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Home My WebLink AboutAgenda Packet City Council - 01/29/2002CITY COUNCIL AGENDA /r orpus Christi January 29, 2002 1:45 p.m. Proclamation declaring January 31, 2002 as "Tom Utter Day" Proclamation declaring February 4 - 10, 2002 as "Texas Newborn Babies Week" AGENDA CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING CITY HALL o COUNCIL CHAMBERS 1201 LEOPARD JANUARY 29, 2002 2:00 P.M. PUBLIC NOTICE - THE USE OF CELLULAR PHONES AND SOUND ACTIVA TED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Members of the audience will be provided an opportunity to address the Council at approximately 5:30 p.m. or at t,~e end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state your name and address. Your presentation will be limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Si ud. Desea dirigirse al Concilio y cree que su ingl~s es limitado, habr~ un int~rprete ingl~s~espa~ol en todas las juntas del Concilio para ayudarle. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (at 361-880-3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Samuel L. Neal, Jr. to call the meeting to order. B. Invocation to be given by Pastor Buddy Murphey, Southcrest Baptist Church. C. Pledge of Allegiance to the Flag to the United States. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor Samuel L. Neal, Jr. Mayor Pro Tern Brent Chesney Council Members: Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott City Manager David R. Garcia City Attorney James R. Bray, Jr. __ City Secretary Armando Chapa E. MINUTES: 1. Approval of Regular Meeting of January 22, 2002. (Attachment # 1) Agenda Regular Council Meeting Janua~ 29,2002 Page 2 F. BOARDS & COMMITTEE APPOINTMENTS: (NONE) G. EXPLANATION OF COUNCIL ACTION: For administrative convenience, certain of the agenda items ara listed as motions, resolutions, or ordinances. If deemed approp#ate, the City Council will use a different method of adoption from the one listed; may finally pass an ordinance by adopting it as an emergency measure ratherthan a two reading ordinance; or may modify the action specified. A motion to reconsider may be made at this meeting of a vote at the last regular, or a subsequent special meeting; such agendas are incorporated herein for reconsideration and action on any reconsidered item. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been furnished with background and support matedal on each item, and/or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote. CONSENT MOTIONS, RESOLUTIONS, ORDINANCES AND ORDINANCES FROM PREVIOUS MEETINGS: (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration) Motion authorizing the City Manager or his designee to execute Amendment No. I in the amount of $395,020 with Urban Engineering for odor control improvements at the Allison Wastewater Treatment Plant Lift Station, the Arcadia Lift Station and for Rehabilitation Improvements at the Allison Wastewater Treatment Plant. (Attachment # 2) Motion authorizing the City Manager or his designee to execute an amendment in the amount of $146,150 with RVE Engineering, Inc. for engineering services associated with Corpus Christi International Airport Roadway and Parking Lot Improvements. (Attachment # 3) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting January 29,2002 Page 3 o o .8. Resolution authorizing condemnation proceedings by the City to condemn utility and temporary easements as follows: utility easement of 2.847 acres and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony Lands; utility easement of .454 acres and temporary easement of .674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands, all as shown on the attached Exhibit A, from the owner Cardco, Inc., to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood Wastewater Treatment Plant - 30" line, Project 7196, and for other municipal purposes. (Attachment # 4) Resolution authorizing condemnation proceedings by the City to condemn utility and temporary easements as follows: utility easement of 1.258 acres and temporary easement of 1.095 acres, being Parcel 1 out of Lot 8, Section 14, Bohemian Colony Lands, as shown on the attached Exhibit A, from the owner South Texas Rainbow Limited Partnership to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood Wastewater Treatment Plant - 30" line, Project 7196, and for other municipal purposes. (Attachment # 5) Ordinance abandoning and vacating 3,000-square feet, of a 10~ foot wide utility easement out of Lot 4A, Block 502, Padre island - Corpus Christi Mariner's Cay Subdivision; requiring the owner, Mr. B. Wiley Mayden, (Owner), to comply with the specified conditions and replat the property within 180 days at owner's expense. (Attachment # 6) Motion authorizing the City Manager or his designee to execute all documents necessary to accept and implement a grant from the Texas Department of Health for laboratory services for the analysis of bay water samples collected by Texas Department of Health for $22,500. (Attachment # 7) Ordinance appropriating a $22,500 grant from the Texas Department of Health in the No. 1050 Federal/State Grant Fund for laboratory services. (Attachment # 7) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting Janua~ 29,2002 Page 4 10. 11. Motion authorizing the City Manager or his designee to execute Attachment No. 02 to Contract No. 7460005741-2003 with the Texas Department of Health in the amount of $87,979 for tuberculosis prevention and control and expanded outreach services. (Attachment # 8) Ordinance appropriating a $87,979 grant from the Texas Department of Health in the No. 1050 Federal/State Grant Fund for tubemulosis prevention and control and expanded outreach services. (Attachment # 8) Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $77,271 to the State of Texas, Office of the Governor, Criminal Justice Division for fifth year funding of the Gang Analysis Unit of the Police Department. (Attachment # 9) Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $58,760 to the State of Texas, Office of the Governor, Criminal Justice Division for third yearfunding for the Computer Forensics Specialist. (Attachment #9) Resolution setting a priority number of one for the Gang Analysis Unit and priority number of two for the Computer Forensics Specialist for the grant application submitted to the State of Texas. (Attachment # 9) First Reading Ordinance - Authorizing the City Manager or his designee to execute a five-year lease with Marbella Grill, Inc., dba Christian's House, for the use of City property, to wit: Merriman- Bobys House in Heritage Park, to operate as a food service operation. (Attachment # 10) Second Reading Ordinance -Amending Section 53-99, Operation of Trucks, Trailers and Other Heavy Vehicles Restricted on Certain Streets, of the Code of Ordinances, City of Corpus Chdsti, to allow automated Solid Waste vehicles to travel against traffic on one-way streets to collect from City-provided garbage carts; providing for penalties. (First Reading - 1/22/02) (Attachment # 11) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting January 29,2002 Page 5 I. PUBLIC HEARINGS: (NONE) PRESENTATIONS: Public comment will not be solicited on Presentation items. 12. Update on Broadway Wastewater Treatment Plant Diversion Project (Attachment # 12) 13. United States Department of Housing and Urban Development - Designation of Corpus Christi as a "Renewal Community" (Attachment # 13) REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES: 14. Resolution authorizing the City Manager or his designee to sign the necessary documentation to accept U.S. Department of Housing and Urban Development's Renewal Community Designation in Census Tracts 1, 3, 4, 10, and 11, which is designed to stimulate economic development in these areas. (Attachment # 14) 15. Motion authorizing the City Manager or his designee to award a construction contract in the amount of $168,465.42 with Third Coast Construction for the Renovation of Senior and Recreation Centers at the following sites: (Bond Issue 2000 Project) (Attachment # 15) * T.C. Ayers Recreation Center * Ben Garza Gymnasium * Greenwood Senior Center 16.a. First Reading Ordinance - Approving a sixty-year ground lease at Corpus Chdsti International Airport between the City of Corpus Chdsti and the Corpus Christi Regional Economic Development Corporation. (Attachment # 16) 16.b. Ordinance repealing Ordinance No. 024717 (December 18, 2001) which approved a one-year ground lease at Corpus Christi International Airport between the City of Corpus Christi and the Corpus Chdsti Regional Economic Development Corporation; and rescinding the first-reading approval of a long-term ground lease at the Airport between those parties. (Attachment # 16) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting Janua~ 29,2002 Page 6 (RECESS REGULAR COUNCIL MEETING) L. CORPORATION MEETING: 17. CORPUS CHRISTI HOUSING' FINANCE CORPORATION MEETING: (Attachment # 17) AGENDA CORPUS CHRISTI HOUSING FINANCE CORPORA TION MEETING Date: Tuesday January29, 2002 Time: During the meeting of the City Council beginning at 2:00 p.m. Location: City Council Chambers City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 1. President John Longoria calls meeting to order. 2. Secretary Arrnando Chapa calls roll. Board of Directors Officers John Longoria, Pres. Mark Scott, Vice Pres. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison Samuel L. Neal, Jr. Jesse Noyola W. Thomas Utter, Gen. Mgr. Arrnando Chapa, Secretary Mary Juarez, Asst. Secretary Jorge Cruz-Aedo, Treasurer Mike Harry, Asst. Treasurer 3. Approve Minutes of October 16, 2001. 4. Financial Report Resolution with respect to an application for a calendar year 2002 reservation for qualified mortgage bond authority. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting Janua~ 29,2002 Page 7 M= o Resolution with respect to an application for a calendar year 2003 reservation for qualified mortgage bond authority. Discussion and adoption of position statement on South Texas Affordable Properties Corporation Project. Public Comment. Adjoumment. (RECONVENE REGULAR COUNCIL MEETING) PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 5:30 P.M. OR AT THE END OF THF COUNCIL MEETING, WHICHEVER IS EARLIER. PLEASF LIMIT PRESENTATIONS TO THREE MINUTES. IF YOUPLAN TO ADDRESS THE COUNCIL DURING THIS TIME PERIOD, PLEASE SIGN THE FORM AT THE REAR OF THE COUNCIL CHAMBER, GIVING YOUR NAME, ADDRESS AND TOPIC. (A recording is made of the meeting; therefore, please speak into the microphone located at the podium and state your name and address. If you have a petition or other information pertaining to your subject, p/ease present it to the City Secretary.) Si usted se dirige a la junta y cree que su ingl~s es limitado, habr~ un int~rprete ingl~s-espa~ol en la reunion de la junta para ayudarle. PER ClTY COUNClL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL BERATE, EMBARRASS, ACCUSE, OR SHOW ANY PERSONAL DISRESPECT FOR ANY MEMBER OF THE STAFF, COUNCIL MEMBERS, OR THE PUBLIC AT ANY COUNCIL MEETING. EXECUTIVE SESSION: PUBLIC NOTICE is given that the City Council may elect to go into executive session at any time during the meeting in order to discuss any matters listed on the agenda, when authorized by the provisions of the Open Meeting Act, Chapter 551 of the Texas Government Code, and that the City Council specifically expects to go into executive session on the following matters. In the event the Council elects to go CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting January 29,2002 Page 8 18. 19. O= into executive session regarding an agenda item, the section or sections of the Open Meetings Act authorizing the executive session will be publicly announced by the presiding off/ce. Executive Session pursuant to Texas Government Code Section 551.071 regarding City of Corpus Chdsti Project #3219, Nourishment of Corpus Chdsti Beach - 2001, with possible discussion and action related thereto in open session. Executive Session pursuant to Texas Govemment Code Section 551.071 regarding Armando D. Flores v. City of Corpus Christi, No. 00-3837-G, 319th District Court, Nueces County, Texas, with possible discussion and action related thereto in open session. REPORTS: The following reports include questions by Council to Staff regarding City policies or activities; request by Council for information or reports from Staff; reports of activities of individual Council members and Staff; constituent concerns; current topics raised by media; follow-up on Staff assignments; scheduling of future Council meetings and activities; and other brief discussions regarding city-related matters. 20. CITY MANAGER'S REPORT 21. 22. P. Upcoming Items MAYOR'S UPDATE COUNCIL AND OTHER REPORTS ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at 11~45 a.m., January 25 ,2002. Armando C~'apa City Secretary /J/~' CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting Janua~ 29,2002 Page 9 NOTE: The City Council Agenda can be found on the City's Home Page at www.ci.corpus-christi.tx.us after 7:00 p.m. on the Friday before regularly scheduled council meetings. If technical problems occur, the agenda will be uploaded on the Internet by Monday morning. Symbols used to highlight action item that implement council priority issues. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 2001-2002 CITY COUNCIL GOALS AND PRIORITY ISSUES ~'~CONTINUING PRIORITY ISSUES Airport / Seawall / Convention Center / Arena · Continue quarterly reporting process for these initiatives. '86 Bond Issue Improvements · Update status on Senior Centers. · Provide communication on completion of these projects (e.g. "Report to the Conununity'~). Continue community involvement on issues such as Leopard Street improvements. Privatization / Re-Engineerine · Clearly define "privatization" and "re-engineering.'~ Make decisions regarding pr~vatization and re-engineering in the next 12-24 months, with discussions within 90 days. · Establish process to identify what services can and cannot be privatized. · Continue focus on park maintenance. Finance · Maintain the 5-year forecast model. · Review the August 1 budget adoption deadline. Crime Control and Prevention · Continue implementation of the Community Policing initiative. · Establish date for Crime Control and Prevention District election. · Continue City participation in Youth Opporumities United and other youth crime initiatives. Employee Health Care · Address concerns related to employee compensation and benefits, including health insurance. · Work to coordinate Police and Fire health benefits with those of other City employees Economic Development Sales Tax · Establish election date. Storm Water Utility * Reconsider implementation plan for a Storm Water Utility. Packery Channel · Continue quarterly reports on the progress of the TIF and Beach Restoration Project. Landfill * Continue to evaluate the efficiency and effectiveness of operations. · Examine alternatives for solid waste management system, including privatization. Internet · Continue regular updates and expansion of the City's web site, including individual council member web pages. · Establish target date for online permitting process. · Communicate brush pickup via e-maiL CDBG · Continue active role. Frost Bank Buiidine · Lease and complete renovation Annexation Plan · Implement current island annexation plan ADA Transition Plan · Develop and approve ADA Transition Plan ~vithin 90 days. Redistricting · Develop Council-approved redistricting plan for the City of Corpus Christi Industrial District Contract · Review Industrial District contracts and determine date for approval Council Action Items · Staff completes action requests in a timely manner. City / County Health Issues · Continue discussions with County to determine structure and process for the most effective and efficient delivery of health services Marketing of CC Museum and Columbus Ships · Continue to develop marketing plans for the Museum of Science and History and the Columbus Fleet NEW PRIORITY INITIATIVES AND ISSUES City staff will develop and present to City Council action/implementation plans for the following priority Desalination Pilot Project *Code Enforcement in Trashy Neighborhoods *Employee Classification Study Ma ster Drainage Plan ~-. Garwood Water *New Golf Course *Charter Revision with Specific Charge(s) *More Funding for Economic Development *Fire and Police Contracts New Funding Sources / Plan for Inner City Improvements [~ Improve Permitting Process (online / customer service) Padre Island Development Plat,. Downtown / South Central Development Plan (marina, t-heads, breakwater) Housing Emphasis / Process (older neighborhoods, working class neighborhoods) -- **Road Projects Southside Traffic Plan Relationships with Other Governments Development Initiative Packages *Park Rehabilitation *Leopard Street Curbs and Gutters Economic Development S~manait and Post-Summit Meetings Agnes-Laredo Corridor Market (studies, plans) *Solid waste / Pickup Base Closures **Northwest Library Northside Development Plan Traftie Controls (channeling, studying on/offmmps on SPID) *Five Points Ambulance Effluent Plan for Leopard Medians RTA--Public Improvements Arts and Sciences Park Plan Budget Item ** Capital Improvement Program Item M1NUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting January 22, 2002 2:00 p.m. PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Brent Chesney Council Members: Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott Ci_ty Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Recording Secretary Rachelle Parry ABSENT John Longoria Mayor Neal called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Rev. Harold E. Palmer Jr. and the Pledge of Allegiance to the United States flag was led by Council Member Noyola. City Secretary Chapa called the roll and verified that the necessary quorum of the Council and the required charter officers were present to conduct the meeting. Mayor Neal called for approval of the minutes of the joint and regular Council meetings of January 15, 2002. A motion was made and passed to approve the minutes as presented. Mayor Neal referred to Item 2 and the following board appointment was made: Civil Service Board/Commission Aurelio "Ray" Valdez Mayor Neal deviated from the regular agenda and opened discussion on Item 10, neighborhood improvement efforts by the Moody High School Civic-Minded Students. Mr. Danny Noyola, Moody government teacher and sponsor of that organization, explained that the students had presented information to the Council on November 13, 2001, and the Council had indicated its interest in passing a resolution supporting their efforts. Ms. Crystal Chavez reviewed the activities of the Moody Civic-Minded Students, which included the Moody community convention in October 2000. At that event, the Moody community preamble and slogan were established. The students also organized a voter education and registration project and authored a declaration of interdependence, which focused on a world-class health/science academy, police substation, street and drainage improvements, and parmerships between businesses, Minutes - Regular Council Meeting January 22, 2002 Page 2 education centers, and social service agencies. The students produced a video demonstrating the need for improvements in the Sunnybrook and Manshiem areas, which received a CDBG grant for design of that project. Ms. Chavez said that on September 7, 2001, a new document called the "Declaration of Improvement" was presented to the Moody and city-wide PTA organizations. Ms. Audree Ar/as said this school year the Moody Civic-Minded Students researched neighborhood improvement plans from various cities in an effort to begin a well-structured planning process for the westside community. She said they would like to conduct a neighborhood improvement planning convention for the areas of Cunningham, Martin and South Park middle schools. She said they hope to establish a web site to keep citizens informed about how they can contribute to the process. City Secretary Chapa polled the Council for their votes as follows: I 0. RESOLUTION NO. 024741 Resolution expressing the City Council's support for the Foy H. Moody High School students' efforts to promote neighborhood improvement. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Mayor Neal called for consideration of the consent agenda (Items 3.-7). Comncil members requested that Item 5 be discussed. There were no comments from the audience. City Secretary Chapa noted that Item 7.b. needed to be amended. He then polled the Council for their votes: 3. M2002-030 Motion authorizing the City Manager or his designee to execute an amendment to an engineering services agreement with BHP Engineering and Construction Inc. in the amount of $95,565 for the O.N. Stevens Water Treatment Plant chemical storage and feed system addition and upgrade, Part 2. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 4. ORDINANCE NO. 024735 Ordinance approving $3,490.04 (from James A. Dodson and Karen K. Dodson) as developer's contribution for in-lieu-of half street construction of a portion of cul-de-sac of University Drive (with supporting public utility infrastructure), as required by development of Lots 3A and 3B, Block 3, Ocean Drive Addition; and establishing a separate sub-account Minutes - Regular Council Meeting January 22, 2002 Page 3 for said half street in the City interest-bearing account in the Infrastructure Trust Fund for deposit of developer's contribution; and restricting said monies for completion of "improvements" at time of platting and development of properties directly adjacent to and abutting the secured "improvement" opposite Lots 3A & 3B, Block 3, Ocean Drive Addition. An emergency was declared and the foregoing ordinance passed as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 6.a. M2002-032 Motion to amend ordinance prior to second reading by deleting Section 3 which states that the ordinance would not be effective until the General Land Office approves such. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 6.b. ORDINANCE NO. 024736 Ordinance amending the City of Corpus Christi, Texas, Dune Protection and Beach Access Plan, an element of the City of Corpus Christi Comprehensive Plan, by revising the provisions relating to beach user fees. The foregoing ordinance passed on second reading, as amended, as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 7.a. M2002-033 Motion to amend prior to second reading by deleting the words "operating vessels in surf' in the caption of the ordinance. The foregoing motion passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 7.c. ORDINANCE NO. 024738 Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 33, Offenses and Miscellaneous Provisions, regarding curfews on beaches; providing for penalties. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 7.d. ORDINANCE NO. 024739 Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 36, Parks, Minutes - Regular Council Meeting January 22, 2002 Page 4 Recreation, Cultural and Leisure Time Activities, regarding curfews and alcoholic beverages in gulf beach parks; providing for penalties. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. 7.e. ORDINANCE NO. 024740 Ordinance amending the Code of Ordinances, City of Corpus Christi, Chapter 38, Peddlers, Vendors, Itinerant Merchants and Solicitors, regarding park and beach vendors; providing for penalties. The foregoing ordinance passed on second reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Mayor Neal opened discussion on Item 5, Fire Department medical director. Council Member Garrett said he does not doubt that Dr. Blanchard is qualified for this position and he asked if any other doctors were interviewed. Fire Chief J.J. Adame replied that they were not. Mr. Garrett said he is aware of at least one other doctor who is interested in the position of medical director. Chief Adame said Dr. Blanchard currently serves as the Emergency Department Medical Director for Christos Spohn-Memorial, which is the trauma facility for the 12-county region. He said Dr. Blanchard has emergency room experience and he has demonstrated an interest in the Corpus Christi Fire Department and EMS Service by accompanying medics in the field. The Chief said he is confident that Dr. Blanchard will serve the department well. Council Member Kelly said he was curious as to how Dr. Blanchard was chosen for the position. He asked what will be expected of him for $30,000 per year. Mr. John Murray, EMS Director, said that since the city's EMS Department is an advanced life-support provider, it is required to have medical direction. He said that constitotes developing and approving protocols and allowing the medics to function under his license. Mr. Kelly said although he does not know if it is the same man, he recalls seeing an article about a man named Dr. Blanchard who made disparaging remarks about Corpus Christi residents. He said he thinks other doctors who are interested in the medical director position should have an opportunity, to apply. Mr. Murray said he has worked with Dr. Blanchard for about two years and the department sends all of its students to Chrisms Spohn- Memorial. He said Mr. Kelly's reference does not sound like the Dr. Blanchard that he knows. Council Member Noyola questioned the process for selecting the medical director. City Manager Garcia said there is not an established process as there is for selecting architects and engineers. Rather, for this position they relied not only on the recommendations of the people who work most closely with him, such as the medics, but also on his experience and reputation in the community. Mr. Noyola asked if the Corpus Christi Firefighters Association was informed about the proposal to recommend Dr. Blanchard. ChiefAdame replied that all the responses he received were Minutes - Regular Council Meeting January 22, 2002 Page 5 favorable. Mr. Gamia added that this position is not competitively bid and staff did not solicit doctors who wanted to serve for the position. He said this position has very stringent requirements and there are few people who can meet them. Council Member Kinnison asked if there was a deadline for selecting the medical director. Mr. Murray replied that the contract of the current director, Dr. Richard Davis, is due to expire on January 31, 2002. However, Dr. Davis said he can extend his contract for a period if necessary. Mr. Kinnison said two of the Council members had concerns and he questioned whether more time was needed in the selection process. Mr. Noyola said he supports Dr. Blanchard but he was curious about the process. Responding to Council Member Colmenero, Chief Adame reiterated that he feels comfortable recommending Dr. Blanchard. Mr. Colmenero said he feels the Council members' concerns need to be addressed. City Secretary Chapa polled the Council for their votes as follows: 5. M2002-031 Motion authorizing the City Manager or his designee to execute a contract with David E. Blanchard, D.O., to serve as the Medical Director for the Corpus Christi Fire Department for a two-year period at an annual rate of $30,000. The foregoing motion passed, as amended, by the following vote: Neal, Chesney, Colmenero, Kinnison, Noyola, and Scott voting "Aye"; Garrett and Kelly voting "No"; Longoria absent. Mayor Neal opened discussion on Item 7.b., activity on beaches. City Manager Garcia explained that currently there is a three-day limit for camping on the beach. He said staff realized that there are occasions where people will want to camp for longer than three days at a time, particularly during spring break and during the summer. Therefore, staff was recommending amending the ordinance to make that change. Council Member Kinnison made a motion to amend Item 7.b. with the language recommended by staff, seconded by Council Member Colmenero, and passed. City Secretary Chapa polled the Council for their votes as follows: 7.b. ORDINANCE NO. 024737 Ordinance mending the Code of Ordinances, City of Corpus Christi, Chapter 10, Beachfront Management and Construction, regarding animal control, beach festivals, beach vendors, bonfires and campfires, camping, glass containers, and traffic control on Gulf of Mexico beaches; providing for penalties. The foregoing ordinance passed on second reading, as amended, as follows: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Minutes- Regular Council Meeting January22,2002 Page 6 Mayor Neal referred to the presentation (Item 8), an update on Solid Waste Services' automated collection program, municipal solid waste system service charge (MSWSSC), and permitting process. Mr. Jeffrey Kaplan, Solid Waste Services Director, explained that the automation program began on November 1,2001 with 46% of the city receiving automated service. He said 33,928 carts were delivered in three route areas. He said now that the program is fully implemented, they will be increasing the number of stops per route and reducing the number of routes, which he explained. He also discussed the manual, ADA, backdoor, and alley routes as well as ways to utilize the carts in the automated program to their fullest. He said additional carts are available for a fee. With regard to the permitting process, Mr. Kaplan said that staff has issued a total of 140 permits and the majority of large haulers and self-haulers have complied with the new ordinance. This year staff intends to enforce the ordinance provisions by citing non-permitted haulers, collecting unpaid service charges, and auditing questionable accounts. Mr. Kaplan reviewed charts of the total tonnage at the J.C. Elliott Landfill for BFI, Frontier, C.C. Disposal, and other contracted haulers. He also discussed a comparison of tonnage for FY 2001-02 and MSWSSC revenue, of which actual amounts are matching projected amounts. Mr. Kaplan said when he arrived, the department had a high accident rate and he l:blt it was necessary to develop a safety manual for all Solid Waste employees specifically tailored to their positions. He said that manual will be distributed as each of the employees receive individual training m the next few months. In addition, SWS staff will continue to review and monitor tl~e ordinance and thc rate fees and finalize the strategic plan. Mayor Neal asked Mr. Kaplan to provide the C~uncil with quarterly updates. C. onncii Member Noyola asked why there is a difference in trash pick-up times on a T~shaped sh~cet. Mr. Kaplan explained that due to constraints in the turning diameter of certain streets and cul.- de-sacs~ the side-loading vehicle is only able to pick up certain containers; consequently, the rear- ioading vehicle must complete the route~ Another explanation is that the carts on the opposite side of the street are picked up at the end of the driver's route. City Manager Garcia pointed out that Item 9 on the day's agenda is a proposal to allow SWS vehicles to travel against traffic on one-way streets in order to pick up trash with the side-loading vehicles. Mr. Garcia said staff can provide more information about the specific street Mr. Noyola was asking about. Council Member Colmenero said people are beginning to do their spring cleaning and piles of debris are forming. He asked if staff had thought about using the large trash containers as recycling containers. Mr. Kaplan said staff can look into possibly using 35-gallon or 65-gallon containers (rather than the 96-gallon one). With regard to debris piles, Mr. Kaplan and Assistant City Manager Ron Massey said staff will continue to educate citizens about services that are available, such as the free bulk item pick-up scheduled in April and October and special pick-ups (at a cost of $48 plus tax). Council Member Scott complimented SWS staff for their hard work. Council Member Kinnison asked what feedback management has received from the SWS employees themselves about the changes. Mr. Kaplan replied that in the beginning many workers were frustrated and there was a lot of negative feedback; however, the feedback has become positive Minutes - Regular Council Meeting January 22, 2002 Page 7 as they educate citizens and they, in turn, comply with the automated program. Mr. Kinnison also asked about voluntary compliance with the permitting process. Mr. Kaplan said he thought the compliance was excellent through November and now the permitted haulers are expecting city staff to begin enforcing the ordinance for non-permitted haulers. Mr. Kinnison asked when the Council will receive an update on future operational plans for the Elliott Landfill and the new Cefe Valenzuela landfill. Mr. Kaplan said that the consultant sent staff their first draft a few weeks ago but it only contained three options. He said he has asked them to consider three more options which will be brought to the Council in the spring before the budget process begins. Mayor Neal opened discussion on Item 9, solid waste vehicles on one-way streets. There were no comments from the audience. City Secretary Chapa polled the Council for their votes: 9. FIRST READING ORDINANCE Ordinance amending Section 53-99, Operation of Trucks, Trailers and Other Heavy Vehicles Restricted on Certain Streets, of the Code of Ordinances, City of Corpus Christi, to allow automated solid waste vehicles to travel against traffic on one-way streets to collect from City-provided garbage carts; providing for penalties. The foregoing ordinance passed on first reading by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Mayor Neal opened discussion on Item 11, delinquency prevention grant. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 11. RESOLUTION NO. 024742 Resolution authorizing the City Manager or his designee to apply to the Criminal Justice Division of the Governor's Office for a one-year $250,000 Title V delinquency prevention grant to enhance Municipal Court processing and tracking of status offenders and Juvenile Assessment Center case management services to at-risk youth. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Mayor Neal opened discussion on Item 12, juvenile crime reduction. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting January 22, 2002 Page 8 12. RESOLUTION NO. 024743 Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $164,292 to the State of Texas, Office of the Governor, Criminal Justice Division for funding eligible under the FY2001 Juvenile Accountability Incentive Block Grants Program to fund a program to reduce juvenile crime and establish interagency information sharing programs. The foregoing resolution passed by the following vote: Neal, Chesney, Colmenero, Garrett, Kelly, Kinnison, Noyola, and Scott voting "Aye"; Longoria absent. Mayor Neal opened discussion on Item 13, civilian union. He called for public comment. Mr. Mark Pitt, representing the United Steel Workers of America (USWA), said he had union authorization cards signed by over t,000 ciD- employees as well as a data base with that information. He said the newly elected officers of the Corpus Christi Association of City Employees (CCACE) have spoken with some of the Council members and the Mayor. Mr. Pitt said the proposed union activities policy (HR 30) does not contain any processes that did not already exist before November 13, 2001 (when the first union discussion took place). He said l:e is not sure if the provision in the policy regarding certification of the union requires that it have a certain number of members before it has the right to represent employees. He said if that is the case, union representatives feel that is a violation of Texas law. Mr. Pitt said the proposed policy regarding payroll deduction of union dues (HR 3 t ] states that employees would have to sign a new petition, which would have to represent 30% oft~e non- management civilian employees (approximately 600 employees). He said that amouut is almost 2 ½ times higher than any other city in the state. Mr. Pitt said the policy also requires that employees sign other documents as well and he said the policy contains a revocation clause that violates the Texas Local Government Code. He said this has been a long, drawn-out process, noting that on November 13, 2001, five Council members approved "dues check-oW' for union membership. (However, that issue was brought back on November 20, 2001 due to a concern about the posting for that item and it was tabled until January 22, 2002.) Mr. Pitt said the union rejects the policy as it is written. Mr. Robert Shake said he is a member of Local 278 Intemational Brotherhood of Electrical Workers and president of the Coastal Bend Labor Council, an organization of all the unions in this area. He said he believes some of the Council members have not experienced the benefits of union membership. He urged them to pass Item 13.a. and a reasonable Item 13.b. so that city employees can be unionized to improve their working situations. Ms. Susie Luna Saldafia said she is a member of the American Federation of Teachers and the American G.I. Forum, Felix Longoria Chapter. She said unions are strong in Corpus Christi and have been involved in all aspects of the community. She also said that the role of unions is not to Minutes-Regular Council Meeting January22,2002 Page 9 create animosity between employers and employees. She added that the Council members are supposed to represent the needs of their constituents. Mr. Stan Wilt said he is the newly elected president of the CCACE, located at 102 S. Staples Street. He said the proposed policies are totally biased toward management, adding that CCACE representatives need to be included in the development of union policies. He urged the Council to stand by their November 13th vote and let the union members proceed with dues check-off. He said they would be willing to poll the Council members' constituents to determine their attitude about the union. Mr. Buck Sosa said he served as a firefighter for 32 years. He noted that in 1973 city employees were involved in the collective bargaining movement but they still have not received the benefits of that effort. Mr. Danny Noyola Jr., 4410 Acushnet, said that November 13th was a historic day because the Council voted 5-4 to approve dues check-off for union members. He encouraged the Council to show the same equality to city employees as is shown to people who participate in United Way and the fire and police unions. Mr. Mike Zepeda said he is a member of the United Steel Workers of America, which has benefitted members in many ways, including participating in the 1968 suit against CCISD. He implored the Council to allow city employees to make their own choices and he asked them to not force city employees to seek relief through the courts. Ms. Mary Helen Salazar, President of LULAC Council No. 1, said they passed a resolution in support of the CCACE. She said she is glad the Moody Civic-Minded Students are present to see how the system works. She said the Council members are voting on behalf of their constituents. Mr. Jack Gordy, 310 Norton St., said the city employees are asking the Council to allow them to have dues check-off as is done for fire and police employees. He said it appears that union representatives were not involved in the development of the proposed policies. Ms. Mafia Gonzales, 1813 Amazon, said that on November 13th Mayor Neal said he would do the right thing and she encouraged him and Council Member Garrett to keep that promise. Ms. Becky Moller, 7217 Sparkle Sea Dr., said she became involved with city employees 30 years ago in their efforts to unionize. She said the Saturn automobile plant did not locate in Corpus Christi because it was not a progressive city. She said city employees are only looking for dignity and to have a voice in the workplace. Mr. Paul Vasquez, Texas State Field Director for the National AFL-CIO, said he is a former Council member in Flint, Michigan. He said the poorest workers are farm workers and city employees, and the former have dues check-off while the latter do not in Corpus Christi. He said the proposed policy is anti-union and he asked the Council to do what is fair. Minutes - Regular Council Meeting January 22, 2002 Page I0 Mr. David Noyola, Nueces County Commissioner, said the union members are only asking to have true representation and to use their money as they wish. He said the Council needs to work as a team to promote Corpus Christi. He added that they need to unite the community and to remember that employees are the backbone of the city. Mr. Leon Perez, 904 Buford, asked the Council why they am persisting in getting involved in the city employees' business. He added that the City Manager gave the Council an increase in their car allowance reimbursement. Mr. Phil Rosenstein said there is nothing that prevents the Council from giving dues check- off to city employees. He said unions a~d management can work together and he asked the Council to allow the employees to use their money as they wish. He said the employees earn their pay and deserve citizens~ respect. Mr. Carlos Torres, President of the Corpus Christi Firefighters Association and Vice President of the Coastal Bend Labor Council, said he decided to help out the city employees because he believes it is the right thing to do, especially when the USWA became involved. He congratulated the CCACE for its recent elections. Mr. Torres commented that many grievances are dealt with internally. He also discussed the efforts of police and fire union members both during the September 1 lth terrorist attacks and following them, and he exhorted the Council to approve Item 13.a. and to forward Item 13.b. to a conm~ittee consisting of city employees and staff to develop a better policy. Mr. Danny Noyola said he has publicly supported dues check-off. He commented on how the Moody Civic-Minded Students are learning the necessary skills to participate in the political process. He also quoted from the first fi~w words of the Premnble to the U.S. Constitution. Mayor Neal made a snbstitute motion for Item 13.a.: a) that the motion approved November 13, 2001 regarding Item 16 on the Council's agenda is rescinded; b) that the implementation policy submitted by the City Manager as to payroll deduction of union dues is rejected; and c) that City of Corpus Christi policy is established thai them will be no payroll deduction in payment of membership dues to an employee association. The motion was seconded by Mr. Kinnison. Council Member Noyola said the Mayoffs substitute motion was not fair and it divides the community. He said city employees are being hurt because of politics. He added that the Mayor had previously stated that he would not tell the employees how to spend their money. Mr. Noyola then made a motion to amend the substitute motion to allow for dues check-off for city employees. Responding to Council members' questions, City Secretary Chapa said the Mayor had a motion on the floor and Mr. Noyola was attempting to amend that motion. He said the Mayor can accept Mr. Noyola's amendment or reject it. Mayor Neal said he did not accept Mr. Noyola's amendment. City Manager Gamia reviewed the actions to date and he restated the Mayor's motion. Mr. Kelly seconded Mr. Noyola's motion to amend. Mr. Chapa polled the Council for their votes on Mr. Noyola's motion and it failed to pass as follows: Colmenero, Kelly, and Noyola voting "Aye"; Neal, Chesney, Garrett, Kinnison, and Scott voting "No"; Longoria absent. Minutes- Regular Council Meeting January22,2002 Page 11 Mr. Chapa polled the Council on Mayor Neal's substitute motion and it passed as follows: 13.a. M2002-034 Motion to adopt the following: a) that the motion approved November 13, 2001, regarding Item 16 on the Council's agenda is rescinded; b) that the implementation policy submitted by the City Manager as to payroll deduction of union dues is rejected; and c) that City of Corpus Christi policy is established that there will be no payroll deduction in payment of membership dues to an employee association. The foregoing motion passed by the following vote: Neal, Chesney, Garrett, Kinnison, and Scott voting "Aye"; Colmenero, Kelly, and Noyola voting "No"; Longoria absent. Mr. Chapa read Item 13.b. as stated on the agenda. Mayor Neal made the following statement regarding Item 13.b.: "The City Manager has provided the Council with a copy of Policy HR 30, which he plans to adopt. As chief administrative and executive officer of the city, it is the City Manager's province to establish proper policies and procedures, consistent with state law, for the fair and productive management of the city's work force. Policy HR 30 would continue present policy which includes grievance procedures and other matters, but does not include meet and confer procedures. Policy HR 30 would continue the City Manager's adoption, amendment, and administration of policies and procedures necessary to carry out his obligation to effectively and efficiently manage the city work force. I believe this to be beneficial to the taxpayers and citizens of Corpus Christi. I move approval of Item 13.b." Council Member Scott seconded the motion. Mr. Noyola made a motion to form a committee consisting of two Council members, CCACE officers, the City Manager and the City Attorney to oversee the policies and procedures and to develop another policy to bring before the Council for their approval. Mr. Noyola's motion died for lack of a second. Mr. Chapa polled the Council for their votes on Item 13.b. as follows: 13.b. M2002-035 Motion directing the City Manager to adopt a personnel policy on union activities. The foregoing motion passed by the following vote: Neal, Chesney, Garrett, Kinnison, and Scott voting "Aye"; Colmenero, Kelly, and Noyola voting "No"; Longoria absent. Mayor Neal announced the executive session (Item 14), pursuant to Texas Govemment Code Sections 551.071, 551.072 & 551.087 to discuss and deliberate commercial or financial information from a business prospect, Singapore Technologies, that the City Council seeks to have locate in or near the City and to deliberate the offer of financial or other incentives in connection therewith, with possible discussion and action in open session. The Council went into executive session. The Council returned from executive session. Minutes - Regular Council Meeting January 22, 2002 Page 12 Mayor Neal called for the City Manager's report. Mr. Garcia said the department head retreat will be held on January 25 and 26 at Port Royal Condominiums. He said they will be reviewing the five-year forecast, budget issues for the coming year, and department priorities. Mayor Neal commented on the successful Leopard Street improvement project. Mr. Kelly added that there was a productive meeting with the Metropolitan Planning Organization and the Texas Department of Transportation to set additional priorities (FM 624 and County Road 52 and Rand Morgan as a second priority). He said a long-term project is to address the interchange of Hwys. 77 and 37 and FM 624. Mr. Chesney said his request to address drainage issues on Chenoweth Street had been removed from the list of Council concerns and he asked that it be placed back on the list. He also announced that a town hall meeting will be held on January 31st at Ray High School to be hosted by Mr. Garrett, Mr. Colmenero and himself. Mr. Kinnison said the Council has received form letters from people tlu'oughout the country about the city's animal control facility. He suggested that rather than respond to those form letters from non-Corpns Christi residents, staff could concentrate on addressing concems at that facility. Mr. Kelly said he thought the city was in the process of conducting an assessment of city employees' compensation. Mr. Garcia said the Council approved a compensation and classification study because city employees' salaries have fallen behind the market due to budget shortfalls and deferred raises. He said the study is currently underway and staff intends to begin making recommendations on adjusting a number of employees' salaries in the next budget cycle. He said this is separate from merit raises that will be discussed in the budget. Mr. Kelly asked if the administration is dedicated to trying to improve the situation of the rank and file. Mr. Garcia said they are committed to doing that. Mr. Scott referred to a memo regarding traffic signal recon~nnendations and he asked about the warrants for such intersections as McArdle and Nile. Mr. Massey said a combination of criteria are used, although accident history (especially fatalities) is very important. He said the Traffic Engineer will make a recommendation on how the projects should be prioritized, which will be brought to the Council for final discussion and adoption. Mr. Scott also asked about the status of the Rodd Field industrial park project. Mr. Kinnison said it is proceeding very slowly. Mr. Massey said the city hired an engineering firm to begin getting estimates. Mr. Kinnison asked for a time table for that project. Mr. Scott said he thinks the city beaches look very good. He also commended staff for their response on the use of some golf fees and he asked about golf cart fees. Deputy City Manager Noe said the Council will receive a memo about a new single rate during off-peak periods. Mayor Neal called for petitions from the audience. Minutes - Regular Council Meeting January 22, 2002 Page 13 Mr. Jack Gordy, 310 Norton St., asked the Council to review the city's contract with Prince Catering, which runs a small food establishment on the sixth floor of City Hall. He said that on November 19, 2001 the Health Depa~hnent conducted an inspection of the business and it failed the inspection. Mr. Gordy said he went there today and the conditions are the same. He said the business should be an embarrassment to City Hall. Mr. Jose Marroquin, 2433 Allencrest, said he provided the Council with written information about a situation surrounding a woman's utility bill with which he became involved. He said that during last week's meeting, stafftold the Council that there is a delay between when a customer's utility bill becomes overdue and when his service is disconnected. However, he said in that woman's case, her service was cut off on the very same day she received her second bill. Assistant City Manager Jorge Cruz-Aedo explained that ifa customer receives his bill on the first of the month, for example, he has 17 days to pay it. If the bill is not paid, the customer receives a second notice saying the bill is delinquent. If the bill is still not paid, the next month's bill is sent out on the first showing a past due amount and the current balance. If payment is again not made, a second delinquent notice is sent 17 days later which states that the customer is subject to having his service disconnected. He emphasized that the city has fairly large thresholds for disconnecting service. Mr. Garcia said if there is a circumstance such as the one referred to by Mr. Marroquin, the city often makes arrangements with customers so they can pay their bills. However, staff only makes those arrangements with the customers themselves and not with a third party. Mr. Cruz-Aedo said he is not familiar with the circumstances of the woman whom Mr. Marroquin was assisting. Mr. Kinnison asked staff to look at this particular situation and provide information. Mr. Kelly said he has heard of similar situations occurring. At the request of Mr. Garcia, Mr. Cruz-Aedo explained that approximately three years ago, the city upgraded its utility billing system. During the transition from the old system to the new one, the city suspended disconnects so customers would not be inadvertently affected. However, during that period delinquent accounts jumped to around 8,000 to 9,000 out of 85,000 customers for a total amount of about $2 million. Over the last year staff has been working to reduce those numbers and the last report showed about 3,000 delinquent accounts. Mr. Garcia said the Council acts as the board of the municipally owned utility, and staff tries to implement reasonable management policies to ensure equitable treatment and fair prices for customers. Mr. Roland Garza said Mr. Marroquin called him about the woman's situation so Mr. Garza called and then came to the Utility Billing Office. He asked a staff member how many warnings are given to a customer before he is disconnected and the response was zero. He said he believes there is a lack of communication between management and staff that needs to be addressed. Mr. J.J. Ramirez, 1210 Tenth St., said he is also uying to assist the woman referred to by Mr. Marroquin so he did research on the issue. Mr. Ramirez said he came to City Hall and asked what would happen if he was not able to pay his bill for a variety of reasons. He was instructed to call the Minutes - Regular Council Meeting January 22, 2002 Page 14 customer service number and was told that he would be given time to pay his bill. He said he was short of cash and he had to take out a loan to pay his bill, but some people are not able to do that. He asked if there is a written policy regarding utility bills. Mr. Cruz-Aedo said Mr. Ramirez seemed to be asking two questions. First, a written notice is given to the customer that if his bill is not paid, he is subject to disconnect after a certain date. Second, the ordinance that establishes the utility rotes spells out the policy that staff is to follow. He added that the internal policy is more lenient than the one in the ordinance. Mayor Neal asked if it is possible for a customer to have his due date changed and Mr. Cruz-Aedo said it is. Mr. Garcia emphasized that a customer's service will not be disconnected unless he is more than two months late in paying. There being no further business to come befure the Council, Mayor Neal adjourned the Council meeting at 5:15 p.m. on January 22, 2002. AGENDA MEMORANDUM DATE: January 29, 2002 SUBJECT: Odor Control Improvements at various Lift Stations Rehabilitation Improvements at the Allison Wastewater Treatment Plant. AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute Amendment No. 1 in the amount of $395,020 with Urban Engineering for Odor Control Improvements at the Allison Wastewater Treatment Plant Lift Station, the Arcadia Lift Station and for the Rehabilitation Improvements at the Allison Wastewater Treatment Plant. ISSUE: The City's odor control program for the existing wastewater collection and treatment system needs to be continued. Improvements are needed at the Allison Wastewater Treatment Plant to maintain permit water quality in accordance with the Environmental Protection Agency and Texas Natural Resource Conservation Commission. FUNDING: Funds for this project are available in the FY 2001-2002 Sanitary Sewer Capital Projects Fund. RECOMMENDATION: Staff recommends approval of the motion as presented. Foster Crowell Wastewater Superintendent Angel R. Escobar, P. E. Director of Engineering Services Additional Support Material: Exhibit"A" Background Information Exhibit "B" Contract Summary Exhibit"O" Location Maps AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION SUBJECT: Odor Control Improvements at various Lift Stations (#7115) Rehabilitation Improvements at the Allison Wastewater Treatment Plant (#7162) PRIOR COUNCIL ACTION: 1. February 15, 2000 - Motion authorizing the City Manager, or his designee, to execute an engineering services agreement with Urban Engineering for a total fee not to exceed $161,780 for the Odor Control Improvements at: · Wooldridge Road Lift Station; · Williams Drive Lift Station; · Everhart Road/Staples Street Lift Station; · Country Club Area Lift Station; · Laguna Madre Wastewater Treatment Plant; and · Allison Wastewater Treatment Plant; and for the Rehabilitation Improvements at the Allison Wastewater Treatment Plant (Motion No. M2000-048). 2. Au.qust 22, 2000 - Ordinance approving FY 2000-2001 Capital Improvement Budget (Ordinance No. 024162). 3. January 15, 2002 - Ordinance approving FY 2001-2002 Capital Improvement Budget (Ordinance No. 024730). PRIOR ADMINISTRATIVE ACTION: None FUTURE COUNCIL ACTION: Approval of construction contracts to complete the necessary projects. PROJECT BACKGROUND: A. ODOR CONTROL: The City has implemented an odor control program for the existing wastewater collection and treatment system, which consists of: 1. injection of the chemical ferrous sulfate at various points throughout the collection system; 2. construction of chemical air scrubbers at the Oso Wastewater Treatment Plant and Whitecap Wastewater Treatment Plant; and 3. construction of a biofilter system at the Greenwood VVastewater Treatment Plant. Continuation of the odor control program is necessary for optimal efficiency of odor control at the City's lift stations and wastewater treatment plants. EXHIBIT "A" Page 1 of 2 B. REHABILITATION IMPROVEMENTS AT THE ALLISON WASTEWATER TREATMENT PLANT: Wastewater entering the Allison Wastewater Treatment Plant vades widely in composition and strength and increased flows are periodically greater than what the plant was originally designed for. A higher than acceptable level of plant upsets and permit violations have occurred in the past. The plant was originally constructed in 1965 at a capacity of 2.0 million gallons daily (MGD) and in 1984 the plant was expanded to an average daily flow capacity of 5 MGD. in October 2001, a report was completed that: · evaluate the plants historical infiuent data, · resolve operational issues, · optimize operations, · improve treatment reliability, and · evaluate space requirements for future expansion. It was determined that future plant expansion to 7.5 MGD is recommended to be under construction by FY 2013. PROJECT DESCRIPTION: The consultant contract provides for the design and construction of odor control facilities at the Allison Wastewater Treatment Plant and the Amadia Lift Station. This is a continuation of the project original approved for study of latest odor control techniques in February 2000. The consultant will also provide design and construction services for specific items selected from the Stage 1 - Engineering Report prepared for the Allison Wastewater Treatment Plant. The report was prepared in 2001 to evaluate the existing plant capabilities, determine operational problems and make recommendations for modifications and rehabilitation of the existing plant. A contract summary is attached (see Exhibit "B"). CONTRACT SUMMARY/FEE: A contract summary and fee is attached as Exhibit "B". EXHIBIT "A" CONTRACT SUMMARY Odor Control Improvements at various Lift Stations Rehabilitation Improvements at the Allison Wastewater Treatment Plant SCOPE OF PROJECT: Odor Control Improvements at various Lift Stations (#7115) Rehabilitation Improvements at the Allison Wastewater Treatment Plant (#7162 ) STAGE 2 PART A: Odor Control - Various Lift Stations and Allison Wastewater Treatment Plant (Project No. 7115) 1. Allison WWTP Odor Control System: Construct blower facility to remove air from plant lift station and transport the air via pipeline to a new biofilter odor control unit for treatment. 2. Arcadia Lift Station Odor Control System: Construct blower facility to remove air from lift station and transport the air via pipeline to a new biofilter odor control unit for treatment. PART B: Allison Wastewater Treatment Plant Rehabilitation and Other Modifications (Project No. 7162) 1. Air System Piping Replacement: Construct new above ground air piping system to replace the buried and leaking existing air piping. 2. Dewatering Building Improvements: Expand the existing building and replace the two existing belt presses and provide new polymer system. Building expansion will also provide for a new climate controlled office. 3. New Automatic Backwash Filter: Construct new automatic backwash filter to provide additional treatment for the effluent between the existing Final Clarifiers and Chlorine Contact Chamber. 2. SCOPE OF SERVICES Urban Engineering will perform all engineering services necessary to review and prepare plans, specifications, and bid and contract documents; and provide contract administration services to complete the Project. Work will not begin on Additional Services until written authorization is provided by the Director of Engineering Services. IEXHIBIT "B" Page 1 of 3 3. PROJECT SCHEDULE PROPOSED PROJECTSCHEDULE I Begin TWDB Environmental Report February 6, 2002 Friday TWDB Report Approval Apdl 5, 2002 Friday Begin Stage 2 Services April 5, 2002 Friday 60% Submittal July 19, 2002 Wednesday City Review Complete August 14, 2002 Wednesday 90% Submittal October 16, 2002 Friday City Review Complete November 15, 2002 Friday 100% Submittal January 3, 2003 Friday City Review and Approval February 7, 2003 Monday (3) Advertise for Bids February 24, 2003 Monday Pre-Bid Conference March 10, 2003 Wednesday Receive Bids April 2, 2003 Tuesday Contract Award April 15, 2003 Monday Begin Construction May 19, 2003 Friday Construction Completion To Be Determined 4. FEES Fee for Basic Services. The City will pay the Engineer a fixed fee for providing for all "Basic Services" authorized as per the following table. The fees for Basic Services will not exceed those identified and will be full and total compensation for all services outlined above, and for all expenses incurred in performing these services. For services provided, Engineer will submit monthly statements for basic services rendered. The statement will be based upon Engineer's estimate of the proportion of the total services actually completed at the time of billing. The statement will be based upon the percent of completion of the construction contract. City will make prompt monthly payments in response to Engineer's monthly statements. Fee for Additional Services. For services authorized by the Director of Engineering Services, the City will pay the Engineer a not-to-exceed fee as per the allowance shown in the following table. Page 2 of 3 HWWBVELWA EWWA TEWAT7115WMENWEW 1WMENO ENT ODOR CONTROL - LIFT STATIONS, LAGUNA MADRE WWTP, ALLISON WWTP (Project No. 7115) ALLISON WWTP REHABILITATION AND OTHER MODIFICATIONS (Project No. 7162) SUMMARY OF FEES AMENDMENT NO. 1 ----------------------------- ORIGINAL Arcadia L. S. --------------Allis--------------------Tota------ Allison WWTP Allison WWTP Total TOTAL CONTRACT Odor Control Odor Control Rehab Amendmt. REVISED 7115 7115 7162 No.1 FEE Basic Services Stage 1 1 Engineering Report(s) $135,380.00 $0.00 $0.00 $0.00 $0.00 $135,380.00 Stage 2 2 Design Phase 0.00 9,700.00 25,400.00 130,300.00 165,400.00 165,400.00 3 Bid Phase 0.00 650.00 1,700.00 8,650.00 11,000.00 11,000.00 4 Construction Phase 0.00 2,900.00 7,600.00 38,900.00 49,400.00 49,400.00 Sub -Total Basic Services 135,380.00 13,250.00 34,700.00 177,850.00 225,800.00 361,180.00 Additional Services Stage 1 1 Archeological Survey 26,400.00 0.00 0.00 0.00 0.00 26,400.00 Stage 2 1 Permitting 0.00 0.00 0.00 0.00 0.00 2 ROW Acquisition Survey 0.00 0.00 0.00 0.00 0.00 3 Topographic Survey 0.00 700.00 700.00 1,640.00 3,040.00 3,040.00 4a Environmental Assessment 0.00 3,640.00 3,640.00 3,640.00 10,920.00 10,920.00 4b Environmental Assessment 0.00 0.00 0.00 10,800.00 10,800.00 10,800.00 5 Inspection Services 0.00 0.00 0.00 128,800.00 128,800.00 128,800.00 6 Start-up Services 0.00 1,600.00 1,600.00 4,560.00 7,760.00 7,760.00 7 Warranty 0.00 800.00 1,100.00 6,000.00 7,900.00 7,900.00 Sub -Total Additional Services 26,400.00 6,740.00 7,040.00 155,440.00 169,220.00 195,620.00 Total Authorized Fee $161,780.00 $19,990.00 $41,740.00 $333,290.00 $395,020.00 $556,800.00 HWWBVELWA EWWA TEWAT7115WMENWEW 1WMENO ENT San Pat County NUECES BAY N CORPUS CHRISTI BAY LEGEND: · = Plant Location · = Lift Station Location A) Allison ~stewate~ Treatment Plant B) Arcadia L~ft Station =ROJECT No. 7115 LOCATION MAP NOT TO SCALE PLANTS AND LIFT STATIONS ClT~ OF CORPUS CHRISTI, TEXAS EXHIBIT "C" CT. TY COUNCIL EXHIBIT DEPARTMENT OF ENGINEERING SERVICES PAGE: I ol' 2 ____--.- DATE: 01/16/2002 LOCATION MAP PROJECT# 7162 Nor ro $cAt£ EXHIBIT REHABILITATION IMPROVEMENTS AT THE o~mcz~ COUNC~Lo~ ~,N~/N,EXH~B~Ts~c~ ALLISON WASTEWATER TR~TBENT P~T PAGE: 2 of 2 C~ OF CORPUS CHRIS~, ~S ~: 01-16-2002 1. ~ I~* AGENDA MEMORANDUM January 29, 2002 SUBJECT: Landside Roadway- Entrance Road and Parking Lot Improvements - CCIA AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute an amendment in the amount of $146,150 with RVE Engineering, Inc. for engineering services associated with Corpus Christi International Airport Roadway and Parking Lot Improvements. ISSUE: The FAA issued new security regulations requiring revision of the Roadway and Parking Lot Improvement plans. A contract must be awarded to revise the construction plans, specifications and contract documents. FUNDING: Funds are available in the Airport CIP Fund. available to reimburse Airports for additional security costs. of this amendment will be eligible for reimbursement. Congress has made funding It is anticipated that the cost RECOMMENDATION: Approval of the motion as presented. Dave Hamrick Director of Aviation ~1 R. Escobar, P.E. ' Director of Engineering Services Attachments: Exhibit A: Background Information Exhibit B: Contract Summary Exhibit C: Map H:\HOME\KEVINS\GEN~AIR\981MPRVN\Iandside\ AEamd6memo,doc ADDITIONAL INFORMATION Background: The reconstruction of the Landside Roadway System and the Parking Lot Improvements were identified as critical CIP projects. The project was designed to accommodate the new Terminal Building design. The schedule for letting the construction of the roadway and parking lot improvements was based on the scheduling requirements associated with the new Terminal. The plans were completed and ready for bidding when World Trade Center was destroyed on September 11,2001. FAA responded with enhanced security requirements. The requirements continued to evolve during the fall of 2001. This included the development of a new agency to address security matters. The uncertainty associated with the new regulations made it: 1. difficult to determine which regulations would be permanent; and 2. how to best modify the roadway and parking lot design to address those regulations. Staff continued to work with FAA and RVE to determine the best way to modify the project design. It was determined that FAA would permit cars to be parked and left unattended within the 300-foot Terminal Building exclusion zone provided they had been inspected and searched by secudty personnel. Based on tills information, a revised preliminary layout was developed and approved by the Airport Board and City Council. The key features of the revised layout were: 1. security checkpoint outside the 300-foot exclusion zone for the short term parking and rent car ready/return lots; 2. installation of additional canopies across the short term parking lot; 3. modification of roadway and drainage to accommodate the security modifications; 4. additional landscaping; and 5. deferral of the entrance road to a future phase. Implementation Schedule: Final plans, specifications, bid and contract documents will be delivered by March 29. It is anticipated that the construction contract will be awarded during the month of May 2002. Prior Council Action: ~ - Motion authorizing the City Manager to execute a contract in the amount of $129,000 with RusselI-Veteto Engineering, Inc. (M98-088). ~,Lq~,~L;~ - Resolution approving the financial feasibility plan to fund the 5-Year Capital Improvement Program for CClA, including the Terminal Reconstruction program (Res. 023426). March 30. 