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HomeMy WebLinkAboutAgenda Packet City Council - 10/14/2014Corpus Christi 4:tI� Meeting Agenda - Final City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, October 14, 2014 11:30 AM Council Chambers Public Notice - - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Members of the audience will be provided an opportunity to address the Council at approximately 12:00 p.m., or the end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state your name and address. Your presentation will be limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Si Usted desea dirigirse al Concilio y cree que su ingles es limitado, habra un interprete ingles-espanol en todas las juntas del Concilio para ayudarle. Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (at 361-826-3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Nelda Martinez to call the meeting to order. B. Invocation to be given by Rabbi Ilan Emanuel, Congregation Beth Israel. C. Pledge of Allegiance to the Flag of the United States to be led by Kristina Leal, Mayor's Chief of Staff. D. City Secretary Rebecca Huerta to call the roll of the required Charter Officers. E. Proclamations / Commendations 1. 14-001137 Proclamation declaring October 9-15, 2014 as, "Wildlife In Focus - Wondrous Wildlife Week" Proclamation declaring October 13-17, 2014 as, "Court Observance Week" Proclamation declaring October 25, 2014 as, "Drug Free Youth Day" Proclamation declaring October 27-31, 2014 as, "Red Ribbon Week" Certificate of Commendation - Susan Shelby Torrance, Member of the Class of 2014 Texas Sports Hall of Fame Swearing-in Ceremony for Municipal Court Judge Ray Gonzalez Swearing-in Ceremony for Newly Appointed Board, Commission and Committee Members Corpus Christi Page 1 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 F. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. PLEASE LIMIT PRESENTATIONS TO THREE MINUTES. 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. PER CITY COUNCIL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL BERATE, EMBARRASS, ACCUSE, OR SHOW ANY PERSONAL DISRESPECT FOR ANY MEMBER OF THE STAFF, COUNCIL MEMBERS, OR THE PUBLIC AT ANY COUNCIL MEETING. THIS POLICY IS NOT MEANT TO RESTRAIN A CITIZEN'S FIRST AMENDMENT RIGHTS. G. CITY MANAGER'S COMMENTS / UPDATE ON CITY OPERATIONS: a. Other H. EXECUTIVE SESSION: (ITEM 2 - 3) 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 officer. 2. 14-001136 Executive session pursuant to Section 551.071 of the Texas Government Code for consultation with attorneys regarding fire collective bargaining negotiations with possible discussion and action in open session. 3. 14-001150 Executive Session pursuant to Section 551.071 of theTexas Government Code and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys on annexation, with possible action and discussion in open session. I. MINUTES: 4. 14-001138 Regular Meeting of September 30, 2014 Corpus Christi Page 2 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 Attachments: Minutes - September 30, 3014 J. BOARD & COMMITTEE APPOINTMENTS: (NONE) K. 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. L. CONSENT AGENDA: (ITEMS 5 - 9) NOTICE TO THE PUBLIC: The following items are consent motions, resolutions, and ordinances 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. 5. 14-00978 Supply agreement for lease of computers, servers and other computer peripherals and related products (Requires 2/3 vote) Motion approving a supply agreement with CSI Leasing, Inc., Saint Louis, Missouri for lease of approximately 300 desktop computers, 200 laptop computers, 20 servers, and other computer peripherals and related products in accordance with the State of Texas cooperative purchasing program and the City's Master Lease Agreement No. 1880CCC for an estimated expenditure of $1,398,138.27, of which $30,503.23 is required for the remainder of FY 2013-2014. The term of the contract will be for twelve months with an option to extend for up to three additional twelve month periods subject to the approval of the supplier and the City Manager or designee. Attachments: Price Sheet - Lease of Computers Agenda Memo - Lease of Computers 6. 14-00921 Engineering construction contract for the Schanen Ditch Improvements Phase 2 Project (Requires 2/3 vote) Motion authorizing the City Manager, or designee, to execute a construction contract with Saenz Brothers Construction, LLC, in the amount of $678,276.00 for the Schanen Ditch Improvements Phase 2 project for Total Base Bid. Corpus Christi Page 3 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 Attachments: Agenda Memo - Schanen Ditch Location Map - Schanen Ditch Improvements Phase 2 Project Budget - Schanen Ditch Presentation - Schanen Ditch 7. 14-001088 Type A Grant for Accion Texas Loan Buy Down Program for Fiscal Year 2014-2015 Resolution approving the renewal of a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ("Accion") to provide grant amount up to $250,000 for the interest buy down and grant programs for small businesses. Attachments: Agenda Memo - Accion Resolution - Accion Accion Type A Agreement 2012 - 2013 8. 14-001070 Second Reading Ordinance - Amending City Code to implement cost of living increase for City employees (1st Reading 9/30/14) Ordinance amending the Corpus Christi Code of Ordinances, Chapter 39, Personnel, Article III Employee Classification and Compensation System to revise Section 39-303, adjusting the pay grades and steps to implement a one and a half percent (1.5%) cost of living increase as approved in the Fiscal Year 2015 Budget and to add new pay grades 401 and 402; repealing conflicting ordinances and rules; providing for effective date and providing for severance. Attachments: Agenda Memo - Personnel Ordinance FINAL Ordinance - CLEAN Pay Rate Chart - Final 9.16.14 Ordinance - REDLINE Pay Rate Chart - Final 9.16.14 9. 14-001057 Second Reading Ordinance - Appropriating program income revenue for laboratory and public health services (1st Reading 9/30/14) (Requires 2/3 vote) Ordinance appropriating $459,000 from the estimated program income revenue in the No. 1066 Health Grants Fund as State fiscal year 2014-2015 program income to fund laboratory and public health services for the period of September 1, 2014 through August 31, 2015. Attachments: Agenda Memo - Program Income Spreadsheet - Program Income Ordinance - Program Income M. PUBLIC HEARINGS: (NONE) Corpus Christi Page 4 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 N. REGULAR AGENDA: (ITEMS 10 - 12) The following items are motions, resolutions and ordinances that will be considered and voted on individually. 10. 14-001027 Second Reading Ordinance - Approving the Southside FM 2444 Annexation (1st Reading 9/16/14) (Tabled 9/30/14) (Requires 2/3 vote) Ordinance annexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the proposed APEX Wind Farm; providing for a Municipal Services Plan for the annexed tracts of land; providing that the owner and inhabitants are entitled to all rights, privileges, and burdens of other citizens and property owners of the City of Corpus Christi and are subject to and bound by the City Charter, Ordinances, Resolutions and Rules; providing for amendment of the official maps of the City of Corpus Christi; designating area to be added to City Council District number 5; providing for severence; and providing an effective date. Attachments: Agenda Memo Southside FM 2444 Annexation Ordinance with Service Plan Location Map - Southside FM 2444 Annexation Property Owner Letter and Development Agreement 11. 14-001107 Approving the funding of utility improvements in the Southside FM 2444 Annexation Area (Tabled 9/30/14) (Requires 2/3 vote) Resolution regarding the funding of utility improvements in the Southside FM 2444 Annexation Area with property taxes from the area. Attachments: Agenda Memo - Wind Farm Property Tax Revenue.pdf Resolution - use of Southside annexation property taxes (5) 12. 14-001045 Development Agreements for Property Owners with Exemptions in the Southside FM 2444 Annexation Area (Tabled 9/30/14) (Requires 2/3 vote) Resolution granting a Development Agreement for properties in the Proposed Southside FM 2444 Annexation Area where the property contains an agricultural, wildlife management, or timber land exemption established by the Nueces County Appraisal District and where the property owner has requested the City grant a development agreement in lieu of annexation on their qualifying property; providing for a 15 year time limit; providing that the City will not annex land that is the subject of a Development Agreement; providing that the development agreement authorizes the City to enforce all regulations and planning authority of Corpus Christi Page 5 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 the municipality provided the authority does not interfere with the use of the area for agriculture, wildlife management, or timber land uses; providing that the area under the Development Agreement is considered adjacent or contiguous to the city; providing that the agreement is automatically terminated if the landowner files any type of subdivision plat or related development document regardless of how the property is appraised by the Nueces County Appraisal District; providing that the agreement will be filed with the Nueces County Clerk; providing for severance; and providing an effective date. Attachments: Agenda Memo - Resolution for Development Agreements for Annexation Exeml Resolution - Development Agreement Aq Land with exhibits Development Agreement Map - with Windfarm Boundary O. FIRST READING ORDINANCES: (ITEMS 13 - 21) 13. 14-001049 First Reading Ordinance - Appropriating Funds for and awarding the purchase and installation of two (2) 911 workstations (Requires 2/3 vote) Ordinance appropriating $335,866.17 from the Unreserved Fund Balance into the No. 5210 Municipal Information System Fund for the purchase and installation of two (2) 911 workstations; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $335,866.17 in the No. 5210 Municipal Information System Fund; and approving the purchase and installation of two (2) workstations from Intrado System Corporation for $335,866.17 based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments. Attachments: Agenda Memo - Workstations Ordinance - Appropriation Purch Workstations Price Sheet - 911 Workstations.pdf 14. 14-001093 First Reading Ordinance - Appropriating funds for and awarding the purchase of two (2) Peterbilt trucks (Requires 2/3 vote) Ordinance appropriating $437,530 from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of two (2) trucks; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $437,530 in the No. 4200 Wastewater Fund; and approving the purchase of two (2) trucks from Rush Truck Center of Texas for $437,530 based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments. Corpus Christi Page 6 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 Attachments: Agenda Memo - Purch Trucks Ordinance - Appropriation Purch Trucks Price Sheet - Purchase of two (2) Peterbilt Trucks with Heil Low Lift 22' Roll Off 15. 14-001094 First Reading Ordinance - Appropriating funds for and awarding the purchase of twenty-three (23) round bottom containers (Requires 2/3 vote) Ordinance appropriating $164,149 from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of 23 containers; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $164,149 in the No. 4200 Wastewater Fund; and approving the purchase of 23 containers from Wastequip, Beeville, Texas, for $164,149 based on the cooperative purchasing agreement with the National Joint Powers Alliance. Attachments: Agenda Memo - Purch Containers Ordinance - Appropriation Purch Containers Price Sheet - Purchase of twenty-three Round Botton Containers 16. 14-001071 First Reading Ordinance - Approving the FY2014-2015 Crime Control and Prevention District Budget (Requires 2/3 vote) Ordinance approving the FY 2014-2015 amended budget for the Corpus Christi Crime Control and Prevention District to include expenditures of $1,296,212 for the addition of eleven (11) officers, two (2) lieutenants, four (4) vehicles, and related equipment and supplies; and amending the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294, by increasing the number of authorized "Police Lieutenant" positions by two (2) and the number of authorized "Police Officer and Senior Police Officer" by forty eight (48). Attachments: Agenda memo Amend CCD FY2015 budget (2) Ordinance - CCPD budget amendment 2014 - Police Revised FY2015 budget book pages 17. 14-001106 First Reading Ordinance - Accepting and appropriating State grant for Law Enforcement Terrorism Prevention Activities (LETPA) (Requires 2/3 vote) Ordinance Authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $73,235.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program Law Enforcement Terrorism Prevention Activity; and appropriating $73,235.00 from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, Corpus Christi Page 7 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 State Homeland Security Program (SHSP), into the No. 1062 Fire Grants Fund to carry out law enforcement terrorism prevention and protection -oriented activities such as planning, organization, training, exercises, and purchase needed equipment Attachments: Agenda Memo - LETPA Ordinance- TXHLS-SAA-LETPA 2014 - Fire Award Letter - LETPA Agreement - LETPA 18. 14-001109 First Reading Ordinance - Accepting and appropriating State grant for homeland security projects (Requires 2/3 vote) Ordinance authorizing the Mayor or designee to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $161,165.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program; and appropriating $161,165.00 from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program, into the No. 1062 Fire Grants Fund to carry out homeland security projects that will significantly improve local and regional terrorism prevention, preparedness, response, and recovery capabilities Attachments: Agenda Memo - SHSP Grant Ordinance - SHSP Grant Award Letter - SHSP Grant Agreement - SHSP Grant 19. 14-001112 First Reading Ordinance - Accepting and appropriating regional grant for Emergiency Medical Services (EMS) supplies (Requires 2/3 vote) Ordinance authorizing the City Manager or designee to accept a grant from the Coastal Bend Regional Advisory Council in the amount of $2,961.57 to be used for the purchase of supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department; and appropriating $2,961.57 from the Coastal Bend Regional Advisory Council into the No. 1056 Ambulance Grant Fund to purchase supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department Attachments: Agenda Memo - CBRAC Grant Ordinance - CBRAC Grant 20. 14-00982 First Reading Ordinance - Approving and appropriating funds for an engineering design contract for Choke Canyon Dam Spillway Gate Rehabilitation (Requires 2/3 vote) Corpus Christi Page 8 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 Ordinance approving and appropriating a transfer of $4,300,000 from the Unreserved Fund Balance in No. 4050 Choke Canyon Fund Account No. 251400 Reserve for Choke Canyon Maintenance into Water CIP Fund 4080 for Project No. E14043 Choke Canyon Dam Spillway Gate Rehabilitation; amending the FY2014-2015 Operating Budget adopted by Ordinance No. 030294 to increase expenditures in the amount of $4,300,000; and authorizing the City Manager or designee to execute the engineering contract with Freese and Nichols, Inc. of Corpus Christi, Texas in the amount of $381,220 for the Choke Canyon Dam Spillway Gate Rehabilitation for design, bid, and construction phase services. Attachments: Agenda Memo - Choke Canyon Dam Ordinance - Choke Canyon Dam Project Budget - Choke Canyon Dam Location Map - Choke Canyon Dam Contract - Choke Canyon Dam Presentation - Choke Canyon Dam 21. 14-001078 First Reading Ordinance - Type A Grant for Conexia Inc (Requires 2/3 vote) Ordinance approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and Conexia Inc ("Conexia") to provide a grant of up to $160,000, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Conexia Business Incentive Agreement for the creation of jobs; and appropriating $160,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund for said business incentive grant from the Type A Corporation to Conexia; and changing the FY 2014-2015 operating budget, adopted by Ordinance No. 030294, by increasing proposed expenditures by $160,000. Attachments: Agenda Memo - Conexia Ordinance - Conexia Agreement - Conexia Business Service Agreement - Conexia P. FUTURE AGENDA ITEMS: (ITEMS 22 - 24) The following items are for Council's informational purposes only. No action will be taken and no public comment will be solicited. 22. 14-001026 Supply Agreement(s) for the purchase of supplies for the manufacturing and installation of traffic signs (Requires 2/3 vote) Motion approving supply agreement(s) with the following companies in Corpus Christi Page 9 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 the following amounts for traffic sign blanks, sheeting/roll goods, and traffic sign posts/anchors in accordance with Bid Invitation No. BI -0240-14, based on lowest responsible bidder, for an estimated annual expenditure of $201,523.65. The terms of the agreements shall be for twelve (12) months with options to extend for up to two (2) additional twelve-month periods, subject to the approval of the suppliers and the City Manager or designee. Funds have been budgeted by Streets Department in FY 2014- 2015. Custom Products Corp. Jackson, Mississippi Group I $42,114.00 Centerline Supply LLC San Antonio, Texas Group IV $67,768.50 Vulcan Signs 3M Company Foley, Alabama St. Paul, Minnesota Group II Group III $38,530.75 $53,110.40 Total: $201,523.65 Attachments: Agenda Memo - Traffic Signage Bid Tabulation - Traffic Signs 23. 14-001024 Approving agreement for temporary tax abatement for the development located in the 900 block of North Water Street (Requires 2/3 vote) Resolution authorizing the execution of an agreement with Prosperity Bank providing for temporary property tax abatement. Attachments: Agenda Memo - Prosperity Bank Resolution - Prosperity Bank COF - Prosperity Bank Tax Abatement Agreement - Prosperity Bank 24. 14-00986 Approve the FY2014-2015 HOME Program set-aside funds. Motion to approve the FY2014-2015 HOME Program set-aside funds. Attachments: Agenda Memo - HOME FY2014-2015 Attachment D 2014-2015 HOME Final September 2014 Certification of funds - HOME FY2014-2015 FUTURE CORPORATION MEETING: (ITEM 25) 25. 14-00987 Future Board of Director's Meeting of the Corpus Christi Community Improvement Corporation Corpus Christi Page 10 Printed on 10/10/2014 City Council Meeting Agenda - Final October 14, 2014 Board of Director's Meeting of the Corpus Christi Community Improvement Corporation Attachments: Agenda Memo for CCCIC Board Meeting 09-2014 CCCIC Board Meeting Agenda CCCIC Board Minutes for July 2014 CCCIC Treasurer's Report 07-31-2014 Q. BRIEFINGS TO CITY COUNCIL: (ITEM 26) The following items are for Council's informational purposes only. Council may give direction to the City Manager, but no other action will be taken and no public comment will be solicited. 26. 14-00940 Texas Municipal League Presentation - Credit Access Business Regulation Ordinance Attachments: Agenda Memo - Payday lending Ordinance - TML Credit Access Business Model Map - State Licensed Credit Access Businesses OCCC Credit Access Business Annual Reporting for Corpus Christi MSA Implementation information from other Texas Cities Consumer Financial Protection Bureau Report R. LEGISLATIVE AGENDA: (ITEM 27) 27. 14-001115 Adopting the State Legislative Agenda for the 84th Texas Legislature Resolution Adopting the City of Corpus Christi's State Legislative Agenda for the 84th Texas Legislature. Attachments: Agenda Memo - 84th Legislature Agenda Resolution - 84th Legislature Agenda Presentation - 84th Lege Priorities Future Agenda S. ADJOURNMENT Corpus Christi Page 11 Printed on 10/10/2014 Corpus Christi Meeting Minutes City Council 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, September 30, 2014 11:30 AM Council Chambers Public Notice - - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. A. Mayor Nelda Martinez to call the meeting to order. Mayor Pro Tem Garza called the meeting to order. B. Invocation to be given by Elder Henry Williams, Corpus Christi Christian Fellowship. Elder Henry Williams gave the invocation. C. Pledge of Allegiance to the Flag of the United States to be led by Donna James -Spruce, Safety & Risk Manager. Safety & Risk Manager Donna James -Spruce led the Pledge of Allegiance. D. City Secretary Rebecca Huerta to call the roll of the required Charter Officers. City Secretary Rebecca Huerta called the roll and stated that a quorum of the Council and the required Charter Officers were present to conduct the meeting. City Secretary Huerta announced that Mayor Martinez would be absent and Council Member Leal has been granted a leave of absence. Charter Officers: City Manager Ron Olson, City Attorney Miles K. Risley, and City Secretary Rebecca Huerta. Present: 6 - Council Member Kelley AIIen,Council Member Rudy Garza,Council Member Chad Magill,Council Member Colleen Mclntyre,Council Member Lillian Riojas, and Council Member Mark Scott Absent: 3 - Mayor Nelda Martinez,Council Member Priscilla Leal, and Council Member David Loeb E. Proclamations / Commendations 1. Proclamation declaring September 17, 2014 as, "Mission of Mercy Mobile Medical Program Clinic Day" Proclamation declaring October 3-9, 2014 as, "Ideas Week Corpus Christi" Proclamation declaring October 5-11, 2014 as, "National Fire Corpus Christi Page 1 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 Prevention Week" Proclamation declaring October 15, 2014 as, "Pregnancy and Infant Loss Awareness & Remembrance Day" Mayor Pro Tem Garza presented the proclamations. G. CITY MANAGER'S COMMENTS / UPDATE ON CITY OPERATIONS: Mayor Pro Tem Garza deviated from the agenda and referred to City Manager's Comments. a. Other City Manager Olson stated that staff has been monitoring the impact of the recent rain and reported that the rain has had a minimal impact because it was not falling in the drainage basin. I. MINUTES: 4. Regular Meeting of September 23, 2014 Mayor Pro Tem Garza deviated from the agenda and referred to approval of the minutes. Council Member Magill made a motion to approve the minutes, seconded by Council Member Scott and passed unanimously. K. EXPLANATION OF COUNCIL ACTION: L. CONSENT AGENDA: (ITEMS 6 - 17) Approval of the Consent Agenda 6. Mayor Pro Tem Garza deviated from the agenda and referred to the Consent Agenda. There were no comments from the Council or the public. The consent agenda items were passed and approved by one vote as follows: Aye: 6 - Council Member Allen, Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Riojas and Council Member Scott Absent: 3 - Mayor Martinez, Council Member Leal and Council Member Loeb Abstained: 0 Approving a construction contract and an engineering contract for construction observation services for the Wastewater Service Line Repair and Clean-out Installation and Man -hole Ring and Cover Adjustment Program FY 2014-2015 Motion authorizing the City Manager or designee to execute a construction contract with RCM Constructors, Inc. of Corpus Christi, Texas in the amount of $657,391 for the Wastewater Service Line Corpus Christi Page 2 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 Repair and Clean-out Installation and Manhole Ring and Cover Adjustment Program FY 2014-2015 for the base bid and to execute an engineering contract with Engineering & Construction Management Services, LLCof Corpus Christi, Texas in the amount of $69,300, for the Wastewater Service Line Repair and Clean-out Installation and Manhole Ring and Cover Adjustment Program FY 2014-2015 for construction observation services. This Motion was passed on the Consent Agenda. Enactment No: M2014-136 7. Purchase Six Months End of Lease Extension from ePlus for Mobile Data Terminals used by Public Safety Motion authorizing the City Manager or designee to execute all documents necessary to purchase six months end of lease extension from ePlus of Herndon, Virginia for 207 Public Safety mobile data terminals in the amount of $31,643.43 per month for a total cost of $189,860.58. Funds are available in the MIS FY2013-2014 budget. This Motion was passed on the Consent Agenda. Enactment No: M2014-137 8. Purchase of Localizer Array System for the Corpus Christi International Airport Motion approving the purchase of a localizer array system for the Corpus Christi International Airport (CCIA) with Thales ATM, U.S., Overland Park, Kansas, based on sole source for the total amount of $268,612.00. Ninety (90) percent of the project is funded through a Federal Administration Grant with a ten (10) percent local match. This Motion was passed on the Consent Agenda. Enactment No: M2014-138 9. Installation of Monitors for the Multi -User Flight Information Display System Motion approving the installation of twenty nine (29) monitors and related materials at the Corpus Christi International Airport (CCIA) for the Multi -User Flight Information Display System (MUFIDS) from MCFSA LTD., San Antonio, Texas in accordance with the State of Texas Cooperative Purchasing Program for a total expenditure of $155,050.00. Funds have been budgeted in the Airport Fund No. 4610 in FY 2013- 2014. Corpus Christi Page 3 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 This Motion was passed on the Consent Agenda. Enactment No: M2014-139 10. Approving a legal services contract with Tim Brown for general water issues Motion to authorize the City Manager or designee to execute a legal services agreement with Timothy L. Brown to advise the City on water rights and general water law issues, at monthly rate of $7,000 plus expenses. This Motion was passed on the Consent Agenda. Enactment No: M2014-140 11. Approval of Tax Abatement Guidelines Resolution adopting the City's Guidelines and Criteria for Granting Tax Abatements 12. This Resolution was passed on the Consent Agenda. Enactment No: 030296 Second Reading Ordinance - Rezoning from Single -Family to Neighborhood Commercial and Multi -family at 7901 South Padre Island Drive (1st Reading 9/23/14) Case No. 0814-01 Gladys Mattie Smith Marital Trust, Patricia Peterson Nuss and Chris Ann Peterson Brown: A change of zoning from "RS -6" Single Family 6 to "CN -1" Neighborhood Commercial District on Tract 1 and "RM -3" Multifamily 3 District on Tract 2 resulting in a change to the Future Land Use Plan. The property is described as being 14.24 acres out of Lots 23 and 24, Section 28, Flour Bluff and Encinal Farm and Garden Tracts, located south of Williams Drive between Ennis Joslin Road and Paul Jones Avenue. Planning Commission and Staff Recommendation (August 13, 2014): Approval of the rezoning from the "RS -6" Single -Family 6 District to "CN -1" Neighborhood Commercial District on Tract 1 and "RM -3" Multifamily 3 District on Tract 2. Ordinance: Ordinance amending the Unified Development Code ("UDC"), upon application by Gladys Mattie Smith Marital Trust, Patricia Peterson Nuss and Chris Ann Peterson Brown ("Owners"), by changing the UDC Zoning Map in reference to a 14.24 -acre tract of land out of Lots 23 and 24, Section 28, Flour Bluff and Encinal Farm and Garden Tracts, from the "RS -6" Single -Family 6 District to the "CN -1" Neighborhood Corpus Christi Page 4 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 Commercial District on Tract 1 and to the "RM -3" Multifamily 3 District on Tract 2; amending the Comprehensive Plan to account for any deviations; and providing for a repealer clause and publication. This Ordinance was passed on second reading on the Consent Agenda. Enactment No: 030297 13. Second Reading Ordinance - Appropriating fund proceeds in the City's Capital Improvement Program Funds (1st Reading 9/23/14) 14. Ordinance appropriating funds as detailed in Attachment 1 summarized as follows: $19,293.27 in AIRPORT interest earnings for the City's match for future FAA Grant Projects; $201,380.61 in BOND PROCEED interest earnings for Bayfront, Public Facilities, Fire, Police, Public Health and Safety, Sanitary Landfill, Convention Center, Parks, and Streets for the stated bond projects not yet complete, similar projects to be approved by City Council or the payment of debt service; $272,814.59 in UTILITY REVENUE BOND interest earnings for the support of the City's approved Capital Improvement Program; $135,529.63 in SPECIALTY BOND PROCEED interest earnings for Sales Tax Bonds for the Seawall, Packery Channel Bonds, and Energy Efficiency Bonds for the stated bond projects not yet complete, the support of the City's approved Capital Improvement Program, specific military supported projects and as determined by the Type A Board; and appropriating $239,234.33 in OTHER UNAPPROPRIATED FUNDS for Street Assessments, Construction Yard Lease Rental, Sale of Scrap, and Texas Department of Transportation Refund for the repair of city street due to private construction and other street expenses to be approved by City Council; and Changing the FY 2014 Capital Improvement Budget adopted by Ordinance No. 029916 to increase expenditures by total of $868,252.43. This Ordinance was passed on second reading on the Consent Agenda. Enactment No: 030298 Second Reading Ordinance - Appropriating funds for Corpus Christi Downtown Revitalization Alliance (CCDRA) Development Director (1st Reading 9/23/14) Ordinance appropriating $30,000 in the Parking Improvement Fund 1040 from Parking Meter Collection revenue for payment to the Corpus Christi Downtown Revitalization Alliance and changing the FT2013-2014 Operating Budget adopted by Ordinance No. 029915 by increasing expenditures in the Parking Improvement Fund by $30,000. This Ordinance was passed on second reading on the Consent Agenda. Enactment No: 030299 Corpus Christi Page 5 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 15. Second Reading Ordinance - Appropriating funds to pay for emergency repairs to Police Department roof. (1st Reading 9/23/14) Ordinance appropriating $267,214.82 from the unreserved fund balance in the No. 1020 General Fund for emergency repairs to the roof of the Police Department; and changing the FY 2013-2014 operating budget adopted by Ordinance No. 029915 by increasing expenditures by $267,214.82. This Ordinance was passed on second reading on the Consent Agenda. Enactment No: 030300 16. Second Reading Ordinance - Appropriating funds to refund wastewater lot/acreage fees paid (1st Reading 9/23/14) 17. Ordinance appropriating $5,928.97 from the No. 4220 Wastewater Trunk System Trust Fund to refund Jack R. Day, Jr., the wastewater lot/acreage fee paid since wastewater services are not available nor will it be available within the next 5 years as related to Oak Terrace Unit 2, Block 4, Lot 6A. This Ordinance was passed on second reading on the Consent Agenda. Enactment No: 030301 Second Reading Ordinance - Approving a wastewater reimbursement agreement and appropriating funds for property located on the south side along Holly Road, east of Rodd Field Road (SH 357) and west of Encino Drive. (1st Reading 9/23/14) Ordinance authorizing execution of a wastewater collection line extension construction and reimbursement agreement ("Agreement") with Palm Land Investment, Inc. ("Developer"), for the construction of a wastewater collection line and appropriating $243,846.90 from the No. 4220 Sanitary Sewer Collection Line Trust Fund to reimburse the Developer in accordance with the Agreement. This Ordinance was passed on second reading on the Consent Agenda. Enactment No: 030302 F. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. PLEASE LIMIT PRESENTATIONS TO THREE MINUTES. 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. Corpus Christi Page 6 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 Mayor Pro Tem Garza called for comments from the public. Susie Luna Saldana stated that citizens in the community are concerned with the increasing fees. Dick Messberger spoke regarding the potential impact the proposed windfarm will have on military bases. Captain Mark McLaughlin, Former Commanding Officer at Naval Air Station Kingsville, stated that where the location APEX plans to build the windfarm is not conducive to air traffic control and radars at NAS -Kingsville and Corpus Christi International Airport, or to future growth. Prasant Chhotu spoke in support of the southside annexation. Jane Helm spoke in opposition to the location of the proposed windfarm. Juan Araiza spoke regarding ethics and transparency and a possible conflict of interest on the agreement between the City and the Corpus Christi Country Club regarding effluent water. Lydia Bray spoke in opposition to the windfarm development. Abel Alonzo expressed his displeasure with citizens attacking the character and credibility of the council members. H. EXECUTIVE SESSION: (ITEMS 2-3) 2. 3. Mayor Pro Tem Garza deviated from the agenda and referred to the day's executive sessions. Mayor Pro Tem Garza announced that Council would discuss Item 18 in executive session pursuant to Section 551.071 of the Texas Government Code for consultation with attorneys concerning legal issues related to the ordinance approving the Southside FM2444 annexation. City Secretary Huerta announced that Council Member Magill recused himself from the discussion on Item 18. The Council went into executive session. Executive session pursuant to Section 551.071 of the Texas Gov't Code for consultation with attorneys regarding Scorpio Development, LLC v. City of Corpus Christi, with possible discussion and action in open session. Mayor Pro Tem Garza referred to Item 2 and stated that the following motion was discussed for consideration: Motion authorizing the settlement of Cause No. 2011-CCV-60894-2, styled Scorpio Development, LLC v. City of Corpus Christi; County Court of Law No. 2, Nueces County, Texas in the amount of $110,000 to be effective October 1, 2014. Council Member Allen made a motion to approve the motion, seconded by Council Member McIntyre, and passed unanimously. Aye: 6 - Council Member Allen, Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Riojas and Council Member Scott Absent: 3 - Mayor Martinez, Council Member Leal and Council Member Loeb Abstained: 0 Enactment No: M2014-135 Executive session pursuant to Section 551.071 of the Texas Government Code for consultation with attorneys regarding fire collective bargaining negotiations with possible discussion and action in open session. Corpus Christi Page 7 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 This E -Session Item was discussed in executive session. M. PUBLIC HEARINGS: (NONE) N. REGULAR AGENDA: (ITEMS 18 - 20) 18. Second Reading Ordinance - Approving the Southside FM2444 Annexation (1st Reading 9/16/14) (Tabled 9/30/14) (Requires 2/3 vote) Ordinance annexing Laureles Farm Tracts adjacent to the City limits located along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the proposed APEX Wind Farm; providing for a Municipal Services Plan for the annexed tracts of land; providing that the owner and inhabitants are entitled to all rights, privileges, and burdens of other citizens and property owners of the City of Corpus Christi and are subject to and bound by the City Charter, Ordinances, Resolutions and Rules; providing for amendment of the official maps of the City of Corpus Christi; designating area to be added to City Council District number 5; providing for severence; and providing an effective date. Mayor Pro Tem Garza referred to Items 18, 19, and 20 and stated that the annexation issue is a very serious topic for the City Council and the community and the Council would prefer that the Mayor and the entire City Council be present. Council Member McIntyre made a motion to table Items 18, 19 and 20 until October 14, 2014, seconded by Council Member Allen and passed unanimously. Aye: 0 Abstained: 0 19. Approving the funding of utility improvements in the Southside FM2444 Annexation Area (Tabled 9/30/14) (Requires 2/3 vote) Resolution regarding the funding of utility improvements in the Southside FM2444 Annexation Area with property taxes from the area. This item was discussed under Item 18. This Resolution was tabled to October 14, 2014. 20. Development Agreements for Property Owners with Exemptions in the Southside FM 2444 Annexation Area (Tabled 9/30/14) (Requires 2/3 vote) Resolution granting a Development Agreement for properties in the Proposed Southside FM 2444 Annexation Area where the property contains an agricultural, wildlife management, or timber land Corpus Christi Page 8 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 exemption established by the Nueces County Appraisal District and where the property owner has requested the City grant a development agreement in lieu of annexation on their qualifying property; providing for a 15 year time limit; providing that the City will not annex land that is the subject of a Development Agreement; providing that the development agreement authorizes the City to enforce all regulations and planning authority of the municipality provided the authority does not interfere with the use of the area for agriculture, wildlife management, or timber land uses; providing that the area under the Development Agreement is considered adjacent or contiguous to the city; providing that the agreement is automatically terminated if the landowner files any type of subdivision plat or related development document regardless of how the property is appraised by the Nueces County Appraisal District; providing that the agreement will be filed with the Nueces County Clerk; providing for severance; and providing an effective date. This item was discussed under Item 18. This Resolution was tabled to October 14, 2014. J. BOARD & COMMITTEE APPOINTMENTS: 5 Advisory Committee on Community Pride Corpus Christi Convention and Visitors Bureau Ethics Commission Food Service Advisory Committee Mayor's Fitness Council Regional Health Awareness Board Reinvestment Zone No. Three Board Retired and Senior Volunteer Program Advisory Committee Transportation Advisory Committee Watershore and Beach Advisory Committee Mayor Pro Tem Garza deviated from the agenda and referred to board and committee appointments. The following appointments were made: Advisory Committee on Community Pride Mayor Pro Tem Garza made a motion on behalf of Mayor Martinez to appoint Marie T. Guajardo and Eric Newman, seconded by Council Member Magill and passed unanimously. Mayor's Fitness Council Mayor Pro Tem Garza made a motion on behalf of Mayor Martinez to appoint Dr. Misty Kesterson and David Keith, seconded by Council Member McIntyre and passed unanimously. Corpus Christi Convention and Visitors Bureau Council Member Scott made a motion to reappoint Ken Griffin, James "Jim" Corpus Christi Page 9 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 Needham, Darcy Jones, and Toby Hammett Futrell, seconded by Council Member Magill and passed uanimously. Council Member McIntyre made a motion to appoint Terri Adams and Jason Rodriguez, seconded by Council Member Riojas and passed unanimously. Ethics Commission Council Member McIntyre made a motion to reappoint David Ghably, Haysam D. Dawod, and Larry L. White, seconded by Council Member Magill and passed unanimously. Food Service Advisory Committee Council Member Magill made a motion to realign Anthony Hernandez from Community at Large to Food Industry, seconded by Council Member McIntyre and passed unanimously. Council Member McIntyre made a motion to reappoint Carlos R. Moreno, Manuel Ortega, Robert Boyle and Anthony Hernandez, seconded by Council Member Scott and passed unanimously. Council Member Magill made a motion to appoint Dr. Patricia Polastri, seconded by Council Member Scott and passed unanimously. Regional Health Awareness Board Council Member Magill made a motion to reappoint Ambar Qureshi, seconded by Council Member McIntyre and passed unanimously. Reinvestment Zone No. Three Board Council Member Magill made a motion to appoint Stefany Schade, seconded by Council Member Allen and passed unanimously. Retired and Senior Volunteer Program Advisory Committee Council Member Magill made a motion to reappoint Anne Bauman, seconded by Council Member McIntyre and passed unanimously. Council Member Magill made a motion to appoint Renee I. Hundley, seconded by Council Member McIntyre and passed unanimously. Transportation Advisory Committee Council Member Magill made a motion to appoint Christina Cisneros -Guzman, seconded by Council Member Scott and passed unanimously. Council Member Magill made a motion to appoint Anthony Gavlik, seconded by Council Member McIntyre and passed unanimously. Council Member Magill made a motion to appoint Leo Rios, secnded by Council Member Scott and passed unanimously. Watershore and Beach Advisory Committee Council Member Magill made a motion to appoint Robert Kent, seconded by Council Member Allen and passed unanimously. REGULAR AGENDA: (ITEM 21) 21. Second Reading Ordinance - Approving the Capital Improvement Corpus Christi Page 10 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 Budget for fiscal year 2014-2015 (1st Reading 9/23/14) Ordinance approving the Fiscal Year 2014 - 2015 Capital Budget and Capital Improvement Planning Guide in the amount of $265,257,900. Mayor Pro Tem Garza referred to Item 21. Assistant City Manager Gus Gonzalez stated that the purpose of this item is to approve the second reading of the FY2014-2015 Capital Budget and Capital Improvement Planning (CIP) Guide. Mr. Gonzalez stated that the wastewater tab has been inserted into the CIP, at the direction of the City Council, in the amount of $47,820,900. There were no comments from the Council or the public. Council Member Magill made a motion to amend the ordinance prior to second reading to change the amount to $313,078,800 to include the wastewater tab, seconded by Council Member McIntyre and passed unanimously. This Ordinance was passed on second reading as amended and approved with the following vote: Aye: 6 - Council Member Allen, Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Riojas and Council Member Scott Absent: 3 - Mayor Martinez, Council Member Leal and Council Member Loeb Abstained: 0 Enactment No: 030303 O. FIRST READING ORDINANCES: (ITEMS 22 - 23) 22. First Reading Ordinance - Amending City Code to implement cost of living increase for City employees Ordinance amending the Corpus Christi Code of Ordinances, Chapter 39, Personnel, Article III Employee Classification and Compensation System to revise Section 39-303, adjusting the pay grades and steps to implement a one and a half percent (1.5%) cost of living increase as approved in the Fiscal Year 2015 Budget and to add new pay grades 401 and 402; repealing conflicting ordinances and rules; providing for effective date and providing for severance. Mayor Pro Tem Garza referred to Item 22. Director of Human Resources Yasmine B. Chapman stated that the purpose of this item is to amend the City Code of Ordinances, Chapter 39, Article III to revise pay grades and steps to include the 1.5% cost of living increase approved in the budget. There were no comments from the Council or the public. This Ordinance was passed on first reading and approved with the following vote: Aye: 6 - Council Member Allen, Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Riojas and Council Member Scott Absent: 3 - Mayor Martinez, Council Member Leal and Council Member Loeb Abstained: 0 Corpus Christi Page 11 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 23. First Reading Ordinance - Appropriating program income revenue for laboratory and public health services Ordinance appropriating $459,000 from the estimated program income revenue in the No. 1066 Health Grants Fund as State fiscal year 2014-2015 program income to fund laboratory and public health services for the period of September 1, 2014 through August 31, 2015. Mayor Pro Tem Garza referred to Item 23. Director of Public Health Annette Rodriguez stated that the purpose of this item is to appropriate $459,000 from the estimated program income revenue to fund laboratory and public health services for the period of September 1, 2014 through August 31, 2015. There were no comments from the Council or the public. This Ordinance was passed on first reading and approved with the following vote: Aye: 6 - Council Member Allen, Council Member Garza, Council Member Magill, Council Member McIntyre, Council Member Riojas and Council Member Scott Absent: 3 - Mayor Martinez, Council Member Leal and Council Member Loeb Abstained: 0 P. FUTURE AGENDA ITEMS: (ITEMS 24 - 26) Mayor Pro Tem Garza referred to Future Agenda Items. City Manager Ron Olson stated that staff did not have any planned presentations. 24. Supply agreement for lease of computers, servers and other computer peripherals and related products (Requires 2/3 vote) Motion approving a supply agreement with CSI Leasing, Inc., Saint Louis, Missouri for lease of approximately 300 desktop computers, 200 laptop computers, 20 servers, and other computer peripherals and related products in accordance with the State of Texas cooperative purchasing program and the City's Master Lease Agreement No. 1880CCC for an estimated expenditure of $1,398,138.27, of which $30,503.23 is required for the remainder of FY 2013-2014. The term of the contract will be for twelve months with an option to extend for up to three additional twelve month periods subject to the approval of the supplier and the City Manager or designee. This Motion was recommended to consent agenda. 25. Engineering construction contract for the Schanen Ditch Improvements Phase 2 Project (Requires 2/3 vote) Motion authorizing the City Manager, or designee, to execute a construction contract with Saenz Brothers Construction, LLC, in the amount of $678,276.00 for the Schanen Ditch Improvements Phase 2 project for Total Base Bid. Corpus Christi Page 12 Printed on 10/9/2014 City Council Meeting Minutes September 30, 2014 This Motion was recommended to consent agenda. 26. Type A Grant for Accion Texas Loan Buy Down Program for Fiscal Year 2014-2015 Resolution approving the renewal of a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ("Accion") to provide grant amount up to $250,000 for the interest buy down and grant programs for small businesses. This Resolution was recommended to consent agenda. Q. BRIEFINGS TO CITY COUNCIL: (ITEM 27) 27. Texas State Aquarium Lease Agreement R. ADJOURNMENT Mayor Pro Tem Garza referred to 27. Assistant City Manager Wes Pierson stated that the purpose of this item is to discuss a request by the Texas State Aquarium for a new lease agreement. Mr. Pierson provided a background of the current lease agreement with the Texas State Aquarium; the request made by the Texas State Aquarium and the options for consideration. Tom Schmid, President and CEO of the Texas State Aquarium, provided information on the proposed expansion of the aquarium and Caribbean Journey attraction; the economic impact of the private/public partnership; and a computer animation of the expansion project. Mr. Pierson said staff is recommending the creation of a new lease -purchase agreement with the same terms as the existing agreement, but with the option for the Texas State Aquarium to purchase; based upon the level of investment and continued operation over a period of time. Council members spoke regarding the following topics: the relationship between the City and the Texas State Aquarium; the addition of the Caribbean Journey; the performance-based purchasing agreement; the benefits to the community; liability to the City; and the timeline. The meeting was adjourned at 2:26 p.m. Corpus Christi Page 13 Printed on 10/9/2014 AGENDA MEMORANDUM Future Item for the City Council Meeting of September 30, 2014 Action Item for the City Council Meeting of October 14, 2014 DATE: September 30, 2014 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com 361-826-3169 Michael Armstrong, Director of Information System michaelar@cctexas.com 361-826-3740 Lease of Computers, Servers and other computer peripherals and related products CAPTION: Motion approving a supply agreement with CSI Leasing, Inc., Saint Louis, Missouri for lease of approximately 300 desktop computers, 200 laptop computers, 20 servers, and other computer peripherals and related products in accordance with the State of Texas cooperative purchasing program and the City's Master Lease Agreement No. 1880CCC for an estimated expenditure of $1,398,138.27. The term of the contract will be for twelve months with an option to extend for up to three additional twelve month periods subject to the approval of the supplier and the City Manager or designee. PURPOSE: This lease contract will provide for the lease of computers, servers and other computer peripherals and related products to be ordered by various departments throughout the year. BACKGROUND AND FINDINGS: The desktop computers and servers will be leased for a forty-eight month term. The laptop computers will be leased for a thirty-six (36) month term. The decision to lease the laptops for a 36 month term is based upon the expected life and maintenance costs associated with a laptop computer. The laptops are moved from location to location, may be exposed to extreme temperatures and are susceptible to damage. These conditions tend to lower the expected life of a laptop unit and increase the maintenance cost. Desktop computers and servers are normally located in a stable environment that provide for longer term performance. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: The lease is a continuation of the City's program to lease computers in lieu of purchasing them outright. The program's objectives are targeted at: 1) providing users with the latest technology once every three years for laptops and four years for desktops 2) providing a disposal process for old computer equipment, 3) spreading the cost associated with acquiring computer equipment over the lease period and 4) decreasing the cost associated with maintaining computer equipment by including a warranty for the duration of the lease period. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and Texas State procurement laws. EMERGENCY / NON -EMERGENCY: Non -Emergency. DEPARTMENTAL CLEARANCES: Municipal Information Systems (MIS) Department Police Department FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2012-2013 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $3,696,283.97 $1,398,138.27 $5,063,919.01 Encumbered / Expended Amount $407,992.85 $407,992.85 This item $0.00 $1,398,138.27 $1,398,138.27 BALANCE $3,288,291.12 $3,288,291.12 Fund(s): Monies are budgeted in the 530180 expense account (non -capital lease payments) of the various operational budgets of the requesting departments. Comments: No funds are required for FY 2013-2014. However, the $1,398,138.27 will be requested during each of the following budget years. The City will order computers as needed and is not compelled to order a minimum number of computers in any given year. If at the end of the twelve-month term of the contract, if all 300 desktop computers, 200 laptop computers 20 servers and other computer peripherals and related products are ordered, the City will obligate to the $1,398,138.27 of the award. Annual funding will be requested during each of the following budget years. The ongoing contract is contingent upon all future budget appropriations. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet. CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER - GABRIEL MALDONADO Price Sheet DIR CONTRACT NO.: DIR-SDD-1880 CSI Leasing, Inc. ITEM DESCRIPTION Item Lease CSI Leasing, Inc. Saint Louis, Missouri Monthly payment each Monthly payment total Three Year payment total Four Year payment total QTY. UNIT QTY UNIT UNIT PRICE LEASE RATE 1. Public Safety Vehical Computer and peripheral 70 Each 48 Months $6,000.00 0.0227 $136.20 $9,534.00 $457,632.00 2. Networking Upgrades Cisco Catalust 3850 Switch WS -C#850 - 24P -S 14 Each 48 Months $5,000.00 0.0231 $115.50 $1,617.00 $77,616.00 Module & Power Supply 12 Each 48 Months $1,375.00 0.0236 $32.45 $389.40 $18,691.20 Wireless Mesh Router 50 Each 48 Months $3,500.00 0.0236 $82.60 $4,130.00 $198,240.00 3. Desktop Computer HP ProDesk 600 G1 Tower Desktop, PC 20" Monitor 300 Each 48 Months $773.25 0.0227 $17.55 $5,265.83 $252,759.96 4. Laptop Computer HP ProBook 640 G1 Notebook PC 50 Each 36 Months $867.01 0.0276 $23.93 $1,196.47 $43,073.06 14" Standalone HP ProBook 640 G1 Notebook PC 50 Each 36 Months $1,119.25 0.0276 $30.89 $1,544.57 $55,604.34 14" Desktop Replacement HP ProDesk 650 G1 Notebook PC 50 Each 36 Months $874.01 0.0276 $24.12 $1,206.13 $43,420.82 15" Standalone HP ProDesk 650 G1 Notebook PC 50 Each 36 Months $1,126.25 0.0276 $31.08 $1,554.23 $55,952.10 15" Desktop Replacement 3. Servers 20 Each 48 Months 8,800.00 0.0231 $203.28 4,065.60 195,148.80 Total Grand Total Award: $1,398,138.27 $198,050.31 $1,200,087.96 AGENDA MEMORANDUM Future item for the City Council Meeting of September 30, 2014 Action item for the City Council Meeting of October 14, 2014 DATE: August 21, 2014 TO: Ronald L. Olson, City Manager THRU: Gustavo Gonzalez, P. E., Assistant City Manager of Public Works and Utilities gustavogo@cctexas.com (361) 826-3897 FROM: Valerie H. Gray, P. E., Interim Executive Director of Public Works valerieg@cctexas.com (361) 826-3729 CAPTION: Engineering Construction Contract Schanen Ditch Improvements Phase 2 Motion authorizing the City Manager, or designee, to execute a construction contract with Saenz Brothers Construction, LLC of Donna, Texas in the amount of $678,276.00 for the Schanen Ditch Improvements Phase 2 project for the total base bid. PURPOSE: The purpose of this Agenda Item is to obtain authority to execute the construction contract with Saenz Brothers Construction, LLC for Schanen Ditch Improvements Phase 2. BACKGROUND AND FINDINGS: Phase 2 of this project continues improvements to the lower reach of Schanen Ditch, a major drainage channel for the City of Corpus Christi. Improvements include outfalls into the Channel with new headwalls, wingwalls, reinforced concrete pipe, and rip -rap, as well as excavation and grading to address existing sloughed or damaged areas of the channel, to establish the proper side slopes for the channel, and to provide slope protection for the side slopes. On July 23, 2014, the City received proposals from four (4) bidders and the bidders and their respective bids are as follows: Contractor Base Bid Saenz Brothers Construction, LLC Pleasanton, Texas $678,276.00 Salinas Construction Technologies, Ltd. Pleasanton, Texas $698,113.49 ADK Environmental, Inc. Odem, Texas $839,628.00 K:\ENGINEERING\LEGISTAR\11 - SEPTEMBER 30\SCHANEN DITCH\AGENDA MEMO - SCHANEN DITCH.DOCX JE Construction Services, LLC Corpus Christi, Texas $1,058,615.18 ALTERNATIVES: 1. Authorize execution of the construction contract. 2. Do not authorize execution of the construction contract. (Not Recommended) OTHER CONSIDERATIONS: The City's consultant, Freese and Nichols, Inc., conducted a bid analysis of the four (4) proposals submitted to the City. Freese and Nichols, Inc. determined that the lowest bidder based on the Total Base Bid is Saenz Brothers Construction, LLC of Donna, Texas. Based on the information submitted, Saenz Brothers Construction, LLC has the experience and resources to complete the project. CONFORMITY TO CITY POLICY: Conforms to statutes regarding construction procurement criteria and FY 2013-2014 Storm Water Capital Improvement Planning (CIP) Budget. EMERGENCY / NON -EMERGENCY: Not applicable DEPARTMENTAL CLEARANCES: Utilities Department FINANCIAL IMPACT. Fiscal Year 2013-2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Budget $0.00 $1,000,000.00 $2,400,000.00 $3,400,000.00 Encumbered / Expended Amount $0.00 $0.00 $0.00 $0.00 This item $0.00 $678,276.00 $0.00 $678,276.00 Future Anticipated Expenditures This Project $0.00 $282,935.61 $0.00 $282,935.61 BALANCE $0.00 $38,788.39 $2,400,000.00 $2,438,788.39 Fund(s): Comments: RECOMMENDATION: City staff recommends that the construction contract be awarded to Saenz Brothers Construction, LLC of Donna, Texas in the amount of $678,276.00 for the Schanen Ditch Improvements Phase 2 project. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation K:\ENGINEERING\LEGISTAR\11 - SEPTEMBER 30\SCHANEN DITCH\AGENDA MEMO - SCHANEN DITCH.DOCX Project Location PROJECT #E11073 LOCATION MAP NOT TO SCALE Schanen Ditch Improvements Phase 2 CITY COUNCIL EXHIBIT iir;i1 CITY OF CORPUS CHRISTI, TEXAS DEPARMENT OF CAPITAL PROGRAMS PAGE 1 OF 1 PROJECT BUDGET ESTIMATE SCHANEN DITCH IMPROVEMENTS PHASE 2 Project No. E11073 FUNDS AVAILABLE: Storm Water CIP $3,458,639.00 FUNDS REQUIRED: Construction (Saenz Brothers Construction) 678,276.00 Contingency (10%) 67,827.60 Construction Inspection (estimate) 35,000.00 Design Fees: Engineering (Freese and Nichols) 72,978.00 Engineering (CAPNOR USA) 9,466.46 Construction Materials Testing (Rock) 4,724.00 Reimbursements: Contract Administration (Capital Programs/Capital Budget/Finance) 14,526.00 Engineering Services (Project Mgt/Constr Mgt/Traffic Mgt) 32,642.00 Misc. (Printing, Advertising, etc.) 5,000.00 TOTAL $920,440.06 * ESTIMATED PROJECT BUDGET BALANCE $2,538,198.94 * Remaining project budget to be used for future project phases of Schanen Ditch Improvements Orginal contract awarded July 21, 2011 Corpus Chr sti Capital Programs Schanen Ditch Improvements Phase 2 Council Presentation September 30, 2014 Project Scope ALI*A11) Corpus Chr sti Capital Programs Base Bid includes: • excavation and grading to restore damaged area of side slopes and also provide slope protection • Concrete work on culvert/ outfalls • Other miscellaneous items Project Schedule Corpus Chr sti Capital Programs 2011 2012 2013 2014 2015 May Jun Jul Aug Sep Oct Nov DHJan Feb Mai Apr M4un Jul AugSep Oct NovDecJan FebMarApr MalJun Jul AugSep Oct Nov DecJan FebMarAprMayJun NMIlk Design Mrw J Project Estimate: 140 Calendar Days 5 Months Jul AugSep Oct NovDecJan Bid Feb Construction Project Budget Corpus Chr sti Capital Programs FUNDS AVAILABLE: Storm Water CIP $3,458,639.00 FUNDS REQUIRED: Construction (Saenz Brothers Construction) 678,276.00 Contingency (10%) 67,827.60 Construction Inspection (estimate) 35,000.00 Design Fees: Engineering (Freese and Nichols) 72,978.00 Engineering (CAPNOR USA) 9,466.46 Construction Materials Testing (Rock) 4,724.00 Reimbursements 52,168.00 TOTAL $920,440.06 * ESTIMATED PROJECT BUDGET BALANCE $2,538,198.94 * Remaining project budget to be used for future project phases of Schanen Ditch Improvements Original contract awarded July 21, 2011 AGENDA MEMORANDUM Future Item for the City Council Meeting of September 30, 2014 Action Item for the City Council Meeting of October 14, 2014 DATE: TO: September 18, 2012 Ronald L. Olson, City Manager FROM: Mike Culbertson (361) 882-7448 mculbertson@ccredc.com Type A Grant for Accion Texas Loan Buy Down Program for Fiscal Year 2014-2015 CAPTION: Resolution approving the renewal of a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ("Accion") to provide grant amount up to $250,000 for the interest buy down and grant programs for small businesses. PURPOSE: Approve the renewal of a Type A Grant for Accion Texas Loan Buy Down Program for Fiscal Year 2014-2015 BACKGROUND AND FINDINGS: Accion Texas Inc. supports small and start-up companies with a loan interest buy -down program when traditional financing is not available. Type A has provided funding since 2004. Accion has assisted 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 assisting small businesses the City is increasing the economic development and growing future jobs. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and assisting small businesses thrive in Corpus Christi. EMERGENCY/NON-EMERGENCY: NON -EMERGENCY DEPARTMENTAL CLEARANCES: FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 250,000 250,000 Encumbered / Expended Amount This item 250,000 250,000 BALANCE 0 0 Fund: Type A Fund 1140 Comments: RECOMMENDATION: Staff recommends that the City Council authorize the one year renewal of this Type A agreement LIST OF SUPPORTING DOCUMENTS: Certification of Funds Small Business Incentive Agreement Accion Page 1 of 2 RESOLUTION Resolution approving the renewal of a Small Business Incentives Agreement between the Corpus Christi Business and Job Development Corporation and Accion Texas, Inc. ("Accion") to provide grant amount up to $250,000 for the interest buy down and grant programs for small businesses. 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 Accion for interest buy down and grant programs for small businesses within the City will best satisfy this goal; WHEREAS, City Council deems that it is the best interest of the City and citizens to approve the one year renewal of the business incentives agreement for interest buy down and grant programs for small businesses between the Type A Corporation and Accion; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the renewal of the business incentives agreement for the creation and retention of jobs between the Type A Corporation and Accion that provides for interest buy down and grant programs for small businesses within the City of Corpus Christi, which is attached to this resolution as Exhibit A, is approved. This resolution takes effect upon City Council approval on this the day of , 2014. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Resolution - Accion Nelda Martinez Mayor APPROVED: day of , 2014. Corpus Christi, Texas of , 2014 The above resolution was passed by the following vote: Nelda Martinez Kelley Allen Rudy Garza Jr. Priscilla G. Leal David Loeb Chad Magill Colleen McIntyre Lillian Riojas Mark Scott Resolution - Accion Page2of2 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), now codified as Subtitle C1, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), 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 ("Type A Guidelines"), which the City Council incorporated into the City of Corpus Christi Economic Development Incentive Policies 2009-2011 on November 17, 2009; WHEREAS, Section 501.073 of The Act requires the City Council to approve all programs and expenditures of the Corporation; 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; 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. Page 1 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and ACCI6N 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, 2012, through July 31, 2013. 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" is 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 November 9, 2010. 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, 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. 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. i. ACCI6N 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. ACCI6N 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 Page 2 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx Interest Buy -Down Program as follows: i. ACCI6N 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. iii. ACCI6N Texas shall review the request for a loan from the Business. iv. Upon ACCION Texas approval of a loan, and prior to the closing of the loan, ACCI6N 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 ACCI6N 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. 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 are $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. 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. d. Businesses assisted through this program must be: i. A start-up or existing small business that is unable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan through a bank or credit union, in which case ACCI6N Texas can Page 3 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx loan the remaining amount with the buy down interest rate program in conjunction with the bank\credit union. ii. An existing small business that needs assistance to expand. iii. Any business assisted under the provisions of paragraphs i or ii of this subsection, must be: A. Located in or locating in Corpus Christi city limits. B. Current on payment of all sales taxes. C. Current on payment of all ad valorem taxes in the City of Corpus Christi. e. The following projects are ineligible for this program: i. Refinancing of existing loans or debt ii. Businesses located outside the Corpus Christi city limits iii. Home-based businesses located outside the Corpus Christi city limits iv. Loans to existing businesses which are not planning on expanding v. Business retention. f. ACCI6N Texas may use up to $200,000 to assist start-up and existing small businesses that have little or no access to traditional credit, and up to $150,000 to existing small businesses that wish to expand. g. ACCI6N Texas shall provide the Corporation with quarterly reports as provided in Attachment "B" to identify the loans made, name and address of the business receiving the loan, jobs created under the Interest Buy Down Program, and other reports as requested by the Corporation. h. ACCI6N Texas shall provide funds for operations and loan capital to implement and sustain the program. i. ACCI6N Texas shall develop loan underwriting criteria and payment terms and conditions for its loan program and provide to the Corporation. j. At the termination of this agreement and after repayment or other conclusion of all loans assisted by Interest Buy Down Program, 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: Page 4 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx 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. v. Working capital grants to holders of existing loans with ACCI6N Texas. If the loans that have paid routinely on time for a period of 24 months, the maximum grant amount may not exceed $1,000. If the loans have been paid routinely on time for a period of 12 months on time payments, the maximum grant amount may not exceed $500 grant. b. The loans assisted with the program must be within the range of $500 to $25,000. c. This program must result in the creation of one permanent full-time job per every related loan of at least $50,000 assisted through the Interest Buy Down Program. ACCION Texas shall ensure that the loans will result in the creation of one new full-time permanent job in the city of Corpus Christi. d. Businesses assisted through this program must be: i. A start-up or existing small business that is unable to obtain a loan from a traditional financial institution or unable to qualify for the total needed for a business loan through a bank or credit union, in which case 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 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. Current on payment of all sales taxes. C. Current on payment of all ad valorem taxes in the City of Corpus Christi. e. The following projects are ineligible for this program: Page 5 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx i. Businesses located outside the Corpus Christi city limits ii. Home-based businesses located outside the Corpus Christi city limits iii. Grants to existing businesses which are not planning on expanding f. ACCION Texas shall provide the Corporation with quarterly reports as provided in Attachment "B" to identify the grants made, name and address of the business receiving the grant, jobs created under the related Interest Buy Down Program, and other reports as requested by the Corporation. g. ACCION Texas shall provide funds to implement and sustain the program. h. ACCI6N 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, ACCI6N 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 at least as high as the median wage of the occupation in the Corpus Christi MSA as determined by Texas Workforce Commission's Texas Industry Profiles report. b. A "job" is defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. 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. 7. Buy Local Provision. a. ACCI6N Texas agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. Page 6 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx 8. Local Offices. Two staff persons of ACCI6N Texas offices shall be located in Corporation designated offices or a mutually agreeable location. 9. Representation on ACCI6N Texas governing board. ACCI6N Texas agrees to appoint a person designated by the Corporation as a member of ACCI6N Texas governing board. 10. 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. ACCI6N 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 Act 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 ACCI6N Texas. g. ACCI6N Texas does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, ACCION Texas is convicted of a violation under §U.S.C. Section 1324a(f), ACCI6N Texas shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not later than the 120th day after the date ACCI6N Texas has been notified of the violation. 11. Compliance with Laws. ACCION Texas shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 12. Non -Discrimination. ACCI6N 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. 13. 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 Page 7 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx Corporation or ACCI6N Texas are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 14. Assignment. ACCI6N Texas may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 15. 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. 16. 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 ACCI6N 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 a ainst ACCION Texas or any attachment or other levy against the property of ACCION Texas with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. ACCION Texas makes an assignment for the benefit of creditors. e. ACCI6N Texas files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by ACCI6N Texas become delinquent, and ACCION 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. 17. 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 ACCI6N Page 8 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx 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. 18. 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 ACCI6N 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. ACCI6N Texas shall immediately repay all funds paid by Corporation under this Agreement. b. ACCI6N 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. 19. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of ACCI6N Texas' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time ACCI6N Texas is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 20. ACCI6N Texas specifically agrees that Corporation shall only be liable to ACCION Texas for the actual amount of the money grants to be conveyed to ACCI6N 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, 2012, through July 31, 2013. 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 Page 9 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx 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. 21. 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: 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. 22. 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. 23. 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. 24. 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 Page 10 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. 25. 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. 26. 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. 27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 28. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and ACCION Texas. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 29. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to the Loan Loss Reserve Program and the Interest Buy Down Program shall survi - the termination of this agreement. Corpus Christi Bu By: Date: ness Job Development Corporation President ac.7-_ .202 ..2e), a_ Page 11 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx S Oa( AU 1 Moue Cill1NCIL...,..., )7' Attest: By: Armando Chapa Assistant Secretary ACCION Texas, Inc. By: Date: President and Chief Executive Officer THE STATE OF TEXAS COUNTY OF NUECES § § § This instrument was acknowledged before me on 19 , 2012, by Janie Barrera, President and Chief Executive Officer for AC Ib Texas, Inc., a Texas non-profit corporation, on behalf of the corporation. i a 61. NA4 Notary Public State of Texas „11:7 4 ALICE G. GOMEZ OMEZ z Notary Public, State of Texas My Commission Expires August 11, 2015 Page 12 of 12 SMALL BUSINESS INCENTIVE AGREEMENT - ACCION 06 27 2012.docx AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of September 30, 2014 Second Reading Ordinance for the City Council Meeting of October 14, 2014 DATE: TO: September 16, 2014 Ronald L. Olson, City Manager FROM: Yasmine B. Chapman, Director of Human Resources YasmineC@cctexas.com 361-826-3315 Amendment to the Personnel Ordinance to implement a one and half percent cost of living increase and add two new pay grades CAPTION: Ordinance amending the Corpus Christi Code of Ordinances, Chapter 39, Personnel, Article 111 Employee Classification and Compensation System to revise Section 39-303, adjusting the pay grades and steps to implement a one and a half percent (1.5%) cost of living increase as approved in the Fiscal Year 2015 Budget and to add new pay grades 401 and 402; repealing conflicting ordinances and rules; providing for effective date and providing for severance. PURPOSE: Amending Chapter 39, Personnel, Article 111 Employee Classification and Compensation System to adjust the pay grades and steps in order to implement a 1.5% cost of living increase as well as to add new pay grades 401 and 402. BACKGROUND AND FINDINGS: As approved in the Fiscal Year 2015 Budget pay grades and steps are modified to incorporate the one and a half percent (1.5%) cost of living adjustment. Also a new pay plan 400 with grades and steps for Police Commanders and Assistant Police Chiefs is created to assure the adjustments for a 5% separation between the highest base pay for Police Captain and the Police Commander as well as a 5% separation between the Police Commander and the Assistant Police Chief. ALTERNATIVES: None. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: Item conforms to all City policies. EMERGENCY / NON -EMERGENCY: Non -Emergency. DEPARTMENTAL CLEARANCES: Office of Management and Budget Department of Financial Service Legal Department FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014 - 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $1,571,605 $1,571,605 BALANCE $1,571,605 $1,571,605 Fund(s): General, Street, Redlight, Water, Gas Wastewater, Stormwater, Airport, Development Services, Marina, Visitors, LEPC, Stores, Fleet Facilities, MIS, Capital Programs, Risk Administration, Health Administration, and Crime Control Comments: RECOMMENDATION: Staff recommends approval of the ordinance amendment to adjust the pay grades and steps; implementing the 1.5% cost of living increase, as well as to add new pay grades; 401 and 402. LIST OF SUPPORTING DOCUMENTS: Redline Ordinance Ordinance; clean copy Ordinance amending the Corpus Christi Code of Ordinances, Chapter 39, Personnel, Article III Employee Classification and Compensation System to revise Section 39-303, adjusting the pay grades and steps to implement a one and a half percent (1.5%) cost of living increase as approved in the Fiscal Year 2015 Budget and to add new pay grades 401 and 402; repealing conflicting ordinances and rules; 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: Sec. 39-303. Standard classifications, pay grades, and ranges. (a) (b) Grade 101 102 103 Classifications. The classifications of employees of the city, as set forth in this section, will include: Pay Plan 100 Non -Exempt (FLSA Overtime Eligible); Pay Plan 200 Exempt (FLSA Overtime Ineligible); Pay Plan 300 Executives (FLSA Overtime Ineligible); and Pay Plan 400 Police Command Staff Pay Plan 100. Pay Plan 100 will include positions that are designated as non-exempt under the FLSA. The city manager will periodically review positions and take corrective action, as required, to assure they are properly classified under the FLSA. The pay grades and ranges for positions in Pay Plan 100 are as follows: Pay Plan 100 FLSA Overtime Eligible Minimum $17,124 17,980 18,879 Midpoint $22,467 23,591 24,770 Maximum $28,058 29,461 30,934 104 19,822 26,008 32,481 105 20,813 27,309 34,105 106 21,853 28,674 35,810 107 22,947 30,108 37,601 108 24,094 31,613 39,481 109 25,299 33,194 41,454 110 26,564 34854 43,528 111 27,892 36,597 45,704 112 29,287 38,426 47,989 113 30,750 40,347 50,388 114 32,288 42,365 52,908 115 33,903 44,483 55,554 116 35,598 46,707 58,331 117 37,377 49,043 61,247 118 39,247 51,495 64,310 119 41,209 54,070 67,526 120 43,269 56,773 70,902 121 45,432 59,612 74,447 122 47,704 62,592 78,169 123 50,090 65,722 82,078 124 52,594 69,008 86,181 125 55,224 72,459 90,491 (c) Pay Plan 200. Pay Plan 200 will include all positions that may be designated as exempt from overtime under the FLSA. The pay grades and ranges for positions in Pay Plan 200 are as follows: Pay Plan 200 FLSA Overtime Ineligible Grade Minimum Midpoint Maximum 201 $32,181 $42,224 $52,732 202 33,790 44,335 55,368 203 35,479 46,552 58,137 204 37,253 48,879 61,044 205 39,116 51,324 64,096 206 41,072 53,890 67,301 207 43,125 56,584 70,666 208 45,281 59,413 74,198 209 47,545 62,383 77,908 210 49,923 65,503 81,804 211 52,419 68,778 85,895 212 55,039 72,217 90,189 213 57,792 75,829 94,700 214 60,682 79,620 99,434 215 63,716 83,600 104,406 216 66,902 87,780 109,625 217 70,245 92,169 115,107 218 73,758 96,777 120,861 219 77,446 101,616 126,904 220 81,318 106,697 221 85,384 112,032 (d) 133,250 139,912 Pay Plan 300. Pay Plan 300 will include positions at the highest level of decision- making and responsibility. The pay grades and ranges for positions in Pay Plan 300 are as follows: Pay Plan 300 Executives FLSA Overtime Ineligible Midpoint $85,666 89,949 94,446 99,170 104,128 109,333 Maximum $106,985 112,334 117,951 123,849 130,042 136,542 Minimu 307 $65,320 308 68,554 309 71,982 310 75,581 311 79,361 312 83,327 Pay Plan 300 Executives FLSA Overtime Ineligible Midpoint $85,666 89,949 94,446 99,170 104,128 109,333 Maximum $106,985 112,334 117,951 123,849 130,042 136,542 313 87,495 114,801 143,371 314 91,870 120,541 150,539 315 96,463 126,568 316 101,286 317 132,896 106,350 139,540 158,066 165,969 174,266 318 111,667 146,518 192,981 319 117,251 153,843 192,129 320 123,113 161,535 322 CITY MANAGER No range (e) J 1 J 201,735 H Pay Plan 400. Pay Plan 400 will include Police Command Staff, Grade 400, steps will assure at least a five percent (5%) differential between the highest paid Police Captain and the Police Commander and a five percent (5%) differential between the Police Commander and Assistant Police Chief. 1 Title Grade Step 1 Police Commander 401 $ 98,094 Assistant Police Chief 402 $102,982 When there is not a 5% differential between the highest paid Police Captain and Police Commander; Police Commander annual salary will be increased to assure at least a five percent (5%) differential between the highest paid Police Captain and Police Commanders. Annual salary for the Assistant Police Chief will be increased to assure at least a five percent (5%) differential between the highest paid Police Commander and Assistant Police Chiefs. (Ord. No. 24968, § 1, 7-23-2002; Ord. No. 25395, § 1, 7-22-2003; Ord. No. 025849, § 1, 7-20-2004; Ord. No. 026367, § 2, 7-26-2005; Ord. No. 026899, § 2, 7-25-2006; Ord. No. 027353, § 1, 7-24-2007; Ord. No. 027778, § 3, 7-22-2008; Ord. No. 027819, § 1, 8-26-2008; Ord. No. 028163, § 1, 5-12-2009; Ord. No. 028254, § 1, 7-28-2009; Ord. No. 029157, § 1, 7-26-2011; Ord. No. 029239, § 1, 10-11-2011; Ord. No. 029590, § 1, 8-21-2012; Ord. No. 029918, § 1, 7-30-2013) Section 2. That all ordinances, rules, or parts of ordinances or rules in conflict with this ordinance are hereby expressly repealed. Section 3. This ordinance is effective upon final adoption by the City Council. The new classifications, pay grades and ranges will become effective upon passage of this ordinance and the FY 2014- 2015 budget. 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. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor Ordinance amending the Corpus Christi Code of Ordinances, Chapter 39, Personnel, Article III Employee Classification and Compensation System to revise Section 39-303, adjusting the pay grades and steps to implement a one and a half percent (1.5%) cost of living increase as approved in the Fiscal Year 2015 Budget and to add new pay grades 401 and 402; repealing conflicting ordinances and rules; 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: Sec. 39-303. Standard classifications, pay grades, and ranges. (a) (b) Classifications. The classifications of employees of the city, as set forth in this section, will include: Pay Plan 100 Non -Exempt (FLSA Overtime Eligible); Pay Plan 200 Exempt (FLSA Overtime Ineligible); ate; Pay Plan 300 Executives (FLSA Overtime Ineligible); and Pay Plan 400 Police Command Staff, PayPlan 100. Pay Plan 100 will include positions that are designated as non-exempt under the FLSA. The city manager will periodically review positions and take corrective action, as required, to assure they are properly classified under the FLSA. The pay grades and ranges for positions in Pay Plan 100 are as follows: Pay Plan 100 FLSA Overtime Eligible Grade Minimum Midpoint Maximum 101 $17,124$4 71 $22,467$' $28,058$27,6'I'I 102 17,98017,71 1I 103 18,87918,600 23,59123,212 29,46129,026 24, 77021/104 30,93430,477 104 19,82219,529 26,008 25,621 32,48132,001 105 20,81320,505 27,30926,905 34,105334 106 21,85321,530 28,6740 35,81035,280 107 22,94722,608 30,10829,663 37 60137,0/5 108 24,09423,738 31,61331,146 39,4817 109 25,29924,925 33,19432,703 41 45440,842 110 26,56426,171 3485434,339 43,52812,885 111 27,89227,180 36,59736,056 45 70445,029 112 29,28728,854 38,42637,858 47 98947,279 113 30,75030,296 40,34739,751 50 38849,611 114 32,28831,811 42 365/11,739 52,90852,126 115 33,90333,402 44 483/13,826 55,55454,733 116 35,59835,072 46 70746,017 58,33159 117 37,37736,825 49 04348,318 61 24760,313 118 39,24738,667 51,49550,734 64,31063,360 119 41 20940,600 54,07053,271 67,5266828 120 43,269/12,630 56,77355,934 70,90269,851 121 45 43241,761 59,61258,731 74 44773,317 122 47,704/16,999 62,59261,667 78,16977,011 123 50,090/19,350 65 72284,7-54 82,07880,865 124 52,59451,817 69,00867,988 86,18184,908 72,45971,388 90,49189-1-54 125 55,22454,408 (c) Pay Plan 200. Pay Plan 200 will include all positions that may be designated as exempt from overtime under the FLSA. The pay grades and ranges for positions in Pay Plan 200 are as follows: Grade Minimum L Pay Plan 200 FLSA Overtime Ineligible Midpoint Maximum 201 $32,181$31-,705 202 33,79033,291 $42,224$41,600 $52,732$513 44 33543,680 55,36854,550 203 35,4793 ,955 46 55245,861 58,13757,278 204 37,25336,702 48 87948,157 61,04460,111 205 39,11638,538 51,32450,565 64 09663,1/19 206 41 07240,165 53,89053,093 67,30166,306 207 43 125/12/188 56,5845548 70,66669,622 208 45 28141,612 59,41358,535 74,19873,102 209 47 545/16,813 62 38361/162 77,90858 210 49 923/19,185 65,50364,535 81,80480,595 211 52,41951,611 68,77867,762 85,895845 212 55,03951,226 72,21771,150 90,18988,857 213 57,79256,938 75 82974,708 94,70093,300 214 60,68259,785 79,62078,443 99,43497,965 215 63,71662,774 83,60082,365 104,406102,863 216 66,90265,913 87,78086,483 109,625108,005 217 70,24569,207 92,16990,807 115,107113,105 218 73,75872,668 96,77795,347 120,861119,075 219 77,44676,301 101,616100,111 220 81,31880,116 106,697105,120 221 85,38481,122 112,032110,376 126,904125,029 133,250131,280 139,912137,811 The assistant fire chief and police commander will be moved within their respective battalion chief and police captain. (d) Pay Plan 300. Pay Plan 300 will include positions at the highest level of decision- making and responsibility. The pay grades and ranges for positions in Pay Plan 300 are as follows: Pay Plan 300 Executives FLSA Overtime Ineligible Grade ■ Minimum Midpoint Maximum 307 1$65,320$64,355 $85,666$84400 308 68,55467,511 89,94988,620 $106,985$105,101 112,334110,674 309 71, 9828 94,44693,051 117,951116,208 310 75,58171,164 311 79,36178,188 99,17097,704 123,849122,019 104,128102,589 130,042128,120 312 83,32782,096 Step 1 109,333107,718 136,54213/1,525 $ 98,094 Assistant Police Chief 402 $102,982 313 87,49586,202 114,801113,101 143,371111,251 314 91,87090,512 120,541118,759 150,539118,31 1 315 96,46395,038 126,568124,697 158,066155,729 316 101,28699,789 132,896130,932 165,969163,516 317 106,350104,778 139 540137,178 174,266171,691 J 318 111,667110,017 146 ,518144,353 182,981180,277 319 117,251115,518 153,843151,570 192,129189,290 320 123 113121,291 161,535159,118 201,735198,751 322 CITY MANAGER No range (e) - Pay Plan 400. Pay Plan 400 will include Police Command Staff, Grade 400, steps will assure at least a five percent (5%) differential between the highest paid Police Captain and the Police Commander and a five percent (5%) differential between the Police Commander and Assistant Police Chief. Title Grade Step 1 Police Commander 401 $ 98,094 Assistant Police Chief 402 $102,982 When there is not a 5% differential between the highest paid Police Captain and Police Commander; Police Commander annual salary will be increased to assure at least a five percent (5%) differential between the highest paid Police Captain and Police Commanders. Annual salary for the Assistant Police Chief will be increased to assure at least a five percent (5%) differential between the highest paid Police Commander and Assistant Police Chiefs. (Ord. No. 24968, § 1, 7-23-2002; Ord. No. 25395, § 1, 7-22-2003; Ord. No. 025849, § 1, 7-20-2004; Ord. No. 026367, § 2, 7-26-2005; Ord. No. 026899, § 2, 7-25-2006; Ord. No. 027353, § 1, 7-24-2007; Ord. No. 027778, § 3, 7-22-2008; Ord. No. 027819, § 1, 8-26-2008; Ord. No. 028163, § 1, 5-12-2009; Ord. No. 028254, § 1, 7-28-2009; Ord. No. 029157, § 1, 7-26-2011; Ord. No. 029239, § 1, 10-11-2011; Ord. No. 029590, § 1, 8-21-2012; Ord. No. 029918, § 1, 7-30-2013) Section 2. That all ordinances, rules, or parts of ordinances or rules in conflict with this ordinance are hereby expressly repealed. Section 3. This ordinance is effective upon final adoption by the City Council. The new classifications, pay grades and ranges will become effective upon passage of this ordinance and the FY 2014- 2015 budget. 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. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of September 23, 2014 Second Reading Ordinance for the City Council Meeting of September 30, 2014 DATE: September 11, 2014 TO: Ronald L. Olson, City Manager FROM: Annette Rodriguez, Director of Public Health annetter@cctexas.com 361-826-7203 Program Income FY 14-15 Appropriation of Funds CAPTION: Ordinance appropriating $459,000 from the estimated program income revenue in the No. 1066 Health Grants Fund as State fiscal year 2014-2015 program income to fund laboratory and public health services for the period of September 1, 2014 through August 31, 2015. PURPOSE: The Program Income Funding allows the Health District to supplement local funds for public health services which help with supplies, minor equipment, contractual services, training and computer equipment. BACKGROUND AND FINDINGS: The Corpus Christi-Nueces County Public Health District receives funding from the Department of State Health Services (DSHS) for various public health services. As a result of this support, fees that are charged must be prorated to determine the percentage of revenues that were generated using State/Federal funds. The State/Federal supported revenues are deemed Program Income (PI). PI earned during the State fiscal year (September 1- August 31) must be spent during that year or returned to the State. PI earned is to be used to supplement local funds for public health services. Staff reviews actual earnings and projected earnings to recommend an annual appropriation to cover expenditures. Planned expenditures for FY 14-15 include supplies, minor equipment, contractual services, training and computer equipment. ALTERNATIVES: Unused Program Income funds must be returned to the State. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: Council approval required for appropriation of program income funds. EMERGENCY/NON-EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Corpus Christi-Nueces County Public Health District Legal Department Finance - Federal Grants and Office of Management and Budget. FINANCIAL IMPACT: x Operating x Revenue o Capital o Not applicable Fiscal Year: 2013- 2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $459,000 $459,000 BALANCE $459,000 $459,000 und(s): Program Income Comments: No fiscal impact to General Fund. RECOMMENDATION: Staff recommends approval of this agenda item. LIST OF SUPPORTING DOCUMENTS: Ordinance Public Health District O 0' vla O O O N 69 O O O N GO O O O M O V) D D y 9 O O O hl 69 O O O N 69 0 0 0 vi 69 69 O O O O 69 69 O O O O CO 69 0 O O O 6I 69 VD v0 V CS 1 N b an Q< ce4 M d b O „00.-< v) v) M N „ „ O tD 0 0 0 0 •-' <n O V) N O v) VD O •-+ 0 CO V h N 00 V d' O O N „ 09 O •-+ O V)„ N O O v.. N Cn N r- <n N O<'+ .- cn Ch b 91 Vl N CO 1O N d' N O O O. -, 00 VI N d' N O \D O V Cn N N en O O VD ON d. N en M O O 0 4474 VI cQ O cry O h b 00 N W 99 e ica� Clinical 830202L co d V N 480 O 00O N d0- N O\ 5,285 1,218 1.498 Cl a\ O) f� Q, 00 N O •- N In N N Ql N M O l0 7 N N CO .N. NON O N N CD NO to 49 kD N0 Q9 b 0 d en 99 CA O 24,300 . „. CT O in h V) N 360i a j A a v cc o i GO 1. vt h N dam' V) ten 'O vni N00 O N N „ 0' O „ ON v) Immunizatio n 830214L N v) VD bOw '0 Ch O T N N N CO CA O cn ,I N en O O0%01 ON N O M h nate Vaccine 830201L CO N O 't V V 00 .+ N N O kr) en V b CO N M Description Salaries &Wages Retirement Group Insurance Benefits far al U •V S J 0 0o 'O D 0 o U O v c C 4D0 0`3 N w y U y a o 02 Ucd 0 A 7v• o W O wD , Minor tools & Equipment <$1000 Minor tools & Equipment <$500 Minor Computer Equipment Minor Office Equipment 7:L.y z 4.) D 0 Maintenance & Repairs Professional Services Temporary Services Vehicle Repairs Postage & Express charges yOo A. x, Mileage Reimbursement Non -Capital Lease Payments Telephone/Tele&aph Service Building Maintenance & Svc • Equipment Maintenance Memberships Licenses & Dues Training Tuition Reimbursement 0 !0. Hr, Printing Advertising & PR Auto Liability Insurance Miscellaneous Charges N id. O y A to Improvements other than Bldg Other equipment>$1000 } IAccount Number O O D O O „ 0 0 c0 y 41 kr) 'n O N en 0 O N v) 111 O 0 O N O d' 0 O N Cl V) 141 O V1 0 O O b 0 O N V) 141 O N 0 O N 111 O Ch 0 O N 0 O\ 0 O N v) 0 O O N v) 0 .. O N 99 0 01 <rn O N 91 0 0 N to 99 0 O O 0 tot Vl OONOES 1 ninnsc D 7 D 7n cn n O VD 0 en 99 O 1 0 cn v) O CO — 0 cn 91 O O N 0 cn 49 O cn N 0 cn 91 O N 0 cn 91 O v) N 0 91 O v) VD en Cn 0 M cn vl N 0 cn V) O O v) 0 cn 91 0 O 0 v) 0 ' N 0 V h 0 O N d 91 in Cr N. CO d' 0 cn O O V) 0 7 0 O v) Vl <n 0 N O O v) O 0' vla O O O N 69 O O O N GO O O O M O V) D D y 9 O O O hl 69 O O O N 69 0 0 0 vi 69 69 O O O O 69 69 O O O O CO 69 0 O O O 6I 69 Page 1 of 2 Ordinance appropriating $459,000 from the estimated program income revenue in the No. 1066 Health Grants Fund as State fiscal year 2014-2015 program income to fund laboratory and public health services for the period of September 1, 2014 through August 31, 2015. Be it ordained by the City Council of the City of Corpus Christi, Texas: SECTION 1. That $459,000 from estimated program income revenue is appropriated in the No. 1066 Health Grants Fund as State fiscal year 2014-2015 program income to fund laboratory and public health services for the period of September 1, 2014 through August 31, 2015. Page 2 of 2 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the day of , 2014. ATTEST: Rebecca Huerta Nelda Martinez City Secretary Mayor AGENDA MEMORANDUM First Reading for the City Council Meeting of September 16, 2014 Second Reading for the City Council Meeting of September 30, 2014 DATE: September 24, 2014 TO: Ronald L. Olson, City Manager FROM: Daniel M. Grimsbo, P.E., AICP, Director of Development Services danielmg@cctexas.com 361-826-3595 Southside FM 2444 Annexation CAPTION: An ordinance annexing Laureles Farm Tracts adjacent to the city limits located in Nueces County along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the proposed APEX Wind Farm; providing for a Municipal Services Plan for the annexed tracts of land; providing that the owners and inhabitants are entitled to all rights, privileges, and burdens of other citizens and property owners of the City of Corpus Christi and are subject to and bound by the City Charter, ordinances, resolutions, and rules; providing for amendment of the official maps of the City of Corpus Christi; designating area once annexed to be added to City Council District Number 5; providing for severance; and providing an effective date. PURPOSE: The purpose of the annexation is to protect an area to the south of the City for future growth, including but not limited to residential development, which has been identified as the proposed APEX Wind Farm. (See Exhibit A: Location Map) BACKGROUND AND FINDINGS: Local Government Code provides that cities with a population of more than 100,000 shall have a growth area reserved for future expansion called the Extraterritorial Jurisdiction (ETJ) which is five miles beyond the existing city limits. The City Council has expressed concern that growth in the ETJ, specifically the proposed Chapman Ranch Windfarm located on the proposed annexation area, could be detrimental to future growth in the area. The proposed annexation area is located in the City's ETJ with an area of approximately 16.34 square miles, 83 tracts of land owned by 32 owners including 16 dwellings with an estimated population of 44. Existing land uses primarily consist of farm and ranch lands. There are no existing commercial wind farms in the area. Upon annexation, the property will be designated with an initial zoning designation per the Unified Development Code 4.5.1 Newly Annexed Territory of "FR" Farm Rural District. The Corpus Christi City Council has identified the need to create consistency and unity in regulation of future land use, platting and the provisions of municipal services as it relates to our growing and changing community. The Council has expressed a strong desire to protect and defend the interests of property owners — and to effectively manage growth and development in the areas commonly recognized as part of the Corpus Christi community. The application of City zoning, building, and land development regulations to any neighboring properties that are annexed as part of this process will, over the long term, help protect property values. As required by Local Government Code Chapter 43, two public hearings were conducted August 19th and on August 26th. Also in accordance with State Law a Municipal Services Plan was explained at the public hearings. ALTERNATIVES: 1. Per state law, the City has contacted each property (See attached letter) with an invitation to consider opting out of the annexation by signing a development agreement. The agreement would allow for the continuation of existing uses on the property (except for a wind turbine not allowed by the Unified Development Code) provided that the owner does not initiate development of the property, including development of a wind farm and, that the property meets the tax exemption in state law commonly referred to as an agricultural exemption. This agreement would allow the city to extend its land use controls (zoning, building, etc.) to the subject property but would not allow or cause the City to levy property tax on the subject property. 2. Approval of a development agreement for a portion of the wind farm in the City's Extraterritorial Jurisdiction by determining the development agreement conditions that would be agreeable to the City. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: a. Pursue a policy of annexation of lands at the periphery of the City to achieve orderly growth. b. Pursue a policy of annexation adjacent to the City's growth areas in order to extend zoning ordinance control consistent with adopted land use plans. EMERGENCY / NON -EMERGENCY: Non -Emergency. DEPARTMENTAL CLEARANCES: Not applicable. FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2013-2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: All services shall be provided according to the Municipal Services Plan. Access to infrastructure by properties within the annexed areas shall be allowed in accordance with City policy, including, but not limited to the Unified Development Code. RECOMMENDATION: Approval of the Ordinance as presented. LIST OF SUPPORTING DOCUMENTS: Location Map Property Owner Letter and Development Agreement Ordinance with the Municipal Services Plan AN ORDINANCE ANNEXING LAURELES FARM TRACTS ADJACENT TO THE CITY LIMITS LOCATED ALONG AND ON BOTH SIDES OF FM 2444, AREAS SOUTH OF FM 2444 AND WEST OF COUNTY ROAD 41, COMMONLY REFERRED TO AS A PORTION OF THE CHAPMAN RANCH AND A PORTION OF THE PROPOSED APEX WIND FARM; PROVIDING FOR A MUNICIPAL SERVICES PLAN FOR THE ANNEXED TRACTS OF LAND; PROVIDING THAT THE OWNERS AND INHABITANTS ARE ENTITLED TO ALL RIGHTS, PRIVILEGES, AND BURDENS OF OTHER CITIZENS AND PROPERTY OWNERS OF THE CITY OF CORPUS CHRISTI AND ARE SUBJECT TO AND BOUND BY THE CITY CHARTER, ORDINANCES, RESOLUTIONS, AND RULES; PROVIDING FOR AMENDMENT OF THE OFFICIAL MAPS OF THE CITY OF CORPUS CHRISTI; DESIGATING AREA TO BE ADDED TO CITY COUNCIL DISTRICT NUMBER 5; PROVIDING FOR SEVERANCE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Corpus Christi desires to annex land, located south and southwest of the existing city limits and considered to be in the City's primary growth corridor; WHEREAS, on August 19th and 26th, 2014, public hearings were held by the City Council, during City Council meetings held in the Council Chambers, at City Hall, in the City of Corpus Christi, following publication of notice of the hearings in a newspaper of general circulation in the City of Corpus Christi, for the consideration of annexation proceedings and the service plan for the defined lands and territory, during which all persons interested in the annexations were allowed to appear and be heard; WHEREAS, a service plan for the area proposed to be annexed was made available for public inspection, including on the City's website on August 18, 2014 and made available for public discussion at public hearings on August 19th and August 26th, 2014; WHEREAS, it has been determined by the City Council that the territory now proposed to be annexed lies wholly within the extraterritorial jurisdiction of the City of Corpus Christi; WHEREAS, it has been determined by the City Council that the territory now proposed to be annexed abuts and is contiguous and adjacent to the City of Corpus Christi; WHEREAS, it has been determined by the City Council that the territory now proposed to be annexed constitutes lands and territories subject to annexation as provided by the City Charter of the City of Corpus Christi and the laws of the State of Texas; and WHEREAS, this annexation will leave out property where the property owner has signed a Development Agreement with the City of Corpus Christi as per Local Government Code Chapter 43; WHEREAS, it has been determined that it would be advantageous to the City and to its citizens and in the public interest to annex the lands and territory hereinafter described. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds that leaving the property owned by Nueces County outside, but completely surrounded by, the city limits of the City of Corpus Christi is in the public interest. SECTION 2. That a 10,463 acre tract of land, more or less, out of Laureles Farm Tract Survey, and located on both sides of FM 2444, to the south of FM 2444 and to the west of County Road 41, including a portion of the Chapman Ranch and proposed APEX Wind Farm Area, is annexed to, brought within the corporate limits, and made an integral part of the City of Corpus Christi. The tract is described by metes and bounds and a map in Exhibit A of the Municipal Services Plan attached to this ordinance. SECTION 3. That there is approved, as part of this annexation ordinance, a Municipal Service Plan. The Service Plan, attached to this ordinance, is incorporated into and made a part of this ordinance. The service plan provides for the same number of services and levels of service for the annexed area and to the same extent that such services are in existence in the area annexed immediately preceding the date of annexation or that are otherwise available in other parts of the city with land uses and population densities similar to those contemplated or projected in the area annexed. SECTION 4. That the owners and inhabitants of the tracts or parcels of land annexed by this ordinance are entitled to all the rights, privileges, and burdens of other citizens and property owners of the City of Corpus Christi, and are subject to and bound by the City Charter of the City of Corpus Christi, and the ordinances, resolutions, motions, laws, rules and regulations of the City of Corpus Christi and to all intents and purposes as the present owners and inhabitants of the City of Corpus Christi are subject. SECTION 5. That the official map and boundaries of the City and its extraterritorial jurisdiction, previously adopted and amended, are amended to include the territories described in this ordinance as part of the City of Corpus Christi, Texas and as required by the City's Unified Development Code section 4.1.5 Newly Annexed Territory, the area shall be designated with an initial "FR" Farm and Rural District. SECTION 6. That the City Manager or his designee is directed and authorized to perform or cause to be performed all acts necessary to correct the official map of the City and its extra territorial jurisdiction to add the territory annexed as required by law. SECTION 7. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of the ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance for it is the definite intent of this City Council that every section, paragraph, .subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 8. This ordinance goes into effect at a.m, , 2014. Exhibit A Attached to the Annexation Ordinance Municipal Services Plan for the Southside FM 2444 Area SOUTHSIDE FM 2444 AREA PROFILE Southside FM 2444 Area Information Total Land Area in Square Miles: Total Water Area in Square Miles: Total 2014 Population: Total 2014 Housing Units: 2012 Median Age 2012 Median Household Income Source: US Census/American Fact Finder and City of Corpus Christi Existing Uses Southside FM 2444 Area Agricultural / Vacant Residential Industrial Public Semi Public Right -of -Way Total Location Map Southside FM 2444 Area 16.34 0.0 44 16 35.6 $67,721 Ac res 10,433.69 20.77 3.81 4.73 196.47 10,463.00 Corpus Christi 150.58 353.46 320,231 129,254 34.4 $47,029 Percent 97.84% 0.20% 0.04% 0.05% 1.88% 100.00% r -- CITY OF CORPUS CHRISTI SOUTHSIDE FM2444 CURRENT CITY LIMITS rarof Merlon Municipal Services Plan For the Southside FM 2444 Area Development Services Department September 24, 2014 Page 2 of 17 Legal Department MUNICIPAL SERVICES PLAN FOR THE SOUTHSIDE FM 2444 AREA INTRODUCTION This Municipal Services Plan ("Plan") is made by the City of Corpus Christi, Texas pursuant to Section 43.056 of the Texas Local Government Code. This Plan relates to the annexation of approximately 16.34 square miles of land generally located south of FM 2444 and west of County Road 41. Exhibit A, attached to this Plan contains a metes and bounds description and a map of the area. This plan will be attached to the ordinance annexing the Southside FM 2444 Area. The proposed annexation of the Southside FM 2444 Area will follow all of the requirements contained in the Texas Local Government Code Chapter 43 required for annexation, including but not limited to, requirements for public notice and public hearings. In addition, the FM 2444 Area proposed for annexation satisfies Chapter 43, Section 43.052.h, that exempts an area proposed for annexation from the requirement that an area to be annexed must first be included in the City's Annexation Plan for three years prior to adoption of an annexation ordinance. Section h. specifies that if an area contains less than 100 residential units on separate tracts, then the area to be annexed is "exempt" from the plan requirement. Based on a land use analysis and appraisal district records for the area there are 16 dwellings on separate tracts. Therefore, the area proposed for annexation is "exempt" from the annexation plan requirement. EFFECTIVE TERM This Plan shall be in effect for a ten-year period commencing on the effective date of the annexation, unless otherwise stated in this Plan. Renewal of the Plan shall be at the option of the City. A renewal of this Plan may be exercised by the City Council provided the renewal is adopted by ordinance and specifically renews this Plan for a stated period of time. INTENT The City Council of the City of Corpus Christi, Texas, finds and determines that this Plan will not provide any fewer services or a lower level of services in the annexation area than were in existence in the annexation area at the time immediately preceding the annexation process. The service plan will provide the annexed area with a level of service, infrastructure, and infrastructure maintenance that is comparable to the level of service, infrastructure, and infrastructure maintenance available in other parts of the municipality with topography, land use, and population density similar to those reasonably contemplated or projected in the area. The City reserves the right guaranteed to it by the Texas Local Government Code to amend this Plan if the City Council determines that changed conditions or subsequent occurrences or any other legally sufficient circumstances exist under the Local Government Code or other Texas laws to make this Plan unworkable or obsolete or unlawful. Municipal Services Plan For the Southside FM 2444 Area Page 3 of 17 Development Services Department September 24, 2014 Legal Department SERVICE ELEMENTS 1. General Municipal Services. The subject properties are located within the City's extraterritorial jurisdiction and are more particularly described in the Ordinance to which this service plan is attached. Pursuant to this Plan, the following services shall be provided immediately from the effective date of the annexation: a. Police protection as follows: Routine patrols of areas, radio response to calls for police service and all other police services now being offered to the citizens of the City at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density. b. Fire Protection Services as follows: Fire protection by the present personnel and equipment of the City fire fighting force with the limitations of water available at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density. c. Emergency Medical Services as follows: Radio response for Emergency Medical Services with the present personnel and equipment at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density. d. Solid waste collection services as follows: Solid waste collection and services as now being offered to the citizens of the City at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density. e. Operation and Maintenance of Water and Wastewater Facilities Water and wastewater service will be provided in accordance with the Corpus Christi Code of Ordinances, Utility Department Policies and engineering standards at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density and provided the service is not within the certificated service area of another utility through existing facilities located within or adjacent to the area. Any and all water or wastewater facilities owned or maintained by the City of Corpus Christi, Texas, at the time of the proposed annexation shall continue to be maintained by the City of Corpus Christi, Texas. Any and all water or wastewater facilities that may be the property of another municipality or other entity shall not be maintained by the City of Corpus Christi unless the facilities are dedicated to and accepted by the City of Corpus Christi. On-site sewage facilities may be allowed contingent upon the property owner meeting all city, county, state and federal requirements. Municipal Services Plan For the Southside FM 2444 Area Development Services Department September 24, 2014 Page 4 of 17 Legal Department f. Operation and Maintenance of Roads and Streets, including Street Lighting The City will maintain public streets over which the City has jurisdiction at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density. Any and all roads, streets or alleyways which are dedicated to and accepted by the City of Corpus Christi, Texas, or which are owned by the City of Corpus Christi, Texas, shall be maintained to the same degree and extent that other roads, streets and alleyways are maintained in the City. Any and all lighting of roads, streets and alleyways which may be positioned in a right-of-way, roadway or utility company easement shall be maintained by the applicable utility company servicing the City of Corpus Christi, Texas, pursuant to the rules, regulations and fees of the utility. g. Street Department services include: • Emergency pavement repair; • Maintenance of public streets; and • Traffic Engineering. Following annexation, public streets for which the city has jurisdiction will be included in the City's preventive maintenance program. Preventive maintenance projects are prioritized on a Citywide basis and scheduled based on a variety of factors, including pavement roughness, rideability, age, traffic volume, functional class, and available funding. Any necessary rehabilitation or reconstruction will be considered on a citywide priority basis. The Traffic Engineering Division of the Street Department will also provide regulatory signage services in the annexation area. All regulatory signs and signals are installed when warranted following an engineering study. All roadways are re -striped and remarked and signage replaced as needed. • Immediately following annexation, all properties will be subject to the City's monthly street fee program. The street fee is a monthly fee which is collected from Corpus Christi residents and business owners and which appears on their monthly utility bills. Operation and Maintenance of Parks, Playgrounds and Swimming Pools Any park that may be under the responsibility of the County will be maintained by the City only upon dedication of the park by the County to the City and acceptance of the park by the City Council. At this time there are no public recreational facilities in the annexation area including parks, playgrounds, and swimming pools. h. Operation and Maintenance of any other Publicly -Owned Facility, Building, or Service. At this time there are no such other publicly owned facilities. Should the City acquire any other facilities and buildings within the annexation area, an appropriate City department will provide maintenance services at the same level of service now being provided to other areas of the City of Corpus Christi, Texas, with similar topography, land use and population density. i. Other Services. All other City Departments with jurisdiction in the area will provide services according to City policy and procedure. Municipal Services Plan For the Southside FM 2444 Area Page 5 of 17 Development Services Department September 24, 2014 Legal Department 2. CAPITAL IMPROVEMENTS PROGRAM The City will initiate the construction of capital improvements for providing municipal services for the annexation area as necessary. Each component of the Capital Improvement Program is subject to the City providing the related service directly. In the event that the related service is provided through a contract service provider, the capital improvement may not be constructed or acquired by the City but may be provided by the contract provider. The City may also lease buildings in lieu of construction of any necessary buildings. a. Police Protection. No capital improvements are necessary at this time to provide police services. b. Fire Protection. No capital improvements are necessary at this time to provide fire services. c. Emergency Medical Service. EMS services. No capital improvements are necessary at this time to provide d. Solid Waste Collection. No capital improvements are necessary at this time to provide solid waste collection services. e. Water and Wastewater Facilities. The annexation area will be included with all other areas of the city in the City's Capital Improvements Program. Water and wastewater services to new development and subdivisions will be provided according to the Corpus Christi Code of Ordinances, Corpus Christi Unified Development Code and the Water and Wastewater Department standards, which may require the developer of a new subdivision or site plan to install water and wastewater lines. f. Roads and Streets. No road or street related capital improvements are necessary at this time. In general, the City will acquire control of all public roads and public streets within the annexation area upon annexation. Future extensions of roads or streets and future installation of related facilities, such as traffic control devices, will be governed by the City's standard policies and procedures. g. Parks. Playgrounds and Swimming Pools. No capital improvements are necessary at this time to provide services. h. Street Lighting. No capital improvements are necessary at this time to provide services. Street lighting in new and existing subdivisions will be installed and maintained in accordance with the applicable standard policies and procedures. i. Other Publicly Owned Facilities. Building or Services: Additional Services. In general, other City functions and services, and the additional services described above can be provided for the annexation area by using existing capital improvements. Additional capital improvements are not necessary to provide City services. Municipal Services Plan For the Southside FM 2444 Area Development Services Department September 24, 2014 Page 6 of 17 Legal Department j. Capital Improvements Planning. The annexation area will be included with other territory in connection with the planning for new or expanded facilities, functions, and services as part of the City's Capital Improvement Plan. AMENDMENT: GOVERNING LAW This Plan may not be amended or repealed except as provided by the Texas Local Government Code or other controlling law. Neither changes in the methods or means of implementing any part of the service programs nor changes in the responsibilities of the various departments of the City shall constitute amendments to this Plan, and the City reserves the right to make such changes. This Plan is subject to and shall be interpreted in accordance with the Constitution and laws of the United States of America and the State of Texas, the Texas Local Government Code, and the orders, rules and regulations of governmental bodies and officers having jurisdiction. FORCE MAJEURE In case of an emergency, such as force majeure as that term is defined in this Plan, in which the City is forced to temporarily divert its personnel and resources away from the annexation area for humanitarian purposes or protection of the general public, the City obligates itself to take all reasonable measures to restore services to the annexation area of the level described in this Plan as soon as possible. Force Majeure shall include, but not be limited to, acts of God, acts of the public enemy, war, blockages, insurrection, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrest and restraint of government, explosions, collisions and other inability of the City, whether similar to those enumerated or otherwise, which is not within the control of the City. Unavailability or shortage of funds shall not constitute Force Majeure for purposes of this Plan. SPECIFIC FINDINGS The City of Corpus Christi will provide services to the newly annexed area in a manner that is similar in type, kind, quantity, and quality of service presently enjoyed by the citizens of the City of Corpus Christi, Texas, who reside in areas of similar topography, land utilization and population density. Municipal Services Plan For the Southside FM 2444 Area Development Services Department September 24, 2014 Page 7 of 17 Legal Department EXHIBIT A METES AND BOUNDS SOUTHSIDE FM 2444 ANNEXATION AREA An approximately 10,463 acre tract of land out of Laureles Farm Tracts, recorded in Volume 3 Page 15 and Volume 4 Page 36 of the Map Records, Nueces County, Texas and more particularly described as follows save and except a portion of the property described and attached herein in accordance with City Council approved Development Agreements per Local Government Code 43.035: BEGINNING at the northeast corner of said 10,463 acre tract, more or less, a point on the west right-of-way line of existing County Road 41, located 500 feet north of the centerline of F.M. 2444, for the north corner of the tract herein described; THENCE west and 500 feet north of and parallel to the centerline of FM 2444 for a distance of approximately 3 miles, to a point on the west right-of-way line of County Road 47; THENCE south along the west right-of-way line of County Road 47 and 20 feet west of the east boundary of Section 27 Laureles Farm Tracts to a point on the north right-of-way line of FM 2444; THENCE to the west along the south boundary of the north half of Sections 27 and 26 Laureles Farm Tracts also being the north right-of-way of FM 2444 to the northwest corner of the southeast quarter of Section 26 Laureles Farm Tracts; THENCE to the south, with the west boundary of the southeast quarter of Section 26 Laureles Farm Tracts and parallel with County Road 49 a distance of 0.5 miles to the northeast corner of the northwest quarter of Section 37 Laureles Farm Tracts; THENCE in a westerly direction along the north boundary of Sections 37, 38 and 39 Laureles Farm Tracts to a point located approximately 2000 feet past the northeast corner of Section 39 Laureles Farm Tracts, to the westerly boundary of the Corpus Christi Extraterritorial Jurisdiction formed by Annexation Ordinance 022267 on July 18, 1985 and by annexation ordinance 020039 on October 27, 1985; whose radius point is the southwest corner of a 308.99 Acre Tract out of Shares 1, 2, 3, 4, and 10, Section D of the Laureles Farm Tracts and by Annexation Ordinance 020039 on October 27, 1985 whose radius point is the southwest corner of a 298.056 Acre Tract out of the South 1/2 of Section 31 and the North 1/2 of Section 32 of the Laureles Farm Tracts; THENCE in a southeasterly direction following the Corpus Christi Extraterritorial Jurisdiction formed by Annexation Ordinance 022267 on July 18, 1985 whose radius point is the southwest corner of a 308.99 Acre Tract out of Shares 1, 2, 3, 4, and 10, Section D of the Laureles Farm Tracts and by Annexation Ordinance 020039 on October 27, 1985 whose radius point is the southwest corner of a 298.056 Acre Tract out of the South '/2 of Section 31 and the North '/2 of Section 32 of the Laureles Farm Tracts to the east right-of-way line of County Road 43, crossing Sections 39, 38, 48, 72, 83, 84, 107, 106, 121 and 122 of Laureles Farm Tracts to a point on the east right of way of County Road 43; THENCE in a northerly direction following the east right-of-way line of County Road 43 to a point being 20 feet east of the northwest corner of the south half of Section 104 Laureles Farm Tracts; Municipal Services Plan For the Southside FM 2444 Area Page 8 of 17 Development Services Department September 24, 2014 Legal Department THENCE in an easterly direction along the north boundary of the south half of Section 104 Laureles Farm Tracts to a point on the west boundary of Section 103 Laureles Farm Tracts; THENCE in a northerly direction along the west boundary of Section 103 and 88 Laureles Farm Tracts to the northwest corner of the south half of Section 88 Laureles Farm Tracts; THENCE in a westerly direction along the south boundary of the north half of Section 87 Laureles Farm Tracts to the east right-of-way line of County Road 43; THENCE north along the east right-of-way line of County Road 43 to a point 20 feet east of the southwest corner of north half of Section 68 Laureles Farm Tracts; THENCE east along the north boundary of the south half of Section 68 Laureles Farm Tracts to the southeast corner of the north half of Section 68 Laureles Farm Tracts; THENCE in a northerly direction along the west boundary of Section 67 Laureles Farm Tracts to the northwest corner of Section 67 Laureles Farm Tracts; THENCE to the west along the north boundary of Section 68 Laureles Farm Tracts to the east right- of-way line of County Road 43; THENCE in a northerly direction along the east right-of-way line of Country Road 43 to the point on the north right-of-way line of County Road 14A; THENCE to the west along the north right-of-way line of County Road 14A extended along the south boundary of the north half of Sections 51, 50 and 49 Laureles Farm Tracts to a point on the east right-of-way line of County Road 49; THENCE to the north along the east right-of-way line of County Road 49 being 20 feet east of the west boundary of Sections 49 and 36 Laureles Farm Tracts to a point on the south right-of-way line on County Road 18 being 20 feet south of the northwest corner of the south half of Section 36 Laureles Farm Tracts; THENCE to the east along the south boundary of County Road 18 being 20 feet south of the south boundary of the north half of Section 36 Laureles Farm Tracts to a point on the east right-of-way line of County Road 47 and 20 feet west of the southwest corner of the north half of Section 35; THENCE to the north along the east right-of-way line of County Road 47 and 20 feet east thereof the west boundary of Sections 35 and 28 Laureles Farm Tracts to a point 500 feet south of the centerline of FM 2444; THENCE to the east 500 feet south of and parallel to the centerline of FM 2444 to a point on the west right-of-way line of County Road 41 and the existing Corpus Christi city limits (Ordinance 022267, July 18, 1995) and the east boundary of Section 30 Laureles Farm Tracts to a point; THENCE to the north along the west right-of-way line of County Road 41 and the existing Corpus Christi city limits (Ordinance 022267, July 18, 1995) and the east boundary of Section 30 Laureles Farm Tracts 1000 feet, to the west right-of-way line of County Road 41 and the Corpus Christi city limits (Ordinance 022267, July 18, 1995) to the POINT OF BEGINNING. Municipal Services Plan For the Southside FM 2444 Area Page 9 of 17 Development Services Department September 24, 2014 Legal Department Southside FM 2444 Annexation Area Map Municipal Services Plan For the Southside FM 2444 Area Page 10 of 17 Development Services Department September 24, 2014 Legal Department Property Owner Signed and City Council Adopted Development Agreements Per Local Government Code 43.035 Municipal Services Plan For the Southside FM 2444 Area Page 11 of 17 Development Services Department September 24, 2014 Legal Department Attachment A: Thomas Edward Braman, Nueces County Appraisal District Tax Id. #: 4250-0030- 1001 A 39.98 acre tract, more or less, out of a 478.36 acre tract of land out of the South one-half (S'/2) of Section 30 and the North one-half (N'/2) of Section 33, Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to - wit: BEGINNING at the northwest corner of this tract of land, being on the west boundary line of the South one-half (S 1/2) of Section 30, Laureles Farm Tracts and the centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 43, having a right-of-way width of 40.0 feet; THENCE East, along the centerline of Farm -to -Market 2444 to the western boundary line of a 157 acre tract out of the South one-half (S'/2) of Section 30 and the North one-half (N'/2) of Section 33, Laureles Farm Tracts; THENCE South along the eastern boundary of the Northeast, South one-half (S'/2) of Section 30 and the North one-half (N 1/2) of Section 33, Laureles Farm Tracts, 500.0 feet to the southeast corner of this tract; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Northeast, South one-half (S'/2) of Section 30 and the North one- half (N '/2) of Section 33, Laureles Farm Tracts; THENCE North along west side of said tract of land, 500.0 feet, also being in the center of County Road 43, to the POINT OF BEGINNING containing 44.88 acres of land less 4.90 acres of right-of- way for a total of 39.98 acres. welfr..! P.141 raft, min ier axe Imo. rtcf LOCATION MAP Lan Jm,SO _ _ 7 P49099 Righl4Aaray EPA MvebW^anl Agreement Area - 4nn®Irallen Arra Municipal Services Plan For the Southside FM 2444 Area Page 12 of 17 Development Services Department September 24, 2014 Legal Department Attachment B: James F. Nemec Family Real Property, Nueces County Appraisal District Tax Id. #: 4250-0028-020 A 27.064 acre portion, more or less, of a 160 acre tract of land situated in Nueces County Texas, out of that tract of land originally granted to Ramon de Ynojosa, called the "Rincon de Corpus Christi," Abstract No. 411, and being the Northwest One-fourth (NW 1/4) of Section Twenty -Eight (28), of the Laureles Farm Tracts, bounded as follows, to -wit: BEGINNING at the southwest corner of this tract of land, being on the west boundary line of the Northwest One-fourth (NW %) of Section Twenty -Eight (28), of the Laureles Farm Tracts and on the current right-of-way centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 47, having a right-of-way width of 40.0 feet; THENCE North along west side of said tract of land, 500.0 feet to the northwest corner, also being in the center of the current right-of-way line of County Road 47; THENCE East, being 500.0 feet north of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Northeast, One-fourth (NE %) of Section Twenty -Eight (28) of the Laureles Farm Tracts; THENCE South along the western boundary of the Northeast, One-fourth (NE 1/4) of Section Twenty - Eight (28) of the Laureles Farm Tracts, 500.0 feet to the southeast corner of this tract, also being in the center of Farm -to -Market 2444; THENCE West, along the current right-of-way centerline of Farm -to -Market 2444, to the POINT OF BEGINNING containing 30.30 acres of land less 3.236 acres of righ-of-way for a total of 27.064 acres. X16.. ..,0'0a.1110.110 4 ...6.0011.005 SIAN LOCATION MAP a c 1.00.0.0PW .... 1.0100.5..1.4.050011.011100.11,0. 201.4 Rghl-of-Way ® D9valopm2MAgfeomenlAro9 Anno.aOonA,ea Municipal Services Plan For the Southside FM 2444 Area Page 13 of 17 Development Services Department September 24, 2014 Legal Department Attachment C: Turnbull Land and Cattle, Ltd., Cuervo Ranch Holdings, Ltd., Staples Investment Partnership, and MPJ Assets, LLC., Nueces County Appraisal District Tax Id. #: 425000280401 and 425000280500 owned in undivided interest A 24.79 acre tract, more or less, out of a 290.80 acre portion of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts and 4.78 Acre, more or less Tract of land out of the Southeast one- quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts , a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the Northwest Corner of this tract of land, being the northwest corner of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts and the centerline on Farm -to -Market 2444, having a right-of-way width of 100.0 feet; THENCE East, along the centerline of Farm -to -Market 2444 to the northeast corner of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts, also being the intersection with State Highway 286, having a right-of-way width of 100.00 feet; Thence South along the centerline of State Highway 286, 500.00 feet to the southeast corner of this tract; THENCE West, being 500.0 feet south and parallel to the centerline of Farm -to -Market 2444 to the west boundary line of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts; THENCE North, along the west boundary line of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts to the POINT OF BEGINNING, containing 28.12 acres of land less 3.33 acres of right-of-way for a total of 24.79 acres. R O -W: 3.33 Ac FOS 2.150.0 FRT cArnz LI lE9 FMN TRACTS JOLINKI. nweac ors.. 0Q Ntltlu 111.1.1i !IFl1 ranpull Devel'J`,nalt Agreement Area Rlg%SCf-'NYdy 4r, exa°i?9 A'ea Municipal Services Plan For the Southside FM 2444 Area Page 14 of 17 Development Services Department September 24, 2014 Legal Department That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of , ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor z B U 47 ct3 0 O Cn CO S.0 ii Vet S OSO-PKWY mAis AMY £P MO 1 N1213JJ1a 22 0 0 0) 0 cc W 0 cr a co V-147-133 -17-e13 993 AMH 4 cc z z Laguna Madre L � ie Qct z cn ,o < L oQ Vt :fra 00 V c 0) 0 J Corpus Christi City Limits School Districts Corpus Christi Extra Territorial Jurisdiction Chapman Ranch Wind Farm Boundary Proposed Annexation Area roses ....t r.k EtraaN \ Ltr'21O 2 2 u_ N w Y ;60 / i e• .1/4(;) &o co }2• lV 4i ,/ 0 / _ / 0 ImAa0 N VINVW-VJNVS 2 LL L9I3 N £9 213 V U 0 0\`. J U \v\ \\\\ \J ���������������������� 110-301N109 0 th U 0 0 Bishop Cons. co U 99 £9 a3 • Nk te co th U £9a3 W U 4 re ce U V U 0 CC U z U Q) a z • • • • • • • • • • • • • • • • • • • • • • Is • • July 17, 2014 [Name] [Address] LEGAL DESCRIPTION: TAX ID #: SUBJECT: Proposed Annexation — Southside FM 2444 Area Dear Property Owner: On July 15, 2014, the City of Corpus Christi initiated the process to expand its corporate boundaries by proposing to annex 10,463 acres of land generally located south and southwest of the city. (See attached map) The purpose of this letter is to invite you as a property owner of record to annexation public hearings and to provide a sample development agreement, per state law, that could allow qualifying property owners to opt out of the annexation. To allow for public comment, questions, and general input on the annexation as proposed, the City Council has scheduled two (2) public hearings on this issue. The first public hearing will be held on August 19, 2014. The second will be held on August 26, 2014. Both public hearings will be held at the Corpus Christi City Council Chamber, 1St Floor of City Hall, 1201 Leopard Street, Corpus Christi, Texas, beginning around 11:30 a.m. All interested parties are encouraged to attend and offer comment. In lieu of annexation, State law requires the City to offer some properties a development agreement instead of annexation. If your land is appraised for ad valorem tax purposes as land for agricultural or wildlife management use under Subchapter C or D, Chapter 23, Texas Tax Code, or as timber land under Subchapter E, Chapter 23, Texas Tax Code, you are eligible to negotiate and enter a development agreement with the City (sample enclosed). Such an agreement provides for the continuation of the extraterritorial jurisdiction status of your land so long as the use of your land that entitles you to the agreement does not change. Should the use of your land change to a use other than agricultural, wildlife management or timber land, the agreement would automatically terminate and the land would be annexed into the City at such time, regardless of how the land is appraised for ad valorem tax purposes. Entering an agreement will authorize the enforcement of all regulations and planning authority of the City that do not interfere with the use of your land for agriculture, wildlife management, or timber land. Such regulations include the Unified Development Code, building codes, nuisance regulations, animal control, and general health and sanitation regulations. For your information, entering into this agreement will prohibit the construction of a windfarm on your property. If your property qualifies and you intend to enter into a Development Agreement, please notify us within (30) days of the date this letter. (See contact info below) Proposed Annexation — Southside FM 2444 Area July 17, 2014 Page 2 For your information, entering into the Development Agreement will not cause or allow the City to levy city property taxes on your property. If the City does not receive notification of intent to enter into a Development Agreement within thirty (30) days of the date of this letter we will assume that you are not interested in entering into an agreement. City services will be provided to your property in accordance with a Municipal Services Plan that will be formally adopted by City Council as part of this process. In general, upon annexation into the City, the City will immediately provide police patrol, fire protection, emergency medical response and solid waste pickup for residential properties. A proposed Municipal Services Plan for the Southside FM 2444 area will be posted on the City's website by August 19, 2014. (www.cctexas.com) The Corpus Christi City Council has identified the need to create consistency and unity in regulation of future land use, platting and the provisions of municipal services as it relates to our growing and changing community. The Council has expressed a strong desire to protect and defend the interests of property owners — and to effectively manage growth and development in the areas commonly recognized as part of the Corpus Christi community. The application of City zoning, building, and land development regulations to any neighboring properties that are annexed as part of this process will, over the long term, help protect your property values. Additionally, the inclusion of this area into the City limits will provide better uniformity in the provision of public safety services such as police, fire and EMS. We are committed to assisting you throughout the process by providing any information relating to this pending annexation or answering questions that you may have. Please contact Bob Payne, Special Projects Coordinator at 361-826-3572 or by email at bobpayne@cctexas.com with any questions and if you wish to pursue a Development Agreement. Respectfully, Barney Wil ami; P, E. Interim Dir = tor of Development Services Enclosures Annexation Area Map Development Agreement Proposed Annexation — Southside FM 2444 Area July 17, 2014 Page 3 Annexation Area Map DEVELOPMENT AGREEMENT UNDER SECTION 43.035, TEXAS LOCAL GOVERNMENT CODE This Development Agreement under Section 43.035, Texas Local Government Code (the Agreement") is entered between the City of Corpus Christi, Texas (the "City") and the undersigned property owner(s) (the "Owner") The term Owner shall include all owners of the Property. The City and the Owner are collectively referred to as the Parties. WHEREAS, the Owner owns a parcel of real property in Nueces County, Texas, which is more particularly described in the attached Exhibit "A" (the "Property") that is appraised for ad valorem tax purposes as land for agricultural, wildlife management, or timber land under Chapter 23, Texas Tax Code; WHEREAS, under Section 43.035 the City is required to offer to make a development agreement with the Owner that will provide for the continuation of the extraterritorial status of the area and authorize the enforcement of all regulations and planning authority of the City that do not interfere with the use of the area for agriculture, wildlife management, or timber; WHEREAS, Section 43.035 provides that the restriction or limitation on the City's annexation of all or part of the Property under this Agreement is void if the Owner files any type of subdivision plat or related development document for the Property, regardless of how the area is appraised for ad valorem tax purposes; WHEREAS, the Owner desires to have the Property remain in the City's extraterritorial jurisdiction, in consideration for which the Owner agrees to enter into this Agreement; and WHEREAS, this Agreement is entered into pursuant to Sections 43.035 and 212.172, Texas Local Government Code; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereto agree as follows: Section 1. Extraterritorial Jurisdiction Status of Property. The City agrees that the Property shall remain in the City's extraterritorial jurisdiction (the "ETJ") and the City shall not annex the Property during the term of this Agreement, subj ect to the terms and conditions of this Agreement. Section 2. Owner's Obligations. In consideration of the City's agreement not to annex the Property and as a condition of the Property remaining in the City's ETJ, the Owner covenants and agrees to the following: (a) The Owner shall use the Property only for agriculture, wildlife management, and/or timber land uses, as defined by Chapter 23 of the Texas Tax Code, that are existing on the Effective Date of this Agreement, except for single-family residential use existing on the Effective Date or as otherwise provided by this Agreement. (b) The Owner shall not subdivide the Property, or file for approval of a subdivision plat, site plan, or related development document for the Property with Nueces County or the City until the Property is annexed into and zoned by the City. (c) The Owner shall not construct or allow to be constructed any building or structure on the Property that requires a building permit until the Property is annexed into and zoned by the City. Accessory structures authorized under the City's Unified Development Code and buildings or structures that are related to and necessary for the use of the Property as authorized under Section 2(a) (excluding new single family residences) are exceptions to this Section 2(c), provided that the Owner obtains required building permits prior to construction. (d) The City's zoning regulations shall apply to the Property, and in addition to the uses authorized by the Unified Development Code, the Property may also be used for wildlife management or timber land, as defined by Chapter 23 of the Texas Tax Code, if such uses existed on the Effective Date of this Agreement. Fences shall not be subject to setback requirements. The City's building codes and (e) regulations shall apply to the Property except as provided otherwise in this Section 2(d). Any buildings or structures constructed on the Property after the Effective Date shall be constructed in compliance with the regulations in the Unified Development Code and applicable building codes and regulations, provided that building permits and related inspections shall only be required for the construction of a new single family residence and additions to an existing single family residence that are authorized to be located on the Property under this Agreement. The Owner shall not construct or allow to be constructed wind energy units on his land for the commercial sale of wind energy as defined in the Unified Development Code, Section 5.6. Section 3. Development and Annexation of Property. (a) The following occurrences shall be deemed the Owner's petition for voluntary annexation of the Property, and the Property may subsequently be annexed at the discretion of the City Council: (1) The filing of any application for plat approval, site plan approval, building permit or related development document for the Property, or the commencement of development of the Property, except as specifically authorized herein. (2) The Owner's failure to comply with Section 2. (3) The Property no longer being appraised for ad valorem tax purposes as land for agricultural, wildlife management, or timber land under Chapter 23, Texas Tax Code, or successor statute, unless the Property is no longer appraised for such purposes because the Legislature has abolished agricultural, wildlife management, or timberland exemptions, provided that the Owner is in compliance with Section 2. (4) The filing for voluntary annexation of the Property into the City by the Owner. (5) The expiration of this Agreement. (b) The Owner agrees that annexation initiated due to an occurrence under Section 3(a) shall be voluntary and the Owner hereby consents to such annexation as though a petition for such annexation had been tendered by the Owner. Upon annexation, municipal services shall be provided to the Property in accordance with the adopted municipal services plan. Section 4. Application of City Regulations. Pursuant to Section 43.035(b)(1)(B), Texas Local Government Code, the Property is subject to all of the City's regulations, as they are amended from time to time, and planning authority that do not materially interfere with the use of the Property for agriculture, wildlife management, or timber, in the same manner the regulations are enforced within the City's boundaries and the Owner acknowledges and agrees that the City is hereby authorized to enforce said regulations and planning authority except as specifically provided otherwise herein. Section 5. Term. The term of this Agreement (the "Term") is fifteen (15) years from the Effective Date. Section 6. Vested Rights Claims. This Agreement is not a permit for the purposes of Chapter 245, Texas Local Government Code. The Owner hereby waives any and all vested rights and claims that the Owner may have under Section 43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any actions Owner takes or has taken in violation of Section 2 herein. The Owner further waives any and all vested rights and claims that the Owner may have under Section 43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any application, plan, plat or construction the Owner may file or initiate with respect to the Property following the expiration of this Agreement prior to annexation of the Property by the City, provided that the City initiates annexation proceedings within one year following the expiration of this Agreement. Section 7. Authorization. (a) All parties and officers signing this Agreement warrant to be duly authorized to execute this Agreement. (b) The Owner acknowledges that each and every owner of the Property must sign this Agreement in order for the Agreement to take full effect. The failure of each and every owner of the Property to sign this Agreement at the time of approval and execution by the City shall result in the Agreement being void, and the City may, within its discretion, annex the Property in accordance with applicable law. Section 8. Notice. Any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give written notice of this Agreement to the prospective purchaser or grantee, and shall give written notice of the sale or conveyance to the City. Furthermore, the Owner and the Owner's heirs, successor, and assigns shall give the City written notice within 14 days of any change in the agricultural exemption status of the Property. A copy of the notices required by this Section shall be sent by personal delivery or certified mail, return receipt requested, to the City at the following address: City of Corpus Christi Attn: City Manager PO Box 9277 Corpus Christi, Texas 78469-9277 Notices required to be sent to the Owner shall be sent by personal delivery or certified mail, return receipt requested, to the Owner at the following address: Section 9. Covenant Running with the Land. This Agreement shall run with the Property, and a memorandum of this Agreement in a form substantially similar to that set forth in Exhibit "B" shall be recorded in the Official Public Records of Nueces County, Texas. The Owner and the City acknowledge and agree that this Agreement is binding upon the City and the Owner and their respective successors, executors, heirs, and assigns, as applicable, for the term of this Agreement. Conveyance of the Property, or portions thereof, to subsequent owners does not trigger a request for voluntary annexation unless Section 2 is also violated. Section 10. Severability. If any provision of this Agreement is held by a court of competent and final jurisdiction to be invalid or unenforceable for any reason, then the remainder of the Agreement shall be deemed to be valid and enforceable as if the invalid portion had not been included. Section 11. Amendment and Modifications. This Agreement may be amended or modified only in a written instrument that is executed by both the City and the Owner after it has been authorized by the City Council. Section 12. Gender, Number and Headings. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires. The headings and section numbers are for convenience only and shall not be considered in interpreting or construing this Agreement. Section 13. Governmental Immunity; Defenses. Nothing in this Agreement shall be deemed to waive, modify, or amend any legal defense available at law or in equity to either the City or Owner, including governmental immunity, nor to create any legal rights or claims on behalf of any third party. Section 14. Enforcement; Waiver. This Agreement may be enforced by any Owner or the City by any proceeding at law or in equity. Failure to do so shall not be deemed a waiver to enforce the provisions of this Agreement thereafter. Section 15. Effect of Future Laws. No subsequent change in the law regarding annexation shall affect the enforceability of this Agreement or the City's ability to annex the properties covered herein pursuant to the terms of this Agreement. Section 16. Venue and Applicable Law. Venue for this Agreement shall be in Nueces County, Texas. This Agreement shall be construed under and in accordance with the laws of the State of Texas. Section 17. Counterparts. This Agreement may be separately executed in individual counterparts and, upon execution, shall constitute one and same instrument. Section 18. Effective Date. This Agreement shall be in full force and effect as of the date of approval of this Agreement by the City Council, from and after its execution by the Parties. Section 19. Sections to Survive Termination. This Agreement shall survive its termination to the extent necessary for the implementation of the provisions related to annexation of the Property into the City. Entered into this day of , 2014. Owner (s) Printed Name: Printed Name: City of Corpus Christi, Texas STATE OF TEXAS § COUNTY OF NUECES § BEFORE ME the undersigned authority on this day personally appeared , Owner of the Property, and acknowledged that s/he is fully authorized to execute the foregoing document and that s/he executed such document for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of , 2014. Notary Public - State of Texas STATE OF TEXAS COUNTY OF NUECES BEFORE ME the undersigned authority on this day personally appeared , Owner of the Property, and acknowledged that s/he is fully authorized to execute the foregoing document and that s/he executed such document for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of , 2014. Notary Public - State of Texas STATE OF TEXAS COUNTY OF NUECES BEFORE ME the undersigned authority on this day personally appeared , City of Corpus Christi, Texas and acknowledged that he is fully authorized to execute the foregoing document and that he executed such document for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of , 2014. Notary Public - State of Texas EXHIBIT "A" Nueces County Appraisal District Tax Id. #: Nueces County Appraisal District Property Description: Exhibit "B" MEMORANDUM OF RECORD NOTICE OF DEVELOPMENT AGREEMENT STATE OF TEXAS COUNTY OF NUECES § Whereas, the undersigned ("Owner") and the City of Corpus Christi (the "City"), entered into that certain Development Agreement under Section 43.035, Texas Local Government Code dated , 20 , (the "Agreement"); Whereas, Owner and the City entered the Agreement pursuant to Local Government Code §43.035 which, pursuant to the terms and conditions of the Agreement, effectively guarantees the continuation of the extraterritorial status of Owner's property that is currently appraised for ad valorem tax purposes as agricultural land under Subchapter C or D, Chapter 23 of the Tax Code until the Agreement expires or the property is developed for purposes other than agriculture; Whereas, Owner is the owner of record for the property described in Exhibit "A" attached hereto and incorporated herein for all purposes (the "Property"); Whereas, recording the entire Agreement in the real property records of Nueces County is impractical and needlessly burdensome; and Whereas, the Owner and City agree to file this Memorandum of Record ("Memorandum") to provide notice of the Agreement encumbering the Property; NOW THEREFORE, the undersigned hereby executes this Memorandum and files the same of record in the Deed Records of Nueces County, Texas, for the purpose of giving notice to all persons that: (1) The Agreement is on file with the City Secretary at the Corpus Christi City Hall, copies of which are available upon request. (2) The Owner is required to perform as agreed and provided in the Agreement, as well as in accordance with all other applicable rules, regulations and codes of the City, except as provided otherwise in the Agreement. (3) The Agreement provides that any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give written notice of this Agreement to the prospective purchaser or grantee, and shall give written notice of the sale or conveyance to the City. Furthermore, the Owner and the Owner's heirs, successor, and assigns shall give the City written notice within 14 days of any change in the agricultural exemption status of the Property. Executed and filed this the day of , 2014. THE STATE OF TEXAS By: Name: Title: COUNTY OF NUECES § BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared of the City of Corpus Christi, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of 2014. (SEAL) After Recording Return to: City of Corpus Christi Attn: City Secretary P.O. Box 9277 Corpus Christi, Texas 78469-9277 Notary Public -State of Texas AGENDA MEMORANDUM Action Item for the City Council Meeting of September 30, 2014 DATE: September 30, 2014 TO: Ronald L. Olson, City Manager FROM: Wes Pierson, Assistant City Manager over General Government & Operations Support WesP@cctexas.com (361) 826-3082 Funding of Utility Improvements in the Southside FM 2444 Annexation Area CAPTION: Resolution regarding the funding of utility improvements in the Southside FM2444 Annexation Area with property taxes from the area. PURPOSE: At the September 23, 2014 City Council meeting, City Council passed a motion directing staff to bring forward a recommendation to have the property tax revenue from the proposed APEX Wind Farm resulting from the Southside FM 2444 annexation be used to pay for the utility extension to that area so that the costs don't affect the City's utility customers. BACKGROUND AND FINDINGS: On September 16, 2014, the City Council approved the first reading of an ordinance annexing Laureles Farm Tracts adjacent to the city limits located in Nueces County along and on both sides of FM 2444, areas south of FM 2444 and west of County Road 41, commonly referred to as a portion of the Chapman Ranch and a portion of the proposed APEX Wind Farm. After an Executive Session on September 23, 2014, the City Council passed a motion to direct staff to bring forward a recommendation, prior to the second reading of the annexation, to have the property tax revenue from the proposed APEX Wind Farm be used to pay for the utility infrastructure needed in the newly annexed area. Since the second reading of the annexation is scheduled for September 30, 2014, this item is also being presented at the same meeting. Based on the City's financial analysis for the proposed annexation, it is estimated that the property tax revenue generated from the proposed wind farm would be sufficient to pay for the debt needed to be used to fund installation of utility infrastructure of approximately $13,000,000 to the newly annexed area. Staff recommends utilizing certificates of obligation paid from ad valorem taxes to fund the extension of the City's utility infrastructure to this area. Since part of the City's property tax rate goes towards debt service (the I&S or interest and sinking portion), the additional amount generated by the APEX Wind Farm in the Debt Service Fund would be used to pay the debt service on this debt. In the event that additional property tax revenue is needed to pay the debt, then this amount would be transferred from the Maintenance and Operations (M&O) portion of the property tax rate in the General Fund to the Debt Service Fund as a part of each respective year's budget process. Any excess property tax revenue generated in the General Fund from the APEX Wind Farm would remain in the General Fund. ALTERNATIVES: An alternative would be to fund the utility infrastructure for the newly annexed area from utility rates. OTHER CONSIDERATIONS: n/a CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY / NON -EMERGENCY: n/a DEPARTMENTAL CLEARANCES: Utilities Department Office of Management and Budget Financial Services Department Legal Department FINANCIAL IMPACT: ❑Not Applicable X Operating Expense X Revenue ❑ CIP FISCAL YEAR: Project to Date Exp. (CIP Only) Current Year Future Years TOTALS Budgeted Property Tax Revenue- - $ 13,000,000 $ 13,000,000 Estimated Cost for Utility Line Extension- - $ (13,000,000) $ (13,000,000) This item - $ - $ - BALANCE - - $ - $ - FUND(S): General Fund and Debt Service Fund _ COMMENTS: The estimated cost for the utility infrastructure of the newly annexed area is estimated to be $13,000,000. Staff has projected that sufficient property tax revenue will be generated annually from the APEX Wind Farm to cover the debt service on $13,000,000 of certificates of obligation. RECOMMENDATION: Staff recommends approval of the resolution as presented. LIST OF SUPPORTING DOCUMENTS: Resolution RESOLUTION REGARDING THE FUNDING OF UTILITY IMPROVEMENTS IN THE SOUTHSIDE FM 2444 ANNEXATION AREA WITH PROPERTY TAXES FROM THE AREA WHEREAS, on September 30, 2014, the City Council approved the annexation of the Southside FM 2444 area to regulate land use and development in this area; WHEREAS, the City expects the ad valorem property tax revenue from this area to be substantial due to the taxes on the wind turbines that are planned to be built in the near future; WHEREAS, the City does not expect the cost of utilities and other services needed to serve the area annexed on this day to exceed $13 million; WHEREAS, the City Council therefore intends for City staff to ensure that future adopted budgets preserve this expectation through the use of property tax revenue from this area to fund expected improvements; THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI THAT: The City Council of the City of Corpus Christi through this resolution expresses its intent and directs City staff to use ad valorem tax revenue from the annexed property in the Chapman Ranch area, known as the Southside FM 2444 Property, to first fund costs of utility construction and improvements in that area in order to avoid increases in utility rates for such improvements. City staff are directed to establish special revenue fund(s) for this specific purpose in upcoming proposed budgets to accumulate amounts equivalent to the property taxes received from the Southside FM 2444 Property, which will be used to defray infrastructure development costs for said area and thereby avoid any increase of City utility rates from this annexation. Date: September 30, 2014 Attest: Rebecca Huerta, City Secretary NELDA MARTINEZ, MAYOR CITY OF CORPUS CHRISTI Corpus Christi, Texas of The above resolution was passed by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb Chad Magill Colleen McIntyre Lillian Riojas Mark Scott AGENDA MEMORANDUM Action Item for the City Council Meeting of October 14, 2014 DATE: October 6, 2014 TO: Ronald L. Olson, City Manager FROM: Daniel M. Grimsbo, P.E., AICP, Director of Development Services dang@cctexas.com 361-826-3595 Development Agreements for Property Owners with Agricultural, Wildlife Management or Timber Land Property Exemptions in the Southside FM 2444 Annexation Area CAPTION: Resolution granting a Development Agreement for properties in the Proposed Southside FM 2444 Annexation Area where the property contains an agricultural, wildlife management, or timber land exemption established by the Nueces County Appraisal District and where the property owner has requested the City grant a development agreement in lieu of annexation on their qualifying property; providing for a 15 year time limit; providing that the City will not annex land that is the subject of a Development Agreement; providing that the development agreement authorizes the City to enforce all regulations and planning authority of the municipality provided the authority does not interfere with the use of the area for agriculture, wildlife management, or timber land uses; providing that the area under the Development Agreement is considered adjacent or contiguous to the city; providing that the agreement is automatically terminated if the landowner files any type of subdivision plat or related development document regardless of how the property is appraised by the Nueces County Appraisal District; providing that the agreement will be filed with the Nueces County Clerk; providing for severance; and providing an effective date. PURPOSE: Chapter 43.035 of the Local Government Code requires a city that has proposed to annex land in its Extraterritorial Jurisdiction to first offer a Development Agreement to property owners with an agricultural, wildlife management or timber land property tax exemption. The Development Agreement contains a guarantee that the City will not annex the land covered by the Development Agreement provided that the property owner does not attempt to develop the property and continues to maintain the agricultural, wildlife management or timber land property tax exemption. Under Chapter 43.035 the City is allowed to exercise all planning and land use regulations on property that is covered by a Development Agreement. The Development Agreement offered to the property owners in the annexation area explicitly states that the property owner is not allowed to develop wind energy units (wind farm) on the subject property. BACKGROUND AND FINDINGS: The City offered, by letter on July 17, 2014, a Development Agreement to all of the property owners in the FM 2444 Annexation Area with an agricultural, wildlife management or timber land exemption. The Resolution for this agenda item contains the development agreement and property descriptions and specific maps for property owners that have signed the Development Agreement. Entering into a development agreement with the City will not allow the City to levy property taxes on the subject properties or entitle property owners to standard city services (police, fire, etc.). ALTERNATIVES: Not Applicable. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: a. Pursue a policy of annexation of lands at the periphery of the City to achieve orderly growth. b. Pursue a policy of annexation adjacent to the City's growth areas in order to extend zoning ordinance control consistent with adopted land use plans. EMERGENCY / NON -EMERGENCY: Non -Emergency. DEPARTMENTAL CLEARANCES: Not applicable. FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2013-2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: RECOMMENDATION: Approval of the Resolution as presented. LIST OF SUPPORTING DOCUMENTS: Resolution RESOLUTION GRANTING A DEVELOPMENT AGREEMENT FOR PROPERTIES IN THE PROPOSED SOUTHSIDE FM 2444 ANNEXATION AREA WHERE THE PROPERTY CONTAINS AN AGRICULTURAL, WILDLIFE MANAGEMENT, OR TIMBER LAND EXEMPTION ESTABLISHED BY THE NUECES COUNTY APPRAISAL DISTRICT AND WHERE THE PROPERTY OWNER HAS REQUESTED THE CITY GRANT A DEVELOPMENT AGREEMENT IN LIEU OF ANNEXATION ON THEIR QUALIFYING PROPERTY; PROVIDING FOR A 15 YEAR TIME LIMIT; PROVIDING THAT THE CITY WILL NOT ANNEX LAND THAT IS THE SUBJECT OF A DEVELOPMENT AGREEMENT; PROVIDING THAT THE DEVELOPMENT AGREEMENT AUTHORIZES THE CITY TO ENFORCE ALL REGULATIONS AND PLANNING AUTHORITY OF THE MUNICIPALITY PROVIDED THE AUTHORITY DOES NOT INTERFERE WITH THE USE OF THE AREA FOR AGRICULTURE, WILDLIFE MANAGEMENT, OR TIMBER LAND USES; PROVIDING THAT THE AREA UNDER THE DEVELOPMENT AGREEMENT IS CONSIDERED ADJACENT OR CONTIGUOUS TO THE CITY; PROVIDING THAT THE AGREEMENT IS AUTOMATICALLY TERMINATED IF THE LANDOWNER FILES ANY TYPE OF SUBDIVISION PLAT OR RELATED DEVELOPMENT DOCUMENT REGARDLESS OF HOW THE PROPERTY IS APPRAISED BY THE NUECES COUNTY APPRAISAL DISTRICT; PROVIDING THAT THE AGREEMENT WILL BE FILED WITH THE NUECES COUNTY CLERK; PROVIDING FOR SEVERANCE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Corpus Christi desires to annex land, located south and southwest of the existing city limits and considered to be in the City's primary growth corridor; WHEREAS, Local Government Code, Section 43.035 requires a municipality to offer each property owner in the annexation area with an agricultural or wildlife management or timber land exemption on their property a Development Agreement to be excluded from the municipal annexation; WHEREAS, a letter was sent to each property owner on July 17, 2014, offering a Development Agreement to guarantee extraterritorial status of the area and authorizes the enforcement of all regulations and planning authority of the municipality that does not interfere with the use of the area for an agricultural or wildlife management or timber land exemption; WHEREAS, the proposed Development Agreement prohibits the owner from constructing or allowing to be constructed wind energy units on the land for the commercial sale of wind energy as defined in the Unified Development Code, Section 5.6; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds that approving the proposed Development Agreement (Exhibit A) with property owners having land in the area that meets the requirements for exemptions contained in Local Government Code 43.035 is in the public interest. SECTION 2. That Development Agreement contained in the Exhibit A shall pertain to the properties described in Exhibits B thru G and shall be in effect for a period of up to 15 years providing that the property owner does not violate the agreement by filing a subdivision plat, by constructing or allowing to be constructed a wind turbine for commercial resale of electricity or by not maintaining an exemption for agricultural use or wildlife management or timber land with the Nueces County Appraisal District; SECTION 3. That the owners and inhabitants of the tracts or parcels of land are subject to all regulations and planning authority of the municipality that does not interfere with the property exemption for agricultural use or wildlife management or timber land; SECTION 4. That the official map and boundaries of the City and its extraterritorial jurisdiction, previously adopted and amended, are amended to include the territories described in this resolution considered adjacent or contiguous to the City of Corpus Christi, Texas; SECTION 5. That the City Manager or his designee is directed and authorized to perform or cause to be performed all acts necessary to correct the official map of the City and its extra territorial jurisdiction to designate the properties herein as covered by a development agreement; SECTION 6. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of the resolution 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 resolution for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 7. This resolution goes into effect at a.m, , 2014. PASSED AND APPROVED this day of , 2014 at a Regular Meeting of the City Council of the City of Corpus Christi, Texas. ATTEST: CITY OF CORPUS CHRISTI Rebecca Huerta Nelda Martinez City Secretary Mayor Corpus Christi, Texas of ,2014 The above resolution was passed by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Leob Chad Magill Colleen McIntyre Lillian Riojas Mark Scott Exhibit A: Letter To Property Owners and Development Agreement Per Local Government Code 43.035 for Agricultural or Wildlife Management or Timber Land July 17, 2014 [Name] [Address] LEGAL DESCRIPTION: TAX ID #: SUBJECT: Proposed Annexation — Southside FM 2444 Area Dear Property Owner: On July 15, 2014, the City of Corpus Christi initiated the process to expand its corporate boundaries by proposing to annex 10,463 acres of land generally located south and southwest of the city. (See attached map) The purpose of this letter is to invite you as a property owner of record to annexation public hearings and to provide a sample development agreement, per state law, that could allow qualifying property owners to opt out of the annexation. To allow for public comment, questions, and general input on the annexation as proposed, the City Council has scheduled two (2) public hearings on this issue. The first public hearing will be held on August 19, 2014. The second will be held on August 26, 2014. Both public hearings will be held at the Corpus Christi City Council Chamber, 1st Floor of City Hall, 1201 Leopard Street, Corpus Christi, Texas, beginning around 11:30 a.m. All interested parties are encouraged to attend and offer comment. In lieu of annexation, State law requires the City to offer some properties a development agreement instead of annexation. If your land is appraised for ad valorem tax purposes as land for agricultural or wildlife management use under Subchapter C or D, Chapter 23, Texas Tax Code, or as timber land under Subchapter E, Chapter 23, Texas Tax Code, you are eligible to negotiate and enter a development agreement with the City (sample enclosed). Such an agreement provides for the continuation of the extraterritorial jurisdiction status of your land so long as the use of your land that entitles you to the agreement does not change. Should the use of your land change to a use other than agricultural, wildlife management or timber land, the agreement would automatically terminate and the land would be annexed into the City at such time, regardless of how the land is appraised for ad valorem tax purposes. Entering an agreement will authorize the enforcement of all regulations and planning authority of the City that do not interfere with the use of your land for agriculture, wildlife management, or timber land. Such regulations include the Unified Development Code, building codes, nuisance regulations, animal control, and general health and sanitation regulations. For your information, entering into this agreement will prohibit the construction of a windfarm on your property. If your property qualifies and you Proposed Annexation — Southside FM 2444 Area July 17, 2014 Page 2 intend to enter into a Development Agreement, please notify us within (30) days of the date this letter. (See contact info below) For your information, entering into the Development Agreement will not cause or allow the City to levy city property taxes on your property. If the City does not receive notification of intent to enter into a Development Agreement within thirty (30) days of the date of this letter we will assume that you are not interested in entering into an agreement. City services will be provided to your property in accordance with a Municipal Services Plan that will be formally adopted by City Council as part of this process. In general, upon annexation into the City, the City will immediately provide police patrol, fire protection, emergency medical response and solid waste pickup for residential properties. A proposed Municipal Services Plan for the Southside FM 2444 area will be posted on the City's website by August 19, 2014. (www.cctexas.com) The Corpus Christi City Council has identified the need to create consistency and unity in regulation of future land use, platting and the provisions of municipal services as it relates to our growing and changing community. The Council has expressed a strong desire to protect and defend the interests of property owners — and to effectively manage growth and development in the areas commonly recognized as part of the Corpus Christi community. The application of City zoning, building, and land development regulations to any neighboring properties that are annexed as part of this process will, over the long term, help protect your property values. Additionally, the inclusion of this area into the City limits will provide better uniformity in the provision of public safety services such as police, fire and EMS. We are committed to assisting you throughout the process by providing any information relating to this pending annexation or answering questions that you may have. Please contact Bob Payne, Special Projects Coordinator at 361-826-3572 or by email at bobpayne@cctexas.com with any questions and if you wish to pursue a Development Agreement. Respectfully, Barney Will am'm , P.E. Interim Dir = tor of Development Services Enclosures Annexation Area Map Development Agreement Proposed Annexation — Southside FM 2444 Area July 17, 2014 Page 3 Annexation Area Map DEVELOPMENT AGREEMENT UNDER SECTION 43.035, TEXAS LOCAL GOVERNMENT CODE This Development Agreement under Section 43.035, Texas Local Government Code (the Agreement") is entered between the City of Corpus Christi, Texas (the "City") and the undersigned property owner(s) (the "Owner") The term Owner shall include all owners of the Property. The City and the Owner are collectively referred to as the Parties. WHEREAS, the Owner owns a parcel of real property in Nueces County, Texas, which is more particularly described in the attached Exhibit "A" (the "Property") that is appraised for ad valorem tax purposes as land for agricultural, wildlife management, or timber land under Chapter 23, Texas Tax Code; WHEREAS, under Section 43.035 the City is required to offer to make a development agreement with the Owner that will provide for the continuation of the extraterritorial status of the area and authorize the enforcement of all regulations and planning authority of the City that do not interfere with the use of the area for agriculture, wildlife management, or timber; WHEREAS, Section 43.035 provides that the restriction or limitation on the City's annexation of all or part of the Property under this Agreement is void if the Owner files any type of subdivision plat or related development document for the Property, regardless of how the area is appraised for ad valorem tax purposes; WHEREAS, the Owner desires to have the Property remain in the City's extraterritorial jurisdiction, in consideration for which the Owner agrees to enter into this Agreement; and WHEREAS, this Agreement is entered into pursuant to Sections 43.035 and 212.172, Texas Local Government Code; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereto agree as follows: Section 1. Extraterritorial Jurisdiction Status of Property. The City agrees that the Property shall remain in the City's extraterritorial jurisdiction (the "ETJ") and the City shall not annex the Property during the term of this Agreement, subject to the terms and conditions of this Agreement. Section 2. Owner's Obligations. In consideration of the City's agreement not to annex the Property and as a condition of the Property remaining in the City's ETJ, the Owner covenants and agrees to the following: (a) The Owner shall use the Property only for agriculture, wildlife management, and/or timber land uses, as defined by Chapter 23 of the Texas Tax Code, that are existing on the Effective Date of this Agreement, except for single-family residential use existing on the Effective Date or as otherwise provided by this Agreement. (b) The Owner shall not subdivide the Property, or file for approval of a subdivision plat, site plan, or related development document for the Property with Nueces County or the City until the Property is annexed into and zoned by the City. (c) The Owner shall not construct or allow to be constructed any building or structure on the Property that requires a building permit until the Property is annexed into and zoned by the City. Accessory structures authorized under the City's Unified Development Code and buildings or structures that are related to and necessary for the use of the Property as authorized under Section 2(a) (excluding new single family residences) are exceptions to this Section 2(c), provided that the Owner obtains required building permits prior to construction. (d) The City's zoning regulations shall apply to the Property, and in addition to the uses authorized by the Unified Development Code, the Property may also be used for wildlife management or timber land, as defined by Chapter 23 of the Texas Tax Code, if such uses existed on the Effective Date of this Agreement. Fences shall not be subject to setback requirements. The City's building codes and regulations shall apply to the Property except as provided otherwise in this Section 2(d). Any buildings or structures constructed on the Property after the Effective Date shall be constructed in compliance with the regulations in the Unified Development Code and applicable building codes and regulations, provided that building permits and related inspections shall only be required for the construction of a new single family residence and additions to an existing single family residence that are authorized to be located on the Property under this Agreement. (e) The Owner shall not construct or allow to be constructed wind energy units on his land for the commercial sale of wind energy as defined in the Unified Development Code, Section 5.6. Section 3. Development and Annexation of Property. (a) The following occurrences shall be deemed the Owner's petition for voluntary annexation of the Property, and the Property may subsequently be annexed at the discretion of the City Council: (1) The filing of any application for plat approval, site plan approval, building permit or related development document for the Property, or the commencement of development of the Property, except as specifically authorized herein. (2) The Owner's failure to comply with Section 2. (3) The Property no longer being appraised for ad valorem tax purposes as land for agricultural, wildlife management, or timber land under Chapter 23, Texas Tax Code, or successor statute, unless the Property is no longer appraised for such purposes because the Legislature has abolished agricultural, wildlife management, or timberland exemptions, provided that the Owner is in compliance with Section 2. (4) The filing for voluntary annexation of the Property into the City by the Owner. (5) The expiration of this Agreement. (b) The Owner agrees that annexation initiated due to an occurrence under Section 3(a) shall be voluntary and the Owner hereby consents to such annexation as though a petition for such annexation had been tendered by the Owner. Upon annexation, municipal services shall be provided to the Property in accordance with the adopted municipal services plan. Section 4. Application of City Regulations. Pursuant to Section 43.035(b)(1)(B), Texas Local Government Code, the Property is subject to all of the City's regulations, as they are amended from time to time, and planning authority that do not materially interfere with the use of the Property for agriculture, wildlife management, or timber, in the same manner the regulations are enforced within the City's boundaries and the Owner acknowledges and agrees that the City is hereby authorized to enforce said regulations and planning authority except as specifically provided otherwise herein. Section 5. Term. The term of this Agreement (the "Term") is fifteen (15) years from the Effective Date. Section 6. Vested Rights Claims. This Agreement is not a permit for the purposes of Chapter 245, Texas Local Government Code. The Owner hereby waives any and all vested rights and claims that the Owner may have under Section 43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any actions Owner takes or has taken in violation of Section 2 herein. The Owner further waives any and all vested rights and claims that the Owner may have under Section 43.002(a)(2) and Chapter 245 of the Texas Local Government Code that would otherwise exist by virtue of any application, plan, plat or construction the Owner may file or initiate with respect to the Property following the expiration of this Agreement prior to annexation of the Property by the City, provided that the City initiates annexation proceedings within one year following the expiration of this Agreement. Section 7. Authorization. (a) All parties and officers signing this Agreement warrant to be duly authorized to execute this Agreement. (b) The Owner acknowledges that each and every owner of the Property must sign this Agreement in order for the Agreement to take full effect. The failure of each and every owner of the Property to sign this Agreement at the time of approval and execution by the City shall result in the Agreement being void, and the City may, within its discretion, annex the Property in accordance with applicable law. Section 8. Notice. Any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give written notice of this Agreement to the prospective purchaser or grantee, and shall give written notice of the sale or conveyance to the City. Furthermore, the Owner and the Owner's heirs, successor, and assigns shall give the City written notice within 14 days of any change in the agricultural exemption status of the Property. A copy of the notices required by this Section shall be sent by personal delivery or certified mail, return receipt requested, to the City at the following address: City of Corpus Christi Attn: City Manager PO Box 9277 Corpus Christi, Texas 78469-9277 Notices required to be sent to the Owner shall be sent by personal delivery or certified mail, return receipt requested, to the Owner at the following address: Section 9. Covenant Running with the Land. This Agreement shall run with the Property, and a memorandum of this Agreement in a form substantially similar to that set forth in Exhibit "B" shall be recorded in the Official Public Records of Nueces County, Texas. The Owner and the City acknowledge and agree that this Agreement is binding upon the City and the Owner and their respective successors, executors, heirs, and assigns, as applicable, for the term of this Agreement. Conveyance of the Property, or portions thereof, to subsequent owners does not trigger a request for voluntary annexation unless Section 2 is also violated. Section 10. Severability. If any provision of this Agreement is held by a court of competent and final jurisdiction to be invalid or unenforceable for any reason, then the remainder of the Agreement shall be deemed to be valid and enforceable as if the invalid portion had not been included. Section 11. Amendment and Modifications. This Agreement may be amended or modified only in a written instrument that is executed by both the City and the Owner after it has been authorized by the City Council. Section 12. Gender, Number and Headings. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, unless the context otherwise requires. The headings and section numbers are for convenience only and shall not be considered in interpreting or construing this Agreement. Section 13. Governmental Immunity; Defenses. Nothing in this Agreement shall be deemed to waive, modify, or amend any legal defense available at law or in equity to either the City or Owner, including governmental immunity, nor to create any legal rights or claims on behalf of any third party. Section 14. Enforcement; Waiver. This Agreement may be enforced by any Owner or the City by any proceeding at law or in equity. Failure to do so shall not be deemed a waiver to enforce the provisions of this Agreement thereafter. Section 15. Effect of Future Laws. No subsequent change in the law regarding annexation shall affect the enforceability of this Agreement or the City's ability to annex the properties covered herein pursuant to the terms of this Agreement. Section 16. Venue and Applicable Law. Venue for this Agreement shall be in Nueces County, Texas. This Agreement shall be construed under and in accordance with the laws of the State of Texas. Section 17. Counterparts. This Agreement may be separately executed in individual counterparts and, upon execution, shall constitute one and same instrument. Section 18. Effective Date. This Agreement shall be in full force and effect as of the date of approval of this Agreement by the City Council, from and after its execution by the Parties. Section 19. Sections to Survive Termination. This Agreement shall survive its termination to the extent necessary for the implementation of the provisions related to annexation of the Property into the City. Entered into this day of , 2014. Owner (s) Printed Name: Printed Name: City of Corpus Christi, Texas STATE OF TEXAS COUNTY OF NUECES § § BEFORE ME the undersigned authority on this day personally appeared Owner of the Property, and acknowledged that s/he is fully authorized to execute the foregoing document and that s/he executed such document for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of 2014. STATE OF TEXAS COUNTY OF NUECES § § Notary Public - State of Texas BEFORE ME the undersigned authority on this day personally appeared Owner of the Property, and acknowledged that s/he is fully authorized to execute the foregoing document and that s/he executed such document for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of 2014. STATE OF TEXAS COUNTY OF NUECES § § Notary Public - State of Texas BEFORE ME the undersigned authority on this day personally appeared , City of Corpus Christi, Texas and acknowledged that he is fully authorized to execute the foregoing document and that he executed such document for the purposes and consideration therein expressed and in the capacity therein stated. 2014. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of Notary Public - State of Texas DEVELOPMENT AGREEMENT Nueces County Appraisal District Tax Id. #: Nueces County Appraisal District Property Description: MEMORANDUM OF RECORD NOTICE OF DEVELOPMENT AGREEMENT STATE OF TEXAS COUNTY OF NUECES § Whereas, the undersigned ("Owner") and the City of Corpus Christi (the "City"), entered into that certain Development Agreement under Section 43.035, Texas Local Government Code dated , 20 , (the "Agreement"); Whereas, Owner and the City entered the Agreement pursuant to Local Government Code §43.035 which, pursuant to the terms and conditions of the Agreement, effectively guarantees the continuation of the extraterritorial status of Owner's property that is currently appraised for ad valorem tax purposes as agricultural land under Subchapter C or D, Chapter 23 of the Tax Code until the Agreement expires or the property is developed for purposes other than agriculture; Whereas, Owner is the owner of record for the property described in Exhibit "A" attached hereto and incorporated herein for all purposes (the "Property"); Whereas, recording the entire Agreement in the real property records of Nueces County is impractical and needlessly burdensome; and Whereas, the Owner and City agree to file this Memorandum of Record ("Memorandum") to provide notice of the Agreement encumbering the Property; NOW THEREFORE, the undersigned hereby executes this Memorandum and files the same of record in the Deed Records of Nueces County, Texas, for the purpose of giving notice to all persons that: (1) The Agreement is on file with the City Secretary at the Corpus Christi City Hall, copies of which are available upon request. (2) The Owner is required to perform as agreed and provided in the Agreement, as well as in accordance with all other applicable rules, regulations and codes of the City, except as provided otherwise in the Agreement. (3) The Agreement provides that any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give written notice of this Agreement to the prospective purchaser or grantee, and shall give written notice of the sale or conveyance to the City. Furthermore, the Owner and the Owner's heirs, successor, and assigns shall give the City written notice within 14 days of any change in the agricultural exemption status of the Property. Executed and filed this the day of , 2014. By: Name: Title: THE STATE OF TEXAS COUNTY OF NUECES § BEFORE ME, the undersigned authority, a Notary Public in and for said County and State, on this day personally appeared of the City of Corpus Christi, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the day of 2014. (SEAL) After Recording Return to: City of Corpus Christi Attn: City Secretary P.O. Box 9277 Corpus Christi, Texas 78469-9277 Notary Public -State of Texas Exhibit B: Thomas Edward Braman, Nueces County Appraisal District Tax Id. #: 4250-0030- 1001 A 39.98 acre tract, more or less, out of a 478.36 acre tract of land out of the South one-half (S 1/2) of Section 30 and the North one-half (N '/2) of Section 33, Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the northwest corner of this tract of land, being on the west boundary line of the South one-half (S 1/2) of Section 30, Laureles Farm Tracts and the centerline of Farm -to - Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 43, having a right-of-way width of 40.0 feet; THENCE East, along the centerline of Farm -to -Market 2444 to the western boundary line of a 157 acre tract out of the South one-half (S 1/2) of Section 30 and the North one-half (N '/2) of Section 33, Laureles Farm Tracts; THENCE South along the eastern boundary of the Northeast, South one-half (S 1/2) of Section 30 and the North one-half (N '/2) of Section 33, Laureles Farm Tracts, 500.0 feet to the southeast corner of this tract; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Northeast, South one-half (S 1/2) of Section 30 and the North one-half (N 1/2) of Section 33, Laureles Farm Tracts; THENCE North along west side of said tract of land, 500.0 feet, also being in the center of County Road 43, to the POINT OF BEGINNING containing 44.88 acres of land less 4.90 acres of right-of-way for a total of 39.98 acres. R•O•W: 4.90 Acres FM tae ]91 D.0,001 LOCATION MAP Landon ISO SITEN ; Y 4- 0 ,. e,. 44 IA 44.441M1E444 4.= 44.44 RpM•d•WayEM Development Agreement Area :,qi'0, Anneramion Area 290 440 1 00r0...t K. MI 41,c3X 313 R•O•W: 4.90 Acres FM tae ]91 D.0,001 LOCATION MAP Landon ISO SITEN ; Y 4- 0 ,. e,. 44 IA 44.441M1E444 4.= 44.44 RpM•d•WayEM Development Agreement Area :,qi'0, Anneramion Area 290 440 1 00r0...t ti Exhibit C: James F. Nemec Family Real Property, Nueces County Appraisal District Tax Id. #: 4250-0028-020 A 27.064 acre portion, more or less, of a 160 acre tract of land situated in Nueces County Texas, out of that tract of land originally granted to Ramon de Ynojosa, called the "Rincon de Corpus Christi," Abstract No. 411, and being the Northwest One-fourth (NW '/4) of Section Twenty -Eight (28), of the Laureles Farm Tracts, bounded as follows, to -wit: BEGINNING at the southwest corner of this tract of land, being on the west boundary line of the Northwest One-fourth (NW 1/4) of Section Twenty -Eight (28), of the Laureles Farm Tracts and on the current right-of-way centerline of Farm -to -Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 47, having a right-of-way width of 40.0 feet; THENCE North along west side of said tract of land, 500.0 feet to the northwest corner, also being in the center of the current right-of-way line of County Road 47; THENCE East, being 500.0 feet north of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Northeast, One-fourth (NEA) of Section Twenty -Eight (28) of the Laureles Farm Tracts; THENCE South along the western boundary of the Northeast, One-fourth (NE "1/4) of Section Twenty -Eight (28) of the Laureles Farm Tracts, 500.0 feet to the southeast corner of this tract, also being in the center of Farm -to -Market 2444; THENCE West, along the current right-of-way centerline of Farm -to -Market 2444, to the POINT OF BEGINNING containing 30.30 acres of land less 3.236 acres of righ-of-way for a total of 27.064 acres. SLUMP. IRNSISS SISIM SW Oil. MeV 3.236 Acres !Jammu. mu IsAc7s Iss.sAcs sa Meta SEGO 2619.9 Fowl 949.9 F. LOCATION MAP MEE La n ISb CR LAMS Sr= SEM.. trIfr Fu 2444 uw.44 aa1 rcw:n `bea`"'"w144.crs3rwua: Right -of -'Way MI Darolopmam Agraemanl Arta " AnnosaUan Area Exhibit D: Turnbull Land and Cattle, Ltd., Cuervo Ranch Holdings, Ltd., Staples Investment Partnership, and MPJ Assets, LLC., Nueces County Appraisal District Tax Id. #: 425000280401 and 425000280500 owned in undivided interest A 24.79 acre tract, more or less, out of a 290.80 acre portion of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts and 4.78 Acre, more or less Tract of land out of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts , a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the Northwest Corner of this tract of land, being the northwest corner of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts and the centerline on Farm - to -Market 2444, having a right-of-way width of 100.0 feet; THENCE East, along the centerline of Farm -to -Market 2444 to the northeast corner of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts, also being the intersection with State Highway 286, having a right-of-way width of 100.00 feet; Thence South along the centerline of State Highway 286, 500.00 feet to the southeast corner of this tract; THENCE West, being 500.0 feet south and parallel to the centerline of Farm -to -Market 2444 to the west boundary line of the Southeast one-quarter (SE 14 ) of Section 28, Laureles Farm Tracts; THENCE North, along the west boundary line of the Southeast one-quarter (SE 1/4 ) of Section 28, Laureles Farm Tracts to the POINT OF BEGINNING, containing 28.12 acres of land less 3.33 acres of right-of-way for a total of 24.79 acres. R-O.W: 3.33 Acres NSF Fwr __ 724:79 Acre/ L- R -0,1N: L 2,304 F FAV 1M 1 LOCATrON MAP London iso snr€ .F. a 1 PI I �/4 Turnhe1l Development Agreement Area En Riphs-at-Way , Annexation Awa 0 110 500 1 Exhibit E: J.W. Owens, Nueces County Appraisal District Tax Id. #: 425000280305 A 22.21 acre tract, more or less, out of 120.0 acres, more or less, out of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts and a portion of 10 acres, more or less, out of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the northwest corner of this tract of land, being on the west boundary line of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts and the centerline of Farm -to - Market 2444, having a right-of-way width of 100.0 feet, as it intersects the centerline of County Road 47, having a right-of-way width of 40.0 feet; THENCE East, along the centerline of Farm -to -Market 2444, to the northeast corner of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts; THENCE South along the eastern boundary of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts, 500.0 feet; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts, also being in the center of County Road 47; THENCE North along the centerline of County Road 47, 500.0 feet to the POINT OF BEGINNING containing 25.25 acres of land less 3.04 acres of right-of-way for a total of 22.21 acres. 1411.66 F66166/6 H4 6666/166 MAY il6.66 l60...66.6 161161166 161 6646E6E MEP. 6.61,6 6.6616. 1.6466.66 .116 66•616 MA= oar LOCATION MAP ay, 6,3666,e61d li 1E, imnnni 5 /04re =63 II do ISC Right-cfWey selection I Oeve!ownent Agreement Mee M1, - AnnexiMnArea 1I6�n e.. Exhibit F: R.L. Owens, Nueces County Appraisal District Tax Id. #: 425000280000 A 6.20 acre tract, more or less, out of a 36.298 acre tract, out of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts, a map of which is recorded in Volume 3, Page 15, Map Records of Nueces County, Texas, bounded as follows, to -wit: BEGINNING at the northeast corner of this tract of land, also being the northwest corner of the southeast corner of Section 28 of the Laureles Farm Tracts and the centerline of Farm -to - Market 2444, having a right-of-way width of 100.0 feet; THENCE South along east side of said tract of land, 500.0 feet to the southeast corner of the Middle Portion of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts; THENCE West, being 500.0 feet south of and parallel to the centerline of Farm -to -Market 2444, to the west boundary line of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts; THENCE North along the western boundary of the Middle Portion of the South one-half (S 1/2) of Section 28 of the Laureles Farm Tracts, 500.0 feet to the northwest corner of this tract, also being in the center of Farm -to -Market 2444; THENCE East, along the centerline of Farm -to -Market 2444, to the POINT OF BEGINNING containing 6.89 acres of land less 0.69 acres of right-of-way for a total of 6.20 acres. r W2ENSJW R -0-1N; -99 Acres LL . g '6.29'Acres U4{IFl f4 FNW IRAC25W1O4C5 CM OR SIR SEC 2$ STAPLESCFIAPMM RA4C11 ROAD .ALFELES FARM TRACES 26262 RCS OM' Wm SEC 24 PM 2444 LOCATION MAP London ieM nt Rowel CA Devetopme.a Agreemeht Area Rght-of-4Yay ".::..`r^ v MrAl<af»on AFea Exhibit G: Catherine Marie Sims Property 425000260001 LAURELES FARM TRACTS 159 ACS OUT OF SE/4 SEC 26 425000270000 LAURELES FARM TRACTS 309 ACS OUT OF S/2 SEC 27 425000270200 LAURELES FARM TRACTS 10 ACS OUT OF S/2 SEC 27 425000360100 LAURELES FARM TRACTS 80 ACS OUT OF W/2 OF NW/4 SEC 36 425000360300 LAURELES FARM TRACTS 240 ACS OUT OF NE/4 & E/2 OF NW/4 SEC 36 425000370000 LAURELES FARM TRACTS NE/4 SEC 37, 160 ACS 425000260000 LAURELES FARM TRACTS 1 AC OUT OF SE/4 SECTION 26 425000270005 LAURELES FARM TRACTS 1 AC OUT OF S/2 SECTION 27 LAI/REM FARM TRACTS MONO INT SEZ.315ACS OUT VI PT .SEC SSA OUT SMEC II LAUREL,/ M. TRACTS 169 AOC OLT OF SVAA SS HIGHT A WE TR ES F78 Nd6T6486ACC LY SIMS CATHERINE MARIE LAURELE FARM TRACTS 1 AC OUT OF SEM SEC 26 re,/, eff SIMS CATHERINE MARIE EAURELES. FARM.TRACTS 159ACS OUT,COF. SEM SEC X26 LARIELES FARIA TRACT3 IRS 10 ./02. COT EIS CIA, CHAIM. C ET, OF NO SEC ST 141331 SEC SI SIRS CATHERINE MARIE LAIIRELES FARM TRACTS SNS CATHERINE MARIE 1 AC OUT OF SR SEC 21 - LAURELES FARM TRACTS 10ACS OUT OF SR SEC 27 V/. NEMARIE ,SIM3,CAT LAURELES 309'AC5 O H/jj IT j� Pd0 ACS U OF OF NEIL & E!2 OF NMtld SEC 36 UllRELES FARM 1133CTS MACS 01.1,3.2 A NI. SEC E7 CR LOCATION MAP London !SD SITE c.»+ CR IA cR a as rt ngDevelopment Agreement Area d Annexation Area 0 25090 1.1:109 3N NEMEC JAMES F FAM REAL PR wimmansimmmmif- a 1176 SIMS CATHERINE MARIE SIMS CATHERINE MARIE STAPLES CHAPMAN RANCH ROA SIMS CATHERINE MARIE OCKER DONALD A -RICHARD OCKER DONALD A -RICHARD/ I I INUECES TEXAS TRANSPORTATION COMM COLEMAN S T & J A LTD REAL ESTATE PARTNE• SIMS CATHERINE MARIE OWENS J W OWENS J W' GARRETT JOSEPH E ET A - S wa I- -TAanalrnal - a�c OWENS R L TURNBULL! LAND & CATTLE LT I I TURNBULL LAND & CATTLE LT BRAMANTHOM S EDWARD SOUTH STAPLES LLC CITY OF CORPUS CHRISTI 'FROST NAIL BANK MEANEY MICHAEL THEODORE J AEP TEXAS CENTRAL CO HIGHT LETA MAE TR HIGHT LETA MAE TR rA MAE,TR CR18 -CR ----CR '16 ui CCV ei--.j rf �///HIGHT I ETA MAE TRUST 5� � COWLES RAE/A G MEMORIAL //1/// /////41,770,` r -or ' - . - . ., . ��//�//'/r�e"/a,. 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OWEN FAMILY FARMS LTD EICHELBERGER UNIS CHAPMAN EICHELBERGER UNIS CHAPMAN CR. -6 EICHELBERGER UNIS CHAPMAN oa OR48 OWEN FAMILY FARMS LTD Discontinued Project Area (Per APEX Energy 8/14) Development Agreement Area Windfarm Boundary DEVELOPMENT AGREEMENTS AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 14, 2014 Second Reading Ordinance for the City Council Meeting of October 21, 2014 DATE: October 14, 2014 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager christelam@cctexas.com 361-826-3169 Michael Armstrong, Director of Municipal Information Systems michaelar@cctexas.com 361-826-3740 Appropriating Funds for and Awarding the purchase and installation of two (2) 911 Workstations CAPTION: Ordinance appropriating $335,866.17 from the Unreserved Fund Balance into the No. 5210 Municipal Information System Fund for the purchase and installation of two (2) 911 workstations; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $335,866.17 in the No. 5210 Municipal Information System Fund; and approving the purchase and installation of two (2) workstations from Intrado System Corporation for $335,866.17 based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments. PURPOSE: This equipment will upgrade the existing 911 Workstations to Power 911 Intelligent Workstations and will include project management and training. BACKGROUND AND FINDINGS: Positron Viper is the 911 call handling system for Corpus Christi and Nueces County. The Police Department upgraded to Positron Viper in 2009. The workstations are an integrated Intelligent workstation that provides call takers with on-screen control of both landline and wireless calls. The workstations allow MetroCom Supervisors advanced reporting, analysis, print call, incident, and dispatch reports. The upgrade will allow for a fully useable back up for 911 calls if the current 911 center has to be moved to a backup location. This workstation purchase will allow our Positron Viper to be upgraded and integrated with the Next Generation 911 that will allow call takers to receive texts and videos through though mobile devices when allowed. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Municipal Information Systems Department FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $0.00 $0.00 Encumbered / Expended Amount $0.00 $0.00 This item $335,866.17 $335,866.17 BALANCE $0.00 $0.00 Fund(s): Municipal Information System Fund Comments: Funds were budgeted for FY 2013-2014, however, funds were not expended prior to fiscal year-end, and will be rolled into the Fund Balance for FY 2014-2015. RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price sheet. Page 1 of 2 Ordinance appropriating $335,866.17 from the Unreserved Fund Balance into the No. 5210 Municipal Information System Fund for the purchase and installation of two (2) 911 workstations; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $335,866.17 in the No. 5210 Municipal Information System Fund; and approving the purchase and installation of two (2) workstations from Intrado System Corporation for $335,866.17 based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. Funds in the amount of $335,866.17 are appropriated from the Unreserved Fund Balance into the No. 5210 Municipal Information System Fund for the purchase and installation of two (2) 911 workstations. The workstations will be used by the Corpus Christi Police Department's MetroComm Unit. Section 2. The FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 is changed by increasing expenditures each by $335,866.17 in the No. 5210 Municipal Information System Fund. Section 3. The purchase from and installation by Intrado System Corporation of Longmont, Colorado, of two (2) 911 workstations, for a total amount of $335,866.17, is approved. The purchase of the workstations is based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments, and the City Manager or his designee is authorized to execute all documents necessary to complete the purchase and installation. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Jr. Lillian Riojas Priscilla G. Leal Mark Scott David Loeb Page 2of2 The foregoing ordinance was read for the second time and passed finally on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Jr. Lillian Riojas Priscilla G. Leal Mark Scott David Loeb PASSED AND APPROVED on this the day of , 2014 ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GERALD GOODWIN ITEM DESCRIPTION QTY UNIT PRICE SHEET HGAC CONTRACT NO. EC07-14 911 WORKSTATIONS Intrado Systems Corp. Longmont, CO UNIT TOTAL PRICE PRICE 1 Intrado Viper Power 911 Intelligent Workstations 2 Each $ 167,933.09 $335,866.17 Total: $335,866.17 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 14, 2014 Second Reading Ordinance for the City Council Meeting of October 21, 2014 DATE: October 14, 2014 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager chrisetalm@cctexas.com (361) 826-3169 Jim Davis, Director of General Services jimd@cctexas.com (361) 826-1909 Appropriating Funds for and Awarding the Purchase of two (2) Trucks CAPTION: Ordinance appropriating $437,530 from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of two (2) trucks; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $437,530 in the No. 4200 Wastewater Fund; and approving the purchase of two (2) trucks from Rush Truck Center of Texas for $437,530 based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments. PURPOSE: The trucks will be used by Solid Waste Operations to transport wastewater sludge in the containers from various Wastewater Treatment Plant to the Cefe Valenzuela Landfill. All units are replacements to the fleet. Replaced units will be disposed of through standard disposal of surplus property procedures, including live auctions and/or electronic auctions. BACKGROUND AND FINDINGS: Not applicable. ALTERNATIVES: CNG is not available for this vehicle. CNG Standards Checklist Standard Meets Standard Does not Meet Standard Future Years TOTALS Line Item Budget Reliability (OEM available?) $0.00 (CNG not available) Specifications (Bi -Fuel available?) Encumbered / Expended Amount (Bi -Fuel not available) Economics (comparison available?) (CNG not available) Exclusions X $437,530.00 No OEM available X BALANCE Mission Capability compromised X OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Utilities Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 2013- 2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $0.00 $0.00 Encumbered / Expended Amount $0.00 $0.00 This item $437,530.00 $437,530.00 BALANCE $0.00 $0.00 Fund(s): Wastewater Fund Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet Page 1 of 2 Ordinance appropriating $437,530 from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of two (2) trucks; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $437,530 in the No. 4200 Wastewater Fund; and approving the purchase of two (2) trucks from Rush Truck Center of Texas for $437,530 based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. Funds in the amount of $437,530 are appropriated from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of two (2) trucks. The trucks will be used by the Wastewater Treatment Plants to haul sludge to the Cefe Valenzuela Landfill. Section 2. The FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 is changed by increasing expenditures by $437,530 in the No. 4200 Wastewater Fund. Section 3. The purchase from Rush Truck Center of Texas, L.P., of Houston, Texas, of two (2) Peterbilt trucks with Heil low -lift 22' roll off containers, for a total amount of $437,530.00, is approved. The purchase of the trucks is based on the cooperative purchasing agreement with the Houston -Galveston Area Council of Governments, and the City Manager or his designee is authorized to execute all documents necessary to complete the purchase. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Jr. Lillian Riojas Priscilla G. Leal Mark Scott David Loeb Page 2 of 2 The foregoing ordinance was read for the second time and passed finally on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Jr. Lillian Riojas Priscilla G. Leal Mark Scott David Loeb PASSED AND APPROVED on this the day of , 2014 ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GABRIEL MALDONADO ITEM DESCRIPTION QTY. PRICE SHEET HGAC- Contract No. - HT06-14 UNIT RUSH TRUCK CENTEROF TEXAS, L.P. HOUSTON, TEXAS Unit Extended Price Price 1. Peterbilt 367 truck with Heil low lift 22' rolloff sludge containers. 2 EA $218,765.00 $437,530.00 Award Total $437,530.00 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 14, 2014 Second Reading Ordinance for the City Council Meeting of October 21, 2014 DATE: October 14, 2014 TO: Ronald L. Olson, City Manager FROM: Christela Morales, Procurement Manager chrisetalm@cctexas.com (361) 826-3169 Jim Davis, Director of General Services jimd@cctexas.com (361) 826-1909 Appropriating Funds for and Awarding the Purchase of twenty-three (23) Round Bottom Containers CAPTION: Ordinance appropriating $164,149 from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of 23 containers; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $164,149 in the No. 4200 Wastewater Fund; and approving the purchase of 23 containers from Wastequip, Beeville, Texas, for $164,149 based on the cooperative purchasing agreement with the National Joint Powers Alliance. PURPOSE: The containers will be used to haul sludge from each Wastewater Treatment Plant (WWTP) to the Cefe Valenzuela Landfill. BACKGROUND AND FINDINGS: The acquisition of these containers will improve efficiency by sharing delivery responsibilities across multiple plants and increase capacity of the containers, which will reduce the number of vehicles and the number of trips from each WWTP to the landfill. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Utilities Department FINANCIAL IMPACT: ❑ Operating ❑ Revenue X Capital ❑ Not applicable Fiscal Year: 2013- 2014 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $0.00 $0.00 Encumbered / Expended Amount $0.00 $0.00 This item $164,149.00 $164,149.00 BALANCE $0.00 $0.00 Fund(s): Wastewater Fund Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet Page 1 of 2 Ordinance appropriating $164,149 from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of 23 containers; changing the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 by increasing expenditures by $164,149 in the No. 4200 Wastewater Fund; and approving the purchase of 23 containers from Wastequip, Beeville, Texas, for $164,149 based on the cooperative purchasing agreement with the National Joint Powers Alliance. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. Funds in the amount of $164,149 are appropriated from the Unreserved Fund Balance into the No. 4200 Wastewater Fund for the purchase of 23 round bottom containers. The containers will be used by the Wastewater Treatment Plants to haul sludge to the Cefe Valenzuela Landfill. Section 2. The FY2014-2015 Operating Budget adopted by Ordinance No. 030294 is changed by increasing expenditures by $164,149 in the No. 4200 Wastewater Fund. Section 3. The purchase from Wastequip, of Beeville, Texas, of 23 round bottom containers ranging in size from seven to nine yards, for a total amount of $164,149.00, is approved. The purchase of the containers is based on the cooperative purchasing agreement with the National Joint Powers Alliance, and the City Manager or his designee is authorized to execute all documents necessary to complete the purchase. The foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Jr. Lillian Riojas Priscilla G. Leal Mark Scott David Loeb Page 2 of 2 The foregoing ordinance was read for the second time and passed finally on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Jr. Lillian Riojas Priscilla G. Leal Mark Scott David Loeb PASSED AND APPROVED on this the day of , 2014 ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: GABRIEL MALDONADO Price Sheet ROUND BOTTOM CONTAINERS NJPA Contract # 060612-WQI Wastequip May Fab Beeville, Texas Item Description 1 25 Yd round bottom gasketed door open top Qty. Unit Price Extended Price 2 Installed side rolling tarp for 25 yd 3 Carboline 4500 (20 mil thick) for 25 yd RBGD 4 15 Yd round bottom gasketed door open top - 15' long 5 Carboline 4500 (20 mil thick) for 15 yd RBGD 6 9 Yd round bottom gasketed door open top - 12' long 7 Carboline 4500 (20 mil thick) for 9 yd RBGD 8 Freight Charges 9 9 9 7 7 7 7 1 $6,171.00 $650.00 $1,540.00 5,275.00 $55,539.00 $5,850.00 $13,860.00 36, 925.00 $1,150.00 $8,050.00 $4,750.00 $33,250.00 $1,025.00 $7,175.00 $3,500.00 $3,500.00 Total $164,149.00 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 14, 2014 Second Reading Ordinance for the City Council Meeting of October 21, 2014 DATE: September 15, 2014 TO: Ronald L. Olson, City Manager FROM: Floyd Simpson, Chief of Police floyds@cctexas.com 886-2604 Amending the FY2014-2015 Crime Control and Prevention District Budget CAPTION: Approving the FY 2014-2015 amended budget for the Corpus Christi Crime Control and Prevention District to include expenditures of $1,296,212 for the addition of eleven (11) officers, two (2) lieutenants, four (4) vehicles, and related equipment and supplies; and amending Ordinance No. 030294 by increasing the number of authorized "Police Lieutenant" positions by two (2) and the number of authorized "Police Officer and Senior Police Officer" by forty eight (48). PURPOSE: FY2015 budget needs to be amended by the City Council. BACKGROUND AND FINDINGS: The Crime Control and Prevention District board adopted the original budget on June 18, 2014 and City Council approved the budget on August 12, 2014. The Board voted to amend the FY2015 budget by adding eleven officers, two Lieutenants, and related expenditures in the amount of $1,296,212 on September 10, 2014. The City Council must approve the amended budget. The number of authorized positions is being modified to provide for the increase by the Crime Control and Prevention District and provide for future growth as funding is available. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Conforms to all city policies. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: OMB Legal FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $6,399,668 $6,399,668 Encumbered / Expended Amount This item $1,296,212 $1,296,212 BALANCE $7,695,880 $7,695,880 Fund(s): Crime Control and Prevention District Comments: RECOMMENDATION: Staff recommends amending the budget LIST OF SUPPORTING DOCUMENTS: Modified pages to the original approved budget document. Ordinance Approving the FY 2014-2015 amended budget for the Corpus Christi Crime Control and Prevention District to include expenditures of $1,296,212 for the addition of eleven (11) officers, two (2) lieutenants, four (4) vehicles, and related equipment and supplies; and amending the FY 2014-2015 Operating Budget adopted by Ordinance No. 030294, by increasing the number of authorized "Police Lieutenant" positions by two (2) and the number of authorized "Police Officer and Senior Police Officer" by forty eight (48). WHEREAS, pursuant to §363.205 Local Government Code, the Corpus Christi Crime Control and Prevention District budget may be amended after the beginning of the fiscal year; and WHEREAS, the Corpus Christi Crime Control and Prevention District Board has approved amending the FY 2014-2015 budget to include expenditures of $1,296,212 for the addition of eleven (11) officers, two (2) lieutenants, four (4) vehicles, and related equipment and supplies on September 10, 2014. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Fiscal Year 2014-2015 amended budget for the Corpus Christi Crime Control and Prevention District to include expenditures of $1,296,212 for the addition of eleven (11) officers, two (2) lieutenants, four (4) vehicles, and related equipment and supplies is approved. SECTION 2. Ordinance No. 030294 is amended by increasing the number of positions authorized for classification of "Police Lieutenant" by two (2), and increasing the number of positions authorized for classification of "Police Officer and Senior Police Officer" positions by forty eight (48). That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor Crime Control & Prevention District FY -201212013 Actual Revenues & Expenditures FY -2013/2014 Year End Revenue & Expenditure Estimates FY -201412015 Proposed Budget Actuals 2012/2013 Total 14 Months Budget 2013/2014 Estimated 14 Months 2013/2014 Proposed 2014/2015 Beginning Balance Revenues Sales Tax Interest on Investments Interest Earned-Interfund Interdepartmental Services Transfer From Other Funds Transfer From Gen. Liability Fd. Transfer From Workman's Comp Juvenile Drug Testing Total Current Revenues Total Funds Available Expenditures Police Officer Costs Police Officer Trainee Intern Pawn Shop Detail Public Safety Veh. & Equip. Police Academy Costs Juvenile Assessment Center Citizens Advisory Council Juvenile City Marshals Reserve Appropriation Total Expenditures Ending Balance Surplus/(Deficit) 2,790,674 6,701,922 2,590 101 57,133 50,806 8,842 3,834,420 8,565,322 2,100 42,717 13,000 3,834,420 8,340,081 2,100 42,717 4,511,918 7,575,750 3,000 10,000 10,000 6,821,394 9,612,068 8,623,139 12,457,559 8,394,898 7,588,750 12,229,318 12,100,668 4,627,741 5,622,168 5,473,024 166,406 252,903 121,226 117,614 191,057 161,347 137,549 985,524 985,524 135,220 186,987 189,355 385,088 506,250 491,114 21,510 166,759 155,030 186,520 234,147 140,781 - 122,277 - 5,987,908 135,361 170,011 397,292 154,055 469,527 191,483 140,243 50,000 5,777,648 8,268,071 3,834,420 4,189,488 7,717,400 4,511,918 7,695,880 4,404,788 1,043,747 355,068 677,498 (107,130) * Revised to reflect cost of salaries and benefits for 11 additional officers, two (2) additional lieutenants, and supplies ** Revised to reflect the cost of four (4) additional vehicles Revised September 10, 2014 Page 1 CITY OF CORPUS CHRISTI CRIME CONTROL & PREVENTION DISTRICT POLICE OFFICER COSTS -11711 EXPENDITURE BUDGET Account Description Actuals Amended Estimated Proposed 2012/2013 14 Months 14 Months 2014/2015 Budget 2013/2014 2013/2014 Salaries and Wages 2,667,232 3,120,552 3,030,956 3,445,427 Overtime 264,104 324,500 329,036 285,000 Other Pay 174,226 346,033 292,202 275,000 Retirement 696,268 854,633 840,476 925,653 Group insurance benefits 362,028 443,485 443,485 456,718 Other employee benefits 9,660 11,293 11,293 9,970 Chemical/household supplies - 583 283 300 Clothing 71,581 82,642 82,642 90,720 Fuel & lubricants 123,505 204,167 189,167 297,000 Food and food supplies 440 350 350 500 Minor tools & equipment 79,387 28,713 46,667 37,800 Minor computer equipment 692 - 0 - Office supplies 23 1,167 1,167 1,200 Maintenance & repairs - 233 233 300 Professional services 1,438 1,400 1,700 1,500 Temporary services 444 - 0 - Vehicle repairs 28 350 300 300 Mileage reimbursement 3,518 - 0 - Telephoneltelegraph service 15,855 17,500 18,500 17,200 Equipment maintenance - 1,167 1,167 1,000 Police Supplemental Insurance 6,000 7,000 7,000 6,000 Police Vision Insurance 3,262 4,900 4,900 4,200 Sworn Empl - Dental 19,890 31,500 31,500 27,000 Self Insurance Allocation 128,160 140,000 140,000 105,120 Totals 4,627,741 5,622,168 5,473,024 5,987,908 FTES: FY -201112012-50 Police Officers FY -201212013-50 Police Officers FY -2013/2014-50 Police Officers FY -2014/2015-63 Police Officers Salaries and benefits for 11 additional officers and 2 additional lieutenants Retirement for 11 additional officers and 2 additional lieutenants Fuel for 4 additional vehicles Clothing Minor tools Revised September 10, 2014 Page 2 CRIME CONTROL & PREVENTION DISTRICT PUBLIC SAFETY VEHICLES -11717 EXPENDITURE BUDGET Account Description Actuals Amended 14 Estimated Proposed 2012/2013 Months 14 Months 2014/2015 Budget 2013/2014 2013/2014 Minor Tools & Equipment 3,133 153,700 153,700 - Professional Services 5,865 22,555 22,555 Vehicles & Machinery 128,551 304,343 304,343 367,292 Other Equipment - 504,926 504,926 30,000 Totals 137,549 985,524 985,524 397,292 FY -201112012-5 replacement vehicles FY -201212013-5 replacement vehicles FY -2012/2013 -funds approp. on 10/17/12 for purchase of 3 police motorcycles FY -201312014-5 replacement vehicles/2 police motorcycles FY -2014/2015-5 replacement vehicles FY -2014/2015-4 additional vehicles Revised September 10, 2014 Page 5 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 14, 2014 Second Reading Ordinance for the City Council Meeting of October 21, 2014 DATE: TO: Ronald L. Olson, City Manager September 26, 2014 FROM: Robert Rocha, Fire Chief rrocha@cctexas.com (361) 826-3932 2014 Homeland Security Grant Program — State Homeland Security Program, Law Enforcement Terrorism Prevention Activities, Sub -Recipient Award in the Amount of $73,235.00 CAPTION: Ordinance Authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $73,235.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program Law Enforcement Terrorism Prevention Activity; and appropriating $73,235.00 from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program (SHSP), into the No. 1062 Fire Grants Fund to carry out law enforcement terrorism prevention and protection -oriented activities such as planning, organization, training, exercises, and purchase needed equipment PURPOSE: These grant funds are used to provide law enforcement and emergency response communities with enhanced capabilities for detecting, deterring, disrupting, preventing, and responding to potential threats of man-made, natural disaster, and acts of terrorism. The Fire Department will use the funds for staff salaries, training and purchase of needed equipment. BACKGROUND AND FINDINGS: The Texas Department of Public Safety, Texas Homeland Security State Administrative Agency has informed the City of Corpus Christi that our jurisdiction has been awarded a State Homeland Security Program grant in the amount of $73,235.00. Since 2004 the U. S. Department of Homeland Security has annually issued grants to the State of Texas who in turn awards the grants to municipalities through its Homeland Security Program. ALTERNATIVES: If we do not accept the grant award, we will have limited emergency response and security capabilities. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval of Ordinance is needed to accept and appropriate grant award. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: None FINANCIAL IMPACT: X Operating ❑ Revenue ❑ Capital o Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 0 0 Encumbered / Expended Amount 0 0 This item $73,235.00 $73,235.00 BALANCE $73,235.00 $73,235.00 Fund(s): Fund 1062 Fire Grants Comments: None RECOMMENDATION: Staff recommends approval of this ordinance to execute all documents necessary to accept the grant and appropriate the funds in the amount of $73,235.00. LIST OF SUPPORTING DOCUMENTS: Ordinance Award Letter Agreement Ordinance Authorizing the City Manager or designee to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $73,235.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program Law Enforcement Terrorism Prevention Activity; and appropriating $73,235.00 from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program, into the No. 1062 Fire Grants Fund to carry out Law Enforcement Terrorism Prevention Activities such as planning, organization, training, exercises, and purchase needed equipment Be it Ordained by the City Council of the City of Corpus Christi, Texas: Section 1. The City Manager or designee is authorized to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $73,235.00 for the FY 2014 Homeland Security Grant Program (HSGP), State Homeland Security Program Law Enforcement Terrorism Prevention Activity. Section 2. That $73,235.00 is appropriated from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program into the No. 1062 Fire Grants Fund to carry out Law Enforcement Terrorism Prevention Activities such as planning, organization, training, exercises, and purchase needed equipment. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor Texas Department of Public Safety Of p E(! A -, 4 T' K\ r,^ 2014 Sub -Recipient Award for City of Corpus Christi 1. General Award Information Reference/Encumbrance No: Date of Award: September 16, 2014 Prepared By: Youngs, Jamie 3. SAA Award Number: 14 -SR 17000-02 4. Sub -Recipient Name and Address 5. Federal Grant Information Mayor Nelda Martinez City of Corpus Christi 1201 Leopord Street Corpus Christi, TX 78401 Federal Grant Title: Homeland Security Grant Program (HSGP) State Homeland Security Program (SHSP) Federal Grant Award Number: EMW-2014-SS-00029 Federal Granting Agency: U.S. Department of Homeland Security(DHS) Federal Emergency Management Agency (FEMA) Date Federal Grant Awarded to TxDPS: August 6, 2014 CFDA: 97.067 6. Award Amount and Grant Breakdowns Grant Period: SHSP LETPA From: Sep 1, 2014 To: Jan 31, 2016 $73,235.00 (The SAA must receive all invoices by the end of grant period). 