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HomeMy WebLinkAboutAgenda Packet City Council - 07/29/2008CITY COUNCIL AGENDA JULY 29, 2008 ta _-..:■ crs -_ ewp AGENDA CITY OF CORPUS CHRISTI REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD ST. CORPUS CHRISTI, TEXAS 78401 JULY 29, 2008 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 opportunity to address the Council at approximately 12:00 p.m. or at the end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state your name and address. Your presentation will be limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Si Usted desea dirigirse al Concilio y cree que su ingles es limitado, habra un interprete ingles- espanol en todas las juntas del Concilio para ayudarle. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (at 361 - 826 -3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Henry Garrett to call the meeting to order. B. Invocation to be given by Ms. Jeanne Gardiner, Sr. Minister Assistant, Unity By The Sea. 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 Henry Garrett Mayor Pro Tem John Marez Council Members: Melody Cooper City Manager George K. Noe Larry Elizondo, Sr. City Attorney Mary Kay Fischer Mike Hummel) City Secretary Armando Chapa Bill Kelly Priscilla G. Leal Michael McCutchon Nelda Martinez E. MINUTES: 1. Approval of Regular Meeting of July 15, 2008. (Attachment # 1) Agenda Regular Council Meeting July 29, 2008 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) F. BOARDS & COMMITTEE APPOINTMENTS: (NONE) G. EXPLANATION OF COUNCIL ACTION: For administrative convenience, certain of the agenda items are listed as motions, resolutions, orordinances. 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. H. CITY MANAGER'S REPORT Upcoming Items I. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been fumished 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 requiring separate discussion have been acted upon. The remaining items will be adopted by one vote. CONSENT MOTIONS, RESOLUTIONS, ORDINANCES AND ORDINANCES FROM PREVIOUS MEETINGS: (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration) 2.a. Resolution amending Resolution No. 027649, which approved projects to be funded through tax notes, to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount. (Attachment # 2) Agenda Regular Council Meeting July 29, 2008 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 2.b. Ordinance amending Ordinance No. 027708 which authorized issuance of tax notes in principal amount of $22,260,000, to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount. (Attachment # 2) 2.c. Motion approving the purchase of a spotting tractor from Shoppa's Material Handling, LTD, of Fort Worth, Texas in accordance with Bid Invitation No. BI- 0213 -08, based on most advantageous bid for a total amount of $86,350.97. The tractor will be used by Solid Waste Services and is an addition to the fleet. Funding is available in the Solid Waste 2008 Tax Notes Capital Improvement Project (CIP) Fund. (Attachment # 2) 3. Resolution approving a Small Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation (4A Board) and ACCI6N Texas, Inc. for an interest buy -down program for small businesses; and authorizing the City Manager or his designee to execute a Small Business Incentive Project Support Agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the ACCI6N Texas Small Business Incentive Agreement. (Attachment # 3) 4. Resolution approving an agreement to grant business incentives between the Corpus Christi Business and Job Development Corporation (4A Board) and SCORE Chapter 221, which grants $50,000 in business incentives for the operation of a program to assist small and start-up businesses in Corpus Christi; and authorizing the City Manager or his designee to execute a business incentives project agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the agreement to grant business incentives. (Attachment # 4) Agenda Regular Council Meeting July 29, 2008 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 5. Motion authorizing the City Manager or his designee to execute Change Order No. 5 to a Construction Contract with Bay Limited of Corpus Christi, Texas in an amount not to exceed $245,759 for a revised contract value of $7,918,270.20 for additional slope paving and repair of a headwall for the Corpus Christi International Airport West General Aviation Rehabilitation and Drainage Phase V Improvement Project. (Attachment # 5) 6. Motion authorizing the City Manager or his designee to execute Change Order No. 17 to a Construction Contract with SLC Construction, LP, of Conroe, Texas in the amount of $91,270 for a total re- stated fee of $12,142,770.35 for the installation of an 8- inch water line on Winnebago Street between Carancahua and Upper Broadway Streets. (Attachment # 6) 7. Resolution declaring and dedicating a 4.000 -acre (174,246 s.f.) tract of land (Wetland Preservation Site, Tract #1) and a 2.273 - acre (99,030 s.f.) tract of land (Wetland Buffer Zone, Tract#2) as a Wetland Preserve; authorizing the City Manager and his designee to execute and record the attached real estate instrument to that effect; and authorizing the City Manager and his designee to take actions necessary to maintain the property as a Wetland Preserve subject to and in accordance with the success criteria in the "Final Wetland Mitigation Plan for Master Channel 27 Drainage Improvements," as revised on January 29, 2008, Department of the Army Permit No. 24328. (Attachment # 7) J. PUBLIC HEARINGS: AMENDMENT TO MASTER SANITARY SEWER PLAN: 8. Public Hearing and Ordinance to consider amending the City's Comprehensive Plan by amending the Master Sanitary Sewer Plan (Wastewater Collection System Master Plan for the Allison Wastewater Treatment Plant Service Area) by extending the boundary of Master Plan Basin 26 in the Allison Wastewater Treatment Plant Service Area to include approximately 50 acres owned by Turner Industries Group, LLC, including Turner Industries Tract, Block 1, Lot 1 and 24.559 acres out of the Consolidated El Paso Irrigation and Manufacturing Company Tract, State Survey 500, Abstract 582, Nueces County, Texas, that adjoins Turner Industries Tract, Block 1, Lot 1; providing for publication. (Attachment # 8) Agenda Regular Council Meeting July 29, 2008 Page 5 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) K. REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES: 9.a. Ordinance appropriating $3,200,000 from the Unreserved Fund Balance in the Fund No. 4010 for Water Department Operational Costs; changing the FY 2007 -2008 Operating Budget adopted by Ordinance No. 027352 by increasing expenditures by $3,200,000. (Attachment # 9) 9.b. Ordinance appropriating $300,000 from excess revenues in the Maintenance Services Fund No. 5110 for unbudgeted increased fuel costs; changing the FY 2007 -2008 Budget adopted by Ordinance 027352 by increasing both revenues and expenditures by $300,000 each. (Attachment # 9) L. PRESENTATIONS: (NONE) M. 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 FORMAT 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 dirige a la junta y cree que su ingles es limitado, habre un interprete ingles- espanol en la reunion 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. Agenda Regular Council Meeting July 29, 2008 Page 6 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) N. 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 Govemment 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 authorizing the executive session will be publicly announced by the presiding office. O. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at 4: `LSD p.m., on July 23, 2008. Armando Chapa City Secretary 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 Wednesday before regularly scheduled council meetings. If technical problems occur, the agenda will be uploaded on the Internet by Thursday morning. Symbols used to highlight action items that implement council goals are on attached sheet. SUPPLEMENTAL AGENDA REGULAR COUNCIL MEETING CITY OF CORPUS CHRISTI, TEXAS CITY HALL -COUNCIL CHAMBERS 1201 LEOPARD ST. JULY 29, 2008 10:00 A.M. PUBLIC NOTICE is hereby given pursuant to Texas Open Meetings Act, of the following addition to the agenda of the City Council to be considered at the above meeting: 10. Motion to authorize the City Manager or designee to execute a First Amendment to Commercial Property Sale and Purchase Agreement and documents necessary to acquire property from Beach Center Corporation located at 501/513 Chaparral Street aka Lots 1-4, Block 11, Beach Portion, Corpus Christi, Texas (approximately 24,990 square feet). POSTING STATEMENT: This supplemental agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at (v: / Sp.m. July 25, 2008. ~_.c~-•. --~^"~ Armando Cha City Secretary City Council Goals 2007 -2009 I': )WNI Develop Street Plan Texas A &M University Corpus Christi Expansion Neighborhood Improvement Program (NIP) and Model Block Expansion Development Process Improvement Bond 2008 Coliseum Plan Master Plan Updates Improve Code Enforcement Downtown Plan Charter Review 1 PRESENT Mayor Henry Garrett Mayor Pro Tem John Marez Council Members: Melody Cooper* Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla Leal Michael McCutchon Nelda Martinez MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting July 15, 2008 - 10:00 a.m. City Staff: City Manager George K. Noe City Attomey Mary Kay Fischer City Secretary Armando Chapa *Arrived at 10:21 a.m. Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Reverend Greg Hackett with First United Methodist Church and the Pledge of Allegiance to the United States flag was led by Council Member John Marez. 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 Garrett referred to Item 1 and the following board appointments were made: Corpus Christi Downtown Management District George Glower (Appointed) Wayne Lundquist (Reappointed) Bill Durrill (Reappointed) Raymond Gignac (Reappointed) Wes Hopkins (Reappointed) Williard Hammonds (Reappointed) Chad Magill (Reappointed) * * * * * * * * * * ** Mayor Garrett called for consideration of the consent agenda (Items 2 - 10). Mr. Robert Sarlay requested that Item 2 be pulled for individual consideration. Council members requested that Items 2, 4, 5, 6, and 7 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 3. MOTION NO. 2008 -169 Motion approving a service agreement with Heath Consultants, of Houston, Texas for Natural Gas Leakage Survey Services in accordance with Request for Proposal No. BI- 0169-08, based on best value for an estimated annual expenditure of $90,580. The term of the agreement will be for three years. Funding is available in the Gas Operations budget for FY 2007 -2008 and has been requested fort FY 2008 -2009. Minutes — Regular Council Meeting July 15, 2008 — Page 2 The foregoing motion was passed and approved with the following votes: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. 8.a. MOTION NO. 2008 -172 Motion approving the Arterial Transmission and Grid Main Construction and Reimbursement Agreement submitted by Turner Industries Group, LLC, owner and developer of Turner Industries Tract, Block 1, Lot 1 located south of IH -37 Access Road and east of Clarkwood Road for the installation of 2,322 linear feet of 16-inch PVC arterial transmission main. The foregoing motion was passed and approved with the following votes. Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. 8.b. ORDINANCE NO. 027759 Ordinance appropriating $319,025.32 from the No. 4030 Water Arterial Transmission & Grid Main Trust Fund to reimburse Turner Industries Group, LLC for the installation of 2,322 linear feet of 16 -inch PVC arterial transmission main for development of Turner Industries, Block 1, Lot 1 as specified in the Arterial Transmission and Grid Main Construction and Reimbursement Agreement. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. 9.a. MOTION NO. 2008 -173 Motion approving the Sanitary Sewer Collection Line Extension Construction and Reimbursement Agreement submitted by Tumer Industries Group, LLC, owner and developer of Tumer Industries Tract, Block 1, Lot 1, located south of IH -37 Access Road and east of Clarkwood Road for the installation of 692 linear feet of 18 -inch PVC sanitary sewer trunk line. The foregoing motion was passed and approved with the following votes: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. 9.b. ORDINANCE NO. 027760 Ordinance appropriating $257,884.97 from the No. 4220 Sanitary Sewer Trunk System Trust Fund to reimburse Turner Industries Group, LLC for the installation of 692 linear feet of 18- inch PVC sanitary sewer trunk line for development of Turner Industries, Block 1, Lot 1 as specified in the Sanitary Sewer Trunk Line Construction and Reimbursement Agreement. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. 10. ORDINANCE NO. 027761 Abandoning and vacating a 7,293- square foot portion (50' wide x 145' long) of an undeveloped and unsurfaced, dedicated public right -of -way (Charlotte Drive) out of Lot 1, Block 1, and Lot 1, Block 2, Tropic -F ights Unit 2, adjacent to and south of the Minutes — Regular Council Meeting July 15, 2008 — Page 3 Mediterranean Drive public right -of -way; subject to compliance with the specified conditions. (First Reading 07/08/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. Mayor Garrett opened discussion on Item 2 regarding EMS Billing and Collections Services Robert Sarlay, President of Texas Medical Data Systems, ask the Council to reconsider the award of the contract to Southwest General Services, a non -local firm. Mr. Sarlay spoke regarding the one point scoring differential on the scoring matrix; Texas Medical Data System's 20 -year billing record with the City; the local established office; and the difference in the proposed systems. Mr. Sarlay stated that Texas Medical Data Systems would like to continue to work with the City. Assistant Director of Financial Services Michael Barrera spoke regarding the Request for Proposal Process; previous performance by Texas Medical Data Systems; and the concems with integration of the systems. Scott Fathergill, CEO of Southwest General Services, spoke regarding the transition period for the new contract and collections. Council members asked questions regarding the location of the Texas Medical Data System office; the difference between Texas Medical Data Services and National Reimbursement Services; the difference in the total annual costs; the amount of time the City has done business with Texas Medical Data Systems; concerns with the Texas Medical Data Services system; whether there have been conflicts with data sharing in the past; whether the main contributing factor of the recommendation is that Southwest General Services has an integrated system; the services that are integrated; the number of years for the contract; whether there is opportunity for a bidder to change their percentage rate once bids have been received; whether the Fire Department is prepared for the loss of funds collected during the transition period; the nature of the guaranteed revenue; penalty fees; the guarantee difference from Southwest General Services and Texas Medical Data Systems; how the criteria for experience of firm and service was determined; whether disregarding recommendations and the results of the bidding process will have an effect on future contractors competing for contracts; if Southwest General Services plans on opening a local office; the funding budgeted for this service; the requirements for the service; how long Southwest has been in existence; whether Southwest services any cities in South Texas; the members of the evaluation committee; whether the evaluation team was the same as the previous bidding process; whether the same evaluation model was used; whether staff reviewed collections percentages, billing processes, and performance; and the lag in collections. City Secretary Chapa polled the Council for their votes as follows: 2. MOTION NO. 2008 -168 Motion approving a service agreement with SouthWest General Services, of Dallas, Texas for Emergency Medical Services Billing and Collections Services in accordance with Request for Proposal No. BI- 0106 -08, based on best value for an estimated annual expenditure of $297,000. The term of the contract will be for three years with an option to extend the agreement for up to two additional twelve -month periods subject to the agreement of the contractor and the City Manager or his designee. The foregoing motion was passed and approved with the following votes: Garrett, Cooper, Elizondo, Hummell, Kelly, McCutchon, Marez, and Martinez, voting "Aye "; Leal voting "No ". -3- Minutes — Regular Council Meeting July 15, 2008 — Page 4 * * * * * * * * * * * * * Mayor Garrett referred to Item 15 regarding a presentation on Operation K.E.Y.S. (Keeping Every Youth in School) — A High School Dropout Recovery Effort. Director of Education Initiatives JoAnn Hooks introduced the core partnership team members including Corpus Christi Independent School District (CCISD) Superintendent Scott Elliff, CCISD Director of High School Completion Monica Bayarena, and the Most Reverend Bishop Edmond Carmody, Diocese of Corpus Christi. Bishop Carmody thanked the Council for appointing a Director of Education Initiatives. Bishop Carmody announced that a walk would take place on September 6th to visit the homes of young people not registered for school this year. Bishop Carmody stated that the initiate to keep young people in school is important to deal with other challenges in the community including the problems with homelessness and diabetes. Ms. Hooks referred to a powerpoint presentation including statistics on the high school dropout epidemic; the dramatic consequences of dropping out; call of action; and the walk planning. Ms. Hooks also recognized the committee members that were present. Superintendent Elliff provided a background of the Operation K.E.Y.S. program in Houston; the results from Houston's "Reach Out to Dropouts" Walk; the pilot initiative developed by CCISD; the goals of the walk; CCISD annual dropout rate; and CCISD completion rate. Ms. Bayarena provided information on the walk teams; events prior to the walk, the day of the walk, and after the walk; and a timeline. Bishop Carmody challenged Council Member Mike Hummel) to the "Council versus The Cleric" Racquetball Game to promote the walk to fight diabetes. * * * * * * * * * * * ** Mayor Garrett opened discussion on Item 4 regarding the purchase of two carrier mounted telescopic boom excavators for the Street Department. Council Member McCutchon asked questions- regarding the term to pay of the tax notes and whether the debt transfers to another fund. City Manager Noe stated that all of the tax notes are paid off between six (6) and seven (7) years, with the bulk paid off within two years. Mr. Noe explained that debt service is paid out of the debt service fund and tax notes appropriated out of the general fund. Director of Financial Services Cindy O'Brien added that once the tax notes are paid off, the equipment becomes a fixed asset for the Street Department. City Secretary Chapa polled the Council for their votes as follows: 4. MOTION NO. 2008 -170 Motion approving the purchase of two (2) Carrier Mounted Telescopic Boom Excavators from Waukesha- Pearce Industries, Inc., of Corpus Christi, Texas, based on only bid, in accordance with Bid Invitation No. BI- 0190 -08 for a total amount of $490,596. The carrier mounted telescopic boom excavators will be used by the Street Department. The two units are replacements to the fleet. Funding is available in the Street 2008 Tax Notes Capital Improvement Project (CIP) Fund. The foregoing motion was passed and approved with the following votes: Garrett, Elizondo, Hummel), Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. Mayor Garrett opened discussion on Item 5 regarding the establishment of a FICA alternative plan for temporary and part-time employees. In response to Ms. Leal, Assistant Director of Financial Services Michael Barrera stated that there would be no cost to the City to enter into this agreement. Ms. Leal asked whether an employee can continue to put money in this retirement system if the employee leaves employment witb.4ie City. Director of Human Resources Cynthia Minutes — Regular Council Meeting July 15, 2008 — Page 5 Garcia stated that this retirement program is only during employment with the City and the employee can withdraw their funds without a penalty. City Secretary Chapa polled the Council for their votes as follows: 5.a. RESOLUTION NO. 027756 Resolution authorizing and establishing a FICA alternative plan under IRC § 457 (B), for temporary employees and part -time employees who work less than twenty (20) hours per week. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooper was absent. 5.b. MOTION NO. 2008 -171 Motion approving a service agreement with Nationwide Retirement Solutions, Inc., of Dublin, Ohio for FICA Altemative Plan services, in accordance with Request for Proposal No. BI- 0219-07. The term of the service agreement will be for five years with an option to extend for up to two additional twelve -month periods, subject to the approval of the service provider and the City Manager or his designee. The foregoing motion was passed and approved with the following votes. Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. Mayor Garrett opened discussion on Item 6 regarding the development of the Nature Center within the Oso Conservation Interpretive Park on Oso Bay. Council Member Hummell asked for information about the Nature Center. Director of Parks and Recreation Sally Gavlik said the Nature Center will be a completely green building with indoor and outdoor classrooms and an exhibit hall space for areaschools _to-take_the_children. Mr. Hummell asked whether the square footage has been determined. Ms. Gavlik explained that the square footage is currently 50,000 square -feet but may be modified. In response to Mr. Hummell, Ms. Gavlik stated that the grant is only for the indoor facility and the City is matching $750,000 from the Enrichment Program. Council Member Elizondo asked if the Nature Center was located near the regional park. Ms. Gavlik responded that this area was located at the opposite end of the regional park. City Secretary Chapa polled the Council for their votes as follows: 6. RESOLUTION NO. 027757 Resolution authorizing the City Manager or his designee to submit a grant application to the Texas Parks and Wildlife Department in the amount of $750,000 for the purpose of participating in the Local Park Grant Program to develop the Nature Center to be located within the Oso Conservation Interpretive Park on Oso Bay, with a City match of $750,000 in the No. 4720 Community Enrichment Fund; dedicating the proposed site for permanent public park and recreation uses. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooper was absent. Mayor Garrett opened discussion on Item 7 regarding the passenger facility charges for the Corpus Christi International Airport. Council Member Leal asked for the balance of the unreserved fund. Director of Aviation Fred Segundo stated that the fund balance was approximately $1.9 million prior to this transaction. A brief discussion ensued regarding the Airport Board's review of the Minutes - Regular Council Meeting July 15, 2008 - Page 6 transactions. City Manager Noe said staff would brief the Airport Board of this transaction at their next meeting and provide the Council with any comments or concerns. City Secretary Chapa polled the Council for their votes as follows: 7. ORDINANCE NO. 027758 Ordinance appropriating $1,856,054 from the unreserved fund balance in Passenger Facility Charge Fund No. 4621 and transferring and appropriating $1,076,812 into the Airport 2000A Debt Service Fund No. 4640 and $779,242 into the Airport 2000B Debt Service Fund No. 4641 for debt service on airport improvements; changing the FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 to increase appropriations by $1,856,054. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett called for a brief recess to present proclamations and listen to public comment. Mayor Garrett called for petitions from the audience. Rebecca Stroisch, 920 Waco Street, asked the Council to reinstate the ADA inspector position and reconsider cutting the intake position in the Human Relations Department. Pat Suter, 1002 Chamberlin, thanked the Council for their appointments to the Clean Cities Committee and Council Member Martinez for emphasizing recycling. Ms. Suter asked the Council to show their commitment to recycling prior to the April election. Mike Staff, Corpus Christi Police Officers Association, invited the Council to attend an informal seminar to allow their consultant to provide their findings. Mr. Staff asked the Council to - table the- health -care budget until the POA and Firefighters Associations' consultant can make a presentation to the City Council. Mr. Staff also spoke regarding GASB 45. Carlos Torres, President of the Corpus Christi Firefighters Association, asked the Mayor or five council members to place an item on the agenda to allow the Associations' consultant to present their findings to the Council. Roland Garza spoke regarding council compensation and the areas excluded from the proposed bond proposal. Jaime Valdez, EEOC Headquarters, spoke regarding the elimination of the intake officer in the Human Relations Department. J.E. O'Brien, 4130 Pompano, spoke regarding the budget public hearing and requested that the Council schedule a time certain when adopting the budget and setting the tax rate. Bob Algeo, 15629 Three Fathoms, spoke regarding metal theft; buming of wooden pallets at the beach; and using the sea turtle as the logo on the water tower. David Loeb, 921 Chaparral, thanked the Council for including the Memorial Coliseum, ADA improvements downtown, and wayfinding in the proposed bond issue. Mr. Loeb also spoke regarding the need for a third pump station and an overlay for Water Street. Heidi Hodva, Downtown Management District, also addressed the need for a third pump station downtown. Rene Saenz, 6022 Sweet Gum, thanked Director of Education Initiatives JoAnn Hooks for today's presentation and spoke regarding the increase in insurance rates for police and fire. Jerry Garcia, President of the Southside Youth Sports Complex, spoke regarding organizations eligible for Community Development Block Grant (CDBG) funding and including the Greenwood Sport Complex in the proposed bond issue. Jimmy Escareno, President of Westside Little League, stated that the City had sent two letters requesting that the fields be improved to playable condition within 90 days and termination of the lease. Mr. Escareno added that the fields are in playable condition and provided photos showing the maintenance of 4l4- fields. Rick Reyes, Westside Little League, Minutes — Regular Council Meeting July 15, 2008 — Page 7 requested that the league keep their lease. Mr. Reyes provided a handout of photos showing the condition of other youth complexes and stated that the Westside fields are in great shape and playable condition. Moses Leyba, 4254 Archdale, stated that the pictures of Westside Little League that were presented at the previous meeting were misleading. Abel Alonzo, 1701 Thames, stated that he was upset by a comment made that the Hispanic community is misrepresented. ............. Mayor Garrett announced the executive sessions, which were listed on the agenda as follows: 17. Executive session under Texas Government Code Section 551.071 regarding Amulfo Garcia vs. City of Corpus Christi; Civil Action No. 06 -198; In the United States District Court, with possible discussion and action related thereto in open session. 18. Executive session under Section 551.072 of the Texas Government Code to deliberate the purchase, exchange, lease or value of real property — a 7.197 -acre tract of land out of Lot 12, Section 31, Flour Bluff and Encinal Farm and Garden Tracts, for the South Guth Ball Field Relocation Project, with possible discussion and action related thereto in open session. 19. Executive Session under Texas Government Code Section 551.071 to conduct a private consultation with its attomey regarding the City's water supply contract with Nueces County Water Control and Improvement District #4, with possible discussion and action in open session. Mayor Garrett recessed the regular Council meeting to hold a meeting of the Corpus Christi Community Improvement Corporation (CCCIC). Mayor Garrett reconvened the Regular Council Meeting. Mayor Garrett referred to Item 11, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0608 -02 Eloy Salazar and Ricardo Martinez: A change of zoning from "F -R" Farm -Rural District on Tract 1 to an "1 -2" Light Industrial District resulting in a change of land use from agricultural to light industrial use and a change of zoning from "F -R" Farm -Rural District on Tract 2 to "B-4" General Business District resulting in a change of land use from agricultural use to commercial use on property described as being 8.012 acres (Tract 1) out of Lots 25 and 26, Section 21, Flour Bluff Encinal Farm and Garden Tracts, located south of Rodd Village and west of the future extension of Rodd Field Road and 18.092 acres (Tract 2) out of Lots 8 and 9, Section 22, Flour Bluff Encinal Farm and Garden Tracts, located south of Rodd Village and west of the future extension of Rodd Field Road. City Secretary Chapa stated that the Planning Commission and staff recommended approval of the "1 -2" Light Industrial District on Tract 1 and approval of the "B-4" General Business District on Tract 2. No one appeared in opposition to the zoning change. Mr. Marez made a motion to close the public hearing, seconded by Ms. Cooper, and passed. Mr. Chapa polled the Council for their votes as follows: —7— Minutes — Regular Council Meeting July 15, 2008 — Page 8 11. ORDINANCE NO. 027762 Amending the Zoning Ordinance, upon application by Eloy Salazar and Ricardo Martinez, by changing the Zoning Map in reference to 8.012 acres (Tract 1) out of Flour Bluff Encinal Farm and Garden Tracts, Lots 25 and 26, Section 21, from "F -R" Farm -Rural District to "1 -2" Light Industrial District and 18.092 acres (Tract 2) of Flour Bluff Encinal Farm and Garden Tracts, Lots 8 and 9, Section 22, from "F -R" Farm -Rural District to "B-4" General Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty; providing for publication. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Marez, voting "Aye'; Martinez was absent. * * * * * * * *x. *** Mayor Garrett opened discussion on Item 12 regarding the first reading to adopt the FY2008- 2009 operating budget and ratifying the increase in property tax revenues from last year's operating budget. Assistant City Manager Oscar Martinez referred to a powerpoint presentation including the proposed amendments to the general fund; the revised adjustments to the general fund projected fund balance; the summary of proposed fund balances for the enterprise funds, intemal service funds, debt service funds, and special revenue funds; and the budget calendar. Mr. Martinez recommended that a motion be made to amend the original budgeted amount of $654,498,684 to $654,740,297 to include the proposed amendments. Council members asked questions regarding the possibility for an increase for city employees; whether the proposed employee raise would be considered on July 22nd; whether the water tap fees are incorporated in this budget; whether an increase for the Downtown Management District would be a potential item; providing ambulance service full time on the island; the number of fire engines on the island; whether 4 -wheel drive fire vehicles on the beach are equipped with the proper equipment; whether the budget sets the tax rate; the change in the budget cycle; staffing in the Fire Department to cover additional ambulances; the attrition rate for the Fire Department; the general obligation debt service fund; whether the seawall improvement fund can be used for seawall related costs; whether the seawall debt will be retired early; the expected remaining debt for the seawall in 2013; the amount of interest paid annually for all the City's obligations; a four (4)day work week; the time taken from the Human Relation director to do the work of the ADA inspector and the impact to the department; municipal court judges salaries; vacancies citywide; the number of frozen positions; the effect of three frozen positions to the budget; the representatives from the Volunteer Center supervising people doing community service at Municipal Court; the number of vacant or frozen positions that are the same level as the Human Relation department position; and ways to offset increased costs. Ms. Cooper made a motion to amending the FY2008 -2009 proposed budget by increasing Code Enforcement - $217,733; Sister City - $17,943; Marina Advertising $22,000; and Arts Subgranting - $18, 067; and reducing the citizen survey - $5,000 and the Chief of Staff position - $29,130 for a new total amount of $654,740,297. The motion was seconded by Ms. Martinez and passed. Minutes — Regular Council Meeting July 15, 2008 — Page 9 City Manager Noe said that staff would provide information on options for funding the proposed employee increase. There was a general consensus of the Council to direct staff to bring back a funding plan or alternatives funding sources for the Volunteer Center. Mayor Garrett called for comments from the audience. Abel Alonzo, Chairman for the Committee for Persons with Disabilities, spoke regarding the Intake and ADA investigator positions for the Human Relations Department and asked the Council to consider the safety of the disabled community. Mike Staff, 3122 Leopard, asked questions regarding the funding earmarked for GASB 45 and the amortized payment. Carlos Torres, President of the Corpus Christi Firefighters Association, asked questions regarding the 4% salary increase recommended for firefighters and whether there was a salary comparison done of other cities. City Secretary Chapa polled the Council for their votes as follows: 12.a. FIRST READING ORDINANCE Adopting the City of Corpus Christi budget for the ensuing Fiscal Year beginning August 1, 2008; to be filed with the County Clerk; appropriating monies as provided in the budget. The foregoing ordinance was passed and approved as amended on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". 12.b. FIRST READING ORDINANCE Ordinance to ratify increase of $5,150,870 in Property Tax Revenues from last year's Operating Budget as reflected in the FY 2008 -2009 Operating Budget. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". * ** * * * * ** ** ** Mayor Garrett opened discussion on Item 13 regarding the Compensation and Classification Plan for FY2008 -2009. Director of Human Resources Cynthia Garcia provided a list of recommended amendments to the compensation and classification plan including eliminating of the definition of City Manager, full -time, part-time and temporary employees; adding Park and Recreation operations skill based pay program; adjusting the minimum wage increase to reflect upcoming changes; adjusting ranges for Police Commander; implementation of a career land for attorneys and information technology; adjustments to the identification department salary structures; clarifying the definition of full -time, part-time, and temporary employees; elimination of coverage for part-time employees in the health program and grandfathering employees that currently have these benefits; clarifying holiday, leave benefits, buyback benefits, and sick leave accrual eligibility, plan II provisions; clarifying and correcting military leave; and clarifying nepotism language. Mayor Garrett called for comments from the audience. Mike Staff, Corpus Christi Police Officers Association, spoke regarding the pay salary for crime scene investigators, finger print examiners, and police commanders. Council members asked questions regarding the health plan coverage and the crime scene investigator career ladder changes. -9- Minutes — Regular Council Meeting July 15, 2008 — Page 10 Ms. Garcia stated that Section 39- 309(a) should be amended to include the implementation of the alternate choice plan for Citicare. Ms. Martinez made a motion to amend Section 39 -309. The motion was seconded by Mr. Elizondo and passed. There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 13. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 39, Personnel, Article III, Employee Compensation and Classification System, to revise definitions of Full -time and Part-time Employees, add Parks and Recreation skill -based pay grades, revise Step Pay Rates for Metro -Com Technician, revise Minimum Wage, revise Police Management pay range, add Attorney Career Ladder, add Information Technology Career Ladder, designate FICA Altemative Plan participation by Temporary Employees, revise Part-Time Employee Eligibility and participation in (1) Group Hospitalization (2) Term Life Insurance (3) Disability Insurance (4) Holiday, Sick, Bereavement, Vacation and other leave; clarify Airport Safety Officer eligibility in Vacation Leave Accrual; modify Sick Leave "cash -in" provision; provide that Employee may use Bereavement Leave in death of Son -in -Law, Daughter -in -Law, and Step - Parent; to provide for 15-day paid Military Leave in one calendar year; to amend Nepotism Section to (1) prohibit Department Head hiring or review of Employee Son -in -Law, Daughter - in -Law, (2) clarify Spouse's relatives, and (3) add provision to continue relationship by affinity despite divorce or death if Child of Marriage is living; to combine Plan I and Plan II Personal Leave into one plan; to combine Plan I and Plan II Bereavement Leave into one plan; repealing all other ordinances, and rules, or parts of ordinances and rules, in conflict with this ordinance; providing for an effective date. The foregoing ordinance was passed and approved as amended on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". Mayor Garrett opened discussion on Item 14 regarding fee and rate increases in support of the FY2008 -2009 proposed budget. Assistant City Manager Oscar Martinez announced that Item 14.e. was withdrawn by staff. Mr. Martinez provided a brief summary of the proposed rates including proposed solid waste resources recovery fees; solid waste cart delivery fees; repealing the nonresident library fee; library photocopy fees; reinstating a library collection fee; utility rate increases for water, gas, and wastewater; the cost of service model for water revenues; storm water services; gas commercial meter fees; wastewater fees; revising annual well inspection fees; recovery of electrical services fees for marina slips; and fees for athletic programs. Council members asked questions regarding whether the executive session discussion on municipal water rates will be effected with the passage of the utility rate fees; the timeframe for the mediation process with the Nueces County Water District; the reduction of meter charges for outside city limit customers; and utility recovery fees for the marina. Mayor Garrett called for comments from the audience Charlie Zahn, Nueces County Water District, asked that the mediation timeframe be extended for longer than 60 days. Mr. Zahn thanked the Council for their willingness to allow the district to resolve the water rate issues. City Secretary Chapa polled the Council for their votes as follows: -10— Minutes — Regular Council Meeting July 15, 2008 — Page 11 14.a. FIRST READING ORDINANCE Amending the Codes of Ordinances, Chapter 21, Article IV, Section 21-40, by revising solid waste resource recovery fees; enacting a cart delivery fee; providing an effective date; providing for publication; and providing for penalties. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". 14.b. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 2, Section 2 -79 "Fees ", by repealing the annual nonresident library fee; providing for a library photocopy fee of $0.15 per page, and reinstating a library collection fee of $10 for accounts referred to collection; providing for an effective date; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummel], Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". 14.c. FIRST READING ORDINANCE Amending the Code of Ordinances, City of Corpus Christi, Chapter 55, Utilities, regarding Water, Gas and Wastewater rates and fees; providing for an effective date; and providing for publication. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, McCutchon, Marez, and Martinez, voting "Aye "; Leal voting "No ". 14.d. FIRST READING ORDINANCE Amending the Code of Ordinances, Chapter 35, Article V, Section 35 -117, Entitled "Annual Well Inspections ", by revising the fees; providing for an effective date; providing for publication and providing for penalties. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Cooper, Elizondo, Hummel!, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". publieatior_ 14.f. RESOLUTION NO. Resolution authorizing adjustment of parks, recreation, cultural and leisure time activities rental and recreational fees; adding new rental fees and recreational fees for Fiscal Year 2008 -2009; providing for publication; providing for an effective date. —11— Minutes — Regular Council Meeting July 15, 2008 — Page 12 The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ". • • • • • • * • * * Mayor Garrett referred to Item 16 regarding the Bond Issue 2008 update. City Manager Noe referred to a powerpoint presentation including a background of the process; additional projects; projects deleted or modified; overall costs; and next steps. Council members asked questions regarding the status of the Crosstown Commons project; whether the Crosstown Commons land has been purchased; whether Ocean Drive was eligible for Texas Department of Transportation (TxDOT) participation; the Metropolitan Planning Organization's process for changing TxDOT projects; the two phases for Williams Drive; widening Williams Drive; the drainage on Williams Drive; whether Kostoryz will receive additional turning lanes; bike and pedestrian improvements on Kostoryz; the type of street that Manshiem is considered; whether residential streets are included in the project; setting a timeline for completing projects; public notification of the Bond issue; the affects of inflation on projects; Phase III of the Bayfront Master Plan project; the timeframe to complete Phase I of the Bayfront Master Plan project; the mitigation for Laguna Shores; plans and locations for the hike and bike trails; pay as you go financing; issuing debt; bond counsel and financial advisor fees; the reason that the financial fees for Packery Channel issuances were more expensive; the reason that Coastal Securities was used for the Packery Channel issuances; the reason that M.E. Allison was not used as the advisor for the Packery Channel issuance; the underwriters for other bonds; whether the reissue of Packery Channel bonds was private placement; conversion to govemment bonds; the City's Bond Counsel; whether lawyer fees are based upon the size of the issuance; whether the Legal Department reviews bond counsel fees; the reason that financial advisors are not selected by a comparable bid process; risks associated with the bond issues; the size and location of the Coastal Securities firm; whether the bond counsel is paid a percentage of the bond issue; the comparison of bond counsel payments; whether there is any recourse on the bond issues; recycling asphalt; whether residential areas will be considered in future bond issues; the costs for roads and infrastructure in the 2004 Bond issue; whether there are ways to accelerate road improvements; the timeframe for the construction of the Oso Creek/Oso Bay Area Park Development; whether there is a design for the Oso Park Development; the location for the beginning construction of the Oso Park Development; whether there is grant funding for the Oso Creek trail system; the reason for not submitting grants for the trail system; and the use of outside the city limit contractors. Council Member Marez recommended that public comment on the Bond issue scheduled for August 12'^ begin at 5:00 p.m. Council Member McCutchon requested a list of the principals at Coastal Securities. There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 5:44 p.m. on July 15, 2008. -12- 2 Requested Council Action: 7/29/08 Alternate Date: 8/12/08 COUNCIL MEMORANDUM A. Resolution amending Resolution No. 027649, which approved projects to be funded through tax notes, to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount. B. Ordinance amending Ordinance No. 027708 which authorized issuance of tax notes in principal amount of $22,260,000, to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount; and declaring an emergency. C. Motion approving the purchase of a spotting tractor from Shoppa's Material Handling, LTD., Forth Worth, Texas in accordance with Bid Invitation No. B1- 0213 -08, based on most advantageous bid for a total amount of $86,350.97. The tractor will be used by Solid Waste Services and is an addition to the fleet. Funding is available in the Solid Waste 2008 Tax Notes Capital Improvement Project (CIP) Fund. ****************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** BACKGROUND: Purpose: On April 8, 2008, City Council approved Resolution No. 027649 which approved use of tax notes to fund certain projects and on May 20, 2008 City Council approved Ordinance No. 027708 which authorized the issuance of tax notes in principal amount of $22,260,000 for certain approved projects, as described on Schedule I (attached). The equipment prices were based on estimated amounts, with actual prices coming in at different amounts than estimated. It is requested to allow for the transfer of funding between the individual approved projects as needed, while remaining within the authorized principal amount in order that all the projects can be completed. The off road tractor will be used to spot, move, and stage transfer station trailers both empty and full at the Solid Waste Transfer Station. Space is limited which requires specialized equipment, with a tight turning radius. Bid invitations Issued: Three Bids Received: Three Award Basis: Most Advantageous Bid The Bid Invitation called for a transmission temperature gauge and high temperature alarm. This option is no longer available from the manufacturer and was not bid by any of the three companies that submitted bids. The recommended award is based on the lowest cost bid which meets all other specification requirements. Funding: II' Michael : arrera, Assistant Director of Financial Services Street 2008 Tax Notes (CIP) Fund 550710- 3364 - 00000 - 140600 —15— $86,350.97 Schedule 1 1. South Guth Ball Fields Relocation Project 2. Improvements to facilities within Bayfront Arts and Sciences Park, Such area to include American Bank Center, Museum of Science & History, Water Garden, Harbor Playhouse, and Art Museum of South Texas, such improvements to include: Life Cycle Replacement/Rehabilitation of Bayfront Arts and Sciences Park buildings and facilities including the American Bank Convention Center air handlers, chillers, cooling towers, controls, pumps, electrical, appurtenances and other Bayfront Park mechanical /electrical systems 3. Solid Waste equipment to include: a. two side loaders refuse trucks at $235,000 /each b. three brush trucks at $82,000 /each c. two open top trailers with push blade for unloading d. two truck tractors for hauling 45 foot trailers e. five 40 cubic yard roll -off trash and brush containers $5,000 /each f. one special truck tractor for moving and spotting large trailers at the transfer station 4. Street equipment to include: a. one asphalt relay truck for transporting hot asphalt to site b. two Gradall large truck mounted excavators at $275,000 /each c. one large self - propelled, steel wheeled vibratory soil compactor roller d. one special tank truck with computerized spray assembly for spraying hot asphalt on road surface 5. Street Maintenance /Overlays to include: Morgan- Virginia/Nineteenth Nueces Bay — Upriver /IH37 Riverhill — 624/Dead End Tarlton — Greenwood/Washington Upriver — Nueces Bay/Palm Wandering Creek — Leopard/Turkey Creek Wildcat — 624 /Teague Carancahua (Third) — Handcock/Morgan Louisiana Parkway (N) — Santa Fe /Alameda Louisiana Parkway (S) — Ocean/Santa Fe Louisiana Parkway (S) — Santa Fe /Staples Baldwin — Airport/Agnes Trojan — Greenwood/Crosstown Airline — Ocean/Alameda Commadores — PR22 /Aquarius Robert — Gaines /Alameda Flynn Parkway — Bonner — Philippine/Holly —16— $7,500,000 $3,500,000 $ 470,000 $ 246,000 $ 150,654 $ 258,022 $ 25,000 $ 80,000 $ 110,000 $ 550,000 $ 110,000 $ 161,000 $ 9,000,000 $22,160,676 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER -MARIA GARZA ITEM DESCRIPTION QTY. UNIT I. Off Road Spotting I Each Tractor in accordance with Specification No. 1177. Total PRICE SHEET 81 -0213 -08 OFF ROAD SPOTTING TRACTOR SHOPPA'S MATERIAL HANDLING, LTD FORTH WORTH, TEXAS Total Price ADOBE EQUIPMENT HOUSTON, TEXAS Total Price SUPERIOR TRAILER SALES COMPANY SUNNYVALE, TEXAS Total Price $86,350.97 $86 350 97 _17_ $86,624.00 $86,624.00 $86,790.00 $86,790.00 Page 1 of 2 RESOLUTION AMENDING RESOLUTION NO. 027649, WHICH APPROVED PROJECTS TO BE FUNDED THROUGH TAX NOTES, TO ALLOW FOR THE TRANSFER OF FUNDING BETWEEN THE INDIVIDUAL APPROVED PROJECTS AS NEEDED, WHILE REMAINING WITHIN THE AUTHORIZED PRINCIPAL AMOUNT. Whereas, on April 8, 2008, City Council approved Resolution No. 027649 which approved use of tax notes to fund certain projects; Whereas, the Resolution included a list of projects ( "Exhibit A" to Resolution 027649) with specific purchase amounts, based on best estimates; Whereas, some of the individual purchases were actually less than the estimated amount listed on original Exhibit A, and there are excess revenues; Whereas, some of the actual project amounts exceeded amounts listed on Exhibit A; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That Resolution No. 027649 which approved use of Tax Notes to fund certain projects, is amended to allow the City Manager to transfer funding as needed between individual approved projects listed on Exhibit A to Resolution 027649, while remaining within the authorized principal amount. INTRODUCED AND PASSED by the City Council of the City of Corpus Christi, Texas, on the day of July, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved: July 17, 2008 Lisa AguilarU Assistant City Attorney For City Attorney H:\LEG- DIR\Lisa\2008 ResolutionstAmend Resolution 027649.doc —18— Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -19- Page 1 of 1 AN ORDINANCE AMENDING ORDINANCE NO. 027708 WHICH AUTHORIZED ISSUANCE OF TAX NOTES IN PRINCIPAL AMOUNT OF $22,260,000, TO ALLOW FOR THE TRANSFER OF FUNDING BETWEEN THE INDIVIDUAL APPROVED PROJECTS AS NEEDED, WHILE REMAINING WITHIN THE AUTHORIZED PRINCIPAL AMOUNT; AND DECLARING AN EMERGENCY. Whereas, City Council approved Ordinance No. 027708 which authorized issuance of tax notes in principal amount of $22,260,000 for certain approved projects, as described on Schedule 1 to Ordinance 027708; Whereas, it is necessary to authorize transfer of funding between the approved projects described on Schedule I, while remaining within the authorized principal amount; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That Ordinance No. 027708 which authorized Issuance of Tax Notes in Principal Amount of $22,260,000, is amended to allow the City Manager to transfer funding as needed between individual approved projects listed on Schedule I to Ordinance 027708, while remaining within the authorized principal amount of $22,260,000. 