact of $26 million and hundreds of jobs. TAMUCC Programs and Impacts Program Funding Amount Economic Impact (Annual) Financial Employment CBBIC $1.5 mil $5 mil client revenues 113 jobs Mechanical Engineering $0.1 mil $23 mil salaries 311 students Research Lab $0.3 mil UAS $0.6 mil $26 mil output 120 jobs Small Business Internships $1.0 mil $5 mil salaries 6 jobs/100 interns TOTAL $4.5 mil >$60 mil >650 jobs Page 4 College of Business, Unit 5808 6300 Ocean Drive Corpus Christi, Texas 78412 USA Return Service Requested: Please send corrected mailing label to the above address 2014 No. 3 Page 4 (continued) Texas A&M University-Corpus Christi has received $4.5 million in grants from the City. Judging by the added incomes or business revenues alone, the funded programs have generated at least 10 times more financial benefits than the amount of public funding. This means that for every dollar of public investment, taxpayers reap more than $10 each year in benefits to society. No Free Lunch Substantial data support that most economic development pro- grams funded by the 1/8 cent sales tax have benefited the local community at large. Yet the significance of those programs is multifaceted and far-reaching—far beyond those returns reported here in dollars and cents. While the benefits to society from those tax dollars invested seem substantial, funding decisions by Type A Board members are by no means simple in light of a lim- ited budget, which reflects society’s scarce resources. According to economic theory, other things being equal, policy- makers maximize societal welfare if they pursue each prospec- tive community development project that delivers at least one dollar’s worth of additional benefit to the community, given one additional public investment dollar. This general rule of marginal benefit vs. marginal cost, however, provides no guidance for dif- ferentiating competing projects that carry the same economic value. In this case, priorities depend on society’s collective pref- erences. Notes: This article is adapted from a presentation made to the Type A Board of the City of Corpus Christi on February 17, 2014. Texas A&M University-Corpus Christi, College of Business Dr. John Gamble, Dean, College of Business Editor: Jim Lee Chief Economist EDA University Center Assistant to the Editor: Shawn Elizondo Corpus Christi and Coastal Bend Economic Pulse is a joint publication of the College of Business and EDA University Center at Texas A&M University-Corpus Christi. Material may be reprinted if the source is properly credited. For past issues of this newsletter or information about the Corpus Christi or Coastal Bend economy, visit us online at pulse.cob.tamucc.edu or coastalbendinnovation.com/eda. Any opinions expressed or implied are solely those of the original authors and do not reflect the views of the College of Business or Texas A&M University-Corpus Christi. Please send correspondence to Jim Lee, (361) 825-5831 or email jlee@tamucc.edu. Nonprofit Org. U.S. Postage PAID Permit No. 954 Corpus Christi, TX Regional Economic Impact of Prepared by: South Texas Economic Development Center Texas A&M University-Corpus Christi Corpus Christi, TX 78412 Corpus Christi Hooks Whataburger Field and the January 2020 Update Table of Contents Introduction ...................................................................................................................... 3 Description of the Stadium and Team .............................................................................................…………………….. 3 Summary of Findings ........................................................................................................................................ 3 Economic Impact of Stadium Operations, 2005-2019 ..........................................................…………............................... 4 Costs and Benefits for Local Taxing Districts, 2005-2019 ....................................................................... 5 Net Benefits Received by the City ....................................................................................... 8 Methodology ............................................................................................................. 9 Data and Assumptions ............................................................................................................10 Economic Impact Estimation ………………………………………………………………………………………19 Costs and Benefits Calculations ……………….………………………………..…………………………….26 City of Corpus Christi ....................................................................................................................................................27 Corpus Christi Crime Control District ....................................................................................................................................................33 Corpus Christi MTA ....................................................................................................................................................34 Nueces County ......................................................................................................................................................35 Corpus Christi Independent School District ................................................................................40 Del Mar College ......................................................................................................................................................44 Nueces County Hospital District ......................................................................................................................................................45 Page 2 Introduction This report summarizes the findings of an economic impact analysis for Whataburger Field and the Corpus Christi Hooks in Corpus Christi over the 2005-2019 period. The methodology draws on two corresponding economic impact studies conducted by Impact DataSource in 2013 and 2015, and the South Texas Economic Development report in 2017. This report focuses on Whataburger Field's first 15 years of operations. Description of the Stadium and Team Whataburger Field is the home of the Corpus Christi Hooks and the Texas A&M University-Corpus Christi Islanders baseball team. The Hooks is the Minor League AA affiliate of the Houston Astros. Construction of the baseball stadium was made possible by a local election in 2002, in which voters approved a 1/8-cent sales tax increase to fund the stadium and other economic development projects. The stadium opened in 2005 with a total construction cost of $24.5 million. It has a seating capacity of 7,728: 5,050 fixed seats, 19 suites, and two outfield berm areas that accommodate nearly 2,000 fans. In addition to baseball, Whataburger Field has hosted a number of other sports or performance events. The stadium also underwent capital improvements of $966,000 in 2019. The Houston Astros now owns Corpus Christi Hooks and the lease from the City of Corpus Christi, after purchasing the team from Ryan Sanders Baseball in 2014. The team operates with about 35 full-time employees along with a number of part-time employees. On game days, about 200 people work on the field, the concessions and stands. During the 70 annual Hooks home games with over 320,000 attendees, out-of-town fans, visiting teams, umpires, scouts and other officials all stay overnight in Corpus Christi. The stadium also hosts a large number of high school and college games, and other special events year round with an estimated annual total of nearly 100,000 attendees. Summary of Findings The cumulative total economic impact from the construction and operations of Whataburger Field through 2019 is $310 million (historical dollars), or an average of $20.68 million per year. The City of Corpus Christi has received from the operations of Whataburger Field and home games of the Corpus Christi Hooks over the period 2005-2019: Net revenues (historical dollars)$5,856,562 Net revenues (adjusted for inflation)$7,016,998 Source: Impact DataSource, and author's calculations. Whataburger Field and the Corpus Christi Hooks Regional Economic Impacts of Estimated Net Revenues for the City, 2005-2019 Page 3 The following is a summary of some measures of the direct impacts of the stadium and the Hooks over the 2005-2019 period: Annual taxable sales at the stadium $12,000,000 Annual taxable purchases of local supplies and services $2,000,000 for the operation of the stadium and the team Number of direct jobs supported by the stadium and team 300 Total annual payroll for the stadium and team $5,000,000 Average annual attendance 422,993 Average annual Hooks home game days 70 Average attendance per game 6,043 Average annual out-of-town overnight fans and 10,000 visitors to other events Annual hotel room nights generated by Hooks home games 3,500 Source: Impact DataSource, and author's calculations. Economic Impact of Stadium Operations, 2005-2019 The following table shows the estimated regional economic impacts of the stadium and the baseball team on Corpus Christi over the 15-year period between 2005 and 2019. Total number of direct and indirect jobs 452 Number of direct and indirect workers moving to the area 40 Number of new residents in the area 50 Number of new residential properties built in the area 8 Number of new students in Corpus Christi ISD 6 Salaries earnings for direct and indirect employment Average annual salaries earnings $17,978,950 Taxable local sales and purchases (economic output) Average annual taxable local sales $25,851,134 Source: Impact DataSource, and author's calculations. Cumulated Economic Impacts, 2005-2019 $215,747,401 Average Annual Economic Data Estimates $310,213,604 Page 4 Costs and Benefits for Local Taxing Districts, 2005-2019 Additional Revenues for Local Taxing Districts Local taxing districts are estimated to have received the following revenues over the 15-year period as a result of the direct and indirect impacts of the stadium's operations: Utility Building Sales Property Franchise Permits and Taxes Taxes Utilities Fees Fees City of Corpus Christi $4,265,437 $121,134 $2,691,042 $161,628 $0 Corpus Christi Crime Control District $387,767 Corpus Christi MTA $1,551,068 Nueces County $0 $69,363 Corpus Christi ISD $256,099 Del Mar College $51,345 Nueces County Hospital District $28,450 Total $6,204,272 $526,391 $2,691,042 $161,628 $0 Additional State and Lease Hotel Other Taxes Federal Revenues Total Occupancy and User School from the Additional Taxes Fees Funding Facility Revenues City of Corpus Christi $547,536 $69,587 $900,000 $8,756,365 Corpus Christi Crime Control District $387,767 Corpus Christi MTA $1,551,068 Nueces County $34,587 $103,950 Corpus Christi ISD $469,713 $725,812 Del Mar College $51,345 Nueces County Hospital District $28,450 Total $547,536 $104,174 $469,713 $900,000 $10,704,757 Source: Impact DataSource, and author's calculations. Additional Revenues For Local Taxing Districts Over the 15-Year Period of the Stadium's Operations Page 5 Additional Costs for Local Taxing Districts Local taxing districts are estimated to have incurred the following costs over the 15-year period, a result of the direct and indirect impacts of the stadium's operations: Reduction in State School Funding as a Costs of Result of Costs of Providing Costs of Property Services to Monthly Educating being Added New Utility New to Local Residents Services Students Tax Rolls Total City of Corpus Christi $208,761 $2,691,042 $2,899,804 Corpus Christi Crime Control District $0 Corpus Christi MTA $0 Nueces County $69,174 $69,174 Corpus Christi ISD $354,894 $219,403 $574,297 Del Mar College $0 Nueces County Hospital District $0 Total $277,935 $2,691,042 $354,894 $219,403 $3,543,274 Source: Impact DataSource, and author's calculations. Costs for Local Taxing Districts Over the 15-Year Period of the Stadium's Operations Page 6 Net Benefits for Local Taxing Districts The estimated net benefits for the local taxing districts equal the additional public benefits less additional public costs, all as a result of the direct and indirect impacts of the stadium's operations: Benefits Costs Net Benefits City of Corpus Christi $8,756,365 $2,899,804 $5,856,562 Corpus Christi Crime Control District $387,767 $0 $387,767 Corpus Christi MTA $1,551,068 $0 $1,551,068 Nueces County $103,950 $69,174 $34,776 Corpus Christi ISD $725,812 $574,297 $151,515 Del Mar College $51,345 $0 $51,345 Nueces County Hospital District $28,450 $0 $28,450 Total $11,604,757 $3,543,274 $8,061,482 Source: Impact DataSource, and author's calculations. Present Values of the Tax Revenues for Local Taxing Districts The tax revenues for each local taxing district from the stadium's operations over the 12-year period: City of Corpus Christi $7,016,998 Corpus Christi Crime Control District $464,283 Corpus Christi MTA $1,857,134 Nueces County $42,025 Corpus Christi ISD $181,681 Del Mar College $61,767 Nueces County Hospital District $34,224 Total $9,658,112 Source: Impact DataSource, and author's calculations. The present value is a way of expressing a nominal figure of the past in today's dollar term. A dollar received in the past is not worth the same as a dollar received today due to inflation. This report expresses the present values of dollars in the past by adjusting the historical dollars for actual inflation using the Consumer Price Index (CPI) for U.S. urban areas. 15-Year Period of the Stadium's Operations Present Values of the Tax Revenues Over the 15-Year Period of the Stadium's Operations Net Benefits for Local Taxing Districts Over the Page 7 Net Benefits Received by the City The City of Corpus Christi is estimated to have received benefits from purchases for facility operations and spending by workers. The cumulated total benefits over the 15-year period are shown below. Stadium New Total Operations Workers Benefits Additional revenues: Sales taxes $3,648,399 $617,038 $4,265,437 Property taxes $0 $121,134 $121,134 Utility revenues $222,796 $118,213 $341,009 Utility franchise fees $15,184 $5,329 $20,513 Hotel occupancy taxes $547,536 $547,536 Other taxes and user fees $69,587 $69,587 Building permits and fees $0 $0 Lease revenues $900,000 $900,000 Total additional revenues $5,333,916 $931,301 $6,265,217 Additional costs: Costs of providing utilities $222,796 $118,213 $341,009 Costs of providing municipal services $208,761 $208,761 for new residents Total additional costs $222,796 $326,974 $549,771 Net benefits $5,111,120 $604,326 $5,715,446 Percent of total net benefits 89%11% for the City Source: Impact DataSource, and author's calculations. Schedule of Benefits for the City from the Stadium and Employees Benefits from: Page 8 Methodology For consistency, this report applies the same methodology and estimation framework as those used for the impact reports prepared by Impact DataSource in 2013 and 2015 for the same facility, "A Report of the Economic Impact of Whataburger Field and the Corpus Christi Hooks in Corpus Christi, Texas ". In 2017, an update was performed by the South Texas Economic Development Center. The main difference between this report and all those three previous reports is the time period for estimating the regional economic impacts. This report focuses on the impacts of the stadium's operations in the past, instead of performing future projections. Because of a different time period covered in this report, the regional economic multipliers for estimating economic impacts have been updated to reflect the historical data of the region. As for Impact DataSource, this analysis employs two types of economic multipliers for Corpus Christi. The multipliers generate estimates for secondary impacts, which include indirect and induced impacts. The multipliers for in this report are derived from the IMPLAN model and their values are: Employment multiplier:1.26 Wage Earnings multiplier:1.32 In addition, measures of the direct impact also reflect the data over the period covered in this analysis. Those estimates are presented in detail below. As for most related studies, this report presents analyses from the economic perspective of the stadium owner─the City of Corpus Christi─particularly about the returns on its initial capital investment. For this reason, the analyses focus on Whataburger Field and its home team's tangible contributions to the city and the local economy. Missing in this report is the extent to which the facility and the team have enhanced the quality of life for the local community as well as out-of-town visitors to baseball games and other events. Page 9 Data and Assumptions The following lists the local data and assumptions used in the 2013 and 2015 reports of Impact DataSource, along with updates for this report to reflect historical data. Page 10 Local Tax Rates: Sales taxes: City of Corpus Christi 1.375% Corpus Christi Crime Control District 0.125% Corpus Christi MTA 0.5% Nueces County 0.0% City of Corpus Christi hotel occupancy tax rate 9% Property tax rates, per $100 of valuation: City of Corpus Christi $0.585264 Nueces County and Farm to Market Road $0.335130 Corpus Christi ISD: M&O $1.060050 I&S $0.177300 Total $1.237350 Del Mar College $0.248073 Nueces County Hospital District $0.137455 City Rates: Annual marginal cost of providing municipal services, excluding utilities, to $300 each new household Estimated annual other taxes and user fees to be collected by the city from $100 each new household -- those revenues that are in addition to sales and property taxes, utilities and utility franchise fees Annual increase expected in the city's other revenues and marginal costs 2.1% The city's estimated annual water, wastewater and garbage collection billings $1,560 per household Estimated Utility Monthly Service Billing Water $40 $480 Wastewater $35 $420 Solid waste $25 $300 Natural gas $30 $360 Estimated Annual Billing (Monthly billing x 12) Page 11 The city's cost of providing water, wastewater and solid waste services,100% as a percent of utility billings Annual increase expected in city-owned utility billings 2.1% The city's utility franchise fee percentages: Electricity utility franchise fee $0.002526 per KwH Electricity, estimated as percent of billings 2% Natural gas 0% Cable 5% Telephone monthly line access charge: Residential $2.16 Non-residential $4.86 Annual utility franchise fees collected from utility providers for each household $70.32 in the city as detailed below Monthly Utility Utility Utility Estimated Franchise Franchise Monthly Fee Fee Franchise Fee Collections Service Billing Percentage Collections Electricity $85 2%$1.70 $20.40 Cable $40 5%$2.00 $24.00 Telephone 1 line $2.16 $2.16 $25.92 County Rates: Annual marginal cost of providing county services to each new household $100 Annual miscellaneous taxes and user fees to be collected from each $50 new household, those county revenues other than property and sales taxes Annual increase expected in other county revenues and marginal costs 2% School District Rates: Estimated annual state, federal and other funding received by the district for $4,500 for each child enrolled Average annual cost of providing services to each child in the district $8,500 Estimated Annual Utility (Monthly collections x 12) Page 12 Average annual cost for each new child, as a percent of average annual cost 40% Annual marginal cost of providing services to each new child $3,400 Other Community Rates: Annual inflation rate (2005-2019 historical average)2.1% Discount rate used in analysis to compute discounted cash flows -2.1% Percent of a typical worker's salary that will be spent on taxable goods 26.0% and services Average taxable value of a new single family residence in the community $133,572 that will are built for some individuals moving to the city Percent annual increase in the taxable value of residential 3.8% property and commercial real property on local tax rolls Activities During the Stadium's Operations: The facility's taxable sales subject to sales tax: 2005 $12,000,000 2006 $12,000,000 2007 $12,000,000 2008 $12,000,000 2009 $12,000,000 2010 $12,000,000 2011 $12,000,000 2012 $12,000,000 2013 $12,000,000 2014 $12,000,000 2015 $12,000,000 2016 $12,000,000 2017 $12,000,000 2018 $12,000,000 2019 $12,000,000 Expected annual increase in taxable sales after the first year 0.0% Page 13 Estimated annual utilities at the facility: Solid Natural Water Wastewater Waste Electricity Gas Cable Telephone 2005 $24,000 $24,000 $24,000 $225,000 $12,000 $12,000 $120,000 2006 $24,720 $24,720 $24,720 $231,750 $12,360 $12,360 $123,600 2007 $25,462 $25,462 $25,462 $238,703 $12,731 $12,731 $127,308 2008 $26,225 $26,225 $26,225 $245,864 $13,113 $13,113 $131,127 2009 $27,012 $27,012 $27,012 $253,239 $13,506 $13,506 $135,061 2010 $27,823 $27,823 $27,823 $260,837 $13,911 $13,911 $139,113 2011 $28,657 $28,657 $28,657 $268,662 $14,329 $14,329 $143,286 2012 $29,517 $29,517 $29,517 $276,722 $14,758 $14,758 $147,585 2013 $30,402 $30,402 $30,402 $285,023 $15,201 $15,201 $152,012 2014 $31,315 $31,315 $31,315 $293,574 $15,657 $15,657 $156,573 2015 $32,254 $32,254 $32,254 $302,381 $16,127 $16,127 $161,270 2016 $33,222 $33,222 $33,222 $311,453 $16,611 $16,611 $166,108 2017 $34,218 $34,218 $34,218 $320,796 $17,109 $17,109 $171,091 2018 $35,245 $35,245 $35,245 $330,420 $17,622 $17,622 $176,224 2019 $36,302 $36,302 $36,302 $340,333 $18,151 $18,151 $181,511 Annual 3%3%3%3%3%3%3% increase Estimated number of telephone lines at the facility 15 The facility's estimated local taxable purchases of materials, supplies and services for its operations: 2005 $2,000,000 2006 $2,100,000 2007 $2,205,000 2008 $2,315,250 2009 $2,431,013 2010 $2,552,563 2011 $2,680,191 2012 $2,814,201 2013 $2,954,911 2014 $3,102,656 2015 $3,257,789 2016 $3,420,679 2017 $3,591,713 2018 $3,771,298 2019 $3,959,863 Expected annual increase in taxable purchases after the first year 5% Page 14 The facility's total taxable purchases and taxable utilities: Taxable Purchases of Supplies,Utilities Materials and Subject to Percent Taxable Services Sales Tax Taxable Utilities Total 2005 $2,000,000 $369,000 100%$369,000 $2,369,000 2006 $2,100,000 $380,070 100%$380,070 $2,480,070 2007 $2,205,000 $391,472 100%$391,472 $2,596,472 2008 $2,315,250 $403,216 100%$403,216 $2,718,466 2009 $2,431,013 $415,313 100%$415,313 $2,846,325 2010 $2,552,563 $427,772 100%$427,772 $2,980,335 2011 $2,680,191 $440,605 100%$440,605 $3,120,797 2012 $2,814,201 $453,823 100%$453,823 $3,268,024 2013 $2,954,911 $467,438 100%$467,438 $3,422,349 2014 $3,102,656 $481,461 100%$481,461 $3,584,118 2015 $3,257,789 $495,905 100%$495,905 $3,753,694 2016 $3,420,679 $510,782 100%$510,782 $3,931,461 2017 $3,591,713 $526,106 100%$526,106 $4,117,818 2018 $3,771,298 $541,889 100%$541,889 $4,313,187 2019 $3,959,863 $558,146 100%$558,146 $4,518,009 Number of new workers at the facility: 2005 200 2006 0 2007 0 2008 0 2009 0 2010 0 2011 0 2012 0 2013 0 2014 0 2015 0 2016 0 2017 0 2018 0 2019 0 Total 200 Utilities Subject to Sales Tax Page 15 Number of people who moved to the city to take job at the facility: Estimated percent of total new workers moving to the city 10% 2005 20 2006 0 2007 0 2008 0 2009 0 2010 0 2011 0 2012 0 2013 0 2014 0 2015 0 2016 0 2017 0 2018 0 2019 0 Total 20 Average annual salaries of workers at the facility $25,000 Percent of expected increase in employee salaries after year 1 3.0% Multipliers for calculating the number of indirect and induced jobs and earnings in the area: Earnings 1.32 Employment 1.26 This cost-benefit analysis uses the above multipliers to project the indirect and induced benefits in the community as a result of the direct economic activity. The employment multiplier shows the number of spin-off jobs what will be created from each direct job. Similarly, the earnings multiplier estimates the salaries and wages to be paid to workers in these spin-off jobs for each $1 paid to direct workers. Visiting team members who will stay in a local motel during the baseball season: Average number of room nights 2,000 Estimated nightly room rate in the City $110 Estimated taxable spending by visiting team members shopping, $300,000 eating out and on entertainment Page 16 Spending by all out-of-town visitors attending games and other events at the stadium: Estimated number of out-of-town visitors attending games and other 10,000 events at the stadium Average annual increase in the number of out-of-town visitors to the stadium 0% Average number of days that each of these visitors will stay in the city 1.5 Percent of out-of-town fans stay overnight in a local hotel/motel 30% Average number of nights that these overnight visitors stayed in a hotel/motel 0.30 in the city Estimated average daily non-lodging spending by each visitor in the city $65 Estimated daily room rate in the city $110 Summary of visitor spending: Lodging sales: Lodging Teams Others Total Sales 2005 2,000 1,500 3,500 $385,000 2006 2,000 1,500 3,500 $385,000 2007 2,000 1,500 3,500 $385,000 2008 2,000 1,500 3,500 $385,000 2009 2,000 1,500 3,500 $385,000 2010 2,000 1,500 3,500 $385,000 2011 2,000 1,500 3,500 $385,000 2012 2,000 1,500 3,500 $385,000 2013 2,000 1,500 3,500 $385,000 2014 2,000 1,500 3,500 $385,000 2015 2,000 1,500 3,500 $385,000 2016 2,000 1,500 3,500 $385,000 2017 2,000 1,500 3,500 $385,000 2018 2,000 1,500 3,500 $385,000 2019 2,000 1,500 3,500 $385,000 Taxable sales: Teams Others Total 2005 $300,000 $978,000 $1,278,000 2006 $300,000 $978,000 $1,278,000 2007 $300,000 $978,000 $1,278,000 Room Nights Page 17 2008 $300,000 $978,000 $1,278,000 2009 $300,000 $978,000 $1,278,000 2010 $300,000 $978,000 $1,278,000 2011 $300,000 $978,000 $1,278,000 2012 $300,000 $978,000 $1,278,000 2013 $300,000 $978,000 $1,278,000 2014 $300,000 $978,000 $1,278,000 2015 $300,000 $978,000 $1,278,000 2016 $300,000 $978,000 $1,278,000 2017 $300,000 $978,000 $1,278,000 2018 $300,000 $978,000 $1,278,000 2019 $300,000 $978,000 $1,278,000 Estimated annual lease payments that the facility will make to the City over the next 25 years: 2005 $50,000 2006 $50,000 2007 $50,000 2008 $50,000 2009 $50,000 2010 $60,000 2011 $60,000 2012 $60,000 2013 $60,000 2014 $60,000 2015 $70,000 2016 $70,000 2017 $70,000 2018 $70,000 2019 $70,000 2020 $70,000 2021 $70,000 2022 $70,000 2023 $70,000 2024 $70,000 2025 $70,000 2026 $70,000 2027 $70,000 2028 $70,000 Page 18 Economic Impact Estimation The following shows economic impact estimates based on the schedules used in the 2013 and 2015 reports of Impact DataSource, along with updates for this report to reflect historical data. Page 19 Number of local jobs added each year and worker salaries to be paid: Direct Indirect Total Direct Indirect Total Jobs Jobs Jobs Salaries Salaries Salaries 2005 200 252 452 $5,000,000 $6,600,000 $11,600,000 2006 0 0 0 $5,150,000 $6,798,000 $11,948,000 2007 0 0 0 $5,304,500 $7,001,940 $12,306,440 2008 0 0 0 $5,463,635 $7,211,998 $12,675,633 2009 0 0 0 $5,627,544 $7,428,358 $13,055,902 2010 0 0 0 $5,796,370 $7,651,209 $13,447,579 2011 0 0 0 $5,970,261 $7,880,745 $13,851,007 2012 0 0 0 $6,149,369 $8,117,168 $14,266,537 2013 0 0 0 $6,333,850 $8,360,683 $14,694,533 2014 0 0 0 $6,523,866 $8,611,503 $15,135,369 2015 0 0 0 $6,719,582 $8,869,848 $15,589,430 2016 0 0 0 $6,921,169 $9,135,944 $16,057,113 2017 0 0 0 $7,128,804 $9,410,022 $16,538,826 2018 0 0 0 $7,342,669 $9,692,323 $17,034,991 2019 0 0 0 $7,562,949 $9,983,092 $17,546,041 Total 200 252 452 $92,994,569 $122,752,832 $215,747,401 Page 20 Number of direct and indirect workers and their families who moved to the area and their children who will attended local public schools: New Workers Total Total Who Moved to New New the Area Residents Students 2005 40 50 6 2006 0 0 0 2007 0 0 0 2008 0 0 0 2009 0 0 0 2010 0 0 0 2011 0 0 0 2012 0 0 0 2013 0 0 0 2014 0 0 0 2015 0 0 0 2016 0 0 0 2017 0 0 0 2018 0 0 0 2019 0 0 0 Total 40 50 6 Page 21 Number of new residential properties that would have been built in the city for direct and indirect workers who moved to the area: New Residential Properties 2005 8 2006 0 2007 0 2008 0 2009 0 2010 0 2011 0 2012 0 2013 0 2014 0 2015 0 2016 0 2017 0 2018 0 2019 0 Total 8 Page 22 Local taxable spending on which sales taxes will be collected: Local Construction Workers'The Facility's Spending and Direct and Local Furniture,Indirect Taxable Purchases Fixtures and Workers'Visitors'Sales at the and Taxable Equipment Spending Spending Facility Utilities Total 2005 $3,584,658 $2,412,800 $1,278,000 $12,000,000 $2,369,000 $21,644,458 2006 $9,507 $2,485,184 $1,278,000 $12,000,000 $2,480,070 $18,252,761 2007 $49,192 $2,559,740 $1,278,000 $12,000,000 $2,596,472 $18,483,404 2008 $26,859 $2,636,532 $1,278,000 $12,000,000 $2,718,466 $18,659,857 2009 $3,791 $2,715,628 $1,278,000 $12,000,000 $2,846,325 $18,843,744 2010 $2,369 $2,797,096 $1,278,000 $12,000,000 $2,980,335 $19,057,800 2011 $425 $2,881,009 $1,278,000 $12,000,000 $3,120,797 $19,280,231 2012 $3,825 $2,967,440 $1,278,000 $12,000,000 $3,268,024 $19,517,289 2013 $42,133 $3,056,463 $1,278,000 $12,000,000 $3,422,349 $19,798,944 2014 $100,231 $3,148,157 $1,278,000 $12,000,000 $3,931,461 $20,457,848 2015 $78,143 $3,242,601 $1,341,900 $12,600,000 $4,049,405 $21,312,049 2016 $90,889 $3,339,879 $1,408,995 $13,230,000 $4,170,887 $22,240,650 2017 $73,110 $3,440,076 $1,479,445 $13,891,500 $4,296,014 $23,180,144 2018 $87,004 $3,543,278 $1,553,417 $14,586,075 $4,424,894 $24,194,668 2019 $136,071 $3,649,576 $1,631,088 $15,315,379 $4,557,641 $25,289,755 Total $4,288,207 $44,875,459 $20,194,845 $189,622,954 $51,232,140 $310,213,604 Page 23 Local spending by visitors on lodging by out-of-town visitors Spending on Lodging 2005 $385,000 2006 $385,000 2007 $385,000 2008 $385,000 2009 $385,000 2010 $385,000 2011 $385,000 2012 $385,000 2013 $385,000 2014 $385,000 2015 $404,250 2016 $424,463 2017 $445,686 2018 $467,970 2019 $491,368 Total $6,083,736 Page 24 Taxable value of new residential property built for direct and indirect workers who moved to the community : Value of Property at New the Facility Total Residential on Local Taxable Property Tax Rolls Property 2005 $1,068,576 $0 $1,068,576 2006 $1,109,615 $0 $1,109,615 2007 $1,152,229 $0 $1,152,229 2008 $1,196,480 $0 $1,196,480 2009 $1,242,431 $0 $1,242,431 2010 $1,290,147 $0 $1,290,147 2011 $1,339,694 $0 $1,339,694 2012 $1,391,145 $0 $1,391,145 2013 $1,444,572 $0 $1,444,572 2014 $1,500,051 $0 $1,500,051 2015 $1,530,052 $0 $1,530,052 2016 $1,560,653 $0 $1,560,653 2017 $1,591,866 $0 $1,591,866 2018 $1,623,703 $0 $1,623,703 2019 $1,656,177 $0 $1,656,177 Page 25 Costs and Benefits Calculations The following shows economic impact estimates based on the schedules used in the 2013 and 2015 reports of Impact DataSource, along with updates for this report to reflect historical data. Page 26 City of Corpus Christi: Benefits: Sales tax collections: During Construction and On The Facility's Purchases of Direct and Local Furniture,Indirect On Taxable Purchases Fixtures and Workers'Visitors'Sales at the and Taxable Equipment Spending Spending Facility Utilities Total 2005 $49,289 $33,176 $17,573 $165,000 $32,574 $297,611 2006 $131 $34,171 $17,573 $165,000 $34,101 $250,975 2007 $676 $35,196 $17,573 $165,000 $35,701 $254,147 2008 $369 $36,252 $17,573 $165,000 $37,379 $256,573 2009 $52 $37,340 $17,573 $165,000 $39,137 $259,101 2010 $33 $38,460 $17,573 $165,000 $40,980 $262,045 2011 $6 $39,614 $17,573 $165,000 $42,911 $265,103 2012 $53 $40,802 $17,573 $165,000 $44,935 $268,363 2013 $579 $42,026 $17,573 $165,000 $47,057 $272,235 2014 $1,378 $43,287 $17,573 $165,000 $54,058 $281,295 2015 $1,074 $44,586 $18,451 $173,250 $55,679 $293,041 2016 $1,250 $45,923 $19,374 $181,913 $57,350 $305,809 2017 $1,005 $47,301 $20,342 $191,008 $59,070 $318,727 2018 $1,196 $48,720 $21,359 $200,559 $60,842 $332,677 2019 $1,871 $50,182 $22,427 $210,586 $62,668 $347,734 Total $58,963 $617,038 $277,679 $2,607,316 $704,442 $4,265,437 Page 27 Property tax collections on: New Total Taxes Residential Taxes Taxes After Property Collected Abated Abatement Total 2005 $6,254 $0 $0 $0 $6,254 2006 $6,494 $0 $0 $0 $6,494 2007 $6,744 $0 $0 $0 $6,744 2008 $7,003 $0 $0 $0 $7,003 2009 $7,272 $0 $0 $0 $7,272 2010 $7,551 $0 $0 $0 $7,551 2011 $7,841 $0 $0 $0 $7,841 2012 $8,142 $0 $0 $0 $8,142 2013 $8,455 $0 $0 $0 $8,455 2014 $8,779 $0 $0 $0 $8,779 2015 $8,955 $0 $0 $0 $8,955 2016 $9,134 $0 $0 $0 $9,134 2017 $9,317 $0 $0 $0 $9,317 2018 $9,503 $0 $0 $0 $9,503 2019 $9,693 $0 $0 $0 $9,693 Total $121,134 $0 $0 $0 $121,134 Property at the Facility Page 28 Utilities and utility franchise fees collected by the city from new residents and from the facility: Utility Franchise Utilities Fees Total 2005 $146,400 $8,788 $155,188 2006 $150,219 $9,017 $159,237 2007 $154,142 $9,253 $163,395 2008 $158,169 $9,496 $167,665 2009 $162,305 $9,745 $172,050 2010 $166,553 $10,000 $176,553 2011 $170,914 $10,263 $181,177 2012 $175,394 $10,532 $185,926 2013 $179,994 $10,809 $190,803 2014 $191,394 $11,499 $202,892 2015 $196,446 $11,803 $208,249 2016 $201,636 $12,116 $213,751 2017 $206,967 $12,437 $219,403 2018 $212,442 $12,766 $225,209 2019 $218,067 $13,105 $231,172 Total $2,691,042 $161,628 $2,852,670 Page 29 Other city revenues, including hotel occupancy taxes, other taxes and user fees collected from new residents and lease revenues Hotel Other Building Occupancy Taxes and Permits and Lease Total Other Taxes User Fees Fees Revenues Revenues 2005 $34,650 $4,000 $0 $50,000 $88,650 2006 $34,650 $4,083 $0 $50,000 $88,733 2007 $34,650 $4,168 $0 $50,000 $88,818 2008 $34,650 $4,255 $0 $50,000 $88,905 2009 $34,650 $4,344 $0 $50,000 $88,994 2010 $34,650 $4,434 $0 $60,000 $99,084 2011 $34,650 $4,527 $0 $60,000 $99,177 2012 $34,650 $4,621 $0 $60,000 $99,271 2013 $34,650 $4,717 $0 $60,000 $99,367 2014 $34,650 $4,815 $0 $60,000 $99,465 2015 $36,383 $4,916 $0 $70,000 $111,298 2016 $38,202 $5,018 $0 $70,000 $113,220 2017 $40,112 $5,122 $0 $70,000 $115,234 2018 $42,117 $5,229 $0 $70,000 $117,346 2019 $44,223 $5,338 $0 $70,000 $119,561 Total $547,536 $69,587 $0 $900,000 $1,517,123 Page 30 Costs: The costs of providing municipal services and utility services to new residents: Cost of Services to New Costs of Residents Utilities Total Costs 2005 $12,000 $146,400 $158,400 2006 $12,250 $150,219 $162,469 2007 $12,505 $154,142 $166,647 2008 $12,765 $158,169 $170,935 2009 $13,031 $162,305 $175,336 2010 $13,303 $166,553 $179,855 2011 $13,580 $170,914 $184,494 2012 $13,862 $175,394 $189,256 2013 $14,151 $179,994 $194,145 2014 $14,446 $191,394 $205,839 2015 $14,747 $196,446 $211,193 2016 $15,054 $201,636 $216,690 2017 $15,367 $206,967 $222,334 2018 $15,687 $212,442 $228,130 2019 $16,014 $218,067 $234,081 Total $208,761 $2,691,042 $2,899,804 Page 31 Net Benefits for the City of Corpus Christi: Net Cumulative Benefits Costs Benefits Net Benefits 2005 $547,703 $158,400 $389,303 $389,303 2006 $505,440 $162,469 $342,970 $732,273 2007 $513,104 $166,647 $346,457 $1,078,730 2008 $520,146 $170,935 $349,211 $1,427,941 2009 $527,416 $175,336 $352,080 $1,780,022 2010 $545,232 $179,855 $365,377 $2,145,399 2011 $553,298 $184,494 $368,804 $2,514,202 2012 $561,702 $189,256 $372,445 $2,886,648 2013 $570,860 $194,145 $376,715 $3,263,363 2014 $592,432 $205,839 $386,593 $3,649,956 2015 $621,543 $211,193 $410,350 $4,060,306 2016 $641,914 $216,690 $425,224 $4,485,530 2017 $662,681 $222,334 $440,347 $4,925,877 2018 $684,735 $228,130 $456,605 $5,382,482 2019 $708,161 $234,081 $474,079 $5,856,562 Total $8,756,365 $2,899,804 $5,856,562 Page 32 Corpus Christi Crime Control District: Sales tax collections: During Construction and On The Facility's Purchases of Direct and Local Furniture,Indirect On Taxable Purchases Fixtures and Workers'Visitors'Sales at the and Taxable Equipment Spending Spending Facility Utilities Total 2005 $4,481 $3,016 $1,598 $15,000 $2,961 $27,056 2006 $12 $3,106 $1,598 $15,000 $3,100 $22,816 2007 $61 $3,200 $1,598 $15,000 $3,246 $23,104 2008 $34 $3,296 $1,598 $15,000 $3,398 $23,325 2009 $5 $3,395 $1,598 $15,000 $3,558 $23,555 2010 $3 $3,496 $1,598 $15,000 $3,725 $23,822 2011 $1 $3,601 $1,598 $15,000 $3,901 $24,100 2012 $5 $3,709 $1,598 $15,000 $4,085 $24,397 2013 $53 $3,821 $1,598 $15,000 $4,278 $24,749 2014 $125 $3,935 $1,598 $15,000 $4,914 $25,572 2015 $98 $4,053 $1,677 $15,750 $5,062 $26,640 2016 $114 $4,175 $1,761 $16,538 $5,214 $27,801 2017 $91 $4,300 $1,849 $17,364 $5,370 $28,975 2018 $109 $4,429 $1,942 $18,233 $5,531 $30,243 2019 $170 $4,562 $2,039 $19,144 $5,697 $31,612 Total $5,360 $56,094 $25,244 $237,029 $64,040 $387,767 Page 33 Corpus Christi MTA: Sales tax collections: During Construction and On The Facility's Purchases of Direct and Local Furniture,Indirect On Taxable Purchases Fixtures and Workers'Visitors'Sales at the and Taxable Equipment Spending Spending Facility Utilities Total 2005 $17,923 $12,064 $6,390 $60,000 $11,845 $108,222 2006 $48 $12,426 $6,390 $60,000 $12,400 $91,264 2007 $246 $12,799 $6,390 $60,000 $12,982 $92,417 2008 $134 $13,183 $6,390 $60,000 $13,592 $93,299 2009 $19 $13,578 $6,390 $60,000 $14,232 $94,219 2010 $12 $13,985 $6,390 $60,000 $14,902 $95,289 2011 $2 $14,405 $6,390 $60,000 $15,604 $96,401 2012 $19 $14,837 $6,390 $60,000 $16,340 $97,586 2013 $211 $15,282 $6,390 $60,000 $17,112 $98,995 2014 $501 $15,741 $6,390 $60,000 $19,657 $102,289 2015 $391 $16,213 $6,710 $63,000 $20,247 $106,560 2016 $454 $16,699 $7,045 $66,150 $20,854 $111,203 2017 $366 $17,200 $7,397 $69,458 $21,480 $115,901 2018 $435 $17,716 $7,767 $72,930 $22,124 $120,973 2019 $680 $18,248 $8,155 $76,577 $22,788 $126,449 Total $21,441 $224,377 $100,974 $948,115 $256,161 $1,551,068 Page 34 Nueces County: Sales tax collections on spending: During Construction and On The Facility's Purchases of Direct and Local Furniture,Indirect On Taxable Purchases Fixtures and Workers'Visitors'Sales at the and Taxable Equipment Spending Spending Facility Utilities Total 2005 $0 $0 $0 $0 $0 $0 2006 $0 $0 $0 $0 $0 $0 2007 $0 $0 $0 $0 $0 $0 2008 $0 $0 $0 $0 $0 $0 2009 $0 $0 $0 $0 $0 $0 2010 $0 $0 $0 $0 $0 $0 2011 $0 $0 $0 $0 $0 $0 2012 $0 $0 $0 $0 $0 $0 2013 $0 $0 $0 $0 $0 $0 2014 $0 $0 $0 $0 $0 $0 2015 $0 $0 $0 $0 $0 $0 2016 $0 $0 $0 $0 $0 $0 2017 $0 $0 $0 $0 $0 $0 2018 $0 $0 $0 $0 $0 $0 2019 $0 $0 $0 $0 $0 $0 Total $0 $0 $0 $0 $0 $0 Page 35 Miscellaneous taxes and user fees to be collected from new residents: Misc. Taxes and User Fees 2005 $2,000 2006 $2,040 2007 $2,081 2008 $2,122 2009 $2,165 2010 $2,208 2011 $2,252 2012 $2,297 2013 $2,343 2014 $2,390 2015 $2,438 2016 $2,487 2017 $2,536 2018 $2,587 2019 $2,639 Total $34,587 Page 36 Property tax collections on: New Total Taxes Residential Taxes Taxes After Property Collected Abated Abatement Total 2005 $3,581 $0 $0 $0 $3,581 2006 $3,719 $0 $0 $0 $3,719 2007 $3,861 $0 $0 $0 $3,861 2008 $4,010 $0 $0 $0 $4,010 2009 $4,164 $0 $0 $0 $4,164 2010 $4,324 $0 $0 $0 $4,324 2011 $4,490 $0 $0 $0 $4,490 2012 $4,662 $0 $0 $0 $4,662 2013 $4,841 $0 $0 $0 $4,841 2014 $5,027 $0 $0 $0 $5,027 2015 $5,128 $0 $0 $0 $5,128 2016 $5,230 $0 $0 $0 $5,230 2017 $5,335 $0 $0 $0 $5,335 2018 $5,442 $0 $0 $0 $5,442 2019 $5,550 $0 $0 $0 $5,550 Total $69,363 $0 $0 $0 $69,363 Property at the Facility Page 37 Costs of providing county services to new residents: Costs of County Services 2005 $4,000 2006 $4,080 2007 $4,162 2008 $4,245 2009 $4,330 2010 $4,416 2011 $4,505 2012 $4,595 2013 $4,687 2014 $4,780 2015 $4,876 2016 $4,973 2017 $5,073 2018 $5,174 2019 $5,278 Total $69,174 Page 38 Total Benefits for the County: Cumulative Net Net Benefits Costs Benefits Benefits 2005 $5,581 $4,000 $1,581 $1,581 2006 $5,759 $4,080 $1,679 $3,260 2007 $5,942 $4,162 $1,781 $5,040 2008 $6,132 $4,245 $1,887 $6,928 2009 $6,329 $4,330 $1,999 $8,927 2010 $6,532 $4,416 $2,116 $11,042 2011 $6,742 $4,505 $2,237 $13,280 2012 $6,960 $4,595 $2,365 $15,644 2013 $7,185 $4,687 $2,498 $18,142 2014 $7,417 $4,780 $2,637 $20,779 2015 $7,566 $4,876 $2,690 $23,469 2016 $7,717 $4,973 $2,743 $26,212 2017 $7,871 $5,073 $2,798 $29,011 2018 $8,029 $5,174 $2,854 $31,865 2019 $8,189 $5,278 $2,911 $34,776 Total $103,950 $69,174 $34,776 Page 39 Corpus Christi Independent School District: Benefits, including property taxes and additional state and federal school funding: Property Tax Collections on:Additional New The State Residential Facility's Total School Property Property Collections Funding Total 2005 $13,222 $0 $13,222 $27,000 $40,222 2006 $13,730 $0 $13,730 $27,562 $41,292 2007 $14,257 $0 $14,257 $28,136 $42,393 2008 $14,805 $0 $14,805 $28,722 $43,527 2009 $15,373 $0 $15,373 $29,320 $44,693 2010 $15,964 $0 $15,964 $29,931 $45,894 2011 $16,577 $0 $16,577 $30,554 $47,131 2012 $17,213 $0 $17,213 $31,190 $48,404 2013 $17,874 $0 $17,874 $31,840 $49,714 2014 $18,561 $0 $18,561 $32,503 $51,064 2015 $18,932 $0 $18,932 $33,180 $52,112 2016 $19,311 $0 $19,311 $33,871 $53,181 2017 $19,697 $0 $19,697 $34,576 $54,273 2018 $20,091 $0 $20,091 $35,296 $55,387 2019 $20,493 $0 $20,493 $36,031 $56,524 Total $256,099 $0 $256,099 $469,713 $725,812 Page 40 Costs of educating children of new workers who move to the district: Cost of Educating New Students 2005 $20,400 2006 $20,825 2007 $21,258 2008 $21,701 2009 $22,153 2010 $22,614 2011 $23,085 2012 $23,566 2013 $24,057 2014 $24,558 2015 $25,069 2016 $25,591 2017 $26,124 2018 $26,668 2019 $27,224 Total $354,894 Page 41 Reduction in State aid to the school district as a result of new residential property for the facility's employees and the facility's property being added to the school district's tax rolls: Reduction in State Aid for the School District 2005 $11,327 2006 $11,762 2007 $12,214 2008 $12,683 2009 $13,170 2010 $13,676 2011 $14,201 2012 $14,747 2013 $15,313 2014 $15,901 2015 $16,219 2016 $16,544 2017 $16,875 2018 $17,212 2019 $17,556 Total $219,403 Page 42 Net Benefits for the School District: Net Cumulative Benefits Costs Benefits Net Benefits 2005 $40,222 $31,727 $8,495 $8,495 2006 $41,292 $32,587 $8,705 $17,199 2007 $42,393 $33,473 $8,921 $26,120 2008 $43,527 $34,384 $9,142 $35,262 2009 $44,693 $35,323 $9,370 $44,632 2010 $45,894 $36,291 $9,604 $54,236 2011 $47,131 $37,287 $9,844 $64,080 2012 $48,404 $38,313 $10,091 $74,171 2013 $49,714 $39,370 $10,344 $84,515 2014 $51,064 $40,459 $10,605 $95,120 2015 $52,112 $41,288 $10,823 $105,944 2016 $53,181 $42,135 $11,047 $116,990 2017 $54,273 $42,999 $11,274 $128,264 2018 $55,387 $43,880 $11,507 $139,771 2019 $56,524 $44,780 $11,744 $151,515 Total $725,812 $574,297 $151,515 Page 43 Del Mar College Property tax collections: New Total Taxes Residential Taxes Taxes After Property Collected Abated Abatement Total 2005 $2,651 $0 $0 $0 $2,651 2006 $2,753 $0 $0 $0 $2,753 2007 $2,858 $0 $0 $0 $2,858 2008 $2,968 $0 $0 $0 $2,968 2009 $3,082 $0 $0 $0 $3,082 2010 $3,201 $0 $0 $0 $3,201 2011 $3,323 $0 $0 $0 $3,323 2012 $3,451 $0 $0 $0 $3,451 2013 $3,584 $0 $0 $0 $3,584 2014 $3,721 $0 $0 $0 $3,721 2015 $3,796 $0 $0 $0 $3,796 2016 $3,872 $0 $0 $0 $3,872 2017 $3,949 $0 $0 $0 $3,949 2018 $4,028 $0 $0 $0 $4,028 2019 $4,109 $0 $0 $0 $4,109 Total $51,345 $0 $0 $0 $51,345 Property at the Facility Page 44 Nueces County Hospital District Property tax collections: New Total Taxes Residential Taxes Taxes After Property Collected Abated Abatement Total 2005 $1,469 $0 $0 $0 $1,469 2006 $1,525 $0 $0 $0 $1,525 2007 $1,584 $0 $0 $0 $1,584 2008 $1,645 $0 $0 $0 $1,645 2009 $1,708 $0 $0 $0 $1,708 2010 $1,773 $0 $0 $0 $1,773 2011 $1,841 $0 $0 $0 $1,841 2012 $1,912 $0 $0 $0 $1,912 2013 $1,986 $0 $0 $0 $1,986 2014 $2,062 $0 $0 $0 $2,062 2015 $2,103 $0 $0 $0 $2,103 2016 $2,145 $0 $0 $0 $2,145 2017 $2,188 $0 $0 $0 $2,188 2018 $2,232 $0 $0 $0 $2,232 2019 $2,276 $0 $0 $0 $2,276 Total $28,450 $0 $0 $0 $28,450 Property at the Facility Page 45 Page 1 of 43 2nd Amended Restated Stadium Lease Draft SECOND AMENDED AND RESTATED STADIUM LEASE AGREEMENT This Second Amended and Restated Stadium Lease Agreement (“Lease”) is made and entered into this day of , ____, by and between the CITY OF CORPUS CHRISTI, TEXAS (“City”), a Texas home rule municipal corporation, and CORPUS CHRISTI BASEBALL CLUB, LP (“Lessee”), a limited partnership organized and existing under the laws of the State of Texas (the City and Lessee are sometimes referred to herein individually as a “Party” and collectively as the “Parties”); W I T N E S S E T H: WHEREAS, City and Round Rock Baseball, Inc. (RRB) entered into a stadium lease agreement, approved by Corpus Christi City Council by Ordinance No. 025662 on April 24, 2004, (“Original Lease”) under which RRB leased from City the Leased Premises (hereinafter defined) for a base lease term of fifteen (15) years from the Commencement Date (hereinafter defined) plus two (2) additional optional five (5) year lease extensions; and WHEREAS, the Parties entered into an amendment to the Original Lease, approved by Corpus Christi City Council by Ordinance No. 027476 on November 13, 2007; WHEREAS, Lessee is the successor-in-interest to RRB under the Original Lease pursuant to that certain Assignment from RRB to Lessee dated June 3, 2011; and WHEREAS, the Parties entered into a First Amended and Restated Stadium Lease Agreement, approved by Corpus Christi City Council by Ordinance 029941 on August 27, 2013; and WHEREAS, the Baseball Stadium (Leased Premises) needs enhancements, upgrades and repairs; and WHEREAS, Lessee previously agreed to spend no less than Three Hundred Fifty Thousand Dollars ($350,000) annually on such Capital Repair Work, capital improvements, facilities maintenance, enhancements, upgrades and repairs to the Leased Premises, to be approved by City as described herein, beginning in the year 2013 and through the end of this amended Lease’s Term, and further agreed to extend the base Lease Term from fifteen (15) years to thirty (30) years, and to make corresponding rent payments, in consideration for City reimbursing Lessee up to One Hundred Seventy Five Thousand Dollars ($175,000) annually after completion of and Lessee’s payment for such enhancements, upgrades and repairs to the Leased Premises; and WHEREAS, City and Lessee now wish to amend the Original Lease (as amended November 13, 2007 and August 27, 2013) and to fully restate in this Lease the terms and conditions therein in order to provide additional funding for proper maintenance, enhancements and upgrades necessary to ensure the long-term sustainability of the City property which comprise the Leased Premises. NOW THEREFORE, in consideration of the rents herein required to be made by Lessee, and the covenants and agreements hereinafter contained to be kept and performed by the City and Lessee, the City does by these presents demise, lease and let unto Lessee, for the term and upon and subject to the terms and conditions hereinafter stated, the Leased Premises: ARTICLE I DEFINITIONS Section 1.1. Definitions. In addition to terms defined elsewhere in this Lease, the following terms, for the Page 2 of 43 2nd Amended Restated Stadium Lease Draft purposes of this Lease, shall have the meanings set forth below: (a) “Abandonment of Leased Premises” means that the Leased Premises become vacant or deserted for a continuous period of sixty (60) days. (b) “Act of Bankruptcy” means the commencement of a bankruptcy or similar proceeding by or against the City or Lessee, including, but not limited to, the following: the making of a general assignment for the benefit of creditors, the commencing of a voluntary or involuntary case under the Federal Bankruptcy Code or the filing of a petition thereunder, petitioning or applying to any tribunal for the appointment of, or the appointment of, a receiver, or any trustee for a substantial part of the assets of such person, commencing any proceeding under any bankruptcy, reorganization, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; provided, however, that with respect to the filing of an involuntary petition in Bankruptcy or other involuntary commencement of a bankruptcy or similar proceeding, such petition or proceeding shall fail to be dismissed within ninety (90) days of its filing or commencement. (c) “Affiliate” means a Person who (i) directly or indirectly controls, is controlled by or under common control with, Lessee; (ii) owns directly or indirectly ten percent (10%) or more of the equity interests of Lessee; or (iii) is a general partner, officer, director, non-financial institution trustee or fiduciary of Lessee or of any person described in clauses (i) or (ii). For purposes of this definition, the term “control” (including the terms “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether though ownership of voting securities, by contract, or otherwise. (d) “Approved Procurement Practices” means purchasing of goods and services conducted in a manner that assures the City that the funds are being spent prudently and in accordance with the Purchasing Policy . Any goods or services purchased shall be done so in accordance with the Purchasing Policy. Purchasing processes shall be subject to audit by the City. All purchases of fixtures and capital improvements shall be purchased by Lessee as purchasing agent for the City, and such purchases shall be in the name of the City. (e) “Architect” means HKS, Inc. (f) “Architect’s Contract” means the services contract between the City and the Architect, and approved by Lessee, for, among other things, the design of the Project Improvements, the preparation of the Project Plans, and construction administration services, as the same may be amended, supplemented, modified, renewed, extended or replaced from time to time with the consent of the City and Lessee. (g) “Authorized Representatives” means such officers, employees or other representatives of the City and Lessee, respectively, authorized by such party to act on its behalf under Section 13.14 of this Lease as certified to the other in writing. (h) “Baseball Stadium” means the baseball stadium, which was constructed on the Land. (i) “Business Day” means any day which is not a Sunday, a Saturday, or a legal holiday of the City. (j) “Capital Repair Work” shall have the meaning ascribed to it in Section 7.1. (k) “City” means the City of Corpus Christi, Texas, a home-rule city organized and existing under the laws of the State. Page 3 of 43 2nd Amended Restated Stadium Lease Draft (l) “City Default” shall have the meaning ascribed to it in Section 11.1. (m) “City’s Contribution” shall mean the maximum sum of $21,500,000.00 toward the payment of Project Costs. Notwithstanding anything herein to the contrary, the Parties understand that the City is under no obligation to spend more than $21,500,000.00 for Project Costs. (n) “City’s Remedial Work” shall have the meaning ascribed to it in Section 13.13. (o) “Commencement Date” means April 4, 2005, that being the date on which Lessee opened the Baseball Stadium for an open to the public general admission event. (p) “Comparable Facilities” means the minor league baseball stadiums in Round Rock, Texas (Dell Diamond), and Frisco, Texas; provided, however, that in determining compliance with any “Comparable Facilities” standard or requirement set forth in this Lease (i) such stadiums shall be looked at together and no one stadium nor any individual system or component at any such stadium shall be looked at alone and (ii) if the standards applicable to such stadiums or substantially similar quality stadiums taken as a whole should materially change during the Term in such a manner as to result in a material variation in the manner in which the stadiums had previously been operated or maintained and such change has a material and adverse impact on Lessee’s costs to operate and maintain the Leased Premises, then Lessee shall not be required to adopt such increased standards. (q) “Corporation” means the Corpus Christi Business and Job Development Corporation, a nonstock, nonprofit industrial development corporation created by the City under the laws of the State, including specifically Section 4A of Article 5190.6 Texas Revised Civil Statutes. (r) “Corporation Project Agreement” means the Project Agreement dated September 30, 2003, between the City and the Corporation executed in connection with the issuance of obligations by the Corporation to fund the City’s Contribution. (s) “Concession Improvements” means the interior and exterior improvements, build out and equipment required or desired by Lessee for concession operations. (t) “Controversy” shall have the meaning ascribed to it in Section 13.14. (u) “Default Rate” means the lesser of (i) the Prime Rate plus three percent (3%) and (ii) the maximum per annum rate of interest permitted to be charged either party by applicable law. (v) “Dispute” shall have the meaning ascribed to it in Section 13.14. (w) “Effective Date” means April 24, 2004. (x) “Event of Default” shall have the meaning ascribed to it in Article XI. (y) “Final Completion” means the final completion of all aspects of such work and improvements in accordance with all Governmental Rules and in accordance with the requirements for the same contained in this Lease and the Project Construction Documents and Minimum Stadium Requirements, including, Page 4 of 43 2nd Amended Restated Stadium Lease Draft but not limited to, the completion of all punch-list items. Substantial Completion of such work and improvements is a prerequisite to Final Completion of the same. (z) “Final Notice” shall have the meaning ascribed to it in Section 11.5. (aa) “Force Majeure” means the occurrence of any of the following, but only for the period of time, if any, that the performance of a Party’s material obligations under this Lease are actually delayed or prevented thereby: Acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States of America, or of any state thereof, or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, tornadoes, storms, floods, washouts, droughts, arrests, restraining of government and people, civil disturbances, explosions, nuclear accidents, wars, part or entire failure of utilities, shortages of labor, material, supplies or transportation, or any other cause not reasonably within the control of the party claiming inability to perform due to such cause. (bb) “Governmental Authority” means any federal, state or local government, agency, court, commission or other body with jurisdiction of the matter in question. (cc) “Hazardous Materials” means any substance or material, including asbestos, now or hereafter defined or listed by any Governmental Authority as a regulated or hazardous substance, material, or waste and shall include, without limitation, petroleum products. (dd) “Land” means the land described as “Lot 2” on Exhibit “A” attached hereto and made a part hereof. (ee) “Lease Year” means each consecutive twelve (12) month period commencing on the Commencement Date and thereafter on each anniversary of the Commencement Date. (ff) “Leased Premises” means (i) the Land; (ii) the Baseball Stadium; and (iii) any other buildings, structures, additions, improvements, equipment, fixtures and facilities directly related to the Baseball Stadium, and all appurtenances to the same, which are in the future constructed on the Land, pursuant to the terms and conditions herein. (gg) “Lessee” means Corpus Christi Baseball Club, L.P., a limited partnership duly organized and validly existing under the laws of the State and authorized to do business in the State, or any successor thereto or assignee thereof permitted by this Lease. (hh) “Lessee Default” shall have the meaning ascribed to it in Section 11.3. (ii) “Lessee Requested Modifications” shall have the meaning ascribed thereto in Section 3.6. (jj) “Lessee’s Contribution” means the aggregate sums, up to $3,000,000, that Lessee shall contribute to the Project which will first be used for construction of Concession Improvements, the equipping of the Project and other build out obligations of Lessee hereunder (including, but not limited to, the Minimum Lessee Improvement Requirements) and thereafter, at Lessee’s option, for Project construction in general. Notwithstanding anything herein to the contrary, the Parties understand that Lessee is under no obligation to contribute more than $3,000,000.00 for such purposes, provided such limit shall not apply to the Minimum Lessee Improvement Requirements. For purposes hereof, the term “contribute” shall mean and include, without limitation, monies paid to third parties by Lessee for build out and Concession Improvements, the fair value of equipment, machinery, tools and other property now owned by Lessee that is relocated to the Baseball Stadium and the value of equipment, furnishings and Concession Page 5 of 43 2nd Amended Restated Stadium Lease Draft Improvements provided to the Baseball Stadium by Lessee’s concessionaires or by Lessee’s other vendors. Upon completion of Lessee’s build out work or any termination of this Lease prior to completion of such work, Lessee shall notify the City in writing of the total amount of the Lessee’s Contribution and provide the City with supporting documentation reasonably necessary to verify Lessee’s determination of such amount. (kk) “Lessee’s Remedial Work” shall have the meaning ascribed to it in Section 13.12. (ll) “Minimum Lessee Improvement Requirements” means all improvements, fixtures, equipment, systems, facilities, features and amenities which are described and specifically identified as Lessee’s responsibility in the Project Plans approved by Lessee as of the Effective Date and, whether or not shown on such Project Plans, the items described on Exhibit “B” attached hereto and made a part hereof. (mm) “Minimum Stadium Requirements” means all improvements, fixtures, equipment, systems, facilities, features and amenities which are described in the Project Plans approved by Lessee as of the Effective Date and which are not specifically identified as Lessee’s responsibility and, whether or not shown on such Project Plans, the items described on Exhibit “C” attached hereto and made a part hereof. (nn) “Mortgage” shall have the meaning ascribed to it in Section 10.5. (oo) “Operating Expenses” shall mean the costs to operate, repair, and maintain the Project Improvements. (pp) “Parking Area” means the lands adjacent to the Land identified as “Lot 1” and the “South Parking Area” on Exhibit “A” attached hereto and made a part hereof. (qq) “Parking Area Master Lease” means that certain lease from the Port (as lessor) to the City (as lessee) covering the Parking Area. (rr) “Parking Area Sublease” means the sublease from the City (as sublessor) to Lessee (as sublessee) covering the Parking Area. (ss) “Person” means any association, individual, corporation, governmental entity, partnership, joint venture, business association, estate or any other organization or entity. (tt) “Port” means the Port of Corpus Christi Authority and its successors and assigns. (uu) “Prime Rate” means the per annum rate of interest from time to time published by the Wall Street Journal as the “prime rate”. (vv) “Project” means the Baseball Stadium, together with all the other Project Improvements. (ww) “Project Budget” shall mean the total Project budget approved by Lessee, as from time to time amended with Lessee’s approval, for all Project Costs, broken down in reasonable detail by “hard” and “soft” cost categories, including, but not limited to, separate line items for debt service requirements (net of earned interest on invested funds), the amount payable under each of the Project Construction Documents, allowances, contingencies, and pre-opening expenses. (xx) “Project Change Order” shall have the meaning ascribed to it in Section 3.9. Page 6 of 43 2nd Amended Restated Stadium Lease Draft (yy) “Project Completion Date” means the later of (i) the date of Final Completion of all of the Project Improvements Work in accordance with all of the requirements of this and other transaction documents, (ii) payment in full of all Project Costs, and (iii) the Lease Commencement Date. (zz) “Project Construction Contract” means the construction contract between the City and the Project Contractor, and approved by Lessee, for the construction of the Project Improvements, as the same may be amended, supplemented, modified, renewed, extended or replaced from time to time with the consent of the City and Lessee. (aaa) “Project Contractor” means the general contractor selected by the City and approved by Lessee. (bbb) “Project Construction Documents” means any and all contracts, documents or other instruments entered into by or on behalf of the City, and approved by Lessee, for the design, management, monitoring or performance of the Project Improvements Work, including, but not limited to, the Architect’s Contract, Project Plans, and Project Construction Contracts. (ccc) “Project Costs” means all of the costs incurred or to be incurred on behalf of the City in order for the City to fulfill its obligations under this Lease to cause Final Completion of the Project Improvements Work, including, but not limited to: (a) Land acquisition costs; (b) all amounts payable under any of the Project Construction Documents; (c) costs to obtain necessary easements or rights of way; (d) the following City development costs and fees: structural steel inspection fee, oversize fee, regional detention fee, and water meter fee; (e) legal costs; (f) costs for project management services; (g) all other costs incurred by the City and paid to third parties to fulfill its obligations under the Lease and Project Construction Documents to develop, construct, equip or furnish the Project including management fees and fees and expenses of architects, engineers, testing firms, accountants, attorneys, and other consultants necessary to complete the design, development, construction, equipping and furnishing of the Project Improvements, including Project Change Orders approved by Lessee; (h) all other costs in connection with the operation and maintenance of the Land prior to the Commencement Date, including all remediation and abatement costs arising from removal of Hazardous Materials or addressing environmental conditions; (i) all financing costs incurred by the Corporation on behalf of the City with respect to the Project including any reserve funds or capital or repair accounts; and (j) all insurance premiums on all policies of insurance required to be carried by the City under this Lease. Notwithstanding anything herein to the contrary, the City’s overall contribution to Project Costs shall not exceed $21,500,000.00. The term “Project Costs” excludes, however, any costs paid from the proceeds of insurance recoveries. (ddd) “Project Improvements” means the Baseball Stadium, the parking improvements and all other improvements, amenities and appurtenances to be situated on the Land (including the Minimum Stadium Requirements), all as described more fully in the Project Plans prepared by the Architect and approved by Lessee. (eee) “Project Improvements Work” means the design, development, construction, furnishing, equipping and placement in service and Final Completion of the Project Improvements at and within the Land in accordance with this Lease, the Project Construction Documents, the Minimum Stadium Requirements, all applicable Governmental Rules and the Project Plans. (fff) “Project Plans” means individually and collectively, the concept drawings, schematic drawings, design development drawings and detailed working drawings and specifications for the Project Improvements (including the Minimum Stadium Requirements) prepared by the Architect in the form approved by the City and Lessee. Page 7 of 43 2nd Amended Restated Stadium Lease Draft (ggg) “Purchasing Policy” means the policy attached hereto as Exhibit D. (hhh)“Rentals” shall have the meaning ascribed thereto in Section 4.3. (iii) “Removables” shall have the meaning ascribed thereto in Section 5.5. (jjj) “Sanctioning Association” means the Texas League, and the National Association of Professional Baseball Leagues, Inc., and their respective successors, if any, and any replacement or additional baseball association that Lessee certifies to the City is a nationally recognized baseball association that sanctions professional baseball teams affiliated with major league baseball. (kkk)“Seat Rights” shall have the meaning ascribed thereto in Section7.10. (lll) “State” means the State of Texas. (mmm) “Substantial Completion” (or “Substantially Complete”) means the stage in the progress of the Project Improvements Work when the Project Improvements Work is (i) sufficiently complete in accordance with the Project Construction Documents and Minimum Stadium Requirements so that Lessee can occupy and use the Project Improvements for their intended purpose, (ii) the Minimum Stadium Requirements and all other improvements, equipment and systems included in the Project Improvements are operational as designed and scheduled, (iii) all designated or required governmental inspections and certifications have been made and posted, (iv) the Project Contractor’s instruction of Lessee’s designated personnel in the operation of equipment and systems has been completed, (v) all final finishes contemplated by the Project Construction Documents and Minimum Stadium Requirements are in place and (vi) the only Project Improvements Work that remains is minor in nature, has been identified on a punch list approved by Lessee, and may be completed without interfering with Lessee’s operation of the Leased Premises. (nnn) “Target Substantial Completion Date” shall have the meaning ascribed thereto in Section 3.5. (ooo) “Targeted Tax” means any admission tax, parking tax, facility use tax and any other tax imposed by the City not in effect as of the date hereof that either by its terms or effect of its application is not of general application but is designed to be applicable to Lessee, the revenues from Lessee’s conduct of its business, the activities on the Leased Premises, or Lessee’s personnel. (ppp) “Team” means a minor league baseball franchise owned by Lessee or its Affiliate and approved by the Sanctioning Association to play baseball in the Baseball Stadium and which has a player development contract associated with a Major League Baseball franchise. (qqq) “Term” shall have the meaning ascribed thereto in Section 4.2. (rrr) “Unamortized Portion of the Lessee’s Contribution” shall mean, as of the date of determination thereof, the unamortized portion of the Lessee’s Contribution based on a ten (10) year straight line amortization of the actual total amount of the Lessee’s Contribution, prorated based on the number of days in the Lease Year to the extent the date of determination is not at the end of a Lease Year [i.e., the Unamortized Portion of Lessee’s Contribution shall be nine-tenths (9/10ths) of the actual total amount of the Lessee’s Contribution at the end of the first Lease Year and shall be eight-tenths (8/10ths) at the end of the second Lease Year and so on until the end of the tenth Lease Year at which time the Unamortized Portion of the Lessee’s Contribution shall be zero]. Page 8 of 43 2nd Amended Restated Stadium Lease Draft (sss) “Untenantable Condition” shall mean the existence of any one of the following conditions but only to the extent the same is not the result of the failure of Lessee to perform its obligations as required under this Lease: (i) The Leased Premises are not in compliance with rules and regulations in effect on the Effective Date of the applicable Sanctioning Association for any reason, the result of such non- compliance is that the Sanctioning Association, or its rules, prohibit Lessee or its Affiliate from conducting sanctioned games or authorizes the Sanctioning Association to assess fines or penalties, and the City fails to cause the same to be placed into compliance within a reasonable time following the City’s receipt of written notice of such non-compliance (the City hereby agreeing to perform such work as necessary to keep the Leased Premises in compliance, subject to the limitation on the City’s Contribution as provided herein); (ii) The use or occupancy of the Leased Premises for baseball games is not permitted under applicable governmental rule or is restricted in any material respect under applicable governmental rule, including, but not limited to, denial of access; or (iii) The use or occupancy of thirty percent (30%) or more of any of the public seating areas, other public areas, or parking areas, within the Leased Premises during the Team’s season is materially restricted by the City or are unusable (and not replaced by suitable temporary accommodations) for a period of ninety (90) consecutive days or ninety (90) days out of any consecutive one hundred eighty (180) day period; or (iv) The use or occupancy of thirty percent (30%) or more of the private suites or fifteen percent (15%) or more of the concession areas within the Leased Premises is materially restricted by the City or unusable during the Team’s season for a period of sixty (60) consecutive days or ninety (90) days out of any consecutive one hundred eighty (180) day period. (ttt) “Warranty Claim” shall have the meaning ascribed to it in Section 3.3 hereto. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties by the City. The City makes the following representations and warranties as the basis for the undertakings on its part herein contained: (a) The City is a home rule municipal corporation, existing and in good standing under the laws of the State, and has the power to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. By written ordinance, the City has duly approved the execution and delivery of this Lease. (b) The City has taken all action and has complied with all provisions of law with respect to the execution, delivery and performance of this Lease and each of the Project Construction Documents to which it is a party and the due authorization of the consummation of the transactions contemplated hereby and thereby, and this Lease and each of the Project Construction Documents to which it is a party have been duly executed and delivered by, and constitute the valid and legally binding obligation of, the City, enforceable against the City in accordance with their respective terms. (c) Neither the execution and delivery of this Lease or the Project Construction Documents to which the City is a party, the consummation of the transactions contemplated hereby or thereby, nor the fulfillment Page 9 of 43 2nd Amended Restated Stadium Lease Draft of or compliance with the terms and conditions of this Lease or such Project Construction Documents, violate any law or regulation, or any judicial order, judgment, decree, or injunction, conflict with or results in a breach of any of the terms, conditions or provisions of any restriction, ordinance or any agreement or instrument to which the City is now a party or by which it is bound, or constitute a default under any of the foregoing, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the City under the term of any instrument or agreement. (d) There is no litigation now pending or, to the City’s knowledge, threatened challenging the powers of the City or in any way affecting this Lease. (e) The execution and delivery of this Lease and each of the Project Construction Documents to which the City is a party, the consummation of any of the transactions contemplated hereby or thereby or compliance with the terms and provisions hereof or thereof do not and will not (i) violate any law or regulation or any order or decree of any court or governmental instrumentality applicable to the City, which violation would materially and adversely affect the ability of the City to perform its obligations under this Lease or any of the Project Construction Documents; (ii) conflict with or would result in the breach of, or constitute a default under, this Lease or any of the Project Construction Documents, or any other contract, lease, indenture, loan agreement, mortgage, deed of trust or other agreement or instrument to which the City is a party or by which the City or its property may be bound, which conflict, breach or default would materially and adversely affect the ability of the City to perform its obligations under this Lease or any Project Construction Document; or (iii) violate the charter, articles of incorporation or bylaws of the City. No consent, approval authorization or order of any governmental or regulatory authority, agency, commission or board of arbitration was or will be required in connection with the execution and delivery by the City of this Lease and the Project Construction Document to which it is a party or the consummation of the transactions contemplated hereby or thereby or compliance with the terms and provisions hereof or thereof, except such as have been obtained and are in full force and effect. (f) To the best of the City’s knowledge, no event has occurred and no condition currently exists, which constitutes or may, with the passage of time or the giving of notice, or both, constitute an Event of Default with respect to or on the part of the City under this Lease or any of the Project Construction Documents to which it is a party or that could materially adversely affect the ability of the City to perform its obligations hereunder or thereunder. (g) The Corporation has been duly created by the City, is in good standing under the laws of the State, and has the authority under State law to issue debt to fund the City’s Contribution. Section 2.2. Representations and Warranties by Lessee. Lessee makes the following representations and warranties as the basis for the undertakings on its part herein contained: (a) Lessee is a limited partnership duly organized under the laws of the State and duly qualified to do business in the State, is in good standing in the State, has power to execute and enter into this Lease and by proper corporate action has been duly authorized to execute and deliver this Lease. (b) Each of the agreements to which it is a party including this Lease, have been duly executed and delivered by duly authorized officers of Lessee, and constitute valid and binding obligations of Lessee, enforceable against Lessee in accordance with their respective terms. (c) Neither the execution and delivery of this Lease, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Lease, violate any law Page 10 of 43 2nd Amended Restated Stadium Lease Draft or regulation, or any judicial order, judgment, decree, or injunction, conflict with or results in a breach of any of the terms, conditions or provisions of any restriction, ordinance or any agreement or instrument to which Lessee is now a party or by which it is bound, or constitute a default under any of the foregoing, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of Lessee under the term of any instrument or agreement. (d) No approvals or consents, other than those that have been or will in normal course be obtained, are necessary in order for Lessee to execute and deliver this Lease. (e) There is no litigation now pending or, to Lessee's knowledge, threatened, challenging the corporate existence of Lessee and there is no pending, or to Lessee's knowledge, threatened action or proceeding before any court or administrative agency that individually (or in the aggregate in the case of any group of related lawsuits) is expected to have a material adverse effect on the financial condition of Lessee or the ability of Lessee to perform its obligations under this Lease. (f) The execution and delivery of this Lease, the consummation of any of the transactions contemplated hereby or compliance with the terms and provisions hereof do not and will not (i) violate any law or regulation or any order or decree of any court or governmental instrumentality applicable to Lessee or any of its Subsidiaries, which violation would materially and adversely affect the ability of Lessee to perform its obligations under this Lease; (ii) conflict with or would result in the breach of, or constitute a default under, this Lease, or any other contract, lease, indenture, loan agreement, mortgage, deed of trust or other agreement or instrument to which Lessee is a party or by which Lessee or its property may be bound, which conflict, breach or default would materially and adversely affect the ability of Lessee to perform its obligations under this Lease; or (iii) violate the charter, articles of incorporation or bylaws of Lessee. No consent, approval authorization or order of any governmental or regulatory authority, agency, commission or board of arbitration was or will be required in connection with the execution and delivery by Lessee of this Lease or the consummation of the transactions contemplated hereby or compliance with the terms and provisions hereof, except such as have been obtained and are in full force and effect. (g) Lessee has duly and validly obtained all material certificates, licenses and permits from all public authorities, both federal and state, required as of the Effective Date to enable Lessee to carry on its business as it is now conducted and to enter into this Lease. (h) To the best of Lessee’s knowledge, no event has occurred and no condition currently exists, which constitutes or may, with the passage of time or the giving of notice, or both, constitute an Event of Default with respect to or on the part of Lessee under this Lease or that could materially adversely affect the ability of Lessee to perform its obligations hereunder. (i) Lessee or its Affiliate owns and will continue to own a AA minor league baseball team approved by a Sanctioning Association that is affiliated with a major league baseball team; Lessee or its Affiliate shall locate such team in the City and play its regularly scheduled home games and post-season play-off home games at the Baseball Stadium (subject to temporary changes in “home” vs. “away” status as may be directed from time to time by the Sanctioning Association). ARTICLE III PROJECT DEVELOPMENT – COMPLETED The Parties acknowledge that construction of the Baseball Stadium has been completed and the Lessee has taken possession of the Leased Premises. To the extent that any provision in this Article III or elsewhere in Page 11 of 43 2nd Amended Restated Stadium Lease Draft this Lease references actions related to construction of the Baseball Stadium, apart from annual maintenance, Capital Repair Work, enhancements and upgrades contemplated by Article VII and any Alterations, or additional Improvements contemplated by Article V, the Parties agree that such provision has been performed and such work has been completed. Section 3.1. Project Design. The City will enter into the Architect’s Contract and shall be solely responsible for the payment of all fees and reimbursable expenses due and payable from time to time under the Architect’s Contract notwithstanding any contrary provision hereof. Subject to Force Majeure, the City shall be responsible for the timely completion of the design of the Project. The Project Plans shall be in compliance with applicable written rules and regulations of the Sanctioning Association in effect on the Effective Date and permit Final Completion of the Project Improvements Work for an amount not to exceed the City’s Contribution. Lessee shall have the right to approve the Architect’s Contract and the Project Plans and agrees to assist the City with respect to ensuring such compliance with the applicable rules and regulations of the Sanctioning Association. Section 3.2. Project Improvements. The City agrees to fund the Project Improvements in an amount not to exceed the City’s Contribution. Should Lessee require any changes to the Minimum Stadium Requirements or any changes to Project Plans that have been previously approved by Lessee in writing and such changes result in the Project Costs exceeding the City’s Contribution, Lessee agrees to be solely responsible for the payment of such amounts in excess of the City’s Contribution, and shall timely deposit with the City in such manner as the City and Lessee shall determine such additional amounts for the purpose of funding the Project Improvements. The City, with Lessee’s approval, shall enter into a Project Construction Contract with the best value for the Project Improvements Work for the Project Improvements, in accordance with this Lease, the Project Plans, the Minimum Stadium Requirements and all applicable Governmental Rules. The Project Plans (including detailed plans and specifications) shall be developed and prepared by the Architect at the City’s expense and direction and in cooperation with Lessee and submitted by the City to Lessee for its approval which will not be unreasonably withheld, conditioned or delayed (it being understood, however, that Lessee may withhold its approval in its sole discretion to the extent it believes that the City’s Contribution will not be sufficient to fully fund the construction of and cause the Final Completion of the Project Improvements in accordance with the Minimum Stadium Requirements). Lessee shall have ten (10) days to review the Project Plans and if they do not object within such time, they are deemed approved. In the event there is a dispute between the City and Lessee regarding the Project Plans, provided they (i) are in compliance with applicable written rules and regulations of the Sanctioning Association in effect on the Effective Date and (ii) include all of the Minimum Stadium Requirements, the City shall have the final approval of the Project Plans. Any changes to the final Project Plans shall be subject to the prior approval of the City and Lessee. Any replacement of the Project Contractor following a default by the Project Contractor shall be subject to the approval of Lessee. Section 3.3. Contract Requirements and Warranty Claims. The City shall ensure that the Project Construction Contract for the Project Improvements and all subcontracts for the supply of equipment or systems to the Project Contractor for the Project Improvements shall provide for the assignment of all warranties, maintenance agreements thereunder to Lessee and give Lessee the independent right to enforce the same as an express third party beneficiary thereunder, and permit Lessee to use (but not own) any plans and specifications to which the City is then entitled pursuant to any such contracts. The City covenants and agrees that without the prior consent of Lessee, which consent shall not be unreasonably withheld, conditioned or delayed, the City will not (i) voluntarily, involuntarily, by operation of law or otherwise, sell, assign or transfer any of the maintenance and warranty contracts to any person other than Lessee; (ii) terminate any of the maintenance and warranty contracts; (iii) waive or release any of the respective obligations of any person under any of the maintenance and warranty contracts; or (iv) in any way voluntarily modify or amend any of the maintenance and warranty contracts. Further, the City agrees Page 12 of 43 2nd Amended Restated Stadium Lease Draft that Lessee is a third-party beneficiary of the warranty contracts and hereby conveys, transfers and assigns to Lessee the nonexclusive right to enforce any and all of the respective obligations of any person under the maintenance and warranty contracts, including, but not limited to, any and all representations and warranties thereunder. The City and Lessee shall cooperate with each other in prosecuting any and all warranty and similar claims under any and all contracts or other agreements with third parties for the design, construction, supply, alteration, improvement, maintenance or renewal of the Project Improvements and Leased Premises, including, but not limited to, any and all such claims under the Project Construction Contract (each a “Warranty Claim”). All recoveries from any such Warranty Claims shall be applied, first, to the cost of collection, second, on a proportional basis to the City and Lessee to (x) reimburse Lessee for the cost and expenses incurred in order to repair, restore, renew or replace any part of the Project Improvements or Leased Premises as to which such Warranty Claim relates and which have not been paid out of the Capital Repair Work Account and (y) to reimburse the City for amounts paid to Lessee as the City’s expenses relating to such Warranty Claim. Section 3.4. Access to the Project. Lessee and its agents, contractors, sublessees, licensees, and concessionaires shall have the right of access at normal construction hours during the construction period, for themselves and their authorized representatives, to the Land and the Project Improvements and all portions thereof for the following purposes, without charges or fees or the commencement of rent under this Lease, provided Lessee and all such agents, contractors, sublessees, licensees, and concessionaires (i) notify the City in advance of such proposed entry by any of Lessee’s subtenants, licensees or concessionaires, (ii) do not hinder or interfere with the Project Improvements Work or the activities of the City’s contractors, (iii) take such reasonable protective precautions or measures as the City or the Project Contractor may reasonably request, given the stage of the Project Improvements Work at the time of such entry; and (iv) comply with the provisions of the Project Construction Contract relating to the City’s rights to access: (a) Conducting inspections for purposes of determining compliance with this Lease; (b) Construction and installation of any Concession Improvements and any other improvements permitted by the Lease so long as, in either case, Lessee does not unreasonably interfere with the construction of the Project Improvements Work by the Project Contractor; (c) Construction and installation of any interior tenant finish work, construction and installation of offices for Lessee, use of its offices for ticket sales and promotions and other normal and customary business, and equipping locker room and related facilities for Lessee; (d) Installation of any additional fixtures or equipment desired by Lessee; (e) Tours of the Land and Project Improvements sponsored by Lessee; and (f) The erection and maintenance of billboards and signs during the construction period consistent with Lessee’s naming rights and advertising rights under this Lease. Prior to RSR starting any work on the Leased Premises, it shall obtain and cause all of its contractors and subcontractors to obtain separate builder’s risk insurance coverage and comprehensive general liability insurance in amounts and upon terms acceptable to the City (but not exceeding the requirements the City imposes on contractors working on City property). Subject to compliance with the City’s ordinances related to occupancy of buildings, Lessee shall have the right to take possession of its offices (subject to the terms hereof) and use the same for the conduct of Lessee’s normal and customary business. Any entry, access or occupancy provided to Lessee pursuant to the terms of this Section 3.4 shall not be deemed to be acceptance of the Project Improvements Work or commence the Term. Lessee shall be responsible for all utility and other costs associated with taking possession of its offices. Lessee shall cooperate with the City in all aspects of the development and construction of the Baseball Stadium and not unreasonably hinder, delay or interfere with the development and construction of the Project Improvements. Section 3.5. Schedule for Substantial Completion and Liquidated Damages. The City shall cause Substantial Completion of the Project Improvements Work to occur on or before March 24, 2005 (the “Target Substantial Completion Date”). In addition, the City agrees to include in the Project Construction Contract a provision whereby the Project Contractor agrees to pay liquidated damages (i) in the amount of $1,000 per day for each day beyond the Target Substantial Completion Date that the Page 13 of 43 2nd Amended Restated Stadium Lease Draft Project Contractor fails to achieve Substantial Completion, and (ii) in the amount of $100,000 for each scheduled baseball game which Lessee is unable to conduct in the Project Improvements due to the failure of the Project Contractor to have achieved Substantial Completion on or before the Target Substantial Completion Date. For purposes hereof, Lessee will be deemed to be unable to conduct its first scheduled baseball game if Substantial Completion has not been achieved at least ten (10) days prior to the scheduled date of such opening or subsequent game and the $100,000 liquidated damages shall be due and payable for each such game even if the game is in fact played. Notwithstanding anything in this Lease, the Project Construction Documents or any other agreements related hereto to the contrary, Lessee agrees that Lessee’s sole remedy for any delay in Substantial Completion of the Project Improvements Work beyond the Target Substantial Completion Date is to obtain the liquidated damages from the Project Contractor; provided, however, that if Lessee does not actually receive the liquidated damages from the Project Contractor as contemplated hereby within ten (10) days of Lessee’s demand therefore, then Lessee shall have the right to offset all liquidated damage amounts that are due but not received by Lessee as contemplated hereby against the Rentals and/or any other amounts due or to become due to the City pursuant to this Lease; and provided, further, however, that if Substantial Completion has not occurred on or before April 24, 2005, Lessee shall have the right and option to terminate this Lease by written notice to the City and upon delivery of any such notice the City shall pay to Lessee the Unamortized Portion of Lessee’s Contribution (measured as of the date of termination) and Lessee shall have no further liability or responsibility to the City under or in connection with this Lease. Section 3.6. Lessee Requested Additions or Modifications. In the event that Lessee determines that it desires any additions or modifications to the Minimum Stadium Requirements or any changes to Project Plans that have been previously approved in writing by Lessee (“Lessee Requested Modifications”), Lessee shall submit a written request along with plans and specifications for the Lessee Requested Modifications to the City for its approval. In the event that the Lessee Requested Modification results in an increase in the Project Cost over and above the City’s Contribution, such increase shall be the sole responsibility of Lessee, and it will be the sole responsibility of Lessee to timely pay the cost of the Lessee Requested Modifications. After confirming Lessee’s commitment to pay such increase, the City shall direct the Project Contractor to perform the same. Section 3.7. Lessee Build Out. Lessee covenants and agrees that Lessee shall design, construct, and place in service the Concession Improvements, the suites and related build out obligations set forth herein (including the Minimum Lessee Improvement Requirements), or cause the same to be designed, constructed, and placed in service in accordance with the Project Plans and applicable Governmental Rules, all at Lessee’s sole cost and expense. Lessee agrees that when complete such improvements and facilities will be of a quality generally consistent with those contained in Comparable Facilities. Section 3.8. Performance and Payment Bonds. Prior to Lessee commencing any construction project estimated to cost greater than $500,000, Lessee shall provide to the City for its approval a statutory form payment and performance bond for such project. Section 3.9. Change Orders. No changes in plans or specifications shall be made to the Project, the Project Construction Contract, the Project Plans or Minimum Stadium Requirements unless agreed to in a written change order (“Project Change Order”) approved in writing by the City and Lessee. Unless otherwise agreed with respect to any specific Project Change Order, the Party submitting the proposed Project Change Order shall be responsible for all costs relating to such Project Change Order. ARTICLE IV LEASE OF LEASED PREMISES Section 4.1. Grant. Page 14 of 43 2nd Amended Restated Stadium Lease Draft (a) In consideration of and pursuant to the covenants, agreements, and conditions set forth herein, the City does hereby lease, let, demise, and rent exclusively unto Lessee, and Lessee does hereby rent and lease from the City, the Leased Premises. On the Commencement Date, the City will give and deliver to Lessee exclusive possession and occupancy of the Leased Premises free of all tenancies and parties in possession of such Leased Premises (other than those arising by, through or under Lessee) and free of Hazardous Materials. (For the purpose of this section and Section 13.26, the Leased Premises is considered free of Hazardous Materials, if it has been remediated to the satisfaction of the appropriate Governmental Authority.) The City, if necessary, will provide Lessee with the appropriate consent of the Governmental Authority that the Leased Premises meets the requisite standards of being free of Hazardous Materials. The City shall deliver the Leased Premises to Lessee on the Commencement Date in good condition and repair and in a clean and orderly condition. (b) The City covenants for the Term that Lessee, upon paying the Rentals and upon keeping, observing and performing the terms, covenants and condition of this Lease to be kept, observed and performed by Lessee, including, without limitation, the terms, covenants and conditions set forth in Article VI of this Lease, shall and may quietly and peaceably hold, occupy, use, and enjoy the Leased Premises without ejection or interference by or from the City, subject only to the terms and provisions set forth herein. (c) The City covenants that Lessee’s leasehold interest in, and other rights to, the Leased Premises arising under this Lease shall be senior and prior to any lien, lease or other encumbrance existing, created or arising in connection with the acquisition, development, construction or financing of the Leased Premises or the Project Improvements Work or any portion thereof. The foregoing does not extend to any liens, leases or encumbrances arising by, through or under Lessee or its agents acting in such capacity. Section 4.2. Term. The term (the “Term”) of this Lease shall commence upon the Commencement Date and shall continue for a period of thirty (30) years thereafter, unless earlier terminated in accordance with the terms hereof; provided, however, that if the expiration date of the Term shall fall during a baseball season, then the Term shall be automatically extended to the day that is sixty (60) days after the last home game (regular or post-season) of such season and the rental shall be prorated for such extension period based on the rental then in effect for such final Lease Year. Section 4.3. Rent. (a) Lessee agrees to pay annual rental for each Lease Year during the base Lease Term on or before the first day of each such Lease Year, as follows: Lease Years 1 – 5 - $50,000.00 per Lease Year Lease Years 6 – 10 - $60,000.00 per Lease Year Lease Years 11 – 15 - $70,000.00 per Lease Year Lease Years 16 – 20 - $80,000.00 per Lease Year Lease Years 21 – 25 - $90,000.00 per Lease Year Lease Years 26 – 30 - $100,000.00 per Lease Year (b) Lessee shall timely pay to the City the Rentals to be paid by Lessee to the City under this Lease, without deduction or setoff (except as otherwise expressly provided in this Lease), at the City’s address provided for in this Lease or as otherwise specified by the City in writing. Notwithstanding the foregoing, if tax-exempt debt is issued to fund the City’s Contribution, the City may reduce the Rentals if necessary to ensure compliance with the federal income tax laws applicable to tax-exempt debt. Section 4.4. Permitted Uses. Throughout the Term, Lessee shall occupy and use the Leased Premises for the primary purposes of conducting regularly scheduled and post-season home games played by the Team (including radio and television broadcasting or other transmission of same) in accordance with the rules and regulations of the Sanctioning Association. In addition to the foregoing, the permitted uses shall Page 15 of 43 2nd Amended Restated Stadium Lease Draft include the conducting of meetings, trade shows, exhibitions, concerts, public entertainment events, other baseball games and sporting events, and other similar traditional baseball functions that will encourage economic development and tourism in the City of Corpus Christi; and for purposes related and incidental thereto including, without limitation, operation of restaurants and concession facilities in and adjacent to the Baseball Stadium (during games and events and at other times), sale of food and beverages (alcoholic and non-alcoholic), conducting tours, storage, and office uses), and for any other lawful purpose that is not a prohibited use described in Section 4.7. Section 4.5. Compliance with Laws. (a) Lessee shall, throughout the Term, and at no expense to the City, promptly comply or cause compliance in all material respects with all laws, ordinances, orders, rules, regulations and requirements of duly constituted Governmental Authorities, which may be applicable from time to time to its use of the Leased Premises and its operation, repair and alteration thereof. (b) Lessee shall not, however, be required to comply or cause compliance with such laws, ordinances, orders, rules, regulations or requirements, if Lessee is, after prior written notice to the City, contesting the same or the validity thereof in good faith, at Lessee's expense by appropriate proceedings; and provided further, such noncompliance will not have a material adverse effect on the Leased Premises or Lessee or the performance of its obligations hereunder. Such contest may be made by Lessee in the name of the City or Lessee, or both, as Lessee shall reasonably determine, and the City shall, at Lessee's expense, cooperate with Lessee in any such contest to such extent as Lessee may reasonably request; provided, however, that Lessee may not contest in the name of the City any law, ordinance, rule, regulation, order or requirement of the City, and the City has no obligation to cooperate in any such contest against the City. The City shall not, however, be subject to any liability for the payment of any costs or expenses in connection with any such proceedings brought by Lessee, and Lessee covenants to pay, and to indemnify and save the City harmless from, any such costs or expenses, including, but not limited to, court costs and attorneys' fees. Section 4.6. Obligations of Lessee Unconditional. The obligations of Lessee under this Agreement including, but not limited to, the obligations to pay the Rentals, to maintain the Leased Premises and to pay the premiums or charges necessary to maintain or cause to be maintained the insurance required herein, and to provide the indemnity required herein shall be absolute and unconditional and shall not be subject to any defense (other than payment) or any right of set-off, counterclaim, abatement or otherwise except as expressly permitted by this Lease. Section 4.7 Prohibited Uses. (a) Lessee shall not allow the Leased Premises to be used for any of the following purposes: public nuisance; any use violating law; use as a sexually oriented business as defined in the City Code; or use as an industrial site or waste disposal facility. (b) Lessee shall not knowingly use the Leased Premises for any use that would cause the bonds used to finance the Baseball Stadium to lose their tax-exempt status. The City shall be responsible to notify Lessee of any prohibited uses that could cause such a result. If any of the permitted uses expressly described in Section 4.4 above shall be or become prohibited uses under this Section 4.7(b), then Lessee may terminate this Lease and the City shall promptly pay to Lessee the Unamortized Portion of the Lessee’s Contribution (measured as of the date of termination). ARTICLE V BEGINNING CONDITION, ALTERATIONS AND IMPROVEMENTS Section 5.1. Beginning Condition. On the Commencement Date, the City shall deliver exclusive and vacant possession of the Leased Premises to Lessee with all Project Improvements Work being Page 16 of 43 2nd Amended Restated Stadium Lease Draft Substantially Complete and in good working order and condition and having been accepted in writing by Lessee (subject only to minor punch list items which can be completed by the City or the Project Contractor without interfering with Lessee’s operation of the Leased Premises). - COMPLETED Section 5.2. Alterations. Any subsequent alterations, additions, or construction of new improvements on or in the Leased Premises must be consistent with the permitted uses of the Leased Premises as set forth in Section 4.4 and must be consistent with the then appearance of the Leased Premises and the uses being made thereof; and must be approved in advance in writing by the City, such approval not to be unreasonably withheld; provided, however, that Lessee is not required to obtain the City’s prior approval for (a) non-structural remodeling or installation or removal of Removables or other trade fixtures and equipment; (b) temporary improvements or alterations to accommodate particular events; (c) alterations required to comply with any applicable law or any requirements of the Sanctioning Association; (d) alterations resulting from restorations or repairs of existing facilities; or (e) any nonstructural alterations costing less than $100,000, with respect to any single alteration, or $500,000 in any calendar year with respect to a series of alterations. For the purposes of this Section, routine maintenance, repairs, and capital improvements of any kind that do not exceed the sum of $100,000 do not require the prior consent or approval of the City. Notwithstanding the foregoing, Lessee shall have the right to construct additional facilities upon the Land so long as the same are consistent in exterior appearance with the architectural theme of the Baseball Stadium, Lessee provides the City reasonable evidence of Lessee’s ability to pay for the same, and so long as the same, when completed, will not have reduced the overall utility of the Baseball Stadium or weakened or impaired the structural integrity of the Baseball Stadium. For work requiring the City’s approval, Lessee shall submit the plans, specifications and construction drawings to the City with Lessee’s request for approval. Anything to the contrary herein notwithstanding, no such alterations, additions or improvements shall cause the facilities within the Leased Premises to cease to qualify as a “project” under Section 4A(i) of Article 5190.6, Texas Revised Civil Statutes. Section 5.3. Compliance with Regulatory Requirements. Lessee agrees that all additions and alterations on or to the Leased Premises constructed by it shall be constructed in accordance with all applicable ordinances and statutes of Governmental Authority as well as the codes of the City. Lessee shall, at its sole cost and expense, procure or cause to be procured all necessary building permits, other permits, licenses and other authorizations required for the lawful and proper addition to or alteration, use, occupation, operation, and management of the Leased Premises (the City agrees to cooperate with Lessee’s efforts with respect to obtaining such permits, licenses or other authorizations). Section 5.4. Ownership of Improvements. Provided and for so long as no Event of Default has occurred hereunder, title to and ownership of the Leased Premises during the Term of this Lease shall be and remain in the City, except for trade fixtures, furniture, equipment, furnishings and their personal property installed in or affixed to the Leased Premises by or on behalf of Lessee (collectively, the “Removables”), all of which shall remain Lessee’s sole property. At the expiration or other termination of the Lease, all alterations, additions, and improvements to the Leased Premises (except for the Removables) must remain upon and be surrendered with the Leased Premises. Notwithstanding any of the above, so long as the City consents to assume the obligations of Lessee under any concession agreements, any concession equipment (other than Removables) shall remain in the Leased Premises. Section 5.5. The City’s Right of Inspection. Prior to the City giving or withholding its consent to any proposed construction, alteration, addition or Capital Repair (as defined herein) to the Leased Premises requiring such consent as set forth in Sections 5.2 and 7.3 herein, the City may review Lessee's conceptual design drawings and construction drawings for such construction work, the reasonable, out- of-pocket costs paid to third parties therefore to be paid by Lessee. Upon completion of any new construction or alteration or addition to existing improvements for which the City's approval is needed under the terms of this Lease, Lessee shall obtain a written certification addressed to the City from a licensed Page 17 of 43 2nd Amended Restated Stadium Lease Draft architect or engineer reasonably acceptable to the City stating that the construction has been completed substantially in accordance with the construction drawings and that, to the best of each professional’s knowledge, the completed improvements are in compliance with all applicable ordinances, statutes, and the requirements of all Governmental Authority. Additionally, the City may, at its sole discretion, cost and expense, have the Leased Premises inspected by an inspector qualified to determine compliance with Major League Baseball facilities’ standards and regulations, in order to determine whether or not Lessee is maintaining the Leased Premises commensurate with Major League Baseball facilities’ standards and regulations and/or whether or not Lessee is maintaining the Leased Premises at a level commensurate with the Comparable Facilities, as required in Section 6.1.5 herein. ARTICLE VI THE OPERATOR’S RIGHTS AND OBLIGATIONS Section 6.1. Management. Lessee shall be the exclusive manager and operator of the Baseball Stadium and shall have the exclusive right to contract for its license or use during the Term in a manner that will promote and further the purposes for which the Baseball Stadium has been constructed. Lessee shall do all things and take all commercially reasonable actions necessary for the operation and maintenance of the Baseball Stadium as a baseball stadium and entertainment facility in accordance with this Lease and in a manner generally consistent with the operation and maintenance of the Comparable Facilities as of the Effective Date, subject to normal wear and tear. Without limiting the generality of the foregoing, Lessee is authorized to and shall: 6.1.1 charge and collect all operating revenue, parking use charges, concession revenue, and seat and suite use charges for the Baseball Stadium and leased Premises and, in connection therewith, use all commercially reasonable efforts to obtain all fees, rents and other amounts due from licensees, concessionaires and other users of the Baseball Stadium and Leased Premises; and shall cause notices to be served upon such licensees and other users to quit and surrender space occupied or used by them where desirable or necessary in the opinion of Lessee and shall ask for, demand, collect and give receipts for all amounts which at any time may be due from any licensees and other users of the Baseball Stadium and Leased Premises; 6.1.2 commence, defend and settle in good faith such legal actions and proceedings concerning the operation of the Baseball Stadium (except for City events) as are necessary or required in the opinion of Lessee and shall retain counsel in connection therewith; 6.1.3 employ, pay and supervise all personnel that Lessee determines to be necessary for the operation of the Baseball Stadium (such personnel, during the course of such employment, shall be employees of Lessee and shall not be employees of the City); determine all matters with regard to such personnel, including without limitation, compensation, bonuses, fringe benefits, hiring and replacement and shall prepare, on its own behalf and file when due, all forms, reports and returns required by law relating to the employment of such personnel; 6.1.4 purchase and maintain all materials, tools, machinery, equipment and supplies deemed necessary by Lessee for the operation of the Baseball Stadium; 6.1.5 maintain the Baseball Stadium in accordance with Comparable Facilities subject to normal wear and tear, and maintain and operate the Baseball Stadium in compliance with all requirements necessary for the conduct of all home games; Page 18 of 43 2nd Amended Restated Stadium Lease Draft 6.1.6 prepare, coordinate, implement, revise as necessary and administer a preventative maintenance plan and program for the Baseball Stadium, its machinery and equipment, and provide a maintenance log for each prior Lease Year; 6.1.7 from and after the Commencement Date, arrange for and provide all utility and other services for the Baseball Stadium and pay or cause to be paid when due all charges for water, sewer, gas, light, heat, telephone, electricity, and other utilities and services rendered to or used on or about the Baseball Stadium (the City and/or the Project Contractor shall be responsible for arranging and paying for all utility services necessary for the construction and Final Completion of the Project Improvements Work and for providing permanent utility services infrastructure and hook-ups for Lessee’s use); provided, however, that the City and Lessee shall cooperate in an effort to obtain the most favorable rates for electricity and other utility services and, in that regard, if the City is able to procure such utility services at more favorable rates than Lessee, then the City and Lessee shall in good faith negotiate and amendment to this Lease whereby the City will agree to provide such utility services and Lessee will agree to reimburse the City for all such charges on a pass through basis (and without mark-up by the City); 6.1.8 maintain or cause to be maintained all necessary licenses, permits and authorizations for the operation of the Baseball Stadium; 6.1.9 furnish to the City such reports and other information concerning the condition of the Baseball Stadium and operation thereof (excluding any financial operating results or other information deemed commercially sensitive by Lessee) as may be reasonably requested from time to time by the City, it being understood, however, that Lessee shall not be required to generate any special reports but rather just make available to City any reports already prepared by Lessee in the normal conduct of its business; 6.1.10 procure and negotiate contracts with concessionaire(s) for the operation of consumable and/or non-consumable concessions at the Baseball Stadium (unless Lessee shall self- operate such concessions); and 6.1.11 control the issuance of and issue all credentials for events at the Baseball Stadium. Section 6.2. Promotions and Marketing. Lessee’s obligation to operate the Baseball Stadium generally consistent with Comparable Facilities shall not apply to promotional, event, or marketing activities, and Lessee shall have the discretion to adopt and implement such promotional and marketing practices as Lessee deems appropriate for the operation of its business at the Leased Premises. ARTICLE VII ADDITIONAL COVENANTS OF LESSOR AND LESSEE Section 7.1. Maintenance, Operation and Capital Repair Work Expenses of the Leased Premises. Subject to Section 7.4 herein, Lessee shall, at its sole cost and expense, perform all Capital Repair Work (as defined herein), maintenance and routine repairs required to keep, maintain, and operate the Leased Premises, including the interior and exterior, structural and nonstructural portions of the improvements, in as good repair as exists on the Commencement Date and in compliance with all applicable laws, regulations, orders and other governmental requirements of Governmental Authority applicable to the Leased Premises from time to time, and generally consistent with the operation and maintenance practices of the Comparable Facilities, subject to ordinary wear and tear, uninsured catastrophes, Force Page 19 of 43 2nd Amended Restated Stadium Lease Draft Majeure events, acts of God and events of condemnation. “Capital Repair Work” includes all work performed and expenses incurred for routine maintenance of the facilities, for capital improvements, and to repair, restore, replace, enhance, or refurbish any equipment, facility, structure or other component of the Leased Premises. The City has no maintenance and repair obligations under this Lease and, subject to the City’s obligations as set forth in Section 7.4 below, the City has no obligation to pay any maintenance, repair, Capital Repair, capital or operating expenses of the Leased Premises. Section 7.2. Lessee’s obligation to pay for maintenance, Capital Repair Work, enhancements and upgrades of the Leased Premises. Lessee shall spend no less than Three Hundred Fifty Thousand Dollars ($350,000) annually on maintenance, Capital Repair Work, enhancements and upgrades to the Leased Premises, as required in Section 7.1 herein, beginning in the year 2013 and through the end of this amended Lease’s Term. Notwithstanding the preceding statement, Lessee shall spend an amount greater than $350,000 annually if necessary in order to maintain the Leased Premises commensurate with Major League Baseball facilities’ standards and regulations and/or at a level commensurate with the Comparable Facilities, whichever level is determined to be a higher standard by a qualified inspector, as referenced in Section 5.5 herein. Section 7.3. Lessee’s obligation to provide reports relating to maintenance, Capital Repair Work, enhancements and upgrades. In addition to Lessee’s requirements under Section 5.5 herein, Lessee agrees annually, on or before October 1, to provide the City (i) a written accounting of all maintenance, Capital Repair Work, enhancements and upgrades to the Leased Premises paid for and completed by Lessee in the previous Lease Year pursuant to Section 7.2 herein, for which Lessee requests reimbursement from City pursuant to Section 7.4 herein, as well as (ii) a proposed detailed capital improvement plan for City review and approval which shall consist of a schedule for and estimated budget for proposed maintenance, Capital Repair Work, enhancements and upgrades for the upcoming year. Such written accounting of all maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee in the previous Lease Year shall be subject to the written approval of the City, such approval not to be unreasonably withheld, conditioned or delayed. Lessee’s proposed schedule for and estimated budget of proposed maintenance, Capital Repair Work, enhancements and upgrades for the upcoming year also shall be subject to the written approval of the City, such approval not to be unreasonably withheld, conditioned or delayed. Section 7.4. City’s obligation to reimburse Lessee. Upon City’s written approval of Lessee’s written accounting of all maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee in the previous Lease Year pursuant to Section 7.2 herein, subject to appropriation by the Corpus Christi City Council, and subject to Lessee’s compliance with Approved Procurement Practices and all applicable statutory requirements, City shall reimburse Lessee for such approved expenditures in the amounts set forth in 7.4.1 and 7.4.2, which shall be paid to Lessee no later than thirty (30) days following the last game or event held at the Leased Premises of the year following completion of such approved enhancements and upgrades. 7.4.1. City’s reimbursement obligation for the 2019-2020 City fiscal year. Regarding the maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee in the 2019-2020 City fiscal year, City agrees to reimburse Lessee a 2 to 1 match of Lessee’s payment, subject to availability of Corporation funds, with City reimbursement not to exceed two million dollars, with actual reimbursement amount limited by the amount actually expended by Lessee during the fiscal year for enhancements and upgrades. Corporation funds are available and the funding for the 2019-2020 fiscal year was approved by the Corporation on December 9, 2019 and the Corpus Christi City Council on ________________, 2020. City and Lessee agree that, at a minimum City shall reimburse Lessee One Hundred Seventy Five Thousand Dollars ($175,000) so Page 20 of 43 2nd Amended Restated Stadium Lease Draft long as Lessee complies with Section 7.2 requiring the expenditure of at least $350,000. 7.4.2 City’s annual reimbursement obligation beginning the 2020-2021 City fiscal year. Regarding the maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee for each year beginning the 2020-2021 City fiscal year, City agrees to reimburse Lessee a minimum amount of One Hundred Seventy Five Thousand Dollars ($175,000) annually so long as Lessee complies with Section 7.2 requiring expenditure of at least $350,000. Any request from Lessee for additional funding beyond the $175,000 provided in this Section will require approval of the Corpus Christi City Council. Section 7.5. Taxes and Other Charges. Lessee shall pay prior to delinquency, in addition to the payment of Rentals, each and every lawful cost, expense and obligation of every kind and nature, foreseen or unforeseen, by reason of Lessee's estate or interest in the Leased Premises or any portion thereof or by reason of or in any manner connected with or arising out of Lessee's possession, operation, maintenance, alteration, repair, rebuilding, use or occupancy of the Leased Premises, or any part thereof. Lessee shall pay and discharge, prior to the delinquency thereof, all lawful assessments, ad valorem taxes, sales taxes, business and occupation taxes, occupation license taxes, water charges, sewage disposal charges, or other utility charges imposed on the Leased Premises and Lessee's use and occupancy of the Leased Premises, and all other governmental taxes, impositions, and charges of every kind and nature, ordinary or extraordinary, general or special, foreseen or unforeseen, whether similar or dissimilar to any of the foregoing, and all applicable interest and penalties, if any, which at any time during the Term becomes due and payable by Lessee because of its rights or obligations under this Lease and which is lawfully levied, assessed or imposed on Lessee or its interest in the Leased Premises under or by virtue of any present or future law, statute, ordinance, regulation or other requirement of any Governmental Authority, whether federal, state, county, city, municipal, school or otherwise. Lessee, upon written notice to the City, may contest in good faith any such tax, imposition, charge or assessment levied by any Governmental Authority (other than water charges or sewage disposal charges), and in such event may permit such tax, imposition, charge or assessment (other than water charges or sewage disposal charges) to remain unsatisfied during the period of such contest and any appeal, provided, however, that prior to the commencement of such contest Lessee shall demonstrate to the City either (a) that Lessee will have sufficient funds to pay such assessment if the contest is unsuccessful (as determined to be acceptable in the sole discretion of the City) or (b) that Lessee has deposited into a separate escrow account funds equal to the contested amount, together with the anticipated interest and penalties, if any, that would be incurred in the event of an unfavorable disposition. Lessee also shall pay or cause to be paid all lawful charges for gas, water, sewer, electricity, light, heat, power, telephone, and other utilities and services used, rendered or supplied to, upon or in connection with the Leased Premises (Lessee to pay or cause to be paid all of such charges directly to the provider thereof except to the extent any of the same are provided by the City as contemplated by Section 6.1.8 above). Lessee shall furnish to the City promptly upon request, proof of the payment or timely contest of any such tax, assessment or other governmental or similar charge, or any utility charge which is payable by Lessee, or evidence of the deposit of such funds into a reserve account, all as set forth above. Notwithstanding the foregoing, in the event the Leased Premises is not exempt from property taxation due to any failure of the City, then the City shall be solely responsible for such tax. Furthermore, in the event a Targeted Tax is ever imposed by the City, then Lessee shall be entitled to a credit against all Rentals then due and thereafter becoming due so as to enable Lessee to recapture the amount of the Targeted Tax paid by Lessee; provided, that, in the event there are insufficient Rentals due and to become due hereunder to enable Lessee to recapture through offset against the Rentals the amount of Targeted Tax paid by Lessee, the City shall directly pay to Lessee the amount of such excess Targeted Tax within thirty (30) days following Lessee’s submittal to the City of the payment of the Targeted Tax and an invoice for the reimbursement therefore. The provisions of this paragraph shall expressly survive the expiration or sooner termination of this Lease. Page 21 of 43 2nd Amended Restated Stadium Lease Draft Section 7.6. Liens and Encumbrances. Lessee covenants and agrees that, except for this Lease, it will not create or suffer to be created by, through or under Lessee any lien, encumbrance or charge upon the Leased Premises. Lessee shall satisfy or cause to be discharged, or will make adequate provision to satisfy and discharge, within sixty (60) days after the same occurs, all such claims and demands for labor, materials, supplies or other items which, if not satisfied, might by law become a lien upon the Leased Premises or any part thereof. If any such lien is filed or asserted against Lessee or the Leased Premises by reason of work, labor, services or materials supplied or claimed to have been supplied on or to Lessee or the Leased Premises at the request or with the permission of Lessee or of anyone claiming under it, Lessee shall, within sixty (60) days after it receives notice of the filing thereof or the assertion thereof against the Leased Premises, cause the same to be discharged of record, or effectively prevent the enforcement or foreclosure thereof, by contest, payment, deposit, bond, order of court or otherwise. Section 7.7 Franchise Liens. Lessee may, at any time or from time to time, grant liens upon the Team and/or any and all ownership or franchise rights Lessee has in or with respect to the Team; provided, however, that to ensure the continued compliance with the Non-Relocation Agreement (and the other Project related documents to which Lessee or the Team is a party), by Lessee or the Team or any other person who acquires the franchise by transfer, foreclosure, or otherwise at any time during the term of the Lessee license agreement, any such liens shall (i) be made or granted in compliance with and subject to the requirements and obligations of Lessee pursuant to this Lease and the Non-Relocation Agreement and (ii) provide that any person who acquires the franchise pursuant to any foreclosure or other transaction under any such liens shall take the franchise strictly subject to and assume the requirements and burdens imposed on Lessee pursuant to this Lease and the Non-Relocation Agreement. Upon any such granting of such liens, Lessee shall obtain from each such lien holder a written acknowledgment and acceptance of the terms, provisions, and restrictions contained herein and shall provide an executed copy thereof to the City and shall state in the instruments creating and perfecting such lien that any transfer is subject to the terms herein. In the event involuntary liens or material encumbrances are placed on the franchise that, upon foreclosure, would result in a violation hereof, Lessee will use its good faith efforts to promptly remove such liens or material encumbrances after reasonable contest periods. Section 7.8. Surrender of Possession. Upon the termination of this Lease, Lessee shall surrender the Leased Premises (including all improvements thereon) to the City in a condition which would have been in compliance with the maintenance requirements of Section 7.1 of this Lease had the Lease not terminated, reasonable wear and tear and damage by casualty and condemnation excepted. Section 7.9. Operation. Lessee agrees to operate and maintain the Leased Premises throughout the Term in a condition necessary to conduct the permitted uses described in Section 4.4, consistent with the general quality of operations at Comparable Facilities. Except as provided herein, Lessee may not assign any rights, duties or obligations to operate and maintain the Leased Premises throughout the Term to any party, other than its Affiliates, without the prior written consent of the City. The City acknowledges that the foregoing does not prohibit Lessee from contracting with third parties to provide services such as concessions, security, janitorial and similar services. Section 7.10. Right of Lessee to Revenues. Except as provided in Section 7.16, Lessee shall be entitled to, and is hereby granted the exclusive right to, contract for, collect, receive and retain all gross income and revenues and other consideration of whatever kind or nature realized by, from or in connection with the Leased Premises, including, without limitation, all gross revenues, royalties, license fees, concession fees and income and receipts of any nature, including, without limitation, those arising from (a) all advertising rights, (b) all broadcast rights, (c) parking, (d) promotion of events at the Leased Premises, (e) the sale of food, beverages, merchandise, programs and other goods and wares of any nature whatsoever at the Leased Premises, (f) all naming rights, and (g) all telecommunications rights. Lessee shall have the right, without the prior consent of the City, to sell or grant rights to purchase future tickets for reserved Page 22 of 43 2nd Amended Restated Stadium Lease Draft seats, club seats and luxury suites, including personal seat licenses (collectively, “Seat Rights”). All Seat Rights shall be subject and subordinate to the provisions of this Lease and shall not survive the termination or expiration of this Lease. The Lessee shall have no responsibility or obligation to sell Seat Rights and the City shall not have any liability or responsibility to assure the sale of Seat Rights. Lessee shall be entitled to, and is hereby granted the exclusive right to, collect, receive and retain all gross income and revenues and other consideration of whatever kind or nature (but excluding any Targeted Taxes) realized by, from or in connection with the sale or other distribution of Seat Rights, tickets or passes (including general admission) for any seats in the Leased Premises. Section 7.11. Naming and Other Rights. Lessee shall have the full right to provide a name or names for the Baseball Stadium during the Term of this Lease; provided, however, that, except for city names which are incorporated into the brand name of any nationally or regionally offered product or service (such as, by way of example and not limitation, “Seattle’s Best” coffee, “Milwaukee’s Best” beer or “Boston Market” foods), Lessee shall display no reference to any county or to any city other than the City in any signage, advertising, and other identification monuments or visible media containing the name used by or identifying the Baseball Stadium facility on the Leased Premises. Lessee agrees to use a name for the Baseball Stadium that is appropriate for a City-owned facility. Within ten (10) days after the Lessee’s disclosure to the City of the name of the Baseball Stadium, the City shall have the right to disapprove and thus prohibit such name for the Baseball Stadium (including the name for the concourses or other part of the Baseball Stadium) if the City Council reasonably deems such name to be in bad taste or offensive to the City’s image or a potential source of embarrassment to the City. Any advertising, documents or media information prepared by or within the control of Lessee describing any event at the Baseball Stadium shall identify the City as the location of the Baseball Stadium. Without limiting the foregoing, Lessee shall have the exclusive right to contract with any person with respect to