HomeMy WebLinkAboutAgenda Packet City Council - 09/23/2008CITY COUNCIL AGENDA
SEPTEMBER 23, 2008
Public Notice is hereby given that City Council Members have been invited to attend the Groundbreaking
Ceremony for the Bayfront Phase I project on Tuesday, September 23, 2008 at 8:30 a.m., at Shoreline Blvd.
between Palo Alto and Fitgerald Streets. A majority of the Council may attend and discuss matter related to
this project.
11:45 A. M. - Preview of Bayfest 2008 presented by Bayfest, Inc. organizers.
AGENDA
CITY OF CORPUS CHRISTI
REGULAR COUNCIL MEETING
CITY HALL - COUNCIL CHAMBERS
1201 LEOPARD ST.
CORPUS CHRISTI, TEXAS 78401
SEPTEMBER 23, 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- espanot 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 Pastor Kevin Jennings, Mt. Olive Lutheran Church.
C. Pledge of Allegiance to the Flag of the United States.
D. City Secretary Armando Chapa to call the roll of the required Charter Officers.
Mayor Henry Garrett
Mayor Pro Tem Priscilla Leal
Council Members:
Melody Cooper Interim City Manager Angel R. Escobar
Larry Elizondo, Sr. City Attorney Mary Kay Fischer
Mike Hummel) City Secretary Armando Chapa
Bill Kelly
John Marez
Nelda Martinez
Michael McCutchon
E. MINUTES:
1. Approval of Regular Meeting of September 9, 2008. (Attachment # 1)
Agenda
Regular Council Meeting
September 23, 2008
Page 2
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
F. BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2)
2. • Sister City Committee
* Museum of Science and History Advisory Committee
* Watershore and Beach Advisory Committee
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 ofa 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)
3. Motion approving the purchase of one (1) modular office building
from M Space Holdings, LCC, of Houston, Texas in accordance
with Bid Invitation No. BI- 0234 -08 based on low bid for a total
amount of $64,990. The modular office building will be
purchased for the Health Department. Funding is available in
the No. 1066 Health Grant Fund. (Attachment # 3)
Agenda
Regular Council Meeting
September 23, 2008
Page 3
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
4.a. Motion authorizing the City Manager or his designee to accept a
grant in the amount of $73,850 from the U.S. Department of
Justice, Bureau of Justice Assistance, for funding eligible under
the FY 2008 Edward Byrne Memorial Justice Assistance Grant,
50% of the funds to be distributed to Nueces County under an
established Interlocal agreement and to execute all related
documents. (Attachment # 4)
4.b. Ordinance appropriating $73,850 from the U.S. Department of
Justice, Bureau of Justice Assistance in the No. 1061 Police
Grant Fund to purchase law enforcement equipment for the
Police Department and Nueces County. (Attachment # 4)
5.a. Resolution authorizing the City Manager or his designee to
execute all documents necessary to accept a $220,000 grant
from the Texas Department of Agriculture to provide after school
snacks to youth enrolled in after school programs for FY 2008-
2009. (Attachment # 5)
5.b. Ordinance appropriating a grant in the amount of $220,000 from
the Texas Department of Agriculture in the No. 1067 Parks and
Recreation Grants Fund to operate the Child and Adult Care
Food Program. (Attachment # 5)
5c. Resolution authorizing the City Manager or his designee to
execute an Interlocal Cooperation Agreement with the Corpus
Christi Independent School District for the After School Snack —
Child and Adult Care Food Program. (Attachment # 5)
6. Motion authorizing the City Manager or his designee to issue a
permit for the temporary street closures of Hughes Street from
Chaparral Street to Mesquite Street and Fitzgerald Street from
Chaparral Street to Mesquite Street for the 48th Annual Texas
Jazz Festival, starting on Friday, October 17, 2008 at 8:00 a.m.
through Sunday, October 19, 2008 at 11:59 p.m. upon meeting
the conditions and requirements for permit in Sec. 49 -17.
(Attachment # 6)
Agenda
Regular Council Meeting
September 23, 2008
Page 4
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
7. First Reading Ordinance — Authorizing the City Manager or his
designee to lease Real Property to the United States Coast
Guard for $1.00 a year for a term of nineteen years, nine months
(beginning on January 1, 2009 and ending on September 30,
2028) in connection with a navigation marker mounted on the
east wall of the South Texas Institute for the Arts Building, an Aid
To Navigation (Aton) structure known as the "Corpus Christi
Channel Cut "B" West Range Front Light (Ac117817) "; providing
for publication. (Attachment # 7)
8. First Reading Ordinance — Amending the Code of Ordinances,
City of Corpus Christi, Chapter 55 regarding rules and
procedures for Public Access Cablecasting regarding program
delivery deadline time; providing for publication. (Attachment # 8)
J. PUBLIC HEARINGS:
ZONING CASES:
9. Case No. 0808 -03, Southside Paint and Body, LLC: A change of
zoning from "B-4" General Business District to a "1 -2" Light
Industrial District resulting in a change of land use from
commercial to light industrial for an automotive paint and body
repair shop on property described as Saratoga Weber Plaza
Block 7, Lot 12, located at 3902 Acushnet Street, approximately
500 feet west of the Weber Road and Acushnet Street
intersection. (Attachment # 9)
Planning Commission & Staffs Recommendation: Denial of the
"1 -2" Light Industrial District and in lieu thereof, approval of a
Special Permit for "automobile repair, heavy" uses without
outdoor storage on the subject property, subject to a site plan
and seven (7) conditions.
ORDINANCE
Amending the Zoning Ordinance, upon application by Southside
Paint & Body, LLC, by changing the Zoning Map in reference to
Saratoga Weber Plaza, Block 7, Lot 12, from "B -4" General
Business District to "B -4 /SP" General Business District with a
Special Permit to allow for an automotive paint and body repair
shop, subject to a site plan and seven (7) conditions; amending
the Comprehensive Plan to account for any deviations from the
existing Comprehensive Plan; providing a repealer clause;
providing for publication.
Agenda
Regular Council Meeting
September 23, 2008
Page 5
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
ALCOHOL VARIANCE REQUEST:
10.a. Public hearing on a request for a variance from Dolores
Gonzales to operate an on- premises alcoholic beverage
establishment known as El Tapatio Mexican Grill located at
13941 Northwest Boulevard. (Attachment # 10)
10.b. Resolution granting a variance under Section 4 -5(f) of the Code
of Ordinances to Dolores Gonzales, d.b.a. El Tapatio Mexican
Grill, to operate an on- premises alcoholic beverage
establishment located at 13941 Northwest Boulevard.
(Attachment # 10)
K. REGULAR AGENDA
CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES:
11. Ordinance by the City Council of the City of Corpus Christi,
Texas, providing for the issuance of City of Corpus Christi,
Texas, Combination Tax and Solid Waste Revenue C ertificates
of Obligation, Series 2008, in the aggregate principal amount of
$12,000,000, and ordaining other matters relating to the subject.
(Attachment # 11)
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 tree que su ingles es limitado, habra un
interprete ingles- espanol en le 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
Agenda
Regular Council Meeting
September 23, 2008
Page 6
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
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.
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
entrance to City Hall, 1201 Leopard
September 19, 2008.
official bullet 'n board at the front
Street, at S CO p.m., on
tUVuxl�c:��e� C 13C
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 Friday
before regularly scheduled council meetings. If technical
problems occur, the agenda will be uploaded on the
Internet by Saturday morning.
Symbols used to highlight action items that implement
council goals are on attached sheet.
City Council Goals 2007 -2009
Ea It
NOWNI
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 Priscilla Leal
Council Members:
Melody Cooper
Larry Elizondo, Sr.
Mike Hummell
Bill Kelly
Michael McCutchon
John Marez*
Nelda Martinez
*Arrived at 10:21 a.m.
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council Meeting
September 9, 2008 - 10:00 a.m.
City Staff:
Interim City Manager Angel R. Escobar
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Assistant City Secretary Mary Juarez
Mayor Garrett called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Council Member Nelda Martinez and the Pledge of
Allegiance to the United States flag was led by Council Member Bill Kelly.
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 called for approval of the minutes of the regular Council meetings of August
19, 2008 and August 26, 2008 and the workshop meeting of August 26, 2008. A motion was made
and passed to approve the minutes as presented.
Mayor Garrett referred to
Airport Board
Richard Drilling (Appointed)
Arts and Cultural Commission
Frank Trimble (Reappointed)
Joe Hilliard (Reappointed)
Ericka Kemm (Appointed)
Amorette Garza (Appointed)
Dr. Lad Young (Appointed)
Paul Bissell (Appointed)
* * * * * * * * * * **
Item 2 and the following board appointments were made:
Animal Control Advisory Committee
Barbara E. Beynon (Appointed)
Samantha Person (Appointed)
** * * * * * * * * **
Mayor Garrett opened discussion on Item 5 regarding the Matthew Thebeau Memorial
Award. Police Chief Bryan Smith stated that Officer Matthew Thebeau passed away in the line of
duty and his parents Larry and Cindy Thebeau and family have requested to set up a fund for the
City to present to a deserving cadet that show the traits and attributes of Officer Thebeau. Mr. & Mrs.
Thebeau thanked the Council for giving the family the opportunity to honor their son and for
providing a way for their son to give back to the community. Ms. Thebeau listed the characteristics
that the recipient of the award should possess including honesty, integrity; humor; humility; athletic
—1—
Minutes — Regular Council Meeting
September 9, 2008 — Page 2
ability; and the heart it takes to be a police officer. Ms. Thebeau announced that the Thebeau family
was presenting the City with a check for $10,000 to set up the Matthew Thebeau Memorial Award.
Sergeant Yolanda Trujillo provided a list of Officer Thebeau's attributes and presented a memorial
plaque that will be on display at the training center in Officer Thebeau's honor.
City Secretary Chapa polled the Council for their votes as follows:
5. RESOLUTION NO. 027825
Resolution authorizing the City Manager or his designee to execute an agreement to
establish the Matthew Thebeau Memorial Award.
The foregoing resolution was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
Mayor Garrett called for consideration of the consent agenda (Items 3 -22). Mr. Abel Alonzo
requested that Item 18 be pulled for individual consideration. Council members requested that
Items 6, 7, 8, 9, 10, 12, 19, and 21 be pulled for individual consideration. City Secretary Chapa
polled the Council for their votes as follows:
3.a. MOTION NO. 2008 -234
Motion authorizing the City Manager or his designee to accept supplemental funding in the
amount of $30,000 from the Governor's Division of Emergency Management, Texas
Department of Public Safety, for additional funding eligible under the FY 2008 Local Border
Security Program and to execute all related documents.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
3.b. ORDINANCE NO. 027823
Ordinance appropriating $30,000 from the Governor's Division of Emergency Management,
Texas Department of Public Safety in the No. 1061 Police Grants Fund for overtime
associated with the Border Star Program.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye "; Marez was absent.
4.a. MOTION NO. 2008 -235
Motion authorizing the City Manager or his designee to accept a grant in the amount of
$89,001 from the State of Texas, Criminal Justice Division to continue the Victims of Crime
Act (VOCA) grant within the Police Department for Year 9 with a City cash match of $19,424,
in -kind match of $3,200 for a total project cost of $111,625 and authorizing the City Manager
or his designee to apply for, accept, reject, alter or terminate the grant.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
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Minutes — Regular Council Meeting
September 9, 2008 — Page 3
4.b. ORDINANCE NO. 027824
Ordinance appropriating $89,001 from the State of Texas, Criminal Justice Division in the
No. 1061 Police Grants Fund for funding available under the Victims of Crime Act (VOCA)
Fund and authorizing the transfer of $19,424 from the No. 1020 Cash Contributions to
Grants Fund to the No. 1061 Police Grants Fund as grant matching funds.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye "; Marez was absent.
11.a. RESOLUTION NO. 027836
Resolution authorizing the City Manager or his designee to accept a grant in the amount of
$394,978 and to execute a contract and all related documents with the Texas State Library
and Archives Commission to continue operation of the South Texas Library System at the
Corpus Christi Public Library for State Fiscal Year 2008 -2009.
The foregoing resolution was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent.
11.b. ORDINANCE NO. 027837
Ordinance appropriating $394,978 from the Texas State Library and Archives Commission
into the Library Grants Fund No. 1068 to continue operation of the South Texas Library
System at the Corpus Christi Public Library for State Fiscal Year 2008 -2009.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye"; Marez was absent.
13.a. RESOLUTION NO. 027840
Resolution authorizing the City Manager or his designee to accept a grant in the amount of
$148,694 and to execute a contract and all related documents with the Texas State Library
and Archives Commission to continue operation of the Interlibrary Loan Referral Center at
the Corpus Christi Public Library for State Fiscal Year 2008 -2009.
The foregoing resolution was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
13.b. ORDINANCE NO. 027841
Ordinance appropriating $ 148,694 from the Texas State Library and Archives Commission
in the No. 1068 Library Grants Fund to continue operation of the Interlibrary Loan Referral
Center at the Corpus Christi Public Library for State Fiscal Year 2008 -2009.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye "; Marez was absent.
Minutes — Regular Council Meeting
September 9, 2008 — Page 4
14.a. RESOLUTION NO. 027842
Resolution authorizing the City Manager or his designee to accept a grant from the State of
Texas, Office of Governor, Criminal Justice Division, in the amount of $10,874.14 for the
Juvenile Accountability Incentive Block Grant Program for an Anti - Shoplifting Education
Program for the Municipal Juvenile Court to reduce juvenile delinquency, improve the
Juvenile Justice System, and increase accountability of juvenile offenders, with a City Match
of $1,208.24 in the No. 1020 General Fund, and a total project cost of $12,082.38.
The foregoing resolution was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marezwas absent.
14.b. ORDINANCE NO. 027843
Ordinance appropriating $10,874.14 from State of Texas, Office of the Governor, Criminal
Justice Division, in the No. 1061 Police Grant Fund for eligible funding under the Juvenile
Accountability Incentive Block Grant Program for an Anti - Shoplifting Education Program for
the Municipal Juvenile Court to reduce juvenile delinquency, improve the Juvenile Justice
System, and increase accountability of juvenile offenders; transferring $1,208.24 from the
No. 1020 General Fund and appropriating it in the No. 1061 Police Grant Fund as grant
matching funds; appropriating $7,500 of estimated program income in the No. 1061 Police
Grant Fund.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye "; Marez was absent.
15. MOTION NO. 2008 -236
Motion authorizing the City Manager or his designee to execute Change Order No. 2 for
leachate pond service roadways, containment pond, culverts, and roadway repairs in the
amount of $297,986.35 with Longhorn Excavators, Inc., of Richmond, Texas for the Cefe F.
Valenzuela Landfill Section 4A Liner & Leachate Collection System and Section 4B
Excavation.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marezwas absent.
16. MOTION NO. 2008 -237
Motion authorizing the City Manager or his designee to execute a Real Estate Sales
Contract with Emil Martin Zuberbueler, et al in the amount of $55,654 plus $1,500 in closing
costs, for the purchase of fee simple property rights for Parcel 1, being 15.901 acres out of
the Margaret Kelly Land, located east of the Corpus Christi International Airport (CCIA) by
Bear Lane and FM 763 (Joe Mireur Road ) in connection with the Taxiway Rehabilitation,
Taxiway Signage /Lighting and Airfield Drainage Project, Phase VI and for other municipal
purposes.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye'; Marezwas absent.
—4—
Minutes — Regular Council Meeting
September 9, 2008 — Page 5
17. MOTION NO. 2008 -238
Motion authorizing the City Manager or his designee to execute a contract with James
Hetherington (Artist) for the design, production, installation, and purchase of a permanent
work of art created in stainless steel, in the amount of $12,375.00 as part of the Percent for
Art Program associated with the Fire Station #17 construction project.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Marez was absent.
20. FIRST READING ORDINANCE
Amending Section 14 -1341, Platting Ordinance Fees, Section 55 -70, Adoption of Rules,
Regulations and Water and Gas Fees, and Section 55- 71(6)(2), (3), and (5), Sewer Tapping
Fees, Code of Ordinances, City of Corpus Christi, to increase or establish fees related to
Platting and Taps; providing for publication.
The foregoing ordinance was passed and approved on its first reading with the following
vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting
"Aye'; Marez was absent.
22. ORDINANCE NO. 027845
Abandoning and vacating a 3,782.34- square foot portion of the Columbia Parkway public
street right -of -way, located just south of the Trojan Drive public street right -of -way; subject to
owner's compliance with the specified conditions. (First Reading 08/26/08)
The foregoing ordinance was passed and approved on its second reading with the following
vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting
"Aye "; Marez was absent.
Mayor Garrett opened discussion on Items 6 -10 regarding grants from the Texas Department
of State Health Services for the Health Department. Council Member McCutchon asked whether the
grant for terrorism is appropriated to a specific fund or the general fund. Acting Director of Public
Health Annette Rodriguez stated that the funds are appropriated to the laboratory. Dr. McCutchon
asked whether the acceptance of these grants would increase the operating budget. Ms. Rodriguez
explained that the grants are not reflected in the general fund. Dr. McCutchon asked whether the
City was the governing body that oversees the grants. Ms. Rodriguez said the City is the fiduciary
agent for the grants and the City is still required to meet the grant criteria. Interim Assistant City
Manager Cindy O'Brien stated that grants are reflected in the annual audit and the City's Annual
Financial Report (CAFR). City Secretary Chapa polled the Council for their votes as follows:
6.a. RESOLUTION NO. 027826
Resolution authorizing the City Manager or his designee to accept a grant of $230,351 from
the Texas Department of State Health Services for personnel costs and other expenses
relating to a plan for responding to an act of terrorism and to execute all related documents.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooperwas
absent.
Minutes — Regular Council Meeting
September 9, 2008 — Page 6
6.b. ORDINANCE NO. 027827
Ordinance appropriating a grant of $230,351 from the Texas Department of State Health
Services in the No. 1066 Health Grants Fund for personnel costs and other expenses
relating to a plan for responding to an act of terrorism.
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.
7.a. RESOLUTION NO. 027828
Resolution authorizing the City Manager or his designee to accept a grant of $241,637 from
the Texas Department of State Health Services to provide an immunization program for
children, adolescents, and adults, with special emphasis on children two years of age or
younger, and to execute all related documents.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Cooperwas
absent.
7.b. ORDINANCE NO. 027829
Ordinance appropriating a grant of $241,637 from the Texas Department of State Health
Services in the No. 1066 Health Grants Fund to provide an immunization program for
children, adolescents, and adults, with special emphasis on children two years of age or
younger.
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.
8.a. RESOLUTION NO. 027830
Resolution authorizing the City Manager or his designee to accept a grant of $202,923 from
the Texas Department of State Health Services to provide essential public health services
and to execute all related documents.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooperwas
absent.
8.b. ORDINANCE NO. 027831
Ordinance appropriating a grant of $202,923 from the Texas Department of State Health
Services in the No. 1066 Health Grants Fund to provide essential public health services.
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.
Minutes — Regular Council Meeting
September 9, 2008 — Page 7
9.a. RESOLUTION NO. 027832
Resolution authorizing the City Manager or his designee to accept a grant of $63,134 from
the Texas Department of State Health Services to provide tuberculosis prevention and
control services and to execute all related documents.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooperwas
absent.
9.b. ORDINANCE NO. 027833
Ordinance appropriating a grant of $63,134 from the Texas Department of State Health
Services in the No. 1066 Health Grants Fund to provide tuberculosis prevention and control
services.
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.a. RESOLUTION NO. 027834
Resolution authorizing the City Manager or his designee to accept a grant of $22,500 from
the Texas Department of State Health Services to provide laboratory services for the
analysis of bay water samples and to execute all related documents.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Cooperwas
absent.
10.b. ORDINANCE NO. 027835
Ordinance appropriating a grant of $22,500 from the Texas Department of State Health
Services in the No. 1066 Health Grants Fund to provide laboratory services for the analysis
of bay water samples.
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.
Mayor Garrett opened discussion on Item 12 regarding a grant from the Texas State Library
and Archives Commission. Council Member Leal asked whether any of the grant funding would be
appropriated to the Greenwood Library. Director of Libraries Herb Canales said that the grant
funding was not for a specific library. Mr. Canales stated that the grant was provided to the fifty -four
member libraries in the South Texas Library System for a salary position and consulting services.
City Secretary Chapa polled the Council for their votes as follows:
12.a. RESOLUTION NO. 027838
Resolution authorizing the City Manager or his designee to accept a grant in the amount of
$79,000 and to execute a contract and all related documents with the Texas State Library
and Archives Commission to continue operation of the Technical Assistance Negotiated
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Minutes — Regular Council Meeting
September 9, 2008 — Page 8
Grant Program administered by the South Texas Library System at Corpus Christi Public
Library for the State Fiscal Year 2008 -2009.
The foregoing resolution was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ".
12.b. ORDINANCE NO. 027839
Ordinance appropriating $79,000 from the Texas State Library and Archives Commission
into the Library Grants Fund No. 1068 to continue operation of the Technical Assistance
Negotiated Grant Program administered by the South Texas Library System at the Corpus
Christi Public Library for State Fiscal Year 2008 -2009.
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 opened discussion on Item 18 regarding a lease agreement with Miracle
League of Corpus Christi, Inc. Abel Alonzo, 1701 Thames, thanked everyone involved in the Miracle
Field project. Director of Parks and Recreation Sally Gavlik provided a brief overview of the project.
City Secretary Chapa polled the Council for their votes as follows:
18. FIRST READING ORDINANCE
Authorizing the City Manager or his designee to execute a twenty-year lease agreement with
Miracle League of Corpus Christi, Inc. for the use of approximately 1.25 acres on the State
School Park Site in consideration of Miracle Field construction, use, and maintenance;
providing for publication.
The foregoing ordinance was passed and approved on its first 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 19 regarding an amendment the Code of
Ordinance to require pre - payment for gasoline or diesel fuel dispensed at a retail fuel business.
Police Chief Bryan Smith stated that gasoline theft has a significant impact on the crime rate in
Corpus Christi and these incidents detract police officers from targeting more serious crimes. Chief
Smith added that this ordinance could deal with this problem from a prevention stand point as
opposed to targeting it as an enforcement problem. Chief Smith said that some businesses have
stated that they would like the law codified so that it is enforced constantly so that it does not give
any business a competitive advantage.
The following topics pertaining to this item were discussed: the reason the City has an
interest in dictating to merchants when customers pay for gas /diesel; whether there has been an
outreach to the retail community; the reason the crime rate imposes an interest in this regulation; the
reason that businesses are not currently requiring pre - payment at the pump; whether Stripes is
currently requiring pre - payment; whether Stripes is trying to keep other businesses from having a
competitive advantage; the person that would be considered the criminal if the ordinance is violated;
how this ordinance would prevent theft; enforcement of this ordinance; the historical crime statistics
for gas drive -offs from 2005 to 2007; inaccurate reporting habits by businesses; economic loss of
state and federal dollars; the economic perspective for having a lower crime rate in the City; use of
cameras at businesses; the penalties for violating the ordinance; and what other cities are enacting
this ordinance.
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Minutes — Regular Council Meeting
September 9, 2008 — Page 9
City Secretary Chapa polled the Council for their votes as follows:
19. FAILED
The foregoing ordinance failed to pass on its first reading with the following vote: Garrett,
Cooper, Elizondo, Hummel], Kelly, Leal, McCutchon, Marez, and Martinez, voting "No ".
Mayor Garrett opened discussion on Item 21 regarding rules of operation for City maintained
cemeteries Council Member Leal asked questions regarding the location of the cemeteries and
whether the City maintains a cemetery in the Flour Bluff area. Director of Parks and Recreation Sally
Gavlik stated that the cemeteries are located behind Coles School and Kennedy Avenue and that
there is not a City maintained cemetery in the Flour Bluff area. City Secretary Chapa polled the
Council for their votes as follows:
21. ORDINANCE NO. 027844
Amending the Code of Ordinances, Chapter 33, Offenses and Miscellaneous Provisions, to
establish Article VIII, regarding rules of operation for City maintained cemeteries; providing
for publication; providing for penalties. (First Reading 08/26/08)
The foregoing ordinance was passed and approved on its second reading with the following
vote: Garrett, Cooper, Elizondo, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye ";
Hummell was absent.
Mayor Garrett referred to Item 23, and a motion was made, seconded and passed to open
the public hearing on the following zoning case:
23. Case No. 0708 -02, Greenwood - Molina Nursery School, Inc.: A change of zoning from a "R-
113" One - family Dwelling District to an "AB" Professional Office District resulting in a change
of land use from residential to commercial on property described as Washington Addition,
Block 1, Lot 14, located at 953 National Street across from the Greenwood - Molina Nursery
School, Inc.
City Secretary Chapa stated that the Planning Commission and staff recommended denial of
the "AB" Professional Office District, and in lieu thereof, approval of a "R -1 B" One - family Dwelling
District with a Special Permit to allow a playground on Washington Addition, Block 1, Lot 14, as an
accessory use to the childcare center occupying Washington Addition, Block 2, Lots 38, 39, 40, and
41 and subject to five (5) conditions.
No one appeared in opposition to the zoning change. Mr. Elizondo made a motion to close
the public hearing, seconded by Ms. Cooper, and passed. Mr. Chapa polled the Council for their
votes as follows:
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Minutes — Regular Council Meeting
September 9, 2008 — Page 10
23. ORDINANCE NO. 027846
Amending the Zoning Ordinance, upon application by Greenwood - Molina Nursery School,
Inc., by changing the Zoning Map in reference to Washington Addition, Block 1, Lot 14, from
"R -1 B" One - Family Dwelling District to "R-1B/SP" One - Family Dwelling District with a Special
Permit to allow a playground, subject to five (5) conditions; 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, Hummell, Kelly, Leal, McCutchon, Marez, and
Martinez, voting "Aye ".
Mayor Garrett referred to Item 24, and a motion was made, seconded and passed to open
the public hearing on the following zoning case:
24. Case No. 0708 -05, Anchor Harbor Mobile Home Community, L.L.C.: A change in zoning
from a "B-4" General Business District to a "T -1A" Travel Trailer Park District with a "PUD -2"
Planned Unit Development -2 Overlay on Tract 1, resulting in a change of land use from
commercial to travel trailer park and "T-1B" Manufactured Home Park District with a "PUD -2"
Planned Unit Development -2 Overlay on Tract 2, resulting in a change of land use from
commercial to manufactured home park on property described as 3.167 acres out of Anchor
Harbor Tract No. 1, located on the north side of South Padre Island Drive and approximately
500 feet west of Paul Jones Avenue.
City Secretary Chapa stated that the Planning Commission and staff recommended approval
of the "T -1 A" Travel Trailer Park District with a "PUD -2" Planned Unit Development -2 on Tract 1 and
"T -1 B" Manufactured Home Park District with a "PUD -2" Planned Unit Development -2 Tract 2 and
subject to a site plan and four (4) conditions.
The following topics pertaining to this item were discussed: the site plan for the planned unit
development; whether a planned unit development was inclusive to include landscaping and
setback requirements; concerns with a freeway view of a trailer park; the location of the trailers; the
reason for placing trailers in that area; the current zoning for the property; the length of time that this
property has been zoned "B-4 "; whether the current zoning was part of the master plan; whether
putting a mobile park adjacent to Padre Island Drive was discussed with the Planning Commission;
the number of units currently on the property; the zoning for the tract located east of the property; the
setback and screening requirements if the ordinance is approved; whether the pool and the existing
house will stay on the property; and the possibility of requiring additional landscaping for mitigation.
No one appeared in opposition to the zoning change. Mr. Elizondo made a motion to close
the public hearing, seconded by Ms. Cooper, and passed.
Dr. McCutchon made a motion to table the ordinance, seconded by Ms. Martinez. The
motion to table was passed and approved with the following vote: Garrett, Cooper, Elizondo, Kelly,
Leal, McCutchon, and Martinez, voting "Aye "; Hummel) voting "No"; Marez was absent.
24. TABLED
Community, LLC, by changing the Zoning Map in reference to 3.167 acres out of Anchor
Harbor, Tract No. 1, from "6 4" General Business District to "T 1A" Travel Trailer Park
•
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Minutes — Regular Council Meeting
September 9, 2008 — Page 11
Mayor Garrett opened discussion on Item 25 regarding the adoption of an ordinance setting
a tax rate of $0.563846 per $100 valuation. Interim Assistant City Manager Cindy O'Brien explained
that this item is for adoption of an ordinance setting the tax rate of $0.563846 and said that this rate
was included as part of the approved budget and is the same rate imposed last fiscal year. Ms.
O'Brien stated that this rate does not exceed the rollback tax rate of $0.578152 but it does exceed
the effective tax rate of $0.548464 that required the two public hearings.
The following items pertaining to this item were discussed: whether this rate is required for
the City to do infrastructure improvements and pay the increase for City employees; the amount of
additional revenue; the amount of revenue collected in 2008; the amount of money needed to cover
all of the City's bills; the tax rate needed in order to not increase the tax rate; the cost of the pay
raise for employees; and whether the City would be able to give the City employees a pay raise if the
effective tax rate was rolled back.
Ms. Leal stated that for the record she was in support of lowering the tax rate.
Mr. Kelly made a motion that the property taxes be increased by the adoption of a tax rate of
$0.563846 per $100 valuation. The motion was seconded by Mr. Hummell.
There were no comments from the audience. City Secretary Chapa polled the Council for
their votes as follows:
25. ORDINANCE NO. 027847
Ordinance setting a tax rate of $0.563846 per $100 valuation; prescribing the taxes to be
levied, assessed and collected by the City of Corpus Christi, Texas for Tax Year 2008 and
for each succeeding year thereafter until otherwise provided and ordained and such other
years, as the same may be applicable.
An emergency was declared, and the foregoing ordinance was passed and approved as
moved by Mr. Kelly and seconded by Mr. Hummell with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, McCutchon, Marez, and Martinez, voting "Aye "; Leal voting "No ".
Mayor Garrett called for a brief recess to present proclamations and listen to public
comment.
* * * * * * * * * * * * *
Mayor Garrett called for petitions from the audience. Joan Veith, 5701 Cain, spoke in
opposition to the petition to raze the Memorial Coliseum. Bob Algeo, 15629 Three Fathoms, spoke
regarding the Veterans Summit; hurricane preparedness; the Bond 2008 work for Aquarius Street
and the Bayfront Phase 3 projects; and the Memorial Coliseum. Johnny French, 4417 Carlton
Street, spoke regarding the improvements for Packery Channel. Mr. French provided the Council
with a disk of the contracts between the Texas General Land Office (GLO) and the City. Jose
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Minutes — Regular Council Meeting
September 9, 2008 — Page 12
Mendez, 5817 Brent Ford, spoke against the proposition to destroy the Memorial Coliseum. JoAnn
Smith, 15530 Cuttysark Street, requested clarification of the location of the area considered for
vehicular restriction on the beach. Teena Liles, 13829 Eaglesnest Bay, spoke in support of
eliminating vehicular traffic by the seawall. Ray Medina, 5413 Cain Drive, spoke regarding the City
not enforcing codes on a property located on Holly Road. Jerry Garcia, Southside Youth Sports,
spoke regarding the City maintaining the Westside Little League fields; the pilot program for South
Guth Youth Sports Complex; and Community Development Block Grant (CDBG) projects. Mary Lou
Huffman, 402 Old Robstown Road, spoke regarding illegal dumping of tires in neighborhoods. Tony
Hartwell thanked Assistant City Manager Margie Rose for responding immediately to issues and
asked the Council to consider ordinances regarding pre - payment of gasoline; requiring the same
gas price throughout the City; implementing half -price gas for fire, police, and emergency vehicles;
and restricting landlords from renting condemned property. Mr. Hartwell requested that more funding
be provided to Animal Control. Trian Serbu, 14310 Playa del Ray, spoke regarding the proposal for
the festival area and wind turbines on the Bayfront and asked the Council to consider repairing the
roof on the Coliseum immediately. Julian Young, 7021 Chiswick, spoke regarding the lighting at the
Skatepark. Luis Corona, Sr., 2805 David, encouraged Interim City Manager Angel Escobar to apply
for the City Manager position.
Mayor Garrett announced the executive sessions, which were listed on the agenda as
follows: (Item 37 was withdrawn)
35. Executive session under §551.087 of the Texas Government Code for deliberations
regarding the offer of a financial or other incentive to a business prospect, the Las Brisas
project, with possible discussion and action related thereto in open session.
36. Executive session under §551.072 of the Texas Government Code for deliberations
regarding the lease of real property adjacent to Lake Corpus Christi, with possible
discussion and action related thereto in open session.
attorney about legal issues relating to the proposed long term power supply contract with
Cities Aggregation Power Project, Inc., with possible discussion and action related thereto in
epen- session-
Mayor Garrett read the following statement regarding Item 26:
"Due to current market conditions resulting in an excess supply of bonds being offered for
sale by Texas political subdivisions, upon the advice of the City's financial advisor, consideration of
the sale of the City's solid waste certificates of obligation shall be delayed for one week, and shall be
considered at the September 16, 2008 City Council meeting."
26. POSTPONED UNTIL SEPTEMBER 16TH
Ordinance by the City Council of thc City of Corpus Chricti, Texas, providing for the issuance
of City of Corpus Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of
Obligation, Series 2008, in thc aggregate principal amount of $12,000,000, and ordaining
other matters relating to the subject.
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Minutes — Regular Council Meeting
September 9, 2008 — Page 13
Mayor Garrett opened discussion on Item 27 regarding the "Voyage: A Journey Through Our
Solar System" exhibit. Director of the Museum of Science and History Rick Stryker stated that the
City Council approved the submission of a grant application to the Institute of Museum and Library
Services in September2007. Mr. Stryker announced that the grant was approved and explained that
this item is to accept the grant and appropriate the funding. Colleen McIntyre, Island Foundation,
referred to a powerpoint presentation including an explanation of the project; partnerships; the
Voyage communities; a description of the exhibit; the components of the exhibit; the selected
location of the sculptures; the items included with the package; the exhibit budget; the expenses for
Phase 1; the total project expenses; and timeline.
There were no comments from the audience. Assistant City Secretary Juarez polled the
Council for their votes as follows:
27.a. MOTION NO. 2008 -239
Motion authorizing the City Manager or his designee to accept and execute all related
documents for a Museums for America Grant from the Institute of Museum and Library
Services in the amount of $150,000 for the exhibit, "Voyage: A Journey Through Our Solar
System" to be installed along Shoreline Boulevard.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
27.b. ORDINANCE NO. 027848
Ordinance appropriating $179,600 into the Museum Grants Fund No. 1069 for the purchase
of the exhibit, "Voyage: A Journey Through Our Solar System" from the following sources:
Museums for American Grant in the amount of $150,000 from the Institute of Museum and
Library Services, $15,000 cash donation from the Corpus Christi Independent School District
Foundation, $11,000 cash donation from American Bank, and $3,600 cash donation from
the Friends of the Corpus Christi Museum of Science and History.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye "; Marez was absent.
27.c. MOTION NO. 2008 -240
Motion authorizing the City Manager or his designee to execute an agreement with
Exhibitology, LLC in the amount of $179,600 for the fabrication of the exhibit, "Voyage: A
Journey Through Our Solar System ".
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
Mayor Garrett opened discussion on Item 28 regarding the establishment of a State
Veterans' Cemetery. City Attorney Fischer announced that this item was postponed by staff.
28. POSTPONED UNTIL SEPTEMBER 16th
Minutes - Regular Council Meeting
September 9, 2008 - Page 14
Mayor Garrett opened discussion on Item 29 regarding a Memorandum of Understanding
with Nueces County for the City - County Health District. George K. Noe provided an overview of the
negotiations with the County regarding administrative procedures at the Health Department
including a single pay schedule for staff; the use of the City plan for paid time off plan; the use of the
City system for travel and mileage reimbursement; employee incentives; use of the City's purchasing
system including P- Cards; restaurant inspection positions and funding; the costs and appointment
of the Director and Assistant Director positions; and grants.
The following topics pertaining to this item were discussed: whether the Commissioners
Court supported the changes and guidelines for grants.
Mayor Garrett made a motion to amend the resolution by changing the wording from
"implement" to "present a plan for". The motion was seconded by Ms. Martinez. The foregoing
motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly,
Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
There were no comments from the audience. City Secretary Chapa polled the Council for
their votes as follows:
29. RESOLUTION NO. 027849
Resolution authorizing the City Manager or his designee to execute a Memorandum of
Understanding with Nueces County to develop and present a plan for administrative
changes within the City - County Health District.
The foregoing resolution was passed and approved as amended with the following vote:
Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye ";
Marez was absent.
Mayor Garrett opened discussion on Item 30 regarding the FY2008 Consolidated Annual
Action Plan (CAAP).
Board.
Council Member Leal made the following statement
"I publicly disclose that I am a member of the Nueces County Community Action Agency
I will obtain no financial interest or benefit from a CDBG, ESG or HOME activity.
I will have no financial interest in any contract with respect to a CDBG, ESG or HOME activity
or its proceeds.
I will abstain from participation in all deliberation and voting of funding related to this board."
Council Member Martinez made the following statement:
"I publicly disclose-that I am a member of the Palmer Drug Abuse Board.
I will obtain no financial interest or benefit from a CDBG, ESG or HOME activity.
I will have no financial interest in any contract with respect to a CDBG, ESG or HOME activity
or its proceeds.
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Minutes — Regular Council Meeting
September 9, 2008 — Page 15
I will abstain from participation in all deliberation and voting of funding related to this board."
City Secretary Chapa made the following statement on behalf of Council Member Marez:
"Mr. Marez disclosed that through his profession, he regularly deals with the ARK
Assessment Center and the Emergency Shelter for Youth.
He will obtain no financial interest or benefit from a CDBG, ESG or HOME activity.
He will have no financial interest in any contract with respect to a CDBG, ESG or HOME
activity or its proceeds.
He will abstain from participation in all deliberation and voting of funding related to the ARK
Assessment Center and the Emergency Shelter for Youth."
Director of Community Development Daniel Gallegos provided a brief overview of the
previous council action and stated that the City received approval of the CAAP on August 21, 2008.
Mr. Gallegos explained that this item requires acceptance of the grants to implement the 2008
CDBG, ESG, and HOME program; execution of the subrecipient agreements and development
projects and activities; appropriate the funding; and execution of an amendment to the FY2008
subrecipient agreement with Del Mar College for Business Resource Center.
There were no comments from the audience. City Secretary Chapa polled the Council for
their votes as follows:
30.a. MOTION NO. 2008 -241
Motion authorizing the City Manager or designee to accept grants from the U. S. Department
of Housing and Urban Development to implement the FY2008 Consolidated Annual Action
Plan, including the Community Development Block Grant (CDBG), the Emergency Shelter
Grant (ESG), and the HOME Investment Partnerships (HOME) Grant, and execute
subrecipient agreements for community planning and development projects and activities.
FY2008 CDBG FUNDING
(1) Amistad Community Health Center - $100,000
(2) Corpus Christi Hope House - $50,000
(3) Del Mar College /Business Resource Center - $150,000
(4) Goodwill Industries of South Texas, Inc. - $100,000
(5) Gulf Coast Council of La Raza, Inc. - $50,000
(6) International Westside Pony League - $95,000
(7) Mental Health Mental Retardation Center of Nueces County (MHMR -NC) - $75,000
(8) Mother Theresa Shelter, Inc. - $100,000
(9) Nueces County Community Action/Weatherization /Minor Home Repair - $60,000
(10) Palmer Drug Abuse Program - $40,000
(11) Wesley Community Center - $50,000
(12) YMCA of the Coastal Bend - $78,066
FY2008 ESG FUNDING
(13) Catholic Charities of Corpus Christi - $15,000
(14) Coastal,Bend Alcohol & Drug Rehabilitation Center d.b.a. Charlie's Place - $15,000
(15) Corpus Christi Hope House, Inc. - $15,000
(16) Corpus Christi Metro Ministries, Inc. - $30,000
(17) Mary McLeod Bethune Day Nursery Inc. - $15,000
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Minutes — Regular Council Meeting
September 9, 2008 — Page 16
(18) The Ark Assessment Center and Emergency Shelter for Youth - $15,000
(19) The Salvation Army - $20,000
(20) Timon's Ministries - $5,000
(21) Wesley Community Center - $12,469
FY2008 HOME FUNDING (CCCIC)
(22) Accessible Housing Resources, Inc. — $85,000
(23) Coastal Bend Alcohol and Drug Rehabilitation Center dba Charlie's Place
$100,000
(24) Nueces County Community Action Interim Financing: Infill Revitalization Project
(CHDO) - $189,000
(25) Nueces County Community Action Agency Acquisition/ Rehab /Resale (CHDO) -
$65,000
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
(NOTE: Martinez abstained on the vote and discussion on the portion of the resolution
relating to the Palmer Drug Abuse Project; Leal abstained on the vote and discussion on the
portion of the resolution relating to the Nueces County Community Action Agency project).
30.b. ORDINANCE NO. 027850
Ordinance appropriating $5,917,493 in the No. 1059 CDBG Grants Fund for the FY2008
Consolidated Annual Action Plan which includes: (1) $4,053,099 for the CDBG Program,
consisting of $3,354,513 of entitlement funds, $470,000 of program income from housing
loans, $128,586 of demolition lien program income, and $100,000 of reprogrammed funds;
(2) $149,967 of entitlement funds for the ESG Program; and (3) $1,714,427 for the HOME
Program, consisting of $1,604,096 of entitlement funds, $10,331of the American Dream
Downpayment Initiative Grant, $100,000 of program income from housing loans, for
approved community planning and development projects and activities.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, and
Martinez, voting "Aye"; Marez was absent.
30.c. MOTION NO. 2008 -242
Motion authorizing the City Manager or his designee to execute amendment to the FY2008
subrecipient agreement with Del Mar College for Business Resource Center to include an
additional carryover amount of approximately $16,198 from the FY2007 Community
Development Block Grant (CDBG) to provide small business assistance and administration.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Marez was absent.
Mayor Garrett opened discussion on Item 31 regarding the initiative proceedings and
consideration of an ordinance pursuant to Article I, Section 4, of the City Charter to raze Memorial
Coliseum and erect an appropriate memorial in an appropriate location honoring: "the sons and
daughters of Nueces County who made the supreme sacrifice in World War If'.
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Minutes — Regular Council Meeting
September 9, 2008 — Page 17
City Secretary Chapa stated that this item is an initiative effort submitted in regards to the
Memorial Coliseum. Mr. Chapa said that the City Charter requires that the City Secretary submit the
request to the City Council. Mr. Chapa added that the Council has the options to either approve an
ordinance to raze the Memorial Coliseum and erect an appropriate memorial at an appropriate
location on first reading; reject the ordinance; or postpone action. Mr. Chapa stated that if the
Council does not take action on this item within 45 days or rejects the ordinance, he will provide the
requester with petition forms for circulation. Mr. Chapa said if the requester receives the sufficient
number of signatures (five percent of register voters); the issue will be placed on the ballot at the
next City Council election,
The following topics pertaining to this item were discussed: the deadline to take action on
this issue; what occurs if the Council does not take action; changes to the initiative effort; whether
the petition can void a decision of the Council; the date when the petition process can begin;
whether the Request for Qualification (RFQ) states that the developer will use the Coliseum as part
of the structure; the timeline for the committee to provide a recommendation; and the reason for the
delay in the RFQ process.
Council Member Leal requested a list of the people that attended the town hall meetings and
voiced their opinions.
Mayor Garrett called for comments from the audience. Johnny French, 4417 Carlton, asked
the Council to continue the process and allow the public to listen to the report provided by the
committee.
Mr. Hummell made a motion to table this item and not address the issue until the Council has
more information. The motion is seconded by Ms. Martinez. The motion to table was passed and
approved with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon,
Marez, and Martinez, voting "Aye ". (Mr. Marez was originally absent during the vote on Item 31.
There was a consensus of the Council to allow Mr. Marez to record his vote.)
31. TABLED
of Nucccs County who -modc the supromo sacrifiico in World War If'.
Mayor Garrett opened discussion on Item 32 regarding the installation of bollards seaward of
the Padre Island seawall. Council Member McCutchon said that this resolution detailed the elements
of the compromise plan for the bollards from the seawall to the north jetty. Dr. McCutchon stated that
there were revisions to the resolution presented.
Dr. McCutchon made a motion to amend the resolution to include the language "whereas,
that the ballot measure is adopted and approved by the General Land Office, the City will work with
the GLO, the Corps of Engineers, etc. to ensure that the beach is renourished as expeditiously as
possible and ongoing studies will determine how to maintain the beach on a continuing basis;
include the word temporary at the beginning of Section 1.a.; and change Section 1.(6) to read "the
orientation of the bollards so as to allow close water access near jetty. The motion was seconded by
Ms. Martinez. The foregoing motion was passed and approved with the following vote: Garrett,
Cooper, Elizondo, Hummell, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Kelly abstained.
The following topics pertaining to this item were discussed: the distance of the bollards that
will extend northward towards the south jetty and the restoration of the beach.
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Minutes — Regular Council Meeting
September 9, 2008 — Page 18
Mayor Garrett called for comments from the audience. Johnny French, 4417 Carlton,
recommended adding a section regarding the restoration of the beach. Hal Suter, Chairman of the
Beach Access Coalition, spoke in support of the resolution as amended. Cliff Schlabach, Coastal
Bend Chapter of the Surfrider Foundation, asked the Council to approve the resolution. Mary Lou
Huffman, spoke in support of open beaches and restoration of the beach.
Dr. McCutchon made a motion to amend the resolution by adding Section 3. The City
Council will undertake efforts to restore beach to a minimum of 200 feet. The motion was seconded
by Ms. Martinez. The foregoing motion was passed and approved with the following vote: Garrett,
Cooper, Elizondo, Hummell, Leal, McCutchon, Marez, and Martinez, voting "Aye"; Kelly abstained.
City Secretary Chapa polled the Council for their votes as follows:
32. RESOLUTION NO. 027851
Resolution establishing the City Council's guidance on the installation of bollards seaward of
the Padre Island seawall to address safety issues related to the eroding beach between
renourishment efforts.
The foregoing resolution was passed and approved as amended with the following vote:
Garrett, Cooper, Elizondo, McCutchon, Marez, and Martinez, voting "Aye "; Hummell was
absent; Kelly abstained.
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 announced that Item
34 regarding a presentation on the status and proposed scheduled of hearings for adoption of the
Unified Development Code (UDC) was pulled.
Mayor Garrett announced that on behalf of the Interim City Manager Angel Escobar and
emergency personnel, the City will continue to monitor Hurricane Ike. Mayor Garrett advised the
community to monitor the media and be prepared.
There being no further business to come before the Council, Mayor Garrett adjourned the
Council meeting at 3:31 p.m. on September 9, 2008.
* * * * * ** * * * * **
-18-
2
a. MUSEUM OF SCIENCE AND HISTORY ADVISORY COMMITTEE — Four (4)
vacancies with terms to 9 -1 -10 and 9 -1 -11 representing the following categories: 3 —
Regular Members and 1 — Nominated by the Friends of the Museum. (Appointed by the
Mayor with advice and consent of the Council.)
DUTIES: To consult with the Museum Director on operation of the museum, to act as
advisory to the City Council on matters pertaining to the operation, support, and
development of the Corpus Christi Museum.
COMPOSITION: Twelve (12) members appointed by the Mayor, with advice and
consent of the Council, to be selected as follows: 1 nominated by CCISD Board; 3
nominated by Friends of the Museum; 2 nominated by Museum Auxiliary; and 6 by the
Mayor who shall seek suggestions from Friends of the Museum, Museum Auxiliary,
Museum Advisory Board, and from Board of Trustees of other Corpus Christi school
districts. Ex- officio members shall include the City Manager and Superintendent of
CCISD, or their designated representatives. The term of each advisory member shall be
three years.
ORIGINAL
MEMBERS TERM APPTD.DATE
*Nelida Ortiz, Chair 9 -01 -08 10 -10 -06
Thomas Kimes (Museum Aux.) 9 -01 -10 9 -11 -07
** *Luella R. Gipson - Torres 9 -01 -10 9 -11 -07
Dr. Robert Hatherill (Friends of the Museum) 9 -01 -09 12 -20 -05
*Lucia Inez Sosa (Friends of Museum) 9 -01 -08 9 -11 -07
Kathy N. Juneau (Museum Auxiliary) 9 -01 -10 9 -11 -07
Linda Tomo (CCISD) 9 -01 -09 12 -20 -05
Jim Moloney (Friends of the Museum) 9 -01 -10 9 -11 -07
*Georganne Gasaway 9 -01 -08 2 -12 -08
Dr. Jonda Halcomb 9 -01 -09 1040 -06
Kimberly Harris 9 -01 -10 9 -11 -07
Dr. Margaret Ellen Bolick 9 -01 -09 9 -23 -03
City vlanager Ex- officio. nonvoting
CCISD Superintendent Ex- officio, nonvoting
(The Museum of Science and History Advisory Committee is recommending the new
appointment of Shannon Madden.)
Legend:
*Seeking reappointment
* *Not seeking reappointment
** *Resigned
* ** *Exceeded number of absences allowed by ordinance
* * ** *Has met six -year service limitation
—21—
ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT
NAME
Nelida Ortiz
Georganne Gasaway
Lucia Inez Sosa — (Friends
of Museum)
NO. OF MTGS.
THIS TERM
11
6
11
NO.
PRESENT
10 (lexc)
5 (lexc)
9 (lexc)
OTHER INDIVIDUALS EXPRESSING INTEREST
Belinda Barrera
Cristina T. Gil
Edward Frank Lewis
Shannon Madden
% OF ATTENDANCE
LAST TERM YEAR
91%
83%
82%
Substitute Teacher, Corpus Christi Independent School
District. Currently attending College. Activities include:
Church. (2- 22 -08)
Homemaker. Attended University of Pennsylvania,
Wharton School of Business, Accounting and Finance and
Undergraduate, Economics, Columbia University.
Activities include: Junior League of Corpus Christi, CASA
Advocate, Padre Island Business Association„ Altar and
Rosary Society, and Padre Island Enrichment Club.
(2/5/08)
Retired, Nueces County Sheriff's Depaituient. Served in
the United States Navy. Received AA in Law
Enforcement and Additional Training from Pensacola
Junior College. Attended Texas Corrections Standards
Academy, Texas Law Enforcement Standards Academy,
Del Mar Community College, Career Academy of
Broadcasting, Atlanta, Georgia, and International School of
Ministry, San Bernardino, California. Activities include:
Republican Precinct Chairman. Recipient of Employee of
the Month Tejas Kia. (3- 28 -08)
Volunteer. Received Associates Degree in Early
Childhood Education from Del Mar College. Activities
include: Chula Vista AFA Elementary PTA, Chairperson
for VIPS, Chess Club, Girl Scouts, and Bible Class
Teacher. (2- 19 -08)
—22—
Judith Prewitt, Ph.D
Donald E. Russell
Patrick Smith
William Strawn
Self - Employed, Prewitt Professional Partnership. Received
B.A. in Mathematics with Physics and Engineering from
Swarthmore College, M.A. in Mathematics from University
of Pennsylvania Graduate School of Arts and Sciences, and
Ph.D. in Mathematics from Uppsala University, Sweden.
Activities include: Currently serves on the Arts and
Cultural Commission, and Society of Sigma Xi Life
Member, Secretary of South Texas Chapter. (9- 15 -08)
President, Negotiations & Contracts Consultants, Inc.
Received BS in Business Administration and Accounting
from University of Kansas, Graduate Work in Information
Systems from The George Washington University and Law
Courses from William Howard Taft University. Activities
include: Management Consultant to Energy Industry,
Licensed Pilot, and Professional Vocalist. Named Buyer of
the Year by Mid - American Minority Business
Development Council (2007). (2- 25 -08)
Programming Consultant, Robbins - Gioia. Received BA in
Applied Sciences from Texas A &M- Commerce. Activities
include: United States Army Reserve and Contractor, Past
Director of Big Brothers Big Sisters, Waco, Texas and Past
President, Active Claremont, Claremont, California. (8 -21-
07)
Traffic Safety Specialist, Texas Department of
Transportation. Received BBA from University of Texas
at Austin, MA from University of Nebraska at Lincoln.
Activities include: Pilot/Observer Coast Guard Auxiliary
and Bay Yacht Club. (9/01/07)
-23-
b. SISTER CITY COMMITTEE — Seven (7) vacancies with terms to 9 -10 and 9 -11.
DUTIES: To study ways and means of improving relations with the Corpus Christi sister
cities and to advise and consult with and assist the Mayor, the City Council, the City
Manager and all other City agencies, boards and officials in accomplishing the purposes
of the Sister City program.
COMPOSITION: It shall consist of a Steering Committee of twenty -one members
and various subcommittees, members who shall be broadly representative of the racial,
religious and ethnic groups in the community. The members shall be appointed by the
City Council and shall serve three -year terms or until their successors are appointed and
qualified. The Steering Committee shall be responsible for the overall administration and
implementation of the City's Sister City program. There shall be a subcommittee for each
sister city authorized by Resolution of the City Council. Members of each such
subcommittee shall be appointed by the Steering Committee plus members from the
community at large as deemed necessary and sufficient by the Steering Committee. Each
subcommittee shall be responsible, under the direction of the Steering Committee, for
primary study, liaison and recommendations for each sister city. The offices of the
committee shall consist of a General Chairman, V- Chairman for each of the Sister City
subcommittees established in accordance with Sec. 2 -152. The Chairman and each vice -
chairman shall be elected by majority vote of the sister city committee annually. If the
General Chairman is absent, a vice - chairman shall be elected from the committee to serve
as General Chairman during his/her absence.
ORIGINAL
MEMBERS TERM APPTD. DATE
Brenda "Brandi" Williams 9 -09 9 -11 -07
Danny Williams 9 -09 9 -11 -07
Randy Farrar 9 -10 6 -11 -02
Janice Garrett 9 -10 5 -13 -08
* * *Sukhbir Singh 9 -08 9 -12 -06
* ** *Farley L. Frazier 9 -10 6 -12 -07
*Rose Gunji 9 -08 11 -08 -05
* * ** *Ellen Murry 9 -08 4 -16 -02
*Phyllis Roseman 9 -08 3 -11 -08
Heather Stanton Moretzsohn 9 -10 9 -14 -04
Guillermo "Willie" Perez 9 -10 1 -16 -07
Westi Hom 9 -10 6 -15 -04
* * ** *Ann Jaime 9 -08 6 -13 -00
Almira Flores 9 -10 9 -12 -06
Tim Dowling 9 -10 7 -10 -07
Melissa Melendez 9 -10 11 -13 -07
*Javier M. Morin 9 -08 7 -10 -07
Drue Combs 9 -09 9 -12 -06
Flicka Rahn 9 -09 6 -15 -04
Kevin Aguilar- Ferrari 9 -09 3 -11 -08
Sharon L. Phillips 9 -09 9 -09 -02
-24-
Legend:
*Seeking reappointment
* *Not seeking reappointment
** *Resigned
* ** *Exceeded number of absences allowed by ordinance
* * ** *Has met six -year service limitation
(Note: The Sister City Committee is recommending the reappointments of Rose Gunji,
Javier M. Morin, and Phyllis Roseman and the new appointments of John Rocha,
Jorge Brenner, Maria Jaramillo, and Dora Hidalgo.)
ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT
NAME
Rose Gunji
Javier Morin
Phyllis Roseman
NO. OF MTGS.
THIS TERM
12
12
6
NO.
PRESENT
11 (lexc)
8
6
OTHER INDIVIDUALS EXPRESSING INTEREST
Karen Anderson
Mary Lou Berven
Jorge Brenner
% OF ATTENDANCE
LAST TERM YEAR
92%
67%
100%
Teacher, Robstown Independent School District. Received
BBA in Finance from Texas State University, San Marcos,
Texas. (9 -8 -08)
Formerly Taught United States History and Westem
Civilization at Wichita State University and Butler
Community College. Received B.A. in Asian Studies from
University of Colorado, Boulder, Colorado and M.A. in
History from Wichita State University, Wichita, Kansas.
Activities include: Phi Alpha Theta and St. Paul's United
Church of Christ. (2- 18 -08)
Research Associate, Texas A &M University- Corpus
Christi. Received Bachelor of Science in Biochemical
Engineering and Master of Science in Environmental
Engineering from Institute Tecnologico y de Estudios
Superiores de Monterrey, Guaymas Campus and Monterrey
Campus, Mexico. Doctoral Program in Marine Sciences
(Ph.D.) from Universitat Politecnica de Catalunya (UPC),
Barcelona, Spain. Activities include: Society for
Conservation GIS, International Society for Environmental
Information Sciences, and Ecological Economics and
Sustainability Science Working Group. Recipient of Cum
Laude Honor for Ph.D. Dissertation. (3 -5 -08)
—25—
Ivonne Cruz
Matthew Demartino
Post - Doctoral Research Associate, Harte Research Institute
for the Gulf of Mexico Studies. Received B.A.
International Relations from UDLA, Mexico and M.A. and
PhD in Sustainability, Tecnology and Humanism.
Activities include: Member of Scientific Associations. (3-
10-08)
Officer/Pilot, United States Navy. Received Bachelor of
Science from Comell University. Currently enrolled in
American Military University, International Relations.
Activities include: Chief of Naval Aviation Training
(CNATRA) Stage Head Manager. (9 -4 -07)
Alexa Denck Retired/Self- Employed, Dental Laboratory. Received AA,
Los Angeles, California. (1- 14 -08)
Vincent E. Doyle
Ryan Evans
Lakendra Fredrickson
A. J. Galvan
Timothy Goss
Engineering Service, Corpus Christi Army Depot.
Received Trade School Vocational Certification. Interested
in serving community. (9- 12 -07)
Aircraft Mechanic, L -3 Vertex Aerospace. United States
Marine Corp Veteran. Attending Del Mar College.
Activities include: Former Vice President of Little Theater
of Crittenden County. (2- 25 -08)
Senior, W. B. Ray High School. Activities include:
Community Theatre, Bay Area Fellowship Day Care,
Loaves and Fishes and Duet Acting. Recipient of UIL Best
Actress and UIL Honorable Mention (Area). (5- 13 -08)
2008 Ray High School . Attending Del Mar College.
Activities include: Community Theater. Recipient of UIL
Best Actor Award, UIL Poetry District Champ, TFA
Humorous State Champ, and Dramatic national Qualifier.
(5- 13 -08)
Registered Representative /Agent, New York Life. Former
Special Agent with United States Anny Intelligence.
Received Associates Degree from Harold Washington
College, BS in Sociology from University of the State of
New York and Master of Public Administration from Troy
University. Attended Japanese Language School — Read,
Writes, and Speaks Japanese. (9 -8 -08)
-26-
Michele Hammock
Dora L. Hidalgo
Maria Jaramillo
Edward Frank Lewis
John Rocha
Bill Shearer
Michael Shooshan
Educational Diagnostician, Tuloso - Midway Independent
School District. Received Bachelor's Degree in Business
from Corpus Christi State University and Master's Degree
in Education from Texas A &M University - Corpus Christi.
(2- 19 -08)
Clinical Record Administrator, MHMR of Nueces County.
Registered Health Information Technician. Received
Technical Degrfee from American Health Information
Management Association. Activities include: President of
Fuerza Comunitaria, Advisory Board Member to the
Institute of Mexicans Abroad (IME), Coastal Bend Health
Information Management Association, Del Mar College
Advisory Board Member, and Treasurer for Federation of
Guadalupanas for the Diocese of Corpus Christi. Received
the Hispanic Women's Network Las Estrellas Award. (5-
6-08)
International Relations Officer, Texas A &M University-
Corpus Christi and World Affairs Council of South Texas.
Received a Bachelor in Business Administration. Speaks
French, Spanish, English, Italian, and Some German. (5-
13-08)
Retired. Received AA from International School of
Minister and Currently Attending South Texas School of
Studies. Activities include. Republican Precinct Chair
Recipient of Tejas Kia Employee of the Month. (3- 28 -08)
President, Go- Logistics. Received BSEE from University
of Nebraska- Lincoln. Former Sister City Committee
Member. (3- 31 -08)
Pastor, The Rock and Salesman, Delta Tire. Attended
Lincoln Technical Institute and Howard Payne University.
Activities include: Freemason. (2- 18 -08)
Self- employed. Received an Associate's degree and
currently pursuing a Bachelor's in Engineering. President
of Oak Park Neighborhood Association and Neighborhood
Watch Program. Participant in Citizen's Police Academy.
(9- 14 -07)
—27—
Corinne Valadez
Jennifer Walden
Kim Wilson
Assistant Professor, Texas A &M University - Corpus
Christi. Received B.S. Interdisciplinary Studies from
Corpus Christi State University, M.S. Curriculum and
Instruction, Texas A &M Corpus Christi, and Ph.D.
