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Agenda Packet City Council - 10/14/2008
CITY COUNCIL AGENDA OCTOBER 14, 2008 4 0 >4 E 4 bus c EA LA WA CLIr 4,41 RPOR11 1852 11:45 A.M. - Proclamation declaring October 17, 18, 19, 2008 as "48th Annual Texas Jazz Festival Days" Commendation Certificates for "2008 Operation K.E.Y.S. Partners" (Keeping Every Youth in School) Presentation regarding the Corpus Christi Ice Rays AGENDA CITY OF CORPUS CHRISTI REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD CORPUS CHRISTI, TEXAS 78401 OCTOBER 14, 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 ft to the City Secretary. Si Usted desea dirigirse al Concilio y cree que su kyles es limitado, habre un interprete ingles- espanol en todas las juntas del Concilio para ayudarle. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (at 361- 826 -3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Henry Garrett to call the meeting to order. B. Invocation to be given by Pastor Mark Montgomery, Grace United Methodist Church. C. Pledge of Allegiance to the Flag of the United States. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor 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 Hummell City Secretary Armando Chapa Bill Kelly John Marez Nelda Martinez Michael McCutchon E. MINUTES: 1. Approval of Regular Meetings of September 23, 2008 and September 30, 2008. (Attachment # 1) Agenda Regular Council Meeting October 14, 2008 Page 2 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) F. BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2) 2. * Commission on Children and Youth * Ethics Commission • Leadership Committee for Senior Services * Regional Health Awareness Board * Transportation Advisory Committee * Weed and Seed Steering Committee G. EXPLANATION OF COUNCIL ACTION: For administrative convenience, certain of the agenda items are listed as motions, resolutions, or ordinances. If deemed appropriate, the City Council will use a different method of adoption from the one listed; may finally pass an ordinance by adopting it as an emergency measure rather than a two reading ordinance; or may modify the action specified. A motion to reconsider may be made at this meeting of a vote at the last regular, or a subsequent special meeting; such agendas are incorporated herein for reconsideration and action on any reconsidered item. H. CITY MANAGER'S REPORT: (NONE) I. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been furnished with background and support material on each item, and /or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not 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 a service agreement with The Doctors' Center of Corpus Christi, TX for drug testing services, in accordance with Request for Proposal No. BI- 0071 -08, for an estimated three -year expenditure of $326,310 of which $81,577.50 is required and budgeted for the remainder of FY 2008 -2009. The term of the service agreement will be for three years with an Agenda Regular Council Meeting October 14, 2008 Page 3 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) option to extend for up to two additional twelve -month periods subject to the approval of the supplier and the City Manager or his designee. This service will be used by all City departments. Funds are budgeted in the Liability & Employee Benefits Fund. (Attachment # 3) 4. Motion approving a supply agreement with Vulcan Construction Materials, LP, San Antonio, Texas, for approximately 3,250 tons of cold mix -cold laid asphalt and approximately 7,150 tons of pre- coated aggregate, in accordance with Bid Invitation No. BI- 0174-08 based on only bid for an estimated semi - annual expenditure of $454,851. The term of the contract will be for six months with an option to extend for up to five additional six month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by Street and the Utility Departments in FY 2008 -2009. (Attachment # 4) 5. Motion approving the lease purchase of two (2) Rear Steer Brush Loaders from Santex Truck Center, San Antonio, Texas in the amount of $265,216. The award is based on the cooperative purchasing agreement with the Houston - Galveston Area Council of Governments (H -GAC). These units are replacements to the fleet and will be used by the Solid Waste Department. Financing for the rear steer brush loaders will be provided through the City's lease purchase financing program. (Attachment # 5) 6. Motion approving the purchase of one (1) vactor truck from Grande Truck Center, San Antonio Texas in the amount of $279,515. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The vactor truck will be used by the Wastewater Department. This unit is a replacement to the fleet. Funding is available from the FY 2008 -2009 Capital Outlay Budget in the Maintenance Services Fund. (Attachment # 6) 7. Motion approving supply agreements with the following companies for the following amounts, for vehicle and equipment tires in accordance with Bid Invitation No. BI- 0204 -08, for an estimated annual expenditure of $471,676.44. Awards are based on low bid and only bid, on a multiple progressive basis. Agenda Regular Council Meeting October 14, 2008 Page 4 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) The term of the contracts will be for twelve months with an option to extend for up to two additional twelve -month periods subject to the approval of the suppliers and the City Manager or his designee. Funds have been budgeted by the Maintenance Services and Aviation Departments in FY 2008 -2009. (Attachment # 7) Wingfoot Commercial Tire Systems, LLC Corpus Christi, TX Items: 1.2, 1.3, 1.5, 1.6, 1.8 -1.12, 1.15 - 1.17,1.19, 2.2 -2.4, 2.6 -2.8, 2.10 -2.12, 2.14, 3.3, 4.2, 4.3 Total: $398,848.44 Strouhal Tire Corpus Christi, TX Items: 1.13, 2.5, 2.13 Total: $72,828.00 Grand Total $471,676.44 8. Motion approving a service agreement with U.S. Security Associates, Corpus Christi, Texas, for Uniformed Guard Security Services for City Hall, Frost Bank Building, Central Library, Greenwood Library, Janet F. Harte Library and the O.N. Stevens Water Treatment Plant in accordance with Bid Invitation No. BI- 0122 -08 based on low bid meeting specifications for an estimated annual expenditure of $369,037.50, of which $290,962.50 is budgeted in FY 2008 -2009. The term of the contract is for twelve months with options to extend for up to two additional twelve -month periods, subject to the approval of the contractor and the City Manager, or his designee. Funds have been budgeted by the using departments in FY 2008 -2009. (Attachment # 8) 9. Resolution authorizing the City Manager or his designee to submit a "HOME 2009" grant application to the U.S. Department of Housing and Urban Development in the amount of $1,228,303 for Continuum of Care Homeless Assistance and to execute all related documents. (Attachment # 9) 10. Resolution authorizing the City Manager, or his designee, to execute the third amendment to the contract between the Corpus Christi Business and Job Development Corporation and Nueces County Community Action Agency (NCCAA) for a Pilot Infill Housing project to utilize remaining land acquisition funds for development costs and green building /energy efficient construction techniques for the remaining eight homes to be constructed. (Attachment # 10) Agenda Regular Council Meeting October 14, 2008 Page 5 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 11. Ordinance authorizing the City Manager or his designee to execute a one -year extension agreement of the Airline Use and Lease Agreements with American Eagle Airlines, Inc., Continental Airlines, and Southwest Airlines Co., for use of space at Corpus Christi International Airport and ratifying such extension agreements to be effective August 1, 2008. (Attachment # 11) 12. First Reading Ordinance - Amending the Code of Ordinances, Chapter 53, Traffic, Schedule V, Section 53 -254, (Increase of State Speed Limit in Certain Zones) by establishing a revised speed limit of 70 MPH on U.S. Highway 77 (increasing the speed limit from 55 MPH to 70 MPH) from Interstate Highway 37 to the City limits south; providing for penalties; providing for publication. (Attachment # 12) 13.a. First Reading Ordinance - Amending the Code of Ordinance, Chapter 53- Traffic, Section 53 -250- Schedule I, One -Way Streets and Alleys, Section (a), by removing current one -way traffic pattern on Riverwood Road to two way traffic in the northbound and southbound direction of travel from F.M. 624 (Northwest Boulevard) to River Hill Drive, at all times; providing for penalties; providing for severance; and providing for publications. (Attachment # 13) 13.b. Motion authorizing the City Manager or his designee to erect a "STOP" sign on River Hill Drive at the intersection of Riverwood Road in the northbound and southbound direction. (Attachment # 13) 14. Second 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; and providing for publication. (First Reading — 9/09/08) (Attachment # 14) Agenda Regular Council Meeting October 14, 2008 Page 6 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) J. PUBLIC HEARINGS: ZONING CASES: 15. Case No. 0908 -01, Titan Support Systems, Inc.: A change in zoning from a "B -3" Business District to an "1 -2" Light Industrial District resulting in a change of land use from commercial to light industrial consisting of light manufacturing on property described as Flour Bluff Park, Block 16, Lots 20 through 25 and 45 through 47, located at 9830 South Padre Island Drive, between McIver Street and Greenbay Drive. (Attachment # 15) Planning Commission's Recommendation: Denial of the "1 -2" Light Industrial District and, in lieu thereof, approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and subject to four (4) conditions. Staffs Recommendation: Denial of the "1 -2" Light Industrial District and, in lieu thereof, approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and subject to six (6) conditions. ORDINANCE Amending the Zoning Ordinance, upon application by Titan Support Systems, Inc., by changing the Zoning Map in reference to Flour Bluff Park, Block 16, Lots 20 through 25 and 45 through 47, from "B -3" Business District to "B -3 /SP" Business District with a Special Permit to allow light manufacturing use for cutting and sewing of fabrics and elastics without outdoor storage, subject to four (4) 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 October 14, 2008 Page 7 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) K. REGULAR AGENDA CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES: 16. First Reading Ordinance — Authorizing the City Manager or his designee to execute an Industrial District Agreement with the Port of Corpus Christi Authority, as the Landowner, and Las Brisas Energy, LLC, as lessee and improvements owner; reserving and preserving all rights, powers, and duties of the City Council. (Attachment # 16) '17. Resolution expressing the City of Corpus Christi's support for the establishment of a Bachelor of Science in Mechanical Engineering Degree Program at Texas A & M University — Corpus Christi. (Attachment # 17) 18. Motion approving the 2008 Tax Levy of $77,239,474.26 based on the adopted tax rate of $0.563846 per $100 valuation, in accordance with Section 26.09(e) of the Texas Property Tax Code. (Attachment # 18) 19. Ordinance appropriating $800,000 from estimated ad valorem tax revenues in Fund No. 1020 General Fund for pay range adjustments for pay plans 100, 400, 500(B), 600, 900 and 1000 in the Fiscal Year 2008 -2009; changing the FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 by increasing revenues and appropriations by $800,000 each. (Attachment # 19) 20. 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 an aggregate principal amount not to exceed $12,000,000; establishing parameters regarding the sale of the Certificates of Obligation; approving - the- execution-of- a Purchase Contract; and all other matters related thereto; and providing that this ordinance shall be in force and effect from and after the date of its passage. (Attachment # 20) 21. Ordinance appropriating $2,054,268.50 of unappropriated interest earnings from the following funds: $605,285.39 from No. 4525 Storm Water Commercial Paper Program Capital Improvement Program (CIP) Fund; $971,369.42 from No. 4475 Agenda Regular Council Meeting October 14, 2008 Page 8 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Water Commercial Paper Program CIP Fund; and $477,613.69 from No. 4500 Waste Water Commercial Paper Program CIP Fund; transferring and appropriating $605,285.39 into the No.. 3480 Storm Water CIP Fund; transferring and appropriating $971,369.42 into the No. 4080 Water CIP Fund; and transferring and appropriating $477,613.69 into the No. 3430 Waste Water CIP Fund; for projects relating to improvements to the City's Utility System as allowed by the utility system revenue bond covenants; changing the FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 by increasing appropriations by $2,054,268.50. (Attachment # 21) 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, habre un interprete ingles- espanol en la reunion de la junta para ayudarle. PER CITY COUNCIL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL BERATE, EMBARRASS, ACCUSE, OR SHOW ANY PERSONAL DISRESPECT FOR ANY MEMBER OF THE STAFF, COUNCIL MEMBERS, OR THE PUBLIC AT ANY COUNCIL MEETING. THIS POLICY IS NOT MEANT TO RESTRAIN A CITIZEN'S FIRST AMENDMENT RIGHTS. N. EXECUTIVE SESSIONS: 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, Agenda Regular Council Meeting October 14, 2008 Page 9 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 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. 22. Executive session under Texas Government Code Section 551.071 to consult with its 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 open session. 23. Executive Session under Texas Government Code Section 551.071 regarding fire collective bargaining negotiations, with possible discussion and action related thereto in open session. 24. Executive session under Texas Government Code Section 551.071 to conduct a private consultation with its attorney regarding Nueces County Water Control and Improvement District No. 4 v. The City of Corpus Christi, before the Texas Commission on Environmental Quality, Original Petition Appealing a Wholesale Water Rate and Request for Interim Rates, with possible discussion and action in open session. O. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall, 1201 Leopard Street, at A: le" p.m., on October 8, 2008. l��;urv�.�1ta ,1 Armando Chaps -,.._" City Secretary NOTE: The City Council Agenda can be found on the CityUs Home Page at www.cctexas.com after 7:00 p.m. on the Wednesday before regularly scheduled council meetings. If technical problems occur, the agenda will be uploaded on the Internet by Thursday morning. Symbols used to highlight action items that implement council goals are on attached sheet. City Council Goals 2007 -2009 Pa% 1.11OWNI 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 ABSENT Nelda Martinez *Arrived at 10:15 a.m. MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting September 23, 2008 - 10:00 a.m. City Staff: Interim City Manager Angel R. Escobar City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. Council Member Leal requested that a special prayer be given for Wanda Garcia, wife of Dr. Hector P. Garcia, who passed away this weekend. The invocation was delivered by Pastor Kevin Jennings with Mt. Olive Lutheran Church and the Pledge of Allegiance to the United States flag was led by Mayor Henry Garrett. Council Member Elizondo expressed his sincere appreciation to the Council, staff and the community for their support as he dealt with the passing of his mother. 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 meeting of September 9, 2008. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * Mayor Garrett referred to Item 2 and the following board appointments were made: Museum of Science and History Advisory Committee Nelida Ortiz (Reappointed) Georganne Gasaway (Reappointed) Lucia Inez Sosa (Reappointed) Shannon Madden (Appointed) Watershore and Beach Advisory Committee Guy Davis (Appointed) * * * * * * * * * * * * Sister City Committee Rose Gunji (Reappointed) Javier M. Morin (Reappointed) Phyllis Roseman (Reappointed) John Rocha (Appointed) Jorge Brenner (Appointed) Maria Jaramillo (Appointed) Dora Hidalgo (Appointed) Mayor Garrett called for consideration of the consent agenda (Items 3 - 8). There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: —1— Minutes — Regular Council Meeting September 23, 2008 — Page 2 3. MOTION NO. 2008 -251 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. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye "; Cooper and Martinez were absent. 4.a. MOTION NO. 2008 -252 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. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye "; Cooper and Martinez were absent. 4.b. ORDINANCE NO. 027861 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. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye"; Cooper and Martinez were absent. 5.a. RESOLUTION NO. 027862 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. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye"; Cooper and Martinez were absent. 5.b. ORDINANCE NO. 027863 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. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye"; Cooper and Martinez were absent2_ Minutes — Regular Council Meeting September 23, 2008 — Page 3 5c. RESOLUTION NO. 027864 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. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye"; Cooper and Martinez were absent. 6. MOTION NO. 2008 -253 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. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye"; Cooper and Martinez were absent. 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. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye "; Cooper and Martinez were absent. 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. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye "; Cooper and Martinez were absent. Mayor Garrett referred to Item 9, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Minutes — Regular Council Meeting September 23, 2008 — Page 4 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. City Secretary Chapa stated that the Planning Commission and staff recommended 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. No one appeared in opposition to the zoning change. Mr. Kelly made a motion to close the public hearing, seconded by Mr. Marez, and passed. Mr. Chapa polled the Council for their votes as follows: 9. ORDINANCE NO. 027865 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. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Marez, voting "Aye "; Cooper and Martinez were absent. Mayor Garrett referred to Item 10, and a motion was made, seconded and passed to open the public hearing on the following alcohol variance request: 10.a. Public hearing on a request for a variance from Dolores Gonzalez to operate an on- premises alcoholic beverage establishment known as El Tapatio Mexican Grill located at 13941 Northwest Boulevard. No one appeared in opposition to the alcohol variance request. Mr. Elizondo made a motion to close the public hearing, seconded by Mr. Kelly, and passed. Mr. Chapa polled the Council for their votes as follows: 10.b. RESOLUTION NO. 027866 Resolution granting a variance under Section 4 -5(f) of the Code of Ordinances to Dolores Gonzalez, d.b.a. El Tapatio Mexican Grill, to operate an on- premises alcoholic beverage establishment located at 13941 Northwest Boulevard. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Marez, voting "Aye "; Cooper and Martinez were absent. * * * * * * * * * * * * * —4— Minutes — Regular Council Meeting September 23, 2008 — Page 5 Mayor Garrett read the following statement regarding Item 11: "Due to current market conditions resulting in an unstable market and 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 30, 2008 City Council meeting. 11. POSTPONED UNTIL SEPTEMBER 23, 2008 .. ._ - let • •- GO - .l. •t• ... * * * * * * * * * * * * * Mayor Garrett called for petitions from the audience. J.E. O'Brien, 4130 Pompano, spoke regarding the general fund balance; the debt service fund balance; the effective tax rate; increased taxes; and the issuance of bonds. Jack Gordy, 4118 Bray, spoke regarding the procedures for filling potholes and the Council insurance. There being no further business to come before the Council, Mayor Garrett adjoumed the Council meeting at 10:17 a.m. on September 23, 2008. -5- PRESENT Mayor Henry Garrett Mayor Pro Tem Priscilla Leal Council Members: Melody Cooper Mike Hummel) Billy Kelly Michael McCutchon John Marez* Nelda Martinez MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting September 30, 2008 - 10:00 a.m. City Staff: Interim City Manager Angel R. Escobar City Attorney Mary Kay Fischer City Secretary Armando Chapa ABSENT Larry Elizondo, Sr. *Arrived at 11:25 a.m. Mayor Garrett called the meeting to order in the Council Chambers of City Hall. Council Member Leal requested that a special prayer be given for the following individuals that passed away: Leslie Mumphord with the National Association for the Advancement of Colored People (NAACP) and Freddy Cavazos with the League of United Latin American Citizens (LULAC). The invocation was delivered by Reverend Dr. Allen Mosiman with Parkway Presbyterian Church and the Pledge of Allegiance to the United States flag was led by Council Member McCutchon. 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 meeting of September 16, 2008. A motion was made and passed to approve the minutes as presented. * * * * * * * * * * * * Mayor Garrett opened discussion on Item 24 regarding a presentation on the impact of Hurricane Ike and extending the local state of disaster. Fire Chief Richard Hooks explained that this item is a request to extend the local state of disaster and provided a brief overview of the declaration of disaster and reimbursement measures. Chief Hooks stated that preliminary cost estimates for the emergency proactive measures including activation of the Emergency Operation Center (EOC) and the special needs evacuation totaling approximately $354,000. Chief Hooks added that this cost does not include the ongoing costs associated with the beach debris cleanup. Chief Hooks said the City has collected approximately 1,309 tons of debris with the associated cost of $14,252. Chief Hooks stated that the City continues to suffer damage from debris. Chief Hooks said that staff would meet with state and local officials on October 1s` to review the damages and eligibility for reimbursement. The following topics pertaining to this item were discussed: the amount of debris removed to date and the cost; the departments involved in the debris cleanup; truck charges; information received from the Coast Guard regarding debris in the Gulf; current debris conditions; and hours of overtime for staff. -7- Minutes — Regular Council Meeting September 30, 2008 — Page 2 24.b. ORDINANCE NO. 027882 Ordinance extending the local state of disaster declared by the Mayor on September 19, 2008 and continued on September 26, 2008. An emergency was declared, and the following ordinance was passed and approved with the following vote: Garrett, Cooper, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Elizondo and Marez were absent. Mayor Garrett opened discussion on Item 25 regarding Heather Ridge Estates Subdivision. Deputy Director of Development Services Johnny Perales provided a brief overview of the closure including site maps of the property showing the area of encroachment; location of the drainage right - of -way; and the scale of the closure. Mr. Perales stated that the three components to the easement closure included the existing utility easement along the edge of the property; the overlapping drainage easement; and the actual drainage right -of way that is proposed to be closed. The following topics pertaining to this item were discussed: whether the easement had a structure built on it; who built the structure on the property; the type of building located on the easement; the reason the encroachment was overlooked; the reason the closure is before the Council if the property is outside the City limits; the impact/penalty to the applicant for building on the right -of -way; whether the applicant pays for the drawings and diagrams; the width of the closure; whether the City will still be able to drain the land that is serviced with the drainage ditch; whether utilities are running through the easement currently; and whether the City can run utilities in the future to that area. City Secretary Chapa polled the Council for their votes as follows: 25.a. ORDINANCE NO. 027883 Ordinance abandoning and vacating a 1,931.10- square foot portion of an existing 20 -foot wide City utility easement, out of the Heather Ridge Estates Subdivision, Lot 7, adjacent to the River Trail Drive public right -of -way; requiring the owners, Ray E. Rabalais and Teresa E. Rabalais, to comply with the specified conditions. An emergency was declared, and the following ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. 25.b. ORDINANCE NO. 027884 Ordinance abandoning and vacating a 611.43- square foot portion of an existing City drainage easement, out of the heather Ridge Estates Subdivision, Lot 7, adjacent to the River Trail Drive public right -of -way; requiring the owners, Ray E. Rabalais and Teresa E. Rabalais, to comply with the specified conditions. An emergency was declared, and the following ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. Minutes — Regular Council Meeting September 30, 2008 — Page 3 25.c. ORDINANCE NO. 027885 Ordinance abandoning and vacating a 680 -87- square foot portion of an existing City drainage right -of -way, out of the Heather Ridge Estates Subdivision, Lot 7, adjacent to the River Trail Drive public right -of -way; requiring the owner, Ray E. Rabalais and Teresa E. Rabalais, to comply with the specified conditions. An emergency was declared, and the following ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. Mayor Garrett called for consideration of the consent agenda (Items 2 - 12). There were no comments from the public. Council members requested that Items 4, 6, 7, 8, and 10 be pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows: 2.a. MOTION NO. 2008 -254 Motion authorizing the City Manager or his designee to accept funding in the amount of $4,000 from the Texas Department of Transportation for the purchase of traffic safety - related equipment for the Police Department. The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. 2.b. ORDINANCE NO. 027868 Ordinance appropriating $4,000 from the Texas Department of Transportation in the No. 1061 Police Grants Fund. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. RESOLUTION NO. 027869 Resolution authorizing the City Manager or his designee to execute an Interlocal Agreement with Nueces County to participate in the Crisis Intervention Team (CIT), provide officers trained in crisis intervention to serve on the team, and provide $50,000 of in -kind services for officer training to participate in the Crisis Intervention Team (CIT). The foregoing resolution was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. RESOLUTION NO. 027870 Resolution authorizing the City Manager or his designee to execute an Interlocal Cooperation Agreement with Tuloso- Midway Independent School District to install and share fiber optic cable from Tuloso Road and Leopard Street to 7601 Leopard. -9- Minutes — Regular Council Meeting September 30, 2008 — Page 4 The foregoing resolution was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. 11. ORDINANCE NO. 027875 Ordinance abandoning and vacating a 321.35- square foot portion of a 5 -foot wide utility easement out of the South End Addition, Block 6, Lot 3A, adjacent to South Staples Street, approximately 131 -feet south of the Park Avenue right -of -way; requiring the owner, Lloyd W. Holmes, to comply with the specified conditions. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. 12. ORDINANCE NO. 027876 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. (First Reading — 9/23/08) The foregoing ordinance was passed and approved on its second reading with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. Mayor Garrett opened discussion on Item 4 regarding a lease agreement for the Police Department. Council Member Leal asked whether the new vehicle impound lot could be used to provide parking for police vehicles instead of leasing the property. Police Chief Bryan Smith said that cars can be parked at the new vehicle lot but that the lease agreement was also for a facility for police personnel to attend briefings. In response to Council Member Leal, Chief Smith said the new location is approximately three to four miles from the existing Corona Substation. City Secretary Chapa polled the Council for their votes as follows: 4. MOTION NO. 2008 -255 Motion authorizing the City Manager or his designee to execute a lease agreement with Greg Voisin Investment Corporation c/o Corpus Christi Realty Management, Inc. for a five - year term at $48,756 per year and providing for an annual adjustment as needed for insurance and property taxes. The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper, Elizondo, and Marez were absent. Mayor Garrett opened discussion on Item 6 and 7 regarding lease agreements with youth sports leagues. Council Member Leal asked staff whether all lease agreements for leagues could be renewed at the same time. Director of Parks and Recreation Sally Gavlik stated that staff would provide information on whether that was feasible. City Secretary Chapa polled the Council for their votes as follows: -10- Minutes — Regular Council Meeting September 30, 2008 — Page 5 6. ORDINANCE NO. 027871 Ordinance authorizing the City Manager or his designee to execute a five -year lease agreement with Southside Youth Sports Complex, a non - profit organization, for the use of Price Park for its youth baseball program in consideration of Southside Youth Sports maintaining the premises and improvements. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. ORDINANCE NO. 027872 Ordinance authorizing the City Manager or his designee to execute a five -year lease agreement with Coastal Bend Corpus Christi Football League, a non - profit organization, for the use of Botsford Park for its football program in consideration of Coastal Bend Corpus Christi Football League maintaining the premises and improvements. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. Mayor Garrett opened discussion on Item 8 regarding a lease agreement for tennis operations at H.E. Butt Municipal Tennis Center. Council Member Hummell asked whether security equipment including sound and movement detectors was installed at the tennis center as referenced in the agreement. Director of Parks and Recreation Sally Gavlik said the security equipment was not installed and that the City would install the equipment within the next two months. Mr. Hummell made a motion to amend the contract by changing the wording in Section 13.C. to require the City to install security equipment, including sound and movement detectors, in the Pro Shop and concession building within 60 days from the date the contract is entered. The motion was seconded by Ms. Martinez. The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. City Secretary Chapa polled the Council for their votes as follows: 8. ORDINANCE NO. 027873 Ordinance authorizing the City Manager or his designee to execute a five -year professional services contract and lease agreement with Cory Brooks, for tennis operations at the H.E. Butt Municipal Tennis Center (Tennis Center), in consideration of professional (pro) paying the city 5% of pro and lesson revenue, and collecting and forwarding City revenue for pro's exclusive use of tennis center, and City paying pro $4,138 per month for pro operating tennis center. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. Mayor Garrett opened discussion on Item 9 regarding a grant from PetSmart Charities for a trap /alter /release program. Council Member McCutchon asked questions regarding the new trap /alter /release program and the current system used by Animal Care Services. Animal Care Services Program Manager Kelli Copeland stated that the current system is to trap stray cats and euthanize them to remove them from the community. Ms. Copeland stated that the new program is a —11— Minutes — Regular Council Meeting September 30, 2008 — Page 6 better way of eradicating cats. In response to Council Member Hummell, Ms. Copeland said that the program will involve the assistance of volunteers from the community to trap cats and once altered, the cats will be returned to the neighborhood. Council Member Hummell asked whether the City supplies traps to volunteers. Ms. Copeland said the City supplies traps through this grant funding. Mayor Garrett asked whether the Animal Care facility is still housing animals evacuated during Hurricane Ike. Ms. Copeland stated that the facility is housing five (5) cats and three (3) dogs. There was a brief discussion regarding evacuation efforts for animals. City Secretary Chapa polled the Council for their votes as follows: 9.a. MOTION NO. 2008 -256 Motion accepting a grant from PetSmart Charities in the amount of $9,975 for a trap /alter /release program and authorizing the City Manager or his designee to execute a grant agreement and any related documents. The foregoing motion was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. 9.b. ORDINANCE NO. 027874 Ordinance appropriating a grant of $9,975 from PetSmart Charities in the No. 1066 Health Grants Fund to provide a trap /alter /release program. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent, Mayor Garrett opened discussion on Item 10 regarding the Oso Water Reclamation Plant Headworks Odor Control System. Interim Director of Engineering Kevin Stowers and Director of Wastewater Services Foster Crowell addressed questions on the following topics pertaining to this item: funding for the project; the total funding in the Wastewater Capital Improvement Program (CIP) this year; whether the new CIP will reflect the balance carried over from this project; the timeframe for the presentation of the CIP; the age of the scrubbers and whether the scrubbers have reached their anticipated useful life; demolition of the sludge pump building; when the Oso and Broadway plants were built; the anticipated life of the Oso plant; and how the Greenwood plant will accommodate the Oso transfer, growth from the southside, and the expansion of Texas A & M University — Corpus Christi (TAMU -CC). City Secretary Chapa polled the Council for their votes as follows: 10. MOTION NO. 2008 -257 Motion authorizing the City Manager or his designee to execute a construction contract with Holloman Corporation, of Converse, Texas, in the amount of $728,522 for the Oso Water Reclamation Plant Headworks Odor Control System. The foregoing motion was passed and approved with the following vote: Garrett, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, Hummell, and Marez were absent. -12- Minutes — Regular Council Meeting September 30, 2008 — Page 7 Mayor Garrett referred to Item 13, and a motion was made, seconded and passed to open the public hearing on the following zoning case: 13. Case No. 0708 -04, Patrick H. Nolan and Amy L. Nolan, d.b.a. The Storage Place: A change of zoning from a "R -1 B" One - family Dwelling District to a "B-4" General Business District resulting in a change of land use from residential to commercial on property described as 2.64 acres out of Wilde Subdivision, Block 1, Lot 1, located on the west side of South Staples Street and approximately 1,000 feet south of Timbergate Drive. City Secretary Chapa stated that the Planning Commission and staff recommended denial of the "B-4" General Business District and, in lieu thereof, approval of a Special Permit for mini - storage use without outdoor storage on the subject property, subject to a site plan and six (6) conditions. No one appeared in opposition to the zoning change. Ms. Martinez made a motion to close the public hearing, seconded by Dr. McCutchon, and passed. Council Member McCutchon asked whether a policy or process could be established to identify whether the applicant or the applicant's representative are present at Council meeting before the zoning hearing is opened. Mayor Garrett said he would address the matter in the future. The following topics pertaining to this item were discussed: the concerns with the perimeter fencing; access to the property; and notices returned in opposition to the zoning case. Mr. Chapa polled the Council for their votes as follows: 13. ORDINANCE NO. 027877 Amending the Zoning Ordinance, upon application by Patrick H. Nolan and Amy L. Nolan, d.b.a. The Storage Place, by changing the Zoning Map in reference to 2.64 acres out of Lot 1, Block 1, Wilde Subdivision, from "R -1 B" One - family Dwelling District to "R -1 B /SP" One - family Dwelling District with a Special Permit to allow for a mini - storage facility, subject to a site plan and six (6) conditions; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing for a repealer clause. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye "; Cooper, Elizondo, and Marez were absent. Mayor Garrett referred to Item 17 regarding the Convention and Visitors Bureau (CVB) Quarterly Report. Keith Arnold, CEO of the CVB, referred to a powerpoint presentation including the mission of the CVB; the FY2007 -2008 annual report; conventions booked at the American Bank Center; results on the National Tourism Week luncheon; highlights of the Coastal Bend Wildlife Photo Contest; outreach tools; examples of advertising campaigns and publications; tourism and travel activity; website information; community and public relations; and the work associated with nature tourism. The following topics pertaining to this item were discussed: advertising; the comprehensive plan for marketing the beach; economic impact; and nature tourism. Mayor Garrett called for a brief recess to present proclamations and listen to public comment. -13- Minutes — Regular Council Meeting September 30, 2008 — Page 8 * * * * * * * * * * * * * Mayor Garrett called for petitions from the audience. Jerry Garcia, 3801 Gollihar, spoke regarding the town hall meeting at Calk Elementary on September 29th and expressed concern with the eligibility of organizations receiving funding from the Community Development Block Grant (CDBG) program. Ray Medina, 5413 Cain, spoke regarding responses from the City on code enforcement issues. Foster Edwards, CEO of the Corpus Christi Chamber of Commerce, stated that the Chamber is looking forward to developing a new relationship between the City and the Chamber to move the City forward in a positive manner. David Silva, 1713 Keys Street, spoke regarding the City's evacuation efforts during Hurricane Ike and establishing speed bumps in his neighborhood. ** * * ** * * ** * ** Mayor Garrett referred to Item 18 regarding the Port of Corpus Christi Authority Annual Report. Mayor Garrett wished Executive Director of the Port of Corpus Christ John LaRue a happy birthday. Mr. LaRue introduced Deputy Port Director Frank Brogen. Mr. LaRue referred to a powerpoint presentation including a list of the developments at the Port; an aerial photo of Naval Air Station — Ingleside; view of the additional property located west to NAS- Ingleside; preliminary land use concepts and zoning for NAS - Ingleside; the La Quinta Trade Gateway Project; military cargo; and an example on wind power. Mr. Brogan provided a brief overview of the Harbor Island Project; Harbor Island Gaming Ship Terminal; Joe Fulton Trade Corridor; the Channel Improvement project; and the Tule Lake Bridge. The following topics pertaining to this item were discussed: the depth of the water around NAS - Ingleside; maritime operations at NAS - Ingleside property; reverting property back to the government; Redfish Bay; the value of the La Quinta Terminal site; capacity of import/export with the expansion of the Panama Canal; timeframe for the permit for the Tule Lake Lift Bridge; whether the Port is a governmental entity; land ownership at the Port; the mission statement; the future direction of Rincon Industrial Park; the Cotton Yard development; whether Rincon Industrial Park is outside the City limits; barge building; vehicle off - loading; the project stage of the highway exchange with Interstate Highway 37; whether there is a schedule for any development on Rincon Industrial Park with Ocean House; how long the 54 acres at Rincon has been under lease; drilling on Rincon; status of the refrigerated warehouse; whether the Ortiz Center will continue to operate as it is operating now; deepening of the channel; and whether the Port plans to secure loans with the Texas Industrial Development Loan Program. Mayor Garrett asked Interim City Manager Escobar to schedule a joint meeting in January between the City Council, the Nueces County Commissioners Court, and the Port of Corpus Christi Authority. Mayor Garrett opened discussion on Items 19 and 20 regarding the Downtown Management District (DMD). Heidi Hovda, Interim Director of the DMD, referred to a powerpoint presentation including an overview of the district; a district map; passage of the DMD petition; partnerships for the downtown vacant building ordinance, adopt DTOWN project; the Graffiti Summit, DTOWN Tram, cooperative advertising programs, and the Festival of the Arts; ongoing projects; update on the vacant buildings; residential development; advocating of development in and outside of the district; and acknowledgement of Norma Urban. —14— Minutes — Regular Council Meeting September 30, 2008 — Page 9 Director of Economic Development Irma Caballero explained that this item authorizes the execution of a two year agreement with the DMD in the amount of $145,000 for fiscal year 2008- 2009 and between $145,000 and $160,000 for fiscal year 2009 -2010. Ms. Caballero provided information on the performance measures; the services required; the preliminary plan; the final plan; and financial requirements The following topics pertaining to this item were discussed: personal property taxes assessed; code enforcement; compliance of the Wilshusen building; the consideration of appointing potential taggers on the committee for the Public Art Wall; the status of the third pump station; urban planning; taxes from the TIF; funding from the Downtown Merchant's Association; whether all downtown property owners are members of the DMD; whether there were difficulties getting sales tax reports from the State Comptrollers Office; the entity that appoints the DMD director; how taxes are collected; the timeframe for the Executive Director to begin; and long -term projects. Mayor Garrett requested a copy of the members of the Building Standards Board. Council Member Marez requested a report on the status of the Wilshusen building. City Secretary Chapa polled the Council for their votes as follows: 20. RESOLUTION NO. 027878 Resolution authorizing the City Manager or his designee to execute a two -year Interlocal Cooperation Agreement with the Corpus Christi Downtown Management District in the amount of $145,000 for FY 2008 -2009 and between $145,000 and $160,000 for FY 2009- 2010 for assistance in the redevelopment of downtown Corpus Christi. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Hummell, Kelly, Leal, McCutchon, Marez, and Martinez, voting "Aye "; Elizondo was absent. Mayor Garrett opened discussion on Item 21 regarding the Bold Future. Interim City Manager Escobar introduced the presentation team of Claudia Jackson, Dr. Mary Sherwood, and Debbie Lindsey -Opel. Ms. Jackson provided a brief overview of the initiative leadership; accomplishments of Phase I; entities providing endorsements; presentations made or schedule; the timeline; and Phase I funding. Dr. Sherwood spoke regarding the community meetings scheduled and pending and the request for funding Phase II. The following items pertaining to this topic were discussed: whether the support provided from Del Mar and Texas A & M University — Corpus Christi (TAMU -CC) is all in -kind support; how the funding for Phase II will be used; whether all of the bills in Phase I have been paid; the original budget for Phase I; whether Phase I was over budget; the budget for Phase II; where the other support for Phase II will come from; representative from other parts of the County; the total number of phases; the cost analysis for Phase III; whether the Bold Future anticipates requesting funding from the City for Phase III: the cost contributed for Phase II by Del Mar and TAMU -CC); the source of funding from the City; the balance in the CIP fund; whether funding affects the operating budget; and the timeline for Phases II -IV. Abel Alonzo, 1701 Thames, thanked the City for making the Bold Future project accountable. Mr. Alonzo stated that he is happy that the project is truly inclusive and diverse. City Secretary Chapa polled the Council for their votes as follows: —15— Minutes — Regular Council Meeting September 30, 2008 — Page 10 21.a. ORDINANCE NO. 027879 Ordinance appropriating $129,072.76 from No. 3160 City Hall Capital Improvement Program (CIP) Fund, transferring to and appropriating in No. 1020 General Fund for Phase II of the Community Visioning Project known as BoldFuture; changing FY2007 -2008 Capital Budget adopted by Ordinance No. 027546 by increasing appropriations by $129,072.76; changing FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 by increasing appropriations by $129,072.76. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Cooper, Kelly, McCutchon, Marez, and Martinez, voting "Aye "; Hummel) and Leal voting "No; Elizondo was absent. 21.b RESOLUTION NO. 027880 Resolution authorizing the City Manager or his designee to execute an Interlocal Cooperation Agreement with Texas A &M University — Corpus Christi for the Phase II of the Community Visioning Project known as BoldFuture. The foregoing resolution was passed and approved with the following vote: Garrett, Cooper, Kelly, McCutchon, Marez, and Martinez, voting "Aye "; Hummel) and Leal voting "No; Elizondo was absent. Mayor Garrett read the following statement regarding Item 22: "Due to current market conditions resulting in an unstable market and 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 October 14, 2008 City Council meeting." 22. POSTPONED UNTIL OCTOBER 14th Ordinance by thc City Council of thc City of Corpus Christi, Texas, providing for thc iscuance . other matters relating to the subject. Mayor Garrett opened discussion on Item 15 regarding an update on the Oso and Gabe Lozano Municipal Golf Courses. Park and Recreation Superintendent Ronnie Sepulveda introduced the presentation team as follows: Greenskeeper Clark Waters; Golf Pro for Gabe Lozano Golf Course Dennis Burns; Golf Pro for Oso Golf Course Marti - Longoria Potts; and Director of Parks and Recreation Sally Gavlik. Mr. Sepulveda referred to a powerpoint presentation including a history of the Lozano course; city ownership of Lozano; Lozano course features; 2003 Lozano surcharge improvements; bond work in 2004; bond work not addressed; solutions; expected outcome; Lozano future improvements; Oso course history; Oso course features; 2003 Oso surcharge improvements; Oso bond timeline; future improvements for the Oso golf course; and goals. The following topics pertaining to this item were discussed: comments received regarding the conditions of the Lozano course; the company that installed the new turf in 2003 and 2004; the location where the turf was installed in 2004; other courses that use paspallum seed; dormant times; —16— Minutes — Regular Council Meeting September 30, 2008 — Page 11 the reason that the City is not winter over - seeding the Lozano course; and the notification of excessive sand on the greens. Cefe Valenzuela, Mayor's Committee on Golf, stated that the committee has been meeting with staff regarding the conditions of the golf course. Mayor Garrett referred to Item 16 regarding a report on the Municipal Court Judges Salary Comparison. Council Member John Marez, Chair of the Municipal Court Committee, stated that there are issues that still need to be addressed and the committee has decided to postpone any recommendations until October 14tH Mayor Garrett opened discussion on Item 23 regarding the official intent to reimburse costs to the City's Utility System from the issuance of Revenue Bonds. Interim Director of Financial Services Constance P. Sanchez explained that this item is a resolution expressing official intent to reimburse costs associated with the City's Utility System in anticipation of selling approximately $75,000,000 of revenue bonds. Ms. Sanchez stated that the City anticipates selling the revenue bonds later this year if the market conditions permit. The following topics pertaining to this item were discussed: the types of projects, pending funding for scheduled projects; whether this item is budgeted; how the dollar amount was determined; whether the City expects to spend $75 million in the next 60 days; the commercial paper program; the actual dollar values of the projects; There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 23. RESOLUTION NO. 027881 Resolution expressing official intent to reimburse costs with respect to the construction of improvements to the City's Utility System from the issuance of Revenue Bonds with maximum principal amount not to exceed $75,000,000. The foregoing resolution was passed and approved with the following vote: Garrett, Hummell, Kelly, Leal, Marez, and Martinez, voting "Aye "; Cooper, Elizondo, and McCutchon were absent. Mayor Garrett called a recess until 5:00 p.m. * * * * * * * * * * * ** Mayor Garrett opened discussion on Item 14 regarding a report on West Oso independent School District (WOSD). Director of Education Initiatives JoAnn Hooks explained that this item is part of a series of presentation to allow each school district an opportunity to provide an overview of the districts educational landscape. Superintendent of WOSD Dr. Crawford H. Helms introduced the presentation members as follows: Assistant Superintendent Dr. Mary Jane Garza, Board President Velma Rodriguez, Board Secretary Diana Cantu - Guerrero, and Trustee Cella Boyd. Dr. Crawford announced that Board Vice President Lucas Jasso and Trustees George Barrera, Shirley Jordan, and Jose Lopez were unable to attend the meeting. -17- Minutes — Regular Council Meeting September 30, 2008 — Page 12 Ms. Rodriguez announced that WOSD Board of Trustees was named as Honor Board by the Texas Association of School Boards. Ms. Rodriguez provided a brief history of West Oso and the campuses that comprise the school district. Ms. Cantu - Guerrero spoke regarding district's demographics; the accountability ratings; the success of the full day pre- kinder program; and the reading first data results. Dr. Garza provided a brief overview of the academic scoring for reading, math, social studies, and science. Ms. Boyd spoke regarding the summer camp programs. Dr. Helms presented information on the drop out rate; the academy for over age students; the connections for education and workforce readiness; the 2008 -2009 budget; bond issues; and challenges. The following topics pertaining to this item were discussed: whether the new high school has an auditorium; the positive attitude of the faculty and students; and the increased improvement in academic testing. Dr. Helms invited the Council to attending the Citizens for Education for Excellence seminar scheduled at 6:00 p.m. on October 14`h at West Oso High School. There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 5:32 p.m. on September 30, 2008. * * **** * ** ** ** -18- 2 COMMISSION ON CHILDREN & YOUTH - One (1) vacancy with term to 5 -01 -10 representing the following category: Youth Representative. DUTIES: To support a comprehensive system of services and advance policies to meet the needs of Corpus Christi's children, youth and their families. COMPOSITION: The commission shall consist of 14 members appointed by the City Council. One member shall be representative of each of the following fields: Health, Social Service, Religion, Legal, Law Enforcement, Education, Business, Youth Services, Sheriff's Office, and the District Attomey's Office. One member shall be a youth representative from 16 to 21 years of age at time of appointment. Each appointee shall have demonstrated interest in the welfare of children or youth through occupation or through association with community -based organizations. (On 10- 10 -95, Council approved the addition of a Police Officer to serve as an Advisory Member to be appointed by the Police Chief.) ORIGINAL MEMBERS TERMS APPTD. DATES Debbie Espinosa (Health) 5 -01 -09 8 -12 -08 Miles Toren (At Large) 5 -01 -09 9 -20 -05 Amanda Stukenberg (At Large) 5 -01 -10 6 -08 -04 Rosa M. Gonzalez (Social Services) 5 -01 -11 5 -13 -08 Robert Mirabal, Jr. (Religion) 5 -01 -10 5 -13 -08 Laura Spear Smith (Business) 5 -01 -11 5 -17 -05 Guy Nickelson (Youth Services) 5 -01 -09 11 -08 -05 Mary Jane Garza (Education), Chair 5 -01 -10 6 -13 -06 Lorenzo Knowles (At Large) 5 -01 -11 8 -12 -08 Isaac Valencia (Law Enforcement) 5 -01 -11 5 -13 -08 Fran Willms (Legal) 5 -01 -09 9 -25 -07 ** *Caitlin Martin (Youth Rep.) 5 -01 -10 1 -10 -06 Rita Morales (D.A.'s Office), Vice -Chair 5 -01 -09 9 -12 -06 Capt. Johnny Oelschlegel (Sheriff's Office) 5 -01 -10 3 -11 -08 Capt. Tim Wilson (Police Off) Advisory 12 -06 -95 INDIVIDUALS EXPRESSING INTEREST Ariana Cordero Senior, West Oso High School. Activities include: National Honor Society, Student Council, and Interact Club. (Youth) (10/3/08) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —21— Randall Lopez Senior, West Oso High School. Activities include: Student Council, National Honor Society, Interact Club, and Upward Bound. (Youth) (10/3/08) Chandace Tryon Senior, West Oso High School. Activities include: National Honor Society and Varsity Sports. (Youth) (10/3/08) —22— ETHICS COMMISSION — Three (3) vacancies with terms to 10- 01 -11. (Appointed by 2/3 vote of the full council) DUTIES: In addition to having jurisdiction of complaints involving any "city official ", the duties of this commission are to prepare and publish pamphlets and other materials explaining the duties of individuals subject to the code of ethics; review all statements and reports filed with the city; annually review the code of ethics and make appropriate recommendations to the city council; review all public opinions related to the code of ethics that are issued by the city attorney; prepare and disseminate a report listing all campaign contributions and expenditures for each candidate within 30 days following the deadline for filing the last campaign finance reports for each city council election. The commission shall have such meetings as may be necessary to fulfill its responsibilities. The chairperson or any three (3) members may call a meeting provided that reasonable notice is given to each member. The commission shall meet at least once a year. The date of the annual meeting shall be in September. The commission shall comply with the Texas Open Meetings Act. COMPOSITION: Nine members appointed by a two- thirds vote of the full council. Nominations are to be solicited from a wide variety of professional and community organizations in the city but interested individuals may also submit their names for consideration. Initially, the terms of three members shall be one year, and the initial terms of another three terms shall be two years. The persons having such shorter terms shall be determined by lot. No holding over is permitted except as expressly provided in the code of ethics. The commission shall elect a chairperson and a vice - chairperson. ORIGINAL MEMBERS TERM APPTD. DATE Linda Figueroa 10 -01 -09 5 -10 -05 Harlan Heitkamp 10 -01 -09 11 -11 -03 *Dr. Nicholas Adame 10 -01 -08 10 -25 -05 * *Miguel Carranco 10 -01 -08 9 -19 -06 Laura Hebert 10 -01 -10 11 -13 -07 Joe Guzman 10 -01 -09 10 -14 -03 Rick Marcantonio 10 -01 -10 12 -14 -04 Robert N. Corrigan. 10 -01 -10 10 -14 -03 *James Richard Cramer, Chair 10 -01 -08 10 -14 -03 (Note: The Ethics Commission is recommending the new appointment of Rebecca Esparza and as an alternate, Randall Barrera. They are also recommending the reappointments of Dr. Nicholas Adame and James Richard Cramer.) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —23— ATTENDANCE RECORD OF MEMBERS SEEKING REAPPOINTMENT NO. OF MTGS. NO. % OF ATTENDANCE NAME THIS TERM PRESENT LAST TERM YEAR Dr. Nicholas Adame 5 4 80% James Richard Cramer 5 5 100% OTHER INDIVIDUALS EXPRESSING INTEREST Kay H. Aeby Randall Barrera Aaron Castro Rebecca Esparza Ryan Evans Self - employed, Administrator. Activities include: Past American Cancer Society Volunteer and Board Representative. Former Member of the Downtown Redevelopment Committee. (6- 15 -07) Attorney, Self - Employed. Received BA from Southwest Texas State University and Juris Doctor from Texas Southern University. Activities include: Hispanic Chamber of Commerce, America' Registry of Outstanding Professionals, Texas Trial Lawyers Association and the Texas Bar Association. (10- 19 -07) Operations, KZTV 10. Currently a Student at Texas A &M University- Corpus Christi. Involved in Local Politics. Recipient of Employee of the Month at Action Ten News. (9 -9 -08) Public Relations Consultant. Received Associate in Arts, Journalism from Del Mar College, Bachelor of Business Administration, Marketing and Master of Business Administration from University of the Incarnate Word, San Antonio. Activities include: Board Member — American Cancer Society and Co- founder and co- facilitator, M.D. Anderson Cancer Support Group. (11- 08 -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) -24- Angie Flores Jack Gordy Michele Hammock James L. Hinnant Melissa Hofstetter Gerard Navarro, Jr. Joe Ortiz Leasing Agent, Landlord Resources. Attended Massey Business School, University of Shopping Centers and is a Licensed Real Estate Agent. Activities include: Boys & Girls Club of Corpus Christi Board, Leadership Corpus Christi Board of Governors, Heart of Corpus Christi Board Member and Downtown Redevelopment Committee. (10- 4-07) Retired military. High school graduate plus one year at Del Mar College. (11- 06 -07) 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) Attended College. Activities include: Neighborhood Initiative Program — Neighborhood Initiative Council and Neighborhood Initiative Program #17 Leader. (9 -2 -08) Spaulding for Children. (9- 14 -07) Owner, Secretarial Solutions. Currently attending Texas A &M University — Kingsville pursuing a degree in social work.. Activities include: Oso Park Neighborhood Association, Court Appointed Special Advocates (CASA), National Honor Society of Social Workers, and Substitute Teacher, Corpus Christi Independent School District. Currently attending Texas A &M- Corpus Christi. (5- 19 -08) Self - Employed, Residential Designer and Building Consultant. Attended Del Mar College and Granthem University. Activities include. National Civil Rights Director American GI Forum and District Director LULAC. (4 -9 -08) Robert E. Powell Retired. Received a B.S. in Civil Engineering. (2- 19 -08) —25— Woodrow Mac Sanders Michael Shooshan Medical Social Worker, Texas Department of State Health Services. Received Bachelor of Arts from Texas A &I University, Kingsville, Master of Science- Psychology /Counseling and Guidance from Corpus Christi State University and Post Masters Degree work toward ED.D. Activities include: Licensed Baccalaureate Social Worker, Adjunct Professor of History at Coastal Bend College, and Board Member of Selective Services System. (12- 10 -07) 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) —26— LEADERSHIP COMMITTEE FOR SENIOR SERVICES — Two (2) vacancies with terms to 2 -1 -09 and 2 -1 -10 representing the following categories. 1 — Community and 1 — Direct Service Agency. DUTIES: To assist the Senior Community Services division staff in the development of comprehensive senior citizens program plans; to advise the SCS division staff of the needs for services according to locally conceived priorities; to review and evaluate SCS operations; to increase recognition of volunteers and public awareness of the division by coordinating and planning special events; and to coordinate and plan fund raising activities to benefit SCS division goals. COMPOSITION: Fifteen (15) members representing the following categories: 2 - Senior center participants, 2 - Retired and Senior Volunteer Program (R.S.V.P.) volunteers, 2 - Senior Companion Program (S.C.P.) volunteers, 3 - Direct service agencies, and 6 - Community representatives. Initially, eight (8) members shall be appointed for a term of one -year and seven (7) members shall be appointed to two -year terms. ORIGINAL MEMBERS TERM APPTD. DATE George B. Driskell (Agency) 2 -01 -09 4 -08 -08 Alan D. Bligh (Community) 2 -01 -09 2 -12 -02 Jane Haas (Agency) 2 -01 -10 2 -12 -08 Marion Ball (Senior ctr.) 2 -01 -09 2 -12 -02 Miltan A. Martiz (Senior ctr.) 2 -01 -10 3 -21 -06 Kathy Harron (R.S.V.P.), Chair 2 -01 -09 2 -15 -05 Donna Marie Cisneros (R.S.V.P.) 2 -01 -09 2 -10 -04 Hilarion Villanueva (S.C.P.) 2 -01 -10 4 -08 -08 Linda Leach (S.C.P.) 2 -01 -09 2 -12 -08 Dotson G. Lewis, Jr. (Community) 2 -01 -09 4 -08 -08 * * * *Ronnell Bright (Community) 2 -01 -10 2 -12 -08 Vicki N. Garza (Community) 2 -01 -10 8 -26 -08 ** *Judy McNamara (Agency), Vice Chair 2 -01 -09 2 -20 -07 Guy Williams (Community) 2 -01 -10 2 -20 -07 Lisa Pollakis (Community) 2 -01 -10 2 -12 -08 (Note: The Leadership Committee for Senior Services is recommending the new appointment of Theresa M. Swirenko (Direct Service Agency). They are also recommending Ruth Perez as their first choice and Rita Padron as their second choice for the Community Representative slot.) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —27— OTHER INDIVIDUALS EXPRESSING INTEREST Nancy Calcaterra Sherri Darveaux Servando R. Dimas Andrea B. Green Rick Greenfield Food Service, Flour Bluff Independent School District. Formerly Managed Medical and Chiropractic Offices and did Medical Insurance Billing. Received Operating Room Technician Certificate and Attended College. Recipient of Employee of the Month at Flour Bluff Independent School District. (Community) (2 -4 -08) Retired, Former Librarian, Engineering Training Developer, and Trainer Business Software Applications. Received Master of Arts in Education, from University of Texas at San Antonio, Texas and Master of Library Science from University of Arizona. Attended Executive Program at Anderson Graduate School of Business, University of California, Los Angeles. Activities include: Member of National Library Science Honor Society and Local Antiquing Group. (Community) (1- 25 -08) Retired, Director of Foster Grandparent Program for Corpus Christi State School. Attended College. Activities include: Planning and Decision Making Team — Shaw Elementary School and Mary Grett Memorial School, Lindale Senior Center Member, and Volunteer at Driscoll Children's Hospital. (Community) (10 -6 -08) Tax Professional, H & R Block. Received B.A. from Mount Holyoke College, South Hadley, Massachusetts, and M.S. from Syracuse University, Syracuse, New York. Activities include: Southside Evening Toastmasters. (Community) (1- 9-08) Program Manager Engineering Services, MANCON, Inc. Received A.A. in Liberal Arts, B.A.A.S. in Industrial Technology, and M.A. in Organizational Management. Activities include: Qualified Mediator for State of Texas. (Community) (1 -8 -08) —28— Cecilia G. Huerta Adelfa M. Martinez Rita Sonia Padron Ruth C Perez Theresa M. Swirenko Consultant. Former Counselor and Teacher. Received Bachelors of Arts in English and Masters of Arts Guidance and Counseling from Texas A &I University. Activities include: Association of School Counselors, Hispanic Women's Network of Texas Corpus Christi Chapter, Junior Achievement Volunteer, Upward Bound Field Representative, and Counselor. Formerly Served as a Member of the Brewster County Child Welfare Board and the San Antonio City South P -16 Partnership. (Community) (8- 18 -08) Retired. Received Associates Degree in Business. Activities include: Volunteer at Lindale Sr. Center, Sr. Site Council President, Active in Politics, PTA, Choir Member at St. Cyril Methodius Church, and Jail Ministry at Nueces County Jail. (Community) (1- 14 -08) Retired, Acute Dialysis Nurse, Renal Care Group. Received Vocational Nurse Degree from Del Mar Technical School, Certified Hemodialysis Practitioner and Pediatric Vocational Nurse. Activities include: Youth Coach for YMCA and Park and Recreation Boys Basketball Programs, Corpus Christi International Airport Ambassador, Member of RSVP, and Board of Nephrology Examiners Nursing and Technology — Policy and Procedures Chair. Recipient of Leadership Awards with RSVP and Senior Services. (Community) (2- 20-08) Financial Counselor, Christus Spotlit Memorial. Attended Del Mar College. Activities include: State Democratic Convention Delegate. (Community) (7- 25 -08) Social Work, Nurses on Wheels/Hospice. Received Bachelors and Masters in Social Work. Activities include: NASN and South Texas Social Work Society. (Direct Service Agency) (10 -3 -08) —29— REGIONAL HEALTH AWARENESS BOARD — One (1) vacancy with term to 10- 01-11 representing the following category: 1- Community Member. DUTIES: To ensure that opportunities exist for quality dialogue by citizens of the Coastal Bend on the issues impacting health, safety, environment, and life quality. COMPOSITION: Six (6) community members representing a cross - section of health, environmental, and social interest. Two of these community members will be appointed by the City Council, City of Corpus Christi, two members will be appointed by the Commissioners Court Nueces County, and two members will be appointed by the Commissioner Court San Patricio County. In addition, the following organizations may appoint representative members: 1 -City of Corpus Christi, 1 — Nueces County, 1 — San Patricio County, 2 — Port of Corpus Christi, 1 — Texas A & M — Corpus Christi, 1 — Texas A & M — Kingsville, 1 — Texas Commission on Environmental Quality, Region 14 (ex- officio /non- voting), 1 — U.S. Environmental Protection Agency, Region VI (ex- officio /non- voting), 1 - City of Corpus Christi/Nueces County Health Department (ex- officio /non - voting) and 1 — San Patricio Health Department (ex- officio /non- voting). Each governing body will appoint one of their original community member appointees to a two -year term and the other appointee to a three -year term. MEMBERS Dr. James Mobley (San Patricio — Comm. Rep.), Chair Tom Ballou (Port Industries) Margie Rose (City Representative) * *Lillian Murray (City — Community. Rep.) Angela Womack (City — Community Rep.) Abel Alonzo (County — Community Rep) Lionel Lopez (County — Community Rep.) Alonso Molina (San Patricio — Community Rep.) Dr. Nina Sisley (County Representative) Dennis Roberts (San Patricio Representative) Rich Tuttle (Port Industries) Dr. Mary Jane Hamilton (TAMU — Corpus Christi) Dr. Yifang Zhu (TAMU — Kingsville) Annette Rodriguez (Nueces County Health Admin) Delores Bacon (San Patrico Administrator) Linda Falk (Environmental Protection Region 6) Susan Clewis (TX Comm. on Environmental Quality) Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation -30- TERM 01 -01 -09 01 -01 -07 01 -01 -11 10 -01 -08 10 -01 -09 10 -01 -08 10 -01 -06 10 -01 -09 01 -01 -09 10 -01 -08 10 -01 -11 01 -01 -09 01 -01 -10 Ex- officio Ex- officio Ex- officio Ex- officio ORIGINAL APPTD. DATE 10 -01 -05 10 -01 -03 03 -08 -05 09 -23 -03 10 -25 -05 10 -01 -05 10 -01 -03 10 -01 -03 10 -01 -05 10 -01 -05 01 -01 -07 10 -01 -05 01 -01 -07 INDIVIDUALS EXPRESSING INTEREST Rudy (Rudolfo) A. Adame Registered Nurse. Received BA from Corpus Christi State University and Nursing Program and Del Mar College. Served in the Army and Unites States Air Force. Activities include: Selective Service Board. (10 -6 -08) Rebecca Esparza Laura L. Hebert Dora L. Hidalgo Public Relations Consultant. Received Associate in Arts, Journalism from Del Mar College, Bachelor of Business Administration, Marketing and Master of Business Administration from University of the Incarnate Word, San Antonio. Activities include: Board Member — American Cancer Society and Co- founder and co- facilitator, M.D. Anderson Cancer Support Group. (11- 08 -07) Owner and President, Hebert Insurance Group, Inc. Past President of CBAHU and Past President of Delta Gamma, RCIA teacher, and member of Eastern Star 354. (6 -7 -07) 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) Edward Kownslar Librarian, Texas A &M University - Corpus Christi. Received BS in Journalism from University of Kansas, MS in Library Science from University of North Texas, and Master of Public Administration from Texas A &M University - Corpus Christi. Activities include. Board of Director, Family Counseling Services of Corpus Christi, 2004 -2006, Texas Library Association, Various Committees, 1999 -2007, and American Library Association, Various Committees, 1998- Present. (6- 15 -07) Patricia E. Mattocks Director of Program Services, March of Dimes. Activities include: League of Women Voters — Past Vice - President and Nominating Committee, Zonta, and St. Paul United Church of Christ — Women's Ministry. (9- 12 -07) —31— RoseMarie Olivarez Charles Pendlyshok Ted Schroeder Judith Ann Sisson Attended College. Activities include: Neighborhood Initiative Program — Model Block Program Leader and Neighborhood Initiative Council. (9 -2 -08) Area Manager, Human Military Healthcare. Received B.S. from Widener University, M.A. from Incarnate Word University, and M.B.A. from Widener University. Activities include: Adjunct Professor at Texas A &M University - Corpus Christi, Certified Senior Advisor, Licensed Insurance Producer and Volunteer and Sailing Instruction. (2- 18 -08) Administrator/Instructor, Gulf Coast Food Manager Certification Program. Received Degree in Business Management from University of Kentucky. Past President of Elizabethtown, Kentucky Jaycees and Lions. (2- 22 -08) Owner, Laguna Shores Pet Salon. Received a B.S. in Pharmacy. Attending Texas A &M University - Corpus Christi. Founded the Coastal Bend Small Breed Rescue. Activities include: Former Volunteer of Lost Pet Hotline and Celebrate Animals Event Planning Committee. Received the Jefferson Award. (10 -2 -07) —32— TRANSPORTATION ADVISORY COMMITTEE — One (1) vacancy with term to 4- 30-09. DUTIES: To be responsible for public advisory jurisdiction and citizen traffic safety investigation, traffic accident, injury and damage prevention in the City; developing and implementing coordinated traffic safety programs which meet local needs; acting in an advisory capacity to the City Council and the City Manager in the coordination of traffic safety activities of the official agencies and departments of the City; promoting public acceptance of official programs proposed or initiated by the City; fostering public knowledge and support of traffic law enforcement and traffic safety problems; cooperating with public and private school systems in promoting traffic safety training aids in the schools; promoting the education of the public in traffic safety and, generally assisting in the overall reduction of traffic deaths, injuries, damage, and accidents on the City's streets. COMPOSITION: Nine (9) members appointed by the City Council for three -year terms to provide advice on transportation and traffic safety matters. One member has traditionally been the incumbent security officer at the Naval Air Station. Elects Chairman and Vice - Chairman annually. ORIGINAL MEMBERS TERM APPTD. DATE William Green, Chair 4 -30 -10 5 -11 -04 Karen Beard 4 -30 -09 5 -30 -06 Jerry Trevino 4 -30 -11 5 -13 -08 Glenn R. Jones 4 -30 -10 11 -13 -07 Eloy Barrera Soza 4 -30 -10 11 -13 -07 Curtis A. Rock 4 -30 -11 5 -30 -06 * ** *David V. Seiler 4 -30 -09 5 -13 -03 Daniel Carrizales 4 -30 -09 12 -20 -05 Damien Lamont Holmes (NAS Security Officer) 4 -30 -11 11 -13 -07 Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation -33- INDIVIDUALS EXPRESSING INTEREST Sheila Cudd Thomas L. Knight Roy Ortega, Jr. Joe Ortiz Carl L. Powell Retired, Del Mar College. Received Masters' Degree, Licensed Professional Counselor, and Registered Professional Educational Diagnostician. Formerly served on Del Mar College Committees. Past Member of Sparkling City Chapter of Sweet Adelines. (9 -8 -08) Owner — President, Fiesta Margaritas. Received Bachelor of Arts Degree in Political Science/Public Administration/History and Secondary Education Teaching Certificates in American Government/History and Special Education. Received Young Republican "Man of the Year" 1975 and was in Del Mar College Hall of Fame 1973. (4 -3 -07) Owner, Victorian Hall LLC. Attended numerous Tech Schools and Symposiums. Interested in community involvement. (9- 24 -07) Self - Employed, Residential Designer and Building Consultant. Attended Del Mar College and Granthem University. Activities include: National Civil Rights Director American GI Forum and District Director LULAC. (4 -9 -08) Retired, Bureau of Prisons. Received B.S. in Psychology from Loyola University. Activities include: CASA/ Health and Human Services Volunteer. (1- 11 -08) Dennis Richard Slowinski Instructor Pilot, United States Air Force. Received B.A. from Norwich Military University, United States Air Force Undergraduate /Graduate Pilot Training from Columbus Air Force Base and Corpus Christi Naval Air Station. 2008 Graduate of United States Air Force Squadron Leadership Officers School and Currently Pursuing Master of Professional Studies in Community and Economic Development. Activities include: Unites States Air Force Association, South Texas Chapter of the Military Officers Association, Coastal Bend United Way, South Texas Special Olympics, and Lead Organizer for 208 National Night Out/Neighborhood Watch Initiative. Recipient of United States Air Force Air Medal for Bravery in Combat and Commendation Medal. (10 -7 -08) —34— WEED AND SEED STEERING COMMITTEE - One (1) vacancy with term to 11- 01-09 representing the following category: 1- Flour Bluff Site. (Must live in 78418 Zip Code in Targeted Site Area) DUTIES: Provide program oversight and make recommendations to City Council. COMPOSITION: A total of eleven core voting members. The Department of Justice (DOJ) requires that 25% of the Steering Committee be made up of residents. The City Council shall appoint the required amount of residents to insure the program is in compliance: 2 - from Site 2 (West) and 3 — from Site 3 (Flour Bluff). One core representative shall be appointed by each of the following entities: The United State's Attorney's Office, Corpus Christi Police Department, Flour Bluff ISD, Corpus Christi ISD, Housing Authority, County Attomey's Office, District Attorney's Office, Drug Enforcement Administration (DEA), a faith based person, a business person, and a youth representative. A Weed and Seed Program staff member and the Park and Recreation Department Program Director shall serve as ex- officio, non - voting members. The U.S. Attorney representative will serve as Chairperson of the Committee. The Chairperson votes only in the event of a tie and becomes the tiebreaker. This committee will expire on September 30, 2008, unless funds for the program end sooner. MEMBERS Debra Hohle (U.S. Atty.), Chairperson ** *Judy Hendricks (Flour Bluff Site) Lori Gianotti (Flour Bluff Site) Ruben Gonzales (Flour Bluff Site) Cmdr. Mike Walsh (CCPD) William Grant (DEA) Georg Johnson (CCISD) Richard Franco (Housing Authority) Laura Garza Jimenez (County Atty.) Julie Carbajal (Flour Bluff ISD) Gail Gleimer (District Attorney's Office) Mike Lohman (Faith Based) Dr. Maurice Portis (Business Member) Vacant, (Youth Member) Harold Smith (Weed and Seed) Sally Gavlik (Park and Recreation) TERM Ex- officio, voting 11 -01 -09 11 -01 -09 11 -01 -09 Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, voting Ex- officio, nonvoting Ex- officio, nonvoting Legend: *Seeking reappointment * *Not seeking reappointment ** *Resigned * ** *Exceeded number of absences allowed by ordinance * * ** *Has met six -year service limitation —35— ORIGINAL APPT. DATE 3 -25 -08 12 -18 -07 12 -18 -07 INDIVIDUALS EXPRESSING INTEREST - (All Applicants are 78418 Residents in Targeted Site Area) Michele Hammock Wayne C. Meyr Judith A. Reader 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) Market President, Texas Champion Bank. Received BBA/Finance from The University of Texas, Austin, Texas. Activities include: Bay Area Fellowship Hospital Ministry and Past President of Buckingham Estates Homeowners Association. Recipient of 2003 Outstanding SBA Lender for this SBA Region. (2- 19 -08) Retired. Received BA in Mental Retardation and Elementary Education and MA in Reading. Activities include: Audubon Outdoor Club and Coastal Bend Audubon. (2- 18 -08) James D. Roberts Rigger, Corpus Christi Army Depot. Served in the United States Army. Attended Trade School. (2- 18 -08) —36— 3 Requested Council Action: 10/14/08 Alternate Date: 10/21/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving a service agreement with The Doctors' Center of Corpus Christi, TX for drug testing services, in accordance with Request for Proposal Number BI- 0071 -08, for an estimated three -year expenditure of $326,310 of which $81,577.50 is required and budgeted for the remainder of FY 08 -09. The term of the service agreement will be for three years with an option to extend for up to two additional twelve -month periods subject to the approval of the supplier and the City Manager or his designee. This service will be used by all City departments. Funds are budgeted in the Liability & Employee Benefits Fund. ****************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: Drug testing services will be utilized to fulfill requirements for drug and alcohol testing of City employees in compliance with established City alcohol and drug testing policies. Drug testing services provided will include collection, testing, laboratory and medical review officer services. Background: The City requires approximately 3,032 drug tests and 319 breath alcohol tests annually, spread across the following categories: pre- employment, return-to -duty, random, reasonable suspicion, post- accident, pre - assignment and post - firearm discharge. Award Basis: On May 20, 2008, the City awarded a contract for drug testing services to Concentra Health Services d.b.a. Concentra Medical Centers (Concentra) of Addison, TX under the terms of Request for Proposal Number BI- 0071 -08. One of the contractual stipulations in that agreement is that Concentra shall provide a minimum of two collections sites. Concentra closed one of its two facilities in Corpus Christi on September 19, 2008, thereby causing Concentra to be in breach of contract. The City has provided Concentra notification of same and provided for a contract termination date of October 19, 2008. Therefore, it is necessary to secure drug testing services from another source that will commence on October 20, 2008. The Doctors' Center can meet this time requirement. The aforementioned Request for Proposal was originally advertised and issued to sixteen service providers. Three proposals were received, one from Concentra, one from the Doctors' Center and one from Pinnacle Medical Management Corporation that was deemed non - responsive as it did not meet the requirement to provide a minimum of two collection sites. Proposals were originally evaluated across four major criteria: Technical Solution, Proposer's Profile & Qualifications, Cost and Exceptions. An evaluation team comprised of representatives from Human Resources and Purchasing reviewed the proposals and scored each according to the criteria above. Input was also originally obtained from the Police Department regarding Medical Review Officer services. The Doctors' Center is recommended for award as it eamed the second highest overall score and is the only other responsive proposer. -39- Pricing Analysis: Pricing for this service will increase approximately 24% over existing contract pricing through Concentra. Total for Remainder of FY 08 -09 iability & Employee Benefits Fund 5611- 40540 - 537341 Michael Barrera Assistant Director of Financial Services -40- $81,577.50 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER - PAUL J. PIERCE Three -Year Contract Request for Proposal No.:BI- 0071 -08 Drug Testing Services Summary Evaluation Matrix Evaluation Criteria Technical Solution Proposer's Profile & Qual. Fee Schedule Exceptions Total Score Total Three -Year Award Amount Maximum Score 35 20 40 5 THE DOCTORS CENTER Corpus Christi, TX 29.8% 18.5% 32.2% 5.0% 100 -41- 85.5% $326,310.00 Requested Council Date: 10/14/08 Alternate Date: 10/21/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving a supply agreement with Vulcan Construction Materials, LP, San Antonio, Texas, for approximately 3,250 tons of cold mix -cold laid asphalt and approximately 7,150 tons of pre- coated aggregate, in accordance with Bid Invitation No. BI- 0174-08 based on only bid for an estimated semi -annual expenditure of $454,851. The term of the contract will be for six months with an option to extend for up to five additional six month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by Street and the Utility Departments in FY 08 -09. ****************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: Previous Contract: Pre - coated aggregate is used with liquid asphalt binder to seal coat streets, which extends the life of the riding surface. Cold mix-cold laid asphalt is used to repair streets after utility cuts are made by the Utility Departments. The Street Department uses the material as an overlay and as an alternate patching material when regular hot mix asphalt is not available. The option to extend the previous contract was not exercised due to vendor's inability to hold pricing, therefore requiring the City to issue new bid invitations. Bid invitations Issued: Six Bids Received: One Price Analysis: Compared to the previous contract, pricing has increased 28 %. Award Basis: Only Bid Funding Fund Account Amount General Fund 520130- 1020 -12410 $76,263 General Fund 520130- 1020 -12420 5,526 General Fund 520130 -1020 -12430 373,062 Assistant Director of Financial Services —45— Total: $454,851 -1 0 N a;efai66y pejeo0 -eid 1 01 1 W 0 01 01 O 0 0 0 0 Q 0W"0 CO m v C CD a o fD W a a 7 1 • 0 < NOIldI IOS3a C cn< zr DD to [» en Z c0 co N Z O C co A A N =. O cn XC co to en A N is �1 Z N 1 V v a -' -' nv m fn 00 1 O 4. N A (071 a O O O O O O O O N a -46- , 01 A�.a 00 p� 7 coo -o up a Z 0 fiLs �'p O f 0 a CO 01 N N O r W 90 c co D ^O CO UJ 0 <c) con O z- 5 Requested Council Action 10/14/08 Alternate Date 10/21/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the lease purchase of two (2) Rear Steer Brush Loaders from Santex Truck Center, San Antonio, Texas in the amount of $265,216. The award is based on the cooperative purchasing agreement with the Houston - Galveston Area Council of Governments (H -GAC). These units are replacements to the fleet and will be used by the Solid Waste Department. Financing for the rear steer brush loaders will be provided through the City's lease purchase financing program. ****************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: Basis of Award: Price Comparison: Funding: The brush loaders will be used by the Solid Waste Department as part of the City wide daily pickup of brush and heavy debris. The rear steer brush loader is a specialized type of brush loader, which allows for quick mobilization to job sites and allows the operator to drive the truck and operate the brush loader from a single position. These two features have proven to be very effective in the operations of the department. The two (2) rear steer brush loaders will be purchased through the cooperative purchasing agreements with H -GAC. H -GAC acts as a purchasing agent for participating members through the Inter -local Cooperation Act and abides by all Texas statutes regarding competitive bidding requirements. The City purchased a similar rear steer brush loader in 2006 with a unit price of $120,790.00. The current unit price is $132,608.00. The increase is a 5% per year due mainly to higher steel costs. The two (2) rear steer brush loaders will be funded through the City's lease purchase financing agreement for a sixty-month period. The estimated interest rate is 3.5 %. The actual interest rate will be determined after acceptance of the vehicles. The estimated annual payment is $57,896.88. Total estimated cost over the sixty -month period, including principal of $265,216.00 and interest of $24,268.40, is $289,484.40. General Fund — Solid Waste (5 months) 530190- 1020 -12511 Capital Outlay Item No. 22 _. Michael Barrera Assistant Director of Financial Services —49— FY 08 -09 $24,123.70 Bid Invitation No.: BI -0015 -09 Maria Pedraza 10/14/2008 Rear Steer Brush Loaders City of Corpus Christi Purchasing Division Bid Tabulation Qty unit Santex Truck Center San Antonio Texas Peterson RS3 Rear Steer 2 Brush Loader -50- each Unit cost Total $132,608 $265,216 6 Requested Council Action: 10/14/08 Alternate Council Date: 10/21/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the purchase of one (1) vactor truck from Grande Truck Center, of San Antonio, Texas in the amount of $279,515. The award is based on the cooperative purchasing agreement with the Texas Local Government Purchasing Cooperative (TLGPC). The vactor truck will be used by the Wastewater Department. The unit is a replacement to the fleet. Funding is available from the FY2008 -2009 Capital Outlay Budget in the Maintenance Services Fund. ****************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Purpose: The vactor truck will be used by the Wastewater Department to clean and maintain its 1,250 miles of sewer collection main lines, six inches and larger in diameter. The vactor truck will be delivered to the City in the summer of 2009. Local manufacturers' dealers will provide warranty support service. The unit is a replacement to the fleet. Basis of Award: The vehicles will be purchased through the cooperative purchasing agreement with the TLGPC. TLGPC is administered by the Texas Association of School Boards (TASB) and co- sponsored by the Texas Municipal League (TML) and the Texas Association of Counties (TAC). TLGPC acts as an independent agency awarding exclusive cooperative purchasing contracts for its members. Price Comparison: The City purchased a similar vactor truck for the Wastewater Department in FY07 /08 with a price of $263,011. The current unit price is $279,515. The purchase price of the vactor truck has increased by 6.3% from last year's purchase. Funding: Maintenance Services - Wastewater 550020 -5110 -40120 Capital Outlay Item No. 75 MichaetBarrera Assistant Director of Financial Services —53— FY08 -09 $279,515. Total: $279,515. <cn CD m o m y0 -s r 1 M J co N co 0 m v oo v co A m v 11: *. d • 5 a a 0 0 1 m NOI1dINOS30 m n c -54- O W -0 0 c {c o X=0 • 000 n -W0xi mv� O r <W n ��n O rOZ co Z Z — aD v m0 co 7 Requested Council 10/14/08 Alternate Date 10/21/08 AGENDA MEMORANDUM RECOMMENDATION: Motion approving supply agreements with the following companies for the following amounts, for vehicle and equipment tires in accordance with Bid Invitation No. BI- 0204 -08, for an estimated annual expenditure of $471,676.44. Awards are based on low bid and only bid, on a multiple progressive basis. The term of the contracts will be for twelve months with an option to extend for up to two additional twelve -month periods subject to the approval of the suppliers and the City Manager or his designee. Funds have been budgeted by Maintenance Services and Aviation in FY 2008 -2009. Wingfoot Commercial Tire Systems, LLC Corpus Christi, TX Items: 1.2, 1.3, 1.5, 1.6, 1.8 -1.12, 1.15 — 1.17, 1.19, 2.2 — 2.4,2.6 -2.8, 2.10- 2.12,2.14,3.3,4.2,4.3 Total: $398,848.44 Grand Total: $471,676.44 Strouhal Tire Corpus Christi, TX Items: 1.13, 2.5, 2.13 Total: $72,828.00 BACKGROUND: Purpose: Previous Contract: Bid Invitations issued: Bids Received: Price Analysis: Award Basis: Vehicle and equipment tires are inspected for wear or damage during routine scheduled maintenance work. Tires, which are damaged or worn beyond acceptable safety standards, are replaced with new tires. Most city vehicles operate under extreme conditions and as a result, many tires are replaced due to damage. The option to extend the current contract is not being exercised due to the vendor's inability to maintain current pricing. Seventeen Two Pricing has increased approximately 12% since the last bid of 2007. Only Bid — Items 1.2, 1.3, 1.5, 1.6, 1.8 -1.12, 2.2, 2.3, 2.7, 2.10, 2.11, 3.3, 4.3 Low Bid — Items 1.13, 1.15 -1.17, 1.19, 2.4 -2.6, 2.8, 2.12 -2.14, 4.2 Contracts will be established on a multiple progressive basis with each bidder to provide the City with backup suppliers for each tire bid. The bidder who submitted the low bid per item is designated primary supplier. If the primary supplier does not have a particular tire in stock, the City will contact the supplier that submitted the 2nd lowest bid. This process is utilized to ensure the City has a readily available source of tires. —57— Funding: Maintenance Services 5110- 40180 - 520210 $467,176.44 Aviation 4610- 35005 - 530100 1,850.00 4610 - 35030 - 530100 200.00 4610- 35040 - 530100 800.00 4610- 35050 - 530100 1,650.00 Michael Barrera Assistant Director of Financial Services Total $471,676.44 -58- Requested Council 10/14/08 Alternate Date 10/21/08 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: MARIA GARZA Item Description 1.0 Passenger and Light Truck Tires Passenger - Radial 1.1 P- 235/75R x 15, Black 1.2 P- 235/70R x 16, Black 1.3 P- 255/70R x 16, Black 1.4 P- 215/60R x 16, Black 1.5 P- 205/70R x 15, Black 1.6 P- 205/75R x 15, Black 1.7 P- 205/70R x 14, Black 1.8 P- 205/75R x 14, Black 1.9 P- 215/70R x 14, Black 1.10 P- 205/65R x 15, Black 1.11 P- 215/70R x 15, Black 1.12 P- 225/70R x 15, Black Manufacturer: Brand: Bid Tabulation Bid Invitation No. BI- 0204 -08 Vehicle Equipment Tires Qty Unit Wingfoot Commercial Tire Systems, LLC Corpus Christi, TX Strouhal Tire Corpus Christi, TX Unit Extended Price Price Unit Extended Price Price Light Trucks 1.13 750 x 16, URange Load R, Tubeless, Highway Manufacturer: Brand: ' 1.14 1.15 1.16 1.17 1.18 1.19 1.20 Light Truck - LT 225/75R x LT 215/85R x LT 225/75R x LT 235/85R x LT 245/70R x LT 245/75R x 9.50R x 16.5, Manufacturer: Brand: Radial 16, URange Load D, TL HWY 16, URange Load E, HWY 16, URange Load E, HWY 16, URange Load E, HWY 16, URange Load E, HWY 16, L /Range Load E, HWY 10 Ply, L /Range Load, E, HWY 2.0 Radial Truck Tires 2.1 825R x 20, HWY Load Range F 2.2 9R x 22.5, HWY Load Range F 2.3 10R x 22.5, Load Range G, HWY 2.4 11R x 22.5, Load Range G, Lug 2.5 11R x 24.5, Load Range G, Lug 2.6 11R x 22.5, Load Range G, Radial TL, HWY TRD 2.7 12R x 22.5, Load Range G, Lug 2.8 315/80R x 22.5, 20 Ply, Radial TL, HWY TRD, Speed rating 65 M.P.H. or higher. 