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Home My WebLink About13159 ORD - 05/05/1976• JKH:hb:5 /5/76:1st AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ESCROW AGREEMENT WITH THE UNITED STATES OF AMERICA, REPRESENTED BY THE DISTRICT ENGINEER, U. S. ARMY ENGINEER DISTRICT, GALVESTON, TEXAS, AND THE CORPUS CHRISTI BANK 6 TRUST, THE CITY'S DEPOSITORY BANK, TO PERMIT INVESTMENT OF CITY'S FONDS FOR THE CORPUS CHRISTI BEACH RESTORATION PROJECT UNTIL SAID FUNDS ARE NEEDED FOR EXPENDI- TURES, ALL AS MORE FULLY SET FORTH IN THE ESCROW AGREEMENT, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A "; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to enter into an Escrow Agreement with the United States of America, represented by the District Engineer, D. S. Army Engineer District, Galveston, Texas, and the Corpus Christi Bank 6 Trust, the City's depos- itory bank, to permit investment of City's funds for the Corpus Christi Beach Restoration Project until said funds are needed for expenditures, all as more fully set forth in the Escrow Agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A ". SECTION 2. The necessity to execute the aforesaid agreement at the earliest practicable date creates a public emergency and an im- perative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, having requested the suspension of the Charter rule and that this ordinance take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED this the L day of May, 1976. ATTEST: [. (J,,AW, City Secretary MAYOR THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: SDAY OF MAY, 1976: J. B UCE AYCOCK, C ATTORNEY By Assistant City Attorney 13159 THE STATE OF TEXAS COUNTY OF NUECES ESCROW AGREEMENT THIS ESCROW AGREEMENT made and entered into this day of 1976, by and between the City of Corpus Christi, an Incorporated City in the State of Texas (hereinafter called the "City "); the United States of America (hereinafter called the "Government ") represented by the District Engineer, U. S. Army Engineer District, Galveston, Texas, and the Corpus Christi Bank & Trust, a Texas (National) bankinc corporation, with its office and principal place of business in Nueces County, Texas (hereinafter called the "Bank "). WITNESSETH: WHEREAS, the Government is responsible for construction of a Beach Restoration Project at Corpus Christi Beach, Texas, authorized in 1970 under Section 201 of the Flood Control Act of 1965, as described in House Document No. 91 -415, 91st Congress, 2nd Session; and WHEREAS, the City is required to contribute in cash �O percent of the first costs (including the costs of construction, engineering and design, and supervision and administration, and excluding the costs of lands, easements, rights -of -way, and relocations) of all items of work to be provided by the Government, the amount presently estimated at $999,000.00 to be paid in lump sum prior to start of construction, or in installments prior to the start of pertinent work items in accordance with construction schedules as required by the Government, the final apportionment of costs to be made after the actual costs have been determined; and WHEREAS, the City is required to contribute in cash 50 percent of beach nourishment costs for the first 10 years of project life, now estimated at $98,000.00 annually, such nourishment costs for the first 5 -year period of the project, now estimated at $490,000,00 to be included in the project first costs as advance nourishment, and following contributions to be made prior toy each nourishment operation; and WHEREAS, the City, pursuant to assurances evidenced by the Local Coopera- tion Agreement dated 4 February 1976 as required by Section 221 of the Flood E X}4-1.0 Control Act of 1970 (PL 91 -611) is obligated to provide a cash contribution currently estimated at $1,489,000 in required contributed funds; and WHEREAS, the City is obligated by aforesaid agreement to deposit with the Government aforesaid sum prior to contract award; and WHEREAS, the interest income of this amount of money for the required period is substantial, and would be lost by the City; and WHEREAS, an escrow agreement can permit the City to earn such interest income and will also assure the availability of fluids to the Government to make payment of the aforementioned first costs and beach nourishment costs; NOW THEREFORE, IT IS HEREBY MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: 1. There is hereby created and established with the Bank an Escrow Fund pursuant to the terms of this agreement. The City shall make absolute and irrevocable delivery of the initial sum of $1,489,000.00 to the fund when requested by the Government prior to contract award, which amount shad be deposited in said fund. 2. The City agrees to add to the said sum additional sums as required to meet the City's share of costs as set forth in aforesaid Local Cooperation Agreement. 3. The Bank agrees to disburse the said Escrow Fund to only the District Engineer of the U. S. Army Engineer District, Galveston, Texas, for the pur- pose of said project on demand of the Government as evidenced by written demand of the District Engineer, U. S. Army Engineer District, Galveston, Texas. A copy of each demand shall be furnished to the City at the time it is made. The Bank, at the time of the payment,shall submit a notice of payment to the City. 4. Each demand from the Escrow Fund made by the Government shall specify the sum requested. The Bank shall have a period of thirty (30) days within which to forward to the Government the sum requested and agrees that it will have such sum available for payment. All payments made by the Bank shall . be drawn to the "Treasurer of the United States: and mailed or otherwise delivered to the District Engineer, U. S. Army Engineer District, Galveston, Texas, P.O. Box 1229, Galveston, Texas, 77553• The Bank shall not be a -2- • Guarantor that work contemplated to be performed and for which the sums ar� paid has or will be so performed. 5. The Bank shall keep and maintain adequate records pertaining to the Escrow Fund, and all disbursements therefrom. When the Escrow Fund has been closed out as provided by paragraph 6 hereof, the Bank shall file an accounting thereof with both the Government and the City. 6. Completion or discontinuance of the project shall be evidenced by filing with the Bank a certificate signed by the District Engineer, U. S. Army Engineer District, Galveston, Texas, with the approval of the City endorsed thereon, which certificate shell set forth the date of completion or abandonment of the project and that all obligations and costs in connee- tion with the project, and payable out of the Escrow Fund, have been paid and discharged. Any balance remaining in the fund shall be remitted to the City. 7. Monies held for the credit of the Escrow Fund under this Agreement shall be kept invested and reinvested by the Bank in obligations of the Government or in obligations of Agencies or insurers which are guaranteed by the Government, which at maturity dates are subject to redemption by the holder at the option of the holder on or prior to the dates that funds will be needed. Obligations so purchased as an investment of money shall be held by or under the control of the Bank as security for fonds on deposit and be deemed the Escrow Fund. 8. In consideration of the deposit made with Bank, Bank does hereby agree to pay interest to the City. Amount, terms, and manner of payment are matters of separate agreement between the Bank and the City. IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first above written. ATTEST: THE CITY OF CORPUS CHRISTI City Secretary APPROVED: DAY OF MAY, 1976: J. BRUCE AYCOCK, CITY ATTORNEY By. Assistant City Attorney Director of Finance BY R. Marvin Townsend, City Manager CORPUS CHRISTI BANK & TRUST By President UNITED STATES OF AMERICA ATTEST: U. S. ARMY ENGINEER DISTRICT Galveston, Texas BY District Engineer CORPUS CHRISTI TEXAS DAY OF 19� TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF TN[ CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION 9HALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; I, THEREFORE REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCEDm OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY Q,--, - - - MAYOR THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JASON LUBY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE 1 _ THE ABOVE ORDINANCE WAS PASSED BY THE F LOWING VOTE: JASON LUSY , OR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GALLEY GAGE LOZANO, SR. EDWARD L. SAMPLE