HomeMy WebLinkAboutAgenda Packet City Council - 06/22/2004CITY COUNCIL AGENDA
JUNE 22, 2O04
Corpus Ch risti
Ail-America City
11:45 A.M. - "At Your Service Award", City Staff Recognition
AGENDA
CITY OF CORPUS CHRISTI, TEXAS
REGULAR COUNCIL MEETING
CITY HALL - COUNCIL CHAMBERS
1201 LEOPARD
JUNE 22, 2004
10:00 A.M.
PUBLIC NOTICE - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE
PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL.
Members of the audience will be provided an opporlunity to address the Council at approximately 12:00 p.m. or at the end
of the Councit Meeting, whichever is eadier. Please speak into the microphone located at ~he podium and state your name
and address. Your presentation wiit be limited to three minutes. If you have a petition or other information pertalning to your
subject, please present it to the City Secretary.
Si Usted desea dirigirse al Concilio y cree qua su ingl~s es limitado, habr~ un int~rprete ingl~s-espa~ol en tedas las juntas
del Concilio para ayudade.
Persons with disabilNes who plan to attend this meeting and who may need auxiliary aids or services are requested to
contact the C#y 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.
Invocation to be given by Reverend Gloria Lear, Senior Associate Pastor, First United
Methodist Church.
C. Pledge of Allegiance to the Flag of 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 Rex Kinnison
Council Members:
Brent Chesney
Melody Cooper
Javier D. Colmenero
Henry Garrett
Bill Kelly
Jesse Noyola
Mark Scott
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa __
E. MINUTES:
1. Approval of Regular Meeting of June 15, 2004. (Attachment #1)
Agenda
Regular Council Meeting
June 22,2004
Page 2
F. BOARDS & COMMI'I-FEE APPOINTMENTS: (Attachment #2)
Human Relations Commission
Oil and Gas Advisory Committee
G. EXPLANATION OF COUNCIL ACTION:
For administrative convenience, certain of the agenda items are listed
as motions, resolutions, or ordinances. If deemed appropriate, 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
rather than 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 material 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
requiting 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 setting a Public Hearing on the Proposed FY 2004-2005
Operating Budget dudng the Regular Council Meeting of June 29,
2004. (Attachment #3)
Resolution authorizing the City Manager or the City Manager's
designee to accept a grant from the Texas Department of Health
Services in the amount of $38,061 for Family Health and Family
Planning Services. (Attachment #4)
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of Ule
agenda summary)
Agenda
Regular Council Meeting
June 22,2004
Page 3
Ordinance appropriating a grant in the amount of $38,061 in the
No. 1066 Health Grant Fund from the Texas Department of
Health Services for Family Health and Family Planning Services.
(Attachment ON)
Resolution authorizing the City Manager or the City Manager's
designee to accept an amendment to the current immunization
grant from the Texas Department of Health in the amount of
$34,121 for personnel, fdnge benefits, travel, and supplies [or an
immunization program. (Attachment #5)
Ordinance appropriating the amended grant from the Texas
Department of Health in the amount of $34,121 for personnel,
fringe benefits, travel, and supplies to maintain an immunization
program in the No. 1066 Health Grants Fund. (Attachment #5)
Motion authorizing the City Manager or his designee to execute
a construction contract with R. M. Wdght Construction, of
El Paso, Texas in the amount of $2,007,600 for the Oso Water
Reclamation Plant Clarifier 2, 3, 4 Structural Improvements for
Total Base Bid C. (Attachment #6)
Ordinance appropriating $500,000 into the Street Capital
Improvement Program Fund No. 3530 from the Regional
Transportation Authority (RTA) for the RTA 2004 Special Projects
Program; amending FY 2003-2004 Capital Budget adopted by
Ordinance 025647 to increase Fund No. 3530 appropriations by
$500,000. (Attachment #7)
Resolution authorizing the resale of one foreclosed property
located at 3942 Madin which was foreclosed upon for failure to
pay ad valorem taxes for $7,000. (Attachment #8)
Ordinance abandoning and vacating a 3,155-square foot portion
of a 20-foot wide utility easement out of Block B-2B, Cullen Place;
requiring the owner, Dr. Ronald Kuffel, Jr., to comply with the
specified conditions and replat the property within 180 days at
owner's expense. (Attachment #9)
CITY COUNCIL
PRIORITY ISSUES
(Refer b3 legend at ~e end of the
agenda summary)
I. PUBLIC HEARINGS: (NONE)
Agenda
Regular Council Meeting
June 22,2004
Page 4
PRESENTATIONS:
Public comment will not be solicited on Presentation items.
10.
Padre Island Desalination Plant Feasibility Analysis and Siting
Plan - Stage 1 Findings and Recommendations. (Attachment
#10)
11.
Third Quarter Presentation of Health Benefits/Risk Management
Fund. (Attachment #11)
12.
Review of Preliminary Recommended Bond 2004 Program.
(Attachment #12)
K. SPECIAL BUDGET PRESENTATION:
13.
Overview of Proposed FY 2004-2005 Special Revenue, Internal
Service and Debt Service Funds Budgets. (Attachment #13)
REGULAR AGENDA
CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES:
14.
Resolution approving the FY 2004-2005 budget of the Corpus
Chdsti Cdme Control and Prevention District. (Attachment #14)
15.
Motion authorizing the City Manager or the City Manager's
designee to execute an agreement with Service America
Corporation, doing business as Centerplate, of Spartanburg,
South Carolina to operate and manage the food and beverage
services at the new Multi-Purpose Arena, Convention Center and
Selena Auditorium. (Attachment #15)
(RECESS REGULAR COUNCIL MEETING)
M=
ANNUAL MEETING OF CITY CORPORATIONS: (Attachment
#16)
16.a. CORPUS CHRISTI HOUSING FINANCE CORPORATION
MEETING:
Cl'rY COUNCIL
PRIORITY ISSUES
(Refer [o legend at U~e end of t~e
agenda summaPj)
Agenda
Regular Council Meeting
June 22,2004
Page 5
AGENDA
CORPUS CHRISTI HOUSING FINANCE CORPORATION
ANNUAL MEETING
Date:
Tuesday, June 22,2004
Time:
Dudng the meeting of the City Council beginning at
10:00 a.m.
Location:
City Council Chambers
City of Corpus Chdsti
1201 Leopard Street
Corpus Chdsfl, Texas 78401
1. President Mark Scott calls meeting to order.
2, Secretary Armando Chapa calls roll.
Board of Directors
Mark Scott, Presiden[
Bill Kelly, Vice President
Brent Chesney
Javier Colmenero
Melody Cooper
Henry Garrett
Rex A. Kinnison
Samuel L. Neal, Jr.
Jesse Noyola
Officers
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secretary
Vacant, Treasurer
Constance Sanchez, Asst. Treasurer
Election of Officers: President, Vice President, Secretary,
Assistant Secretary, Treasurer, Assistant Treasurer, and
General Manager.
4. Approve Minutes of May 13, 2003.
5. Financial Report.
6. General Manager's Annual Report.
7. Public Comment.
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at We end of I~e
agenda summary)
8. Adjournment.
Agenda
Regular Council Meeting
June 22,2004
Page 6
16.b. CORPUS CHRISTI
CORPORATION:
COMMUNITY IMPROVEMENT
AGENDA
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
ANNUAL MEETING
Date:
Tuesday, June 22,2004
Time:
During the meeting of the City Council beginning at
10:00 a.m.
Location:
City Council Chambers
City of Corpus Chdsti
1201 Leopard Street
Corpus Christi, Texas 78401
1. President Rex Kinnison calls meeting to order.
2. Secretary Armando Chapa calls roll.
Board of Directors
Rex A. Kinnison, Pres.
Javier Colmenero, Vice Pres.
Brent Chesney
Melody Cooper
Henry Garrett
Bill Kelly
Mark Scott
Jesse Noyola
Samuel L. Neal Jr.
Officers
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secretary
Cindy O'Brien, Treasurer
Constance Sanchez, Asst. Treasurer
Election of Officers: President, Vice President, Secretary,
Assistant Secretary, Treasurer, Assistant Treasurer, and
General Manager.
4. Approve Minutes of February 10, 2004.
5. Financial Report.
6. General Manager's Annual Report.
CITY COUNCIL
PRIORITY ISSUES
(Re~'~ ~ legend at ff~e end o[ Ihe
agenda summary)
7. Public Comment.
Agenda
Regular Council Meeting
June 22,2004
Page 7
8. Adjoumment.
16.c. CORPUS CHRISTI
CORPORATION:
INDUSTRIAL
DEVELOPMENT
AGENDA
CORPUS CHRISTI INDUSTRIAL DEVELOPMENT CORPORATION
ANNUAL MEETING
Date:
Tuesday, June 22,2004
Time:
Dudng the meeting of the City Council beginning at
10:00 a.m.
Location:
City Council Chambers
City of Corpus Christi
1201 Leopard Street
Corpus Christi, Texas 78401
1. President Henry Garrett calls meeting to order.
2. Secretary Armando Chapa calls roll.
Board of Directors
Henry Gaffe[t, President
Jesse Noyola, Vice President
Brent Chesney
Javier Colmenero
Melody Cooper
Bill Kelly
Rex A. Kinnison
Mark Scott
Samuel L. Neal Jr.
Officers
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secretary
Cindy O'Brien, Treasurer
Constance Sanchez, Asst. Treasurer
Election of Officers: President, Vice President, Secretary,
Assistant Secretary, Treasurer, Assistant Treasurer, and
General Manager.
4. Approve Minutes of December 9, 2003.
5. Financial Report.
CITY COUNCIL
PRIORI'FY ISSUES
(Rei'er [o legend at tt~e end of
agenda sumrna~/)
6. General Manager's Annual Report.
Agenda
Regular Council Meeting
June 22,2004
Page 8
7. Public Comment.
8. Adjournment.
(RECONVENE REGULAR COUNCIL MEETING)
PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS
NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT
APPROXIMATELY 12:00 P.M. OR AT THE END OF THE
COUNCIL MEETING, WHICHEVER IS EARLIER. PLEASE
LIMIT PRESENTATIONS TO THREE MINUTES. IF YOU PLAN
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, please present it to the City Secretary.)
Si usted se didge a la junta y cree que su ingl~s es limitado,
habr~ un int~rprete ingl~s-espar3ol en la reunid)n de la junta para
ayudarle.
PER CITY COUNCIL 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. THIS POLICY IS NOT MEANT TO
RESTRAIN A CITIZEN'S FIRST AMENDMENT RIGHTS.
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
into executive session regarding an agenda item, the section or
sections of the Open Meetings Act authod7Jng the executive session
will be publicly announced by the presiding off/ce.
CITY COUNCIL
PRIORITY ISSUES
(Re[er Io legend ~t U3e end or
agenda summa~)
Agenda
Regular Council Meeting
June 22,2004
Page 9
17.
18.
19.
P=
Executive session under Texas Government Code Section
551.071 regarding Gerardo Hemandez and Ana Hernandez,
Individually and as Representative of the Estate of Saria
Hemandez, Deceased vs. City of Corpus Chdsti, City of Corpus
Chdsti Police Department and Corpus Christi Police Officer
Sergio Delgado; Cause No. 03-60985-1, in the County Court at
Law No. 1, Nueces County, Texas, with possible discussion and
action related thereto in open session.
Executive session under Texas Government Code Section
551.071 regarding the use of public rights-of-way and property by
pipelines, grants of rights therein, fees therefore, existing
revocable easements for pipelines, and related matters, with
possible discussion and action related thereto in open session.
Executive session under Texas Govemment Code Section
551.071 regarding the Nueces County - City of Corpus Christi Jail
Use Agreement and the City's proposed Detention and
Magistration Center, 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 brfef discussions regarding city-related matters.
20. CITY MANAGER'S REPORT
* Upcoming Items
21. MAYOR'S UPDATE
CITY COUNCIL
PRIORITY ISSUES
(Refer to ~ege~d at th~ end o[
agenda summary)
22. COUNCIL AND OTHER REPORTS
Agenda
Regular Council Meeting
June 22,2004
Page 10
Q. ADJOURNMENT:
POSTING STATEMENT:
This agenda was posted on the Ciys official bulletin board at the front entrance
to City Hall, 1201 Leopard Street, at 1:30 p.m., June 18 ,20_04.
City Secretary ~
CITY COUNCIL
PRIORITY ISSUES
(Rear to legend at U~e e~l o~
agenda summary)
NOTE:
The City Council Agenda can be found on the City's Home
Page at www.cctexas.com 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.
1
MINUTES
CITY OF CORPUS CHR/STI, TEXAS
Regular Council Meeting
June 15, 2004- 10:07 a.m.
PRESENT
Mayor Samuel L. Neal Jr.
Mayor Pro Tern Rex Kinnison
Council Members:
Brent Chesney
Javier D. Colmenero (Arrived at 10:10 a.m.)
Melody Cooper
Henry Garrett
Bill Kelly
Jesse Noyola
Mark Scott
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Mayor Neal called the meeting to order in the Council Chambers of City Hall. The
invocation was delivered by Pastor Gene Stexvart of Reach Out for Christ Ministries and the Pledge
of Allegiance to the United States flag was led by Council Member Cooper. 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 regular
Council meeting of June 8, 2004. A motion was made and passed to approve the minutes as
presented.
Mayor Neal recognized Dr. Carlos Garcia, the newly appointed President of Del Mar
College_ Dr. Garcia briefly described Del Mar College's goal to promote education in the
community. He then recognized Mr. Gabriel Kivas, chairman of the Del Mar College Board of
Regents, and Ms. Pat Townshend, director of the Del Mar Foundation. Ms. Townshend briefed the
Council on the foundation's fundraising campaigns. Ms. Townshend also introduced Ms. Melissa
Rollins, a former student who shared her experience at Del Mar College. Mayor Neal thanked Dr.
Garcia and said the city looked forward to working with him.
Mayor Neal referred to Item 3 and the following board appointments were made:
Sister City Committee
Westi Horn (Appointed)
Rebecca Hawn (Appointed)
Flicka Rahn (Appointed)
Mary Ann Lopez (Appointed)
Minutes - Regular Council Meeting
June 15, 2004 - Page 2
Mayor Neal referred to the presentations on the day's agenda. The first presentation was the
final report of the Charter Revision Commission. Ms. Irma Caballero, co-chairman of the
commission, recognized the commissioners present in the audience, and thanked them for their hard
work. She said the commission had many constructive debates about the propositions before
finalizing their list of recommended city charter amendments. She said the commission's main goal
was to provide city government with the tools needed for effective governance to enhance the
quality of life in Corpus Christi. She and Mr. John Bell, co-chairman of the commission, briefly
reviewed the list of ten recommended city charter amendments as follows:
Proposition 1:
Proposition 2:
Proposition 3:
Proposition 4:
Proposition 5:
Proposition 6:
Proposition 7:
Proposition 8:
Proposition 9:
Proposition 10:
Updating the provisions concerning initiative and referendum in order to comply
with new laws and election procedures.
Updating the provisions concerning city council elections, council meetings, and
the mayor's veto power and recall elections in order to conform the procedures to
new State laws and city council meeting dates.
Increasing the compensation of city council members to $12,000 per year and of
the mayor to $18,000 per year, to be effective after the next city council elections
Updating the provisions concerning the approval of budgets and the expenditure
of city funds in order to comply with new laws, court decisions, and accounting
practices.
Allowing city employees, other than managerial employees and employees in the
city secretary's office, to participate in political activities; provided that, no
political activities may be conducted while in uniform, on duty, or using city
resources, and no coercion or retaliation is allowed.
Simplifying the existing restrictions concerning city officials and employees
running for other public office in order to make the current provisions easier to
follow, without making any substantive changes in the restrictions.
Changing the property tax cap to conform to the tax cap set by the Texas
Constitution.
Allowing certain leases for the construction of boat slips and docking facilities to
be for terms not more than 15 years without necessity of an election, simplifying
the procedures concerning the short-term leases less than 5 years, transfers of
leases, regulation of leases and approval ofoil and gas leases, and updating other
provisions to current State law and court decisions.
Updating the provisions concerning general powers of the city in order to conform
to new State laws and procedures.
Changing the date of the regular city council election from the first Saturday in
April to the November uniform election date in order to conduct city council
elections at the same time as elections for federal and state elected officials.
Mr_ Bell stated that Propositions 4, 6, and 9 were housekeeping items which were fairly non-
controversial in nature.
Regarding Proposition 1, Mr. Bell stated that the proposed changes to the initiative and
referendum provisions were designed to provide more direct communications between the
petitioners and city officials, allow set timelines for the submission of documents, and the
supplementation of petitions that are determined to be insufficient. He said by making the
procedures more clear and detailed, the Commission hoped to keep any future controversy to a
Minutes - Regular Council Meeting
June 15, 2004 - Page 3
minimum.
Regarding Proposition 2, Mr. Bell said the most significant change was to the timing of the
city council ran-off elections. Historically, the city's mn-off elections have been held two weeks
after the general election. He said this would no longer be possible, however, because of changes
in the Texas election code, which now required that a city could not canvass an election until a
minimum of eight days after the regular election. Thus, he said the earliest the city could hold a run-
off election was four to five weeks after the regular election.
Regarding Proposition 3, Ms. Caballero explained that the commission believed that the
mayor and council members should receive a basic level of compensation that would allow a broader
range of Corpus Christi citizens to serve. By keeping the salaries artificially low, only those persons
who are wealthy or have independent means of support would be able to serve.
Regarding Proposition 5, Mr. Bell said this proposition was heavily debated by the
commission, and it ultimately received a split vote. He said a majority of the commission felt it was
important to allow city employees to participate in city elections, with the exception of managerial
employees and employees of the city secretary's office, because this department oversaw city
elections.
Ms. Caballero discussed Proposition 7 regarding the property tax cap. She said the Texas
Constitution established a property tax cap of $2.50 per $100.00 of assessed valuation for all Texas
cities comparable to Corpus Christi. Although Corpus Christi and other Texas cities do not levy
property taxes anywhere near that legal maximum, she said the legal limit was a significant factor
to bond rating agencies in determining the creditworthiness of cities in the issuance of bonds and
in maintaining operations and maintenance to support essential city services. She said the city
incurred additional expenses each year based upon higher interest costs on issued bonds because of
the 68-cent property tax cap. Thus, she said the commission believed the 68-cent property tax cap
should be repealed.
Mr. Bell discussed Proposition 8 regarding long-term leases along the Corpus Christi
bayfi'ont, a somewhat controversial issue He said the charter requires that leases of submerged
lands on the bayfi'ont for terms longer than five years must be approved by a voter referendum.
However, he said the replacement of boat slips and docking facilities are routine capital
improvements on the bayfront, but in order to amortize the costs of better facilities, more than five
years is required. Thus, he said the amendment will maintain the requirement that leases longer than
five years of the submerged lands along the bayfront must be approved by voter referendum, but it
provides an exception allowing leases of boat slips and docking facilities for up to 15 years.
Finally, Ms. Caballero briefly discussed Proposition 10, which would change the date of the
regular city council election fi.om the first Saturday in April to the November uniform election date.
She said the main reason for supporting this change was higher voter turnout. The main reasons
against the change were the loss of attention paid to city candidates and the higher costs of
conducting campaigns. Ms. Caballero said this proposition was the most intensely debated of all
the propositions the commission discussed. After the public meeting held on June 8, 2004, the
proposition was included in their final report by an 8-7 vote.
Minutes - Regular Council Meeting
June 15, 2004 - Page 4
Mr. Bell stated that the commission began meeting in October 2003 and undertook a
comprehensive review of the City Charter beginning with Article I. He thanked the commission for
their efforts, and he thanked the Council for the opportunity to serve. Mayor Neal thanked Ms.
Caballero and Mr. Bell, and the rest of the commission for their efforts.
Mayor Neal asked City Secretary Chapa to explain the next steps in the process_ City
Secretary Chapa answered that the Council would need to decide what issues they wanted to place
on the November ballot by the end of July, or no later than the first meeting in August. He also
recommended that the Council hold another public meeting on the recommended charter
amendments, perhaps during the first meeting in July. The Council concurred with Mr. Chapa's
suggestion to hold the public hearing during the first meeting in July Mayor Neal asked that the
item be placed on the regular agenda. Mr. Noyola asked if the item would be considered at a
specific time. Mayor Neal replied that they ~vould look into it.
The next presentation was on a proposed west side clinic by the Nueces County Hospital
District_ County Commissioner Betty Jean Longoria reported on the proposed Westside
Neighborhood Care Center, scheduled for completion by April 2005. She said the clinic would
replace a smaller temporary clinic that was now inadequate. She said she had worked closely ~vith
District 3 Council Member Noyola and City Manager Skip Noe, and she thanked them for their
support. She thanked Assistant City Manager Margie Rose and other city staff for their assistance
in acquiring the city property to be used as the project site, pending related zoning and platting
approvals. Commissioner Longoria also reported that the clinic would provide dental care and
would dispense medication, two badly needed services.
Commissioner Longoria noted that the Nueces County Hospital District was investing $2.9
million to develop the project. She introduced Mr. Johnny Hipp, administrator and CEO of the
Nueces County Hospital District, who reported that the Westside clinic would be the fifth clinic in
the district's system. He said the proposed clinic would be located in the center of a medically
under-served area. He said the district's duties were to care for the indigent in the county, as well
as provide public health services, EMS, mental health and retardation services, and correctional
health services.
Mr. Hipp introduced a architect from Bennett, Martin, Solka and Torno, Inc. Architects, who
reported on the plans for the clinic. She said the building was oriented toward the intersection of
Greenwood and West Point Road, with access to the facilities from either street. She said the design
team has coordinated with the RTA to move the bus stop closer to the building. She then briefly
reviewed the floor plan for the building.
In response to Mr. Hipp's question, Mr. Hipp replied that the clinic would actually be
operated by the Chrisms Spohn System. He said the clinic would serve indigent as well as paying
customers. Mr_ Colmenero spoke in support of the project, saying that it was badly needed.
Mr. Noyola asked if there were any plans to repair Greenwood Drive and West Point Road,
which were in poor condition. City Manager Noe replied that he was not aware of any plans to
repair the roads beyond what was in the proposed bond issue. Mr. Noyola thanked Mr. Hipp and
Commissioner Longoria for keeping him informed on the project. He said there was a great need
for the clin/c in the west side area.
Minutes - Regular Council Meeting
June 15, 2004 - Page 5
Mr. Scott asked Mr. Hipp to explain the hospital district's relationship with the Chrisms
Spohn System. Mr_ Hipp replied that the district provided indigent care under one of three operating
contracts they had with Chrisms Spohn. He said the district was amending the lease to add the new
site_ He noted that the district had spent approximately $23 million for indigent care last year_
Under the lease agreement, Chrisms Spohn paid the hospital district $5.1 million a year to lease the
Memorial facility and the clinics from them. He emphasized that Chrisms Spohn only leased the
facility from the hospital district, but did not manage or operate the clinics on their behalf. He stated
that the climcs were Chrisms Spohn's enterprise.
Council Member Cooper asked about the timeline for the project. Mr. Hipp replied that the
hospital district was in the process of acquiring approximately 2_7 acres of land at the intersection
of Greenwood and West Point Road. He said the sales contract stipulates that the hospital district
cannot purchase the property until it is rezoned and platted. He said the Planning Commission
would consider their request on June 2. He said the design plans would go to the district's board in
July for approval to issue bids. The bids would be received in September, and the project would
hopefully begin construction soon after. He said the architect estimated that construction would take
approximately eight to nine months. Ms. Cooper spoke in support of the project, also stating that
there were many citizens desperately in need o~'the clinic's services.
Mayor Neal referred to Item 6, a special budget presentation providing an overview of the
proposed FY2004-05 budget for enterprise zones Assistant City Manager Mark McDaniel
displayed a pie chart illustrating the expenditures by each fund_ He noted that utilities comprised
the largest share of expenditures by far. Of the utilities, he said water was the largest fund,
comprising 47 percent of the total. He said the seven enterprises funds combined totaled $164 4
million, larger than the general fund.
Mr. McDaniel first discussed the combined utility system, composed of water, gas,
wastewater, storm water, and environmental services departments. Regarding revenues, he pointed
out that a substantial portion of revenues were coming from the sale of water and wastewater. He
also discussed the proposed rate adjustment of 5 percent, programmed next year for all three utilities,
to support the capital program the Council approved earlier primarily for drainage.
Mr. McDaniel remarked that the city's water sales over the last few years have been poor
because of unusually wet weather. He reiterated that water comprises the largest portion of the
combined utility system budget and is the largest enterprise fund, so this has had a significant effect
on the budget. Staffestimated that water sales for 2004 will rebound slightly because the rainfall
this year was not as heavy as last year.
Mr_ McDaniel then discussed expenditures for the combined utility system. He said the pie
chart for expenditures was different from other operating budgets because materials and supplies
(28 percent) and debt service (23 percent) were the largest portions of the budget. He said the
materials and supplies category was composed of purchased water and purchased gas that were then
resold to customers. By contrast, he said personnel comprised only 18 percent of expenditures. Mr_
McDaniel pointed out that there was actually a reduction in salaries and wages for the combined
utility system expenditures of $162,746. He said this was a one percent reduction net of $2 million
Minutes - Regular Council Meeting
June 15, 2004 - Page 6
in programmed salary savings, but included increases as follows: salary adjustments/skill based pay;
and health insurance and TMRS adjustments_ He also said that $1 million was programmed in the
budget to continue the re-engineering effort. Finally, with regard to capital improvement financing,
he said the fund was down by $73,841 in its budget, but th~s amount was exclusive of pending new
debt to be issued in July.
Mr_ McDaniel discussed two other major expenditures, purchased water and purchased gas.
He said expenditures for purchased water had increased by 6.8 percent, or $427,140, attributable to
increased interruptible water purchases in 2003 and 2004. With regard to purchased gas, he said
staffwas budgeting for only a 1.5 percent increase because gas prices have been high the past two
years. Mr. Scott asked if staff had considered a long-term contract for gas purchases. Acting
Budget Director Debbie Marroquin replied that staff had considered this, but they opted not to do
it this year because the volatility of the market made it a risky endeavor. She said staffcould always
consider making long-term purchases, however, if needed. City Manager Noe added an important
consideration was to see how the future development of liquified natural gas receiving terminals
(LNG) in the city might impact the local market, more than likely in a beneficial way.
Mr. McDaniel then discussed the marina fund. He said revenues for the marina fund were
primarily comprised of slip rentals (75 percent). Expenditures were mostly comprised of salaries
and wages (56 percent) and other operating costs (30 percent). He also discussed an important
fiscal issue currently being considered, namely a contemplated rate adjustment to fund marina
improvements. He said the rate adjustments could be comprised of slip rental increases as high as
21 percent, which would still be competitive with the industry. The possible improvements would
be to piers and pilings, bathroom facilities, and an additional 250 boat slips. Mr. McDaniel stated
that the plans for possible improvements were pending the completion of the bayfront plan. City
Manager Noe added that it was important that the marina improvements coordinate with the bayfront
plan since this has been a criticism in the past.
Mr. McDaniel next covered the golf centers fund. With regard to revenues, he said green
fees make up the largest portion of the budget (54 percent), followed by cart rentals (28 percent).
He said golf center expenditures were comprised primarily of operation costs for the Gabe Lozano
course (50 percent) and for the Oso course (38 percent). He reported that staffs revenue projections
included the return ora monthly card program that would allow discounted play for residents during
a specific time period for $130.
In addition, Mr. McDaniel stated that the golf fund was facing a critical fiscal issue due to
a significant decline in activity and subsequent revenues. He said the decline has led to major cost
reductions and could potentially lead to contracting out of operations. Mr. Garrett asked why staff
thought play had declined so dramatically. Mr. Chris Semtner, support services superintendent for
the park and recreation department, replied that play had declined mainly because private country
clubs are now open to the public and offering competitive prices.
Mr. Colmenero asked about any marketing plans for municipal golf courses_ Acting Director
of Park and Recreation Margie Rose replied that staffwas formulating a marketing plan that focused
primarily on the tourist market. She said staff would be working with the Convention and Visitors
Bureau to provide information to hotels. She also said the plan would look at publicizing golf
outings by non-profits at city golf courses. Mr. Colmenero suggested that stafflook into purchasing
Minutes - Regular Council Meeting
June 15, 2004 - Page 7
PSA time through the utility accounts. He also asked if there was a system in place to acquire data
on golf course patrons, which could be used to more effectively focus the city's marketing efforts_
Ms. Rose replied affirmatively, saying that this was part of the marketing plan.
Mr. Noyola spoke in support of the return of the monthly card program because it would
make the city's prices more competitive. He also stated that the new improvements to the courses
should help increase activity, in combination with the monthly card program.
Mr. McDaniel covered the airport fund budget, beginning with revenues. He said the airport
fund obtains its revenues fi.om a variety of sources, the largest sources being parking lot collections
(20 percent) and oil and gas leases (13 percent). With regard to expenditures, he said building and
custodial maintenance was the largest expenditure at 28 percent. In addition, he reported that airport
activity was rebounding from a downward trend in enplanements since hitting a low in calendar year
2003.
Mr. Garrett asked when the city was going to demolish the old airport tower. Director of
Aviation Dave Hamrick answered that a portion of the tower was being leased to the Transportation
Security Administration. He said the demolition process would be completed in two phases. The
first phase was the asbestos removal, and staff had already received estimates on this project. He
said the demolition should be completed by the end of the year.
Finally, Mr. McDaniel discussed the ambulance fund, beginning with revenues. He said
emergency call revenues composed 50 percent o fall revenues, including the proposed rate increases
totaling approximately $237,000. He noted that the general fund was still subsidizing the fund by
49 percent. The remaining one percent was flat revenue generated from calls outside the city limits.
Regarding expenditures, he stated that the costs for the eighth ambulance company were
compounding, along with salary related adjustments (for wages, health insurance and uniform
allowance), and costs for the new ambulance replacement program.
In conclusion, Mr. McDaniel reviewed the balance of the budget schedule. On June 22, staff
would provided an overview of special revenue and internal service funds. On June 29, the public
hearing on the budget was scheduled. Finally, the first and second readings of the adoption
ordinance would be held on July 13 and July 20.
Mayor Neal called for consideration of the consent agenda (Items 7-8). There were no
comments fi.om the audience or the Council. A motion was made and passed to approve Items 7
through 8, constituting the consent agenda. City Secretary Chapa polled the Council for their votes
as follows:
Minutes - Regular Council Meeting
June 15, 2004 - Page 8
ORDINANCE NO. 025790
Ordinance appropriating $383,952 from the State Homeland Security Grant in Fire Grants
Fund No. 1062 for purchase of 114 handheld radios.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and
Scott, voting "Aye".
8.a. RESOLUTION NO. 025791
Resolution authorizing the City Manager or the City Manager's designee to execute a Gift
Agreement with the Friends of the Corpus Christi Public Libraries which provides the City
with a gift of $115,558.54 for the expansion and remodeling of the Mary and Jeff Bell
Children's Library at the Central Library.
The foregoing resolution was passed and approved with the following vote: Neal, Chesney,
Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and Scott, voting "Aye".
8.b. ORDINANCE NO. 025792
Ordinance appropriating $115,558.54 from the Friends of the Corpus Christi Public Libraries
Capital Improvement Program Fund No. 3210 for improvements to the Mary and Jeff Bell
Children's Library at the Central Library; amending FY 2004 Capital Budget adopted by
Ordinance No 025647 by increasing appropriations by $115,558.54.
An emergency was declared, and the foregoing ordinance was passed and approved with the
following vote: Neal, Chesney, Colmenero, Cooper, Garrett, Kelly, Kinnison, Noyola and
Scott, voting "Aye".
Mayor Neal deviated from the agenda, and opened discussion on Item 10 regarding the
vacant building ordinance. City Manager Noe stated that the item was placed on the agenda because
the Council had previously tabled it for consideration at today's meeting. He said staff has met with
representatives from the realtors association and other stakeholders, and although some progress has
been made, the ordinance was still not ready for the Council's review. Thus, staff was
recommending that the item be tabled until no later than July 27. Mr_ Scott made a motion in
support of staff's recommendation, seconded by Mr. Chesney, and passed_ There were no comments
from the audience.
Mayor Neal called for a brief recess to present proclamations.
The Council returned from recess, and Mayor Neal called for petitions from the audience.
Mr. Roy Pell, 5022 Rasputin Court, representing the Water Shore Advisory Committee, spoke in
Minutes - Regular Council Meeting
June 15, 2004 - Page 9
favor of the proposed boat slip fee adjustments. Mr. Jack Gordy, 4118 Bray, spoke regarding a
number of code enforcement issues, including illegal parking and political signage, and an incident
involving police officers allegedly entering his home without properly identifying themselves. Mr.
Danny Noyola, 4410 Acushnet, thanked Mr. Colmenero for appointing him to the Charter Review
Commission, and he suggested that the public hearing for the recommended charter revisions take
place in the evening to allow for more public input. He also congratulated the Moody Trojans for
winmng the 5A state baseball championship. Mr. Roland Garza, 2854 Alvin Drive, spoke regarding
his concems about an overpayment for uniforms in the water department. Ms. Norma Urban,
president of the Downtown Management District (DMD), read a resolution on behalf of the DMD
Board of Directors supporting the concept of an enhanced public transit system (e_g. trolley) within
downtown Corpus Christi.
Mayor Neal referred to Item 9, and he announced an executive session pursuant to Section
5501.07 of the Texas Government Code, to seek legal advice relating to the receipt ora petition to
call an election to determine whether to establish an ad valorem property tax freeze on residence
homesteads of the disabled and of the elderly and their spouses, with possible discussion and action
in open session.
The Council went into executive session. The Council returned from executive session, and
Mayor Neal made a motion to direct the City Secretary to begin validating signatures on the petition
filed on June 8, 2004 regarding the freezing of ad valorem taxes on residence homesteads of the
disabled and the elderly and their spouses, seconded by Mr. Scott. Mayor Neal called for public
comment. Mr. Jack Gordy, 4118 Bray, and Mr. Bill Kopecky, 3609 Topeka, spoke in favor of
establishing the ad valorem property tax fi-eeze. Mayor Neal called for a vote on the preceding
motion, and it passed unanimously (Chesney was absent).
Mayor Neal called for the City Manager's report. City Manager Noe reported that staff had
received the final report on the results of Neighborhood Improvement Program (NIP) Area No. 4,
which was successful. He said the NIP Site No. 5 effort would take place fi.om June 23 through July
19 in the Flour Bluff`area. He also announced that the open enrollment period for health insurance
for city employees and retirees was now in progress. In addition, he stated that the city would be
receiving a visit fi.om Transportation Commissioner Ted Houghton on June 28, and Council
Members were invited to visit with him fi.om 10 a.m. to 12 p.m. at an orientation to be held at the
Ortiz Center.
City Manager Noe announced that the following items were scheduled for next week's
council meeting: fourth budget discussion; Bond 2004 discussion; consideration and approval of the
Crime Control District 2005 budget; and the annual meetings of the city corporations.
Mayor Neal called for Council concerns and reports. Mayor Neal reported that he had
received a letter fi.om Mr. Van Huseman, representing Nueces County, with a substantially amended
proposed jail contract. He asked the city manager to place the item on next week's agenda for the
Council's discussion and consideration. He emphasized that the Council has not yet discussed or
Minutes - Regular Council Meeting
June 15, 2004 - Page 10
approved the revised jail proposal in any way.
Mr. Kelly spoke in support of the efforts of the See City Workcamp, a faith-based program
where high school students work with experienced contractors to make improvements to the homes
of needy people.
Mr. Garrett stated that he received a call from a constituent residing on the 600 block of
Ocean Drive regarding problems with excessive noise fi.om a concert held on Thursday night. He
asked the city manager to look into the problem.
Mr. Noyola asked for a status on a survey he had requested regarding the possible effects of
increasing the $3,000 down payment in the city's mortgage assistance program. He also asked about
a constituent request to use a service alley for trash collection in the Crestmont area. City Manager
Noe replied that it was not possible because the pavement in the alley was not in good condition,
and he said he had notified the gentleman in question. Finally, Mr. Noyola congratulated the Moody
Trojans for winning the 5a state baseball championship, and he invited everyone to attend their pep
rally at Cabaniss Field tonight.
Ms. Cooper asked for an update on the Packery Channel project funding. City Manager Noe
replied that Sen. Chet Edwards had initiated an appropriation for Packery Channel in the House, and
the next step was to try to obtain support in the Senate. He said Senator Hutchison was continuing
her efforts to obtain funding for the project.
Mr. Colmenero asked for a report on the city's efforts to address problems with transients and
prostitutes on Leopard Street. He also reported that he was still receiving complaints about the noise
from Truks Roadhouse on McArdle Road. Finally, he asked for a report on the graffiti problem.
City Manager Noe said staff was still working on it, and he would find out when it would be ready.
There being no further business to come before the Council, Mayor Neal adjourned the
Council meeting at 12:40 p.m. on June 15, 2004.
2
~ RELATIONS COMMISSION - Nine (9) vacancies with trtms to 6-14-05, 6-14-06
and 6-14-07 representing the following categories: 4 - Regular members, 1 - Selling Dwellings,
1 - Rental Dwellings and 3 - Youth. (Mayoral appointment subject to confirmation by the City
Council) The position of Chairman is designated by the Mayor and is due for considc~'ation to a
one-year term to 6-14-05.
COMPOSITION: Sixteen (16) members, fourteen (14) of whom shall be appointed by the
Mayor with approval of the Council to study problems of group relationships within the City;
one who shall represent the selling of dwellings, one who shall represent the renting of dwellings
and one member of the staff of the Legal Aid Society to serve continuously, and three (3) shall
not be more than 20 years of age at time of appointment serving one-year terms. Eleven (11)
members shall serve three-year terms. The Chairperson of the Committee for Persons with
Disabilities serving as an ex-officio voting member.
MEMBERS TERMS
Oscar Hinojosa, Sr., Chairperson 6-14-05
Sylvester Peterson, Vice-Chairperson 6-14-05
*Amy Rhoads Granberry 6-14-04
**Nancy Vera 6-14-06
Dr. Carol Ledbetter 6-14-06
* *VACANT 6-14-06
Ruth Silva 6-14-05
Dr. Clifton Baldwin 6-14-05
*Stuart Elovitz, M.D. 6-14-04
*Betty Black (Selling Dwellings) 6-14-04
**Theresa Holder (Rental Dwellings) 6-1 4-06
**Lisa Bonilla (Youth) 6-14-04
*Mansa K. DoMing (Youth) 6-14-04
*Albert Santoya (Youth) 6-14-04
Linda Falwell-Stover (Com. Per. Dis. Chair) Ex-officio (Voting)
Errol Summerlill (Legal Aide Society) Continuous
APPTD. DATES
5 - 11-99
12-08-98
7-10-01
7-10-01
9-23-03
2-12-02
2-12-02
11-11-03
9-19-00
7-10-01
11-11-03
9-23 -03
9-23 -03
9-23-03
*Seeking reappointment
**Resigned
ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT
NO. OF MTGS. NO.
NAME THIS IERM PRESENT
Amy Rhoads Granberry 8 8
Dr. Stuart Elov/tz 8 6 (2 exc.)
Betty Black (Selling Dwelhngs) 8 6 (2 exc.)
Mm-isa K. Dowling (Youth) 5 5
Allxxt Santoya (Youth) 5 4
% OF ATrENDANCE
LAST TERM YEAR
100%
75%
75%
100%
8O%
INDIVIDUALS EXPRESSING INTEREST
Robert Adler
President, Atlas Iron and Metal Inc. Activities
include: USS Lexington Board of Directors
Executive Committee, Boy Scouts of America,
Driscoll Clxildren's Hospital Co-Chair, Mustangs of
Corpus Christi, Charter Bank Board of Directors,
USO Board of Directors, West Corpus Christi
Rotary Club and Westside Business Association.
(6-09-O4)
Julianna (Annie) Backer
Senior, Tuloso Midway High School. Volunteers
for Special Olympics and a member of the Debate
Team. Received 1st place in the Rotary Club
Speech Competition. (Youth) (5-25-04)
Daniel Brubaker
Junior, Calallen High School. Activities include:
Fellowship of Christian Athletes, National Honor
Society, Powerlifting, and Reserve Grand
Champion for NCJLS. Ranked 2na in his class.
(Youth) (5-13-04)
Brandon Ray Callis
Junior, Tuloso-Midway High School Activities
include: Tuloso-Midway Future Farmer's of
America Charter President, National Honor Society
and Tuloso-Midway Choir Secretary. (Youth) (5-
14-04)
Krystal Crump
Junior, Flour BluffHigh School. Activities include:
Bayfest, Special Olympics, National Honor Society,
Math Team and BPA. (Youth) (5-08-04)
Nathaniel Cantu
Senior, W.B. Ray High School. Activities include:
National Junior Honor Society, Yrok Editor,
Student Council Treasurer, and Junior Class
Treasurer_ Received the Presidental Award.
(Youth) (9-1s.o$)
Ashley Dominguez
Junior, W.B_ Ray High School. Member of the
National Hispanic Institute, Varsity cheefleading,
National Honor Society, Spanish Honors Society
and Varsity softball. (Youth) (5-19-04)
Allison Escobar
Joseph '~Payton" Gardner
Sarah Hardy
Benjamin Lewis
Luis Alej andro Moreno
Leah Patterson
Lucy Reta
Chad Roberts
Senior, Richard King High School. Activities
include: Future Educators Club, National Spanish
Honor Society, National Honor Society and Varisty
Volleyball. (Youth) (5-05-04)
Jumor, W.B. Ray High School. Activities include:
Spanish Honor Society, Youth Leadership Team
and Academic Decathlon Team. Received awards
in Economics and Super Quiz. (Youth) (5-03-04)
Junior, Richard King High School. Activities
include: Driscoll Hospital volunteer, Shattered
Dreams, Academic Excellence, Top 100, Honor
Student, French Honor Society Officer, and Varsity
Swim Team. (Youth) (5-04-04)
Senior, W.B. Ray High School. Member of the
YMCA Youth In Government and a mentor.
(Youth) (5-19-04)
Junior, Calallen High School. Fluent in English and
Spanish and is studying Latin. Works in the
summer to help support his family. Excels in
speech, Latin, Geometry and Chemistry. (Youth)
(4-2s-o4)
Executive Director, Corpus Christi Apa,tment
Association. Activities include: representative to
the State Apartxnent Association, Women's Shelter,
Taking Back the Streets campaign, PTA, Planning
and Decision Making (PDM) Board, Family Self
Sufficiency at the Housing Authority,
Emmaus/Damascus Community, and team mom.
(6-10-04) (Rental Dwelling)
Administrative Assistant, Corpus Christi Chamber
of Commerce. Member of the West,side Business
Association and Leade~hlp Corpus Christi Alumni.
Past General Chairman of the Sister City
Committee. 0-31-04)
Junior, Flour Bluff High School. Member of the
National Honors Society, Business Professionals of
America, and Muscular Dystrophy Association
volunteer. (Youth) (5-11-04)
Billy Ray Sayles
Self-employed, Counselor. Received A.S. in
Mental Health, B.A. in Psychology and M.S. in
Educational Psychology. Member of the
Committee for Persons with Disabilities, Nuecns
County MHRM Board of Trustees, Texas Youth
Commission Volunteer Council and the RTA
Advisory Committee. (5-05-04)
Clark Smith
Broker, The Village Realty. Receive B.A. fxom
Baylor University. Attended Corpus Christi State
University and Del Mar for continuing education in
Computer Science and Real Estate. (Selling
Dwellings or Regular member) (2-02-04)
Cheri Sperling
President/Owner, Coastline Properties, Inc.
Attended Business College and received Real Estate
License. Active with the Corpus Christi Apartment
Association. (Selling Dwellings or Regular
member) (2-20-04)
Albert A. Studer
Junior, King High School. Member of the King
Band Fundraiser's Committee, Band Drill Instructor
(French Horn Section), Spanish Honor Society, and
Del Mar Tech Prep Mentor. Awards received
include: Texas A & M University - Corpus Christi
Fuse Scholarship Recipient, and Del Mar Tech
Prep I, II Scholarship Recipient. (Youth) (9-09-05)
Amanda Villarreal
Sophomore, Calallen High School. Member of the
National Forensic League, National High School
Scholar, Whose Who Among American High
School Students. Awards received: Student of the
month, FCA Athlete of the Year, UIL Regional
Academic Qualifier and Outstanding Leader at
Youth Leadership Convention. (Youth) (5-05-04)
Adriana Zepeda
Sen/or, Foy H. Moody High School. Activities
include: National Honor Society, Sociedad
Honoriaria Hispanica, Student Council, Class
Council and Varsity Cheerleader. Has participated
in the March of Dimes, HEWs Feast of Sharing,
Toys for Tots and the Special Olympics. (Youth)
(9-30-05)
OIL AND GAS ADVISORY COMMITTEE - One (1) vacancy with tcm~ to 12-31-05
representing the category of Oil Industry. (Mayoral appointment subject to confirmation by the
Cay Counclt )
DUTIES: The committee shall make a continuing study of operations for the exploration,
drilling, and production of oil, gas and minerals and the possible effects of same upon the
envh-onment, public health, safety and general welfare of the City.