Curriculum from Texas A &M. Activities include: Faculty
Advisor, Student Reading Council at Texas A &M
University- Corpus Christi and Children's Book Festival,
Corpus Christi Public Library. (1- 29 -08)
Sales Manager, Apollo Towing/Easy Rider Wrecker.
Received B.A. in Latin American Studies from St.
Edward's University. Former Exchange Student and
Rotary Ambassadorial Scholar. Recipient of Outstanding
Student Award in Latin American Studies. (4- 21 -08)
Received Fashion Merchandising Degree from Wade's
Fashion Merchandising College, Dallas, Texas. Activities
include: New York City LNG Marathon (Walker) and
Working with Goodwill Industries Store in Flour Bluff. (2-
18-08)
—28—
c.
WATERSHORE AND BEACH ADVISORY COMMITTEE — One (1) vacancy with
term to 12 -11 -09 representing the following category: 1 — owner of a hotel or
condominium located on North Padre Island or Mustang Island.
DUTIES: To advise and make recommendations regarding use or preservation of the
following areas within the city limits: the waterfront, the beaches, and the natural bodies
of water including but not limited to Gulf of Mexico, bays, rivers, and creeks, excluding
the Marina area as defined by Section 2 -264.
COMPOSITION: Nine (9) members appointed by the City Council for two -year terms.
The membership shall include one (1) Scientist, i.e. Marine Biologist, one (1) Engineer,
and one (1) Environmentalist; one (1) shall be an owner of a hotel or condominium
located on North Padre Island or Mustang Island; and one (1) shall be a member of the
Corpus Christi Convention & Visitors Bureau. The Chairperson of the Watershore and
Beach Advisory Committee shall act as an advisor to the Park and Recreation Advisory
Committee and vice versa. In the initial appointment members will serve an initial
two -year term, in the succeeding term, 5 members will serve a two -year term, and 4
members will serve a one -year term, as determined by drawing. Thereafter, all
terms will be two-years.
MEMBERS
Joanna Mott (Scientist)
Robert Thomas (Engineer)
Jake Herring (Environmentalist)
** *Linda Walsh (Hotel/Condo Owner)
Kimberly Lemley (CVB)
Neil McQueen
Jim Needham
JoAnn Gilbertson
TERM
12 -11 -09
12 -11 -09
12 -11 -09
12 -11 -09
12 -11 -09
12 -11 -09
12 -11 -09
12 -11 -09
Kyle Garrison 12 -11 -09
Hunter Young, Advisory (Chair of Park and Recreation
INDIVIDUALS EXPRESSING INTEREST
Guy Davis
ORIGINAL
APPTD. DATE
12 -11 -07
12 -11 -07
12 -11 -07
12 -11 -07
12 -11 -07
12 -11 -07
12 -11 -07
12 -11 -07
12 -11 -07
Advisory Committee)
Self - Employed, Realtor. Owner of Condo's on North
Padre Island. Attended Schriner Military Institute,
Kerrville, Texas, Texas A &I Kingsville and University of
Corpus Christi. Received United States Coast Guard
Captains License. Activities include: Island Overlay
Committee and Volunteer at the Animal Rehabilitation
Keep (ARK). (Hotel/Condo Owner)(8- 26 -08)
Legend:
*Seelcing reappointment
* *Not seeking reappointment
** *Resigned
* ** *Exceeded number of absences allowed by ordinance
* * ** *Has met six -year service limitation
—29—
John Fisher
Retired. Vice - President, Fortuna Bay Company, LLC.
Owner of Condo's on North Padre Island. Received B.S.
from Texas A &M University, College Station. Activities
include: President of Padre Island Property Owners
Association and Elder at Zion Lutheran Church. Former
President of Robstown Rotary Club, Northwest Business
Association and Member of National Guard Association of
Texas Board of Directors. (Hotel/Condo Owner) (11 -7 -07)
—30—
3
Requested Council Action: 9/23/08
Alternate Council Date: 9/30/08
AGENDA MEMORANDUM
RECOMMENDATION: Motion approving the purchase of one (1) modular office building from M
Space Holdings, LLC, Houston, Texas in accordance with Bid Invitation No. BI- 0234 -08 based on low
bid for a total amount of $64,990. The modular office building will be purchased for the Health
Department. Funding is available in the 1066 Health Grant Fund.
BACKGROUND:
Purpose:
Bid Invitations
Issued:
Bids Received:
Award Basis:
Funding:
The modular building will be used by the WIC Administration staff. An increase
in caseloads, addition of staff and expected increases in the public's utilization of
services of the WIC Division have contributed to the need for additional office
space.
Seven
Four
Low Bid
1066 Health Grants Fund
550010- 1066 - 00000 - 831308
Michae Barrera
Assistant Director of Financial Services
—33—
$64,990
dfl
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-7 }( §/j
j a0/ a@n
§ 2 }M ƒ32
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-34-
d
4
CITY COUNCIL
AGENDA MEMORANDUM
City Council Action Date: 09/23/2008
AGENDA ITEM:
A. Motion authorizing the City Manager or his designee to accept a grant in the amount of
$73,850 from the U. S. Department of Justice, Bureau of Justice Assistance, for funding
eligible under the FY 2008 Edward Byme Memorial Justice Assistance Grant, 50% of the
funds to be distributed to Nueces County under an established interlocal agreement and to
execute all related documents.
B. Ordinance appropriating $73,850 from the U. S. Department of Justice, Bureau of Justice
Assistance in the No. 1061 Police Grant Fund to purchase law enforcement equipment for
the Police Department and Nueces County.
ISSUE: The Department of Justice provides funding opportunities each year in an effort to reduce
crime and improve public safety through various methods, including the procuring of equipment,
technology, and other material directly related to basic law enforcement functions.
REQUIRED COUNCIL ACTION: Accepting the grant and appropriating the funds
PREVIOUS COUNCIL ACTION: Approval to enter into an interlocal agreement with Nueces County
and permission to submit the grant on 06/18/2006.
FUNDING: There is no match required of the grant. Funds are available for a 4 -year period beginning
10/01/2007 (the first fiscal year of the appropriation)
CONCLUSION AND RECOMMENDATION: Staff recommends accepting the grant and appropriating
the funds.
Bryan P. Smith
Chief of Police
Attachments:
• Award document from U.S. Department of Justice
• Interlocal Agreement with Nueces County
—37—
BACKGROUND INFORMATION
The JAG funds have been received for 4 years; prior to that they were known as the Law
Enforcement Block Grant funds. Since 1999, we have been declared a disparate jurisdiction and
have agreed to split the funds 50/50 with Nueces County; each entity filed an application separately
and handled financial and performance reporting separately. A disparate allocation occurs when a
constituent unit of local govemment is scheduled to receive one and one half times more (four
times more for multiple units of local govemment) than another constituent unit(s), while the other
unit of local govemment bears more than 50% of the costs of prosecution or incarceration that
arise for Part 1 violent crimes reported by the geographically constituent unit(s).
Under the new guidelines, jurisdictions certified as disparate were required to submit a joint
application for the aggregate of funds allocated to them, specifying the amount of the funds to be
distributed to each of the units of local govemment and the purposes for which the funds will be
used. The JAG application process required an interlocal agreement with Nueces County indicating
who would serve as the applicant/fiscal agent for the joint funds. The City and County staff met
and agreed that the City would serve as the lead agency.
JAG funds can be used for state and local initiatives, technical assistance, training, personnel,
equipment, supplies, contractual support, and information systems for criminal justice for any one
or more of the following purpose areas:
• Law enforcement programs • Prosecution and court programs
• Prevention and education programs • Drug treatment programs
• Corrections and community corrections programs
• Planning, evaluation, and technology improvement programs
With this award, the program has provided a total of $3,752,727 in grant funds to the City since the
program began in 1996. The funds have been used to purchase backbone equipment for the Mobil
Data/Automated Vehicle Location project, 27 police package vehicles, 69 unmarked police units, a
property van, SWAT equipment, a bomb suit, digitized radios, radios for the Communications van,
digital cameras, radars, video cameras, personal computer hardware and software, an upgrade to
the computer system and the radio microwave system, a mobile police substation, polygraph
instrument, air packs, SWAT rescue vehicle, and other police equipment.
The Police Department proposes to purchase law enforcement equipment within the Attorney General
Priority areas of gang enforcement/prevention, cybercrime, and intelligence analysis.
Nueces County proposes to utilize their share of the JAG funds to fund a Drug Prosecutor in the
District Attorney's office and other law enforcement equipment.
—38—
Department of Justice
Office of Justice Programs
Bureau of Justice Assistance
Office of Justice Programs Washington. D.C. 20531
September 3, 2008
Mr. George Noe
City of Corpus Christi
1201 Leopard Street, City Hall
P.O. Box 9277
Corpus Christi, TX 78469
Dear Mr. Noe:
On behalf of Attorney General Michael B. Mukasey, it is my pleasure to inform you that the Office of Justice Programs has
approved your application for funding under the FY 08 Edward Byme Memorial Justice Assistance (JAG) Grant Program:
Local Solicitation in the amount of $73,850 for City of Corpus Christi.
Enclosed you will find the Grant Award and Special Conditions documents. This award is subject to all administrative and
financial requirements, including the timely submission of all financial and programmatic reports, resolution of all interim
audit findings, and the maintenance of a minimum level of cash -on -hand. Should you not adhere to these requirements, you
will be in violation of the terms of this agreement and the award will be subject to termination for cause or other administrative
action as appropriate.
If you have questions regarding this award, please contact:
- Program Questions, Esmeralda Womack, Program Manager at (202) 353 -3450; and
- Financial Questions, the Office of the Chief Financial Officer, Customer Service Center (CSC) at
(800) 458 -0786, or you may contact the CSC at ask.ocfo ®usdoj.gov.
Congratulations, and we look forward to working with you.
Sincerely,
I
Domingo S. Herraiz
Director, Bureau of.Justice Assistance
Enclosures
-39-
Department of Justice
Office of Justice Programs
Office for Civil Rights
Washington, D.0 20531
September 3, 2008
Mr. George Noe
City of Corpus Christi
1201 Leopard Street, City Hall
P.O. Box 9277
Corpus Christi, TX 78469
Dear Mr. Noe:
Congratulations on your recent award. In establishing financial assistance programs, Congress linked the receipt of Federal funding to
compliance with Federal civil rights laws. The Office for Civil Rights (OCR), Office of Justice Programs (0JP), U.S. Department of Justice
is responsible for ensuring that recipients of financial aid from OW, its component offices and bureaus, the Office on Violence Against
Women (OVW), and the Office of Community Oriented Policing Services (COPS) comply with applicable Federal civil rights statutes and
regulations. We at OCR are available to help you and your organization meet the civil rights requirements that come with Justice
Department funding.
Ensuring Access to Federally Assisted Programs
As you know, Federal laws prohibit recipients of financial assistance from discriminating on the basis of race, color, national origin,
religion, sex, or disability in funded programs or activities, not only in respect to employment practices but also in the delivery of services or
benefits. Federal law also prohibits funded programs or activities from discriminating on the basis of age in the delivery of services or
benefits.
Providing Services to Limited English Proficiency (LEP) Individuals
In accordance with Department of Justice Guidance pertaining to Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d, recipients of
Federal financial assistance must take reasonable steps to provide meaningful access to their programs and activities for persons with limited
English proficiency (LEP). For more information on the civil rights responsibilities that recipients have in providing language services to
LEP individuals, please see the website at http: / /www.lep.gov.
Ensuring Equal Treatment for Faith -Based Organizations
The Department of Justice has published a regulation specifically pertaining to the funding of faith -based organizations. In general, the
regulation, Participation in Justice Department Programs by Religious Organizations; Providing for Equal Treatment of all Justice
Department Program Participants, and known as the Equal Treatment Regulation 28 C.F.R. part 38, requires State Administering Agencies
to treat these organizations the same as any other applicant or recipient. The regulation prohibits State Administering Agencies from making
award or grant administration decisions on the basis of an organization's religious character or affiliation, religious name, or the religious
composition of its board of directors.
The regulation also prohibits faith -based organizations from using financial assistance from the Department of Justice to fund inherently
religious activities. While faith -based organizations can engage in non -funded inherently religious activities, they must be held separately
from the Department of Justice funded program, and customers or beneficiaries cannot be compelled to participate in them. The Equal
Treatment Regulation also makes clear that organizations participating in programs funded by the Department of Justice are not permitted to
discriminate in the provision of services on the basis of a beneficiary's religion. For more information on the regulation, please see OCR's
website at http: / /www .ojp.usdoj.gov /ocr /etfbo.htm.
State Administering Agencies and faith -based organizations should also note that the Safe Streets Act, as amended; the Victims of Crime
Act, as amended; and the Juvenile Justice and Delinquency Prevention Act, as amended, contain prohibitions against discrimination on the
basis of religion in employment. Despite these nondiscrimination provisions, the Justice Department has concluded that the Religious
Freedom Restoration Act (RFRA) is reasonably construed, on a case -by -case basis, to require that its funding agencies permit faith -based
organizations applying for funding under the applicable program statutes both to receive DOJ funds and to continue considering religion
when hiring staff, even if the statute that authorizes the funding program generally forbids considering of religion in employment decisions
by grantees.
Questions about the regulation or the application of RFRA to the statutes that prohibit discrimination in employment may be directed to this
Office.
-40-
Enforcing Civil Rights Laws
All recipients of Federal financial assistance, regardless of the particular funding source, the amount of the grant award, or the number of
employees in the workforce, are subject to the prohibitions against unlawful discrimination. Accordingly, OCR investigates recipients that
are the subject of discrimination complaints from both individuals and groups. In addition, based on regulatory criteria, OCR selects a
number of recipients each year for compliance reviews, audits that require recipients to submit data showing that they are providing services
equitably to all segments of their service population and that their employment practices meet equal employment opportunity standards.
Complying with the Safe Streets Act or Program Requirements
In addition to these general prohibitions, an organization which is a recipient of financial assistance subject to the nondiscrimination
provisions of the Omnibus Crime Control and Safe Streets Act (Safe Streets Act) of 1968, 42 U.S.C. § 3789d(c), or other Federal grant
program requirements, must meet two additional requirements:(1) complying with Federal regulations pertaining to the development of an
Equal Employment Opportunity Plan (ESOP), 28 C.F.R. § 42.301 -.308, and (2) submitting to OCR Findings of Discrimination (see 28
C.F.R. §§ 42.205(5) or 31.202(5)).
1) Meeting the EEOP Requirement
In accordance with Federal regulations, Assurance No. 6 in the Standard Assurances, COPS Assurance No. 8.B, or certain Federal grant
program requirements, your organization must comply with the following EEOP reporting requirements:
If your organization has received an award for $500,000 or more and has 50 or more employees (counting both full- and part-time
employees but excluding political appointees), then it has to prepare an EEOP and submit it to OCR for review within 60 days from the
date of this letter. For assistance in developing an EEOP, please consult OCR's website at http: / /www.ojp.usdoj.gov /ocr / eeop.htm. You
may also request technical assistance from an EEOP specialist at OCR by dialing (202) 616 -3208.
If your organization received an award between $25,000 and $500,000 and has 50 or more employees, your organization still has to prepare
an EEOP, but it does not have to submit the ESOP to OCR for review. Instead, your organization has to maintain the EEOP on file and
make it available for review on request. In addition, your organization has to complete Section B of the Certification Form and return it to
OCR. The Certification Form can be found at http: / /www.ojp.usdoj.gov /ocr /eeop.htm.
If your organization received an award for less than $25,000; or if your organization has less than 50 employees, regardless of the amount of
the award; or if your organization is a medical institution, educational institution, nonprofit organization or Indian tribe, then your
organization is exempt from the EEOP requirement. However, your organization must complete Section A of the Certification Form and
return it to OCR. The Certification Form can be found at http: / /www.ojp.usdoj.gov /ocr / eeop.htm.
2) Submitting Findings of Discrimination
In the event a Federal or State court or Federal or State administrative agency makes an adverse finding of discrimination against your
organization after a due process hearing, on the ground of race, color, religion, national origin, or sex, your organization must submit a copy
of the finding to OCR for review.
Ensuring the Compliance of Subrecipients
If your organization makes subawards to other agencies, you are responsible for assuring that subrecipients also comply with all of the
applicable Federal civil rights laws, including the requirements pertaining to developing and submitting an EEOP, reporting Findings of
Discrimination, and providing language services to LEP persons. State agencies that make subawards must have in place standard grant
assurances and review procedures to demonstrate that they are effectively monitoring the civil rights compliance of subrecipients.
If we can assist you in any way in fulfilling your civil rights responsibilities as a recipient of Federal funding, please call OCR at (202) 307-
0690 or visit our website at http: / /www.ojp.usdoj.gov /ocr /.
cc: Grant Manager
Financial Analyst
Sincerely,
Michael L. Alston
Director
-41-
Department of Justice
Office of Justice Programs
Bureau of Justice Assistance
v
Grant
PAGE 1 OF 4
1. RECIPIENT NAME AND ADDRESS (Including Zip Code)
City of Corpus Christi
1201 Leopard Street, City Hall P.O. Box 9277
Corpus Christi, TX 78469
4. AWARD NUMBER: 2008 -DJ -BX -0642
5. PROJECT PERIOD: FROM 10/01/2007 TO 09/30/2011
BUDGET PERIOD: FROM 10/012007 TO 09/30/2011
6. AWARD DATE 09/03/2008
7. ACTION
Initial
IA. GRANTEE IRS/VENDOR NO.
746000576
8. SUPPLEMENT NUMBER
00
9. PREVIOUS AWARD AMOUNT 50
3. PROJECT TITLE
Purchase of Law Enforcement Equipment and Enhancing Prosecution Efforts
Project
10. AMOUNT OF THIS AWARD 573,850
11. TOTAL AWARD 5 73,850
12. SPECIAL CONDITIONS
THE ABOVE GRANT PROJECT IS APPROVED SUBJECT TO SUCH CONDITIONS OR LIMITATIONS AS ARE SET FORTH
ON THE ATTACHED PAGE(S).
13. STATUTORY AUTHORITY FOR GRANT
This project is supported under 42 U.S.C. 3751(a) (BJA - JAG Formula)
15. METHOD OF PAYMENT
PAPRS
AGENCY APPROVAL
GRANTEE ACCEPTANCE
18. TYPED NAME AND
� TITLE OF AUTHORIZED GRANTEE OFFICIAL
Cww.gadioe / rnG1�e,I )cobct `-J -' `�^�yp�1��
� °eeer J-r'1 `t Ewa. i� 'Y 4
16. TYPED NAME AND TITLE OF APPROVING OFFICIAL
Domingo S. Herraiz
Director, Bureau ofJustice Assistance
17. SIGNATURE OF APPROVING OFFICIAL
19. SIGNATURE OF AUTHORIZED RECIPIENT OFFICIAL
19A. DATE
tt
AGENCY USE ONLY
20. ACCOUNTING CLASSIFICATION CODES
FISCAL FUND BUD. DIV.
YEAR CODE ACT. OFC. REG. SUB. POMS AMOUNT
X B DI 80 00 00 73850
1 21. HDJUGT0620
OW FORM 4000/2 (REV. 5 -87) PREVIOUS EDITIONS ARE OBSOLETE.
OJP FORM 40002 (REV. 4-88)
-42-
Department of Justice
Office of Justice Programs
Bureau of Justice Assistance
AWARD CONTINUATION
SHEET
Grant
PAGE 2 OF 4
PROJECT NUMBER 2008 -DJ -BX -0642 AWARD DATE 09/03/2008
SPECIAL CONDITIONS
1. The recipient agrees to comply with the financial and administrative requirements set forth in the current edition of the
Office of Justice Programs (0JP) Financial Guide.
2. The recipient acknowledges that failure to submit an acceptable Equal Employment Opportunity Plan (if recipient is
required to submit one pursuant to 28 C.F.R. Section 42.302), that is approved by the Office for Civil Rights, is a
violation of its Certified Assurances and may result in suspension or termination of funding, until such time as the
recipient is in compliance.
3. The recipient agrees to comply with the organizational audit requirements of OMB Circular A -133, Audits of States,
Local Governments, and Non -Profit Organizations, as further described in the current edition of the OJP Financial
Guide, Chapter 19.
4. Recipient understands and agrees that it cannot use any federal funds, either directly or indirectly, in support of the
enactment, repeal, modification or adoption of any law, regulation or policy, at any level of government, without the
express prior written approval of OJP.
5. The grantee agrees to assist BSA in complying with the National Environmental Policy Act (NEPA) and other related
federal environmental impact analyses requirements in the use of these grant funds, either directly by the grantee or by
a subgrantee. Accordingly, prior to obligating grant funds, the grantee agrees to first determine if any of the following
activities will be related to the use of the grant funds.
The grantee understands that this special condition applies to its following new activities whether or not they are being
specifically funded with these grant funds. That is, as long as the activity is being conducted by the grantee, a
subgrantee, or any third party and the activity needs to be undertaken in order to use these grant funds, this special
condition must first be met. The activities covered by this special condition are:
a. New construction;
b. Minor renovation or remodeling of a property either (a) listed on or eligible for listing on the National Register of
Historic Places or (b) located within a 100 -year flood plain;
c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change in its basic
prior use or (b) significantly change its size; and,
d. Implementation of a new program involving the use of chemicals other than chemicals that are (a) purchased as an
incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or
education environments.
Application of This Special Condition to Grantee's Existing Programs or Activities: For any of the grantee's or its
subgrantees' existing programs or activities that will be funded by these grant funds, the grantee, upon specific request
from BJA, agrees to cooperate with BJA in any preparation by BJA of a national or program environmental assessment
of that funded program or activity.
OJP FORM 4000/2 (REV. 4-88)
-43-
Department of Justice
Office of Justice Programs
Bureau of Justice Assistance
AWARD CONTINUATION
SHEET
Grant
PAGE 3 OF 4
PROJECT NUMBER 2008- DJ- BX-0642 AWARD DATE 09 /032008
SPECIAL CONDITIONS
6. This special condition facilitates compliance with the provisions of the National Environmental Policy Act (NEPA)
relating to clandestine methamphetamine laboratory operations, including the identification, seizure, or closure of
clandestine methamphetamine laboratories [hereinafter, "meth lab operations"). No monies from this award may be
obligated to support meth lab operations unless the grantee implements this special condition.
The Office of Justice Programs (OW), in consultation with the Bureau of Justice Assistance, the Drug Enforcement
Administration, and the Office for Community Oriented Policing Services, prepared a Program -level Environmental
Assessment (Assessment) governing meth lab operations. The Assessment describes the adverse environmental,
health, and safety impacts likely to be encountered by law enforcement agencies as they implement specific actions
under their methamphetamine laboratory operations. Consistent with the Assessment, the following terms and
conditions shall apply to the grantee for any OW funded methlab operations:
A. The grantee shall ensure compliance by OJP funded sub - grantees with federal, state, and local environmental,
health, and safety laws and regulations applicable to meth lab operations, to include the disposal of the chemicals,
equipment, and wastes resulting from those operations.
B. The grantee shall have a Mitigation Plan in place that identifies and documents the processes and points of
accountability within its state. This plan will be used to ensure that the adverse environmental, health, and safety
impacts delineated in the Assessment are mitigated in a manner consistent with the requirements of this condition.
C. The grantee shall monitor OW funded meth lab operations to ensure that they comply with the following nine
mitigation measures identified in the Assessment and whose implementation is addressed in the grantee's Mitigation
Plan. These mitigation measures must be included as special conditions in all subgrants: (See Part Il of this special
condition)
7. 1. Provide medical screening of personnel assigned or to be assigned by the grantee to the seizure or closure of
clandestine methamphetamine laboratories;
2. Provide Occupational Safety and Health Administration (OSHA) required initial and refresher training for law
enforcement officials and all other personnel assigned to either the seizure or closure of clandestine methamphetamine
laboratories;
3. As determined by their specified duties, equip the personnel with OSHA required protective wear and other required
safety equipment;
4. Assign properly trained personnel to prepare a comprehensive contamination report on each seized/closed
laboratory;
5. Utilize qualified disposal personnel to remove all chemicals and associated glassware, equipment, and contaminated
materials and wastes from the site(s) of each seized laboratory;
6. Dispose of the chemicals, equipment, and contaminated materials and wastes at properly licensed disposal facilities
or, when allowable, at properly licensed recycling facilities;
7. Monitor the transport, disposal, and recycling components of subparagraphs numbered 5. and 6. immediately above
in order to ensure proper compliance;
8. Have in place and implement a written agreement with the responsible state environmental agency. This agreement
must provide that the responsible state environmental agency agrees to (i) timely evaluate the environmental condition
at and around the site of a closed clandestine laboratory and (ii) coordinate with the responsible party, property owner,
or others to ensure that any residual contamination is remediated, if determined necessary by the state environmental
agency and in accordance with existing state and federal requirements; and
9. Have in place and implement a written agreement with the responsible state or local service agencies to properly
respond to any minor, as defined by state law, at the site. This agreement must ensure immediate response by qualified
personnel who can (i) respond to the potential health needs of any minor at the site; (ii) take that minor into protective
custody unless the minor is criminally involved in the meth lab activities or is subject to arrest for other criminal
violations; (iii) ensure immediate medical testing for methamphetamine toxicity; and (iv) arrange for any follow -up
medical tests, examinations, or health care made necessary as a result of methamphetamine toxicity.
O/P FORM 40002 (REV. 4-88)
-44-
Department of Justice
Office of Justice Programs
Bureau of Justice Assistance
AWARD CONTINUATION
SHEET
Grant
PAGE 4 OF 4
PROJECT NUMBER 2008 -DI -BX -0642 AWARD DATE 09/03/2008
SPECIAL CONDITIONS
8. The recipient is required to establish a trust fund account. (The trust fund may or may not be an interest - bearing
account.) The fund may not be used to pay debts incurred by other activities beyond the scope of the Edward Byme
Memorial Justice Assistance Grant Program (JAG). The recipient also agrees to obligate and expend the grant funds in
the trust fund (including any interest earned) during the period of the grant. Grant funds (including any interest earned)
not expended by the end of the grant period must be retumed to the Bureau of Justice Assistance no later than 90 days
after the end of the grant period, along with the final submission of the Financial Status Report (SF -269).
9. The grantee agrees to comply with all reporting, data collection and evaluation requirements, as prescribed by the BJA
in the program guidance for the Justice Assistance Grant (JAG). Compliance with these requirements will be
monitored by BJA.
10. The recipient agrees that any information technology system funded or supported by 011' funds will comply with 28
C.F.R. Part 23, Criminal Intelligence Systems Operating Policies, if OP determines this regulation to be applicable.
Should OJP determine 28 C.F.R. Part 23 to be applicable, OJP may, at its discretion, perform audits of the system, as
per 28 C.F.R. 23.20(g). Should any violation of 28 C.F.R. Part 23 occur, the recipient may be fined as per 42 U.S.C.
3789g(c) -(d). Recipient may not satisfy such a fine with federal funds.
11. The recipient agrees to ensure that the State Information Technology Point of Contact receives written notification
regarding any information technology project funded by this grant during the obligation and expenditure period. This is
to facilitate communication among local and state govemmental entities regarding various information technology
projects being conducted with these grant funds. In addition, the recipient agrees to maintain an administrative file
documenting the meeting of this requirement. For a list of State Information Technology Points of Contact, go to
http:// www .ojp.usdoj.gov /ec/states.htm.
12. To avoid duplicating existing networks or IT systems in any initiatives funded by BJA for law enforcement information
sharing systems which involve interstate connectivity between jurisdiction, such systems shall employ, to the extent
possible, existing networks as the communication backbone to achieve interstate connectivity, unless the grantee can
demonstrate to the satisfaction of BJA that this requirement would not be cost effective or would impair the
functionality of an existing or proposed IT system.
13. The grantee agrees to comply with the applicable requirements of 28 C.F.R. Part 38, the Department of Justice
regulation governing "Equal Treatment for Faith Based Organizations" (the "Equal Treatment Regulation"). The Equal
Treatment Regulation provides in part that Department of Justice grant awards of direct funding may not be used to
fund any inherently religious activities, such as worship, religious instruction, or proselytization. Recipients of direct
grants may still engage in inherently religious activities, but such activities must be separate in time or place from the
Department of Justice funded program, and participation in such activities by individuals receiving services from the
grantee or a sub - grantee must be voluntary. The Equal Treatment Regulation also makes clear that organizations
participating in programs directly funded by the Department of Justice are not permitted to discriminate in the provision
of services on the basis of a beneficiary's religion.
OJP FORM 4000/2 (REV. 4-88)
-45-
Department of Justice
Office of Justice Programs
Bureau of Justice Assistance
Washington. D.C. 20531
Memorandum To: Official Grant File
From: Maria Berry, Environmental Coordinator
Subject: Incorporates NEPA Compliance in Further Developmental Stages for City of Corpus
Christi
All grants funded under the Edward Byrne Memorial Justice Assistance Grant Program (JAG) will carry
the following NEPA special condition:
1) The grantee agrees to assist BJA in complying with the National Environmental Policy Act (NEPA)
and other related federal environmental impact analyses requirements in the use of these grant funds,
either directly by the grantee or by a subgrantee. Accordingly, prior to obligating grant funds, the grantee
agrees to first determine if any of the following activities will be related to the use of the grant funds. The
grantee understands that this special condition applies to its following new activities whether or not they
are being specifically funded with these grant funds. That is, as long as the activity is being conducted by
the grantee, a subgrantee, or any third party and the activity needs to be undertaken in order to use these
grant funds, this special condition must first be met. The activities covered by this special condition are:
a. New construction;
b. Minor renovation or remodeling of a property either (a) listed on or eligible for listing on the National
Register of Historic Places or (b) located within a 100 -year flood plain;
c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change
in its basic prior use or (b) significantly change its size; and,
d. Implementation of a new program involving the use of chemicals other than chemicals that are (a)
purchased as an incidental component of a funded activity and (b) traditionally used, for example, in
office, household, recreational, or education environments.
Application of this special condition to grantee's existing programs or activities: For any of the grantee's
or its subgrantees' existing programs or activities that will be funded by these grant funds, the grantee,
upon specific request from BJA, agrees to cooperate with BJA in any preparation by BJA of a national or
program environmental assessment of that funded program or activity.
-46-
..l Department of justice
Office ofJustice Programs
:
3
3 Bureau of Justice Assistance
GRANT MANAGER'S MEMORANDUM, PT. I:
PROJECT SUMMARY
Grant
PROJECT NUMBER
2008 -D1 -BX -0642
PAGE 1 OF 1
This project is supported under 42 U.S.C. 3751(a) (BJA - JAG Formula)
I. STAFF CONTACT (Name & telephone number)
Esmeralda Womack
(202) 353 -3450
2. PROJECT DIRECTOR (Name, address & telephone number)
Pat Eldridge
Police Administration Manager
P. 0.Box 9016
Corpus Christi, TX 78469 -9016
(361) 886 -2696
3a. TITLE OF THE PROGRAM
BJA FY 08 Edward Byrne Memorial Justice Assistance Grant Program: Local Solicitation
3b. POMS CODE (SEE INSTRUCTIONS
ON REVERSE)
4. TITLE OF PROJECT
Purchase of Law Enforcement Equipment and Enhancing Prosecution Efforts Project
5. NAME & ADDRESS OF GRANTEE
City of Corpus Christi
1201 Leopard Street, City Hall P.0. Box 9277
Corpus Christi, TX 78469
6. NAME & ADRESS OF SUBGRANTEE
7. PROGRAM PERIOD
FROM: 10/01/2007 TO: 09/30/2011
8. BUDGET PERIOD
FROM: 10/01/2007 TO: 09/30/2011
9. AMOUNT OF AWARD
S 73,850
10. DATE OF AWARD
09/03/2008
11. SECOND YEAR'S BUDGET
12. SECOND YEAR'S BUDGET AMOUNT
13. THIRD YEAR'S BUDGET PERIOD
14. THIRD YEAR'S BUDGET AMOUNT
15. SUMMARY DESCRIPTION OF PROJECT (See instruction on reverse)
The Edward Byme Memorial Justice Assistance Grant Program (JAG) allows states, tribes, and local governments to support a broad range of activities to prevent
and control crime based on their own local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel,
equipment, supplies, contractual support, and information systems for criminal justice for any one or more of the following purpose areas: 1) law enforcement
programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment
programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs (other than compensation).
OJP FORM 4000/2 (REV. 4 -88)
-47-
The disparate jurisdictions of the city of Corpus Christi and the county of Nueces will use their Fiscal Year 2008 JAG award in the amount of
573,850 to purchase law enforcement equipment and to hire a drug prosecutor. The city of Corpus Christi will use their portion of the JAG award
(536,925) to provide training, and will purchase ammunition for the establishment ofa patrol rifle program that will train officers in active shooter
situations. Officers who wish to participate in the new patrol rifle program are required to purchase their own AR -15 rifle. The county of Nueces
will use their portion of JAG funds (536,925) to purchase body armor for the Sheriff's Deparbnent and will support the salary and benefits for a
Drug Prosecutor position in the Nueces County District Attomey's Office. The Drug Prosecutor will prosecute drug cases, review pertinent case
law and statutes, participate in the diversion court, and monitor inmates in jail on related drug cases.
NCAMCF
-48-
GMS APPLICATION NUMBER
THE STATE OF TEXAS
KNOW ALL BY THESE PRESENT
COUNTY OF NUECES
INTERLOCAL AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI, TEXAS AND COUNTY OF
NUECES, TEXAS
2008 BYRNE JUSTICE ASSISTANCE GRANT (JAG) PROGRAM AWARD
This agreement is made and entered into this 18th day of June, 2008, by and
between the COUNTY of NUECES, acting by and through its goveming body,
the Commissioners Court, hereinafter referred to as COUNTY, and the CITY of
CORPUS CHRISTI, acting by and through its goveming body, the City Council,
hereinafter referred to as CITY, both of Nueces County, State of Texas,
witnesseth:
WHEREAS, this Agreement is made under the authority of Section 791.011(a),
Government Code: and
WHEREAS, each goveming body, in performing governmental functions or in
paying for the performance of govemmental functions hereunder, shall make that
performance or those payments from current revenues legally available to that
party: and
WHEREAS, each goveming body finds that the performance of this Agreement
is in the best interests of both parties, that the undertaking will benefit the public,
and that the division of costs fairly compensates the performing party for the
services or functions under this agreement: and
WHEREAS, the CITY agrees to provide the COUNTY fifty percent (50 %) of all
funds received from the JAG award: and
WHEREAS, the CITY and COUNTY believe it to be in their best interests to
reallocate the JAG funds.
-49-
GMS APPLICATION NUMBER
NOW THEREFORE, the COUNTY and CITY agree as follows:
Section 1.
CITY agrees to pay COUNTY a total of fifty percent (50 %) of JAG funds received
from this award.
Section 2.
COUNTY agrees to use the fifty percent (50 %) of JAG funds received from CITY
under this agreement for the enhancement of law enforcement during its 2008-
2009 fiscal year.
Section 3.
Nothing in the performance of this Agreement shall impose any liability for claims
against COUNTY other than claims for which liability may be imposed by the
Texas Tort Claims Act.
Section 4.
Nothing in the performance of this Agreement shall impose any liability for claims
against CITY other than claims for which liability may be imposed by the Texas
Tort Claims Act.
Section 5.
Each party to this Agreement will be responsible for its own actions in providing
services under this Agreement and shall not be liable for any civil liability that
may arise from the furnishing of the services by the other party.
Section 6.
The parties to this Agreement do not intend for any third party to obtain a right by
virtue of this Agreement.
Section 7.
By entering into this Agreement, the parties do not intend to create any
obligations, express or implied, other than those set out herein. Further, this
Agreement shall not create any rights in any party not a signatory hereto.
—50—
GMS APPLICATION NUMBER
CITY OF CORPUS CHRISTI COUNTY OF NUE ES
Gborge K. Noe
City Manager
ATTEST:
Armando Chapa
City Secretary
APPROVED AS TO FORM:
Jose Hamey
Assistant City Atfdmey County Attorney
Samuel L. ' eal, Jr.
County Judge
ULLA VAA
County -Die* be.Th,,,liGem
a9AUTHUKI[t;
BY Comm ...62.4 11.2.
SECRETARY me.
-51-
ORDINANCE
APPROPRIATING $73,850 FROM THE U.S. DEPARTMENT OF
JUSTICE, BUREAU OF JUSTICE ASSISTANCE IN THE NO. 1061
POLICE GRANT FUND TO PURCHASE LAW ENFORCEMENT
EQUIPMENT FOR THE POLICE DEPARTMENT AND NUECES
COUNTY; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That $73,850 from the U.S. department of Justice, Bureau of Justice
Assistance is appropriated in the No. 1061 Police Grants Fund to purchase law
enforcement equipment for the Police Department and Nueces County.
SECTION 2. That upon written request of the Mayor or five Council Members, the
City Council (1) finds and declares an emergency due to the need for immediate
action for the efficient and effective administration of City affairs; and, (2) suspends
that Charter rule which requires an ordinance to be considered and voted upon at two
regular meetings, so that this ordinance is passed and takes effect as an emergency
measure upon its first reading on this the 23rd of September, 2008.
ATTEST: THE CITY OF CORPUS CHRISTI
Armando Chapa, City Secretary Henry Garrett, Mayor
Approved as to form l ea L/N,4ivr y, 2008
Joseph Herne
Assistant City Attorney
For City Attorney
-52-
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the attached ordinance, an
emergency exists requiring suspension of that Charter rule which requires an
ordinance to be considered and voted upon at two regular meetings. Therefore, 1/we
request that you suspend said Charter rule and finally pass this ordinance on the date
of its introduction, or at the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
Henry Garrett
Mayor, City of Corpus Christi
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
—53—
5
CITY COUNCIL.
AGENDA MEMORANDUM
City Council Action Date: September 23, 2008
AGENDA ITEM:
A. Resolution authorizing the City manager or his designee to execute all documents necessary to
accept a $220,000 grant from the Texas Department of Agriculture Child and Adult Care Food
Program to provide after school snacks to youth enrolled in after school programs for FY 2008-
2009.
B. Ordinance appropriating a grant in the amount of $220,000 from the Texas Department of
Agriculture in the No. 1067 Parks and Recreation Grants Fund to operate the Child and Adult
Care Food Program; and declaring an emergency.
C. Resolution authorizing the City Manager or designee to execute an Interlocal Cooperation
Agreement with the Corpus Christi Independent School District for the After School Snack — Child
and Adult Care Food Program.
ISSUE: In order to provide after school supplements (snacks) for the after school enrichment
programs at the Latchkey sites, the City Council must A) appropriate $220,000 in grant funds
from the Texas Department of Agriculture to operate the Child and Adult Care food program for
youth enrolled in after school enrichment programs B) approve and execute an Interlocal
Cooperation Agreement with CCISD for the preparation and delivery of snacks to the sites
approved by the Child and Adult Care Food Program. This program requires no city matching
funds for qualifying sites.
REQUIRED COUNCIL ACTION: Action is required to accept and appropriate grant funds and
authorize the City Manager, or his designee, to execute all related contracts and documents for
the FY 08 -09 Child and Adult Care Food Program for youth enrolled in after school enrichment
programs.
PREVIOUS COUNCIL ACTION: The City Council has for thirteen (13) years approved a
similar youth nutrition grant related to the Summer Recreation Programs. In addition, the City
Council has also approved the Child and Adult Care Food Program grant for the past six school
years.
FUNDING: U.S. Department of Agriculture, and Texas Department of Agriculture grant funds.
CONCLUSION AND RECOMMENDATION: Staff recommends the City Council appropriate
the Child and Adult Care Food Program grant with Texas Department of Agriculture and
approve the Interlocal Cooperation Agreement with Corpus Christi Independent School District
(CCISD).
Attachments:
Background Information El
Award Letter
Ordinance /Resolution
Contract Summary
-57-
Sa ly Gav� '
Parks an'7 Recreation Department
Directo
BACKGROUND INFORMATION
The U.S. Department of Agriculture (USDA) through the Texas Department of Agriculture (TDA)
provides grants for youth nutrition as a continuation of the National School Lunch Program. This
program is called the Child and Adult Care Food Program (CACFP) for after school educational and /or
enrichment activities. In order to qualify for this program, a site must:
a) provide youth with regularly scheduled activities in an organized, structured and
supervised environment,
b) include educational and /or enrichment activities as part of the programming,
c) be located in an area served by a school where 50% or more of the youth enrolled are
eligible for free or reduced price school meals.
The Parks and Recreation Department has a total of 23 Latchkey sites that qualify for meal service
based on eligibility (Agenda Item A). Sites to be served are: Casa Linda Elementary, Fannin
Elementary, Houston Elementary, Meadowbrook Elementary, Menger Elementary, Carroll Lane
Elementary, Central Park Elementary, Galvan Elementary, Kostoryz Elementary, Moore Elementary,
Sanders Elementary, Smith Elementary, Yeager Elementary, Calk Elementary, Chula Vista
Elementary , Crocket Elementary, Los Encinos Elementary, Montclair Elementary, Oak Park
Elementary, Schanen Elementary, Wilson Elementary, Prescott Elementary, and Woodlawn
Elementary.
There are 8 sites that do not qualify for this program based on enrollment of youth eligible for free and
reduced school meals. These sites are: Bames Elementary, Dawson Elementary, Mireles
Elementary, Jones Elementary, Windsor Park Elementary, Webb Elementary, Early Childhood
Development Center, and Club Estates Elementary.
Over the past few years, the City and CCISD have entered into local interagency agreements for the
preparation and delivery of meals to the sites with the Summer Food Service Program. The City again
proposes to enter into a contract with CCISD to prepare and deliver snacks at a rate of $.65 per snack
for the school year beginning October 1, 2008 - June 3, 2009. CCISD will also maintain and provide
menu preparation records. The snack consists of fruit/vegetable, milk/juice and dessert. It is
estimated that approximately 2,800 youth per program day will be served after school snacks. At each
site, city staff will verify daily snack counts and distribute snacks to youth. Total program costs are to
be provided by the State's reimbursement. No City funds will be utilized for this program, but an
ordinance is necessary to appropriate the grant of $220,000 in order to implement the program.
CCISD has approved the food service agreement.
—58—
TEXAS DEPARTMENT OF AGRICULTe
TODD STAPLES
COMMISSIONER
'"9 ,
J11 7/ir
��'I:07
July 21, 2008
To: Child and Adult Care Food Program — Child Care Centers Current Contractor
Re: Application for Renewal — Program Year 2009 (October 1, 2008 — September 30, 2009)
Dear Contractor:
This application packet includes the forms and information on additional requirements needed to
renew your participation in the Child and Adult Care Food Program (CACFP) — Child Care
Centers (CCC) for Program Year (PY) 2009. CACFP regulations require that current contractors
submit a renewal application every three years. In between renewal applications you will be
required to submit information to update your files.
Review the content of the documents included in the renewal packet carefully. Due to the
transfer of the Child Nutrition Programs from the Texas Health and Human Services
Commission (HHSC) to the Texas Department of Agriculture (TDA) on October 1, 2007, you
will be required to sign a new permanent agreement with TDA Food and Nutrition Division
(FND).
Attachment #2 of this renewal packet lists the forms and documents that must be completed and
submitted to continue participation. All spaces for responses on the forms must be completed.
You should enter "N /A" to appropriately respond to areas that are not applicable to your
program Providing false information on the renewal will result in placing your organization and
the person(s) responsible for the false information into the CACFP Serious Deficiency Process.
Failure to permanently correct the serious deficiency could ultimately result in the denial of your
renewal, termination of your permanent FND Agreement and placement of your organization
and responsible individuals on the National Disqualified List.
In order to facilitate the renewal process the following items can be carried forward from your
PY2007/PY2008 contract file:
• Proof of tax exempt status, if your organization is non - profit tax exempt;
• Food Service Management Company Agreement, if you subcontract for meal preparation;
• Ten day cycle menu for each meal type you will be claiming;
• Articles of Incorporation or Assumed Name Certificate;
P.O. Box 12847 Austin, Texas 78711 (512) 463 -7476 Fax: (888) 223 -8861
For the Hearing Impaired: (800) 735 -2988
www.tda.state.tx.us
—59—
CACFP CCC Current Contractor — Program Year 2009
Page 2
• All subcontractor and /consultant agreements; and
• Altercate CACFP forms developed by your organization and approved by FND.
Note: If any of the information in the items listed above has changed or will change for PY2009,
a copy of the new information must be submitted with the PY2009 renewal. Verification of all
renwal information, will be part of your next administrative review.
As you complete your application it is important to understand that although you may
subcontract for certain functions necessary for the management of the program, you must accept
final administrative and financial responsibility for your program and you may not "contract out
for the management of the program ".
For - profit organizations that receive $500,000 or more in CACFP funds during the program year
are required to obtain a program specific audit of the organization's CACFP operations. FND
will reimburse your organization for the cost of obtaining the program specific audit based on the
availability of funds. Note: Do not include the audit cost in your budget.
Non profit organizations that expend more than $500,000 in federal funds in a fiscal year are
required to obtain a single audit. Separate funds are used to reimburse the audit costs of
organizations that expend more than $500,000 in federal funds in their fiscal year. Do not
include the cost of your audit in the budget submitted with this application. Although we cannot
guarantee reimbursement, it is expected there will be adequate funds to reimburse the CACFP
portion of audit expenses for all non profit contractors required to obtain a single audit. Note:
Contracting organizations that expend less than $500,000 in federal funds in a fiscal year are not
required to obtain a single audit and therefore will not be reimbursed if an audit is obtained.
In order for your renewal to be approved it must:
• contain all the required items;
• be complete and correct, and
• demonstrate your financial viability, management capability, and internal controls for
accountability.
Failure to submit complete and correct renewal forms and documents in accordance with
program requirements will result in your renewal being returned for correction and may delay the
receipt of reimbursement. Please contact the designated F &N FOO specified on Attachment #1
should you have questions about the CACFP, the forms enclosed, or the documents required.
Contractors approved for advance funding in Program Year 2009 will be paid based on the
availability of funds. Funds will not be available for October 2008 and September 2009
advances. In order to ensure the receipt of your advance after October 2008, contact your F &N
FOO to determine when the complete and accurate renewal must be received.
To avoid TDA initiating termination procedures, please submit your complete and correct
renewal, with supporting documentation, to your F &N FOO no later than August 25, 2008.
Contractors approved for advances will be paid based on the availability of federal funds.
—60—
CACFP CCC Current Contractor — Program Year 2009
Page 3
Contact your F &N FOO if you have questions about the CACFP, the renewal forms or
documents required. Visit our Texas Department of Agriculture (TDA) website at
www.snptexas.org, select "Continue to SNPTexas.org" for additional information on the CACFP
CCC or to download additional forms.
Enclosures
—61—
Page 1 of 2
A RESOLUTION
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE
ALL DOCUMENTS NECESSARY TO ACCEPT A $220,000 GRANT
FROM THE TEXAS DEPARTMENT OF AGRICULTURE TO PROVIDE
AFTER SCHOOL SNACKS TO YOUTH ENROLLED IN AFTER SCHOOL
PROGRAMS FOR FY 2008 -2009.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, THAT:
SECTION 1. The City Manager or designee is authorized to accept a $220,000 grant
from the Texas Department of Agriculture to provide after school snacks to youth
enrolled in after school programs for FY 2008 -2009.
SECTION 2. This Resolution shall take effect and be in full force immediately after its
adoption by the City Council.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa, City Secretary Henry Garrett, Mayor
APPROVED: .fix • 2:7 , 2008
�, zsg -i
Lisa ilartr, )
Senior Assistant City Attorney
For City Attorney
H: \LEG- DIR\Lisa\2008 Resolutions\ RES- authGrant- AfterSchGCe2tksFY08- 09.doc
Page 2 of 2
Corpus Christi, Texas
Day 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
Mike McCutchon
H:\LEG- DIR\Lisa\2008 Resolutions lRES- authGrant- AfterSchool elisFY08- 09.doe
ORDINANCE
APPROPRIATING A GRANT IN THE AMOUNT OF $220,000 FROM
THE TEXAS DEPARTMENT OF AGRICULTURE IN THE NO. 1067
PARKS AND RECREATION GRANTS FUND TO OPERATE THE CHILD
AND ADULT CARE FOOD PROGRAM; AND DECLARING AN
EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That $220,000 grant from the Texas Department of Agriculture is
appropriated in the No. 1067 Parks and Recreation Grants Fund to operate the Child
and Adult Care Food Program
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: August 26, 2008
Lisa Aguilar
Assistant City Attorney
for City Attorney
Henry Garrett
Mayor
—64—
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
—65—
2
RESOLUTION
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE AN
INTERLOCAL COOPERATION AGREEMENT WITH THE CORPUS
CHRISTI INDEPENDENT SCHOOL DISTRICT FOR THE AFTER
SCHOOL SNACK — CHILD AND ADULT CARE FOOD PROGRAM
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. The City Manager, or designee, is authorized to execute an
Interlocal Agreement with the Corpus Christi Independent School District for the
after school snack — child and adult care food program. A copy of the agreement
in substantial form is attached.
SECTION 2. This Resolution shall take effect and be in full force immediately after its
adoption by the City Council.
ATTEST:
Armando Chapa
City Secretary
APPROVED: August 26, 2008
Lisa Aguilar
Assistant City Attorney
For City Attorney
—66—
THE CITY OF CORPUS CHRISTI
Henry Garrett
Mayor
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
—67—
Page 1 of 3
INTERLOCAL COOPERATION AGREEMENT
BETWEEN THE CITY OF CORPUS CHRISTI
AND CORPUS CHRISTI INDEPENDENT SCHOOL DISTRICT
FOR THE AFTER SCHOOL SNACK CHILD AND ADULT CARE FOOD PROGRAM
This Interlocal Cooperation Agreement ( "Agreement ") is entered into by and between the City
of Corpus Christi, a Texas home -rule municipal corporation ( "City "), acting through its duly
authorized City Manager ( "City Manager ") or the City Manager's designee, and the Corpus
Christi Independent School District ( "District "), acting through its duly authorized
Superintendent or the Superintendent's designee, for purposes of the Texas Interlocal
Cooperation Act, Government Code, Chapter 791, as amended, to achieve efficiency in meeting
intergovernmental responsibilities.
WHEREAS, the City is sponsoring the Child and Adult Care Food Program, a federally- funded
and state - administered program to provide after school snacks to school -age children at
approved after school program sites, from October 1, 2008 through June 3, 2009; and,
WHEREAS, the District agrees to provide unitized snack -sized meals, inclusive of milk or juice,
to City for a fixed fee.
NOW, THEREFORE, the City and District, in consideration of the mutual covenants contained
herein, agree as follows:
Section 1. Term. This Agreement begins October 1, 2008, and continues through June 3,
2009.
Section 2. Consideration. The City shall pay the District $.65 per snack -sized meal ( "Snack"
or "Snacks ") provided to City by the District. The District will maintain its food service operation
at its facility, which will be utilized for the preparation and packaging of the Snacks, during the
term of this Agreement.
Section 3. Nutrition Assurances. The District shall ensure that each Snack will meet the
minimum nutrition value and content requirements currently mandated and as may be hereafter
promulgated by the Texas Department of Agriculture for supplemental food components, in
accordance with the Child and Adult Care Food Program - Child Care Center Regulations,
which are incorporated in this Agreement by reference as if fully set out herein.
Section 4. Record Keeping.
(A) District must maintain full and accurate records which must include the following:
(1) Menu Records, which will include the amount of food prepared and which comply with the
requirements described in the Child and Adult Care Food Program - Child Care Center
Regulations that are incorporated in this Agreement by reference; and Snack Records, which
will include the daily number of Snacks delivered by type and which comply with the
requirements described in the Child and Adult Care Food Program - Child Care Center
Regulations that are incorporated in this Agreement by reference.
:G- DIR \Lisa\2008 Parks and RecreationtAgmt -CCISD Interlocal Agmt After School Snec&ij Sawt.tloc
Page 2 of 3
(B) District must provide monthly reports of Menu Records and Snack Records to the City's Park
and Recreation Director of Programs, or designee, within ten (10) business days following the
end of the preceding month in which Snacks were provided to City.
(C) District must make all records and accounts pertaining to the Child and Adult Care Food
Program available to representatives of the U.S. Department of Agriculture, the U.S. General
Accounting Office, or the Texas Department of State Health Services for audit and
administrative review at a reasonable time and place.
(D) District must retain the Menu Records and Snack Records for three (3) years plus ninety (90)
days following the termination of this Agreement, or so long as an audit of the Menu Records,
Snack Records, or both, is in progress.
Section 5. Program Coordination. The City's Park and Recreation Director of Programs, or
the Director of Programs' designee, shall place a daily order with the District's Food Service
Director, or the Food Service Director's designee, and must specify the number of Snacks
needed by type, the sites at which the Snacks are needed, and the time by which the Snacks
must arrive at each site.
Section 6. Food Service Employees. The District's food service employees shall be
responsible for transporting and delivering the Snacks to each site. The District's food service
employees will continue to be District employees for the term of this Agreement and are,
therefore, subject to the District's policies and regulations. The City's officers, employees,
representatives, and agents shall not exercise any control nor supervision over District's food
service employees at any time during the term of this Agreement.
Section 7. Payment. The District shall invoice the City on a monthly basis for all Snacks
provided to the City by District. The City must pay the invoice within two Fridays after receipt of
same.
Section 8. Current Revenue. All money spent for the Child and Adult Care Food Program
must be spent out of currently available revenue of the City and District.
Section 9. Governmental Service. This Agreement is between the City and the District for the
purpose of providing snacks at City- sponsored after school program sites and is not for the
benefit of any third party or individual.
Section 10. Non - Assignment. Neither this Agreement, nor any interest therein, is assignable
or transferable, in whole or in part, directly or indirectly, without the prior consent of the City and
the District; however, this Agreement is binding upon the parties to this Agreement and their
respective heirs, successors, and assigns.
Section 11. Laws. Both the City and District shall comply with all applicable Federal, State,
County, and local laws, ordinances, rules, and regulations pertaining to this Agreement and
each party's respective performance thereunder.
:G- DIR \Lisa\2008 Parks and Recreatlon\Agmt -CCISD Interlocal Agmt After School Snack Cya §.doc
Page 3 of 3
Section 12. Modifications. No changes or modifications to this Agreement may be made, or
any provision waived, unless made in writing and signed by persons authorized to sign
agreements on behalf of each party.
Section 13. Severance Clause. If for any reason any section, paragraph, subdivision, clause,
provision, phrase, or word of this Agreement is held invalid or unconstitutional by final judgment
of a court of competent jurisdiction, it does not affect any other section, paragraph, subdivision,
clause, provision, phrase, or word of this Agreement, for it is the definite intent of this Agreement
that every section, paragraph, subdivision, clause, provision, phrase, or word hereof be given
full force and effect for its purpose.
Section 14. Entirety Clause. This Agreement and any documents incorporated by reference
constitute the entire agreement between the City and District. All other agreements, promises,
and representations, unless contained in this Agreement, are expressly revoked as the parties
intend to provide for a complete understanding, within the provisions of this Agreement and its
incorporated documents, of the terms, conditions, promises, and covenants relating to each
party's agreed performance.
EXECUTED IN DUPLICATE, each of which shall be considered an original, on this the
day of , 2008.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa, City Secretary George K. Noe, City Manager
APPROVED AS TO LEGAL FORM , 2008.
Lisa Aguilar, Assistant City Attorney
For City Attorney
ATTEST: CORPUS CHRISTI INDEPENDENT SCHOOL DISTRICT
By: By:
Name: Name:
Title: Title:
Date: Date:
APPROVED AS TO LEGAL FORM this day of , 2008.
By:
Attorney for Corpus Christi ISD
EG- DIR1Lisa \2008 Parks and Recreation\.gmt -CCISD Interlace! Agmt After School Snack. tsnt.doc
TEXAS DEPARTMENT OF AGRICULTURE
FOOD NUTRITION DIVISION
AGREEMENT
STATE OF TEXAS§
COUNTY OF TRAVIS §
The Texas Department of Agriculture, hereinafter referred to as TDA,
AND
L -ai y Or (` "a Ch. , eF. , hereinafter referred to as Contractor,
do hereby make and enter into this Agreement ( "Agreement "), as required by the National School Lunch Act and the Child
Nutrition Act, as amended, and the following program regulations: the National School Lunch Program (NSLP), 7 Code of Federal
Regulations (CFR) Part 210; the Special Milk Program (SMP), 7 CFR Part 215; the School Breakfast Program (SBP), 7 CFR Part
220; the Summer Food Service Program (SFSP), 7 CFR Part 225; and the Child and Adult Care Food Program (CACFP) 7 CFR
Part 226 (collectively herein, "Programs ").
This Agreement establishes or continues the rights and responsibilities of TDA and Contractor pursuant to Contractor's
participation in one or more of the above named programs as stipulated herein. If this Agreement continues as an existing
agreement, all existing terms, conditions, liabilities and obligations of the parties under the prior Agreement remain in full force
and effect, except to the extent that those teens, conditions, liabilities and obligations conflict with this Agreement, in which case
this Agreement takes precedence.
By signing this Agreement, both parties are bound by its terms and conditions from its beginning effective date, or the beginning
effective date of any prior Agreement(s) continued by this Agreement, until terminated in accordance with this Agreement.
I.
MUTUAL AGREEMENTS
The Parties mutually agree:
A. If Contractor fails to provide services in accordance with the provisions of this Agreement, TDA may, upon written notice of
default to Contractor, immediately terminate the whole or any part of this Agreement, including refusal to pay claims for
reimbursement, and such termination shall not be an exclusive remedy but shall be in addition to any other rights and remedies
provided by law or under this Agreement
B. If federal or state laws or other requirements are amended or judicially interpreted so that the continued fulfillment of this
Agreement, on the part of either party, is substantially unreasonable or impossible, or if the parties are unable to agree upon
any amendment which would therefore be needed to enable the substantial continuation of the services contemplated by this
Agreement then, the parties shall be discharged from any further obligations created under the terms of this Agreement, except
for the equitable settlement of the respective accrued interest of obligations, including audit findings, incurred up to the date of
termination.
II.
CONTRACTOR PROGRAM ADMINISTRATION AND FINANCIAL MANAGEMENT
A. Contractor will comply with all applicable regulations for its designated program, as well as 7 CFR Parts 245 and 250, as
amended, the Uniform Federal Assistance Regulation (7 CFR, Part 3015, as amended), Audits of State, Local Govemments,
and Non - Profit Organizations (7 CFR 3052, as amended) and state policies and procedures as issued and amended by TDA.
Contractor further agrees to perform as described in its application (including its Policy statement and supporting documents,
and approved amendments to the application) for participatin in the designated program.
IV.
CIVIL RIGHTS POLICY COMPLIANCE
A. Contractor agrees to comply with Title VI of the Civil Rights Act of 1964 (Public Law 88 -352) and all requirements imposed
by the regulations of the Department of Agriculture (7 CFR Part 15), Department of Justice (28 CFR Parts 42 and 50) and
FNS directives or regulations issued pursuant to that act and the regulations. Section 504 of the Rehabilitation Act of 1973
(public Law 93 -112), the Americans with Disabilities Act of 1990 (Public Law 101 -336), Title IX of the Education
Amendments of 1972 (Title 20 U.S.C. Sections 1 681 -1688) and USDA regulations at 7 CFR Part 15a, the Age Discrimination
Act of 1975 (Public Law 94 -135), and all amendments to each, and all requirements imposed by the regulations issued
pursuant to these acts. These provide in part that no person in the United States shall, on the ground of race, color, national
origin, age, sex, or disability be excluded from participation in, or denied any aid, care, service or other benefits provided by
federal and/or state funding, or otherwise be subjected to discrimination. The contractor also agrees to comply with Health and
Safety Code Section 85.113 (relating to workplace and confidentiality guidelines regarding AIDS and HIV).
Additionally, Title VI of the Civil Rights Act of 1964, and its implementing regulations at 7 CFR, Part 15, prohibit Contractor
from adopting and implementing policies and procedures that exclude or have the effect of excluding or limiting the
participation of clients in its programs, benefits, or activities, on the basis of national origin. Contractor agrees to ensure that
its policies do not have the effect of excluding or limiting the participation of persons in its programs and activities, on the
basis of national origin. The contractor also agrees to take reasonable steps to provide services and information, both orally
and in writing, in appropriate languages other than English, in order to ensure that persons with limited English proficiency are
effectively informed and can effectively participate in and benefit from its programs. Contractor accepts fmal administrative
responsibility for ensuring that its subcontractors take reasonable steps to provide services and information, both orally and
inwriting, in appropriate languages other than English, in order to ensure that persons with limited English proficiency are
effectively informed and can effectively participate in and benefit from that subcontractor's programs and services.