2.9 225/70R x 19.5, Load Range F, tubeless HWY 2.10 245/70R x 19.5, Load Range F, HWY 2.11 245/75R x 22.5, Load Range G, HWY 2.12 385/65R x 22.5, L/R (L), radial TL, all position rib 108 105 14 49 18 10 56 4 30 47 20 58 ea ea ea ea ea ea ea ea ea ea ea ea No Bid 66.72 7.005.60 88.24 1.235.36 No Bid 51.13 920.34 49.69 496.90 No Bid 42.49 169.96 54.44 1.633.20 54.17 2.545.99 46.14 922.80 57_35 3.326.30 Goodyear Integrity/Regatta/Wrangler No Bid No Bid No Bid No Bid No Bid No Bid No Bid No Bid No Bid No Bid No Bid No Bid 20 ea 112.75 2,255.00 84.00 1.680.00 Workhouse /Goodyear CMA Workhorse Nanco 4 61 25 198 16 147 10 10 10 114 638 276 106 10 288 20 10 11 6 -59- ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea ea No Bid 115.09 7 112.37 2.809.25 108.66 21.514.68 No Bid 118.66 No Bid Goodyear Wrangler No Bid 020.49 132.00 8,052.00 134.00 3,350.00 136.00 26,928.00 No Bid 17.443.02 136.00 19, 992.00 No Bid Firestone /BFG Firestone /BFG No Bid 214.12 257.84 231.15 248.92 211.90 346.47 385.32 No Bid 225.44 221.33 388.80 No Bid 2.141.20 No Bid 29.393.76 No Bid 147.473.70 232.00 148, 016.00 68,701.92 248.00 68.448.00 22.461.40 221.00 23,426.00 3.464.70 No Bid 110.972.16 475.00 136, 800.00 No Bid 2.254.40 No Bid 2.434.63 No Bid 2.332.80 450.00 2,700.00 Item 2.13 2.14 3.0 3.1 3.2 3.3 4.0 4.1 4.2 4.3 4.4 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: MARIA GARZA Bid Tabulation Bid Invitation No. BI- 0204 -08 Vehicle Equipment Tires Description Qty Unit Wingfoot Commercial Tire Systems, LLC Corpus Christi, TX Strouhal Tire Corpus Christi, TX Unit Extended Price Price Unit Extended Price Price 425/65R x 22.5, L/R, TL, HWY TR 6 ea 484.09 2,904.54 450.00 2.700.00 445/65R x 22.5, L/R, TL, HWY TR 6 ea 546.88 3.281.28 680.00 4,080.00 Manufacturer: Goodyear /Dunlop CMA/Firestone/ Michelin Brand: 0149/SP160/SP431/G124/ Geostar/ Freestar /BFG Firestone Loader Tires 17.5 x 25, 12 Ply, Tire TL Loader L -2 6 ea No Bid No Bid 20.5 x 25, 16 Ply, TL Loader L -2 6 ea No Bid No Bid 750 x 15, 12 Ply, Tube Type Compactor (smooth) 10 ea 159.97 1.599.70 No Bid Manufacturer: Carlisle Brand: Compacton Smooth Farm, Tractor Tires 11L x 15, 8 Ply Tubeless 20 ea No Bid No Bid 11L x 16, 10 Ply Tubeless 20 ea 107.35 2.147.00 145.00 2,900.00 16.9 x 24, 8 Ply Tubeless 6 ea 307.97 1.847.82 No Bid 21 L x 24, 12 Ply, Tubeless 6 ea No Bid No Bid Manufactuer: Denman Firestone /Galaxy Brand: Firestone /Primex Award Total: Grand Total: -60- $398,848.44 $471.676.44 $72,828.00 8 Requested Council Date: 10/14/08 Alternate Date: 10/21/08 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving a service agreement with U.S. Security Associates, Corpus Christi, Texas, for Uniformed Guard Security Services for City Hall, Frost Bank Building, Central Library, Greenwood Library, Janet F. Harte Library and the O.N. Stevens Water Treatment Plant in accordance with Bid Invitation No. BI- 0122 -08 based on low bid meeting specifications for an estimated annual expenditure of $369,037.50, of which $290,962.50 is budgeted in FY08 -09. The term of the contract is for twelve months with options to extend for up to two additional twelve -month periods, subject to the approval of the contractor and the City Manager, or his designee. Funds have been budgeted by the using departments in FY 08 -09. *********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** BACKGROUND: Purpose: Security Services are required at City Hall twenty -four hours a day, seven days a week, for approximately 10,998 hours per year. This includes one guard on duty 24 hours a day and an additional guard on duty eight hours a day, five days a week. The contractor is responsible for 24 -hour offsite monitoring of the fire alarm system located at City Hall, 24 -hour onsite monitoring of the security system and video surveillance system at City Hall, relaying activated alarms and emergencies to the appropriated agency and maintaining 24 hour, two -way communications between the onsite security guard and the offsite monitoring station. The onsite security guards are responsible for patrolling and monitoring all spaces contained within City Hall and the surrounding parking areas to ensure safety and order are maintained 24 -hours a day. Security Services are required at the Frost Bank Building for approximately 120 hours per week or 6,240 hours per year. The onsite security guard is responsible for opening the building in the morning, monitoring all security systems while on duty, patrolling and monitoring all spaces contained within the building and the surrounding parking areas to ensure safety and order are maintained sixteen hours a day. Security Services are required at the Central Library, Greenwood Library, and Janet F. Harte Library. The Central Library requires security services for approximately 88.25 hours per week or 4,589 hours per year. Greenwood Library requires security services for approximately 16 hours per week or 832 hours per year. Janet F. Harte Library requires security services for approximately 20 hours per week or 1,040 hours per year. The onsite security guard is responsible for opening the building in the morning, deactivating the alarm system, monitoring all security systems while on duty, relaying activated alarms to the appropriate agency, patrolling and monitoring all spaces contained within the building and adjacent parking areas, maintaining two -way communication with the Library's information —63— Requested Council Date: 10/14/08 Alternate Date: 10/21/08 desk while on patrol, advising patrons of the posted rules of conduct, maintaining order and safety throughout the building, ensuring staff and patrons have cleared the building at closing time and securing the building by locking all exterior doors and activating the security alarm at the end of the day. Security Services are required at the O. N. Stevens Water Treatment Plant for approximately 112 hours per week or 5,824 hours per year. The onsite security guard is responsible for continuous access and monitoring of the front entry gate at the plant and visible monitoring of parking lots, buildings, equipment and roads visible from the front gate. Previous Contract: The option to extend the previous contract has been exercised, requiring the City to issue new bid invitations. Bid Invitations issued: Fifteen Bids Received: Four Price Analysis: Award Basis: When compared to previous contract, pricing has increased approximately 21 %. Low Bid Meeting Specifications American Investigations & Security International, Brownsville, Texas submitted the apparent low bid at $10.30 per hour. However, their offer has been deemed as non - responsive for failure to submit firm fixed pricing as required in the bid documents. Central Library Greenwood Branch Library Janet F. Harte Branch Library O. N. Stevens Water Treatment Plant Facilities Maintenance — City Hall Facilities Management — Dev Center/EOC .I i Michael Barrera, Assistant Director of Financial Services -64- Activity 530000 -1020 -12800 530000- 1020 -12820 530000 -1020 -12840 530000 -4010 -31010 530000 -5110 -40300 530000 -5110 -40305 Total Amount $45,225.00 8,200.00 10,250.00 57,400.00 61,500.00 108,387.50 $290,962.50 z 0 m D y 3 Cr (- CD c. CO < 3 3 ao 5 0 O N O w y m O c 0▪ .4,Z F �3 m o (D D3) co 3 7 3 m X co co X a N V co n' C Q ( 0 3 co O • OO. -0 r C (D a O • N N K Q O a Q o a C CO C m4) O N (,) O 0 (D 0 Cco co CD ID 0 N 091£0169E $ 00 66L'E8E $ 00 86£'06£ $ -65- 0 W "a n ZMOn en 71 o> 0 DWZ� Drew Orr O= CO oz- O - z D ? O NO O 0 CO 071 j co z y A D (CD a)) co (D 7C N c r O W _ D) C n Q -1 Q (n0 N(c N c co —1 7 r O — • N O-Q O N N N m ? z. O 7 (� CO n N fl) fa N N N N s O J. J J. N j O Item Description 2 -' N °� N3 lo g a D) or c a O N O� • Z co (nc y (D m2 m.0 c a 2 - a rt N3 co a 3 r g a C' d 2- C ? O (@ N n+ N,� 7 (co TO c _• N N N co ? a, m0m =si a r* c 0o a a d N j to aN3 , V m 3 3 m c 0 a (1 �` y c `Z G O (Z) GAD) To co 0 N N 0. 0 cc m CO co C a a8 �a c a v N OT m aN3 ct v m 3 3 0 c 0 a n .7 S N c ••2 C O 3 c)N 02. co N `Z N a 0 N a — co a m n c 2 01 A O) - N A 0 0 0 N CO CO 0 _ N 0 N O O N 0 I V O _ -1. N N 0 0 0)) N 0 0 0 0 O J ..a. N N 0 0 EA 0)) 0 01 0 Unit Price U.S. Security Associates Corpus Christi, Texas Extended Price W 0 0 -...1 01 - N O -a CO 0 0 W CO W O O -1. -. CO CO 0 0 0 0 N O ---.1 A A CO 0 0 0 0 EA CO CO O 0 0 0 EA N I (n A CO O A 0 O Unit Price Extended Price :a Security risti, Texas _ co O 0 J (31 N 0 _‘ co 0 0 . O O CO O O J co CO 0 01 0 O N ()1 J O) AO) 0 0 O 0 4,9 CO CO 0 01 0 0 EN J N N ---1 O ACOO 0 co 0 O Unit Price Extended Price ;sociates exas -65- 0 W "a n ZMOn en 71 o> 0 DWZ� Drew Orr O= CO oz- O - z D ? O NO O 0 CO 071 j co z y A D (CD a)) co (D 7C N c r O W _ D) C n Q -1 Q (n0 N(c N c co —1 7 r O — • N O-Q O N N N m ? z. O 7 (� CO n N fl) 9 CITY COUNCIL AGENDA MEMORANDUM Date: October 14, 2008 AGENDA ITEM: Resolution authorizing the City Manager or designee to submit a "HOME 2009" grant application to the U.S. Department of Housing and Urban Development in the amount of $1,228,303 for Continuum of Care Homeless Assistance and execute all related documents. PRIOR COUNCIL ACTION: On December 21, 2007, the U.S. Department of Housing and Urban Development (HUD) allocated $1,009,759 to the City of Corpus Christi's "HOME 2008" Continuum of Care grant process. REQUIRED COUNCIL ACTION: Authorize the submittal of the "HOME 2009" Continuum of Care grant application in the amount of $1,228,303 to HUD for supportive housing program activities for the homeless. RECOMMENDATION: Staff recommends the authorization to submit the "HOME 2009" Continuum of Care grant application in the amount of $1,228,303 for Supportive Housing Program Assistance to persons that are homeless and execute all related documents. ADDITIONAL SUPPORT MATERIAL Background Information City Resolution M M -69- thiudatil Daniel Galle s Jr., Administrator BACKGROUND INFORMATION The City of Corpus Christi and Homeless Issues Partnership (HP), Inc. work in partnership together in addressing the provisions of services to persons that are homeless for the Corpus Christi/ Nueces County area. The mission of the HIP is to serve as a regional coalition of agencies, individuals and businesses that address and resolve issues related to homelessness in the Coastal Bend through actions, resources and education. The helm of the Continuum of Care grant application presides with the City of Corpus Christi. As the Lead Agency, the City of Corpus Christi is responsible for the planning and coordinating of the Continuum of Care process. This includes coordinating meetings, adhering to certain timetables set forth by the application process, writing Exhibit 1 (narrative), ensuring that each submitted proposal meets the eligibility threshold and packaging /submitting the Continuum of Care grant application by its due date. As the Fiscal Agent, the City of Corpus Christi is the administrator of the grant, responsible for monitoring each Subrecipient to ensure program compliance and all other responsibilities associated with grant administration. The following is the breakdown for the "HOME 2009" Continuum of Care grant application. The total below represents the HUD allocation not inclusive of the match requirements provided by each recipient. - Renewal Project N- New Project —70— Entity /Program Budget 1 Wesley Community Center Child Care /Supportive Services /R $134,971 2 The Salvation Army /Project Bridge for Families/Transitional Housing /R $181,143 3 Charlie's Place Sunrise Recovery House /Supportive Services /R $142,569 4 Nueces County MHMR of Nueces County /Permanent Housing /R $119,706 5 CC Metro Ministries Rainbow House/Transitional Housing /N $218,545 6 Goodwill Industries of South Texas/WORK 2000 /Supportive Services /R $142,720 7 The Salvation Army /Project Bridge for Singles/Transitional Housing /R $128.394 8 CC Metro Ministries Rustic House/Transitional Housing /R $160,255 Projects total $1,228,303 - Renewal Project N- New Project —70— It is estimated that the economic impact of the $1.2M far exceeds $5M which surpasses the value of the grant itself. Each agency project must provide both a local match and additional leveraging funds in order to be considered for the award. The $5M is based on the earning potential of those who have completed the programs in the past, and are now working, living and shopping in Corpus Christi. Subsequently, many other agencies operating in the Continuum of Care offer additional leveraging of funds and other program related services in the fight against (chronic) homelessness. HIP will continue to support the City of Corpus Christi Lead Agency /Fiscal Agent role in an advisory capacity. The long- standing relationship and processes established and maintained by HIP and the City of Corpus Christi's Community Development will continue, thus allowing for a continuation of homeless services. The City of Corpus Christi will receive 2' 1/2 of 5% of the grant allocation for the Continuum of Care grant administration. This equates to approximately $30,707. —71— A RESOLUTION AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT A "HOME 2009" GRANT APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN THE AMOUNT OF $1,228,303 FOR CONTINUUM OF CARE HOMELESS ASSISTANCE AND EXECUTE ALL RELATED DOCUMENTS. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager or his designee is authorized to submit a "HOME 2009" grant application to the U. S. Department of Housing and Urban Development in the amount of $1,228,303 for Continuum of Care homeless assistance funding and to execute all related documents. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary APPROVED: September 26, 2008 S., ,, Li .!o. I '1% Eli t, th R. Hundle As- : ant City Attomey for the City Attomey EHres225 reed —72— Henry Garrett Mayor Corpus Christi, Texas day of , 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon -73- 10 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: October 14. 2008 AGENDA ITEM: Resolution authorizing the City Manager, or his designee, to execute the third amendment to the contract between the Corpus Christi Business and Job Development Corporation and Nueces County Community Action Agency for a Pilot Infill Housing project to utilize remaining land acquisition funds for development costs and green building /energy efficient construction techniques for the remaining eight homes to be constructed. ISSUE: Nueces County. Community Action Agency (NCCAA) is proposing to utilize the remaining project funds from the Pilot Infill Housing Project, estimated to be $45,564 toward the associated construction and development costs and implementing green building /energy efficient construction techniques. The construction /development costs would include: building permits, water and wastewater connections fees, land /construction preparation (clearance of land of trees, fencing, concrete, etc.). The green building /energy efficient construction techniques would include: Icynene foam insulation, tank -less water heaters, energy star light fixtures, and air conditioning units. NCCAA proposes to utilize the remaining balance of $45,564 toward the investment of $5,000 worth of development/construction fees and energy efficiency techniques on each of the eight (8) homes scheduled to be constructed. The third amendment is proposed for City Council approval by the Corpus Christi Business and Job Development Corporation (4A Board) for affordable housing projects supported with funding made available through the sales and use tax for affordable housing as approved by the residents with the passage of Proposition 2B on November 5, 2002. The proposed amendment was considered and approved by the Corpus Christi Business and Job Development Corporation (4A Board) on August 18, 2008. PREVIOUS COUNCIL ACTION: May 19, 2005 - The original contract was effective for NCCAA Infill Housing Project April 2007 - A first amendment was approved by the 4A Board and the City Council to extend the term of the agreement to November 19, 2007. November 2007 - The second amendment was approved by the 4A Board and the City Council to extend the term of the agreement to November 19, 2009 and extend the area boundaries for the project to expand the opportunities to acquire available land to develop for infill housing. —77— REQUIRED COUNCIL ACTION: City Council approval is necessary to finalize the proposed amendments to the Affordable Housing Program contract of the Corpus Christi Business and Job Development Corporation and for all 4A programs and expenditures as established by the Section 21 of Article 5190.6 Texas Revised Civil Statutes. CONCLUSION AND RECOMMENDATION: The Corpus Christi Business and Job Development Corporation (4A Board) and City staff supports the request by NCCAA to change the scope of their project to include the cost of development/construction fees and the green building techniques. These associated construction costs do qualify as an approved category for 4A Affordable Housing funding. City Staff recommends City Council approval of the proposed amendments to the Affordable Housing Program contracts as presented by the Corpus Christi Business and Job Development Corporation and City Staff. Respectfully Submitted, ( Yvonne Morales Haag, Dir= r t� t Sighborhood Services De - ment Attachments: Background Information Proposed NCCAA Affordable Housing Project Agreement Amendment #3 Resolution NCCAA Affordable Housing Project -78- BACKGROUND INFORMATION Background Nueces County Community Action Agency (NCCAA) received a grant in the amount of $175,000 to acquire ten (10) in -fill lots and assist ten (10) families with down payment assistance for an "Infill Neighborhood Revitalization Pilot Project" The location of the Infill Project is in the Soledad (Carver Subdivision) which includes the boundaries of Carver Drive and Tarlton Street, east along Tarlton Street to Elgin Street, south along Elgin Street to Lawton Street, west along Lawton Street to Washington Street, north along Washington Street to Soledad Street, east along Soledad Street to Carver Drive, north along Carver Drive to its intersection with Tarlton Street. —79— NUECES COUNTY COMMUNITY ACTION AGENCY 101 South Padre Island Drive Corpus Christi, Texas 784054102 (361) 883.7201 FAX: (361) 883 -9173 Joe A. Martinez Executive Director July 9, 2008 Yvonne Haag, Director Neighborhood Services Department City of Corpus Christi 1201 Leopard St. Corpus Christi, TX 78401 RE: Infill Pilot Project — Reallocation of Land Acquisition Funds Dear Ms. Haag: NSD JUL 1 0 2008 Nueces County Community Action Agency is requesting the use of the remaining land acquisition funds from our Corpus Christi Business and Job Development Corporation (4A Board) Pilot Infill Revitalization Housing Project award for development cost and green building/energy efficient construction techniques for the remaining eight (8) homes still needing to be constructed. The remaining dollars would be used for the following: Development cost such as building permits, water and waste water connections fees, mowing, and site prepping (removal of overgrown trees, existing concrete, fencing, etc.) Green building/energy efficient construction techniques such as Icynene Foam insulation, tank less water heaters, energy star light factures and A/C unit will be employed. The remaining balance of the $80,000 land acquisition dollars is estimated to be $45,564. : Approximately an additional 5k per home can be invested into the sustainability of the home in the form of new infrastructure and reduced energy consumption. The use of green building/energy efficient techniques to each home will be determined on a case by case basis depending on the amount of site prep involved in each property. For example, some lots are clean and ready to build while others will require the removal of existing concrete structures and trees. Once development costs are covered the remaining dollars will be invested into the energy efficiency of the home. Please contact Rudy Cantu, Housing Director, at 883- 7201ext. 47 or me should you have any questions. Sincerely, TL —Joe A. Martine% Executi jr for "NeighborWorks® CHARTERED MEMBER -80- VAconf iiiier ction. P A R T N E R S H I P Helping People. Changing Lives. . Development fees are subject to change Sept. 1, 2008 0 O 1 0 0 CA N O O Of W O) 0 0 O O O O C O Oo J 0) 01 A 0) N Property " Guadalupe Lot 2 2718 Guadalupe Lot 1 2746 Nogales " Nogales Lot 2 2822 Nogales Lot 1 2814 Soledad 2818 Soledad 12822 Soledad 700.00 600.00 500.00 pp O O O 1,500.00 3,000.00 1,500.00 N O O b O Est. Cost Site Preparation _ Remove: approximately 11 trees - sizes vary 2" -12" diameter Remove: approximately 9 trees - sizes vary 2 " -12" diameter Remove: approximately 6 trees - sizes vary 2 "- 12" diameter Remove: trees, 10'x10' concrete pad, 12 "x8' footing 1W111UVtl. lIeab, UUIIUI MC IUUINPINII pima, (20) Remove: 8 -trees 4 " -18" diameter , 12'x12' concrete pad, 8'x20' concrete driveway, 18 "x10' walkway Remove: 3 -trees 4 " -12" diameter, 20' chain link fence,18 "x 10' walkway Remove: 5 -trees 4 " -12" diameter, 8'x10' concrete pad, 8'x16' asphalt driveway, 18 "x10' walkway 0 0 2,067.00 2,067.00 2,067.00 2,067.00 2,067.00 N O O N b O O 2,067.00 Development Fees $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) Description 1 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 N O O O O O 2,000.00 Est. Cost 1 Green /Energy Efficiency Concepts 1 $1000 Tankless Water Heater $1,000 toward Icynene Insulation or Energy Star fixtures/a fiances $1000 Tankless Water Heater $1,000 toward Icynene Insulation or Energy Star fixtures /a fiances $1000 Tankless Water Heater $1,000 toward Icynene Insulation or Energy Star fixtures/a fiances $1000 Tankless Water Heater $1,000 toward lcynene Insulation or Energy Star fixtures/a fiances $1000 Tankless Water Heater $1,000 toward lcynene Insulation or Energy Star fixtures/a fiances $1000 Tankless Water Heater $1,000 toward Icynene Insulation or Energy Star fixtures /a liances $1000 Tankless Water Heater $1,000 toward Isynene Insulation or Energy Star fixtures/a fiances $1000 Tankless Water Heater $1,000 toward lcynene Insulation or Energy Star fixtures /appliances Description A v 0 A m 0 A V 0 N 0) 0 -81 5,567.09 V a 0 (T m 0 6,567.00 Property Total f/) cD 0 73 f" A 3 GT d, z. i0 7 io 91 to r my a 2 Vi O v 0 N INFILL PILOT REVITALIZATION PROJECT Development fees are subject to change Sept. 1, 2008 co .0 c m O 0. c O co Tl 4 co a3 N N. N ?. co t0 is r 0) 7 n a N_ 0 7 0 0 0) N INFILL PILOT REVITALIZATION PROJECT r 0) 01 a CO N 0 3 C " Guadalupe Lot 2 Total Coat 2718 Guadalupe Lot 1 2746 Nogales " Nogales Lot 2 2822 Nogales Lot 1 2814 Soledad 12818 Soledad N CO N N O 8. O. p O O N pO O 8 O 1,500.00 3,000.00 1,500.00 N N 0 b 0 1st. (Mat Remove: approximately 11 trees - sizes vary 2 " -12" diameter ..'rr' .........' 'J ., ., coo - air-ca vary 2 " -12" diameter vary 2 "- 12" diameter Remove: trees, 10'x10' concrete pad, 12 "x8' footing (20) Remove: 8 -trees 4 " -18" diameter , 12'x12' concrete pad, 8'x20' concrete driveway, 18 "x10' walkway link fence,18 "x 10' walkway o w ti concrete pad, 8'x16' asphalt driveway, 18 "x10' walkway Description Site Preparation 1 N 1 V m 0 0 co V o 2,067.00 2,067.00 N 0) °0 2,067.00 N 0) 8 N 0 Cost* Development Fees $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) y 1,mo I .VV waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) .y I ;it/ I .VV Waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) ,p , rtu 1.V1./ Wdbin wale) street GUI tap fee, $606.00 water tap fee (fees include all surcharges) $1,461.00 waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) ,p, YV 1.VV wabtn wales street GUI tap fee, $606.00 water tap fee fees include all surcharges) 14> I ,40 I .uu waste water street cut tap fee, $606.00 water tap fee (fees include all surcharges) Description 2,000.00 N O o b 0 2.000.00 2.000.00 2,000.00 2.000.00 N b O b 0 N O O Green/Enerav Efficiency Conrants $1000 Tankless Water Heater $1,000 toward lcynene Insulation or Energy Star fixtures /a liances 151,000 toward lcynene Insulation or Energy Star fixti ires /a liances 51,000 toward lcynene Insulation or Energy Star fixtures /annlianrac $1000 Tankless Water Heater $1,000 toward lcynene Insulation or Energy Star fixtures /annliances 151,000 toward lcynene Insulation or Energy Star fiMures/annliances $1000 Tankless Water Heater $1,000 toward lcynene Insulation or Energy Star fixtures /annliances 151,000 toward lcynene Insulation or Energy Star fixtures /appliances 151,000 toward Icynene Insulation or Energy Star fixtures/appliances 4,767.00 P J J A r O C t N m RR7 nn T J D 00 f 7 nR7 nn p J j O J 1 i co .0 c m O 0. c O co Tl 4 co a3 N N. N ?. co t0 is r 0) 7 n a N_ 0 7 0 0 0) N INFILL PILOT REVITALIZATION PROJECT 1 RESOLUTION AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE THIRD AMENDMENT TO THE CONTRACT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND NUECES COUNTY COMMUNITY ACTION AGENCY FOR A PILOT INFILL HOUSING PROJECT, TO UTILIZE REMAINING LAND ACQUISITION FUNDS FOR DEVELOPMENT COSTS AND GREEN BUILDING /ENERGY EFFICIENT CONSTRUCTION TECHNIQUES FOR THE REMAINING EIGHT (8) HOMES TO BE CONSTRUCTED WHEREAS, the Corpus Christi Business and Job Development Corporation, the City of Corpus Christi, and Nueces County Community Action Agency (NCCAA) executed an agreement for the purpose of utilizing 4A sales tax funds to accomplish the affordable housing project described in the Agreement and in the NCCAA proposal for a Pilot Infill Housing Project. WHEREAS, the parties to the agreement desire to execute this Third Amendment to revise the agreement to utilize remaining land acquisition funds for development costs and green building /energy efficient construction techniques for the remaining eight (8) homes to be constructed. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council of the City of Corpus Christi, Texas, approves the Third Amendment to the Affordable Housing Program Agreement for a Pilot Infill Housing Project between the Corpus Christi Business and Job Development Corporation and NCCAA, to utilize remaining land acquisition funds for development costs and green building /energy efficient construction techniques for the remaining eight (8) homes to be constructed. SECTION 2. The City Manager, or designee, is authorized to execute the Third Amendment to the Affordable Housing Program for a Pilot IntlII Housing Project Agreement with NCCAA, a copy of which is attached as Exhibit "A ". Res- 3rdAmendAffordableHousingNCCAAHomes09172008 -83- 2 ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Henry Garrett Mayor APPROVED AS TO FORM: September 12 , 2008 R. Ja R ning Fi As stant Cjt9 Attorney For the City Attorney Res- 3rdAmendAffordableHousingNCCAAHomes09172008 -84- 3 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 Res- 3rdAmendAffordableHousingNCCAAHomes09172006 -85- THIRD AMENDMENT TO THE AFFORDABLE HOUSING PROGRAM AGREEMENT FOR A PILOT INFILL HOUSING PROJECT This third amendment ( "Third Amendment ") to the Affordable Housing Program Agreement for a Pilot InfiIl Housing Project ( "Program Agreement ") is made by and between the Corpus Christi Business and Job Development Corporation ( "Corporation "), the City of Corpus Christi ( "City "), and the Nueces County Community Action Agency ( "NCCAA "), a non - profit corporation organized under the statutes of the State of Texas. WHEREAS, the Corporation, City and NCCAA executed an agreement ( "Agreement ") for the purpose of utilizing 4A sales tax funds to construct infill housing, a project suitable for the promotion and development of affordable housing within the City; WHEREAS, the term of the Agreement should be extended an additional two years. NOW, THEREFORE, the parties to the Agreement agree to amend the Agreement as follows: Section 1. Section 5 of the Program Agreement is amended by adding a new subsection h, to read as follows: The NCCAA must spend at least $5,000 on each of the eight (8) homes to be constructed on the lots purchased under subsection a of this section, but not more than a total of $45,564, on the construction and related development costs, including the implementation of green building /energy efficient construction techniques, for new homes." Section 2. Section 6 of the Program Agreement is amended by revising subsection a, to read as follows: "a. The Corporation authorizes the City to pay, from allocated sales tax revenues, up to $175,000 to fund the purchase of 10 lots; for a portion of the construction and development costs of eight (8) new homes, including the implementation of green building /energy construction techniques; and to provide down payment and closing cost assistance to qualified homebuyers pursuant to this Program Agreement." Section 3. By execution of this Third Amendment, the parties agree to be bound by the amended provision. All other provisions, obligations, and conditions of the Agreement, as previously amended, that are not changed by this Third Amendment remain the same and in full force and effect. EXECUTED IN TRIPLICATE, each of which is considered an original, on this the day of , 2008. 3rd Amend NCCAA Infill Housing 09172008.doc Page 1 of 3 —86— CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION By: Eloy H. Salazar Chairman Date: STATE OF TEXAS § COUNTY OF NUECES § ACKNOWLEDGMENT § KNOW ALL BY THESE PRESENTS This instrument was acknowledged before me on , 2008, by Eloy H. Salazar, as the Chairman of the Corpus Christi Business and Job Development Corporation, a Texas nonprofit corporation, on behalf of the corporation. NOTARY PUBLIC, State of Texas ATTEST CITY OF CORPUS CHRISTI Armando Chapa 'Angel R. Escobar City Secretary Interim City Manager 3rd Amend NCCAA !nth! Housing 09172008.doc Date: Page 2 of 3 -87- APPROVED AS TO FORM: 2008 R. Jay Reining First Assistant City Attorney for the City Attorney NUECES COUNTY COMMUNITY ACTION AGENCY Date: ACKNOWLEDGMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS COUNTY OF NUECES ' /y This instrument was acknowle pd before me on /0 / - , 2008, by 1-c 4 . ail as the y .. ,.�A.. ��, �t (title) of the N ces County Community Lion Agency, a Texas nonprofit corporation, on behalf of the corporation. DORA MERINO Notary Public STATE OF TEXAS My Comm. Exp. 6-01-2011 3rd Amend NCCAA Infill Housing 09172008.doc PUB �0'i�. TARYY NO PUBLIC, State of Texas Page 3 of 3 —88— 11 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: October 14, 2008 AGENDA ITEM: ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A ONE -YEAR EXTENSION AGREEMENT OF THE AIRLINE USE AND LEASE AGREEMENTS WITH AMERICAN EAGLE AIRLINES, INC., CONTINENTAL AIRLINES, AND SOUTHWEST AIRLINES CO., FOR USE OF SPACE AT CORPUS CHRISTI INTERNATIONAL AIRPORT AND RATIFYING SUCH EXTENSION AGREEMENTS TO BE EFFECTIVE AUGUST 1, 2008; PROVIDING FOR SEVERANCE; AND DECLARING AN EMERGENCY. ISSUE: We are currently operating on a month -to -month holdover provision in the Airline Use and Lease Agreement that expired on July 31, 2008. We have held several meetings with the Airlines to negotiate the terms of the lease agreement extensions. Our goals with this lease extension were: - Continued yearly formula increase of 1.5% in the rates - Meet Airport budget and cash flow needs - Have sufficient matching CIP funds when needed -Set out responsibilities of Airport and Airlines - Satisfy Airlines airside and landside needs adequately while working on new long -term leases PREVIOUS COUNCIL ACTION: January 1, 1989 - Ordinance authorizing an Airport Use and Lease Agreement with American Airlines, Inc. Continental Airlines, Inc., and Southwest Airlines Company which expired on December 31, 1993. (Ordinance No. 020901) July 1, 1990- Ordinance authorizing an Airport Use and Lease Agreement with Delta Air Lines, Inc. which expired on December 31, 1993. (Ordinance. No 020953) March 1, 1991 - ordinance authorizing an Airport use and Lease Agreement with Conquest Airlines Corporation, which expired on December 31, 1993. (Ordinance No. 021172) June 22, 1993- Ordinance authorizing an assignment of Airport Use and Lease Agreement with Delta Airlines, Inc to Atlantic Southeast Airlines, Inc. which expired on December 31, 1993. (Ordinance No. 021694) December 21, 1993- Ordinance authorizing a one year extension of the Airport Use and Lease Agreement which expired on December 31, 1994. (Ordinance No. 021830) September 24, 1996- Ordinance authorizing a five -year lease of the Airport Use and Lease Agreement which expired on December 31, 2001. (Ordinance No. 022709) July 15, 2004- Ordinance authorizing an Airport Use and Lease Agreement with American Eagle Airlines, Inc., Atlantic Southeast Airlines, Inc., Expressjet Airlines, Inc., and Southwest Airlines which expired on July 31, 2008. (Ordinance No. 025904)91 — REQUIRED COUNCIL ACTION: Council approval as requested FUNDING: N/A CONCLUSION AND RECOMMENDATION: On October 8, 2008, the Airport Board will recommended approval of this item. Attachments: -92- Fernando Segun o Director of Aviation BACKGROUND INFORMATION Trillion Aviation was retained by the airport to assist in the development and negotiation of new Airline Use and Lease Agreement. The assignment included Trillion assisting the airport in the negotiation of an extension of the current lease for a one year period (August 1, 2008 -July 31, 2009) in order for the airport to have sufficient time to thoroughly review the current business arrangements and to develop a new agreement that promotes airline service yet provides financial stability for the airport. An extension was drafted and distributed to the airlines and subsequently executed. Trillion continues to work with airport management on developing the framework for the new agreement which will be completed and executed prior to the expiration of the extension. —93— AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A ONE -YEAR EXTENSION AGREEMENT OF THE AIRLINE USE AND LEASE AGREEMENTS WITH AMERICAN EAGLE AIRLINES, INC., CONTINENTAL AIRLINES, AND SOUTHWEST AIRLINES CO., FOR USE OF SPACE AT CORPUS CHRISTI INTERNATIONAL AIRPORT AND RATIFYING SUCH EXTENSION AGREEMENTS TO BE EFFECTIVE AUGUST 1, 2008; PROVIDING FOR SEVERANCE; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. The City Manager, or his designee, is authorized to execute a one -year extension agreement of the Airline Use and Lease Agreements for each of the following airlines. American Eagle Airlines, Inc., Continental Airlines, and Southwest Airlines Co., for use of space at the Corpus Christi International Airport. Execution of the extension agreements is ratified by the City Council to be effective August 1, 2008. 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. Upon the 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 on this the day of , 2008. ATTEST: Armando Chapa City Secretary OVED: Octo`r • 008 1 a ar Eliz- • - h R. Hundley Ass ti = nt City Attorney for the City Attorney EHord246.doc —94— CITY OF CORPUS CHRISTI Henry Garrett Mayor 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, Council Members Henry Garrett Mayor 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 EHord246.doc -95- EXTENSION AGREEMENT THIS AGREEMENT is made and entered into this day of , 2008, by and between the CITY OF CORPUS CHRISTI, a municipal corporation and political subdivision of the State of Texas, hereinafter referred to as "CITY," and AMERICAN EAGLE AIRLINES, INC., a corporation organized and existing under the laws of the State of Delaware and authorized to do business in the State of Texas, hereinafter referred to as "AIRLINE." 1) Beginning August 1, 2008, charges for the use of the exclusive area assigned to AIRLINE, plus covered walkways and gates, and outside baggage access area shall have an increase of 1.5 %. See Exhibit "G -3 ". 2) The term of this agreement is for One Year, effective August 1, 2008 thru July 31, 2009. All other terms and conditions of the Airline Use and Lease Agreement for Corpus Christi International Airport, dated July 20th, 2004, which are not inconsistent herewith shall continue in full force and effect during this renewal period. IN WITNESS WHEREOF, the parties hereto have themselves or through their duly authorized officers executed this Extension Agreement effective as of the day and year above first written. EXECUTED IN DUPLICATE ORIGINALS this day of . 2008, by the authorized representative of the parties. ATTEST: City of Corpus Christi, Texas Armando Chapa `Angel R. Escobar City Secretary Interim City Manager —96— APPROVED AS TO LEGAL FORM THIS xl DAY OF th ,tA08: Elizab Hundle Assistant City Attorney For City Attorney AIRLINE: AMERICAN EAGLE AIRLINES, INC. By: Name: Title: JOHN D. NICKS VP. CORPORATE $ERV1 S —97— EXHIBIT G -3 CALCULATION OF AIRLINE CHARGES SIGNATORY AIRLINE TERMINAL RENT Airline Leased Square Footage WEIGHTED AVERAGE RATE PSF Airline Exclusive & Preferental Use Leased Space Total Airline Terminal Rent SIGNATORY AIRLINE COMMON USE CHARGES Common Use Baggage Claim Area Square Footage Cost of Areas © Weighted Average Rate PSF Terminal Security Costs Less Terminal Security Cost Recovery Net Terminal Security Cost Net Allowable Costs SIGNATORY AIRLINE LANDING FEES Landing Fee Rate SIGNATORY AIRLINE APRON FEE Apron Charge per preferential position Apron Charge for joint use positions SIGNATORY APRON OVERNIGHT PARKING FEE FEDERAL INSPECTION SERVICES (FIS) FEE FY 2009 26,176 49.18 20,173 992,064 6,003 295,208 Subject to adjustment. 1 Subject to adjustment. Includes CU Bag Areas 293,619 Source Exhibit G -2 Cost Center Allocations • 293,619 $ 588,8271 1.32 56,672 20/80% Recovery of Cost based on enplanements For five preferential positions, six beginning May 1, 2008 0 20/80% Recovery of Cost based on enplanements 157.59 $ 2.50 per passenger 10/6/2008 11:32 AM Final -98- EXTENSION AGREEMENT THIS AGREEMENT is made and entered into this day of , 2008, by and between the CITY OF CORPUS CHRISTI, a municipal corporation and political subdivision of the State of Texas, hereinafter referred to as "CITY," and CONTINENTAL AIRLINES, INC., a corporation organized and existing under the laws of the State of Delaware and authorized to do business in the State of Texas, hereinafter referred to as "AIRLINE." 1) Beginning August 1, 2008, charges for the use of the exclusive area assigned to AIRLINE, plus covered walkways and gates, and outside baggage access area shall have an increase of 1.5 %. See Exhibit "G -3 ". 2) The term of this agreement is for One Year, effective August 1, 2008 thru July 31, 2009. All other terms and conditions of the Airline Use and Lease Agreement for Corpus Christi International Airport, dated July 206, 2004, which are not inconsistent herewith shall continue in full force and effect during this renewal period. IN WITNESS WHEREOF, the parties hereto have themselves or through their duly authorized officers executed this Extension Agreement effective as of the day and year above first written. EXECUTED IN DUPLICATE ORIGINALS this day of , 2008, by the authorized representative of the parties. ATTEST: City of Corpus Christi, Texas Armando Chapa `Angel R. Escobar City Secretary Interim City Manager —99— APPROVED AS TO LEGAL FORM THIS 7 DAY OF2008: I� Lsj.%ii AS/ ,aiij 4 Eliza . h Hund y Assis rut City Attorney For City Attorney AIRLINE: CONTINENTAL AIRLINES, INC. By: Name: Title: Holden Shannon Seflier Vice Piaaida: Global Real Estate and Security —100— EXHIBIT G -3 CALCULATION OF AIRLINE CHARGES SIGNATORY AIRLINE TERMINAL RENT Airline Leased Square Footage WEIGHTED AVERAGE RATE PSF Airline Exclusive & Preferental Use Leased Space Total Airline Terminal Rent SIGNATORY AIRLINE COMMON USE CHARGES Common Use Baggage Claim Area Square Footage Cost of Areas @ Weighted Average Rate PSF Terminal Security Costs Less Terminal Security Cost Recovery Net Terminal Security Cost Net Allowable Costs SIGNATORY AIRLINE LANDING FEES Landing Fee Rate SIGNATORY AIRLINE APRON FEE Apron Charge per preferential position Apron Charge for joint use positions FY 2009 26,176 Subject to adjustment. 1 20,173 Subject to adjustment. 992,064 6.003 295,208 Includes CU Bag Areas 293,619 Source Exhibit G -2 Cost Center Allocations 293,619 $ 588,827 I .. 1.321 20/80% Recovery of Cost based on enplanements For five preferential positions, six beginning May 1, 2008 0 20/80% Recovery of Cost based on enplanements SIGNATORY APRON OVERNIGHT PARKING FEE $ - 157.89 FEDERAL INSPECTION SERVICES (FIS) FEE $ 2.50 per passenger -1 0 1 - EXTENSION AGREEMENT THIS AGREEMENT is made and entered into this day of , 2008, by and between the CITY OF CORPUS CHRISTI, a municipal corporation and political subdivision of the State of Texas, hereinafter referred to as "CITY," and SOUTHWEST AIRLINES CO., a corporation organized and existing under the laws of the State of Texas and authorized to do business in the State of Texas, hereinafter referred to as "AIRLINE." 1) Beginning August 1, 2008, charges for the use of the exclusive area assigned to AIRLINE, plus covered walkways and gates, and outside baggage access area shall have an increase of 1.5 %. See Exhibit "G -3 ". 2) The term of this agreement is for One Year, effective August 1, 2008 thru July 31, 2009. All other terms and conditions of the Airline Use and Lease Agreement for Corpus Christi International Airport, dated July 20th, 2004, which are not inconsistent herewith shall continue in full force and effect during this renewal period. IN WITNESS WHEREOF, the parties hereto have themselves or through their duly authorized officers executed this Extension Agreement effective as of the day and year above first written. EXECUTED IN DUPLICATE ORIGINALS this day of . 2008. by the authorized representative of the parties. ATTEST: City of Corpus Christi, Texas Armando Chapa `Angel R. Escobar Interim City Manager City Secretary —102— APPROVED AS TO LEGAL FORM THIS DAY OF Elizaben Rundle Assist City Attorney For City Attorney AIRLINE. NAME OF AIRLINE By: Name:2b - ` t . AERA Title: Y .. R prof rk`ve S -103- 2008: EXHIBIT G -3 CALCULATION OF AIRLINE CHARGES SIGNATORY AIRLINE TERMINAL RENT Airline Leased Square Footage WEIGHTED AVERAGE RATE PSF Airline Exclusive & Preferental Use Leased Space Total Airline Terminal Rent SIGNATORY AIRLINE COMMON USE CHARGES Common Use Baggage Claim Area Square Footage Cost of Areas © Weighted Average Rate PSF Terminal Security Costs Less Terminal Security Cost Recovery Net Terminal Security Cost Net Allowable Costs SIGNATORY AIRLINE LANDING FEES Landing Fee Rate SIGNATORY AIRLINE APRON FEE FY 2009 26,176 Subject to adjustment. Includes CU Bag Areas 1 20,173 Subject to adjustment. 992,064 6,003 295,208 293,619 Source Exhibit G -2 Cost Center Allocations 293,619 E 588,827 20/80% Recovery of Cost based on enplanements Apron Charge per preferential position For five preferential positions, six beginning May 1, 2008 Apron Charge for joint use positions SIGNATORY APRON OVERNIGHT PARKING FEE FEDERAL INSPECTION SERVICES (FIS) FEE 0 20/80% Recovery of Cost based on enplanements $ 2.50 per passenger -104- 12 AGENDA MEMORANDUM DATE: October 14, 2008 SUBJECT: US 77 SPEED LIMIT INCREASE AGENDA ITEM: Ordinance amending the Code of Ordinance Section 53 -254, Schedule V, Increase of State Speed Limit , by revising the speed limit on U.S. 77 from 55 Miles Per Hour to 70 Miles Per Hour from Interstate Highway 37 south to the City Limit Boundary Line; providing for penalties; providing for severance; and providing for publications. ISSUE: The Texas Department of Transportation conducted a recent speed study on U.S. 77 and is requesting a speed zone change to 70 miles per hour from I.H. 37 south to the City Limit boundary line. Staff recommendation is to amend the Code of Ordinances Section 53 -54 Schedule V, Speed Limits, by establishing the speed limit on U.S. 77 to be changed from 55 mph to 70 mph. REQUIRED COUNCIL ACTION: Amending the Code of Ordinances Section 53 -254, Schedule V, requires City Council Approval. FUNDING: NIA RECOMMENDATION: Approval of the motion as presented. 