COMPOSITION: Eight (8) persons who are residents of Corpus Christi: three (3) members
fi-om the oil and gas well industry; three (3) membem fi-om the general public who are not
connected with the oil and gas well industry; and two (2) alternates: one (1) from the general
public to serve in the absence of a public members, and one (1) fxom the industry to serve
whenever an industry member is absent. Public members shall be appointed by the Mayor with
approval of the Council; industry members shall be appointed by the Mayor with approval of the
Council fi-om those persons nominated by the oil and gas well industry. Members are appointed
for three-year terms ending December 31, and may succeed themselves. Meetings are called by
the Chairman or any three (3) members of the Committee within specified time limits. Four
members constitute a quorum. The committee annually elects its own chairman and vice
chairman. Members receive no compensation for their services.
MEMBERS
Charles Jacobs (Oil Industry)
Ron Ruiter (General Public)
Charles West (General Public)
Sharon Johnson (Oil Industry)
Michael Woodcock (General Public)
*Don Kersting (Oil Industry)
Robert DeLeon (Alt, General Public)
Juan N. Cabasos (Alt, Oil Industry)
ORIGINAL
TERM APPTD. DATE
12-31-06 12-16-03
12-31-04 2-19-02
12-31-05 1-07-97
12-31-04 4-14-98
12-31-06 1-09-01
12-31-05 1-07-97
12-31-04 4-30-02
12-31-04 12-16-03
*Resigned
(Note: The Oil and Gas Industry is nominating Clifton McMasters to j~dl the category of Oil
Industry.)
INDIVIDUAL EXPRESSING INTEREST
Chfton McMasters
Operations Manager, REH Energy, Inc. Received a
Bachelors in Business Adminislration from Texas A
& M University and is a Petroleum Engineer.
Drilled well supplying since 1974. (Oil Industry)
(6-15-04)
3
CITY COUNCIL
AGENDA MEMORANDUM
June 22,2004
AGENDA ITEM:
Motion setting a Public Hearing on the Proposed FY 2004-05 Operating Budget dudng the
Regular Council Meeting of June 29, 2004.
ISSUE:
The Texas Local Govemment Code requires that a municipality hold a public headng
on the proposed operating budget. Staff is recommending that a headng be set for
the Regular Council Meeting of June 29, 2004.
REQUIRED COUNCIL ACTION:
Set a public heating on the Proposed FY 2004-05 Operating Budget for June 29,
2004.
4
AGENDA MEMORANDUM
City Council Action Date: June 22, 2004
AGENDA ITEM:
Item A: A Resolution authorizing the City Manager, or the City Manager's designee, to
accept a grant from the Texas Department of Health in the amount of $38,061 for family
health and family planning services.
Item B: An Ordinance appropriating a grant in the amount of $38,061 in the no. 1066
health grant fund from the Texas Department of Healtfl for family health and family
planning services; and declaring an emergency.
ISSUE: The Health District is in receipt of Attachment #3 & 4 to Contract #7460005741A-
2004 Change No. 2, with the Texas Department of Health_ The amended contract provides
the Heard3 Department with $38,061 in financial assistance for family planning and fee for
services.
REQUIRED COUNCIL ACTION: Approval of the contract attachment and appropriation of
funds.
PREVIOUS COUNCIL ACTION: None.
FUNDING: There is no match funding required.
CONCLUSION AND RECOMMENDATION: Recommend City Council to approve the
contract attachment and appropriate funding for continuation of public health services.
Director of Public Health
BACKGROUNDINFORMATION
This item is an annual renewal of a grant that has been provided to the Health Department
from the Texas Department of Health for many years. The purpose of this funding is to
assist Iow income residents to achieve their family planning goals, to improve their health
status, to reduce the number of unintended pregnancies and to positively affect the
outcome of future pregnancies. This service provides assistance to a total of
approximately 4000 clients per year.
TEXAS DEPARTMENT OF I~ALTH
1100 WEST 49TH STREET
AUSTIN, TEXAS 78756-3199
STATE OF TEXAS
TDH Document No. 7460005741A2004
COUNTY OF TRAVIS
Contract Change Notice
The Texas Dcpastment of Health, hareinafter referred to as RECEIVING AGENCY. did heretofore enter into a contract in writing
with CORPUS CHRISTI-NUECES COUNTY PUBLIC HEALTH DISTRICT (CITY) hereinafter refen-ed to as PERFORMING
AGENCY. The parties tl~to now de~irc to amend such contract attachment(s) as follows:
SUMMARY OF TRANSACTION:
ATt NO. 03 : AC FAMILY HEALTH - FEE FOR SERVICE
AT'r NO. 0~ : AC FAMILY HEALTH - FAM1LY PLANNING
All terms and conditions not hereby aw~nded remain in fifll force and effec-t.
EXECUTED IN DUPLICATE ORIGINALS ON THE DATES SHOWN.
CORPUS CHRISTI (CITY OF)
Authori~:l C0htractifil, Entity (tYPe above if different
from PERFORMING AGENCY) for and in behalf of:
PERFORMING AGENCY:
CORPUS CHRISTI.NUECES COUNTY PUBLIC
HEALTH DISTRICT (CITY)
By:
(Signature of person authorized to sign)
(Name and Title)
Date:
RECOMMENDED:
By:
(PERFORMING AGENCY Director, if different
from person authorized to sign contract
RECEIVING AGENCY:
TEXAS DEPARTMENT OF HEALTH
(Signature of person authorized ua sign)
Bob B urnet'te, Dh'ector
procurement and Con~-actin~: Services Division
(Nam~ and Title)
WW PCSD - Rev. 2A}3
Cover Page 1
DETAILS OF ATTACHMENTS
Atff TDH Program ID/ Term Financial Assislance Direct
Amd TDH Purchase Order Assistance
No. Number Begin End Source of Amount
Funds*
SEAFOOD
01 0000001060 09/01/03 08/31/04 State 22,500.00 0.00
ACFH/FEE
03 0000002229 06/01104 08/31104 93.994 15,368.00 0.00
ACFH/FEE-FP
04 06/01/04 08/31/04 State 22,693.00 0.00
TDH D~cument No.7460005741A20~4 Totals
$ 60,561 00 $ 0.00
Change N~. 02
Total Amount
(TDH Share)
22,500.00
15,368.00
22,693.00
$ 60,561.00
*Federal funds are indicated by a number from the Catalog of Federal Domesuc Assistance (CFDA), if apphcable. REFER TO
BUDGET SECTION OF ANY 7~RO AMOUNT ATTACftMENT FOR DETAILS.
Cover Page 2
RESOLUTION
AUTHOR{ZING THE CITY MANAGER, OR THE CITY MANAGER'S
DESIGNEE, TO ACCEPT A GRANT FROM THE TEXAS DEPARTMENT
OF HEALTH IN THE AMOUNT OF $38,061 FOR FAMILY HEALTH AND
FAMILY PLANNING SERVICES
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 accept
a grant from the Texas Department of Health in the amount of $38,061 for family health
and family planning services.
ATTEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
APPROVED: May 21, 2004
_~.~.~ ~__~._._._ ~7~,~
Lisa Aguilar ~
Assistant City Attorney
for City Attorney
Samuel L. Neal, Jr.
Mayor
June 6 2004 TOll,doc
Corpus Christi, Texas
of ,2004
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
ORDINANCE
APPROPRIATING A GRANT IN THE AMOUNT OF $38,061 IN
THE NO. 1066 HEALTH GRANT FUND FROM THE TEXAS
DEPARTMENT OF HUMAN SERVICES FOR FAMILY HEALTH
AND FAMILY PLANNING SERVICES; AND DECLARING AN
EMERGENCY.
BE IT ORDAINED BY THE CITY' COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That a grant in the amount of $38,061 is appropriated in the No.
1066 Health Grant Fund from the Texas Department of Human Services for
family health and family planning services.
SECTION 2. That upon wdtten 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
day of ,2004.
ATTEST
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Approved: May 21, 2004
Lisa Aguilar
Assistant City Attomey
for C~ Attorney
Samuel L. Neal. Jr.
Mayor
Corpus Christi, Texas
__ day of ,2004
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance an
emergency exists requiring suspension of the Charter rule as to considera[ion and
voting upon ordinances at two regular meetJegs: I/we, therefore, request that you
suspend said Charter rule and pass this ordinance finally on the date it is introduced, or
at the present meeting of the City Council.
Respectfully, Respectfully,
Samuel L. Neal, Jr.
Mayor
Council Members
The above ordinance was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Melody Cooper
Javier D. Colmenero
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
5
CITY COUNCIL
AGENDA MEMORANDUM
City Council Action Date: June 22, 2004
AGENDAITEM:
Item A: A resolution authorizing the City Manager, or the City Manager's designee, to
accept an amendment to the current Immunization grant from the Texas Depafb.ent of
Health in the amount of $34,121.00 for personnel, fringe benefits, travel, and supplies for
an immunization program.
Item B: An ordinance appropriating the amended grant from the Texas Depa~b.ent of
Health in the amount of $34,121.00 for personnel, fringe benefits, travel, and supplies, to
maintain an immunization program in the No. 1066 Health Grants Fund; and declaring an
emergency.
ISSUE: Immunization cervices are among a variety of preventive health services offered by
the Health District that are funded by the Texas Deparl~ent of Health (TDH).
Immunization funding (Attachment No. 02Ato Contract 7460005741-2005, Change No. 03)
is an increase in the amount of $34,121.00 which covers personnel, fringe benefits, travel,
and supplies to maintain an immunization program for children, adolescents, and adults,
wffh special emphasis on children two years of age or younger_ This attachment is an
increase for additional funds to conduct services through August 31, 2004.
REQUIRED COUNCIL ACTION: Approval of the contract attachment and appropriation of
funds.
PREVIOUS COUNCIL ACTION: None
FUNDING: There is no match funding required.
CONCLUSION AND RECOMMENDATION: Recommend City Council to approve the
contract attachment and appropriate funding for continuation of immunization services.
~Signature)
BACKGROUNDINFORMATION
BACKGROUND: The Texas Department of Health has supported the Health District
Immunizations Program through grant funding for many years. Texas Department of
Health is in the process of placing many of its contracts on a calendar year schedule,
rather than a fiscal year schedule due to these changes we will see several amendments to
this grant. The Immunizations Program of the Health District has provided 48,166
immunizations to 26,759 persons during the past year. In addition to direct client services,
the contract supports promotion of the need for immunizations to the general public and
the medical community, as well as surveillance and investigation of vaccine- preventable
diseases. It also enables the Health Distdct to provide audits of schools and day care
centers' to assist them in complying with state requirements for immunization of children.
This contract requires no matching funds.
TEXAS DEPARTMENT OF HEALTH
1100 WEST 4grH STREET
AUSTIN, TEXAS 78756-3199
STATE OF 'r~zX. AS
TDH I~cument No. 7461X105741 2~05
COUNT~ OF TR.AVIS
Contract Cbs n~ Notice No. 03
All lerms and cosKl/lions not I~r~by ameaded ~nain in
~l'~ ~ D~ O~G~ ON ~ DA~ ~O~.
~US ~ (~ I'Y ~
~ ~~ ~ve i~ ..............
[rom PER~RMING AGENCY) fc~ and ia be.l~lf of--
PERFORMING AGENCY:
CORPUS UHRISTI-NUECE$ COUNTY PUBLIC
FI~ALTH DI~-i'RICT (CITY')
By:
(Signature of person authoz'L~d to sign)
RECEIVING AGENCY:
'1'~ DEPARTMENT ~
By: ~
(Sig~ana'~ of petma authodz~ to sign)
(Name ~ Title)
Dat~:
By:. ~ 6./~
(PER.PORMING AGENCY Dim~, ff diff~a'ent
from ~ au~ ~ si~ ~a~
Bob Bm~ctm, Director
~nt and ConWactme Services Division
(Nam~ md Tale)
DB l~2SD - Rev. 2/03
Cover Page 1
DETAILS OF ATTACHMENTS
Att/ TDH Program ID/ Term Tcaal Amount
Amd TDH Purchase Order CrDH Share)
No. Number Begin End Source of Amcmnt
Funds*
01 00OXI01621 01/01/B4 1Zt3 l/D4 93. ll6 91,523.00 0.00 91.523 00
02A 0000001760 01~ltD4 12/31/04 State 93.268 96,233.00 0.00 96233.00
D~SP
03 0000002261 07/01K)4 03/'29/05 93.988 89,010.00 0.00 89,010.00
TDH Domment No.7460005741 2005 Totals
f~nange_No. 03 $276,766.00 $ 0.00 $276,766.00
Financial Assimance Direct
Assistanc~
*Federal funds ar~ indicated by · number from the Catalog of Fnderal Domestic Assistance (CFDA), if applicable. P,J~Ie.R TO
BUD~I' SECTION OF ANY Zae~O AMOUNT AT'rACHMENT FOR DETAILS.
Cover Page 2
A RESOLUTION
AUTHORIZING THE cl'rY MANAGER, OR THE CITY MANAGER'S
DESIGNEE, TO ACCEPT AN AMENDMENT TO THE CURRENT
IMMUNIZATION GRANT FROM THE TEXAS DEPARTMENT OF
HEALTH IN THE AMOUNT OF $34,121 FOR PERSONNEL, FRINGE
BENEFITS, TRAVEL, AND SUPPLIES FOR AN IMMUNIZATION
PROGRAM.
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 accept
an amendment to the curTent immunization grant from the Texas Department of Health
in the amount of $34,121 for personnel, fringe benefits, travel, and supplies for an
immunization program.
A'I'rEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Samuel L. Neal, Jr.
Mayor
APPROVED AS TO LEGAL FORM: June 17, 2004
Assrstant City Attorney L./
for the City Attomey
Corpus Chdsti, Texas
of
,2004
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
H:~.EG-DiR~lizabeth',Dept Files~EH Resolutlons'~EHres142.doc
AN ORDINANCE
APPROPRIATING THE AMENDED GRANT FROM THE TEXAS
DEPARTMENT OF HEALTH IN THE AMOUNT OF $34,121 FOR
PERSONNEL, FRINGE BENEFITS, TRAVEL, AND SUPPLIES TO
MAINTAIN AN IMMUNIZATION PROGRAM IN THE NO. 1066
HEALTH GRANTS FUND; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS, THAT:
SECTION 1. An amended grant, in the amount of $34,121, from the Texas
Depaft.~ent of Health is appropriated in the No. 1066 Health Grants Fund for
personnel, fdnge benefits, travel, and supplies to maintain an immunization
program.
SECTION 2. 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 __day
of ,2004.
ATFEST
CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Samuel L. Neal, Jr.
Mayor
Approved as to lega} form: June 17, 2004
Ass tant City Attorney ( /
for the City Attomey ~
Corpus Chdsti, Texas
day of
,2004
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinances,
an emergency exists requiring suspension of the Charter rule as to consideration
and voting upon ordinances at two regular meetings. I/~,e, therefore, request
that you suspend said Charter rule and pass the ordinance finally on the date it is
introduced, or at the present meeting of the City Council.
Respectfully,
Respectfully,
Samuel L Neal, Jr., Mayor
Council Members
The above ordinance was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garre~t
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
H:~-EG-DIR~elizabeU~h~p[ FI~e.s~EH Ordinanc~e~s'~Hordl48.DOC
6
AGENDA MEMORANDUM
DATE: May 11,2004
SUBJECT: Oso Water Reclamation Plant Cladfier 2, 3, 4 Structural Improvements
(Project No. 7271)
AGENDA ITEM:
Motion authorizing the City Manager or his designee to execute a construction contract
with R.M. Wdght Construction of El Paso, Texas in the amount of $2,007,600 for the Oso
Water Reclamation Plant Clarifier 2, 3, 4 Structural Improvements for Total Base Bid C.
ISSUE: This project is necessary to remove and replace major equipment at the Oso
Water Reclamation Plant to protect against service interruptions, plant overloading, permit
violations and to increase efficiency.
FUNDING: Funds for this project are available in the FY 2003-2004 Wastewater Capital
Improvement Budget.
RECOMMENDATION: Staff recommends approval of the motion as presented.
Foster Croweli,
Director of Wastewater Services
scobar, P. E.,
Director of Engineering Services
Additional Supl3ort Material:
Exhibit"A" Background Information
Exhibit 'B" Project Budget
Exhibit"C" Bid Tab
Exhibit "D" Location Map
BACKGROUND INFORMATION
SUBJECT: Oso Water Reclamation Plant Cladfler 2, 3, 4 Structural Improvements
(Project No. 7271)
PRIOR COUNCIL ACTION:
1. December 17. 2002 - Motion authorizing the City Manager, or his designee, to
award a Contract For Professional Services to LNV Engineering of Corpus Chdsti,
Texas in the amount of $256,600 for the Oso Wastewater Treatment Plant Cladfier
Bddge Structures and Aeration Basin Fine Bubble Diffuser Retro-Fit.
2. October 21,2003 - Motion authorizing the City Manager, or his designee, to award
a construction contract to Elite Construction of Corpus Chdsti, Texas in the amount
of $130,000 for Oso Water Reclamation Plant Aeration (East) Basins Structural
Improvements (Project 7270).
3_ January 10, 2004 - Approval of the FY 2003 Capital Improvement Budget in the
amount of $173,624,300_
PRIOR ADMINISTRATIVE ACTION:
1. February 20, 2002 - Distribution of Request For Qualifications (RFQ) No. 2002-01
(Aviation, Street, Water, Wastewater, Gas Improvement Projects) to 42 engineering
firms (28 local and 14 out-of-town).
2. March 13, 2002 - Addendum No. 1 to the Request for Qualifications (RFQ) No.
2002-01 (Aviation, Street, Water, Wastewater, Gas Improvement Projects) to 42
engineering firms (28 local and 14 out-of-town).
3. March 15, 2002 - Addendum No. 2 to the Request for Qualifications (RFQ) No.
2002-01 (Aviation, Street, Water, Wastewater, Gas Improvement Projects) to 42
engineering firms (28 local and '14 out-of-town).
4. March 26, 2002 - Addendum No. 3 to the Request for Qualifications (RFQ) No.
2002-01 (Aviation, Street, Water, Wastewater, Gas Improvement Projects) to 42
engineering firms (28 local and 14 out-of-town).
5. March 28, 2002 - Addendum No_ 4 to the Request for Qualifications (RFQ) No.
2002-01 (Aviation, Street, Water, Wastewater, Gas Improvement Projects) to 42
engineering firms (28 local and 14 out-of-town).
6. September 25, 2003 - Administrative approval of Amendment No. 1 to a contract
for professional services with LNV Engineering, Inc. of Corpus Christi, Texas in the
amount of $6,000 for the Oso Wastewater Treatment Plant Cladfier Bridge
Structures and Aeration Basin Fine Bubble Diffuser Retro-Fit.
FUTURE COUNCIL ACTION:
1. Approval of Phase 3 Process Evaluation
EXHIBIT "A" I
Page 1 of 3
PROJECT BACKGROUND:
On December 17, 2002, the City of Corpus Chdsti entered into a contract with LNV
Engineering for the Oso Water Reclamation Plant Structural and Process Improvements.
The treatment process at the Oso Water Reclamation Plant relies on major equipment
which must be rehabilitated or replaced to protect against service interruptions, plant
overloading, permit violations, and to increase efficiency. This design would be
accomplished in three phases as follows:
Phase 1 -Aeration Basins Structural Improvements
Phase 2 - Cladfier 2, 3, 4 Improvements
Phase 3 - Oso Water Reclamation Plant Process Evaluation
Phase 1 -Aeration Basins Structural Improvements: This phase consists of structural
improvements to existing catwalks for the east plant aeration basins and aerobic digester
No. 4. The catwalk structures serve two basic purposes. First, they serve as the steel tube
air distribution bridges that feed the air drops. Second, they act as walkway structures
which span the length of the basins for personnel use. The east plant aeration basin
catwalk structures have been in service approximately twenty-five years. Due to the steel
tube column supports being submerged in the basin wastewater, the columns show signs
of heavy corrosion near the waterline or an area defined as the 'splash zone'. The
corrosion exhibited on the existing four (4) inch steel tube columns has created a
potentially unsafe structure for personal use.
On October 21,2003 the City Council awarded a construction contract to Elite Construction
of Corpus Christi, Texas in the amount of $130,000 to complete Phase I of this project.
Currently, the contract was completed May 2004
Phase 2 - Clarifier 2, 3, and 4 Improvements (Brld;le Replacement) - The existing
clarifier bridges are over 20 years old and exhibiting signs of age and deterioration. The
concrete located in the clarifiers shows signs of wear and visible cracks are emitting
moisture signifying leaking in the basin. This phase will replace the existing mechanically
driven clarifier bridges which have a high operation and maintenance cost with a hydraulic
drive clarifier bridge which has less moving parts and Iow operating and maintenance cost.
Other related work will include the replacement of the trough supports and ceiling of all
cracks in the basin.
Phase 3 -Process Evaluation- At this Ume, no Preliminary, Design, Bid, or Construction
Phase Services are authorized. Services will be negotiated after completion of Phase 1
Aeration Basins Interim Structural Improvements and Phase 2 Clarffier Improvements and
acceptance by the Director of Engineering Services. Subsequent amendments to the
Consultant Contract will authorize work for Phase 3 Process Evaluation, and will require
Council action.
IEXHIBIT"A" I
Page 2 of 3
PROJECT DESCRIPTION: Phase 2 - Clarifier 2, 3, and 4 Improvements -
The proposed project consists of removing and replacing three (3) existing traveling
bridges with 3 new Traveling Bridges for Rectangular Clarffiers, removing and replacing
one hundred twenty (120) existing trough supports with hot-dip galvanized steel trough
supports, concrete crack repair and wastewater sludge removal and disposal in
accordance with the plans, specifications, and contract documents.
BID INFORMATION: The project consists of three (3) altemative base bids with three (3)
corresponding additive alternates.
· Total Base Bid A consists of replacement of one cladfier bridge
· Additive Alternate No. I consists of an algae cover for one bddge
· Total Base Bid B consists of replacement of two clarifier bridges
· Additive Alternate No. 2 consists of an algae cover for two bddges
· Total Base Bid C consists of replacement of three clarifier bddges
· Additive Alternate No. 3 consists of an algae cover for three bridges
On June 9, 2004, seven (7) proposals were received. The bids ranged from:
· Total Base BidA: $ 675,200 to$ 935,400
· Additive Alt No. 1: $ 48,197 to$ 90,000
· Total Base Bid B: $1,338,400 to $1,870,800
· AdditiveAIt No. 2: $ 86,493 to $ 180,000
· Total Base Bid C: $2,007,600 to $ 2,806,200
· Additive Alt No. 3: $ 128,105 to$ 270,000
Total Base bid C is recommended option based on wastewater department need and cost
of project.
The Engineer's estimated construction cost for the project is $2,305,800. R.M. Wright
Construction of El Paso was the lowest responsive bidder. The Cib/s Consultant, LNV
Engineering, Inc. and city staff, recommend that based on Iow bid and satisfactory
references, a construction contract be awarded in the amount of $2,007,600 to R.M_ Wdght
Construction of El Paso, Texas for Total Base Bid C for the Oso Water Reclamation Plant
Clarifier 2, 3 and 4 Structural Improvements for Total Base Bid C only. Past satisfactory
work with the CiLy of Corpus Christi includes the Oso Water Reclamation Bar Screen
Replacement, Phase 2.
CONTRACT TERMS: The contract specifies that the project will be completed in 360
calendar days, with completion anticipated by July 2005.
EXHIBIT "A" I
Page 3 of 3
OSO WATER RECLAMATION PLANT CLARIFIER BRIDGES
(Project No. 7271)
PROJECT BUDGET
June 22, 2004
FUNDS AVAILABLE:
Wastewater CIP ...............................................................................................
FUNDS REQUIRED:
Censtructien (R.M. WrightConstruction) ................................................................
Centingencies ..................................................................................................
Consultant (LNV Engineering) .............................................................................
Engineering Reimbursement ............................................................
Finance Reimbursement .....................................................................
Incidentals (Printing, Advedising, Aerial Phol[o) .......................................................
Total ..............................................................................................................
$2,563,460.00
$2,007,600.00
200,760.00
262,600.00
60,000.00
30,000.00
2,500.00
$2,563,460.0O
EXHIBIT "B"
Page 1 of I
TAI~ULATION OF BIDS
DEPARTMI~NT OF ENGII~ERING - ci'rY OF CORPUS CHRISTI
TABULATED BY: 'Angel IL Escobar, P.~, Dir*ctor of Engineering Services
DATE: June 9, 2004 ~ OF COMPLETION:
BASE BID A - 240 C~lendar Dnys
BASE BID B - 300 Calendar Days
BASE BID C - 360 Caleadar Days
Oso Wa~r Reclamation Plant
Clartfler 2, 3, and 4 Strnctural Improvement~
D~ON
BASE BID A
A-1. Mobilization/Demobilizmion for work
to be done on Clarifie~ Basin No. 4
A-2. B~sin demote-ring, sludge removal and
disposal for work to be done on
Clarifier Basin No.
A-3. Removal and replacement or traveling
bridge fo~ rect~n~..d~
removal cosh cquJpm~n[ ~ and
in~z][~tion co~t for work to be done on
Clm-i~ B~in No.
A-4. Remove and repl~c~ t. mugh suppor~
wi~h hot dip g~van~zcd s~Jl~orts
(4x4x3/4" ffesne & 2x2x3/8" brace) for
wo~ to b~ done on Cl~dficr
No.O
A-5. Concrc~ rc~n' using
Injection (a]~,rox~natc]¥ 450 LF)
work to be 4one on Ctarifier Basin No.
4
TOTAL BASE BID A
QTY UNIT
I LS
700 CY
1 LS
I LS
450 LF
RM Wright Construction Co.
285 Rio Wmt Drive
El ?lao, TX 79932
UNIT PRICE AMOUNT
ENGLNEER'S ESTIMATE: $'2~305,800
JM Dnv'ldson, Inc.
PO Box 4639
Corpus Christi, TX 78469
UN1T PRICE AMOUNT
$ 35,000.00 $ 35,000.00 5; 4,988.00 $ 4,988.00
Page 1 of 12
30.00 $ 21,000.00 $ 76.19$ 53,333.00 $
R.S, Black Civil Co~truetors
PO Box 6218
Corpus Clarisfl, TX 78466
UNIT PRICE AMOUNT
30,00~.00 $ 30,000.00
40.00 $ 28,000.00
586,200.00 $ 556,.200.00 $ 636,387.00 $ 636,387.00 5; 594,000.00 5; 594,000.00
$ 15,000.00 $ 15,000.00 $ 24,866.00 $ 24,866.00 $
40.00 $ 18,000.00 $ 64.47 $ 29,012.00 $
675~00.00 $ 748,586,00 $
24,000,00 $ 24,000.00
48.00 $ 21,600.00
697,600.00
Page 2 of 12
TABULATION oF BIDS
~r~G~RINa. crr~ OF co~us ~mosT~
TABULATED BY: 'Angel R. Eseob~r, P.E, Director ol ~ _ng~e~ring Service~
DATE: .lune 9, 2~04 ~ OF COI~PLETION:
BASE BID A - 240 Calendar Day~
BASE BID B - 304} Calendar Days
BASE BID C - 360 Calendar Days
ENGINEER'S ESTIMATE: $2,305,800
0~o Water Reclamation Plant
Clarlfler 2, 3, and 4 Struc~ral Improvements
DF~.qCRIPTION
BASE BID B
B-I. Mobi]izafion/Demobi)i~on for ~
~o be done on Clarifier Basins No. 2
and No. 4
B-2. B~n d~.va~d~g, s[udg~ ~ov~l and
disposal for work m be done on
Cl~rtfier Basins No. 2 and No. 4
B-3. Removal a~t rrplacemen£ or U~v¢ling
bridge for ~ngular clarifier,
remov~ cos~ o~uJpmem co.sC, ~nd
insUd]~Jon cost for work to b~ done on
Clarifi~r Bazim No. 2 andNo. 4
B4. R~move and ml)lace m~ugh supports
(4x4~c3/4" frame & 2x2x3/8" brace) for
work to be done on Clarifier Basin
No.4
B-5, Co~c~:~e repair using Polyurethane
Injection (approxJma~ly 900 LF) for
work to be done on Clarifier Basins
No, 2 and No. 4
TOTAL BASE BID B (I'I'If.,MS B-I THRU B-5):
QTY, IYNIT
LS
1400 CY
1 LS
I LS
9OO LF
RM Wright CoIotruc~ion Co,
28~ Rio Wes~ Drive
El ~ TX 79932
UNrF PRICE AMOUNT
JIM David~o~, luc~
PO Box 4~39
Corpuz Chr~t, TX 78469
UNIT PRICE A_MOUNT
R.S. Black Civil Constructors
PO Box 6218
Corpus Chr'mi, TX '71~6
UNIT PRICE AMOUNT
$ 55,~.00 $ 55,000.0~$ 5,988.00 $ 5,988.00 $ 30,000,00 $ 30,000.00
$ 30.00 $ 42,000.00$ 74.19 $ 103,866.00 $
40,00 $ 56,000.00
$ 1,179,900.00 $ 1,179,900.0~ $ 1,239,105.00 $ 1,2.39,105.00 $ 1,199,000.00 $ 1,199,000.00
$ 30,000.00 $ 30,0~0.00 $ 48,632,00 $ 48,632.0~ $
$ 35.00 $ 31,500.00 $ 60.47 $ 54,423.00 $
$ 1~400.00 $ 1,452,014.00 $
45,00 $ 40,500.00
PaRe $ of 17.
TABULATION OF BIDS
DEPARTMENT OF ENGINEEIDlflG - Cl'l ¥ OF CORPUS CHRISTI
TABULATED BY: 'AngellL Eseobar, P.E.,Dlrector of EngineeringServtcea
DATE: Jmae 9, 2004 TIME OF COMI'LETION:
BASE; BH)A - 240 Calandar Days
BASE BID B - 300 Calendar Days
BASE BID C - 360 Calendar Days
ENGINEER'S ESTIMATE: $2~05,800
(3so Water Reelmnntion Plant
Clartfler 2, 3, and 4 S~-ucmrnl Improvements
DESCRIYI'ION
BASE BID C
C-I. Mobiliza~onfD~mobiliz~on for work
to ~ ~e on Cl~fi~ B~s No. 2,
No. 3, ~d No. 4
C-2. ~s~wo~doneon
Cl~fi~ B~ No. ~ No, 3, ~d No.
4
C-3. bridge for r~ c]~fier,
Cl~fi~ B~ins No. 2, No. 3, ~d No.
4
(4x4~/4" ~ & 2~/8' b~) for
No.4
~j~on (~m~ly 1350 LF) for
No. ~ No. 3, ~d No. 4
QTY. UNIT
I LS
2100 CY
I LS
I LS
1350 LF
KIM Wright Construction Co,
285 Rio West Drive
El Paso, TX 79932
I.rINTF PRICE AA~OUNT
JM Davidson, lne.
PO Box 4639
Corpus Christi, TX 78469
UNIT PR/CE AMOUNT
$ 80,000.00 $ g0,000.00 $ 6,000.00 $ 6,000.00
$ 30.00 $ 63,000.00 $ 72.19 $ 151,599,o0 $
R-S, Black Civil Constructors
PO Box 6218
Corpus Christi, TX 78466
UNIT PR/CE AMOUNT
30,000.00 g 30,000.00
40.00 $ 84,000.00
$ 1,776,400.00 $ 1,776,400.00 $ 1,727,9gl.00 $ 1,727,9gl.00 $ 1,800,650.00 $ 1,800,650.00
$ 45,000,00 $ 45,000.00 $ 73,498,00 $ 73,498,00 $ 64,000.00 $ 64,000.00
32.00 $ 43,200.00
2,007,600.00
52,46 $ 70,821,00 $
2,029399.00 $
41.00 S
55~50.00
2,034,04}0.00
TABULATION OF BH)S
DEPARTMENT OF ENGINEERING . C;ITY OF CORPUS CI:I~tISTI
Page 4 of 12
TABULATED BY: *Angel IL Es~bar, P.E., Director of Engineering Servicez
DATE: Jnne 9, 2004 TIME OF COMI'LET1ON:
BASE BI]) A - 240 Calendar Dnya
RASE BID B - ~00 Calendar Days
BASE BID C - 3~0 Calendar Days
ENGINEER'S ESTIMATE: $2,305,800
Oso Wel~r l~.elamn~on Plant
ClarHIer 2, 3, and 4 St~'uct~r~l Impr~vement~
DESCR~TION QTY. UNIT
ADDITIVE ALTERNATE 1
Sla~ted (lifdng-typ~) alga~ cover~ for 1 LS
¢larifiex tmugh~ (580 LF) for Clatifier
Basin No, 4
TOTAL ADDFFIV~ ALTERNATE 1:
RaM Wright Con.~'ncflon Co.
285 Rio West Drive
El ~ TX 79932
UNIT PRICE AMOUNT
JM Davld~on, Inc.
PO ~ox 4639
Corp~ Christi, TX 78469
UNIT PRICE AMOUNT
$ 62,200.00 $ 62,200.00 $ 48,197.00 $ 48,197.00
$ 62,2~0.00 $ 48,197.00
ILS. Black Civil Conztructors
PO Box 6218
Corpn~ Christi, TX 78466
UNIT PRICE AMOUNT
53,500.00 $ 53,500.00
ADDITIVE ALTER.NATE 2
AA-2. Slanted 0ifling-typc) algae covers for
clarifier m:mgks (1160 IF) for Clarifier
B~ina No. 2 and No. 4
TOTAL ADDITIVE ALTERNATE 2:
1 LS
$ 124,400.00$ 124,400.00 $ 86,493.00 $ 86,493.00 $
$ 124,400.00 S 86,493.00 $
107,000.00 $ 107,000.00
107,000.00
ADDrlIVE ALTERNATE 3
AA-3. Slanted (lifting-type) algae covers for
clarifier txoughs (1740 LF) fo~ Clarifiex
Bazim No. Z, No. 3, and No. 4
TOTAL ADDITIVE ALTERNATE 3:
I LS
$ 186,600.00 $
$
186,600.00 $ 128,105.00
186,600.00
$ 128,105.00 $ 160,000.00 $ 160,000.00
128,105.00 $ 160,000.00
Page 5 of 12
TABULATION OF BIDS
DEPARTlVfENT OF ENGINEERING - CITY OF COP.PUS CHRISTI
TABULATED BY: 'Angel R. Eecober, P,E. Director of Eagtaecring S~rvfoe~
DATE: Jue 9, 2,064 TIME OF CON[PLETION:
BASE BID A - 240 C~nd~r Days
BASE BID B - 300 C~l~dar Days
BASE BID C - 360 C~lendar Days
ENGEN'EER'S ESTIMATE: $2,305,800
0~o Water Reclamation Plant
Clariller 2, 3, and 4 Structural lmprovementn
DF_~ON
BASE BID A
A-l, Mobili~-~fion/DcmobJ]iz~tion for work
to be done on Clarifier Basin No. 4
A-2. Basin dewate~ing, sludge remova~ aad
di~3~al for work to be done on
Clarificr Basin No. 4
A-3. R~moval and replacement or navel
bridge for r~:tangular clarifier,
rcmnval cast, equipment cc~t, and
installation cost for work to be done on
Clarifier Basin No. 4
A-~. Remove and r~plac~ trough supports
wi~h hot dip galvanizc~i supports
(4x4~c3/4' frame & Zx2x3/0" brac~) for
work to be done on Clatifier Basin
No.4
A-5. Concrete repair using Polyur~haae
Injection (appmxima~ly 450 LF) for
work to be done on Clarificr Basin No.
4
TOTAL BASE BID A (ITEMS A-l THRU A-S'):
QTY. UNIT
I LS
700 CY
I LS
I LS
450 LF
Laugtdin-Thyxsen, Ltd.
1320 Boyle~ St.
Hou~to,a, TX 77020
UNIT PRICE AMOUNT
LEM ConzWuctlon Co,
10849 Klnghurst, $te 150
Houston, TX 77099
UNIT PRICE AMOUNT
$ 95,000,00 $ 95,000.00 $ 25,000.00 $ 25,000.00
Holloman Cor~oration
13730 IH 10 E
Couvers~ TX 78109
UNIT PRICE AMOUNT
$ 49,~02.00 $ 49,402.00
$ 50.00 $ 35,000.00 $ 50,00$ 35,000.00 $ 78.00
760,000.00 $ 760,000.00 $ 687,000.00 $ 687,000.00
$ 22,000.00 $ 22,00~.00 $ 15,000.00 $ 15,000,00
$ 689,493.00 $ 689,493.00
$ 19,252.00 $ 19,252.00
$ 52.00 $ 23,400.00 $ 66.00 $ 20,700.g0 $ 51.00 $ 22,950.00
$ 935,400.00 $ 7ff2,700.00 $ g35,697,00
Page 6 of 12
TABULATION OF BIDS
DEPARTMENT OF ENGINEERING - I211'Y OF CORPUS CHRISTI
TABULATED BY: 'Angel l~ Eacobar, P.E., Director of I~n~neerlng Servicez
DATE: June 9, 2004 TIME OF COMI~LETION:
BASE BID A - 240 Calendar Days
BASE BID B - 300 Calendar Days
BASE BID C - ~60 Calendar Days
ENGINEER'S E~-I'IMATE: $2,305,800
O~o Water l~e~..lama~lon Plant
Clarifler 2, 3, and 4 $~uctnral ImprovemenO
DESCRIPTION
B-I. Mobi~iTa~On/Demobilization for work
to be done on Clarifier Basin~ No. 2
and No. 4
B-2. Basin dewatcring, sludge r~noval and
disposal fo~ workm be done on
C]arifier Bazins No. 2 and No. 4
B-3. R~a'noval and r~placemcnt or u'aveling
bridge fo~ rec~angulax clarificr,
r~noval cost, equipment ~ and
in.st~lalion cosl fo~' work to be done on
Clasifier Basins No. 2 and 1'4o. 4
B-4. R.~nov¢ and replace trough supports
with hot dip ga]rani?ed sllpport3
(4x4'~3/4" f~me & 2x2~.3/8" b~ce) for
work to be done on Clarificr Basin
No.4
B-5. Concr~ r~r using Pdiytu'~-ame
Injeciion (approximamly 990 LF) fo~
work to be done on Clarificr Bazin~
No. 2 andNo. 4
TOTAL BASE BID B OTEMS ILl TliRtl
QTY. UNIT
I LS
1400 CY
I LS
1 LS
I~u_~hlln-Thylaen, Ltd.
1320 Boylm SL
Houston, TX 77020
UNIT PRICE AMOU3FT
LEM Conltrucflon Co.
10849 KIn~hllF~t, St, 150
Houston, TX 77099
UNIT PRICE AMOUNT
$ 190,0~0.00 $ 190,000.00 $ 50,000.00 $ 50,000.00 $
$ 50.00 $ 70,000.00 $ 50.00$ 70,000.00 $
Holloman Corporation
13730 IH 10 E
Converse, TX 78109
UNIT PRICE AMOUNT
59,217.00 $ 59,217.00
78.00 $ 109,200.00
$ 1,520,00~.00 S 1,520,000.0~ $ 1,351,000.00 $ 1,351,000.00 $ 1,372,966.00 $ 1,372,966.00
$ 44,000.00 $ 44,000.09 $ 30,0il0.00 $ 30,000.00 $
$ 52.00 $ 46,800.00 $ 41).00 $ 36,0~9.00 $
$ 1,870,800.00 $ 1,537,000.0~ $
38,504.00 $ 38,504.00
51.00 $ 45,900.00
1,625,787.00
Page 7 of 12
TABULATION OF BIDS
DEPARTMENT OF ENGINEERING - CITY OF COi~PUS CHRISTI
TABULATED BY: 'AngellL Eseobar, P.E.,l)irector of EngtneeriugServices
DATE: June 9, 2004 TIME OF COMPLETION:
BASE BID A - 240 Calendar Days
BASE BID B - 300 Calendar Days
BASE BID C - 360 Calendar Days
ENGINEER'S ESTIMATE: $2,305300
Oso Wattr R~lamation Plant
Clartfler 2, 3, and 4 Structural Improvements
DESCRIPTION
BA~E BID C
C-I, Mobilhzation, ff)emobillzation for work
to bc do~ on Clsrifier Basins No. 2,
No. 3, and No. 4
C-2. disposal for work ~o b~ done on
Cla~fier Basins No, 2, No. 3, and No,
4
Remove and replace ~tough suppor~
wi~ hot dip galvmized supports
(4~4x.3/4' fi'~me & 2x2ot3/8' brace) for
work to be done on Clatifier B~in
NoA
C--4. R~nove mad r.~plaee ~ugh suplx~
~ith hot dip galvanized supports
(4x4x3f4' fram & 2x2.x2,/g' br~ee)for
work to be do~e on Cl~tifier Basias
No. 2, No. 3, and NoA
C-5. Concre~ repair ming Polyurethane
hajeetion (app~ximately 1350 LF) for
work to be done on Clarifier Basins
No. 2, No. 3, ~nd No. 4
TOTAL BASE BID C (ITEMS ¢-1 THRU
QTY UNIT
1 LS
210~ CY
I LS
I LS
1350 LF
]~u_~h lin-Thymes, Ltd
1320 Boyles St.
Houston, TX 77020
UNIT PRICE AMOUNT
LEM Conz~uetion Co.
10849 Ktn~hurst, Ste
Houston, TX 77099
UNIT PRICE AMOUNT
$ 285,000.00 $ 285,000.00 $ 75,000.00 $ 75,000.00
50.00 $ 105,000.00 $ 50.00 $ 105,000.00
Holloman Corporation
13T30 IYI 10 E
Converse, TX 78109
UN1T PR/CE AMOUNT
68,588.00 $ 68,588.00
78.00 $ 163,800.00
2,280,000.00 $ 2~80,000.0(} $ 2,0131000.00 $ 2,013,000.00 $ 2,056,747.00 $ 2,056,747.00
$ 66,000.00 $ 66,000.00 $ 45,000.00 $ 45,000.00 $
$ 52.00 $ 70,200.00 $ 37.00 $ 49,950.00
$ 2~o63oo.o0 $ z,2sT,sso.oo
57,757.00 $ 57,757.00
51.00 $ 68,850.00
2,415,742.00
Pa~e 8 of 1Z
TABULATION OF BIDS
DEPA~Tl~NT OF KNGINEEI~NG - CITY OF CORPUS CHRISTI
TABULATED BY: 'Angel R. Escobar, P.E., Director of gnglne~rlag Servtcas
DATE: June 9, 2004 TIME OF COMPLETION:
llASE BI]) A - 240 Calendar Days
BASE BID B - 300 Calendar Days
BASE BID C - 360 Calendar Days
ENGINEER'S ESTIMATE: $2,305~00
Oso Water Reclamation Plant
Cl~riller 2, 3, and 4 S~actnrul Improvements
Dg~L--'RII' 1 iOlq
ADDITIVE ALTERNATE 1
AA-I. Slanted 0ilting-type) algae covers for
clatifier ~xougks (580 LF) for Claxifier
Baa in No. 4
TOTAL ADDI*I'I~fE ALTERNATE 1:
Laughlln-Thys~en, Ltd.
1320 Boyl~ St.
HousWn, TX 77020
UNIT PRICE AMOUI~
$ 90,000.00 $ 90,000.00
S 90,000,00
LEM Cons~n'uetlon Co.