use and enjoyment of such name for the Baseball Stadium and the exclusive right to enter into agreements with others whereby such others may display names, logos, trademarks, advertisements, slogans, emblems, brand names, and the like in or about the Leased Premises. Lessee reserves the right to change the name of the Baseball Stadium from time to time. Lessee also retains exclusive rights of control over, and the right to grant to others, the rights to broadcasts to and from the Leased Premises, regardless of the medium used (e.g., television, radio, internet, satellite) and all revenues therefrom. Any agreement executed by Lessee that sells the right to name the Baseball Stadium shall provide that should the party to whom said right has been sold perform or be the subject of any Act of Bankruptcy, Lessee shall have the right to immediately terminate such agreement and have the right to seek a new agreement with respect to the naming rights for the Baseball Stadium. Any expenses incurred by Lessee in the marketing or sale of naming rights shall not be considered an operation or maintenance expense of the Baseball Stadium. Notwithstanding anything herein to the contrary, the naming rights shall be subject to and subordinate to this Lease. Section 7.12. Advertising Content. Lessee agrees that no advertising shall be allowed on the Leased Premises for sexually oriented businesses as defined in the City Code or for political candidates or issues. Section 7.13. Notification of Events of Default. Lessee covenants and agrees that it will promptly notify the City of the occurrence of an Event of Default specifying the details of such Event of Default and the action that Lessee proposes to take with respect thereto. Section 7.14. The City to Provide Scoreboard. The City shall provide and install at the Baseball Stadium, at its cost and expense and as part of the City’s Contribution, a scoreboard approved by Lessee and meeting the Minimum Stadium Requirements and the requirements of the Sanctioning Association and of at least the quality of scoreboards at Comparable Facilities. - COMPLETED Section 7.15. The City’s Right of Entry and Inspection. Upon reasonable prior notice to Lessee (and not less than 48 hours in non-emergency situations), the City shall have the unrestricted right to enter Page 23 of 43 2nd Amended Restated Stadium Lease Draft upon the Leased Premises, for the purpose of inspecting the same and verifying Lessee’s compliance with the terms and conditions of this Lease. Section 7.16. Use of Leased Premises. Lessee will allow local baseball teams, on terms acceptable to Lessee to use the Leased Premises. Lessee will also allow the City, from time to time (but not more often than 10 times per Lease Year or 5 times during any single baseball season), the use of the Leased Premises for the conduct of City sponsored programs free of charge except that the City shall be responsible for all costs of operating the Baseball Stadium for such City sponsored programs and for all damage caused thereby and all janitorial, security, traffic control, and other services needed as a consequence thereof. These dates shall be determined in advance through negotiation of Lessee and the City. It is agreed that baseball games of the Team will be given priority if there is a conflict in dates (in no event shall the City have the right to use the same on any day during which a baseball game of the Team is scheduled). Additionally, the City shall be entitled to use the meeting facilities in the Baseball Stadium on an as available basis and free of charge except that the City shall reimburse Lessee for any and all direct expenses associated with such use. The City and Lessee agree to use commercially reasonable efforts to coordinate the scheduling of non-sports events at the Baseball Stadium and the City’s Multi-Purpose Arena, both City tax supported facilities, to the maximum extent practicable. Notwithstanding the foregoing, the City shall be entitled to the free use of the Nights at the Cotton Club meeting room three times per year, as scheduling allows. In addition, the Lessee shall provide a suite at the Leased Premises free of charge for City’s exclusive use throughout the entire term of this Lease. Lessee will also provide a $500 food voucher for use in the City suite during one half of the home games each year. Section 7.17. Sales Taxes; Location of Ticket Office. The City and Lessee intend for all municipal sales taxes arising from ticket sales for taxable amusement services at the Baseball Stadium are to be allocated to the City, as specifically required by 34 Texas Administrative Code § § 3.298(a)(1)(C) and 3.374; provided, however, nothing herein shall be deemed to prohibit or restrict Lessee for effecting sales of tickets through offices or services which are not located in the City. Should Lessee do so, Lessee shall in good faith attempt to do so in a manner which permits the City to collect the sales taxes generated therefrom. In all events, all telephone solicitations and sales shall be made in a manner which permits the City to collect the sales taxes generated therefrom. Section 7.18. Obligation to Provide Professional Baseball Team. Lessee agrees that during the Term of this Lease that it will ensure that the Team continuously uses the Leased Premises for all of its home games (subject to temporary changes in “home” vs. “away” status as may be directed from time to time by the Sanctioning Association). The Team will initially be either a double -A or triple-A team (or the equivalent thereof sanctioned by the Sanctioning Association) which is affiliated with a Major League Baseball team. All home games of the Team during the Term shall be played at the Leased Premises (subject to temporary changes in “home” vs. “away” status as may be directed from time to time by the Sanctioning Association). If Lessee shall lose or relinquish its baseball franchise, league affiliation, or player development contract, the Lessee shall continue to be obligated to field a team sanctioned by a Sanctioning Association which is affiliated with Major League Baseball at the Leased Premises. Failure to provide said Team will be considered as a Lessee Default under Section 11.3. Section 7.19. Concession Improvements; Access. Lessee shall cause the Concession Improvements to be constructed at Lessee’s sole cost and expense and as part of Lessee’s Contribution. Concession Improvements shall be of a quality generally consistent with concession improvements at Comparable Facilities. The City agrees that Lessee and its agents, contractors, sublessees, licensees, and concessionaires shall, subject the requirements of the City’s insurers, have the right of access, for themselves and their authorized representatives, to the Leased Premises, without charges or fees or the commencement of Rentals hereunder, and at normal construction hours during the construction period, Page 24 of 43 2nd Amended Restated Stadium Lease Draft for the purposes of determining compliance with this Lease, construction and installation of any Concession Improvements, construction and installation of any interior tenant finish work and other normal and customary construction related business, and equipping locker room and related facilities for Lessee. Lessee agrees not to hinder or interfere with the Project Improvement Work or the activities of the City’s contractors. Section 7.20. Security and Traffic Control. Lessee shall provide such on-site traffic control and security as is reasonable necessary to direct traffic to and from events at the Baseball Stadium. Subject to Lessee's payment of the City’s customary charges for similar activities, the City will provide such off-site traffic control and security as is reasonably necessary to direct traffic to and from events at the Baseball Stadium at a level of service comparable to that provided to other venues within the City. The Parties shall cooperate in good faith to develop a traffic control management plan to facilitate the ingress and egress of traffic to and from events at the Baseball Stadium; provided, however, that the Parties are under no obligation under the preceding clause to incur any costs in excess of costs otherwise required by this Lease. Section 7.21. Records. For a period of three (3) years after the end of the Lease Year to which they pertain, Lessee shall keep and maintain in the City complete and accurate attendance records for the Baseball Stadium. The City (including accountants and attorneys designated by the City) shall be entitled to inspect such records during the Term of this Lease and thee (3) years thereafter at Lessee’s office, at all reasonable times upon not less than forty-eight (48) hours’ notice. Section 7.22. City Tickets to Events. Lessee agrees that the City shall be provided with 12 tickets and customary parking passes to events held at the Baseball Stadium, the location of such tickets are to be at a mutually agreeable place within the highest priced general admission seating in the stadium. The use of such tickets shall be administered by the City’s Convention and Visitors Bureau and shall be provided without cost. Section 7.23. Hurricane Preparedness. If the Corpus Christi area is threatened by a hurricane or some other emergency situation, Lessee shall comply with all lawful orders of the City Manager under the City’s hurricane preparedness plan. Section 7.24. Sanitary Sewer. Provided the systems incorporated into the Project Improvements permit it to do so, Lessee shall operate its sanitary sewer facilities in accordance with the City Code of Ordinances, Section 13-201 and City Code of Ordinances, Chapter 55, Article XI, Commercial and Industrial Waste Disposal and Pretreatment, as the same may be amended. Section 7.25. Parking Area Sublease. The City covenants and agrees that it will enter into the Parking Area Sublease covering the Parking Area in form and substance acceptable to Lessee and will cause the Parking Area improvements described in the Parking Area Sublease to be complete and available for Lessee’s use on or before the Target Substantial Completion Date. ARTICLE VIII INSURANCE AND CONDEMNATION Section 8.1. Lessee's Insurance. Unless otherwise expressly provided below, commencing on the Commencement Date or any earlier occupation of the Leased premises by Lessee or its contractors as provided herein, Lessee covenants that it shall maintain in effect at all times during the full Term of this Lease, insurance coverages with limits not less than those set forth below with insurers licensed to do business in the State of Texas and acceptable to the City and under forms of policies satisfactory to the City. Lessee shall maintain such insurance coverages at its sole cost and expense. The City shall be Page 25 of 43 2nd Amended Restated Stadium Lease Draft under no obligation to maintain any such insurance coverage should Lessee be found to be in default under this Article VIII. None of the requirements contained herein as to types, limits or the City's approval of insurance coverage to be maintained by Lessee are intended to and none shall in any manner limit, qualify or quantify the liabilities and obligations assumed by Lessee under this Lease or otherwise provided by law. Section 8.2. Workers' Compensation Insurance. Lessee shall provide Workers’ Compensation insurance in the limits required by State law. Section 8.3. Employers’ Liability Insurance. Lessee shall provide Employers’ Liability insurance in minimum coverage amounts of $500,000. This policy shall include a waiver of subrogation in favor of the City. Section 8.4. Commercial General Liability: Bodily Injury/Property Damage. Lessee shall provide Commercial General Liability: Bodily Injury/Property Damage insurance coverage in the amount of $1,000,000 for each occurrence or equivalent; subject to a $2,000,000 aggregate. Such commercial general liability policy shall be on an occurrence form reasonably acceptable to the City, endorsed to include the City as an additional insured, contain cross-liability and severability of interest endorsements, state that this insurance is primary insurance as regards any other insurance carried by the City, and shall include the following coverages: (a) Premises/Operations; (b) Independent Contractors; (c) Broad Form Contractual Liability specifically in support of, but not limited to, the Indemnification section of this Lease; and (d) Personal Injury Liability with the employee and contractual exclusions removed. Section 8.5 Builder’s Risk. Lessee shall provide Builder’s Risk Insurance covering all insurable risks with respect to its build out obligations with limits reasonably acceptable to the City (with such limits to in no event exceed the replacement value of all insurable improvements comprising the Minimum Lessee Improvement Requirements). Section 8.6. Comprehensive Automobile Liability. Lessee shall provide Comprehensive Automobile Liability insurance for bodily injury and property damage in the amount of $1,000,000 combined single limit of liability. This policy shall be on a standard form written to cover all owned, hired and non-owned automobiles. Section 8.7. Umbrella Excess Liability Insurance. Lessee shall provide Umbrella Excess Liability Insurance; Bodily Injury/Property Damage (Occurrence Basis) in the amount of $10,000,000 per occurrence and aggregate. This policy shall be written on a following form umbrella excess basis above for the coverages described in Sections 8.3, 8.4, 8.5, 8.6 and 8.7 above and shall be endorsed to include the City as additional insured (to the extent such additional insured designation is commercially available for such umbrella excess liability coverage). Section 8.8. The City's Property. The City shall, at its expense, procure and keep in force, at all times during the term of this Lease with an insurer or insurers licensed to do business in the State a hazard and casualty insurance policy on the Leased Premises insuring it against loss and damage by fire, collapse, aircraft and all other perils which may be insured against under multi-peril policies available on commercially reasonable terms. Such policy shall be in an amount of not less than one hundred percent (100%) of the insurable replacement cost of the Leased Premises and all improvements therein (excluding, however, all of Lessee’s personal property). Section 8.9. Evidence of Insurance. Evidence of the insurance coverage required under this Article VIII, represented by Certificates of Insurance issued by the insurance carrier, must be furnished to the requesting party prior to the commencement of the Term of this Lease. Certificates of Insurance shall specify the Page 26 of 43 2nd Amended Restated Stadium Lease Draft additional insured status required above as well as the waivers of subrogation. Such Certificates of Insurance shall state that the parties will be notified in writing thirty (30) days prior to cancellation, material change or non-renewal of insurance. Each party shall provide to the other a certified copy of any and all applicable insurance policies upon request. Section 8.10. Insurance Requirements for Lessee's Contractors and Subcontractors. (a) General Requirements. Subject to the City's right to waive such requirements for a contractor or subcontractor at the City's sole discretion, insurance similar to that required of Lessee with limits reasonably acceptable to the City shall be provided by or on behalf of all contractors and their subcontractors to cover their operations performed for Lessee. The Commercial General Liability policy outlined in Section 8.4 will be extended to include Completed Operations coverage for any contractor doing construction work on the Leased Premises. Lessee shall consult with the City with respect to such matters to determine if the City desires to waive such requirements for a contractor or subcontractor. Lessee shall maintain Certificates of Insurance from all contractors and their subcontractors enumerating, among other things, the waivers in favor of, and insured status of, the City as required herein, and Lessee shall provide to the City a copy of each Certificate of Insurance from each contractor and subcontractor if requested by the City. (b) Subcontractors. The term “subcontractor(s)” for the purposes of this Lease shall include subcontractors, consultants, or sub-operators of any tier. Section 8.11. Release and Waiver. TO THE EXTENT PERMITTED BY LAW, AND WITHOUT AFFECTING THE INSURANCE COVERAGE REQUIRED TO BE MAINTAINED HEREUNDER, THE LESSOR AND LESSEE EACH WAIVE ALL RIGHTS OF RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION AGAINST THE OTHER FOR ANY (A) DAMAGES FOR INJURY OR DEATH OF PERSONS, (B) DAMAGE TO PROPERTY, OR (C) CLAIMS ARISING BY REASON OF ANY OF THE FOREGOING, TO THE EXTENT THAT SUCH DAMAGES AND/OR CLAIMS (i) ARE COVERED (AND ONLY TO THE EXTENT OF SUCH COVERAGE WITHOUT REGARD TO DEDUCTIBLES) BY INSURANCE ACTUALLY CARRIED BY THE PARTY HOLDING OR ASSERTING SUCH RIGHT OF RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION OR (ii) WOULD BE INSURED AGAINST UNDER THE TERMS OF ANY INSURANCE REQUIRED TO BE CARRIED UNDER THIS LEASE BY THE PARTY HOLDING OR ASSERTING SUCH RIGHT OF RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION. THIS PROVISION IS INTENDED TO (i) RESTRICT EACH PARTY (IF AND TO THE EXTENT PERMITTED BY LAW) TO RECOVERY AGAINST INSURANCE CARRIERS TO THE EXTENT OF SUCH COVERAGE AND TO WAIVE (TO THE EXTENT OF SUCH COVERAGE), FOR THE BENEFIT OF EACH PARTY, RIGHTS AND/OR CLAIMS WHICH MIGHT GIVE RISE TO A RIGHT OF SUBROGATION IN ANY INSURANCE CARRIER AND (ii) GIVE EACH PARTY THE BENEFIT OF THE FOREGOING NOTWITHSTANDING ANY FAILURE BY THE OTHER PARTY TO MAINTAIN THE INSURANCE REQUIRED UNDER THIS LEASE. THE PROVISIONS OF THIS ARTICLE 8.11 ARE NOT INTENDED TO LIMIT THE CLAIMS OF THE LESSOR OR LESSEE TO THE FACE AMOUNT OR COVERAGE OF THE INSURANCE POLICIES HEREIN PROVIDED FOR OR TO EVIDENCE THE WAIVER BY EITHER PARTY OF ANY CLAIM FOR DAMAGES IN EXCESS OF THE FACE AMOUNT OR COVERAGE OF ANY OF SUCH INSURANCE POLICIES. NEITHER THE ISSUANCE OF ANY INSURANCE POLICY REQUIRED UNDER, OR THE MINIMUM LIMITS SPECIFIED IN, ARTICLE VIII WITH RESPECT TO LESSEE'S OR LESSOR'S INSURANCE COVERAGE SHALL BE DEEMED TO LIMIT OR RESTRICT IN ANY WAY LESSEE'S OR LESSOR'S LIABILITY ARISING UNDER OR OUT OF THIS LEASE. Lessee shall cause each of its contractors entering upon the Leased Premises for the purpose of conducting Page 27 of 43 2nd Amended Restated Stadium Lease Draft work thereon or therein to similarly waive its rights of recovery and subrogation against the City. Section 8.12. Insurers and Policies. Each insurance policy required by Ar ticle VII shall be issued by an insurer (or insurers) which is financially responsible, of recognized standing and rating acceptable to the City (but not exceeding the requirements the City imposes on contractors working on City property) and authorized to issue such policy of insurance in the State of Texas; (b) shall be in such form and with such provisions as are reasonably acceptable to the City and Lessee for the type of insurance involved; and (c) shall prohibit cancellation or substantial reduction of coverage by the insurer without at least thirty (30) days prior written notice to the parties. Evidence of these coverages represented by certificates of insurance issued by the insurance carrier must be furnished prior to commencement of the Term and must be kept current throughout the Term. None of the requirements contained herein as to types, limits or approval of insurance coverage are intended to and shall not in any manner limit, qualify, or quantify the liabilities and obligations assumed by the parties under this Lease or otherwise provided by law. ARTICLE IX INDEMNIFICATION Section 9.1. Indemnification. (a) Lessee shall, except as provided in the following paragraph of this Section 8.1(a) defend, protect, indemnify and hold the City and its officers, directors, employees, and agents harmless from and against any and all liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses), arising from or in connection with any injury to or death of a Person or any damage to property resulting from, arising out of or in connection with (i) the use or occupancy of the Leased Premises on or after the Commencement Date or (ii) the negligence or willful act of Lessee or Lessee's contractors, employees, officers, directors, agents or invitees. Notwithstanding the provisions of the preceding paragraph, Lessee shall not be liable for any liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses) arising from or in connection with: (1) Any injury to or death of a person or any damage to property (including loss of use) to the extent of the negligence or willful act of the City, its employees, officers, directors, contractors, agents or invitees; (2) The City's violation of any provisions of this Lease or any applicable Governmental Authority or deed restriction or insurance policy, now or hereafter in effect and applicable to the City; (3) The existence of any Hazardous Materials in, on or under the Leased Premises prior to the Commencement Date; or (4) Any environmental event caused by the City or any of its employees, officers, directors, contractors, agents or invitees. (b) To the maximum extent permitted by State law, the City shall, except as provided in the following paragraph of this Section 9.1(b), defend, protect, indemnify and hold Lessee and its officers, directors, employees, and agents harmless from and against any and all liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses), arising from or in connection with any injury to or death of a person or any damage to property resulting from, arising out of or in connection with (i) the use or occupancy of the Leased Premises prior to the Commencement Date, except to the extent any such liability, damage suit, claim or judgment arises from the use or occupancy of the Leased Premises by Lessee for constructing and installing any Concession Improvements or any other Lessee improvements as required under this Lease, (ii) the use or occupancy of the Leased Premises for City events subsequent to the Commencement Date as contemplated by Page 28 of 43 2nd Amended Restated Stadium Lease Draft Section 7.16 hereof, or (iii) the negligence or willful act of the City or the City's contractors, employees, officers, directors, agents or invitees. Notwithstanding the provisions of the preceding paragraph, the City shall not be liable for any liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses) arising from or in connection with: (1) Any injury to or death of a person or any damage to property (including loss of use) to the extent of the negligence or willful act of Lessee, its employees, officers, directors, contractors, agents or invitees; (2) Lessee's violation of any provisions of this Lease or any applicable Governmental Rules or deed restriction or insurance policy, now or hereafter in effect and applicable to Lessee; (3) Any Hazardous Materials that are introduced to the Leased Premises after the Commencement Date by Lessee, or any of its employees, officers, directors, contractors, or agents; or (4) Any environmental event caused by Lessee or any of its employees, officers, directors, contractors, or agents. The provisions of this Section 9.1 are solely for the benefit of the City and Lessee and are not intended to create or grant any rights, contractual or otherwise, to any other person. Section 9.2. Indemnification Procedures. In case any claim shall be brought or, to the knowledge of any indemnitee, threatened against any indemnitee in respect of which indemnity may be sought, such indemnitee shall promptly notify the other in writing; provided, however, that any failure so to notify shall not relieve the indemnitor of its obligations under Section 9.1 unless (i) such failure so to notify precludes investigation and defense of such claims as a matter of law, and (ii) the indemnitor does not otherwise have knowledge, either actual or constructive, of such claim. The indemnitor shall have the right (and obligation, subject to the terms below) to assume the investigation and defense of all claims, including the employment of counsel, reasonably acceptable to the indemnitee, and the payment of all expenses. Each indemnitee shall have the right to employ separate counsel in any such action and participate in the investigation and defense thereof, but the fees and expenses of such counsel shall be paid by such indemnitee unless (i) the employment of such counsel has been specifically authorized by indemnitor, in writing, (ii) indemnitor has failed after receipt of notice of such claim to assume the defense and to employ counsel, or (iii) the named parties to any such action (including any impleaded parties) include both parties, and the indemnitee, after consultation with its counsel, reasonably believes that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnitor (in which case, if such indemnitee notifies the indemnitor in writing that it elects to employ separate counsel at indemnitee’s expense, indemnitor shall not have the right to assume the defense of the action on behalf of such indemnitee; provide, however, that indemnitor shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegation or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnitee, which firm shall be designated in writing by the indemnitees). Each indemnitee shall cooperate with the indemnitor in the defense of any action or claim. The indemnitor shall not be liable for any settlement of any action or claim without its consent, but if any such action or claim is settled with the consent of the indemnitor or there be final judgment or agreement for the plaintiff in any such action or with respect to any such claim, the indemnitor shall indemnify and hold harmless the indemnitees from and against any damages by reason of such settlement or judgment. Section 9.3. Survival Right to Enforce. The provisions of this Article IX shall survive the termination of this Lease. In the event of failure by an indemnitor to observe the covenants, conditions and agreements contained in this Article IX, any indemnitee may take any action at law or in equity to collect amounts then Page 29 of 43 2nd Amended Restated Stadium Lease Draft due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of the indemnitor under this Article IX. Except as otherwise provided in Article X below, the obligations of the parties under this Article IX shall not be affected by any assignment or other transfer of its rights, titles or interests under this Lease and will continue to inure to the benefit of the indemnitees after any such transfer. ARTICLE X ASSIGNMENTS; LEASEHOLD MORTGAGES Section 10.1. Assignment and Subleasing. (a) Except as provided below, Lessee shall not assign or sublet its interest in this Lease or any of its rights or obligations hereunder without the prior written consent of the City, which consent may be granted or withheld if in the City's sole judgment such assignment or subletting might materially and adversely affect the financial condition or operations of the Baseball Stadium. (b) Notwithstanding the foregoing, without the City’s consent Lessee shall have the right upon thirty (30) days prior written notice to the City to assign its interest in this Lease (i) to any Affiliate of Lessee, or (ii) in connection with a merger or consolidation of Lessee with another entity so long as, following such transaction, the successor entity’s financial creditworthiness is equal to or greater than that of Lessee as of the Commencement Date. (c) Notwithstanding the foregoing, without the City’s consent, Lessee shall have the right upon thirty (30) days prior written notice to the City to assign its interest in this Lease in connection with a sale of the Team or a sale by Lessee of all or substantially all of its assets, in a single transaction or a series of transactions, and where such purchaser’s net worth (determined in accordance with generally accepted accounting principles) is, following such purchase, equal to or greater than that of the Lessee as of the Commencement Date and where such purchaser’s acquisition of the Team (or of all or substantially all of Lessee’s assets) has been approved by the Sanctioning Association. (d) Upon any assignment or transfer as described in paragraphs (b) or (c) above, the assignor shall be released from liability under this Lease (other than any liabilities arising or accruing prior to the date of assignment). Section 10.2. Notice of Intent. If Lessee shall, at any time during the Term, desire to assign this Lease or sublet all or part of the Leased Premises to a party (other than as permitted without the City’s consent under Section 10.1 above), Lessee shall give notice thereof to the City, which notice shall be accompanied by: (a) a conformed or photo static copy of the proposed assignment or sublease; (b) a statement setting forth, in reasonable detail, the identity of the proposed assignee or sublessee and the nature of its business; (c) current financial information with respect to the proposed assignee or sublessee, including its most recent financial statement (which may take into account the effects of the transfer); (d) banking and business references of the proposed assignee or sublessee; and (e) evidence satisfactory to the City that the proposed assignee or sublessee has been approved by a Sanctioning Association to own and operate a minor league baseball team and have its home games played at the Baseball Stadium. Section 10.3. Conditions Upon the City's Consent to Assignment. In the event that Lessee complies with all of the provisions of Section 10.2 and provided no Event of Default then exists, the City's consent to a proposed assignment shall not be unreasonably withheld or delayed, provided and upon condition that: (a) The proposed assignee or sublessee is a reputable person or entity of good standing in the business community and with financial worth (after giving effect to the transfer) not less than that of Lessee as of the date hereof, and the City has been furnished with reasonable proof thereof; (b) The proposed assignment shall be in a form reasonably satisfactory to the City and shall comply with the Page 30 of 43 2nd Amended Restated Stadium Lease Draft provisions of this Lease; and (c) Lessee shall reimburse the City on demand for any costs and overhead that may be incurred and substantiated by the City in connection with said assignment or sublease, including the costs of making investigations as to the acceptability of the proposed transferee and reasonable legal costs incurred in connection with the granting or withholding of any requested consent. If the foregoing conditions to an assignment are satisfied and the assignment is made, then upon such assignment the named Lessee herein shall be released herefrom with respect to obligations, covenants, and agreements to be observed and performed by the Lessee under this Lease after such date. Section 10.4. Subleases and Concession Arrangements. Notwithstanding the foregoing, Lessee shall have the right to enter into such subleases of portions of the Leased Premises and concession arrangements as Lessee may desire, all without consent from the City so long as each such sublease or concession arrangement provides that it is expressly subject and subordinate to this Lease. Section 10.5. Leasehold Mortgages. Lessee shall have no right to encumber by mortgage, deed of trust, security agreement or other instrument in the nature thereof (collectively, a “Mortgage”) or otherwise to encumber or affect in any way the titles, interests, or estates of the City in or to the Land or the Leased Premises, but Lessee may encumber Lessee's right to use and occupy the Leased Premises, the leasehold estate created hereby, any right, title and interest in and to any and all improvements constructed on the Leased Premises, or Lessee’s receivables, accounts, or revenue streams from, and equipment and fixtures in, the Leased premises, all without the need for obtaining the City’s consent. ARTICLE XI DEFAULT Section 11.1. City Default. The occurrence of any of the following shall be an “Event of Default” by the City or a “City Default”: (a) The failure of the City to pay any of its monetary obligations under this Lease when due and payable under this Lease if such failure continues for thirty (30) days after Lessee gives notice to the City that such amount was not paid when due; (b) Abandonment of the Project by the City or any termination, in whole or in part, of any of the Project Construction Contract or any of the work thereunder by the City without the consent of Lessee unless pursuant to a right of termination based upon the existence of an event of default under such Project Construction Contract; (c) Any suspension of the Project Improvements Work by the City for longer than sixty (60) consecutive days or one hundred twenty (120) days in any three hundred sixty-five (365) day period for any reason other than Force Majeure; (d) The failure of the City to substantially perform or substantially observe any of the obligations, covenants or agreements to be performed or observed by City under this Lease within thirty (30) days after notice from Lessee of such failure; provided, however, that if such performance or observance cannot reasonably be accomplished within such thirty (30) day period, then no Event of Default by the City shall occur unless the City fails to commence such performance or observance within such thirty (30) day period and fails to diligently prosecute such performance or observance to conclusion thereafter; provided further, however, that if such performance or observance has not been accomplished within one hundred twenty (120) days after notice from the Lessee to the City of such failure (notwithstanding the City’s diligent prosecution of its curative efforts), then such failure shall constitute an Event of Default by the City hereunder; (e) the occurrence of an event of default, however denominated, by the City under the Parking Sublease; or (f) The occurrence of an Act of Bankruptcy with respect to the City. Section 11.2. Lessee’s Remedies. If a City Default shall have occurred and be continuing, Lessee may, at its sole discretion, have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, other than any notice expressly provided in this Lease: (a) Lessee may terminate this Lease, as provided in Section 11.5 (except that the notice requirements of Section 11.5 shall not be required with respect to the City Default specified in Section 11.3(c) above) and the City Page 31 of 43 2nd Amended Restated Stadium Lease Draft shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution; (b) In the case of a City Default described in either of Section 11.1(b) or (c), Lessee may (but shall not be obligated) enter the Land and direct completion of the Project Improvements Work and the City agrees to provide to Lessee the unutilized proceeds from the debt incurred by the Corporation and made available to the City under the terms of the Corporation Project Agreement to pay the costs and expenses incurred by Lessee in completing the Project Improvements Work; and (c) Lessee may exercise any and all other remedies available to Lessee at law or in equity, but subject to any limitations thereon set forth in this Lease. Section 11.3 Lessee Default. The occurrence of the following shall be an “Event of Default” by Lessee or a “Lessee Default”: (a) The failure of Lessee to pay any of its monetary obligations to the City under this Lease when due and payable if such failure continues for thirty (30) days after the City gives notice to Lessee that such amount was not paid when due; (b) The failure of Lessee to substantially perform or substantially observe any of the obligations, covenants or agreements to be performed or observed by Lessee under this Lease within thirty (30) days after notice from the City of such failure; provided, however, that if such performance or observance cannot reasonably be accomplished within such thirty (30) day period, then no Event of Default by Lessee shall occur unless Lessee fails to commence such performance or observance within such thirty (30) day period and fails to diligently prosecute such performance or observance to conclusion thereafter; provided further, however, that if such performance or observance has not been accomplished within one hundred twenty (120) days after notice from the City to Lessee of such failure (notwithstanding Lessee’s diligent prosecution of its curative efforts), then such failure shall constitute an Event of Default by Lessee hereunder; (c) the occurrence of an event of default, however denominated, by Lessee under the Parking Sublease; (d) the occurrence of an Act of Bankruptcy with respect to Lessee; (e) Abandonment of Leased Premises by Lessee; (f) failure to maintain location in the City of the Team owned by Lessee and located in the City, as required in Section 2.2(i), Section 4.4, and Section 7.18 herein; (g) failure to maintain approval by a Sanctioning Association of the Team owned by Lessee and located in the City, as required in Section 2.2(i) and Section 7.18 herein; or (h) failure to maintain the Leased Premises commensurate with Major League Baseball facilities’ standards and regulations and/or at a level commensurate with the Comparable Facilities, whichever level is determined to be a higher standard by a qualified inspector, as referenced in Section 5.5 herein. Section 11.4. The City’s Remedies. If any Lessee Default shall have occurred and be continuing, the City may, at its sole discretion, have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, other than any notice expressly provided in this Lease: (a) The City may terminate this Lease as provided in Section 11.5 (except that the notice requirements of Section 11.5 shall not be required with respect to the Lessee Default specified in Section 11.3(c) above); (b) Seek another professional baseball team under the governance of a Sanctioning Association to conduct its regularly scheduled home games at the Baseball Stadium; (c) the City may, in its own name and for its own account, without impairing the ability of the City to pursue any other remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute, institute such action against Lessee as may appear necessary or desirable to collect such Rentals and any other amounts then due under this Lease, or to enforce performance and observance of such covenant, condition or obligation of Lessee hereunder, or to recover damages for Lessee's non-payment, non-performance or non-observance of the same; (d) the City may exclude Lessee from possession of the Leased Premises and reenter the same and take whatever action at law or in equity as may appear necessary or desirable to collect the Rentals and any other amounts then due, to enforce performance and observance of any covenant, condition or obligation of Lessee hereunder, or to recover damages for Lessee's non-payment, nonperformance or non-observance of the same; provided that the City shall be required to mitigate its damages to the extent required by law and Section 11.6(b) hereof; and (e) The City may exercise any and all other remedies available to the City at law or in equity, but subject to any limitations thereon set forth in this Lease. Notwithstanding the remedies provided in this Section 11.4, in the case of termination of Page 32 of 43 2nd Amended Restated Stadium Lease Draft the Lease due to Lessee Default specified in Section 11.3(e), (f), (g) or (h) above, Lessee (i) shall pay City all Rentals payable from the date of such Lessee Default through the end of the Lease Term, pursuant to Section 4.3 herein, and Lessee (ii) shall repay City the total of all reimbursements paid to Lessee by City pursuant to Section 7.4 herein from City’s Hotel Occupancy Tax fund during the five year period immediately preceding Lessee’s receipt of City’s initial notice to Lessee of default as provided for herein, and, as to any reimbursements paid to Lessee by City from any source other than City’s Hotel Occupancy Tax fund, Lessee shall pay City Two Hundred Fifty Thousand Dollars ($250,000). In addition to all remedies provided in this Section 11.4, should the City use funds from the City’s Hotel Occupancy Tax fund for reimbursement to Lessee pursuant to Section 7.4 herein, should any use of such Hotel Occupancy Tax funds by Lessee be for a use that is found to be illegal, City shall have no liability in connection thereof and Lessee shall reimburse City for all Hotel Occupancy Tax funds paid to Lessee for such illegal use. Further, should the City use funds from the City’s Hotel Occupancy Tax fund for reimbursement to Lessee pursuant to Section 7.4 herein, if City should determine that the area hotel revenues that were generated from sports events at the Leased Premises over any five year period following the payment to Lessee of the City’s Hotel Occupancy Tax funds for maintenance, Capital Repair Work, enhancements or upgrades to the Leased Premises (“Lessee-generated H.O.T.”) are not equal to or greater than the amount of the City’s Hotel Occupancy Tax funds that were spent in that previous five year period for such maintenance, Capital Repair Work, enhancements or upgrades to the Leased Premises (“H.O.T paid to Lessee”), then Lessee must reimburse City any deficiency between the H.O.T. paid to Lessee and the Lessee-generated H.O.T. so that City can reimburse their Hotel Occupancy Tax fund by that amount in compliance with Section 351.1076 of the Texas Tax Code. Section 11.5 Termination. Upon the occurrence of a City Default as described in Section 11.1 or a Lessee Default as described in Section 11.3, the non-defaulting Party, in addition to its other remedies at law or in equity, shall have the right to give to the defaulting Party notice (a “Final Notice”) of the non- defaulting Party’s intention to terminate this Lease, after the expiration of a period of thirty (30) days from the date such Final Notice is delivered unless the Event of Default is cured, and upon expiration of such thirty (30) day period, if the Event of Default is not cured, this Lease shall terminate without liability to the non-defaulting Party. If, however, within such thirty (30) day period the defaulting Party cures such Event of Default, then this Lease shall not terminate by reason of such Final Notice. Notwithstanding the foregoing, no Final Notice shall be required and the non-defaulting Party may declare this Lease immediately terminated if the Event of Default with respect to the defaulting Party is an Act of Bankruptcy. In the event of a termination of this Lease by either Party under this Section 11.5, then notwithstanding anything to the contrary set forth in this Lease all obligations of the Parties hereunder automatically shall terminate also, without liability to the other Party. Section 11.6. The Lessee to Remain Liable for Payments; Reletting. (a) Notwithstanding the exercise by the City of its remedies pursuant to Section 11.4 hereof (other than termination), Lessee shall continue to be liable for the payment of all Rentals payable under Section 4.3 hereof and other amounts, if any, payable under this Lease and Lessee shall make such payments at the same times and in the same manner as provided in this Lease. (b) In the event the City elects to exclude Lessee from possession of the Leased Premises and re-enter same, then the City shall use reasonable efforts to relet the Leased Premises for the maximum rental it may reasonably obtain, provided, however, that the City shall have no obligation to relet the Leased Premises to any person who will not use the Leased Premises for the purposes set forth in Section 4.5 hereof. Any such rentals received prior to the stated termination date of this Lease shall be applied first to the payment of expenses incurred by the City in connection with such reletting and second, to the Rentals due hereunder. Page 33 of 43 2nd Amended Restated Stadium Lease Draft Section 11.7. No Remedy Exclusive. No remedy herein conferred upon either party is intended to be exclusive of any other available remedy or remedies, and each such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default granted under this Lease shall impair any right or power or shall be construed to be a waiver thereof, and any such right or power may be exercised from time to time and as often as may be deemed expedient, and the exercise of any one right or remedy shall not impair the right to any or all other remedies under this Lease. NOTWITHSTANDING ANY CONTRARY PROVISIONS HEREOF IN NO EVENT SHALL LESSOR OR LESSEE BE LIABLE UNDER ANY PROVISION OF THIS LEASE FOR LOST PROFITS, INCLUDING LOST OR PROSPECTIVE PROFITS, OR FOR ANY OTHER SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, IN CONTRACT, TORT OR OTHERWISE, WHETHER OR NOT CAUSED BY OR RESULTING FROM THE SOLE OR CONCURRENT NEGLIGENCE OF LESSOR OR LESSEE OR ANY OF THEIR AFFILIATES OR RELATED PARTIES. WITHOUT LIMITING THE FOREGOING, THIS LIMITATION OF LIABILITY SHALL APPLY TO CLAIMS OF LESSOR OR LESSEE ARISING OUT OF THIRD PARTY CLAIMS AGAINST LESSOR OR LESSEE FOR ANY OF THE FOREGOING. Section 11.8. No Additional Waiver Implied By One Waiver; Consents to Waiver. The waiver of either party of any breach by the other party of any covenant, condition or obligation under this Lease shall not operate as a waiver of any subsequent breach of the same or a waiver of any breach of any other covenant, condition or obligation under this Lease, nor shall any forbearance by the non-defaulting party not breaching to seek a remedy for any breach by the other party be a waiver by such non-defaulting party not breaching any of its rights and remedies with respect to such breach or any subsequent breach of the same or with respect to any other breach. Section 11.9. Delay not a Waiver. No delay or omission in the exercise of any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or any acquiescence therein, and every power or remedy given by this Lease may be exercised from time to time and as often as may be deemed expedient. Either party may waive any default which in its opinion has been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted by it under the provisions of this Lease or before the completion of the enforcement of any other remedies under this Lease. No such waiver shall extend to or affect any other existing or subsequent default or impair any rights or remedies consequent thereon. Section 11.10 Declaratory or Injunctive Relief. In addition to the remedies set forth in this Article XI the Parties shall be entitled, in any circumstances they may deem appropriate, to seek injunctive relief prohibiting or mandating action by the other Party for any Event of Default of the other Party or declaratory relief with respect to any matter under this Lease. Section 11.11 Interest on Overdue Obligations. If any sum due hereunder is not paid on the due date thereof, the Party hereto owing such obligation to the other Party shall pay to the other Party interest thereon at the Default Rate, concurrently with the payment of the amount from the date such amount was due until paid. Any payment of interest at the Default Rate pursuant to this Lease shall not excuse or cure any default hereunder. Section 11.12 Attorney’s Fees. The defaulting Party shall pay all of the non-defaulting Party’s reasonable fees and expenses, including reasonable attorneys' fees, in enforcing any covenant to be observed by the defaulting Party or pursuing any remedy upon an Event of Default with respect to such Party. Page 34 of 43 2nd Amended Restated Stadium Lease Draft ARTICLE XII DAMAGE AND CONDEMNATION Section 12.1. Damage and Destruction. (a) If the Leased Premises are destroyed (in whole or in part) or are damaged by fire or other casualty, Lessee shall promptly give written notice thereof to the City. All applicable insurance proceeds shall be applied by the City either to repair, rebuild or restore the property damaged or, if the parties determine and mutually agree that it is impracticable to rebuild the Leased Premises, subject to the provisions of Section 12.1(b), such proceeds shall be transferred to the Corporation to effect the defeasance or prior redemption of obligations issued by the Corporation for the construction of the Baseball Stadium. Any remaining balance after payment for such repair, rebuilding or restoration, or transfer to the Corporation as herein described, shall be retained by the City. Lessee agrees to look solely to its insurance for the replacement and repair of the Removables and shall have all rights to all insurance with respect to, and shall be responsible for repair of, the concession areas to the extent, but no further, the same were equipped by Lessee or concessionaires contracting with Lessee. (b) The City will proceed promptly to repair, rebuild or restore the property damaged or destroyed to substantially the same condition as it existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by Lessee and the City and which will not impair productive capacity or the character of the Leased Premises. If such damage results in an Untenantable Condition, all Rentals shall abate during the period of repair and restoration. Notwithstanding the foregoing, in the event that (a) substantially all of the improvements shall be damaged or destroyed by casualty at any time during the final three (3) years of the Term or (b) any portion of the Leased Premises shall be damaged or destroyed by casualty at any time during the Term and the governmental rules then applicable to the Leased Premises do not permit the restoration of the Leased Premises so as to eliminate an Untenantable Condition, then Lessee may, at its option (exercised with reasonable promptness in the circumstances, but in all events within ninety (90) days after such damage or destruction), terminate this Lease by serving upon the City notice within such period setting forth Lessee’s election to terminate this Lease as a result of such damage or destruction as of the end of the calendar month in which such notice is delivered to the City. Upon the service of such notice and the making of such payments within the foregoing time period, the City shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution (measured as of the date of termination) and this Lease shall cease and terminate on the date specified in such notice with the same force and effect as if such date were the date originally fixed as the expiration date of this Lease and Lessee shall have no further obligations hereunder. Section 12.2. Condemnation. (a) In the event that title to the Leased Premises or the leasehold estate of Lessee in the Leased Premises created by this Lease or any part of either thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under Governmental Authority, or shall be conveyed in lieu thereof, this Lease shall terminate and the City shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution. Any condemnation award attributable to the temporary use or temporary condemnation of the Lease Premises or the leasehold estate created hereby shall be paid to Lessee. If only a part of the Leased Premises or leasehold estate is taken the City will cause any proceeds received by it from any award made in such eminent domain proceedings with respect to the Leased Premises, to be applied towards the restoration of the Leased Premises to substantially the same condition as existed prior to the exercise of the said power of eminent domain. If the City does not receive sufficient proceeds to restore the Leased Premises as set forth above, then Lessee may terminate this Lease and the City shall promptly pay to Lessee the Unamortized Portion of the Lessee’s Contribution (measured as of the date of termination). Page 35 of 43 2nd Amended Restated Stadium Lease Draft (b) The City shall cooperate fully with Lessee in the handling and conduct of any prospective or pending condemnation proceedings with respect to the Leased Premises or any part thereof and will, to the extent it may lawfully do so, permit Lessee to litigate in any such proceedings in the name and behalf of the City and for the purpose of seeking and obtaining a separate award for damage to the Removables, the value of Lessee’s leasehold estate, and damage to Lessee’s business. In no event will the City voluntarily settle, or consent to the settlement of, any prospective or pending condemnation proceeding with respect to the Leased Premises or any part thereof without the written consent of Lessee. Notwithstanding the foregoing, if as a result of any condemnation, an Untenantable Condition exists or if the damage caused thereby occurs during the last three (3) years of the Term, Lessee shall have the right and option to terminate this Lease by providing written notice to the City to such effect whereupon this Lease shall terminate as of the date set forth in such notice and the City shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution. The provisions of this Article XII shall survive the termination of this Lease. ARTICLE XIII MISCELLANEOUS Section 13.1. Amendments, Changes and Modification. No amendment, change, addition to or waiver of any of the provisions of this Lease shall be binding upon the parties hereto unless in writing signed by an Authorized Lessee Representative and the Mayor of the City. Section 13.2. Applicable Law Venue. The Lease shall be governed exclusively by the provisions hereof and by the applicable laws of the State. Venue for any proceeding to enforce this Lease shall be in Nueces County, Texas. Section 13.3. Severability. If any provision of this Lease is held to be illegal, invalid, or unenforceable under present or future laws effective during the Term such provision shall be fully severable and this Lease shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Lease. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Lease a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and still be legal, valid, or enforceable. Section 13.4. Notices and Demands. Any notices or other communications required or desired to be given to the other party hereto shall be given in writing and delivered by courier, overnight delivery service, facsimile transaction or through the U.S. postal service, postage prepaid and by certified mail, return receipt requested, at the following addresses: To the City: City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention: City Manager Fax: (361) 880-3839 With copy to: City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention: City Attorney Fax: (361) 880-3239 Page 36 of 43 2nd Amended Restated Stadium Lease Draft To Lessee: Corpus Christi Baseball Club, L.P. 734 E. Port Ave. Corpus Christi, Texas 78401 Attention: Wes Weigle wweigle@cchooks.com With copy to: Dan O’Neill 501 Crawford Street, Suite 500 Houston, Texas 77002 doneill@astros.com With copy to: Giles Kibbe 501 Crawford Street, Suite 500 Houston, Texas 77002 Section 13.5. References. All references in this Lease to particular Articles or sections are references to Articles or sections of this Lease, unless otherwise indicated. Article and section headings are furnished for convenience only and do not constitute a part of this Lease. References in the singular number in this Lease shall be considered to include the plural, if and when appropriate, and vice versa. Any times referred to herein shall be deemed references to Corpus Christi, Texas, time. Section 13.6. Successors and Assigns. The terms and provisions of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Section 13.7. Multiple Counterparts. This Lease may be executed in multiple counterparts, each of which shall be an original but all of which together shall constitute but one and the same instrument. Section 13.8. Recordation. The City and Lessee shall not record this Lease, but both parties agree, on request of the other, to execute a memorandum of lease in recordable form and complying with applicable laws of the State, which memorandum of lease may be recorded by the requesting party. Section 13.9. Attorneys' Fees. The prevailing party in any litigation related to this Lease shall be entitled to recover from the non-prevailing party or parties the reasonable attorneys' fees and costs incurred by such prevailing party in connection with such litigation. Section 13.10. Time is of the Essence. Time is expressly declared to be of the essence in this Lease. Section 13.11. Landlord/Tenant Relationship. This Lease establishes a landlord/tenant relationship between the parties. It does not create any other type of relationship between the, such as one of agency, partnership, or joint venture. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. Section 13.12 Lessee's Remedial Work. Lessee shall be responsible for performing or causing to be performed, and for paying the cost of performing, any and all corrective or remedial actions required by applicable Governmental Authority to be performed with respect to any environmental event caused by Lessee, or any of its agents, contractors, or subcontractors at any time (“Lessee's Remedial Work”). Lessee shall promptly inform the City and all applicable Governmental Authorities of any environmental event or Hazardous Materials discovered by Lessee (or any agent, contractor or subcontractor of Lessee) in, on or under the Leased Premises and promptly shall furnish to the City any and all reports and other Page 37 of 43 2nd Amended Restated Stadium Lease Draft information available to Lessee concerning the matter. Lessee shall thereafter promptly consult with the City as to the steps to be taken to investigate and, if necessary, remedy such matter. Lessee shall select an independent environmental consultant to evaluate the condition of the Leased Premises and materials thereon and therein, at Lessee's cost and expense. If it is determined pursuant to such evaluation that remediation of the same is required by this Section 13.12, then Lessee shall perform Lessee's Remedial Work at its own cost and expense and with due diligence. Section 13.13 The City's Remedial Work. Subject to the limitation of the City’s Contribution, the City shall be responsible for performing or causing to be performed, and for paying the cost of performing, any and all corrective or remedial actions required by applicable Governmental Authority to be performed with respect to (i) any environmental event caused by the City or any of its agents, contractors or subcontractors or (ii) any Hazardous Materials that were introduced to the Leased Premises on or before the Commencement Date (but excluding Hazardous Materials introduced by Lessee or its agents, contractors or subcontractors at any time) (the “City's Remedial Work”). The City shall promptly inform Lessee and all applicable Governmental Authorities of any such environmental event or any Hazardous Materials discovered by the City (or any agent, contractor or subcontractor of the City) in, on or under the Leased Premises and promptly shall furnish to Lessee any and all reports and other information available to the City concerning the matter. The City shall thereafter promptly consult with Lessee as to the steps to be taken to investigate and, if necessary, remedy such matter. The City shall select an independent environmental consultant to evaluate the condition of the Leased Premises and materials thereon and therein, at the City's cost and expense. If it is determined pursuant to such evaluation that remediation of the same is required by this Section 13.13, then the City shall perform, or cause to be performed, the City's Remedial Work at its own cost and expense and with due diligence. Section 13.14 Settlement By Mutual Agreement. In the event any dispute, controversy or claim between or among the Parties arises under this Lease or is connected with or related in any way to this Lease or any right, duty or obligation arising herefrom or the relationship of the Parties hereunder (a “Dispute or Controversy”), including, but not limited to, a Dispute or Controversy relating to the effectiveness, validity, interpretation, implementation, termination, cancellation or enforcement of this Lease, the Parties shall first attempt in good faith to settle and resolve such Dispute or Controversy by mutual agreement in accordance with the terms of this Section 13.14. In the event a Dispute or Controversy arises, either Party shall have the right to notify the other that it has elected to implement the procedures set forth in this Section 13.14. Within fifteen (15) days after delivery of any such notice by one Party to the other regarding a Dispute or Controversy, the Authorized Representative of the Parties shall meet at a mutually agreed time and place to attempt, with diligence and good faith, to resolve and settle such Dispute or Controversy. Should a mutual resolution and settlement not be obtained at the meeting of the Authorized Representatives for such purpose or should no such meeting take place within such fifteen (15) day period, then either party may by notice to the other Party submit the Dispute or Controversy to mediation. Section 13.15 Covenants Running with the Estates in Land. The Parties hereto covenant and agree that all of the conditions, covenants, agreements, rights, privileges, obligations, duties, specifications, and recitals contained in this Lease, except as otherwise expressly stated herein, shall be construed as covenants running with title to the Leased Premises, and the leasehold estate hereunder, respectively, which shall extend to, inure to the benefit of and bind, the City and Lessee, and their permitted successors and assigns, to the same extent as if such successors and assigns were named as original parties to this Lease, such that this Lease shall always bind the owner and holder of any fee or leasehold interest in or to the Leased Premises, or any portion thereof, and shall bind predecessors thereof except as otherwise expressly provided herein. Page 38 of 43 2nd Amended Restated Stadium Lease Draft Section 13.16 Non-Appropriation. (a) Current Expenses. Except for the funds to be provided pursuant to Section 3.2, the obligations of the City for payment and other monetary obligations under this Lease are each subject to an appropriation and, accordingly, (i) shall constitute a current expense of the City in the fiscal year of the City to which an obligation applies and (b) shall not constitute an indebtedness of the City within the meaning of any applicable governmental rule. Nothing herein shall constitute a pledge by the City of any funds, other than funds designated pursuant to lawful appropriations from time to time to pay any money or satisfy any other monetary obligation under any provision of this Lease. (b) Result of Non-Appropriation. If a non-appropriation occurs in response to a request for a proposed Appropriation, the City shall provide Lessee with written notice of such non-appropriation on or before the twentieth (20th) day after the non-appropriation. Any non-appropriation shall constitute a City Default hereunder. Section 13.17. Authority to Execute. Each of the Parties acknowledges that the individual who has executed this Lease has been duly authorized to execute this Lease. A certified copy of the required City ordinance or action of Lessee’s board of directors has been furnished by each Party to the other Party for attachment to this Lease. Section 13.18. Captions. The captions in this Lease are for convenience only and are not a part of this Lease. The captions do not in any way limit or amplify the terms and provisions of this Lease. Section 13.19. Limitation of Leasehold. City does not warrant its title to the Leased Premises. This Lease and the rights and privileges granted Lessee in and to the Leased Premises are subject to all covenants, conditions, restrictions, and exceptions of record or apparent. Nothing contained in this Lease may be construed to imply the conveyance to Lessee of rights in the Leased Premises that exceed those owned by City. Section 13.20. Non-Discrimination. Lessee warrants that it is and will continue to be an Equal Opportunity Employer. Lessee covenants and agrees that Lessee will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Leased Premises, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. The City hereby reserves the right to take the action as the United States may direct to enforce this covenant. Section 13.21. Not for Benefit of Third Parties. This Lease is only for the benefit of the City and Lessee, and no third party has any rights or claims under this Lease. No provision of this Lease creates a third party claim against the City or Lessee beyond that which may legally exist in the absence of any provision of this Lease. Section 13.22. Other City Ordinances. This Lease and the ordinance that authorized the execution of this Lease do not operate to repeal, rescind, modify, or amend any ordinances or resolutions of the City relating to the use or obstruction of streets, the granting of permits, and any regulations relating to the preservation of order and movement of traffic, or any other ordinances, resolutions, or regulations not specifically set forth in the ordinance authorizing this Lease. Notwithstanding the foregoing, if any of such ordinances or resolutions materially and adversely affects Lessee’s express rights hereunder or Lessee’s ability to operate the Leased premises in accordance with the terms and conditions of this Lease, then Lessee shall have the right to terminate this Lease without further liability to the City. Page 39 of 43 2nd Amended Restated Stadium Lease Draft Section 13.23. Publication. Lessee agrees to pay the costs of newspaper publication of this Lease and the ordinance authorizing the execution of this Lease, as required by the City Charter. - COMPLETED Section 13.24. Surrender. Lessee acknowledges and understands that the City’s agreement to lease the Leased Premises to Lessee is expressly conditioned on the understanding that the Leased Premises must be surrendered, upon the expiration, termination, or cancellation of this Lease, in as good a condition as received, reasonable use and wear, Force Majeure events, acts of God, fire and flood damage or destruction where Lessee is without fault, excepted. Section 13.25. Conditions Precedent. This Lease shall not be effective or binding upon Lessee until such time, if ever, that the following conditions are satisfied: (a) City shall have acquired the Land and Leased Premises from the Port; (b) the City shall have entered into the Parking Area Master Lease with the Port; (c) Lessee’s completion of and satisfaction with its due diligence investigation with respect to the condition of title to the Land and the Land’s compliance with applicable environmental laws, including confirmation that the Land and Leased Premises are free from Hazardous Materials; (d) the Sanctioning Association shall have approved Lessee’s application and request to relocate the Team; and (e) Lessee shall have received such assurances as may be required by Lessee to confirm that lands adjacent to the Leased premises will be restricted against development that would materially and adversely impact Lessee’s operations at the Leased Premises or ability to attract customers including, but not limited to, competitive use restrictions and height restrictions on adjacent buildings so as to prevent shadows from being cast upon the Baseball Stadium’s playing field. - COMPLETED EXECUTED IN DUPLICATE, each of which shall be considered an original, to be effective as of the Effective Date. THE CITY: ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta, Jermel Stevenson, City Secretary Director of Parks and Recreation Date: Date: LESSEE: CORPUS CHRISTI BASEBALL CLUB, L.P. By: Date: Page 40 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT “A” Page 41 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT B - COMPLETED Lessee Buildout of Corpus Christi Ball Park Item Description (or reasonable equivalent) Stadium and Office Fixtures Network/Internet Server includes hardware, software, and installation Admin/Ticket Office computers includes hardware, software, based on estimate of 40 (1) Copiers 2 Kyocera-Mita KM-4030 models (Admin and Ticket Offices) Printers 2 Oki C9300 Color Printers, 1 Samsung SCX-5312F (Press Box) Various individual printers (as needed, estimate of five) Phone System Brookside Technology System, includes phones and installation (2) Office televisions 8 -19 inch TV’s Office Furniture Includes desks, chairs, cubicles, plants, various decorative items (Admin, Ticket, & Press) Security System Based on Diebold system installed at Dell Diamond Refrigerator for Offices 2 Whirlpool 20.9 cubic foot (Admin and Ticket) Microwave for Offices 2 (Admin and Ticket) Office window shades Basic blinds Ticket System Dependent on type of system implemented Office Art Acquisition and framing of 60 pieces (Admin, Ticket, & Press) Point of Sale System Based on Retail Automation Systems version at Railyard Radios Based on Aircom Electronic Supply system used at Dell Diamond Maintenance materials Vaccuums/Blowers/Brooms/Hoses/Etc. Concession equipment Based on kitchen/stands/equipment for 6,000 seat, 20 suite stadium Cup Holders Golf Carts 4 needed for maintenance / game day crew Signage Based on total used at Dell Diamond Weather Computer Based on KVUE system at Dell Diamond EMS Defibrillator Wheel Chairs Two needed Scissor Lift for wheelchairs Radar Board Direct TV or Cable System Inflatables Sportscourt Swimming Pool Rockwall Basketball Goal and Rainbow Play System Picnic Tables Instant Replay-click effect to be used with the scoreboard Switcher to be used with the scoreboard 3 Beta Cams to be used with the scoreboard AV System-click effects based on Ford Audio & Video Pro-AV Animation to be used with the scoreboard Trash Compactor 20 Portable Concession Stands Page 42 of 43 2nd Amended Restated Stadium Lease Draft Club House Free weights/benches/machines Stimulation – Hi Fi System Washers and Dryers Skyline Equipment models in use at Dell Diamond Refrigerators 2 Whirlpool 20.9 cubic foot Stereos Adjustable based on need Furniture Stools, chairs, desks, tables for both Fixtures Televisions 4 -19 inch TVs Garbage Bins Whirlpools Training Tables Oven / Range Microwave Coffee Machines Ice Machines Home & Visitor Field Equipment Batting Cages Same Fielder’s Choice model used at Dell Diamond On Deck Circles Partac Peat Corp. Model (Includes Advertising) Tarps By Covermaster, includes all needed (Field, Mound, etc) Lawn Mowers Greensmaster 3050 (2) (Includes extended warranty) Lawncare equipment Hand powered mowers, trimmers, various tools Backstop From Sport Supply Group Carts Toro Workman 3200 Pitching Machine Infield Cart Toro Sand Pro 2020 BP Materials Screens, etc. Scrubber Safe Suites Artwork Leather Sofas Tables and Chairs Refrigerators Televisions Page 43 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT C Corpus Christi Stadium Minimum Standards 1) Minimum 5,000 fixed chair back seats 2) Berm for 1,000 Fans 3) 360Concourse that can see the field 4) Concessions- 1 Point of Sale for every 200 fans 5) Press Box with 4 Media Bays, writing press area, & Scoreboard Operations area, approximately 2,000 sq. ft. 6) Suites to accommodate 258 people for outside seating 7) Area for a Pool to be constructed with a view of the field 8) Area for kids Play Zone and Interactive Area 9) Stadium Club, approximately 2,500 sq. ft. 10) Team Offices for 20 year round full time staff, approximately 3,000 sq. ft. 11) Ticket Office & Ticket Windows at Gates 12) Area for year round Novelty Store, approximately 1,500 sq. ft. 13) LED Video Scoreboard 14) Lighted Outside Stadium Marquee, with message changing capabilities 15) Kitchen/Commissary – Storage for both wet and dry food storage 16) Home & Visitor Clubhouses to Dell Diamond Standards 17) Novelty & Retail Storage, approximately 1,000 sq. ft. 18) Grounds Crew Garage 19) Batting Cages 20) Staff Locker Rooms, Umpire Rooms, per NAPBL Standards 21) Stadium Concourse above seating sections 22) Field Drainage System – to Dell Diamond Standards 23) “AAA” Lighting Standards, per NAPBL Standards 24) Restrooms to city-potty parity code 25) Parking- minimum 1,500 spaces adjacent to the stadium 26) Dugouts to Dell Diamond Standards 27) Home & Visitor Bullpens in the outfield and accessible to fans 28) Field access for grounds crew including trucks & tractors 29) Distributed Sound System 30) Flag Poles & Foul Poles 31) Advertising Signage – Cabinets & Backlit Signs includes on field and in concourse and all related wiring and data cabling Page 44 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT D Purchasing Policy [To Be Attached] Page 1 of 43 2nd Amended Restated Stadium Lease Draft SECOND AMENDED AND RESTATED STADIUM LEASE AGREEMENT This Second Amended and Restated Stadium Lease Agreement (“Lease”) is made and entered into this day of , ____, by and between the CITY OF CORPUS CHRISTI, TEXAS (“City”), a Texas home rule municipal corporation, and CORPUS CHRISTI BASEBALL CLUB, LP (“Lessee”), a limited partnership organized and existing under the laws of the State of Texas (the City and Lessee are sometimes referred to herein individually as a “Party” and collectively as the “Parties”); W I T N E S S E T H: WHEREAS, City and Round Rock Baseball, Inc. (RRB) entered into a stadium lease agreement, approved by Corpus Christi City Council by Ordinance No. 025662 on April 24, 2004, (“Original Lease”) under which RRB leased from City the Leased Premises (hereinafter defined) for a base lease term of fifteen (15) years from the Commencement Date (hereinafter defined) plus two (2) additional optional five (5) year lease extensions; and WHEREAS, the Parties entered into an amendment to the Original Lease, approved by Corpus Christi City Council by Ordinance No. 027476 on November 13, 2007; WHEREAS, Lessee is the successor-in-interest to RRB under the Original Lease pursuant to that certain Assignment from RRB to Lessee dated June 3, 2011; and WHEREAS, the Parties entered into a First Amended and Restated Stadium Lease Agreement, approved by Corpus Christi City Council by Ordinance 029941 on August 27, 2013; and WHEREAS, the Baseball Stadium (Leased Premises) needs enhancements, upgrades and repairs; and WHEREAS, Lessee previously agreed to spend no less than Three Hundred Fifty Thousand Dollars ($350,000) annually on such Capital Repair Work, capital improvements, facilities maintenance, enhancements, upgrades and repairs to the Leased Premises, to be approved by City as described herein, beginning in the year 2013 and through the end of this amended Lease’s Term, and further agreed to extend the base Lease Term from fifteen (15) years to thirty (30) years, and to make corresponding rent payments, in consideration for City reimbursing Lessee up to One Hundred Seventy Five Thousand Dollars ($175,000) annually after completion of and Lessee’s payment for such enhancements, upgrades and repairs to the Leased Premises; and WHEREAS, City and Lessee now wish to amend the Original Lease (as amended November 13, 2007 and August 27, 2013) and to fully restate in this Lease the terms and conditions therein in order to provide additional funding for proper maintenance, enhancements and upgrades necessary to ensure the long-term sustainability of the City property which comprise the Leased Premises. NOW THEREFORE, in consideration of the rents herein required to be made by Lessee, and the covenants and agreements hereinafter contained to be kept and performed by the City and Lessee, the City does by these presents demise, lease and let unto Lessee, for the term and upon and subject to the terms and conditions hereinafter stated, the Leased Premises: ARTICLE I DEFINITIONS Section 1.1. Definitions. In addition to terms defined elsewhere in this Lease, the following terms, for the Page 2 of 43 2nd Amended Restated Stadium Lease Draft purposes of this Lease, shall have the meanings set forth below: (a) “Abandonment of Leased Premises” means that the Leased Premises become vacant or deserted for a continuous period of sixty (60) days. (b) “Act of Bankruptcy” means the commencement of a bankruptcy or similar proceeding by or against the City or Lessee, including, but not limited to, the following: the making of a general assignment for the benefit of creditors, the commencing of a voluntary or involuntary case under the Federal Bankruptcy Code or the filing of a petition thereunder, petitioning or applying to any tribunal for the appointment of, or the appointment of, a receiver, or any trustee for a substantial part of the assets of such person, commencing any proceeding under any bankruptcy, reorganization, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; provided, however, that with respect to the filing of an involuntary petition in Bankruptcy or other involuntary commencement of a bankruptcy or similar proceeding, such petition or proceeding shall fail to be dismissed within ninety (90) days of its filing or commencement. (c) “Affiliate” means a Person who (i) directly or indirectly controls, is controlled by or under common control with, Lessee; (ii) owns directly or indirectly ten percent (10%) or more of the equity interests of Lessee; or (iii) is a general partner, officer, director, non-financial institution trustee or fiduciary of Lessee or of any person described in clauses (i) or (ii). For purposes of this definition, the term “control” (including the terms “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether though ownership of voting securities, by contract, or otherwise. (d) “Approved Procurement Practices” means purchasing of goods and services conducted in a manner that assures the City that the funds are being spent prudently and in accordance with the Purchasing Policy . Any goods or services purchased shall be done so in accordance with the Purchasing Policy. Purchasing processes shall be subject to audit by the City. All purchases of fixtures and capital improvements shall be purchased by Lessee as purchasing agent for the City, and such purchases shall be in the name of the City. (e) “Architect” means HKS, Inc. (f) “Architect’s Contract” means the services contract between the City and the Architect, and approved by Lessee, for, among other things, the design of the Project Improvements, the preparation of the Project Plans, and construction administration services, as the same may be amended, supplemented, modified, renewed, extended or replaced from time to time with the consent of the City and Lessee. (g) “Authorized Representatives” means such officers, employees or other representatives of the City and Lessee, respectively, authorized by such party to act on its behalf under Section 13.14 of this Lease as certified to the other in writing. (h) “Baseball Stadium” means the baseball stadium, which was constructed on the Land. (i) “Business Day” means any day which is not a Sunday, a Saturday, or a legal holiday of the City. (j) “Capital Repair Work” shall have the meaning ascribed to it in Section 7.1. (k) “City” means the City of Corpus Christi, Texas, a home-rule city organized and existing under the laws of the State. Page 3 of 43 2nd Amended Restated Stadium Lease Draft (l) “City Default” shall have the meaning ascribed to it in Section 11.1. (m) “City’s Contribution” shall mean the maximum sum of $21,500,000.00 toward the payment of Project Costs. Notwithstanding anything herein to the contrary, the Parties understand that the City is under no obligation to spend more than $21,500,000.00 for Project Costs. (n) “City’s Remedial Work” shall have the meaning ascribed to it in Section 13.13. (o) “Commencement Date” means April 4, 2005, that being the date on which Lessee opened the Baseball Stadium for an open to the public general admission event. (p) “Comparable Facilities” means the minor league baseball stadiums in Round Rock, Texas (Dell Diamond), and Frisco, Texas; provided, however, that in determining compliance with any “Comparable Facilities” standard or requirement set forth in this Lease (i) such stadiums shall be looked at together and no one stadium nor any individual system or component at any such stadium shall be looked at alone and (ii) if the standards applicable to such stadiums or substantially similar quality stadiums taken as a whole should materially change during the Term in such a manner as to result in a material variation in the manner in which the stadiums had previously been operated or maintained and such change has a material and adverse impact on Lessee’s costs to operate and maintain the Leased Premises, then Lessee shall not be required to adopt such increased standards. (q) “Corporation” means the Corpus Christi Business and Job Development Corporation, a nonstock, nonprofit industrial development corporation created by the City under the laws of the State, including specifically Section 4A of Article 5190.6 Texas Revised Civil Statutes. (r) “Corporation Project Agreement” means the Project Agreement dated September 30, 2003, between the City and the Corporation executed in connection with the issuance of obligations by the Corporation to fund the City’s Contribution. (s) “Concession Improvements” means the interior and exterior improvements, build out and equipment required or desired by Lessee for concession operations. (t) “Controversy” shall have the meaning ascribed to it in Section 13.14. (u) “Default Rate” means the lesser of (i) the Prime Rate plus three percent (3%) and (ii) the maximum per annum rate of interest permitted to be charged either party by applicable law. (v) “Dispute” shall have the meaning ascribed to it in Section 13.14. (w) “Effective Date” means April 24, 2004. (x) “Event of Default” shall have the meaning ascribed to it in Article XI. (y) “Final Completion” means the final completion of all aspects of such work and improvements in accordance with all Governmental Rules and in accordance with the requirements for the same contained in this Lease and the Project Construction Documents and Minimum Stadium Requirements, including, Page 4 of 43 2nd Amended Restated Stadium Lease Draft but not limited to, the completion of all punch-list items. Substantial Completion of such work and improvements is a prerequisite to Final Completion of the same. (z) “Final Notice” shall have the meaning ascribed to it in Section 11.5. (aa) “Force Majeure” means the occurrence of any of the following, but only for the period of time, if any, that the performance of a Party’s material obligations under this Lease are actually delayed or prevented thereby: Acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States of America, or of any state thereof, or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, tornadoes, storms, floods, washouts, droughts, arrests, restraining of government and people, civil disturbances, explosions, nuclear accidents, wars, part or entire failure of utilities, shortages of labor, material, supplies or transportation, or any other cause not reasonably within the control of the party claiming inability to perform due to such cause. (bb) “Governmental Authority” means any federal, state or local government, agency, court, commission or other body with jurisdiction of the matter in question. (cc) “Hazardous Materials” means any substance or material, including asbestos, now or hereafter defined or listed by any Governmental Authority as a regulated or hazardous substance, material, or waste and shall include, without limitation, petroleum products. (dd) “Land” means the land described as “Lot 2” on Exhibit “A” attached hereto and made a part hereof. (ee) “Lease Year” means each consecutive twelve (12) month period commencing on the Commencement Date and thereafter on each anniversary of the Commencement Date. (ff) “Leased Premises” means (i) the Land; (ii) the Baseball Stadium; and (iii) any other buildings, structures, additions, improvements, equipment, fixtures and facilities directly related to the Baseball Stadium, and all appurtenances to the same, which are in the future constructed on the Land, pursuant to the terms and conditions herein. (gg) “Lessee” means Corpus Christi Baseball Club, L.P., a limited partnership duly organized and validly existing under the laws of the State and authorized to do business in the State, or any successor thereto or assignee thereof permitted by this Lease. (hh) “Lessee Default” shall have the meaning ascribed to it in Section 11.3. (ii) “Lessee Requested Modifications” shall have the meaning ascribed thereto in Section 3.6. (jj) “Lessee’s Contribution” means the aggregate sums, up to $3,000,000, that Lessee shall contribute to the Project which will first be used for construction of Concession Improvements, the equipping of the Project and other build out obligations of Lessee hereunder (including, but not limited to, the Minimum Lessee Improvement Requirements) and thereafter, at Lessee’s option, for Project construction in general. Notwithstanding anything herein to the contrary, the Parties understand that Lessee is under no obligation to contribute more than $3,000,000.00 for such purposes, provided such limit shall not apply to the Minimum Lessee Improvement Requirements. For purposes hereof, the term “contribute” shall mean and include, without limitation, monies paid to third parties by Lessee for build out and Concession Improvements, the fair value of equipment, machinery, tools and other property now owned by Lessee that is relocated to the Baseball Stadium and the value of equipment, furnishings and Concession Page 5 of 43 2nd Amended Restated Stadium Lease Draft Improvements provided to the Baseball Stadium by Lessee’s concessionaires or by Lessee’s other vendors. Upon completion of Lessee’s build out work or any termination of this Lease prior to completion of such work, Lessee shall notify the City in writing of the total amount of the Lessee’s Contribution and provide the City with supporting documentation reasonably necessary to verify Lessee’s determination of such amount. (kk) “Lessee’s Remedial Work” shall have the meaning ascribed to it in Section 13.12. (ll) “Minimum Lessee Improvement Requirements” means all improvements, fixtures, equipment, systems, facilities, features and amenities which are described and specifically identified as Lessee’s responsibility in the Project Plans approved by Lessee as of the Effective Date and, whether or not shown on such Project Plans, the items described on Exhibit “B” attached hereto and made a part hereof. (mm) “Minimum Stadium Requirements” means all improvements, fixtures, equipment, systems, facilities, features and amenities which are described in the Project Plans approved by Lessee as of the Effective Date and which are not specifically identified as Lessee’s responsibility and, whether or not shown on such Project Plans, the items described on Exhibit “C” attached hereto and made a part hereof. (nn) “Mortgage” shall have the meaning ascribed to it in Section 10.5. (oo) “Operating Expenses” shall mean the costs to operate, repair, and maintain the Project Improvements. (pp) “Parking Area” means the lands adjacent to the Land identified as “Lot 1” and the “South Parking Area” on Exhibit “A” attached hereto and made a part hereof. (qq) “Parking Area Master Lease” means that certain lease from the Port (as lessor) to the City (as lessee) covering the Parking Area. (rr) “Parking Area Sublease” means the sublease from the City (as sublessor) to Lessee (as sublessee) covering the Parking Area. (ss) “Person” means any association, individual, corporation, governmental entity, partnership, joint venture, business association, estate or any other organization or entity. (tt) “Port” means the Port of Corpus Christi Authority and its successors and assigns. (uu) “Prime Rate” means the per annum rate of interest from time to time published by the Wall Street Journal as the “prime rate”. (vv) “Project” means the Baseball Stadium, together with all the other Project Improvements. (ww) “Project Budget” shall mean the total Project budget approved by Lessee, as from time to time amended with Lessee’s approval, for all Project Costs, broken down in reasonable detail by “hard” and “soft” cost categories, including, but not limited to, separate line items for debt service requirements (net of earned interest on invested funds), the amount payable under each of the Project Construction Documents, allowances, contingencies, and pre-opening expenses. (xx) “Project Change Order” shall have the meaning ascribed to it in Section 3.9. Page 6 of 43 2nd Amended Restated Stadium Lease Draft (yy) “Project Completion Date” means the later of (i) the date of Final Completion of all of the Project Improvements Work in accordance with all of the requirements of this and other transaction documents, (ii) payment in full of all Project Costs, and (iii) the Lease Commencement Date. (zz) “Project Construction Contract” means the construction contract between the City and the Project Contractor, and approved by Lessee, for the construction of the Project Improvements, as the same may be amended, supplemented, modified, renewed, extended or replaced from time to time with the consent of the City and Lessee. (aaa) “Project Contractor” means the general contractor selected by the City and approved by Lessee. (bbb) “Project Construction Documents” means any and all contracts, documents or other instruments entered into by or on behalf of the City, and approved by Lessee, for the design, management, monitoring or performance of the Project Improvements Work, including, but not limited to, the Architect’s Contract, Project Plans, and Project Construction Contracts. (ccc) “Project Costs” means all of the costs incurred or to be incurred on behalf of the City in order for the City to fulfill its obligations under this Lease to cause Final Completion of the Project Improvements Work, including, but not limited to: (a) Land acquisition costs; (b) all amounts payable under any of the Project Construction Documents; (c) costs to obtain necessary easements or rights of way; (d) the following City development costs and fees: structural steel inspection fee, oversize fee, regional detention fee, and water meter fee; (e) legal costs; (f) costs for project management services; (g) all other costs incurred by the City and paid to third parties to fulfill its obligations under the Lease and Project Construction Documents to develop, construct, equip or furnish the Project including management fees and fees and expenses of architects, engineers, testing firms, accountants, attorneys, and other consultants necessary to complete the design, development, construction, equipping and furnishing of the Project Improvements, including Project Change Orders approved by Lessee; (h) all other costs in connection with the operation and maintenance of the Land prior to the Commencement Date, including all remediation and abatement costs arising from removal of Hazardous Materials or addressing environmental conditions; (i) all financing costs incurred by the Corporation on behalf of the City with respect to the Project including any reserve funds or capital or repair accounts; and (j) all insurance premiums on all policies of insurance required to be carried by the City under this Lease. Notwithstanding anything herein to the contrary, the City’s overall contribution to Project Costs shall not exceed $21,500,000.00. The term “Project Costs” excludes, however, any costs paid from the proceeds of insurance recoveries. (ddd) “Project Improvements” means the Baseball Stadium, the parking improvements and all other improvements, amenities and appurtenances to be situated on the Land (including the Minimum Stadium Requirements), all as described more fully in the Project Plans prepared by the Architect and approved by Lessee. (eee) “Project Improvements Work” means the design, development, construction, furnishing, equipping and placement in service and Final Completion of the Project Improvements at and within the Land in accordance with this Lease, the Project Construction Documents, the Minimum Stadium Requirements, all applicable Governmental Rules and the Project Plans. (fff) “Project Plans” means individually and collectively, the concept drawings, schematic drawings, design development drawings and detailed working drawings and specifications for the Project Improvements (including the Minimum Stadium Requirements) prepared by the Architect in the form approved by the City and Lessee. Page 7 of 43 2nd Amended Restated Stadium Lease Draft (ggg) “Purchasing Policy” means the policy attached hereto as Exhibit D. (hhh)“Rentals” shall have the meaning ascribed thereto in Section 4.3. (iii) “Removables” shall have the meaning ascribed thereto in Section 5.5. (jjj) “Sanctioning Association” means the Texas League, and the National Association of Professional Baseball Leagues, Inc., and their respective successors, if any, and any replacement or additional baseball association that Lessee certifies to the City is a nationally recognized baseball association that sanctions professional baseball teams affiliated with major league baseball. (kkk)“Seat Rights” shall have the meaning ascribed thereto in Section7.10. (lll) “State” means the State of Texas. (mmm) “Substantial Completion” (or “Substantially Complete”) means the stage in the progress of the Project Improvements Work when the Project Improvements Work is (i) sufficiently complete in accordance with the Project Construction Documents and Minimum Stadium Requirements so that Lessee can occupy and use the Project Improvements for their intended purpose, (ii) the Minimum Stadium Requirements and all other improvements, equipment and systems included in the Project Improvements are operational as designed and scheduled, (iii) all designated or required governmental inspections and certifications have been made and posted, (iv) the Project Contractor’s instruction of Lessee’s designated personnel in the operation of equipment and systems has been completed, (v) all final finishes contemplated by the Project Construction Documents and Minimum Stadium Requirements are in place and (vi) the only Project Improvements Work that remains is minor in nature, has been identified on a punch list approved by Lessee, and may be completed without interfering with Lessee’s operation of the Leased Premises. (nnn) “Target Substantial Completion Date” shall have the meaning ascribed thereto in Section 3.5. (ooo) “Targeted Tax” means any admission tax, parking tax, facility use tax and any other tax imposed by the City not in effect as of the date hereof that either by its terms or effect of its application is not of general application but is designed to be applicable to Lessee, the revenues from Lessee’s conduct of its business, the activities on the Leased Premises, or Lessee’s personnel. (ppp) “Team” means a minor league baseball franchise owned by Lessee or its Affiliate and approved by the Sanctioning Association to play baseball in the Baseball Stadium and which has a player development contract associated with a Major League Baseball franchise. (qqq) “Term” shall have the meaning ascribed thereto in Section 4.2. (rrr) “Unamortized Portion of the Lessee’s Contribution” shall mean, as of the date of determination thereof, the unamortized portion of the Lessee’s Contribution based on a ten (10) year straight line amortization of the actual total amount of the Lessee’s Contribution, prorated based on the number of days in the Lease Year to the extent the date of determination is not at the end of a Lease Year [i.e., the Unamortized Portion of Lessee’s Contribution shall be nine-tenths (9/10ths) of the actual total amount of the Lessee’s Contribution at the end of the first Lease Year and shall be eight-tenths (8/10ths) at the end of the second Lease Year and so on until the end of the tenth Lease Year at which time the Unamortized Portion of the Lessee’s Contribution shall be zero]. Page 8 of 43 2nd Amended Restated Stadium Lease Draft (sss) “Untenantable Condition” shall mean the existence of any one of the following conditions but only to the extent the same is not the result of the failure of Lessee to perform its obligations as required under this Lease: (i) The Leased Premises are not in compliance with rules and regulations in effect on the Effective Date of the applicable Sanctioning Association for any reason, the result of such non- compliance is that the Sanctioning Association, or its rules, prohibit Lessee or its Affiliate from conducting sanctioned games or authorizes the Sanctioning Association to assess fines or penalties, and the City fails to cause the same to be placed into compliance within a reasonable time following the City’s receipt of written notice of such non-compliance (the City hereby agreeing to perform such work as necessary to keep the Leased Premises in compliance, subject to the limitation on the City’s Contribution as provided herein); (ii) The use or occupancy of the Leased Premises for baseball games is not permitted under applicable governmental rule or is restricted in any material respect under applicable governmental rule, including, but not limited to, denial of access; or (iii) The use or occupancy of thirty percent (30%) or more of any of the public seating areas, other public areas, or parking areas, within the Leased Premises during the Team’s season is materially restricted by the City or are unusable (and not replaced by suitable temporary accommodations) for a period of ninety (90) consecutive days or ninety (90) days out of any consecutive one hundred eighty (180) day period; or (iv) The use or occupancy of thirty percent (30%) or more of the private suites or fifteen percent (15%) or more of the concession areas within the Leased Premises is materially restricted by the City or unusable during the Team’s season for a period of sixty (60) consecutive days or ninety (90) days out of any consecutive one hundred eighty (180) day period. (ttt) “Warranty Claim” shall have the meaning ascribed to it in Section 3.3 hereto. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1. Representations and Warranties by the City. The City makes the following representations and warranties as the basis for the undertakings on its part herein contained: (a) The City is a home rule municipal corporation, existing and in good standing under the laws of the State, and has the power to enter into the transactions contemplated by this Lease and to carry out its obligations hereunder. By written ordinance, the City has duly approved the execution and delivery of this Lease. (b) The City has taken all action and has complied with all provisions of law with respect to the execution, delivery and performance of this Lease and each of the Project Construction Documents to which it is a party and the due authorization of the consummation of the transactions contemplated hereby and thereby, and this Lease and each of the Project Construction Documents to which it is a party have been duly executed and delivered by, and constitute the valid and legally binding obligation of, the City, enforceable against the City in accordance with their respective terms. (c) Neither the execution and delivery of this Lease or the Project Construction Documents to which the City is a party, the consummation of the transactions contemplated hereby or thereby, nor the fulfillment Page 9 of 43 2nd Amended Restated Stadium Lease Draft of or compliance with the terms and conditions of this Lease or such Project Construction Documents, violate any law or regulation, or any judicial order, judgment, decree, or injunction, conflict with or results in a breach of any of the terms, conditions or provisions of any restriction, ordinance or any agreement or instrument to which the City is now a party or by which it is bound, or constitute a default under any of the foregoing, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the City under the term of any instrument or agreement. (d) There is no litigation now pending or, to the City’s knowledge, threatened challenging the powers of the City or in any way affecting this Lease. (e) The execution and delivery of this Lease and each of the Project Construction Documents to which the City is a party, the consummation of any of the transactions contemplated hereby or thereby or compliance with the terms and provisions hereof or thereof do not and will not (i) violate any law or regulation or any order or decree of any court or governmental instrumentality applicable to the City, which violation would materially and adversely affect the ability of the City to perform its obligations under this Lease or any of the Project Construction Documents; (ii) conflict with or would result in the breach of, or constitute a default under, this Lease or any of the Project Construction Documents, or any other contract, lease, indenture, loan agreement, mortgage, deed of trust or other agreement or instrument to which the City is a party or by which the City or its property may be bound, which conflict, breach or default would materially and adversely affect the ability of the City to perform its obligations under this Lease or any Project Construction Document; or (iii) violate the charter, articles of incorporation or bylaws of the City. No consent, approval authorization or order of any governmental or regulatory authority, agency, commission or board of arbitration was or will be required in connection with the execution and delivery by the City of this Lease and the Project Construction Document to which it is a party or the consummation of the transactions contemplated hereby or thereby or compliance with the terms and provisions hereof or thereof, except such as have been obtained and are in full force and effect. (f) To the best of the City’s knowledge, no event has occurred and no condition currently exists, which constitutes or may, with the passage of time or the giving of notice, or both, constitute an Event of Default with respect to or on the part of the City under this Lease or any of the Project Construction Documents to which it is a party or that could materially adversely affect the ability of the City to perform its obligations hereunder or thereunder. (g) The Corporation has been duly created by the City, is in good standing under the laws of the State, and has the authority under State law to issue debt to fund the City’s Contribution. Section 2.2. Representations and Warranties by Lessee. Lessee makes the following representations and warranties as the basis for the undertakings on its part herein contained: (a) Lessee is a limited partnership duly organized under the laws of the State and duly qualified to do business in the State, is in good standing in the State, has power to execute and enter into this Lease and by proper corporate action has been duly authorized to execute and deliver this Lease. (b) Each of the agreements to which it is a party including this Lease, have been duly executed and delivered by duly authorized officers of Lessee, and constitute valid and binding obligations of Lessee, enforceable against Lessee in accordance with their respective terms. (c) Neither the execution and delivery of this Lease, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Lease, violate any law Page 10 of 43 2nd Amended Restated Stadium Lease Draft or regulation, or any judicial order, judgment, decree, or injunction, conflict with or results in a breach of any of the terms, conditions or provisions of any restriction, ordinance or any agreement or instrument to which Lessee is now a party or by which it is bound, or constitute a default under any of the foregoing, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of Lessee under the term of any instrument or agreement. (d) No approvals or consents, other than those that have been or will in normal course be obtained, are necessary in order for Lessee to execute and deliver this Lease. (e) There is no litigation now pending or, to Lessee's knowledge, threatened, challenging the corporate existence of Lessee and there is no pending, or to Lessee's knowledge, threatened action or proceeding before any court or administrative agency that individually (or in the aggregate in the case of any group of related lawsuits) is expected to have a material adverse effect on the financial condition of Lessee or the ability of Lessee to perform its obligations under this Lease. (f) The execution and delivery of this Lease, the consummation of any of the transactions contemplated hereby or compliance with the terms and provisions hereof do not and will not (i) violate any law or regulation or any order or decree of any court or governmental instrumentality applicable to Lessee or any of its Subsidiaries, which violation would materially and adversely affect the ability of Lessee to perform its obligations under this Lease; (ii) conflict with or would result in the breach of, or constitute a default under, this Lease, or any other contract, lease, indenture, loan agreement, mortgage, deed of trust or other agreement or instrument to which Lessee is a party or by which Lessee or its property may be bound, which conflict, breach or default would materially and adversely affect the ability of Lessee to perform its obligations under this Lease; or (iii) violate the charter, articles of incorporation or bylaws of Lessee. No consent, approval authorization or order of any governmental or regulatory authority, agency, commission or board of arbitration was or will be required in connection with the execution and delivery by Lessee of this Lease or the consummation of the transactions contemplated hereby or compliance with the terms and provisions hereof, except such as have been obtained and are in full force and effect. (g) Lessee has duly and validly obtained all material certificates, licenses and permits from all public authorities, both federal and state, required as of the Effective Date to enable Lessee to carry on its business as it is now conducted and to enter into this Lease. (h) To the best of Lessee’s knowledge, no event has occurred and no condition currently exists, which constitutes or may, with the passage of time or the giving of notice, or both, constitute an Event of Default with respect to or on the part of Lessee under this Lease or that could materially adversely affect the ability of Lessee to perform its obligations hereunder. (i) Lessee or its Affiliate owns and will continue to own a AA minor league baseball team approved by a Sanctioning Association that is affiliated with a major league baseball team; Lessee or its Affiliate shall locate such team in the City and play its regularly scheduled home games and post-season play-off home games at the Baseball Stadium (subject to temporary changes in “home” vs. “away” status as may be directed from time to time by the Sanctioning Association). ARTICLE III PROJECT DEVELOPMENT – COMPLETED The Parties acknowledge that construction of the Baseball Stadium has been completed and the Lessee has taken possession of the Leased Premises. To the extent that any provision in this Article III or elsewhere in Page 11 of 43 2nd Amended Restated Stadium Lease Draft this Lease references actions related to construction of the Baseball Stadium, apart from annual maintenance, Capital Repair Work, enhancements and upgrades contemplated by Article VII and any Alterations, or additional Improvements contemplated by Article V, the Parties agree that such provision has been performed and such work has been completed. Section 3.1. Project Design. The City will enter into the Architect’s Contract and shall be solely responsible for the payment of all fees and reimbursable expenses due and payable from time to time under the Architect’s Contract notwithstanding any contrary provision hereof. Subject to Force Majeure, the City shall be responsible for the timely completion of the design of the Project. The Project Plans shall be in compliance with applicable written rules and regulations of the Sanctioning Association in effect on the Effective Date and permit Final Completion of the Project Improvements Work for an amount not to exceed the City’s Contribution. Lessee shall have the right to approve the Architect’s Contract and the Project Plans and agrees to assist the City with respect to ensuring such compliance with the applicable rules and regulations of the Sanctioning Association. Section 3.2. Project Improvements. The City agrees to fund the Project Improvements in an amount not to exceed the City’s Contribution. Should Lessee require any changes to the Minimum Stadium Requirements or any changes to Project Plans that have been previously approved by Lessee in writing and such changes result in the Project Costs exceeding the City’s Contribution, Lessee agrees to be solely responsible for the payment of such amounts in excess of the City’s Contribution, and shall timely deposit with the City in such manner as the City and Lessee shall determine such additional amounts for the purpose of funding the Project Improvements. The City, with Lessee’s approval, shall enter into a Project Construction Contract with the best value for the Project Improvements Work for the Project Improvements, in accordance with this Lease, the Project Plans, the Minimum Stadium Requirements and all applicable Governmental Rules. The Project Plans (including detailed plans and specifications) shall be developed and prepared by the Architect at the City’s expense and direction and in cooperation with Lessee and submitted by the City to Lessee for its approval which will not be unreasonably withheld, conditioned or delayed (it being understood, however, that Lessee may withhold its approval in its sole discretion to the extent it believes that the City’s Contribution will not be sufficient to fully fund the construction of and cause the Final Completion of the Project Improvements in accordance with the Minimum Stadium Requirements). Lessee shall have ten (10) days to review the Project Plans and if they do not object within such time, they are deemed approved. In the event there is a dispute between the City and Lessee regarding the Project Plans, provided they (i) are in compliance with applicable written rules and regulations of the Sanctioning Association in effect on the Effective Date and (ii) include all of the Minimum Stadium Requirements, the City shall have the final approval of the Project Plans. Any changes to the final Project Plans shall be subject to the prior approval of the City and Lessee. Any replacement of the Project Contractor following a default by the Project Contractor shall be subject to the approval of Lessee. Section 3.3. Contract Requirements and Warranty Claims. The City shall ensure that the Project Construction Contract for the Project Improvements and all subcontracts for the supply of equipment or systems to the Project Contractor for the Project Improvements shall provide for the assignment of all warranties, maintenance agreements thereunder to Lessee and give Lessee the independent right to enforce the same as an express third party beneficiary thereunder, and permit Lessee to use (but not own) any plans and specifications to which the City is then entitled pursuant to any such contracts. The City covenants and agrees that without the prior consent of Lessee, which consent shall not be unreasonably withheld, conditioned or delayed, the City will not (i) voluntarily, involuntarily, by operation of law or otherwise, sell, assign or transfer any of the maintenance and warranty contracts to any person other than Lessee; (ii) terminate any of the maintenance and warranty contracts; (iii) waive or release any of the respective obligations of any person under any of the maintenance and warranty contracts; or (iv) in any way voluntarily modify or amend any of the maintenance and warranty contracts. Further, the City agrees Page 12 of 43 2nd Amended Restated Stadium Lease Draft that Lessee is a third-party beneficiary of the warranty contracts and hereby conveys, transfers and assigns to Lessee the nonexclusive right to enforce any and all of the respective obligations of any person under the maintenance and warranty contracts, including, but not limited to, any and all representations and warranties thereunder. The City and Lessee shall cooperate with each other in prosecuting any and all warranty and similar claims under any and all contracts or other agreements with third parties for the design, construction, supply, alteration, improvement, maintenance or renewal of the Project Improvements and Leased Premises, including, but not limited to, any and all such claims under the Project Construction Contract (each a “Warranty Claim”). All recoveries from any such Warranty Claims shall be applied, first, to the cost of collection, second, on a proportional basis to the City and Lessee to (x) reimburse Lessee for the cost and expenses incurred in order to repair, restore, renew or replace any part of the Project Improvements or Leased Premises as to which such Warranty Claim relates and which have not been paid out of the Capital Repair Work Account and (y) to reimburse the City for amounts paid to Lessee as the City’s expenses relating to such Warranty Claim. Section 3.4. Access to the Project. Lessee and its agents, contractors, sublessees, licensees, and concessionaires shall have the right of access at normal construction hours during the construction period, for themselves and their authorized representatives, to the Land and the Project Improvements and all portions thereof for the following purposes, without charges or fees or the commencement of rent under this Lease, provided Lessee and all such agents, contractors, sublessees, licensees, and concessionaires (i) notify the City in advance of such proposed entry by any of Lessee’s subtenants, licensees or concessionaires, (ii) do not hinder or interfere with the Project Improvements Work or the activities of the City’s contractors, (iii) take such reasonable protective precautions or measures as the City or the Project Contractor may reasonably request, given the stage of the Project Improvements Work at the time of such entry; and (iv) comply with the provisions of the Project Construction Contract relating to the City’s rights to access: (a) Conducting inspections for purposes of determining compliance with this Lease; (b) Construction and installation of any Concession Improvements and any other improvements permitted by the Lease so long as, in either case, Lessee does not unreasonably interfere with the construction of the Project Improvements Work by the Project Contractor; (c) Construction and installation of any interior tenant finish work, construction and installation of offices for Lessee, use of its offices for ticket sales and promotions and other normal and customary business, and equipping locker room and related facilities for Lessee; (d) Installation of any additional fixtures or equipment desired by Lessee; (e) Tours of the Land and Project Improvements sponsored by Lessee; and (f) The erection and maintenance of billboards and signs during the construction period consistent with Lessee’s naming rights and advertising rights under this Lease. Prior to RSR starting any work on the Leased Premises, it shall obtain and cause all of its contractors and subcontractors to obtain separate builder’s risk insurance coverage and comprehensive general liability insurance in amounts and upon terms acceptable to the City (but not exceeding the requirements the City imposes on contractors working on City property). Subject to compliance with the City’s ordinances related to occupancy of buildings, Lessee shall have the right to take possession of its offices (subject to the terms hereof) and use the same for the conduct of Lessee’s normal and customary business. Any entry, access or occupancy provided to Lessee pursuant to the terms of this Section 3.4 shall not be deemed to be acceptance of the Project Improvements Work or commence the Term. Lessee shall be responsible for all utility and other costs associated with taking possession of its offices. Lessee shall cooperate with the City in all aspects of the development and construction of the Baseball Stadium and not unreasonably hinder, delay or interfere with the development and construction of the Project Improvements. Section 3.5. Schedule for Substantial Completion and Liquidated Damages. The City shall cause Substantial Completion of the Project Improvements Work to occur on or before March 24, 2005 (the “Target Substantial Completion Date”). In addition, the City agrees to include in the Project Construction Contract a provision whereby the Project Contractor agrees to pay liquidated damages (i) in the amount of $1,000 per day for each day beyond the Target Substantial Completion Date that the Page 13 of 43 2nd Amended Restated Stadium Lease Draft Project Contractor fails to achieve Substantial Completion, and (ii) in the amount of $100,000 for each scheduled baseball game which Lessee is unable to conduct in the Project Improvements due to the failure of the Project Contractor to have achieved Substantial Completion on or before the Target Substantial Completion Date. For purposes hereof, Lessee will be deemed to be unable to conduct its first scheduled baseball game if Substantial Completion has not been achieved at least ten (10) days prior to the scheduled date of such opening or subsequent game and the $100,000 liquidated damages shall be due and payable for each such game even if the game is in fact played. Notwithstanding anything in this Lease, the Project Construction Documents or any other agreements related hereto to the contrary, Lessee agrees that Lessee’s sole remedy for any delay in Substantial Completion of the Project Improvements Work beyond the Target Substantial Completion Date is to obtain the liquidated damages from the Project Contractor; provided, however, that if Lessee does not actually receive the liquidated damages from the Project Contractor as contemplated hereby within ten (10) days of Lessee’s demand therefore, then Lessee shall have the right to offset all liquidated damage amounts that are due but not received by Lessee as contemplated hereby against the Rentals and/or any other amounts due or to become due to the City pursuant to this Lease; and provided, further, however, that if Substantial Completion has not occurred on or before April 24, 2005, Lessee shall have the right and option to terminate this Lease by written notice to the City and upon delivery of any such notice the City shall pay to Lessee the Unamortized Portion of Lessee’s Contribution (measured as of the date of termination) and Lessee shall have no further liability or responsibility to the City under or in connection with this Lease. Section 3.6. Lessee Requested Additions or Modifications. In the event that Lessee determines that it desires any additions or modifications to the Minimum Stadium Requirements or any changes to Project Plans that have been previously approved in writing by Lessee (“Lessee Requested Modifications”), Lessee shall submit a written request along with plans and specifications for the Lessee Requested Modifications to the City for its approval. In the event that the Lessee Requested Modification results in an increase in the Project Cost over and above the City’s Contribution, such increase shall be the sole responsibility of Lessee, and it will be the sole responsibility of Lessee to timely pay the cost of the Lessee Requested Modifications. After confirming Lessee’s commitment to pay such increase, the City shall direct the Project Contractor to perform the same. Section 3.7. Lessee Build Out. Lessee covenants and agrees that Lessee shall design, construct, and place in service the Concession Improvements, the suites and related build out obligations set forth herein (including the Minimum Lessee Improvement Requirements), or cause the same to be designed, constructed, and placed in service in accordance with the Project Plans and applicable Governmental Rules, all at Lessee’s sole cost and expense. Lessee agrees that when complete such improvements and facilities will be of a quality generally consistent with those contained in Comparable Facilities. Section 3.8. Performance and Payment Bonds. Prior to Lessee commencing any construction project estimated to cost greater than $500,000, Lessee shall provide to the City for its approval a statutory form payment and performance bond for such project. Section 3.9. Change Orders. No changes in plans or specifications shall be made to the Project, the Project Construction Contract, the Project Plans or Minimum Stadium Requirements unless agreed to in a written change order (“Project Change Order”) approved in writing by the City and Lessee. Unless otherwise agreed with respect to any specific Project Change Order, the Party submitting the proposed Project Change Order shall be responsible for all costs relating to such Project Change Order. ARTICLE IV LEASE OF LEASED PREMISES Section 4.1. Grant. Page 14 of 43 2nd Amended Restated Stadium Lease Draft (a) In consideration of and pursuant to the covenants, agreements, and conditions set forth herein, the City does hereby lease, let, demise, and rent exclusively unto Lessee, and Lessee does hereby rent and lease from the City, the Leased Premises. On the Commencement Date, the City will give and deliver to Lessee exclusive possession and occupancy of the Leased Premises free of all tenancies and parties in possession of such Leased Premises (other than those arising by, through or under Lessee) and free of Hazardous Materials. (For the purpose of this section and Section 13.26, the Leased Premises is considered free of Hazardous Materials, if it has been remediated to the satisfaction of the appropriate Governmental Authority.) The City, if necessary, will provide Lessee with the appropriate consent of the Governmental Authority that the Leased Premises meets the requisite standards of being free of Hazardous Materials. The City shall deliver the Leased Premises to Lessee on the Commencement Date in good condition and repair and in a clean and orderly condition. (b) The City covenants for the Term that Lessee, upon paying the Rentals and upon keeping, observing and performing the terms, covenants and condition of this Lease to be kept, observed and performed by Lessee, including, without limitation, the terms, covenants and conditions set forth in Article VI of this Lease, shall and may quietly and peaceably hold, occupy, use, and enjoy the Leased Premises without ejection or interference by or from the City, subject only to the terms and provisions set forth herein. (c) The City covenants that Lessee’s leasehold interest in, and other rights to, the Leased Premises arising under this Lease shall be senior and prior to any lien, lease or other encumbrance existing, created or arising in connection with the acquisition, development, construction or financing of the Leased Premises or the Project Improvements Work or any portion thereof. The foregoing does not extend to any liens, leases or encumbrances arising by, through or under Lessee or its agents acting in such capacity. Section 4.2. Term. The term (the “Term”) of this Lease shall commence upon the Commencement Date and shall continue for a period of thirty (30) years thereafter, unless earlier terminated in accordance with the terms hereof; provided, however, that if the expiration date of the Term shall fall during a baseball season, then the Term shall be automatically extended to the day that is sixty (60) days after the last home game (regular or post-season) of such season and the rental shall be prorated for such extension period based on the rental then in effect for such final Lease Year. Section 4.3. Rent. (a) Lessee agrees to pay annual rental for each Lease Year during the base Lease Term on or before the first day of each such Lease Year, as follows: Lease Years 1 – 5 - $50,000.00 per Lease Year Lease Years 6 – 10 - $60,000.00 per Lease Year Lease Years 11 – 15 - $70,000.00 per Lease Year Lease Years 16 – 20 - $80,000.00 per Lease Year Lease Years 21 – 25 - $90,000.00 per Lease Year Lease Years 26 – 30 - $100,000.00 per Lease Year (b) Lessee shall timely pay to the City the Rentals to be paid by Lessee to the City under this Lease, without deduction or setoff (except as otherwise expressly provided in this Lease), at the City’s address provided for in this Lease or as otherwise specified by the City in writing. Notwithstanding the foregoing, if tax-exempt debt is issued to fund the City’s Contribution, the City may reduce the Rentals if necessary to ensure compliance with the federal income tax laws applicable to tax-exempt debt. Section 4.4. Permitted Uses. Throughout the Term, Lessee shall occupy and use the Leased Premises for the primary purposes of conducting regularly scheduled and post-season home games played by the Team (including radio and television broadcasting or other transmission of same) in accordance with the rules and regulations of the Sanctioning Association. In addition to the foregoing, the permitted uses shall Page 15 of 43 2nd Amended Restated Stadium Lease Draft include the conducting of meetings, trade shows, exhibitions, concerts, public entertainment events, other baseball games and sporting events, and other similar traditional baseball functions that will encourage economic development and tourism in the City of Corpus Christi; and for purposes related and incidental thereto including, without limitation, operation of restaurants and concession facilities in and adjacent to the Baseball Stadium (during games and events and at other times), sale of food and beverages (alcoholic and non-alcoholic), conducting tours, storage, and office uses), and for any other lawful purpose that is not a prohibited use described in Section 4.7. Section 4.5. Compliance with Laws. (a) Lessee shall, throughout the Term, and at no expense to the City, promptly comply or cause compliance in all material respects with all laws, ordinances, orders, rules, regulations and requirements of duly constituted Governmental Authorities, which may be applicable from time to time to its use of the Leased Premises and its operation, repair and alteration thereof. (b) Lessee shall not, however, be required to comply or cause compliance with such laws, ordinances, orders, rules, regulations or requirements, if Lessee is, after prior written notice to the City, contesting the same or the validity thereof in good faith, at Lessee's expense by appropriate proceedings; and provided further, such noncompliance will not have a material adverse effect on the Leased Premises or Lessee or the performance of its obligations hereunder. Such contest may be made by Lessee in the name of the City or Lessee, or both, as Lessee shall reasonably determine, and the City shall, at Lessee's expense, cooperate with Lessee in any such contest to such extent as Lessee may reasonably request; provided, however, that Lessee may not contest in the name of the City any law, ordinance, rule, regulation, order or requirement of the City, and the City has no obligation to cooperate in any such contest against the City. The City shall not, however, be subject to any liability for the payment of any costs or expenses in connection with any such proceedings brought by Lessee, and Lessee covenants to pay, and to indemnify and save the City harmless from, any such costs or expenses, including, but not limited to, court costs and attorneys' fees. Section 4.6. Obligations of Lessee Unconditional. The obligations of Lessee under this Agreement including, but not limited to, the obligations to pay the Rentals, to maintain the Leased Premises and to pay the premiums or charges necessary to maintain or cause to be maintained the insurance required herein, and to provide the indemnity required herein shall be absolute and unconditional and shall not be subject to any defense (other than payment) or any right of set-off, counterclaim, abatement or otherwise except as expressly