1999 - Approval of recommended Terminal Reconstruction and Landside Development concept at CCIA (M99-089). July 20. 1999 - Adoption of the Capital Budget (Ord. 023703), including Landside Roadway Exhibit A Page 1 of 2 System - Entrance Road and Parking Lot Improvements projects (Airport ClP Projects No. 7 & 10). November 30. 1999 - Motion approving Amendment No. 2 with RVE, Inc. in the amount of $385,000 for engineering services associated with the roadway/parking lot improvements (M99-414). D emb r 18 1 - Approval of the roadway/parking lot design for Corpus Christi International Airport (M2001-482). Prior Administrative Action: Jun 2e~.~1_,9.~ - Approval of Amendment No. 1 to the contract with RusselI-Veteto Engineering, Inc. to reduce construction phase services and the authorized contract fee by $5,400 for a new total of $123,600. J~JDJ~.~ - Approval of Amendment No. 3 with RVE, Inc. in the amount of $6,965 for investigation of additional parking lot lighting. J~;P~IJ~,~ - Approval of Amendment No. 4 with RVE, Inc. in the amount of $14,990 for revision of the construction phasing plan. January 17.2002 - Approval of Amendment No. 5 with RVE, Inc. in the amount of $24,177.62 for preparation of conceptual alternatives and presentation materials to address revised FAA security requirements. Future 1. 2. 3. 4. 5. Council Action: Award of a construction contract for the Roadway and Parking Lot Improvement Project; Award omaterialsls inspection and laboratory testing contract; Award of contract for engineering services for Phase 2 Roadway (Entrance Roadway) design; Award of a construction contract for the Phase 2 Roadway (Entrance Roadway) design; and Award of materials inspection and laboratory testing contract for the Phase 2 Roadway Project (Entrance Roadway). Exhibit A Page 2 of 2 AMENDMENT NO. 6 CONTRACT SUMMARY Section II. Scope of Services, A. Basic Services, Paragraph c. is revised to read: c. The revised estimate of the required construction budget for the project is $6,055,220. It is mutually agreed that the Engineer will design the project based on the revised scope of the preliminary layout approved by Council, and will make recommendations to the extent feasible to ensure the lowest responsible bid is within the approved opinion of probable construction costs. Section II. Scope of Services is amended by the addition of Additional Services G. 6, 7, 8 and 9 to read as follows: G. Additional Services 6. The Engineer will revise the project layout to comply with FAA security regulations. The revised layout is necessary to ensure all vehicles parked within 300-foot of the terminal building have been properly cleared and searched by security personnel. The Engineer will submit a revision to the preliminary layout approved by Council. The revision will provide for security checkpoints outside the 300-foot exclusion zone for the short-term parking and the rental-car ready/return parking lots. Revisions will also include or provide for canopies, electrical, roadway modifications, and other modifications. The Engineer wilh · revise the construction plans, specifications, and contract documents to confirm to the revised preliminary layout. · revise the phasing plan to confirm to the revised preliminary layout. · submit two (2) copies of the 100% plans and specifications to the City Engineer on or before March 29, 2002, and attend up to three (3) review meetings to ensure conformity with the revised preliminary layout. Section Ill. Fees Authorized is revised to read: IlL FEES AUTHORIZED The City will pay the Engineer an additional not to exceed fee of $146,150 for Amendment 6 services. The revised total not to exceed fee is restated as $700,882.62. The summary of fees is attached. Exhibit B Page 1 of 3 EXHIBIT B SUMMARY OF FEES: Exhibit B Page 2 of 3 ORIGINAL CONTRACT CONTRACT 2 (AMENDMENT 2) TOTAL Task Description LA - Commercial Apron Rehabilitation LB & LC - West GA Apron Repairs & Drainage Improvements LC Taxiways A2 & B3 Improvements CCIA ROADWAY & PARKING LOT IMPROVEMENTS -1999 BASIC SERVICES II.A.1 Preliminary Phase 3,000 19,500 15,000 37,500 II.A1.a Schematic Design Phase 95,000 95,000 II.A.2 Design Phase 13,500 51,500 120,000 185,000 II.A2.a Construction Document Phase 124,000 124,000 II.A3 I Bid Phase 3,500 5,500 5,000 14,000 Basic Service Subtotal 20,000 76,500 359,000 455,500 CONSTRUCTION SERVICES II.B.1 Construction Phase 9,000 23,500 18,000 50,500 11.6.2 Resident Services to be negotiated to be negotiated N.A. 0 11.8.3 Record Drawings 5,000 5,000 Construction Services Subtotal 9,000 23,500 23,000 55,500 POST CONSTRUCTION SERVICES II.0 Post Construction Phase N/A N/A 3,000 3,000 Post Construction Services Subtotal to be negotiated to be negotiated $3,000 $3,000 TOTAL $29,000 $100,000 $385,000 $514,000 AMENDMENT No. 1 II.A4 I Construction Phase N/A ($5,400) N/A ($5,400) Exhibit B Page 2 of 3 EXHIBIT B Exhibit B Page 3 of 3 ORIGINAL CONTRACT CONTRACT 2 (AMENDMENT 2) TOTAL Task Description LA - Commercial Apron Rehabilitation 1.13 & LC - West GA Apron Repairs & Drainage Improvements LC Taxiways A2 & B3 Improvements CCIA ROADWAY & PARKING LOT IMPROVEMENTS - 1999 AMENDMENT No. 3 II.G.1 Investigation of Parking Lot Lighting N/A N/A $6,965.00 $6,965.00 AMENDMENT No. 4 II.G2-4 I Phasing/Wheel Stops/Review N/A N/A $14,990.00 $14,990.00 AMENDMENT No. 5 II.G.S I FAA Security Revisions N/A N/A $24,177.62 $24,177.62 Amendment No. 6 II.G.6 Revisions of Layout, Construction Documents and Phasing Revisions for FAA Security Regulations N/A N/A $146,150.00 $146,150.00 TOTAL $29,000.00 1 $94,600.00 $577,282.62 $700,882.62 Exhibit B Page 3 of 3 File 1071 PROJECT LOCATION 1000 INTERNATIONAL DRNE CORPUS CHRISTI, TEXAS San Patricio County FYI NUECES BAY LOCATION MAP NOT TO SCALE CESAR CHAVEZ BLVD. HWY 44 AGNES RD. CORPUS CHRISTI BAY AIRPORT ENTRANCE PUBLIC PARKING AIRPORT TERMINAL COMMERCIAL APRON TAXIWAYS RUNWAYS SITE PLAN NOT TO SCALE CITY PROJECT No. PN -1071 EXHIBIT "C" LANDSIDE ROADWAY -ENTRANCE ROAD AND CITY COUNCIL EXHIBIT PARRKING LOT IMPROVEMENTS-CCIA DEPARTMENT OF ENGINEERING SERVICES FAA AIP 3-48-0051-28-00 PAGE: 1 of 1 ■■■■�� CITY OF CORPUS CHRIS71, TEXASDATE: 01-23-2002 4 AGENDA MEMORANDUM January 29 2002 SUBJECT: Carolyn Heights Diversion to Greenwood WWTP - 30" line (Project #7196) Acquisition of Parcels 7 & 8a AGENDA ITEM: Resolution authorizing condemnation proceedings by the City to condemn a utility and temporary easement as follows: Utility Easement of 2.847 acres and Temporary Easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony Lands; Utility Easement of .454 acres and Temporary Easement of .674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands, all as shown on the resolution attachment Exhibit A, from the owner CARDCO, INC., to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood WVVTP - 30" line, Project 7196, and for other municipal purposes. ISSUE:. The Carolyn Heights Diversion to Greenwood VVWTP project calls for the acquisition of 16 parcels composed of utility and construction easements. A total length of approximately 18,000 linear feet of easement acquisition is required between Greenwood Drive and Carroll Lane. City staff has negotiated for the acquisition of Parcels 7 and 8a. Negotiations have reached an impasse and authorization for the condemnation of these parcels is requested. RECOMMENDATION: Approval of the resolution as presented. ~'z--,~r{gel R. E~scobar, P. E. Director of Engineering Services Attachments: Exhibit A. Exhibit B. Exhibit C. Exhibit D. Background Information Location Map Information Summary Resolution \\ENGINEERING\DATAI\HOME\EUSEBIOG\GENgAgenda Items\Carolyn Heights Div. Cardo~Agenda Memorandum.doc BACKGROUND INFORMATION SUBJECT: Carolyn Heights Diversion to Greenwood WWTP - 30" line (Project #7196) Acquisition of Parcels 7 & 8a PRIOR COUNCIL ACTION: August 18, 1998 - Motion authorizing the City Manager to execute a contract for engineering services with Goldston Engineering, Inc. for a total fee not to exceed $187,800 for: (a.) Kostoryz Rd. Utilities Adjustment (#7048), (b.) Kostoryz Rd. - SPID to Holly Rd. Drainage Imp. Study (#2038), and (c.) Lift Station Imps. & Carolyn Heights Diversion to Greenwood WWTP (#7109) projects. M98-284. October 17, 2000 - Motion authorizing the City Manager or his designee to execute Amendment No. 1 for Stage 2 services to the engineering contract in the amount of $565,865 with Goldston Engineering, Inc. for the Lift Station Imps. & Carolyn heights Diversion to Greenwood WW'TP project (#7109). M2000-373. October 23, 200_1 - Motion authorizing the acquisition of Parcel 12, out of Lot 5, Section 8, Bohemian Colony Lands, in the amount of $33,475 from the owner Martha G. Spear in connection with the Lift Station Improvements and Carolyn Heights Diversion to Greenwood WWTP - 30" line (#7196). M2001-399. November 20, 200_1 - Motion authorizing the acquisition of Parcel 8b, out of Lot 19, Section 7, Saratoga Place Subdivision, in the amount of $28,000 from the owner Greg Voisin, Trustee in cor, nection with the Lift Station Improvements and Carolyn Heights Diversion to Greenwood WWTP - 30" line (#7196). M2001-432 FUTURE COUNCIL ACTION: Council wile be required to: authorize the award of future construction contracts and amendments; and authorize the approval of any other parcels in the project where acquisition cost exceeds $25,000; and authorize the condemnation of any parcels where negotiations have reached an impasse. OVERVIEW: Background: A number of Stormwater and Wastewater projects were approved by the City Council in the 1997-98 Capital Improvement Program. These projects addressed needed improvements and enhancements to the City's basic infrastructure components. This wastewater project, which is part of the Wastewater facilities Master Plan, will be implemented in two stages. Stage One Exhibit A Page 1 of 2 of this project provides for the elimination of three lift stations (Carolyn Heights, Cresmont and Saratoga Place) and for the construction of gravity lines to the Kostoryz lift station. Stage Two will include the rehabilitation of the lift station at Kostoryz Road, installation of a force main from the lift station towards Ayers Street, and for construction of a gravity line from the Greenwood Wastewater Treatment Plant to Ayers Street along Saratoga Boulevard. Acquisition of 16 parcels, involving utility easements and temporary construction easements, are needed for this project. Approximately 18,000 linear feet of easement is required. This parcel involves approximately 2,775 feet or 15% of the project. Parcel Information: Parcel 7 is a strip of land located north of Saratoga Boulevard, west of and adjacent to the new Crosstown Extension. The parcel is taken out of Lots 3 and 4, Section 7, Bohemian Colony Lands as shown on the attached Council Exhibit "B". This parcel consists of a 65-foot wide by +2,024-foot long utility easement containing approximately 2.847 acres or 124,027 square feet. The parcel is being acquired for the construction and installation of an 8-inch and 30-inch diameter PVC gravity sewer lines necessary for this project. In addition, a temporary construction easement is required. This temporary easement is 50-foot in width by approximately _+1,934 linear feet containing 2.033 acres or 88,575 square feet. Parcel 8a is a strip of land located north of Saratoga Boulevard, east of and adjacent to the new Crosstown Extension. The parcel is also taken out of Lots 3 and 4, Section 7, Bohemian Colony Lands as shown on the attached Council Exhibit "B". This parcel consists of a 30-foot wide by _+686-foot long utility easement containing approximately .454 acres or 19,770 square feet. The parcel is being acquired for the construction and installation of a 12~inch PVC gravity sewer line necessary for this project. In addition, a temporary construction easement is required. This temporary easement is 50~foot in width by approximately _+632 linear feet containing .674 acres or 29,359 square feet. Ne.qotiations: City staff has negotiated with the landowners based on the appraised values of the easements. The appraised values and the landowner's counter offer are listed on the attached "Exhibit C". The landowner's demand is based on amounts received as administrative settlements from the City in 1985 for a Navy Clear Zone and again in 1989 for a drainage ditch project. The City has recently offered an administrative settlement to the landowners for Parcels 7 and 8a totaling $51,400, which is 10% above the appraised value in order to avoid condemnation, however the landowner has rejected it. There is a difference of $52,505 between the landowner's demand and the City's recent administrative settlement amount. Negotiations have reached an impasse and condemnation proceedings are recommended. H:~HOME\EUSEBIOG\GEN~Agenda Items\Carolyn Heights Div. Cardo\Background.doc Exhibit A Page 2 of 2 File : \Mproject\londocqexhibits\exh7196.dwg LOCATION MAP N.T,$. SARATOGA 8LVO. ( STATE HWY. 357 ) 120' R.O.W. Project #7196 - Carolyn Heights Diversion to Greenwood WWTP 2000ss Parcel 7 & 8A Utility Easement City of Corpus Christi, Texas z TEMPORARY EASEMENT 0.674 ACRES UTILITY E~ASEMENT 0.454 ACRES PARCEL 8A VICINITY MAP ~.T.S. City Council Exhibit Department of Engineering Services Date: 01-22-2002 Page: I of 1 EXHIBIT ' B ' INFORMATION SUMMARY CAROLYN HEIGHTS DIVERSION TO GREENWOOD WVVTP - 30" LINE (Project 7196) PARCEL 7 & 8a - Utility & Temporary Construction Easements Owner: Location: Zoning: Size: Platted: Tax Value (NCAD): Appraiser: Appraised Value: Owner's demand: Cardo, Inc. North of Saratoga Boulevard adjacent to the new Crosstown Extension frontage. I-2, Light Industrial District Parcel 7: Parent Tract: Parcel 7 Utility Easement: Parcel 7 Temp. Constr. Easement: Parcel 8a: Parent Tract: Parcel 8a Utility Easement: Parcel 8a Temp. Constr. Easement: 55.7 acres 124,027 s.f. (2.847 ac.) 88,575 s.f. (2.033 ac.) No 3.6 acres 19,770 s.f. (.454 ac.) 29,359 s.f. (.674 ac.) Parcels 7 & 8a - $9,563 per acre. Thomas F. Dorsey, CRE, MAI $15,500/acre (Parcel 7) and $20,200/acre (Parcel 8a)for a total of $46,700 which includes crop damage and replowing. Administrative settlement made of $$51,400, 10% above appraisal. $37,026/acre or $.85 per s.f. (both Parcels) for a total of $103,905 which includes crop damage and replowing. Difference: $ 52,505 H:\HOME\EUSEBIOG\GEN~Agenda Items\Carolyn Heights Div. Cardo\lnformatJon Summary.doc Exhibit C RESOLUTION AUTHORIZING CONDEMNATION PROCEEDINGS BY THE CITY TO CONDEMN A UTILITY AND TEMPORARY EASEMENT AS FOLLOWS: UTILITY EASEMENT OF 2.847 ACRES AND TEMPORARY EASEMENT OF 2.033 ACRES, BEING PARCEL 7 OUT OF LOTS 3 AND 4, SECTION 7, BOHEMIAN COLONY LANDS; UTILITY EASEMENT OF .454 ACRES AND TEMPORARY EASEMENT OF .674 ACRES, BEING PARCEL 8A OUT OF LOTS 3 AND 4, SECTION 7, BOHEMIAN COLONY LANDS, ALL AS SHOWN ON THE ATTACHED EXHIBIT A, FROM THE OWNER CARDCO, INC., TO CONSTRUCT WASTEWATER IMPROVEMENTS IN CONNECTION WITH THE CAROLYN HEIGHTS DIVERSION TO GREENWOOD WWTP - 30" LINE, PROJECT 7196, AND FOR OTHER MUNICIPAL PURPOSES. WHEREAS, it is necessary to acquire the utility easement of 2.847 acres and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4. Section 7, Bohemian Colony Lands; utility easement of .454 acres and temporary easement of 674 acres, being Parcel 8a ou~ of Lots 3 and 4, Section 7, Bohemian Colony [,ands, as deschbed on the attached Exhibit A, on behalf of the City to construct wastewater improvements in cormection with the Carolyn Heights Diversion to Greenwood WWTP - 30" Line, Project 7196, and for other municipal purposes; and WHEREAS, the City has made an offer to purchase the utiliW easement of 2.847 acres, and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony Lands; utility easement of .454 acres and temporm3~ easement of .674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands. for the sum of $51,400 based on the fair market value established by an independent appraiser: and pursuant to law has provided the owner with appraisal reports. WHEREAS, the owner, Cardco, Inc. has been unable to agree with the City on fair market value of the acreage and further negotiations for settlement have become futile; and WHEREAS, condemnation has become necessary in order to acquire the utility easement of 2.847 acres and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony Lands; utility easement of .454 acres and temporary easement of .674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands, as described on the attached Exhibit A, save and except oil and gas rights. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City of Corpus Christi has transmitted appraisal reports and made a bona fide offer to Cardco, Inc., in the amount of $51,400 for the utility easement of 2.847 acres H:\LEG~DIR\JOHN\RESOL UTI\JPB007.RES and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony ][,ands; utility easement of .454 acres and temporary easement of .674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands. as described on the attached Exhibit A; and the Owner and the City of Corpus Christi have negotiated in good faith and cannot agree on the damages, and further settlement negotiations are futile. SECTION 2. That public necessity requires acquisition of the easements as described on the attached Exhibit A. SECTION 3. That the public necessity and convenience require condemnation of the utility easement of 2.847 acres and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony Lands; utility easement of .454 acres and temporary easement of .674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands, as described on the attached Exhibit A, to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood WWTP - 30" line Project and for other municipal purposes. SECTION 4. That the City Attorney is hereby authorized and directed to institute condemnation proceedings against Cardco, Inc., Owner of the acreage, to acquire the utility easement of 2.847 acres and temporary easement of 2.033 acres, being Parcel 7 out of Lots 3 and 4, Section 7, Bohemian Colony Lands; utility easement of .454 acres and temporary easement of.674 acres, being Parcel 8a out of Lots 3 and 4, Section 7, Bohemian Colony Lands, as described on the attached Exhibit A, which acreage is located in the city limits of Corpus Christi, Nueces County, Texas. SECTION 5. That this resolution shall take effect immediately from and after its passage. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretar)' Legal form approved on~l_l BY: ./~n. P. Burke, Jr. (07'" I~qsistant City Attorney Samuel L. Neal, Jr., Mayor 2002: James R. Bray, Jr., City Attorney H:\LEG-DIR\JOHN\RESOLUTI\JPB007. RES CORPUS CHRISTI, TEXAS DAY OF ,2001 The above resolution was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott H:\LEG-DIR\JOHN\RESOLUTI\J PBO07.RES 5 AGENDA MEMORANDUM January 29 2002 SUBJECT: Carolyn Heights Diversion to Greenwood VVVVTP - 30" line (Project #7196) Acquisition of Parcel 1 AGENDA ITEM: Resolution authorizing condemnation proceedings by the City to condemn a Utility and Temporary Easement as follows: Utility Easement of 1.258 acres and Temporary Easement of 1.095 acres, being Parcel 1, out of Lot 8, Section 14, Bohemian Colony Lands, as shown on the resolution attachment EXHIBIT A, from the owner, SOUTH TEXAS RAINBOW LIMITED PARTNERSHIP to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood WW-I'P - 30" line, PROJECT 7196, and for other municipal purposes. ISSUE:. The Carolyn Heights Diversion to Greenwood WW'I-P project calls for the acquisition of 16 parcels composed of utility and construction easements. A total length of approximately 18,000 linear feet of easement acquisition is required between Greenwood Drive and Carroll Lane. City staff has negotiated for the acquisition of Parcel 1. Negotiations have reached an impasse and authorization for the condemnation of these parcels is requested. RECOMMENDATION: Approval of the resolution as presented. ~.~ {7~ Angel R. Escobar, P. E. Director of Engineering Services Attachments: Exhibit A. Exhibit B. Exhibit C. Exhibit D. Background Information Location Map Information Summary Resolution H:\HOME\EUSEBIOG\GEN~Agenda Items\Carolyn Heights Div. So. Tex. Rainbow~Agenda Memorandumdoc BACKGROUNDINFORMATION SUBJECT: Carolyn Heights Diversion to Greenwood VVWTP - 30" line (Project #7196) Acquisition of Pamel 1 PRIOR COUNCIL ACTION: August 18, 1998 - Motion authorizing the City Manager to execute a contract for engineering services with Goldston Engineering, Inc. for a total fee not to exceed $187,800 for: (a.) Kostoryz Rd. Utilities Adjustment (#7048), (b.) Kostoryz Rd. - SPID to Holly Rd. Drainage Imp. Study (#2038), and (c.) Lift Station Imps. & Carolyn Heights Diversion to Greenwood VVVVTP (#7109) projects. M98-284. October 17, 2000 - Motion authorizing the City Manager or his designee to execute Amendment No. 1 for Stage 2 services to the engineering contract in the amount of $565,865 with Goldston Engineering, Inc. for the Lift Station Imps. & Carolyn heights Diversion to Greenwood WVVTP project (#7109). M2000-373. October 23, 2001 - Motion authorizing the acquisition of Pamel 12, out of Lot 5, Section 8, Bohemian Colony Lands, in the amount of $33,475 fro~.~ :?~e owner Martha G. Spear in connection with the Lift Station Improvements and Carolyn Heights Diversion to Greenwood WWTP - 30" line (#7196). M2001-399. November 20, 2001 - Motion authorizing the acquisition or' Pamel 8b, out of Lot 19, Section 7, Saratoga Place Subdivision, in the amount of $28,000 from the owner Greg Voisin, Trustee in connection with the Lift Station Improvements and Carolyn Heights Diversion to Greenwood VVWTP - 30" line (#7196). M2001-432 FUTURE COUNCIL ACTION: Council will be required to: authorize the award of future construction contracts and amendments; and authorize the approval of any other parcels in the project where acquisition cost exceeds $25,000; and authorize the condemnation of any parcels where negotiations have reached an impasse. OVERVIEW: Backqround: A number of Stormwater and Wastewater projects were approved by the City Council in the 1997-98 Capital Improvement Program. These projects addressed needed improvements and enhancements to the City's basic infrastructure components. This wastewater project, which is part of the Exhibit A Page 1 of 2 Wastewater facilities Master Plan, will be implemented in two stages. Stage One of this project provides for the elimination of three lift stations (Carolyn Heights, Cresmont and Saratoga Place) and for the construction of gravity lines to the Kostoryz lift station. Stage Two will include the rehabilitation of the lift station at Kostoryz Road, installation of a force main from the lift station towards Ayers Street, and for construction of a gravity line from the Greenwood Wastewater Treatment Plant to Ayers Street along Saratoga Boulevard. Acquisition of 16 parcels, involving utility easements and temporary construction easements, are needed for this project. Approximately 18,000 linear feet of easement is required. This parcel involves approximately 954 linear feet or 5% of the project. Parcel Information: Pamel 1 is a stdp of land located on the southmost corner of Saratoga Boulevard and Greenwood Drive. The pamel is out of Lots 8, Section 14, Bohemian Colony Lands as shown on the attached Council Exhibit "B". This parcel consists of a 65-foot wide by _+842-foot long utility easement containing approximately 1.258 acres or 54,787 square feet. The parcel is being acquired for the construction and installation of a 30-inch diameter PVC gravity sewer line necessary for this project. In addition, a temporary construction easement is required. This temporary easement is 50-foot in width by approximately +960 linear feet containing 1.095 acres or 47,715 square feet. Neqotiations: City staff has negotiated with the landowners based on the appraised values of the easements. The appraised value and the landowner's demands are listed on the attached "Exhibit C". Negotiations have reached an impasse and condemnation proceedings are recommended. H:\HOME~EUSEBIOG\GEN~AgenOa Items\Carolyn Heights Div. So. Tex. Rainbow\Background.doc Exhibit A Page 2 of 2 SARATOGA BLVD. ~///////////~/////~, ' 65' WIDE UTILITY GREENWOOD WASTEWA TER TREATMENT PLANT EASEMENT ~ O' WIDE TEMPORARY CONSTRUCTZ()N EASEMENT 1SOUTH TEXAS RAINBOW VICINITY IVlAP L TO PARTNERSHIP NOT TO SCALE EXHIBIT "B" Project #7196 - Carolyn Heights Diversion to CITY COUNCIL EXHIBIT Greenwood WWTP 2000ss O~mENr OF ENGINEERING ... Parcel 1 Utihty/TemporaryEasement PAGE: I of 1 CityofCo~us Christi, Ter.~s DATE: 01-23-2002 INFORMATION SUMMARY CAROLYN HEIGHTS DIVERSION TO GREENWOOD WWTP - 30" LINE (Project 7196) PARCEL 1 - Utility & Temporary Construction Easements Owner: Location: Zoning: Size: Platted: Tax Value (NCAD): Appraiser: Appraised Value: Owner's demand: South Texas Rainbow Limited Partnership Southmost corner of Saratoga Boulevard and Greenwood Drive. I-2, Light Industrial District Parent Tract: Parcel 1 Utility Easement: Parcel 1 Temp. Constr. Easement: 11,536 acres 54,787 s.f. (1.258 ac.) 47,715 s.f. (1.095 ac.) No Account No. 0847-0014-0080 11.50 acres assessed at $61,094 or $5,312 per acre Thomas F. Dorsey, CRE, MAI $13,600 per acre for a total offer of $15,200, which includes crop damages and replowing. The landowners submitted a list of twelve (12) demands. The major demands included the reduction of the utility easement to a 5 foot width, unlimited sewer taps, limited to one line only vs. multiple use as a utility easement, driveways every 150 feet, and exclusion of use by City's franchisee's. The landowners would not provide the monetary compensation they require without the City meeting their demands. City staff has determined that a reduced easement width would be prohibitive to this project as well aS detrimental to future utility installations. H:~HOME\EUSEBIOG\GEN~Agenda Items\Carolyn Heights Div. Cardo\lnformation Summary.doc Exhibit C RESOLUTION AUTHORIZING CONDEMNATION PROCEEDINGS BY THE CITY TO CONDEMN A UTILITY AND TEMPORARY EASEMENT AS FOLLOWS: UTILITY EASEMENT OF 1.258 ACRES AND TEMPORARY EASEMENT OF 1.095 ACRES, BEING PARCEL 1, OUT OF LOT 8, SECTION 14, BOHEMIAN COLONY LANDS, AS SHOWN ON THE ATTACHED EXHIBIT A, FROM THE OWNER, SOUTH TEXAS RAINBOW LIMITED PARTNERSHIP TO CONSTRUCT WASTEWATER IMPROVEMENTS IN CONNECTION WITH THE CAROLYN HEIGHTS DIVERSION TO GREENWOOD WXVTP - 30" LINE, PROJECT 7196, AND FOR OTHER MUNICIPAL PURPOSES. WHEREAS, it is necessary to acquire a utility easement of 1.258 acres and temporary easement of 1.095 acres, being Parcel 1, out of Lot 8, Section 14, Bohemian Colony Lands, as described on the attached Exhibit A, on behalf of the City, to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood WWTP - 30" Line, Project 7196, and for other municipal purposes; and WHEREAS, the City has made an offer to pumhase the utility easement of 1.258 acres and temporary easement of 1.095 acres, being Parcel 1, out of Lot 8, Section 14, Bohemian Colony Lands, for the sum of $15,200 based on the fair market value established by an independent appraiser; and pursuant to law have provided the owners with appraisal reports. WHEREAS, the owner, South Texas Rainbow Limited Partnership has been unable to agree with the City on fair market value of the acreage and further negotiations for settlement have become futile; and WHEREAS, condemnation has become necessary in order to acquire the utility easement of 1.258 acres and temporary easement of 1.095 acres, being Parcel 1, out of Lot 8, Section 14, Bohemian Colony Lands, as described on the attached Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City of Corpus Christi has transmitted appraisal reports and made a bona fide offer to South Texas Rainbow Limited Partnership. in the amount of $15,200 for the utility easement of 1.258 acres and temporary easement of 1.095 acres, being Parcel 1, out of Lot 8, Section 14, Bohemian Colony Lands, as described on the attached Exhibit A; and the Owner and the City of Corpus Christi have negotiated in good faith and cannot agree on the damages, and further settlement negotiations are futile. SECTION 2. That public necessity requires acquisition of the easements as described on H:\LEG-DIR\.IOHN\RESOL UTI\J PB008. RES the attached Exhibit A. SECTION 3. That the public necessity and convenience require condemnation of the utility easement of 1.258 acres and temporary easement of 1.095 acres, being Parcel I, out of Lot 8. Section 14. Bohemian Colony Lands. as described on the attached Exhibit A. to construct wastewater improvements in connection with the Carolyn Heights Diversion to Greenwood WWTP - 30" Line Project and for other municipal purposes. SECTION 4. That the City Attorney is hereby authorized and directed to institute condemnation proceedings against South Texas Rainbow Limited Partnership, Owner of the acreage, to acquire the utility easement of 1.258 acres and temporary easement of 1.095 acres, being Pamel 1, out of Lot 8, Section 14, Bohemian Colony Lands, as described on the attached Exhibit A, which acreage is located in the city limits of C~rpus Christi, Nueces Count, Texas. SECTION 5. That this resolution shall take effect immediately from and after its passage. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor Legal form approved on ~.~, 2002; James R. Bray, Jr., City Attorney (~. b~ ~rkeTJr. ~ ~ssistant City Attorney H:\LEG-DIR\JOHN\RESOLUTI\JPB008.RES 6 CITY COUNCIL AGENDA MEMORANDUM DATE: January 17, 2002 AGENDA ITEM: Ordinance abandoning and vacating 3,000-square feet, of a 10-foot wide, utility easement out of Lot 4A, Block 502, Padre Island - Corpus Christi Mariner's Cay Subdivision; requiring the owner, Mr. B. Wiley Mayden, (Owner), to comply with the specified conditions and replat the property within 180 days at owner's expense; and declaring an emergency. ISSUE: On behalf of Mr. Wiley Mayden, Voss and Voss Engineering is requesting the abandonment and vacation of an easement to accommodate future development of a multi- townhouse site that will be constructed over the utility easement. REQUIRED COUNCIL ACTION: City Charter requires Council approval to abandon and vacate any portion of an easement. IMPLEMENTATION SCHEDULE: Owner must replat the property within 180 days at their expense. RECOMMENDATION: Staff recommends approval of the ordinance as presented on an emergency basis. 