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 __ day of , 2008. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: July 17, 2008 e,.L - A? Gam` -r{+ Lisa Aguilar,sistant City Attorney for City Attorney H: \LEG- DIR \Lisa12008 ORDINANCES\Amend Ordinance 027708.doc Henry Garrett Mayor —20— Corpus Christi, Texas Day of , 2008 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: 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, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel! Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -21- 3 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: July 29, 2008 AGENDA ITEM: Resolution approving a small business incentive agreement between the Corpus Christi Business and Job Development Corporation and ACCION Texas, Inc. for an interest buy - down program for small businesses and authorizing the City Manager, or designee, to execute a small business incentive project support agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the ACCION Texas small business incentive agreement. ISSUE: To assist in the job development and growth of small businesses in the community. PREVIOUS COUNCIL ACTION: August 28, 2007 council approved a resolution, in the amount of $200,000 for an interest buy -down program. On March 11, 2008, council approved a resolution in the amount of $50,000 for a pilot initiative to provide interest buy - downs for existing small businesses. CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant business incentives to ACCION Texas, Inc., in the amount of $350,000 for an interest buy -down program to assist small businesses in Corpus Christi beginning August 1, 2008 through July 31, 2009. eal—% '1 Irma Caballero Director of Economic Development —25— BACKGROUND INFORMATION Summary ACCION Texas, Inc., has been administering a micro - lending program in Corpus Christi for more than three years, and has disbursed almost $2.3 million and over 170 loans. This was accomplished with the help of the City of Corpus Christi buying down the interest rate of loans to a 5.5% interest rate for struggling small business owners that did not qualify for bank loans and were willing to hire an additional employee. Many of these small businesses were start-ups and had little to no collateral. When the City of Corpus Christi Interest Buy -Down Program first began in 2004, the initial disbursement of loans was relatively slow; in the last quarter of 2004 and all of 2005 combined, ACCION Texas made only 14 buy -down loans. However, through the implementation of an effective marketing campaign using TV and radio advertisements, ACCION Texas has greatly increased the amount of loans disbursed through this program; in 2007, ACCION disbursed 27 low- interest loans and in the first six months of 2008, ACCION has disbursed 23 loans. ACCION Texas expanded this successful program by obtaining an additional $50,000 in March 2008 for an interest buy -down program designated for existing businesses interested in expanding. The investment of $350,000 from the City of Corpus Christi would be leveraged with ACCION Texas funds. The program for FY 08 -09 will utilize $200,000 for start-up and existing businesses that have little or no access to traditional credit and $150,000 will be used for existing businesses that wish to expand. Borrowers will continue to be evaluated for their potential to create new permanent jobs as a result of access to reduced -cost capital. ACCION Texas will contribute $1.75 million in loan capital to this program. These loans are projected to create 110 new jobs and generate over $1 million in new revenues in the City of Corpus Christi. Year # of Loans Loan Amount Disbursed 2004 (after Sept. 1) 4 $83,446 2005 10 $183,660 2006 14 $296,780 2007 27 $593,439 2008 26 (as of June 19) $547,050 Pilot Program for Ex . g (March andin Businesses — Year - -, # of Loans __ - -, Loan Amount Disbursed 2008 2 $60,615 —26— Page 1 of 3 A RESOLUTION APPROVING A SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCION TEXAS, INC. FOR AN INTEREST BUY -DOWN PROGRAM FOR SMALL BUSINESSES AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A SMALL BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE ACCION TEXAS SMALL BUSINESS INCENTIVE AGREEMENT WHEREAS, the Corpus Christi Business and Job Development Corporation ( "4A Board ") has budgeted funds to assist small business in Corpus Christi, Texas. WHEREAS, in 2007, the 4A Board requested proposals and determined that the proposal from ACCI6N Texas Inc. (ACCI6N Texas), best provided assistance for small business support; WHEREAS, on August 28, 2007, the City Council approved a agreement between the 4A Board and ACCI6N TEXAS to provide an interest buy -down program for small business support; WHEREAS, under the terms of the original agreement between the 4A Board and ACCION TEXAS, the agreement could be extended for up to two additional one year terms, contingent upon annual appropriation of funds; WHEREAS, on March 11, 2008, the City Council approved an additional agreement between the 4A Board and ACCI6N TEXAS to provide an interest buy -down program for small business support that expanded upon and modified some of the terms in the prior agreement; WHEREAS, the latest agreement did not provide for the extension of the newest agreement; WHEREAS, ACCION Texas has requested an extension of the August 2007 agreement, with the incorporation of terms from the agreement March 2008 agreement; WHEREAS, the 4A Board adopted a resolution that appropriated funds for and authorized a one year extension of the agreement on June 16, 2008; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the first one year extension of that agreement; and WHEREAS, there is a need for a small business incentive project support agreement between the City of Corpus Christi ( "City ") and the 4A Board for the implementation and —27— Page 2 of 3 administration of the business incentive agreement with ACCI6N TEXAS for an interest buy -down program to assist small businesses in Corpus Christi. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the small business incentive agreement for an interest buy -down program for small businesses between the 4A Board and ACCI6N TEXAS, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project support agreement between the City and 4A Board for the implementation and administration of the small business incentive agreement with ACCI6N TEXAS for an interest buy -down program to assist small businesses in Corpus Christi, which is attached to this resolution as Exhibit B. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor j „Ay 2-1, xOs APPROVED as to form: July 11, 2008 4.-/ U R. Jay Reinfr First Assistant City Attorney For the City Attorney —28- Res -Aamt SmallBus- 4ABd- ACCIONaooroval- 07102008 2 em Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -29- Page 3 of 3 SMALL BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCI6N TEXAS, INC. FOR AN INTEREST BUY -DOWN PROGRAM FOR SMALL BUSINESSES This Small Businesses Incentive Agreement for an Interest Buy -Down Program for Small Businesses ( "Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and ACCI6N Texas, Inc., a Texas nonprofit corporation ( "ACCI6N Texas "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ( "City") passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1 /8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ( "Board "), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the corporation; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007; WHEREAS, ACCION Texas is a Texas nonprofit corporation whose principal mission is to provide loans to small business owners lacking access to commercial credit; WHEREAS, ACCI6N Texas anticipates, over the next twelve months, providing interest buy -down to 5.5% for approximately 69 loans with an average value of $25,000 to low and moderate income micro and small business owners in Corpus Christi to generate 110 new permanent full -time jobs; ACCION Texas Agreement 072108 la.doc Page 1 of 11 —30— WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to ACCION Texas, through this contract with ACCION Texas, to be used by Accion Texas to buy -down the interest on commercial loans to 5.5% interest for small businesses and which will result in creation of new full -time permanent jobs in the city of Corpus Christi. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and ACCION Texas agree as follows: 1. Effective Date. The effective date of this Agreement ( "Effective Date ") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for one year from August 1, 2008, through July 31, 2009. This agreement may be extended at the option of the Corporation for up to two additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. 3. Interest Buy Down Program. a. In consideration for creation and maintenance of new jobs as provided in this Agreement, the Corporation agrees to pay ACCION Texas up to $350,000 for the Interest Buy -Down Program as follows: i. ACCION Texas must first receive a request for a loan from a small business that has been in existence for not more than five (5) years located in Corpus Christi, or a business locating in Corpus Christi ('Business "). ii. ACCION Texas shall review the request for a loan from the Business. iii. Upon ACCION Texas approval of a loan, and prior to the closing of the loan, ACCION Texas shall submit Attachment "A" to the Corporation requesting funds to buy down the interest rate from the interest rate allowable per the underwriting criteria to 5.5%. The Corporation authorizes an interest buy -down up to 7% of the interest rate to finance the loan. Payment by Corporation shall not exceed $17,500 per loan and shall be calculated using the following formula: (Loan amount x interest rate to buy down to 5.5 %) / 12 = N N x number of payments= interest buy down reimbursement to ACCION Texas for business loan. (The number of monthly payments shall not exceed sixty (60).) Example: ($10,000 x 7 %) / 12 = 55.33 55.33 x 36 = $2,100 = amount to be reimbursed to ACCION Texas for business loan. ACCION Texas Agreement 072108 la.doc Page 2 of 11 —31— iv. The Corporation shall provide a response to approve or deny the reimbursement for the Interest Buy Down Program funds to ACCI6N Texas within 2 business days of receipt of Attachment "A." The Corporation shall reimburse funds within 30 days after evidence of closing the loan is submitted. v. The total funds available on an annual basis under the Interest Buy - Down Program under this agreement is $350,000. b. The loans assisted with the program must be within the range of $10,000 to $50,000. c. This program must result in the creation of one permanent full -time job per every loan assisted with the Interest Buy Down Program. ACCI6N Texas shall ensure that the loan will result in the creation of one new full -time permanent job in the city of Corpus Christi. d. Businesses assisted through this program must be: i. A start-up or existing small business that is unable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan through a bank or credit union, in which case ACCION Texas can loan the remaining amount with the buy -down interest rate program in conjunction with the bank \credit union. ii. An existing small business that needs assistance to expand. iii. Any business assisted under the provisions of paragraphs i or ii of this subsection, must be: A. Located in or locating in Corpus Christi city limits. B. A business or home -based business in existence for not more than five (5) years located in the Corpus Christi city limits. C. Current on payment of all sales taxes. D. Current on payment of all ad valorem taxes in the City of Corpus Christi. e. The following projects are ineligible for this program: i. Refinancing of existing loans or debt ii. Businesses located outside the Corpus Christi city limits iii. Home -based businesses located outside the Corpus Christi city limits iv. Loans to existing businesses which are not planning on expanding Page 3 of 11 ACCION Texas Agreement 072108 la.doe — 3 2 v. Business retention. f. ACCI6N Texas may use up to $200,000 to assist start-up and existing small businesses that have little or no access to traditional credit, and up to $150,000 to existing small businesses that wish to expand. g. ACCI6N Texas shall provide the Corporation with quarterly reports as provided in Attachment "B" to identify the loans made, name and address of the business receiving the loan, jobs created under the Interest Buy -Down Program, and other reports as requested by the Corporation. h. ACCI6N Texas shall provide funds for operations and loan capital to implement and sustain the program. i. ACCI6N Texas shall develop loan underwriting criteria and payment terms and conditions for its loan program and provide to the Corporation. j. At the termination of this agreement and after repayment or other conclusion of all loans assisted by Interest Buy Down Program, ACCI6N Texas will return to the Corporation any unexpended funds remaining from the Loan Loss Reserve Program. 4. Job Creation Qualification. a. In order to count as a created job under this Agreement, the job must pay wages as required by Section 38(b) of the Development Corporation Act of 1979, as amended, which is the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. A full -time permanent job is one that provides at least 2,080 hours annually. c. ACCI6N Texas agrees to confirm and document to the Corporation that each job created as a result of funding provided by this Agreement is maintained throughout the term of the loan to the Business. d. ACCI6N Texas agrees to provide Corporation with a sworn certificate by authorized representative of each shall business assisted under this Agreement certifying the number of full -time permanent employees employed by the small business. e. ACCI6N Texas shall ensure that the Corporation is allowed reasonable access to personnel records of the small businesses assisted under this Agreement. ACCION Texas Agreement 072108 la.doc Page 4 of 11 —33— 5. Buy Local Provision. a. ACCI6N Texas agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50- mile radius of Nueces County. 6. Local Offices. Two staff persons of ACCI6N Texas offices shall be located in Corporation designated offices or a mutually agreeable location. 7. Representation on ACCI6N Texas governing board. ACCI6N Texas agrees to appoint a person designated by the Corporation as a member of ACCION Texas governing board. 8. Warranties. ACCI6N Texas warrants and represents to Corporation the following: a. ACCI6N Texas is a corporation duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carry on its business as presently conducted in Corpus Christi, Texas. b. ACCION Texas has the authority to enter into and perform, and will perform, the terms of this Agreement. c. ACCI6N Texas has timely filed and will timely file all local, State, and Federal tax reports and returns required by laws to be filed and all Texas, assessments, fees, and other governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. ACCI6N Texas has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vemon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. e. If an audit determines that the funds were not used for authorized purposes, Acci6n Texas agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. f. The parties executing this Agreement on behalf of ACCI6N Texas are duly authorized to execute this Agreement on behalf of ACCION Texas. ACCION Texas Agreement 072108 la.doc Page 5 of 11 —34— 9. Compliance with Laws. ACCION Texas shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, County and City governments. 10. Non - Discrimination. ACCI6N Texas covenants and agrees that ACCI6N Texas will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 11. Force Majeure. If the Corporation or ACCI6N Texas are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or Accion Texas are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 12. Assignment. ACCI6N Texas may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 13. Indemnity. ACCION Texas covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents (` Indemnitees") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with ACCION Texas activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. ACCION Texas must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to lndemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. ACCION Texas Agreement 072108 la.doc Page 6 of 11 —35-- 14. Events of Default. The following events constitute a default of this Agreement: a. Failure of ACCION Texas to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Agreement. b. The Corporation or City determines that any representation or warranty on behalf of ACCION Texas contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; c. Any judgment is assessed against ACCION Texas or any attachment or other levy against the property of ACCION Texas with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. ACCION Texas makes an assignment for the benefit of creditors. e. ACCI6N Texas files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by ACCION Texas become delinquent, and ACCION Texas fails to timely and properly follow the legal procedures for protest or contest. g. ACCION Texas changes the general character of business as conducted of the date this Agreement is approved by the Corporation. 15. Notice of Default. Should the Corporation or City determine that ACCION Texas is in default according to the terms of this Agreement, the Corporation or City shall notify ACCI6N Texas in writing of the event of default and provide 60 days from the date of the notice ( "Cure Period ") for ACCION Texas to cure the event of default. 16. Results of Uncured Default. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of ACCION Texas, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. a. ACCION Texas shall immediately repay all funds paid by Corporation under this Agreement. b. ACCION Texas shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation. c. The Corporation shall have no further obligations to ACCION Texas under this Agreement. ACCION Texas Agreement 072108 la.doc Page 7 of 11 -36- d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 17. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of ACCI6N Texas' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time ACCI6N Texas is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 18. ACCI6N Texas specifically agrees that Corporation shall only be liable to ACCI6N Texas for the actual amount of the money grants to be conveyed to ACCI6N Texas , and shall not be liable to ACCI6N Texas for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this agreement, being August 1, 2008, through July 31, 2009. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from ACCI6N Texas to be accompanied by all necessary supporting documentation. 19. Notices. ACCION Texas Agreement 07210B la.doc Page 8 of 11 -37- a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: ACCI6N Texas: ACCION Texas Attn.: Janie Barrera 2014 Hackberry San Antonio, Texas 78210 Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.:City Manager P.O. Box 9277 Corpus Christi, Texas 78469 -9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 20. Incorporation of other documents. The Corpus Christi Business and Job Development Corporation Guidelines and Criteria for Granting Business Incentives ( "Corporation Guidelines "), as amended, are incorporated into this Agreement. 21. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 22. Relationship of Parties. In performing this Agreement, both the Corporation and ACCI6N Texas will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint- venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 23. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 24. Severability. ACCION Texas Agreement 072108 la.doc Page 9 of 11 —38— a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 25. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 26. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and ACCION Texas. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 27. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to the Loan Loss Reserve Program and the Interest Buy Down Program shall survive the termination of this agreement. Corpus Christi Business & Job Development Corporation By: Date: Attest: Eloy Salazar Chairperson By: Armando Chapa Assistant Secretary ACCION Texas Agreement 072108 la.doc Page 10 of 11 -39- ACCI6N Texas, Inc. By: Janie Barrera President and Chief Executive Officer Date: THE STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2008, by Janie Barrera, President and Chief Executive Officer for ACCI6N Texas, Inc., a Texas non - profit corporation, on behalf of the corporation. Notary Public State of Texas ACCION Texas Agreement 072108 la.doc Page 11 of 11 -40- SMALL BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT This Small Business Incentives Project Support Agreement ( "Project Support Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and the City of Corpus Christi, Texas ( "City"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vemon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors; WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ( "Board "), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vemon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007; WHEREAS, ACCI6N Texas has submitted a proposal to the Corporation for $350,000 for an interest buy -down program for small businesses in Corpus Christi; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund the ACCION Texas interest buy -down program; and WHEREAS, the Corporation and ACCI6N Texas have executed a small business incentive project agreement for an interest buy -down program for small businesses. In consideration of the covenants, promises, and conditions stated in this Project Support Agreement, the Corporation and the City agree as follows: 1. Project Support Agreement to Implement Business Incentives Agreement. This Project Support Agreement between the City and the Corporation is executed to —gage 1 of 3 implement the Small Business Incentive Agreement for an Interest Buy -Down Program for Small Businesses between the Corporation and ACCION Texas ( "Small Business Incentive Agreement "). 