permitted by this Lease. Section 4.7 Prohibited Uses. (a) Lessee shall not allow the Leased Premises to be used for any of the following purposes: public nuisance; any use violating law; use as a sexually oriented business as defined in the City Code; or use as an industrial site or waste disposal facility. (b) Lessee shall not knowingly use the Leased Premises for any use that would cause the bonds used to finance the Baseball Stadium to lose their tax-exempt status. The City shall be responsible to notify Lessee of any prohibited uses that could cause such a result. If any of the permitted uses expressly described in Section 4.4 above shall be or become prohibited uses under this Section 4.7(b), then Lessee may terminate this Lease and the City shall promptly pay to Lessee the Unamortized Portion of the Lessee’s Contribution (measured as of the date of termination). ARTICLE V BEGINNING CONDITION, ALTERATIONS AND IMPROVEMENTS Section 5.1. Beginning Condition. On the Commencement Date, the City shall deliver exclusive and vacant possession of the Leased Premises to Lessee with all Project Improvements Work being Page 16 of 43 2nd Amended Restated Stadium Lease Draft Substantially Complete and in good working order and condition and having been accepted in writing by Lessee (subject only to minor punch list items which can be completed by the City or the Project Contractor without interfering with Lessee’s operation of the Leased Premises). - COMPLETED Section 5.2. Alterations. Any subsequent alterations, additions, or construction of new improvements on or in the Leased Premises must be consistent with the permitted uses of the Leased Premises as set forth in Section 4.4 and must be consistent with the then appearance of the Leased Premises and the uses being made thereof; and must be approved in advance in writing by the City, such approval not to be unreasonably withheld; provided, however, that Lessee is not required to obtain the City’s prior approval for (a) non-structural remodeling or installation or removal of Removables or other trade fixtures and equipment; (b) temporary improvements or alterations to accommodate particular events; (c) alterations required to comply with any applicable law or any requirements of the Sanctioning Association; (d) alterations resulting from restorations or repairs of existing facilities; or (e) any nonstructural alterations costing less than $100,000, with respect to any single alteration, or $500,000 in any calendar year with respect to a series of alterations. For the purposes of this Section, routine maintenance, repairs, and capital improvements of any kind that do not exceed the sum of $100,000 do not require the prior consent or approval of the City. Notwithstanding the foregoing, Lessee shall have the right to construct additional facilities upon the Land so long as the same are consistent in exterior appearance with the architectural theme of the Baseball Stadium, Lessee provides the City reasonable evidence of Lessee’s ability to pay for the same, and so long as the same, when completed, will not have reduced the overall utility of the Baseball Stadium or weakened or impaired the structural integrity of the Baseball Stadium. For work requiring the City’s approval, Lessee shall submit the plans, specifications and construction drawings to the City with Lessee’s request for approval. Anything to the contrary herein notwithstanding, no such alterations, additions or improvements shall cause the facilities within the Leased Premises to cease to qualify as a “project” under Section 4A(i) of Article 5190.6, Texas Revised Civil Statutes. Section 5.3. Compliance with Regulatory Requirements. Lessee agrees that all additions and alterations on or to the Leased Premises constructed by it shall be constructed in accordance with all applicable ordinances and statutes of Governmental Authority as well as the codes of the City. Lessee shall, at its sole cost and expense, procure or cause to be procured all necessary building permits, other permits, licenses and other authorizations required for the lawful and proper addition to or alteration, use, occupation, operation, and management of the Leased Premises (the City agrees to cooperate with Lessee’s efforts with respect to obtaining such permits, licenses or other authorizations). Section 5.4. Ownership of Improvements. Provided and for so long as no Event of Default has occurred hereunder, title to and ownership of the Leased Premises during the Term of this Lease shall be and remain in the City, except for trade fixtures, furniture, equipment, furnishings and their personal property installed in or affixed to the Leased Premises by or on behalf of Lessee (collectively, the “Removables”), all of which shall remain Lessee’s sole property. At the expiration or other termination of the Lease, all alterations, additions, and improvements to the Leased Premises (except for the Removables) must remain upon and be surrendered with the Leased Premises. Notwithstanding any of the above, so long as the City consents to assume the obligations of Lessee under any concession agreements, any concession equipment (other than Removables) shall remain in the Leased Premises. Section 5.5. The City’s Right of Inspection. Prior to the City giving or withholding its consent to any proposed construction, alteration, addition or Capital Repair (as defined herein) to the Leased Premises requiring such consent as set forth in Sections 5.2 and 7.3 herein, the City may review Lessee's conceptual design drawings and construction drawings for such construction work, the reasonable, out- of-pocket costs paid to third parties therefore to be paid by Lessee. Upon completion of any new construction or alteration or addition to existing improvements for which the City's approval is needed under the terms of this Lease, Lessee shall obtain a written certification addressed to the City from a licensed Page 17 of 43 2nd Amended Restated Stadium Lease Draft architect or engineer reasonably acceptable to the City stating that the construction has been completed substantially in accordance with the construction drawings and that, to the best of each professional’s knowledge, the completed improvements are in compliance with all applicable ordinances, statutes, and the requirements of all Governmental Authority. Additionally, the City may, at its sole discretion, cost and expense, have the Leased Premises inspected by an inspector qualified to determine compliance with Major League Baseball facilities’ standards and regulations, in order to determine whether or not Lessee is maintaining the Leased Premises commensurate with Major League Baseball facilities’ standards and regulations and/or whether or not Lessee is maintaining the Leased Premises at a level commensurate with the Comparable Facilities, as required in Section 6.1.5 herein. ARTICLE VI THE OPERATOR’S RIGHTS AND OBLIGATIONS Section 6.1. Management. Lessee shall be the exclusive manager and operator of the Baseball Stadium and shall have the exclusive right to contract for its license or use during the Term in a manner that will promote and further the purposes for which the Baseball Stadium has been constructed. Lessee shall do all things and take all commercially reasonable actions necessary for the operation and maintenance of the Baseball Stadium as a baseball stadium and entertainment facility in accordance with this Lease and in a manner generally consistent with the operation and maintenance of the Comparable Facilities as of the Effective Date, subject to normal wear and tear. Without limiting the generality of the foregoing, Lessee is authorized to and shall: 6.1.1 charge and collect all operating revenue, parking use charges, concession revenue, and seat and suite use charges for the Baseball Stadium and leased Premises and, in connection therewith, use all commercially reasonable efforts to obtain all fees, rents and other amounts due from licensees, concessionaires and other users of the Baseball Stadium and Leased Premises; and shall cause notices to be served upon such licensees and other users to quit and surrender space occupied or used by them where desirable or necessary in the opinion of Lessee and shall ask for, demand, collect and give receipts for all amounts which at any time may be due from any licensees and other users of the Baseball Stadium and Leased Premises; 6.1.2 commence, defend and settle in good faith such legal actions and proceedings concerning the operation of the Baseball Stadium (except for City events) as are necessary or required in the opinion of Lessee and shall retain counsel in connection therewith; 6.1.3 employ, pay and supervise all personnel that Lessee determines to be necessary for the operation of the Baseball Stadium (such personnel, during the course of such employment, shall be employees of Lessee and shall not be employees of the City); determine all matters with regard to such personnel, including without limitation, compensation, bonuses, fringe benefits, hiring and replacement and shall prepare, on its own behalf and file when due, all forms, reports and returns required by law relating to the employment of such personnel; 6.1.4 purchase and maintain all materials, tools, machinery, equipment and supplies deemed necessary by Lessee for the operation of the Baseball Stadium; 6.1.5 maintain the Baseball Stadium in accordance with Comparable Facilities subject to normal wear and tear, and maintain and operate the Baseball Stadium in compliance with all requirements necessary for the conduct of all home games; Page 18 of 43 2nd Amended Restated Stadium Lease Draft 6.1.6 prepare, coordinate, implement, revise as necessary and administer a preventative maintenance plan and program for the Baseball Stadium, its machinery and equipment, and provide a maintenance log for each prior Lease Year; 6.1.7 from and after the Commencement Date, arrange for and provide all utility and other services for the Baseball Stadium and pay or cause to be paid when due all charges for water, sewer, gas, light, heat, telephone, electricity, and other utilities and services rendered to or used on or about the Baseball Stadium (the City and/or the Project Contractor shall be responsible for arranging and paying for all utility services necessary for the construction and Final Completion of the Project Improvements Work and for providing permanent utility services infrastructure and hook-ups for Lessee’s use); provided, however, that the City and Lessee shall cooperate in an effort to obtain the most favorable rates for electricity and other utility services and, in that regard, if the City is able to procure such utility services at more favorable rates than Lessee, then the City and Lessee shall in good faith negotiate and amendment to this Lease whereby the City will agree to provide such utility services and Lessee will agree to reimburse the City for all such charges on a pass through basis (and without mark-up by the City); 6.1.8 maintain or cause to be maintained all necessary licenses, permits and authorizations for the operation of the Baseball Stadium; 6.1.9 furnish to the City such reports and other information concerning the condition of the Baseball Stadium and operation thereof (excluding any financial operating results or other information deemed commercially sensitive by Lessee) as may be reasonably requested from time to time by the City, it being understood, however, that Lessee shall not be required to generate any special reports but rather just make available to City any reports already prepared by Lessee in the normal conduct of its business; 6.1.10 procure and negotiate contracts with concessionaire(s) for the operation of consumable and/or non-consumable concessions at the Baseball Stadium (unless Lessee shall self- operate such concessions); and 6.1.11 control the issuance of and issue all credentials for events at the Baseball Stadium. Section 6.2. Promotions and Marketing. Lessee’s obligation to operate the Baseball Stadium generally consistent with Comparable Facilities shall not apply to promotional, event, or marketing activities, and Lessee shall have the discretion to adopt and implement such promotional and marketing practices as Lessee deems appropriate for the operation of its business at the Leased Premises. ARTICLE VII ADDITIONAL COVENANTS OF LESSOR AND LESSEE Section 7.1. Maintenance, Operation and Capital Repair Work Expenses of the Leased Premises. Subject to Section 7.4 herein, Lessee shall, at its sole cost and expense, perform all Capital Repair Work (as defined herein), maintenance and routine repairs required to keep, maintain, and operate the Leased Premises, including the interior and exterior, structural and nonstructural portions of the improvements, in as good repair as exists on the Commencement Date and in compliance with all applicable laws, regulations, orders and other governmental requirements of Governmental Authority applicable to the Leased Premises from time to time, and generally consistent with the operation and maintenance practices of the Comparable Facilities, subject to ordinary wear and tear, uninsured catastrophes, Force Page 19 of 43 2nd Amended Restated Stadium Lease Draft Majeure events, acts of God and events of condemnation. “Capital Repair Work” includes all work performed and expenses incurred for routine maintenance of the facilities, for capital improvements, and to repair, restore, replace, enhance, or refurbish any equipment, facility, structure or other component of the Leased Premises. The City has no maintenance and repair obligations under this Lease and, subject to the City’s obligations as set forth in Section 7.4 below, the City has no obligation to pay any maintenance, repair, Capital Repair, capital or operating expenses of the Leased Premises. Section 7.2. Lessee’s obligation to pay for maintenance, Capital Repair Work, enhancements and upgrades of the Leased Premises. Lessee shall spend no less than Three Hundred Fifty Thousand Dollars ($350,000) annually on maintenance, Capital Repair Work, enhancements and upgrades to the Leased Premises, as required in Section 7.1 herein, beginning in the year 2013 and through the end of this amended Lease’s Term. Notwithstanding the preceding statement, Lessee shall spend an amount greater than $350,000 annually if necessary in order to maintain the Leased Premises commensurate with Major League Baseball facilities’ standards and regulations and/or at a level commensurate with the Comparable Facilities, whichever level is determined to be a higher standard by a qualified inspector, as referenced in Section 5.5 herein. Section 7.3. Lessee’s obligation to provide reports relating to maintenance, Capital Repair Work, enhancements and upgrades. In addition to Lessee’s requirements under Section 5.5 herein, Lessee agrees annually, on or before October 1, to provide the City (i) a written accounting of all maintenance, Capital Repair Work, enhancements and upgrades to the Leased Premises paid for and completed by Lessee in the previous Lease Year pursuant to Section 7.2 herein, for which Lessee requests reimbursement from City pursuant to Section 7.4 herein, as well as (ii) a proposed detailed capital improvement plan for City review and approval which shall consist of a schedule for and estimated budget for proposed maintenance, Capital Repair Work, enhancements and upgrades for the upcoming year. Such written accounting of all maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee in the previous Lease Year shall be subject to the written approval of the City, such approval not to be unreasonably withheld, conditioned or delayed. Lessee’s proposed schedule for and estimated budget of proposed maintenance, Capital Repair Work, enhancements and upgrades for the upcoming year also shall be subject to the written approval of the City, such approval not to be unreasonably withheld, conditioned or delayed. Section 7.4. City’s obligation to reimburse Lessee. Upon City’s written approval of Lessee’s written accounting of all maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee in the previous Lease Year pursuant to Section 7.2 herein, subject to appropriation by the Corpus Christi City Council, and subject to Lessee’s compliance with Approved Procurement Practices and all applicable statutory requirements, City shall reimburse Lessee for such approved expenditures in the amounts set forth in 7.4.1 and 7.4.2, which shall be paid to Lessee no later than thirty (30) days following the last game or event held at the Leased Premises of the year following completion of such approved enhancements and upgrades. 7.4.1. City’s reimbursement obligation for the 2019-2020 City fiscal year. Regarding the maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee in the 2019-2020 City fiscal year, City agrees to reimburse Lessee a 2 to 1 match of Lessee’s payment, subject to availability of Corporation funds, with City reimbursement not to exceed two million dollars, with actual reimbursement amount limited by the amount actually expended by Lessee during the fiscal year for enhancements and upgrades. Corporation funds are available and the funding for the 2019-2020 fiscal year was approved by the Corporation on December 9, 2019 and the Corpus Christi City Council on ________________, 2020. City and Lessee agree that, at a minimum City shall reimburse Lessee One Hundred Seventy Five Thousand Dollars ($175,000) so Page 20 of 43 2nd Amended Restated Stadium Lease Draft long as Lessee complies with Section 7.2 requiring the expenditure of at least $350,000. 7.4.2 City’s annual reimbursement obligation beginning the 2020-2021 City fiscal year. Regarding the maintenance, Capital Repair Work, enhancements and upgrades paid for and completed by Lessee for each year beginning the 2020-2021 City fiscal year, City agrees to reimburse Lessee a minimum amount of One Hundred Seventy Five Thousand Dollars ($175,000) annually so long as Lessee complies with Section 7.2 requiring expenditure of at least $350,000. Any request from Lessee for additional funding beyond the $175,000 provided in this Section will require approval of the Corpus Christi City Council. Section 7.5. Taxes and Other Charges. Lessee shall pay prior to delinquency, in addition to the payment of Rentals, each and every lawful cost, expense and obligation of every kind and nature, foreseen or unforeseen, by reason of Lessee's estate or interest in the Leased Premises or any portion thereof or by reason of or in any manner connected with or arising out of Lessee's possession, operation, maintenance, alteration, repair, rebuilding, use or occupancy of the Leased Premises, or any part thereof. Lessee shall pay and discharge, prior to the delinquency thereof, all lawful assessments, ad valorem taxes, sales taxes, business and occupation taxes, occupation license taxes, water charges, sewage disposal charges, or other utility charges imposed on the Leased Premises and Lessee's use and occupancy of the Leased Premises, and all other governmental taxes, impositions, and charges of every kind and nature, ordinary or extraordinary, general or special, foreseen or unforeseen, whether similar or dissimilar to any of the foregoing, and all applicable interest and penalties, if any, which at any time during the Term becomes due and payable by Lessee because of its rights or obligations under this Lease and which is lawfully levied, assessed or imposed on Lessee or its interest in the Leased Premises under or by virtue of any present or future law, statute, ordinance, regulation or other requirement of any Governmental Authority, whether federal, state, county, city, municipal, school or otherwise. Lessee, upon written notice to the City, may contest in good faith any such tax, imposition, charge or assessment levied by any Governmental Authority (other than water charges or sewage disposal charges), and in such event may permit such tax, imposition, charge or assessment (other than water charges or sewage disposal charges) to remain unsatisfied during the period of such contest and any appeal, provided, however, that prior to the commencement of such contest Lessee shall demonstrate to the City either (a) that Lessee will have sufficient funds to pay such assessment if the contest is unsuccessful (as determined to be acceptable in the sole discretion of the City) or (b) that Lessee has deposited into a separate escrow account funds equal to the contested amount, together with the anticipated interest and penalties, if any, that would be incurred in the event of an unfavorable disposition. Lessee also shall pay or cause to be paid all lawful charges for gas, water, sewer, electricity, light, heat, power, telephone, and other utilities and services used, rendered or supplied to, upon or in connection with the Leased Premises (Lessee to pay or cause to be paid all of such charges directly to the provider thereof except to the extent any of the same are provided by the City as contemplated by Section 6.1.8 above). Lessee shall furnish to the City promptly upon request, proof of the payment or timely contest of any such tax, assessment or other governmental or similar charge, or any utility charge which is payable by Lessee, or evidence of the deposit of such funds into a reserve account, all as set forth above. Notwithstanding the foregoing, in the event the Leased Premises is not exempt from property taxation due to any failure of the City, then the City shall be solely responsible for such tax. Furthermore, in the event a Targeted Tax is ever imposed by the City, then Lessee shall be entitled to a credit against all Rentals then due and thereafter becoming due so as to enable Lessee to recapture the amount of the Targeted Tax paid by Lessee; provided, that, in the event there are insufficient Rentals due and to become due hereunder to enable Lessee to recapture through offset against the Rentals the amount of Targeted Tax paid by Lessee, the City shall directly pay to Lessee the amount of such excess Targeted Tax within thirty (30) days following Lessee’s submittal to the City of the payment of the Targeted Tax and an invoice for the reimbursement therefore. The provisions of this paragraph shall expressly survive the expiration or sooner termination of this Lease. Page 21 of 43 2nd Amended Restated Stadium Lease Draft Section 7.6. Liens and Encumbrances. Lessee covenants and agrees that, except for this Lease, it will not create or suffer to be created by, through or under Lessee any lien, encumbrance or charge upon the Leased Premises. Lessee shall satisfy or cause to be discharged, or will make adequate provision to satisfy and discharge, within sixty (60) days after the same occurs, all such claims and demands for labor, materials, supplies or other items which, if not satisfied, might by law become a lien upon the Leased Premises or any part thereof. If any such lien is filed or asserted against Lessee or the Leased Premises by reason of work, labor, services or materials supplied or claimed to have been supplied on or to Lessee or the Leased Premises at the request or with the permission of Lessee or of anyone claiming under it, Lessee shall, within sixty (60) days after it receives notice of the filing thereof or the assertion thereof against the Leased Premises, cause the same to be discharged of record, or effectively prevent the enforcement or foreclosure thereof, by contest, payment, deposit, bond, order of court or otherwise. Section 7.7 Franchise Liens. Lessee may, at any time or from time to time, grant liens upon the Team and/or any and all ownership or franchise rights Lessee has in or with respect to the Team; provided, however, that to ensure the continued compliance with the Non-Relocation Agreement (and the other Project related documents to which Lessee or the Team is a party), by Lessee or the Team or any other person who acquires the franchise by transfer, foreclosure, or otherwise at any time during the term of the Lessee license agreement, any such liens shall (i) be made or granted in compliance with and subject to the requirements and obligations of Lessee pursuant to this Lease and the Non-Relocation Agreement and (ii) provide that any person who acquires the franchise pursuant to any foreclosure or other transaction under any such liens shall take the franchise strictly subject to and assume the requirements and burdens imposed on Lessee pursuant to this Lease and the Non-Relocation Agreement. Upon any such granting of such liens, Lessee shall obtain from each such lien holder a written acknowledgment and acceptance of the terms, provisions, and restrictions contained herein and shall provide an executed copy thereof to the City and shall state in the instruments creating and perfecting such lien that any transfer is subject to the terms herein. In the event involuntary liens or material encumbrances are placed on the franchise that, upon foreclosure, would result in a violation hereof, Lessee will use its good faith efforts to promptly remove such liens or material encumbrances after reasonable contest periods. Section 7.8. Surrender of Possession. Upon the termination of this Lease, Lessee shall surrender the Leased Premises (including all improvements thereon) to the City in a condition which would have been in compliance with the maintenance requirements of Section 7.1 of this Lease had the Lease not terminated, reasonable wear and tear and damage by casualty and condemnation excepted. Section 7.9. Operation. Lessee agrees to operate and maintain the Leased Premises throughout the Term in a condition necessary to conduct the permitted uses described in Section 4.4, consistent with the general quality of operations at Comparable Facilities. Except as provided herein, Lessee may not assign any rights, duties or obligations to operate and maintain the Leased Premises throughout the Term to any party, other than its Affiliates, without the prior written consent of the City. The City acknowledges that the foregoing does not prohibit Lessee from contracting with third parties to provide services such as concessions, security, janitorial and similar services. Section 7.10. Right of Lessee to Revenues. Except as provided in Section 7.16, Lessee shall be entitled to, and is hereby granted the exclusive right to, contract for, collect, receive and retain all gross income and revenues and other consideration of whatever kind or nature realized by, from or in connection with the Leased Premises, including, without limitation, all gross revenues, royalties, license fees, concession fees and income and receipts of any nature, including, without limitation, those arising from (a) all advertising rights, (b) all broadcast rights, (c) parking, (d) promotion of events at the Leased Premises, (e) the sale of food, beverages, merchandise, programs and other goods and wares of any nature whatsoever at the Leased Premises, (f) all naming rights, and (g) all telecommunications rights. Lessee shall have the right, without the prior consent of the City, to sell or grant rights to purchase future tickets for reserved Page 22 of 43 2nd Amended Restated Stadium Lease Draft seats, club seats and luxury suites, including personal seat licenses (collectively, “Seat Rights”). All Seat Rights shall be subject and subordinate to the provisions of this Lease and shall not survive the termination or expiration of this Lease. The Lessee shall have no responsibility or obligation to sell Seat Rights and the City shall not have any liability or responsibility to assure the sale of Seat Rights. Lessee shall be entitled to, and is hereby granted the exclusive right to, collect, receive and retain all gross income and revenues and other consideration of whatever kind or nature (but excluding any Targeted Taxes) realized by, from or in connection with the sale or other distribution of Seat Rights, tickets or passes (including general admission) for any seats in the Leased Premises. Section 7.11. Naming and Other Rights. Lessee shall have the full right to provide a name or names for the Baseball Stadium during the Term of this Lease; provided, however, that, except for city names which are incorporated into the brand name of any nationally or regionally offered product or service (such as, by way of example and not limitation, “Seattle’s Best” coffee, “Milwaukee’s Best” beer or “Boston Market” foods), Lessee shall display no reference to any county or to any city other than the City in any signage, advertising, and other identification monuments or visible media containing the name used by or identifying the Baseball Stadium facility on the Leased Premises. Lessee agrees to use a name for the Baseball Stadium that is appropriate for a City-owned facility. Within ten (10) days after the Lessee’s disclosure to the City of the name of the Baseball Stadium, the City shall have the right to disapprove and thus prohibit such name for the Baseball Stadium (including the name for the concourses or other part of the Baseball Stadium) if the City Council reasonably deems such name to be in bad taste or offensive to the City’s image or a potential source of embarrassment to the City. Any advertising, documents or media information prepared by or within the control of Lessee describing any event at the Baseball Stadium shall identify the City as the location of the Baseball Stadium. Without limiting the foregoing, Lessee shall have the exclusive right to contract with any person with respect to use and enjoyment of such name for the Baseball Stadium and the exclusive right to enter into agreements with others whereby such others may display names, logos, trademarks, advertisements, slogans, emblems, brand names, and the like in or about the Leased Premises. Lessee reserves the right to change the name of the Baseball Stadium from time to time. Lessee also retains exclusive rights of control over, and the right to grant to others, the rights to broadcasts to and from the Leased Premises, regardless of the medium used (e.g., television, radio, internet, satellite) and all revenues therefrom. Any agreement executed by Lessee that sells the right to name the Baseball Stadium shall provide that should the party to whom said right has been sold perform or be the subject of any Act of Bankruptcy, Lessee shall have the right to immediately terminate such agreement and have the right to seek a new agreement with respect to the naming rights for the Baseball Stadium. Any expenses incurred by Lessee in the marketing or sale of naming rights shall not be considered an operation or maintenance expense of the Baseball Stadium. Notwithstanding anything herein to the contrary, the naming rights shall be subject to and subordinate to this Lease. Section 7.12. Advertising Content. Lessee agrees that no advertising shall be allowed on the Leased Premises for sexually oriented businesses as defined in the City Code or for political candidates or issues. Section 7.13. Notification of Events of Default. Lessee covenants and agrees that it will promptly notify the City of the occurrence of an Event of Default specifying the details of such Event of Default and the action that Lessee proposes to take with respect thereto. Section 7.14. The City to Provide Scoreboard. The City shall provide and install at the Baseball Stadium, at its cost and expense and as part of the City’s Contribution, a scoreboard approved by Lessee and meeting the Minimum Stadium Requirements and the requirements of the Sanctioning Association and of at least the quality of scoreboards at Comparable Facilities. - COMPLETED Section 7.15. The City’s Right of Entry and Inspection. Upon reasonable prior notice to Lessee (and not less than 48 hours in non-emergency situations), the City shall have the unrestricted right to enter Page 23 of 43 2nd Amended Restated Stadium Lease Draft upon the Leased Premises, for the purpose of inspecting the same and verifying Lessee’s compliance with the terms and conditions of this Lease. Section 7.16. Use of Leased Premises. Lessee will allow local baseball teams, on terms acceptable to Lessee to use the Leased Premises. Lessee will also allow the City, from time to time (but not more often than 10 times per Lease Year or 5 times during any single baseball season), the use of the Leased Premises for the conduct of City sponsored programs free of charge except that the City shall be responsible for all costs of operating the Baseball Stadium for such City sponsored programs and for all damage caused thereby and all janitorial, security, traffic control, and other services needed as a consequence thereof. These dates shall be determined in advance through negotiation of Lessee and the City. It is agreed that baseball games of the Team will be given priority if there is a conflict in dates (in no event shall the City have the right to use the same on any day during which a baseball game of the Team is scheduled). Additionally, the City shall be entitled to use the meeting facilities in the Baseball Stadium on an as available basis and free of charge except that the City shall reimburse Lessee for any and all direct expenses associated with such use. The City and Lessee agree to use commercially reasonable efforts to coordinate the scheduling of non-sports events at the Baseball Stadium and the City’s Multi-Purpose Arena, both City tax supported facilities, to the maximum extent practicable. Notwithstanding the foregoing, the City shall be entitled to the free use of the Nights at the Cotton Club meeting room three times per year, as scheduling allows. In addition, the Lessee shall provide a suite at the Leased Premises free of charge for City’s exclusive use throughout the entire term of this Lease. Lessee will also provide a $500 food voucher for use in the City suite during one half of the home games each year. Section 7.17. Sales Taxes; Location of Ticket Office. The City and Lessee intend for all municipal sales taxes arising from ticket sales for taxable amusement services at the Baseball Stadium are to be allocated to the City, as specifically required by 34 Texas Administrative Code § § 3.298(a)(1)(C) and 3.374; provided, however, nothing herein shall be deemed to prohibit or restrict Lessee for effecting sales of tickets through offices or services which are not located in the City. Should Lessee do so, Lessee shall in good faith attempt to do so in a manner which permits the City to collect the sales taxes generated therefrom. In all events, all telephone solicitations and sales shall be made in a manner which permits the City to collect the sales taxes generated therefrom. Section 7.18. Obligation to Provide Professional Baseball Team. Lessee agrees that during the Term of this Lease that it will ensure that the Team continuously uses the Leased Premises for all of its home games (subject to temporary changes in “home” vs. “away” status as may be directed from time to time by the Sanctioning Association). The Team will initially be either a double -A or triple-A team (or the equivalent thereof sanctioned by the Sanctioning Association) which is affiliated with a Major League Baseball team. All home games of the Team during the Term shall be played at the Leased Premises (subject to temporary changes in “home” vs. “away” status as may be directed from time to time by the Sanctioning Association). If Lessee shall lose or relinquish its baseball franchise, league affiliation, or player development contract, the Lessee shall continue to be obligated to field a team sanctioned by a Sanctioning Association which is affiliated with Major League Baseball at the Leased Premises. Failure to provide said Team will be considered as a Lessee Default under Section 11.3. Section 7.19. Concession Improvements; Access. Lessee shall cause the Concession Improvements to be constructed at Lessee’s sole cost and expense and as part of Lessee’s Contribution. Concession Improvements shall be of a quality generally consistent with concession improvements at Comparable Facilities. The City agrees that Lessee and its agents, contractors, sublessees, licensees, and concessionaires shall, subject the requirements of the City’s insurers, have the right of access, for themselves and their authorized representatives, to the Leased Premises, without charges or fees or the commencement of Rentals hereunder, and at normal construction hours during the construction period, Page 24 of 43 2nd Amended Restated Stadium Lease Draft for the purposes of determining compliance with this Lease, construction and installation of any Concession Improvements, construction and installation of any interior tenant finish work and other normal and customary construction related business, and equipping locker room and related facilities for Lessee. Lessee agrees not to hinder or interfere with the Project Improvement Work or the activities of the City’s contractors. Section 7.20. Security and Traffic Control. Lessee shall provide such on-site traffic control and security as is reasonable necessary to direct traffic to and from events at the Baseball Stadium. Subject to Lessee's payment of the City’s customary charges for similar activities, the City will provide such off-site traffic control and security as is reasonably necessary to direct traffic to and from events at the Baseball Stadium at a level of service comparable to that provided to other venues within the City. The Parties shall cooperate in good faith to develop a traffic control management plan to facilitate the ingress and egress of traffic to and from events at the Baseball Stadium; provided, however, that the Parties are under no obligation under the preceding clause to incur any costs in excess of costs otherwise required by this Lease. Section 7.21. Records. For a period of three (3) years after the end of the Lease Year to which they pertain, Lessee shall keep and maintain in the City complete and accurate attendance records for the Baseball Stadium. The City (including accountants and attorneys designated by the City) shall be entitled to inspect such records during the Term of this Lease and thee (3) years thereafter at Lessee’s office, at all reasonable times upon not less than forty-eight (48) hours’ notice. Section 7.22. City Tickets to Events. Lessee agrees that the City shall be provided with 12 tickets and customary parking passes to events held at the Baseball Stadium, the location of such tickets are to be at a mutually agreeable place within the highest priced general admission seating in the stadium. The use of such tickets shall be administered by the City’s Convention and Visitors Bureau and shall be provided without cost. Section 7.23. Hurricane Preparedness. If the Corpus Christi area is threatened by a hurricane or some other emergency situation, Lessee shall comply with all lawful orders of the City Manager under the City’s hurricane preparedness plan. Section 7.24. Sanitary Sewer. Provided the systems incorporated into the Project Improvements permit it to do so, Lessee shall operate its sanitary sewer facilities in accordance with the City Code of Ordinances, Section 13-201 and City Code of Ordinances, Chapter 55, Article XI, Commercial and Industrial Waste Disposal and Pretreatment, as the same may be amended. Section 7.25. Parking Area Sublease. The City covenants and agrees that it will enter into the Parking Area Sublease covering the Parking Area in form and substance acceptable to Lessee and will cause the Parking Area improvements described in the Parking Area Sublease to be complete and available for Lessee’s use on or before the Target Substantial Completion Date. ARTICLE VIII INSURANCE AND CONDEMNATION Section 8.1. Lessee's Insurance. Unless otherwise expressly provided below, commencing on the Commencement Date or any earlier occupation of the Leased premises by Lessee or its contractors as provided herein, Lessee covenants that it shall maintain in effect at all times during the full Term of this Lease, insurance coverages with limits not less than those set forth below with insurers licensed to do business in the State of Texas and acceptable to the City and under forms of policies satisfactory to the City. Lessee shall maintain such insurance coverages at its sole cost and expense. The City shall be Page 25 of 43 2nd Amended Restated Stadium Lease Draft under no obligation to maintain any such insurance coverage should Lessee be found to be in default under this Article VIII. None of the requirements contained herein as to types, limits or the City's approval of insurance coverage to be maintained by Lessee are intended to and none shall in any manner limit, qualify or quantify the liabilities and obligations assumed by Lessee under this Lease or otherwise provided by law. Section 8.2. Workers' Compensation Insurance. Lessee shall provide Workers’ Compensation insurance in the limits required by State law. Section 8.3. Employers’ Liability Insurance. Lessee shall provide Employers’ Liability insurance in minimum coverage amounts of $500,000. This policy shall include a waiver of subrogation in favor of the City. Section 8.4. Commercial General Liability: Bodily Injury/Property Damage. Lessee shall provide Commercial General Liability: Bodily Injury/Property Damage insurance coverage in the amount of $1,000,000 for each occurrence or equivalent; subject to a $2,000,000 aggregate. Such commercial general liability policy shall be on an occurrence form reasonably acceptable to the City, endorsed to include the City as an additional insured, contain cross-liability and severability of interest endorsements, state that this insurance is primary insurance as regards any other insurance carried by the City, and shall include the following coverages: (a) Premises/Operations; (b) Independent Contractors; (c) Broad Form Contractual Liability specifically in support of, but not limited to, the Indemnification section of this Lease; and (d) Personal Injury Liability with the employee and contractual exclusions removed. Section 8.5 Builder’s Risk. Lessee shall provide Builder’s Risk Insurance covering all insurable risks with respect to its build out obligations with limits reasonably acceptable to the City (with such limits to in no event exceed the replacement value of all insurable improvements comprising the Minimum Lessee Improvement Requirements). Section 8.6. Comprehensive Automobile Liability. Lessee shall provide Comprehensive Automobile Liability insurance for bodily injury and property damage in the amount of $1,000,000 combined single limit of liability. This policy shall be on a standard form written to cover all owned, hired and non-owned automobiles. Section 8.7. Umbrella Excess Liability Insurance. Lessee shall provide Umbrella Excess Liability Insurance; Bodily Injury/Property Damage (Occurrence Basis) in the amount of $10,000,000 per occurrence and aggregate. This policy shall be written on a following form umbrella excess basis above for the coverages described in Sections 8.3, 8.4, 8.5, 8.6 and 8.7 above and shall be endorsed to include the City as additional insured (to the extent such additional insured designation is commercially available for such umbrella excess liability coverage). Section 8.8. The City's Property. The City shall, at its expense, procure and keep in force, at all times during the term of this Lease with an insurer or insurers licensed to do business in the State a hazard and casualty insurance policy on the Leased Premises insuring it against loss and damage by fire, collapse, aircraft and all other perils which may be insured against under multi-peril policies available on commercially reasonable terms. Such policy shall be in an amount of not less than one hundred percent (100%) of the insurable replacement cost of the Leased Premises and all improvements therein (excluding, however, all of Lessee’s personal property). Section 8.9. Evidence of Insurance. Evidence of the insurance coverage required under this Article VIII, represented by Certificates of Insurance issued by the insurance carrier, must be furnished to the requesting party prior to the commencement of the Term of this Lease. Certificates of Insurance shall specify the Page 26 of 43 2nd Amended Restated Stadium Lease Draft additional insured status required above as well as the waivers of subrogation. Such Certificates of Insurance shall state that the parties will be notified in writing thirty (30) days prior to cancellation, material change or non-renewal of insurance. Each party shall provide to the other a certified copy of any and all applicable insurance policies upon request. Section 8.10. Insurance Requirements for Lessee's Contractors and Subcontractors. (a) General Requirements. Subject to the City's right to waive such requirements for a contractor or subcontractor at the City's sole discretion, insurance similar to that required of Lessee with limits reasonably acceptable to the City shall be provided by or on behalf of all contractors and their subcontractors to cover their operations performed for Lessee. The Commercial General Liability policy outlined in Section 8.4 will be extended to include Completed Operations coverage for any contractor doing construction work on the Leased Premises. Lessee shall consult with the City with respect to such matters to determine if the City desires to waive such requirements for a contractor or subcontractor. Lessee shall maintain Certificates of Insurance from all contractors and their subcontractors enumerating, among other things, the waivers in favor of, and insured status of, the City as required herein, and Lessee shall provide to the City a copy of each Certificate of Insurance from each contractor and subcontractor if requested by the City. (b) Subcontractors. The term “subcontractor(s)” for the purposes of this Lease shall include subcontractors, consultants, or sub-operators of any tier. Section 8.11. Release and Waiver. TO THE EXTENT PERMITTED BY LAW, AND WITHOUT AFFECTING THE INSURANCE COVERAGE REQUIRED TO BE MAINTAINED HEREUNDER, THE LESSOR AND LESSEE EACH WAIVE ALL RIGHTS OF RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION AGAINST THE OTHER FOR ANY (A) DAMAGES FOR INJURY OR DEATH OF PERSONS, (B) DAMAGE TO PROPERTY, OR (C) CLAIMS ARISING BY REASON OF ANY OF THE FOREGOING, TO THE EXTENT THAT SUCH DAMAGES AND/OR CLAIMS (i) ARE COVERED (AND ONLY TO THE EXTENT OF SUCH COVERAGE WITHOUT REGARD TO DEDUCTIBLES) BY INSURANCE ACTUALLY CARRIED BY THE PARTY HOLDING OR ASSERTING SUCH RIGHT OF RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION OR (ii) WOULD BE INSURED AGAINST UNDER THE TERMS OF ANY INSURANCE REQUIRED TO BE CARRIED UNDER THIS LEASE BY THE PARTY HOLDING OR ASSERTING SUCH RIGHT OF RECOVERY, CLAIM, ACTION OR CAUSE OF ACTION. THIS PROVISION IS INTENDED TO (i) RESTRICT EACH PARTY (IF AND TO THE EXTENT PERMITTED BY LAW) TO RECOVERY AGAINST INSURANCE CARRIERS TO THE EXTENT OF SUCH COVERAGE AND TO WAIVE (TO THE EXTENT OF SUCH COVERAGE), FOR THE BENEFIT OF EACH PARTY, RIGHTS AND/OR CLAIMS WHICH MIGHT GIVE RISE TO A RIGHT OF SUBROGATION IN ANY INSURANCE CARRIER AND (ii) GIVE EACH PARTY THE BENEFIT OF THE FOREGOING NOTWITHSTANDING ANY FAILURE BY THE OTHER PARTY TO MAINTAIN THE INSURANCE REQUIRED UNDER THIS LEASE. THE PROVISIONS OF THIS ARTICLE 8.11 ARE NOT INTENDED TO LIMIT THE CLAIMS OF THE LESSOR OR LESSEE TO THE FACE AMOUNT OR COVERAGE OF THE INSURANCE POLICIES HEREIN PROVIDED FOR OR TO EVIDENCE THE WAIVER BY EITHER PARTY OF ANY CLAIM FOR DAMAGES IN EXCESS OF THE FACE AMOUNT OR COVERAGE OF ANY OF SUCH INSURANCE POLICIES. NEITHER THE ISSUANCE OF ANY INSURANCE POLICY REQUIRED UNDER, OR THE MINIMUM LIMITS SPECIFIED IN, ARTICLE VIII WITH RESPECT TO LESSEE'S OR LESSOR'S INSURANCE COVERAGE SHALL BE DEEMED TO LIMIT OR RESTRICT IN ANY WAY LESSEE'S OR LESSOR'S LIABILITY ARISING UNDER OR OUT OF THIS LEASE. Lessee shall cause each of its contractors entering upon the Leased Premises for the purpose of conducting Page 27 of 43 2nd Amended Restated Stadium Lease Draft work thereon or therein to similarly waive its rights of recovery and subrogation against the City. Section 8.12. Insurers and Policies. Each insurance policy required by Article VII shall be issued by an insurer (or insurers) which is financially responsible, of recognized standing and rating acceptable to the City (but not exceeding the requirements the City imposes on contractors working on City property) and authorized to issue such policy of insurance in the State of Texas; (b) shall be in such form and with such provisions as are reasonably acceptable to the City and Lessee for the type of insurance involved; and (c) shall prohibit cancellation or substantial reduction of coverage by the insurer without at least thirty (30) days prior written notice to the parties. Evidence of these coverages represented by certificates of insurance issued by the insurance carrier must be furnished prior to commencement of the Term and must be kept current throughout the Term. None of the requirements contained herein as to types, limits or approval of insurance coverage are intended to and shall not in any manner limit, qualify, or quantify the liabilities and obligations assumed by the parties under this Lease or otherwise provided by law. ARTICLE IX INDEMNIFICATION Section 9.1. Indemnification. (a) Lessee shall, except as provided in the following paragraph of this Section 8.1(a) defend, protect, indemnify and hold the City and its officers, directors, employees, and agents harmless from and against any and all liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses), arising from or in connection with any injury to or death of a Person or any damage to property resulting from, arising out of or in connection with (i) the use or occupancy of the Leased Premises on or after the Commencement Date or (ii) the negligence or willful act of Lessee or Lessee's contractors, employees, officers, directors, agents or invitees. Notwithstanding the provisions of the preceding paragraph, Lessee shall not be liable for any liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses) arising from or in connection with: (1) Any injury to or death of a person or any damage to property (including loss of use) to the extent of the negligence or willful act of the City, its employees, officers, directors, contractors, agents or invitees; (2) The City's violation of any provisions of this Lease or any applicable Governmental Authority or deed restriction or insurance policy, now or hereafter in effect and applicable to the City; (3) The existence of any Hazardous Materials in, on or under the Leased Premises prior to the Commencement Date; or (4) Any environmental event caused by the City or any of its employees, officers, directors, contractors, agents or invitees. (b) To the maximum extent permitted by State law, the City shall, except as provided in the following paragraph of this Section 9.1(b), defend, protect, indemnify and hold Lessee and its officers, directors, employees, and agents harmless from and against any and all liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses), arising from or in connection with any injury to or death of a person or any damage to property resulting from, arising out of or in connection with (i) the use or occupancy of the Leased Premises prior to the Commencement Date, except to the extent any such liability, damage suit, claim or judgment arises from the use or occupancy of the Leased Premises by Lessee for constructing and installing any Concession Improvements or any other Lessee improvements as required under this Lease, (ii) the use or occupancy of the Leased Premises for City events subsequent to the Commencement Date as contemplated by Page 28 of 43 2nd Amended Restated Stadium Lease Draft Section 7.16 hereof, or (iii) the negligence or willful act of the City or the City's contractors, employees, officers, directors, agents or invitees. Notwithstanding the provisions of the preceding paragraph, the City shall not be liable for any liabilities, damages, suits, claims and judgments of any nature (including, without limitation, reasonable attorneys' fees and expenses) arising from or in connection with: (1) Any injury to or death of a person or any damage to property (including loss of use) to the extent of the negligence or willful act of Lessee, its employees, officers, directors, contractors, agents or invitees; (2) Lessee's violation of any provisions of this Lease or any applicable Governmental Rules or deed restriction or insurance policy, now or hereafter in effect and applicable to Lessee; (3) Any Hazardous Materials that are introduced to the Leased Premises after the Commencement Date by Lessee, or any of its employees, officers, directors, contractors, or agents; or (4) Any environmental event caused by Lessee or any of its employees, officers, directors, contractors, or agents. The provisions of this Section 9.1 are solely for the benefit of the City and Lessee and are not intended to create or grant any rights, contractual or otherwise, to any other person. Section 9.2. Indemnification Procedures. In case any claim shall be brought or, to the knowledge of any indemnitee, threatened against any indemnitee in respect of which indemnity may be sought, such indemnitee shall promptly notify the other in writing; provided, however, that any failure so to notify shall not relieve the indemnitor of its obligations under Section 9.1 unless (i) such failure so to notify precludes investigation and defense of such claims as a matter of law, and (ii) the indemnitor does not otherwise have knowledge, either actual or constructive, of such claim. The indemnitor shall have the right (and obligation, subject to the terms below) to assume the investigation and defense of all claims, including the employment of counsel, reasonably acceptable to the indemnitee, and the payment of all expenses. Each indemnitee shall have the right to employ separate counsel in any such action and participate in the investigation and defense thereof, but the fees and expenses of such counsel shall be paid by such indemnitee unless (i) the employment of such counsel has been specifically authorized by indemnitor, in writing, (ii) indemnitor has failed after receipt of notice of such claim to assume the defense and to employ counsel, or (iii) the named parties to any such action (including any impleaded parties) include both parties, and the indemnitee, after consultation with its counsel, reasonably believes that there may be one or more legal defenses available to it which are different from or additional to those available to the indemnitor (in which case, if such indemnitee notifies the indemnitor in writing that it elects to employ separate counsel at indemnitee’s expense, indemnitor shall not have the right to assume the defense of the action on behalf of such indemnitee; provide, however, that indemnitor shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegation or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the indemnitee, which firm shall be designated in writing by the indemnitees). Each indemnitee shall cooperate with the indemnitor in the defense of any action or claim. The indemnitor shall not be liable for any settlement of any action or claim without its consent, but if any such action or claim is settled with the consent of the indemnitor or there be final judgment or agreement for the plaintiff in any such action or with respect to any such claim, the indemnitor shall indemnify and hold harmless the indemnitees from and against any damages by reason of such settlement or judgment. Section 9.3. Survival Right to Enforce. The provisions of this Article IX shall survive the termination of this Lease. In the event of failure by an indemnitor to observe the covenants, conditions and agreements contained in this Article IX, any indemnitee may take any action at law or in equity to collect amounts then Page 29 of 43 2nd Amended Restated Stadium Lease Draft due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of the indemnitor under this Article IX. Except as otherwise provided in Article X below, the obligations of the parties under this Article IX shall not be affected by any assignment or other transfer of its rights, titles or interests under this Lease and will continue to inure to the benefit of the indemnitees after any such transfer. ARTICLE X ASSIGNMENTS; LEASEHOLD MORTGAGES Section 10.1. Assignment and Subleasing. (a) Except as provided below, Lessee shall not assign or sublet its interest in this Lease or any of its rights or obligations hereunder without the prior written consent of the City, which consent may be granted or withheld if in the City's sole judgment such assignment or subletting might materially and adversely affect the financial condition or operations of the Baseball Stadium. (b) Notwithstanding the foregoing, without the City’s consent Lessee shall have the right upon thirty (30) days prior written notice to the City to assign its interest in this Lease (i) to any Affiliate of Lessee, or (ii) in connection with a merger or consolidation of Lessee with another entity so long as, following such transaction, the successor entity’s financial creditworthiness is equal to or greater than that of Lessee as of the Commencement Date. (c) Notwithstanding the foregoing, without the City’s consent, Lessee shall have the right upon thirty (30) days prior written notice to the City to assign its interest in this Lease in connection with a sale of the Team or a sale by Lessee of all or substantially all of its assets, in a single transaction or a series of transactions, and where such purchaser’s net worth (determined in accordance with generally accepted accounting principles) is, following such purchase, equal to or greater than that of the Lessee as of the Commencement Date and where such purchaser’s acquisition of the Team (or of all or substantially all of Lessee’s assets) has been approved by the Sanctioning Association. (d) Upon any assignment or transfer as described in paragraphs (b) or (c) above, the assignor shall be released from liability under this Lease (other than any liabilities arising or accruing prior to the date of assignment). Section 10.2. Notice of Intent. If Lessee shall, at any time during the Term, desire to assign this Lease or sublet all or part of the Leased Premises to a party (other than as permitted without the City’s consent under Section 10.1 above), Lessee shall give notice thereof to the City, which notice shall be accompanied by: (a) a conformed or photo static copy of the proposed assignment or sublease; (b) a statement setting forth, in reasonable detail, the identity of the proposed assignee or sublessee and the nature of its business; (c) current financial information with respect to the proposed assignee or sublessee, including its most recent financial statement (which may take into account the effects of the transfer); (d) banking and business references of the proposed assignee or sublessee; and (e) evidence satisfactory to the City that the proposed assignee or sublessee has been approved by a Sanctioning Association to own and operate a minor league baseball team and have its home games played at the Baseball Stadium. Section 10.3. Conditions Upon the City's Consent to Assignment. In the event that Lessee complies with all of the provisions of Section 10.2 and provided no Event of Default then exists, the City's consent to a proposed assignment shall not be unreasonably withheld or delayed, provided and upon condition that: (a) The proposed assignee or sublessee is a reputable person or entity of good standing in the business community and with financial worth (after giving effect to the transfer) not less than that of Lessee as of the date hereof, and the City has been furnished with reasonable proof thereof; (b) The proposed assignment shall be in a form reasonably satisfactory to the City and shall comply with the Page 30 of 43 2nd Amended Restated Stadium Lease Draft provisions of this Lease; and (c) Lessee shall reimburse the City on demand for any costs and overhead that may be incurred and substantiated by the City in connection with said assignment or sublease, including the costs of making investigations as to the acceptability of the proposed transferee and reasonable legal costs incurred in connection with the granting or withholding of any requested consent. If the foregoing conditions to an assignment are satisfied and the assignment is made, then upon such assignment the named Lessee herein shall be released herefrom with respect to obligations, covenants, and agreements to be observed and performed by the Lessee under this Lease after such date. Section 10.4. Subleases and Concession Arrangements. Notwithstanding the foregoing, Lessee shall have the right to enter into such subleases of portions of the Leased Premises and concession arrangements as Lessee may desire, all without consent from the City so long as each such sublease or concession arrangement provides that it is expressly subject and subordinate to this Lease. Section 10.5. Leasehold Mortgages. Lessee shall have no right to encumber by mortgage, deed of trust, security agreement or other instrument in the nature thereof (collectively, a “Mortgage”) or otherwise to encumber or affect in any way the titles, interests, or estates of the City in or to the Land or the Leased Premises, but Lessee may encumber Lessee's right to use and occupy the Leased Premises, the leasehold estate created hereby, any right, title and interest in and to any and all improvements constructed on the Leased Premises, or Lessee’s receivables, accounts, or revenue streams from, and equipment and fixtures in, the Leased premises, all without the need for obtaining the City’s consent. ARTICLE XI DEFAULT Section 11.1. City Default. The occurrence of any of the following shall be an “Event of Default” by the City or a “City Default”: (a) The failure of the City to pay any of its monetary obligations under this Lease when due and payable under this Lease if such failure continues for thirty (30) days after Lessee gives notice to the City that such amount was not paid when due; (b) Abandonment of the Project by the City or any termination, in whole or in part, of any of the Project Construction Contract or any of the work thereunder by the City without the consent of Lessee unless pursuant to a right of termination based upon the existence of an event of default under such Project Construction Contract; (c) Any suspension of the Project Improvements Work by the City for longer than sixty (60) consecutive days or one hundred twenty (120) days in any three hundred sixty-five (365) day period for any reason other than Force Majeure; (d) The failure of the City to substantially perform or substantially observe any of the obligations, covenants or agreements to be performed or observed by City under this Lease within thirty (30) days after notice from Lessee of such failure; provided, however, that if such performance or observance cannot reasonably be accomplished within such thirty (30) day period, then no Event of Default by the City shall occur unless the City fails to commence such performance or observance within such thirty (30) day period and fails to diligently prosecute such performance or observance to conclusion thereafter; provided further, however, that if such performance or observance has not been accomplished within one hundred twenty (120) days after notice from the Lessee to the City of such failure (notwithstanding the City’s diligent prosecution of its curative efforts), then such failure shall constitute an Event of Default by the City hereunder; (e) the occurrence of an event of default, however denominated, by the City under the Parking Sublease; or (f) The occurrence of an Act of Bankruptcy with respect to the City. Section 11.2. Lessee’s Remedies. If a City Default shall have occurred and be continuing, Lessee may, at its sole discretion, have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, other than any notice expressly provided in this Lease: (a) Lessee may terminate this Lease, as provided in Section 