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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. -2- 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 —7— 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. -8- 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: -9- 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 • -1 0 - a - - 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 —11— 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. -12- 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. —14— 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 -15- 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'. -16- 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. -17- 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 0 c• g -7 }( §/j j a0/ a@n § 2 }M ƒ32 ° § a 1— ° -/ -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. -75- 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. -76- 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 -79- 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 00.0 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 0 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 / 2A / // 15 / I i 5...ARATOOA ONt9RESS RLA B- YtJJB7�'&TA. 0/(90 FART OF LOT 13 C�92 / 5 / ` ?£OUNTRY S Tr%' T CASE # 0808 -03 5. SUBJECT PROPERTY SIJ£JECT PROPERTY LOCATION MAP 4/ SP >O3 =05 A Wt6E''PLAZA / 2A / / / 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 AT A lent- Tcunst Diemet EI N33F3∎0hnndB sines Di Orin 3-1 N3ighborliC,d B511653 D atilt 3.3 B833 ont Eustheas std 323, Barr,- Island Pun=ss Dlstrd 3s esna,8 DiStitt B. 4 Genera' Businesa Dutriol 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: P3+551311bp R13 One FaNlyDwelling Dtanfl. R 13 0lQFgm0.y D eiling Dlsfilrt RI 4s Fr1i,:[Meiling D.tSe R MuIBpie Dwellfny DiStiiL 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 -146— 0 0Th mam g > yq z ati n 2 • X55 ° 6am § eiviA8 N 5 qW ptl �' 0000000 11..@ +A$g `>j Syr -oxA pp S2 $g illillit€ -@XR!p w! ;; z y 3 3a3' 3.3 cs a9zx1�I"5z9� °¢ SO a9yQ mzz.zAAo 0 a x 2n nnonn2nnn 111111311111 .202,2002000 XXX %XXV0V451i )1U4)1 % %X D e > >m >>fO -i -1 '� -1 -1 -1 w HUM, mmommmm m mzm rmt r OO -ottA VSA VS yyp-i-1yy mm >rmrmm m.2 m J O Lnin:NmE EFItnAlggN $ro'mmmm� $0000000-8 41 1 § § §1 2 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. 02/08 -150- B-1 - 47 - 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; 02/08 AB -151- - 48 - (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. 02/08 AB -152- - 25 - 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. 02/08 R -IA -153- - 26 - ( 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. 02/08 R -I A -154- - 27 - 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. 02/08 R -1A -155- - 95- 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 02/08 1 -2 -156- 02/08 - 96- 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 -157- 1 -2 - 97- 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. 02/08 1-2 -158- - 9g- 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. 02/08 1 -2 -159- -99- (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. 02/08 1 -2 -160- - 87 - 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. 02/08 B-5 -161- - 88 - 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. 02/08 -162- 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 -163- 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. -164- 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 0 ,RfR AD SARAT 103 -0 PLAZA 2.4 14 •tURb ( ADD 13 ONGRESS PL A E UNIT 3 ARATOGA W ER PLZA 4 N•TWIER= - CE 13 ID 14 ROB OUNTRY 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— NUECES RIVER /BRIG PK ANNEX COASTAL BE 1 R -1B CALALLEN HIGH SCHOOL NORTHWEST IYI ?RIVER N ECES RIV - IR R/VER WAY BINS PC 90FOM A 88. 