HomeMy WebLinkAboutAgenda Packet City Council - 07/26/2011-4
11:45 A.M. - Proclamation declaring July 26, 2011 as "ADA Awareness Day"
Proclamation declaring July 30, 2011 as "Feria de las Flores Day"
Proclamation declaring the month of August 2011 as a "No Tie Zone in Corpus Christi, Texas"
Swearing-in Ceremony of newly appointed Board, Commission and Committee Members
AGENDA
CITY OF CORPUS CHRISTI
REGULAR COUNCIL MEETING
CITY HALL - COUNCIL CHAMBERS
1201 LEOPARD ST.
CORPUS CHRISTI, TEXAS 78401
JULY 26, 2011
12:00 P.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 4:00 p.m., or the
end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state
your name and address. Your presentation will be limited to three minutes. If you have a petition or other information
pertaining to your subject, please present it to the City Secretary.
Si Listed desea dirigirse al Concilio y cree que su ingles es limitado, habra un interprete ingles-espanol en todas las
juntas del Concilio para ayudarle.
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to
contact the City Secretary's office (at 361-826-3105) at least 48 hours in advance so that appropriate arrangements
can be made.
A. Mayor Joe Adame to call the meeting to order.
B. Invocation to be given by Pastor John Valles, Wesley 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 Joe Adame
Mayor Pro Tem Larry Elizondo, Sr.
Council Members:
Chris N. Adler
Kevin Kieschnick
Priscilla Leal
David Loeb
John Marez
Nelda Martinez
Mark Scott
City Manager Ronald L. Olson
City Attorney Carlos Valdez
City Secretary Armando Chapa
Agenda
Regular Council Meeting
July 26, 2011
Page 2
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
E. MINUTES:
1. Approval of Regular Meeting of July 19, 2011. (Attachment # 1)
F. BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2)
2. * Commission on Children and Youth
* Leadership Committee for Senior Services
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. 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 the purchase of one (1) boom mower tractor
from H & V Equipment Services, Inc., of Corpus Christi, Texas,
for the total amount of $134,903.82. The award is based on the
Cooperative Purchasing Agreement with the Texas Local
Government Cooperative. This unit is a replacement to the fleet
Agenda
Regular Council Meeting
July 26, 2011
Page 3
4.
5.
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
and will be used by the Storm Water Department. Funds are
available in the Storm Water Operations Budget in FY2010-
2011. (Attachment # 3)
a. Motion authorizing the City Manager, or designee, to
execute a geotechnical services agreement with Kleinfelder,
Inc. of Corpus Christi, Texas in an estimated amount not to
exceed $93,000 for the J. C. Elliott Landfill Groundwater
Monitoring and Sampling Agreement — 2011-2012.
(Attachment # 4)
b. Motion authorizing the City Manager, or designee, to
execute a geotechnical services agreement with Kleinfelder,
Inc. of Corpus Christi, Texas in an estimated amount not to
exceed $116,000 for the Cefe Valenzuela Landfill
Groundwater Monitoring and Sampling Agreement — 2011-
2012. (Attachment # 4)
a. Ordinance appropriating $45,916.95 in Airport CIP interest
earnings as listed in Attachment 1, Section 1, for the City's
match for future FAA Grant Projects and for land acquisition
for future airport projects; changing the FY 2010-2011
Capital Improvement Budget adopted by Ordinance No.
028995 to increase expenditures by $45,916.95.
(Attachment # 5)
b. Ordinance appropriating $490,548.91 in Bond Proceeds
interest earnings and bonding company settlement proceeds
for Bayfront, Public Health and Safety, Library, Museum,
Parks, and Streets in the funds as listed in Attachment 1,
Section 2 for the stated bond projects not yet complete,
similar projects to be approved by City Council, and for the
payment of debt service; changing the FY 2010-2011 Capital
Improvement Budget adopted by Ordinance No. 028995 to
increase expenditures by $490,548.91. (Attachment # 5)
c. Ordinance appropriating $932,533.69 in Utility Revenue
Bond interest earnings and refunded proceeds from the
Texas Department of Transportation as listed in Attachment
1, Section 3 for the support of the City's approved Capital
Improvement Program; changing the FY 2010-2011 Capital
Agenda
Regular Council Meeting
July 26, 2011
Page 4
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
Improvement Budget adopted by Ordinance No. 028995 to
increase expenditures by $932,533.69. (Attachment # 5)
d. Ordinance appropriating $358,324.41 in Specialty Bond
Proceeds interest earnings, and from contributions and
donations from Texas Military Loan Proceeds, Packery
Channel Tax Increment Financing Bonds, Sales Tax Bonds
for the Seawall and Arena, and Generic Capital
improvement Funds as listed in Attachment 1, Section 4 for
the stated bond projects not yet complete, the support of the
City's approved Capital Improvement Program, specific
military -supported projects, and other related projects as
determined by the Type A Board; changing the FY 2010-
2011 Capital Improvement Budget adopted by Ordinance
No. 028995 to increase expenditures by $358,324.41.
(Attachment # 5)
e. Ordinance appropriating $4,839.19 in Older Bond Fund
(issued prior to 2006) interest earnings as listed in
Attachment 1, Section 5 to expedite the closure of said funds
subject to arbitrage; changing the FY 2010-2011 Capital
Improvement Budget adopted by Ordinance No. 028995 to
increase expenditures by $4,839.19. (Attachment # 5)
f. Ordinance appropriating $417,065.91 in Street Assessments
and Street Closures as listed in Attachment 1, Section 6 for
the repayment of approved assessment projects; changing
the FY 2010-2011 Capital Improvement Budget adopted by
Ordinance No. 028995 to increase expenditures by
$417,065.91. (Attachment # 5)
g. Ordinance appropriating $127,977.46 in interest earnings in
the No. 4730 Infrastructure Fund as listed in Attachment 1,
Section 7 from Developer securities held as the Developers'
share of deferred improvements until construction is
complete, as required by the Unified Development Code.
(Attachment # 5)
6. Resolution approving a Small Business Incentives Agreement
between the Corpus Christi Business and Job Development
Corporation and Del Mar College, which provides a grant of up
to $173,223 for an Intern Program to support Small Businesses
and authorizing the City Manager or designee to execute a
Project Support Agreement with the Corpus Christi Business
Agenda
Regular Council Meeting
July 26, 2011
Page 5
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
and Job Development Corporation regarding implementation
and administration of the Del Mar College Small Business
Incentive Agreement. (Attachment # 6)
7. Resolution approving a Small Business Incentives Agreement
between the Corpus Christi Business and Job Development
Corporation and Texas A&M University -- Corpus Christi, which
provides a grant of up to $190,635 for an intern Program to
support Small Businesses and authorizing the City Manager or
designee to execute a Project Support Agreement with the
Corpus Christi Business and Job Development Corporation
regarding implementation and administration of the Texas A&M
University — Corpus Christi Small Business Incentive
Agreement. (Attachment # 7)
8. Resolution approving a Small Business Incentives Agreement
between the Corpus Christi Business and Job Development
Corporation and Accion Texas, Inc., which provides grants of up
to $400,000 for the Interest Buydown and Grant Programs for
Small Businesses and authorizing the City Manager or designee
to execute a Small Business Incentive Project Support
Agreement with the Corpus Christi Business and Job
Development Corporation regarding implementation and
administration of the Accion Texas Small Business Incentive
Agreement. (Attachment # 8)
9. Resolution approving a Small Business Incentives Agreement
between the Corpus Christi Business and Job Development
Corporation and Service Corps of Retired Executives (SCORE)
Chapter 221, which grants $50,000 in small business incentives
for the operation of a program to assist small and start-up
businesses in Corpus Christi and authorizing the City Manager
or designee to execute a Small Business Incentive Project
Support Agreement with the Corpus Christi Business and Job
Development Corporation regarding implementation and
administration of the SCORE Chapter 221 Small Business
Incentive Agreement. (Attachment # 9)
10. Motion canceling Council Meeting of August 9, 2011.
(Attachment # 10)
Agenda
Regular Council Meeting
July 26, 2011
Page 6
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
EXECUTIVE SESSION: (NONE)
PUBLIC NOTICE is given that the City Council may elect to go into
executive session at any time during the meeting in order to discuss
any matters listed on the agenda, when authorized by the provisions
of the Open Meeting Act, Chapter 551 of the Texas Government
Code, and that the City Council specifically expects to go into
executive session on the following matters. In the event the Council
elects to go into executive session regarding an agenda item, the
section or sections of the Open Meetings Act authorizing the
executive session will be publicly announced by the presiding office.
J. PUBLIC HEARINGS: (NONE)
K. SPECIAL BUDGET CONSIDERATION ITEMS:
PROPOSED CITY OF CORPUS CHRISTI BUDGET FY2011-
2012:
11.
a. Second Reading Ordinance - Adopting the City of Corpus
Christi Budget for the ensuing Fiscal Year beginning August
1, 2011; to be filed with the County Clerk; appropriating
monies as provided in the budget. (First Reading 07/19/11)
(Attachment # 11)
b. Second Reading Ordinance — To ratify increase of
$1,058,875 in property tax revenues from last year's
operating budget as reflected in the 2011-2012 Operating
Budget. (First Reading 07/19/11) (Attachment # 11)
PROPOSED REVISIONS TO THE CODE OF ORDINANCES,
CHAPTER 39. PERSONNEL:
12. Second Reading Ordinance - Amending Code Of Ordinances,
Chapter 39, Personnel, Article III Employee Compensation And
Classification System, to revise Section 39-303 by deleting
provision to maintain 5% differential above employees
supervised by select positions in Pay Plan 400; to revise
Section 39-304 by adding City Auditor's Office; to revise
Sections 39-329, 39-332, 39-345, and 39-347 regarding
vacation leave; to revise Sections 39-340 and 39-354 regarding
sick leave; to revise Section 39-366 by adding personal leave
hours are not paid out at termination; repealing all other
Agenda
Regular Council Meeting
July 26, 2011
Page 7
13.
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
ordinances, and rules, or parts of ordinances and rules, in
conflict with this ordinance; providing for effective date. (First
Reading 07/19/11) (Attachment # 12)
PROPOSED FEE/RATE INCREASE ADJUSTMENTS
INCLUDED IN THE PROPOSED FY 2011-2012 BUDGET:
a. Second Reading Ordinance - Amending Sections 55-50, 55-
54, and 55-56, Code of Ordinances, City of Corpus Christi,
regarding water rates for Fiscal Year 2011-2012; providing
an effective date; and providing for publication. (First
Reading 07/19/11) (Attachment # 13)
b. Second Reading Ordinance - Amending Sections 12-108,
Code of Ordinances, City of Corpus Christi, regarding
Sunrise Beach recreation site rates for Fiscal Year 2011-
2012; providing an effective date; and providing for
publication. (First Reading 07/19/11) (Attachment # 13)
c. Second Reading Ordinance — Revising the title of Article VII,
Chapter 55, Code of Ordinances; amending Section 55-100,
Code of Ordinances, City of Corpus Christi, setting the
wastewater rates for Fiscal Year 2011-2012; establishing the
procedures for the Fiscal Year 2011-2012 of the wastewater
rates; providing an effective date; and providing for
publication. (First Reading 07/19/11) (Attachment # 13)
d. Second Reading Ordinance - Amending Section 2-79 of the
Code of Ordinances, by authorizing an annual nonresident
Library Fee; providing an effective date; and providing for
publication. (First Reading 07/19/11) (Attachment # 13)
L. REGULAR AGENDA
CONSIDERATION OF MOTIONS, RESOLUTIONS, AND ORDINANCES:
14. First Reading Ordinance - Providing for the hiring and
qualifications of a City Auditor; preserving the Auditor's
independence; providing access to City records; determining
distribution of audit reports; establishing the powers and duties
thereof; and providing for a peer review. (Attachment # 14)
Agenda
Regular Council Meeting
July 26, 2011
Page 8
15.
16.
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
a. Resolution determining that a public necessity exists for the
acquisition of easements for the Mary Rhodes Pipeline
Phase 2 Improvements Project for the public purpose, use
and construction of a water pipeline; and authorizing the City
Manager, City Attorney and Agents of the City to acquire the
easements by means of negotiations or eminent domain, if
necessary. (Attachment # 15)
b. Motion authorizing the City Manager, or designee, to
execute a Legal Services Agreement with Bruce Hawn,
Welder Leshin, LLP, to represent the City in environmental
services, permits, and land acquisition matters associated
with acquisition of Mary Rhodes Pipeline Phase 2
easements, at an hourly rate of $250.00, plus expenses,
subject to certification of funds. (Attachment # 15)
a. Ordinance appropriating $132,600 from the unreserved fund
balance in the No. 1140 Business/Job Development fund for
a grant from the Corpus Christi Business and Job
Development Corporation to Commercial Metals Company
("CMC") for development of a new secondary metal
processing facility on Bronco Road within the City of Corpus
Christi, in which CMC will invest at least $20,000,000 in
building improvements, furniture, fixtures, and equipment
and will retain at least 39 current full-time jobs and create
and maintain at least 12 new full-time jobs with an average
annual salary of at least $31,500 over a five year period;
changing the FY 2010-2011 operating budget, adopted by
Ordinance No. 028252 by increasing proposed expenditures
by $132,600. (Attachment # 16)
b. Resolution approving a business incentive agreement for the
creation and retention of jobs between the Corpus Christi
Business and Job Development Corporation and
Commercial Metals Company ("CMC"), which provides a
grant of up to $132,600, for development of a new
secondary metal processing facility on Bronco Road within
the City of Corpus Christi, in which CMC will invest at least
$20,000,000 in building improvements, furniture, fixtures,
and equipment and will retain at least 39 current full-time
jobs and create and maintain at least 12 new full-time jobs
Agenda
Regular Council Meeting
July 26, 2011
Page 9
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
with an average annual salary of at least $31,500 over a five
year period and authorizing the City Manager or designee, to
execute a business incentive project support agreement with
the Corpus Christi Business and Job Development
Corporation regarding implementation and administration of
the CMC, business incentive agreement for the creation and
retention of jobs. (Attachment # 16)
c. Resolution authorizing the execution of an agreement with
Commercial Metals Company ("CMC") providing for
temporary property tax abatement. (Attachment # 16)
17. Discussion and consideration of a date to conduct interviews for
the City Auditor position. (Attachment # 17)
M. PRESENTATIONS:
Public comment will not be solicited on Presentation items.
18. Report on 1-69 Town Hall Meeting (Attachment # 18)
N. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS
NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT
APPROXIMATELY 4:00 P.M., OR AT THE END OF THE
COUNCIL MEETING, WHICHEVER IS EARLIER. PLEASE
LIMIT PRESENTATIONS TO THREE MINUTES. IF YOU PLAN
TO ADDRESS THE COUNCIL DURING THIS TIME PERIOD,
PLEASE SIGN THE FORM AT THE REAR OF THE COUNCIL
CHAMBER, GIVING YOUR NAME, ADDRESS AND TOPIC. (A
recording is made of the meeting; therefore, please speak into the
microphone located at the podium and state your name and address.
If you have a petition or other information pertaining to your subject,
please present it to the City Secretary.)
PLEASE BE ADVISED THAT THE OPEN MEETINGS ACT
PROHIBITS THE CITY COUNCIL FROM RESPONDING AND
DISCUSSING YOUR COMMENTS AT LENGTH. THE LAW
ONLY AUTHORIZES THEM TO DO THE FOLLOWING:
1. MAKE A STATEMENT OF FACTUAL INFORMATION.
2. RECITE AN EXISTING POLICY IN RESPONSE TO THE
INQUIRY.
3. ADVISE THE CITIZEN THAT THIS SUBJECT WILL BE
PLACED ON AN AGENDA AT A LATER DATE.
Agenda
Regular Council Meeting
July 26, 2011
Page 10
CITY COUNCIL
PRIORITY ISSUES
(Refer to legend at the end of the
agenda summary)
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 /S NOT MEANT TO RESTRAIN A CITIZEN'S FIRST
AMENDMENT RIGHTS.
0. CITY MANAGER'S COMMENTS:
* Update on City Operations
P. 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 3/4' p.m.,
on July 21, 2011.
Armando Chapa l
City Secretary
NOTE: The City Council Agenda can be found on the City's Home
Page at www.cctexas.com on the Thursday before regularly
scheduled council meetings. If technical problems occur, the
agenda will be uploaded on the Internet by the Friday.
Symbols used to highlight action items that implement
council goals are on attached sheet.
City Council Goals 2010-2011
Bayfront and Downtown Initiatives
Complete Utility Master Plans
Conservation and Recycling Education Plan
Comprehensive Economic Development
Approach
Street Improvement Plan
Development Process Improvement
Mary Rhodes Pipeline Phase II Water Plan
Safe and Healthy Community Initiatives
(Gang, Graffiti, and Physical Health Emphasis)
Support Continued Military Presence
1
MINUTES
City of Corpus Christi, Texas
Regular Council Meeting
July 19, 2011 - 12:00 p.m.
Present:
Mayor Joe Adame
Mayor Pro Tem Larry Elizondo, Sr.
Council Members:
Chris Adler
Kevin Kieschnick
Priscilla Leal
David Loeb
John Marez
Nelda Martinez
Mark Scott
City Staff:
City Manager Ronald L. Olson
City Attorney Carlos Valdez
City Secretary Armando Chapa
Mayor Adame called the meeting to order in the Council Chambers of City Hall. The
invocation was delivered by Pastor Mark Montgomery with Southside Community Church
and the Pledge of Allegiance to the United States Flag was led by Council Member John
Marez.
City Secretary Chapa called the roll and verified that the necessary quorum of the
Council and the required Charter officers were present to conduct the meeting.
Mayor Adame called for approval of the minutes of the Regular Council meeting of
July 12, 2011. Council. Member Leal made a motion to amend the minutes to include
comments she made to Item No. 19, regarding the completion of curbs and gutters in the
Manshiem Sunnybrook Area, seconded and passed to approve the minutes as amended.
Mayor Adame referred to Item No. 2 and the following board appointments were
made:
Animal Control Advisory Committee
Barbara E. Beynon (Animal Welfare), Reappointed
Samantha Person (Animal Welfare/Shelter), Reappointed
Dr. Nina Sisley (Community at Large), New Appointment
Corpus Christi Convention & Visitors Bureau
Daniel Dain (Restaurant Industry), Reappointed
Michael Womack (Attraction Industry), Reappointed
Angie Flores (At Large), New Appointment
Rakesh (Rick) Patel (At Large), New Appointment
Kaushik "Sheik" Bhakta (Hotel Industry), New Appointment
City Council Minutes
July 19, 2011
Page 2
Downtown Management District
Tracy (Tray) Bates (Agent, Employee or Tenant), New Appointment
Cass Austin Gabriel (Resident of District), New Appointment
Watershore and Beach Advisory Committee
Jennifer Pollack (Scientist), New Appointment
CONSENT AGENDA:
Mayor Adame called for consideration of the Consent Agenda (Items 3 - 15). There
were no comments from the audience. City Secretary Chapa polled the Council for their
votes as follows:
3. MOTION NO. 2011-146
Motion approving the purchase, configuration and installation of a laboratory
information management system (LIMs) with Perkin Elmer Health Sciences, Inc.,
of Shelton, CT for the Water Department Laboratory, in accordance with Request
for Proposal BI -0050-11, based on best value, for a total amount of $109,256.
Funds have been budgeted by the Water Department in FY 2010-2011.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
4. MOTION NO. 2011-147
Motion approving the lease purchase of eight (8) pickup trucks and the purchase of
ten (10) pickup trucks, four (4) cargo vans, one (1) sport utility vehicle, and two (2)
heavy duty trucks in the amount of $539,195. The vehicles are awarded to the
following companies for the following amounts in accordance with Bid Invitation No.
BI -0151-11, based on low bid and low bid meeting specifications. AII25 vehicles are
replacement units to the fleet. These vehicles will be used by Solid Waste, Streets,
Gas, Water, Storm Water and Wastewater Departments. Funding for the purchase
of the vehicles is available in the Capital Outlay Budget of the Fleet Maintenance
Services Fund. Financing for the lease purchase of the pickup trucks will be
provided through the City's lease/purchase financing contractor.
Champion Ford Access Ford
Corpus Christi, TX Corpus Christi, TX
Items: 1-10 Item: 11
$497,924 $41,271
Grand Total: $539,195
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
—10—
City Council Minutes
July 19, 2011
Page 3
5. MOTION NO. 2011-148
Motion approving the lease purchase of five (5) heavy trucks and the purchase of
eight (8) heavy trucks in the amount of $1,528,225. The heavy trucks are awarded
to the following companies for the following amounts in accordance with Bid
Invitation No. BI -0166-11, based on low bid. All 13 heavy trucks are replacement
units to the fleet. These heavy trucks will be used by Gas, Solid Waste, Storm
Water, Street and Wastewater Departments. Funding for the purchase of the heavy
trucks is available in the Capital Outlay Budget of the Fleet Maintenance Services
Fund. Financing for the lease purchase of the vehicles will be provided through the
City's lease/purchase financing contractor.
Corpus Christi Freightliner
Corpus Christi, TX
Items: 1-5
$598,450
Santex Truck Center LTD
San Antonio, TX
Items: 6-8
$415,227
Grand Total: $1,528,225
Rush Truck Center
San Antonio, TX
Items: 9-10
$514,548
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
6. MOTION NO. 2011-149
Motion approving the purchase and installation of a 385 horsepower Diesel
Industrial Engine from Holt Texas, LTD, of San Antonio, Texas, based on only bid,
in accordance with Bid Invitation No. BI -0160-11 for a total amount of $201,300.
This engine will replace an existing engine that has reached its service life. Funds
are available in the FY 2010/2011 operations budget of the Storm Water
Department.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
7.a. MOTION NO. 2011-150
Motion approving the purchase of playground equipment from T.F. Harper &
Associates LP, of Austin, Texas based on the Cooperative Purchasing Agreement
with the Texas Local Government Cooperative, in the amount of $63,130.68. The
purchase is for new and replacement park equipment for Solar Estates, Woodlawn,
John Jones, Claremont, Lincoln, and Sands parks. Funding is budgeted and
available in the Parks & Recreation 2010 General Obligation (Bond 08) CIP Fund.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
—11—
City Council Minutes
July 19, 2011
Page 4
7.b. MOTION NO. 2011-151
Motion approving the purchase and installation of three PlayWorld Challenger play
structures and ground coverings from The Playwell Group, Inc., of Dallas, Texas
based on the Cooperative Purchasing Agreement with the Texas Local Government
Cooperative, in the amount of $109,000.95. The play structures and ground
coverings are for Lincoln, Solar Estates, and Hans and Pat Suter Wildlife parks.
Funding is budgeted and available in the Parks and Recreation 2008 Tax Note CIP
and 2010 General Obligation (Bond 08) CIP Funds.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
8. MOTION NO. 2011-152
Motion approving the purchase of a dredge machine from SRS Crissafulli, Inc., of
Glendive, Montana in accordance with Bid Invitation No. BI -0170-11, based on low
bid meeting specifications, for a total amount of $204,800. The equipment will be
used at the O.N. Stevens Water Treatment Plant. Funds have been budgeted by
the Water Department in FY2010-2011.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
9.a. MOTION NO. 2011-153
Motion authorizing the City Manager or his designee to accept a grant in the amount
of $392,474 from the Texas Automobile Theft Prevention Authority (ATPA) to
continue the motor vehicle theft enforcement grant within the Police Department for
Year 11 with a City cash match of $441,505, in-kind match of $14,019, and program
income match of $9,224, for a total project cost of $857,222 and to execute all
related documents.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
9.b. ORDINANCE NO. 029129
Ordinance appropriating $392,474 from the Texas Automobile Theft Prevention
Authority (ATPA) in the No. 1061 Police Grants Fund to continue the motor vehicle
theft enforcement grant within the Police Department.
An emergency was declared, and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez, and Scott voting "Aye".
—12—
City Council Minutes
July 19, 2011
Page 5
10. RESOLUTION NO. 029130
Resolution authorizing the City Manager or designee to submit a grant application
in the amount of $35,500 to the Texas Department of Public Safety, Governor's
Division of Emergency Management, for FY 2012 Hazardous Materials Emergency
Preparedness (HMEP) Grant Program for public awareness brochures, school book
covers, production and broadcast of public service announcements, to conduct a
hazardous material response capability assessment, and to conduct two emergency
response exercises, with a hard match of $7,100, and authorizing the City Manager
or designee to apply for, accept, reject, alter or terminate the grant.
The foregoing resolution was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
11. ORDINANCE NO. 029131
Ordinance appropriating $41,000 in Fund No. 4611 Airport Capital Reserve Fund,
authorizing the transfer of $41,000 to and appropriating in Fund No. 4610 Airport
Fund to fund capital expenditures at the Corpus Christi International Airport and
changing the FY 2010-2011 Operating Budget adopted by Ordinance No. 028683
by increasing revenues and appropriations by $41,000 each.
An emergency was declared, and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez, and Scott voting "Aye".
12. ORDINANCE NO. 029132
Ordinance appropriating $85,000 in the No. 1020 General Fund from additional
revenues to be received from the Utilities departments for street cut repairs;
changing the FY 2010-2011 Operating Budget adopted by Ordinance No. 028683
by increasing revenues and appropriations by $85,000 each.
An emergency was declared, and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez, and Scott voting "Aye".
13.a. MOTION NO. 2011-154
Motion authorizing the City Manager to accept $3,500 in donations from various
local organizations for expenses incurred in relation to the City Manager's Welcome
Reception on May 4, 2011.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
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13.b. ORDINANCE NO. 029133
Ordinance appropriating $3,500 in donations in the No. 1020 General Fund for
expenses incurred in relation to the City Manager's Welcome Reception on May 4,
2011; changing FY 2010-2011 Operating Budget adopted by Ordinance No. 28683
by increasing revenues and expenditures by $3,500 each.
An emergency was declared, and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez, and Scott voting "Aye".
14. FIRST READING ORDINANCE
Ordinance authorizing City Manager or designee to execute a 14 year lease
agreement (with an option to renew for an additional 10 years at City Council's
discretion) with the Padre Island Yacht Club that supersedes the current 10 year
lease that expires on July 11, 2015.
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez,
and Scott voting "Aye".
15. ORDINANCE NO. 029134
Ordinance appropriating $42,106 from the Texas Historical Commission ($35,000
of which is contingent upon future funding by the Texas Legislature) in the No. 1069
Museum Grants Fund for the complete reinventory of the La Belle artifact collection
held at the Corpus Christi Museum of Science and History. (First Reading —
07/12/11)
The foregoing ordinance was passed and approved on its second reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez,
and Scott voting "Aye".
EXECUTIVE SESSION:
Mayor Adame announced the executive sessions which were listed on the agenda
as follows:
Executive session pursuant to Section 551.071 of the Texas Government Code to
consult with attorney regarding pending case No. 2010 -DCV -6004-E entitled City
of Corpus Christi vs. Friends of the Coliseum, et al in the 148th District Court of
Nueces County, Texas.
Executive session pursuant to Section 551.071 of the Texas Government Code to
consult with attorney regarding contemplated litigation involving municipal solid
waste services contracts.
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July 19, 2011
Page 7
Executive session pursuant to Section 551.071(1)(A) to consult with attorney
regarding Cause No. SA 06 CA 0381 OG, styled The City of San Antonio and All
Other Similarly Situated Texas Cities v. Hotel.com, et al, in the Federal District
Court, Western District of Texas, San Antonio Division.
Executive session pursuant to Section 551.074 of the Texas Government Code to
deliberate the appointment, employment and duties of the City Auditor.
The Council went into executive session. The Council returned from executive
session. Mayor Adame announced that no action would be taken in open session at this
time and that the Council would return to executive session later in the meeting to further
deliberate the City Auditor position.
CAPITAL BUDGET:
Mayor Adame referred to Item No. 16. Council Member Scott made a motion to
amend the ordinance to include the effulent project to be funded from the Reserves and
accomplished within a twelve-month period, seconded by Council Member Elizondo. City
Secretary Chapa polled the Council for their votes as follows:
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
16. ORDINANCE NO. 029135
Approving the FY 2012 Capital Budget and Capital Improvement Planning Guide
in the amount of $155,970,500.
The foregoing ordinance was passed and approved on its second reading as
amended with the following vote: Adame, Adier, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez, and Scott voting "Aye".
SPECIAL BUDGET CONSIDERATION ITEMS:
Oscar Martinez, Assistant City Manager provided a presentation on the FY 2012
Operating Budget and the tax rate impact. Mayor Adame called for comments from the
audience and the following citizens spoke: Harley Doerhen, Manuel Lopez, Diane
Lowrance, Joel Cortez, Sharlet Hatamker, Adan Chapa, Unidentified Citizen, Abel Chapa,
Gus Munoz, Soila Reyna, Jerry Redding, Allen Hoodye, T.C. Chadden, and Abel Alonzo.
Council Member Marez made a motion to amend Item No. 17a to fund Mental
Health Mental Retardation in the amount of $54,000 from the reserve appropriation,
seconded by Council Member Adier. City Secretary Chapa polled the Council for their
votes as follows:
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July 19, 2011
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The foregoing motion passed and approved with the following vote: Adame, Adler,
Loeb, Marez, and Martinez voting "Aye"; Leal, Kieschnick, Elizondo, and Scott
voting "No".
City Secretary Chapa informed the Council that a supplemental agenda was
prepared and Item No. 17 was reposted as follows. City Secretary Chapa polled the
Council for their vote as follows:
17.a. FIRST READING ORDINANCE
Adopting the City of Corpus Christi Budget for the ensuing Fiscal Year beginning
August 1, 2011; to be filed with the County Clerk; appropriating monies as provided
in the budget. (Tabled on 07/12/11)
The foregoing ordinance was passed and approved on its first reading as amended
with the following vote: Adame, Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez,
Scott voting "Aye"; Leal voting "No".
17.b. FIRST READIING ORDINANCE
17.b. FIRST READING ORDINANCE
To ratify increase of $1,058,875 in property tax revenues from last year's operating
budge as reflected in the 2011-2012 Operating Budget. (Tabled on 7/12/11)
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez and
Scott voting "Aye".
PRESENTATION:
MayorAdame deviated from the agenda and referred to Item No. 30. Assistant City
Manager Rudy Garza provided a presentation on the 82"' Legislative Session. Mr. Garza
recognized State Representative Raul Torres, State Representative Cohnie Scott, State
Representative Todd Hunter, and Rene Ramirez, Chief of Staff for State Representative
Chuy Hinojosa.
PUBLIC COMMENT:
MayorAdame called for petitions from the audience. The following citizens spoke:
Harley Doerhen, Darene Gregory, Jim Klein, Abel Alonzo, Mary Ann Kelly, Yolanda
Mandel, and Nilda Diaz.
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Page 9
SPECIAL BUDGET CONSIDERATION ITEM:
Mayor Adame referred to Item No. 18. Joan McKaughan, Interim Director of
Human Resources provided a presentation on the proposed revisions to the Personnel
Ordinance. Mayor Adame called for comments from the audience and there was none.
City Secretary Chapa polled the Council for their votes as follows:
18. FIRST READING ORDINANCE
Amending Code of Ordinances, Chapter 39, Personnel, Article III Employee
Compensation and Classification System, to revise Section 39-303 by deleting
provision to maintain 5% differential above employees supervised by select
positions in Pay Plan 400; to revise Section 39-304 by adding City Auditor's Office;
to revise Sections 39-329, 39-332, 39-345, and 39-347 regarding vacation leave;
to revise Sections 39-340 and 39-354 regarding sick leave; to revise Section 39-366
by adding personal leave hours are not paid out at termination; repealing all other
ordinances, and rules, or parts of ordinances and rules, in conflict with this
ordinance; providing for effective date. (Tabled on 07/12/11)
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez, Scott
voting "Aye"; Leal was absent.
Mayor Adame referred to Item No. 19. Eddie Houlihan, Assistant Director of
Management and Budget provided an overview of the fee increases. Mayor Adame called
for comments from the audience and there was none. City Secretary Chapa polled the
Council for their votes as follows:
19.a. FIRST READING ORDINANCE
Amending Sections 55-50, 55-54, and 55-56, Code of Ordinances, City of Corpus
Christi, regarding water rates for Fiscal Year 2011-2012; providing an effective date;
and providing for publication. (Tabled on 07/12/11)
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez, Scott
voting "Aye"; Leal was absent.
19.b. FIRST READING ORDINANCE
Amending Sections 12-108, Code of Ordinances, City of Corpus Christi, regarding
Sunrise Beach recreation site rates for Fiscal Year 2011-2012; providing an
effective date; and providing for publication. (Tabled on 07/12/11)
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July 19, 2011
Page 10
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez, Scott
voting "Aye"; Leal was absent.
19.c. FIRST READING ORDINANCE
Revising the title of Article VII, Chapter 55, Code of Ordinances; amending Section
55-100, Code of Ordinances, City of Corpus Christi, setting the wastewater rates for
Fiscal Year 2011-2012; establishing the procedures for the Fiscal Year 2011-2012
of the wastewater rates; providing an effective date; and providing for publication.
(Tabled on 07/12/11)
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez, Scott
voting "Aye"; Leal was absent.
19.d. RESOLUTION NO. 029136
Resolution authorizing adjustment of Parks, Recreation, Cultural and Leisure Time
Activities rental and recreational fees; adding new Rental Fees and Recreational
Fees for Fiscal Year 2011-2012; providing for publication; and providing for effective
date. (Tabled on 07/12/11)
The foregoing resolution was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez, Scott voting "Aye"; Leal was
absent.
19.e. FIRST READING ORDINANCE
Amending Section 2-79 of the Code of Ordinances, by authorizing an annual
nonresident Library Fee; providing an effective date; and providing for publication.
(Tabled on 07/12/11)
The foregoing ordinance was passed and approved on its first reading with the
following vote: Adame, Adler, Elizondo, Kieschnick, Loeb, Marez, Martinez, Scott
voting "Aye"; Leal was absent.
ZONING CASES:
Mayor Adame referred to Item No. 20, and a motion was made, seconded and
passed to open the public hearing on the following zoning case:
Case No. 0611-01, Port of Corpus Christi Authority: A change of zoning from the
"RS -6" Single -Family 6 District ("R -1B" One -family Dwelling District) to the "IH"
Heavy Industrial District ("I-3" Heavy Industrial District). The property to be rezoned
is described as approximately two (2) tracts, totaling approximately 144.93 acres,
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July 19, 2011
Page 11
of submerged land owner by the Port of Corpus Christi Authority, abutting to the
south end of the former Ingleside Naval Base and along the Corpus Christi Ship
Channel.
City PlannerAndrew Dimas referred to a powerpoint presentation including an aerial
view of the subject property, existing future land use, and ownership map. Mayor Adame
called for comments from the audience and there was none.
Council Member Martinez made a motion to close the public hearing, seconded by
Council Member Kieschnick, and passed. City Secretary Chapa polled the council for their
votes as follows:
20. ORDINANCE NO. 029137
Amending the Unified Development Code, upon application by Port of Corpus
Christi Authority, by changing the UDC Zoning Map in reference to two (2) tracts,
totaling approximately 144.93 acres, of submerged land owned by the Port of
Corpus Christi Authority, abutting to the south end of the former Ingleside Naval
Base and along the Corpus Christi Ship Channel, from the "RS -6" Single -Family 6
District (formerly "R -1B" One -family Dwelling District) to the "IH" Heavy Industrial
District (formerly "1-3" Heavy Industrial District); amending the Comprehensive Plan
to account for any deviations from the existing Comprehensive Plan; providing a
repealer clause; providing a penalty; providing for publication.
An emergency was declared and the foregoing ordinance was passed and approved
with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb, Marez,
Martinez voting "Aye", Scott abstained.
Mayor Adame referred to Item No. 21, and a motion was made, seconded and
passed to open the public hearing on the following zoning case:
Case No. 0611-02, Peter Jon Roel: A change of zoning from the RS -6 Single -
Family 6 District ("R -1B" One -family Dwelling District) to the "CN -1" Neighborhood
Commercial District ("B-1" Neighborhood Business District). The property to be
rezoned is described as Montrose Park Addition, Block 7, Lot 2, located at the
southeast corner of the intersection of Duncan Street and Ruth Street.
City Planner Andrew Dimas referred to a powerpoint presentation including an aerial
view of the subject property, existing land use, future land use, ownership map and the site
plan. Mayor Adame called for comments from the audience and there was none.
Council Member Martinez made a motion to close the public hearing, seconded by
Council Member Kieschnick, and passed. City Secretary Chapa polled the council for their
votes as follows:
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July 19, 2011
Page 12
21. ORDINANCE NO. 029138
Amending the Unified Development Code, upon application by Peter Jon Roel, on
behalf of Peter Jon Roel & Associates, LLC by changing the UDC Zoning Map in
reference to Montrose Park Addition, Block 7, Lot 2, located at the southeast corner
of the intersection of Duncan Street and Ruth Street, from the "RS -6" Single -Family
6 District (formerly "R-1 B" One -family Dwelling District) to the "CN -1" Neighborhood
Commercial District (formerly "B-1" Neighborhood Business District); amending the
Comprehensive Plan to account for any deviations from the existing Comprehensive
Plan; providing a repealer clause; providing a penalty; providing for publication.
An emergency was declared and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez and Scott voting "Aye".
Mayor Adame referred to Item No. 22, and a motion was made, seconded and
passed to open the public hearing on the following zoning case:
Case No. 0611-03, Jack Martin: A change of zoning from the RS-6/IO Single -
Family 6 District with an Island Overlay CR -1B/10" One -family Dwelling District with
an Island Overlay) to the RM-AT/IO Multifamily AT District with an Island Overlay
("AT/IO" Apartment Tourist District with an Island Overlay). The property to be
rezoned is described as Padre Island -Corpus Christi Section E, Block 2, Lot 10,
located at the southeast corner of the intersection of Aruba Drive and Running Light
Drive.
City Planner Andrew Dimas referred to a powerpoint presentation including an large
aerial view of the subject property, existing land use, future land use, ownership map, and
a view of the subject property. Mayor Adame called for comments from the audience and
there was none.
Council Member Martinez made a motion to close the public hearing, seconded by
Council Member Elizondo, and passed. City Secretary Chapa polled the council for their
votes as follows:
22. ORDINANCE NO. 029139
Amending the Unified Development Code,- upon application by Jack Martin, by
changing the UDC Zoning Map in reference to Padre Island — Corpus Christi
Section E, Block 2, Lot 10, located at the southeast corner of the intersection of
Aruba Drive and Running Light Drive, from the "RS-6/IO" Single -Family 6 District
with an Island Overlay (formerly "R-113/10" One -family Dwelling District with an
Island Overlay) to the "RM-AT/IO Multifamily AT District with an Island Overlay
(formerly "AT/IO" Apartment Tourist District with an Island Overlay); amending the
Comprehensive Plan to account for any deviations from the existing Comprehensive
Plan; providing a repealer clause; providing a penalty; providing for publication.
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July 19, 2011
Page 13
An emergency was declared and the foregoing ordinance was passed and
approved with the following vote: : Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez and Scott voting "Aye".
Mayor Adame referred to Item No. 23, and a motion was made, seconded and
passed to open the public hearing on the following zoning case:
Case No. 0611-04, Diane McGroarty: A change of zoning from the "RS-6/IO"
Single -Family 6 District with an Island Overlay ("R-1 B/IO" One -family Dwelling
District with an Island Overlay) to the "RM-AT/IO" Multifamily AT District with an
Island Overlay ("AT/IO" Apartment Tourist District with an Island Overlay). The
property to be rezoned is described as Padre Island -Corpus Christi Section E, Block
2, Lot 11, located at the southwest corner of Leeward Drive and Running Light
Drive.
City PlannerAndrew Dimas referred to a powerpointpresentation including an aerial
view of the subject property, future land use, tourist use, ownership map, and view of the
subject property. Mayor Adame called for comments from the audience and there was
none.
Council Member Scott made a motion to close the public hearing, seconded by
Council Member Marez, and passed. City Secretary Chapa polled the Council for their
votes as follows:
23. ORDINANCE NO. 029140
Amending the Unified Development Code, upon application by Diane McGroarty,
by changing the UDC Zoning Map in reference to Padre Island — Corpus Christi
Section E, Block 2, Lot 11, located at the southwest corner of the intersection of
Running Light Drive and Leeward Drive, from the "RS-6/IO" Single -Family 6 District
with an Island Overlay (formerly "R-1 B/IO" One -family Dwelling District with an
Island Overlay) to the "RM-AT/IO" Multifamily AT District with an Island Overlay
(formerly "AT/IO" Apartment Tourist District with an Island Overlay); amending the
Comprehensive Plan to account for any deviations from the existing Comprehensive
Plan; providing a repealer clause; providing a penalty; providing for publication.
An emergency was declared and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Elizondo, Kieschnick, Leal, Loeb,
Marez, Martinez and Scott voting "Aye".
Mayor Adame referred to Item No. 24, and a motion was made, seconded and
passed to open the public hearing on the following special permit extension:
Case No. 0610-01, Ralph and Irma Rivera: Motion to consider a one-year time
extension of a Special Permit (SP) to July 20, 2012 to allow for the continued use
of property located at 621 Mohawk Street as a vehicle storage facility, and to
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City Council Minutes
July 19, 2011
Page 14
consider that the requirement at SP Condition 2 of 7 that an eight (8) foot screening
fence be placed along the south property line shared with the one -family dwelling
district, be reduced to require a six (6) foot screening fence as must be installed
surrounding the remaining perimeter of the property.
City Planner Andrew Dimas stated that this case is for a special permit extension
and an alternation of one of the conditions of the special permit. He referred to a
powerpoint presentation including an aerial view of the subject property, the ordinance that
approved the special permit and the 7 conditions. Mr. Dimas stated that on of the Special
Permit conditions is screening. The screening requirement is 50% complete. The applicant
is requesting an alteration of the requirement to reduce the screening fence height from
8 feet to 7 feet."
Mayor Adame called for comments from the audience and the following citizen
spoke regarding the special permit extension: Abel Alonzo.
Council Member Elizondo made a motion to close the public hearing, seconded by
Council Member Kieschnick, and passed. City Secretary Chapa polled the council for their
votes as follows:
24. MOTION NO. 2011-155
Motion approving a one-year time extension of a Special Permit (SP) to July 20,
2012 to allow for the continued use of property located at 621 Mohawk Street as a
vehicle storage facility, and to consider that the requirement at SP Condition 2 of 7
that an eight (8) foot screening fence be placed along the south property line shared
with the one -family dwelling district, be reduced to require a six (6) foot screening
fence as must be installed surrounding the remaining perimeter of the property.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez, and Scott voting "Aye".
REGULAR AGENDA:
Mayor Adame referred to Item No. 25. Oscar Martinez, Assistant City Manager
referred to the modifications made to the ordinance regarding the composition of the
Parking Advisory Committee. Mayor Adame called for comments from the audience and
the following individuals spoke regarding this item: Darene Gregory. City Secretary Chapa
polled the Council for their votes as follows:
25.a. MOTION NO. 2011-156
Motion to amend prior to Second Reading Section 1 of the Ordinance amending the
Code of Ordinances, City of Corpus Christi, Chapter 53, Traffic, Parking Meters,
Parking Pay Stations and Parking Advisory Committee passed on first reading on
July 12, 2011, by revising Section 53-196.
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Page 15
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Marez, Martinez and Scott voting "Aye".
25.b. ORDINANCE NO. 029141
Amending Chapter 53, Traffic, Article I. Definition, Article II. Administration, Article
VI. Standing and Parking and Article VIII. Schedules of the Corpus Christi Code of
Ordinances, by revising various sections in said articles to provide additional
definition; to create and expand Parking Enforcement Officer duties; to provide
installation of parking meters and pay stations; to provide paid parking spaces and
zones and location; to provide time limits on paid parking spaces and zones; to
provide fee and exemptions; to provide parking citation for parking violation; to
establish Parking Advisory Committee; to establish parking zone and rate; to
provide for penalties; to provide for publication; to provide for a repealer clause; and
to provide an effective date of August 1, 2011. (First Reading — 07/12/11)
An emergency was declared, and the foregoing ordinance was passed and
approved as amended with the following vote: Adame, Adler, Elizondo, Kieschnick,
Leal, Loeb, Marez, Martinez and Scott voting "Aye".
Mayor Adame referred to Item No. 26. Oscar Martinez, Assistant City Manager
provided an overview of the decriminalization of parking citations. Mr. Martinez stated that
staff recommends an amendment to the ordinance to provide for the original schedule that
was included in proposed ordinance, with the condition of evaluating in Year 1.
Mayor Adame asked for comments from the audience and there was none. City
Secretary Chapa polled the Council for their vote as follows:
26. ORDINANCE RECONSIDERED AFTER PASSAGE
Amending Chapter 53, Traffic, Article III. Enforcement and Compliance, and Article
VI, Standing and Parking of the Corpus Christi Code of Ordinances, by revising
various sections in said articles to make stopping, standing and parking violation a
civil offense; to provide for civil penalties; to create parking improvement fund; to
provide parking citation as notice of administrative adjudication hearing and create
failure to answer citation an admission of liability; to provide Texas Department of
Motor Vehicle's record as prima facie evidence and presumption owner as violator;
to provide an increase in immobilization fee; to create an office of administrative
hearings and appoint hearing officer to conduct administrative adjudication hearing;
to provide an appeal and enforcement of hearing officer's finding; to provide
impoundment and immobilization of motor vehicle for unpaid parking citations; to
create violations to provide for penalties; to provide for publication; to provide for a
repealer clause; and to provide for effective date of October 1, 2011. (First Reading
- 7/12/11)
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Page 16
An emergency was declared, and the foregoing ordinance was passed and
approved with the following vote: Adame, Adler, Kieschnick, Loeb, and Martinez and
voting "Aye"; Elizondo, Leal, Marez and Scott were absent.