7. Statutory Authority for Grant: The Department of Home Homeland Security Act of 2002 as amended (Public Law 107-296), and Security Appropriations Act, 2014, (Public Law 113-76), and The (6 U.S.C. § 603). S. Method of Payment: Primary method is reimbursement. 9. Debarment/Suspension Certification: The Sub -Recipient are not debarred,suspended, proposed for debarment, declared and do not have active Exclusions listed at https://www.sam.gov/portal/public/SAM/ certifies that the sub -recipient and its contractors/vendors and principals ineligible or voluntarily excluded by any federal department or agency 10. Agency Approvals Approving TxDPS Official: ' Garry Jones Deputy Assistant Director Texas Homeland Security State Administrative Agency Texas Department of Public Safety Signature of TxDPS Official: ��sL�t,�i II ij r 11. Sub -Recipient Acceptance I have read, understood and agree to this Sub -Recipient Agreement consisting of this Award and the attached Terms and Conditions. Print name and title of Authorized Sub -Recipient Official: Nelda Martinez Signature of Sub -Recipient Official: Enter Employer Identification Number (EIN) or Federal Tax Identification Number: 74-6000574 DUNS Number: 069457786 Date Signed : DUE DATE: October 31, 2014 Signed Award with Terms and Conditions must be returned to SAA_SRA@dps.texas.gov on or before the due date. 2014 TERMS AND CONDITIONS Instructions: The Sub -recipient shall 1. Fill in the information and sign the Grant Sub -Recipient Award; 2. Certify they have read and understand these Terms and Conditions, 3. Certify to the statements provided in Exhibits A, B, C and D located at the back of this document by filling in contact information and signing all exhibits, and 4. Retum all documents via email to SAA_SRA@dps.texas.gov on or before the date provided in the transmittal letter and/or in this Grant 1. Grant Sub -recipient Agreement This Grant Sub -recipient Agreement (consisting of this 2014 Grant Sub -recipient Award and these Terms and Conditions) is made and entered into by and between the Department of Public Safety / Texas Homeland Security State Administrative Agency, an agency of the State of Texas, hereinafter referred to as "DPS/THSSAA," and the funds recipient, hereinafter referred to as the "Sub -recipient" or "Sub -grantee.' Furthermore, DPS/THSSAA and the Sub -recipient are collectively hereinafter referred to as the "Parties." This Grant Sub -recipient Agreement (SRA), or otherwise referred to herein as "this Grant" or "this Agreement", is only an offer until Sub -recipient returns the signed copy of this Grant on or before the date provided in the transmittal letter and/or in this Grant Sub -recipient Award. The FY 2014 Homeland Security Grant Program (HSGP) funding plays an important role in the implementation of the National Preparedness System (NPS) by supporting the building, sustainment, and delivery of core capabilities essential to achieving the National Preparedness Goal (NPG) of a secure and resilient Nation. HSGP funding shall be used for statutorily eligible costs related to the planning, organization, equipment, training, and exercise needs that prevent, protect against, mitigate, respond to, and recover from acts of terrorism and other catastrophic events. This program provides an integrated mechanism that builds and sustains core capabilities to support the Nation's Preparedness against terrorist attacks, major disasters, and other emergencies. The FY 2014 Nonprofit Security Grant Program (NSGP) funding plays an important role in the implementation of the National Preparedness System (NPS) by supporting the development and sustainment of core capabilities. Core capabilities are essential for the execution of each of the five mission areas outlined in the NGP. NSGP provides funding support statutorily eligible costs to include target hardening and other physical security enhancements and activities to nonprofit organizations that are at high risk of terrorist attack and located within one of the specific Urban Areas Security Initiative (UASI)-eligible Urban Areas. While this funding is provided specifically to high-risk nonprofit organizations, the program seeks to integrate nonprofit preparedness activities with broader State and local preparedness efforts. It is also designed to promote coordination and collaboration in emergency preparedness activities among public and private community representatives, as well as State and local government agencies. Sub -recipient may not assign or transfer any interest in this Grant without the express, prior written consent of DPS/THSSAA. If Sub -recipient issues subawards as part of this Grant project, Sub -recipient shall include and require its subawardees to comply with the terms and conditions of this Grant. The term "Sub -recipient agreement funds" as used in this Grant means funds provided by DPS/THSSAA under the United States Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA) grant programs (also referred to herein as DHS/FEMA). The term "Sub -recipient's funds" or match funds as used in this Grant means funds provided by the Sub -recipient. 2. Overview and Performance Standards All allocations and use of funds under this Grant shall be in accordance with the FY 2014 Funding Opportunity Announcement (FOA) for the Federal Grant Title specified on this Grant, and such FY 2014 FOA is incorporated by reference herein. Sub -recipient shall read, understand and accept the FY 2014 Funding Opportunity Announcement as binding. A. Standard of Performance. Sub -recipient shall perform all activities and projects entered into the DPS/THSSAA web -based grants management system which are approved by DPS/THSSAA. Any change to a project shall receive prior written approval by the appropriate local, regional and state -level grant administrator(s). Sub -recipient shall perform all activities in accordance with all terms, provisions and requirements set forth in this Grant, including but not limited to the following Exhibits: 1. Assurances — Non -Construction Programs, hereinafter referred to as "Exhibit A" 2. Assurances — Construction Programs, hereinafter referred to as "Exhibit B" 3. Certifications, hereinafter referred to as "Exhibit C" 4. State of Texas Assurances, hereinafter referred to as "Exhibit D" B. Failure to Perform. In the event Sub -recipient fails to implement the project(s) entered and approved in the DPS/THSSAA web -based grants management system, or comply with any provision of this Grant, Sub -recipient shall be liable to DPS/THSSAA for an amount not to exceed the award amount of this Grant and may be barred from applying for or receiving additional DHS/FEMA grant program funds or any other grant program funds administered by DPS until repayment to DPS/THSSAA is made and any other compliance or audit finding is satisfactorily resolved, in addition to any other remedy specified in this Grant. Failure to timely implement projects may reduce future funding in additional DHS/FEMA and/or other grant programs administered by DPS. 3. Environmental Review Sub -recipient shall assess its federally funded projects for potential impact to environmental resources and historic properties. Sub -recipient shall submit any required screening form(s) as soon as possible and shall comply with deadlines established by DPS/THSSAA. Timelines for the Environmental Planning and Historic Preservation (EHP) review process will vary based upon the complexity of the project and the potential for environmental or historical impact. Sub -recipient shall include sufficient review time within its project management plan to comply with EHP requirements. Initiation of anv activity prior to completion of FEMA's Page 2 OF 18 EHP review will result in a non-compliance finding and DPS/THSSAA will not authorize or release Grant funds for non-compliant nroiects. Sub -recipient, as soon as possible upon receiving this Grant, shall provide information to DPS/THSSAA to assist with the legally -required EHP review and to ensure compliance with applicable EHP laws and Executive Orders (EO) currently using the FEMA EHP Screening Form OMB Number 1660-0115/FEMA Form 024-0-01 and submitting it, with all supporting documentation, to DPS/THSSAA for review. These EHP requirements include but are not limited to the National Environmental Policy Act, the National Historic Preservation Act, the Endangered Species Act, EO 11988 — Floodplain Management, EO 11990 — Protection of Wetlands, and EO 12898 — Environmental Justice. Sub -recipient shall comply with all Federal, State, and local EHP requirements and shall obtain applicable permits and clearances. See FEMA Information Bulletin 329. Sub -recipient shall not undertake any activity from the project that would result in ground disturbance, facility modification, or purchase and use of sonar equipment without the prior approval of FEMA. These include but are not limited to communications towers, physical security enhancements involving ground disturbance, new construction, and modifications to buildings. Sub -recipient shall comply with all mitigation or treatment measures required for the project as the result of FEMA's EHP review. Any changes to an approved project description will require re-evaluation for compliance with EHP requirements before the project can proceed. If ground disturbing activities occur during project implementation, Sub -recipient shall ensure monitoring of ground disturbance and if any potential archeological resources are discovered, Sub -recipient shall immediately cease construction in that area and notify FEMA and the appropriate State Historical Preservation Office. 4. Funding Obligations A. DPS/THSSAA shall not be liable to Sub -recipient for any costs incurred by Sub -recipient that are not allowable costs. B. Notwithstanding any other provision of this Grant, the total of all payments and other obligations incurred by DPS/THSSAA under this Grant shall not exceed the Total Award Amount listed on the Grant Sub -recipient Award. C. Sub -recipient shall contribute the match funds listed on the Grant Sub -recipient Award. D. Sub -recipient shall refund to DPS/THSSAA any sum of these Grant funds that has been determined by DPS/THSSAA to be an overpayment to Sub -recipient or that DPS/THSSAA determines has not been spent by Sub -recipient in accordance with this Grant. No refund payment(s) shall be made from local, state or federal Grant funds unless repayment with Grant funds is specifically permitted by statute or regulation. Sub -recipient shall make such refund to DPS/THSSAA within thirty (30) calendar days after DPS/THSSAA requests such refund. E. Notwithstanding any other provisions, the Parties hereto understand and agree that DPS/THSSAA's obligations under this Grant are contingent upon the receipt of adequate funds to meet DPS/THSSAA's liabilities hereunder, except as required by the Homeland Security Grant Program (HSGP). DPS/THSSAA shall not be liable to Sub -recipient for costs which exceed the amount specified in this Grant. 5. Performance Period The performance period for this Grant is listed on the Grant Sub -Recipient Award. All goods and services shall be received within the performance period AND all reimbursement requests shall be submitted to DPS/THSSAA within the performance period, Sub -recipient shall have expended all Grant funds And submitted reimbursement requests and any invoices in the DPS/THSSAA grant management system by the end of the performance period. DPS/THSSAA shall not be obligated to reimburse expenses incurred or submitted after the performance period. 6. Uniform Administrative Requirements. Cost Principles and Audit Requirements Except as specifically modified by law or this Grant, Sub -recipient shall administer this Grant through compliance with the most recent version of all applicable laws and regulations, including but not limited to DHS program legislation, Federal awarding agency regulations, and the terms and conditions of this Grant. A non-exclusive list is provided below. A. Administrative Requirements 1. 44 C.F.R. Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (the A-102 Common Rule); 2. 2 C.F.R. Part 215, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non -Profit Organizations (OMB Circular A-110). 3. 44 C.F.R. Part 10, Environmental Considerations B. Cost Principles 1. 2 C.F.R. Part 225, Cost Principles for State, Local and Indian Tribal Governments (OMB CircularA-87) 2. 2 C.F.R. Part 220, Cost Principles for Educational Institutions (OMB Circular A-21) 3. 2 C.F.R. Part 230, Cost Principles for Non -Profit Organizations (OMB Circular A-122) 4. 48 C.F.R. Subpart 31.2, Federal Acquisition Regulations (FAR), Contracts with Commercial Organizations C. Audit Requirements OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. D. Grant Guidance (Funding Opportunity Announcement) Sub -recipient agrees that all allocations and use of funds under this Grant shall be in accordance with the applicable FY 2014 Funding Opportunity Announcement and supplemental resources for the HSGP currently available at htta://www.fema.aov/media-library-data/1395161200285-5b07ed0456056217175fbdee28d2b06e/FY 2014 HSGP FOA Final.odf and the Nonprofit Security Grant Program (NSGP), htta://www.fema.00v/media-library-data/1396016700388-fb23d813b8df0d8eab995c8f27clac3e/FY 2014 NSGP FOA Final Revised.odf. 7. DHS Specific Acknowledgements and Assurances Sub -recipient shall comply with the DHS Standard Administrative Terms and Conditions that are outlined in Part 6.1.1 — Financial Assistance Award Standard Terms and Conditions (January 14, 2011), which is incorporated by reference herein. DHS requires those standard terms and conditions which are approved by the Division of Financial Assistance Policy and Oversight to be applied to all financial assistance awards: htto://www.dhs.aov/xlibrarv/assets/cfo-financial-management-oolicv-manual.odf. Sub -recipient acknowledges and agrees, and shall require any sub -recipients, subawardees, contractors, successors, transferees, and assignees to acknowledge and agree to comply with applicable provisions governing DHS access to records, accounts, documents, information, facilities, and staff. 1. Sub -recipient shall cooperate with any compliance review or complaint investigation conducted by DHS. 2. Sub -recipient shall give DHS access to and the right to examine and copy records, accounts, and other documents and sources of information related to this Grant and permit access to facilities, personnel, and other individuals and information as may be necessary, as required by DHS regulations and other applicable laws or program guidance. 3. Sub -recipient shall submit timely, complete, and accurate reports to the appropriate DHS officials and maintain appropriate backup documentation to support the reports. 4. Sub -recipient shall comply with all other special reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. 5. If, during the past three (3) years, Sub -recipient has been accused of discrimination on the grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status, Sub -recipient shall provide a list of all such proceedings, pending or completed, including outcome and copies of settlement agreements to the DHS awarding office and the DHS Office of Civil Rights and Civil Liberties. 6. In the event any court or administrative agency makes a finding of discrimination on grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status against Sub -recipient, or Sub -recipient settles a case or matter alleging such discrimination, Sub -recipient shall forward a copy of the complaint and findings to the DHS Component and/or awarding office. The United States has the right to seek judicial enforcement of these obligations. 8. Operation Stonegarden (OPSG) Specific Conditions If Sub -recipient is receiving Operation Stonegarden (OPSG) funds, Sub -recipient is prohibited from obligating or expending OPSG funds provided through this Grant until each unique, specific, or modified county level, tribal or equivalent Operations Order or Fragmentary Order has been reviewed and approved by official notification by FEMA and Customs and Border Protection/Border Patrol (CBPIBP). Each Operations Order will be transferred via the secure portal (CBP/BP) BPETS system from each respective AOR Sector HQ to CBP/BP HQ in Washington, D.C., for review and pre -approval for Operational continuity, then forwarded to FEMA GPD/PGD OPSG Program Office for final review/approval. Official notification of approval will be sent by FEMA via email to DPS/THSSAA and CBP/BP HQ in Washington, D.C. 1. Sub -recipient shall develop and submit required operational documents through the border area's Integrated Planning Team. 2. Sub -recipient shall maintain an approved Concept of Operations, consisting of a campaign plan and proposed budget which will articulate the intent of how OPSG funds will be used throughout Sub -recipient's Grant performance period. 3. If Sub -recipient intends to spend more than 50 percent of its award on overtime over the course of the performance period. a request for an overtime waiver shall be submitted through the Integrated Planning Team. 4. Sub -recipient shall develop and submit Operations Orders for Tactical operational periods to achieve the strategic objectives of the campaign plan. 5. Sub -recipient shall only initiate tactical operations after the specific Operations Order(s) are approved through the Border Patrol Headquarters and by FEMA, and the DPS/THSSAA has issued a Grant Sub -recipient Award or Grant Adjustment Notice (GAN) to the jurisdiction. 9. State Requirements for Grants Sub -recipient shall comply with all other federal, state, and local laws and regulations applicable to this Grant including but not limited to the laws and the regulations promulgated in Texas Government Code, Chapter 783, Uniform Grant and Contract Management, State Administrative Agency Information Bulletins, available at htto://www.txdos.state,tx.us/director staff/saa/information bulletins.htm Texas Uniform Grants Management Standards (UGMS) at htta://www.window.state.tx.us/orocurement/catrad/uoms,odf and the State Administrative Agency Sub -recipient Manual, available at htto://www.txdos.state.tx.us/director staff/saa/documents/subrecioientManual.odf. Sub -recipient shall, in addition to the assurances and certifications, comply and require each of its subcontractors employed in the completion of the project to comply with all applicable statutes. regulations, executive orders, OMB circulars, terms and conditions of this Grant, and the approved application. Sub -recipient shall comply with the State of Texas General Appropriations Act, Art. IX, Part 4, as follows: 1. Grant funds may not be expended for this Grant to a law enforcement agency regulated by Texas Occupations Code, Chapter 1701, unless the law enforcement agency requesting this Grant is in compliance with all rules developed by the Texas Commission on Law Enforcement (COLE) or TCOLE certifies that the requesting agency is in the process of achieving compliance with such rules. 2. Grant funds may not be awarded to or expended by any entity which performs political polling. This prohibition does not apply to a poll conducted by an academic institution as part of the institution's academic mission that is not conducted for the benefit of a particular candidate or party. 3. Grant funds may not be expended by a unit of local government unless the following limitations and reporting requirements are satisfied: a. Texas General Appropriations Act, Art. IX, Parts 2 and 3, except there is no requirement for increased salaries for local government employees; b. Texas Government Code Sections 556.004, 556.005, and 556.006, which prohibits using any money or vehicle to support the candidacy of any person for office; influencing positively or negatively the payment, loan, or gift to a person or political organization for a political purpose and using Grant funds to influence the passage or defeat of legislation including not assisting with the funding of a lobbyist, or using Grant funds to pay dues to an organization with a registered lobbyist; c. Texas Government Code Sections 2113.012 and 2113.101, which prohibits using Grant funds to compensate any employee who uses alcoholic beverages on active duty and Sub -recipient may not use Grant funds to purchase an alcoholic beverage and may not pay or reimburse any travel expense for an alcoholic beverage; d. Texas General Appropriations Act, Art. IX, Section 6.13, which requires Sub -recipient to make every effort to attain key performance target levels associated with this Grant, including performance milestones, milestone time frames, and related performance reporting requirements; and e. General Appropriations Act, Art. IX, Sections 7.01 and 7.02, and Texas Government Code §2102.0091, which requires that this Grant may only be expended if Sub -recipient timely completes and files its reports. 10. Restrictions and General Conditions A. Use of Funds. DHS Grant funds may only used for the purposes set forth in this Grant, and shall be consistent with the statutory authority for this Grant. Grant funds may not be used for matching funds for other Federal grants/cooperative agreements, lobbying, or intervention in Federal regulatory or adjudicatory proceedings. In addition, Federal funds may not be used to sue the Federal government or any other government entity. B. Lobbvina Prohibited. No funds shall be expended by Sub -Recipient to pay any person to influence, or attempt to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any Federal action concerning the award or renewal of any Federal contract, grant, loan, or cooperative agreement. These lobbying prohibitions may be found at 31 U.S.C. §1352. Further, Sub -Recipient understands and agrees that it shall not use any federal funds, either directly or indirectly, in support of the enactment, repeal, modification or adoption of any law, regulation, or policy, at any level of government, without the express prior written approval of FEMA. C. Transferring Funds. Sub -recipient is prohibited from transferring funds between grant programs (such as SHSP, UASI, and OPSG) without a properly executed GAN. D. Federal Employee Prohibition. Federal employees are prohibited from serving in any capacity (paid or unpaid) on any proposal submitted under this Grant. Federal employees may not receive funds under this Grant. E. Cost Categories. There may be limitations on the use of HSGP and/or NSGP funds for the categories of costs listed below. For additional details on restrictions on the use of funds, refer to the FY 2014 HSGP or NSGP FOA, Appendix C, Funding Guidelines. 1. Management and Administration 2. Planning 3. Organization 4. Equipment 5. Training 6. Exercises 7. Maintenance and Sustainment 8. Critical Emergency Supplies 9. Construction and Renovation F. Governing Board Approval. In cases where local funding is established by a Council of Government (COG) or an Urban Area Security Initiative (UASI) governing board the release of funds by DPS/THSSAA is contingent upon funding allocation approval by the governing board. Pana c Mr G. Notices. All notices or communications required or permitted to be given by either Party hereunder shall be deemed sufficiently given if mailed by registered mail or certified mail, return receipt requested, or sent by overnight courier, such as Federal Express or Lone Star, to the other Party at its respective address. For notice to DPS/THSSAA see address set forth below. For Sub -recipient, see the address listed on the Grant Sub -Recipient Award page or Point of Contact address listed for the Sub -recipient in the DPS/THSSAA Grants Management System (SPARS). DPS/THSSAA Contact Information Deputy Assistant Director T' Texas Homeland Security State Admin. Agency Texas Department of Public Safety P.O. Box 4087 Austin, TX 78773-0220 H. Points of Contacts. Within 30 calendar days of any change, Sub -recipient shall notify DPS/THSSAA of any change or correction to the chief elected official, program, and/or financial points of contact in the DPS/THSSAA grant management system. I. DUNS Number. Sub -recipient confirms its Data Universal Numbering Systems (DUNS) Number is the number listed on this Grant. The DUNS Number is the nine digit number established and assigned by Dun and Bradstreet, Inc., at 866/705-5711 or http://fedgov,dnb.com/webform. J. Central Contractor Registration and niversal Identifier Reauirements. Sub -recipient maintains that it has registered on the System for Award Management (SAM) at www.sam.gov or other federally established site for contractor registration, and entered DPS/THSSAA-required information. Sub -recipient shall keep current, and then review and update the information at least annually. Sub -recipient shall keep information current in the SAM database until the later of when it submits this Grants final financial report or receives final Grant award payment. Sub -recipient agrees that it shall not make any subaward agreement or contract related to this Grant without first obtaining the vendor/subawardee's mandatory DUNS number. See Section .210 of OMB Circular A-133, Audits of States, Local Governments, and Non-profit Organizations. K. Indirect Cost Allocation Plan, Sub -recipient shall submit its most recently approved Indirect Cost Allocation Plan signed by Cognizant Agency to DPS/THSSAA within 30 calendar days of the approval. "Cognizant agency" means the Federal agency responsible for reviewing. negotiating, and approving cost allocation plans or indirect cost proposals developed under 2 C.F.R. Part 225 on behalf of all Federal agencies. OMB publishes a listing of cognizant agencies at http://harvester,census.gov/sac/dissem/asp/reports.aso. Unless the basis of the cost plan changes, Sub -recipient only needs to forward the annual Indirect Cost Rate approval letter to DPS/THSSAA within 30 calendar days after approval by the Cognizant Agency. The approved Indirect Cost Plans and approval letters shall be emailed to SM RFMdos.texas.gov. The Sub -recipient name shall be included in the file name and subject line of the email transmittal. L. Reporting Total Compensation of Sub -recipient Executives. 2 C.F.R. §170.320; see FEMA Information Bulletin 350. 1. Applicability and what to report: Sub -recipient shall report whether Sub -recipient received $25 million or more in Federal procurement contracts or financial assistance subject to the Transparency Act per 2 C.F.R. §170.320. Sub -recipient shall report whether 80% or more of Sub -recipient's annual gross revenues were from Federal procurement contracts or Federal financial assistance. If Sub -recipient answers "yes" to both questions, Sub -recipient shall report, along with Sub -recipient's DUNS number, the names and total compensation (see 17 C.F.R. §229.402(c)(2)) for each of Sub -recipient's five most highly compensated executives for the preceding completed fiscal year. 2. Where and when to report: Sub -recipient shall report executive total compensation at www.sam.aov or other federally established replacement site. By signing this Grant, Sub -recipient certifies that, if required, Sub -recipient's jurisdiction has already registered, entered the required information, and shall keep information in the SAM database current, and update the information at least annually for each year until the later of when the jurisdiction submits its final financial report or receives final payment. Sub -recipient agrees that it shall not make any subaward agreement or contract without first obtaining the subawardee's mandatory DUNS number. M. Direct Deposit. If Sub -recipient has not received HSGP or NSGP reimbursements from DPS/THSSAA within the past eleven (11) months (prior to date of award), it shall forward a new/updated direct deposit form to DPS/THSSAA. Completed direct deposit forms from Sub -recipient shall be emailed to SAA RR(a)dos.texas.gov. The email subject line and attachment name shall include the jurisdiction name and identify the document attached (i.e. "Sample County DD form"). The direct deposit form is currently available at http://www,window.state.tx.us/taxinfo/taxforms/74-176.pdf. Sub -recipient may simultaneously sign up for the Advance Payment Notification (APN) email feature which provides State of Texas payees with a one -business -day advance notice that a direct deposit payment has been sent to its financial institution. After receiving an APN, a payee may securely access its payment details online. N. Procurements. Sub -recipient shall comply with all applicable federal, state, and local laws and requirements, including but not limited to proper competitive solicitation processes where required, for any procurement which utilizes federal funds awarded under this Grant in accordance with 44 C.F.R. §13.36. O. Contract Provisions. All contracts executed using funds awarded under this Grant shall contain the contract provisions listed under 44 C.F.R. §13.37(b), Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. P. No Contracts with Debarred or Suspended Parties. Prior to contracting with any vendor or subawardee using funds awarded under this Grant, Sub -recipient shall determine whether the vendor/subawardee is debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded by any federal department and agency and shall confirm the vendor/subawardee does not have any active "Exclusions" by reviewing the vendor/subawardee entity information at httos://www.sam.gov/portal/public/SAM/. Q. Management and Administration. If this Grant includes a specific award of funds to Sub -recipient for management and administration (M&A), Sub -recipient shall comply with all applicable requirements and limitations with respect to M&A. For additional information on M&A, refer to Information Bulletin 365 located at http://www.fema.gov/grants/grant-proarams-directorate-information-bulletins. R. Personnel Cap. Up to fifty percent (50%) of all HSGP awards received by Sub -recipient may be used for personnel and personnel -related activities as directed by the Personnel Reimbursement for Intelligence Cooperation and Enhancement (PRICE) of Homeland Security Act (Public Law 110-412). In general, use of HSGP funding to pay for staff and/or contractor regular time or overtime/backfill, among other items, are considered personnel -related costs. Sub -recipient may request a waiver to the 50% personnel cap by submitting a waiver request through its respective regional council or urban area working group to DPS/THSSAA at SAAados.texas.aov. Requests for waivers shall be submitted on official Sub -recipient letterhead and be signed by an authorized official of Sub -recipient. Waivers shall contain the information required on page 9 of the FEMA Information Bulletin 379. S. Property Management and Inventory. At least every two (2) years, Sub -recipient shall take a physical inventory and shall reconcile the results with property records. Sub -recipient shall maintain property/inventory records which, at minimum, shall include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, the cost of the property, the percentage of Federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (See sample equipment inventory record format at htto://www.txdos.state.tx.us/director staff/saa/audit and comnliance.htm ) Sub -recipient shall develop and implement a control system to prevent loss, damage or theft of property and Sub -recipient shall investigate and document any loss, damage or theft of property funded under this Grant. T. Publications. All publications produced as a result of funding under this Grant, which are submitted for publication in any magazine, journal, or trade paper, shall include the following statement: This material is based upon work supported by the U.S. Department of Homeland Security. The views and conclusions contained in this document are those of the authors and should not be interpreted as necessarily representing the official policies, either expressed or implied, of the U.S. Department of Homeland Security." U. Acknowledgement of Federal Funding from DHS. Sub -recipient shall comply with requirements to acknowledge use of Federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with Federal funds. V. Use of DHS. DPS. and DPS/THSSAA Seals and Non -Endorsement. Sub -recipient shall obtain DHS, DPS, or DPS/THSSAA's prior written approval before using any of these agencies' seal(s), logos, crests or reproductions of flags or likenesses of agency officials. Funding of this Grant does not equate to endorsement of use of funding agencies' seals, logos, crests, etc., including use of the United States Coast Guard seal, logo, crests, or reproductions of flags or likenesses of Coast Guard officials. W. Coovrioht. Sub -recipient shall comply with requirements regarding publications or other exercise of copyright for any work first produced under Federal financial assistance awards hereto related unless the work includes any information that is otherwise controlled by the Government (e.g., classified information or other information subject to national security or export control laws or regulations). For any scientific, technical, or other copyright work based on or containing data first produced under this Grant, including those works published in academic, technical or professional journals, symposia proceedings, or similar works, Sub -recipient grants the Govemment a royalty -free, nonexclusive and irrevocable license to reproduce, display, distribute copies, perform, disseminate, or prepare derivative works, and to authorize others to do so, for Government purposes in all such copyrighted works. Sub -recipient shall affix the applicable copyright notices of 17 U.S.C. §401 or 402 and an acknowledgment of Government sponsorship (including award number) to any work first produced under this Grant. Further, Sub -recipient acknowledges that FEMA National Preparedness Directorate reserves a royalty -free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use, and authorize others to use, for govemment purposes: (1) the copyright in any work developed under an award or sub -award; and (2) any rights of copyright to which a recipient or Sub -recipient purchases ownership with Federal support. Sub -recipient agrees to consult with DPS/THSSAA regarding the allocation of any patent rights that arise from or are purchased with this funding. X. Quarterly Performance Reports. Sub -recipient shall submit performance reports and progress reviews per DPS/THSSAA and/or FEMA's direction. Reports are entered into the grants management system. Performance reports are due by the twentieth (20th) calendar day after the end of each calendar quarter: January 20, April 20, July 20 and October 20; or as otherwise specified or required by DPS/THSSAA. DPS/THSSAA may require other reports or different timelines to meet federal reporting dates or to respond to information requests. Failure to timely complete a performance report will result in Sub -recipient being unable to request additional reimbursements/advances and may affect future funding. Y. Site Visits. DHS and/or DPS/THSSAA, through its authorized representatives, have the right, at all reasonable times to make site visits to review project accomplishments and management control systems and to provide such technical assistance as may be required. If any site visit is made by DHS on the premises of Sub -recipient or a contractor under this Grant, Sub -recipient shall provide and shall require its contractors to provide all reasonable facilities and assistance for the safety and convenience of the government representatives in the performance of their duties. All site visits and evaluations shall be performed in such a manner that will not unduly delay the work. Z. Limited English Proficiency (Civil Rights Act of 1964. Title VI). Sub -recipient shall comply with the Title VI of the Civil Rights Act of 1964 (Title VI) prohibition against discrimination on the basis of national origin, which requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services. Providing meaningful access for persons with LEP may entail providing language assistance services, including oral interpretation and written translation. In order to facilitate compliance with Title VI, Sub -recipient is encouraged to consider the need for language services for LEP persons served or encountered in developing program budgets. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency(August 11, 2000), requires federal agencies to issue guidance to recipients of federal financial assistance, assisting such organizations and entities in understanding their language access obligations. DHS published the required guidance in April 2011, DHS Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, 76 Fed. Reg. 21755-21768 (April 18, 2011). The Guidance provides helpful information such as how a recipient of federal financial assistance can determine the extent of its obligation to provide language services; selecting language services; and elements of an effective plan on language assistance for LEP persons. For additional assistance and information regarding language access obligations, please refer to the DHS Recipient Guidance at httos://www.dhs.aov/guidance-published-help-department-supported-organizations-provide-meaningful-access-people-limited and additional resources on htto://www.leo.aov. AA. Protection of Human Subiects. Sub -recipient shall comply with the requirements of the Federal regulations at 45 C.F.R. Part 46, which requires that Sub -recipients comply with applicable provisions/law for the protection of human subjects for purposes of research. Sub -recipient shall comply with the requirements in DHS Management Directive 026-04, Protection of Human Subjects, prior to implementing any work with human subjects. For purposes of 45 C.F.R. Part 46, research means a systematic investigation, including research, development, testing, and evaluation, designed to develop or contribute to general knowledge. Activities that meet this definition constitute research for purposes of this policy, whether or not they are conducted or supported under a program that is considered research for other purposes. The regulations specify additional protections for research involving human fetuses, pregnant women, and neonates (Subpart B); prisoners (Subpart C), and children (Subpart D). The use of autopsy materials is governed by applicable State and local law and is not directly regulated by 45 C.F.R. Part 46. BB. National Flood Insurance Act of 1968. Sub -recipient shall comply with the requirements of Section 1306(c) of the National Flood Insurance Act, as amended, which provides for benefit payments under the Standard Flood Insurance Policy for demolition or relocation of a structure insured under the Act that is located along the shore of a lake or other body of water and that is certified by an appropriate State or local land use authority to be subject to imminent collapse or subsidence as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels. These regulations are codified at 44 C.F.R. Part 63. CC. USA Patriot Act of 2001. Sub -recipient shall comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. §§175-175c. Among other things, it prescribes criminal penalties for possession of any biological agent, toxin, or delivery systems of a type or in a quantity that is not reasonably justified by a prophylactic, protective, bona fide research, or other peaceful purpose. The Act also establishes restrictions on access to specified materials. "Restricted persons," as defined by the Act, may not possess, ship, transport, or receive any biological agent or toxin that is listed as a select agent. DD. Flv America Act of 1974. Sub -recipient shall comply with the requirements of the Preference for U.S. Flag Air Carriers: Travel supported by U.S. govemment funds requirement, which states preference for the use of U.S. flag air carriers (air carriers holding certificates under 49 U.S.C. §41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. §40118) and the interpretive guidelines issued by the Comptroller General of the United States in the March 31, 1981 amendment to Comptroller General Decision B138942. EE. Activities Conducted Abroad. Sub -recipient shall comply with the requirements that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained. FF. Trafficking Victims Protection Act of 2000. All recipients of financial assistance shall comply with the requirements of the government -wide award term which implements Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. § 7104), located at 2 C.F.R. Part 175. This is implemented in accordance with OMB Interim Final Guidance, Federal Register, Volume 72, No. 218, November 13, 2007. In accordance with the statutory requirement, in each agency award under which funding is provided to a private entity, Section 106(g) of the TVPA, as amended, requires the agency to include a condition that authorizes the agency to terminate the award, without penalty, if the recipient or a sub -recipient: (a) engages in severe forms of trafficking in persons during the period of time that the award is in effect; (b) procures a commercial sex act during the period of time that the award is in effect; or (c) uses forced labor in the performance of the award or subawards under the award. DPS/THSSAA is authorized to terminate this Grant ,without penalty, if the above condition is violated. Sub -recipient shall include this condition in any subawards or contracts it makes as a result of this Grant. Full text of the award term is provided at 2 C.F.R. §175.15. GG. Americans with Disabilities Act of 1990. Sub -recipient shall comply with the requirements of Titles I, II, and III of the Americans with Disabilities Act, which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities. 42 U.S.C. §§ 12101-12213. HH. Public Dissemination of Sensitive Information. Sub -recipient shall notify DPS/THSSAA of any workshops, conferences, seminars or other public venues at least one hundred (100) calendar days before presenting any potentially sensitive information regarding this project. No sensitive information may be presented by Sub -recipients' personnel without DPS/THSSAA and the DHS Grants Officer's review and prior written approval. II. Security ConcernsNiolations. Sub -recipient shall inform the THSSAA's Deputy Assistant Director in writing within two (2) calendar days of Sub -recipient being made aware of any security concerns with individuals having access to government facilities or sensitive information. In the event that sensitive information is divulged in violation of Sub -recipient's security procedures, Sub -recipient shall immediately notify the DPS/THSSAA Deputy Assistant Director and take appropriate law enforcement and legal action. JJ. SAFECOM. Sub -recipient shall comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications for awards under this Grant that provide emergency communication equipment and its related activities. KK. Best Practices for Collection and Use of Personally Identifiable Information (PII).Sub-recipients who collect Personally Identifiable Information (PII) shall have a publically-available privacy policy that describes what PII it collects, how it uses the PII, whether it shares PII with third parties, and how individuals may have their PII corrected where appropriate. Sub -recipients may also find as a useful resource the DHS Privacy Impact Assessments: htto://www.dhs.gov/xlibrary/assets/privacv/Drivacv Dia guidance iune2010.odf and httD://www.dhs.gov/xlibrarv/assets/privacv/Drivacv Dia temDlate.pdf LL. Hotel and Motel Fire Safety Act of 1990. In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, 15 U.S.C. §2225(a), Sub -recipient shall ensure that all conference, meeting, convention, or training space funded in whole or in part with Federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, 15 U.S.C. §2225. MM. False Claims Act and Program Fraud Civil Remedies. Sub -recipient shall comply with the requirements of 31 U.S.C. §3729 which sets forth that no recipient of federal payments shall submit a false claim for payment. See also 38 U.S.C. §3801-3812 which details the administrative remedies for false claims and statements made. NN. Duolication of Benefits. State, Local and Tribal Sub -recipients shall comply with 2 C.F.R. Part §225, Appendix A, Paragraph (C)(3)(c), which provides that any cost allocable to a particular Federal award or cost objective under the principles provided for in this authority may not be charged to other Federal awards to overcome fund deficiencies. 00. Debarment and Suspension. Sub -recipient shall comply with Executive Order 12549 and 12689, which provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. PP. Non -Supplanting Reauirement. Sub -recipient shall not replace (supplant) funds that have been budgeted for the same purpose through non -Federal sources for programs that prohibit supplanting by law. Where federal statutes for a particular program prohibit supplanting, Sub -recipient may be required to demonstrate and document that a reduction in non -Federal resources occurred for reasons other than the receipt or expected receipt of Federal funds. 11. Other Requirements A. During the performance period of this Grant, Sub -recipient, counties, cities, towns, and Indian tribes shall maintain an Emergency Management Plan at the Intermediate Level of planning preparedness or higher, as prescribed by the Texas Division of Emergency Management (TDEM). This may be accomplished by a jurisdiction maintaining its own emergency management plan or participating in an inter -jurisdictional emergency management program that meets the required standards. If TDEM identifies deficiencies in Sub -recipients plan, Sub -recipient shall correct deficiencies within 60 calendar days of receiving notice of such deficiencies from TDEM. B. Projects identified and approved in the DPS/THSSAA web -based grant management system must identify and relate to the goals and objectives indicated by the applicable approved project investments for the period of performance of this Grant. Sub -recipient shall submit project plans, milestones, outputs/outcomes, narratives and budget to DPS/THSSAA and FEMA (if required) for approval prior to expending or requesting advances of any funds for this Grant. Sub -recipient shall enter appropriate project milestones into the DPS/THSSAA web -based grants management system within 60 days after award or by the deadline established by DPS/THSSAA, whichever is sooner. Sub -recipient shall report on project status and accomplishments (milestones and outputs/outcomes) in the formats) and timeframes as required by DPS/THSSAA. C. During the performance period of this Grant, Sub -recipient shall: 1. Participate in a legally -adopted county and/or regional mutual aid agreement. 2. Implement the National Incident Management System (NIMS) in a manner consistent with the NIMS Implementation Objectives outlined by FEMA at htta://www.fema.aov/national-incident-management-system. 3. Be a registered user of the Texas Regional Response Network (TRRN) (or other response asset inventory management system specified by DPS/THSSAA) and shall identify, resource type, and credential all major deployable resources such as vehicles and trailers, equipment costing $5,000 or more, and specialized teams/response units equipped and/or trained using Grant funds (i.e., hazardous material, decontamination, search and rescue, etc.). This registration is to ensure jurisdictions or organizations are prepared to make Grant funded resources available to other jurisdictions through mutual aid htto://www.fema.aov/emeroencv/nims/ResourceMnamnt.shtm#item3. 12. Monitoring Sub -recipient will be monitored periodically by federal, state or local entities, both programmatically and financially, to ensure that project goals, objectives, performance requirements, timelines, milestone completion, budget, and other program -related criteria are met. DPS/THSSAA, or its authorized representative, reserves the right to perform periodic desk/office-based and/or on-site monitoring of Sub -recipient's compliance with this Grant and of the adequacy and timeliness of Sub -recipient's performance pursuant to this Grant. After each monitoring visit, DPS/THSSAA shall provide Sub -recipient with a written report of the monitor's findings. If the monitoring report notes deficiencies in Sub -recipient's performance under this Grant, the monitoring report shall include requirements for the timely correction of such deficiencies by Sub -recipient. Failure by Sub -recipient to take action specified in the monitoring report may be cause for suspension or termination of this Grant pursuant to the Suspension and/or Termination Section herein. 13. Audit A. Audit of Federal and State Funds. Sub -recipient shall arrange for the performance of an annual financial and compliance audit of funds received and performances rendered under this Grant as required by the Single Audit Act (OMB Circular A — 133; 44 C.F.R. 13.26). B. Sub -recipient shall comply, as applicable, with Texas Government Code, Chapter 783, the Uniform Grant Management Standards (UGMS), the State Uniform Administrative Requirements for Grants and Cooperative Agreements. C. Right to Audit. Sub -recipient shall give the United States Department of Homeland Security (DHS), the Comptroller General of the United States, the Texas State Auditor, DPS/THSSAA, or any of their duly authorized representatives, access to and the right to conduct a financial or compliance audit of Grant funds received and performances rendered under this Grant. Sub -recipient shall permit DPS/THSSAA or its authorized representative to audit Sub -recipient's records. Sub -recipient shall provide any documents, materials or information necessary to facilitate such audit. D. Sub -recipient's Liability for Disallowed Costs. Sub -recipient understands and agrees that it shall be liable to DPS/THSSAA for any costs disallowed pursuant to any financial or compliance audit(s) of these funds. Sub -recipient further understands and agrees that reimbursement to DPS/THSSAA of such disallowed costs shall be paid by Sub -recipient from funds that were not provided or otherwise made available to Sub -recipient pursuant to this Grant or any other federal contract. E. Sub -recipient's Facilitation of Audit. Sub -recipient shall take such action to facilitate the performance of such audit(s) conducted pursuant to this Section as DPS/THSSAA may require of Sub -recipient. Sub -recipient shall ensure that this clause concerning the authority to audit funds received indirectly by subcontractors through Sub -recipient and the requirement to cooperate is included in any subcontract it awards. F. State Auditor's Clause. Sub -recipient understands that acceptance of funds under this Grant acts as acceptance of the authority of the State Auditor's Office to conduct an audit or investigation in connection with those funds. Sub -recipient further agrees to cooperate fully with the State Auditor's Office in the conduct of the audit or investigation, including providing all records requested. Sub -recipient shall ensure that this clause concerning the State Auditor's Office's authority to audit funds and the requirement to cooperate fully with the State Auditor's Office is included in any subgrants or subcontracts it awards. Additionally, the State Auditor's Office shall at any time have access to and the rights to examine, audit, excerpt, and transcribe any pertinent books, documents, working papers, and records of Sub -recipient relating to this Grant. 14. Retention and Accessibility of Records A. Retention of Records. Sub -recipient shall maintain fiscal records and supporting documentation for all expenditures of this Grant's funds pursuant to the applicable OMB Circular, 44 C.F.R. Section 13.42, UGMS §_.42, and this Grant. Sub -recipient shall retain these records and any supporting documentation for a minimum of three (3) years from the later of the completion of this project's public objective, submission of the final expenditure report, any litigation, dispute, or audit. Records shall be retained for three (3) years after any real estate or equipment final disposition. The DHS or DPS/THSSAA may direct Sub -recipient to retain documents or to transfer certain records to DHS custody when DHS determines that the records possess long term retention value. B. Access to Records. Sub -recipient shall give the United States Department of Homeland Security, the Comptroller General of the United States, the Texas State Auditor, DPS/THSSAA, or any of its duly authorized representatives, access to and the right to examine all books, accounts, records, reports, files, other papers, things or property belonging to or in use by Sub -recipient pertaining to this Grant including records concerning the past use of DHS/FEMA funds. Such rights to access shall continue as long as the records are retained by Sub -recipient. Sub -recipient shall maintain such records in an accessible location and provide citizens reasonable access to such records consistent with the Texas Public Information Act, Texas Government Code, Chapter 552. Gan.—cr ,e C. Inclusion in Subcontracts. Sub -recipient shall include the substance of this in all subcontracts. D. After Action Reporting. Sub -recipient shall complete, deliver to the appropriate source, and retain copies of all after -action reports and certificates of completion for all training and exercises paid for by this Grant. 15. Legal Authority A. Signatory Authority. Sub -recipient assures and guarantees that Sub -recipient possesses the legal authority to enter into this Grant, receive Grant funds and to perform the project Sub -recipient has obligated itself to perform pursuant to this Grant. B. Authorized Representative. The person or persons signing and executing this Grant on Sub -recipients behalf do warrant and guarantee that he/she has been duly authorized by Sub -recipient to execute this Grant on Sub -recipients behalf and to validly and legally bind Sub -recipient to all terms and conditions and performance obligations. C. Conflicts in Requirements. If conflict exists between federal, state, or local requirements, Sub -recipient shall comply with the strictest requirement. 16. Notice of Litigation and Claims Sub -recipient shall give DPS/THSSAA immediate notice in writing of any action or claim, including any proceeding before an administrative agency, filed against Sub -recipient arising out of performance of this Grant. Except as otherwise directed by DPS/THSSAA, Sub -recipient shall furnish immediately to DPS/THSSAA copies of all documentation or pleadings received by Sub -recipient with respect to such action or claim. 17. No Liability for Employees and Officers DPS/THSSAA shall have no liability whatsoever for the actions or omissions of an individual employed or contracted by Sub -recipient, regardless of where the individual's actions or omissions occurred. 18. Non -Waiver of Defaults Any failure of DPS/THSSAA, at any time, to enforce or require the strict keeping and performance of any provision of this Grant shall not constitute a waiver of such provision, and shall not affect or impair same or the right of DPS/THSSAA at any time to avail itself of same. A waiver does not become effective unless DPS/THSSAA expressly agrees to such waiver in writing. Any payment by DPS/THSSAA shall not constitute a waiver or otherwise impair or prejudice any right, power, privilege, or remedy available to DPS/THSSAA to enforce its rights, as such rights, powers, privileges, and remedies are specifically preserved. 19. Changes and Amendments A. Modification. FEMA or DPS/THSSAA may modify this Grant after an award has been made. Once notification has been made in writing, any subsequent request for funds indicates Sub -recipient's acceptance of the changes to this Grant. Any alteration, addition, or deletion to this Grant by Sub -recipient is not valid. B. Written Amendment. Alterations, additions or deletions to this Grant, such as changes to period of performance and award amounts, shall be made through an executed Grant Adjustment Notice (GAN). C. Authority to Amend. During the period of performance for this Grant, DPS/THSSAA and/or FEMA may issue policy directives that serve to establish, interpret or clarify this Grant's performance requirements. Such policy directives shall be promulgated by DPS/THSSAA or FEMA in the form of Information Bulletins and Sub -recipient Manuals and shall have the effect of modifying this Grant and shall be binding upon Sub -recipient as if written in this Grant. D. Effect of Changes in Federal and State Laws. Any alterations, additions, or deletions to this Grant that are required by changes in federal and state laws or regulations are automatically incorporated into this Grant without written amendment to this Grant and shall become effective upon the date designated by such law or regulation. In the event FEMA or DPS/THSSAA determines that changes are necessary to this Grant after an award has been made, including changes to the period of performance or terms and conditions, Sub -recipient shall be notified of the changes in writing. Once notification has been made, any subsequent request for funds will indicate Sub -recipient's acceptance of the changes to this Grant. 20. Headings Headings and captions of this Grant are only for convenience and reference. These headings and captions shall not affect or modify the terms and conditions or be used to interpret or assist in the construction of this Grant. 21. Venue Venue shall lie in Travis County, Texas, and this Grant is governed by the laws of the State of Texas. 22. Suspension In the event Sub -recipient fails to comply with any term of this Grant, DPS/THSSAA may, upon written notification to Sub -recipient, suspend this Grant, in whole or in part, withhold payments to Sub -recipient and prohibit Sub -recipient from incurring additional obligations of this Grant's funds. 23. Termination DPS/THSSAA shall have the right to terminate this Grant, in whole or in part, at any time before the end of the Performance Period, if DPS/THSSAA determines that Sub -recipient has failed to comply with any term of this Grant. DPS/THSSAA shall provide written notice of the termination and include: 1. The reason(s) for such termination; 2. The effective date of such termination; and 3. In the case of partial termination, the portion of this Grant to be terminated. Appeal may be made to the Deputy Director of Homeland Security, Texas Department of Public Safety. 24. Enforcement If Sub -recipient materially fails to comply with any term of this Grant, whether stated in a federal or state statute or regulation, an assurance, in a state plan or application, a notice of award, or elsewhere, DPS/THSSAA or DHS may take one or more of the following actions, as appropriate in the circumstances - 1. Temporarily withhold cash payments pending correction of the deficiency by Sub -recipient or more severe enforcement action by DPS/THSSAA or DHS; 2. Disallow or deny use of funds and matching credit for all or part of the cost of the activity or action not in compliance; 3. Wholly or partially suspend or terminate this Grant for Sub -recipient's program. 4. Withhold further awards for the program; or 5. Take other remedies that may be legally available. In taking an enforcement action, DPS/THSSAA will provide Sub -recipient an opportunity for a hearing, appeal, or other administrative proceeding to which Sub -recipient is entitled under any statute or regulation applicable to the action involved. The costs of Sub -recipient resulting from obligations incurred by Sub -recipient during a suspension or after termination of this Grant are not allowable unless DPS/THSSAA or DHS expressly authorizes them in the notice of suspension or termination or subsequently. Other Sub -recipient costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: 1. The costs result from obligations which were properly incurred by Sub -recipient before the effective date of suspension or termination. are not in anticipation of it, and in the case of a termination, are non -cancellable; and 2. The costs would be allowable if this Grant were not suspended or expired normally at the end of the funding period in which the termination takes effects. The enforcement remedies identified in this section, including suspension and termination, do not preclude Sub -recipient from being subject to "Debarment and Suspension" under E.O. 12549. 44 C.F.R. §13.35. 25. Conflict of Interest No employee, officer or agent of Sub -recipient shall participate in the selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, is involved or otherwise creates the appearance of impropriety. 26. Closing of this Grant A. DPS/THSSAA will close a sub -award after receiving Sub -recipient's final quarterly performance report indicating that all approved work has been completed and all funds have been disbursed, completing a review to confirm the accuracy of the reported information, and reconciling actual costs to award modifications and payments. If the close out review and reconciliation indicates that Sub -recipient is owed additional funds, DPS/THSSAA will send the final payment automatically to Sub -recipient. If Sub -recipient did not use all the funds received, DPS/THSSAA will issue a GAN to recover the unused funds. Sub -recipient will return the funds to the DPS/THSSAA within 30 calendar days of receiving the GAN. B. At the completion of Sub -recipient's performance period, DPS/THSSAA will de -obligate all uncommitted / unexpended funds. C. The closeout of this Grant does not affect: 1. DHS or DPS/THSSAA's right to disallow costs and recover funds on the basis of a later audit or other review; 2. Sub -recipients obligation to return any funds due as a result of later refunds, corrections, or other transactions; 3. Records retention requirements, property management requirements, and audit requirements, as set forth herein; and 4. Any other provisions of this Grant that impose continuing obligations on Sub -recipient or that govern the rights and limitations of the parties to this Grant after the expiration or termination of this Grant. Please fill in the appropriate information and certify by signing below that you have read, understood, and agree to the terms of this Grant. Print Name of Authorized Official Title Mayor Nelda Martinez Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date Oana 1 t f1F 1 A EXHIBIT A ASSURANCES - NON -CONSTRUCTION PROGRAMS See Standard Form 424B As the duly authorized representative of Sub -recipient, I certify that Sub -recipient 1. Has the legal authority to apply for Federal assistance and the institutional, managerial and financial capability (including funds sufficient to pay the non -Federal share of project cost) to ensure proper planning, management and completion of the project described in this Grant. 2. Will give the Department of Homeland Security, the Department of Public Safety, the Comptroller General of the United States and, if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to this Grant and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain. 4. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 5. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763) relating to prescribed standards for merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F). 6. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686 and 44 C.F.R. Part 19), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee- 3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which agreement for Federal assistance is being made; and, (j) the requirements of any other nondiscrimination statute(s) which may apply to the application. 7. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally -assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 8. Will comply, as applicable, with provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. 9. Will comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for federally -assisted construction sub -agreements. 10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. 11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190 as amended by 42 U.S.C. 4311 et seq. and Executive Order (EO) 11514) which establishes national policy goals and procedures to protect and enhance the environment, including protection against natural disasters. To comply with NEPA for DHS grant -supported activities, DHS -FEMA requires the environmental aspects to be reviewed and evaluated before final action on the application (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) comply with the Clean Air Act of 1977, (42 U.S.C. §§7401 et seq. and Executive Order 11738) providing for the protection of and enhancement of the quality of the nation's air resources to promote public health and welfare and for restoring and maintaining the chemical, physical, and biological integrity of the nation's waters; (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93- 205). 12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. 13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq.). 14. Will comply with P.L. 93-348, 45 C.F.R. 46, and DHS Management Directive 026-044 (Directive) regarding the protection of human subjects involved in research, development, and related activities supported by this Grant. "Research" "means a systematic investigation, including research, development, testing, and evaluation designed to develop or contribute to general knowledge. See Directive for additional provisions for including humans in the womb, pregnant women, and neonates (Subpart B); prisoners (Subpart C); and children (Subpart D). See also state and local law for research using autopsy materials. 15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) which requires the minimum standards of care and treatment for vertebrate animals bred for commercial sale, used in research, transported commercially. or exhibited to the public according to the Guide for Care and Use of Laboratory Animals and Public Health Service Policy and Government Principles Regarding the Care and Use of Animals 16. Will comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures. 17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, "Audits of States, Local Governments, and Non -Profit Organizations." 18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations, grant guidanceand policies governing this Grant. Please fill in the appropriate information and sign to certify this Exhibit A. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date Page 13 OF 18 EXHIBIT B ASSURANCES - CONSTRUCTION PROGRAMS See Standard Form 424D As the duly authorized representative of Sub -recipient, I certify that Sub -recipient 1. Has the legal authority to apply for Federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non -Federal share of project costs) to ensure proper planning, management and completion of project described in this Grant. 2. Will give the Department of Homeland Security, the Department of Public Safety, the Comptroller General of the United States and, if appropriate, the State, the right to examine all records, books, papers, or documents related to this Grant and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will not dispose of, modify the use of, or change the terms of the real property title or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the Federal awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with Federal assistance funds to assure nondiscrimination during the useful life of this Grant. 4. Will comply with the requirements of the assistance awarding agency with regard to the drafting, review and approval of construction plans and specifications. 5. Will provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms with the approved plans and specifications and will furnish progressive reports and such other information as may be required by the awarding agency or State. 6. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 7. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain. 8. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763) relating to prescribed standards of merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F). 9. Will comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures. 10. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681 1683, and 1685-1686 and 44 C.F.R. Part 19), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29) U.S.C. §794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statue(s) under which agreement for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statue(s) which may apply to the agreement. 11. Will comply, or has already complied, with the requirements of Titles ll and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal and federally -assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 12. Will comply with the provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. 13. Will comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327- 333) regarding labor standards for federally -assisted construction sub -agreements. 14. Will comply with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. 15. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91- 190) as amended by 42 U.S.C. 4311 et seq. and Executive Order (EO) 11514 which establishes national policy goals and procedures to protect and enhance the environment, including protection against natural disasters; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) comply with the Clean Air Act of 1977, (42 U.S.C. §§7401 et seq. and Executive Order 11738) providing for the protection of and enhancement of the quality of the nation's air resources to promote public health and welfare and for restoring and maintaining the chemical, physical, and biological integrity of the nation's waters;(g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205). 16. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. Dane 14 OF IA 17. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq). 18. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, "Audits of States, Local Governments, and Non -Profit Organizations." 19. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations, grant guidance and policies governing this Grant. Please fill in the appropriate information and sign to certify this Exhibit B, if applicable. Print Name of Authorized Official Title Mayor Nelda Martinez Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date Page 15 OF 18 Exhibit C Certifications The undersigned, as the authorized official, certifies the following to the best of his/her knowledge and belief. A. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee or a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee or a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL Disclosure of Lobbying Activities, in accordance with its instructions. C. The undersigned shall require that the language of this certification prohibiting lobbying be included in the award documents for all sub -awards at all tiers (including subcontracts, sub -grants, and contracts under grants, loans, and cooperative agreements) and that all sub -recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. D. As required by Executive Order 12549, Debarment and Suspension, and implemented at 28 C.F.R. Part 67, for prospective participants in primary covered transactions, as defined at 28 C.F.R. Part 67, Section 67.510 (Federal Certification). The Sub -recipient certifies that it and its principals and vendors: 1. Are not debarred, suspended, proposed for debarment, declared ineligible, sentenced to a denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered transactions by any Federal department or agency. Sub -recipient can access debarment information by going to www.sam.aov and the State Debarred Vendor List htto://www.window.state.tx.us/procurement/proa/vendor performance/debarred. 