B. Contractor hereby gives assurance that it will immediately take any measures necessary to comply with this section. This
assurance is given in consideration of and for the purpose of obtaining any and all federal financial assistance, grants and
loans of federal funds, reimbursable expenditures, grant or donation of federal property and interest in property, the detail of
federal personnel, the sale and lease of, and the permission to use, federal property or interest in such property or the
furnishing of services without consideration or at a nominal consideration, or at a consideration which is reduced for the
purpose of assisting the recipient, or in recognition of the public interest to be served by such sale, lease or furnishing of
services to the recipient, or any improvements made with federal financial assistance extended to the program applicant by the
TDA. This includes any federal agreement, arrangement, or other contract that has as one of its purposes the provision of cash
assistance for the purchase of food, and cash assistance for purchase or rental of food service equipment or any other financial
assistance extended in reliance on the representation and agreements made in this assurance.
C. Contractor agrees to compile data, maintain records, and submit reports as required, to permit effective enforcement of the
above Acts and permit authorized TDA, USDA and FNS personnel during normal working hours to review such records,
books, and accounts as needed to ascertain compliance with the above Acts. If there are any violations of this assurance, TDA,
USDA and FNS have the right to seek judicial enforcement of this assurance. This assurance is binding on the Contractor, its
successors, transferees, and assignees as long as it receives assistance or retains possession of any assistance from the
department. The person whose signature appears on this Agreement is authorized to sign this assurance on the behalf of the
Contractor.
D. A religious or charitable organization is eligible to be a Contractor on the same basis as any other private organization. The
Contractor retains its independence from State and local governments, including the Contractor's control over the definition,
development, practice, and expression of its charitable or religious beliefs. Except as provided by federal law, TDA shall not
interpret this Agreement to require a charitable or religious organization to alter its form of internal governance or remove
religious art, icons, scripture, or other symbols. Furthermore, if a religious or charitable organization segregates the
government funds provided under this Agreement, then only the financial assistance provided by these funds will be subject to
audit. However, neither TDA's selection of a charitable or faith -based Contractor of services nor the expenditure of funds
under this Agreement is an endorsement of the Contractor's charitable or religious character, practices, or expression. The
purpose of this Agreement is the provision of services; no State expenditures have as their objective the funding of sectarian
worship, instructions, or proselytization.
-72-
4. Contractor agrees by submitting this certification that, should the proposed covered contract be entered into, it shall
not knowingly enter into any subcontract with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from participation in this covered transaction, unless authorized by the United States
Department of Agriculture or other federal department or agency, and /or the Texas Department of Agriculture, as
applicable.
5. Contractor further agrees by submitting this certification that it will include TDA's Form titled "Certification
Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion for Covered Contracts" without
modification, in all covered subcontracts and in all solicitation for all covered subcontracts.
6. Contractor may rely upon a certification of a subcontractor that it is not debarred, suspended, ineligible, or
voluntarily excluded from the covered contract, unless it knows that the certification is erroneous. Contractor must, at
a minimum, obtain certificates from its covered subcontractor upon each subcontractor's initiation and upon each
renewal.
Nothing contained in all the foregoing shall be construed to require establishment of a system of records in order to
render in good faith the certification required by this certification document. The knowledge and information of
Contractor is not required to exceed that which is normally possessed by a prudent person in the ordinary course of
business dealings.
7. Except for contracts authorized under paragraph 4 of these terms, if Contractor in a covered contract knowingly
enters into a covered subcontract with a person who is suspended, debarred, ineligible, or voluntarily excluded from
participation in this transaction, in addition to other remedies available to the federal govemment, the United States
Department of Agriculture, or other federal department or agency; as applicable, and /or the Texas Department of
Agriculture may pursue available remedies, including suspension and /or debarment.
B. Federal Lobbying. This certification applies only to this Agreement and is a material representation of fact upon which
reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than 5100,000 for each such failure.
Contractor certifies, to the best of his or her knowledge and belief, that:
No federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for
influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of
Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of
any federal grant, the making of any federal loan, the entering into of any cooperative agreement, or the extension,
continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting
to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an
employee of a member of Congress in connection with this federally funded contract, subcontract, sub grant, or cooperative
agreement, the undersigned shall complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
Contractor shall require that the language of this certification be included in the award documents for all covered sub
awards at all tiers (including subcontracts, sub grants, and contracts under grants, loans, and cooperative agreements) and that
all covered sub recipients shall certify and disclose accordingly.
C. Conflicts of Interest. Contractor agrees to comply with applicable state and federal laws, rules and regulations regarding
conflicts of interest in the performance of its duties under this Agreement. Contractor warrants that it has no interest and will
not acquire any direct or indirect interest that would conflict in any manner or degree with its performance under this
Agreement.
Contractor will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents
the appearance of personal or organizational conflict of interest, or personal gain. Contractor will operate with complete
independence and objectivity without actual, potential or apparent conflict of interest with respect to the activities conducted
under this Agreement with the State of Texas.
-73-
VIII.
TERM AND TERMINATION
In addition to other provisions of this article allowing termination, this Agreement will terminate upon the Expiration Date
unless extended in accordance with the terms of this Agreement, or terminated sooner under the terms of this Agreement. Prior to
completion of the Initial Term and any extensions or renewal thereof, all or a part of this Agreement may be terminated for any of
the following reasons:
A. Termination by mutual agreement of the Parties. This Agreement may be terminated by mutual agreement of the Parties.
Such agreement must be in writing.
B. Termination in the best interest of the State. TDA may terminate this Agreement at any time when, in its sole discretion,
TDA determines that termination is in the best interest of the State of Texas. The termination will be effective on the date
specified in TDA's Notice of Termination.
C. Termination for cause. TDA reserves the right to terminate this Agreement, in whole or in part, upon the following
conditions:
I. Assignment for the benefit of creditors, appointment of receiver, or inability to pay debts.
TDA may terminate this Agreement if Contractor:
a) Makes an assignment for the benefit of its creditors;
b) Admits in writing its inability to pay its debts generally as they become due; or
c) Consents to the appointment of a receiver, trustee, or liquidator of Contractor or of all or any part of its
property.
2. Failure to adhere to laws, rules; ordinances, or orders. TDA may terminate this Contract if a court of competent
jurisdiction finds Contractor failed to adhere to any laws, ordinances, rules, regulations or orders of any public
authority having jurisdiction and such violation prevents or substantially impairs performance of Contractor's duties
under this Agreement.
3. Breach of confidentiality. TDA may terminate this Agreement if Contractor breaches confidentiality laws with
respect to the Services and Deliverables provided under this Agreement.
4. Failure to maintain adequate personnel or resources. TDA may terminate this Agreement if, after providing notice
and an opportunity to correct, TDA determines that Contractor has failed to supply personnel or resources and such
failure results in Contractor's inability to fulfill its duties under this Agreement.
5. Termination for gifts and gratuities.
a) TDA may terminate this Agreement following the determination by a competent judicial or quasi-judicial
authority and Contractor's exhaustion of all legal remedies that Contractor, its employees, agents or
representatives have either offered or given any thing of value an officer or employee of TDA or the State of
Texas in violation of state law.
b) Contractor must include a similar provision in each of its subcontracts and shall enforce this provision against
a subcontractor who has offered or given any thing of value to any of the persons or entities described in this
Section, whether or not the offer or gift was in Contractor's behalf.
c) Termination of a subcontract by Contractor pursuant to this provision will not be a cause for termination of
this Agreement unless:
(1) Contractor fails to replace such terminated subcontractor within a reasonable time; and
(2) Such failure constitutes Cause as described in this Section.
(d) For purposes of this Section, a `thing of value" means any item of tangible or intangible property that has a
monetary value of more than $50.00 and includes, but is not limited to, cash, food, lodging, entertainment, and
charitable contributions. The term does not include contributions to holders of public office or candidates for
public office that are paid and reported in > Fordance with State and/or Federal law.
6. Termination for non - appropriation of funds. Notwithstanding any other provision of this Agreement, if funds for the
continued fulfillment of this Agreement by TDA are at any time not forthcoming or are insufficient, through failure
of any entity to appropriate fiends or otherwise, then TDA will have the right to terminate this Agreement at no
additional cost and with no penalty whatsoever by giving prior written notice documenting the lack of funding.
7. Judgment and execution.
a) TDA may terminate this Agreement if judgment for the payment of money in excess of $500,000.00 that is
not covered by insurance, is rendered by any court or governmental body against Contractor, and Contractor
does not:
(1) Discharge the judgment or provide for its discharge in accordance with the terms of the judgment;
(2) Procure a stay of execution of the judgment within 30 days from the date of entry thereof; or
(3) Perfect an appeal of such judgment and cause the execution of such judgment to be stayed during
the appeal, providing such financial reserves as may be required under generally accepted accounting
principles.
b) If a writ or warrant of attachment or any similar process is issued by any court against all or any material
portion of the property of Contractor, and such writ or warrant of attachment or any similar process is not
released or bonded within 30 days after its entry, TDA may terminate this Agreement in accordance with this
Section.
8. Termination for insolvency.
a) TDA may terminate this Agreement if Contractor:
(1) Files for bankruptcy;
(2) Becomes or is declared insolvent, or is the subject of any proceedings related to its liquidation
insolvency, or the appointment of a receiver or similar officer for it;
(3) Makes an assignment for the benefit of all or substantially all of its creditors; or
(4) Enters into an Agreement for the composition, extension, or readjustment of substantially all of it
obligations.
b) Contractor agrees to pay for all reasonable expenses of TDA including the cost of counsel, incident to:
(1) The enforcement of payment of all obligations of the Contractor by any action or participation in, o
in connection with a case or proceeding under Chapters 7, 11, or 13 of the United States Bankruptc:
Code. or any successor statute;
(2) A case or proceeding involving a receiver or other similar officer duly appointed to handle th
Contractor's business; or
(3) A case or proceeding in a State court initiated by TDA when previous collection attempts have bee
unsuccessful. .
9. Termination for Contractor's material breach of the Contract. TDA will have the right to terminate this Agreemen
in whole or in part, if TDA determines, at its sole discretion, that Contractor has materially breached this Agreement
10. Termination for Change in Ownership of Institution. Contractor understands and agrees that this Contract is ni
transferable.
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An organizational conflict of interest is a set of facts or circumstances, a- relationship, or other situation under which a
contractor, or a subcontractor has past, present, or currently planned personal or financial activities or interests that either
directly or indirectly:
1. Impairs or diminishes the offeror's, contractor's, or subcontractor's ability to render impartial or objective assistance
or advice to TDA; or
2. Provides the contractor or subcontractor an unfair competitive advantage in future TDA procurements.
Except as otherwise disclosed and approved by TDA prior to the Effective Date of this Agreement, Contractor warrants that
as of the Effective Date and to the best of its knowledge and belief, there are no relevant facts or circumstances that could givt
rise to organizational conflict of interest affecting this Agreement. Contractor affirms that it has neither given, nor intends it
give, at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, of -
service to a public servant or any employee or representative of same, at any time during the procurement process or it
connection with the procurement process except as allowed under relevant state and federal law.
Contractor agrees that, if after the Effective Date, Contractor discovers or is made aware of an organizational conflict o
interest, Contractor will immediately and fully disclose such interest in writing to TDA's Food and Nutrition Division. h
addition, Contractor must promptly disclose any relationship that might be perceived or represented as a conflict after it
discovery by Contractor or by TDA as a potential conflict. TDA reserves the right to make a final determination regarding th
existence of conflicts of interest, and Contractor agrees to abide by TDA's decision. The disclosure will include a descriptiot
of the action(s) that Contractor has taken or proposes to take to avoid or mitigate such conflicts.
If TDA determines that an organizational conflict of interest exists, TDA may, at its discretion, terminate this Agreement. I
TDA determines that Contractor was aware of an organizational conflict of interest before the award of this Agreement ani
did not disclose the conflict to the contracting officer; such nondisclosure will be considered a material breach of th
Agreement. Furthermore, such breach may be submitted to the Office of the Attorney General, Texas Ethics Commission, o
appropriate State or Federal law enforcement officials for further action.
Contractor must include the provisions of this Section C in all subcontracts for work to be performed similar to the servic
provided by Contractor and the terms "Agreement," with the terms "Contractor" and TDA modified appropriately a
preserve the State's rights.
Contractor must not retain or promise to retain any person or company, or utilize or promise to utilize a consultant the
participated in TDA's development of specific criteria of this Agreement or who participated in the approval of the Contractc
for this Agreement.
Contractor will not recruit or employ any TDA professional or technical personnel who has worked on projects relating to th
subject matter of this Agreement, or who has had any influence on decisions affecting the subject matter of this Agreemen
for two (2) years following the completion of this Agreement.
Contractor certifies to its understanding and agreement regarding Conflicts of Interest.
D. Franchise Taxes. Contractor certifies that if it is a corporation, it is either a for -profit corporation that is not delinquent in i
franchise tax payments to the State of Texas, or is a non -profit corporation or is otherwise not subject to payment of franchit
taxes to the State of Texas.
E. Contractor certifies that all information submitted pursuant to this agreement is true and correct. Contractor understands th
the deliberate misrepresentation or withholding of information is a violation of this Agreement and may result in prosecutic
under applicable state and federal statutes.
F. Family Code. Under Section 231.006, Texas Family Code, the vendor or applicant certifies that the individual or busine
entity named in this Agreement, bid, or application, and any individual who is a partner, shareholder, or owner with at lea
25% interest in the business entity, is not ineligible to receive the specified grant, loan, or payment and acknowledges that ti
Agreement may be terminated and payment may be withheld if this certification is inaccurate.
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A charitable or faith -based provider of services under this Agreement shall reasonably apprise all assisted individuals of the
following: "Neither TDA's selection of a charitable or faith -based provider of services nor the expenditure of funds under this
contract is an endorsement of the provider's charitable or religious character, practices, or expression. No provider of services
may discriminate against you on the basis of religion, a religious belief, or your refusal to participate in a religious practice. If
you object to a particular provider because of its religious character, you may request assignment to a different provider. if you
believe that your rights have been violated, please discuss the complaint with your provider or notify TDA's Food and
Nutrition Division. "
Section 104 of The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 42 U.S.C. § 604a, sets forth
certain additional rights and responsibilities for charitable and faith -based providers of services, certain additional rights of
assisted individuals, and certain additional responsibilities of TDA to these providers and assisted individuals. This Agreement
is subject to those additional rights and responsibilities.
V.
TDA CLAIMS PAYMENT
A. TDA will, subject to the federal appropriation and availability to TDA of sufficient funds for the applicable program, make
program payment to Contractor in accordance with the terms of this Agreement. No reimbursement shall be made for
performance under this Agreement occurring prior to (a) the beginning effective date of this Agreement or (b) a later date
established by TDA based on the date of receipt of a fully executed copy of this Agreement.
B. This paragraph is pursuant to §2252.903 of the Texas Government Code. Any payments owing to Contractor under thi:
Agreement will be applied toward elimination of Contractor's indebtedness to the state, delinquency in payment of taxes to thi
state, or delinquency in payment of taxes that the comptroller administers or collects until the indebtedness or delinquency is
paid in full.
VI.
IMMIGRATION
Contractor agrees to comply with the requirements of the Immigration Reform and Control Act of 1986 regarding employmer
verification and retention of verification forms for any individuals hired after November 6, 1986, who will perform any labor c
services under this Agreement.
VII.
CERTIFICATION
A. Debarment, Suspension, Ineligibility, or Voluntary Exclusion For Covered Contracts. Contractor certifies, by execution of th.
Agreement, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, c
voluntarily excluded from participating in this contract by any federal department or agency or by the State of Texas. B
making this certification Contractor agrees to the following terms:
1. The above certification is a material representation of fact upon which reliance was based when this Agreement wt
entered into. If it is later determined that the Contractor knowingly rendered an erroneous certification, in addition
other remedies available to the federal government, the United States Department of Agriculture or other feder
department of agency, or the Texas Department of Agriculture may pursue available remedies, including suspensic
and/or debarment.
2. Contractor shall provide immediate written notice to the person to which this certification is submitted if at any tin
Contractor learns that the certification was erroneous when submitted or has become erroneous by reason of change
circumstances.
3. The words "covered contract," "debarred," suspended," "ineligible," "participant," "person," "principal," "propose:
and voluntarily excluded," as used in this certification have meanings based upon materials in the Definitions ai
overage sections of federal rules implementing Executive Order 12549. Usage is defined in the attachment.
-77-
B. Contractor accepts final administrative and financial responsibility for food service operations in each school, summer
feeding site, and child and /or adult care facility, hereinafter referred to as a site, operated or sponsored by Contractor. The
responsibility includes any audit exceptions or payment deficiency in the program covered by this contract, and all
subcontracts hereunder, which are found after monitoring or auditing by TDA or USDA and will be responsible for the
collections and payback of any amount paid in excess of the proper claim amount.
C. Contractor must submit for TDA approval only those applications for sites which have delegated the authority for the
administration of food service operations to the Contractor or which have executed sub agreements with Contractor for the
administration of food services operations.
D. If Contractor participates in the NSLP, Contractor agrees:
1. That the official signing the Claim for Reimbursement will be responsible for reviewing and analyzing meal
counts to ensure accuracy and compliance with federal regulations;
2. To enter into an agreement to receive donated foods as required by federal regulations;
3. To price the lunch as a unit;
4. To claim reimbursement at the assigned rates only for reimbursable free, reduced price and paid lunches served
to eligible children in accordance with 7 CFR part 210;
5. Count the number of free, reduced price and paid reimbursable meals served to eligible children at the point of
service, or through another counting system, if approved by TDA; '
6. Limit its net cash resources to an amount that does not exceed 3 months average expenditures for its nonprofit
school food service or such other amount as may be approved in accordance with 7 CFR §210.19(a); and
7. Maintain a financial management system as prescribed under 7 CFR §210.14(c).
E. If Contractor participates in the CACFP, Contractor shall provide or accept responsibility for the provision of organized, non.
residential child day care and will immediately report to the Texas Department of Family and Protective Services (DFPS;
Licensing or Child Protective Services staff, any suspected violations of DFPS Licensing standards or suspected abuse o:
children in sponsored centers or day homes.
F. Contractor understands that acceptance of funds under this Contract acts as acceptance of the authority of the State Auditor':
Office (SAO), or any successor agency, to conduct an investigation in connection with those funds. Contractor further agree
to cooperate fully with the SAO or its successor in the conduct of the audit or investigation, including providing all record
requested. Contractor will ensure that this clause concerning the authority to audit funds received indirectly by subcontractor
through Contractor and the requirement to cooperate is included in any subcontract it awards.
G. Notification of Change of Information. Contractor agrees to submit to TDA's Food and Nutrition Division an amendment 1,
its application or management plan, on TDA's form, when any change occurs from infomration that was originally submitte
in Contractor's application.
III.
RECORD KEEPING
A. Contractor will keep financial and supporting documents, statistical records, and any other records pertinent to the services ft
which a claim was submitted in the manner and detail prescribed by TDA. Unless otherwise provided by state or federal lav
the records and documents will be kept for a minimum of 3 years and 90 days after the termination of the federal fiscal ye;
for the relevant program. If any litigation, claim, or audit involving these records begins before such period expire
Contractor will keep the records and documents for not less than 3 years and 90 days and until all litigation, claims or and
findings are resolved. The case is considered resolved when there is a final order issued in litigation, or a written agreement
entered into between TDA and the Contractor. Contractor will keep records of non - expendable property acquired under ti
contract for 3 years and 90 days after final disposition of the property.
B. Contractor and its subcontractors will allow TDA and USDA officials and other appropriate officials determined by TDA
inspect facilities and records and to audit, examine, and copy records at any reasonable time. This includes access to 1
records of costs paid, even in part, by TDA.
C. Contractor and its subcontractors will establish a method to secure the confidentiality of records and other information relati
to clients in accordance with the applicable federal law, rules, and regulations, as well as the applicable state law a
regulations. The provision shall not be construed as limiting TDA's right of access to recipient case records or otl
information relating to clients served under this conmlar
IX.
EFFECTIVE DATE AND SIGNATURES
This Agreement shall take effect on Oc-tubr,- t , 200 8 , or upon signature by appropriately authorized representatives of
both parties, whichever is later. The parties hereto in their capacities stated, affix their signatures and bind themselves for the
faithful performance of the teens of this Agreement pursuant to participation in the following program or programs:
National School Lunch Program
School Breakfast Program
Special Milk Program
Ci 44 ar ?kis � r; si'
Name o ontracting Organization
(Please print or type)
Name ofOfficial Signing
(Please print or. type)
By:
CONTRACTOR
By:
SignatuEe oYchairman of the board of directors
or other official who has been authorized to sign
contracts on behalf of the contracting organization.
Child and Adult Care Food Program
Summer Food Service Program
C. A ay le-
Title of icial
(Please print or type)
TEXAS DEPARTMENT OF AGRICULTURE
TDA Representative
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Date:
Revised January 2008
6
AGENDA MEMORANDUM
SUBJECT: 48th Annual Texas Jazz Festival
AGENDA ITEM:
DATE: August 19 2008
Motion authorizing the City Manager, or his designee, to issue a permit for the temporary street
closures of Hughes Street from Chaparral Street to Mesquite Street and Fitzgerald Street from
Chaparral Street to Mesquite Street for the 48"' Annual Texas Jazz Festival, starting on Friday,
October 17, 2008 at 8:00 a.m. through Sunday, October 19, 2008 at 11:59 p.m. upon meeting
the conditions and requirements for permit in Sec. 49-17.
ISSUE:
Event Organizer, Richard Sanchez, has requested the temporary street closure of Hughes
Street and Fitzgerald Street between Chaparral Street and Mesquite Street starting on Friday,
October 17, 2008 at 8:00 a.m. through October 19, 2008 at 11:59 p.m., to be approved by the
City Council for the 48th Annual Texas Jazz Festival pending the Certificate of Insurance two
weeks prior to the event. Section 49 -17(a) of the City Code of Ordinances, requires, as a
condition of the street closure, that all events shall be open to the public and admission shall be
free.
REQUIRED COUNCIL ACTION: Street closing permits for events require City Council
approval. Pending Insurance two weeks prior to the event.
FUNDING: NIA
RECOMMENDATION: Approval of the motion as presented.
Additional Support Material
Exhibit "A" Background Information
Exhibit "B" Site Map
q/144,g/
Kevin R. Stowers,
Interim Director of Engineering Services
—83—
BACKGROUND INFORMATION
Backaround Information:
The Texas Jazz Festival Society will host their "48th Annual Texas Jazz Festival° starting on
Friday, October 17, 2008 at 5:00 p.m., through Sunday, October 19, 2008 at 10:00 p.m. In
previous years the Texas Jazz Festival has been held in Heritage Park. This year, The Texas
Jazz Festival Society has expanded their entertainment venues; therefore, is requesting the
temporary street closures of Hughes Street from Chaparral Street to Mesquite Street and
Fitzgerald Street from Chaparral Street to Mesquite Street.
The 48"' Annual Texas Jazz Festival is a free event to the public that will have more than 55
entertainment groups on three different stages. Arts and Crafts Activities booths will be set up
for all to enjoy as well as various venders. The Texas Jazz Festival Society will have to
provide the Certificate of Insurance two weeks prior to the event.
EXHIBT "A"
Paae 1 of 1
—84—
N
SCALE: 1"=3501
ART
USEUM
CONVENTION
CENTER
HUGHES 51
AMERICA' BANK
ARENA
RESACA ST
® - STREET CLOSURE
48th ANNUAL
TEXAS JAll FESTIVAL
EVENT SITE
PALO ALTO ST.
POWER ST.
r>, n
1 EXHIBIT "B" - SITE PLAN -
SUBJECT. STREET CLOSURES Traffic Engineering
Div.
48th ANNUAL TEXAS JAll FES *AL
Engineering Services Dept.
RECEIVED
MAY g 8 2008 TRAFFIC ENGINEERING DIVISION
DEPARTMENT OF ENGINEERING SERVICES
AVM
Traffic Engineering Division
City of Corpus Christi
APPLICATION FOR PERMIT TO CLOSE STREET FOR PUBLIC EVENTS
1 . Name of Organization Sponsoring Event:1 I F . S S A S 1;;;Z- 4 4 -& 6C/6.17
VA( `fmi/ /t CrP.ctc
2. Name of Proposed Event: S . 14-22- 'Far u /1 t !1 //luf( a-0-, te7fWh3
3. Date of Planned Event: -,100wcc 17-- NI , Zoo il
4. Key Contact Individual 51-vu (le Z Phone No .a2-u
5. Street(s) Requested for Closure, Dates and Times of Day: - DESCRIBE
HI/rs 5T A �fzf se- sf /00,4 Odom, /7 -20.20 e
Con .r►r.vv, n !flt.
6. Purpose of Event and Detailed Description of Activities Planned:
9 1 Vt22 Fe5-74, /s 4- 3 -1M7 Aiot« A-vtr /5efr�
10 i ✓. v. ; -« f ,z- f oof
7. List foods and beverages to be served:
VA* -as- AI-
PM(
tint roach twit IF Se /6;v! freer Dit A tr , dew, end tv4;vr
avt
6a:d,err
8. Services Requested by the City:
__Services
7a d4re -IL by A/Mei SAS Tr rim /Mode -
9. Attach a diagram illustrating in detail the location of booths, stages,
restrooms, first -aid stations, etc., that will be included in the event.
10. Enclose a check or money order for $200 to cover administrative costs of
handling application, payable to the City of Corpus Christi (City Ordinance #20463,
9/20/88).
-86-
Permit to Close Street for Public Events 2
11. Attach an official letter of transmittal requesting approval of the event.
12. In consideration of obtaining a permit to close a City street for a public event,
the applicant or sponsoring organization agrees to comply with the following
applicable conditions:
A. Admittance to said event shall be free; 53 ` C N ° A P' "±
B. All profits derived from the event shall be for charitable causes; �D "aa ' z <. on
C.__-- •-Pay -the City four- percent 4%) of the. gross receipts derived•- from- . event, ...or
reimburse— the -City foc..alL.. costs=.. incurr ed -bic-tbea,City.:..in _. support -of .:said...event.
reGords=shall- be maintained- and paymentshaW --be nade-to .the,cfity
within•'siXt "'(60 '-days aff'er Tfieev& 1 ends.
D.* Provide and maintain an insurance policy with the limits and requirements
shown on the attached Exhibit "B" (Two ;detics or Fe, Ever---
' E.* Completion of Indemnification Agreement;
F. Provision of a traffic control plan for event, to be coordinated with the Traffic
Engineering Division and Police Department. The City shall be reimbursed for its
installation of all traffic signage and barricading determined by the City to be
necessary for safe control of the event.
-G." Require written notice and notice to be given to tenants and building
managers; and posting of same inside entrances to multi - tenant buildings. This notice
is to be furnished and posted a minimum of 2 week prior to the required City Council
meeting at which the motion to approve the Temporary Street Closure permit will be
considered.
N. Provide adequate number of restroom facilities to accommodate the
anticipated public;
vl.• Obtain the appropriate alcohol and food permits required by State and Local
authorities, at (east two (2) weeks prior to the event;
✓J. All security other than perimeter traffic control shalt be provided by sponsor;
security shall consist of off -duty City Police officers, or other type security officially
approved by the City.
"k. All construction of booths, stages, displays, electrical services and plumbing
shall comply with City Codes. The final layout of booths shall be approved by the
Director of Parks and Recreation;
\'L. Provide for potable water within the event site;
'M. Provide first -aid stations;
• N. Provide continuous cleaning of the site during the event and return it to pre -
event condition after event ends;
- 0. Restore any damaged City property promptly after event ends;
P. Coordinate all phases of event with appropriate City departments to insure a
,safe and successful event;
Q. Vehicles shall be prohibited from parking on grass areas within the street right -
of -way.
R. No obliteration or defacing of the street surface or sidewalk; except by chalk
markings;
-87-
�S. All City Noise Abatement Ordinances shall be complied with;
T. Allow for the free passage of emergency vehicles into event area in case of
emergency;
Al. Carnival -type rides will not be permitted.
,A/. Building and Electrical permits for a temporary promotional event, associated
construction and Certificate of Occupancy are required.
Evidence that these conditions have been met must be presented to the
City Traffic Engineer prior to the request being submitted to the City Council for
final approval.
Signed:
Event Chairman /Organizer
�t SCA
Sponsoring Organization
Date Submitted: S /eQ r/
-88-
INDEMNITY AGREEMENT
THE STATE OF TECAS §
COUNTY OF.NUECES B
WILMS,
Section ill of said standards, entitled rehtlulres a contractor for a penult to dose or blodc any part of a roadway to the a
statement with the Director of Etgineering Services Traffic EngkheerIng DIVislon
indemnifying in the dty against all claims or causes of action tri reason of or arising
Idosing or bioddr g of the roadway pursuant to a permk issued by the Oty.
Now, therefore, in consideration. for the issuance. of a pent to the undersigned
by the City of Corpus Christi, for the purpose of barricading, blocking or closing a street,
alley or other public right - of-way 11 said City, said paint applicant agrees 1a indemnify
and safe harmless and defended the Oty of Corpus Christi, Its agents and employees
Dom any and at claims, lawsuits„ demands, IFabilRles, • losses or expenses, inducting
corm costs and reasonable attorneys fees, for or on acme* of any Injury to any
person, or any death at any time resulting tram such Injury, or any damages to any
pnopety which arise or may be alleged to have arisen directly or Indirectly, as a result
of the granting of ills pernrt.
The Contractor, during the term of operations spedfied In this Public Right -of-
Way Blockage Permit, will. provide and maintain at the Contractor sapense,
Comprehensive General liability Insurance coverage with a Contractual Uabllty
endorsanut and with minkrrm limits of $i,000,000 Combined Sbgie Unit for
lege sob or #600,000 for sawn manta as required by the Risk Manager of the
Oty of Corpus Christi pursuant to Ordinance #19277. The (Ay of Corpus Christi will be
named as Addillbanund on the policy. evidence of required insurance coverage
with he a Certificate of Insurance furnished to the Traffic Engineering Division prior to
the proposed blockage under this permit .
Witness my (our) hand(s) this 8 date of Mx?, 2001
kei
-` i a iiitde G --
KNOW ALL MEN BY THESE PRESENTS
-89-
EXHIBIT
INSURANCE REQUIREMENTS
1. PERMITTEE'S LIABILITY INSURANCE
A. Permittee must not commence work under this agreement until he /she has
obtained all insurance required herein and such insurance has been approved by the
City. Nor may Permittee allow any subcontractor to commence work until all similar
insurance required of the subcontractor has been so obtained.
B. Permittee must furnish to the City's Risk Manager two (2) copies of Certificates
of Insurance, with the city named as an additional insured for all liability policies, and
a blanket waiver of subrogation on all applicable policies showing the following
minimum coverage by an insurance company(s) acceptable to the City's Risk Manager.
TYPE OF INSURANCE
MINIMUM INSURANCE COVERAGE
30-Day Notice of Cancellation required on all certificates
Bodily Injury and Property Damage
Commercial General Liability including:
1. Commercial form
2. Premises - Operations
3. Products completed Operations
4. Contractual Insurance
5. Broad Form Property Damage
6. Independent Contractors
7. Personal Injury
$1,000,000 COMBINED SINGLE LIMIT for large events
Or
$500,000 COMBINED SINGLE LIMIT for small events
AUTOMOBILE LIABILITY —OWNED NON —OWNED OR RENTED
$500,000 COMBINED SINGLE LIMIT
WORKERS' COMPENSATION
EMPLOYER'S LIABILITY
WHICH COMPLIES WITH THE TEXAS WORKERS' COMPENSATION
ACT AND PARAGRAPH II OF THIS EXHIBIT
$100,000
C. In the event of accidents of any kind, Permittee must furnish the Risk Manager
with copies of all reports of such accidents at the same time that the reports are
forwarded to any other interested parties.
II. ADDITIONAL REQUIREMENTS
A. Permittee must obtain workers' compensation coverage through a licensed
insurance company or through self-insurance obtained in accordance with Texas law.
If such coverage is obtained through a licensed company, the contract for coverage
must be written on a policy and endorsements approved by the Texas Department of
Insurance.
Whether workers' compensation covergpe is provided through a licensed insurance
rmmnnn., nr thrnuoh Golf- inenranre_ the coverage provided must be in an amount
sufficient to assure that all workers' compensation obligations incurred by Permittee
will be promptly met.
B. Certificate of Insurance:
The City of Corpus Christi must be named as an additional insured on
the liability coverage, except for the Workers' Compensation coverage and a blanket
waiver of subrogation on all applicable policies.
If your insurance company uses the standard ACORD form, the
cancellation clause (bottom right) must be amended by adding the wording
"changed or" between "be" and "canceled ", and deleting the words, "endeavor to ",
and deleting the wording after "left ".
Operations"
required.
The name of the project must be listed under "Description of
At a minimum, a 30 -day written notice of change or cancellation is
C. If the Certificate of Insurance does not show on its face the existence of the
coverage required by items 1.B (1 )-(8), an authorized representative of the insurance
company must include a letter specifically stating whether items 1.B (1 )-(8) are
included or excluded.
III. A completed Disclosure of Interest must be submitted with your proposal.
—91—
... Evit
Food Vendors
http: / /www.evittgom /pages/invite/ printViewjspievent= RCSAAECPFCBDJBMDQSKD 4/10/2008
—92—
-6-4(.; 1 ZZ
FUME NEM
Officers i Directors
Rick Sanchez
President
Emilio Reyes
First vice - President
Lydia "DeeDee" Flores
Second Vice - President
Marty Alvarez
Secretary
Harold Davis
Treasurer
Beto Garcia
Founder
Bobby Galvan
Founder
Eddie Galvan
Founder
Rene Sandoval
Founder
Eddie Olivarez
Founder
Junior Alvarez
Founder
Directors
Charlie Herschbach
Nick Martinez
Jon Perez
Kathy Reyes
Gail Sanchez
Wayman Tooles
PO Box 424
Corpus Christi, TX 78403
(361) 883 -4500
www.texasjazz- fest.org
48th Annual Texas Jazz Festival Press Release
The Texas Jazz Festival Society is proud to announce The 48th Annual Texas Jazz
Festival October 17 -19 , 2008 at Heritage Park in downtown Corpus Christi, Texas.
We will have over 55 swinging groups on 3 stages for 3 days. Still free after 47
years. Yes, there is no admittance fee. Of course there will be many food booths
and arts & crafts booths We bring thousands of people from all over the nation to
Corpus Christi for that weekend. We have charter buses coming from San Antonio
and Houston. We are looking for ways to accommodate all these people and finding
more room . We can do this by closing the 2 end streets, Fitzgerald and Hughes.
Please consider this because we really don't want to move to another site.
For more information check out our web site www.texasja77- fest.org or call (361)
688 -1296.
Thanks for your consideration,
Rick Sanchez,President
Texas Jazz Festival
A I. o: -'Pro t$ ;or pr:r itb f
7
CITY COUNCIL
AGENDA MEMORANDUM
Council Action Date: September 23, 2008
AGENDA ITEM: Authorizing the City Manager or designee to lease real property to the
United States Coast Guard for $1.00 a year for a term on nineteen years, nine months
(beginning on January 1, 2009 and ending on September 30, 2028) in connection with a
navigation marker mounted on the east wall of the South Texas Institute for the Arts
Building, an aid to navigation (ATON) structure known as the "Corpus Christi Channel Cut
'B' West Range Front Light (ACLL 7817) "; and providing for publication.
ISSUE: City Ordinance No. 6471 was approved on March 28, 1962 granting the U.S.
Coast Guard a revocable permit to install a navigation marker located near the City barge
docks on the south shore of the ship channel. This marker is one of the most critical
navigation aids for ships entering the Ship Channel. The Coast Guard has requested a new
long term lease which is proposed to begin January 1, 2009 and end on September 28,
2028 at an annual rate of $1.00 per year. This is the same rate included in the original
1962 permit.
Generally, an ordinance granting or authorizing the execution of a lease of City property for
more than five years must be read at two regular meetings of the City council. The
ordinance will not be acted upon until the twenty- eighth day after the first reading and
requires a publication of notice of the proposed lease within five days following each of the
two readings.
FUNDING: None required for this item.
RECOMMENDATION: Approval of the ordinance as presented.
Attachments:
Exhibit A.
Exhibit B.
Exhibit C.
Wioqc
Kevin Stowers
Interim Director of Engineering Services
Background Information
City Council Exhibit (ANTON Front Light ACLL 7817)
U.S. Govemment Lease for Real Property
H ;\HOME\EUSEBIOG \GEMAgenda Items \Coast Guard Navigation Marker lease■Agenda Memorandum.doc
—97—
BACKGROUND INFORMATION
SUBJECT: Coast Guard Lease for Navigation Marker ACLL 7817
BACKGROUND: City Ordinance No. 6471 was approved on March 28, 1962 granting the
U.S. Coast Guard a revocable permit to install a navigation marker located near the City
barge docks on the south shore of the ship channel. The marker is now mounted on the
east wall of the South Texas Institute for the Arts Building as shown on the attached Exhibit
B. The navigation marker known as "Corpus Christi Channel Cut "B" West Front Light
(ACLL 7817) is needed for navigation purposes of ships approaching the ship channel.
The Coast Guard requested a long term lease to replace the current annual lease which
will conform to their new Homeland Security Policy. The Coast Guard originally requested
that the lease begin on September 1, 2008 and end on September 30th to coincide with
their fiscal year. However, due to the City Charter's two reading requirement and twenty-
eight day delay, this lease would not take effect until mid - December. The lease term has
been renegotiated and revised to begin on January 1, 2009 and end on September 30,
2028. Council approval of the ordinance is requested.
PRIOR COUNCIL ACTION:
1. March 28, 1962 - Ordinance authorizing and directing the City Manager
Of the City of Corpus Christi, for and on behalf of the City , to execute a contract in
the form of a Revocable Permit to the United States Coast Guard in lieu of a
Revocable Permit dated August 16, 1961, for the use by the United States Coast
Guard of an area 15 feet square located near the City barge docks on the south
shore of the ship channel, all as more particularly described and set forth in the
permit, a copy of which is attached hereto and made a part hereof, and declaring an
emergency. (Ordinance No. 6471)
PRIOR ADMINISTRATIVE ACTION: None
FUTURE COUNCIL ACTION: None
H:WOME\EUSEBIOG \GEN\Agenda Items \Coast Guard Navigation Marker lease \Background.doc
EXHIBIT A
—98—
STANDARD FORNI
FEBRUARY 1965
EDITION / GENERAL
SERVICES
ADMINISTRATION
FPR (41 CFR) 1- 16.601
U.S. GOVERNMENT
LEASE FOR REAL PROPERTY
DATE OF LEASE LEASE No.
October 01, 2008 HSCG82- 08- L- 8N3067
THIS LEASE made and entered into this date by and between City of Corpus Christi,
whose address is 1201 Leopead Street, Corpus Christi, TX 78469 -9277, and whose interest
in the property hereinafter described is that of Owner, hereinafter called the Lessor, and the
UNITED STATES OF AMERICA, hereinafter described as the United States Coast Guard,
hereinafter called the Government:
WITNESSETH: The parties, hereto for the consideration hereinafter mentioned, covenant
and agree as follow:
1. The Lessor hereby leases to the Government the following described premises,
hereinafter referred to as the "premises ".
Site address: A show on excerpt copy of US Coast and Geographical Survey Chart
No. 523, marked Exhibit "A" dated January 1962, and incorporated by reference herein
known as Corpus Christi Channel Cut "B" West Range Front Light (ACLL 7817)
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term
beginning on January 1, 2009 through September 30, 2028, subject to termination and
renewal rights as may be hereinafter set forth.
3. CONSIDERATION: The consideration for this lease shall be $1.00, of which the
receipt and sufficiency is hereby acknowledged for the operation and maintenance of this
property to he used by Aids to Navigation equipment for the benefit of the general public
in accordance with the terms and conditions hereinafter set forth.
4. NOTICE: The Government may terminate this lease, for cause, at any time by giving at
least thirty (30) days notice in writing to the Lessor and no rental shall accrue after the
effective date of termination. Said notice shall be computed commencing from the date
of receipt of termination notice. The Lessor may terminate this lease at any time by
giving at least ninety (90) days notice in writing to the Government. Said notice shall be
computed commencing from the date of receipt of termination notice.
STANDARD FORM 2
ITPTIPTIAP 19h5 F.T�TTION
—100-
HSCG82- 08- L- 8N3067
STANDARD FORM 2
FEBRUARY 1965
EDITION I GENERAL.
SERVICES
ADMINISTRATION
FPR (41 CFR) 601
U.S. GOVERNMENT
LEASE FOR REAL PROPERTY
DATE OF LEASE LEASE No.
October 01, 2008 HSCG82- 08- L- 8N3067
THIS LEASE made and entered into this date by and between City of Corpus Christi,
whose address is 1201 Leopead Street, Corpus Christi, TX 78469 -9277, and whose interest
in the property hereinafter described is that of Owner, hereinafter called the Lessor, and the
UNITED STATES OF AMERICA, hereinafter described as the United States Coast Guard,
hereinafter called the Government:
WITNESSETH: The parties, hereto for the consideration hereinafter mentioned, covenant
and agree as follow:
1 The Lessor hereby leases to the Government the following described premises,
hereinafter referred to as the "premises ".
Site address: A show on excerpt copy of US Coast and Geographical Survey Chart
No. 523, marked Exhibit "A" dated January 1962, and incorporated by reference herein
known as Corpus Christi Channel Cut "B" West Range Front Light (ACLL 7817)
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term
beginning on January 1, 2009 through September 30, 2028, subject to termination and
renewal rights as may be hereinafter set forth.
3. CONSIDERATION: The consideration for this lease shall he S1.00, of which the
receipt and sufficiency is hereby acknowledged for the operation and maintenance of this
property to be used by Aids to Navigation equipment for the benefit of the general public
in accordance with the terms and conditions hereinafter set forth.
4. NOTICE: The Government may terminate this lease. for cause. at any time by giving at
least thirty (30) days notice in writing to the Lessor and no rental shall accrue after the
effective date of termination. Said notice shall be computed commencing from the date
of receipt of termination notice. The Lessor may terminate this lease at any time by
giving at least ninety (90) days notice in writing to the Government. Said notice shall be
computed commencing from the date of receipt of termination notice.
STANDARD FORM 2
FEBRUARY 1965 EDITION
HSCG82- 08- L- 8N3067
5. This lease will continue (14 U.S.C. § 672) with the same terms and conditions, unless
and until the Government shall give notice of termination in accordance with paragraph
4, provided that adequate appropriations are available from year to year for payment of
rentals, and provided further that this lease shall in no event extend beyond September
30, 2028.
6. A Supplemental Agreement will be utilized to make changes /adjustments to this lease.
7. TAX IDENTIFICATION: All leases must include either a nine -digit Federal Tax
Identification number or a Social Security number. Please indicate below:
Name of Lessor: City of Corpus Christi Tax ID number: 74- 6000574
Telephone number: (361) 826 -3516 (Citv Property Mar office)
8. COMPLIANCE WITH APPLICABLE LAW: The Lessor shall comply with all
Federal, State, and local laws applicable to the Lessor as Owner or Lessor, or both, of the
Premises, including, without limitation, laws applicable to the construction, ownership,
alteration or operation thereof, and will obtain all necessary permits, licenses and similar
items at Lessor's expense. The Government will comply with all Federal, State, and
local laws applicable to and enforceable against it as a tenant under this lease; provided
that nothing in this lease shall be construed as a waiver of any sovereign immunity of the
Government. This lease shall be governed by Federal law.
9. MAILING: Mailing refers to Certified Mail with return receipt and the date of
acceptance being the start date.
10. CHANGE OF OWNERSHIP NOTIFICATION: Lessor will notify Government
within thirty (30) days of any transfer of ownership of the described property; or change
in payment mailing address.
11. SUCCESSORS BOUND: The lease shall bind, and inure to the benefit of, the parties
and their respective heirs, executors, administrators, and successors.
12. INDEMNIFICATION: The Government, in the manner and to the extent provided by
Federal Tort Claims Act (28 U.S.C. § 2671 - 2680), as amended), shall be liable for, and
shall hold the Lessor harmless from claims for damage or loss of property, personal
injury or death caused by the act or omissions of the Government, its officers, employees
and agents in the use of the leased premises.
13. INGRESS/EGRESS: Lessor hereby grants to the Government, its contractors and other
duly assigned personnel, the right of ingress and egress (both vehicular and pedestrian)
necessary or convenient for the installation, use, maintenance, repair, operation, and
replacement of Government owned equipment across Lessor's property.
STANDARD FORM 2
FEBRUARY 1965 EDITION
2 HSCG82- 08- L- 8N3067
—103—
14. GOVERNMENT INSPECTION: The Government reserves the right, at any time after
the lease is signed and during the term of the lease, to inspect the leased premises and all
other areas of the building to which access is necessary to ensure a safe and healthy work
environment for the Government tenants and the Lessor's performance under this lease.
15. PERFORMANCE FAILURE: If Lessor fails to cure or remedy any failure to perform
any service, to provide any item, or meet any requirement of the lease within thirty (30)
days of Governments written notice to Lessor, Government may deduct any cost incurred
for the service or item, including administrative costs, from rental payments or
Government may perform the service, provide the item, or meet the requirement, either
directly or through a contract.
16. ANTI- DEFICIENCY ACT (31 U.S.C. § 1341, as amended): Nothing in this lease shall
constitute an obligation of funds of the United States in advance of an appropriation
thereof.
17. INSURANCE: The Government is a self - insured entity.
18. TAXES AND ASSESSMENTS: The Government is not responsible or liable for any
real property or personal property taxes, personal taxes, nor assessments levied or
assessed upon or against the leased premises.
19. CONDITION OF USE: The Government is responsible for meeting all applicable
Federal, State and local safety and other codes, and for obtaining all applicable Federal,
Sate and local permits, licenses, or other authorization required for operation of its
equipment.
20. EQUIPMENT INSTALLATIONS, MAINTENANCE, INTERFERENCE, AND
REMOVAL: The Government is solely responsible for all costs connected with the
installation and maintenance of all Government owned equipment located on the leased
Premises. Installation and operation of Government equipment shall be done according
to applicable Government codes and accepted industry standards.
21. WARRANTY: Lessor makes no warranty, express or implied, as to the suitability of the
leased Premises for the Government's intended use or purpose and expressly disclaims
any such warranty.
22. SUBLETTING /ASSIGNMENT: Government may not sublet or assign the leased
Premises.
23. LEASE ADMINISTRATION: Administration of subject lease will be accomplished
by: Commander (rp), US Coast Guard, Civil Engineering Unit Miami, 15608 SW 117
Avenue, Miami, Florida 33177, Telephone: (305) 278 - 6717..
24. SEVERABILITY: If any term or provision of this lease is held invalid or
unenforceable, the remainder of this lease shall not be affected thereby and each term
and/or provision hereof shall be valid and enforced to the fullest extent permitted by law.
STANDARD FORM 2
FEBRUARY 1965 EDITION
3 HSCG82- 08- L- 8N3067
—104—
25. DISPUTES (DEC 1998): This contract is subject to the Contract Disputes Act of 1978,
as amended (41 U.S.C. § 601 -613). Except as provided in the Act, all disputes arising
under or relating to this contract shall be resolved under this clause.
a. "Claim ", as used in this clause, means a written demand or written assertion by
one of the contracting parties seeking, as a matter of right, the payment of money
in a sum certain, the adjustment or interpretation of contract terms, or other relief
arising under or relating to this contract. A claim arising under a contract, unlike
a claim relating to that contract, is a claim that can be resolved under a contract
clause that provides for the relief sought by the claimant. However, a written
demand or written assertion by the Contractor seeking the payment of money
exceeding $100,000 is not a claim under the Act until certified as required by
subparagraph (b) (2) of this clause. A voucher, invoice, or other routine request
for payment that is not in dispute when submitted is not a claim under the Act.
The submission may be converted to a claim under the Act, by complying with
the submission and certification requirements of this clause, if it is disputed as to
either liability or amount or is not acted upon in a reasonable time.
b. (1) A claim by the Contractor shall be made in writing and, unless otherwise
stated in this contract, submitted within six (6) years after accrual of the claim to
the Contracting Officer for a written decision. A claim by the Government
against the Contractor shall be subject to a written decision by the Contracting
Officer.
(2) (i) The Contractor shall provide the certification specified in paragraph (d) (2) (iii)
of this clause when submitting any claim exceeding $100,000.
(ii) The certification requirement does not apply to issues in controversy that have not
been submitted as all or part of a claim.
(iii) The certification shall state as follows: "I certify that the claim is made in good
faith; that the supporting data are accurate and complete to the best of my knowledge
and belief; that the amount requested accurately reflects the contract adjustment for
which the Contractor believes the Government is liable; and that I am duly authorized
to certify the claim on behalf of the Contractor."
(3) The certification may be executed by any person duly authorized to bind the
Contractor with respect to the claim.
c. For Contractor claims of $100,000 or less, the Contracting Officer must, if
requested in writing by the Contractor, render a decision within sixty (60) days of
the request. For Contractor- certified claims over $100,000, the Contracting
Officer must, with sixty (60) days, decide the claim or notify the Contractor of the
date by which the decision will be made.
STANDARD FORM 2
FEBRUARY 1965 EDITION
4 HSCG82- 08- L- 8N3067
—105—
d. The Contracting Officer's decision shall be final unless the Contractor appeals or
files a suit as provided in the Act.
e. If the claim by the Contractor is submitted to the Contracting Officer or a claim
by the Government is presented to the Contractor, the parties, by mutual consent,
may agree to use alternative dispute resolutions (ADR). If the Contractor refuses
an offer for ADR, the Contractor shall inform the Contracting Officer, in writing,
of the Contractor's specific reasons for rejecting the offer.
f. The Government shall pay interest on the amount found due and unpaid from (1)
the date that the Contracting Officer receives the claim (certified, if required), or
(2) the date that payment otherwise would be due, if that date is later, until the
date of payment. With regard to claims having defective certifications, as defined
in FAR 33.21, interest shall be paid from the date that the Contracting Officer
initially receives the claim. Simple interest on claims shall be paid at the rate,
fixed by the Secretary of the Treasury as provided for in the Act, which is
applicable to the period during which the Contracting Officer receives the claim
and then at the rate applicable for each six (6) month period as fixed by the
Treasury Secretary during the pendency of the claim.
26. ASSIGNMENT OF CLAIMS (JAN 1986): a. The Contractor, under the Assignment
of Claims Act, as amended, 31 U.S.C. § 3727, 41 U.S.C. § 15 (hereafter referred to as
"the Act "), may assign its right to be paid amounts due or to become due as a result of
the performance by contract to a bank, trust company, or other financing institution,
including any Federal lending agency. The assignee under such an assignment may
thereafter further assign, reassign, or reassign its right under the original assignment to
any type of financing institution described in the preceding sentence.
b. Any assignment or reassignment authorized under the Act and this clause shall cover
all unpaid amounts payable under this contract, and shall not be made to more than one
party, except that an assignment or reassignment may be made to one party as agent or
trustee for two or more parties participating in the financing of this contract.
c. The Contractor shall not furnish or disclose to any assignee under this contract any
classified documents (including this contract) or information related to work under this
contract until the Contracting Officer authorizes such in writing.
(i) When the date for commencement of rent falls on the 15th day of the month or
earlier, the initial monthly rental payment under this contract shall become due on
the first workday of the month following the month in which the commencement
of the rent is effective.
(ii) When the date for commencement of rent falls after the 15th day of the month, the
initial monthly rental payment under this contract shall become due on the first
workday of the second month following the month in which the commencement
of the rent is effective.
STANDARD FORM 2
FEBRUARY 1965 EDITION
5 HSCG82- 08- L- 8N3067
—106—
27. This lease incorporates by reference the applicable clauses in GSA Form 3517A
( "General Clause "), with the same force and affect as if they were given in full text.
Upon request, the Government will make the full text available or the full text may be
found at http: / /www,asa. aov/leasingform
28. This lease supersedes Permit No. Lease 08- 020 -62, which was negotiated with an
indefinite term.
IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names as of the
date first above written.
LESSOR:
BY
(Signature) (Official title)
IN PRESENCE OF:
(Signature) (Address)
UNITED STATES OF AMERICA DEPARTMENT OF HOMELAND SECURITY / US COAST GUARD
BY: Anna Perez - Giuliani, Realty Specialist.
(Signature) (Official title)
STANDARD FORM 2
FEBRUARY 1965 EDITION
6 HSCG82- 08- L- 8N3067
—107—
ORDINANCE
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO LEASE
REAL PROPERTY TO THE UNITED STATES COAST GUARD
FOR $1.00 A YEAR FOR A TERM OF NINETEEN YEARS, NINE
MONTHS (BEGINNING ON JANUARY 1, 2009 AND ENDING ON
SEPTEMBER 30, 2028) IN CONNECTION WITH A NAVIGATION
MARKER MOUNTED ON THE EAST WALL OF THE SOUTH
TEXAS INSTITUTE FOR THE ARTS BUILDING, AN AID TO
NAVIGATION (ATON) STRUCTURE KNOWN AS THE "CORPUS
CHRISTI CHANNEL CUT 'B' WEST RANGE FRONT LIGHT (ACLL
7817) "; AND PROVIDING FOR PUBLICATION.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. The City Manager or designee is authorized to execute a
lease and all related documents to the U.S. Government (United States Coast
Guard) for $1.00 a year for a twenty -year term (from January 1, 2009 to
September 30, 2028) in connection with a navigation marker or Aid to Navigation
(ATON) mounted on the east wall of the South Texas Institute for the Arts Building
and known as the "Corpus Christi Channel Cut 'B' West Range Front Light (ACLL
7817)."
SECTION 2. Publication shall be made as required under § 3, Article IX of
the City Charter of the City of Corpus Christi.
ATTEST:
Armando Chapa
City Secretary
Approved as to form: 1 - Sep -08
Veronica Ocanas
Assistant City Attorney
For City Attorney
092308 ORD 20 -yr lease to USCG
CITY OF CORPUS CHRISTI
Henry Garrett
Mayor
—108—
That the foregoing ordinance was read for the first time and passed to its second
reading on this the _ day of , 2008, 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
That the foregoing ordinance was read for the second time and passed finally on
this the day of , 2008, by the following vote:
Henry Garrett
Melody Cooper
Larry Elizondo, Sr.
Mike Hummell
Bill Kelly
PASSED AND APPROVED on this the
ATTEST:
Armando Chapa
City Secretary
092308 ORD 20 -yr lease to USCG
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
day of
, 2008.
Henry Garrett
Mayor, the City of Corpus Christi
-109-
8
CITY COUNCIL
AGENDA MEMORANDUM
City Council Action Date: September 23, 2008
AGENDA ITEM: AMENDING THE CODE OF ORDINANCES, CITY OF CORPUS
CHRISTI, CHAPTER 55 REGARDING RULES AND PROCEDURES FOR PUBLIC
ACCESS CABLECASTING, REGARDING PROGRAM DELIVERY DEADLINE TIME;
PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION.
ISSUE: Public access producers are required to drop off their programs at the place
designated by the public access user group (PAUG) by certain day and time. Then each
PAUG is responsible to gather the programs and deliver them to the cable operator facility
by certain date and time. Recently, the City Council approved an ordinance to change
public access channel program delivery deadline from Friday to Wednesday. The
ordinance needs to be amended to clarify that the deadline time for producers to drop off
the programs at the designated PAUG location is 10:00 a.m., Wednesday, and not 11:30
a.m., Wednesday. The deadline for PAUG delivery of the tapes to the cable operator
facility remains 11:30 a.m., Wednesday. The Cable Communication Commission
approved this request at their meeting on Monday, September 15, 2008.
REQUIRED COUNCIL ACTION: Passage of the ordinance.
PREVIOUS COUNCIL ACTION: On June 24, 2008, the City Council approved Ordinance
No. 027743 regarding a change in program delivery deadlines.
FUNDING: The ordinance amendment requires no expenditure of funds.
COl LUSION AND RECOMMENDATION: Approval of the ordinance as presented.
0
Kim Womack
Director of Public Information
Annie Leal
Interim Director, E- Govemment Services
—113—
1
AN ORDINANCE
AMENDING THE CODE OF ORDINANCES, CITY OF CORPUS
CHRISTI, CHAPTER 55 REGARDING RULES AND PROCEDURES
FOR PUBLIC ACCESS CABLECASTING REGARDING PROGRAM
DELIVERY DEADLINE TIME; PROVIDING FOR SEVERANCE;
PROVIDING FOR PUBLICATION.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. Article XVIII of Chapter 55 of the Code of Ordinances is amended by
revising Exhibit A, Rules and Procedures for Public Access Cablecasting, Section 6,
Violations of rules, subsection b, Forfeit of Use of Public Access Channels, to read as
follows:
"b. Forfeit of Use of Public Access Channels
Lottery periods begin the first Sunday in June and in December. At the lottery, PAUGs
will establish a designated location for producers to deliver weekly and monthly media.
Media for the first program in a lottery period must be delivered to the designated
location before 10:00 a.m. on the Wednesday before
the first Sunday in the new lottery period. Following the first media delivery of the lottery
period, cut -off time for delivery of media for weekly programs is 11:30 a.m. 10:00 a.m.
on Wednesdays each week. Cut -off time for delivery of media for monthly programs is
11:30 a.m. 10:00 a.m. on the Wednesdays before the first Sunday of each month."
SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase,
word or provision of this ordinance shall be held invalid or unconstitutional by final
judgment of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the
definite intent of this City Council that every section, paragraph, subdivision, clause,
phrase, word or provision of this ordinance be given full force and effect for its purpose.
SECTION 3. Publication shall be made in the official publication of the City of Corpus
Christi as required by the City Charter of the City of Corpus Christi.
SECTION 4. This Ordinance takes effect upon final passage.
H:\LEG- DIR\Lisa\2008 ORDINANCES\PublicAccessfllis -September 30 2008.DOC
That the foregoing ordinance was read for the first time and passed to its second
reading on this the day of , 2008, by the following vote:
Henry Garrett Priscilla G. Leal
Melody Cooper John E. Marez
Larry Elizondo, Sr. Nelda Martinez
Mike Hummell Michael McCutchon
Bill Kelly
That the foregoing ordinance was read for the second time and passed finally on this
the day of , 2008, by the following vote:
Henry Garrett Priscilla G. Leal
Melody Cooper John E. Marez
Larry Elizondo, Sr. Nelda Martinez
Mike Hummel) Michael McCutchon
Bill Kelly
PASSED AND APPROVED, this the day of , 2008.
ATTEST:
Armando Chapa
City Secretary
APPROVED as to form: September 17, 2008
By:
Lisa Aguilar '✓
Assistant City Attorney
For City Attorney
—115—
Henry Garrett
Mayor
AGENDA MEMORANDUM
PUBLIC HEARING — ZONING (City Council Action Date: September 23, 2008)
Case No. 0808 -03, Southside Paint and Body, LLC: A change of zoning from a "B -4" General Business District to a "1.2" Light
Industrial District resulting in a change of land use from commercial to light industrial for an automotive paint and body repair shop on
property described as Saratoga Weber Plaza Block 7, Lot 12, located at 3902 Acushnet Street, approximately 500 feet west of the Weber
Road and Acushnet Street intersection
Planning Commission & Staff's Recommendation (August 20, 20081
Denial of the "1 -2" Light Industrial District and in- lieu - thereof approval of a Special Permit for "automobile repair, heavy" uses without
outdoor storage on the subject property, and subject to a site plan and the following seven (7) conditions:
1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the `B -4" General Business
District is a paint and body shop heavy automobile repair use.
2. Hours of Operation: The operation of the automotive paint and body repair shop shall be limited to the hours between 7:30
AM and 6:00PM.
3. Screening: A standard screening fence with a minimum height of sfx (6J feet shalt be located along the north, east and west
boundary lines of this Special Permit. The screening fence must be installed within one (1) year of the date of this ordinance.
4. Orientation of Doors: Rollup or retractable doors shall not face Acushnet Drive.
5. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning Ordinance.
6. Lighting: All security lighting must be directional and shielded, be directed away from adjacent residences, and light poles
must be no higher than 15 feet. Cutoff shields are required for all lighting. No lighting is permitted to project beyond the
property line adjacent to residential development.
7. Time Limit: This Special Permit expires two (2) years from the date of this ordinance, unless the property is being used as
outlined in Condition #1 and in compliance with all other conditions.
Requested Council Action: Approval of Planning Commission's & Staffs Recommendation.