Council Member Martinez made a motion to reconsider Item No. 26, seconded by
Council Member Kieschnick. City Secretary Chapa polled the Council for their votes as
follows:
Th motion to reconsider was passed and approved with the following vote: Adame,
Adler, Kieschnick, Leal, Loeb, Martinez and Scott voting "Aye'; Elizondo and Marez
were absent.
Council Member Scott made a motion to go back to the original financial distribution
as previously presented. Council Member Martinez added that staff have the opportunity
to come back and make an alternate recommendation should revenues or expenditures
not trend as projected, and seconded by Council Member Loeb. City Secretary Chapa
polled the Council for their votes as follows:
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Kieschnick, Leal, Loeb, Martinez and Scott voting "Aye"; Elizondo and Marez
were absent.
City Secretary Chapa polled the Council for their votes as follows:
26. ORDINANCE NO. 029142
Amending Chapter 53, Traffic, Article III. Enforcement and Compliance, and Article
VI, Standing and Parking of the Corpus Christi Code of Ordinances, by revising
various sections in said articles to make stopping, standing and parking violation a
civil offense; to provide for civil penalties; to create parking improvement fund; to
provide parking citation as notice of administrative adjudication hearing and create
failure to answer citation an admission of liability; to provide Texas Department of
Motor Vehicle's record as prima facie evidence and presumption owner as violator;
to provide an increase in immobilization fee; to create an office of administrative
hearings and appoint hearing officer to conduct administrative adjudication hearing;
to provide an appeal and enforcement of hearing officer's finding; to provide
impoundment and immobilization of motor vehicle for unpaid parking citations; to
create violations to provide for penalties; to provide for publication; to provide for a
repealer clause; and to provide for effective date of October 1, 2011. (First Reading
- 7/12/11)
An emergency was declared, and the foregoing ordinance was passed and
approved as amended with the following vote: Adame, Adler, Elizondo, Kieschnick,
Leal, Loeb, Martinez, and Scott voting "Aye"; Marez was absent.
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July 19, 2011
Page 17
MayorAdame referred to Item No. 27. Fred Segundo, Director of Aviation explained
that this item is for a comprehensive facility and land appraisal review of undeveloped land
and facilities. MayorAdame asked for comments from the audience and there was none.
City Secretary Chapa polled the Council for their votes as follows:
27. MOTION NO. 2011-157
Motion authorizing the City Manager or designee to negotiate and execute a
contract with Aviation Management Consulting Group, in the amount of $49,500 for
the completion of the assigned scope of work for a facilities and land appraisal.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Martinez and Scott voting "Aye"; Marezwas
absent.
Mayor Adame referred to Item No. 28. Pete Anaya, Director of Engineering
provided an overview of the Kostoryz Road Improvement Phase 1 project, from Horne to
Sunnybrook. Mayor Adame called for comments from the audience and the following
individual spoke regarding this item: Harley Doerhen. City Secretary Chapa polled the
Council for their votes as follows:
28. MOTION NO. 2011-158
Motion authorizing the City Manager, or designee, to execute Change Order No. 2
with Texas Sterling Construction Company of Houston, Texas in the amount of
$216,100.85 for the Kostoryz Road Improvements Phase 1 from Horne to
Sunnybrook. (BOND ISSUE 2008)
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Martinez and Scott voting "Aye"; Marez was
absent.
29. WITHDRAWN BY STAFF
AlternZ
Mayor Adame announced that the Council was going back into executive session
on the following item:
Executive session pursuant to Section 551.074 of the Texas Government Code to
deliberate the appointment, employment and duties of the City Auditor.
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City Council Minutes
July 19, 2011
Page 18
The Council returned from executive session and the following motion was passed
and approved with the following vote:
MOTION NO. 2011-159
Motion directing staff to schedule interviews for July 26, 2011 with the following
applicants for the City Auditor position: Celina Gaona, James D. Barnes and Cheryl
Davenport.
The foregoing motion was passed and approved with the following vote: Adame,
Adler, Elizondo, Kieschnick, Leal, Loeb, Martinez and Scott voting "Aye"; Marezwas
absent.
31. POSTPONED BY STAFF
.. .
There being no further business to come before the Council, Mayor Adame
adjourned the Council meeting at 5:40 p.m. on July 19, 2011.
—26—
2
a. COMMISSION ON CHILDREN & YOUTH — Six (6) vacancies with terms to 5-01-12, 5-01-
13, and 5-01-14 representing the following categories: 1 — Social Services, 1— Religion, 1— At
Large, 1 — Law Enforcement, 1 — Youth, and 1 — District Attorney's Office.
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 Attorney'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) 5-01-12 8-12-08
Charles Imbergamo (At Large) 5-01-12 5-11-10
Dr. Ridge Hammon (At Large) 5-01-13 5-11-10
**Betty Trigo (Social Services) 5-01-11 5-11-10
***Robert Mirabal, Jr. (Religion) 5-01-13 5-13-08
Danny Kollaja (Business) 5-01-14 3-29-11
Guy Nickelson (Youth Services), Chair 5-01-12 11-08-05
Sally Ann Lewis (Education) 5-01-13 5-11-10
*Delia Oliveira (At Large) 5-01-11 5-11-10
*Isaac Valencia (Law Enforcement) 5-01-11 5-13-08
Fran Willms (Legal) 5-01-12 9-25-07
***Ariana Cordero (Youth Rep.) 5-01-13 5-11-10
***Rita Morales (D.A.'s Office), Vice -Chair 5-01-12 9-12-06
Lt. Tara Rene Martin (Sheriff's Office) 5-01-13 10-13-09
Capt. Tim Wilson (Police Off.) Advisory 12-06-95
(Note: The Commission on Children & Youth is recommending the reappointment of Delia
Oliveira (At Large) and Isaac Valencia (Law Enforcement). The Nueces County District
Attorney's Office is nominating Clarissa Silva as the representative for the District Attorney's
office. Staff is recommending postponement of the Social Services, Religion, and Youth
categories pending recruitment of additional applications.
Legend:
*Seeking reappointment
**Not seeking reappointment
***Resigned
****Exceeded number of absences allowed by ordinance
*****Has met six-year service limitation
—1—
ATTENDANCE RECORD OF MEMBER SEEKING REAPPOINTMENT
NO. OF MTGS. NO. % OF ATTENDANCE
NAME THIS TERM PRESENT LAST TERM YEAR
Delia Oliveira (At Large) 7 6 (1 excused) 86%
Isaac Valencia (Law Enforcement) 7 6 (1 excused) 86%
OTHER INDIVIDUALS EXPRESSING INTEREST
Ron Antosko
Denise Etheridge
Financial Advisor, Bank of America — Merrill Lynch.
Received MBA in International Trade and Series 7
License in securities. (At Large) (7/12/11)
Student (Junior), Tuloso-Midway High School. Ranked
10th in class. Activities include: Band, Soccer, CX
Debate, Extemp, Mock Trail, and UIL Math Team.
Interested in politics. (Youth) (1/16/11)
Jeff Fonseca Owner, Green Tree Lawn Care. (At Large) (6/08/11)
Margareta Fratila
Michael D. Huddleston
Sandra L. Jackson
Owner, Margaret's Greenhouse and European Floral
Design. Received Master of Science in Horticulture
and Agriculture from Horticultural University of
Bucharest, Romania, Master of Art Degree from
Webster University at St. Louis, Missouri and
Certification in Secondary Education from Corpus
Christi State University. Activities include: Americans
for Prosperity, Texas State Society of Washington,
D.C., Society of American Florists, Republican
Women's Club and Numerous Other Organizations.
Recipient of Republican Senatorial Medal of Freedom,
2003. (At Large) (6/29/11)
Child Unit Therapist, Padre Behavioral Hospital.
Received M.S. in Counseling from Texas A & M —
Corpus Christi and MBA from Kansas Wesleyan
University. Also works with MHMR of Nueces County.
(Social Services) (4/06/11)
Equipment Specialist, Corpus Christi Army Depot.
Attending Texas A&M University -Corpus Christi.
Activities include: Corpus Christi Area Chapter Black
in Government. (At Large) (4/28/11)
—2
William M. Kramer, Jr.
Anthony John Mulheron
Kesha Poncik
Raquel G. Richardson
Erica Rios
Agent, Kramer Insurance Agency. Received a
Bachelors in Political Science from Texas A&M
University -Corpus Christi. Activities include: Cystic
Fibrosis Walk and Diabetes Walk. (At Large)
(6/17/11)
Quality Control Inspector, L3. Owner, AJM Tactical.
Attends Liberty University Online. Activities include:
Wounded Warrior. (AtLarge)(5/02/11)
Office Manager, Mike's Custom Upholstery and
Interiors. Currently attending Del Mar College. Active
member of the Hispanic Women's Network of Texas. (At
Large) (6/06/11)
Owner, Brinca! Received MPA from Texas A&M
University -Corpus Christi. Formerly worked with the
City of Corpus Christi. Career Development Alumni.
(At Large) (6/17/11)
Front Desk Support, Francisco's Salon. Received BA
from Texas A&M University -Corpus Christi. Attended
Del Mar College. Activities include: Coastal Bend
Premie Network. (At Large) (5/05/11)
Clarissa Silva Assistant District Attorney, Nueces County District
Attorney's Office. (District Attorney's Office) (6/28/11)
Cookie Silverman Homemaker. Attended Texas Tech University.
Activities include: Jewish Community Center. (At
Large) (4/22/11)
Roger Vazquez Teaching Assistant, Texas A&M University -Corpus
Christi. Received a Bachelor's in Psychology from
University of Texas at Austin and Master's in Clinical
Psychology from Texas A&M University -Corpus
Christi. (At Large) (5/18/11)
b. LEADERSHIP COMMITTEE FOR SENIOR SERVICES - One (1) vacancy with term to 2-
01-13 representing the category of Community representative.
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, 3 - Direct service agencies, and 10- 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
Lindsey Edwards (Agency) 2-01-13 7-21-09
Henry Edward Savoy (Community) 2-01-13 2-08-11
Maria Clarissa Lopez (Agency) 2-01-12 12-15-09
Patricia Byrd (Senior Ctr.) 2-01-13 7-21-09
Esperanza "Hope" Lopez (Senior Ctr.) 2-01-12 2-23-10
Vicki N. Garza (Community) 2-01-12 8-26-08
***Rudy Martinez (Community) 2-01-13 2-08-11
Billy Ray Sayles (Community) 2-01-13 7-06-10
Ida Alvarado Hobbs (Community) 2-01-12 7-06-10
Dotson G. Lewis, Jr. (Community), Chair 2-01-13 4-08-08
Cecilia G. Huerta (Community) 2-01-12 2-24-09
Jose R. Villanueva (Community) 2-01-13 2-08-11
Gloria Gooding (Agency) 2-01-13 7-06-10
Felix Zavala, Jr. (Community) 2-01-12 2-08-11
Adelfa M. Martinez (Community) 2-01-12 2-24-09
(The Leadership Committee for Senior Services is recommending the new appointment of
Willie R Hardeman, Sr. as Community Representative.)
Legend:
*Seeking reappointment
**Not seeking reappointment
***Resigned
****Exceeded number of absences allowed by ordinance
*****Has met six-year service limitation
—4—
INDIVIDUALS EXPRESSING INTEREST
Ron Antosko
Jonathan Michael Barlow
Olga Gonzales
Willie R. Hardeman, Sr.
Sandra L. Jackson
William M. Kramer, Jr.
Anne F. Lee
Ted Schroeder
Financial Advisor, Bank of America — Merrill Lynch.
Received MBA in International Trade and Series 7
License in securities. (Community) (7/12/11)
Self Employed. Activities include: Volunteering with
Texas State Aquarium. (Community) (5/04/11)
Retired, Bilingual Research/Marketing Director.
Attended college. National Certified AARP Advocate.
Activities include: Nueces County Community Action
Board, Greenwood AARP Chapter 4386, Nueces
County Seniors, Inc., Greenwood Center Coffee Club,
Westside Business Association and League of Women
Voters. (Community) (4/25/11)
Retired, Federal Investigator. Attended college.
Activities include: Church Treasurer, former NAACP
President and Labor Relations Chairman, Secretary of
the Army Intern Program, Personnel Management
Specialist, Supervisor Employee Relations Specialist,
and EEOC Investigator. (Community) (4/11/11)
Equipment Specialist, Corpus Christi Army Depot.
Attending Texas A&M University -Corpus Christi.
Activities include: Corpus Christi Area Chapter Black
in Government. (Community) (4/28/11)
Agent, Kramer Insurance Agency. Received a
Bachelors in Political Science from Texas A&M
University -Corpus Christi. Activities include: Cystic
Fibrosis Walk and Diabetes Walk. (Community)
(6/17/11)
Politically Active. Activities include: A.A.R.P., R.C.
Sultanas Women's Organizations and Church Oriented
Groups. (Community) (1-3-11)
Owner/Administrator/Instructor, Gulf Coast Food
Manager Certification Program. Received Degree in
Business Management from University of Kentucky.
Past President of Elizabeth Town, Kentucky Jaycees
and Lions. (Community) (4/12/11)
—5—
3
Coy of
Corpus
Christi
WSINsimassy
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: 07/18/2011
TO: Ronald L. Olson, City Manager
FROM: Michael Barrera, Assistant Director of Financial Services
mikeb@cctexas.com
361-826-3169
Award for purchase: One (1) Boom Mower Tractor
(Bid Invitation No. BI -0193-11)
PURPOSE:
Motion approving the purchase of one (1) boom mower tractor from H &V Equipment Services, Inc ,
Corpus Christi, Texas, for the total amount of $134,903.82. The award is based on the Cooperative
Purchasing Agreement with the Texas Local Government Cooperative. This unit is a replacement to
the fleet and will be used by the Storm Water Department. Funds are available in the Storm Water
Operations Budget in FY2010-2011.
BACKGROUND AND FINDINGS:
The Storm Water Department is responsible for mowing and maintaining approximately 1,913 acres
of right-of-way (ROW) ---- Nine hundred and seventy-four (974) acres of unimproved street ROW
mowing, 782 acres of major ditch ROW mowing, and 156 acres of improved street ROW mowing.
Approximately 52% is done by contract.
The mower will be used by Storm Water to mow drainage ditches throughout the City. The tractor is
equipped with a specialized boom arm that allows for the mowing of 25- to 30 -foot deep ditches. The
expected life for a boom mower tractor is eight years. The current unit is ten years old and currently
out of service. In the last three years the department has spent approximately $48,098 in repairs.
This unit is a replacement to the fleet. The replacement unit will be disposed of through standard
disposal of surplus property procedures, including live and/or electronic auctions.
ALTERNATIVES:
Repair the existing equipment at an approximate cost of $15,000 with no certainty as to the
continued reliability of the machine.
FINANCIAL IMPACT:
o Not Applicable
x Operating Expense o Revenue
❑ CIP
FISCAL YEAR:
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
$ 135,000.00
$135,000.00
Encumbered/Expended
amount as of (07/19/11)
0.00
0.00
This item
134,903.82
134,903.82
BALANCE
96.18
96.18
FUND(S): Water Department
-29-
RECOMMENDATION:
Staff recommends approval of the motion as presented.
CONFORMITY TO CITY POLICY:
This purchase conforms to all City purchasing policies and procedures and State statutes
regulating procurement.
EMERGENCY / NON -EMERGENCY:
Not applicable.
DEPARTMENTAL CLEARANCES:
Storm Water Department
LIST OF SUPPORTING DOCUMENTS:
Bid tabulation attached
Cc: Brian Narvaez, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
Margie Rose, Assistant City Manager
Valerie Gray, Director of Storm Water and Street Operations
—30—
CITY OF CORPUS CHRISTI
PURCHASING DIVISION
BUYER: GABRIEL MALDONADO
COUNCIL DATE: 07/26/11
ITEM DESCRIPTION
QTY.
PRICE SHEET
BUYBOARD CONTRACT #373-11
UNIT
H & V EQUIPMENT SERVICES, INC.
CORPUS CHRISTI, TEXAS
Unit Extended
Price Price
I. John Deere 6430 JD/4wd/16X16 creeper
gear with Alamo-Axtreme 28' Joy Stick
Controlled Boom Mower and 60"
Axtreme Cutting Head including
extended factory warranty 5 year/5000
- hours, extended boom warranty - 2 years.
"Full Machine" 6430JD Tractor
1
Each
$134,903.82 $134,903.82
Award Total $134,903.82
-31-
4
Corpus
Christi
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: July 19, 2011
TO: Ronald L. Olson, City Manager
FROM: Pete Anaya, P.E., Director of Engineering Services
E -Mail: Petean@cctexas.com Work Phone: 826-3781
Lawrence Mikolajczyk, Director of Solid Wastes Services
E -Mail: Lawm@cctexas.com Work Phone: 826-1972
Approval of Contracts for Landfill Ground Water Monitoring Services for J.C.
Elliott and Cefe Valenzuela for 2011- 2012
PURPOSE:
a. Motion authorizing the City Manager, or his designee, to execute a geotechnical services
agreement with Kleinfelder, Inc. of Corpus Christi, Texas in an estimated amount not to exceed
$93,000.00 for the J. C. Elliott Landfill Groundwater Monitoring and Sampling Agreement —
2011-2012.
b. Motion authorizing the City Manager, or his designee, to execute a geotechnical services
agreement with Kleinfelder, Inc. of Corpus Christi, Texas in an estimated amount not to exceed
$116,000.00 for the Cefe Valenzuela Landfill Groundwater Monitoring and Sampling Agreement
— 2011-2012.
BACKGROUND AND FINDINGS:
TCEQ requires the installation and monitoring of groundwater monitoring wells around solid waste
landfills. TCEQ regulations require groundwater monitoring continue in accordance with the
Groundwater Monitoring and Sampling Plan approved TCEQ Landfill Permit for Cefe Valenzuela
Landfill. Monitoring is required for the operational life of the landfill and for a period of thirty (30) years
after final closure. The monitoring is to ensure there is no migration of leachate off the landfill site.
Landfill cells are designed to prevent the flow of groundwater into and out of disposal cells. Modern
disposal cells are constructed with liners and leachate collection system to allow any water to be
collected for treatment.
J. C. Elliott Monitoring Contract
There are twenty-three (23) groundwater monitoring wells that will be sampled during FY2011-2012
located at J. C. Elliot Landfill. The Groundwater Sampling and Analysis Plan (revised March 5, 2002)
sets for the sampling requirements and procedures sampling and analysis. The GWSAP requires semi-
annual detection monitoring of the groundwater wells. Quarterly background monitoring of unfiltered
metals for all wells will also be conducted. The sampling and background detection schedule are
based on the TECQ approved Groundwater Plan. Six monitor wells that are no longer needed will be
decommissioned, plugged and abandoned.
—35—
Page 2 of 3
Table 1 Planned 2012 Sampling Sched
Wells
January 2012
July 2012
23
Detection Monitoring
Detection Monitoring
Total
23 wells
23 wells
Sampling of the well system is based on the current constituent list (GWSAP, December 26, 2007).
This activity will be in accordance with established sampling procedures and will comply with the new
GWSAP (except for the constituents) and the TCEQ position paper. During the detection monitoring
events, background sampling will be conducted for constituents in new wells and wells that will be
retained in the future monitoring network.
The new permit specifies sampling TCEQ-required constituents (fifteen metals plus volatile organics).
Background monitoring for these constituents in new and existing wells is required. Kleinfelder will
prepare an Annual Report as required by TCEQ. The report will be transmitted to the City and TCEQ.
The results will be evaluated for statistical significant changes which will be verified by re -sampling the
affected wells. The contract summary for J. C. Elliott Monitoring is attached.
Cefe Valenzuela Monitoring Contract:
There are thirty (30) groundwater monitoring wells located at Cefe Valenzuela Landfill that will be used
for the FY2011-2012 year.
Table 2 Planned Sampling S
Wells
August 2011
November 2011
February 2012
May 2012
Existing
Detection, Background
—18 wells
Detection, Background
—18 wells
New
Background —12 wells
Background — 7
wells
Background - 12 wells
Background—
7 wells
Total
Sampled*
30 wells
7 wells
30 wells
7 wells
'The number of wells sampled is based on the TECQ approved Ground Water Sampling and Analysis
Plan.
Four sampling events for landfill monitor wells will be conducted on quarterly intervals. These events
will include combinations of detection monitoring for currently approved constituents, and background
monitoring for new constituents required by TCEQ. The Groundwater Sampling and Analysis Plan
(GWSAP) dated August 26, 2009 sets the constituents for testing (a total of fifteen metals plus volatile
organics). Both new and existing wells will be sampled for these new constituents.
Kleinfelder will continue quarterly methane monitoring. Monitoring will occur at 16 perimeter gas
monitoring probes, 3 gas pipeline vents and 5 onsite structures.
The Groundwater Sampling and Analysis Plan sets for the background and detection monitoring
requirements and procedures for sampling and analysis. Background and monitoring events will occur
concurrently to reduce field charges that will be incurred by the City. The Groundwater Plan requires
semi-annual detection monitoring of the groundwater wells. Quarterly background monitoring of
unfiltered metals and methane for all wells will also be conducted. Reports of the monitoring events will
be prepared for the City with copies for TCEQ. Other tasks include re -verification sampling, statistical
—36—
Page 3 of 3
update of background data, and other consulting required by the program. The contract summary is
attached.
ALTERNATIVES:
TCEQ requires all testing and certifications for landfills to be provided by independent third parties.
Staff does not possess the expertise to perform the required sampling, laboratory testing, and
preparation of required TCEQ reports.
FINANCIAL IMPACT:
❑ Not Applicable
X Operating Expense o Revenue
❑ CIP
FISCAL YEAR:
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
0
Encumbered/Expended
amount as of (DATE)
0
This item
0
209,000
209,000
BALANCE
0
0
209,000
209,000
FUND(S): General Fund
Comments: The contracts will result in the expenditure of an amount not to exceed $209,000.00 during
FY2011-2012.
RECOMMENDATION:
Approval of the motions as presented.
CONFORMITY TO CITY POLICY:.
The contracts and selection process complies with the Professional Procurement Act and City Policy.
The contracts will allow the City to comply with the Landfill Operating Permits and Ground Water
Sampling and Analysis Plans approved by TCEQ for J.C. Elliott and Cefe Valenzuela Landfills.
EMERGENCY/NON-EMERGENCY:
Not applicable.
DEPARTMENTAL CLEARANCES:
Solid Waste Services and Engineering Services
LIST OF SUPPORTING DOCUMENTS:
Contract Summaries
Location Map
Cc: Veronica Ocanas, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
Juan Perales, Jr., P.E., Assistant City Manager
—37—
CONTRACT SUMMARY
J. C. Elliott
SCOPE OF BASIC SERVICES
Performance Period
The services proposed herein will be performed from August 1, 2011 to July 31, 2012.
Project Summary
Kleinfelder will conduct two sampling events for landfill monitor wells on semi-annual
intervals. These events will include detection monitoring for currently approved
constituents required by TCEQ. The scope of work includes annual reporting and
related groundwater consulting services. A statistical analysis will be performed to
update the background upper prediction limits. Six obsolete monitoring wells will be
decommissioned and reported in accordance with TCEQ requirements.
Detection Monitoring
Detection monitoring during the performance period will include two monitoring events
planned for January 2012 and July 2012. Kleinfelder will sample the 23 detection
monitoring wells for the dissolved hazardous metals (Appendix 1 list) and volatile
organic compounds specified in the Groundwater Sampling and Analysis Plan
(GWSAP) dated December 26, 2007.
Following each semi-annual detection monitoring event, Kleinfelder will compare the
results with background values, and if exceedances occur, Kleinfelder will prepare
notification reports to send to TCEQ.
The estimated cost of this activity is $42,000.
2011-12 Reporting
Kleinfelder will submit data semi-annually to the TCEQ, and will prepare the 2012
annual groundwater monitoring report the in accordance with TCEQ requirements in the
regulations and the Groundwater Sampling and Analysis Plan. This report is due 90
days after the last sampling event and is presently estimated for submittal in October,
2011.
Kleinfelder will transmit one paper copy and one electronic copy of the report to the City
of Corpus Christi and 3 paper copies to the TCEQ.
The estimated cost of this activity is $18,500.
Verification Re -sampling
After each detection monitoring event, Kleinfelder will evaluate data to determine if
statistically significant changes (SSC) have occurred. In the event that such changes
have occurred, Kleinfelder will notify the TCEQ in accordance with the requirements as
—38—
described above. Kleinfelder will conduct verification sampling of the well(s) in which
SSCs occurred.
The proposed verification re -sampling budget allows for up to 1 day of sampling per
resampling
event (up to two annually) and an analytical budget of up to $500 per event.
The estimated cost for this activity is $10,000.
Statistical Update of Background Data
Upon completion of the background monitoring in July, 2011, groundwater data will be
statistically evaluated to include results from the previous monitoring events. Updating
will proceed in accordance with the statistical analysis plan used by the landfill to
determine the values initially. This includes determining the number of results above
detection for each analyte/well combination, examining data for trends, examining
distributional assumptions, estimating results for censored data by appropriate means,
and calculating the upper prediction limit. The results of the analysis will be presented
to the TCEQ with a request for approval.
The estimated cost for these services is $ 9,000.
Monitoring Well Decommissioning
Six monitoring wells (MW -6, MW -9, MW -11, MW -13, MW -14 and MW -15) not required
for future monitoring will be decommissioned. Services will include demolition/disposal
of the concrete pads, steel well covers and protective bollards, pulling removable 4 -inch
PVC casing, pressure cementing the hole or remaining casing to ground surface,
restore well site to surface grade with clean soil, and filing State of Texas well plugging
reports.
The estimated cost for these services is $ 8,500.
Consulting Services
Consulting Services includes activities not specifically related to the collection, analysis,
and reporting of data, such as permit modifications, alternate source demonstrations,
and responding to TCEQ inquiries, notices of deficiency, or notices of violation. In
addition, Kleinfelder may lend its expertise in others matters related to groundwater, as
requested by the City of Corpus Christi.
The estimated cost for these services is $ 5,000.
ADDITIONAL SERVICES
The following services are not included in the Basic Services and will be considered as
Additional Services, if required or requested:
❑ Meetings/interviews other than those described in the Basic Services.
❑ The services of specialty subconsultants or other special outside services other
than those described in Basic Services.
O Any other services not specifically included in Basic Services.
DELIVERABLES
One signed, bound copy and one electronic copy of the annual report will be prepared
—39—
and transmitted to the City of Corpus Christi. In addition, we will submit three hard
copies of the annual report to the TCEQ.
COMPENSATION
Kleinfelder proposes to perform the Basic Services on a Time and Materials basis for
$93,000. This amount will .not be exceeded without prior approval. The Client and
Kleinfelder may subsequently agree in writing to provide for additional services to be
rendered under this agreement for additional, negotiated compensation.
—40—
CONTRACT SUMMARY
Cefe Valenzuela Landfill
SCOPE OF BASIC SERVICES
Performance Period
The services proposed herein will be performed from August 1, 2011 to July 31, 2012.
Project Summary
Kleinfelder will conduct four sampling events for landfill monitor wells on quarterly
intervals. These events will include combinations of detection monitoring for currently
approved constituents, and background monitoring for new constituents required by
TCEQ. Both new and existing wells will be sampled for these new constituents.
Verification resampling events will be conducted as necessary. The scope of work
includes annual reporting and related groundwater consulting services. A statistical
analysis will be performed to update the background upper prediction limits. Kleinfelder
will continue quarterly methane monitoring
Detection Monitoring
Detection monitoring during the performance period will include two monitoring events
planned for August 2011 and February 2012. Kleinfelder will sample the existing 18 -
well system for the dissolved hazardous metals (arsenic, cadmium, chromium, copper,
lead, nickel, selenium, silver, and zinc) and volatile organic compounds specified in the
Groundwater Sampling And Analysis Plan (GWSAP), Revision 1, dated February 5,
2007. Background sampling for total metals listed in the current GWSAP August 26,
2009 in existing and newly installed wells will be conducted concurrently.
The estimated cost of this activity is $45,000.
Background Monitoring
Background monitoring during the performance period will include four monitoring
events planned for August 2011, November 2011, February 2012, and May 2012.
Background samples will be analyzed for total concentrations of 15 metals listed in the
current GWSAP dated August 26, 2009 in existing and newly installed wells.
The estimated cost for the background -only sampling events is $12,000.
Methane Monitoring
Kleinfelder will conduct quarterly methane monitoring at the Cefe Valenzuela Landfill. A
LandTech meter will be used to test methane levels in 16 perimeter gas monitoring
probes, 3 gas pipeline vents and 5 onsite structures. Data will be transmitted via letter
report to the City.
—41—
The estimated cost for this activity is $4,000.
2011-12 Reporting
Kleinfelder will compile, review and evaluate data quarterly and will submit notices of
background exceedances, if any, to the TCEQ. Kleinfelder will prepare necessary
reporting forms and submit the 2011 annual groundwater monitoring report in
accordance with TCEQ requirements in the regulations and the Groundwater Sampling
and Analysis Plan. This report is due 90 days after the last sampling event and is
presently estimated for submittal in February, 2012.
Kleinfelder will transmit one paper copy and one electronic copy of the report to the City
of Corpus Christi and 3 paper copies to the TCEQ.
The estimated cost of this activity is $32,000.
Verification Re -sampling
After each detection monitoring event, Kleinfelder will evaluate data to determine if
statistically significant changes (SSC) have occurred. In the event that such changes
have occurred, Kleinfelder will notify the TCEQ in accordance with the requirements as
described above. Kleinfelder will conduct verification sampling of the well(s) in which
SSCs occurred.
The proposed verification re -sampling budget allows for up to 1 day of sampling per
resampling event (up to two annually) and an analytical budget of up to $500 per event.
The estimated cost for this activity is $9,000.
Statistical Update of Background Data
Upon completion of the background monitoring, groundwater data will be statistically
evaluated to include results from the previous monitoring events. Updating will proceed
in accordance with the statistical analysis plan used by the landfill to determine the
values initially. This includes determining the number of results above detection for
each analyte/well combination, examining data for trends, examining distributional
assumptions, estimating results for censored data by appropriate means, and
calculating the upper prediction limit. The results of the analysis will be presented to the
TCEQ with a request for approval.
The estimated cost of this activity is $9,000.
Consulting Services
Consulting Services includes activities not specifically related to the collection, analysis,
and reporting of data, such as permit modifications, alternate source demonstrations,
and responding to TCEQ inquiries, notices of deficiency, or notices of violation. In
addition, Kleinfelder may lend its expertise in others matters related to groundwater, as
—42—
requested by the City of Corpus Christi.
The allowed cost for these services, if required, is $ 5,000.
DELIVERABLES
Five signed, bound copies of each of the annual report will be prepared and transmitted
to the City of Corpus Christi. In addition, we will submit three copies of the annual report
to the TCEQ.
COMPENSATION
Kleinfelder proposes to perform the Basic Services on a Time and Materials basis for
$116,000. This amount will not be exceeded without prior approval. The Client and
Kleinfelder may subsequently agree in writing to provide for additional services to be
rendered under this agreement for additional, negotiated compensation.
—43—
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EXHIBIT "C"
APPROVAL OF CONTRACTS FOR
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SERVICES FOR J.C. ELLIOT AND
CEFE VALENZUELA FOR 2011-2012
CITY COUNCIL EXHIBIT
CITY OF CORPUS CHRISTI, TEXAS
DEPARTMENT OF ENGINEERING SERVICES
PAGE: 1 of 1
DATE: 07-19-2011
— o
44
5
Cor of
Corpus
_ = Chnsti
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: July 26, 2011
TO: Ronald L. Olson, City Manager
FROM: Pete Anaya, P.E., Director of Engineering Services
E -Mail: Peteancctexas.com Work Phone: 826-3781
Appropriation of interest and miscellaneous revenues in the City's Capital
Improvement Funds and Developer Infrastructure Fund.
PURPOSE:
A. Ordinance appropriating $45,916.95 in AIRPORT CIP interest earnings as listed in Attachment
1, Section 1, for the City's match for future FAA Grant Projects and for land acquisition for future
airport projects; Changing the FY 2010-2011 Capital Improvement Budget adopted by
Ordinance No. 028995 to increase expenditures by $45,916.95; and declaring an emergency.
B. Ordinance appropriating $490,548.91 in BOND PROCEEDS interest earnings and bonding
company settlement proceeds for Bayfront, Public Health and Safety, Library, Museum, Parks,
and Streets in the funds as listed in Attachment 1, Section 2 for the stated bond projects not yet
complete, similar projects to be approved by City Council, and for the payment of debt service;
Changing the FY 2010-2011 Capital Improvement Budget adopted by Ordinance No. 028995 to
increase expenditures by $490,548.91; and declaring an emergency.
C. Ordinance appropriating $932,533.69 in UTILITY REVENUE BOND interest earnings and
refunded proceeds from the Texas Department of Transportation as listed in Attachment 1,
Section 3 for the support of the City's approved Capital Improvement Program; Changing the FY
2010-2011 Capital Improvement Budget adopted by Ordinance No. 028995 to increase
expenditures by $932,533.69; and declaring an emergency.
D. Ordinance appropriating $358,324.41 in SPECIALTY BOND PROCEEDS interest earnings, and
from contributions and donations from Texas Military Loan Proceeds, Packery Channel Tax
Increment Financing Bonds, Sales Tax Bonds for the Seawall and Arena, and Generic Capital
Improvement Funds as listed in Attachment 1, Section 4 for the stated bond projects not yet
complete, the support of the City's approved Capital Improvement Program, specific military -
supported projects, and other related projects as determined by the Type A Board; Changing
the FY 2010-2011 Capital Improvement Budget adopted by Ordinance No. 028995 to increase
expenditures by $358,324.41; and declaring an emergency.
E. Ordinance appropriating $4,839.19 in OLDER BOND FUND (ISSUED PRIOR TO 2006) interest
earnings as listed in Attachment 1, Section 5 to expedite the closure of these funds subject to
arbitrage; Changing the FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028995 to increase expenditures by $4,839.19; and declaring an emergency.
—47—
Page 2 of 3
F. Ordinance appropriating $417,065.91 in STREET ASSESSMENTS AND STREET CLOSURES
as listed in Attachment 1, Section 6 for the repayment of approved assessment projects;
Changing the FY 2010-2011 Capital Improvement Budget adopted by Ordinance No. 028449 to
increase expenditures by $417,065.91; and declaring an emergency.
G. Ordinance appropriating $127,977.46 in interest earnings in the No. 4730 INFRASTRUCTURE
FUND as listed in Attachment 1, Section 7 from Developer securities held as the Developers'
share of deferred improvements until construction is complete, as required by the Unified
Development Code; and declaring an emergency.
BACKGROUND AND FINDINGS:
This item will appropriate all unappropriated capital proceeds accrued through May 31, 2011 in
the City's Capital Improvement Program Funds. These revenues come from a variety of sources
including interest earnings, miscellaneous revenues collected, contributions and donations, and a
reimbursement from the Texas Department of Transportation for the balance of funds not used in an
Advanced Funding Agreement. Additional funds can be used for approved projects and/or debt service
payments. This is a routine, fiscal year end fiduciary practice for governmental accounting that
facilitates the closure of older funds to comply with arbitrage regulations. Additional proceeds being
appropriated are from interest earned on developer securities deposited in the infrastructure Trust Fund
for developers' participation in deferred construction improvements of streets and roads in
neighborhood subdivisions to comply in accordance with the construction standards contained the
Unified Development Code and Urban Transportation Plan.
ALTERNATIVES:
None. All funds must be appropriated prior to their use.
OTHER CONSIDERATIONS:
None
FINANCIAL IMPACT:
o Not Applicable o Operating Expense X Revenue
X CIP
FISCAL YEAR: 2010-2011
Prior Year
(CIP Only)
Current Year
Future Years
TOTALS
Budget
$0
$0
$0
$0
Encumbered/Expended Amt.
$0
$0
$0
$0
This item
$0
$2,377,206.52
$0
$2,377,206.52
BALANCE
$0
$2,377,206.52
$0
$2,377,206.52
FUNDS (S):
H:\HOME\LYNDAS\GEN\Interest Appropriation \Agenda MemoNew.doc
_qg_
Page 3 of 3
COMMENTS: The City uses a variety of financing instruments to support the capital improvement
program. With the exception of Commercial Paper, all proceeds are invested in agency securities and
accrue interest. Periodically, the interest must be appropriated to allow for the use of these monies on
projects that were designated and approved for that particular sale.
RECOMMENDATION:
City staff recommends approval of this agenda item which must be completed on a routine basis
for proper use of City funds and proper fiscal management.
CONFORMITY TO CITY POLICY:
Conforms to statutes regarding appropriation and use of City funds.
DEPARTMENTAL CLEARANCES:
Department of Finance
LIST OF SUPPORTING DOCUMENTS:
Attachment 1: Unappropriated proceeds as of May 31, 2011.
Cc: Veronica Ocanas, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
Juan Perales, Jr., P.E., Assistant City Manager
H:\HOME\LY N DAS\GEN\Interest Appropriation \Agenda MemoNew.doc
—49—
ATTACHMENT ONE
Unappropriated Proceeds as of May 31, 2011
SECTION 1: AIRPORT
Fund #
Description
Unappropriated
_ Interest/Other
Required Uses
3020
Airport CIP Fund - Grants
33,387.30
City Match for FM Grant Projects
3020A
Airport CIP Fund Capital Reserve
678.23
City Match for FM Grant Projects
3024
Airport 2000A Revenue Bond
11,851.42
City Match for FM Grant Projects
AIRPORT CIP UNAPPROPRIATED TOTAL:
45,916.95
SECTION 2: BOND PROCEEDS
GENERAL OBLIGATION (GO) / CERTIFICATES OF OBLIGATION (CO) / TAX ANTICIPATION NOTES (TN)
Fund #
Description
Unappropriated
Interest/Other
Requirement / Staff Recommendation
3124
Bayfront 2007 GO (Bond Issue 2004)
1,440.24
Approved Bond Projects Not Complete
3125
Bayfront 2008 TN
69,357.99
Approved Bond Projects Not Complete
3126
Bayfront 2009 GO (Bond Issue 2008)
58,504.84
Approved Bond Projects Not Complete
3127
Bayfront 2009 CO (Bond Issue 2004)
13,037.05
Approved Bond Projects Not Complete
BAYFRONT UNAPPROPRIATED TOTAL:
142,340.12
3363
Public H & S 2007 GO (Bond Issue 2004)
519.48
All Projects Complete - Funds Available
3371
Health Dept 2009 GO (Bond Issue 2008)
1,249.58
Approved Bond Projects Not Complete
3191
Fire 2009 GO (Bond Issue 2008)
19,748.20
Approved Bond Projects Not Complete
3341
Police 2009 GO (Bond Issue 2008)
7,857.59
Approved Bond Projects Not Complete
3362
Landfill 2006 Certification of Obligation
1,441.94
Approved Bond Projects Not Complete
3364
Public H & S 2008 TN
3,604.59
Approved Bond Projects Not Complete
3365
Landfill 2008 Certification of Obligation
24,308.35
Approved Bond Projects Not Complete
PUBLIC H & S UNAPPROPRIATED TOTAL:
58,729.73
3225
Library 2007 GO (Bond Issue 2004)
19.42
All Projects Complete - Funds Available
3226
Library 2009 GO (Bond Issue 2008)
4,021.53
Approved Bond Projects Not Complete
LIBRARY UNAPPROPRIATED TOTAL:
4,040.95
3263
Museum 2009 GO (Bond Issue 2008)
690.10
Approved Bond Projects Not Complete
3289
Park 2005 GO (Bond Issue 2004)
1,305.44
All Projects Complete - Funds Available
3290
Park 2008 TN
10,257.46
Approved Bond Projects Not Complete
3291
Park 2009 GO (Bond Issue 2008)
10,991.46
Approved Bond Projects Not Complete
3292
Park 2010 GO (Bond Issue 2008)
23,625.12
Approved Bond Projects Not Complete
PARKS UNAPPROPRIATED TOTAL:
46,179.48
3541
Street 2005 GO (Bond Issue 2004)
10,050.56
Approved Bond Projects Not Complete
3545
Street 2008 TN
3,280.94
Approved Bond Projects Not Complete
3546
Street 2009 GO (Bond Issue 2008)
220,081.47
Approved Bond Projects Not Complete
3547
Street 2009 CO (Holly Road Overlay)
5,155.56
Approved Bond Projects Not Complete
STREETS UNAPPROPRIATED TOTAL:
238,568.53
BOND PROCEEDS UNAPPROPRIATED TOTAL:
490,548.91
-50-
ATTACHMENT1
Page 1 of 3
SECTION 3: REVENUE BONDS
Fund #
Description
Unappropriated
Interest/Other
Requirement / Staff Recommendation
3480
Storm Water CIP Fund
54,128.17
Available for Current Year CIP
3492
Storm Water 2006 Revenue Bond
389.65
Available for Current Year CIP
4525
Storm Water 2009 Revenue Bond
513.40
Available for Current Year CIP
4526
Storm Water 2009 Revenue Bond (Bond Issue 2008)
10,009.85
Available for Current Year CIP
4528
Storm Water 2010 Revenue Bond (Tax Exempt BAB)
5,043.99
Available for Current Year CIP
4529
Storm Water 2010b Revenue Bond (Taxable BAB)
24,485.52
Available for Current Year CIP
STORM WATER CIP UNAPPROPRIATED TOTAL:
94,570.58
4551
Gas 2009 Revenue Bond (Bond Issue 2008)
1,136.44
Available for Current Year CIP
4554
Gas 2010b Revenue Bond (Taxable BAB)
359.42
Available for Current Year CIP
GAS CIP UNAPPROPRIATED TOTAL:
1,495.86
4080
Water CIP Fund
773,024.48
Available for Current Year CIP
4090
Water 2006 Revenue Bond
0.15
Available for Current Year CIP
4475
Water 2009 Revenue Bond
217.06
Available for Current Year CIP
4476
Water 2009 Revenue Bond (Bond Issue 2008)
4,219.42
Available for Current Year CIP
4478
Water 2010 Revenue Bond (Tax Exempt BAB)
4,306.40
Available for Current Year CIP
4479
Water 2010b Revenue Bond (Taxable BAB)
18,249.65
Available for Current Year CIP
WATER CIP UNAPPROPRIATED TOTAL:
800,017.16
3430
Wastewater CIP Fund
5,484.18
Available for Current Year CIP
4250
Wastewater 2006 Revenue Bond
228.58
Available for Current Year CIP
4500
Wastewater 2009 Revenue Bond
113.42
Available for Current Year CIP
4501
Wastewater 2009 Revenue Bond (Bond Issue 2008)
1,576.24
Available for Current Year CIP
4503
Wastewater 2010 Revenue Bond (Tax Exempt BAB)
7,014.71
Available for Current Year CIP
4504
Wastewater 2010b Revenue Bond (Taxable BAB)
21,736.26
Available for Current Year CIP
4510
Wastewater Capital Reserves
296.70
Available for Current Year CIP
WASTEWATER CIP UNAPPROPRIATED TOTAL:
36,450.09
REVENUE BONDS CIP UNAPPROPRIATED TOTAL:
932,533.69
SECTION 4: SPECIALITY BOND PROCEEDS
TEXAS MILITARY LOAN (TML) / TAX INCREMENT FINANCING (TIF)
SALES TAX SUPPORTED BONDS / GENERIC CAPITAL IMPROVEMENT PROGRAM FUNDS (CIP)
Fund #
Description
Unappropriated
Interest/Other
Requirement / Staff Recommendation
3489
Storm Water 2007 TML (North Port)
8,014.62
Approved Bond Project Not Complete
4086
Water 2007 TML (North Port)
283.80
Approved Bond Project Not Complete
4246
Wastewater 2007 TML (North Port)
1,239.17
Approved Bond Project Not Complete
3542
Street 2007 TML (North Port)
3,088.75
Approved Bond Project Not Complete
3543
Street 2007 TML (NAS AICUZ)
5,103.33
Restricted Fund for Military Projects
TML UNAPPROPRIATED TOTAL:
17,729.67
3270
Seawall Bond Fund
876.22
Administered by Type A Board
3271
Seawall System CIP Fund
2,353.98
Administered by Type A Board
SALES TAX BOND UNAPPROPRIATED TOTAL:
3,230.20
3278
Packery Channel TIF Fund
1,339.34
Approved TIF Project Not Complete
-51-
ATTACHMENT1
Page 2 of 3
SECTION 4: SPECIALITY BOND PROCEEDS (continued)
3210
Library CIP Fund
4,480.95
Available for Current Year CIP
3280
Park CIP Fund
2,873.47
Available for Current Year CIP
3530
Street CIP Fund .
