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HomeMy WebLinkAboutC2026-144 - 9/8/2026 - Approved INTERLOCAL COOPERATION AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND THE PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS, FOR SEA DISTRICT SHORELINE IMPROVEMENT PROJECT This Interlocal Cooperation Agreement("Agreement")is made by and between the City of Corpus Christi, Texas ("City"), a municipal corporation and home-rule city of the State of Texas, acting by and through its governing body,the City Council,and the Port of Corpus Christi Authority of Nueces County, Texas ("PCCA"), acting by and through its governing body, the Port Commission. The City and PCCA are sometimes referred to in this Agreement as "Parties" and individually as a"Party". WHEREAS,PCCA has,with input from City staff,designed Harbor Point,a public space on land formerly occupied by the old Harbor Bridge, and generally located between Charles Zahn Jr. Drive (formerly Harbor Drive) and the Corpus Christi Ship Channel; and WHEREAS,PCCA and City entered into a Memorandum of Understanding dated February 1,2021,(the"MOU")to enable PCCA to construct permanent public improvements on City property as part of the planned redevelopment (Harbor Point) of the old Harbor Bridge right-of-way; and WHEREAS,waterside pedestrian access to the planned location of Harbor Point is currently unavailable because the downtown pedestrian promenade terminates behind the Art Museum of South Texas ("Art Museum"); and WHEREAS,independent analyses by the Federal Emergency Management Agency and the City identified the shoreline behind the Corpus Christi Museum of Science and History as vulnerable sections of the Downtown Floodwall Protection System; and WHEREAS, improvements to the shoreline between the Art Museum and the planned location of Harbor Point would enhance flood protection, provide pedestrian connectivity, and improve operations in the adjacent reach of the Corpus Christi Ship Channel; and WHEREAS, ownership of the southern shoreline of Corpus Christi Bay is shared between PCCA, the City, and the US Army Corps of Engineers ("USACE"); and WHEREAS,improvements along the shoreline near the mouth of the Inner Harbor have been listed in the City's long-term Seawall Capital Improvement Plan since 2013 and are included in the City's Capital Improvement Plan (FY25-28) at $13.85M for design, engineering administration reimbursements, and construction with funding available from Type A and Type B sales tax; and WHEREAS, PCCA agrees to implement improvements to the shoreline between the Art Museum and the planned location of Harbor Point(the shoreline improvements referred to herein as the "Project") on behalf of the City, subject to City's agreement to the terms defined in this Agreement related to coordination and cost share; and 1 368935 WHEREAS, the purpose of this Agreement is to: (1) memorialize the Parties' agreement regarding PCCA's implementation of the Project and City' financial contribution; and (ii) memorialize the Parties' agreement regarding long-term use and maintenance of improvements. NOW, THEREFORE, BE IT AGREED BY THE CITY OF CORPUS CHRISTI, TEXAS, AND THE PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS: SECTION 1. PROJECT SCOPE. 1.1 Project Scope. The scope of the Project includes constructing a bulkhead with concrete apron along approximately 700 linear feet of the south shoreline at the mouth of the Inner Harbor of the Corpus Christi Ship Channel to provide flood protection, pedestrian connectivity,and Ship Channel operational improvements.Design of the improvements will be led by PCCA and coordinated with City. The geographic scope of the Project is attached hereto as Exhibit A and the development concept is rendered in Exhibit B.PCCA's planned upland redevelopment, Harbor Point, is outside the scope of the Project as defined in subsequent terms of this Agreement. PCCA may proceed with the Harbor Point improvements prior to and independent of shoreline improvements. 1.2 Contract Management. PCCA will be responsible for contract execution and administration, including the procurement and oversight of design and construction of the Project, and coordination of an outgrant(or similar real estate agreement)with USACE for portions of the Project to be constructed on USACE property. 