2. Term. The term of this Project Support Agreement runs concurrently with the term of the Small Business Incentive Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Small Business Incentive Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Support Agreement is the latest date that either party executes this Agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Support Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Support Agreement or the application of this Project Support Agreement to any person or circumstance is to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Support Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Support Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Support Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Support Agreement, then the remainder of this Project Support Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Support Agreement automatically. — 4age2of3 ACCI(]N Project Simone Anremmant dd_ritu n7 n7nna 8. Captions. The captions in this Project Support Agreement are for convenience only and are not a part of this Project Support Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Support Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation George K. Noe Eloy Salazar City Manager Chairperson Date: Date: Attest Armando Chapa City Secretary Approved as to Legal Form this 11`" day of July, 2008. R. Jay Reining First Assistant City Attorney for City Attomey - 43Page 3 of 3 4 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: July 29, 2008 AGENDA ITEM: Resolution approving an agreement to grant business incentives between the Corpus Christi Business and Job Development Corporation (4A Board) and SCORE Chapter 221, which grants $50,000 in business incentives for the operation of a program to assist small and start-up businesses in Corpus Christi and authorizing the City Manager or his designee to execute a business incentives project agreement with the Corpus Christi Business and Job Development Corporation regarding implementation and administration of the agreement to grant business incentives. ISSUE: To assist in the job development and growth of small businesses in the community. PREVIOUS COUNCIL ACTION: Council authorized a 7 month contract in the amount of $29,167 on December 11, 2007. CONCLUSION AND RECOMMENDATION: Staff recommends approval to grant business incentives to SCORE in the amount of $50,000 for the continuation of assistance to small and start-up businesses beginning August 1, 2008 through July 31, 2009. �� l'c.a..lfha Irma Caballero Director of Economic Development —47— BACKGROUND INFORMATION Backqround On December 11, 2007, Council approved an agreement in the amount of $29,167 with SCORE Chapter 221, to provide assistance to small businesses and persons desiring to begin and operate a small business in Corpus Christi. The services provided by SCORE include mentoring clients, conducting workshops, advising clients as to business plans, pro formas, form of business entity, financial implications, and all other aspects of small business operations. SCORE retained an executive assistant/coordinator to assist the SCORE volunteers in administering the assistance program and engaged in a limited advertising campaign to publicize the assistance program. On June 16, 2008, the Corpus Christi Business and Job Development Corporation (4A Board) approved a one (1) year agreement with SCORE in the amount of $50,000 to provide assistance to small businesses in Corpus Christi. As of SCORE's quarterly report on June 11, 2008, they provided 1,241 hours of general and technical services to small businesses through volunteer counselors. The following is a breakdown of services provided by SCORE during the first five months of 2008: Face to Face cases 75 Workshop Attendees 53 E -Mail On -Line cases 268 Total Cases 396 Service Corps of Retired Executives (SCORE)- Amount requested $50,000 SERVICES SCORE seeks funding to continue to enhance and expand its current business assistance services to small business owners. Services include: Face to Face meetings, business related workshops, providing small business related written materials and text manuals to clients, business counseling via email, telephone conferencing and office trips, publication of articles of interest and knowledge to small business and referral services. PROGRAM OUTCOME SCORE seeks to continue funding an executive assistant/coordinator position to enable SCORE to better monitor and serve its clients. This position will help to eliminate duplication and permit effective handling of cases relating to small businesses. In addition, the position will enhance follow up to clients, scheduling of work shops, conferences and other presentations, and telephone and computer communication. —48-- Marketing funds will be used for advertising activities to acquaint many additional small business prospects with SCORE services. SCORE was granted a 7 month agreement, January 1, 2008 — July 31, 2008, through the Corpus Christi Business and Job Development Corporation (4A Board) in the amount of $29,167. To date SCORE volunteers have provided over 1300 hours of general and technical services to small businesses and individuals. They have a target goal to provide 135 hours per month and through the grant received they have been able to market their program and increase their clientele. It has been the accumulated experience of SCORE that as successful small businesses are established, serviced, and advised, such businesses employ personnel to assist in the expanding opportunities of the company. Additionally, services are purchased from other businesses as required. In turn, this creates more jobs for the Corpus Christi community. PERFORMANCE REQUIREMENTS SCORE will report number of volunteer hours, number of clients served and number ofjobs created to the Economic Development Office on a quarterly basis. This will be accomplished by means of establishing the executive assistant/coordinator position. BUDGET SCORE is requesting $50,000 from the City of Corpus Christi to be used to contract an executive assistant/coordinator position for a twelve (12) month period beginning August 1, 2008 through July 31, 2009, and for advertising of SCORE program services. Line Item Proposed Budget In -Kind Staff Costs $25,000 Marketing $25,000 In -Kind contributions $162,000 Total $50,000 $162,000 Budget Notes: (1) $25,000 will be used to contract with an executive assistant for 12 months (2) $25,000 will be used to advertise SCORE services for 12 months (3) Value of services to small businesses (1620 hours) is estimated at the minimum of $100 per hour considering the background and experience of the volunteer counselors and would cost more if purchased on the open market. The monetary value of services for twelve (12) months based on the last fiscal year is $162,000. —49— Page 1 of 3 RESOLUTION APPROVING AN AGREEMENT TO GRANT BUSINESS INCENTIVES BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION (4A BOARD) AND SCORE CHAPTER 221, WHICH GRANTS $50,000 IN BUSINESS INCENTIVES FOR THE OPERATION OF A PROGRAM TO ASSIST SMALL AND START -UP BUSINESSES IN CORPUS CHRISTI AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A BUSINESS INCENTIVES PROJECT AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION AND ADMINISTRATION OF THE AGREEMENT TO GRANT BUSINESS INCENTIVES WHEREAS, there is a need for an agreement to grant business incentives for small business assistance between the Corpus Christi Business and Job Development Corporation and SCORE Chapter 221 (SCORE), which grants $50,000 in business incentives to SCORE for a program to assist small and start- up businesses in Corpus Christi; and WHEREAS, there is a need for a business incentives project agreement between the City of Corpus Christi and the Corpus Christi Business and Job Development Corporation for the implementation and administration of the business incentive agreement with SCORE Chapter 221 (SCORE) for a program to assist small and start-up businesses in Corpus Christi. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the agreement to grant business incentives for small business assistance between the Corpus Christi Business and Job Development Corporation (4A Board) and SCORE Chapter 221, which is attached to this resolution as Exhibit A, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute the business incentives project agreement between the City of Corpus Christi and the Corpus Christi Business and Job Development Corporation for the implementation and administration of the agreement to grant business incentives for small business assistance with SCORE Chapter 221 for a program to assist small and start-up businesses in Corpus Christi, which is attached to this resolution as Exhibit B. —50— unoee niomc...u..nnennunIur newel nDKAFMTIAA Rnard\RCfRF \Rne_RCf1RF Inrenliune fl]079f10R dry Page 2 of 3 ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary au,tvi II Paz APPROVED as to form: Attyt,ZOQS „,✓ R. Jay Reini First Assistant City Attorney For the City Attorney -51- Henry Garrett Mayor unocc nIDI =...a.a,MMernninreir nfVF1 nPMFNTTAA RnaM\CCfRF R SCCRF Incentives 07079008. Am Corpus Christi, Texas of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon —52— AGREEMENT TO GRANT BUSINESS INCENTIVES TO SCORE CHAPTER 221 FOR SMALL BUSINESS ASSISTANCE This Agreement to Grant Business Incentives for Small Business Assistance ( "Agreement ") is entered into by and between the Corpus Christi Business and Job Development Corporatior ( "Corporation "), a Texas non - profit corporation, organized under V.A.C.S., Art. 5190.6, Sec. 4A, with mailing address of 1201 Leopard Street, Corpus Christi, Texas, 78401, and SCORE Chapter 221, ( "SCORE "), a nonprofit association, with principal place of business at 3649 Leopard Street, Suite 411, Corpus Christi, Texas 78408. I. BACKGROUND 1.1. Purpose of Agreement. Corporation is a tax - supported non - profit corporation, whose primary income is from sales tax collected within the City of Corpus Christi and dedicated exclusively to economic development. This sales tax supporting Corporation is authorized as a local option under Texas Revised Civil Statutes, Art. 5190.6, Sec. 4A. Corporation exists for the primary purpose of developing, stabilizing, diversifying, and expanding the Corpus Christi economy through the retention, expansion, and recruitment of employment opportunities in order to benefit the citizens of Corpus Christi and the surrounding areas. 1.2. Project. The project and performance requirement to be implemented by means of this agreement are generally described as follows: 1. SCORE will provid assistance to small businesses and persons and entities desiring to begin and operate a small business in Corpus Christi by mentoring clients; conducting workshops; and advising clients as to business plans, pro formas, forms of business entity, financial implications, and all other aspects of small business operations. 2. SCORE will retain an executive assistant/coordinator to assist the SCORE volunteers in administering the assistance program. SCORE will engage in a limited advertising campaign to publicize the assistance program. 3. The performance requirements shall be continuously maintained during the entire term of this agreement. NOW, THEREFORE, in consideration of the premises and of the mutual covenants, warranties, and agreements of the parties, it is agreed as follows: II. ECONOMIC BENEFITS AND INCENTIVES AND PERFORMANCE REQUIREMENTS 2.1. BY THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION 1. Money Grant: 1. Corporation will reimburse SCORE by grant for all direct expenses related to the project. The total reimbursements may not exceed Fifty Thousand Dollars Page 14 of 14 SCORE 4A Small Business Development Agreement 07222008 la.�d- ($50,000.00), subject to the performance requirements of SCORE and the conditions precedent set forth in Schedule A. 2. Failure by Corporation to timely reimburse SCORE is an act of default by Corporation giving SCORE as its sole remedy the right to reimbursement of the contracted amount, which is further limited to the terms and conditions contained in Article VII, paragraph 7.1, of this agreement. SCHEDULE A SCORE's CONDITIONS PRECEDENT AND PERFORMANCE REQUIREMENTS SCORE's TIME OF PERFORMANCE CORPORATION's PERFORMANCE REQUIREMENTS 1. Employment of a contract executive assistant/ coordinator, with an average annual salary of $25,000, to assist the SCORE volunteers to provide assistance to small businesses and persons and entities desiring to begin and operate a small business in Corpus Christi. 2. SCORE volunteers to provide assistance to small businesses and persons and entities desiring to begin and operate a small business in Corpus Christi by: a. Mentoring clients. b. Conducting workshops. c. Advising clients as to business plans, pro formas, form of business entity, financial implications, and all other aspects of small business operations. August1, 2008 through July 31, 2009 Reimbursement of SCORE expenses up to a total of $50,000, payable within 30 days of invoicing for expenses under this agreement. d. Conducting a limited advertising campaign to publicize the assistance program to small businesses. Page 2 of 14 SCORE 4A Small Business Development Agreement 0722200BTele% 2.2. BY SCORE 1. Investment — Facility: SCORE is not required to make a capital investment, however SCORE shall perform the performance requirements as set forth in Schedule B. SCHEDULE B SCORE'S PERFORMANCE REQUIREMENTS SCORE's TIME OF PERFORMANCE Providing 1620 hours of general and technical services to small businesses through volunteer counselors. Beginning August 1, 2008 and continuing until July 31, 2009. 2. Employment: SCORE shall comply with the employment requirements set forth in Schedule C. SCHEDULE C SCORE's PERFORMANCE REQUIREMENTS SCORE's TIME OF PERFORMANCE Create and maintain not less than one contract executive assistant/coordinator position with an average annual salary of $25,000. January 15, 2009 3. Failure by SCORE to timely and fully comply and to continue to comply with any performance requirements of this paragraph is an act of default. III. REPORTING AND MONITORING 3.1. Reports and Monitoring: SCORE agrees to the following reporting and monitoring provisions, and failure to fully and timely comply with any one requirement is an act of default. 1. SCORE shall provide an annual report certifying the status of compliance through the life of the agreement. In addition to the annual report, SCORE shall submit a quarterly report to document the jobs created. The quarterly report may be in the form of quarterly IRS 941 returns, SCORE employer Quarterly Reports, or employee rosters that show the hours worked and the positions filled, and other reports as may reasonably be required. Page 3 of 14 SCORE 4A Small Business Development Agreement 07222008 I U 2. SCORE shall provide quarterly reports on its performance requirements. The reports must document: 1. Number of face to face consultations between SCORE volunteers and small business owners or prospective owners. 2. Number of workshops with description of workshop and number of attendees. 3. Number of small business owners or prospective owners who were provided counseling by email or on -line services. 3. SCORE, during normal working hours, at its Corpus Christi, Texas, facility, shall allow Corporation and its designee, the City's Economic Development Department ( "Department "), reasonable access to SCORE's employment records and books, to verify employment and all other relevant records related to each of the other economic development considerations and incentives, as stated in this agreement, but the confidentiality of records and information shall be maintained by Corporation and Department, unless the records and information shall be required by a court order, a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney General. IV. COVENANTS, WARRANTIES, OBLIGATIONS AND DUTIES 4.1. SCORE makes the following covenants and warranties to Corporation, and agrees to timely and fully perform the following obligations and duties. Any false or substantially misleading statement contained in this agreement or SCORE's request for funding, or any failure to timely and fully perform the performance requirements in this agreement is an act of default by SCORE. Failure to comply with any one covenant or warranty is an act of default by SCORE. 1. SCORE is duly organized, validly existing, and in good standing and authorized to do business in the State of Texas, under the laws of the State of Texas, has all power and authority to carry on its business as presently conducted in Corpus Christi, Texas. 2. The execution of this agreement has been duly authorized by SCORE's board of directors; the officer signing this agreement is an officer of the organization, empowered to execute the agreement and bind the organization; the authorization, signing, and binding effect is not in contravention of any law, rule, regulation, or the provisions of SCORE's by -laws, or of any agreement or instrument to which SCORE is a party or by which it may be bound; the authority to be evidenced by an organizational resolution, attached to this agreement at the time of execution. 3. SCORE has the authority to enter into and perform, and will perform, the terms of this Agreement. 4. SCORE has timely filed and will timely file all local, State, and Federal tax reports and returns required by law to be filed and all taxes, assessments, fees, and other Page 4 of 14 SCORE 4A Small Business Development Agreement 07222008 U% governmental charges, including applicable ad valorem and employment taxes, have been timely paid, and will be timely paid, during the term of this Agreement. 5. No litigation or governmental proceeding is pending or, to the knowledge of SCORE or SCORE's officers, threatened against or affecting SCORE that may result in any material adverse change in SCORE's business, properties, or operations. No consent, approval or authorization of or registration or declaration within any governmental authority is required in connection with the execution of this agreement or the transactions contemplated hereby. 5. No certificate, statement, or information provided by SCORE to Corporation or the City of Corpus Christi in connection with any transaction contemplated by this agreement, contains any untrue statements or fails to state any fact necessary to keep the statements contained in the statement from being misleading. 6. To the best of its knowledge, SCORE has acquired and maintained all necessary rights, licenses, permits, and authority to carry on its business operations in Corpus Christi, Texas, and will continue to use its best efforts to maintain all necessary rights, licenses, permits, and authority. 7. The funds granted in this agreement must be utilized solely for the purpose: 1. Offsetting the cost of creating and maintaining the one (1) employment position at SCORE's Corpus Christi facility. 2. Assisting small businesses and persons and entities desiring to begin and operate a small business in Corpus Christi by: 1. Mentoring clients. 2. Conducting workshops. 3. Advising clients as to business plans, pro formas, form of business entity, financial implications, and all other aspects of small business operations. 3. Conducting a limited advertising campaign to publicize the assistance program to small businesses. 8. SCORE shall continue its full -time business activities on its property in Corpus Christi, Texas, including maintaining its employment and investment requirements at all times throughout the term of this agreement. 9. SCORE shall complete the project required by this Agreement, and shall provide and staff the required employment positions, investment, and other economic development considerations described in this Agreement. 10. SCORE shall timely and fully comply with all of the terms and conditions of this Agreement. Page 5 of 14 SCORE 4A Small Business Development Agreement 07222008 TAU- 11. SCORE shall notify Corporation in writing of substantial changes in management within seven (7) days. Substantial changes mean changes in Chairman of the Board, President, C.E.O., or area management. 12. SCORE has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. 13. In the event it is determined by Corporation or City of Corpus Christi that funds provided under this Agreement were not used in accordance with State law, then SCORE agrees to repay the funds to the Corporation within 30 days of written notice requesting reimbursement. 14. If an audit determines that the funds were not used for authorized purposes, SCORE agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement. 15. There are no bankruptcy proceedings currently pending concerning SCORE, nor are any proceedings contemplated by SCORE, as of the date of execution of this Agreement by SCORE. 16. SCORE will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 17. SCORE agrees to provide information, reports, or statements respecting its business operations and financial condition as Corporation may reasonably request from time to time. 4.2. All representations, warranties, covenants and agreements of the parties, as well as any rights and benefits of the parties pertaining to the transaction contemplated hereby, shall survive the original execution date of this agreement. V. SUSPENSIONS/TERMINATIONS 5.1. Corporation, under the following circumstances, and at its sole discretion, may suspend its obligations under this agreement or terminate this agreement and recapture from SCORE any of the money grants or consideration paid by Corporation to SCORE, without liability to SCORE, upon any one of the following events, which are an act of default. 1. The appointment of a receiver of SCORE, or of all or any substantial part of its property, and the failure of the receiver to be discharged within sixty (60) days thereafter. 2. The adjudication of SCORE as bankrupt. Page 6 of 14 SCORE 4A Small Business Development Agreement 07222008 Mils8 — 3. The filing by SCORE of a petition or an answer seeking bankruptcy, receivership, reorganization, or admitting the material allegations of a petition filed against it in any bankruptcy or reorganization proceeding. VI. DEFAULT 6.1. Events of Default. Should SCORE fail to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions or warranties of this agreement the failure shall be an act of default by SCORE and, if not fully and completely cured and corrected within sixty (60) days after written notice to do so, Corporation may terminate this agreement and pursue all legal remedies as provided by law, provided however that SCORE's liability under this agreement shall be limited to the recapture from SCORE any of the money grants or consideration paid by Corporation to SCORE under this agreement. Corporation shall not be liable to SCORE for any alleged consequential damages. Additionally, the following events shall constitute a default of this Agreement: 1. The Corporation or City determines that any representation or warranty on behalf of SCORE contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was incorrect or misleading in any material respect when made; 2. Any judgment is assessed against SCORE or any attachment or other levy against the property of SCORE with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. 3. If taxes owed by SCORE become delinquent, and SCORE fails to timely and properly follow the legal procedures for protest or contest. 4. SCORE changes the general character of business as conducted of the date this Agreement is approved by the Corporation. 