2. Have not within a three-year period preceding this Grant been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (D)(2) of this certification; 4. Have not within a three-year period preceding this Grant had one or more public transactions (Federal, State, or local) terminated for cause or default; or 5. Where Sub -recipient is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this Grant. (Federal Certification) E. Federal funds will be used to supplement existing funds, and will not replace (supplant) funds that have been appropriated for the same purpose. Sub -recipient may be required to supply documentation certifying that a reduction in non-federal resources occurred for reasons other than the receipt or expected receipt of federal funds. F. Sub -recipient will comply with 2 C.F.R. Part 180, Subpart C as a condition of receiving grant funds, and Sub -recipient will require such compliance in any sub -grants or contract at the next tier. G. Sub -recipient will comply with the Drug-free Workplace Act, as amended, 412 U.S.C. §701 et seq. — which requires Sub -recipient to publish a statement about its drug-free workplace program and give a copy of the statement to each employee (including consultants and temporary personnel) who will be involved in award -supported activities at any site where these activities will be carried out. Also, places where work is being performed under the award (i.e., street address, city, state, and zip code) must be maintained on file. Sub -recipient will notify the Grants Officer of any employee convicted of a violation of a criminal drug statute that occurs in the workplace. For additional information, see 44 C.F.R. Part 17. Sub -recipient shall comply with the requirements of the Drug -Free Workplace Act of 1988, which requires that all organizations receiving grants from any Federal agency agree to maintain a drug-free workplace. H. Sub -recipient is not delinquent on any Federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB CircularA-129 and form SF -424, item number 17 for additional information and guidance. I. Sub -recipient will comply with all applicable requirements of all other federal laws, executive orders, regulations, program and administrative requirements, policies and any other requirements governing this Grant. J. Sub -recipient understands that failure to comply with any of the above assurances may result in suspension, termination or reduction of funds in this Grant. Please fill in the appropriate information and sign to certify this Exhibit C. Print Name of Authorized Official Title Mayor Nelda Martinez Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date Rage 16 OF 16 EXHIBIT D State of Texas Assurances As the duly authorized representative of Sub -recipient, I certify that Sub -recipient: 1. Shall comply with Texas Government Code, Chapter 573, by ensuring that no officer, employee, or member of the Sub -recipient's governing body or of the Sub -recipient's contractor shall vote or confirm the employment of any person related within the second degree of affinity or the third degree of consanguinity to any member of the governing body or to any other officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employment of a person who shall have been continuously employed for a period of two years, or such other period stipulated by local law, prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. 2. Shall insure that all information collected, assembled, or maintained by the Sub -recipient relative to a project will be available to the public during normal business hours in compliance with Texas Government Code, Chapter 552, unless otherwise expressly prohibited by law. 3. Shall comply with Texas Government Code, Chapter 551, which requires all regular, special, or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. 4. Shall comply with Section 231.006, Texas Family Code, which prohibits payments to a person who is in arrears on child support payments. 5. Shall not contract with or issue a license, certificate, or permit to the owner, operator, or administrator of a facility if the Sub -recipient is a health, human services, public safety, or law enforcement agency and the license, permit, or certificate has been revoked by another health and human services agency or public safety or law enforcement agency. 6. Shall comply with all rules adopted by the Texas Commission on Law Enforcement Officer Standards and Education pursuant to Chapter 1701, Texas Occupations Code, or shall provide the grantor agency with a certification from the Texas Commission on Law Enforcement Officer Standards and Education that the agency is in the process of achieving compliance with such rules if the Sub -recipient is a law enforcement agency regulated by Texas Occupations Code, Chapter 1701. 7. Shall follow all assurances. When incorporated into a grant award or contract, standard assurances contained in the application package become terms or conditions for receipt of grant funds. Administering state agencies and sub -recipients shall maintain an appropriate contract administration system to insure that all terms, conditions, and specifications are met. (See UGMS Section _.36 for additional guidance on contract provisions). 8. Shall comply with the Texas Family Code, Section 261.101, which requires reporting of all suspected cases of child abuse to local law enforcement authorities and to the Texas Department of Child Protective and Regulatory Services. Sub -recipient shall also ensure that all program personnel are properly trained and aware of this requirement. 9. Shall comply with all federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352), which prohibits discrimination on the basis of race, color, or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps and the Americans with Disabilities Act of 1990 including Titles I, II, and III of the Americans with Disability Act which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities, 44 U.S.C. §§ 12101-12213; (d) the Age Discrimination Act of 1974, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to the nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental, or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statute(s) which may apply to this Grant. 10. Shall comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for federally assisted construction subagreements. 11. Shall comply with requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (P.L. 91-646), which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 12. Shall comply with the provisions of the Hatch Political Activity Act (5 U.S.C. §§7321-29), which limit the political activity of employees whose principal employment activities are funded in whole or in part with Federal funds. 13. Shall comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act and the Intergovernmental Personnel Act of 1970, as applicable. 14. Shall insure that the facilities under its ownership, lease, or supervision which shall be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify the Federal grantor agency of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA (EO 11738). 15. Shall comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, Public Law 93-234. Section 102(a) requires the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any Federal financial assistance for construction or acquisition proposed for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. Rage 17 OF 18 16. Shall comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved state management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity of federal actions to State (Clear Air) Implementation Plans under Section 176(c) of the Clear Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205). 17. Shall comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.> 18. Shall assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966. as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq.). 19. Shall comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) which requires the minimum standards of care and treatment for vertebrate animals bred for commercial sale, used in research, transported commercially, or exhibited to the public according to the Guide for Care and Use of Laboratory Animals and Public Health Service Policy and Government Principles Regarding the Care and Use of Animals. 20. Shall comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residential structures. 21. Shall comply with the Pro -Children Act of 1994 (Public Law 103-277), which prohibits smoking within any portion of any indoor facility used for the provision of services for children. 22. Shall comply with all federal tax laws and are solely responsible for filing all required state and federal tax forms. 23. Shall comply with all applicable requirements of all other federal and state laws, executive orders, regulations, and policies goveming this program. 24. And its principals are eligible to participate and have not been subjected to suspension, debarment, or similar ineligibility determined by any federal, state, or local governmental entity and it is not listed on a state or federal governments terrorism watch list as described in Executive Order 13224. Entities ineligible for federal procurement have Exclusions listed at httos://www.sam.cov/oortal/oublic/SAM/. 25. Shall adopt and implement applicable provisions of the model HIV/AIDS work place guidelines of the Texas Department of Health as required by the Texas Health and Safety Code, Ann., Sec. 85.001, et seq. Please fill in the appropriate information and sign to certify this Exhibit D. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date Page 18 OF 18 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of Oct. 14, 2014 Second Reading Ordinance for the City Council Meeting Oct. 21, 2014 DATE: September 25, 2014 TO: Ronald L. Olson, City Manager FROM: Robert Rocha, Fire Chief rrocha@cctexas.com (361) 826-3932 2014 Homeland Security Grant Program — State Homeland Security Grant Program (SHSP) Sub -Recipient Award in the Amount of $161,165.00. CAPTION: Ordinance authorizing the Mayor or designee to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $161,165.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program; and appropriating $161,165.00 from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program, into the No. 1062 Fire Grants Fund to carry out homeland security projects that will significantly improve local and regional terrorism prevention, preparedness, response, and recovery capabilities. PURPOSE: These grant funds are used to provide emergency response communities with enhanced capabilities for detecting, deterring, disrupting, preventing, and responding to potential threats of man-made, natural disaster, and acts of terrorism. BACKGROUND AND FINDINGS: The—Texas Department of Public Safety, Texas Homeland Security State Adrrrir stratrve Agency has informed the City of Corpus Christi that our jurisdiction has been awarded a State Homeland Security Program grant in the amount of $161,165.00. Since 2004 the U. S. Department of Homeland Security has annually issued grants to the State of Texas who in turn awards the grants to municipalities through its Homeland Security Program. ALTERNATIVES: If we do not accept the grant award, we will have limited emergency response and security capabilities. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: Council approval of Ordinance is needed to accept and appropriated grant award. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: None FINANCIAL IMPACT: X Operating r Revenue Capital El Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 0 0 Encumbered / Expended Amount 0 0 This item $161,165.00 $161,165.00 BALANCE $161,165.00 $161,165.00 und(s): Fund 1062 Fire Grants Comments: None RECOMMENDATION: Staff recommends approval of this ordinance to execute all documents necessary to accept the grant, and appropriate the funds in the amount of $161,165.00. LIST OF SUPPORTING DOCUMENTS: Ordinance Award Letter Agreement Ordinance Authorizing the Mayor or designee to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $161,165.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program; and appropriating $161,165.00 from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program, into the No. 1062 Fire Grants Fund to carry out homeland security projects that will significantly improve local and regional terrorism prevention, preparedness, response, and recovery capabilities BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: Section 1. The Mayor or designee is authorized to execute all documents necessary to accept a grant from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency in the amount of $161,165.00 for FY 2014 Homeland Security Grant Program, State Homeland Security Program. Section 2. That $161,165.00 is appropriated from the Texas Department of Public Safety/Texas Homeland Security State Administrative Agency, FY 2014 Homeland Security Grant Program, State Homeland Security Program into the No. 1062 Fire Grants Fund to carry out homeland security projects that will significantly improve local and regional terrorism prevention, preparedness, response, and recovery capabilities. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor Texas Department of Public Safety P EX' is _ A T f 44,4y, Ale 2014 Sub -Recipient Award for City of Corpus Christi i 1. General Award Information Reference/Encumbrance No: Date of Award: September 16, 2014 Prepared By: Youngs, Jamie 3. SAA Award Number: 14 -SR 17000-01 4. Sub -Recipient Name and Address 5. Federal Grant Information Mayor Nelda Martinez City of Corpus Christi 1201 Leopord Street Corpus Christi, TX 78401 Federal Grant Title: Homeland Security Grant Program (HSGP) State Homeland Security Program (SHSP) Federal Grant Award Number: EMW-2014-SS-00029 Federal Granting Agency: U.S. Department of Homeland Security(DHS) Federal Emergency Management Agency (FEMA) Date Federal Grant Awarded to TxDPS: August 6, 2014 CFDA: 97.067 6. Award Amount and Grant Breakdowns Grant Period: SHSP From: Sep 1, 2014 To: Jan 31, 2016 $161,165.00 (The SAA must receive all invoices by the end of grant period) 7. Statutory Authority for Grant: The Department of Home Homeland Security Act of 2002 as amended (Public Law 107-296), and Security Appropriations Act, 2014, (Public Law 113-76), and The (6 U.S.C. § 603). S. Method of Payment: Primary method is reimbursement. 9. Debarment/Suspension Certification: The Sub -Recipient are not debarred,suspended, proposed for debarment, declared and do not have active Exclusions listed at https://www.sam.gov/portal/public/SAM/ certifies that the sub -recipient and its contractors/vendors and principals ineligible or voluntarily excluded by any federal department or agency 10. Agency Approvals Approving TxDPS Official: Garry Jones Deputy Assistant Director Texas Homeland Security4 State Administrative Agency Texas Department of Public Safety Signature of TxDPS Official: �' , 11. Sub -Recipient Acceptance I have read, understood and agree to this Sub -Recipient Agreement consisting of this Award and the attached Terms and Conditions. Print name and title of Authorized Sub -Recipient Official: Nelda Martinez Signature of Sub -Recipient Official: Enter Employer Identification Number (EIN) or Federal Tax Identification Number: 74-6000574 DUNS Number: 069457786 Date Signed : DUE DATE: October 31, 2014 Signed Award with Terms and Conditions must be returned to SAA_SRAOdps.texas.gov on or before the due date. 2014 TERMS AND CONDITIONS Instructions: The Sub -recipient shall: 1. Fill in the information and sign the Grant Sub -Recipient Award; 2. Certify they have read and understand these Terms and Conditions, 3. Certify to the statements provided in Exhibits A, 8, C and D located at the back of this document by filling in contact information and signing all exhibits, and 4. Return all documents via email to SAA_SRA©dps.texas.gov on or before the date provided in the transmittal letter and/or in this Grant. 1. Grant Sub -recipient Agreement This Grant Sub -recipient Agreement (consisting of this 2014 Grant Sub -recipient Award and these Terms and Conditions) is made and entered into by and between the Department of Public Safety / Texas Homeland Security State Administrative Agency, an agency of the State of Texas, hereinafter referred to as "DPS/THSSAA," and the funds recipient, hereinafter referred to as the "Sub -recipient" or "Sub -grantee." Furthermore, DPS/THSSAA and the Sub -recipient are collectively hereinafter referred to as the "Parties." This Grant Sub -recipient Agreement (SRA), or otherwise referred to herein as "this Grant" or "this Agreement", is only an offer until Sub -recipient returns the signed copy of this Grant on or before the date provided in the transmittal letter and/or in this Grant Sub -recipient Award. The FY 2014 Homeland Security Grant Program (HSGP) funding plays an important role in the implementation of the National Preparedness System (NPS) by supporting the building, sustainment, and delivery of core capabilities essential to achieving the National Preparedness Goal (NPG) of a secure and resilient Nation. HSGP funding shall be used for statutorily eligible costs related to the planning. organization, equipment, training, and exercise needs that prevent, protect against, mitigate, respond to, and recover from acts of terrorism and other catastrophic events. This program provides an integrated mechanism that builds and sustains core capabilities to support the Nation's Preparedness against terrorist attacks, major disasters, and other emergencies. The FY 2014 Nonprofit Security Grant Program (NSGP) funding plays an important role in the implementation of the National Preparedness System (NPS) by supporting the development and sustainment of core capabilities. Core capabilities are essential for the execution of each of the five mission areas outlined in the NGP. NSGP provides funding support statutorily eligible costs to include target hardening and other physical security enhancements and activities to nonprofit organizations that are at high risk of terrorist attack and located within one of the specific Urban Areas Security Initiative (UASI)-eligible Urban Areas. While this funding is provided specifically to high-risk nonprofit organizations, the program seeks to integrate nonprofit preparedness activities with broader State and local preparedness efforts. It is also designed to promote coordination and collaboration in emergency preparedness activities among public and private community representatives, as well as State and local government agencies. Sub -recipient may not assign or transfer any interest in this Grant without the express, prior written consent of DPS/THSSAA. If Sub -recipient issues subawards as part of this Grant project, Sub -recipient shall include and require its subawardees to comply with the terms and conditions of this Grant. The term "Sub -recipient agreement funds" as used in this Grant means funds provided by DPS/THSSAA under the United States Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA) grant programs (also referred to herein as DHS/FEMA). The term "Sub -recipient's funds" or match funds as used in this Grant means funds provided by the Sub -recipient. 2. Overview and Performance Standards All allocations and use of funds under this Grant shall be in accordance with the FY 2014 Funding Opportunity Announcement (FOA) for the Federal Grant Title specified on this Grant, and such FY 2014 FOA is incorporated by reference herein. Sub -recipient shall read. understand and accept the FY 2014 Funding Opportunity Announcement as binding. A. Standard of Performance. Sub -recipient shall perform all activities and projects entered into the DPS/THSSAA web -based grants management system which are approved by DPS/THSSAA. Any change to a project shall receive prior written approval by the appropriate local, regional and state -level grant administrator(s). Sub -recipient shall perform all activities in accordance with all terms, provisions and requirements set forth in this Grant, including but not limited to the following Exhibits: 1. Assurances — Non -Construction Programs, hereinafter referred to as "Exhibit A" 2. Assurances — Construction Programs, hereinafter referred to as "Exhibit B" 3. Certifications, hereinafter referred to as "Exhibit C" 4. State of Texas Assurances, hereinafter referred to as "Exhibit D" B. Failure to Perform. In the event Sub -recipient fails to implement the project(s) entered and approved in the DPS/THSSAA web -based grants management system, or comply with any provision of this Grant, Sub -recipient shall be liable to DPS/THSSAA for an amount not to exceed the award amount of this Grant and may be barred from applying for or receiving additional DHS/FEMA grant program funds or any other grant program funds administered by DPS until repayment to DPS/THSSAA is made and any other compliance or audit finding is satisfactorily resolved, in addition to any other remedy specified in this Grant. Failure to timely implement projects may reduce future funding in additional DHS/FEMA and/or other grant programs administered by DPS. 3. Environmental Review Sub -recipient shall assess its federally funded projects for potential impact to environmental resources and historic properties. Sub -recipient shall submit any required screening form(s) as soon as possible and shall comply with deadlines established by DPS/THSSAA. Timelines for the Environmental Planning and Historic Preservation (EHP) review process will vary based upon the complexity of the project and the potential for environmental or historical impact. Sub -recipient shall include sufficient review time within its project management plan to comply with EHP requirements. Initiation of any activity prior to completion of FEMA's EHP review will result in a non-compliance finding and DPS/THSSAA will not authorize or release Grant funds for non-compliant projects. Sub -recipient, as soon as possible upon receiving this Grant, shall provide information to DPS/THSSAA to assist with the legally -required EHP review and to ensure compliance with applicable EHP laws and Executive Orders (EO) currently using the FEMA EHP Screening Form OMB Number 1660-0115/FEMA Form 024-0-01 and submitting it, with all supporting documentation, to DPS/THSSAA for review. These EHP requirements include but are not limited to the National Environmental Policy Act, the National Historic Preservation Act, the Endangered Species Act, EO 11988 — Floodplain Management, EO 11990 — Protection of Wetlands, and EO 12898 — Environmental Justice. Sub -recipient shall comply with all Federal, State, and local EHP requirements and shall obtain applicable permits and clearances. See FEMA Information Bulletin 329. Sub -recipient shall not undertake any activity from the project that would result in ground disturbance, facility modification, or purchase and use of sonar equipment without the prior approval of FEMA. These include but are not limited to communications towers, physical security enhancements involving ground disturbance, new construction, and modifications to buildings. Sub -recipient shall comply with all mitigation or treatment measures required for the project as the result of FEMA's EHP review. Any changes to an approved project description will require re-evaluation for compliance with EHP requirements before the project can proceed. If ground disturbing activities occur during project implementation, Sub -recipient shall ensure monitoring of ground disturbance and if any potential archeological resources are discovered, Sub -recipient shall immediately cease construction in that area and notify FEMA and the appropriate State Historical Preservation Office. 4. Funding Obligations A. DPS/THSSAA shall not be liable to Sub -recipient for any costs incurred by Sub -recipient that are not allowable costs. B. Notwithstanding any other provision of this Grant, the total of all payments and other obligations incurred by DPS/THSSAA under this Grant shall not exceed the Total Award Amount listed on the Grant Sub -recipient Award. C. Sub -recipient shall contribute the match funds listed on the Grant Sub -recipient Award. D. Sub -recipient shall refund to DPS/THSSAA any sum of these Grant funds that has been determined by DPS/THSSAA to be an overpayment to Sub -recipient or that DPS/THSSAA determines has not been spent by Sub -recipient in accordance with this Grant. No refund payment(s) shall be made from local, state or federal Grant funds unless repayment with Grant funds is specifically permitted by statute or regulation. Sub -recipient shall make such refund to DPS/THSSAA within thirty (30) calendar days after DPS/THSSAA requests such refund. E. Notwithstanding any other provisions, the Parties hereto understand and agree that DPS/THSSAA's obligations under this Grant are contingent upon the receipt of adequate funds to meet DPS/THSSAA's liabilities hereunder, except as required by the Homeland Security Grant Program (HSGP). DPS/THSSAA shall not be liable to Sub -recipient for costs which exceed the amount specified in this Grant. 5. Performance Period The performance period for this Grant is listed on the Grant Sub -Recipient Award. All goods and services shall be received within the performance period AND all reimbursement requests shall be submitted to DPS/THSSAA within the performance period. Sub -recipient shall have expended all Grant funds Ana submitted reimbursement requests and any invoices in the DPS/THSSAA grant management system by the end of the performance period. DPS/THSSAA shall not be obligated to reimburse expenses incurred or submitted after the performance period. 6. Uniform Administrative Requirements. Cost Principles and Audit Requirements Except as specifically modified by law or this Grant, Sub -recipient shall administer this Grant through compliance with the most recent version of all applicable laws and regulations, including but not limited to DHS program legislation, Federal awarding agency regulations, and the terms and conditions of this Grant. A non-exclusive list is provided below. A. Administrative Requirements 1. 44 C.F.R. Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (the A-102 Common Rule); 2. 2 C.F.R. Part 215, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and Other Non -Profit Organizations (OMB Circular A-110). 3. 44 C.F.R. Part 10, Environmental Considerations B. Cost Principles 1. 2 C.F.R. Part 225, Cost Principles for State, Local and Indian Tribal Governments (OMB Circular A-87) 2. 2 C.F.R. Part 220, Cost Principles for Educational Institutions (OMB Circular A-21) 3. 2 C.F.R. Part 230, Cost Principles for Non -Profit Organizations (OMB CircularA-122) 4. 48 C.F.R. Subpart 31.2, Federal Acquisition Regulations (FAR), Contracts with Commercial Organizations C. Audit Requirements OMB Circular A-133, Audits of States, Local Governments and Non -Profit Organizations. D. Grant Guidance (Funding Opportunity Announcement) Sub -recipient agrees that all allocations and use of funds under this Grant shall be in accordance with the applicable FY 2014 Funding Opportunity Announcement and supplemental resources for the HSGP currently available at http://www.fema.gov/media-Iibrarv-data/1395161200285-5b07ed0456056217175fbdee28d2b06e/FY 2014 HSGP FOA Final.odf and the Nonprofit Security Grant Program (NSGP), http://www.fema.00v/media-Iibrarv-data/1396016700388-fb23d813b8df0d8eab995c8f27c1ac3e/FY 2014 NSGP FOA Final Revised.Ddf. 7. DHS Specific Acknowledgements and Assurances Sub -recipient shall comply with the DHS Standard Administrative Terms and Conditions that are outlined in Part 6.1.1 — Financial Assistance Award Standard Terms and Conditions (January 14, 2011), which is incorporated by reference herein. DHS requires those standard terms and conditions which are approved by the Division of Financial Assistance Policy and Oversight to be applied to all financial assistance awards: http://www.dhs,nov/xlibrarv/assets/cfo-financial-management-Dolicv-manual.pdf. Sub -recipient acknowledges and agrees, and shall require any sub -recipients, subawardees, contractors, successors, transferees, and assignees to acknowledge and agree to comply with applicable provisions governing DHS access to records, accounts, documents, information, facilities, and staff. 1. Sub -recipient shall cooperate with any compliance review or complaint investigation conducted by DHS. 2. Sub -recipient shall give DHS access to and the right to examine and copy records, accounts, and other documents and sources of information related to this Grant and permit access to facilities, personnel, and other individuals and information as may be necessary, as required by DHS regulations and other applicable laws or program guidance. 3. Sub -recipient shall submit timely, complete, and accurate reports to the appropriate DHS officials and maintain appropriate backup documentation to support the reports. 4. Sub -recipient shall comply with all other special reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. 5. If, during the past three (3) years, Sub -recipient has been accused of discrimination on the grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status, Sub -recipient shall provide a list of all such proceedings, pending or completed, including outcome and copies of settlement agreements to the DHS awarding office and the DHS Office of Civil Rights and Civil Liberties. 6. In the event any court or administrative agency makes a finding of discrimination on grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status against Sub -recipient, or Sub -recipient settles a case or matter alleging such discrimination, Sub -recipient shall forward a copy of the complaint and findings to the DHS Component and/or awarding office. The United States has the right to seek judicial enforcement of these obligations. 8. Operation Stonegarden (OPSG) Specific Conditions If Sub -recipient is receiving Operation Stonegarden (OPSG) funds, Sub -recipient is prohibited from obligating or expending OPSG funds provided through this Grant until each unique, specific, or modified county level, tribal or equivalent Operations Order or Fragmentary Order has been reviewed and approved by official notification by FEMA and Customs and Border Protection/Border Patrol (CBP/BP). Each Operations Order will be transferred via the secure portal (CBP/BP) BPETS system from each respective AOR Sector HQ to CBP/BP HQ in Washington, D.C., for review and pre -approval for Operational continuity, then forwarded to FEMA GPD/PGD OPSG Program Office for final review/approval. Official notification of approval will be sent by FEMA via email to DPS/THSSAA and CBP/BP HQ in Washington, D.C. 1. Sub -recipient shall develop and submit required operational documents through the border area's Integrated Planning Team. 2. Sub -recipient shall maintain an approved Concept of Operations, consisting of a campaign plan and proposed budget which will articulate the intent of how OPSG funds will be used throughout Sub -recipient's Grant performance period. 3. If Sub -recipient intends to spend more than 50 percent of its award on overtime over the course of the performance period, a request for an overtime waiver shall be submitted through the Integrated Planning Team. 4. Sub -recipient shall develop and submit Operations Orders for Tactical operational periods to achieve the strategic objectives of the campaign plan. 5. Sub -recipient shall only initiate tactical operations after the specific Operations Order(s) are approved through the Border Patrol Headquarters and by FEMA, and the DPS/THSSAA has issued a Grant Sub -recipient Award or Grant Adjustment Notice (GAN) to the jurisdiction. 9. State Requirements for Grants Sub -recipient shall comply with all other federal, state, and local laws and regulations applicable to this Grant including but not limited to the laws and the regulations promulgated in Texas Government Code, Chapter 783, Uniform Grant and Contract Management, State Administrative Agency Information Bulletins, available at http://www.txdns.state.tx.us/director staff/saa/information bulletins.htm Texas Uniform Grants Management Standards (UGMS) at http://www.window,state.tx.us/orocurement/catrad/uams.Ddf and the State Administrative Agency Sub -recipient Manual, available at htto://www.txdos.state,tx.us/director staff/saa/documents/subrecioientManual.Ddf. Sub -recipient shall, in addition to the assurances and certifications, comply and require each of its subcontractors employed in the completion of the project to comply with all applicable statutes, regulations, executive orders, OMB circulars, terms and conditions of this Grant, and the approved application. Sub -recipient shall comply with the State of Texas General Appropriations Act, Art. IX, Part 4, as follows: 1. Grant funds may not be expended for this Grant to a law enforcement agency regulated by Texas Occupations Code, Chapter 1701. unless the law enforcement agency requesting this Grant is in compliance with all rules developed by the Texas Commission on Law Enforcement (COLE) or TCOLE certifies that the requesting agency is in the process of achieving compliance with such rules. 2. Grant funds may not be awarded to or expended by any entity which performs political polling. This prohibition does not apply to a poll conducted by an academic institution as part of the institution's academic mission that is not conducted for the benefit of a particular candidate or party. 3. Grant funds may not be expended by a unit of local government unless the following limitations and reporting requirements are satisfied: a. Texas General Appropriations Act, Art. IX, Parts 2 and 3, except there is no requirement for increased salaries for local government employees; b. Texas Government Code Sections 556.004, 556.005, and 556.006, which prohibits using any money or vehicle to support the candidacy of any person for office; influencing positively or negatively the payment, loan, or gift to a person or political organization for a political purpose and using Grant funds to influence the passage or defeat of legislation including not assisting with the funding of a lobbyist, or using Grant funds to pay dues to an organization with a registered lobbyist; c. Texas Government Code Sections 2113.012 and 2113.101, which prohibits using Grant funds to compensate any employee who uses alcoholic beverages on active duty and Sub -recipient may not use Grant funds to purchase an alcoholic beverage and may not pay or reimburse any travel expense for an alcoholic beverage; d. Texas General Appropriations Act, Art. IX, Section 6.13, which requires Sub -recipient to make every effort to attain key performance target levels associated with this Grant, including performance milestones, milestone time frames, and related performance reporting requirements; and e. General Appropriations Act, Art. IX, Sections 7.01 and 7.02, and Texas Government Code §2102.0091, which requires that this Grant may only be expended if Sub -recipient timely completes and files its reports. 10. Restrictions and General Conditions A. Use of Funds. DHS Grant funds may only used for the purposes set forth in this Grant, and shall be consistent with the statutory authority for this Grant. Grant funds may not be used for matching funds for other Federal grants/cooperative agreements, lobbying, or intervention in Federal regulatory or adjudicatory proceedings. In addition, Federal funds may not be used to sue the Federal government or any other government entity. B. Lobbying Prohibited. No funds shall be expended by Sub -Recipient to pay any person to influence, or attempt to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any Federal action concerning the award or renewal of any Federal contract, grant, loan, or cooperative agreement. These lobbying prohibitions may be found at 31 U.S.C. §1352. Further, Sub -Recipient understands and agrees that it shall not use any federal funds, either directly or indirectly, in support of the enactment, repeal, modification or adoption of any law, regulation, or policy. at any level of government, without the express prior written approval of FEMA. C. Transferring Funds. Sub -recipient is prohibited from transferring funds between grant programs (such as SHSP, UASI, and OPSG) without a properly executed GAN. D. Federal Employee Prohibition. Federal employees are prohibited from serving in any capacity (paid or unpaid) on any proposal submitted under this Grant. Federal employees may not receive funds under this Grant. E. Cost Categories. There may be limitations on the use of HSGP and/or NSGP funds for the categories of costs listed below. For additional details on restrictions on the use of funds, refer to the FY 2014 HSGP or NSGP FOA, Appendix C, Funding Guidelines. 1. Management and Administration 2. Planning 3. Organization 4. Equipment 5. Training 6. Exercises 7. Maintenance and Sustainment 8. Critical Emergency Supplies 9. Construction and Renovation F. Governing Board Approval. In cases where local funding is established by a Council of Government (COG) or an Urban Area Security Initiative (UASI) governing board, the release of funds by DPS/THSSAA is contingent upon funding allocation approval by the governing board. G. Notices. All notices or communications required or permitted to be given by either Party hereunder shall be deemed sufficiently given if mailed by registered mail or certified mail, return receipt requested, or sent by overnight courier, such as Federal Express or Lone Star to the other Party at its respective address. For notice to DPS/THSSAA see address set forth below. For Sub -recipient, see the address listed on the Grant Sub -Recipient Award page or Point of Contact address listed for the Sub -recipient in the DPS/THSSAA Grants Management System (SPARS). DPS/THSSAA Contact Information Deputy Assistant Director Texas Homeland Security State Admin. Agency Texas Department of Public Safety P.O. Box 4087 Austin, TX 78773-0220 H. Points of Contacts. Within 30 calendar days of any change, Sub -recipient shall notify DPS/THSSAA of any change or correction to the chief elected official, program, and/or financial points of contact in the DPS/THSSAA grant management system. I. DUNS Number. Sub -recipient confirms its Data Universal Numbering Systems (DUNS) Number is the number listed on this Grant. The DUNS Number is the nine digit number established and assigned by Dun and Bradstreet, Inc., at 866/705-5711 or http://fedaov.dnb.com/webform. J. Central Contractor Registration and Universal Identifier Reauirements. Sub -recipient maintains that it has registered on the System for Award Management (SAM) at www.sam.00v. or other federally established site for contractor registration, and entered DPS/THSSAA-required information. Sub -recipient shall keep current, and then review and update the information at least annually. Sub -recipient shall keep information current in the SAM database until the later of when it submits this Grant's final financial report or receives final Grant award payment. Sub -recipient agrees that it shall not make any subaward agreement or contract related to this Grant without first obtaining the vendor/subawardee's mandatory DUNS number. See Section .210 of OMB Circular A-133, Audits of States, Local Governments, and Non-profit Organizations. K. Indirect Cost Allocation Plan. Sub -recipient shall submit its most recently approved Indirect Cost Allocation Plan signed by Cognizant Agency to DPS/THSSAA within 30 calendar days of the approval. "Cognizant agency" means the Federal agency responsible for reviewing. negotiating, and approving cost allocation plans or indirect cost proposals developed under 2 C.F.R. Part 225 on behalf of all Federal agencies. OMB publishes a listing of cognizant agencies athtto.//harvester.census.aov/sac/dissem/asD/reoorts.asp. Unless the basis of the cost plan changes, Sub -recipient only needs to forward the annual Indirect Cost Rate approval letter to DPS/THSSAA within 30 calendar days after approval by the Cognizant Agency. The approved Indirect Cost Plans and approval letters shall be emailed to SAA RRedos.texas.gov. The Sub -recipient name shall be included in the file name and subject line of the email transmittal. L. Reporting Total Compensation of Sub -recipient Executives. 2 C.F.R. §170.320; see FEMA Information Bulletin 350. 1. Applicability and what to report: Sub -recipient shall report whether Sub -recipient received $25 million or more in Federal procurement contracts or financial assistance subject to the Transparency Act per 2 C.F.R. §170.320. Sub -recipient shall report whether 80% or more of Sub -recipient's annual gross revenues were from Federal procurement contracts or Federal financial assistance. If Sub -recipient answers "yes" to both questions, Sub -recipient shall report, along with Sub -recipient's DUNS number, the names and total compensation (see 17 C.F.R. §229.402(c)(2)) for each of Sub -recipient's five most highly compensated executives for the preceding completed fiscal year. 2. Where and when to report: Sub -recipient shall report executive total compensation at www.sam.aov or other federally established replacement site. By signing this Grant, Sub -recipient certifies that, if required, Sub -recipient's jurisdiction has already registered, entered the required information, and shall keep information in the SAM database current, and update the information at least annually for each year until the later of when the jurisdiction submits its final financial report or receives final payment. Sub -recipient agrees that it shall not make any subaward agreement or contract without first obtaining the subawardee's mandatory DUNS number. M. Direct Deposit. If Sub -recipient has not received HSGP or NSGP reimbursements from DPS/THSSAA within the past eleven (11) months (prior to date of award), it shall forward a new/updated direct deposit form to DPS/THSSAA. Completed direct deposit forms from Sub -recipient shall be emailed to SAA RR pndos.texas.aov. The email subject line and attachment name shall include the jurisdiction name and identify the document attached (i.e. "Sample County DD form"). The direct deposit form is currently available at htto://www.window.state,tx.us/taxinfo/taxforms/74-176.odf. Sub -recipient may simultaneously sign up for the Advance Payment Notification (APN) email feature which provides State of Texas payees with a one -business -day advance notice that a direct deposit payment has been sent to its financial institution. After receiving an APN, a payee may securely access its payment details online. N. Procurements. Sub -recipient shall comply with all applicable federal, state, and local laws and requirements, including but not limited to proper competitive solicitation processes where required, for any procurement which utilizes federal funds awarded under this Grant in accordance with 44 C.F.R. §13.36. O. Contract Provisions. All contracts executed using funds awarded under this Grant shall contain the contract provisions listed under 44 C.F.R. §13.37(b), Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. P. No Contracts with Debarred or Suspended Parties. Prior to contracting with any vendor or subawardee using funds awarded under this Grant, Sub -recipient shall determine whether the vendor/subawardee is debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded by any federal department and agency and shall confirm the vendor/subawardee does not have any active "Exclusions" by reviewing the vendor/subawardee entity information at httos://www.sam.aov/portal/oubiic/SAM/. Q. Management and Administration. If this Grant includes a specific award of funds to Sub -recipient for management and administration (M&A), Sub -recipient shall comply with all applicable requirements and limitations with respect to M&A. For additional information on M&A, refer to Information Bulletin 365 located at http://www.fema.aov/grants/grant-oroarams-directorate-information-bulletins. R. Personnel Cao. Up to fifty percent (50%) of all HSGP awards received by Sub -recipient may be used for personnel and personnel -related activities as directed by the Personnel Reimbursement for Intelligence Cooperation and Enhancement (PRICE) of Homeland Security Act (Public Law 110-412). In general, use of HSGP funding to pay for staff and/or contractor regular time or overtime/backfill, among other items, are considered personnel -related costs. Sub -recipient may request a waiver to the 50% personnel cap by submitting a waiver request through its respective regional council or urban area working group to DPS/THSSAA at SAAedos.texas.aov. Requests for waivers shall be submitted on official Sub -recipient letterhead and be signed by an authorized official of Sub -recipient. Waivers shall contain the information required on page 9 of the FEMA Information Bulletin 379. S. Property Management and Inventory. At least every two (2) years, Sub -recipient shall take a physical inventory and shall reconcile the results with property records. Sub -recipient shall maintain property/inventory records which, at minimum, shall include a description of the property, a serial number or other identification number, the source of property, who holds title, the acquisition date, the cost of the property, the percentage of Federal participation in the cost of the property, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. (See sample equipment inventory record format at htto://www.txdos.state.tx.us/director staff/saa/audit and comoliance.htm ) Sub -recipient shall develop and implement a control system to prevent loss, damage or theft of property and Sub -recipient shall investigate and document any loss, damage or theft of property funded under this Grant. T. Publications. All publications produced as a result of funding under this Grant, which are submitted for publication in any magazine, journal, or trade paper, shall include the following statement: "This material is based upon work supported by the U.S. Department of Homeland Security. The views and conclusions contained in this document are those of the authors and should not be interpreted as necessarily representing the official policies, either expressed or implied, of the U.S. Department of Homeland Security." U. Acknowledaement of Federal Funding from DHS. Sub -recipient shall comply with requirements to acknowledge use of Federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with Federal funds. V. Use of DHS. DPS. and DPS/THSSAA Seals and Non -Endorsement. Sub -recipient shall obtain DHS, DPS, or DPS/THSSAA's prior written approval before using any of these agencies' seal(s), logos, crests or reproductions of flags or likenesses of agency officials. Funding of this Grant does not equate to endorsement of use of funding agencies' seals, logos, crests, etc., including use of the United States Coast Guard seal, logo, crests, or reproductions of flags or likenesses of Coast Guard officials. W. Copyright. Sub -recipient shall comply with requirements regarding publications or other exercise of copyright for any work first produced under Federal financial assistance awards hereto related unless the work includes any information that is otherwise controlled by the Govemment (e.g., classified information or other information subject to national security or export control laws or regulations). For any scientific, technical, or other copyright work based on or containing data first produced under this Grant, including those works published in academic, technical or professional journals, symposia proceedings, or similar works, Sub -recipient grants the Government a royalty -free, nonexclusive and irrevocable license to reproduce, display, distribute copies, perform, disseminate, or prepare derivative works, and to authorize others to do so, for Government purposes in all such copyrighted works. Sub -recipient shall affix the applicable copyright notices of 17 U.S.C. §401 or 402 and an acknowledgment of Government sponsorship (including award number) to any work first produced under this Grant. Further, Sub -recipient acknowledges that FEMA National Preparedness Directorate reserves a royalty -free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use, and authorize others to use, for government purposes: (1) the copyright in any work developed under an award or sub -award; and (2) any rights of copyright to which a recipient or Sub -recipient purchases ownership with Federal support. Sub -recipient agrees to consult with DPS/THSSAA regarding the allocation of any patent rights that arise from or are purchased with this funding. X. Quarterly Performance Reports. Sub -recipient shall submit performance reports and progress reviews per DPS/THSSAA and/or FEMA's direction. Reports are entered into the grants management system. Performance reports are due by the twentieth (20th) calendar day after the end of each calendar quarter: January 20, April 20, July 20 and October 20; or as otherwise specified or required by DPS/THSSAA. DPS/THSSAA may require other reports or different timelines to meet federal reporting dates or to respond to information requests. Failure to timely complete a performance report will result in Sub -recipient being unable to request additional reimbursements/advances and may affect future funding. Y. Site Visits. DHS and/or DPS/THSSAA, through its authorized representatives, have the right, at all reasonable times to make site visits to review project accomplishments and management control systems and to provide such technical assistance as may be required. If any site visit is made by DHS on the premises of Sub -recipient or a contractor under this Grant, Sub -recipient shall provide and shall require its contractors to provide all reasonable facilities and assistance for the safety and convenience of the government representatives in the performance of their duties. All site visits and evaluations shall be performed in such a manner that will not unduly delay the work. Z. Limited English Proficiency (Civil Rights Act of 1964. Title VI). Sub -recipient shall comply with the Title VI of the Civil Rights Act of 1964 (Title VI) prohibition against discrimination on the basis of national origin, which requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services. Providing meaningful access for persons with LEP may entail providing language assistance services, including oral interpretation and written translation. In order to facilitate compliance with Title VI, Sub -recipient is encouraged to consider the need for language services for LEP persons served or encountered in developing program budgets. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency(August 11, 2000), requires federal agencies to issue guidance to recipients of federal financial assistance, assisting such organizations and entities in understanding their language access obligations. DHS published the required guidance in April 2011, DHS Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons, 76 Fed. Reg. 21755-21768 (April 18, 2011). The Guidance provides helpful information such as how a recipient of federal financial assistance can determine the extent of its obligation to provide language services; selecting language services; and elements of an effective plan on language assistance for LEP persons. For additional assistance and information regarding language access obligations, please refer to the DHS Recipient Guidance at https://www.dhs.aov/guidance-published-help-department-supported-organizations-provide-meaningful-access-people-limited and additional resources on htto://www.lep.aov. AA. Protection of Human Subiects. Sub -recipient shall comply with the requirements of the Federal regulations at 45 C.F.R. Part 46, which requires that Sub -recipients comply with applicable provisions/law for the protection of human subjects for purposes of research. Sub -recipient shall comply with the requirements in DHS Management Directive 026-04, Protection of Human Subjects, prior to implementing any work with human subjects. For purposes of 45 C.F.R. Part 46, research means a systematic investigation, including research, development, testing, and evaluation, designed to develop or contribute to general knowledge. Activities that meet this definition constitute research for purposes of this policy, whether or not they are conducted or supported under a program that is considered research for other purposes. The regulations specify additional protections for research involving human fetuses, pregnant women, and neonates (Subpart B); prisoners (Subpart C); and children (Subpart D). The use of autopsy materials is governed by applicable State and local law and is not directly regulated by 45 C.F.R. Part 46. BB. National Flood Insurance Act of 1968. Sub -recipient shall comply with the requirements of Section 1306(c) of the National Flood Insurance Act, as amended, which provides for benefit payments under the Standard Flood Insurance Policy for demolition or relocation of a structure insured under the Act that is located along the shore of a lake or other body of water and that is certified by an appropriate State or local land use authority to be subject to imminent collapse or subsidence as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels. These regulations are codified at 44 C.F.R. Part 63. CC. USA Patriot Act of 2001. Sub -recipient shall comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. §§175-175c. Among other things, it prescribes criminal penalties for possession of any biological agent, toxin, or delivery systems of a type or in a quantity that is not reasonably justified by a prophylactic, protective, bona fide research, or other peaceful purpose. The Act also establishes restrictions on access to specified materials. "Restricted persons," as defined by the Act, may not possess, ship, transport, or receive any biological agent or toxin that is listed as a select agent. DD. Fly America Act of 1974. Sub -recipient shall comply with the requirements of the Preference for U.S. Flag Air Carriers: Travel supported by U.S. government funds requirement, which states preference for the use of U.S. flag air carriers (air carriers holding certificates under 49 U.S.C. §41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. §40118) and the interpretive guidelines issued by the Comptroller General of the United States in the March 31, 1981 amendment to Comptroller General Decision B138942. EE. Activities Conducted Abroad. Sub -recipient shall comply with the requirements that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained. FF. Trafficking Victims Protection Act of 2000. All recipients of financial assistance shall comply with the requirements of the government -wide award term which implements Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. § 7104), located at 2 C.F.R. Part 175. This is implemented in accordance with OMB Interim Final Guidance, Federal Register, Volume 72, No. 218, November 13, 2007. In accordance with the statutory requirement, in each agency award under which funding is provided to a private entity, Section 106(g) of the TVPA, as amended, requires the agency to include a condition that authorizes the agency to terminate the award, without penalty, if the recipient or a sub -recipient: (a) engages in severe forms of trafficking in persons during the period of time that the award is in effect; (b) procures a commercial sex act during the period of time that the award is in effect; or (c) uses forced labor in the performance of the award or subawards under the award. DPS/THSSAA is authorized to terminate this Grant ,without penalty, if the above condition is violated. Sub -recipient shall include this condition in any subawards or contracts it makes as a result of this Grant. Full text of the award term is provided at 2 C.F.R. §175.15. GG. Americans with Disabilities Act of 1990. Sub -recipient shall comply with the requirements of Titles I, II, and III of the Americans with Disabilities Act, which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities. 42 U.S.C. §§ 12101-12213. HH. Public Dissemination of Sensitive Information. Sub -recipient shall notify DPS/THSSAA of any workshops, conferences, seminars or other public venues at least one hundred (100) calendar days before presenting any potentially sensitive information regarding this project. No sensitive information may be presented by Sub -recipients' personnel without DPS/THSSAA and the DHS Grants Officer's review and prior written approval. II. Security ConcernsNiolations. Sub -recipient shall inform the THSSAA's Deputy Assistant Director in writing within two (2) calendar days of Sub -recipient being made aware of any security concerns with individuals having access to government facilities or sensitive information. In the event that sensitive information is divulged in violation of Sub -recipient's security procedures, Sub -recipient shall immediately notify the DPS/THSSAA Deputy Assistant Director and take appropriate law enforcement and legal action. JJ. SAFECOM. Sub -recipient shall comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications for awards under this Grant that provide emergency communication equipment and its related activities. KK. Best Practices for Collection and Use of Personally Identifiable Information (PII).Sub-recipients who collect Personally Identifiable Information (PII) shall have a publically-available privacy policy that describes what PII it collects, how it uses the PII, whether it shares PII with third parties, and how individuals may have their PII corrected where appropriate. Sub -recipients may also find as a useful resource the DHS Privacy Impact Assessments: http://www.dhs.gov/xlibrary/assets/orivacv/orivacv pia guidance iune2010.odf and http://www.dhs.aov/xlibrary/assets/orivacv/orivacv pia temolate.odf LL. Hotel and Motel Fire Safety Act of 1990. In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, 15 U.S.C. §2225(a), Sub -recipient shall ensure that all conference, meeting, convention, or training space funded in whole or in part with Federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, 15 U.S.C. §2225. MM. False Claims Act and Proaram Fraud Civil Remedies. Sub -recipient shall comply with the requirements of 31 U.S.C. §3729 which sets forth that no recipient of federal payments shall submit a false claim for payment. See also 38 U.S.C. §3801-3812 which details the administrative remedies for false claims and statements made. NN. Duplication of Benefits. State, Local and Tribal Sub -recipients shall comply with 2 C.F.R. Part §225, Appendix A, Paragraph (C)(3)(c). which provides that any cost allocable to a particular Federal award or cost objective under the principles provided for in this authority may not be charged to other Federal awards to overcome fund deficiencies. 00. Debarment and Suspension. Sub -recipient shall comply with Executive Order 12549 and 12689, which provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. PP. Non-Suoolantina Reauirement. Sub -recipient shall not replace (supplant) funds that have been budgeted for the same purpose through non -Federal sources for programs that prohibit supplanting by law. Where federal statutes for a particular program prohibit supplanting, Sub -recipient may be required to demonstrate and document that a reduction in non -Federal resources occurred for reasons other than the receipt or expected receipt of Federal funds. 11. Other Requirements A. During the performance period of this Grant, Sub -recipient, counties, cities, towns, and Indian tribes shall maintain an Emergency Management Plan at the Intermediate Level of planning preparedness or higher, as prescribed by the Texas Division of Emergency Management (TDEM). This may be accomplished by a jurisdiction maintaining its own emergency management plan or participating in an inter -jurisdictional emergency management program that meets the required standards. If TDEM identifies deficiencies in Sub -recipient's plan, Sub -recipient shall correct deficiencies within 60 calendar days of receiving notice of such deficiencies from TDEM. B. Projects identified and approved in the DPS/THSSAA web -based grant management system must identify and relate to the goals and objectives indicated by the applicable approved project investments for the period of performance of this Grant. Sub -recipient shall submit project plans, milestones, outputs/outcomes, narratives and budget to DPS/THSSAA and FEMA (if required) for approval prior to expending or requesting advances of any funds for this Grant. Sub -recipient shall enter appropriate project milestones into the DPS/THSSAA web -based grants management system within 60 days after award or by the deadline established by DPS/THSSAA, whichever is sooner. Sub -recipient shall report on project status and accomplishments (milestones and outputs/outcomes) in the format(s) and timeframes as required by DPS/THSSAA. C. During the performance period of this Grant, Sub -recipient shall: 1. Participate in a legally -adopted county and/or regional mutual aid agreement. 2. Implement the National Incident Management System (NIMS) in a manner consistent with the NIMS Implementation Objectives outlined by FEMA at htto://www.fema.00v/national-incident-management-system. 3. Be a registered user of the Texas Regional Response Network (TRRN) (or other response asset inventory management system specified by DPS/THSSAA) and shall identify, resource type, and credential all major deployable resources such as vehicles and trailers, equipment costing $5,000 or more, and specialized teams/response units equipped and/or trained using Grant funds (i.e., hazardous material, decontamination, search and rescue, etc.). This registration is to ensure jurisdictions or organizations are prepared to make Grant funded resources available to other jurisdictions through mutual aid htto://www.fema.00v/emeraencv/nims/ResourceMngmnt.shtm#item3. 12. Monitorina Sub -recipient will be monitored periodically by federal, state or local entities, both programmatically and financially, to ensure that project goals, objectives, performance requirements, timelines, milestone completion, budget, and other program -related criteria are met. DPS/THSSAA, or its authorized representative, reserves the right to perform periodic desk/office-based and/or on-site monitoring of Sub -recipient's compliance with this Grant and of the adequacy and timeliness of Sub -recipient's performance pursuant to this Grant. After each monitoring visit, DPS/THSSAA shall provide Sub -recipient with a written report of the monitor's findings. If the monitoring report notes deficiencies in Sub -recipient's performance under this Grant, the monitoring report shall include requirements for the timely correction of such deficiencies by Sub -recipient. Failure by Sub -recipient to take action specified in the monitoring report may be cause for suspension or termination of this Grant pursuant to the Suspension and/or Termination Section herein. 13. Audit A. Audit of Federal and State Funds. Sub -recipient shall arrange for the performance of an annual financial and compliance audit of funds received and performances rendered under this Grant as required by the Single Audit Act (OMB Circular A — 133; 44 C.F.R. 13.26). B. Sub -recipient shall comply, as applicable, with Texas Government Code, Chapter 783, the Uniform Grant Management Standards (UGMS), the State Uniform Administrative Requirements for Grants and Cooperative Agreements. C. Riaht to Audit. Sub -recipient shall give the United States Department of Homeland Security (DHS), the Comptroller General of the United States, the Texas State Auditor, DPS/THSSAA, or any of their duly authorized representatives, access to and the right to conduct a financial or compliance audit of Grant funds received and performances rendered under this Grant. Sub -recipient shall permit DPS/THSSAA or its authorized representative to audit Sub -recipient's records. Sub -recipient shall provide any documents, materials or information necessary to facilitate such audit. D. Sub -recipient's Liability for Disallowed Costs. Sub -recipient understands and agrees that it shall be liable to DPS/THSSAA for any costs disallowed pursuant to any financial or compliance audit(s) of these funds. Sub -recipient further understands and agrees that reimbursement to DPS/THSSAA of such disallowed costs shall be paid by Sub -recipient from funds that were not provided or otherwise made available to Sub -recipient pursuant to this Grant or any other federal contract. E. Sub-reciaient's Facilitation of Audit. Sub -recipient shall take such action to facilitate the performance of such audit(s) conducted pursuant to this Section as DPS/THSSAA may require of Sub -recipient. Sub -recipient shall ensure that this clause concerning the authority to audit funds received indirectly by subcontractors through Sub -recipient and the requirement to cooperate is included in any subcontract it awards. F. State Auditor's Clause. Sub -recipient understands that acceptance of funds under this Grant acts as acceptance of the authority of the State Auditor's Office to conduct an audit or investigation in connection with those funds. Sub -recipient further agrees to cooperate fully with the State Auditor's Office in the conduct of the audit or investigation, including providing all records requested. Sub -recipient shall ensure that this clause concerning the State Auditor's Office's authority to audit funds and the requirement to cooperate fully with the State Auditor's Office is included in any subgrants or subcontracts it awards. Additionally, the State Auditor's Office shall at any time have access to and the rights to examine, audit, excerpt, and transcribe any pertinent books, documents, working papers, and records of Sub -recipient relating to this Grant. 14. Retention and Accessibility of Records A. Retention of Records. Sub -recipient shall maintain fiscal records and supporting documentation for all expenditures of this Grant's funds pursuant to the applicable OMB Circular, 44 C.F.R. Section 13.42, UGMS §_ 42, and this Grant. Sub -recipient shall retain these records and any supporting documentation for a minimum of three (3) years from the later of the completion of this project's public objective, submission of the final expenditure report, any litigation, dispute, or audit. Records shall be retained for three (3) years after any real estate or equipment final disposition. The DHS or DPS/THSSAA may direct Sub -recipient to retain documents or to transfer certain records to DHS custody when DHS determines that the records possess long term retention value. B. Access to Records. Sub -recipient shall give the United States Department of Homeland Security, the Comptroller General of the United States, the Texas State Auditor, DPS/THSSAA, or any of its duly authorized representatives, access to and the right to examine all books. accounts, records, reports, files, other papers, things or property belonging to or in use by Sub -recipient pertaining to this Grant including records concerning the past use of DHS/FEMA funds. Such rights to access shall continue as long as the records are retained by Sub -recipient. Sub -recipient shall maintain such records in an accessible location and provide citizens reasonable access to such records consistent with the Texas Public Information Act, Texas Government Code, Chapter 552. C. Inclusion in Subcontracts. Sub -recipient shall include the substance of this in all subcontracts. D. After Action Reporting. Sub -recipient shall complete. deliver to the appropriate source, and retain copies of all after -action reports and certificates of completion for all training and exercises paid for by this Grant. 15. Legal Authority A. Sianatory Authority. Sub -recipient assures and guarantees that Sub -recipient possesses the legal authority to enter into this Grant. receive Grant funds and to perform the project Sub -recipient has obligated itself to perform pursuant to this Grant. B. Authorized Representative. The person or persons signing and executing this Grant on Sub -recipient's behalf do warrant and guarantee that he/she has been duly authorized by Sub -recipient to execute this Grant on Sub -recipient's behalf and to validly and legally bind Sub -recipient to all terms and conditions and performance obligations. C. Conflicts in Reauirements. If conflict exists between federal, state, or local requirements, Sub -recipient shall comply with the strictest requirement. 16. Notice of Litigation and Claims Sub -recipient shall give DPS/THSSAA immediate notice in writing of any action or claim, including any proceeding before an administrative agency, filed against Sub -recipient arising out of performance of this Grant. Except as otherwise directed by DPS/THSSAA, Sub -recipient shall furnish immediately to DPS/THSSAA copies of all documentation or pleadings received by Sub -recipient with respect to such action or claim. 17. No Liability for Employees and Officers DPS/THSSAA shall have no liability whatsoever for the actions or omissions of an individual employed or contracted by Sub -recipient, regardless of where the individual's actions or omissions occurred. 18. Non -Waiver of Defaults Any failure of DPS/THSSAA, at any time, to enforce or require the strict keeping and performance of any provision of this Grant shall not constitute a waiver of such provision, and shall not affect or impair same or the right of DPS/THSSAA at any time to avail itself of same. A waiver does not become effective unless DPS/THSSAA expressly agrees to such waiver in writing. Any payment by DPS/THSSAA shall not constitute a waiver or otherwise impair or prejudice any right, power, privilege, or remedy available to DPS/THSSAA to enforce its rights, as such rights, powers, privileges, and remedies are specifically preserved. 19. Changes and Amendments A. Modification. FEMA or DPS/THSSAA may modify this Grant after an award has been made. Once notification has been made in writing, any subsequent request for funds indicates Sub -recipient's acceptance of the changes to this Grant. Any alteration, addition, or deletion to this Grant by Sub -recipient is not valid. B. Written Amendment. Alterations, additions or deletions to this Grant, such as changes to period of performance and award amounts, shall be made through an executed Grant Adjustment Notice (GAN). C. Authority to Amend. During the period of performance for this Grant, DPS/THSSAA and/or FEMA may issue policy directives that serve to establish, interpret or clarify this Grant's performance requirements. Such policy directives shall be promulgated by DPS/THSSAA or FEMA in the form of Information Bulletins and Sub -recipient Manuals and shall have the effect of modifying this Grant and shall be binding upon Sub -recipient as if written in this Grant. D. Effect of Changes in Federal and State Laws. Any alterations, additions, or deletions to this Grant that are required by changes in federal and state laws or regulations are automatically incorporated into this Grant without written amendment to this Grant and shall become effective upon the date designated by such law or regulation. In the event FEMA or DPS/THSSAA determines that changes are necessary to this Grant after an award has been made, including changes to the period of performance or terms and conditions, Sub -recipient shall be notified of the changes in writing. Once notification has been made, any subsequent request for funds will indicate Sub -recipient's acceptance of the changes to this Grant. 20. Headings Headings and captions of this Grant are only for convenience and reference. These headings and captions shall not affect or modify the terms and conditions or be used to interpret or assist in the construction of this Grant. 21. Venue Venue shall lie in Travis County, Texas, and this Grant is governed by the laws of the State of Texas. 22. Suspension In the event Sub -recipient fails to comply with any term of this Grant, DPS/THSSAA mayupon written notification to Sub -recipient, suspend this Grant, in whole or in part, withhold payments to Sub -recipient and prohibit Sub -recipient from incurring additional obligations of this Grant's funds. 23. Termination DPS/THSSAA shall have the right to terminate this Grant, in whole or in part, at any time before the end of the Performance Period, if DPS/THSSAA determines that Sub -recipient has failed to comply with any term of this Grant. DPS/THSSAA shall provide written notice of the termination and include: 1. The reason(s) for such termination; 2. The effective date of such termination; and 3. In the case of partial termination, the portion of this Grant to be terminated. Appeal may be made to the Deputy Director of Homeland Security, Texas Department of Public Safety. 24. Enforcement If Sub -recipient materially fails to comply with any term of this Grant, whether stated in a federal or state statute or regulation, an assurance, in a state plan or application, a notice of award, or elsewhere, DPS/THSSAA or DHS may take one or more of the following actions, as appropriate in the circumstances: 1. Temporarily withhold cash payments pending correction of the deficiency by Sub -recipient or more severe enforcement action by DPS/THSSAA or DHS; 2. Disallow or deny use of funds and matching credit for all or part of the cost of the activity or action not in compliance; 3. Wholly or partially suspend or terminate this Grant for Sub -recipient's program; 4. Withhold further awards for the program; or 5. Take other remedies that may be legally available. In taking an enforcement action, DPS/THSSAA will provide Sub -recipient an opportunity for a hearing, appeal, or other administrative proceeding to which Sub -recipient is entitled under any statute or regulation applicable to the action involved. The costs of Sub -recipient resulting from obligations incurred by Sub -recipient during a suspension or after termination of this Grant are not allowable unless DPS/THSSAA or DHS expressly authorizes them in the notice of suspension or termination or subsequently. Other Sub -recipient costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: 1. The costs result from obligations which were properly incurred by Sub -recipient before the effective date of suspension or termination, are not in anticipation of it, and in the case of a termination, are non -cancellable; and 2. The costs would be allowable if this Grant were not suspended or expired normally at the end of the funding period in which the termination takes effects. The enforcement remedies identified in this section, including suspension and termination, do not preclude Sub -recipient from being subject to "Debarment and Suspension" under E.O. 12549. 