328,200.39
Available for Current Year CIP
3600
Gas CIP Fund
470.39
Available for Current Year CIP
GENERIC CIP FUND UNAPPROPRIATED TOTAL:
336,025.20
SPECIALITY BOND UNAPPROPRIATED TOTAL:
358,324.41
SECTION 5: OLDER BOND FUNDS (ISSUED PRIOR TO 2006)
Fund #
Description
Unappropriated
Interest/Other
Requirement / Staff Recommendation
3359
Public Health & Safety 2004 CO
186.53
Older Fund Recommend Closing
3361
Public H & S 2005 Certificate of Obligation
804.26
Older Fund Recommend Closing
4084
Water 2002 Revenue Bond
246.56
Older Fund Recommend Closing
4242
Wastewater 1995 State Revolving Fund
3,601.84
Older Fund Recommend Closing
OLDER BOND FUNDS UNAPPROPRIATED TOTAL:
4,839.19
SECTION
6: OTHER UNAPPROPRIATED FUNDS
Fund #
Description
Unappropriated
Interest/Other
Requirement / Staff Recommendation
Street Assessments
115,838.66
Approved Assessment Projects
Street Closures
301,227.25
Approved Assessment Projects
OTHER UNAPPROPRIATED FUNDS TOTAL:
417,065.91
SECTION 7: INFRASTRUCTURE FUND
Acct #
Description
Unappropriated
Interest/Other
Requirement / Staff Recommendation
330859
Acushnet Drive
_ 2,651.78
Approved Deferred Street Construction
330332
Cimarron Park
8,792.60
Approved Deferred Street Construction
330928
Country Creek #5
9,008.45
Approved Deferred Street Construction
330885
Country Creek #3
6,745.12
Approved Deferred Street Construction
330257
Coves @ Lago Vista
3,204.30
Approved Deferred Street Construction
330857
Cullen Place
5,408.66
Approved Deferred Street Construction
330765
Drainage Channel 31
228.29
Approved Deferred Street Construction
330785
Dunbarton Oaks
33,041.51
Approved Deferred Street Construction
330913
Homedale Addition
3,199.32
Approved Deferred Street Construction
330854
Kitty Hawk
709.13
Approved Deferred Street Construction
341040
Legends of Diamante
361.58
Approved Deferred Street Construction
330889
Mariposa Subdivision
15,993.39
Approved Deferred Street Construction
330259
Navigation Pointe
9,748.80
Approved Deferred Street Construction
330835
Oso Pkwy
1,866.53
Approved Deferred Street Construction
330806
Rancho Las Brisas
181.40
Approved Deferred Street Construction
330853
Rancho Vista
763.71
Approved Deferred Street Construction
341040
RRAH Corpus Christi
217.82
Approved Deferred Street Construction
330400
Saratoga Center Block 1
2,904.49
Approved Deferred Street Construction
330925
Scogin Creek, Unit 5
11,917.17
Approved Deferred Street Construction
330903
Shoreline Oaks
6,291.12
Approved Deferred Street Construction
330388
St. Maria Stella Subdivision
2,747.90
_ Approved Deferred Street Construction
330204
Traffic Congestion
1,470.75
Approved Deferred Street Construction
330905
University Drive
523.64
Approved Deferred Street Construction
INFRASTRUCTURE FUND TOTAL:
127,977.46
-52-
ATTACHMENT 1
Page 3 of 3
Page 1 of 2
ORDINANCE
APPROPRIATING $45,916.95 IN AIRPORT CIP INTEREST EARNINGS
AS LISTED IN ATTACHMENT 1, SECTION 1, FOR THE CITY'S MATCH
FOR FUTURE FAA GRANT PROJECTS AND FOR LAND ACQUISITION
FOR FUTURE AIRPORT PROJECTS; CHANGING THE FY 2010-2011
CAPITAL IMPROVEMENT BUDGET ADOPTED BY ORDINANCE NO.
028995 TO INCREASE EXPENDITURES BY $45,916.95; AND
DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $45,916.95 in Airport CIP interest earnings as listed in
Attachment 1, Section 1, is appropriated for the City's match for future FAA Grant Projects
and for land acquisition for future airport projects.
SECTION 2. The FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028995 is changed to increase expenditures by an amount of $45,916.95.
SECTION 3. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
APPROVED AS TO FORM: 1 -Jul-11
Veronica Ocanas
Assistant City Attorney
For City Attorney
072611 ORD APP $45,916.95 in AIRPORT CIP
—53—
Joe Adame
Mayor
Page 2 of 2
Corpus Christi, Texas
day of 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $45,916.95 in AIRPORT CIP
—54—
Page 1 of 2
ORDINANCE
APPROPRIATING $490,548.91 IN BOND PROCEEDS INTEREST
EARNINGS AND BONDING COMPANY SETTLEMENT PROCEEDS FOR
BAYFRONT, PUBLIC HEALTH AND SAFETY, LIBRARY, MUSEUM,
PARKS, AND STREETS IN THE FUNDS AS LISTED IN ATTACHMENT
1, SECTION 2 FOR THE STATED BOND PROJECTS NOT YET
COMPLETE, SIMILAR PROJECTS TO BE APPROVED BY CITY
COUNCIL, AND FOR THE PAYMENT OF DEBT SERVICE; CHANGING
THE FY 2010-2011 CAPITAL IMPROVEMENT BUDGET ADOPTED BY
ORDINANCE NO. 028995 TO INCREASE EXPENDITURES BY
$490,548.91; AND DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $490,548.91 in Bond Proceeds interest earnings and bonding
company settlement proceeds for Bayfront, Public Health and Safety, Library, Museum,
Parks, and Streets in the funds as listed in Attachment 1, Section 2 is appropriated for the
stated bond projects not yet complete, similar projects to be approved by City Council,
and for the payment of debt service.
SECTION 2. The FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028995 is changed to increase expenditures by $490,548.91.
SECTION 3. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
APPROVED,AS T FORM: 14 -Jul -11
Veronica Ocanas
Assistant City Attorney
For City Attorney
072611 ORD APP $490,548.91 in BOND PROCEEDS
—55—
Joe Adame
Mayor
Page 2 of 2
Corpus Christi, Texas
day of , 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $490,548.91 in BOND PROCEEDS
—56—
Page 1 of 2
ORDINANCE
APPROPRIATING $932,533.69 IN UTILITY REVENUE BOND INTEREST
EARNINGS AND REFUNDED PROCEEDS FROM THE TEXAS
DEPARTMENT OF TRANSPORTATION AS LISTED IN ATTACHMENT 1,
SECTION 3 FOR THE SUPPORT OF THE CITY'S APPROVED CAPITAL
IMPROVEMENT PROGRAM; CHANGING THE FY 2010-2011 CAPITAL
IMPROVEMENT BUDGET ADOPTED BY ORDINANCE NO. 028995 TO
INCREASE EXPENDITURES BY $932,533.69; AND DECLARING AN
EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $932,533.69 in Utility Revenue Bonds interest earnings and
refunded proceeds from the Texas Department of Transportation as listed in Attachment
1, Section 3, is appropriated for the support of the City's approved Capital Improvement
Program.
SECTION 2. The FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028995 is changed to increase expenditures by $932,533.69.
SECTION 3. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011,
ATTEST:
Armando Chapa
City Secretary
APPROVED AS TOFO�-Jul-11
Veronica Ocanas
Assistant City Attorney
For City Attorney
072611 ORD APP $932,533.69 in Utility Revenue Bonds
—57—
CITY OF CORPUS CHRISTI
Joe Adame
Mayor
Page2of2
Corpus Christi, Texas
day of 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $932,533.69 in Utility Revenue Bonds
—58—
Page 1 of 2
ORDINANCE
APPROPRIATING $358,324.41 IN SPECIALTY BOND PROCEEDS
INTEREST EARNINGS, AND FROM CONTRIBUTIONS AND
DONATIONS FROM TEXAS MILITARY LOAN PROCEEDS, PACKERY
CHANNEL TAX INCREMENT FINANCING BONDS, SALES TAX BONDS
FOR THE SEAWALL AND ARENA, AND GENERIC CAPITAL
IMPROVEMENT FUNDS AS LISTED IN ATTACHMENT 1, SECTION 4
FOR THE STATED BOND PROJECTS NOT YET COMPLETE, THE
SUPPORT OF THE CITY'S APPROVED CAPITAL IMPROVEMENT
PROGRAM, SPECIFIC MILITARY -SUPPORTED PROJECTS, AND
OTHER RELATED PROJECTS AS DETERMINED BY THE TYPE A
BOARD; CHANGING THE FY 2010-2011 CAPITAL IMPROVEMENT
BUDGET ADOPTED BY ORDINANCE NO. 028995 TO INCREASE
EXPENDITURES BY $358,324.41; AND DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $358,324.41 in Specialty Bond Proceeds interest earnings,
and from contributions and donations from Texas Military Loan Proceeds, Packery
Channel Tax Increment Financing Bonds, Sales Tax Bonds for the Seawall and Arena,
and Generic Capital Improvement Funds as listed in Attachment 1, Section 4, is
appropriated for the stated bond projects not yet complete, the support of the City's
approved Capital Improvement Program, specific military -supported projects, and other
related projects as determined by the Type A Board.
SECTION 2. The FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028995 is changed to increase expenditures by $358,324.41.
SECTION 3. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011.
ATTEST:
Armando Chapa
City Secretary
AP,eR:OVEDAS�Ny 14 -Jul -11
Veronica Ocanas
Assistant City Attorney
For City Attorney
072611 ORD APP $358,324.41 in Specialty Bond Proceeds
—59—
CITY OF CORPUS CHRISTI
Joe Adame
Mayor
Page 2 of 2
Corpus Christi, Texas
day of 2011
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance an
emergency exists requiring suspension of the Charter rule as to consideration and voting
upon ordinances at two regular meetings: 1/we, therefore, request that you suspend said
Charter rule and pass this ordinance finally on the date it is introduced, or at the present
meeting of the City Council.
Respectfully, Respectfully,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $358,324.41 in Specialty Bond Proceeds
-60-
Page 1 of 2
ORDINANCE
APPROPRIATING $4,839.19 IN OLDER BOND FUND (ISSUED PRIOR
TO 2006) INTEREST EARNINGS AS LISTED IN ATTACHMENT 1,
SECTION 5 TO EXPEDITE THE CLOSURE OF SAID FUNDS SUBJECT
TO ARBITRAGE; CHANGING THE FY 2010-2011 CAPITAL
IMPROVEMENT BUDGET ADOPTED BY ORDINANCE NO. 028995 TO
INCREASE EXPENDITURES BY $4,839.19; AND DECLARING AN
EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $4,839.19 in Older Bond Fund interest earnings (issued prior
to 2006) as listed in Attachment 1, Section 5, is appropriated to expedite the closure of
said funds subject to arbitrage.
SECTION 2. The FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028995 is changed to increase expenditures by $4,839.19.
SECTION 3. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011.
ATTEST:
Armando Chapa
City Secretary
APPROVED AS TOFORM: 14 -Jul -11
Veronica Ocanas
Assistant City Attorney
For City Attorney
072611 ORD APP $4,839.19 in Older Bond Fund
-61-
CITY OF CORPUS CHRISTI
Joe Adame
Mayor
Page 2 of 2
Corpus Christi, Texas
_ day of , 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $4,839.19 in Older Bond Fund
—62—
Page 1 of 2
ORDINANCE
APPROPRIATING $417,065.91 IN STREET ASSESSMENTS AND
STREET CLOSURES AS LISTED IN ATTACHMENT 1, SECTION 6 FOR
THE REPAYMENT OF APPROVED ASSESSMENT PROJECTS;
CHANGING THE FY 2010-2011 CAPITAL IMPROVEMENT BUDGET
ADOPTED BY ORDINANCE NO. 028449 TO INCREASE
EXPENDITURES BY $417,065.91; AND DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $417,065.91 in Street Assessments and Street Closures, as
listed in Attachment 1, Section 6, is appropriated for the repayment of approved
assessment projects.
SECTION 2. The FY 2010-2011 Capital Improvement Budget adopted by Ordinance No.
028449 is changed to increase expenditures by $417,065.91.
SECTION 3. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011.
ATTEST:
Armando Chapa
City Secretary
APPROVED AS TO F RM: 14 -Jul -11
Veronica Ocanas
Assistant City Attorney
For City Attorney
CITY OF CORPUS CHRISTI
Joe Adame
Mayor
072611 ORD APP $417,065.91 in Street Assessments and Street Closures
-63-
Page 2 of 2
Corpus Christi, Texas
day of , 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $417,065.91 in Street Assessments and Street Closures
—64—
Page 1 of 2
ORDINANCE
APPROPRIATING $127,977.46 IN INTEREST EARNINGS IN THE NO.
4730 INFRASTRUCTURE FUND AS LISTED IN ATTACHMENT 1,
SECTION 7 FROM DEVELOPER SECURITIES HELD AS THE
DEVELOPERS' SHARE OF DEFERRED IMPROVEMENTS UNTIL
CONSTRUCTION IS COMPLETE, AS REQUIRED BY THE UNIFIED
DEVELOPMENT CODE; AND DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. An amount of $127,977.46 in interest earnings in the No. 4730 Infrastructure
Fund, as listed in Attachment 1, Section 7 from developer securities, is appropriated and
held as the developers' share of deferred improvements until construction is complete, as
required by the Unified Development Code.
SECTION 2. Upon written request of the Mayor or five Council members, copy attached,
the City Council (1) finds and declares an emergency due to the need for immediate
action necessary for the efficient and effective administration of City affairs and (2)
suspends the Charter rule that requires consideration of and voting upon ordinances at
two regular meetings so that this ordinance is passed and takes effect upon first reading
as an emergency measure on this the 26th day of July, 2011.
ATTEST:
CITY OF CORPUS CHRISTI
Armando Chapa Joe Adame
City Secretary Mayor
APPROVED AS TA FORM: 14 -Jul -11
Veronica Ocanas
Assistant City Attorney
For City Attorney
072611 ORD APP $127,977.46 in No. 4730 Infrastructure Fund
-65-
Page 2 of 2
Corpus Christi, Texas
day of 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla G. Leal
John E. Marez
Nelda Martinez
Mark Scott
David Loeb
072611 ORD APP $127,977.46 in No. 4730 Infrastructure Fund
—66—
6
Cous
_ = Christi
wy
AGENDA MEMORANDUM
for the City Council Meeting of July 19, 2011
DATE: July 7, 2011
TO: Ronald L. Olson, City Manager
THROUGH: Rudy Garza, Interim Assistant City Manag
rudyga@cctexas.com
(361) 826-3082
FROM: Mike Culbertson —', , t(.
Corpus Christi Regional jEcbhomic Development Corporation
m culbertsoneccredc. com
(361) 882-7448
Type A Grant for Del Mar College Internship Program
PURPOSE:
Resolution Approving A Small Business Incentives Agreement Between The Corpus Christi
Business And Job Development Corporation And Del Mar College, Which Provides Grants Of Up To
One Hundred Seventy Three Thousand Two Hundred Twenty Three Dollars ($173,223), For The Intern
Program For Small Businesses And Authorizing The City Manager, Or Designee, To Execute A Small
Business Incentive Project Support Agreement With The Corpus Christi Business And Job
Development Corporation Regarding Implementation And Administration Of The Del Mar College Intern
Program Small Business Incentive Agreement.
BACKGROUND AND FINDINGS:
Del Mar College has a program where students can work for a local company as an intern. The
local company will pay minimum wage while the Type A grant will match the wage. This encourages
companies to hire interns, it allows the student to get real work experience, and has a goal to create
new jobs. The Type A Board has funded this program since 2007. They are requesting $173,223 to
fund 95 intern positions.
ALTERNATIVES:
Some local companies do offer internships but these are large companies and they recruit
nationwide. This allows local small companies to use interns.
OTHER CONSIDERATIONS:
None
—69—
FINANCIAL IMPACT:
c Not Applicable
X Operating Expense o Revenue
❑ CIP
Page 2 of 2
FISCAL YEAR: 2010 - 2011
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
0
Encumbered/Expended
amount as of 06/30/2011
0
This item
0
(173,223.00)
(173,223.00)
BALANCE
0
0
(173,223.00)
(173,223.00)
FUND: Type A
Comments: Funds will be expended in the next fiscal year, FY 2012.
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to enter into a five year
Type A agreement.
CONFORMITY TO CITY POLICY:
This project is consistent with the City's stated goals of promoting economic development as
stated in the City Objectives.
EMERGENCY / NON -EMERGENCY:
Non -emergency
DEPARTMENTAL CLEARANCES:
Legal Department
Finance Department
LIST OF SUPPORTING DOCUMENTS:
Del Mar College Type A Agreement
Resolution
Agreement between the City and the Business and Job Development Corporation
Cc: Jay Reining, First Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
—70—
Page 1 of 3
RESOLUTION
APPROVING A SMALL BUSINESS INCENTIVES AGREEMENT
BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION AND DEL MAR COLLEGE,
WHICH PROVIDES A GRANT OF UP TO $173,223.00 FOR AN
INTERN PROGRAM TO SUPPORT SMALL BUSINESSES AND
AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO
EXECUTE A PROJECT SUPPORT AGREEMENT WITH THE
CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION REGARDING IMPLEMENTATION AND
ADMINISTRATION OF THE DEL MAR SMALL BUSINESS
INCENTIVES AGREEMENT
WHEREAS, the Corpus Christi Business and Job Development Corporation
("Type A Board") has budgeted funds to assist small businesses and promote
new jobs in Corpus Christi, Texas.
WHEREAS, there is a need for a small business incentives project support
agreement between the City of Corpus Christi ("City") and the Type A Board for
the implementation and administration of the small business incentives
- agreement with Del Mar College ("Del Mar") for a intern program to support small
businesses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That small business incentives agreement for an intern program to
support small businesses between the Type A Board and Del Mar, which is
attached to this resolution as Exhibit A, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a
project support agreement between the City and Type A Board for the
implementation and administration of the small business incentives agreement
with Del Mar for a intern program to support small businesses, which is attached
to this resolution as Exhibit B.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
RES-DelMar Intern-07112011.docx
—71—
Joe Adame
Mayor
APPROVED as to form: July , 2011
R. Ja eir>fig
Fir Assistant City Attorney
For the City Attorney
RES-DelMar Intern-07112011.docx
—72—
Page 2 of 3
Corpus Christi, Texas
of , 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
RES-DelMar Intern-07112011.de=
—73—
Page 3 of 3
SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION AND DEL MAR COLLEGE
FOR AN INTERN PROGRAM TO SUPPORT SMALL BUSINESSES
This Small Business Incentives Agreement for ("Agreement") is entered into between
the Corpus Christi Business and Job Development Corporation ("Corporation") and Del
Mar College, a Texas institution of higher education ("Del Mar").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City")
passed Proposition 2, New and Expanded Business Enterprises, which authorized the
adoption of a sales and use tax for the promotion and development of new and
expanded business enterprises at the rate of one-eighth of one percent to be imposed
for 15 years;
WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corpus Christi Business and Job
Development Corporation Board;
WHEREAS, the Corpus Christi Business and Job Development Corporation exists for
the purposes of encouraging and assisting entities in the creation of jobs for the citizens
of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Small business
incentives;
WHEREAS, Section 501.073, Texas Local Government Code, requires the City Council
to approve all programs and expenditures of the corporation;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Small business incentives on September 18, 2007;
WHEREAS, Del Mar has requested business development funds from the Board to
assist small businesses by providing access to students, who will serve as interns in
professional level positions;
WHEREAS, the small businesses will pay the student interns minimum wage (currently
$7.25 per hour) and Del Mar will match the small business contribution.
Page 1 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—74—
WHEREAS, the interns will be selected based on the needs of the small businesses
with the goal of providing the businesses with resources that make the businesses more
effective and provide growth opportunities;
WHEREAS, the primary goal of the program is to provide support to small businesses in
Corpus Christi that will encourage growth, retention, economic development, and job
creation;
WHEREAS, the goal of the project is the creation of 1 new full time job for every 10
internship positions funded (a 10% new job "return on investment");
WHEREAS, a secondary benefit of the small business intern program is providing
students real-world experience, while they are making a living wage without working
extended hours and developing potential full-time employment opportunities following
graduation;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas that business development funds be provided to Del Mar, through
this Agreement with Del Mar, to be used by Del Mar to assist small businesses by
providing access to students, who will serve as interns in professional level positions.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and Del Mar agree as follows:
1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement.
2. Term.
a. The term of this Agreement is for one year from August 1, 2011, through
August 16, 2012.
b. This Agreement may be extended at the option of the Corporation for up to
four additional one year terms, contingent upon annual appropriation of funds
and approval of the City Council.
c. If this Agreement is extended for subsequent period, this Agreement may be
amended by adoption of a revised Schedule A, which is attached to and
incorporated into this Agreement.
3. Grant.
a. The Corporation will grant Del Mar an incentive of up to One Hundred
Seventy Three Thousand Two Hundred Twenty Three Dollars ($173,223.00),
which must be used to fund one half of the salary of up to a total of 93 interns
during the Fall Semester of 2011, Spring Semester of 2012, and Summer
Session in 2012, and the entire salary on two interns hired to help administer the
program during the Fall and Spring Semesters and Summer Session. The
Page 2 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—75—
interns will be paid twice the minimum wage, while participating in Del Mar's
Small Business Employer Intern Program.
b. The Corporation's grant conditioned upon Del Mar's successful completion of
the terms of this Agreement, including, but not limited to, the performance
requirements and conditions precedent in Schedule A.
c. The Corporation's grant shall be paid in monthly installments based upon
evidence of the amount paid by Del Mar to the small business employers during
the prior month.
4. Del Mar's Duties and Responsibilities.
a. Del Mar shall provide administrative oversight and direct supervision for the
placement of interns in the Del Mar's Small Business Employer Intern Program.
b. Del Mar shall create and maintain not less than two part-time intern (2)
employment positions to assist in the Small Business Employer Intern Program in
Corpus Christi, Nueces County, Texas, during the term of this Agreement. The
intern must be paid twice the minimum wage, which is scheduled to be $7.25 per
hour.
c. Del Mar shall place, with small businesses in Corpus Christi, up to the total
number of interns specified in Schedule A, during any the academic year.
(1) Since the primary goal of the Del Mar's Small Business Employer
Intern Program is to provide support to small businesses in Corpus Christi
that will encourage growth, retention, economic development, and job
creation, placements must be based on the needs of the small business
with the goal of providing the business with resources that make the
business more effective and provide growth opportunities for the
businesses.
(2) For the purpose of this section a small business may include a
chambers of commerce, non-profit organizations, and other entity that will
use the intern to assist existing, start-up, and home based small
businesses in the City; recruit new small business to the City; assist the
expansion of existing small businesses in the City; help entrepreneurs
create start-up businesses; or help the owners and managers of small
businesses develop their businesses.
d. Del Mar shall ensure that the small business employer of each intern pays the
student intern the minimum wage, and Del Mar shall match the small business
employer's payments to the interns.
e. Del Mar shall try to place the interns for 20 hours per week and 12 weeks per
semester or summer session.
Page 3 of 11
SMALL BUSINESS INCENTIVEAGREEMENT-DELMAR Interns 2011.docx
—76—
f. Del Mar shall work with the small businesses that receive interns under the
program to encourage the creation of permanent full time jobs for the interns or
similarly qualified individuals.
5. Job Creation Qualification.
a. In order to count as a created job under this Agreement, the job must pay
wages as required by Section 38(b) of the Development Corporation Act of 1979,
as amended, which is the median wage of the occupation in the Corpus Christi
MSA as determined by Texas Workforce Commission's Texas Industry Profiles
report.
b. A full-time permanent job is one that provides at least 2,080 hours annually.
c. Del Mar agrees to confirm and document to the Corporation that each job
created as a result of funding provided by this Agreement is maintained
throughout the term of this Agreement.
d. Del Mar agrees to provide Corporation with a sworn certificate by authorized
representative of each shall business assisted under this Agreement certifying
the number of full-time permanent employees employed by the business assisted
through the Intern Program.
e. Del Mar shall ensure that the Corporation is allowed reasonable access to
personnel records of the businesses assisted under this Agreement.
6. Reports and Monitoring.
a. Del Mar shall provide a report at the end of each semester or summer session
certifying the status of compliance through the life of the Agreement.
Documentation for jobs may be in the form of quarterly IRS 941 returns, Del Mar
employer Quarterly Reports, or employee rosters that show the hours worked
and the positions filled, and such other reports as may reasonably be required.
b. Del Mar, during normal working hours shall allow the Corporation and its
designee, City of Corpus Christi Economic Development Department, reasonable
access to Del Mar's employment records and books, to verify employment and all
other relevant records related to each of the other economic development
considerations and incentives, as stated in this Agreement, but the confidentiality
of the records and information must be maintained by Corporation and its
designee, unless such records and information shall be required by a court order,
a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney
General.
7. Warranties. Del Mar warrants and represents to Corporation the following:
a. Del Mar has the authority to enter into and perform, and will perform, the
terms of this Agreement.
Page 4 of 11
SMALL BUSINESS INCENTIVEAGREEMENT-DELMAR Interns 2011.docx
—77—
b. The individual executing this Agreement on behalf of Del Mar is duly
authorized to execute this Agreement on behalf of Del Mar.
c. No litigation or governmental proceeding is pending or, to the knowledge of
Del Mar or Del Mar's officers, threatened against or affecting Del Mar that may
result in any material adverse change in Del Mar's business, properties, or
operations. No consent, approval, or authorization of or registration or
declaration within any governmental authority is required in connection with the
execution of this Agreement or the transactions contemplated by this Agreement.
d. No certificate, statement, or information provided by Del Mar to Corporation or
the City of Corpus Christi in connection with any transaction contemplated by this
Agreement, contains any untrue statements or fails to state any fact necessary to
keep the statements contained in the certificate, statement, or information from
being misleading.
e. To the best of its knowledge, Del Mar has acquired and maintained all
necessary rights, licenses, permits, and authority to carry out this Agreement,
and will continue to use its best efforts to maintain all necessary rights, licenses,
permits, and authority.
f. The funds granted through this Agreement must be utilized solely for the
purpose of offsetting the cost of creating and maintaining the interns for Del
Mar's Small Business Employer Intern Program.
g. Del Mar shall complete the project required by this Agreement, and shall
provide and staff the required employment positions, investment, and other
economic development considerations described in this Agreement.
h. Del Mar shall timely and fully comply with all of the terms and conditions of
this Agreement.
i. Del Mar has reviewed a copy of the Subtitle C1, Title 12, Texas Local
Government Code, which governs development corporations and is available on
the State's website, and acknowledges that the funds granted in this Agreement
must be utilized solely for purposes authorized under State law and by the terms
of this Agreement.
j. In the event it is determined by Corporation or City of Corpus Christi that funds
provided under this Agreement were not used as authorized by State law, then
Del Mar shall repay the funds to the Corporation within 30 days of written notice
requesting reimbursement.
k. If an audit determines that the funds were not used for authorized purposes ,
Del Mar agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
Page 5 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—78—
I. There are no bankruptcy proceedings currently pending concerning Del Mar,
nor are any such proceedings contemplated by Del Mar, as of the date of
execution of this Agreement by Del Mar.
m. Del Mar shall provide information, reports, or statements respecting its
business operations and financial condition as Corporation may reasonably
request from time to time.
8. All representations, warranties, covenants, and agreements of the parties, as well as
any rights and benefits of the parties pertaining to the transaction contemplated by this
Agreement, shall survive the original execution date of this Agreement.
9. Compliance with Laws. Del Mar shall observe and obey all applicable laws,
ordinances, regulations, and rules of the Federal, State, county, and city governments.
10. Non -Discrimination. Del Mar covenants and agrees that Del Mar will not
discriminate nor permit discrimination against any person or group of persons, with
regard to employment and the provision of services at, on, or in the Facility, on the
grounds of race, religion, national origin, marital status, sex, age, disability, or in any
manner prohibited by the laws of the United States or the State of Texas.
11. Force Majeure. If the Corporation or Del Mar are prevented, wholly or in part, from
fulfilling its obligations under this Agreement by reason of any act of God, unavoidable
accident, acts of enemies, fires, floods, governmental restraint or regulation, other
causes of force majeure, or by reason of circumstances beyond its control, then the
obligations of the Corporation or Del Mar are temporarily suspended during continuation
of the force majeure. If either party's obligation is affected by any of the causes of force
majeure, the party affected shall promptly notify the other party in writing, giving full
particulars of the force majeure as soon as possible after the occurrence of the cause or
causes relied upon.
12. Assignment. Del Mar may not assign all or any part of its rights, privileges, or
duties under this Agreement without the prior written approval of the Corporation and
City. Any attempted assignment without approval is void, and constitutes a breach of
this Agreement.
13. Indemnity. To the extent authorized by law, Del Mar covenants to
fully indemnify, save, and hold harmless the Corporation, the City,
their respective officers, employees, and agents ("Indemnitees")
against all liability, damage, loss, claims demands, and actions of any
kind on account of personal injuries (including, without limiting the
foregoing, workers' compensation and death claims), or property loss
or damage of any kind, which arise out of or are in any manner
connected with, or are claimed to arise out of or be in any manner
connected with Del Mar activities conducted under or incidental to
this Agreement, including any injury, loss or damage caused by the
Page 6 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—79—
sole or contributory negligence of any or all of the Indemnitees. Del
Mar must, at its own expense, investigate all those claims and
demands, attend to their settlement or other disposition, defend all
actions based on those claims and demands with counsel
satisfactory to Indemnitees, and pay all charges of attorneys and all
other cost and expenses of any kind arising from the liability,
damage, loss, claims, demands, or actions.
14. Events of Default. The following events constitute a default of this Agreement:
a. Failure of Del Mar to timely, fully, and completely comply with any one or
more of the requirements, obligations, duties, terms, conditions, or warranties of
this Agreement.
b. The Corporation or City determines that any representation or warranty on
behalf of Del Mar contained in this Agreement or in any financial statement,
certificate, report, or opinion submitted to the Corporation in connection with this
Agreement was incorrect or misleading in any material respect when made;
15. Notice of Default. Should the Corporation or City determine that Del Mar is in
default according to the terms of this Agreement, the Corporation or City shall notify Del
Mar in writing of the event of default and provide 60 days from the date of the notice
("Cure Period") for Del Mar to cure the event of default.
16. Results of Uncured Default. After exhausting good faith attempts to address any
default during the cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of Del Mar, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period.
a. Del Mar shall immediately repay all funds paid by Corporation under this
Agreement.
b. Del Mar shall pay Corporation reasonable attorney fees and costs of court to
collect amounts due to Corporation.
c. The Corporation shall have no further obligations to Del Mar under this
Agreement.
d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
17. No Waiver.
Page 7 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—80—
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, constitutes a waiver of any subsequent breach of
the covenant or condition of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, justifies or authorizes the nonobservance on any
other occasion of the covenant or condition or any other covenant or condition of
this Agreement.
c. Any waiver or indulgence of Del Mar default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time Del Mar is in default in any of its
conditions or covenants of this Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Agreement on account of the default.
18. Limitation on Corporation's Liability. Del Mar specifically agrees that Corporation
shall only be liable to Del Mar for the actual amount of the money grants to be conveyed
to Del Mar, and shall not be liable to Del Mar for any actual or consequential damages,
direct or indirect, interest, attorney fees, or cost of court for any act of default by
Corporation under the terms of this Agreement.
a. Payment by Corporation is strictly limited to those funds so allocated,
budgeted, and collected solely during the grant term of this Agreement, being
August 1, 2011, through August 16, 2012.
b. Corporation will use its best efforts to anticipate economic conditions and to
budget accordingly.
c. However, it is further understood and agreed that, should the actual total sales
tax revenue collected for any one year be less than the total amount of grants to
be paid to all contracting parties with Corporation for that year, then in that event,
all contracting parties shall receive only their pro rata share of the available sales
tax revenue for that year, less Corporation's customary and usual costs and
expenses, as compared to each contracting parties' grant amount for that year,
and Corporation shall not be liable to for any deficiency at that time or at any time
in the future. In this event, Corporation will provide all supporting documentation,
as requested.
d. Payments to be made shall also require a written request from Del Mar to be
accompanied by all necessary supporting documentation.
Page 8 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—81—
19. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
Del Mar:
Del Mar College
Attn: President
78404101 Baldwin
Corpus Christi, Texas 78404
Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn.: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided above.
20. Incorporation of Other Documents. The Corpus Christi Business and Job
Development Corporation Guidelines and Criteria for Granting Small business
incentives ("Corporation Guidelines"), as amended, are incorporated into this
Agreement.
21. Amendments or Modifications. No amendments or modifications to this Agreement
may be made, nor any provision waived, unless in writing signed by a person duly
authorized to sign Agreements on behalf of each party.
22. Relationship of Parties. In performing this Agreement, both the Corporation and
Del Mar will act in an individual capacity, and not as agents, representatives,
employees, employers, partners, joint -venturers, or associates of one another. The
employees or agents of either party may not be, nor be construed to be, the employees
or agents of the other party for any purpose.
Page 9 of 11
SMALL BUSINESS INCENTIVEAGREEMENT-DELMAR Interns 2011.docx
—82—
23. Captions. The captions in this Agreement are for convenience only and are not a
part of this Agreement. The captions do not in any way limit or amplify the terms and
provisions of this Agreement.
24. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Agreement or the application of this Agreement to any
person or circumstance is, to any extent, held illegal, invalid, or unenforceable
under present or future law or by a final judgment of a court of competent
jurisdiction, then the remainder of this Agreement, or the application of the term
or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it
is the definite intent of the parties to this Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Agreement be
given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Agreement, then the remainder of this Agreement is not affected by the law, and
in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or
provision, as similar in terms to the illegal, invalid, or unenforceable clause or
provision as may be possible and be legal, valid, and enforceable, will be added
to this Agreement automatically.
25. Venue. Venue for any legal action related to this Agreement is in Nueces County,
Texas.
26. Sole Agreement. This Agreement constitutes the sole Agreement between
Corporation and Del Mar. Any prior Agreements, promises, negotiations, or
representations, verbal or otherwise, not expressly stated in this Agreement, are of no
force and effect.
27. Survival of Terms of Agreement and Obligations of Parties. The terms of this
Agreement and the following obligations of the parties survive the termination of this
Agreement:
a. Payment by the Corporation of the portion of the grant for salaries of interns
during the 2012 summer session under Section 5.c.
b. Del Mar's record keeping and reporting requirements under Sections 4, 5, and
6.
c. Del Mar's duty to repay funds not used for an authorized purpose under
Section 7.
Page 10 of 11
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—83—
Corpus Christi Business & Job Development Corporation
By:
Date:
Eloy Salazar
Chairperson
Attest:
By:
Armando Chapa
Assistant Secretary
Del Mar College
By:
,1
Mark Escamilla, Ph.D
President
Date: 7_ 6 -f/
THE STATE OF TEXAS
COUNTY OF NUECES
/44
This instrument was acknowledged before me on did to 2011, by
Mark Escamilla, Ph.D, for Del Mar College, a political division of the State of Texas,
on behalf of the college district.
tary Public
State of Texas
.• xrruw
�,�,.n }_
JESSICANotary Public
ALANIZ
'{ STATE OF TEXAS
hofycr,, My Comm. Exp. 07-16-2012
✓ V V V V V V V V V V V
Page 11 of 11
SMALL BUSINESS INCENTIVEAGREEMENT-DELMAR Interns 2011.docx
-84-
SCHEDULE A
DEL MAR'S TIME OF
DEL MAR'S
CORPORATION's
PERFORMANCE
CONDITIONS
MAXIMUM
PRECEDENT AND
PAYMENT
PERFORMANCE
TOWARD
REQUIREMENTS
GRANT DURING
PERIOD
August 1, 2011
Placement of not more
$173,223.00
through August 16,
2012
than a total of 93
interns with small
businesses in Corpus
Christi during the Fall
Semester of 2011,
Spring Semester of
2012, or Summer
Session of 2012, plus
employment of 2
interns to assist in
program administration
during the Fall and
Spring Semesters and
Summer Session.
A -- 1
SMALL BUSINESS INCENTIVEAGREEMENT -DELMAR Interns 2011.docx
—85—
BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT
This Business Incentives Project Service Agreement ("Project Service Agreement") is
entered into between the Corpus Christi Business and Job Development Corporation
("Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) empowered local
communities with the ability to adopt an optional local sales and use tax as a means of
improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax
for the promotion and development of new and expanded business enterprises at the
rate of one-eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corporation's Board of Directors;
WHEREAS, the Corporation exists for the purposes of encouraging and assisting
entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives, which the City Council incorporated into the City of Corpus Christi Economic
Development Incentive Policies 2009-2011 on November 17, 2009, and subsequently
the Board again amended the Corporation's Guidelines and Criteria for Granting
Business Incentives the on October 18, 2010;
WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6,
Vernon's Texas Revised Civil Statutes, requires the City Council to approve all
programs and expenditures of the Corporation;
WHEREAS, Del Mar College has submitted a proposal to the Corporation for $173,223
for an intern program for small businesses;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas, to fund the Del Mar College's an intern program for small
businesses; and
WHEREAS, the Corporation and Del Mar College have executed a business incentive
project agreement for an intern program for small businesses.
In consideration of the covenants, promises, and conditions stated in this Project
Service Agreement, the Corporation and the City agree as follows:
Page 1 of 3
Project Support Agreement 4A -City — Del Mar Intern — 07112011.docx
_86_
1. Project Service Agreement to Implement Business Incentives Agreement. This
Project Service Agreement between the City and the Corporation is executed to
implement the Business Incentive Agreement for an intern program for small
businesses between the Corporation and Del Mar College ("Business Incentive
Agreement").
2. Term. The term of this Project Service Agreement runs concurrently with the term of
the Business Incentive Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Business Incentive Agreement for
the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Service Agreement is the latest
date that either party executes this Agreement.
6. Amendments or Modifications. No amendments or modifications to this Project
Service Agreement may be made, nor any provision waived, unless in writing signed by
a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Service Agreement or the application of this
Project Service Agreement to any person or circumstance is, to any extent, held
illegal, invalid, or unenforceable under present or future law or by a final
judgment of a court of competent jurisdiction, then the remainder of this Project
Service Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Service Agreement, then the remainder of this Project Service Agreement is not
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
Page 2 of 3
Project Support Agreement 4A -City -- Del Mar Intern — 07112011.docx
—87—
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Service Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only
and are not a part of this Project Service Agreement. The captions do not in any way
limit or amplify the terms and provisions of this Project Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Eloy Salazar
City Manager President
Date: Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form: July /3 , 2011.
R. Raining
First Assistant City Attorney
for City Attorney
Page 3 of 3
Project Support Agreement 4A -City — Del Mar Intern -- 07112011.docx
—88—
7
Cityof
Yn9 Corpus
vChnsti
AGENDA MEMORANDUM
for the City Council Meeting of July 19, 2011
DATE: July 7, 2011
TO: Ronald L. Olson, City Manager
THROUGH: Rudy Garza, Interim Assistant City Manager
rudyga@cctexas.com
(361) 826-3082
FROM: Mike Culbertson, VP%i7?
o
Corpus Christi Regional Ec mic Development Corporation
mculbertsonRccredc. com
(361) 882-7448
Type A Grant for Texas A&M University — Corpus Christi Internship Program
PURPOSE:
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Texas A&M — Corpus Christi, which provides grants of
up to $190,635, for the intern program for small businesses and authorizing the City Manager, or
designee, to execute a Small Business Incentive Project Support Agreement with the Corpus Christi
Business and Job Development Corporation regarding implementation and administration of the Texas
A&M — Corpus Christi Intern Program Small Business Incentive Agreement.
BACKGROUND AND FINDINGS:
TAMU-CC has a program where students can work for a local company as an intern. The local
company will pay minimum wage while the Type A grant will match that wage. This encourages
companies to hire interns, it allows the student to get real world work experience, and has a goal to
create new jobs. The Type A Board has funded this program since 2007. They are requesting
$190,635 to fund 105 intern positions.
ALTERNATIVES:
Some local companies do offer internships but these are large companies and they recruit
nationwide. This allows local small companies to use interns.
OTHER CONSIDERATIONS:
None
—91—
FINANCIAL IMPACT:
o Not Applicable
o Operating Expense ❑ Revenue
Page 2 of 2
❑ CIP
FISCAL YEAR: 2012
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
0
Encumbered/Expended
amount as of 06/30/2011
0
This item
0
0
190,365
190,365
BALANCE
0
0
190,365
190,365
FUND: Type A
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to enter into a five year
Type A agreement
CONFORMITY TO CITY POLICY:
This project is consistent with the City's stated goals of promoting economic development as
stated in the City Objectives.
EMERGENCY / NON -EMERGENCY:
Non -Emergency
DEPARTMENTAL CLEARANCES:
Legal Department
Finance Department
LIST OF SUPPORTING DOCUMENTS:
Resolution
TAMU-CC Type A Agreement
Agreement between the City and the Business and Job Development Corporation
Cc: Jay Reining, First Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
—92—
Page 1 of 3
RESOLUTION
APPROVING A SMALL BUSINESS INCENTIVES AGREEMENT
BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION AND TEXAS A & M
UNIVERSITY -- CORPUS CHRISTI, WHICH PROVIDES A
GRANT OF UP TO $190,635.00 FOR AN INTERN PROGRAM TO
SUPPORT SMALL BUSINESSES AND AUTHORIZING THE CITY
MANAGER, OR DESIGNEE, TO EXECUTE A PROJECT
SUPPORT AGREEMENT WITH THE CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION
REGARDING IMPLEMENTATION AND ADMINISTRATION OF
THE TEXAS A & M UNIVERSITY -- CORPUS CHRISTI SMALL
BUSINESS INCENTIVES AGREEMENT
WHEREAS, the Corpus Christi Business and Job Development Corporation
("Type A Board") has budgeted funds to assist small businesses and promote
new jobs in Corpus Christi, Texas.
WHEREAS, there is a need for a small business incentives project support
agreement between the City of Corpus Christi ("City") and the Type A Board for
the implementation and administration of the small business incentives
agreement with Texas A & M University -- Corpus Christi for a intern program to
support small businesses.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That small business incentives agreement for an intern program to
support small businesses between the Type A Board and Texas A & M University
-- Corpus Christi, which is attached to this resolution as Exhibit A, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a
project support agreement between the City and Type A Board for the
implementation and administration of the small business incentives agreement
with Texas A & M University -- Corpus Christi for a intern program to support
small businesses, which is attached to this resolution as Exhibit B.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Res-TAMUCC Intern-07112011.docx
—93—
Joe Adame
Mayor
APPROVED as to form: July /3 , 2011
R. Jay
First sista'nt City Attorney
For the City Attomey
Res-TAMUCC Intern-07112011.docx
—94—
Page 2of3
Corpus Christi, Texas
of , 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
Res-TAMUCC Intern-07112011.docz
—95—
Page 3 of 3
SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION AND TEXAS A & M
UNIVERSITY -- CORPUS CHRISTI FOR AN INTERN PROGRAM TO SUPPORT
SMALL BUSINESSES
This Small Business Incentives Agreement for ("Agreement") is entered into between
the Corpus Christi Business and Job Development Corporation ("Corporation") and
Texas A & M University -- Corpus Christi, a Texas institution of higher education
("TAMU-CC").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City")
passed Proposition 2, New and Expanded Business Enterprises, which authorized the
adoption of a sales and use tax for the promotion and development of new and
expanded business enterprises at the rate of one-eighth of one percent to be imposed
for 15 years;
WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corpus Christi Business and Job
Development Corporation Board;
WHEREAS, the Corpus Christi Business and Job Development Corporation exists for
the purposes of encouraging and assisting entities in the creation of jobs for the citizens
of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Small business
incentives;
WHEREAS, Section 501.073, Texas Local Government Code, requires the City Council
to approve all programs and expenditures of the corporation;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Small business incentives on September 18, 2007;
WHEREAS, TAMU-CC has requested business development funds from the Board to
assist small businesses by providing access to students, who will serve as interns in
professional level positions;
WHEREAS, the small businesses will pay the student interns minimum wage (currently
$7.25 per hour) and TAMU-CC will match the small business contribution.
Page 1 of 11
SMALL BUSINESS INCENTIVE AGREEMENT TAMUCC Interns Final.docx
-96-
WHEREAS, the interns will be selected based on the needs of the small businesses
with the goal of providing the businesses with resources that make the businesses more
effective and provide growth opportunities;
WHEREAS, the primary goal of the program is to provide support to small businesses in
Corpus Christi that will encourage growth, retention, economic development, and job
creation;
WHEREAS, the goal of the project is the creation of 1 new full time job for every 10
internship positions funded (a 10% new job "return on investment");
WHEREAS, a secondary benefit of the small business intern program is providing
students real-world experience, while they are making a living wage without working
extended hours and developing potential full-time employment opportunities following
graduation;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas that small business development funds be provided to TAMU-CC,
through this Agreement with TAMU-CC, to be used by TAMU-CC to assist small
businesses by providing access to students, who will serve as interns in professional
level positions.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and TAMU-CC agree as follows:
1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement.
2. Term.
a. The term of this Agreement is for one year from August 1, 2011, through
August 9, 2012.
b. This Agreement may be extended at the option of the Corporation for up to
four additional one year terms, contingent upon annual appropriation of funds
and approval of the City Council.
c. If this Agreement is extended for subsequent period, this Agreement may be
amended by adoption of a revised Schedule A, which is attached to and
incorporated into this Agreement.
3. Grant.
a. The Corporation will grant TAMU-CC an incentive of up to One Hundred
Ninety Thousand Six Hundred Thirty Five Dollars ($190,635.00), which must be
used to fund one half of the salary of up to a total of 105 interns during the Fall
Semester of 2011, Spring Semester of 2012, and Summer Session in 2012, and
the entire salary on an intern hired to help administer the program during the Fall
Page 2 of 11
SMALL BUSINESS INCENTIVE AGREEMENT TAMUCC Interns Final.docx
-97-
and Spring Semesters and Summer Session. The interns will be paid twice the
minimum wage, while participating in TAMU-CC's Small Business Employer
Intern Program.
b. The Corporation's grant conditioned upon TAMU-CC's successful completion
of the terms of this Agreement, including, but not limited to, the performance
requirements and conditions precedent in Schedule A.
c. The Corporation's grant shall be paid in monthly installments based upon
evidence of the amount paid by TAMU-CC to the small business employers
during the prior month.
4. TAMU-CC's Duties and Responsibilities.
a. TAMU-CC shall provide administrative oversight and direct supervision for the
placement of interns in the TAMU-CC's Small Business Employer Intern
Program.
b. TAMU-CC shall create and maintain not less than one part-time intern (1)
employment position to assist in the Small Business Employer Intern Program in
Corpus Christi, Nueces County, Texas, during the term of this Agreement. The
intern must be paid twice the minimum wage, which is scheduled to be $7.25 per
hour.
c. TAMU-CC shall place, with small businesses in Corpus Christi, up to the total
number of interns specified in Schedule A, during any the academic year.
(1) Since the primary goal of the TAMU-CC's Small Business Employer
Intern Program is to provide support to small businesses in Corpus Christi
that will encourage growth, retention, economic development, and job
creation, placements must be based on the needs of the small business
with the goal of providing the business with resources that make the
business more effective and provide growth opportunities for the
businesses.