1.3 Design. PCCA will furnish 60% design drawings and specifications to the City Project Manager for review and comment which City will provide within thirty (30) days after submittal. Prior to soliciting bids and/or proposals for construction,PCCA will submit to the Project Manager assigned by the City's Engineering Services Department a detailed set of construction drawings and technical specifications for the Project(collectively,the"Plans") for the City's approval,which approval shall not be unreasonably withheld nor unreasonably delayed. The Plans shall be prepared in a standard engineering format and must be signed and sealed by a Professional Engineer registered in the State of Texas. If the City's Project Manager fails to respond to a request for approval of the Plans within thirty(30) days after submittal, the City will be deemed to have given its written approval of the Plans. City Project Manager: Ratna Pottumuthu, P.E. ratnap @corpus chri stitx.gov 1.4 Construction. Contract amendments or change orders altering the Plans or the scope of work that require approval by the Port Commission shall also be furnished to the City's Project Manager for prior approval, which approval shall not be unreasonably withheld nor unreasonably delayed. If the City's Project Manager fails to respond to a request for 2 368935 approval of a contract amendment or change order within five (5) business days after submittal, the City will be deemed to have given its written approval of the contract amendment or change order. The Parties agree that no building permit or other authorization by the City shall be required for the Project other than the approvals as stated in this Sections 1.3 and 1.4. 1.5 Payment of Costs. A. PCCA shall be responsible for all permitting,real estate, and design costs associated with implementing the Project. The City agrees to reimburse PCCA up to $13.85M toward the Project design and construction costs. B. PCCA may present invoices to the City on a periodic basis, but no more frequently than monthly, for the City's cost-share portion of the design and construction costs incurred by PCCA as the Project progresses. Each invoice shall be accompanied by supporting documentation that shows detailed project payment information and the percent completion of the Project.An authorized representative of PCCA shall certify the amount paid by PCCA. The City's obligation to reimburse costs properly invoiced under this Section 1.5 shall not be conditioned on PCCA's prior expenditure of the full cost-share amount and shall survive expiration or termination of this Agreement as provided in Section 2.3. C. The City agrees to pay the periodic invoices(subject to City's review and acceptance) upon appropriation of the funds as follows: 1. FY26 - $3.5M 2. FY27 - $4.25M 3. FY28 - $6.1M D. PCCA invoices shall be mailed to: City of Corpus Christi Attn: Accounts Payable PO Box 9277 Corpus Christi, TX 78469-9277 E. In no event shall the City's participation in this Project exceed $13,850,000.00. 1.6 Maintenance following Construction. PCCA will be responsible for maintaining Project elements after construction. As defined in Section 1.1 above, PCCA's planned upland redevelopment, Harbor Point, is outside of the scope of the Project as defined herein (see Exhibit A). PCCA will be responsible for maintaining public improvements constructed by PCCA on City property as part of Harbor Point. SECTION 2. TERM OF AGREEMENT AND TERMINATION. 3 368935 2.1 Effective Date. The effective date of this Agreement is the date on which all parties have executed this Agreement. 2.2 Term. This Agreement shall be for a term of two years beginning on the Effective Date. The term shall automatically extend year-for-year until the Project is completed. 2.3 Termination. Either party may terminate this Agreement by giving written notice to the other party if the other party ("Defaulting Party") materially breaches any term, condition or provision of this Agreement and fails to cure the breach to the satisfaction of the notifying party within thirty(30)days after the Defaulting Party receives a written notice of the breach from the notifying party. Notwithstanding any termination of this Agreement,and regardless of which party terminates, the City shall remain obligated to pay its cost-share, up to the amount specified in Section 1.5, of(i) all Project work performed and all costs incurred by PCCA through the effective date of termination,and(ii)all non-cancelable commitments and reasonable demobilization costs incurred by PCCA before the effective date of termination. If the City terminates this Agreement following PCCA's issuance of a Notice to Proceed to its construction contractor(s), and PCCA elects to proceed with the Project,the City shall not be relieved of its payment obligations under Section 1.5. The City's payment obligations under Section 1.5 shall survive termination of this Agreement. SECTION 3. WORK ON CITY PROPERTY. 