44 C.F.R. §13.35. 25. Conflict of Interest No employee, officer or agent of Sub -recipient shall participate in the selection, or in the award or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, is involved or otherwise creates the appearance of impropriety. 26. Closing of this Grant A. DPS/THSSAA will close a sub -award after receiving Sub -recipient's final quarterly performance report indicating that all approved work has been completed and all funds have been disbursed, completing a review to confirm the accuracy of the reported information, and reconciling actual costs to award modifications and payments. If the close out review and reconciliation indicates that Sub -recipient is owed additional funds, DPS/THSSAA will send the final payment automatically to Sub -recipient. If Sub -recipient did not use all the funds received, DPS/THSSAA will issue a GAN to recover the unused funds. Sub -recipient will return the funds to the DPS/THSSAA within 30 calendar days of receiving the GAN. B. At the completion of Sub -recipient's performance period, DPS/THSSAA will de -obligate all uncommitted / unexpended funds. C. The closeout of this Grant does not affect: 1. DHS or DPS/THSSAA's right to disallow costs and recover funds on the basis of a later audit or other review; 2. Sub -recipient's obligation to return any funds due as a result of later refunds, corrections, or other transactions; 3. Records retention requirements, property management requirements, and audit requirements, as set forth herein; and 4. Any other provisions of this Grant that impose continuing obligations on Sub -recipient or that govern the rights and limitations of the parties to this Grant after the expiration or termination of this Grant. Please fill in the appropriate information and certify by signing below that you have read, understood, and agree to the terms of this Grant. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date EXHIBIT A ASSURANCES - NON -CONSTRUCTION PROGRAMS See Standard Form 424B As the duly authorized representative of Sub -recipient, I certify that Sub -recipient: 1. Has the legal authority to apply for Federal assistance and the institutional, managerial and financial capability (including funds sufficient to pay the non -Federal share of project cost) to ensure proper planning, management and completion of the project described in this Grant. 2. Will give the Department of Homeland Security, the Department of Public Safety, the Comptroller General of the United States and, if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to this Grant and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain. 4. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 5. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763) relating to prescribed standards for merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F). 6. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686 and 44 C.F.R. Part 19), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee- 3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing, (i) any other nondiscrimination provisions in the specific statute(s) under which agreement for Federal assistance is being made; and, (j) the requirements of any other nondiscrimination statute(s) which may apply to the application. 7. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally -assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 8. Will comply, as applicable, with provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. 9. Will comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for federally -assisted construction sub -agreements. 10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. 11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190 as amended by 42 U.S.C. 4311 et seq. and Executive Order (EO) 11514) which establishes national policy goals and procedures to protect and enhance the environment, including protection against natural disasters. To comply with NEPA for DHS grant -supported activities, DHS -FEMA requires the environmental aspects to be reviewed and evaluated before final action on the application (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) comply with the Clean Air Act of 1977, (42 U.S.C. §§7401 et seq. and Executive Order 11738) providing for the protection of and enhancement of the quality of the nation's air resources to promote public health and welfare and for restoring and maintaining the chemical, physical, and biological integrity of the nation's waters; (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93- 205). 12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. 13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq.). 14. Will comply with P.L. 93-348, 45 C.F.R. 46, and DHS Management Directive 026-044 (Directive) regarding the protection of human subjects involved in research, development, and related activities supported by this Grant. "Research" "means a systematic investigation, including research, development, testing, and evaluation designed to develop or contribute to general knowledge. See Directive for additional provisions for including humans in the womb, pregnant women, and neonates (Subpart B); prisoners (Subpart C); and children (Subpart D). See also state and local law for research using autopsy materials. 15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) which requires the minimum standards of care and treatment for vertebrate animals bred for commercial sale, used in research, transported commercially, or exhibited to the public according to the Guide for Care and Use of Laboratory Animals and Public Health Service Policy and Government Principles Regarding the Care and Use of Animals 16. Will comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures. 17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, "Audits of States, Local Governments, and Non -Profit Organizations." 18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations, grant guidance, and policies governing this Grant. Please fill in the appropriate information and sign to certify this Exhibit A. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date EXHIBIT B ASSURANCES - CONSTRUCTION PROGRAMS See Standard Form 424D As the duly authorized representative of Sub -recipient, I certify that Sub -recipient 1. Has the legal authority to apply for Federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non -Federal share of project costs) to ensure proper planning, management and completion of project described in this Grant. 2. Will give the Department of Homeland Security, the Department of Public Safety, the Comptroller General of the United States and, if appropriate, the State, the right to examine all records, books, papers, or documents related to this Grant and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives. 3. Will not dispose of, modify the use of, or change the terms of the real property title or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the Federal awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with Federal assistance funds to assure nondiscrimination during the useful life of this Grant. 4. Will comply with the requirements of the assistance awarding agency with regard to the drafting, review and approval of construction plans and specifications. 5. Will provide and maintain competent and adequate engineering supervision at the construction site to ensure that the complete work conforms with the approved plans and specifications and will furnish progressive reports and such other information as may be required by the awarding agency or State. 6. Will initiate and complete the work within the applicable time frame after receipt of approval of the awarding agency. 7. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain. 8. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. §§4728-4763) relating to prescribed standards of merit systems for programs funded under one of the 19 statutes or regulations specified in Appendix A of OPM's Standards for a Merit System of Personnel Administration (5 C.F.R. 900, Subpart F). 9. Will comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures. 10. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681 1683, and 1685-1686 and 44 C.F.R. Part 19), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29) U.S.C. §794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statue(s) under which agreement for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statue(s) which may apply to the agreement. 11. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal and federally -assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 12. Will comply with the provisions of the Hatch Act (5 U.S.C. §§1501-1508 and 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds. 13. Will comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327- 333) regarding labor standards for federally -assisted construction sub -agreements. 14. Will comply with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more. 15. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91- 190) as amended by 42 U.S.C. 4311 et seq. and Executive Order (EO) 11514 which establishes national policy goals and procedures to protect and enhance the environment, including protection against natural disasters; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) comply with the Clean Air Act of 1977, (42 U.S.C. §§7401 et seq. and Executive Order 11738) providing for the protection of and enhancement of the quality of the nation's air resources to promote public health and welfare and for restoring and maintaining the chemical, physical, and biological integrity of the nation's waters;(g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and, (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205). 16. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system. 17. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq). 18. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and OMB Circular No. A-133, "Audits of States, Local Governments, and Non -Profit Organizations." 19. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations, grant guidance and policies governing this Grant. Please fill in the appropriate information and sign to certify this Exhibit B, if applicable. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date Exhibit C Certifications The undersigned, as the authorized official, certifies the following to the best of his/her knowledge and belief. A. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee or a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee or a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL Disclosure of Lobbying Activities, in accordance with its instructions. C. The undersigned shall require that the language of this certification prohibiting lobbying be included in the award documents for all sub -awards at all tiers (including subcontracts, sub -grants, and contracts under grants, loans, and cooperative agreements) and that all sub -recipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. D. As required by Executive Order 12549, Debarment and Suspension, and implemented at 28 C.F.R. Part 67, for prospective participants in primary covered transactions, as defined at 28 C.F.R. Part 67, Section 67.510 (Federal Certification). The Sub -recipient certifies that it and its principals and vendors: 1. Are not debarred, suspended, proposed for debarment, declared ineligible, sentenced to a denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered transactions by any Federal department or agency. Sub -recipient can access debarment information by going to www.sam.aov and the State Debarred Vendor List http://www.window.state.tx.us/orocurement/proa/vendor performance/debarred. 2. Have not within a three-year period preceding this Grant been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (D)(2) of this certification; 4. Have not within a three-year period preceding this Grant had one or more public transactions (Federal, State, or local) terminated for cause or default; or 5. Where Sub -recipient is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this Grant. (Federal Certification) E. Federal funds will be used to supplement existing funds, and will not replace (supplant) funds that have been appropriated for the same purpose. Sub -recipient may be required to supply documentation certifying that a reduction in non-federal resources occurred for reasons other than the receipt or expected receipt of federal funds. F. Sub -recipient will comply with 2 C.F.R. Part 180, Subpart C as a condition of receiving grant funds, and Sub -recipient will require such compliance in any sub -grants or contract at the next tier. G. Sub -recipient will comply with the Drug-free Workplace Act, as amended, 412 U.S.C. §701 et seq. — which requires Sub -recipient to publish a statement about its drug-free workplace program and give a copy of the statement to each employee (including consultants and temporary personnel) who will be involved in award -supported activities at any site where these activities will be carried out. Also, places where work is being performed under the award (i.e., street address, city, state, and zip code) must be maintained on file. Sub -recipient will notify the Grants Officer of any employee convicted of a violation of a criminal drug statute that occurs in the workplace. For additional information, see 44 C.F.R. Part 17. Sub -recipient shall comply with the requirements of the Drug -Free Workplace Act of 1988, which requires that all organizations receiving grants from any Federal agency agree to maintain a drug-free workplace. H. Sub -recipient is not delinquent on any Federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129 and form SF -424, item number 17 for additional information and guidance. I. Sub -recipient will comply with all applicable requirements of all other federal laws, executive orders, regulations, program and administrative requirements, policies and any other requirements governing this Grant. J. Sub -recipient understands that failure to comply with any of the above assurances may result in suspension, termination or reduction of funds in this Grant. Please fill in the appropriate information and sign to certify this Exhibit C. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date EXHIBIT D State of Texas Assurances As the duly authorized representative of Sub -recipient, I certify that Sub -recipient: 1. Shall comply with Texas Government Code, Chapter 573, by ensuring that no officer, employee, or member of the Sub -recipient's governing body or of the Sub -recipient's contractor shall vote or confirm the employment of any person related within the second degree of affinity or the third degree of consanguinity to any member of the governing body or to any other officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employment of a person who shall have been continuously employed for a period of two years, or such other period stipulated by local law, prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree. 2. Shall insure that all information collected, assembled, or maintained by the Sub -recipient relative to a project will be available to the public during normal business hours in compliance with Texas Government Code, Chapter 552, unless otherwise expressly prohibited by law. 3. Shall comply with Texas Government Code, Chapter 551, which requires all regular, special, or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. 4. Shall comply with Section 231.006, Texas Family Code, which prohibits payments to a person who is in arrears on child support payments. 5. Shall not contract with or issue a license, certificate, or permit to the owner, operator, or administrator of a facility if the Sub -recipient is a health, human services, public safety, or law enforcement agency and the license, permit, or certificate has been revoked by another health and human services agency or public safety or law enforcement agency. 6. Shall comply with all rules adopted by the Texas Commission on Law Enforcement Officer Standards and Education pursuant to Chapter 1701, Texas Occupations Code, or shall provide the grantor agency with a certification from the Texas Commission on Law Enforcement Officer Standards and Education that the agency is in the process of achieving compliance with such rules if the Sub -recipient is a law enforcement agency regulated by Texas Occupations Code, Chapter 1701. 7. Shall follow all assurances. When incorporated into a grant award or contract, standard assurances contained in the application package become terms or conditions for receipt of grant funds. Administering state agencies and sub -recipients shall maintain an appropriate contract administration system to insure that all terms, conditions, and specifications are met. (See UGMS Section _.36 for additional guidance on contract provisions). 8. Shall comply with the Texas Family Code, Section 261.101, which requires reporting of all suspected cases of child abuse to local law enforcement authorities and to the Texas Department of Child Protective and Regulatory Services. Sub -recipient shall also ensure that all program personnel are properly trained and aware of this requirement. 9. Shall comply with all federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L. 88-352), which prohibits discrimination on the basis of race, color, or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps and the Americans with Disabilities Act of 1990 including Titles I, II, and III of the Americans with Disability Act which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities, 44 U.S.C. §§ 12101-12213; (d) the Age Discrimination Act of 1974, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment, and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to the nondiscrimination on the basis of alcohol abuse or alcoholism; (g) §§523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290dd-3 and 290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§3601 et seq.), as amended, relating to nondiscrimination in the sale, rental, or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statute(s) which may apply to this Grant. 10. Shall comply, as applicable, with the provisions of the Davis -Bacon Act (40 U.S.C. §§276a to 276a-7), the Copeland Act (40 U.S.C. §276c and 18 U.S.C. §874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for federally assisted construction subagreements. 11. Shall comply with requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (P.L. 91-646), which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases. 12. Shall comply with the provisions of the Hatch Political Activity Act (5 U.S.C. §§7321-29), which limit the political activity of employees whose principal employment activities are funded in whole or in part with Federal funds. 13. Shall comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act and the Intergovernmental Personnel Act of 1970, as applicable. 14. Shall insure that the facilities under its ownership, lease, or supervision which shall be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify the Federal grantor agency of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA (EO 11738). 15. Shall comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, Public Law 93-234. Section 102(a) requires the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any Federal financial assistance for construction or acquisition proposed for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. 16. Shall comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order (EO) 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved state management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §§1451 et seq.); (f) conformity of federal actions to State (Clear Air) Implementation Plans under Section 176(c) of the Clear Air Act of 1955, as amended (42 U.S.C. §§7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523); and (h) protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205). 17. Shall comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. §§1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.> 18. Shall assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §§469a-1 et seq.). 19. Shall comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. §§2131 et seq.) which requires the minimum standards of care and treatment for vertebrate animals bred for commercial sale, used in research, transported commercially, or exhibited to the public according to the Guide for Care and Use of Laboratory Animals and Public Health Service Policy and Government Principles Regarding the Care and Use of Animals. 20. Shall comply with the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. §§4801 et seq.) which prohibits the use of lead-based paint in construction or rehabilitation of residential structures. 21. Shall comply with the Pro -Children Act of 1994 (Public Law 103-277), which prohibits smoking within any portion of any indoor facility used for the provision of services for children. 22. Shall comply with all federal tax laws and are solely responsible for filing all required state and federal tax forms. 23. Shall comply with all applicable requirements of all other federal and state laws, executive orders, regulations, and policies governing this program. 24. And its principals are eligible to participate and have not been subjected to suspension, debarment, or similar ineligibility determined by any federal, state, or local governmental entity and it is not listed on a state or federal government's terrorism watch list as described in Executive Order 13224. Entities ineligible for federal procurement have Exclusions listed at httos://www.sam.aov/oortal/oublic/SAM/. 25. Shall adopt and implement applicable provisions of the model HIV/AIDS work place guidelines of the Texas Department of Health as required by the Texas Health and Safety Code, Ann., Sec. 85.001, et seq. Please fill in the appropriate information and sign to certify this Exhibit D. Print Name of Authorized Official Nelda Martinez Title Mayor Sub -recipient Organization City of Corpus Christi Signature of Authorized Official Date AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of Oct. 14, 2014 Second Reading Ordinance for the City Council Meeting of Oct. 21, 2014 DATE: TO: September 25, 2014 Ronald L. Olson, City Manager FROM: Robert Rocha, Fire Chief rrocha@cctexas.com (361) 826-3932 Acceptance of a grant from the Coastal Bend Regional Advisory Council in the amount of $2,961.57 to support the Emergency Medical Service (EMS) operation. CAPTION: Ordinance authorizing the City Manager or designee to accept a grant from the Coastal Bend Regional Advisory Council in the amount of $2,961.57 to be used for the purchase of supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department; and appropriating $2,961.57 from the Coastal Bend Regional Advisory Council into the No. 1056 Ambulance Grant Fund to purchase supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department PURPOSE: The Costal Bend Regional Advisory Council on Trauma (RAC) has forwarded to the City a check as a grant in the amount of $2,961.57. This is a direct grant for the benefit of the City's Emergency Medical Service (EMS) operations. No application was required. The EMS Division will purchase twenty-eight EZ- 10 needles at $100.00 each to stock them on the Medical Units. This is the fourteenth year the Coastal Bend Regional Advisory Council has distributed similar grants. These funds originated from the Texas Department of State Health Services and are routed to the Coastal Regional Advisory Council for distribution. Every Emergency Medical Services agency will yin tile twelve county Coastal Bend who is activery participating in the RAC is eligible to receive a portion of these monies. The amount of funding to be received by each agency is based on the number of trauma emergencies the agency responds to on an annual basis. ALTERNATIVES: If we don't accept the grant, we will have to seek alternative funding. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval of ordinance to accept and appropriate grant funds. EMERGENCY / NON -EMERGENCY: Staff is requesting a non -emergency reading to this routine, non -controversial item. DEPARTMENTAL CLEARANCES: Legal Finance — Grants and Office of Management and Budget. FINANCIAL IMPACT: o Operating o Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item $2,961.57 $2,961.57 BALANCE $2,961.57 $2,961.57 Fund(s): Comments: None RECOMMENDATION: Staff recommends approval of this ordinance to execute all documents necessary to accept the grant and appropriate the funds in the amount of $2,961.57. LIST OF SUPPORTING DOCUMENTS: 1) Ordinance Ordinance Authorizing the City Manager or designee to accept a grant from the Coastal Bend Regional Advisory Council in the amount of $2,961.57 to be used for the purchase of supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department; and appropriating $2,961.57 from the Coastal Bend Regional Advisory Council into the No. 1056 Ambulance Grant Fund to purchase supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager or designee is authorized to accept a grant from the Coastal Bend Regional Advisory Council in the amount of $2,961.57 to be used for the purchase of supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department. SECTION 2. That $2,961.57 is appropriated in the No. 1056 Ambulance Grant Fund to purchase supplies to support the delivery of emergency medical services for the Corpus Christi Fire Department. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor AGENDA MEMORANDUM First Reading Item for the City Council Meeting of October 14, 2014 Second Reading Item for the City Council Meeting of October 21, 2014 DATE: September 25, 2014 TO: Ronald L. Olson, City Manager THRU: Gustavo Gonzalez, P.E., Assistant City Manager, Public Works and Utilities GustavoGo@cctexas.com (361) 826-3897 FROM: Valerie H. Gray, P.E., Interim Executive Director, Public Works ValerieG@cctexas.com (361) 826-3729 Mark Van Vleck, P.E., Executive Director, Utilities MarkVV@cctexas.com (361) 826-1874 Engineering Contract Choke Canyon Dam Spillway Gate Rehabilitation CAPTION: Ordinance approving and appropriating a transfer of $4,300,000 from the Unreserved Fund Balance in No. 4050 Choke Canyon Fund Account No. 251400 Reserve for Choke Canyon Maintenance into Water CIP Fund 4080 for Project No. E14043 Choke Canyon Dam Spillway Gate Rehabilitation; amending the FY2014-2015 Operating Budget adopted by Ordinance No. 030294 to increase expenditures in the amount of $4,300,000; and authorizing the City Manager or designee to execute the engineering contract with Freese and Nichols, Inc. of Corpus Christi, Texas in the amount of $381,220 for the Choke Canyon Dam Spillway Gate Rehabilitation for design, bid, and construction phase services. PURPOSE: The purpose of this agenda item is to obtain authority to transfer funds to the Choke Canyon Dam Spillway Gate Rehabilitation project and execute the Freese and Nichols, Inc. contract for the Choke Canyon Dam Spillway Gate Rehabilitation. BACKGROUND AND FINDINGS: Choke Canyon Dam is located in south Texas on the Frio River four miles west of Three Rivers, Texas and approximately 90 miles northwest of the City of Corpus Christi. The dam is comprised of a zoned earthen embankment, a reinforced concrete spillway with seven spillway gates, and an outlet works structure near the center of the dam. Construction of the dam and appurtenant structures, including spillway, occurred between 1976 and 1982. The gates have never been fully recoated since then. In 2013, an inspection of the spillway gates and upstream stoplog slots was performed by Freese and Nichols, Inc. (FNI). Based on observations from the inspection, rehabilitation of the spillway gates including recoating 7 spillway gates, placing new water tight seals, structural and miscellaneous modifications, and stoplog slot resurfacing is needed to increase the useful life of the structure and prevent future corrosion and subsequent section loss and connection deterioration and prevent risk of costly future repairs. The design of these improvements will be done in coordination with, and according to the requirements of the United States Bureau of Reclamation. This project includes engineering design of repair and improvements for the Choke Canyon Dam Spillway Gate Rehabilitation, to include: • Design of engineered repairs and improvements to the spillway gates and stoplogs at Choke Canyon Dam. • Creation of a construction package, to include construction plans, specifications, and other contract documents to allow the City to procure a contractor to perform the necessary rehabilitation, including United States Bureau of Reclamation /Texas Commission on Environmental Quality coordination. • Construction Phase services, to include contractor coordination, inspection, and record drawings. FNI is an engineering firm that is renowned nationwide for its expertise in dam design and consulting services, and have been providing quality professional services at the City's Wesley Seale Dam and Choke Canyon Dam since 1990s. FNI was awarded the Choke Canyon Spillway Gate Rehabilitation in 2003 under City Project No. 8411, but the City has been waiting over 8 years for the lake levels to fall low enough to facilitate this work, as the upstream portions of the work (stoplogs) can only be accomplished during low lake levels. ALTERNATIVES: 1. Authorize the execution of the engineering contract. 2. Do not authorize the execution of the engineering contract. (Not Recommended) OTHER CONSIDERATIONS: This project will use unreserved fund balance. The engineering design service is approximately 5.8 % of the construction estimate. CONFORMITY TO CITY POLICY: Conforms to City Fiscal Policy EMERGENCY / NON -EMERGENCY: Non -Emergency DEPARTMENTAL CLEARANCES: Utilities Department FINANCIAL IMPACT: ® Operating ❑ Revenue ❑Capital Fiscal Year 2014-2015 Project to Date Expenditures Current Year Future Years TOTALS Line Item Budget $4,300,000.00 $4,300,000.00 Encumbered / Expended Amount This Item $381,220.00 $381,220.00 Future Anticipated Expenditures This Project $3,535,000.00 $3,535,000.00 BALANCE $383,780.00 $383,780.00 Fund(s): Choke Canyon Fund Comments: This project requires approximately 970 calendar days with anticipated completion June 2017. The contract will result in the expenditure of an amount not to exceed $381,220. RECOMMENDATION: City Staff recommends approval of the Ordinance as proposed. LIST OF SUPPORTING DOCUMENTS: Ordinance Project Budget Location Map Contract Presentation Ordinance approving and appropriating a transfer of $4,300,000 from the Unreserved Fund Balance in No. 4050 Choke Canyon Fund Account No. 251400 Reserve for Choke Canyon Maintenance into Water CIP Fund 4080 for Project No. E14043 Choke Canyon Dam Spillway Gate Rehabilitation; amending the FY2014-2015 Operating Budget adopted by Ordinance No. 030294 to increase expenditures in the amount of $4,300,000; and authorizing the City Manager or designee to execute the engineering contract with Freese and Nichols, Inc. of Corpus Christi, Texas in the amount of $381,220 for the Choke Canyon Dam Spillway Gate Rehabilitation for design, bid, and construction phase services. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. An amount of $4,300,000 is appropriated from the Unreserved Fund Balance in No. 4050 Choke Canyon Fund Account No. 251400 Reserve for Choke Canyon Maintenance into Water CIP Fund 4080 for Project No. E14043 Choke Canyon Dam Spillway Gate Rehabilitation. SECTION 2. The FY 2014-2015 Operating Budget adopted by Ordinance No. 030294 is amended to increase expenditures in the amount of $4,300,000. SECTION 3. The City Manager or designee is authorized to execute the engineering contract with Freese and Nichols, Inc. of Corpus Christi, Texas in the amount of $381,220 for the Choke Canyon Dam Spillway Gate Rehabilitation for design, bid, and construction phase services. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Nelda Martinez Mayor That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of , , by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the th day of ATTEST: Rebecca Huerta City Secretary Nelda Martinez Mayor PROJECT BUDGET CHOKE CANYON DAM SPILLWAY GATE REHABILITATION FUNDS AVAILABLE: Choke Canyon Fund (2014-2015) $4,300,000 FUNDS REQUIRED: Construction (Estimate) $3,000,000 Contingencies (10%) $300,000 Engineer Fees: Design Engineer (Freese and Nichols, Inc.) THIS CONTRACT $381,220 Other Services (Testing, Laboratory) (Estimate) $20,000 Reimbursements: Administration/Finance (Capital Programs/Capital Budget/Finance) $75,250 Engineering Services (Project Mgmt/Constr Mgmt $129,000 Misc $10,750 TOTAL $3,916,220 PROJECT BUDGET BALANCE $383,780 Project Location PROJECT # E14043 LOCATION MAP NOT TO SCALE CHOKE CANYON DAM SPILLWAY GATE REHABILITATION CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARMENT OF CAPITAL PROGRAMS PAGE 1 OF 1 CITY OF CORPUS CHRISTI CONTRACT FOR PROFESSIONAL SERVICES The City of Corpus Christi, a Texas home rule municipal corporation, P.O. Box 9277, Corpus Christi, Nueces County, Texas 78469-9277 (City) acting through its duly authorized City Manager or Designee (Executive Director of Public Works) and Freese and Nichols, Inc., a Texas corporation, 800 N. Shoreline Blvd., Suite 1600N, Corpus Christi, Nueces County, Texas 78401, (Architect/Engineer — A/E), hereby agree as follows: 1. SCOPE OF PROJECT Choke Canyon Dam Spillway Gate Rehabilitation (E14043) — Choke Canyon Dam is located in south Texas on the Frio River four miles west of Three River, Texas, and approximately 90 miles northwest of the City of Corpus Christi. The primary purpose of the reservoir is municipal and industrial water supply, and it also provides recreational and environmental benefits. The dam is comprised of a zoned earthen embankment, a reinforced concrete spillway with seven spillway tainter gates, and an outlet works structure near the center of the dam. The spillway gates are of original construction; construction of the dam and appurtenant structures, including the spillway, occurred between 1976 and 1982. The gates have never been fully recoated. In 2013, an inspection of the spillway gates and upstream stoplog slots was performed by Freese and Nichols, Inc. Based on observations from the inspection, an assessment report was prepared and recommendations were made for rehabilitation of the gates. This report confirmed the findings of the United States Bureau of Reclamation inspections that have also identified the need for a new coating system to the seven spillway gates. The next phase of the project will be to prepare contract documents for rehabilitation of the spillway gates, including such items as recoating, wire rope replacement, seal replacement, guide shoe refurbishment, and stoplog slot resurfacing. 2. SCOPE OF SERVICES The A/E hereby agrees, at its own expense, to perform professional services necessary to review and prepare plans, specifications, and bid and contract documents. In addition, A/E will provide monthly status updates (project progress or delays, gantt charts presented with monthly invoices) and provide contract administration services, as described in Exhibit "A" and "A-1", to complete the project. Work will not begin on Additional Services until requested by the A/E (provide breakdown of costs, schedules), and written authorization is provided by the Executive Director of Public Works. A/E services will be "Services for Construction Projects"- (Basic Services for Construction Projects") which are shown and are in accordance with "Professional Engineering Services - A Guide to the Selection and Negotiation Process, 1993" a joint publication of the Contract for Engineering (A/E) Services Page 1 of 4 K:\ENGINEERING DATAEXCHANGE\JENNIFER\WATER\E14043 CHOKE CANYON DAM SPILLWAY GATE REHABILITATION\CONTRACT\CONTRACT.DOC Consulting Engineer's Council of Texas and Texas Society of Professional Engineers. For purposes of this contract, certain services listed in this publication as Additional Services will be considered as Basic Services. 3. ORDER OF SERVICES The A/E agrees to begin work on those authorized Basic Services for this contract upon receipt of the Notice to Proceed from the Executive Director of Public Works. Work will not begin on any phase or any Additional Services until requested in writing by the A/E and written authorization is provided by the Executive Director of Public Works. The anticipated schedule of the preliminary phase, design phase, bid phase, and construction phase is shown on Exhibit "A". This schedule is not to be inclusive of all additional time that may be required for review by the City staff and may be amended by or with the concurrence of the Executive Director of Public Works. The Executive Director of Public Works may direct the A/E to undertake additional services or tasks provided that no increase in fee is required. Services or tasks requiring an increase of fee will be mutually agreed and evidenced in writing as an amendment to this contract. A/E shall notify the City of Corpus Christi within three (3) days of notice if tasks requested requires an additional fee. 4. INDEMNITY AND INSURANCE A/E agrees to the mandatory contract indemnification and insurance requirements as set forth in Exhibit "B". 5. FEE The City will pay the A/E a fee, as described in Exhibit "A", for providing services authorized, a revised fee not to exceed $381,220.00 (Three Hundred Eighty -One Thousand Two Hundred Twenty Dollars and Zero Cents). Monthly invoices shall be submitted in accordance with Exhibit "C". 6. TERMINATION OF CONTRACT The City may, at any time, with or without cause, terminate this contract upon seven days written notice to the A/E at the address of record. In this event, the A/E will be compensated for its services on all stages authorized based upon A/E and City's estimate of the proportion of the total services actually completed at the time of termination. 7. LOCAL PARTICIPATION The City Council's stated policy is that City expenditures on contracts for professional services be of maximum benefit to the local economy. The A/E agrees that at least 75% of the work described herein will be performed by a labor force residing within the Corpus Christi Metropolitan Statistical Area (MSA). Additionally, no more than 25% of the work described herein will be performed by a labor force residing outside the Corpus Christi Metropolitan Statistical Area (MSA.) Contract for Engineering (A/E) Services Page 2 of 4 K:\ENGINEERING DATAEXCHANGE\JENNIFER\WATER\E14043 CHOKE CANYON DAM SPILLWAY GATE REHABILITATION\CONTRACT\CONTRACT.DOC 8. ASSIGNABILITY The NE will not assign, transfer or delegate any of its obligations or duties in this contract to any other person without the prior written consent of the City, except for routine duties delegated to personnel of the NE staff. If the NE is a partnership, then in the event of the termination of the partnership, this contract will inure to the individual benefit of such partner or partners as the City may designate. No part of the A/E fee may be assigned in advance of receipt by the NE without written consent of the City. The City will not pay the fees of expert or technical assistance and consultants unless such employment, including the rate of compensation, has been approved in writing by the City. 9. OWNERSHIP OF DOCUMENTS All documents including contract documents (plans and specifications), record drawings, contractor's field data, and submittal data will be the sole property of the City, may not be used again by the A/E without the express written consent of the Executive Director of Public Works. However, the A/E may use standard details that are not specific to this project. The City agrees that any modification of the plans will be evidenced on the plans, and be signed and sealed by a professional engineer prior to re -use of modified plans. 10. DISCLOSURE OF INTEREST NE further agrees, in compliance with City of Corpus Christi Ordinance No. 17112, to complete, as part of this contract, the Disclosure of Interests form. Contract for Engineering (A/E) Services Page 3 of 4 K:\ENGINEERING DATAEXCHANGE\JENNIFER\WATER\E14043 CHOKE CANYON DAM SPILLWAY GATE REHABILITATION \CONTRACT1CONTRACT.DOC CITY OF CORPUS CHRISTI FREESAND NICHOLS, INC. (1.26. i 4- Natasha •2 .i4 - Natasha Fudge, P.E., Date Ron Gilzma, P.E., Date Acting Director, Capital Programs Vice President 800 N. Shoreline Blvd, Suite 1600N Corpus Christi, Texas 78401 RECOMMENDED (361) 561-6500 Office (361) 561-6501 Fax Operating Department Date APPROVED AS TO LEGAL FORM Assistant City Attorney Date for City Attorney APPROVED Office of Management Date and Budget ATTEST Rebecca Huerta, City Secretary Project No: E14043 Fund Source No: 550950-4080-00000-E14043 Fund Name: Water CIP Encumbrance No: Contract for Engineering (A/E) Services Page 4 of 4 K:IENGINEERING DATAEXCHANGEUENNIFERIWATERlE14043 CHOKE CANYON DAM SPILLWAY GATE REHABILITATIONICONTRACTICONTRACT.DOC EXHIBIT "A" CITY OF CORPUS CHRISTI, TEXAS (CHOKE CANYON DAM — SPILLWAY GATE REHABILITATION) (Project No. E14043) 1. SCOPE OF SERVICES A. Basic Services 1. PRELIMINARY PHASE SERVICES: Not Applicable. 2. DESIGN PHASE SERVICES: Spillway Radial Gate and Stoplog Slot Rehabilitation A. Project Management. Establish schedule, coordinate information between FNI and the City of Corpus Christi (City), and other efforts in support of this project. Coordinate Quality Control (QC)/Quality Assurance (QA) by Senior Management and Technical Staff consistent with FNI's established internal quality review processes. Facilitate internal kickoff meeting and coordinate conference calls for client kickoff meeting and progress meetings. 1. Attend and participate in a kickoff meeting with the City at the City's office to review the scope of the project, discuss roles and responsibilities, communication, budget, schedule, and specific project needs. Prepare meeting minutes for review and comment. Finalize meeting minutes based on input from meeting participants. Deliverables: See ExhibitA-1 B. Construction Drawings. The construction drawings will serve as the EXHIBIT "A" Page 1 of 13 Revised June 30, 2014 basis for preparation of quantity estimates, opinion of probable construction cost, technical specifications, and contract bid documents for use during construction. Drawings and Plan Executive Summary will be submitted at a 90% complete level to City personnel for review. Drawings will be submitted as part of the overall contract documents at the 90% level. The following specific tasks will be completed to develop the construction drawings for rehabilitation: 1. Modify designs as necessary for such items as removal of the existing coating, repair of the seven (7) spillway gates, re -coating, refurbishment of the guide shoes, replacement of the side and bottom seals, and other related work as recommended in the June 2013 Spillway Gate Inspection and Assessment Report for the spillway gates at Choke Canyon Dam prepared by FNI. 2. Develop details as necessary for such items as removal of the existing coating, repair of the upstream stoplog slots, re -coating, and other related work as recommended in the June 2013 Spillway Gate Inspection and Assessment Report for the spillway gates at Choke Canyon Dam prepared by FNI. 3. Prepare drawings in AutoCAD to describe the configuration and requirements for rehabilitation. 4. Coordinate drawings with the technical specifications so that work items and materials are covered in the specifications and compatible with notes on the drawings. 5. Perform three (3) site visits to discuss rehabilitation concepts and verify dimensions and existing conditions during the process of developing rehabilitation designs. 6. Calculate and estimate quantities for development of a bid schedule and opinion of probable construction cost. 7. Prepare 90% and Issue for Bid level drawings (include as part of the Contract Document package, refer to Section E — Contract EXHIBIT "A" Page 2 of 13 Revised June 30, 2014 Documents). Deliverables: See Exhibit A-1 C. Technical Specifications. Technical specifications will be prepared to describe the scope, materials, standards and procedures to which the work is to be performed for rehabilitation of the seven (7) spillway gates and stoplog slots. The technical specifications will be prepared as soon as the rehabilitation designs and drawings are advanced to a stage which provides an accurate description of the work involved. Environmental protection requirements will be included to make bidders aware of water quality regulations. The technical specifications will include the requirements for furnishing materials and execution of the work. The technical specifications along with the instructions to bidders, general conditions, special conditions, bid forms, bid schedule, design drawings and reference drawings will form the final contract bid package. Technical specifications will be submitted at a 90% complete level to City personnel for review. Technical specifications will be submitted as part of the overall contract documents at the 90% level. Specific tasks will include the following: 1. Prepare table of contents for the technical specifications and submit to City personnel for review and comment. 2. Prepare technical specifications for rehabilitation procedures in accordance with Construction Specifications Institute (CSI) format and City standards, specifications and general conditions. 3. Coordinate technical specifications with drawings to ensure that notes, material designations, etc. are compatible. EXHIBIT "A" Page 3 of 13 Revised June 30, 2014 4. Prepare 90% and Issue for Bid level technical specifications (include as part of the Contract Document package, refer to Section E — Contract Documents). Deliverables: See Exhibit A-1 D. Opinion of Probable Construction Cost. Quantity estimates for all items of work will be included in the construction bid documents. An engineer's opinion of probable cost will be prepared to include unit costs for defined items of work and total costs for the rehabilitation of the seven (7) spillway gates and stoplog slots. The Engineer's Opinion of Probable Construction Cost (OPCC) will serve as the basis for the City's decision on bidding and as the basis to compare and evaluate bids. The OPCC will take into consideration construction methods and techniques and construction schedules. Specific tasks will include the following: 1. Prepare bid schedule of construction items and quantities for inclusion in bid documents. 2. Identify major cost items and prepare an OPCC estimate. The approach will be to define the equipment, material and manpower needed to accomplish the work and assign appropriate rates to each component included in the work item, and use past experience and engineering judgment to arrive at the estimated unit prices. 3. Prepare estimated construction schedule. Deliverables: See Exhibit A-1 E. Contract Documents. The contract bid documents will enable the City to advertise for competitive bids for rehabilitation of the seven (7) spillway EXHIBIT "A" Page 4 of 13 Revised June 30, 2014 gates and the stoplog slots. City standard format will be used for relevant advertisement, bidding, payment, general terms and conditions, and standard specifications, with technical specifications produced by the project team. The following specific tasks will be completed to develop the contact documents: 1. The civil and structural technical specifications will be incorporated with the City's general conditions and other boiler plate sections including the following: Notice to Bidders Notice to Contractors Contract Forms General Provisions Special Provisions Standard Specifications 2. The draft contract documents, including General Provisions, Special Provisions and Standard and Technical Specifications will be assembled into a contract bid document with drawings, suitable for bidding and performance of the rehabilitation work and submitted to the City for review at 90% completion. 3. Submit 90% level contract documents to United States Bureau of Reclamation (USBR) personnel for review. This will include 90% level drawings and technical specifications. Receive and address comments in writing. 4. Submit 90% level contract documents to City personnel for review. Participate in a meeting at the City's office to discuss City and USBR comments on the 90% contract document package. Prepare meeting minutes, send out for City review, and finalize. 5. Incorporate USBR and City comments into the Issue for Bid contract documents. Deliverables: EXHIBIT "A" Page 5 of 13 Revised June 30, 2014 See Exhibit A-1 The City staff will: a) Designate an individual to have responsibility, authority, and control for coordinating activities for the construction contract awarded. b) Provide the budget for the Project specifying the funds available for the construction contract. c) Provide the City's standard specifications, standard detail sheets, standard and special provisions, and forms for required bid documents. B. Additional Services 3. BID PHASE SERVICES: Spillway Radial Gate and Stoplog Slot Rehabilitation A. Support During Bidding Process. Providing support to City personnel during the bidding period will help ensure that the drawings and specifications are being interpreted in accordance with the designer's intent. Specific tasks will include the following: 1. Participate in the pre-bid conference and provide a meeting agenda for critical construction activities and elements impacted the project. 2. Assist the City in solicitation of bids by identification of prospective bidders and review of bids by solicited interests. 3. Review all pre-bid questions and submissions concerning the bid documents and prepare, in the City's format, for the Engineering Services' approval, any addenda or other revisions necessary to inform contractors of approved changes prior to bidding. 4. Attend bid opening, analyze bids, evaluate, prepare bid tabulation, and make recommendation concerning award of the contract. EXHIBIT "A" Page 6 of 13 Revised June 30, 2014 5. In the event the lowest responsible bidder's bid exceeds the project budget as revised by the Engineering Services in accordance with the A/E's design phase estimate required above, the Engineer will, at its expense, confer with City staff and make such revisions to the bid documents as the City staff deems necessary to re -advertise that particular portion of the Project for bids. 6. Prepare PowerPoint presentation in City format for City Council Meeting. Deliverables: See Exhibit A-1 The City staff will: a) Arrange and pay for printing of all documents and addenda to be distributed to prospective bidders. b) Advertise the Project for bidding, maintain the list of prospective bidders, receive and process deposits for all bid documents, issue (with the assistance of the A/E) any addenda, prepare and supply bid tabulation forms, and conduct bid opening. c) Receive the Engineer's recommendation concerning bid evaluation and recommendation and prepare agenda materials for the City Council concerning bid awards. d) Prepare, review and provide copies of the contract for execution between the City and the contractor. Deliverables: See Exhibit A-1 4. CONSTRUCTION PHASE SERVICES: Spillway Radial Gate and Stoplog Slot Rehabilitation Provide professional Construction Phase Services (CPS) to assist in EXHIBIT "A" Page 7 of 13 Revised June 30, 2014 obtaining a completed project in accordance with the purpose and intent of the Construction Contract Documents. The overall construction schedule for the seven (7) spillway gates and stoplog slot rehabilitation is estimated to be 630 calendar days (approximately 21 months). Any effort directly or indirectly related to a time extension to the contractor and project duration will be an additional service for FNI. Also, any effort not included in this scope will be considered an additional service for FNI. Upon completion of the bid and negotiation phases, FNI shall proceed with the performance of construction phase services as described below. FNI shall endeavor to protect the City in providing these services, however, it is understood that FNI does not guarantee the contractor's performance, nor is FNI responsible for supervision of the contractor's operation and employees. FNI shall not be responsible for the means, methods, techniques, sequences or procedures of construction selected by the contractor, or any safety precautions and programs relating in any way to the condition of the premises, the work of the contractor or any subcontractor. FNI shall not be responsible for the acts or omissions of any person (except its own employees or agents) at the project site or otherwise performing any of the work of the project. A. Project Management. 1. Attend and participate in a pre -construction conference with the City and contractor, review construction schedules prepared for the Owner by the contractor pursuant to the requirements of the Construction Contract Documents, and review proposed estimate of monthly cash requirements of the project from information provided through the City by the contractor. 2. Establish communication procedures between the City and contractor. Establish E -Builder, FNI Construction Management software, as the electronic web -based project documentation management system for distributing submittals, submittal responses, and construction related documents. 3. Coordinate and/or cause the timely coordination (distribution, receipt and tracking) of project documents between all parties EXHIBIT "A" Page 8 of 13 Revised June 30, 2014 including City, the contractor, FNI, and FNI's subcontractors/subconsultants as appropriate. 4. Assist the City in preparing monthly reports of construction progress for the USBR. Reports will describe construction progress in general terms and summarize the construction schedule, including pending and approved contract modifications. 5. Review and make recommendations to the City regarding contractor's progress payment requests. B. Contractor Submittal Reviews. Review contractor's submittals throughout construction for consistency with plans, specifications, and project requirements, including the following: 1. Review contractor's submittals, including requests for information, modification requests, shop drawings, schedules, and other submittals in accordance with the requirements of the Construction Contract Documents for the project. Recommend action to the City for all submittals. It is anticipated that submittal reviews will consist of the following: a. Record Data/Certified Test Reports/Lab Test Reports — 8 b. Requests for information — 10 c. Schedule of Progress — 27 d. Submittals and Shop Drawings — 19 2. Provide technical information for inclusion in change orders or requests for quotes. Engineering analyses, plans, and specifications required to implement a change to the project design is considered an additional service and will be as agreed to by the City in writing prior to work being performed. 3. Review all contract modifications and field orders for conformance with the contract documents. Assist in negotiating contractor costs for design change orders. Prepare approvals of significant design modifications and substitutions of materials and provide written reports to the City. EXHIBIT "A" Page 9 of 13 Revised June 30, 2014 Deliverables: See Exhibit A-1 C. Site Visits. Make visits appropriate to the stage of construction to the site to observe the progress and the quality of work and attempt to determine in general if the work is proceeding in accordance with the Construction Contract Documents. In this effort, FNI shall endeavor to protect the City against defects and deficiencies in the work of the contractor and shall report any observed deficiencies or non -conforming work to the City. 1. Monthly Meeting Visits. Twenty one (21) Monthly Construction Progress meetings and construction site visits for the Engineer or Record, or his designee, immediately prior to, or subsequent of, progress meetings. 2. Additional Stoplog Slot Specific Site Visits. Two (2) site visits are reserved for special circumstances as required to support the construction of the project or as directed by the City. 3. Spillway Gate Site Visits. Twenty one (21) site visits are anticipated to perform inspection and coordination on the seven (7) spillway gates (3 per spillway gate, outside of other site visits). The third visit for each gate will include observation of wet and dry tests and serve as the substantial walkthrough inspection for each gate. 4. Additional Spillway Gate Site Visits. Six (6) site visits are reserved for special circumstances as required to support the construction of the project or as directed by the City. Visits in excess of the specified number above in Items 1-4 are considered an additional service. Deliverables: See Exhibit A-1 D. Completion Activities. Prepare Record Drawings and a project completion report as follows: EXHIBIT "A" Page 10 of 13 Revised June 30, 2014 1. Revise the construction drawings in accordance with the information furnished by the contractor reflecting changes in the project made during construction. "Red Lines" will be developed and maintained by the contractor and approved by the City's inspector. Two (2) sets of prints of Record Drawings shall be provided by FNI to the City. 2. Prepare and submit a project completion report summarizing the construction phase observations by FNI. 3. Conduct, in company with the City, a one-year inspection (one day visit) of the project to evaluate the condition and performance of the spillway gates and stoplog slots. Provide a technical memorandum summarizing findings from the site observations. Deliverables: See Exhibit A-1 The City staff will: a) Prepare applications/estimates for payments to contractor. b) Conduct the final acceptance inspection with the Engineer. In addition, for all phases, basic or additional service, City will provide the following to FNI as applicable: 1. Coordinate participation of staff for project meetings and notify all parties of the time and place of the meeting; 2. Schedule conference calls and provide for notice of the time and method of connection to all parties; 3. Attend scheduled meetings; 4. Receive and review all critiques, comments, and documents submitted by FNI; 5. Distribute copies of draft documents to City staff for review and comment; 6. Facilitate pre-bid conference and provide access to the facilities during the pre-bid conference; EXHIBIT "A" Page 11 of 13 Revised June 30, 2014 7. Facilitate pre -construction conference. 2. SCHEDULE Spillway Radial Gate and Stoplog Slot Rehabilitation A. A/E will provide Basic Services as shown below: 90% Contract Documents: Within 120 calendar days of receiving NTP. Issue for Bid Contract Documents: Within 35 calendar days of City and USBR comments on 90% level Contract Documents. B. A/E will provide Additional Services as shown below: Site Visit Memorandums: Within 2 calendar days of site visit. Substantial Completion punch lists for each spillway gate: within 3 calendar days of each walkthrough. Record Drawings: Within 60 calendar days of receiving all approved "Red Lines" from contractor. Project Completion Report: Within 60 calendar days of issuance of certificate of completion. One Year Inspection Memorandum: Within 5 calendar days of site visit which will occur approximately 65 days prior to end of maintenance guaranty period. Provide the services above authorized in addition to those items shown on Exhibit "A-1" Task List, which provides supplemental description to Exhibit "A". Note: The Exhibit "A-1" Task List does not supersede Exhibit "A". SCHEDULE Date Activity November 3, 2014 NTP March 2, 2014 90% submittal April 6, 2015 City/USBOR Review May 11, 2015 100% Final Submittal May 25, 2015 Advertise for Bids June 3, 2015 Pre -Bid Conference EXHIBIT "A" Page 12 of 13 Revised June 30, 2014 3. FEES June 17, 2015 Receive Bids July 28, 2015 Contract Award August 28, 2015 Begin Construction June 30, 2017 Complete Construction A. Fee for Basic Services. The City will pay the A/E a fixed fee for providing for all "Basic Services" authorized as per the table below. The fees for Basic Services will not exceed those identified and will be full and total compensation for all services outlined in Section I.A.1-4 above, and for all expenses incurred in performing these services. The fee for this project is subject to the availability of funds. The Engineer may be directed to suspend work pending receipt and appropriation of funds. For services provided in Section I.A.1-4, A/E will submit monthly statements for basic services rendered. In Section I.A.1-3, the statement will be based upon A/E's estimate (and with City's concurrence) of the proportion of the total services actually completed at the time of billing. For services provided in Section I.A.4, the statement will be based upon the percent of completion of the construction contract. City will make prompt monthly payments in response to NE's monthly statements. B. Fee for Additional Services. For services authorized by the Director of Engineering Services under Section I.B. "Additional Services," the City will pay the A/E a not -to -exceed fee as per the table below: C. Summary of Fees Fee for Basic Services 1. Preliminary Phase N/A 2. Design Phase $ 192,540 Subtotal Basic Services Fees $ 192,540 Fee for Additional Services 3. Bid Phase $ 16,300 4. Construction Phase $ 172,380 Subtotal Additional Services Fees $ 188,680 Total Authorized Fee $ 381,220 EXHIBIT "A" Page 13 of 13 Revised June 30, 2014 EXHIBIT "A-1" TASK LIST (Provides supplemental description to Exhibit "A". Exhibit "A-1" Task List does not supersede Exhibit "A.") CITY OF CORPUS CHRISTI, TEXAS CHOKE CANYON DAM — SPILLWAY GATE REHABILITATION (Project No. E14043) Basic Services: Spillway Radial Gate and Stoplog Slot Rehabilitation 1) Project Kickoff Meeting - Provide (1) electronic copy (.pdf) of the final meeting minutes 2) Technical Specifications Table of Contents (TOC) - Provide (1) electronic copy (.pdf) of the TOC. 3) 90% Review Submittal — Provide (5) hardcopies and (1) electronic copy (.pdf) of the drawings/specifications/other contract documents and Plan Executive Summary to include Opinion of Probable Construction Costs (OPCC) 4) 90% Review Meeting — Provide (1) electronic copy (.pdf) of the final meeting minutes 5) Issued for Bid Submittal — Provide (5) hard copies and 1 electronic copy (.pdf) of the Bid Set and OPCC Additional Services: Spillway Radial Gate and Stoplog Slot Rehabilitation 6) Bid Support — Provide a pre-bid meeting agenda and provide RFI response or addenda in response to questions from contractors 7) Bid Support — Provide (1) electronic copy of the Bid Tabulation 8) Bid Support — Provide (1) electronic copy of a written award recommendation based on bid evaluations 9) Construction Support — Provide contractor submittal review comments and responses EXHIBIT "A-1" Page 1 of 2 Revised April 2010 10) Construction Support — Provide monthly construction progress reports 11) Construction Support— Provide (1) electronic copy of site visit memoranda after site visits 12) Construction Support — Provide (1) electronic copy of the substantial completion punch list 13) Construction Support — Provide (1) electronic and (3) hard copies of record drawings 14) Construction Support — Provide (1) electronic and (3) hard copies of the project Completion Report 15) Construction Support — Provide (1) electronic and (3) hard copies of the one- year inspection technical memorandum EXHIBIT "A-1" Page 2 of 2 Revised April 2010 EXHIBIT "B" MANDATORY INSURANCE REQUIREMENTS & INDEMNIFICATION FOR A/E PROFESSIONAL SERVICES/CONSULTANT SERVICES (Revised November 2013) A. Consultant must not commence work under this agreement until all insurance required herein has been obtained and such insurance has been approved by the City. The Consultant must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been obtained. B. Consultant must furnish to the City's Risk Manager, two (2) copies of Certificates of Insurance, showing the following minimum coverages by insurance company(s) acceptable to the City's Risk Manager. The City must be named as an additional insured for all liability policies, and a blanket waiver of subrogation is required on all applicable policies. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30 -Day Written Notice of Cancellation, non -renewal or material change required on all certificates Bodily Injury & Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Broad Form 2. Premises - Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors $1,000,000 COMBINED SINGLE LIMIT AUTOMOBILE LIABILITY to included 1. Owned vehicles 2.. Hired — Non -owned vehicles $1,000,000 COMBINED SINGLE LIMIT PROFESSIONAL LIABILITY including: Coverage provided shall cover all employees, officers, directors and agents 1. Errors and Omissions $1,000,000 per claim / $2,000,000 aggregate (Defense costs not included in face value of the policy) If claims made policy, retro date must be prior to inception of agreement; have extended reporting period provisions and identify any limitations regarding who is an Insured WORKERS' COMPENSATION EMPLOYERS' LIABILITY Which Complies with the Texas Workers Compensation Act 500,000/500,000/500,000 EXHIBIT "B" Page 1 of 3 K:\Engineering DataExchange\JENNIFER\FORMS\Exhibit B for Large Freese and Nichols - Insurance & Indemnification.docx C. In the event of accidents of any kind, Consultant must furnish the Risk Manager with copies of all reports within (10) ten days of accident. D. Consultant must obtain workers' compensation coverage through a licensed insurance company in accordance with Texas law. The contract for coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The coverage provided must be in amounts sufficient to assure that all workers' compensation obligations incurred will be promptly met. E. Consultant's financial integrity is of interest to the City; therefore, subject to Successful Consultant's right to maintain reasonable deductibles in such amounts as are approved by the City, Consultant shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A -VII. F. The City shall be entitled, upon request and without expense, to receive copies of the policies, declarations page and all endorsements thereto as they apply to the limits required by the City, and may require the deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any such policies). Consultant shall be required to comply with any such requests and shall submit a copy of the replacement certificate of insurance to City at the address provided below within 10 days of the requested change. Consultant shall pay any costs incurred resulting from said changes. All notices under this Article shall be given to City at the following address: City of Corpus Christi Attn: Risk Management P.O. Box 9277 Corpus Christi, TX 78469-9277 Fax: (361) 826-4555 G. Consultant agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: i. Name the City and its officers, officials, employees, volunteers, and elected representatives as additional insured by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, with the exception of the workers' compensation and professional liability policies; ii. Provide for an endorsement that the "other insurance" clause shall not apply to the City of Corpus Christi where the City is an additional insured shown on the policy; iii. Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and iv. Provide thirty (30) calendar days advance written notice directly to City of any suspension, cancellation, non -renewal or material change in coverage, and not less than ten (10) calendar days advance written notice for nonpayment of premium. EXHIBIT "B" Page 2 of 3 K:\Engineering DataExchange\JENNIFER\FORMS\Exhibit B for Large Freese and Nichols - Insurance & Indemnification.docx H. Within five (5) calendar days of a suspension, cancellation, or non -renewal of coverage, Successful Consultant shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Consultant's performance should there be a lapse in coverage at any time during this contract. Failure to provide and to maintain the required insurance shall constitute a material breach of this contract. I. In addition to any other remedies the City may have upon Consultant's failure to provide and maintain any insurance or policy endorsements to the extent and within the time herein required, the City shall have the right to order Consultant to stop work hereunder, and/or withhold any payment(s) which become due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof. J. Nothing herein contained shall be construed as limiting in any way the extent to which Successful Consultant may be held responsible for payments of damages to persons or property resulting from Consultant's or its subcontractors' performance of the work covered under this agreement. K. It is agreed that Consultant's insurance shall be deemed primary and non-contributory with respect to any insurance or self insurance carried by the City of Corpus Christi for liability arising out of operations under this contract. L. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. INDEMNIFICATION AND HOLD HARMLESS Consultant agrees to indemnify, save harmless and defend the City of Corpus Christi, and its agents, servants, and employees, and each of them against and hold it and them harmless from any and all lawsuits, claims, demands, liabilities, losses and expenses, including court costs and attorneys' fees, for or on account of any injury to any person, or any death at any time resulting from such injury, or any damage to any property, which may arise or which may be alleged to have arisen out of the negligent performance of Consultant's services in connection with the work covered by this contract. The foregoing indemnity shall apply except if such injury, death or damage is caused by the sole or concurrent negligence of the City of Corpus Christi, its agents, servants, or employees or any other person indemnified hereunder. EXHIBIT "B" Page 3 of 3 K:\Engineering DataExchange\JENNIFER\FORMS\Exhibit B for Large Freese and Nichols - Insurance & Indemnification.docx Basic Services: Preliminary Phase Design Phase Bid Phase Construction Phase Subtotal Basic Services Additional Services: Permitting Warranty Phase Inspection Platting Survey 0 & M Manuals SCADA Subtotal Additional Services Summary of Fees Basic Services Fees Additional Services Fees Total of Fees COMPLETE PROJECT NAME Project No. XXXX Invoice No. 12345 Invoice Date: Sample form for: Payment Request Revised 07/27100 Total Amount Previous Total Percent Contract Amd No. 1 Amd No. 2 Contract Invoiced Invoice Invoice Complete $1,000 $0 $0 $1,000 $0 $1,000 $1,000 100% 2,000 1,000 0 3,000 1,000 500 1,500 5096 500 0 250 750 0 0 0 0% 2,500 0 1,000 3,500 0 0 0 096 $6,000 $1,000 $1,250 $8,250 $750 $1,500 $2,500 30% $21000 $0 $0 $2,000 $500 $0 $500 25% 0 1,120 0 1,120 0 0 0 096 0 0 1,627 1,627 0 0 0 0% TBD TBD TBD TBD TBD TBD TBD 0% TBD TBD TBD TBD TBD TBD TBD 0% TBD TBD TBD TBD TBD TBD TBD 096 $2,000 $1,120 $1,627 $4,747 $500 $0 $500 11% $6,000 $1,000 $1,250 $8,250 $750 $1,500 $2,500 30% 2,000 1,120 1,627 4,747 500 0 500 11i $8,000 $2,120 $2,877 $12,997 $1,250 $1,500 $3,000 23% SUPPLIER NUMBER TO BE ASSIGNED BY CITY - PURCHASING DIVISION City of Corpus Christi CITY OF CORPUS CHRISTI DISCLOSURE OF INTEREST City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City to provide the following information. Everyquestion must be answered. If the question is not applicable, answer with `NA". See reverse side for Filing Requirements, Certifications and definitions. COMPANY NAME: Freese and Nichols P. O. BOX: N/A 800 N. Shoreline Blvd, STREET ADDRESS: Suite 1600N CITY: Corpus Christi ZIP: FIRM IS: 1. Corporation 2. Partnership 4. Association 5. Other B 78401 3. Sole Owner ❑ DISCLOSURE QUESTIONS If additional space is necessar=y, please use the reverse side of this page or attach separate sheet. 1. State the names of each `employee" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm.' Name Job Title and City Department (if known) N 2. State the names of each "official" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name � l� Title 3. State the names of each "board member" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name /25 - Committee Board, Commission or 4. State the names of each employee or officer of a "consultant" for the City of Corpus Christi who worked on any matter related to the subject of this contract and has an ownership interest" constituting 3% or more of the ownership in the above named "firm." Name t-)ke Consultant FILING REQUIREMENTS If a person who requests official action on a matter knows that the requested action will confer an economic benefit on any City official or employee that is distinguishable from the effect that the action will have on members of the public in general or a substantial segment thereof, you shall disclose that fact in a signed writing to the City official, employee or body that has been requested to act in the matter, unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2-349 (d)] CERTIFICATION I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to the City of Corpus Christi, Texas as changes occur. Certifying Person: Ron Guzman, P.E. Title: Principal (Type or Print) Signature of Certifying Person: DEFINITIONS Date: t • S . 