7-07a‘ ,02 Kevin R. towers, Interim Director of Engineering Services Additional Support Material Exhibit "A" Background Information Exhibit "B" Site Map Exhibit "C" Texas Department of Transportation Study —107— BACKGROUND INFORMATION BACKGROUND: Texas Department of Transportation has requested a speed zone change on U.S. Highway 77 from I.H 37 to the City Limit line. A recent study conducted by Texas Department of Transportation revealed the 85% percentile speed limit to be 70 miles per hour (Exhibit C.) The creation of the new controlled access main lanes warranted TxDOT to conduct a new speed study. A previous study was conducted in 1999 when this section of U.S. 77 had non - controlled access. REVIEWED BY TRANSPORATION ADVISOPRY COMMITTEE: The Transportation Advisory committee has reviewed the recommendation and unanimously voted to recommend approval to the City Council of the proposed Speed Zone Change on U.S. 77 from 55 miles per hour to 70 miles per hour. EXHIBT "A" Page 1 of 1 -108- �IIIt III Un m n oo m c V m m zm m = m w � V N D zz 0 m -1 m z m IT 4 = a CD CD m cp m ft, G z CD n ' V O rcs O < -0 r ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 53 — TRAFFIC, SCHEDULE V, SECTION 53 -254 (INCREASE OF STATE SPEED LIMIT IN CERTAIN ZONES) BY ESTABLISHING A REVISED SPEED LIMIT OF 70 MPH ON U.S. HIGHWAY 77 (INCREASING THE SPEED LIMIT FROM 55 MPH TO 70 MPH) FROM INTERSTATE HIGHWAY 37 TO THE CITY LIMITS SOUTH; PROVIDING FOR PENALTIES; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City of Corpus Christi Code of Ordinances, Section 53 -254, Schedule V, is hereby amended by adding the underlined text between the following existing paragraphs (as shown below): Up River Road: From Erwin Street to Navigation Boulevard - -35 mph - -At all times From Navigation Boulevard to a point approximately 1,200 feet north of Lantana Road --40 mph —At all times Those portions of Up River Road within the city limits between a point 1,200 feet north of Lantana Road and Renfrow Road -40 mph —At all times Those portions of Up River Road within the city limits between Renfrow Road and Rand Morgan Road -45 mph —At all times From Violet Road to a point approximately 1,200 feet west of Rehfield Road -35 mph —At all times From a point approximately 1,200 feet west of Rehfield Road to Sharpsburg Road - -40 mph —At all times From Rand Morgan Road to a point approximately 1,500 feet west of McKinzie Road-40 mph —At all times From a point approximately 1,975 feet west of Loma Alta Street (near the Missouri - Pacific RR track crossing) to a point approximately 2,200 feet east of Hearn Road -40 mph —At all times From a point approximately 2,200 feet east of Hearn Road to Hearn Road --45 mph —At all times. U.S Highway 77: From Interstate Highway 37 to the city limits south -70 mph - -All times. 093008 ORD Amend 53 -254 US 77 -110- U.S. Highway 181: From the north city limits (MP 0.000) to the U.S. Highway 181 /Beach Avenue Interchange (MP 2.064) - -65 mph--All times. From the U.S. Highway 181 /Beach Avenue Interchange (MP 2.064) to a point approximately 250 feet north of the center line of Belden Street - -55 mph —All times. SECTION 2. Publication shall be made one time in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 3. A violation of this speed limit may result in a citation being issued and a fine being assessed. SECTION 4. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. ATTEST: Armando Chapa City Secretary Approved as to form: 22 -Sep -0 By: 1 OA Veronica Ocanl3s Assistant City Attorney for City Attomey 093008 ORD Amend 53 -254 US 77 CITY OF CORPUS CHRISTI Henry Garrett Mayor —1 1 1— 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 Hummel) Bill Kelly APPROVED AND PASSED on this ATTEST: Armando Chapa, City Secretary 093008 ORD Amend 53 -254 US 77 Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon day of 2008. —1 1 2— Henry Garrett, Mayor 13 AGENDA MEMORANDUM DATE: October 14. 2008 SUBJECT: Two -Way Traffic Pattern on Riverwood Road. AGENDA ITEM: A. Ordinance amending the Code of Ordinance, Chapter 53- Traffic, Section 53-250 - Schedule I, One -Way Streets and Alleys, Section (a), by removing current one -way traffic pattem on Riverwood Road to two way traffic in the northbound and southbound direction of travel from F.M. 624 (Northwest Boulevard) to River Hill Drive, at all times; providing for penalties; providing for severance; and providing for publications. B. Motion authorizing the City Manager of his designee to erect a "STOP" sign on River Hill Drive at the intersection of Riverwood Road in the Northbound and Southbound Direction. ISSUE: Texas Department of Transportation has constructed raised medians through out F.M. 624, restricting left tum movements from Riverwood Road onto F. M. 624. This will allow re- establishing the existing one -way northbound traffic on Riverwood Road into two -way traffic in the northbound and southbound direction of travel from F.M. 624 (Northwest Boulevard) to River Hill Drive, at all times. Given the nature of the two -way traffic on Riverwood Road, it is advised to make the intersection of Riverwood Road and River Hill Drive an All -Way Stop to improve safety. REQUIRED COUNCIL ACTION: Amending the Code of Ordinances Chapter 53- Traffic, Section 53 -250, Schedule I, requires City Council Approval. FUNDING: N/A RECOMMENDATION: Approval of the proposed ordinance as presented. Additional Support Material Exhibit "A" Background Information Exhibit "B" Site Map OA 0 Kevin R. Stowers, Interim Director of Engineering Services —1 1 5— BACKGROUND INFORMATION BACKGROUND: In 1999 there was an increase of right angle collisions at the intersection of Riverwood Road and F.M. 624 (Northwest Boulevard). The accidents were caused by motorist making left turns from Riverwood Road onto eastbound F.M. 624 (Northwest Boulevard). On March 26, 2002, City Council approved converting Riverwood Road from a two -way street into a one -way street in the northbound direction of travel from F.M. 624 (Northwest Boulevard) to River Hill Drive, at all times. Texas Department of Transportation has made recent changes to F.M. 624 (Northwest Boulevard) which includes raised medians. The existing medians restrict left tum movements from Riverwood Road onto F.M. 624 (Northwest Boulevard), thus, allowing changing the current status of Riverwood Road from a one -way in the northbound direction into a two -way traffic in the northbound and south bound direction of travel from F.M. 624 (Northwest Boulevard). REVIEWED BY TRANSPORATION ADVISOPRY COMMITTEE: The Transportation Advisory committee has reviewed the recommendation and unanimously voted to recommend approval to the City Council with the stipulation that an All -Way Stop be installed at Riverwood Road and River Hill Drive and a raised island be installed on Riverwood Road to channelize for right turns only onto F.M. 624 (Northwest Boulevard). EXHIBT "A" Page 1 of 1 -116- 1 NO 71ddYU1 AVM OM103SOd02 m 0, 0 0 ORDINANCE AMENDING THE CODE OF ORDINANCES, CHAPTER 53- TRAFFIC, SECTION 53 -250- SCHEDULE I, ONE -WAY STREETS AND ALLEYS, SECTION (A), BY REMOVING CURRENT ONE -WAY TRAFFIC PATTERN ON RIVERWOOD ROAD TO TWO WAY TRAFFIC IN THE NORTHBOUND AND SOUTHBOUND DIRECTION OF TRAVEL FROM F.M. 624 (NORTHWEST BOULEVARD) TO RIVER HILL DRIVE, AT ALL TIMES; PROVIDING FOR PENALTIES; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City of Corpus Christi Code of Ordinances, Section 53 -250, is amended by deleting Riverwood Drive from Schedule I, One way streets and alleys, Section (a), as shown: CHAPTER 53 TRAFFIC ARTICLE VIII. SCHEDULES Sec. 53 -250. Schedule I -- One -way streets and alleys. Street or Portion of Street • - Direction of Traffic SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. Publication shall be made one time in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 4. Penalties are as provided in Section 53 -55 of the Code of Ordinances. C: \Documents and Settings \veronicao \Deskto0101408 ORD Amend 53 -250 Riverwood.doc —118— 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 Hummell 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 Hummel) Bill Kelly PASSED AND APPROVED this the ATTEST: Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon Armando Chapa City Secretary APPROVED AS TO FORM: 06- Oct -08 Veronica Ocaf%as Assistant City Attorney for City Attorney day of , 2008. Henry Garrett Mayor C: \Documents and Settings \veronicao \Desktop \101408 ORD Amend 53 -250 Riverwood.doc —119— 14 Page 1 of 1 ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A TWENTY -YEAR LEASE AGREEMENT WITH THE 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 SEVERANCE; AND PROVIDING FOR PUBLICATION. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager, or designee, is authorized to execute a twenty - year Lease Agreement with The 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. A copy of the lease is on file with the City Secretary. SECTION 2. If, for any reason, any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of the City Council that every section, paragraph, subdivision, phrase, word and provision hereof shall be given full force and effect for its purpose. SECTION 3. Publication will be made in the official publication of the City of Corpus Christi, as required by the City Charter of the City of Corpus Christi. H: \LEG- DIR\Lisa\2OO8 ORDINANCES\ ORD- authLease- MiracleField- StateSchool.doc —123— That the foregoing or nce was read r th fir time and passed to its second reading on this the day of , 2008, by the following vote: n i 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 Priscilla G. Leal Melody Cooper John E. Marez Larry Elizondo, Sr. Nelda Martinez Mike Hummell Michael McCutchon Bill Kelly PASSED AND APPROVED, this the day of , 2008. ATTEST: Armando Chapa City Secretary APPROVED as to form: August 29, 2008 By: �✓vY. Lisa Aguilar Assistant City Attorney For City Attorney —124— Henry Garrett Mayor CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: September 9, 2008 AGENDA ITEM: 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 severance; and providing for publication. ISSUE: The Miracle Field organization is raising funds to build a Miracle Field for individuals with disabilities on the State School Park Site. In order to begin fundraising and development of the project the organization needs to have a lease in place designating the location of the field. The complex will include a14,000 square foot solid surface baseball field with backstop and fencing. There will be extra wide dugouts, wheelchair accessible bleachers, a concession stand and announcers box. Future improvements could be a scoreboard and stadium lighting. There will be a perimeter security fence to protect the improvements. REQUIRED COUNCIL ACTION: Approval of the lease by City Council. PREVIOUS COUNCIL ACTION: The Parks and Recreation Department applied for a Texas Parks and Wildlife Outdoor Recreation Grant July 2006 for Phase I of the State School Park Master Plan which would include development of a Miracle Field (the grant was never awarded). Council approved of the plan and grant application at their July 25, 2006 meeting. The original State School Park Master Plan was approved by Council in June 2005. Board /Commission Action: The Parks and Recreation Advisory Committee approved the State School Park Master Plan on April 13, 2005 and unanimous support for the Miracle Field Plan on August 16, 2006. FUNDING: There is no city funding recommended for this project. Private donations will fund this project. CONCLUSION AND RECOMMENDATION: It is recommended that City Council approve the twenty year lease for the Miracle Field organization. Sally Gavlik, Director Parks and Recreation Department Attachments: Background Information -125- BACKGROUND INFORMATION The first Miracle Field was opened in Conyers, George in April 2000. The Rotary Clubs of Rockdale County and Conyers stepped forward to form the Rotary Miracle League Fund, Inc. to raise the funds necessary to build a special complex with facilities that met the unique needs of the Miracle League players. The complex would include a custom - designed field with a cushioned synthetic turf to help prevent injuries, wheelchair accessible dugouts, and a completely flat surface to eliminate any barriers to wheelchair bound or visually impaired players. The Miracle Field concept was presented to the Parks and Recreation Department in July 2006. The department worked with the organizers of the project and determined a site, State School Park, and began to layout the specific location. The Miracle Field organization began working with local businesses including the Hooks to develop the marketing plan, development and construction plans and cost estimates. The group is ready to begin the fundraising so the Miracle Field can become a reality for the citizens of Corpus Christi. -126- 1 CONSTRUCTION AND LEASE AGREEMENT WITH THE MIRACLE LEAGUE OF CORPUS CHRISTI, INC. THE STATE OF TEXAS § COUNTY OF NUECES § WHEREAS the Miracle League of Corpus Christi, Inc. desires to use certain areas of City Property located at 1354 Airport Road, Corpus Christi, Texas 78405, to construct and donate to the City an athletic field of approximately 1.25 acres with concession stand and fencing, (Improvements ") as described on attached Exhibit; WHEREAS, the City desires to grant Miracle League permission to lease the Premises described herein to construct the Improvements, and then lease to Miracle League the fields in consideration of the terms and conditions and mutual promises set out below. NOW, THEREFORE, the City and Miracle League agree as follows. Section 1. Premises. This agreement covers property located at 1354 Airport Road and described on the attached and incorporated Exhibit. Section 2. Definitions. Whenever used in this Lease, the following terms shall have the meanings ascribed to them as set forth in this paragraph, to wit: A. Lessee or Miracle League shall mean The Miracle League of Corpus Christi, Inc. a nonprofit Texas corporation, B. City shall mean the City of Corpus Christi, a Texas home -rule municipal corporation. C. City Council shall mean the City Council of the City of Corpus Christi :. D. City Manager shall mean the City Manager of the City, or his designee. E. Parks Director shall mean the City of Corpus Christi Director of Parks and Recreation. F. City Property or Premises shall mean a tract or parcel of land at Airport Road designated as shown on the attached Exhibit, together with all Improvements. G. Effective Date shall mean the 61st date after City Council approval of this agreement. Section 3. Term. —127-- 2 This agreement shall commence on the Effective Date and continues for twenty (20) years, unless earlier terminated as herein provided. Section 4. Use of City's Property for Construction of Improvements A. Lessee desires to construct or oversee construction of certain Improvements which are described on the attached Exhibit. In consideration of the construction of Improvements and donation to City, City grants to Lessee during the term of this Agreement the use of certain areas of City property as indicated on Lessee's plans for construction of the Improvements ( "City Property"). Lessee shall review the construction invoices and shall make payment if the work has been satisfactorily completed. B. When constructing the Improvements, the plans and specifications shall be prepared by state - licensed architects or engineers. The plans and specifications are subject to approval of the City Manager. Construction shall not begin until the City Director of Engineering has reviewed and approved the construction plans and specifications. Lessee agrees to maintain City Property in a sanitary, safe and clean condition during Lessee's use of the City Property. C. Lessee shall require the contractors who are awarded contracts for construction of the Improvements to furnish the following bonds by surety companies authorized to do business in Texas: 1. Payment Bond - A payment bond in the amount of One Hundred Percent (100 %) of the contract for construction of the Improvements shall be furnished for the protection of all persons, firms and corporations who may furnish materials or perform labor. The payment bond shall be made with City and Lessee as an Obligee. 2. Performance Bond - A performance bond in the amount of One Hundred Percent (100 %) of the contract for construction of the Improvements shall be furnished covering the faithful performance of the contract. The performance bond shall be made with City as an Obligee. D. Lessee shall include in all construction agreements with Lessee's construction company ( "Contractor") for the Improvements, the following provisions: 1. Contractor does hereby agree to waive all claims, release, indemnify, defend and hold harmless City and all of its officials, officers, agents and employees, in both their public and private capacities, from and against any and all liability, claims, losses, damages, suits, demands or causes of action including all expenses of litigation and /or settlement, court costs and attorney fees which may arise by reason of injury to or death of any person or for loss of, damage to, or loss of use of any property occasioned by error, omission, or negligent act of Contractor, its officers, agents, —128— 3 employees, subcontractors, invitees or any other person, arising out of or in connection with the performance of this agreement, and Contractor shall at his or her own cost and expense defend and protect the City of Corpus Christi from any and all such claims and demands. 2. Contractor does hereby agree to waive all claims, release, indemnify, defend and hold harmless the City of Corpus Christi and all of its officials, officers, agents and employees from and against any and all claims, losses, damages, suits, demands or causes of action, and liability of every kind including all expenses of litigation and /or settlement, court costs and attorney fees for injury or death of any person or for loss of, damages to, or loss of use of any property, rising out of or in connection with the performance of this agreement. Such indemnity shall apply whether the claims, losses, damages, suits, demands or causes of action arise in whole or in part from the negligence of the City of Corpus Christi, its officers, officials, agents or employees. It is the express intention of the parties hereto that the indemnity provided for in this paragraph is indemnity by Contractor to indemnify and protect the City of Corpus Christi from the consequences of the City of Corpus Christi's own negligence, where that negligence is a sole or concurring cause of the injury, death or damage. 3. In any and all claims against any party indemnified hereunder by any employee of Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, the indemnification obligation herein provided shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for Contractor or any subcontractor under workman's compensation or other employee benefit acts. E. Lessee shall also require the Contractors, in all Lessee construction agreements for the Improvements to furnish insurance in such amounts as specified below and include in all construction agreements for the Improvements the following language: 1. Prior to commencement of any activity on City of Corpus Christi's property, Contractor shall purchase and maintain during the term of this contract, at its own expense, hereinafter stipulated minimum insurance with companies duly authorized to do business in the State of Texas. Contractor shall not allow any subcontractor to commence work until all similar insurance of the subcontractor has been obtained. All insurance policies provided under this Agreement shall be written on an "occurrence" basis. Workers' Compensation as required by law. -129- Employer's Liability Insurance of not less than $500,000.00 for each accident, $500,000.00 disease for each employee, $500,000.00 disease as policy limit. 4 Commercial General Liability Insurance. including Independent Contractor's Liability, Products/Completed Operations and Contractual Liability, covering, but not limited to the indemnification provisions of this contract, fully insuring Contractor's liability for injury to or death of employees of the City of Corpus Christi and third parties, extended to include personal injury liability coverage, and for damage to property of third parties, with a combined bodily injury and property damage minimum limit of $1,000,000 per occurrence. Comprehensive Automobile and Truck Liability Insurance covering owned, hired and non -owned vehicles, with a combined single limit of $1,000,000 per occurrence. Builder's Risk. The Contractor shall purchase an All Risk builder's risk policy in the amount of the construction cost of the concession stand and fencing for the duration of this project. 2. It is agreed by all parties to this Agreement that the insurance required under this Agreement shall: a. Be written with the City of Corpus Christi and Lessee as additional insured on applicable policies and that the policy phrase "other insurance" shall not apply to the City of Corpus Christi where the City of Corpus Christi is an additional insured shown on the policy. b. Provide for thirty (30) days written notice of cancellation to the City of Corpus Christi, material change or any other cause. c. Be written through companies duly authorized to transact that class of insurance in the State of Texas. d. Waive subrogation rights for loss or damage so that insurers have no right to recovery or subrogation against the City of Corpus Christi, it being the intention that the required insurance policies shall protect all parties to the Agreement and be primary coverage for all losses covered by the policies. e. Provide a Certificate of Insurance evidencing the required coverages to: City Manager City of Corpus Christi —130— 5 Post Office Box 9277 Corpus Christi, Texas 78469 -9277 Risk and Safety Manager City of Corpus Christi Post Office Box 9277 Corpus Christi, Texas 78469 -9277 F. Lessee agrees that all work to be performed by it or its contractors, including all workmanship and materials, shall be of first -class quality and shall be performed in full compliance and in accordance with all federal, state and local laws, ordinances, codes and regulations, and such work shall be subject to City inspection during the performance thereof and after it is completed. However, the City shall have no duty to inspect. G. Lessee shall discharge all obligations to contractors, subcontractors, materialmen, workmen and /or other persons for all work performed and for materials furnished for or on account of Lessee as such obligations mature. Lessee expressly agrees that it will neither give nor grant, nor purport to give or grant any mechanic's or materialmen's lien upon the CITY's property or upon any Improvements thereupon in the process of construction or repair, nor allow any condition to exist or situation to develop whereby any party should be entitled, as a matter of law, to a mechanic's or materialmen's lien against the City's property or Improvements thereon, and Lessee shall discharge any such lien within thirty (30) days after notice of filing thereof. H. All plans and specifications referred to above and all construction upon the City's property shall comply with all applicable federal, state or municipal laws, ordinances, rules, regulations and requirements. During the progress of all work, City's duly authorized representative may enter upon the premises and make such inspections as may be reasonably necessary for the purpose of satisfying City that the work or construction meets the requirements or standards. I. Lessee shall conduct its operations under this Agreement in an orderly and proper manner, considering the nature of such operation, so as not to unreasonably annoy, disturb, or endanger others. J. Before any work on City property begins, Lessee shall present the City Director of Engineering, the City Risk Manager or designee, and the City Manager with evidence of Contractor's insurance coverages, and City building and construction permits. K. Lessee shall have the right to obtain ingress and egress to and from the area designated for construction of the Improvements by means of all existing roadways or accessways, to be used in common with others having rights of passage. M. MATERIAL AND WORKMANSHIP: —131— 6 (a) Lessee agrees that all equipment, material, and articles into the work covered by this contract shall be new and of the most suitable grade for the purpose intended, unless otherwise specifically provided in this contract. References in the specifications to equipment, material, articles, or patented processes by trade name, make, or catalog number, shall be regarded as establishing a standard of quality and shall not be construed as limiting competition. Lessee may, at its option, use any equipment, material, article, or process that, in the judgment of the City Director of Parks and Recreation, is equal to that named in the specifications, unless otherwise specifically provided in this contract. (b) Lessee shall obtain City Director of Parks and Recreation ( "City Representative ") approval of the machinery and mechanical and other equipment to be incorporated into the work. When requesting approval, the Contractor shall fumish to the City Representative the name of the manufacturer, the model number, and other information concerning the performance, capacity, nature, and rating of the machinery and mechanical and other equipment. When required by this contract or by the City Representative, the Lessee shall also obtain the City Representative's approval of the material or articles which the Lessee or its Contractor contemplates incorporating into the work. When requesting approval, the Lessee shall provide full information concerning the material or articles. When directed to do so, the Lessee shall submit samples for approval at the Lessee's expense, with all shipping charges prepaid. Machinery, equipment, material, and articles that do not have the required approval shall be installed or used at the risk of subsequent rejection. (c) All work under this contract shall be performed in a skillful and workmanlike manner. The City Representative may require, in writing, that the Lessee remove from the work any employee the City Representative deems incompetent, careless, or otherwise objectionable. A one year warranty on workmanship is required. N. Date for construction completion. If initial construction for its intended use as a Miracle Field is not completed within 24 months from the Effective Date of this Agreement, then the Lessee shall be considered to be in breach of this Agreement, and the City may terminate this Agreement upon notice to Lessee, without penalty to City, and City may additionally pursue all remedies under law. However, in -kind work will not be subject to penalty or constraint of days to complete. O. Cost of construction of the Improvements. The complete cost of developing all necessary plans and specifications and the cost of construction of the Improvements by LESSEE shall be borne solely by LESSEE and be at no expense to City whatsoever. Section 5. Ownership of Improvements After Completion of Construction. Upon completion of the Improvements, LESSEE donates the Improvements to City. The Improvements are considered completed when accepted in writing by the City Parks and Recreation Director. Any warranties given to the LESSEE regarding the Improvements shall be transferred and assigned to City at the same time as the Improvements are transferred to the City. —132— 7 Section 6. Purpose of Lease of Improvements after Completion of Construction Upon completion of the construction after Notice to Proceed from the Parks Director, the City shall lease the Premises to Lessee ( "Leased Premises ") for the remainder of the Term section described above, for Lessee to provide sports programs for the citizens of Corpus Christi. Lessee may not use the Leased Premises for any other purpose without the prior written approval of the Parks Director. The Lessee's use of the Leased Premises is subject to the terms and conditions of this Agreement, including attached Exhibits. Section 7. Damage or Destruction In the event of damage or destruction to the Improvements or Leased Premises, City shall have no obligation to repair or rebuild the Improvements or Leased Premises or any fixtures, equipment or other personal property installed by Lessee. However, if said damage or destruction occurs prior to completion of the construction of the Improvements, any insurance proceeds from any casualty loss shall be applied to the repair or rebuilding of the Improvements, which will be the extent of Lessee's obligation for repair. If such damage or destruction renders the Improvements unusable or unsafe as determined by the City Manager in his sole discretion, then upon City Manager's written notice to Lessee, this Agreement terminates immediately without penalty to the City. Any damage caused by City will be reviewed by the City Risk Management office. Section 8. Termination. In addition to provisions set forth elsewhere in this Agreement, the Agreement may be terminated as follows: (A) If there is noncompliance with one or more of the provisions contained herein, the Parks Director may give Lessee written notice to cure or begin curing the default(s) within thirty (30) days of receipt of the notice. If Lessee is not in compliance or in substantial compliance with each provision identified by the Parks Director within thirty (30) days of receiving said notice, or if such noncompliance reasonably requires additional time if Lessee is not proceeding diligently with curing the default(s), the City Manager may terminate this Lease for cause without penalty by providing written notice of temlination and listing one or more areas of continued noncompliance. Section 9. Surrender. Upon termination of this Agreement, Lessee shall return the Premises to City in as good condition as received, reasonable use and wear, acts of God, fire and flood damage or destruction where Lessee is without fault. -133- Section 10. Maintenance of Leased Premises. While construction is ongoing, City shall mow the Premises. After completion of construction as described above, Lessee must maintain the Premises and Leased Premises including the mowing and collecting litter as directed in writing by the Parks Director. Section 11. Bylaws & Officer Contact List. Attached as Exhibit is a certified copy of Lessee's Bylaws, Schedule of activities, Hours and Terms of Operation, Membership and User Fees. Lessee agrees to annually submit its list of Officers and Board of Directors to the Parks Director, including name, title, address and phone number. 8 Section 12. Responsibility for activities on Premises and Leased Premises. A. Lessee and its members are solely and exclusively responsible for all activities on the Premises and Leased Premises and have control of the Premises. The City has no responsibility for safety or any activity on the Premises. Lessee is solely responsible for safety of all activities on the Premises. B. Maintenance. Lessee must maintain the Premises. If Lessee fails to maintain the Premises, or fails to perform repairs in a timely manner, City may do so and bill Lessee. Lessee must pay City within 30 days of invoice. Maintenance includes at a minimum: (1) Lessee shall pick up and properly dispose of litter on daily basis whenever the Premises are being used and weekly during rest of the year. (2) Lessee shall keep the Premises (including any buildings, temporary or permanent) operational and in good repair, including but not limited to maintaining the infield, and cleaning and maintaining interior of building. (3) Lessee shall keep bleachers safe and in good repair. Lessee must repair the bleachers within 72 hours after need for repair is or should have been discovered. (4) Lessee must immediately report any vandalism to the Parks Director or designee and Corpus Christi Police Department. (5) Lessee must keep any parking areas and access road within the Premises free of debris, properly designated and ensure that parking is confined to designated areas. (6) Lessee must maintain the Premises. Lessee shall maintain the grass at safe height not to exceed six (6) inches. Lessee will water the Premises, in compliance with any City designated drought plan. C. Registration. Lessee will promote its programs so that the public is aware of the Lessee's activities. Lessee will conduct all registrations, take all fees, schedule all games, including makeup games and playoff games, and provide trophies for teams in each league. -134- 9 D. Utilities. Lessee must install and pay for its own utility meters and Lessee must have all utility service providers bill Lessee for all utilities, including but not limited to telephone, electricity, water, wastewater, gas, solid waste. F. Field Playability. The City reserves the right to cancel play at the Leased Premises when field conditions, as determined by Parks Director or designee, may cause player injury or damages to Leased Premises. Section 13. Alterations. Lessee may not make any alterations, additions or improvements, to, in or about the Leased Premises without prior written consent of the Parks Director. All approved alterations, improvements, and additions made by Lessee upon the Leased Premises, although at Lessee's expense, shall become the property of the City in fee simple without any other action or process of law at the end of this Agreement. Section 14. Tax. Lessee shall be responsible for any taxes, special assessments, or levies, if any, assessed during the term against or relating to the Improvements, including ad valorem taxes pursuant to the Texas Property Tax Code, throughout term of this Agreement. Lessee must provide proof of payment upon request of Parks Director. Lessee shall establish and maintain its non - profit status for tax exemption purposes. Section 15. Assignment and Subleasing. Lessee must not assign, encumber or sublease this Agreement, without prior written consent of the City Manager. Any attempted assignment or sublet without prior written consent renders this Lease void. Section 16. Payment for Utilities. Lessee must pay for all utilities used by it or for any activity sponsored by Lessee on the Premises on or prior to the due date for payment. Failure to pay any utility bill on or prior to the due date is grounds for termination of this Lease. Section 17. Signs. (A) Lessee must not exhibit, inscribe, paint, erect, or affix any signs, advertisements, notices, or other lettering (Signs) on the Premises or on any Improvements without the Director's prior written approval. (B) If Signs are approved, the Director, in writing, may require Lessee to remove, repair, or repaint any Signs. If the Signs are not removed, repaired, or repainted within ten (10) days of the Director's written demand, —135— 10 the City may do or cause the work to be done, and Lessee must pay the City's costs within thirty (30) days of receipt of Director's invoice. Failure to pay the City's costs within thirty (30) days of receipt of the invoice constitutes grounds for termination of this Lease. Section 18. Advertising. The Director has the right to prohibit any advertising by Lessee which impairs the reputation of the Premises or the City. Section 19. Security. Lessee shall contract and pay for any and all security it requires at the Premises during the term of this Lease. Section 20. Inspection. The City Manager and the Director, or their respective designee, has the right to inspect the Premises and /or the Improvements at any time during the term of this Lease. If an inspection reveals that maintenance is not being properly carried out, the Director, or his designee, may provide written notice to Lessee demanding compliance. If Lessee has not complied within five (5) days after receipt of the demand, the City may undertake the work and Lessee shall pay the City's cost plus ten percent (10 %) overhead within thirty (30) days of receipt of the Director's invoice. Failure to pay the City's invoice for maintenance within thirty (30) days of receipt of the invoice constitutes grounds for termination of this Lease. Alternatively, the City may elect to terminate this Lease after ten (10) days written notice to Lessee. Section 21. Non - Discrimination. Lessee shall not discriminate nor permit discrimination against any person or group of persons, as to employment and in the provision of services, activities, and programs, on the grounds of race, religion, national origin, sex, physical or mental disability, or age, or in any manner prohibited by the laws of the United States or the State of Texas. The City Manager, or his designee, retains the right to take such action as the United States may direct to enforce this non- discrimination covenant. Section 22. Compliance with Laws. (A) Lessee must comply with all Federal, State, and local government laws, rules, regulations, and ordinances, which may be applicable to its operation at the Premises and its performance under this Lease. This Lease is also subject to applicable provisions of the City Charter. (B) All actions brought to enforce compliance with any law or to enforce any provision of this Lease will be brought in Nueces County where this Lease was executed and will be performed. Section 23. Costs. Noncompliance with the terms herein may result in termination of this Lease and repossession of the Premises and its Improvements by the City or its —136— 11 agents. If the City undertakes legal action to enforce compliance or collect damages resulting from noncompliance, Lessee must pay all of the City's court costs and ex- penses, including reasonable attorneys' fees. Section 24. Indemnity. Lessee covenants to fully indemnify, save, and hold harmless the City, its officers, employees, representatives, and agents (collectively, Indemnitees) from and against all claims, demands, actions, damages, losses, costs, liabilities, expenses, and judgments asserted against or recovered from City on account of injury or damage to person including, without limitation on the foregoing, premises defects, workers compensation and death claims), or property loss or damage of any kind whatsoever, to the extent any damage or injury may be incident to, arise out of, be caused by, or be in any way connected with, either proximately or remotely, wholly or in part , (1) the existence, use, operation, maintenance, alteration, or repair of Premises and the Lessee's program; (2) the exercise of rights under this Lease; (3) an act or omission, negligence, or misconduct on the part of other persons having involvement in, participation with, or business with the Premises, Lessee, or the Lessee's program whether authorized with the express or implied invitation or permission of Lessee (collectively, Lessee's Invitees) entering upon the Premises or its Improvements pursuant to this Lease, or trespassers entering upon the Premises or its Improvements during Lessee's use or physical occupation of the Premises; or (4) due to any of the hazards associated with sporting events, training, or practice as a spectator or participant and including any injury or damage in any other way and including all expenses arising from litigation, court costs, and attorneys fees, which arise, or are claimed to arise from, out of, or in connection with the asserted or recovered incident. Lessee covenants and agrees that if City is made a party to any litigation against Lessee or in any litigation commenced by any party, other than Lessee relating to this Lease, Lessee shall, upon receipt of reasonable notice regarding commencement of litigation, at its own expense, investigate all claims and demands, —137— 12 attend to their settlement or other disposition, defend City in all actions based thereon with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other costs and expenses of any kind arising from any said liability, damage, loss, demand, claim, or action. Section 25. Insurance. (A) Lessee must secure and maintain at Lessee's expense, during the term of this Lease, a Commercial General Liability insurance policy with the limits and requirements shown on Exhibit B, which is attached hereto and incorporated herein by reference. Failure to maintain such insurance at the limits and requirements shown on Exhibit B constitutes grounds for termination of this Lease. (13) Lessee must provide proof, by Certificate of Insurance meeting the limits and requirements set out in Exhibit B ", to the Director and Risk Management or designee prior to commencing use of the Premises under this Lease. (C) Lessee must provide the Director and Risk Management thirty (30) days written notice of cancellation, intent not to renew, or material change of any insurance coverages required herein. Lessee shall, during the term of this Lease, provide copies of all insurance policies to the City Manager or the Director upon written request. (E) Lessee shall, prior to any addition or alteration to the Premises or to the Improvements, obtain clearance, in writing, from Risk Management, Section 26. Furniture, Fixtures and Equipment. City has no responsibility to furnish any equipment or furnishings for Lessee. Parks Director retains right to approve all furnishings, and fixtures that may be installed in the Premises, prior to installation. At end of the Agreement, any property remaining on the Premises shall revert to the City for the City's use or disposal. (D) Section 27. Director's Right to Access Premises. Lessee shall provide Parks Director with keys to the Premises and a current contact list in event of emergency. Parks Director and designee have right to enter the Premises during regular hours of operation or at anytime in an emergency. Section 28. Insurance. A. Lessee shall carry with an insurance company or companies satisfactory to the City Manager the insurance listed on the attached Exhibit. -138- 13 Section 29. Appropriations. Lessee recognizes that the continuation of any expenditure by the City, after the close of any fiscal year of the City, shall be subject to appropriations and budget approval providing for such expense as an expenditure in said budget. The City does not represent that said budget item will be actually adopted, said determination being within the sole discretion of the City Council at the time of adoption of such budget. Section 30. Warranty of Title. City does not warrant its title to the Premises. This agreement and the rights and privileges granted Lessee in and to the Premises are subject to all covenants, conditions, restrictions, and exceptions of record or apparent. Nothing contained in this Agreement may be construed to imply the conveyance to Lessee of rights in the Premises that exceed those owned by City. Section 31. Notices. All notices, demands, requests, or replies provided for or permitted, under this Lease, by either party must be in writing and must be delivered by one of the following methods: (1) by personal delivery; (2) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid; (3) by prepaid telegram; or, (4) by deposit with an overnight express delivery service, for which service has been prepaid. Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or ovemight express delivery service will be deemed effective one (1) business day after transmission to the telegraph company or ovemight express carrier. All such communications must only be made to the following: IF TO CITY: City of Corpus Christi Attn: Director of Park & Recreation P. 0. Box 9277 Corpus Christi, TX 78469 -9277 (361) 880 -3461 Either party may change the address to which notice is sent by using a method set out above. Lessee will notify the City of an address change within thirty (30) days after the address is changed. IF TO LESSEE: Miracle League of Corpus Christi, Inc. Attn: President P. 0. Box 531 Corpus Christi, TX 78403 Section 32. Reporting. Lessee shall submit reports listing the number of youth and teams registered by Lessee to play organized sports each year during the term of this Lease. The reports must be submitted to the Director by August 31st of each lease year. Section 33. Amendments. No alterations, changes, or modifications of the terms of this Lease nor the waiver of any provision will be valid unless made in writing and signed by a person authorized to sign agreements on behalf of each party. The City —139— 14 Manager is authorized to execute amendments which do not change the essential purpose of this Agreement. Section 34. Waiver. (A) The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, will not be deemed a waiver by said party of any of its rights hereunder. No waiver of any covenant or condition or of the breach of any covenant or condition of this Lease by either party at any time, express or implied, shall be taken to constitute a waiver of any subsequent breach of the covenant or condition nor shall justify or authorize the nonobservance on any other occasion of the same or any other covenant or condition hereof. (C) If any action by the Lessee requires the consent or approval of the City on one occasion, any consent or approval given on said occasion will not be deemed a consent or approval of the same or any other action at any other occasion. (B) (D) Any waiver or indulgence of Lessee's default of any provision of this Lease shall not be considered an estoppel against the City. It is expressly under- stood that, if at any time Lessee is in default in any of its conditions or covenants hereunder, the failure on the part of City to promptly avail itself of said rights and remedies which the City may have will not be considered a waiver on the part of the City, but the City may at any time avail itself of said rights or remedies or elect to terminate this Lease on account of said default. Section 35. Force Maieure. No party to this Agreement will be liable for failures or delays in performance due to any cause beyond their control including, without limitation, any failures or delays in performance caused by strikes, lock outs, fires, acts of God or the public enemy, common carrier, severe inclement weather, riots or interference by civil or military authorities. The rights and obligations of the parties will be temporarily suspended during this period to the extent performance is reasonably affected. Section 36. Publication. Lessee agrees to pay the cost of newspaper publication of this Lease and related ordinance as required by the City Charter. Section 37. Ca tions. The captions in this Lease are for convenience only, are not a part of this Lease, an do not in any way limit or amplify the terms and provisions of this Lease. Section 38. Severability. A. If, for any reason, any section, paragraph, subdivision, clause, provision, phrase, or word of this Lease or the application hereof to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Lease, or the application of said —140— Page 15 of 18 term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected thereby, for it is the definite intent of the parties to this Lease that every section, paragraph, subdivision, clause, provision, phrase, or word hereof be given full force and effect for its purpose. B. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Lease, then the remainder of this Lease is not affected thereby, and in lieu of each such illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to such illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Lease automatically. Section 39. Sportsmanship Program. Lessee shall require that all of its coaches and at least one family member of each youth participant shall complete a state or nationally recognized, or Parks Director approved, parent and coach sportsmanship program. Section 40. Complaint Notice. Lessee will post a notice at Premises, in a form approved by the Parks Director, that if any participant or spectator has any complaints or concerns they may contact the City at 880 -3461 and talk to the Parks Director, or designee. Executed in duplicate originals on the day of 2008. ATTEST: CITY OF CORPUS CHRISTI By: Armando Chapa City Secretary City Manager APPROVED AS TO LEGAL FORM THIS _, day of n F •, By: ,.uVZ List :( v 7) Assistant City Attor ey for City Attorney MIRACLE LEAGUE OF CORPUS CHRISTI, INC. By: �3r 1 4�t✓" ;� ". Name: Oar; � ,�,> n.-, Title: re-,.i> Date: —141— 2008. Page 16 of 18 STATE OF TEXAS COUNTY OF NUECES § This instrument was acknowledged before me on the day of L2iic1 2008, by �> �`' bk. Lai tc :_ , President of Miracle League of Corpus Christi, Inc., a Texas nonprofit corporation, on behalf of the corporation Notary Public, State of Texas: Printed Name: ��' / <i Commission expires: d )) I /= 4 AO CGI(� -142- fl OLGA DELACRUZ Notary Public, State of Texas 5 1 My Commission Expires gain;„ ` August 19, 2009 1 Page 17 of 18 EXHIBIT A Property Description either survey or metes and bounds -143- LEGAL DESCRIPTION 0.98 ACRE TRACT EXHIBIT "A" BEING A 0.98 ACRE TRACT OF LAND OUT OF LOT G, CLIFF MALJS TRACTS "C,D,E,F' AND G" A MAP OF WHICH IS RECORDED IN VOLUME 27, PAGE 95, MAP RECORDS OF NUECES COUN"1'Y,'TEXAS, ALSO BEING OUT OF A 91.70 ACRE TRACT OF LAND AS DESCRIBED IN DOCUMENT NUMBER 2002010930, OFFICIAL PUBLIC RECORDS, NUECES COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING at a 5/8" iron rod found for the northwest comer of said 91.70 acre tract, said corner being on the east right -of -way line of Airport Road, Thence North 88 °29'47" East with the north line of said 91.70 acre tract, a distance of 548.05 feet to the POINT OF BEGINNING for this herein described 0.98 acre tract of land; Thence North 88 °29'47" East, with the north line of said 91.70 acre tract, a distance of 215.00 feet to a point for corner; Thence South 01°30'13" East, across said 91.70 acre tract, and perpendicular to said last course, a distance of 125.00 feet to a point for corner: Thence South 48 °27'58" West, across said 91.70 acre tract. a distance of 163.25 feet to a point for corner; Thence South 88 °29'47" West, across said 91.70 acre tract, and parallel with its' north line, a distance of 90.00 feet to a point for corner; Thence North 01°30'13- West, across said 91.70 acre tract, a distance of 230.00 feet to the POINT OF BEGINNING and containing 42,888 square feet or 0.98 acre. NOTE: ALL BEARINGS ARE GRID BEARINGS BASED ON THE TEXAS COORDINATE SYSTEM FOR TIDE LAMBERT SOUTI I ZONE (NAD 1983) AND ALL DISTANCES ARE TRUE DISTANCES. r Larry A. her. RPLS Register 7'rofessional Land Surveyor Texas Registration No. 4147 Naismith Engineering, Inc. Date: Jolt SI Zoo, L).LAND'\R040M$n's0.9g ACRES.dnc Page 1 of 1 -144- °a 0 X8829'47 "E 548.05' 4t— POINT OF COMMENCING i 1 100 50 0 100 200 SCALE IN FEET CORPUS CHRISTI STATE SCHOOL POINT OF BEGINNING N88'29'47 'E 215.00' d o "o '1 0 91.70 ACRES DOC. # 2002010930 O. P. K., N.C., TX. NOTE: Al 1 BEARINGS ARF GRID RrARINGS RA SAM ON THE TEXAS COORDINATE SYSTEM FOR THE LAMBERT SOUTH ZONE (N40 1983) MW ALL DISTANCES ARE TRUE DISTANCES. I, Larry A. Fisher, Registered Professional Land Surveyor, hereby certify that this survey map was prepared from an actual on the ground survey made under my direction and supervision, and represents the facts found at the time of survey, and that this survey substantially complies with the current standards adopted by the Texas Boad of Professional nd Surveying. 3 , �J Larry A. -,er. R.P.L.S. Registere. • rofessional Land Surveyor Texas Registration No. 4147 Dale. ) 8‘ Zone 0.98 ACRE 42,888 SQ. FT. 558'29'47 "W 90.00' tic L EGEND: • = 5/8' !RF D = CALCULATED POINT EXHIBIT "B" EllNaismithEngineeringInc rNGI • ENVIRONMENTAL. SURVEYING 0.98 ACRE TRACT OF LAND OUT OF A 97.70 ACRE TRACT OF LAND AS RECORDED IN DOCUMENT # 2002010930 OFFICIAL PUBLIC RECORDS, NUECES COUNTY, TEXAS ewe' Lew set 1., -10'S 4n +e MIRACLELEAG a' LAE 8040 0T /16/09 9x 0 -145- Page 18 of 18 EXHIBIT B INSURANCE REQUIREMENTS LESSEE'S LIABILITY INSURANCE A. Lessee must not commence work under this agreement until insurance required herein has been obtained and such insurance has been approved by the City. Lessee must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been obtained. B. Lessee 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. A blanket waiver of subrogation is required on all applicable policies showing the following minimum coverage by insurance company(s) acceptable to the City's Risk Manager. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-Day written notice of cancellation, material change, non - renewal or termination is required on all certificates Bodily Injury and Property Damage Per occurrence / aggregate Commercial General Liability including: 1. Commercial Form 2. Premises - Operations 3. Products/ Completed Operations Hazard 4. Contractual Liability 5. Broad Form Property Damage 6. Independent Contractors 7. Personal Injury $1,000,000 COMBINED SINGLE LIMIT LIQUOR LIABILITY COVERAGE If liquor being served $1,000,000 COMBINED SINGLE LIMIT C. In the event of accidents of any kind, Lessee must furnish the Risk Manager with copies of all reports of any accidents within ten (10) day of any accident. II. ADDITIONAL REQUIREMENTS A. Certificate of Insurance: * The City of Corpus Christi must be named as an additional insured on the liability coverage, and a blanket waiver of subrogation is also required. 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 ". In lieu of modification of the ACORD form, separate policy endorsements addressing the same substantive requirements are mandatory. The name of the project must be listed under "Description of Operations" At a minimum, a 30-day written notice of cancellation, material change, non - renewal or termination and a 10 day written notice of cancellation for non - payment of premium is required. 2008 Miracle League lease ins. req. 6 -19 -08 ep Risk Management -146- Exhibit C DESCRIPTION OF IMPROVEMENTS TO BE CONSTRUCTED 14,000 square foot solid surface baseball field with backstop and fencing. There will be extra wide dugouts, wheelchair accessible bleachers, a concession stand and announcers box. Future improvements could be a scoreboard and stadium lighting. There will be a perimeter security fence to protect the improvements. -147- 15 AGENDA MEMORANDUM PUBLIC HEARING — ZONING (City Council Action Date: October 14, 2008) Case No. 0908 -01 Titan Support Systems, Inc.: A change of zoning from a "B -3" Business District to an "I -2" Light Industrial District resulting in a change of land use from commercial to light industrial consisting of light manufacturing on property described as Flour Bluff Park, Block 16, Lots 20 thru 25 & 45 thru 47, located at 9830 South Padre Island Drive, between McIver Street and Greenbay Drive. Planning Commission's Recommendation: Denial of the "I -2" Light Industrial District and in- lieu - thereof approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and the following four (4) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the 'B -3" Business District is a "light manufacturing for cutting and sewing of fabrics and elastics" use without outdoor storage. 2. Screening: A standard screening fence with a minimum height of six (6) feet shall be located next to residentially zoned property along the north boundary line of this Special Permit. The screening fence must be installed within one (1) year of the date of this ordinance. 3. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 4. 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. Staff Recommendation: Denial of the "1 -2" Light Industrial District and in -lieu- thereof approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and the following six (6) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the "B -3" Business District is a `light manufacturing for cutting and sewing of fabrics and elastics" use without outdoor storage. 2. Hours of Operation: The operation of the `light manufacturing for cutting and sewing of fabrics and elastics" use 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. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning Ordinance. 5. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 6. 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. Summary: • Request: The applicant has requested that the 1.25 acre lots be rezoned from "B -3" Business District to an "I -2" Light Industrial District to allow for light manufacturing consisting of cutting and sewing of fabrics without outdoor storage. • Existing Land Uses: The subject property currently has an unoccupied commercial building. The property to the east is a seafood retailer and a service station is located to the west. The property to the north consists of vacant Tots and single family homes, both with APZ -1 area. To the south is South Padre Island Drive, a freeway with an access roadway. -151- Agenda Memorandum Case No. 0908 -03 (Titan Support Systems, Inc.) Page 2 • Zoning: The `B -3" Business District is intended to accommodate a full range of commercial and miscellaneous uses including entertainment/amusement, retail, service stations, repair and parts services, and mini - storage facilities. The `B -3" Business 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. 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 on both the side and rear yards. • Air Installation Compatibility Use Zone (AICUZ): The Subject Property is located within Accident Potential Zone 1 (APZ -1) of the Air Installation Compatibility Use Zone ( AICUZ). The requirements of APZ -1 are to prohibit residential uses and non - residential uses which may congregate large groups of people. This is to ensure protection from any type of aerial accident that may potentially occur. • Utilities: A 6 -inch water is located on McIver Street and an 8 inch sewer line is available on Greenbay Drive. • Transportation: The subject property is adjacent to South Padre Island Drive a designated F -1 Freeway/Expressway, McIver Street a designated residential street, and Greenbay Drive a designated residential street. • Comprehensive Plan Consistency: The future land use 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 without protection measures would negatively impact the residential uses located to the northeast of the subject property. The subject property is located in the Flour Bluff 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 Flour Bluff Area Development Plan to ensure consistency of zone change requests with the Comprehensive Plan: Corpus Christi Policy Statements: • Land Use, Industrial, Policy a. PROVIDE ADEQUATE AND SUITABLY -ZONED LAND FOR BOTH LIGHT AND HEAVY INDUSTRIES. In recognition that not all industrial uses have the same location or service needs, industrially zoned land should be available in a variety of areas throughout the city. The quantity of available land should be abundant enough to keep land prices at a level that will not discourage new industries from locating in Corpus Christi. Provision of sufficient land for industry should take into account the wide variety of needs and activities associated with industrial uses. Staff Comment: Any rezoning to higher intensity uses should complement the existing or planned land use area. The appropriate areas would be adjacent to other industrial areas, which occur in this case. Yet, the subject property also is in very close proximity to single - family residences. • Land Use, Industrial, Policy d. WHEN AREAS ARE CONVERTED FROM RESIDENTIAL TO INDUSTRIAL ZONING, ACTIONS TAKEN SHOULD INCLUDE PROTECTING THE REMAINING RESIDENTIAL ENVIRONMENT. There are a number of industrially zoned areas containing housing concentrations that range in size from one- half to several full blocks. Although these areas are not suitable for continued long -term housing, they currently provide much needed housing for residents. If these areas are to be redeveloped for industrial uses, care must be taken to do so in a manner that is sensitive to the interests and needs of the residents. -152- Agenda Memorandum Case No. 0908 -03 (Titan Support Systems, Inc.) Page 3 Staff Comment: Any rezoning to industrial uses should be consistent with the existing or future land use designations. Where the effects of the industrial use will negatively impact the residential use in close proximity, the appropriate city response is to protect the residential area by mitigating the impacts of the proposed non - residential use and or denial of the proposed rezoning. Flour Bluff Area Development Plan (ADP) Policy Statements: • Policy Statement B.2 Future Land Use Suitability indicates those land uses that least likely to cause negative impacts to the surrounding area and which are thought to most directly benefit the public health, safety, and welfare of the community. Uses described as "also acceptable" might be permissible but they are likely to be negatively impacted by the most suitable use or surrounding uses unless steps are taken to buffer negative impacts. Steps that should be taken to prevent negative impacts and promote sensitive design are: a. Lighting from non - residential uses should be directed away from residential areas. b. Noise impacts from non - residential uses should be reduced by creating a buffer open space between the two areas. Such spaces may be landscaped areas, a street, a screening fence, larger setbacks, etc. Theses methods can be used singularly but are usually most effective when applied in combination to provide the desired effect. c. Placing low intensity activities next to single family uses. d. Because non - residential areas are not considered most suitable next to higher level roads, "also permitted" uses will need to be buffered from negative traffic noise impacts if they are located immediately next to the highway. Staff Comment: Additional Lighting requirements and screening requirements will be used to shield and buffer the light manufacturing use from surrounding properties. The potential use on the subject property is in close proximity to single - family residences which is a conflict with the above item c. • Policy Statement B.5 The City encourages development that is compatible with the Naval Air Station, Waldron Field, and Cabaniss Field. A primary concern associated with these naval facilities is land use compatibility in the Navy's Air Installation Compatible Use Zones (AICUZ). These are areas where, due to frequency of over flights and other factors, a measurable potential for aircraft accidents is present. The geographic areas covered by theses zones may change in the future due to the changes in operations at the air fields, changes in the aircraft using the runways or other factors. The City should maintain constant contact with the Navy to maintain accurate record of any changes to these zones and change as appropriate any City regulations pertaining to theses AICUZs. Within AICUZs there are three areas with different degrees of accident potential: Clear Zones (CZ); Accident Potential Zone I (APZ -1); and Accident Potential Zone 2 (APZ -2). Naval guidelines suggest that Clear Zones be purchased by the Navy as they are the most hazard areas. Accident Potential Zone 1 is the second highest area of concern and Accident Potential Zone 2 is the least hazardous of the three areas /. Existing zoning ordinance regulations do not comprehensively address concerns associated with land use compatibility in the Navy's Accident Potential Zones. Dense residential developments or non - residential uses which congregate large groups of people should be prohibited in Accident Potential Zones. Due to the significant amount of existing development within these APZs it is not feasible, at this time, to strictly follow the Navy's use guidelines which call for: a. Accident Potential Zone 1 — Prohibit residential uses and non - residential uses which may congregate large groups of people. b. Accident Potential Zone 2 — Limit residential development to I or 2 units per acre and prohibit non- residential uses which may congregate large groups of people. Given these concerns the following short and long term objectives are recommended: -153- Agenda Memorandum Case No. 0908 -03 (Titan Support Systems, Inc.) Page 4 Short Term Objectives a. The City encourages the Navy to continue purchasing any remaining clear zones areas as these are the most hazardous of the Navy's Air Installation Compatible Use Zones. b. Non - residential uses and residential uses which may congregate large groups of people should be prohibited from locating in APZ -1 or APZ -2 areas. The City should create an APZ Overlay Zone, for APZ areas, to prohibit the following new uses in any underlying base zoning districts: • Hospitals • Places of worship (indoor or outdoor) • Schools /universities • Stadiums /athletic fields • Fairgrounds /circus grounds • Child care centers/nursing homes • Theaters /auditoriums (indoor or outdoor) • Exposition halls • Clubs and bars with seating for more than 50 people or for more than 100 persons per acre • Amusement parks • Motels/hotels • Public swimming pools /natatoriums • Any other private or public facility for the assembly of more than 100 persons per acre any new residential use with a density of more than 1 unit per net (does not include street right -of -way or other public properties) acre for APZ -1 and 2 units per acre for APZ -2 except where the base zoning district is more restrictive, then use the base zoning residential density/use requirements. In addition, storage of explosives should be prohibited in a Clear Zone or Accident Potential Zone. c. City housing rehabilitation programs should be used in areas where residential land use is recommended and where residential zoning exists. d. Public purposes being served by existing and planned expansion to Corpus Christi State University are considered appropriate. Long Term Objectives: a. Continue overlay zone requirements contained in the short term objective and change the base zoning as recommended below. Consideration should be given to prohibiting new residential uses in APZ -1. b. Residential areas located within APZs and north of South Padre Island Drive (SPID) and between Flour Bluff Drive and the Laguna Madre Shoreline should gradually transition to commercial and industrial uses. The City should facilitate this transition by approving rezoning requests for commercial or industrial zoning where there is adjacent commercial or industrial zoning or where it can be shown that the rezoned area can protect adjacent residences. Gradually, residential uses would be phased out of this area. c. Property surrounding Waldron Field within CZs and APZs should not be rezoned for higher intensities than currently exists unless specified on the Future Land Use Plan Map. Table 4. Suggested Land Use Compatibility In Accident Potential Zone Land Use SLUCM NO. NAME CLEAR ZONE APZ -1 APZ -2 22 Textile mill products; Manufacturing N N' Y 23 Apparel and other finished products made from fabrics, leather, and similar materials; manufacturing N N2 N2 2. Within each land use category, uses exist where further evaluation may be needed due to the variation of densities of people and structures. For example, where a small neighborhood retail store may be compatible in APZ -II, a shopping center or strip shopping mall would be incompatible due to the density of development and concentration of people. -154- Agenda Memorandum Case No. 0908 -03 (Titan Support Systems, Inc.) Page 5 Staff Comment: The subject property is located in Accident Potential Zone -1 (APZ -I), however according to the above chart the light manufacturing use would not be allowed in APZ -L Furthermore, Note 2 states that upon further investigation if the new use does not congregate a large number of people than it would be an acceptable use. There are no further conflicts with the AICUZ regulations. Notification: Of the thirty-eight (38) notices mailed to the surrounding property owners seven (7) notices were returned in favor and two (2) (6.23 %) 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 (September 3, 2008) 3) Ordinance H IPLN- DIR\SHAREDIBeverlN008 CCScyroe0908MIAGENDAMEMO doc Bob Nix, AICP Assistant City Manager of Development Services -155- PIM/P jea Manager SrCP/CP Planning Dirmar CITY COUNCIL ZONING REPORT Case No.: 0908 -01 City Council Hearing Date: October 14, 2008 Applicant & Legal Description Applicant: Titan Support Systems, Inc. Owner: Padre Island Supply, Inc. (E.W. Douglas). Representative: Pete Alaniz Address: 9830 South Padre Island Drive, Corpus Christi, Texas, 78413 Legal Description/Location: Flour Bluff Park, Block 16, Lots 20 thru 25 and 45 thru 47, located at 9830 South Padre Island Drive with McIver Street to the west, Greenbay Drive to the east, Matlock Street to the north, and South Padre Island Drive to the south. Zoning Request From: `B -3" Business District To: "I -2" Light Industrial District Area: 1.25 acres / 54,600 square feet Purpose of Request: To allow for light manufacturing of powerlifting /weightlifting suits, singlets, shirts, knee and wrist wraps, which specifically includes cutting, silk screening, logo application and sewing of fabrics and elastics without outdoor storage. Existing Zoning and Future Land Uses Zoning Existing Land Use Future Land Use Site `B -3" Business District Commercial Commercial North "I -2" Light Industrial District Vacant Commercial South South Padre Island Drive/Freeway Commercial Commercial East `B -3" Business District Commercial /Professional Office Commercial West `B -3" Business District Commercial Commercial a 0 o Area Development Plan: The proposed rezoning to the "1 -2" Light Industrial District is not consistent with the adopted Future Land Use Plan designation of commercial uses. The "I -2" Light Industrial District does allow "Textiles, Fibers, and Bedding" uses defined in the Zoning Ordinance. The `B -3" Business District does not allow "Textiles, Fibers, and Bedding" uses as defined by the Zoning Ordinance. The subject property is located in the Flour Bluff Area Development Plan Study area. The Future Land Use Map supports commercial development. Additionally, the property and surrounding lots are within the Accident Potential Zone 1 (APZ -1) which supports non - residential uses. Map No.: 035032 Zoning Violations: None —156— Zoning Report Case No. 0908 -01 (Titan Support Systems, Inc.) Page 2 Staff's Summary: • Request: The applicant has requested that the 1.25 acre lots be rezoned from `B -3" Business District to an "1-2" Light Industrial District in order to allow for light manufacturing consisting of cutting and sewing of fabrics without outdoor storage. • Existing Land Uses: The subject property currently has an unoccupied commercial building. The property to the east is a seafood retailer and a service station is located to the west. The property to the north consists of vacant lots and single family homes, both with APZ 1 area. To the south is South Padre Island Drive, a freeway with an access roadway. • Zoning: The `B -3" Business District is intended to accommodate a full range of commercial and miscellaneous uses including entertainment/amusement, retail, service stations, repair and parts services, and mini- storage facilities. The `B -3" Business 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. 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 on both the side and rear yards. • Air Installation Compatibility Use Zone (AICUZ): The Subject Property is located within Accident Potential Zone 1 (APZ -1) of the Air Installation Compatibility Use Zone (AICUZ). The requirements of APZ -1 are to prohibit residential uses and non - residential uses which may congregate large groups of people. This is to ensure protection from any type of aerial accident that may potentially occur. • Utilities: A 6 inch water is located on McIver Street and an 8 inch sewer line is available on Greenbay Drive. • Transportation: The subject property is adjacent to South Padre Island Drive a designated F -I Freeway/Expressway, McIver Street a designated residential street, and Greenbay Drive a designated residential street. • Comprehensive Plan Consistency: The future land use 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 without protection measures would negatively impact the residential uses located to the northeast of the subject property. The subject property is located in the Flour Bluff 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 Flour Bluff Area Development Plan to ensure consistency of zone change requests with the Comprehensive Plan: -157- Zoning Report Case No. 0908 -01 (Titan Support Systems, Inc.) Page 3 Corpus Christi Policy Statements: • Land Use, Industrial, Policy a. PROVIDE ADEQUATE AND SUITABLY -ZONED LAND FOR BOTH LIGIHT AND HEAVY INDUSTRIES. In recognition that not all industrial uses have the same location or service needs, industrially zoned land should be available in a variety of areas throughout the city. The quantity of available land should be abundant enough to keep land prices at a level that will not discourage new industries from locating in Corpus Christi. Provision of sufficient land for industry should take into account the wide variety of needs and activities associated with industrial uses. Staff Comment: Any rezoning to higher intensity uses should complement the existing or planned land use area. The appropriate areas would be adjacent to other industrial areas, which occur in this case. Yet, the subject property also is in very close proximity to single - family residences. • Land Use, Industrial, Policy d. WHEN AREAS ARE CONVERTED FROM RESIDENTIAL TO INDUSTRIAL ZONING, ACTIONS TAKEN SHOULD INCLUDE PROTECTING THE REMAINING RESIDENTIAL ENVIRONMENT. There are a number of industrially zoned areas containing housing concentrations that range in size from one -half to several full blocks. Although these areas are not suitable for continued long -term housing, they currently provide much needed housing for residents. If these areas are to be redeveloped for industrial uses, care must be taken to do so in a manner that is sensitive to the interests and needs of the residents. Staff Comment: Any rezoning to industrial uses should be consistent with the existing or future land use designations. Where the effects of the industrial use will negatively impact the residential use in close proximity, the appropriate city response is to protect the residential area by mitigating the impacts of the proposed non - residential use and or denial of the proposed rezoning. Flour Bluff Area Development Plan (ADP) Policy Statements: • Policy Statement B.2 Future Land Use Suitability indicates those land uses that least likely to cause negative impacts to the surrounding area and which are thought to most directly benefit the public health, safety, and welfare of the community. Uses described as "also acceptable" might be permissible but they are likely to be negatively impacted by the most suitable use or surrounding uses unless steps are taken to buffer negative impacts. Steps that should be taken to prevent negative impacts and promote sensitive design are: a. Lighting from non - residential uses should be directed away from residential areas. b. Noise impacts from non - residential uses should be reduced by creating a buffer open space between the two areas. Such spaces may be landscaped areas, a street, a screening fence, larger setbacks, etc. Theses methods can be used singularly but are usually most effective when applied in combination to provide the desired effect. c. Placing low intensity activities next to single family uses. d. Because non - residential areas are not considered most suitable next to higher level roads, "also permitted" uses will need to be buffered from negative traffic noise impacts if they are located immediately next to the highway. -158- Zoning Report Case No. 0908 -01 (Titan Support Systems, Inc.) Page 4 Staff Comment: Additional lighting requirements and screening requirements will be used to shield and buffer the light manufacturing use from surrounding properties. The potential use on the subject property is in close proximity to single - family residences which is a conflict with the above item c. • Policy Statement B.5 The City encourages development that is compatible with the Naval Air Station, Waldron Field, and Cabaniss Field. A primary concern associated with these naval facilities is land use compatibility in the Navy's Air Installation Compatible Use Zones (AICUZ). These are areas where, due to frequency of over flights and other factors, a measurable potential for aircraft accidents is present. The geographic areas covered by theses zones may change in the future due to the changes in operations at the air fields, changes in the aircraft using the runways or other factors. The City should maintain constant contact with the Navy to maintain accurate record of any changes to these zones and change as appropriate any City regulations pertaining to theses AICUZs. Within AICUZs there are three areas with different degrees of accident potential: Clear Zones (CZ); Accident Potential Zone 1 (APZ -1); and Accident Potential Zone 2 (APZ -2). Naval guidelines suggest that Clear Zones be purchased by the Navy as they are the most hazard areas. Accident Potential Zone 1 is the second highest area of concern and Accident Potential Zone 2 is the least hazardous of the three areas/. Existing zoning ordinance regulations do not comprehensively address concerns associated with land use compatibility in the Navy's Accident Potential Zones. Dense residential developments or non - residential uses which congregate large groups of people should be prohibited in Accident Potential Zones. Due to the significant amount of existing development within these APZs it is not feasible, at this time, to strictly follow the Navy's use guidelines which call for a. Accident Potential Zone 1 — Prohibit residential uses and non - residential uses which may congregate large groups of people. b. Accident Potential Zone 2 — Limit residential development to 1 or 2 units per acre and prohibit non - residential uses which may congregate large groups of people. Given these concerns the following short and long term objectives are recommended: Short Term Objectives a. The City encourages the Navy to continue purchasing any remaining clear zones areas as these are the most hazardous of the Navy's Air Installation Compatible Use Zones. b. Non - residential uses and residential uses which may congregate large groups of people should be prohibited from locating in APZ -1 or APZ -2 areas. The City should create an APZ Overlay Zone, for APZ areas, to prohibit the following new uses in any underlying base zoning districts: • Hospitals, • Places of worship (indoor or outdoor) • Schools /universities • Stadiums /athletic fields • Fairgrounds /circus grounds -159- Zoning Report Case No. 0908 -01 (Titan Support Systems, Inc.) Page 5 • Child care centers /nursing homes • Theaters/auditoriums (indoor or outdoor) • Exposition halls • Clubs and bars with seating for more than 50 people or for more than 100 persons per acre • Amusement parks • Motels/hotels • Public swimming pools /natatoriums • Any other private or public facility for the assembly of more than 100 persons per acre any new residential use with a density of more than I unit per net (does not include street right -of -way or other public properties) acre for APZ -1 and 2 units per acre for APZ -2 except where the base zoning district is more restrictive, then use the base zoning residential density/use requirements. In addition, storage of explosives should be prohibited in a Clear Zone or Accident Potential Zone. c. City housing rehabilitation programs should be used in areas where residential land use is recommended and where residential zoning exists. d. Public purposes being served by existing and planned expansion to Corpus Christi State University are considered appropriate. Long Term Objectives: a. Continue overlay zone requirements contained in the short term objective and change the base zoning as recommended below. Consideration should be given to prohibiting new residential uses in APZ -1. b. Residential areas located within APZs and north of South Padre Island Drive (SPID) and between Flour BIuff Drive and the Laguna Madre Shoreline should gradually transition to commercial and industrial uses. The City should facilitate this transition by approving rezoning requests for commercial or industrial zoning where there is adjacent commercial or industrial zoning or where it can be shown that the rezoned area can protect adjacent residences. Gradually, residential uses would be phased out of this area. c. Property surrounding Waldron Field within CZs and APZs should not be rezoned for higher intensities than currently exists unless specified on the Future Land Use Plan Map. Table 4. Suggested Land Use Compatibility In Accident Potential Zone Land Use SLUCM NO. NAME CLEAR ZONE APZ -1 PZ -2 22 od Textile mill products; Manufacturing N N2 Y 23 Apparel and other finished products made from fabrics, leather, and similar materials; manufacturing N N2 N2 2. Within each land use category, uses exist where further evaluation may be needed due to the variation of densities of people and structures. For example, where a small neighborhood retail store may be compatible in APZ -II, a shopping center or strip shopping mall would be incompatible due to the density of development and concentration of people. Staff Comment: The subject property is located in Accident Potential Zone -1 (APZ -1), however according to the above chart the light manufacturing use would not be allowed in APZ -1. Furthermore, Note 2 states that upon further investigation if the new use does not congregate a large -160- Zoning Report Case No. 0908 -01 (Titan Support Systems, Inc.) Page 6 number of people than it would be an acceptable use. There are no further conflicts with the AICUZ regulations. Plat Status: The subject property is platted Street R.O.W. Street Urban Transportation Plan Type Existing R.O.W. And Paved Section Planned R.O.W. And Paved Section Traffic Volume South Padre Island Drive (F -1) Freeway /Expressway Classification 400 feet with a variable pavement width consisting of four to six lanes and a center median No changes Planned 14,331 as of 2005 Department Comments: • Policy Statements indicate the potential zone change is not consistent with the comprehensive plan. • The Future Land Use recommends commercial uses for the subject property; therefore the request for a change of zoning is inconsistent with the Future Land Use Map. • Staff Recommendation: Denial of the "I -2" Light Industrial District and in -lieu- thereof approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and the following six (6) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the `B -3" Business District is a "light manufacturing for cutting and sewing of fabrics and elastics" use. 2. Hours of Operation: The operation of the `light manufacturing for cutting and sewing of fabrics and elastics" use 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. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning Ordinance. 5. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 6. 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. —161— CASE # 0908 -01 1. NEIGHBORHOOD - 2006 AERIAL rASubject Property Refer to Map 2 for Neighborhood Existing Land Use Also a vaiiable at www.cctexas.com • iLOCATION MAP' SUBJECT ''ROPER TY l vni Corms Chrkii CASE # 0908 -01 1. NEI■ MBORHOO© - 2006 AERIAL rASubject Property Refer to Map 2 for Neighborhood Existing Land Use Also a vaiiable at www.cctexas.com SUBJECT `inr9OPERTY ILOCATI01•1 MAF Wr City or Corpus Christi CASE # 0908 -01 2. NEIGHBORHOOD - EXISTING LAND USE n Estate Residential. - ER - Low Density Residential. - LDR Med Density Residential - MDR c'w't High Density Residential. - HOR mobile Home - MH L - J Vacant - VAC P'ofes sional Office -PO Commercial. COM [ 0 1 Light industrial - LI L rc i Heavy Industrial - 1-11 ,'`Pl Public Semi- Public -PSP SUBJECT ''ROPER !-Y iLOCATION MAP' ? P - o- ? N 4i ic . C> . 40 �'` /S. /,A $USJEC:T, • tS /PROPERiY'`� / CASE # 0908 -01 2. NEIGHBORHOOD - EXISTING LAND USE m Estate Residential. - ER - Low Density Residential. - LDR - Med Density Residential. - MDR irs`z High Density Residential. - HDR Mobile Home - MH I vie] Vacant -VAC ,fessional Office - PO - - Commercial - COM u i _IAI(Industrial - LI H -avy LnlusMat -H7 P ^,n Public Semi - Public - PSP LOCATIO•! MAF 0 4,S • DewNment or Deve'opmen: oen¢ee SUBJECT `inr9OPERTY Wr City or Corpus Christi conk coral - Cnm7 C 01.4 BBB FTy Ch7 E GOh ^. Z; 0 T COAT GOiI1 Onr CASE # 0908 -01 3. NEIGHBORHOOD - FUTURE LAND USE Ian] Ayricultural/Ruiai - AR [s[:.] Tun tin;- TOR Rn 1 Estate Residential - ER Pe PI Ras earth/Business Park RBP Low Density Rea- LDR L) ] Light Industrial - Ll ' Med Density Res. - MDR 1 ^ -] IiFavy Industrial - HI J High Density Res. - NOR (p` - =] P• ublic Semi - Public - ASP ln Mouile Home - MH 1 J Park Vacant • VAC )c] Drainage Corridor -DC Professional Office - PD - -- Dredge Placement - DP Giant ciai -COM 1 1 W• ater i+ -1 C• onservation/Preservation - CP Transportation Plan Arterials - Coflecto,s E 'res -sways ____. Parinvay + ?+i+ Railroad t114t iLOCATION MAP' SUBJECT ''ROPER rY conk coral - Cnm7 C 01.4 BBB FTy Ch7 E GOh ^. Z; 0 T COAT GOiI1 Onr CASE # 0908 -01 3. NEIGHBORHOOD - FUTURE LAND USE Ian] Ayricultural/Ruiai - AR [s[:.] Tun tin;- TOR Rn 1 Estate Residential - ER Pe PI Ras earth/Business Park RBP Low Density Rea- LDR L) ] Light Industrial - Ll ' Med Density Res. - MDR 1 ^ -] IiFavy Industrial - HI J High Density Res. - NOR (p` - =] P• ublic Semi - Public - ASP ln Mouile Home - MH 1 J Park Vacant • VAC )c] Drainage Corridor -DC Professional Office - PD - -- Dredge Placement - DP Giant ciai -COM 1 1 W• ater i+ -1 C• onservation/Preservation - CP Transportation Plan Arterials - Coflecto,s E 'res -sways ____. Parinvay + ?+i+ Railroad t114t iLOCATION MAP' SUBJECT ''ROPER rY CASE # 0908 -01 4. SITE- 2006 AERIAL Subject Property Refer to Map 2 for Neighbothood °. • ; Lae:d Use. Also available at 4 : :. cctexas corn SUBJECT `inr9OPERTY LOCATIO•! MAF Wr City or Corpus Christi CASE # 0908 -01 5. SUBJECT PROPERTY SUBJECT RQPERTY aA (LOCATION MAP] City of Corpus Christi s CASE # 6. SITE EXIS NOTICE AREA M Arrvrtmelit Haase District. . AA Apartment cu e66tnd A-2 A.,hment HndSe District AB Pra`o,iin9.10ffi, Dst,id H T A t rrt- Tainst Dislnot P-1 NI, ghlmhnrd Bt; rocs r strict. B-IA NeleFTmhooe Business Ciilne P-e Batilront Busine,s Disthd £z4 Barrier Island Business Blstrict &a Buaness District P-4 fetiiel Busine,s DI51rkt B-5 Prlmay Buciness D61htl B-o Business Care marine an Corp, FJMSti B=ach D .lorl Dist Farmm R Ural olslrh{' HO Histon-3[ Cu ral [anuinaek Pre^.eiv all0n 0908 -01 TING ZONING, & OWNERSHIP 1-1 Limited lhduviii.,1 Distntt Lott Industrial Dis4at Hea✓yind warp] ➢Isms uo Planned Unit ecrelapmem. P1� One FeMily tl.+eII113 Oismcr R 1 One ,ram lly Gxelllno District R -1C One Famifi Dwelling DI3iinI R 2 Multiple noel g Crnet RA One: Fdmuo Dv II,io DieelCt RE Residential Enlate Din R -TH Townhouse Pneillim_ Distrr_t SP Spacial PBrnllt T IA level TraVei Park Dstllct T-1B Manufactured H ePark District T 10 Manufactured HOme SubdNsinn Distt ICI n lrropero- C'''''eTS faVOr A a don Ol n : en e, r„ opo ,,.,on is SUBJECT RQPERTY LOCATIO MAPj City of Corpus Christi s CASE # 0908 -01 Air Instillation Compatability Use Zones 1 Legend Runty A. " -'dent Potential 'one 1 Control A,Acient Potential Zone Zone 2 SUBJECT ITPROPERTY LOCATIO•! MAF Wr City or Corpus Christi w -8842 /� \s 1 f ` . 7 22' LACE 1 23 23 24 / 85 / / From: "8.3" To: "B -3 /SP B 3 ?-A / ,/ 7 /8 2 s \/ AFL` UR[ / \13 /I V8-24 / o/ 1O& VP Bg CASE # 0908 -01 EXHIBIT A PLANNING COMMISSION RECOMMENDATION From: "B -3" To: "B -3 /SP" ORDINANCE: 7 14 W/03:2008 Pie %r Cey SRR Department of Develop me 87Stes SUBJECT ROBERT). aA (LOCATION MAP] City of Corpus Christi w -44 0/ 'ACRE 15 14 25 J7 / 0 TF\ J '8.422 -. LACE PIE I __ .37 0 ` . 7 22' 41 2 / 4a / f 15 J 20 / 40 / 4 2 45 .: FL,©UR BLUFF PAi?4X / / 228814 23 23 24 / 45 / From: "B -3" To: "!-2" 2 s \/ 8,10 FLOUR 11 284 f / \13 8228814 7/ 0/ 1008, Bg CASE # 0908 -01 EXHIBIT B APPLICANT'S REQUEST From: "8 -3" To "1 -2" ORDINANCE: 7 1A &23/2008 Pt e %r CBy SRR Department of Developmeenirces SUBJECT RQPERTY aA (LOCATION MAP] City of Corpus Christi s w 14 25 \ 16 2 LACE PIE I __ .37 /� \s 1 f ` . 7 22' 41 2 18 r/ 4 3S f� 4a f 16 zo 40 4 2 45 .: FL,©UR BLUFF P1144X / / '1-88814 2 23 24 / 85 / / From: "8.3" To: "B -3 /SP i B 3 ?-A / ,/ 111 811.9419 7 /8 2 s 17. AFLOUR[ [i -18.1 4 0- /2 w A Bg CASE # 0908 -01 EXHIBIT C STAFF RECOMMENDATION From: "B-3" To: "B -3 /SP" ORDINANCE: 7 14 f2D3:2008 Pie %r CBy SRR Department of Develop me firTSices SUBJECT RQPERTY aA (LOCATION MAP] City of Corpus Christi s Zoning Report Case No. 0908 -01 (Titan Support Systems, Inc.) Page 7 Planning Commission's Recommendation: Denial of the "I -2" Light Industrial District and in- lieu - thereof approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and the following four (4) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the `B -3" Business District is a "light manufacturing for cutting and sewing of fabrics and elastics" use 2. Screening: A standard screening fence with a minimum height of six (6) feet shall be located next to residentially zoned property along the north boundary line of this Special Permit. The screening fence must be installed within one (1) year of the date of this ordinance. 3. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 4. 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. Number of Notices Mailed — 30 within 200 foot notification area; 8 outside notification area Favor — 7 (inside notification area); 0 (outside notification area) *Opposition — 2 (inside notification area) (6.23 %); 0 (outside notification area) (As of September 23, 2008) Attachments: I. 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. Air Installation Compatibility Use Zone (AICUZ) Map 8. Comments received from Public Notices mailed 9. Notice Mailing List 10. District Uses 11. City Charter — Article V- Planning —162— COMMENTS RECEIVED FROM PUBLIC NOTICES MAILED Case No: 0908 -01 Name: Titan Support Systems, Inc. Circled = FAVOR X = OPPOSED (Note: The number(s) next to name corresponds to the attached map.) Total number mailed: 38 Returned undeliverable: 3 I. Notices returned from within the 200 -foot notification area: Favor: 7 #8, #9, #10, #11, #16, #29, (13.14 %), Padre Island Supply, Inc., 9830 S.P.I.D. — No comments #25 (0.57 %), Kay Lynn Mecom, 2642 Meadowood - No comments Opposition: 2 (6.23 %) 41 (0.10 %), James Preis, 2239 Joyce — No comments #24 (6.13 %), Coastline Management Services, LP, (Robert F. Pena, member) 7813 Etienne Dr. — "1010, 1005, 1009, 1013, 1017, 1021 Behmann; 1022, 1018, 1014, 1010, 1002 McIver; Too noisy for our residents. This will negatively affect my business. Proximity too close to apartments /residences." II. Responses received from outside the 200 -foot notification area: Favor: 0 Opposition: 0 III. Responses received from owners /applicants of subject area: Favor: 1 Owner, Padre Island Supply, Inc., 9830 S.P.I.D. — No comments Opposition: 0 —183— N. Unsolicited responses received concerning subject area: Favor: 0 Opposition: 0 H:\PLN- DIR\SHARED\Beverly\2008 PC\2008 Public Comments \0908- 01.doc -184- ^N a 1 el 1151111 aninigha g I % m oemdidd>WN+00oj0U.CaN , o mJww.awm,oa NNdd°"th NNNd°rxTTTTTTT:r:T ar: Nx�u,i ii g gssggg00000000 °§0000000 a w 88+8ann nz 899994s gg°2osg8W"" 8m-e ogiss • a g00080 9N0 OWO +m '0°1 z 8ggggg t Kggrmm2V :00K66s� a-- 0065awt's�Lli�E0 S� Dar ill � Wm�0 TOxxm;. oa„,e000QQ0oe0Q0 VVaaNi0pomm w0 ;ea ›MM-12.RM 088, 00.0000 :AA>mmmm0 (0T]ZzHO N pq 2AOOA mT Y Sm0 O)A a2 4a Jy To ZAg OAN;IITSN 4- !A�A9 zzzz ^ �m'�]'�"� Ll0 V 22 OA 0000 444-14 0000 AA9A N N(/p� y1 N 00 0 gp�a0 4 x 00 A C _ S_Y io. A AP A ua g. 2 Ira _ g 111119 �o m oAPr r �***0) 5 m > fl ogg aam S� o � mmmmmt L m Mir r VO 0 4' ZSS3NOOV 000 00 n ;on nn0gnnogn00BnosSSSnnn8nno _0 om00 00 0 000 000 000 000 000 d�� 19999999999999999999999999999 �00 CjCCCCCCCCCCCCCCCCCCCCCCCCCCCC 900 00 0 0.0000.00000.00.00.000.0N0N0 S 0 noonnonnnoonnnonnnon000n00on „m: 1 xxxxxxxxxxxxxxxxxxxmxxxxxxxx = ��' P mmmxAAAPAAm am mmzmmmmmmm AAA NN4y 4 y4 44y4 4E'.9444..yi...44- i-- %J(XX% % X XXJ�E mt -gO -:o 0:g .,.82d9 mN N N 44 51y%X4444Xyy4X444%44444 4y % 4444 N 66JVJV qVq VJJ qVb qq qqqq 66qq q 40 - -�L �� » P��O�� >A���YO��� >YY 9 rj i� ONfi0N01J0000+ +000 ++ +00000 >PS10A N > im �soIMPA>MNo"omUOOsWtimn =e 8tttu"8 ":2 ++000VVN0000200000uN Jmu 0000 00000000000000o 0 0000000 00000 0 —185— iI C - 83 - ARTICLE 15. "B-3" BUSINESS DISTRICT REGULATIONS Section 15-1 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 13-3" 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 15-2 Use Regulations. A building or premises shall be used only for the following purposes: ( 1) Any use permitted in the "13-1" Neighborhood Business District except dwellings, boarding and lodging houses. ( 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 tires sales and service with 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-3 -186- - 84 - (19) Promotional events, subject to the special conditions set forth in Article 27A, Section 27A -2 of this Ordinance. (20) Service stations. (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 15-3 Parking Regulations. The parking regulations for permitted uses are contained in Article 22. Section 15-4 Off- street Loading Regulations. The off - street loading regulations for permitted uses are contained in Article 23. Section 15-5 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: 15 -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 -IA ", "R -1B ", "R -1C" "R -2 ", "A -1" "A -1A" or "A -2" residential district. 