(2) For the purpose of this section a small business may include a
chambers of commerce, non-profit organizations, and other entity that will
use the intern to assist existing, start-up, and home based small
businesses in the City; recruit new small business to the City; assist the
expansion of existing small businesses in the City; help entrepreneurs
create start-up businesses; or help the owners and managers of small
businesses develop their businesses.
d. TAMU-CC shall ensure that the small business employer of each intern pays
the student intern the minimum wage, and TAMU-CC shall match the small
business employer's payments to the interns.
Page 3 of 11
SMALL BUSINESS INCENTIVE AGREEMENT TAMUCC Interns Final.docx
—98—
e. TAMU-CC shall try to place the interns for 20 hours per week and 12 weeks
per semester or summer session.
f. TAMU-CC shall work with the small businesses that receive interns under the
program to encourage the creation of permanent full time jobs for the interns or
similarly qualified individuals.
5. Job Creation Qualification.
a. In order to count as a created job under this Agreement, the job must pay
wages as required by Section 38(b) of the Development Corporation Act of 1979,
as amended, which is the median wage of the occupation in the Corpus Christi
MSA as determined by Texas Workforce Commission's Texas Industry Profiles
report.
b. A full-time permanent job is one that provides at least 2,080 hours annually.
c. TAMU-CC agrees to confirm and document to the Corporation that each job
created as a result of funding provided by this Agreement is maintained
throughout the term of this Agreement.
d. TAMU-CC agrees to provide Corporation with a sworn certificate by
authorized representative of each shall business assisted under this Agreement
certifying the number of full-time permanent employees employed by the
business assisted through the Intern Program.
e. TAMU-CC shall ensure that the Corporation is allowed reasonable access to
personnel records of the businesses assisted under this Agreement.
6. Reports and Monitoring.
a. TAMU-CC shall provide a report at the end of each semester or summer
session certifying the status of compliance through the life of the Agreement.
Documentation for jobs may be in the form of quarterly IRS 941 returns, TAMU-
CC employer Quarterly Reports, or employee rosters that show the hours worked
and the positions filled, and such other reports as may reasonably be required.
b. TAMU-CC, during normal working hours shall allow the Corporation and its
designee, City of Corpus Christi Economic Development Department, reasonable
access to TAMU-CC's employment records and books, to verify employment and
all other relevant records related to each of the other economic development
considerations and incentives, as stated in this Agreement, but the confidentiality
of the records and information must be maintained by Corporation and its
designee, unless such records and information shall be required by a court order,
a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney
General.
7. Warranties. TAMU-CC warrants and represents to Corporation the following:
Page 4 of 11
SMALL BUSINESS INCENTIVE AGREEMENT TAMUCC Interns FinaLdocx
—99—
a, TAMU-CC has the authority to enter into and perform, and will perform, the
terms of this Agreement.
b. The individual executing this Agreement on behalf of TAMU-CC is duly
authorized to execute this Agreement on behalf of TAMU-CC.
c. No litigation or governmental proceeding is pending or, to the knowledge of
TAMU-CC or TAMU-CC's officers, threatened against or affecting TAMU-CC that
may result in any material adverse change in TAMU-CC's business, properties,
or operations. No consent, approval, or authorization of or registration or
declaration within any governmental authority is required in connection with the
execution of this Agreement or the transactions contemplated by this Agreement.
d. No certificate, statement, or information provided by TAMU-CC to Corporation
or the City of Corpus Christi in connection with any transaction contemplated by
this Agreement, contains any untrue statements or fails to state any fact
necessary to keep the statements contained in the certificate, statement, or
information from being misleading.
e. To the best of its knowledge, TAMU-CC has acquired and maintained all
necessary rights, licenses, permits, and authority to carry out this Agreement,
and will continue to use its best efforts to maintain all necessary rights, licenses,
permits, and authority.
f. The funds granted through this Agreement must be utilized solely for the
purpose of offsetting the cost of creating and maintaining the interns for TAMU-
CC's Small Business Employer Intern Program.
g. TAMU-CC shall complete the project required by this Agreement, and shall
provide andstaff the required employment positions, investment, and other
economic development considerations described in this Agreement.
h. TAMU-CC shall timely and fully comply with all of the terms and conditions of
this Agreement.
i. TAMU-CC has reviewed a copy of the Subtitle C1, Title 12, Texas Local
Government Code, which governs development corporations and is available on
the State's website, and acknowledges that the funds granted in this Agreement
must be utilized solely for purposes authorized under State law and by the terms
of this Agreement.
j. In the event it is determined by Corporation or City of Corpus Christi that funds
provided under this Agreement were not used as authorized by State law, then
TAMU-CC shall repay the funds to the Corporation within 30 days of written
notice requesting reimbursement.
k. If an audit determines that the funds were not used for authorized purposes ,
TAMU-CC agrees to reimburse Corporation for the sums of money spent for
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—100—
purposes not authorized by law within 30 days written notice requesting
reimbursement.
I. There are no bankruptcy proceedings currently pending concerning TAMU-CC,
nor are any such proceedings contemplated by TAMU-CC, as of the date of
execution of this Agreement by TAMU-CC.
m. TAMU-CC shall provide information, reports, or statements respecting its
business operations and financial condition as Corporation may reasonably
request from time to time.
8. All representations, warranties, covenants, and agreements of the parties, as well as
any rights and benefits of the parties pertaining to the transaction contemplated by this
Agreement, shall survive the original execution date of this Agreement.
9. Compliance with Laws. TAMU-CC shall observe and obey all applicable laws,
ordinances, regulations, and rules of the Federal, State, county, and city governments.
10. Non -Discrimination. TAMU-CC covenants and agrees that TAMU-CC will not
discriminate nor permit discrimination against any person or group of persons, with
regard to employment and the provision of services at, on, or in the Facility, on the
grounds of race, religion, national origin, marital status, sex, age, disability, or in any
manner prohibited by the laws of the United States or the State of Texas.
11. Force Majeure. If the Corporation or TAMU-CC are prevented, wholly or in part,
from fulfilling its obligations under this Agreement by reason of any act of God,
unavoidable accident, acts of enemies, fires, floods, governmental restraint or
regulation, other causes of force majeure, or by reason of circumstances beyond its
control, then the obligations of the Corporation or TAMU-CC are temporarily suspended
during continuation of the force majeure. If either party's obligation is affected by any of
the causes of force majeure, the party affected shall promptly notify the other party in
writing, giving full particulars of the force majeure as soon as possible after the
occurrence of the cause or causes relied upon.
12. Assignment. TAMU-CC may not assign all or any part of its rights, privileges, or
duties under this Agreement without the prior written approval of the Corporation and
City. Any attempted assignment without approval is void, and constitutes a breach of
this Agreement.
•
13. Indemnity. To the extent authorized by law, TAMU-CC covenants
to fully indemnify, save, and hold harmless the Corporation, the City,
their respective officers, employees, and agents ("Indemnitees")
against all liability, damage, loss, claims demands, and actions of any
kind on account of personal injuries (including, without limiting the
foregoing, workers' compensation and death claims), or property loss
or damage of any kind, which arise out of or are in any manner
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connected with, or are claimed to arise out of or be in any manner
connected with TAMU-CC activities conducted under or incidental to
this Agreement, including any injury, loss or damage caused by the
sole or contributory negligence of any or all of the Indemnitees.
TAMU-CC must, at its own expense, investigate all those claims and
demands, attend to their settlement or other disposition, defend all
actions based on those claims and demands with counsel
satisfactory to Indemnitees, and pay all charges of attorneys and all
other cost and expenses of any kind arising from the liability,
damage, loss, claims, demands, or actions.
14. Events of Default. The following events constitute a default of this Agreement:
a. Failure of TAMU-CC to timely, fully, and completely comply with any one or
more of the requirements, obligations, duties, terms, conditions, or warranties of
this Agreement.
b. The Corporation or City determines that any representation or warranty on
behalf of TAMU-CC contained in this Agreement or in any financial statement,
certificate, report, or opinion submitted to the Corporation in connection with this
Agreement was incorrect or misleading in any material respect when made;
15. Notice of Default. Should the Corporation or City determine that TAMU-CC is in
default according to the terms of this Agreement, the Corporation or City shall notify
TAMU-CC in writing of the event of default and provide 60 days from the date of the
notice ("Cure Period") for TAMU-CC to cure the event of default.
16. Results of Uncured Default. After exhausting good faith attempts to address any
default during the cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of TAMU-CC, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period.
a. TAMU-CC shall immediately repay all funds paid by Corporation under this
Agreement.
b. TAMU-CC shall pay Corporation reasonable attorney fees and costs of court
to collect amounts due to Corporation.
c. The Corporation shall have no further obligations to TAMU-CC under this
Agreement.
d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
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17. No Waiver.
a.. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, constitutes a waiver of any subsequent breach of
the covenant or condition of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, justifies or authorizes the nonobservance on any
other occasion of the covenant or condition or any other covenant or condition of
this Agreement.
c. Any waiver or indulgence of TAMU-CC default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time TAMU-CC is in default in any of
its conditions or covenants of this Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Agreement on account of the default.
18. Limitation on Corporation's Liability. TAMU-CC specifically agrees that Corporation
shall only be liable to TAMU-CC for the actual amount of the money grants to be
conveyed to TAMU-CC, and shall not be liable to TAMU-CC for any actual or
consequential damages, direct or indirect, interest, attorney fees, or cost of court for any
act of default by Corporation under the terms of this Agreement.
a. Payment by Corporation is strictly limited to those funds so allocated,
budgeted, and collected solely during the grant term of this Agreement, being
August 1, 2011, through August 9, 2012.
b. Corporation will use its best efforts to anticipate economic conditions and to
budget accordingly.
c. However, it is further understood and agreed that, should the actual total sales
tax revenue collected for any one year be less than the total amount of grants to
be paid to all contracting parties with Corporation for that year, then in that event,
all contracting parties shall receive only their pro rata share of the available sales
tax revenue for that year, less Corporation's customary and usual costs and
expenses, as compared to each contracting parties' grant amount for that year,
and Corporation shall not be liable to for any deficiency at that time or at any time
in the future. In this event, Corporation will provide all supporting documentation,
as requested.
d. Payments to be made shall also require a written request from TAMU-CC to
be accompanied by all necessary supporting documentation.
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19. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
TAMU-CC:
Texas A & M University — Corpus Christi
Attn: President/CEQ
6300 Ocean Drive, Unit 5756
Corpus Christi, Texas 78412-5756
Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn.: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided above.
20. Incorporation of Other Documents. The Corpus Christi Business and Job
Development Corporation Guidelines and Criteria for Granting Small business
incentives ("Corporation Guidelines"), as amended, are incorporated into this
Agreement.
21. Amendments or Modifications. •No amendments or modifications to this Agreement
may be made, nor any provision waived, unless in writing signed by a person duly
authorized to sign Agreements on behalf of each party.
22. Relationship of Parties. In performing this Agreement, both the Corporation and
TAMU-CC will act in an individual capacity, and not as agents, representatives,
employees, employers, partners, joint -venturers, or associates of one another. The
employees or agents of either party may not be, nor be construed to be, the employees
or agents of the other party for any purpose.
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23. Captions. The captions in this Agreement are for convenience only and are not a
part of this Agreement. The captions do not in any way limit or amplify the terms and
provisions of this Agreement.
24. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Agreement or the application of this Agreement to any
person or circumstance is, to any extent, held illegal, invalid, or unenforceable
under present or future law or by.a final judgment of a court of competent
jurisdiction, then the remainder of this Agreement, or the application of the term
or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it
is the definite intent of the parties to this Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Agreement be
given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Agreement, then the remainder of this Agreement is not affected by the law, and
in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or
provision, as similar in terms to the illegal, invalid, or unenforceable clause or
provision as may be possible and be legal, valid, and enforceable, will be added
to this Agreement automatically.
25. Venue. Venue for any legal action related to this Agreement is in Nueces County,
Texas.
26. Sole Agreement. This Agreement constitutes the sole Agreement between
Corporation and TAMU-CC. Any prior Agreements, promises, negotiations, or
representations, verbal or otherwise, not expressly stated in this Agreement, are of no
force and effect.
27. Survival of Terms of Agreement and Obligations of Parties. The terms of this
Agreement and the following obligations of the parties survive the termination of this
Agreement:
a. Payment by the Corporation of the portion of the grant for salaries of interns
during the 2012 summer session under Section 5.c.
b. TAMU-CC's record keeping and reporting requirements under Sections 4, 5,
and 6.
c. TAMU-CC's duty to repay funds not used for an authorized purpose under
Section 7.
Page 10 of 11
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-105-
Corpus Christi Business & Job Development Corporation
By:
Date:
Eloy Salazar
Chairperson
Attest:
By:
Armando Chapa
Assistant Secretary
Texas A & M University - Corpus Christi
By: '-97//_
Fla ius C. Killebrew
President/CEO
Date: 1. /If
THE STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on Biu/5 7 , 2011, by
Flavius C. Killebrew, President/CEO, Texas A & M University -- Corpus Christi, a Texas
institution of higher education, on behalf of the university.
A ,4t7)pr3
Nota Public
State of Texas
MARY E. GONZALEZ
Notary Public, State of Texas
My Commission Etfpires
April 22, 2014
NOTARY WITHOUT BOND
Page 11 of 11
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-106-
SCHEDULE A
TAMU-CC's TIME OF
PERFORMANCE
TAMU-CC's
CONDITIONS
PRECEDENT AND
PERFORMANCE
REQUIREMENTS
CORPORATION's
MAXIMUM
PAYMENT
TOWARD
GRANT DURING
PERIOD
August 1, 2011
through August 9,
2012
Placement of not more
than a total of 105
interns with small
businesses in Corpus
Christi during the Fall
Semester of 2011,
Spring Semester of
2012, or Summer
Session of 2012, plus
employment of 1 intern
to assist in program
administration during
the Fall and Spring
Semesters and
Summer Session.
$190,635.00
A--1
SMALL BUSINESS INCENTIVE AGREEMENT TAMUCC IntenEnal.docx
SMALL BUSINESS INCENTIVES PROJECT SERVICE AGREEMENT
TEXAS A & M UNIVERSITY—CORPUS CHRISTI INTERN PROGRAM
This Small Business Incentives Project Service Agreement ("Project Service
Agreement") is entered into between the Corpus Christi Business and Job Development
Corporation ("Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
Cl, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax
for the promotion and development of new and expanded business enterprises at the
rate of one-eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corporation's Board of Directors;
WHEREAS, the Corporation exists for the purposes of encouraging and assisting
entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives, which the City Council incorporated into the City of Corpus Christi Economic
Development Incentive Policies 2009-2011 on November 17, 2009, and subsequently
the Board again amended the Corporation's Guidelines and Criteria for Granting
Business Incentives the on October 18, 2010;
WHEREAS, Section 501.073, Texas Local Government Code, requires the City Council
to approve all programs and expenditures of the corporation;
WHEREAS, Texas A & M University -- Corpus Christi has submitted a proposal to the
Corporation for $190,635.00 for an intern program for small businesses;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas, to fund the Texas A & M University -- Corpus Christi's intern
program for small businesses; and
WHEREAS, the Corporation and Texas A & M University -- Corpus Christi have
executed a small business incentives project agreement for an intern program for small
businesses.
In consideration of the covenants, promises, and conditions stated in this Project
Service Agreement, the Corporation and the City agree as follows:
Page 1 of 3
4AProject Support Agreement 4A-City-TAMUCC Intern-07112011.docx
—108—
1. Project Service Agreement to Implement Small Business Incentives
Agreement. This Project Service Agreement between the City and the Corporation is
executed to implement the Small Business Incentives Agreement for an intern program
for small businesses between the Corporation and Texas A & M University -- Corpus
Christi ("Small Business Incentives Agreement").
2. Term. The term of this Project Service Agreement runs concurrently with the term of
the Small Business Incentives Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Small Business Incentives
Agreement for the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Service Agreement is the latest
date that either party executes this Agreement.
6. Amendments or Modifications. No amendments or modifications to this Project
Service Agreement may be made, nor any provision waived, unless in writing signed by
a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Service Agreement or the application of this
Project Service Agreement to any person or circumstance is, to any extent, held
illegal, invalid, or unenforceable under present or future law or by a final
judgment of a court of competent jurisdiction, then the remainder of this Project
Service Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Service Agreement, then the remainder of this Project Service Agreement is not
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
Page 2 of 3
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—109—
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Service Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only
and are not a part of this Project Service Agreement. The captions do not in any way
limit or amplify the terms and provisions of this Project Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Eloy Salazar
City Manager President
Date: Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form: July -9 , 201.
R.7' fining
First A sistant Cit Attorney
for City Attorney
Page 3 of 3
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—110—
I
ujjki,City of
lin Corpus
Christi
AGENDA MEMORANDUM
for the City Council Meeting of July 19, 2011
DATE: July 6, 2011
TO: Ronald L. Olson, City Manager
THROUGH: Rudy Garza, Interim Assistant City Manag
rudyga@cctexas.com
(361) 826-3082
FROM: Mike Culbertson, VP- �.
Corpus Christi Regional Economic Development Corporation
mculbertson@ccredc.com
(361) 882-7448
PURPOSE
Type A Grant for Accion Texas, Inc. Loan Buy Down Program
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Accion Texas, Inc., which provides grants of up to
$400,000, for the interest buy down and grant programs for small businesses and authorizing the City
Manager, or designee, to execute a Small Business Incentive Project Support Agreement with the
Corpus Christi Business and Job Development Corporation regarding implementation and
administration of the Accion Texas Small Business Incentive Agreement.
BACKGROUND AND FINDINGS:
Acci6n Texas Inc. supports small and start-up companies with a loan interest buy -down
program when they cannot get financing anywhere else. Corpus Christi has supported this program
since 2004. They have helped over 250 small businesses in the city since the inception of this
program.
ALTERNATIVES:
Enlist local banks to lend to small businesses. To qualify for this program, small businesses
must have been turned down for a bank loan. Additionally local banks already participate in the Small
Business Administration (SBA) loan program.
OTHER CONSIDERATIONS:
By helping small businesses the City is increasing the economic development and growing
future jobs.
—113—
FINANCIAL IMPACT:
o Not Applicable o Operating Expense
o Revenue
Page 2 of 2
❑ CIP
FISCAL YEAR:
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
0
Encumbered/Expended
amount as of 06/30/2011
0
This item
0
0
400,000
400,000
BALANCE
0
0
400,000
400,000
:TypeA
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to enter into a one year
Type A agreement
CONFORMITY TO CITY POLICY:
This project is consistent with the City's stated goals of promoting economic development and
helping small businesses thrive in Corpus Christi.
EMERGENCY/NON-EMERGENCY:
Non -Emergency
DEPARTMENTAL CLEARANCES:
Legal Department
Finance Department
LIST OF SUPPORTING DOCUMENTS:
Accion Type A Agreement
Resolution
Agreement between the City and Business and Job Development Corporation
Cc: Jay Reining, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
—114—
Page 1 of 3
RESOLUTION
APPROVING A SMALL BUSINESS INCENTIVES AGREEMENT
BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION AND ACCION TEXAS, INC. , WHICH
PROVIDES GRANTS OF UP TO $400,000.00 FOR THE INTEREST
BUY -DOWN AND GRANT PROGRAMS FOR SMALL BUSINESSES
AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO
EXECUTE A SMALL BUSINESS INCENTIVE PROJECT SUPPORT
AGREEMENT WITH THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION REGARDING IMPLEMENTATION
AND ADMINISTRATION OF THE ACCIbN TEXAS SMALL BUSINESS
INCENTIVES AGREEMENT
WHEREAS, the Corpus Christi Business and Job Development Corporation ("Type A
Board") has budgeted funds to assist small business in Corpus Christi, Texas.
WHEREAS, in 2007, the Type A Board requested proposals and determined that the
proposal from ACCION Texas Inc. (ACCION Texas), best provided assistance for small
business support;
WHEREAS, ACCION Texas Inc. (ACCI6N Texas), has requested continued funding
from the Corporation for the successful interest buy -down program that assists small
businesses;
WHEREAS, ACCION Texas Inc. (ACCION Texas), has funding from the Corporation's
proposed grant program to assist small businesses;
WHEREAS, there is a need for a small business incentives project support agreement
between the City of Corpus Christi ("City") and the Type A Board for the implementation
and administration of the business incentives agreement with ACCI6N Texas for the
interest buy -down and grant programs to assist small businesses in Corpus Christi.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the small business incentives agreement for the interest buy -down
and grant programs for small businesses between the Type A Board and ACCION
Texas, which is attached to this resolution as Exhibit A, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a project
support agreement between the City and Type A Board for the implementation and
administration of the small business incentives agreement with ACCI6N Texas for the
interest buy -down and grant programs to assist small businesses in Corpus Christi,
which is attached to this resolution as Exhibit B.
Res-AgmtSmaliBus-ACCIONapproval--07112011. docx
—115—
ATTEST:
Page 2 of 3
THE CITY OF CORPUS CHRISTI
Armando Chapa Joe Adame
City Secretary Mayor
APPROVED: i1 day of July, 2011.
R. Ja ei ng
Firs Assi tant C%Attorney
For City Attorney
Res-AgmtSmallBus-ACCIONapproval--07112011.docx
—116—
Corpus Christi, Texas
of , 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
Res-AgmtSmallBus-ACCIONapproval-07112011. docx
—117—
Page 3 of 3
SMALL BUSINESS INCENTIVES AGREEMENT BETWEEN THE CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION AND ACCION TEXAS, INC.
FOR AN INTEREST BUY DOWN PROGRAM FOR SMALL BUSINESSES
This Small Businesses Incentives Agreement for an Interest Buy Down Program for
Small Businesses ("Agreement") is entered into between the Corpus Christi Business
and Job Development Corporation ("Corporation") and ACCION Texas, Inc., a Texas
nonprofit corporation ("ACCION Texas").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) empowered local
communities with the ability to adopt an optional local sales and use tax as a means of
improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City")
passed Proposition 2, New and Expanded Business Enterprises, which authorized the
adoption of a sales and use tax for the promotion and development of new and
expanded business enterprises at the rate of one-eighth of one percent to be imposed
for 15 years;
WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corpus Christi Business and Job
Development Corporation Board;
WHEREAS, the Corpus Christi Business and Job Development Corporation exists for
the purposes of encouraging and assisting entities in the creation of jobs for the citizens
of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on October 18, 2010,
amended the Corporation's Guidelines and Criteria for Granting Business Incentives;
WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6,
Vernon's Texas Revised Civil Statutes, requires the City Council to approve all
programs and expenditures of the corporation;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Business Incentives on November 9, 2010;
WHEREAS, ACCION Texas is a Texas nonprofit corporation whose principal mission is
to provide loans to small business owners lacking access to commercial credit;
WHEREAS, ACCION Texas anticipates, over the next twelve months, providing interest
buy down to 5.5% for approximately 60 loans with an average value of $25,000 to low
and moderate income micro and small business owners in Corpus Christi to generate
20 new permanent full-time jobs;
ACCION Texas Agreement 2011 (2).docx
Page 1 of 14
—1 1 8—
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas that business development funds be provided to ACCION Texas,
through this contract with ACCION Texas, to be used by ACCION Texas to buy down
the interest on commercial loans to 5.5% interest for small businesses and establish a
small business grant program, both of which will result in creation of new full-time
permanent jobs in the city of Corpus Christi.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and ACCION Texas agree as follows:
1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement.
2. Term. The term of this Agreement is for one year from August 1, 2011, through July
31, 2012. This agreement may be extended at the option of the Corporation for up to
two additional one year terms, contingent upon annual appropriation of funds and
approval of the City Council.
3. Loan Loss Reserve Program.
a. The Corporation has previously provided $75,000 for the Loan Loss Reserve
Program.
b. The Loan Loss Reserve Program funds will be used to allow ACCION Texas
to leverage additional capital for small business loans.
c. "Small business," "small business start-up," and "home based small business"
are defined in the Corpus Christi Business & Job Development Corporation
Guidelines & Criteria for Granting Business Incentives ("Corporation Guidelines),
adopted on May 5, 2003, and amended on July 24, 2004, April 25, 2006,
April 10, 2007, October 18, 2010, and June 20, 2011.
d. ACCION Texas anticipates that it will have one million dollars available on an
annual basis to be lent to qualifying small businesses in Corpus Christi.
e. For every $50,000 in loans that ACCION Texas provides to a small business
in Corpus Christi, ACCION Texas shall ensure that the loan will result in the
creation of one new full-time permanent job in the city of Corpus Christi.
f. Businesses assisted must be located in or locating within the city limits of
Corpus Christi, Texas.
g. Businesses assisted must be unable to obtain a loan from traditional lending
institutions.
h. Loan amounts shall be within the range of $5,000 to $75,000.
ACCION Texas Agreement 2011 (2).docx
Page 2 of 14
—119—
i. ACCION Texas shall provide the Corporation with quarterly reports to identify
the loans made, name and address of business receiving loan, jobs created, and
other reports as requested by the Corporation.
j. ACCION Texas shall provide the corporation with quarterly reports of capital
available for loans to qualified Corpus Christi small businesses or qualified small
businesses locating to Corpus Christi.
k. ACCION Texas will provide funds for operations and loan capital to implement
and sustain the program.
4. Interest Buy Down Program.
a. In consideration for creation and maintenance of new jobs as provided in this
Agreement, the Corporation agrees to pay ACCION Texas up to $350,000 for the
Interest Buy -Down Program as follows:
i. ACCION Texas must first receive a request for a loan from a small
business or start-up company that has the ability to produce jobs in the
future and is located in Corpus Christi or will be locating in Corpus Christi
("Business").
ii. The request from the applicant must include a notarized affidavit stating
that they have applied for normal financing from a bank, or similar lending
institution, and have been denied a loan.
ACCION Texas shall review the request for a loan from the Business.
iv. Upon ACCION Texas approval of a loan, and prior to the dosing of the
loan, ACCION Texas shall submit Attachment "A" to the Corporation
requesting funds to buy down the interest rate from the interest rate
allowable per the underwriting criteria to 5.5%. The Corporation
authorizes an interest buy down up to 7% of the interest rate to finance the
loan. Payment by Corporation shall not exceed $17,500 per loan and
shall be calculated using the following formula:
(Loan amount x interest rate to buy down to 5.5%) / 12 = N
N x number of payments=interest buy down reimbursement to
ACCION Texas for business loan. (The number of monthly
payments shall not exceed sixty (60).)
Example: ($10,000 x 7%) / 12 = 58.33
58.33 x 36 = $2,100 = amount to be reimbursed to ACCION Texas
for business loan.
ACCION Texas Agreement 2011 (2).docx
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v. The Corporation shall provide a response to approve or deny the
reimbursement for the Interest Buy Down Program funds to ACCI6N
Texas within 2 business days of receipt of Attachment "A." The
Corporation shall reimburse funds within 30 days after evidence of closing
the loan is submitted.
vi. The total funds available on an annual basis under the Interest Buy
Down Program under this agreement is $350,000.
b. The loans assisted with the program must be within the range of $5,000 to
$75,000.
c. This program must result in the creation of one permanent full-time job per
every loan of at least $50,000 assisted with the Interest Buy Down Program.
ACCI6N Texas shall ensure that the loan will result in the creation of one new
full-time permanent job in the city of Corpus Christi.
d. Businesses assisted through this program must be:
i. A small business start-up or existing small business that is unable to
obtain a loan from a traditional financial institution or unable to qualify for
the total needed for a business loan through a bank or credit union, in
which case ACCI6N Texas can loan the remaining amount with the buy -
down interest rate program in conjunction with the bank\credit union.
ii. An existing small business that needs assistance to expand.
iii. Any small business assisted under the provisions of paragraphs i or ii
of this subsection, must be:
A. Located in or locating in Corpus Christi city limits.
B. A small business start-up or home-based small business in
existence for not more than five (5) years located in the Corpus
Christi city limits. There is no limit on how long an existing small
business may be in existence.
C. Current on payment of all sales taxes.
D. Current on payment of all ad valorem taxes in the City of
Corpus Christi.
e. The following projects are ineligible for this program:
i. Refinancing of existing loans or debt.
ii. Small businesses and home-based small businesses located outside
the Corpus Christi city limits
ACCION Texas Agreement 2011 (2).docx
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—121—
iii. Loans to existing businesses which are not planning on expanding.
iv. Business retention.
f. ACCIbN Texas may use up to $200,000 to assist start-up and existing small
businesses that have little or no access to traditional credit, and up to $150,000
to existing small businesses that wish to expand.
g. ACCION Texas shall provide the Corporation with quarterly reports as
provided in Attachment "B" to identify the loans made, name and address of the
business receiving the loan, jobs created under the Interest Buy Down Program,
and other reports as requested by the Corporation.
h. ACCION Texas shall provide funds for operations and loan capital to
implement and sustain the program.
i. ACCION Texas shall develop loan underwriting criteria and payment terms
and conditions for its loan program and provide to the Corporation.
j. At the termination of this agreement and after repayment or other conclusion of
all loans assisted by Interest Buy Down Program, ACCION Texas will return to
the Corporation any unexpended funds remaining from the Loan Loss Reserve
Program.
5. Small Business Grant Program.
a. In consideration for creation and maintenance of new jobs as provided in this
Agreement, the Corporation agrees to pay ACCION Texas up to $50,000 for the
Small Business Grant Program as follows:
i. Grants to loan applicants who do not meet standard underwriting
criteria, either because of capacity, cash flow, or credit, who could benefit
from a grant to boost their ability to become successful. The grant amount
may not exceed $2,500 or 10% of the principal amount requested,
whichever is less.
ii. Grants to loan applicants who want to use part of loan proceeds to
reduce energy consumption or transition into green retail products. The
grant amount may not exceed $2,500 or 25% of the upgrades presented
in the loan file.
iii. Grants to loan applicants who provide services for working families
(e.g. both children and adult day care centers) to improve their facilities to
be compliant with state/federal standards. The grant amount may not
exceed $2,500.
iv. Grants to loan applicants that are veteran owned businesses. The
grant amount may not exceed $500.
ACCION Texas Agreement 2011 (2).docx
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—122—
h. ACCION Texas shall develop grant award criteria and payment terms and
conditions for the grant loan program, and must provide copies of the criteria,
terms, and conditions to the Corporation.
i. At the termination of this agreement or other conclusion of the Small Business
Grant Program, ACCION Texas shall return to the Corporation any unexpended
funds remaining from the Small Business Grant Program.
6. Job Creation Qualification.
a. In order to count as a created job under this Agreement, the job must pay
wages as required by Section 38(b) of the Development Corporation Act of 1979,
as amended, which is the median wage of the occupation in the Corpus Christi
MSA as determined by Texas Workforce Commission's Texas Industry Profiles
report.
b. A full-time permanent job is one that provides at least 2,080 hours annually.
c. ACCION Texas agrees to confirm and document to the Corporation that each
job created as a result of funding provided by this Agreement is maintained
throughout the term of the loan to the Business.
d. ACCION Texas agrees to provide Corporation with a sworn certificate by
authorized representative of each shall business assisted under this Agreement
certifying the number of full-time permanent employees employed by the small
business.
e. ACCION Texas shall ensure that the Corporation is allowed reasonable
access to personnel records of the small businesses assisted under this
Agreement.
6. Buy Local Provision.
a. ACCION Texas agrees to use its best efforts to give preference and priority to
local manufacturers, suppliers, contractors, and labor, except where not
reasonably possible to do so without added expense, substantial inconvenience,
or sacrifice in operating efficiency.
b. For the purposes of this section, the term "local" as used to describe
manufacturers, suppliers, contractors, and labor includes firms, businesses, and
persons who reside in or maintain an office within a 50- mile radius of Nueces
County.
7. Local Offices. Two staff persons of ACCION Texas offices shall be located in
Corporation designated offices or a mutually agreeable location.
ACCION Texas Agreement 2011 (2).docx
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—123—
8. Representation on ACCION Texas governing board. ACCION Texas agrees to
appoint a person designated by the Corporation as a member of ACCION Texas
governing board.
9. Warranties. ACCION Texas warrants and represents to Corporation the following:
a. ACCION Texas is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Texas, has all corporate power and
authority to carry on its business as presently conducted in Corpus Christi,
Texas.
b. ACCION Texas has the authority to enter into and perform, and will perform,
the terms of this Agreement.
c. ACCION Texas has timely filed and will timely file all local, State, and Federal
tax reports and returns required by laws to be filed and all Texas, assessments,
fees, and other governmental charges, including applicable ad valorem taxes,
have been timely paid, and will be timely paid , during the term of this
Agreement.
d. ACCION Texas has received a copy of the Texas Development Corporation
Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and
acknowledges that the funds granted in this Agreement must be utilized solely for
purposes authorized under State law and by the terms of this Agreement.
e. If an audit determines that the funds were not used for authorized purposes,
ACCION Texas agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
f. The parties executing this Agreement on behalf of ACCION Texas are duly
authorized to execute this Agreement on behalf of ACCION Texas.
10. Compliance with Laws. ACCION Texas shall observe and obey all applicable laws,
ordinances, regulations, and rules of the Federal, State, county, and city governments.
11. Non -Discrimination. ACCION Texas covenants and agrees that ACCION Texas
will not discriminate nor permit discrimination against any person or group of persons,
with regard to employment and the provision of services at, on, or in the Facility, on the
grounds of race, religion, national origin, marital status, sex, age, disability, or in any
manner prohibited by the laws of the United States or the State of Texas.
12. Force Majeure. If the Corporation or ACCION Texas are prevented, wholly or in
part, from fulfilling its obligations under this Agreement by reason of any act of God,
unavoidable accident, acts of enemies, fires, floods, governmental restraint or
regulation, other causes of force majeure, or by reason of circumstances beyond its
control, then the obligations of the Corporation or ACCION Texas are temporarily
suspended during continuation of the force majeure. If either party's obligation is
Page 8 of 14
—124—
ACCION Texas Agreement 2011 (2).docx
affected by any of the causes of force majeure, the party affected shall promptly notify
the other party in writing, giving full particulars of the force majeure as soon as possible
after the occurrence of the cause or causes relied upon.
•
13. Assignment. ACCION Texas may not assign all or any part of its rights, privileges,
or duties under this Agreement without the prior written approval of the Corporation and
City. Any attempted assignment without approval is void, and constitutes a breach of
this Agreement.
14. Indemnity. ACCION Texas covenants to fully indemnify, save,
and hold harmless the Corporation, the City, their respective officers,
employees, and agents ("Indemnitees") against all liability, damage,
loss, claims demands, and actions of any kind on account of personal
injuries (including, without limiting the foregoing, workers'
compensation and death claims), or property loss or damage of any
kind, which arise out of or are in any manner connected with, or are
claimed to arise out of or be in any manner connected with ACCION
Texas activities conducted under or incidental to this Agreement,
including any injury, loss or damage caused by the sole or
contributory negligence of any or all of the Indemnitees. ACCION
Texas must, at its own expense, investigate all those claims and
demands, attend to their settlement or other disposition, defend all
actions based on those claims and demands with counsel
satisfactory to Indemnitees, and pay all charges of attorneys and all
other cost and expenses of any kind arising from the liability,
damage, loss, claims, demands, or actions.
15. Events of Default. The following events constitute a default of this Agreement:
a. Failure of ACCION Texas to timely, fully, and completely comply with any one
or more of the requirements, obligations, duties, terms, conditions, or warranties
of this Agreement.
b. The Corporation or City determines that any representation or warranty on
behalf of ACCION Texas contained in this Agreement or in any financial
statement, certificate, report, or opinion submitted to the Corporation in
connection with this Agreement was incorrect or misleading in any material
respect when made;
c. Any judgment is assessed against ACCION Texas or any attachment or other
levy against the property of ACCION Texas with respect to a claim remains
unpaid, undischarged, or not dismissed for a period of 30 days.
d. ACCION Texas makes an assignment for the benefit of creditors.
ACCION Texas Agreement 2011 (2).docx
Page 9 of 14
—125—
e. ACCION Texas files a petition in bankruptcy, or is adjudicated insolvent or
bankrupt.
f. If taxes owed by ACCION Texas become delinquent, and ACCI6N Texas fails
to timely and properly follow the legal procedures for protest or contest.
g. ACCI6N Texas changes the general character of business as conducted of
the date this Agreement is approved by the Corporation.
16. Notice of Default. Should the Corporation or City determine that ACCI6N Texas is
in default according to the terms of this Agreement, the Corporation or City shall notify
ACCION Texas in writing of the event of default and provide 60 days from the date of
the notice ("Cure Period") for ACCI6N Texas to cure the event of default.
17. Results of Uncured Default. After exhausting good faith attempts to address any
default during the cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of ACCION Texas, as determined by the
Board of Directors of the Corporation, the following actions must be taken for any
default that remains uncured after the Cure Period.
a. ACCION Texas shall immediately repay all funds paid by Corporation under
this. Agreement.
b. ACCION Texas shall pay Corporation reasonable attorney fees and costs of
court to collect amounts due to Corporation.
c. The Corporation shall have no further obligations to ACCI6N Texas under this
Agreement.
d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
18. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, constitutes a waiver of any subsequent breach of
the covenant or condition of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, justifies or authorizes the nonobservance on any
other occasion of the covenant or condition or any other covenant or condition of
this Agreement.
c. Any waiver or indulgence of ACCION Texas' default may not be considered
an estoppel against the Corporation.
ACCION Texas Agreement 2011 (2).docx
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—126—
d. It is expressly understood that if at any time ACCION Texas is in default in
any of its conditions or covenants of this Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Agreement on account of the default.
19. ACCION Texas specifically agrees that Corporation shall only be liable to ACCION
Texas for the actual amount of the money grants to be conveyed to ACCION Texas ,
and shall not be liable to ACCION Texas for any actual or consequential damages,
direct or indirect, interest, attorney fees, or cost of court for any act of default by
Corporation under the terms of this agreement. Payment by Corporation is strictly
limited to those funds so allocated, budgeted, and collected solely during the grant term
of this agreement, being August 1, 2010, through July 31, 2011. Corporation shall use
its best efforts to anticipate economic conditions and to budget accordingly. However, it
is further understood and agreed that, should the actual total sales tax revenue
collected for any one year be less than the total amount of grants to be paid to all
contracting parties with Corporation for that year, then in that event, all contracting
parties shall receive only their pro rata share of the available sales tax revenue for that
year, less Corporation's customary and usual costs and expenses, as compared to each
contracting parties' grant amount for that year, and Corporation shall not be liable to for
any deficiency at that time or at any time in the future. In this event, Corporation will
provide all supporting documentation, as requested. Payments to be made shall also
require a written request from ACCION Texas to be accompanied by all necessary
supporting documentation.
20. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
ACCION Texas:
ACCION Texas
Attn.: Janie Barrera
2014 Hackberry
San Antonio, Texas 78210
Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn.: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent the City at the
following address:
ACCION Texas Agreement 2011 (2).docx
Page 11 of 14
—127—
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided above.
21. Incorporation of other documents. The Corpus Christi Business and Job
Development Corporation Guidelines and Criteria for Granting Business Incentives
("Corporation Guidelines"), as amended, are incorporated into this Agreement.
22. Amendments or Modifications. No amendments or modifications to this Agreement,
may be made, nor any provision waived, unless in writing signed by a person duly
authorized to sign agreements on behalf of each party.
23. Relationship of Parties. In performing this Agreement, both the Corporation and
ACCION Texas will act in an individual capacity, and not as agents, representatives,
employees, employers, partners, joint -venturers, or associates of one another. The
employees or agents of either party may not be, nor be construed to be, the employees
or agents of the other party for any purpose.
24. Captions. The captions in this Agreement are for convenience only and are not a
part of this Agreement. The captions do not in any way limit or amplify the terms and
provisions of this Agreement.
25. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Agreement or the application of this Agreement to any
person or circumstance is, to any extent, held illegal, invalid, or unenforceable
under present or future law or by a final judgment of a court of competent
jurisdiction, then the remainder of this Agreement, or the application of the term
or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it
is the definite intent of the parties to this Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Agreement be
given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Agreement, then the remainder of this Agreement is not affected by the law, and
in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or
provision, as similar in terms to the illegal, invalid, or unenforceable clause or
provision as may be possible and be legal, valid, and enforceable, will be added
to this Agreement automatically.
ACCION Texas Agreement 2011 (2).docx
Page 12 of 14
—128—
ACCION Texas, Inc.
By:
Date:
President and Chief Executive Officer
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on , 2011, by
Janie Barrera, President and Chief Executive Officer for ACCION Texas, Inc., a Texas
non-profit corporation, on behalf of the corporation.
Nota Public
State of Texas
ACCION Texas Agreement 2011 (2).docx
Page 14of14
—129—
MARY HELEN ALVARAD
My Commission Expire.
October 12, 2012
SMALL BUSINESS INCENTIVES PROJECT SERVICE AGREEMENT
ACCION TEXAS INTEREST BUY -DOWN AND GRANT PROGRAMS FOR SMALL
BUSINESSES
This Small Business Incentives Project Service Agreement ("Project Service
Agreement") is entered into between the Corpus Christi Business and Job Development
Corporation ("Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax
for the promotion and development of new and expanded business enterprises at the
rate of one-eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corporation's Board of Directors;
WHEREAS, the Corporation exists for the purposes of encouraging and assisting
entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives, which the City Council incorporated into the City of Corpus Christi Economic
Development Incentive Policies 2009-2011 on November 17, 2009, and subsequently
the Board again amended the Corporation's Guidelines and Criteria for Granting
Business Incentives the on October 18, 2010;
WHEREAS, Section 501.073, Texas Local Government Code, requires the City Council
to approve all programs and expenditures of the corporation;
WHEREAS, ACCION Texas has submitted a proposal to the Corporation for $350,000
for the interest buy -down and grant programs for small businesses in Corpus Christi;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas, to fund the ACCION Texas interest buy -down and grant
programs; and
WHEREAS, the Corporation and ACCION Texas have executed a small business
incentives project agreement for an interest buy -down and grant programs for small
businesses.
ACCION Project Support Agreement 4A -City 07112011.docx
Page 1 of 3
—130—
In consideration of the covenants, promises, and conditions stated in this Project
Service Agreement, the Corporation and the City agree as follows:
1. Project Service Agreement to Implement Business Incentives Agreement. This
Project Service Agreement between the City and the Corporation is executed to
implement the Small Business Incentives Agreement for an Interest Buy -Down and
Grant Programs for Small Businesses between the Corporation and ACCION Texas
("Small Business Incentives Agreement").
2. Term. The term of this Project Service Agreement runs concurrently with the term of
the Small Business Incentives Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Small Business Incentives
Agreement for the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Service Agreement is the latest
date that either party executes this Agreement.
6. Amendments or Modifications. No amendments or modifications to this Project
Service Agreement may be made, nor any provision waived, unless in writing signed by
a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Service Agreement or the application of this
Project Service Agreement to any person or circumstance is, to any extent, held
illegal, invalid, or unenforceable under present or future law or by a final
judgment of a court of competent jurisdiction, then the remainder of this Project
Service Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Service Agreement, then the remainder of this Project Service Agreement is not
ACCION Project Support Agreement 4A -City 07112011.docx
Page 2 of 3
—131—
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Service Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only
and are not a part of this Project Service Agreement. The captions do not in any way
limit or amplify the terms and provisions of this Project Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Eloy Salazar
City Manager President
Date: Date:
Attest:
Armando Chapa
City Secretary
Approved as to Legal Form: July a , 2011.
R. J ming
Fir Assistant ' Attorney
for City Attorney
ACCION Project Support Agreement 4A -City 07112011.docx
Page 3 of 3
—132—
9
City
_9us
Chnsti
AGENDA MEMORANDUM
for the City Council Meeting of July 19, 2011
DATE: July 7, 2011
TO: Ronald L. Olson, City Manager
THROUGH: Rudy Garza, Interim Assistant City Manager
rudyga@cctexas.com
(361) 826-3082
FROM: Mike Culbertson, VP
Corpus Christi Regional Economic Development Corporation
mculbertson@ccredc.com
(361) 882-7448
Type A Grant for the SCORE Small Business Assistance Program
PURPOSE:
Resolution approving a Small Business Incentives Agreement between the Corpus Christi
Business and Job Development Corporation and Service Corps of Retired Executives (SCORE)
Chapter 221, which provides grants of up to $50,000, to assist small businesses and authorizing the
City Manager, or designee, to execute a Small Business Incentive Project Support Agreement with the
Corpus Christi Business and Job Development Corporation regarding implementation and
administration of the SCORE Chapter 221 Small Business Incentive Agreement.
BACKGROUND AND FINDINGS:
The Service Corps of Retired Executives (SCORE) Chapter 221 are requesting Type A funding
of $50,000 for one year to assist small and star -up businesses through workshops, assistance and
mentoring. The Type A Board has funded this initiative since 2007. SCORE has helped over hundreds
of small and start-up businesses in Corpus Christi since the beginning of this program.
ALTERNATIVES:
While SCORE does not rely on this funding, this agreement allows them to put on more
workshops, hire a marketing person, advertise, and reach many more small businesses.
OTHER CONSIDERATIONS:
—135—
FINANCIAL IMPACT:
o Not Applicable ❑ Operating Expense
❑ Revenue
Page 2 of2
❑ CIP
FISCAL YEAR: 2011
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
0
Encumbered/Expended
amount as of (DATE)
0
This item
0
50,000
50,000
BALANCE
0
0
50,000
50,000
FUND: Type A
Comments:
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to enter into a one year
Type A grant agreement with SCORE.
CONFORMITY TO CITY POLICY:
This project is consistent with the City's stated goals of promoting economic development as
stated in the City Objectives.