'Ar~eyR. Escobar, P.E. Director of Engineering Services Attachments: Exhibit A - Background Information Exhibit B - Ordinance Exhibit C - Site Location Map AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION PURPOSE OFCLOSUREAND BACKGROUND: Mr. B. Wiley Mayden is requesting the abandonment and vacation of a 3,000-square foot, 10-foot wide utility easement out of Lot 4A, Block 502, Padre Island - Corpus Christi Mariner's Cay. Mr. Mayden owns Lot 4A, Block 502, Padre Island - Corpus Christi Mariner's Cay which embraces the portion of utility easement proposed for abandonment and vacation. The easement to be abandoned and vacated is located in Zone B-2A within the city limits of Corpus Christi. Mr. Mayden must close the utility easement to accommodate futura development of a multi-townhouse site that will be constructed over the utility easement. Mr. Mayden is proposing to dedicate a 15-foot by 150-foot utility easement, a 10-foot by 45~foot utility easement, and a 5-foot by 427-foot utility easement for a total of 4,835-square feet within Lot 3, Block 504, Padre Island-Corpus Christi Mariner's Cay. The dedication is to help offset the fair market value being assessed to the 3,000-square foot utility easement being abandoned and vacated. All public and franchised utilities were contacted. There were rio objections regarding the proposed easement abandonment. There are no existing utilities within the easement being closed. Staff recommends that payment of the fair market value be waived because Owner will be dedicating utility easements of greater value to off-set the proposed abandonment. The owner has been advised of and concurs with the conditions of the easement abandonment. EXHIBIT A PADRE ISLES VICINITY MAP (NTS) $ 88° 42' 33' E LOT 4A LOT 4A BLOCK 502 PADRE ISLAND - CORPUS CHRISTI MARINER'S CAY V. 61. P. 128 M.R.N.C.T.) LOT 2 N 88°42' 33" W 43700' LOT 3 THE PROPERTY LIES WITHIN ZONEA-13(9') ACCORDING TO FIRM 1992. WHICH IS NOT WITHIN THE 100 YEAR FLOOD PLANE SITE MAP (EASEMENT CLOSURE) LOT 4A BLOCK 502 MARINER'S CAY CITY OF CORPUS CHRISTI, TEXAS EXHIBIT C ~ DEPARTMENT OF ENGINEERING SERVICES DATE: 11119/01 ~.. ~ IT AN ORDINANCE ABANDONING AND VACATING 3,000 SQUARE FEET OF A TEN (10) FOOT WIDE UTILITY EASEMENT OUT OF LOT 4A, BLOCK 502, PADRE ISLAND- CORPUS CHRISTI MARINER'S CAY SUBDIVISION; REQUIRING THE OWNER, MR. B. WILEY MAYDEN, TO COMPLY WITH THE SPECIFIED CONDITIONS AND REPLAT THE PROPERTY WITHIN 180 DAYS AT OWNER'S EXPENSE; AND DECLARING AN EMERGENCY. WHEREAS, there is a 3,000 square foot portion of a 10 foot wide utility easement out of Lot 4A, Block 502, Padre Island- Corpus Christi Mariner's Cay Subdivision, as recorded in Volume 61, Page 128, Map Records Nueces County, Texas, that the owner, Mr. B. Wiley Mayden, (Owner), wishes to have abandoned and vacated; and WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to abandon and vacate said portion of the utility easement for all purposes, subject to the provisions below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the 3,000 square foot portion of a 10 foot wide utility easement out of Lot 4A, Block 502, Padre Island- Corpus Christi Mariner's Cay Subdivision, as recorded in Volume 61, Page 128, Map Records Nueces County, Texas is abandoned and vacated for public use as a utility easement, subject to Owner's compliance with the following specified conditions as part of the abandonment and vacation: That the City waive payment of fair market value by Owner for the vacating and abandonment of this 10 foot utility easement because the Owner will be dedicating utility easements of equal or greater value to off-set the proposed vacation and abandonment of the easement. The Owner must replat the portions of Padre Island- Corpus Christi Mariner's Cay being abandoned and vacated within 180 days at Owner's expense; provided however, the City Engineer may extend the time limit for an additional 180 days if extenuating circumstances outside the Owner's control necessitate an extension. SECTION 2. That upon written request of the Mayor or five council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the 29th day of January, 2002. L:\LEG-DIR\JOSEPH\WORD\ORD-PI-MarCay.doc ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Samuel L. Neal, Jr. Mayor Legal form approved James R. Bray, Jr. City Attorney ,2002 BY:Joseph H& 0 Assistant City Attorney L:\LEG-DIR\JOSEPH\WORD\ORD-P[-MarCay.doc 7 CITY COUNCIL AGENDA MEMORANDUM Date: January 22, 2002 AGENDA ITEM: A. Motion authorizing the City Manager or his designee to execute all documents necessary to accept and implement a grant from the Texas Department of Health for laboratory services for the analysis of bay water samples collected by the Texas Department of Health personnel for $22,500, B. Ordinance appropriating $22,500, in the Federal/State Grant Fund No. 1050 for the FY 2002 grant from the Texas Department of Health for laboratory services; and declaring an emergency. BACKGROUND: In March of 2001 the Texas Department of Health (TDH) approached the Corpus Christi - Nueces County Public Health Department (PHD) about testing the sea water from Galveston to Brownsville for seafood safety. The private company originally contracted by the State lost their certification. In August 2001 the FDA provisionally accredited the PH D laboratory to perform examination of sea water for the shellfish industry to protect the public from disease related to the consumption of shellfish. The TDH has forwarded the contract for $22,500 for execution. ISSUE: Accepting the grant and appropriating the funds is required. REQUIRED COUNCIL ACTION: Acceptance of the FY2002 Texas Department of Health grant and appropriating $22,500 for laboratory services for the analysis of bay water samples collected by the Texas Department of health personnel. FUTURE COUNCIL ACTION: None RECOMMENDATION: Authorizing the City Manager or his designee to accept and appropriate $22,500 for laboratory services for the analysis of bay water samples collected by the Texas Department of Ilealth personnel. Nina M. Sisley, M.D., M.P.H. Director of Public Health ORDINANCE APPROPRIATING A $22,500 GRANT FROM THE TEXAS DEPARTMENT OF HEALTH IN THE NO. 1050 FEDERAL/STATE GRANT FUND FOR I.\I~;OI~.VFORYSERVICES;ANDDE(I..\RIN( \X EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a $22,500 grant from the Texas Department of Health is appropriated in the No. 1050 Federal/State Grant Fund for laboratory services. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter role that requires consideration of and voting upon ordinances at two regular meetings so that this ordiilaIlCC is passed and takes ct'feet upon first reading :is ~tn emergency' measure this the __ day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary APPROVED ~-1~-~-,'-~, ~ '~-, 2002 James R. Bray, J~. 0 City. Attorney By: ~,.c -,~ /-~4,,.-~'~' Lisa Aguilar c.) Assistant City Attorney Samuel L. Neal, Jr., Mayor 8 AGENDA MEMORANDUM SUBJECT: Public Health Services DATE: January 18, 2002 AGENDA ITEM: Ao Motion authorizing the City Manager or his designee to execute Attachment No. 02 to Contract No. 7460005741-2003 with the Texas Department of Health in the amount of $87,979.00 for tuberculosis prevention and control and expanded outreach services. An ordinance appropriating a grant from the Texas Department of Health in the amount of $87,979.00 for tuberculosis prevention and control and expanded outreach services; adding $87,979.00 to the No. 1050 federal/state grant fund - Health Department. ISSUE: Tuberculosis prevention and control and outreach services are among a variety of services offered by the Health Department. Funding is provided by the Texas Department of Health (TDH). This contract attachment will assist in tuberculsosis prevention and surveillance of high-risk individuals. In addition, treatment and preventative therapy for known cases and contacts will be provided. The attachment consists of $87,979.00 in financial assistance covering personnel, fringe benefits, travel, and client transport costs. This attachment to the contract is a continuation of funding for services previously established. REQUIRED COUNCIL ACTION: Approval of the contract attachment, appropriation of funds. RECOMMENDATION: Staff recommends that the contract attachment be approved, funding appropriated to assure continuation of tuberculosis prevention and control and outreach services. Nina M. Sisley, M.D., IV[PM. Director of Public Health ORDINANCE APPROPRIATING A $87,979 GRANT FROM THE TEXAS DEPARTMENT OF HEALTH IN THE NO. 1050 FEDERAL/STATE GRANT FUND FOR TI!BERCIrEOSIS PREVENTION AND CONTROl, \ND EXPANDEI) OUIRIGXCilSI.;IO/ICE~;ANDDECLARIN(; ,\NI~51ER(/ENC¥. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a $87,979 grant from the Texas Department of Health is appropriated in the No. 1050 Federal/State Grant Fund for tuberculosis prevention and control and expanded outreach services. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the eI55cient and effective administrz~.ticm (>f Git,..' affairs and (25 >uspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the __ day of ,2002. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa. City Secretary Samuel L. Neal, Jr., Mayor APPROVED James Ii.. Bra3. Jr. City Attorney By: ~.,x.o~ Lisa Aguilar 0 Assistant City Attorney · 2002 CITY COUNCIL AGENDA MEMORANDUM Date: January_ l 1~ 2002 AGENDAITEM: 1 Resolution authorizing the submission of a grant application in the amount of $77,27I to the State of Texas, Office of the Governor, Criminal Justice Division for fifth year funding of the Gang Analysis Unit of the Police Department and to execute all related documents. 2. Resolution authorizing the submission ora grant application in the amount of $58,760 to the State of Texas, Office of the Governor, Criminal Justice Division for third year timding for the Computer Forensics Specialist grant. 3. Resolution setting a priority number of one for the Gang Analysis Unit and priority two for the Computer Forensics Specialist. ISSUE: City Council must approve submission of grant applications for both grants. The local Coastal Bend Council of Governments requires all jurisdictions to assign a priority number to each project ifthey submit multiple grant applications. Since the Gang Analysis Unit is a fifth year project, it receives a higher priority number than the third project. FUNDING: 1. The State will provide $18,313 and the City will contribute $58,958. The State provides 25% of salaries and benefits for two civilian employees, a Gang Analyst and a Data Entry Clerk III. The City funds provide for the remaining 75% and operational costs such as office supplies. The grant is on a five-year funding schedule with this year being the final year. 2, The State will provide $39,873 and the City will contribute $13,291for the salary and fringe benefits for one civilian Computer Forensics Specialist. The Police Operating Budget will provide $1,596 for supplies and the Law Enforcement Trust Fund $4,000 for necessary training and computer equipment~ The third year funding level is 75%/25%, Year 4 = 50/50 and Year 5 = 25/75. Required Council Action: Approval to submit grant applications and assign the priority numbers. Implementation Schedule: The grant applications must be submitted to COG by 2/14/02 and the grant year will begin 9/01/02. Funds will be appropriated at the time of grant award. Recommendation: Staff recommends passing the resolution approving submission of the grant applications to the Office of the Governor, Criminal Justice Division. Chief of Police JSPATDOCS\GRANTS\GAUFORENSICSAPPO203.DOC ADDITIONAL BACKGROUND INFORMATION Agenda Item 1: The Corpus Christi Police Department is requesting fifth year funding for continuation of the Gang Analysis Unit. The unit will continue the Police Department's operational plan to address the youth street gang problem through proactive measures. The personnel will be responsible for maintaining the relational gang database on-line by entering and updating the records of known and suspected gang members. They will also review, prepare, and tbrward daily reports of JET officers to the appropriate authorities; compile statistical data, and support criminal and civil litigation concerning gang activities. This is the fifth and final year of the grant. Agenda Item 2: The Corpus Christi Police Department is requesting third year funding for the Computer Forensics Specialist grant. The goal of the grant is to enhance the capabilities of the CCPD in the areas of prevention, investigation, and prosecution of computer-facilitated crime, especially in cases involving computer based sexual exploitation of children. The primary purpose of the computer forensics specialist is to extract evidence pertaining to computer crimes. Additionally, this individual will provide technical support and training to investigators and field officers on computer crime indicators, initial search and seizure requirements and procedures, and will provide expert testimony on computer crimes. The Computer Forensics Specialist. being an expert in computers, the Internet. and various types of cyber crime, can also be called upon to give presentations on cyber crime prevention to various organizations (i.e. public and private schools, Parent Teacher Associations (PTA), the Rotary Club, Boy and Girl Scouts of America, and area law enforcement seminars). The Department will also design and implement prevention strategies for children and their families on the safe use of the Internet and other forms of online communication. J:XPATDOCS\GRANTSXGAUFORENS ICSAPP0203.DOC RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT A GRANT APPLICATION IN THE AMOUNT OF $77,271 TO THE STATE OF TEXAS, OFFICE OF THE GOVERNOR, CRIMINAL JUSTICE DIVISION, FOR FIFTH YEAR FUNDING OF THE GANG ANALYSIS UNIT OF THE POLICE DEPARTMENT NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager, or his designee, is authorized to submit a grant application in the amount of $77,271 to the State of Texas, Office of the Governor, Criminal Justice Division, for fifth year funding of the Gang Analysis Unit of the Police Department. SECTION 2. The City of Corpus Christi will provide matching grant funds of $58,958. SECTION 3. In the event of the loss or misuse of these Criminal Justice Division funds, the City of Corpus Christi assures that the funds will be returned to the Criminal Justice Division in flail. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor Legal form approved ~/_n~(~ ~ ~ t ,2002: James R. Bray, Jr., City Attornev By: Lisa Aguilar ~:~v'~E~ Assistant City Attorney H:\LEG-DIR\LISA\RES\RES,076 RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT A GRANT APPLICATION IN THE AMOUNT OF $58,760 TO THE STATE OF TEXAS, OFFICE OF THE GOVERNOR, CRIMINAL JUSTICE DIVISION, FOR THIRD YEAR FUNDING FOR THE COMPUTER FORENSICS SPECIALIST NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager, or his designee, is authorized to submit a grant application in the amount of $58,760 to the State of Texas, Office of the Governor, Criminal Justice Division, for second year funding of the Computer Forensics Specialist of the Police Department. SECTION 2. The City of Corpus Christi will provide matching grant funds of $13,291. SECTION 3. In the event of the loss or misuse of these Criminal Justice Division funds, the City of Corpus Christi assures that the funds will be returned to the Criminal Justice Division in full. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor Legal form approved ¢xf~*-~x,~. ~21 , 2002; James R. Bray, Jr., City. Attorney By: Lisa AguilarL) Assistant City Attorney H:\L£G-DIR/LISA\RES\RE$,0?7 RESOLUTION SETTING A PRIORITY NUMBER OF ONE FOR THE GANG ANALYSIS UNIT AND PRIORITY NUMBER OF TWO FOR THE COMPUTER FORENSICS SPECIALIST FOR THE GRANT APPLICATIONS SUBMITTED TO THE STATE OF TEXAS NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City of Corpus Christi hereby authorizes the setting of a priority number of one for the Gang Analysis Unit and priority number of two for the Computer Forensics Specialist for the grant applications submitted by the City of Corpus Christi Police Department to the State of Texas. Office of the Governor, Criminal Justice Division. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Samuel L. Neal, Jr., Mayor Legal form approved ~/~,~z~ o3 3 , 2002; James R. Bray, Jr., City Attorney By: Lisa Aguilar Assistant City Attorney HALEG-DIR\LISA,RES\RES.078 CITY COUNCIL AGENDA MEMORANDUM City Council Meeting January 29, 2002 AGENDA ITEM: Ordinance authorizing the City Manager, or his designee, to execute a five-year lease with Marbella Grill, Inc., D.B.A. Christian's House, for the use of City Property, to with:Merriman-Bobys House in Heritage Park, to operate as a food service operation. ISSUE: Christian Chavanne of Christian's House has operated his food establishment under a one-year lease agreement in the Merriman-Bobys. He has expressed expressed an interest in a five-year contract for the use of the Merriman-Bobys House. REQUIRED COUNCIL ACTION: A five-year contract requires Council approval. RECOMMENDATION: Staff recommends approval of a five-year contract with Christian's House. ADDITIONAL SUPPORT MATERIAL Background Information Ordinance/Resolution X X Marco A. Cisneros, Director Park & Recreation Department h:\pr-dirL~harcd~adel[eLmatthcws~gnditms~alliancc.ag¢ Background Information The City has leased houses in Heritage Park since the first three homes were moved on site in the 1970's. The City constructed Heritage Park around those homes and has since added several more structures to complete the historical home project. The City owns all nine of the homes located in Heritage Park. Seven of the nine homes, all but the Galvan and Sidbury, are leased from the City. The homes in Heritage Park were moved to the site and renovated over a period of several years. The Merriman-Bobys house has had several tenants over the years. Originally the Corpus Christi Arts Council operated it. Since the original tenant, several short-term leases have been used to maintain a food service operation in Heritage Park. In June of 2000, a legal notice was printed in the Caller-Times, press releases were sent to radio and TV stations, and Request for Proposals were mailed to organizations who had indicated interest in the house. The criteria used to evaluate the proposals were 1. visitor attraction; 2) benefits to the park; 3) public access; 4) ability to meet the terms of the lease; 5) amount bid for monthly payment; 6) ability to pay. In response to the RFP Christian's House was selected and issued a one-year lease. Christian's House has been a positive enhancement to Heritage Park and has made the lease payments on time. The Lease calls for payments of $300 per month to the City. The term on the lease is for five (5) years. The tenant pays for electricity and telephone. AN ORDINANCE AUTHORIZING THE CiTY MANAGER, OR HIS DESIGNEE, TO EXECUTE A FIVE-YEAR LEASE WITH MARBELLA GRILL, INC., D.B.A. CHRISTIAN'S HOUSE, FOR THE USE OF CITY PROPERTY, TO WIT: MERRIMAN-BOBYS HOUSE IN HERITAGE PARK, TO OPERATE AS A FOOD SERVICE OPERA- TION; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager, or his designee, is authorized to execute a five-year lease with Marbella Grill, Inc., doing business as Christian's House. for the use of City property, to wit: Merriman-Bobys House in Heritage Park, to operate as a food service operation. A copy of the lease, including exhibits that are attached to and incorporated into the lease, is on file with the City Secretary. SECTION 2. If, for any reason, any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of the City Council that every section, paragraph, subdivision, phrase, word and provision hereof shall be given full force and effect for its purpose. SECTION 3. Publication will be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of ,2001, by the following vote: Samuel L. Neal, Jr. Henry Garrett Brent Chesney Javier D. Colmenero Bill Kelly Rex A, Kinnison John Longoria Jesse Noyola Mark Scoff That the foregoing ordinance was read for the second time and passed finally on this the day of ,2002. -;7 the lc[lowing vote: Samuel L Neal, Jr. Henry Garrett Brent Chesney Javier D. Colmenero Rex A. Kinnison John Longoria Jesse Noyola Mark Scott Bill Kelly PASSED AND APPROVED on this the day of ,2002. ATTEST: By: CITY OF CORPUS CHRISTI By: Armando Chapa, City Secretary APPROVED AS TO LEGAL FORM this //~L~ dayof JAMES R. BRAY, JR., CITY ATTO~ Elizabeth~. Hundley, Assista~t City Attorneu Samuel L. Neal, Jr., Mayor ,2001. ,,[ ¢ ,~- ORDINANCE STATUS Ordinance Amending Section 53-99, Operation of Trucks, Trailers and Other Heavy Vehicles Restricted on Certain Streets, of the Code of Ordinances, City of Corpus Christi, to allow automated Solid Waste vehicles to travel against traffic on one-way streets to collect from City- provided garbage carts; providing for penalties. January 22, 2002 Passed: 8-0 ( 1 absent) January 29, 2002 CITY COUNCIL AGENDA MEMORANDUM DATE: January 14, 2002 AGENDA ITEM: Ordinance amending the Section 53-99, Operation of trucks, trailers and other heavy vehicles restricted on certain streets, of the Code of Ordinances, City of Corpus Christi, to allow automated Solid Waste Vehicles to travel against traffic on one way streets to collect from city provided garbage carts; providing for penalties; providing for severance; and providing for publication. ISSUE: Traffic safety issues regarding the collection of city provided garbage containers set out on streets with one-way traffic. BACKGROUND: On November 1, 2001, the City Solid Waste Services Department began an automated collection program for over 1/3 of our customers. The program uses city provided automated collection carts and new collection trucks that operate with a mechanical side arm to pick up the automated collection carts. Some of these customers are located on one-way streets throughout the city limits. The vehicles used to collect the new automated carts can only pick up carts on one side of the truck. This means that the truck must go down one side of the street then turn around and go down the other side. With the customers located on one-way streets, that means that the truck would have to drive against the traffic. There is no other option for the collection of these carts that would not involve putting city employees in harms way. RECOMMENDATION: Staff recommends the approval of ordinance and amendment. Director, Solid Waste Services H/Iodlie/coun dlmemos/onewaytraficord.doc AN ORDINANCE AMENDING THE SECTION 53-99, OPERATION OF TRUCKS, TRAILERS AND OTHER HEAVY VEHICLES RESTRICTED ON CERTAIN STREETS, OF THE CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, TO ALLOW AUTOMATED SOLID WASTE VEHICLES TO TRAVEL AGAINST TRAFFIC ON ONE WAY STREETS TO COLLECT FROM CITY PROVIDED GARBAGE CARTS; PROVIDING FOR PENALTIES; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION '1. Section 53-99 of the Code of Ordinances is amended by adding a new subsection (g) to read as follows: Sec. 53-99. Operation of trucks, trailers and other heavy vehicles restricted on certain streets. (g) It shall be a defense to a charge under Section 53-250 that the person so charged show by competent evidence that the operation of an automated garbage truck operated by the City's Department of Solid Waste Services was traveling against the flow of traffic on a one-way street in order to service a City provided garbage cart. (1) This subsection does not apply to the following streets: a. Any streets designated as one-way during school days. b. Any state highway. (2) When traveling against the flow of traffic, the automated garbage truck must flash warning lights clearly visible to the operators of approaching vehicles and drive as close to the curb where carts are being serviced as possible. (3) An automated garbage truck traveling against the flow of traffic shall yield to all approaching vehicles. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word, or prevision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance be given full force and effect for its purpose. R13372A2.doc 2 SECTION 3. A violation of this ordinance or requirements implemented hereunder shall constitute an offense, punishable as provided in Section 21-3 of the City Code of Ordinances. SECTION 4. 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. RI3372A2.DOC 12 AGENDA MEMORANDUM DATE: January 29, 2002 SUBJECT: Presentation - Broadway Wastewater Treatment Plant Diversion Status BACKGROUND Engineering Services will make a presentation on the status of the Broadway Wastewater Treatment Plant Diversion project including progress completed, work pending, projected cost estimate and recommended option. FUTURE COUNCIL ACTION: Council will be requested to authorize the necessary engineering and construction contracts to implement the necessary improvements. Foster Crowell, Wastewater Superintendent A~I R. Escobar, P.E., ' Director of Engineering Services Additional Support Material: Attachment (1) Presentation 2 Presentation Overview • Brief History • 1997 Implementation Plan • Council Directive - May 15, 2001 • Council Directive - September 11, 2001 • Review of Options • Option #1 - Diversion to Greenwood • Option #3 - Construct New Plant in Industrial Area • Option #4 - Construct New Plant at Existing Site • Cost Comparisons • Staff Recommendation 1997 Oso Greenwood Implementation Plan Approved by Council March 18, 1997 • Cost Benefit Analysis Performed • Realized cost savings: • Implementation cost: $ 900,000/yr $ 2294009000 3 M Council Directive - May 15, 2001 • Evaluate Four Options: 1. Diversion to Greenwood 2. Diversion to Allison 3. Construct New Plant Industrial Area 4. Construct New Plant at Broadway k Council Directive = September 11, 2001 Further Evaluate Three Viable Options: 1. Diversion to Greenwood 3. Construct New Plant Industrial Area 4. Construct New Plant at Broadway Option #1: Diversion to Greenwood BENEFITS ✓ Consolidation of the Plants ✓ One less Discharge Permit ✓ Less Operational / Maintenance Staff ✓ Potential Effluent Re -use CONSTRAINTS X Stringent Permit Discharge XAdditional Pumping Cost for Lift Stations and Pipeline XAdditional Land Cost for intermediate lift station and force main easements no Option #3m. New Plant Ind. Area BENEFITS ✓ Less Odor Control ✓ Ease of Construction ✓ No Change in Permit Requirements ✓ Potential Effluent Re -use ✓ Asset Value Existing Site CONSTRAINTS X Limited Space X Site Preparation XNew Force Main XProperty Acquisition �yJ q9F 1p8 q C�, ,yC�P�� O SS LEGEND: .. ❑ PROPOSED 0 Pte. �pP #3 - Citgo Site Conditions Option #4: Broadway Site Conditions BENEFITS ✓ No Property Acquisition ✓ No Permit Change ✓ Ease of Implementation CONSTRAINTS X Conflicts with Area Development Plan XOdor Control required XMust maintain Operations during Construction X Aesthetics X Construction space limited I 10 LEGEND uPIIOIIOSFD . " M FE RPIUVEC qpbl9 I ♦�r :q I � Y.FST BFOA"AY y `e #4 - Broadway Site Conditions Cost Comparison of Three Options 11 Diversion to Greenwood Plant New Plant in Industrial Area New Plant at Broadway Site Lift station at Broadway Plant $ 2,673,000 $ 21803,000 $ 2,738,000 Intermediate Lift Station & Force Main 10,264,000 580,000 210,000 Site work- Broadway 600,000 600,000 250,000 Construction of 8.0 MGD Activated Sludge Plant 299920,000 27,360,000 28,640,000 New gravity line along Salt Flats - 965,000 965,000 Contingencies 81541,000 6,5819000 6,561,000 Administration / Legal / Engineering / Inspection 61150,000 41738,000 49724,000 Asset Value for Broadway Site (750,000) (750,000) - Port Authority- Property & Mitigation of Wetlands _ (80,000) - New Site Preparation and Development _ 19425,000 - TOTAL $ 579398,000 $ 449222,000 $ 449088,000 12 Cost Comparison w/ 20 -year O&M Life Cycle New Plant at Broadway Site (Option #4) Diversion to Greenwood (Option #1) New Plant in Industrial Area (Option #3) Project Implementation Cost $ 57,398,000 $ 44,222,000 $ 449088,000 20 yr. Life Cycle Analysis O & M (Present Value) $ 14,876,000 $ 13,431,000 $ 16,4719000 Total Cost $ 72,274,000 $ 57,6539000 $ 60,559,000 13 STAFF RECOMMENDATION • Proceed with Option #3 New WWTP in the Industrial Area • Amend A/E Contract with Govind Engineering for Council award • Begin assembling team to help with negotiations between City, Citgo & Port of Corpus Christi • Address issues specific to land purchase 14 Issues To Be Resolved - CITGO Site • Removal of Existing Storage Tanks • Replacement of Storage Tanks • Wetlands Mitigation • Environmental Closure • Participation with Port Authority • Property Acquisition Schedule 13 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: CITY STAFF PRESENTER(S): Name 1. W. Thomas Utter DATE: January 24, 2002 Designation of Corpus Christi as a Renewal Community Title Assistant City Manager Dept/Div Intergovernmental Relations ISSUE: The Department of Housing and Urban Development has announced that Corpus Christi has been selected as a Renewal Community. This designation means that the City will be eligible to share in an estimated $17 billion in tax incentives to stimulate job growth, promote economic development and create affordable housing. REQUIRED COUNCIL ACTION: The Council is required to submit a resolution of endorsement to the Department of Housing and Urban Development. Attachments Assistant City Manager NEWS Department of Housing and Urban Development - Mel Martinez, Secretary Office of Public Affairs, Washington, DC 20410 HUD No. 02-013CC Scott Hudman (817) 978-5965 http://www.hud.gov/news/index.c fm BUSH ADMINISTRATION ANNOUNCES RENEWAL COMMUNITY INITIATIVE; HUD ANNOUNCES CORPUS CHRISTI SELECTED AS RENEWAL COMMUNITY - ELIGIBLE FOR $17 BILLION IN TAX INCENTIVES FOR RELEASE Wednesday January 23, 2002 CORPUS CHRISTI - The Department of Housing and Urban Development today announced the City of Corpus Christi will be designated a "Renewal Community," eligible to share in an estimated $17 billion in tax incentives to stimulate job growth, promote economic development and create affordable housing. The 2000 Community Renewal Tax Relief Act established the Renewal Cornrnunity Initiative that will encourage public-private collaboration to generate economic development in 40 distressed communities around the country. As a result of this Renewal Community designation, Corpus Christi will receive regulatory relief and tax breaks to help local businesses provide more jobs and promote community revitalization. "These tax incentives will help businesses grow in some of our country's most challenging communities," said A. Cynthia Leon, Regional Director for HUD. "By creating the incentives that will promote job growth and economic development, we are joining with the private sector to restore economic vitality and restore whole communities in the process." "The City of Corpus Christi has worked hard for this designation and we couldn't be more pleased," said Mayor Loyd Neal. "These tax cuts bring businesses, jobs, and growth through the rest of the decade. So this is great news for now and for our future" Renewal Communities will use the power of public and private partnerships to build a framework of economic revitalization in areas that experience high unemployment and shortages of affordable housing. An estimated $6 billion in tax incentives are exclusively available for Renewal Communities across the country. As distressed areas, Renewal Communities will also be eligible to share in an additional $11 billion in Low-Income Housing and New Market Tax Credits. These new RCs can take advantage of wage credits, tax deductions, capital gains exclusions and bond financing to stimulate economic development and job growth. Each incentive is tailored to meet the particular needs of a business and offers a significant inducement for companies to locate and hire additional workers. -more- HUD No. 02-013CC Page 2 Nearly 60 percent of the residents in the City of Corpus Christi's Renewal Community live in poverty and can not afford even basic necessities for their families. By cutting taxes, improving local services, and reducing crime, Corpus Christi hopes to attract businesses in the area that will make up its Rcnewal Community. The new jobs created will help ease the 19 percent unemployment rate found within Renewal Community area. TAX CREDITS · Wage credits are especially attractive to businesses looking to grow. These businesses are able to hire and retain RC residents and apply the credits against their federal tax liability. Businesses operating in the new Renewal Community will enjoy up to a $1,500 credit for every newly hired or existing employee who lives and works in the RC. * Work Opportunity Credits provide businesses in Renewal Communities with up to $2,400 against their Federal tax liability for each employee hired from groups with traditionally high unemployment rates or other special employment needs, including youth who live in the RC. Welfareto WorkCreditsofferbusinessesacreditofupto$3,5OO(inthefirstyearof employment) and $5,000 (in the second year) for each newly hired long-term welfare recipient. TAX DEDUCTIONS · Commercial Revitalization Deductions permit a State with one or more RCs to deduct $12 million per RC per year, up to $10 million per project for commercial or industrial buildings developed in the RCs. A business can deduct up to $5 million in the year the building is placed in service or deduct the full amount of eligible expenditures pro rata over 10 years. · Section 179 Deductions under the tax code allow a qualified Renewal Community business to expense up to $35,000 of additional qualified property such as equipment and machinery acquired each year during the period of the RC designation, 2002 through 2009. · Environmental Cleanup Cost Deductions alloxv businesses to deduct qualified cleanup costs in Brownfields. CAPITAL GAINS EXCLUSIONS Zero Percent Capital Gains Rate applies to an interest in, or property of, certain businesses operating in a Renewal Community, if the asset is acquired during the period of the RC designation and held for at least 5 years. BOND FINANCING Qualified Zone Academy Bonds allow state and local governments to match no-interest loans with private funding sources to finance public school renovations and programs. In addition to the incentives described above, HUD will provide technical assistance to these communities to help make businesses fully aware of the many opportunities available to them. To make certain the Renewal Communities are successful in the initial stages of their designations, HUD will host an Implementation Conference in the spring of 2002 where the newly designated RCs will meet to hear from experts in the fields of business, taxes and economic development. -more- HUD No. 02-013CC Page 3 OTHER INCENTIVES Like all distressed communities, Renewal Communities will also be able to take advantage of the New Markets Tax Credits that provide investors with a credit against their federal taxes of 5 to 6 percent of the amount invested in a distressed area. Also available to Renewal Communities is the Low-Income Housing Tax Credit providing credit against Federal taxes for owners of newly constructed or renovated rental housing. The 2000 Community Renewal Tax Relief Act authorized