6.2. In the event of unforeseeable third party delays in the performance of this Agreement or force majeure and upon a reasonable showing by SCORE that it has immediately and in good faith commenced and is diligently and continuously pursuing the correction, removal, or abatement of delays by using its best efforts, Corporation may consent to and excuse delays, which consent and excuse shall not be unreasonably withheld. Failure by SCORE to use its best efforts as required in this paragraph shall be an act of default. Force majeure means severe weather, such as tornadoes or flooding, named storms or hurricanes, wars, riots, and the unavailability of necessary and essential equipment and supplies from all sources. 6.3. Any delay for any amount of time by Corporation in providing notice of default to SCORE shall in no event be deemed or constitute a waiver of the default by Corporation of its rights and remedies available under this agreement, or in law or equity. 6.4. Any waiver granted by Corporation to SCORE of any covenant or condition, the breach of any covenant or condition of this Agreement, or of an act of default shall not be deemed or constitute a waiver of any other existing or future breach of a covenant or condition, or act of default by SCORE or of a subsequent breach of the same covenantor condition or act of default of the same act or event by SCORE. Page 7 of 14 SCORE 4A Small Business Development Agreement 07222008 laafz9— 6.5. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. 6.6. Any waiver or indulgence of SCORE's default may not be considered an estoppel against the Corporation. 6.7. Results of Uncured Default. After exhausting good faith attempts to address any default during the Cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of SCORE, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period: 1. SCORE shall immediately repay all funds paid by Corporation under this Agreement. 2. SCORE shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation. 3. The Corporation shall have no further obligations to SCORE under this Agreement. 4. Neither the City nor the Corporation may be held liable for any consequential damages. 5. The Corporation may pursue all remedies available under law. 6.8. SCORE shall give Corporation written notice of any act of default by Corporation, and Corporation shall have thirty (30) days after receipt of the notice to cure the default. Failure by Corporation to timely and fully cure the act of default shall permit SCORE to pursue its legal remedies as provided in this agreement. VII. CORPORATION'S LIABILITY LIMITATIONS 7.1. Payments: SCORE specifically agrees that Corporation shall only be liable to SCORE for the actual amount of the money grants to be conveyed to SCORE, and shall not be liable to SCORE for any other actual or consequential damages, direct or indirect, interest, attorney fees, or costs of court for any act of default by Corporation under the terms of this agreement. It is further specifically agreed that Corporation shall only be required to pay the grant amounts solely out of its sales tax revenue currently collected, allocated, and budgeted and to be allocated, budgeted and collected for SCORE during the term of this agreement. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this agreement, being August 1, 2008, through July 31, 2009. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to SCORE Page 8 of 14 SCORE 4A Small Business Development Agreement 07222008 Iu CC bQ— for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made to SCORE shall also require a written request from SCORE to be accompanied by all necessary supporting documentation. Corporation shall have thirty (30) days to make payment after receipt of the payment request. The payment request should be directed to the address provided for Corporation below. VIII. DEFINITIONS As used in this agreement, the following words or phrases shall have the following meanings: 8.1. City of Corpus Christi or City means the governing municipal corporation and the area that is within the city limits of the City of Corpus Christi, Texas. 8.2. Compliance means timely, fully, and completely performing or meeting each and every requirement, obligation, duty, condition, or warranty as stated in this agreement. Compliance means complete compliance and does not mean substantial compliance. 8.3. Act of Default means failure to timely and fully comply with one or more requirements, obligations, duties, terms, conditions, or warranties, as stated in this agreement. Corporation may, in its sole discretion, accept substantial compliance in lieu of full compliance by waiving the act of default solely by an instrument in writing. 8.4. Insolvent means failure to timely pay debts in the ordinary course of business or cannot pay debts as they become due, or is insolvent within the meaning of the federal bankruptcy law. 8.5. Force Majeure means severe weather, such as tornadoes, flooding, named storms, hurricanes, wars, riots, and the unavailability of necessary and essential equipment and supplies from all sources PC GENERAL TERMS 9.1. Effective Date. The effective date of this Agreement ( "Effective Date ") is the latest date that either party executes this Agreement. 9.2. Term. The term of this Agreement is for one year and expires on July 31, 2009. This agreement may be renewed for an additional one year period upon mutual consent of both parties, and the availability of Corporation funds that have been authorized for this purpose. 9.3. Termination. This Agreement may be terminated by mutual agreement of the parties or by either party, upon the failure of the other party to fulfill an obligation, as set forth in this agreement. The termination of this Agreement extinguishes all rights, duties, obligations, and liabilities of the parties under this Agreement, except all rights, duties, liabilities, and obligations accrued prior to the termination shall survive termination. 9.4. Compliance with Laws. This Agreement is subject to all legal requirements in the City Charter and Code of Ordinances of the City of Corpus Christi and all other applicable county, state, and federal laws. SCORE shall observe and obey all applicable laws, ordinances, Page 9 of 14 SCORE 4A Small Business Development Agreement 07222008-4J- regulations, and rules of the Federal, State, County, and City governments, as may be amended or enacted. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas. 9.5. Assignment. This Agreement is binding upon the parties to this agreement and their successors and assigns. However, SCORE may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 9.6. Indemnity. SCORE covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective officers, employees, and agents ( "Indemnitees ") against all liability, damage, loss, claims, demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with SCORE activities conducted under or incidental to this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. SCORE must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other costs and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 9.7. Buy Local Provision. SCORE agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 -mile radius of Nueces County. 9.8. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: SCORE Chapter 221: SCORE c /o. Ben F. McDonald 3649 Leopard St., Suite 411 Corpus Christi, Texas 78408 Page 10 of 14 SCORE 4A Small Business Development Agreement 07222008Ta!EZ- Corporation: City of Corpus Christi Business and Job Development Corporation Attn: Executive Director 1201 Leopard Street Corpus Christi, Texas. 78401 b. A copy of all notices and correspondence must be sent to the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas. 78469 -9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 9.9. Incorporation of other documents. a. The Corpus Christi Business & Job Development Corporation Guidelines & Criteria for Granting Business Incentives ( "Corporation Guidelines "), adopted September 18, 2007, are incorporated into this Agreement. b. SCORE application submitted to the Corporation for business incentives ( "Application ") is incorporated into this Agreement. c. If there is any conflict in the terms of these documents, the following order controls: (i) This Agreement, (ii) Corporation Guidelines, (iii) Application. 9.10. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 9.11. Relationship of Parties. In performing this Agreement, both the Corporation and SCORE will act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint- venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 9.12. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 9.13. Severability. 1. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or Page 11 of 14 SCORE 4A Small Business Development Agreement 072220081E circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. 2. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 9.14. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. SCORE consents to, and waives any objections to, in personum jurisdiction in Nueces County, Texas. This agreement and the relationship between Corporation and SCORE shall be governed and interpreted under the laws of the State of Texas without regard to any conflict of laws or provisions. 9.15. Sole Agreement. This Agreement constitutes the sole agreement between the Corporation and SCORE. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. Except as otherwise provided in this agreement, this Agreement cannot be modified or amended without a written agreement of the parties. 9.16. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 9.17. Representation. Corporation represents that no Corporation board member or employee, City of Corpus Christi officer or employee, has been or will be compensated in any manner with respect to directly or indirectly bringing the parties hereto together, agreement negotiations, or the entering into of this Agreement. In no event will SCORE pay a fee to or in any manner compensate any Corporation board member or employee, City of Corpus Christi officer or employee, in connection with the acceptance of this Agreement. A breach of this provision (10.17) shall result in automatic and immediate termination of this Agreement, and shall be an act of default by SCORE. 9.18. Other Contracts. It is understood by SCORE that Corporation has heretofore entered, and may hereafter enter, into contracts with other companies or persons upon terms and conditions different from the terms and conditions of this Agreement, and SCORE has no standing to object whatsoever to any contracts or require any modifications or changes to its Agreement due to other agreements. 9.19. Corporation, its officers and employees, and its agents or contractors retained to perform economic development services for Corporation, shall treat as confidential the financial statements of SCORE and shall not release the information to the public, unless Page 12 of 14 SCORE 4A Small Business Development Agreement 0722200✓ �loe required by law or court order. Corporation shall immediately notify SCORE of requests or court orders to release the information. 9.20. All representations, warranties, covenants and agreements of the parties, as well as any rights and benefits of the parties pertaining to the transaction contemplated hereby, shall survive the original execution date of this agreement. 9.21. Renewal. This Agreement may be renewed for an additional one year term upon mutual agreement of the parties hereto. EXECUTED on the date shown opposite the signature of each party. Corpus Christi Business & Job Development Corporation By: Eloy Salazar Chairperson Date: Attest By: Armando Chapa Assistant Secretary Page 13 of 14 SCORE 4A Small Business Development Agreement 07222008 r. SCORE Chapter 221 By: Gaston West President Date: The State of Texas§ County of Nueces§ Before me on this day, Gaston West, President, SCORE Chapter 221, personally appeared, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed this agreement stated as the act of SCORE, for the purposes and consideration expressed in the instrument. Given under my hand and seal of office this the _ day of , 2008. Notary Public, State of Texas Page 14 of 14 SCORE 4A Small Business Development Agreement 0722200flk& BUSINESS INCENTIVES PROJECT AGREEMENT This Business Incentives Project Agreement ( "Project Agreement ") is entered into between the Corpus Christi Business and Job Development Corporation ( "Corporation ") and the City of Corpus Christi, Texas ( "City "). WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vemon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate of one - eighth of one percent to be imposed for 15 years; WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors; WHEREAS, the Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, the Board of Directors of the Corporation ( "Board "), on September 10, 2007, amended the Corporation's Guidelines and Criteria for Granting Business Incentives; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vemon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, the City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on September 18, 2007; WHEREAS, SCORE Chapter 221 has submitted a proposal to the Corporation to request business incentives of approximately $50,000 to be used to assist SCORE Chapter 221 in its operation of its program to assist small business employers in the City of Corpus Christi; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business incentives be offered to SCORE Chapter 221; and WHEREAS, the Corporation and SCORE Chapter 221 have executed an agreement to grant business incentives to SCORE Chapter 221 for the creation of jobs to assist small business employers ( "Business Incentives Agreement "). In consideration of the covenants, promise, and conditions stated in this Project Agreement, the Corporation and the City agree as follows: —671:rage 1 of 3 1. Project Agreement to Implement Business Incentives Agreement. This Project Agreement between the City and the Corporation is executed to implement the Agreement to Grant Business Incentives to SCORE Chapter 221 for the creation of jobs to assist small business employers between the Corporation and SCORE Chapter 221. 2. Term. The term of this Project Agreement runs concurrently with the term of the Business Incentives Agreement. 3. Services to be Provided by City. a. The City Manager, or the City Manager's designee, shall administer funding on behalf of the Corporation. b. The City Manager, or the City Manager's designee, shall perform contract administration responsibilities outlined in the Business Incentives Agreement for the Corporation. 4. Appropriation of Funds. Any future payments by the City are subject to appropriation of funds by City's Council. 5. Effective Date. The effective date of this Project Agreement is the latest date that either party executes this Agreement. 6. Amendments or Modifications. No amendments or modifications to this Project Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 7. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Agreement or the application of this Project Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Project Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Project Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Project Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Project Agreement, then the remainder of this Project Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Project Agreement automatically. —68 -Page 2 of 3 8. Captions. The captions in this Project Agreement are for convenience only and are not a part of this Business Incentives Project Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Agreement. The City of Corpus Christi Corpus Christi Business & Job Development Corporation George K. Noe Eioy Salazar City Manager Chairperson Date: Date: Attest Armando Chapa City Secretary Approved as to Legal Form this _day of July, 2008. R. Jay Reining First Assistant City Attorney for City Attorney A A r' 4.. n7n7on(1G -69f age 3 of 3 5 AGENDA MEMORANDUM July 29, 2008 SUBJECT: West General Aviation Apron Rehabilitation (Project No. 10009) and Drainage Phase V Improvements (Project 10010) AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute Change Order No. 5 to the construction contract with Bay Limited of Corpus Christi, Texas in an amount not to exceed $245,759.00 for a revised contract value of $7,918,270.20 for additional slope paving and repair of a headwall for the Corpus Christi International Airport West General Aviation Rehabilitation and Drainage Phase V Improvement Project. ISSUES: The Federal Aviation Administration (FAA) has provided funding and requested the additional work be undertaken as part of the project. The work is required to address erosion and headwall repair that needs to be undertaken. The work was not bid as part of this project as the FAA previously declined to fund the work as the erosion conditions were deemed minor enough to allow deferral. The FAA delayed funding the work until their discretionary funding became available for their fiscal year. Council must approve the change order in order to undertake the work requested. FUNDING: Funding is available from Airport Capital Improvement Funds and FAA Grant Funds. RECOMMENDATION: Approval of the motion as presented. Fred Segundo Kevin R. Stowers Director of Aviation ADDITIONAL SUPPORT MATERIAL Exhibit A. Background Information Exhibit A -1 Previous Actions Exhibit B. Change Order Summary Exhibit C. Location Map Interim Director of Engineering Services H: \HOME'xEVINS \GEN\AIR_ restored \20041mprovements\WestGM Pron \CO5AwdMemo.doc Page 1 of 1 BACKGROUND INFORMATION CHANGE ORDER INFORMATION: The proposed action constructs additional slope paving for a culvert and repairs a headwall east of Runway 17/35. The slope paving will address erosion problems that emerged after the project was bid and awarded by Council. The headwall repair is also due to erosion. The work was not bid as part of this project as the FAA previously declined to fund the work as the erosion conditions were deemed minor enough to allow deferral. A copy of the change order is attached. See Exhibit B. PROJECT DESCRIPTION: The project as originally awarded consisted of two separate components. The original award was: West General Aviation Ramp - The project has resulted in installation of concrete ramp, flexible base, subgrade, milling existing asphalt pavement for incorporation into the pavement sub -base, removal of the existing sand /shell base material. The project also provides taxiway repairs, taxiway lighting repairs, and other work items. Airfield Drainage Phase 5 — The project has provided for excavation and grading of drainage improvements, installation of: • 1,772 I1. of 4' x 2' box culverts; • 120 I.f. of 24" reinforced concrete pipe (RCP); • Headwalls; • Wingwalls; • security grates; • related structures; and • surface restoration consisting of seeding and sodding for erosion control. FUNDING: Funding for the change order is available from the FAA Grants and Airport CIP Funds. BOARD /COMMITTEE REVIEW: The Airport Board has reviewed the item and recommends approval. Exhibit A Page 1 of 1 H:\ HOME \KEVINS \GENW IR_ restored\ 20041mprovements\ WestQZAA4pron \C05AwdBkgExhA.doc PREVIOUS ACTIONS PRIOR COUNCIL ACTIONS: August 29, 2006 — Motion authorizing the City Manager or his designee to execute and engineering Contract Amendment No. 5 with PGAL of Houston, Texas in the amount of $376,950 for the Corpus Christi International Airport West General Aviation Ramp Rehabilitation and Airfield Drainage Phase 5 projects to provide engineering design, surveying and construction services (M2006 -272). September 19, 2006 — Ordinance adopting the FY2006 -2007 Capital Budget and Capital Improvement Planning Guide (Ord. #02699). June 19, 2007 • Resolution authorizing the City Manager or his designee to execute Amendment No. 3 to Federal Aviation Administration Grant No. 3-48- 0051 - 037 -2005 to extend the scope of the grant to include Runway 13/31 Rehabilitation — Phase II, Runway 17/35 Shoulders And Blast Pads, Airport Drainage Improvements — Phase IV, Terminal Apron, and West GA Apron at Corpus Christi International Airport(Res. No. 027310). • Resolution authorizing the City Manager or his designee to accept Federal Aviation Administration Grant Number 3-48- 0051 - 039 -2007 in an amount not to exceed $8,447,719 to Rehabilitate West GA Apron, Phase II, Rehabilitate Taxiway Systems, Phase I, and Rehabilitate Taxiway Lighting Systems, Phase I; Improve Airport Drainage Area VI, Phase I at Corpus Christi International Airport, Corpus Christi, Texas (Res. No. 027311). • Ordinance appropriating $3,914,214 from the Federal Aviation Administration Grant No. 3 -48- 0051 -39 -2007 in the No. 3020 Airport Capital Improvement Fund to Rehabilitate West GA Apron, Phase II, Rehabilitate of Taxiway Systems, Phase I, Improve Airport Drainage Area VI, Phase 1 and Rehabilitate Taxiway Lighting Systems, Phase I at Corpus Christi International Airport, Corpus Christi, Texas ; changing FY2006 -2007 Capital Budget adopted by Ordinance No. 026997 to increase appropriations by $3,914,214; and Declaring an Emergency (Ord. No. 027312). • Ordinance appropriating and transferring $392,073 From 4611 Airport Capital Reserved Fund to and appropriating in 3020A Airport Capital Reserve Fund as 5% grant match to Rehabilitate West GA Apron Phase II, Rehabilitate Taxiway Systems Ph I, Rehabilitate Taxiway Lighting Systems Phase I and Improve Airport Drainage Area VI Ph I at CCIA; amending the FY 2006 -2007 Operating Budget adopted by Ordinance No. 026908 to increase appropriations by $392,073 and changing the 2007 Capital budget adopted by Ordinance No 026997 to increase appropriations by $392,073; and declaring an Emergency (Ord. No. 027313). • Motion authorizing the City Manager, or his designee, to execute a construction contract with Bay Limited of Corpus Christi, Texas in an amount not to exceed $7,441,437.75 for the Corpus Christi International Airport West General Aviation Apron Rehabilitation and Drainage Phase V Improvements (M2007 -156). Exhibit A -1 Page 1 of 2 H:\ HOME \KEVINS \GENWIR_ restored \2004lmprovements \WestG� �ron \CO5AwdPriorActionsExhA -1.doc • Motion authorizing the City Manager, or his designee, to execute an engineering materials inspection, testing and laboratory services contract with Professional Services Industries, Inc. (PSI) of Corpus Christi, Texas in an amount not to exceed $74,639.00 for the Corpus Christi International Airport West General Aviation Apron Rehabilitation and Drainage Phase V Improvements (M2007 -157). July 17, 2007 - Motion authorizing the City Manager, or his designee, to execute Change Order No. 1 to the construction contract with Bay Limited of Corpus Christi, Texas in an amount not to exceed $99,273.40 for a revised contract value of $7,540,711.15 for a 2 -inch pavement overlay of Pinson Drive and Glasson Drive at Corpus Christi International Airport (M2007 -184). April 22, 2008 - Motion authorizing the City Manager, or his designee, to execute Change Order No. 2 to the construction contract with Bay Limited of Corpus Christi, Texas in an amount not to exceed $143,578.20 for a revised contract value of $7,684,289.35 for additional storm water and pavement work for the Corpus Christi International Airport West General Aviation Rehabilitation and Drainage Phase V Improvement Project. PRIOR ADMINISTRATIVE ACTIONS: December 19, 2005 — Administrative award of a geotechnical contract to PSI of Corpus Christi, Texas in the amount of $3,370.00 for the Corpus Christi International Airport West General Aviation Ramp Rehabilitation and Airfield Drainage Phase 5 projects. May 23, 2008 — Administrative award of Change Order No. 3 with Bay Limited of Corpus Christi, Texas in an amount not to exceed $4,183.40 for 170 sy of additional level up work on the West General Aviation Apron and driveway work on Pinson Drive for a revised contract value of $7,688,481.75 for the Corpus Christi International Airport West General Aviation Rehabilitation and Drainage Phase V Improvement Project. June 16, 2008 - Administrative award of Change Order No. 4 with Bay Limited of Corpus Christi, Texas in a deductive amount not to exceed $15,970.43 for several items including additional pavement level up, tack coat, signage and deduction of dowels, lime, signage, offsite borrow excavation not needed, and other items for a revised contract value of $7,672,511.32 for the Corpus Christi International Airport West General Aviation Rehabilitation and Drainage Phase V Improvement Project. Exhibit A -1 Page 2 of 2 H: \HOME \KEVI NS \GENRAIR_ restored\ 2004Improvements\ WestGAApron \CO5AwdPriorActionsExhA -1.doc —76— DEPARTMENT OF ENGINEERING SERVICES CHANGE ORDER SUMMARY SHEET JULY 22, 2008 PROJECT: CORPUS CHRISTI INTERNATIONAL AIRPORT WEST GENERAL AVIATION APRON REHABILITATION AND DRAINAGE PHASE V IMPROVEMENTS PROJECTS Project No. 10009 and 10010 APPROVED: COUNCIL MOTION 2007 -156 APPROVED 06/19/2007 CONTRACTOR: Bay Ltd. 401 Corn Products Road Corpus Christi, TX 78409 TOTAL CONTRACT AMOUNT $7,441,437.75 25% Limit Amount 1,860,359.44 Change Order No. 1 (07/10/07) 99,273.40 Change Order No. 3 (05/23/08) 4,192.40 Change Order No. 4 (06/18/08) (15,970.43) Change Order No. 5 (07/17/08) 245,759.00 Total $476,832.57 = 6.41% < 25% Exhibit B Page 1 of 3 —77— CHANGE ORDER Department of Engineering Services City of Corpus Christi, Texas CHANGE ORDER NO: 5 PROJECT NO: 10009, 10010 CONTRACT TIME: 250 CD Operating Department: CCIA DATE: June 18, 2008 Name of Project: West General Aviation Rehabilitation (Project No. 10009) & Drainage Phase V Improvements (Project No. 10010) Contractor: Bay LTD CHANGE ADD DEDUCT Refer to spreadsheet for breakdown of items. $245,759.00 TOTAL NET: $245,759.00 Why was this change necessary? (If left off the plans and specifications, explain why) Refer to Change Order Tabulation Spreadsheet for Breakdown. (Enclosed) How can similar changes be avoided in the future? Refer to Change Order Tabulation Spreadsheet for Breakdown. (Enclosed) A. CONTRACT PRICE $7,441,437.75 B. TOTAL CHANGE ORDER (inc. current) $ 476,832.57 C. NEW CONTRACT PRICE $7,918,270.32 D. THIS CHANGE ORDER $ 245,759.00 E. PERCENT TOTAL CHANGE (B/A) 6.41% F. PREVIOUS ADDN'L TINE AUTHORIZED -0- G. ADDN'L CONTRACT TIME THIS CHANGE ORDER -20- H. TOTAL ADDITIONAL TIME -20- CITY OF CO US HRISTI, TEXAS CONTRP(STOR By: APPROVED: City Engineer 6130/v e By: Page ?fit B e Operating Department Capital Budget Officer Legal Department -78- P oject Engineer File : \ Mproject\ councilexhibits \exh10009,10010.dwg PROJECT LOCATION 1000 INTERNATIONAL DRIVE CORPUS CHRISTI, TEXAS c&ON RD. LOCATION MAP NOT TO SCALE CESAR CHAVEZ BLVD. HWY 44 AGNES RD. N 1 MD CITY PROJECT No. 10009, 10010 SITE LAYOUT NOT TO SCALE EXHIBIT C" CCIA WEST GENERAL AVIATION APRON REHABILITATION AND DRAINAGE PHASE V IMPROVEMENTS PROJECT#- CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 / 1•• /4.11. ..