10849 IOnghm'st, Ste 150
Hous~n, TX 77099
UNIT PRICE AMOUNT
$ 54,000.00 S 54,000.00 S
$ 54,000.00 $
Hollomnn Corporation
13730 IH 10 E
Converse, TX 78109
UNIT PRICE AMOUNT
77,103.00 $ 77,103,00
77,103.00
ADDITIVE ALTERNAT~ 2
AA-2. 51ant~:l (liffing-tyge) algae covers for
elarifler troughs (1160 LF) for Clarifie~
B~ins No. 2 and No. 4
TOTAL ADDITIVE ALTERNATE 2:
1 LS
$ 180,000,00 $ 180,000.00 $ 108,000.00 $ 108,000.00
$ 180,000.00 $ 108,000.00
154,205.00 $ 154,205.00
154,20~.00
ADDITIVE ALTERNATE 3
AA-3. Slanted (lifting-type) alga~ c~ver; for
clarifie~ trougl~ 0740 LF) for Cl~ficr
Bn.~ins No. 2, No. 3, and No. 4
TOTAL ADDrrlv~ ALTERNATE
$ 270,000,00
$
$ 270,000.00 $ 161,000.00 $ 161,000.00 $
270,000.00 $ 161,000.00 $
231,309.00 $ 231,309,00
231,309.00
TABULATION OF BIDS
DEPARTNIENT OF ENGENEERING - CIT'Y OF CORPUS CFIRISTI
TABULATED BY: 'Angel IL Escobar, P.E. Director of Engineerllag Services
DATE: June 9, 2004 TIME OF COMPLETION:
BASE BID A - 240 Calendar Days
BASE BID B - 300 Calendar Days
BASE BID C - ~o0 Calendar Days
ENGINEER'S ESTIMATE: $2,,305,~00
O~o Water Reclmnatiou Plant
Clarifler 2, 3, and 4 Structural Improvements
DESCRrPTION
BASE BID A
A-I. Mohi[~zaficm/D~mobilization for ~
~ ~ ~ne ~ Cl~fi~ B~ No. 4
A-2. B~ ~w~n~ sludge ~oval ~d
~ for work ~ ~ done on
Cl~fi~ B~ No. 4
~v~ ~ ~ipm~t ~ ~d
i~on ~ f~ ~ ~ ~ done ~
CI~ B~ No, 4
A~. R~e~d~l~ m~ 1
~ h~ ~p ~v~i~ su~
(4x4~/4" ~e & 2~/8" b~) for
No.4
A-5. C~ ~gPol~e 450
~j~ (~ 450 LF) for
w~ ~ ~ ~ne on Cl~fi~ B~ No.
TOT~ B~E B~ A ~ A-1 ~U
QTY, UNIT
! LS
700 CY
LS
LF
Ca]un Constructors
PO Box 104
Baton Rouge, LA 70821
UNIT PRICE AMOUNT
$ 42,000.00 $ 42,000,00
$ 113.00 $ 79,100.00
$ 676~00.00 $ 676~0~.00
$ 20,000.00 $ 20,000.00
$ 45.00 $ 21,600,00
S 8.~9,000.00
Page 9 of 12
TABULATION OF BIDS
DEPAR'rM~NT OF ENG]]NEER.[NG - CITY' OF CORPUS CHRISTI
TABULATED BY: 'Angel IL Escobar, P.E., Director of Eagine~ring Servieu
DATE: June 9~ 2004 ~ OF COMPLETION:
RASE BID A - 240 Calends- Dey~
BA~E BID B - ~ Cale~dar Dzys
BASE BH) C - 360 Calendm- Daya
ENGINEER'S ESTIMATE: S2~05,800
Oan Water Reclamation Plant
Clartfler 2, 3, and 4 Structural lmprovement~
DESCKHrHON QTY. UNIT
BASE BID B
B-I. Mobilization/Demobiliza6on for ~rk I LS
to be done on Cl~'ifier Bazins No, 2
and No. 4
B-2, Basin dews. texing, sludge removal and 1400 CY
clLvpam] for work to be done on
Clm'i~fier Basir~ No. 2 and No. 4
B-3. Removal and ~-plaaement or t~veling I LS
b~idgc for z~c~ngular clarificr,
n:m~Vld cost, equipment cost, and
iastalJa6on cost for ~c~rk to b~ done on
ClarLficx Basins No. 2 and No. 4
B-4. R~mov¢ and x~plac~ 1~ougb suppom I LS
(4x4x3/4~ fr~tn¢ & 2x2x.3/8~ brace) for
work to be done on Clarifier Basin
B-~. Concrete repair using Poty~eth~e 900 LF
Injection (~,~xima~l¥ 900 LF) for
work to be done o~ Clarifier Basins
No. 2 and No. 4
Caj~ Couztructors
PO Box 104
Baton Rou~e, LA 70821
UNIT PRICE ~JVIOUNT
$ 84,000.00 $ g4,000.O0
$ 113.00 $ 158,200.00
$ 1,310,300.0o $ {f, io2oo.oo
$ 45.00 S 40,500.00
Page 10 of 12
TABULATION OF BIDS
DEPARTMENT OF ENGINEERING - CITY OF CORPUS CHRISTI
TABULATED BY: 'Angel IL Escobar, P.E., Direc~r of Engineering Services
DATE: June 9, 2004 TIME OF COMELETION:
BASE BID A - ~40 Calendar Days
BASE BH) B - 300 Calendar Days
, BASE Bll) C - 360 Calendar Days
ENGINEER'S ESTIMATE:
O~o Water Reclamation Plant
Clariller 2, 3, a~d 4 S~a-uctural Improvement~
DESCRI~HON
BASE BID C
C-I. Mobiliz~ionfDem~ilL~tion for
~o be done on C]~fi~ B~ins No. 2,
No. 3, ~d No. 4
C-2. ~for~doneon
Cl~fi~ B~ ~. 2, No, 3, ~d
4
C-3. ~ f~ ~1~ cl~fi~,
~oval ~ ~i~t ~ ~d
~on ~ for work m ~ done on
~fi~ B~No. 2, No. 3, ~dNo.
4
(4x4~/4~ ~e & 2~/~~ ~ce) for
wo& m ~ d~e on Cl~fi~ B~in
No.4
~j~on (a~ly 1350 ~) for
wo~ ~ ~ ~ne on Cl~er B~i~
No. 2, No. 3, ~d No. 4
QTY, UNIT
1 LS
2100 CY
! LS
1 LS
1350 LF
Cajun Cons'a-uc~ors
PO Box 104
Baton Rouge~ LA 70821
UNIT PRICE AMOUNT
$ 124,000.00$ 124,000.00
113.00 $ 237j00.00
$ 1,939,950.00 $ 1,939,950.00
$ 60,000.00 $ 60.000.00
$ 45,00 $ 60,750.00
$ 2,422,000.00
Page 11 of 12
TABULATION OF BIDS
DEPARTMENT OF ENGINEERING - CITY OF CORPUS CHRISTI
TABULATED BY: 'Angel P~ Escobar. P.E., Director of Engi~eering Services
DATE: June 9, 2004 ~ OF COMPLETION:
BASE BI]) A - 240 C~]end~' Days
BASE BID B - 300 Cal~dar Days
BASE BID C - ~ C~lend~r D~ys
ENGINEER'S ESTIMATE: $"2,305,800
O~o Water Reclama~ou Haut
CIm'fl]er 2, 3, and 4 SWuctm-al Impruvement~
DESCRIPTION QTY. UNIT
ADDITIV~ ALTERNATE 1
Slanted (lifljng-Vype) algae c~¥e~ for I LS
cl~rifl~ Uoughs (~80 LF) f~ Cl~fi~
B~ No. 4
~ ~DITI~ ~A~ 1:
Ca{un Co~cmr~
PO Box 104
Baton Rouge, LA 7~i21
UNIT PRICE AMOUNT
$ 55,000.00 $ 55,000.00
$ 55,000.00
1 LS
$ 110,000.00 $ 110,000.00
$ 110,000.00
ADDIIiVE ALTERNATE 3
Shmte~ 01ffing-ty~) alg~ c. ov~r~ for
¢l~ifi~r tmughz (1740 LF) for Clafifier
Bs~h~ No. 2, No. ~, and No. 4
TOTAL ADDITIVE ALTEI~NATE 3:
1 LS
$ 165,000.00 $ 165,000.00
$ 165,00~,00
Page 11 of 12
\ Mproject \ cou ncilexhibits \ exh 7 2 71. dwg
N
NUECES BAY
CORPUS CHRIET1 BAY
PROJECT LOCATION
LAGUNA
MADRE
GULF OF
MEXICO
LOCATION Ii,AP
NOT TO SC-.4LE
PROJECT No. 7271
EXHIBIT "D"
CITY COUNCIL EXHIBIT
080 WATER REOLAItATION PLANT OLARIFIER ~ o~ ~,~ ~
2, 3 AND 4 STRUCTURAL II~PROVEMENTS PAGE: I ol= 1
CITY OF COPd:q.~ CHRISTI, TEX4,S DATE: 06/17/2004
7
AGENDA MEMORANDUM
DATE: June 22, 2004
SUBJECT: RTA Intedocal Agreement for Street Improvement
AGENDA ITEM:
Ordinance appropriating $500,000.00 into the Street CIP Fund No. 3530 from the Regional
Transportation Authority for the RTA 2004 Special Projects Program, increasing Fund 3530
appropriations by $500,000.00; and declaring an emergency.
ISSUES: Appropriation for the RTA Special Projects Program is necessary before any
expenditure of the funds can occur.
RECOMMENDATION: Approval of the ordinance as presented.
. /,wz
Ar~el R. Escobar, P.E.
Di~ctor- Engineering Services
Attachments:
Exhibit A - AddlUonal In[ormaUon
Exhibit B - NotiflcaUon of Additional Fundin§
H :V-IOM E'~,EVIN S\GE N~TA'~;'d2004 ~-~004~ Memo .doc
ADDITIONAL INFORMATION
BACKGROUND: RTA provides funding for general purpose street improvements and RTA special
projects. The general purpose street improvement program funds are appropdated in the General
Fund as part of the annual budget process. The RTA special project funds are appropriated into the
Stx'eet ClP Fund to ensure expenditures are made for RTA projects and the funds do not fall to the
fund balance at the end of the fiscal year. The funding level is set each year by the negotiation
between the City Manager and RTA Executive Director.
AGREEMENTS: The format of the current agreement with the Street Improvement Fund began in
1999. The City and RTA operated under a 1985 agreement until 1991. The 1985 agreement
provided for the RTA to pay the City an amount for certain transportation-related purposes. The
amount paid was adjusted by the inflation rate each year. Dudng December, 1991, the RTA Board
established two funds to benefit all cities in the RTA service area.
The 1991 Street Improvement Fund continued the payment for certain transportation-related
purposes. The proceeds of the second fund ('Transportation Assistance Fund)was used bythe City
of Corpus Chdsti to defray the cost of Emergency Medical transportation until 1999.
AGREEMENT SUMMARY: The 1985 agreement was not terminated by the current inter-local
agreement. The 1985 Inter-local agreement remains in full force and effect should the current inter-
local agreement not be renewed in the future. The agreement allov~ both the RTA and City to
identify particular projects being funded through the Program well in advance, and enable the RTA
to increase the overall amount available for the new Street Improvement Fund as part of its
operating budget,
The RTA General Manager and City Manager work together each year to develop a final list of
projects to be funded by the RTA. RTA allocates a percentage of its sales tax receipts to fund the
new Street Improvement Program.
Other major points of the agreement are:
· the RTA and City may enter into other agreements for street improvements or other
transportation related projects o[ mutual interest outside the terms of this inter-local
agreement;
· the RTA may directJy pay the City, reimburse the City, or to directly contract for project
depending on whichever alternative is deemed most convenient or efficient;
· the City will report to RTA within ninety (90) days following the end of each year of the
agreement a beef report of funds received, fund expended for each project, and the status of
any project not completed;
· the term of the agreement is for one year, and is subject to automatic ~enewal; and
· termination of the agreement is subject to notification to the other pady ninety (90) days in
advance of termination,
Exhibit A
Page I oi' 1
NOTIFICATION OF ADDITIONAL FUNDING
(Street Improvement Fund)
The Reg/onal Tmns~rtation Authority in Corpus Christi, Texas ("RTA"), a melxopolitan
txansit authority operating under Chapter 451 of the Texas Transportation Code, and the City of
COrpus Chrksfi, Texas C'City"), a municipal corporation, have entered into an Interloeal
Agreement providinE funding by the RTA to the City for a Street Improvement Pvogmm~
The RTA has allocated the amount of $1,458,955.00 for it~ fiscal year 2004 uader the
eximqnE Interlocal Agreement. This amount includes $958,955.00 ia the general purpose slxeet
improvement progs~ua and $500,000.00 for the special projoets program.
All terms and conditions of the Interlocal Agreement shall continue in full force and
effect and apply to this additional funding.
DATEDthi~ ~ dayof ~)Vfg~ ,2004.
R OIO.
ACCEPTED:
CITY OF CORPUS CHRISTI, TEXAS
Exhibit B
. Page I of 1
ORDINANCE
APPROPRIATING $500,000 INTO THE STREET CAPITAL
IMPROVEMENT PROGRAM FUND NO. 3530 FROM THE
REGIONAL TRANSPORTATION AUTHORITY (RTA) FOR THE
RTA 2004 SPECIAL PROJECTS PROGRAM; AMENDING FY
2003-2004 CAPITAL BUDGET ADOPTED BY ORDINANCE
025647 TO INCREASE FUND 3530 APPROPRIATIONS BY
$500,000; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CI'I-Y COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That $500,000 from the Regional Transportation Authority (RTA) is
appropriated into the Street Capital Improvement Fund No. 3530 for the RTA
2000 Special Projects Program.
SECTION 2. That FY 2003-2004 Capital Budget adopted by Ordinance No
025647 is amended to increase Fund 3530 appropriations by $500,000.
SECTION 3. 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
day of ,2004.
ATTEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
APPROVED: ~'~-'~,~-- ! '7 ,2004
/J}Shn P. Burke, Jr. /
/Assistant City Attorney '
'" For ~lb/Attorney
Samuel L. Neal, Jr.
Mayor
Lat~ne~J ohnl~ u rkc\Or(linm nccR~s\cip [or
Corpus Christi, Texas
Day of
,2004
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Chnsti, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance an
emergency exists requiring suspension of the Charter rule as to consideration and
voting upon ordinances at two regular meetings: I/we, therefore, request that you
suspend said Charter rule and pass this ordinance finally on the date it is introduced, or
at the present meeting of the City Council.
Respectfully,
Respectfully,
Samuel L. Neal, Jr., Mayor
City of Corpus Chdsti
Council Members
The above ordinance was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
8
CITY COUNCIL
AGENDA MEMORANDUM
I
City Council Action Dale: ]uae 22. 2004
AGENDA Fl'EM: Resolution authorizing the reaale ora foreclosed property loc~,nt st 3942 Marlin
for failure to pay ad valorem taxes. Amount of bid for the resale is $7,01X).00 of which the City or'
Corpus Christi is to r~_4ve $3,454.43.
ISSUE: Propextie~ located in the City of Corpus Christi am periodically foreclosed by Nuoce~ Coumy
to collect delinquent taxes. Section 34.05 of the Property Tax Code requires that the governing body
of the respective tazdng eutifies approve the resale of this property. Approval of this Resolution will
authorize the Nuecea County Judge to execute a resale d_~t__ for the property.
REQUIRED COUNCIL ACTION: Approval of proposed ~lufion authorifing the resale of the
listed pmpervj.
RECOMMF. NDATION: Staffrecommeads that City Council approve the proposed Rec, olmion in
orde~ to place the property back on the tax roll.
Director of Finandal Services
Altachrmmta: Background Information
Atta¢lunent 3.
BACKGROUND INFORMATION
Properties witlfin the City of Corpus Christi are periodically foreclosed due to non-payment of ad
valorem taxes. The law firm of Linebarger, Goggan, Blair, & Sampson, L.L.P. is proposing the
resale of the listed property for $7,000.00. The monies received fi.om this sale will be distributed
pursuant to the property tax code. The net proceeds from the sale are first applied to pay off the
outstanding court costs, and the remaining funds are applied on a pro rata basis to each taxing
jurisdiction. The City of Corpus Christi is expected to receive $3,454.43 from the sale. Approval of
the ordinance will authorize the Nueces County Judge to execute a Resale Deed for the property. If
sold, the property will be returned to the tax roll for the upcoming year.
ATTACHMENT A
ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY
Suit Number & Style:
Tax ID~ & Legal:
Property Locaflon:
96-4849-F; Nueces County vs. Ethel Marie Askey
0772-0002-0060; Lot 6, Block 2, Blue Water
Subdivision
3942 Marlin - Corpus Christi
Date of Sale:
Amount Due All Entities:
Amount of Bid:
Cost of Sale:
Current Value:
% of Total Due:
% of Current Value:
August23,2000
7,516.35
7,000_00
405.00
10,910.00
93.13%
64.16%
Entity Name
Nueces Coun~
Amount Due
Each EnUty
977.49
Amount You
Will Receive
857.67
City of Corpus Chdsti
Flour Bluff Independent School District
Del Mar College
City Paving & Demo Liens
981.43 861.13
2,282.41 2,002.63
319.42 280.27
2,955.60 2,593.30
RESIDENTIAL LOT, APPROXIMATELY IO0' X 125' LOCATED 1,/2 BLOCK WEST OF
THE LAGUNA SHORES/YORKTOWN INTERSECTION
THE PROSPECTIVE PURCHASER IS GAUDENCIA MOLINA, JR. OF HOUSTON
615
~, I~HITELEy
K~NG R4NCH
DRIVE
DRIVE
SYOtqKTOWN
RESOLUTION
AUTHORIZING THE RESALE OF ONE FORECLOSED PROPERTY
LOCATED AT 3942 MARLIN WHICH WAS FORECLOSED UPON FOR
FAILURE TO PAY AD VALOREM TAXES FOR $7,000; AND
DECLARING AN EMERGENCY.
WHEREAS, the taxing authorities hold in trust the property located at 3942 Marlin;
WHEREAS, the taxing authorities desire to obtain the best possible price for the
property and return this property to the tax rolls.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. As the governing body of the City of Corpus Christi, the City Council
authorizes the resale of the property located at 3942 Marlin, Corpus Christi, Texas
which was foreclosed upon the failure to pay ad valorem taxes, for $7,000. The
analysis of the bid received for tax resale property is attached to and incorporated into
this resolution as Attachment A. A tax map showing the location of the property is
attached to and incorporated into this resolution as Attachment B.
SECTION 2. That the Nueces County Judge is authorized to execute a resale deed
upon payment to the City of the City's share of the tax resale proceeds.
ATrEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
APPROVED: 17th day of June, 2004.
FR2s~isint ~inntg C'~Atto m ey
For City Attomey
Samuel L. Neal, Jr.
Mayor
R44111Al.doc
Corpus Chdsti, Texas
of ,2004
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Gan-eft
Bill Kelly
Rex A_ Kinnison
Jesse Noyola
Mark Scott
2
R44111Al.doc
ATTACHMENT A
ANALYSIS OF BID RECEIVED FOR TAX RESALE PROPERTY
Suit Number & Style:
Tax ID//& Legal:
Property LocaUon:
96-4849-F; Nuecea County vs. E~el Made Askey
0772-0002-0060; Lot 6, Block 2, Blue Water
Subdivision
3942 Marlin - Corpus Christi
Date of Sale:
Amount Due All Entities:
Amount of Bid:
Cost of Sale:
Current Value:
% of Total Due:
% of Current Value:
August 23, 2000
7,516.35
7,000.00
405.00
10,910.00
93.13%
64_16%
Entity Name
Nueces County
Amount Due
Each Entity
977.49
Amount You
Will Receive
857.67
City of Corpus Christi
Flour Bluff Independent School District
Del Mar College
City Paving & Demo Liens
981.43 861.13
2,282.41 2,002.63
319.42 280.27
2;955.60 2,593.30
RESIDENTIAL L 0 T, APPROXIMA TEL Y 100' X 125' L OCA TED 1/2 BLOCK WES T OF
THE LA G UNA SHORES/YORKTO WN INTERSECTION
THE PROSPECTIVE PURCHASER IS GAUDENCIA MOLINA, JR. OF HOUSTON
615
9
CITY COUNCIL
AGENDA MEMORANDUM
June 10,2004
AGENDA ITEM: Ordinance abandoning and vacating a 3,155-square foot portion ora 20-
foot wide utility easement out of Block B-2B, Cullen Place; requiring the owner, Dr. Ronald
Kuffel, Jr., to comply with the specified conditions and replat the property within 180 days
at owner's expense; and declaring an emergency.
ISSUE: The property owner is requesting the abandonment and vacation of the utility
easement to accommodate the future construction of a medical office complex over the
existing 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 his
expense.
RECOMMENDATION: Staff recommends approval of the ordinance as presented on an
emergency basis.
Dir~cto~ of D~ I~opment Services
Attachments:
Exhibit A - Background Information
Exhibit B - Ordinance
Exhibit C - Site Location Map
AGENDA MEMORANDUM
ADDITIONAL BACKGROUND INFORMATION
PURPOSE OF CLOSURE AND BACKGROUND:
LNV Engineering, on behalf of Dr. Ronald Kuffel, Jr.. is requesting the abandonment and
vacation of a 3,155-square foot portion of a 20-foot wide utility easement in Block B-2B,
Cullen Place in order to accommodate the future construction of a Medical Office complex
that will cover all/or portions of the existing utility easement. The easement to be
abandoned and vacated is located in a "B-1" Neighborhood Business District.
All public and franchised utilities were contacted regarding the vacating and abandonment
of the utility easement. The Wa[er Department has an existing 8" water line that will have
to be relocated at Owner's expense. Water Department requires that Owner widen the
existing 5' utility easement located on the east property line of Block B-2B, from 5' to 10' by
dedicating an additional 5' to the existing easement and keeping the existing 5' plant strip
to the west and outside of the new dedicated 10' utility easement. The Wastewater
Department has an existing 8" sanitary sewer line in the easement to be abandoned that
will have to be grout-filled, and relocated at owner's expense. Wastewater Department
also requires that owner submit construction plans prior to commencing construction of the
new wastewater line for Wastewater Department's approval. AEP, had no objections, but
will seek reimbursement if adjustments to their facilities become necessary. None of the
other city departments and franchised utility companies had any facilities within the
easement or any objections to the easement being vacated and abandoned.
Staff recommends that payment of the fair market value be waived because Owner will be
dedicating a utility easement of greater area to off-set the proposed abandonment. The
owner has been advised of and concurs with the conditions of the easement abandonment.
EXHIBIT A
FROM: B.A. Bailey, AICP, Director of Development Services
DATE: June 14, 2004
TO THE CITY MANAGER OF THE crrY OF CORPUS CHRISTI:
ORDINANCE REQUEST
DATE RECOMMENDED FOR COUNCIL ACTION: June 22, 2004
ORDINANCE CAPTION:
Abandoning and vacating a 3,155-square foot podion of a 20-foot wide utility easement out of Block B-2B, Cullen Place;
requiring the owner, Dr. Ronald Kuffel, Jr, to comply with the specified conditions and replet the property within 180 days at
owner's expense; and declaring an emergency,
OTHER PERTINENT INFORMATION TO BE INCLUDED IN ORDINANCE:
Plat is recorded in Volume 26, Page 5, of the Map Records of Nuecas County, Texas.
SPECIFIED CONDITIONS AS PART OF CLOSURE:
1 ) Fair Market Value will be waived because Owner will be dedicating a utility easement of greater value to
off-set the proposed vacation and abandonment of the easement.
2) Owner must grout-fill existing 8" sanitary sewer line and relocate sanitary sewer line at Owner's expense.
Owner must submit construction plans of the wastewater line to be relocated prior to sled of construction
I'or approval.
3) Owner must relocate existing 8" water line within the easement to be vacated and abandoned, at Owner's
expense.
4) Owner must dedicate a 20-foot wide utility easement along the southern edge of Block B-2B, within the 20'
Y.R. (building line), until it meets the existing 5-foot utility easement located on the east property line
Block 2-2B.
5) Owner must widen the existing 5' utility easement located on the east property line of Block 2-2B, from 5'
to 10' by dedicating an additional 5' lo the existing easement.
6) Owner is to relocate the existing 5' plant sLdp located on the east property line of Block B-2B, to the west
and outside of the existing 5' utility easement and the additional 5' utility easement to be dedicated,
located along the easl property line of Block B-2B.
7) AEP, will seek reimbursement ii: adjustments to their facilities become necessary.
8) The Owner must replat the portion of Block B-2B, Cullen Place, showing utility easement vacate and
abandonment and dedication within 180 days at Owner's expense.
APPROVED:
~or of Development Services
DATE: EXHIBIT B
AN ORDINANCE
ABANDONING AND VACATING A 3,155-SQUARE FOOT PORTION OF
A 20-FOOT VVlDE UTILITY EASEMENT OUT OF BLOCK B-2B,
CULLEN PLACE; REQUIRING THE OWNER, DR. RONALD KUFFEL,
JR., 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 3,155-square foot portion of a 20-foot wide utility easement out of
Block B-2B, Cullen Place, as recorded in Volume 26, Page 5, Map Records Nueces
County, Texas, that the owner, Dr. Ronald Kuffel, Jr., (Owner), wishes to have
abandoned and vacated; and
WHEREAS, it has been determined that it is ~'easible 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 3,155-square foot portion of a 20-foot wide utility easement out of
Block B-2B Cullen Place, as recorded in Volume 26, Page 5, Map Records Nueces
County, Texas is abandoned and vacated for public use as utility easement, subject to
Owner's compliance with the following specified conditions as part of the abandonment
and vacation:
Payment of the fair market value will be waived because Owner will be
dedicating a utility easement of greater value to offset the proposed vacation and
abandonment.
Owner must grout-fill the existing 8-inch sanitary sewer line and relocate the
sanitary sewer line at its expense. Owner must submit construction plans of the
sanitary sewer line to be relocated prior to commencing construction for
Wastewater Department approval.
3,
Owner must relocate the existing 8-inch water line within the easement to be
abandoned and vacated at its expense.
Owner must dedicate the 20-foot wide utility easement along the southern edge
of Block B-2B, within the 20-foot Y.R. (building line), until it meets the existing 5-
foot utility easement located on the east property line of Block B-2B.
Owner must widen the existing 5-foot utility easement located on the east
property line of Block B-2B, from 5 foot to 10 foot by dedicating an additional 5
foot to the existing easement.
H:\LEG-DIR\SharedXJOSEPH~ORDd2ullenPlace.061604DC,Revised.doc
Owner is to relocate the existing 5-foot plant strip located on the east property
line of Block B-2B, to the west and outside of the existing 5-foot utility easement
and the additional 5-foot utility easement to be dedicated, located along the east
property line of Block B-2B.
7. AEP will seek reimbursement if adjustments to their facilities become necessary.
That the Owner replat the portions of Block B-2B, Cullen Place, being abandoned
and vacated, showing the easements abandoned and vacated and the additional
easements dedicated, 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 22nd day of June, 2004.
ATrEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Samuel L. Neal, Jr.
Mayor
Approved June 16, 2004
~ssistant City Attorney
For City Attorney
H:~LEG-DIR\Shared~IOSEPH~ORD42ulIenPIace.061604DC.Revised.doc
Corpus Christi, Texas
day of ,2004
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance, an
emergency exists requiring suspension of the Charter rule as to consideration and
voting upon ordinances at two regular meetings: lANe, therefore, request that you
suspend said Charter rule and pass this ordinance finally on the date it is introduced, or
at the present meeting of the City Council.
Respectfully, Respectfully,
Samuel L. Neal, Jr., Mayor
City of Corpus Christi
Council Members
The above ordinance was passed by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garret[
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
H:\LEG-DIR\SharedLIOSEPI-EORD-CulIenPIace.061604DC.Revised.doc
CULLEN PLACE
BLOCK B-2B
SITE LOCATION
CORPUS CHR
BAY
Pork
~ S T I
Polme([o
Pork
Poenlsch
Pork
St Andr
ork
Mt Vernon
Pork
Rid g e wood"~
Pork
Oso Municipal
Gui Course
LNV ENGINEERING
Pork
~ EXHIBIT C
CULLEN PLACE
VICINTY MAP
r~
0
40'
W
279.58'
20' U.E.
CURVE TABLE
LEGEND
20' U.E, TO BI= CLOSED
(Appm)~ 3.155 SQ. FT.)
20' U.E, TO BE DEDICATED
(Approx. 4,574 SQ. FT.)
5' U.E. TO BE DEBICATED
(Approx. 1,830 SQ.FT.)
253.45'
BLOCK B-2B
2O.O' U.E.
TO BE A
(i3,155 SQ_ Fl'.)
No. Delta Radius Arc Chord
Cl go'07'Ol" 30.00' 47.19' 42.47' N42"26'02"W 30.06'
C2 10'58'31" 486.30' 93.15' 93.01' N82'OS'O6'W 46.72'
C3 16'29'44" 486.30' 140.01' 139.52' N68'20'sg'w 70.49'
C4 08'18'06" 2546.93' 369.03' 368.71' S21'44'10"W 184.8.3'
20'
Chord Beonn~ Tongent '~/'"
U.E~
PROP 5.0' U.E.
TO BE DEDICATED
(+l,~O SO. FT.)
I.R. = Iron Rod
I.zP. = iron Pipe
= Cen~edine
U.E. = Ulility Eosern~n[
Y.R. = Yord Requirement
LNV ENGINEERING
EXHIBIT C
BLOCK B-2B, CULLEN PLACE
EASEMENT CLOSURE
10
CITY COUNCIL
AGENDA MEMORANDUM
PRESENTATION
AGENDA ITEM: Padre Island Desalination Plant Feasibility Analysis and Siting Plan -
Stage 1 Findings and Recommendations
STAFF PRESENTER(S):
Name
1. Ronald F. Massey
2, 'Angel R. Escobar, P.E.
3. Eduardo Garana, P.E.
Title/Position
Asst. City Manager
Director
Director
Department
Public Works
Engineering Svcs,
Water Dept.
OUTSIDE PRESENTER(S):
Name
John S, Heckler, P.E,
Title/Position
Partner in Charge
Or~lanlzatlon
Carollo Engineers
ISSUE: Potable water service on Padre Island will be improved by the addition of
desalination and storage facilities to meet the increasing water demands of this
service area. This briefing provides a summary of the Assessment Phase findings
and recommendations to the City.
Eduardo Garafla, P.E.
Director of Water Services
~r/ng~l R. Escobar, P. E.,
Director of Engineering Services
Attached Support Materials:
Exhibit "A" Project Status Briefing
Exhibit "B" PowerPoint Presentation
Padre Island DesallnaUon Plant
Feasibility Analysis and Siting Plan (proJect No. 8423)
Presentation to City Council. June 22, 2004
Exhibit "A" - Project Status Briefing
INTRODUCTION
The Can)Ilo Team presented findings and recommendations pertaining to Stage 1, Phase I of the
Padre Island Desalination Plant Feasibility Analysis and Siting Plan to City Council in June 2003.
Based on lhe findings and recommendations presented, Council authorized the Carollo Team to
proceed with work on Stage 1, Phase 2 of the Padre Island Desalination Plant Feasibility Analysis
and Siting Plan in August 2003. The Carello Team presented emerging results and
recommendations to Council on March 30, 2004
Goals of the project included improving service and identifying the most cost effective long-term
water supply option for the Padre Island Service Area. The Team has focused on identifying both
facilities needed to Improve water service within the Padre Island service area, as well as long-term
water supply alternatives to accommodate anticipated growth in the service area. These facilities
generally can be categorized by type of improvement (water supply facilities, storage facilities, and
pumping and distdbution system improvements), and by planning horizon (shod-term, near-term,
and long-term). Improving water service on the Island has been a critical focus of the team in the
shod-term. Council was presented with recommendations for shod-term improvements on the
Island at the March 30, 2004 council presentation. These shod-term improvements are currently
being implemented, and the team has shiCted its focus to facilities needed as pad of near-term
improvements and on long-term water supply solutions (Figure 1 ).
The purpose of this bdefing is to update Council on study findings and to provide recommendations
for implementation of near-term improvements. Additional recommendations are provided
concerning long-term solutions.
REVIEW OF AUTHORIZED WORK
The Carollo Team presented Phase I findings and recommendations to the Council in June 2003.
The recommended project consisted of 1.0 mgd of reverse osmosis (RO) capacity, 2.0 mgd of
aquifer storage and recovery (ASR) capacity, and appurtenant facilities including RO source wells,
by-product disposal, and pump station and piping improvements. Estimated cost of these facilities
was $23.2 million.
EXHIBIT"A"
Page 1 of 23
Evaluation
.ii
Implementation
/~, Padre Island P.S. Improvements
Disn-ibution Piping Improvements
ASR Initial Production
"~ Pump Station Storage
~ Elevated Storage &Transmission
Improvement Flow Chart
Laguna Madre Trm-mmission Line
[ ~ RO Pilot Plant?
~ Additional Supply Decision
Milestone Decision
Jtme 2006
Figure 1 - Improvement Flow Chart
EXHIBIT "A'
Page 2 of 23
Based on the Phase 1 findings and recommendations, Council authorized the Carollo Team to
proceed with work on Stage 1, Phase 2 of the Padre Island Desalination Plant Feasibility Analysis
and Siting Plan in August 2003. This work included the [ollowlng tasks:
Validation Studies, including a
test hole program to validate
ASR I~easibility and RO
treatability.
· Population and Water
Demands Analyses
Hydraulic Modeling of the
North Padre Island Service
Area.
Water Supply Altematives
Evaluation, including
alternative Laguna Madre
Pipeline Crossings.
· Padre Island Pump Station
Evaluation
· RO Pilot Plant Evaluation
· Detailed Facilities Design
· Suppoding activities including
permitting and right-or-way ..
acquisition.
Discussion of the status of these
aclivlties follows.
Figure 2 - Validation Study Test Well Drilling at
Padre Island Pumo Station
Validation Study: The pdmary purpose of the Validation Study Is to confirm certain information used
in development of the Recommended Project presented to Council in June 2003. One of the most
signit~cant pads of the validation study is the completion of hydrologic field investigations to confirm
ASR I~easibility and obtain water quality data to refine RO treatment costs.
Currently, two bodngs, a test well, a step test, and a 24-hour pump test have been completed
(Figure 2). This podlon of the validation study has produced several key conclusions, including:
· The Chicot Aquifer appears to extend continuously under the Island from near the Kleberg
Counly Line to the Mustang Island Fire Station Site.
EXHIBIT"A"
Page 3 of 23
Overall productivity of the Chicot Aquifer is consistent with information developed In the
Assessment Phase of the project. In general, sands within the Chicot are two to three times
thicker than previous studies indicated, but b'ansmissivities are slightly lower.
Reliable information has been developed for most aquifer hydraulic properties; fur[her, final
dala required for cons[ruction of the flint test well is being developed as part of the ASR pre-
design process currently underway.
· Subsidence is a potential issue, but can be addressed by proper well field siting and design
and management of well field drawdown.
· Water quality informalJon has been obtained from the Chicot Aquifer and water quality
impacts on RO treatment costs are now known.
· Maximum ASR capacity on the island, considering aquifer properties, subsidence, and siting
issues, is likely limited to about 10 mgd.
· Maximum RO source well field capacity is likely limited to between 5 and 10 mgd.
Results from the completed test bodngs and test well confirm that ASR is a viable technology, with
an upper total production limit of about 10 mgd imposed by certain hydrogeologic constraints. The
Carollo Team, following approval from City staff, is proceeding with design of the initial ASR
production facilities (2.5 mgd capacity).
The Assessment Phase recommendations presented to Council in June 2003 were based on total
dissolved solids (TDS, a measure of salinity) in the Chicot aquifer in the range of 3,000 to 6,000
milligrams per liter (rog/L). This TDS data was based on information from available well logs.
Preliminary TDS measurements collected during the test hole and test well drilling indicated TDS
levels of about 3,500 mg/L. This increase in TDS would have increased RO treatment costs, but not
to the extent that the economic viability of RO as an alternative water supply would have been
significentiy impacted. However, water quality samples obtained from recently completed pump tests
indicates that TDS is substantially higher than anticipated, with TDS levels exceeding 15,000 mg/L.
This level o[ TDS will increase RO treatment and by-product disposal costs by a factor o[ two to
three. The impact of these increased costs on viability of RO as an altemative water supply are
described in the Water Supply Alternatives section.
Population and Water Demand Proiections: Projections indicate that the future population of North
Padre and Mustang Islands (including the City of Port Aransas) may exceed the previous1997
Master Plan projections by as much as 250% by the Year 2020 (Figure 3). This population increase
is ddven primarily by construction o[ Packery Channel. The development of several new housing
communities may result in over 4,000 new dwelling units on North Padre Island alone. Revised
population projections result in an ultimate population of approximately 52,000 permanent residents
at Year 2050, with 80% of the population located on North Padre Island and 20% from Mustang
Island and Port Aransas.
EXHIBIT "A"
Page 4 of 23
70,000
60,000--
50,000
40,000--
O 30,000
Padre Island Population Projections
- .-~-1997 Master Plan Projections,, ............. ...............
_ ~ Revised Projections I ...... 51,7371
20,000
10,000
/
13,3741 ...... ~
0
1970 1980 1990 2000 2010 2020 2030 2040 2050 2060
Figure 3 - Padre Island Population Projections
EXHIBIT "A"
Page 5 of 23
These population projections have been developed in conjunction with the Ci~s Planning
Department and are being used for Ihese studies as well as for the Mustang-Padre Island Area
Development Plan, prepared by the City Planning Department.
Previous water demand estimates used a demand of 125 gallons per capita per day (gpcd). These
pdor eslimatas were developed based on overall City population and water production records.
Demand estimates completed as part of this study were developed based on an evaluation of
historical billing records from the Island to identify a per capita demand that would best represent
actual water demand patterns on the Islands. This analysis resulted in an estimated per capita
demand of 200 gpcd for the Island service area. These demand projections implicitly account for
water demands from short-term residents and toudsm on within the service area.
Carollo's demand analysis, using the revised population projections, historical service area per
capita demands, and TCEQ design cdteda, result in maximum day demands approximately 315%
higher than 1997 estimates (Figure 4). Revised peak hour demands are estimated to be
approximately 300% higher than 1997 estimates (Figure 5).
Hydraulic Modelinq: To date, hydraulic modeling efforts have been utilized to:
1. Develop Padre Island Pump Station improvements;
2. Identify and size distribution system improvements; and
3. Site and size additional water supply altematives, especially ASR facilities and elevated
storage facilities.
Work performed as part of this task has been closely integrated with modeling erforts associated
with development of a new City-wide wa[er distribution system model.
Water Supply Alternatives Evaluation: This task consists of identification and evaluation of wa~er
supply alternatives for North Padre Island. The Carollo Team identified nearly 300 dirferent
altemative configurations, dependent on selection and sizing of water supply components, routing,
and hydraulic operational strategy for the Island service area.
Five key conclusions can be drawn based on the analyses to date:
Altematives that continue to supply peak hour demands to the Island service area [rom the
mainland are substantially more capital-intensive (by approximately $65 million) as
compared to establishing a separate service zone for the Island service area. In
comparison, present worth of anticipated additional pumping costs over a 50 year project life
associated wilh conversion or the Island to a separate service zone are less than $10
million.
If RO source water could be obtained at TDS levels of 3,000 to 3,500 mg/L, alternatives
which incorporate bolh ASR and RO as component fadlilJes would be more economical on a
total capital cost basis than "pipeline-only" or "pipeline and ASR only" alternatives.
EXHIBIT "A"
Page 6 of 23
40.0
~t '-e-1997 Master Plan Demands
35.0 -~- Revised Projections
,..., 30.0 -
me 20.0
E 15.0
.~ 10.0
~ 5.0
0.0
1990 2000 2010 2020 2030 2040 2050 2060
Figure 4 - Padre Island Service Area Projected Maximum Day Demands
70,0 I I r I
- - -~-1997 Master Plan Demands
60.0 -~'Revised Projections (w/out Elevated Storage)
- ' -~- Revised Projections (wi Elevated Storage)
40.0
.~ 30.0 - - - ? [~
· .~ 20.0
~. - 21.2 -- --
lO.O .............
0.0
1990 2000 2010 2020 2030 2040 2050 2060
Figure 5 - Padre Island Service Area Projected Peak Hour Demands
Page 7 of 23
I ..... J
At source water qualib/TDS levels of 15,000 mg/L, 'RO/ASR-only" alternatives are not cost-
competitive wilh other aitematJves, wilh capital cosLs exceeding other alternatives by about
$70 million. Unit cost of a "RO/ASR-only" alternative would exceed other alternatives by
about 86%. When these economic factors are considered with the hydrogeologic limitations
of RO source wells, an "RO/ASR- only" altemative does not appear to bear further
consideration.
The "Pipeline/ASPJRO" combination altemative is reasonably competitive with other
alternalJves on a capital cost basis for RO source water TDS of 15,000 mg/L. However, unit
cost of water for Ihis altemative is approximately 20% higher compared with other
altematives due to RO's opera§onal costs.
"Pipeline-only" and "Pipeline/ASR" alternatives are effectively equivalent from a capital cost
standpoint, but the ASR portion ol" the 'Pipeline/ASR" altemative provides the City with
substantially more flexibility to proportionally respond to increasing demands in the Padre
Island service area.
Table 1 provides a comparison of capital costs for the different alternatives, with RO costs computed
based on TDS levels o[ 15,000 mg/L.
Padre Island Pump Station Evaluation: The Carollo Team was charged with evaluation of the
existing pump station facilib/on North Padre Island to determine what improvements may be
necessary to address near-term water service issues and long-term water demands.
The Carello team has completed a draft evaluation of the existing pump station, including
recommendations for a [wo-phased capacity expansion, designed to address short-term capacity
needs for the summer o[ 2004 (July, August, and September) and near-term requirements through
2010. Council authorized implementation of the Carello recommendations at the June 8, 2004
council meeting, and construction of these improvements is proceeding.
RO Pilot Plant Evaluation: This task is on hold pending completion ol~ the water supply alternatives
evaluation and authorization from Council to proceed with an RO pilot study.
Detailed Facilities Desiqn: The Carollo team has completed design of the proposed pump station
improvements. Design o[the initial ASR [acilities is underway.
RECOMMENDATIONS
Emerging results were presented to Council at the March 30, 2004 council meeting. At that time,
Carollo identified the [ollowing types of improvements thai will be required to accommodate
projected population and water demands on the Islands. These improvements were categorized
both by planning hodzon and by bjpe of improvement, as follows:
EXHIBIT "A"
Page 8 of 23
Table I
Capital Cost Comparison of Water Supply Alternatives
Padre Island Desalination Plant Feasibility Analysis and Siting Plan
City of Corpus Christi, Texas
Water Supply
Alternative
Pipelines Only
Pipelines/ASR
Combination
RO/ASR Combination
Pipeline/RO/ASR
Combination
Notes:
RO
Capacity
(MGD)
0
0
15
2.5
ASR
Capacity
(MGD)
Estimated
Capital Cost
(June 2004
Dollars)
$ 246,112,800
10 $ 247,220,600
10
10
$ 325,314,700
$ 255,982,200
Estimated
Annual O&M
Cost (June
2004 Dollars)
$ 3,755,986
$ 4.540,266
$ 18,335,665
$ 7,066,906
$
$
$
$
Estimated Unit Cost of Water
NCWCID4
Total
($/kgal)
1.41
1.47
2.74
1.67 , $
City Shars Shars
($/kgal) ($/kgel)
$ 1.10 $ 0.31
$ 1.14 $ 0.33
$ 2.13 $ 0.61
1.30 $ 0.37
1. Unit costs based on construction of all facilities simultaneously, without phasing.
2. Project yield based on meeting system peak hour demand capacity (45 mgd).
3. Debt service based on a 30-year amo~zation at 6% interest.
4. NCWClD4 share of unit cost based on provision of 10 mgd capacity to NCWCID4 out of a total system capacity of 45 mgd.
5. Capital costs include a 25%contingency on estimated constTuction cost, and an allowance of 30% of contingencied constTucfion
cost for engineering, legal, and administrative project services.
6. RO costs based on Chicot Aquifer source, TDS=15,000 mg/L.
7. All costs are June 2004 dollars.
EXHIBIT "A" I
Page 9 of 23
Plannin~ Horizon
Shod-Term Improvements - improvements needed to immediately address Summer 2004
(July, August, September) demands within the service area. Implementation of these
improvements will occur during spring and early summer of 2004.
Near-Term Improvements - improvements needed to address near-term demand and need
for service improvements for a planning hodzon of approximately 2010. Implementation of
these Improvements will occur over the next [wo to three yearn.
Long-term Improvements - improvements will need to be implemented in the future
proporlJonal to actual growth in population and water demand on the Island. Depending on
the type o[ facility, planning hodzon may range from 10 to 50 years. Implementation of these
improvements is anticipated to begin sometime after 2008, [ollowing completion of near-term
improvements.
Tvpe of Improvement
· Storage Improvements - consisting of ground and/or elevated storage tanks and ASR.
Transmission Capacity/Water Supply Improvements - consisting of Improvements to the
Southside Transmission Faciti[ies or other mainland transmission facilities, development of
new water sources on the Island, or a combination of both.
· Pump Station and Distribution System Capacity Improvements - consisting of pump
station and distribution system capacity increases on the Island.
Figure I shows a graphical depiction of the improvement categories.
Short-Term Improvements (July, August, September 2004)
Recommended shod-term improvements were presented to Council by Carollo at the March 30,
2004 council meeting. Those shod-term improvements included the following:
Storaqe Improvements: The Carollo Team is proceeding with implementation of the initial 2.5 mgd
ASR production phase.
Increased Transmission Capacib,' to Padre Island: One of the recommendations presented to
Council at the March 31,2004 council meeling was verification o[ size and cost of a second Laguna
Madre Crossing. Recommendations conceming the need for and size of a second Laguna Madre
Crossing are described in the Near-term Improvements section.