HUD to designate 40 Renewal Communities and seven new urban Empowerment Zones. HUD received more than 100 Renewal Community applications from communities around the count'ry. Urban RC applicants were ranked according to their 1990 Census rates of poverty, unemployment and low-income households. Rural RC applicants were exempt from the household income factor. Bonus points were given for having low crime and having been identified by GAO as an extremely distressed area. In other words, the most economically distressed communities were awarded designation. Existing EZ/ECs also received a preference in rating and ranking EDITOR NOTE: For more information about Renewal Communities, visit http://www.hud.gov/oflices/cpd/ezec/index.cfm Renewal Community Partners 11artner Leveraged Resources II 1 City of Corpus Christi Seawall, Development Center, Juvenile Assessment Center, Public Health and Safety, Park and Recreation, Museum, Library, Streets, Convention Center, Multipurpose Arena, Latchkey, HOME, ESG. CDBG, Weed and Seed, Safe Haven, SEEDTECH, DEFY, Minority Business Opportunity Committee, Grant Development, Police Department. Corpus Christi Independent School District GED Training and Employability Skills. Coastal Bend Workforce Development Board Job Task Analysis. Corpus Christi Beach Association Boardwalk Construction, Annual Festivals. Corpus Christi Chamber of Commerce Education/Workforce Committees, Transportation Committees, Government Affairs Committees, Volunteerism, Communications, Economic Development Activities. Corpus Christi Regional Economic Development Promote the area for targeted new Investment and job creation. Work with developers to rehabilitate buildings. Corporation Corpus Christi Regional Transportation Authority Improve overpasses at Alameda and Staples Streets, Route 15, 16, 78, 29. Del Mar College Counseling, Technical Assistance, Training Seminars, Workshops, Advocacy, Research Studies, Resource Information. Counseling in Accounting, Bookkeeping, Business Planning, Cash Flow, Financing and Development, Government Contracting, Human Resources, Minority Business Development, Strategic Planning. Gulf Coast Council of La Raza Job Training, Childcare, Volunteerism, Skills Training Programs, Social Services, Drug Abuse Education, Health Education, Residential Shelter, Foster Home Placement, Counseling. Metro Ministries Job Placement, Transportation, Childcare, Healthcare, Meals, Job Training and Education Placement, Emergency Services, Case Management. Nueces County Community Action Agency Head -Start Programs, Early Head -Start Programs, Information and Referral Services, Neighborhood Councils, Weatherization, Comprehensive Energy Assistance Program, Down Payment Assistance, Community Service Block Grant. Texas A&M University -Corpus Christi Business and Non -Profit Training, Economic Development Projects, Activities Partnering with Community Agencies. Texas Department of Economic Development For Selected Projects - Refunds of State Sales and Use Taxes for Eligible Items, Refunds for Taxes Paid on Labor and for Building Rehab, and Electricity and Natural Gas used by the Project, Rebates on New Jobs Created, Franchise Tax Economic Development Credits. Texas General Land Office Corpus Christi Beach Nourishment Project. Westside Business Association Promote RC Initiatives Through Outreach, Newsletters, Distribution to members, Adopt -A- School, Informational Meetings, Volunteerism. Workforce Network, Inc. Job Matching and Referral, Assistance with Insurance Appeals, Job Search Training, Stress Management, Assertiveness Training, Resume and Specialized Workshops, Career Assessments, Computer Skills Training, Referral and/or Sponsorship of Educational Training, On -The -Job Training, Integrated Intake, Support Services for Job Re-entry. YMCA Chiidcure, Summer Camp Care, Recreational Programs. YWCA Parenting Skills, Self -Esteem Building and Other Services for Enriching Women's and Girl's Lives, Total Leveraged for Renewal Community $150 million + Tax Incentives in the Renewal Community Type of Benefit Renewal Community Description AN 41 'Mility Credit against Federal Taxes up to $1,500 for business for each year of designation for every January 1, 2002- December 31, 2009 Employment Credit existing employee and new hire who lives and works in the RC. Work Opportunity Tax Credit Credit up to $2,400 against Federal taxes for business for each new hire from groups that January 1, 2002- December 31, 2009* have high unemployment rates, or other special employment needs, including youth ages 18 to 24 who live in the RC and summer hires ages 16-17 who live in the RC. Welfare to Work Credit Two-year credit against Federal taxes for businesses that hire long-term family assistance January 1, 2002- December 31, 2009* recipients. Credits up to $3,500 for the first year and $5,000 for the second year for each new hire. Increased Section 179 Allows business to claim increased Section 179 deduction (up to $20,000 in additional After December 31, 2001 Deductions expensing increasing to $35,000 for property acquired after December 31, 2001) if the business qualifies as a Renewal Community Business. Can be claimed on certain depreciable property such as equipment and machinery. Commercial Revitalization Deduction of either one-half of qualified revitalization expenditures (QREs) in the first year After December 31, 2001 Deduction a building is placed in service or all of QRF.s on ratable bases over 10 years if QREs have been allocated to revitalization of commercial building located in the RC. Environmental Cleanup Cost Businesses can elect to deduct qualified cleanup costs of hazardous substances in certain Property does not need to be in an RC. Need from State Environmental Deductions areas in the tax year the business pays or incurs the cost. certification Agency. Includes costs paid or incurred prior to January 1, 2004. Qualified Zone Academy Bonds State or local governments can issue bonds at zero percent interest cost to them to finance January 1, 2002 to December 31, 2009* (QZABs) public school programs with private business partnerships. Private businesses must contribute money, equipment or services equal to 10% of bond proceeds (which may qualify as a charitable contribution). The Federal government pays interest in the form of tax credit to banks, insurance companies, and certain lendingcorporations that hold QZABs. Zero Percent Capital Gains Rate The holder, for a minimum of 5 years of an RC asset acquired before January 1, 2002 to January 1, 2002 to December 31, 2009 for RC Assets December 31,2009, will not have to include in its gross income any qualified capital gain Low -Income Housing tax Credit from the sale or exchange of the asset. Ten-year credit against federal taxes for owners of newly constructed or renovated rental Project must receive allocation of state's housing who set aside a specified percentage of units for low-income persons for a annual credit ceiling or use multifamily minimum of 15 years. The credit varies for new construction and renovation. housing tax-exempt bonds that receive allocation of State's bond volume cap. Allocations are made on basis of State Plan. The project does not have to be in the RC to qualify. New Market Tax Credit Equity investors in qualified community development entities (CDEs) can obtain a tax credit Allocation of the credit will be made against federal taxes of 5 to 6 % of the amount invested for each of the year the investment annually from 2001 to 2007 to qualified is held, for up to 7 years of the credit period CDEs Investors must purchase stock or partnerships interest in a CDE for cash at original issuance. Credit available at time of purchase (1 Year) and on 6 anniversary dates of acquisition of investment. *Pending congressional extension. EXISTING LAND USE 2000 Pro~e~l~,d Office [] ~ Fe~Jq 14 CITY COUNCIL AGENDA MEMORANDUM DATE: January 24, 2002 AGENDA ITEM: Resolution authorizing the City Manager, or the City Manager's designee to sign the necessary documentation to accept U. S. Department of Housing and Urban Development's Renewal Community Designation in Census Tracts 1, 3, 4, 10, and 11, which is designed to stimulate economic development in these areas. ISSUE: At a special Council meeting held on Wednesday, January 23, 2002, Regional Director of Department of Housing and Urban Development (HUD), Cynthia Leon, informed the City of HUD's decision to offer renewal community designation to the City of Corpus Christi based on an application previously approved by the City Council. In order to accept the renewal community designation, the Council must authorize, by resolution, all of the necessary documents. We solicit the Council's approval. W. Thomas Utter Assistant City Manager AGENDA MEMORANDUM BACKGROUND INFORMATION On January 23, 2002, the City of Corpus Christi's Census Tracts 1,3,4,10, and 11 were designated by U.S. Housing and Urban Development as a Renewal Community. The City was the only City in Texas that received this designation and the only community selected in Texas that was not already designated as an Empowerment Zone. The Renewal Community (RC) initiative is a new kind of partnership among Federal, State, and local governments; local businesses; and community organizations to stimulate economic development in distressed communities. HUD will designate 40 (28 urban and 12 rural) of the most distressed communities in the Nation as Renewal Communities and provide them with the opportunity for economic growth through a package of tax incentives. The selection of the Renewal Communities was based on the unemployment rate, percent living in poverty, and percent of households below 80 percent of the area median income relative to the other applications. Empowerment Zones and Enterprise Communities were given preference for the first 20 RC designations and rural communities were given preference to 12 of the RC designations. The nominated area had to meet the geographic, population and economic condition requirements to be eligible for designation. The boundaries had to be continuous, be within the jurisdiction of one or more local governments, and have a population of not more than 200,000 and not less that 4,000. ~,dditionally, the unemployment rate in the nominated area had to be at least one and one-half times the nalional unemployment rate based on 1990 census data, each census tract within the nominated area had to have a poverty rate of least 20 percent, and at least 70 percent of area households for the nominated area, as a whole, had to have incomes below 80 percent of the Household Adjusted Median Family Income. The complete application required the submission of a narrative describing the economic conditions in the RC area, Certification for Economic Condition Requirements, Public Notice Certification for Application, Certification of Economic Growth Promotion Requirement and a Course of Action. The Course of Action is a plan that demonstrates how the state and local govemment will work with community-based organizations to reduce burdens and to improve services for Renewal Community residents and businesses. HUD required the Course of Action undertake a minimum of four of six strategies. They are: reduce tax rates, increase local services, reduce crime, reduce or remove government requirements, involve community partners, and solicit in-kind donations. Notice of a public meeting was published on Sunday, July 29, 2001 inviting the public to a meeting, which was held on August 10, 2001 to solicit comments and support. In addition, a meeting with potential partners was held on August 3, 2001 to give the partners an opportunity to participate in the development of the application. The Certification of Economic Growth Requirement was signed by the City of Corpus Chdsti and the Texas Department of Economic Development. Each signatory certified that: "Each state or local government signing the certification has repealed or reduced, or will not enforce, or will reduce within the nominated area, at least four of the following five govemmental restrictions listed in IRC sec. 400E(d)(3), for at least the period that the area is designated as a RC:" 1. Licensing requirements for occupations that do not ordinarily require a professional degree. 2. Zoning restrictions on home-based businesses that do not create a public nuisance. 3. Permit requirements for street vendors who do not create a public nuisance. 4. Zoning or other restrictions that impede the formation of schools or childcare centers. 5. Franchises or other restriction on competition for businesses providing public services, including taxicabs, jitneys, cable television, or trash hauling. RESOLUTION AUTHORIZING THE CITY MANAGER, OR THE CITY MANAGER'S DESIGNEE TO SIGN THE NECESSARY DOCUMENTATION TO ACCEPT U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT'S RENEWAL COMMUNITY DESIGNATION IN CENSUS TRACTS 1, 3, 4, 10, AND 11, WHICH IS DESIGNED TO STIMULATE ECONOMIC DEVELOPMENT IN THESE AREAS. WHEREAS, the 2000 Community Renewal Tax Relief Act authorized the U. S. Department of Housing and Urban Development ("HUD") to designate 40 Renewal Communities and seven new urban Empowerment Zones; WHEREAS, HUD received more than 100 Renewal Community applications from communities around the country; WHEREAS, Urban Renewal Community applicants were ranked according to their 1990 Census rates of poverty, unemployment and Iow-income households; WHEREAS, existing Empowerment Zones and Empowerment Communities also received a preference in rating and ranking; WHEREAS, bonus points were given to communities having Iow crime and communities that were identified by General Accounting Office as being an extremely distressed area; WHEREAS, only the most economically distressed communities were awarded designation as a Renewal Community; WHEREAS, on January 23, 2002, HUD announced that the City of Corpus Christi will be designated a "Renewal Community," eligible to share in an estimated $17 billion in tax incentives to stimulate job growth, promote economic development and create affordable housing; WHEREAS, the 2000 Community Renewal Tax Relief Act established the Renewal Community Initiative that will encourage public-private collaboration to generate economic development in 40 distressed communities around the country; WHEREAS, as a result of this Renewal Community designation, Corpus Christi will receive regulatory relief and tax breaks to help local businesses provide more jobs and promote community revitalization; WHEREAS, A. Cynthia Leon, Regional Director for HUD has stated that "These tax incentives will help businesses grow in some of our country's most challenging communities, by creating the incentives that will promote job growth and economic development, we are joining with the private sector to restore economic vitality and restore whole communities in the process;" R24011A1.doc WHEREAS, Mayor Loyd Neal has stated that "The City of Corpus Christi has worked hard for this designation and we couldn't be more pleased. These tax cuts bring businesses, jobs, and growth through the rest of the decade. So this is great news for now and for our future;" WHEREAS, Renewal Communities will use the power of public and private partnerships to build a framework of economic revitalization in areas that experience high unemployment and shortages of affordable housing; WHEREAS, an estimated $6 billion in tax incentives are exclusively available for Renewal Communities across the country; WHEREAS, as distressed areas, Renewal Communities will also be eligible to share in an additional $11 billion in Low-Income Housing and New Market Tax Credits; WHEREAS, new Renewal Communities can take advantage of wage credits, tax deductions, capital gains exclusions and bond financing to stimulate economic development and job growth. WHEREAS, each incentive is tailored to meet the particular needs of a business and offers a significant inducement for companies to locate and hire additional workers; WHEREAS, nearly 60 percent of the residents in the City of Corpus Christi's Renewal Community live in poverty and can not afford even basic necessities for their families. WHEREAS, by cutting taxes, improving local services, and reducing crime, Corpus Christi hopes to attract businesses in the area that will make up its Renewal Community; WHEREAS, the new jobs created will help ease the 19 percent unemployment rate found within Renewal Community area; WHEREAS, the Renewal Community designation makes three types of tax credits available to businesses -- Wage Credits, Work Opportunity Credits, and Welfare to Work Credits; WHEREAS, Wage Credits are especially attractive to businesses looking to grow, since these businesses are able to hire and retain Renewal Community residents and apply the credits against their federal tax liability; WHEREAS, businesses operating in the new Renewal Community will enjoy up to a $1,500 credit for every newly hired or existing employee who lives and works in the Renewal Community; WHEREAS, Work Opportunity Credits provide businesses in Renewal Communities with up to $2,400 against their Federal tax liability for each employee hired from groups with traditionally high unemployment rates or other special employment needs, including youth who live in the Renewal Community; R24011A1,doc WHEREAS, Welfare to Work Credits offer businesses a credit of up to $3,500 (in the first year of employment) and $5,000 (in the second year) for each newly hired long- term welfare recipient; WHEREAS, the Renewal Community designation also makes three types of tax deductions available to businesses -- Commercial Revitalization Deductions, Section 'I 79 Deductions, and Environmental Cleanup Cost Deductions; WHEREAS, Commercial Revitalization Deductions permit a $12 million deductions per Renewal Community per year, with up to $10 million per project for commercial or industrial buildings developed in the Renewal Communities; WHEREAS, a business can deduct up to $5 million in the year the building is placed in service or deduct the full amount of eligible expenditures pro rata over 10 years; WHEREAS, Section 179 Deductions under the tax code allow a qualified Renewai Community business to expense up to $35,000 of additional qualified property, such as equipment and machinery, acquired each year during the period of the Renewal Community designation (2002 through 2009); WHEREAS. Environmental Cleanup Cost Deductions allow businesses to deduct qualified cleanup costs in Brownfields; WHEREAS, Zero Pement Capital Gains Rate applies to an interest in, or property of, certain businesses operating in a Renewal Community, if the asset is acquired during the period of the Renewal Community designation and held for at least 5 years; WHEREAS, Qualified Zone Academy Bonds allow state and local governments to match no-interest loans with private funding sources to finance public school renovations and programs. WHEREAS, in addition to the incentives described above, HUD will provide technical assistance to these communities to help make businesses fully aware of the many opportunities available to them; WHEREAS, to make certain the Renewal Communities are successful in the initial stages of their designations, HUD will host an Implementation Conference in the spring of 2002, where the newly designated Renewal Communities will meet to hear from experts in the fields of business, taxes and economic development; WHEREAS, like all distressed communities, Renewal Communities will also be able to take advantage of the New Markets Tax Credits that provide investors with a credit against their federal taxes of 5 to 6 percent of the amount invested in a distressed area; and WHEREAS, the Low-Income Housing Tax Credit is also available to Renewal Communities, which provides credit against Federal taxes for owners of newly constructed or renovated rental housing; R24011A1.doc NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager, or the City Manager's designee, is authorized to sign the necessary documentation to accept U.S. Department Of Housing and Urban Development's Renewal Community Designation in Census Tracts 1, 3, 4, 10, and 11, which is designed to stimulate economic development in these areas of the City. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: 24th day of January, 2002. James R Bray Jr. City Attorney R. ~)/IR~ ing / Fir~".As~istant Gity Attorney Samuel L. Neal, Jr. Mayor R24011A1 doc 15 rt" AGENDA MEMORANDUM DATE: January 29, 2002 SUBJECT: Renovation of Senior and Recreation Centers (Bond Issue Project B-2) AGENDAITEM: Motion authorizing the City Manager, or his designee, to award a construction contract in the amount of $168,465.42 with Third Coast Construction for the Renovation of Senior and Recreation Centers at the following sites: · T.C. Ayers Recreation Center · Ben Garza Gymnasium · Greenwood Senior Center ISSUE: This project was approved November 7, 2000 in the Bond Issue 2000 Package under Proposition No. 3 Park/Recreation and Museum Improvements. A consultant contract has been executed with ArchitecTKO to complete the design phase, bid phase, and construction phase. A construction contract is required to complete the construction phase; and requires City Council approval. FUNDING: Funds for this project are available in the Park Department's FY 2001 - 02 Capital Improvement Budget. RECOMMENDATION: Staff recommends approval of the motion as presented. Marco A. Cisneros Director of Park & Recreation ? ~(n~el iR. Escobar, P.E., ' Director of Engineering Services Additional Support Material: Exhibit "A" Background Information Exhibit "B" Project Budget Exhibit"C" Bid Tab Summary Exhibit "D" Location Map AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION SUBJECT: Renovation of Senior and Recreation Centers (Bond Issue Project B-2) T.C. Ayers Recreation Center · Ben Garza Gymnasium Greenwood Senior Center PRIOR COUNCIL ACTION: 1. November 14, 2000 - Ordinance canvassing returns and declaring the results of the Special Election held on November 7, 2000, in the City of Corpus Christi for the adoption of seven propositions; adoption and levying a sales and use tax pursuant to Section 4A of The Development Corporation Act as approved by the voters in Propositions 4 and 5 (Ordinance No. 024269). 2. January 30, 2001 - Motion authorizing the City Manager, or his designee, to execute an engineering services contract in the amount of $69,816 with ArchitecTKO for the following projects: (Motion 2001-027). · Oak Park Recreation Center · Joe Garza Recreation Center · T.C. Ayers Recreation Center · Ben Garza Gymnasium · Greenwood Senior Center 3. July 10, 2001 - Motion authorizing the City Manager, or his designee, to award a construction contract in the amount of $172,000 with Sal-Con, Inc. for the Renovation of Senior and Recreation Centers at the following sites: (Motion 2001- 252) · Oak Park Recreation Center · Joe Garza Recreation Center 4. January 15, 2002 -Approval of the FY 2001-2002 Capital Improvement Budget. (Ordinance No. 024730). PRIOR ADMINISTRATIVE ACTION: 1. October 18, 2000 - Distribution of Request For Qualifications (RFQ) No. 2000-08 - (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. 2. November 10, 2000 - Addendum No. 1 to the Request For Qualifications (RFQ) No. 2000-08 - (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. 3. January 10, 2001 - Addendum No. 2 to the Request For Qualifications (RFQ) No. 2000-08 - (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. ~EN GIN EERIN G',DATA 1',HO ME~.YN DAS~GEN~PARK$~-2~CON STRUC?ION CONTRACT i¢2ABACKGROUND DOC EXHIBIT "A" Page I of 3 FUTURE COUNCIL ACTION: None PROJECT BACKGROUND: On Tuesday, November 7, 2000, the City of Corpus Chdsti held an election to consider a number of ballot propositions to fund major capital improvements for the community, Bond Issue 2000. The November 7, 2000 election was held jointly with Nueces County and coincided with the Presidential Election. The Bond issue 2000 package includes $30.8 million in projects to be funded from ad valorem property taxes (a General Obligation Bond Issue) in Public Health and Safety, Parks and Recreation/Museum, and Street Improvement projects. The proposed projects target the City's most immediate needs to improve existing physical facilities, provide for growth, and protect the City's investment in its infrastructure. Proposition No. 3 Park/Recreation and Museum Improvements includes improvements to renovate four senior and six recreation centers city-wide. This project proposes to address ADA compliance, electrical upgrades, HVAC renovations and minor structural repairs. Each one of the facilities will have a specific renovation need due to the varied ages of the facilities. The recreation centers are generally much older than the senior centers and are in greater need for renovation. PROJECT DESCRIPTION: The project consists of ADA upgrades and renovations including: · minor demolition; · bathroom modification; · built-up roofing (Ben Garza Gymnasium); · asphalt paving and striping; · concrete sidewalks; · finish carpentry and millwork cabinet replacement; · door hardware replacement; · painting; toilet accessories and compartments; · mechanical upgrades; · plumbing; · room signage; and, · electrical upgrades. BID INFORMATION: The project consists solely of a base bid. The city received proposals from seven (7) bidders on January 16, 2002. (See Exhibit "C") The bids ranged from $168,465.45 to $264,700.00 Third Coast Construction of Corpus Christi, Texas is the lowest responsive bidder. The Engineer's estimated construction cost for the project is $182,590. The City's consultant, ArchitecTKO and City staff recommend that based on Iow bid and past satisfactory experience a contract be awarded in the amount of $168,465.42 to Third Coast Construction of Corpus Christi, Texas for the Renovation of one senior center and two Page 2 of 3 recreation facilities. CONTRACT TERMS: The contract specifies that the project will be completed in 120 calendar days, with completion anticipated by the end of June 2002. FUNDING: Funds for this project are available in the FY 2001-02 Park & Recreation Capital Improvement Budget. ~'~ENGIN E ERIN G~.DATA 3 ~HO ME~LYNDAS~G E N~PARKS~-2~CO N STRUCTIO N CONTRACT ~2~ACKGROUND.OOC EXHIBIT "A" Page 3 of 3 B-2: RENOVATE SENIOR & RECREATION FACILITIES T.C. AYERS RECREATION CENTER (#3201) BEN GARZA GYMNASIUM (#3202) GREENWOOD SENIOR CENTER (#3203) PROJECT BUDGET January 29, 2002 FUNDS AVAILABLE: IPark 2000 Bond Fund FUNDS REQUIRED: ESTIMATED BUDGET 260,573.00 Construction Cost (Third Coast Construction) $ 168,465.42 Construction Contingencies 31,472.58 Design Consultant (ArchitecTKO) 33,379.00 George CIower 1,243.00 Engineering Reimbursements 9,000.00 Testing 5,000.00 Bond Issuance 3,256.00 Administrative Reimbursements 3,500.00 Incidental Expenses (Printing, Advertising, etc.) 2,000.00 Art in Public Places 3,257.00 Total ..................................................................................................... $ 260,573.00 EXHIBIT "B" I I T TABULATION OF BIDS DEPARTMENT OF ENGINEERING - CITY OF CORPUS CHRISTI, TEXAS TABULATED BY: A gel R. Esobar, P.E.. Director of engineering Services DATE: Wednesday. January 16, 2002 TIME OF COMPLETION: 120 Calendar Days ENGINEER'S ESTIMATE $782,590.00 Renovate Senior and Recreation Centers 7_C. Ayers(OMI) Ben Garu(13202) Gmwavod(#=) DESCRIPTION OTY. UNIT Third Coat Construction 4307 S. Pat Bldg. Suse 106 C.C., TX 78415 PRICE AMOUNT Sal Can Inc. PO Box 71771 C.C., TX 78405 PRICE AMOUNT Interior BNB Specelbes PO Bar 57 Seguin, TX. 78156-0057 PRICE AMOUNT Commit Corp PMB 205 3636 Alameda Sle. B C.C., TX. 78411 PRICE AMOUNT BASE & T.C. AYEtS RECREATION CENTER 541,294.48 $41,000.00 $32,98I1.0O $34.500.00 BEM GARZA RECREATION CENTER $58,247.35 $52,500.00 $56.091.00 $48,600.00 GRE74WOOD SENOR CENTER $68,92359 $80,500.00 $99,824.00 5116,990.00 TOTAL BASE BD: $168,465.42 $174,000.00 $188,895.00 $200,090.00 EXHIBIT "C" Page 1 of 2 TABULATION OF BIDS DEPARTMENT OF ENGINEERING - CRY OF CORPUS CHRISTI, TEXAS TABULATED BY: Angel R. Ember, P.E., Okedor of engineer" SwAces DATE: Wednesday, Jerxmy 16, 2002 TIME OF COMPLETION: 120 CalendarDeys ENGINEER'S ESTIMATE $182,590.00 Renowele 5~ and Reaerbn Cenlers T.C. Ayem(8=01) MCC Construction Corp. McMe ComNclimnMDCC EM Inc. Ben Garm(AW(12) PO Box 181079 4514 Essex PO Box 280318 Greernro)d(#3203) C.C., TX. 78418-1079 C.C., TX 78413 C.C., TX. 78426-0316 ;PRICE DESCRPTION QTY. UNIT PRICE AMOUNT PRICE AMOUNT AMOUNT PRICE AMOUNT BASE M. T.C. AYERS RECREATION CENTER $27,388.00 $W.400.00 BM OARZA RECREATION CENTER $54,777.00 $121,357.00 $203.500.00 5209.700.00 $72,500.00 $141,800.00 $284,700.00 GREEMMIOOD SENIOR CENTER TOTAL BASE BD: EXHIBIT acyl Page 2 of 2 N IH37 T.C. AYERS RECREATION CENTER CITY PROJECT N0.$201 BEN GARZA RECREATION CENTER CITY PROJECT N0.3202 GREENWOOD SENIOR CENTER ;ITY PROJECT N0.$205 LOCATION NOT TO SCALE EXHIBIT "D" RENOVATE SENIOR and RECREATION CENTERS (Bond Issue Project B-2) CI~Y OF CORPUS CHRISTI, TEXAS CZTY COUNCIL EXHT_BT_T DEPAI~7~ENT OF ENGINEERING SERVICES PAGE: I of 1 DATE: 01-22-2002 16 CITY COUNCIL AGENDA MEMORANDUM Date: January 23, 2002 AGENDA ITEM: (a) Ordinance approving a sixty-year ground lease at Corpus Christi International Airport between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation; providing for severability; and providing for publication. (b) Ordinance repealing Ordinance No. 024717 ( December 18, 2001) which approved a one-year ground lease at Corpus Christi International Airport between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation; and rescinding the first-reading approval (on the same date) of a long-term ground lease at the Airport between those parties. ISSUE: In connection with the Singapore project to locate a major aircraft refurbishing facility at Corpus Christi International Airport, the City Council on December 18, 2001 approved on first reading a long-term lease to the Corpus Christi Economic Development Corporation. The lease provides for a sublease from the EDC to a company owned by Singapore Technologies Aerospace, Inc. The term of the lease was specified as 30 years subject to earlier termination of payment of bonds for the project (to be issued for 20 years) or earlier expiration of the sublease. In subsequent discussions with Singapore it became clear that the intention of the parties was that the lease term should be consistent with the expected life of the facility. This is estimated to be at least 60 years which is the maximum authority for a lease under the City Charter. The EDC and City stalTbelieve this is reasonable considering the magnitude of the project and the potential for substantial, good paying jobs. Negotiations continue as to provisions of the sublease and financing documents. Some revisions of prior Council actions may be necessary as a result of final negotiations. A temative target for completion of the bond sale and finalization of all related documents is April 30, 2002. To meet this schedule, first reading of the revised long-term lease should occur January 29 The revised ordinance is attached. Consistent with this action, the previous action approving a long-term ordinance on first reading ordinance is rescinded and the one-year lease also adopted on December 18 is repealed. RECOMMENDATION: That the above ordinances be approved as submitted. Tom Utter 2IRB4000.001 AN ORDINANCE APPROVING A SIXTY-YEAR GROUND LEASE AT CORPUS CHRISTI INTERNATIONAL AIRPORT BETWEEN THE CITY OF CORPUS CHRISTI AND THE CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PUBLICATION. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager is hereby authorized to execute a sixty-year "Ground Lease at Corpus Christi International Airport Between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation," substantially in accordance with the attached Exhibit A, incorporated herein for all purposes. SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. 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 4. This ordinance shall become effective upon the expiration of sixty days tbllowing the date of its final adoption by the City Council. 2JRB4000.003 AN ORDINANCE REPEALING ORDINANCE NO. 024717 (DECEMBER 18, 2001) WHICH APPROVED A ONE-YEAR GROUND LEASE AT CORPUS CHRISTI INTERNATIONAL AIRPORT BETWEEN THE CITY OF CORPUS CHRISTI AND THE CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION; RESCINDING THE FIRST-READING APPROVAL (ON THE SAME DATE) OF A LONG-TERM GROUND LEASE AT THE AIRPORT BETWEEN THOSE PARTIES; AND DECLARING AN EMERGENCY NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. Ordinance No. 024717 (December 18, 2001) is repealed. SECTION 2. The first-reading approval by the City Council on December 18, 2001 of an ordinance approving a long-term ground lease at Corpus Christi International Airport between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation is rescinded. SECTION 3. That upon written request of the Mayor or five Council members, copy attached, to find and declare an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs, such finding of an emergency is made and declared requiring suspension of the Charter role as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency measure this the __ day of ,2002. ATTEST: Armando Chapa City Secretary Samuel L. Neal, Jr. Mayor, The City of Corpus Christi APPROVED THIS THE DAY OF James R. Bray, Jr., City Attorney _, 2002: 2JRB4000.002 Black-lined Copy January 24, 2002 Ground Lease at Corpus Christi International Airport Between the City of Corpus Christi and the Corpus Christi Regional Economic Development Corporation ~n v^~ (60 Y T ) x ...... - ear erm [his Lcasc is between the CITY OF CORPUS CIIRISTi. a Texas municipal corporation (the "City"), and the CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION, a Texas nonprofit corporation, (the "CCREDC'). Recitals: Whereas, the City owns the Corpus Chxisti Intemational Airport (the "Airport"), located in Nueces County, Texas; Whereas, the CCREDC desires to lease a certain parcel of land at the Airport to construct a master-planned aviation maintenance facility at the Airport ultimately to be subleased to Visizn Tec-~ a Sublessee initially identified as Corpus Christi Aerospace, Ltd. ("VT A.