•..• a 1.....••+Y xxra -1 !I i If Ii 4@ Iii II1 if' li i1 III Il(I if II ai [I!eII 1 ! i 1 11 '' i d' ` ( Iinn li itt I II l' ti : I 1 €i 1 i 1i I € Ii1 111 iiiij''ii II ! I - II # el ti 1 Et I Ili IIa� !1 1 1 1 1 g Y 1 • a E • 1 : is 1 L x r it l : j r 8 i a l ii c c 'g ;^ S E 7- :$ II 'q i R 27: S E : 1 i E II i c 1 B 1 •eEC Y i x 8 8 8 8 8 Q 6 8 1 Y 1 8 8 F1 3 8 8 i 8 y i 1 8 - I- C i B B B i E i j F $� - 7 7 Q I - yy55 }y E p p e ty i i 1 i l 3 i 1 a e i C 1Y 8 G 1 F¢a I 6 5 1 € 5 6 E y Y L { e g 2 I a 8 t e g e g 0 i t 56pz 5 E l i 1 p 5 d EQE[p Lpp . Ai 4 ? W7r. Y Y R i R... 0 iF 8 E r i . 8 i 9 . "s 8 ? 8 8 1 1 8 i5Ea 8► e �i t BB x Y !I2 t I'll l IE IC I 13 II 3 - Ck` L E e 1 L R F "CCCYl II 5 yip 5 8 E 1 h 1 : 1 � E � 1 EE 1i1 Q i L Q qq E • 1 L � B.. i ! {L I .61 ill i ! I : • 11 1 8 1 1 1jJ E 11 111 - i}i[l it �' II - ij!'F!'I'i'tJi! ;1 1i 1 _ 1 i 1 1 i x I i . I i 9(# si Ii i• 1 • rIlipti i "1,ilifi J il 111 1 III 11,1 Ill 1i 11 1 s 1 �� .Il.il 11ji11 (` I. II v I. i n n 111 III ill he 1 Ilf _1lI:Ilp,!ftiff 1 - 1 111 1 l 'I' Is 1 ,11 i t I ii I.1;1I ill% lard ill l l €li_ ij. I ! f f i i I I t ' { i 1111 1 1 i Will 11 I i t1 .lI li 11111111 1 I 1 11 11 1 e 1 III! Mill 1 1 •CI a 1 1 .� ' i C 11 —80— i 1 6 AGENDA MEMORANDUM DATE: July 29, 2008 SUBJECT: Lindale /Chenoweth Subdivision Area Drainage Improvements Phase 1, Part B (Project No. 2243) CHANGE ORDER NO. 17 AGENDA ITEM: Motion authorizing the City Manager, or his designee, to execute Change Order No. 17 to the construction contract with SLC Construction, L. P. from Conroe, Texas in the amount of $91,270, for a total restated fee of $12,142,770.35 for the installation of an 8 -inch water line on Winnebago Street between Carancahua and Upper Broadway. ISSUE: The proposed Change Order No. 17 provides for the installation of an 8 -inch PVC water line on Winnebago Street between Carancahua and Upper Broadway. The work includes fittings, valves, and connections along Winnebago Street between Carancahua and Upper Broadway. The existing water line is a 6 -inch cast iron pipe that is old and deteriorated. It has experienced multiple breaks and numerous patches. Completion of this work will provide improved water service to the area. FUNDING: Funding is available from the FY 2008 Capital Improvement Program (CIP). RECOMMENDATION: Staff recommends approval of the Motion as presented. 7721(3 Gusta o GonzaleL Director of Water Se ices Additional Support Material: Exhibit "A" Background Information Exhibit "B" Prior Project Actions Exhibit "C" Change Order Summary Exhibit "D" Location Map Kevin Stowers, Interim Director of Engineering Services HAUSERS2W OMENELMAP\GEMORAINAGE12243 LINDALE SUBDIVISION\CHANGEsROER NO. 17 GENDA MEMO BACKGROUND INFORMATION SUBJECT: Lindale /Chenoweth Subdivision Area Drainage Improvements Phase 1, Part B (Project No. 2243) CHANGE ORDER NO. 17 CURRENT CHANGE ORDER NO. 17: The proposed Change Order No. 17 provides for the installation of an 8 -inch PVC water line on Winnebago Street between Carancahua and Upper Broadway. The work consists of fittings, valves, and connections, along with the removal and replacement of 50 linear feet of sidewalk and 100 linear feet of curb and gutter. The work includes a Storm Water Pollution Prevention Plan (SWPPP). The existing water line is a 6 -inch cast iron pipe that is old and deteriorated which has experienced multiple breaks and numerous patches. Replacement of the line is work requested by the Water Department and is an urgent priority. Completion of this work will provide improved water service to the area. PROJECT BACKGROUND: In order to expedite the construction and completion of this project in a timely manner before the failure of the aging water line, this work is being included as a change order to the Lindale /Chenoweth Subdivision Area Drainage Improvements projects. The basis for using this contract as a catalyst for the work is based on: • this contractor's experience with projects of a similar nature, including the recently completed Leopard Street waterline work, • the advantageous price of the change order based on unit quantities for the replacement of the existing waterline in the Lindale /Chenoweth Subdivision area, • the ability of the contractor to immediately mobilize on site and begin work, and • the contractor's successful work on the Lindale /Chenoweth Subdivision Area Drainage Improvement project and other City projects. H: HOMBLYNDASkGENISIamwaterl2243 - Lindale Subdivision Drainge ProjecMCENOABACKGROUND.doc EXHIBIT "A" Page 1 of 1 PRIOR PROJECT ACTIONS SUBJECT: Lindale /Chenoweth Subdivision Area Drainage Improvements Phase 1, Part B (Project No. 2243) CHANGE ORDER NO. 17 PRIOR COUNCIL ACTION: 1. April 20, 2004 — Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the contract for professional services with Goldston Engineering Inc. in the amount of $886,305 for a total restated fee of $911,045 for the Lindale /Chenoweth Subdivision Drainage Improvements, Phase 1 project. (Motion No. M2004 -156) 2. November 10, 2004 - Ordinance canvassing returns and declaring the results of the Special Election held on November 2, 2004, in the City of Corpus Christi for the adoption of five bond propositions; adoption of a permanent ad valorem tax freeze on residence homesteads of persons 65 years of age or older or disabled persons and eligible spouses; and adoption of seven amendments to the Charter of the City of Corpus Christi. (Ordinance No. 026022) 3. January 11, 2005 - Motion authorizing the City Manager or his designee to award a construction contract to Ramos Industries Inc. of Pasadena, Texas, in the amount of $3,009,625 for the Lindale /Chenoweth Subdivision Drainage Improvements, Phase 1 Part A for the Base Bid and Additive Alternate No. 1. (Motion No. 2005 -003) 4. March 29, 2005 — Ordinance approving the FY 2005 Capital Budget in the amount of $178,074,800. (Ordinance No. 026188) 5. September 20, 2005 - Motion authorizing the City Manager, or his designee, to execute Change Order No. 1 to the construction contract with Ramos Industries from Pasadena, Texas in the amount of $635,643.62 for the Storm Water Major Outfalls - Lindale/Chenoweth Outfall. 6. November 15, 2005 - Motion authorizing the City Manager or his designee to execute Amendment No. 4 to the contract for professional services with Goldston Engineering Inc. in the amount of $149,058 for the Lindale /Chenoweth Subdivision Drainage Improvements, Phase 1 project. (Motion No. M2005 -395) 7. July 27, 2006 - Motion authorizing the City Manager or his designee to execute Amendment No. 5to the contract for professional services with Goldston Engineering Inc. in the amount of $1,0941,748 for the Lindale /Chenoweth Subdivision Drainage Improvements, Phase 1 project. 8. October 31, 2006 - Motion authorizing the City Manager, or his designee, to award a construction contract to SLC Construction of Conroe, Texas in the amount of $11,300,441.39 for the Lindale / Chenoweth Subdivision Drainage Area Improvements, Phase 1, Bond 2004 Cluster 6 Neighborhood Street Reconstruction and ADA Compliance Alameda Street. (BOND ISSUE 2004) (Motion No. 2006 -355) 9. October 31, 2006 - Motion authorizing the City Manager, or his designee, to execute a Construction Materials Testing Contract with Rock Engineering of Corpus Christi, Texas in the amount of 72,076.00 for the Lindale / Chenoweth Subdivision Drainage Area Improvements, Phase 1, Bond 2004 Cluster 6 Neighborhood Street Reconstruction and ADA Compliance Alameda Street. (BOND ISSUE 2004) (Motion No. 2006 -356) —85— IEXHIBIT "B" I Page 1 of 3 PRIOR COUNCIL ACTION (continued): 10. October 31, 2006 - Motion authorizing the City Manager, or his designee, to execute Amendment No. 7 to the Contract for Professional Services with Goldston Engineering, Inc. of Corpus Christi, Texas in the amount of $274,590 for the Lindale / Chenoweth Subdivision Drainage Area Improvements, Phase 1, Bond 2004 Cluster 6 Neighborhood Street Reconstruction and ADA Compliance Alameda Street. (BOND ISSUE 2004) (Motion No. 2006 -357) 11. April 10, 2007 — Motion authorizing the City Manager or his designee to execute Change Order No. 1 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $261,300.02 for the replacement of existing water lines as part of the Lindale /Chenoweth Drainage project. (Motion No. 2007 -092) 12. December 11, 2007 - Motion authorizing the City Manager or his designee to execute Change Order No. 9 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $192,173.86 as part of the Lindale /Chenoweth Subdivision Area Drainage Improvements, Phase 1, Part B for the Lifecycle replacement of a waterline associated with this project. (Motion No. 2007 -314) 13. December 18, 2007 — Ordinance approving the FY 2008 Capital Budget and Capital Improvement Planning Guide in the amount of $127,275,900. (Ordinance No. 027546) PRIOR ADMINISTRATIVE ACTION: 1. October 18, 2000 — Distribution of Request For Qualifications (RFQ) No. 2000 -08 (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. 2. November 10, 2000 — Addendum No. 1 to the Request for Qualifications (RFQ) No. 2000 -08 (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. 3. January 10, 2001 — Addendum No. 2 to the Request for Qualifications (RFQ) No. 2000- 08 (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. 4. March 23, 2001 — Letter of Notification to the Request for Qualifications (RFQ) No. 2000 -08 (Public Health and Safety, Parks and Recreation, Street Improvement Projects) to 73 local architectural and engineering firms. 5. September 15, 2003 — Executed small NE agreement for professional consultant services with Goldston Engineering, Inc. in the amount of $24,740 for the Lindale Subdivision Drainage Improvements. 6. August 2, 2004 — Executed Amendment No. 2 to the agreement for professional consultant services with Goldston Engineering, Inc. in the amount of $ -0- for the Lindale Subdivision Drainage Improvements. 7. January 7, 2005 - Executed Amendment No. 3 to the agreement for professional consultant services with Goldston Engineering, Inc. in the amount of $16,345 for the Lindale Subdivision Drainage Improvements. 8. September 22, 2006 - Executed Amendment No. 6 to the agreement for professional consultant services with Goldston Engineering, Inc. in the amount of $15,600 for the Lindale Subdivision Drainage Improvements. 9. April 11, 2007 — Executed Change Order No. 2 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $11,500.00 as part of the Lindale /Chenoweth Drainage project. —86— EXHIBIT "B" Page2of3 PRIOR ADMINISTRATIVE ACTION (continued): 10. May 21, 2007 — Executed Change Order No. 3 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $23,625.00 as part of the Lindale /Chenoweth Drainage project. 11. June 12, 2007 — Executed Change Order No. 4 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $24,900.00 as part of the Lindale /Chenoweth Drainage project. 12. June 22, 2007 — Executed Change Order No. 5 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $24,900.00 as part of the Lindale /Chenoweth Drainage project. 13. July 5, 2007 — Executed Change Order No. 6 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $16,971.05 as part of the Lindale /Chenoweth Drainage project. 14. September 18, 2007 — Executed Change Order No. 7 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $21,750.00 as part of the Lindale /Chenoweth Drainage project. 15. October 16, 2007 — Executed Change Order No. 8 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $24,340.00 as part of the Lindale /Chenoweth Drainage project. 16. December 3, 2007 - Executed Change Order No. 10 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $12,743.00 as part of the Lindale /Chenoweth Drainage project. 17. January 8, 2008 - Executed Change Order No. 11 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $18,351.16 as part of the Lindale /Chenoweth Drainage project. 18. February 4, 2008 - Executed Change Order No. 12 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $21,396.00 as part of the Lindale /Chenoweth Drainage project. 19. April 3, 2008 - Executed Change Order No. 13 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $24,736.37 as part of the Lindale /Chenoweth Drainage project. 20. April 22, 2008 - Executed Change Order No. 14 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $24,699.60 as part of the Lindale /Chenoweth Drainage project. 21. May 14, 2008 - Executed Change Order No. 15 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $24,912.90 as part of the Lindale /Chenoweth Drainage project. 22. June 24, 2008 - Executed Change Order No. 16 to the construction contract with SLC Construction, L.P., of Conroe, Texas, in the amount of $22,760.00 as part of the Lindale /Chenoweth Drainage project. —87— IEXHIBIT "B" I Page 3 of 3 Department of Engineering Services Change Order Summary Sheet July 29, 2008 PROJECT: Lindale /Chenoweth Subdivision Drainage Area Improvements, Phase 1 - Part B Project No: 2243 APPROVED: City Council on 10/31/06 Motion No. M2006 -355 CONTRACTOR: SLC Construction, L.P. P.O. Box 639 Conroe, TX 77305 TOTAL CONTRACT AMOUNT $11,300,441.39 25% Limit Amount 2,825,110.34 Change Order No. 1 (Council, 4/10/07) 261,300.02 Change Order No. 2 (4/11/07) 11,500.00 Change Order No. 3 (5/21/07) 23,625.00 Change Order No. 4 (6/12/07) 24,900.00 Change Order No. 5 (6/22/07) 24,900.00 Change Order No. 6 (7/5/07) 16,971.05 Change Order No. 7 (9/18/07) 21,750.00 Change Order No. 8 (10/16/07) 24,340.00 Change Order No. 9 (Council, 12 /11/07) 192,173.86 Change Order No. 10 (12/3/07) 12,743.00 Change Order No. 11 (1/8/08) 18,351.16 Change Order No. 12 (2/4/08) 21,396.00 Change Order No. 13 (4/3/08) 24,736.37 Change Order No. 14 (4/22/08) 24,699.60 Change Order No. 15 (5/14/08) 24,912.90 Change Order No. 16 (6/24/08) 22,760.00 Change Order No. 17 (7/1/08) 91,270.00 Total 842,328.96= 7.45% < 25% -88- IEXHIBIT "C" I Page 1 of 1 \Mproject \councilexhibits \exh2243a. dwg PROJECT LOCATION W. POINT LOCATION MAP NOT TO SCALE PROJECT SITE LIPAN VICINITY MAP NOT TO SCALE PROJECT No. 2243 EXHIBIT "D" 8 -INCH WATER LINE ON WINNEBAGO STREET BETWEEN CARANCAHUA AND UPPER BROADWAY89- CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTL TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 07/21/2008 UMW MEM 7 CITY COUNCIL AGENDA MEMORANDUM Council Action Date: July 29, 2008 AGENDA ITEM: Declaring and dedicating a 4.000 acre (174,246 S.F.) tract of land (Wetland Preservation Site — Tract #1) and a 2.273 acre (99,030 S.F) tract of land (Wetland Buffer Zone — Tract #2) as a wetland preserve; authorizing the City Manager and designee to execute and record the attached real estate instrument to that effect; and authorizing the City Manager and designee to take actions necessary to maintain the property as a wetland preserve subject to and in accordance with the success criteria in the "Final Wetland Mitigation Plan for Master Channel 27 Drainage Improvements," as revised on January 29, 2008, Department of the Army Permit No. 24328. ISSUE: Construction of the Master Channel 27 drainage channel requires excavation of soil within a designated wetland area east of County Road 7B at Brooke Road as shown on the attached Exhbit B. The US Army Corp of Engineers (USACE) granted the City a Section 404 Permit for this excavation on February 6, 2008. Under the conditions of this permit, the City is required to designate a 4 -acre wetland preserve area with a buffer zone on its east, west and south sides. This area will be held by the City in perpetuity as a wetland preserve and will be retained and maintained in the vegetative and hydrologic condition described in the criteria of the Final Mitigation Plan for Master Channel 27 Drainage Improvements. FUNDING: None RECOMMENDATION: Approval of the resolution as presented. Attachments: Exhibit A. Exhibit B. Exhibit C. Exhibit D. zizi_dc--7/2/Ac4 Kevin Stowers Interim Director of Engineering Services Background Information Council Exhibit (Location Map, Wetland Preserve Area) Council Exhibit (Wetland Preservation Site) Resolution H:\HOME\EUSEBIOG \GEN\Agenda Items \Master Channel.Wetland Preserve\Agenda Memorandum.doc —93— BACKGROUND INFORMATION SUBJECT: Master Channel 27 Drainage Improvements ( #2263) Declaration & Dedication of Wetland Preserve PROJECT BACKGROUND: Under Section 404 of the Clean Water Act (33 U.S.C. 1344), the scope and location of certain construction activities, including placing dredged or fill material into "waters of the United States, including wetlands," requires that a permit be obtained from the U.S. Army Corps of Engineers before beginning any work. In compliance with the regulatory program's mitigation plan, the City is required to dedicate as a wetland preserve a 4.000 acre (174,246 S.F.) tract of land (Wetland Preservation Site — Tract 1) and a 2.273 acre (99,030 S.F) tract of land (Wetland Buffer Zone — Tract 2), to ensure that there will be no encroachment of development on the preserve. The purpose and intent of this declaration of wetland preserve is to assure that the subject lands will always be retained and maintained forever predominantly in the vegetative and hydrologic condition described in the success criteria of the Final Wetland Mitigation Plan for Master Channel 27 Drainage Improvements, Department of the Army Permit No. 24328. The permit requires passage of a resolution by the City of Corpus Christi to preserve the mitigation site as a natural wetland area within six month of the issue date of the permit with a copy of the resolution provided to the USACE within 30 days of the passage of the resolution. WETLAND PRESERVE SITE: In June 2007, two parcels of land known as Parcels 14 and 15 were acquired in the out-fall portion of the Master Channel 27 project as shown on Exhibit B. These two parcels contained a total of 9.84 acres mostly comprised of Intertidal Estuarine Wetlands and were within the 100 -year Floodplain. The construction of the 190 foot wide drainage channel involved 3.57 acres situated on the northernmost edge of the parcels. The 4.00 acre Wetland Preserve will be dedicated out of the remaining 6.27 acres as shown on Exhibit C. The wetland buffer zone will be established with the remaining 2.273 acres to ensure that there will be no encroachment of development on the preserve. The City is required to construct a wetland preserve as per the terms and special conditions of the Permit. The special conditions require that authorized losses of wetlands and other waters be offset by restored, enhanced, and created wetlands that replace those acres affected by the drainage channel project. As mitigation for authorized losses of wetlands, the City will abide by the USACE Mitigation Plan to enhance, retain and maintain the preserve in a perpetual vegetative and hydrologic condition. PRIOR COUNCIL ACTION: 1. January 24, 2006 - Ordinance amending the 1961 Master Plan for storm drainage for the area south and west of the City of Corpus Christi, Texas to extend Master Channel 27 from Airline Road west to Cimarron Boulevard and reconfigure Master Channel 27 drainage basin; and providing for publication. (Ord. No. 026634). 