3.1 The City previously granted PCCA permission to construct Harbor Point improvements on City property pursuant to the MOU between PCCA and the City dated February 1, 2021, attached as Exhibit C. The City agrees that no new permission is required for PCCA to continue its planned upland redevelopment as granted by the MOU. 3.2 This Agreement replaces and supersedes the MOU dated February 1, 2021. 3.3 PCCA's right to construct public improvements on City property within the Harbor Point footprint (see Exhibit A), as well as PCCA's obligation to maintain those public improvements, shall survive termination of this Agreement. SECTION 4. GENERAL PROVISIONS. 4.1 Severability. In the event any term, covenant, or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either PCCA or City in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. 4.2 Entire Agreement. This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with 4 368935 respect to the covenants,whether written or verbal,antecedent or contemporaneous,with the execution hereof. This Agreement replaces and supersedes the MOU dated February 1, 2021. 4.3 Written Amendment. Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. 4.4 Notices. All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third(3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed(certified mail, return receipt requested) addressed to the respective other party at the address prescribed below, or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. The initial addresses of the parties,which one party may change by giving written notice of its changed address to the other party, are as follows: CiLv PCCA Peter Zanoni Kent A. Britton City Manager Chief Executive Officer City of Corpus Christi Port of Corpus Christi Authority 1201 Leopard, 5th Floor P. O. Box 1541 Corpus Christi, Texas 78401 Corpus Christi, Texas 78403 Cc: Jeff H. Edmonds, P.E. Director of Engineering Services jeffreyE@corpuschristitx.gov 4.5 Non-Waiver. Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. 4.6 Successors. This Agreement shall bind and benefit the parties and their legal successors. 4.7 No Waiver of Immunity. No party hereto waives or relinquishes any immunity or defense on behalf of itself, its officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. Notwithstanding the foregoing, nothing in this Section 4.7 waives, disclaims, limits, or otherwise affects the waiver of immunity from suit provided by Subchapter I, Chapter 271 of the Texas Local Government Code for the adjudication of a claim for breach of this Agreement. 5 368935 4.8 Interlocal Cooperation Act. This Agreement is subject to the terms and provisions of the Texas Interlocal Cooperation Act, codified as Chapter 791 of the Texas Government Code. Further, each party represents that this agreement has been duly passed and approved by its governing body, as required by the Act. 4.9 Payments. Any payment made for any of the services provided pursuant to this Agreement shall be made out of current revenues available to such Parties as required by the Interlocal Cooperation Act. All funding obligations under this Agreement are subject to the appropriation of funds by each entity in its annual budget. 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 appropriation 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 Councils' sole discretion when adopting each budget. Staff will include this item in the budget request for each fiscal year that payments become due under this Agreement. The obligations of the City under this Agreement constitute a current expense of the City for each fiscal year of the City and shall not constitute an indebtedness of the City within the meaning of the Constitution and Laws of the State of Texas. Nothing herein shall constitute a pledge by the City of any taxes or other moneys(other than moneys lawfully appropriated from time to time by or for the benefit of the City for this Agreement and the net proceeds of any applicable insurance)to the payment of any amount coming due hereunder. The City agrees to promptly notify PCCA if funds are not appropriated. 