202000 Prepared By: SRR TABC2008 -01 13941 NORTHWEST BLVD. SITE - EXISTING ZONING, NOTICE AREA & OWNERSHIP A -1 Ap.NNwe Hose 04tlln A-IA Apartment Hope Oland A-2 Apartment NOM 0Ino AB Pakuao. Ora District AT Apartment-Taunt Oahe B -t Neighborhood firmness MANN B-IA Neighborhood Bums, District 8-2 Baytdat Buskins Maid B-2A Senior Island Bums, District 83 BoSwes Matt B-4 Gent Busm.s DSti B5 B6 80 FA NC Primary IMAMS MAW Primary BIanS. Core Diak1 Corpus Christi 9..a, Moon Dist Farm Rural DARN Hsbn9KUbn1 Umdmnk PnaN n -1 limited IMUotal Cannel -2 URA Indof.IORnd .2 Henry 'Muted Matt PU0 Pbnmd Unit OwMOpmem R -IA One Family OwRng Othit R-IO Qx F.rsy MMbq DRAM 17-50 On. F.niy MSHrg DARN R -2 MOON. Dram District RA On. F.my MMhg DAMN RE Residential EWn CANA R -TH TwmMne Dwelling Matt SP Special Pane T -IA Tnvl Tnier Park Cuba TAB MenMWn d Hero PAP want T-1C Manufactured Homo SWdwtnn District Supxy Roparly 0 Owners w1A 200' buffer II Amor 4 Pigmy woo:, 200 on Oxon effected ov1NRk, awe X in b poshon - City of Corpus Christi /1y Gsfi78 9 7'c' stp y k l r� d ��♦%r Sewi AN X008 oi 505 It Saes Wet, 359 sleq! KS ;�, 9i�, fl 71361 UFR k k. 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 —184— 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 -185- 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 -189- 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. —190— 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 -191- 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 —192— 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 -193- 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. -4- —194— 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, -195- 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 -196- 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 —197— 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 -198- 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. -199- (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 -10- -200- 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 —201— 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 -12- -202- 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 -13- -203- 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. -14- —204— 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 -15- -205- 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, -16- -206- 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 -17- -207- 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. -18- -208- 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; -19- -209- (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 -20- -210- (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 -21- —211— 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 _22- —212— 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 -23- —213— (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. -24- —214— "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. -25- —215— (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, -26- -216- 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 _27_ —217— 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 _2g_ -218- 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. -29- —219— (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. -30- -220- 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 -31- -221- 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 -32- -222- 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- " o vi `0 a $ O w m a u E� s w =fi `0 qE '' .