EMERGENCY / NON -EMERGENCY:
Non -Emergency
DEPARTMENTAL CLEARANCES:
Legal Department
Finance Department
LIST OF SUPPORTING DOCUMENTS:
Resolution
SCORE Chapter 221 Type A Agreement
Agreement between the City and the Business and Job Development Corporation
Cc: Jay Reining, First Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
—136—
Page 1 of 3
RESOLUTION
APPROVING AN AGREEMENT TO GRANT SMALL BUSINESS
INCENTIVES BETWEEN THE CORPUS CHRISTI BUSINESS
AND JOB DEVELOPMENT CORPORATION AND SCORE
CHAPTER 221, WHICH GRANTS $50,000 IN SMALL BUSINESS
INCENTIVES FOR THE OPERATION OF A PROGRAM TO
ASSIST SMALL AND START-UP BUSINESSES IN CORPUS
CHRISTI AND AUTHORIZING THE CITY MANAGER OR HIS
DESIGNEE TO EXECUTE A SMALL BUSINESS INCENTIVES
PROJECT SUPPORT AGREEMENT WITH THE CORPUS
CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION
REGARDING IMPLEMENTATION AND ADMINISTRATION OF
THE AGREEMENT TO GRANT SMALL BUSINESS INCENTIVES
WHEREAS, there is a need for an agreement to grant small business incentives
for small business assistance between the Corpus Christi Business and Job
Development Corporation and SCORE Chapter 221 (SCORE), which grants
$50,000 in business incentives to SCORE for a program to assist small and start-
up businesses in Corpus Christi;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That the agreement to grant small business incentives for small
business assistance between the Corpus Christi Business and Job Development
Corporation and SCORE Chapter 221, which is attached to this resolution as
Exhibit A, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute the
small business incentives project support agreement between the City of Corpus
Christi and the Corpus Christi Business and Job Development Corporation for
the implementation and administration of the agreement to grant small business
incentives for small business assistance with SCORE Chapter 221, which is
attached to this resolution as Exhibit B.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
4ARes-SCORE Incentives 07112011.docx
—137—
Joe Adame
Mayor
APPROVED as to form: .Jay , 2011
R. Jay R
First sista'nt City Attorney
For the City Attorney
4ARes-SCORE Incentives 07112011.docx
-138-
Page 2 of 3
Corpus Christi, Texas
of , 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
4ARes-SCORE Incentives 07112011.docx
—139—
Page 3 of 3
AGREEMENT TO GRANT SMALL BUSINESS INCENTIVES TO
SCORE CHAPTER 221
FOR SMALL BUSINESS ASSISTANCE
This Agreement to Grant Small Business Incentives for Small Business Assistance
("Agreement") is entered into by and between the Corpus Christi Business and Job
Development Corporation ("Corporation"), a Texas non-profit corporation, organized
under V.A.C.S, Sec. 4A., Art. 5190.6 (Development Corporation Act of 1979), now
codified as Subtitle C1, Title 12, Texas Local Government Code„ with mailing address
of 1201 Leopard Street, Corpus Christi, Texas, 78401, and SCORE Chapter 221,
("SCORE "), a nonprofit association, with principal place of business at 3649 Leopard
Street, Suite 411, Corpus Christi, Texas 78408.
I. BACKGROUND
1.1. Purpose of Agreement. Corporation is a tax -supported non-profit corporation,
whose primary income is from sales tax collected within the City of Corpus Christi and
dedicated exclusively to economic development. This sales tax supporting Corporation
was authorized as a local option under Texas Revised Civil Statutes, Sec. 4A, Art.
5190.6. The Corporation exists for the primary purpose of developing, stabilizing,
diversifying, and expanding the Corpus Christi economy through the retention,
expansion, and recruitment of employment opportunities in order to benefit the citizens
of Corpus Christi and the surrounding areas.
1.2. Project. The project and performance requirement to be implemented by means
of this agreement are generally described as, follows:
1. SCORE will provide assistance to small businesses and persons and entities
desiring to begin and operate a small business in Corpus Christi by mentoring
clients; conducting workshops; and advising clients as to business plans, pro -
formas, forms of business entity, financial implications, and all other aspects of
small business operations.
2. SCORE will retain an executive assistant/coordinator to assist the SCORE
volunteers in administering the assistance program. SCORE will engage in a
limited advertising campaign to publicize the assistance program.
3. The performance requirements shall be continuously maintained during the
entire term of this agreement.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants,
warranties, and agreements of the parties, it is agreed as follows:
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I1. ECONOMIC BENEFITS AND INCENTIVES AND PERFORMANCE
REQUIREMENTS
2.1. BY THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION
1. Money Grant:
1. Corporation will reimburse SCORE by grant for all direct expenses
related to the project. The total reimbursements may not exceed Fifty
Thousand Dollars ($50,000.00), subject to the performance requirements
of SCORE and the conditions precedent set forth in Schedule A.
2. Failure by Corporation to timely reimburse SCORE is an act of default
by Corporation giving SCORE. As its sole remedy is the right to be
reimbursement of the contracted amount, which is further limited to the
terms and conditions contained in Article VII, paragraph 7.1, of this
agreement.
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SCHEDULE A
SCORE's CONDITIONS
PRECEDENT AND
PERFORMANCE
REQUIREMENTS
SCORE's TIME OF
PERFORMANCE
CORPORATION's
PERFORMANCE
REQUIREMENTS
1. Employment of a
August 1, 2011 through
Reimbursement of SCORE
contract executive
July 31, 2012
expenses up to a total of
assistant/ coordinator, with
$50,000, payable within 45
an average annual salary of
days of invoicing for
$25,000, to assist the
expenses under this
SCORE volunteers to
provide assistance to small
businesses and persons
and entities desiring to
begin and operate a small
business in Corpus Christi.
agreement.
2. SCORE volunteers to
provide assistance to small
businesses and persons
and entities desiring to
begin and operate a small
business in Corpus Christi
by:
a. Mentoring clients.
b. Conducting workshops.
c. Advising clients as to
business plans, pro -formas,
form of business entity,
financial implications, and
all other aspects of small
business operations.
d. Conducting a limited
advertising campaign to
publicize the assistance
program to small
businesses.
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2.2. BY SCORE
1. Investment—Facility: SCORE is not required to make a capital investment,
however SCORE shall perform the performance requirements as set forth in
Schedule B.
SCHEDULE B
SCORE's PERFORMANCE
REQUIREMENTS
SCORE's TIME OF PERFORMANCE
Providing 1,620 hours of general and
technical services to small businesses
through volunteer counselors.
Beginning August 1, 2011 and continuing
until July 31, 2012.
2. Employment: SCORE shall comply with the employment requirements set
forth in Schedule C.
SCHEDULE C
SCORE's PERFORMANCE
REQUIREMENTS
SCORE's TIME OF PERFORMANCE
Maintain not less than one contract
executive assistant/coordinator position
with an average annual salary of $25,000.
July 31, 2012
3. Failure by SCORE to timely and fully comply and to continue to comply with
any performance requirements of this paragraph is an act of default.
III. REPORTING AND MONITORING
3.1. Reports and Monitoring: SCORE agrees to the following reporting and
monitoring provisions, and failure to fully and timely comply with any one requirement is
an act of default.
1. SCORE shall provide an annual report certifying the status of compliance
through the life of the agreement. In addition to the annual report, SCORE shall
submit a quarterly report to document the jobs created. The quarterly report may
be in the form of quarterly IRS 941 returns, SCORE employer Quarterly Reports,
or employee rosters that show the hours worked and the positions filled, and
other reports as may reasonably be required.
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2. SCORE shall provide quarterly reports on its performance requirements. The
reports must document:
1. Number of face to face consultations between SCORE volunteers and
small business owners or prospective owners.
2. Number of workshops with description of workshop and number of
attendees.
3. Number of small business owners or prospective owners who were
provided counseling by email or on-line services.
3. SCORE, during normal working hours, at its Corpus Christi, Texas, facility,
shall allow Corporation and its designee, the City's Economic Development
Department ("Department"), reasonable access to SCORE's employment records
and books, to verify employment and all other relevant records related to each of
the other economic development considerations and incentives, as stated in this
agreement, but the confidentiality of records and information shall be maintained
by Corporation and Department, unless the records and information shall be
required by a court order, a lawfully issued subpoena, or at the direction of the
Office of the Texas Attorney General.
IV, COVENANTS, WARRANTIES, OBLIGATIONS AND DUTIES
4.1. SCORE makes the following covenants and warranties to Corporation, and agrees
to timely and fully perform the following obligations and duties. Any false or
substantially misleading statement contained in this agreement or SCORE's request for
funding, or any failure to timely and fully perform the performance requirements in this
agreement is an act of default by SCORE. Failure to comply with any one covenant or
warranty is an act of default by SCORE.
1. SCORE is duly organized, validly existing, and in good standing and
authorized to do business in the State of Texas, under the laws of the State of
Texas, has all power and authority to carry on its business as presently
conducted in Corpus Christi, Texas.
2. The execution of this agreement has been duly authorized by SCORE's board
of directors; the officer signing this agreement is an officer of the organization,
empowered to execute the agreement and bind the organization; the
authorization, signing, and binding effect is not in contravention of any law, rule,
regulation, or the provisions of SCORE's by-laws, or of any agreement or
instrument to which SCORE is a party or by which it may be bound; the authority
to be evidenced by an organizational resolution, attached to this agreement at
the time of execution.
3. SCORE has the authority to enter into and perform, and will perform, the
terms of this Agreement.
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4. SCORE has timely filed and will timely file all local, State, and Federal tax
reports and returns required by law to be filed and all taxes, assessments, fees,
and other governmental charges, including applicable ad valorem and
employment taxes, have been timely paid, and will be timely paid, during the
term of this Agreement.
5. No litigation or governmental proceeding is pending or, to the knowledge of
SCORE or SCORE's officers, threatened against or affecting SCORE that may
result in any material adverse change in SCORE's business, properties, or
operations. No consent, approval or authorization of or registration or declaration
within any governmental authority is required in connection with the execution of
this agreement or the transactions contemplated hereby.
5. No certificate, statement, or information provided by SCORE to Corporation or
the City of Corpus Christi in connection with any transaction contemplated by this
agreement, contains any untrue statements or fails to state any fact necessary to
keep the statements contained in the statement from being misleading.
6. To the best of its knowledge, SCORE has acquired and maintained all
necessary rights, licenses, permits, and authority to carry on its business
operations in Corpus Christi, Texas, and will continue to use its best efforts to
maintain all necessary rights, licenses, permits, and authority.
7. The funds granted in this agreement must be utilized solely for the purpose:
1. Offsetting the cost of creating and maintaining the one (1) contract
employment position at SCORE's Corpus Christi facility.
2. Assisting small businesses and persons and entities desiring to begin
and operate a small business in Corpus Christi by:
1. Mentoring clients.
2. Conducting workshops.
3. Advising clients as to business plans, pro formas, form of
business entity, financial implications, and all other aspects of small
business operations.
3. Conducting a limited advertising campaign to publicize the assistance
program to small businesses.
8. SCORE shall continue its full-time business activities on its property in Corpus
Christi, Texas, including maintaining its employment and investment
requirements at all times throughout the term of this agreement.
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9. SCORE shall complete the project required by this Agreement, and shall
provide and staff the required employment positions, investment, and other
economic development considerations described in this Agreement.
10. SCORE shall timely and fully comply with all of the terms and conditions of
this Agreement.
11. SCORE shall notify Corporation in writing of substantial changes in
management within seven (7) days. Substantial changes mean changes in
Chairman of the Board, President, C.E.O., or area management.
12. SCORE has access to the Texas Development Corporation Act, Title 12,
Subtitle C1 (Chapters 501 - 507), Texas Local Government Code, on the State's
website, and acknowledges that the funds granted in this Agreement must be
utilized solely for purposes authorized under State law and by the terms of this
Agreement.
13. In the event it is determined by Corporation or City of Corpus Christi that
funds provided under this Agreement were not used in accordance with State
law, then SCORE agrees to repay the funds to the Corporation within 30 days of
written notice requesting reimbursement.
14. If an audit determines that the funds were not used for authorized purposes,
SCORE agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
15. There are no bankruptcy proceedings currently pending concerning SCORE,
nor are any proceedings contemplated by SCORE, as of the date of execution of
this Agreement by SCORE.
16. SCORE will not discriminate nor permit discrimination against any person or
group of persons, with regard to employment and the provision of services at, on,
or in the Facility, on the grounds of race, religion, national origin, marital status,
sex, age, disability, or in any manner prohibited by the laws of the United States
or the State of Texas.
17. SCORE agrees to provide information, reports, or statements respecting its
business operations and financial condition as Corporation may reasonably
request from time to time.
4.2. All representations, warranties, covenants and agreements of the parties, as well
as any rights and benefits of the parties pertaining to the transaction contemplated
hereby, shall survive the original execution date of this agreement.
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V. SUSPENSIONS/TERMINATIONS
5.1. Corporation, under the following circumstances, and at its sole discretion, may
suspend its obligations under this agreement or terminate this agreement and recapture
from SCORE any of the money grants or consideration paid by Corporation to SCORE,
without liability to SCORE, upon any one of the following events, which are an act of
default.
1. The appointment of a receiver of SCORE, or of all or any substantial part of its
property, and the failure of the receiver to be discharged within sixty (60) days
thereafter.
2. The adjudication of SCORE as bankrupt.
3. The filing by SCORE of a petition or an answer seeking bankruptcy,
receivership, reorganization, or admitting the material allegations of a petition
filed against it in any bankruptcy or reorganization proceeding.
VI. DEFAULT
6.1. Events of Default. Should SCORE fail to timely, fully, and completely comply with
any one or more of the requirements, obligations, duties, terms, conditions or warranties
of this agreement the failure shall be an act of default by SCORE and, if not fully and
completely cured and corrected within sixty (60) days after written notice to do so,
Corporation may terminate this agreement and pursue all legal remedies as provided by
law, provided however that SCORE's liability under this agreement shall be limited to
the recapture from SCORE any of the money grants or consideration paid by
Corporation to SCORE under this agreement. Corporation shall not be liable to SCORE
for any alleged consequential damages. Additionally, the following events shall
constitute a default of this Agreement:
1. The Corporation or City determines that any representation or warranty on
behalf of SCORE contained in this Agreement or in any financial statement,
certificate, report, or opinion submitted to the Corporation in connection with this
Agreement was incorrect or misleading in any material respect when made;
2. Any judgment is assessed against SCORE or any attachment or other levy
against the property of SCORE with respect to a claim remains unpaid,
undischarged, or not dismissed for a period of 30 days.
3. If taxes on the Facility become delinquent, and SCORE fails to timely and
properly follow the legal procedures for protest or contest.
4. SCORE changes the general character of business as conducted of the date
this Agreement is approved by the Corporation.
6.2. In the event of unforeseeable third party delays in the performance of this
Agreement or force majeure and upon a reasonable showing by SCORE that it has
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immediately and in good faith commenced and is diligently and continuously pursuing
the correction, removal, or abatement of delays by using its best efforts, Corporation
may consent to and excuse delays, which consent and excuse shall not be
unreasonably withheld. Failure by SCORE to use its best efforts as required in this
paragraph shall be an act of default. Force majeure means severe weather, such as
tornadoes or flooding, named storms or hurricanes, wars, riots, and the unavailability of
necessary and essential equipment and supplies from all sources.
6.3. Any delay for any amount of time by Corporation in providing notice of default to
SCORE shall in no event be deemed or constitute a waiver of the default by Corporation
of its rights and remedies available under this agreement, or in law or equity.
6.4. Any waiver granted by Corporation to SCORE of any covenant or condition, the
breach of any covenant or condition of this Agreement, or of an act of default shall not
be deemed or constitute a waiver of any other existing or future breach of a covenant or
condition, or act of default by SCORE or of a subsequent breach of the same covenant
or condition or act of default of the same act or event by SCORE.
6.5. No waiver of any covenant or condition, or the breach of any covenant or condition
of this Agreement, justifies or authorizes the nonobservance on any other occasion of
the covenant or condition or any other covenant or condition of this Agreement.
6.6. Any waiver or indulgence of SCORE's default may not be considered an estoppel
against the Corporation.
6.7. Results of Uncured Default. After exhausting good faith attempts to address any
default during the Cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of SCORE, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period:
1. SCORE shall pay Corporation reasonable attorney fees and costs of court to
collect amounts due to Corporation.
2. The Corporation shall have no further obligations to SCORE under this
Agreement.
3. Neither the City nor the Corporation may be held liable for any consequential
damages.
4. The Corporation may pursue all remedies available under law.
6.8. SCORE shall give Corporation written notice of any act of default by Corporation,
and Corporation shall have thirty (30) days after receipt of the notice to cure the default.
Failure by Corporation to timely and fully cure the act of default shall permit SCORE to
pursue its legal remedies as provided in this agreement.
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VII. CORPORATION'S LIABILITY LIMITATIONS
7.1. Payments: SCORE specifically agrees that Corporation shall only be liable to
SCORE for the actual amount of the money grants to be conveyed to SCORE, and shall
not be liable to SCORE for any other actual or consequential damages, direct or
indirect, interest, attorney fees, or costs of court for any act of default by Corporation
under the terms of this agreement. It is further specifically agreed that Corporation shall
only be required to pay the grant amounts solely out of its sales tax revenue currently
collected, allocated, and budgeted and to be allocated, budgeted and collected for
SCORE during the term of this agreement. Payment by Corporation is strictly limited to
those funds so allocated, budgeted, and collected solely during the grant term of this
agreement, being August 1, 2011, through July 31, 2012. Corporation shall use its best
efforts to anticipate economic conditions and to budget accordingly. However, it is
further understood and agreed that, should the actual total sales tax revenue collected
for any one year be less than the total amount of grants to be paid to all contracting
parties with Corporation for that year, then in that event, all contracting parties shall
receive only their pro rata share of the available sales tax revenue for that year, Tess
Corporation's customary and usual costs and expenses, as compared to each
contracting parties' grant amount for that year, and Corporation shall not be liable to
SCORE for any deficiency at that time or at any time in the future. In this event,
Corporation will provide all supporting documentation, as requested. Payments to be
made to SCORE shall also require a written request from SCORE to be accompanied
by all necessary supporting documentation. Corporation shall have forty-five (45) days
to make payment after receipt of the payment request. The payment request should be
directed to the address provided for Corporation below.
VIII. DEFINITIONS
As used in this agreement, the following words or phrases shall have the following
meanings:
8.1. City of Corpus Christi or City means the governing municipal corporation and the
area that is within the city limits of the City of Corpus Christi, Texas.
8.2. Compliance means timely, fully, and completely performing or meeting each and
every requirement, obligation, duty, condition, or warranty as stated in this agreement.
Compliance means complete compliance and does not mean substantial compliance.
8.3. Act of Default means failure to timely and fully comply with one or more
requirements, obligations, duties, terms, conditions, or warranties, as stated in this
agreement. Corporation may, in its sole discretion, accept substantial compliance in
lieu of full compliance by waiving the act of default solely by an instrument in writing.
8.4. Insolvent means failure to timely pay debts in the ordinary course of business or
cannot pay debts as they become due, or is insolvent within the meaning of the federal
bankruptcy law.
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8.5. Force Majeure means severe weather, such as tornadoes, flooding, named
storms, hurricanes, wars, riots, and the unavailability of necessary and essential
equipment and supplies from all sources.
IX. GENERAL TERMS
9.1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement.
9.2. Term. The term of this Agreement is expires on July 31, 2012. This agreement
may be renewed for an additional one year period upon mutual consent of both parties,
and the availability of Corporation funds that have been authorized for this purpose.
9.3. Termination. This Agreement may be terminated by mutual agreement of the
parties or by either party, upon the failure of the other party to fulfill an obligation, as set
forth in this agreement. The termination of this Agreement extinguishes all rights,
duties, obligations, and liabilities of the parties under this Agreement, except all rights,
duties, liabilities, and obligations accrued prior to the termination shall survive
termination.
9.4. Compliance with Laws. This Agreement is subject to all legal requirements in the
City Charter and Code of Ordinances of the City of Corpus Christi and all other
applicable county, state, and federal laws. SCORE shall observe and obey all
applicable laws, ordinances, regulations, and rules of the Federal, State, County, and
City governments, as may be amended or enacted. This Agreement shall be governed
by and construed in accordance with the laws and court decisions of the State of Texas.
9.5. Assignment. This Agreement is binding upon the parties to this agreement and
their successors and assigns. However, SCORE may not assign all or any part of its
rights, privileges, or duties under this Agreement without the prior written approval of the
Corporation and City. Any attempted assignment without approval is void, and
constitutes a breach of this Agreement.
9.6. Indemnity. SCORE covenants to fully indemnify, save, and hold
harmless the Corporation, the City, their respective officers,
employees, and agents ("Indemnitees') against all liability, damage,
loss, claims, demands, and actions of any kind on account of
personal injuries (including, without limiting the foregoing, workers'
compensation and death claims), or property loss or damage of any
kind, which arise out of or are in any manner connected with, or are
claimed to arise out of or be in any manner connected with SCORE
activities conducted under or incidental to this Agreement, including
any injury, loss or damage caused by the sole or contributory
negligence of any or all of the Indemnitees. SCORE must, at its own
expense, investigate all those claims and demands, attend to their
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settlement or other disposition, defend all actions based on those
claims and demands with counsel satisfactory to Indemnitees, and
pay all charges of attorneys and all other costs and expenses of any
kind arising from the liability, damage, loss, claims, demands, or
actions.
9.7. Buy Local Provision. SCORE agrees to use its best efforts to give preference and
priority to local manufacturers, suppliers, contractors, and labor, except where not
reasonably possible to do so without added expense, substantial inconvenience, or
sacrifice in operating efficiency. For the purposes of this section, the term 'local" as
used to describe manufacturers, suppliers, contractors, and labor includes firms,
businesses, and persons who reside in or maintain an office within a 50 -mile radius of
Nueces County.
9.8. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
SCORE Chapter 221:
SCORE
c/o. Ben F. McDonald
3649 Leopard St., Suite 411
Corpus Christi, Texas 78408
Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas. 78401
b. A copy of all notices and correspondence must be sent to the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas. 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided above.
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9.9. Incorporation of other documents.
a. The Corpus Christi Business & Job Development Corporation Guidelines &
Criteria for Granting Business Incentives ("Corporation Guidelines"), adopted
September 18, 2007, are incorporated into this Agreement.
b. SCORE application submitted to the Corporation for business incentives
("Application") is incorporated into this Agreement.
c. If there is any conflict in the terms of these documents, the following order
controls: (i) This Agreement, (ii) Corporation Guidelines, (iii) Application.
9.10. Amendments or Modifications. No amendments or modifications to this
Agreement may be made, nor any provision waived, unless in writing signed by a
person duly authorized to sign agreements on behalf of each party.
9.11. Relationship of Parties. In performing this Agreement, both the Corporation and
SCORE will act in an individual capacity, and not as agents, representatives,
employees, employers, partners, joint -venturers, or associates of one another. The
employees or agents of either party may not be, nor be construed to be, the employees
or agents of the other party for any purpose.
9.12. Captions. The captions in this Agreement are for convenience only and are not a
part of this Agreement. The captions do not in any way limit or amplify the terms and
provisions of this Agreement.
9.13. Severability.
1. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Agreement or the application of this Agreement to any
person or circumstance is, to any extent, held illegal, invalid, or unenforceable
under present or future law or by a final judgment of a court of competent
jurisdiction, then the remainder of this Agreement, or the application of the term
or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it
is the definite intent of the parties to this Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Agreement be
given full force and effect for its purpose.
2. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Agreement, then the remainder of this Agreement is not affected by the law, and
in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or
provision, as similar in terms to the illegal, invalid, or unenforceable clause or
provision as may be possible and be legal, valid, and enforceable, will be added
to this Agreement automatically.
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9.14. Venue. Venue for any legal action related to this Agreement is in Nueces
County, Texas. SCORE consents to, and waives any objections to, in personum
jurisdiction in Nueces County, Texas. This agreement and the relationship between
Corporation and SCORE shall be governed and interpreted under the laws of the State
of Texas without regard to any conflict of laws or provisions.
9.15. Sole Agreement. This Agreement constitutes the sole agreement between the
Corporation and SCORE. Any prior agreements, promises, negotiations, or
representations, verbal or otherwise, not expressly stated in this Agreement, are of no
force and effect. Except as otherwise provided in this agreement, this Agreement
cannot be modified or amended without a written agreement of the parties.
9.16. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original and constitute one and the same instrument.
9.17. Representation. Corporation represents that no Corporation board member or
employee, City of Corpus Christi officer or employee, has been or will be compensated
in any manner with respect to directly or indirectly bringing the parties hereto together,
agreement negotiations, or the entering into of this Agreement. In no event will SCORE
pay a fee to or in any manner compensate any Corporation board member or employee,
City of Corpus Christi officer or employee, in connection with the acceptance of this
Agreement. A breach of this provision (10.17) shall result in automatic and immediate
termination of this Agreement, and shall be an act of default by SCORE.
9.18. Other Contracts. It is understood by SCORE that Corporation has heretofore
entered, and may hereafter enter, into contracts with other companies or persons upon
terms and conditions different from the terms and conditions of this Agreement, and
SCORE has no standing to object whatsoever to any contracts or require any
modifications or changes to its Agreement due to other agreements.
9.19. Corporation, its officers and employees, and its agents or contractors retained to
perform economic development services for Corporation, shall treat as confidential the
financial statements of SCORE and shall not release the information to the public,
unless required by law or court order. Corporation shall immediately notify SCORE of
requests or court orders to release the information.
9.20. All representations, warranties, covenants and agreements of the parties, as well
as any rights and benefits of the parties pertaining to the transaction contemplated
hereby, shall survive the original execution date of this agreement.
9.21. Renewal. This Agreement may be renewed for an additional one year term upon
mutual agreement of the parties hereto.
EXECUTED on the date shown under the signature of each party.
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Corpus Christi Business & Job Development Corporation
By:
Date:
Attest
By:
Eloy Salazar
Chairperson
Armando Chapa
Assistant Secretary
SCORE Chapter 221
By: Woo. S r--ila \..) r
Robert Browning
President
Date: I - ^a' ` I I
State of Texas§
County of Nueces§
Before me on this day, Robert Browning, President, SCORE Chapter 221, personally
appeared, known to me to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed this agreement stated as the act
of SCORE, for the purposes and consideration expressed in the instrument.
Given under my hand and seal of office this the
ANGIE L CUEVAS
Notary Public, State of Teas
Nl' Edon Eq*es 0342013
day of
, 2011.
Lao -
Notary !»blic, State of Texas
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SMALL BUSINESS INCENTIVES PROJECT SUPPORT AGREEMENT
SCORE CHAPTER 221
FOR SMALL BUSINESS ASSISTANCE
This Small Business Incentives Project Support Agreement ("Project Support
Agreement") is entered into between the Corpus Christi Business and Job Development
Corporation ("Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax
for the promotion and development of new and expanded business enterprises at the
rate of one-eighth of one percent to be imposed for 15 years;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives, which the City Council incorporated into the City of Corpus Christi Economic
Development Incentive Policies 2009-2011 on November 17, 2009, and subsequently
the Board again amended the Corporation's Guidelines and Criteria for Granting
Business Incentives the on October 18, 2010;
WHEREAS, the Corporation exists for the purposes of encouraging and assisting
entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, Section 501.073, Texas Local Government Code, requires the City Council
to approve all programs and expenditures of the corporation;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Business Incentives on September 18, 2007, which the City
Council incorporated into the City of Corpus Christi Economic Development Incentive
Policies 2009-2011 on November 17, 2009;
WHEREAS, SCORE Chapter 221 has submitted a proposal to the Corporation to
request small business incentives of approximately $50,000 to be used to assist
SCORE Chapter 221 in its operation of its program to assist small business employers
in the City of Corpus Christi;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas that business incentives be offered to SCORE Chapter 221; and
WHEREAS, the Corporation and SCORE Chapter 221 have executed an Agreement to
Grant Small Business Incentives to SCORE Chapter 221 for the creation of jobs to
assist small business employers ("Small Business Incentives Agreement").
4ASCORE Project Agreement 4A -City 07112011.docx
Page 1 of 3
—155—
In consideration of the covenants, promises, and conditions stated in this Project
Support Agreement, the Corporation and the City agree as follows:
1. Project Support Agreement to Implement Small Business Incentives
Agreement. This Project Support Agreement between the City and the Corporation is
executed to implement the Agreement to Grant Small Business Incentives to SCORE
Chapter 221 for small business assistance between the Corporation and SCORE
Chapter 221.
2. Term. The term of this Project Support Agreement runs concurrently with the term
of the Small Business Incentives Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Small Business Incentives
Agreement for the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Support Agreement is the latest
date that either party executes this Agreement.
6. Amendments or Modifications. No amendments or modifications to this Project
Support Agreement may be made, nor any provision waived, unless in writing signed by
a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Support Agreement or the application of this
Project Support Agreement to any person or circumstance is, to any extent, held
illegal, invalid, or unenforceable under present or future law or by a final
judgment of a court of competent jurisdiction, then the remainder of this Project
Support Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Support Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Support
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Support Agreement, then the remainder of this Project Support Agreement is not
4ASCORE Project Agreement 4A -City 07112011.docx
Page 2 of 3
—156—
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Support Agreement automatically.
8. Captions. The captions in this Project Support Agreement are for convenience only
and are not a part of this Small Business Incentives Project Support Agreement. The
captions do not in any way limit or amplify the terms and provisions of this Project
Support Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Eloy Salazar
City Manager President
Date: Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form this /3 day of ,/v6 , 2011.
R. Jay a ding
Fir ssistant C,i#y Attorney
for City Attorney
4ASCORE Project Agreement 4A -City 07112011.docx
Page 3 of 3
—157—
10
NO ATTACHMENT FOR THIS ITEM
-161-
11
JONCity of
Corpus
Chnsti
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: July 21, 2011
TO: Ronald L. Olson, City Manager
FROM: Eddie Houlihan, Assistant Director, Management & Budget
edd iehoacctexas.com
826-3792
Adoption of the City of Corpus Christi FY 2012 Budget and ratifying increase
of $1,058,875 in property tax revenues from last year's operating budget.
PURPOSE:
A. Ordinance adopting the City of Corpus Christi budget for the ensuing fiscal year beginning August 1,
2011; to be filed with the County Clerk; appropriating monies as provided in the budget; and providing for
severance.
B. Ordinance to ratify increase of $1,058,875 in property tax revenues from last year's operating budget as
reflected in the 2011-2012 operating budget.
FINANCIAL IMPACT:
(Fill out chart - see instructions below)
o Not Applicable x Operating Expense x Revenue
❑ CIP
FISCAL YEAR:
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
662,453,261
Encumbered/Expended
amount as of 7/31/2011
0
0
This item
0
0
0
BALANCE
0
0
662,453,261
0
Comments: (Briefly describe financial impact of item)
Total proposed expenditures are $662,453,261 and total proposed revenues are $681,126,676 which
includes an increase of $1,058,875 in property tax revenues over the prior year.
RECOMMENDATION:
Approval of Ordinance as submitted.
—165—
CONFORMITY TO CITY POLICY:
The Local Government Code now requires municipalities to ratify any increases in property tax
revenues from the previous year. The attached Ordinance complies with the new requirement.
EMERGENCY / NON -EMERGENCY:
Item requires two readings. Second Reading is scheduled on July 26, 2011.
DEPARTMENTAL CLEARANCES:
N/A
LIST OF SUPPORTING DOCUMENTS:
Ordinance adopting budget
Ordinance ratifying increase in property tax
Attachment A — Schedule of Adjustments
Cc: Lisa Aguilar, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Oscar Martinez, Assistant City Manager
-1 6 6-
Attachment A - Schedule of Adjustments
City of Corpus Christi
Amendment to the FY 2011-2012 Proposed Budget
TOTAL PROPOSED REVENUES 681,189,756
TOTAL PROPOSED EXPENDITURES 662,056,341
General Fund Fund 1020
Proposed Expenditures $ 197,625,968
Adjustments:
Increase MHMR 54,000
Decrease Reserve Appropriation (54,000)
Total Adjusted Expenditures $ 197,625,968
Hotel Occupancy Tax Fund 1030
Proposed Expenditures $ 10,366,857
Adiustments:
Increase Art Museum of South Texas 170,000
Increase Botanical Gardens 20,000
Increase Beach Cleaning 270,000
Total Adjusted Expenditures $ 10,826,857
Crime Control & Prevention District Fund - 9010
Proposed Expenditures $ 5,311,145
Adjustments:
Decrease Grafitti Eradication Program (63,080)
Total Adjusted Expenditures $ 5,248,065
Proposed Revenues Adjustments:
Reduce CCPD Sales Tax
Total Adjusted Revenues
$ 5,462,211
(63,080)
$ 5,399,131
TOTAL AMENDED PROPOSED REVENUES
TOTAL AMENDED PROPOSED EXPENDITURES
-167-
681,126,676
662,453,261
AN ORDINANCE
ADOPTING THE CITY OF CORPUS CHRISTI BUDGET FOR THE ENSUING
FISCAL YEAR BEGINNING AUGUST 1, 2011; TO BE FILED WITH THE COUNTY
CLERK; APPROPRIATING MONIES AS PROVIDED IN THE BUDGET; AND
PROVIDING FOR SEVERANCE.
WHEREAS, the City Manager of the City of Corpus Christi (City), pursuant to Article IV, Section
2 of the City Charter, did submit to the City Council a budget proposal (Budget Proposal) of the
revenues of the City, and the expenses of conducting the affairs thereof for the ensuing fiscal
year beginning August 1, 2011, and ending July 31, 2012, and which Budget Proposal had
been compiled from detailed information from the several departments, divisions, offices of the
City, in accordance with the City Charter provision referenced above; and
WHEREAS, the members of the City Council have received and studied the City Manager' s
Budget Proposal and have called and held the proper hearing in accordance with Section
102.006, Texas Local Government Code, on the Budget Proposal; and
WHEREAS, pursuant to Section 2(f), Article IV, of the City Charter of the City of Corpus Christi,
Texas, the City Council must appropriate such sums of money as provided in the Budget.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That the Budget of the City of Corpus Christi, covering proposed expenditures
amounting to $663,265,261 and estimated revenues amounting to $682,336,676 for the Fiscal
Year beginning August 1, 2011, and ending July 31, 2012, as submitted by the City Manager,
with modifications directed by the City Council and recorded in its minutes being incorporated
by reference, is adopted.
SECTION 2. That upon the passage of this ordinance certain sums of money from all sources
of City revenues, as described in the Budget, shall be and they are appropriated to cover the
sums for expenditures and investments as provided for each of the several funds in the Budget,
as modified by the City Council. Notwithstanding any other provision to the contrary, the City
Manager is authorized to make transfers within departments, divisions, purposes, or funds,
provided it is in accordance with applicable law.
SECTION 3. Police Officer Positions
The number of positions budgeted for each police officer classification in the Police Department
shall be:
H:\LEG-DIR\Lisa\2011 Ordinance \FY11-12 Budgetv2 July 19.doc
—168—
Police officer and senior police officer - 391*
Police Lieutenant - 37
Police Captain - 15
Police Commander - 5
Assistant Police Chief - 2
Police Chief - 1
FY11-12 TOTAL 451
* These positions are interchangeable. Any police officer may become a senior police
officer after 60 months' service by passing a pass/fail exam. This number may be
temporarily increased by graduates from a police academy authorized by the City
Manager, which temporary increase shall be reduced to authorized strength through
attrition.
SECTION 4. Firefighter Positions
The number of positions budgeted for each firefighter classification in the Fire
Department shall be:
Firefighter - 134*
Firefighter II —EMS — 109
Firefighter II — Engineer - 73
Fire Captain - 82
Battalion Chief - 10
Assistant Fire Chief - 4
Deputy Fire Chief - 1
Fire Chief - 1
FY11-12 TOTAL 414
*This number may be temporarily increased by graduates from a fire academy
authorized by the City Manager, which temporary increase shall be reduced to
authorized strength through attrition.
SECTION 5. That upon final passage of this budget ordinance, a true certified copy of
this same ordinance shall be transmitted by the City Manager to the County Clerk of
Nueces County, Texas, pursuant to Section 102.011, Texas Local Government Code.
The budget shall also be part of the archives of the City.
SECTION 6. 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 in this ordinance be given full force and effect for its purpose.
H:\LEG-DIR\Lisa\2011 Ordinance\FY11-12 Budgetv2 July 19.doc
—169—
That the foregoing orcjinapce was read for the first time and passed to its second
reading on this the
Joe Adame
Chris N. Adler
Larry Elizondo
Kevin Kieschnick
Priscilla G. Leal
day of ottatO-- , 2011, by the following vote:
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
That the foregoing ordinance was read for the second time and passed finally on this
the day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry Elizondo Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla G. Leal
PASSED AND APPROVED, this the day of , 2011.
ATTEST:
Armando Chapa
City Secretary
APPROVED as to form: July 15, 2011
By: aa—n"
Lisa Agu'i r A Assistant City Attorney
for the City Attorney
Joe Adame
Mayor
—170—
ORDINANCE
TO RATIFY INCREASE OF $1,058,875 IN PROPERTY TAX
REVENUES FROM LAST YEAR'S OPERATING BUDGET AS
REFLECTED IN THE 2011-2012 OPERATING BUDGET.
Whereas, Section 102.007 (c) of the Texas Local Government Code provides
that adoption of a budget that will require raising more revenue from property
taxes than in the previous year requires a separate vote of the governing body to
ratify the property tax increase reflected in the budget and that a vote under this
subsection is in addition to and separate from the vote to adopt the budget or a
vote to set the tax rate;
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That the City Council ratifies the increase of $1,058,875 in property
tax revenues from last year's operating budget as reflected in the 2011-2012
Operating Budget.
—171—
That the foregoing ordinance was read for th first time and passed to its second
reading on this the /9 /day" of , 2011, by the following vote:
airy Joe Adame avid Loeb r')Q ,
John E. Marez airy
Chris N. Adler
Larry Elizondo
Kevin Kieschnick
Priscilla G. Leal
ayi
Nelda Martinez 4u ,
Mark Scott (1,
That the foregoing ordinance was read for the second time and passed finally on this
the day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry Elizondo Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla G. Leal
PASSED AND APPROVED, this the day of , 2011.
ATTEST:
Armando Chapa Joe Adame
City Secretary Mayor
APPROVEDpas to form: July 19, 2011
By: tC
Lisa Aguil ssistant City Attorney
for the Cit ttorney
—172—
12
City of
Corpus
= Chnsti
AGENDA MEMORANDUM
for the City Council Meeting of July 12, 2011
DATE: July 7, 2011
TO: Ronald L. Olson, City Manager
FROM: Joan McKaughan, Interim Director of Human Resource
joanm@cctexas.com
361-826-3306
PURPOSE
Annual review of Chapter 39 Article III Personnel Ordinance completed. Revisions
to Executive Pay Plan, Vacation Leave Cash -In, Sick Leave Cash-In,'and Personal
Leave provisions.
AMENDING CODE OF ORDINANCES, CHAPTER 39, PERSONNEL, ARTICLE III EMPLOYEE
COMPENSATION AND CLASSIFICATION SYSTEM, TO REVISE SECTION 39-303 BY
DELETING PROVISION TO MAINTAIN 5% DIFFERENTIAL ABOVE EMPLOYEES SUPERVISED
BY SELECT POSITIONS IN PAY PLAN 400; TO REVISE SECTION 39-304 BY ADDING CITY
AUDITOR'S OFFICE; TO REVISE SECTIONS 39-329, 39-332, 39-345, AND 39-347
REGARDING VACATION LEAVE; TO REVISE SECTIONS 39-340 AND 39-354 REGARDING
SICK LEAVE; TO REVISE SECTION 39-366 BY ADDING PERSONAL LEAVE HOURS ARE
NOT PAID OUT AT TERMINATION; REPEALING ALL OTHER ORDINANCES, AND RULES, OR
PARTS OF ORDINANCES AND RULES, IN CONFLICT WITH THIS ORDINANCE; PROVIDING
FOR EFFECTIVE DATE AND PROVIDING FOR SEVERANCE.
BACKGROUND AND FINDINGS:
Executive Pav Plan revision:
In July 2009, Pay Plan 400 Executives was revised to include a provision to maintain salaries for select
positions in the Pay Plan at a minimum of five percent (5%) above the salary of the highest paid employee
whom they supervisor in their department. The positions included were as follows:
Grade 423 Deputy City Manager
Grade 422 Assistant Police Chief, First Assistant Fire Chief
Grade 421 Assistant City Manager
Grade 420 City Attorney, Director of Water Operations
Grade 419 Director
Grade 418 Deputy Director
Grade 417 Assistant Director
—175—
This ordinance revision will delete the language noted above. While the current language establishes a set
methodology for preventing compression between the pay of employees in these positions and the
employee's they supervise, it also leaves the City Manager with no discretion regarding executive pay in this
regard.
Chapter 39 Article III provides the following direction and authority to the City Manager regarding pay.
Section 39-300 Policy
It is the policy of the city, consistent with sound budgetary management, to continuously
manage the compensation and classification system to maintain internal equity between
classes of jobs, and to provide competitive pay and benefits in order to attract and retain a high
quality workforce. To the extent possible, given the resources available through the budget, the
city's goal for competitive pay is to maintain pay plan midpoints, sub -zone and step pay rates at
one hundred (100) per cent of market rates. The City Manager is directed to manage the
personnel system to achieve these goals.
Section 39-306 Administration of Employee Classification and Compensation System
Consistent with the annual budget, the city manager is authorized to and shall:
(a) Administer the city's employee classification and compensation system in accordance with this
article and all applicable law;
(b) Manage the system to continuously maintain internal equity and market competitiveness;
(c) Create, modify, and discontinue positions as necessary to best provide services to the citizens of
the community, place those positions in the appropriate pay plan established by this article,
reclassify positions to preserve equity, and maintain a current listing of positions in the human
resources department;
(d) Develop and implement rules for pay advancement within ranges and upon promotion or transfer;
(e) Develop and maintain systems to evaluate and compensate employees based on performance;
(f) Make recommendations to the city council regarding changes needed to this article and other
ordinances governing personnel matters;
(g) Make recommendations to the city council regarding compensation, consistent with sound fiscal
practices.
Section 39-317 Compensation for Police Chief and Fire Chief
The City Manager may grant compensation as set out in chapter 143 of the Texas Local Government
Code and/or the respective collective bargaining agreements in order to ensure that the positions of
police chief and fire chief are competitive.
As the City Manager is directed by and/or granted authority by these provisions, the language proposed to be
removed is not required.
—176—
Classified Service revision:
This revision is to define all positions in the City Auditor's office as exempt from classified service, as are all
positions in the Mayor's and City Secretary's office.
Vacation and Sick Leave Cash -In revisions:
In January 2010, given budgetary constraints the vacation cash -in and sick leave cash -in provision was
temporarily suspended for general employees. This suspension was not intended to be permanent. The
cash -in program was not suspended for Police and Fire employees due to provisions of the collective
bargaining agreements. The continued suspension of the vacation cash -in and sick leave cash -in provision
for general employees, while Police and Fire covered by collective bargaining agreement continues, is
negatively impacting morale and lends itself to the question of fairness. Most significantly, vacation accrual
balances are growing, and in some cases, because of work scheduling, more hours are being approved for
carry-over into the next year, increasing the City's liability to be paid at some point.
Scheduling of Vacation Leave and Personal Leave revisions:
The changes to these sections are for clean-up and clarification purposes.
OTHER CONSIDERATIONS:
None
FINANCIAL IMPACT:
o Not Applicable p g p
X O eratin Ex ense
o Revenue
❑ CIP
FISCAL YEAR
Project to Date
Exp (CIP only)
Current Year
Future Years
Totals
Budget
Encumbered/Expended
amount as of (Date)
This Item
$447,000
$447,000
Balance
Funds:
Comments: Allowing vacation cash -in, as per ordinance, for general employees would result in
approximately $430,000 in costs to the budget, of which approximately $200,000 would be in the
General Fund. Allowing sick leave cash -in, as per ordinance, for general employees would result in
approximately $17,000 in costs to the budget, of which approximately $6,500 would be in the general
fund.
—177—
RECOMMENDATION:
Staff recommends approval of the ordinance to revise the City's Code of Ordinances Chapter 39 Article
III, as presented.
CONFORMITY TO CITY POLICY:
This is a revision to the City's Code of Ordinances Chapter 39 Article III.
EMERGENCY / NON -EMERGENCY:
This ordinance requires two readings.
DEPARTMENTAL CLEARANCES:
The costing of vacation cash -in and sick leave cash -in for general employees was developed by the
Financial Services Department payroll division.
LIST OF SUPPORTING DOCUMENTS:
A copy of the proposed revisions is attached.
c: Carlos Valdez, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
Margie Rose, Assistant City Manager
Oscar Martinez, Assistant City Manager
—178—
ORDINANCE
AMENDING CODE OF ORDINANCES, CHAPTER 39, PERSONNEL, ARTICLE
III EMPLOYEE COMPENSATION AND CLASSIFICATION SYSTEM, TO
REVISE SECTION 39-303 BY DELETING PROVISION TO MAINTAIN 5%
DIFFERENTIAL ABOVE EMPLOYEES SUPERVISED BY SELECT POSITIONS
IN PAY PLAN 400; TO REVISE SECTION 39-304 BY ADDING CITY
AUDITOR'S OFFICE; TO REVISE SECTIONS 39-329, 39-332, 39-345, AND 39-
347 REGARDING VACATION LEAVE; TO REVISE SECTIONS 39-340 AND
39-354 REGARDING SICK LEAVE; TO REVISE SECTION 39-366 BY ADDING
PERSONAL LEAVE HOURS ARE NOT PAID OUT AT TERMINATION;
REPEALING ALL OTHER ORDINANCES, AND RULES, OR PARTS OF
ORDINANCES AND RULES, IN CONFLICT WITH THIS ORDINANCE;
PROVIDING FOR EFFECTIVE DATE AND PROVIDING FOR SEVERANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-303, is amended to read as follows:
ARTICLE III. EMPLOYEE COMPENSATION AND CLASSIFICATION SYSTEM
Sec. 39-303. Standard classifications, pay grades, and ranges.
