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Home My WebLink About028834 RES - 11/09/2010Page 1 of 2 RESOLUTION APPROVING THE AMENDMENTS TO THE CITY OF CORPUS CHRISTI, TEXAS, BUSINESS & JOB DEVELOPMENT CORPORATION GUIDELINES AND CRITERIA FOR GRANTING BUSINESS INCENTIVES, ADOPTED BY THE BOARD OF DIRECTORS, CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION, ON OCTOBER 18, 2010, WHICH RECOGNIZE NON-STANDARD EMPLOYEES WHEREAS, the Board of Directors, Corpus Christi Business & Job Development Corporation, on October 18, 2010, adopted amendment to the Corporation's Guidelines and Criteria for Granting Business Incentives, which recognizes non-standard employees (a copy of the amendment is attached to and incorporated into this resolution as Exhibit A); and WHEREAS, Section 501.073, Texas Local Government Code, requires the City Council to approve the programs of the Corporation; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council approves the amendments to City of Corpus Christi, Texas, Business & Job Development Corporation Guidelines and Criteria for Granting Business Incentives, adopted by the Corporation's Board of Directors, on October 18, 2010, which recognizes non-standard employees. A copy of the amendment is attached to and incorporated into this resolution as Exhibit A. ATTEST: Armando Chapa City Secretary APPROVED: 3rd day of November, 2010. R. Jaynira'g First Assistant City Attorney For City Attorney THE CITY OF CORPUS CHRISTI freZ/4W-12",_; Joe Ad e Mayor 028834 Type A Guidelines -- Non -Standard Employee Amendment Resolution -- 11032010 INDEXED Page 2 of'2 Corpus hristi, Texas of gag/ , 2010 The above resolution was passed by the following vote: Joe Adame Chris N. Adler Brent Chesney Larry R. Eiizondo, Sr. Kevin Kieschnick Priscilla Leal John E. Marez Nelda Martinez Mark Scott X✓ 028834 Type A Guidelines -- Non -Standard Employee Amendment Resolution --11032010 EXHIBIT A MOTION TO AMEND THE CORPORATION'S GUIDELINES & CRITERIA FOR GRANTING BUSINESS INCENTIVES RELATING TO NON-STANDARD EMPLOYEES ADOPTED BY THE BOARD OF DIRECTORS OF THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION ON OCTOBER 18, 2010 Motion to amend the City Of Corpus Christi, Texas Business & Job Development Corporation Guidelines & Criteria for Granting Business Incentives, which were approved by the Board of Directors of the Corpus Christi Business and Job Development Corporation on September 10, 2007, and by the Corpus Christi City Council on September 18, 2007, to recognize non-standard employees. The Guidelines and Criteria are amended as follows: 1. Section 1, Definitions is amended by adding a new subsection (n) to read as follows and renumbering existing subsections (n) — (y) as (o) — (z): "(n) "Section 1. Definitions. * "Job" means a full time employee or an individual hired as a contractor, consultant, or leased employee. The contractor or consultant must have a home address in the Corpus Christi Metropolitan Statistical Area. "Modernization" means the replacement and upgrading of existing "facilities" which increase the productive input or output, updates the technology or substantially lowers the unit cost of the operation, and extends the economic life of the "facilities". Modernization may result from the construction, alteration or installation of buildings, structures, fixed machinery or equipment. It shall not be for the purpose of reconditioning, refurbishing, repairing or completion of "deferred maintenance". "New Facility" means a property previously undeveloped which is placed into service by means other than or in conjunction with an "expansion" or "modernization". "Owner" means the owner of a "facility" or "program" subject to business incentives. If the "facility" is constructed on a leased property, the owner shall be the party which owns the property subject to the business incentive. The other party to the lease shall join in the execution of the "agreement" but shall not be obligated to assure performance of the party receiving business incentive. A-1 Type A Guidelines -- Non -Standard Employee Amendment Exhibit A --10292010 "(q} „{ ) "Petrochemical Facility" means buildings and structures, including fixed machinery and equipment, the primary purpose of which is or will be the manufacture or processing of petrochemicals or fuels by physical or chemical change. "Primary Employer" means a business in which at least 70% of its goods and/or services are sold to customers that are located more than 50 miles from the intersection of Staples Street and Leopard Street and whose goods and/or