Pump Station and Distribution System Capacity Improvements on the Island: Padre Island Pump
Station improvements are necessary due to inadequacy of the existing facilities and conversion or
the service zone from an extension of the mainland Zone 2 to an independent pressure zone.
EXHIBIT "A"
Page 10of23
Original recommendations for pump station improvements presented at the March 30, 2004 council
meelJng included shod-term, temporary modificallons to the existing facilities to increase capacity
and meet expected short-term demands, followed by construction of a larger, permanent facility as a
near-term improvement. Accommodation of certain TCEQ requirements made the proposed
temporary modifications infeasible, and it was instead necessary to immediately implement
permanent facilities. These improvements were approved at the June 8, 2004 council meeting, and
are currently under conslruclJon.
Table 2 summarizes the status of recommended short-tarm improvements.
To Lake full advantage o[ the increased pumping capacity, pump station improvements will need to
be accompanied by near-term improvements to [he Island's water distribution system (described
below in the Pump StalJon and Disthbution System Capacity Improvements on [he Island section
under Near-Term Service Improvements).
Near-Term Service Improvements (Through 2010)
Carollo's recommendations [or near-term service improvements include:
Storacle Improvements: Carollo recommends that additional ASR facilities be implemented
proportional to the actual growth o[ water demands on the Island. This will include additional ASR
production facililJes beyond the initial 2.5 mgd ASR production [acilities (currently under design),
constructed in the near future to accommodate actual increases in water demands on the Island.
Generally, these ASR facililJes should be sited near the Kleberg County Line, and near the Mustang
Island Fire Station site. ASR sites in the vicinity of the Mustang Island Fire Station are preferred for
the ini§al ASR production facilities, as this would assist the City in meeting its water supply
commitments to Nueces County Water Control and Improvement District No. 4 (NCWCID4) through
about 2020, and allow deferred construction of a new parallel pipeline between the existing Padre
Island Pump Station and the NCWCID4 delivery point.
TCEQ has mandated construction o[ elevated storaqe on the Island to comply with state water
system design cdteda. TCEQ's cdtada would require an ultimate minimum volume of about 1.3
million gallons (MG) o[ elevated storage on the Island. This TCEQ-mandatad volume may not be
adequate to provide optimal service on the Island, and a larger ultimate volume should be
considered. Carello recommends lhat elevated storage be implemented in two phases (two tanks),
the first phase consisting of a 1-MG elevated tank located near Park Road 22 between Commodore
Ddve and Whitecap Boulevard. From a technical standpoint, elevated tank locations In this area are
hydraulically optimal; however, there may be other locations that are hydraulically satisfactory but
are more acceptable from a community standpoint. The second phase would consist of a second
tank located generally in the north portion of the Padre Island service area. Volume o[ the second
tank would be at least 300,000 gallons, and may be larger, depending on water use patterns within
the service area. The City should proceed with site acquisition, permitting, design and construction
of the first elevated storage facility.
Page 11 of 23 Jl
Table 2 Summary of Status, Recommended Short-term Improvements
Padre Island Desalination Plant Feasibility Analysis and Siting Plan
City of Corpus Christi, Texas
Facility
Initial ASR Production
Facility
Padre Island Pump Station
Conversion of Padre
Island to separate service
zone
Southside Transmission
System Phase 4
Southside Transmission
System Phase 5
Status
Pre-design underway
Construction underway
Dependent on completion of
improvements at Padre
Island Pump Station
Design nearly complete
Design underway
PerTnitting underway
Laguna Madre Crossing
(Southside Transmission
System Phase 6)
Estimated
Date In
Service
December 31,
2005
September 15,
2004
September 15,
2004
Comments
Site acquisition underway via parallel discussions
with multiple land owners.
Temporary pumping equipment in-service by June
30, 2004, with permanent facilities in-service by
September 15, 2004.
Pending completion of Padre Island Pump Station
Improvements.
Mid-2005
Mid-2006
Mid-2006
Vedfy availability of CIP Programmatic consffuctJon
budget.
Should be in service no later than Mid-2006 to
coordinate with SSTS Phase completion. Verify
availability of programmatic CIP budget for design
and construction.
Design Authorization and programmatic ClP
budgeting needed.
EXHIBIT "A"
Page 12 of 23
Increased Transmission Cal~aci~ to Padre Island: Results o[ the water supply alternatives analysis
indicate Ihat an "RO/ASR only' alternative is not a cost-competitive alternative compared to other
available alternatives. While small-scale RO installations (2.5 mgd or less) may be somewhat
competitive on a capital cost basis with olher water supply alternatives, it Is apparent lhat the
majodty of the long-term water supply to the Island will need to be supplied from the mainland
treatment/transmission/disb-ibution system. Because of the limited capacity of the existing 24-inch
pipeline, an additional crossing of the Laguna Madre is necessary. Carollo recommends
construction o[ a 42-inch crossing. This crossing size will bolster near-term water supply to the
Island and provide the City with substantial additional tiexlbility in the future.
As soon as this pipeline is in service, Carollo recommends that the existing 24-inch pipeline be
evaluated, then rehabilitated or replaced as appropriate. This recommendation is based on the age
and service conditions associated with the existing pipeline.
Based on the projected demands on the Island, the Island will be 'borrowing" capacity in the
Southside transmission system between O.N Stevens WTP and Yorktown/Laguna Shores once
maximum daydemands on the Island exceed 6.7 mgd. In the longer-term, as population and water
demands increase on the mainland, additional transmission system improvements between O.N.
Stevens WTP and Yorktown/Laguna Shores or other water supplies developed on the Islands to
replace this "borrowed" capacity.
Pump Station and Disldbution Svstem Capacity Improvements on the Island: To take full
advantage of the increased pumping capacity at the existing Padre Island Pump Station,
improvements to the island's water distribution system will be necessary. These improvements
will consist of:
A 30-inch diameter pipeline connecting the pump station with the preposed elevated
storage tank, and connecting with the existing distribution system. This pipeline will
ultimately be extended south to near the Kleberg County Line as water demands
increase in the southern portion of the service area.
· A 36-inch pipeline connecting the Laguna Madre pipeline crossing with the existing
ground storage tanks at the Padre Island Pump Station.
Following construction of the pump station improvements described previously, additional
pumping capacity will need to be added via construction of a second pump station facility near
the Kleberg County Line.
Figures 6 and 7 show the effect of these recommended near-term improvements on water
service within the Island service area.
The general location of recommended improvements is shown on Figure 8. The estimated cost
of recommended near-term improvements is summarized In Table 3.
EXHIBIT "A"
Page 13 of 23
35.0
'0 30.0
' 25.0
20.0
15.0
10.0
~ 5.o
0.0
1995
Laguna Madre
Crossing in
Operation
I Initial ASR
L
on-Line I~
Service Zone
Exist. 24-Inch
Capacity --
Capacity U pon
Lose ~
24-inch Line
2000 2005 2010 2015 2020 2025
Keeping up with Max Day Demand
Figure 6 4mpact of Recommended Near-term Improvements on Maximum Day Demand
EXHIBIT "A" 1
Page 14 of 23
60.0
Near Term Improvement Meeting
Peak Hour Demands
50.0 Elevated Tank and
PR 22 Transmission
Pipeline Complete
40.0 Initial ASR
Facilities
Complete
30.0 PIPS
Improvements
,Compie~e 2018
ExisfingPlPS ,
20.0 ~ Reliable Pumping ·
Capacity -- ~ · · ,
10.0 ~·
0.0
1995 2000 2005 2010
W~ Elmmted 8forage
2015 2020 2025
Figure 7 - Impact of Recommended Improvements on Peak Hour Demand
EXHIBIT "A" 1
Page 15 of 23
Table 3
Estimated Costs, Recommended Near-term Improvements
Padre Island Desalination Plant
City of Corpus Christi, Texas
Description
ASR Initial
Production Facilities
1st Phase Elevated
Storage
SSTS Phase 4/4A
SSTS Phase 5
SSTS Phase 6 (2nd
Laguna Madre
Crossing)
Recommended
Location
Near Mustang
Island Fire Station
Along PR 22
generally between
Commodore and
Whitecap
Per Current
Design
Per Current
Design
Pita Channel
Corridor / paralrel
to Kleberg County
Line
Generally parallel
to Kleberg County
Capacity,
Volume, or
Diameter
2.5 mgd
Estimated
Construction
Cost
$ 4,000,000
30%
25% Engineering,
Contingency Admln, and
Legal
Total Capital
Cost
1 MG
42-in
42-in
42-in
36-in & 30-in
parallel
Estimated
O&M Costs
$ 1,000,000 $ 1,500,000 $ 6,500,000 $ 125,000
1,574,700 $ 393,675 $ 590,513 $ 2,558,888 $ 63,972
10,028,935 $ 2,507,234 $ 3,760,851 $ 16,297,019 $ 407,425
8,158,500 $ 2,039,625 $ 3,059,438 $ 13,257,563 $ 331,439
$ 17,614,671 $ 4,403,668 $ 6,605,502 $ 28,623,840 $
SSTS Phase 7 and 8 Line and PR 22 $ 7,521,321
Totals: $ 48,898,127
Estimated Unit Cost of Water, based on 15.1 mgd Incremental capacity increase ($/kgal)
Notes:
1. Ail costs are June 2004 dollars.
$ 12,222,147 $
$ 79,459,458 $
$
$ 1,880,330 $ 2,820,495
$ 12,224,532 $ 18,336,798
2. O&M costs include estimated pumping costs resulting from conversion of Padre Island service area to an independent service zone.
3. Debt service por'don of estimated unit cost of water based on a 30-year amortization of estimated capital costs at 6 percent interest.
715,596
305,554
1,948,986
1.43
EXHIBIT"A"
Page 17 of 23
Long-Term Service Improvements (2010 through 2050)
Improvements implemented dudng this pedod will be dependent on actual rates of growth in
population and water demands, and in water demand patterns. This differs from the near-term
because the near-term improvements are ddven by exislJng conditions and immediate need for
service improvements. Long-term improvements will be needed in proportion to the actual growth of
the service area. These improvements are anticipated to include the [ollowlng:
Storaqe Improvements: ASR can be increased specific to its demonstrated performance, up to a
maximum capacity of about 10 mgd.
Additional ground storage at the existing Padre Island pump station site will eventually be required
(volume o[ this additional storage is dependent on actual long-term water demand patterns within
the service area, but at minimum will need to comply with TCEQ requirements).
A second elevated storage tank, most likely located north portion of the City's service area, will need
to be constructed. Volume of [he second tank would be at least 300,000 gallons, and may be larger,
depending on water use patterns within the service area.
Increasincl Transmission Capacity to Padre Island: Rein[orcement of mainland b'ansmission
capacity will be necessary to replace that capacity "borrowed" to meet near-term needs on Padre
Island. This will include construction o[ a new transmission pipeline parallel to the exislJng
Southside Transmission System behveen O.N. Stevens WTP and Yorktown/Laguna Shores. These
improvements will also need to include pumping capacity increases at Staples Street Pump StalJon
and possibly at O.N. Stevens WTP, at both the high service pump stations and at the River Station.
This analysis did not include evaluation of the adequacy o[ the City's Mary Rhodes Pipeline.
The projected extent of these improvements could be minimized if a new water source, i.e., RO
was introduced on Padre Island. In effect, the capacity of Ihe RO plant would replace the capacity
of the existing 24-inch pipeline, replace capacity "borrowed" [rom the Southside Transmission
System, and, coupled with ASR on the Island, provide a redundant and reliable water supply for [he
Island. While economics of RO are not competitive at this time, RO treatment costs are expected to
continue to decline as RO technology matures. The City should continue to monitor RO treatment
economics and adjust long-term water supply planning to continue to minimize overall water supply
system costs.
Pump Station and Distribution System Capacity Improvements on the Island: Long-term, increased
pumping capacity to meet growth would likely be located near Ihe south end o[ the service area.
Additional improvements to the distribution system may be necessary dependent on the location of
Culure demands within the service area.
EXHIBIT"A"
Page 18 of 23
RECOMMENDED STEPS FOR IMPLEMENTATION
Implementation of water system improvements on Padre Island is depicted in Figure 9. As shown,
certain implementation steps have already been completed. Implementalion of olher recommended
improvements is described below.
Short-Term Activities
Recommended short-term activities presented at the March 30, 2004 council meeting are
summarized below. At this time, the recommended activities listed below either have been
completed or are underway.
Storaqe Improvements:
· Continue with
implementation of ASR
Initial Production
Facilities.
· Need for elevated
storage on the Island has
been con§rmed with
TCEQ.
Increased Transmission
Capacitv to Padre island:
· Size and cost of new
Laguna Madre crossing
have been confirmed.
Pump Station and
Distribution Svstem Capacity
Improvements on [he Island:
· Short-term improvements
at the Padre Island
Pumping Station were
authorized by Cib/
Council on June 8, 2004
and are currently under
construction.
"~ Project Authomtior, lZ~3Z
~' ComplereStage ! Pms~,~menr6/03
Validation of:
· W~ter Demm~
· Water
Padre Islaml x~te~ Modelln~
~' Apgmval of ASR 3/31/04
~ Approval of Pump Station Mods 6/8/04
Decl~ionYAcdvtty Work Flow
Figure 9 - Decision/Activity Work Flow Diagram
IEXHIBIT "A"
Page 19 of 23 II
Near-Term Activities
The following section describes the activities recommended to implement near-term water system
improvements on North Padre Island.
Storaoe Improvements
Evaluate continued ASR expansion based on performance of initial ASR production
facilities. Acquire and permit additional ASR sites based on the results of this evaluation.
Authodze, design, and construct additional ASR facilities as required to accommodate water
demands within the service area.
· Acquire an elevated storage tank site and authorize design. Proceed with construction
following site acquisition, permitting, and design.
Increased Transmission Capacity to Padre Island
Proceed with permitting, design, and construction of a new 42-inch pipeline from the Staples
Street Pump Station to Yorktown/Laguna Shores (Southside Transmission System Phases
4, 4A, and 5).
· Proceed with permitting, design, and construction of a new 42-inch Laguna Madre crossing
(Southside Transmission System Phase 6).
· Proceed with permitting, design, and construction of "on-Island" transmission piping in
suppor~ of short-term and near-term Padre Island Pump Station improvements.
Monitor population growth, water demands and usage pattems, and system performance on
North Padre Island. Reevaluate long-term water supply options and phasing requirements in
early 2006.
Pump Station and Distribution System Capacity Improvements on the Island
· Implement detailed water demand monitoring on Padre Island.
· Add a third pump at the existing Padre Island Pump Station.
· Acquire a second pump station site near Park Road 22 and the Kleberg County Line.
Long-Term Activities
The actual rate of population growth and associated water demands in the future creates substantial
uncertainty in identifying the proper scope and timing for implementation of long-term improvements.
Long-term water supply improvements on the Island will depend greatly on service area demands
and usage patterns, identified dudng recommended monitoring through eady 2006, and on long-
term population growth on the Island. Generally, activities associated with Implementing long-term
EXHIBIT "A" I
...P?? of 23
improvements on the Island are expected to include the following:
Storage Improvements
· Expand ASR in accordance with the demonsti~ted capacity and actual water demands on the
Islands.
· Add ground and elevated storage to, at a minimum, comply with TCEQ regulations.
Increased Transmission Capacity to Padre Island
· Based on the results of intedm population growth, water demand and usage patterns, and
system per[ormance monitoring, reevaluate and determine the most cost-effective and
redundant water supply for the Island.
Pump Station and Dlstribu§on Svstem Capacih, Improvements on the Island
· Expand pumping and distribution system capacity on the Island to accommodate increases in
water demand.
SCHEDULE FOR REMAINING WORK
Additional delays have been encountered in the hydrogeologic investigations associated with the
validation studies. Test pumping and water sampling were completed at the end of May 2004,
following delays of neady one month due to the unavailability et well screen. Lab analyses were not
completed until June 14, 2004, and final analyses associated with the validation study are currently
being completed. As a result, Carollo estimates that the Validation Report and Water Supply
Alternatives Report will be completed by July 31,2004. The Validation Report will include an update
et the recommended project taking the results of the validation studies into account, and will include
updated cost estimates [or the recommended project.
The Water SupplyAItematives Report will include definitive recommendations for near-term and
long-term improvements to the City's water supply system to accommodate projected population
and water demand increases on the Island. Recommendations presented in this council bdeting for
near-term improvements are common to any long-term water supply alternative and should not be
impacted by the final results of the Water SupplyAItomatives Report.
Shod-term pump station improvements are anticipated to be complete in September 2004. Initial
ASR production phase facilities will be on-line by the end of 2005.
RO plant pilot work is on hold pending results or the validation study and authorization to proceed by
City Council. Figure 10 shows a proposed timeline for implementation et recommended near-term
improvements.
IEXHIBIT '~A':" 1
Page 21 of 23 II
20O4 2005
Stw. Iv
Southride
Transmission
Main Phase 5
Complete
s~-~lv
Soutl~de
Tranrmi~ion
Main Phase 6
Complete
2006 2007
I I
2OO8
20O9
I I I
2010
I
Storage Storage
PIPS Park Road 22 l
Trammt~s~on ~-
Pipeline Complete[
20O8 &
S~ly
Lor~ Term Water
Supplr lm~,~,,wemems
_ lnd .a'h',g Additional
Crossings, R~O, FaclRties
and Matrdand I~ ~'i'[:mtion
Figure 10 - Timeline for implementation of recommended near-term Improvements
EXHIBIT "A"
Page 22 of 23
Summary and Comparison of Findings to Date
1997 2004
Population Projections
2003 -) 5,800
2O20 ") 13,400
2050 ") NOT PROVIDED
2003 ") 12,800
2020 ~ 33,500
2050 -], 51,700 (BUILD-OUT)
Per Capita Water Demand
125 gpcd
Based on City-wide municipal water
demands
2O0 gpcd
(460 gpcd for NCWClD4)
Based on actual billing records from Ihe
islands
2020 Water Demands
Average Day Demand -) 3.2 MGD
Maximum Day Demand ..) 6.7 MGD
Peak Hour Demand ~ 8.0 MGD
Average Day Demand -], 8-10 MGD
Maximum Day Demand ") 15-21 MGD
Peak Hour Demand -) 18-33 MGD
2050 Water Demands
Average Day Demand =) 4.8 MGD
Maximum Day Demand =) 10.5 MGD
Peak Hour Demand '-) 12.7 MGD
Average Day Demand -) 13 MGD
Maximum Day Demand -) 25-29 MGD
Peak Hour Demand ") 29-45 MGD
EXHIBIT"A"
Page 23 of 23
2004
Padre Island Desalination Plant
Feasibility Analysis and Siting Plan
Project No. 84~
on Validation
Supply
Work
~vements
Improvements
es
Project Authorization 12/'02
Complete Stage I Assessment 6/03
Validation off · Growth/Population
· Water Demands
· Water Quality
Padre Island Water Modeling
Approval of ASR 3/31/04
Approval of Pump Station Mods 6/8/04
June 22.04
Conclusions
water supply concept
Costs
:~.~. ..... ~ ~' ~ ~ple~ understanding of Subsidence and
~'~: '" '.:.;~ , l~ited to about 10 mgd total
,~.~: .. [,
~ . - ,
~ ~.~.' ;~-.
~ wells are viable, but production limit~ to
mgd
of water quality on RO costs now known
Table 1 Capital Cost Comparison of Water Supply Alternatives
Padre Island Desalination Plant Feasibility Analysis and Siting Plan
RO
Water Supply Capacity
Alternative (MGD)
Pipelines Only 0
Pipelines/ASR 0
Combination
Estimated Unit Cost of Wa~r
Estimated Estimated
ASR Capital Cost Annual O&M NCWCID4
Capacity (June 2004 Cost (June Total City Share Share
(MGD) Dollars) 2004 Dollars) ($/kgal) ($/kgal) ($/kgal)
0 $ 246,112,800 $ 3,755,986 $ 1.41 $ 1.10 $ 0.31
10 $ 247,220,600 $ 4,540,266 $ 1.47$ 1.14$ 0.33
10 ~5~3~4~700 $ !8,335,665 ~ 2.74 $ 2.13 $
Pipeline/RO/ASR 2.5 10 $ 255,982,200 $ 7,066,906 $ 1.67 $ 1.30 $ 0.37
Combination
Notes:
1. Unit costs based on constTuction of all facilities simultaneously, without phasing.
2. Project yield based on meeting system pe&k hour demand capacity (45 mgd).
3. Debt service based on a 30 year amortization at 6% interest.
4. NCWCID4 share of unit cost based on provision of 10 mgd capacity to NCWCID4 out of a total systerapacity of 45 mgd.
5. Capital costs include a 25%contingency on estimated construction cost, and an allowance of 30% of contingencied consl]'uc'don
cost for engineering, legal, and administrative project services.
6. RO costs based on Chicot Aquifer source, TDS=15,000 mg/L.
7. All costs are June 2004 dollars.
I
AlternatiVes Study
from mainland ~s not
Te is not cost-effective at TDS
," alternative is competitive on a
:ost basis, but operational costs increase unit
about 20% over other alternatives
"alternatives offer more flexibility to
respond to increasing demands
mprovement Flow Chart
Evaluation
Pumping &
~ Storagc
Suppl3'
Versus Facility
Term Improvements Meeting
Peak Hour Demands
With Elevated Storage
2000 2005 2010 2015 2920
rve Versus Facility
Term Improvements Meeting
Peak Hour Demands
Exi$llntl PIPS
Rel,able 'Pumping
Capacity
With Elevated Storage
2005 2010 2015 2020
PIPS
h'r',pr oven'~e his
~Jo~'l p e
I Existing PIPS I
Rehable Pdmpmg
Capacily
Versus Facility
Term Improvements Meeting
Peak Hour Demands
With Elevated Storage
2O05 2010 2015
Curve Versus Facility
Term Tmprovements Meeting
Peak Hour Demands
nd~al ASR
Exlsllng PIPS
able Pdmp~nq
Capacity
With Elevated Storage
.... -,, L~O0 2005 2010 2015 202g
rye Versus Facility
Term Improvements Meeting
Peak Hour Demands
Elevated Tank and
PR 22 Transr'n~s$~orl
P~peh,',e Complete
Inmal ASP,
Complete
PiPS I 2016
improvements/ -
Exisl~ng · .
Rehable Pumpng I ~'~
Caoacit~' I ~Z") w ~ I
W~ E~t¢ Stora~
Versus Supply
2000 2005 2010 2015
Keeping up with Max Day Demand
Versus Supply
Ex~st
,Capao y
2~0 20~
2010 2015
up with Max Day Demand
Creal~ng Separate
I
J Serwce Zol~e J
IEx~sl 24 Inch]
!3apacm/ J '~
F
Versus Supply
2000 2005 2010 2015 2020
~ Keeping up with Max Day Demand
Versus Supply
Inil~al ASR
F
Ex$1 24-1nthI
L1995 2000 2005 2010 2015 2020
:Keeping up with Max Day Demand
On I irl~
LagLJna M~dre
I ,Operal:on I
Versus Supply
1995 2000 2005
2010 2015 2020
~-~ · ' ........ Keeping, up with Max Day Demand
Versus Supply
h~ihal A~F~
Off ~n~
I f, greatmg Separate
~erv~c.e Zone
~xsl 24-111ch
',¢apac~ y
La9una Madre
Crossing ~n
Operal~on
F
J
Capacity Upon I
Loss of
24- rich L ne
2000
2~5 ~10
2015 2020
Keeping up with Max Day Demand
is Ahead
~' [)rojcc~ Au~hori:a~ion I-~02
Validation ~1':
· \Varcr Dcnmnd~
~' Padre [~hmd W,qrcr
· Approval of Pump ~tation
L)¢cision,'Acm'ir¥
lunc 2_', 04
June
Work Flow
rovements
Facility
Initial ASR
Production Facility
Padre Island Pump
Station
Conversion of
Padre Island to
separate service
zone
Southside
Transmission
System Phase 4
Southside
Transmission
System Phase 5
Laguna Madre
Crossing
(Southside
Transmission
System Phase 6)
~fr ~
Status
Pre-design
underway
Construction
underway
Dependent on
completion of
improvements at
Padre Island Pump
Station
Design nearly
complete
Design underway
Permitting
underway
Estimated Date
In Service
December 31,
2005
September 15,
2004
September 15,
2004
Mid-2005
Mid-2006
Mid-2006
Comments
Site acquisition underway via parallel
discussions with multiple land owners.
Temporary pumping equipment in-
service by June 30, 2004, with
permanent facilities in-service by
September 15, 2004.
Pending completion of Padre Island
Pump Station Improvements.
Vedfy availability of CIP Programmatic
construction budget.
Should be in service no later than Mid-
2006 to coordinate with SSTS Phase
completion. Verify availability of
programmatic CIP budget for design and
construction,
Design Authorization and programmatic
CIP budgeting needed,
Near Term
~" · ' · "- '~-..~'~~ ·I
,. ~'.~= ~?~ .,~,. ~.~ ~ ', .~ ~ · ~ ~ ~,
Padce Island Desalination Planl
i', Citj of Cor._us Christi
· . Capacity,
= Recommended
' Description Volume, or
,.~ ....!. Location
~?: . Diameter
[.'. " ASR Initial
Production
Facilities
i?':'
1st Phase
Etevated
Storage
$STS Phase
4J4A
SSTS Phase 5 Design
SSTS Phase 6 Pits Channel
(2nd Laguna Camdor/parallel
Madre to Kleberg County
Crossing) Line
Generally Parallel
SSTS phase 7 to Kleberg County
and 8 Line and PR 22
Totals:
- term Improvements
Estimated 30'1. Engineering, Total Capital Estlmatm:l O&M
Construcllon 25% Contingency Admln, and Legal Co~t Costs
Cost
Near Must3ng
Island Fire
Sla~on 2.5 mgd $ 4,000,000
Along PR 22
generally
between
Commodore and
Whitecap 1 rng $ 1,574,700
Per Current
Design 42-in $ 10,028,935
Per Current
1.
2.
3.
$ 1,000,000 $ 1,500,000 $ 6,500,000 $ 125,0 00
$ 393,675 $ 590,513
$ 2,507, 234 $ 3r760,651
42-in $ 8,158,500 $ 2,039,625 $ 3,059,438
2,558,888 $ 63,972
16,297,019 $ 407,425
13,257,563 $ 331,439
42-in $ 17,614,671 $ 4,403,668 $ 6,605,502 $ 28,623,840 $ 715,596
36- in & 30 -
In parallel
$ 7,521,321 $ 1,880,330 $ 2 ,~2.0,495 $ 12,22.2,147 ~ $ 305,554
$ 48,898,127 $ 12,224,532 $18,336,798 $ 79,45,9,456 ~ $ 1,94~,986
Estimated Unlt Cost of Water, based on t5.1 mgd Incremental capacity Increase ($/kgal) $1.43
All coat~ are June 2004 dollars.
Debt sendc~ po~o~ of es§maa~l unit ce~[ of water based ~ a 30 year amortJzatJon of e:~mated (;Loitat c eels at 6 percent Interest
Flour Bluff
SSTS
ases 4, 5
Laguna
Madre
una Shores
and Yorklow~
Maclre Crossing
SSTS Phase 6
PriZm'ed
Tank
,[
Acquisition
Demands
Performance
and Construct Facilities
Plant 9
Flow Chart
Evaluation
Implcmentauon
5uppl~
Padrc lsl'm)d P.S. Impr~vemems
l'~is~ribuffon Piping [Tnprovemel~tS
Initial Production
· Elevated Steerage & Transmission
Lacuna Madre Transmission Line
[ ~ RO Pilot Plant?
hnprovement Flow Chart
Additional Supply Decision
Milestone Decision
June 2006 ~
'on Plan
Supply
2005
SUl~k
2006
Su~y
2007
20O8
Facilities
Opcrational
Pumping
Storage
Park Koad 2_ ]
'l?animi!sionL-i
~i[\' inu C*mIp ~:teI
2009
2010
estion
11
CITY COUNCIL
AGENDA MEMORANDUM
PRESENTATION
AGENDA ITEM:
Third Quarter Presentation of Health Benefits/Risk Management Fund
STAFF PRESENTER(S):
Name
1. Cynthia C. Garcia
2.
3.
Title/Position
Director
Department
Human Resources
OUTSIDE PRESENTER(S): None
ISSUE: The Council has requested quarterly updates regarding the expenditures in
the Risk Management Fund for health benefits, workers' compensation and general
liability_
BACKGROUND: The costs for medical services, workers' compensation benef'~s,
and general liability are a large part of the Risk Management Fund. In the past, as
costs have risen in this fund, Council has expressed a concern regarding these costs
and expressed a desire to monitor the expenditures on a quarterly basis in order
that decisions can be made regarding managing the fund before expenditures
become unmanageable.
REQUIRED COUNCIL ACTION: None
Additional Background
Exhibits
Director of Human Resources
City of Corpus Christi
Risk Management Report
For the Period Ended
April 30, 2004
City of Corpus Christi, Texas
Department of Human Resources
Risk Management Fund
Report for Period Ended April 30, 2004
· Health Benefits
· Risk Management
· Workers' Compensation
· General Liabilities
Health Benefits
Graphs H-1 and H-2 shown below g~ve the plots of claims counts and dollars paid by benefit
plan for the past two and three-quarter ye~rs. The data for Fiscal 02-03 and Fiscal 03-04 is
provided in a tabular form in Tables H-I and H-2 and a plot of the average cost per claim for
those time frames is included ha Graph H-3.
Number of Claims Filed by Plan
Aug 01 Nov01 Feb 02 May 02 Aug 02 Nov 02 Feb 03 May 03 Aug 0:3 Nov 03 Feb 04
)'( Polic~
--e--Basic --~--CC & Q+ .~ Fire
· D&V +Total FY03 Trend --L near (Tota)
Graph H-1
Dollam Paid by Plan
(Including P~cdp~ons)
E $1,500,0Q0 .
0
ci $1
AugD1 Nov 01
Feb 02 May 02 Aug 02 Nov 02
Feb 03 May 03 Aug 03 Nov 03 Feb 04
· Basic
· Police
--~--Total
-~-- CC & Q+
)[ D&V
FY03 Trend
Fire
~Trendline FY04
Graph H-2
2
Number of Medical Claims Filed
Y~ar Aug Sep Oct Nov Dec Jan Feb Mar
Cificare FY03 3,108 3,384 5,134 2.925 4,975 4,883 3,866 5,370
FY04 2,693 4~776 4.516 3,634 3~161 3,430 3.868 4,1~4
Fi~e FY03 723 789 1,221 801 1,160 1.276 918 1.406
FY04 694 983 950 775 770 797 809 906
PD FY03 797 886 1,486 897 l,Sll 1,513 1,069 1,346
FY(gl 786 1,286 1,228 1,035 1,122 1,058 1,191 1,306
Basic FY03 12 6 154 50 57 49 49 70
FYIM 40 125 78 85 64 89 130 83
Total FY03 4,640 5,065 7,995 4,673 7,703 7,721 5,902 8,192
FY04 4~213 7.170 6,772 5,529 5,117 5,374 5,998 6~359
Year Aug Sep Oct
Citicare FY03 554 524 1,027
FY04 947 799 714
Fire FY03 127 136 132
FY04 122 122 109
PD FY03 146 287 197
FY04 294 198 169
Basic FY03 .599 .253 11.9
FY04 1.5 22.7 14.0
Pharm FY03 342 234 245
FY04 267 201 200
Total FY03 1,169 1,182 1,613
FY04 1,631 1,343 1.206
Table H-1
Amount Paid (In Thonsnnds)
Apr May June July Total
3,671 3,745 5,272 4,360 50693
3,887 187~
819 770 1~i29 930 11942
904 4172
1.048 952 1,320 1,169 13994
1,112 5457
86 55 40 71 699
[30 438
5,624 5,522 7,761 6,530 77328
6,033 28947
Nov De~ Jan Feb Mar Apr May June July Total
564 813 724 665 822 845 60~ 947 809 8,893
477 620 461 595 699 6057 4.021
111 185 261 170 231 152 99 143 144 1,889
97 88 113 158 100 134 652
477 379 403 231 323 465 272 257 303 3,742
162 197 190 197 317 178 1,209
4.2 2.9 2.9 4.6 6.4 5.1 10.8 1.7 7.8 59.1
9.9 4.3 9.9 12.0 5.0 6.9 62.4
243 239 393 275 269 282 262 273 393 3,452
191 211 244 210 236 221 1,314
1.399 1,619 1,786 1,345 1,651 1,749 1,245 1.622 1,655 18035
936 1,120 994 1~171 1,357 1.145 7,257
Table H-2
Cost Per Claim
Aug S~ ~ Nov Dec J~n F~ Mar A~- May Jun Jul
Graph H-3
Workers' Compensation
Claims
Table WC-1 below compares the first nine months' Workers' Compensation claims for the
current and past four fiscal years. The first nine months of Fiscal 2004 had slightly more claims
than for that same time frame in Fiscal 2003 (approximate 4% higher). Incurred costs as of April
30, 2004 are somewhat higher than that same time frame for Fiscal 2003. Whereas Incurred
Costs as of January 31, 2004 were approximately 2.8% less than Fiscal Year 2003's mid-year
incurred costs, th/rd quarter claims have reversed the relatmnship such that Fiscal 2004 incurred
costs are now approximately 14% higher than Fiscal 2003. Effective February 1, 2004, the City
entered into a new contract for third party admin/sixation and cost containment with F. A.
Richard. Prior to that date, cost containment was performed by an entity separate from the TPA.
As a result, cost containment fees are now included in the "Paid" amount for Workers'
Compensation claims. For the thtrd quarter of 2004, the total cost containment fees were
$25,367, approximately 3% of the $ 848,988 paid through third quarter 2004. In addition, the
City has added surveillance services (as needed) and increased case management services, both
of which could increase the costs of certain claims. Other factors which impact incurred costs
are salaries/wages and medical inflation. Employee wage increases as part of the City's
compensation study will increase Indemnity costs. Meanwhile, medical irdlation continues to
run in the double digits.
WORKERS' COMPENSATION
5-YEAR NEW CLAIMS HISTORY
(Fiscal Year Basis - Period Ended April
Year FY04} FYOI FY02 FY03 FY04
Tom/namber of Claims 1,030 939 902 773 802
Torsi Incurred $ 1,428,229 $ 1,016,738 $ 1,628,028 $ 1,566,006 $ 1,782,734
Total Paid $ 612,753 $ 593,658 $ 721,783 $ 774,906 $ 848,988
% of Total Incurr~l Paid Out 43% 58% 44% 49% 48%
Number of Claims Paid > $1.00 527 372 402 439 505
Number of Indemnity Cases Paid On 72 61 82 78 90
Number of MO Cases Paid On 455 311 320 361 415
Number of Claims Not Paid On 503 567 500 334 297
% Indennnity Cases of Paid-on Cases 13.66% 16.40% 20.40% 17.77% 17.82%
Number of CCFD Claims
Nttmber o£CCFD Response Calls
CCFD Claims per Call
Number of CCPD Claims
Number of CCPD Response Calls
CCPD Claims per Call
132 161 137 103 132
n/a 18,821 20,468 20,211 21,462
0.0086 0.0067 0 0051 0.0062
217 270 280 210 247
n/a 121,071 124,555 118,332 127,482
0.0022 0.0022 0.0018 0.0019
Table WC-I
Graph WC-1 shown next shows the umber of claims filed during the fu-st nine months of each
of the past five fiscal years and for which some dollar amount was paid during that 9-month
period. The nuxnber of Indemnity cases that are paid on is faixly consistent from year to year,
however, the number of Medical Only cases ("MO") paid on varies widely_ The "Claims Not
4
Paid On" reflect both claims that were closed with no expenses and claims which were open but
for which no expenses or benefits had yet been processed.
1,200
1,000
800
600 --
400 ·
2O0
FY00 FY01 FY02 FY03 F'Y04
I · Number ol~ Claims No[ Paid On O-Num~r o[ Indemnity Cases Paid O~ r't Number of MO Cases Paid On
Graph WC-I
Graph WC-2 below shows Incurred and Paid costs for the first nine months for a 5-year period.
Nine months into a Fiscal Year roughly 40% to 50% of the Incurred Costs for claim~ filed during
that period (valued as of April 30* of each year) had been paid out.
Incurred Costs vs Paid Costs
$2,000,000
$1,500,000
$1,000,000
$-
FY00 FY01 FY02 FY03 F'Y04
Fiscal Year - Period Ended April 30
~lToiai-lncurred aTotal Paid]
Graph WC-2
The previous graph shows dollars incurred and paid for claims which were filed during the first
nine months of each of the years. However, during the course of a year payments are made on
claims which were actually filed in previous years. Graph WC-3 shown next shows the dollar
amount paid during Fiscal Year 2004 for claims that were filed prior to August 1, 2003 as well as
the amount paid for current year claims. As one might expect, the next most recent year's claims
5
are responsible for the bulk of the Prior Year payments. However, a significant amount of
dollars is associated with claims that are in excess of five years old.
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$-
Dollars Paid in Current Year
for Prior Years' Claims
$313,954
$288,818
$51,043
Prior to FY2000 FY2001
FY2000 Year of Claim
$209,395
$701,583
FY2002 FY'2003
Graph WC-3
Claims by Del~artment
The following tables and charts show the history of claims made by depaxhnent for the nine
highest claim-rate departments on both a total and per FTE basis. The downward trend that was
evident at mid-year 2004 has reversed for some of the departments, whereas others have
significantly improved theh- numbers. For example, claims for Solid Waste Services are down
33% from the same period last year and Water Department's claims are down 12.5%. And
although the Fire Department had a 22% increase in the number of claima filed, the incurred
costs for the FY04 claims was 84% lower than for claims filed during the first n/ne months of
Fiscal 2003.
Cumulative 3rd Quarter Comparison - Claims Counts
F'YO0 F¥01 FY02 FY03 FY04
Department Count Coun~ Count Coun~i Count
Solid Waste Services 195 129 138 116 87
Police 217 270 280 210 247
Fire 132 161 137 103 132
Parks 75 37 41 39 45
Wastewater 71 59 61 38 43
Street 34 33 39 20 34
Water 83 32 19 36 32
Gas 60 40 40 46 44
All Other 163 178 147 165 138
Total 1030 939 902 773 802
Table WC-2
6
Year to Date Claims Count Comparison
(Period Ended April 30)
1200
1000
800
600
400
200
0
FY00
FY01 FY02 FY03 FY04
3rd Quarter
BAll Other
[] Gas
·Water
· Street
· Wastewater
· Parks
·Fire
·Police
[] ,Solid Waste Services
Graph WC-4
DEPARTMENT CLAIMS PER FFE
Period Ended April 30
Department FY00 FY01 FY02 FY03 FY04
Solid Waste Sea-vices 0.799 0.524 0.561 0.563 0.470
Police 0.318 0.474 0.491 0.340 0.403
Fire 0.405 0.495 0.422 0.309 0.371
Parks 0.605 0.298 0.331 0.311 0.329
Waxtewater 0.311 0.301 0.311 0 213 0.243
Street 0.225 0.250 0.331 0.152 0.272
Water 0.347 0.158 0.094 0.200 0.127
Gas 0386 0.265 0265 0.311 0.296
Other 0.130 0.121 0.102 0.114 0.100
Total 0.303 0.274 0.268 0.230 0.238
Table WC-3
7
Claims per Full-time Employee
1.00
~0.60
0.40
0.20 m__
o.oo
FYO0 FY01
FY02 FY03 FY04
Fiscal Year
L ---~- Solid Waste Services + Police -*~ Fire
x Parks x~ Wastewater -e--Street
~ Water - Other Gas
Graph WC-5
In the graph shown next (Graph WC-6), a comparison of incurred costs for the Erst nine months
of each year demonstrates that several departments have reduced the mount of incurred costs
compared to what was experienced in Fiscal Year 2000. This is reflective of a continued effort
by both departmental staff and Risk Management staff to increase worker safety and reduce the
number of on-the-j ob injuries.
2,000,000
1,500,000
E
_--~ i,000,O00
O
SO0,O00
Year to Dat~ Incurred Cost Comparison
(Period Ended Apffi 30)
FY00 FY01 FY02 FY03 FY04
3rd Quarter
MAll Other
[] Gas
· Water
· Street
· Wastewater
· Parks
· Fire
· Police
[] Solid Waste Services
Graph WC-6
Police and Fire Departments
The following series of graph~ shows the number of claims per fiscal year for the Police md Fire
departments. Additionally, the clain~ per call response are provided. Both the Police and Fire
departments saw an increase in the number of Workers' Compensahon claims in Fiscal 2004
compared to the same nine-month period in Fiscal 2003. At the same time, the number of
response calls has increased. For the Police department, the number of claims increased 17.6%
but the number of response calls increased 7.7%. The resulting change in the claims per call
number, however, is negligible. The Fire deparhnent, on the other hand, saw an increase of 28%
in the number of claims and a 6.2% increase in response calls. The claims per call ratio of .0062
is still significantly less than one claim per 100 response calls.
3O0
250
200
_E 15o --
o lOO
5o
Police Depa, h.ent
FY00
FY01 F'Y02 FY03
Fiscal Year - Period Ended April 30
Number of CCPD Claims 1
Graph WC-7
0.0025
00020 --
0.0015
0.0010-
0,0005
0.0000 --
FY01
Police Doparlment
FY02 FY03
Fiscal Year - Period Ended April 30
I ffi CCPD Claims per Call I
Graph WC-8
9
Fire Department
200
150
100
50 --
FY00
F'Y01 F'Y02 FY03
Fiscal Year - Period Ended April 30
II Number of CCFD ClaimsI
Graph WC-9
Fire Department
0.0100
0.0080
0,0040
0 0020
0.0000
FY01 FY02 FY03 FY04
Fiscal Year - Period Ended April 30
ID CCFD Claims per Call1
Graph WC-10
Severity
As Table WC-4 and Graph WC-11 shown next illustrate, the first nine months of Fiscal 2004
have had significantly more severe high-dollar claims compared to previous years. The number
of claims with incurred costs in excess of $50,000 has more than doubled fxom Fiscal 2003 and
the incurred cost has tripled. However, it is important to remember that these are new claims.
As they mature, the actual Incurred Cost can shift up or down depending on the progress of the
case. Consequently, the number of cases reported in the chart below can change from quarter to
quarter.
10
SEVERITY REPORT (CASES IN EXCESS OF $50,000 INCURRED COST)
Period Ended April 30
FY00 FY01 FY02 1'3(03 FY04
Number of Cases 2 0 5 3 7
Responsible Solid Waste, Water, Fire, Waste Solid Waste, Police, Stroet,
Department(s) Street fda Water, Golf Fire, Police Health, Fire
Total Incurred $ 138,1)61 $ $ 289,668 $ 218,705 $ 668,366
Incurred per Claim 69,031 57,934 72,902 95,481
Amount Paid 17,458 103,815 71,423 295,1 l 1
Reserve Remaining I20,603 185,853 147,282 373,255
Table WC-4
Severity Report (Case~> $50K Incurred)
Graph WC-11
Accident Types
Graph WC-12 below gives the distribution of claims by broad accident type for the first three
quarters of each of the past 4 fiscal years and for the current year. For purposes of this Graph,
the category "All Other" incorporates all accident types not otherwise identified and includes
distinct accident types such as "Rubbed/Abraded on," "Misc. - robbery or criminal assault,"
"foreign body in eye," "absorption, ingestion, inhalation," and other accident types_ In general,
there is no one particular type of accident that stands out as being significantly more common
than the others. However, remembering that "All Other" includes every other type of accident,
"Strain/Injury by" and "Struck/Injured by" are consistently the most cornmon types of accidents.
11
1200 -
1000
800
600
400
200
0
Year-to-Date Claim Count by Type of Accident
(Period Ended April 30)
FYO0 F'Y01 FY02 F'Y03 FY04
· S~king against/stepping on
· Foreign body in eye
· Animal/Insect Bite
[] Strain/]nJup/by
[] Struc~Jinjured by
[] Motor vehlctes
·AIL
· Falls/Slips
[] Cuts/Scrapes
[] Caugh[ Be[w~e~
[]Bums/scalds
Graph WC-12
Injury Types
Graph WC-13 shows the types of injuries reported for Workers' Compensation during the first
nine months of the previous four fiscal years and Fiscal Year 2004. Consistent with Graph WC-
12 above, strains continue be the single most frequent single type of injury followed by
Contusions (Bruising). Injury types covered under "All other trauma" include crushing, fractures,
heat prostration, dislocations, electric shock, and other types of injuries with low occurrence
rates which were combined into one group for purposes of this report.
1200
1000
800
600
400
200
0
Year-to-date Claims Count by Type of Injury
(Period Ended April 30)
[] Inflamation
· Asphyxiation
· Strain
· Sprain
[] Puncture
Fa Laceration
[] Foreign body
FY00 FY01 FY02 FY03 FY04
[] Contusion (bruise)
·Bum
· All other trauma
Graph WC-13
12
Claims Activity
Table WC-5 shown next tabulates the month to month activities w/th regard to Workers'
Compensation as reported at the end of each month of the current fiscal year.