• 0 0 t` 0 0 a s u 0 H e 8 c s'� E • T d '= c .L -- ▪ 0 5 v u d c= U � 0 0 T r a • u • a 'ti m " ts s o '0 O c• . • T 0 0 c o w 0 0 m € 0 w • m h o ;= oU ▪ to m.� £ -5 - 2 E h E a _ 0 ,. O t_ o u • O E a C ▪ u o G • on F o £ 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 —240— 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 - iv - -241- 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 -v- -242— 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.) - vi- -243- 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 - -244- 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 - -245- $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 -I- -246- 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 - 2 - -247- 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 - -248- 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 - 4 - -249- 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 $ 80250741.5 - 5 - -250- 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 80250741.5 - 6 - -251- 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 80250741.5 - 7 - -252- 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 80250741.5 - 8 - -253- 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 80250741.5 - 9 - -254- 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. 80250741.5 - 10 - -255- 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 80250741.5 -256- 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. 80250741.5 - 12 - -257- 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. 80250741.5 - 13 - -258- 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 80250741.5 - 14 - -259- 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 80250741.5 - 15 - -260- 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 80250741.5 - 16 - -261- 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. 80250741.5 - 17 - -262- 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 80250741.5 _18_ -263- 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 80250741.5 - 19 - -264- 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 80250741.5 - 20 - -265- 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 80250741.5 - 21 - -266- 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 80250741.5 - 22 - -267- 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. 80250741.5 - 23 - -268- 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 ti Tr 0 p. n Q V n NN 00 0: f' e N o m yey m n O N N N N H r CO m a 00 N r m 00 a N 0 r N m O b V. N O H 88888 0 0 6 o vi < r 2 a a0 M en N m' m m g m 0 m 0 On b 0 00 OD N r N NNa�; m 00 d et CO Q m O r 0 ' v; a 0 0 N N :0. 0D 00 N V '0 8 o e 8 e C 7 b V O m e N N N m d a m V b '0 `NO b 00 < N m m N vd w a 0 a ^ m d r r b 0 00 b .0 0 o 00 W. v>>i n a m d a vi e a en N 8E888 vi N o e oq v eel 0 O. 0 m d d' 00 0 0 O ✓) N N N O O 0 0 m m m m gNNN O ON 00 b b N N 00 8 8 O 8 C 8 0 N N N N 00 2 q 0N 0 0 O 8 N Q OD 00 m Se r O 0 N 0 O .m+ < 0 0 m ee 0 00 e ' N 0' r m N N N N N 8 8 8 0 0 o o 0 0 0 N N N N N mn N U N m .e N m a K a Er m n OD m OO N 0 O in V N N m O N b O N N N O - TO m O N b < T O r O. 0 00 a w V 0 0 0 0 0 8 0 8 0 0 „ O O d b 00 et m m m m m m a d CO r m e O N r 0 re r 00 00 r m m en R 0 00 r N r 01 a N m m d 0 ' a u d in in el ON N .= v v N m Q O0 u0C d 00 ( y Es a r 3 N 00 0 o 0000 0 re N g 0 a a or a ' d -� 0 0 0 N 000 V 8 000 000 Oro 8 00 N go. m O d p r N O m b m d d m m m 8 0 8 8 o 8 m0 N • 40 Q Q Q 00 0 a e m b O r N N r 0 on 0 N N N m m Q a d ein v h co a m a N a m v0 eN0 N V 00 r . b v .0 0 0 8 8 n' r r h vb a a .