Staffs Summary:
• Request: The applicant has requested that the 0.99 acre lot be rezoned from "B-4" General Business District to an "I -2"
Light Industrial District in order to allow for an automobile paint and body shop.
• Zoning: The "B -4" General Business District is intended to accommodate a full range of commercial uses including retail,
personal service uses and mini - storage facilities. The "B -4" District requires a twenty (20) foot front yard setback and ten
(10) foot side and rear yard setbacks for buildings when adjacent to properties zoned residentially. This district does not
require a minimum lot size and the height is unlimited.
• The purpose of the "1-2" Light - Industrial zoning district is to provide for a wide variety of light manufacturing uses, open
storage, fabrication, warehousing, and wholesale distributing. Specifically, auto paint and body repair is permitted use
with the "I -3" District. Setbacks required in the "1 -2" District include a minimum twenty (20) foot front yard setback and
no side or rear yards setbacks unless adjacent to a residential district, then ten (10) feet is required.
• Existing Land Uses: The subject property is currently vacant land. Properties to the east and west are vacant, property to
the north is used for mini - storage units and property to the south is an apartment complex.
• Utilities: An 8 -inch water and an 8 -inch sewer line is available in Acushnet Drive.
• Transportation: The subject property is adjacent to Acushnet Drive a designated C -1 Collector Street.
• Comprehensive Plan Consistency: The future land map recommends commercial use for the subject property and
therefore the proposed rezoning to industrial use is not consistent with the adopted Future Land Use Plan. Industrial uses
would negatively impact the multi - family uses located to the south of the subject property. The subject property is located
in the Southside Area Development Plan. The comprehensive plan identifies policy statements for land use decisions.
City Charter requires rezoning to be consistent with the Comprehensive Plan (see attached City Charter Section V-
Planning.) Approval of the rezoning will amend the Comprehensive Plan. Several policy statements are available in the
Corpus Christi Policy Statements as well as the Southside Area Development Plan to ensure consistency of zone change
requests with the Comprehensive Plan:
-119-
Agenda Memorandum
Case No. 0808 -03 (Southside Paint and Body, LLC)
Page 2
Corpus Christi Policy Statements:
• Land Use Commercial, Policy d. EXPANSION OF COMMERCIAL USES INTO OR WITHIN RESIDENTIAL
AREAS MAY BE PERMITTED ONLY IF SUCH EXPANSION MAINTAINS OR IMPROVES THE
RESIDENTIAL DESIRABILITY OF THE IMPACTED NEIGHBORHOODS.
Commercial development in residential areas may be allowed in situations where proponents of such change can
demonstrate how rezoning changes will benefit the impacted neighborhood and the community.
Staff Comment: Any rezoning to nonresidential uses should complement the existing or planned residential area. Where
the effects of the commercial or industrial use will negatively impact the adjacent residential used property the appropriate
city response is to protect the residential area by mitigating the impacts of the proposed non - residential use and or denial the
of the proposed rezoning.
• Land Use Commercial Policy h. COMMERCIAL SERVICE AREAS DESIGNED TO SERVE LOCAL
NEIGHBORHOODS SHOULD BE CONVENIENTLY LOCATED AND IN HARMONY WITH THE
SURROUNDING NEIGHBORHOOD.
Staff Comment: Uses that serve surrounding residential areas should be located at sites that promote and encourage
pedestrian traffic while they maintain good vehicular access. Because of the proximity of these businesses to residential
neighborhoods, parking, signs, lighting fixtures, and landscaping must be designed harmoniously with nearby residential
areas.
Southside Area Development Plan (ADP) Policy Statements:
• B.6 - POLICY STATEMENT
High- intensity commercial and industrial areas should be buffered to provide transition
from low- density residential areas through the existence of:
A) Main roads;
B) Public and institutional buildings;
C) Open space;
D) Scale of design; and
E) Other transitional land uses.
Staff Comment: Roads, open spaces, landscaping buffers, building orientation and building placement on the property can
combine to provide a compatible arrangement of uses that would ordinarily be incompatible.
Notification: Of the eight (8) notices mailed to the surrounding property owners one (1) notice was returned in favor and zero (0)
were returned in opposition. The 20% rule is not invoked. This case is considered noncontroversial. State law 20% rule is
invoked when property owners who own 20% of the land within the 200 foot radius of the subject property are opposed.
Invoking the 20% rule requires a three - quarters favorable vote of the City Council for a change of zoning to be approved,
rather than a simple majority. Unless such proposed change is approved by the Planning Commission such change shall not
become effective except by a favorable vote of a majority plus one of the City Council present and voting.
FGM/blp
Attachments:
1) Zoning Report
2) Planning Commission Minutes (August 20, 2008)
3) Ordinance
Bob Nix, AICP
Assistant City Manager of Development Services
PIM/Project Manager
SrCP /CP
Planning Director
H:PLN- DIR\SHARED\Beverlyt2008 CCWug'0S 0808- 03AGENDAMEMO.doc
-120-
CITY COUNCIL
ZONING REPORT
Case No.: 0808 -03
City Council Hearing Date: September 23, 2008
Applicant &
Legal
Description
Applicant: Southside Paint and Body, LLC
Owner: Same as applicant.
Representative: Urban Engineering
Address: 3902 Acushnet Drive, Corpus Christi, Texas, 78413
Legal Description/Location: Saratoga Weber Plaza Block 7, Lot 12, located at 3902 Acushnet
Street, approximately 500 feet west of the Weber Road and Acushnet Street intersection
Zoning
Request
From: `B -4" General Business District
To: "I -2" Light Industrial District
Area: 0.990 acres / 43,526 sf
Purpose of Request: To allow for the zoning use defined as "Automobile Repair, Heavy" which
includes auto paint and body repair.
Existing Zoning and Land
Uses
Zoning
Existing Land Use
Future Land Use
Site
"B-4" General Business
District
Commercial
Commercial
North
"B-4" General Business
District
Commercial
Commercial
South
"B-4" General Business
District
Apartment Complex
Commercial
East
"B-4" General Business
District
Vacant
Commercial
West
"B-4" General Business
District
Vacant
Commercial
ADP, Map &
Violations
Area Development Plan: The proposed rezoning to the "I -2" Light Industrial District is not
consistent with the adopted Future Land Use Plan designation of commercial uses. The `B -4"
District does not allow "Automotive Repair, Heavy" uses defined in the Zoning Ordinance. The
"B-4" District allows "Automotive Repair, Minor and Major" that includes maintenance and
repair uses up to auto engine overhaul but does not allow "Automotive Repair, Heavy ". The
subject property is located in the Southside Area Development Plan Study area.
Map No.: 047035
Zoning Violations: None
—121—
Zoning Report
Case No. 0808 -03 Southside Paint and Body, LLC
Page 2
Staff's Summary:
• Request: The applicant has requested that the 0.99 acre lot be rezoned from "B-4" General Business
District to a "I -2" Light Industrial District in order to allow for an automobile paint and body shop.
• Zoning: The `B -4" General Business District is intended to accommodate a full range of
commercial uses including retail, personal service uses and mini- storage facilities. The `B -4"
District requires a twenty (20) foot front yard setback and ten (10) foot side and rear yard setbacks
for buildings when adjacent to properties zoned residentially. This district does not require a
minimum lot size and the height is unlimited.
• The purpose of the "I -2" Light - Industrial zoning district is to provide for a wide variety of Light
manufacturing uses, open storage, fabrication, warehousing, and wholesale distributing.
Specifically, auto paint and body repair is permitted use with the "I -3" District. Setbacks required in
the "I -2" District include a minimum twenty (20) foot front yard setback and no side or rear yards
setbacks unless adjacent to a residential district, then ten (10) feet is required.
• Existing Land Uses: The subject property is currently vacant land. Properties to the east and west
are vacant, property to the north is used for mini - storage units and property to the south is an
apartment complex.
• Utilities: An 8 inch water and an 8 inch sewer line is available in Acushnet Drive.
• Transportation: The subject property is adjacent to Acushnet Drive a designated C -1
Collector Street.
• Comprehensive Plan Consistency: The future land map recommends commercial use for
the subject property and therefore the proposed rezoning to industrial use is not consistent
with the adopted Future Land Use Plan. Industrial uses would negatively impact the multi-
family uses located to the south of the subject property. The subject property is located in the
Southside Area Development Plan. The comprehensive plan identifies policy statements for land
use decisions. City Charter requires rezoning to be consistent with the Comprehensive Plan (see
attached City Charter Section V- Planning.) Approval of the rezoning will amend the Comprehensive
Plan. Several policy statements are available in the Corpus Christi Policy Statements as well as the
Southside Area Development Plan to ensure consistency of zone change requests with the
Comprehensive Plan:
Corpus Christi Policy Statements:
• Land Use Commercial, Policy d. EXPANSION OF COMMERCIAL USES INTO OR WITHIN
RESIDENTIAL AREAS MAY BE PERMITTED ONLY IF SUCH EXPANSION MAINTAINS
OR IMPROVES THE RESIDENTIAL DESIRABILITY OF THE IMPACTED
NEIGHBORHOODS.
Commercial development in residential areas may be allowed in situations where proponents of such
change can demonstrate how rezoning changes will benefit the impacted neighborhood and the
community.
-122-
Zoning Report
Case No. 0808 -03 Southside Paint and Body, LLC
Page 3
Staff Comment: Any rezoning to nonresidential uses should complement the existing or planned
residential area. Where the effects of the commercial or industrial use will negatively impact the
adjacent residential used property the appropriate city response is to protect the residential area by
mitigating the impacts of the proposed non - residential use and or denial the of the proposed rezoning.
• Land Use Commercial Policy h. COMMERCIAL SERVICE AREAS DESIGNED TO SERVE
LOCAL NEIGHBORHOODS SHOULD BE CONVENIENTLY LOCATED AND IN
HARMONY WITH THE SURROUNDING NEIGHBORHOOD.
Staff Comment: Uses that serve surrounding residential areas should be located at sites that promote
and encourage pedestrian traffic while they maintain good vehicular access. Because of the proximity
of these businesses to residential neighborhoods, parking, signs, lighting fixtures, and landscaping
must be designed harmoniously with nearby residential areas.
Southside Area Development Plan (ADP) Policy Statements:
• B.6 - POLICY STATEMENT
High- intensity commercial and industrial areas should be buffered to provide transition
from low- density residential areas through the existence of:
A) Main roads;
B) Public and institutional buildings;
C) Open space;
D) Scale of design; and
E) Other transitional land uses.
Staff Comment: Roads, open spaces, landscaping buffers, building orientation and building
placement on the property can combine to provide a compatible arrangement of uses that would
ordinarily be incompatible.
Street R.O.W.
Street
Urban
Transportation Plan
Type
Existing ROW
and Paved
Section
Planned ROW
and Paved
Section
Traffic Volume
Weber Road
A -2 Secondary
Arterial
100 feet with 64
feet of pavement
four lanes with a
center turn lane
100 feet, with 54
feet of pavement
with four lanes
and a 16 foot
median
2006
13,754
Acushnet
Drive
C -1 Minor Collector
60 feet with 24
feet of pavement
no curb or gutter
60 feet, with 40
feet back of curb
to back of curb
None Available
Plat Status:
The subject property is platted
—123—
Zoning Report
Case No. 0808 -03 Southside Paint and Body, LLC
Page 4
.Department Comments:
• Placement of the buildings so that the shop areas face the sides or rear of the site will mitigate the
negative impacts of noise and visual impact to the apartment uses across Acushnet Drive.
• A special permit tied to a site plan may be appropriate for this site in order to create the appropriate
transition from commercial uses north of Acushnet and the residential uses south of Acushnet.
• The applicant is agreeable to a special permit which would prevent some of the more offensive uses
contained in the "I -2" District, such as out door storage.
Staff Recommendation:
Denial of the "I -2" Light Industrial District and in -lieu- thereof approval of a Special Permit for
"automobile repair, heavy" uses without outdoor storage on the subject property, and subject to a site plan
and the following seven (7) conditions:
1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in
the `B-4" General Business District is a paint and body shop heavy automobile repair use.
2. Hours of Operation: The operation of the automotive paint and body repair shop shall be
limited to the hours between 7:30 AM and 6:00 PM.
3. Screening: A standard screening fence with a minimum height of six (6) feet shall be located
along the north, east and west boundary lines of this Special Permit. The screening fence must be
installed within one (1) year of the date of this ordinance.
4. Orientation of Doors: Rollup or retractable doors shall not face Acushnet Drive.
5. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning Ordinance.
6. Lighting: All security lighting must be directional and shielded, be directed away from adjacent
residences, and light poles must be no higher than 15 feet. Cutoff shields are required for all
lighting. No lighting is permitted to project beyond the property line adjacent to residential
development.
7. Time Limit: This Special Permit expires two (2) years from the date of this ordinance, unless the
property is being used as outlined in Condition #1 and in compliance with all other conditions.
Planning Commission Recommendation:
Approval of Staff's Recommendation
Number of Notices Mailed — 7 within 200 foot notification area; 1 outside notification area
Favor — 1 (inside notification area); 0 (outside notification area)
*Opposition — 0 (inside notification area); 0 (outside notification area); 0.0%
opposed
(As of September 2, 2008)
—124—
Zoning Report
Case No. 0808 -03 Southside Paint and Body, LLC
Page 5
Attachments: A. Site Plan
1. Neighborhood — 2006 Aerial
2. Neighborhood — Existing Land Use
3. Neighborhood — Future Land Use
4. Site — 2006 Aerial
5. Subject Property
6. Site — Existing Zoning, Notice area, Ownership
7. Comments received from Public Notices mailed
8. Notice Mailing List
9. District Uses
10. City Charter — Article V- Planning
-125-
Zoning Report
Case No. 0808 -03
Page 6
Attachment
Southside Paint and Body, LLC
P1: Site Plan
1.00'0sr wm..yyn- 3 oc,ae MS
u•xzw - V ssazw
MOO
001•0
05•0
—126—
00t +0
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PAVING AND GRADING PLAN
CASE # 0808 -03
1. NEIGHBORHOOD - 2006 AERIAL
Subject
ra=rer to Map --:'
cctexac ',m
Lioc'4TmN MA P
City o'
l orpiis
CASE # 0808 -03
1. NEIGHBORHOOD - 2006 AERIAL
La Subject
R =!er to Map 2 N. -, -.
CASE # 0808 -03
2. NEIGHBORHOOD - EXISTING LAND USE
Estate Residential - ER
- Low Density Residential. - LDR
Med Density Residential. - MDR
Li-`z High Density Residential. - HDR
Mobile Home - MH
IVNGI Vacant -VAC
T ofe Iona! Office - PO
'-
mmercial - COM
-'J ighr .Industrial - LI
7Th Heavy L:dusMat -HI
^;nl Public Semi- Public -PSP
�7 I Cityoi
Corpus
[LOC'ATIOIV 1try'AP .i i' Chrkii
. /
"v • •
4U5JECT /
PRGPEi.e
CASE # 0808 -03
2. NEIGHBORHOOD - EXISTING LAND USE
LF - ] E 'ate Residential. - ER
- I Low Density Residential. - LDR
d Density ResidentiaL - MDR
LL i. Density Residential.- HDR
%I bile Home -MH
nt - VAC
i ssiona/ Office - PO
cr. mmercial - COM
Light Industrial - LI
leavy Industrial - HI
�'^ I 'ublic Semi-Public - PSP
CASE # 0808-03
3. NEIGHBORHOOD - FUTURE LAND USE
f z' 1 AgnculturalfRmal -AR jr-';?! Tuurist - TOR
LrAYI Estate Residents. d -EP IRnp! Research /Business Park - RBP
1 ow Density Res. - ! nR En Light Industrial - LI
ivied Density Re -M6' 1 1 Heavy industrial - Hl
"ter lI High Density Res. - HC J '',1 Public Semi - Public - PSP
r Air -'i roGtbile Home - I n Park
['ACI Vacant - VAC 1 nc J Drainage Corridor -DC
Professional Office - PO PP Dredge Placement -DP
[r^1 Commercial - COM [ water
1 CP1 Conservation /Preservation - CP
Transportation Plan
Co,iecrors
Express:vays _ _ _ _.
Parkway
Railroad
suB.tE f..T
PPOPEPry
Ci:v al
Corpus
[.oc'4TIOIV 1try'A 1'
Li
CASE # 0808 -03
3. NEIGHBORHOOD - FUTURE LAND USE
cR 1 '\,;ricultur.aIIRura! -AR r'v', ✓: T: 'milt TOR
0- I - tate Residential - ER earchlBusiness Park - RBP
w nsity Res. - LD! ti Industrial - LI
d D ;ity Res. - MDR y Industrial - Hl
Density Res. - NOR ` :emi- Public - PSP
one Home -MH I-1 ? =nk
rant - VAC [ oc ^; alnage Corridor - DC
Professional Office - PO u D; edge Placement- DP
Commercial - CCM .,o !later
Conservation/Presentation - CP
Transportation Plan
F, +nosna
Arterials
Collectors
Expr eksways ____.
Parkway
++l+F Railroad
'MDR
' p0n
a OM
MGR
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CDR
COn
000
stIBJECT
PP0PEPrl
LLOCATIOIv MAP
(iv or
Corpus
Ch ri -11
CASE # 0808 -03
4. SITE- 2006 AERIAL
Subject
Property
Refer to Map 2 for Neighborhood
Existing Land Use. Also available
at
www.cctexas.com
4 /SP >03 -05
A N'i6 E''PLAZA
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FART OF LOT
13 C�92
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CASE # 0808 -03
5. SUBJECT PROPERTY
SIJ£JECT
PROPERTY
LOCATION MAP
4/ SP >O3 =05
A Wt6E''PLAZA
/ 2A /
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2 iI 3a
ON�+RESS RLA
ARATOOR
R P -LAZl.
ER PLAZA.
s
FART OF LOT
C) 12
ENTRY
ST
CASE # 0808 -03
6. SITE - EXISTING ZONING,
NOTICE AREA & OWNERSHIP'
AJ 'Apartment House District 1-1 Limped industrial Di3M31
A-1A 332rt333 pouts 86Vlq 1-2 Light S rkisIn313Sp4t
• Apertrhent Hobe 033 c 1.. Wer}1113__91 ml 015ti ict
A2 PNessalal Olfie as PJD Planned Una Da,elopM£nY
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3-1 N3ighborliC,d B511653 D atilt
3.3 B833 ont Eustheas std
323, Barr,- Island Pun=ss Dlstrd
3s esna,8 DiStitt
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9-3 Primmy Bushes DIlVIH
3.3 es re C3I I:t.
£D C pu_= Cnrsl B acfi 055133 DIsl
5313 Rural Dlelnt
H C Hisloi5a- Guttural Lansmai:
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R13 One FaNlyDwelling Dtanfl.
R 13 0lQFgm0.y D eiling Dlsfilrt
RI 4s Fr1i,:[Meiling D.tSe
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RA Cne FAmlfD ellin3 Di3t551
RE Raedenllal EltaIE Dislrct
RUTH Taonho. se Dbeiling ash et
SP Sp e:331 Permit
T-1 F I ia.ei Tidiler Pan DEsinici
T15 tv1znufacturea Horne P ik District-
T-1 1' 3f3ctur3c1 Home SubSMislon
Banc
&infect Property Ov
m 00 butte, 0t /avt..
A 0 .3,a, n,thin 200- e �# 0 e55
d erspa :Mite T4 nn opoosilan
SUBJECT - -'
PROPERTY
LOCATION MAP
COMMENTS RECEIVED
FROM PUBLIC NOTICES MAILED
Case No: 0808 -03
Name: Southside Paint and Body, LLC
Circled = FAVOR X = OPPOSED
(Note: The number(s) next to name corresponds to the attached map.)
Total number mailed:
Returned undeliverable:
8
0
I. Notices returned from within the 200 -foot notification area:
Favor: 1
Opposition: 0
#4, Jose & Hector Sanchez, 2525 Wool Drive, "We will have an
automotive business as well next to Southside Paint and Body, LLC
shop."
II. Responses received from outside the 200 -foot notification area:
Favor: 0
Opposition: 0
III. Responses received from owners /applicants of subject area:
Favor: 0
Opposition: 0
IV. Unsolicited responses received concerning subject area:
Favor: 0
Opposition: 0
H *PLN- DIR\SHARED\Beverly \2008 PC\2008 Public-446M \0808-03.doc
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sE AT
- 85 -
ARTICLE 16. 91-4" GENERAL BUSINESS DISTRICT REGULATIONS
Section 16-1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in
this article, are the regulations in the 'B4" General Business District. The purpose of this district is to
provide sufficient space in appropriate locations for all types of commercial and miscellaneous service
activities, particularly along certain existing major streets where a general mixture of commercial and
service activity now exists, but which uses are not characterized by extensive warehousing, frequent heavy
trucking activity, open storage of material, or the nuisance factors of dust, odor, and noise associated with
manufacturing.
Section 16 -2 Use Regulations. A building or premises shall be used only for the following purposes:
( 1) Any use permitted in the "B-1" Neighborhood Business District.
(2) Amusement place in an enclosed building, auditorium, or theater except open air drive -in theaters.
(3) Athletic field or baseball field.
(4) Boat, automobile, motorcycle, recreation vehicle, and HUD -code manufactured home sales and
storage. (Ordinance 22851, 02/18/97)
( 5)
Sales and repair of plumbing, heating, electrical, and air conditioning equipment, and auto parts
and tire sales and service within an enclosed building. Wholesale house of not more than 6,000
square feet in floor area.
( 6) Bowling alleys and billiard parlors.
( 7) Food storage lockers.
( 8) Animal hospital with no outside runs. (Ordinance 24566, 08/28/01)
( 9) Hotels, motels, or motor hotels.
(10) On- premise freestanding and wall signs are allowed and further regulated under ARTICLE 33.
SUPPLEMENTAL SIGN REGULATIONS, PERMITS, PLATS AND FILING FEES. No
portable sign is permitted. (Ordinance 026735, 4/17/06)
(11) Printing, publishing, and engraving.
(12) Milk distributing stations, provided there is no bottling on the premises.
(13) Radio or television broadcasting stations, studios, and offices, but not sending or receiving towers.
(14) Skating rink in an enclosed building.
(15) Swimming pool or natatorium.
(16) Accessory buildings and uses, except that outside storage is not permitted.
(17) Public or governmental buildings.
(18) Mini - storage enclosed. (Ordinance 24566, 08/28/01)
02/08 B-4
-147-
- 86 -
(19) Promotional events, subject to the special conditions set forth in Article 27A, Section 27A -2 of
this Ordinance.
(20) Service station.
(21) Taverns, lounges, or bars.
(22) Automobile service, painting and body work are permitted as an accessory use within an enclosed
building when associated with auto sales establishment.
(23) Car washes.
(24) Camper shell sales and installation.
(25) Commercial parking garage.
(26) Automotive repair, major and minor, provided all work is performed inside of a building.
(27) Farmers market retail sales area as accessory use to shopping center. (Ordinance 23932, 02/08/00)
Section 16-3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22.
Section 16-4 Off - street Loading Regulations. The off-street loading regulations for permitted uses are contained
in Article 23.
Section 16-5 Height and Area Regulations. Height and area requirements shall be as set forth in the chart of
Article 24, and in addition the following regulations shall apply:
16 -5.01 There shall be a side yard not less than ten (10) feet in width on the side of a lot adjoining
an "R -1A ", "R -IB ", "R -1C" "R -2 ", "A -1 ", "A -IA ", or "A -2" residential district.
16 -5.02 There shall be a rear yard not less than ten (10) feet in depth on the rear of a lot adjoining
an "R -1A ", "R -IB ", "R -1C" "R-2", "A -1" "A -1A" or "A -2" residential district.
16-5.03 Any boats, automobiles, recreational vehicles, or manufactured homes stored or
displayed for sale shall not be permitted in the yard areas required by Article 24.
(Ordinance 22851, 02/18/97)
Section 16-6 Supplementary height, area, and bulk regulations are contained in Article 27.
02/08
-148-
- 49 -
ARTICLE 12. "B-1" NEIGHBORHOOD BUSINESS DISTRICT REGULATIONS
Section 12 -1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in
this article, are the regulations in the "B -1" Neighborhood Business District. This district provides
primarily for retail shopping and personal service uses to be developed either as a unit or in individual
parcels to serve the needs of nearby residential neighborhoods.
Section 12 -2 Use Regulations. A building or premises shall be used only for the following purposes:
( 1) Any use permitted in the "AB" Professional Office District.
( 2) Automobile parking lots.
( 3) Display room for merchandise to be sold on order where merchandise sold is stored elsewhere.
( 4) Custom dressmaking and tailoring not involving a factory, shoe repair, household appliance repair,
custom cleaning shop not involving bulk or commercial type plants, household furniture
upholstery shop accessory to retail furniture sales, and bakeries.
( 5) Fueling.
( 6) Offices and office buildings.
( 7) On- premise freestanding and wall signs are allowed and further regulated under ARTICLE 33.
SUPPLEMENTAL SIGN REGULATIONS, PERMITS, PLATS AND FILING FEES. No
portable sign is permitted within this district. (Ordinance 026735, 4/17/06)
( 8) Personal service uses including barber shops, banks, beauty parlors, photographic or artists'
studios, messengers, taxi cabs, newspaper or telegraphic service stations, dry cleaning receiving
stations, restaurants with or without alcoholic beverages (excluding taverns, lounges, or bars), and
other personal service uses of a similar character.
( 9) Retail stores, including florist shops and greenhouses in connection with such shops, but there
shall be no slaughtering of animals or poultry on the premises of any retail store, nor shucking of
oysters or processing of fish.
(10) Self - service Laundries.
(11) Undertaking business or establishment.
(12) Accessory buildings and used customarily incidental to the uses permitted in the district, except
that outside storage and outside sales area are not permitted.
(13) Hand operated or automated self - service car washes.
(14) Automotive parts sales within a building containing less than 3,000 square feet in gross area with
no service bays.
Section 12 -3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22.
Section 12 -4 Off-street Loading Regulations. The off - street loading regulations for permitted uses are contained
in Article 23.
Section 12 -5 Heigbt and Area Regulations. Height and area requirements shall be as set forth in the chart on
Article 24, and in addition the following regulations shall apply:
02/08 B-1
-149-
- 50 -
12 -5.01 There shall be a side yard not Tess than ten (10) feet in width on the side of a lot adjoining
an "R-1A", "R -IB ", "R -1C ", "R -2 ", "A -1 ", "A -1A ", or "A -2" residential district.
12 -5.02 There shall be a rear yard not less than ten (10) feet in depth on the rear of a lot adjoining
an "R -1A ", "R -1B ", "R -1C ", "R -2 ", "A -1 ", "A -1A ", or "A -2" residential district.
Section 12-6 Supplementary height and area regulations are contained in Article 27.
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ARTICLE 11. "AB" PROFESSIONAL OFFICE DISTRICT REGULATIONS
Section 11 -1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in
this article, are the regulations in the "AB" Professional Office District. This district is intended to
encourage office development of high character in attractive surroundings with types of uses and exterior
indication of these uses so controlled as to be generally compatible with single - family or multiple - family
dwellings conveniently located within or adjacent to the district.
Section 11 -2 Use Regulations. A building or premises shall be used only for the following purposes:
( 1) Any use permitted in the "R -IA" One - family Dwelling District.
( 2) Two - family dwellings other than manufactured homes. (Ordinance 22851, 02/18/97)
( 3) Multiple - family dwellings.
( 4) Boarding, rooming, and lodging houses.
( 5) Private clubs, fraternities, sororities, and lodges excepting those the chief activity of which is a
service customarily carried on as a business.
( 6) Non - profit, religious, educational, and philanthropic institutions.
( 7) Business and professional offices and office buildings provided the following conditions are met:
(a) No building may be constructed with, or altered to produce a store front, show window,
or display window;
(b) There shall be no display from windows or doors and no storage of merchandise in the
building or on the premises; and
(c) There shall be no machinery or equipment, other than machinery or equipment
customarily found in professional or business offices, used or stored in the building or on
the lot.
( 8) Clinics or hospitals including a pharmacist's shop for dispensing of drugs and medical supplies
primarily to patients or occupants of the building; provided, however, there shall be no entrance to
such shop except from inside the building and further provided that there be no exterior signs
advertising such shop except as provided in item (13) of this section.
(9) Child care centers.
(10) Apartment hotels. A business may be conducted within the building for the convenience of the
occupants of the building, provided there shall be no entrance to such place of business except
from inside the building and further provided that there be no exterior signs advertising such
business.
(11) Beauty culturist and hair stylist shop, studio for an artist, photographer, sculptor or musician
including teaching of art, music, dancing or other artistic instruction, provided the following
conditions are met:
(a) No building may be constructed or altered to produce a store front, show window or
display window;
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(b) There shall be no display from windows or doors;
(c) There shall be no storage of merchandise in the building or on the premises, and no
machinery or equipment other than customarily accessory to permitted uses;
(d) No exterior sign shall be permitted except as provided in item (13) of this section; and
(e) There shall be no adverse effect created on adjacent or neighborhood properties by reason
of dust, odor, vibration, glare or noise.
(12) On- premise freestanding and wall signs are allowed and further regulated under ARTICLE 33.
SUPPLEMENTAL SIGN REGULATIONS, PERMITS, PLATS AND FILING FEES. Roof
signs, neon signs and portable signs are prohibited. (Ordinance 026735, 4/17/06)
(13) Reserved. (Ordinance 024715, 12/18/01)
(14) Reserved.
(15) Accessory buildings and uses customarily incidental to the uses permitted in this district, including
retail sales accessory to the main use. (Ordinance 24715, 12/18/01)
(16) Assisted living facility. (Ordinance 24566, 08/28/01)
(17) Bed and breakfast (B &B) inn. (Ordinance 24580, 09/11/01)
Section 11 -3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22.
Section 11-4 Off - street Loading Regulations. The off - street loading regulations for permitted uses are contained
in Article 23.
Section 11 -5 Height, Area, and Bulk Regulations. The height, area, and bulk requirements shall be as set forth in
the chart of Article 24, and in addition the following regulation shall apply:
11 -5.01 Requirements for floor area per acre shall not apply to dormitories, fraternities, or
sororities where no cooking facilities are provided in individual rooms or apartments.
Section 11 -6 Supplementary height, area, and bulk regulations are contained in Article 27.
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ARTICLE 5. ".R -IA" ONE - FAMILY DWELLING DISTRICT REGULATIONS
Section 5-1 The regulations set forth in this article or set forth elsewhere in this Ordinance when referred to in this
article, are the regulations in the "R -IA" One - family Dwelling District. The purpose of this district is to
provide for single - family residential development of relatively more spacious character together with such
public buildings, schools, churches, public recreational facilities and accessory uses, as may be necessary
or are normally compatible with residential surroundings. The district is located to protect existing
development of high character and contains vacant land considered appropriate for such development in the
future.
Section 5-2 Use Regulations. A building or premises shall be used only for the following purposes:
( I) Truck garden, orchard, or nursery for growing or propagation of plants; trees and shrubs, but not
including the raising for sale of birds, bees, rabbits, or other animals, fish or other creatures to such an
extent as to be objectionable to surrounding residences by reason of odor, noise, or other factors, and
provided no retail or wholesale business office or store is maintained on the premises.
( 2) Single - family dwellings other than manufactured homes. (Ordinance 22851, 02/18/97)
(3) Churches and parish halls, temples, convents, and monasteries.
( 4) Colleges and schools, public and non -profit private schools, having a curriculum and conditions under
which teaching is conducted equivalent to a public school and institutions of higher teaming. In connection
with the use of such premises as a college or school, the premises may be used for signs, excluding portable
signs, which are within 100 feet of a public street for identifying any permitted educational or related
athletic facility or publicizing related educational events provided that no sign contain any commercial
message or commercial logo that exceeds 35 percent of the total sign area. Signs not within 100 feet from a
public street are permitted without restriction provided such sign does not incorporate flashing, moving, or
intermittent illumination. The number of signs and square footage of permissible sign area is not otherwise
limited. Any sign not in compliance with this paragraph for the use of colleges and schools described
herein shall be granted the status of a nonconforming sign upon the registration of such sign with the
Building Official or his designated representative within six months of the effective date of this ordinance
verifying for each sign:
(a) that the sign was constructed and in use prior to January I, 1989;
(b) that the sign is used to identify or publicize educational or related athletic events;
(c) the location of the sign; and
(d) the percentage of total sign area which is used or dedicated to a commercial logo or
commercial message.
All signs registered as nonconforming sign pursuant to this paragraph shall be subject to the provisions of
Article 26-11. Nonconforming Signs of this Zoning Ordinance.
(5) Home occupations.
( 6) Nonprofit libraries or museums, art galleries; public utility installations for sewer, water, gas, electric
and telephone mains and incidental appurtenances.
( 7) Public parks, playgrounds, golf courses, (except miniature golf courses, putting greens, driving ranges
and similar activities operated as a business), nonprofit, nongovernmental public recreation, and
community buildings.
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( 8) Railroad rights -of -way, including strip of land with tracks and auxiliary facilities for track operations,
but not including passenger stations, freight terminals, switching and classification yards, repair shops,
roundhouses, power houses, interlocking towers, and fueling, sanding and watering stations.
( 9) Shell dredging in water submerged areas.
(10) Temporary buildings, the uses of which are incidental to construction operations or sale of lots during
development being conducted on the same or adjoining tract or subdivision and which shall be removed
upon completion or abandonment of such construction, or upon the expiration of a period of two years from
the time of erection of such temporary buildings, whichever is sooner.
(11) Temporary non - illuminated signs pertaining to the lease, hire, or sale of a building or premises on
which such sign is located, may not exceed the following parameters: (Ordinance 25687, 03/03/04)
(a) For properties developed with single - family uses, the sign may not exceed six (6) square feet,
including rider signs, and in addition allow the use of one letter -sized flyer box. Only one sign per
street frontage is allowed.
(b) For undeveloped properties containing not Tess than three (3) acres and not more than five (5)
acres, the sign may not exceed a height of eight (8) feet and a sign area of sixteen (16) square feet.
Only one sign per street frontage is allowed. The use of one letter -sized flyer box per premise is
permitted.
(c) For undeveloped properties exceeding five (5) acres, the sign may not exceed a height of eight
(8) feet and a sign area of 32 square feet. Only one sign per street frontage is allowed. The use of
one letter -sized flyer box per premise is pennitted.
For the purposes of this section, street frontage includes frontage along a canal or a golf course.
(12) Child care homes.
(13) Accessory buildings and uses including, but not limited to, private garages, servants quarters, guest
houses, swimming pools, home barbecue grills, storage, off-street parking and loading spaces, customary
church bulletin boards and identification signs, which shall not utilize or incorporate flashing, moving, or
intermittent illumination and shall not exceed thirty (30) square feet in area for permitted public and semi-
public uses.
(14) Telecommunications facility, subject to the limitations in Article 27C. (Ordinance 23612, 04/13/99)
(15) if approved as a Specific Use Permit (SUP) under Article 25A, a bed and breakfast home (B &B) or
bed and breakfast home with special events (B &B/SE). (Ordinance 24580, 9/11/01)
Section 5-3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22.
Section 5-4 Off - street Loading Regulations. The off - street loading regulations for permitted uses are contained in
Article 23.
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Section 5-5 Height, Area, and Bulk Regulations. Height, area, and bulk requirements shall be as set forth in the
chart of Article 24, which chart, and all notations and requirements shown therein, shall be a part of this
Ordinance and have the same force and effect as if all the notations and requirements set forth therein were
fully set forth or described therein. In the "R -1A" District all Tots in platted subdivisions may comply with
the lot area and yard requirements of the "R-1B" District as minimum requirements.
Section 5-6 Supplementary height, area, and bulk regulations are contained in Article 27.
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ARTICLE 20. "1 -2" LIGHT INDUSTRIAL DISTRICT REGULATIONS
Section 20-1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in
this article are the regulations in the "1 -2" Light Industrial District. This district is intended primarily for
light manufacturing, fabricating, warehousing and wholesale distributing in high or low buildings with off -
street loading and off - street parking for employees and with access by major streets or railroad in either
central or outlying locations.
Section 20-2 Use Reguladoas. A building or premises shall be used only for the following purposes:
(1) Any use permitted in the "B -5" Primary Business District except for signs as enumerated in Item
(2) below and except for dwellings, hospitals, institutions, or other buildings used for permanent
or temporary housing of persons except as described in Item (3) below.
(2) On- premise freestanding and wall signs are allowed and regulated under ARTICLE 33.
SUPPLEMENTAL SIGN REGULATIONS, PERMITS, PLATS AND FILING FEES. Portable
signs are not allowed. Signs in this district are further regulated by Ordinance No. 21973,
Highway Beautification Ordinance, implementing the Texas Highway Beautification Act, Texas
Transportation Code, Chapters 391, 392 and 393 which ordinance by this reference is hereby
adopted as the supplementary outdoor sign regulations for this zoning district and by this reference
is incorporated herein as though set forth in its entirety. (Ordinance 026735, 04/17/06)
(3) Dwellings or HUD -code manufactured homes for resident watchmen and caretakers employed on
the premises. (Ordinance 22851, 02/18/97)
(4) The following uses, and any similar uses which are not likely to create any more offensive noise,
vibration, dust, heat, smoke, odor, glare, or other objectionable influences than the minimum
amount normally resulting from other uses permitted, such permitted uses being generally
wholesale and retail trade, service industries, and Tight industries that manufacture, process, store,
and distribute goods and materials and are generally dependent on raw materials refined elsewhere
and manufacture, compounding, processing, packaging, or treamrent, as specified of the following
products or similar products.
Chemicals. Petroleum. Coal. and Allied Products
Cosmetics and toiletries
Ice manufacture, including dry ice
Ink manufacturing (mixing only)
Insecticides, fungicides, disinfectants, and related industrial and household chemical compounds
(blending only)
Laboratories
Perfumes and perfumed soap (compounding only)
Pharmaceutical products
Soap, washing or cleaning, powder or soda (compounding only)
Clay. Stone. and Glass Products
Clay, . stone, and glass products
Concrete products (except central mixing and proportioning plant)
Pottery and porcelain products (electric or gas fired)
Food and Beverarte
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Bakery products, wholesale (manufacturing permitted)
Beverage, blending, bottling (all types)
Candy, wholesale (manufacturing permitted)
Chewing gum
Chocolate, cocoa, and cocoa products
Coffee, tea and spices, processing and packaging
Condensed and evaporated milk processing and canning
Creamery and dairy operations
Dairy products
Fish, shrimp, oysters, and other sea food processing, packing and storing except fish curing
Flour, feed and grain (packaging, blending, and storage only)
Fruit and vegetable processing (including canning, preserving, drying, and freezing)
Gelatin products
Glucose and dextrine
Grain blending and packaging, but not milling
Ice cream, wholesale (manuthcturing permitted)
Macaroni and noodle manufacture
Malt products manufacture (except breweries)
Meat products, packing and processing (no slaughtering)
Oleomargarine (compounding and packaging only)
Poultry packing and slaughtering (wholesale)
Yeast
Metals and Metal Products
Agricultural or farm implements
Aircraft and aircraft parts
Aluminum extrusion, rolling, fabrication, and forming
Automobile, truck trailer, motorcycle, and bicycle assembly
Boat manufacture (vessels less than five tons)
Bolts, nuts, screws, washers, and rivets
Container (metal)
Culvert
Firearms
Foundry products manufacture (electrical only)
Heating, ventilating, cooking, and refrigeration supplies and appliances
Iron fabrication (ornamental)
Machinery manufacture
Nails, brads, tacks, spikes, and staples
Needle and pin
Plating, electrolytic process
Plumbing supplies
Safe and vault
Sheet metal products
Silverware and plated ware
Stove and range
Toot, die, gauge, and machine shops
Tools and hardware products
Vitreous enameled products
Textiles. Fibers and Bedding
Bedding (mattress, pillow, and quilt)
Carpet, rug and mat
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Hat bodies of fur and wool felt manufacture (including men's hats)
Hosiery mill
Knitting, weaving, printing, finishing of textiles and fibers into fabric goods
Rubber and synthetic treated fabrics (excluding all rubber and synthetic processing)
Yarn, threads and cordage
Wood and Panxr Products
Basket and hamper (wood, reed, rattan, etc.)
Box and sate
Cooperage works (except cooperage stock mill)
Furniture (wood, reed, rattan, etc.)
Pencils
Planing and mill work
Pulp goods, pressed or molded (including paper mache products)
Shipping container (corrugated board, fiber, or wire bound)
Trailer, carriage, and wagon
Veneer
Wood products
Unclassified Uses
Animal pound
Animal, poultry, and bird raising, commercial
Automotive repair, minor, major, and heavy
Building materials storage and sales (cement, lime, in bags or containers, sand, gravel, shell,
lumber, and the like)
Bus garage and repair shop
Button manufacture
Carbon paper and inked ribbons manufacture
Cigar and cigarette manufacture
Circus grounds
Cleaning and dyeing of garments, hats and rugs
Coal and coke storage and sales
Contractor's shop and storage yard
Exposition building or center
Fairgrounds
Fur finishing
Greenhouses, wholesale
Industrial vocational training school, including internal combustion engines
Kennels
Laboratories, research, experimental, including combustion -type motor testing
Leather goods manufacture, but not including tanning operations
Laundries
Livery stables and riding academy
Market, wholesale
Motion picture production
Outside storage
(1) All outside storage shall be screened from view from the at -grade public right -
of-way;
(ii) The outside storage may not be located in the required minimum building
setbacks.
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Printing, publishing, and engraving
Produce and storage warehouse
Railroad switching yard primarily for railroad service in the district
Theater, including a drive -in or outdoor theater
Tire sales and service
Tire retreading and vulcanizing shop
Truck or transfer terminal, freight
Truck sales and repair (heavy load vehicles)
Truck stop, with overnight accommodations permitted
Vehicle impound yard
Wholesale houses and distributors
Sports arena or stadium
Section 20-3 Objectionable Use. The following use, having accompanying hazards, such as fire or explosion may,
if not in conflict with any law or ordinance in the City of Corpus Christi, may be located in the "1 -2" Light Industrial
District only after the location and nature of this use has been approved by the Board of Adjustment after public
hearing as provided in Article 29. The Board shall review the plans and statements and shall not permit this use
until it has been shown that the public health, safety, morals, and general welfare will be properly protected, and that
necessary safeguards will be provided for the protection of surrounding property and persons. The Board in
reviewing the plans and statements shall consult with other agencies created for the promotion of public health and
safety. (Ordinance No. 25534, 10/21/03)
(1) The storage of explosives used for perforating or fracturing (tracing) oil and gas well casing,
provided that the storage has been authorized by permit issued by the Federal Bureau of Alcohol,
Tobacco, Firearms, and Explosives and by permit issued by the City Fire Marshal.
Section 20-4 Parking Regulations. The parking regulations for permitted uses are contained in Article 22.
Section 20-5 Off-street Loading Regulations. The off - street loading regulations for permitted uses are contained
in Article 23.
Section 20-6 Height and Area Regulations. Height and area requirements shall be as set forth in the chart of
Article 24, and in addition the following regulations shall apply:
20 -6.01 There shall be a side yard not Tess than ten (10) fret in width on the side of a lot adjoining
an "R -1A ", "R -113", "R -2 ", "A -1 ", "A-1A", or "A -2" residential district.
20-6.02 There shall be a rear yard not less than ten (10) feet in depth on the rear of a lot adjoining
an "R-I A", "R -IB ", "R -2 ", "A -1 ", "A -IA ", or "A -2" residential district.
20 -6.03 Whenever any building in the "1 -2" Light Industrial District adjoins or abuts upon a
residential district, such building shall not exceed three stories nor 45 feet in height,
unless it is set back one foot from all required yard lines abutting such residential district
for each foot of additional height above 45 feet.
20-6.04 Whenever any building or structure, including but not limited to a bird coop, eatery,
corral, dog run, paddock, pen, pigeon cote, rabbit hutch, stable, or stall in the "1 -2" Light
Industrial District used to house animals, poultry, or birds in an animal pound,
commercial animal, poultry, or bird raising establishment, or kennel, adjoins or abuts a
residential district, the building or structure shall be set back not Tess than 100 feet from
all required yard lines abutting a residential district.
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(1) A Farm-Rural zoning district is not considered a residential district for the
purposes of this subsection.
(2) No setbacks are required for fenced pastures of at least one acre used to hold
livestock, such as cattle and horses. (Ordinance 24567, 08/28/01)
Section 20-7 Supplementary height and area regulations are contained in Article 27.
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ARTICLE 17. "B-5" PRIMARY BUSINESS DISTRICT REGULATIONS
Section 17 -1 The regulations set forth in this article, or set forth elsewhere in this Ordinance when referred to in
this article, are the regulations in the "B -5" Primary Business District. This district is located principally in
the central city area and is intended to provide for all types of business, commercial and service activities,
as well as a few Tight manufacturing uses, but is designed to discourage warehousing and manufacturing
generally or uses which tend to generate heavy truck traffic or require open storage of materials. In order
to discourage too high a concentration of buildings in the central area fringe, a bulk control is imposed and
requirements for off -street parking and loading are included in the regulations.
Section 17 -2 Use Regulations. A building or premises shall be used only for the following purposes:
( 1) Any use permitted in the "B-4" General Business District except one - family or two-family
dwellings unless the dwellings are ancillary to the main use and located in the same structure.
(2) Candy manufacture.
(3) Greenhouse or conservatory, commercial.
(4) Drug or pharmaceutical products manufacture.
(5) Laboratories, research and experimental.
( 6) Millinery manufacture.
( 7) Optical goods manufacture.
( 8) On- premise freestanding and wall signs are allowed and further regulated under ARTICLE 33.
SUPPLEMENTAL SIGN - REGULATIONS, - PERMITS, PLATS AND FILING FEES.
Freestanding signs shall not overhang or project into the public right -of -way. Wall signs may
project into the public right -of -way for a distance of not more than twenty-four (24) inches with a
clear height of nine (9) feet above the sidewalk and shall not extend above the height of the
building. If the sign is placed on the edge of a canopy or marquee, the letters shall not project
above or below the canopy or marquee; and, if attached to the underside of the canopy or marquee,
it shall not extend outside the line of the canopy or marquee and shall maintain a clear height of
eight (8) feet between the sidewalk and the bottom of the sign. No portable sign is permitted.
Signs in this district are further regulated by Ordinance No. 21973, Highway Beautification
Ordinance, implementing the Texas Highway Beautification Act, Texas Transportation Code,
Chapters 391, 392, and 393 which ordinance by this reference is hereby adopted as the
supplementary outdoor sign regulations for this zoning district and by this reference is
incorporated herein as though set forth in its entirety. (Ordinance 026735, 04/17/06)
( 9) Accessory buildings and uses.
Section 17 -3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22, except
for properties located east of U. S. Highway 181 and Upper Broadway Street where off - street parking is not
required.
(Ordinance 25390, 07/15/03)
Section 17-4 Off - street Loading Regulations. The off - street loading regulations for permitted uses are contained
in Article 23.
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Section 17 -5 Height, Area, and Bulk Regulations. The height, area, and bulk requirements shall be as set forth in
the chart of Article 24, and in addition the following regulations shall apply:
17 -5.01 There shall be a side yard not less than ten (10) feet in width on the side of a lot adjoining
an "R -1A ", "R -1B ", "R -1C" "R -2 ", "A -1 ", "A -1A ", or "A -2" residential district.
17 -5.02 There shall be a rear yard not less than ten (10) feet in depth on the rear of a lot adjoining
an "R -1A ", "R -1B ", "R -1C" "R -2 ", "A -1 ", "A -1A ", or "A -2" residential district.
Section 17 -6 Supplementary height, area, and bulk regulations are contained in Article 27.
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B-5
City Charter - Article V
ARTICLE V. PLANNING
Sec. 1. Purpose and Intent.
The dry council shall establish comprehensive planning as a continuous
governmental function in order to guide, regulate, and manage future development
and redevelopment within the corporate limits and extraterritorial jurisdiction of the
city to assure the most appropriate and beneficial use of land, water and other
natural resources, consistent with the public interest.
Sec. 2. Organization of Planning Commission.
A planning commission is hereby established which shall consist of nine registered
voters of the city. The members of the commission shall be appointed by the city
coundi for staggered terms of three years. The commission shall elect a chairperson
from among Its membership each year at the first regular meeting in August and
shall meet not less than once each month. Any vacancy in an unexpired term shall
be filled by the city council for the remainder of the term.
Sec. 3. Power and Duties of Planning Commission.
(a) The planning commission shall: (1) Reviews and make recommendations to the
city coundl regarding the adoption and implementation of a comprehensive plan,
any element or portion thereof, and any amendments thereto; (2) Review and make
recommendations to the city coundl on all proposals to adopt or amend land
development regulations for the purpose of establishing consistency with the
comprehensive plan; (3) Monitor and oversee the effectiveness of the
comprehensive plan, review and make recommendations to the council on any
amendments to the plan, and forward to the council comprehensive updates to the
plan at least once every five years; (4) Review and make recommendations to the
dty council regarding zoning or zoning changes in a manner to insure the
consistency of any such zoning or changes in zoning with the adopted
comprehensive plan; (5) Exercise control over platting and subdividing land within
the corporate limits and the extraterritorial jurisdiction of the city in a manner to
Insure the consistency of any such plans with the adopted comprehensive plan; and
(6) Review and make recommendations to the city council on the city's annual
budget and any capital improvement bond program.
(b) The departments of the dty government shall cooperate with the planning
commission in fumishing it such Information as is necessary in relation to Its work.
(c) The commission shall be responsible to and act as an advisory body to the
council and such additional duties and exercise such, additional powers as may be
prescribed by ordinance of the council.
Sec. 4. The Comprehensive Plan.
The city coundl shall adopt by ordinance a comprehensive plan, which shall
constitute the master and general plan of the city. The comprehensive plan shall
contain the city's polities for growth, development and aesthetics for the land within
the corporate limits and the extraterritorial jurisdiction of the city, or for portions
thereof, including neighborhood, community and, area -wide plans. The
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comprehensive plan shall include the following elements: (1) A future land -use
element; (2) An annexation element; (3) A transportation element; (4) An economic
development, element; (5) A public services and facilities element, which shall
Include a capital Improvement program; (6) A conservation and environmental
resources element; and (7) Any other element the city council may deem necessary
or desirable In order to further the above objectives.
Each element of the comprehensive plan shall Include policies for its implementation
and shall be implemented, in part, by the adoption and enforcement of appropriate
land development regulations and other ordinances, polides and programs.
After at least one public hearing, the planning commission shall forward the
proposed comprehensive plan, or element or portion thereof, to the city manager,
who shall submit such plan, or element or portion thereof, to the city council with
his or her recommendations. The city council may adopt, or adopt with changes or
amendments, the proposed comprehensive plan, or element or portion thereof, after
at least one public hearing. The city council shall act on the plan, or element or
portion thereof, within sixty days following its submission by the city manager. If
the plan should be rejected by the coundi, it shall, with policy directions to the
commission, return the plan to the planning commission which may reconsider the
plan and forward it to the city manager for submission to the council in the same
manner as originally provided. All amendments to the comprehensive plan
recommended by the planning commission shall be forwarded to the city manager
and shall be subject to review and adoption in the same manner as for the original
adoption of the comprehensive plan as set forth in this section.
Sec. 5. Legal Effect of Comprehensive Plan.
All city improvements, ordinances and regulations, shall be consistent with the
comprehensive plan. In the case of a proposed deviation to the adopted plan, or any
element or portion thereof, the planning commission shall communicate its
recommendations to the council which may approve or disapprove such deviation.
Sec. 6. Platting Property.
The city shall not pay for the property used for streets and alleys within any
subdivision, but the same shall, when platted, be dedicated to such use and shall
become the property of the city and shall be maintained as such. The city shall not
grant any permit to construct or enlarge any house or structure within the city until
a plat shall be approved and filed.
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MINUTES
REGULAR PLANNING COMMISSION MEETING
Council Chambers- City Hall
Wednesday August 20, 2008
5:30 P.M.
COMMISSIONERS:
Rudy Garza, Chairman
A. Javier Huerta, Vice- Chairman
John C. Tamez
Johnny R. Martinez
James Skrobarczyk
Evon J. Kelly
Govind Nadkarni
David Loeb
Mark Adame
STAFF:
Bob Nix, AICP Assistant City Manager of
Development Services
Johnny Perales, PE, Deputy Director of
Development Services/ Special Services
Faryce Goode- Macon, Assistant Director of
Development Services/Planning
Miguel Saldafia, Special Services
Jay Reining, First Assistant City Attorney
Beverly Lang- Priestley, Recording Secretary
ABSENCES:
None
I. CALL TO ORDER
A quorum was declared and the meeting was called to order at 5:30 p.m. by Vice - Chairman
Garza.
II. APPROVAL OF MINUTES
Motion for approval of the August 6, 2008, minutes was made by Commissioner Martinez
and seconded by Commissioner Kelly. Motion passed unanimously.
B. ZONING
1. New Zoning
a. Case No. 0808 -03
Southside Paint and Body, LLC: A change of zoning from a
"B -4" General Business District to an "I -2" Light Industrial District
resulting in a change of land use from commercial to light
industrial for an automotive paint and body repair shop
Saratoga Weber Plaza Block 7, Lot 12, located at 3902 Acushnet
Street, approximately 500 feet west of the Weber Road and
Acushnet Street intersection
Ms. Faryce Goode -Macon presented the above case via Power Point stating the applicant is
Southside Paint and Body and the subject property is located on the south side of Corpus Christi at
Weber Road and Jefferson Street, on the newly extended Acushnet Drive. The request is a change
in zoning from a "B-4" General Business District to "I -2" Light Industrial District for the purpose of
an auto repair which includes painting and welding. Ms. Goode -Macon stated the "I -2" Light
Industrial District is the only district that will allow for the paint and body welding, therefore, the
applicant is seeking the change to "I -2" Light Industrial District.
Ms. Goode -Macon stated that this portion of Acushnet Drive is mostly undeveloped at this
time with scattered developments occult #5Ms. Goode -Macon stated there is an auto parts store
Planning Commission Minutes
August 20, 2008
Page 2
in the area and an apartment complex across the street to the south which exits onto Acushnet. Ms.
Goode -Macon stated that Jefferson Avenue also connects to Saratoga, wrapping around the subject
property toward the north. The Existing Land Use shows the property as vacant and the Future
Land Use calls for general commercial.
Staff recommends denial of the "I -2" Light Industrial District and in- lieu - thereof approval
of a Special Permit for automobile repair, heavy uses without outdoor storage on the subject
property, and subject to a site plan and the following seven (7) conditions:
1. Uses: The only uses permitted by the Special Permit other than those uses permitted by
right in the `B -4" General Business District is a paint and body shop heavy automobile
repair use.
2. Hours of Operation: The operation of the auto paint and body shop shall be limited to the
hours between 7:30 AM and 6:00 PM.
3. Screening: A standard screening fence with a minimum height of six (6) feet shall be
located along the north, east and west boundary lines of this Special Permit. The screening
fence must be installed within one (1) year of the date of this ordinance.
4. Orientation of Doors: Rollup or retractable doors shall not face Acushnet Drive.
5. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning
Ordinance.
6. Lighting: All security lighting must be directional and shielded, be directed away from
adjacent residences, and light poles must be no higher than 15 feet. Cutoff shields are
required for all lighting. No lighting is permitted to project beyond the property line
adjacent to residential development.
7. Time Limit: This Special Permit expires two (2) years from the date of this ordinance,
unless the property is being used as outlined in Condition #1 and in compliance with all
other conditions.
Of the seven notices mailed, zero were received in favor and zero in opposition.
In response to Commissioner Nadkarni, Ms. Goode -Macon stated the Planning
Commission does have the authority to grant the "I -2" Light Industrial District and include the
seven special provisions. Ms. Goode -Macon stated that allowing the "I -2" district will not preclude
them from using the property as allowed in the "B-4" District.
In response to Commissioner Loeb, Ms. Goode -Macon stated staffs concern with the "I -2"
is the apartment complex across the street.
In response to Commissioner Adame, Ms. Goode -Macon stated the reason car dealerships
can do body repair in "B -4" because it is considered an accessory use to the main use and the
percentage of body repair is less than 50 %.
In response to Commissioner Skrobarczyk, most of Way Out Weber is zoned "I -2" to the
south and west. Commissioner Skrobarczyk stated he has no object to approving an "1 -2" because
it seems to be in keeping with the zoning in the area. Ms. Goode -Macon stated it is up to the
Planning Commission as to where they want to draw that line and that previous commissions had
set the boundaries at Way Out Weber.
Mr. Bob Nix, Development Services, stated that auto repair is permitted in the "B-4"
District if the work is all performed within an enclosed area and that paint and body is permitted as
an accessory use within an enclosed building with an associated auto sales establishment. Ms.
Goode -Macon stated this request is for paint and body and it falls into automobile repair "heavy"
and "heavy" is classified as an "I -2" District.
-166-
Planning Commission Minutes
August 20, 2008
Page 3
Mr. Nix stated that the way the applicant would conduct that business is specifically a use
of concern for this zoning district where they are trying to contain all the nuisances from that type
of establishment within a building and diminish the size of it so that it does not affect adjacent land
uses. Mr. Nix stated that if the "I -2" is permitted it opens it up to a whole different type of
operation and that is where staffs concern comes in.
Public hearing was opened.
Nobody came forward in support or opposition.
Public hearing was closed.
Motion to approve staffs recommendation was made by Commissioner Nadkarni and
seconded by Commissioner Kelly.
In response to Commissioner Skrobarczyk, Ms. Goode -Macon stated there is no difference
in the landscaping requirements whether the applicant is in "I -2" or "B -4" Districts.
Motion passed unanimously.
—167—
Page 1 of 4
AN ORDINANCE
AMENDING THE ZONING ORDINANCE, UPON APPLICATION
BY SOUTHSIDE PAINT & BODY, LLC, BY CHANGING THE ZONING
MAP IN REFERENCE TO SARATOGA WEBER PLAZA, BLOCK 7, LOT
12, FROM "B-4" GENERAL BUSINESS DISTRICT TO "B -4 /SP"
GENERAL BUSINESS DISTRICT WITH A SPECIAL PERMIT TO
ALLOW FOR AN AUTOMOTIVE BODY REPAIR SHOP, SUBJECT TO A
SITE PLAN AND SEVEN (7) CONDITIONS; AMENDING THE
COMPREHENSIVE PLAN TO ACCOUNT FOR ANY DEVIATIONS
FROM THE EXISTING COMPREHENSIVE PLAN; PROVIDING A
REPEALER CLAUSE; PROVIDING A PENALTY; PROVIDING FOR
PUBLICATION; AND DECLARING AN EMERGENCY.
WHEREAS, the Planning Commission has forwarded to the City Council its reports and
recommendations concerning the application of Southside Paint & Body, LLC, for
amendment to the City of Corpus Christi Zoning Ordinance and Zoning Map;
WHEREAS, with proper notice to the public, public hearings were held on Wednesday,
August 20, 2008, during a meeting of the Planning Commission, and on Tuesday,
September 23, 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 amendment 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:
SECTION 1. That the Zoning Ordinance of the City of Corpus Christi, Texas, is
amended by changing the zoning on Saratoga Weber Plaza, Block 7, Lot 12, located at
3902 Acushnet Street, approximately 500 feet west of the Weber Road and Acushnet
Street intersection, from "B-4" General Business District to "B -4 /SP" General Business
District with a Special Permit to allow for an automotive body repair shop, subject to a
site plan, attached, and seven (7) conditions. (Zoning Map 047035) (Exhibit A)
SECTION 2. That the Special Permit granted in Section 1 of this ordinance is subject to
the following seven (7) conditions:
1. Uses: The only uses permitted by the Special Permit other than those uses
permitted by right in the "B-4" General Business District is a paint and body shop
heavy automobile repair use.
2. Hours of Operation: The operation of the paint and body shop shall be limited to
the hours between 7:30 AM and 6:00 PM.
H:\ LEG- DIR\Shared\JayV\genda\ 2008\& 23\ ORD- zoning080B .I6&S9thsidePaint- B- 4-special permit.doc
Page 2 of 4
3. Screening: A standard screening fence with a minimum height of six (6) feet
shall be located along the north, east and west boundary lines of this special
Permit. The screening fence must be installed within one (1) year of the date of
this ordinance.
4. Orientation of Doors: Rollup or retractable doors shall not face Acushnet Drive.
5. Landscaping: Compliance with article 27B. Landscape Requirements in the
Zoning Ordinance.
6. Lighting: All security lighting must be directional and shielded, be directed away
from adjacent residences, and light poles must be no higher than 15 feet. Cutoff
shields are required for all lighting. No lighting is permitted to project beyond the
property line adjacent to residential development.