*
(e) Pay Plan 400. Pay Plan 400 will include positions at the highest level of decision-
making and responsibility. The pay grades and ranges for positions in Pay Plan 400 are as
follows:
Pay Plan 400
Executives
FLSA Overtime Ineligible
2.5% Effective 11/24/2008
Grade
Minimum
Midpoint
Maximum
410
$26,254
$34,096
$41,938
411
33,586
46,565
59,544
412
36,609
50,756
64,903
413
40,107
55,604
71,100
414
44,337
61,469
78,601
415
49,236
68,261
87,287
416
55,171
76,487
97,803
Page 1 of 7
—179—
417 ‘
62,092
86,086
110,079
418
69,445
96,279
123,113
419
70,197
97,320
124,433
420
78,476
108,797
139,118
421
79,357
110,020
140,683
422
87,963
99,021
110,079
423
89,712
124,378
159,043
424
100,671
112,557
124,443
430
City Manager
No Range
This includes a 2.5 per cent range adjustment in address market position effective
11/24/2008, and a 2.5% pay increase for each employee in Pay Plan 400 effective
11/24/2008.
423 Deputy City Manager
421 Afistant City Manager
420 City Attorney, Director of Water Operation&
419 Director
418 Deputy Director
417 A°cistant Director
* * *
SECTION 2. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-304, is amended to read as follows:
Sec. 39-304. Classified service defined.
(a) The classified service includes all positions not exempted in this section. The
following are exempt from the classified service and, therefore, are not covered by rules and
regulations of the civil service board:
(1) All positions within the following pay plans: Pay Plan 1000 (Engineers/Engineering
Services), Pay Plans 800 and 700 (Information Technology), Pay Plan 600 (Exempt),
Pay Plans 500(a) and (b)(Legal), Pay Plan 400 (Executives), Pay Plan 300 (Police
and Fire Managerial), and Exempt employees of Pay Plan HTH Health District.
Page 2 of 7
—180—
(2) All positions in the mayor's office, city secretary's office and
city auditor's office.
(3)
Any position that functions as the principal secretary or assistant to the city manager,
assistant city manager, executive director, municipal court judge, department
director, assistant department director, city secretary, city attorney, assistant city
attorney.
(4) Temporary employees.
(5) All members of the police and fire collective bargaining unit.
(b) Any employee serving in a position not included in the classified services serves at
will, at the pleasure of the city manager (or the city council if appointed by the city council), and
will have and continue such at -will status notwithstanding any other ordinance, rule, or
regulation of the city. No officer or employee of the city may waive or modify the at -will status
of any position described in this section. Provided, however, police and fire positions are
governed by collective bargaining agreements and state law as to job status.
SECTION 3. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-329, is amended to read as follows:
Sec. 39-329. Plan 1 scheduling of vacation leave.
Each department shall keep necessary records of vacation leave accumulated and shall
schedule vacation leave giving consideration to operational need and priority, and when
scheduling conflicts arise, to employees with seniority. Official city holidays occurring during an
employee's vacation shall not be considered or charged as a part of the employee's vacation.
Vacation leave must be requested and approved in advance.
SECTION 4. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-332, is amended to read as follows:
Sec. 39-332. Plan I cash -in of vacation leave.
(a) Plan I employees with more than one hundred twenty (120) hours of accrued
vacation, or if base hours are less than forty (40) hours per week, on a prorated basis, except
for airport public safety officers who work shifts of twenty-four (24) hours on and forty-eight
Page 3 of 7
—181—
(48) hours off, will be allowed to "cash -in" accrued vacation hours at the rate of eight (8) hours
of equivalent pay for each eight (8) hours of vacation actually taken off during the calendar
year, up to a maximum of forty (40) hours.
(1)
Plan. I employees, as eligible per items (a) above, who have completed twenty (20)
years of service with the city, beginning the twenty-first year, will be allowed to "cash -
in" an additional eight (8) hours of accrued vacation for an additional eight (8) hours
actually taken off during the calendar year, or if base hours are less than forty (40)
hours per week, on a prorated basis.
(b) Plan I airport public safety officers who work shifts of twenty-four (24) hours on and
forty-eight (48) hours off, who accumulate more than one hundred eighty (180) hours of
vacation, will be allowed to "cash -in" vacation hours at the rate of twelve (12) hours of
equivalent pay (equal to one day) for each twelve (12) hours of vacation actually taken off
during the calendar year, up to a maximum of sixty (60) hours.
(1) Plan I airport public safety officers, as eligible per items (b) above, who have
completed twenty (20) years of service with the city, beginning the twenty-first year,
will be allowed to "cash -in" an additional twelve (12) hours of accrued vacation for an
additional twelve (12) hours actually taken off during the calendar year.
* * *
SECTION 5. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-340, is amended to read as follows:
Sec. 39-340. Plan I cash -in of sick leave.
This section is suspended effective February 1, 2010 due to budgetary constraints. When
economic conditions of the city improve, the city manager is authorized to lift the suspension.
(a) A Plan I employee, except for airport public safety officers who work shifts of twenty-
four (24) hours on and forty-eight (48) hours off, who has at least two hundred forty (240)
hours of accumulated sick leave, or if base hours are less than forty (40) hours per week, on a
prorated basis, and who has not taken any hours of sick leave in the previous calendar year
may cash in up to forty-eight (48) hours of accumulated sick leave in a calendar year, or if
base hours are Tess than forty (40) hours per week, on a prorated basis, at fifty (50) per cent of
salary or hourly rate of pay.
(b) An airport public safety officer who works shifts of twenty-four (24) hours on and
forty-eight'(48) hours off and who has at least three hundred sixty (360) hours of accumulated
sick leave, and who has not taken any sick leave in the previous calendar, may cash in up to
seventy-two (72) hours of accumulated sick leave in a calendar year, at fifty (50) per cent of
salary or hourly rate of pay.
Page 4 of 7
—182—
SECTION 6. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-345, is amended to read as follows:
Sec. 39-345. Plan II scheduling of vacation leave.
Each department shall keep necessary records of vacation leave accumulated and shall
schedule vacation leave giving consideration to operational need and priority, and when
scheduling conflicts arise, to employees with seniority, operational needs, and, if poccible, with-
requests
ithrequests of thc employees. Official city holidays occurring during an employee's vacation shall
not be considered or charged as a part of the employee's vacation. Use of vacation accrual
that exceeds two hundred forty (240) consecutive working hours during a calendar year shall
require approval by the department head, or designee. Vacation leave must be requested and
approved in advance.
SECTION 7. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-347, is amended to read as follows:
Sec. 39-347. Plan II cash -in of vacation leave.
This section is suspended effective February 1, 2010 due to budgetary constraints. When
economic conditions of thc city improve, the city manager is authorized to lift the suspension.
Plan II employees with more than two hundred forty (240) hours of accrued vacation shall
be allowed to "cash -in" accrued vacation hours at the rate of eight (8) hours of equivalent pay
for each eight (8) hours of vacation taken off during the calendar year, up to a maximum of
forty (40) hours. Plan I1 employees, who have completed twenty (20) years of service with the
city, beginning the twenty-first year, will be allowed to "cash -in" an additional eight (8) hours of
accrued vacation for an additional eight (8) hours actually taken off during the calendar year.
SECTION 8. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-354, is amended to read as follows:
Sec. 39-354. Plan II cash -in of sick leave.
This section is suspended effective February 1, 2010 due to budgetary constraints. When
economic conditions of thc city improve, the city manager is authorized to lift the suspension.
A Plan II employee who has at least seven hundred twenty (720) hours accumulated sick
—183—
Page 5 of 7
leave and who has not taken any sick leave in the previous calendar year, may cash -in up to
forty-eight (48) hours of accumulated sick leave in a calendar year at fifty (50) per cent of
salary or hourly rate of pay.
SECTION 9. Chapter 39, PERSONNEL, Article III. Employee Compensation and
Classification System of the Code of Ordinances of the City of Corpus Christi, Texas, Section
39-366, is amended to read as follows:
Sec. 39-366. Personal leave.
(a) Effective August 1 of each year, each full-time employee shall receive forty (40)
hours of personal leave to be used under guidelines promulgated by the city manager, or
designee, except for airport public safety officers who work shifts of twenty-four (24) hours on
and forty-eight (48) hours off, who shall receive sixty (60) hours of personal leave.
(b) Personal leave hours must be requested and approved in advance like vacation
accrual, but are non -cumulative.
(c) Personal leave must be taken within the fiscal year received.
(d) Personal leave may be used within the first six (6) months of employment with the
city.
(e) Personal leave hours are not paid out at termination.
SECTION 10. This Ordinance is effective upon final adoption by the City Council. Revisions
within this Ordinance will become effective August 1, 2011.
SECTION 11. 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.
Page 6 of 7
—184—
That the forging ordinance a read for the first time and passed to its second reading on
this the /`D-day of 2011, by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo
Kevin Kieschnick
Priscilla G. Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
That the foregoing ordinance was read for the second time and passed finally on this the
day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry Elizondo Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla G. Leal
PASSED AND APPROVED, this the day of 2011.
ATTEST:
Armando Chapa Joe Adame
City Secretary.�.�� Mayor
zi
APPROVED as to form: iTG?d6/l
By: J 1(617 -LIS
//
r-'nnifer A. Knox -Walker
Assistant City Attorney
for the City Attorney
-185-
Page 7 of 7
13
s,,City of
En Corpus
Chnsti
AGENDA MEMORANDUM
for the City Council Meeting of July 12, 2011
DATE: June 30, 2011
TO: Ronald L. Olson, City Manager
FROM: Eddie Houlihan, Assistant Director, Management & Budget
eddieho@cctexas.com
826-3792
Various ordinances/resolutions adjusting fees/rates included in the FY 2011-12
Proposed Budget.
PURPOSE:
A. AMENDING SECTIONS 55-50, 55-54, and 55-56, CODE OF ORDINANCES, CITY OF CORPUS
CHRISTI, REGARDING WATER RATES FOR FISCAL YEAR 2011/2012; PROVIDING FOR
SEVERANCE; PROVIDING AN EFFECTIVE DATE; AND PROVIDING FOR PUBLICATION.
B. ORDINANCE AMENDING SECTIONS 12-108, CODE OF ORDINANCES, CITY OF CORPUS
CHRISTI, REGARDING SUNRISE BEACH RECREATION SITE RATES FOR FISCAL YEAR
2011/2012; PROVIDING FOR SEVERANCE; PROVIDING AN EFFECTIVE DATE; AND
PROVIDING FOR PUBLICATION.
C. ORDINANCE REVISING THE TITLE OF ARTICLE VII, CHAPTER 55, CODE OF ORDINANCES;
AMENDING SECTION 55-100, CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, SETTING
THE WASTEWATER RATES FOR FISCAL YEAR 2011/2012; ESTABLISHING THE
PROCEDURES FOR THE FISCAL YEAR 2011/2012 OF THE WASTEWATER RATES;
PROVIDING FOR SEVERANCE; PROVIDING AN EFFECTIVE DATE; AND PROVIDING FOR
PUBLICATION.
D. RESOLUTION AUTHORIZING ADJUSTMENT OF PARKS, RECREATION, CULTURAL, AND
LEISURE TIME ACTIVITIES RENTAL AND RECREATIONAL FEES; ADDING NEW RENTAL
FEES AND RECREATIONAL FEES FOR FISCAL YEAR 2011-2012; PROVIDING FOR
PUBLICATION; PROVIDING FOR EFFECTIVE DATE; AND PROVIDING FOR SEVERANCE.
E. ORDINANCE AMENDING SECTION 2-79 OF THE CODE OF ORDINANCES, BY AUTHORIZING
AN ANNUAL NONRESIDENT LIBRARY FEE; PROVIDING AN EFFECTIVE DATE; PROVIDING FOR
SEVERANCE; AND PROVIDING FOR PUBLICATION.
FINANCIAL IMPACT:
X Not Applicable
o Operating Expense
—189—
❑ Revenue ❑ CIP
FISCAL YEAR:
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
Encumbered/Expended
amount as of (DATE)
0
This item
0
0
0
BALANCE
0
0
0
0
FUND(S):
Comments: This item has no financial impact on the budget.
RECOMMENDATION:
Approval of the Ordinances as submitted.
CONFORMITY TO CITY POLICY:
Ordinances/Resolution comply with City Policy.
EMERGENCY / NON -EMERGENCY:
Item requires two readings. Second Reading is scheduled on July 19, 2011.
DEPARTMENTAL CLEARANCES:
Water
Wastewater
Parks and Recreation
Library
LIST OF SUPPORTING DOCUMENTS:
Ordinance amending various sections regarding Water Rates
Ordinance amending various sections regarding Sunrise Beach Rates
Ordinance amending various sections regarding Wastewater Rates
Resolution authorizing adjustment of Parks & Recreations Fees
Ordinance amending section regarding Library Fees
Cc: Lisa Aguilar, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Oscar Martinez, Assistant City Manager
Margie C. Rose, Assistant City Manager
—190—
Page 1 of 15
ORDINANCE
AMENDING SECTIONS 55-50, 55-54, and 55-56, CODE OF
ORDINANCES, CITY OF CORPUS CHRISTI, REGARDING WATER
RATES FOR FISCAL YEAR 2011/2012; PROVIDING FOR
SEVERANCE; PROVIDING AN EFFECTIVE DATE; AND PROVIDING
FOR PUBLICATION.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, THAT:
SECTION 1. Section 55-50, Code of Ordinances, is revised to read as follows:
"Sec. 55-50. Schedule.
"(a) Base rates for water service The rates for water service are as follows:
"(1) Monthly minimum charges.
"a. Metered treated water customers.
"1. Inside city limits ("ICL"):
Meter Size (Inches)
August
-1,-2440-40414-34740-14
August 1, 2011 to July 31, 2012
Residential
5/8-- 3/4
$ 8.72
Commercial
5/8- 3/4
12.58
Residential and Commercial
1
18.87
1 1/2
31.46
2
62.90
3
100.64
4
201.29
6
314.52
8 and larger
629.03
Large Volume
Any size
16,349.00
2011-2012 WATER RATE ORDINANCE 06302011A
-191-
Page 2 of 15
Temporary construction
August47-204-0-404144-17-21M
1
18.87
1
1/2
31.46
2
62.90
"2. Outside city limits ("OCL"):
Meter Size (Inches)
August47-204-0-404144-17-21M
August 1, 2011 to July 31, 2012
Residential
5/8 --'/.
$ 10.46
Commercial
5/8 -- 3/
15.10
Residential and Commercial
1
22.64
1 1/2
37.75
2
75.48
3
120.77
4
241.55
6
377.42
8 and larger
754.84
Large Volume
Any size
27,279.00
Temporary construction
1
22.64
1 1/2
37.75
2
75.48
2011-2012 WATER RATE ORDINANCE 06302011A
—192—
Page 3 of 15
"b. Untreated water customers.
'Minimum monthly charge for public agency for resale untreated water customer without
a raw water supply contract executed after January 1, 1997: If the charge based on the
volume of water taken in a monthly billing period is less than $237.70, the customer
shall be billed $237.70, unless a valid water supply contract between the customer and
city that was executed prior to January 1, 1997, provides for a minimum annual
payment. If a valid water supply contract between the customer and city executed prior
to August 1, 2000, provides for a minimum annual payment, the customer shall pay the
minimum annual payment under the contract.
"c. Blended water customers.
August A 2010 is my 9A 901 A
Auqust 1, 2011 to July 31,2012
Any size
Minimum monthly service charge, water
districts/municipalities with raw water
supply contracts executed after January 1,
1997
}$
390.281
Minimum monthly service charge for public
agency for resale untreated water without
a raw water supply contract executed after
January 1, 1997
237.70
Minimum monthly service charge,
industrial
390.28
Minimum monthly service charge,
domestic
13.00
Minimum annual service charge, domestic
130.09
Minimum monthly service charge,
agricultural irrigation water service
195.00
Minimum monthly service charge,
temporary construction water service •
260.00
'Minimum monthly charge for public agency for resale untreated water customer without
a raw water supply contract executed after January 1, 1997: If the charge based on the
volume of water taken in a monthly billing period is less than $237.70, the customer
shall be billed $237.70, unless a valid water supply contract between the customer and
city that was executed prior to January 1, 1997, provides for a minimum annual
payment. If a valid water supply contract between the customer and city executed prior
to August 1, 2000, provides for a minimum annual payment, the customer shall pay the
minimum annual payment under the contract.
"c. Blended water customers.
2011-2012 WATER RATE ORDINANCE 06302011A
—193—
August 2010 is 1uly 9A 2014
August 1, 2011 to July 31, 2012
Any size
$ 27,279.00
2011-2012 WATER RATE ORDINANCE 06302011A
—193—
Page 4 of 15
"(2) Monthly volume charges per 1,000 gallons.
"a. Residential rate.
"1. Inside city limits:
se the minimum charges in subsection (a)(1).
"2. Outside city limits:
August A 20.10 t.. lulu 3A 20A A
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Next 4,000 Gallons
$4442
$ 3.758
$1.831
Next 4,000 Gallons
4-302
2,946
4.698
2.289
Next 5,000 Gallons
4.948
2,349
5.402
2.632
Next 15,000 Gallons
6.023
2.823
6.577
3.205
Next 20,000 Gallons
7.314
Next 20,000 Gallons
3.428
7.986
3.891
Next 50,000 Gallons
7.960
8.690
Over 100,000 Gallons
8.605
9.395
se the minimum charges in subsection (a)(1).
"2. Outside city limits:
2011-2012 WATER RATE ORDINANCE 06302011A
—194—
August 2010 to 1uly 31 2011.1
-11
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Next 4,000 Gallons
$ 1.613
$1.831
Next 4,000 Gallons
2,946
2.289
Next 5,000 Gallons
2,349
2.632
Next 15,000 Gallons
2.823
3.205
Next 20,000 Gallons
3.428
3.891
2011-2012 WATER RATE ORDINANCE 06302011A
—194—
Page 5 of 15
Next 50,000 Gallons
3.730
August 1, 2011 to July 31, 2012
4.235
First 2,000 Gallons
Minimum*
Over 100,000 Gallons
4.032
$ 2.560
4.578
se the minimum charges in subsection (a)(1).
"b. Commercial rate.
"1. Inside city limits:
*Use the minimum charges in subsection (a)(1).
"2. Outside city limits:
A,a6. 3.1 4011
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
$_4.302
$ 4.678
$ 2.560
*Use the minimum charges in subsection (a)(1).
"2. Outside city limits:
se the minimum charges in subsection (a)(1).
"c. Golf course and athletic field irrigation water inside City limits:
August 1,2010 to 4d 2014
July
August 1,2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
S 2.383
$ 2.560
se the minimum charges in subsection (a)(1).
"c. Golf course and athletic field irrigation water inside City limits:
se the minimum charges in subsection (a)(1) for ICL commercial customer.
"d. Resale treated water rates.
"1. Treated water rates purchased for resale where the water is
taken and metered at the site of treatment are hereby set
follows:
2011-2012 WATER RATE ORDINANCE 06302011A
—195—
August -1r1 2010 to 4�
u1 7 s201
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
$ 2.216
$ 2.594
se the minimum charges in subsection (a)(1) for ICL commercial customer.
"d. Resale treated water rates.
"1. Treated water rates purchased for resale where the water is
taken and metered at the site of treatment are hereby set
follows:
2011-2012 WATER RATE ORDINANCE 06302011A
—195—
Page 6 of 15
Use the minimum charges in subsection (a)(1).
"2. Treated water rates purchased for resale where the water is
delivered to the resale entity through city facilities are hereby set as
follows:
August A 2010 to 1..l„ 31 2011
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
$-04
$ 0.879
Use the minimum charges in subsection (a)(1).
"2. Treated water rates purchased for resale where the water is
delivered to the resale entity through city facilities are hereby set as
follows:
*Use the minimum charges in subsection (a)(1).
"e. Large volume treated water customers. A commercial treated water
customer who agrees to pay for a minimum of ten million (10,000,000)
gallons of treated water per month is considered a large volume treated
water customer. Once a customer has elected to become a large volume
treated water customer, the customer will be billed as a large volume
treated water customer until the customer notifies the city and requests
reclassification as a commercial customer in writing. However, a
commercial customer may not elect to become a large volume treated
water customer more than once in any twelve-month period.
"1. Inside city limits:
2N1
August 1 fl to 1..1..4.1 201.1
, ,
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
$45
$ 1.551
*Use the minimum charges in subsection (a)(1).
"e. Large volume treated water customers. A commercial treated water
customer who agrees to pay for a minimum of ten million (10,000,000)
gallons of treated water per month is considered a large volume treated
water customer. Once a customer has elected to become a large volume
treated water customer, the customer will be billed as a large volume
treated water customer until the customer notifies the city and requests
reclassification as a commercial customer in writing. However, a
commercial customer may not elect to become a large volume treated
water customer more than once in any twelve-month period.
"1. Inside city limits:
*Use the minimum charges in subsection (a)(1).
2011-2012 WATER RATE ORDINANCE 06302011A
—1 9 6—
August 1 2010 ♦o my 41 9011
August 1, 2011 to July 31, 2012
First 10,000,000 Gallons
Minimum*
Each Additional 1,000 Gallons
$4,547
$ 3.010
*Use the minimum charges in subsection (a)(1).
2011-2012 WATER RATE ORDINANCE 06302011A
—1 9 6—
Page 7 of 15
"2. Outside city limits:
se the minimum charges in subsection (a)(1).
"f. Large volume blended water customers. A •commercial blended water
customer who agrees to purchase a minimum of ten million (10,000,000)
gallons of blended water per month is considered a large volume blended
water customer.
"1. Inside city limits:
August 1 9010 to July 34 9014
August 1, 2011 to July 31, 2012
First 10,000,000 Gallons
Minimum*
Each Additional 1,000 Gallons
$ 1.465
$ 1.551
se the minimum charges in subsection (a)(1).
"f. Large volume blended water customers. A •commercial blended water
customer who agrees to purchase a minimum of ten million (10,000,000)
gallons of blended water per month is considered a large volume blended
water customer.
"1. Inside city limits:
se the minimum charges in subsection (a)(1).
"2. Outside city limits:
August 1 20111 ♦o 1uly 94 2014
August 1, 2011 to July 31, 2012
First 10,000,000 Gallons
Minimum*
Each Additional 1,000 Gallons
$_2,278
$ 2.143
$ 0.059
se the minimum charges in subsection (a)(1).
"2. Outside city limits:
se the minimum charges in subsection (a)(1).
"3. Peaking factor. [To be determined.]
2011-2012 WATER RATE ORDINANCE 06302011A
—197—
August_' 1,2010 t.. 1l„ 31 2014
August 1, 2011 to July 31, 2012
First 10,000,000 Gallons
Minimum*
Each Additional 1,000 Gallons
$ 0.071
$ 0.059
se the minimum charges in subsection (a)(1).
"3. Peaking factor. [To be determined.]
2011-2012 WATER RATE ORDINANCE 06302011A
—197—
Page 8 of 15
"g. Temporary water service.
"1. Treated water.
"A. Inside city limits:
se the minimum charges in subsection (a)(1).
"B. Outside city limits:
August 4 90.10 to 1uly 44 904.1
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
$A,500
$ 4.678
se the minimum charges in subsection (a)(1).
"B. Outside city limits:
se the minimum charges in subsection (a)(1).
"2. Untreated water.
"A. Inside city limits:
August 1,2010 to ,1 44
,2014
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
$LA0
$ 2.560
se the minimum charges in subsection (a)(1).
"2. Untreated water.
"A. Inside city limits:
se the minimum charges in subsection (a)(1).
"B. Outside city limits:
August 4 9040 M.. 1..1.. 44
7 �9014
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
2 X RWCA
se the minimum charges in subsection (a)(1).
"B. Outside city limits:
se the minimum charges in subsection (a)(1).
2011-2012 WATER RATE ORDINANCE 06302011A
—198—
August 4 9010 a. 1. 1 34 2044
, _._... .....j....��-..-vim-r
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
2 X RWCA
se the minimum charges in subsection (a)(1).
2011-2012 WATER RATE ORDINANCE 06302011A
—198—
Page 9 of 15
"h. Agricultural irrigation water outside City limits:
se the minimum charges in subsection (a)(1).
"i. Public agency for resale untreated water rates. The rates for the
purchase of untreated water purchased by a public agency, which does
not have a raw water supply contract with the city executed after January
1, 1997, is the average of the monthly raw water cost adjustments,
established under subsection (b) of this section, for the period used to
determine the composite cost of untreated water under the city's current
contract with the public agency.
"(b) Raw water cost adjustment (RWCA). In addition to the charges for the base rates
for water service, established in subsection (a), a separate charge for the costs of raw
water, the RWCA, will be added to each consumer's bill, except public agency for resale
untreated water customers without a raw water supply contract executed after
January 1, 1997. (A public agency for resale untreated water customer without a raw
water supply contract executed after January 1, 1997, will pay the lower of the
composite cost, as defined in its contract with the city or the rate for public agency for
resale untreated water customers without a raw water supply contract executed after
January 1, 1997, specified in subsection (a)(2)f. of this section.) The RWCA will be
based on projected system -wide raw water sales, adjusted for water losses. The
RWCA will be calculated on an annual basis using the adopted utility rate model,
according to the following procedures:
"(1) Use projected system -wide water sales based on historical consumption and
projected growth, with adjustments for water losses.
"(2) Include the annual budgeted cost of debt service. Bond payments,
amortization of deferred losses on refundings, and other debt service costs shall
be applied to the RWCA in the same proportion as the raw water activities
proportion of the original bond proceeds.
"(3) Include budgeted expenditures for purchases of water.
"(4) Include purchases of water rights, amortized over the duration of the water
right agreement.
"(5) Budgeted expenditures for capital items shall be included as follows:
2011-2012 WATER RATE ORDINANCE 06302011A
—199—
August A 2010 to 1uly 31 201 A
August 1, 2011 to July 31, 2012
First 2,000 Gallons
Minimum*
Over 2,000 Gallons
2 X RWCA
se the minimum charges in subsection (a)(1).
"i. Public agency for resale untreated water rates. The rates for the
purchase of untreated water purchased by a public agency, which does
not have a raw water supply contract with the city executed after January
1, 1997, is the average of the monthly raw water cost adjustments,
established under subsection (b) of this section, for the period used to
determine the composite cost of untreated water under the city's current
contract with the public agency.
"(b) Raw water cost adjustment (RWCA). In addition to the charges for the base rates
for water service, established in subsection (a), a separate charge for the costs of raw
water, the RWCA, will be added to each consumer's bill, except public agency for resale
untreated water customers without a raw water supply contract executed after
January 1, 1997. (A public agency for resale untreated water customer without a raw
water supply contract executed after January 1, 1997, will pay the lower of the
composite cost, as defined in its contract with the city or the rate for public agency for
resale untreated water customers without a raw water supply contract executed after
January 1, 1997, specified in subsection (a)(2)f. of this section.) The RWCA will be
based on projected system -wide raw water sales, adjusted for water losses. The
RWCA will be calculated on an annual basis using the adopted utility rate model,
according to the following procedures:
"(1) Use projected system -wide water sales based on historical consumption and
projected growth, with adjustments for water losses.
"(2) Include the annual budgeted cost of debt service. Bond payments,
amortization of deferred losses on refundings, and other debt service costs shall
be applied to the RWCA in the same proportion as the raw water activities
proportion of the original bond proceeds.
"(3) Include budgeted expenditures for purchases of water.
"(4) Include purchases of water rights, amortized over the duration of the water
right agreement.
"(5) Budgeted expenditures for capital items shall be included as follows:
2011-2012 WATER RATE ORDINANCE 06302011A
—199—
Page 10 of 15
"a. The expense of acquiring a capital item that costs not more than five
hundred thousand dollars ($500,000.00) shall be charged in the year in
which it is acquired.
"b. The expense of acquiring a capital item that costs more than five
hundred thousand dollars ($500,000.00) shall be amortized over the
number of years used to calculate depreciation expenses, with the half-
year convention used in the year of acquisition.
"(6) All operating and maintenance expenditures shall be charged based on
annual budgeted amounts. These expenditures include operation and
maintenance of dams, reservoirs, pipelines, wells, pumping stations, and related
interfund charges.
"(7) All expenses for consultants, engineering, legal services, and administration
shall be charged based on annual budgeted amounts in the proportion to which
they apply to raw water issues.
"(8) Expenses related to the acquisition and transportation of emergency water
supplies shall be included in the RWCA for the following fiscal year, unless
foreseen and budgeted in advance, in which case they are included in the year
budgeted.
"(9) Miscellaneous revenues related to raw water activity, such as oil and gas
lease revenues and rentals, is applied as an offset based on annual budgeted
amounts.
"(10) Apply the credit for levelized Choke Canyon debt payments to city rate
payers' RWCA. (The escalating payment schedule on the Choke Canyon debt
was levelized through the creation of a reserve fund. In the initial years,
payments greater than the debt service were made, with the excess going into
the reserve fund. This excess was paid through a rate surcharge on ICL and
OCL metered treated water customers. Now that bond payments exceed the
levelized payment amount, the reserve fund is drawn on to make up the
difference. Since only ICL and OCL metered treated water customers
participated in building the reserve fund, the drawing on the reserve fund is only
credited to the RWCA assessed against ICL and OCL metered treated water
customers.)
"(11) Include funds necessary to collect 1.35 times coverage on current annual
debt service in order to improve the financial position and bond ratings of the
city's water fund.
"(12) Include funds necessary to establish and maintain an operating reserve
fund with a target amount of twenty-five (25) per cent (or three (3) months) of
annual operating expenses for the fiscal year.
2011-2012 WATER RATE ORDINANCE 06302011A
—200—
Page 11 of 15
"(13) Include funds necessary to establish and operate a water capital reserve
fund with a target amount of two (2) per cent of the respective annual water
capital improvements program for the fiscal year or two million dollars
($2,000,000.00) (whichever is greater).
"(14) Include funds necessary to establish and maintain a future water resources
reserve fund (Water Supply Development Reserve) with an ultimate target
balance of $30,000,000, and an annual contribution of approximately $2,000,000
per fiscal year.
"(15) The minimum operating or capital reserves amounts are intended to provide
for unplanned, unbudgeted expenses and revenue shortfalls, and will not be
used for routine expenses.
"(16) At fiscal year end, determine the amount of over or under collections that
have resulted from difference between budgeted and actual expenses and
offsetting revenues and the difference between projected and actual volume of
water sold. Any funds realized in excess of annual expenses are available for
either supplementing minimum operating or capital reserves, for addition to the
capital funds for discretionary cash capital funding of the water utility, or to create
and maintain a reserve to level out large fluctuations in raw water charges is
authorized. Apply any remaining amount as an adjustment to the RWCA.
"(c) Definitions.
"Costs of raw water is the total of all costs of acquiring, producing, storing,
conserving, and transporting untreated water from its source to the City's
treatment facility and all other points of diversion. These costs include, but are
not limited to, the costs of:
"Construction, including debt service, operation, and maintenance of dams
and reservoirs.
"Construction, including debt service, operation, and maintenance of raw
water supply transmission pipelines.
"Construction, including debt service, operation, and maintenance of wells.
"Construction, including debt service, operation, and maintenance of
facilities capable of converting wastewater effluent, salt water, and
brackish ground water into water suitable for municipal, industrial, or
agricultural uses.
"Acquisition of new water supplies and water rights, including the
establishment and funding of a reserve dedicated to offset the costs of
acquisition of additional water rights and the implementation of long range
water resource development and related capital improvements.
2011-2012 WATER RATE ORDINANCE 06302011A
—201—
Page 12 of 15
"Construction, operation, and maintenance of facilities to reduce water
losses from water resources due to evaporation or the release of water
from a reservoir due to the operation of law.
"Acquisition and transportation of emergency water supplies, including the
costs of transporting water by vessel or pipelines from other regions.
"Water supply development and protection, including consultants' studies
and reports, investigations, legal fees, court costs, and any other costs
related to the development or protection of the water supply.
"Administrative costs, including overhead and the portion of the city's
general administrative costs applicable to the activities enumerated in this
definition.
SECTION 2. The laboratory rate table in Section 55-56(a), Code of Ordinances, is
revised to read as follows:
"Sec. 55-54. Water utilities laboratory charges.
"(a) The following fees apply to tests performed at the city's water utilities
laboratory for other government agencies and private parties:
Parameter
Fee
Total Coliform
$15.00
$17.00
Fecal Streptococcus
$20.00
Fecal Coliform
$20.00
Escherichia coli
$20.00
(E. Coli)
Enterococci
$17.00
Hexane Extractable
Material (HEM)
$50.00
Total Organic Carbon
$35.00
Specific Ultra -Violet
Absorption (SUVA)
$35.00
2011-2012 WATER RATE ORDINANCE 06302011A
—202—
Page 13 of 15
Biochemical Oxygen
Demand (BOD)
$30.00
Carbonacious Biochemical
Oxygen Demand (CBOD)
$32.00
Total Suspended Solids
(TSS)
$15.00
Total Dissolved Solids
(TDS)
$20.00
Total Kjeldahl Nitrogen
(TKN)
$35.00
Total Nitrate -- Nitrogen
$25.00
Total Ammonia - Nitrogen
$20.00
Total Phosphorus
$25.00
Dissolved Phosphorus
$27.00
SECTION 3. Section 55-56(c) -- (f), Code of Ordinances, is revised to read as follows:
"Sec. 55-56. Temporary construction water service.
"(c) The temporary water service customer shall pay an application fee to cover
the costs of establishing the temporary account, placing the meter, and installing
and testing any required backflow preventer. The temporary water service
application fees are:
"(1) Inside city limits ...$100-00 $150.00
"(2) Outside city limits ...a-00.00150.00
"(d) The temporary water service customer shall pay the applicable water service
rates in section 55-50. In addition, to paving the applicable water service rates a
temporary water service customer shall pay $150.00 per month to lease the
temporary water meter.
2011-2012 WATER RATE ORDINANCE 06302011A
-203-
Page 14 of 15
"(e) If the customer request relocation of the temporary meter, the customer shall
pay a one hundred twenty five dollars ($125.00)
meter movement fee, which includes the costs of testing the backflow preventer.
"(0 If a customer moves a temporary water service meter, the customer shall pay
a = _ - . _ .. _ . e e two hundred fifty dollars ($250.00)
meter tampering charge, plus the costs of any broken parts, including chains,
locks, and seals. This tampering charge does not offset any penalties for
operating without a tested backflow preventer.
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 of this ordinance be given full force and effect for its purpose.
SECTION 5. This ordinance is effective on August 1, 2011.
SECTION 6. 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.
2011-2012 WATER RATE ORDINANCE 06302011A
—204—
That the foregoing ord+i ance was read fo
reading on this the 1 & day of a,,_
Page 15 of 15
the first time and passed to its second
, 2011, by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo,
Kevin Kieschnick
Priscilla Leal
That the foregoing
the day of
Joe Adame
Chris N. Adler
Larry R. Elizondo,
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Sr. 1.,j/ Nelda Martinez
ALA_
Mark Scott k
AP fr-
ordinance was read for the second time and passed finally on this
, 2011, by the following vote:
David Loeb
John E. Marez
Sr. Nelda Martinez
Mark Scott
PASSED AND APPROVED, this the
ATTEST:
Armando Chapa
City Secretary
APPROVED: 30th day of June, 2011:
R. J- R-ining
Fir A- istant City Attorney
For City Attorney
2011-2012 WATER RATE ORDINANCE 06302011A
day of 2011.
Joe Adame
Mayor
-205-
Page 1 of 3
ORDINANCE
AMENDING SECTIONS 12-108, CODE OF ORDINANCES, CITY OF
CORPUS CHRISTI, REGARDING SUNRISE BEACH RECREATION
SITE RATES FOR FISCAL YEAR 2011/2012; PROVIDING FOR
SEVERANCE; PROVIDING AN EFFECTIVE DATE; AND PROVIDING
FOR PUBLICATION.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, THAT:
SECTION 1. Section 12-108(e), Code of Ordinances, is revised to read as follows:
"Sec. 12-108. Sunrise Beach recreation site.
"(e) The director shall charge the following applicable fees for use of the facilities
at the Sunrise Beach recreation site:
Facility
Fee
Daily Use
Automobile (1 or two passengers)
$8.O0
$10.00
Additional passengers
$3.00
$4.00
Children (6 and under)
Free
Use of Boat Ramp
—
$10.00
Overnight Primitive Tent Camping (no
electricity or water)
Automobile or RV (1 or two occupants)
$25.00
Additional occupants
$3-09
$4.00
Children (6 and under)
Free
2011-2012 SUNRISE BEACH RATE ORDINANCE 06302011
-206-
Page 2 of 3
Overnight Camping (electricity and water
provided)
RV (1 or two occupants)
$30.00
Additional occupants
$388
$4.00
Children (6 and under)
Free
Overnight Camping (full hook-up -
electricity, water, and sewer provided)
RV (1 or two occupants)
$35.00
Additional occupants
$3410—
$4.00
Children (6 and under)
Free
Extended Stay RV sites (full hook-up -
electricity, water, and sewer)
Weekly site
$150.00
Monthly site
$400.00
Extended Stay Stationary Mobile Home or
RV sites (partial hook-up - water and
sewer/electricity individually metered)
$400-:08
$450.00
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. Except for the increase in the rate increase for the extended stay
stationary mobile home or RV sites, the rates in this ordinance go into effect on August
1, 2011. The rate increase for the extended stay stationary mobile home or RV sites go
into effect on October 1, 2011.
SECTION 4. 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.
2011-2012 SUNRISE BEACH RATE ORDINANCE 06302011
—207—
Page 3 of 3
That the foregoing or finance was read for th first time and passed to its second
reading on this the day of
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
011, by the following vote:
David Loeb
John E. Marez
L— Nelda Martinez
(itty Mark Scott
That the foregoing ordinance was read for the second time and passed finally on this
the day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry R. Elizondo, Sr. Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla Leal
PASSED AND APPROVED, this the day of , 2011.
ATTEST:
Armando Chapa
City Secretary
APPROVED: 30th day of June, 2011:
R. J ining
First Assistant City Attorney
For City Attorney
Joe Adame
Mayor
2011-2012 SUNRISE BEACH RATE ORDINANCE 06302011
—208—
Page 1 of 6
ORDINANCE
REVISING THE TITLE OF ARTICLE VII, CHAPTER 55, CODE OF
ORDINANCES; AMENDING SECTION 55-100, CODE OF
ORDINANCES, CITY OF CORPUS CHRISTI, SETTING THE
WASTEWATER RATES FOR FISCAL YEAR 2011/2012;
ESTABLISHING THE PROCEDURES FOR THE FISCAL YEAR
2011/2012 OF THE WASTEWATER RATES; PROVIDING FOR
SEVERANCE; PROVIDING AN EFFECTIVE DATE; AND PROVIDING
FOR PUBLICATION.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, THAT:
SECTION 1. The title of Article VII, Code of Ordinances, is revised to read as follows:
"ARTICLE VII. SEWERWASTEWATER RATES"
SECTION 2. Section 55-100, Code of Ordinances is revised to read as follows:
"Sec. 55-100. Schedule.
"(a) The monthly charge to be paid by users of sewer service furnished by the city's
municipal sewer system, except as otherwise provided in articles VII and XI of chapter
55, shall be based on the amount of water used by the user according to the following
rates:
Classification
August 1, 2010 to t ,,,II,�_31
t
August 1, 2011 to July 31, 2012
Inside city limits
One -family minimum monthly charge (first
2,000 gallons)
$ 20.76
$23.96
Inside city limits
One -family per 1,000 gallons over 2,000
4720
4.84
Inside city limits
One -family maximum monthly charge (up
to 25,000 gallons)
14746
135.28
Outside city limits
One -family minimum monthly charge (first
2,000 gallons)
25.95
29.95
Outside city limits
One -family per 1,000 gallons over 2,000
8416
10.72
Outside city limits
One -family maximum monthly charge (up
to 25,000 gallons)
229750
279.98
2011-2012 Wastewater Rate Ordinance 06302011.docx —209-
Page 2 of 6
Inside city limits
Commercial minimum monthly charge (first
2,000 gallons)
32.12
32.55
Inside city limits
374
-1 -
Commercial per 1,000 gallons over 2,000
3.46
Outside city limits
Commercial minimum monthly charge (first
4046
2,000 gallons)
40.69
Outside city limits
6
Commercial per 1,000 gallons over 2,000
6.93
"(b) The amount of water used to compute the monthly bills to one -family residential
customers shall be computed on the basis of the "winter average" or "interim average"
that is calculated under this subsection.
"(1) Definitions.
"a. Winter averaging wastewater charge period: The period of water and
wastewater service during the three (3) complete consecutive reading
periods commencing on or after December 1 of each year. -Using -the
"b. Winter average usage: The monthly wastewater usage established by
the city during the "winter averaging wastewater charge period" based
upon their average monthly water consumption during that period. Thic
"c. Interim average: The monthly wastewater usage established by the
city for individual customers who have not established a "winter average
usage". The "interim average" shall -be -is recalculated each year based on
the total "winter average usage"-sensumption of all customers subject to
winter averaging divided by the number of winter averaging customers,
and shall -be -is the basis for monthly billings until a "winter average usage"
as defined in subsection (b)(1)b. of this section is established for the
individual customer.
"d. Service area: The geographic region served by the city's wastewater
system.
2011-2012 Wastewater Rate Ordinance 06302011.docx —21 0—
Page 3 of 6
"(2) Winter average criteria.
"a. The customer must receive wastewater service at one (1) location
during the three (3) consecutive reading periods in order to establish a
"winter average usage".
"b. "Winter average usage" charges shall apply to one -family residential
customers only.
"tc_The "winter average usage" shall be based on a customer's
average water consumption for three (3) complete consecutive reading
periods commencing with the customer's first reading period on or after
December 1 of each year.
"a -d. The following method will be used to calculate a customer's "winter
average usage":
"1. Add the three (3) winter months' water consumption to get total
water consumption.
"2. Divide three-month usage amount by three (3) to get winter
average usage. Such winter average usage shall be limited to a
maximum of twenty-five thousand (25,000) gallons.
"Eire. Using the winter average usage, apply the applicable rates
established in subsection (a) to calculate the customer's wastewater bill
for each month until a new winter average usage is established or rates
are changed. The adiusted rate that applies to service after June 30 will
reflect wastewater usage based on the previous "winter averaging
wastewater charge period".
"e-f_New and relocating customers; adjustments:
"1. Customers new to the service area, who have not established a
"winter average", shall be billed at the "interim average" rate.
"2. Customers who are relocating within the service area, who
established a "winter average" at their previous address, shall be
billed at the "interim average" rate or their "winter average" rate at
the previous address, whichever is less.
"3. Customers who are relocating within the service area, who
have not established a "winter average" at their previous address,
shall be billed at the "interim average" rate.
"4. When a customer experiences a substantial increase in water
or wastewater usage from hidden water leaks in the plumbing
system during the winter average charge period, and if the
2011-2012 Wastewater Rate Ordinance 06302011.docx
-211-
Page 4 of 6
customer can produce proof of repairs, the director of finance or the
director's designee may adjust the wastewater bill.
"(3) Administrative change in rates.
"a. Annually the city manager shall calculate base revenues from single-
family residential wastewater customers during the prior vear. Base
revenues shall equal the prior year's actual revenues from single-family
residential wastewater customers, adjusted for subseguent actual-any_rate
increacco changes, and for any increase in the single-family residential
wastewater customer base. For this purpose, a year shall run from June 1
through May 31.
"b. The city manager shall annually, based upon the winter average
wastewater usage determined during the winter averaging wastewater
charge period, adjust the rate in the new fiscal year applied to each
customer's winter average or interim average so that the adjusted rate will
produce an amount equal to the base revenues, plus any rate changes
approved by the City Council for the new fiscal vear.
"(c) The rates established in subsection (a) of this section are based upon water
consumption for wastewater service customers with wastewater characteristics of five
hundred sixty-two (562) parts per million or Tess by weight of chemical oxygen demand
index, two hundred fifty (250) parts per million or less by weight of biochemical oxygen
demand index, and two hundred fifty (250) parts per million or less by weight of
suspended solids index. If the wastewater characteristics exceed any of these
parameters shall pay an additional abnormal wastewater surcharges as provided in
section 55-148."
SECTION 3. In lieu of the procedures in Section 55-100(b)(3), Code of Ordinances, the
City Manager shall use the following procedure to make the administrative changes in
Fiscal Year 2011/2012 wastewater rates: The city manager shall calculate base
revenues from single-family residential wastewater customers using the Fiscal Year
2010/2011 calculated revenues from single-family residential wastewater customers, as
if the correct rates had been implemented on September 1, 2010 and for any increase
in the single-family residential wastewater customer base. For this purpose, a year
shall run from June 1 through May 31. Then based upon the winter average
wastewater usage determined for the winter averaging wastewater charge period, the
City Manager shall administratively adjust the Fiscal Year 2011/2012 wastewater rates
applied to each customer's winter average or interim average so that the
administratively adjusted Fiscal Year 2011/2012 rates will produce an amount equal to
the base revenues, plus any rate changes approved by the City Council in this
ordinance. For the purpose of this section the correct rates that should have been
implemented on September 1, 2010 are:
2011-2012 Wastewater Rate Ordinance 06302011.docx —21 2—
Page 5 of 6
Inside city limits
One -family minimum monthly charge (first
2,000 gallons)
$23.647
Inside city limits
One -family per 1,000 gallons over 2,000
4.780
Inside city limits
One -family maximum monthly charge (up
to 25,000 gallons)
133.590
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 of this ordinance be given full force and effect for its purpose.
SECTION 5. This ordinance is effective on August 1, 2011.
SECTION 6. 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.
2011-2012 Wastewater Rate Ordinance 06302011.docx
-213-
Page 6 of 6
That the foregoing or finance was read for the first time and passed to its second
U
reading on this the f day of , 2011, by the following vote:
Joe Adame _ David Loeb
Chris N. Adler k John E. Marez 4L_
Larry R. Elizondo, Sr. ..lr )L Nelda Martinez
Kevin Kieschnick ( Mark Scott
Priscilla Leal rJ
That the foregoing ordinance was read for the second time and passed finally on this
the day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry R. Elizondo, Sr. Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla Leal
PASSED AND APPROVED, this the day of , 2011.