+ r d N N e :0 .a. e m r r rm e o r 0 d N 0 O Q r O N vi d AI M N 0 0 $ O F N. 0 n n r O in O N N 0 N N et N '0 r 00 N N N 0 0 0 re N N N N N —275— - a 8 m e 0 0 r v 04 Ni b 0C O r Q T r in N — — re, 000 Q O CO 10n O. �O q e — r r4 ri $ a at a a N N N N CO 0 yN - 0 00 m d a b a d v r N 8 x 8 0 pN pN O O R Q 8 .. N m N N N a N b m a Q 0 0 0 r e CO CO CO pVIp 0 0 o N te re 0 m b 0 N Q re 00 en N N tel N 0 0 0 0 0 0 8 v 0 - d 0 8 0 m O vi bi in N n h b N N r d m b 0 0 N .N. N C N O .. O 000000 N N N - 0 N in N o 0 n vri a n d m ('4 O O 8 O 8 e; v; $ e ri N N N ' 0 in 0 N 00 00 pO W t� m 8 y DO e n 00 U o r O r M 8 0 O 8 0 8 0 0 O b ryb 00 r n N 0 V e O O O O O 8 0 0 0 8 0 in N re N 0 v m O a O V .. d N b r 00 N N N NO NO N ere V V N N N N N 0- n O r 000 N on V m b r e r 00 m et b m b b d m O 8 0 0 0 0 h O N a vi e n "" " N s N N N o m ee e fV N 8 t.- o N re 0 -_N m N .. 0 0 0 0 m 0 8 8 0 O O 8 N 00 000 00 00 V O Cre co m 8 264,700,000 8 124,316,180 00. O' 0'. N 00 O' 00 a b m 00 O m r N H O O N 00 1' Q N m m wbi n n ti N N N N N 0 N 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- z W z 0 Major Sources of Revenue b H ▪ 0 U U O Q 7 a0± .y� Q 'O N m = • m 0 aa� d W E U � m E P4 8 w0 H � .2 000 nL' U N w r g r � 0 00 m • 0 • w E 00 w .E ▪ 3 • O N W ' fl U gF N V P. 2 Os dy m 0 O co Etltl ✓• 0 n r 0p m- e 00 e in. in • .n N d DI m e' m 0 Q 0 O^ a N„ rn vdi W N N pNI 0 m N O m N N o N o .0i 00 .- ,+i - b „ V N 00 r m .„+ Od. N 0 N O. 0 0 0 O • OD l°mN gs 0 o 0' o m ✓t V N N I7 pp r; t- 3 1-0 V N^ - m^ V„ O 8 cm m r a s i 0' V O vain N a 4' �pp m ° O O b y 0' n .m+ N r 0 h r d of d d .r ✓t N N N H N d m b wt h 00 m N N N Dt O N d O V �O 0 07 .G ter m • O ��`% m 0 0 n° b(1 d V o 0 N m- .: m m r, a �. < 00 Q• O 0 N 4 O N 0' vi m (Nn 0 0 P d N- N _ mmet1 N .+ < O b y�nD CO M 0 0 0 N V r O -. m0 p - E. •. d IT Oj O. en N. CO vmi N en • n - - (4 n 00 M 0 O. N 0' o V It m N rei et 0. Q co N 00 N .O m Q en en m .. m Cn. N N _ m O h1 D° or m 00 ▪ N O m b 0 0 N VI 0 N N. 0 O\ CO N 0 0 00 CO 0 Pi m o ' [f o V 00 of o 00 V N O N O b O m d f N (N7 m d h y .- 00 d N Al vt d lV 00 O 0' 00 in •-• m 0 d 00 0 O • N 0< 0 00 .. yin. n `n V 0 `O 0 d m N r V O b d S m • m 0 - or ry 0 N 0' .+ 0 0 O. „ 0 0 0 MO O N m „„ m m O N d N O, N m, a & - N” e u., m 0 n a v — - (O.( `O .� - re; N •.i .O 00 Q m V o O d r m T N OO 411 St, O N m y '0 0 O (Nn en. o dv o a°i $ 1 e 0 0 o e d N O - „ N 00 00 4 vl or m N 00 e N 00 b 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 [The remainder of this page intentionally left blank] 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 NNONNVWM N mN Om�DOON fnN Nsggss°a m N.5 NX Nm a NN NO.• m�..N-.Nm N ∎O N NQ O- Og.- $ p P▪ OOpOQ C - g185 N $ m - - g- p• •N O�rmim --• 0OCA N Q N 8r-.e m NO I�N N TN gA tot r-E ry 00.0. F .gym g a74 N ,c;* WOO M •• Q OVNWNN ONQNOO N W W,—^ NON • f P m Nrn pp W N arce. r ry N - NM 1 CiknONN,0 NV N 1N ns O VmN1N PN ^0 I_eN- N NN W -R0 0- _m • me_ _ mp - e SrtiN < H m N N NOON ■ON bNbbSC [N`1 mO N P0m ON N 10f'P N 0 m Q N m P M N m F „NOON N N ■N W 00 $206,028,792 S221,054,240 b N 0 N V 0 N 0` 8 ' 0 6 2` n m .3 5 5 $'o E -ic£EE geT8 8 _8 8.. E „e, m 0 q m 0 0 9g • m C m m E '8 E c O p 6 IF P T C C Y 0 u 0 $ 00 E c e W v - u u8 .s 3 E m i Uw -W 6 CC V :5 . r om 0 ' > 0 X 0 U C m 8 m E >w 2 -31 2 3 us <3 5 E • iCoo— 8 u W > c ` c • m as U$ sea am w e W m E E 5 .C-' ,04 2' w- is 3 ;€5.0 p m m U K L ge 9 m O k -C - aki D m 8 E y t0 N G o -C W m ,C C� E p h W.GN8 4.-a88-1 e h i E o.ay E,,`o'm H�dhr3idl —282— 0 0 0 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 [The remainder of this page intentionally lefi blank.] A -13 -284- Assessed Valuations 0 0 0 0 b , .1 0 t 2 0 X 7 00 yN H d e e>> a e e%o n el o o to In o . in M M V) en t0 00 N 00 vi N ON 0\ 0 in a' 00 M .--i 00 N 00 00 NO N e t\ wl • 00 N et 7 0\ l M ONO N t` O Vl N M N 000 ti vw N h M N e fe t-- et N CO" 00 O N- t .