7. Time Limit: This Special Permit expires two (2) years from the date of this
ordinance, unless the property is being used as outlined in Condition #1 and in
compliance with all other conditions.
SECTION 3. That the official Zoning Map of the City of Corpus Christi, Texas, is
amended to reflect the amendment to the Zoning Ordinance made by Section 1 of this
ordinance.
SECTION 4. That the Zoning Ordinance and Zoning Map of the City of Corpus Christi,
Texas, approved on the 27th day of August, 1937, as amended from time to time,
except as changed by this ordinance and any other ordinances adopted on this date,
remain in full force and effect.
SECTION 5. That to the extent that this amendment to the Zoning Ordinance
represents a deviation from the Comprehensive Plan, the Comprehensive Plan is
amended to conform to the Zoning Ordinance, as amended by this ordinance.
SECTION 6. That all ordinances or parts of ordinances in conflict with this ordinance
are hereby expressly repealed.
SECTION 7. A violation of this ordinance or requirements implemented under this
ordinance constitutes an offense punishable under Section 35 -3 of the Zoning
Ordinance of the City of Corpus Christi.
SECTION 8. That 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 9. 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 as to consideration and voting upon ordinances at two
regular meetings so that this ordinance is passed upon first reading as an emergency
measure on this 23rd day of September, 2008.
H:\ LEG- DIR \SharedUayAgenda\200 849- 23\ ORD- zoningOBee}I&licMsidePaint -8-4- special pennit.doc
Page 3 of 4
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa Henry Garrett
City Secretary Mayor, City of Corpus Christi
APPROVED: September 15, 2008
R. Jay Reining
Assistant City Attorney
For City Attorney
H:\ LEG- DIR \Shared\JayWgenda\ 2008\ 9- 23\ ORD- zoningg801- neuthsidePaint -B-4- special permit.doc
Page 4 of 4
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, City of Corpus Christi
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:\ LEG- DIR \SharedUay\ genda N20(1819-23 ORD-zoning0811E1079pubsidePaint-B-4-special permit.doc
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CASE # 0808 -03
EXHIBIT A
PLANNING COMMISION and
STAFF RECOMMENDATION
From: "B-4"
To: "B-4/SP"
10
CITY COUNCIL
AGENDA MEMORANDUM
City Council Hearing Date: September 23, 2008
AGENDA ITEM:
(a) Public hearing on request for a variance from Dolores Gonzales to operate an on- premise
alcoholic establishment known as El Tapatio Mexican Grill located at 13941 Northwest
Boulevard.
(b) Resolution granting a variance, under Section 4 -5(0 of the Code of Ordinances to Delores
Gonzales, d.b.a. El Tapatio Mexican Grill, to operate an on- premises alcoholic beverage
establishment located at 13941 Northwest Boulevard.
ISSUE: El Tapitio Mexican Grill is requesting a variance to allow the on- premise sale and
consumption of alcoholic beverages. The proposed establishment is located within 300 feet of
Calallen High School. State law allows a city to prohibit any person from maintaining a business
for the dispensing and sale for on- premise consumption of alcoholic beverages within 300 feet of a
public or private school unless City Council has approved a variance to the distance requirement.
PREVIOUS COUNCIL ACTION: On December 16, 2003, the City Council approved an
amendment to Section 4-5 of the Code of Ordinances relating to the location of establishments that
dispense or sell alcoholic beverages for on- premise consumption and are located within 300 feet of
a church, child care facility, daycare center, public or private school, or public hospital.
REQUESTED COUNCIL ACTION: Approval of the variance.
RECOMMENDATION: Approval of the variance.
11v1/le'>
Bob Nix
Assistant City Manager,
Development Services
—175—
BACKGROUND INFORMATION
The El Tapatio Mexican Grill located at 13941 Northwest Boulevard is a new restaurant in
an existing building that was build in 1995. Since the date of filing with the Nueces County
Tax Appraisal District in 1995, it has been designated as a restaurant for the majority of its
history with only two instances of other commercial retail use. Upon further review in
collaboration with the Texas Alcoholic Beverage Commission (TABC) a license to serve
alcohol has not been issued to this address since its inception. The property is located in a
"B-4" General Business District which permits the operation of a bar, lounge, or tavern. The
proposed operators of the establishment desire to sell alcoholic beverages (beer and mixed
drinks) to the customers of the restaurant. The owner is requesting a variance due to the use
being in close proximity (approximately 146 feet) to a school (Calallen High School).
City Variance Procedure
State law allows a city to prohibit any person from maintaining a business for the dispensing
and sale for on- premises consumption of alcoholic beverages within 300 feet of churches,
daycare centers, childcare centers, public hospitals, and public and private schools unless the
City Council grants a variance to the distance requirements.
According to the City's Code of Ordinances, in order for Council to grant a variance, a public
notice must be published in the newspaper ten days before the hearing date and notices
mailed to all property owners, churches, daycare centers, childcare facilities, public and
private schools and public hospitals within 300 feet from the subject property and to the
superintendent of the school district in which the subject property is located. The ordinance
also states that the City Council may, upon application, allow a variance to the regulation if
the Council determines that enforcement of the regulation in a particular instance is not in the
best interest of the public, constitutes waste or inefficient use of land or resources, creates an
undue hardship on an applicant for a license or permit, does not serve its intended purpose, is
not effective or necessary, or for any other reason, after consideration of the health, safety,
welfare of the public and the equities of the situation, and determines it is in the best interest
of the community.
Land Use and Zoning Issues
The El Tapatio Mexican Grill is located in a `B -4" General Business District along
Northwest Boulevard (FM 624). The property east of the restaurant is zoned `B -4" General
Business District and operates a car dealership, the property to the west is zoned `B -4"
General Business District and operates a vehicle repair garage, and the property to the south
is zoned a `B -4" General Business District yet is currently vacant land. The nearest
residential use are single - family residences zoned "R -1A" Single - Family Residential District.
These homes are located 233 feet south of the El Tapatio Mexican Grill Restaurant. Both the
Current and Future Land Use Maps confirm a commercial use as appropriate for the subject
property.
—176—
Findings and Recommendation
The subject property operating as a restaurant is required to abide by all TABC regulation
including identification of all patrons meet the age requirement for alcoholic beverage sales.
Recommendation: Approval of the Variance.
Attachments: Location and Notice Map
Letter from Mario Alonzo- Representative for proposed restaurant owner
Letter from Calallen ISD - Superintendent
—177—
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Telephone No. 361 -547 -3307 - Fax No. 361- 547 -3306
August 6 ", 2008
City of Corpus Christi
Mr. Armando Chapa, City Secretary
City Hall 1" Floor
1201 Leopard Street
Corpus Christi, TX 78401
RE: EL TAPATIO MEXICAN GRILL
13941 NORTHWEST BLVD
CORPUS CHRISTI, TX 78410
Dear Mr. Chapa,
My client, Ms. Dolores Gonzalez have applied for a permit to allow her to sell Beer and Mix Beverage for on-
site consumption in the above referenced restaurant. On the 1" day of August, 2008, I, again applied and the
City of Corpus Christi - Development Services denied her application because the restaurant is within 146 feet of
Independent School District, specifically, Calallen Independent School District. I had applied for Mr. Alejandro
Zaragoza and Ms. Dolores Gonzalez before, on or about 3nd day of June, 2008 and on the 101 day of June we
received a respond from your office stating that Texas Alcoholic Beverage Commission ( "TABC") the City had
confirmed that due to inaction on the our application, it has been administratively withdrawn from further
consideration and action at this the by the TABC and the result of this action it was cancelled . The reason it
took us so long was that Mr. Zaragoza and Ms. Gonzalez were having problems with the persons who sold them
J.O.M.Y., Incorporation which is now dissolved as of June 30"', 2008. I hope that you would reconsider this
request.
Pursuant to Section 4 -5 (d,f,gh) of the Code of Ordinances, please let this act as my clients', Ms. Dolores
Gonzalez's, request for a Variance regarding Section 4 -5 (a) of the Code of Ordinances which prohibits the
dispensing and sale for on- premises consumption of alcoholic beverages within the corporate limits of the city
within three hundred (300) feet of any church, child -care facility, day -care facility, public or private school or
public hospital.
This establishment is across the street from Calallen Independent School District football field. The restaurant
provides a Mexican cuisine for the public in a pleasant family atmosphere. We would show that El Tapatio
Mexican Grill expects to employ five (5) to eight (8) persons, provide sales tax revenue to the City, to be an
asset and turning non - producing business location into an useful resource. The variance is needed to allow El
Tapatio Mexican Grill restaurant to produce a profit and provide a service to its customers, selling beer and mix
beverage.
—179—
I/We respectfully request a Variance pursuant to Section 4 -5 (d,fg,h) of the Code of Ordinances; that proper
notice be made, that the request for a Variance be presented to the City Council in accordance with law; and that
a Variance be granted.
Attached is a copy of the letter /statement from Mr. Arturo Almendarez, Ed.D., Calallen ISD Superintendent and
Section 4-5 Prohibited location of on premises alcoholic beverage establishments.
Please inform us of expected costs for publishing and mailing notices so that we may reimburse these costs.
If anything further is needed, please contact my office
Thank you,
Sincerely,
o Alonzo,
Accountant
—180—
Calallen Independent School District
4205 Wildcat Drive • Corpus Christi, Texas 78410 • (361) 242 -5600
FAX (361) 242 -5619 Business Office • FAX (361) 242 -5608 Curriculum
FAX (361) 242 -7552 Personnel • (361) 242 -5972 Special Programs • FAX (361) 242 -5620 Superintendent
May 16, 2008
El Tapatio Restaurant
13941 Northwest Blvd.
Corpus Christi, Texas 78410
To Whom It May Concern:
Arturo Almendarez, FAD.
Superintendent of Schools
Calallen ISD has been properly notified and advised that this establishment, El Tapatio
Restaurant, sells and serves alcohol on it premises. Due to the adjacent location of
Calallen High School on Northwest Blvd, we understand that Calalien ISD must have
been granted the opportunity to protest the issuance of a liquor license for this
establishment and hereby state that such a protest was not made. El Tapatio Restaurant
has met the requirement of notification and may proceed with liquor dispensation as
properly licensed for by the state of Texas and Texas Alcohol and Beverage Commission.
Si�ncerel�y, it
Arturo Almendarez, Ed D.
Superintendent
Calallen ISD
—181—
Sec. 4-5. Prohibited location of on- premises alcoholic beverage establishments, etc.
(a) No person may maintain a place of business for the dispensing and sale for on- premises
consumption of alcoholic beverages within the corporate limits of the city within three hundred (300)
feet of any church, child care facility, daycare center, public or private school, or public hospital.
(b) The distance between any place of business that dispenses and sells alcoholic beverages for on-
premises consumption and a church, child care facility, daycare center, or public .hospital must be
measured under §§ 109.33 and 109.331, Texas Alcoholic Beverage Code.
(c) The distance between any place of business that dispenses and sells alcoholic beverages for on-
premises consumption and a public or private school must be measured under § 109.33 Texas
Alcoholic Beverage Code.
(d) Any such establishment, which receives less than fifty (50) per cent of Its gross receipts from the
sale or service of alcoholic beverages and holds a food and beverage certificate issued by the Texas
Alcoholic Beverage Commission, is excluded frorrrthe prohibitiomin this section.
(e) As to any dealer who held a license or permit on September 1, 1983, in a location where a
regulation under this section was in effect on that date, the measurement of the distance between the
place of business of the dealer and a public school shall be along the property lines of the street fronts
and from front door to front door, and In direct line across intersections. This subsection applies only as
long as the place of business is continuously In operation from September 1,1983, whether or not
under the same license or permit.
(f) The city council may, upon application of a business regulated under this section, allow a variance
to the regulation if the council determines that enforcement of the regulation in a particular instance is
not in the best interest of the public, constitutes waste or inefficient use of land or other resources,
creates an undue hardship on an applicant for a license or permit, does not serve its intended purpose,
is not effective or necessary, or for any other reason, after consideration of the health, safety, and
welfare of the public and the equities of the situation, detemrines it is in the best interest of the
community.
(g) Before granting a variance under subsection (f) of this section, the city council will hold a public
hearing to receive input from the public on the requested variance. The city secretary shall publish a
notice of the public hearing in the newspaper at least ten (10) days before the hearing date. Written
notice of the public hearing before the city council on the requested variance must be sent to the
owners of real property within three hundred (300) feet of the property on which the variance is
requested. Separate notices must be sent to any church, child care facility, daycare center, public or
private school, or public hospital located within three hundred (300) feet of the property on which a
variance is requested and to the superintendent of the school district in which the property requesting
the variance is located. The notice may be served by its deposit, properly addressed with postage paid,
in the United States mail.
(h) The applicant for the variance must reimburse the city for the costs of publishing the notice in the
newspaper and mailing the written notice to surrounding property owners, churches, child care facilities,
daycare centers, public or private schools, public hospitals, and school district superintendents before
the public hearing is held.
(Code 1958, § 44; Ord. No. 11412, § 1, 4-4 -1973; Ord. No. 17932, § 1, 11 -9 -1983; Ord. No. 25594, § 1, 12 -16-
2003)
.... -182—
A RESOLUTION
GRANTING A VARIANCE, UNDER SECTION 4-5(F) OF THE
CODE OF ORDINANCES, TO DOLORES GONZALEZ, DBA EL
TAPATIO MEXICAN RESTAURANT, TO OPERATE AN ON-
PREMISE ALCOHOLIC BEVERAGE ESTABLISHMENT
LOCATED AT 13941 NORTHWEST BOULEVARD.
WHEREAS, Dolores Gonzalez, dba El Tapatio Mexican Restaurant ( "El Tapatio "),
desires to operate a restaurant on property located at 13941 Nothwest Boulevard, which
is situated within the City of Corpus Christi ( "City");
WHEREAS, El Tapatio desires to allow on- premise sales and consumption of alcoholic
beverages at the location;
WHEREAS, the location of El Tapatio's proposed business is within 300 feet of a public
high school;
WHEREAS, as allowed under Section 109.33(a)(1) of the Texas Alcohol and Beverage
Code ( "TAB Code "), the City enacted Section 4 -5(a) of the City's Code of Ordinances
( "Code ") to prohibit any person from maintaining a business for the dispensing and sale
for on- premises consumption of alcoholic beverages within the corporate limits of the
City within 300 feet of any public school;
WHEREAS, Section 109.33(e) of the TAB Code and Section 4 -5(f) of the Code allow
the City Council ( "Council "), upon application of a business regulated under Section 4 -5
of the Code, to grant a variance to the alcohol regulations contained within the section if
the Council determines that enforcement of the regulation in a particular instance is not
in the best interest of the public, constitutes waste or inefficient use of land or other re-
sources, creates an undue hardship on an applicant for a license or permit, does not
serve its intended purpose, is not effective or necessary, or for any other reason, and,
after consideration of the health, safety, and welfare of the public and the equities of the
situation, determines it is in the best interest of the community;
WHEREAS, El Tapatio has formally applied to the City for a variance under Section 4-
5(f);
WHEREAS, El Tapatio believes and states that enforcement of the regulation, in this
particular instance, is not in the best interest of the public;
WHEREAS, El Tapatio believes and states that enforcement of the regulation, in this
particular instance, constitutes waste or inefficient use of the land or other resources;
and
WHEREAS, El Tapatio requests that the Council grant the variance.
—183—
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS, THAT:
SECTION 1. The City Council has determined that enforcement of Section 4 -5(a) of the
Code of Ordinances, in this particular instance, is not in the best interest of the public
and, after consideration of the heath, safety, and welfare of the public and the equities
of the situation, grants the variance in the best interest of the community.
SECTION 2. The City Council has determined that enforcement of Section 4 -5(a) of the
Code of Ordinances, in this particular instance, constitutes waste and inefficient use of
the land and other resources and, after consideration of the health, safety, and welfare
of the public and the equities of the situation, grants the variance in the best interest of
the community.
ATTEST:
Armando Chapa
City Secretary
CITY OF CORPUS CHRISTI
Henry Garrett
Mayor
APPROVED AS TO FORM: September 18, 2008
R- ning
First A istant
for the City Att
R
•
C' Attorney
mey
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Corpus Christi, Texas
day 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
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11
CITY COUNCIL
AGENDA MEMORANDUM
AGENDA ITEM:
Ordinance by the City Council of the City of Corpus Christi, Texas, providing for the issuance of
City of Corpus Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of
Obligation, Series 2008 in the aggregate principal amount of $12,000,000, and ordaining other
matters relating to the subject.
September 23, 2008
ISSUE:
The City plans to issue up to $12,000,000 in Combination Tax and Revenue Certificates of
Obligation, (Landfill Project). The Landfill Project certificates will be used for the purpose of
paying contractual obligations relating to the construction of improvements to the City's solid waste
facilities, as well as the payment of fiscal, engineering and legal fees incurred in connection with the
certificates.
REQUIRED COUNCIL ACTION:
Approval of the Ordinance as presented.
PREVIOUS COUNCIL ACTION:
July 22, 2008 — City Council approved Resolution No. 027775 directing publication of notice of
intention to issue Combination Tax and Revenue Certificates of Obligation, Series 2008 (Landfill
Project).
RECOMMENDATION:
City Staff recommends approval of the ordinance providing for the issuance of City of Corpus
Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008,
in an amount not in excess of $12,000,000, and ordaining other matters relating to the subject.
a .,
Constance P. Sanchez
Interim Director of Financial Services
Attachments:
Copy of Draft Ordinance
Preliminary Official Statement Dated August 20, 2008
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BACKGROUND INFORMATION
The City plans to issue up to $12,000,000 in Combination Tax and Solid Waste Revenue Certificates
of Obligation during the first quarter of fiscal year 2008 -2009.
The landfill projects expected to be funded by the certificates will include the paying of contractual
obligations to be incurred by the City with respect to the City's solid waste facilities, including,
without limitation, paying contractual obligations to be incurred with respect to the development of
the Cefe Valenzuela landfill in the vicinity of County Road 20 and Farm Road 2444, for the
construction of municipal landfill waste disposal cells, internal roadways and pavement, cover
systems, gas collection systems, equipment, drainage facilities, maintenance facilities, extension of
the leachate collection and management system, liners, environmental monitoring equipment, and
other improvements necessary to operate the landfill, and improvements to the J. C. Elliott landfill in
the vicinity of State Highway 286 (Chapman Ranch Road) and State Highway 357 (Saratoga
Boulevard) including construction of final cover systems, gas management system, ground water
monitoring, transfer station improvements and equipment, scalehouse building improvements,
intemal roadways and pavement, and other improvements necessary to operate said facility, and the
payment of fiscal, engineering and legal fees incurred in connection therewith.
The City has included funding for these certificates in the fiscal year 2008 -2009 operating budget.
The solid waste fees included in the fiscal year 2008 -2009 operating budget are anticipated to
generate sufficient revenues to fund these certificates.
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ORDINANCE NO.
ORDINANCE BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS,
PROVIDING FOR THE ISSUANCE OF CITY OF CORPUS CHRISTI, TEXAS,
COMBINATION TAX AND SOLID WASTE REVENUE CERTIFICATES OF OBLIGA-
TION, SERIES 2008, IN THE AGGREGATE PRINCIPAL AMOUNT OF $12,000,000,
AND ORDAINING OTHER MATTERS RELATING TO THE SUBJECT
WHEREAS, on the 22nd day of July, 2008, the City Council of the City of Corpus Christi,
Texas (the "City" or the "Issuer ") passed a resolution authorizing and directing notice of its intention
to issue the Certificates of Obligation herein authorized to be issued in an aggregate principal amount
not to exceed $12,000,000, to be published in a newspaper as required by Section 271.049 of the
Texas Local Government Code; and
WHEREAS, said notice was published on August 8, 2008 and August 15, 2008 in the Corpus
Christi Caller- Times, a "newspaper" as described in Section 2051.044, Texas Government Code, in
accordance with the provisions of Section 271.049 of the Texas Local Government Code ( "Section
271.049 "); and
WHEREAS, no petition, signed by 5% of the qualified electors of said City as permitted by
Section 271.049 protesting the issuance of such Certificates of Obligation, has been filed with the
City; and
WHEREAS, the Certificates of Obligation hereinafter authorized are to be issued and
delivered pursuant to Subchapter C of Chapter 271 of the Texas Local Government Code;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
Section 1. AUTHORIZATION OF CERTIFICATES OF OBLIGATION. That the
Certificates of Obligation to be issued by the City, designated the "City of Corpus Christi, Texas
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Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008 ", are hereby
authorized to be issued and delivered in the principal amount of $12,000,000, for the purpose of
providing part of the funds for paying contractual obligations to be incurred by the City, to -wit: the
construction of improvements to the City's solid waste facilities, including, without limitation, paying
contractual obligations to be incurred with respect to the development of the Cefe Valenzuela landfill
in the vicinity of County Road 20 and Farm Road 2444, for the construction of municipal landfill
waste disposal cells, internal roadways and pavement, cover systems, gas collection systems,
equipment, drainage facilities, maintenance facilities, extension of the leachate collection and
management system, liners, environmental monitoring equipment, and other improvements necessary
to operate the landfill, and improvements to the J. C. Elliott landfill in the vicinity of State Highway
286 (Chapman Ranch Road) and State Highway 357 (Saratoga Boulevard) including construction
of final cover systems, gas management system, ground water monitoring, transfer station
improvements and equipment, scalehouse building improvements, internal roadways and pavement,
and other improvements necessary to operate said facility, and the payment of fiscal, engineering and
legal fees incurred in connection therewith. The term "Certificates" as used in this Ordinance shall
mean and include collectively the Certificates of Obligation initially issued and delivered pursuant to
this Ordinance and all substitute Certificates of Obligation exchanged therefor, as well as all other
substitute Certificates of Obligation and replacement Certificates of Obligation issued pursuant
hereto, and the term "Certificate" shall mean any of the Certificates.
Section 2. DATE, DENOMINATIONS, NUMBERS AND MATURITIES. That the
Certificates shall initially be issued, sold and delivered hereunder as fully registered certificates,
without interest coupons, dated September 1, 2008, in the respective principal amounts set forth in
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Schedule I to this Ordinance. The Certificates shall be in denominations of $5,000 or any integral
multiple thereof (an "Authorized Denomination "), numbered consecutivelyfromR -1 upward, payable
to the respective initial registered owners thereof (as designated in Section 18 hereof) upon the initial
delivery of the Certificates, and thereafter to the registered assignee or assignees of the Certificates
or any portion or portions thereof (in each case, the "Registered Owner "), and the Certificates shall
mature on the maturity date, in each of the years and in the amounts as set forth in Schedule I to this
Ordinance. For purposes of this Ordinance, the Certificates maturing on March 1, 20_ are hereby
designated as "Term Certificates ".
Section 3. REDEMPTION. (a) Optional Redemption. That the City reserves the right to
redeem the Certificates maturing on or after March 1, 2019, in whole or in part, in the principal
amount of $5,000 or any integral multiple thereof on March 1, 2018, and on any date thereafter, at
the par value thereof plus accrued interest to the redemption date. The years of maturity of the
Certificates called for redemption at the option of the City prior to stated maturity shall be selected
by the City. The Certificates or portions thereof redeemed within a maturity shall be selected at
random and by lot by the Paying Agent/Registrar.
(b) Mandatory Redemption. The Term Certificates are subject to mandatory sinking fund
redemption prior to their scheduled maturities as provided in the FORM OF CERTIFICATES.
(c) Notice. At least 30 days prior to the date fixed for any such redemption, (i) a written
notice of such redemption shall be given to the registered owner of each Certificate or a portion
thereof being called for redemption by depositing such notice in the United States mail, first -class
postage prepaid, in the name of the City and at the City's expense addressed to each such registered
owner at its address shown on the registration books of the Paying Agent/Registrar and (ii) notice
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of such redemption shall be published one (I) time in a financial journal or publication of general
circulation in the United States of America or the State of Texas carrying as a regular feature notices
of municipal bonds called for redemption; provided, however, that the failure to send, mail, or receive
such notice described in (i) above, or any defect therein or in the sending or mailing thereof, shall not
affect the validity or effectiveness of the proceedings for the redemption of any Certificate, and it is
hereby specifically provided that the publication of notice described in (ii) above shall be the only
notice actually required in connection with or as a prerequisite to the redemption of any Certificate.
By the date fixed for any such redemption due provision shall be made by the City with the Paying
Agent/Registrar for the payment of the required redemption price for the Certificates or the portions
thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for redemption.
If such notice of redemption is given, and if due provision for such payment is made, all as
provided above, the Certificates, or the portions thereof, which are to be so redeemed, thereby
automatically shall be redeemed prior to their scheduled maturities, and shall not bear interest after
the date fixed for their redemption, and shall not be regarded as being outstanding except for the right
of the registered owner to receive the redemption price plus accrued interest to the date fixed for
redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying
Agent/Registrar shall record in the registration books all such redemptions of principal of the
Certificates or any portion thereof. If a portion of any Certificate shall be redeemed a substitute
Certificate or Certificates having the same maturity date, bearing interest at the same rate, in any
Authorized Denomination, at the written request of the registered owner, equal to the unredeemed
portion thereof will be issued to the registered owner upon the surrender thereof for cancellation,
at the expense of the City, all as provided in this Ordinance.
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Section 4. INTEREST. That interest on the Certificates shall be payable on March 1, 2009,
and semiannually thereafter on September 1 and March 1 of each year, until maturity or redemption
prior to maturity, to the registered owner of any such Certificate as of the Record Date (as defined
in the FORM OF CERTIFICATE) next preceding such interest payment date, in the manner provided
in the FORM OF CERTIFICATE, at the rates per annum as set forth in Schedule I to this Ordinance.
Interest on the Certificates shall be calculated on the basis of a 360 -day year consisting of twelve 30-
day months.
Section 5. CHARACTERISTICS OF THE CERTIFICATES. (a) The City shall keep
or cause to be kept at the corporate trust office in Dallas, Texas (the "Designated Trust Office ") of
The Bath of New York Mellon Trust Company, N.A. (the "Paying Agent/Registrar "), or such other
bank, trust company, financial institution, or other agency named in accordance with the provisions
of subsection (g) of this Section hereof books or records of the registration and transfer of the
Certificates (the "Registration Books "), and the City hereby appoints the Paying Agent/Registrar as
its registrar and transfer agent to keep such books or records and make such transfers and registra-
tions under such reasonable regulations as the City and Paying Agent /Registrar may prescribe; and
the Paying Agent /Registrar shall make such transfers and registrations as herein provided. The City
Manager or the designee thereof is hereby authorized to execute a "Paying Agent/Registrar
Agreement" in substantially the form attached hereto, and as approved by the City Attorney. It shall
be the duty of the Paying Agent /Registrar to obtain from the registered owner and record in the
Registration Books the address of such registered owner of each certificate to which payments with
respect to the Certificates shall be mailed, as herein provided. The City or its designee shall have the
right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar,
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but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless
otherwise required by law, shall not permit their inspection by any other entity. Registration of each
Certificate may be transferred in the Registration Books only upon presentation and surrender of such
certificate to the Paying Agent/Registrar at the Designated Trust Office for transfer of registration
and cancellation, together with proper written instruments of assignment, in form and with guarantee
of signatures satisfactory to the Paying Agent/Registrar, evidencing the assignment of such certificate,
or any portion thereof in any Authorized Denomination to the assignee or assignees thereof, and the
right of such assignee or assignees to have such certificate or any such portion thereof registered in
the name of such assignee or assignees. Upon the assignment and transfer of any Certificate or any
portion thereof, a new substitute Certificate or Certificates shall be issued in exchange therefor in the
manner herein provided.
(b) The entity in whose name any Certificate shall be registered in the Registration Books at
any time shall be treated as the absolute owner thereof for all purposes of this Ordinance, whether
such Certificate shall be overdue, and the City and the Paying Agent/Registrar shall not be affected
by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, and
interest on any such Certificate shall be made only to such registered owner. All such payments shall
be valid and effectual to satisfy and discharge the liability upon such certificate to the extent of the
sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying agent
for paying the principal of and interest on the Certificates, and to act as its agent to exchange or
replace Certificates, all as provided in this Ordinance. The Paying Agent/Registrar shall keep proper
records of all payments made by the City and the Paying Agent/Registrar with respect to the
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Certificates, and of all exchanges of such certificates, and all replacements of such Certificates, as
provided in this Ordinance.
(d) Each Certificate may be exchanged for fully registered certificates in the manner set forth
herein. Each Certificate issued and delivered pursuant to this Ordinance, to the extent of the unre-
deemed principal amount thereof, may, upon surrender of such Certificate at the Designated Trust
Office of the Paying Agent/Registrar, together with a written request therefor duly executed by the
registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys or
representatives, with guarantee ofsignatures satisfactoryto the Paying Agent /Registrar, at the option
of the registered owner or such assignee or assignees, as appropriate, be exchanged for fully regis-
tered Certificates, without interest coupons, in the formprescribed in the FORM OF CERTIFICATE,
in any Authorized Denomination (subject to the requirement hereinafter stated that each substitute
certificate shall have a single stated maturity date), as requested in writing by such registered owner
or such assignee or assignees, in an aggregate principal amount equal to the unredeemed principal
amount of any Certificate or Certificates so surrendered, and payable to the appropriate registered
owner, assignee, or assignees, as the case may be. If a portion of any Certificate shall be redeemed
prior to its scheduled maturity as provided herein, a substitute Certificate or Certificates having the
same maturity date, bearing interest at the same rate, in any Authorized Denomination at the request
of the registered owner, and in an aggregate principal amount equal to the unredeemed portion
thereo% will be issued to the registered owner upon surrender thereof for cancellation. If any
Certificate or portion thereof is assigned and transferred, each Certificate issued in exchange therefor
shall have the same maturity date and bear interest at the same rate as the Certificate for which it is
being exchanged. Each substitute Certificate shall bear a letter and/or number to distinguish it from
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each other Certificate. The Paying Agent/Registrar shall exchange or replace Certificates as provided
herein, and each fully registered certificate or certificates delivered in exchange for or replacement
of any Certificate or portion thereof as permitted or required by any provision of this Ordinance shall
constitute one of the Certificates for all purposes of this Ordinance, and may again be exchanged or
replaced. It is specifically provided, however, that any Certificate delivered in exchange for or
replacement of another Certificate prior to the first scheduled interest payment date on the
Certificates (as stated on the face thereof) shall be dated the same date as such Certificate, but each
substitute Certificate so delivered on or after such fast scheduled interest payment date shall be dated
as of the interest payment date preceding the date on which such substitute Certificate is delivered,
unless such substitute Certificate is delivered on an interest payment date, in which case it shall be
dated as of such date of delivery; provided, however, that if at the time of delivery of any substitute
Certificate the interest on the Certificate for which it is being exchanged has not been paid, then such
substitute Certificate shall be dated as of the date to which such interest has been paid in full. On
each substitute Certificate issued in exchange for or replacement of any Certificate or Certificates
issued under this Ordinance there shall be printed thereon a Paying Agent/Registrar's Authentication
Certificate (the "Authentication Certificate "), in the form hereinafter set forth in the FORM OF
CERTIFICATE. An authorized representative of the Paying Agent/Registrar shall, before the
delivery of any such substitute Certificate, date such substitute Certificate in the manner set forth
above, and manually sign and date the Authentication Certificate, and no such substitute Certificate
shall be deemed to be issued or outstanding unless the Authentication Certificate is so executed. The
Paying Agent/Registrar promptly shall cancel all Certificates surrendered for exchange or replace-
ment. No additional ordinances, orders, or resolutions need be passed or adopted by the City Council
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or any other body or person so as to accomplish the foregoing exchange or replacement of any
Certificate or portion thereof; and the Paying Agent/Registrar shall provide for the printing, execu-
tion, and delivery of the substitute Certificates in the manner prescribed herein. Pursuant to Chapter
1206, Texas Government Code, the duty of exchange or replacement of any Certificates as aforesaid
is hereby imposed upon the Paying Agent/Registrar, and upon the execution of the Authentication
Certificate, the exchanged or replaced certificate shall be valid, incontestable, and enforceable in the
same manner and with the same effect as the Certificates which originally were delivered pursuant
to this Ordinance, approved by the Attorney General of the State of Texas (the "Attorney General "),
and registered by the Comptroller of Public Accounts of the State of Texas (the "Comptroller ").
Neither the City nor the Paying Agent/Registrar shall be required (1) to issue, transfer, or exchange
any Certificate during a period beginning at the opening of business 30 days before the day of the first
mailing of a notice of redemption of Certificates and ending at the close of business on the day of
such mailing, or (2) to transfer or exchange any Certificate so selected for redemption in whole when
such redemption is scheduled to occur within 30 calendar days.
(e) All Certificates issued in exchange or replacement of any other Certificate or portion
thereof (i) shall be issued in fully registered form, without interest coupons, with the principal of and
interest on such Certificates to be payable onlyto the registered owners thereof (ii) maybe redeemed
prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be exchanged for
other Certificates, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the
principal of and interest on the Certificates shall be payable, all as provided, and in the manner re-
quired or indicated, in the FORM OF CERTIFICATE.
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(f) The City shall pay all of the Paying Agent/Registrar's reasonable and customary fees and
charges for making transfers and exchanges of Certificates, but the registered owner of any Certificate
requesting such transfer shall pay any taxes or other governmental charges required to be paid with
respect thereto. In addition, the City hereby covenants with the registered owners of the Certificates
that it will (i) pay the reasonable and standard or customary fees and charges of the Paying
Agent/Registrar for its services with respect to the payment of the principal of and interest on the
Certificates, when due, and (ii) pay the fees and charges of the Paying Agent/Registrar for services
with respect to the transfer or registration of Certificates solely to the extent above provided, and
with respect to the exchange of Certificates solely to the extent above provided.
(g) The City covenants with the registered owners of the Certificates that at all times while
the Certificates are outstanding the City will provide a competent and legally qualified bank, trust
company, financial institution, or other agency to act as and perform the services of Paying
Agent/Registrar for the Certificates under this Ordinance, and that the Paying Agent/Registrar will
be one entity. The City reserves the right to, and may, at its option, change the Paying Agent/Regis-
trar upon not less than 60 days written notice to the Paying Agent/Registrar. In the event that the
entity at any time acting as Paying Agent/Registrar (or its successor by merger, acquisition, or other
method) should resign or otherwise cease to act as such, the City covenants that promptly it will
appoint a competent and legally qualified national or state banking institution which shall be a
corporation organised and doing business under the laws of the United States of America or of any
state, authorized under such laws to exercise trust powers, subject to supervision or examination by
federal or state authority, and whose qualifications substantially are similar to the previous Paying
Agent/Registrar to act as Paying Agent /Registrar under this Ordinance. Upon any change in the
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Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and deliver the
registration books (or a copy thereof), along with all other pertinent books and records relating to
the Certificates, to the new Paying Agent /Registrar designated and appointed by the City. Upon any
change in the Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent
by the new Paying Agent/Registrar to each registered owner of the Certificates, by United States
mail, first -class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this
Ordinance shall be delivered to each Paying Agent/Registrar.
Section 6. FORM OF CERTIFICATES. That the form of the Certificates, including the
form of the Authentication Certificate, the form of Assignment and the form of Registration
Certificate of the Comptroller (the "Comptroller's Certificate ") to be attached to the Certificates
initially issued and delivered pursuant to this Ordinance, shall be in substantially the form as set forth
in Exhibit A to this Ordinance, with such appropriate variations, omissions, or insertions as are
permitted or required by this Ordinance. The printer of the Certificates is hereby authorized to print
on the Certificates (i) the form of bond counseFs opinion relating to the Certificates, and (ii) an
appropriate statement of insurance furnished by a municipal bond insurance company providing
municipal bond insurance, if any, covering all or any part of the Certificates.
Section 7. DEFINITIONS. That the term "Series 2000 Certificates of Obligation" shall
mean the City of Corpus Christi, Texas, Combination Tax and Revenue Certificates of Obligation,
Series 2000, dated September 1, 2000, and currently outstanding in the aggregate principal amount
of $2,045,000; the term "Series 2004 Certificates of Obligation" shall mean the City of Corpus
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Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2004,
dated July 1, 2004, and currently outstanding in the aggregate principal amount of $5,895,000; the
term "Series 2005 Certificates of Obligation" shall mean the City of Corpus Christi, Texas,
Combination Tax and Revenue Certificates of Obligation, Series 2005 (Landfill Project), dated June
1, 2005, and currently outstanding in the aggregate principal amount of $14,010,000; the term "Series
2006 Certificates of Obligation" shall mean the City of Corpus Christi, Texas, Combination Tax and
Solid Waste Revenue Certificates of Obligation, Series 2006, dated May 1, 2006, and currently
outstanding in the aggregate principal amount of $18,605,000; and the term "Code" shall mean the
Internal Revenue Code of 1986, and any amendment thereto.
Section 8. INTEREST AND SINKING FUND. That a special fund or account, to be
designated the "City of Corpus Christi, Texas Series 2008 Combination Tax and Solid Waste
Revenue Certificate of Obligation Interest and Sinking Fund" (the "Interest and Sinking Fund ") is
hereby created and shall be established and maintained by the City at its official depository. The
Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the
City, and shall be used only for paying the interest on and principal of the Certificates. Any accrued
interest derived from the sale of the Certificates shall be deposited to the credit of the Interest and
Sinking Fund. All ad valorem taxes levied and collected for and on account of the Certificates shall
be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any
of the Certificates are outstanding and unpaid, the governing body of the City shall compute and as-
certain the rate and amount of ad valorem tax, based on the latest approved tax rolls of the City, with
full allowances being made for tax delinquencies and the cost of tax collections, which will be suffi-
cient to raise and produce the money required to pay the interest on the Certificates as such interest
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comes due, and to provide a sinking fund to pay the principal ofthe Certificates as such principal ma-
tures, but never less than 2% of the original amount of the Certificates as a sinking fund each year.
Such rate and amount of ad valorem tax is hereby ordered to be levied against all taxable property
in the City for each year while any of the Certificates are outstanding and unpaid, and said ad valorem
tax shall be assessed and collected each such year and deposited to the credit of the Interest and
Sinking Fund. The ad valorem taxes necessary to pay the interest on and principal ofthe Certificates,
as such interest comes due and such principal matures or comes due through operation of the
mandatory sinking fund redemption to the extent provided in the FORM OF CERTIFICATE, are
hereby levied and ordered to be levied and pledged for such payment, within the limit prescribed by
law. There shall be appropriated from the General Fund to deposit into the Interest and Sinking Fund
moneys as may be necessary to pay the first scheduled interest payment on the Certificates.
Section 9. REVENUES. That the Certificates are additionally secured by and shall be
payable from and secured by the revenues from the Issuer's Solid Waste System remaining after
payment of all maintenance and operation expenses thereof and all other obligations now or hereafter
payable therefrom(including, without limitation, the Series 2000 Certificates of Obligation, the Series
2004 Certificates of Obligation, the Series 2005 Certificates of Obligation and the Series 2006
Certificates of Obligation), constituting "Surplus Revenues ". The Surplus Revenues are pledged by
the City pursuant to authorityofChapter 363, Texas Health and Safety Code, particularly Subchapter
G thereof. The Issuer shall deposit such Surplus Revenues to the credit of the Interest and Sinking
Fund created pursuant to Section 8, to the extent necessary to pay the principal and interest on the
Certificates. Notwithstanding the requirements of Section 8, if Surplus Revenues are actually on
deposit or budgeted for deposit in the Interest and Sinking Fund in advance of the time when ad
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valorem taxes are scheduled to be levied for any year, then the amount of taxes which otherwise
would have been required to be levied pursuant to Section 8 may be reduced to the extent and by the
amount of the Surplus Revenues then on deposit in the Interest and Sinking Fund or budgeted for de-
posit herein. The City anticipates that the Surplus Revenues shall be sufficient to meet the annual
debt service requirements of the Certificates and intends to use Surplus Revenues to pay such debt
service.
Section 10. TRANSFER. That the City shall do any and all things necessary to accomplish
the transfer of monies to the Interest and Sinking Fund of this issue in ample time to pay such items
of principal and interest.
Section 11. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this
Ordinance shall be secured in the manner and to the fullest extent permitted or required by law for
the security of public funds, and the Interest and Sinking Fund shall be used only for the purposes and
in the manner permitted or required by this Ordinance. Chapter 1208, Texas Government Code,
applies to the issuance of the Certificates and the pledge of ad valorem taxes and the Surplus
Revenues granted by the City under Sections 8 and 9, and such pledge is therefore valid, effective,
and perfected. If Texas law is amended at any time while the Certificates are outstanding and unpaid
such that the pledge of the ad valorem taxes and Surplus Revenues granted by the City is to be
subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, then in order to
preserve to the registered owners of the Certificates the perfection of the security interest in said
pledge, the City agrees to take such measures as it determines are reasonable and necessary under
Texas law to comply with the applicable provisions of Chapter 9, Texas Business & Commerce Code
and enable a filing to perfect the security interest in said pledge to occur.
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Section 12. DEFEASANCE OF CERTIFICATES. (a) Defeased Certificates. That any
Certificate and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a
"Defeased Certificate ") within the meaning of this Ordinance, except to the extent provided in
subsection (d) of this Section, when payment of the principal of such Certificate, plus interest thereon
to the due date (whether such due date be by reason of maturity or otherwise) either (i) shall have
been made or caused to be made in accordance with the terms thereof, or (ii) shall have been provided
for on or before such due date by irrevocably depositing with or making available to the Paying
Agent /Registrar in accordance with an escrow agreement or other instrument (the "Future Escrow
Agreement ") for such payment (1) lawful money of the United States of America sufficient to make
such payment or (2) Defeasance Securities that mature as to principal and interest in such amounts
and at such times as will insure the availability, without reinvestment, of sufficient money to provide
for such payment, and when proper arrangements have been made by the Issuer with the Paying
Agent/Registrar for the payment of its services until all Defeased Certificates shall have become due
and payable. At such time as a Certificate shall be deemed to be a Defeased Certificate hereunder,
as aforesaid, such Certificate and the interest thereon shall no longer be secured by, payable from, or
entitled to the benefits of, the ad valorem taxes or revenues herein levied and pledged as provided in
this Ordinance, and such principal and interest shall be payable solely from such money or Defeasance
Securities. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby
provided that any determination not to redeem Defeased Certificates that is made in conjunction with
the payment arrangements specified in subsection 12(a)(i) or (ii) shall not be irrevocable, provided
that in the proceedings providing for such payment arrangements, the Issuer expressly (1) reserves
the right to call the Defeased Certificates for redemption; (2) gives notice of the reservation of that
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right to the owners of the Defeased Certificates immediately following the making of the payment
arrangements; and (3) directs that notice ofthe reservation be included in any redemption notices that
it authorizes.
(b) Investment in Defeasance Securities. Any moneys so deposited with the Paying
Agent/Registrar may at the written direction of the Issuer be invested in Defeasance Securities,
maturing in the amounts and times as hereinbefore set forth, and all income from such Defeasance
Securities received by the Paying Agent/Registrar that is not required for the payment of the
Certificates and interest thereon, with respect to which such money has been so deposited, shall be
turned over to the Issuer, or deposited as directed in writing by the Issuer. Any Future Escrow
Agreement pursuant to which the money and/or Defeasance Securities are held for the payment of
Defeased Certificates may contain provisions permitting the investment or reinvestment of such
moneys in Defeasance Securities or the substitution of other Defeasance Securities upon the
satisfaction of the requirements specified in subsection 12(a)(i) or (ii). All income from such
Defeasance Securities received by the Paying Agent/Registrar which is not required for the payment
of the Defeased Certificates, with respect to which such money has been so deposited, shall be
remitted to the Issuer or deposited as directed in writing by the Issuer.
(c) Defeasance Securities Defined. The term "Defeasance Securities" means (i) direct,
noncallable obligations ofthe United States of America, including obligations that are unconditionally
guaranteed by the United States of America, (ii) noncallable obligations of an agency or
instrumentality of the United States of America, including obligations that are unconditionally
guaranteed or insured by the agency or instrumentality and that, on the date of the purchase thereof
are rated as to investment quality by a nationally reco ' nixed investment rating firm not less than AAA
or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality,
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or other political subdivision of a state that have been refunded and that, on the date on the date the
governing body of the Issuer adopts or approves the proceedings authorizing the financial
arrangements are rated as to investment quality by a nationally recognized investment rating firm not
less than AAA or its equivalent.
(d) Paying Agent /Registrar Services. Until all Defeased Certificates shall have become
due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent /Registrar for
such Defeased Certificates the same as if they had not been defeased, and the Issuer shall make proper
arrangements to provide and pay for such services as required by this Ordinance.
Section 13. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
CERTIFICATES. (a) Replacement Certificates. That in the event any outstanding Certificate is
damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed,
executed, and delivered, a new certificate of the same principal amount, maturity, and interest rate,
as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for such Certificate
in the manner hereinafter provided.
(b) Application for Replacement Certificates. That application for replacement of damaged,
mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner thereof to the
Paying Agent/Registrar. In every case of loss, theft, or destruction of a Certificate, the registered
owner applying for a replacement certificate shall furnish to the City and to the Paying
Agent/Registrar such security or indemnity as maybe required by them to save each of them harmless
from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a
Certificate, the registered owner shall furnish to the City and to the Paying Agent /Registrar evidence
to their satisfaction of the loss, theft, or destruction of such Certificate, as the case may be. In every
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case of damage or mutilation of a Certificate, the registered owner shall surrender to the Paying
Agent/Registrar for cancellation the Certificate so damaged or mutilated.
(c) No Default Occurred. That notwithstanding the foregoing provisions of this Section, in
the event any such Certificate shall have matured, and no default has occurred which is then
continuing in the payment of the principal of or interest on this Certificate, the City may authorize the
payment of the same (without surrender thereof except in the case of a damaged or mutilated
Certificate) instead of issuing a replacement certificate, provided security or indemnity is famished
as above provided in this Section.
(d) Charge for Issuing Replacement Certificates. That prior to the issuance of any
replacement certificate, the Paying Agent/Registrar shall charge the registered owner of such
Certificate with all legal, printing, and other expenses in connection therewith. Every replacement
Certificate issued pursuant to the provisions of this Section by virtue of the fact that any Certificate
is lost, stolen, or destroyed shall constitute a contractual obligation of the City whether or not the
lost, stolen, or destroyed Certificate shall be found at any time, or be enforceable by anyone, and shall
be entitled to all the benefits of this Ordinance equally and proportionately with any and all other
Certificates duly issued under this Ordinance.
(e) Authority for Issuing Replacement Certificates. That in accordance with Chapter 1206,
Texas Government Code, this Section of this Ordinance shall constitute authority for the issuance of
any such replacement Certificate without necessity of further action by the City or any other body or
person, and the duty of the replacement of such Certificates is hereby authorized and imposed upon
the Paying Agent /Registrar, and the Paying Agent/Registrar shall authenticate and deliver such
Certificates in the form and manner and with the effect, as provided in Section 5(a) of this Ordinance
for Certificates issued in conversion and exchange of other Certificates.
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Section 14. COVENANTS REGARDING TAX EXEMPTION. That the City covenants
to refrain from any action which would adversely affect, or to take such action as to ensure, the
treatment of the Certificates as obligations described in Section 103 of the Code, the interest on
which is not includable in the "gross income" of the holder for purposes of federal income taxation.
In furtherance thereof, the City covenants as follows:
(a) to take any action to assure that no more than 10 percent of the proceeds of
the Certificates (less amounts deposited to a reserve fund, if any) are used for any "private
business use," as defined in section 141(6)(6) of the Code or, if more than 10 percent of the
proceeds are so used, that amounts, whether or not received by the City, with respect to such
private business use, do not, under the terms of this Ordinance or any underlying
arrangement, directly or indirectly, secure or provide for the payment ofmore than 10 percent
of the debt service on the Certificates, in contravention of Section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds 5 percent of the proceeds of the Certificates (less
amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used
for a "private business use" which is "related" and not "disproportionate ", within the meaning
of Section 141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or five percent of the proceeds of the Certificates (less amounts deposited into
a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than
state or local governmental units, in contravention of Section 141(c) of the Code;
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(d) to refrain from taking any action which would otherwise result in the
Certificates being treated as "specified private activity bonds" within the meaning of Section
141(b) of the Code;
(e) to refrain from taking any action that would result in the Certificates being
"federally guaranteed" within the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the Certificates, directly
or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in Section 148(b)(2) of the Code) which produces a
materially higher yield over the term of the Certificates, other than investment property
acquired with --
(1) proceeds ofthe Certificates invested for a reasonable temporary period
of three years or less until such proceeds are needed for the purpose for which the
Certificates are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning
of Section 1.148 -1(b) of the Treasury Regulations, and
(3)
amounts deposited in any reasonably required reserve or replacement
fund to the extent such amounts do not exceed 10 percent of the proceeds of the
Certificates;
(g) to otherwise restrict the use of the proceeds of the Certificates or amounts
treated as proceeds of the Certificates, as maybe necessary, so that the Certificates do not
otherwise contravene the requirements of Section 148 of the Code (relating to arbitrage) and,
to the extent applicable, Section 149(d) of the Code (relating to advance refundings); and
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(h) to pay to the United States of America at least once during each five -year
period (beginning on the date of delivery of the Certificates) an amount that is at least equal
to 90 percent of the "Excess Earnings," within the meaning of Section 148(0 of the Code and
to pay to the United States of America, not later than 60 days after the Certificates have been
paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings
under Section 148(0 of the Code.
For purposes of the foregoing (a) and (b), the Issuer understands that the term "proceeds" includes
"disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds,
transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of
issuance of the Certificates. It is the understanding of the City that the covenants contained herein
are intended to assure compliance with the Code and any regulations or rulings promulgated by the
U.S. Department of the Treasury pursuant thereto. In the event that regulations or ruling are
hereafter promulgated which modify or expand provisions of the Code, as applicable to the
Certificates, the City will not be required to comply with any covenant contained herein to the extent
that such failure to comply, in the opinion of nationally- recognized bond counsel, will not adversely
affect the exemption from federal income taxation of interest on the Certificates under Section 103
of the Code. In the event that regulations or rulings are hereafter promulgated which impose
additional requirements which are applicable to the Certificates, the City agrees to comply with the
additional requirements to the extent necessary, in the opinion ofnationally- recognized bond counsel,
to preserve the exemption from federal income taxation of interest on the Certificates under Section
103 of the Code. In furtherance of such intention, the City hereby authorizes and directs the Mayor,
the City Manager and the Director of Financial Services to execute any documents, certificates or
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reports required by the Code, and to make such elections on behalf of the City which may be
permitted by the Code as are consistent with the purpose for the issuance of the Certificates.
In order to facilitate compliance with clause (h) above, a "Rebate Fund" is hereby established
by the City for the sole benefit of the United States of America, and the Rebate Fund shall not be
subject to the claim of any other person, including without limitation the holders of the Certificates.
The Rebate Fund is established for the additional purpose of compliance with Section 148 of the
Code.
Section 15. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. That the Issuer covenants to account for the expenditure of proceeds from the sale of
the Certificates and any investment earnings thereon to be used for the purposes described in Section
1 of this Ordinance (such purpose referred to herein and Section 16 hereof as a "Project ") on its
books and records by allocating proceeds to expenditures within 18 months of the later of the date
that (a) the expenditure on a Project is made or (b) such Project is completed. The foregoing
notwithstanding, the Issuer shall not expend such proceeds or investment earnings more than 60 days
after the earlier of (a) the fifth anniversary of the date of delivery of the Certificates or (b) the date
the Certificates are retired, unless the Issuer obtains an opinion o f nationally-recognized bond counsel
substantially to the effect that such expenditure will not adversely affect the tax - exempt status of the
Certificates. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if
it obtains an opinion that such failure to comply will not adversely affect the excludability for federal
income tax purposes from gross income of the interest.
Section 16. DISPOSITION OF PROJECT. That the Issuer covenants that the property
constituting a Project will not be sold or otherwise disposed in a transaction resulting in the receipt
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by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally -
recognized bond counsel substantially to the effect that such sale or other disposition will not
adversely affect the tax- exempt status ofthe Certificates. For purposes of the foregoing, the portion
ofthe property comprising personal property and disposed in the ordinary course shall not be treated
as a transaction resulting in the receipt of cash or other compensation. For purposes hereof the
Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to
comply will not adversely affect the excludability for federal income tax purposes from gross income
of the interest.
Section 17. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES.
That the Mayor of the City is hereby authorized to have control ofthe Certificates initially issued and
delivered hereunder and all necessary records and proceedings pertaining to the Certificates pending
their delivery and their investigation, examination, and approval by the Attorney General, and their
registration by the Comptroller. Upon registration of the Certificates the Comptroller (or a deputy
designated in writing to act for the Comptroller) shall manually sign the Comptroller's Certificate
attached to such Certificates, and the seal of the Comptroller shall be impressed, or placed in
facsimile, on the Comptroller's Certificate. The City Council hereby authorizes the payment of the
fee of the Office of the Attorney General for the examination of the proceedings relating to the
issuance of the Certificates, in the amount determined in accordance with the provisions of Section
1202.004, Texas Government Code.
Section 18. SALE OF CERTIFICATES. (a) Sale to Underwriters. That the sale of the
Certificates to Morgan Keegan & Co., Inc., as representative for the underwriters named in the
Purchase Contract (the "Purchase Contract ") between the City and the underwriters named therein
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(the "Underwriters "), at the purchase price described in the Purchase Contract, is hereby authorized,
ratified and confirmed. One Certificate in the principal amount maturing on each maturity date as set
forth in Schedule I attached to this Ordinance shall be delivered to the Underwriters, and the
Underwriters shall have the right to exchange such Certificates as provided in Section 5 hereof
without cost.
(b) Execution of Purchase Contract. That the Purchase Contract setting forth the terms of
the sale of the Certificates to the Underwriters, in substantially the form attached to this Ordinance,
is hereby accepted, approved and authorized to be delivered in executed form to the Underwriters.
(c) Bond Insurance. The Mayor, City Manager and the Director of Fiscal Services each is
authorized, in connection with effecting the sale of the Certificates, to obtain from (the
"Insurer ") a municipal bond insurance policy in support of the Certificates. To that end, for so long
as such policy is in effect, the requirements of the Insurer relating to the issuance of said policy is
incorporated by reference into this Ordinance and made a part hereof for all purposes,
notwithstanding any other provision of this Ordinance to the contrary.
Section 19. APPROVAL OF OFFICIAL STATEMENT. That the "Official Statement"
prepared in connection with the sale of the Certificates, in substantially the form attached to this
Ordinance, is hereby accepted, approved and authorized to be delivered in executed form to the
Underwriters. The use of the "Preliminary Official Statement" prepared in connection with the sale
of the Certificates is hereby ratified.
Section 20. CONTINUING DISCLOSURE OBLIGATION. (a) Definitions. That as
used in this Section, the following terms have the meanings ascribed to such terms below:
"MAC" means the Muncipal Advisory Council of Texas.
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"MSRB" means the Municipal Securities Rulemaking Board.
"NRMSIR" means each person whom the SEC or its staff has determined to be a
nationally recognized municipal securities information repository within the meaning ofthe Rule from
time to time.
"Rule" means SEC Rule 15c2 -12, as amended from time to time
"SEC" means the United States Securities and Exchange Commission.
"SID" means any person designated by the State of Texas or an authorized
department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state
information depository within the meaning of the Rule from time to time.
(b) Annual Reports. (i) The City shall provide annually to each NRMSIR and any SID,
within six months after the end of each fiscal year ending in or after 2008, financial information and
operating data with respect to the City of the general type included in the final Official Statement
authorized by Section 19 of this Ordinance, being the information described in Exhibit B hereto. Any
financial statements so to be provided shall be (1) prepared in accordance with the accounting
principles described in Exhibit B hereto, or such other accounting principles as the City may be
required to employ from time to time pursuant to state law or regulation, and (2) audited, if the City
commissions an audit of such statements and the audit is completed within the period during which
they must be provided. If the audit of such financial statements is not complete within such period,
then the City shall provide unaudited financial statements by the required time, and shall provide
audited financial statements for the applicable fiscal year to each NRMSIR and any SID, when and
if the audit report on such statements become available.
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(ii) If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change
(and of the date of the new fiscal year end) prior to the next date by which the City otherwise would
be required to provide financial information and operating data pursuant to this Section. The financial
information and operating data to be provided pursuant to this Section may be set forth in full in one
or more documents or may be included by specific reference to any document (including an official
statement or other offering document, if it is available from the MSRB) that theretofore has been
provided to each NRMSIR and any SID or filed with the SEC.
(c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the
MSRB, in a timely manner, of any of the following events with respect to the Certificates of
Obligation, if such event is material within the meaning of the federal securities laws:
1. Principal and interest payment delinquencies;
2. Non - payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax- exempt status of the
Certificates;
7. Modifications to rights of holders of the Certificates;
8. Certificate calls;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the
Certificates; and
11. Rating changes.
The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any
failure by the City to provide financial information or operating data in accordance with subsection
(b) of this Section by the time required by such subsection. Any filing under this Section may be
made solely by transmitting such filing to the MAC as provided at http: hvww.disdosureusa.org,
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unless the SEC has withdrawn the interpretive advice stated in its letter to the MAC dated September
7, 2004.
(d) Limitations, Disclaimers, and Amendments. (i) The City shall be obligated to observe
and perform the covenants specified in this Section for so long as, but only for so long as, the City
remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except
that the City in any event will give notice of any deposit made in accordance with this Ordinance or
applicable law that causes Certificates no longer to be outstanding.
(ii) The provisions of this Section are for the sole benefit of the registered owners and
beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any
benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City
undertakes to provide only the financial information, operating data, financial statements, and notices
which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to
provide any other information that may be relevant or material to a complete presentation of the City's
financial results, condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City does not
make any representation or warranty concerning such information or its usefulness to a decision to
invest in or sell Certificates at any future date.
(iii) UNDER NO CIRCUMSTANCES SHALL THE . CITY BE LIABLE TO THE
REGISTERED OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER
PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART
FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON
ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND
REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
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ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC
PERFORMANCE.
(iv) No default by the City in observing or performing its obligations under this Section shall
comprise a breach of or default under the Ordinance for purposes of any other provision of this
Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the
duties of the City under federal and state securities laws.
(v) The provisions of this Section maybe amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or a change
in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this
Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the
primary offering ofthe Certificates in compliance with the Rule, taking into account any amendments
or interpretations ofthe Rule since such offering as well as such changed circumstances and (2) either
(a) the registered owners of a majority in aggregate principal amount (or any greater amount required
by any other provision of this Ordinance that authorizes such an amendment) of the outstanding
Certificates consent to such amendment or (b) a person that is unaffiliated with the City (such as
nationally recognized bond counsel) determined that such amendment will not materially impair the
interest of the registered owners and beneficial owners of the Certificates. If the City so amends the
provisions of this Section, it shall include with any amended financial information or operating data
next provided in accordance with subsection (b) of this Section an explanation, in narrative form, of
the reason for the amendment and of the impact of any change in the type of financial information or
operating data so provided. The City may also amend or repeal the provisions of this continuing
disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of
final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the
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extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing
or selling Certificates in the primary offering of the Certificates.
Section 21. DEFAULT AND REMEDIES. (a) Events of Default. Each of the following
occurrences or events for the purpose of this Ordinance is hereby declared to be an "Event of
Default ":
(i) the failure to make payment of the principal of or interest on any ofthe Certificates
when the same becomes due and payable; or
(ii) default in the performance or observance of any other covenant, agreement or
obligation of the City, the failure to perform which materially, adversely affects the rights of
the registered owners ofthe Certificates, including, but not limited to, their prospect or ability
to be repaid in accordance with this Ordinance, and the continuation thereof for a period of
60 days after notice of such default is given by any registered owner to the City.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any registered
owner or an authorized representative thereof, including, but not limited to, a trustee or
trustees therefor, may proceed against the City, or any official, officer or employee ofthe City
in their official capacity, for the purpose of protecting and enforcing the rights of the
registered owners under this Ordinance, by mandamus or other suit, action or special
proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted
by law, including the specific performance of any covenant or agreement contained herein,
or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the
registered owners hereunder or any combination of such remedies.
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(ii) It is provided that all such proceedings shall be instituted and maintained for the
equal benefit of all registered owners of Certificates then outstanding.
(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall be cumulative and shall
be in addition to every other remedy given hereunder or under the Certificates or now or
hereafter existing at law or in equity; provided, however, that notwithstanding any other
provision of this Ordinance, the right to accelerate the debt evidenced by the Certificates shall
not be available as a remedy under this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be deemed a
waiver of any other available remedy.