~r.~") as a subtessee(referenced herein as "CC Aero'~ or the "Sublessee"). as set out in Section 556; Whereas, the parties wish to enter into a written lease for land on which the CCREDC will construct said aviation maintenance facility, which shall include no less than two, and up to six: aircraft hangars, each capable of accommodating a wide-body aircraft, with related ramp improvements adjacent to the west taxiway (collectively the "Facility") under the terms and conditions heroin contained; Whereas, in entering into this Lease, the City is exercising its authority as a home rule city under the Constitution of the State of Texas, including but not limited to its authority under Texas Local Government Code Chapter 380 and the Resolution adopted by the City on December 18, 2001 pursuant to Chapter 380 of said Code: Agreement: 1. Definitions. For purposes of this Agreement. the following words and phrases shall have the following meaning. 'Airport' shall mean the tract of land. xvith all improvements thereon and to be constructed thereon, designated as the 'Corpus Christi International Airport'. 'Aviation Director' shall mean the Aviation Director of the Corpus Christi International Airport as from time to time appointed by the City. 'Bank' shall mean Bank of America, N.A. 'Bank Mortgage' shall mean that deed of trust, pledge and collateral assignment in favor of the Bank described in Section 10 below. 'Bonds' shall mean the Corpus Christi Industrial Development Corporation's Industrial Revenue Bonds (Corpus Christi Aerospace, Ltd. Project). 'CC Aero' shall mean Corpus Christi Aerospace, Ltd., a Texas limited partnership. 'City' shall mcan the City of Corpus Christi. Texas. 'City Manager' shall mean the City Manager of the City of Corpus Christi, Texas. 'CCREDC' shall mean the Corpus Christi Regional Economic Development Corporation, a non-profit corporation organized and existing under the laws of the State of Texas. 'Environmental Laws' shall mean the Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901, et seq, as amended ('RCRA'); the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. Sections 9601, et seq, as amended (original act known as 'CERCLA' or 'Superfund'; the amendments are known as 'SARA'); the HSWA amendments to RCRA regulating Underground Storage Tanks ('USTs'), 42 U.S.C. §§ 6991- 6991(J), as amended: the Clean Air Act 42 U.S.C. { 740l, et seq. as amended ('Clean Air Act'): the Federal Water Pollution Control Act, 33 U.S.C. §§ 1951 et seq, as amended ('TSCA'); the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801 et. Seq., as amended ('HIMTA'); National Pollutant Discharge Elimination System Permit requirements; and any other or futura federal, state or local statute, law, regulation, rule, ordinance implementing or otherwise dealing with the subject matter of the preceding federal statutes. 'Financing Documents' shall mean the Bonds, the Reimbursement Agreement and the Letter of Credit documents described in Section 8 below. 'Hazardous Materials' shall mean without limitation (1) those substances included within the definitions of 'hazardous substances', 'hazardous materials', 'toxic substances', or 'solid waste' of any Environmental Law: (2) those substances listed in the United States Department of Transportation Table (49 CRF 172 and amendments thereto) or designated by the Environmental Protection Agency (or any successor agency) as hazardous substances (40 CRF Part 302 and amendments thereto), (3) any materials, waste, or substance which is (A) petroleum, (B) asbestos; (C) polychlorinated biphenvls; (D) flammable explosives; or (E) radioactive materials; and (4) such other substances, materials, and wastes which are or become regulated or controlled under any Environmental Law." 'Legal Requirements' shall mean laws and ordinances of all federal, state, city, and county governments, and rules, regulations, orders, directives and all permits, licenses and regulatory approvals of all departments, subdivisions, bureaus, agencies or offices thereof, and of any other governmental, public or quasi-public authorities having jurisdiction over the Premises, whether now or hereafter in force. 'Option Premises' shall mean the property consisting of approximately twenty (20) acres upon which up to four (4) additional Hangars may be constructed at the election of CC Aero, and which is described in Exhibit B hereto, together ~vith any improvements 91 any time located -2- thereon. 'Premises' shall mean the property consisting of approximately ten (10) acres of land located at the Airport upon which Hangar 1 and Hangar 2 are to be constructed, and which is more particularly described in Exhibit A hereto, together with any improvements at any time located thereon. At such time as CC Aero has exercised its option as to any part of the Option Premises, the applicable real property and any improvements at any time located on the Option Premises shall thereafter be included within the meaning of the "Premises" to the extent the terms of this Sublease are applied to such real property. 'Reimbursement Agreement' shall mean the Letter of Credit and Reimbursement Agreement documents between the CCREDC and the Bank described in Section 8 below. 'Release' shall mean any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, disposing or dumping into the environment of any Hazardous Materials (including the abandonment or discarding of barrels, containers or other closed receptacles containing any Hazardous Materials). 'Sublessee? shall mean Corpus Christi Aerospace, Ltd. or such other sublessee of the CCREDC as may be approved by the City Council as provided herein. 2. .4=-Premises. The City leases unto the CCREDC an area located on the west side of the terminal as described on the attached and incorporated Exhibit A (the "Premises") for the construction and operation of the Facility, which site contains approximately ten (10) acres of land, together with easements and access for ingress and egress. Additionally, the City grants to the CCREDC an option to lease up to an additional twenty (20) acres of land adjacent thereto as described on the attached and incorporated Exhibit B (the "Option Premises") for the construction and operation of additional phases of the Facility. Upon the exercise of any of the options granted herein, such portion of the Option Premises covered by the exercise of the option shall be and become part of the Premises as described herein. The City Manager may adjust the boundaries set forth in Exhibits A and B consistent with the purposes of this Lease, so long as the tract described in Exhibit A does not exceed ten acres and the tract described in Exhibit B does not exceed twenty acres ..... : .... ~., ,~:.~., ~nx sixty (60) years 3. 2. Term. This lease is for a term of al:v ............ j ...... j ~v~ gi *~'" ~ .... r ........ :~ ~ .... 2002 (the "Effective be ~ing at 12:01 a.m., on ............................ Date") ~d ending at 12:00 midnight, Dccc~er 2!, 202! , 2062 (the "Te~ination D ..... x. · ...... ~ Date"), subject to e~lier temination as provided herein. 4. 3. Ground Rent. (a) Calculations. As a substitute for fair market value rent payments and pursuant to U.S. Department of Transportation Federal Aviation Administration (FAA) policies and procedures concerning the use of revenue, Section VII.B.5.. the City shall charge the CCREDC as Ground Rent under this Lease the reimbursable costs of providing aeronautical services and [hcilities to thc Premises. such cost being based upon the cost of City staff services, any loss of revenue due to decreased use of lands for agricultural purposes and other expenses as documented in accordance with City policies and FAA regulations. The amount of reimbursable costs to be paid as Ground Rent for the first year of this Lease shall be $10,000.00 per year. Such amount shall be subject to adjustment in future years based upon the actual amount of reimbursable costs determined by the City in accordance with the FAA policies and procedures. The City shall give written notice to the CCREDC of any adjustments and the basis therefor at least ninety (90) days prior to the commencement of each Lease year. Otherwise, the same amount shall apply for the next succeeding Lease year. (b) Payment. The City shall bill the CCREDC the amount of the reimbursable cost to be paid as Ground Rent under this Lease on a quarterly basis, which amount shall be due and payable on the last day of each calcndar quarter during the Lease. Any such payments not paid within ten days of the due date shall be considered past due. (c) Agent. The City Manager, or his designee ("the City Manager") appoints the Aviation Director, or designee, (the "Aviation Director") as agent to receive all rentals and reports under this Lease. 5. ~1. Use of Premises. The CCREDC shall cause the Premises to be used solely for r~:':"', ,,.,,,,j aviation-related operations, including without limitation, aviation maintenance and related activities consistent with the scope of the Facility' provided that, the use of any improvements on the Premises financed by the Bonds shall be limited to such uses as may be allowed in activitiea.connection with the Bonds. The CCREDC and its ~'ah!e~cv. Sublessee shall have preferential use only of any apron(s) constructed by the CCREDC. (a) Parking. The CCREDC and its sub!csaccSublessee shall be authorized to park on the Premises all Facility and employee automobiles, trucks, vans and similar vehicles, sales representatives and customers without the payment of any additional fees to the City. The CCREDC shall cause its sutflesseeSublessee nevertheless to comply fully with all of the Aviation Director's reasonable rules and regulations for parking and using vehicles at the Airport. (b) Signs. The CCREDC and its suNcggccSnblessee may install on the Premises signs or other corporate identification of the business. The size. type. design and location of such signs or -4- other corporate identification shall be subject to the Aviation Director's prior written consent, which consent shall not be withheld unreasonably. (c) Rates. The CCREDC shall cause its sublc:aceSublessee to provide its services at the Airport on a lair, equal and nondiscriminatory basis, and to charge a fair, reasonable, and nondiscriminatory price for each anit of sale or service: provided that such sublesseeSublessce shall be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. Nothing herein contained is intended to be construed as vesting in the City any power or authority to regulate the charges for services rendered on the Premises by the " .Sublessee. (d) Prohibited activities and uses. The following activities and uses are expressly excluded from this Lease and the CCREDC and its subtesseeSublessee are prohibited from any such use or activity: (1) Ground Transportation for hire. (The CCP~DC'z sub!c:sccSublessee may provide ground transportation for its employees as a service; however, said service may not be offered to the general public on a commercial basis.) (2) Automobile Rental Service. (3) News and sundry sales. (4) Advertising concessions except for those that may be conducted within the Facility. (5) Barber, valet and personal services. (6) The sate of food or drink, except from dispensing machines located within the Facility; however, no cafe or cafeteria type of service may be operated except as ma,/be provided solely for the employees and subcontractors of the Sublessee. (7) The sale of flight or trip insurance. (8) Commercially engaging in the business of making reservations for hotels, motels and other lodging. (9) Sale of fuel to any aircraft or the transfer of fuel intofrom any aircraft or from any aircra~.other than those being serviced bv the Sublessee. (10) For profit charter flights. (11) Flight or ground instruction, except instruction or training for employees or agents of the ~Sublessee is allowed. (e) Non-Exclusive Right To Use Airfield. The CCREDC and its subtesseeSublessee shall have a non-exclusive right to use the public areas of the Airport facilities including the rtmways, taxiways, aprons, ramps and navigational aids, and facilities, in accordance; with the applicable federal, state, and local laws, rules, and regulations. (f) Parking for Aircraft. The Sublessee shall be authorized to park aircraft at the Airport on ramp areas ontside the Premises on such terms and conditions as may be approved bv the City in the Sublease. -5- (g) Acceptance of Premises. The CCREDC shall cause its zu~lczzccSublessee to acknowledge that it has inspected the Premises and accepts the Premises in their present physical condition. 6. 5. Assignment and Sublease. (a) Except as explicitly set forth in this Section, the CCREDC shall not assign, sell. convey, transfer, mortgage, or pledge this Lease or any part thereof without the prior written consent of the City. Any restrictions which form a part of any such written consent granted must be incorporated into a written instrument and form a part of this Lease· The City authorizes the CCREDC to sublease the Facility to VTCC Aero, and the City hereby consents to the sublease of the Premises to VTCC Aero in accordance with the terms of a Sublease (the "Sublease") approved by the City ~.lanager. Council. The City additionally authorizes the CCREDC to mortgage its leasehold interest in the Facility to Bank of America, N.A., and the City hereby consents to such leasehold mortgage in accordance with the terms of a Leasehold Mortgage (as hereinafter defined) approved by the City Manager. Neither the CCREDC nor any subtesseeSublessee shall use, or permit any person to use, the Premises, for any purposes other than as the-Faei4it~.provided heroin. (b) Change in Control. If'the CCREDC or its subtesseeSublessee merges, consolidates, acquires, affiliates, or associates with any other person, company, corporation or other entity, or in any maimer whatsoever either is bought out or buys out another person, company, corporation or other entity, and such merger, consolidation, affiliation or association results in a change in control or management of the operations authorized herein, then in that event, such merger, consolidation, affiliation; or association will be considered by the City as an assignment of this Lease which requires the prior written approval of the City. (c) Other Changes ?,tame ckmngzz ............. k_..cc.~:~,: .... ~"* dc -~* ..... ~* :" ~ CC~DC and its Sublessee shall be ~e~itted to assign this Lease or sublet ail or an~ pa~ of the Premises to a parent, subsidi~ or affiliated corporation, pa~nership or other business entity (which shall be an entity w~ich controls, is controlled by or is under common control with. such pa~) without obtaining the consents required above. 7. 6. Right to Amend· If the FAA, or its successors, requires modifications or changes in this Lease as a condition precedent to granting funds for Airport improvements, the CCREDC and its rmblesseeSublessee agree to consent to the amendments, modifications, or changes of this Lease as may be reasonably required to obtain the funds; provided, however, that neither party will be required to pay increased rent or change the use of the Premises or accept a relocation or reduction in size of the Premises or materially change its methods of operations until the CCREDC and the City have executed an amendment to this Lease that is mutually satisfactory to all parties for any terms or conditions of this Lease affected by such actions or tee 8. 7. Subordination to U.S./FAA Requirements. (a) This Lease is subordinate to the provisions of any existing or future agreement between the City and the United States relating to operating or maintaining the Airport, the execution of which has been or may be required as a condition to the expenditure of federal funds for the development of the Airport. -6- The City shall work with the CCREDC and its Sublessee in any such event to give such parties reasonable notice of any future agreement so as to permit such parties to consider its potential impact their operations and to make requests and recommendations with regard to the content of such future agreement. If the effect of such agreement with the United States is to take any of the Premises under this Lease out from the control of the City, the CCREDC or the Sublessee. or to substantially destroy the commercial value of the Premises. ~ ..... ~ r,: ................. ;,~ · r'r'r'r'r'r'*hen regardless of whether or not an actual condemnation has actually ta ~ :"~* ........ ,:~- r.^~ ,~.~ r~a~.~, .......... , r,.~- ,t.~ ,.~.:.~ ar .... ~' Pr:miata.occurred, it shall be treated as such and the remaining provisions of this section shall apply. (b) If, during the term of this Lease, the entire Premises is condemned for public use under right of eminent domain, then this Lease shall be canceled and terminated as of the date possession is required by the condemnor. In such event, the proceeds of the aggregate condemnation award payable to the CCREDC or its Sublessee shall first be applied to pay the amount necessary to retire the Bonds. As to any remaining condemnation proceeds, the parties shall be entitled to make claims therefor as stated herein. (c) If during the term of this Lease, any part of the Premises is condemned for public use under right of eminent domain and if the Sublessee terminates the Sublease, the CCREDC may terminate this Lease; provided that if the Bonds remain outstanding at such time, it pays or otherwise provides for the payment of the remaining amount due on such Bonds. If the Sublessee shall not elect to terminate the Sublease. the CCREDC agrees to utilize its best efforts to restore and rebuild the Premises in order to provide the Sublessee, as far as possible, all of the improvements and building facilities existing before the taking. In the event of the award of any damages in excess of the amount required for building revision, such amount shall be applied to the payment of the Bonds until such Bonds are discharged. (d) In any such proceeding whereby all or a part of the Premises is taken, whether or not this Lease is terminated, each party, including tbe Sublessee. shall be free to make claim against the condemning party for the amount of the actual provable damage resulting from such proceeding. (e) The City shall inform the CCREDC and its Sublessee promptly if it has notice or knowledge of the pendency of any such taking, condemnation or intended transfer of all or a portion of the Premises, the land or other improvements or any change in their configuration and shall keep the CCREDC and its Sublessee informed about such action, so that they may participate in negotiations with the condemnor. The Sublessee shall have the right to assert, pursue and realize its claims against the condemnor and the CCREDC or the City (but only to the extent of the CCREDC's or the City's interest in any condemnation award or settlement in lieu thereof) whether such proceeding ',,,-as commenced before or after the commencement date of the Sublease for (i) the value of any leasehold improvements installed by the Sublease at its expense; (ii) trade fixtures and personal property on the Premises; (iii) the value of the Sublessee's leasehold interest; and (iv) the Sublessee's damages for business interruption, relocation expenses and moving expenses. -7- (l) In the event streets, alleys, driveways (public or private), or sidewalks abutting the Premises or areas in which the Sublessee has parking or access rights am changed by condemnation by the City, the state or any public authority in such manner as to materially impair, in the Sublessee's reasonable opinion, the parking and/or ingress and egress of vehicular or pedestrian traffic to the Premises. the CCREDC may terminate this Lease by written notice to the Citx x~ithin sixty (60) days aficr first receiving notice of' such change: prnvidcd that if the Bonds remain outstanding at such time. it pays or otherwise provides for the payment of the remaining amount due on such Bonds. 9. .8,-Construction of Improvements. (a) Plans. All plans and specifications for the improvements related to the construction of each phase of the Facility upon the Premises shall meet all of the City's fire and building code requirements. Upon final completion and acceptance of the Facility by the CCREDC, the CCREDC shall cause two sets of mylar as-built plans and one electronic copy of the record documents to be provided to the Aviation Director, who will keep the plans on file at the Airport and provide a copy to the City Secretary. Further, the CCREDC shall cause said documents to be kept current, by requiring that t~o sets of mylar as-built plans and one electronic copy of all record documents showing any alteration in excess of $15,000 to the Facility during the Lease to the Aviation Director in the same manner as provided for the Original plans and specifications. The exterior design, color scheme, and plans and specifications for the Facility must be approved by the Aviation Director, which approval shall not be unreasonably withheld. The plans and specifications as approved by the Aviation Director must be in compliance with all code requirements as presented. No substantial changes or alterations must be made in said plans or specifications after initial approval by the Aviation Director without the consent of the Aviation Director, which consent shall not be unreasonably withheld. (b) Permits. The CCREDC shall cause its gub!czo°ee. Sublessee, at its expense, to obtain all licenses and permits required for any maintenance, repairs, construction on, or use of the Premises. The cost of developing all plans and specifications as provided herein and the construction of improvements and facilities upon Premises shal.,,~, v .... ~v.~.~ ~ ........... ~ not be an expense to the City whatsoever. (c) Ownership of Facility. The parties intend for the initial two hangars constructed as part of the Facility to qualify as an "airport facility" under Section 142 of the Internal Revenne Code, as amended (the "Code"), and the parties further recognize and acknowledge that the ....... j~uch hangars must be "governmentally-owned" in order for the Bonds to qualify as tax- exempt obligations. In entering into any sublease, the CCREDC agrees, if the Bonds are issued as tax-exempt obligations, not to take any action, or omit to take action, that would result in the Bonds not qualifying as tax-exempt obligations under the Code. The same two requirements shall apply to any future Hangars that may be financed with tax-exempt obligations under the Code. Upon the termination of this Lease and payment of the Bonds and discharge of all of thee CCREDC's obligations under the other Financing Documents~ ....................... ~:~r.~, .~c._~,and any future documents in connection with any tax-exempt financing, the City's ownership of the Facility shall be free and clear of all liens, leases and otber encumbrances and adverse interest in property and improvements. -8- ~ Remodeling and Repairs. During this Lease, the CCREDC and its ~Sublessee shall (subject to the other terms and conditions of this Lease) have the continuing right to remodel, renovate and refurbish the Facility and any improvements and facilities thereon, or any part thereof, and to build and construct new additions and improvements thereto and thereon, provided notice has first been given to the Director of Aviation, whose approval of the modifications must not be unreasonably withheld. (-P)~ Required Provisions and Bonds. The CCREDC shall include in any construction contract or subcontract all provisions required by the Aviation Director relating to the operations of the contractor on the Airport; and such provisions shall include a payment and performance bond for any work in excess of $100,000 (or such creater limit as approved by the parties) to be per/brined by the CCREDC or the contractor. (-g-)(t3 Liens. Except as provided in Section r)lO hereof, the CCREDC and its sul:!czzzeSublessee shall not allow a lien to attach to the Premises or the CCREDC's leasehold interest without the prior written approval of the City Manager. Notwithstanding the City Manager's approval, the City's fee simple estate in the surface of the property burdened by the CCREDC's leasehold estate must be exempt from such lien, and any lien shall contain the following language: "Lender agrees that the lien created by this instrument is effective only as to the CCREDC's leasehold estate created by the lease dated the __ day of , 200 ,2002. executed by the City of Corpus Christi, as the City, and the CCREDC, as the lessee, and does not affect the C~t.'s interest, being the fee simple estate burdened by the CCREDC's leasehold estate." or such other language as is approved by the City Attorney. ~ Foreclosure. In the event of any foreclosure by the Bank or any other Leasehold Mortgagee (as hereinafter defined) of its lien or liens on the leasehold interest in the Facility, fixtures, or trade fixtures located on the Premises, such Bank or other Leasehold Mortgagee succeeds hereunder to all rights, privileges, and duties of the CCREDC, including without limitation paying rent, as if said Bank or other Leasehold Mortgagee were originally named tenant herein, and such Bank or other Leasehold Mortgagee shall have a reasonable time after date of foreclosure (not less than three hundred sixty (360) days) to sublease the remaining Improvements to such parties as may be approved by tile City in writing. (4)(h) Certificate of Occupancy. The CCREDC covenants that the construction of the initial hangar improvements, including all workmanship and materials, will beof 5rzt class .... ~:* .... '~ ,-,::: k~ in accordance with the plans and specifications approved by the Aviation -9- City's Building Official is satisfied that such construction is so in compliance, the Building Official shall deliver a Certificate of Occupancy to the CCREDC and its .......... Sublessee. After completing any alteration to the Premises, the CCP. EDC': o°uSD, aaccSublessee must certify to A;iation Director that thc alteration was completed according to the approved plans and specifications complying with all applicable laws, and regulations. (:~-)(i) Alterations. The CCREDC and its smbtesseeSublessee, shall not make any external alteration that exceeds $15,000 or any internal alteration that exceeds $ ! 5,0005100,000 or install any fixtures (except trade fixtures, equipment, furniture and other items of personal property removable without material damage to the Premises) during the Lease without the Aviation Director's prior written approval, which shall not be unreasonably withheld. If the Premises are damaged by such removal, they must be immediately repaired. (k-)ii) Construction Indemnity. The CCREDC and its ;uS!eaaccSublessee shall include in all construction contracts entered into bv them, a provision requiring the contractor to indemnify, hold harmless, dcfend and insure tl~e City. including its officers, agents, and employees, against the risk of legal liability for death, injury or damage to persons or property, direct or consequential, arising or alleged to arise out of, or in connection with, the performance of any or all of such construction work, v,'hctker ~-,~,-~-~ ...... J ~o.:n' such form as may be approved pursuant to the Sublease. The CCREDC shall require its subtesseeSublessee to furnish, or require the contractor to furnish, insurance as required in Section g-I-22 herein. 10. 9. Leasehold Mortgage. (a) It is anticipated that CCREDC will obtain financing to construct the Facility required by its sublease xvith VT Acrathe Sublessee through industrial development revenue bonds (the "Bonds") to be issued by the Corpus Christi Industrial D I pm Corpo ti ' It i ticip d that the Bonds will be secured by a letter of credit (the "Letter of Credit") from the Bank in favor of the Truztzctmstee of said Bonds, pursuant to a credit agreement between the CCREDC and the Bank (the "Credit Agreement"). It is further anticipated that the CCREDC will grant to the Bank a deed of trust lien, pledge and collateral assignment (the "Bank Mortgage") in and against the leasehold interest granted to it in this Lease, as well as in and against its sublease with Y-T-CC Aero, to secure the payment all obligations of the CCREDC under the Bonds, the Credit Agreement, and any other related financing documents (collectively referred to herein as the "Financing Documents"). The City acknowledges that the Bank would not issue the Letter of Credit but for the City's consent to the Leasehold Mortgage and collateral assignment of this Lease as set forth herein. (b) As used herein, "Leasehold Mortgage" means the Bank Mortgage and any other mortgage or deed of trust covering the CCREDC's leasehold interest in this Lease given by the CCREDC to Bank or to any other third party ("Leasehold Mortgagee") to secure repayment of funds advanced or to be advanced by a Leasehold Mortgagee to the CCREDC to construct the Facility on the Premises (the "Project"). As used herein, "Leasehold Mortgagee" means the -10- mortgagee or beneficiary under the Leasehold Mortgage. As used herein, "mortgage" means any mortgage, deed of trust, collateral assignment, pledge or other indenture consisting of a lien on the CCREDC's leasehold interest created hereunder, together with any promissory note or obligation or bond which it secures. Subject to the conditions set forth herein, the CCREDC is hereby authorized to mortgage its leasehold interest created hereunder, solely for the purpose of (1) obtaining financing to construct the Project. including any additional construction or alteration thereof made subsequent to the initial construction, (2) refinancing such construction mortgage, and (3) providing financing in connection with the assignment or transfer by the CCREDC of its interest in this Lease and its leasehold interest created hereunder; provided, however, that, with respect to the financing described in clauses (2) and (3) above, the principal amount of any such mortgage must not be greater than the original principal amount of the mortgage obtained to construct the Project, including any additional construction or alteration thereof made subsequent to the initial construction, and further provided: (i) Such mortgage in no way affects or diminishes the City's interest in the Premises, or its rights under this Lease, nor relieves the CCREDC of any of its obligations hereunder, (ii) Under no circumstances is the City's fee simple interest in the Premises subordinate to such mortgage; (iii) Such mortgage covers no interests in any real property other than the CCREDC's and ~TOv~u:oZsthe Sublessee's leasehold interest in the Premises hereunder; and (iv) The making of such a mortgage by the CCREDC will not be deemed to constitute an assignment or transfer of this Lease, nor will any mortgagee, as such, be deemed an assignee or transferee of this Lease, until after foreclosure of the same. (c) Rights of Leasehold Mortgagees. No Leasehold Mortgage is binding upon the City in the enforcement of its rights and remedies under this Lease and by law provided, unless, and until, a copy thereof has been delivered to the Aviation Director. The City Manager agrees to execute an estoppel certificate and any other similar documentation as may reasonably be required by the Leasehold Mortgagee so as to certify to the status of this Lease and to the performance of the CCREDC hereunder as of the date of such certification. The CCREDC shall furnish Aviation Director a written notice setting forth the name and address of any Leasehold Mortgagee. If a Leasehold Mortgagee or purchaser at foreclosure of the mortgage acquires the CCREDC's leasehold interest in the Premises, by virtue of the default of the CCP,_EDC under the mortgage or otherwise, this Lease will continue in full force and effect so long as the Leasehold Mortgagee or purchaser at foreclosure is not in default hereunder, including the obligation to timely pay rent. For the period of time during which the Leasehold Mortgagee or any purchaser at foreclosure of a mortgage holds the CCREDC's leasehold interest in the Premises, the Leasehold Mortgagee or such purchaser becomes liable and fully bound by the provisions of this Lease during such time. With respect to any Leasehold Mortgagee of the Premises. the City agrees that the following apply: -11- (i) If requested by a Leasehold Mortgagee, who is duly registered in writing with the Aviation Director, any notice from the City affecting the Premises must be simultaneously delivered to the CCREDC and such Leasehold Mortgagee at its registered address, and if so registered, no notice of default or termination of this Lease affecting the Premises given by the City shall be deemed legally effective until and unless like notice has been given bv thc Aviation Director to suct~ Leasehold Mortgagee. (ii) Any Leasehold Mortgagee entitled to such notice shall have any and all rights of the CCREDC with respect to the curing of any default hereunder by the CCREDC. (iii) The City will not enter into any material modification of this Lease affecting the Premises without the prior written consent thereto of each Leasehold Mortgagee who becomes entitled to notice as provided in this Section. The foregoing does not apply nor may be construed to apply to any right the City may have to terminate this Lease pursuant to its terms. The CCREDC shall provide any Leasehold Mortgagee with notice of any proposed modification. (d) Termination. If the City elects to terminate this Lease for any default by the CCREDC with respect to the Premises, the Leasehold Mortgagee that has become entitled to notice as provided in this Section has not only any and all rights of the CCREDC with respect to curing of any default with respect to the Premises, but also the right to postpone and extend the specified date, for a maximum of six (6) months, for the termination of this Lease (Leasehold Mortgagee's Right to Postpone) in any notice of termination by the City to the CCREDC (the "Termination Notice" as defined in Section 16), subject to the following conditions: (i) The Leasehold Mortgagee must give the Aviation Director written notice of the exercise of the Leasehold Mortgagee's Right to Postpone at least ten (10) days prior to the date of termination specified by the Aviation Director in the Termination Notice and simultaneously pay to the Lessor all amounts required to cure all defaults then existing and owing by CCREDC under this Lease (as of date of the exercise of Leasehold Mortgagee's Right to Postpone) which may be cured by the payment of a sum of money. (ii) The Leasehold Mortgagee also must promptly undertake to cure, diligently prosecute, and, as soon as reasonably possible, complete the curing of all other defaults of the CCREDC specified in the Termination Notice which are susceptible of being cured by the Leasehold Mortgagee. (iii) The Leasehold Mortgagee's exercise of its Right to Postpone may extend the date for the termination of this Lease specified in the Termination Notice for a maximum of six (6) months. (iv) If, before the date specified for the termination of this Lease as extended by a Leasehold Mortgagee's exercise of its Right to Postpone, the Leasehold Mortgagee has cured the defaults specified in the Termination Notice and no further defaults with respect to the Premises have occurred which not have been timely cured, then all defaults -12- under this Lease with respect to the Premises will be deemed to have been cured, and the City's Termination Notice will be deemed to have been withdrawn. (v) Nothing herein may be deemed to impose any obligation on the City's part to deliver physical possession of the Premises to a Leasehold Mortgagee. (vi) If more than one Leasehold Mortgagee seeks to exercise any of the rights provided for in this Section, the most senior lienholder is entitled, as against the others, to exercise such rights. Should a dispute arise among Leasehold Mortgagees regarding the priority of lien, the Leasehold Mortgagees must prove to the satisfaction of the City Attorney that they have settled that dispute. 