15 -5.02 There shall be a rear yard not Tess than ten (10) feet in depth on the rear of a lot adjoining an "R -IA ", "R -1B", "R -IC" "R -2 ", "A -1 ", "A -1A ", or "A -2" residential district. 15 -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 15-6 Supplementary height, area, and bulk regulations are contained in Article 27. 02/08 B -3 -187- - 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. 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. ( 9) (10) Self - service Laundries. (I I) 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 Height 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 -188- -50- 12 -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. 12 -5.02 There shall be a rear yard not Tess than ten (10) feet in depth on the rear of a lot adjoining an "R -IA ", "R -IB ", "R -1C ", "R -2 ", "A -1 ", "A -IA ", or "A -2" residential district. Section 12 -6 Supplementary height and area regulations are contained in Article 27. 02/08 -189- 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 -I A" 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 -190- - 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 -191- - 25 - ARTICLE 5. "R -1A" 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: ( 1) 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 learning. 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 1, 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 -1A -192- - 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 less 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 permitted. 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 -1 A -193- - 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 -IA" District all lots in platted subdivisions may comply with the lot area and yard requirements of the "R -13" District as minimum requirements. Section 5 -6 Supplementary height, area, and bulk regulations are contained in Article 27. 02/08 -194- R -IA - 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 Regulations. 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 light 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 treatment, 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 Beverage 02/08 1-2 -195- - 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 (manufacturing 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 Tess 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 Tool, 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 02/08 1 -2 -1 9 6- - 97- Hat bodies of fur and woof 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 Paper Products Basket and hamper (wood, reed, rattan, etc.) Box and crate 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) Trader, 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 intemal 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 (i) 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 -197- - 98- 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 Toad 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 boated 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) (I) 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 pernitted 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 less than ten (10) feet in width on the side of a lot adjoining an "R -IA ", "R -IB ", "R -2 ", "A -I ", "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 -IA ", "R -113", "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, cattery, 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 less than 100 feet from all required yard lines abutting a residential district. 02/08 1 -2 -198- -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 -199- - 87 - ARTICLE 17. "3-5" 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 light 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: ( 9) 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. Candy manufacture. Greenhouse or conservatory, commercial. Drug or pharmaceutical products manufacture. Laboratories, research and experimental. Millinery manufacture. Optical goods manufacture. 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) 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 -200- - 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 Tess than ten (10) feet in width on the side of a lot adjoining an "R-1A", "R -1B ", "R -IC" "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 -IC" "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 -201- B-5 - 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 -1B ", "R -1C" "R -2 ", "A -1 ", "A -1A ", 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 -IA ", "R -1B ", "R -IC" "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 B-4 -202- City Charter - Article V ARTICLE V. PLANNING See. 1. Purpose and Intent. The city 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. See. 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 council 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. See. 3. Power and Duties of Planning Commission. (a) The planning commission shall: (1) Reviews and make recommendations to the city council 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 council 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 city government shall cooperate with the planning commission in furnishing 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. See. 4. The Comprehensive Plan. The city council 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 policies 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 -203- 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, policies 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 council, 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. —204— MINUTES REGULAR PLANNING COMMISSION MEETING Council Chambers- City Hall Wednesday September 3, 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 ABSENCES: James Skrobarczyk Govind Nadkami I. CALL TO ORDER Garza. 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 Saldana, Special Services Bob Payne, AICP, Senior City Planner Jay Reining, First Assistant City Attorney Yvette Aguilar, Attorney I Beverly Lang- Priestley, Recording Secretary A quorum was declared and the meeting was called to order at 5:36 p.m. by Chairman B. ZONING 1. New Zoning a. Case No. 0908 -01 Titan Support Systems, Inc. - A change of zoning from a "B -3" Business District to a "I -2" Light Industrial District resulting in a change of land use from commercial to light industrial consisting of light manufacturing Flour Bluff Park, Block 16, Lots 20 thru 25 & 45 thru 47, located at 9830 South Padre Island Drive. between McIver Street and Greenbay Drive. Commissioner Adame stated he will abstain from this case. Mr. Payne presented the above case via Power Point stating the property is located along South Padre Island Drive on the north side in the Flour Bluff area, between McIver Street to the west and Greenbay Drive to the east. The applicant has requested rezoning from a "B -3" Business District to an "I -2" Light Industrial District resulting in a change of land use from commercial to light industrial consisting of light manufacturing. Mr. Payne stated the purpose of the change is to accommodate an intemet mail order business that specializes in the business of strength sports consisting of cutting and sewing of fabrics. The applicant does not require outdoor storage and all activities of the business will be conducted indoors. The building is a 12,000 square foot building with parking in the front next to S.P.I.D. The `B -3" Business District does not allow "Textiles, Fibers, and Bedding" uses as defined by the Zoning Ordinance. The "I -2" Light Industrial District does allow "Textiles, Fibers, and Bedding" uses defined in the Zoning Ordinance. -205- Planning Commission Minutes September 3, 2008 Page 2 Mr. Payne stated staffs recommendation is Denial of the "I -2" Light Industrial District and in- lieu - thereof approval of a Special Permit for "light manufacturing use for cutting and sewing of fabrics and elastics" without outdoor storage on the subject property and the following seven (6) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the `B -3" Business District is a "light manufacturing for cutting and sewing of fabrics and elastics" use. 2. Hours of Operation: The operation of the "light manufacturing for cutting and sewing of fabrics and elastics" use 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. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning Ordinance. 5. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 6. 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. In response to Commissioner Martinez stating the main reason for the objection to the "I -2" is 1) because anyone else that goes in there could probably do whatever they wanted; and 2) there's more congregation in the I -2 than there is on a B -3, Mr. Payne stated he didn't mean that the I -2 is better from that instance, but this particular use appears to be well suited to the lower end of the density scale. Commissioner Martinez stated that the city keeps coming back to special permits, and I guess Commissioner Skrobarczyk never understood that the main reason for that is that the city can control more of what is happening with a special permit than if an "I -3" were approved. Commissioner Martinez pointed out that that is why staff keeps coming back to that. Commissioner Loeb stated that the city has in its Master Plan policy statements that people can't build tall buildings in the approach zones for the navy bases. Mr. Payne stated that we have an ordinance that controls height and it's the military airport zoning ordinance and it institutes what we call an imaginary surface around our airports to control height. Commissioner Loeb stated that technically we have an overlay, but we just don't really mark it on anything and he believes we should start marking it on stuff so people understand. Mr. Payne responded that we can take a look at it and that we should at least make it very available, however, it is a very complex map and difficult to interpret. In response to Commissioner Loeb, Payne stated that low- density industrial park may be a good match for that area and maybe we should change the land use plan. Chairman Garza stated he believes that area is still in transition and it's still too early to tell what's actually going to work there in terms of commercial. What was there in terms of commercial activity in the '60s is different than what will be there twenty years from now. In terms of local commercial, you're probably looking at businesses that actually cater to the local population, Flour Bluff, as it re- develops. Chairman Garza stated he believes this particular venture by this business to redefine itself in light industrial is a great attempt at creating a viable business -206- Planning Commission Minutes September 3, 2008 Page 3 where it might be difficult to continue to exist the way they were, and believes a special permit is extremely appropriate at this time. Public hearing was opened. Pete Alaniz, president of Titan Support Systems, stated it is a clean industry — light manufacturing and is a responsible corporate citizens with no toxic waste, no noise pollution, no fumes or gas. Other companies within the neighbor include marine companies repairing boats dealing with oil, transmission fluids, potential hazmat materials. Mr. Alaniz stated they are a mail order company and manufacture goods for the sport of power lifting and weight lifting. Mr. Alaniz stated there are only four companies registered within the International Power Lifting Federation to supply this type of gear to the athletes, and they are one of them right here in Corpus Christi. Mr. Alaniz stated they bring money from outside of the state to Corpus Christi and have a payroll that is over a million dollars this year and will bring employment to the city. Mr. Alaniz stated there will be less retail traffic with his company than with the current company that is there and that his is a closed shop, working the phones, the emails, the faxes. The only thing you will see come into the business is FedEx and UPS trucks and the only waste seen from them will be fabric scraps. They will be the business you never notice, but at the same time will be providing employment to people, contributing back to the community. A few of the issues with the Special Permit Mr. Alaniz pointed out is if you require a screened fence to surround the property it will be an eye -sore, a graffiti canvas and asked what difference is it if you have 50 retail customers park there or 50 employees park there? As it is right now, it's no different than the parking at HEB or Wal -Mart. There is no screen around them and they have hundreds of cars. The other issue is hours. Mr. Alaniz stated he has no intentions of running any evening shifts or any grave yard shifts, but just on the principle of the thing, if a situation arises where he needs to get an order out and has to put in a couple extra hours, it'd be nice to know that he can do that. There are no houses adjacent to the B -3 which is in the front. All the rental properties are adjacent to the I -3 in the back, so there are actually no residences that would be impacted by that. Commissioner Garza stated the screening fence, by and large, is something that staff recommends because of the fact that when you do have a manufacturing concern sometimes there is materials or items that are staged outside that then becomes unsightly. In response, Mr. AlanizI assured him that they have no intention of putting outside storage. And even if he did, the property in question has I -2 that is in the back and that is where it would go. It would go into the property that is already I -2. Mr. Payne agreed that some relief is needed on the screening fence requirements and stated that where the parking lot is located there would need to be landscape screening, ie, a four -foot landscape area which is required around parking lots. The parking should be subject to Article 27. The property to the east on the frontage road toward Greenbay has two houses, one residential and one commercial use. No residence on the west to protect with a screening fence. The parking lot abuts that property along McIver Street and to the Frontage Road therefore no landscaping required. Then, we wouldn't need a fence next to the commercial use that exists to the east. Mr. Payne further stated that we don't need a screening fence along certain edges where there is adjacent "I -" zoning. Follow Article 27 because screening fences are required where it is next to a residential district. A screening fence needs to be next to Lot 44, which is zoning residential. Mr. Payne stated some buffer for the I -2 uses which could be strictly outdoor storage of any kind adjacent to a freeway is a concern. Behind the uses next to the freeway where there is less public visibility by the arriving public to the Island, it's a little less visibility to the 1 -2 as opposed to having an industrial character along this major highway. -2b7- Planning Commission Minutes September 3, 2008 Page 4 In response to Commissioner Loeb stating that if instead of doing a special permit, we left B -3 zoning on the parking lot section in the front and zoned the rest of it 1 -2, which would solve staff's issue, Mr. Payne responded that staff would rather keep the logical existing line as commercial and show it as commercial and that is what special permit rezoning would do. We have had for years a standard line of commercial uses along SPID and we don't want to erode that. Therefore, the Special Permit has some advantages. Item #3, the standard screening fence, we could change that to where adjacent to a residential district and that would cover it. And they would have to meet Article 27 in Item #4 under Landscaping. In response to Chairman Garza, Mr. Payne stated that the landscape ordinance is not going to kick in because they are not expanding the use by what the ordinance calls for. Therefore, what might be advisable for the special permit to say on landscape screening is at least landscape screening in the front, and that wouldn't trigger them having to meet the full requirements of the landscaping ordinance. Jim Boller, 400 Mann, Suite 400, representative for applicant, came forward stating that several things previously addressed are right on target. TXdot freeway improvements have the complexion of the area to a point where industrial is a more appropriate use. As for the fencing, the applicant's property will be divided if there is a fence between his I -2 and B -3. Another issue is the hours of operation. Mr. Boller stated he believes we are e stepping on holy ground when we try to tell people what hours they can work and cannot work, especially in this case where it is all inside the 12,000 square foot building. If there is a large job that needs to get out and he's told he can't work past a certain hour, that's criminal. Also, the applicant's first preference was to leave the parking lot B -3 and rezone the remainder 1 -2, but they were advised that the parking would also need the industrial zoning.. Commissioner Garza stated that with loading and unloading being done on Greenbay there would be a benefit to putting screening fence between the residential house and the industrial area. Closed Public Hearing. Commissioner Garza stated that he, along with Mr. Boller, feels that we are handcuffing the business by putting in hours of operation because if they do get into a situation where they can't meet their delivery schedule overtime would be needed. In manufacturing it is very important to give flexibility for additional shifts, particularly if it is not going to impose or impede on the existing neighbors. Commissioner Loeb motioned that the front section along the line created by the farthest line of the lots 15 and 16 going across between Greenbay and McIver towards SPID be B -3 and the other section be I -2. That means that the front parking lot will be B -3 and the rest of the site will be I -2. That would mean they still have to screen the 1 -2 from the residential and it protects from outdoor storage being in the front parking lot which remains B -3, and it preserves the parking lot as being a parking lot instead of getting a fenced wall. In response, Mr. Payne stated that a special permit on the parking lot would be required to allow it to serve the I -2 use that is behind it, because it is a commercial district and it cannot supply parking to the industrial use. For example, a parking that is located in an apartment district cannot be used to supply parking for the bar next door. Commissioner Loeb amended his motion to reflect that. Otherwise, no conditions, and no hours of operation restriction. -208- Planning Commission Minutes September 3, 2008 Page 5 There was no second on the motion. Commissioner Martinez made a motion to go with the "B -3" with a Special Permit and have staff follow recommendations stated in this meeting as for as the fence on Lot 45, the landscaping in the front, and lighting and to eliminate the hours of operation. Motion seconded by Huerta. Commissioner Loeb reiterated that he believes that making them do landscaping when we don't have an ordinance that actually says that that's what we want people to do landscaping wise and that by doing so we are creating a box where they have to come up to code on business landscaping whereas if it just stayed the same they wouldn't have to do it. Commissioner Martinez amended the motion to no additional landscaping. Commissioner Huerta seconded the amended motion. Motion passed unanimously. B -3 with a Special Permit to allow light manufacturing, with a screening fence on the north residential property line, no additional landscaping and with no restrictions on hours of operation. Commissioner Adame abstained from all discussion and action on this case. H:\PLN- DIR\SHARED\BEVERLY\2008 CC\SEPT08 \0908- OIMINUTES.DOC -209- 7 AN ORDINANCE -,Page 1 of 4 AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY TITAN SUPPORT SYSTEMS, INC., BY CHANGING THE ZONING MAP IN REFERENCE TO FLOUR BLUFF PARK, BLOCK 16, LOTS 20 THROUGH 25 AND 45 THROUGH 47, FROM "B -3" BUSINESS DISTRICT TO "B -3 /SP" BUSINESS DISTRICT WITH A SPECIAL PERMIT TO ALLOW LIGHT MANUFACTURING USE FOR CUTTING AND SEWING OF FABRICS AND ELASTICS WITHOUT OUTDOOR STORAGE, SUBJECT TO FOUR (4) 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 Titan Support Systems, Inc., 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, September 3, 2008, during a meeting of the Planning Commission, and on Tuesday, October 14, 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 Flour Bluff Park, Block 16, Lots 20 through 25 and 45 through 47, located at 9830 South Padre Island Drive, between McIver Street and Greenbay Drive, from "B -3" Business District to "B -3 /SP" Business District with a Special Permit to allow for light manufacturing use for cutting and sewing of fabrics and elastics without outdoor storage on the subject property, subject to four (4) conditions. (Zoning Map 035032) (Exhibit A) SECTION 2. That the Special Permit granted in Section 1 of this ordinance is subject to the following four (4) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the "B -3" Business District is a 'light manufacturing for cutting. and sewing of fabrics and elastics" use without outdoor storage. C: \Documents and Settings \YvetteA \My Documents1Deve2p runt Services\2008 Ordinances & Resolutions \ORD-zoning09oB-01- Titan-B-3 to-B -3- special permit 10.14.08.doc — 1 U Page 2 of 4 2. Screening: A standard screening fence with a minimum height of six (6) feet shall be located next to residentially zoned property along the north boundary line of this Special Permit. The screening fence must be installed within one (1) year of the date of this ordinance. 3. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 4. 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 14th day of October, 2008. C:\Documents and SettingswvetteA \My Documents \DevelopphhSarvices\2008 Ordinances & Resolutions \ORD-zoning090B-01- Titan-B-3 to -B -3- special permit 10.14.08.doc ATTEST: Armando Chapa City Secretary APPROVED: October 6, 2008 QtteA, 'a$ Assistant City Attorney For City Attorney Page 3 of 4 CITY OF CORPUS CHRISTI Henry Garrett Mayor, City of Corpus Christi C: \Documents and Settings \YvetteA \My Documents1Develpppipnt Services\2008 Ordinances & Resolutions\ORD-zoning0908-o1- Titan-B-3 to -B -3- special permit 10.14.08.doc — 1 L 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 C: \Documents and Settings \YvetteA'My Documents \Devel nb Services\2008 Ordinances & Resolutions\ORD-zoning0908-01- Titan-B-3 to -B -3- special permit 10.14.08.doc 3 From: "B -3" To: "B -3/SP UR B JIFF 12 10/03/2008 By: SRR Department of Ow ... ieee CASE # 0908 -01 EXHIBIT A PLANNING COMMISSION RECOMMENDATION From: "B -3" To: "B -3 /SP" SUBJECT ROPERTY ORDINANCE: LOCATION MAP Page 1 of 4 AN ORDINANCE AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY TITAN SUPPORT SYSTEMS, INC., BY CHANGING THE ZONING MAP IN REFERENCE TO FLOUR BLUFF PARK, BLOCK 16, LOTS 20 THROUGH 25 AND 45 THROUGH 47, FROM "B -3" BUSINESS DISTRICT TO "B -3 /SP" BUSINESS DISTRICT WITH A SPECIAL PERMIT TO ALLOW LIGHT MANUFACTURING USE FOR CUTTING AND SEWING OF FABRICS AND ELASTICS WITHOUT OUTDOOR STORAGE, SUBJECT TO SIX (6) 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 Titan Support Systems, Inc., 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, September 3, 2008, during a meeting of the Planning Commission, and on Tuesday, October 14, 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 Flour Bluff Park, Block 16, Lots 20 through 25 and 45 through 47, located at 9830 South Padre Island Drive, between McIver Street and Greenbay Drive, from "B -3" Business District to "B-3/SP" Business District with a Special Permit to allow for light manufacturing use for cutting and sewing of fabrics and elastics without outdoor storage on the subject property, subject to six (6) conditions. (Zoning Map 035032) (Exhibit A) SECTION 2. That the Special Permit granted in Section 1 of this ordinance is subject to the following six (6) conditions: 1. Uses: The only uses permitted by the Special Permit other than those uses permitted by right in the "B -3" Business District is a "light manufacturing for cutting and sewing of fabrics and elastics" use without outdoor storage. C: \Documents and SettingsWvetteA \My Documents \Development Services\2008 Ordinances & Resolutions \ORD-zoning0908-01- Titan-B-3 to- B- 3- special permit (2).10.14.08.doc —21 5— Page 2 of 4 2. Hours of Operation: The operation of the "light manufacturing for cutting and sewing of fabrics and elastics" use 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. Landscaping: Compliance with Article 27B. Landscape Requirements in the Zoning Ordinance. 5. Lighting: All security lighting must be directional and shielded, be directed away from adjacent properties, 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. 6. 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 C: \Documents and Settings \YvetteA\My Documents \Develoggi n,( Services\2008 Ordinances & Resolutions\ORD-zoning0908-01- Titan-B-3 to- B- 3- special permit (2).10.14.OB.doc —L 1 b Page 3 of 4 regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 14th day of October, 2008. ATTEST: Armando Chapa City Secretary APPROVED: October 6, 2008 1 - ,.. ,SAP _ Yv;eA•uil 4 As stan ity A • rney For City Attorney CITY OF CORPUS CHRISTI Henry Garrett Mayor, City of Corpus Christi C \Documents and Settings \YvetteAWly Documents \Developmen�Services\2008 Ordinances & Resolutions\ORD-zoning0908-01- Titan-B-3 to- B- 3- special permit (2).10.14.08.doc —2 II 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 Hummell Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon C: \Documents and Settings \YvetteA \My Documents \Develggrpe�pt Services \2008 Ordinances & Resolutions\ORD-zoning0908-01- Titan-B-3 to- B- 3- special permit (2).10.14.08.doc L 18 From: "B -3" To: "B -3/SP CASE # 0908 -01 EXHIBITA STAFF RECOMMENDATION LOCATION MAP 16 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: October 14, 2008 AGENDA ITEM: An Ordinance authorizing the City Manager, or designee, to execute an industrial district agreement with the Port of Corpus Christi Authority, as the landowner, and Las Brisas Energy, LLC, as lessee and improvements owner; reserving and preserving all rights, powers, and duties of the City Council; and providing for severance. ISSUE: Industrial districts are formed by an agreement between a city government and industrial firms lying outside city limits. The industrial district contractually protects the industrial venture from annexation and subsequent city regulations, and allows the city and industry to negotiate a payment to the municipality in lieu of taxes. The districts were first allowed by the state under the 1963 Municipal Annexation Act, giving cities a way to expand their tax base while still providing important business incentives - lower taxes and protection from city regulation. The industrial district lies within the city's extraterritorial jurisdiction, but remains outside city limits. PRIOR COUNCIL ACTION: Approval of a resolution supporting Las Brisas Energy Center's application of an air permit filed with the Texas Commission on Environmental Quality on September 16, 2008 CONCLUSION AND RECOMMENDATION: Recommend approval of an Industrial District Agreement with the Port of Corpus Christi Authority, as the landowner, and Las Brisas Energy, LLC C(� a p�Jrlma C alleVro, D( for Economic Development —223— BACKGROUND INFORMATION Over the years, industrial district agreements in Texas have been limited in use to areas along the Texas Gulf Coast, including Beaumont, Houston, Port Arthur, Orange and Corpus Christi. The length of the agreements was statutorily limited to seven years until 1993, when the state allowed 15 years. But unlike tax abatement agreements which cannot be renewed, industrial district agreements can be renewed as long as it is mutually agreeable between the city and industry. The City of Corpus Christi first became involved in industrial districts in 1981 -1982 when the city council and certain industries, principally along the port, negotiated a master industrial district agreement. At that time there was considerable interest by some local groups in moving forward with annexation of the industrial areas that, while contiguous to the city, had never paid any city taxes. During discussions it was agreed that the industries, while being valuable to the city in providing a major economic impetus, would be protected through industrial district agreements. At that time, the phase -in provision (five percent per year) for new improvements was specifically designed to encourage expansion while the maximum cap (50 percent) on existing improvements was designed to provide a competitive advantage for the local industries. The original 1981 -1982 contracts contained the following major elements, which have remained constant with each renewal: 1. Industry was protected from annexation for seven years. 2. No zoning, building inspection or platting requirement were enforced against the industry (although a plan for water, sewer and drainage was required). 3. Industry would pay in lieu of city ad valorem taxes 100 percent of taxes due for land and five percent of taxes due on improvements the first year increasing by five percent each year with a maximum of 50 percent in ten years. 4. The industry must be a member of the Terminal Refinery Fire Company or make an additional payment to the city for fire protection. 5. The industry pays for city utilities at outside city limit rates (this is almost exclusively water and sewer, with water charges predominantly). Water and sewer services are provided by the city to the industrial districts at standard outside city rates. This has resulted in higher rates than if the companies were in the city. These utility rates are common to other industrial districts in other cities where water and sewer services are provided. In 1984 -1985, the industries approached the city with a request for renewal of their contract to extend the contract for a full seven years. After discussion, contracts were again renewed, making the new termination date of the contract 1992. —224— Four years later in 1988 through 1989, the industries again sought a seven -year renewal of their contract. During that negotiation, city staff held the position that there should be a move toward an increase in both the cap and the phase -in provisions. After discussions, city staff recommended to the council the contracts be extended for seven years (through 1995) with the same terms as previously adopted. From 1992 through 1994, discussions continued regarding renewal of the industrial district contracts, and specifically on the appropriate amount of increase in the cap and the phase -in provisions. Industrial district contracts that became effective January 1, 1995 had the following major provisions: 1. Cap - The current 100 percent cap of land values is maintained, and the cap on improvements is increased from 50 percent to 60 percent. 2. Phase -in - The current five percent per year 10 -year phase -in on new improvements is substantially increased to a sliding scale phase -in as follows: 6% - Year one and two 7% - Year three and four 8% per year following, up to the cap of 60% This provision also allowed substantially more revenues to the city while maintaining a comparative advantage for the industries over other locations for expansion of plant or industry capacity. 3. Term - The term of the contract increased from seven years to ten years. While state law now allows a 15 -year contract, a maximum term of ten years allows the industries substantial stability. By making the new contract effective Jan. 1, 1995, one year has been eliminated from the previous contract term. 4. Buy local - The contracts contained a new provision which required the industries in all of its procurements to use its best efforts to procure services, equipment, etc. from businesses located within the Corpus Christi area unless they are unavailable within the area. 5. Industrial use - The new contract specifically prohibited the use of land for other than the standard industrial, heavy industry, or related service providers (or the holding of land for such uses). If an area within an industrial district was used for some type of retail sales to the general public or other non - industrial use, there would be an immediate roll -back of the payment in lieu to equal 100 percent of the improvements and land as if it were in the city limits at the original date of the contract. In addition, the city was given the right to file an injunction against the use and the right to immediately annex the land. 6. Contamination clean -up and buffer zone - In order to participate in a contract, an industry located in an area of contamination monitored by the Texas Commission on —225— Environmental Quality had to agree to remediate their contamination in accordance with all applicable laws, and the industry had to agree to participate in an equitable program of land acquisition agreed to by owners of industries on a majority of the assessed value of property within the industrial district if such buffer acquisition program was proposed. 7. Form of contract - In the past, there have been two forms that have been used for the industrial district agreements. During this period, the agreements were consolidated into one form. 8. Emission control equipment - The contract stipulated that the calculations of payment in lieu shall be made without reference to the exemption for pollution control property in Sec. 11.31 of the Texas Property Tax Code and Art. VIII, Sec. 1 -1, Texas Constitution. The City Council adopted a uniform contract in 2004 for contracts executed 2005 -2014. The Industrial District contracts that became effective January 1, 2005 had the following changes made to the 10 -year phase -in on new improvements: Yr. of use - % lstyr -6% 2nd yr -12% 3rd yr — 19% 4th yr — 26% 5th yr — 34% 6th yr — 42% 7th yr — 50% 8th yr — 58% 9th yr — 60% 10th yr — 60% The City of Corpus Christi encourages the updating, expansion, and growth of industries within the District. It is the established policy of the City Council to adopt reasonable measures permitted by law that will enhance the economic stability and growth of the City through the development of an Industrial District Agreement. Las Brisas Energy Center, LLC, is one of the largest one -time investments in Corpus Christi's history. The asset value is comparable to our communities three refining partner's investment. Las Brisas is expected to be one of the largest tax payers in the region and will be a strong community partner for decades. —226— Las Brisas proposes building a 1,320 gross megawatt (MW) state -of- the -art electric generating facility on the north side of the Port of Corpus Christi's Inner Harbor. This project will provide much - needed, reliable electric power for users throughout Corpus Christi and South Texas at competitive prices. The state -of- the -art facility will utilize highly sophisticated equipment to generate clean energy and protect the region's environment. Environmental Benefits • Will not discharge wastewater into Corpus Christi Bay; • Will buy raw water (via pipeline) from the City of Corpus Christi; • Will not cause or contribute to a change in the ozone attainment status for the Corpus Christi air shed; • Will be constructed in an existing industrial corridor; • Will provide a beneficial use for petroleum coke, an existing by- product of the current refining industry in the area; and • Will use best available control technology Economic Benefits • Will create 1,300 direct jobs and 2,600 indirect jobs during the construction phase, for an initial economic impact of $2.5 - $3 billion; • More than 90% of these jobs will come from Nueces and San Patricio counties; • Will create 80 -100 direct jobs and 150 -175 indirect jobs once operating, for an economic impact of $20 - $30 billion in annual wages; • Permanent jobs will be long term, with starting annual salaries averaging $75,000 plus excellent health and retirement benefits; • Plant will produce reliable base load power locally, allowing competitive pricing and overall consumer savings; and • Will diversity fuel sources for power production to insulate Texans from volatile natural gas prices which can lead to higher electricity prices —227— AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AN INDUSTRIAL DISTRICT AGREEMENT WITH THE PORT OF CORPUS CHRISTI AUTHORITY, AS THE LANDOWNER, AND LAS BRISAS ENERGY, LLC, AS LESSEE AND IMPROVEMENTS OWNER; RESERVING AND PRESERVING ALL RIGHTS, POWERS, AND DUTIES OF THE CITY COUNCIL; AND PROVIDING FOR SEVERANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the City Manager, or designee, is authorized to execute an industrial district agreement with the Port of Corpus Christi Authority, as Landowner, and Las Brisas Energy, LLC, as Lessee and Improvements Owner. A copy of the Industrial District Agreement is on file with the City Secretary. SECTION 2. That all rights, powers, and duties of the City Council are reserved and preserved. SECTION 3. 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. Las Brisas Industrial District Ordinance 10032008 —228— 2 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 Hummel) 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 October, 2008. ATTEST: Armando Chapa Henry Garrett City Secretary Mayor APPROVED: 3rd day of October, 2008: R. -y ' -ining First Assistant y Attorney For City Attorney LAS BRISAS INDUSTRIAL DISTRICT ORDINANCE 10032” 9_ Page 1 of 13 INDUSTRIAL DISTRICT AGREEMENT NO. 87 THE STATE OF TEXAS § COUNTY OF NUECES § CITY OF CORPUS CHRISTI § This Agreement made and entered into by and between the City of Corpus Christi, Texas, a municipal corporation of Nueces County, Texas, hereinafter called "CITY ", and the Port of Corpus Christi Authority, a political subdivision of the State of Texas, Landowner, and Las Brisas Energy, LLC, a Texas Limited Liability Company, Lessee, and Improvements Owner, hereinafter collectively called "COMPANY ". WITNESSETH: WHEREAS, it is the established policy of the City Council of the City of Corpus Christi, Texas, to adopt reasonable measures permitted by law that will tend to enhance the economic stability and growth of the City and its environs and will attract the location of new and expansion of existing industries therein, and this policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the City and its citizens; and WHEREAS, Company is the owner or lessee of land or owner of improvements on land within the extraterritorial jurisdiction of the City of Corpus Christi, and WHEREAS, upon execution of this agreement by the City this land shall be known as "Corpus Christi Industrial District No. 87," and this land is more particularly described in Exhibit "A" by metes and bounds as provided in Section VII and in Exhibit "B" by a listing of the property by account number designated by the Nueces County Appraisal District ( "NCAD ") or its successor attached hereto, and incorporated herein for all purposes, herein called "said land" and upon which Company has either constructed (and /or contemplates) the construction or expansion of improvements; and WHEREAS, under said policy and the provisions of Section 42.044, Texas Local Government Code, City has enacted Ordinance No. 15898, as amended, including without limitation as amended by Ordinance Nos. 022092, 022360, and 025703, enacted on April 13, 2004, incorporated for all purposes, indicating its willingness to enter into industrial district agreements with industries located within its extraterritorial jurisdiction and designating areas located in its extraterritorial jurisdiction as industrial districts, herein collectively called 'Districts' and Ordinance No. 15949 designating land areas as Corpus Christi Industrial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2 if the industries no later than December 15, 2004, (or later for subsequently acquired land as provided in the ordinance) submit substantially complete executed contracts to the City Manager; and WHEREAS, City desires to encourage the updating, expansion and growth of industries within said Districts and for this purpose desires to enter into this Agreement with Company. C: \Documents and Settings \jayr\My Documents WayR \EconomicQe o , enl \Las Brisas Industrial District Agreement 10032008.doc Page 2 of 13 NOW, THEREFORE, in consideration of the premises, the mutual agreements of the parties herein contained and under the authority granted under Section 42.044, Texas Local Government Code, and the Ordinances of City referred to above, City and Company hereby agree as follows: I. A.1. City covenants and agrees that during the term of this Agreement, and subject to the terms and provisions hereof, said land shall retain its extraterritorial status as an industrial district and shall continue to retain this status until and unless the same is changed under the terms of this Agreement. Except as herein provided City further covenants and agrees that said land shall be immune from annexation. 2. During the term hereof City shall have no obligation to extend to said land any City services, except fire protection if Company makes additional payments to City under Article III.E. hereof, and other City services being provided to and paid for by Company on the date hereof. B. Further, City and Company agree that during the term hereof, City shall not require with respect to said land compliance with its rules or regulations (1) governing zoning and platting of said land or any additions thereto outside the City limits and in an industrial district; provided, however, Company further agrees that it will in no way divide said land or additions thereto without complying with State law and City ordinances governing subdivision of land, including the provisions of Article XI of this Agreement; (2) prescribing any building, electrical, plumbing or inspection code or codes; or (3) prescribing any rules governing the method of operations of Company's business, except as to those regulations relating to the delivery of utility services and industrial waste disposal through City -owned facilities. C. Company covenants and agrees that during the term hereof, Company will not use or permit the use of the land and improvements covered by this Agreement for purposes not included within the term "industry" as defined in Section 2 of Ordinance No. 15898, as amended. Holding said land and improvements for future "industry" use, without using same for non - industry purposes, does not violate this paragraph. II. This Agreement is an extension of the existing Agreement between the City and the Company. The term of this Agreement shall be ten (10) years beginning January 1, 2005, and continuing until December 31, 2014, unless extended for additional period or periods of time upon mutual consent of Company and City as provided by the Municipal Annexation Act; provided, however, if this Agreement is not so extended for an additional period or periods of time on or before March 31 of the final calendar year of the term hereof, then the immunity from annexation granted herein shall terminate on that date, but all other terms of this Agreement shall remain in effect for the remainder of the term; provided, however, the effective date and time of annexation shall be no earlier than midnight of December 31 of the final year of the term. C: \Documents and Settings \jayr \My Documents \JayR \Economic DeusZtpollLas Brisas Industrial District Agreement 10022008.doc Page 3 of 13 Each year during the term hereof, Company shall pay to City: A.1. An amount in lieu of taxes on said land (excluding improvements and personal property located thereon) equal to one hundred percent (100 %) of the amount of ad valorem taxes based upon the market value of said land which would otherwise be payable to City by Company if said land were situated within the city limits of City. 2. With respect to any new land acquired by Company after January 1, 1981, located in the extraterritorial jurisdiction of City, and the use of which relates directly to the primary use of the parent tract, the new land shall be included in Company's land known as said land, and shall be considered in calculating the in lieu of tax payment on said land as of January 1 of the first year following the date which the new land is acquired by Company. In addition, Company shall provide City a revised Exhibit "A" that includes a complete description of the new land in accordance with Section VII and a listing by NCAD account number of the newly acquired land that will be added to Exhibits "A" and „Ba B.1. An amount in lieu of taxes on improvements (excluding personal property) located on said land equal to sixty percent (60 %) of the amount of ad valorem taxes which would otherwise be payable to City by Company if said improvements were situated on land within the city limits of City. "Improvements" shall be as defined in Section 1.04(3) of the Texas Tax Code, and shall also include petroleum and /or chemical refining, processing, extraction or storage facilities, structures, or equipment erected on or affixed to the land, regardless of the land ownership, and pipelines on, under, or across the land which are owned by the Company. 