4.10 Relationship of Parties. In performing this Agreement, the City and PCCA shall act in an individual capacity,and not as agents,representatives,employees,employers,partners,joint- venturers,or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 4.11 Disputes. Each party agrees that any dispute between the parties relating to this Agreement will first be submitted in writing to a panel of two senior executives of the City and PCCA, who shall promptly meet and confer in an effort to resolve such dispute through good faith consultation and negotiation. Each party's executives shall be identified by notice to the other party,and maybe changed at anytime thereafter also by notice to the other party. Any decisions of the executives will be final and binding on the parties, unless approval by the governing bodies of the parties is require by law. In the event the executives are unable to resolve any dispute within thirty(30) days after submission to them, either party may then refer such dispute to mediation. If the parties refer to mediation any controversy or claim arising out of or relating to this Agreement or the existence,validity,breach or termination thereof,whether during or after its term, they shall select a mutually acceptable mediator within forty-five (45) days thereafter. Neither party shall unreasonably withhold consent to the selection of a mediator. The parties shall share equally the costs of mediation. If the parties agree, they may 6 368935 substitute other forms of alternative dispute resolution. Any mediation shall not extend beyond thirty(30) days after the appointment of the mediator, and should the parties fail to resolve any dispute by mediation within such 30-day period,the parties shall have all rights available at law or in equity. 4.12 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, and it shall be performable in Nueces County, Texas. [Signature page follows this page.] 7 368935 IN WITNESS WHEREOF, the City and PCCA have made and executed this Agreement in multiple copies, each of which is an original. CITY OF CORPUS CHRISTI PORT OF CORPUS CHRISTI AUTHORITY WL4S14/1 Sep 24, 2026 Jeff Edmonds(Sep 24,2026 09:22:49 CDT) 9/16/2026 Jeff H. Edmonds, P.E. Date Chief Executive Officer Date Director of Engineering Services APPROVED AS TO FORM: Sep 24, 2026 Janet Whitehead(Sep 24,2026 08:47:57 CDT) Assistant City Attorney Date M 2026-096 AUTHORIZED BY COUNCIL,9/8/2026 RH/SB 8 368935 • •t� •x � gyp\ Q1 y (�1 • • O • • 2 O • • • i EC IU W v � m w O c y • • • • • • ' Q V C G LL I �!v� I i • 1 Planned Harbor Point \ .' Improvements v a v 0 - v E rn c= a� air 0 U n� V u LLFr�V Q rl 5 co f - � E z - i• y` 0 z O U a�n li p G L H / *' V U 6 ca O J � L LL LU O ~ j a Z r C) 1 I m X W EXHIBIT C MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU) is by and between the CITY OF CORPUS CHRISTI,TEXAS ("CITY")and the PORT OF CORPUS CHRISTI AUTHORITY OF NUECES COUNTY, TEXAS ("PCCA"). The CITY and PCCA shall be referred to herein collectively as the "Parties." WHEREAS, the PCCA has,with input from CITY, developed a Plan for improvements to the public space along Harbor Drive adjacent to and on PCCA and CITY property; and WHEREAS, completion of this work is an essential first step to move into detailed design of Phase 2 site development, as planned and budgeted by PCCA for 2021; and WHEREAS,the CITY is considering potential improvements to the bayfront seawall levee adjacent to and on PCCA property; and WHEREAS, the potential seawall improvements will assist in the flood protection created by the CITY's anticipated improvements to the downtown floodwall levee system; and WHEREAS, the Parties will enter into an Interlocal Cooperation Agreement ("ILA") at such time as the CITY commences the seawall project to include terms regarding long-term use and maintenance of each Party's respective property; and WHEREAS,this MOU provides for PCCA to enter onto City property within the outlined orange project boundary on Exhibit A for the purpose of constructing the planned improvements and maintaining certain of these improvements; NOW, THEREFORE, the CITY and PCCA agree to and acknowledge the following in relation to the planned improvements to be made on CITY property located along Harbor Drive adjacent to the Museum of Science and History: 1. CITY grants PCCA the right to enter onto City property to make permanent public improvements as shown in Exhibit B. CITY will not participate in funding the improvements. 