2. January 23, 2007 - Motion authorizing the City Manager or his designee to execute a EXHIBIT A —94— Real Estate Sales Contract and a Temporary Construction Easement with the owners Charles Scott Mandel and wife, Thelma Mandel for a total expenditure of $156,718 which includes $130,900 for fee simple property rights to 3.74 acres of land, $2,100 in closing costs, and $23,718 for a 4.77 acre temporary construction easement and related fencing; all out of Lots 17 and 18, Section 20, Flour Bluff and Encinal Farm and Garden Tracts, located on Cimarron Boulevard midway between Saratoga and Yorktown Boulevard; necessary for the Master Channel 27 Drainage Improvement Project ( #2263) and for other municipal purposes. (Motion No. M2007 -023) 3. March 27, 2007 - Motion waiving an irregularity and authorizing the City Manager or his designee to execute a Construction Contract with Ramos Industries, Inc. of Pasadena, Texas in the amount of $10,356,062.70 for the Master Channel 27 Improvement projects for the Base Bid and Additive Alternates No. 1, 3, and 4. (Motion No. 2007- 087) 4. May 15, 2007 - Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract with Gloria Diane Oliver Meerdink in the amount of $25,000 for fee simple property rights to 9.843 acres of land, plus $900 in closing costs; all out of Lots 20 and 21, Section 26, Flour Bluff and Encinal Farm and Garden Tracts, located off of Brooke Road and County Road 7B; necessary for the Master Channel 27 Drainage Improvement Project ( #2263). (Motion No. M2007 -125) 5. May 29, 2007 - Motion authorizing the City Manager, or his designee, to execute a Construction Management Services Contract with Anderson Group Construction Management Company of Corpus Christi, Texas in the amount of $199,350.00 for the Master Channel 27 Drainage Project. (Motion No. M2007 -142) 6. August 21, 2007 - Resolution determining a public necessity to acquire fee simple title to the surface estate only for a storm water drainage project, known as the Master Channel 27 Drainage Project, on five tracts of land known as Parcels 5A,5B,6A,6B, and 6C; and for a related Drainage and Utility Easement known as Parcel 5C; together with two related Temporary Construction Easements; all out of Lots 22, 23, and 24, Section 20, Flour Bluff & Encinal Farm & Garden Tracts; from the owners, Diaz Capital Partnership Ltd. and Nabil Emilady, Trustee; for the public purpose and use as a storm water drainage channel and for other related purposes; and authorizing the City Manager and the City Attorney to acquire the subject parcels by means of the City's power of eminent domain. (Resolution No. 0273374) 7. September 18, 2007 - Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract, Drainage & Utility Easement, and Temporary Construction Easement with Diaz Capital Partnership Ltd. and Nabil Emilady, Trustee in the amount of $175,000 plus $2,500 in closing costs for Parcels 5A, 5B, 5C, 6A, 6B, and 6C, all out of Lots 22, 23, and 24, Section 20, Flour Bluff & Encinal Farm & Garden Tracts located on Brooke Road between Airline Road and Rodd Field Road, necessary for the Master Channel 27 Drainage Improvement Project ( #2263). (Motion No. M2007- 246) 8. October 9, 2007 - Resolution determining a public necessity to acquire fee simple title to the surface estate only for a storm water drainage project, known as the Master Channel 27 Drainage Project, on a tract of land known as Parcel 16; and for a related Inundation and Drainage Easement known as Parce116A; both out of Lot 21, Section 26, Flour Bluff & Encinal Farm & Garden Tracts; from the owners, William C. Oliver, Virginia Oliver Bettiga, Patricia L. Oliver Delong, and Bessie J. Oliver, EXHIBIT A -95- Individually and as Community Survivor for the Estate of Charles D. Oliver, Jr., for the public purpose and use as a storm water drainage channel and for other related purposes; and authorizing the City Manager and the City Attomey to acquire the subject parcels by means of the City's power of eminent domain. (Resolution No. 027439) 9. March 25 , 2008 - Resolution determining a public necessity to acquire fee simple title to the surface estate only for a storm water drainage project, known as the Master Channel 27 Drainage Project ( #2263), Lateral 'A', on five remaining tracts of land known as Parcels 10, 11a, and 12a ; and related Utility Easements known as Parcels 11b and 12b; for the public purpose and use as a storm water drainage channel and for other related drainage purposes; and authorizing the City Manager and the City Attorney to acquire the subject parcels by means of negotiations or exercise of the City's power of eminent domain. (Resolution No. 027614) 10. Mav 13, 2008 - Motion authorizing the City Manager or designee to execute a Real Estate Sales Contract and a Utility Easement with the owner Calvary Chapel of the Coastlands in the total amount of $65,500, for fee simple property rights to a 0.383 acre tract of land known as Parcel 11A and for a 0.095 acre Utility Easement known as Parcel 11B, plus $1,500 in estimated closing costs; all out of Lot 2, Block 1, Brandywine South Unit 1, located on Rodd Field Road, south of Saratoga Boulevard; necessary for the Master Channel 27 Drainage Improvement Project ( #2263) and for other municipal purposes. (Motion No. M2008 -18) 11. June 10, 2008 - Motion authorizing the City Manager or designee to execute a Real Estate Sales Contract and a Utility /Temporary Construction Easement with the property owner, Alty Enterprises, Inc., in the total amount of $254,066 for fee simple property rights to a 1.740 -acre tract of land known as Parcel 12A and for a 0.212 -acre Utility Easement and .705 -acre Temporary Construction Easement collectively known as Parcel 12B, plus $2,200 in estimated closing costs; all out of Lot 7, Section 20, Flour Bluff & Encinal Farm & Garden Tracts, located on Saratoga Boulevard, west of Rodd Field Road; necessary for the Master Channel 27 Drainage Improvement Project ( #2263) and for other related public purposes. (Motion No. 2008 -146) ADMINISTRATIVE ACTION: July 15, 2008 - Executive Session under Section 551.072 of the Texas Government Code to deliberate the purchase, exchange, lease or value of real property - 7.197 acre tract of land out of Lot 12, Section 31, Flour Bluff & Encinal Farm & Garden Tracts, for the South Guth Ball Field Relocation Project, with possible discussion and action related thereto in open session. FUTURE COUNCIL ACTION: 1. Authorize the acquisition of parcels whose cost exceeds $50,000 and, 2. Authorize the payment of any Special Commissioners Award for the condemnation of any parcels whose cost is in excess of $50,000. H:\HOME\EUSEBIOG \GEN\Agenda ItemsVdaster Channel.Wetland Preserve \Background.doc EXHIBIT A -96- File : \ Mproject \councilexhibits \exh2263ccr.dWg LOCATION MAP NOT TO SCALE 4ac. Wetland Preserve CITY PROJECT No. 2263 VICINITY MAP NOT TO SCALE MASTER CHANNEL 27 DRAINAGE IMP. WETLAND PRESERVE DEDICATION 97 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 07 -18 -2008 4.0 ACRES WETLAND PRESERVATION (OWNER: CRY OF CORPUS CHRISTI) REFER TO EXHIBIT IV zt D 040 ACRE PACT AREA uniAp FILL IN ,, i., „ l(PMDR400PADCOFINLCL.INR WETLAND) NrANPRESERVATION = ACRES - g ,-. W ENSATION RATIO 10 TO 1 BUFFER ZONE 4 , ,4 . / ......< J, : (SEE PLAN) C ,,v .. , 0 )1,' 1 , /7 "c'S'. E.PRESERVATION SITE • r ., . ...,..: Froose and t k h31S 54°2 South S t oP sld; 208 Correa C "n. n 784 1-4670 Phone - ( 311) 561-6500 Fox - (361) 1- 6501 -98- PERMIT APPLICATION NO. 24328 AUGUST 14, 2007 MASTER CHANNEL 27 DRAINAGE IMPROVEMENTS CITY PROJECT No. 2263 EXHIBIT C RESOLUTION DECLARING AND DEDICATING A 4.000 -ACRE (174,246 S.F.) TRACT OF LAND (WETLAND PRESERVATION SITE, TRACT #1) AND A 2.273 -ACRE (99,030 S.F) TRACT OF LAND (WETLAND BUFFER ZONE, TRACT #2) AS A WETLAND PRESERVE; AUTHORIZING THE CITY MANAGER AND DESIGNEE TO EXECUTE AND RECORD THE ATTACHED REAL ESTATE INSTRUMENT TO THAT EFFECT; AND AUTHORIZING THE CITY MANAGER AND DESIGNEE TO TAKE ACTIONS NECESSARY TO MAINTAIN THE PROPERTY AS A WETLAND PRESERVE SUBJECT TO AND IN ACCORDANCE WITH THE SUCCESS CRITERIA IN THE "FINAL WETLAND MITIGATION PLAN FOR MASTER CHANNEL 27 DRAINAGE IMPROVEMENTS," AS REVISED ON JANUARY 29, 2008, DEPARTMENT OF THE ARMY PERMIT NO. 24328. WHEREAS, one of the goals of the Clean Water Act is to prevent the degradation of the Nation's waters, including the needless destruction of wetlands; and WHEREAS, under Section 404 of the Clean Water Act (33 U.S.C. 1344), the scope and location of certain activities, including placing dredged or fill material into "waters of the United States, including wetlands," require a permit from the U.S. Army Corps of Engineers before beginning any activity; and WHEREAS, the scope and location of the City's Master Channel 27 Drainage Improvements Project #2263 indicated a "Section 404 Permit"; and WHEREAS, the U.S. Army Corps of Engineers, Galveston District Office, issued Department of the Army Permit Number 24328, which requires that the City perform the authorized activity in accordance with the Permit's terms and special conditions. The special conditions require authorized losses of wetlands and other waters be offset by restored, enhanced, and created wetlands that replace those lost acres, functions and values; and WHEREAS, as mitigation for authorized losses of wetlands, the City has acquired and desires to dedicate as a wetland preserve a 4.000 -acre (174,246 S.F.) tract of land (Wetland Preservation Site, Tract #1), as well as a 2.273 -acre (99,030 S.F) tract of land (Wetland Buffer Zone, Tract #2) to act as a buffer zone to ensure that there will be no encroachment of development on the preserve; and WHEREAS, for unavoidable impacts to waters of the United States, this protected land, which is located within the 100 -year Floodplain, will be monitored by the City and held in perpetuity as a wetland preserve; and —99— WHEREAS, the purpose and intent of this Resolution is to assure that the subject lands will always be retained and maintained forever predominantly in the vegetative and hydrologic condition described in the success criteria of the "Final Mitigation Plan for Master Channel 27 Drainage Improvements," as Revised January 29, 2008, under the City's Section 404 Permit No. 24328; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a 4.000 -acre (174,246 S.F.) tract of land (Wetland Preservation Site, Tract #1) and a 2.273 -acre (99,030 S.F) tract of land (Wetland Buffer Zone, Tract #2), real property owned by the City, more particularly described by metes and bounds, and as shown in the accompanying map (Exhibit "A ") (collectively referred to herein as the "Protected Property ") is land hereby declared and dedicated as a Wetland Preserve, to be monitored by the City and held in perpetuity as a wetland preserve. SECTION 2. This authorizes the City Manager and designee to sign and record the attached real estate instrument to that effect: "Dedication of Wetland Preserve and Deed Restriction," (Exhibit "B "). SECTION 3. This authorizes the City Manager and designee to take other actions that are, in their judgment, necessary to maintain and preserve the Protected Property as a wetland preserve subject to and in accordance with the success criteria in the "Final Wetland Mitigation Plan for Master Channel 27 Drainage Improvements," as revised on January 29, 2008, Department of the Army Permit No. 24328. SECTION 4. This Resolution takes effect immediately from and after its passage. ATTEST: Armando Chapa City Secretary Approved as to form:10- Jul -08 By: Veronica Ocanas Assistant City Attorney for City Attorney —100— CITY OF CORPUS CHRISTI Henry Garrett Mayor day of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -101- $ Brooke Road o o Lei 11 L & L Fomity Partnership, LTD. 55.955 Acres oul of Lots 5-A 6 -A, 7 -4, & all of Lots 9 -11, Sec. 26 F.B. & E.F. & G.T. DOC/ 1998053979, 0.P.R.N.C.T. 40' Roodwoy Eosement Vol. A, Pg. 41 -43, M.R.N.C.T. (Unimproved Rood) (Record > 5 61'00'00" E) — -S 61'20'15" E- 644.47'— s /8° Iron Rod W /Cop Stomped Noismith Eng, County Road IS 61'20'15" E 75.00' S 61'20'15" E 89.17' s 74'08'2 S 61'20'15" E *P0C 12.23= 5/8" Iron./ S 28'45'08" W- 169.92' . I P08 -TRACT 2 Rod Found (Record = S 29•00'00" NZ. '. P08- TRACT 1 L2 \ 1 Lot 10 I, —5 6120'15" E- 434.24'— N 5/6" Iron - Rod Found TRA6T H Ier Zane W N 5308'4" 9oa39's.f) W_ 372.81' 11.212 Acres out of Lots 20 & 21, Sec. 26 F.B. & E.F. & G.T. Vol 1854, Pg, 648, Tract A, D.R.NC.T. (Record Owner: Gloria Dione Oliver Meerdink) 30' Road Easement Lot 20 Vol. 1917, Pg. 639 D. R, N. C. T. NOTES: 1. Bearings ore based on the Texas Coordinate System of 1983 (South Zone) and referenced to the monumented west right- of -woy line of County Rood 7B. 2. Area 4.000 Acres (174,246 S.F.) 3. Buffer Zone = 2.273 Acres (99,030 S.F.) 4. A set 30 inch o/uminum rod with aluminum cop stomped "City of Corpus Christi Wetland Preserve" Maverick Eng. Inc. Corpus Christi, TX at off site corners, unless noted otherwise. 5. All references to record data (Record = *•4) indicate information as cited in Volume 1854, Pages 648 -651, D.R.NC. T. 6. This troct is subject to a blanket Electrical Easement os recorded in Volume 1538, Poge 697, D.R.N. C. T. 1, Randi Evans, hereby certify that the foregoing map was prepared from a survey, mode on the ground, under my direction and that it is true an. ec't.r'Z,, May Engii eerin. Inc. v " N 58'1139" W 211.00' Lot 21 Gloria Diana Oliver Meerdink 3.5 Acres out of Lot 21, Sec. 26 F.B. & E.F. & G.T. DOC/ 985385, 0.P.R.N.C.T. 11 N 61'20'15" W 50.00' L2 S 6120'15" E 160.75' L3 N.58'11'39" W 160.94' * Denotes' o set 5/8 inch iron rod with o plastic cop stamped "Maverick Engr. Corpus Christi, rx, Boundary Marker A At Rand" Evans, R.P.L.S. 5373 ID0 0 100 200 SCALE: I' -200' .q 58/5 Qv: iJiO'•:tESS10: QQ- SUV Ci 02- AC. SO. FT. Wellond Preserve Site 4.000 174,240 Wetland Preserve Site MAP TO ACCOMPANY TWO METES & BOUNDS DESCRIPTIONS: Being o 4.000 acre (174,246 S.F.) tract of land out of that certain 11.212 ocre troct of land os described in Volume 1854, Pages 648 -651 Tract A, Deed Records Nueces County, Texas and out of that certain 3.5 acre tract of land as described in Document No. 985385 of the Official Public Records of Nueces County, Texos, said 11.212 acre tract and 3.500 acre tract being out of Lots 20 & 21, Sec. 26, Flour Bluff and Encinol Farm and Gorden- Trocts, o mop of which is recorded in Volume A, Pages 41 -43, of the Mop Records of Nueces County, Texos. TOGETHER WITH A 2.273 ocre (99,030 S.F.) tract of land for o Buffer Zone adjacent to the above 4.000 acre tract. Project/ 0527 -570 Dote: Moy 27, 2008 MAC MAVERICK ENGINEERING, INC. TEL: 361 696 3500 FAX: 361 696 3721 400 MANN ST., STE. 200 CORPUS CHRIST, TEXAS 78401 STATE OF TEXAS COUNTY OF NUECES TRACT 1 WETLAND PRESERVE SITE 05/27/08 Page 1 of 3 BEING A 4.000 ACRE (174,246 S.F.) TRACT OF LAND OUT OF THAT CERTAIN 3.5 ACRE TRACT OF LAND DESCRIBED IN DOCUMENT NO. 985385 OF THE OFFICIAL PUBLIC RECORDS OF NUECES COUNTY, TEXAS AND OUT OF THAT CERTAIN 11.212 ACRE TRACT OF LAND DESCRIBED IN VOLUME 1854, PAGES 648 -651, TRACT A, OF THE DEED RECORDS OF NUECES COUNTY, TEXAS, SAID 3.5 ACRE TRACT AND 11.212 ACRE TRACT BEING OUT OF LOTS 20 AND 21, SECTION 26 OF THE FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, A MAP OF WHICH IS RECORDED IN VOLUME A, PAGES 41 -43, OF THE MAP RECORDS OF NUECES COUNTY, TEXAS, SAID 4.000 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: COMMENCING at a set 5/8 inch iron rod with a plastic cap stamped "MAVERICK ENGR. CORPUS CHRISTI, TX, BOUNDARY MARKER" for the northeast comer of' said 3.5 acre tract of land, same point being located on the south boundary line of that certain 55.955 acre tract of land as described in Document No. 1998053979 of said Official Public Records, same line being the common boundary line of Lots 10 and 21, of said Section 26 of the Flour Bluff and Encinal Farm and Garden Tracts, and from which point a set 5/8 inch iron rod with a plastic cap stamped "MAVERICK ENGR. CORPUS CHRISTI, TX, BOUNDARY MARKER" for the common corner of Lots 9, 10, 21, & 22 of said Section 26, bears South 61 °20'15" East, a distance of 434.24 feet, said set common comer bears North 28 °38'53" East, a distance of 13.47 feet from a found 5/8 inch iron rod located on the common boundary line of Lots 21 and 22; THENCE South 28 °45'08" West (Record = South 29 °00'00" West), with the east boundary line of said 3.5 acre tract of land and leaving the common boundary line of said Lots 10 and 21, at 12.23 feet pass a found 5/8 inch iron rod, at a distance of 20.00 feet pass the south boundary line of a 40 foot wide roadway easement (unimproved), recorded in Volume A, Pages 41 -43, of said Map Records, in all a total distance of 169.92 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX"; THENCE North 61 °20'15" West, a distance of 50.00 feet, to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX", for the POINT OF BEGINNING and for the northeast corner of said tract herein described; Wetland Preserve Site.doo — 1 0 3— C.. A:I.:..l11.. 05/27/08 Page 2 of 3 THENCE South 28 °45'08" West, a distance of 275.15 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX ", for the southeast corner of said tract herein described; THENCE North 58 °11'39" West, a distance of 160.94 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX ", for a corner of said tract herein described, same point being located on the west boundary line of said 3.5 acre tract and on the east boundary line of that certain 11.212 acre tract of land as recorded in Volume 1854, Page 648 of the Deed Records of Nueces County, Texas; THENCE North 53 °08'04" West, a distance of 381.10 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a comer of said tract herein described; THENCE North 81 °33'09" West, a distance of 205.22 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX ", for the southwest corner of said tract herein described; THENCE North 28 °46'43" East, a distance of 242.86 to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX ", for the northwest corner of said tract herein described; THENCE South 61°20'15" East, a distance of 89.17 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX ", for a corner of said tract herein described; THENCE South 74 °08'23" East, a distance of 180.52 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX ", for a corner of said tract herein described; THENCE South 61 °20'15" East, a distance of 304.46 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", MAVERICK ENGR. CORPUS CHRISTI, TX ", for a corner of said tract herein described, same point being located on the west boundary line of said 3.5 acre tract and on the east boundary line of said 11.212 acre tract of land; THENCE South 61 °20'15" East, a distance of 160.75 feet, to the POINT OF BEGINNING and containing an area of 4.000 acres (174,246 S.F.) of land, more or less. Wetland Preserve Site.doc —104— Initials 05/27/03 Page 3 of Bearings are based on the Texas Coordinate System of 1983 (South Zone) and referenced to the monumented west right -of -way line of County Road 7B. A survey plat of even date was prepared and is made a part of this metes and bounds description. All references to record data (Record = ***) indicate information as cited in Document No. 985385 of the Official Public Records feces County, Texas. di Evans, R.P.L.S. 5373 Maverick Engineering, Inc. 400 Mann Street, Suite 200 Corpus Christi, Tx. 78412 Phone- (361) 696 -3726 v1 � x`378 aTr,Q. SliKP Wetland Preserve Site.doc Initial /e —105— STATE OF TEXAS COUNTY OF NUECES TRACT 2 WETLAND BUFFER ZONE 0527/08 Page 1 of 3 BEING A 2.273 ACRE (99,030 S.F.) TRACT OF LAND OUT OF THAT CERTAIN 3.5 ACRE TRACT OF LAND DESCRIBED IN DOCUMENT NO. 985385 OF THE OFFICIAL PUBLIC RECORDS OF NUECES COUNTY, TEXAS AND OUT OF THAT CERTAIN 11.212 ACRE TRACT OF LAND DESCRIBED IN VOLUME 1854, PAGES 648 -651, TRACT A, OF THE DEED RECORDS OF NUECES COUNTY, TEXAS, SAID 3.5 ACRE TRACT AND 11.212 ACRE TRACT BEING OUT OF LOTS 20 AND 21, SECTION 26 OF THE FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, A MAP OF WHICH IS RECORDED IN VOLUME A, PAGES 41 -43, OF THE MAP RECORDS OF NUECES COUNTY, TEXAS, SAID 2.273 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: COMMENCING at a set 5/8 inch iron rod with a plastic cap stamped "MAVERICK ENGR. CORPUS CHRISTI, TX, BOUNDARY MARKER" for the northeast comer of said 3.5 acre tract of land, same point being located on the south boundary line of that certain 55.955 acre tract of land as described in Document No. 1998053979 of said Official Public Records, same line being the common boundary line of Lots 10 and 21, of said Section 26 of the Flour Bluff and Encinal Farm and Garden Tracts, and from which point a set 5/8 inch iron rod with a plastic cap stamped "MAVERICK ENGR. CORPUS CHRISTI, TX, BOUNDARY MARKER" for the common comer of Lots 9, 10, 21, & 22 of said Section 26, bears South 61 °20'15" East, a distance of 434.24 feet, said set common corner bears North 28 °38'53" East, a distance of 13.47 feet from a found 5/8 inch iron rod located on the common boundary line of Lots 21 and 22; THENCE South 28 °45'08" West (Record = South 29 °00'00" West), with the east boundary line of said 3.5 acre tract of land and leaving the common boundary line of said Lots 10 and 21, at 12.23 feet pass a found 5/8 inch iron rod, at a distance of 20.00 feet pass the south boundary line of a 40 foot wide roadway easement (unimproved), recorded in Volume A, Pages 41 -43, of said Map Records, in all a total distance of 169.92 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for the POINT OF BEGINNING and the northeast corner of said tract herein described; Wetland Huffer Zone.doo _ 1 06— Initials 1;5 05/27/08 Page 2 of 3 THENCE South 28 °45'08" West (Record = South 29 °00'00" West), with the east boundary line of said 3.5 acre tract of land a distance of 353.65 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for the southeast comer of said tract herein described; THENCE North 58 °11'39" West, a distance of 211.00 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" located on the west boundary line of said 3.5 acre tract of land and on the east boundary line of that certain 11.212 acre tract of land, as recorded in Volume 1854, Page 648 of the Deed Records of Nueces County, Texas, for a corner of said tract herein described; THENCE North 53 °08'04" West, a distance of 372.81 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a corner of said tract herein described; THENCE North 81 °33'09" West, a distance of 294.00 feet, to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" located on the east right -of -way line of said County Road 7B, a description of which is recorded in Volume 1917, Page 639, of said Deed Records of Nueces County, Texas, for the southwest corner of said tract herein described; THENCE North 28 °46'43" East (Record = North 29 °00'00" East), with said east right - of -way line of said County Road 7B a distance of 350.48 to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for the northwest corner of said tract herein described; THENCE South 61 °20'15" East, a distance of 75.00 feet, to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a corner of said tract herein described; THENCE South 28 °46'43" West, a distance of 242.86 feet, to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a corner of said tract herein described; THENCE South 81 °33'09" East, a distance of 205.22 feet, to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a corner of said tract herein described; Wetland Buffer Zone.doc —1 0 7— Initials Ili Exhibit "A" 05mroa Page3of3 THENCE South 53 °08'04" East, a distance of 381.10 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" located on the west boundary line of said 3.5 acre tract of land and on the east boundary line of' said 11.212 acre tract for a corner of said tract herein described; THENCE South 58 °11'39" East, a distance of 160.94 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a corner of said tract herein described; THENCE North 28 °45'08" East, a distance of 275.15 feet to a set 30 inch aluminum rod with aluminum cap stamped "CITY OF CORPUS CHRISTI WETLAND PRESERVE ", "MAVERICK ENGR. INC. CORPUS CHRISTI, TX" for a corner of said tract herein described; THENCE South 61 °20'15" East, a distance of 50.00 feet to the POINT OF BEGINNING and containing 2.273 acres (99,030 S.F.) of land, more or less. Bearings are based on the Texas Coordinate System of' 1983 (South Zone) and referenced to the monumented west right -of -way line of County Road 7B. A survey plat of even date was prepared and is made a part of this metes and bounds description. All references to record data (Record = * * *) indicate information as cited in Document No. 9 , 385 of the Official Public Records o Nueces County, Texas. andi Evans, R.P.L.S. 5373 Maverick Engineering, Inc. 400 Mann Street, Suite 200 Corpus Christi, Tx. 78412 Phone- (361) 696 -3726 Wetland Buffer Zone.doc —1 0 8— Initials at DEDICATION AS A WETLAND PRESERVE and DEED RESTRICTION The CITY OF CORPUS CHRISTI is the owner of certain real property, to wit: a 4.000 -acre (174,246 S.F.) tract of land (Wetland Preservation Site, Tract #1) and a 2.273 -acre (99,030 S.F) tract of land (Wetland Buffer Zone, Tract #2), more particularly described and shown in the attached map and metes and bounds description (Exhibit "A ") (collectively referred to herein as the "Property "). The City hereby dedicates the Property for a wetland preserve, a special condition of the "Department of the Army Permit Number 24328," dated 2/5/08, and the "Final Wetland Mitigation Plan for the Master Channel 27 Drainage Improvements, Revised 1/29/08," (Mitigation Plan). One of the conditions of DA Permit Number 24328 requires the City, as Owner, to place restrictions on the deed for the Property for the purpose of providing compensation for adverse impacts to waters of the United States. This dedication and instrument is to assure that the Property will be retained and maintained forever predominantly in the natural vegetative and hydrologic condition described in success criteria of said Mitigation Plan. Activities which may, in the future, be conducted within the Property, that will affect the vegetative and or the hydrologic conditions outlined in the success criteria of the Mitigation Plan, must be coordinated with and approved by the United States Army Corps of Engineers (USACE), Galveston District, Regulatory Branch, prior to beginning the activity. The Property is subject to the following conditions: 1) Property Description: Attachment A -1: a) Exhibit "A" -- Map and Accompanying two Metes & Bounds, Tract 1 #1 & Tract #2 b) Exhibit `B" from the "Department of the Army Permit Number 24328," dated 2/5/08, and "Final Wetland Mitigation Plan for the Master Channel 27 Drainage Improvements, Revised 1/29/08 "; c) On -site photographs taken at appropriate locations on the Protected Property including all major natural features; c) A copy of the deed to the Property, with an accurate legal description or a current survey certified by a Texas Registered Professional Land Surveyor (RPLS) of the Protected Property; d) A copy of a verified wetland survey map, which delineates all waters of the United States, including wetlands within the Property. DEDICATION AS A WETLAND PRESERVE & DEED RESTRICTION 072908 Resolution —109— Exhibit B Page 1 of 4 2) Term These restrictions run with the land in perpetuity and are binding on the Owners and transferees, future owners, heirs, successors, administrators, assigns, lessees, or other occupiers and users. Owner is filing this Wetland Preserve Dedication of record with the County Clerk of Nueces County, Texas within 10 days of the date this document is signed, and will provide a copy of the recorded instrument to the USACE, Galveston District within 30 days of filing. 