2. On or before July 31 of each year or upon final determination of property values by NCAD, whichever is later, during the term of this Agreement, Company shall provide to City's Collection Section a written statement of its opinion of the market value sworn to by an official of Company authorized to do the same. C. For new improvements or facilities completed after January 1, 1974, in lieu of the percentages of the amount of ad valorem taxes as calculated in III.B., Company shall pay to City the percentage shown in the chart below based on the year of use. Payments under this provision shall never exceed sixty percent (60 %) of the amount of ad valorem taxes that would otherwise be payable to City by Company if said improvements were situated on land within the city limits of City. The first year of use for purposes of this new improvements payment shall be deemed to begin on the first day of January next following the date when the new improvements are placed in use. This provision shall apply to construction of new improvements or facilities and to the expansion of existing improvements or facilities on said land. To qualify as new improvements or facilities, the value of all new improvements or facilities in any single year must exceed a cumulative value of at least $3,000,000.00. New improvements or facilities not included within this Article III.C. shall be deemed to be included within the provisions of Article III.B. C: \Documents and Settings \jayr\My DocumentsJayR \Economic Dez&2enl\Las Brisas Industrial District Agreement 10022008.doc Page 4 of 13 Chart yr of use % yr of use % yr of use % yr of use 1st yr 6% 4th yr 26% 7th yr 50% 10th yr 60% 2nd yr 12% 5th yr r 34% 8th yr 58% 11th yr 60% 3rd yr 19% 6th yr 42% 9th yr 60% 12th or more yr 60% D.1. If in any year, the total in -lieu tax value of land and improvements under III.A. through III.C. is not at least an annual increase of 3% over the previous year, the value of the oldest new improvements that has not been captured under III.C. that is needed to meet the minimum required increase in value shall be added to the total in -lieu value of land and improvements for that year only. Payments under this provision shall never exceed one hundred percent (100 %) of the ad valorem taxes that would otherwise be payable to City by Company for land if said land was within the city limits of City and shall never exceed sixty percent (60 %) of the ad valorem taxes that would otherwise be payable to City by Company for improvements if said improvements were situated on land within the city limits of City. 2. However, if in any year, the total in -lieu tax value of land and improvements is more than 6% higher than the previous year, the increase in in -lieu tax values for that year shall be capped at 6 %. E. An additional amount for City fire protection equal to fifteen percent (15 %) of the amount which would be payable on 100% of assessed value of improvements located in said land notwithstanding the provisions of Article III.B.; provided, however, that if and as long as Company is a member in good standing of the Refinery Terminal Fire Company, or its successor, or Company agrees to provide fire protection and emergency services either from a qualified external provider or by use of a qualified internal emergency response organization, it shall not be obligated to pay the additional amount provided by this Article III.E. Minimum qualifications would include meeting certain standards as defined by applicable OSHA, state regulatory and NFPA Standards that apply to fire control, emergency management, disaster planning and rescue services as recognized by the Texas Industrial Fire Training Board, the State Fireman's and Fire Marshal's Association of Texas or equivalent. Company will provide equipment, training, and facilities necessary to safely handle all expected emergencies and properly protect Company and the community from the adverse effects of an industrial disaster. F.1. At the request of Company, as an alternative to the method of calculation set forth in Article III. A. through .E., the Company may make a payment which is determined by considering, using the method of calculation set forth in Article III. A. through .E., said land and all other lands contiguous to said land, or forming an integral part of Company's primary operation located on said land, owned by Company inside the city limits as if all the value of Company's lands above described and improvements thereon were outside the city limits, and deducting from the amount which would otherwise be due from the calculation the property taxes actually due to City resulting from the assessed values of land and improvements, excluding personal property, located inside C: \Documents and Settings \jayr\My DocumentsWayR \Economic De_ele 3,3t\Las Brisas Industrial District Agreement 10022008.doc Page 5 of 13 the City. If Company selects the alternative procedure, the amount due to City under this Article III.F. shall be the resulting difference. In addition, Company shall provide City, by attaching hereto as Exhibits "A" and "B ", a complete description in accordance with Section VII or a listing of the account numbers as available from NCAD of the lands contiguous to said land, or forming an integral part of Company's primary operation located on said land, owned by Company inside the city limits. 2. With respect to any new land acquired by Company after January 1, 1981, located inside the city limits, which is contiguous to said land, or forms an integral part of Company's primary operation located on said land, the new land may be considered in the alternative method of calculating the in lieu of tax payment as stated above, as of January 1 of the first year following the date that the new land is acquired by Company. Company shall provide City a new or revised Exhibit "B" which includes a complete description of the new land or a listing of the account numbers from NCAD that will be attached to Exhibit "B ". Provided, however, this provision can only be used by a Company that was utilizing this provision on December 31, 1994, only with respect to Land reflected in Exhibit "B" to that Company's Industrial District Agreement with City as of said date, and only for so long as the alternate in this paragraph is continuously used. IV A. Company agrees to pay to City on or before January 31 of the year following each year during the term hereof all payments in lieu of taxes provided for hereunder without discount for early payment. The present ratio of ad valorem tax assessment used by City is one hundred percent (100 %) of the fair market value of property. Any change in the ratio used by City shall be reflected in any subsequent computations hereunder. This Agreement and the method of determining and fixing the amount of in lieu of taxes payments hereunder shall be subject to all provisions of law relating to determination of market value and taxation, including, but not limited to, laws relating to rendition, assessment, equalization and appeal. B. In determining the Company's in lieu of taxes annual payment required under this Agreement, the calculation shall be made utilizing the fair market value of all property determined by NCAD or its successor under provisions of the Texas Property Tax Code. The Company shall timely provide information and reports required under Texas law, rules, and regulations to NCAD or its designee, so that the appraisal process can be completed in accordance with all applicable state laws. Upon written request each year by the City's Collection Section, the Company will provide the City with the certified fair market value assessment for use in calculation and preparation of the annual in -lieu tax payment. The calculation shall be made without reference to the exemption for pollution control property in Section 11.31, Texas Property Tax Code, and Article VIII, Section 1-1, Texas Constitution, as same presently exist or may be hereafter amended, using the fair market value of pollution control equipment certified by NCAD. In addition, all the amounts shall be calculated without reference to any new tax exemption or any increase in an existing tax exemption enacted after January 1, 1995. V C:\Documents and Settings \jayr\My Documents \JayR \Economic.D 4wnt \Las Brisas Industrial District Agreement 10022008.doc Page 6 of 13 If Company elects to protest the valuation set on any of its properties by Nueces County Appraisal District (NCAD) for any year or years during the term hereof, it is agreed that nothing in this Agreement shall preclude the protest and Company shall have the right to take all legal steps desired by it to reduce the same as if the property were located within the City, except with regard to the exemptions in Part IV B. Notwithstanding any protest by Company, Company agrees to pay to City an initial in lieu of tax payment, on or before the date therefor hereinabove provided, of at least the amount of the payment in lieu of taxes on said land and improvements which would be due by Company to City hereunder on the basis of renditions filed by Company with City's Collection Section for that year in accordance with Section III B.2 or on the basis of the assessment thereof for the last preceding year, whichever is higher. When the valuation on said property has been finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final settlement of the controversy, then within thirty (30) days thereafter Company shall make to City any additional payment due based on the final valuation. If as a result of final judgment of a court of competent jurisdiction, or as the result of other final settlement of the controversy, the valuation of Company's property is established as an amount less than the amount used to compute the initial in lieu of tax payment for that year by Company, then within thirty (30) days thereafter City shall make to Company any payment due based on the difference between the initial payment and that which is computed based on the final settlement. VI A. If Company fails or refuses to comply with all or any of the terms, conditions and obligations herein imposed upon the Company, then this Agreement may be terminated at the option of City and /or the City may elect to sue to recover any sum or sums remaining due hereunder or take any other action which in the sole discretion of the City it deems best. If the City elects to sue to recover any sum due under this Agreement, the same penalties, interest, attorney's fees, and cost of collection shall be recoverable by the City as would be in a suit to recover delinquent ad valorem taxes. If the Company is an industry covered by the third paragraph of Section 2 of Ordinance 15898, as amended, failure to comply with the terms of that paragraph shall constitute grounds for termination of this Agreement, provided however, that the Company shall be given written notice of the grounds for termination and if within sixty (60) days the Company complies or demonstrates a satisfactory plan of compliance (where compliance requires more than sixty (60) days) the Agreement shall not be terminated. B. If Company defaults in paying in lieu of tax payments hereunder, City shall be entitled to a tax lien on said land and improvements; and the lien may be enforced by City in the same manner as provided by law for the collection of delinquent ad valorem taxes. C. If City breaches this Agreement by annexing or attempting to pass an ordinance annexing any of said land, Company shall be entitled to enjoin City from the date of its breach for the balance of the term of this Agreement, from enforcing any annexation ordinance adopted in violation of this Agreement and from taking any further action in violation of this Agreement. if Company elects to pursue this remedy, then so long as C: \Documents and Seltings\jayr \My Documents \JayR \Economic De21858At \Las Brisas Industrial District Agreement 10022008.doc Page 7 of 13 City specifically performs its obligations hereunder, under injunctive order or otherwise, Company shall continue to make the annual payments required by this Agreement. D.1. If Company uses, or permits use of, the land and improvements covered by this Agreement for purposes not included within the term "industry" as defined in Section 2 of Ordinance 15898, as amended, the payment in lieu of taxes to be paid by Company under this Agreement shall be increased to an amount equal to one hundred percent (100 %) of the amount of ad valorem taxes on land, improvements, and personal property sited on the land that would otherwise be payable to City by Company if said improvements were situated on land within the city limits of City. 2. The increase shall be immediately effective for all payments from the inception of this Agreement, and Company shall transmit to the City within 10 days of being notified by City of the determination of a non - industrial use, an amount equal to said one hundred percent (100 %) of ad valorem taxes from the inception of this Agreement less any amounts previously paid plus penalties and interest as if the amounts were delinquent taxes. City shall be entitled to its attorney's fees and other costs in collecting any of these amounts. In addition, City shall have the right, in its sole and absolute discretion: (1) to obtain an injunction from a court of competent jurisdiction, upon the court's determination that the use is not an "industry" use, requiring that the use be permanently discontinued, or (2) to annex the land covered by this Agreement. Until the land is annexed, Company shall continue to make payments equal to said one hundred percent (100 %) of ad valorem taxes. VII Company agrees to provide to City at Company's expense, a survey plat and field note description of said land, unless the survey plat and field note description from the existing agreement has not changed. Company also agrees to provide City with a listing of account numbers as available from NCAD or its successor. With respect to Company's acquisition of new land, as described in Article III.A., which becomes included in said land, Company agrees to provide to City at Company's expense, a survey plat and field note description of the new land and a listing of account numbers as available from NCAD or its successor. VIII A. If any attempt to annex any of said land owned, used, occupied, leased, rented or possessed by Company, is made by another municipality, or if the incorporation of any new municipality should attempt to include within its limits said land or property, the City shall seek a temporary and permanent injunction against the annexation or incorporation, with the cooperation of Company, and shall take any other legal action necessary or advisable under the circumstances. The cost of the legal action shall be borne equally by the parties hereto; provided, however, the fees of any special legal counsel shall be paid by the party retaining same. C: \Documents and Settings \jayr \My Documents \ayRlEconomic De28peeat1Las Brisas Industrial District Agreement 10022008.doc Page 8 of 13 B.1. If City and Company are unsuccessful in obtaining a temporary injunction enjoining the attempted annexation or incorporation, Company shall have the option of (1) terminating this Agreement, effective as of the date of the annexation or incorporation, or (2) continuing to make the in lieu of taxes payments required hereunder. This option shall be exercised within thirty (30) days after the application for the temporary injunction is denied. If Company elects to continue the in lieu of taxes payments, the City shall place future payments hereunder together with part of the payment for the calendar year in which the annexation or incorporation is attempted, prorated to the date the temporary injunction or relief is denied, in a separate interest - bearing escrow account which shall be held by City subject to the following: B.2. If final judgment (after all appellate review, if any, has been exhausted) is entered denying a permanent injunction and /or upholding the annexation or incorporation, then all these payments and accrued interest thereon shall be refunded to Company; or B.3. If final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and /or invalidating the annexation or incorporation, then all the payments and accrued interest thereon shall be retained for use by City. IX The benefits accruing to Company under this Agreement shall also extend to Company's "affiliates" and to any properties presently owned or acquired by said affiliates within the area described in Exhibit "A" and/or Exhibit "B" to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also include land and improvements presently owned by its affiliates. The word "affiliates" as used herein shall mean (1) all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50 %) or more of the stock having the right to vote for the election of directors; or (2) all corporations which are members of a "controlled group of corporations" (as that term is defined in Section 1563(a) of the Internal Revenue Code of 1954, as amended) of which the Company is a member. X This Agreement shall inure to the benefit of and be binding upon City and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operations of law, all or any part of said land, and the agreements herein contained shall be held to be covenants running with said land for so long as this Agreement or any extension thereof remains in force. XI A. Whenever the Company sells a contiguous portion of said land to another industry as defined in Ordinance No. 15898, as amended, then platting of the property may be deferred under the following conditions: C: \Documents and Settings \Iayr\My Documents \JayR\Econamic Dere2r3 4g €as Brisas Industrial District Agreement 10022008.doc Page 9 of 13 1. The seller shall submit for approval by the City Council a site plan indicating the proposed water, sewer, drainage, access, and street plans for said land; 2. Both the buyer and the seller shall enter into an agreement with the City requiring the platting of said land if the buyer's use of the property materially changes from the permitted uses described above, or if the Company's industrial district agreement terminates without extension; and 3. The seller shall remain solely responsible for any payments in lieu of taxes attributable to the buyer's holdings on the property unless the buyer has entered into a supplemental industrial district contract with the City concerning the holdings. B. Whenever the Company properly plats, subdivides and conveys to a buyer other than an affiliate a portion of the lands described in Exhibit "A" and /or Exhibit "B ", Company shall furnish to the City's Collection Section a revised Exhibit "A" and /or Exhibit "B" and a listing of account numbers as available from NCAD or its successor, which revised exhibit or exhibits shall constitute an amendment to this Agreement, effective for the calendar year next following the calendar year in which the conveyance occurred. Seller shall remain solely responsible for any payments in lieu of taxes for the calendar year in which the conveyance occurred. Thereafter, the buyer shall be responsible for the payments including any rollback payments under Article VI.D. If the Company improperly plats, subdivides or conveys a portion of the lands described in Exhibit "A" or Exhibit "B ", Company shall remain solely responsible for any payments in lieu of taxes applicable to the property, including improvements thereon, and including any rollback payments under Article VI.D. as if the improper plat, subdivision, or conveyance had not occurred. XII Except for industrial districts in the Gulf of Mexico created under Section 11.0131 of the Texas Natural Resources Code, if City enters into an agreement with any other landowner, within the extraterritorial jurisdiction of the City, engaged in a similar industry, as classified by Major Group according to the Standard Industrial Classification Manual 1987 or enters into a renewal of any existing industrial district agreement with an industry of the same classification which contains in lieu of tax payment terms and provisions more favorable to the landowner than those in this Agreement, Company and its assigns shall have the right to either terminate this Agreement, or amend this Agreement to contain the more favorable in lieu of tax payment terms and provisions. "Similar industry" shall not include any tourist - related business or facilities under Section 42.044, Texas Local Government Code. XIII In all of its procurements, including, but not limited to, procurements of supplies, materials, equipment, service contracts, construction contracts, and professional services contracts, the Company shall use reasonable efforts to procure same from C \Documents and Settings \jayr \My Documents\JayR \Economic CeZ$ Brent \Las Brisas Industrial District Agreement 10022008.doc Page 10 of 13 businesses located within Nueces and San Patricio Counties unless same are not reasonably and competitively available within said area. Company acknowledges that the City provides a regional water system that is critical to the well -being and economic growth of the entire area and that it is important for each customer to continue to use the system as its principal source of water. Company agrees to provide six months written notice of any intent or action to obtain more than ten percent (10 %) of its total water needs from any source other than the City. The Company shall make reasonable efforts to determine local availability and competitiveness of other supplies, materials, equipment, service, construction, and professional service contracts, but shall not be required to maintain records regarding this requirement other than those normally kept in its usual course of business. XIV If any word, phrase, clause, sentence, paragraph, section, article or other part of this Agreement or the application thereof to any person, firm, corporation or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of the word, phrase, clause, sentence, paragraph, section, article or other part of this Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby, unless the holding has the effect of diminishing the revenues payable to City hereunder. XV Upon the commencement of the term of this Agreement, all other previously existing industrial district agreements with respect to said land shall terminate. This Agreement may be executed in multiple counterparts, each of which is deemed an original. C: \Documents and Settings\jayr \My Documents\JayR \Economic DEy2SrLas Bdsas Industrial District Agreement 10022008.doc Page 11 of 13 ENTERED into this day of , 200 ATTEST: CITY OF CORPUS CHRISTI Armando Chapa 'Angel R. Escobar City Secretary Interim City Manager LEGAL FORM APPROVED: October_, 2008 R. Jay Reining First Assistant City Attorney For City Attorney CITY OF CORPUS CHRISTI ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on , 2008, by 'Angel R. Escobar, Interim City Manager of the City of Corpus Christi, a Texas municipal corporation, on behalf of the corporation. Notary Public, State of Texas C: \Documents and Settings \jayrlMy DocumentsWayR \Economic Denp5ent \Las Brisas Industrial District Agreement 10022008.doc PORT OF CORPUS CHRISTI AUTHORITY LANDOWNER By: John P. LaRue Executive Director LANDOWNER ACKNOWLEDGMENT Page 12 of 13 THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on , 2008, by John P. LaRue, Executive Director, Port of Corpus Christi Authority, a political subdivision of the State of Texas, on behalf of the authority. Notary Public, State of Texas C: \Documents and Settings \jayr\My Documents\JayR \Economic Devglppr ynt \Las Brisas Induslnal District Agreement 10022008.doc LAS BRISAS ENERGY, LLC LESSEE AND IMPROVEMENTS OWNER By: John D. Upchurch Chief Executive Officer Page 13 of 13 LESSEE AND IMPROVEMENTS OWNER ( "LESSEE ") ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF § Before me, the notary public whose name is signed and printed (or typed) below, on this day personally appeared John D. Upchurch, known to me /proved to me through his /her driver's license number to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same as Chief Executive Officer of Las Brisas Energy, LLC, a Texas limited liability company, as the act of a for the purposes and consideration therein expressed. Given under my hand and seal of office this day of , A.D., 200_. Notary Public, State of Texas C: \Documents and Settings \jayr \My Documents \JayR \Economic Deyeloernent \Las Brisas Industrial District Agreement 10022008.doc 17 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 10/14/08 AGENDA ITEM: RESOLUTION EXPRESSING THE CITY OF CORPUS CHRISTI'S SUPPORT FOR THE ESTABLISHMENT OF A BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING DEGREE PROGRAM AT TEXAS A &M UNIVERSITY CORPUS CHRISTI. ISSUE: This is a statement of support by the City of Corpus Christi of Texas A&M University Corpus Christi's efforts to establish a Bachelor of Science in Mechanical Engineering degree program. This effort supports the needs of our local industry, supports further development of our university, and provides additional educational opportunities for the youth of this community. REQUIRED COUNCIL ACTION: Approval of the proposed resolution. PREVIOUS COUNCIL ACTION: No previous action has been taken on the issue. CONCLUSION AND RECOMMENDATION: Staff recommends approval of the resolution with an official copy to be sent to the Texas Higher Education Coordinating Board prior to their next meeting on October 23, 2008. Rudy Garza Director of I governor —245— elations BACKGROUND INFORMATION Over the last several years, Texas A&M University Corpus Christi has undergone efforts to establish a mechanical engineering degree plan as an option for its students. While efforts to accomplish this goal failed during the 80th Legislative Session of Texas in 2007, the University continues its pursuit of this program today. To date, the Texas A&M University System has given their approval to establish this program at our university. In addition, on September 17, 2008, the Texas Higher Education Coordinating Board's Subcommittee on Academic Excellence and Research gave approval to allow TAMUCC to offer a bachelor's level degree in mechanical engineering. The issue now moves to the full board of the Texas Higher Education Coordinating Board for consideration and approval. The next meeting is October 23, 2008. The resolution of support proposed herein by the City of Corpus Christi would be forwarded to the Texas Higher Education Coordinating Board for consideration as a show of local support prior to their vote on 10/23 If this proposal is approved by the full board, creation of the program would then be eligible for funding consideration through the legislative appropriations process next session in 2009. —246— RESOLUTION EXPRESSING THE CITY OF CORPUS CHRISTI'S SUPPORT FOR THE ESTABLISHMENT OF A BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING DEGREE PROGRAM AT TEXAS A & M UNIVERSITY — CORPUS CHRISTI WHEREAS, the establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the City by addressing the lack of a trained workforce, thus assisting with new business recruitment to the city; WHEREAS, the large industrial complex in the Corpus Christi area provides significant job opportunities for mechanical engineering graduates; WHEREAS, there are more than thirty large businesses in the Coastal Bend region that employ mechanical engineers; WHEREAS, most of these companies have had difficulty hiring engineers and also retaining them longer than five years; WHEREAS, local leaders have asserted that a substantial problem is the absence of engineering programs in Corpus Christi to support local industries; WHEREAS, the nature of supporting operations has changed dramatically over the years becoming more technically demanding and requiring skilled personnel with a high level of educational expertise; WHEREAS, the establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the City by providing for local hiring of educated, skilled employees by existing industries, thus increasing their capability and capacity; i.e., it will be easier for the local economy to find qualified personnel; WHEREAS, the establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the City by enhancing the retention of employees because they are educated locally, and already have made a commitment to Corpus Christi; WHEREAS, the establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the City by providing qualified candidates for many of the 400 -450 engineering jobs Coastal Bend Workforce Development anticipates by 2014; WHEREAS, the establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the City by providing for additional university faculty and staff positions; and WHEREAS, the establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the City by assisting local businesses through financial and personal contributions of increased numbers of faculty, staff, and students. TAMU -CC BSME Resolution 10022008_1. DOC —247— NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City of Corpus Christi supports the establishment of a Bachelor of Science in Mechanical Engineering degree program at Texas A & M University — Corpus Christi, and urges the Texas Higher Education Coordinating Board to approve a Bachelor of Science in Mechanical Engineering degree program at Texas A & M University -- Corpus Christi. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa Henry Garrett City Secretary Mayor APPROVED: 3rd day of October, 2008. R.Jgyng ttor First Assistant City ttorney For City Attorney TAMU -CC BSME Resolution 10022008 —248— 2 Corpus Christi, Texas of October, 2008 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon TAMU -CC BSME Resolution 10022008_1.DOC —249— 3 18 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: October 14, 2008 AGENDA ITEM: Motion approving the 2008 Tax Levy of $77,239,474.26 based on the adopted tax rate of $0.563846 per $100 valuation, in accordance with Section 26.09 (e) of the Texas Property Tax Code. ISSUE: Section 26.09(e) of the Texas Property Tax Code requires the assessor to submit the unit's tax levy to the governing body for formal approval. REQUIRED COUNCIL ACTION: Approval of motion approving the 2008 tax levy as submitted. PREVIOUS COUNCIL ACTION: • July 22, 2008 — City Council adopted the City budget for FY2008 -2009 based on the proposed tax rate of $0.563846 per $100 valuation. • July 22, 2008 — City Council voted to schedule September 9, 2008 for adoption of the ad valorem tax rate of $0.563846, and scheduled two public hearing on the proposed ad valorem tax revenue increase for August 19, 2008 and August 26, 2008. • August 19, 2008 — City Council conducted a public hearing on the proposed ad valorem tax revenue increase. • August 26, 2008 — City Council conducted a second public hearing on the proposed ad valorem tax revenue increase. • September 9, 2008 — City Council adopted an ordinance setting a tax rate of $0.563846 per $100 valuation. CONCLUSION AND RECOMMENDATION: Staff recommends that the City Council approve the 2008 Tax Levy of $77.239,474.26. Constance P. Sanchez Interim Director of Financial Services Attachments: Background information Certification of Tax Levy for Tax Year 2008 —253— BACKGROUND INFORMATION The Texas Property Tax Code establishes rules for approval of the tax levy. Section 26.09(e) of the Code requires the assessor to submit the unit's tax levy to the governing body for approval. The tax levy is the amount of current taxes to be collected for FY2008 -2009, which is derived by applying the adopted tax rate to the certified appraisal roll. The tax levy for 2008, based upon a tax rate of $0.563846 per $100 valuation and a taxable value of $13,947,493,003, is as follows: Tax Levy Component $50,862,463 Supporting the City's maintenance and operations 27.779,919 Supporting the City's debt service $78,642,382 97,614 Add: Late Rendition Penalty — Personal Property Accounts (1,500,522) Less: Over- 65/Disabled Homestead Frozen Levy Loss $77.239.474 2008 Ad Valorem Tax Levy The 2008 tax levy reflects an increase of $4,448,732 over the 2007 tax levy of $72,790,742 and is primarily due to the growth in valuations relating to new properties. FY2008 -2009 reflects the effect of the fourth year of implementation of the over -65 /disabled homestead tax freeze. The loss of tax levy due to the tax freeze is $1,500,522, which compares to a loss of $1,210,235 reported in FY2007 -2008; a loss of $650,651 reported in FY2006 -2007; and a loss of $396,701 reported in FY2005 -2006. Also applicable to the levy is the addition for late renditions penalty on personal property accounts. The Chief Appraiser may impose a penalty on a person who fails to timely file the required rendition statement or property report on all tangible personal property used for production of income that the person owns or manages and controls as a fiduciary. The tax assessor shall then add the amount of the penalty to the amount of tax imposed on the property and include that amount on the individual's tax bill. In the FY2008 -2009 budget adopted by the City Council on July 22, 2008, the total tax levy allocated to the General Fund and the Debt Service Fund was $77,621,153, or $50,201,976 and 527,419,177, respectively. These amounts were reduced by estimated delinquent collections (3.8 %), the City's portion of the estimated Reinvestment Zone No. 2 levy, and the estimated levy loss from the tax freeze to arrive at the adopted FY 2008 -2009 current ad valorem tax budget of $71,526,682 — $46,263,850 for General Fund and $25,262,832 for Debt Service Fund. Since the ad valorem taxes in the FY2008 -2009 were conservatively budgeted at a 5% increase in appraised values and since the actual appraised values actually represented a 5.36% increase, the differential of approximately $800,000 will be presented as an amendment to the FY2008 -2009 budget to help fund the 2.5% pay increase for non -union General Fund employees effective November 24, 2008. —254— Nueces County Courthouse 901 Leopard, Suite 301 Corpus Christi, 21 78401 -3684 hT \ -F 1 gnziro "Ronnie" CanaTes Assessor and Collector Of Taxes Voice: (.361) 888 -0307 Tat (361) 888 -0218 ronrtie.canales6P co. nueces. tX; us CERTIFICATION OF TAX LEVY FOR THE TAX YEAR 2008 CITY OF CORPUS CHRISTI Total Appraised Value @ 100% of Market Value $ 16,359,753,957 Less: Partial Exemptions ,4g-Use account value loss and abatements $ 2,412,260,954 Total Net Appraised Value $13,947,493,003 Assessment Ratio 100% Total Taxable Value $13,947,493,003 2008 Adopted Tax Rate .563846 /$100 2008 Ad Valorem Tax Levy $ 78,642,381.40 Less: Over- 65/Disabled Homestead Frozen Levy Loss $ 1,500,521.56 Plus: Late Rendition Penalty - Personal Property Accounts $ 97,614.42 2008 Total Ad Valorem Tax Levy $ 77,239,474.26 Submission of the Tax Levy for 2008 for approval by the City of Corpus Christi City Council in accordance with Section 26.09(e) of the Texas Property Tax Code. Ramiro R. Canales, CTA Nueces County Tax Assessor - Collector SWORN AND SUBSCRIBED TO before me at Corpus Christi, Texas this li li day of September, 2008. SUZAN COX Notary Public, State of Texas My Commission Expires 410 October 27, 2011 Notary Publiid, State of Texas THE SPATE OF TEXAS COUNTY OF NUECES The Tax Levy is hereby approved by the City of Corpus Christi City Council on this day of October, 2008. ATTEST: Armando Chapa, City Secretary, City of Corpus Christi -255- Henry Garrett,Mayor, City of Corpus Christi 19 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: October 14, 2008 AGENDA ITEM: Ordinance appropriating $800,000 from estimated ad valorem tax revenues in Fund No. 1020 General Fund for pay range adjustments for pay plans 100, 400, 500(b), 600, 900 and 1000 in the fiscal year 2008 -2009; Changing the FY 2008 -2009 Operating Budget adopted by Ordinance No. 027776 by increasing revenues and appropriations by $800,000 each; and declaring an emergency. ISSUE: After receipt of the Certified Tax Levy it was determined that property taxes would exceed the amount budgeted in the General Fund by approximately $800,000. REQUIRED COUNCIL ACTION: Approval of ordinance appropriating $800,000 in additional property tax revenues to be used for pay range adjustments to be effective November 24, 2008. CONCLUSION AND RECOMMENDATION: City staff recommends approval of the ordinance as submitted. Attachments: Background information Ordinance —259— tit Eddie Houlihan Assistant Budget Director BACKGROUND INFORMATION On August 19, 2008 the City Council passed Ordinance No. 027819 providing for a 2.5% pay range adjustment. At the time the Ordinance passed the expectation was that additional property tax revenue would be available when the certified tax levy was received to cover the General Fund portion of the pay increase. The estimated cost of the pay increase to the General Fund is $779,146.45. —260— ORDINANCE APPROPRIATING $800,000 FROM ESTIMATED AD VALOREM TAX REVENUES IN FUND NO. 1020 GENERAL FUND FOR PAY RANGE ADJUSTMENTS FOR PAY PLANS 100, 400, 500(B), 600, 900 AND 1000 IN THE FISCAL YEAR 2008 -2009; CHANGING THE FY 2008 -2009 OPERATING BUDGET ADOPTED BY ORDINANCE NO. 027776 BY INCREASING REVENUES AND APPROPRIATIONS BY $800,000 EACH; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $800,000 from estimated ad valorem tax revenues is appropriated in Fund No. 1020 General Fund for pay range adjustments for pay plans 100, 400, 500(B), 600, 900, and 1000 in the fiscal year 2008 -2009. SECTION 2. That the FY 08 -09 Operating Budget adopted by Ordinance No. 027776 is changed by increasing revenues and appropriations by $800,000.00 each. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 14th of October, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved as to form: October 6, 2008 By: -'..ti Lisa Aguilar, As4tant City Attorney for the City Attorney �-I H: \LEG- DIR\Lisa\2008 ORDINANCES\Ad valorem tax reveness.Qoc 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 H:U.EG- DIR\Lisa\2008 ORDINANCES\Ad valorem tax rev rss.doc 20 CITY COUNCIL AGENDA MEMORANDUM October 14, 2008 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 an aggregate principal amount not to exceed $12,000,000; establishing parameters regarding the sale of the Certificates of Obligation; approving the execution of a purchase contract; and all other matters related thereto; and providing that this ordinance shall be in force and effect from and after the date of its passage. REQUIRED COUNCIL ACTION: Approval of the ordinance as presented. FUTURE COUNCIL ACTION: There is no future Council action. FUNDING: Funding will come from the bond proceeds. RECOMMENDATION: City Staff recommends that the City Council approve the Ordinance authorizing the issuance of City of Corpus Christi, Texas, Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008, in an aggregate principal amount not to exceed $12,000,000; establishing parameters regarding the sale of the Certificates of Obligation; approving the execution of a purchase contract; and all other matters related thereto; and providing that this ordinance shall be in force and effect from and after the date of its passage. Attachments: Background Information Ordinance Preliminary Official Statement —265— Constance P. Sanchez Interim Director of Financial Services BACKGROUND INFORMATION The City of Corpus Christi plans to issue up to $12,000,000 in Combination Tax and Solid Waste Revenue Certificates of Obligation. On July 22, 2008, the City Council passed a resolution authorizing and directing notice of its intention to issue the Certificates of Obligation. At that time, Morgan Keegan & Company, Inc. was approved as Senior Manager and Frost Bank as Co- Manager. On August 8, 2008 and August 15, 2008, the City published its notice of intention in the Corpus Christi Caller -Times to issue the Certificates of Obligation in accordance with the Texas Local Government Code. 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, 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. Due to recent market conditions and the effects of Hurricane Ike, the sale of these Certificates of Obligation has been delayed four times: September 9, 2008, September 16, 2008, September 23, 2008, and September 30, 2008. Because of the fluctuating conditions in the municipal bond market, our financial advisor has recommended that the City Council delegate to the City Manager the authority to effect the sale of the Certificates of Obligation subject to the following parameters: (1) the price to be paid for the Certificates shall not be Less than 95% of the aggregate original principal amount plus accrued interest from the date of delivery; (2) none of the Certificates shall bear interest at a rate greater than 8% per year, (3) the highest interest rate on any Certificate shall not exceed the lowest interest rate on the Certificates by more than 4 %, and (4) the Certificates must have a rating issued by a nationally recognized municipal securities ratings organization in one of the four highest rating categories. This authority is scheduled to expire if the Purchase Contract has not been executed by the City and the underwriters by Friday, January 30, 2009. The City's bond counsel has confirmed with the Public Finance Division of the Attorney General's office that the City can delegate the sale of the Certificates of Obligation to the City Manager in the manner outlined above. 