•• M N O t-t VD n O t0 M er N 00 ON T 01 O .. N en V1 tD •! M V1 t` CO N 00 00 ON t O O V) N 00 N et en t n N 0% t0 Vl N Vl V b D\ V1 V) in 00 V1 N Vl ON o N 0 0 M Vw O M tO 00 in in M N M N N ON VD t- CA" o0 .+ N t ND V1 N V' en M t-- N O R VD O et Ch NO a 00 • [� 00 00 00 Ch O —t re M Vl e} M O b Q et •--• n N t-- N 00 t0 M M O0 O et b 00 ten ON. h ti t- V) '0 • M N 00 V1 01 M 0 00 00 0 O O. N M 00 O M Vl t0 0 N •-•1 O M r .-1 O t l� ■ N M O\ 01 M •7 a' 7 00 ON Q\ O O .ti N N e N0 NO V' 0' N M N 0 0 NO N M M t- 0 a' 0 0 l� o r , t- N en oo o rn cc ▪ i 00 Vi W 7 NO N N NNO VD 0 VD t` 00 n 1/40 N o0 O 00 N et N 0 N F o 00o 1 ON ON 000 -.tea ON 7 M N N NO co O h et 0 0 0 0 0 0 ON - N N 00 N 0 00 to M t0 N N N CT" 7 t� O1 h 7 ON' Vi V1 M N M N 1/40 M M M 0 vt tD ON• N 7 N T O N Do 7 0't` Vi NViN '0T 00 N t- M N N t- N NO t- 00 0 V CT V1 N O t t 00 00 00 0t 0 .--i N d' V Th 00 NO o, to N �" 1" v v ` vn O tp N t0 O M 7 ao tO W e"N000c 7-+VDen O O 7 O M 7 tO Nt, ON P 00 N h 0 1/40 t n 7 V O 00 ON N O Vi to Vi M e • N N N t0 O\ M ON t0 V1 t- O et Or Ct N N 1/40 M tD N tN N 00 O+ O tN y e e e e e e v o e e h e e 0 e e e e e e e 0 0 0 0 0 0 0 0 0 • a o 0 0 0 0 0 0 0 0 0 00 0 F �• .. N M e V1 NO N 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N -285- 0 c O t m o 2 0g U Vl • •%o "� a 0 t0 0 a+ O O m .y+ 4 O 0 �y to '� S. 0w e .cae U • m 7 7 O gsa 00- •S •S byes y"E 3 b 630 4 • 0! 4- X R'O y 2 • 40 FW ' • O c) a • - 2 • 0 0 0 0 O > s O H 0 at p , L.nwQE o o,.o04 • O • r b C 't ti .0 r C orle. .ao00,v 3 o 5 w ? . 7e- et 000 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 [The remainder of this page intentionally left blank.] 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 80250741.5 A -19 -290- 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 [The remainder of this page intentionally left blank.] A -20 -291- 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. 80250741.5 A -21 -292- 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. 80250741.5 A -22 -293- 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. 80250741.5 [The remainder of this page intentionally left blank.] A -23 -294- 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. [The remainder of this page intentionally left blank.) 80250741.5 A -24 -295- APPENDIX B CERTAIN INFORMATION RELATING TO THE CITY OF CORPUS CHRISTI 80250741.5 B -I -296- 80250741.5 [This page intentionally left blank.] B -2 -297- 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: 80250741.5 B -3 -298- 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 80250741.5 B -4 -299- 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. 80250741.5 B -5 -300- 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: 80250741.5 B -6 -301- 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. 80250741.5 B -7 -302- 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. 8025074 t.5 B -8 -303- 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. 80250741.5 B -9 -304- 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. 80250741.5 [The remainder of this page intentionally left blank.] B -10 -305- 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. 80250741.5 B -11 -306- 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. C -1 -307- [This page intentionally left blank.] 80250741.5 C -2 -308- 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 80250741.5 E -3 -309- 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. 80250741.5 E -4 -310- Respectfully, 80250741.5 M. E. ALLISON Be. CO., INC. 950 East Basse Road, Second Floor San Antonio, Texas 78209 Financial Advisor -311- wy City of Corpus Christi -314-