(iii) By accepting the delivery of a Certificate authorized under this Ordinance, such
registered owner agrees that the certifications required to effectuate any covenants or
representations contained in this Ordinance do not and shall never constitute or give rise to
a personal or pecuniary liability or charge against the officers, employees or trustees of the
City or the City Council.
(iv) None of the members of the City Council, nor any other official or officer, agent,
or employee of the City, shall be charged personally by the registered owners with any
liability, or be held personally liable to the registered owners under any term or provision of
this Ordinance, or because of any Event of Default or alleged Event of Default under this
Ordinance.
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Section 22. DTC REGISTRATION. That the Certificates initially shall be issued and
delivered in such manner that no physical distribution of the Certificates will be made to the public,
and The Depository Trust Company ("DTC"), New York, New York, initially will act as depository
for the Certificates. DTC has represented that it is a limited purpose trust company incorporated
under the laws of the State of New York, a member of the Federal Reserve System, a "clearing
corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing
agency" registered under Section 17A of the Securities Exchange Act of 1934, as amended, and the
City accepts, but in no way verifies, such representations. The Certificates initially authorized by this
Ordinance shall be delivered to and registered in the name of CEDE & CO., the nominee of DTC.
It is expected that DTC will hold the Certificates on behalf of the Underwriters and their respective
participants. So long as each Certificate is registered in the name of CEDE & CO., the Paying
Agent/Registrar shall treat and deal with DTC the same in all respects as if it were the actual and
beneficial owner thereof. It is expected that DTC will maintain a book -entry system which will
identify ownership ofthe Certificates in Authorized Denominations, with transfers of ownership being
effected on the records of DTC and its participants pursuant to rules and regulations established by
them, and that the Certificates initially deposited with DTC shall be immobilized and not be further
exchanged for substitute Certificates except as hereinafter provided. The City is not responsible or
liable for any functions of DTC, will not be responsible for paying any fees or charges with respect
to its services, will not be responsible or liable for maintaining, supervising, or reviewing the records
of DTC or its participants, or protecting any interests or rights of the beneficial owners of the
Certificates. It shall be the duty of the DTC Participants, as defined in the Official Statement herein
approved, to make all arrangements with DTC to establish this book -entry system, the beneficial
ownership of the Certificates, and the method of paying the fees and charges of DTC. The City does
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not represent, nor does it in any way covenant that the initial book -entry system established with DTC
will be maintained in the future. Notwithstanding the initial establishment ofthe foregoing book -entry
system with DTC, if for any reason any of the originally delivered Certificates is duly filed with the
Paying Agent/Registrar with proper request for transfer and substitution, as provided for in this
Ordinance, substitute Certificates will be duly delivered as provided in this Ordinance, and there will
be no assurance or representation that any book -entry system will be maintained for such Certificates.
In connection with the initial establishment of the foregoing book -entry system with DTC, the City
heretofore has executed a "Blanket Letter of Representations" prepared by DTC in order to
implement the book -entry system described above.
Section 23. INTEREST EARNINGS; PREMIUM. That interest earnings derived from the
investment of proceeds from the sale of the Certificates shall be used along with other proceeds for
the construction of the permanent improvements set forth in Section 1 hereof for which the
Certificates are issued; provided that after completion of such permanent improvements, if any of
such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and
Sinking Fund. It is further provided, however, that any interest earnings on proceeds which are
required to be rebated to the United States of America pursuant to this Ordinance hereof in order to
prevent the Certificates from being arbitrage bonds shall be so rebated and not considered as interest
earnings for the purposes of this Section. All premium received in connection with the sale of the
Certificates shall be used in a manner consistent with the provisions of Section 1201.042, Texas
Government Code. The City Council hereby finds that the sum of the aggregate principal amount of
the Certificates and premium, if any, received as part of the purchase price for the Certificates to be
expended for the construction of the permanent improvements set forth in Section 1 hereof will not
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exceed the maximum amount of Certificates authorized to be sold in the notice of intention published
in connection with the sale of the Certificates.
Section 24. CONFLICTING PROCEEDINGS. That all ordinances and resolutions or
parts thereof in conflict herewith are hereby repealed.
Section 25. OFFICIALS AUTHORIZED TO ACT ON BEHALF OF THE CITY. That
the Mayor, the City Secretary, the City Manager, any Assistant City Manager or the Director of
Financial Services of the City, and all other officers, employees, and agents of the City, and each of
them, shall be and they are hereby expressly authorized, empowered, and directed from time to time
and at any time to do and perform all such acts and things and to execute, acknowledge, and deliver
in the name and under the seal and on behalf of the City all such instruments, whether herein
mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this
Ordinance, the Certificates, the offering documents prepared in connection with the sale of the
Certificates, or the Paying Agent /Registrar Agreement. In case any officer whose signature appears
on any Certificate shall cease to be such officer before the delivery of such Certificate, such signature
shall nevertheless be valid and sufficient for all purposes the same as if he or she had remained in
office until such delivery.
Section 26. RULES OF CONSTRUCTION. That for all purposes ofthis Ordinance, unless
the context requires otherwise, all references to designated Sections and subsections are to the
Sections and subsections ofthis Ordinance. The words "herein ", "hereof" and "hereunder" and other
words of similar import refer to this Ordinance as a whole and not to any particular Section or other
subdivision. Except where the context otherwise requires, terms defined in this Ordinance to impart
the singular number shall be considered to include the plural number and vice versa. References to
any named person means that party and its successors and assigns. References to any constitutional,
-33-
-223-
statutory or regulatory provision means such provision as it exists on the date this Ordinance is
adopted by the City and any future amendments thereto or successor provisions thereof. Any
reference to the payment of principal in this Ordinance shall be deemed to include the payment of any
mandatory sinking fund redemption payments as described herein. Any reference to "FORM OF
CERTIFICATE" shall refer to the form of the Certificates set forth in Exhibit A to this Ordinance.
The titles and headings of the Sections and subsections of this Ordinance have been inserted for
convenience of reference only and are not to be considered a part hereof and shall not in any way
modify or restrict any of the terms or provisions hereof. The findings set forth in the preamble to this
Ordinance are hereby incorporated into the body of this Ordinance and made a part hereof for all
purposes.
Section 27. IMMEDIATE EFFECT. That in accordance with the provisions of V.T.C.A.,
Government Code, Section 1201.028, this Ordinance shall be effective immediately upon its adoption
by the City Council.
[Execution page follows]
-34-
—224—
ADOPTED this 9th day of September, 2008.
Mayor, City of Corpus Christi, Texas
ATTEST:
City Secretary, City of Corpus Christi, Texas (SEAL)
APPROVED THIS 9TH DAY OF SEPTEMBER, 2008:
MARY KAY FISCHER, CITY ATTORNEY
-35-
—225—
SCHEDULE
The Certificates shall mature on March 1 in each of the years, in the amounts, and bear interest at the
interest rates per annum, as set forth in the following schedule:
YEARS AMOUNTS ($) INTEREST RATES ( %)
2010 190,000
2011 200,000
2012 210,000
2013 220,000
2014 230,000
2015 245,000
2016 255,000
2017 270,000
2018 280,000
2019 295,000
2020 310,000
2021 330,000
2022 345,000
2023 360,000
2024 380,000
2025 400,000
2026 420,000
2027 440,000
2028 465,000
2029 485,000
2030 510,000
2031 540,000
2032 565,000
2033 595,000
2034 625,000
2035 655,000
2036 690,000
2037 725,000
2038 765,000
-36-
—226—
FORM OF CERTIFICATE
NO. R- $
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTIES OF NUECES AND SAN PATRICIO
CITY OF CORPUS CHRISTI, TEXAS
COMBINATION TAX AND SOLID WASTE REVENUE
CERTIFICATE OF OBLIGATION
SERIES 2008
MATURITY DATE INTEREST RATE ORIGINAL ISSUE DATE CUSIP
September 1, 2008
ON THE MATURITY DATE specified above, THE CITY OF CORPUS CHRISTI,
TEXAS (the "City" or the "Issuer "), being a political subdivision of the State of Texas, hereby
promises to pay to (hereinafter called the "registered owner ") the
principal amount of
DOLLARS
and to pay interest thereon from the Original Issue Date specified above, on March 1, 2009, and
semiannually on each September 1 and March 1 thereafter to the maturity date specified above or
the date of its redemption prior to scheduled maturity, at the interest rate per annum specified
above; except that if this Certificate is required to be authenticated and the date of its
authentication is later than March 1, 2009, such interest is payable semiannually on each
September 1 and March I following such date.
THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money
of the United States of America, without exchange or collection charges. The principal of this
Certificate shall be paid to the registered owner hereof upon presentation and surrender of this
Certificate at maturity, or upon the date fixed for its redemption prior to maturity, at the
corporate trust office in Dallas, Texas (the "Designated Trust Office") of The Bank of New York
Mellon Trust Company, N.A. (the "Paying Agent/Registrar "). The payment of interest on this
Certificate shall be made by the Paying Agent/Registrar to the registered owner hereof as shown
by the Registration Books kept by the Paying Agent/Registrar at the close of business on the 15th
day of the month next preceding such interest payment date by check drawn by the Paying
Agent/Registrar on, and payable solely from, funds of the Issuer required to be on deposit with
the Paying Agent/Registrar for such purpose as hereinafter provided; and such check shall be sent
by the Paying Agent/Registrar by United States mail, first -class postage prepaid, on each such in-
terest payment date, to the registered owner hereof at its address as it appears on the Registration
—227—
Books kept by the Paying Agent/Registrar, as hereinafter described, or by such other method,
acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the
registered owner. The Issuer covenants with the registered owner of this Certificate that no later
than each principal payment and/or interest payment date for this Certificate it will make available
to the Paying Agent/Registrar from the Interest and Sinking Fund as defined by the ordinance
authorizing the Certificates (the "Certificate Ordinance ") the amounts required to provide for the
payment, in immediately available funds, of all principal of and interest on the Certificates, when
due.
IF THE DATE for the payment of the principal of or interest on this Certificate shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Designated Trust Office of the Paying Agent/Registrar is located are authorized by law or ex-
ecutive order to close, or the United States Postal Service is not open for business, then the date
for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal
holiday, or day on which banking institutions are authorized to close, or the United States Postal
Service is not open for business; and payment on such date shall have the same force and effect as
if made on the original date payment was due. Notwithstanding the foregoing, during any period
in which ownership of the Certificates is determined only by a book entry at a securities
depository for the Certificates, any payment to the securities depository, or its nominee or
registered assigns, shall be made in accordance with existing arrangements between the Issuer and
the securities depository.
THIS CERTIFICATE is one of a Series of Certificates (the "Certificates ") dated the
Original Issue Date specified above, authorized in accordance with the Constitution and laws of
the State of Texas in the principal amount of $12,000,000 FOR THE PURPOSE OF
PROVIDING PART OF THE FUNDS FOR PAYING CONTRACTUAL OBLIGATIONS TO
BE INCURRED FOR THE CITY, TO -WIT: the construction of improvements to the City's solid
waste facilities, including, without limitation, paying contractual obligations to be incurred with
respect to the development of the Cefe Valenzuela landfill in the vicinity of County Road 20 and
Farm Road 2444, for the construction of municipal landfill waste disposal cells, internal roadways
and pavement, cover systems, gas collection systems, equipment, drainage facilities, maintenance
facilities, extension of the leachate collection and management system, liners, environmental
monitoring equipment, and other improvements necessary to operate the landfill, and
improvements to the J. C. Elliott landfill in the vicinity of State Highway 286 (Chapman Ranch
Road) and State Highway 357 (Saratoga Boulevard) including construction of final cover
systems, gas management system, ground water monitoring, transfer station improvements and
equipment, scalehouse building improvements, internal roadways and pavement, and other
improvements necessary to operate said facility, and the payment of fiscal, engineering and legal
fees incurred in connection therewith.
ON MARCH 1, 2018, or on any date thereafter, the Certificates of this Series maturing on
March 1, 2019 and thereafter may be redeemed prior to their scheduled maturities, at the option
of the Issuer, with funds derived from any available and lawful source, as a whole, or in part
(provided that a portion of a Certificate may be redeemed only in an integral multiple of $5,000),
at par and accrued interest to the date fixed for redemption. The years of maturity of the
Certificates called for redemption at the option of the Issuer prior to stated maturity shall be
-228-
selected by the Issuer. The Certificates or portions thereof redeemed within a maturity shall be
selected at random and by lot by the Paying Agent/Registrar; provided, that during any period in
which ownership of the Certificates is determined only by a book entry at a securities depository
for the Certificates, if fewer than all of the Certificates of the same maturity and bearing the same
interest rate are to be redeemed, the particular Certificates of such maturity and bearing such
interest rate shall be selected in accordance with the arrangements between the Issuer and the
securities depository.
THE CERTIFICATES are also subject to mandatory redemption in part by lot pursuant to
the terms of the Certificate Ordinance, on March 1 in each of the years 20_ through 20_, with
respect to Certificates maturing March 1, 20_, in the following years and in the following
amounts, at a price equal to the principal amount thereof and accrued and unpaid interest to the
date of redemption, without premium:
Year Principal Amount ($)
*Final Maturity
To the extent, however, that Certificates subject to sinking fund redemption have been previously
purchased or called for redemption in part and otherwise than from a sinking fund redemption
payment, each annual sinking fund payment for such Certificate shall be reduced by the amount
obtained by multiplying the principal amount of Certificates so purchased or redeemed by the ratio
which each remaining sinking fund redemption payment for such Certificates bears to the total
remaining sinking fund payments, and by rounding each such payment to the nearest $5,000
integral; provided, that during any period in which ownership of the Certificates is determined
only by a book entry at a securities depository for the Certificates, the particular Certificates to be
called for mandatory redemption shall be selected in accordance with the arrangements between
the Issuer and the securities depository.
AT LEAST 30 days prior to the date fixed for any such redemption, (a) a written notice of
such redemption shall be given to the registered owner of each Certificate or a portion thereof
being called for redemption by depositing such notice in the United States mail, first -class postage
prepaid, addressed to each such registered owner at his address shown on the Registration Books
of the Paying Agent/Registrar and (b) notice of such redemption shall be published one (1) time in
a financial journal or publication of general circulation in the United States of America or the
State of Texas carrying as a regular feature notices of municipal bonds called for redemption,
provided, however, that the failure to send, mail, or receive such notice described in (a) above, or
any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness
of the proceedings for the redemption of any Certificate, and the Certificate Ordinance provides
that the publication of notice as described in (b) above shall be the only notice actually required in
connection with or as a prerequisite to the redemption of any Certificates. By the date fixed for
any such redemption due provision shall be made by the Issuer with the Paying Agent/Registrar
for the payment of the required redemption price for this Certificate or the portion hereof which is
to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such notice
of redemption is given, and if due provision for such payment is made, all as provided above, this
-229-
Certificate, or the portion hereof which is to be so redeemed, thereby automatically shall be
redeemed prior to its scheduled maturity, and shall not bear interest after the date fixed for its
redemption, and shall not be regarded as being outstanding except for the right of the registered
owner to receive the redemption price plus accrued interest to the date fixed for redemption from
the Paying Agent/Registrar out of the funds provided for such payment. The Paying
Agent/Registrar shall record in the Registration Books all such redemptions of principal of this
Certificate or any portion hereof. If a portion of any Certificate shall be redeemed a substitute
Certificate or Certificates having the same maturity date, bearing interest at the same rate, in any
denomination or denominations in any integral multiple of $5,000, at the written request of the
registered owner, and in aggregate principal amount equal to the unredeemed portion thereof will
be issued to the registered owner upon the surrender thereof for cancellation, at the expense of
the Issuer, all as provided in the Certificate Ordinance.
ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered
certificates, without interest coupons, in the denomination of any integral multiple of $5,000. As
provided in the Certificate Ordinance, this Certificate, or any unredeemed portion hereof, may, at
the request of the registered owner or the assignee or assignees hereof, be assigned, transferred,
and exchanged for a like aggregate principal amount of fully registered certificates, without
interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case
may be, having the same maturity date, and bearing interest at the same rate, in any denomination
or denominations in any integral multiple of $5,000 as requested in writing by the appropriate
registered owner, assignee, or assignees, as the case may be, upon surrender of this Certificate to
the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in accordance with
the form and procedures set forth in the Certificate Ordinance. Among other requirements for
such assignment and transfer, this Certificate must be presented and surrendered to the Paying
Agent/Registrar, together with proper instruments of assignment, in form and with guarantee of
signatures satisfactory to the Paying Agent/Registrar, evidencing assignment of this Certificate or
any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in
whose name or names this Certificate or any such portion or portions hereof is or are to be
transferred and registered. The form of Assignment printed or endorsed on this Certificate may
be executed by the registered owner to evidence the assignment hereof; but such method is not
exclusive, and other instruments of assignment satisfactory to the Paying Agent /Registrar may be
used to evidence the assignment of this Certificate or any portion or portions hereof from time to
time by the registered owner. The Issuer shall pay the Paying Agent/Registrar's reasonable
standard or customary fees and charges for transferring and exchanging any Certificate or portion
thereof. In any circumstance, any taxes or governmental charges required to be paid with respect
thereto shall be paid by the one requesting such assignment, transfer, or exchange as a condition
precedent to the exercise of such privilege. In any circumstance, neither the Issuer nor the Paying
Agent /Registrar shall be required (1) to make any transfer or exchange during a period beginning
at the opening of business 30 days before the day of the first mailing of a notice of redemption of
certificates and ending at the close of business on the day of such mailing, or (2) to transfer or
exchange any certificates so selected for redemption when such redemption is scheduled to occur
within 30 calendar days.
-230-
WHENEVER the beneficial ownership of this Bond is determined by a book entry at a
securities depository for the Certificates, the foregoing requirements of holding, delivering or
transferring this Certificate shall be modified to require the appropriate person or entity to meet
the requirements of the securities depository as to registering or transferring the book entry to
produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Certificates is changed by the Issuer,
resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Certificate Ordinance
that it promptly will appoint a competent and legally qualified substitute therefor, and cause
written notice thereof to be mailed to the registered owners of the Certificates.
BY BECOMING the registered owner of this Certificate, the registered owner thereby
acknowledges all of the terms and provisions of the Certificate Ordinance, agrees to be bound by
such terms and provisions, acknowledges that the Certificate Ordinance is duly recorded and
available for inspection in the official minutes and records of the Issuer, and agrees that the terms
and provisions of this Certificate and the Certificate Ordinance constitute a contract between each
registered owner hereof and the Issuer.
IT IS HEREBY certified, recited and covenanted that this Certificate has been duly and
validly authorized, issued, and delivered; that all acts, conditions, and things required or proper to
be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of
this Certificate have been performed, existed, and been done in accordance with law; that this
Certificate is a direct obligation of the City, issued on the full faith and credit thereof that annual
ad valorem taxes sufficient to provide for the payment of the interest on and principal of this
Certificate, as such interest comes due and such principal matures, have been levied and ordered
to be levied against all taxable property in the City, and have been pledged for such payment,
within the limit prescribed by law; and that the "Surplus Revenues" (as defined in the Certificate
Ordinance) of the City's Solid Waste System remaining after payment of all maintenance and
operation expenses thereof, and all other obligations now or hereafter payable therefrom, as
provided in the Certificate Ordinance, have . been pledged as additional security for the
Certificates.
IN WITNESS WHEREOF, this Certificate has been signed with the manual or facsimile
signature of the Mayor of the City, attested by the manual or facsimile signature of the City
Secretary of the City, and the official seal of the City has been duly affixed to, impressed, or
placed in facsimile, on this Certificate.
xxxxx xxxxx
City Secretary, City of Mayor, City of Corpus Christi, Texas
Corpus Christi, Texas
(SEAL)
—231—
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the attached ordinance, an
emergency exists requiring suspension of that Charter rule which requires an
ordinance to be considered and voted upon at two regular meetings. Therefore, I/we
request that you suspend said Charter rule and finally pass this ordinance on the date
of its introduction, or at the present meeting of the City Council.
Respectfully,
Council Members
Res ' e ' Ily,
♦.i/itA AtL/.
my Ga
Mayor, City 4 Corpus Christi
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
-232-
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT /REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate of Obligation has been issued under the provisions
of the Certificate Ordinance described on the face of this Certificate of Obligation; and that this
Certificate of Obligation has been issued in exchange for or replacement of a certificate of
obligation, certificates of obligation, or a portion of a certificate of obligation or certificates of
obligation of an issue which originally was approved by the Attorney General of the State of
Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Dated
THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.
By
Authorized Representative
-233-
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto
(Please insert Social Security or Taxpayer Identification Number of Transferee)
(Please print or typewrite name and address, including
zip code of Transferee)
the within Certificate of Obligation and all rights
thereunder, and hereby irrevocably constitutes and appoints
attorney to register the transfer of the within Certificate
of Obligation on books kept for registration thereof, with
full power of substitution in the premises.
Dated:
Signature Guaranteed:
NOTICE: Signature(s) must
be guaranteed by a member
firm of the New York Stock
Exchange or a commercial
bank or trust company.
NOTICE: The signature above must
correspond with the name of the
Registered Owner as it appears upon
the front of this Certificate of Obligation
in every particular, without alteration or
or enlargement or any change whatsoever.
—234—
*FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE CERTIFICATES UPON INITIAL DELIVERY THEREOF
OFFICE OF COMPTROLLER
REGISTER NO.
STATE OF TEXAS
I hereby certify that this Bond has been examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller
of Public Accounts of the State of Texas.
WITNESS MY HAND and seal of office at Austin, Texas this
Comptroller of Public Accounts of
(SEAL) the State of Texas
NOTE TO PRINTER:
*¶ not to be on certificate
-235-
Exhibit B
to
Ordinance
DESCRIPTION OF ANNUAL FINANCIAL INFORMATION
The following information is referred to in Section 20 of this Ordinance.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the City to be provided
annually in accordance with such Section are as specified (and included in the Appendix or under
the headings of the Official Statement referred to) below:
1. Appendix A, under the headings: "Debt Payable from Taxes ", "General Revenues ",
"General Expenses ", "Ad Valorem Taxes ", "Five Year Operating Statement for Solid
Waste ", "Municipal Hotel Occupancy Taxes ", and "The Tax Increment Financing Act";
and
2. Appendix C, "Combined Financial Statements of the City of Corpus Christi, Texas for the
Fiscal Year ended July 31, 2007.
Accounting Principles
The accounting principles referred to in such Section are the accounting principles
described in the notes to the financial statements referred to in paragraph 2 above.
-236--
THE STATE OF TEXAS
COUNTIES OF NUECES AND SAN PATRICIO
CITY OF CORPUS CHRISTI
I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify
that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City
Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 9th
day of September, 2008, authorizing the issuance of $12,000,000 Combination Tax and Solid
Waste Revenue Certificates of Obligation, Series 2008, which ordinance is duly of record in the
minutes of said City Council, and said meeting was open to the public, and public notice of the
time, place and purpose of said meeting was given, all as required by Texas Government Code,
Chapter 551.
EXECUTED UNDER MY HAND AND SEAL of said City, this the 9th day of
September, 2008.
(SEAL)
City Secretary, City of Corpus Christi, Texas
-237-
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PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER , 2008
In the opinion of McCall, Parkhurst & Horton L.L.P., Bond Counsel, interest on the Certificates will be excludable
from gross income for federal income tax purposes under statutes, regulations, published rulings and court
decisions existing on the dale thereof except as to matters described under "TAX MATTERS" herein, including the
alternative minimum tax on corporations.
NEW ISSUE - BOOK - ENTRY -ONLY
512,000,000
City of Corpus Christy Texas
Combination Tax and Solid Waste Revenue
Certificates of Obligation, Series 2008
Moody's: "Applied For"
S&P: "Applied For"
Fitch: "Applied For"
(See "BOND INSURANCE"
and "RATINGS" herein)
Dated: September 1, 2008 Due: March 1, as shown on following page
The City of Corpus Christi, Texas Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008 (the
"Certificates ") will be issued by the City of Corpus Christi, Texas (the "City" or the "Issuer "). The Certificates are being issued
pursuant to the Constitution and general laws of the State of Texas, particularly the Certificate of Obligation Act of 1971, as
amended, Subchapter C, Chapter 271, Texas Local Government Code, and an ordinance (the "Ordinance ") adopted by the City
Council of the City (the "Council "). The Certificates are being issued to provide funds: (I) to make improvements to the City's
Solid Waste System, including landfill site development and drainage improvements and (2) to pay the costs of issuance of the
Certificates.
The Certificates are general obligations of the City and ad valorem taxes sufficient to provide for the payment of the interest on
and principal of the Certificates, as such interest and principal become due, have been levied and ordered to be levied against all
taxable property in the City, and have been pledged for such payment within the limits prescribed by law, and the Certificates are
additionally secured by and payable from a lien on and pledge of the Surplus Net Revenues derived from the operation of the
City's Solid Waste System after payment of all operation and maintenance expenses thereof, and other obligations now or
hereafter payable therefrom. (See "THE CERTIFICATES - Security for the Certificates" and "EFFECT OF THE TAX RATE
LIMITATION" herein.)
Interest on the Certificates will accrue from the dated date of the Certificates and will be payable on March I, 2009, and on each
September I and March 1 thereafter until maturity or prior redemption. The City intends to utilize the Book - Entry-Only System
of The Depository Trust Company ( "DTC "), but reserves the right on its behalf or on behalf of DTC to discontinue such system.
Principal of the Certificates will be payable by the paying agent/registrar (the "Paying Agent/Registrar"), initially The Bank of
New York Mellon Trust Company, N.A., Dallas, Texas. The defmitive Certificates will be registered in the name of Cede & Co.,
as nominee of DTC. Such Book -Entry-Only System will affect the method and timing of payment and the method of transfer
relating to the Certificates. DTC will be responsible for distributing the principal and interest payments to the participating
members of DTC and the participating members will be responsible for distributing the payment to the owners of beneficial
interest in the Certificates. See "BOOK -ENTRY -ONLY SYSTEM" herein. So long as the Certificates are in Book -Entry-Only
form, DTC is the securities depository therefor, Cede & Co., as nominee for DTC, will be the registered owner of the Certificates
and references herein to registered owners shall mean Cede & Co. and not the beneficial owners of the Certificates.
The City has made application to municipal bond insurance companies to have the payment of the principal of and interest on the
Certificates insured by a municipal bond insurance policy. The City shall notify potential purchasers should the City obtain a
commitment from a bond insurance company conceming this matter. The Final Official Statement shall disclose, to the extent
necessary, any relevant information relating to this municipal bond insurance policy.
The Certificates are subject to optional redemption prior to stated maturity. See "THE CERTIFICATES - Optional Redemption
herein.
Conditions To Delivery ... The Certificates are offered for delivery, when issued, to the initial purchasers thereof (the
"Underwriters"), subject to the opinions of the Attorney General of the State of Texas and McCall, Parkhurst & Horton L.L.P.,
Bond Counsel for the City (see "LEGAL MATTERS" and "TAX MATTERS "). Certain legal matters will be passed upon for
the City by the City Attorney and for the Underwriters by Fulbright & ]aworski L.L.P., San Antonio, Texas. It is anticipated that
the definitive Certificates will be tendered for delivery through the services of DTC on or about October 2, 2008.
MORGAN KEEGAN & CO, INC. FROST NATIONAL BANK
Preliminary, subject to change.
80250741 5
—238—
$12,000,000'
CITY OF CORPUS CHRISTI, TEXAS
COMBINATION TAX AND SOLID WASTE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2008
STATED MATURITY SCHEDULE
(Due Mardi 1)
CUSIP No. Prefix 220112
Principal Amount Stated Maturity Rate% Yield % CUSIP No. Sufxitl
2010 $190000
2011 200,000
2012 210,000
2013 220,000
2014 230,000
2015 245,000
2016 255,000
2017 270,000
2018 280,000
2019 295,000
2020 310,000
2021 330,000
2022 345,000
2023 360,000
2024 380,000
2025 400,000
2026 420,000
2027 440,000
2028 465,000
2029 485,000
2030 510,000
2031 540,000
2032 565,000
2033 595,000
2034 625,000
2035 - 655,000
2036 690,000
2037 725,000
2038 765,000
(Accrued Interest From September 1, 2008 To Be Added)
"CUSIP numbers have been assigned to the Certificates by Standard & Poor's CUSIP Service Bureau, a Division of The McGraw Hill
Companies, Inc., and are included solely for the convenience of owners of the Certificates. Neither the City, the Financial Advisor, nor the
Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth herein.
Preliminary, subject to change.
80250741.5
-239-
USE OF INFORMATION IN OFFICIAL STATEMENT
For purposes of compliance with Rule 15c2 -12 of the United States Securities and Exchange
Commission, as amended, and in effect on the date of this Preliminary Official Statement, this document
constitutes a Preliminary Official Statement of the City with respect to the Certificates that has been
deemed "final" by the City as of its date except for the omission of no more than the information
permitted by Rule 15c2 -12.
This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an
offer to sell or the solicitation of an offer to buy in any jurisdiction to any person to whom it is unlawful
to make such offer, solicitation or sale.
No dealer, broker, salesman or other person has been authorized to give any information, or to make any
representations other than those contained in this Official Statement, and, if given or made, such other
information or representations must not be relied upon as having been authorized by the City, the
Financial Advisor, or the Underwriters.
This Official Statement is not to be used in connection with an offer to sell or the solicitation of an offer
to buy in any state in which such offer or solicitation is not authorized or in which the person making
such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such
offer or solicitation. Any information and expressions of opinion herein contained are subject to change
without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall,
under any circumstances, create any implication that there has been no change in the affairs of the City or
other matters described herein since the date hereof.
THE UNDERWRITERS HAVE PROVIDED THE FOLLOWING SENTENCE FOR INCLUSION IN
THIS OFFICIAL STATEMENT. THE UNDERWRITERS HAVE REVIEWED THE INFORMATION
IN THIS OFFICIAL STATEMENT IN ACCORDANCE WITH THEIR RESPONSIBILITIES TO
INVESTORS UNDER THE FEDERAL SECURITIES LAWS AS APPLIED TO THE FACTS AND
CIRCUMSTANCES OF THIS TRANSACTION, BUT THE UNDERWRITERS DO NOT
GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.
THE CERTIFICATES ARE EXEMPT FROM REGISTRATION WITH THE SEC AND
CONSEQUENTLY HAVE NOT BEEN REGISTERED THEREWITH. THE REGISTRATION,
QUALIFICATION, OR EXEMPTION OF THE CERTIFICATES IN ACCORDANCE WITH
APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTIONS 114 WHICH THESE
CERTIFICATES HAVE BEEN REGISTERED, QUALIFIED, OR EXEMPTED SHOULD NOT BE
REGARDED AS A RECOMMENDATION THEREOF.
IN CONNECTION WITH THE OFFERING OF THE CERTIFICATES, THE UNDERWRITERS MAY
OVER ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET
PRICE OF THE CERTIFICATES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE
PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE
DISCONTINUED AT ANY TIME.
Neither the City, the Financial Advisor, nor the Underwriters make any representation as to the accuracy,
completeness, or adequacy of the information supplied by The Depository Trust Company for use in this
Official Statement. CUSIP numbers have been assigned to this issue by the CUSIP Service Bureau and
are included solely for the convenience of the owners of the Certificates. Neither the City, the Financial
Advisor, nor the Underwriters shall be responsible for the selection or the correctness of CUSIP numbers.
80250741.5
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TABLE OF CONTENTS
STATED MATURITY SCHEDULE
USE OF INFORMATION IN OFFICIAL STATEMENT
CITY ADMINISTRATION
SUMMARY STATEMENT vi
SELECTED FINANCIAL AND TAX DATA viii
INTRODUCTION 1
THE CERTIFICATES 1
SOURCES AND USES OF FUNDS 5
REMEDIES 6
BOND INSURANCE 6
REGISTRATION 6
BOOK - ENTRY -ONLY SYSTEM 7
AUTHORIZED BUT UNISSUED AD VALOREM TAX SUPPORTED BONDS 10
EFFECT OF THE TAX RATE LIMITATION 10
DEBT INFORMATION 11
INVESTMENT POLICY 11
PAYROLL STATISTICS 14
ANNEXATION PROGRAM 15
LITIGATION 16
GASB 34 STATEMENT 16
LEGAL MATTERS 16
TAX MATTERS 17
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS 20
RATINGS 20
CONTINUING DISCLOSURE OF INFORMATION 21
REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE 23
UNDERWRITING 23
FINANCIAL ADVISOR 23
INDEPENDENT ACCOUNTANTS 24
MISCELLANEOUS 24
FORWARD LOOKING STATEMENTS 24
AUTHORIZATION OF THE OFFICIAL STATEMENT 25
FINANCIAL INFORMATION A -1
CERTAIN INFORMATION RELATING TO THE CITY OF CORPUS CHRISTI B -1
FINANCIAL STATEMENTS OF THE CITY OF CORPUS CHRISTI, TEXAS C -1
OPINION OF BOND COUNSEL D -1
80250741.5
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City of Corpus Christi, Texas
1201 Leopard
Corpus Christi, Texas 78401
(361) 880 -3105
CITY ADMINISTRATION
ELECTED OFFICIALS
Mayor
Henry Garrett
Council Members
Bill Kelly, District 1
John Marez, District 2
Priscilla Leal, District 3
Michael McCutchon, District 4
Larry Elizondo, Sr., District 5
Nelda Martinez, At Large
Melody Cooper, At Large
Mike Hummel', At Large
CERTAIN APPOINTED OFFICIALS
Name Position
George K. Noe(»
Angel Escobar
Oscar Martinez
Margie C. Rose
Robert J. Nix, Jr.
Cindy O'Brien
Mary Kay Fischer
Armando Chapa
City Manager
Interim Assistant City Manager
Assistant City Manager
Assistant City Manager
Assistant City Manager
Director of Financial Services
City Attorney
City Secretary
(I) Mr. Noe will step down on September 1, 2008. Angel Escobar will serve as Interim City Manager until a replacement is hired.
The City Council is working with a consultant on a nationwide search for its next city manager and expects to hire a new city
manager within the next 90 days.
CONSULTANTS AND ADVISORS
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
The Bank of New York Mellon Trust Company, N.A., Dallas,
Texas
Bond Counsel
Paying Agent
Independent Certified
Public Accountants
Financial Advisors
Collier, Johnson & Woods, P.C., Corpus Christi, Texas
M. E. Allison & Co., Inc., San Antonio, Texas
For additional information regarding the City, please contact:
Ms. Cindy O'Brien
City of Corpus Christi, Texas
1201 Leopard
Corpus Christi, Texas 78401
(361) 880 -3604
Fax (361) 880 -3601
c indvo(a,cctexas. com
80250741.5
Mr. Mark A. Seal
M.E. Allison & Co., Inc.
950 East Basse Road, Second Floor
or San Antonio, Texas 78209
(210) 9304000
Fax (210) 930 -4001
m s e a l (dmeal l i son.com
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SUMMARY STATEMENT
The Summary Statement is subject to the more complete information and to the definitions contained or
incorporated in this Official Statement. The offering of the Certificates to potential investors is made only by means
of this entire Official Statement. No person is authorized to detach this Summary Statement from this Official
Statement or to otherwise use it without the entire Official Statement.
The City The City of Corpus Christi, Texas (the "City" or the "Issuer ").
Issue and Date
Use of Proceeds
Amounts and Maturities
Interest Payment Dates
Authority for Issuance
Optional Redemption
Paying Agent/Registrar
Security for Payment
• Preliminary, subject to change.
80250741.5
$12,000,000. City of Corpus Christi, Texas Combination Tax and Solid
Waste Revenue Certificates of Obligation, Series 2008 (the "Certificates ").
The Certificates are dated September I, 2008.
The proceeds of the Certificates will be utilized to (i) make improvements
to the City's Solid Waste System, including landfill site development and
related drainage improvements, and (ii) pay the costs of issuing the
Certificates.
The Certificates are stated to mature on March 1 in varying amounts, as
shown on the inside cover page of this Official Statement.
March 1, 2009 and on each September 1 and March 1 thereafter until
maturity or prior redemption.
The Certificates are being issued pursuant to the general laws of the State
of Texas, the Certificate of' Obligation Act of 1971, as amended,
Subchapter C, Chapter 271, Texas Local Govemment Code, and an
ordinance passed by the City Council of the City. (See "THE
CERTIFICATES - Authority for Issuance" herein.)
The Certificates stated to mature on and after March 1, 2019, are subject to
redemption, at the option of the City, in whole or in part, on March 1, 2018
and any date thereafter, at par plus accrued interest to the date fixed for
redemption. The years of maturity of the Certificates called for
redemption shall be selected by the City. If less than all of the Certificates
are redeemed within a stated maturity at any time, the Certificates to be
redeemed shall be selected by the Paying Agent/Registrar for the
Certificates, at random and by lot within any stated maturity.
The initial paying agent/registrar for the Certificates is The Bank of New
York Mellon Trust Company, N.A., Dallas, Texas. The City intends to use
the Book -Entry-Only System of the Depository Trust Company.
Principal of and interest on the Certificates will be payable from and
secured by the receipts from an annual ad valorem tax levied on all taxable
property within the City, within the limits prescribed by law. The
Certificates are additionally secured by and payable from a pledge of the
Surplus Net Revenues derived from the operation of the City's Solid Waste
System. (See "THE CERTIFICATES - Security for the Certificates" and
"EFFECT OF THE TAX RATE LIMITATION" herein.)
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Bond Insurance
Ratings
Future Debt Issues
Payment Record
The City has made application to municipal bond insurance companies to
have the payment of the principal of and interest on the Certificates insured
by a municipal bond insurance policy. The City shall notify potential
purchasers should the City obtain a commitment from a bond insurance
company concerning this matter. The Final Official Statement shall
disclose, to the extent necessary, any relevant information relating to this
municipal bond insurance policy.
Rating applications have been submitted to Moody's investors Service,
Inc. ( "Moody's "), Standard & Poor's Rating Services, a Division of The
McGraw -Hill Companies, Inc. ( "S &P "), and Fitch Ratings ( "Fitch ") to
obtain a rating on the Certificates. The results of this process will be
communicated by the City when available. See "RATINGS" and "BOND
INSURANCE" herein. The City's non - credit enhanced general obligation
debt is rated "A2 ", "A + ", and "AA-" by Moody's, S &P, and Fitch,
respectively. An explanation of the significance of such ratings may be
obtained from the company furnishing the rating. The ratings reflect only
the respective views of such organizations and the City makes no
representation as to the appropriateness of the ratings. There is no
assurance that such ratings will continue for any given period of time or
that they will not be revised downward or withdrawn entirely if in the
judgment of these companies, circumstances so warrant. Any such
downward revision or withdrawal of such ratings, or either of them, may
have an adverse effect on the market price of the Certificates.
The City does not anticipate the issuance of any additional general
obligation indebtedness for the next twelve months, although the City may
issue general obligation refunding bonds.
The City has not defaulted on the payment of its bonded indebtedness in
over 70 years.
Delivery When issued, anticipated on or about October 2, 2008.
80250741.5 - Vil -
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SELECTED FINANCIAL AND TAX DATA
2008 Net Taxable Assessed Valuation (As of August 1, 2008)
(100% of Market Value) $13,813,355,014
Total Tax Supported Debt Outstanding(I) 267,950,000
Less: Self Supporting Debt $106,884,957
Applicable Interest and Sinking Fund 10.063.710 116.948.667
NET DEBT 151.001.333
Ratio Net Debt to 2008 Net Taxable Assessed Valuation 1.94%
Net Debt Per Capita (2008 Population Estimate — 295,594) $511
Average Current Tax Collections Past Five Years 96.18%
Average Total Tax Collections Past Five Years 98.88%
t0Adjusted to include the Certificates. Preliminary, subject to change. See Page A -1 for more information.
[The remainder of this page intentionally left blank.)
80250741.5 - vili -
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$12,000,000`
CITY OF CORPUS CHRISTI, TEXAS
COMBINATION TAX AND SOLID WASTE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2008
INTRODUCTION
This Official Statement of the City of Corpus Christi, Texas (the "City ", the "Issuer ", or "Corpus
Christi ") is provided to furnish information in connection with the sale of the City of Corpus Christi,
Texas Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008, in the
aggregate principal amount of $12,000,000* (the "Certificates "). Corpus Christi is a political subdivision
of the State of Texas, and a municipal corporation organized and existing under the laws of the State of
Texas, including its duly adopted Home Rule Charter (the "Charter "). The Certificates will be sold in
accordance with the provisions of an ordinance (the "Ordinance ") adopted by the City Council of the City
on September 9, 2008.
Capitalized terms used in this Official Statement have the same meanings assigned to such term in the
Ordinance to be adopted on the date of sale of the Certificates, except as otherwise indicated herein. This
Official Statement contains a description of the Certificates, and certain other information about the City
and its finances. All descriptions of documents contained herein are only summaries and are qualified in
their entirety by reference to each such document. Copies of such documents may be obtained from the
City at 1201 Leopard, Corpus Christi, Texas 78401 and, during the offering period, from the City's
Financial Advisor, Mark Seal, M.E. Allison & Co., Inc. 950 East Basse Road, Second Floor, San
Antonio, Texas 78209, Telephone (210) 930 -4000, or from Cindy O'Brien, Director of Financial
Services, City of Corpus Christi, 1201 Leopard, Corpus Christi, Texas 78401, telephone (361) 880 -3610,
by electronic mail or upon payment of reasonable copying, mailing, and handling charges.
This Official Statement speaks only as to its date, and the information contained herein is subject to
change. Copies of the Final Official Statement pertaining to the Certificates will be deposited with the
Municipal Securities Rulemaking Board, 1900 Duke Street, Suite 600, Alexandria, Virginia 22314. See
'CONTINUING DISCLOSURE OF INFORMATION" for a description of the City's undertaking to
provide certain information on a continuing basis.
THE CERTIFICATES
Purposes of the Certificates
The Certificates are being issued to provide funds: (I) to make improvements to the City's Solid Waste
System, including landfill site development and related drainage improvements and (2) to pay the costs of
issuance of the Certificates.
The Certificates are issued pursuant to the Charter and the general laws of the State of Texas, particularly
pursuant to the Ordinance adopted by the City Council and the Certificate of Obligation Act of 1971, as
amended, Subchapter C, Chapter 271, Texas Local Government Code (the "Certificate of Obligation
Act "). The Certificates are general obligations of the City and ad valorem taxes sufficient to provide for
the payment of the interest on and principal of the Certificates, as such interest and principal become due,
have been levied and ordered to be levied against all taxable property in the City, and have been pledged
for such payment, within the limits prescribed by law and that the Certificates are additionally secured by
and payable from a lien on and pledge of the Surplus Net Revenues of the City's Solid Waste System.
(See "EFFECT OF THE TAX RATE LIMITATION" herein.)
Preliminary, subject to change.
80250741.5
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General
The Certificates will be dated September 1, 2008 and will be issued in principal denominations of $5,000
or any integral multiple thereof.
The Certificates bear interest from such date at the stated interest rates indicated on the inside cover page
hereof. Interest on the Certificates will be calculated on the basis of a 360 -day year of twelve 30 -day
months, and will be payable on March 1, 2009 and each September 1 and March 1 thereafter, until the
earlier of maturity or redemption. Interest on the Certificates will be calculated on the basis of a 360 -day
year consisting of twelve 30 -day months.
The City intends to utilize the Book -Entry-Only System of The Depository Trust Company ( "DTC "), but
reserves the right on its behalf or behalf of DTC to discontinue such system. Principal of the Certificates
will be payable by the paying agent/registrar, initially The Bank of New York Mellon Trust Company,
N.A. (the "Paying Agent/Registrar "), through its offices located in Dallas, Texas (the "Designated Trust
Office "), to Cede & Co., as nominee of DTC. Such Book -Entry-Only System will affect the method and
timing of payment and the method of transfer. DTC will be responsible for distributing the principal and
interest payments to the participating members of DTC and the participating members will be responsible
for distributing the payment of the owners of beneficial interest in the Certificates. See "BOOK- ENTRY-
ONLY SYSTEM" herein. So long as the Certificates are in Book -Entry-Only form, and DTC is the
securities depository therefore, Cede & Co., as nominee of DTC, will be the registered owner of the
Certificates and references herein to the Certificateholders or registered owners shall mean Cede & Co.
and not the beneficial owners of the Certificates. Interest on the Certificates will be payable by check,
dated as of the interest payment date and mailed by the Paying Agent/Registrar to registered owners as
shown on the records of the Paying Agent/Registrar on the Record Date (see "REGISTRATION - Record
Date for Interest Payment" herein), or, by such other customary banking arrangements, acceptable to the
Paying Agent/Registrar, requested by, and at the risk and expense of, a registered owner. If the date for
the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, legal holiday or
a day on which banking institutions in the city where the Paying Agent/Registrar is located are authorized
by law or executive order to close, then the date for such payment shall be the next succeeding day which
is not a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized to close;
and payment on such date shall have the same force and effect as if made on the original date payment
was due.
Optional Redemption
The Certificates maturing on and after March I, 2019 are subject to redemption, at the option of the City,
at the par value thereof plus accrued interest, in whole or in part, in the principal amount of $5,000 or any
integral multiple thereof, on March 1, 2018, and on any date thereafter. The years of maturity of the
Certificates called for redemption shall be selected by the City. If less than all of the Certificates are
redeemed within a stated maturity at any time, the Certificates to be redeemed shall be selected by the
Paying Agent/Registrar at random and by lot or other customary method in multiples of $5,000 within
any stated maturity.
Notice of Redemption
At least 30 days prior to the date fixed for any such redemption, (a) a written notice of such redemption
shall be given to the registered owner of each Certificate or a portion thereof being called for redemption
by depositing such notice in the United States mail, first -class postage prepaid, addressed to each such
registered owner at his address shown on the registration books maintained by the Paying Agent/Registrar
and (b) notice of such redemption shall be published one (1) time in a financial journal or publication of
general circulation in the United States of America or the State of Texas carrying as a regular feature
80250741.5
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notices of municipal bonds called for redemption, provided, however, that the failure to send, mail, or
receive such notice described in (a) above, or any defect therein or in the sending or mailing
thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any
Certificate, and the Ordinance provides that the publication of notice as described in (b) above
shall be the only notice actually required in connection with or as a prerequisite to the redemption
of any Certificates.
All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the
Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the
principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state the Certificates, or the
portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption
date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed,
shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption
price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the designated
corporate trust office of the Paying Agent/Registrar only upon presentation and surrender thereof by the
registered owner. If a Certificate is subject by its terms to redemption and has been called for redemption
and notice of redemption thereof has been duly given or waived as provided in the Ordinance such
Certificate (or the principal amount thereof to be redeemed) so called for redemption shall become due
and payable, and on the redemption date designated in such notice, interest on said Certificate (or the
principal amount thereof to be redeemed) called for redemption shall cease to accrue and such Certificate
shall not be deemed to be Outstanding.
The Paying Agent/Registrar and the City, so long as a Book -Entry-Only System is used for the
Certificates, will mail any notice of redemption, notice of proposed amendment to the Ordinance or other
notices with respect to the Certificates only to DTC. Any failure by DTC to advise any DTC participant,
or of any DTC participant or indirect participant to notify the beneficial owner, shall not affect the
validity of the redemption of the Certificates called for redemption or any other action premised on any
such notice. Redemption of portions of the Certificates held by the City will reduce the outstanding
principal amount of such Certificates held by DTC. In such event, DTC may implement, through its
Book -Entry-Only System, a redemption of such Certificates held for the account of DTC participants in
accordance with its rules or other agreements with DTC participants and then DTC participants and
indirect participants may implement a redemption of such Certificates from the beneficial owners. Any
such selection of Certificates to be redeemed will not be governed by the Ordinance and will not be
conducted by the City or the Paying Agent/Registrar. Neither the City nor the Paying Agent/Registrar
will have any responsibility to DTC participants, indirect participants or the persons for whom DTC
participants act as nominees, with respect to the payments on the Certificates or the providing of notice to
DTC participants, indirect participants, or beneficial owners of the selection of portions of the Certificates
for redemption. See "BOOK -ENTRY -ONLY SYSTEM" herein.
Defeasance
The Ordinance provides for the defeasance of the Certificates when payment of the principal of and
premium, if any, on the Certificates, plus interest thereon to the due date thereof (whether such due date
be by reason of maturity, redemption, or otherwise) is provided by irrevocably depositing with a paying
agent in trust (1) money in an amount sufficient to make such payment and/or (2) Defeasance Securities
certified by an independent public accounting firm of national reputation to mature as to principal and
interest in such amounts and at such times to insure the availability, without reinvestment, of sufficient
money to make such payment, and all necessary and proper fees, compensation and expenses of the
paying agent for the respective series of Certificates. The Ordinance provides that " Defeasance
Securities" means (1) direct, noncallable obligations of the United States of America, including
obligations that are unconditionally guaranteed by the United States of America, (2) noncallable
obligations of an agency or instrumentality of the United States of America, including obligations that are
80250741.5 - 3 -
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unconditionally guaranteed or insured by the agency or instrumentality and that are rated as to investment
quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and
(3) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision
of a state that have been refunded and that are rated as to investment quality by a nationally recognized
investment rating firm not less than AAA or its equivalent.
Upon such deposit as described above, such Certificates shall no longer be regarded to be outstanding or
unpaid; provided, however, the City has reserved the option, to be exercised at the time of the defeasance
of the Certificates, to call for redemption at an earlier date those Certificates which have been defeased to
their maturity date, if the City in the proceedings providing for the firm banking and financial
arrangements, expressly (i) reserves the right to call the Certificates for redemption, (ii) gives notice of
the reservation of that right to the owners of the Certificates immediately following the making of the
firm banking and financial arrangements, and (iii) directs that notice of the reservation be included in any
redemption notices that it authorizes.
Paying Agent/Registrar
The principal of the Certificates will be paid to the registered owner at maturity or prior redemption upon
presentation to the Paying Agent/Registrar, which initially is The Bank of New York Mellon Trust
Company, N.A., at its Designated Trust Office. Interest on the Certificates will be paid to registered
owners shown on the records of the Paying Agent/Registrar on the Record Date (see "REGISTRATION -
Record Date for Interest Payment" herein), and such interest will be paid by check sent by mail to the
address of such registered owner appearing on the registration books of the Paying Agent/Registrar (the
"Security Register ") or by such other customary banking arrangements acceptable to the Paying
Agent/Registrar requested by, and at the risk and expense of, the registered owner. At the time of
delivery of the Certificates, the Dallas, Texas office of the Paying Agent/Registrar is the Designated Trust
Office.
Successor Paying Agent/Registrar
The City reserves the right to replace the Paying Agent/Registrar. If the Paying Agent/Registrar is
replaced by the City, the new Paying Agent/Registrar shall accept the previous Paying Agent/Registrar's
records and act in the same capacity as the previous Paying Agent/Registrar. Any successor Paying
Agent/Registrar selected by the City shall be a bank, a trust company, financial institution, or other entity
duly qualified and legally authorized to serve and perform the duties of Paying Agent/Registrar for the
Certificates. Upon a change in the Paying Agent/Registrar for the Certificates, the City shall promptly
cause a written notice thereof to be sent to each registered owner of the Certificates by United States mail,
first -class postage prepaid, which notice shall give the address of the new Paying Agent/Registrar.
Transfers and Exchanges
So long as any Certificates remain outstanding, the Paying Agent/Registrar shall keep the registration
books at the Designated Trust Office in which, subject to such reasonable regulations as it may prescribe,
the Paying Agent/Registrar shall provide for the registration and transfer of the Certificates in accordance
with the terms of the Ordinance.
Each Certificate shall be transferable only upon the presentation and surrender thereof at the Designated
Trust Office of the Paying Agent/Registrar, duly endorsed for transfer, or accompanied by an assignment
duly executed by the owner or his authorized representative in a form satisfactory to the Paying
Agent/Registrar. Upon due presentation and surrender of a Certificate for transfer, the Paying
Agent/Registrar is required to authenticate and deliver in exchange therefor, under such reasonable
regulations as the Paying Agent/Registrar may prescribe, a new Certificate or Certificates, registered in
80250741.5
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the name of the transferee or transferees, in authorized denominations and of the same maturity, in the
principal amount of $5,000 or any integral multiple thereof, and bearing interest at the same rate as the
Certificate or Certificates so presented and surrendered.
All Certificates shall be exchangeable upon the presentation and surrender thereof at the Designated Trust
Office of the Paying Agent/Registrar for a Certificate or Certificates of the same maturity and interest rate
and in any authorized denomination, in such aggregate principal amount as discussed above equal to the
unpaid principal amount of the Certificate delivered in accordance with the Ordinance and shall be
entitled to the benefits and security of the Ordinance to the same extent as the Certificate or Certificates in
lieu of which such Certificate is delivered.
The Paying Agent/Registrar may require the owner of any Certificate to pay a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with the transfer or exchange of
such Certificate. Any reasonable standard or customary fee or charge of the Paying Agent/Registrar for a
conversion or exchange shall be paid by the one requesting such conversion or exchange, except that the
City shall pay such fee or charge in the case of the conversion or exchange of an assigned and transferred
Certificate.
Security for the Certificates
The Certificates are issued pursuant to the Charter and the general laws of the State of Texas, particularly
pursuant to the Ordinance adopted by the City Council and the Certificate of Obligation Act. The
Certificates are general obligations of the City and ad valorem taxes sufficient to provide for the payment
of the interest on and principal of the Certificates, as such interest and principal become due, have been
levied and ordered to be levied against all taxable property in the City, and have been pledged for such
payment, within the limit prescribed by law. In addition, the Certificates are also secured by and payable
from a lien on and pledge of the Surplus Net Revenues of the City's Solid Waste System. The City has
outstanding four issues of certificates of obligation (Series 2000, Series 2004, Series 2005, and Series
2006) payable from the same pledge as the Certificates, that are currently outstanding in the aggregate
principal amount of $40,555,000. Proceeds from the sale of the Certificates will be used for constructing
improvements to the City's landfill, including site development and drainage improvements, and the
payment for professional services.
See "EFFECT OF THE TAX RATE LIMITATION" and "Appendix A - Ad Valorem Taxes" for further
discussion and information relating to ad valorem tax pledges in support of the Certificates. It is
anticipated that the Surplus Net Revenues securing the payment of the Certificates will be sufficient to
pay the debt service requirements on the Certificates.
SOURCES AND USES OF FUNDS
The proceeds from the sale of the Certificates will be applied as follows:
Sources of Funds
Principal Amount of Certificates $
Net Reoffering Premium/Discount
Accrued Interest
Total Sources of Funds $
Uses of Funds
Deposit to the Construction Fund $
Issuance Expenses, Bond Insurance Premium, and Contingency Amount
Underwriters' Discount
Accrued Interest
Total Uses of Funds $
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REMEDIES
If the City defaults in the payment of principal, interest, or redemption price on the Certificates when due,
or the City defaults in the observation or performance of any other covenants, conditions, or obligations
set forth in the Ordinance, the registered owners may seek a writ of mandamus to compel the City or City
officials to carry out the legally imposed duties with respect to the Certificates if there is no other
available remedy at law to compel performance of the Certificates or the Ordinance, and the City's
obligations are not uncertain or disputed. The issuance of a writ of mandamus is controlled by equitable
principles, so rests with the discretion of the court, but may not be arbitrarily refused. There is no
acceleration of maturity of the Certificates in the event of default and, consequently, the remedy of
mandamus may have to be relied upon from year to year. The Ordinance does not provide for the
appointment of a trustee to represent the interest of the holders of the Certificates upon any failure of the
City to perform in accordance with the terms of the Ordinance, or upon any other condition and
accordingly all legal actions to enforce such remedies would have to be undertaken at the initiative of, and
be financed by, the registered owners. On June 30, 2006, the Texas Supreme Court ruled in Tooke v. City
of Mexia, 197 S.W.3rd 325 (Tex. 2006) that a waiver of sovereign immunity in a contractual dispute must
be provided for by statute in "clear and unambiguous" language. Because it is unclear whether the Texas
legislature has effectively waived the City's sovereign immunity from a suit for money damages, holders
of the Certificates may not be able to bring such a suit against the City for breach of the Certificates or
covenants contained in the Ordinances. Even if a judgment against the City could be obtained, it could
not be enforced by direct levy and execution against the City's property.
The City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code
( "Chapter 9 "). Although Chapter 9 provides for the recognition of a security interest represented by a
specifically pledged source of revenues, such provision is subject to judicial construction. Chapter 9 also
includes an automatic stay provision that would prohibit, without Bankruptcy Court approval, the
prosecution of any other legal action by creditors or holders of the Certificates of an entity which has
sought protection under Chapter 9. Therefore, should the City avail itself of Chapter 9 protection from
creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could
require that the action be heard in Bankruptcy Court instead of other federal or state court); and the
Bankruptcy Code provides for broad discretionary powers of a Bankruptcy Court in administering any
proceeding brought before it. The opinion of Bond Counsel will note that all opinions relative to the
enforceability of the Certificates are qualified with respect to the customary rights of debtors relative to
their creditors.
BOND INSURANCE
The City has made application to municipal bond insurance companies to have the payment of the
principal of and interest on the Certificates insured by a municipal bond insurance policy. The City shall
notify potential purchasers should the City obtain a commitment from a bond insurance company
concerning this matter. The Final Official Statement shall disclose, to the extent necessary, any relevant
information relating to this municipal bond insurance policy..
REGISTRATION
Future Registration
In the event the Book -Entry-Only System should be discontinued, the Certificates may be transferred,
exchanged and assigned on the registration books of the Paying Agent/Registrar, only upon presentation
and surrender thereof the Paying Agent/Registrar and such transfer or exchange of the Certificates shall
be without expense or service charge to the owner, except for any tax or other governmental charges
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required to be paid with respect to such registration and transfer. A Certificate may be assigned by the
execution of an assignment form on the Certificate or by other instrument of transfer and assignment
acceptable to the Paying Agent/Registrar. A new Certificate or Certificates will be delivered by the
Paying Agent/Registrar in lieu of the Certificates being transferred or exchanged at the corporate trust
office of the Paying Agent/Registrar, or sent by United States mail, first -class postage prepaid, to the new
registered owner or his assignee. To the extent possible, new Certificates issued in an exchange or
transfer of Certificates will be delivered to the contracting party or assignee of the owner in not more than
three (3) business days after the receipt of the Certificates to be canceled in the exchange or transfer and
the written instrument of transfer or request for exchange duly executed by the owner or his duly
authorized agent, in form satisfactory to the Paying Agent/Registrar. New Certificates registered and
delivered in an exchange or transfer shall be in denominations of $5,000 for any one maturity or any
integral multiple thereof and for a like aggregate principal amount of the Certificate or Certificates
surrendered for exchange or transfer.
See "BOOK- ENTRY -ONLY SYSTEM" herein for a description of the system to be utilized initially in
regard to ownership and transferability of the Certificates.
Record Date for Interest Payment
The record date ( "Record Date ") for interest payable to the registered owner of a Certificate on any
interest payment date is the fifteenth calendar day of the preceding month, as specified in the Ordinance.
In the event of a nonpayment of interest on a scheduled payment date, and for thirty days thereafter, a
new record date for such interest payment (a "Special Record Date ") will be established by the Paying
Agent/Registrar, if and when funds for the payment of such interest have been received from the City.
Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall
be fifteen days after the Special Record Date) shall be sent at least five business days prior to the Special
Record Date by United States mail, first -class postage prepaid, to the address of each holder appearing on
the Security Register at the close of business on the last business day next preceding the date of mailing
of such notice.
Limitation on Transfer of Certificates
Neither the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days before the day of the first mailing of a notice
of redemption of Certificates and ending at the close of business on the day of such mailing, or (2) to
transfer or exchange any Certificates so selected for redemption when such redemption is scheduled to
occur within 30 calendar days.
Replacement Certificates
The City has agreed to replace mutilated, destroyed, lost, or stolen Certificates upon surrender of the
mutilated Certificates to the Paying Agent/Registrar, or receipt of satisfactory evidence of such
destruction, loss, or theft, and receipt by the City and Paying Agent/Registrar of security or indemnity as
may be required by either of them to hold them harmless. The City may require payment of taxes,
govemmental charges, and other expenses in connection with any such replacement.
BOOK - ENTRY -ONLY SYSTEM
This section describes how ownership of the Certificates is to be transferred and how the principal of,
premium, if any, and interest on the Certificates are to be paid to and credited by The Depository Trust
Company ( "DTC "), New York, New York, while the Certificates are registered in its nominee name. The
information in this section concerning DTC and the Book Entry Only System has been provided by DTC
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for use in disclosure documents such as this Official Statement. The City believes the source of such
information to be reliable, but takes no responsibility for the accuracy or completeness thereof.