11.5 (except that the notice requirements of Section 11.5 shall not be required with respect to the City Default specified in Section 11.3(c) above) and the City Page 31 of 43 2nd Amended Restated Stadium Lease Draft shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution; (b) In the case of a City Default described in either of Section 11.1(b) or (c), Lessee may (but shall not be obligated) enter the Land and direct completion of the Project Improvements Work and the City agrees to provide to Lessee the unutilized proceeds from the debt incurred by the Corporation and made available to the City under the terms of the Corporation Project Agreement to pay the costs and expenses incurred by Lessee in completing the Project Improvements Work; and (c) Lessee may exercise any and all other remedies available to Lessee at law or in equity, but subject to any limitations thereon set forth in this Lease. Section 11.3 Lessee Default. The occurrence of the following shall be an “Event of Default” by Lessee or a “Lessee Default”: (a) The failure of Lessee to pay any of its monetary obligations to the City under this Lease when due and payable if such failure continues for thirty (30) days after the City gives notice to Lessee that such amount was not paid when due; (b) The failure of Lessee to substantially perform or substantially observe any of the obligations, covenants or agreements to be performed or observed by Lessee under this Lease within thirty (30) days after notice from the City of such failure; provided, however, that if such performance or observance cannot reasonably be accomplished within such thirty (30) day period, then no Event of Default by Lessee shall occur unless Lessee fails to commence such performance or observance within such thirty (30) day period and fails to diligently prosecute such performance or observance to conclusion thereafter; provided further, however, that if such performance or observance has not been accomplished within one hundred twenty (120) days after notice from the City to Lessee of such failure (notwithstanding Lessee’s diligent prosecution of its curative efforts), then such failure shall constitute an Event of Default by Lessee hereunder; (c) the occurrence of an event of default, however denominated, by Lessee under the Parking Sublease; (d) the occurrence of an Act of Bankruptcy with respect to Lessee; (e) Abandonment of Leased Premises by Lessee; (f) failure to maintain location in the City of the Team owned by Lessee and located in the City, as required in Section 2.2(i), Section 4.4, and Section 7.18 herein; (g) failure to maintain approval by a Sanctioning Association of the Team owned by Lessee and located in the City, as required in Section 2.2(i) and Section 7.18 herein; or (h) failure to maintain the Leased Premises commensurate with Major League Baseball facilities’ standards and regulations and/or at a level commensurate with the Comparable Facilities, whichever level is determined to be a higher standard by a qualified inspector, as referenced in Section 5.5 herein. Section 11.4. The City’s Remedies. If any Lessee Default shall have occurred and be continuing, the City may, at its sole discretion, have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, other than any notice expressly provided in this Lease: (a) The City may terminate this Lease as provided in Section 11.5 (except that the notice requirements of Section 11.5 shall not be required with respect to the Lessee Default specified in Section 11.3(c) above); (b) Seek another professional baseball team under the governance of a Sanctioning Association to conduct its regularly scheduled home games at the Baseball Stadium; (c) the City may, in its own name and for its own account, without impairing the ability of the City to pursue any other remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute, institute such action against Lessee as may appear necessary or desirable to collect such Rentals and any other amounts then due under this Lease, or to enforce performance and observance of such covenant, condition or obligation of Lessee hereunder, or to recover damages for Lessee's non-payment, non-performance or non-observance of the same; (d) the City may exclude Lessee from possession of the Leased Premises and reenter the same and take whatever action at law or in equity as may appear necessary or desirable to collect the Rentals and any other amounts then due, to enforce performance and observance of any covenant, condition or obligation of Lessee hereunder, or to recover damages for Lessee's non-payment, nonperformance or non-observance of the same; provided that the City shall be required to mitigate its damages to the extent required by law and Section 11.6(b) hereof; and (e) The City may exercise any and all other remedies available to the City at law or in equity, but subject to any limitations thereon set forth in this Lease. Notwithstanding the remedies provided in this Section 11.4, in the case of termination of Page 32 of 43 2nd Amended Restated Stadium Lease Draft the Lease due to Lessee Default specified in Section 11.3(e), (f), (g) or (h) above, Lessee (i) shall pay City all Rentals payable from the date of such Lessee Default through the end of the Lease Term, pursuant to Section 4.3 herein, and Lessee (ii) shall repay City the total of all reimbursements paid to Lessee by City pursuant to Section 7.4 herein from City’s Hotel Occupancy Tax fund during the five year period immediately preceding Lessee’s receipt of City’s initial notice to Lessee of default as provided for herein, and, as to any reimbursements paid to Lessee by City from any source other than City’s Hotel Occupancy Tax fund, Lessee shall pay City Two Hundred Fifty Thousand Dollars ($250,000). In addition to all remedies provided in this Section 11.4, should the City use funds from the City’s Hotel Occupancy Tax fund for reimbursement to Lessee pursuant to Section 7.4 herein, should any use of such Hotel Occupancy Tax funds by Lessee be for a use that is found to be illegal, City shall have no liability in connection thereof and Lessee shall reimburse City for all Hotel Occupancy Tax funds paid to Lessee for such illegal use. Further, should the City use funds from the City’s Hotel Occupancy Tax fund for reimbursement to Lessee pursuant to Section 7.4 herein, if City should determine that the area hotel revenues that were generated from sports events at the Leased Premises over any five year period following the payment to Lessee of the City’s Hotel Occupancy Tax funds for maintenance, Capital Repair Work, enhancements or upgrades to the Leased Premises (“Lessee-generated H.O.T.”) are not equal to or greater than the amount of the City’s Hotel Occupancy Tax funds that were spent in that previous five year period for such maintenance, Capital Repair Work, enhancements or upgrades to the Leased Premises (“H.O.T paid to Lessee”), then Lessee must reimburse City any deficiency between the H.O.T. paid to Lessee and the Lessee-generated H.O.T. so that City can reimburse their Hotel Occupancy Tax fund by that amount in compliance with Section 351.1076 of the Texas Tax Code. Section 11.5 Termination. Upon the occurrence of a City Default as described in Section 11.1 or a Lessee Default as described in Section 11.3, the non-defaulting Party, in addition to its other remedies at law or in equity, shall have the right to give to the defaulting Party notice (a “Final Notice”) of the non- defaulting Party’s intention to terminate this Lease, after the expiration of a period of thirty (30) days from the date such Final Notice is delivered unless the Event of Default is cured, and upon expiration of such thirty (30) day period, if the Event of Default is not cured, this Lease shall terminate without liability to the non-defaulting Party. If, however, within such thirty (30) day period the defaulting Party cures such Event of Default, then this Lease shall not terminate by reason of such Final Notice. Notwithstanding the foregoing, no Final Notice shall be required and the non-defaulting Party may declare this Lease immediately terminated if the Event of Default with respect to the defaulting Party is an Act of Bankruptcy. In the event of a termination of this Lease by either Party under this Section 11.5, then notwithstanding anything to the contrary set forth in this Lease all obligations of the Parties hereunder automatically shall terminate also, without liability to the other Party. Section 11.6. The Lessee to Remain Liable for Payments; Reletting. (a) Notwithstanding the exercise by the City of its remedies pursuant to Section 11.4 hereof (other than termination), Lessee shall continue to be liable for the payment of all Rentals payable under Section 4.3 hereof and other amounts, if any, payable under this Lease and Lessee shall make such payments at the same times and in the same manner as provided in this Lease. (b) In the event the City elects to exclude Lessee from possession of the Leased Premises and re-enter same, then the City shall use reasonable efforts to relet the Leased Premises for the maximum rental it may reasonably obtain, provided, however, that the City shall have no obligation to relet the Leased Premises to any person who will not use the Leased Premises for the purposes set forth in Section 4.5 hereof. Any such rentals received prior to the stated termination date of this Lease shall be applied first to the payment of expenses incurred by the City in connection with such reletting and second, to the Rentals due hereunder. Page 33 of 43 2nd Amended Restated Stadium Lease Draft Section 11.7. No Remedy Exclusive. No remedy herein conferred upon either party is intended to be exclusive of any other available remedy or remedies, and each such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default granted under this Lease shall impair any right or power or shall be construed to be a waiver thereof, and any such right or power may be exercised from time to time and as often as may be deemed expedient, and the exercise of any one right or remedy shall not impair the right to any or all other remedies under this Lease. NOTWITHSTANDING ANY CONTRARY PROVISIONS HEREOF IN NO EVENT SHALL LESSOR OR LESSEE BE LIABLE UNDER ANY PROVISION OF THIS LEASE FOR LOST PROFITS, INCLUDING LOST OR PROSPECTIVE PROFITS, OR FOR ANY OTHER SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE DAMAGES, IN CONTRACT, TORT OR OTHERWISE, WHETHER OR NOT CAUSED BY OR RESULTING FROM THE SOLE OR CONCURRENT NEGLIGENCE OF LESSOR OR LESSEE OR ANY OF THEIR AFFILIATES OR RELATED PARTIES. WITHOUT LIMITING THE FOREGOING, THIS LIMITATION OF LIABILITY SHALL APPLY TO CLAIMS OF LESSOR OR LESSEE ARISING OUT OF THIRD PARTY CLAIMS AGAINST LESSOR OR LESSEE FOR ANY OF THE FOREGOING. Section 11.8. No Additional Waiver Implied By One Waiver; Consents to Waiver. The waiver of either party of any breach by the other party of any covenant, condition or obligation under this Lease shall not operate as a waiver of any subsequent breach of the same or a waiver of any breach of any other covenant, condition or obligation under this Lease, nor shall any forbearance by the non-defaulting party not breaching to seek a remedy for any breach by the other party be a waiver by such non-defaulting party not breaching any of its rights and remedies with respect to such breach or any subsequent breach of the same or with respect to any other breach. Section 11.9. Delay not a Waiver. No delay or omission in the exercise of any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or any acquiescence therein, and every power or remedy given by this Lease may be exercised from time to time and as often as may be deemed expedient. Either party may waive any default which in its opinion has been remedied before the entry of final judgment or decree in any suit, action or proceeding instituted by it under the provisions of this Lease or before the completion of the enforcement of any other remedies under this Lease. No such waiver shall extend to or affect any other existing or subsequent default or impair any rights or remedies consequent thereon. Section 11.10 Declaratory or Injunctive Relief. In addition to the remedies set forth in this Article XI the Parties shall be entitled, in any circumstances they may deem appropriate, to seek injunctive relief prohibiting or mandating action by the other Party for any Event of Default of the other Party or declaratory relief with respect to any matter under this Lease. Section 11.11 Interest on Overdue Obligations. If any sum due hereunder is not paid on the due date thereof, the Party hereto owing such obligation to the other Party shall pay to the other Party interest thereon at the Default Rate, concurrently with the payment of the amount from the date such amount was due until paid. Any payment of interest at the Default Rate pursuant to this Lease shall not excuse or cure any default hereunder. Section 11.12 Attorney’s Fees. The defaulting Party shall pay all of the non-defaulting Party’s reasonable fees and expenses, including reasonable attorneys' fees, in enforcing any covenant to be observed by the defaulting Party or pursuing any remedy upon an Event of Default with respect to such Party. Page 34 of 43 2nd Amended Restated Stadium Lease Draft ARTICLE XII DAMAGE AND CONDEMNATION Section 12.1. Damage and Destruction. (a) If the Leased Premises are destroyed (in whole or in part) or are damaged by fire or other casualty, Lessee shall promptly give written notice thereof to the City. All applicable insurance proceeds shall be applied by the City either to repair, rebuild or restore the property damaged or, if the parties determine and mutually agree that it is impracticable to rebuild the Leased Premises, subject to the provisions of Section 12.1(b), such proceeds shall be transferred to the Corporation to effect the defeasance or prior redemption of obligations issued by the Corporation for the construction of the Baseball Stadium. Any remaining balance after payment for such repair, rebuilding or restoration, or transfer to the Corporation as herein described, shall be retained by the City. Lessee agrees to look solely to its insurance for the replacement and repair of the Removables and shall have all rights to all insurance with respect to, and shall be responsible for repair of, the concession areas to the extent, but no further, the same were equipped by Lessee or concessionaires contracting with Lessee. (b) The City will proceed promptly to repair, rebuild or restore the property damaged or destroyed to substantially the same condition as it existed prior to the event causing such damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by Lessee and the City and which will not impair productive capacity or the character of the Leased Premises. If such damage results in an Untenantable Condition, all Rentals shall abate during the period of repair and restoration. Notwithstanding the foregoing, in the event that (a) substantially all of the improvements shall be damaged or destroyed by casualty at any time during the final three (3) years of the Term or (b) any portion of the Leased Premises shall be damaged or destroyed by casualty at any time during the Term and the governmental rules then applicable to the Leased Premises do not permit the restoration of the Leased Premises so as to eliminate an Untenantable Condition, then Lessee may, at its option (exercised with reasonable promptness in the circumstances, but in all events within ninety (90) days after such damage or destruction), terminate this Lease by serving upon the City notice within such period setting forth Lessee’s election to terminate this Lease as a result of such damage or destruction as of the end of the calendar month in which such notice is delivered to the City. Upon the service of such notice and the making of such payments within the foregoing time period, the City shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution (measured as of the date of termination) and this Lease shall cease and terminate on the date specified in such notice with the same force and effect as if such date were the date originally fixed as the expiration date of this Lease and Lessee shall have no further obligations hereunder. Section 12.2. Condemnation. (a) In the event that title to the Leased Premises or the leasehold estate of Lessee in the Leased Premises created by this Lease or any part of either thereof shall be taken under the exercise of the power of eminent domain by any governmental body or by any person, firm or corporation acting under Governmental Authority, or shall be conveyed in lieu thereof, this Lease shall terminate and the City shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution. Any condemnation award attributable to the temporary use or temporary condemnation of the Lease Premises or the leasehold estate created hereby shall be paid to Lessee. If only a part of the Leased Premises or leasehold estate is taken the City will cause any proceeds received by it from any award made in such eminent domain proceedings with respect to the Leased Premises, to be applied towards the restoration of the Leased Premises to substantially the same condition as existed prior to the exercise of the said power of eminent domain. If the City does not receive sufficient proceeds to restore the Leased Premises as set forth above, then Lessee may terminate this Lease and the City shall promptly pay to Lessee the Unamortized Portion of the Lessee’s Contribution (measured as of the date of termination). Page 35 of 43 2nd Amended Restated Stadium Lease Draft (b) The City shall cooperate fully with Lessee in the handling and conduct of any prospective or pending condemnation proceedings with respect to the Leased Premises or any part thereof and will, to the extent it may lawfully do so, permit Lessee to litigate in any such proceedings in the name and behalf of the City and for the purpose of seeking and obtaining a separate award for damage to the Removables, the value of Lessee’s leasehold estate, and damage to Lessee’s business. In no event will the City voluntarily settle, or consent to the settlement of, any prospective or pending condemnation proceeding with respect to the Leased Premises or any part thereof without the written consent of Lessee. Notwithstanding the foregoing, if as a result of any condemnation, an Untenantable Condition exists or if the damage caused thereby occurs during the last three (3) years of the Term, Lessee shall have the right and option to terminate this Lease by providing written notice to the City to such effect whereupon this Lease shall terminate as of the date set forth in such notice and the City shall pay to Lessee the Unamortized Portion of the Lessee’s Contribution. The provisions of this Article XII shall survive the termination of this Lease. ARTICLE XIII MISCELLANEOUS Section 13.1. Amendments, Changes and Modification. No amendment, change, addition to or waiver of any of the provisions of this Lease shall be binding upon the parties hereto unless in writing signed by an Authorized Lessee Representative and the Mayor of the City. Section 13.2. Applicable Law Venue. The Lease shall be governed exclusively by the provisions hereof and by the applicable laws of the State. Venue for any proceeding to enforce this Lease shall be in Nueces County, Texas. Section 13.3. Severability. If any provision of this Lease is held to be illegal, invalid, or unenforceable under present or future laws effective during the Term such provision shall be fully severable and this Lease shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Lease. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Lease a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and still be legal, valid, or enforceable. Section 13.4. Notices and Demands. Any notices or other communications required or desired to be given to the other party hereto shall be given in writing and delivered by courier, overnight delivery service, facsimile transaction or through the U.S. postal service, postage prepaid and by certified mail, return receipt requested, at the following addresses: To the City: City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention: City Manager Fax: (361) 880-3839 With copy to: City of Corpus Christi P.O. Box 9277 Corpus Christi, Texas 78469-9277 Attention: City Attorney Fax: (361) 880-3239 Page 36 of 43 2nd Amended Restated Stadium Lease Draft To Lessee: Corpus Christi Baseball Club, L.P. 734 E. Port Ave. Corpus Christi, Texas 78401 Attention: Wes Weigle wweigle@cchooks.com With copy to: Dan O’Neill 501 Crawford Street, Suite 500 Houston, Texas 77002 doneill@astros.com With copy to: Giles Kibbe 501 Crawford Street, Suite 500 Houston, Texas 77002 Section 13.5. References. All references in this Lease to particular Articles or sections are references to Articles or sections of this Lease, unless otherwise indicated. Article and section headings are furnished for convenience only and do not constitute a part of this Lease. References in the singular number in this Lease shall be considered to include the plural, if and when appropriate, and vice versa. Any times referred to herein shall be deemed references to Corpus Christi, Texas, time. Section 13.6. Successors and Assigns. The terms and provisions of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Section 13.7. Multiple Counterparts. This Lease may be executed in multiple counterparts, each of which shall be an original but all of which together shall constitute but one and the same instrument. Section 13.8. Recordation. The City and Lessee shall not record this Lease, but both parties agree, on request of the other, to execute a memorandum of lease in recordable form and complying with applicable laws of the State, which memorandum of lease may be recorded by the requesting party. Section 13.9. Attorneys' Fees. The prevailing party in any litigation related to this Lease shall be entitled to recover from the non-prevailing party or parties the reasonable attorneys' fees and costs incurred by such prevailing party in connection with such litigation. Section 13.10. Time is of the Essence. Time is expressly declared to be of the essence in this Lease. Section 13.11. Landlord/Tenant Relationship. This Lease establishes a landlord/tenant relationship between the parties. It does not create any other type of relationship between the, such as one of agency, partnership, or joint venture. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. Section 13.12 Lessee's Remedial Work. Lessee shall be responsible for performing or causing to be performed, and for paying the cost of performing, any and all corrective or remedial actions required by applicable Governmental Authority to be performed with respect to any environmental event caused by Lessee, or any of its agents, contractors, or subcontractors at any time (“Lessee's Remedial Work”). Lessee shall promptly inform the City and all applicable Governmental Authorities of any environmental event or Hazardous Materials discovered by Lessee (or any agent, contractor or subcontractor of Lessee) in, on or under the Leased Premises and promptly shall furnish to the City any and all reports and other Page 37 of 43 2nd Amended Restated Stadium Lease Draft information available to Lessee concerning the matter. Lessee shall thereafter promptly consult with the City as to the steps to be taken to investigate and, if necessary, remedy such matter. Lessee shall select an independent environmental consultant to evaluate the condition of the Leased Premises and materials thereon and therein, at Lessee's cost and expense. If it is determined pursuant to such evaluation that remediation of the same is required by this Section 13.12, then Lessee shall perform Lessee's Remedial Work at its own cost and expense and with due diligence. Section 13.13 The City's Remedial Work. Subject to the limitation of the City’s Contribution, the City shall be responsible for performing or causing to be performed, and for paying the cost of performing, any and all corrective or remedial actions required by applicable Governmental Authority to be performed with respect to (i) any environmental event caused by the City or any of its agents, contractors or subcontractors or (ii) any Hazardous Materials that were introduced to the Leased Premises on or before the Commencement Date (but excluding Hazardous Materials introduced by Lessee or its agents, contractors or subcontractors at any time) (the “City's Remedial Work”). The City shall promptly inform Lessee and all applicable Governmental Authorities of any such environmental event or any Hazardous Materials discovered by the City (or any agent, contractor or subcontractor of the City) in, on or under the Leased Premises and promptly shall furnish to Lessee any and all reports and other information available to the City concerning the matter. The City shall thereafter promptly consult with Lessee as to the steps to be taken to investigate and, if necessary, remedy such matter. The City shall select an independent environmental consultant to evaluate the condition of the Leased Premises and materials thereon and therein, at the City's cost and expense. If it is determined pursuant to such evaluation that remediation of the same is required by this Section 13.13, then the City shall perform, or cause to be performed, the City's Remedial Work at its own cost and expense and with due diligence. Section 13.14 Settlement By Mutual Agreement. In the event any dispute, controversy or claim between or among the Parties arises under this Lease or is connected with or related in any way to this Lease or any right, duty or obligation arising herefrom or the relationship of the Parties hereunder (a “Dispute or Controversy”), including, but not limited to, a Dispute or Controversy relating to the effectiveness, validity, interpretation, implementation, termination, cancellation or enforcement of this Lease, the Parties shall first attempt in good faith to settle and resolve such Dispute or Controversy by mutual agreement in accordance with the terms of this Section 13.14. In the event a Dispute or Controversy arises, either Party shall have the right to notify the other that it has elected to implement the procedures set forth in this Section 13.14. Within fifteen (15) days after delivery of any such notice by one Party to the other regarding a Dispute or Controversy, the Authorized Representative of the Parties shall meet at a mutually agreed time and place to attempt, with diligence and good faith, to resolve and settle such Dispute or Controversy. Should a mutual resolution and settlement not be obtained at the meeting of the Authorized Representatives for such purpose or should no such meeting take place within such fifteen (15) day period, then either party may by notice to the other Party submit the Dispute or Controversy to mediation. Section 13.15 Covenants Running with the Estates in Land. The Parties hereto covenant and agree that all of the conditions, covenants, agreements, rights, privileges, obligations, duties, specifications, and recitals contained in this Lease, except as otherwise expressly stated herein, shall be construed as covenants running with title to the Leased Premises, and the leasehold estate hereunder, respectively, which shall extend to, inure to the benefit of and bind, the City and Lessee, and their permitted successors and assigns, to the same extent as if such successors and assigns were named as original parties to this Lease, such that this Lease shall always bind the owner and holder of any fee or leasehold interest in or to the Leased Premises, or any portion thereof, and shall bind predecessors thereof except as otherwise expressly provided herein. Page 38 of 43 2nd Amended Restated Stadium Lease Draft Section 13.16 Non-Appropriation. (a) Current Expenses. Except for the funds to be provided pursuant to Section 3.2, the obligations of the City for payment and other monetary obligations under this Lease are each subject to an appropriation and, accordingly, (i) shall constitute a current expense of the City in the fiscal year of the City to which an obligation applies and (b) shall not constitute an indebtedness of the City within the meaning of any applicable governmental rule. Nothing herein shall constitute a pledge by the City of any funds, other than funds designated pursuant to lawful appropriations from time to time to pay any money or satisfy any other monetary obligation under any provision of this Lease. (b) Result of Non-Appropriation. If a non-appropriation occurs in response to a request for a proposed Appropriation, the City shall provide Lessee with written notice of such non-appropriation on or before the twentieth (20th) day after the non-appropriation. Any non-appropriation shall constitute a City Default hereunder. Section 13.17. Authority to Execute. Each of the Parties acknowledges that the individual who has executed this Lease has been duly authorized to execute this Lease. A certified copy of the required City ordinance or action of Lessee’s board of directors has been furnished by each Party to the other Party for attachment to this Lease. Section 13.18. Captions. The captions in this Lease are for convenience only and are not a part of this Lease. The captions do not in any way limit or amplify the terms and provisions of this Lease. Section 13.19. Limitation of Leasehold. City does not warrant its title to the Leased Premises. This Lease and the rights and privileges granted Lessee in and to the Leased Premises are subject to all covenants, conditions, restrictions, and exceptions of record or apparent. Nothing contained in this Lease may be construed to imply the conveyance to Lessee of rights in the Leased Premises that exceed those owned by City. Section 13.20. Non-Discrimination. Lessee warrants that it is and will continue to be an Equal Opportunity Employer. Lessee covenants and agrees that Lessee will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Leased Premises, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. The City hereby reserves the right to take the action as the United States may direct to enforce this covenant. Section 13.21. Not for Benefit of Third Parties. This Lease is only for the benefit of the City and Lessee, and no third party has any rights or claims under this Lease. No provision of this Lease creates a third party claim against the City or Lessee beyond that which may legally exist in the absence of any provision of this Lease. Section 13.22. Other City Ordinances. This Lease and the ordinance that authorized the execution of this Lease do not operate to repeal, rescind, modify, or amend any ordinances or resolutions of the City relating to the use or obstruction of streets, the granting of permits, and any regulations relating to the preservation of order and movement of traffic, or any other ordinances, resolutions, or regulations not specifically set forth in the ordinance authorizing this Lease. Notwithstanding the foregoing, if any of such ordinances or resolutions materially and adversely affects Lessee’s express rights hereunder or Lessee’s ability to operate the Leased premises in accordance with the terms and conditions of this Lease, then Lessee shall have the right to terminate this Lease without further liability to the City. Page 39 of 43 2nd Amended Restated Stadium Lease Draft Section 13.23. Publication. Lessee agrees to pay the costs of newspaper publication of this Lease and the ordinance authorizing the execution of this Lease, as required by the City Charter. - COMPLETED Section 13.24. Surrender. Lessee acknowledges and understands that the City’s agreement to lease the Leased Premises to Lessee is expressly conditioned on the understanding that the Leased Premises must be surrendered, upon the expiration, termination, or cancellation of this Lease, in as good a condition as received, reasonable use and wear, Force Majeure events, acts of God, fire and flood damage or destruction where Lessee is without fault, excepted. Section 13.25. Conditions Precedent. This Lease shall not be effective or binding upon Lessee until such time, if ever, that the following conditions are satisfied: (a) City shall have acquired the Land and Leased Premises from the Port; (b) the City shall have entered into the Parking Area Master Lease with the Port; (c) Lessee’s completion of and satisfaction with its due diligence investigation with respect to the condition of title to the Land and the Land’s compliance with applicable environmental laws, including confirmation that the Land and Leased Premises are free from Hazardous Materials; (d) the Sanctioning Association shall have approved Lessee’s application and request to relocate the Team; and (e) Lessee shall have received such assurances as may be required by Lessee to confirm that lands adjacent to the Leased premises will be restricted against development that would materially and adversely impact Lessee’s operations at the Leased Premises or ability to attract customers including, but not limited to, competitive use restrictions and height restrictions on adjacent buildings so as to prevent shadows from being cast upon the Baseball Stadium’s playing field. - COMPLETED EXECUTED IN DUPLICATE, each of which shall be considered an original, to be effective as of the Effective Date. THE CITY: ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta, Jermel Stevenson, City Secretary Director of Parks and Recreation Date: Date: LESSEE: CORPUS CHRISTI BASEBALL CLUB, L.P. By: Date: Page 40 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT “A” Page 41 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT B - COMPLETED Lessee Buildout of Corpus Christi Ball Park Item Description (or reasonable equivalent) Stadium and Office Fixtures Network/Internet Server includes hardware, software, and installation Admin/Ticket Office computers includes hardware, software, based on estimate of 40 (1) Copiers 2 Kyocera-Mita KM-4030 models (Admin and Ticket Offices) Printers 2 Oki C9300 Color Printers, 1 Samsung SCX-5312F (Press Box) Various individual printers (as needed, estimate of five) Phone System Brookside Technology System, includes phones and installation (2) Office televisions 8 -19 inch TV’s Office Furniture Includes desks, chairs, cubicles, plants, various decorative items (Admin, Ticket, & Press) Security System Based on Diebold system installed at Dell Diamond Refrigerator for Offices 2 Whirlpool 20.9 cubic foot (Admin and Ticket) Microwave for Offices 2 (Admin and Ticket) Office window shades Basic blinds Ticket System Dependent on type of system implemented Office Art Acquisition and framing of 60 pieces (Admin, Ticket, & Press) Point of Sale System Based on Retail Automation Systems version at Railyard Radios Based on Aircom Electronic Supply system used at Dell Diamond Maintenance materials Vaccuums/Blowers/Brooms/Hoses/Etc. Concession equipment Based on kitchen/stands/equipment for 6,000 seat, 20 suite stadium Cup Holders Golf Carts 4 needed for maintenance / game day crew Signage Based on total used at Dell Diamond Weather Computer Based on KVUE system at Dell Diamond EMS Defibrillator Wheel Chairs Two needed Scissor Lift for wheelchairs Radar Board Direct TV or Cable System Inflatables Sportscourt Swimming Pool Rockwall Basketball Goal and Rainbow Play System Picnic Tables Instant Replay-click effect to be used with the scoreboard Switcher to be used with the scoreboard 3 Beta Cams to be used with the scoreboard AV System-click effects based on Ford Audio & Video Pro-AV Animation to be used with the scoreboard Trash Compactor 20 Portable Concession Stands Page 42 of 43 2nd Amended Restated Stadium Lease Draft Club House Free weights/benches/machines Stimulation – Hi Fi System Washers and Dryers Skyline Equipment models in use at Dell Diamond Refrigerators 2 Whirlpool 20.9 cubic foot Stereos Adjustable based on need Furniture Stools, chairs, desks, tables for both Fixtures Televisions 4 -19 inch TVs Garbage Bins Whirlpools Training Tables Oven / Range Microwave Coffee Machines Ice Machines Home & Visitor Field Equipment Batting Cages Same Fielder’s Choice model used at Dell Diamond On Deck Circles Partac Peat Corp. Model (Includes Advertising) Tarps By Covermaster, includes all needed (Field, Mound, etc) Lawn Mowers Greensmaster 3050 (2) (Includes extended warranty) Lawncare equipment Hand powered mowers, trimmers, various tools Backstop From Sport Supply Group Carts Toro Workman 3200 Pitching Machine Infield Cart Toro Sand Pro 2020 BP Materials Screens, etc. Scrubber Safe Suites Artwork Leather Sofas Tables and Chairs Refrigerators Televisions Page 43 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT C Corpus Christi Stadium Minimum Standards 1) Minimum 5,000 fixed chair back seats 2) Berm for 1,000 Fans 3) 360Concourse that can see the field 4) Concessions- 1 Point of Sale for every 200 fans 5) Press Box with 4 Media Bays, writing press area, & Scoreboard Operations area, approximately 2,000 sq. ft. 6) Suites to accommodate 258 people for outside seating 7) Area for a Pool to be constructed with a view of the field 8) Area for kids Play Zone and Interactive Area 9) Stadium Club, approximately 2,500 sq. ft. 10) Team Offices for 20 year round full time staff, approximately 3,000 sq. ft. 11) Ticket Office & Ticket Windows at Gates 12) Area for year round Novelty Store, approximately 1,500 sq. ft. 13) LED Video Scoreboard 14) Lighted Outside Stadium Marquee, with message changing capabilities 15) Kitchen/Commissary – Storage for both wet and dry food storage 16) Home & Visitor Clubhouses to Dell Diamond Standards 17) Novelty & Retail Storage, approximately 1,000 sq. ft. 18) Grounds Crew Garage 19) Batting Cages 20) Staff Locker Rooms, Umpire Rooms, per NAPBL Standards 21) Stadium Concourse above seating sections 22) Field Drainage System – to Dell Diamond Standards 23) “AAA” Lighting Standards, per NAPBL Standards 24) Restrooms to city-potty parity code 25) Parking- minimum 1,500 spaces adjacent to the stadium 26) Dugouts to Dell Diamond Standards 27) Home & Visitor Bullpens in the outfield and accessible to fans 28) Field access for grounds crew including trucks & tractors 29) Distributed Sound System 30) Flag Poles & Foul Poles 31) Advertising Signage – Cabinets & Backlit Signs includes on field and in concourse and all related wiring and data cabling Page 44 of 43 2nd Amended Restated Stadium Lease Draft EXHIBIT D Purchasing Policy [To Be Attached] DATE: January 28, 2020 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 two-year service agreement with Miguel Hernandez Jr., dba Universal Tool and Die, of Corpus Christi, Texas, for a total amount not to exceed $90,000.00 for on- call fabrication, welding, and repair services for the Wastewater Division of the Utilities Department, effective upon issuance of notice to proceed, with first-year funding in the amount of $33,750.00 available in the Wastewater Fund. SUMMARY: This two-year service agreement provides fabrication, welding, and repair services at the City’s wastewater treatment plants and lift stations. There is currently no contract in place for this service. When service was previously needed, each wastewater treatment plant would seek its own competitive quotes. Having this service agreement contract in place secures better pricing due to economies of scale, reduce s the administrative time to solicit bids each time service is needed, and decreases downtime of non-operational equipment. BACKGROUND AND FINDINGS: The wastewater treatment plants and lift stations operate various pieces of equipment whose metal components such as metal stands for pumps and motors, column structure supports for stilling wells and clarifier bridges, and bar screens ultimately age and deteriorate over time and require fabrication, welding, or repair to extend the longevity of the equipment and keep the equipment operational. The needed fabrication and welding work exceed the capacities of the in-house maintenance crews. The wastewater division will utilize this agreement to maintain equipment in good operating condition, in order to ensure that all equipment is online and operational, and in compliance with the Texas Commission on Environmental Quality (TCEQ) requirement that all equipment be in good working order. Fabrication, Welding, and Repair Services for Utilities Department AGENDA MEMORANDUM Action Item for the City Council Meeting of January 28, 2020 The Contracts and Procurement Department conducted a competitive RFB process to obtain bids. The City received two responsive, responsible bids. Staff is recommending the award to the lowest, responsible bidder, Miguel Hernandez Jr., Universal Tool and Die. ALTERNATIVES: An alternative to awarding this service agreement is to reject the bid , review the specifications, and re-bid the contract. Another alternative is for staff to continue soliciting competitive quotes each time the need for service arises. However, having to solicit quotes as needed may delay repair/service and increase equipment downtime, which can result in a TCEQ violation for offline non-operational equipment. FISCAL IMPACT: The fiscal impact for the Wastewater Division of the Utilities Department is an amount not to exceed $33,750.00 for the first year of the two-year service agreement for on-call fabrication, welding, and repair services at the City’s wastewater treatment plants and lift stations . The remaining $56,250.00 for the second year will be budgeted in future years through the annual budget process. Funding Detail: Fund: 4200 Wastewater Organization/Activity: 33100 Broadway Wastewater Plant Mission Element: 064 Treat Wastewater Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted Fund: 4200 Wastewater Organization/Activity: 33110 Oso Wastewater Plant Mission Element: 064 Treat Wastewater Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted Fund: 4200 Wastewater Organization/Activity: 33120 Greenwood Wastewater Plant Mission Element: 064 Treat Wastewater Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted Fund: 4200 Wastewater Organization/Activity: 33130 Allison Wastewater Plant Mission Element: 064 Treat Wastewater Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted Fund: 4200 Wastewater Organization/Activity: 33140 Laguna Madre Wastewater Plant Mission Element: 064 Treat Wastewater Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted Fund: 4200 Wastewater Organization/Activity: 33150 Whitecap Wastewater Plant Mission Element: 064 Treat Wastewater Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted Fund: 4200 Wastewater Organization/Activity: 33210 Lift Station Operation & Maint Mission Element: 065 Manage WW Lift Stations Project # (CIP Only): N/A Account: 530215 Maintenance and Repairs – Contracted RECOMMENDATION: Staff recommends approval of this motion authorizing a two-year service agreement with Miguel Hernandez Jr. dba Universal Tool and Die for fabrication, welding, and repair services for the Wastewater Division of the Utilities Department. LIST OF SUPPORTING DOCUMENTS: Service Agreement Bid Tabulation DATE: January 28, 2020 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 two-year supply agreement with DPC Industries, Limited Partnership of Houston Texas, for an amount not to exceed $579,162.80, for the purchase of Liquid Chlorine in Railcars to be used during the water treatment process as the primary disinfectant at O.N. Stevens Water Treatment Plant, effective upon issuance of notice to proceed, with FY2020 funding in an estimated amount of $193,054.26 available through the Water Fund. SUMMARY: This is a supply agreement for liquid chlorine for the O.N. Stevens Water Treatment Plant. Chlorine is used to disinfect the water and make it safe for public consumption. BACKGROUND AND FINDINGS: Chlorine is the disinfectant used during the water treatment process. Disinfection is done at the beginning of the treatment process to reduce organic nutrients in the raw water and as a final polishing before distribution to the City. The City currently receives liquid chlorine in railcar from Brenntag Southwest Inc of Lancaster, Texas. The current twelve-month supply agreement, Contract 1923, expires February 14, 2020, and has no extensions. The total amount not to exceed $303,288.00 is for a quantity of 1,260 tons plus 200 days of detention charges if needed. Contracts and Procurement Department conducted a competitive Request for Bid process to obtain bids for a new contract. The City received two responsive, responsible bids, and is recommending award to the lowest, responsive, responsible bidder, DPC Industries, Supply Agreement for Liquid Chlorine in Railcars for Water Treatment for the O.N. Stevens Water Treatment Plant O.N. Stevens Water Treatment Plant AGENDA MEMORANDUM Action Item for the City Council Meeting of January 28, 2020 Limited Partnership. ALTERNATIVES: There is no feasible alternative to meet production demand. Not using chlorine will result in a failure to protect the public from harmful conditions in the water and in regulatory noncompliance violations with the Environmental Protection Agency and the Texas Commission on Environmental Quality. A future capital improvement project for on-site chlorine generation is in design with construction completion expected in 2024. FISCAL IMPACT: The fiscal impact to the Utilities Department is an amount not to exceed $579,162.80 for this two-year supply agreement for the purchase of liquid chlorine in railcar, which is the primary disinfectant used during the water treatment process. Approximately $193,054.26 is required for FY2020, and the remaining cost will be budgeted in future years through the annual budget process. The current supply agreement that expires in February 2020 is for twelve months and not to exceed $303,288.00. Funding Detail Fund: 4010 Water Organization/Activity: 31010 Stevens Filter Plant Mission Element: 062 Treat water Project # (CIP Only): N/A Account: 520010 Purification Chemicals RECOMMENDATION: Staff recommends approval of this motion authorizing a two-year supply agreement with DPC Industries, Limited Partnership of Corpus Christi, Texas, for the purchase of liquid chlorine in railcar as presented. LIST OF SUPPORTING DOCUMENTS: Supply Agreement Bid Tabulation Item Description Unit Qty 2 Years Unit Rate Total Price Unit Rate Total Price 1 Liquid Chlorine in 90 ton Rail Car Tons 2,520.00 221.89$ 559,162.80$ 258.00$ 650,160.00$ 2 Rail Car Detention charge after free days Days 400.00 50.00$ 20,000.00$ 75.00$ 30,000.00$ 579,162.80$ 680,160.00$ Brenntag Southwest Inc Lancaster, TX Bid Tabulation RFB 2657- Liquid Chlorine in Rail Car Utilities Department Total City of Corpus Christi Contracts and Procurement Department BUYER : JAPAN SHAH DPC Industries Company Houston, TX DATE: January 28, 2020 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 two-year supply agreement with Southern Ionics Inc., of West Point, Mississippi, in an amount not to exceed $1,221,677.00, for the purchase of Sodium Bisulfite to be used by the Wastewater Division of the Utilities Department to dechlorinate wastewater, effective upon issuance of notice to proceed, with first-year funding in the amount of $610,838.00 available in the FY 2020 Wastewater Fund. SUMMARY: This motion authorizes a two-year supply agreement with Southern Ionics Inc., of West Point, Mississippi, for Sodium Bisulfite for the Utilities Department, Wastewater Division. This chemical is necessary for the dechlorination of wastewater effluent as required by Texas Commission on Environmental Quality (TCEQ) environmental permits. BACKGROUND AND FINDINGS: Chlorine is applied during the treatment process to disinfect the wastewater, and then Sodium Bisulfite is used to remove excess chlorine residual from the wastewater effluent before it is discharged from the treatment plant. Dechlorination of the disinfected wastewater effluent prevents harmful exposure of chlorine and chlorine compounds o n plant and aquatic life. The current contract, Supply Agreement 1026, expires in April 2020. The contract capacity was used faster than expected primarily due to reduced efficiencies caused by age and deterioration of the Breakpoint Chlorination System and the Aeration Systems at Oso Wastewater Treatment Plant. The Utilities Department is currently procuring this chemical via Amendment No. 4 of the Supply Agreement 1026, which was approved by City Council Sodium Bisulfite for the Wastewater Treatment Plants AGENDA MEMORANDUM Action Item for the City Council Meeting of January 28, 2020 in December 2019 to increase the contract capacity until the new supply agreement is executed. The Contracts and Procurement Department conducted a competitive RFB process to obtain bids. The City received one responsive, responsible bid. Two other bidders sent letters stating they could not be competitive at this time. Staff is recommending the award to the lowest, responsible bidder, Southern Ionics Inc. ALTERNATIVES: There are no alternatives to approving this supply agreement. This chemical is necessary for public health and safety, and to meet TCEQ environmental permit requirements. FISCAL IMPACT: The fiscal impact for the Utilities Department is an amount not to exceed $610,838.00 for the first-year of the two-year supply agreement from the FY 2020 Wastewater Fund, with the remaining cost of $610,839.00 to be budgeted in future years through the annual budget process. This Supply Agreement is for dechlorination of wastewater effluent at the wastewater treatment plants as required by TCEQ compliance regulations. FUNDING DETAIL: Fund: 4200 Wastewater Organization/Activity: 33100 Broadway Wastewater Plant Mission Element: 064 Project # (CIP Only): N/A Account: 520010 Purification Chemicals Fund: 4200 Wastewater Organization/Activity: 33110 Oso Wastewater Plant Mission Element: 064 Project # (CIP Only): N/A Account: 520010 Purification Chemicals Fund: 4200 Wastewater Organization/Activity: 33130 Allison Wastewater Plant Mission Element: 064 Project # (CIP Only): N/A Account: 520010 Purification Chemicals Fund: 4200 Wastewater Organization/Activity: 33140 Laguna Madre Wastewater Plant Mission Element: 064 Project # (CIP Only): N/A Account: 520010 Purification Chemicals RECOMMENDATION: Staff recommends approval of this motion authorizing a two -year supply agreement with Southern Ionics Inc. for Sodium Bisulfite for the Wastewater Division of the Utilities Department. LIST OF SUPPORTING DOCUMENTS: Supply Agreement Bid Tabulation CITY OF CORPUS CHRISTI BID TABULATION RFB #2754 Contracts and Procurement Sodium Bisulfite Senior Buyer: Cynthia Perez Unit Extended Price Price 1 Sodium Bisulfite -Broadway Treatment Plant LBS 600,000 0.2441 $146,460.00 2 Sodium Bisulfite- Oso Plant LBS 3,470,000 0.2441 $847,027.00 3 Sodium Bisulfite - Allison Plant LBS 600,000 0.2441 $146,460.00 4 Sodium Bisulfite - Laguna Madre Plant LBS 300,000 0.2441 $73,230.00 5 *Unloading Delay HRS 100 $85.00 $8,500.00 Total $1,221,677.00 * First two hours free for unloading, after a two hour delay the $85.00 fee will be enforced. Southern Ionics, Inc. West Point, MS ITEM DESCRIPTION Unit 24 Month- Qty. DATE: January 28, 2020 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 a three-year service agreement with Smart Plumbing, Incorporated of Corpus Christi, Texas with an amount not to exceed $626,643.75, to perform on-call plumbing repair services to City owned facilities, effective upon issuance of notice to proceed, with FY 2020 funding in an estimated amount of $139,254.17 available through the Facility and Property Management Fund. SUMMARY: This motion authorizes a service agreement with Smart Plumbing, Incorporated to perform on-call plumbing repair services to City owned facilities. These services are necessary to maintain the buildings from deteriorating and ensure code compliant status. The services will be provided on an as needed basis. BACKGROUND AND FINDINGS: Asset Management has an operational need to contract plumbing services on an on -call basis, due to not having sufficient resources to maintain and perform the necessary plumbing repairs to City owned facilities. The Contractor shall furnish labor, parts, materials, tools and equipment necessary to perform plumbing services to City owned facilities. These services will be performed on an as needed basis under individual job orders that will be based on unit prices. Service Agreement for Plumbing Services and Repairs for Asset Management AGENDA MEMORANDUM Action Item for the City Council Meeting January 28, 2020 Contracts and Procurement conducted a competitive Request for Bid process to obtain bids for a new contract. The City received one bid that was non-responsive and one bid that was a responsive, responsible bid, and is recommending the award to Smart Plumbing, Incorporated. ALTERNATIVES: The alternative is to perform the work in-house. However, the Asset Management Department would have to increase their staff in various trades in order to keep up with the high demand in a timely manner. FISCAL IMPACT: The fiscal impact for Asset Management in FY 2020 is $139,254.17. The remaining cost will be budgeted in future years during the annual budget process. FUNDING DETAIL: Fund: 5115 Facility and Property Management Organization/Activity: 40300 Facility Management and Maintenance Mission Element: 191 Operate City Buildings and Facilities Project # (CIP Only): N/A Account: 530215 Maintenance & Repairs-Contracted RECOMMENDATION: Staff recommends approval of this motion authorizing a three-year service agreement with Smart Plumbing, Incorporated plumbing repair services as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation Service Agreement Service Agreement Standard Form Page 1 of 7 Approved as to Legal Form July 11, 2019 SERVICE AGREEMENT NO. 2708 Plumbing Services and Repairs for Asset Management THIS Plumbing Services and Repairs for Asset Management Agreement ("Agreement") is entered into by and between the City of Corpus Christi, a Texas home- rule municipal corporation (“City”) and Smart Plumbing, Incorporated (“Contractor"), effective upon execution by the City Manager or the City Manager’s designee (“City Manager”). WHEREAS, Contractor has bid to provide Plumbing Services and Repairs for Asset Management in response to Request for Bid/Proposal No. 2708 (“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 Plumbing Services and Repairs for Asset Management (“Services”) in accordance with the attached Scope of Work, as shown in Attachment A, the content of which is incorporated by reference into this Agreement as if fully set out here in its entirety, and in accordance with Exhibit 2. 2. Term. This Agreement is for three years, with performance commencing upon the date of issuance of a notice to proceed from the Contract Administrator or the Contracts and Procurement Department. The parties may mutually extend the term of this Agreement for up to zero additional zero-year periods (“Option Period(s)”), provided, the parties do so by written amendment prior to the expiration of the original term or the then-current Option Period. The City’s extension authorization must be executed by the City Manager or designee. 3.Compensation and Payment. This Agreement is for an amount not to exceed $626,643.75, 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: Rudy Soliz Department: Asset Management Phone: (361) 826-1980 Email: RudyS@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: Rudy Soliz Title: Operations Division Superintendent Address: 5352 Ayers, Bldg. 3A, Corpus Christi, Texas 78415 Phone: (361) 826-1980 Fax: (361) 826-1989 IF TO CONTRACTOR: Smart Plumbing Incorpoated Attn: Reed Glendenning Service Agreement Standard Form Page 5 of 7 Approved as to Legal Form July 11, 2019 Title: President Address: P.O. Box 81429, Corpus Christi, Texas 78468 Phone: (361) 993-5039 Fax: (361) 993-7838 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. 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. 2708 Exhibit 2: Contractor’s Bid/Proposal Response Reed Glendenning President 1-06-2020 Revised 4.4.19 Attachment A - Scope of Work 1.1 General Requirements/Background Information The Contractor shall provide routine and emergency plumbing repair services to facilities located at City owned locations as listed in the Scope of Work on an as needed basis. 1.2 Scope of Work A. The Contractor shall provide all labor, materials, parts, tools, and equipment necessary to perform plumbing services on an as needed basis. B. The Contractor shall have licensed journeyman plumbers with helpers to provide the services needed. C. The Contractor shall have the proper equipment to inspect video pipe, hydro jet clogged sewer lines, hydrostatic test slab leaks, gas leaks, and vacuum septic systems. D. All work performed must be accomplished in a manner that meets all applicable specifications, trade standards and provisions, and federal, state, and local codes and regulations. 1.3 Routine and Emergency Service Calls A. The Contractor shall be available to perform services on an as needed basis. B. The City will provide a work order before commencement of services. The Contractor shall request the work order from the Operation Superintendent, if City fails to provide the order. C. In order to minimize overstaffing and equipment downtime, the City staff shall provide a work description in the work order or explain by email/phone. Based on the description, the Contractor will have a general idea of the work prior to commencement. D. After inspection of work, if the anticipated cost of Labor and Materials exceeds $1000, the Contractor must obtain approval from the Operation Superintendent prior to commencement of work. E. The Contractor shall perform routine service calls during normal working hours 8:00 AM to 5:00 PM, excluding City holidays. The Contractor shall be on site within two hours or within an agreeable time frame determined by the Operation Superintendent. F. Emergency service calls are defined as an event which requires immediate action to prevent a hazard to life, health, safety, property or to avoid failure of an equipment. When an emergency arises, the Operation Superintendent shall notify the Contractor of the emergency repair at the facility. The Contractor shall Revised 4.4.19 be on site within an agreeable time frame determined by the Operation Superintendent. G. The Contractor shall check in with the Operation Superintendent at the location upon arrival and check out after completion of work. H. If the Contractor is required to leave the premises to obtain parts or other materials, the Operation Superintendent must be notified. I. The Contractor shall only invoice the City for the time spent on the property. The City will not pay for time spent in route or traveling to acquire parts/supplies. J. Upon completion of the routine or emergency service call, the Contractor’s representative shall provide a job ticket. The job ticket shall include, but not limited to: a.Company Name b. Name of technician and/or helper c. Date of service d. Detailed description, of the work performed e. Root causes of failure, if applicable f. Parts used g. Work order number h. Total time spent on job 1.4 Invoicing A. The Contractor shall submit invoices monthly to Accounts Payable, with a copy of invoice sent to Contract Administrator. Invoices shall include: 1.Work description 2.Location and date of repairs 3.List of materials replaced 4.Labor hours B. Hourly labor rates shall be actual time worked at the job site. C. The Contractors’ mileage, freight, travel time will not be accepted. D. Parts and materials shall be cost plus markup percentage. E. Upon request, the Contractor shall provide proof of cost with all invoices that list such charges. 1.5 Safety Instructions A. The Contractor shall barricade or place cones around work area before commencing services. B. The Contractor shall try to minimize interference to the building occupants with their day to day operations. C. The Contractor shall not store worn or defective parts on City premises at the end of workday, unless otherwise approved by the Contract Administrator. Revised 4.4.19 D. The Contractor must clean work site from debris or hazards after completion of work. E. The Contractor must dispose of all worn or defective parts, oils, solvents in accordance with all applicable laws, rules and regulations to ensure the highest level of safety to the environment and public health. 1.6 Contractor Quality Control and Superintendence The Contractor shall establish and maintain a complete Quality Control Program that is acceptable to the Contract Administrator to assure that the requirements of the Contact are provided as specified. The Contractor will also provide supervision of the work to ensure it complies with the contract requirements. 1.7 Warranty The Contractor shall provide one-year warranty on workmanship. The Contractor shall provide one-year warranty or manufacturer warranty on all new parts. 