services are in one of the NAICS codes listed in Texas Revised Civil Statutes, Article 5190.6, Sec. 2 (17), as amended. "Project Agreement" means the agreement made by and between the "City" and the "Corporation" which assigns responsibilities for jointly carrying out each "agreement" to assure that funds are used for authorized purposes. City execution of the Project Agreement shall be in the form of an adopted Resolution by the City Council of the City. "Regional Distribution Center Facility" means buildings and structures, including fixed machinery and equipment, used or to be used primarily to receive, store, service or distribute goods or materials owned by the Facility operator where a majority of the goods or services are distributed to points beyond a 50 -mile radius of Nueces County. "(u)iy), "Regional Telecommunications/Data Processing Center Facility" means buildings and structures used or to be used primarily for the provision of telecommunication or data processing services by the - Facility operator where a majority of the services are provided to points beyond a 50 -mile radius of Nueces County. "(v) "Research and Development Facility" means buildings and structures used or to be used primarily for the purpose of product developmental engineering, testing and evaluation. "Retention" means to retain existing primary employers so that they continue their business operation within the Corpus Christi city limits and its extraterritorial jurisdiction (ETJ). "Small Business" means an employer that employs 49 or less full time (2,080 hours/year) permanent employees at the time of application. "Small Business Primary Employer" means a primary employer that employs 49 or Tess full time (2,080 hours/year) permanent "(w) "(Y} A-2 Type A Guidelines -- Non -Standard Employee Amendment Exhibit A --10292010 employees at the time of application and comply with the requirement(s) set forth under "Definitions" letter (r)." 2. Section 4 is amended by revising subsection (e) to read as follows and renumbering subsections (e) — (g) as subsections (d) -- (f): "Section 4. Primary Employer Business Incentives. (641.01 Wage Requirement. In order to count as a job under an Agreement, the job shall pay at least a "living wage". For purposes of this provision, living wage shall mean that annual amount determined by the U.S. Department of Health and Human Services for the Corpus Christi area as being at the poverty level for a family of three, divided by 2,080 hours per year. In determining if this requirement is met, the Board may also consider other compensation factors or employee benefits that enhance the employee's compensation package as a whole. Accordingly, the Corporation, through its Project Agreement with the City, may adjust the living wage target under these Guidelines and Criteria and insert a specific target in each Agreement to govern the incentive offered. With regard to job training, a job shall pay at least an amount as determined by the Act in order to count as a job under an Agreement. In determining an incentive based on new jobs, the following matrix matrices shall be considered. New Gross Payroll Incentive per New Job for Employees New Gross Payroll Incentive per New Job <$30,000 per new job Up to $750 per new job for training $30,000 to $40,000 per new job $751 to $5,000 per new job $40,001 to $50,000 per new job $5,001 to $10,000 per new job >$50,000 per new job $10,001+ per new job New Gross Payroll Incentive per New Job for Contractors and Consultants New Gross Payroll Incentive per New Job x$33,000 per new lob Up to $750 per new lob for training $33,000 to $44,000 per new job $751 to $5,000 per new job $44,001 to $55,000 per new job $5,001 to $10,000 per new lob >$55,000per new job $10,001+ per new lob Job Creation Qualification. In order to be eligible for business incentives, the planned Capital Investment must create and maintain the minimum number of 50 full-time (2,080 hours/year) permanent jobs within two (2) years of an effective date as set out in the Agreement. Annual validation of A-3 Type A Guidelines -- Non -Standard Employee Amendment Exhibit A -- 10292010 ()Lt wage rates shall be provided as set forth in Section 10 (b) herein. With regard to job training, an exception to this requirement may be granted by the Board on a case by case basis. Health Insurance. To qualify for incentives, a primary employer shall certify that it has offered a health insurance program for its employees during the term of the Agreement. A-4 Type A Guidelines -- Non -Standard Employee Amendment Exhibit A -- 10292010