The City cannot and does not give any assurance that (1) DTC will distribute payments of debt service on
the Certificates, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will
distribute debt service payments paid to DTC or its nominee (as the registered owner of the Certificates),
or redemption or other notices, to the Beneficial Owners, or that they will do so on a timely basis, or (3)
DTC will serve and act in the manner described in this Official Statement. The current rules applicable to
DTC are on file with the Securities and Exchange Commission, and the current procedures of DTC to be
followed in dealing with DTC Participants are on file with DTC.
DTC will act as securities depository for the Certificates. The Certificates will be issued as fully
registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other
name as may be requested by an authorized representative of DTC. One fully registered security
certificate will be issued for each maturity of the Certificates, in the aggregate principal amount or
Maturity Value, as applicable, of each maturity of such issue, and will be deposited with DTC.
General
DTC, the world's largest securities depository, is a limited - purpose trust company organized under the
New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York
Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million
issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market
instruments from over 100 countries that DTC's participants ( "Direct Participants ") deposit with DTC.
DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities
transactions in deposited securities, through electronic computerized book -entry transfers and pledges
between Direct Participants' accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust
companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of
The Depository Trust & Clearing Corporation ( "DTCC "). DTCC is the holding company for DTC,
National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are
registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the
DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers,
banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship
with a Direct Participant, either directly or indirectly ( "Indirect Participants "). DTC has Standard &
Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities
and Exchange Commission. More information about DTC can be found at www.dtcc.com and
www.dtc.org.
To facilitate subsequent transfers, all Certificates deposited by Direct Participants with DTC are
registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be
requested by an authorized representative of DTC. The deposit of Certificates with DTC and their
registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial
ownership. DTC has no knowledge of the actual Beneficial Owners of the Certificates; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Certificates are credited, which
may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible
for keeping account of their holdings on behalf of their customers.
Purchases of Certificates under the DTC system must be made by or through Direct Participants, which
will receive a credit for the Certificates on DTC's records. The ownership interest of each actual
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purchaser of each Certificate ("Beneficial Owner ") is in turn to be recorded on the Direct and Indirect
Participants' records. Beneficial Owners will not receive written confirmation from DTC of their
purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of
the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Certificates are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Certificates, except in the event that use of the book -entry system for the
Certificates is discontinued.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time.
Redemption notices will be sent to DTC. If Tess than all of the Certificates within a maturity are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Certificates unless authorized by a Direct Participant in accordance with DTC's procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose
accounts Certificates are credited on the record date (identified in a listing attached to the Omnibus
Proxy).
Redemption proceeds, principal, and interest payments on the Certificates will be made to Cede & Co., or
such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to
credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information
from the City or the Paying Agent/Registrar, on payment date in accordance with their respective
holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by
standing instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in "street name ", and will be the responsibility of such Participant
and not of DTC, the Paying Agent/Registrar, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, principal, and
interest payments to Cede & Co. (or such other nominee as may be requested by an authorized
representative of DTC) is the responsibility of the City or the Paying Agent/Registrar, disbursement of
such payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Certificates at any time by
giving reasonable notice to the City or the Paying Agent/Registrar. Under such circumstances, in the
event that a successor depository is not obtained, security certificates are required to be printed and
delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or
a successor securities depository). In that event, security certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book -entry system has been obtained from
DTC, but the City takes no responsibility for the accuracy thereof.
Use of Certain Terms in Other Sections of this Official Statement
In reading this Official Statement it should be understood that while the Certificates are in the Book -
Entry-Only System, references in other sections of this Official Statement to registered owners should be
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read to include the person for which the Direct or Indirect Participant acquires an interest in the
Certificates, but (i) all rights of ownership must be exercised through DTC and the Book - Entry -Only
System, and (ii) except as described above, payment or notices that are to be given to registered owners
under the Ordinance will be given only to DTC.
AUTHORIZED BUT UNISSUED AD VALOREM TAX SUPPORTED BONDS
The City voters, at an election held on November 2, 2004, authorized an aggregate amount of
$95,000,000 to finance various permanent improvements throughout the City.
Date Authorized
Authorization Amount Previously Issued Amount Unissued
November 2, 2004 $95,000,000 $95,000,000 $0
The City plans to call a bond election for November 4, 2008 in the principal amount of $153,000,000.
EFFECT OF THE TAX RATE LIMITATION
As discussed more specifically elsewhere in this Official Statement, two amendments to the Charter affect
management of the City's financial affairs. In 1984, an election was held at which an amendment to the
Charter established a 68 cent per $100 tax rate for all purposes (the City would otherwise be permitted by
State law to have a tax rate of up to $2.50 per $100 of assessed valuation). In 1993, an election was held
at which the citizens of Corpus Christi voted to amend the Charter to provide for the tax rate to increase
up to the State limit for voter approved debt authorized after April 4, 1993. In 2001 the City issued
$30,800,000 of general obligation bonds to finance various projects that were approved by the citizens of
Corpus Christi at an election held on November 7, 2000 and are not subject to the 68 cent tax rate limit.
A portion of those bonds were refunded with proceeds of the City's General Improvement and Refunding
Bonds, Series 2005, and such Bonds attributable to such refunding are not subject to the 68 cent tax rate
limit. The general obligation bonds described under "AUTHORIZED BUT UNISSUED AD VALOREM
TAX SUPPORTED BONDS" are not subject to the 68 cent tax rate limit. The remaining outstanding tax
supported debt, and any currently outstanding certificates of obligation (including the Certificates) are
subject to the 68 cent tax rate limit, which is also applicable to the City's operation and maintenance
expenditures. The Certificates are subject to the 68 cent tax rate limit. See "THE CERTIFICATES -
Security for the Certificates" herein.
The City has adopted by election under the Texas Tax Code a $50,000 homestead exemption for disabled
taxpayers and for taxpayers over the age of 65. Further, on November 2, 2004, voters of the City, in
addition to approving the issuance of $95,000,000 in general obligation debt, secured by the ad valorem
taxes of the City, approved freezing the ad valorem taxes for citizens 65 or older, or disabled, and their
spouses on homesteads owned thereby. The City has not determined the effect the imposition of the tax
freeze may have on the ability of the City to maintain the current level of operations at the City or the
ability of the City to finance future capital improvements through the issuance of debt secured in whole or
in part by a pledge of ad valorem taxes. The bonds issued or to be issued under authority of the 2004
election are not subject to the 68 cent tax rate limit.
These provisions affect the City's budgeting and capital improvement program planning functions. In
part, as a response to the tax rate limit, the City has maintained its tax rate within a range of 59¢ to 64.4¢
over the last ten fiscal years. The current tax rate is 56.4¢. The ability to continue to issue the debt
necessary to add additional City improvements and to provide other current services within the tax rate
limit will depend in part on the growth in the City's ad valorem and sales tax bases over the coming years
as well as the ability of City management to continue to provide efficient City services.
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DEBT INFORMATION
Payment Record
The City has not defaulted in the payment of the principal of, or interest on, its tax debt obligations within
the last sixty-five years nor has the City issued any refunding securities for the purpose of preventing a
default in the payment of the principal of, or interest on, its tax debt obligations within this period.
Authority for Issuance of Debt; Limitations
The City is authorized to issue ad valorem tax supported general improvement bonds. A majority vote of
the qualified voters is ordinarily required to authorize the issuance of ad valorem tax supported bonds for
general improvements. Notes, including bond anticipation notes and commercial paper notes, also may
be authorized by a majority vote of the qualified voters in connection with the approval of ad valorem tax
supported general improvement bonds.
The City is also empowered to issue ad valorem tax supported certificates of obligation, including the
Certificates, for a variety of purposes including purchasing an existing utility and for paying any
contractual obligation incurred in the construction of public works or the purchase of land, materials and
other supplies or services for the City's needs. Such certificates of obligation may be refunded by tax
supported bonds. In addition, the City may issue certificates of obligation with a pledge of both taxes and
revenues provided the City otherwise has the right to pledge the revenues involved. The issuance of
certificates of obligation does not require voter approval except under certain circumstances. The City
may also issue ad valorem tax supported contractual obligations without right of referendum for the
purpose of acquiring personal property.
The City is also authorized to issue revenue bonds for certain purposes. The authorized purposes include
the financing of the water system, wastewater disposal system, gas system, solid waste system,
transportation system, civic center, airport and parks. Revenue bond indebtedness is not considered in
determining the legal debt margin for ad valorem tax supported bonds.
INVESTMENT POLICY
Available City funds are invested as authorized by Texas law and in accordance with investment policies
approved by the City Council. Both State law and the City's investment policies are subject to change.
Legal Investments. Under Texas law, the City is authorized to invest in (1) obligations, including letters
of credit, of the United States or its agencies and instrumentalities, (2) direct obligations of the State of
Texas or its agencies and instrumentalities, (3) collateralized mortgage obligations directly issued by a
federal agency or instrumentality of the United States, the underlying security for which is guaranteed by
an agency or instrumentality of the United States, (4) other obligations, the principal of and interest on
which are unconditionally guaranteed or insured by, or backed by the full faith and credit of the State of
Texas or the United States or their respective agencies and instrumentalities, (5) obligations of states,
agencies, counties, cities, and other political subdivisions or any state rated as to investment quality by a
nationally recognized investment rating firm not less than A or its equivalent, (6) certificates of deposit
meeting the requirements of Chapter 2256, Texas Government Code (the "Public Funds Investment Act ")
that are issued by an institution that has its main office or a branch office in the State of Texas and are
guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund, or are secured as to principal by obligations described in clauses (1) through (5) and
clause (13) or in any other manner and amount provided by law for City deposits, (7) fully collateralized
repurchase agreements that have a defined termination date, are fully secured by obligations described in
clause (1) and deposited at the time the investment is made with the City or with a third party selected and
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approved by the City, and are placed through a primary government securities dealer or a financial
institution doing business in the State of Texas, (8) bankers' acceptances with the remaining term of 270
days or less, if the short-term obligations of the accepting bank or its parent are rated at least A -1 or P -1
or the equivalent by at least one nationally recognized credit rating agency, (9) commercial paper that is
rated at least A -1 or P -1 or the equivalent by either (a) two nationally recognized credit rating agencies or
(b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of
credit issued by a U.S. or state bank, (10) no-load money market mutual funds registered with and
regulated by the Securities and Exchange Commission that have a dollar weighted average portfolio
maturity of 90 days or less and include in their investment objectives the maintenance of a stable net asset
value of $1 for each share, (11) no-load mutual fund registered with the Securities and Exchange
Commission that: have an average weighted maturity of less than two years; invest exclusively in
obligations described in the preceding clauses and clause (13), and are continuously rated as to investment
quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent,
(12) public funds investment pools that have an advisory board which includes participants in the pool
and are continuously rated as to investment quality by at least one nationally recognized investment rating
firm of not less than AAA or its equivalent or no lower than investment grade with a weighted average
maturity no greater than 90 days, and (13) bonds issued, assumed or guaranteed by the State of Israel.
Texas law also permits the City to invest bond proceeds in a guaranteed investment contract subject to the
limitations set forth in the Public Funds Investment Act.
Entities such as the City may enter into securities lending programs if (1) the securities loaned under the
program are 100% collateralized, a loan made under the program allows for termination at any time and a
loan made under the program is either secured by (a) obligations that are described in clauses (1) through
(5) and clause (13) above, (b) irrevocable letters of' credit issued by a state or national bank that is
continuously rated by a nationally recognized investment rating firm at not less than A or its equivalent or
(c) cash invested in obligations described in clauses (1) through (5) and clause (13) above, clauses
(9) through (11) above, or an authorized investment pool; (ii) securities held as collateral under a loan are
pledged to such investing entity or a third party designated such investing entity; (iii) a loan made under
the program is placed through either a primary government securities dealer or a financial institution
doing business in the State of Texas; and (iv) the agreement to lend securities has a term of one year or
less.
The City may invest in such obligations directly or through government investment pools that invest
solely in such obligations provided that the pools are rated no lower than AAA or AAAm or an equivalent
by at least one nationally recognized rating service. The City is specifically prohibited from investing in:
(1) obligations whose payment represents the coupon payments on the outstanding principal balance of
the underlying mortgage- backed security collateral and pays no principal; (2) obligations whose payment
represents the principal stream of cash flow from the underlying mortgage - backed security and bears no
interest; (3) collateralized mortgage obligations that have a stated final maturity of greater than 10 years;
and (4) collateralized mortgage obligations the interest rate of which is determined by an index that
adjusts opposite to the changes in a market index.
Investment Policies. Under Texas law, the City is required to invest its funds in accordance under
written investment policies that primarily emphasize safety of principal and liquidity; that address
investment diversification, yield, maturity, and the quality and capability of investment management; and
that includes a list of authorized investments for City funds, maximum allowable stated maturity of any
individual investment and the maximum average dollar- weighted maturity allowed for pool fund groups.
All City funds must be invested consistent with a formally adopted "Investment Strategy Statement" that
specifically addresses each funds' investment. Each Investment Strategy Statement will describe its
objectives concerning: (1) suitability of investment type, (2) preservation and safety of principal,
(3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield.
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Under Texas law, City investments must be made "with judgment and care, under prevailing
circumstances, that a person of prudence, discretion, and intelligence would exercise in the management
of the person's own affairs, not for speculation, but for investment, considering the probable safety of
capital and the probable income to be derived." At least quarterly the investment officers of the City must
submit to the City Council an investment report detailing (1) the investment position of the City, (2) that
all investment officers jointly prepared and signed the report, (3) the beginning market value, any
additions and changes to market value and the ending value of each pooled fund group, (4) the book value
and market value of each separately listed asset at the beginning and end of' the reporting period, (5) the
maturity date of each separately invested asset, (6) the account or fund or pooled fund group for which
each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates
to (a) adopted investment strategy statements and (b) state law. No person may invest City funds without
express written authority from the City Council.
Additional Provisions. Under Texas law the City is additionally required to (1) annually review its
adopted policies and strategies, (2) require any investment officers' with personal business relationships
or relative with firms seeking to sell securities to the entity to disclose the relationship and file a statement
with the Texas Ethics Commission and the City Council, (3) require the registered principal of firms
seeking to sell securities to the City to (a) receive and review the City's investment policy,
(b) acknowledge that reasonable controls and procedures have been implemented to preclude imprudent
investment activities, and (c) deliver a written statement attesting to these requirements, (4) perform an
annual audit of the management controls on investments and adherence to the City's investment policy,
(5) provide specific investment training for the Treasurer, Chief Financial Officer and investment officers,
(6) restrict reverse repurchase agreements to not more than 90 days and restrict the investments of reverse
repurchase agreement funds to no greater than the term of the reverse repurchase agreement, (7) restrict
the investment in non -money market mutual funds of any portion of bond proceeds, reserves and funds
held for debt service and to no more than 15% of the entity's monthly average fund balance, excluding
bond proceeds and reserves and other funds held for debt service, and (8) require local govemment
investment pools to conform to the new disclosure, rating, net asset value, yield calculation, and advisory
board requirements.
City policies require investments in accordance with applicable state law. All investments which are
authorized by State statute, with the exception of bankers' acceptances, commercial paper, collateralized
mortgage obligations, reverse repurchase agreements, no -load money market mutual funds, no -load
mutual funds, and bonds issued, assumed or guaranteed by the State of Israel, are acceptable for
investment purposes under the City's Statement of Investment Policy. The City generally invests in
obligations of the United States or its agencies and instrumentalities.
Under Texas law, the City may contract with an investment management firm registered under the
Investment Advisers Act of 1940 (15 U.S.C. Section 80b -1 et seq.) or with the State Securities Board to
provide for the investment and management of its public funds or other funds under its control for a term
up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or
extend such a contract, the City must do so by order, ordinance or resolution. The City has not contracted
with, and has no present intention of contracting with, any such investment management firm or the State
Securities Board to provide such services.
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Current Investments. As of July 31, 2008, the following percentages by investment type applied to the
City's investable funds, which had an aggregate par value of $282,556,882.65, a market value of
$282,283,158.56 and a book value of $282,561,452.09.
Par Value:
Money Market
Local Govt. Inv. Pool
Bank Certificate of Deposit
U. S. Agencies
Total
Market Value
Book Value
Market to Book Ratio
Weighted Average Maturity
Portfolio by Account Type (Par Value)
Money Market
Local Govt. Inv. Pool
Bank Certificate of Deposit
U.S. Agencies
Total
City Portfolio
$8,588,317.47
53,111,485.64
20,457,079.54
200.400.000.00
$ 282.556.882.65
$ 282,283,158.56
282,561,452.09
99.90%
264 days
3.04%
18.80%
7.24%
70.92%
100%
As of such date, the market value of such investments (as determined by the City by reference to
published quotations, dealer bids, and comparable information) was approximately 100% of book value.
No funds of the City are invested in derivative securities, i.e., securities whose rate of return is determined
by reference to some other instrument, index, or commodity.
Fiscal
Year Salaries
1997 -98 $96,621,593
1998 -99 101,889,392
1999 -00 102,242,291
2000 -01 100,927,146
2001 -02 105,312,317
2002 -03 112,071,665
2003 -04 121,245,107
2004 -05 120,616,280
2005 -06 124,601,361
2006 -07 127,318,989
(2)2007-08 133,145,260
PAYROLL STATISTICS
Social Security
and Medicare
$5,990,993
6,149,968
6,241,322
6,064,690
6,418,618
6,818,824
7,370,874
7,350,960
5,903,267
7,603,602
7,991,390
II) This includes full time and summer employees.
m Unaudited.
Texas Fireman's
Municipal Relief and
Ret. System Retirement
$8,805,861 $1,942,873
9,019,103 2,248,927
9,026,902 2,171,942
8,686,111 2,223,410
9,826,228 2,300,476
10,241,750 2,423,671
11,386,987 2,673,855
12,827,988 2,482,092
13,853,273 2,795,774
14,372,192 3,040,260
15,603,377 3,575,262
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Total Paid by
City as
Employer
$113,361,320
119,307,390
119,682,457
117,901,357
123,857,639
131,555,910
143,176,822
143,277,320
147,153,675
152,335,043
160,315,289
Number of
Employees
Last Payday
of Fiscal
Year(1)
3,584
3,276
3,277
3,278
3,264
3,264
3,317
3,126
3,183
3,217
3,309
Retirement Systems
The City participates in funding two retirement plans: (1) all City employees, except firefighters, are
provided benefits through a non - institutional, joint contributory, defined benefit plan in the state -wide
Texas Municipal Retirement System (TMRS), one of 821 administered by TMRS, an agent multiple -
employer public employee retirement system and (2) all firefighters are covered by the Fire Fighters
Retirement System of Corpus Christi, a single - employer defined benefit pension plan, both of which are
described in Note 9 (Notes to Financial Statements) and Employment Retirement Benefits - Analysis of
Funding Progress (Required Supplementary Information) set forth in Appendix C.
Other Post - Employment Benefits [UPDATE]
The City currently provides certain post - employment benefits to its employees, as described in Notes 9
and 10 (Notes to the Financial Statements) set forth in Appendix C. The City intends to comply with the
requirements of GASB No. 43 and 45, with respect to the reporting of post - employment benefits, in
accordance with the timelines set forth in GASB No. 43 and 45. As of the date of this Official Statement,
the City has retained the services of Mercer, Oliver, Wyman Actuarial Consulting Inc., an actuarial firm
to prepare the calculations required under GASB No. 43 and 45.
Collective Bargaining Agreements
Under State law, municipal firefighters and police officers may form collective bargaining groups which
may negotiate employment contracts on behalf of members of such groups. However, State law forbids
such groups from participating in strikes or other work stoppages. The City's firemen and police are
organized in collective bargaining groups and currently are working under a negotiated employment
agreement with the City. No other City employees are similarly organized for employment term
negotiations.
ANNEXATION PROGRAM
Background
The City has continued to expand its jurisdiction, and thus increase its obligation to provide services and,
correspondingly its tax base, by annexing selected adjacent areas. The City may annex additional
territory adjoining or lying adjacent to the City by ordinance.
The total area of the City is approximately 498 square miles, of which approximately 161 square miles is
land area and 337 square miles water area. The areas covered by water require no normal City Services,
but do produce considerable revenues from oil and gas properties located therein and allow the City to
enforce ordinances regarding uses in the areas. The City has had numerous annexations since its
beginning. Significant annexations occurred in 1950 when 92 square miles of water area in Corpus
Christi and Nueces Bay were annexed, in 1962 when 48 square miles of land west and south of the City
were annexed, in 1966 when 31 square miles of water area in Corpus Christi Bay were annexed and in
1970 when 63 square miles of water area in Corpus Christi Bay and Laguna Madre were annexed.
However, four oil companies which owned leases included in the 1970 annexation of bay water areas
contended the annexation was not legal. The matter ended up in court and was settled in favor of the
City. In December, 1972 an election to re-affirm the annexation of November, 1970 was held and
carried. On November 18, 1981, the City annexed approximately 3,171 acres (4.95 square miles) of land
in addition to fringe area development made up of commercial, industrial and residential subdivisions.
On August 9, 1986 an election was defeated to annex more than 60 square miles of Padre and Mustang
Islands. The City has already annexed the developed areas of Padre Island bounded by Laguna Madre,
Packery Channel, the Gulf of Mexico and the Southern boundary of Nueces County. Through a
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referendum on April 11, 1989, the City annexed approximately 2,527 acres (3.95 square miles) of land.
Changes in the City's Charter have simplified the method by which a municipality may annex land.
Under the Charter revisions: "The City shall have the power by ordinance to fix the boundary limits of the
city and to provide for the alteration and extension of the boundary limits." From 1990 thru 1995, the
City annexed 9,988 acres (approximately 4.95 square miles) of land primarily located south of SPID and
east of Staples Street. From 1996 thru 1998, the amount of land annexed by the City was minimal as only
32 acres or .05 square miles of land area was annexed. In 1999, the City initiated annexations for lands
adjacent to the northwest portion of the City, and on Mustang and Padre Islands located along the eastern
edge of the City. On December 21, 1999, 4,852 acres or 7.58 square miles was annexed into the City. As
part of a major annexation program in 2001, the City annexed a total of 15,786 acres (24.7 square miles)
effective December 31, 2001. On April 17, 2002 the City annexed 678.39 acres (1.06 square miles) of
land. Several existing major resorts and condominiums on Mustang/North Padre Islands were included as
part of the areas annexed, resulting in a significant increase in hotel tax revenue collected by the City.
Source: City Geographic Information System. Any differences in acreage between the historically
adopting annexation ordinance and the annexation figures provided are attributed to the modem methods
used by the City's Geographic Information System. These methods include gps (global satellite
positioning system), aerial photography, property records, etc.
LITIGATION
The City is a defendant in various tort claims and lawsuits involving general liability, automobile liability,
civil rights actions, and various contractual matters. In the opinion of the City's management and the City
Attorney's office, the outcome of the pending litigation will not have a material adverse effect on the
City's financial position or operations.
Upon the delivery of the Certificates, the City will certify that no litigation of any nature has been filed or
is then pending to restrain the issuance and delivery of the Certificates or which would affect the
provisions made for their payment or security or in any manner question the validity thereof.
GASB 34 STATEMENT
In June 1999, the Govemmental Accounting Standards Board ( "GASB ") issued Statement No. 34, "Basic
Financial Statements - and Management's Discussion and Analysis - for State and Local Governments"
( "GASB 34 "). The objective of GASB 34 is to enhance the clarity and usefulness of the general- purpose
external financial reports of state and local governments to its citizenry, legislature and oversight bodies,
and investors and creditors. The City implemented GASB 34 beginning with its fiscal year ending July
31, 2002. While adoption of GASB 34 altered the presentation of the City's financial information, City
management believes that the adoption of GASB 34 did not have any material adverse impact on the
City's financial position, results of operation, or cash flows.
LEGAL MATTERS
The City will furnish the Underwriters with a complete transcript of proceedings incident to the
authorization and issuance of the Certificates, including the unqualified approving legal opinion of the
Attorney General of the State of Texas to the effect that the Certificates are valid and legally binding
obligations of the City, and based upon examination of such transcript of proceedings, the approval of
certain legal matters by Bond Counsel, to the effect that the Certificates, issued in compliance with the
provisions of the Ordinance, are valid and legally binding obligations of the City and, subject to the
qualifications set forth herein under "TAX MATTERS ", the interest on the Certificates is exempt from
federal income taxation under existing statutes, published rulings, regulations, and court decisions. In its
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capacity as Bond Counsel, McCall, Parkhurst & Horton L.L.P., Dallas, Texas has reviewed the
information under the captions "THE CERTIFICATES ", "TAX MATTERS ", "LEGAL INVESTMENTS
AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS ", "CONTINUING DISCLOSURE OF
INFORMATION" (except under the subheading "Compliance with Prior Undertakings" as to which no
opinion is expressed), and "REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR
SALE" in the Official Statement and such firm is of the opinion that the information relating to the
Certificates and the Ordinance contained under such captions is a fair and accurate summary of the
information purported to be shown and that the information and descriptions contained under such
captions relating to the provisions of applicable state and federal laws are correct as to matters of law.
The customary closing papers, including a certificate to the effect that no litigation of any nature has been
filed or is then pending to restrain the issuance and delivery of the Certificates or which would affect the
provisions made for their payment or security, or in any manner questioning the validity of the
Certificates will also be furnished. The legal fees to be paid Bond Counsel for services rendered in
connection with the issuance of Certificates are contingent on the sale and delivery of the Certificates. In
connection with the transactions described in the Official Statement, Bond Counsel has been engaged by
and represents only the City. The legal opinion of Bond Counsel will accompany the obligations
deposited with DTC or will be printed on the definitive obligations in the event of the discontinuance of
the Book -Entry-Only System.
Certain legal matters will be passed upon for the City by the City Attorney and for the Underwriters by
Fulbright & Jaworski L.L.P., San Antonio, Texas.
The various legal opinions to be delivered concurrently with the delivery of the Certificates express the
professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed
therein. In rendering a legal opinion, the attorney does not become an insurer or guarantor of the
expression of professional judgment, of the transaction opined upon, or of the future performance of the
parties to the transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute
that may arise out of the transaction.
TAX MATTERS
Opinion
On the date of initial delivery of the Certificates, McCall, Parkhurst & Horton L.L.P., Dallas, Texas,
Bond Counsel, will render its opinion that, in accordance with statutes, regulations, published rulings and
court decisions existing on the date thereof ( "Existing Law "), (1) interest on the Certificates for federal
income tax purposes will be excludable from the "gross income" of the holders thereof and (2) the
Certificates will not be treated as "specified private activity bonds ", the interest on which would be
included as an alternative minimum tax preference item under section 57(aX5) of the Internal Revenue
Code of 1986 (the "Code "). Except as stated above, Bond Counsel will express no opinion as to any
other federal, state or local tax consequences of the purchase, ownership or disposition of the Certificates.
See Appendix D -- Form of Opinion of Bond Counsel.
In rendering its opinion, Bond Counsel will rely upon (a) certain information and representations of the
City, including information and representations contained in the City's federal tax certificate and
(b) covenants of the City contained in the Certificate documents relating to certain matters, including
arbitrage and the use of the proceeds of the Certificates and the property financed or refinanced therewith.
Although it is expected that the Certificates will qualify as tax- exempt obligations for federal income tax
purposes as of the date of issuance, the tax - exempt status of the Certificates could be affected by future
events. However, future events beyond the control of the City, as well as the failure to observe the
aforementioned representations or covenants, could cause the interest on the Certificates to become
taxable retroactively to the date of issuance.
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The Code and the regulations promulgated thereunder contain a number of requirements that must be
satisfied subsequent to the issuance of the Certificates in order for the interest on the Certificates to be,
and to remain, excludable from gross income for federal income tax purposes. Failure to comply with
such requirements may cause interest on the Certificates to be included in gross income retroactively to
the date of issuance of the Certificates. The opinion of Bond Counsel is conditioned on compliance by
the City with such requirements, and Bond Counsel has not been retained to monitor compliance with
these requirements subsequent to the issuance of the Certificates.
Bond Counsel's opinion represents its legal judgment based upon its review of Existing Law and the
reliance on the aforementioned information, representations and covenants. Bond Counsel's opinion is not
a guarantee of a result. Existing Law is subject to change by the Congress and to subsequent judicial and
administrative interpretation by the courts and the Department of the Treasury. There can be no
assurance that Existing Law or the interpretation thereof will not be changed in a manner which would
adversely affect the tax treatment of' the purchase, ownership or disposition of the Certificates.
A ruling was not sought from the Internal Revenue Service by the City with respect to the Certificates or
the property financed or refinanced with the proceeds of the Certificates. No assurances can be given as to
whether or not the Internal Revenue Service will commence an audit of the Certificates, or as to whether
the Internal Revenue Service would agree with the opinion of Bond Counsel. If an audit is commenced,
under current procedures the Internal Revenue Service is likely to treat the City as the taxpayer and the
Certificateholders may have no right to participate in such procedure. No additional interest will be paid
upon any determination of taxability.
Federal Income Tax Accounting Treatment of Original Issue Discount
The initial public offering price to be paid for one or more maturities of the Certificates may be less than
the principal amount thereof or one or more periods for the payment of interest on the bonds may not be
equal to the accrual period or be in excess of one year (the "Original Issue Discount Certificates "). In
such event, the difference between (i) the "stated redemption price at maturity" of each Original Issue
Discount Certificate, and (ii) the initial offering price to the public of such Original Issue Discount
Certificate would constitute original issue discount. The "stated redemption price at maturity" means the
sum of all payments to be made on the Certificates less the amount of all periodic interest payments.
Periodic interest payments are payments which are made during equal accrual periods (or during any
unequal period if it is the initial or final period) and which are made during accrual periods which do not
exceed one year.
Under Existing Law, any owner who has purchased such Original Issue Discount Certificate in the initial
public offering is entitled to exclude from gross income (as defined in section 61 of the Code) an amount
of income with respect to such Original Issue Discount Certificate equal to that portion of the amount of
such original issue discount allocable to the accrual period. For a discussion of certain collateral federal
tax consequences, see discussion set forth below.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount
Certificate prior to stated maturity, however, the amount realized by such owner in excess of the basis of
such Original Issue Discount Certificate in the hands of such owner (adjusted upward by the portion of
the original issue discount allocable to the period for which such Original Issue Discount Certificate was
held by such initial owner) is includable in gross income.
Under Existing Law, the original issue discount on each Original Issue Discount Certificate is accrued
daily to the stated maturity thereof (in amounts calculated as described below for each six -month period
ending on the date before the semiannual anniversary dates of the date of the Certificates and ratably
within each such six -month period) and the accrued amount is added to an initial owner's basis for such
Original Issue Discount Certificate for purposes of determining the amount of gain or loss recognized by
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such owner upon the redemption, sale or other disposition thereof. The amount to be added to basis for
each accrual period is equal to (a) the sum of' the issue price and the amount of original issue discount
accrued in prior periods multiplied by the yield to stated maturity (determined on the basis of
compounding at the close of each accrual period and properly adjusted for the length of the accrual
period) less (b) the amounts payable as current interest during such accrual period on such Original Issue
Discount Certificate.
The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of'
Original Issue Discount Certificates which are not purchased in the initial offering at the initial offering
price may be determined according to rules which differ from those described above. All owners of
Original Issue Discount Certificates should consult their own tax advisors with respect to the
determination for federal, state and local income tax purposes of the treatment of interest accrued upon
redemption, sale or other disposition of such Original Issue Discount Certificates and with respect to the
federal, state, local and foreign tax consequences of the purchase, ownership, redemption, sale or other
disposition of such Original Issue Discount Certificates.
Collateral Federal Income Tax Consequences
The following discussion is a summary of certain collateral federal income tax consequences resulting
from the purchase, ownership or disposition of the Certificates. This discussion is based on Existing Law,
which is subject to change or modification, retroactively.
The following discussion is applicable to investors, other than those who are subject to special provisions
of the Code, such as financial institutions, property and casualty insurance companies, life insurance
companies, individual recipients of Social Security or Railroad Retirement benefits, individuals allowed
an earned income credit, certain S corporations with accumulated earnings and profits and excess passive
investment income, foreign corporations subject to the branch profits tax and taxpayers who may be
deemed to have incurred or continued indebtedness to purchase tax- exempt obligations.
THE DISCUSSION CONTAINED HEREIN MAY NOT BE EXHAUSTIVE. INVESTORS,
INCLUDING THOSE WHO ARE SUBJECT TO SPECIAL PROVISIONS OF THE CODE, SHOULD
CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT WHICH MAY BE
ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX -
EXEMPT OBLIGATIONS BEFORE DETERMINING WHETHER TO PURCHASE THE
CERTIFICATES.
Interest on the Certificates will be includable as an adjustment for "adjusted current earnings" to calculate
the alternative minimum tax imposed on corporations by section 55 of the Code. Section 55 of the Code
imposes a tax equal to 20 percent for corporations, or 26 percent for noncorporate taxpayers (28 percent
for taxable income exceeding $175,000), of the taxpayer's "alternative minimum taxable income," if the
amount of such alternative minimum tax is greater than the taxpayer's regular income tax for the taxable
year.
Under section 6012 of the Code, holders of tax- exempt obligations, such as the Certificates, may be
required to disclose interest received or accrued during each taxable year on their returns of federal
income taxation.
Section 1276 of the Code provides for ordinary income tax treatment of gain recognized upon the
disposition of a tax- exempt obligation, such as the Certificates, if such obligation was acquired at a
"market discount" and if the fixed maturity of such obligation is equal to, or exceeds, one year from the
date of issue. Such treatment applies to "market discount bonds" to the extent such gain does not exceed
the accrued market discount of such bonds; although for this purpose, a de minimis amount of market
discount is ignored. A "market discount bond" is one which is acquired by the holder at a purchase price
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which is less than the stated redemption price at maturity or, in the case of a bond issued at an original
issue discount, the "revised issue price" (i.e., the issue price plus accrued original issue discount). The
"accrued market discount" is the amount which bears the same ratio to the market discount as the number
of days during which the holder holds the obligation bears to the number of days between the acquisition
date and the final maturity date.
State, Local and Foreign Taxes
Investors should consult their own tax advisors concerning the tax implications of the purchase,
ownership or disposition of the Certificates under applicable state or local laws. Foreign investors should
also consult their own tax advisors regarding the tax consequences unique to investors who are not United
States persons.
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 271.051, as amended, of the Certificate of Obligation Act provides that the Certificates are legal
and authorized investments for banks, savings banks, trust companies, savings and loan associations,
insurance companies, fiduciaries, and trustees, and for the sinking funds of cities, school districts, and
other political subdivisions or public agencies of the State of Texas. Texas law further provides that
obligations, such as the Certificates are eligible to secure deposits of the state, its agencies, and political
subdivisions, and are legal security for those deposits to the extent of their face value. For political
subdivisions in Texas which have adopted investment policies and guidelines in accordance with the
Public Funds Investment Act (Chapter 2256, Texas Government Code), the Certificates may have to be
assigned a rating of "A" or its equivalent as to investment quality by a national rating agency before such
obligations are eligible investments for sinking funds and other public funds. See "RATINGS" herein.
Section 1201.041 of the Public Securities Procedures Act (Chapter 1201, Texas Government Code)
provides that the Certificates are negotiable instruments governed by Chapter 8, Texas Business and
Commerce Code, and are legal and authorized investments for insurance companies, fiduciaries, and
trustees, and for the sinking funds of municipalities or other political subdivisions or public agencies of
the State of Texas. With respect to investment in the Certificates by municipalities or other political
subdivisions or public agencies of the State of Texas, the Public Funds Investment Act requires that the
Certificates be assigned a rating of "A" or its equivalent as to investment quality by a national rating
agency. See "RATINGS" herein. In addition, various provisions of the Texas Finance Code provide that,
subject to a prudent investor standard, the Certificates are legal investments for state banks, savings
banks, trust companies with at least $1 million of capital, and savings and loan associations. The
Certificates are eligible to sure deposits of any public funds of the State, its agencies, and its political
subdivisions, and are legal security for those deposits to the extent of their market value.
The City has made no investigation of other laws, rules, regulations or investment criteria which might
apply to such institutions or entities or which might limit the suitability of the Certificates for any of the
foregoing purposes or limit the authority of such institutions or entities to purchase or invest in the
Certificates for such purposes. The City has made no review of laws in other states to determine whether
the Certificates are legal investments for various institutions in those states.
RATINGS
Ratings applications have been submitted to Moody's Investors Service, Inc. ( "Moody's "), Standard &
Poor's Rating Services, a Division of The McGraw -Hill Companies, Inc. ( "S &P "), and Fitch Ratings
( "Fitch ") to obtain a rating on the Certificates. The results of this process will be communicated by the
City when available. See `BOND INSURANCE" herein. The City's non -credit enhanced ad valorem
tax- supported debt is rated "Al ", "A + ", and "AA -" by Moody's, S &P and Fitch, respectively. An
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explanation of the significance of such ratings may be obtained from the company fumishing the rating.
The City furnished the rating agencies certain information which is not included in this Official
Statement. The rating reflects only the view of such organization at the time such rating was given, and
the City makes no representation as to the appropriateness of the rating. There is no assurance that such
rating will continue for any given period of time or that it will not be revised downward or withdrawn
entirely by such rating company, if in the sole judgment of such rating company, circumstances so
warrant. Any such downward revision or withdrawal of rating may have an adverse effect on the market
price of the Certificates.
CONTINUING DISCLOSURE OF INFORMATION
In the Ordinance, the City has made the following agreements for the benefit of the holders and beneficial
owners of the Certificates. The City is required to observe the agreement for so long as it remains
obligated to advance funds to pay the Certificates. Under the agreement, the City will be obligated to
provide certain updated financial information and operating data annually, and timely notice of specified
material events, to certain information vendors. This information will be available to securities brokers
and others who subscribe to receive the information from the vendors.
Annual Reports
The City will provide certain updated financial information and operating data to certain information
vendors annually. The information to be updated includes all quantitative financial information and
operating data with respect to the City of the general type included in Appendix A to this Official
Statement ( "Financial Information ") under the headings "DEBT PAYABLE FROM TAXES ",
"GENERAL REVENUES ", "GENERAL EXPENSES ", "AD VALOREM TAXES ", "FIVE YEAR
OPERATING STATEMENT FOR SOLID WASTE ", "MUNICIPAL HOTEL OCCUPANCY TAXES ",
and "THE TAX INCREMENT FINANCING ACT ", and in Appendix C. The City will update and
provide this information within six months after the end of each fiscal year ending in or after 2008. The
City will provide the updated information to each nationally recognized municipal securities information
repository ( "NRMSIR ") and to any state information depository ( "SID ") that is designated by the State of
Texas and approved by the staff of the United States Securities and Exchange Commission (the "SEC ").
The City may provide updated information in full text or may incorporate by reference certain other
publicly available documents, as permitted by SEC Rule 15c2 -12. The updated information will include
audited financial statements, if the City commissions an audit and it is completed by the required time. If
audited financial statements are not available by the required time, the City will provide unaudited
financial statements by the required time, and will provide audited financial statements when and if the
audit report becomes available. Any such financial statements will be prepared in accordance with the
accounting principles described in Appendix C, the Ordinance or such other accounting principles as the
City may be required to employ from time to time pursuant to state law or regulation.
The City's current fiscal year end is July 31. Accordingly, it must provide updated information by
January 31 of the following year, unless the City changes its fiscal year. If the City changes its fiscal
year, it will notify each NRMSIR and any SID of the change.
Material Event Notices
The City will also provide timely notices of certain events to certain information vendors. The City will
provide notice of any of the following events with respect to the Certificates, if such event is material to a
decision to purchase or sell Certificates: (1) principal and interest payment delinquencies; (2) non-
payment related defaults; (3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or
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liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax- exempt
status of the Certificates; (7) modifications to rights of holders of the Certificates; (8) Certificate calls;
(9) defeasances; (10) release, substitution, or sale of property securing repayment of the Certificates; and
(11) rating changes. Neither the Certificates nor the Ordinance make any provision for debt service
reserves, credit enhancement, or liquidity enhancement. In addition, the City will provide timely notice
of any failure by the City to provide information, data, or financial statements in accordance with its
agreement described above under "Annual Reports ". The City will provide each notice described in this
paragraph to any SID and to either each NRMSIR or the Municipal Securities Rulemaking Board
( "MSRB ").
Any such filing may be made by the City solely by transmitting such filing to the Municipal Advisory
Council of Texas (the "MAC ") as provided at http: / /www.DisclosureUSA.org, unless the SEC has
withdrawn the interpretive advice stated in its letter to the MAC dated September 7, 2004.
Availability of Information from NRMSIRs and SID
The City has agreed to provide the foregoing information only to NRMSIRs and any SID. The
information will be available to holders of Certificates only if the holders comply with the procedures and
pay the charges established by such information vendors or obtain the information through securities
brokers who do so.
The MAC has been designated by the State of Texas and approved by the SEC staff as a qualified SID.
The address of the MAC is 600 West 8th Street, Post Office Box 2177, Austin, Texas 78768 -2177, and
its telephone number is 512/476 -6947. The MAC has also received SEC approval to operate, and has
begun to operate, a "central post office" for information filings made by municipal issuers, such as the
Authority. A municipal issuer may submit its information filings with the central post office, which then
transmits such information to the NRMSIRs and the appropriate SID for filing. This central post office
can be accessed and utilized at www.DisclosureUSA.org ( "DisclosureUSA "). The City may utilize
DisclosureUSA for the filing of information relating to the Certificates.
Limitations and Amendments
The City has agreed to update information and to provide notices of material events only as described
above. The City has not agreed to provide other information that may be relevant or material to a
complete presentation of its financial results of operations, condition, or prospects or agreed to update any
information that is provided, except as described above. The City makes no representation or warranty
concerning such information or conceming its usefulness to a decision to invest in or sell Certificates at
any future date. The City disclaims any contractual or tort liability for damages resulting in whole or in
part from any breach of its continuing disclosure agreement or from any statement made pursuant to its
agreement, although holders or registered owners of Certificates may seek a writ of mandamus to compel
the City to comply with its agreement.
The City may amend its continuing disclosure agreement to adapt to changed circumstances that arise
from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of
operations of the City, if the agreement, as amended, would have permitted an underwriter to purchase or
sell Certificates in the offering described herein in compliance with SEC Rule 15c2 -12 and either the
holders of a majority in aggregate principal amount of the outstanding Certificates consent or any person
unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment
will not materially impair the interests of the holders or beneficial owners of the Certificates. If the City
amends its agreement, it must include with the next financial information and operating data provided in
accordance with its agreement described above under "Annual Reports" an explanation, in narrative form,
of the reasons for the amendment and of the impact of any change in the type of information and data
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provided. The City may also amend or repeal the provisions of this continuing disclosure agreement if
the SEC amends or repeals the applicable provision of SEC Rule 15c2 -12 or a court of final jurisdiction
enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the
provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling
Certificates, respectively, in the primary offering of the Certificates.
Compliance with Prior Undertakings
During the past five years, the City has complied in all material respects with continuing disclosure
agreements made by it in accordance with SEC Rule 15c2 -12.
REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE
The sale of the Certificates has not been registered under the Federal Securities Act of 1933, as amended,
in reliance upon the exemption provided thereunder by Section 3(aX2); and the Certificates have not been
qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor
have the Certificates been qualified under the securities acts of any jurisdiction. The City assumes no
responsibility for qualification of the Certificates under the securities laws of any jurisdiction in which the
Certificates may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of
responsibility for qualification for sale or other disposition of the Certificates shall not be construed as an
interpretation of any kind with regard to the availability of any exemption from securities registration
provisions.
UNDERWRITING
M.E. Allison & Co., Inc., as the authorized representative of a group of underwriters, has agreed, subject
to certain conditions, to purchase the Certificates from the City at an underwriting discount of $
The Underwriters' obligation is subject to certain conditions precedent. The Underwriters will be
obligated to purchase all of the Certificates if any Certificates are purchased. The Certificates may be
offered and sold to certain dealers and others at prices lower than such public offering price, and such
public prices may be changed from time to time, by the Underwriters.
The Underwriters have provided the following sentence for inclusion in this Official Statement. The
Underwriters have reviewed the information in this Official Statement in accordance with their
responsibilities to investors under the federal securities laws as applied to the facts and circumstances of
this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information.
FINANCIAL ADVISOR
M.E. Allison & Co., Inc. (the "Financial Advisor") is employed by the City in connection with the
issuance of the Certificates and in such capacity, has assisted the City in compiling documents related
thereto. Although the Financial Advisor assisted in drafting this Official Statement, the Financial Advisor
has not independently verified all of the data contained in it or conducted a detailed investigation of the
affairs of the City to determine the accuracy or completeness of this Official Statement. No person should
presume that the limited participation of the Financial Advisor means that the Financial Advisor assumes
any responsibility for the accuracy or completeness of any of the information contained in the Official
Statement. The fee of the Financial Advisor for services rendered is contingent upon the issuance and sale
of the Certificates.
The Financial Advisor has reviewed the information in this Official Statement in accordance with its
responsibilities to the City and, as applicable, to investors under the federal securities laws as applied to
the facts and circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy
or completeness of such information.
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INDEPENDENT ACCOUNTANTS
This Official Statement includes the combined financial statements of the City for the fiscal year ended
July 31, 2007. These combined financial statements have been examined by Collier, Johnson & Woods,
P.C., Independent Certified Public Accountants, as stated in their report set forth in Exhibit C to this
Official Statement. The City has not requested Collier, Johnson & Woods to reissue its audited financial
statements and Collier, Johnson & Woods has not performed any procedures in connection with this
Official Statement.
MISCELLANEOUS
All information contained in this Official Statement is subject, in all respects, to the complete body of
information contained in the original sources thereof and no guaranty, warranty or other representation is
made concerning the accuracy or completeness of the information herein. In particular, no opinion or
representation is rendered as to whether any projection will approximate actual results, and all opinions,
estimates and assumptions, whether or not expressly identified as such, should not be considered
statements of fact.
No person has been authorized to give any information or to make any representations other than those
contained in this Official Statement, and if given or made, such other information or representations must
not be relied upon as having been authorized by the City. This Official Statement does not constitute an
offer to sell or solicitation of an offer to buy in any state in which such offer or solicitation is not
authorized or in which the person making such offer or solicitation is not qualified to do so or to any
person to whom it is unlawful to make such offer of solicitation.
FORWARD LOOKING STATEMENTS
The statements contained in this Official Statement, and in any other information provided by the City,
that are not purely historical, are forward - looking statements, including statements regarding the City's
expectations, hopes, intentions, or strategies regarding the future. Readers should not place undue
reliance on forward- looking statements. All forward- looking statements included in this Official
Statement are based on information available to the City on the date hereof, and the City assumes no
obligation to update any such forward- looking statements. It is important to note that the City's actual
results could differ materially from those in such forward- looking statements.
The forward- looking statements herein are necessarily based on various assumptions and estimates and
are inherently subject to various risks and uncertainties, including risks and uncertainties relating to the
possible invalidity of the underlying assumptions and estimates and possible changes or developments in
social, economic, business, industry, market, legal and regulatory circumstances and conditions and
actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and
competitors, and legislative, judicial and other governmental authorities and officials. Assumptions
related to the foregoing involve judgments with respect to, among other things, future economic,
competitive, and market conditions and future business decisions, all of which are difficult or impossible
to predict accurately and many of which are beyond the control of the City. Any of such assumptions
could be inaccurate and, therefore, there can be no assurance that the forward- looking statements included
in this Official Statement would prove to be accurate.
AUTHORIZATION OF THE OFFICIAL STATEMENT
The Official Statement will be approved as to form and content and the use thereof in the offering of the
Certificates will be authorized, ratified and approved by the City Council on the date of sale, and the
80250741.5
- 24 -
-269-
Underwriters will be furnished, upon request, at the time of payment for and the delivery of the
Certificates, a certified copy of such approval, duly executed by the proper officials of the City.
The Ordinance will also approve the form and content of this Official Statement, and any addenda,
supplement or amendment thereto issued on behalf of the City, and authorize its further use in the
reoffering of the Certificates by the Underwriters.
This Official Statement has been approved by the City Council of the City for distribution in accordance
with the provisions of the Securities and Exchange Commission's rule codified at 17 C.F.R. Section
240.15c2 -12.
ATTEST:
City Secretary
80250741.5
By:
Mayor
- 25 -
-270-
[This page intentionally left blank.]
80250741.5 - 26 -
-271-
APPENDIX A
FINANCIAL INFORMATION
DEBT PAYABLE FROM TAXES
Bonded Debt
The table below shows the amount of direct tax supported debt of the City as of August 1, 2008 and adjusted to include the
Certificates.
2008 Assessed Valuation (100% of Market Value) S 16,220,116,351
Less: Exemptions 2,406,781,337
Net Taxable Assessed Valuation(l) S 13.813.355.014
General Improvement Bonds Outstanding(2) S 152,030,000
Combination Tax and Revenue Certificates of Obligations Outstanding 78,410,000
Tax Notes 22,260,000
State Infrastructure Bank Notes 3,250,000
The Certificates(*) 12.000.000*
Total Indebtedness Payable from Taxes S 267,950,000
Less: Self - Supporting Debtor S 106,884,957
Applicable Interest & Sinking Funds") 10.063.710 116.948.667
Net Indebtedness Payable from Taxes 5 151.001.333
Ratio Total Debt to 2008 Net Taxable Assessed Valuation 1.94%
Ratio Net Debt to 2008 Net Taxable Assessed Valuation 1.09%
2008 Estimated City Population 295,594
Total Debt Per Capita $ 906
Net Debt Per Capita -5511
u,
ro
Pursuant to authority permitted by Section 1 -b, Article VIII of the State Constitution, the City has granted an exemption of 550,000 of
market valuation to the residence homestead of property owners over 65 years of age and an exemption of 550,000 of market
valuation for disabled property owners. Also, the legislature, pursuant to a constitutional amendment and Section 11.22 of the
Property Tax Code, mandated an additional property tax exemption for disabled veterans or the surviving spouse or children of a
deceased veteran who died while on active duty in the armed forces. The exemption from taxation applies to either real or personal
property with the amount of assessed valuation exempted ranging from 51,500 to 53,000, depending on the amount of disability or
whether the exemption is applicable to surviving spouse or children. Starting in tax year 1996, the exemption increased in range from
55,000 to 512,000 of assessed value.
Additionally, State law provides that an eligible owner of agricultural land or timberland may apply to have such property appraised
on the basis of productivity value or on the basis of market value, whichever is less. A 1981 constitutional amendment provides local
govemments the option of granting homestead exemptions of up to 30% of market value for the 1985 through 1987 tax years, and up
to 20% of market value thereafter. Minimum exemption is 55,000. Since tax year 1982, the City has granted a homestead exemption
of 10% of market value or 55,000, whichever is greater. The constitutional amendment anther provides that taxes may continue to be
levied against the value of the homestead exemption where ad valorem taxes have been previously pledged for the payment of debt, if
cessation of the levy would impair the obligation of the contract by which the debt was created. The appraisal of property within the
City is the responsibility of the Nueces County Appraisal District (the "Appraisal District"). The Appraisal District is required under
the Property Tax Code to assess all property within the Appraisal District on the basis of 100% of its value and is prohibited from
applying any assessment ratios. The value placed upon property within the Appraisal District is subject to review by the Appraisal
Review board, consisting of seven members appointed by the Board of Directors of the Appraisal District. However, the Nueces
County Appraisal District reappraises the value of property every year. The City is entitled to challenge the determination of
appraised value of property by category within the City by petition filed with the Appraisal Review Board.
Discount Bonds are shown at original issue amount.
To continue to maintain this debt as self - supporting, transfers have been made from the Tourist and Convention revenues and Airport
Parking and Texas State Aquarium revenues, Lexington Museum, Airport Lease revenues and parking, Reinvestment Zone N2,
Municipal Hotel Occupancy Taxes, Marina, Golf Centers, Storm Water, and Solid Waste in amounts sufficient to pay both principal
and interest on the self-supporting debt. See "THE CERTIFICATES- Security for the Certificates" in the body of the Official
Statement.
The Total Interest and Sinking Fund balance as of August 1, 2008 is 516,702,102. After deducting 39.63% or 56,619,032 which
applies to self- supporting debt, the balance of the Interest & Sinking Fund applicable to tax supported debt of 10,063,710.
Preliminary, subject to change.
802507413
A -1
-272-
Estimated Overlapping Debt
Expenditures of the various taxing bodies, such as school and special districts, within the territory of the
City of Corpus Christi are paid out of ad valorem taxes levied by these taxing bodies on properties within
the City. These political taxing bodies are independent of the City and may incur borrowings to finance
their expenditures. Except for the amount relating to the City, the City has not independently verified the
accuracy or completeness of such information as being accurate or complete. Furthermore, certain
entities listed may have issued additional bonds since the date stated in the table, and such entities may
have programs requiring the issuance of a substantial amount of additional bonds, the amounts of which
cannot be determined. The following table reflects the estimated share of overlapping net debt of these
various taxing bodies.
Taxing Body
Calallen I.S.D.
Corpus Christi LS.D.
Corpus Christi Junior College District
Flour Bluff I.S.D.
London I.S.D.
Nueces County (excluding special districts)
Nueces County Hospital District
Nueces County (Port of Corpus Christi)
F -M Roads and Flood Control
Nueces County Road District No. 4
Nueces County WC &ID No. 4
Port Aransas I.S.D.
Robstown I.S.D.
Tuloso- Midway I.S.D.
West Oso I.S.D.
Total Net Overlapping Debt
Net Debt(' )
$ 47,527,439
59,630,000
103,305,000
6,430,000
10,684,616
129,700,000
11,395,000
9,228,002
26,252,707
49,164,995
21,809,994
As Of
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8 -1 -08
8-1-08
Percent
Overlanning(2)
39.77%
94.22%
92.14%
85.45%
3.85%
37.05%
37.05%
37.05%
37.05%
0.00%
0.47%
70.08%
0.13%
50.16%
32.16%
Overlapping
Gross Debt
$ 18,901,663
56,183,386
95,185,227
5,494,435
411,358
48,053,850
4,221,848
6,466,984
34,129
24,661,161
7,014,094
$266,628,135
(1) Discount bonds are shown at original issue amount excluding subsequent compounding.
(2) Overlapping percentage represents the percentage of the estimated land area of the particular
entity covered by the City.
Source: Municipal Advisory Council of Texas, Texas Municipal Reports and the City.
80250741.5
A -2
-273-
Debt Ratios
The following table shows a comparison of the ratios of net tax supported debt, estimated net overlapping
debt and combined net debt to assessed value of taxable property and estimated population in the City for
the past five fiscal years. For the purpose of this table, net direct debt consists of the City's tax supported
debt less the amounts considered for self - supporting debt and applicable interest and sinking funds.
Fiscal Year Ended 7 -31
Net Taxable Assessed
Valuation
Estimated Population
Net Direct Debt - Tax
Supported
Ratio to Assessed Value
Per Capita
Net Overlapping Debt
Ratio to Assessed Value
Per Capita
Net Direct and Net
Overlapping
Overlapping Debt
Ratio to Assessed Value
Per Capita
2009P1
$13,813,355,014
295,594
5151,001,333
1.09%
5511
5266,628,135
1.93%
5902
5417,629,468
3.02%
51,413
2008
$13,107,205,639
295,594
5148,043,286
1.13%
5501
$214,864,031
1.87%
5828
5392,907,317
3.00%
51,329
2007
511,421,305,918
295,594
5154,533,327
1.35%
5523
$301,068,635
2.64%
51,019
5455,601,962
3.99%
51,541
510,478,530,288
293,122
5121,723,287
1.16%
5415
5263,160,961
2.51%
5880
5384,884,248
(I) As of August 1, 2008 and adjusted to include the Certificates. Preliminary, subject to change.
80250741.5
A -3
-274-
3.67%
51,313
2005
59,639,561,772
293,122
5127,808,249
1.33%
5436
5213,945,142
2.22%
5730
5341,753,391
3.55%
51,166
Debt Service Requirements - Tax Supported Obligations
The following table sets forth the principal and interest requirements on the City's outstanding tax support
C3
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8
Interest and Sinking Fund Management
A ten year record of the City's policy of maintaining substantial reserves for the next year's debt service
requirement on the City's Tax Supported Debt is set out below:
Principal and Interest
Year Ended Requirements
7 -31 -1998 $19,479,132
7 -31 -1999 20,205,909
7 -31 -2000 20,408,071
7 -31 -2001 20,439,775
7 -31 -2002 23,613,985
7 -31 -2003 24,221,824
7 -31 -2004 26,360,208
7 -31 -2005 27,769,909
7 -31 -2006 27,987,764
7 -31 -2007 30,622,578
7 -31 -2008 29,126,509
(5)
(6)
(2)
(3)
(4)
(6)
Tax Collections &
Other Revenue(t)
$19,429,559
20,592,558
19,276,889
20,771,761
22,817,235
24,846,218
25,704,993
26,846,675
27,915,111
31,988,938
34,206,340
1 &SF Balance
End of Year(5)
$12,481,417
12,878,565
11,747,384
12,079,370
11,282,621
11,907,015
11,251,800
10,328,564
10,255,911
11,622,271
16,702,102
Percent of Next Year's
Requirements
61.8%
63.1%
57.5%
51.2%
48.1%
46.2%
42.2%
36.0%
33.5%
39.9%
40.4%
Other revenue includes transfers from Enterprise funds for self - supporting debt, interest on reserve and construction funds
and other sources.
On December 1, 2001, a partial refunding of the City's General Improvement Bonds was effected to take advantage of lower
interest rates. Principal and interest in the amount of $11,340,000 includes 5197,291 in bond issuance expenses paid on this
refunding issue. - -
On April 1, 2003, a partial refunding of the City's General Improvement Bonds was effected to take advantage of lower
interest rates. Principal and interest in the amount of 522,575,000 includes 5338,430 in bond issuance expenses paid on this
refunding issue.
On September I, 2004, a partial refunding of' the City's General Improvement Bonds was effected to take advantage of
lower interest rates. Principal and interest in the amount of $27,769,909 includes 5365,529 in bond issuance expenses paid
on this refunding issue.
On June I, 2005, a partial refunding of the City's General Improvement Bonds was effected to take advantage of lower
interest rates. Principal and interest in the amount of $27,769,909 includes $1,129,938 in bond issuance expenses paid on
this refunding issue.
Since 1988 the principal and interest requirements and Interest and Sinking Fund balance have included the Tax Increment
Financing Zone debt, which is funded by taxes from the City, Nueces County, Corpus Christi Independent School District,
and the Corpus Christ Junior College District. In 2004, the bonds associated with the Tax Increment Financing Zone 111
matured. The following table removes the Tax Increment Financing Zone debt and reflects only the City's debt from 1998
to 2007.
Unaudited.
Year
Ended
Principal and
Interest
Requirements
7 -31 -1998 518,282,950
7 -31 -1999 19,009,051
7 -31 -2000 19,204,629
7-31 -2001 19,248,172
7 -31 -2002 22,417,562
7 -31 -2003 23,019,971
7-31 -2004 25,162,216
7 -31 -2005 27,769,909
7 -31 -2006 27,769,909
7 -31 -2007 27,769,909
Tax Collections &
Other Revenue(1)
$18,235,174
19,395,405
18,079,695
19,517,141
21,620,376
23,644,365
24,510,221
26,846,675
26,846,675
26,846,675
80250741.5 A -5
-276-
I &SF Balance
End of Year
512,481,294
12,867,642
11,747,619
12,076,587
11,279,401
11,903,795
11,251,800
10,328,564
10,328,564
10,328,564
Percent of Next Year's
Requirements(4)
65.7%
67.0%
60.8%
54.4%
50.7%
48.5%
42.2%
36.0%
36.0%
36.0%
Detailed Interest and Sinking Fund Management Index
et Actuar Actual Actual Actual
2008 - 2009 2007 -2008 2006 -2007 2005 -2006 2004 -2005
Balance on Hand Previous 516,702,102 $11,622,271 $10,255,911 $10,328,564 $11,251,800
Year
Revenues:
Ad Valorem Taxes 25,903,038 24,884,901 22,036,645 20,455,666 16,655,492
Payment from Texas State 518,318 508,685 518,117 500,427 512,182
Aquarium
Payment from Lexington 285,022 248,869 347,173 352,849 283,800
Museum Associates
Payment from Corpus Christi - - 272,234 252,841
Cony. & Visitors
Art Museum Bureau to TESS - - - 7,425
Fund Contributions:
Transfer from Airport Fund 198,181 423,206 510,582 533,518 716,862
Transfer from Golf Centers 11,030 64,763 - - 12,723
Fund
Transfer from Hotel 2,489,296 1,886,648 2,492,279 2,557,083 2,680,966
Occupancy Tax Fund
Transfer from Visitors - 15,026 15,169 15,294 15,222
Facility Fund
Transfer from General Fund 4,165,235 4,185,390 3,830,940 1,270,270 2,305,369
Transfer from Maintenance -- 147,051 148,448 149,673 148,966
Services Fund
Tiansfer from Municipal 196,869 200,194 200,378 199,432
Information Services Fund
Transfer from Marina 19,023 76,910 123,779 90,018 39,590
Revenue Fund
Transfer from Utility System 176,951 998,214 1,193,334 1,169,187 1,268,760
Fund
Transfer from Stores Fund 14,523 14,661 14,782 14,712
Transfer from Employee 15,522 15,669 15,799 15,724
Benefits Fund
Interest on Investments: 230,936 539,763 541,948 310,508
Total Revenues 33,997,030 34,206,340 31,988,938 27,915,111 26,557,604
Expenditures:
Principal retired 30,245,000 18,007,816 20,065,000 18,340,000 18,960,000
Interest 11,140,513 11,107,836 10,545,155 9,656,942 7,013,139
Paying agent fees 12,000 10,857 12,423 10,774 12,234
Refund of Bond Issuance -- -- - (19,952) 1,495,467
Cost
Total expenditures 41,397,513 29,126,509 30,622,578 27,987,764 27,480,840
Closing Balance $ 9,301,619 $16,702,102 $11,622,271 $10,255,911 $10,328,564
In
Unaudited.