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. —266— 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 AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $12,000,000; ESTABLISHING PARAMETERS REGARDING THE SALE OF THE CERTIFICATES OF OBLIGATION; APPROVING THE EXECUTION OF APURCHASE CONTRACT; AND ALL OTHER MATTERS RELATED THERETO; AND PROVIDING THAT THIS ORDINANCE SHALL BE IN FORCE AND EFFECT FROM AND AFTER THE DATE OF ITS PASSAGE 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, as a result of market conditions and the effects of Hurricane Ike, the Mayor announced at each of the September 9, 2008, September 16, 2008. September 23, 2008 and September 30, 2008 regular meetings of the City Council, that the authorization of the sale of the Certificates of Obligation hereinafter authorized would be delayed until the next scheduled regular meeting of the City Council; and WHEREAS, because of the fluctuating conditions in the municipal bond market, the City Council has determined to delegate to the City Manager the authority to effect the sale of the -267- Certificates of Obligation hereinafter authorized for the purposes set forth in this Ordinance, subject to the parameters hereinafter described; 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, and Chapter 1371 of the Texas 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 Combination Tax and Solid Waste Revenue Certificates of Obligation, Series 2008 ", are hereby authorized to be issued and delivered in an aggregate principal amount not to exceed $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 -268- 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. SALE OF CERTIFICATES. (a) Negotiated Sale. That the Certificates will be sold through a negotiated sale pursuant to the procedures set forth herein. Morgan Keegan & Co., Inc. is hereby designated to be the senior managing underwriter for the Certificates. The City Manager, acting for and on behalf of the City, is authorized to enter into and carry out the Purchase Contract (as defined in Section 18 hereof) with the Underwriters, in substantially the form attached hereto and made a part hereof for all purposes, with such changes as may be necessary to effect the sale of the Certificates to the Underwriters. The Certificates shall be sold to the Underwriters at such price, and subject to such terms and conditions, as set forth in the Purchase Contract, as shall be determined by the City Manager pursuant to subsection (b) below. The authority of the City Manager to execute the Purchase Contract shall expire if the Purchase Contract has not been executed by the City and by the Underwriters (acting through their duly designated representative) by 5:00 p.m., Friday, January 30, 2009. Any finding or determination made by the City Manager relating to the -269- issuance and sale of the Certificates and the execution of the Purchase Contract in connection therewith shall have the same force and effect as a finding or determination made by the City Council. (b) Delegation to City Manager. As authorized by Chapter 1371, Texas Government Code, the City Manager is hereby appointed, authorized, and designated to act on behalf of the City in selling and delivering the Certificates and carrying out the other procedures specified in this Ordinance, including determining and fixing the date of the Certificates, the designation or title by which the Certificates shall be known, the aggregate principal amount of the Certificates to be sold to fund the contractual obligations described in Section 1 hereof, the date of delivery of the Certificates, the price at which the Certificates will be sold, the years in which the Certificates will mature, the principal amount of Certificates to mature in each of such years, the rate or rates of interest to be borne by each such maturity, the interest payment periods, the dates, price, and terms upon and at which the Certificates shall be subject to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund redemption provisions, and all other matters relating to the issuance, sale, and delivery of the Certificates, including, without limitation, obtaining a municipal bond insurance policy and a debt service reserve fund surety bond in support of the Certificates, all of which shall be specified in the Purchase Contract; provided, that (i) the price to be paid for the Certificates shall not less than 95% of the aggregate original principal amount thereof, plus accrued interest thereon from the date of their delivery, (ii) none of the Certificates shall bear interest at a rate greater than 8% per annum, (iii) the final maturity date of the Certificates shall not extend beyond March 1, 2048, and (iv) the highest interest rate on any Certificate shall not exceed the lowest interest rate on the Certificates by more than 4.0 %. In addition, as a condition to the execution of the Purchase Contract, the Certificates must have a rating issued by a nationally recognized municipal securities ratings organization in one of the four highest rating categories. —270— Section 3. REDEMPTION. (a) Redemption. That to the extent so provided for in the Purchase Contract, the Certificates may be subject to redemption prior to their scheduled maturities. Should the Purchase Contract provide for the redemption of the Certificates prior to their scheduled maturities at the option of the City, if less than all of the Certificates are to be redeemed by the City, the City shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent /Registrar to call by lot Certificates, or portions thereof, within such maturity or maturities and in such principal amounts, for redemption; 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 City and the securities depository. Should the Purchase Contract provide for the mandatory sinking fund redemption of Certificates, the terms and conditions governing any such mandatory sinking fund redemption and the payment of Amortization Installments relating thereto shall be as set forth in the Purchase Contract. (b) 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 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 —271— 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. Section 4. INTEREST. That the Certificates shall bear interest calculated on the basis of a 360 -day year composed of twelve 30 -day months from the dates specified in the FORM OF CERTIFICATE to their respective dates of maturity at the rates set forth in the Purchase Contract. —272— Interest on the Certificates shall be payable on the dates as set forth in the Purchase Contract, until the maturity or prior redemption of the Certificates. 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 Bank 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 thereto 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, 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 maybe transferred in the Registration Books only upon presentation and surrender thereof to the Paying Agent/Registrar at the Designated Trust Office for transfer ofregistration and cancella- tion, together with proper written instruments of assignment, in form and with guarantee of signatures -273- 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 o 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 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 —274— 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 of signatures satisfactory to 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 form prescribed 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 thereof, 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 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 -275- 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 first 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 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 -10- —276— 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 ofthe 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 port ion thereof (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Certificates to be payable only to the registered owners thereof (ii) may be 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. (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 o f 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 ofthe Certificates that it will pay (i) 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 —277— Certificates, when due, and (ii) 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 organized 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 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 _12- -278- 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 counsel's 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 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 -13- -279- Solid Waste Revenue Certificates of Obligation, Series 2006, dated May I, 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 ofthe 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 goveming 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 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 ofthe 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, -14- -280- 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 debt service payments on the Certificates occurring in the current fiscal year of the City. 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 authority of Chapter 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 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 therein. The City anticipates that the Surplus Revenues shall be sufficient to meet the annual -15- -281- 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 in ample time to the principal of and interest on the Certificates. 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. 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 -16- -282- 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 right to the owners of the Defeased Certificates immediately following the making of the payment arrangements; and (3) directs that notice of the 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 -t7- -283- 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 ofAmerica, 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 recognized investment rating firm not less than AAA or its equivalent, and (iii) 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. 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 _18- —284— such Defeased Certificates the same as iftheyhad 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 may be 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 famish 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 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 Cert ificate 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 -19- -285- Certificate) instead of issuing a replacement certificate, provided security or indemnity is furnished 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. 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: -20- -286- (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(b)(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 of more 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 I41(c) of the Code; (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; -21- -287-- (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 temporaryperiod 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 may be necessary, so that the Certificates do not otherwise contravene the requirements of Section 148 ofthe Code (relating to arbitrage) and, to the extent applicable, Section 149(d) of the Code (relating to advance refundings); and (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 ofthe "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 _22- -288- 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 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 -23- -289- 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 of 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 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 of the Certificates. For purposes of the foregoing, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated -24- -290- 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 of the 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. PURCHASE CONTRACT. (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 (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 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. -25- -291- (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. Section 19. OFFICIAL STATEMENT. That the City Manager and the Director of Financial Services are authorized and directed to provide for and oversee the preparation of a final official statement in connection with the issuance ofthe Certificates, and to approve such fmal official statement and deem the preliminary official statement prepared in connection with the sale of the Certificates final in compliance with the Rule and to provide it to the Underwriters of the Certificates in compliance with the Rule. The use of the preliminary official statement prepared in connection with the sale of the Certificates is hereby ratified and approved. 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. "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. -26- -292- (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. (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: _27_ -293- 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 :lwww.disclosureusa.ore, 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 -28- —294— which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that maybe relevant or material to a complete presentation ofthe 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 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 may be 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 -29- -295- or interpretations ofthe Rule since such offering as well as such changed circumstances and (2) either (A) the registered owners ofa 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 o f 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 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 ofthe 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 -30- -296- 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, mayproceed against the City, or any official, officer or employee of the 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. (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. -31- -297- (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. 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 -32- -298- 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 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 of the 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 fromthe 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 -33- -299- 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 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, the Purchase Contract, 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 -34- -300- 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, 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. -35- -301- ADOPTED this 14th day of October, 2008. Mayor, City of Corpus Christi, Texas ATTEST: City Secretary, City of Corpus Christi, Texas (SEAL) APPROVED THIS 14TH DAY OF OCTOBER, 2008: MARY KAY FISCHER, CITY ATTORNEY -36- -302- 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 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 1 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 -303- 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 $5,000), at par and accrued interest to the date fixed for redemption. The years of maturity of the Certificates called for redemption at the option of the Issuer prior to stated maturity shall be -304- selected by the Issuer. The Certificates or portions thereof redeemed within a maturity shall be selected at random and by lot by the Paying Agent/Registrar; provided, that during any period in which ownership of the Certificates is determined only by a book entry at a securities depository for the Certificates, if fewer than all of the Certificates of the same maturity and bearing the same interest rate are to be redeemed, the particular Certificates of such maturity and bearing such interest rate shall be selected in accordance with the arrangements between the Issuer and the securities depository. THE CERTIFICATES are also subject to mandatory redemption in part by lot pursuant to the terms of the Certificate Ordinance, on March 1 in each of the years 20_ through 20_, with respect to Certificates maturing March 1, 20_, in the following years and in the following amounts, at a price equal to the principal amount thereof and accrued and unpaid interest to the date of redemption, without premium: Year Principal Amount ($) *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 -305- 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. -306- 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) -307- 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 -308- 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. -309- *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 -310- Exhibit 13 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. —311— 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 14th day of October, 2008, authorizing the issuance of up to $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 14th day of October, 2008. (SEAL) City Secretary, City of Corpus Christi, Texas -312- E u O G h 0 a its 4 E O m 3 w � c „ Ea at 11 z u r o w � u o ✓ • W E o U tY 0 0 c r u °- 9 n 7 v v U o .E ▪ 8 O U T E e ,c 9 • m s! • y v y E O 0 o P v a ✓ U O w `m .0 _8 • y 0 • y T '0 2 U = —. 0 0 n w° € 0 3 a W W N G f.., .d 0 p c L O N • o ✓ o O H 9 22 d e ✓ O 0 cz. z. in U O G 445. O .- m O - 00 37 0 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 date 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 Christi, 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 Govemment Code, and an ordinance (the "Ordinance ") adopted by the City Council of the City (the "Council "). The Certificates am being issued to provide funds: (1) 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 1 and March I 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 definitive 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 concerning 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 & laworski 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 —313— S12,000,000' CITY OF CORPUS CHRISTI, TEXAS COMBINATION TAX AND SOLID WASTE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2008 STATED MATURITY SCHEDULE (Due March 1) CUSIP No. Prefix 220112 Principal Amount Stated Maturity Rate% Yield % CUSIP No. Suffix(I) 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 (Accrued Interest From September I, 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 -314- 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 IN 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 -315- 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 802507415 - iv - -316-- 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 Hummell, At Large CERTAIN APPOINTED OFFICIALS Name Position George K. Noel7) 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 (n 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 cindvo(Mcctexas.com 80250741.5 Mr. Mark A. Seal M.E. Allison & Co., Inc. 950 East Basse Road, Second Floor or San Antonio, Texas 78209 (210) 930-4000 Fax (210) 930-4001 mseal (ahmeall i son .com -317- 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 Government 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 - -318-- 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. Ratings 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. Future Debt Issues 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. Payment Record 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 -319- 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 Outstandingm 267,950,000 Less: Self Supporting Debt $106,884,957 Applicable Interest and Sinking Fund 10.063.710 116.948.667 NET DEBT 151.001333 Ratio Net Debt to 2008 Net Taxable Assessed Valuation 194% 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% WAdjusted to include the Certificates. Preliminary, subject to change. See Page A -1 for more information. 80250741.5 [The remainder ofthis page intentionally left blank.] -320- $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: (1) 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. 8025074/5 - 1 - —321— 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 1, 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 802507415 - 2 - -322- 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 - -323- 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 - -324- 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 - -325- 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 - -326- 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, governmental 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 8025074 1.5 - 7 - -327- 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 -g- -328- 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 govemed 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 less 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 - -329- 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. 8025074L5 - 10 - -330- 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 -331- 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 fine 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 (i) 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 - -332- 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 fines 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 - -333- 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 (I) This includes full time and summer employees. (2) 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 8025074/5 - 14 - -334- 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 - -335- 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 modern 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 Governmental Accounting Standards Board ( "GASB ") issued Statement No. 34, "Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Govemments" ( "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 fumish 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 - -336- 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(a)(5) 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. 802507475 - 17- -337- 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 802507415 - 18 - -338- 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 altemative 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 - -339- 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 802507415 - 20 - -340-- explanation of the significance of such ratings may be obtained from the company furnishing 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: (I) 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 - -341- 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 concerning 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 - -342- 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 - -343- 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 - -344- 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 - -345- 80250741.5 [This page intentionally left blank] - 26 - -346- 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) $ 16,220,116,351 Less: Exemptions 2,406.781337 Net Taxable Assessed Valuation(I) S 13.813.355 014 General Improvement Bonds Outstandingrtl $ 152,030,000 Combination Tax and Revenue Certificates of Obligations Outstanding(2) 78,410,000 Tax Notes 22,260,000 Stab: Infrastructure Bank Notes 3,250,000 The Certificatest'1 12.000.000' Total Indebtedness Payable from Taxes $ 267,950,000 Less: Self-Supporting Debt?) $ 106,884,957 Applicable Interest & Sinking Funds" 10,063.710 116.948,667 Net Indebtedness Payable from Taxes L151,09.1.311 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 $ 511 of 121 1:1 0) Pursuant to authority permitted by Section 1 -b, Article VIII of the State Constitution, the City has granted an exemption of $50,000 of market valuation to the residence homestead of property owners over 65 years of age and an exemption of $50,000 of market valuation for disabled property owners. Also, the legislature, pursuant to a constitutional amendment and Section 1122 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 $1,500 to $3,000, 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 $5,000 to $12,000 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 governments 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 $5,000. Since tax year 1982, the City has granted a homestead exemption of 10% of market value or $5,000, whichever is greater. The constitutional amendment further 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 42, 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 $16,702,102. After deducting 39.63% or $6,619,032 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. 80250741.5 A -1 -347- 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 I.S.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(' S 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 Overlanoing(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 S 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. 802507415 A -2 -348- 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 200901 $13,813,355,014 295,594 5151,001,333 1.09% $511 $266,628,135 1.93% 5902 $417,629,468 3.02% $1,413 2008 513,107,205,639 295,594 5148,043,286 1.13% 5501 5214,864,031 1.87% 5828 5392,907,317 3.00% $1,329 2007 $11,421,305,918 295,594 $154,533,327 1.35% 5523 5301,068,635 2.64% 51,019 $455,601,962 3.99% $1,541 2006 $10,478,530,288 293,122 $121,723,287 1.16% 5415 5263,160,961 2.51% 5880 5384,884,248 al As of August 1, 2008 and adjusted to include the Certificates. Preliminary, subject to change. 80250741.5 A -3 -349- 3.67% 51,313 2005 59,639,561,772 293,122 5127,808,249 1.33% 5436 $213,945,142 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 supported debt. 00 t. t:1 N m '0 a 01 el N n M en ae a m O N N N N H �q $ N co 00 P 00 pe N • r N Or M - a Ir Di H 8888E O O n O n < r co C. N N m N Al H O O O o o r 6 N N N 00 0 00 0 00 en 8E E8 NNN N N N N N co r r M O M or a N N r ti o e o n M N N N N N ^ r a 0p co 0 oo 0 — WI r - N N P N 0 .M. N e 0, e 00 P oo 8 O r r .: n T R 8 M (0 00 N e e oo00 0 0 • C O Oo- g 0 • `O ■ O er a N N 8 0 N m a a 00 `O M ✓ N V A. t; ser n a 0 a in M M N an h O� Q 00 e O aP rn 0 m 00 Q N O '0 N P O 0 N N r e e N op CO e 0' 00 V • b m 0 0 O 0 00 a M in T I Y 0 vi a a M 010. ('4 0 00 N N n !` M P O. 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O< O r 0' r e P 0Ni N O N 0058 O n in O 0 N O P ONe P P n a r N 00 OM '0 pN OC e O. 0 00 OW 0W W 00 / 00 00 r0 N N 00 d O b N 0 co 0 n a d M M M EEEEE ONO 'M et e a 00 o DM. e M r O N N e P ha 0 . r „ r 0 r O N 00 0 CO a to N 0 M V P OO N 6 vi M - o a Oi 0 W 00 r b b irt 00000 b N r n a P r 1'4 d r0 N 00 M P d 00 N r M et O 0 a r a N v r o r vi a 01 en N N N N 0 N re 0 0 0 0 0 8 0 o 0 0 O P r O ✓ N rn 01 rn P O N N N Pa 0 N 0 0 N —350— CO - ch en no 0 P '0 M O 1' 0 a a n1 a o ° rn 0 tV r r 0 0 0 0 0 0 0 0 0 0 0 ^ d N '0 N b un N o N N N N N 0 N N N n 0 M 0 a Q b Q g O - n' N M P P P N N N N N o n O 01 o O 0 '0 P et en O O P f0 n 0.0 80000 O O O O 0 O Or - N O O N M _ N N N N qq ppn .r b o 1� 1- 00 000 00 p ▪ 0 0 0 n P r .6 0 CO M A A P N O 0 0 0 0 00000 Pa 6 00 en 01 n N N a yr a 1" ▪ O b N M 0 .• N . N N N N N' 1▪ - M 00i V' N N d M rD 00 00 r0 00 '0 N V O 0 d M 0 00 0 0 0 0 00 0 0 0 0 0 0 N or r n e N e d r? 0 0 4, 4, in e O r O 01 N - 00 V etetn0 et e n 0` r ' P 0i a M t(4 80888 n n O O N N N 0 n O n b 00 = ..j • O n O O n no e co 0p v+ a o b a r a 01 ^n ai - ^ M 0 0 0 0 2 O 0 CO O N P N 'G 10 ro '0 n n O 41 in in 10 ^ .- O o 00 - O O P N N N 0 N 0 on 1- N O 00 r M _ N N P N i Interest and Sinking Fund Management A ten year record of the City's policy of requirement on the City's Tax Supported Debt 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 (3) (6) (2) (3) (4) (6) maintaining substantial reserves for the next year's debt service is set out below: 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 l &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 $197,291 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 1, 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 527,769,909 includes $365,529 in bond issuance expenses paid on this refunding issue. On June 1, 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 527,769,909 includes 51,129,938 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 #1 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 80250741.5 Tax Collections & Other Revenue(1) 518,235,174 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 A -5 -351- 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°A 36.0% 36.0% 36.0% Detailed Interest and Sinking Fund Management Index Budget Actual()) Actual Actual Actual 2008 -2009 2007 -2008 2006 -2007 2005 -2006 2004 -2005 Balance on Hand Previous $16,702,102 $11,622,271 $10,255,911 510,328,564 $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 Conv. & 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 Minder 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 Closing Balance $ 9,301,619 cn Unaudited. 80250741.5 29,126,509 30,622,578 27,987,764 27,480,840 $16,702,102 511,622,271 $10,255,911 $10,328.564 A -6 -352- Major Sources of Revenue rN - 0 Apr e 0 M. - Vef 0 b h. r q 00 .b-. .n N vet .m. o fen N vri o N b o -- - b N b N N H r r 0 ti Q N 7-1 p 0'p� r T b N O - V en n N Q. O p r � 9�Dp V O O. g00 .n b r N m 0 O. .p m en p r 0' y -i m y. h e C 00 b 0 0. 9 O' V 0 w' < 000{ 00 4 O vmi 0 v0b kV Om. en r N F 0 gr e e e v. e N a T '0 - f.l -e' .G O if vi r v Vi 00 O e e b m CO .9' {pe�� 0ry0 b N .Vei < N N p V O eo Y N el N o m° b 0 0 b N01 CO N 00 0 .- m vi N a . y' 00 b 00 r O N p0* N v. 1n v1 -V' �nvl000' 4- O y< i.mpO 9- 00 - b(� b ... CO. OP O. m N� N r m 8 ; 00 9 C -e' vi d N N .G h - m 00 0 N P 0 e N 00 N < b V en e e .s O 0 en T e- N r 0N eep .9 O 00 0 fn 0 t'1 Co - 00 Q e 0 N N e r N v .= vi m o ci 4. 00 N N O m 0 0 0 r 0 r 0 fn N P b O m 3 O N rf O a O .O 00 N O e O 0< m e n n v+ N ■D' m N r r' o N -: f' a - d 0 0 00 e O. 00 en - m v. e e .-. C p. O. p N m r N r in e N ern ee 1-4 r O. e 0 00 en . r. b b 0 N S .1". N N .p O b e o m n r rei Vi N- 0 0 0. „ 0 e 0 0 0 - m '0 m m Q. 0 0 e N 0 - N en N 0 o V 0 .0 4 m 0 C< - 01 r- .D N fen 0 r P b `^ c .o - e M b " .c m - - N 0 ch P 00 P 05 CO b 0 0 e e•a r e Oo N e N e co m O O O N f1 e O 0' 0 O q1. b r e 00 e en rn cr. O b O N .e-. ... N 04 07 w $186,398,619 $186,955,963 0" n H cr Q h K S 155,062,716 P 5 E 2 V V v a s 0 t E„ p. t F„ •' .� u = gir O 9l '.�J V 'J !3 iL (7) S m O ..a O 3 O 5 i z r' -353- 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 ** Reclassifofbalance 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) 2008(3) Fiscal Year Ending July 31 2007 2006 $115,135,286 $ 111,500,632 631,439 3,399,993 276,088 497,520 47,384,793 44,505,375 6,915,124 6,907,942 1,425,051 1,500,447 899,537 1,064,729 $ 172,667,318 S 169,376,638 14,786,052 102,590,234 13,272,703 17,420,365 4,366,588 20,322,138 m 3,011,583 236,516 5176,006,179 514,298,422 98,665,201 13,183,111 15,168,861 4,154,426 17,885,895 (o 3,073,876 198,600 $166,628,392 $ 107,938,813 3,493,616 2,462,754 40,709,838 6,118,520 1,004,660 837,913 S 162,566,114 (3,338,861) 2,279,932 5,226,267 (7,576,078) (69,879) (3,408,740) 32,426,604 $ 29,017,864 (2) 514,457,192 95,426,920 12,917,944 13,556,875 4,237,565 17,727,971 m 2,701,135 199,392 $161,244,994 2,748,246 1,341, 120 3,447,512 2,917,492 4,623,722 5,087,192 (5,405,534) (3,239,242) 2,665,880 4,765,442 5,414,126 6,106,562 27,012,478 $ 32,426,604 464,802 20,441,114 $ 27,012,478 2005 $ 104,338,441 3,321,875 320,715 33,612,804 5,658,571 556,088 1,566,094 S 149,374,588 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 2004 $ 99,022,494 2,396,870 573,810 31,324,167 5,189,598 248,091 882,187 $ 139,637,217 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 4,428,314 1,095,753 2,032,704 5,726,103 (7,467,950) 290,857 4,719,171 15,721,943 $ 20,441,114 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 -354- 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 retum 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 -355- The total assessed value of land and improvements comprising all the existing industrial districts approximated $2,051,073,400 as of January I, 2007. The City received industrial district payments as follows: D> Fiscal Year Amount 1997 -98 5,223,486 1998 -99 5,174,725 1999 -00 5,120,527 2000 -01 5,249,555 2001 -02 5,631,939 2002 -03 5,797,095 2003 -04 5,917,118 2004 -05 5,754,083 2005 -06 5,865,286 2006 -07 5,892,233 °l 2007 -08 5,676,868 °l The City Council adopted a financial policy to adopt the effective tax rate which lowered the actual property tax rate. Since the assessed values for the industrial district properties die not materially increase, the amount of cash decreased. Sales and Use Tax The City imposes a I% sales and use tax which is now one of the major sources of income for the General Fund. Revenues from Sales Tax for the past ten fiscal years have been as follows: % of ad Equivalent of Sales Tax Per Total Valorem Ad Valorem Capita Last Fiscal Year Collected Tax Levy Tax Rate Census 1997 -1998 28,732,516 66.10% 0.41 111.60 1998 -1999 29,641,048 65.80% 0.41. 115.13 1999 -2000 30,590,459 65.72% 0.41 110.25 2000 -2001 32,051,919 67.16% 0.42 115.52 2001 -2002 32,674,742 63.17% 0.41 117.77 2002 -2003 32,351,154 59.60% 0.38 116.60 2003 -2004 34,120,633 59.20% 0.38 . 122.98 2004 -2005 36,367,571 63.09% 0.41 128.95 2005 -2006 39,442,670 60.46% 0.38 131.65 2006 -2007 42,082,398 61.68% 0.37 142.37 2007 -2008 44,253,526 60.80% 0.34 148.78 *Collections through August I, 2008 80250741.5 [The remainder of this page intentionally left blank. ] A -10 -356- GENERAL EXPENSES" Comparison of General Expenditures by Functions vN'000 m MO PNNENO N,QOffliCSK WC N.M... ��� Nn. v N Minn pNe• r24 y N= " ^ M"N"Nm N Na .O^OPMOO NP �'a$rfa yy g00oa d Foa vla �Om. mgim N �P o '0 8 h -i 8wPmn-, g: a0 00 0 w m 2 NN tnl m W NNQC Pn m �D &m IN~NWM0 r WnOWO a $ QQ S� `r7P2nMQ •6mr Ti v.m N ngnigqryq NO. tow PNVDO 00 N(• OpII 'vN C m N. . . o m • fl v ° r�Wi�a_QN N Na Q C n P P .e N n p PING aNPm b. m0mi Omo �n Pn WWO.bO' 000 S ON aImc.nornrr:n. m s 0100 m P O v N N 8 N 00 N N ry v V 00 b N Ns- b N N O b w P P N 0 Ch E y6a. u e ', o V 'a 'o L ° o D . o u �2 E m 0 OW Vd ct2E' 2mt ei g 2 2 3 E i-i r m u u 3 V av'�iw°xrciU'>W2 {22 C 4 2 C 0 E N. 2 E to UP 'C L o U •C co O 2 U 4 W X 2 a V h M 0 P e O A o l C ¢d w S E 'E me E 0 e75 2 u t § .E @ E1 a a v c . E m u] C .` E C = u F 8 v, o' 3 6 N UwGG tog N COp ; 0 V =. U U ,, w y uC s V V S E -*74 E 8 2 . 'a QU o2 U O 6 y G � w m � w O O s az U 2 w= W K w y N U �' O N V .E o p q 0 Z=-o= 05 r W N 3 y d L� • •p 0...O O%• C Y % N y Y V C C,1 m o 9 ° 2 0 O N_ =v0=1,4 P e u_ d.E C « O G E °W'Erco m c N o E .E. v._.3 E o t uOa 2 g `m F 5a..(.)2a, o G 6 6 E —357— ti d N 0 Om 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 s A -12 -358- 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 left blank.] A -13 -359- Assessed Valuations The following table sets forth a 0 8 °60 5�) O. 0) d 2 eeeeeeeeee N O O M v'i O t` k0 00 vt M M h It 'G 00 N 00 v1 eF N ON a\ co in t 0o M .. 00 N co 00 C .�, I. vt eF CO N 7 V C l w r N —1 N O t" N M b 00 N t` vt N M V' 00 ., h N set M. N eh M t w V ., N 00 00 O N eF M_ t- O N 0 d' 00 �D 0� m 7 vNi N 00 ON ON ON 0 — N M vi NO of M vt N 00 N 00 00 0\ eF co O ul N O\ N 00 M CM V O t• M t� N S O In t` vi PD NO —� D: h vt vt 00 in N vl ON VD N O O M v) O M VD 00 v) V'. [M N M N N O\'O N O\ co" .-i N M, N N 91- M t` N O et SO O v a NO 7 of 9.4 CO 69 t` 00 00 000 0 •••4 m M on eh M O NO h N h N ta. 00 NO M ON et M N O. O 7 �D 0O V'1 O...+ ., tin L\ v1 00 et M N CO v) ON M NO 00 co O N M 00 O' et M NO -O N O M l� O t l� eF M eh ON ON M eF et 00 CN ON O O O^ N N ea 7 VD 7 C\ N M t-- ON 0 VO t-- M N O et 0 0 h O� vl t-- M 7 00 O ON •, eh et 00 N O er eF 00 .r 00 00 CO 7 b N O NO O NO t■ W l� �O N 00 O 00 N C' - MM o nO ., N O O N t- oO Vl O9 D` O O O ., .-. ON eF in ON N eF N \O 00 V') 7 0 0 0 0 01 et N N N 00 N O 0O M Ca 'O eh t` h et ON inn in M N M t-- %.0 M M M NO in 10 ON N eY N T O N o0 O. t-- in N in N t4 C 00 ON t-- en N N 1. N 10 0 M oO O et ON v) N 00 00 00 0 O .. N et eF 00 01 ND in vl in ON 00 7 C- ND ■.O t� N v1 b t- et of O NO N PO O rt 7 00 NO CO. CO 0 0 0et 0 M et NO et O N 00 N in O 1O N. 7 et D\ o0 D\ N ^ W 'O u- vi eF O et N N N 10 01 M ON NO vl t 0 et 0 eY N N 'O C1 NO 'O N N h oO O co" .N, bR . O O e O O D > > 0 0 0 0 0 0 0 0 0 0 X O .+ N M et vt ND N 00 W y 00) 0 0 0 0 0 0 00 0 0 N N N N N N N N N -360- b o W a -.o 0. 0 0, ...t s5,�a W C 0 O W C 0 W ate) G f ° 8.2aa K W O 7 0 g a 00 —.5.5 yaa cig 0 o 00o a'tog0 1 0 a w a W 'a oN 0 M �. t0 U t 0 yG G b0ts De a.B a .8 Do 0 as "Di § N W 'O m .O .5 5gorn° > W O Ng 0 mph C +� > U 0. w a 0' 8 2° _0 0 I.. W U 1 D0 0 cif > s > 5 8 fl Mi N_ En 0 b N N W t0 O O 0 W O C ics fA °°� W Z > ❑ C y 3 ? 0 8 m 0 . 00 w t y C8 W cD r 0 X o w 0 d Aa "0 ° O 8 2 26 .5 > 00 -9 ..v. °0 U ex N 3 °O 0. • o ° 69 0 O 0) d D N U 2 ez 8a a ° E 0 00 ° .5 c a ma ° 0) O Q 2„, a ° N W F. W zit .5 00 ° 0 .0 V U oNO O � W g U W U ° h N O rfl 6 W 0 ,2 .O 0a C U d 0 s CO 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 $9,231 2000 (3) 2,092 19,290,426 9,221 2001 (3) 2,143 19,814,977 9,246 2002 (3) 2,241 20,755,630 9,262 2003 (3) 2,404 22,271,738 9,264 2004 O1 2,562 23,814,922 9,295 2005 (3) 2,675 24,676,048 9,225 2006 °' 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 -361- Exemption -Local Option Tax Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Assessed Value Exemption()) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Number of Assessed Value Average Exemptions of Exemptions Value 52,513 $366,149,406 $6,973 54,333 392,740,809 7,228 55,189 414,770,371 7,515 56,051 434,924,406 7,759 56,560 467,542,416 8,266 57,473 503,873,807 8,767 57,748 540,248,333 9,355 58,332 584,117,044 10,014 58,802 669,143,866 11,380 59,672 704,460,740 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 $5,000 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 permitted by the Constitution of Texas is $2.50 per $100 of assessed valuation. On April 3, 1993, the citizens of Corpus Christi voted to amend the City Charter which contained a tax limitation of $0.68 per $100 of assessed valuation for all purposes including debt service. The amended Charter provides for the tax rate to increase up to the State limit for voter approved debt authorized after April 4, 1993. The ad valorem tax rate is levied each year by the City Council through the adoption of a tax rate ordinance. Effective January 1, 2000, all taxing units must adopt their tax rates before the later of September 30 or the 60th day after the taxing unit receives the appraisal roll. The following table indicates the tax rate distribution for the past nine tax years and current tax year. 80250741.5 A -16 -362- 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 internet 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 -363- 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 -364- 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 lI sets forth a comparison of the tax levies and also indicates the amount of uncollected delinquent taxes. Table 1 Tax Net Taxable Tax Year Year Assessed Valuation Rate %Current % of Total Ending 1999 S7,462,585,204 $0.623726 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 11 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 $46,546,084 $44,836,825 $1,256,701 $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 -I9 -365- Principal Ad 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 3 4 5 6 7 8 9 Markwest Javelina Pipeline Co Padre Staples Mall, LP H. E. Butt Grocery Company SABCO Operating Company AT &T Bay Area Health Care Wal -Mart Auto Center Zohouri Developments Mustang Island LLC 0 TRT Development Company 1 Flint Hills Resources, LP 2 HD Development Properties LP Sterling Energy Inc. Camden Property Trust Orion Drilling LP Fatty Enterprises NV, LTD One Shoreline Properties LTD Weingarten Realty Investors Case Walnut Ridge Apartments LP Coastal Drilling Co. 20 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 $ 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 -366- 6.06% valuations in 2007 Assessed Value $ 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 2003 -04 $ 10,174,714 1,156,987 1,653,689 8,185,917 21,545 210,527 3,529 1,041 28,079 $ 21,436,028 1,194,920 6,149,445 4,985,777 1,973,950 1,033,260 26,851 2004 -05 $ 11,268,019 1,217,445 1,705,416 8,499,872 8,654 22,358 206,218 1,512 79,075 58,283 $ 23,066,852 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 $ 15,364,203 $ 16,066,415 $ 15,797,470 $ 6,071,825 $ 7,000,437 $ 8,390,059 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 $ 18,704,372 $ 23,304,173 $ 7,937,148 $ 6,423,091 (1) 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 -367- 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 B I and B2. In area B I, Zone No 1 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 -368- 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 -369- 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 (1) Gross Appraised Value Current Taxable Value $360,853,525 $343,088,485 360,853,525 342,830,485 360,853,525 343,088,485 360,853,525 345,798,617 360,853,525 347,016,857 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 $262,544,228 262,425,763 262,544,228 264,035,347 264,986,011 TIF Levy $ 922,535 11,270 380,117 1,488,753 384,901 S 3,187,576 111 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. 80250741.5 [The remainder of this page intentionally left blank.] A -24 -370- 80250741.5 APPENDIX B CERTAIN INFORMATION RELATING TO THE CITY OF CORPUS CHRISTI B -1 -371- [This page intentionally left blank] 80250741.5 B -2 -372- 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 Horne 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 13-3 -373- 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 I, 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 -374- Management Workplace Diversity Committee. Ms. Rose received her BBA (Accounting) degree in 1984 and her MPA in 1991, both from Eastem 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 govemmental 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 Govemment 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. 802507415 B -5 -375- 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: 802507415 B -6 -376-- 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 ll% 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 I 2-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 -377- 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 $30 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. 80250741.5 B -8 -378- Channel Improvement Proiect 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 -379- 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 -380- Construction The Table below indicates the amount of new construction activity in Corpus Christi and the number of permits issued for all purposes. Year 1998 -1999 1999 -2000 2000 -2001 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 Building Permits Number of Permits 5,984 5,845 4,761 5,207 4,565 4,012 5,781 5,989 5,693 5,118 Value 142,154,244 152,987,779 149,264,763 154,763,863 333,016,517u) 295,084,882 387,122,147 450,750,242 503,027,247 343,865,608 01 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: Civilian Labor Force Unemployment Percent Unemployment Total Employment January 2008* December 2007 197,303 9,374 4.8% 187,929 197,300 8,667 4.4% 186,633 January 2007 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 Government 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 -Il -381- 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 802507415 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 -382- 80250741.5 [This page intentionally left blank.] C -2 -383- 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 -384- 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 -385- Respectfully, 80250741.5 M. E. ALLISON & CO., INC. 950 East Basse Road, Second Floor San Antonio, Texas 78209 Financial Advisor -386- 21 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: October 14, 2008 AGENDA ITEM: Ordinance appropriating $2,054,268.50 of unappropriated interest earnings from the following funds: $605,285.39 from No. 4525 Stormwater Commercial Paper Program CIP Fund, $971,369.42 from No. 4475 Water Commercial Paper Program CIP Fund, and $477,613.69 From No. 4500 Waste Water Commercial Paper Program CIP Fund; transferring and appropriating $605,285.39 into the No. 3480 Storm Water CIP Fund; transferring and appropriating $971,369.42 into the No. 4080 Water CIP Fund; and transferring and appropriating $477,613.69 into the No. 3430 Waste Water CIP Fund; for projects relating to improvements to the City's Utility System as allowed by Utility System Revenue bond covenants; changing the FY 2007 -2008 Capital Budget adopted by Ordinance No. 027546 by increasing appropriations by $2,054,268.50; and declaring an emergency. ISSUE: When Commercial Paper Notes are issued, monies are deposited in the City's Commercial Paper Program CIP fund accounts, and earn interest until which time the funds are expended. Interest earnings have accumulated and must be appropriated in order to be used to fund approved Utilities System projects. REQUIRED COUNCIL ACTION: Approval of Ordinance is required. CONCLUSION AND RECOMMENDATION: City Staff recommends approval of the Ordinance as presented. Attachment: Ordinance —389— Constance P. Sanchez Interim Director of Financial Services Page 1 of 3 AN ORDINANCE APPROPRIATING $2,054,268.50 OF UNAPPROPRIATED INTEREST EARNINGS FROM THE FOLLOWING FUNDS: $605,285.39 FROM NO. 4525 STORMWATER COMMERCIAL PAPER PROGRAM CIP FUND, $971,369.42 FROM NO. 4475 WATER COMMERCIAL PAPER PROGRAM CIP FUND, AND $477,613.69 FROM NO. 4500 WASTE WATER COMMERCIAL PAPER PROGRAM CIP FUND; TRANSFERRING AND APPROPRIATING $605,285.39 INTO THE NO. 3480 STORM WATER CIP FUND; TRANSFERRING AND APPROPRIATING $971,369.42 INTO THE NO. 4080 WATER CIP FUND; AND TRANSFERRING AND APPROPRIATING $477,613.69 INTO THE NO. 3430 WASTE WATER CIP FUND; FOR PROJECTS RELATING TO IMPROVEMENTS TO THE CITY'S UTILITY SYSTEM AS ALLOWED BY THE UTILITY SYSTEM REVENUE BOND COVENANTS; CHANGING THE FY 2007 -2008 CAPITAL BUDGET ADOPTED BY ORDINANCE NO. 027546 BY INCREASING APPROPRIATIONS BY $2,054,268.50; AND DECLARING AN EMERGENCY. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF CORPUS CHRISTI, TEXAS: SECTION 1. That $2,054,268.50 of unappropriated interest eamings is appropriated from the following Commercial Paper Program Utilities CIP Funds, : $605,285.39 from No. 4525 Stormwater Commercial Paper Program CIP Fund, $971,369.42 from No. 4475 Water Commercial Paper Program CIP Fund, and $477,613.69 from No. 4500 Waste Water Commercial Paper Program CIP Fund; transferring and appropriating $605,285.39 into the no. 3480 storm Water CIP Fund, $971,369.42 into the No. 4080 Water CIP Fund and $477,613.69 into the No. 3430 Waste Water CIP Fund for projects relating to improvements to the City's Utility System as allowed by the Utility System Revenue bond covenants. SECTION 2. That the FY 07 -08 Capital Budget adopted by Ordinance No. 027546 by increasing appropriations by $2,054,268.50. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and shall take effect upon first reading as an emergency this the 14th of October, 2008. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary —390— Henry Garrett Mayor APPROVED as to form: October 6, 2008 By: Lisa Aguilar Assistant City Attorney For City Attorney -391- Page 2 of 3 Page 3 of 3 Corpus Christi, Texas Day of , 2008 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I /we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel) Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael McCutchon —392— City of 1119 Corpus =1-rar Christi -394-