3) General Except for the specific activities, as authorized under DA Permit Number 24328, the following activities are prohibited on the Property subject to this Dedication: I (a) There must be no filling, excavation, mining, or alteration of the Property that will affect the success criteria outlined in the Mitigation Plan unless approved in writing in advance by the USACE, Galveston District. (b) If the Property is ever sold, the City must require the future owner and transferee to sign a sworn notice of transfer acknowledging the deed restrictions herein, and a copy of the signed notice of transfer, as well as a copy of Permit # 24328, must be forwarded to the Galveston District Office to validate the transfer of the authorization. (c) If the Property is ever sold, the City must require the future owner and transferee to sign a sworn notice of transfer acknowledging the deed restrictions herein, and a copy of the signed notice of transfer, as well as a copy of Permit # 24328, must be forwarded to the Galveston District Office to validate the transfer of the authorization. (d) This Property must be used in perpetuity for the purposes for which it was acquired. This Property was acquired for a wetland preserve under the Section 404 of the Clean Water Act (33 U.S.C. 1344). If the Property is ever sold or used for purposes contrary to those for which it was acquired, the United States Army Corps of Engineers, Galveston District Office must be notified, and the Property reverts back to the City of Corpus Christi, to forever be held in perpetuity as a dedicated wetland preserve under Section 404 of the Clean Water Act (33 U.S.C. 1344). 4) Rights of Access and Entry The IJSACE has the right to enter and go upon the Property to inspect, and to take actions including but not limited to scientific or educational observations and studies, and collection of samples. DEDICATION AS A WETLAND PRESERVE & DEED RESTRICTION 072908 Resolution —110— Exhibit 6 Page 2 of 4 5) Enforcement In the event of a breach of the restrictions by the Owner, or a third party working with the permission of or under the direction of the Owner, the USACE must be notified immediately. If the USACE becomes aware of a breach of this Agreement, the USACE will notify the Owner of the breach. The Owner will have 30 days after receipt of the notice to take actions that are reasonably calculated to swiftly correct the conditions constituting the breach. If the Owner corrects the conditions constituting the breach in a timely and reasonable manner, no further action is warranted or authorized. If the Owner fails to begin to take the said corrective action within 30 days or fails to complete the necessary corrective action, the USACE may take actions, including legal proceedings, as are necessary to effect the corrective action. Any forbearance on the part of the USACE to exercise its rights in the event of a breach of the restrictions must not be deemed or construed to be a waiver of their rights hereunder in the event of any subsequent failure of the Property owner to comply. OWNER: THE CITY OF CORPUS CHRISTI By: George K. Noe, City Manager Approved as to legal form this STATE OF TEXAS COUNTY OF NUECES of , 2008. By: Veronica Ocanas, Assistant City Attorney ACKNOWLEDGMENT This instrument was acknowledged before me on , 2008, by George K. Noe, as City Manager of the City of Corpus Christi, a Texas municipal corporation, on behalf of said corporation. Notary Public, State of Texas DEDICATION AS A WETLAND PRESERVE & DEED RESTRICTION 072908 Resolution —1 1 1 — Exhibit B Page 3 of 4 AFTER RECORDING RETURN TO: CITY OF CORPUS CHRISTI Department of Engineering Services PROPERTY AND LAND ACQUISITION DIVISION P. O. Box 9277 Corpus Christi, Texas 78469 -9277 DEDICATION AS A WETLAND PRESERVE & DEED RESTRICTION 072908 Resolution —112— Exhibit B Page 4 of 4 8 AGENDA MEMORANDUM July 29, 2008 AGENDA ITEM: Public Hearing and Ordinance approving the amendment to the City's Comprehensive Plan by amending the Master Sanitary Sewer Plan (Wastewater Collection System Master Plan for the Allison W.W.T.P. Service Area) by extending the boundary of Master Plan Basin 26 in the Allison W.W.T.P. Service Area to include approximately 50 acres owned by Turner Industries Group, LLC, including Turner Industries Tract, Block 1, Lot 1 and 24.559 acres out of the Consolidated El Paso Irrigation and Manufacturing Company Tract, State Survey 500, Abstract 582, Nueces County, Texas, that adjoins Turner Industries Tract, Block 1, Lot 1; providing for publication; and declaring an emergency. ISSUE: Tumer Industries Block 1, Lot 1 is a proposed industrial subdivision located east of Clarkwood Road and south of IH 37 Access Road. It is adjacent to, but outside of the boundary of Allison Master Plan Basin 26. The Developer of Turner Industries, Block 1, Lot 1 proposes to extend an 18 -inch sanitary sewer trunk line within the Allison Master Plan Basin 26 service area to connect to City wastewater service. The 18 -inch sanitary sewer trunk line is not consistent with the Allison Wastewater Collection System Master Plan, but could potentially provide gravity service to approximately 366 acres that currently do not have direct access to service. The Developer is seeking reimbursement from the Sanitary Sewer Trunk System Trust Fund for costs associated with construction of the 18 -inch sanitary sewer trunk line. To remain eligible for reimbursement for the construction cost of the 18 -inch trunk line line, the Developer must amend the Wastewater Collection System Master Plan for the Allison Wastewater Treatment Plant Service Area in accordance with Section V.B.6.f)(1)(ii)(1) of the Platting Ordinance, which states that if a proposed sanitary sewer trunk line is not consistent with the applicable master plan the developer's application for reimbursement may not be considered until an amendment to the master plan is approved by Council. RECOMMENDATION: Staff recommends approval of the ordinance as presented. f7 0 1.4i Bob Nix, AICP ACM of Development Services Attachments: ExhibitA Background Information Exhibit B Location Map Exhibit C Proposed Wastewater Trunk Line Extension Exhibit D Existing Master Plan Exhibit E 50 Acre Addition to Basin 26 Exhibit F Amended Master Plan Exhibit G Ordinance —115— AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION BACKGROUND: Turner Industries Tract, Block 1, Lot 1 is 24.559 acres of land, zoned 1 -2 and B-4, located east of Clarkwood Road and south of IH 37 Access Road (Exhibit B). The Planning Commission approved the Turner Industries Tract, Block 1, Lot 1 plat at its December 12, 2007 regularly scheduled meeting. The Planning Commission recommended approval of the proposed amendment to the Wastewater Collection System Master Plan for the Allison W.W.T.P. Service Area at its regularly scheduled meeting on July 23, 2008. Turner Industries Tract, Block 1, Lot 1 does not have access to City wastewater service. During the platting process, wastewater plans and construction and amendment of the Wastewater Collection System Master Plan for the Allison W.W.T.P. Service Area were identified as conditions of platting. The Turner Industries Tract is located adjacent to of Basin 26 in the Allison Wastewater Treatment Plant (WWTP) Service Area. To obtain City wastewater service, the Developer proposes to extend approximately 1,800 linear feet of 8 -inch gravity sanitary sewer collection line and 659 linear feet of 18 -inch gravity sanitary sewer trunk line south along Clarkwood Road from the Turner Industries Tract to a manhole located near the Clarkwood North Lift Station (Exhibit C). The 18 -inch sanitary sewer trunk line is not consistent with the Allison Master Plan. The developer is eligible for reimbursement from the Sanitary Sewer Trunk Main Trust Fund for costs incurred installing the 18 -inch sanitary sewer trunk main, but must amend the existing master plan (Exhibit D) in accordance with Section V.B.6.f)(1)(ii)(1) of the Platting Ordinance, which states that if a proposed sanitary sewer trunk line is not consistent with the applicable master plan the developer's application for reimbursement may not be considered until an amendment to the master plan is approved by Council. At a Special Planning Commission meeting on July 14, 2008, the Planning Commission approved a variance to Section V.B.6.f)(1)(ii)(1) of the Platting Ordinance. The variance allowed Council to approve the Developer's Sanitary Sewer Trunk Line Construction and Reimbursement Agreement on July 15, 2008, prior to Council approval of the sanitary sewer master plan amendment scheduled for City Council action on July 29, 2008. The proposed master plan amendment increases the size of Basin 26 in the Allison Master Plan Service Area, from 4,962 acres to 5,012 acres, a total of 50 acres (Exhibit E), which equates to a 1% increase in the size of Basin 26. The 50 acre addition to Basin 26 includes 24.599 developable acres from Turner Industries Tract, Block 1, Lot 1 and approximately 25 acres of undeveloped land currently zoned 1 -2. The amended 1 of 2 —1 1 6— Exhibit A master plan and the master plan amendment ordinance are attached (Exhibits F and G). The Developer's engineer performed all wastewater flow calculations using the design parameters in the Allison Master Plan. Assuming Turner Industries will employ 185 people at full build out in 2012, the engineer determined the average daily flow will be 2,775 gallons per day. The engineer also determined the design flow to be 15,500 gallons per day. The design flow figure includes a peak factor of 2.0 and Inflow and Infiltration of 400 gallons per acre per day. The net added pump time at average daily flow is 2 minutes, which is a 0.20% increase in lift station pump run time at the Clarkwood North Lift Station. The net change by adding the industrial site to Basin 26 is not significant and does not change existing service conditions placed on the system. Staff recommends approval of the master plan amendment because the increase in flow to the Allison WWTP from the proposed development and impacts to the existing wastewater collection system are negligible. Also, upon completion of infrastructure construction a significant amount of adjacent land in addition to the Turner Industries Tract will have reasonable access to City wastewater service. 2 oft —117— Exhibit A ; ut> 0 0 TUIner Industries Tract Lot 1 ir 21946 Acres 1.04.3,102.653t Exhibit C I © 2008 by U Page 1 of 1 SANITARY SEWER MASTER PLAN AMENDMENT TURNER INDUSTRIES TRACT BLOCK 1, LOT 1 CORPUS CHIME TEXAS 1 1EURBA ENGINEERING CORPUS CHRISTI, TEXAS 277A INER CHRISM '112eAS 73204 om PliargiBt oILITIC:18 Z.81-1176r4-1 DATE: 6/9/2003 BY: KP -119- Turner Industries Tract, Block 1, Lot 1 Sanitary Sewer Master Plan Amendment cttextr000geno IJAv.ANOtu) .415,aCEIV 70a AP 'ir✓ J' U r � W «; 1 ii '1 ._ In ,460.e4 1,,'0 =,.,; A 3f 3 1 5. 46 St t ..," .. ` - !. ,. 1 Existing Master Plan —120— Exhibit D Turner Industries Tract, Block 1, Lot 1 Sanitary Sewer Master Plan Amendment 50 Acre Addition to Basin 26 -121- Exhibit E Turner Industries Tract, Block 1, Lot 1 Sanitary Sewer Master Plan Amendment FORE iM tFl], NEMER DKRA11 S4IX amawMWI$ta KM ROKIstNMLWWMSTIGtn Amended Master Plan -122- Exhibit F Page 1 of 3 AN ORDINANCE AMENDING THE CITY'S COMPREHENSIVE PLAN BY AMENDING THE MASTER SANITARY SEWER PLAN (WASTEWATER COLLECTION SYSTEM MASTER PLAN FOR THE ALLISON W.W.T.P. SERVICE AREA) BY EXTENDING THE BOUNDARY OF MASTER PLAN BASIN 26 IN THE ALLISON W.W.T.P. SERVICE AREA TO INCLUDE APPROXIMATELY 50 ACRES OWNED BY TURNER INDUSTRIES GROUP, LLC, INCLUDING TURNER INDUSTRIES TRACT, BLOCK 1, LOT 1 AND 24.559 ACRES OUT OF THE CONSOLIDATED EL PASO IRRIGATION AND MANUFACTURING COMPANY TRACT, STATE SURVEY 500, ABSTRACT 582, NUECES COUNTY, TEXAS, THAT ADJOINS TURNER INDUSTRIES TRACT, BLOCK 1, LOT 1; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the amendment of the Wastewater Collection System Master Plan for the Allison W.W.T.P. service area by extending the boundary of Master Plan Basin 26 in the Allison W.W.T.P. service area to include approximately 50 acres owned by Turner Industries Group, LLC, including the Turner Industries Tract, Block 1, Lot 1 and approximately 24.559 acres out of the Consolidated El Paso Irrigation and Manufacturing Company Tract, State Survey 500, Abstract 582, Nueces County, Texas, that adjoins Turner Industries Tract, Block 1, Lot 1. WHEREAS, with proper notice to the public, public hearings were held on Wednesday, July 23, 2008, during a meeting of the Planning Commission, and on Tuesday, July 29, 2008, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that this adoption would best serve public health, necessity, and convenience, and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City's Comprehensive Plan is amended by amending the Master Sanitary Sewer Plan (Wastewater Collection System Master Plan for the Allison W.W.T.P. service area) by extending the boundary of Master Plan Basin 26 in the Allison W.W.T.P. service area to include approximately 50 acres owned by Turner Industries Group, LLC, including the Turner Industries Tract, Block 1, Lot 1 and approximately 24.559 acres out of the Consolidated El Paso Irrigation and Manufacturing Company Tract, State Survey 500, Abstract 582, Nueces County, Texas, that adjoins Turner Industries Tract, Block 1, Lot 1. Exhibit A illustrates the approximately 50 acres owned by Turner Industries Group, LLC. Exhibit B is the Tumor Wastewater Master Plan Ord 07102008.doc -123- Page 2 of 3 revised Wastewater Collection System Master Plan, Allison Service Area, Wastewater Collection System Model, Sheet 27 of 30, City Project #7235. SECTION 2. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 29th of July, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED as to form: July 9, 2008 By: R. y %fining First Assistantty Attorney For City Attorney Tumer Wastewater Master Plan Ord 07102008.doc -124- Henry Garrett Mayor Page 3 of 3 Corpus Christi, Texas Day of , 2008 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: 1 /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, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Turner Wastewater Master Plan Ord 0710200B.doc —125— 9 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 7/29/08 AGENDA ITEM: A. ORDINANCE APPROPRIATING $3,200,000 FROM THE UNRESERVED FUND BALANCE IN THE FUND NO. 4010 FOR WATER DEPARTMENT OPERATIONAL COSTS; CHANGING THE FY 07 -08 BUDGET ADOPTED BY ORDINANCE 027352 BY INCREASING EXPENDITURES BY $3,200,000; AND DECLARING AN EMERGENCY. B. ORDINANCE APPROPRIATING $300,000 FROM EXCESS REVENUES IN THE MAINTENANCE SERVICES FUND NO. 5110 FOR UNBUDGETED INCREASED FUEL COSTS; CHANGING THE FY 07 -08 BUDGET ADOPTED BY ORDINANCE 027352 BY INCREASING BOTH REVENUES AND EXPENDITURES BY $300,000 EACH; AND DECLARING AN EMERGENCY. ISSUE: The City Charter prohibits Funds from overspending appropriations approved by the City Council. The City Charter requires new appropriations to be presented for Council approval to increase expenditures in these funds, in order to meet operational expenses. The Water and Maintenance Services Funds are anticipated to overspend their appropriations due respectively to water emergency issues /increased chemical costs /uncollectible accounts and unexpected increases in fuel prices. These "housekeeping" ordinances are necessary to insure the City is in compliance with Charter requirements. REQUIRED COUNCIL ACTION: Approval of Ordinances to increase appropriations is required to remain in compliance with the City Charter. —129— "Eddie Ho ihan Assistant Director of Management & Budget BACKGROUND INFORMATION There are three major reasons for the overbudgeted expenditures in the Water Fund for fiscal Year 2007 -2008. First, there were two citywide boil -water notices in July and August of 2007 resulting in unexpected expenditures of over $2.3 million, required to put the City in compliance with regulatory requirements. Secondly, the allowance for doubtful accounts expense for delinquent utility customers will be increased by approximately $750,000 to account for disputed water bills from two large customers, related to Storm Water costs recovered through our current rate structure. This amount is over and above the allowance set up annually in the budget for accounts over 120 days old. Thirdly, chemical costs have risen substantially since the budget was prepared and adopted last July 2007. These three items are the main drivers of the need to increase appropriations by $3,200,000. Due to the high fuel costs the Maintenance Services Fund is appropriating an additional $300,000 in order to stay within the approved amount budgeted. Since fuel costs are a pass through in that the corresponding revenue has been received from the using departments, there are excess revenues (revenues collected above the amount budgeted) to cover this appropriation. —130— Page 1 of 2 AN ORDINANCE APPROPRIATING $3,200,000 FROM THE UNRESERVED FUND BALANCE IN THE FUND NO. 4010 FOR WATER DEPARTMENT OPERATIONAL COSTS; CHANGING THE FY 07 -08 BUDGET ADOPTED BY ORDINANCE 027352 BY INCREASING EXPENDITURES BY $3,200,000; AND DECLARING AN EMERGENCY. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $3,200,000 is appropriated from the Unreserved Fund Balance in the Fund No. 4010 for Water Department Operational Costs. SECTION 2. That the FY 07 -08 budget adopted by Ordinance 027352 is changed by increasing expenditures by $3,200,000. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 29th of July, 2008. ATTEST: Armando Chapa City Secretary APPROVED as to form: July 21, 2008 By: 4" Lisa Agu Assistant City Attorney For City Attorney ORD-Approp-WaterFunds.doc CITY OF CORPUS CHRISTI Henry Garrett Mayor —131— Page 2 of 2 Corpus Christi, Texas Day of , 2008 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: 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, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon ORD- Approp -W aterFunds. doc -132- Page 1 of 2 AN ORDINANCE APPROPRIATING $300,000 FROM EXCESS REVENUES IN THE MAINTENANCE SERVICES FUND NO. 5110 FOR UNBUDGETED INCREASED FUEL. COSTS; CHANGING THE FY 07 -08 BUDGET ADOPTED BY ORDINANCE 027352 BY INCREASING BOTH REVENUES AND EXPENDITURES BY $300,000 EACH; AND DECLARING AN EMERGENCY. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $300,000 is appropriated from Excess Revenues in Maintenance Services Fund No. 5110 for unbudgeted fuel costs. SECTION 2. That the FY 07 -08 budget adopted by Ordinance 027352 is changed by increasing both revenues and expenditures by $300,000 each. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 29th of July, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED as to form: July 21, 2008 By: �✓✓iti Lisa Aguil Assistant City Attorney For City Attorney H:LLEG- DIRUeannie 'Lisa \ORD- Approp- MtceFunds.doc —133— Henry Garrett Mayor Page 2 of 2 Corpus Christi, Texas Day of , 2008 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: 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, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon H:LLEG- DIRWeannie \Lisa \ORD- Approp- MtceFunds.doc -134- 10 CITY COUNCIL AGENDA MEMORANDUM July 29.2008 AGENDA ITEM: Motion to authorize the City Manager or designee to execute a First Amendment to Commercial Property Sale and Purchase Agreement and documents necessary to acquire property from Beach Center Corporation located at 501/513 Chaparral Street aka Lots 1-4, Block 11, Beach Portion, Corpus Christi, Texas (approximately 24,990 square feet). ISSUE: Staff is proposing consideration of a 1 sc amendment to the Commercial Property Sale and Purchase Agreement between Beach Center Corporation and the City of Corpus Christi. REQUIREDCOUNCILACTION: An amendment to the original agreementtermsrequires City Council action and approval. PREVIOUS COUNCIL ACTION: 1) City Council adopted the FY2006 Consolidated Annual Action Plan on April 18, 2006 (M2006-125) which approved CDBG funding for the Nueces LP project. 2) City Council adopted the FY2007 Consolidated Annual Action Plan on April 17, 2007 (M2007-106) which approved CDBG funding for the Nueces LP project. 3) City Council approved the Commercial Property Sale and Purchase Agreement on December 18, 2007 (M2007-330) which reprogrammed CDBG funding to purchase Lots 1 & 2, Block 11 and to purchase the leasehold interest of Lots 3 & 4, Block 11, Beach Portion, Corpus Christi, TX (aka The Ward Building and adjacent vacant lots). FUNDING: All of the staff recommendations are consistent with the total funding from the Department of Housing and Urban Development. CONCLUSION AND RECOMMENDATION: Staff recommends approval to the First Amendment to Commercial Property Sale and Purchase Agreement and documents necessary to acquire property from Beach Center Corporation located at 501/513 Chaparral Street aka Lots 1-4, Block 11, Beach Portion, Corpus Christi, Texas (approximately 24,990 square feet). Daniel Gallegos Jr. CD Administrator ADDITIONAL SUPPORT MATERIAL Background Information ~1 BACKGROUND INFORMATION Ori4inal Scope of Work The Nueces Lofts L.P. was proposing that the City of Corpus Christi acquire the property located at 501/513 Chaparral Street aka Lots 1-4, Block 11, Beach Portion, Corpus Christi, TX (approximately 24,990 SF) at the Seller's original acquisition cost of $320,000. The major portion of the property is owned in fee simple; however, the portion occupied by the Ward Building is a leasehold estate with 10 years' remaining on the initial term, plus three 22-year extensions (76 years total). The lease is held by Beach Center Corporation, a Texas corporation, and the current monthly rent is $1,000 per month. No commissions would be due by any party, and the title policy would be paid by the purchaser and closing costs paid as customary. The original conceptwas to demolish the Ward Building, which is primarily situated on Lots 3 & 4, and to construct 67 parking spaces with Lots 1 to 4, Block 11, Beach Portion; however, the Ward Building is eligible for listing on the National Register of Historic Places and any proposed demolition would constitute an adverse affect to this historic property. Revised Scope of Work Due to the unforeseen circumstances of the historical significance of the Ward Building, the special provisions of the agreement have been revised to eliminate any references to constructing 67 parking spaces if the Ward Building is unable to be demolished which is the direction the City is proceeding especially when federal funds are involved. The proposed number of parking spaces being planned is approximately 36 covered spaces with an additional fourto serve the Ward Building, preferences forthe 36 parking spaces is allotted for the Downtown Management District. Also, the sales price has increased from $320,000 to $350,000 to reflect the additional costs absorbed by the seller due to a note maturing. An appraisal in the amount of $495,000 justifies the sales price increase. This City-owned parking development will increase the stock of reserved secure parking for current and future downtown residents which will allow for more rapid absorption of the existing and future apartments in the Downtown Management District, and in turn this will lead to a more rapid increase in the full-time population of downtown. As has been demonstrated in other revitalized downtown cores, an increase in the full-time downtown population leads to increased office occupancies and further accelerates creation of additional commercial/retail users in downtown areas. as a result of the improvement in the perception of the neighborhood by the community and its visitors. Ultimately, the improved desirability of Downtown Corpus Christi's neighborhood will lead to increased property tax valuations by way of increased occupancies and increased rates. This will directly increase tax revenues from Downtown for the entire City's benefit. As the need for parking or other downtown space increases, the City will also have the ability to use to property to construct a higher density parking structure or provide for other uses on the property so long as approximately 36 spaces are maintained for residential parking.