Table WC-5
13
General Liability
The City of Corpus Christi is self-insured for general and automobile liability_ Risk
Management employs two claims adjusters who, in conjunction with City attorneys, process
liability claims for the City. Shown below in Graph GL-I are the claims for the first three
quarters of each of the most recent five years. From year to year the two most fxequently
occurring types ofclalms are for property damage and vehicle damage.
900
BOO
Types of Claims - Period Ended April 30
100 --~
2000 2091 2OO2 2OO3 2OO4
Fiscal Year
· ~ Dar~e~at~
Q Emp~o~-m~at~;i
Graph GL-1
Shown next are the number of claims file against the top nine departments and the associated
incurred costs (Graphs GL-2 and GL-3) for liability claims by department for the first nme
months of each of Fiscal Years 2000 through 20~4. The number of liability claims filed against
the City in a nine-month period is fairly consistent fxom year to year as is the distribution of
claims across the departments (Graph GL-2). Regarding costs, in Fiscal Year 2002, the amount
of incurred cost~ for claims filed against the nine top departments was relatively uniform.
However, as Graph GL-3 shows, the incurred cost of claims filed aga'mst the Police Department
has increased significantly during the past four years (Graph GL-3). It should be noted that the
incurred costs reported reflect the valuations as of April 30 for each of the five years. Actual
incurred costs change over time as claims mature and are closed out.
14
Liability Claims Count by Department
Claims Filed, Period Ended April 30
900
80o
u. 700- --
_E 6OO --
--~ 500
..-400 ':'
o ~.
~- 300 -- '":"
'~ 200 --
E
= 100 --
Z 0 '
FY2000
· Fire
· Sanitation
·Water
FY2001
=aGas
[] Storm Water
· All Others
/
I
I
FY2002 FY2003 FY2004
· Park Maintenance · Police
I~ Streets ·Wastewater
Graph GL-2
$700,000
$600,000
$500,000
o $400,000
~ $300,000
_c
$20~,000 ----
$100,000 --
$=
Incurred Costs by Depa, h,,ent
claims Filed, Period Ended April 30
FY2000 F'Y2001
· Fire · Police
· Water ·Gas
_D.~torm Water ·All Others
FY2002
·Sanitation
BI Street~
Graph GL-3
~2~3
· Wastewater
~ Park Maintenance
Graph GL-4 shown next gives thc dollars paid for claims filed during the first three quarters of
each of the past five fiscal years. As the graph demonstrates, the amount paid towards claims
immediately following the filing of those claims varies from year to year. These payments
reflect short term costs associated with liability claims as the dollars shown are only for those
claims filed during that period. However, during a year dollars are paid out on claims that were
filed during previous fiscal years. Typically, more dollars will be paid out on the more recent
years than for years further out as claims can expect to mature and be closed out over time.
15
Graph GL-5 shows the dollar mounts paid during the current fiscal year (FY04) for claims filed
in previous years.
$400,000
$350.000
$300,000
$250,000
$200,000
$150,000
$100,000
$50.000
$-
Dollars Paid by D~pari~ent
Claims Fi~ed, Period Ended April 30
FY2000 FY2001 FY2002 F'Y2003 F'¥2004
· Fire · Gas m Park Maintenance
· Police · SanltaUon [] Storm Water
r'.J Streets · Wastewater ·Water
· All Other
Graph GL-4
$500,0<30
$450,0~
$400,00~
$360,000
$300,0~1
S2S0,ooo
$2oo,ooo
$1oo,ooo
$so,ooo
s-
Dotlam Paid In Currant Year fa prevk~J~ Yearn' Ctaln~
(As of April 30, 2004)
FYI 999 F'Y2000 F'Y20<31 I=Y20(12 FY2903
[] Fire · Gas · Park Maintenance · Police
· Sanitat/on [] S~orm Water El Streets · Wastewater
~1 Water ·All Other
Graph GL-$
Cit~ Vehicle Accidents
Table GL-I, shown next, compares the monthly City vehicle accident record for Fiscal Years
2003 and 2004. This table shows that the number of accidents for the first nine months of each
year and the number of non-classifiable incidents are the same. There has been an increase in
16
both the number of city vehicle accidents and the number of preventable accidents since last
year. Efforts continue to educate City staff on safe driving practices in order to reverse this
trend.
CITY VEHICLE ACCIDENTS
Fiscal Year 2003
Fiscal Year 2004
Number of Number of
Month Accidents NCI's*
August 30 2
September 22 0
October 32 5
November 22 2
December 31 0
January 26 2
February 23 2
Ma~ch 17 3
April 19 2
May 38 1
June 25 0
July 26 0
311 19
*"NCI" = Non-classifiable Incident
Number
Number of Number of of Number of
Preventables Accidents NCI's* Preventables
13 39 0 19
5 28 3 9
12 35 0 21
7 22 2 5
13 23 5 9
11 16 1 8
8 28 3 15
5 29 2 16
5 26 4 13
18
11
12
120 246 20 115
*"NCI" = Non-classifiable Incident
Table GL-1
City Vehicle Accidents
35O
':mlll il il,,
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Fiscal Year
[.Number of Accidents* ~Number of Preventable~
Graph GL-5
17
Conclusion
The City recognizes that there are periods during which employee injuries and accidents improve
and then worsen. A number of strategies are employed to mitigate expenses related to injuries
and to ensure a safe work environment. The City's Safety team focuses its efforts on specific
target areas for departments with high risk and high incidence rates. For the Police Department,
this translates as concentration on sprains and strains, auto accidents, falls, slips and trips. For
the Fire Department, the focus is on sprains and strains, lifting injuries and falls, slips and trips.
For Solid Waste and the Service Center the effort is to address injuries related to auto accidents,
slips and trips.
Since strains and sprains are consistently the most common type of injuries, the Safety team
works in conjunction with various departments to decrease the likelihood of these injuries
occurring. The main areas of attention are auto accidents, slips and trips, and back injuries. The
Police Department, Fire Department and Service departments will be working in partnership
with Risk Management to present and participate in a City-wide safety workshop which includes
topics on slips/trips and driver safety. This workshop is scheduled for June 23 of this year.
Additionally, Risk Management works with departments to address theix specific needs.
Together, Risk Management and the Police Department have produced an educational video on
driving safety. This video will be shown to officers at the depmhuent's required trainLng
sessions. Safety meetings with Police are focusing on safety and wellness and Part I of a
program to purchase exercise equipment for the promotion of physical fitness among Police
officers has been completed. A motorcycle driver safety course is also under development and
Risk Management has conducted a risk assessment of the Police Academy mining procedures.
Along with the Fire Department, the Police Department has increased its use of the driving
course established at Bill Witt Park.
For the Service departments, pre-employment fitness assessments have been initiated for high
risk positions. On-site safety visits are also being conducted and education opportunities for
back safety, fall prevention, personal protective equipment, and situational safety awareness have
been provided.
The Risk Management division continues to focus its efforts on accident prevention, risk
identification and employee fitness_ These three areas contribute directly to the number and
severity of Workers' Compensation claims as well as Liability claims. By addressing these
areas, the City will continue to improve both the working conditions and safety of its employees.
18
Risk Management Fund
Report to City Council
3rd Quarter - Fiscal Year 2004
Presented June 22, 2004
Risk Management Fund
· Health Benefits
· Risk Management
Workers' Compensation
General Liability
Health Benefits
Health Benefits
Number of Claims Filed by Plan
, ~ 7,936 FY04 Trend
! ~-~) FY03 Trend 8/~ /~~ 7~~~, /
i 6,449 6,549
~"~' ~ ~ 6 8~2
~ ~ ~ . 58~ J 6,7~1 / ~ ~,600
~4 675 '
~g 01 h,m, 01 Feb 02 f~y 02 Aug 02 ~v 02 Feb 03 ~y 03 Aug 03 Nov 0o Feb 04
Basic
D&V
-a- C¢ & Q+
-e-Total
-e-Fire -x-Police
--- FY03 Trend
Health Benefits
Dollars Paid by Plan
(including Prescriptions)
FY03 Trend
Trend 1.8E~ 1.8E+6 1,7E~ '"'~--.~_..~
FY04
1.7~+6 1.7E-16
t tTL-~
1.6E~ ~ -~ ~
1,4E~ $ ~ / ~ ~ /1.6E~ ~ 1.4E~
Aug 01 ~v,3; Feb 02 ~y 02 Aug 02 ~v 02 Feb03 ~y 0o Au9 03 L4av u3 Feb
Basic - CC & Q+ ~Rre
I ~ Rx .: Total . FY03 Trend
--~,-- Police ~ D&V
--FY04 Trend I
Cost Per Claim
Health Benefits
$500
$400 $387.22
$200 $218.96 $213.33
$1010 $187.28 $178.14 $169.36 $184.95 $195.27
Aug Sept Oct Nov Dec Jan
; FY02 + FY03
Feb Mar Apr May Jun
FY04
Workers' Compensation
and Liabilities
Workers' Compensation
Incurred Costs vs Paid Costs
$2,000,000
$1,500,000
~ $1,000,000
$50O,OOO
$1,428k
$613k
FYO0
$1,017k
$594k
$1,628k
16k
$775k
$722k
FY01 FY02 FY03
FiscalYear-Period EndedApril30
$1,783k
$849k
FY04
Total Incurred I Total Paid
Workers' Compensation
Dollars Paid in Current Year
for Prior Years' Claims
$800,000
$700,000
._'° $600,000
,', $500,000
,_~ $400,000
~ $300 000
,.., $200,000
$100,OO0
$-
$313,954
$288,818
$51 ,O43
Pdor to FY2000 FY2001
FY2000
Year of Claim
$209,395
FY2002
$701,583
: 'i
FY2003
Workers' Compensation
Year to Date Claims Count Comparison
(Period Ended April 30)
1200
1000
1,030
939 902
800 ~ ............
6OO
400 --
200
0 ~ I
773 802
FYO0 FY01 FY02 FY03 FY04
3rd Quarter
· All Other
[] Gas
· Water
· Street
[· Wastewater
'al Parks
· Fire
· Police
[] Solid Waste Services
Workers' Compensation
Year to Date Incurred Cost Comparison
(Period Ended April 30)
$2,000,000
$1,628K
$1,428K
$1,$00,000
$1,017K
$1,000,000 ~ .......
$500,000
$1,783K
$1,566K
FY00 FY01 FY02 FY03 FY04
3rd Quarter
· All Other
[] Gas
· Water
· Street
[] Wastewater
[] Parks
· Fire
· Police
[] Solid Waste Services
Workers' Compensation
Year.to-date Claims Count by Type of Injury
(Period Ended April 30)
1200
1000
800--
600--
400--
200--
0--
1,030
939 902
773 802
FY00 FY01 FY02 FY03 FY04
~ Strain
· Sprain
[] Puncture
[3 Laceration
[2 Foreign body
[] Contusion (bruise)
~ Burn
[] All other trauma
General Liability
$700,000
~600,@00
~500,000 $438K
$400,000
$300,00.., .........
$200,00O
$100,000
S-
FY2000
· Fire
· Water
[] Storm Water
Incurred Costs by Department
Claims Filed, Period Ended April 30
$603K
$525K
$353K ~
FY2001 FY2002 FY2003
· Police · Sanitation
· Gas [] Streets
[] All Others
$594K
FY200~I
· Wastewater
· Park Maintenance
General Liability
~500,000
$300,000
$250,000
3200,000
$1S0,000
31d0~000
$50,000 --
$-
· Fire
[] Storm Water
Dollars Paid in Current Year for Previous Years' Claims
(As of April 30, 2004)
$461K $ 452K
$ 294K
$ 7.5K $14.2K
FY1999 FY2000 FY2001
· Gas · Park Maintenance
[] Streets · Wastewater
· Police
· Water
FY2002
FY2003
· Sanitation
· All Other
906
400
2O0
791
General Liability
Types of Claims- Period Ended April 30
702 677 674 686
2000 2001 2002 2003 2004
· Policies/Practices/Contract
[] Police-related
· Property Damage-related
· Vehicle Damage
[] Fire Department-related
· Personal Injury-related
[] Employment-related
· Water/Waste damage-related
mAIl Other
Questions &
Comments
12
CITY COUNCIL
AGENDA MEMORANDUM
PRESENTATION
AGENDA ITEM: Review of Recommended Bend 2004 Project List
STAFF PRESENTER(S):
Name
1. Mark L. Mc Daniel
2. 'Angel R. Escobar, P.E.
3.
Title/Position
Asst. City Manager
Director
Del~artment
Support Svcs.
Engineering Svcs.
OUTSIDE PRESENTER(S):
Name
1. None
TltlelPosition
Or.qanization
ISSUE: Funding for general obligation capital needs such as streets, public
facilities, park improvements and other projects will require issuance of voter-
approved bonds. In formulating a recommended Bond 2004 program, staff has
compiled a list of projects consistent with council directive and prioritized needs.
(Included under separate cover) The City Council will use the recommended list as
a basis to finalize a Bond 2004 package to be presented to the citizens in a
November 2004 Bond Election.
13
CITY COUNCIL
AGENDA MEMORANDUM
PRESENTATION
AGENDA ITEM:
Overview of Proposed FY 2004-2005 Special Revenue, Internal Service and Debt Service
Funds Budgets.
STAFF PRESENTER(S):
Name
Mark L. McDaniel
Title/Position Department
Assistant City Manager-Support Sen/Ices
ISSUE:
The City Council is scheduled to adopt the FY 2004-05 Budget pdor to August 1,
2004. As part of the Council review of the proposed budget, this final presentation
will focus on remaining major funds:
Special Revenue Funds
Crime Control Distdct
Hotel Occupancy Tax
P, einvestment Zone No. I & 2
Arena Facility
Business & Job Development
Development Services
Seawall Improvement
LEPC
Visitors Facilities
Internal Sen/ice Funds in general
Debt Sen/ice Funds in general
For Council review, the Summary of Contributions to Outside Agencies/Programs
("Blue Book") has been included under separate cover.
REQUIRED COUNCIL ACTION:
No formal action is required at this time. First and second readings on budget
Adoption are scheduled for July 13~ and July 20~ respectively_
Mark L. McDaniel
Assistant City Manager
Support Services
Power Point Presentation X
Exhibits []
Investing in Our Future
FY2004-05
Proposed Budget
Other Funds
Proposed Budget - Other Funds
Special Revenue
Funds
Expenditures by Fund
CC&PD
13%
Dev Services
Fund RIZ~2
13% 2%
Bus_&Job RIZ gl
Dev. 1%
13%
Visitors Fac
10%
LEPC
0%
Seawall
9%
Tax
27%
12%
Proposed Budget - Special Revenue Funds
Hotel Tax &
Visitors Facilities
Funds
2
Visitors Facilities Fund Revenues*
Arena Fund Other
9% 0%
Coliseum
2%
HOT (7%)
89%
*Excdudes dedicated 2 % funding.for Convention Center expansion-
Visitors Facility Fund Expenditures
Arena
22%
Other
12%
Water Garden
4%
Cultural Fac.
13%
Coliseum
9%
Cony.
Center/Aud.
4O%
*E. rcludes dedicated 2%funding for Convention Center expansion_
3
HOT Fund Expenditures
Debt Service
Beach
Services-
14%
Conv. Center
35%
CVB/Conv. 6%
Promo. ~lulticultural
38% Support
2%
*Excludes dedicated 2 % funding for Convention Center expansion.
Visitors Facilities Fund Fiscal Issues
· Operation & Management of New American
Bank Center
· Contractedforfirstfull year
· Includes separate catering contract
· Continued use of HOT funds
· Use of Arena Fund for start up
· Use of Coliseum in current capacity
programmed to conclude November 1st
4
HOT Fund Receipts
· .4ssumes 4.65% growth on 7% tax for CY
· Assumes 3.5% growth for FY2004-05
m l
2001 2~2
F'm cai Year
HOT Fund Fiscal Issues
· Includespayment to CVB per current contract,
plus early payout of~IBC incentive
· Increase in Beach Maintenance Funding
· Contributions to ~4rts/Historical Venues for the
promotion of tourism
Proposed Budget - Special Revenue Funds
Development
Services
Fund
Development Services Fund Revenues
Gen. Fund
36%
In terdepL Serv.
7%
Plaffing &
3%
Bldg. Permits
20%
Plumhlng
Permi~
7%
11%
Permit~
8%
Mech. Permits
8'/,
Development Services Fund Expenditures
Other
Spec. Services /
Engineering
16%
31%
Development Services Fund Fiscal Issues
· Improved buildingpermit activity
· Reduced General Fund subsidy
· Enhanced e-Services and computer support
7
Proposed Budget - Special Revenue Funds
Other Special Revenue
Funds
Revenues - Other Special Revenue Funds
CCPD Sales RIZ #2 Taxes
Tax 4%
22%
Seawall Sales
Tax
25%
Arena Sales
Tax
25%
Bus.&Job
LEPC Dev. Sales Tax
0% 24%
NOTE: Tax collections include interest earnings for each fund.
Expenditures - Other Special Revenue Funds
CCPD
26%
O0aer
1%
Business
Incentives -
9%
Baseball Stadium
Reserve
15%
TIFfRIZ gl
1%
TIF/RIZ #2
3%
Seawall
18%
Afforcl~ bte
Housing
3%
24%
Other Special Revenue Funds Fiscal Issues
· Termination of RIZ #1
· Debt Service for RIZ #2 (Packery Channel)
· CCPD Fund budgetedper Board approval
· Continued debt service for Arena, Seawall and
Stadium
· Continued funding for creation o f jobs:
· Business incentives
· Affordable housing
Proposed Budget - Other Funds
Internal Service
Funds
Internal Service Fund Expenditures
Internal service funds support other City operations on a
cost basis.
Eng. Services
6%
Stores
4°/°
MIS
17%
Services
23%
Risk Mgmt.
50%
10
Internal Service Funds
· Risk Management Fund:
- Cost/Premium Increases Per Actuary Study
- Continued Positive Fiscal Trends
· Municipal Information Systems (MIS) Fund:
- Maintenance/Upgrades for Enterprise Systems
- AMR/WiFi Initiative
- Phase H of Call Center Implementation
· Maintenance Services Fund:
- Increase for Parts~Fuel; Decrease for Capital
Proposed Budget - Other Funds
Debt Service
Funds
11
Expenditures - Debt Service Funds
Seawall
Airport 5%
Utility ~,'
40%
General
41%
TIF L~rena
1% / 5%
Stadium~
4%
Combined General Long Term Debt
$31
516 -
24
12
Combined Utility System Long Term Debt
Pending New Issues/Bonds
· New COs for landfill improvements -
authorized and pending
· General Obligation Refunding-
authorized and pending
· Commercialpaper refunding -
authorization July 13th
· Packery Channelfinal issue -
authorization July 13th
· Bond 2004 - November election
13
Balance of Schedule
· June 29ta -
Public Hearing
· July 13t~ and July 2~h -
1st & 2nd Reading of Adoption Ordinance
27
FY2004-05
Proposed Budget - Enterprise Funds
Questions
&
Comments
Investing in Our Future
14
14
CITY COUNCIL
AGENDA MEMORANDUM
City Council Action Date: 06/22/04
AGENDA ITEM: Resolution approving the FY 2004/05 budget for the Corpus Christi Crime
Cor~ol and Prevention District.
ISSUE: Provisions of the Local Government Code section 363.204 require that the governing
body of the political subdivision that created the Cdme Control and Prevention District shall
hold a public hearing on the proposed annual budget to receive public comment and approve
or reject the budget submitted by the Board of Directors of the Corpus Christi Cdrne Control
and Prevention District_
BACKGROUND INFORMATION: The voters on November 4, 1997 established the Crime
Control and Prevention Dist~'ict for 5 years beginning April 1, 1998. The voters renewed the
District on November 6, 2002. This continues the 1/8~-cent sales tax to fund the District and
provide additional funds to enhance law enforcement efforts in the City of Corpus Christi.
The Cdme Control and Prevention Disthct held a public headng on Apdl 21, 2004 and the
Board adopted the budget on April 21, 20041 The City co~w~c~l held a public hearing on
June 8, 2004 in ~ with notice and all other procedures required by law. The
budget must now be submitted to the City Council for approval.
REQUIRED COUNCIL ACTION: Approval of the FY 2004/05 budget.
PREVIOUS COUNCIL ACTION: Public hearing held on June 8, 2004.
CONCLUSION AND RECOMMENDATION: Staff recommends approval of the budget.
P. Alvarez,
Chief of Police
Attachments: Adopted budget
City of Corpus Christi
Crime Control & Prevention District
FY-2002/2003 Actual Year End Numbers
FY-2003/2004 Year End Estimates
FY-2004/2005 Preliminary Budget
Crime Control & Prevention District
FY-2002J2003 Actual Revenue & Expenditure Numbers
FY-2003~2004 Year End Revenue & Expenditure Estimates
FY-2_004/2005 Preliminary Budget
Actual Amended Estimated Preliminary
2002-2003 2003-2004 2003-2004 2004-2005
_Beginning Balance 2,834,034 2,195,883 2,195,883 2,085,607
Revenues
Sales Tax 3,709,741 3,824,060 3,824,060 3,938,782
Interest on Investments 38,203 53,527 43,918 41,712
Miscellaneous 26,516
Total Cun'ent Revenues
Total Funds Available
3,774,460 3,877,587 3,867,978 3,980,494
6,608,493 6,073,470 6,063,861 6,066,101
Expenditures
Legal Advisor _ 41,105
Police Officer Costs 3,188,424 3,243,313 3,309,374 3,575,938
Support Personnel _ 251,033 80,388 66,861 72,162
Pawn Shop Detail 58,802 62,086 62,403 1
MDT/AVL Technical Support 123,280 128,796 120,430 122,558
Street Lighting 5,709 21,1 82 1,335
Public Safety Vehicles & Equip. 173,754 20,600 16,600 109,000 2
Police Academy Costs 77,157
Election Costs 68,604
Juvenile Assessment Center 295,122 320,243 294,476 339,139
Citizen Advisory Councils 20,509 20,000 11,291 10,0~3
Juvenile City Marshal_s~ _ 109,111 119,610 95,486 126,717
Total Expenditures
4,412,611 4,016,218 3,978,254 4,355,517
Ending Balance
2,195,683 2,057,254 2,085,607 1,710,583
Surplus / (Deficit)
(638,151) (138,631) (110,276) ~375,024)
1. Pawn Shop Detail:
Confirms pas~ action of board to not r~new paw~l shop detail as scheduled in previous budget adoptions.
_
2. Public Safety Vehicles & Equipment:
Replacement vehicles r~duce=l from 8 to 5 veh~les as per board action.
Crime Control & Prevention District
Legal Advisor/11710
Expenditure Budget
Actual Amended
2002-2003 2003-2004
Estimated Proposed
2003-2004 2004-2005
Salaries & Wages 29,861
Other Pay 113
Retirement 5,783
Group Insurance benefits 1,960
Fuel & Lubricants 3,022
Books & periodicals
Minor tools & equipment
Minor computer equipment
Professional services
Vehicle repairs 31
Self insurance allocation 336
Computer equipment
Total Costs 41,105
Positions: 2002-03 2003-04
Attorney II I 0
Position transferred_to Legal Dept. in General Fund.
Crime Control & Prevention District
Police Officer Costs/11711
Expenditure Budget
Actual Amended Estimated Proposed
2002-2003 2003-2004 2003-2004 2004-2005
Salaries & Wages
Overtime
Other Pay
Retirement
Group insurance benefits
Clothing
Fuel & lubricants
Food and food supplies
Books & periodicals
Minor tools & equipment
Minor computer equipment
Office supplies
Professional services
Vehicle repairs
Mileage reimbursement
Postage & express charges
Equipment maintenance
Travel
Supplemental insurance
Self Insurance allocation
Other equipment
Reimbursement
2,042,024 1,928,778 2,056,350 2,157,767
142,253 177,498 156,488 181,492
107,998 123,618 113,752 126,399
439,290 433,182 433,688 511,241
230,233 277,692 277,692 325,451
36,193 34,368 34,368 35,281
33,368 25,750 25,750 29,559
207 92 1 50
2,923 20,436 3,436 3,179
1,842
4,405 3,839 3,839 4,122
2,049 105 1,077
303 1,500 1,500 902
(49) (448)
250 1,51 5 1,815 1,033
-- 37,200 37,200 37,200 37,200
109,776 161,904 ~61,904 161,088
Total Costs 3,188,424 3,227,280
3,309,374
3,575,938
Schedule Of Police Officer Deployment:
Universal Hiring Program 10
Additional Officers - July 1999 5
Addrfional Oi=flcera - February 200(} 15
AddiUonal Officers - July 2000 10
Additional O[flcer~ - April 2002 10
Total Police Officers 50
Positions: 2002-03 2003-04 2004-05
Police Officers 50 50 50
Crime Control & Prevention District
Support Personnel/11712 __
Expenditure Budget
Salaries & Wages
Overtime
Other pay
Retirement
Group insurance benefits
Fuel & lubricants
Office supplies
Vehicle repairs
Self insurance allocation
Total Costs
Actual Amended Estimated Proposed
2002-2003 2003-2004 2003-2004 2004-2005
Positions:
Office Assistant II
Senior Staff Assistant
Functional Analyst V
Functional Analy_st_
Public Safety Dispatcher
Crime Scene Technician I
Total Positions
142,606 53,306
18,212 2,851
1,046 702
30,758 _. 11,031
52,279 5,412
6,131 6,480
251,033 80,388
2002-03 2003-0~,
2 0
0 1
I , 0
7 t o
1 0
11 2
44,134 48,865
1,027 2,000
795 737
8,713 9,647
5,412 9,719
300
6,480 6,192
66,861 72,162
2004-05
0
0
0
1
0
0
1
Crime Control & Prevention District
Pawn Shop Detail/11713
Expenditure Budget
Actual Amended Estimated Proposed
2002-2003 2003-2004 2003-2004 2004-2005
~alaries & Wage_s - 40,376 40,540 41,776
Overtime 438 916
Other pay 403 415 419
Retirement 7,938 8,123 8,216
Group insurance benefits 8,824 5,412 5,412
Office Supplies 200 100
Self Insurance allocation 824 6,480 6,480
Total Costs 58,802 62,086 62,403
Positions:
Office Assistant II
Senior Staff Assistant
2002-03 2003-04 2004-05
3 0 0
0 2 0
3 2 0
Program phased out in 04/05 by board action of meeting on 03/17/04.
Crime Control & Prevention District
MDT/AVL Technical Support/11714
Expenditure Budget
Actual Amended Estimated Proposed
2002-2003 2003-2004 2003-2004 2004-2005
Salaries & Wages
Overtime
Other pay
Retirement
Group Insurance benefits
Minor computer equipment
Office supplies
Self Insurance allocation
Total Costs
84,515 89,856 85,328 90,306
1,488 3,724 1,560 1,600
914 842 842 884
16,580 18,318 16,644 19,208
10,631 9,576 9,576 4,367
8,312
840 6,480 6,480 6,192
123,280 128,796 120,430 122,558
Positions:
Functional Analyst V
Functional Analyst
Technical Specialist VI
Technical Specialist
Tota Pos tons
2002-03 200.3-04
I 0
0 1
I 0
0 1
2 2
2004-05
0
1
0
1
2
Crime Control & Prevention District
Street Lighting/11716
Expenditure Budget
Actual Amended
2002-2003 2003-2004
Estimated Proposed
2003-2004 2004-2005
Professional services
Equipment maintenance
Total Costs
5,709 21,182 1,335
5,709 21,182 1,335
Crime Control & Prevention District
Public Safety Vehicles & Equipment]11717
Expenditure Budget
Amended Estimated
Purification chemicals
Minor tools & equipment
Minor computer equipment
Minor office equipment
Office supplies
~ehicle repairs
Postage & express charges
Equipment maintenance
Vehicles & machinery
Other equipment
Computer equipment
Actual
~0O2-2003
21,990
868
150,896
20O3-20O4
20,600
Proposed
20O3-2OO4 2004-2OO5
16,600
109,000
FY-2007/08-5 replacement vehicles
Vehicles reduced by board action of meeting on 03/I 7/04.
F-Y-2OO3-.O4-radios & MDT/A VLS
FY-2005/06-5 replacement vehicles
Total Costs 173,754 20,600 16,600 109,000
FY-2002-03-7 replacement vehicles
Crime Control & Prevention District
Police Academy/11718
Expenditure Budget
Salaries & Wages
Overtime
Other pay
Retirement
Insurance
Clothing
Books & periodicals
Food & food supplies
Minor tools & equipment
Office supplies
Professional Services
Telephone/telegraph service
Postage & express charges
Training Aids
Actual Amended
2002-2003 2003-2004
64,083
11,992
739
80 -
275
(13)
Fuel & Maintenance
Vehicle Costs I
Self insurance allocation I - ~-~
Total Costs ~ 77,157 -
Estimated Proposed
2003-2004 2004-2005
Schedule Of Police Officer Deployment
Universal Hiring Program
AddiUonal Officers - July 1999
Additional Officers - February 2000
Additional Officers - July 2000
Additional Officers -April 2002
Total Potice Officers
This program is phased ou! as all police
officers have been deployed as per orfginal
goals of Crime District
Crime Control & Prevention District
Election Costs/49001
...... _Ex_penditure Budget
Actual Amended
2002-2003 2003-2004
Estimated Proposed
2003-2004 2004-2005
Professional Services 68,604
Total Costs 68,604
Crime Control & Prevention District
Juvenile Assessment Center/49002
Expenditure Budget
Actual Amended Estimated Proposed
2002-2003 2003-2004 2003-2004 2004-2005
Salaries & Wages
Overtime
Other pay
Retirement
Group insurance benefits
Food & food supplies
Minor tools & equipment
Minor office equipment
Office supplies
Maintenance materials
Maintenance & repairs
Professional services
Temporary services
Postage & express charges
Rentals
Mileage reimbursement
Telephone/telegraph service
Building. maintenance & serv.
175,337 179,730 151,959 194,787
1,741 2,122 903 2,228
703
31,234 35,279 28,346 40,784
30,523 21,984 21,984 21,137
1,239 1,53_0 1,530 1,530
969 1,224
47,666 48,556
1,29O 1,530
1,044 3,856
84 1,020
0 0
~raining-cjeneral
Printing advertising & PR
Printing outside print shops
Travel
858
Self insurance allocation 2,436
Total Costs 295,122
100
5OO
10,792
224 514
48,556 48,556
1,530 1,530
3,856 3,856
900 750
475 500
1,020 900 750
130 150
1,020 1,020 1,020
21,372 21,372 20,448
320,243 294,476 339,139
Positions: FY-2002/2003 2002-03
Office Assistant II 1
Staff Assistant 0
Intake Specialist 2.6
Program Manager 1
Juvenile Assessment Center Supt. 0
Case Manager 2
Administrative Assistant 0
Total Positions 6.6
2OO3-O4
0
1
2.6
0
1
2
0
6.6
2OO4-O5
0
0
2.6
0
1
2
1
6.6
Crime Control & Prevention District
Citizen Advisory Councils/49008
Expenditure Bud~g_et_
Actual Amended Estimated Proposed
2002-2003 2003-2004 2003-2004 2004-2005
Minor tools & equipment 7,414
Minor computer equipment
Office supplies
Maintenance & repairs
Maintenance materials 255
Professional services 2,500
Postage & express charges 263
Telephone/telegraph svc.
Memberships & dues
Printing advertising & PR 10,078
Total Costs 20,509
[
2,003 2,003
10,000 4,144 4,000
4,000
10,000 5,144
20,000 11,291
10~003
Crime Control & Prevention District
Juvenile City Marshals/49010
Expenditure Budget
Actual Amended
2002-2003 2003-2004
Estimated Proposed
2003-2004 2004-2005
Salaries & Wages 46,323
Overtime 22,332
Other pay 200
Retirement 13,310
Group insurance benefit 6,382
Professional services 20,000
Self insurance allocation 564
Totals 109,111
86,246 61,817 91,174
4,497 5,000
. 16,732 12,539 19,909
8,532 8,532 2,894
8,100 8,100 7,740
119,610 95,486 126,717
Positions: 2002-03 200~3-04 2004-05
Deputy City Marshal 2.5 i 2.5 2.5
RESOLUTION
APPROVING THE FY 2004-2005 I~UDGET FOR THE CORPUS CHRISTI
CRIME CONTROL AND PREVENTION DISTRICT.
WHEREAS, on November 4, 1997, the citizens of Corpus Chdsti voted to approve the
Crime Control and Prevention District;
WHEREAS, on November 6, 2002, the citizens of Corpus Christi voted to renew the
Crime Control and Prevention District;
WHEREAS, on April 21, 2004 the Corpus Christi Crime Control and Prevention Distdct
Board held a public headng on the FY 04-05 Cdme Control and Prevention District
budget; and after the public headng the Corpus Christi Cdme Control and Prevention
District Board adopted the budget; and
WHEREAS, on June 8, 2004, the City Council of the City of Corpus Christi held a public
headng on the FY 04-05 Crime Control and Prevention District budget submitted by the
Corpus Chdsti Crime Control and Prevention District Board.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. The City Council approves the FY 2004-2005 Corpus Chdsti Crime
Control and Prevention Distdct budget as submitted by the Corpus Christi Cdme Control
and Prevention District Board, a copy of which is attached and incorporated as an
Exhibit to this Resolution.
A'I-rEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Approved: June 17, 2004;
Doyle Curtis
Chief, Administrative Law Section
Senior Assistant City Attorney
For City Attomey
Samuel L. Neal, Jr.
Mayor
Corpus Chdsti, Texas
Day of ,20
The above resolution was passed by the following vote:
Samuel L. Neal, Jr
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
15
CITY COUNCIL
AGENDA MEMORANDUM
City Council Action Date: June 22, 2004
AGENDA ITEM: Motion authorizing the City Manager or the City Manager's designee to
execute an agreement with Service Amedcan Corporation, doing business as Centerplate,
to operate and manage the food and beverage services at the new Multi-Purpose Arena,
Convention Center and Selena Auditorium.
ISSUE: The City has determined that management and operation of the food and
beverage services at the Bayfront Plaza Convention Center, Selena Auditorium and the
new Multi-Purpose Arena shall be delegated to a pdvate management company with
experience and expertise in the management, operation and marketing of food and
beverage services in similar facilities.
REQUIRED COUNCIL ACTION: Council approval is necessary to enter into an
agreement.
PRIOR COUNCIL ACTION: On August 19, 2003, Council authorized the City Manager, or
his designee, to negotiate a contract with Service American Corporation doing business as
Centerplate to provide food and beverage services for the Bayfront PI~7~ ConventJon
Center, Selena Auditorium and the new Multi-Purpose Arena in accordance with Request
for Proposal No. BI-0027-03-A.
FUNDING: Arena Facility Fund
CONCLUSION AND RECOMMENDATION: Staff recommends the execution of an
agreement with Service American Corporation doing business as Centerplate to operate
and manage the food and beverage services at the Arena, Convention Center and Selena
Auditorium_
Assistant City Manager
BACKGROUNDINFORMATION
The City Issued Request for Proposals on or about March 6, 2003 from pdvate parties for
provision of food services at the Convention Center, Selena Auditorium and the Arena and
thereafter selected Centerplate as the best qualified firm to provide food and beverage
service.
On August 16, 2003, Council authorized the City Manager, or the City Manager's designee
to enter into negotiations with Centerplate to provide food and beverage service.
In October, 2003 staff met with local caterers to discuss the proposed contract. While
discussion occurred dudng the meeting about general issues related to the proposed
agreement, staff agreed to meet with the local caterers again at some future date.
On June 17, 2004 staff met with the local caterers to discuss the proposed Centerplate
contract and to also discuss policies and procedures. Copies of both the proposed
agreement and proposed policies and procedures were submitted to the caterers before
the meeting.
A copy of the policies and procedures are enclosed as part of this packet.
Page 1 of 41
FOOD AND BEVERAGE SERVICES AGREEMENT
THIS FOOD AND BEVERAGE SERVICES AGREEMENT ("Agreement") is made
and entered into effective as of January 1, 2004, by and between Service America
Corporation, a Delaware corporation, having its principal place of business at 201 East
Broad Street, Spartanburg, SC 29306, doing business as "Centerplate," and the CITY
OF CORPUS CHRISTI, TEXAS (~City'), a Texas home rule municipal corporation,
acting through its authorized City Manager, or the City ManageFs designee. Any
references in this Agreement to the "Party" or "Parties," shall mean Centerplate and the
City, according to the context.
RECITALS
WHEREAS, the City is making improvements to the existing Bayfront Plaza
Convention Center (the "Convention Center") and to Selena Auditorium (the
"Auditorium"), and additionally is constructing a new Multi-Purpose Arena (the "Arena"),
which will be attached to the Convention Center, all located in Corpus Chdsti, Texas, for
the purpose of holding conventions, athletic events, concerts and civic events
(collectively referred to In this Agreement as the "Facility"); and
WHEREAS, the City has determined that management and operation of the food
and beverage services at the Facility shall be delegated to a pdvate management
company with experience and expertise in the management, operetion and marketing of
food and beverage services in similar facilities; and
WHEREAS, the City, on or about March 6, 2003, issued a request for proposals
from pdvate parties for provision of Food Services at the Facility, and thereafter
selected Centerplate as the best qualified firm proposing to provide services to the City;,
NOW THEREFORE, in consideration of the foregoing premises and the promises
exchanged by the parties, it is agreed as follows:
ARTICLE 1
DEFINITIONS
The following capitalized terms used in this Agreement shall, unless the context
otherwise requires, have the meanings ascdbed to them below:
"Affiliate" means (with respect to any corporation, partnership or other entity)
any other entity, which directly or indirectly, through one or more intermediaries,
Controls or is Controlled by, or is under common Control with, the specified Party.
"Control" means, in the case of a corporation, direct or indirect ownership of at least
10% of all its voting stock or, in the case of a partnership or other entity, direct or
indirect ownership of at least 10% of the legal and equitable interest in the Party;, or,
alternatively, the ability to direct the management, operations or policy decisions of the
corporation, partnership or other entity in question.
Page 2 of 41
"Anticipated Arrangement" means an arrangement which the Parties believe
may be necessary to comply with both TABC and Bond requirements, whereby
theywould engage an entity, independent of both Parties (the "Separate Entity") to
provide the alcoholic beverage services and to obtain and hold the Texas Alcoholic
Beverage Commission (~TABC") licenses and permits necessary to serve alcohol at the
Facility (as further described in Paragraph 2.4 below), and to receive the funds from and
pay all expenses related to (after entering into an agreement with the City and/or
Centerplate) the sale of alcohol at the Facility. The Separate Entity may enter into a
management agreement with Centerplate to manage all aspects of alcoholic beverage
service, including certain aspects related to the storage of goods and other matters
related to alcoholic beverages, but only so long as this management agreement
complies with TABC regulations and is a qualified management contract under Internal
Revenue Service Revenue Procedure 97-13, 1997-1 C_B. 632. [See Paragraph 7.9 c.].
In this Anticipated An'angement, the City shall not be paid more from the gross sales of
alcoholic beverages than is allowable by TABC, and Centerplate shall not be paid an
amount less than its Base Management Fee, as described in Article 8, below.
"Authorized Representative" means any person designated in writing by a
Party to act on its behalf within the scope of the authority given the person by the Party.
The City has designated the General Manager of SMG, a Pennsylvania general
partnership, its successors and assigns, to be its Authorized Representative for
purposes of this Agreement because SMG manages the Facility for the City.
References in this Agreement to the City may, as determined by context, refer to the
General Manager, except where explicitly stated to the contrary, In which case the
Authorized representative shall be the City Manager or the City Manager's designee.
All references to the City in this Agreement in the context of budgetary items, funding,
and financial decisions, refer to the City and require the approval of the City Manager or
the City Manager's designee._Centerplate designates its Food Services Director for the
Facility, when hired, as its Authorized Representative; however, before designation of
the Food Services Director, Centerplate shall designate an intedm Authorized
Representative to act on its behalf.
"Base Management Fee" means the Management Fee retained by Centerplate
in accordance with Article 8, below.
"Bonds" shall mean the Bonds issued to finance the Facility or the Bonds that
will further finance the Facility, the interest on which is or will be excludable from the
bondholder's gross income for federal income tax purposes under Section 103 of the
Intemal Revenue Code of 1986, as amended (the "Code").
"Budget" means the Capital Budget, the Operating Budget, or both, collectively
(each as defined in Article 5). An "Approved Budget" means any Budget submitted by
Centerplate to and approved in writing by the City (including any amendment thereto
approved in writing by the City) and shall include the Approved Capital and Approved
Operating Budgets for the Pre-Opening Period.
"Capital Budget" means the Budget for Reimbursable Expenses, including but
not limited to expenditures for Smallwares, office furniture, kitchen supplies, and other
L:~Lega~c-,orlx~ Cl'~lsb'~un.2.04 IlnN (l~aln).doc
Page 3 of 41
tangible items whereby the purchase would constitute a Capital Expenditure, and
excluding any items that represent Direct Operating Costs.
"Capital Expenditure" means all expenditures for building additions, alterations
or improvements, and for purchases of initial or replacement furniture, machinery or
equipment, the depreciable life of which, according to generally accepted accounting
principles, is more than one (1) year.
"Catering' means functions where payment is received in advance from one
party for prearranged Food Services, including but not limited to, dinners, banquets, and
receptions and hosted bars.
"Concessions" means Food Services where payment is made at the time Food
Products are served or delivered. An example of this includes an individual purchasing
items at a concession stand or from a cash bar.
"Contract Year" means the partial year commencing on the date this Agreement
is executed and ending on July 31, 2004, and each successive twelve-month pedod
beginning on August I thereafter. The Contract Year shall coincide with the Fiscal
Year_
"Depository Account" means the federally insured bank account maintained by
Centerplate in which Centerplate shall deposit all Gross Receipts. Centerplate shall
maintain in said account all Gross Receipts and other moneys, operating funds, and
capital required to be maintained under this Agreement which are and shall be the
property of the City. Subject to the terms of this Agreement. the City shall have access
to the Depository Account at all times. In the event of the Anticipated Arrangement, any
funds from the sale of alcohol will be placed in an account that is in the control of either
Centerplate and/or the Separate Entity, but not the City, and this account will be used to
pay Direct Operating Costs related to the sale of alcohol.
"Direct Operating Costs" are Centerplate's actual out-of-pocket costs, which
shall be deducted from Gross Receipts, incurred to operate the Food Services at the
Facility, as approved by the City by means of a Budget, the approval not to be
unreasonably withheld, delayed or conditioned. These costs include the actual expense
of the product (except that in the event of the Anticipated Arrangement, the product
referred to shall not include alcoholic beverages); all contract labor; all Management
Fees paid to Centerplate under this Agreement; on-site payroll, payroll taxes, fdnge
benefits and other on-site operating expenses, repairs and maintenance; audit fees,
legal fees and other professional fees; fees payable to subcontractors; refuse removal;
insurance premiums paid under this Agreement; uniforms; cleaning supplies; data
processing; advertising, marketing, and public relations expenses; pest control; travel,
lodging and related out-of-pocket expenses; professional development and training
expenses for the benefit of the Fond Services; office supplies, employment fees, freight
and delivery, lease of equipment, Master Card, VISA and other credit and debit facilities
and telecheck fees and expenses; and any other items identified elsewhere in this
Agreement as representing Direct Operating Costs. Direct Operating Costs do not
include any corporate overhead or corporate administrative expenses, but do include
Page 4 of 41
Emergency Expenditures, to the extent they are reasonably approved by the City.
Direct Operating Costs also do not include any amounts representing an expense
incurred by the City unrelated to provision of the Food Services. Direct operating costs
also do not include Centerplate's "liability, etc." or costs under the Indemnity in
paragraph 9_5.
"Emergency Expenditure" means any expenditure to the extent not included
within an Approved Budget but which is necessary in the discretion of Centerplate to be
incurred to correct any condition that poses an imminent threat to public safety or
material damage to the Food Services or Food Service Premises.
"Event" refers to all events held at the Facility that are open to the public for
attendance, and include catered banquets, conventions, or other functions held in
accordance with an agreement with a Licensee at which Food Services are provided.
"Fiscal Year" means a pedod of time beginning on each August 1 and ending on
the immediately following July 31 during the Term, including any partial Fiscal Year.
"Food Products" means all food and beverages, and shall include without
limitation, alcoholic beverages, candy, tobacco, and con[ections, except that in the
event of the Anticipated Arrangement, "Food Products" will not include alcoholic
beverages, except where sold pursuant to a catedng permit.