11. 10. Repairs And Maintenance. The CCREDC shall cause its subtesseeSublessee to make any and all repairs and replacements necessary to keep the Premises in a c.,o, .~o ~ ............. good order and condition, normal ~vear and tear excepted, and keep and ...... make any and all repairs and replacements necessary to the Premises in safe repair ~*'~" remedy any defects of a structural nature. The CCREDC shall cause its subtesseeSublessee to providc janitorial serxice and maintenance to keep the Prcmises in a clean, attractive and sanitary condition at all times. The landscaping must be well maintained and kept in a neat and tidy condition. The Aviation Director shall have the right to inspect the Premises during Lessor's normal business hours with reasonable prior notice. The CCREDC shall cause its suldesseeSublessee to repair any and all damage caused to real and/or personal property of the City occurring on the Premises or elsewhere on the Airport as the result of the willful or negligent acts, or omissions of the CCREDC or its ~Sublessee, their employees or agents, and not the result of acts or omissions of the City, its employees or agents. As to the paved common use areas of the Airport, the CCREDC has no obligation to make any structural improvements to these areas, which is solely the obligation of the City, including any obligation to maintain repair, resurface, repave or cap the surface in a smooth and operable conditiom similar to other national airports; provided that the CCREDC shall be responsible for any improvements required for its construction activities and for tire repair of any damages caused during construction. 12. 12. Access to the Aircraft Operating Area (AOA). (a) The CCREDC. ................... ~ ..... , ......... ~ ................ ~ ....... u essee, an e r agents, employees shall comply, and the Sublessee shall take reasonable measures to assure that its customers, suppliers, vendors, contractors, licensees and invitees comply, with all Legal Requirements intended to protect the security and integrity of the Alcoa and the Aircrak -13- Operating Area t ..... j,, AOA ), as defined by the Airport and the FAA, ~.,4 tc ........... ;~* (b) Procedures. Subject to the approval of the Aviation Director, the CCREDC shall cause its s,abtesseeSublessee to adopt procedures to control and limit access to the AOA by the CCREDC. its ~Sublesscc and their respective contractors, suppliers of materials. furnishers of services, employees, and business invitees in accordance with all present and future Airport and FAA laws, rules, regulations, and ordinances. Physical barriers to prevent access to the Air Operations Area must be in effect during any construction upon the Premises. (c) Indemnification. The CCREDC further agrees cause its zub!czgeeSublessee to indemnify, hold harmless, defend and insure the City, its officers, agents, and employees against the risk of legal liability for death, injury, or damage to persons or property, direct or consequential, arising..v._c- ........ ~..--~ ~c~ *he.. .Ar~^.~,. v ................... out of or resulting from the Sublessee ^,k .... ; .... ~ ..... ;k~ by ,u~ c, or,~r~r, ..... k~ ....... ,k~;. rezpecti~ ..... : v ............................................. ne entor nten ona reac orvoa on of the City, Airpom ando~ FAA laws. roles, regulations, or ordinances or ~zuck .......... th~ Sublessee's Ai~ort Director-approved procedures for controlling access to the AOA. (d) ID Badges. The CCREDC and its Sublessee shall obtain employee identification badges for ali personnel authorized by them to have access to the AOA, in accordance with the provisions of Federal Aviation Regulations, 14 CFR Part 107, any other laws, rules, regulations and ordinances, and the Airport's FAA-approved security program. A fee and a deposit will be required for each badge, and a replacement fee will be required for each lost badge. Such parties shall notify the Aviation Director immediately after any such employee is terminated or loses a badge. (e) Fines. The CCREDC shall cause its subtesseeqoSublessee to shall pay any Federal Aviation Administration fines associated with security breaches or infractions by its agents~ officers, business invitees, or employees in the AOA. regardless of whether the fine is assessed to the City, Airport,o~ the CCREDC or its subless~,Sublessee, and their respective agents, officers, business invitees, or employees, which may be passed through to , ' ~ub!e~ec,~uch Sublessee and its agents or employees as set out in the City Code of Ordinances, Sec. 9-32. (e-)(f) Movement into Aircraft Operations Area ("AOA"). The CCREDC and its sub!c::ccSublessee shall have access to the Airport's AOA, subject to compliance with all applicable FAA and Airport security procedures. Mc;'emcnt cf al! a;.rcra~ c,nd perze, nzAccess for employees, aaents, contractors and customers, and movement for aircraft, from the Premises i~to the AOA and from the AOA kqto the Premises mugtshall be cleared in accordance with Airport and FAA rules and regulations. Thc CCREDC'~ zub!e:;~ccSuch Sublessee is primarily responsible for opening and closing any security gates and doors permitting access to or from the Premises from or to the AOA. -14- d-)~ Vehicles in AOA. No vehicles owned or operated by the CCREDC or its su4desseeSublessee may operate within the movement or non-movement areas of the AOA except in compliance with FAA and Airport regulations. ¢g-) h(~ Airport Certification. The CCREDC shall cause its sub!co~sceSublessee to compl5 with all rules that arc applicable to its operations on thc Airport under thc Airport Certification Rules of the Federal Aviation Regulations, Part 139, as amended [14 CFR Part 139, as amended]. Copies of the FAR are available in the office of the Aviation Director. (i) 14 CFR Part 77 Requirements. The CCREDC shall cause its suldess~Sublessee to comply with the notification and review requirements set out in Part 77 of the Federal Aviation Regulations [14 CFR Part 77], as amended, if it plans to construct or modify any present or current structure, anterma, or building located on the Premises. Copies of the FAR are available in the office of the Aviation Director. (j) Control of Structures. The CCREDC shall cause its subtesseeSublessee to not erect nor permit the erection of any structure, anterma, or building, nor permit the growth of any tree on the Premises, which has highest point above a mean sea level elevation established by FAA and the City as a height limitation on such structure, antenna, building, or object. The City may enter the Premises and remove the encroaching structure, antenna, building, or object at the expense of the ' .Sublessee. (k) Aerial Approaches. The City Manager may take any action he considers necessary to protect the Airport's aerial approaches against obstruction, including the right to prevent the CCREDC or its subtesseeSublessee from erecting, or permitting to be erected, any building, antenna, or structure on or adjacent to the Airport, which in the City Manager's opinion, would limit the usefulness of the Airport or constitute a hazard to aircraft. (1) Right to Overflight. The City hereby reserves, for the use and benefit of the public, a right of flight for the passage of aircraft above the surface of the Premises, together with the right to cause in the airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for flight in the air, using the airspace for, landing at, or taking off from, or operating on the Airport. -15- 13. Hazardous Substances. (a) TI.~ F~PDI~FI~ ~:~ ...... <n~;.,,:~. c ...... D~:,~ and General. Neither the CCREDC nor its Sublessee shall cause or permit any l {azardous Materials to be used. stored, or gcncratcd on. or transportcd to and from the Premises except in compliance with all applicable Environmental Laws, including without limitation after obtaining all ~u~ required regulatory permits. Tile CCREDC shall cause its Sublessee to give the City's Aviation Director written notice of any Hazardous Materials to be used, stored or generated on the Premises. Such Sublessee shall cause any and all Hazardous Materials removed from the Premises for final disposal, to be removed and transported solely by duly licensed handlers to duly licensed facilities. -16- {b) Release of Hazardous Materials. Neither the CCREDC nor its Sublessee shall cause or permit a Release on, or under the Premises or into any ditch, conduit, stream, storm sewer, sanitary sewer connected thereto or located thereon, soils, ground water or the atmosphere, except to the extent permitted by applicable Environmental Laws. (c) Compliance with Environmental Laws. The CCREDC and its Sublessee shall comply with all applicable Environmental Laws. (d) Documentation. The CCREDC shall cause its Sublessee to promptly provide the City upon written request with (i) a copy of any Hazardous Material management plan or similar document required by any federal, state or local governmental or regulatory authority to be submitted by such Sublessee with respect to the use of Hazardous Materials. (ii) copies of permits, licenses, and other governmental and regulatory approvals with respect to the use of Hazardous Materials, (iii) copies of hazardous waste manifests reflecting the legal and proper disposal of all Hazardous Materials removed from the Premises; and (iv) copies of reports~ studies and written results of tests or inspections concernine the Premises with respect to I lazardous Materials. (e) Testing and Inspection. The City's Aviation Director shall have the right, upon reasonable written notice, to enter the Premises and to (i) conduct any testing, monitoring and analysis for Hazardous Materials, and (ii) review all storage, use, transportation and disposal facilities and procedures associated with the storage, use. transportation and disposal of Hazardous Materials. Nothing herein, however, shall limit the right of the City's Fire Department or other public safety officials from inspecting the Premises at any time as allowed by law. (f} Notice of Release or Claim. The CCREDC shall cause its Sublessee to give prompt verbal notice to (1) the Airport's Public Safety Office, and (2) all ememency response centers and environmental or regulatory agencies as required bv Environmental Laws, of the following: (i) any proceeding or inquiry by, notice from, or order of any governmental authority with respect to the presence of any Hazardous Material on, under or about the Premises or the migration thereof from or to other property; (ii) all claims made or threatened by any third party against the Sublessee or the Premises relating to any loss or injury resulting from any Hazardous Material; and (iii) any Release that occurs on the Premises bv such Sublessee. Such Sublessee shall provide the City's Aviation Director with written confirmation of the verbal report within 72 hours of such occurrence of any of the foregoing. Regardless of the ultimate party liable for same, each party shall cooperate fully with each other and the Airport in order to enable any Release to be remedied expeditiously and efficiently. (g) Remediation and Indemnification by CCREDC and its Sublessee. The CCREDC and its Sublessee shall undertake all required remediation or: and shall defend, indemnify. protect and hold harmless the City from and against any and all liability, obligations, losses, damages, penalties, claims, environmental response and cleanup costs, fines, penalties and actions, suits, costs, taxes, charges, expenses and disbursements, including legal fees and expenses of whatever kind or nature imposed on. incurred bv or reserved against the City in any -17- way, resulting from, any accident, occurrence or condition caused by a Release by them or their customers, vendors, contractors, suppliers, licensees, invitees, agents or employees in, on, under, about or affecting the Premises which results in any injury or death of any person or which requires the removal or treatment, storage, disposal, disposition, mitigation, clean-up or remedying of such Hazardous Materials or any other remedial action or fine under the terms of any l,c~a[ Requirement. Such obligation hereunder shall survive thc expiration ol'this Lease. (h) Remediation Easement. The City agrees that, at the expiration or earlier termination of this Lease, it will provide an access easement, in recordable form, which shall provide that in the event either the CCREDC or its Sublessee is required, by any Environmental Laws applicable to the Premises, to investigate, remediate, clean up or otherwise respond to environmental conditions existing on the Premises. such parties and their agents or contractors shall have the right to reasonable access to the Premises for the purpose of performing such investigation, remediation, etc. The term of such easement shall be for ten (10) years after the date of the expiration or termination of this Lease. (i) Material Safety Data Sheets. The CCREDC shall cause its Sublessee to keep a readily accessible file oF Material Safety Data ("MSD'"~ Sheets for all Hazardous Materials used. stored, or generated on, or transported to and from the Premises, which file must be posted and made immediately available to any Airport or City employee who responds to the scene in the event of an accidental discharge of a Hazardous Material. Such Sublessee shall attempt to determine which Hazardous Material was accidentally discharged and have that MSD sheet available for the first responders to the scene. 14. Nondiscrimination/Affirmative Action. ....................... s ........ Employment. The CCREDC and its .......... Sublessee, as a part of the consideration hereof, will not discriminate against any employee or applicant for employment because of race. creed, color, national origin, sex, age, religion, or disability. The parties will take affirmative action to action to assure that applicants are employed and that the employees are treated during employment withottt regard to their race. creed, color, national origin, sex, age, religion, or disability. Such action shall include but not be limited to the following: employment, referral for employment, upgrading, demotion, or transfer, recruitment advertising; layoffs or termination: rates of pay or other forms of compensation, and selection for training, including apprenticeship. Such Sublessee shall agree to post in conspicuous places, available to the employees and applicants for employment, notices setting forth the provision of this non-discrimination clause. (b) Services and Contracting. The CCREDC shall require that its Sublessee, in offering anv services to the public or in its contracting procedures, shall not discriminate nor permit discrimination against any person or o, roup of persons of the grounds of race, creed, color, national origin, sex, age, religion, or disability. The City shall have the right to take such action as the United States may direct to entk>rcc this covenant. The parties further acknowledge that they recognize and will comply with Executive Order 11246 and with the Civil Rights Act of 1964 and with Part 15 of the Federal Aviation Regulations. ~ (c) Affirmative Action. The CCREDC shall require that its Sublessee -18- undertake an affirmative action program to the extent required bv 14 CFR Part 152. Subpart E, to assure that no person on the grounds of race, creed, color, -~"": ........... "^"~ ~';";" ~,~:,~ Ac ~ v .......... national origin, sex, age, religion, or disability be excluded from participatimz in any bo ~.,~.:~,~a .~;~.:~;~..,:^. ;. ~u ..... or ,,.~ ,~.~: .... /.~ :- ~u~ "' app .............................. o ........................ m ovment activities covered in 14 CFR Pa~ 152. Subpa~ E. Such Sublessee shall assure that no person shall be excluded on those grounds from participating in or receiving the services or benefits of an,/ program or activit,/ covered by this subpart. Such Sublessee shall assure that it ~vill require that its covered subomanizafions provide assurances to the City that they similarly will undertake affirmative action programs and that the,/will require assurance from their suborganizations, as required 14 CFR Part 152. Subpart E to the same effect. 0~)(d) Nondiscrimination-business owner. This Lease is subject to the requirements of the U.S. Department of Transportation's regulations, 49 CFR Part 23, Subpart F. The CCREDC amt4ls-sul~esseeshall require that its Sublessee agree that theyit will not discriminate against any business owner because of the owner's race, national origin, or sex in connection with the award or performance of any concession agreement, management contract or subcontract, purchase or lease agreement, or other agreement covered by 49 CFR Part 23, Subpart F. (c-)(e) Remedy for breach. If an;,' paaysuch Sublessee breaches a non-discrimination covenant, upon due notice and opportunity to cure. the City may reenter the Premises and the Premises and all the leasehold interest therein shall revert to the City and its assigns. This provision is not effective until the procedures of Title 49, Code of Federal Regulations, Part 21 are completed, including exercise or expiration of appeal rights. -19- 15. Compliance with laws. (a) General. The CCREDC shall cause its ......... Sublessee to promptly observe, comply with, and execute the provisions of any and all present and future governmental laws, ordinances, rules, regulations, requirements, orders and directions. Failure to observe or comply xxith the albrcmcntioncd laws will subject this Lease to cancel?ation by the Cit'.xhe remedies under Section 16~ahe-L-ease. (b) Federal. The CCREDC shall cause its subtesseeSublessee to comply with all applicable Federal laws, rules, and regulations, including without limitation the Drag Frae Workplace Act, the Violence in the Workplace Act, the Americans with Disabilities Act, and any other acts that the U.S. Congress passes that applies to any entity that operates at the Airport. (c) Disadvantaged Business Enterprises (DBE). The CCREDC and its subtesseeSublessee shall understand and agree to the following assurances: It is the City'gCity's policy that DBEs have the maximum practicable opportunity to be awarded Airport contracts. The. CCREDC and itz zuS!e.zze.cSuch parties agree to use good faith efforts to promote this policy throu<,h thethis Lease at thc Airport. Additionallv. the CCVEDC shall ....... its suldesseeSublessee as an Equal Opportunity Employer, agrees to use good faith efforts to provide maximum opportunity for the consideration and use of DBEs in d~eanv contracting, subcontracting and purchasing activities associated with this--keasethe Sublease and to abide by all applicable provisions of the Airport's DBE D ........ ~ .*.;o ~ ....n~.~ CCP. EDC ~.a :.~ ~bl~s~-f~rogram and this provision. The Sublessee further shall agree that no person will be excluded from participation in, denied the benefits of, or otherwise be discriminated against in connection with the award and performance of any Airport contract because of race. color, religion, national origin, sex, age, disability, or political belief or affiliation, and as more specifically provided in Section 14 hereof.: (d) State. The CCREDC and its sg5!czseeSublessee shall covenant to comply with all applicable state laws, rules, and regulations. (e) Local. The CCREDC and its suldesseeSublessee shall covenant to comply with all applicable City ordinances, and rules and regulations promulgated by the Aviation Director. 16. C .............Termination. - 20- (a) No Termination Without Consent of Bank. This Lease may not be terminated by ~.a, CCREDC p pi CCREDC r .... ~ ..... f:x ,t.~ o^.,~o .,,~he City or the rior to its ex ration unless all of the CCREDC's obligations under the gr-edi~Bonds, the Reimbursement Agreement and the other Financing Documents ~e unpaid '";'~ ..... t.~ n n.~.' ........ have been paid and discharged in full: provided that, the CCREDEC shall have the right to abate the Rent pavane under this Lease as provided below in the event of: (i) any default bv the City such as the closure of the Airport for a period of more than sixty (60) days or the failure to provide any other service or perform any duty required of the City under this Lease: or (ii) any action by the U.S. government to take the Airport the War Powers Act, or in the case of a national emergency, or for any other purpose. if the effect of such default or action is to prohibit or prevent the Sublessee from conducting business operations from the Premises. If CCREDC's obligations under the Bonds, the Reimbursement Agreement and the other Financing Documents have been paid, either the City or the CCREDC shall have a right to terminate this Lease as set forth in subsections (b) through (f} below. (b) Termination by the CCREDC. Without limitino_, any other rights and remedies to which the CCREDC may be entitled by common law. statntorv law. or as elsewhere provided in this Lease, this Lease may be terminated bv the CCREDC at any time in the event of one or more of the following events: (i) The abandonment of the Airport for a period of sixty (60) days or more; (ii) The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control, or use of the Airport, or any substantial part or parts thereof, that substantially restricts the CCREDC or its Sublessee from operating for at least sixty (60) days; (iii) The issuance by an,/court of competent jurisdiction of an injunction that prevents or restrains the nsc of the Airport that continues for at least sixty (60) days; or (iv) Destruction or partial destruction of the Premises as the result of acts or omissions of persons other than the CCREDC or its Sublessee, their customers, vendors, contractors, suppliers, licensees, invitees, agents or employees, or as the result of acts of God or other acts ontside of the control of such parties, including without limitation fire -21- or other casualties or hazards, as a result of which the cost of replacement or restoration will equal or exceed fifty percent (50%) of the fair market value of all improvements on the Premises immediately prior to such damage. (v) Anv other occurrence not the fault of either the CCREDC or its Sublessee, their customers, vendors, contractors, suppliers, licensees, invitees, agents or employees, including without limitation, force ma/eure, which prevents such parties from using substantially all of the Premises for their intended purpose for a period of sixty (60) or more consecutive days. (vi) The default by the City in the performance of any covenant and the failure of the City to remedy the default for 150 days after receipt by the City of written notice to remedy the same. (4~)(c) Termination by the City. Without limiting any other rights and remedies to which the City may be entitled at common law, statutory law, or as elsewhere provided in this Lease, this Lease may be terminated by the City if the CCREDC: (i) Is in arrears in paying any part of the rent, fees, or charges; (ii) Makes a general assignment for the benefit of creditors; (iii) Abandons all or substantially all of the Premises or any part thereof for a period of sixty (60) days or more; (iv) Files a voluntary petition in bankruptcy; (v) Defaults on indebtedness to any lender with a security interest on any of the personal property of the CCREDC or its subtesseeSublessee at the Premises; or (vi) Otherwise defaults in the performance of any of the covenants of the CCREDC and continues the default for 60 days, or such other time as may be provided herein, after receipt of written notice from the Aviation Director of the default. (If the default is such that it cannot be cured within 60 days or such other times may be set out in the notice of default, the CCREDC is deemed to have cured the default if it within the applicable period commences performance and thereafter diligently prosecutes the same to completion.) The Aviation Director shall provide written notice to the CCREDC and any Leasehold Mortgagee of any such termination (the "Termination Notice") and the CCREDC and the Leasehold Mortgagee shall be afforded a cure period of not tess than thirty (30) days for any default provided above [but any default under (vi) above shall have a 60-day cure period as provided above]. · ~'~ Prem!zzz arc ............ ,d) The City's Right of Possession. In the event of any default by 22- the CCREDC or its Sublessee as provided above, without termination of the Lease or the waiver of any other rights hereunder the City may enter upon the ~. Premises whereupon the CCREDC and its Sublessee shall agree to surrender possession and vacate the Premises immediately and deliver possession thereof to the City. ............................. ; ....... .,, .................. ;such event. CCREDC shall cause its Sublessee to irrevocably appoints the City Manager a~s its agent to remove any and all persons or property from the Premises and place any property in storage for the account of and at expense of ............ uch Sublessee. Except for personal property belonging to third parties, all property on the Premises is hereby subjected to a contractual landlord's lien to secure payment of delinquent r-e~Rent and other sums due and unpaid under this Lease, any and all exemption laws are hereby expressly waived in favor of such landlord's lien; and it is agreed that such landlord's lien is not a waiver of any statutory or other lien given or which may be given to the City but is in addition thereto. (ii) Thc r,r, vcr~p ....... ~'~' if ;* ,~c~..~,o a.~ r,;,., ~a ...... In such event, the ............ any such property tbund on City may. on 30 days prior ~ritten notice, sell '~ ~un~,o the Premises at a public or private sale with proceeds of the sale applied first to the cost of the sale, then to the cost of storage of the prope~y, if ~y, and then to the indebtedness of thc ........ under this Lease, with the su~lus, if any, to be mailed to ~ ........ uch Sublessee at the address hcrc:n a~: ..... a If *~ Citydesignated in the Sublease. If the CC~DC te~inates and reenters the Premises, the City may retet the Premises and if a sufficient sum is not realized, after paying expenses of the reletting, to pay the rcntRent and other sums agreed to be paid by the CC~DC, the CC~DC agrees ·., Z,Z,, ~: ........ * to pay any deficiency within 30 days of *'"~*'~ ~ ......... he City's wriRen dem~d therefor, including itemized breakdown of all costs related thereto. ~e CC~DC f~her agrees, and it shall cause its Sublessee to a~ree, to hold h~less and indemnify the City~ including its officers, agents, and employees, against any loss or damage or claim arising out oi ti ..... j o,hmr action in collecting monies owedh under this paragraph, except for ~y loss, dmage, or claim caused by the negligence or willful misconduct of ....... j -. its .... v.w .... such pames. (iii) In such event, neither the CCREDC nor its Sublessee shall be released from their obligations to pay Rent and perform all of the covenants, conditions, and agreements to be performed by them as provided in this Lease and the Sublease, and the City shall not be considered guilty of trespass, eviction or forcible entry or detainer, and shall not be deemed to have relinquished any of its right to rentals or any other right in this Lease or by operation of law. (iv) In the event the City re-enters the Premises without terminating this Lease, the City is authorized (but not required) to relet the Premises on behalf of the CCREDC, either in the City's name or in the CCREDC's name. During the time which the Premises are not relet by the City, the CCREDC shall pay to the City the Rent and all other charges specified in this Lease monthly when due. The CCREDC agrees to reimburse the City for all costs expended by the City in attempting to relet the Premises, whether successful 23- or not, including but not limited to any remodeling expenses incurred and any real estate or other commissions charged. If the Premises are releL then the CCREDC agrees to pay to the City the difference between the amount of the Rent and other charges provided herein and the rental payments actually received by the City from such reletting, after deductin~ from the rentals so received all costs of regaining and reletting the Premises. l'he CCREDC further agrees that such rclctting or relettings by thc City may be for all or any portion of the remaining term of the Lease and that such relettings may be upon such terms and conditions as the City considers appropriate under the circumstances. No reletting of the Premises shall be deemed to release either the CCREDC or its Sublessee from their obligations hereunder, and the election by the City to re-enter the Premises (without terminating the Lease) and the reletting or not reletting of the Premises shall not thereafter prevent the City from electing to terminate this Lease. (4)(e) Notice of Termination. If an event of default occurs, and after due notice the defaulting party has failed to cure, the complaining party may at any time after the expiration of any cure period, and if the default has not been cured, terminate this Lease or the tenant's rights of occupancy hereunder by notice in writing. The Lease or such rights of occupancy will be terminated on the date specified in the notice but not less than 5five (5) business days from mailing the notice r~..~ ....... , ......... t.,~ ~.1., *~ ~-k~ An*~ --C.~:.