1.8 Work Site and Conditions The Contractor may potentially perform plumbing services to the following locations on an as needed basis. BUILDING Address Zip Code 1 Health Department 1702 Horne Rd, Corpus Christi, TX 78416 2 City Hall 1201 Leopard St, Corpus Christi, TX 78401 3 Gas Department 4225 S Port Ave, Corpus Christi, TX 78415 4 Police Department 321 John Sartain St, Corpus Christi, TX 78401 5 Municipal Courts 321 John Sartain St, Corpus Christi, TX 78401 6 Frost Bank 2402 Leopard St, Corpus Christi, TX 78408 7 Water Department 2726 Holly Rd, Corpus Christi, TX 78415 8 Broadmoor Senior Center 1651 Tarlton St, Corpus Christi, TX 78415 9 Ethel Eyerly Senior Center 654 Graham Rd. Corpus Christi, TX 78418 10 Garden Senior Center 5325 Greely Dr, Corpus Christi, TX 78412 11 Greenwood Senior Center 4040 Greenwood Dr, Corpus Christi, TX 78416 Revised 4.4.19 12 Lindale Senior Center 3135 Swantner St, Corpus Christi, TX 78404 13 Northwest Senior Center 9725 Up River Rd, Corpus Christi, TX 78410 14 Oveal Williams Senior Center 1414 Martin Luther King Dr, Corpus Christi, TX 78401 15 Zavala Senior Center 510 Osage St, Corpus Christi, TX 78405 16 La Retama Central Library 805 Comanche St, Corpus Christi, TX 78401 17 Garcia Public Library 5930 Brockhampton St, Corpus Christi, TX 78414 18 Janeth Harte Public Library 2629 Waldron Rd, Corpus Christi, TX 78418 19 Hopkins Public Library 3202 McKenzie Rd, Corpus Christi, TX 78410 20 McDonalds Library 4044 Greenwood Dr, Corpus Christi, TX 78416 21 Neyland Public Library 1230 Carmel Pkwy, Corpus Christi, TX 78411 22 Joe Garza Recreation Center 3204 Highland Ave, Corpus Christi, TX 78405 23 Lindale Recreation Center 3133 Swantner St, Corpus Christi, TX 78404 24 Oak Park Recreation Center 842 Erwin Ave, Corpus Christi, TX 78408 25 Oso Recreation Center 1111 Bernice Dr, Corpus Christi, TX 78413 26 Solomon Coles Rec Center 924 Winnebago St, Corpus Christi, TX 78401 27 Science and History Museum 1900 N Chaparral St, Corpus Christi, TX 78401 28 Al Kruse Tennis Center 502 King St, Corpus Christi, TX 78401 29 HEB Pool Complex 1520 Shely St, Corpus Christi, TX 78404 30 HEB Tennis Court 1520 Shely St, Corpus Christi, TX 78404 31 Central Kitchen 4141 Old Brownsville Rd, Corpus Christi, TX 78405 32 O N Stevens Plant 13101 Leopard St, Corpus Christi, TX 78410 Revised 4.4.19 33 Solid Waste Building 2525 Hygeia, Corpus Christi, TX 78415 34 Oso Wastewater Treatment Plant (WWTP) 501 Nile, Corpus Christi, TX 78412 35 Greenwood Wastewater treatment Plant 6541 Greenwood Dr, Corpus Christi, TX 78417 36 Broadway Wastewater Treatment plant 1402 W Broadway, Corpus Christi, TX 78401 37 Laguna Madre Wastewater Treatment Plant 201 Jester St, Corpus Christi, TX 78418 38 White Cap Wastewater Treatment plant 13409 White Cap St, Corpus Christi, TX 78418 39 Allison WWTP 4101 Allison St, Corpus Chishti, TX 78410 40 CEFE Landfill 2397 Co.Rd.20, Robstown, TX 78380 41 J C Elliot Transfer Station 6594 Greenwood St, Corpus Christi, TX 78415 42 City owned location City wide Attachment B - Bid/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 Contract Administrator 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 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-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 $1,000000 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 Exhibit. $500,000/$500,000/$500,000 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 Facility and Property Management Plumbing Installation, Maintenance, Repairs and Emergency Repairs 01/04/2019 sw Risk Management Valid Through 12/31/2019 Attachment D - Warranty Requirements The Contractor shall provide one-year warranty on workmanship. The Contractor shall provide one-year warranty or manufacturer warranty on all new parts. ITEM Description Unit Qty Unit Price Total Price Unit Price Total Price 1 Journeyman Plumber-Regular Hour M-F 8:00am-5:00pm HRS 3000 89.00$ 267,000.00$ $0.00 -$ 2 Plumbers Helpers-Regular Hours M- F 8:00am-5:00pm HRS 1000 49.00$ 49,000.00$ $0.00 -$ 3 Journeyman Plumber- After Hours, holidays, weekends HRS 100 111.25$ 11,125.00$ $0.00 -$ 4 Plumbers Helpers -After Hours, holidays, weekends HRS 100 61.25$ 6,125.00$ $0.00 -$ 5 Licensed Drain Cleaner- Regular Hours M-F 8:00am-5:00pm HRS 450 100.00$ 45,000.00$ $0.00 -$ 6 Licensed Drain Cleaner and Helper- Regular Hours M-F 8:00am-5:00pm HRS 300 149.00$ 44,700.00$ $0.00 -$ 7 Licensed Drain Cleaner After Hours holiday and weekend HRS 150 125.00$ 18,750.00$ $0.00 -$ 8 Licensed Drain Cleaner and Helper- After Hours holiday and weekends HRS 75 186.25$ 13,968.75$ $0.00 -$ 9 Hydro- Jetting Services HRS 75 145.00$ 10,875.00$ $0.00 -$ 10 Video Pipe Inspection HRS 75 145.00$ 10,875.00$ $0.00 -$ 11 Vacuum Truck Service HRS 75 150.00$ 11,250.00$ $0.00 -$ 12 Disposal of Waste GL 3000 0.25$ 750.00$ $0.00 -$ Item Markup%Markup% 13 Parts/ Material 19%136,850.00$ -$ Total 626,268.75$ *Non- Responsive *Shoreline failed to submit the correct bid form that had been changed by Addendum. Smart Plumbing, Incorporated Corpus Christi, TX Estimated Spend 115,000.00$ *Shoreline Plumbing Corpus Christi, TX City of Corpus Christi Bid Tabulation Contracts and Procurement Department RFB 2708 - Plumbing Services and Repairs Sr. Buyer : Cynthia Perez Asset Management Project: 20100A PM:SG Legistar No. 20-0057 Rev. 3 - 01/06/20 1 AGENDA MEMORANDUM Action Item for the City Council Meeting of January 28, 2020 DATE: January 3, 2020 TO: Peter Zanoni, City Manager THRU: Michael Rodriguez, Chief of Staff michaelrod@cctexas.com (361) 826-3732 FROM: Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Dan Grimsbo, Executive Director of Water Utilities dang@cctexas.com (361) 826-1817 Kim Baker, Director of Contracts and Procurement kimb2@cctexas.com (361) 826-3169 CAPTION: Motion awarding a contract to Urban Engineering for design, bid, and construction phase services for the Packery Channel Waterline project in the amount of $195,630.00, located in City Council District 4, effective upon notice to proceed, with funding approved and available from FY 2019 Water Capital Improvement Program. SUMMARY: This contract provides for the design, bid, and construction phase services for the construction of approximately 2,300 linear feet of 20-inch waterline along Hwy 361, crossing Packery Channel to Zahn Road in the amount of $195,630 with funding approved and available from FY 2019 Water Capital Improvement Program. BACKGROUND AND FINDINGS: The City of Corpus Christi is responsible, by agreement, for supplying water to Nueces County Water Improvement District No. 4 (NCWID#4). NCWID#4 is the water service provider for Port Aransas. The City supplies water to NCWID#4 via a 20-inch line, which transitions to twin 16- inch lines crossing the Packery Channel. Professional Services Contract Award Packery Channel Waterline (Capital Improvement Program) (Bond 2018 Proposition 1 & 2) Project: 20100A PM:SG Legistar No. 20-0057 Rev. 3 - 01/06/20 2 During Hurricane Harvey, the 20-inch waterline to NCWID#4 was exposed and damaged. Water supply to the region from the City of Corpus Christi had to be halted. The waterline was repaired under an emergency declaration. To avoid a similar situation, in case of future storm events, the existing 20-inch waterline and the twin 16-inch waterlines will be replaced with a new and deeper 20-inch waterline. This professional services contract provides for the design of the 20-inch waterline, preparation of construction plans, specifications, cost estimates, and all applicable permits for the waterline replacement. PROJECT TIMELINE: F M A M J J A S O N D J F M A M J J 2020 ConstructionBidDesign 2021 Project schedule reflects City Council award of contract in February 2020 with anticipated completion in July 2021. COMPETITIVE SOLICITATION PROCESS Urban Engineering was selected for the Packery Channel Waterline project in June 2019 under RFQ 2019-01. Packery Channel Waterline was one of five projects announced under the RFQ. Four firms submitted for the Packery Channel Waterline. Urban Engineering was the highest ranked firm and the Packery Channel Waterline project was their first stated preference. The selection committee consisted of representatives from the Utilities and Engineering Services Departments. Firms were ranked based on five factors: 1) experience of the firm, 2) experience of the key personnel with specific experience with local utilities, 3) project approach and management plan, 4) capacity to meet the project requirements and timelines, and 5) past performance. ALTERNATIVES: Any alternative to awarding this contract to Urban Engineering may result in damage to expand the existing waterline in future storm or severe weather events, halting water supply to NCWID#4. FISCAL IMPACT: This item will award the design, bid, and construction phase services to Urban Engineering for the Packery Channel Waterline project, located in City Council District 4, in the amount of $195,630, effective upon issuance of notice to proceed, with funding approved and available from FY 2019 Water Capital Improvement Program. Project: 20100A PM:SG Legistar No. 20-0057 Rev. 3 - 01/06/20 3 Funding Detail: Fund: Water Capital Improvement (Fund 4098) Mission Elem: Water Distribution System (ME 041) Project No.: Packery Channel Waterline (20100A) Account: Outside Consultants (Account #550950) Activity: 20100-A-4098-EXP RECOMMENDATION: Staff recommends approval of the professional services contract with Urban Engineering in the amount of $195,630 for the Packery Channel Waterline project. LIST OF SUPPORTING DOCUMENTS: Location & Vicinity Maps Contract 37 PROJECT LOCATION N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PACKERY CHANNEL WATERLINE LOCATION MAP NOT TO SCALE PROJECT NUMBER: 20100A PROJECT LOCATION LOCATION MAP NOT TO SCALE N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Packery Channel Waterline VICINITY MAP NOT TO SCALE Project Number: 20100A Za h n D r . Packery Channel Hwy. 3 6 1 New 20" Waterline Project Location Contract for Professional Services Page 1 of 11 SERVICE AGREEMENT NO. 2863 CONTRACT FOR PROFESSIONAL SERVICES FOR PROJECT (No./Name) 20100A – Packery Channel Water Line The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Director) Urban Engineering, 2725 Swantner Drive, Corpus Christi, Corpus Christi, Nueces County, Texas 78404 (Consultant), hereby agree as follows: TABLE OF CONTENTS ARTICLE NO. TITLE PAGE ARTICLE I SCOPE OF SERVICES ...................................................................2 ARTICLE II QUALITY CONTROL .......................................................................3 ARTICLE III COMPENSATION ............................................................................3 ARTICLE IV TIME AND PERIOD OF SERVICE ..................................................4 ARTICLE V OPINIONS OF COST ......................................................................5 ARTICLE VI INSURANCE REQUIREMENTS ......................................................5 ARTICLE VII INDEMNIFICATION .........................................................................5 ARTICLE VIII TERMINATION OF AGREEMENT ..................................................6 ARTICLE IX RIGHT OF REVIEW AND AUDIT ....................................................7 ARTICLE X OWNER REMEDIES .......................................................................7 ARTICLE XI CONSULTANT REMEDIES .............................................................8 ARTICLE XII CLAIMS AND DISPUTE RESOLUTION ..........................................8 ARTICLE XIII MISCELLANEOUS PROVISIONS ...................................................9 EXHIBITS Contract for Professional Services Page 2 of 11 ARTICLE I – SCOPE OF SERVICES 1.1 City and Consultant agree that the services provided are properly described in the Scope of Services, which is incorporated herein and attached to this Agreement as Exhibit A. The Scope of Services shall include all associated services required for Consultant to provide such Services, pursuant to this Agreement, and any and all Services that would normally be required by law or common due diligence in accordance with the standard of care defined in Article XIII of this Agreement. The approved Scope of Services defines the services to be performed by Consultant under this Agreement. 1.2 Consultant shall follow City Codes and Standards effective at the time of the execution of the contract. At review milestones, the Consultant and City will review the progress of the plans to ensure that City Codes and Standards are followed unless specifically and explicitly excluded from doing so in the approved Scope of Services attached as Exhibit A. A request made by either party to deviate from City standards after the contract is executed must be in writing. 1.3 Consultant shall provide labor, equipment and transportation necessary to complete all services agreed to hereunder in a timely manner throughout the term of the Agreement. Persons retained by Consultant to perform work pursuant to this Agreement shall be employees or subconsultants of Consultant. Upon request, Consultant must provide City with a list of all subconsultants that includes the services performed by subconsultant and the % of work performed by subconsultant (in dollars). Changes in Consultant’s proposed team as specified in the SOQ or Scope of Services must be agreed to by the City in writing. 1.4 Consultant shall not begin work on any phase/task authorized under this Agreement until they are briefed on the scope of the Project and are notified in writing to proceed. If the scope of the Project changes, either Consultant or City may request a review of the changes with an appropriate adjustment in compensation. 1.5 Consultant will provide monthly status updates (project progress or delays) in the format requested by the City with each monthly invoice. 1.6 For design services, Consultant agrees to render the professional services necessary for the advancement of the Project through Final Completion of the Construction Contract. Consultant acknowledges and accepts its responsibilities, as defined and described in City’s General Conditions for Construction Contracts, excerpt attached as Exhibit D. 1.6.1 The Consultant agrees to serve as the City’s Designer as defined in the General Conditions and will consult and advise the City on matters related to the Consultant’s Scope of Services during the performance of the Consultant’s services. 1.6.2 The Consultant agrees to prepare plans, specification, bid and contract documents and to analyze bids and evaluate the documents submitted by bidders. 1.6.3 The Consultant agrees to assist the City in evaluating the qualifications of the prospective contractors, subcontractors and suppliers. 1.7 For projects that require subsurface utility investigation: 1.7.1 The Consultant agrees to prepare and submit to the City prior to the 60% submittal a signed and sealed report identifying all utilities within the project area at the Quality Level specified in Exhibit A.It is assumed that all utilities will be identified using Quality Level A exploratory excavation unless stated otherwise. 1.7.2 Utilities that should be identified include but are not limited to utilities owned by the City, local franchises, electric companies, communication companies, private pipeline companies and 3rd party owners/operators. Contract for Professional Services Page 3 of 11 1.8 For project with potential utility conflicts: 1.8.1 The Consultant agrees to coordinate the verification and resolution of all potential utility conflicts. 1.8.2 The Consultant agrees to prepare and submit a monthly Utility Coordination Matrix to the City. 1.9 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule and budget as defined in Exhibit A, including completing the work in phases defined therein. ARTICLE II – QUALITY CONTROL 2.1 The Consultant agrees to perform quality assurance-quality control/constructability reviews (QCP Review). The City reserves the right to retain a separate consultant to perform additional QCP services for the City. 2.2 The Consultant will perform QCP Reviews at intervals during the Project to ensure deliverables satisfy applicable industry quality standards and meet the requirements of the Project scope. Based on the findings of the QCP Review, the Consultant must reconcile the Project Scope and the Opinion of Probable Cost (OPC), as needed. 2.3 Final construction documents that do not meet City standards in effect at the time of the execution of this Agreement may be rejected. If final construction documents are found not to be in compliance with this Agreement, Consultant will not be compensated for having to resubmit documents. ARTICLE III – COMPENSATION 3.1 The Compensation for all services (Basic and Additional) included in this Agreement and in the Scope of Services for this Agreement shall not exceed $195,630. 3.2 The Consultant’s fee will be on a lump sum or time and materials (T&M) basis as detailed in Exhibit A and will be full and total compensation for all services and for all expenses incurred in performing these services. Consultant shall submit a Rate Schedule with their proposal. 3.3 The Consultant agrees to complete the Scope of Services in accordance with the approved project schedule and budget as defined in Exhibit A, including completing the work in phases defined therein. 3.4 The Director of Engineering Services may request the Consultant to undertake additional services or tasks provided that no increase in fee is required. Services or tasks requiring an increase of fee will be mutually agreed and evidenced in writing as an amendment to this contract. Consultant shall notify the City within three (3) days of notice if tasks requested requires an additional fee. 3.5 Monthly invoices will be submitted in accordance with the Payment Request as shown in Exhibit B. Each invoice will include the Consultant’s estimate of the proportion of the contracted services completed at the time of billing. For work performed on a T&M Basis, the invoice shall include documentation that shows who worked on the Project, the number of hours that each individual worked, the applicable rates from the Rate Schedule and any reimbursable expenses associated with the work. City will make prompt monthly payments in response to Consultant’s monthly invoices in compliance with the Texas Prompt Payment Act. 3.6 Principals may only bill at the agreed hourly rate for Principals (as defined in the Rate Schedule) when acting in that capacity. Principals acting in the capacity of staff must bill at applicable staff rates. 3.7 Consultant certifies that title to all services covered by a Payment Request shall pass to City no later than the time of payment. Consultant further certifies that, upon submittal of a Payment Request, all services for which Payment Requests have been previously issued and payments received from City shall, to the best of Consultant’s knowledge, information and belief, be free and clear of liens, claims, security interests or encumbrances in favor of Contract for Professional Services Page 4 of 11 Consultant or other persons or entities making a claim by reason of having provided labor or services relating to this Agreement. CONSULTANT SHALL INDEMNIFY AND HOLD CITY HARMLESS FROM ANY LIENS, CLAIMS, SECURITY INTERESTS OR ENCUMBRANCES FILED BY ANYONE CLAIMING BY, THROUGH OR UNDER THE ITEMS COVERED BY PAYMENTS MADE BY CITY TO CONSULTANT. 3.8 The final payment due hereunder shall not be paid until all reports, data and documents have been submitted, received, accepted and approved by City. Final billing shall indicate “Final Bill – no additional compensation is due to Consultant.” 3.9 City may withhold compensation to such extent as may be necessary, in City’s opinion, to protect City from damage or loss for which Consultant is responsible, because of: 3.9.1 delays in the performance of Consultant’s work; 3.9.2 failure of Consultant to make payments to subconsultants or vendors for labor, materials or equipment; 3.9.3 damage to City; or 3.9.4 persistent failure by Consultant to carry out the performance of its services in accordance with this Agreement. 3.10 When the above reasons for withholding are removed or remedied by Consultant, compensation of the amount withheld shall be made within 30 days. City shall not be deemed in default by reason of withholding compensation as provided under this Agreement. 3.11 In the event of any dispute(s) between the Parties regarding the amount properly compensable for any phase or as final compensation or regarding any amount that may be withheld by City, Consultant shall be required to make a claim pursuant to and in accordance with the terms of this Agreement and follow the procedures provided herein for the resolution of such dispute. In the event Consultant does not initiate and follow the claims procedures as required by the terms of this Agreement, any such claim shall be waived. 3.12 Request of final compensation by Consultant shall constitute a waiver of claims except those previously made in writing and identified by Consultant as unsettled at the time of final Payment Request. 3.13 All funding obligations of the City under this Agreement are subject to the appropriation of funds in its annual budget. The City may direct the Consultant to suspend work pending receipt and appropriation of funds. The right to suspend work under this provision does not relieve the City of its obligation to make payments in accordance with section 3.5 above for services provided up to the date of suspension. ARTICLE IV – TIME AND PERIOD OF SERVICE 4.1 This Agreement shall be effective upon the signature of the City Manager or designee (Effective Date). 4.2 This service shall be for a period of ____ years beginning on the Effective Date. The Agreement may be renewed for up to _____ one-year renewal options upon mutual agreement of the parties to be evidenced in writing prior to the expiration date of the prior term. Any renewals shall be at the same terms and conditions, plus any approved changes. 4.3 The Consultant agrees to begin work on those authorized Services for this contract upon receipt of the Notice to Proceed from the Contracts and Procurement Department. Work will not begin on any phase or any Additional Services until requested in writing by the Consultant and written authorization is provided by the Director of Engineering Services. Contract for Professional Services Page 5 of 11 4.4 Time is of the essence for this Agreement. Consultant shall perform and complete its obligations under this Agreement in a prompt and continuous manner so as to not delay the W ork for the Project, in accordance with the schedules approved by City. The Consultant and City are aware that many factors may affect the Consultant’s ability to complete the services to be provided under this agreement. The Consultant must notify the City within ten business days of becoming aware of a factor that may affect the Consultant’s ability to complete the services hereunder. 4.5 City shall perform its obligations of review and approval in a prompt and continuous manner so as to not delay the project. 4.6 This Agreement shall remain in force for a period which may reasonably be required for completion of the Project, including any extra work and any required extensions thereto, unless terminated as provided for in this Agreement. For construction design services, “completion of the Project” refers to acceptance by the City of the construction phase of the Project, i.e., Final Completion. ARTICLE V – OPINIONS OF COST 5.1 The Opinion of Probable Cost (OPC) is computed by the Consultant and includes the total cost for construction of the Project. 5.2 The OPC does not include the cost of the land, rights-of-way or other costs which are the responsibility of the City. 5.3 Since Consultant has no control over a construction contractor’s cost of labor, materials or equipment, or over the contractor’s methods of determining prices, or over competitive bidding or market conditions, Consultant’s opinions of probable Project Cost or Construction Cost provided herein are to be made on the basis of Consultant’s experience and qualifications and represent Consultant’s best judgment as a design professional familiar with the construction industry, but Consultant cannot and does not guarantee proposals, bids or the construction cost shall not vary from the OPC prepared by Consultant. ARTICLE VI – INSURANCE REQUIREMENTS 6.1 Consultant must not commence work under this Agreement until all insurance required has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 6.2 Insurance Requirements are shown in EXHIBIT C. ARTICLE VII – INDEMNIFICATION Consultant shall fully indemnify and hold harmless the City of Corpus Christi and its officials, officers, agents, employees, excluding the engineer or architect or that person’s agent, employee or subconsultant, over which the City exercises control (“Indemnitee”) from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and court costs, to the extent that the damage is caused by or results from an act of negligence, intentional tort, intellectual property infringement or failure to pay a subcontractor or supplier committed by Consultant or its agent, Consultant under contract or another entity over which Consultant exercises control while in the exercise of rights or performance of the duties under this agreement. This indemnification does not apply to any liability resulting from the negligent acts or omissions of the City or its employees, to the extent of such negligence. Consultant shall defend Indemnitee, with counsel satisfactory to the City Attorney, from and against any and all claims, damages, liabilities or costs, including reasonable attorney fees and Contract for Professional Services Page 6 of 11 court costs, if the claim is not based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee. If a claim is based wholly or partly on the negligence of, fault of or breach of contract by Indemnitee, the Consultant shall reimburse the City’s reasonable attorney’s fees in proportion to the Consultant’s liability. Consultant must advise City in writing within 24 hours of any claim or demand against City or Consultant known to Consultant related to or arising out of Consultant’s activities under this Agreement. ARTICLE VIII – TERMINATION OF AGREEMENT 8.1 By Consultant: 8.1.1 The City reserves the right to suspend this Agreement at the end of any phase for the convenience of the City by issuing a written and signed Notice of Suspension. The Consultant may terminate this Agreement for convenience in the event such suspension extends for a period beyond 120 calendar days by delivering a Notice of Termination to the City. 8.1.2 The Consultant must follow the Termination Procedure outlined in this Agreement. 8.2 By City: 8.2.1 The City may terminate this agreement for convenience upon seven days written notice to the Consultant at the address of record. 8.2.2 The City may terminate this agreement for cause upon ten days written notice to the Consultant. If Consultant begins, within three days of receipt of such notice, to correct its failure and proceeds to diligently cure such failure within the ten days, the agreement will not terminate. If the Consultant again fails to perform under this agreement, the City may terminate the agreement for cause upon seven days written notice to the Consultant with no additional cure period. If the City terminates for cause, the City may reject any and all proposals submitted by Consultant for up to two years. 8.3 Termination Procedure 8.3.1 Upon receipt of a Notice of Termination and prior to the effective date of termination, unless the notice otherwise directs or Consultant takes action to cure a failure to perform under the cure period, Consultant shall immediately begin the phase-out and discontinuance of all services in connection with the performance of this Agreement. Within 30 calendar days after receipt of the Notice of Termination, unless Consultant has successfully cured a failure to perform, Consultant shall submit a statement showing in detail the services performed under this Agreement prior to the effective date of termination. City retains the option to grant an extension to the time period for submittal of such statement. 8.3.2 Consultant shall submit all completed and/or partially completed work under this Agreement, including but not limited to specifications, designs, plans and exhibits. 8.3.3 Upon receipt of documents described in the Termination Procedure and absent any reason why City may be compelled to withhold fees, Consultant will be compensated for its services based upon a Time & Materials calculation or Consultant and City's estimate of the proportion of the total services actually completed at the time of termination. There will be no compensation for anticipated profits on services not completed. 8.3.4 Consultant acknowledges that City is a public entity and has a duty to document the expenditure of public funds. The failure of Consultant to comply with the submittal of the statement and documents, as Contract for Professional Services Page 7 of 11 required above, shall constitute a waiver by Consultant of any and all rights or claims to payment for services performed under this Agreement. ARTICLE IX – RIGHT OF REVIEW AND AUDIT 9.1 Consultant grants City, or its designees, the right to audit, examine or inspect, at City’s election, all of Consultant’s records relating to the performance of the Work under this Agreement, during the term of this Agreement and retention period herein. The audit, examination or inspection may be performed by a City designee, which may include its internal auditors or an outside representative engaged by City. Consultant agrees to retain its records for a minimum of four (4) years following termination of the Agreement, unless there is an ongoing dispute under this Agreement, then such retention period shall extend until final resolution of the dispute. 9.2 Consultant’s records include any and all information, materials and data of every kind and character generated as a result of and relevant to the Work under this Agreement (Consultant’s Records). Examples include billings, books, general ledger, cost ledgers, invoices, production sheets, documents, correspondence, meeting notes, subscriptions, agreements, purchase orders, leases, contracts, commitments, arrangements, notes, daily diaries, reports, drawings, receipts, vouchers, memoranda, time sheets, payroll records, policies, procedures, and any and all other agreements, sources of information and matters that may, in City’s and Consultant’s reasonable judgment, have any bearing on or pertain to any matters, rights, duties or obligations under or covered by any Agreement Documents. 9.3 City agrees that it shall exercise the right to audit, examine or inspect Consultant’s Records only during Consultant’s regular business hours. Consultant agrees to allow City’s designee access to all of Consultant’s Records, Consultant’s facilities and Consultant’s current employees, deemed necessary by City or its designee(s), to perform such audit, inspection or examination. Consultant also agrees to provide adequate and appropriate work space necessary to City or its designees to conduct such audits, inspections or examinations. 9.4 Consultant shall include this audit clause in any subcontractor, supplier or vendor contract. ARTICLE X – OWNER REMEDIES 10.1 The City and Consultant agree that in the event the City suffers actual damages, the City may elect to pursue its actual damages and any other remedy allowed by law. This includes but is not limited to: 10.1.1 Failure of the Consultant to make adequate progress and endanger timely and successful completion of the Project, which includes failure of subconsultants to meet contractual obligations; 10.1.2 Failure of the Consultant to design in compliance with the laws of the City, State and/or federal governments, such that subsequent compliance costs exceed expenditures that would have been involved had services been properly executed by the Consultant. 10.1.3 Losses are incurred because of errors and/or omissions in the design, working drawings, specifications or other documents prepared by the Consultant to the extent that the financial losses are greater than the City would have originally paid had there not been errors and/or omissions in the documents. 10.2 When the City incurs non-value added work costs for change orders due to design errors and/or omissions, the City will send the Consultant a letter that includes: (1) Summary of facts with supporting documentation; (2) Instructions for Consultant to revise design documents, if appropriate, at Consultant’s expense; (3) Calculation of non-value added work costs incurred by the City; and (4) Deadline for Consultant’s response. Contract for Professional Services Page 8 of 11 10.3 The Consultant may be required to revise bid documents and re-advertise the Project at the Consultant’s sole cost if, in the City’s judgment, the Consultant generates excessive addenda, either in terms of the nature of the revision or the actual number of changes due to the Consultant’s errors or omissions. 10.4 The City may withhold or nullify the whole or part of any payment as detailed in Article III. ARTICLE XI – CONSULTANT REMEDIES 11.1 If Consultant is delayed due to uncontrollable circumstances, such as strikes, riots, acts of God, national emergency, acts of the public enemy, governmental restrictions, laws or regulations or any other causes beyond Consultant’s and City’s reasonable control, an extension of the Project schedule in an amount equal to the time lost due to such delay shall be Consultant’s sole and exclusive remedy. The revised schedule should be approved in writing with a documented reason for granting the extension. 11.2 The City agrees that the Consultant is not responsible for damages arising from any cause beyond Consultant’s reasonable control. 11.3 If Consultant requests a remedy for a condition not specified above, Consultant must file a Claim as provided in this Agreement. ARTICLE XII – CLAIMS AND DISPUTE RESOLUTION 12.1 Filing of Claims 12.1.1 Claims arising from the circumstances identified in this Agreement or other occurrences or events, shall be made by Written Notice delivered by the party making the Claim to the other party within twenty-one (21) calendar days after the start of the occurrence or event giving rise to the Claim and stating the general nature of the Claim. 12.1.2 Every Claim of Consultant, whether for additional compensation, additional time or other relief, shall be signed and sworn to by a person authorized to bind the Consultant by his/her signature, verifying the truth and accuracy of the Claim. 12.1.3 The responsibility to substantiate a claim rests with the party making the Claim. 12.1.4 Within thirty (30) calendar days of receipt of notice and supporting documentation, City will meet to discuss the request, after which an offer of settlement or a notification of no settlement offer will be sent to Consultant. If Consultant is not satisfied with the proposal presented, Consultant will have thirty (30) calendar days in which to (i) submit additional supporting data requested by the City, (ii) modify the initial request for remedy or (iii) request Mediation. 12.1.5 Pending final resolution of a claim, except as otherwise agreed in writing, Consultant shall proceed diligently with performance of the Agreement, and City shall continue to make payments in accordance with this Agreement. 12.2 Mediation 12.2.1 All negotiations pursuant to this clause are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. 12.2.2 Before invoking mediation, the Parties agree that they shall first try to resolve any dispute arising out of or related to this Agreement through discussions directly between those senior management representatives within their respective organizations who have overall managerial responsibility for similar projects. This step shall be a condition precedent to the use of mediation. If the parties’ senior Contract for Professional Services Page 9 of 11 management representatives cannot resolve the dispute within thirty (30) calendar days after a Party delivers a written notice of such dispute, then the Parties shall proceed with the mediation process contained herein. 12.2.2.1 In the event that City or Consultant shall contend that the other has committed a material breach of this Agreement, the Party alleging such breach shall, as a condition precedent to filing any lawsuit, request mediation of the dispute. 12.2.2.2 Request for mediation shall be in writing, and shall request that the mediation commence no less than thirty (30) or more than ninety (90) calendar days following the date of the request, except upon agreement of both parties. 12.2.2.3 In the event City and Consultant are unable to agree to a date for the mediation or to the identity of the mediator or mediators within thirty (30) calendar days of the request for mediation, all conditions precedent in this Article shall be deemed to have occurred. 12.2.2.4 The parties shall share the mediator’s fee. Venue for mediation shall be Nueces County, Texas. Any agreement reached in mediation shall be enforceable as a settlement agreement in any court having jurisdiction thereof. No provision of this Agreement shall waive any immunity or defense. No provision of this Agreement is a consent to suit. 12.3 In calculating the amount of any Claim or any measure of damages for breach of contract, the following standards shall apply both to claims by Consultant and to claims by City: 12.3.1 In no event shall either Party be liable, whether in contract or tort or otherwise, to the other Party for loss of profits, delay damages or for any special incidental or consequential loss or damage of any nature arising at any time or from any cause whatsoever; 12.3.2 Damages are limited to extra costs specifically shown to have been directly caused by a proven wrong for which the other Party is claimed to be responsible. 12.4 In case of litigation between the parties, Consultant and City agree that neither party shall be responsible for payment of attorney’s fees pursuant to any law or other provision for payment of attorneys’ fees. Both Parties expressly waive any claim to attorney’s fees should litigation result from any dispute between the parties to this Agreement. 12.5 In case of litigation between the parties, Consultant and City agree that they have knowingly waived and do hereby waive the right to trial by jury and have instead agreed, in the event of any litigation arising out of or connected to this Agreement, to proceed with a trial before the court, unless both parties subsequently agree otherwise in writing. 12.6 No Waiver of Governmental Immunity. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO WAIVE CITY’S GOVERNMENTAL IMMUNITY FROM LAWSUIT, WHICH IMMUNITY IS EXPRESSLY RETAINED TO THE EXTENT IT IS NOT CLEARLY AND UNAMBIGUOUSLY WAIVED BY STATE LAW. ARTICLE XIII – MISCELLANEOUS PROVISIONS 13.1 Assignability. Neither party will assign, transfer or delegate any of its obligations or duties under this Agreement contract to any other person and/or party without the prior written consent of the other party, except for routine duties delegated to personnel of the Consultant staff. This includes subcontracts entered into for services under this Agreement. If the Consultant is a partnership or joint venture, then in the event of the termination of the partnership or joint venture, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the Consultant fee may be assigned in advance of receipt by the Consultant without written consent of the City. Contract for Professional Services Page 10 of 11 The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 13.2 Ownership of Documents. Consultant agrees that upon payment, City shall exclusively own any and all information in whatsoever form and character produced and/or maintained in accordance with, pursuant to or as a result of this Agreement, including contract documents (plans and specifications), drawings and submittal data. Consultant may make a copy for its files. Any reuse by the City, without specific written verification or adaptation by Consultant, shall be a City’s sole risk and without liability or legal exposure to Consultant. The City agrees that any modification of the plans will be evidenced on the plans and be signed and sealed by a licensed professional prior to re-use of modified plans. 13.3 Standard of Care. Services provided by Consultant under this Agreement shall be performed with the professional skill and care ordinarily provided by competent licensed professionals practicing under the same or similar circumstances and professional license; and performed as expeditiously as is prudent considering the ordinary professional skill and care of a competent engineer or architect. 13.4 Licensing. Consultant shall be represented by personnel with appropriate licensure, registration and/or certification(s) at meetings of any official nature concerning the Project, including scope meetings, review meetings, pre-bid meetings and preconstruction meetings. 13.5 Independent Contractor. The relationship between the City and Consultant under this Agreement shall be that of independent contractor. City may explain to Consultant the City’s goals and objectives in regard to the services to be performed by Consultant, but the City shall not direct Consultant on how or in what manner these goals and objectives are to be met. 13.6 Entire Agreement. This Agreement represents the entire and integrated Agreement between City and Consultant and supersedes all prior negotiations, representations or agreements, either oral or written. This Agreement may be amended only by written instrument signed by both the City and Consultant. 13.7 No Third Party Beneficiaries. Nothing in this Agreement can be construed to create rights in any entity other than the City and Consultant. Neither the City nor Consultant intends to create third party beneficiaries by entering into this Agreement. 13.8 Disclosure of Interest. Consultant agrees to comply with City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form. 13.9 Certificate of Interested Parties. For contracts greater than $50,000, Consultant agrees to comply with Texas Government Code section 2252.908 and complete Form 1295 Certificate of Interested Parties as part of this agreement. Form 1295 must be electronically filed with the Texas Ethics Commission at https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm. The form must then be printed, signed and filed with the City. For more information, please review the Texas Ethics Commission Rules at https://www.ethics.state.tx.us/legal/ch46.html. 13.10 Conflict of Interest. Consultant agrees, in compliance with Chapter 176 of the Texas Local Government Code, to complete and file Form CIQ with the City Secretary’s Office. For more information and to determine if you need to file a Form CIQ, please review the information on the City Secretary’s website at http://www.cctexas.com/government/city-secretary/conflict-disclosure/index. 13.11 Title VI Assurance. The Consultant shall prohibit discrimination in employment based upon race, color, religion, national origin, gender, disability or age. 13.12 Controlling Law. This Agreement is governed by the laws of the State of Texas without regard to its conflicts of laws. Venue for legal proceedings lies exclusively in Nueces County, Texas. Cases must be filed and tried in Nueces County and cannot be removed from Nueces County. EXHIBIT A Page 1 of 5 EXHIBIT A Page 2 of 5 EXHIBIT A Page 3 of 5 EXHIBIT A Page 4 of 5 EXHIBIT A Page 5 of 5 Sample form for: Payment Request AE Contract Revised 02/01/17 COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date 01/01/2017 Total Current Previous Total Remaining Percent Basic Services:Contract Amd No. 1 Amd No. 2 Contract Invoice Invoice Invoice Balance Complete Preliminary Phase $1,000.00 $0.00 $0.00 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 100.0% Design Phase $2,000.00 $1,000.00 $0.00 $3,000.00 $1,000.00 $500.00 $1,500.00 $1,500.00 50.0% Bid Phase $500.00 $0.00 $250.00 $750.00 $0.00 $0.00 $0.00 $750.00 0.0% Construction Phase $2,500.00 $0.00 $1,000.00 $3,500.00 $0.00 $0.00 $0.00 $3,500.00 0.0% Subtotal Basic Services $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services: Permitting $2,000.00 $0.00 $0.00 $2,000.00 $500.00 $0.00 $500.00 $1,500.00 25.0% Warranty Phase $0.00 $1,120.00 $0.00 $1,120.00 $0.00 $0.00 $0.00 $1,120.00 0.0% Inspection $0.00 $0.00 $1,627.00 $1,627.00 $0.00 $0.00 $0.00 $1,627.00 0.0% Platting Survey TBD TBD TBD TBD TBD TBD TBD TBD TBD O & M Manuals TBD TBD TBD TBD TBD TBD TBD TBD TBD SCADA TBD TBD TBD TBD TBD TBD TBD TBD TBD Subtotal Additional Services $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Summary of Fees: Basic Services Fees $6,000.00 $1,000.00 $1,250.00 $8,250.00 $1,000.00 $1,500.00 $2,500.00 $5,750.00 30.3% Additional Services Fees $2,000.00 $1,120.00 $1,627.00 $4,747.00 $500.00 $0.00 $500.00 $4,247.00 10.5% Total of Fees $8,000.00 $2,120.00 $2,877.00 $12,997.00 $1,500.00 $1,500.00 $3,000.00 $9,997.00 23.1% Notes: If needed, update this sample form based on the contract requirements. If applicable, refer to the contract for information on what to include with time and materials (T&M).Exhibit BPage 1 of 1 1 Rev 09/19 EXHIBIT C Insurance Requirements 1.1 Consultant must not commence work under this agreement until all required insurance has been obtained and such insurance has been approved by the City. Consultant must not allow any subcontractor to commence work until all similar insurance required of any subcontractor has been obtained. 1.2 Consultant must furnish to the Director of Contracts and Procurement with the signed agreement a copy of Certificates of Insurance (COI) with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with 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 $2,000,000 Aggregate AUTO LIABILITY (including) 1. Owned 2.Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit PROFESSIONAL LIABILITY (Errors and Omissions) $1,000,000 Per Claim If claims made policy, retro date must be prior to inception of agreement, have extended reporting period provisions 2 Rev 09/19 and identify any limitations regarding who is insured. 1.3 In the event of accidents of any kind related to this agreement, Consultant must furnish the City with copies of all reports of any accidents within 10 days of the accident. 1.4 Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- VII. Consultant is required to provide City with renewal Certificates. 1.5 In the event of a change in insurance coverage, Consultant shall be required to submit a copy of the replacement certificate of insurance to City at the address provided below within 10 business days of said change. Consultant shall pay any costs resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Contracts and Procurement P.O. Box 9277 Corpus Christi, TX 78469-9277 1.6 Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: 1.6.1 List the City and its officers, officials, employees 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 professional liability/Errors & Omissions policy; 1.6.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; 1.6.3 If the policy is cancelled, other than for nonpayment of premium, notice of such cancellation will be provided at least 30 days in advance of the cancellation effective date to the certificate holder; 1.6.4 If the policy is cancelled for nonpayment of premium, notice of such cancellation will be provided within 10 days of the cancellation effective date to the certificate holder. 1.7 Within five (5) calendar days of a suspension, cancellation or non-renewal of 3 Rev 09/19 Exhibit C coverage, Consultant shall notify City of such lapse in coverage and provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. 1.8 In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to withhold any payment(s) if any, which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. 1.9 Nothing herein contained shall be construed as limiting in any way the extent to which Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractor’s performance of the work covered under this agreement. 1.10 It is agreed that Consultant's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City of Corpus Christi for liability arising out of operations under this agreement. 1.11 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this agreement. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services Table of Contents Page Article 1 – Definitions and Terminology ....................................................................................................... 2 Article 2 – Preliminary Matters ..................................................................................................................... 8 Article 3 – Contract Documents: Intent, Requirements, Reuse ................................................................... 8 Article 4 – Commencement and Progress of the Work ................................................................................ 9 Article 5 – Availability of Lands; Subsurface, Physical and Hazardous Environmental Conditions .............. 9 Article 6 – Bonds and Insurance ................................................................................................................. 10 Article 7 – Contractor’s Responsibilities ..................................................................................................... 10 Article 8 – Other Work at the Site ............................................................................................................... 10 Article 9 – Owner’s and OPT’s Responsibilities ........................................................................................... 10 Article 10 – OAR’s and Designer’s Status During Construction .................................................................. 11 Article 11 – Amending the Contract Documents; Changes in the Work .................................................... 13 Article 12 – Change Management .............................................................................................................. 13 Article 13 – Claims ....................................................................................................................................... 14 Article 14 – Prevailing Wage Rate Requirements ....................................................................................... 16 Article 15 – Cost of the Work; Allowances; Unit Price Work ...................................................................... 16 Article 16 – Tests and Inspections; Correction, Removal, or Acceptance of Defective Work .................... 16 Article 17 – Payments to Contractor; Set-Offs; Completion; Correction Period ........................................ 16 Article 18 – Suspension of Work and Termination ..................................................................................... 16 Article 19 – Project Management ............................................................................................................... 16 Article 20 – Project Coordination ................................................................................................................ 16 Article 21 – Quality Management ............................................................................................................... 17 Article 22 – Final Resolution of Disputes .................................................................................................... 17 Article 23 – Minority/MBE/DBE Participation Policy .................................................................................. 17 Article 24 – Document Management .......................................................................................................... 17 Article 25 – Shop Drawings ......................................................................................................................... 17 Article 26 – Record Data ............................................................................................................................. 20 Article 27 – Construction Progress Schedule .............................................................................................. 21 Article 28 – Video and Photographic documentation ................................................................................ 21 Article 29 – Execution and Closeout ........................................................................................................... 21 Article 30 – Miscellaneous .......................................................................................................................... 22 Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 1 of 22 ARTICLE 1 – DEFINITIONS AND TERMINOLOGY 1.01 Defined Terms A.Terms with initial capital letters, including the term’s singular and plural forms, have the meanings indicated in this paragraph wherever used in the Bidding Requirements or Contract Documents. In addition to the terms specifically defined, terms with initial capital letters in the Contract Documents may include references to identified articles and paragraphs, and the titles of other documents or forms. 1.Addenda - Documents issued prior to the receipt of Bids which clarify or modify the Bidding Requirements or the proposed Contract Documents. 2.Agreement - The document executed between Owner and Contractor covering the Work. 3.Alternative Dispute Resolution - The process by which a disputed Claim may be settled as an alternative to litigation, if Owner and Contractor cannot reach an agreement between themselves. 4.Application for Payment - The forms used by Contractor to request payments from Owner and the supporting documentation required by the Contract Documents. 5.Award Date – The date the City Council of the City of Corpus Christi (City) authorizes the City Manager or designee to execute the Contract on behalf of the City. 6.Bid - The documents submitted by a Bidder to establish the proposed Contract Price and Contract Times and provide other information and certifications as required by the Bidding Requirements. 7.Bidding Documents - The Bidding Requirements, the proposed Contract Documents, and Addenda. 8.Bidder - An individual or entity that submits a Bid to Owner. 9.Bidding Requirements - The Invitation for Bids, Instructions to Bidders, Bid Security, Bid Form and attachments, and required certifications. 10.Bid Security - The financial security in the form of a bid bond provided by Bidder at the time the Bid is submitted and held by Owner until the Agreement is executed and the evidence of insurance and Bonds required by the Contract Documents are provided. A cashier’s check, certified check, money order or bank draft from any State or National Bank will also be acceptable. 11.Bonds - Performance Bond, Payment Bond, Maintenance Bond, and other Surety instruments executed by Surety. When in singular form, refers to individual instrument. 12.Change Order - A document issued on or after the Effective Date of the Contract and signed by Owner and Contractor which modifies the Work, Contract Price, Contract Times, or terms and conditions of the Contract. 13.Change Proposal - A document submitted by Contractor in accordance with the requirements of the Contract Documents: a.Requesting an adjustment in Contract Price or Contract Times; Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 2 of 22 b. Contesting an initial decision concerning the requirements of the Contract Documents or the acceptability of Work under the Contract Documents; c. Challenging a set-off against payment due; or d. Seeking a Modification with respect to the terms of the Contract. 14. City Engineer - The Corpus Christi City Engineer and/or his designated representative as identified at the preconstruction conference or in the Notice to Proceed. 15. Claim - A demand or assertion by Owner or Contractor submitted in accordance with the requirements of the Contract Documents. A demand for money or services by an entity other than the Owner or Contractor is not a Claim. 16. Constituent of Concern - Asbestos, petroleum, radioactive materials, polychlorinated biphenyls (PCBs), hazardous wastes, and substances, products, wastes, or other materials that are or become listed, regulated, or addressed pursuant to: a. The Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§9601 et seq. (“CERCLA”); b. The Hazardous Materials Transportation Act, 49 U.S.C. §§5101 et seq.; c. The Resource Conservation and Recovery Act, 42 U.S.C. §§6901 et seq. (“RCRA”); d. The Toxic Substances Control Act, 15 U.S.C. §§2601 et seq.; e. The Clean Water Act, 33 U.S.C. §§1251 et seq.; f. The Clean Air Act, 42 U.S.C. §§7401 et seq.; or g. Any other Laws or Regulations regulating, relating to, or imposing liability or standards of conduct concerning hazardous, toxic, or dangerous waste, substance, or material. 17. Contract - The entire integrated set of documents concerning the Work and describing the relationship between the Owner and Contractor. 18. Contract Amendment - A document issued on or after the Effective Date of the Contract and signed by Owner and Contractor which: a. Authorizes new phases of the Work and establishes the Contract Price, Contract Times, or terms and conditions of the Contract for the new phase of Work; or b. Modifies the terms and conditions of the Contract, but does not make changes in the Work. 19. Contract Documents - Those items designated as Contract Documents in the Agreement. 20. Contract Price - The monetary amount stated in the Agreement and as adjusted by Modifications, and increases or decreases in unit price quantities, if any, that Owner has agreed to pay Contractor for completion of the Work in accordance with the Contract Documents. 21. Contract Times - The number of days or the dates by which Contractor must: a. Achieve specified Milestones; Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 3 of 22 b. Achieve Substantial Completion; and c. Complete the Work. 22. Contractor - The individual or entity with which Owner has contracted for performance of the Work. 23. Contractor’s Team - Contractor and Subcontractors, Suppliers, individuals, or entities directly or indirectly employed or retained by them to perform part of the Work or anyone for whose acts they may be liable. 24. Cost of the Work - The sum of costs incurred for the proper performance of the Work as allowed by Article 15. 25. Defective - When applied to Work, refers to Work that is unsatisfactory, faulty, or deficient in that it: a. Does not conform to the Contract Documents; b. Does not meet the requirements of applicable inspections, reference standards, tests, or approvals referred to in the Contract Documents; or c. Has been damaged or stolen prior to OAR’s recommendation of final payment unless responsibility for the protection of the Work has been assumed by Owner at Substantial Completion in accordance with Paragraphs 17.12 or 17.13. 26. Designer - The individuals or entity named as Designer in the Agreement and the subconsultants, individuals, or entities directly or indirectly employed or retained by Designer to provide design or other technical services to the Owner. Designer has responsibility for engineering or architectural design and technical issues related to the Contract Documents. Designers are Licensed Professional Engineers, Registered Architects or Registered Landscape Architects qualified to practice their profession in the State of Texas. 27. Drawings - The part of the Contract that graphically shows the scope, extent, and character of the Work. Shop Drawings and other Contractor documents are not Drawings. 28. Effective Date of the Contract - The date indicated in the Agreement on which the City Manager or designee has signed the Contract. 29. Field Order - A document issued by OAR or Designer requiring changes in the Work that do not change the Contract Price or the Contract Times. 30. Hazardous Environmental Condition - The presence of Constituents of Concern at the Site in quantities or circumstances that may present a danger to persons or property exposed to Constituents of Concern. The presence of Constituents of Concern at the Site necessary for the execution of the Work or to be incorporated in the Work is not a Hazardous Environmental Condition provided these Constituents of Concern are controlled and contained pursuant to industry practices, Laws and Regulations, and the requirements of the Contract. 31. Indemnified Costs - All costs, losses, damages, and legal or other dispute resolution costs resulting from claims or demands against Owner’s Indemnitees. These costs include fees for engineers, architects, attorneys, and other professionals. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 4 of 22 32. Laws and Regulations; Laws or Regulations - Applicable laws, statutes, rules, regulations, ordinances, codes, and orders of governmental bodies, agencies, authorities, and courts having jurisdiction over the Project. 33. Liens - Charges, security interests, or encumbrances upon Contract related funds, real property, or personal property. 34. Milestone - A principal event in the performance of the Work that Contractor is required by Contract to complete by a specified date or within a specified period of time. 35. Modification - Change made to the Contract Documents by one of the following methods: a. Contract Amendment; b. Change Order; c. Field Order; or d. Work Change Directive. 36. Notice of Award - The notice of Owner’s intent to enter into a contract with the Selected Bidder. 37. Notice to Proceed - A notice to Contractor of the Contract Times and the date Work is to begin. 38. Owner - The City of Corpus Christi (City), a Texas home-rule municipal corporation and political subdivision organized under the laws of the State of Texas, acting by and through its duly authorized City Manager and his designee, the City Engineer (the Director of Engineering Services), and the City’s officers, employees, agents, or representatives, authorized to administer design and construction of the Project. 39. Owner’s Authorized Representative or OAR - The individual or entity named as OAR in the Agreement and the consultants, subconsultants, individuals, or entities directly or indirectly employed or retained by them to provide construction management services to the Owner. The OAR may be an employee of the Owner. 40. Owner’s Indemnitees - Each member of the OPT and their officers, directors, members, partners, employees, agents, consultants, and subcontractors. 41. Owner’s Project Team or OPT - The Owner, Owner’s Authorized Representative, Resident Project Representative, Designer, and the consultants, subconsultants, individuals, or entities directly or indirectly employed or retained by them to provide services to the Owner. 42. Partial Occupancy or Use - Use by Owner of a substantially completed part of the Work for the purpose for which it is intended (or a related purpose) prior to Substantial Completion of all the Work. 43. Progress Schedule - A schedule prepared and maintained by Contractor, describing the sequence and duration of the activities comprising the Contractor’s plan to accomplish the Work within the Contract Times. The Progress Schedule must be a Critical Path Method (CPM) Schedule. 44. Project - The total undertaking to be accomplished for Owner under the Contract Documents. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 5 of 22 45. Resident Project Representative or RPR - The authorized representative of OPT assigned to assist OAR at the Site. As used herein, the term Resident Project Representative includes assistants and field staff of the OAR. 46. Samples - Physical examples of materials, equipment, or workmanship representing some portion of the Work that are used to establish the standards for that portion of the Work. 47. Schedule of Documents - A schedule of required documents, prepared, and maintained by Contractor. 48. Schedule of Values - A schedule, prepared and maintained by Contractor, allocating portions of the Contract Price to various portions of the Work and used as the basis for Contractor’s Applications for Payment. 49. Selected Bidder - The Bidder to which Owner intends to award the Contract. 50. Shop Drawings - All drawings, diagrams, illustrations, schedules, and other data or information that are specifically prepared or assembled and submitted by Contractor to illustrate some portion of the Work. Shop Drawings, whether approved or not, are not Drawings and are not Contract Documents. 51. Site - Lands or areas indicated in the Contract Documents as being furnished by Owner upon which the Work is to be performed. The Site includes rights-of-way, easements, and other lands furnished by Owner which are designated for use by the Contractor. 52. Specifications - The part of the Contract that describes the requirements for materials, equipment, systems, standards, and workmanship as applied to the Work, and certain administrative requirements and procedural matters applicable to the Work. 53. Subcontractor - An individual or entity having a direct contract with Contractor or with other Subcontractors or Suppliers for the performance of a part of the Work. 54. Substantial Completion - The point where the Work or a specified part of the Work is sufficiently complete to be used for its intended purpose in accordance with the Contract Documents. 55. Supplementary Conditions - The part of the Contract that amends or supplements the General Conditions. 56. Supplier - A manufacturer, fabricator, supplier, distributor, materialman, or vendor having a direct contract with Contractor or with Subcontractors or other Suppliers to furnish materials or equipment to be incorporated in the Work. 57. Technical Data - Those items expressly identified as Technical Data in the Supplementary Conditions with respect to either: a. Subsurface conditions at the Site; b. Physical conditions relating to existing surface or subsurface structures at the Site, except Underground Facilities; or c. Hazardous Environmental Conditions at the Site. 58. Underground Facilities - All underground pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks, tunnels, other similar facilities or appurtenances, and encasements containing these facilities which are used to convey electricity, gases, Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 6 of 22 steam, liquid petroleum products, telephone or other communications, fiber optic transmissions, cable television, water, wastewater, storm water, other liquids or chemicals, or traffic or other control systems. 59. Unit Price Work - Work to be paid for on the basis of unit prices. 60. Work - The construction of the Project or its component parts as required by the Contract Documents. 61. Work Change Directive - A directive issued to Contractor on or after the Effective Date of the Contract ordering an addition, deletion, or revision in the Work. The Work Change Directive serves as a memorandum of understanding regarding the directive until a Change Order can be issued. 