"Food Services" means all food and beverage services to be provided
hereunder, including without limitation, dining, catering, hospitality, and concession
services, at or through fixed and portable concession stands, roving vendors, snack
bars, liquor bars, or any other areas at the Facility where Food Products are sold or
served, except that in the event of the Anticipated Arrangement, "Food Services' will not
include the sale or service of alcoholic beverages, except where sold pursuant to a
catedng permit.
"Food Service Premises" means all areas, improvements, fixtures, and trade
fixtures on the Facility's premises that are or may in the future be used in connection
with the operation of the Food Services, including adequate storage and office space,
as described in Exhibit "A" hereto. The Food Service Premises may not be changed
without the pdor written approval of the City, which shall not be unreasonably withheld
or delayed.
"Gross Receipts" means the total amount of money, rebates, discounts, credits
or other items of value received or receivable, directly or indirectly, by Centerplate or
any agent or employee of Centerplate from all sales, cash or credit, regardless of
whether the credit accounts or a portion of the accounts are collected (unless extended
at the insistence of the City), made as a result of the service dghts granted under this
Agreement, excluding sales taxes collected by Centerplate, or in the event of
prepayment of sales taxes, excluding any amount so prepaid by Centerplate. The total
amount of service charge that Is charged to any Licensee using the Facility is excluded
from the definition of Gross Receipts. The sale of any goods, food, beverage, or other
items that are retumed by the purchasers and accepted by Centerplate, excluding any
Page 5 of 41
sales tax, may be deducted from Gross Receipts. Net amounts receivable from
subcontractors of Centerplate under this Agreement shall be included in Gross
Receipts.
"Incentive Management Fee" means the Management Fee retained by
Centerplate according to Article 8 below.
"Ucensee" means a person or entity entedng into a written agreement to host an
Event at the Facility.
"Major User" means an entity or Event listed on Exhlbit"B", attached to this
Agreement, and Includes any professional sports team using the Facility as the site of
its home games, as well as any event traditionally held at the Facility whose use
thereof consists of more than thirty (30) days dudng any one Fiscal Year. The Parties
agree that Exhibit "B" may be amended from time to time by mutual agreement of beth
Parties.
"Management Fees" means those fees payable to Centerplate under Article 8
for providing the Food Services, and includes beth the Base and Incentive Management
Fees.
"Monthly Accounting Period" means each monthly pedod (or portion thereof)
in accordance with Centerplate's accounting calendar, which is arranged on a four-
week, four-week, five-week basis for each quarter, dudng the Term of this Agreement.
"Monthly Report" means the certified statement prepared by Centerplate, and
delivered to the General Manager, containing the following information: (a) Gross
Receipts by sales category; (b) product costs by sales category; (c) payroll costs; (d)
other Direct Operating Costs; (e) the amount of Net Profit; and (f) Management Fee(s)
retained by or paid to Centerplate.
"Net Loss" means an amount equal to the excess dudng a Monthly Accounting
Pedod of Direct Operating Costs over Gross Receipts, after deduction of the
Management Fees payable to Centerplate under Article 8.
"Net Profits" means an amount equal to the excess during a Monthly Accounting
Period of Gross Receipts over Direct Operating Costs (before the Incentive
Management Fee). In no event will the City receive Gross Receipts from the sale of
alcohol in an amount exceeding the amount permitted under TABC's Regulations. In
the event of the Anticipated Arrangement, Net Profits will include no funds from the sale
of alcohol except those sold pursuant to a catering permit.
"Net Sales" means the difference between Gross Receipts and Direct Operating
Costs.
"Operating Budget" means the Budget for Direct Operating Costs.
"Opening Date" means, for purposes of this Agreement, August 1, 2004. The
Page 6 of 41
parties anticipate that the Arena will be open on October 1,2004.
"Operating Period" means the pedod of time beginning on the Opening Date
and ending at the close of business on the date this Agreement expires.
"Original Arrangement" means the arrangement originally contemplated where
Centerplate would obtain the TABC permits and licenses necessary to serve alcohol at
the Facility, as described in Paragraph 2.4(g), and which would not involve the use of a
Separate Entity or the Anticipated Arrangement.
"Outside Caterers" means any outside caterer entering into an Outside Catering
Agreement with the City to provide Catering services at the Auditorium or the
Convention Center for a single event. The General Manager will negotiate all the
agreements and will promptly provide Centerplate with notice of any Event to be catered
by an Outside Caterer, as well as a copy of the Outside Catering Agreement, so that
Centerplate may facilitate the prevision of the services.
"Outside Catering Agreement" means the written agreement between the City
and an Outside Caterer, negotiated by the General Manager on behalf of a Licensee
who has specifically requested the services of an Outside Caterer for a single Event to
be held at the Auditorium or the Convention Center.
~Pre-Openlng Period" means the pedod of time beginning on January 1, 2004
and ending on the Opening Date.
"Prompt Payment Act" means Chapter 2251 of the Govemment Code in force in
the State of Texas.
"Reimbursable Expenses" excludes any Direct Operating Cost, and includes
expenses incurred by Centerplate, for which payment is made by Centerplate from its
own funds at the request of or as an accommodation to the City in connection with the
Food Services under this Agreement, to the extent (but no further) the expenses
incurred are provided for in an Approved Capital Budget or are incurred as part of an
Emergency Expenditure: for example, equipment and other items purchased for the
Food Service Premises at the City's request. Reimbursable Expenses shall be paid to
Centerplate no later than thirty days after the General Manager's receipt of an invoice
from Centerplate for the expenses, together with the necessary documentation.
"Smallwares' means dishware, glassware, flatware, utensils, and similar items
used in providing the Food Services.
"TABC Regulations" means: the Texas Alcoholic Beverage Code (the "Alcohol
Code"), including, but not limited to (a) the Texas Alcoholic Beverage Commission's
("TABC's') regulations under the Code, (b) TABC's prohibition on subterfuge ownership
and subterfuge corporations, as found in Tex. Alco. Bev. Code § 109.53 (2004), and (c)
the TABC requirement that all alcoholic beverages served at a facility be fumished by
an independent concessionaire in order to allow sponsorship agreements with members
of the distiller, manufacturer, distributor, or wholesaler tier, to promote, sponsor, or
Page 7 of 41
advertise an event or venue or promote or advertise an alcoholic beverage brand or
product at a facility, as found in Tex. Alco. Bev. Code § 108.75 (2004).
ARTICLE 2
Food Service Rights
2.1 Exclusive Rights Granted. The City hereby grants to Centerplate, subject to
the terms and conditions of this Agreement, including Paragraph 2.5 below, the
"Exclusive Right" to provide the Food Services and exclusively to use the Food Service
Promises at the Facility, subject to any limitations contained in this Agroement
concerning Catering at the Auditorium and Convention Center. With regard to the Arena
only, Centerplate Is granted the Exclusive Right to provide Catering services (which
includes provision of Catering, in Centerplate's sole discrotion, by means of
subcontracts between Centerplate and third-party caterers), dining, restaurant, vending,
and other services under this Agroement. To provide these services, Centerplate also
has the exclusive use of the new kitchen, commissary, and receiving area located at the
Arena. In addition to the preceding, Centerplate's Exclusive Right to provide Food
Services also includes:
a. Novelties, Programs, and Souvenirs. Subject to SMG's existing dght to sell
Novelties at the Facility, and specifically excluding the existing rights granted to SMG
under the Basketball License Agreement by and between SMG and the Board of
Trustees of Texas A & M University Acting on Behalf of Texas A & M University -
Corpus Christi, the City grants Centerplate the non-exclusive dght to sell novelties,
souvenirs, programs, records, tapes, clothing and gifts (collectively, "Novelties") at all
Events held at the Facility that aro open to the public for attendance and subject to an
admission charge. Centerplate shall have the dght to sell Novelties at private Events
such as conventions only in the sole discretion of the General Manager. The location of
the points of sale for Novelties for each Event whero the sales aro allowed will be
negotiated between Centerplate, the General Manager, and the Licensee for the Event.
b. Vending Machines. The City grants Centerplate the exclusive right to the
sale of Food Products from vending machines at the Facility, except that the City
reserves the dght to arrange for its own vending machines in all non-public areas of the
Facility. Centerplate and the General Manager will decide the locations, numbers, and
types of vending machines to be operated at the Facility.
c. Subcontractors_ Centerplate may, subject to the approval of the General
Manager, which will not be unreasonably withheld or delayed, use subcontractors in
providing the Food Services for the Facility. Subcontractors as contemplated by this
definition do not include Outside Caterers as defined elsewhere in this Agreement.
2.2. Exclusion from Exclusive Rights. The following shall be excluded from the
Exclusive Right to provide Food Services:
a. Fairs or Festivals. Food Services provided at fair or festival-type Events at
the Facility may be excluded if, in the opinion of the General Manager, the selling of the
items from booths is an important part of the Event. Additionally, the Exclusive Right to
L:~LsgaECo~pus Chr~.2.04 I~na~ (pialn).doc
Page 8 of 41
provide Food Services shall not prevent or prohibit an exhibitor from distributing without
charge a sample portion of the type of food or merchandise manufactured and
distributed In the normal course of the exhibitor's business, or from selling food items
intended for consumption off the premises.
b. Catering at the Auditorium and the Convention Center. Centerplate's non-
exclusive dght to provide Catering services at the Auditorium and the Convention
Center are subject to the provisions set forth in Paragraph 2.5 below. Licensees
entering into agreements with the City for Catering services at the Auditorium and the
Convention Center shall have the option to use Centerplate's services as Caterer, or to
request the services of a particular Outside Caterer. Licensees not expressing the
desire to use an Outside Caterer will use Centerplate for Catedng services, and the
General Manager will promptly inform Centerplate when its services will be required for
the Event, so that Centerplate may prepare for and provide Catering services.
c. Novelties. Centerplate's non-exclusive right to sell novelties is subject to
existing conb'actual dghts of third parties for novelties sales, as identified in Paragraph
2.1(a) above.
2.3 Reserved Rights. The City reserves the dght to:
a. Subject to Paragraph 2.5 below, to negotiate Outside Catedng Agreements,
through its General Manager, with Outside Caterers, if requested by a Licensee for a
particular Catered Event to be held at either the Auditorium or the Convention Center.
b. Grant permission for sample portions of food, beverages, and merchandise to
be given away at the Facilities by Licensees at Events_ The City is in no way and shall
not be obligated to Centerplate to force the samples to be distributed through
Centerplate.
c. Sell advertising space for either temporary or permanent signage. Centerplate
shall not engage in this activity in the Facility.
d. Subject to the other provisions of this Agreement, to approve the form and
appearance of containers, and the brand and pdce of products to be sold, and to require
that containers be suitable for consumption of the Food Products immediately after their
sale. Under no circumstance shall Centerplate reuse the containers after the sale of
Food Products.
e. To superintend sales, to the extent that sales shall be at and for a reasonable
length of time before and after the time of an Event, so as to ensure that the provision of
Food Services will not interfere with the conduct of the performance or function being
served. If Centerplate's method of operation or manner of exercising the Food Services
at a particular Event Interfere with or disrupt any performance in progress, Centerplate
will modify its method of operation to minimize disruption of the Event or performance,
as determined by the General Manager.
Page 9 of 41
f. To superintend the maintenance, cleanliness, and sanitation of the Food
Service Premises.
2.4 Alcoholic Beverages:
a. The sale of alcoholic beverages will be permitted from locations approved by
the General Manager and will be conducted in accordance with regulations established
by the City, its General Manager, and the TABC.
b. The Antlcll)ated Arrangement. The Parties originally desired that Centerplate
obtain and maintain the alcoholic beverage permits described in this Agreement, and
therefore be allowed to sell and serve alcoholic beverages at the Facility, but only in the
event that TABC approved the Odginal Arrangement_ However, the Parties agree that
the Anticipated Arrangement will be necessary and appropriate, and therefore either
Centerplate or the City will enter into an agreement with a Separate Entity, subject to,
consistent with and in furtherance of this Agreement, whereby the Separate Entity will
obtain the alcohol and beverage permit(s) otherwise required of Centerplate and
described in this Agreement. Therefore, dudng the intedm pedod between
commencement of this Agreement and commencement of the Anticipated Arrangement,
Centerplate will in good faith seek to obtain successive catedng permits to allow it to
serve alcohol at the Facility until commencement of the Anticipated Arrangement. The
express desire of both parties is that alcohol be served, if desired by the parties and
approved by the TABC, dudng the intedm peded of time pdor between commencement
of this Agreement and commencement of the Anticipated Arrangement. The purpose of
the Anticipated Arrangement is to create and organize a contractual and operational
structure that complies both with TABC Regulations and with the requirements
described in Section 7.9 below pertaining to the Bonds. To this end, pdor to the
Opening Date or in any event no later than February 1, 2005, the parties will negotiate
in good faith an amendment to this Agreement, confirming whether they have elected to
use the Anticipated Arrangement ("Confirmation") and, if so, identifying those provisions
of this Agreement which they agree are inconsistent with the Anticipated Arrangement
including (depending on the structure of the Anticipated Arrangement) certain Direct
Operating Costs related to the sale of alcoholic beverages and the requirement for
Centerplate to obtain and maintain a liquor license.
c. Centerplate, upon request, shall provide the City a copy of all agreements
entered into between Centerplate and the Separate Entity, if the Anticipated
Arrangement involves Centerplate contracting with a Separate Entity, and each of these
agreements shall provide that in the event the City terminates this Agreement with
Centerp[ate, the agreements between Centerplate and the Separate Entity are likewise
terminated or, at the City's request, assigned to a party designated by the City. The
City may contact the Separate Entity directly with respect to matters associated with the
services subject to the agreement between Centerplate and the Separate Entity.
Likewise, the City Manager, upon request by Centerplate, shall provide Centerplate a
copy of all agreements entered into between the City and the Separate Entity, if the
Anticipated Arrangement involves the City's directly contracting with the Separate
Entity. In that event, Centerplate may contact the Separate Entity directly with respect
to matters associated with any agreement between the City and the Separate Entity.
L:~egs~Co~L~S Ch~lJ~Jun,2.04 flnaJ (~aln).doc
Page 10 of 41
d. So long as Centerplate has acted in good faith pursuant to this Agreement,
none of the following will constitute an event of default by Centerplate under this
Agreement: (a) Centerplate's failure to obtain the alcoholic beverage permits described
in this Agreement; or (b) the Separate Entity's failure or refusal to enter into an
agreement with either Centerplate or the City; or (c) the Parties' Inability to enter Into a
Confirmation, as described in 2.4(b); or (d) Centerplate's failure to obtain a catedng
permit, as described in Paragraph (i) below, because of TABC's decision not to issue
the permit for an event; or (e) Centerplate's failure to sell or serve alcohol pdor to the
Separate Entity's commencement of alcohol sales, where the failure is for a reason
beyond the reasonable control of Centerplate; or (f) Centerplate's failure to sell or serve
alcohol after notice of termination of this Agreement but prior to the effective date of the
termination, where the failure is outside the reasonable control of Centerplate.
a. If, in Centerplate's sole discretion: (a) the agreements, amendments, or
modifications related to the Anticipated Arrangement shall materially increase
Centerplate's obligations under this Agreement or materially decrease Centerplate's
dghts (to income or otherwise) under this Agreement, or (b) the terms of an Anticipated
Arrangement have not been agreed upon by the February 1, 2005, then Centerplate
shall have the dght to terminate this Agreement on not less than ninety (90) days' prior
wdtten notice to the City or the City Manager's designee. Centerplate shall be paid all
Fee(s) accrued up to and through the effective date of any termination and, in the event
any of these Fees remains outstanding, the amount outstanding will be paid within thirty
(30) days of the effective date of the termination.
f. The Parties acknowledge the compensation structure of this Agreement and
agree that every endeavor will be made to honor the compensation structure of this
Agreement in any subcontract, amendment, or modification of this Agreement. The
Parties further agree that any subcontracts, amendments, or modifications to this
Agreement will not effect an increase in the amounts of compensation received by
Centerplate under the terms of this Agreement, unless further agreed to by the City in
wdting. In no event will Centerplate's Base Management Fee be less than the amount
described in Article 8 below.
g. Permits and Licenses to be obtained by Centerplate pursuant to the
Anticipated Arrangement:
(i) Centerplate shall obtain and maintain, as appropriate, as a Direct
Operating Cost, catedng certificate(s) as described in Section 2.4(b) abovefor
both the Arena and the Convention Center, and for any other areas of the Facility
which, by law, must be licensed (for example, liquor storage areas, if any, in the
Arena and the Auditorium). In addition, Centerplate shall obtain and maintain, as
a Direct Operating Cost, a caterer's permit for servlca of mixed beverages so that
alcoholic beverages may be served by Centerplate, when appropriate, in the
unlicensed portions of the Facility. All license(s) shall be obtained In a form
sufficient to enable Centerplate to operate for any Event, including those
occurring dudng extended hours.
L:~_egar~Corpus Chrls~Jun.2.04 Rnal (plaln).doc
Page 11 of 41
(il) The portions of the Convention Center and the Auditorium identified on
Exhibit "C" as unlicensed hereto will be left unlicensed, In any event, to enable
propedy licensed Outside Caterers to provide Catering services where alcoholic
beverages are served, if the services are within the scope of the applicable
Outside Catedng Agreement. Centerplate must obtain its own caterer's pen'nit
when serving alcoholic beverages at any unlicensed portion of the Facility.
Exhibit "C" additionally depicts in red the portions of the Facility which will be
licensed.
h. As stated in Section 2.4(b), Centerplate will make a good faith effort to obtain
the necessary catedng certificates, which shall be a direct operating cost, on an event-
by-event basis, to provide alcohol services at the Events held at the Facility until the
City and/or Centerplate contract with the Separate Entity to obtain the permits and
licenses necessary to serve alcohol at the Facility pursuant the Anticipated
Arrangement. If TABC refuses to issue the necessary catedng certificates, the City
shall make a temporary arrangement with an Outside Caterer to provide this service.
The City agrees to consult with Centerplate pdor to making the arrangement_
I. Alcoholic beverages may not be served at any Event:
(i) If the Licensee desires that no alcoholic beverages be served at the
Event; or
(11) If the General Manager determines that it is not appropriate for
alcoholic beverages to be served at a particular Event; or
(Ill)If any service of alcoholic beverages at the Event would result in
violation of any law or regulation.
(Iv) If the City Manager or the City Manager's designee determines that
it is not apprepdate for alcoholic beverages to be served at a particular Event.
j. All Centerplate employees who are involved in the serving of alcoholic
beverages must be certified through a TAM or ABC-approved program.
2.5 Catering. Centerplate is granted the Exclusive Right to provide Catedng
Services at the Arena (but excluding alcoholic beverage catedng in the event of the
Anticipated Arrangement); however, Catedng Services provided for Events held at the
Auditorium and the Convention Center may be provided by any reputable Outside
Caterer, provided that the Licensee has requested the Outside Caterer's services and
that the Outside Caterer enters into an Outside Catedng Agreement. A copy of the
Outside Catering Agreement will promptly be provided to Centerplate by the General
Manager. Provided Centerplate meets all requirements applicable to Outside Caterers,
Centerplate may serve as an Outside Caterer for an Event.
a. Catering by Outside Caterers at the Auditorium and the Convention Center
shall be on a single event basis, and Outside Caterers servicing multiple events will
enter into an Outside Catedng Agreement for each Event. The General Manager will
L:~Legal~Corpus ChrlsS~Jun.2,04 I~nal (plaln).doc
Page 12of41
promptly provide a copy of the agreement to Centerplate. The Catering of alcoholic
beverages in any unlicensed portion of the Auditorium or the Convention Center shall
be available to any reputable Outside Caterer (or to Centerplate, if it obtains a catedng
permit) possessing the appropriate license(s). Outside Caterers will be allowed to use
the old cetedng kitchen located in the Convention Center, so long as it is available for
use, and their use of any equipment belonging to the City is to be addressed in the
Outside Catedng Agreement.
b. When requested by the General Manager, Centerplate will facilitate the use of
Outside Caterers at the Auditorium and the Convention Center by assisting the General
Manager, which may include, but Is not limited to the following:
(I) the preparation of a standard Outside Catering Agreement to be used
by the General Manager on behalf of the City;
(il) obtaining of certificate(s) of insurance fTom Outside Caterers;
(ill)arranging for use of City-owned equipment if desired by an Outside
Caterer and addressed in the Outside Catedng Agreement;
(iv) inspecting the old catedng kitchen before and after an Event when
it is used by an Outside Caterer;, and
(v) collecting and accounting for equipment rental and catedng fees, which
will be turned over to the General Manager after each Event. Centerplate will not
be responsible for the funds once they have been propedy delivered to the
General Manager for delivery to the City.
c. With regard to Catered Events at the Auditorium and the Convention Center,
Centerplate will be the "default" caterer. The General Manager shall promptly provide
the following information to Centerplate:
(I) Events at the Auditorium or the Convention Center requiring
Catering services;
(11) whether Centerplate will be providing the Catering Services; and
(iil) If an Outside Caterer is to be used, a copy of the Outside Catedng
Agreement and the agreement with the Licensee for the Event.
d. If Centerplate is providing Catedng Services for an Event, Centerplate will
provide setup information to the General Manager as soon as is practicable in advance
of the Event. Since vadous Outside Caterers will provide Catedng services at the
Auditorium and the Convention Center, Centerplate will make specific arrangements to
use the old catedng kitchen located in the Convention Center, if Centerplate desires to
use the old catedng kitchen in providing Catedng services.
L:~Lege~Corpus Chrt~PJun.2.04 tlnal (plaln).d~3c
Page 13 of 41
2.6 Nature of Relationship. The Parties agree that the only relationship created by
this Agreement is that between the City, as owner of the Facility, and Centerplate, as an
independent contractor, for provision of Food Services, and that Centerplate is an
independent contractor, and is not an agent, employee, joint venturer or partner of the
City or of any Outside Caterer engaged under this Agreement.
2.7 Term. The term (the "Ten'n") of this Agreement begins with a Pre-Opening Pedod
from January 1, 2004, through July 31,2004; and the Ten'n continues with an Operating
Period from August 1, 2004 [the Opening Date]] through July 31, 2009 [five (5) years
after the Opening Date]. The Term expires at the close of business on July 31, 2009,
unless sooner terminated under other provisions of this Agreement. The City may, in its
sole discretion, offer to extend the Term, subject to reaching an agreement with
Centerplate as to the terms and conditions applicable dudng the extended Term
2.8 The General Manager_ Unless expressly stated to the contrary in this
Agreement, the General Manager shall act as representative, liaison, and contact
person between Centerplate and the City in all matters concerning this Agreement. The
City Manager has delegated its authority pertaining to this Agreement to the General
Manager, except with regard to approval of any Budget. The General Manager shall
have full power and discretion to act for and to bind the City in all matters conceming
this Agreement except for Budget approval and any other matters required to expend
funds. If Centerplate desires to do any act under this Agreement that requires the Cib/s
approval, Centerplate shall (notwithstanding any reference in this Agreement to the
"City") submit a request in writing to the General Manager. The General Manager shall
use reasonable efforts to respond to the request within ten (10) business days after
submittal. If the General Manager does respond and disapproves the request, the
General Manager shall set forth the reasons for the disapproval in writing_ Centerplate
and any other person dealing with the City in connection with this Agreement may rely
and shall be fully protected in relying on the authority of the General Manager to act for
and bind the City in any matter.
ARTICLE 3
RESPONSIBILITIES OF CENTERPLATE
3.1 Duties During Pre-Opening Period. During the Pre-Opening Pedod and subject
to the limitations of the Pre-Opening Approved Budgets, Centerplate shall perform the
following services (if the City requests Centerplate to perform a service not provided for
in the Pre-Opening Approved Budgets, or if Centerplate proposes to perform a service
not provided for in the Pre-Opening Approved Budgets, Centerplate shall not perform
the services until Centerplate and the City have agreed on the Reimbursable Expense
therefor, except in the case of Emergency Expenditures):
a. Work with the City to establish project goals, objectives, strategies, areas of
responsibility, and lines of communication;
b. Attend regular meetings as often as reasonably necessary to facilitate
communications and coordination of foodservice activities;
c. Review consulting reports prepared for the City;
Page 14 of 41
d. Assist in public relations activities;
e. Make Centerplate's public relations personnel reasonably available for press
conferences and other public appearances;
f. Disseminate to the General Manager monthly written reports concemlng the
marketing and operational efforts pertaining to the Food Services, in a mutually
agreeable format;
g. Submit Capital and Operating Budgets for the Pre-Opening and Operating
Periods, and supervise the procurement of all Food Service supplies and equipment for
the Facility, subject to applicable limitations of [he applicable Approved Budget(s);
h. Develop a comprehensive Food Service marketing plan and brochure and
begin implementing both the marketing plan and the brochure as soon as they are
approved by the General Manager,
i. Develop a comprehensive staffing plan, including job descriptions, and
identify, select, and train the Food Service staff;
j. Meet with Licensees who have scheduled events at the Facility after the
Opening Date, to determine their Food Service needs, and develop plans to meet [hose
needs, including the negotiation and execution of any contracts necessaq/to provide
those services;
k. Prepare to assume responsibility for the Food Service operation at the
Facilities in time for the Opening Date;
I. Prepare, recommend, and implement approved Food Service operating
policies and procedures, and assist the General Manager in developing rules to that
end;
m. Assist the General Manager and the City Manager or the City Managefs
designee in planning the dedication and opening ceremonies for the Facility;
n. Design and implement a financial accounting system for the Food Service
operation;
o. Coordinate the preparation and approval by the General Manager of Food
Service pdce schedules for the Facility. The City agrees to take into account
Centerplate's recommendations, as well as fees charged at similar public facilities.
surrounding the public facility Industry generally when considering the fees
recommended and submitted by Centerplate under this Agreement; and
p. Assist the General Manager in developing a contract for use with Outside
Caterers.
Page 15 of 41
3.2 Duties During Operating Period.
a. Centerplate shall conduct the Food Services so that all persons at the Facility
shall have a reasonable opportunity to purchase the Food Products sold at all Events
held at the Facility. It is understood and agreed by the Parties that it is not always
feasible to operate all of the Concession facilities for each and every Event held at the
Facility, and Centerplate shall have the dght not to operate one or more of the
Concession facilities at any Event held at the Facility, as Centerplata reasonably
determines to be appropriate for the efficient and cost-effective performance of Food
Services hereunder. Concessions shall be open and operational for every Event at the
Facility unless otherwise agreed by the Parties, and Centerplate shall operate
Concessions in the absence of an agreement with the City to the contrary.
b. Centerplate shall use its reasonable best efforts to operate the Concessions
services so that all customers at the Facility shall be promptly and satisfactorily served
the Food Products sold by way of Concessions. All Food Products sold by Centerplate
in providing the Food Services shall be of the highest standard of quality and purity, and
shall be appropriately prepared and appropriately served. All Food Products and Food
Services shall conform to all requirements of applicable federal, state, county, and
municipal laws and ordinances.
c. The brands and pdces of all products sold by Centerplate shall be determined
by City in advance in a manner consistent with the requirements of all applicable
federal, state, county, and municipal laws and ordinances and at the standard of quality
customarily in comparable venues. If Center'plate determines that a particular brand of
products is not reasonably competitive in price and quality when compared with other
similar brands, but City still desires to use the brands, Centerplate's obligation to sell
that particular brand of products at the Facility shall be subject to the Parties' agreement
on an adjustment to the financial arrangements, set forth in Article 4, so that
Centerplate's sale of that particular brand of products will not have a materially adverse
financial effect on Centerplate's operations at the Facility.
d. Unless otherwise agreed between the parties, Centerplate, as a Direct
Operating Cost, shall procure and maintain dudng the Term of this Agreement all
appropriate licenses and pen'nits which may be required for the operation of the Food
Services; provided, however, that the City shall provide Centerplate with the assistance
as it shall reasonably request in connection with any application by Centerplate for any
license or permit, or the renewal thereof.
e. The City shall not take, and shall use its reasonable best efforts not to permit
any other person, firm or entity to take, any action that is inconsistent with, or would
constitute a violation of, any of the terms and conditions of Centerplate's on-site liquor
license for the Arena, or any other license or permit obtained by Centerplate in
connection with the operation of the Concessions hereunder.
f. Centerplate shall pay and discharge when due all sales, use, excise and
other taxes imposed on Centerplate's sales of all Food Products and Food Services at
the Facility.
Page 16 of 41
g. Centerplate, as a Direct Operating Cost, shall him all employees reasonably
necessary to conduct the Food Services. On being hired, the employees shall be
subject to any and all legal requirements in connection with the employment by
Centerplate. All persons hired by Centerplate shall be employees of Centerplate and not
employees of the City. Centerplate shall comply with all applicable federal, state,
county, and municipal laws and ordinances pertaining to wages and hours of
employment for all its employees at the Facility. Centerplate shall not discriminate
against any employee or applicant for employment because of race, creed, sex, color,
national origin, age, or disability in violation of any applicable federal, state, county, or
municipal law or ordinance; provided, however, that the City hereby acknowledges and
agrees that a successful claim by any employee or applicant under any law or
ordinance specified in this Article shall not be considered a breach or default by
Centerplate under this Agreement.
h Centerplate, as a Direct Operating Cost, shall at all times maintain the Food
Service Premises in a neat, clean, and sanitary condition. Employees of Centerplate
shall deposit trash and garbage resulting from the Food Services into suitable
containers provided by the City for waste removal. The City shall make all arrangements
for the collection of waste products from the Facility.
I. Centerplate, as a Direct Operating Cost, shall be responsible for repairing and
maintaining all Food Service equipment, including cleaning supplies, used in the
operation of the Food Services as well as Intedor areas the Food Service Premises.
Centerplate, as a Direct Operating Cost, shall provide all uniforms for its employees,
subject to the prior wdtten approval of the City as to quality, design, and color of the
uniforms, which approval will not be unreasonably withheld or delayed.
J. Centerplate, as a Direct Operating Cost, shall provide sufficient managerial
and customer service personnel to provide first class Food Services at the Facility.
k. Centerplate shall keep all records relating to the Food Services on file by
Centerplate for a period of two {2) years following the end of the Fiscal Year to which
they apply, including the last Fiscal Year of the Term. Centerplate shall maintain
suitable books of account, showing top-line sales and all commissions payable to the
City hereunder, for Food Services at the Facility, and the books shall be available for
inspection by the City and the General Manager dudng regular business hours, upon
reasonable advance notice to Centerplate. The City and the General Manager shall
make reasonable efforts to ensure that the inspection shall not interfere with
Centerplate's operation of the Food Services.
I. Centerplate agrees that its employees and agents will comply with and
observe all rules ccnceming conduct of its employees at the Facility which the City may
from time to time Impose on the City's employees and agents at the Facility, subject to
restrictions imposed on Centerplate by any federal, state or local statute, law, code or
regulation, or by any collective bargaining agreement or other contract affecting the
employee or agent; provided, however, that the City hereby acknowledges and agrees
that Centerplate shall not be considered in breach or default of this Agreement despite
Page 17 of 41
Centerplate's reasonable best efforts to ensure compliance, one or more of its
employees or agents fails to comply with any rule or regulation.
m. At all times dudng the Term of this Agreement, Centerplate shall maintain its
practices of employment and services to the patrons of the Facility in full compllanca
with all applicable federal, state and local laws, regulations and govemmental orders.
Centerplate hereby acknowledges and agrees that the City, its affiliates, parents,
subsidiaries, employees, agents, directors, officers, owners, and any person or entity
associated therewith.
n. Subject to the limitations on Centerplate's authority under this Agreement,
and subject to the limits of any Approved Budget, Centerplate shall exercise its diligent,
good faith efforts in managing and operating the Food Services at the Facility so as to
minimize Direct Operating Costs and to maximize Gross Receipts, while maintaining a
level of service that is satisfactory to the City.
o. As a Direct Operating Cost, Centerplate will advertise, promote activities,
market, and conduct public relations for the Food Services_ Centerplate covenants and
agrees, subject to the reasonable consent of the City, to develop all Intellectual property
dghts required for the advertisement, promotional activities, marketing, and public
relations for the Food Services, the cost of all of which shall be a Direct Operating Cost.
p. Subject to the limitations set forth in this Agreement, Centerplate shall do the
following (or cause the following to be performed) throughout/he Operating Period:
(i) Manage and operate the Food Services at the Facility in a manner that
will promote and further the purposes for which the Facility exists, as set forth in
the Recitals to this Agreement;
(11) Negotiate, execute, and perform contracts, use agreements, licenses
and other agreements for food and beverage services with persons who desire to
schedule Events at the Arena ("Licensees");
(Ill)Negotiate contracts for and operate at and for the Facility, concerning
the sale of Food Products and Novelties, as allowed under this Agreement;
(iv) Plan, coordinate, and administer the Food Service operation at the
Facility and continue to identify, select, and train the Food Service staff;
(v) Retain legal counsel in connection with the discharge of its duties
hereunder (to the extent, and no further, Centerplate considers it appropriate in
its sole discretion) and cause the counsel to coordinate with the City's legal
counsel where necessary or appropriate. Centerplate acknowledges that the
City's legal department or outside legal counsel shall at all times represent the
interests of the City;
(vi) Coordinate the work of all parties performing work in connection
with the Food Services. This includes facilitating services provided by Outside
L:'J_agaACorpua Ci~lsU~Jun.2.94 6r, N (platn),d~;
Page 18 of 41
Caterers and collecting the Catedng fees on behalf of the City from Outside
Caterers, and delivering the fees collected to the General Manager for delivery to
the City.
(vii) Monitor actual and projected Direct Operating Costs and advise the
City if projected Direct Operating Costs exceed the amounts set forth in the
Approved Budgets;
(viii) Furnish all Food Services, personnel, materials, tools, machinery,
equipment and other items necessary to accomplish the foregoing requirements
of this Agreement;
(Ix) Devise and implement procedures (including preventive and
predictive maintenance procedures) reasonably designed to keep the Food
Service equipment at the Facility in reasonably good order and condition, subject
to ordinary wear and tear, and maintain the Food Service Premises at the Facility
in the same order and condition; and
(x) Not create, assume or suffer to exist any mortgage, pledge, lien,
charge or secudty interest or other encumbrance of any nature whatsoever
relating to this Agreement, or its dght and obligations under this Agreement,
except any pledge or other encumbrance of the Management Fees due
Centerplate under this Agreement; and
(xi) Promptly and fully discharge and pay all of its obligations under this
Agreement at or before the time specified for performance or payment thereof,
including without limitation, the payment of all Direct Operating Costs.
Centerplate shall have the dght to contest its obligations to make payments to
third parties so long as (a) Center'plate does so in good faith, diligentJy and by
appropriate proceedings, and (b) the contest does not subject the City to any
potential civil or cdminal liability or constitute a breach of any law, rule, code, or
regulation applicable to the City.
3.3. Compliance with the Law. Centerplate shall comply with all applicable laws,
rules, regulations, ordinances relating to the use and operation of the Food Services
and the employment of persons in providing the services. Centerplate shall perform its
obligations hereunder in good faith. If compliance with applicable laws, rules,
regulations, or ordinances with regard to the condition of the Facility requires funds not
provided for in an Approved Budget and the City refuses to consent to amendment of
the Approved Budget providing for expenditure of funds necessary to cause the Facility
to comply with the applicable laws, rules, regulations, or ordinances, then Centerplate
may terminate this Agreement on ninety (90) days' pdor written notice to the City (which
notice shall describe with specificity the applicable laws, rules, regulations, or
ordinances violated and the actions needed to remedy the violations) if (a) the failure to
comply with the applicable laws, rules, regulations, or ordinances subjects Center'plate
to potential civil or cdminal liability, and (b) the City fails, within the ninety (90) day
pedod, to provide the funds necessary to correct the violation.
Page 19 of 41
3.4 No Construction or Design Responsibilities. Notwithstanding Centerplate's
review of and recommendations in respect to the Facility's design, plans, and
specifications, Centerplate will have no responsibility to the City or to any other person
or authority for or conceming the final plans and specifications for Ihe Facility, and will
not supervise, warrant, or be responsible in any manner for the construction of any
portion of the Facility. The Parties understand and agree that Centerplate shall not be
responsible for the design of the Facility; the selection of architects, building contractors,
subcontractors or suppliers; the prosecution of construction of the Facility; the
compliance of the construction with the plans and specifications for the Facility, or
applicable law, rules, regulations, or codes; the completeness, adequacy, accuracy,
reasonableness, or appropriateness of those plans or specifications; or otherwise with
respect to the construction of the Facility. The City acknowledges that Centerplate's
recommendations are based solely on its practical experiences in the operation of Food
Services at facilities similar to the Facility. The City agrees to look to the building
contractor, subcontractors, architects, engineers, and other design professionals for all
matters related to the design and construction of the Facility and not to Centerplate.
3.5 Funding Limitations. The City recognizes and agrees that performance by
Centerplate of its responsibilities under this Agreement is limited by the Approved
Budgets and approved Emergency Expenditures.
ARTICLE 4
RESPONSIBILITY OF cI'rY
4.1 The City, at no expense to Centerplate, shall provide Centerplate with the
necessary space and access thereto to conduct the Food Services including
storage/warehouse space, offices, a check in/out cash room, loading areas and parking
facilities for Centerplate's employees.
4.2 The City shall, at no expense to Centerplate, provide Centerplate with the
necessary equipment and facilities in good order and repair, to conduct the Food
Services including, without limitation, the equipment and facilities associated with the
storage, preparation, and sale of Food and other Products at the Facility. Title to the
equipment and facilities, at all times, shall remain vested in the City. Notwithstanding
the foregoing, any equipment furnished by Centerplate in connection with providing the
Food Services at the Facility shall remain the property of Centerplate, which shall be
entitled to remove the equipment at the end of the Term, provided no damage is done to
the City's property in effecting the removal.
4.3 The City or the other party as may be required by lease or other binding
agreement, but in any event not Centerplate, shall, at no expense to Centerplate,
furnish utilities, refuse disposal and utility distribution systems necessary to operate the
Food Services. The City shall maintain, repair, and replace the roofs and all extedor
walls of the Food Se~ce Premises.
4.4 The City or the other party as may be required by lease or other binding
agreement, but in any event not Centerplate, shall be solely responsible for all real and
personal property taxes applicable to all parts of the Facility, including, without
Page 20 of 41
limitation, all personal property and possessory interest taxes, if any, applicable to the
City's equipment used in connection with the Food Services.
4.5 The City, at no cost to Centerplate, will promote activities, marketing and conduct
public relations for the Facility.
ARTICLE 5
RECORDS, ACCOUNTS AND REPORTS
5.1 Books. Centerplate shall maintain at the Facility books of account with respect to
its management and operation of the Food Services, in accordance with generally
accepted accounting principles and food service industry standards. Centerplate shall
maintain the books and records for b, vo (2) years following the expiration or sooner
termination of this Agreement.
5.2 Access to Information. The City shall have the unqualified right to obtain from
Centerplate, the information and to inspect and audit the books and records conceming
the management and operation of the Facility. The City will provide advance notice to
Centerplate, and will access information with minimal interference to the operation of
the Food Services.
5.3 Annual Audit. As soon as practicable at the close of each Fiscal Year,
Centerplate shall furnish to the General Manager, In a mutually agreed-on format, an
"Annual Report" of the results of the Food Service operations for the previous Contract
Year, prepared in accordance with generally accepted accounting principles. The
annual report shall include the following information with respect to the Food Services:
Gross Receipts by sales category; product cost by sales category; payroll costs; other
Direct Operating Costs; calculation of Net Profits delivered to the General Manager;, and
calculation of the Base and Incentive Fees. An independent certified public accounting
firm of national reputation shall prepare the Annual Report. Centerplate shall provide
written notice to the City of its selection of the accounting firm to prepare the Annual
Report, and the General Manager shall have r~een (15) days following receipt of the
notice to approve or disapprove of the accounting firm selected by Centerplate, which
approval shall not be unreasonably withheld or delayed. The cost of the Annual Report
shall be a Direct Operating Cost, unless the Annual Report indicates that the total Net
Profits in the applicable Fiscal year were understated by more than three (3%) percent,
in which event: (a) Centerplate shall deliver to the General Manager the additional Net
Pro£~s due, and (b) the cost of that Annual Report shall not be a Direct Operating Cost.
5.4 Monthly Reports. No later than the 20m day following the end of each Monthly
Accounting Pedod, Centerplate shall prepare and deliver (together with the Net Profit) to
the General Manager a statement, certified by Centerplate's Authorized Representative,
containing a calculation of the following information pertaining to the immediately
preceding Monthly Accounting Period: (a) Gross Receipts by sales category; (b) product
costs by sales category; (c) payroll costs; (d) Direct Operating Costs; (e) the amount of
Net Profit; (f) Management Fee(s) retained by or paid to Centerplate; and (g) Infusions
of working capital.
L:\Lega~C4:)q)us ChmisU~Jun.2.04 finn (plaln).doc
Page 21 of 41
5.5 Capital Improvements Budget. Centerplate has submitted to the City for its
approval a good faith Capital Budget for the Pre-Opening Pedod. Thereafter
Centerplate will submit a proposed Capital Budget no later than one- hundred-twenty
(120) days before the end of each Fiscal Year (including any partial Fiscal Year). This
Budget shall be subject to the procedures customarily employed in connection with the
development, approval, and implementation of similar capital budgets for the City, and
shall be subject to the approval of the City in all cases.
5.6 Annual Operating Budget. Centerplate has submitted to the city for its
approval an Operating Budget for the Pre-Opening Pedod, attached hereto as Exhibit
~D". All Items included in the Approved Operating Budged for the Pre-Opening Pedod
shall be reimbursable as Direct Operating Costs from Gross Revenues. Thereafter,
Centerplate shall prepare and submit to the City Manager or the City Manager's
designee a proposed, good faith annual Operating Budget within six (6) months before
the City's Operating Budget listing all anticipated Gross Receipts and anticipated Direct
Operating Costs for the Fiscal Year by category. Centerplate may, at any time, submit
to ~he City for its approval amendments to the City's Operating Budget, to reflect
unanticipated revenues, expenses, or other changes. The City will not unreasonably
condition, delay or withhold its approval of the proposed changes to the Operating
Budget, and may in seek, in its sole discretion, an amendment to the City's Operating
Budget for any amount not included therein, which Centerplate has submitted, but which
has not yet received approval. The City Manager will include Centerplate's requested
Operating Budget in the City's Fiscal Year process, and will make a good faith effort to
obtain approval of the proposed Budget.
5.7 Budget Approval. The City Manager or the City Manager's designee shall
promptly review all proposed Budgets and amendments thereto and promptly
communicate to Centerplate any comments or suggested revisions thereto. The City
Manager or the City Manager's designee shall, in any event, complete its Budget review
and deliver its comments in accordance with the City's budget calendar. Final approval
of any Budget shall, except for amendments thereto that are not material, be completed
in accordance with procedures applicable to the general City budget which is to be
adopted by July 31 of each Fiscal Year. In the event a proposed Budget has not been
approved in a manner which permits its incorporation into the general City budget for
general City budget approval on or before July 31, the Budget for the previous Fiscal
Year shall continue to control, except that the portions thereof relating to salaries,
wages, and benefits included as part of Reimbursable Expenses shall be considered
increased by an amount equal to the increase in the Index (defined below) on the first
day of the period over the Index in effect as of the same day of the immediately
preceding year. Each Operating Budget, once approved in wdting by the City, and each
Capital Budget, once approved in wdting by the City, shall constitute an "Approved
Budget." Centerplate shall operate and manage the Food Service operation at the
Facility in accordance with the Approved Budget(s), and in no event (other than in
connection with an Emergency Expenditure) may Centerplate incur costs or expenses
in excess of the amounts included in the Approved Budget(s), except as otherwise
provided for in Paragraph 7.7 below.
Centerplate recognizes that approval of the Budgets shall be made or withheld
L:q. egar~Corpua Christi~Jun.2.04 nr~l (l~ain),doc
Page 22 of 41
by the City in the City's reasonable discretion, but the City does agree to make a good
faith effort to obtain Budget approval, and consideration of any amendments reasonably
requested by Center'plate.
The base for computing the adjustment described in the opening paragraph of
this Paragraph is the Consumer Pdce Index for all Urban Consumers (base year 1984 =
100) for the United States, published by the United States Department of Labor, Bureau
of Labor Statistics ("Index"). The Index published most immediately preceding the
adjustment date in question ("Interim Index") is to be used in determining the amount of
the adjustment. If the Interim Index has increased over the Index as of the date the
previous Approved Budget was approved (the "Initial Index"), the po~on of the
operating Budget to be adjusted as provided for in the opening paragraph of this
Paragraph shall be set by multiplying the then applicable base by a fraction, the
numerator of which is the Interim Index and the denominator of which is the Initial Index.
If the Index is changed so that the base year differs from that in effect as
provided the Index shall be converted in accordance with conversion factor published by
the United States Department of Labor, Bureau of Labor Statistics. If the Index is
discontinued or revised dudng the Term, the other government index or computation
with which it is replaced shall be used to obtain substantially the same result as would
be obtained if the Index had not been discontinued or revised.