80250741.5 A -6
-277-
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00
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P
a
$ 159,756,959 5165,377,146
5 155,062,716
g 0 � 1I
a
o_ w rr��0 E 9'e o8(
6 y m m O S i U 5 i a h°
-278-
General Fund Balances
Revenues:
Taxes & business fees
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Interest on investments
Miscellaneous
Total Revenues
Expenditures:
General government
Public safety
Streets
Solid Waste
Health
Community enrichment
Miscellaneous
Debt service:
Principal Retired
Interest
Total Expenditures
Excess (deficiency) of revenues over
expenditures
Other financing sources (uses):
Capital leases
Notes payable
Operating Transfers in
Operating Transfers out
Total other financing sources (uses)
Excess (deficiency) of revenues and other
sources over expenditures and other uses **
Reclassif of balance previously accounted in Prop fd
Residual equity transfer in (out)
Fund balance at beginning of year
Fund balance at end of year
** Operating deficits were planned draws.
(3)
Fiscal
Year Ending July 31
2008(3) 2007 2006 2005 2004
S 115,135,286
631,439
276,088
47,384,793
6,915,124
1,425,051
899,537
$ 172,667,318
14,786,052
102,590,234
13,272,703
17,420,365
4,366,588
20,322,138
o)
3,011,583
236,516
5176,006,179
(3,338,861)
2,279,932
5,226,267
(7,576,078)
(69,879)
(3,408,740)
32,426,604
$ 29,017,864
$ 111,500,632
3,399,993
497,520
44,505,375
6,907,942
1,500,447
1,064,729
$ 169,376,638
$14,298,422
98,665,201
13,183,111
15,168,861
4,154,426
17,885,895
o)
3,073,876
198,600
$166,628,392
D)
2,748,246
3,447,512
4,623,722
(5,405,534)
2,665,880
5,414,126
27,012,478
$ 32,426,604
$ 107,938,813
3,493,616
2,462,754
40,709,838
6,118,520
1,004,660
837,913
$ 162,566,114
514,457,192
95,426,920
12,917,944
13,556,875
4,237,565
17,727,971
n)
2,701,135
199,392
$161,244,994
$ 104,338,441 $ 99,022,494
3,321,875 2,396,870
320,715 573,810
33,612,804 31,324,167
5,658,571 5,189,598
556,088 248,091
1,566,094 882,187
$ 149,374,588 $ 139,637,217
14,428,290
81,095,158
10,496,626
13,767,222
3,918,970
17,162,371
529,809
3,326,548
221,280
$ 144,946,274
1,341,120 4,428,314
2,917,492 2,032,704
5,087,192 5,726,103
(3 239,242) (7,467,950)
4,765,442 290,857
6,106,562 4,719,171
464,802
20,441,114 15,721,943
$ 27,012,478 5 20,441,114
12,990,324
76,432,539
11,020,465
14,774,569
3,839,648
15,811,535
977,279
2,442,688
252,417
$ 138,541,464
1,095,753
3,083,773
5,573,152
(6,966,180)
1,690,745
2,786,498
12,935,445
$ 15,721,943
Beginning 2005, Miscellaneous expenditures were reclassified to General Government.
On July 10, 2007, the City Council appropriated 52,902,327 of General Fund fund balance from FY 06 -07 estimated excess revenues over
expenditures. A majority of these funds were encumbered in FY 06-07 and then expended in 07 -08; thus intentionally drawing down the
fund balance in FY 07-08. An additional 5500,588 was appropriated by the City Council from FY 07 -08 excess revenues over expenditures
for repairs to the City's Water Garden and 5306,017 was appropriated by the City Council FY 07 -08 excess revenues over expenditures for
"one- time" expenditures for the buy -down of lease purchases.
Unaudited.
80250741.5 A -8
-279-
Industrial Districts
During 1980, the City designated two areas of land within its extraterritorial jurisdiction as
industrial district areas for the purpose of establishing industrial district contracts. An annual in lieu of
tax payment is collected from industries located thereon in return for continuation of their extraterritorial
status.
Both areas combined comprise approximately 14,020 acres. The improvements located thereon
are primarily commercial or industrial in nature. The area designated as Industrial District Number One
is located on the City's northeast side contiguous to Nueces Bay and the harbor area. Industrial District
Number Two is located on the City's northwest side and is bound primarily by the east City limit line,
F.M. Road 1694 and State Highway 44. The City's authority to designate industrial districts is provided
under Section 42.044, Local Govemment Code of the Revised Civil Statutes of Texas and extends to the
entire extraterritorial jurisdiction of the City.
Subsequent to designation of the above mentioned area, all owners or lessees of property used for
industrial purposes in either area were provided an opportunity to execute one or two industrial district
agreements approved by the City. The agreement would provide an industry immunity from annexation
for the term of the contract (presently ten years), and allow an extension of the agreement beyond that
period by mutual agreement.
The agreement also provides for an annual in lieu of tax payment based on the market value of
property within each company's designated industrial district. The payment is computed by applying the
tax rate to 100 percent of the market value of the industrial district's land and to 60 percent of the market
value of improvements located on such land. New improvements completed since January 1974, are
considered at a reduced percentage of market value (i.e., on a sliding scale up to 60 percent). An
additional 15 percent of market value of an industry's improvement property is considered in calculating
the payment if an industry is not a member of the Refinery Terminal Fire Company and depends on the
City Fire Department for fire protection. All in lieu of tax payments are recorded as revenue to the City's
General Fund.
The agreement first became effective January 1, 1981, and the City Council has authorized three
extensions of all contracts, the last being effective January 1, 2004. Sixty companies are now operating
under industrial district agreements.
80250741.5
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A -9
-280-
The total assessed value of land and improvements comprising all the existing industrial districts
approximated $2,051,073,400 as of January 1, 2007. The City received industrial district payments as
follows:
m
Fiscal Year Amount
1997 -98 5,223,486
1998 -99 5,174,725
1999 -00 5,120,527
2000 -01 5,249,555
2001 -02 5,631,939
2002 -03 5,797,095
2003 -04 5,917,118
2004 -05 5,754,083
2005 -06 5,865,286
2006 -07 5,892,23311
2007 -08 5,676,868f)
The City Council adopted a financial policy to adopt the effective tax rate which lowered the actual property tax rate.
Since the assessed values for the industrial district properties die not materially increase, the amount of cash decreased.
Sales and Use Tax
The City imposes a 1% sales and use tax which is now one of the major sources of income for the
General Fund. Revenues from Sales Tax for the past ten fiscal years have been as follows:
% of ad Equivalent of Sales Tax Per
Total Valorem Ad Valorem Capita Last
Fiscal Year Collected Tax Levy Tax Rate Census
1997 -1998 28,732,516 66.10% 0.41 111.60
1998 -1999 29,641,048 65.80% 0.41 115.13
1999 -2000 30,590,459 65.72% 0.41 110.25
2000 -2001 32,051,919 67.16% 0.42 115.52
2001 -2002 32,674,742 63.17% 0.41 117.77
2002 -2003 32,351,154 59.60% 038 116.60
2003 -2004 34,120,633 59.20% 0.38 122.98
2004 -2005 36,367,571 63.09% 0.41 128.95
2005 -2006 39,442,670 60.46% 0.38 131.65
2006 -2007 42,082,398 61.68% 0.37 142.37
2007 -2008 44,253,526 60.80% 0.34 148.78
*Collections through August 1, 2008
[The remainder of this page intentionally left blank.]
80250741.5 A -I 0
-281-
GENERAL EXPENSES')
Comparison of General Expenditures by Functions
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AD VALOREM TAXES
Subject to certain exemptions, the property tax is imposed on real and personal property situated
in the City. In addition to exemptions discussed below, principal categories of exempt property include
property owned by the State of Texas or its political subdivisions if the property issued for public
purposes; property exempt from ad valorem taxation by federal law; certain household goods, family
supplies, and personal effects; farm products owned by producers; certain property associated with
charitable organizations, use and development associations, religious organizations, and qualified schools;
designated historic sites; solar and wind powered energy devices; and most individually owned
automobiles. In addition, owners of agricultural and open space land, under certain circumstances, may
request valuation of such land on the basis of productive capacity rather than market value.
Exemptions - Over 65 and Disabled
Pursuant to provisions of the Texas Constitution, the City may exempt an amount from the
assessed valuation on the homesteads of persons 65 years of age or older and certain disabled persons to
the extent approved by the City Council (and must grant an exemption to the extent voted by the majority
of the City's voters at an election called upon a petition of 20% of the number of voters voting in the
City's most recent election).
Disabled Veterans Exemptions
Beginning with the tax year 1976, under provision of the Texas Constitution, the City must grant
an exemption ranging from $1,500 to $3,000 of assessed value of residential homesteads or personal
property of disabled veterans who file for the exemption based on a formula of the percent of disability
claimed. Starting in tax year 1996, the exemption increased in range from $5,000 to $12,000 of assessed
value.
Exemption - Local Option
Under provisions of a Constitutional Amendment, the City has the option of granting a homestead
exemption of up to 20% of market value. Minimum exemption is $5,000. For the years beginning with
1982, the City has granted 10% of market value or $5,000 exemptions, whichever is greater.
In a statewide election held on September 13, 2003, Texas voters approved an amendment to
Section 1 -b, Article VIII of the Texas Constitution, that would authorize a county, city, town or junior
college district to establish an ad valorem tax freeze on residence homesteads of the disabled and of the
elderly and their spouses. On November 2, 2004, citizens approved the establishment of the tax
limitations described above. See "THE CERTIFICATES - Security for the Certificates" and "EFFECT
ON THE TAX RATE LIMITATION" in the body of the Official Statement.
Once the tax limitation is established, the total amount of ad valorem taxes imposed by the City
on a homestead that receives the exemption may not be increased while it remains the residence
homestead of that person or that person's spouse who is disabled or sixty-five years of age or older,
except to the extent the value of the homestead is increased by improvements other than repairs. If a
disabled or elderly person dies in a year in which the person received a residence homestead exemption,
the total amount of ad valorem taxes imposed on the homestead by the taxing unit may not be increased
while it remains the residence homestead of that person's surviving spouse if the spouse was fifty -five
years of age or older at the time of the person's death. In addition, the Texas Legislature by general law
may provide for the transfer of all or a proportionate amount of the tax limitation applicable to a person's
homestead to be transferred to the new homestead of such person if the person moves to a different
80250741.5
A -12
-283-
residence within the taxing unit. Once established, the governing body of the taxing unit may not repeal
or rescind the tax limitation.
80250741.5
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A -13
-284-
Assessed Valuations
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-285-
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Exemptions - Over 65 and Disabled Over 65 Exemptions
Tax Assessed Value Number of Assessed Value Average
Year Exemption(1) Exemptions of Exemptions Value
1999 550,000 16,004 5636,786,100 539,789
2000 50,000 16,255 668,199,827 41,107
2001 50,000 16,458 684,880,475 41,614
2002 50,000 16,602 713,508,103 42,977
2003 50,000 16,670 729,550,443 43,764
2004 50,000 16,770 747,885,037 44,597
2005 50,000 16,795 756,289,977 45,031
2006 50,000 16,963 774,757,868 45,673
2007 50,000 17,169 802,710,170 46,753
2008 50,000 17,255 805,583,221 46,687
Disabled Taxpayers Exemptions
Tax Assessed Value Number of Assessed Value Average
Year Exemption]') Exemptions of Exemptions Value
1999 550,000 2,535 593,292,702 536,802
2000 50,000 2,652 101,418,975 38,242
2001 50,000 2,765 108,303,281 39,169
2002 - - 50,000 2,880 115,715,191 40,179
2003 50,000 3,038 124,941,699 41,126
2004 50,000 3,270 136,391,738 41,710
2005 50,000 3,543 153,034,972 43,194
2006 50,000 3,859 169,483,323 43,907
2007 50,000 4,076 185,024,920 45,394
2008 50,000 4,292 194,747,769 45,375
Disabled Veterans Exemptions
Tax Assessed Value Number of Assessed Value Average
Year Exemption") Exemptions of Exemptions Value
1999 (3) 2,061 519,024,837 59,231
2000 131 2,092 19,290,426 9,221
2001 (3) 2,143 19,814,977 9,246
2002 U3 2,241 20,755,630 9,262
2003 (3) 2,404 22,271,738 9,264
2004 (3) 2,562 23,814,922 9,295
2005 (3) 2,675 24,676,048 9,225
2006 (3) 2,824 26,184,760 9,272
2007 (3) 2,997 27,828,172 9,285
2008 (3) 3,121 30,523,222 9,780
80250741.5 A -15
-286-
Exemption-Local Option
Tax
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Assessed Value
Exemption()
(4)
(4)
(4)
(9)
(4)
(4)
(4)
(4)
(4)
(4)
(3)
(4)
Number of
Exemptions
52,513
54,333
55,189
56,051
56,560
57,473
57,748
58,332
58,802
59,672
Assessed Value
of Exemptions
$366,149,406
392,740,809
414,770,371
434,924,406
467,542,416
503,873,807
540,248,333
584,117,044
669,143,866
704,460,740
Average
Value
$6,973
7,228
7,515
7,759
8,266
8,767
9,355
10,014
11,380
11,806
This exemption was granted pursuant to an election held on April 6, 1987, called upon petition of the voters of the City.
Beginning with tax year 1976, under provision of the Texas Constitution, the City must grant an exemption ranging from
$1,500 to $3,000 of assessed value of residential homesteads or personal property of disabled veterans who file for the
exemption based on a formula of the percent of disability claimed.
Starting in tax year 1996, the exemption increased in range. The new range is from $5,000 to $12,000 of assessed value.
Under provisions of a Constitutional Amendment, the City has the option of granting homestead exemption of up to 20% of
market value. Minimum exemption is $5,000. The City has granted 10% of market value or 55,000 exemptions,
whichever is greater. -
Tax Abatement
State law authorizes subdivisions of the State of Texas to grant tax abatements to any person,
organization or corporation in order to stimulate economic development within the State. Consequently,
the City Council has adopted a resolution establishing criteria whereby the City will, on a case -by -case
basis, give consideration to providing tax abatement to any qualifying applicant. Generally, the period of
abatement is for up to two years during the period of construction and for five years thereafter with a
maximum period not to exceed seven years. The percentage of tax abated shall be determined based upon
permanent jobs provided by the project as follows: 0% on 49 or less; 50% on 50 to 99; 75% on 100 to
199; 100% on over 200. Notwithstanding the resolution adopted by the City Council, or the criteria
attendant thereto, it is not implied or suggested that the City is under any obligation to provide tax
abatement to any applicant. As of January 1, 2008 the estimated value of property in the City that was
subject to tax abatement is $16,087,786.
Tax Rates and Limitations
The maximum tax rate
valuation. On April 3, 1993,
contained a tax limitation of $0.
The amended Charter provides
authorized after April 4, 1993.
The ad valorem tax rate
ordinance. Effective January
September 30 or the 60th day
indicates the tax rate distributio
80250741.5
permitted by the Constitution of Texas is $2.50 per $100 of assessed
the citizens of Corpus Christi voted to amend the City Charter which
68 per $100 of assessed valuation for all purposes including debt service.
for the tax rate to increase up to the State limit for voter approved debt
is levied each year by the City Council through the adoption of a tax rate
1, 2000, all taxing units must adopt their tax rates before the later of
after the taxing unit receives the appraisal roll. The following table
n for the past nine tax years and current tax year.
A -16
-287-
Tax Rate Distribution (per $100)
Tax Year General Fund Interest & Sinking Funds Total
1999 $0.468133 $0.155593 $0.623726
2000 0.463133 0.160593 0.623726
2001 0.457523 0.186652 0.644175
2002 0.460031 0.184144 0.644175
2003 0.466554 0.177621 0.644175
2004 0.460000 0.174175 0.634175
2005 0.426624 0.199175 0.625799
2006 0.403197 0.199175 0.602372
2007 0.364671 0.199175 0.563846
2008 0.364671 0.199175 0.563846
Truth -in- Taxation Limitation
Under Title 1 of the Texas Tax Code (known as the "Property Tax Code "), the City must annually
calculate and publicize its "effective tax rate" and `rollback tax rate ". A tax rate cannot be adopted by the
City Council that exceeds the lower of the rollback tax rate or the effective tax rate until two public
hearings are held on the proposed tax rate following a notice of such public hearings (including the
requirement that notice be posted on the City's website if the City owns, operates or controls an intemet
website and public be given by television if the City has free access to a television channel) and the City
Council has otherwise complied with the legal requirements for the adoption of such tax rate. If the
adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require than
an election be held to determine whether to reduce the tax rate adopted for the current year to the rollback
tax rate.
"Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this
year's total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of
last year's taxes and new values are not included in this year's taxable values.
"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax
levy (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this
year's debt service from this year's values (unadjusted) divided by the anticipated tax collection rate.
Levy and Collection of Taxes
The City has contracted for the collection of its property taxes with the Nueces County Tax
Assessor /Collector. In July or August of each year, the rate of' taxation is set by the City Council based
upon the valuation of property within the City as of January 1. Ad valorem taxes are due on receipt of a
tax bill and payable from October 1 of the year in which levied until January 31 of the following year
without interest or penalty. Split payments are not allowed. On February 1, the unpaid taxes become
delinquent and have a penalty and interest charge of seven (7 %) percent. Taxes delinquent from March 1
through June 30 have an additional penalty and interest charge of two (2 %) percent per month for a total
penalty and interest charge of fifteen (15 %) percent. Taxes delinquent on July 1 have a total penalty and
interest charge of eighteen (18 %) percent. Taxes delinquent on July 1 accrue an additional fifteen (15 %)
percent for collection cost of taxes. Unpaid taxes after July 31 accrue an additional interest charge of one
(1 %) percent per month until paid. The Property Tax Code makes provision for discounts for early
payment and the postponement of the delinquency date under certain circumstances. Fiscal year 1991 -92
80250741.5
A -17
-288-
was the last year the City granted a discount for early payment. The discounts were three (3 %) percent in
October, two (2 %) percent in November, and one (1 %) percent in December. For fiscal years after 1991-
92, the City did not offer discounts.
80250741.5
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A -18
-289-
Levy and Collection of Taxes
The following Table I sets forth a comparison of the net taxable assessed valuation, tax rate levy
and percentage of taxes collected for the past nine fiscal years. Table 11 sets forth a comparison of the tax
levies and also indicates the amount of uncollected delinquent taxes.
Table I
Tax Net Taxable Tax Year
Year Assessed Valuation Rate %Current % 01' Total Ending
1999 57,462,585,204 50.623726 96.3% 99.0% 7 -31 -00
2000 7,652,057,403 0.623726 96.2% 98.7% 7-31-01
2001 8,029,325,055 0.644175 96.1% 99.0% 7 -31 -02
2002 8,426,656,727 0.644175 96.1% 99.1% 7 -31 -03
2003 8,947,896,398 0.644175 96.1% 98.9% 7 -31 -04
2004 9,639,561,772 0.634175 96.3% 99.3% 7-31-05
2005 10,478,529,288 0.625799 96.0% 98.6% 7 -31 -06
2006 11,421,305,918 0.602372 95.2% 97.7% 7 -31 -07
2007 13,107,205,639 0.563846 94.4% 96.8% 7 -31 -08
Table II
Outstanding
Delinquent
Delinquent Outstanding Tax as Fiscal
Tax Net Current Current Tax Tax Total Tax Delinquent Percent of Year
Year Tax Levy Collections Collections Collections Tax Current Levy Ending
1999 846,546,084 $44,836,825 51,256,701 $46,093,526 $4,855,538 10.4% 7 -31 -00
2000 47,727,871 45,900,923 1,200,467 47,101,390 4,973,081 10.4% 7 -31 -01
2001 51,772,865 49,683,646 1,509,804 51,193,450 5,036,692 9.7% 7 -31 -02
2002 54,282,374 52,161,807 1,631,724 53,793,530 4,985,476 9.2% 7 -31 -03
2003 57,640,112 55,417,905 1,575,879 56,993,784 6,332,114 11.0% 7 -31 -04
2004 61,131,691 58,864,317 1,829,112 60,693,430 4,794,920 7.8% 7 -31 -05
2005 65,237,253 62,656,806 1,684,900 64,341,706 4,961,481 7.6% 7 -31 -06
2006 68,230,749 64,961,636 1,704,973 66,666,609 5,038,461 7.4% 7 -31 -07
2007 72,790,742 68,696,896 1,738,155 70,435,051 5,241,882 7.2% 7 -31 -08
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Principal M Valorem Taxpayers
The following table identifies the taxpayers in the City with the twenty largest assessed
2008 and their comparable 2007 assessed valuations where available.
Name of Taxpayer Type of Business
I American Electric Power Texas Central Co.
2 Markwest Javelina Pipeline Co
3 Padre Staples Mall, LP
4 H. E. Butt Grocery Company
5 SABCO Operating Company
6 AT &T
7 Bay Area Health Care
8 Wal -Mart Auto Center
9 Zohouri Developments Mustang Island LLC
10 TRT Development Company
I I Flint Hills Resources, LP
12 HD Development Properties LP
13 Sterling Energy Inc.
14 Camden Property Trust
15 Orion Drilling LP
16 Facey Enterprises NV, LTD
17 One Shoreline Properties LTD
18 Weingarten Realty Investors
19 Case Walnut Ridge Apartments LP
20 Coastal Drilling Co.
Electric Utility
Energy and Natural Gas
Commercial Properties
Retail Stores
Petroleum Company
Telephone Services
Hospital/Healthcare
Retail Stores
Commercial Properties
Commercial Properties
Petroleum Company
Commercial Properties
Power Plant Industry
Commercial Properties
Petroleum Company
Developer
Commercial Properties
Retail Stores
Commercial Properties
Petroleum Company
Percentage of Total to Tax Year 2008 Net Taxable Assessed Value
Source: Nueces County Appraisal District.
80250741.5
2008 Assessed Value
S 121,280,080
70,753,370
64,972,156
58,878,328
57,921,940
53,981,010
50,004,843
45,695,687
36,481,984
36,453,760
30,588,371
29,332,327
24,728,100
24,114,102
23,184,000
23,068,444
22,400,007
22,006,156
21,027,219
20,778,400
$ 837,650,284
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6.06%
valuations in
2007 Assessed Value
S 123,714,620
71,164,230
63,438,255
72,941,878
37,396,790
61,429,560
49,982,018
45,152,572
36,481,984
36,452,971
25,931,263
29,541,409
18,425,438
24,114,102
17,395,815
22,606,572
22,400,007
24,185,657
21,027,219
6 318 400
$ 810,100,760
FIVE YEAR OPERATING STATEMENT FOR SOLID WASTE
Revenues:
Solid Waste Services Refuse Collection Fees:
Residential
Commercial and Industrial
Municipal solid waste system service
charge
Refuse Disposal Charges
Disposal Charges - Landfill Project
Refuse Collection Permits
Special Debris Pickup
Recycling
Recycling containers
TNRCC -COG
Recovery of Charged Off Accounts
Miscellaneous
Total Solid Waste Revenues
Expenditures:
Solid Waste Office
J.C. Elliot Transfer Station
Refuse Collection
Refuse Disposal
Brush Collection
Recycling Collection
Cefe Valenzuela landfill operation
Cash for Trash
Landfill Regulation Compliance
Landfill Closure Costs
Total Solid Waste Expenditures
Excess of Revenues over Expenditures
(1)
2003 -04 2004 -05
$ 10,174,714
1,156,987
1,653,689
$ 11,268,019
1,217,445
1,705,416
8,185,917 8,499,872
8,654
21,545 22,358
210,527 206,218
3,529 1,512
79,075
58,283
$ 23,066,852
1,041
28,079
$ 21,436,028
1,194,920
6,149,445
4,985,777
1,973,950
1,033,260
26,851
1,291,851
6,133,245
5,577,891
1,957,596
1,043,811
62,021
2005 -06
$ 12,379,693
1,508,399
1,986,343
7,942,373
21,169
290,443
22,123
36,940
46
$ 24,187,529
1,199,292
6,246,501
5,307,198
2,043,769
1,000,110
600
2006 -07
$ 12,882,495
1,598,798
2,532,257
9,211,095
3,685
21,508
277,535
49,923
52,135
13,089
$ 26,641,520
1,070,526
5,113
6,010,021
8,242,844
2,195,561
1,036,377
142,070
1,860
2007 -08(2)
$ 13,470,958
1,626,584
3,363,150
10,880,292
21,018
259,188
60,465
45,599
10
$ 29,727,264
1,044,068
1,101,656
8,735,599
8,122,709
2,470,849
1,042,570
786,722
$ 15,364,203 $ 16,066,415 $ 15,797,470 $ 18,704,372 $ 23,304,173
$ 6,071,825 $ 7,000,437 $ 8,390,059 $ 7,937,148 $ 6,423,091
Since Solid Waste is a General Fund department, this transfer is not reflected as a departmental expenditure in the
Comprehensive Annual Finance Report due to Generally Accepted Accounting Principles (GAAP).
(2) Unaudited
NOTE: "Refuse Disposal" expenditures include an annual transfer to debt service for landfill improvements.
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THE TAX INCREMENT FINANCING ACT
General Information
On November 3, 1981, the voters of the State of Texas approved a constitutional amendment
empowering the legislature to authorize by general law the issuance of bonds or notes by incorporated
cities or towns to finance the development or redevelopment of an unproductive, underdeveloped, or
blighted area within the city or town and to pledge for repayment of those bonds or notes increases in ad
valorem tax revenue imposed on property in the area of the city or town and other political subdivisions.
In anticipation of the adoption of the constitutional amendment, the Legislature, in 1981, adopted the
Texas Tax Increment Financing Act of 1981 which is currently codified in Chapter 311 of the Texas Tax
Code (the "Act "). The Act has been upheld through court challenge.
The assessed value of property in a reinvestment zone at the time of the creation of the zone
constitutes the base value as to all political subdivisions exercising taxing power within the reinvestment
zone. Tax receipts from all such political subdivisions received as a result of increased assessed values
over the base value (the tax increment) are placed in the tax increment fund and may be used to pay for
capital improvements or to pay tax increment bonds or notes.
Corpus Christi Reinvestment Zones
On December 29, 1982, the City Council of the City designated a portion of the City as a
reinvestment zone pursuant to the Act. This area, officially designated as Corpus Christi Reinvestment
Zone No. 1 ( "Zone No. 1") generally includes the Bayfront area in and along the central business district
south to approximately Ayers Street. This area has been the subject of an intensive study by City staff
leading to the preparation of the "Bayfront Plan." After a staged review and adoption process by the
Corpus Christi Planning Commission and City Council, the Bayfront Plan was officially adopted on
December 29, 1982.
The Act provides that the City and each other taxing unit may share in the tax increment
allocation so long as the sharing basis is established by contract prior to the designation of the area as a
reinvestment zone. The City, acting on behalf of Zone No. 1, entered into contracts with the City of
Corpus Christi, the Corpus Christi Junior College District, Nueces County, Nueces County Hospital
District, and the Corpus Christi Independent School District prior to passage of the reinvestment zone
ordinance on December 29, 1982. These contracts established the basis for the participation of each
taxing unit in the tax increment allocation. Zone No. 1 was divided into subzones A and B with a tax
increment sharing plan established for each subzone. In subzone A, Zone No. 1 receives only the tax
increment resulting from increases in assessed value due to new construction (any construction which
increases values by twenty-five (25 %) percent) from the tax rates of the City and County, excluding the
Hospital District, the Junior College District, and the School District. Subzone B is divided into areas 131
and B2. In area 131, Zone No. I receives only the tax increment resulting from increases in assessed value
due to new construction on unimproved properties from all participating governmental entities. In area
B2, Zone No. 1 receives the tax increment resulting from appreciation on improved properties (those
properties for which improvements were in place as of January 1, 1982) and all tax increment resulting
from increases in assessed value due to new construction from all participating governmental entities. All
participating govemmental entities receive taxes on the base values (assessed values as of January 1,
1982), the appreciation on unimproved properties, and the value of the appreciation on new construction.
In accordance with the terms of the ordinance approved by the City when Zone No. 1 was
created, Zone No. 1 was terminated on March 1, 2004.
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On November 14, 2000, the City Council passed an ordinance creating the Corpus Christi
Reinvestment Zone No. 2 ( "Zone No. 2 ") encompassing approximately 1,934 acres on North Padre
Island. The preliminary plan calls for funding the local share of the reopening of a channel to the Gulf of
Mexico, Packery Channel, along with beach restoration in front of the Padre Island seawall and related
improvements. Nueces County, the Nueces County Hospital District, and Del Mar College (formerly
Corpus Christi Junior College) have agreed to participate in Zone No. 2. Pursuant to rights reserved to
and exercised by the citizens of the City in its Charter, a referendum petition was filed to require an
election on whether to repeal the City's ordinance adopted on November 14, 2000. In response to the
petition, the City Council called an election on repeal of this ordinance for April 7, 2001. At this election
the citizens voted not to repeal the November 14, 2000 ordinance. In 2003, $5,000,000 in bonds were
issued, in 2004 $4,100,000 in bonds and in 2006 $2,900,000 in bonds were issued and in 2006 $2,900,000
in bonds were issued by the North Padre Island Development Corporation, a non -profit corporation
created by the City for the purpose of issuing bonds in furtherance of the development of Zone No. 2. In
March 2008, the Corporation issued $13,445,000 in refunding bonds, refinancing all of the previously
issued bonds, to generate a debt service savings.
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Reinvestment Zone Ad Valorem Taxes
The following table sets forth the net taxable assessed values (assessed value net of exemptions)
in Zone No. 2 for Fiscal Year 2007 -2008 and the related levy. The Corporation issued an additional
$2,900,000 in 2006 to complete the $12,000,000 authorized amount. In 2008 the Corporation issued
refunding bonds for the full amount of the bonds.
Reinvestment Zone No. 2
Entity
Nueces County
Farm to Market
Hospital District
City of Corpus Christi
College a)
Gross
Appraised
Value
Current
Taxable
Value
5360,853,525 5343,088,485
360,853,525 342,830,485
360,853,525 343,088,485
360,853,525 345,798,617
360,853,525 347,016,857
Jurisdiction
Taxable
Value
$ 81,842,393
81,691,196
81,842,393
82,623,919
82,818,649
Jurisdiction
Levy
$ 287,580
3,509
118,493
465,872
457,096
$ 1,332,549
TIF
Taxable
Value
5262,544,228
262,425,763
262,544,228
264,035,347
264,986,011
TIF
Levy
$ 922,535
11,270
380,117
1,488,753
384,901
$ 3,187,576
01 Starting in Tax Year 2007, College District contributes a reduced percentage (60 %) to Reinvestment
Zone No. 2.
The Texas State Aquarium
In 1996, the City issued $4,400,000 in Combination Tax and Texas State Aquarium Revenue
Certificates of Obligation, the proceeds of which were used to purchase land, improvements, and capital
equipment owned by the Aquarium and to build exhibits at the Aquarium which are deemed essential to
continue to attract visitors. The debt service on these obligations are payable from revenues pursuant to
the Contract between the City and the Association. The revenues identified under the heading "Operating
Revenues - Admissions" in the following table are being made available to the City under a Contract with
the Association, dated February 27, 1996, on a "gross revenue" basis. The contribution of such revenues
may have an affect on the ability of the City or the Association to pay operating costs of the Aquarium
exclusively from revenues generated from the use of the Aquarium. To the extent such revenues are not
sufficient to pay debt service due and owing on these obligations, these obligations additionally are
payable from a pledge of ad valorem taxes to be levied by the City.
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APPENDIX B
CERTAIN INFORMATION RELATING TO THE CITY OF CORPUS CHRISTI
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The following information has been provided by the City from sources it believes to be reliable.
Information contained herein regarding industries and other private institutions in the Corpus Christi area
are for general background purposes only.
INFORMATION CONCERNING THE CITY OF CORPUS CHRISTI
Population and Location
Corpus Christi is now the eighth largest city in the State of Texas with a population of 295,594 based on
the City's revised 2008 estimate. The geographic location of the City on the Gulf of Mexico and the
Intercoastal Waterway gives it one of the most strategic locations in the Southwest and has been
important to its economic development.
Additional general information concerning the City's population and economy can be found under the
caption "Economic and Demographic Characteristics" in the City's financial information contained in
Appendix C.
Area
The area of the City has increased through annexation as the City's population and industry grew. The
City has had numerous annexations and now contains approximately 504 square miles, which is broken
down to approximately 150 square miles of land and 354 square miles of water. While the area covered
by water contains no population and does not require normal city services, it does produce considerable
revenues from oil and gas properties located therein.
Form of Government and Administration
The City was incorporated in 1852. In 1909, the City was organized under a City Charter and operated as
a general law city until 1926 when a Home Rule Charter with a commission form of government was
adopted. The Charter was amended in 1945 and the present Council - Manager form of government was
adopted.
The City Council consists of the Mayor and eight Council Members elected for two year terms. The
Mayor and three Council Members are elected at large and five Council Members from single member
districts. These nine officials are listed elsewhere in this document.
The City Manager is appointed by the City Council and is the Chief Administrative and Executive Officer
of the City. The Director of Financial Services is appointed by the City Manager and is charged with the
administration of fiscal affairs of the City.
By an initiative submitted in accordance with provisions of the City Charter, on November 5, 2002, the
voters in the City considered a proposition that would have amended the City Charter to make the Mayor
of the City the chief administrative and executive officer of the City. The citizens of the City voted to
reject this proposed amendment to the City Charter.
The City Council fixes the annual tax rate based on a budget prepared under the direction of the City
Manager.
The names, years of services, experience, and background of certain appointed officials are as follows:
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Management
George K. Noe, City Manager
George K. Noe was appointed City Manager in April 2003 and previously served as the Deputy City
Manager since October 1999. In that role, he was responsible for day -to -day operations of the City
including the direct supervision of the Human Resources Department, E Government Services
Department, Municipal Information Systems Department, Office of Management and Budget, and
Convention Facilities Department as well as the supervision of the three Assistant City Managers. He
was also responsible for management of major projects and oversees the City's team in collective
bargaining with the police and fire employee groups. Prior to his appointment, Mr. Noe served as the
City Manager of College Station, Texas for over four years. Mr. Noe's 24 year city management career
also includes fourteen years service with the City of San Antonio, Texas, three years as City Manager in
Kingsville, Texas, and three years as Deputy City Manager in Fort Collins, Colorado. Mr. Noe has a
Bachelor of Arts degree from St. Mary's University in San Antonio, Texas. He also participated in the
public sector labor relations training program sponsored by the U.S. Conference of Mayor's Labor
Management Relations Service. Mr. Noe will step down on September 1, 2008. Angel Escobar will serve
as Interim City Manager until a replacement is hired. The City Council is working a consultant on a
nationwide search for its next city manager and expects to hire a new city manager within the next 90
days.
Oscar Martinez, Assistant City Manager
Oscar Martinez was appointed Assistant City Manager for Administrative Services in October 2004. As
Assistant City Manager he is responsible for overseeing the Finance, Budget, Information Systems,
Human Resources General Services, E- Government and Economic Development Departments. Mr.
Martinez previously served as Assistant Budget Director for the City in the mid 1980's. Prior to his
recent employment with the City, he served over 14 years in workforce development as President/CEO of
Work -Force 1, President/CEO of Workforce Network, Inc., Director at the Greater Corpus Christi
Business Alliance, and Vice President of Workforce Development Corporation. Mr. Martinez has also
been a teacher for the Corpus Christi ISD as well as the Dallas ISD. Mr. Martinez has a Master of Arts in
Public Administration from St. Mary's University in San Antonio, Texas and a Bachelor of Arts in
Political Science /Business Administration from Texas A &I University in Kingsville, Texas. He has
served on several Boards including the United Way, Committee on Educational Excellence, Corpus
Christi Chamber of Commerce Education and Workforce Committee, Coastal Bend American Red Cross,
Equality in Education Council, Corpus Christi, Technical Education Advisory Council, and the Human
Investment System Council.
Margie C. Rose, Assistant City Manager
Margie C. Rose was appointed Assistant City Manager for Development Services in April 2002, having
previously worked in local government for more than 20 years. Ms. Rose is responsible for the
departments of Development Services, Convention Facilities, Health, Human Relations, Neighborhood
Services and Park and Recreation, Libraries and Museum.
In her prior positions, Ms. Rose served as Purchasing Director, Director of Administrative Services,
Director of Department of Public Services, Assistant City Manager and City Manager for the City of
Inkster, Michigan. She also served as Deputy Director of Parks for the County of Wayne, Michigan. Ms.
Rose served on various professional committees including the Michigan Municipal League Finance and
Taxation Committee, International City /County Management Planning Committee and the Michigan City
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Management Workplace Diversity Committee. Ms. Rose received her BBA (Accounting) degree in 1984
and her MPA in 1991, both from Eastern Michigan University.
Robert J. Nix, Jr., Assistant City Manager
Robert J. Nix, Jr., was appointed Assistant City Manager for Development Services on September 6,
2007, having previously worked in local government for more than 30 years. Mr. Nix is responsible for
the department of Development Services. In this position, he oversees all planning, development, and
permitting activities for the City of Corpus Christi. In his previous positions, Mr. Nix served in a variety
of governmental organizations including St. Lucie County, Florida, City of Deltona, Florida, and Jackson
County, Florida. Mr. Nix received his Master of Science degree from Florida State University.
Cindy O'Brien, Director of Financial Services
Cindy O'Brien was appointed as Director of Financial Services in December 2003, after serving in the
Office of Management and Budget for two years. There, she served, first as Assistant Director, then
Acting Director before her current appointment. As Director of Financial Services, she is responsible for
all areas of financial management, including financial reporting, accounting, treasury, revenue and
collections, purchasing, and the utility business office which includes billing, field services, and customer
services.
Prior to her position in Management and Budget, Ms. O'Brien served for over seventeen years in the
Finance Department, holding various positions, including Chief Accountant. Ms. O'Brien is a Certified
Public Accountant and holds a B.B.A. degree from Sam Houston State University, where she majored in
Accounting. She is a member of the Government Finance Officers Association, national and state
organizations, as well as the Government Treasurers Organization of Texas.
Certain Governmental Services Provided by the City
Public Safety ... The City provides police protection, fire protection, building inspection, street lighting
and traffic signals, and civil defense. Law enforcement and civil defense is provided through the Police
Department. The City's Fire Department operates 16 fire stations throughout the City and the Emergency
Medical Service.
Public Services ... In addition to operating its water, wastewater disposal, and gas systems, the City also
provides garbage collection and disposal and maintenance of streets and storm drainage areas.
Community Enrichment ... The City has a main library and four branches which are equipped with
over 413,308 volumes. The City owns and maintains approximately 190 parks containing over 1,581
acres. The City also owns extensive recreational facilities including 139 playgrounds, a marina with 580
yacht basin slips, 4 municipal beaches, 2 public golf courses, 10 swimming pools, 49 tennis courts, a
number of baseball and softball diamonds, 5 recreational centers, and 8 senior citizen centers. In addition,
the City owns an auditorium, a coliseum, Harbor Playhouse, the Corpus Christi Museum, the
Multicultural Center, the Water Garden, and a Community Convention facility.
Airport and Transit System ... The City owns the Corpus Christi International Airport situated on
2,428 acres. The Regional Transportation Authority operates the regional transportation system which
provides passenger bus and paratransit service within the area and seasonal services including a passenger
ferry connecting several tourist attractions.
Health ... The City maintains preventive health services through health facilities within the community.
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The City does not have the responsibility of maintaining hospitals, a school system, or a higher education
system, and does not expend any funds in providing welfare.
THE CITY'S FINANCIAL PROCEDURES
Audit and Financial Reporting
The City Charter requires an annual audit to be made of the books of accounts, records, and transactions
of the City by a Certified Public Accountant. The fiscal year of the City begins the first day of August of
each year and ends with the thirty -first day of July of the following year. The Government Finance
Officers Association of the United States (the "GFOA ") first awarded the City its Certificate of
Conformance, later termed the Certificate of Achievement for Excellence in Financial Reporting, for its
annual financial report for 1957. The City was awarded the same recognition for its 1970, 1975, 1978,
1979, 1983, and 1984 through 2007 financial reports.
Budget Procedures
State laws and the City Charter require the preparation and filing of an annual budget. The City Manager
submits a proposed budget to the City Council at least sixty days prior to the beginning of the fiscal year
which estimates revenues and expenses for the next year. The proposed expenditures will not exceed
estimated revenues. The City Council shall adopt a balanced budget prior to the beginning of the fiscal
year. If the City Council fails to adopt a budget by the beginning of the fiscal year, the amounts
appropriated for current operations for the current fiscal year are deemed the adopted budget for the
ensuing fiscal year on a month- to-month basis until such time as the City Council adopts a budget for the
ensuing year.
Significant Accounting Policies
The City prepares its financial statements in accordance with the generally accepted accounting principles
for local governmental units as prescribed by the Governmental Accounting Standards Board and the
American Institute of Certified Public Accountants. A summary of significant accounting policies of the
City are set out in the Notes to Financial Statements for the fiscal year ended July 31, 2007 located
referenced elsewhere in the financial section of the Official Statement.
Population
The revised 2000 United States Census population for Corpus Christi is 277,454, which is approximately
eight percent greater than the population reported in 1990. The table shows the history of population from
1920 to 2000:
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Population Percent of Increase Over
United States Census Figures for 1920 - 1990 Preceding Census
1920 10,522 27%
1930 27,541 162%
1940 57,301 108%
1950 108,053 89%
1960 167,690 55%
1970 204,525 22%
1980 232,134 13%
1990 257,543 11%
2000 277,454 8%
Corpus Christi Standard Metropolitan Statistical Area (SMSA) consists of Nueces and San Patricio
Counties, and, according to the 2000 United States Census, had a population of 380,783. It is estimated
that the population in the SMSA will exceed 403,000 in the next ten years.
Trade Area and Location
Corpus Christi's trade area consists of five counties, Nueces, San Patricio, Aransas, Jim Wells, and
Kleberg. Each of the counties maintains a solid and diversified economic base which contributes material
support to Corpus Christi due to its location as a trade center and shipping point.
The land is generally flat with strong mineral deposits, rich soil, excellent climate, and a growing season
of approximately 300 days. Grain sorghum and cotton are the principal agricultural crops. The region
also has a strong supply of' livestock including beef, dairy cattle, hogs, and poultry.
The oil and gas industry is a major factor in the growth and economic stability within the trade area.
Mineral values vary depending on world market and demand. This industry also provides a secondary
market for petro by- products and chemicals.
The trade area's principal outlet for agricultural and petroleum products is the Port of Corpus Christi,
which has served the area for over seventy years. The rebuilt grain elevator, completed in 1983, has
added to the Port's capacity to handle various agricultural products. In 2004, the Port handled a volume
of 86.4 million tons of cargo, including 74.2 million tons of petroleum products.
Corpus Christi has one of the most strategically located waterways in the Southwest, with deep water
transportation to the Gulf of Mexico and barge traffic all along the Texas Coast via the Intracoastal
waterway. The nearest other port is in Brownsville, 160 miles to the south; nearest retail and wholesale
outlet is San Antonio, 145 miles to the northwest; and the nearest heavy industry competition is Houston,
210 miles to the northeast.
Business
Corpus Christi continues to grow as a regional center for a 12- county area. Several new businesses were
attracted to the City in the past year, including Graduate Loan Services, a financial call center, Gateway
Shipping, a stevedore company, and Combex Westhem LLC, a modular home manufacturer. The Padre
Island Drive shopping corridor also added a number of new restaurants and other retail businesses. Retail
sales grew by 9.8% as measured by sales subject to sales tax.
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Recent capital investments underway by the public and not - for - profit sectors is estimated at $488 million,
while private investments topped $1 billion. Most recently, Toyota has announced its intention to
construct a major international auto manufacturing center in south San Antonio, Texas, a short distance
away from Corpus Christi. This facility may have use for the Port of Corpus Christi facilities, thus
having the effect, if so used, of contributing to the local economy.
Several major construction and transportation projects are in various stages of planning or construction.
A $46 million airport renovation project has been completed. The Texas Department of Transportation
has two projects under construction. The $45 million elevation of the JFK Causeway, of which the City
is funding $4 million, will provide a safe evacuation route from Padre and Mustang Islands and provide
environmental benefits. The $36 million current phase of the extension of the Crosstown Expressway
will connect Downtown and the Southside of town with a continuous freeway. A 530 million project on
Padre island will re -open Packery Channel, creating a route for pleasure and fishing boats between the
Laguna Madre and the Gulf of Mexico. A large tourist development of condos, restaurants, and retail
establishments is in the planning phase. The City's portion of the cost of dredging Packery Channel is
funded through Tax Increment Financing.
The Texas State Aquarium has recently concluded a $14 million expansion which allows exhibition of
dolphins that cannot be retumed to their natural habitat. A $30 million multipurpose arena to be
constructed by the City in the downtown area opened in November 2004. Whataburger Field, a newly
opened baseball stadium, that houses a AA major league affiliate baseball team was opened on April 17,
2005.
Industry
Corpus Christi industry provides a diversified product market including metal fabrication, chemical
processing, farm and ranch equipment, oil field equipment, cement, food processing, electronic,
petrochemical products, fishing and seafood products and more. The diversification is primarily due to the
commitment of City leadership.
The Port of Corpus Christi Authority opened the area to world markets in 1926. Today, it is the seventh
largest port in the United States. The Port's channel stretches over 30 miles and links the City of Corpus
Christi with the Gulf of Mexico. Deeper channels have for decades allowed Corpus Christi to be a
competitive port for bulk commodities requiring large, deep draft vessels. It is the terminus of network of
oil and gas pipelines throughout Southwest Texas and extending into West Texas. The Authority has two
major projects, the Joe Fulton International Trade Corridor and the Channel Improvement Project, that
will require significant funding in the future. These projects will be funded from federal and state
assistance, revenue bonds and the Authority's unrestricted net assets.
Joe Fulton International Trade Corridor
This corridor encompasses an 11.5 -mile road and rail project that will significantly improve access to
more than 2,000 acres of land along the North side of the channel for existing and future development.
The corridor will connect two major highway components- US Highway 181 and Interstate Highway 37 -
thus, establishing efficient intermodal links between highway, marine, and rail transportation systems.
Most important, it is anticipated that the corridor will generate future economic development
opportunities for South Texas.
Construction began in 2004 and is scheduled for completion in 2008. At the end of 2005 this project was
over 50% complete. Total project costs are estimated at $55.8 million.
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Channel Impro vemen t Project
In 2003, the Authority completed the feasibility phase of the Channel Improvement Project and is
currently awaiting authorization through the Water Resources Development Act (WRDA) to begin the
project. The project will include deepening the Corpus Christi Ship Channel from 45 to 52 foot, adding
barge shelves on both sides of the ship channel and extending the La Quinta Channel to serve the
proposed La Quinta Trade Gateway project. Although the project is still pending WRDA authorization,
the engineering and design phase is underway and costs are shared 25% from the Authority and 75% from
federal funds. Upon authorization of the project, the improvements will be constructed in seven contracts
beginning in 2007 and ending in 2013. Total improvements will cost approximately $150 million.
The Port is constantly upgrading and expanding facilities to better serve south Texas industry and
shippers. In 2005, major capital expenditures include Gulf Compress Cotton Warehouses, Joe Fulton
International Trade Corridor, security enhancements, vessel traffic information system, waterfront site
development, water taxi and southside military Rail Yard for a total of $37,898,615.
Tourism and Convention Business
Corpus Christi continues to be a favorite vacation spot for visitors, as reflected by the ranking of the sixth
most popular tourist destination in Texas. Nearly seven million visitors visited Corpus Christi during the
two year period 2003 -2004 spending on the average, approximately $97 per person per day. Visitors
stayed longer in Corpus Christi than in other areas of the State - an average of 2.3 days in Corpus Christi
compared to 2.1 days in all of Texas. The number one reason visitors flock to the area has always been to
enjoy miles of blazing white beaches along Mustang and Padre Islands, the longest barrier island in nature
fronting on the Gulf of Mexico. The opposite side of the barrier provides a shoreline for Corpus Christi
Bay, Laguna Madre, and the various bays and bayous north of the Coastal Bend which is ideal for outdoor
recreation.
Tourist facilities located within the City include: a multi- purpose arena at the American Bank Center,
Whataburger Field which houses a AA major league affiliate baseball team, the Texas State Aquarium,
the USS Lexington Museum, the Museum of Science and History, the South Texas Art Museum, the
Asian Cultures Museum, the Multicultural Center/Heritage Park complex, and the Concrete Street
Amphitheater. The Corpus Christi area is also a renowned location for water sports, including
windsurfing and kiteboarding, and serves as a host to the annual U.S. Open Windsurfing Regatta and
international power and sail boat races.
International Flavor
The City of Corpus Christi is a member of Sister Cities International. Through Sister Cities International,
Corpus Christi has established affiliations with Keelung, Taiwan; Veracruz, Mexico; Yokosuka, Japan;
Agen, France; and Toledo, Spain. The City and nearby neighbor, Monterrey, Mexico, have established a
Partner in Trade affiliation that emphasizes business and cultural opportunities for cooperative ventures.
Yokosuka, Japan sends up and coming city employees to Corpus Christi for overseas' training in public
service and an exchange that teaches the different facets of volunteerism in Japan. In addition to
establishing a "Partner in Trade" with Monterrey, the City has established closer ties with cousins in 23
countries including Austria, Belgium France, Spain, Italy, and others.
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Proximity to San Antonio
Corpus Christi continues to benefit from tourist attractions in San Antonio. San Antonio is located 2.5
hours by automobile north of Corpus Christi with easy access by Interstate 37, and Corpus Christi is
favorably viewed as an attractive one -day trip by San Antonio visitors. With Corpus Christi's growing
list of attractions, which include the Texas State Aquarium, the U.S.S. Lexington Museum on the Bay,
and the Las Carabelas Columbus ship exhibit, visitors may be tempted to stay a little longer.
Foreign Trade Zone
The Port of Corpus Christi Authority operates one of the largest Foreign -Trade Zones (FTZ) in the United
States. The Zone includes an Industrial Park near the Airport, two full service public warehouses near the
Airport, all Port properties (7,000) acres that are available for storage and /or industrial activity, three bulk
fuel terminals, six refinery subzones, two metal fabrication (offshore oil platforms and towers) subzones,
and two minerals processing subzones. The Port's FTZ department is a full service Grantee assisting
clients with applications, FTZ training, interpretation of Customs regulations, and interface with Customs
officials.
Corpus Christi Enterprise Zone
The City of Corpus Christi has a State of Texas approved Enterprise Zone to assist in economic
development activities. The Enterprise Zone contains approximately 14 square miles. In the 8 -year
existence of the Enterprise Zone, over $2.5 billion of State of Texas approved Enterprise Zones projects
have begun within the Enterprise Zone. While numerous State benefits for companies locating in the
Enterprise Zone are available, the City also provides incentives for companies locating within the
Enterprise Zone.
Private Utilities
Telecommunications and electrical service are available from several providers.
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Construction
The Table below indicates the amount of new construction activity in Corpus Christi and the number of
permits issued for all purposes.
Building Permits
Year Number of Permits Value
1998 -1999 5,984 142,154,244
1999 -2000 5,845 152,987,779
2000 -2001 4,761 149,264,763
2001 -2002 5,207 154,763,863
2002 -2003 4,565 333,016,51710
2003 -2004 4,012 295,084,882
2004 -2005 5,781 387,122,147
2005 -2006 5,989 450,750,242
2006 -2007 5,693 503,027,247
2007 -2008 5,118 343,865,608
°t Based upon the construction of several large commercial projects, including shopping malls.
Employment
The following table indicates the total civilian employment in the Corpus Christi MSA for the period
January 2006 as compared to the prior periods of December 2005 and January 2005:
January 2008* December 2007 January 2007
Civilian Labor Force
Unemployment
Percent Unemployment
Total Employment
197,303
9,374
4.8%
187,929
197,300
8,667
4.4%
186,633
197,499
9,698
4.9%
187,801
The following table shows certain nonagricultural wage and salary employment in the Corpus Christi
MSA for the period January 2006 as compared to the prior periods of December 2005 and January 2005:
Natural Resource & Mining
Manufacturing
Wholesale Trade
Retail Trade
Transportation, Warehouse & Public Utilities
Information
Financial Activities
Professional & Business Services
Education & Health Services
Leisure & Hospitality
Other Services
Govemment
Total
*Estimates for the current month are preliminary
January 2008*
20,700
10,900
5,700
20,700
5,300
2,500
8,100
15,800
26,700
20,400
6,200
32,100
175,100
December 2007
20,900
11,000
5,700
21,600
5,300
2,400
8,300
16,000
26,900
20,600
6,300
32,500
177,500
Source: Texas Workforce Commission, Labor Market Review, February 2006.
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January 2007
19,000
10,900
5,400
20,100
5,500
2,500
8,000
16,300
26,100
19,400
6,200
32,900
172,300
80250741.5
APPENDIX C
The information contained in this appendix consists of certain audited
FINANCIAL STATEMENTS OF THE CITY OF CORPUS CHRISTI, TEXAS
FOR THE FISCAL YEAR ENDED JULY 31, 2007.
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APPENDIX D
OPINION OF BOND COUNSEL
Proposed Form of Opinion of Bond Counsel
An opinion in substantially the following form will be delivered by
McCall, Parkhurst & Horton L.L.P., Bond Counsel,
upon the delivery of the Certificates of Obligation,
assuming no material changes in facts or law.
CITY OF CORPUS CHRISTI, TEXAS
COMBINATION TAX AND SOLID WASTE REVENUE
CERTIFICATES OF OBLIGATION, SERIES 2008,
IN THE PRINCIPAL AMOUNT OF $12,000.000
AS BOND COUNSEL for the City of Corpus Christi, Texas (the "City "), the issuer of the
certificates of obligation described above (the "Certificates "), we have examined into the legality and
validity of the Certificates, which Certificates are issued in the aggregate principal amount of
$12,000,000. The Certificates bear interest from the date and mature on the dates specified on the face of
the Certificates, and are subject to redemption prior to maturity on the dates and in the manner specified
on the face of the Certificates, all in accordance with the ordinance of the City authorizing the issuance of
the Certificates (the "Ordinance "). Terms used herein and not otherwise defined shall have the meaning
given in the Ordinance.
WE HAVE EXAMINED the applicable and pertinent provisions of the Constitution and laws of
the State of Texas, and a transcript of certified proceedings of the City, and other pertinent instruments
authorizing and relating to the issuance of the Certificates of Obligation, including one of the executed
Certificates of Obligation (Certificate of Obligation No. R -1); however, we express no opinion with
respect to any statement of insurance printed on the Certificates of Obligation.
BASED ON SAID EXAMINATION, IT IS OUR OPINION that the Certificates of Obligation
have been authorized, issued and delivered in accordance with law, and constitute valid and legally
binding obligations of the City; that the interest on and principal of the Certificates of Obligation shall be
payable from the proceeds of an ad valorem tax levied and pledged for such purpose, within the limit
prescribed by law; and that the principal of and interest on the Certificates of Obligation are additionally
secured by and payable from a pledge of the surplus revenues from the operation of the City's solid waste
system remaining after payment of all operation and maintenance expenses thereof and any other
obligations heretofore or hereafter incurred to which such revenues have been or shall be encumbered by
a lien on and pledge of such revenues superior to the lien on and pledge of such revenues to the
Certificates of Obligation. The opinion hereinbefore expressed is qualified to the extent that the
obligations of the City, and the enforceability thereof, are subject to applicable bankruptcy, reorganization
or similar laws relating to or affecting creditors' rights generally, and the exercise of judicial discretion in
accordance with general principles of equity.
IT IS FURTHER OUR OPINION, except as discussed below, that the interest on the Certificates
is excludable from the gross income of the owners for federal income tax purposes under the statutes,
regulations, published rulings, and court decisions existing on the date of this opinion. We are further of
the opinion that the Certificates are not "specified private activity bonds" and that, accordingly, interest
on the Certificates will not be included as an individual or corporate alternative minimum tax preference
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item under section 57(a)(5) of the Internal Revenue Code of 1986 (the "Code "). In expressing the
aforementioned opinions, we have relied on, certain representations, the accuracy of which we have not
independently verified, and assume compliance with certain covenants, regarding the use and investment
of the proceeds of the Certificates and the use of the property financed therewith. We call your attention
to the fact that if such representations are determined to be inaccurate or upon a failure by the City to
comply with such covenants, interest on the Certificates may become includable in gross income
retroactively to the date of issuance of the Certificates.
EXCEPT AS STATED ABOVE, we express no opinion as to any other federal, state, or local tax
consequences of acquiring, carrying, owning, or disposing of the Certificates.
WE CALL YOUR ATTENTION TO THE FACT that the interest on tax- exempt obligations,
such as the Certificates, is included in a corporation's alternative minimum taxable income for purposes
of determining the alternative minimum tax imposed on corporations by section 55 of the Code.
WE EXPRESS NO OPINION as to any insurance policies issued with respect to the payments
due for the principal of and interest on the Certificates, nor as to any such insurance policies issued in the
future.
OUR SOLE ENGAGEMENT in connection with the issuance of the Certificates is as Bond
Counsel for the City, and, in that capacity, we have been engaged by the City for the sole purpose of
rendering an opinion with respect to the legality and validity of the Certificates under the Constitution and
laws of the State of Texas, and with respect to the exclusion from gross income of the interest on the
Certificates for federal income tax purposes, and for no other reason or purpose. The foregoing opinions
represent our legal judgment based upon a review of existing legal authorities that we deem relevant to
render such opinions and are not a guarantee of a result. We have not been requested to investigate or
verify, and have not independently investigated or verified any records, data, or other material relating to
the financial condition or capabilities of the City, or the disclosure thereof in connection with the sale of
the Certificates, and have not assumed any responsibility with respect thereto. We express no opinion and
make no comment with respect to the marketability of the Certificates and have relied solely on
certificates executed by officials of the City as to the current outstanding indebtedness of the City, the
assessed valuation of taxable property within the City, and the revenues of the City additionally pledged
to the payment of the Certificates. Our role in connection with the City's Official Statement prepared for
use in connection with the sale of the Certificates has been limited as described therein.
OUR OPINIONS ARE BASED ON EXISTING LAW, which is subject to change. Such
opinions are further based on our knowledge of facts as of the date hereof. We assume no duty to update
or supplement our opinions to reflect any facts or circumstances that may thereafter come to our attention
or to reflect any changes in any law that may thereafter occur or become effective. Moreover, our
opinions are not a guarantee of result and are not binding on the Internal Revenue Service (the "Service ");
rather, such opinions represent our legal judgment based upon our review of existing law and in reliance
upon the representations and covenants referenced above that we deem relevant to such opinions. The
Service has an ongoing audit program to determine compliance with rules that relate to whether interest
on state or local obligations is includable in gross income for federal income tax purposes. No assurance
can be given whether the Service will commence an audit of the Certificates. If an audit is commenced,
in accordance with its current published procedures the Service is likely to treat the City as the taxpayer.
We observe that the City has covenanted not to take any action, or omit to take any action within its
control, that if taken or omitted, respectively, may result in the treatment of interest on the Certificates as
includable in gross income for federal income tax purposes.
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Respectfully,
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M. E. ALLISON Be. CO., INC.
950 East Basse Road, Second Floor
San Antonio, Texas 78209
Financial Advisor
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wy
City of
Corpus
Christi
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