2. CITY acknowledges that the improved parking area shown in grey on Exhibit B and in red striping on Exhibit A will be the CITY's maintenance responsibility upon completion of the improvements. 3. Subject to paragraph 2, above, PCCA shall: a. Either self-perform all construction and maintenance responsibilities or use a responsible contractor to perform the work. b. Coordinate with the CITY and Museum of Science and History during construction of the improvements to minimize disruption of services and operations. 1 2 c. Maintain the improvements made on CITY property shown in pink hash marks on Exhibit A. d. Require any contractor working on CITY property to provide insurance as shown in Exhibit C. 4. This MOU becomes effective upon execution by all parties and automatically renews each year and shall terminate upon execution of the ILA that details the long-term use and maintenance responsibility of the Parties regarding the improved property. The CITY and PCCA agree to the provisions and terms of this MOU as evidenced by their signatures below. CITY OF CORPUS CHRISTI PORT OF CORPUS CHRISTI AUTHORITY January 28, 2021 P anoni Date Chief Executive Officer Date City Manager APPROVED AS TO FORM A �L X e��l Z/ i- ag -�q,/ Date City Attorney 3 O fND O 00 ♦ �. @ cD o c o Lnn tin O 6 0 ' rt o 3 m n o w ni a s 0 + 0 o o o 0 (D O �' N o (D , 0 G o 0 0rD pr ((D 0 \� i 3 (< 1 0 (D 3 n 3 � z 3 0 3 °w' v � r-r 7• 0 sJ- 3 D as is rat .. .; _ r-r fDD 3fD d !f i 0 `A1 x 0 0 ( '0 ;- ► �`�! 00 v ,,•r v �' r� Exhibit B Phase 1-Base Bid PCCA Funded (Design Complete/Construction Contract Pending) SITE EXPERIENCES LEGEND Phase 1-Additive Bid Item 1 _ PCCA Funded 1. FOOD TRUCK COURT Port/City (Design Complete/Construction Contract Pending) 2. GATEWAY FEATURE E..—..:1 Property Boundary 3. NATIVE LANDSCAPE/STORMWATER FILTRATION Phase 1-Additive Bid Item 2 Collaborative STEM Education Opportunity Proposed City Participation 4. MAIN PLAZA (Design Complete/Construction Contract Pending) Terraced Seating and Performance Space 5. LOUNGE LAWN/WATERFRONT BENCHES+SWINGS Phase 2 6. INTERACTIVE PLAY AREA,AGES 8-80 Future Phase 7. ART WALK PROMENADE (conceptual Development) 8. POTENTIAL TROLLEY CONNECTION Phase 2A 9. SHIP CHANNEL OVERLOOK Future Phase 10. FUTURE DEVELOPMENT OPPPORTUNITY (Conceptual Development) Phase 3 Future Phase (Future Development Opportunity) 0 Existing Site F�g4t ; --1�0056C5 O / 4 i; 3 F 111111 I I l][A 111111 M, OOo00p0 - ,„ IT1TIl 1 1 11111111' f z �ITOOOo O00( 3 T s \l ' �3 C . 7 20 3 1i "1 a 1 10l ' i T.M., 1i, •�.- ;'J PORTCORPUSCHRISTI® PCCA CONCEPTUAL SITE DEVELOPMENT NOT FOR ING,0 ORVAPPR'nON MASTER SITE,PORT PROPERTY PERMITTING,OR CONSTRUCTION ARCHITECT DAVIO R.RICH- APPROX.SCALE 1"=60'-O" 1 August 18,2020 TBAE NO.7113 1 Exhibit C INSURANCE REQUIREMENTS A. PCCA must not commence work or allow any contractor to commence work under this MOU until all insurance required herein has been obtained and approved by the City. B. PCCA must furnish to the City's Risk Manager Certificates of Insurance showing the following minimum coverage by insurance company(s) acceptable to the City's Risk Manager. The City must be named as an additional insured for the General liability policy and a blanket waiver of subrogation is required on all applicable policies. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-Day written notice of cancellation,non-renewal, Bodily Injury and Property Damage material change or termination is required on all Per occurrence aggregate certificates or by applicable policy endorsements Commercial General Liability including: $1,000,000 Per Occurrence 1. Commercial Form $2,000,000 Aggregate 2. Premises—Operations 3. Products/Completed Operations Hazard 4. Contractual Liability 5. Broad Form Property Damage 6. Independent Contractors Automobile Liability—Owned,Non-owned, Rented/Leased $500,000 Combined Single Limit Workers' Compensation Statutory Employer's Liability $500,000 C. In the event of accidents of any kind,PCCA must furnish the Risk Manager with copies of all reports of such accidents within 10 days of the accident. Signature: cSakah �l'GIh�CG�?GID�f�I' Sarah Brunkenhoefer(Sep 24,2026 1 :01:49 CDT) Email: citysecretary@corpuschristitx.gov