5.8 Estimated Budgets. Each Approved Budget shall reflect estimated receipts and
expenditures, based on Centerplate's good faith judgment, and may be predicated on
the assumptions set forth therein with regard to the matters described in this Article_ If
the assumptions regarding Gross Receipts are overstated for any reason other than
Centerplate's default under this Agreement, the Parties agree to promptly meet and
attempt to agree on proposed amendments to the Budgets.
ARTICLE 6
WORKING CAPITAL
Centerplate shall fumish its own working capital sufficient to cover accounts
receivable, inventory, petty cash, start-up costs and tills adequate to serve the patrons
of the Food Service Premises.
ARTICLE 7
POWER AND FUNCTIONS
7.1 Authority of Centerplate. Centerplate shall have the right and authority to
exercise all rights, powers and duties conferred or imposed on it under this Agreement.
7.2 No Sale of Property. Centerplate shall have no authority to sell or otherwise to
alienate any portion of the Facility or any Facility equipment belonging to the City.
7.3 No Capltsl Improvements. Centerplate shall have no authority to make any
alterations or any capital improvements to the Facility without the prior written consent
of the City Manager or the City Manager's designee. Capital improvements reflected in
an Approved Budget shall be considered approved by the City, but are conditioned on
L;\Legal~Coq~m Chrlsfl~Jun.2.04 final (lflaln).doc
Page 23 of 41
Centerplate's obtaining all City permits, consents, and the City Engineer's approval of
all plans and specifications, which approval shall not be unreasonably withheld or
delayed.
7.4 Contracts. Centerplate shall have no authority, without the pdor written consent
of the City, to enter Into any contract for the provision of goods and services to the
Facility. except as described in this Agreement, extending beyond the expiration of the
Term_ All contracts, including subcontracts with third-party caterers at the Arena, shall
be entered into by acknowledging that the contracts are subject to the City's reasonable
approval. All contracts entered into by Centerplate shall provtde that the same are
assignable to a party designated by the City and, notwithstanding any contrary provision
hereof, on termination or expiration of this Agreement for any reason, and in that event,
Centerplate shall assign to a party designated by the City, and the party designated by
the City shall assume in writing, all then outstanding contracts affecting the Food
Services, which have been entered into by Centerplate under this Agreement; provided,
however, that the City shall not be obligated to assume any contracts or agreements
entered into by Centerplate which are in violation of this Agreement.
7.5 Employees.
a. Centerplate shall hire all employees needed to operate and manage the Food
Services_ Employees hired by Centerplate shall be employees of Centerplate and not of
the City, although the employment costs of the employees (including, without limitation,
wages, salary, benefits, and the costs of complying with local, state, and federal
employment laws) shall be part of the Direct Operating Costs. Centerplate shall have
complete and absolute discretion and authority with respect to the number, functions,
qualifications, compensation and other terms and conditions relating to its employees.
b. The City shall have the right (but not the obligation) of reasonable approval of
the individuals (and their successors) proposed by Centerplate for the following Facility
positions: Foodservice Director, Concession Manager, Catedng Manager and Head
Chef, to the extent the positions are created with regard to the Food Service operations
at the Facility. Furthermore, Centerplate will not, before the second anniversary of the
Opening Date, re-assign the Foodservice Director to other facilities managed or
operated by Centerplate without the prior consent of the City, which shall not be
unreasonably withheld or delayed. Dudng the 3r~ to 5b~ year of this Agreement,
Centerplate shall not, in any year dudng the Term of this Agreement, re-assign more
than two (2) of the personnel listed to other Centerplate venues without the pdor
consent of the City Manager or the City Manager's designee, which approval will not be
unreasonably withheld or delayed.
c. The City covenants and agrees that it shall not, dudng the Term hereof or for
a pedod of 18 months following termination or expiration of this Agreement hire, employ,
solicit for hire, or engage in any manner or for any purpose, any person who has
served as Foodservice Director.
7.6 Purchase of Supplies and Services. Centerplate shall have full authority and
discretion as to the purchase of all materials, supplies and inventories reasonably
L:~Le~a~C~rpus Ch~lsU~Jun.2.04 final (pialn).doc
Page 24 of 41
required by it in furtherance of this Agreement, but shall endeavor to make all the
purchases at the best pdce available to it, considering the quantities required and the
quality desired, at the time available for delivery and whenever possible as part of a
volume pumhase by Centerplate. With respect to the purchase of all equipment related
to this Agreement, Centerplate shall utilize the same competitive bidding process used
by the City in the purchase of equipment costing more than $25,000, Notwithstanding
the procedures, Centerplate shall not be obligated to accept the lowest bid, but shall be
entitled to take into account, in the award of any bid, the quality of the service or product
and award the contract required. All purchases by Centerplate of furniture, fixtures,
equipment, and all capital improvements shall be made on behalf of the City, and
Centerplate shall establish an inventory control system to account for all purchases
made on behalf of the City, which information will be provided to the City together with
the Annual Report for each Contract Year.
7.7 Expenditures In Excess of Budget. Centerplate shall not, without written
authorization by the City, incur in the aggregate during any Contract Year obligations for
Direct Operating Costs exceeding the total amount of Direct Operating Costs set forth in
the Approved Budget, except for. (a) Emergency Expenditures, and (b) expenses for
services provided by third parties in connection with the Food Services, the cost of
which was not within the reasonable control of Centerplate, such as (by way of
illustration but not limitation) the cost of utilities, insurance and necessary and
reasonable expenses which vary with increases in revenue generation and Facility
usage. Centerplate shall have the right, however, to expend savings achieved in any
line item of an Approved Budget (in an amount not less than ten (10%) percent and not
more than fifteen (15%) percent of the line item, which savings, within the range, must
be agreed on between the City and Centerplate) to offset any overruns in other line
items of the same Approved Budget. If Centerplate incurs any expense not provided for
in the Approved Budget, (excluding Emergency Expenditures and the exceptions
described above in this Paragraph), and the City Manager or the City Manager's
designee has not approved the expenses, Centerplate shall be responsible for the
excess expenditure, which will not be a Direct Operating Cost.
Centerplate is entitled to make Emergency Expenditures up to an amount agreed
by the parties (but in no event less than $15,000 or more than $25,000) per item,
without the prior approval of the City_ If any Emergency Expenditure exceeds the
agreed maximum amount, Center'plate shall submit the Emergency Expenditure request
to the City Manager or designee, for the City's wdtten approval, which will not be
unreasonably withheld or delayed. The City agrees to respond to any request of
Centerplate for an Emergency Expenditure within 24 hours from the receipt of the
request or within the lesser time as is appropriate under the circumstances.
7.8 Settlement of Claims. Centerplate has been advised by the City (and the City
shall continually keep Centerplate apprised of) the City's procedures and requirements
with respect to settlement of third-party claims filed against Centerplate (to the extent
related to the Food Services), the City, or with respect to the Food Services.
Centerplate and the City agree to cause their respective legal counsel to coordinate with
one another in connection with the settlement of any claims involving the Food
Services.
L:%ega~Corpus C~I~lstJ~IL~.2.04 final (plaln).dc)c
Page 25 of 41
7.9 Bond Financing. Centerplate acknowledges that the Facility is and may be
further financed with the proceeds of the Bonds, the interest on which is or will be
excludable from the bondholder's gross income for federal income tax purposes under
Section 103 of the Code. To assist the City in preserving the tax-exempt status of the
Bonds (the Ck']/hereby agreeing that Centerplate has no responsibility to the City or to
any other party if the tax treatment of the Bonds should be different from the treatment
desired or intended by the City), Centerplate acknowledges and agrees as follows:
a. In determining whether to grant or withhold any approval of a matter for which
approval of the City is required under this Agreement, the City may consider the effect
of the approval, on the tax-exempt status of the Bonds.
b. Each of the following described types of contracts must be approved by the
City before execution thereof:
(i) Any contract relating to the Food Service Premises which grants a
leasehold interest, term for years, or other real estate interest In the Facility
(other than a revocable license), or grants a long term dght to use the Facility on
a basis different from that of the general public.
(il) Any contract for the use of the Facility for shows, programs,
conventJons, and other events unless (1) the term of the contract, including all
renewal options, is not longer than 50 days; (2) the contract is at arm's length
and the fee for use under the contract is at either fair market value or on the
basis of rates established by the City that are generally applicable and uniformly
applied; and (3) the contract acknowledges the Facility was not financed for the
principal purpose of providing use of the Facility to the user under the contract.
Further, the dght of the user to the Facility under the contract is that of a transient
occupant rather than one with a full legal possessory interest in the Facility,
either as a lessee or an owner.
c. If Centerplate is given written confirmation by bond counsel to the City that
either an amendment or termination of this Agreement is necessary for (1) this
Agreement to be, in the opinion of bond counsel, a qualified management contract for
purposes of Intemal Revenue Service Revenue Procedure 97-13, 1997-1 C.B. 632, or
(2) the issuer of the Bonds to comply with its covenant in the documents relating to the
Bonds to take action to assure that amounts received by either the City or the issuer
with respect to pdvate business use of the Facility do not directly or indirectly secure or
provide for the payment of more than 10 pement of the debt service on the Bonds in
contravention of Section 141(b){2) of the Code, the parties will negotiate in good faith an
amendment of this Agreement in order to comply with the foregoing requirements, to the
extent reasonably necessary. However, if in Centerplate's sole discretion the
modifications shall materially Increase Centerplate's obligations under this Agreement
or materially decrease Centerplate's dghts (to income or otherwise) under this
Agreement, then Centerplate shall have the dght to terminate this Agreement on not
less than ninety (90) days' pdor written notice to the General Manager and the City
Manager, or designee. If Centerplate timely exercises its dght of termination under this
Page 26 of 41
Article, it shall continue to perform in good faith its obligations under this Agreement
through the date of termination, and the City shall continue to pay Centerplate in
accordance with this Agreement for all amounts accruing through the date of
termination. After the date of termination, neither party shall have any obligations
accruing thereafter, except with respect to obligations otherwise surviving the expiration
or termination of this Agreement.
ARTICLE 8
FEES AND EXPENSES
8.1 Collection of Gross Receipts. Centerplate shall be responsible for collecting
Gross Receipts. Immediately upon collection, Centerplate shall deposit all Gross
Receipts in a Depository Account to be held by Centerplate subject to the terms of this
Agreement. Centerplate shall have authority to withdraw proceeds from the Depository
Account. Moneys in the Depository Account and any interest thereon must be applied
first to the payment of Direct Operating Costs and then to Management Fees accrued.
Any balance will be retained in the Depository Account as reserve for payment of future
Direct Operating Costs according to the approved Operating Budget. If, at the end of
any Contract Year, there is a balance in the Depository Account in an amount in excess
of the anticipated Direct Operating Expenses for the first month of the ensuing Fiscal
year, Centerplate shall disburse the excess to the City on or before the twentieth (20th)
day following the Monthly Accounting Pedod in which the Net Profits were realized.
8.2 Payment of Fees. Centerplate shall have the authority and responsibility to pay
all Direct Operating Costs from Gross Receipts by the twentieth (20~) day following
each Monthly Accounidng Pedod in which the Direct Operating Costs were incurred and,
subject to the other provisions of this Agreement, any Emergency Expenditures.
8.3 Net Profits. Centerplate shall disburse to the General Manager monthly the
amount of the Net Profits for the immediately preceding Monthly Accounting Period_ If
there are no Net Profits for a Monthly Accounting Pedod so that Direct Operating Costs
for the Monthly Accounting Pedod are not paid in full, the amount of the unpaid
obligations shall be carried forward, without interest, and deducted from future Net
Profits.
8.4 Net Loss_ If there is a Net Loss in any Monthly Accounting Peded, the amount of
the Net Loss shall be carded forward and applied against future Net Profits. At the end
of the Term of this Agreement, the City shall reimburse Centerplate for any
unreimbursed Direct Operating Costs, Reimbursable Expenses, and unpaid
Management Fees, within thirty (30) days after the effective date of the termination or
expiration.
8.5 Pre-Opening Period Fees. For services performed by Centerplate under this
Agreement during the Pre-Opening Period, the City shall pay to Centerplate a Pre-
Opening Fee of $3,500 Dollars per month beginning effective (and if later approved,
retroactive to) January 1, 2004 and ending on the Opening Date. Any Pre-Opening Fee
for a partial Monthly Accounting Period shall be prorated. The Pre-Opening Fee is
based on the list of estimated expenses Centerplate provided to the City in
L:~e~s~Co~us ChristJ~JL~r~2.04 final (plain).doc
Page 27 of 41
Centerplate's memo of September 26, 2003, attached hereto as Exhibit "D", and is
intended to compensate for Centerplate's expenses dudng the Pre-Opening Pedod.
This Pre-Opening Operating Budget shall be approved by the City at the same time as
the approval of this Agreement. Centerplate may re-allocate amounts from any line
item of the Approved Pre-Opening Operating Budget to other line items within the same
Approved Budget (up to, with respect to any one line item, an amount not less than 10%
or more than 15% of the line item, the percentage within the range to be agreed
between the City and Centerplate); however, Centerplate shall immediately give prompt
wdtten notice of any re-allocation to the General Manager.
8.6 Operating Period Base Management Fee.
a. In consideration for providing the Food Services dudng the Operating Period,
Centerplate will be paid a yearly management ~'ee (the "Base Management Fee") of
$104,000, which shall be paid in twelve monthly installments of $8,666.67, no later than
the twentieth (20~h) day of each Monthly Accounting Pedod. The Base Management Fee
shall be considered earned as of the first day of each Monthly Accounting Pedud of the
Term, but shall be due and payable in arrears in the immediately following Monthly
Accounting Pedod, the payment to be retained by Centerplate within the time peduds
prescribed by the Prompt Payment Act_
b. In the event of the Anticipated Arrangement and only if Centerplate is
engaged by the Separate Entity to manage the alcoholic beverage services, then the
$104,000.00 Base Management Fee in this Agreement shall be reduced (effective as of
the first Monthly Accounting Pedod after commencement of the agreement between
Centerplate and the Separate Entity governing the Anticipated Arrangement) to
$69,680.00 so long as the Separate entity agrees in wdting to pay $34,320.00 to
Centerplate as a management fee for management of the alcoholic beverage services
rendered for the Separate Entity.
8.7 Incentive Management Fee. In addition to the Base Management Fee described
in Paragraph 8.6 and subject to the provisions of the balance of this Paragraph,
Centerplate shall be allowed to retain, annually in arrears, on or before the thirtieth
(30~h) day following the date on which the Annual Report for the subject Contract Year
has been delivered to the City, an additional Incentive Management Fee, to be paid as a
productivity reward. The Incentive Management Fee is based on meeting specified
cdteda with respect to provision of the Food Services. The Incentive Management Fee
will be $26,000 (except as set forth in Paragraph (c) below), and will be earned by
Centerplate if it receives a '~avorable' rating for the following cdteda, each of which will
be equally weighted:
a. a favorable rating by the City Manager or the City Manager's designee
concerning financial performance of the Food Services, as reflected by budgeted sales,
budgeted costs, and Net Profits (the "Financial Performance Evaluation"); and
b. a favorable "Customer Service Evaluation" rating, which is the average of the
customer satisfaction ratings of the Food Services by the following four categories of
~customers': (i) the City Manager, or the City Manager's designee; (ii) SMG, as
Page 28 of 41
manager of the Facility; (iii) Food Service patrons of Events held at the Facility,
according to customer satisfaction surveys conducted jointly by Centerplate and SMG,
in a format agreeable to SMG, the General Manager (on behalf of the City), and
Centerplate; and (iv) a majodty of the Major User listed on Exhibit "B" attached hereto.
Centerplate shall eam the Incentive Management Fee only if its performance of
the Food Services has been rated "positively" by a combination of the four categories of
customers in the Customer Service Evaluation described above, and if it also receives a
favorable Financial Performance Evaluation. For the sole purpose of determining
whether a favorable Financial Performance Evaluation should be awarded to
Centerplate, Gross Receipts from the sale of alcoholic beverages by the Separate Entity
shall be deemed to be included in Gross Receipts generated by Centerplate, and will be
used in the calculation of Net Profits. The City Manager or the City Manager's designee
may agree (but shall not be obligated to agree) at any time, In its sole and absolute
discretion, to pay Centerplate all or a part of the Incentive Management Fee even
though the conditions have not been satisfied. For purposes of the Customer Service
Evaluation described above, Centerplate and the City shall agree on forms of
survey/questionnaire and the events at which the surveys shall be issued. The
survey/questionnaire shall contain a scodng system or ranking of "0" to "10").
Centerplate shall be responsible for distributing and collecting the customer satisfaction
surveys following designated Events, and providing to the City copies of the surveys,
together with a summary tabulation of the ratings of each survey. Centerplate shall be
considered rated "positively" by a group of respondents if, based on all responses
received during the Fiscal Year from the customers, the aggregate average score is
better than "6" on a scale of "0" to "10" (with "10" being the highest score and "0" being
the lowest score). At Centerplate's request, these surveys may be consolidated with
the surveys that SMG is required to conduct at the Facility_
To illustrate the operation of the Customer Satisfaction Evaluation portion of the
Incentive Management Fee, Centerplate's performance will be rated by each of the four
"customer" categories according to a numerical scale, to determine whether the
performance was "positive." However, to earn a portion of the Incentive Fee,
Centerplate need not be rated positively by all four categories of customers. If, for
example, Centerplate were rated positively by two of the four groups, and provided that
Centerplate received a favorable financial performance evaluation, Centerplate would
eam an Incentive Management Fee equal to 1/2 of the total possible Incentive
Management Fee for the Fiscal Year under consideration. If Centerplate were rated
positively by three of the four groups, Centerplate would earn an Incentive Management
Fee equal to % of the total possible Incentive Management Fee for the Fiscal year
under consideration.
c. If pursuant to the Anticipated Arrangement Centerplate is engaged by the
Separate Entity to manage the alcoholic beverage services at the Facility, then the
$26,000.00 Incentive Management Fee in this Agreement shall be reduced to
$17,420.00, but only so long as the Separate entity agrees in writing to pay the sum of
$8,580.00 to Centerplate as an Incentive Management Fee (with criteda substantially
the same as the criteria specified in this Article 8) in connection with Centerplate's
management of Its alcoholic beverage services.
Page 29 of 41
ARTICLE 9
INSURANCE; INDEMNITY
9.1 Insurance to be Maintained by Centerplate. Centerplate shall obtain and
maintain in effect the following policies of insurance, the costs of which shall be a Direct
Operating Cost and the limits of which may be met by a combination of primary and
excess or umbrella coverage satisfying the limit:
a. Worker's Compensation Insurance coverage with limits equal to the limits of
liability required by applicable state or federal law, including not less than $500,000.00
in employer's liability applicable to employees, agents, volunteers and assigns of
Centerplate;
b. Commercial General Liability coverage, including Bodily Injury, Personal
Injury Liability, Property Damage, Contractual Liability, Automobile (covering the use of
owned and non-owned automobiles or other vehicles used in connection with the
provision of the Food Services), and Products coverage with limits of at least
$1,000,000.00 per occurrence and $2,000,000 in the aggregate;
c. Liquor Liability Insurance in an amount not less than $1,000,000.00;
d. Umbrella or Excess Liability Insurance of not less than $5,000,000.O0 in
coverage, to apply in excess of Commercial General Liability, Liquor Liability, and Cdme
and Fidelity Insurance pdmary coverage, wdtten on an "occurrence" basis; and
e. Crime and Fidelity Insurance of not less than $1,000,000.00 per occurrence,
covering: (I) employee dishonesty, (ii) forgery or alteraUon, (iii) theft, disappearance and
destruction inside and outside the Food Service Premises; and (iv) robbery and safe
burglary inside and outside the Food Service Premises.
9.2 Insurance Requirements. All insurance required under this Agreement may be
carded under a blanket policy and shall be issued by insurance companies authorized
to conduct business in the State of Texas, having a financial rating of at least A+ 6
status (as rated in the most recent edition of Best's Insurance Reports), shall contain an
endorsement requiring sixty (60) days' written notice from the insurance company(les)
to the City and to Center plate before cancellation, non-renewal, termination, or change
in the coverage, scope or limits of the policies and shall name the City as an additional
insured.
9.3 Waiver of Subrogation. Centerplate agrees to cause the issuers of the
insurance policies required under this Agreement to include waivers of the rights of
recovery and subrogation. Centerplate shall require that the City be named as an
additional insured for all liability policies.
9.4 Proceeds of Casualty Insurance. If the Facility or any part thereof is damaged
or destroyed by fire or other casualty, the City will determine whether or not repairs and
restoration are practicable and feasible and will inform Centerplate in writing of its
Page 30 of 41
election to make or not make any of the repairs and restoration within one hundred
twenty (120) days following the date of the damage or deslTucflon. All proceeds of any
casualty insurance paid to l~e City under policies insuring property belonging to the City
shall be the exclusive property of the City, and Centerplate shall have no right to receive
any portion of the proceeds (unless the damaged property was purchased as a
Reimbursable Expense, in which case Centerplate shell use the procccds to replace the
property, for which the City will subsequently reimburse Centerplate). Any proceeds of
casualty insurance paid to Centerplate for property belonging to Centerplate shall be the
exclusive property of Centerplate, and the City shall have no dght to receive any sums
from the proceeds (except, as described above, in the case of proceeds for property
which Centerplate had purchased as a Reimbursable Expense).
If the C~ elects not to repair or restore the damage to the Facility, either Party
shall have the right to terminate this Agreement, without penalty, premium, or fee, by
written notice of termination to the other Party. Notwithstanding any termination, if the
City initially elects not to restore the damage to the Facility, but within one (1) year
following termination of this Agreement decides to restore the Facility, the City shall give
written notice thereof to Centerplate whereupon Centerplate shall have a period of thirty
(30) days from receipt of written notice in which to elect to enter into a new contract with
the City for operation of Food Services at the Facility immediately following restoration
of ~ same. In the event, the contract for ~ Food Services shall be on the same terms
and conditions as this Agreement except that the term shall be for only the portion of the
Term which was lost due to termination under this Article.
If, on the other hand, the City elects to repair and restore, payments of the Base
Management Fee shall be equitably reduced (laking into account the level of services
Centerplate is able to provide during reconstruction, in comparison with the level of
services which had been provided by Centerplate pdor to the destruction of the Facility);
howeverL the City shall continue to reimburse Centerplate for the full amount
Reimbursable Expenses (including any Emergency Expenditures) until the Facility is re-
opened to the public.
9.5 Indemnity. Centerplete covenants to defend, indemnify, and hold harmless
the City of Corpus Chrlsd, its ofl)'cers, employees, and agents ('lndemnitoas')
against any and all liability, damage, loss, claims, judgments, reasonable costs
and expenses ("liability, etc.'), asserted by any person or persons, Including
age,~;a or employees of Centerplate or the City, for personal Injuries, property
loss or damage (Including, without limiting the foregoing, worker's compensation
and death claims) that may arise out of or are directly connected with
Centorplato's performance of this Agreement or Its use of the Facility or Food
Service Premises by Centerplato or its subcontractors or agents In the
performance of this Agreement (the "Claim"). This indemnity specifically
Includes any Claims brought reletJng to the sale or service of alcoholic beverages
(except that in the event of the Anticipated Armngemen~ if Centorplets does not
hold a permit and license and does not participafe in the sale of alcoholic
beverages, Centsrpleto shaft have no liability for Claims regarding the sale of
alcoholic beverages). Centerpleto must at its own expanse, invesdgato afl Claims
of which it has actual notice, attend to their setdement or other disposition,
defend Indemnitees in all acdons based on those Claims with counsel
reasonably sadafectory to Indemnitoes, and pay all reasonable attorneys' tees
Page 31 of 41
and other reesoneble custs and expenses resulting from the Claim. The City will
pmmpb~/ forward to Centerplats any C/a/m, Including Summona end Complaints
and all other documents end correspondence which relate to any claim or lawsuit
together with the City's written notice of the Claim or lawsuit under thl~
Paragraph es soon as reasonably prectfcable. If the failure of the City to nobYy
Centerplats of any claim or lawsuit es provided In this Paragraph causes actual
prejudice .to Centsrplats's ablflty to pureue a defense, the City shall relieve
Centerplato of Its obligation to indemnify Indemnltees for the Claim, but only to
the extent of the amount attributable to the actual prejudice suffered by
Centorplate.
ARTICLE 10
EQUAL EMPLOYMENT OPPORTUNITY
10.1 Discrimination Prohibited. In performing the Food Services under this
Agreement, Centerplate shall not knowingly discriminate against any employee or
applicant for employment because of age, race, meed, sex, color, disability, or national
origin, and Centarplate will take commercially reasonable affirmative action to ensure
that any employee or applicant for employment is given equal employment opportunities
without discrimination because of age, race, creed, sex, color or national origin. The
action shall be taken with reference, but not be limited to, recruib3~ent, employment, job
assignment, promotion, upgrading, demotion, transfer, layoff or termination, rates of pay
or other forms of compensation in selection for training or retraining, including
apprenticeship and on the job training. Subject to compliance with the obligations,
Centerplate shall have plenary power with respect to the hiring and discharge of its
employees.
10.2 MWDBE. Centerplate shall comply with applicable City policy pertaining to
minorities, women and disadvantaged business enterprises in performing its Food
Services hereunder, which policy imposes an obligation on the part of Centerplate to
use its commercially reasonable afro;Is to achieve a level of minority participation in
providing Food Services for the Facility in the amount as is designated by the City, but
which amount will not exceed fifteen percent (15%). The City will provide the
designated amount to Centerplate in writing_
ARTICLE 11
CERTAIN MATTERS REGARDING TERMINATION
11.1 Surrender of Improvements. Upon expiration or sooner termination of this
Agreement, Centerplate shall promptly surrender the Food Services Premises to the
City, leaving to the City all equipment, supplies, manuals, books, records, and,
inventories that are the property of the City or that have been purchased as Direct
Operating Costs or Reimbursable Expenses, and Centerplate hereby quitclaims,
transfers, sells, assigns, and conveys to the City, without recourse, representation, or
warranty, all right, titJe, and interest that Centerplate may have to all improvements
made to the Facility, and to all equipment, materials, supplies, inventories and all other
property so purchased, except for any equipment or other moveable property that
remains the sole property of Centerplate. Centerplate agrees to execute any
documents necessary to evidence the transfer promptly at the City's request.
Page 32 of 41
11.2 Continuation of Performance.
a. In the event of termination of this Agreement by the City, Centerplate shall
continue to perform the Food Services under this Agreement for a reasonable time as is
mutually agreed by the Parties, but at least for a pedod of 60 days, so as to enable the
City to make arrangements for a successor Food Service operator, provided, however,
that Centerplate will not be required to continue to operate if its Direct Operating Costs,
including the Management Fees payable under this Agreement, am not funded and paid
by the City within ten (10) days following wdtten notice, or if in Centerplate's sole
opinion continuing to operate would violate TABC regulations or applicable law, and in
no event for more than three (3) months following the termination.
b. In the event of termination of this Agreement by Centerplate, Centerplate
shall continue to perform the Food Services under this Agreement for a reasonable time
as is mutually agreed by the Parties, but at least for a period of 60 days, so as to enable
the City to make arrangements for a successor Food Service operator, provided,
however, that Centerplate may terminate immediately if its Direct Operating Costs,
including the Management Fees payable under this Agreement, are not funded and
paid by the City within ten (10) days following wdtten notice, or if in Centerplate's sole
opinion continuing to operate would violate TABC regulations or applicable law.
11.3 Terrnlnatlon at Will. The City shall have the right at any time following the third
(3"~) anniversary of the Opening Date to terminate this Agreement, without cause, by
providing one hundred twenty (120) days' wdtten notice (following the anniversary date)
to Centerplate, the termination to be without the payment of any penalty or premium,
except that, however, the City shall pay Centerplate any Management Fees accrued but
unpaid as of the date of the termination.
11.4 Termination by Centerplate. In the event that Centerplate has acted in good
faith, and: (a) the parties fail to execute a Confirmation by February 1, 2005; or (b)
Separate Entity fails or refuses to agree to the Anticipated Arrangement within ninety
(90) days of the execution of Confirmation (unless the Parties agree in writing to extend
this deadline); or (c) Centerplate determines that termination is appropriate under
Paragraph 7.9(c) above; or (d) Centerplate determines that termination is appropriate
under Paragraph 2.4 above, Centerplate may terminate this Agreement upon ninety
days' written notice.
ARTICLE 12
BREACH
12.1 Breach. Each of the following shall constitute a breach under this Agreement:
a. Failure to pay when due any amount required to be paid under this
Agreement, if the failure continues for, in respect to any regularly-scheduled payment
due hereunder, ten (10) days after written notice has been received by the breaching
party, or in respect to any payment due hereunder which is not a regularly scheduled
payment, thirty (30) days after notice has been given to the breaching party;
L:~Legal~C~rpL~ Chrl~LJun.2.04 final (p~aJn).doc
Page 33 of 41
b. Failure to perform any other obligation under this Agreement (including
Centerplate's failure to meet the standards of performance of the Food Services), if the
failure to perform is not cured within thirty (30) days after written notice has been
received by the breaching party; however, if the breach cannot reasonably be cured
within thirty (30) days, a breach shall not be considered to have occurred if (a) the
breaching party begins during the time to cure the breach; (b) diligently and in good
faith continues to pursue the cure of the breach; and (c) actually cures the breach within
a reasonable time following receipt of the notice.
12.2 Interest on Delinquent Payments_ Interest shall accrue on any sums which are
owed pursuant to the Prompt Payment Act and not paid when due or cured pursuant to
the provisions of this Agreement_
'12.3 Non-Curable Material Breach. Each of the following shall constitute a non-
curable breach of a Party under this Agreement:
a. Any representation or warranty contained in this Agreement, which is
knowingly false or misleading in any material respect as of the date made or considered
to have been made; or
b. The Party: (a) admits in writing its inability to pay its debts as they become
due, or (b) files a petition in bankruptcy or for the reorganization or for the adoption of
an arrangement under the Bankruptcy Code as now or in the future amended, or file a
pleading asking for the relief, or have or suffer to be filed an Involuntary petition in
bankruptcy against it which is not contested and discharged within sixty (60) days, or (c)
makes an assignment for the benefit of creditors, or (d) consents to the appointment of
a trustee or receiver for all or a major portion of its assets, or (e) Is adjudicated as
bankrupt or insolvent under any federal or state law, or (t') suffers the entry of a court
order, any federal or state law appointing a receiver or trustee for all or a major part of
its assets, or ordering the winding-up or liquidation of its affairs, or approving a petition
filed against it under the Bankruptcy Code, as now existing or in the future as amended,
which order, if not consented to by it, is not be discharged or bonded-off within thirty
(30) days from the date of entry thereof, or where an appeal or other appropriate further
proceeding for review thereof is not taken within the peded and a stay of execution
pending the appeal is not obtained, or (h) suffers a writ or warrant of attachment or any
similar process to be Issued by any court against all or any substantial portion of its
assets, and the writ or warrant of attachment or similar process is not stayed or is not
released within forty-five (45) days after its entry or levy, or after any stay Is vacated or
set aside, or (i) suffers the placing of a judgment lien against its property and fails to
cause the lien to be released and discharged within forty-five (45) days from the date
the lien took effect; or
c. The Party conceals, removes or permits to be concealed or removed, any
part of its property with the intent to hinder, delay or defraud its creditors, or transfers of
any of its assets to or for the benefit of a creditor(s) at a time when other creditors
similarly-situated have not been paid; or suffers or permits while insolvent any creditor
to obtain a lien on its property through legal proceedings, which lien is not vacated or
removed by bond within thirty (30) days from the date thereof; or
L:~Lega[~Cc~pus Chrl~t~Jun.2.04 final (p~aln).doc
Page 34 of 41
d. The Party breaches the provisions of Paragraph 7_5, and fails to cure beyond
any applicable cure pednd if cure is possible.
12.4 Breach Notices. Each Party shall promptly notify the other of any acts or
omissions believed to represent a breach under this Agreement. To be effective for
purposes of Paragraph 12.1 or 12.2, a notice of a breach must be timely given, must
state that it is a notice of breach, and must specify In reasonable detail the acts or
omissions alleged to constitute a breach of this Agreement.
12.5 Rights of Non-Breaching Party. If a breach occurs and Is not waived in wdting
by the non-breaching Party, then the non-breaching Party shall have the following
remedies, which are not exclusive but are cumulative in addition to any other remedies
now or later allowed by law or in equity:
a. The dght to cure, at the breaching Party's cost and expense, any breach;
b. The right to sue to collect any sums not paid when due, together with interest
accrued thereon as provided by Paragraph 12.2;
c. The dght to sue to collect damages suffered by the non-breaching Party by
reason of the occurrence of a willful matedal breach, other than breach with respect to
the payment of undisputed sums of money;
d. The dght to terminate this Agreement; or
e. The dght to seek specific performance of the breached obligation.
ARTICLE 13
MISCELLANEOUS
13.1 Notices. Unless expressly otherwise provided elsewhere in this Agreement, any
election, notice or other communication required or permitted to be given under this
Agreement shall be in writing and considered to have been properly given if and when
delivered personally or by a nationally-recognized ovemight delivery service (with proof
of receipt) as of the time of actual receipt, or three (3) days after mailing (by certified
mail, retum receipt requested) with proper postage prepaid), at the address(es) set forth
below, or at the other address(es) as a Party may designate in writing, in accordance
with this notice provision.
If to the City:
SMG, as General Manager for the Facility
Marc Soils, SMG General Manager
Amedcan Bank Center
1901 North Shoreline Boulevard
Corpus Chdstl, TX 78401
Telephone: 361-826-4100
Fax: 361-883-0788
L:~ega~Coq:,us Chrlsb'~lun.2.04 final (p~aJn).doc
Page 35 of 41
and to:
Mr. George K. Noe
City Manager
City of Corpus Christi
1201 Leopard Street
P. O. Box 9277
Corpus Chdsti, Texas 78469-9277
Telephone: 361-990-3220
Fax: 361-880-3839
With copies to:
Mr. Armando Chapa
City Secretary
City of Corpus Chdsti
1201 Leopard Street
P. O. Box 9277
Corpus Christi, Texas 784-69-9277
Telephone: 361-990-3105
Fax: 361-880-3113
Ms. Mary Kay Fischer
City Attomey
City of Corpus Christi
1201 Leopard Street
P.O. Box 9277
Corpus Chdst~, Texas 78469-9277
Telephone: 361-880-3360
Fax: 361-880-3239
If to Centerplate:
Centerplate Food Services Director
1901 North Shoreline Boulevard
Corpus Chdsti, TX 78401
Telephone: (381) 888-8852
Fax:
With a copy to:
Centerplate Legal Department
201 East Broad Street
Spartanburg, SC 29306
Telephone: (864) 598-8600
Fax: (864) 598-8694
Notwithstanding the preceding, for purposes of approval of Budgets and any contracts
Page 36 of 41
requiring the approval of the City, the City shall be considered to have received Notice
only on its actual receipt.
13.2 Amendments. This Agreement may be amended only in a written instrument
signed by both parties. By its motion authorizing the execution of this Agreement, the
City Council authorizes the City Manager to execute amendments to this Agreement
and to enter Into agreements pursuant to the Anticipated Arrangement contemplated by
this Agreement without the necessity of further City Council approval.
13.3 Title and Captions. All articles or section titles or captions in this Agreement are
for convenience of reference only. They should not be considered to be part of this
Agreement or to in any way define, limit, extend, or descdbe the scope or intent of any
provisions of this Agreement. Except as specifically otherwise provided, reference to
"Articles," "Sections," and "Schedules" are to Articles and Sections of and Schedules to
this Agreement.
13.4 Pronouns and Plurals_ Whenever the context may require, any pronoun used in
this Agreement shall Include the corresponding masculine, feminine or neuter forms,
and the singular form of nouns, pronouns and verbs shall include the plural and vice
versa.
13.5 Right of Ingress and Egress. Centerplate acknowledges that the City Manager
or the City Managers designee, and the General Manager, shall have the dght, subject
to pdor reasonable notice, to enter the Food Service Premises for the purpose of
inspection thereof or the conduct of capital improvements and for other purposes,
excepting the liquor storage area(s) or cash room serving the Food Service Premises.
The City agrees to coordinate the entry with Centerplate to minimize interference with
Events or the provision of Food Services.
13.6 Promotional Activities. The City hereby grants to Centerplate a license dudng
the Term of this Agreement to use, and to grant to others the dght to use, its name
(though not its logo or other proprietary information or intellectual property belonging to
the City) in connection with the advertising, promotion, marketing and public relations
activities for the Food Services, and in connection with Centerplate's general marketing
of its services. For example, in submitting Proposals in response to Requests for
Proposal issued by other parties, Centerplate may list the Facility as a facility serviced
by Centerplate. Any use of the City's logo or other proprietary information or intellectual
property is subject to the sole reasonable approval of the City Manager or the City
Manager's designee.
13.7 Severability. Each provision of this Agreement shall be considered to be
severable and if, for any reason, any provision or any part thereof is determined to be
invalid and contrary to any existing or future applicable law, the invalidity shall not impair
the operation of or affect those portions of this Agreement that are valid, but rather this
Agreement shall be construed and enforced in all other respects, as if the invalid or
unenforceable provision or part thereof had been omitted.
13.8 Successors. This Agreement shall be binding on and inure to the benefit of the
Parties and their respective heirs, executors, successors, and assigns, but this provision
Page 37 of 41
shall not be considered to permit any assignment by a party of any of its rights or
obligations under this Agreement except as expressly provided in this Agreement.
13.9 Assignment. Centerplate shall not voluntarily assign or encumber its interest in
this Agreement without first obtaining the City's consent, except as allowed under this
Paragraph. Any assignment or encumbrance contrary to this Paragraph shall be
voidable and, at the City's election, within thirty (30) days of gaining actual knowledge of
the assignment or encumbrance in violation of this Paragraph shall constitute a breach
which shall be a breach unless the assignment or encumbrance Is rescinded within
thirty (30) days after the City has given Centerplate notice of the City's election to treat
the assignment or encumbrance as a breach. Notwithstanding the foregoing,
Centerplate shall have the dght, without the Ci~s consent but on prompt notice to the
City, to assign this Agreement (a) to any Affiliate of Centerplate, if the Affiliate agrees to
assume Centerplate's obligations hereunder, whether adslng before or after the date of
the assignment; or (b) to any entity with which Centerplate has merged or consolidated,
or (c) to a purchaser of all or substantially all of the Centerplate's assets, if the assignee
agrees to assume Centerplate's obligations hereunder, or to relieve Centerplate from
any of its obligations of hereunder, whether adsing before or after the date of the
assignment.
13.10 Further Action. Each Party, within ten (10) days after receiving written notice
from the other Party, shall execute and deliver to the party a certificate stating that this
Agreement is in full force and effect as originally executed, or in full force and effect as
modified, and stating any modifications hereto, and whether the other Party is not, to the
best of the executing Party's knowledge, in breach of this Agreement and, if so, stating
the exact nature of any breach alleged to have occurred.
13.11 Illegal Incentives. It shall be a breach of Centerplate's obligations hereunder to
offer, give, or agree to give any employee or former employee of the City an illegal
incentive or to offer employment to the person in connection with any decision,
approval, disapproval, recommendation, preparation of any part of any purchase
request, influence in the consent of any specification or procurement standard,
rendering of advice, investigation, auditing, or in any other advisory capacity in any
proceeding or application, request for ruling, determination, claim or controversy or
other particular matter, pertaining to solicitation of any contract or proposal therefore by
Centerplate from the City.
13.12 No Solicitations. Centerplate shall not, on behalf of the City, accept any
solicitations, requests for services, contributions, gifts, favors, tickets, gratuities not part
of a written contract, or other benefits from any party or person seeking to conduct or
conducting business with the Facility.
13.13 Entire Agreement; Attorneys' Fees. This Agreement, including the attached
exhibits, contains the entire Agreement of the Parties, and supersedes all prior and
contemporaneous agreements and understandings, oral or otherwise, between the
parties with respect to the matters contained in this Agreement, and may not be
modified or amended except in a writing signed by both Parties. The prevailing party in
any litigation arising out of this Agreement or relating hereto shall be entitled to recover,
in addition to any award for actual damages made in the dispute, its reasonable
Page 38 of 41
attorneys' fees and costs incurred in preparing for and participating in the litigation.
13.14 Counterparts. This Agreement may be executed in one or more counterparts
and each of the counterparts, for all purposes, shall be considered to be an original, but
all of the counterparts together shall constitute but one and the same instrument,
binding on the pa~es, notwithstanding that all of the parties may not have executed the
same counterpart.
13,15 Applicable Law and Venue. This Agreement shall be govemed by, and
construed and enforced in accordance with, the laws of the State of Texas. Venue for
any legal action relating to this Agreement shall be in the appropriate State or Federal
Court for Nueces County, Texas.
13.16 Limitation of Liability. Notwithstanding any contrary provision hereof, the City
agrees that no partner, co-venturer, employer, agent, director, officer, shareholder, or
Affiliate of Centerplate shall be personally liable to the City or anyone claiming by,
through or under the City, by reason of any default by Centerplate under this
Agreement, any obligation of Centerplate to the City, or for any amount that may
become due to the City by Centerplate under the terms of this Agreement or otherwise.
13.17 No Representation as to Operations Results. The City recognizes that Gross
Receipts for the Food Services are incapable of being estimated with reasonable
certainty, given that the entertainment and food service industry as a whole fluctuates,
based on general economic conditions, current trends in entertainment, available
income of patrons, competitive facilities, and a vadety of rapidly changing factors
beyond the control of Centerplate. Centerplate has made no (and disclaims any)
purported or actual representation or warranty as to the results which can be expected
from the operation of the Food Services including, without limitation, the Gross Receipts
or Direct Operating Costs, or the accuracy of its projections and estimates thereof. The
City recognizes and accepts that all Budgets and projections represent Centerplate's
estimate of the expected expenditures and revenues and that Centerplate is in no way
responsible or liable if the actual expenditures and revenues are more, or are less, than
the amounts projected (unless the situation is the direct result of a matedal breach of
this Agreement by Centerplate).
13.18 Force Majeure. Neither party shall be in default hereunder or liable to the other
for failure to perform, where the failure is the result of acts of God, war, terrorism,
decisions by the TABC preventing the sale of alcohol, failure or refusal of the Separate
Entity to enter into an agreement with either Party beyond a reasonable pedod of time,
epidemic, or any other similar cause outside of the reasonable control of the Party who
asserts that its failure to perform is excused under this Paragraph, provided, however,
that in no event shall this Paragraph be interpreted to extend to any default or failure to
perform resulting from labor shortages, strikes, or economic hardship unrelated to
events beyond the Party's reasonable control. In the event of a delay in performance
which Is excused by the operation of this Paragraph, the delay shall only be allowable
for the period dudng which the Party claiming the delay was substantially hindered from
performance of Its obligation by the event outside its reasonable control, unless this
Agreement expressly grants the Party a dght to terminate the Agreement.
L:~-ega~Corpus C~un.2.04 §n~l (p~ain).doc
Page 39 of 41
ARTICLE 14
CONSULTING SERVICES
14.1 General Consulting Services. In addition to the Facility, the City owns the
venue located in Corpus Chdsti, Texas, known as the Memorial Coliseum (the
"Coliseum"). Centerplate, for the consideration and other fees described in this
Agreement, agrees to provide, upon reasonable request by the City, certain consulting
services with regard to the Coliseum.
14.2 The City may request Centerplate to manage and operate Food Services at the
Coliseum and to that end, if the City makes the request in writing of Centerplate, the
Parties will negotiate in good faith with a view to reaching an agreement as to the terms
of the services, including without limitation, the terms of Centerplate's compensation,
together with the other terms, provisions and conditions as may be acceptable to both of
the Parties. If, after good faith negotiations regarding Food Services at the Coliseum,
the Parties are unable to reach an agreement within a reasonable pedod of time, either
Party may notify the other Party that it is withdrawing from the negotiations and,
thereafter, both Parties shall be released from any further obligation regarding the
Coliseum.
The undersigned have executed this Agreement as of the date first set forth.
A'I-rEST:
City Secretary
CITY OF CORPUS CHRISTI
By:
George K. Noe, City Manager
APPROVED FOR THE CITY ATTORNEY AS TO LEGAL FORM 15 May, 2004
Veronica Ocar~as
Assistant City Attomey
L:~egaACo~us Chd~J~lun.2.04 I~nal (plaln).doc
Page 40 of 41
THE STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on ,2004, by
George K. Noe, City Manager of the City of Corpus Christi, a Texas home-rule
Municipal Corporation, on behalf of said corporation.
Notary Public, State of Texas
Printed or Stamped Name
My Commission expires
(Seal)
STATE OFSOUTH CAROLINA
COUNTY OF SPARTANBURG
On this the __ day of ,2004, Kenneth Fdck, Chief Financial Officer and
Executive Vice President of Service Amedca Corporation, a Delaware corporation, d/b/a
Centerplate, hereby accepts the above Agreement on behalf of Centerplate.