~-:~. (e-)(f) Partial Destruction. If the Premises or the Facility or the Airport facilities reasonably necessary to operate the Facility are partially damaged due to acts of God or other acts outside the control of the CCREDC or the City to the extent that the Facility cannot be used, the insurance proceeds shall be used either to (i) replace the Facility or (ii) remove all trace of the Facility, take the Premises back down to raw land, and any remainder applied to the payment of the Bonds and other Financing Documents if the Bonds and such financial obligations have not been fully paid at such time. Any insurance proceeds remaining after either of the above options have been satisfied shall be paid as directed by the CCREDC. 17. Property Rights upon Expiration or Termination. (a) Removal of Equipment. Upon termination or expiration of this Lease, the CCREDC or its subtesseeSublessee may remove all removable furniture, fixtures and equipment installed by them within 30 business days after termination or expiration of the Lease. Any damage to the Premises caused by the removal of such property must be repaired within 15 business days after termination or expiration of the Lease to the satisfaction of the Aviation Director. Notwithstanding the foregoing, if the CCREDC or its subtesseeSublessee fails to remove such removable furniture, fixtures and equipment within 30 business days from the date of termination or expiration of this Lease, then the City Manager may, at his option, take title to the said personalty and sell lease or salvage the same, as permitted by law. Any net expense the City Manager incurs in behalf of the City in disposing of the personalty must be paid by the CCREDC within 10 days of the City Manager's written demand therefor including an itemized breakdown of the costs recaptured and the balance due. (b) New Lease - Equipment Removal Not Required. If the City and the CCREDC negotiate a new lease, tbe CCREDC does not have to remove its equipment or personal property. 244 (c) Improvements Revert to The City. Except for the CCREDC's personal property ........ j .............. , at the ex ration of the Lease all improvements placed on the Premises by the CCREDC shall revert to the City in accordance with the City Charter, Article VIII, Section 2, as amended. rd) tloldover. Any holding over by thc CCREDC of thc ?remises after the expiration or other termination of this Lease will be on a month-to-month tenancy at sufferance, at the then current monthly rental rate, and the CCREDC agrees to surrender the Premises upon 30 days written notice. Failure to timely surrender the Premises following notice subjects the CCREDC to a monthly hold over fee of the then current monthly rental rate for each month of delay. 18. Redelivery of Premises. Upon expiration or termination of this Lease, the CCREDC shall deliver the Premises to the City peaceably, quietly, and in as good condition as the same now are or may be hereafter improved by the CCREDC or the City, normal use and wear thereof and damage by casualty excepted. In addition to landlord's lien provided by the law of the State of Texas, the Airport has a contractual lien on alt property of the CCREDC on the Premises, which shall be second and inferior only to the Bank Mortgage, as security for payment of rent. 19. The CCREDC's Maintenance Obligations. (a) Premises. The CCREDC shall cause its subtesseeSublessee to maintain the Premises in good appearance and repair, and in a safe condition at its expense. The CCREDC shall cause its g'ab!caz,zeSublessee to maintain, repair, replace, paint, or otherwise finish all leasehold improvements on the Premises (including, without limitation, walls, partitions, floors, ceilings, windows, doors, and glass, and all furnishings, fixtures, and equipment therein). All of the maintenance, repairs, finishing and replacements must be of quality at least equal to the original in materials and workmanship. (b) Quality of Maintenance. It is thc intent of the Axiation Director and the CCREDC that all improvements will be maintained in such a manner as to keep the Facility intact, in good repair, and in such condition that it will be usable at the end of the Lease. The CCREDC shall cause its sabtesseeSublessee to comply with the maintenance obligations of Sections ~4~11 and 19 and with all applicable governmental laws, rules, or regulations. The Aviation Director is the sole judge of the quality of such maintenance, which must be reasonable and consistent with other Airport properties. The Aviation Director may at any time, during the City's normal business hours, with reasonable prior notice, enter upon the Premises to determine if the CCREDC is fulfilling the maintenance requirements of this Lease. The Aviation Director must notify the CCREDC in writing of any default. If the required maintenance in the Aviation Director's notice to the CCREDC is not commenced by the CCREDC within 15 business days after receipt of written notice, or is not diligently prosecuted to completion, the Aviation Director may enter upon the Premises and perform the subject maintenance, and the CCREDC agrees to reimburse the Airport for its cost within 30 days after Aviation Director's written demand therefor, together with copies of all bids for the repairs and maintenance. 25- (c) Correct Hazards. The CCREDC shall cause its subtesseeSublessee to immediately correct any hazardous or potentially hazardous condition on the Premises after receipt of notice from the Aviation Director. At the Aviation Director's discretion, the CCREDC shall require its subtesseeSublessee to close the Premises, or any affected portion, until the hazardous or potentially hazardous condition is removed or corrected. 20. The City's Obligations: (a) To operate Corpus Christi International Airport as a public airport during this Lease subject to the assurances given by the City to the United States Government under the Federal Airport Act. (b) To make water, gas, and wastewater service available to the property lease line upon the same basis as applies to other businesses on the Airport. The CCREDC shall cause its subtesseeSublessee to pay for utility usage charges for water, gas, wastewater, electricity and other utilities supplied to the Premises during the Lease as such charges become due and payable. 21. Indemnification. (a) General. The CCREDC shall cause its :ublc::ccSublessee to indemnify, hold harmless, defend and insure the City, its officers, agents, and employees from and against any and all claims and causes of. action, administrative proceedings, judgments, penalties, fines, damages, losses, demands, liabilities, or expenses whatsoever (including reasonable attorney's fees and costs of litigation, mediation and/or administrative proceedings) which may be brought, alleged, or imposed against thc City, its officers, agents, or employees arising directly or indirectly from or in any way connected with (i) any property damage or loss, personal injury, including death, or adverse effect on the environment arising out of any action or inaction of the ......... Sublesscc with regard to its operations hereunder, including the use or occupancy of the Premises, or in providing access to secured areas of the Airport as set out herein, excepting only such ';~":':'- ............ ,~ r.~ ~. ...... approved by the City Manager; (ii) the failure of such :uble::cc,Sublessee~ its agents or employees, to comply with the terms and conditions of this Lease, or to comply with any applicable federal, state, or local laws, rules, regulations, or orders including, but not limited to, any and all federal, state, or local environmental laws, rules, regulations, or orders; or (iii) release of any..-~.." .... ~v~o'~ .... ~:' ..~,-.-..-'-*~'~ o-oo....-.o~""~' ..... .~r wa~teHazardous Substances onto, into, or from the Premises or other Airport property connected in any way with the .......... Sublessee s operations or the action or inaction of such su ........ Sublessee, its agents or employees, regardless of whether the act, omission, event, or circumstance constituted a violation of applicable law at the time of the occurrence. The rights and obligations set forth in this Paragraph shall survive the termination of this Lease. (b) Special Claims. The CCREDC shall cause its sublesseeSublessee to defend, at its own cost, and protect, indemnify, and otherwise hold harmless, the City, including its officers, 26- agents, and employees (including but not restricted to the posting of bond and release of attachment) from and against any and all claims in any way arising out of or in connection with the construction, repair, or maintenance work undertaken hereunder by, through or on behalf of the CCREDC or its subtesse~,Sublessee= or arising out of or in connection with the operation of the concession under this Lease, including but not restricted to attachments, liens or levies, and whether or not the claim is meritorious, made, t:ailcd or asserted by any party other than the CCREDC or its subtesseeSublessee against the City, including its officers, agents, and employees or the Premises or improvements thereon or part thereof, or monies owing to the Airport. (c) Notice. Notwithstanding the above indemnifications, the CCREDC shall give the Aviation Director notice of any matter covered hereby and forward to the Aviation Director copies of every demand, notice, summons, or other process received in any claim or legal proceeding covered hereby within 443ten (!0) working days of the CCREDC's receipt of said notice, demand, summons, etc. 22. Insurance. (a) The CCREDC shall cause its subtesseeSublessee to provide insurance in .t, ................. ~ ...... cf cc;'cragc~for property and casualty risks and liability risks in such forms and amounts as are reasonably required by the City's Risk Manager consistently applied to similar operations. Such insurance company(les) shall provide the Aviation Director and the Risk Manager certificate(s) of insurance30~o '~ ...... v--~-; ..... ,v ~..~*' ....... ~.~.~.~ ,~.u...~.~,~.~--"; ......... ~a~*~ cf thc~..~,.~ccc~*;"~ ~r~'~ cc..k~.,~ ~-~,~ ....... .,...~..~;~k ....... annually, which show(s) the level and type of insurance. The insurance company(ies) shall provide the Aviation Director 30 days written notice, by certified mail, prior to cancellation, non-renewal, or material change in the insurance policy(ies). (b) The City's Risk Manager will annually assess the level and types of insurance in the manner required by thethis Lease. The Risk Manager can increase or decrease the level or types CCREDC ................ notice no less than 6090 days prior to the of insurance by giving the ~a; ..... ~-~ ..... __ E .................. Leaac;existing insurance policy stating the annual anniversary date of the basis for such adiustment; however, such increase or decrease of the level or type of insurance must be comparable with, and no greater than, the minimal levels or types of insurance of other tenants with similar activities on the Airport. The CCREDCmmMls-suldessee shall have 3060 days to procure the changed insurance and provide written proof of insurance to the Aviation Director. (c) All insurance required by this Lease must be primary insurance, and not in excess of or contributing with other insurance which the ' - Sublessee may carry. All policies must name the City as an additional insured or loss payee. The insurance policies as required by this Lease must apply separately to the City, as if separate policies had been issued to such ~Sublessee and the City. (d) The amounts of all required insurance policies must not be deemed a limitation of the covenant to indemnify the City, and if the ' - Sublessee or the City becomes liable in an amount in excess of the amount(s) of such policies, then the CCREDC's sublcgzceSublessee must indemnify the City from the whole thereof, excepting only such except 27- ag,,..,o, .... or cmp!~ycca.matters as may be approved by the City Manager. 23. Notice. Notices are sufficient if in writing; and sent by certified mail, return receipt requested, postage prepaid, or by overnight delivery service, or by facsimile as addressed below: If to the City: If to the CCREDC: Aviation Director Corpus Christi International Airport 100 International Drive Corpus Christi, Texas 78406 ph: (361) 289-0171 fax: (361) 289-0251 President Corpus Christi Regional Eco. Dev. Corp. 800 N. Shoreline Drive, Suite 1300 South Corpus Christi, Texas 78401 ph: (361) 882-7448 fax: (36l) 882-9930 If to Bank: Bank of America, N.A. Attn: Ted Puckett 500 N. Shoreline Blvd. Corpus Christi, TX 78401 Pk:vh: (361) 881-6797 Fax:fax: (361) 881-6809 or to such other address as may be designated in writing from time to time. All notices sent by certified mail are deemed received on the third business day after mailing. All notices sent by overnight delivery are deemed received on the next business day after being sent. All notices sent by facsimile are deemed received on the day sent. Any party may change its address by giving notice to all other parties as set out herein. 24. Arbitration. Both parties shall work in good faith to resolve any dispute under this Lease. Any dispute, controversy or claim arising out of, in connection with or relating to this Lease shall be resolved through arbitration held in accordance with the Commercial Arbitration Rules of the American Arbitration Association ("AAA") utilizing one arbitrator, except to the extent inconsistent herewith. If the parties fail to agree on the appointment of a person to serve as arbitrator within thirty (30) days from the date on which the claimant's notice of arbitration has been received by the other party, the AAA will act as the appointing authority. The seat of the arbitration under this Lease and the rendering of any interim or final award shall be conducted in Corpus Christi, Texas. No punitive, exemplary or other multiple damages may be awarded in the arbitration. The arbitrator shall have iurisdiction to decide all questions of arbitrability and arbitral iurisdiction. The arbitrator may issue interim awards and order any provisional measures that should be taken to preserve the rights of either party. Each party shall bear its own costs of processing the arbitration. Any interim or final award rendered by the arbitrator shall be in writing ,and shall set forth findings of fact and the reasons for the award. 28- 25. GENERAL PROVISIONS. (a) Mineral Rights. The City expressly reserves all water, gas, oil and mineral rights in and under the soil beneath the Premises. (b) No Waiver of Forfeiture. Any t;ailurc or neglect of thc City Manager or thc CCREDC at any time to declare a forfeiture of this Lease for any breach or default whatsoever hereunder does not waive the City's right thereafter to declare a forfeiture for like or other or succeeding breach or default. (c) Force Majeure. Neither the City nor the CCREDC will be deemed to be in breach of this Lease if either is prevented from performing any of its obligations hereunder by reason of force majeure. Force Majeure means any prevention, delay, or stoppage due to strikes, lockouts, labor disputes, acts of God, including inclement weather and/or periods of rain or snow, inability to obtain labor or materials, or reasonable substitutes therefor, governmental restrictions or requirements, governmental regulations, goverrnmental controls, inability to timely obtain governmental approvals, enemy or hostile government action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of thc party obligated to perfbrm. All such events excuse the performance by such party for a period equal to any such prevention, delay, or stoppage, including; the obligations imposed with regard to commencement or payment of rental and other charges to be paid by the CCREDC pursuant to this Lease and the obligation of the City to deliver the Premises. (d) Quiet Enjoyment. The City covenants that it has the authority to execute this Lease, that at commencement of the Lease, the City has good title to the Premises and that throughout the term hereof, the CCREDC will have peaceful and uninterrupted possession of the Premises subject to its payment of Rentals and other charges and to its performance of the covenants of the Lease. The City agrees to remedy any violation of quiet enjoyment caused by the City or one of the other Airport Tenants and to honor the CCREDC's tenancy for the term of the Lease. (e) Rules and Regulations. The Aviation Director may adopt and enforce Rules and Regulations, to be uniformly applied to similar uses and users of similar space, which the CCREDC agrees to observe and obey with respect to the use of the Premises and the Airport, and the health, safety and welfare of those using the Premises and the Airport. (f) Headings. The titles and headings in this Lease are used only for reference, and in no way define or limit the scope or intent of a provision of the Lease. (g) Venue. Venue of any action brought under this Lease lies in Nueces County, Texas, exclusively, where the Lease was executed and will be performed. (h) Successors and Assigns. Subject to the limitations upon assignment and transfer herein contained, this Lease binds and inures to the benefit of the parties hereto and their respective successors and assigns. 29- (i) No Third Party Benefit. No provision of this Lease creates a third party claim against the City of Corpus Christi, the Airport, or the CCREDC, beyond that which may legally exist in the absence of any such provision. (j) Taxes and Licenses. To the extent that such Sublessee is not entitled to tax or license exemptions, abatements or waivers or other le}zal entitlement to thc reduction or relief of same: the CCREDC shall cause its subtesseeSublessee to pay all taxes of whatever character, including ad valorem and intangible taxes, that may be levied or charged upon the Premises, leasehold Improvements, or operations hereunder and upon the CCREDC's rights to use the Premises, whether the taxes are assessed against the CCREDC or the City prior to the past due date. The CCREDC shall cause its subtesseeSublessee to pay any and all sales taxes arising in connection with its occupancy or use of the Premises whether the taxes are assessed against the CCREDC or the City. The CCREDC shall cause its subtesseeSublessee to obtain and pay for all licenses or permits necessary or required by law for the construction of Improvements, the installation of equipment and furnishings, and any other licenses necessary for the conduct of its operations hereunder. If the CCREDC wishes to contest any such tax or charge, that contest will not be a default under the Lease so long as the CCREDC diligently prosecutes the contest to conclusion and promptly pays whatever tax is ultimately owed. Further, the CCREDC must pay any taxes not being contested prior to the past due date. (k) Trash and Refuse. The CCREDC shall cause its sub!z::ccSublessee to arrange for the collection and lawful disposal of all trash and other refuse resulting from its operation of the Premises. The CCREDC shall cause its zub!ezzceSublessee to provide and use suitable sealed fireproof receptacles approved by the Aviation Director for all trash and other refuse generated by the CCREDC's use of the Premises. Piling of boxes, cartons, barrels or other similar items in, or within view from, a public area is not permitted. The CCREDC shall cause its subtesseeSublessee to comply with all applicable laws and regulations relative to trash disposal, and the CCREDC must pay the costs associated with trash removal and disposal. (m) Estoppel. Both parties agree that at any time and from time to time at reasonable intervals, within fifteen (15) days after written request by the other party, such party will execute, acknowledge and deliver to the party designated by the other parry, a certificate in a form as may from time to time be provided, certifying the following, as well as any other provision reasonably requested by the other party: (i) that the CCREDC has entered into occupancy of the Premises and the date of such entry if requested; (ii) that this Lease is in full force and effect, and has not been assigned, modified, supplemented or amended in any way (or if there has been any assignment, modification, supplement or amendment, identifying the same); (iii) that this Lease represents the entire agreement between thc City and the CCREDC as to the subject matter hereof (or if there has been any assignment, modification, supplement or amendment, identifying the same); (iv) the date of commencement and expiration of the term; (v) that all conditions under this Lease to be performed by the City, if any, have been satisfied (and if not, what conditions remain unperformed); (vi) that to the knowledge of the signor of such xvriting no 30- default exists in thc performance or observance of any covenant or condition in this Lease and there are no then existing defenses or offsets against the enforcement of this Lease by the City or specifying each default, defense or offset of which the signer may have knowledge; and (vii) the amount of rent or other rental, if any, that has been paid in advance and the amount of security, if any. that has been deposited with the City. O~(m) Short Form of Lease. The parties agree to execute a short form of lease referring to this Lease and suitable for recording. (o)(n) Sublease. The parties agree and acknowledge that the CCREDC's obligations hereunder are conditioned on the delivery of a fully executed sublease between the CCREDC, as sublessor, and ~sqq~-~lmolob~Corpus Christi Aerospace, Ltd., as s,abtess~,Sublessee, to use the Facility constructed by the CCREDC upon the Premises. If Corpus Vision :r~,otogiesChristi Aerospace, Ltd. and the CCREDC fail to enter into a sublease, the CCREDC may terminate this Lease within 60 days of notice that there will be no sublease, and the Lease will automatically terminate upon the Aviation Director's receipt of the CCREDC's notice of termination for failure to execute a sublease with Vision Tcchno!ogic~ Corpus Christi Aerospace. Ltd. without further action of thc Cit.x Council being required. {p)(o) Radio Antenna. Subject to the Aviation Director's prior written approval as to height and location, which will not be unreasonably withheld, the CCREDC may furnish and install, at its own expense, a radio antenna on the roof of the building over the Premises, subject to (i) any and all zoning and other regulatory laws, ordinances, statutes, rules, regulations and orders applicable thereto, (ii) the CCREDC obtaining any and all building and other permits, licenses and other approvals with respect thereto, (iii) the antenna and building both must be structurally sound and not adversely effect the soundness of and/or the condition of the roof and/or other parts of the building, and (iv) any and all costs of maintaining and operating the same must be paid entirely by the CCREDC. Upon the expiration or termination of this Lease, the CCREDC shall remove said antenna(s) and restore any damage to the roof and/or building and Premises caused by the installation and/or remoxal thereof the CCREDC must pay for all costs for the repair and maintenance of said installation of the antenna. assessmm=l~. (-r--)(o) Requirements of Sublessee. The CCREDC may fully discharge its obligation to cause its sub!caaeeSublessee to take the actions described above in various provisions of this Lease by requiring such actions in the Sublease between the CCREDC and its subtesseeSublessee and enforcing the Sublease in accordance xvith its terms. The CCREDC shall not be required to take any further action, other than the contractual requirement as specified above, to cause such subtesseeSublessee to perform as required. 31- 26. Enforcement of Ground Lease. In the event that the CCREDC fails to perform any agreement, covenant or condition rccluircd of it under this Ground Lease and thils to cure the same after reasonable notice, the Sublessee is authorized by and on behalf of the CCREDC, and is hereby authorized and appointed as the CCREDC's attorney-in-fact, to take such actions under the Ground Lease and perform such matters as may be required of the CCREDC under the Ground Lease in order to maintain the Ground Lease in full force and effect. EXECUTED on Attest: ,2002. CITY OF CORPUS CHRISTI By: By: Armando Chapa, City Secretary David R. Garcia, City' Manager Legal Form Approved on James R. Bray, Jr. City Attorney ,2001 January .2002 By: City Attorney CORPUS CHRISTI REGIONAL ECONOMIC DEVELOPMENT CORPORATION By:. President F:\I I~Agmt.0l\EDC\City-Ground Lcasc-o0cmp.doc -32- ~r~ AGENDA CORPUS CHRISTI HOUSING FINANCE CORPORATION ANNUAL MEETING DATE: TIME: PLACE: Tuesday, January 29, 2002 During the meeting of the City Council beginning at 2 p.m. City Council Chambers 1201 Leopard St. Corpus Christi, TX 78401 1. President John Longoria calls meeting to order. 2. Secretary Armando Chapa calls roll. Board of Directors John Longoria, President Mark Scott, Vice President Brent Chesney Javier Colmenero Henry Garrett William Kelly Rex A. Kinnison Samuel L Neal Jr. Jesse Noyola Officers W. Thomas Utter, General Manager Armando Chapa, Secretary Mary Juarez, Asst. Secretary Jorge Cruz-Aedo, Treasurer Michael Harty, Asst. Treasurer 3. Approve Minutes of October 16, 2001. 4. Financial Report. 5. Resolution with respect to an application for a calendar year 2002 reservation for qualified mortgage bond authority. 6. Resolution with respect to an application for a calendar year 2003 reservation for qualified mortgage bond authority. 7. Discussion and adoption of position statement on South Texas Affordable Properties Corporation Project. 8. Public Comment. 9. Adjournment. TO: FROM: DATE: SUBJECT: Memorandum Board Members of the Corpus Christi Housing Finance Corporation W. Thomas Utter, Assistant City Manager January 24, 2002 Request for Meeting of the Corpus Christi Housing Finance Corporation (CCHFC) on January 29, 2002 I am requesting that a meeting of the Corpus Christi Housing Finance Corporation (CCHFC) be held during the Council meeting of January 29, 2002 to consider the following items: Approval of Submission of Applications for Single Family Mortgage Revenue Bond Authority for FY 2002 and FY 2003. I am requesting authority of the CCHFC to apply for Single Family Mortgage Revenue Bond Authority in the amount of approximately $21.7 million for both this fiscal year and next fiscal year. Under the guidelines of the Texas Bond Review Agency, when an application for single family mortgage revenue bond authority is turned down one year, the following year the organization is given a higher priority. We do not expect to receive an allocation during 2002, but it looks promising that Corpus Christi would receive an allocation if all conditions remain the same in 2003. Applications for 2002 must be filed before August 31 in order to make the CCHFC eligible for priority treatment in 2003. The application for calendar year 2003 must be filed October 1 in order to participate in the priority selection for calendar year 2003. Discussion and adoption of position statement on South Texas Affordable Properties Corporation Project: Negotiations are underway with both the State and the South Texas Affordable Properties Corporation on a possible Corpus Christi project. Staff anticipates having a position paper on the project available to discuss with the board at its meeting. W. Thomas Utter Assistant City Manager MINUTES CORPUS CHRISTI HOUSING FINANCE CORPORATION OCTOBER 16, 2001 5:58 P.M. PRESENT Board of Directors John Longoria, President Mark Scott, Vice President Brent Chesney Javier D. Colmenero Bill Kelly Rex A. Irdnnison* Jesse Noyola Samuel L. Neal Jr. Officers W. Thomas Utter, General Manager Armando Chapa, Secretary Jorge Cruz-Aedo, Treasurer Michael Harty, Assistant Treasurer ABSENT Henry Garrett President Longoria called the meeting to order in the Council Chambers of City Hall. Secretary Chapa verified that a quorum of the Board was present to conduct the meeting and that notice of the meeting had been properly posted. *Mr. KJnnison arrived at 5:59 p.m. President Longoria called for approval of the minutes of the July 10, 2001 meeting. Mr. Neal made a motion to approve the minutes as presented, seconded by Mr. Scott and passed unanimously (Garrett and Noyola absent). President Longoria called for discussion of the financial report. General Manager Tom Utter said the CCHFC has a fund balance of $317,758.50 as of September 30, 2001. President Longoria opened discussion to Item 5, presentation on the 1985 Single Family Mortgage Revenue. General Manager Utter said the CCI-IFC issued approximately $30 million in single family mortgage revenue bonds to provide 25-year mortgages to low to moderate income residents. He added that a provision of Federal law required that once the bonds were fully paid, all of the remaining mortgages would be forgiven. Mr. Utter stated that as of October 1,2001 there were 57 remaining mortgages released. Mr. Neal brought up the issue of forgiving $30,000 because that would put people in a different tax bracket. General Manager Utter said a letter was sent out to the residents by the trustee to inform them of their tax liability. In response to Mr. Neal, Mr. Utter said that failure to pay taxes would not become a lien, it would be a federal income tax issue. He added that staff would give information to the residences that requested guidance on the situation. President Longoria called for comments from the audience, and there were none. There being no further business to come before the Corporation, he declared the meeting adjourned at 6:08 p.m. on October 16, 2001. CC}~C011016.wpd Corpus Christi Housing Finance Corporation Balance Sheet November 30, 2001 Assets Current assets: Cash in bank Investments Due from other funds Total assets $ 43,522.84 278,968.38 $ 322,491.22 Liabilities and Fund Balance Liabilities: Accounts Payable Due to other funds Total liabilities Fund balance: Undesignated Total fund balance Total liabilities and fund balance $ 625.00 4,654.53 5,279.53 317,211.69 317,211.69 $ 322,491.22 Corpus Christi Housing Finance Corporation Summary of Transactions For three months ended November 30, 2001 Fund balance at August 1, 2001 $ 310,857.83 Revenues: Interest Application fees Re-submission fee Participation fee Issuance fee Refinancing fee Miscellaneous revenue Total revenues 2,273.39 2,800.00 100.00 10,050.00 120.00 15.00 15,358.39 Expenditures: Administrative costs Application fee refund State certification fees Texas Bond Review Board Total expenditures 9,004.53 9,004.53 $ 317,211.69 Fund balance at November 30, 2001 RESOLUTION WITH RESPECT TO AN APPLICATION FOR A CALENDAR YEAR 2002 RESERVATION FOR QUALIFIED MORTGAGE BOND AUTHORITY WHEREAS, the Corpus Christi Housing Finance Corporation (the "Corporation") has been duly created and organized pursuant to the provisions of the Texas Housing Finance Corporations Act (the "Act") for the purpose of assisting and financing the cost of residential ownership and development that will provide decent, safe and sanitary housing for persons of low or moderate income at prices they can afford; and WHEREAS, the Corporation seeks to apply for a Reservation for mortgage bond authority from the Texas Bond Review Board for calendar year 2002; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CORPUS CHRISTI HOUSING FINANCE CORPORATION THAT: The Corporation hereby authorizes the President to file an Application for Reservation for Qualified Mortgage Bond Authority for calendar year 2002 with the Texas Bond Review Board and the General Manager shall be authorized to take such other actions as may be reasonable or necessary to complete the documentation required for such application and commence the Program. PASSED and APPROVED the 29th day of January, 2002. CORPUS CHRISTI HOUSING FINANCE CORPORATION By:. John Longoria, President ATTEST: By: Armando Chapa, Secretary C:\WlNDOWS\TEMP\Resolution-Application.doc RESOLUTION WITH RESPECT TO AN APPLICATION FOR A CALENDAR YEAR 2003 RESERVATION FOR QUALIFIED MORTGAGE BOND AUTHORITY WHEREAS, the Corpus Christi Housing Finance Corporation (the "Corporation") has been duly created and organized pursuant to the provisions of the Texas Housing Finance Corporations Act (the "Act") for the purpose of assisting and fmancing the cost of residential ownership and development that will provide decent, safe and sanitary housing for persons of low or moderate income at prices they can afford; and WHEREAS, the Corporation seeks to apply for a Reservation for mortgage bond authority from the Texas Bond Review Board for calendar year 2003; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CORPUS CHRISTI HOUSING FINANCE CORPORATION THAT: The Corporation hereby authorizes the President to file an Application for Reservation for Qualified Mortgage Bond Authority for calendar year 2003 with the Texas Bond Review Board and the General Manager shall be authorized to take such other actions as may he reasonable or necessary to complete the documentation required for such application and commence the Program. PASSED and APPROVED the 29th day of January, 2002. CORPUS CHRISTI HOUSING FINANCE CORPORATION By: John Longoria, President ATTEST: By: Armando Chapa, Secretary C:\WIN DOW S~TEMP\Rcsolution-Application.doc Notes and Comments