1.02 Terminology A. The words and terms discussed in this Paragraph 1.02 are not defined, but when used in the Bidding Requirements or Contract Documents, have the indicated meaning. B. It is understood that the cost for performing Work is included in the Contract Price and no additional compensation is to be paid by Owner unless specifically stated otherwise in the Contract Documents. Expressions including or similar to “at no additional cost to Owner,” “at Contractor’s expense,” or similar words mean that the Contractor is to perform or provide specified operation of Work without an increase in the Contract Price. C. The terms “day” or “calendar day” mean a calendar day of 24 hours measured from midnight to the next midnight. D. The meaning and intent of certain terms or adjectives are described as follows: 1. The terms “as allowed,” “as approved,” “as ordered,” “as directed,” or similar terms in the Contract Documents indicate an exercise of professional judgment by the OPT. 2. Adjectives including or similar to “reasonable,” “suitable,” “acceptable,” “proper,” “satisfactory,” or similar adjectives are used to describe a determination of OPT regarding the Work. 3. Any exercise of professional judgment by the OPT will be made solely to evaluate the Work for general compliance with the Contract Documents unless there is a specific statement in the Contract Documents indicating otherwise. 4. The use of these or similar terms or adjectives does not assign a duty or give OPT authority to supervise or direct the performance of the Work, or assign a duty or give authority to the OPT to undertake responsibilities contrary to the provisions of Articles 9 or 10 or other provisions of the Contract Documents. E. The use of the words “furnish,” “install,” “perform,” and “provide” have the following meanings when used in connection with services, materials, or equipment: 1. Furnish means to supply and deliver the specified services, materials, or equipment to the Site or other specified location ready for use or installation. 2. Install means to complete construction or assembly of the specified services, materials, or equipment so they are ready for their intended use. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 7 of 22 3. Perform or provide means to furnish and install specified services, materials, or equipment, complete and ready for their intended use. 4. Perform or provide the specified services, materials, or equipment complete and ready for intended use if the Contract Documents require specific services, materials, or equipment, but do not expressly use the words “furnish,” “install,” “perform,” or “provide.” F. Contract Documents are written in modified brief style: 1. Requirements apply to all Work of the same kind, class, and type even though the word “all” is not stated. 2. Simple imperative sentence structure is used which places a verb as the first word in the sentence. It is understood that the words “furnish,” “install,” “perform,” “provide,” or similar words include the meaning of the phrase “The Contractor shall...” before these words. 3. Unless specifically stated that action is to be taken by the OPT or others, it is understood that the action described is a requirement of the Contractor. G. Words or phrases that have a well-known technical or construction industry or trade meaning are used in the Contract Documents in accordance with this recognized meaning unless stated otherwise in the Contract Documents. H. Written documents are required where reference is made to notices, reports, approvals, consents, documents, statements, instructions, opinions or other types of communications required by the Contract Documents. Approval and consent documents must be received by Contractor prior to the action or decision for which approval or consent is given. These may be made in printed or electronic format through the OPT’s project management information system or other electronic media as required by the Contract Documents or approved by the OAR. I. Giving notice as required by the Contract Documents may be by printed or electronic media using a method that requires acknowledgment of the receipt of that notice. ARTICLE 2 – PRELIMINARY MATTERS ARTICLE 3 – CONTRACT DOCUMENTS: INTENT, REQUIREMENTS, REUSE 3.01 Intent B. Provide equipment that is functionally complete as described in the Contract Documents. The Drawings and Specifications do not indicate or describe all of the Work required to complete the installation of products purchased by the Owner or Contractor. Additional details required for the correct installation of selected products are to be provided by the Contractor and coordinated with the Designer through the OAR. 3.02 Reference Standards Comply with applicable construction industry standards, whether referenced or not. 1. Standards referenced in the Contract Documents govern over standards not referenced but recognized as applicable in the construction industry. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 8 of 22 2. Comply with the requirements of the Contract Documents if they produce a higher quality of Work than the applicable construction industry standards. 3. Designer determines whether a code or standard is applicable, which of several are applicable, or if the Contract Documents produce a higher quality of Work. 3.03 Reporting and Resolving Discrepancies 3.04 Interpretation of the Contract Documents Submit questions regarding the design of the Project described in the Contract Documents to the OAR immediately after those questions arise. OAR is to request an interpretation of the Contract Documents from the Designer. Designer is to respond to these questions by providing an interpretation of the Contract Documents. OAR will coordinate the response of the OPT to Contractor. C. OPT may initiate a Modification to the Contract Documents through the OAR if a response to the question indicates that a change in the Contract Documents is required. Contractor may appeal Designer’s or OAR’s interpretation by submitting a Change Proposal. ARTICLE 4 – COMMENCEMENT AND PROGRESS OF THE WORK ARTICLE 5 – AVAILABILITY OF LANDS; SUBSURFACE AND PHYSICAL CONDITIONS; HAZARDOUS ENVIRONMENTAL CONDITIONS 5.01 Availability of Lands 5.02 Use of Site and Other Areas 5.03 Subsurface and Physical Conditions 5.04 Differing Subsurface or Physical Conditions OAR is to notify the OPT after receiving notice of a differing subsurface or physical condition from the Contractor. Designer is to: 1. Promptly review the subsurface or physical condition; 2. Determine the necessity of OPT’s obtaining additional exploration or tests with respect the subsurface or physical condition; 3. Determine if the subsurface or physical condition falls within one or more of the differing Site condition categories in Paragraph 5.04.A; 4. Prepare recommendations to OPT regarding the Contractor’s resumption of Work in connection with the subsurface or physical condition in question; 5. Determine the need for changes in the Drawings or Specifications; and 6. Advise OPT of Designer’s findings, conclusions, and recommendations. C. OAR is to issue a statement to Contractor regarding the subsurface or physical condition in question and recommend action as appropriate after review of Designer’s findings, conclusions, and recommendations. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 9 of 22 5.05 Underground Facilities The Designer is to take the following action after receiving notice from the OAR: 1. Promptly review the Underground Facility and conclude whether the Underground Facility was not shown or indicated in the Contract Documents, or was not shown or indicated with reasonable accuracy; 2. Prepare recommendations to OPT regarding the Contractor’s resumption of Work in connection with this Underground Facility; 3. Determine the extent to which a change is required in the Drawings or Specifications to document the consequences of the existence or location of the Underground Facility; and 4. Advise OAR of Designer’s findings, conclusions, and recommendations and provide revised Drawings and Specifications if required. D. OAR is to issue a statement to Contractor regarding the Underground Facility in question and recommend action as appropriate after review of Designer’s findings, conclusions, and recommendations. ARTICLE 6 – BONDS AND INSURANCE ARTICLE 7 – CONTRACTOR’S RESPONSIBILITIES ARTICLE 8 – OTHER WORK AT THE SITE ARTICLE 9 – OWNER’S AND OPT’S RESPONSIBILITIES 9.01 Communications to Contractor A. OPT issues communications to Contractor through OAR except as otherwise provided in the Contract Documents. 9.02 Replacement of Owner’s Project Team Members A. Owner may replace members of the OPT at its discretion. 9.03 Furnish Data A. OPT is to furnish the data required of OPT under the Contract Documents. 9.04 Pay When Due 9.05 Lands and Easements; Reports and Tests A. Owner’s duties with respect to providing lands and easements are described in Paragraph 5.01. OPT will make copies of reports of explorations and tests of subsurface conditions and drawings of physical conditions relating to existing surface or subsurface structures at the Site available to Contractor in accordance with Paragraph 5.03. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 10 of 22 9.06 Insurance 9.07 Modifications 9.08 Inspections, Tests, and Approvals A. OPT’s responsibility with respect to certain inspections, tests, and approvals are described in Paragraph 16.02. 9.09 Limitations on OPT’s Responsibilities A. The OPT does not supervise, direct, or have control or authority over, and is not responsible for Contractor’s means, methods, techniques, sequences, or procedures of construction, or related safety precautions and programs, or for failure of Contractor to comply with Laws and Regulations applicable to the performance of the Work. OPT is not responsible for Contractor’s failure to perform the Work in accordance with the Contract Documents. 9.10 Undisclosed Hazardous Environmental Condition A. OPT’s responsibility for undisclosed Hazardous Environmental Conditions is described in Paragraph 5.06. 9.11 Compliance with Safety Program A. Contractor is to inform the OPT of its safety programs and OPT is to comply with the specific applicable requirements of this program. ARTICLE 10 – OAR’S AND DESIGNER’S STATUS DURING CONSTRUCTION 10.01 Owner’s Representative A. OAR is Owner’s representative. The duties and responsibilities and the limitations of authority of OAR as Owner’s representative are described in the Contract Documents. 10.02 Visits to Site A. Designer is to make periodic visits to the Site to observe the progress and quality of the Work. Designer is to determine, in general, if the Work is proceeding in accordance with the Contract Documents based on observations made during these visits. Designer is not required to make exhaustive or continuous inspections to check the quality or quantity of the Work. Designer is to inform the OPT of issues or concerns and OAR is to work with Contractor to address these issues or concerns. Designer’s visits and observations are subject to the limitations on Designer’s authority and responsibility described in Paragraphs 9.09 and 10.07. B. OAR is to observe the Work to check the quality and quantity of Work, implement Owner’s quality assurance program, and administer the Contract as Owner’s representative as described in the Contract Documents. OAR’s visits and observations are subject to the limitations on OAR’s authority and responsibility described in Paragraphs 9.09 and 10.07. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 11 of 22 10.03 Resident Project Representatives A. Resident Project Representatives assist OAR in observing the progress and quality of the Work at the Site. The limitations on Resident Project Representatives’ authority and responsibility are described in Paragraphs 9.09 and 10.07. 10.04 Rejecting Defective Work A. OPT has the authority to reject Work in accordance with Article 16. OAR is to issue a Defective Work Notice to Contractor and document when Defective Work has been corrected or accepted in accordance with Article 16. 10.05 Shop Drawings, Modifications and Payments A. Designer’s authority related to Shop Drawings and Samples are described in the Contract Documents. B. Designer’s authority related to design calculations and design drawings submitted in response to a delegation of professional design services are described in Paragraph 7.15. C. OAR and Designer’s authority related to Modifications is described in Article 11. D. OAR’s authority related to Applications for Payment is described in Articles 15 and 17. 10.06 Decisions on Requirements of Contract Documents and Acceptability of Work A. OAR is to render decisions regarding non-technical or contractual / administrative requirements of the Contract Documents and will coordinate the response of the OPT to Contractor. B. Designer is to render decisions regarding the conformance of the Work to the requirements of the Contract Documents. Designer will render a decision to either correct the Defective Work, or accept the Work under the provisions of Paragraph 16.04, if Work does not conform to the Contract Documents. OAR will coordinate the response of the OPT to Contractor. C. OAR will issue a Request for a Change Proposal if a Modification is required. OAR will provide documentation for changes related to the non-technical or contractual / administrative requirements of the Contract Documents. Designer will provide documentation if design related changes are required. D. Contractor may appeal Designer’s decision by submitting a Change Proposal if Contractor does not agree with the Designer’s decision. 10.07 Limitations on OAR’s and Designer’s Authority and Responsibilities A. OPT is not responsible for the acts or omissions of Contractor’s Team. No actions or failure to act, or decisions made in good faith to exercise or not exercise the authority or responsibility available under the Contract Documents creates a duty in contract, tort, or otherwise of the OPT to the Contractor or members of the Contractor’s Team. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 12 of 22 ARTICLE 11 – AMENDING THE CONTRACT DOCUMENTS; CHANGES IN THE WORK ARTICLE 12 – CHANGE MANAGEMENT 12.01 Requests for Change Proposal A. Designer will initiate Modifications by issuing a Request for a Change Proposal (RCP). 1. Designer will prepare a description of proposed Modifications. 2. Designer will issue the Request for a Change Proposal form to Contractor. A number will be assigned to the Request for a Change Proposal when issued. 3. Return a Change Proposal in accordance with Paragraph 12.02 to the Designer for evaluation by the OPT. 12.02 Change Proposals A. Submit a Change Proposal (CP) to the Designer for Contractor initiated changes in the Contract Documents or in response to a Request for Change Proposal. 1. Use the Change Proposal form provided. 2. Assign a number to the Change Proposal when issued. 3. Include with the Change Proposal: a. A complete description of the proposed Modification if Contractor initiated or proposed changes to the OPT’s description of the proposed Modification. b. The reason the Modification is requested, if not in response to a Request for a Change Proposal. c. A detailed breakdown of the cost of the change if the Modification requires a change in Contract Price. The itemized breakdown is to include: 1) List of materials and equipment to be installed; 2) Man hours for labor by classification; 3) Equipment used in construction; 4) Consumable supplies, fuels, and materials; 5) Royalties and patent fees; 6) Bonds and insurance; 7) Overhead and profit; 8) Field office costs; 9) Home office cost; and 10) Other items of cost. d. Provide the level of detail outlined in the paragraph above for each Subcontractor or Supplier actually performing the Work if Work is to be provided by a Subcontractor or Supplier. Indicate appropriate Contractor mark-ups for Work Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 13 of 22 provided through Subcontractors and Suppliers. Provide the level of detail outline in the paragraph above for self-performed Work. e. Submit Change Proposals that comply with Article 15 for Cost of Work. f. Provide a revised schedule. Show the effect of the change on the Project Schedule and the Contract Times. B. Submit a Change Proposal to the Designer to request a Field Order. C. A Change Proposal is required for all substitutions or deviations from the Contract Documents. D. Request changes to products in accordance with Article 25. 12.03 Designer Will Evaluate Request for Modification A. Designer will issue a Modification per Article 11 if the Change Proposal is acceptable to the Owner. Designer will issue a Change Order or Contract Amendment for any changes in Contract Price or Contract Times. 1. Change Orders and Contract Amendments will be sent to the Contractor for execution with a copy to the Owner recommending approval. A Work Change Directive may be issued if Work needs to progress before the Change Order or Contract Amendment can be authorized by the Owner. 2. Work Change Directives, Change Orders, and Contract Amendments can only be approved by the Owner. a. Work performed on the Change Proposal prior to receiving a Work Change Directive or approval of the Change Order or Contract Amendment is performed at the Contractor’s risk. b. No payment will be made for Work on Change Orders or Contract Amendments until approved by the Owner. B. The Contractor may be informed that the Request for a Change Proposal is not approved and construction is to proceed in accordance with the Contract Documents. ARTICLE 13 – CLAIMS 13.01 Claims 13.02 Claims Process A. Claims must be initiated by written notice. Notice must conspicuously state that it is a notice of a Claim in the subject line or first sentence. Notice must also list the date of first occurrence of the claimed event. B. Claims by Contractor must be in writing and delivered to the Owner, Designer and the OAR within 7 days: 1. After the start of the event giving rise to the Claim; or 2. After a final decision on a Change Proposal has been made. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 14 of 22 C. Claims by Contractor that are not received within the time period provided by section 13.02(B) are waived. Owner may choose to deny such Claims without a formal review. Any Claims by Contractor that are not brought within 90 days following the termination of the Contract are waived and shall be automatically deemed denied. D. Claims by Owner must be submitted by written notice to Contractor. E. The responsibility to substantiate a Claim rests with the entity making the Claim. Claims must contain sufficient detail to allow the other party to fully review the Claim. 1. Claims seeking an adjustment of Contract Price must include the Contractor’s job cost report. Provide additional documentation as requested by OAR. 2. Claims seeking an adjustment of Contract Time must include native schedule files in Primavera or MS Project digital format. Provide additional documentation as requested by OAR. F. Contractor must certify that the Claim is made in good faith, that the supporting data is accurate and complete, and that to the best of Contractor’s knowledge and belief, the relief requested accurately reflects the full compensation to which Contractor is entitled. G. Claims by Contractor against Owner and Claims by Owner against Contractor, including those alleging an error or omission by Designer but excluding those arising under Section 7.12, shall be referred initially to Designer for consideration and recommendation to Owner. H. Designer may review a Claim by Contractor within 30 days of receipt of the Claim and take one or more of the following actions: 1. Request additional supporting data from the party who made the Claim; 2. Issue a recommendation; 3. Suggest a compromise; or 4. Advise the parties that Designer is not able to make a recommendation due to insufficient information or a conflict of interest. I. If the Designer does not take any action, the claim shall be deemed denied. J. The Contractor and the Owner shall seek to resolve the Claim through the exchange of information and direct negotiations. If no agreement is reached within 90 days, the Claim shall be deemed denied. The Owner and Contractor may extend the time for resolving the Claim by mutual agreement. Notify OAR of any actions taken on a Claim. K. Owner and Contractor may mutually agree to mediate the underlying dispute at any time after a recommendation is issued by the Designer. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 15 of 22 ARTICLE 14 – PREVAILING WAGE RATE REQUIREMENTS ARTICLE 15 – COST OF THE WORK; ALLOWANCES; UNIT PRICE WORK ARTICLE 16 – TESTS AND INSPECTIONS; CORRECTION, REMOVAL, OR ACCEPTANCE OF DEFECTIVE WORK ARTICLE 17 – PAYMENTS TO CONTRACTOR; SET-OFFS; COMPLETION; CORRECTION PERIOD ARTICLE 18 – SUSPENSION OF WORK AND TERMINATION ARTICLE 19 – PROJECT MANAGEMENT ARTICLE 20 – PROJECT COORDINATION 20.01 Work Included 20.02 Document Submittal 20.03 Communication During Project A. The OAR is to be the first point of contact for all parties on matters concerning this Project. B. The Designer will coordinate correspondence concerning: 1. Documents, including Applications for Payment. 2. Clarification and interpretation of the Contract Documents. 3. Contract Modifications. 4. Observation of Work and testing. 5. Claims. 20.04 Requests for Information A. Submit Request for Information (RFI) to the Designer to obtain additional information or clarification of the Contract Documents. 1. Submit a separate RFI for each item on the form provided. 2. Attach adequate information to permit a written response without further clarification. Designer will return requests that do not have adequate information to the Contractor for additional information. Contractor is responsible for all delays resulting from multiple document submittals due to inadequate information. 3. A response will be made when adequate information is provided. Response will be made on the RFI form or in attached information. B. Response to an RFI is given to provide additional information, interpretation, or clarification of the requirements of the Contract Documents, and does not modify the Contract Documents. C. Designer will initiate a Request for a Change Proposal (RCP) per Article 12 if the RFI indicates that a Contract Modification is required. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 16 of 22 ARTICLE 21 – QUALITY MANAGEMENT ARTICLE 22 – FINAL RESOLUTION OF DISPUTES ARTICLE 23 – MINORITY/MBE/DBE PARTICIPATION POLICY ARTICLE 24 – DOCUMENT MANAGEMENT ARTICLE 25 – SHOP DRAWINGS 25.01 Work Included A. Shop Drawings are required for those products that cannot adequately be described in the Contract Documents to allow fabrication, erection, or installation of the product without additional detailed information from the Supplier. B. Submit Shop Drawings as required by the Contract Documents and as reasonably requested by the OPT to: 1. Record the products incorporated into the Project for the Owner; 2. Provide detailed information for the products proposed for the Project regarding their fabrication, installation, commissioning, and testing; and 3. Allow the Designer to advise the Owner if products proposed for the Project by the Contractor conform, in general, to the design concepts of the Contract Documents. 25.02 Quality Assurance 25.03 Contractor’s Responsibilities 25.04 Shop Drawing Requirements A. Provide adequate information in Shop Drawings and Samples so Designer can: 1. Assist the Owner in selecting colors, textures, or other aesthetic features. 2. Compare the proposed features of the product with the specified features and advise Owner that the product does, in general, conform to the Contract Documents. 3. Compare the performance features of the proposed product with those specified and advise the Owner that the product does, in general, conform to the performance criteria specified in the Contract Documents. 4. Review required certifications, guarantees, warranties, and service agreements for compliance with the Contract Documents. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 17 of 22 25.05 Special Certifications and Reports 25.06 Warranties and Guarantees 25.07 Shop Drawing Submittal Procedures 25.08 Sample and Mockup Submittal Procedures 25.09 Requests for Deviation 25.10 Designer Responsibilities A. Shop Drawings will be received by the Designer. Designer will log the documents and review per this Article for general conformance with the Contract Documents. 1. Designer’s review and approval will be only to determine if the products described in the Shop Drawing or Sample will, after installation or incorporation into the Work, conform to the information given in the Contract Documents and be compatible with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. 2. Designer’s review and approval will not extend to means, methods, techniques, sequences, or procedures of construction or to safety precautions or programs incident thereto. 3. Designer’s review and approval of a separate item as such will not indicate approval of the assembly in which the item functions. B. Comments will be made on items called to the attention of the Designer for review and comment. Any marks made by the Designer do not constitute a blanket review of the document submittal or relieve the Contractor from responsibility for errors or deviations from the Contract requirements. 1. Designer will respond to Contractor’s markups by either making markups directly in the Shop Drawings file using the color green or by attaching a Document Review Comments form with review comments. 2. Shop Drawings that are reviewed will be returned with one or more of the following status designations: a. Approved: Shop Drawing is found to be acceptable as submitted. b. Approved as Noted: Shop Drawing is Approved so long as corrections or notations made by Designer are incorporated into the Show Drawing. c. Not Approved: Shop Drawing or products described are not acceptable. 3. Shop Drawing will also be designated for one of the following actions: a. Final distribution: Shop Drawing is acceptable without further action and has been filed as a record document. b. Shop Drawing not required: A Shop Drawing was not required by the Contract Documents. Resubmit the document per Article 26. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 18 of 22 c. Cancelled: This action indicates that for some reason, the Shop Drawing is to be removed from consideration and all efforts regarding the processing of that document are to cease. d. Revise and resubmit: Shop Drawing has deviations from the Contract Documents, significant errors, or is inadequate and must be revised and resubmitted for subsequent review. e. Resubmit with corrections made: Shop Drawing is “Approved as Noted,” but has significant markups. Make correction and notations to provide a revised document with markup incorporated into the original document so that no markups are required. f. Returned without review due to excessive deficiencies: Document does not meet the requirement of the Specifications for presentation or content to the point where continuing to review the document would be counterproductive to the review process or clearly does not meet the requirements of the Contract Documents. Revise the Shop Drawing to comply with the requirements of this Section and resubmit. g. Actions a through c will close out the Shop Drawing review process and no further action is required as a Shop Drawing. Actions d through f require follow up action to close out the review process. 4. Drawings with a significant or substantial number of markings by the Contractor may be marked “Approved as Noted” and “Resubmit with corrections made.” These drawings are to be revised to provide a clean record of the Shop Drawing. Proceed with ordering products as the documents are revised. 5. Dimensions or other data that does not appear to conform to the Contract Documents will be marked as “At Variance With” (AVW) the Contract Documents or other information provided. The Contractor is to make revisions as appropriate to comply with the Contract Documents. C. Bring deviations to the Shop Drawings to the attention of the Designer for approval by using the Shop Drawing Deviation Request form. Use a single line for each requested deviation so the Status and Action for each deviation can be determined for that requested deviation. If approval or rejection of a requested deviation will impact other requested deviations, then all related deviations should be included in that requested deviation line so the status and action can be determined on the requested deviation as a whole. D. Requested deviations will be reviewed as possible Modification to the Contract Documents. 1. A Requested deviation will be rejected as “Not Approved” if the requested deviation is unacceptable. Contractor is to revise and resubmit the Shop Drawing with corrections for approval. 2. A Field Order will be issued by the Designer for deviations approved by the Designer if the requested deviation is acceptable and if the requested deviation will not result in a change in Contract Price or Contract Times. Requested deviations from the Contract Documents may only be approved by Field Order. 3. A requested deviation will be rejected if the requested deviation is acceptable but the requested deviation will or should result in a change in Contract Price or Contract Times. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 19 of 22 Submit any requested deviation that requires a change in Contract Price or Contract Times as a Change Proposal for approval prior to resubmitting the Shop Drawing. E. Contractor is to resubmit the Shop Drawing until it is acceptable and marked Approved or Approved as Noted and is assigned an action per Paragraph 25.10.B that indicates that the Shop Drawing process is closed. F. Information that is submitted as a Shop Drawings that should be submitted as Record Data or other type of document, or is not required may be returned without review, or may be deleted. No further action is required and the Shop Drawing process for this document will be closed. ARTICLE 26 – RECORD DATA 26.01 Work Included 26.02 Quality Assurance 26.03 Contractor’s Responsibilities 26.04 Record Data Requirements 26.05 Special Certifications and Reports 26.06 Warranties and Guarantees 26.07 Record Data Submittal Procedures 26.08 Designer’s Responsibilities A. Record Data will be received by the Designer, logged, and provided to Owner as the Project record. 1. Record Data may be reviewed to see that the information provided is adequate for the purpose intended. Record Data not meeting the requirements of Paragraph 26.02 may be rejected as unacceptable. 2. Record Data is not reviewed for compliance with the Contract Documents. Comments may be returned if deviations from the Contract Documents are noted during the cursory review performed to see that the information is adequate. 3. Contractor’s responsibility for full compliance with the Contract Documents is not relieved by the review of Record Data. Contract modifications can only be approved by a Modification. B. Designer may take the following action in processing Record Data: 1. File Record Data as received if the cursory review indicates that the document meets the requirements of Paragraph 26.02. Document will be given the status of “Filed as Received” and no further action is required on that Record Data. 2. Reject the Record Data for one of the following reasons: a. The document submittal requirements of the Contract Documents indicate that the document submitted as Record Data should have been submitted as a Shop Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 20 of 22 Drawing. The Record Data will be marked “Rejected” and “Submit Shop Drawing.” No further action is required on this document as Record Data and the Record Data process will be closed. Resubmit the document as a Shop Drawing per Article 25. b. The cursory review indicates that the document does not meet the requirements of Paragraph 26.02. The Record Data will be marked “Rejected” and “Revise and Resubmit.” Contractor is to resubmit the Record Data until it is acceptable and marked “Filed as Received.” When Record Data is filed, no further action is required and the Record Data process will be closed. c. The Record Data is not required by the Contract Documents nor is the Record Data applicable to the Project. The Record Data will be marked “Rejected” and “Cancel - Not Required.” No further action is required and the Record Data process will be closed. C. Contractor is to resubmit the Record Data until it is acceptable and marked “Filed as Received.” ARTICLE 27 – CONSTRUCTION PROGRESS SCHEDULE ARTICLE 28 – VIDEO AND PHOTOGRAPHIC DOCUMENTATION ARTICLE 29 – EXECUTION AND CLOSEOUT 29.01 Substantial Completion A. Notify the Designer that the Work or a designated portion of the Work is substantially complete per the General Conditions. Include a list of the items remaining to be completed or corrected before the Project will be considered to be complete. B. OPT will visit the Site to observe the Work within a reasonable time after notification is received to determine the status of the Project. C. Designer will notify the Contractor that the Work is either substantially complete or that additional Work must be performed before the Project will be considered substantially complete. 1. Designer will notify the Contractor of items that must be completed before the Project will be considered substantially complete. 2. Correct the noted deficiencies in the Work. 3. Notify the Designer when the items of Work in the Designer’s notice have been completed. 4. OPT will revisit the Site and repeat the process. 5. Designer will issue a Certificate of Substantial Completion to the Contractor when the OPT considers the Project to be substantially complete. The Certificate will include a tentative list of items to be corrected before Final Payment will be recommended. 6. Review the list and notify the Designer of any objections to items on the list within 10 days after receiving the Certificate of Substantial Completion. Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 21 of 22 29.02 Final Inspections A. Notify the Designer when: 1. Work has been completed in compliance with the Contract Documents; 2. Equipment and systems have been tested per Contract Documents and are fully operational; 3. Final Operations and Maintenance Manuals have been provided to the Owner and all operator training has been completed; 4. Specified spare parts and special tools have been provided; and 5. Work is complete and ready for final inspection. B. OPT will visit the Site to determine if the Project is complete and ready for Final Payment within a reasonable time after the notice is received. C. Designer will notify the Contractor that the Project is complete or will notify the Contractor that Work is Defective. D. Take immediate steps to correct Defective Work. Notify the Designer when Defective Work has corrected. OPT will visit the Site to determine if the Project is complete and the Work is acceptable. Designer will notify the Contractor that the Project is complete or will notify the Contractor that Work is Defective. E. Submit the Request for Final Payment with the closeout documents described in Paragraph 29.06 if notified that the Project is complete and the Work is acceptable. ARTICLE 30 – MISCELLANEOUS END OF SECTION Excerpt from FORM 00 72 00 GENERAL CONDITIONS for Construction Projects related to design services EXHIBIT D Page 22 of 22 DATE: December 31, 2019 TO: Peter Zanoni, City Manager FROM: Dan Grimsbo, Executive Director of Utilities dang@cctexas.com (361) 826-1718 CAPTION: Resolution identifying City matching funds of $7,600,000 from the Stormwater Capital Improvement Program (CIP) for the Texas General Land Office Community Development & Revitalization grant application for La Volla Creek drainage improvements. SUMMARY: This item follows a Resolution authorizing application to the General Land Office for the Community Development & Revitalization Grant Program that was previously approved by City Council. This Resolution identifies the source of matching funds required for the grant award as Stormwater CIP funds. BACKGROUND AND FINDINGS: On January 15, 2019, the City Council approved Resolution 031647 authorizing submittal of grant applications to the Texas General Land Office (GLO) for Community Development Block Grant Disaster Recovery (CDBG-DR) for post-Harvey disaster related recovery (DR-4332-2017). In December 2019, the City staff received “OK to Proceed” notification from GLO with the proposed project of constructing an approximately 1,146 acre-feet (373,400,000 gallons) detention pond near the confluence of La Volla Creek and Airport Tributary Number 1 (Los Robles Street). The proposed project with a preliminary cost estimate of $14.8 million will mitigate flooding in the La Volla Creek area. GLO will provide approximately $7.2 million grant funding to support the proposed project, and requested the City provide $7.6 million matching funds, with the project to be completed within two years after the grant award. It is anticipated GLO will award the $7.2 million grant in March 2020. The existing Stormwater CIP allocated a total $7.6 million budget, with $2.6 million for FY2020, $2.0 million FY2021, and $3.0 million FY2022 that can be used as the matching funds. ALTERNATIVES: Do not apply for grant. Authorize matching funds for the Texas General Land Office (GLO) Community Development & Revitalization application AGENDA MEMORANDUM Action Item for the City Council Meeting of January 28, 2020 FINANCIAL IMPACT: Capital improvement funding identified as a match for the GLO Community Development & Revitalization grant award is included in the Adopted FY2020 Capital Improvement Program. Funding Detail: Fund: Organization/Activity: Mission Element: Project # (CIP Only): Account: RECOMMENDATION: Staff recommends approval of the identification of $7.6 million in matching funds. LIST OF SUPPORTING DOCUMENTS: Resolution amendment 1 Resolution identifying City matching funds of $7,600,000 from the Stormwater Capital Improvement Program (CIP) for the Texas General Land Office Community Development & Revitalization grant application for La Volla Creek drainage improvements WHEREAS, by Resolution 031647 on January 15, 2019, the City Council authorized submission to the Texas General Land Office of a Community Development & Revitalization Hurricane Harvey Non-housing Application for the La Volla Creek project and the North Beach area drainage improvement projects; WHEREAS, the City is in the process of submitting the final La Volla Creek project application to the Texas General Land Office (“GLO”) for Community Development & Revitalization funds in the amount of $7,200,000; WHEREAS, in order to apply to the GLO for the funding for the La Volla Creek project, it is necessary to provide this Resolution regarding City matching funds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. City matching funds for the La Volla Creek project application in the amount of $7,600,000 are available in the adopted Stormwater Capital Improvement Plan, FY20 - 22, Project E10200 La Volla Creek Stormwater Modeling and Improvements and Project E12191 Channel Ditch Improvements. 2 PASSED AND APPROVED on the ______ day of _________, 20 20: 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 DATE: December 26, 2019 TO: Peter Zanoni, City Manager THRU: Steve Viera, Assistant City Manager SteveV@cctexas.com 361-826-3445 FROM: Dan Grimsbo, Executive Director of Water Utilities Department dang@cctexas.com (361) 826-1718 CAPTION: Resolution determining the public necessity and public use for the acquisition of fee simple property rights for a public improvement project known as the La Volla Creek Detention Pond Project; authorizing negotiation to acquire the property interests; authorizing condemnation by eminent domain to acquire fee simple property interests in approximately 132 acres of land owned by Lands Greenwood 2018 LLC located near the intersection of Saratoga Boulevard and Greenwood Drive. SUMMARY: This Resolution fulfills the legal requirement that a municipality, through its governing body, must first pass a vote through an ordinance or resolution which declares the public use and public necessity for a project. The passage of the Resolution by the governing body (City Council) determines that the acquisition of the property to construct the detention pond is necessary for the welfare of the City and its citizens. It also authorizes the City Manager to negotiate the acquisition of property rights and allows the City Manager to proceed with eminent domain proceedings if negotiations for parcel acquisitions should reach an impasse. BACKGROUND AND FINDINGS: The City of Corpus Christi has performed drainage studies to identify and better understand the causes of the flooding in the La Volla Creek watershed and the improvements that can be made for flood mitigation. In mid-2019, the City completed the La Volla Creek Excavation project, which provided incremental flooding relief. However, more systemic flood relief is still needed within the La Volla basin. A new study completed in February 2019 identified two drainage improvements projects which will provide a greater benefit to the flood mitigation efforts of La Volla Creek watershed: construction of a detention pond near the confluence of La Volla Creek and Airport Tributary Number 1 (Los Robles St.), and addition of four 12’ x 7’ box culverts at the intersection of North Padre Island Drive (SH 358) and Airport Tributary Number 1. Determining Public Necessity and authorizing acquisition of property by eminent domain for the La Volla Creek Detention Pond Project AGENDA MEMORANDUM Action Item for the City Council Meeting January 28, 2020 On January 15, 2019, the City Council approved a Resolution 031647 authorizing submittal of applications to the General Land Office for Community Development Block Grant Disaster Recovery (CDBG-DR) grant for post-Harvey disaster (DR-4332-2017) related recovery. In December 2019, the City staff received “OK to Proceed” from GLO with the proposed project of constructing an approximately 1,146 ac-ft of detention pond near the confluence of La Volla Creek and Airport Tributary Number 1 (Los Robles St.). This Resolution authorizes staff to negotiate to acquire the property located along the west bank of Airport Tributary No. 1 from La Volla Creek to nearly 1,000-feet south of Holly Road for constructing the detention pond. On September 1, 2011, Texas Senate Bill 18 (SB18) was enacted and requires all entities with eminent domain authority to follow certain procedures prior to initiating eminent domain proceedings under Section §21.012 of the Texas Property Code. These new procedures are more restrictive on the condemning authorities and stipulate certain requirements. One of them is the requirement of a vote on the use of eminent domain by a governmental entity under Section 2206.052 of the Texas Government Code. This resolution and the motion to adopt it are in a form required under Senate Bill 18 and other state law requirements. ALTERNATIVES: No alternatives are available for a governmental entity to be able to use of its power of eminent domain. Under Texas law, Council must adopt a resolution or ordinance at a public meeting by a record vote delegating its authority. FINANCIAL IMPACT: No financial impact to approving this resolution. RECOMMENDATION: Staff recommends approval of resolution to acquire property for the La Volla Creek Detention Pond project. LIST OF SUPPORTING DOCUMENTS: Resolution PowerPoint Presentation 1 Resolution determining the public necessity and public use for the acquisition of fee simple property rights for a public improvement project known as the La Volla Creek Detention Pond Project; authorizing negotiation to acquire the property interests; authorizing condemnation by eminent domain to acquire fee simple property interests in approximately 132 acres of land owned by Lands Greenwood 2018 LLC located near the intersection of Saratoga Boulevard and Greenwood Drive WHEREAS, the City of Corpus Christi is in need of fee simple property rights for the purposes of constructing public improvements for the La Volla Creek Detention Pond Project near the intersection of Saratoga Boulevard and Greenwood Drive; WHEREAS, in accordance with Section 2206.053 of the Texas Government Code, the City Council of the City of Corpus Christi, Texas, has met after a duly noticed meeting in compliance with the Texas Open Meetings Act, and by a record vote of the City Council, the City Council has determined to utilize its constitutional and statutory authority to exercise its authority for eminent domain in accordance with State law for construction of the La Volla Creek Detention Pond Project; and WHEREAS, the fee simple property rights are necessary to advance the public uses recited herein; and WHEREAS, based on an engineering study, the location of the detention pond and related public improvements optimizes the enhancement and adequacy of the municipal stormwater system. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. All of the Recitals are hereby found to be true and correct legislative and factual findings of the City of Corpus Christi Texas, and they are hereby approved and the Recitals are incorporated for all purposes as if they were fully recited herein. Section 2. That the City Council of the City of Corpus Christi, Texas, hereby finds and determines that a public use and necessity exists for the welfare of the City and its citizens to construct the La Volla Creek Detention Pond Project, and it is in the public interest to acquire the tract of approximately 132 acres of land owned by Lands Greenwood 2018 LLC near the intersection of Saratoga Boulevard and Greenwood Drive, as shown on the attached Exhibit A - Project Location Map, for such public use; that such acquisition is solely for the public use and necessity of acquiring this uniquely situated land for providing improvements to its municipal stormwater system. Section 3. That the City Manager or designee is hereby authorized on behalf of the City to negotiate to acquire the fee simple property interests for the La Volla Creek Detention Pond Project. If an agreement cannot be reached, then the City Manager is delegated the authority to direct the City Attorney, or designee, to file or cause to be filed against all interested parties of the property proceedings in eminent domain in accordance with State law to acquire the easements and fee simple interests in the property. If it is later determined that there are any errors in the descriptions contained 2 herein or if later surveys contain more accurate revised description, the City Attorney or designee is authorized to have such errors corrected or revisions made without the necessity of obtaining the City Council approval authorizing the condemnation of the corrected or revised properties. Section 4. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED on the ______ day of ______________, 2020 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 3 Exhibit A - Project Location Map N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES LAND ACQUISITION GREENWOOD 2018 LLC VICINITY MAP NOT TO SCALE LANDS GREENWOOD 2018 LLC (130.44 AC.) G R E E N W O O D W . W . T . P .GREENWOOD DR.SA R A T O G A B L V D . H O L L Y R D . DATE: January 8, 2020 TO: Peter Zanoni, City Manager FROM: Mike Markle, Chief of Police mikema@cctexas.com 886-2603 CAPTION: Ordinance renewing the Corpus Christi curfew for minors ordinances as mandated every three years per the Local Government Code. SUMMARY: The City of Corpus Christi curfew for minors ordinances must be renewed as mandated every three years per the Local Government Code. BACKGROUND AND FINDINGS: The City of Corpus Christi Code of Ordinance, Sections 33-40, 33-41, 33-42, and 33-43 enforce the curfew for minors. As per Section 370.002 of the Local Government Code a City is required to review its juvenile curfew order or ordinance before the third anniversary of its adoption and every third year thereafter. The Local Government Code mandates a municipality to 1. review the ordinances effects on the community and on problems the ordinance was intended to remedy, 2. hold public hearings on the need to continue the ordinance, and 3. determine whether to abolish, continue, or modify the ordinance. Failure to act in accordance with Section 370.002 shall cause the ordinance to expire. As per the current City Code of Ordinance Section 33-40(a)(2) a minor cannot appear in a public place between the hours of 11:00 P.M. and 6:00 A.M., or on a Monday, Tuesday, Wednesday, Thursday, or Friday between the hours of 9:00 A.M and 4:00 P.M. The curfew for minors ordinance was first implemented on February 16, 1999 and has been renewed every three years, with the last City Council review in February 2017. ALTERNATIVES: None Ordinance renewing the Corpus Christi curfew for minors ordinances as mandated every three years per the Local Government Code. AGENDA MEMORANDUM Public Hearing/First Reading Ordinance for the City Council Meeting of January 28, 2020 Second Reading Ordinance for the City Council Meeting of February 11, 2020 FISCAL IMPACT: There is no fiscal impact. RECOMMENDATION: Staff recommends renewing the ordinances. LIST OF SUPPORTING DOCUMENTS: Ordinance Ordinance renewing the Corpus Christi curfew for minors ordinances as mandated every three years per the Local Government Code. WHEREAS, the City Council of the City of Corpus Christi has previously adopted ordinances relating to curfews for minors and found at Sections 33 -40, 33-41, 33-42 and 33-43 of the Code of Ordinances, City of Corpus Christi; WHEREAS, as provided in Section 370.002 of the Texas Local Government Code, the City Council must review the curfew ordinance every three years to determine whether such ordinance should be abolished, continued or modified; WHEREAS, the subsequent third year anniversary date of adoption of the Juvenile Curfew ordinance is February 16, 2020; WHEREAS, the City Council has held public hearings thereon on January 28, 2020 and on February 11, 2020 and has reviewed the ordinances’ effects on the community and on problems the ordinances were intended to remedy, prior to the anniversary date; WHEREAS, Corpus Christi continues to experience juvenile violence, juvenile crime and juvenile gang activity, resulting in juveniles being involved in a range of unacceptable behavior to include vandalism, assaults, public consumption of alcoholic beverages, littering, illegal drug use and burglaries; WHEREAS, persons under 17 years of age are particularly susceptible, by their lack of maturity and experience, to participate in unlawful and potentially harmful activities and to become victims of other perpetrators of crime, and Corpus Christi has no more important resource than its young people; WHEREAS, a lack of parental supervision and guidance contributes to unacceptable levels of juvenile violence, crime and gang activity, and parental responsibility needs to be supported; WHEREAS, attendance at school by minors is vital to the community because it helps prepare children to be responsible citizens, and a curfew during school hours reduces distractions and alternatives which induce non-attendance and activities detrimental to minors and to the community, and compliments laws compelling school attendance and discourages violations of those laws; WHEREAS, it is necessary for the City of Corpus Christi to exercise its authority to protect minors from each other and from other persons, to promote parental control and responsibility for children, to supplement state truancy laws, to protect the general public, and to reduce juvenile criminal and delinquent activities; and WHEREAS, the City Council determines, pursuant to the above findings, that the public health and safety demands continuation of the o rdinance establishing a curfew for minors. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The curfew ordinances found at Sections 33-40, 33-41, 33-42, and 33-43 of the Corpus Christi Code of Ordinance is hereby continued. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of _________________, 2020, by the following vote: Joe McComb _____________ Greg Smith ______________ Rudy Garza _____________ Everett Roy ______________ Paulette Guajardo _____________ Roland Barrera ______________ Michael Hunter _____________ Gil Hernandez ______________ Ben Molina _____________ That the foregoing ordinance was read for the second t ime and passed finally on this the _______ day of _____________________, 2020, by the following vote: Joe McComb _____________ Greg Smith ______________ Rudy Garza _____________ Everett Roy ______________ Paulette Guajardo _____________ Roland Barrera ______________ Michael Hunter _____________ Gil Hernandez ______________ Ben Molina _____________ PASSED AND APPROVED, this the ______ day of ______________________, 20 20. ATTEST: __________________________________ _____________________________ Rebecca Huerta Joe McComb City Secretary Mayor DATE: January 3, 2020 TO: Peter Zanoni, City Manager FROM: Gabriel Hinojosa, P.E., Engineer V, Utilities Department Daniel McGinn, AICP Director of Planning and Environmental Services CAPTION: Ordinance amending the London Area Wastewater Master Plan, an element of the Comprehensive Plan, to provide wastewater service to approximately 144 acres of land located immediately west of the existing London Area Wastewater Master Plan Area; amending related elements of the Comprehensive Plan; and providing for publication. SUMMARY: MPM Development LP through Bass and Welsh Engineering has requested this amendment to initiate the utility planning work that would be necessary to develop a proposed 446-acre mixed- use development in the London area. The current London Area Wastewater Master Plan does not include approximately 144-acres of this planned development. Amending the plan would allow the entire project to be served by wastewater. Staff and Planning Commission recommend approval. BACKGROUND AND FINDINGS: The adopted wastewater master plan (Ordinance 031426) was approved by City Council on May 8th, 2018 and covers approximately 300 acres of the proposed project boundary. On December 10th, 2019 City Council approved the annexation of the King’s Landing Development Area. The King’s Landing Development Area represents the 446-acre mixed-use development referenced above. The applicant is seeking this amendment to increase the boundary to the west so an additional 144 acres can be added to the basin covering the entire project. At full buildout, MPM Development plans to create 1,446 single-family lots on 363.1 acres of the subject property. The remaining 83.3 acres are proposed for commercial uses (73.3 acres) and a church (10 acres). Wastewater Master Plan amendment adding approximately 144 acres into the existing London Area Wastewater Master Plan Basin AGENDA MEMORANDUM Public Hearing/First Reading for the City Council Meeting January 28, 2020 Second Reading Ordinance for the City Council Meeting February 11, 2020 This amendment to the London Area Wastewater Master Plan was brought before the Planning Commission on December 18th of 2019. Staff recommended approval based on the below analysis. An 18-inch gravity line will handle a maximum flow of 1,750 gallons per minute (GPM) at 0.12% slope and this is what is currently under construction. Based on what staff has been provided by the applicant, the development of the West sub-basin, including the additional 144 acres requested in this amendment, will generate a peak flow of 1,630 GPM. This peak flow is well within the capacity of the 18” line currently being constructed. This amendment will increase the service boundary of the lift station from 1,420 acres to 1,560 acres. Minor amendments are proposed as follows:  Adjust the boundaries of the lift station service area to include an additional 144 acres  Create a new sub-basin to the north with an additional gravity line to connect to the lift station ALTERNATIVES: No other alternatives were considered. FISCAL IMPACT: There is no financial impact associated with this item. RECOMMENDATION: Staff and Planning Commission recommend approval. LIST OF SUPPORTING DOCUMENTS:  Ordinance with Proposed Master Plan Exhibit  Applicant’s Request and Technical Memorandum  PowerPoint Ordinance amending the London Area Wastewater Master Plan, an element of the Comprehensive Plan, upon application by development group MPM Development LP, to provide wastewater service to approximately 144 acres of land located immediately west of the existing London Area Wastewater Master Plan Area; amending related elements of the Comprehensive Plan; and providing for severance and publication. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the adoption of the London Area Wastewater Master Plan, an element of the Comprehensive Plan of the City of Corpus Christi; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, December 12th, 2019, during a meeting of the Planning Commission, and on Tuesday, January 28th, 2020, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that amendment of the London Area Wastewater Master Plan would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCI L OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the London Area Wastewater Master Plan (a part of the Comprehensive Plan of the City of Corpus Christi, Texas) is amended to increase the boundary to the west by 144 acres, to add a 8” Gravity Main running parallel to the existing 16” Force Main, and to increase in diameter other Gravity Mains to accommodate the new land and anticipated development as shown in Exhibit "A", attached to this ordinance and incorporated by reference. SECTION 2. That to the extent that the amendments made by this Ordinance represent a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the amendments made by this Ordinance. SECTION 3. That the Comprehensive Plan of the City of Corpus Christi, Texas, as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remains in full force and effect. SECTION 4. That any ordinance or part of any ordinance in conflict with this ordinance is expressly repealed by this ordinance. SECTION 5. The City Council intends that every section, paragraph, subdivision, clause, phrase, word or provision hereof shall be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance. SECTION 6. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2020, 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 _______________, 2020, 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 20. ATTEST: ________________________________ _________________________ Rebecca Huerta Joe McComb City Secretary Mayor EXHIBIT A NMW:sab October 11, 2019 18068-WWMP-LTR.doc To: Gabriel Hinojosa, P.E. Subject: King’s Landing Master Wastewater Plan Amendment Requested Amendment - This is to request an amendment in the London Area Wastewater Master Plan as associated with the subject site. This amendment will provide for adding about 140 acres to said master plan service area, a portion of the subject site. This amendment request provides an evaluation of the capacity of the 18” gravity main (18” GM) as shown in exhibit attached as we discussed. Said 18” GM main extends from a point near the lift station (LS1 as shown in said exhibit) thru the proposed London Town Subdivision and stubbing into the east boundary of the subject site. Said 18” GM is deep enough to serve the subject site. 18” GM Service Areas – Said 18” GM serves the land west of CR 33 plus about 29 acres at the south side of said 18” GM at CR 33. The flow from LISD land as shown in said exhibit will not be considered in evaluating the capacity of the 18” GM as peak flow from LISD occurs during business hours whereas peak flow from other areas occurs during non-business hours. It is assumed that the land on the east side of County Road 33 and north side of the 18” gravity main will drain directly to the lift station (not thru the 18” GM). Population of subject site - There are 1,445 lots in the total subdivision less 4 commercial lots = 1,441 residential lots. The population of the residential lots is estimated to be 1,441 lots x 3 persons per lot = 4,323 persons. The 4 commercial lots total 78 acres. With regard to the commercial lots, assume 15 acres are apartments at 21 units per acre = 315 units. At 2.5 persons per unit, the apartments produce 788 persons. The remaining commercial = 78 acres – 15 acres = 63 acres produces 630 persons at 10 persons per acre. Thus, the estimated population of the subject site is 4,323 + 788 + 630 = 5,741 persons. Population of London Town - The London Town Subdivision is estimated to have 561 lots and based on 3 persons per lot, a population of 1,683 persons is produced. Population of Camp Tract – The Camp Tract has a net of 123 acres of which produces 492 lots at 4 lots per acre and at 3 persons per lot, a population of 1,476 persons. Population of 29 acres on the east side of County Road 33 and south side of the 18” GM at 4 lots per acre produces 116 lots and at 3 persons per lot produces 348 persons. Population Sum - A total of 5741 + 1683 + 1476 + 348 = 9,248 persons is produced for flow into the 18” GM at CR 33. Flow in 18” GM - Using the Babbitt Formula (5/population in thousands to 0.2 power), a peaking factor of 3.2 is produced. 9,248 persons x 80 gallons pers person per day x 3.2 produces 2.36 MGD. The infiltration inflow from 429 + 118 + 123 + 29 = 699 acres, at 400 gal/ac/day produces 0.28 MGD, thus the total flow into the 18” is 2.64 MGD. This is for that portion of the 18” GM east of County Road 33 which will carry the flow from the Camp Tract also. This produces a hydraulic grade requirement of 0.15% between County Road 33 and the 24” pipe near the lift station. This would result in a rise of 0.38’ in the hydraulic grade of the 18” at CR 33 with the 18” GM constructed to a slope of 0.12%. This figure is negligible; thus, I request and recommend the Master Plan change to allow the flow from all of the subject site into said 18” GM. Nixon M. Welsh, P.E. City Council Presentation January 28, 2020 Amendments to the Wastewater Master Plan For the London Area 1 Location Map -King’s Landing -Annexation -Applicant Requested modification to plan. Proposed Service Area Planning Commission & Staff Recommendation Approval of the following amendments: • Adjust the service boundary to include an additional 144 acres in the west portion of the lift station basin. • Addition of 8 inch gravity line that will serve area to the north of the lift station and east of CR 33, line will connect into the 24 inch gravity main. 4 DATE: December 30, 2019 TO: Peter Zanoni, City Manager FROM: Al Raymond, Director, Development Services alraymond@cctexas.com (361) 826-3276 STAFF PRESENTER(S): Name Title/Position Department 1. Al Raymond, III Director Development Services 2. Michael Dice Assistant Director Development Services ISSUE: This briefing is a preface to the presentation occurring at the City Council Meeting on February 18, 2020. This presentation will provide a brief history lesson of the trust funds, discuss the established policies and disposition on how developers were reimbursed and introduce the alternative methods for financing the expansion and maintenance of water, wastewater and stormwater facilities as recommended by the consultant. BACKGROUND: Through dedicated research and benchmarking we have worked closely with Duncan Associates and have identified options the City of Corpus Christi should consider with respect to expanding its infrastructure. Today’s briefing is to present and review the options along with their proposed financial impact and provide recommendations to the City Council for their future consideration as to what would work best for the City of Corpus Christi. LIST OF SUPPORTING DOCUMENTS: PowerPoint – Trust Fund Briefing Trust Fund Briefing AGENDA MEMORANDUM Briefing for the City Council Meeting of January 28, 2018