Centerplate agrees to keep and perform the conditions imposed by the Agreement and
that it is bound by all of the terms of the Agreement.
Name: Kenneth Fdck
Title: Chief Financial Officer and
Executive Vice President
STATE OFSOUTH CAROLINA
COUNTY OFSPARTANBURG
This instrument was acknowledged before me on the ~/'d day of %c~r~. , 2004,
by Kenneth Frick, Chief Financial Officer and Executive Vice President of Service
America Corporation, a Delaware corporation, d/b/a Centerplate, on behalf of the
corporation.
Notary Public, State of SOUTH CAROLINA
Pdnted or Stamped Name
My Commission expires ,"~-I~
(Seal)
Exhibits
Page 41 of 41
Exhibits A, B, C and D are attached.
L:t/_egaf~Co,~u~ Ch~l~lLk~.2,O4 final (pia~Ldoc
, ~ ~ · . . .
~ I ~ ~ ~ I ~-- I
i I t I ,
.-~,..~ ............ ~ ..................... ~ ................ ~_. , ,- ~ '~
-- ~ ~ .... /' ~ ............ , ............ ~ ....... q~...~
'i ~ i ~ . ~ - ~
i ~ . ' I .
lI
i
'i
Exhibit B
Texas A&M men's and women's basketball teams (Corpus Christi campus)
Corpus Christi Rayz Hockey Team
. [ · -- ~ - :
! ;~ ~
® ®
11/25/2883 i2:44 3618838788
' 5~,F-ZU-ZUU~ PNI UI:b>' ~'~ UI'FI'ItKYLJ'II~
B~'~ PLA~
H'~ HU. bU~ bUU ubqu
b
CEN'I'ERPLATE
P~GE
02/03
U!
Memo
Tm Harold Paterson
F~m~ Mike Frost ..~
Dmt~. 09/26/03
Rm Information requested
I have listed below the e~-~ted exDensea that would be charged if
were b3 be mimbureed for expenses ~s oopoaed ~o the mortthly pm-opening fee. I
mentioned it is our preference tn chaq~ a fee end not track or account for Ifle houm
and money apent (that Just creates more work). Ail of the costs Ilstecl are Internal
expenses. In all ¢ase~, if external a~Jstan(~ w~re needed, the contrac~ language of
deduc/Jble expense would apply.
Pre-O~enlr~ E.x3~nses:
Services ol~ cc,130rate opening support (MU(e Frost. etc):
2 trips/month: $1,200.00 / month fnr 7 months
$1,500,00 / month for 3 mon*J~
$ 8,400.00
4,500.00
Conntrud~n / Equipment purchase I Adm~nisa'atlve cost
1,200.00
Leo, al Fee~:
Contact 2200.00
Buginees Llcenee: 900.00
Liquor Permit: 2,~0.00
^dmlnistmtlve Costs:
Payroll processing: $25 / week for 24 weeks
Payroll Benefits Administration: $90 / month for $ montJ3s
Flnandal Statements/Record Keeping: $60 / month for 8 ~
1,000,0o
720,00
1~/25/2003 12:4q 3B18830780 ~VIq~q3NT PLAZA PAGE 83/03
· ~-~-~UU~ ~KI UI;bZ PM U~H'I'~KHLA'I'~ F'flX HI.J, 504 b~ Ub~O ~, O~
2,100.00
Additional Irlps by c~-porats support
Corporate time expense
Michael Baker expenses prior to c~ntract signed
Total estimated expenses
The following is some Jus~catlon point~ for the increase in the catertng fee.
15% Food - 10% Is the Industry Iow end has been the eama since the
bul]dlng opened.
20% Alcohol Beverages - slightly higher profit even if priced at ~ne same food
cost, labor costs are much lower, There Is no cooking time and less sat'~m
are needed per 100 guests. Alcohol beverages shmJld yield 10-15% higher
please call me if you have any questions.
SMG Outside Caterers
Standards, Policies and Procedures
The following standards, policies and procedures must be met by all outside Caterers in order to
provide their services in the Convention Center at the American Bank Center. The policies,
procedures and standards, outlined herewith, were developed to assure Local, State, and TABC
laws are complied with and that Health Depa~hnent standards are met. They are furthermore
designed to ensure the overall satisfaction of the Center's guests, assure the smooth operation of
the Facility and to maintain the Center's image as a first class venue for public and private
events.
The provision and service of any food and or alcoholic beverage in the Center must be in full
compliance with all state, local and Texas Alcoholic Beverage Commission laws pertaining to
the services provided. The Caterer must also comply with all Health Department Standards for
the procurement, preparation and service of all food and beverages. All prepared food items must
be prepared in a Health Department certified facility. Particular attention must be paid to time
and temperature related issues that may affect the safety of food items consumed over the
duration of an event.
Guests, or those other than the contracted Caterer, are not allowed to bring food or beverages
into the facility and the Caterer should make every effort to assure compliance with this policy.
The Caterer will have the free use of the designated outside catering kitchen (as available), and
will be provided ice (as available), from within the building. Since many different caterers will
be doing business in the Convention Center, it is essential that the caterer make specific
arrangements for the use of the kitchen for each event being serviced. Other Caterers may need
access to some of the kitchen facilities at the same time. The SMG Manager will have the final
decision concerning disputes between Caterers regarding the use of the kitchen. Some SMG
managed equipment which is not specifically provided free under this agreement may be rented
from SMG at standard rates, and a schedule of these items and their rates will be made available.
At least ten (10) days prior to the date of a catered function, the Caterer will provide SMG with a
list of the set-up requirements as well as any SMG managed equipment to be rented, inclusive of
a completed rental agreement for the items to be rented. A failure to do so may result in the
inability to accomplish a desired setup or the unavailability of desired equipment. The Caterer
must also enter into a specific catering agreement for the event by this time.
In addition the Caterer will provide SMG the City's contracted facility management
representative with a public liability insurance policy in which both the Caterer, the City and
SMG are named as insured in the form of an acceptable certificate of insurance. This certificate
shall include comprehensive general liability (with product/completed operation hazard
included) with minimum coverage of $1,000,000 combined single limit_ For liquor catering,
liquor liability minimum coverage shall be $1,000,12}00 combined single limit. The Caterer also
agrees to indemnify the City and SMG, holding them harmless against any and every case of
liability and / or litigation which may be a result of the actions or omissions of the caterer.
The Caterer will avoid creating any unnecessary mess and will endeavor to protect the carpet in
service areas. Upon termination of the function, the Caterer will clear all tables, clean the
kitchen, if utilized, and remove all trash to the designated containers, furnished by SMG.
The Caterer will pay for any damage to the building or SMG managed equipment which is
caused by the Caterer or those employed by the Caterer. If the Caterer fails to properly clean the
kitchen or remove trash as described after its use, SMG will bill the Caterer for the cost of the
labor involved to perform this task, with a minimum assessment of $500_00.
A professional appearance is required for all "firont of house" Catering Staffutilized in the
facility. A minimum requirement of black and white attire (black dress pants, slacks or skirts
and white dress shirts) will be expected of all service staff and such staff should wear a name
badge bearing at minimum the name of the Caterer contxacted for the event_ Special uniforms or
therned attire may be acceptable alternatives to the uniform requirement. All staff must check in
with Center Security upon entering the building.
The use of disposable service ware, as provided by the caterer is acceptable, provided its use is
acceptable to the customer. The mum standards for such disposables shall be as follows:
Plates and or bowls must be plastic (no paper or foam plates or bowls are allowed.) Black is the
preferred color, though other colors to match themes may be used. Utensils must be a minimum
of medium weight grade or better.
The following are guidelines for minimum service staff levels in the Center:
Sit down full service breakfasts - one-(l) server per 40 guests (5 tables)
Sit down full service breakfasts luncheons or dinners - one-(l) server per 32 guests (4 tables)
Buffet meals (staff to replenish buffet items, clear tables, etc.) - one server per 40 guests (5
tables)
The Caterer agrees to pay to SMG on behalf of the City fifteen percent (15%) of the gross
receipts charged to the lessee_ Gross receipts shall be defined as the total amount charged to the
lessee for food; non alcoholic beverages, labor, service charge/gratuities, rentals and services
after taxes have been deducted. (Rental of SMG managed china, glassware, flatware, or other
equipment may also be deducted). The Caterer agrees to pay to SMG on behalf of the City
twenty percent (20%) of the gross receipts fi.om any sales of alcoholic charged to the lessee. The
caterer shall submit a report of gross receipts on forms provided by SMG, no later than five (5)
business days phor to the event. Any modifications to the gross revenues oftbe event occurring
after this point, as in count changes or additional charges, must be reported on an additional copy
of the form and provided to SMG's authorized representative by conclusion of the event.
The caterer shall make payment of all fees due to the city no later than the conclusion of the
event unless previous arrangements have been made with the SMG Manager. In addition, a one
and one-half percent (1.5%) penalty shall be assessed on all fees not paid to SMG by the end of
the event. The penalty shall be assessed and become due on the fi~t day aRer the event, and an
additional one and one-half percent (1.5%) penalty shall be assessed for each additional thixty
(30) day period thereafter. Furthermore, if payment of the account has not been settled within
the agreed upon terms, the delinquent caterer shall automatically be suspended fi.om doing
business in the facility for a period of thirty (30) days and their name removed fi.om the list of
approved Caterers for that same period. This suspension shall commence on the day of payment.
In the case of alcohol catering, the caterer agrees to pay the city twenty percent (20%) of the
gross receipts charged to the lessee. However, the minimum fee will be fifty dollars ($50.00) for
a fuaction being held in one of the smaller rooms; one hundred dollars ($100.00) for a function
being held m Room 225 or 203B; one hundred fifty dollars ($150.00) for a function being held
in 203A, the combined Banquet Hall (203 A & B), or the Exhibit Hall; two hundred dollars
($200.00) for a function in the Bayview Ballroom.
The books and records of the lessee/Caterer with respect to the event to be held shall be
accessible during normal business hours to SMG or its duly authorized agents or auditors for the
purpose of verifying the information set forth in any report of gross receipts or for the propose of
verifying compliance by the lessee/caterer with the terms of the agreement, but for no other
purpose.
The acceptance of, and full compliance with, the standards, policies, and proceduses described
herein shall entitle the Caterer to be listed on an approved Caterer list for the Convention Center.
Failure on either part may result in the removal of the Caterer fxom this list.
Caterer Date
16
AGENDA
CORPUS CHRISTI HOUSING FINANCE CORPORATION
ANNUAL MEETING
DATE:
TIME:
PLACE:
5.
6.
7.
Tuesday, June 22,2004
During the meeting of the City Council beginning at 10 a.m.
City Council Chambers
1201 Leopard St.
Corpus Chdsti, TX 78401
President Mark Scott calls meeting to order
Secretary Armando Chapa calls roll
Board of Directors
Mark Scott, President
Bill Kelly, Vice President
Brent Chesney
Javier Colmenero
Melody Cooper
Henry Garrett
Rex A. Kinnison
Samuel L. Neal Jr.
Jesse Noyola
Officers
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secretary
Vacant, Treasurer
Constance P. Sanchez, Asst. Treasurer
Election of Officers:
President
Vice President
Secretary
Assistant Secretary
Treasurer
Assistant Treasurer
General Manager
Approve Minutes of May 13, 2003
Financial Report
General Manager's Annual Repo~
Public Comment
8. Adjournment
TO:
FROM:
DATE:
SUBJECT:
Memorandum
Board Members of the Corpus Christi Housing Finance Corporation
George K. Noe, General Manager
June 17, 2004
Request for Annual Meeting of the Corpus Chdsti Housing Finance
Corporation (CCHFC) on June 22, 2004
I am requesting that a meeting of the Corpus Chdsti Housing Finance Corporation
(CCHFC) be held during the Council meeting of June 22, 2004 to consider the following
item:
1. Election of Officers: Each year at its annual meeting, the CCHFC elects officers. The
office of President is currently held by Mark Scott, while the position of Vice President
is held by Bill Kelly. The remaining positions are functionary positions in nature, which
traditionally are held by staff. I recommend a slate of City staff members for the
functionary positions as follows:
General Manager - George K. Noe, City Manager
Secretary - Armando Chapa, City Secretary
Assistant Secretary - Mary Juarez, Assistant City Secretary
Treasurer - Cindy O'Brien, Director of Finance
Assistant Treasurer - Constance P. Plomarity, Assistant Director of Finance
General Manager's Annual Report: The CCHFC was established in 1980. The
corporation has issued approximately $110 million in single family mortgage bonds pdor
to 1986, approximately $63 million in multi-family mortgage revenue bonds in 1982 and
1983, and approximately $140 million in Mortgage Credit Certificates since 1986. The
CCHFC has assisted in the purchase of over 3,300 single family homes and
development of approximately 1,250 apartment dwelling units. The CCHFC also has
participated as administrator for the Nueces County Housing Finance Corporation, the
Ingleside-Aransas Pass Housing Finance Corporation, the Portland Housing Finance
Corporation, and the Coastal Bend Housing Finance Corporation. In total, the CCHFC
has provided slightly over $330 million of housing assistance dudng its existence
assisting in the creation of approximately 4,550 dwelling units. In addition, the CCHFC
has provided over $3 million of funding to the City of Corpus Chdsti for a multiplicity of
economic development and City public purpose projects unrelated directly to housing.
In June 199~, the CCHFC and the Corpus Chds~ Community Improvement CorporatJon
(CCClC) entered into a very innovative and aggressive housing partnership, bdnging
together a number of groups "...to encourage, promote and work for housing
opportunities for all citizens of the City of Corpus Christi." The partnership developed
four major action strategies, which were as follows:
* Promotion and encouragement of home ownership opportunities.
* Preservation of the existing housing stock through rehabilitation and neighborhood
improvement.
* Provision of affordable rental housing for Iow to moderate income families within the
community.
Provision of essential services and shelter for those temporary homeless individuals
and families.
The partnership also established a goal of assisting 4,000 units of housing through all
of its activities by the end of the Year 2000.
As of Apdl 30, 2004, the partnership has resulted in the creation, assistance to, or
fundinq of 7,205 units. This involves over $156 million in assistance. The effort to
meet this goal has involved organizations across the City of Corpus ChdstJ who are all
to be commended. The staff of the Neighborhood Services Department of the City of
Corpus Christi has done an absolutely outstanding job in these undertakings. Our
partners at both HUD and the Texas Bond Review Agency should also be highly
complimented. In add,on, the Coastal Bend Housing Finance Corporation, the Corpus
Chdsti Board of Realtors, the Corpus Christi Builders Association, and the banks and
other organizations involved in the Corpus Chdsti Community Development
Corporation have labored tirelessly to make this goal a reality.
The CCHFC received a new allocation from the Texas Bond Review Board for $21.7
million in mortgage credit certificates and began the program on February 3, 2003.
The program is well underway, and we anticipate that more than 330 first-time
homebuyers will be assisted in obtaining home mortgages.
I have attached a chart of the various programs undertaken by the partnership since
1996.
George K. Noe
General Manager
CORPUS CHRISTI HOUSING PARTNERSHIP
ACCOMPLISHMENTS OF JULY 1996 THRU APRIL 30, 2004
Approval
Entity
CCHFC
(Coastal
Bend Housing
Finance Corp.)
CCHFC
CCCIC
CCCIC
CCCIC
CCCIC
CCCIC
CCCIC
CCCIC
CCCIC
City of C.C.
Action Item
MCC Program
Start Date 7/~/96 ($7M)
MCC Program
Start Date 9/15/96 ($19.3M)
Home Buyer Down Payment
Assistance #1
First lime Home Burr Dow~
Payment Assistance #2
RehabilitaUon
Rehabilitation
Physically-Challenged Units for
CHDO (Community Based
Housing Development
Organization)
Aparimenl~ E>r Low to Moderate
Income (60% to 80% o[Median
Income)
Rehabilitation (Errrergency Repair,
DemollUon Replacement &
Rehabilitation Programs)
Provision for matedab Ior limited
rahab for Elderly & Disabled Iow
Weatheriza[~on
Participant(s) Eligibility Fund~
Banks, Mortgage Bankers,
Savings Institutions across
Coastal Bend
Banks, Morlgsge Bankers,
Savings InsQ[uflons in Corpus
Chdsti
Financial InstRufions, Realtors I~r
qualifying homebuy~m
May be used with MCC Program.
Must be irst4ime homebu~er
Advanced Housing Alternatives
Corpora~n (AHAC) - Laguns
Advanced Housing Alternatives
Corpora[ion (AHAC) - South
Bluff
ARI (Qualified CHDO)
South Polnte Apartments
Cimarron Senior Apadrnents
Program operated by City Dept.
or Housing and Communlb/
Development under CCCIC
U. S. Navy and various nonproits
Nueces County Community
Action Agency
Purchase pdc:~ and income
restrictions; Rrst time
homebuyer
Purchase price end incorr,~
restrictions; Rr'st time
homebuy~r
80% of median income
Purchase pdco resfficUon
Flrst tlrr~ homebuser
Purchase pdce resbtctlon
80% of median income
80% of rrmdlan income
Physically-challenged
60% to 80% of median Income
Varies by program, up to 80%
of median income
Elderly and Disabled Low
Income
125% of poverty level
Cost
$7M in Federal Tax
Credit
361 $19.3M in Federal Tax
Credits
2039
$5,705,739
24 $24,000
104 $399,000
3.4 $150,000
I $55,000
196 $13,972,338
180 $9,700,000
1518
$5,959,915
62 $36,249
391 $547,053
Funding Source
Federal Tax Credits
Expired 12/98
Federal Tax Credits
Expired 12/98
HOME Program
Continuing
HOME Program
HOME Program
HOME program
HOME Program
$1,066,523 Texas Low
Income Tax Credits
$1,168,000 Texas Low
Income Tax Credits
CDBG & HOME
CDBG
CDBG
Approval
EnUty
CCC~C
CCCIC
CCCIC
CCHFC
Coastal Bend
Finance
Corporation
Action Item
Housing Complex for the
Physicarly Challenged
MCC Program 1/31/~000
New Home Construction
New Construction
MCC Program
Participant(s)
Accessibis Space, inc., Karen E.
Henry Foundation, HUD Sec. 811
Banks, Mortgage Bankers,
Savings Institutions in Corpus
Chrbl~
Nueces County Communib/
Action Agency
CDC, local builders, banks
Banks, Modgage Bankers,
Savings Instit[Jflons across
Coastal Bend
Eligibility
60% of median income
Purchase pdce and income
Res b"h:tions: Homebu~er
Assistance
Purchase price & income
Restrictions: Homebu~er
Assistance
Purchase pdce and income
Re~bfic~ons; Homebu~er
Assistance
Purchase pdce and income
Restrictions: Hornebu~er
Assistance
25
401
51
206
128
Cost
$275,150
$19,3 mi~ion
$872,000
$3,558,000
$2,500,000
Funding Source
HOME Program, Sec,
811, community
contribu[i(3ns
Federa~ Tax Credits
Ex:plred 4/02
HOME
~OME
on~ nung
Federal Tax Credits
Expired 4/02
CCHFC
CCHFC
Coastal Bend
Finance
Corporation
CCCIC
City of C C.
Cit7 of C.C.
MCC Program
Start Date 2-/03 (21.7 M)
Single Family Mortgage Revenue
Program
Rehabilitation
Rehabilitation
Rehabilitalion
Banks, Modgage Bankem,
Savi~Js Inslitutions in Corpus
Chdsti
Banks, Mortgage Bankers,
Savings Inelitu~bons across
Coastal Band
Nueces Coun[ySenlor Center
(El Paralso)
LULAC Village Park Apadmen[3
TG110, Inc.
Purchase pdce and Income
restTictlens; Rmt '~rne
homebuy~r
Purchase pdc~ and Income
Ree~rfctlone: Homebu)er
Asslstanco
Senior Citizens
80% ot median Income
80% of median income
101
270
40
152
152
$21.7M In Federal Tax
Credit
$15,000,000
$40,000
$370,700 (FY01)
$2,444,073 (FY96)
$300,000 (FY01)
Federal Tax Credits
Federal Tax Credits
Exltired 12/2
HONIE
HOME
HOME
Toxa,5
[)spar[men[ of
Housing &
Communlby
Affairs
New Construdion
Holly Park Apartments
30% - 60% of median income
172
$11,600,000
Low Income Housing
Tax Credits (LIHTC)
Approval
Entity
CCCIC
CCCIC
Approval
Entity
Crty of C.C.
City of C.C
City of C.C.
Cit3/of C.C.
Action Item
Acquisition only ¢or New
Construction renlal units
Rehabilita[~on
Action Item
Services for the Homeless
Services Ibr the Homeless
Lighllng and ~ncing for security al
Housing Authority projects
ADA Facilities
Participant(s)
Merced
~pG303, Inc. aka Casa de Manana
artments
Eligibility
30% - 80% of median Incom~
& market mn~
60% of median income or
below
OTHER SERVICES
Participant(s)
Metro Minmffies
Gulf Coast Council of La Raza
C.C. Housing Authorfb/
Eligibility
Low Income homeless
Low income chlklren and
young adurts
Housing Authority [enants
Kiwanis
Disabilities
Funded
204
N/A
N/A
N/A
160
Cost
$15 million
$300,000
Cost
$240,000
$1oo,333
$6o,667
$61,424
Funding Source
HOME
Funding Source
ESG
ESG
ESG
CDBG
TOTAL UNITS: 7,206
TOTAL AMOUNT: $156,918,664
MINUTES
CORPUS CHRISTI HOUSING FINANCE CORPORATION
MAY 13, 2003
3:30 P.M.
PRESENT
Board of Directors
Mark Scott, Vice President
Javier Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Samuel L. Ne. al Jr.
Jesse Noyola
Officers
George IC Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secre~at3,
Lee Ann Dumbauld, Treasurer
Constance P. Sanchez, Asst_ Treasurer
ABSENT
Brent Chesney
Vice President Scott 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 posted.
Vice President Scott called for nominations for the election of officers. Mayor Neal made
a motion to nominate Mr. Mark Scott for President, and Mr. Kirmison nominated Mr. Kelly for
Vice-President. Mr. Garrett seconded the motion, and the motionpassedunanimously. Mayor Neal
made a motion to nominate the following staffmembers to the remaining positions: George K. Noe
- General Manager, Armando Chapa - Secretary; Mary Juarez - Assistant Secrehaxy; Lee Ann
Dmnbauld - Treasurer; and Constance P. Sanchez - Assistant Treasurer. Mr. Garrett seconded the
motion, and it passed unanimously.
President Scott called for the approval of the minutes of Februm'y 11, 2003. Mr. Gamett
made a motion to approve the minutes as presented, seconded by Mr. Colmenero, and it passed
unanimously.
President Scott called for the financial report. City Manager Noe referred to a balance sheet
and summary of transactions for the corporation_ The Council had no questions.
President Scott called for the General Managers report. City Manager Noe reported that in
1996, the CCHFC and the Corpus Christi Community Improvement Corporation entered into a
parmership, establishing a goal of creating 4,000 umts of housing by the end of 2000. He stated that
as of April 30, 2003, the parmersh~p had significantly exceeded this goal, resulting in the creation
of 6,366 units, and provided $138 million in assistance_ He said the success was due to a
cooperative effort between many agencies, including the city's Housing and Community
Development depaatment, HUD, and the Texas Bond Review Agency.
Mr. Noe reported that the corporation's most recent activity was the acquisition of $21.7
million in mortgage credit certificates from the Texas Bond Review Board, which is anticipated to
assist more than 330 first-time homebuyers_
President Scott called for the appointment of George K. Noe as registered agent. A motion
was made, seconded, and passed unanimously to appoint Mr. Noe.
President Scott called for public comment, and there was none.
There being no further business to come before the corporation, President Scott adjourned
the meeting at 3:34 p.m. on May 13, 2003.
Corpus Christi Housing Finance Corporation
Balance Sheet
May 31, 2004
Assets
Current assets:
Cash in bank
Investments
Due from other funds
Total assets
$ 37,480.15
286,058.91
$ 323~5..39..06
Liabilities and Fund Balance
Liabilities:
Accounts Payable
Due to other funds
Total liabilities
Fund balance:
Undesignated
Total fund balance
323,539.06
323,539_06
Total liabilities and fund balance $ 323,539.06
Corpus Christi Housing Finance Corporation
Summary of Transactions
For ten months ended May 31, 2004
Fund balance at August 1,2003
$ 325,063.22
Revenues:
Proceeds from sale of property
Interest
Change in fair value of investments
Application fees
Re-submission fee
Participation fee
Issuance fee
Refinancing fee
Miscellaneous revenue
0.00
2,475.20
1,950.00
125.00
200.00
4,500.00
840.00
Total revenues
10,090.20
Expenditures:
Property expense
Administrative costs
Legal fees
Application fee refund
State certification fees
9,064.36
2,375.00
175.00
Total expenditures
11,614.36
Fund balance at May 31,2004 $ 323,539.06
DATE:
TIME:
PLACE:
5.
6.
7.
AGENDA
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
ANNUAL MEETING
Tuesday, June 22,2004
During the meeting of the City Council beginning at 10 a.m.
City Council Chambers
1201 Leopard St.
Corpus Christi, TX 78401
President Rex Kinnison calls meeting to order
Secretary Armando Chapa calls roll
Board of Directors
Rex A. Kinnison, President
Javier Colmenero, Vice President
Brent Chesney
Melody Cooper
Henry Garrett
Bill Kelly
Mark Scott
Jesse Noyola
Samuel L. Neal Jr.
Officers
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secretary
Cindy O'Bden, Treasurer
Constance P. Sanchez, Asst. Treasurer
Election of Officers:
President
Vice President
Secretary
Assistant Secretary
Treasurer
Assistant Treasurer
General Manager
Approval of Minutes of February 10, 2004
Financial Repod
General Manager's Annual Report
Public Comment
8. Adjournment
TO:
FROM:
DATE:
SUBJECT:
Memorandum
Board Members of the Coq~us Chnsti Community Improvement Corporation
George K. Noe, General Manager
June 17, 2004
Request for Annual Meeting of the Corpus Christi Community Improvement
Corporation (CCCIC) on June 22, 2004
I am requesting that the annual meeting of the Corpus Chdsti Community Improvement Corporation
(CCCIC) be held dudng the Council meeting of June 22, 2004 to consider the following items:
Election of Olflcem: Each year at its annual meeting, the CCCIC elects officers. The office of
President is currently held by Rex A. KJnnison, while the position of Vice President is held by
Javier Colrnenem. The remaining pesrdons are functionary positions in nature which traditionally
are held by staff. I recommend a slate of City staff members for the functionary positions as
follows:
General Manager - Geoge K. Noe, City Manager
Secretary - Armando Chapa, City Secretary
Assistant Secretary - Mary Juarez, Assistant City Secretary
Treasurer- Cindy O'Bden, Director of Finance
Assistant Treasurer - Constance P. Sanchez, Assistant Director of Finance
2. General Manager's Annual Report: The CCClC was originally incorporated as a nonprofit.
Corporation in 1976 as the Corpus Chdsti Housing Improvement Corporation. TI-~ Corporation
was originally intended to simply provide a vehicle for the City's single family rehabilitation
program; however, over the years the Corporation has taken a much broader role in not only
handling CDBG funds, but also HOME funds, certain ESG funds, and special CDBG projects
for the City. Over $30 million of funding has been generated through the CCCIC and
approximately 5,000 units have been assisted through the CCCIC's many programs.
The CCCIC began a parthership with the CCHFC in June 1996 to assist 4,000 units by the end
of the year 2000. Through March 31, 2002, the two corporations and their programs have
assisted 5,773 units and have generated over $117 million for these assistance programs (more
complete descriptions of the programs are included within the CCHFC's annual meeting
material).
The CCCIC also has undertaken a number of other community improvement programs which
are all satisfactorily accomplished or moving forward. An example of the different types of
programs is the complete r~novation of the old Police Department facility into a leased facility
for the Workforce Development Corporation. This project was accomplished both with funds
of the corporation as v~ll as a loan from a consortium of local banks.
George K. Noe
General Manager
MINUTES
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
FEBRUARY 10~ 2004
9:17 A.M.
PRESENT
Board of Directors
Rex A. Kinnison, President
Javier Colmenero, Vice-President
Brent Chesney
Henry Garrett
Bill Kelly
Samuel L. Neal Jr.
Jesse Noyola
Mark Scott
Officers
George K. Noe, General Manager
Annando Chapa, Secretary
ABSENT
Melody Cooper
President Kinnison called the meeting to order in the Council Chambers of City Hall.
Secretary Chapa verified that a quorum was present to conduct the meeting and that notice of the
meeting had been properly posted.
President Kinnison opened discussion on Item 3, appointment of Ms_ Cmdy O'Brien, director
of financial services, as treasurer_ Mr. Scott made a motion to appoint Ms_ O'Brien as treasurer,
seconded by Mr. Colmenero, and passed unanimously_
President Kinrdson opened discussion on Item 4, approval of the minutes of May 13, 2003.
Mr. Chesney made a motion to approve the minutes as presented, seconded by Mr. Scott, and
passed_
President Kiimison called for Item 5, the fmancial report. General Manager Noe referred to
the combined balance sheet and combined statement of revenues, expenditure, and changes in fund
balances as of December 31, 2003.
President Kinnison opened discussion on Item 6, the appoinm~ent of Loan Review
Committee members. A motion was made, seconded and passed to appoint the following members:
Alice Vauglm (reappointed); Ben Grande (reappointed); Alynda Asher (reappointed); Caroline Stahl
(reappointed); used Jesfis Leija (appointed).
President Kinnison opened discussion on Item 7, the approval of funding for the NCCAA
in the amount of $279,384 of HOME CHDO funds. Mr. Jonathan Wagner, acting director of the
neighborhood services department, stated that the city has received four Requests for Proposals
(P, FPs) through the HOME program, corresponding with Items 7 through 10 on today's agenda. He
said as part of the FY 2003 Annual Action Plan, the Council approved $279,384 (15 percent) in set-
aside funds for CHI)Os. In addition, he stated that the HOME program loans had generated
$465,000 in program income, and a cash match of $509,000 was also available_ In total, Mr.
Wagner said $1,253,384 was available for the HOME program for FY 2003. Mr. Wagner reported
that the Nueees County Community Action Agency (NCCAA) and Terra Genesis (TG) 303, Inc_,
Minutes, CCCIC meeting
February 10, 2004 - Page 2
both certified CHDOs, had submitted RFPs for funding consideration. He said the total mount of
funding requested fi.om the four proposals submitted totaled $1,163,134.
Mr. Wagner reviewed the four proposals individually. First, he said the NCCAA was
requesting $279,384 of HOME CHDO grant funding for down payment and closing costs assistance
in the purchase of newly constructed homes for individuals at or below 80 percent of Area Family
Median Income. Second, he said Terra-Genesis (TG) 303, Inc., a_k.a. Casa de Mafiana apartments,
was requesting HOME CHDO grant funding in the mount of $300,000 for the renovations of
complex after it was damaged by a tornado. Third, the Housing Authority of Corpus Christi was
requesting $150,000 in grant funding to assist 30 low-income residents. Finally, the fourth proposal
was submitted by Mereed Housing to develop 204 units in the northwest area of Corpus Christi at
McKmzie Road and Carbon Plant Road. Mr_ Wagner noted that each proposal must meet the
targeting standards for the HOME program as follows: program rule for rental & tenant-based rental
assistance - 90 percent of the households with income not exceeding 60 percent of area median
income; Droiect rule - projects with five or more units, 20 percent occupied by households at 50
percent or less of area median income_
President Kinnison called for public comment. Ms. Judy Telge, executive director of
Accessible Communities, Inc., spoke in support of addressing the under 50 percent median income
with HOME funds in these projects. She also supported the use of HOME funds for rental units.
She asked what percentage of HOME funds would be used toward accessible units for persons with
disabilities. Ms. Susan Sherron with Merced Housing, Mr. Rudy Cantfi with NCCAA, and Mr. Ron
Anderson with Terra-Genesis (TG) 303, Inc_, responded to the question. There were no
representatives fi.om the Housing Authority present. Mr. Abel Alonzo spoke regarding the creation
of more home ownemhip opportunities for persons with disabilities.
Secretary Chapa polled the Board for their votes as follows:
Approval of funding for NCCAA in the amount of $279,384 of HOME CHDO Funds. This
funding is for down payment and closing costs assistance in the purchase of newly
constructed homes for individuals at or below 80% ofAroa Fam ilyMedian Income for Phase
1 of Holly Properties.
The foregoing item was passed and approved with the following vote: Kinnison, Chesney,
Colmenero, Gan'err, Kelly, Neal, Noyola and Scott, voting "Aye"; Cooper was absent-
Approval of funding for Terra-Genesis (TG) 303, Inc. aka Casa de Manana Apartments, in
the amount of $300,000 of HOME CHDO Funds for renovation of the apartment complex.
The foregoing item was passed and approved with the following vote: Kinnison, Chesney,
Colmenero, Garrett, Kelly, Neal, Noyola and Scott, voting "Aye"; Cooper was absent.
Approval of funding for Housing Authority of the City of Corpus Christi in the amount of
$150,000 of HOME CHDO Funds to assist 30 low-income residents of Corpus Christi to
compliment their Section 8 Homeownerslfip Program,
The foregoing item was passed and approved with the following vote: Kinnison, Chesney,
Colmenero, Garrett, Kelly, Neal, Noyola and Scott, voting "Aye"; Cooper was absent.
Minutes, CCCIC meeting
February 10, 2004 - Page 3
10.
Approval of funding for Merced Housing in the amount of $433,750 of HOME CHDO
Funds for land acquisition and design for a proposed 204-unit development in the Northwest
area of Corpus Christi at McKinzie Road and Carbon Plant Road.
The foregoing item was passed and approved with the following vote: Kirmison, Chesney,
Colmenero, Garrett, Kelly, Neal, Noyola and Scott, voting "Aye"; Cooper was absent.
There were no comments from the audience. There being no further business to come before
the Corporation, President Kinnison adjourned the meeting at 9:50 a.m. on February 10, 2004.
CITY OF CORPUS CHRISTI
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
COMBINED BALANCE SHEET
31-May-04
ASSETS
Cash and investments
Due from U S Government
Mortgages receivable
Accrued interest receivable
Loan receivable
Leasehold improvements (net
accumulated amortization)
Investment in property (net of
accumulated depreciabon)
Total assets
Loan Program Special Project HOME Program
Fund Fund Fund
Total
1,168,618 216,465 708,317 2,093,400
0 0 0 0
111323,616 0 7,525,133 18,648,751
3,916 0 0 3,916
0 0 0 0
204,538 0 0
204,538
198,299 21,047 19,750 239,096
12,898,989 237,512 8,253,200 21,389,701
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Bank note payable
Total liabili~es
Fund Balance:
Reserved for WDC project
Reserved for Kids in the Neighbod~ood
Reserved for HOME program
Reserved for mortgages
Reserved for Seawall loan
Unreserved
Total fund balance
322,750 0 0
203,809 0 0
526,559 0 0
52,451 0 0
131,111 0 0
506,260 0 0
11,394,207 0 7,587,158
0 0 0
288,401 237,512 666,042
322,750
203,809
526,559
52,451
131,111
506,260
18,981,365
0
1,191,955
12,372,430 237,512 8,253,200 20,863,142
Total liabilities and fund balance 12,898,989 237,512 8,253,200 21,389,701
CITY OF CORPUS CHRISTI
CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE TEN MONTHS ENDED MAY 31,2004
Revenues:
Conbibu[ion from Federal Government
Interest on loans
Interest on investments
Rent, al income
Miscellaneous
Totalrevenues
Loan Program Special Project HOME Program
Fund Fund Fund Total
0 0 1,223,302 1,223,302
64,156 0 15,163 79,319
6,735 90 206 7,031
87,836 0 0 87,836
942 0 397 1,339
159,669 90 1,239,068 1,398,827
Expenditures:
Grants
Warranty Work
Community Development adrninislra~Jon
Loan processing
Accoundng services
Interest expense
Miscellaneous
Accumulated amodizatJon-
forgivable loans
leasehold improvements
Accumulated deprecia§on - building
Total expendib, lres
27,776 0 1,091,763 1,119,539
0 0 0 0
0 0 84,025 84,025
0 0 47,514 47,514
0 0 0 0
13,571 0 0 13,571
0 0 0 0
42,432 0 12,320 54,752
92,972 0 0 92,972
6,215 0 0 6,215
182,966 0 1,235,622 1,418,588
Excess of revenues over expenditures
Other financing sources(uses):
Operating transfers in(out):
Transfer From Federal/State Grant Fund
Transfer to Federal/State Grant Fund
Total other Iinancing soumes(uses)
(23,298) 90 3,446 (19,761)
5,663 0 0 5,663
0 0 0
5,663 0 0 5,663
Excess (Deficit)of revenues and other financing
sources over expenditures and other uses (17,635)
Fund balances at August 1,2003 12,390,065
Fund balances at May 31,2004 12,372,430
90 3,446 (14,099)
237,422 8,249,754 20,877,241
237,512 8,253,200 20,863,142
AGENDA
CORPUS CHRISTI INDUSTRIAL DEVELOPMENT CORPORATION
ANNUAL MEETING
DATE:
TIME:
PLACE:
Tuesday, June 22,2004
During the meeting of the City Council beginning at 10 a.m.
City Council Chambers
1201 Leopard St.
Corpus Chdsti, TX 78401
President Henry Garrett calls meeting to order
Secretary Armando Chapa calls roll
Board of Directors
Henry Garrett, President
Jesse Noyola, Vice President
Brent Chesney
Javier Colmenero
Melody Cooper
Bill Kelly
Rex A. Kinnison
Mark Scott
Samuel L. Neal Jr.
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Assr Secretary
Cindy O'Bden, Treasurer
Constance P. Sanchez, Asst. Treasurer
Election of Officers:
President
Vice President
Secretary
Assistant Secretary
Treasurer
Assistant Treasurer
General Manager
Approve Minutes of December 9, 2003
Financial Repo~
General Manager's Annual Report
Public Comment
8. Adjournment
TO:
FROM:
DATE:
SUBJECT:
Memorandum
Board Members of the Corpus Christi Industrial Development Corporation
George K. Noe, City Manager
June 17, 2004
Request for Annual Meeting of the Corpus Christi Industrial Development
Corporation (CCIDC) on June 22, 2004
I am requesting that a meeting of the Corpus Christi Industrial Development Corporation
(CCIDC) be held during the Council meeting of June 22, 2004 to consider the following
items:
Election of Officers: Each year at its annual meeting, the CCIDC elects officers. The
office of President is currently held by Henry Garrett, while the position of Vice
President is held by Jesse Noyola. The remaining positions are functionary positions
in nature, which traditionally are held by staff. I recommend a slate of City staff
members for the functionary positions as follows:
General Manager - George K. Noe, City Manager
Secretary - Armando Chapa, City Secretary
Assistant Secretary - Mary Juarez, Assistant City Secretary
Treasurer - Cindy O'Brien, Director of Finance
Assistant Treasurer - Constance P. Sanchez, Assistant Director of Finance
General Manager's Annual Report: The CCIDC was established in 1980 under the
Texas Industrial Development Corporations Act of 1979. The CCIDC has, as its
general charge, the provision of assistance to and encouragement of industrial,
manufacturing, warehousing, and commercial activities within Corpus Christi and the
Corpus Christi area. The CCIDC's principal tool has been [he utilization of Industrial
Revenue Bonds which are tax exempt under federal law. These bonds are not a
liability of the City, County, or the State and are solely payable from the loan repayment
agreements on various industrial warehousing or commercial projects. In addition,
some of the bends are backed by Letters of Credit or corporate guarantees.
The Corporation generates income from fees that it charges for the issuance of the
bonds. Since its establishment, the Corporation has utilized these fees for vadous
economic development studies and projects for the City of Corpus ChdstJ in an amount
in excess of $300,000. These projects have included such items as joint studies of Pod
activities and small capital improvement projects.
The CCIDC has issued approximately $65 million in industrial revenue bonds dudng its
existence which have been responsible for assisting in the financing of a number of
projects, including the following:
a. Hotel-Motel: Assisted in the creation of over 1,000 hotel and motel rooms (Holiday
Inn Airport, Sandy Shores, Marriott, Days Inn).
b. Warehousing and distribution: 35,000 sq. ft., including Williams distributing Co. and
W. W. Grainger, Inc.
c. industrial: 100,000 sq. ft. of manufacturing facilities for the De Dietrich USA, Inc.
project.
The CCIDC has also played a major role in the establishment of the City's State
Enterprise Zone. The CCIDC paid for the Enterprise Zone expansion applications and
in 1997 paid for the submission of a new Enterprise zone application. Since the Zone
was originally created in 1989, State approved Enterprise Zone designated projects
have generated over 3,270 jobs with total investment of approximately $2.2 billion. I
have attached a synopsis of the City of Corpus Christi's Enterprise Zone.
The CCIDC also funded an architectural study of the old Nueces County Courthouse
by the Killis-Almond firm. The CCIDC holds a piece of park land on Oso Creek
Parkway which was purchased with CCIDC funds. This land is now being used as the
City's match for a Coastal Management grant which has been awarded. The most
recent activity has been to act a an intermediary to hold approximately 100 acres of
land purchased from the State (State School property) to be used this summer as a
match for a Texas Parks & Wildlife Grant.
The latest CCIDC bond project was the issuance of bonds for the Airborne Freight
Corporation facility at Corpus Chdst International Airport in the amount of $1.1 million.
George K. Noe
City Manager
MINUTES
CORPUS CHRISTI INDUSTRIAL DEVELOPMENT CORPORATION
DECEMBER 9, 2003
7:08 P.M.
PRESENT
Board of Directors
Hem-y Garrett, President
Jesse Noyola, Vice President
Javier Colmenero (Arrived at 7:09 p.m.)
Brent Chesney (Arrived at 7:09 p.m.)
Melody Cooper
Bill Kelly
Mark Scott
Samuel L. Neal .Ir_
Officer~
George K. Noe, General Manager
Armando Chapa, Secretary
Mary Juarez, Asst. Secretary
Lee Ann Dumbauld, Treasurer
Constance P. Sanchez, Asst. Treasurer
ABSENT
Rex Kinnison
President Garrett called the meeting to order in the Council Chambers of City Hall. City
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.
President Garrett called for the approval of the minutes of May 13, 2003. Mr. Scott made
a motion to approve the minutes as presented, seconded by Ms. Cooper, and passed.
President Garrett called for the election of treasurer to fill a vacancy. General Manager Noe
recommended that Ms. Cindy O'Brien, Finance Director, be appointed as treasurer. Mr. Scott made
a motion to appoint Ms. O'Brien, seconded by Mayor Neal, and passed.
President Garrett called for the financial report. General Manager Noe referred to a
statement of assets and liabilities in the Council's packet_ The Council had no questions.
President Garrett opened discussion on Item 6, the consideration of a resolution amending
a resolution adopted in 1984 in connection with f'mancing the Medical Pla?a building located on
South Staples Street north of Six Points. City Manager Noe explained that this resolution would
allow for the refunding of bonds issued in 1984 for the Medical Plaza Associates project to obtain
a lower interest rate. He said Mr. JeffLeuschell, the city's bond counsel, had reviewed and prepared
the resolution, and staffwas recommending approval. Secretary Chapa polled the Board for theft
votes as follows:
Minutes, CCIDC meeting
December 9, 2003, p. 2
Resolution amending a resolution authorizing the issuance of Corpus Christi Industrial
Development Corporation Revenue Bonds, Series 1984 (Medical PlaTa Associates Project)
The foregoing resolution was passed and approved with the following vote: Garrett,
Chesney, Colmenero, Cooper, Kelly, Neal, Noyola, and Scott, voting "Aye"; Kinnison was
absent.
President Gan-eR called for public comment, and there was none. There being no further
business to come before the corporation, President Garrett adjourned the meeting at 7:13 p.m. on
December 9, 2003.
Corpus Christi Industrial Development Corporation
Balance Sheet
May 31, 2004
Assets
Current assets:
Cash
Investments
Receivables:
Accounts
Accrued Interest
Total assets
$ 4,950.00
47,209.99
141.97
$ 52,301-96.
Liabilities and Fund Balance
Liabilities:
Accounts payable
Total liabilities
Fund balance:
Designated
Undesignated
Total fund balance
Total liabilities and fund balance
52,301.96
52,301.96
$ 52.301.96
Corpus Christi Industrial Development Corporation
Summary of Transactions
For ten months ended May 31, 2004
Fund balance at August 1,2003
$ 46,806.23
Revenues:
Interest earned
Change in fair value of investments
Issuer's annual fee
Total revenues
403.76
5,091.97
5,495.73
Expenditures:
Grant
Miscellaneous
Total expenditures
Fund balance at May 31, 2004 $ 52,301.96