ATTEST:
Armando Chapa Joe Adame
City Secretary Mayor
APPROVED: 30th day of June, 2011:
ay eining
First • ssistap City Attorney
For City Attorney
R
2011-2012 Wastewater Rate Ordinance 06302011.docx —21 4-
14
City of
Corpus
_ = Christi
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: July 20, 2011
TO: Ronald L. Olson, City Manager
FROM: Margie C. Rose, Assistant City Manager
margier@cctexas.com
(361) 826-3232
Adoption of Ordinance for creation of City Auditor
PURPOSE:
Ordinance providing for the hiring and qualifications of a City Auditor; preserving the Auditor's
independence; providing access to City records; determining distribution of audit reports; establishing the
powers and duties thereof; and providing for a peer review.
BACKGROUND AND FINDINGS:
On November 10, 2010, voters approved an amendment to the City Charter adding the position of City
Auditor who shall be appointed by and report to the City Council.
ALTERNATIVES:
None — City Charter requirement.
FINANCIAL IMPACT:
o Not Applicable X Operating Expense
o Revenue
❑ CIP
FISCAL YEAR: 2010-2011
Project to Date Exp.
(CIP Only)
Current
Year
Future
Years
TOTALS
Budget
0
0
Encumbered/Expended
amount
0
0
This item
0
259,914
259,914
BALANCE
0
0
259,914
259,914
FUND(S): General Fund
Comments: The FY 2011-2012 budget includes funding for the salaries of the City Auditor and two
support positions.
—217—
RECOMMENDATION:
Staff recommends approval of the ordinance.
CONFORMITY TO CITY POLICY:
This ordinance adheres to City Charter requirements.
EMERGENCY / NON -EMERGENCY:
Non -emergency - this ordinance requires two readings.
DEPARTMENTAL/ OTHER CLEARANCES:
City Council Administration Committee
Human Resources
Legal
LIST OF SUPPORTING DOCUMENTS:
Ordinance
PowerPoint presentation
Cc: Lisa Aguilar, Assistant City Attorney
Constance P. Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
—218—
1
ORDINANCE
PROVIDING FOR THE HIRING AND QUALIFICATIONS OF A CITY AUDITOR;
PRESERVING THE AUDITOR'S INDEPENDENCE; PROVIDING ACCESS TO CITY
RECORDS; DETERMINING DISTRIBUTION OF AUDIT REPORTS; ESTABLISHING
THE POWERS AND DUTIES THEREOF; AND PROVIDING FOR A PEER REVIEW.
WHEREAS, on November 2, 2010, voters approved an amendment to the City Charter
adding the position of City Auditor who shall be appointed by and report to the City
Council;
WHEREAS, Article II, Section 29(a) of the City Charter provides for the City Council to
appoint a City Auditor;
WHEREAS, Article II, Section 29(b) of the City Charter provides that the City Auditor
shall report to the City Council and have such duties, responsibilities, and staff as
determined by ordinance, including the responsibility to conduct, or cause to be
conducted, financial, performance, investigative, and other audits following government
auditing standards as promulgated by the Comptroller General of the United States;
WHEREAS, modern internal auditing objectively evaluates and reports not only
whether government funds are handled properly and in compliance with laws and
regulations, but also whether government organizations, programs, and services are
achieving the purposes for which they were authorized and funded and whether they
are doing so economically, efficiently, and effectively; and
WHEREAS, close cooperation between the City Council, City Management and the
City Auditor is essential to facilitate the City's commitment to provide cost effective,
high quality service to the community;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI:
SECTION 1. The Code of Ordinances of the City of Corpus Christi, Texas, is hereby
amended by adding a new Chapter 5 as follows:
"Chapter 5. CITY AUDITOR
Section 5-1. Establishment of the office of City Auditor.
(a) There is hereby established the Office of the City Auditor, which shall be directed
by the City Auditor who shall be appointed by affirmative vote of a majority of the
entire membership of the City Council.
(b) The City Auditor must:
(1) be a person •knowledgeable in performance and financial auditing, public
H:\LEG-DIR\Lisa\2011 Ordinance\AUDITOR 99NANCE 5 dean.docx
2
administration, and public financial and fiscal practices;
(2) be licensed as a Certified Public Accountant or Certified Internal Auditor, and
(3) exercise due professional care in carrying out his or her responsibilities, and
provide reasonable assurance that due professional care will be employed in
conducting audits. The City Auditor will establish audit policies and procedures
consistent with Government Auditing Standards, established by the Comptroller
General of the United States, as well as applicable laws and regulations.
Section 5-2. Independence, objectivity, and audit standards.
(a) The organization and administration of the auditor's office shall be sufficiently
independent to assure that no interference or influence shall adversely affect an
independent and objective judgment of the auditor.
(b) The Office shall be provided a discrete budget sufficient to carry out the
responsibilities and functions established in this ordinance.
(c) The City Auditor shall establish an organizational structure appropriate to
carrying out the responsibilities and functions of this ordinance.
(d) No person shall be appointed to the position of City Auditor who has been Mayor,
Council Member, or City Manager of the City during a period of five years prior to the
date of the City Auditor's appointment. In no case shall the City Auditor be related, by
affinity or consanguinity within the second degree, to the Mayor, any Council Member or
the City Manager.
(e) The City Auditor shall not be actively involved in partisan political activities of the
City of Corpus Christi.
(f) Neither the City Auditor nor any member of the Office staff shall conduct or
supervise an audit of an activity for which they were responsible or within which they
were employed during the preceding two nears.
(g) The City Auditor shall adhere to Government Auditing Standards, insofar as
possible, when conducting the City Auditor's work and will be independent as defined
by those standards.
(h) The responsibility for selection of audit areas shall initiate with the City Auditor,
with due consideration of the interests and concerns of the City Council and City
Manager. To accomplish this:
(1) no less than thirty (30) days prior to the beginning of each fiscal
year the City Auditor shall submit an annual audit plan to the City
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3
Council through the Council Administrative Committee for review and
comment. The plan shall include identification of the scope of each
audit to be conducted in terms of the organizations, services, programs,
functions, and activities to be audited and in terms of the potential audit
elements to be addressed. The Council Administrative Committee shall
forward the plan to the City Council for City Council review and final
approval;
(2) the annual audit plan may be amended during the year, following
notification of the Council Administrative Committee and due provision
for comment. Such amendments may be initiated by the City Auditor, or
requested by the Council Administrative Committee, or the City
Manager, or City Manager's designee; any amendments to the annual
plan must be reviewed by and approved by City Council;
(3) Results of special audits shall be distributed in the same manner as
all other audit reports, as provided in Section 5-5, Preparation and
Release of Reports, of this ordinance;
(4) if the City Auditor determines that there is serious concern
regarding fraud, abuse, or illegality, or that the scope of an audit in
progress should be expanded as the result of any findings, the City
Auditor is authorized to initiate spontaneously and conduct, or expand
the scope of, an audit beyond that approved in the work program. The
City Auditor shall notify the Council Administrative Committee of the
change.
(5) Notwithstanding the calendar identified above in subsection (h)(1),
the initial audit plan for remainder of the fiscal year ending July 31, 2012
shall be prepared by the City Auditor and submitted to Administrative
Committee, for review and comments by Administrative Committee,
within thirty (30) days of appointment of City Auditor. The initial audit
plan shall then be submitted to City Council for its review and final
approval.
(i) Within the budget approval process and personnel policies established by the
City Council for all departments, the City Auditor shall have the power to appoint
employ, and remove such assistants, employees, and personnel as he/she may deem
necessary for the efficient and effective administration of the affairs of the office of the
City Auditor. All employees of the City Auditor's Office shall be in the classified
personnel service except the City Auditor and City Auditor assistants as designated by
the City Auditor.
(j) Neither the City Manager, nor Assistant City Manaqers, nor the Council nor any
of its members shall in any manner dictate the appointment or removal of any such
officer or employee whom the City Auditor is empowered to appoint, subject to any duly
authorized grievance procedure.
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4
(k) As provided in the City Charter, Article IL Section 29(a); the City Auditor may be
removed only by a maioritv of the City Council.
Section 5-3. Council review.
(a) The appointment of Council Administrative Committee members will be decided
annually in August. However, if a committee has not been appointed, then the duties of
the Council Administrative Committee as described in this ordinance shall be
undertaken by the entire City Council.
(b) The duties of the committee with respect to the City Auditor are described below:
a. To review and provide comments regarding the City Auditor's annual work
program, to be formally reviewed and approved by City Council each year;
b. To monitor the City's internal controls through the results of external
audits, and internal audits and other activities of the City Auditor; and
c. To monitor audit results and follow-up activities of the City Auditor,
The City Auditor shall have direct communication with the Council Administrative
Committee, and attend all Council Administrative Committee meetings.
Section 5-4. Access to records and property.
All officers and employees of the City shall provide free and open access to and furnish
the City Auditor or employees in the Office of the City Auditor with requested
information, records, books, accounts, internal memoranda, writings and tapes, reports,
correspondence files, computer data, reports, money, and other information and
property in their custody. In addition, they shall provide access for the City Auditor to
inspect all property, equipment, and facilities within their custody and observe any
operations for which they are responsible.
Section 5-5. Preparation and release of reports.
(a)
Each audit shall result in a report which shall:
(1) Be transmitted in draft to the City Manager, who will provide a written
response to the City Auditor regarding the audit findings and recommendations
within an agreed time frame. The response will indicate agreement or
disagreement and reasons for any disagreements and what actions, if any will
be taken. The City Auditor will include the responses in the final report, unless
they are not received within the established time frame;
(2) Be submitted in final form to the City Council and the City Manager, and
shall be retained in the City Auditor's office as a permanent record,
(3) Adhere to reporting standards for financial and performance audits as
described in Governmental Audit Standards.,
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5
(b) When appropriate, the City Auditor may issue other reports as needed which
provide information when an audit is not required. These reports present work
that is generally advisory in nature.
Section 5-6. Powers and duties.
(a) The City Auditor shall systematically and continuously examine the works of all
City operations to identify opportunities to reduce costs, increase efficiency quality, and
effectiveness, or otherwise improve management of City programs and services.
(b) Scope of work. The City Auditor is empowered to conduct performance and
other audit work to determine whether
(1) Activities and programs being implemented have been authorized by the
Council, or some other legal authority, and are being conducted in a manner
contemplated to accomplish the objectives intended by the Council or other
authorizing authority;
(2) The effectiveness of organizations, programs, activities, functions or
policies, and the extent to which desired results or benefits are being achieved;
(3) The audited entity is acquiring, protecting, and using its resources (such
as personnel, property, and space) economically and efficiently, and the causes
of inefficiencies or uneconomical practices;
(4) The audited entity is in compliance with Council or other legally imposed
mandates regarding efficiency, economy, effectiveness, or expenditure of public
funds;
(5) Systems of administrative and accounting control have been established
by management to effectively, economically, and efficiently carry on the City's
operations;
(6) Financial and performance reports are being provided that disclose fairly
accurately, and fully all information that is required by law or other established or
state criteria that is necessary to ascertain the nature and scope of programs and
activities, and that is necessary to establish a proper basis for evaluating the
results of programs and activities.
(c) Follow-up on audits. The City Auditor shall ensure accountability and
implementation of a continuous improvement process by an annual status report of prior
audit recommendations. Accordingly:
(1) Six months after the transmittal of an audit report to the Council, the City
Auditor shall request a status report on actions taken by appropriate officials in
response to the audit recommendations;
(2) The City Auditor may request additional periodic status reports and
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6
conduct follow-up review as needed;
(d) Report of Irregularities. If the CAT Auditor detects apparent violation of law, or
apparent instances of misfeasance or nonfeasance by an officer or employee, or
information that indicates derelictions may be reasonably anticipated, the Auditor shall,
after consultation with and advice from the City Attorney, immediately report the
irregularities to the appropriate authority, including the City Manager. If the irregularity
is criminal in nature, the Auditor shall also notify the appropriate chief prosecuting
attorney.
(e) Contract auditors, consultants, and experts. Through appropriate procurement
requirements and within the limits of the adopted budget, the Auditor may obtain the
services of certified or registered .public accountants, qualified management
consultants, or other professional experts necessary to perform the Auditor's duties.
(f) The City Auditor shall meet with the external auditors to discuss pertinent
matters, review the financial statements, auditors' opinions, and management letters
resulting from the annual financial audit.
Section 5-7. Peer review.
(a) Authority Statement — The City Auditor's Office shall within three years of date of
this ordinance be subject to peer review and thereafter not less than once every
three years by a professional, non-partisan, objective person or group, comprised
of auditors and other professionals with appropriate government auditing
expertise and experience.
(b) Scope of peer review — The peer review shall determine compliance with
Government Auditing Standards and the quality of audit effort and reporting
including:
(1) General standards such as staff qualifications, due professional care, and
quality assurance;
(2) Fieldwork standards such as planning, supervision, and audit evidence;
(3) Reporting standards such as report content, presentation, and timeliness.
(c) Reporting — A cop/ of the written report of the peer review shall be furnished to each
member of the City Council after review and approval by the Council Administrative
Committee.
(d) Cost — The cost of the peer review, including reasonable travel and living expenses,
shall be paid from funds budgeted specifically in the City Auditor's budget.
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7
Section 5-8. City Auditor Vacancy —Selection process.
(a) At such times when a vacancy occurs in the Office of the City Auditor, the first
principal assistant shall act in the capacity of City Auditor pending the appointment of a
new City Auditor.
(b) The Council shall appoint an ad hoc nominating committee to recommend to the
City Council candidates for City Auditor. The committee shall consist of five members,
including a chair and vice -chair selected by majority vote of members, meeting the
following qualifications:
(1) Three members shall be members of the City Council nominated by the
Council Administrative Committee.
(2) One member shall be an at Targe City of Corpus Christi resident.
(3) One member shall be the City Manager or his or her designee.
(c) The full committee shall, within 15 days of its appointment, hold its first meeting to
consider applicants to serve as City Auditor. Within 90 days of its first meeting, the
committee shall recommend to the City Council three candidates selected by a majority
of the committee members. The City Council shall, within 15 days after receipt of the
recommendation of three candidates, select a City Auditor."
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. This ordinance is effective upon final approval of City Council.
SECTION 4. 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.
H:\LEG-DIR\Lisa\2011 Ordinance\AUDITOR QRDINANCE 5 clean.docx
That the foregoing ordinance was read for the first time and passed to its second
reading on this the day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry Elizondo Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla G. Leal
That the foregoing ordinance was read for the second time and passed finally on this
the day of , 2011, by the following vote:
Joe Adame David Loeb
Chris N. Adler John E. Marez
Larry Elizondo Nelda Martinez
Kevin Kieschnick Mark Scott
Priscilla G. Leal
PASSED AND APPROVED, this the day of , 2011.
ATTEST:
Armando Chapa
City Secretary
APPROVED as to form: July 20, 2011
By:
Lisa Agu
for the
Assistant City Attorney
y Attorney
Joe Adame
Mayor
—226—
ORDINANCE
for
CITY AUDITOR
BACKGROUND
Voter approved election was held November 2, 2010
Language stated:
"Adding the position of City Auditor who shall be
appointed by and report to the City Council"
TIMELINE TO DATE
1/25/11 Council discussed City Auditor appointment
process
4/12/11 Council discussed job descriptions
5/6/11 - 5/18/11 RFP open
5/10/11 - 5/24/11 City Auditor, Associate Auditor and
Senior Accountant positions posted
6/14/11 Administration Committee recommended that
City Council review two options:
1. Hiring full-time staff
2. Contracting the service
CITY COUNCIL ACTION
Administrative Committee will continue to be involved
with the process
Move forward with the position of City Auditor
Create an Ordinance developing policies and
procedures that govern the working relationship
ORDINANCE HIGHLIGHTS
Establishment of the Office of City Auditor.
• The City Auditor shall be appointed by a majority vote of the City
Council;
• The City Auditor shall be a Certified Public Accountant or Certified
Internal Auditor; and
• The City Auditor will report to the City Council.
Independence, objectivity, and audit standards:
• The organization and administration of the auditor's office shall be
sufficiently independent to assure than no interference or influence
shall adversely affect an independent and objective judgment of the
auditor;
• No person shall be appointed to the position of City Auditor who has
been Mayor, Council Member or CityManager duringa period of five
yearsprior to the date of the CityAditor's a ointenIn no case
hall he CityAuditor be relatedbyaffinityconsanguinityorpwithin the
second degree, to the Mayor, anyCuncil ember or the City Manager.
g Y g
5
ORDINANCE HIGHLIGHTS
• The responsibility for selection of audit areas shall
initiate with the City Auditor, with due consideration of
the interests and concerns of the City Council and City
Manager. To accomplish this:
1. No less than 3o days prior to the beginning of each fiscal
year the City Auditor shall submit an annual plan to the City
Council through the Council Administrative Committee for
review and comment. The Committee shall forward the
plan to the City Council for review and final approval;
2 . The annual plan may be amended during the year.
• The City Auditor may be removed only by a majority of
the City Council.
6
ORDINANCE HIGHLIGHTS
Council Review.
• The Council Administrative Committee shall review and provide
comments regarding the Auditor's annual work program, to be
formallyreviewed and approved byCityCouncil each year; monitor
the City's internal controls through thresults of exteral and
Y g
internal audits and other activities of the City Auditor.
• The City Auditor shall have direct communication with the
Administrative Committee and attend all Administrative
Committee meetings.
Access to records and property.
• All officers and employees of the City shall provide free and open
access to and furnish the Auditor with requested information,
records, books, accounts, internal memoranda, writings and tapes,
reports, correspondence files, computer data, and other
information and property in their custody.
7
ORDINANCE HIGHLIGHTS
Preparation and release of reports.
• Each audit shall result in a report which shall be transmitted in draft to
the City Manager who will provide a written response regarding the
audit findings and recommendations within an agreed time frame. The
Auditor will include the responses in the final report unless they are
not received within the established time frame.
• Final reports will be submitted to the City Council and the City
Manager.
Powers and duties.
• The City Auditor is empowered to conduct performance and other
audit work to determine whether:
activities and programs being implemented have been authorized by the
Council, or some other legal authority;
2. effectiveness of organizations, programs, activities, functions or policies;
3. Financial and performance reports are being provided that disclose fairly,
accurately and fully all information that is required by law.
8
ORDINANCE HIGHLIGHTS
• The City Auditor shall ensure accountability and
implementation of a continuous improvement process
by an annual status report of prior audits.
Six months after transmittal of report to City Council, a
status report shall be requested on actions taken by
appropriate officials
May request additional periodic status reports
• Detection of apparent violation of law, after
consultation with and advice from the City Attorney,
will immediately be reported to the appropriate
authority including the City Manager.
9
ORDINANCE HIGHLIGHTS
Peer Review.
• The City Auditor's Office shall within three years of date of
this ordinance be subject to peer review and thereafter not
less than once every three years by a professional, non-
partisan, objective person or group, comprised of auditors
and other professionals with appropriate government
auditing expertise and experience.
• The peer review shall determine compliance with
Government Auditing Standards and the quality of audit
effort and reporting.
• The written review shall be provided to the City Council after
review and approval by the Council Administrative
Committee.
• The peer review shall be paid from the City Auditor's budget.
ORDINANCE HIGHLIGHTS
City Auditor Vacancy - Selection Process.
• When a vacancy occurs, the first principal assistant shall act
in the capacity of City Auditor pending the appointment of
the City Auditor;
• The City Council shall appoint an ad hoc nominating
committee to recommend the candidates to City Council
The Committee shall consist of five members:
Three shall be City Council members nominated by the Council
Administrative Committee,
One shall be an at large resident of Corpus Christi, and
One shall be the City Manager or designee.
• Within 90 days of the first meeting, the
Committee shall recommend three candidates to the City
Council; the City Council shall appoint a City Auditor within
15 days of receiving the recommendation.
NEXT STEP
First reading of Ordinance July 26, 2011
Second reading and final adoption of ordinance,
August 23, 2011
QUESTIONS
15
edit City of
Corpus
Christi
w -r
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: June 29, 2011
TO: Ronald L. Olson, City Manager
FROM: Pete Anaya, P.E., Director of Engineering Services
petean@cctexas.com
(361)826-3781
m
Approval of Land Acquisition Legal Services Contract:
Mary Rhodes Pipeline Phase 2 (Project No. E10008)
Parent Project: Garwood Water Supply Project (Project No. 8424)
PURPOSE:
A. Resolution determining that a public necessity exists for the acquisition of easements for the Mary
Rhodes Pipeline Phase 2 Improvements Project for the public purpose, use and construction of a
water pipeline; and authorizing the City Manager, City Attomey and Agents of the City to acquire
the easements by means of negotiations or eminent domain, if necessary.
B. Motion authorizing the City Manager, or designee, to execute a Legal Services Agreement with
Bruce Hawn, Welder Leshin, LLP, to represent the City in environmental services, permits, and
land acquisition matters associated with acquisition of Mary Rhodes Pipeline Phase 2
easements, at an hourly rate of $250.00, plus expenses, subject to certification of funds.
BACKGROUND AND FINDINGS:
A preferred alignment of the Mary Rhodes Pipeline Phase 2 project has been completed and
submitted to the Texas Water Development Board for their concurrence and approval.
Securing Phase 2 pipeline permanent easement and temporary construction easement
instruments will ensure the City will have the ability to complete this project in a comprehensive and
timely manner. This is the next phase of the Garwood Water Supply Project, "Mary Rhodes Pipeline
Phase 2", that, when commissioned, will support continued growth in the following counties: Aransas,
Bee, Brooks, Duval, Jim Wells, Kennedy, Kleberg, Live Oak, McAllen, Nueces and San Patricio.
Proiect Description: This is part of the Garwood Water Supply Project to extend the Mary
Rhodes Raw Water Pipeline. The project consists of a new pipeline that will transport raw water
from a new intake pump station and booster pump station on the Colorado River near Bay City
to the Lavaca Navidad River Authority's existing West Water Delivery Station south of Lake
Texana and into the existing Mary Rhodes Pipeline. The water will be transported to the City of
Corpus Christi through the Mary Rhodes Pipeline and facilities to be used by the City for
irrigation, municipal and industrial purposes.
The proposed project consists of an intake pump station on the Colorado River, a sedimentation
basin adjacent to the Colorado River, a booster pump station and 54" pipe that connects the
Colorado River near Bay City to the existing Mary Rhodes Phase pipeline. Project construction
C:\DOCUME-1\REBECC-1.CCPLLOCALS-1\TEMPU(PGRPWISEWARV RHODES PIPELI 2EPHASE 2- LEGALSERVICES.DOCX
Page 2 of 3
is planned to be completed in four parts to allow maximum competition and accelerated
construction by concurrently completing the four parts.
1. Colorado River Intake, Booster Pump Station and Sedimentation Basin with tie-in to the
Lake Texana Intake Pump Station;
2. Garwood Raw Water Pipeline, east section;
3. Garwood Raw Water Pipeline, central section; and
4. Garwood Raw Water Pipeline, west section.
Electrical substations and power transmission lines will be provided by the electrical utility
franchises.
Land Acquisition Legal Services: The proposed contract provides legal services necessary to
negotiate and secure requisite project land acquisition parcel instruments for the construction
and commission of proposed Mary Rhodes Pipeline Phase 2 project improvements. Legal
services include parcel negotiations, parcel instrument preparation and execution. The legal
services do not include the filing of any condemnation proceedings, but includes the preparation
for condemnation proceedings on all parcels if necessary. The contract outcome will be the
provision of a full pipeline easement and supporting infrastructure land acquisition complete and
in place prior to commencement of the final design.
The estimated cost of construction for the Mary Rhodes Pipeline Phase 2 is $129,000,000
(2013 Dollars — includes 30% contingency). The legal services fee proposal for this contract is
not to exceed $812,500; therefore, the percentage of land acquisition legal services cost to
construction cost for this contract is 0.62%.
The attorney will initiate the design phase and acquisition of approximately 200 land parcels.
The purchase of the land parcels will be funded from the Water Capital Improvement Program
Budget.
Attorney Selection: The firm of Welder Leshin LLP provided land acquisition legal services for
the Mary Rhodes Pipeline Phase 1 infrastructure. The involvement will provide continuity and
take advantage of previously established legal expertise.
Future Council Action: Approval for purchase of the land parcels and approval of the
construction contract to complete the project will be required.
ALTERNATIVES:
No action.
Delay easement land acquisition activity.
OTHER CONSIDERATIONS:
Either alternative will adversely impact City's ability to exercise and deliver water rights secured from
Garwood Irrigation Company. Delay in easement acquisition will put proposed current pipeline activity
in jeopardy. Securing easement rights in advance of final design and construction gives City time and
flexibility as to when future infrastructure investment is made.
C:DOCUME-11REBECC-1.CCPILOCALS-1\TEMP1XPGRPWISEWARY RHODES PIPELINEPH SE2- LEGALSERVICES.DOCX
FINANCIAL IMPACT:
❑ Not Applicable
o Operating Expense o Revenue X CIP
Page 3 of 3
Comments: The anticipated schedule for the contract is from August 1, 2011 through July 30, 2012.
The legal services fee proposal is not to exceed $812,500. The legal services do not include the filing
of any condemnation proceedings, but includes the preparation for condemnation proceedings on all
parcels if necessary. Thus, the not to exceed figure is a worst case scenario.
RECOMMENDATION:
City staff recommends that the Legal Services Agreement be awarded to Bruce Hawn, Welder
Leshin, LLP at an hourly rate of $250.00, plus expenses for Mary Rhodes Pipeline Phase 2.
CONFORMITY TO CITY POLICY:
Conforms to statutes regarding FY 2011-12 Capital Budget.
EMERGENCY / NON -EMERGENCY:
Not applicable.
DEPARTMENTAL CLEARANCES:
Water
Legal
LIST OF SUPPORTING DOCUMENTS:
Contract Summary
Project Budget
Location Map
CC: Veronica Ocanas, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
Juan Perales, Jr., P.E., Assistant City Manager
C:\DOCUME-1\REBECC-1.CCPILOCALS-1VtEMPV(PGRP.NISEUAARY RHODES PIPELIRE PHASE 2 - LEGAL SERVICES.DOC%
Prior Year
(CIP Only)
Current Year
Future Years
TOTALS
FISCAL YEAR: 2010-2011
Budget
$9,236,900
$1,500,000
$2,518,100 *
$13,255,000
Encumbered/Expended Amt. as of June
29, 2011
(9,236,900)
(9,236,900)
This item
(812,500)
(812,500)
BALANCE
FUND(S): Water
$0
$687,500
$2,518,100
$3,205,600
* This amount is for land acquisition only and does not include the cost of construction of the pipeline.
Comments: The anticipated schedule for the contract is from August 1, 2011 through July 30, 2012.
The legal services fee proposal is not to exceed $812,500. The legal services do not include the filing
of any condemnation proceedings, but includes the preparation for condemnation proceedings on all
parcels if necessary. Thus, the not to exceed figure is a worst case scenario.
RECOMMENDATION:
City staff recommends that the Legal Services Agreement be awarded to Bruce Hawn, Welder
Leshin, LLP at an hourly rate of $250.00, plus expenses for Mary Rhodes Pipeline Phase 2.
CONFORMITY TO CITY POLICY:
Conforms to statutes regarding FY 2011-12 Capital Budget.
EMERGENCY / NON -EMERGENCY:
Not applicable.
DEPARTMENTAL CLEARANCES:
Water
Legal
LIST OF SUPPORTING DOCUMENTS:
Contract Summary
Project Budget
Location Map
CC: Veronica Ocanas, Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
Juan Perales, Jr., P.E., Assistant City Manager
C:\DOCUME-1\REBECC-1.CCPILOCALS-1VtEMPV(PGRP.NISEUAARY RHODES PIPELIRE PHASE 2 - LEGAL SERVICES.DOC%
LAND ACQUISITION LEGAL SERVICES
CONTRACT SUMMARY
SUBJECT: Mary Rhodes Pipeline Phase 2 (Project No. E10008 / CIP No: WA 09)
Parent Project: Garwood Water Supply Project (Project No. 8424)
Land Acquisition Legal Services
1. SCOPE OF SERVICES: Land Acquisition Legal Services, including, but not limited to:
a. General Administrative -- Provide requisite administrative support to include
meetings with and progress updates to City and City NE consultant.
b. Standardized Form Preparation -- Prepare standardized forms, including, but not
limited to, a base easement form, situational alternative provisions, temporary
work space agreements, road use agreements, and other requisite forms that
support the project's land acquisition effort.
c. Survey & Legal Description Review -- Review of the legal descriptions in terms
of accuracy and format used for the property conveyance of respective land
acquisition instruments.
d. Tract Specific Work -- Provide negotiated customized easement instruments and
agreements with affected land owners.
e. Condemnation Preparation — If necessary, prepare supporting documents for
special commissioners presentations, hearings, and award. (Actual
condemnation actions will require separate, specific authorization.)
f. Paralegal Work -- Provide paralegal work necessary to complete legal
documents and exhibits associated with the project land acquisition.
2. SCHEDULE
DAY
DATE
ACTIVITY
Monday
August 1, 2011
Begin Survey & Legal Description Review
Monday
October 3, 2011
Begin Tract Specific Work
Monday
December 5, 2011
Begin Land Acquisition Negotiations
Monday
July 30, 2012
Complete Land Acquisition
1 Page 1 of 2 I
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Summary 07122011.docx
3. FEES
*The proposed fees are based upon a "not to exceed" allowance by Additional Service task
item. It is anticipated that condemnation proceedings can be minimized with a favorable
negotiating climate between the City and affected land owners.
The proposed fee schedule above is based upon an avoidance of condemnation proceedings,
which will result in additional tract specific work. The working, not to exceed, budget of
$812,500 is structured to insure the City secures all associated parcels for the project.
Page 2 of 2
H:IHOME1VeImaP\GENIWATERIE10008 MARY RHODES PIPELINE PHASE 21LAND ACaI24ION LEGAL SERVICESWGENDAS CONTRACT SUMMARY Hawn Legal Services
Summary 07122011.docx L Y / —
ORIGINAL
CONTRACT
(El 0008)
BASIC SERVICES
1
Study Phase (Not Applicable)
$0.00
2
Preliminary Phase (Not Applicable)
0.00
3
Design Phase (Not Applicable)
0.00
4
Bid Phase (Not Applicable)
0.00
5
Construction Phase (Not Applicable)
0.00
Subtotal Basic Services
$0.00
ADDITIONAL LEGAL SERVICES
General Administrative
$37,500.00
Standardized Form Preparation
25,000.00
Survey & Legal Description Review
28,750.00
Tract Specific Work
229 250.00
Condemnation Preparation, if necessary
460,000.00
Paralegal Work
32,000.00
Subtotal Additional Legal Services
$812,500.00*
*The proposed fees are based upon a "not to exceed" allowance by Additional Service task
item. It is anticipated that condemnation proceedings can be minimized with a favorable
negotiating climate between the City and affected land owners.
The proposed fee schedule above is based upon an avoidance of condemnation proceedings,
which will result in additional tract specific work. The working, not to exceed, budget of
$812,500 is structured to insure the City secures all associated parcels for the project.
Page 2 of 2
H:IHOME1VeImaP\GENIWATERIE10008 MARY RHODES PIPELINE PHASE 21LAND ACaI24ION LEGAL SERVICESWGENDAS CONTRACT SUMMARY Hawn Legal Services
Summary 07122011.docx L Y / —
\Mproj.ct \councilsxhibits\E100o8.dwg
MARY RHODES PIPELINE
PHASE 2
CITY COUNCIL EXHIBIT
CRY OF CORPUS CHRISTI, TEXAS
DEPARTMENT OF ENGINEERING SERVICES
PAGE: 1 of 1
DATE: 07/12/2011
..w
-248-
RESOLUTION
DETERMINING THAT A PUBLIC NECESSITY EXISTS FOR THE
ACQUISITION OF EASEMENTS FOR THE MARY RHODES PIPELINE
PHASE 2 IMPROVEMENTS PROJECT FOR THE PUBLIC PURPOSE,
USE AND CONSTRUCTION OF A WATER PIPELINE; AND
AUTHORIZING THE CITY MANAGER, CITY ATTORNEY AND AGENTS
OF THE CITY TO ACQUIRE THE EASEMENTS BY MEANS OF
NEGOTIATIONS OR EMINENT DOMAIN, IF NECESSARY.
WHEREAS, the City of Corpus Christi ("City") has implemented the Mary Rhodes
Pipeline Phase 2 Improvements Project (the "Project"); and
WHEREAS, the Project has entered into the acquisition phase; and
WHEREAS, the City Council of the City of Corpus Christi, Texas ("City Council")
believes that a public necessity exists for the Project and believes that a public
necessity exists for the acquisition of certain property rights, consisting of easement
rights in parcels necessary for the Project; and
WHEREAS, the City Council believes that the easements should be acquired by means
of negotiation or eminent domain, if necessary;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the City Council by this Resolution determines that a public necessity
exists for the use and construction of a water pipeline as part of the Project, and that it
is necessary for the public welfare and convenience to acquire certain easement rights
for completing the Project.
SECTION 2. That the City Manager, City Attorney and agents of the City are authorized
to act on behalf of the City to acquire the easements, either by negotiating or by filing, or
causing to be filed, condemnation proceedings under Texas law in the event the
consideration to be paid for the easements cannot be agreed upon during negotiation.
SECTION 3. That this Resolution shall take effect immediately.
SECTION 4. That if any provision, section, subsection, sentence, clause, or phrase of
this Resolution, or the application of the same to any person or set of circumstances is
for any reason held to be unconstitutional, void, or invalid, the validity of the remaining
portions of this Resolution shall not be affected thereby, it being the intent of the City
Council in adopting this Resolution that no portion hereof, or provisions or regulation
contained herein, shall become inoperative or fail by reason of any unconstitutionality or
invalidity of any other portion hereof and all provisions of this Resolution are declared to
be severable for that purpose.
1 of 3
—249-
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa Joe Adame
City Secretary Mayor
Approved as to form: Suwe i s , 2011.
By: o.y�..�/"
L. Brian Narva€z
Assistant City Attorney
for City Attorney
2 of 3
—250—
day of 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John Marez
Nelda Martinez
Mark Scott
Linda Strong
3 of 3
—251-
16
City of
Corpus
Chnsti
wrsose
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: July 14, 2011
TO: Ronald L. Olson, City Manager
THROUGH: Rudy Garza, Interim Assistant City Manager
rudyga@cctexas.com
(361) 826-3082
FROM: Mike Culbertson, VP
Corpus Christi Regional Economic Development Corporation
mculbertson@ccredc.com
(361) 882-7448
Type A Grant and Temporary Tax Abatement for Commercial Metals Company
(CMC)
PURPOSE:
a. Ordinance appropriating $132,600 from the unreserved fund balance in the No. 1140
Business/Job Development fund for a grant from the Corpus Christi Business and Job
Development Corporation to Commercial Metals Company for development of a new secondary
metal processing facility on Bronco Road within the City of Corpus Christi, in which CMC will
invest at least $20,000,000 in building improvements, furniture, fixtures, and equipment and will
retain at least 39 current full-time jobs and create and maintain at least 12 new full-time jobs
with an average annual salary of at least $31,500 over a five year period; changing the FY
2010-2011 operating budget, adopted by ordinance No. 028252 by increasing proposed
expenditures by $132,600; and declaring an emergency
b. Resolution approving a business incentive agreement for the creation and retention of jobs
between the Corpus Christi Business and Job Development Corporation and Commercial
Metals Company ("CMC"), which provides a grant of up to $132,600, for development of a new
secondary metal processing facility on Bronco Road within the City of Corpus Christi, in which
CMC will invest at least $20,000,000 in building improvements, furniture, fixtures, and
equipment and will retain at least 39 current full-time jobs and create and maintain at least 12
new full-time jobs with an average annual salary of at least $31,500 over a five year period and
authorizing the City Manager or designee, to execute a business incentive project support
agreement with the Corpus Christi Business and Job Development Corporation regarding
implementation and administration of the CMC, business incentive agreement for the creation
and retention of jobs
c. Resolution authorizing the execution of an agreement with Commercial Metals Company
providing for temporary property tax abatement
-255-
Page 2 of 3
BACKGROUND AND FINDINGS:
CMC plans to open a metals recycling facility on Bronco Road within Corpus Christi. They will
retain 39 jobs and create 12 new jobs. They plan to invest $20 million in the new facility. The Corpus
Christi Business and Job Development Corporation approved the Type A grant incentive on April 18,
2011.
ALTERNATIVES:
This incentive provides the majority of the benefit to the company. Without which they would
look at other sites that are out-of-state.
OTHER CONSIDERATIONS:
The net economic impact on Corpus Christi is $715,929 in the first ten years of operations.
They will add $4,668,855 for the entire region, the majority of the benefits will be to the school district.
FINANCIAL IMPACT:
o Not Applicable o Operating Expense
o Revenue
❑ CIP
FISCAL YEAR: 2011
Project to Date Exp.
Current
Future
TOTALS
(CIP Only)
Year
Years
Budget
0
Encumbered/Expended
amount as of 06/30/2011
0
This item
0
132,600
132,600
BALANCE
0
0
132,600
132,600
FUND(5): Type A
Comments: The grant will only be paid out if CMC achieves their goals.
RECOMMENDATION:
Staff recommends that the City Council authorize the City Manager to enter into a five year
Type A agreement with CMC.
CONFORMITY TO CITY POLICY:
This project is consistent with the City's stated goals of promoting economic development.
EMERGENCY / NON -EMERGENCY:
Emergency
DEPARTMENTAL CLEARANCES:
Legal Department
Finance Department
Corpus Christi Regional Economic Development Corporation
-256-
LIST OF SUPPORTING DOCUMENTS:
Page 3 of 3
Resolution Type A Grant
Ordinance Type A Grant
CMC Type A Agreement
Agreement between the City and the Business and Job Development Corporation
Resolution Tax Abatement
Cc: Jay Reining, First Assistant City Attorney
Constance Sanchez, Interim Director of Financial Services
Eddie Houlihan, Assistant Director of Management and Budget
—257—
Page 1 of 3
ORDINANCE
APPROPRIATING $132,600 FROM THE UNRESERVED FUND
BALANCE IN THE NO. 1140 BUSINESS/JOB DEVELOPMENT FUND
FOR A GRANT FROM THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION TO COMMERCIAL METALS
COMPANY FOR DEVELOPMENT OF A NEW SECONDARY METAL
PROCESSING FACILITY ON BRONCO ROAD WITHIN THE CITY OF
CORPUS CHRISTI, IN WHICH CMC WILL INVEST AT LEAST
$20,000,000 IN BUILDING IMPROVEMENTS, FURNITURE, FIXTURES,
AND EQUIPMENT AND WILL RETAIN AT LEAST 39 CURRENT FULL-
TIME JOBS AND CREATE AND MAINTAIN AT LEAST 12 NEW FULL-
TIME JOBS WITH AN AVERAGE ANNUAL SALARY OF AT LEAST
$31,500 OVER A FIVE YEAR PERIOD; CHANGING THE FY 2010-2011
OPERATING BUDGET, ADOPTED BY ORDINANCE NO. 028252 BY
INCREASING PROPOSED EXPENDITURES BY $132,600; AND
DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That $132,600 from the unreserved fund balance in the No. 1140
Business/Job Development Fund is appropriated for a grant from the Corpus Christi
Business and Job Development Corporation to Commercial Metals Company for
development of a secondary metal processing facility on Bronco Road within the City, in
which CMC will invest at least $20,000,000 in building improvements, furniture, fixtures,
and equipment and will retain at least 39 current full-time jobs and create and maintain
at least 12 new full-time jobs with an average annual salary of at least $31,500 over a
five year period.
SECTION 2. That Ordinance No. 028252, which adopted the FY 2010-2011 Operating
Fund, is changed to increase proposed expenditures in the No. 1140 Business/Job
Development Fund by $132,600 for a grant from the Corpus Christi Business and Job
Development Corporation to Commercial Metals Company for development of a new
secondary metal processing facility on Bronco Road within the City, in which CMC will
invest at least $20,000,000 in building improvements, furniture, fixtures, and equipment
and will retain at least 39 current full-time jobs and create and maintain at least 12•new
full-time jobs with an average annual salary of at least $31,500 over a five year period.
SECTION 3.—That upon written request of the Mayor or five Council members, copy
attached, the City Council (1) finds and declares an emergency due to the need for
immediate action necessary for the efficient and effective administration of City affairs
and (2) suspends the Charter rule that requires consideration of and voting upon
ordinances at two regular meetings so that this ordinance is passed and takes effect
upon first reading as an emergency measure on this the day of
, 2011.
CMC Type A appropord 06242011.docx
—258—
Page 2 of 3
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
APPROVED: , 2011
R. Wining
rst Assistant ity Attorney
For City Attorney
CMC Type A appropord 06242011.docx
—259
Joe Adame
Mayor
Page 3 of 3
Corpus Christi, Texas
day of , 2011
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,
Joe Adame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
CMC Type A appropord 06242011.docx
—260—
Page 1 of 3
RESOLUTION
APPROVING A BUSINESS INCENTIVE AGREEMENT FOR THE
CREATION AND RETENTION OF JOBS BETWEEN THE CORPUS
CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND
COMMERCIAL METALS COMPANY ("CMC"), WHICH PROVIDES A
GRANT OF UP TO $132,600, FOR DEVELOPMENT OF A NEW
SECONDARY METAL PROCESSING FACILITY ON BRONCO ROAD
WITHIN THE CITY OF CORPUS CHRISTI, IN WHICH CMC WILL
INVEST AT LEAST $20,000,000 IN BUILDING IMPROVEMENTS,
FURNITURE, FIXTURES, AND EQUIPMENT AND WILL RETAIN AT
LEAST 39 CURRENT FULL-TIME JOBS AND CREATE AND MAINTAIN
AT LEAST 12 NEW FULL-TIME JOBS WITH AN AVERAGE ANNUAL
SALARY OF AT LEAST $31,500 OVER A FIVE YEAR PERIOD AND
AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE A
BUSINESS INCENTIVE PROJECT SUPPORT AGREEMENT WITH THE
CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION REGARDING IMPLEMENTATION AND
ADMINISTRATION OF THE CMC, BUSINESS INCENTIVE
AGREEMENT FOR THE CREATION AND RETENTION OF JOBS
WHEREAS, the Corpus Christi Business and Job Development Corporation ("Type A
Corporation") has budgeted funds to assist businesses create or retain jobs in the City
of Corpus Christi, Texas ("City").
WHEREAS, the Type A Corporation has requested proposals from businesses that will
create or retain jobs within the City, and determined that the proposal from CMC, to
develop a new secondary metal processing facility on Bronco Road within the City, in
which CMC will invest at least $20,000,000 in building improvements, furniture, fixtures,
and equipment and will retain at least 39 current full-time jobs and create and maintain
at least 12 new full-time jobs with an average annual salary of at least $31,500 over a
five year period, will best satisfy this goal;
WHEREAS, City Council deems that it is the best interest of the City and citizens to
approve the business incentive agreement for the creation and retention of jobs
between the Type A Corporation and CMC; and
WHEREAS, there is a need for a business incentive project support agreement
between the City and the Type A Corporation for the implementation and administration
of the business incentive agreement for the creation and retention of jobs between the
Type A Corporation and CMC.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the business incentive agreement for the creation and retention of
jobs between the Type A Corporation and CMC that provides for the development a
RESOLUTION — Business Incentive Agreement -- CMC 0624201�.gof_
Page 2 of 3
new secondary metal processing facility on Bronco Road within the City of Corpus
Christi, which is attached to this resolution as Exhibit A, is approved.
SECTION 2. That the City Manager, or designee, is authorized to execute a project
support agreement between the City and Type A Corporation for the implementation
and administration of the business incentive agreement with CMC, which is attached to
this resolution as Exhibit B.
ATTEST:
THE CITY OF CORPUS CHRISTI
Armando Chapa Joe Adame
City Secretary Mayor
APPROVED: May of Jv/`� , 2011.
w
R. Jay'-in'rg
First ' ssi - ant City Attorney
Fo City Attorney
RESOLUTION — Business Incentive Agreement — CMC 06242011.632_
Page 3 of 3
Corpus Christi, Texas
of , 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
RESOLUTION — Business Incentive Agreement — CMC 0624201.61_
BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI
BUSINESS AND JOB DEVELOPMENT CORPORATION AND COMMERCIAL
METALS COMPANY FOR CREATION OF JOBS
This Business Incentive Agreement for ("Agreement") is entered into between the
Corpus Christi Business and Job Development Corporation ("Corporation") and
Commercial Metals Company ("CMC"), a Delaware corporation.
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City")
passed Proposition 2, New and Expanded Business Enterprises, which authorized the
adoption of a sales and use tax for the promotion and development of new and
expanded business enterprises at the rate of one-eighth of one percent to be imposed
for 15 years;
WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corpus Christi Business and Job
Development Corporation Board;
WHEREAS, the Corpus Christi Business and Job Development Corporation exists for
the purposes of encouraging and assisting entities in the creation of jobs for the citizens
of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives, which the City Council incorporated into the City of Corpus Christi Economic
Development Incentive Policies 2009-2011 on November 17, 2009;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Business Incentives on November 9, 2010;
WHEREAS, CMC buys secondary metals, sorts by type and grade, processes the
metals and sells them to manufacturers in Texas and around the world;
WHEREAS, CMC proposes to invest approximately $20 million over a 5 year period at a
new location on Bronco Road;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas that business development funds be provided to CMC, through
this Agreement with CMC, to be used by CMC to open another location in Corpus
Christi, and which will result in creation of up to 12 new full-time permanent jobs and will
retain 39 existing jobs at either its new Bronco Road location, existing Agnes Street
Page 1 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 071a2011.doc99x
EAI I%A
1
location, or at a combination of both locations in the City of Corpus Christi, with an
estimated annual average salary of $35,000.