1 a. "Board member." A member of any board, commission, or committee appointed by the City Council of the City of Corpus Christi, Texas. b. "Economic benefit". An action that is likely to affect an economic interest if it is likely to have an effect on that interest that is distinguishable from its effect on members of the public in general or a substantial segment thereof. c. "Employee." Any person employed by the City of Corpus Christi, Texas either on a full or part-time basis, but not as an independent contractor. d. "Firm." Any entity operated for economic gain, whether professional, industrial or commercial, and whether established to produce or deal with a product or service, including but not limited to, entities operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint stock company, joint venture, receivership or trust, and entities which for purposes of taxation are treated as non-profit organizations. e. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus Christi, Texas. f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in a firm, including when such interest is held through an agent, trust, estate, or holding entity. "Constructively held" refers to holdings or control established through voting trusts, proxies, or special terms of venture or partnership agreements." "Consultant." Any person or firm, such as engineers and architects, hired by the City of Corpus Christi for the purpose of professional consultation and recommendation. g. Choke Canyon Dam Spillway Gate Rehabilitation Corpus Chr'sti Capital Programs Council Presentation October 14, 2014 Project Scope • Engineering repairs and improvements to seven spillway gates and stoplogs • Creation of construction documents; and • Construction Phase services. Corpus Chr sti Capital Programs PROJECT LOCATION Corpus Project Schedule co) Corpus Chr ski Capital Programs 2014 2015 2016 2017 D MIA M Design JIJIA Bid & Award SON D JIFIMIA MJJA SON D MIA M J Construction Project Estimate: 970 Calendar Days 32 Months Projected Schedule reflects City Council award in October 2014 with anticipated construction completion in June 2017. Project Budget Corpus Chr sti Capital Programs FUNDS AVAILABLE: Choke Canyon Fund (2014-2015) $4,300,000 FUNDS REQUIRED: Construction (Estimate) $3,000,000 Contingencies (10%)... $300,000 Engineer Fees: Design Engineer (Freese and Nichols, Inc.) THIS CONTRACT $381,220 Other Services (Testing, Laboratory) (Estimate) $20,000 Reimbursements $215,000 TOTAL $3,916,220 PROJECT BUDGET BALANCE $383,780 AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting of October 14, 2014 Second Reading Ordinance for the City Council Meeting October 21, 2014 DATE: September 22, 2014 TO: FROM: Ronald L. Olson, City Manager Mike Culbertson (361) 882-7448 mculbertson@ccredc.com Type A Grant for Conexia Inc CAPTION: Ordinance approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and Conexia Inc ("Conexia") to provide a grant of up to $160,000, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Conexia Business Incentive Agreement for the creation of jobs; and appropriating $160,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund for said business incentive grant from the Type A Corporation to Conexia; and changing the FY 2014-2015 operating budget, adopted by Ordinance No. 030294, by increasing proposed expenditures by $160,000. PURPOSE: Conexia will create jobs in Corpus Christi. They will create 80 full-time employees with an annual payroll of $5,840,000. BACKGROUND AND FINDINGS: Conexia plans to lease space in downtown Corpus Christi and operate their specialized information technology design, development, maintenance and transaction processing services to health payers (e.g., health plans, Medicaid programs, workers compensation carriers, etc.). They will service clients in Texas and in the United States ramping up to 80 head office personnel within five years. ALTERNATIVES: The company is not eligible for any other incentives. OTHER CONSIDERATIONS: Conexia brings a different industry into our economy and great wages. This grant will be used for the creation of jobs. CONFORMITY TO CITY POLICY: This project is consistent with the City's stated goals of promoting economic development and incentivizing business to expand and thrive in Corpus Christi. EMERGENCY / NON -EMERGENCY: Non -emergency DEPARTMENTAL CLEARANCES: Engineering FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget 160,000 160,000 Encumbered / Expended Amount This item 160,000 160,000 BALANCE 0 0 Fund: Type A 1140 RECOMMENDATION: Staff recommends approval of the Type A Grant to Conexia Inc in the amount of $160,000 for the creation of jobs. LIST OF SUPPORTING DOCUMENTS: Ordinance - Conexia Agreement - Conexia Business Service Agreement - Conexia Page 1 of 3 Ordinance Approving a Business Incentive Agreement between the Corpus Christi Business and Job Development Corporation ("Type A Corporation") and Conexia Inc ("Conexia") to provide a grant of up to $160,000, for the creation of jobs and authorizing the City Manager, or designee, to execute a Business Incentive Project Service Agreement with the Type A Corporation regarding implementation and administration of the Conexia Business Incentive Agreement for the creation of jobs; and appropriating $160,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund for said business incentive grant from the Type A Corporation to Conexia; and changing the FY 2014- 2015 operating budget, adopted by Ordinance No. 030294, by increasing proposed expenditures by $160,000. Whereas, the 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 Conexia for the creation of at least 80 full-time jobs with an average annual salary of at least $73,000 and annual payroll of at least $5,840,000 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 creation of jobs between the Type A Corporation and Conexia; Whereas, there is a need for a business incentive project service agreement between the City and the Type A Corporation for the implementation and administration of the business incentive agreement for the creation of jobs between the Type A Corporation and Conexia. 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 of jobs between the Type A Corporation and Conexia that provides for the creation of jobs within the City of Corpus Christi, is approved. SECTION 2. That the City Manager, or designee, is authorized to execute a project service agreement between the City and Type A Corporation for the implementation and administration of the business incentive agreement with Conexia, which is attached to this resolution as Exhibit B. ORDINANCE - Conexia Page 2 of 3 SECTION 3. That $160,000 from the unreserved fund balance in the No. 1140 Business/Job Development Fund is appropriated for a business incentive grant from the Type A Corporation to Conexia for the creation of jobs. SECTION 4. That Ordinance No. 030294, which adopted the FY 2014-2015 Operating Fund, is changed to increase proposed expenditures in the No. 1140 Business/Job Development Fund by $160,000 for a business incentive grant from the Type A Corporation to Conexia for the improvements to their meat processing facility and the creation of jobs. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary Nelda Martinez Mayor APPROVED: day of , 2014. Corpus Christi, Texas That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb ORDINANCE - Conexia Page 3 of 3 That the foregoing ordinance was read for the second time and passed finally on this the day of , 2014, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the day of , 2014. ATTEST: Rebecca Huerta City Secretary ORDINANCE - Conexia Nelda Martinez Mayor BUSINESS INCENTIVE AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND CONEXIA INC FOR CREATION OF JOBS This Business Incentive Agreement for Capital investments and the Creation and Retention of Jobs ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Conexia Inc ("Conexia"), 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 01, Title 12, Texas Local Government Code, Section 504.002 et seq, ("the Act"), 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 ("Type A Guidelines"), which the City Council approved on November 9, 2010; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Corporation; WHEREAS, Conexia provides specialized information technology design, development, maintenance and transaction processing services to health payers (e.g., health plans, Medicaid programs, workers compensation carriers, etc.); WHEREAS, Conexia proposes to initially invest approximately $109,000 over a five year period; WHEREAS, on September 15, 2014 the Board determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to Conexia, Page 1 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 through this Agreement with Conexia that will result in the creation of eighty full-time jobs, with an estimated annual average salary of $73,000. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and Conexia 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 five 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 !n order to count as a created job under this Agreement, a "job" must be as defined in the Type A Guidelines as a full-time employee, contractor, consultant, or leased employee who has a home address in the Corpus Christi MSA. b. Conexia 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 the Business. c. Conexia agrees to provide Corporation with a sworn certificate by authorized representatives of each business assisted under this Agreement certifying the number of full-time permanent employees employed by the business. d. Conexia shall ensure that the Corporation is allowed reasonable access to personnel records of the businesses assisted under this Agreement. 5. Utilization of Local Contractors and Suppliers. Conexia agrees to exercise reasonable efforts in utilizing local contractors and suppliers in the construction of the Project, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency in the normal course of business, with a goal of 50% of the total dollar amount of all construction contracts and supply agreements being paid to local contractors and suppliers. 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. Conexia agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Conexia to comply with the Local Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Conexia is in compliance with this requirement. Failure to substantially comply with Page 2 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. 6. Utilization of Disadvantaged Business Enterprises ("DBE"). Conexia agrees to exercise reasonable efforts in utilizing contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically -underutilized business enterprises. In order to qualify as a business enterprise under this provision, the firm must be certified by the City, the Regional Transportation Authority or another governmental entity in the jurisdiction of the home office of the business as complying with state or federal standards for qualification as such an enterprise. Conexia agrees to a goal of 30% of the total dollar amount of all construction contracts and supply agreements being paid to disadvantaged business enterprises, with a priority made for disadvantaged business enterprises which are local. Conexia agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Conexia to comply with the DBE Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Conexia is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. For the purposes of this section, the term "local" as used to describe contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically -underutilized business enterprises includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. 7. Living Wage Requirement. In order to count as a permanent full-time job under this agreement, the job should provide a "living wage" for the employee. The target living wage under this agreement is that annual amount equal or greater than poverty !evel for a family of three, established by the U.S. Department of Health and Human Services Poverty Guidelines, divided by 2,080 hours per year for that year. 8. Health Insurance. To qualify for this incentive, an employer shall certify that it has offered a health insurance program for its employees during the term of the Agreement. 9. Warranties. Conexia warrants and represents to Corporation the following: a. Conexia 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. Conexia has the authority to enter into and perform, and will perform, the terms of this Agreement to the best of its ability. c. Conexia 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 Page 3 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 governmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid , during the term of this Agreement. d. Conexia has received a copy of the Act, 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 person executing this Agreement on behalf of Conexia is duly authorized to execute this Agreement on behalf of Conexia. f. Conexia does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Conexia is convicted of a violation under §U.S.C. Section 1324a(f), Conexia shall repay the payments received under this Agreement to the City, with interest at the Wall Street Journal Prime Rate, not later than the 120th day after the date Conexia has been notified of the violation. 10. Compliance with Laws. During the Term of this Agreement, Conexia shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 11. Non -Discrimination. Conexia covenants and agrees that Conexia 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. !f the Corporation or Conexia 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 Conexia 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. 13. Assignment. Conexia 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. Conexia 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 Page 4 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 manner connected with, or are claimed to arise out of or be in any manner connected with Conexia 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. Conexia 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 by Conexia. The following events constitute a default of this Agreement by Conexia: a. The Corporation or City determines that any representation or warranty on behalf of Conexia 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; b. Any judgment is assessed against Conexia or any attachment or other levy against the property of Conexia with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 120 days. c. Conexia makes an assignment for the benefit of creditors. d. Conexia files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. e. If taxes owed by Conexia become delinquent, and Conexia fails to timely and properly follow the legal procedures for protest or contest. f. Conexia changes the general character of business as conducted as of the date this Agreement is approved by the Corporation. g. Conexia fails to comply with one or more terms of this Agreement. 16. Notice of Default. Should the Corporation or City determine that Conexia is in default according to the terms of this Agreement, the Corporation or City shall notify Conexia in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for Conexia to cure the event of default. 17. Results of Uncured Default by Conexia. 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 Conexia, 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. Page 5 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 a. Conexia shall immediately repay all funds paid by Corporation to them under this Agreement. b. Conexia shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation if not immediately repaid upon demand from the Corporation. c. Upon payment by Conexia of all sums due, the Corporation and Conexia shall have no further obligations to one another under this Agreement. 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 Conexia's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Conexia 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. Conexia specifically agrees that Corporation shall only be liable to Conexia for the actual amount of the money grants to be conveyed to Conexia, and shall not be liable to Conexia 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. 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 Page 6 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 supporting documentation, as requested. Payments to be made shall also require a written request from Conexia to be accompanied by all necessary supporting documentation. 20. The parties mutually agree and understand that funding under this Agreement is subject to annual appropriations by the City Council; that each fiscal year's funding must be included in the budget for that year; and the funding is not effective until approved by the City Council. 21. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: Conexia: Conexia Inc Attn: Matthew Daley 610 Uptown Blvd Suite 2000 Cedar Hill, Texas 75104 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. 22. Incorporation of other documents. The Type A Guidelines, as amended, are incorporated into this Agreement. 23. 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. Page 7 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 24. Relationship of Parties. In performing this Agreement, both the Corporation and Conexia 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. 25. 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. 26. 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. 27. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 28. Sole Agreement. This Agreement constitutes the sole Agreement between Corporation and Conexia. Any prior Agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 29. 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. (Remainder of this page intentionally left blank) Page 8 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 Corpus Christi Business & Job Development Corporation By: Bart Braselton President Date: Attest: By: Rebecca Huerta Assistant Secretary Conexia Inc By: Matthew Daley Vice President Date: 9' /z -Z/. THE STATE OF TEXAS COUNTY OF DC11 V)(5 This instrument was acknowledged before me on S mb, 2014, by Matthew Daley, Vice President, for Conexia Inc, a Delaware corporation, on behalf of the corporation. N6t ry P1,11 ublic State of Texas � Zulema Gonzalez s =tri Commission Expires '',,�� 07-05-2017 Page 9 of 9 Type A Business Incentive Jobs Creation and Retention Agreement Conexia 09 16 14 EXHIBIT A PERFORMANCE MEASURES AND CORPORATION GRANTS 1. Conexia shall over the term of this Agreement, create eighty full-time jobs, with an average annual salary of $73,000 as described in the schedule below. Year Number of New Jobs Number of Retained Jobs Annual Payroll Capital Investment 1 8 0 584,000 109,000 2 4 8 876,000 0 3 32 12 3,212,000 0 4 10 44 3,942,000 0 5 26 54 5,840,000 0 a. Grants, not to exceed $64,000 per year and a cumulative total of $160,000 over five years, are calculated as $2,000 per job created/retained basis. b. Should the Company fall below the Performance Standards in any one year, the Company shall receive a reduced percentage of the Cash Incentive in effect that year. Such reduction will be in that percentage equal to the percentage the Company's performance falls below the Performance Standards. However if the Company falls below 70% then there is no payment for that year. 2. The Corporation will award a grant to Conexia based on the formula above, payable not later than June 15 of each year if Conexia creates/retains the minimum number of jobs in the preceding year described in paragraph 1 above (collectively, the "annual performance benchmarks"). 3. Conexia will display signage that states that they are recipients of Type A funding. This signage will be provided to Conexia by the Board and will be displayed in a location that is visible to a visitor to their facility. A-1 Type A Business Incentive Agreement Jobs Creation and Retention Conexia Inc 09 16 14 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 ("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 ("the Act"), 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 City Council approved the Corporation's amended Guidelines and Criteria for Granting Business Incentives on October 18, 2010, which the City Council approved on November 9, 2010; WHEREAS, Section 501.073 of the Act requires the City Council to approve all programs and expenditures of the Type A Corporation; WHEREAS, Conexia Inc ("Conexia") has submitted a proposal to the Type A Corporation for a $160,000 grant for the creation of 80 new jobs in their IT support service facility; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas, to fund Conexia's creation of 80 new jobs; and WHEREAS, the Type A Corporation and Conexia have executed a business incentives agreement for the creation of jobs related to Conexia's IT support service facility. 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 Business Incentive Agreement for the Creation of Jobs between the Type A Corporation and Conexia related to Conexia IT support facility in Corpus Christi ("Business Incentive Agreement"). 2. Term. The term of this Project Service Agreement runs concurrently with the term of the Business Incentive Agreement. Page 1 of 3 Business Service Agreement -Conexia 3. Services to be Provided by City. a. The City Manager or designee shall administer funding on behalf of the Type A Corporation. b. The City Manager or 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 Council. 5. Effective Date. The effective date of this Project Service Agreement is the same date as the Business Incentive 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 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 remainder of this page intentionally left blank. Page 2 of 3 Business Service Agreement -Conexia The City of Corpus Christi Corpus Christi Business & Job Development Corporation Ronald L. Olson City Manager Bart Braselton President Date: Date: Attest Rebecca Huerta City Secretary Business Service Agreement -Conexia Page 3 of 3 AGENDA MEMORANDUM Future Item for the City Council Meeting of October 14, 2014 Action Item for the City Council Meeting of October 21, 2014 DATE: TO: FROM: September 30, 2014 Ronald L. Olson, City Manager Christela Morales, Procurement Manager christelam(a�cctexas.com 361-826-3169 Andy Leal, Jr, Director of Street Operations andyl©cctexas.com (361) 857-1957 Supply Agreement(s) for the purchase of Traffic Sign Blanks, Sheeting/Roll Goods and Traffic Sign Posts/Anchors CAPTION: Motion approving supply agreement(s) with the following companies in the following amounts for traffic sign blanks, sheeting/roll goods, and traffic sign posts/anchors in accordance with Bid Invitation No. BI -0240-14, based on lowest responsible bidder, for an estimated annual expenditure of $201,523.65. The terms of the agreements shall be for twelve (12) months with options to extend for up to two (2) additional twelve-month periods, subject to the approval of the suppliers and the City Manager or designee. Funds have been budgeted by Streets Department in FY 2014- 2015. Custom Products Corp. Jackson, Mississippi Group I $42,114.00 Vulcan Signs Foley, Alabama Group II $38,530.75 3M Company St. Paul, Minnesota Group III $53,110.40 Total: $201,523.65 Centerline Supply LLC San Antonio, Texas Group IV $67,768.50 PURPOSE: These supply agreement(s) will be utilized by the traffic sign manufacturing and installation program. BACKGROUND AND FINDINGS: All extensions to the previous supply agreements have been exercised, thus requiring the City to issue a new Bid Invitation. Specifications and estimated quantities were developed in conjunction with Traffic Engineering. ALTERNATIVES: Not applicable. OTHER CONSIDERATIONS: Not applicable. CONFORMITY TO CITY POLICY: This purchase conforms to the City's purchasing policies and procedures and State statutes regulating procurement. EMERGENCY / NON -EMERGENCY: Non -emergency. DEPARTMENTAL CLEARANCES: Streets Department FINANCIAL IMPACT: x Operating ❑ Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget $201,523.65 $0 $201,523.65 Encumbered / Expended Amount $0 $0 $0 This item $201,523.65 $0 $201,523.65 BALANCE $0 $0 $0 Fund(s): Street Fund Comments: RECOMMENDATION: Staff recommends approval of the motion as presented. LIST OF SUPPORTING DOCUMENTS: Bid Tabulation CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON Group I Group II Group III GrouplV BID TABULATION BI -0240-14 TRAFFIC SIGNS ITEM DESCRIPTION QTY UNIT CENTERLINE San Antonio, UNIT PRICE SUPPLY LLC TX EXTENDED PRICE VULCAN SIGNS Foley, Alabama UNIT PRICE EXTENDED PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi UNIT PRICE EXTENDED PRICE US STANDARD SIGN Franklin Park, Illinois UNIT PRICE EXTENDED PRICE 1.0 TRAFFIC SIGN POSTS 1.1 Sign post 2 3/8" OD x .080 (wall thickness) Galvanized, Pre -drilled 600 EA $ 27.83 $ 16,698.00 $ 22.19 $ 13,314.00 NO BID NO BID $ 18.95 $ 11,370.00 NO BID NO BID 10' length A-15 hole pattern. 1.2 Sign post 2 3/8" OD x .080 (wall thickness) Powder Coat High 200 EA $ 56.40 $ 11,280.00 $ 43.47 $ 8,694.00 NO BID NO BID $ 41.05 $ 8,210.00 NO BID NO BID Visibility Yellow, Pre -drilled 12' length A-15 hole pattern. 1.3 Sign post 2 3/8" OD x .080 (wall thickness) Galvanized, Pre -drilled 300 EA $ 31.84 $ 9,552.00 $ 26.64 $ 7,992.00 NO BID NO BID $ 23.10 $ 6,930.00 NO BID NO BID 12' length A-15 hole pattern. 1.4.0 Sign post Anchor System (Poz- Lok-socket) with wedges. 1.4.1 27" Length 600 EA $ 9.61 $ 5,766.00 $ 14.50 $ 11,004.00 NO BID NO BID $ 12.47 $ 7,482.00 NO BID NO BID 1.4.2 33" Length 100 EA $ 11.35 $ 1,135.00 $ 18.34 $ 2,119.00 NO BID NO BID $ 14.05 $ 1,405.00 NO BID NO BID 1.4.3 36" Length 100 EA $ 12.33 $ 1,233.00 $ 21.19 $ 275.00 NO BID NO BID $ 15.10 $ 1,510.00 NO BID NO BID 1.5 Wedges Only for Anchor System 600 EA $ 3.77 $ 2,262.00 $ 2.75 $ 1,650.00 NO BID NO BID $ 3.47 $ 2,082.00 NO BID NO BID (Poz-Lok-socket). Page 1 of 9 ITEM CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON DESCRIPTION QTY UNIT CENTERLINE SUPPLY LLC San Antonio, TX EXTENDED UNIT PRICE PRICE BID TABULATION BI -0240-14 TRAFFIC SIGNS VULCAN SIGNS Foley, Alabama EXTENDED UNIT PRICE PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi EXTENDED UNIT PRICE PRICE US STANDARD SIGN Franklin Park, Illinois EXTENDED UNIT PRICE PRICE 1.6 1.7 2.0 2.1 2.2 2.3 2.4 2.5 Sign hardware caps (922 -X -fits 2 3/8" O.D. posts) for extruded blades. Sign Hardware (990-X-90 degree X Piece) for extruded blades. GROUP I TOTAL Manufacturer: Lead Time: Minimum Order: TRAFFIC SIGN BLANKS Aluminum Sign Blanks 12" x 24" Rectangle (vertical holes) 12" x 18" Rectangle (vertical holes) 18" x 18" Square (vertical holes) 18" x 24" Rectangle (horizontal holes) 18" x 48" Rectangle (no holes) 500 500 EA EA $ 4.42 $ 2,210.00 $ 4.42 $ 2,210.00 $ 52,346.00 Centerline Supply Stock 30 Days ARO As Required 3.50 3.35 Trinity 10-12 weeks $ 1,750.00 $ 1,675.00 $ 48,473.00 NO BID NO BID $ NO BID NO BID $ 3.10 3.15 $ 1,550.00 $ 1,575.00 $ 42,114.00 RM Components (posts) CPC (brackets 84 (posts) 14 (brakcets) Posts must be ordered in full bundles NO BID NO BID NO BID NO BID 50 EA $ 5.56 $ 278.00 $ 4.26 $ 213.00 NO BID NO BID $ 5.17 $ 258.50 $ 4.39 $ 219.50 200 EA $ 4.07 $ 814.00 $ 3.04 $ 608.00 NO BID NO BID $ 3.65 $ 730.00 $ 3.44 $ 688.00 200 EA $ 5.50 $ 1,100.00 $ 4.71 $ 942.00 NO BID NO BID $ 5.41 $ 1,082.00 $ 4.94 $ 988.00 100 EA $ 7.45 $ 745.00 $ 5.97 $ 597.00 NO BID NO BID $ 7.15 $ 715.00 $ 6.60 $ 660.00 50 EA $ 14.26 $ 713.00 $ 12.45 $ 622.50 NO BID NO BID $ 13.97 $ 698.45 $ 13.20 $ 660.00 Page 2 of 9 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON BID TABULATION BI -0240-14 TRAFFIC SIGNS ITEM DESCRIPTION QTY UNIT CENTERLINE San Antonio, UNIT PRICE SUPPLY LLC TX EXTENDED PRICE VULCAN SIGNS Foley, Alabama UNIT PRICE EXTENDED PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi UNIT PRICE EXTENDED PRICE US STANDARD SIGN Franklin Park, Illinois UNIT PRICE EXTENDED PRICE 2.6 18" x 60" Rectangle (no holes) 100 EA $ 21.44 $ 2,144.00 $ 19.31 $ 1,931.00 NO BID NO BID $ 17.49 $ 1,749.00 $ 16.51 $ 1,651.00 2.7 18" x 72" Rectangle (no holes) 100 EA $ 25.47 $ 2,547.00 $ 23.22 $ 2,322.00 NO BID NO BID $ 20.98 $ 2,098.00 $ 20.12 $ 2,012.00 2.8 24" x 24" Square (vertical holes) 100 EA $ 9.75 $ 975.00 $ 8.19 $ 819.00 NO BID NO BID $ 9.38 $ 938.00 $ 8.81 $ 881.00 2.9 24" x 30" Rectangle (horizontal holes) 200 EA $ 11.69 $ 2,338.00 $ 10.18 $ 2,036.00 NO BID NO BID $ 11.65 $ 2,330.00 $ 11.01 $ 2,202.00 2.10 24" x 36" Rectangle (horizontal holes) 100 EA $ 14.04 $ 1,404.00 $ 12.32 $ 1,232.00 NO BID NO BID $ 13.81 $ 1,381.00 $ 13.20 $ 1,320.00 2.11 24" x 48" Rectangle (horizontal holes) 100 EA $ 23.11 $ 2,311.00 $ 20.08 $ 2,008.00 NO BID NO BID $ 18.65 $ 1,865.00 $ 22.00 $ 2,200.00 2.12 24" x 60" Rectangle (no holes) 25 EA $ 28.46 $ 711.50 $ 25.07 $ 626.75 NO BID NO BID $ 23.22 $ 580.50 $ 28.52 $ 713.00 2.13 30" x 30" Diamond (vertical holes) 50 EA $ 15.45 $ 772.50 $ 12.65 $ 632.50 NO BID NO BID $ 14.57 $ 728.50 $ 17.20 $ 860.00 2.14 36" x 36" Rectangle (vertical holes) 50 EA $ 26.78 $ 1,339.00 $ 23.24 $ 1,162.00 NO BID NO BID $ 20.30 $ 1,015.00 $ 24.76 $ 1,238.00 Extruded Aluminum Sign Blanks 2.15 9" x 24" 900 EA $ 6.62 $ 5,958.00 $ 4.61 $ 4,149.00 NO BID NO BID $ 6.21 $ 5,589.00 $ 5.67 $ 6,390.00 2.25 9" x 30" 900 EA $ 7.85 $ 7,065.00 $ 5.75 $ 5,175.00 NO BID NO BID $ 7.78 $ 7,002.00 $ 7.10 $ 7,668.00 2.26 9" x 36" 900 EA $ 9.93 $ 8,937.00 $ 6.87 $ 6,183.00 NO BID NO BID $ 9.33 $ 8,397.00 $ 8.52 $ 8,946.00 2.27 9" x 42" 900 EA $ 11.28 $ 10,152.00 $ 8.08 $ 7,272.00 NO BID NO BID $ 10.94 $ 9,846.00 $ 9.94 $ 8,946.00 GROUP 11 TOTAL $ 50,304.00 $ 38,530.75 $ 47,002.95 $ 48,242.50 Manufacturer: Centerline Supply Stock Vulcan CPC US Standard Sign Lead Time: 30 Days ARO 30 Days ARO 21-30 24 Days Minimum Order: As Required N/A $1,000.00 $2,500.00 Page 3 of 9 ITEM CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON DESCRIPTION QTY UNIT CENTERLINE SUPPLY LLC San Antonio, TX EXTENDED UNIT PRICE PRICE BID TABULATION BI -0240-14 TRAFFIC SIGNS VULCAN SIGNS Foley, Alabama EXTENDED UNIT PRICE PRICE 3M COMPANY St. Paul, Minnesota UNIT EXTENDED PRICE PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi EXTENDED UNIT PRICE PRICE US STANDARD SIGN Franklin Park, Illinois EXTENDED UNIT PRICE PRICE 3 3.0 3.1 3.2 3.3 3.4 3.5 3.6 TRAFFIC SIGN SHEETING - ROLL GOODS White, high intensity grade reflective sheeting, pressure sensitive, 24" x 50 yds. White, high intensity grade reflective sheeting, pressure sensitive 30" x 50 yds. White, high intensity grade reflective sheeting, pressure sensitive 36" x 50 yds. White, super engineer grade reflective sheeting, pressure sensitive, 36" x 50 yds. White, super engineer grade reflective sheeting, pressure sensitive, 5/8" x 50 yds. White, super engineer grade reflective sheeting, pressure sensitive, 3/4" x 50 yds. White, super engineer grade reflective sheeting, pressure sensitive, 1/2" x 50 yds. 5 5 5 15 5 10 10 ROLLS $ 436.74 ROLLS $ 545.92 ROLLS $ 655.11 ROLLS $ 545.71 $ 2,183.70 $ 2,729.60 $ 3,275.55 $ 8,185.65 ROLLS $ 8.72 $ ROLLS 10.35 $ ROLLS $ 7.04 $ $ 366.00 $ 1,830.00 $ 354.00 $ 1,770.00 $ 375.05 $ 1,875.25 NO BID NO BID $ 457.50 $ 2,287.50 $ 442.50 $ 2,212.50 $ 472.50 $ 2,362.50 NO BID NO BID $ 549.00 $ 2,745.00 $ 531.00 $ 2,655.00 $ 744.00 $ 3,720.00 NO BID NO BID $ 463.50 $ 6,952.50 $ 531.00 $ 7,965.00 $ 445.50 $ 6,682.50 NO BID NO BID 43.60 $ 8.05 $ 40.25 $ 9.22 $ 46.10 $ 9.90 $ 49.50 NO BID NO BID 103.50 $ 9.66 $ 96.60 $ 11.06 $ 110.60 $ 12.38 $ 123.80 NO BID NO BID 70.40 $ 6.44 $ 64.40 $ 737.00 $ 7,370.00 $ 7.92 $ 79.20 NO BID NO BID Page 4 of 9 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON BID TABULATION BI -0240-14 TRAFFIC SIGNS ITEM DESCRIPTION QTY UNIT CENTERLINE San Antonio, UNIT PRICE SUPPLY LLC TX EXTENDED PRICE VULCAN SIGNS Foley, Alabama UNIT PRICE EXTENDED PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi UNIT PRICE EXTENDED PRICE US STANDARD SIGN Franklin Park, Illinois UNIT PRICE EXTENDED PRICE 3.7 White, super engineer grade reflective sheeting, pressure sensitive, 7/8" x 50 yds. 10 ROLLS $ 12.16 $ 121.60 $ 11.26 $ 112.60 $ 12.91 $ 129.10 $ 13.86 $ 138.60 NO BID NO BID 3.8 Orange, super engineer grade reflective sheeting, pressure sensitive, 30" x 50 yds. 2 ROLLS $ 655.11 $ 1,310.22 $ 549.00 $ 1,098.00 $ 531.00 $ 1,062.00 $ 616.07 $ 1,232.14 NO BID NO BID 3.9 Orange/white, Barricade high intensity grade reflective sheeting, pressure sensitive, 8" x 50 yds. 5 ROLLS $ 176.11 $ 880.55 $ 123.00 $ 615.00 $ 125.00 $ 625.00 $ 130.05 $ 650.25 NO BID NO BID (Left) 3.10 Orange/white, Barricade high intensity grade reflective sheeting, pressure sensitive, 8" x 50 yds. 5 ROLLS $ 176.11 $ 880.55 $ 123.00 $ 615.00 $ 125.00 $ 625.00 $ 130.05 $ 650.25 NO BID NO BID (Right) 3.11 Yellow, high intensity grade reflective sheeting, pressure sensitive, 30" x 50 yds. 2 ROLLS $ 545.92 $ 1,091.84 $ 457.00 $ 914.00 $ 442.50 $ 885.00 $ 513.39 $ 1,026.78 NO BID NO BID 3.12 Yellow, high intensity grade reflective sheeting, pressure sensitive, 36" x 50 yds. 1 ROLLS $ 655.11 $ 655.11 $ 549.00 $ 549.00 $ 531.00 $ 531.00 $ 578.07 $ 578.07 NO BID NO BID 3.13 Green, high intensity grade reflective sheeting, pressure sensitive, 10" x 50 yds. 40 ROLLS $ 181.97 $ 7,278.80 $ 463.56 $ 18,542.40 $ 147.50 $ 5,900.00 $ 189.00 $ 7,560.00 NO BID NO BID 3.14 Green, high intensity grade reflective sheeting, pressure sensitive, 18" x 50 yds. 3 ROLLS $ 327.55 $ 982.65 $ 274.50 $ 823.50 $ 265.50 $ 796.50 $ 279.00 $ 837.00 NO BID NO BID Page 5 of 9 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON BID TABULATION BI -0240-14 TRAFFIC SIGNS ITEM DESCRIPTION QTY UNIT CENTERLINE San Antonio, UNIT PRICE SUPPLY LLC TX EXTENDED PRICE VULCAN SIGNS Foley, Alabama UNIT PRICE EXTENDED PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi UNIT PRICE EXTENDED PRICE US STANDARD SIGN Franklin Park, Illinois UNIT PRICE EXTENDED PRICE 3.15 Green, high intensity grade reflective sheeting, pressure sensitive, 24" x 50 yds. 3 ROLLS $ 436.74 $ 1,310.22 $ 366.00 $ 1,098.00 $ 354.00 $ 1,062.00 $ 375.06 $ 1,125.18 NO BID NO BID 3.16 Green, high intensity grade reflective sheeting, pressure sensitive, 30" x 50 yds. 2 ROLLS $ 545.92 $ 1,091.84 $ 457.50 $ 915.00 $ 442.50 $ 885.00 $ 466.00 $ 932.00 NO BID NO BID 3.17 Black, non -reflective film, pressure sensitive, 1/2" x 50 yds. 5 ROLLS $ 7.34 $ 36.70 $ 7.96 $ 39.80 $ 4.69 $ 23.45 $ 8.66 $ 43.30 NO BID NO BID 3.18 Black, non -reflective film, pressure sensitive, 5/8" x 50 yds. 10 ROLLS $ 9.17 $ 91.70 $ 9.95 $ 99.50 $ 5.86 $ 58.60 $ 10.83 $ 108.30 NO BID NO BID 3.19 Black, non -reflective film, pressure sensitive, 3/4" x 50 yds. 10 ROLLS $ 10.92 $ 109.20 $ 11.93 $ 119.30 $ 7.03 $ 70.30 $ 12.99 $ 129.90 NO BID NO BID 3.20 Black, non -reflective film pressure sensitive, 7/8" x 50 yds. 5 ROLLS $ 12.85 $ 64.25 $ 13.92 $ 69.60 $ 8.20 $ 41.00 $ 15.16 $ 75.80 NO BID NO BID 3.21 Black, non -reflective film, pressure sensitive, 30" x 50 yds. 4 ROLLS $ 421.57 $ 1,686.28 $ 270.00 $ 1,080.00 $ 281.25 $ 1,125.00 $ 309.80 $ 1,239.20 NO BID NO BID 3.22 SCPM - 3 application tape, 4" x 4 ROLLS $ 17.90 $ 71.60 $ 15.780 $ 63.12 $ 12.00 $ 48.00 $ 12.53 $ 50.12 NO BID NO BID 50 yds. 3.23 SCPM - 3 application tape, 6" x 50 yds. 4 ROLLS $ 26.76 $ 107.04 $ 22.800 $ 91.20 $ 18.00 $ 72.00 $ 18.68 $ 74.72 NO BID NO BID 3.24 SCPM - 3 application tape, 8" x 4 ROLLS $ 35.67 $ 142.68 $ 29.830 $ 119.32 $ 24.00 $ 96.00 $ 24.43 $ 97.72 NO BID NO BID 50 yds. Page 6 of 9 ITEM CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON DESCRIPTION QTY UNIT CENTERLINE SUPPLY LLC San Antonio, TX EXTENDED UNIT PRICE PRICE BID TABULATION BI -0240-14 TRAFFIC SIGNS VULCAN SIGNS Foley, Alabama EXTENDED UNIT PRICE PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi EXTENDED UNIT PRICE PRICE US STANDARD SIGN Franklin Park, Illinois EXTENDED UNIT PRICE PRICE 3.25 3.26 3.27 3.28 4.0 4.1 4.2 4.3 SPCM - 3 application tape 10" x 50 yds. F -Cal Premium Grade Film 24" x 50 yds. F -Cal Premium Grade Film 30" x 50 yds. F -Cal Premium Grade Film 36" x 50 yds. GROUP 111 TOTAL Manufacturer: Lead Time: Minimum Order: TOTAL AWARD Traffic Sign Posts Sign post 10 BWG Tubing (2.875" OD) 0.134 (wall thickness) 10' length. Sign post 10 BWG Tubing (2.875" OD) 0.134 (wall thickness) 12' length. Sign post Sch. 80 Pipe (2.875" OD) 0.276 (wall thickness) 10' length. 8 15 15 15 ROLLS ROLLS ROLLS ROLLS $ 43.90 $ 480.48 $ 600.60 $ 720.72 Avery 30 Days ARO As Required $ 351.20 $ 7,207.20 $ 9,009.00 $ 10,810.80 $ 61,883.03 $ 35.080 $ 280.64 $ 570.00 $ 8,550.00 $ 712.50 $ 10,687.50 $ 855.00 $ 12,825.00 $ 60,498.73 3M/ NCI/ ATSM 30 Days ARO $ 30.00 $ 495.00 $ 618.75 $ 742.50 $ 240.00 $ 7,425.00 $ 9,281.25 $ 11,137.50 $ 53,110.40 3M COMPNAY 20-30 DAYS ARO NONE 150 EA $ 41.04 $ 6,156.00 $ 46.19 $ 6,928.50 NO BID NO BID 150 EA $ 47.94 $ 7,191.00 $ 54.48 $ 8,172.00 NO BID NO BID 100 EA $ 81.00 $ 8,100.00 $ 118.02 $ 11,802.00 NO BID NO BID $ 30.18 $ 530.00 $ 725.07 $ 845.82 3M 21 Days NO BID NO BID NO BID $ 241.44 $ 7,950.00 $ 10,876.05 $ 12,687.30 $ 63,196.87 NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID NO BID Page 7 of 9 CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON BID TABULATION BI -0240-14 TRAFFIC SIGNS ITEM DESCRIPTION QTY UNIT CENTERLINE San Antonio, UNIT PRICE SUPPLY LLC TX EXTENDED PRICE VULCAN SIGNS Foley, Alabama UNIT PRICE EXTENDED PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi UNIT PRICE EXTENDED PRICE US STANDARD SIGN Franklin Park, Illinois UNIT PRICE EXTENDED PRICE 4.4 Sign post Sch. 80 Pipe (2.875" 100 EA $ 84.00 $ 8,400.00 $ 137.99 $ 13,799.00 NO BID NO BID NO BID NO BID NO BID NO BID OD) 0.276 (wall thickness) 12' length. 4.5 Galvanized Triangular Slipbase 100 EA $ 84.20 $ 8,420.00 $ 145.17 $ 14,517.00 NO BID NO BID NO BID NO BID NO BID NO BID Assembly consists of stub, collar, nuts & bolts, bolt keeper plate triangle breakaway 4.6 U -Sign Supports for 2 7/8" OD post 50 EA $ 77.50 $ 3,875.00 $ 109.22 $ 5,461.00 NO BID NO BID NO BID NO BID NO BID NO BID 4.7 T -Sign Supports for 2 7/8" OD post 50 EA $ 37.70 $ 1,885.00 $ 37.52 $ 1,876.00 NO BID NO BID NO BID NO BID NO BID NO BID 4.8 U -Sign Support Extension Post for 100 EA $ 15.44 $ 1,544.00 $ 18.83 $ 1,883.00 NO BID NO BID NO BID NO BID NO BID NO BID 2 7/8" OD post 4.9 U -Bolt Sign Clamps to fit 2 3/8" 600 EA $ 2.35 $ 1,410.00 $ 3.74 $ 2,244.00 NO BID NO BID NO BID NO BID NO BID NO BID OD post 4.10 U -Bolt Sign Clamps to fit 2 7/8" 600 EA $ 2.35 $ 1,410.00 $ 3.88 $ 2,328.00 NO BID NO BID NO BID NO BID NO BID NO BID OD post 4.11 12" Street Name Blade Cross 400 EA $ 11.40 $ 4,560.00 $ 7.85 $ 3,140.00 NO BID NO BID $ 9.50 $ 3,800.00 NO BID NO BID Bracket for Extruded Blades 4.12 Round Post Cap for 2 3/8" OD 400 EA $ 11.40 $ 4,560.00 $ 7.85 $ 3,140.00 NO BID NO BID $ 9.50 $ 3,800.00 NO BID NO BID Post 12" Blade holder for Extruded Blades 4.13 Round Post Cap for 2 7/8" OD 400 EA $ 14.40 $ 5,760.00 $ 10.25 $ 4,100.00 NO BID NO BID NO BID NO BID NO BID NO BID Post 12" Blade holder for Extruded Blades 4.14 Surface Mount Triangle Slipbase 50 EA $ 89.95 $ 4,497.50 $ 113.27 $ 5,663.50 NO BID NO BID NO BID NO BID NO BID NO BID Assembly Page 8 of 9 ITEM CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER: LATIFAH JACKSON DESCRIPTION QTY UNIT CENTERLINE SUPPLY LLC San Antonio, TX EXTENDED UNIT PRICE PRICE BID TABULATION BI -0240-14 TRAFFIC SIGNS VULCAN SIGNS Foley, Alabama EXTENDED UNIT PRICE PRICE 3M COMPANY St. Paul, Minnesota UNIT PRICE EXTENDED PRICE CUSTOM PRODUCTS CORPORATION Jackson, Mississippi EXTENDED UNIT PRICE PRICE US STANDARD SIGN Franklin Park, Illinois EXTENDED UNIT PRICE PRICE GROUP IV TOTAL Manufacturer: Lead Time: Minimum Order: TOTAL AWARD Centerline 30 Days ARO As Reuired $ 67,768.50 Trinity 10-12 weeks $ 172,351.69 $ 7,600.00 Page 9 of 9 AGENDA MEMORANDUM Future Item for the City Council Meeting of October 14, 2014 Action Item for the City Council Meeting of October 21, 2014 DATE: TO: September 18, 2014 Ronald L. Olson, City Manager FROM: Emily Martinez (361) 882-7448 emartinez@ccredc.com Agreement for temporary tax abatement for the development located in the 900 block of North Water Street CAPTION: Approving a resolution authorizing the execution of an agreement with Prosperity Bank providing for temporary property tax abatement PURPOSE: Granting a tax abatement to Prosperity Bank for a term of up to eight years. BACKGROUND AND FINDINGS: Prosperity Bank submitted an application for incentives to the City of Corpus Christi requesting tax abatement for the building located in the 900 block of North Water Street. The development is located within the Council designated downtown catalyst area. In accordance with the City's Tax Abatement Guidelines and Criteria, Prosperity Bank is seeking tax abatement as per section 2 (i)(3) of the Guidelines: The level of any New Facility, Expansion, or Modernization that is located within a Catalyst Area or that is a Locally -Owned Facility is increased by one level above the standards set forth in Section 2(i)(1) and (2) above, with a minimum level of 3 for any the project. Further, if a Facility qualifies under both the capital investment qualification criteria and the new jobs and salary criteria, the Facility will be increased by one level above the highest criteria level achieved. Level 3 provides a maximum number of 8 years tax abatement, including up to 2 years during construction. The increment value of the City's ad -valorem tax will be abated based on the following schedule: • Years 1-5 100% (not to exceed 2 years for construction) • Year 6 75% • Year 7 50% • Year 8 25% The building to be constructed will become the bank's office and drive through. Improvements are estimated to be approximately $2,686,000 all of which is eligible for tax abatement. The property is currently appraised at $165,733. This project will retain fifteen (15) permanent jobs. ALTERNATIVES: There are no other incentives available to a project this size. It is below the investment limits for a County or College District abatement. OTHER CONSIDERATIONS: Not applicable CONFORMITY TO CITY POLICY: This tax abatement is eligible for a Level 3 treatment. It is in a catalyst area as defined by the City Council. EMERGENCY / NON -EMERGENCY: NON -EMERGENCY FINANCIAL IMPACT: ❑ Operating X Revenue ❑ Capital ❑ Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item 55,021 55,021 BALANCE 55,021 55,021 Fund: General Comments: The amount of taxes for ten years for the unimproved property would be $9,700. With the tax abatement, the amount of property tax collected over the base amount of $165,733, will be $55,021 in new tax revenues. RECOMMENDATION: Staff recommends approval to grant a temporary tax abatement to Prosperity Bank, the owner of taxable property located of in the 900 block of North Water Street in accordance with the City's Tax Abatement Guidelines and Criteria. LIST OF SUPPORTING DOCUMENTS: Resolution — Prosperity Bank Tax Abatement Agreement Page 1 of 2 Resolution Authorizing the execution of an agreement with Prosperity Bank 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 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 Prosperity Bank for the construction of a facility 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 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 of the City of Corpus Christi; 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 Prosperity Bank 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 Prosperity Bank, attached as Exhibit A, is approved, and the City Manager is authorized to execute the agreement. This resolution takes effect upon City Council approval on this the day of , 2014. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta City Secretary RESOLUTION - Tax Abatement Prosperity Bank Nelda Martinez Mayor Corpus Christi, Texas of , 2014 The above resolution was passed by the following vote: Nelda Martinez Kelley Allen Rudy Garza Jr. Priscilla G. Leal David Loeb Chad Magill Colleen McIntyre Lillian Riojas Mark Scott RESOLUTION - Tax Abatement Prosperity Bank Page2of2 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or their duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: October 21, 2014 Agenda Item: Approving a resolution authorizing the execution of an agreement with Prosperity Bank providing for temporary property tax abatement Amount Required: $ NA Fund Name Account No. Fund No. Org. No. Project No. Amount $ Total $ Certification Not Required Director of Financial Services Date: TAX ABATEMENT AGREEMENT This Tax Abatement Agreement ("Agreement") is made and entered into by and between the City of Corpus Christi, Texas ("City") and Prosperity Bank, a Texas State Banking Association ("Owner" or "Prosperity"), the owner of taxable property in the City of Corpus Christi, Texas, located on 901 North Water Street, 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. "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. 3. "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). (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. Page 1 of 14 (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. 4."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. 5. "`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. 6. "Improvements" means the buildings, portions of buildings, and other improvements, including fixed machinery and equipment, used for commercial or industrial purposes on the Property. 7. "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 directed by a political subdivision of the State of Texas; unless any of the above types of property are specifically authorized by the City. 8. 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, ail definitions in the guidelines and criteria are applicable to this Agreement. 111. 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. Page 2 of 14 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. 0540-0024-0010 (191783) Land $533,162 Improvements $165,733 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: $2,686,000 D. The parties agree that, for purposes of this Agreement, the Base Year Value shall be as follows: Base Year Value: $165,733 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 2022 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 December 31, and in no event may the Abatement extend beyond December 31 of the 2022 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. Page 3 of 14 3. The value of Ineligible Property is fully taxable. VI. AMOUNT OF ABATEMENT A. The Abatement provided by this Agreement is based upon a Service Facility located in the Renewal Community, Owner represents and warrants that this project will retain fifteen (15) permanent or full-time operating or contract employee 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% Year 4 75% Year 5 50% Year 6 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 states to the City that the minimum investment comprising permanent Improvements upon completion of the Construction Phase is: $2,686,000 ("Minimum Investment"), of which $2,686,000 is eligible for tax abatement. D. The formula for calculating the additional tax is outlined as follows: (Tax Ratej x f(85% of Minimum Investment - Actual Minimum Investment ) x (100% - Abatement %)j = Additional Tax. Page 4 of 14 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 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 Ag reement. B. Owner represents and warrants that this project will retain fifteen (15) 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 fifteen (15) 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 fifteen (15) 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 Term 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. Page 5 of 14 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 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 Investment. Should the Company not reach the investment as stated in Section 6. C., the difference between the tax abated on the minimum investment and the tax that should have been abated based upon the actual investment as determined by the City must be paid within 60 days of notification to the Owner of the determination. Penalty and interest do 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 accrue 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. 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 Page 6 of 14 this Agreement between the City and Owner is fully performed by Owner, or until all taxes, whether assessed or recaptured, are paid in full, as applicable. 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: (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. Page 7 of 14 3. 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. Submit to the Nueces County Appraisal District an Application for Property Tax Abatement Exemption (Texas Comptroller of Public Accounts Property Tax Form 50- 116). A copy must be forwarded to the City. D. Utilization of Local Contractors and Suppliers. Owner agrees to exercise reasonable efforts in utilizing local contractors and suppliers in the construction of the Project, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency in the normal course of business, with a goal of 50% of the total dollar amount of all construction contracts and supply agreements. 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. Owner agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Owner to comply with the Local Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall determine if Owner is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. E. Utilization of Disadvantaged Business Enterprises ("DBE"). Owner agrees to exercise reasonable efforts in utilizing contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically -underutilized business enterprises. In order to qualify as a business enterprise under this provision, the firm must be certified by the City, the Regional Transportation Authority or another governmental entity in the jurisdiction of the home office of the business as complying with state or federal standards for qualification as such an enterprise. Owner agrees to a goal of 30% of the total dollar amount of all construction contracts and supply agreements being paid to disadvantaged business enterprises, with a priority made for disadvantaged business enterprises which are local. Owner agrees, during the construction of the Project and for four years after Completion, to maintain written records documenting the efforts of Owner to comply with the DBE Requirement, and to provide an annual report to the City Manager or designee, from which the City Manager or designee shall Page 8 of 14 determine if Owner is in compliance with this requirement. Failure to substantially comply with this requirement, in the sole determination of the City Manager or designee, shall be a default hereunder. For the purposes of this section, the term "local" as used to describe contractors and suppliers that are determined to be disadvantaged business enterprises, including minority business enterprises women -owned business enterprises and historically -underutilized business enterprises includes firms, businesses, and persons who reside in or maintain an office within a 50 mile radius of Nueces County. F. Living Wage Requirement. In order to count as a permanent full-time job under this tax abatement program, the job should provide a "living wage" for the employee. The target living wage under this abatement program is that annual amount equal or greater than poverty level for a family of three, established by the U.S. Department of Health and Human Services Poverty Guidelines, divided by 2,080 hours per year for that year. G. Health Insurance. To qualify for this incentive, an employer shall certify that it has offered a health insurance program for its employees during the term of the Agreement. H. Undocumented Workers. Prosperity does not and agrees that it will not knowingly employ an undocumented worker. If, after receiving payments under this Agreement, Prosperity is convicted of a violation under §U.S.C. Section 1324a(f), Prosperity shall repay the payments at the rate and according to the terms as specified by City Ordinance, as amended, not #ater than the 120th day after the date Prosperity has been notified of the violation. 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 are 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. Page 9 of 14 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, al! notices are delivered to the following addresses: To the City: To the Owner: CITY OF CORPUS CHRISTI 1201 Leopard Street P. 0. Box 9277 Corpus Christi, Texas 78469 Attn: City Manager Prosperity Bank 500 North Water Street Suite 100 Corpus Christi, Texas 78401 Attn: David Weatherston, President C. Either party may designate a different address by giving the other party ten days written notice. This Section XI., Notices, survives expiration or termination of this Agreement. XII. CONFIDENTIALITY A. As a result of its relationship with Prosperity, City may learn or have access to various trade secrets, confidential and proprietary methods, techniques, processes, business plans, names of applicants, borrowers, customers (whether current, former, or prospective customers), or employees, customer account and other non-public personal information, procedures, business operations, credit policies and other information that is confidential and proprietary to Prosperity (collectively, the "Confidential Information"). B. City further agrees that it will use all reasonable means to safeguard the Confidential Information and return all Confidential Information in its possession to Prosperity upon Prosperity's written request and in all cases upon the termination or cancellation of this Agreement, subject however, to any applicable legal requirements concerning the maintenance of records or compliance with the Texas Public Information Act. Prosperity agrees that the City is a governmental entity bound by the Texas Public Information Act. C. This Section XII., Confidentiality, survives termination or expiration of this Agreement. Page 10 of 14 This Agreement has been executed by the parties in multiple originals or counterparts, each having full force and effect. Executed this day of , 2014. ATTEST: CITY OF CORPUS CHRISTI, TEXAS By: By: Rebecca Muerte Ronald L. Olson City Secretary City Manager OWNER: Prosperity B David Weatherston President Prosperity Bank ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF NUECES § This instrument was acknowledged before me on David Weatherston, President, Prosperity Bank, a the institution. SHARON 3 KNOPP Notary Public, State of Texas My Commission Expires APRIL 1T, 201B KNOW ALL BY THESE PRESENTS , 2014, by Te s stat financial institution, on behalf of NOTARY PUBLIC, State of Texas Page 11 of 14 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 Tabor** (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 terra does not include engineering services in connection with the project design. 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 12 of 14 Exhibit A Project Plan Prosperity Bank already has a motor facility located on this site. They plan to demolish the existing structure and erect a two story building for their bank with a motor banking component. Page 13 of 14 EXHIBIT B Property Description The property is located at 901 North Water Street, Corpus Christi, Texas. More accurately described as Beach Frac Lot 1 and all of lots 2 through 6 less west 4 feet of lots 1 and 2 Block 24. The 4 feet is City property. Page 14 of 14 AGENDA MEMORANDUM Future Item for the City Council Meeting of October 14, 2014 Action Item for City Council Meeting October 28, 2014 DATE: 8/26/2014 TO: Ronald L. Olson, City Manager THRU: Susan K. Thorpe, Assistant City Manger SThorpe(a�cctexas.com 361-826-3898 Eddie Ortega, HCD Director EddieO c(�cctexas.com 361-826-3234 FROM: Rudy Bentancourt, CD Administrator RudyB@cctexas.com 361-826-3021 Approve the FY2014-2015 HOME Program set-aside funds. CAPTION: Motion to approve the FY2014-2015 HOME Program set-aside funds. PURPOSE: Purpose of the motion is for City Council to approve the FY2014-2015 HOME Program set-aside funds for two projects which have received Texas Department of Housing and Community Affairs (TDHCA) Housing Tax Credits in the amount of $1,818,000. BACKGROUND AND FINDINGS: On February 18, 2014, the City Council passed a Resolution in support of the proposed affordable housing projects known as Lexington Manor Apartments and Riverstone Apartments who were both requesting local support from the U.S. Department of Housing and Urban Developments (HUD) HOME Program funds. On June 17, 2014, City Council approved to set-aside HOME FY2014 funds for affordable housing projects which were also applying for TDHCA Housing Tax Credits. The TDHCA Board of Directors met on July 31, 2014 for a discussion on the proposed Housing Tax Credit projects. TDHCA awarded Housing Tax Credits to the Lexington Manor Apartments and the Riverstone Apartments projects. Due to the reimbursement to HUD for the LULAC Oasis at the Park project which was determined to be in non- compliance, the City requested a $150,000 reduction of the $974,920 of HOME entitlement funds. With the entitlement reduction, the City will receive $824,920 in FY2014 HOME funds. The adopted request of HOME Administration of $97,492 will change to the new recommendation of $82,492 which is the 10% allowed for administrative costs. The City will be receiving $320,000 in program income funds due to a loan repayment as well as $250,000 of the funds paid to HUD for the LULAC project in which the City will be able to keep to further affordable housing. Along with $600,000 from prior years of recaptured and reprogrammed funds, the HOME Program is expected to have $1,994,920 of total funds available for the FY2014 program year. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council approval is required. EMERGENCY / NON -EMERGENCY: This item is non -emergency DEPARTMENTAL CLEARANCES: Legal Finance — Federal Grants and Office of Management and Budget FINANCIAL IMPACT: Not applicable Fiscal Year: 2014-2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: None RECOMMENDATION: HCD requests the passing of the motion. LIST OF SUPPORTING DOCUMENTS: Attachment D FY2014 HOME ATTACHMENT "D" RECOMMENDED FY2014 HOME PROGRAM FY2014 HOME Allocation Program Income HUD Reusable Funds (LULAC Repayment) Reprogrammed Funds TOTAL FUNDS AVAILABLE FOR FY2014 HOME PROGRAM $824,920 $320,000 $250,000 $600,000 $1,994,920 # PROJECT & DESCRIPTION Request Staff Recomm City Council Adopt 1 HOME Administration/Technical Assistance Administrative funds for staffing, planning, oversight, coordination, staff supervision, monitoring and evaluation, contracting, recordkeeping/reporting and overall program management. Technical assistance will be provided to enhance the capacity of CHDO's, non -profits, owners/investors of rental property and other organizations that may participate in the program. $97,492 $82,492 2 Homebuyer Assistance Program ($5,000) Provide deferred forgivable loans to low income homebuyers to assist them with down payment and closing costs for the purchase of a home. $50,000 $50,000 $50,000 INTERDEPARTMENTAL TOTAL $147,492 $132,492 $50,000 NON- PROFIT ORGANIZATIONS - Funding determintation will be made no later than October 1, 2014 1 Riverstone Apartments Riverstone Apartments is a proposed affordable housing multi -family community conssisting of approximately 60 units to serve low-income families, seniors, and individuals. The development will be financed primarily through the Texas Department of Housing and Community Affairs' Low Income Housing Tax Credits. Riverstone Apartments will propose to serve residents at 30%, 50%, and 60% area median income. Total project cost: $9,485,836 $800,000 $900,000 2 TG 110, Inc. - Lexington Manor Apartments (CHDO) TG 110, Inc. is proposing the demolition and reconstruction of the Lexington Manor Apartments. This complex is comprised of 153 units (52 as Section 8) serving low-income families, seniors, and individuals. The development will be financed primarily through The Texas Department of Housing and Community Affairs' Low Income Housing Tax Credits, private debt, and HOME funds through the City of Corpus Christi. Lexington Manor will serve residents at 30%, 50%, and 60% area median income. Total project cost: $23,447,242 $918,000 $918,000 3 Nueces ounty Community Action Agency Conduct an affordable housing market study in Corpus Christi to identify the support of development in affordable housing projects which will include low- income households. $25,000 $0 CHDO Total $918,000 $918,000 Subrecipients/Other Entity Total $925,000 $900,000 HCD Projects Total $147,492 $132,492 * Total Set -Aside to be determined no later than October 1, 2014 $1,843,000 $1,950,492 6 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: October 28, 2014 Agenda Item: Motion to approve the FY2014-2015 HOME Program set-aside funds. Amount Required: $1,900,492 Fund Name Account No. Fund No. Org. No. Project No. Amount HOME Investment Partnerships Program - 9045 48004 - $1,900,492 Total $1,900,492 ❑ Certification Not Required Director of Financial Services Date: AGENDA MEMORANDUM Future Item for the City Council Meeting of October 14, 2014 Action Item for the City Council Meeting of October 28, 2014 DATE: August 26, 2014 TO: Ronald L. Olson, City Manager THRU: Susan Thorpe, Assistant City Manager SThorpe@cctexas.com 361.826.3898 Eddie Ortega, Director EddieO@cctexas.com 361.826.3224 FROM: Rudy Bentancourt, CD Administrator RudyB@cctexas.com 361.826.3021 Board of Director's Meeting of the Corpus Christi Community Improvement Corporation CAPTION: Board of Directors Meeting of the Corpus Christi Community Improvement Corporation (CCCIC) PURPOSE: To provide a loan commitment for the Lexington Manor and the Riverstone projects from FY2014 HOME funding. BACKGROUND AND FINDINGS: On February 18, 2014 the City Council passed a Resolution in support of the proposed affordable housing projects known as Lexington Manor Apartments and Riverstone Apartments. On June 17, 2014, the City Council approved to set aside HOME FY2014 funding requested for Lexington Manor Apartments in the amount of $918,000 and Riverstone Apartments in the amount of $900,000. On July 31, 2014, the Texas Department of Housing and Community Affairs approved to provide the Lexington Manor and the Riverstone projects with Housing Tax Credits (HTC's). The motion will be to approve the loan commitment terms for the projects subject to the execution of the funding agreement. In order to secure the HTC's, the project must receive a firm commitment from the local government of the project location. A firm commitment is defined as an executed agreement. Lexington Manor Apartments, located at 5201 Kostoryz, Corpus Christi, TX 78415, will involve the demolition and reconstruction of 153 apartments (52 -Section 8) serving senior citizens, low- income families, and individuals. The development will be financed primarily through Low Income Housing Tax Credits, private debt, and HOME funds through the City of Corpus Christi at 3% interest for a 40 -year term with payments amortized over 40 years and paid from available net cash flow. Riverstone Apartments, located at 3501 Airline Rd., Corpus Christi, TX 78414, will involve the new construction of 60 apartments serving senior citizens, low-income families, and individuals. The development will be financed primarily through Low Income Housing Tax Credits, private debt, and HOME funds through the City of Corpus Christi at 1°/0 interest for a 40 -year term with payments amortized over 40 years and paid from available net cash flow. Discussion, and possible action, will involve the approval of the loan commitments made from FY2014 funds provided through the U. S. Department of Housing and Urban Development's HOME Program. ALTERNATIVES: "Not Applicable" OTHER CONSIDERATIONS: "Not Applicable" CONFORMITY TO CITY POLICY: The action conforms to all applicable City and CCCIC policies. EMERGENCY / NON -EMERGENCY: Non -Emergency. This item requires only one meeting of the CCCIC Board. DEPARTMENTAL CLEARANCES: Housing and Community Development and City Secretary's Office FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: N/A RECOMMENDATION: Recommendation is requested to approve the loan commitment term for the proposed project to secure TDHCA funding. LIST OF SUPPORTING DOCUMENTS: Agenda for Meeting Unapproved July 8, 2014 Board Meeting Minutes Treasurers Report AGENDA CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION REGULAR MEETING DATE: Tuesday, October 28, 2014 TIME: During the meeting of the City Council beginning at 11:30 a.m. PLACE: City Council Chambers 1201 Leopard Street Corpus Christi, TX 78401 1. Call Meeting to order. 2. Secretary Rebecca Huerta calls roll. Board of Directors Kelley Allen, President Lillian Riojas, Vice -President Rudy Garza Priscilla Leal David Loeb Colleen McIntyre Chad Magill Nelda Martinez Mark Scott 3. Approval of the minutes of July 8, 2014 4. Financial Statement Officers Ron L. Olson, General Manager Rebecca Huerta, Secretary Paul Pierce, Asst. Secretary Constance P. Sanchez, Treasurer Alma Casas, Asst. Treasurer 5. Motion to approve a loan commitment of $918,000 for the Lexington Manor Apartment project, loan to be made from funds provided through the U. S. Department of Housing and Urban Development's HOME Program at 3% interest for a 40 -year term with payments amortized over 40 years and paid from available net cash flow, subject to execution of the funding agreements. 6. Motion to approve a loan commitment of $900,000 for the Riverstone Apartment project, loan to be made from funds provided through the U. S. Department of Housing and Urban Development's HOME Program at 1% interest for a 40 -year term with payments amortized over 40 years and paid from available net cash flow, subject to execution of the funding agreements. 7. Public Comment 8. Adjournment MINUTES CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION (CCCIC) REGULAR MEETING July 8, 2014 3:45 P.M. PRESENT Board of Directors Kelley Allen, President Rudy Garza David Loeb Colleen McIntyre Chad Magill (Arrived 3:49 p.m.) Nelda Martinez Mark Scott ABSENT Lillian Riojas, Vice -President Priscilla Leal Officers Ron L. Olson, General Manager Paul Pierce, Asst. Secretary Constance P. Sanchez, Treasurer Alma Casas, Asst. Treasurer President Allen called the meeting to order in the Council Chambers of City Hall at 3:45 p.m. Assistant Secretary Pierce verified that a quorum was present to conduct the meeting and notice of the meeting had been posted. President Allen moved to Item 3 and called for the approval of the minutes from the August 27, 2013 meeting. Mr. Loeb made a motion to approve the minutes as presented, seconded by Mr. Scott, and passed. President Allen moved to Item 4 and called for the Election of Officers. A motion was made by Mr. Scott to elect Rebecca Huerta as Secretary, Paul Pierce as Assistant Secretary, Constance P. Sanchez as Treasurer, Alma Casas as Assistant Treasurer, and Ronald L. Olson as General Manager, seconded by Mr. Magill, and passed. A motion was made by Ms. Martinez to reappoint Kelley Allen as President, seconded by Mr. Magill, and passed. A motion was made by Ms. Martinez to reappoint Lillian Riojas as Vice -President, seconded by Mr. Scott, and passed. President Allen moved to Item 5 and called for the Financial Statement. Treasurer Constance Sanchez stated that the report included in their packet was different than the report normally included. This report only included the Special Project Fund which is being recommended to use for Item #8 on today's agenda. She also stated she did research to see where this money initially came from. The December 19, 1995 minutes of the Corpus Christi Community Improvement Corporation (CCCIC reflect that the money came from activities from the Corpus Christi Industrial Development Corporation (CCIDC) and the Corpus Christi Housing Finance Corporation (CCHFC) and did not involve any tax money from the City. It was further explained in the minutes that the CCCIC approved the sale of the Frost Brothers building in September of 1993 for $235,000 and that is where the money came from and that the only other activity is interest that has accumulated over the years. The current balance is $274,653 which includes $19 interest for the nine months ending April 30, 2014. The Board 1 had no questions. President Allen moved on to Item 6, approval of designation of Rebecca Huerta as registered agent of the Corporation to replace Armando Chapa and authorizing the filing of a corresponding designation with the Texas Secretary of State. President Allen called for public comment. There was none. A motion was made by David Loeb, seconded by Colleen McIntyre, and passed. President Allen moved on to Item 7, adoption of a resolution changing the fiscal year to a year ending September 30 commencing with the current fiscal year which shall be extended to end on September 30, 2014. President Allen called for public comment. There was none. A motion was made by David Loeb, seconded by Colleen McIntyre, and passed. President Allen moved on to Item 8, motion to approve a transfer of funds in the amount of $250,000 from the CCCIC-Special Projects Fund for reimbursement to the U.S. Department of Housing and Urban Development related to the LULAC project. President Allen called for public comment. There was none. Susan Thorpe, Assistant City Manager stated that in 2008 the Corpus Christi HUD Home account paid $400,000 to LULAC for land with the intent to develop apartments for low income veterans. The project was never completed, but the money was spent. She stated that in 2014 HUD demanded repayment of the $400,000. The City is now reimbursing $250,000 through this action and the remaining $150,000 will be reduced from HUD's future allotments to the City. She also stated the City has a lawsuit against LULAC for the $400,000 and/or any other assets related to this project and that the CCCIC will be reimbursed in the future if any funds and/or assets become available. A motion was made by David Loeb, seconded by Colleen McIntyre, and passed. President Allen called for public comment. There was none. There being no further business to come before the Board, President Allen adjourned the meeting at 3:53 p.m. on July 8, 2014. 