In consideration of the covenants, promises, and conditions stated in this Agreement,
Corporation and CMC agree as follows:
1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest
date that either party executes this Agreement.
2. Term. The term of this Agreement is for 5 years beginning on the Effective Date.
3. Performance Requirements and Grants. The Performance Requirements and
Grants are listed in Exhibit A, which is attached to and incorporated into this Agreement.
4. Job Creation Qualification.
a. In order to count as a created job under this Agreement, the job must pay
wages as required by Section 501.162, Texas Local Government Code, formerly
Section 38(b) of the Development Corporation Act of 1979, as amended, which is
the median wage of the occupation in the Corpus Christi MSA as determined by
Texas Workforce Commission's Texas Industry Profiles report.
b. A full-time permanent job is one that provides at least 2,080 hours annually.
c. CMC agrees to confirm and document to the Corporation that the minimum
number of jobs created as a result of funding provided by this Agreement is
maintained throughout the term by CMC.
d. CMC agrees to provide Corporation with a sworn certificate by authorized
representative of each business assisted under this Agreement certifying the
number of full-time permanent employees employed by the business
e. CMC shall ensure that the Corporation is allowed reasonable access to
personnel records of the businesses assisted under this Agreement.
5. Buy Local Provision.
a. CMC agrees to use its best efforts to give preference and priority to local
manufacturers, suppliers, contractors, and labor, except where not reasonably
possible to do so without added expense, substantial inconvenience, or sacrifice
in operating efficiency.
b. For the purposes of this section, the term "local" as used to describe
manufacturers, suppliers, contractors, and labor includes firms, businesses, and
persons who reside in or maintain an office within a 50- mile radius of Nueces
County.
Page 2 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.dacx
—265—
6. Warranties. CMC warrants and represents to Corporation the following:
a. CMC is a corporation duly organized, validly existing, and in good standing
under the laws of the State of Delaware, has all corporate power and authority to
carry on its business as presently conducted in Corpus Christi, Texas.
b. CMC has the authority to enter into and perform, and will perform, the terms
of this Agreement to the best of its ability.
c. CMC has timely filed and will timely file all local, State, and Federal tax reports
and returns required by laws to be filed and all applicable taxes, assessments,
fees, and other governmental charges, including applicable ad valorem taxes,
have been timely paid, and will be timely paid , during the term of this
Agreement.
d. CMC has received a copy of the Texas Development Corporation Act, Subtitle
C1, Title 12, Texas Local Government Code, and acknowledges that the funds
granted in this Agreement must be utilized solely for purposes authorized under
State law and by the terms of this Agreement.
e. The parties executing this Agreement on behalf of CMC are duly authorized to
execute this Agreement on behalf of CMC.
7. Compliance with Laws. CMC shall observe and obey all applicable laws,
ordinances, regulations, and rules of the Federal, State, county, and city governments.
8. Non -Discrimination. CMC covenants and agrees that CMC will not discriminate nor
knowingly permit discrimination against any person or group of persons, with regard to
employment and the provision of services at, on, or in the facility, on the grounds of
race, religion, national origin, marital status, sex, age, disability, or in any manner
prohibited by the laws of the United States or the State of Texas.
9. Force Majeure. If the Corporation or CMC are prevented, wholly or in part, from
fulfilling its obligations under this Agreement by reason of any act of God, unavoidable
accident, acts of enemies, fires, floods, governmental restraint or regulation, other
causes of force majeure, or by reason of circumstances beyond its control, then the
obligations of the Corporation or CMC are temporarily suspended during continuation of
the force majeure. If either party's obligation is affected by any of the causes of force
majeure, the party affected shall promptly notify the other party in writing, giving full
particulars of the force majeure as soon as possible after the occurrence of the cause or
causes relied upon.
10. Assignment. CMC may not assign all or any part of its rights, privileges, or duties
under this Agreement without the prior written approval of the Corporation and City,
which shall not be unreasonably withheld. Any attempted assignment without approval
is void, and constitutes a breach of this Agreement.
Page 3 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—266—
11. Indemnity. CMC covenants to fully indemnify, save, and hold
harmless the Corporation, the City, their respective officers,
employees, and agents ("Indemnitees') against all liability, damage,
loss, claims demands, and actions of any kind on account of personal
injuries (including, without limiting the foregoing, workers'
compensation and death claims), or property loss or damage of any
kind, which arise out of or are in any manner connected with, or are
claimed to arise out of or be in any manner connected with CMC
activities conducted under or incidental to this Agreement, including
any injury, loss or damage caused by the sole or contributory
negligence of any or all of the Indemnitees. CMC must, at its own
expense, investigate all those claims and demands, attend to their
settlement or other disposition, defend all actions based on those
claims and demands with counsel satisfactory to Indemnitees, and
pay all charges of attorneys and all other cost and expenses of any
kind arising from the liability, damage, loss, claims, demands, or
actions arising under this Agreement
12. Events of Default. The following events constitute a default of this Agreement:
a. Failure of CMC to timely, fully, and completely comply with any one or more of
the requirements, obligations, duties, terms, conditions, or warranties of this
Agreement, other than the requirement to create a minimum number of new jobs
or maintain a minimum number of jobs in any specific year. However, the
minimum number of new jobs must be created and maintained by the end of the
contract term.
b. The Corporation or City determines that any representation or warranty on
behalf of CMC contained in this Agreement or in any financial statement,
certificate, report, or opinion submitted to the Corporation in connection with this
Agreement was incorrect or misleading in any material respect when made;
c. Any judgment is assessed against CMC or any attachment or other levy
against the property of CMC with respect to a claim remains unpaid,
undischarged, or not dismissed for a period of 120 days.
d. CMC makes an assignment for the benefit of creditors.
e. CMC files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
f. If taxes owed by CMC become delinquent, and CMC fails to timely and
properly follow the legal procedures for protest or contest.
g. CMC changes the general character of business as conducted as of the date
this Agreement is approved by the Corporation.
Page 4 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.doc� 67_
13. Notice of Default. Should the Corporation or City determine that CMC is in default
according to the terms of this Agreement, the Corporation or City shall notify CMC in
writing of the event of default and provide 60 days from the date of the notice ("Cure
Period") for CMC to cure the event of default.
14. Results of Uncured Default. After exhausting good faith attempts to address any
default during the cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of CMC, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period.
a. CMC shall immediately repay all funds paid by Corporation under this
Agreement.
b. CMC shall pay Corporation reasonable attorney fees and costs of court to
collect amounts due to Corporation.
c. The Corporation shall have no further obligations to CMC under this
Agreement.
d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
15. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, constitutes a waiver of any subsequent breach of
the covenant or condition of the Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Agreement, justifies or authorizes the nonobservance on any
other occasion of the covenant or condition or any other covenant or condition of
this Agreement.
c. Any waiver or indulgence of CMC's default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time CMC is in default in any of its
conditions or covenants of this Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Agreement on account of the default.
16. CMC specifically agrees that Corporation shall only be liable to CMC for the actual
amount of the money grants to be conveyed to CMC, and shall not be liable to CMC for
Page 5 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—268—
any actual or consequential damages, direct or indirect, interest, attorney fees, or cost
of court for any act of default by Corporation under the terms of this Agreement.
Payment by Corporation is strictly limited to those funds so allocated, budgeted, and
collected solely during the grant term of this Agreement. Corporation shall use its best
efforts to anticipate economic conditions and to budget accordingly. However, it is
further understood and agreed that, should the actual total sales tax revenue collected
for any one year be less than the total amount of grants to be paid to all contracting
parties with Corporation for that year, then in that event, all contracting parties shall
receive only their pro rata share of the available sales tax revenue for that year, less
Corporation's customary and usual costs and expenses, as compared to each
contracting parties' grant amount for that year, and Corporation shall not be liable to for
any deficiency at that time or at any time in the future. In this event, Corporation will
provide all supporting documentation, as requested. Payments to be made shall also
require a written request from CMC to be accompanied by all necessary supporting
documentation.
17. Notices.
a. Any required written notices shall be sent mailed, certified mail, postage
prepaid, addressed as follows:
CMC:
Commercial Metals Company
Attn.: General Counsel's Office
6565 N MacArthur Blvd
Suite 800
Irving, TX 75039
Corporation:
City of Corpus Christi
Business and Job Development Corporation
Attn.: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and correspondence must be sent the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided above.
Page 6 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—269—
18. Incorporation of other documents. The Corpus Christi Business and Job
Development Corporation Guidelines and Criteria for Granting Business Incentives
("Corporation Guidelines"), as amended, are incorporated into this Agreement.
19. Amendments or Modifications. No amendments or modifications to this Agreement
may be made, nor any provision waived, unless in writing signed by a person duly
authorized to sign agreements on behalf of each party.
20. Relationship of Parties. In performing this Agreement, both the Corporation and
CMC will act in an individual capacity, and not as agents, representatives, employees,
employers, partners, joint -venturers, or associates of one another. The employees or
agents of either party may not be, nor be construed to be, the employees or agents of
the other party for any purpose.
21. Captions. The captions in this Agreement are for convenience only and are not a
part of this Agreement. The captions do not in any way limit or amplify the terms and
provisions of this Agreement.
22. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Agreement or the application of this Agreement to any
person or circumstance is, to any extent, held illegal, invalid, or unenforceable
under present or future law or by a final judgment of a court of competent
jurisdiction, then the remainder of this Agreement, or the application of the term
or provision to persons or circumstances other than those as to which it is held
illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it
is the definite intent of the parties to this Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Agreement be
given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Agreement, then the remainder of this Agreement is not affected by the law, and
in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or
provision, as similar in terms to the illegal, invalid, or unenforceable clause or
provision as may be possible and be legal, valid, and enforceable, will be added
to this Agreement automatically.
23. Venue. Venue for any legal action related to this Agreement is in Nueces County,
Texas.
24. Sole Agreement. This Agreement constitutes the sole agreement between
Corporation and CMC regarding the subject matter herein. Any prior agreements,
promises, negotiations, or representations, verbal or otherwise, not expressly stated in
this Agreement, are of no force and effect.
Page 7 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—270—
25. Survival of terms of agreement and obligations of parties. The terms of this
Agreement and the obligation of the parties relating to Section 14.a and b shall survive
the termination of this Agreement.
Corpus Christi Business & Job Development Corporation
By:
Date:
Attest:
By:
Eloy Salazar
Chairperson
Armando Chapa
Assistant Secretary
Page 8of9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—271—
Commercial Metals Company
By:
Date:
Mary Lindsey
Vice President of Tax
THE STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on , 2011, by
Mary Lindsey, Vice President of Tax, for Commercial Metals Company, a Delaware
corporation, on behalf of the corporation.
Notary Public
, State of Texas
Page 9 of 9
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—272—
EXHIBIT A
PERFORMANCE MEASURES AND CORPORATION GRANTS
1. CMC shall open another metal recycling plant in Corpus Christi.
2. CMC shall invest $20 million in the new construction, equipment, furniture, and
fixtures.
3. CMC shall retain 39 current jobs at either its new Bronco Road location, existing
Agnes Street location, or at a combination of both locations.
4. CMC shall create 12 new jobs.
5. CMC shall create at least 12 new, full-time jobs and retain at least 39 full-time jobs
within the City, with an average annual salary of at least $35,000, during the term of this
Agreement.
6. The Corporation will award a grant for each new job created and retained, including
any additional new jobs over the minimum number of required by subsection c of this
section.
a. The grant will be $2,340 for each job if the average annual salary is $31,500.
b. The grant will be $2,600 for each job if the average annual salary is $35,000
or more, but less than $38,500.
c. If the average annual salary is more than $31,500, but less than $35,000, the
grant will be computed by dividing the average annual salary by 35,000 and
multiplying the result by $2,600. For example, if the average annual salary is
$33,000 the grant would be $2,444 (33,000 + 35,000 X $2,600 = $2,444).
d. The grant will be $2,860 for each job if the average annual salary is $38,500
or more.
e. No grants will be awarded if the average annual salary of the new and
retained jobs is less than $31;500.
f. Grants, not to exceed a cumulative total of $132,600, are available on a per
job created basis.
A-1
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
—273—
8. If CMC does not create the minimum number of new jobs or maintain the number of
jobs for any given year, as defined in the following chart below, the Corporation will not
award any grant to CMC for that calendar year.
Year
Number of Minimum Number Minimum
Targeted of New Jobs Number of
New Jobs Retained Jobs
1 12 12 39
2 0 0 51
3 0 0 51
4 0 0 51
5 0 0 51
9. CMC will invest at least $20 million in new construction, equipment, and furniture,
and fixtures. CMC shall annually report their actual investments within the City of
Corpus Christi, and provide documentation to support the report to the Corpus Christi
Regional Economic Development Corporation.
A-2
CMC BUSINESS INCENTIVE AGREEMENT Final 07142011.docx
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BUSINESS INCENTIVE PROJECT SERVICE AGREEMENT
COMMERCIAL METALS COMPANY
This Business Incentives Project Service Agreement ("Project Service Agreement") is
entered into between the Corpus Christi Business and Job Development Corporation
("Type A Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979), now codified as Subtitle
C1, Title 12, Texas Local Government Code, empowered local communities with the
ability to adopt an optional local sales and use tax as a means of improving the
economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax
for the promotion and development of new and expanded business enterprises at the
rate of one-eighth of one percent to be imposed for 15 years;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 was
subsequently enacted by the City Council and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Type A Corporation's Board of
Directors ("Board");
WHEREAS, the Type A Corporation exists for the purposes of encouraging and
assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas;
WHEREAS, the Board of Directors of the Corporation ("Board"), on September 10,
2007, amended the Corporation's Guidelines and Criteria for Granting Business
Incentives;
WHEREAS, the City Council approved the Corporation's amended Guidelines and
Criteria for Granting Business Incentives on November 9, 2010;
WHEREAS, Section 501.073, Texas Local Government Code (formerly Section 21 of
the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised
Civil Statutes), requires the City Council to approve all programs and expenditures of
the Type A Corporation;
WHEREAS, Commercial Metals Company ("CMC") has submitted a proposal to the
Type A Corporation for to develop a new secondary metal processing facility on Bronco
Road;
WHEREAS, the Board has determined that it is in the best interests of the citizens of
Corpus Christi, Texas, to fund the CMC's Bronco Road facility; and
WHEREAS, the Type A Corporation and CMC have executed a business incentive
project agreement to develop a new secondary metal processing facility on Bronco
Road.
Large Project Support Agreement— CMC 06172011.doc
Page 1 of 3
—27E5xhibit B
In consideration of the covenants, promises, and conditions stated in this Project
Service Agreement, the Type A Corporation and the City agree as follows:
1. Project Service Agreement to Implement Business Incentives Agreement. This
Project Service Agreement between the City and the Type A Corporation is executed to
implement the Bronco Road facility between the Type A Corporation and CMC related
to CMC's Bronco Road facility ("Business Incentive Agreement").
2. Term. The term of this Project Service Agreement runs concurrently with the term of
the Business Incentive Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Type A Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Business Incentive Agreement for
the Type A Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Service Agreement is the latest
date that either party executes this Agreement.
6. Amendments or Modifications. No amendments or modifications to this Project
Service Agreement may be made, nor any provision waived, unless in writing signed by
a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section;paragraph, subdivision, clause, provision,
phrase or word of this Project Service Agreement or the application of this
Project Service Agreement to any person or circumstance is, to any extent, held
illegal, invalid, or unenforceable under present or future law or by a final
judgment of a court of competent jurisdiction, then the remainder of this Project
Service Agreement, or the application of the term or provision to persons or
circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Service Agreement that every section,
paragraph, subdivision, clause, provision, phrase, or word of this Project Service
Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Service Agreement, then the remainder of this Project Service Agreement is not
affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or
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provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause. or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Service Agreement automatically.
8. Captions. The captions in this Project Service Agreement are for convenience only
and are not a part of this Project Service Agreement. The captions do not in any way
limit or amplify the terms and provisions of this Project Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
Ronald L. Olson Eloy Salazar
City Manager President
Date: Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form: , 2011.
R. Jay Reining
First Assistant City Attorney
for City Attorney
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Page 3 of 3
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RESOLUTION
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH
COMMERCIAL METALS COMPANY PROVIDING FOR TEMPORARY
PROPERTY TAX ABATEMENT
WHEREAS, the Texas Property Redevelopment and Tax Abatement Act (the "Act'),
Texas Tax Code, Chapter 312, as amended, authorizes the City of City of Corpus
Christi, Texas (the "City") to enter into tax abatement agreements for projects meeting
the guidelines and criteria for granting tax abatement duly adopted by the City; and
WHEREAS, an application for temporary tax abatement has been filed with the City by
Commercial Metals Company for the construction of improvements to facilities in the
City; and
WHEREAS, the property to be covered by the proposed tax abatement agreement is
located in the city limits of the City of Corpus Christi within an area designated as a
reinvestment zone eligible for property tax abatement under the provisions of the Act;
and
WHEREAS, the project is not located on property that is owned or leased by a person
who is a member of the city council;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. The City Council finds and determines that the terms of the proposed
agreement with Commercial Metals Company providing for temporary property tax
abatement and the property subject to the proposed agreement meet the applicable
guidelines and criteria, as amended, adopted by the City. The City Council further
determines that the proposed project is feasible and the proposed temporary abatement
of taxes will inure to the long term benefit of the City.
SECTION 2. The Tax Abatement Agreement with Commercial Metals Company
attached in substantial form as Exhibit A, is approved, and the City Manager is
authorized to execute the agreement.
Adopted at a regular meeting of the City Council on the day of
2011.
ATTEST: THE CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
Tax Abatement Resolution — CMC 06172011.doc
Joe Adame
Mayor
—278—
APPROVED: /1 day of ✓/y 2011.
R. J- 'ei' ng
FiF t As stant Cit ttorney
For City Attorne
Tax Abatement Resolution — CMC 06172011.doc
-279-
2
2
Corpus Christi, Texas
of , 2011
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
Tax Abatement Resolution — CMC 06172011.doc
—280-
3
3
TAX ABATEMENT AGREEMENT
THE STATE OF TEXAS }
}
COUNTY OF NUECES }
This Tax Abatement Agreement ("Agreement") is made and entered into by and
between the City of Corpus Christi, Texas ("City") and Commercial Metals Company, a
Delaware corporation ("Owner"), the owner of taxable property in the City of Corpus
Christi, Texas, located on Bronco Road, Corpus Christi, Nueces County, Texas
("Property").
I. AUTHORIZATION
This Agreement is authorized by the Texas Property Redevelopment and Tax
Abatement Act, Texas Tax Code, Chapter 312, as amended ("Act"), and is subject to
the laws of the State of Texas and the charter, ordinances, and orders of the City.
II. DEFINITIONS
A. As used in this Agreement, the following terms have the following meanings:
1. "Abatement" means the temporary or partial exemption from ad valorem taxes
of certain added value to real and personal property in a zone designated for
economic development purposes under the Act
2. "Added Value" means the increase in the assessed value of the Eligible
Property as a result of "expansion" or "modernization" of an existing facility or
construction of a "new facility." It does not mean or include "deferred
maintenance."
3. "Base Year Value" means the assessed value of the Improvements on the
Property as certified by the Nueces County Appraisal District as of the January 1
preceding the execution of this Agreement, plus the agreed upon value of
Improvements made after January 1, but before the execution of this Agreement.
4. "Construction Phase" means the period during which a material and
substantial improvement of the Property occurs which represents a separate and
distinct construction operation undertaken for the purpose of erecting the
Improvements.
(a) The Construction Phase ends upon the earliest to occur of the
following events:
(1) When a certificate of occupancy is issued for the project (if
within City limits).
CMC Tax Abatement Agreement 07142011.docx
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ExhibitA 1 _
(2) When commercial production of a product or provision of a
service is achieved at the facility.
(3) When the architect or engineer supervising construction issues
a certificate of substantial completion, or some similar instrument.
(4) Two (2) years after the date of this Agreement.
(b) The determination of the end of the Construction Phase is made by the
City, in its sole and absolute discretion, based upon the above criteria and
the other factors as the City may deem relevant.
(c) The determination of the end of the Construction Phase by the City is
conclusive, and any judicial review of the determination is governed by the
substantial evidence rule.
5. "Eligible Property" means the buildings, structures, site improvements, and
that office space and certain personal property necessary to the operation and
administration of the Facility to be constructed under this Agreement. A list of the
Eligible Property is set forth in the Project Description, which is attached to this
Agreement as Exhibit A and made a part of this Agreement. During the
Construction Phase of the Eligible Property, the Owner may make the change
orders to the Eligible Property as are reasonably necessary to accomplish its
intended use, provided that no change order may be made which will change the
qualification of the project as a "Facility" under the Guidelines and Criteria for
Granting Tax Abatement approved by the City.
6. "Facility" means a Basic Manufacturing or Service Facility, Regional
Distribution Center Facility, Regional Telecommunications/Data Processing
Center Facility, Regional Visitor Amusement Facility, Central Business District
(CBD) Residential Facility, Renewal Community Facility, or Petrochemical
Facility approved by the City as set forth in the Guidelines and Criteria for
Granting Tax Abatement adopted by the City.
7. "Improvements" means the buildings, portions of buildings, and other
improvements, including fixed machinery and equipment, used for commercial or
industrial purposes on the Property.
8. "Ineligible Property" means land; inventories; supplies; tools; furnishings and
other forms of movable personal property; vehicles; vessels; aircraft; housing;
hotel accommodations; deferred maintenance investments; property to be rented
or leased, except as provided in Section 2(e); any improvements, including those
to produce, store or distribute natural gas, fluids or gases, which are not integral
to the operation of the Facility; improvements to real property which have an
economic life of less than 15 years; property owned or used by the State of
Texas or its political subdivisions or by any organization owned, operated, or
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directed by a political subdivision of the State of Texas; unless any of the above
types of property are specifically authorized by the City.
B. The Guidelines and Criteria for Granting Tax Abatement adopted by the City are
incorporated as a part of this Agreement. Except as the guidelines and criteria are
specifically modified by this Agreement, all definitions in the guidelines and criteria are
applicable to this Agreement.
III. PROPERTY
A. The Property is an area within the City of Corpus Christi, Texas, located in whole or
in part within the jurisdiction of the City, and is more fully described in Exhibit B, which is
attached to this Agreement and made a part of this Agreement. The Property is located
within a zone for tax abatement established under Chapter 312 of the Texas Tax Code,
as amended, by the City of Corpus Christi, Texas.
B. The Nueces County Appraisal District has established the following values for the
Property as of the January 1 valuation date prior to the date of execution of this
Agreement.
Account No. 7946-0004-0100 (R301958)
Land $63,785
C. The City and the Owner agree that the value of any additions to the Improvements
made after January 1 or not otherwise reflected on the above valuation of
Improvements is:
Additional Improvements: $0.00
D. Addition of the above amount to the valuation of the Improvements as of the
January 1 valuation date prior to the date of execution of this Agreement results in a
Base Year Value as follows:
Base Year Value: $63,785
IV. TERM OF ABATEMENT AND AGREEMENT
A. The City agrees to abate the ad valorem taxes on the Eligible Property under this
Article and Articles V and VI of this Agreement. The Abatement is effective with the
January 1 valuation date immediately following the date of execution of this Agreement.
The Abatement continues for up to two (2) years during the period of the Construction
Phase and for the next six (6) full tax years after the Construction Phase, expiring as of
December 31 of the 2019 tax year. If the period of the Construction Phase exceeds two
(2) years, the Facility is considered completed for purposes of Abatement, and in no
case may the period of Abatement, inclusive of construction and completion exceed
eight (8) tax years. The years of Abatement provided in this Agreement in each
instance coincide with the tax year commencing on January 1 and expiring on
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December 31, and in no event may the Abatement extend beyond December 31 of the
2019 tax year. This Abatement also covers as Eligible Property those supplemental
improvements to the Eligible Property that are added or constructed during the post -
construction two (2) year period of Abatement. In no event, however, may the total
Abatement period for the Eligible Property exceed the maximum six (6) year Abatement
period for the entire project as specified in this Agreement.
B. The term of this Agreement continues for a period of five (5) years following
expiration of the abatement period. All terms and conditions imposed upon the Owner
continue in effect during the period, and the Owner is obligated specifically to continue
the minimum employment levels specified in this Agreement. Any default is subject to
the provisions of Article VIII of this Agreement.
V. TAXABILITY
During the period that the Abatement is effective, taxes are payable as follows:
1. The value of the land comprising the Property is fully taxable.
2. The Base Year Value of existing Improvements comprising the Property is
fully taxable.
3. The value of Ineligible Property is fully taxable.
4. The Added Value of Eligible Property is abated under Article VI of this
Agreement.
VI. AMOUNT OF ABATEMENT
A. The Abatement provided by this Agreement is based upon a Manufacturing Facility
located in the Renewal Community, Owner represents and warrants that this project will
add twelve (12) additional and retain thirty-nine (39) permanent, full-time operating, or
contract employee at either its new Bronco Road facility, its existing facility on Agnes
Street, or split between the two facilities, and will maintain the same level of
employment for the term of the abatement agreement, the percentage of tax abated is
under the following schedule:
Percentage of Abatement
Construction Period
(not to exceed 2 years)
100%
Year I
100%
Year 2
100%
Year 3
100%
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Year 4
75%
Year 5
50%
Year6
25%
B. In order to be counted as a permanent job under this Agreement, the job must be a
full-time position providing regular work schedules at least 35 hours per week. For
compliance purposes, the determination date is January 1 of each year commencing
with the January 1 following the date of completion of construction. The percentage of
abatement provided each year under this Agreement is based upon the employment
information as of January 1 of the year. As a result, the actual amount of abatement
may vary from year to year based upon employment levels and property valuations.
C. At the time of execution of this Agreement, the Owner reasonably estimates and
represents to the City that the Added Value comprising permanent Improvements upon
completion of the Construction Phase is:
$20,000,000.00 ("Estimated Added Value"), of which $20,000,000.00 is eligible
for tax abatement.
D. In the event that upon completion of the Construction Phase, the Added Value of
permanent Improvements, as determined by the Appraisal District, is at any time during
the period of Abatement less than eight -five percent (85%) of the Estimated Added
Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay,
as additional taxes under this Agreement, an amount equal to the then current tax rate
of the City applied to the difference between the Added Value from eighty-five percent
(85%) of the Estimated Added Value, multiplied by 100%, minus the net percentage of
Abatement provided under this Agreement. For the purposes of this provision, the term
"circumstances beyond the control of Owner" includes casualty losses, national
economic factors, shutdowns due to governmental regulations, strikes, acts of war; and
the like.
IE. The formula for calculating the additional tax is outlined as follows:
(Tax Rate] x [(85% of Est. Added Value - Actual AV) x (100% - Abatement %)] =
Additional Tax.
VII. CONTEMPLATED IMPROVEMENTS
A. The contemplated improvements are set forth in the Project Description attached as
Exhibit "A." During the Construction Phase, the Owner may make the change orders to
the project that are reasonably necessary, provided that no change order may be made
that will change the qualification of the project as a "Facility" under the Guidelines and
Criteria for Granting Tax Abatement approved by the City. All improvements must be
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completed under all applicable laws, ordinances, rules or regulations. During the term
of this Agreement, use of the Property is limited to operation of the Facility described in
the Project Description consistent with the general purpose of encouraging development
or redevelopment of the zone during the period of this Agreement.
B. Owner represents and warrants that this project will add twelve (12) additional and
retain thirty-nine (39) permanent or full-time operating or contract employee and will
maintain the same level of employment for the term of the abatement agreement. Also,
Owner represents and warrants the project is not expected to solely or primarily have
the effect of transferring employment from one part of Nueces County to another.
VIII. EVENTS OF DEFAULT AND RECAPTURE
A. Failure to Commence Operation During Term of Agreement. In the event that the
Facility is not completed and does not begin operation with the minimum number of fifty
one (51) permanent jobs by the January 1 following the completion of construction, no
abatement is given for that tax year, and the full amount of taxes assessed against the
property is due and payable for that tax year. In the event that the Owner fails to begin
operation with the minimum number of fifty one (51) permanent jobs by the next
January 1, then this Abatement Agreement terminates and all abated taxes during the
period of construction are recaptured and must be paid within 60 days of the
termination.
B. Discontinuance of Operations During Tenn of Abatement. In the event the Facility is
completed and begins operation with the required minimum number of permanent jobs,
but subsequently discontinues operations or the minimum number of permanent jobs is
not maintained on any January 1 during the term of the Agreement after the completion
of construction, for any reason except on a temporary basis due to fire, explosion, or
other casualty, accident, or natural disaster, the Agreement may be terminated by the
City, and all taxes previously abated by virtue of this Agreement are recaptured and
must paid within 60 days of the termination.
C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to
become delinquent or fails to timely and properly follow the legal procedures for their
protest or contest, this Agreement terminates and the abatement of the taxes for the
calendar year of the delinquency also terminates. The total taxes assessed without
abatement for that calendar year must be paid within sixty (60) days from the date of
termination. Penalty and interest do not begin to accrue on the additional amount of
taxes due as the result of recapture under this provision until the first day of the month
following the sixty (60) day notice, at which time penalty and interest accrues under the
laws of the State of Texas. Penalty and interest on the amount of taxes originally levied
based upon the Abatement begin to accrue as of the date the taxes were due under the
laws of the State of Texas.
D. Notice of Default. Should the City determine that the Owner is in default under the
terms and conditions of this Agreement, City must notify the Owner that if the default is
not cured within sixty (60) days from the date of the notice ("Cure Period"), then this
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Agreement may be terminated. In the event the Owner fails to cure the default during
the Cure Period, this Agreement may be terminated and the taxes abated by virtue of
the Agreement will be recaptured and must be paid as provided in this Agreement.
E. Actual Added Value. Should the Nueces County Appraisal District determine that
the total level of Added Value during any year of the term of this Agreement after
completion of the Construction Phase is lower than the Estimated Added Value then a
lower percentage of Abatement is applicable. For each year during which an
Abatement has been granted, the difference between the tax abated and the tax that
should have been abated based upon the actual Added Value as determined by the City
and must paid within 60 days of notification to the Owner of the determination. Penalty
and interest does not begin to accrue upon the sum until the first day of the month
following the sixty (60) day notice, at which time penalty and interest accrues under the
laws of the State of Texas.
F. Reduction in Rollback Tax Rate.
1. If during any year of the period of Abatement any portion of the abated value
is added to the current total value of the City, but is not treated as "new property
value" (as defined in Section 26.012 (17) of the Texas Tax Code) for the purpose
of establishing the "effective maintenance rate" in calculating the "rollback tax
rate" under Section 26.04 (c) (2) of the Texas Tax Code and if the City's budget
calculations indicate that a tax rate in excess of the "rollback tax rate" is required
to fund the operations of the City for the succeeding year, then the City
recaptures from the Owner a tax in an amount equal to the lesser of the
following:
(a) The amount of the taxes abated for that year by the City with respect to
the Property.
(b) The amount obtained by subtracting the rollback tax rate computed
without the abated property value being treated as new property value
from the rollback tax rate computed with the abated property value being
treated as new property value and multiplying the difference by the total
assessed value of the City.
2. If the City has granted an abatement of taxes to more than one taxpayer, then
the amount of the recapture calculated under subparagraph (b) above is prorated
on the basis of the value of the abatement with respect to each taxpayer.
3. This event does not constitute a "default" under this Agreement, and the sixty
(60) day Cure Period provided above does not apply. The recaptured taxes must
be paid within thirty (30) days after notice of the rollback in tax rate has been
given to the Owner. Penalty and interest do not begin to accrue upon the sum
until the first day of the month following the thirty (30) day notice, at which time
penalty and interest accrue under the laws of the State of Texas.
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G. Continuation of Tax Lien.
1. The amount of tax abated each year under the terms of this Agreement is
secured by a first and prior tax lien, which continue in existence from year to year
until the time as this Agreement between the City and Owner is fully performed
by Owner, or until all taxes, whether assessed or recaptured, are paid in full.
H. City Council Reserves Right to Terminate of Modify Agreement. In the event of any
default by Owner, the City Council reserves the right to terminate or modify this
Agreement.
I. Owner's right to appeal.
1. Owner must be afforded written notice of the default and the opportunity to
cure as provided above.
2. If Owner believes the action was improper, Owner may file an appeal in
Nueces County district court within sixty (60) days after written notice of the
action by the City.
3. Owner shall remit to the City, within the 60 -day period, any additional or
recaptured taxes levied under the payment provisions of Texas Tax Code §
42.08.
4. If the final determination of the appeal increases Owner's tax liability above
the amount paid, Owner shall remit the additional tax under Tax Code § 42.42.
5. If the final determination of the appeal decreases Owner's tax liability, the City
will refund the Owner the difference between the amount of tax paid and the
amount of tax for which Owner is liable under Tax Code § 42.43.
IX. ADMINISTRATION
A. Inspections. The Owner shall allow employees and/or representatives of the City to
have access to the Property during the term of this Agreement to inspect the Facility to
determine compliance with the terms and conditions of this Agreement. All inspections
will be made only after the giving of twenty-four (24) hours prior notice, and conducted
in the manner as to not unreasonably interfere with the construction or operation of the
Facility. All inspections must be made with one or more representatives of the Owner
and under Owner's safety standards.
B. Appraisals.
1. The Chief Appraiser of the Nueces County Appraisal District annually
determines:
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(a) The taxable value of the real and personal property comprising the
Property taking into consideration the. Abatement provided by this
Agreement.
(b) The full taxable value without Abatement of the real and personal
property comprising the Property.
2. The Chief Appraiser records both the abated taxable value and the full taxable
value in the appraisal records.
3. The full taxable value figure listed in the appraisal records is used to compute
the amount of abated taxes that are required to be recaptured and paid in the
event this Agreement is terminated in a manner that results in recapture.
4. Each year the Owner shall furnish the Chief Appraiser with the information
outlined in Chapter 22, Texas Tax Code, as amended, as may be necessary for
the administration of the Agreement specified in this Agreement.
C. Annual Reports.
1. Owner shall certify to the governing body of the City on or before April 1 each
year that the Owner is in compliance with each applicable term of this
Agreement.
2. Additionally, during the initial four years of the term of property tax abatement,
Owner shall provide to the City an annual report covering those items listed on
Schedule I attached to this Agreement in order to document the efforts of the
Owner to acquire goods and services on a local basis.
3. The annual report is prepared on a calendar year basis and is submitted to
the City no later than ninety (90) days following the end of each the calendar
year.
4. The annual report is accompanied by an audit letter prepared by an
independent accounting firm which has reviewed the report.
5. The copies of the four prior quarterly IRS 941 returns must be provided to
verify employment
D. "Buy Local" Provision.
1. The Owner shall give preference and priority to local manufacturers,
suppliers, contractors, and labor, except where not reasonably possible to do so
without added expense, substantial inconvenience, or sacrifice in operating
efficiency.
2. In the case of an exception involving a purchase over $10,000.00, the
justification for the purchase must be included in the annual report.
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3. The Owner further acknowledges that it is a legal and moral obligation of
persons receiving property tax abatements to favor local manufacturers,
suppliers, contractors, and labor, all other factors being equal.
4. For the purposes of this provision, the term 'local" as used to describe
manufacturers, suppliers, contractors, and labor includes firms, businesses, and
persons who reside in or maintain an office in either Nueces County or San
Patricio County.
5. In the event of a breach of the buy local provision, the percentage of
abatement is proportionately reduced to the amount the disqualified contract
bears to the total construction cost for the project.
X. ASSIGNMENT
A. The Owner may assign this Agreement to any one or more corporation(s), 50% or
more of the outstanding voting securities of which are owned, directly or indirectly, by
one of the Owners, or any partnership(s) or limited partnership(s) in which an Owner, or
a subsidiary of an Owner, is a general partner.
B. The Owner may assign this Agreement to any other new owner or lessee of the
Facility with the prior written consent of the City, which consent may not be
unreasonably withheld.
C. Any assignment must provide that the assignee shall irrevocably and unconditionally
assume all the duties and obligations of the assignor and become the Owner upon the
same terms and conditions as set out in this Agreement.
D. In the event more than one entity is Owner under this Agreement, the obligations of
the entities is joint and several.
E. Any assignment of this Agreement is to an entity that must provide substantially the
same improvements to the Property, except to the extent the improvements have been
completed.
F. No assignment is approved if the Owner or any assignee is indebted to the City for
ad valorem taxes or other obligations.
Xl. NOTICES
A. Any notice required to be given under the provisions of this Agreement must be in
writing and is duly served when deposited, with the proper postage prepaid, and
registered or certified, return receipt requested, with the United States Postal Service,
addressed to the City or Owner at the addresses listed below.
B. If mailed, any notice or communication is deemed to be received three days after the
date of deposit in the United States Mail. Unless otherwise provided in this Agreement,
all notices are delivered to the following addresses:
Page 10 of 16
CMC Tax Abatement Agreement 07142011.docx
—290—
To the City: CITY OF CORPUS CHRISTI
1201 Leopard Street
P. O. Box 9277
Corpus Christi, Texas 78469
Attn: City Manager
To the Owner: Commercial Metals Company
6565 N MacArthur Blvd
Suite 800
Irving, TX 75039
C. Either party may designate a different address by giving the other party ten days
written notice.
This Agreement has been executed by the parties in multiple originals or counterparts,
each having full force and effect.
Executed this day of , 2011.
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
By: By:
Armando Chapa
City Secretary
APPROVED AS TO FORM:
By:
R. Jay Reining
First Assistant City Attorney
For City Attorney
Ronald L. Olson
City Manager
OWNER: COMMERCIAL METALS COMPANY
By:
Mary Lindsey
Vice President of Tax
Commercial Metals Company
CMC Tax Abatement Agreement 07142011.docx
Page 11 of 16
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STATE OF TEXAS
COUNTY OF
§
ACKNOWLEDGMENT
KNOW ALL BY THESE PRESENTS
This instrument was acknowledged before me on , 2011,
by Mary Lindsey, Vice President of Tax, Commercial Metals Company, a Delaware
domestic for profit corporation, on behalf of the corporation.
CMC Tax Abatement Agreement 07142011.docx
NOTARY PUBLIC, State of Texas
Page 12 of 16
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SCHEDULE 1
"Buy Local" Annual Reports ..
The following information is reported to the City on a calendar -year basis during the first
four years of the tax abatement program:
1. Dollar amount spent for materials* (local).
2. Dollar amount spent for materials (total).
3. Dollar amount spent for labor** (local).
4. Dollar amount spent for labor** (total).
5. Number of jobs created in the construction project (local).
6. Number of jobs created in the construction project (total).
7. Number of jobs created on a permanent basis (local).
8. Number of jobs created on a permanent basis (total).
* "Materials" are defined to include all materials used in excavation, site improvement,
demolition, concrete, structural steel, fire proofing, piping, electrical, instruments,
paintings and scaffolding, insulation, temporary construction facilities, supplies,
equipment rental in construction, small tools and consumables. This term does not
include major items of machinery and equipment not readily -available locally.
** "Labor" is defined to include all labor in connection with the excavation, site
improvement, demolition, concrete construction, structural steel, fire proofing,
equipment placement, piping, electrical, instruments, painting and scaffolding,
insulation, construction services, craft benefits, payroll burdens, and related labor
expenses. This term does not include engineering services in connection with the
project design.
The term 'local" as used to describe manufacturers, suppliers, contractors and labor
shall include firms, businesses, and persons who reside in or maintain an office in either
Nueces County or San Patricio County.
CMC Tax Abatement Agreement 07142011.docx
Page 13 of 16
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EXHIBIT A
PROJECT PLAN
Commercial Metals Company (CMC) plans to construct a recycling facility on their
property located on Bronco Road. CMC plans to invest approximately $20 million in
equipment. The facility will sort and grade the incoming metals then process it for sale
to manufacturers in Texas and around the world.
CMC Tax Abatement Agreement 07142011.docx
Page 14 of 16
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EXHIBIT B
DESCRIPTION OF THE PROPERTY
The property includes each of the following two tracts of land, identified as "Tract No. 1"
and "Track No. 3";
Tract No. 1
Being a tract situated in Corpus Christi, Nueces County, Texas a portion of Lot 9, H.B.
Sheppard Farm Lots, as shown on the map thereof recorded in Volume "A", at Page 51
of the Map Records of Nueces County, Texas, being also a portion of that 131.6 acre
tract described in the trustees deed dated August 26, 1998, recorded under Clerk's File
No. 1998039480, Official Public Records of Nueces County, Texas, and being as
follows:
BEGINNING at a 5/8 inch iron rod set for the southeast corner of Lot 9, the
northeast corner of Lot 4, said point lying in the west right-of-way line of Bronco
Road.;
THENCE S 89°12'32" W along the south line of Lot 9, a distance of 1282.01 feet
to a 5/8 inch iron rod set for the southwest corner of Lot 9 and the northwest
corner of Lot 4, H.B. Sheppard Farm Lots;
THENCE N 0°43'49" W a distance of 642.02 feet to a 5/8 inch iron rod found for
the northwest corner of this tract;
THENCE N 8914'46" E across Lot 9, a distance of 1282.06 feet to a 5/8 inch
iron rod found for the northeast corner of this tract, said point lying in the west
right-of-way line of Bronco Road;
THENCE S 0°43'35" E along the west right-of-way of bronco Road a distance of
641.19 feet to the POINT OF BEGINNING forming a tract embracing 18.883
acres.
Tract No. 3
Being a tract situated in Corpus Christi, Nueces County, Texas a portion of the G.C. &
S.F. Railroad Company Survey No. 315, and being also a portion of that 131.6 acre
tract described in the trustees deed dated August 26, 1998, recorded under Clerk's File
No. 1998039480, Official Public Records of Nueces County, Texas and being more
particularly described by metes and bounds as follows:
BEGINNING at a 5/8 inch iron rod set in the west right-of-way line of Bronco
Road, for the southeast corner of Lot 4, H.B. Sheppard Farm Lots, as shown on
the map thereof recorded in Volume "A", at Page 51 of the Map Records of
Nueces County, Texas, said point Tying in the north line of the C.G. & S.F.
Railroad Company Survey No. 315 for the northwest corner of the tract;
Page 15 of 16
CMC Tax Abatement Agreement 07142011.docx
—295—
THENCE S 0°43'35" E along the west right-of-way line of Bronco Road, a
distance of 188.82 feet to a 5/8 inch iron rod set in the north right-of-way line of
the Texas -Mexico Railroad right-of-way for the southeast corner of the tract;
THENCE S 88°35'30" E along the west right-of-way line of the Texas -Mexico
Railroad right-of-way, a distance of 1281.98 feet to a 5/8 inch iron rod set for the
southwest corner of this tract;
THENCE N 0°44'06" W a distance of 210.35 feet to a 5/8 inch iron rod set for the
northwest corner of this tract, said point being the southwest corner of Lot 4, H.B
Sheppard Farm Lots;
Thence N 89°33'13" E along the south line of Lot 4 and the north line of Survey
No. 315, a distance of 1281.94 feet to the POINT OF BEGINNING forming a tract
embracing 5.874 acres.
CMC Tax Abatement Agreement 07142011.docx
Page 16 of 16
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17
NO ATTACHMENT FOR THIS ITEM
-299-
18
Corpus
AGENDA MEMORANDUM
for the City Council Meeting of July 26, 2011
DATE: July 21,2011
TO: Ronald L. Olson, City Manager
FROM: Rudy D. Garza, Interim Asst. City Manager
rudyga@cctexas.com
361-826-3082
PRESENTATION — : Presentation to Council regarding an upcoming Corpus Christi
Town Hall Meeting scheduled for Tuesday, August 2"d, 2011 from 5:30 — 7 p.m. at the
Del Mar Center for Economic Development to provide a community update on the
continued development of the Interstate 69 corridor in Texas.
STAFF PRESENTER(S):
Name
1. Rudy D. Garza
Title/Position Department
Interim Asst. City Manager Business Support Services
BACKGROUND:
This brief conversation with Council is being scheduled at the request of Councilwoman
Nelda Martinez, who is a Board Member for the Alliance for 1-69. Texas Dept. of Transportation
is in the midst of a segment review process that will ultimately determine the prioritizing of
projects along the 1-69 route. As part of that segment review process, communities are being
asked to educate their constituents regarding the current status of 1-69. This town hall meeting
is scheduled for that purpose.
LIST OF SUPPORTING DOCUMENTS: Please see the attached Town Hall Meeting Flyer.
Cc: Eddie Houlihan, Assistant Director of Management and Budget
—303—
The Alliance for I69Texas & members of
the I69 Segment Committee want YOU
to be a partner in the development of
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PLEASE JOIN US FOR A
AUGUST 2, 2011
5:30 PM TO 7:00 PM
3209 S. STAPLES ST.
DEL MAR CENTER FOR
ECONOMIC DEVELOPMENT
THE FUTURE SUCCESS OF OUR GREAT STATE DEPENDS ON KEEPING OUR
TRANSPORTATION SYSTEM ADVANCING TO MEET INCREASED TRAFFIC. THE CITIZENS
OF CORPUS CHRISTI HAVE THE OPPORTUNITY TO DIRECT THE DEVELOPMENT OF
I-69 TEXAS INTO A MODERN TRANSPORTATION SYSTEM CARRYING GOODS TO MAR-
KET AND FAMILIES TO THEIR DESTINATIONS.
JOIN COUNCILWOMAN NELDA MARTINEZ, NUECES COUNTY JUDGE LOYD NEAL,
SAN PATRICIO COUNTY JUDGE TERRY SIMPSON, JOHN CASEY FROM TxDOT,
TOM NISKALA FROM MPO & INTERIM ASSISTANT CITY MANAGER RUDY GARZA
TO DISCUSS OUR COMMUNITY'S NEEDS 86 DEVELOPMENT OPPORTUNITIES.
Visit. T DOT.COMIDRIVENB'YTEXANS for more information.