2 CITY OF CORPUS CHRISTI CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION COMBINED BALANCE SHEET July 31, 2014 ASSETS Loan Program Special Project HOME Program Fund Fund Fund Total Cash and investments 1,966,974 3,610 310,333 2,280,917 Due from U S Government/Other Fund 0 0 209,725 209,725 Mortgages receivable, net of allowance 8,029,662 0 4,257,427 12,287,089 Investment in property (net of accumulated depreciation) 89,360 21,047 0 110,407 Total assets LIABILITIES AND FUND BALANCE Liabilities: 10,085,997 24,657 4,777,485 14,888,139 Accounts payable 957 0 (9,240) (8,283) Deposits 15,650 0 158 15,808 Due to other funds 25,167 0 65,293 90,460 Total liabilities Fund Balance: 41,774 0 56,211 97,984 Reserved for mortgages 8,029,662 0 4,257,427 12,287,089 Reserved for Investments 89,360 21,047 0 110,407 Unreserved 1,925,200 3,610 463,847 2,392,658 Total fund balance 10,044,223 24,657 4,721,274 14,790,154 Total liabilities and fund balance 10,085,997 24,657 4,777,485 14,888,139 CITY OF CORPUS CHRISTI CORPUS CHRISTI COMMUNITY IMPROVEMENT CORPORATION COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE TWELVE MONTHS ENDING JULY 31, 2014 Loan Program Special Project HOME Program Fund Fund Fund Revenues: Total Contribution from Federal Government 0 0 1,321,952 1,321,952 Interest on loans 67,938 0 13,934 81,872 Interest on investments (31,672) 23 46 (31,603) Rental income 0 0 0 0 Miscellaneous 2,663 0 1,158 3,821 Total revenues 38,928 23 1,337,090 1,376,042 Expenditures: Grants 56,121 0 2,916 59,037 Loan processing 418 250,000 1,390,170 1,640,588 Miscellaneous 9,218 0 0 9,218 Depreciation expense 7,459 0 0 7,459 Total expenditures 73,216 250,000 1,393,086 1,716,302 Excess of revenues over expenditures Other financing sources(uses): Operating transfers in(out): Total other financing sources(uses) (34,288) (249,977) (55,996) (340,260) 0 0 0 0 Excess (Deficit)of revenues and other financing sources over expenditures and other uses Fund balances at August 1, 2013 Fund balances at July 31, 2014 (34,288) (249,977) (55,996) (340,260) 10,078,511 274,634 10,044,223 24,657 4,777,270 15,130,414 4,721,274 14,790,154 AGENDA MEMORANDUM Workshop Item for the City Council Meeting of October 14, 2014 DATE: September 25, 2014 TO: Ronald L. Olson, City Manager FROM: Tom Tagliabue, Director, Intergovernmental Relations tomtag@cctexas.com 361.826.3850 Workshop on credit access business regulation ordinance. STAFF PRESENTER(S): Name Title/Position 1. Tom Tagliabue Director OUTSIDE PRESENTER(S): Name Title/Position 1. Bennett Sandlin Executive Director BACKGROUND: Department Intergovernmental Relations Organization Texas Municipal League Consumer advocates and community activities are urging municipalities, such as Corpus Christi, to use the city's ordinance -making powers to rein in lending practices of payday lenders, also known as credit access businesses or auto title lenders, because the State of Texas has failed to take significant action. The actions requested of municipalities generally include, but are not limited to: (1) regulating the location of payday lending businesses through municipal zoning regulations and (2) limiting the size of loans, interest rates and fees charged by the payday lender to the consumer. Approximately 18 Texas cities are known to have enacted business regulations over payday lenders. Amarillo is expected to adopt the ordinance before the end of September (approved first reading on August 27, 2014) and become the 19th city to enact the ordinance. In Texas, payday and auto -title lending is an estimated $4 -billion -a -year industry. The Office of Consumer Credit Commissioner (OCCC), the state agency responsible for licensing and regulating these businesses in Texas, reports that there are an estimated 3,000 credit access business locations in Texas. According to the OCCC, there are approximately 75 credit access business stores inside the Corpus Christi Metropolitan Statistical Area (MSA). Some 64 credit access business stores (almost 88.8%) are located within the city limits of Corpus Christi. Three each are located in Portland in San Patricio County and Rockport in Aransas County and two stores are located in Robstown in Nueces County. Supporters of the industry claim lenders offer a needed service to consumers who have few options for short-term loans. Critics say the businesses prey on struggling Texans by charging high fees and trapping borrowers in a cycle of debt.' LIST OF SUPPORTING DOCUMENTS: Attachment — TML Uniform Credit Access Business Regulation Ordinance Attachment — Map of State -Licensed Credit Access Business locations in Corpus Christi Attachment - OCCC Credit Access Business Annual Reporting for Corpus Christi MSA Attachment -Implementation information from other Texas cities Attachment -Consumer Financial Protection Bureau Report 1 Texas Tribune "Fight Over Payday Loans, From Capitol to Campaign Trail", January 15, 2014 ORDINANCE NO. AN ORDINANCE OF THE CITY OF SETTING FORTH REGISTRATION REQUIRMENTS AND CREDIT EXTENSION GUIDELINES FOR CREDIT ACCESS BUSINESSES AND PROVIDING A PENALTY. WHEREAS, certain credit access businesses engage in abusive and predatory lending practices, offering easy money to those members of our community who are in a tight spot with onerous terms and fees; and WHEREAS, the practices of certain access businesses cause members of our community to become trapped in a cycle of short term, high interest loans resulting in large debt and huge payments; and WHEREAS, the Pew Charitable Trusts, in their publication entitled Payday Lending in America: Who Borrows, Where they Borrow, and Why, (July 2012), wrote that "payday loans are sold as two-week credit products that provide fast cash, but borrowers are actually indebted for an average of five months per year." The report further noted that "on average, a borrower takes out eight loans of $375 each per year and spends $520 on interest;" and WHEREAS, the Pew Charitable Trusts, in their publication entitled Payday Lending in America: Who Borrows, Where they Borrow, and Why, (July 2012), also noted: "How much borrowers spend on loans depends heavily on the fees permitted by their state. The same $500 storefront loan would generally cost about $55 in Florida, $75 in Nebraska, $87.50 in Alabama, and $100 in Texas, even if it were provided by the same national company in all those states. Previous research has found that lenders tend to charge the maximum permitted in a state;" and WHEREAS, the Pew Charitable Trusts, in their publication entitled Payday Lending in America: Who Borrows, Where they Borrow, and Why, (July 2012), also stated that "the vast majority of borrowers use the loans on a long-term basis, not temporary one. Thus it seems that the payday loan industry is selling a product few people use as designed and that imposes debt that is consistently more costly and longer lasting than advertised;" and WHEREAS, the Community Financial Services Association of America (CFSA), the national trade association for companies that offer small dollar, short-term loans or payday advances includes the following in the "Member Best Practices" as listed on its internet site (http://cfsaa.com/cfsa-member-best-practices.aspx): "Members shall not allow customers to rollover a payday advance (the extension of an outstanding advance by payment of only a fee) unless expressly authorized by state law, but in such cases where authorized will limit rollovers to four or the state limit, whichever is less." The need for consumer understanding was also outlined on this website: "A contract between a member and the customer must fully outline the terms of the payday advance transaction. Members agree to disclose the cost of the service fee both as a dollar amount and as an annual percentage rate ("APR");" and WHEREAS, the Center for Responsible Lending, a non-profit, non-partisan organization, states on its internet site (http://www.responsiblelending.org/other- consumer-loans /tools-resources/fast-facts.html) that: "car title loans are based on the value of a borrower's car - the ability to repay the loans is not factor in the lending decision..."; "loan rates for a car title are typically 20-30 times that of rates charged by credit card issuers..."; "the average car title customer renews their loan 8 times..."; and, "on a $500 title loan, this average customer will pay back $650 in interest over eight months; the principal borrowed will be in addition;" and WHEREAS, lenders hold onto the motor vehicle title and when borrowers cannot continue to pay the fees, they can lose their vehicles, which can drastically affect the borrower's means of transportation for work and other essential household functions. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF • Section 1. Chapter - CREDIT ACCESS BUSINESSES .010- Short Title and Purpose. (a) This article may be known and cited as "Credit Access Businesses Regulation." (b) The purpose of this article is to protect the welfare of the citizens of the City of by monitoring credit access businesses in an effort to reduce abusive and predatory lending practices. To this end, this article establishes a registration program for credit access businesses, imposes restrictions on extensions of consumer credit made by credit access businesses, and imposes recordkeeping requirements on credit access businesses. .020- Definitions. As used in this chapter: (1) CERTIFICATE OF REGISTRATION means a certificate of registration issued by the director under this article to the owner or operator of a credit access business. (2) CONSUMER means an individual who is solicited to purchase or who purchases the services of a credit access business. (3) CONSUMER'S LANGUAGE OF PREFERENCE is the language the consumer understands best. (4) CREDIT ACCESS BUSINESS has the meaning given that term in Section 393.601 of the Texas Finance Code. (5) DEFERRED PRESENTMENT TRANSACTION has the meaning given that term in Section 393.601 of the Texas Finance Code. (6) DIRECTOR means the director of the department designated by the City Council, City Manager, or City Councilor City Manager's Designee, to enforce and administer this chapter. (7) EXTENSION OF CONSUMER CREDIT has the meaning given that term in Section 393.001 of the Texas Finance Code. (8) MOTOR VEHICLE TITLE LOAN has the meaning given that term in Section 393.601 of the Texas Finance Code. (9) PERSON means any individual, corporation, organization, partnership, association, financial institution, or any other legal entity. (10)REGISTRANT means a person issued a certificate of registration for a credit access business under this chapter and includes all owners and operators of the credit access business identified in the registration application filed under this chapter. (11) STATE LICENSE means a license to operate a credit access business issued by the Texas Consumer Credit Commissioner under Chapter 393, Subchapter G of the Texas Finance Code. .030- Violations; Penalty (a) A person who violates a provision of this chapter, or who fails to perform an act required of the person by this chapter, commits an offense. A person commits a separate offense for each and every violation relating to an extension of consumer credit, and for each day during which a violation is committed, permitted, or continued. (b) An offense under this chapter is punishable by a fine of not more than $500. (c) A culpable mental state is not required for the commission of an offense under this article and need not be proved. (d) The penalties provided for in Subsection (b) are in addition to any other remedies that the city may have under city ordinances and state law. .040- Defenses It is a defense to prosecution under this article that at the time of the alleged offense the person was not required to be licensed by the state as a credit access business under Chapter 393, Subchapter G, of the Texas Finance Code. .050- Registration Required A person commits an offense if the person acts, operates, or conducts businesses as a credit access business without a valid certificate of registration. A certificate of registration is required for each physically separate credit access business. .060- Registration Application (a) To obtain a certificate of registration for a credit access business, a person must submit an application on a form provided for that purpose to the director. The application must contain the following: (1) The name, street address, mailing address, facsimile number, and telephone number of the applicant. (2) The business or trade name, street address, mailing address, facsimile number, and telephone number of the credit access business. (3) The names, street addresses, mailing addresses, and telephone numbers of all owners of the credit access business, and the nature and extent of each person's interest in the credit access business. (4) A copy of a current, valid state license held by the credit access business pursuant to Chapter 393, Subchapter G of the Texas Finance Code. (5) A copy of a current, valid certificate of occupancy showing that the credit access business is in compliance with the City of Code. (6) A non-refundable application fee for the amount established. (b) An applicant or registrant shall notify the director within 45 days after any material change in the information contained in the application for a certificate of registration, including, but not limited to, any change of address and any change in the status of the state license held by the applicant or registrant. .070- Issuance and Display of Certificate of Registration; Presentment upon Request. (a) The director shall issue to the applicant a certificate of registration upon receiving a completed application under Section 5.17.040. (b) A certificate of registration issued under this section must be conspicuously displayed to the public in the credit access business. The certificate of registration must be presented upon request to the director or any peace officer for examination. .080- Expiration and Renewal of Certificate of Registration. (a) A certificate of registration expires on the earliest of: (1) One year after the date of issuance; or (2) The date of revocation, suspension, surrender, expiration without renewal, or other termination of the registrant's state license. (b) A certificate of registration may be renewed by making application in accordance with Section 5.17.040. A registrant shall apply for renewal at least 30 days before the expiration of the registration. .090- Non -transferability. A certificate of registration for a credit access business is not transferable. .100- Maintenance of Records. (a) A credit access business shall maintain a complete set of records of all extensions of consumer credit arranged or obtained by the credit access business, which mush include the following information: (1) The name and address of the consumer. (2) The principal amount of cash actually advanced. (3) The length of the extension of consumer credit, including the number of installments and renewals. (4) The fees charged by the credit access business to arrange or obtain an extension of consumer credit; and (5) The documentation used to establish a consumer's income under Section .110 of this ordinance. (b) A credit access business shall maintain a copy of each written agreement between the credit access business and a consumer evidencing an extension of a consumer credit (including, but not limited to, any refinancing or renewal granted to the consumer). (c) A credit access business shall maintain copies of all quarterly reports filed with the Texas Consumer Credit Commissioner under Section 393.627 of the Texas Finance Code. (d) The records required to be maintained by a credit access business under this section must be retained for at least three years and made available for inspection by the city upon request during the usual and customary business hours of the credit access business. .110- Restriction on Extension of Consumer Credit. (a) The cash advanced under an extension of consumer credit that a credit access business obtains for a consumer or assists a consumer in obtaining in the form of a deferred presentment transaction may not exceed 20 percent of the consumer's gross monthly income. (b) The cash advanced under an extension of consumer credit that a credit access business obtains for a consumer or assists a consumer in obtaining in the form of a motor vehicle title loan may not exceed the lesser of: (1) Three percent of the consumer's gross annual income; or (2) 70 percent of the retail value of the motor vehicle. (c) A credit access business shall use a paycheck or other documentation establishing income to determine a consumer's income. (d) An extension of consumer credit that a credit access business obtains for a consumer or assists a consumer in obtaining and that provides for repayment in installments may not be payable in more than four installments. Proceeds from each installment must be used to repay at least 25 percent of the principal amount of the extension of consumer credit. An extension of consumer credit that provides for repayment in installments many not be refinanced or renewed. (e) An extension of consumer credit that a credit access business obtains for a consumer or assists a consumer in obtaining and that provides for a single lump sum repayment may not be refinanced or renewed more than three times. Proceeds from each refinancing or renewal must be used to repay at least 25 percent of the principal amount of the original extension of consumer credit. (f) For purposes of this section, an extension of consumer credit that is made to a consumer within seven days after a previous extension of consumer credit has been paid by the consumer will constitute a refinancing or renewal. .120- Requirement of Consumer Understanding of Agreement. (a) Every agreement between the credit access business and a consumer evidencing an extension of consumer credit (including, but not limited to, any refinancing or renewal granted to the consumer), must be written in the consumer's language of preference. Every credit access business location must maintain on its premises, to be available for use by consumers, agreements in the English and Spanish languages. (b) For every consumer who cannot read, every agreement between the credit access business and a consumer evidencing an extension of consumer credit (including, but not limited to, any refinancing or renewal granted to the consumer) must be read to the consumer in its entirety in the consumer's language of preference, prior to the consumer's signature. (c) For every consumer who cannot read, every disclosure and notice required by law must be read to the consumers in its entirety in the consumer's language of preference, prior to the consumer's signature. .130- Referral to Consumer Credit Counseling. A credit access business shall provide a form, to be prescribed by the Director, to each consumer seeking assistance in obtaining an extension of consumer credit which references non-profit agencies that provide financial education and training programs and agencies with cash assistance programs. The form will also contain information regarding extensions of consumer credit, and must include the information required by .100(a)(1)-(5) of this ordinance specific to the loan agreement with the consumer. If the Director has prescribed a form in the consumer's language of preference, the form must be provided in the consumer's language of preference. Section 2. Should any article, section, part, paragraph, sentence, phrase, clause, or word of this ordinance, for any reason be held illegal, inoperative, or invalid, or if any exception to or limitation upon any general provision herein contained be held to be unconstitutional or invalid or ineffective, the remainder shall, nevertheless, stand effective and valid as if it had been enacted and ordained without the portion held to be illegal, inoperative, unconstitutional, invalid, or ineffective. Section 3. This ordinance shall take effect , 2013 ADOPTED THIS day of 2013. CITY OF ATTEST: Mayor City Clerk APPROVED AS TO FORM: City Attorney •• • • 9 Nueces Bay /1813 City of Corpus Christi State -Licensed Credit -Access Businesses • • • • • • • •• • • • 1 i • • • • w , • • • • Corpus Christi Bay ti 0 1 2 4 Miles Credit Access Businesses in the Corpus Christi Metropolitan Statistical Area (Aransas, Nueces and San Patricio Counties) County Master File Number License Number Licensee Name DBA Address City State Zip Code License Date San Patricio County 16381 60496 ACSO OF TEXAS LP ADVANCE AMERICA 1107 W US HWY 181 STE B PORTLAND TX 78374 2/29/2012 16363 66560 TITLEMAX OF TEXAS INC TITLEMAX 1202 WILDCAT DR PORTLAND TX 78374 10/4/2013 16413 61362 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #546 1508 WILDCAT DR PORTLAND TX 78374 2/14/2012 TOTAL 3 Aransas County 16381 60289 ACSO OF TEXAS LP ADVANCE AMERICA 2207 HWY 35 N STE D2 ROCKPORT TX 78382 2/29/2012 16413 61624 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1538 2009 HWY 35 N ROCKPORT TX 78382 2/15/2012 1400031541 59368 COTTONWOOD FINANCIAL TEXAS LP THE CASH STORE 2345 HWY 35 N ROCKPORT TX 78382 1/30/2012 TOTAL 3 Ilim Ilim Ilim Ilim Ilim Ilim Ilim Ilim Ilim Ilim Ilim Ilim Nueces County 16407 60856 FIRST CASH CREDIT LTD FIRST CASH ADVANCE 357 W AVE J STE 2 ROBSTOWN TX 78380 12/31/2011 16413 61200 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #595 226 E MAIN AVE ROBSTOWN TX 78380 2/14/2012 TOTAL 2 16407 60874 FIRST CASH CREDIT LTD FIRST CASH PAWN 2746 S STAPLES CORPUS CHRISTI TX 78404 12/31/2011 771 62030 TEXAS EZPAWN LP EZPAWN 3700 BALDWIN CORPUS CHRISTI TX 78405 3/30/2012 16334 59506 CASH AMERICA FINANCIAL SERVICES INC 2908 SOUT PORT AVE CORPUS CHRISTI TX 78405 11/30/2012 16334 59507 CASH AMERICA FINANCIAL SERVICES INC 2110 AGNES CORPUS CHRISTI TX 78405 11/30/2012 16407 60898 FIRST CASH CREDIT LTD FIRST CASH PAWN 2104 MORGAN AVE CORPUS CHRISTI TX 78405 12/30/2011 16413 61369 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1456 1305 S PORT AVE CORPUS CHRISTI TX 78405 2/15/2012 17170 63979 THE MONEY STORE LP SPEEDY CASH 2102 B BALDWIN CORPUS CHRISTI TX 78405 9/18/2012 771 62044 TEXAS EZPAWN LP EZPAWN 2203 LEOPARD ST CORPUS CHRISTI TX 78408 3/30/2012 16379 60070 TEXAS CAR TITLE AND PAYDAY LOAN SERVICES, INC 3715 LEOPARD ST CORPUS CHRISTI TX 78408 3/16/2012 16404 61910 WELLSHIRE FINANCIAL SERVICES LLC LOANSTAR TITLE LOANS 1928 N PADRE ISLAND DR CORPUS CHRISTI TX 78408 3/16/2012 16407 60828 FIRST CASH CREDIT LTD FIRST CASH PAWN 3775 LEOPARD CORPUS CHRISTI TX 78408 12/30/2011 16413 61398 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1453 3765 LEOPARD ST CORPUS CHRISTI TX 78408 2/15/2012 17170 63929 THE MONEY STORE LP SPEEDY CASH 3710 LEOPARD ST CORPUS CHRISTI TX 78408 9/18/2012 16381 60362 ACSO OF TEXAS LP ADVANCE AMERICA 13637 NORTHWEST BLVD STE 300 CORPUS CHRISTI TX 78410 2/29/2012 16398 60804 SOUTHWESTERN & PACIFIC SPECIALTY FINANCE INC CHECK N GO 13434 LEOPARD RD STE A-2 CORPUS CHRISTI TX 78410 3/2/2012 16407 60912 FIRST CASH CREDIT LTD FIRST CASH PAWN 11223 UP RIVER RD CORPUS CHRISTI TX 78410 12/31/2011 17170 63971 THE MONEY STORE LP SPEEDY CASH 11217 LEOPARD ST CORPUS CHRISTI TX 78410 9/18/2012 8746 62199 TEXAS EZMONEY LP EZMONEY LOAN SERVICES 3812 S STAPLES SUITE D CORPUS CHRISTI TX 78411 3/30/2012 8746 62247 TEXAS EZMONEY LP EZMONEY LOAN SERVICES 5425 S PADRE ISLAND DR STE 101 CORPUS CHRISTI TX 78411 3/30/2012 16379 60182 TEXAS CAR TITLE AND PAYDAY LOAN SERVICES, INC 5201 EVERHART RD CORPUS CHRISTI TX 78411 3/16/2012 16381 60491 ACSO OF TEXAS LP ADVANCE AMERICA 5656 WEBER RD STE 102 CORPUS CHRISTI TX 78411 2/29/2012 16404 61907 WELLSHIRE FINANCIAL SERVICES LLC LOANSTAR TITLE LOANS 5401 S STAPLES CORPUS CHRISTI TX 78411 3/16/2012 16363 66081 TITLEMAX OF TEXAS INC TITLEMAX 4517 EVERHART RD CORPUS CHRISTI TX 78411 5/13/2013 16407 60911 FIRST CASH CREDIT LTD FIRST CASH PAWN 4126 SOUTH PADRE ISLAND DR CORPUS CHRISTI TX 78411 12/31/2011 16407 60927 FIRST CASH CREDIT LTD FIRST CASH PAWN 4830 EVERHART RD CORPUS CHRISTI TX 78411 12/30/2011 16407 60961 FIRST CASH CREDIT LTD FIRST CASH ADVANCE 3818 S. STAPLES CORPUS CHRISTI TX 78411 12/31/2011 16413 61632 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #544 5425 S PADRE ISLAND DR STE 105 CORPUS CHRISTI TX 78411 2/14/2012 16413 61637 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1546 3825 S STAPLES ST CORPUS CHRISTI TX 78411 2/15/2012 16413 61642 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #541 5634 WEBER RD STE A CORPUS CHRISTI TX 78411 2/14/2012 16419 63596 SCIL TEXAS LLC SPEEDY CASH 4009 5 PADRE ISLAND DR CORPUS CHRISTI TX 78411 5/25/2012 1400031541 59404 COTTONWOOD FINANCIAL TEXAS LP THE CASH STORE 4117 S STAPLES BLVD STE 280 CORPUS CHRISTI TX 78411 1/30/2012 16346 59809 CHECK INTO CASH OF TEXAS LLC 1502 AIRLINE RD STE 208 CORPUS CHRISTI TX 78412 3/23/2012 16379 60041 TEXAS CAR TITLE AND PAYDAY LOAN SERVICES, INC 4407 SOUTH ALAMEDA STREET CORPUS CHRISTI TX 78412 3/16/2012 16381 60484 ACSO OF TEXAS LP ADVANCE AMERICA 1205 AIRLINE RD CORPUS CHRISTI TX 78412 2/29/2012 16398 60637 SOUTHWESTERN & PACIFIC SPECIALTY FINANCE INC CHECK N GO 1220 AIRLINE RD STE 140 CORPUS CHRISTI TX 78412 3/2/2012 16404 61847 WELLSHIRE FINANCIAL SERVICES LLC LOANSTAR TITLE LOANS 4650 EVERHART RD CORPUS CHRISTI TX 78412 3/16/2012 1400031541 150518 COTTONWOOD FINANCIAL TEXAS LP The Cash Store 6181 SARATOGA BLVD CORPUS CHRISTI TX 78412 7/11/2014 771 62014 TEXAS EZPAWN LP EZMONEY LOAN SERVICES 5809 WEBER RD STE A CORPUS CHRISTI TX 78413 3/30/2012 16289 59185 APPROVED MONEY CENTER LLC APPROVED MONEY CENTER 5702 S STAPLES STE B-7 CORPUS CHRISTI TX 78413 1/30/2012 16381 60369 ACSO OF TEXAS LP ADVANCE AMERICA 6601 EVERHART RD STE H5 CORPUS CHRISTI TX 78413 2/29/2012 16398 60584 SOUTHWESTERN & PACIFIC SPECIALTY FINANCE INC CHECK N GO 4001 SARATOGA BLVD CORPUS CHRISTI TX 78413 3/2/2012 16404 61861 WELLSHIRE FINANCIAL SERVICES LLC LOANSTAR TITLE LOANS 5801 EVERHART RD CORPUS CHRISTI TX 78413 3/16/2012 16363 64376 TITLEMAX OF TEXAS INC TITLEMAX 5839 WEBER RD CORPUS CHRISTI TX 78413 10/2/2012 16407 60958 FIRST CASH CREDIT LTD FIRST CASH PAWN 5017 SARATOGA BLVD SUITE 137 CORPUS CHRISTI TX 78413 12/31/2011 8746 62257 TEXAS EZMONEY LP EZMONEY LOAN SERVICES 5717 SARATOGA BLVD, SUITE 111 CORPUS CHRISTI TX 78414 3/30/2012 771 62015 TEXAS EZPAWN LP EZMONEY LOAN SERVICES 3920 SPID CORPUS CHRISTI TX 78415 3/30/2012 16379 60035 TEXAS CAR TITLE AND PAYDAY LOAN SERVICES, INC 4014 SOUTH PORT AVENUE CORPUS CHRISTI TX 78415 3/16/2012 16334 59505 CASH AMERICA FINANCIAL SERVICES INC 4365 S PORT AVE CORPUS CHRISTI TX 78415 11/30/2012 16334 59514 CASH AMERICA FINANCIAL SERVICES INC 5218 KOSTORYZ ROAD CORPUS CHRISTI TX 78415 11/30/2012 16398 60748 SOUTHWESTERN & PACIFIC SPECIALTY FINANCE INC CHECK N GO 4249 KOSTORYZ RD CORPUS CHRISTI TX 78415 3/2/2012 16404 61924 WELLSHIRE FINANCIAL SERVICES LLC LOANSTAR TITLE LOANS 4918 AYERS STREET, SUITE 112 CORPUS CHRISTI TX 78415 3/16/2012 16407 60904 FIRST CASH CREDIT LTD FIRST CASH PAWN 4336 AYERS CORPUS CHRISTI TX 78415 12/30/2011 16412 61070 KJC AUTO TITLE LOAN CORP -NORTH TEXAS 4238 AYERS ST CORPUS CHRISTI TX 78415 8/23/2012 16413 61397 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1455 3216 S PORT AVE CORPUS CHRISTI TX 78415 2/15/2012 16413 61478 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1451 4130 AYERS ST CORPUS CHRISTI TX 78415 2/15/2012 15048 64986 BIGHAMIAN, MOSTAFA BUDGET PAY DAY & TITLE LOAN 3902 S PORT STE #2 CORPUS CHRISTI TX 78415 5/10/2013 17170 63939 THE MONEY STORE LP SPEEDY CASH 4701 AYERS STE 600-10 CORPUS CHRISTI TX 78415 9/18/2012 1400031541 66628 COTTONWOOD FINANCIAL TEXAS LP THE CASH STORE 4425 KOSTORYZ RD STE B CORPUS CHRISTI TX 78415 9/27/2013 16381 60477 ACSO OF TEXAS LP ADVANCE AMERICA 1813-B S PADRE ISLAND DR CORPUS CHRISTI TX 78416 2/29/2012 16407 150355 FIRST CASH CREDIT LTD FIRST CASH PAWN 1620 S PADRE ISLAND DR STE 120 CORPUS CHRISTI TX 78416 4/11/2014 16413 61623 ACE CREDIT ACCESS LLC ACE CASH EXPRESS 14548 1805 S PADRE ISLAND DR CORPUS CHRISTI TX 78416 2/14/2012 16398 60633 SOUTHWESTERN & PACIFIC SPECIALTY FINANCE INC CHECK N GO 10309 SOUTH PADRE ISLAND DR STE H CORPUS CHRISTI TX 78418 3/2/2012 16413 61618 ACE CREDIT ACCESS LLC ACE CASH EXPRESS #1537 1209 WALDRON RD CORPUS CHRISTI TX 78418 2/15/2012 1400031541 59325 COTTONWOOD FINANCIAL TEXAS LP THE CASH STORE 10241 S PADRE ISLAND DR STE 125 CORPUS CHRISTI TX 78418 1/30/2012 TOTAL 64 Texas Municipal Implementation of Credit Access Business Regulation Ordinances ��- # of Lenders Ordinance Enacted Registration Fee Details Austin 130-150 Jan-12 $50 non-refundable annual registration fee per retail location $50 non-refundable annual registration fee per retail location $50 non-refundable annual registration fee per retail location $50 non-refundable annual registration fee per retail location Telecommunications and Regulatory Affairs Office handles registration and regulation as well as consumer education Also has zoning/land use ordinance Martha Hernandez Telecommunications & Regulatory Affairs 512/974-2466 Martha.Hernandez@austintexas.gov Use existing FTEs. Gave five months from passing ordinance to actively enforcing regulatoins Initially complaint driven process. Investigate not just paperwork, but also financial issues. In 2 years, only have fewer than 10 complaints. Have seen drop from 160 CABs to about 134. Some have moved to ETJ. Send letters of non-compliance first and have reasonable time to cure. No cases taken to trial yet. All have been negotiated settlements. Bryan 10 8/1/2014 Critical to offer consumers resources to refer to non-profits Passed jointly with the City of College Station Will enforce on complaint only, not through active audits Registration & regulations will be through single office (Community Services Department) College Station 5 08/27/14 Council passed ordinance in Feb. 2014, but didn't implement for 6 months to give staff time to create registration form, undergo training, update website, etc. Passed jointly with the City of Bryan Created consumer education documents & made available on website David Brower Community Development Office: (979) 764-3810 Dallas Will enforce on complaint only, not through active audits Registration & regulations will be through single office (Community Services Department) 3/1/2011 Council passed ordinance in Feb. 2014, but didn't implement for 6 months to give staff time to create registration form, undergo training, update website, etc. Dallas March 2011 land use ordinance (restriction from residential areas & highways). Effective immediately. CABs had to get special use permits before receiving a Certificate of Occupancy. The Honorable Jerry Allen City Council Member City of Dallas 1500 Marilla Street Room 5FS 1 Dallas, TX 7520 214-670-4068 Dallas was sued, won in District Court and at Court of Appeals. Since March 2011, no new payday or auto title business opened in Dallas. June 2011 adopted the TML uniform ordinance. Went into effect January 1, 2012. Compliance was complaint-driven. Complaints received via City's 3-1-1 system. If complaints were about rates or collections, they are automatically forwarded to a federal agency - the Consumer Financial Protection Bureau. Created an audit program. CABs were given a warning notice first to correct problems before a fine was assessed. No new staff hired. Had 38 Cash America Pawn Shops shut down the payday lending part of their store in Dallas. Denton <20 3/21/2013 $50 non-refundable registration fee Council gave 21 days from ordinance adoption to implementation Implementation date is April 9, 2013 Complaint driven and perform on-site inspections. No additional staff were hired. Existing staff were trained internally. A few CABs ignore the ordinance, but were identified within the first six months and are now in compliance. Regstration through one-stop shop Kurt Hansen Building Official 940/349-8362 kurt.hansen@cityofdenton.com Will enforce on complaint only, not through active audits Municipal Court staff provided training for Code Enforcement staff Enforcement to check on City certificate (phase 1), not on loan terms (phase 2) One-stop shop staff are verifying registration with State (OCCC) Use existing staff, no additional staff hired Needed to update web portal for citizens to file complaints Are registering payday lenders, auto title lenders & pawn shops Finding some stores don't have certificates of occupancy. Council adoptied zoning ordinance on 9/16/14 that prohibits payday lender and title - loan companies from operating in the same building as pawnshops Rules went into effect 1/1/2013 Registration is done at City Finance Office City notified businesses to be registered in October 2012, giving two months notice. El Paso — 80 January -14 Enforcement history: Only about 9 credit access businesses with retail locations in the city limits have not registered Some credit access businesses have moved out of the city and into the suburbs. Some credit access businesses have transferred loans from a retail location in the city to a sister organization outside of the city. Website with consumer information, complaint form, registration checklist, etc. Ms. Sol Cortez City Attorney's Office 915/212-0033 San Antonio 200 9/20/2012 Jim Burch Compliance Resolution 210/207-2705 james.burch@sanantonio.gov $50 non-refundable annual registration fee per retail location $195 non-refundable annual registration fee per retail location $50 non-refundable annual registration fee per retail location Goal is to eventually establish community loan centers (Brownsville model) that limits interest to 18%. Need to attact capital to start loan centers. Registration at the City Planning Department Police Department investigates alledged wrongdoings. Multiple City departments can inspect and request for proof of registration certificate, including Police, Fire Inspectors, Code Enforcement Officers, and Building Inspectors. $50 non-refundable registration fee Council gave 21 days from ordinance adoption to implementation Implementation date is April 9, 2013 Complaint driven and perform on-site inspections. No additional staff were hired. Existing staff were trained internally. A few CABs ignore the ordinance, but were identified within the first six months and are now in compliance. Regstration through one-stop shop Granted a three month grace period for registration of credit access businesses Will enforce on complaint only, not through active audits Municipal Court staff provided training for Code Enforcement staff Enforcement to check on City certificate (phase 1), not on loan terms (phase 2) One-stop shop staff are verifying registration with State (OCCC) Use existing staff, no additional staff hired Needed to update web portal for citizens to file complaints Are registering payday lenders, auto title lenders & pawn shops Finding some stores don't have certificates of occupancy. Council adoptied zoning ordinance on 9/16/14 that prohibits payday lender and title - loan companies from operating in the same building as pawnshops Rules went into effect 1/1/2013 Registration is done at City Finance Office City notified businesses to be registered in October 2012, giving two months notice. Are not performing on-site compliance inspections of CABs. If complaints are filed about rate issues, information is forwarded to the City Attorney's office. Applications must include: (1) complete registration, (2) certificate of occupancy, (3) license issued by the OCCC, (4) registration fee. Enforcement history: Only about 9 credit access businesses with retail locations in the city limits have not registered Some credit access businesses have moved out of the city and into the suburbs. Some credit access businesses have transferred loans from a retail location in the city to a sister organization outside of the city. Website with consumer information, complaint form, registration checklist, etc. CFPB Data Point: Payday Lending The CFPB Office of Research clpb Consumer Financial Protection Bureau March 2014 ■ Kathleen Burke ■ Jonathan Lanning ■ Jesse Leary ■ Jialan Wang This is the first in an occasional series of publications from the Consumer Financial Protection Bureau's Office of Research. These publications are intended to further the Bureau's objective of providing an evidence -based perspective on consumer financial markets, consumer behavior, and regulations to inform the public discourse. 2 CFPB DATA POINT: PAYDAY LENDING Table of contents Table of contents 3 Introduction 4 Data 6 Loan sequences 7 3.i Loan sequence definitions and state roll-over restrictions 7 3.t Sequence duration and loan volume 10 3.3 Loan size and amortization 16 Annual loan usage 20 4.1 Numbers of sequences and loans 22 4.2 Repayers, renewers, defaulters 25 Appendix A: Discussion and Analysis of Annual Loan Usage Using Alternate Sampling Methods 29 3 CFPB DATA POINT: PAYDAY LENDING Introduction In this Data Point we present the results of several analyses of consumers' use of payday loans. The focus of the analyses is loan sequences, the series of loans borrowers often take out following a new loan. Key findings of this report include: ■ Over 8o% of payday loans are rolled over or followed by another loan within 14 days (i.e., renewed). Same-day renewals are less frequent in states with mandated cooling -off periods, but 14 -day renewal rates in states with cooling -off periods are nearly identical to states without these limitations. We define loan sequence as a series of loans taken out within 14 days of repayment of a prior loan. ■ While many loan sequences end quickly, 15% of new loans are followed by a loan sequence at least 10 loans long. Half of all loans are in a sequence at least 10 loans long. ■ Few borrowers amortize, or have reductions in principal amounts, between the first and last loan of a loan sequence. For more than 8o% of the loan sequences that last for more than one loan, the last loan is the same size as or larger than the first loan in the sequence. Loan size is more likely to go up in longer loan sequences, and principal increases are associated with higher default rates. ■ Monthly borrowers are disproportionately likely to stay in debt for 11 months or longer. Among new borrowers (i.e., those who did not have a payday loan at the beginning the year covered by the data) 22% of borrowers paid monthly averaged at least one loan per pay period. The majority of monthly borrowers are government benefits recipients. ■ Most borrowing involves multiple renewals following an initial loan, rather than multiple distinct borrowing episodes separated by more than 14 days. Roughly half of new 4 CFPB DATA POINT: PAYDAY LENDING borrowers (48%) have one loan sequence during the year. Of borrowers who neither renewed nor defaulted during the year, 6o% took out only one loan. The next section describes the data used in the analysis; subsequent sections describe the specific analyses and results exploring sequence durations, loan sizes and amortization, and loan usage over the year. An appendix discusses sampling issues and provides results from different sampling approaches. 5 CFPB DATA POINT: PAYDAY LENDING Data The Bureau obtained data from a number of storefront payday lenders through the supervisory process. These are the same data from which the Bureau drew a sample for use in the analysis described in the CFPB Payday Loans and Deposit Advance Products White Paper (April 2013), hereafter referred to as the "White Paper."1 The data provide information on all payday loans extended by each lender over a period of at least 12 months. The dataset contains an anonymous customer ID that allows us to link all loans made to the same consumer by a given lender during the observed time period. The data provided by different lenders contain differing levels of detail. In addition to information on origination and maturity dates of the loans, the majority of the analysis presented in this Data Point requires that we determine whether a borrower defaulted on a loan. The information on which we base our analysis of defaults is only available for a subset of the lenders.2 In addition, while some of the lenders provided more than 12 months of data, most did not. Therefore, we limit our analysis to 12 months for each lender so that the period of time over which we measure borrowing at each lender is consistent across lenders. The dataset used in the detailed analysis of borrowing patterns includes information on over 12 million loans in 3o states, and covers 12 -month windows in 2011 and 2012. We describe further details of our sample and methodology in each section. 1 CFPB, "Payday Loans and Deposit Advance Products, a White Paper of Initial Data Findings," available at http://files.consumerfinance.gov/f/2oi3o4_cfpb_payday-dap-whitepaper.pdf . 2 Portions of the analysis can be run without using information about loan defaults. We have run those portions of the analysis for a broader set of lenders, and the results are very similar. 6 CFPB DATA POINT: PAYDAY LENDING Loan sequences In this section, we describe patterns of borrowing following an initial payday loan. A primary driver of the cost of using payday loans is the extent to which borrowers roll loans over or engage in re -borrowing within a short period of time after repaying a loan. We use the term "renewal" to describe both paying additional fees to roll over a loan and re -borrowing within a given time period after repaying a loan. One way borrowers could mitigate the cost of renewing, if they have difficulty paying off the initial loan in full, would be to borrow less each time they take out a new loan, and thereby effectively amortize the debt through a series of smaller and smaller balloon loans. Therefore, in addition to describing the duration of loan sequences, we study whether consumers' loan amounts change over the course of a loan sequence. 3.1 Loan sequence definitions and state roll- over restrictions We define a loan sequence as an initial payday loan plus the series of subsequent loans that are renewed within 14 days of repayment of the prior loan. For most consumers, re -borrowing within 14 days means borrowing prior to receiving another paycheck after repaying the prior loan. In addition, a number of states place restrictions on rolling loans over or on taking out a new loan within some short window after repaying a loan. A definition of loan sequence that only includes direct roll-overs or loans taken out on the same day that another is repaid could therefore understate the true duration over which consumers re -borrow before they fully repay an initial need. 7 CFPB DATA POINT: PAYDAY LENDING Figure 1 shows the share of loans that are renewed within three different timeframes. These results are for all loans made during 12 -month windows for a set of lenders for which we have information on loan origination and maturity dates.3 The categories are based on the state of the storefront where the loans were taken out, with same-day, 7 -day, and 14 -day renewal rates for groups of states based on regulatory restrictions around roll-overs and waiting periods, and for all states represented in the sample. The first category includes five states with no effective limitations on roll-overs: Kansas, Ohio, Nevada, Utah and Texas.4 The second category consists of some of the many states that prohibit roll-overs but do not prevent lenders from making a loan to a borrower on the same day that a prior loan is repaid. The states in this category are California, Iowa, Kentucky, Michigan, Mississippi, Nebraska, New Mexico, South Carolina, and Tennessee. The final category includes states that impose a waiting period of at least one day after a loan is repaid before a lender can make another loan to the same borrower. These states are Alabama, Florida, Virginia and Wisconsin.5 Note that waiting periods may not be applicable for every loan — in Wisconsin and Alabama, they are triggered only after two consecutive loans — and therefore we observe some same-day renewals in these states. The "All" category includes all of the above states, as well as states with intermediate restrictions that do not fit neatly into the other categories: Alaska, Idaho, Illinois, Louisiana, Missouri, Oklahoma, Rhode Island and Washington. 3 We have also conducted this analysis for the subset of lenders that are used in the detailed loan sequence analysis — those lenders for whom we have the information that we use to analyze defaults — and the results are very similar. 4 While the deferred presentment statute in Texas imposes some restrictions on roll-overs, nearly all payday loans during our sample period were being made under the Credit Services Organization (CSO) model, which carries few restrictions. Licensed Ohio lenders operate under the state's mortgage loan and small loan statutes, so the limitations of its deferred presentment statutes do not apply to the loans in our sample. 5 Alabama's law specifies that borrowers must wait until the next business day to take out a loan after two consecutive loans are paid in full. Florida's law specifies a 24-hour cooling -off period after each loan. Virginia law forbids lenders from making a new loan on the same day a borrower repays a previous one. Wisconsin allows one renewal and requires a 24 hour waiting period after that renewal. 8 CFPB DATA POINT: PAYDAY LENDING FIGURE 1: PAYDAY LOAN RENEWAL RATES BY STATE ROLL-OVER RESTRICTION 75 81 84 83 79 63 No Restriction No Rollovers 81 74 18 Waiting Period 57 82 77 All Same Day Window for Renewal Seven Day Fourteen Day Figure 1 shows that while waiting periods are associated with a much lower level of same-day renewals, states with waiting periods or rollover restrictions have seven-day and 14 -day renewal rates that are nearly identical to other states. Over all states in the sample, 82% of loans are renewed within fourteen days, and this percentage varies by only three percentage points across the three groups of states. 9 CFPB DATA POINT: PAYDAY LENDING 3.2 Sequence duration and loan volume In this section we use data from the subset of lenders for whom we have sufficient information to analyze defaults. For the purposes of this analysis, a borrower is considered to have defaulted on a loan if the loan had not been repaid at the time the data were provided to the CFPB, or 30 days after the maturity date of the loan, whichever is later. Using this definition, loans with maturity dates within 3o days of the end of the 12 -month sample period cannot be considered to have defaulted, and are included in the analysis as loans on which the borrower did not default.6 The loan sequences included in this analysis are those that began in the second month of a lender's 12 -month sample period. 7 We restrict the analysis to these sequences so that we can ensure we are able to observe the first loan in a sequence and thus accurately measure sequence duration.8 Using sequences that begin in the second month gives us the longest window to observe sequence length. As our dataset contains at most one year of loan usage for a given consumer, we are able to describe the pattern of sequence lengths up to roughly 11 months, but we cannot observe how long sequences may extend beyond 11 months. Figure 2 shows the distribution of loan sequence lengths. The darker portion of the bar shows sequences that did not end in default, the lighter portion shows sequences that did end in default. Figure 2 shows that 36% of new sequences end with the initial loan being repaid; on 4% 6 We have conducted the analysis dropping these loans and the results are essentially unchanged. 7 If the distribution of sequence lengths is stable over time, then using a cohort of sequences that begin in the same time period will provide an unbiased estimate of the length of all loan sequences. See, e.g., Carlson and Horrigan, "Measures of Unemployment Duration as Guides to Research and Policy: Comment," The American Economic Review, Vol. 73, No. 5 (Dec., 1983), pp. 1143-1150. 8 Supplemental Security Income (SSI) benefits are normally disbursed on the first of the month, unless the first falls on a holiday or weekend, in which case they are disbursed on the prior business day. The exact timing of the "second month" is adjusted forward by a day if the first month of a lender's data period does not include a day on which (SSI) benefits were disbursed. This is done to ensure that loans to SSI recipients in the second month are truly new loans. We have also conducted the analysis for episodes that began in the third month, and the results are very similar. 10 CFPB DATA POINT: PAYDAY LENDING of new sequences the borrower defaults on the first loan. More than half of new sequences do not go past a single renewal. On the other hand, 22% of sequences extend for seven or more loans, and 15% of sequences extend for 10 or more loans. FIGURE 2: DURATION OF PAYDAY LOAN SEQUENCES 0 O a9 coz cr tl7 Ge) o O 4 N J 2 o d CL 1 2 3 4 5 6 7 8 9 10 11+ Number of Loans in Sequence 11 CFPB DATA POINT: PAYDAY LENDING FIGURE 3: SHARE OF PAYDAY LOANS ORIGINATED IN PAYDAY LOAN SEQUENCES OF DIFFERENT LENGTHS 0 - 0 0 1 2 3 4 5 6 7 8 9 10 11+ Number of Loans in Sequence Though most loan sequences are short, most loans are part of long sequences. Figure 3 shows that half of all loans are in sequences of 10 or more loans; 62% are in sequences of seven or more loans. Because the duration of payday loans are typically determined by the borrower's pay frequency, borrowers that are paid bi-weekly typically take out shorter loans than borrowers that are paid monthly (or who receive benefits on a monthly basis). Consumer paid bi-weekly, therefore, could potentially take out many more loans over the course of 11 months than could borrowers who are paid monthly. The dataset contains information on the source and frequency of the income that a consumer reported to the lender when applying for a loan. To further explore the duration of loan sequences, we separately analyze borrowers with different pay frequencies. Figure 4 shows the distribution of sequence lengths, and whether those sequences ended in default, separately for borrowers who are paid weekly, bi-weekly, or twice a month, and borrowers who are paid monthly. In our sample, 14% of borrowers are paid weekly, 47% are paid bi-weekly, 9% are paid twice a month, and 3o% are paid monthly. 12 CFPB DATA POINT: PAYDAY LENDING 1 FIGURE 4: DURATION OF PAYDAY LOAN SEQUENCES BY BORROWER PAY FREQUENCY PANEL A: BORROWERS PAID WEEKLY, BI -WEEKLY, AND TWICE PER MONTH 0 v a) 0 — cs aD as 0 0 —I — C U CL L — 0 i....._____ ___ 1 2 3 4 5 6 7 8 9 1011 12 13 1415 16 1718 19 20 21 22 2324+ Number of Loans in Sequence PANEL B: BORROWERS PAID MONTHLY 0 rh — co 0) 0 0 N C`) ri 00 (0 0 J N — 0 a)0— ar 0 1 2 3 4 5 6 7 8 9 10 11+ Number of Loans in Sequence 13 CFPB DATA POINT: PAYDAY LENDING Panel A of Figure 4 shows the distribution of loan sequence length for borrowers that are paid more frequently than monthly. For these borrowers, 38% of new sequences end with the initial loan being repaid; on 5% of new sequences the borrower defaults on the initial loan. The majority of loan sequences to these borrowers end after a single renewal, but 12% of loan sequences span 11 or more loans. Panel B of Figure 4 shows loan sequence lengths for borrowers who are paid monthly or receive monthly benefits. The majority of these borrowers, 58%, receive monthly government benefits, including Supplemental Security Income (SSI) and Social Security Disability or Retirement benefits. Panel B shows a lower rate of successful initial repayment; only 3o% of initial loans are repaid without renewal and these borrowers default on 4% of initial loans. There is not the same long tail of sequences with a very high number of loans to these borrowers, as there is not time in an 11 month period for borrowers who are paid monthly to take out that many loans, but i6% of these sequences last for 11 or more loans. Figure 5 shows the distribution of loans by sequence length for borrowers that are paid more frequently than monthly (Panel A) and for borrowers who are paid monthly or receive monthly benefits (Panel B). The large portion of loans accounted for by long sequences is particularly important because the number of loans is proportional to the amount of fees incurred by borrowers, and by definition, also the fee revenues earned by lenders. Panel B, which shows results for monthly borrowers, is particularly striking. It shows that over 4o% of all loans to these borrowers were in sequences that, once begun, persisted for the rest of the year for which data were available. 14 CFPB DATA POINT: PAYDAY LENDING FIGURE 5: SHARE OF PAYDAY LOANS ORIGINATED IN PAYDAY LOAN SEQUENCES OF DIFFERENT LENGTHS PANEL A: BORROWERS PAID WEEKLY, BI -WEEKLY, AND TWICE PER MONTH 0 1 1 2 3 4 5 6 7 8 9 1011 12 13 1415 16 1718 19 20 21 22 2324+ Number of Loans in Sequence PANEL B: BORROWERS PAID MONTHLY I I Iwr.■W 2 3 4 5 6 7 8 9 10 11+ Number of Loans in Sequence Repaid Defaulted 15 CFPB DATA POINT: PAYDAY LENDING 3.3 Loan size and amortization One way borrowers could mitigate the expense of a sequence of payday loans would be to reduce the principal amounts over time. On the other hand, some borrowers may take out larger and larger loans over time, either to cover the fees associated with the loans or to cover additional needs.9 To find the frequency with which each of these phenomena occurs, we analyzed loan size over the course of loan sequences. Figure 6 shows the distribution of loan sequences by whether the principal increases, stays the same, or decreases between the first and last loan of the sequence, separately by borrower pay frequency. It shows that most borrowers do not self -amortize their payday loans. For both non - monthly (panel A) and monthly (panel B) borrowers, over 8o% (47%/57% and 59%/63%, respectively) of loan sequences that last more than one loan have either no change or an increase in loan amount. Figure 7 shows these proportions for loan sequences of different lengths, separately by borrower pay frequency and by whether the sequence ended in default. Each bar in this figure shows the proportion of loan sequences of that length that had an increase, no change, or a decrease in the amount of the loan between the first and last loan of the sequence. The figure shows two key patterns. Longer loan sequences and loan sequences that end in default are both more likely to have larger final loans than initial loans. Further analysis indicates that the share of loans that show a reduction in the amount borrowed is fairly constant throughout a sequence. Increases in loan amounts, on the other hand, are more likely to occur early in a loan sequence. For example, each bar in Figure 8 shows loan amount changes, if any, for subsequent loans over the course of sequences that are seven loans long. This pattern suggests that increases in loan amount do not seem to be caused by snowballing loan amounts across the sequence. It may also reflect borrowers quickly reaching the maximum loan size allowable by law or permitted by the lender. Patterns of amortization within sequences of other lengths follow both of these consistent patterns, and are omitted for brevity. 9 The extent to which consumers may elect to decrease or increase principal amounts over the course of a sequence may be limited by state loan size restrictions and lenders' willingness to lend larger amounts. Some lenders may restrict new consumers to loan amounts below the maximum allowable by state law, and then permit increases after consumers demonstrate successful payment. 16 CFPB DATA POINT: PAYDAY LENDING FIGURE 6: SHARE OF PAYDAY LOAN SEQUENCES BY CHANGE IN LOAN AMOUNT BETWEEN FIRST AND LAST LOAN PANEL A: BORROWERS PAID WEEKLY, BI -WEEKLY, AND TWICE PER MONTH Single -Loan Sequence Increase Unchanged Change in Loan Amount PANEL B: BORROWERS PAID MONTHLY Decrease 0 0 - J RI 4 47 C3 Single -Loan Sequence Increase Unchanged Change in Loan Amount 17 CFPB DATA POINT: PAYDAY LENDING Decrease FIGURE 7: SHARE OF PAYDAY LOAN SEQUENCES BY CHANGE IN LOAN AMOUNT BETWEEN FIRST AND LAST LOAN, BY SEQUENCE LENGTH PANEL A: BORROWERS PAID WEEKLY, BI -WEEKLY, AND TWICE PER MONTH - 1 3 5 7 9 11 13 15+ 2 4 6 8 10 12 14 2 4 6 8 10 12 14 1 3 5 7 9 11 13 15+ Repaid Defaulted Number of Loans in Sequence Principal Change Over Sequence Single -Loan Sequence Decrease Unchanged Increase PANEL B: BORROWERS PAID MONTHLY 1 2 3 4 5 6 7 8 910+ Repaid Number of Loans in Sequence 1 2 3 4 5 6 7 8 910+ Defaulted Principal Change Over Sequence Single -Loan Sequence Decrease Unchanged Increase 18 CFPB DATA POINT: PAYDAY LENDING FIGURE 8: SHARE OF PAYDAY LOANS WITH CHANGE IN LOAN AMOUNT FROM PRIOR LOAN IN SEQUENCE FOR SEVEN -LOAN SEQUENCES PANEL A: BORROWERS PAID WEEKLY, BI -WEEKLY, AND TWICE PER MONTH 0 0- - 1 2 3 4 5 6 Repaid 7 1 2 3 4 5 6 7 Defaulted Drder of Loan Within Sequence Principal Change on Successive Loans 1 Initial Decrease Same II Increase PANEL B: BORROWERS PAID MONTHLY 0 o- 0 (0a 0 J 0 .- CO - 0 (130 U - 0) 0 o_ N o 1 2 3 4 5 6 7 Repaid 1 2 3 4 5 6 Defaulted Drder of Loan Within Sequence Principal Change on Successive Loans Initial Decrease Same II II Increase 19 CFPB DATA POINT: PAYDAY LENDING 7 Annual loan usage In the previous section, we described sequences of payday loans following a new loan. The experiences of payday loan borrowers depend not only on what happens with individual loan sequences, but patterns of borrowing across multiple sequences. In this section we measure the number of loan sequences and loans borrowers have in a year.1° We also look at the extent to which borrowers repay all of their loans without renewing, versus renew or default on some loans. There are a number of different ways to define the set of consumers whose annual usage we might measure. The approach taken in the White Paper was to measure the usage of borrowers who took out loans in the first month of the data period. This provides the longest possible window for measuring usage and, given the short duration of most loans, is similar to measuring the usage of borrowers in a lender's portfolio at a point in time. As noted in the White Paper, using this approach will lead to a higher proportion of heavy users of payday loans, as compared to other approaches. Another approach is to attempt to determine which loans were made to new payday borrowers who took out a loan early in the time period, and measure subsequent borrowing by those consumers. This also allows for a relatively long time window for measuring usage, but limits the analysis by excluding the majority of payday borrowers in the data. This approach also leads to a lower proportion of heavy users of payday loans than other methods, since all borrowers with continuous usage in a year are excluded. A third approach is to measure the usage of any borrower who took out a loan during the sample period. This approach is the most inclusive across borrowers, but borrowers who take out their first loan late in the period can only be observed for a limited time. 10 To the extent borrowers take out loans from multiple payday lenders, the results in this section will understate total borrowing. 20 CFPB DATA POINT: PAYDAY LENDING Here we provide results for the "new borrowers" approach, and we show results for the "White Paper" approach and the "all borrowers" approach in an appendix. New borrowers are defined as borrowers who took out a loan in the second month of the data period and did not take out a loan in the first month.11 Given the limitations of the data we cannot ensure that these borrowers are new to payday borrowing, but can ensure that they are not in the midst of an ongoing loan sequence with the lender making the "new loan" that we observe. The findings are generally similar across the approaches, except with regard to the number of loans borrowers take out over the year. The "White Paper" approach includes more borrowers who are in long sequences, and therefore the median number of loans, 11, is higher than for the other two approaches. The "new borrower" approach, which tends to exclude borrowers in very long sequences, leads to a median number of loans of six over an ii -month period; the "all borrowers" approach gives a median number of six loans over a year, which includes borrowers who enter the data late in the time period. "As in the definition of new sequences, the exact timing of the "first month" and "second month" is adjusted forward by a day if the first month of a lender's data period does not include a day on which SSI benefits were disbursed. This is done to ensure that SSI recipients who borrowed in the second month were not repaying a prior loan on the same day. 21 CFPB DATA POINT: PAYDAY LENDING 4.1 Numbers of sequences and loans Figure 9 shows the distribution of the number of loan sequences new borrowers have over an 11 - month period. It shows that nearly half of borrowers (48%) have a single loan sequence, and roughly three-quarters (74%) have no more than two sequences. This analysis shows that relatively few payday borrowers have multiple periods of borrowing separated by periods without borrowing within a given year. FIGURE 9: NUMBER OF PAYDAY LOAN SEQUENCES DURING 11 MONTH PERIOD 0 48 15 7 2 3 4 Loan Sequences During 11 Month Period 22 CFPB DATA POINT: PAYDAY LENDING 4 5+ Figure io shows the distribution of the number of loans new borrowers take out over the 11 - month period. It shows that 15% of these borrowers had only one loan during this time. The median number of loans per 11 months for this sample is six. FIGURE 10: NUMBER OF PAYDAY LOANS DURING 11 MONTH PERIOD 4 1 2 3 4 5 6 7 8 9 16 11 12 13 14 15 16 17 18 19 20 21 22 2324+ Loans During 11 Month Period As discussed above, loan length depends on pay frequency, so people who are paid more frequently can potentially take out more loans over a period of time. Figure 11 presents results split by pay frequency. Panel B shows that a substantial portion of monthly borrowers took out a payday loan in each of the 11 months; 22% of these borrowers averaged one or more loans per pay period following their initial loan. The majority of these borrowers, 58%, receive monthly government benefits, including SSI and Social Security Disability or Retirement benefits. 23 CFPB DATA POINT: PAYDAY LENDING I FIGURE 11: NUMBER OF PAYDAY LOANS DURING 11 MONTH PERIOD PANEL A: BORROWERS PAID WEEKLY, BI -WEEKLY, AND TWICE PER MONTH L) - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2324+ Loans During 11 Month Period PANEL B: BORROWERS PAID MONTHLY LC) - C3 i i i 1 1 2 3 4 5 6 7 8 9 10 11+ Loans During 11 Month Period 24 CFPB DATA POINT: PAYDAY LENDING 4.2 Repayers, renewers, defaulters In order to further characterize loan usage over the course of a year, we categorize borrowers based on their default and renewal behavior. We place consumers into one of three mutually exclusive and exhaustive categories: defaulter, renewer, and repayer. A defaulter is a borrower who defaults on any loan during the year. A renewer is a borrower who did not default and who renewed at least one loan within a period of 14 days after repaying a prior loan. A repayer is a borrower who neither defaulted nor renewed at any point during the year. A repayer could have taken out more than one loan over the observation period but in each case would have repaid the loan without re -borrowing within 14 days after repaying the loan. There are some mechanical relationships between borrower categories and total loan usage. Borrowers who default may not be able to borrow again from the same lender, leading to lower observed usage levels. Consumers who take out many new loans over the course of the year (i.e., loans taken out more than 14 days subsequent to repayment of the last one) have more opportunities to renew a loan than borrowers who only take out a single new loan. Nonetheless, quantifying the relative shares of each group among the overall consumer population and the usage patterns of these groups may provide some meaningful insights. 25 CFPB DATA POINT: PAYDAY LENDING FIGURE 12: SHARE OF BORROWERS THAT REPAY, RENEW, OR DEFAULT ON THEIR PAYDAY LOANS DURING AN 11 MONTH PERIOD 0 cc, 15 Repayer 64 Renewer Borrower Type 20 Defaulter Figure 12 shows the distribution of new borrowers across these three categories. It shows that the majority (64%) of new borrowers become renewers. Similar proportions of new borrowers are categorized as defaulters (2o%) and repayers (15%). Figure 13 shows the number of loan sequences per new borrower. It shows that compared with repayers and renewers, defaulters are more likely to have just a single sequence. As noted above, defaulting may preclude a customer from borrowing from that lender again, so it is unsurprising that many defaulters have only a single sequence. Repayers also tend to be low -intensity users; 6i% took out only one loan during the time period. This is another manifestation of one of the findings in the prior section: it is unusual for borrowers to take out a payday loan at multiple times during a year separated by periods without borrowing. Most renewers experience only 1-3 sequences during the ii -month time period; 36% have only one sequence, 3o% have two, 19% have three and only 15% have four or more sequences. 26 CFPB DATA POINT: PAYDAY LENDING FIGURE 13: NUMBER OF PAYDAY LOAN SEQUENCES DURING 11 MONTH PERIOD FOR REPAYERS, RENEWERS, AND DEFAULTERS 0 CO 1 1 2 3 4 Loan Sequences During 11 Month Period 5+ Figure 14 shows the distribution of loans per consumer for repayers, renewers, and defaulters during an ii -month period. By definition, the distribution of the number of loans for repayers is the same as the distribution of the loan sequences. The three consumer types display strikingly different usage intensities. Defaulters are concentrated at lower intensities, with 27% defaulting on the first loan they took out. Substantial numbers of borrowers, however, took out a relatively large number of loans before defaulting. Renewers display a wide range of usage intensities. The number of loans is fairly evenly distributed in the range between 2 and 12 loans, and reflects a combination of biweekly consumers who are able to take up to 24 loans, and monthly borrowers who typically take at most 11 loans in an ii -month period. 27 CFPB DATA POINT: PAYDAY LENDING FIGURE 14: NUMBER OF PAYDAY LOANS DURING 11 MONTH PERIOD FOR REPAYERS, RENEWERS, AND DEFAULTERS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2324+ Loans During 11 Month Period Taken together, the results from this section suggest that while there is a very wide variation in the number of loans that payday borrowers take out over the course of a year, this is related to differences in whether the borrowers repay versus renew those loans and how many loans they take out before repaying without re -borrowing. In other words, the differences in the number of loans come primarily from differences in the length of sequences, not the number of sequences. 28 CFPB DATA POINT: PAYDAY LENDING APPENDIX A: DISCUSSION AND ANALYSIS OF ANNUAL LOAN USAGE USING ALTERNATE SAMPLING METHODS In this appendix we describe the effects of alternate sampling methods on the results discussed in Section 4 of the text. The approach used in Section 4 of the text is to measure the borrowing behavior of "new" borrowers, those who took out a loan in the second month of the dataset and did not have a prior loan in the dataset. In this appendix we present a subset of the results from Section 4 using two alternative approaches. The "all borrowers" approach includes all borrowers with at least one loan in the sample period, with the exception of borrowers whose first loan is made in the last month of the sample period (we cannot determine whether these borrowers repaid, renewed, or defaulted on their loan). The "White Paper" method tracks 12 -month usage for consumers who have a loan in the first month of a lender's 12 -month window.12 Figure A.1 shows the distribution of the number of loan sequences for the two alternative approaches. It shows that for both of the methods described above as well as the "new borrower" methodology portrayed in Figure 9, the distribution of the number of sequences is very similar, with slightly more borrowers in the "all borrower" sample having only a single loan sequence during the year. This at least partially reflects that the "all borrower" approach permits borrowers to enter the sample later in the year, when there is less time for multiple loan sequences. 12 Note that these results do not exactly replicate the results of the White Paper, since we use a different sample of lenders, those for which we have the information that we use to analyze defaults. 29 CFPB DATA POINT: PAYDAY LENDING FIGURE Al: NUMBER OF PAYDAY LOAN SEQUENCES PER YEAR PANEL A: "ALL BORROWERS" cD 0 fU a 60 1 23 10 4 2 3 4 Number of Loan Sequences per Year PANEL B: "WHITE PAPER SAMPLE" 2 5+ d 50 1 28 2 13 ■ 3 4 5+ Number of Loan Sequences per Year 30 CFPB DATA POINT: PAYDAY LENDING Figure A.2 shows the distribution of the number of loans during the year for the two alternative approaches. It demonstrates the phenomena described in the text, that using the "new borrower" approach excludes many borrowers in longer sequences, or, alternatively, using the "White Paper" approach includes a larger number of borrowers who are relatively heavy users of payday loans, and likely in long sequences. The "all borrower" approach shows spikes in use at twelve loans and 24 or more loans, like the "White Paper" approach, but also shows a similar share to the "new borrower" approach of borrowers who only took out one loan. Figure A.3 shows the distribution of consumers across the "repayer," "renewer," and "defaulter" borrower types for the two alternative sampling approaches. Panel A shows that the distribution of borrowers across types is very similar between the "all borrower" sample and the "new borrowers" sample described in the text. Panel B shows the distribution using the "White Paper" method. The share of renewers in the "White Paper" sample is significantly higher than the other two approaches, reflecting the fact that the borrowers in a lenders portfolio at a point in time are disproportionately borrowers in long loan sequences. Overall, all three methods show that renewers represent the majority of all borrowers, with repayers and defaulters making up less than half of all borrowers for any sample. 31 CFPB DATA POINT: PAYDAY LENDING FIGURE A2: NUMBER OF PAYDAY LOANS PER YEAR PANEL A: "ALL BORROWERS" c, o ca m c a) 0 ai 1 1 1 1 1 1 1 1 1 1 1 1 1 2 3 4 5 6 7 8 9 1011 12 13 1415 16 1718 19 20 21 22 2324+ Number of Loans per Year PANEL B: "WHITE PAPER SAMPLE" a)cp 0 a) 0 as I 1 iv I I I I I I I I I 1 2 3 4 5 6 7 8 9 1011 12 13 1415 16 1718 19 20 21 22 2324+ Number of Loans per Year 32 CFPB DATA POINT: PAYDAY LENDING FIGURE A3: SHARE OF BORROWERS THAT REPAY, RENEW, OR DEFAULT ON THEIR PAYDAY LOANS DURING A YEAR PANEL A: "ALL BORROWERS" 13 Repayer PANEL B: "WHITE PAPER SAMPLE" CO 67 Renewer Borrower Type 21 Defaulter O _ N o 7 Repayer 77 Renewer Borrower Type 33 CFPB DATA POINT: PAYDAY LENDING 17 Defaulter AGENDA MEMORANDUM Future Item for the City Council Meeting of October 14, 2014 Action Item for the City Council Meeting of October 21, 2014 DATE: October 9, 2014 TO: Ronald L. Olson, City Manager FROM: Tom Tagliabue, Director, Intergovernmental Relations tomtag@cctexas.com 361.826.3850 RESOLUTION Adopting the City of Corpus Christi's State Legislative Agenda for the 84th Texas Legislature. CAPTION: Adopting the City of Corpus Christi's State Legislative Agenda for the 84th Texas Legislature. PURPOSE: The City Council regularly adopts a legislative agenda prior to a new state and federal legislative session convening. The resolution identifies the policy and appropriations priorities of the City Council for the 84th Regular Legislative Session, which will run from January 13, 2015, through June 1, 2015, in Austin. BACKGROUND AND FINDINGS: The City Council conducted a workshop on legislative issues on September 16, 2014, and made a number of suggested additions to the issues previously identified by City staff. City's Internal Timeline for 84th Regular Session September 16, 2014 — City Council Workshop on Legislative Priorities September 29 -October 3, 2014 - TML Annual Conference — Mayor Nelda Martinez becomes President of TML. TML approves legislative policy priorities. October 14, 2014 — Future Agenda — Legislative Priorities Presentation October 21, 2014 — Adoption — Legislative Priorities The schedule for the 84th Session was corrected to reflect the January 1, 2015, inauguration date for new statewide elected officials (See Table 1 below). TABLE 1 - 84th Legislature Schedule Monday, November 10, 2014 Pre -filing of legislation for the 84th Legislature begins Thursday, January 1, 2015 Attorney General, Comptroller, Land Commissioner, Agriculture Commissioner and Railroad Commissioner(s) sworn in Tuesday, January 13, 2015 84th Legislature convenes at noon Tuesday, January 20, 2015 Governor and Lieutenant Governor are sworn in Friday, March 13, 2015 Deadline for filing bills and joint resolutions other than local bills, emergency appropriations, and bills that have been declared an emergency by the governor Monday, June 1, 2015 Last day of 84th Regular Session; corrections only in house and senate Sunday, June 21, 2015 Last day governor can sign or veto bills passed during the regular legislative session Monday, August 31, 2015 Date that bills without specific effective dates (that could not be effective immediately) become law The City's General State Legislative Policy (see Table 2 below) is used to guide the City's contract lobbyists and the Intergovernmental Relations Department in evaluating state and federal legislative proposals not covered by the City's specific legislative policy initiatives. No changes have been made to this list previously approved by Council. TABLE 2. General State Legislative Polic The City SUPPORTS legislation and/or The City OPPOSES legislation and/or administrative actions that: administrative actions that: Protect and enhance City revenues. Undermine the principle of home rule and local control by the City. Reduces or eliminates costs to the City. Results in the loss of revenue or negatively impacts potential revenue growth to the City. Supports local control. Diminishes the authority of cities to regulate and manage their growth and development. Protects policies previously established by City leadership through the Charter, ordinances, resolutions, and master plans. Nullifies or undermines the City's policies contained in existing provisions of the Charter, ordinances, resolutions, and master plans, unless such changes expand the City's ability to manage its own affairs. Provides increased educational opportunities and job creation/retention for the citizens of Corpus Christi and the Coastal Bend region through the Port of Corpus Christi authority, public schools, community colleges and universities Imposes unfunded mandates that requires any expenditures by the City unless all costs are fully reimbursed by the mandating governmental entity. How the City Prioritizes State Legislative Policy Issues The City's IGR Department identified three levels of importance on state legislative issues, which the City Council selects for each of the state appropriations or policy recommendations. ✓ Priority — means the City will actively pursue and support/oppose the policy, including, if necessary, seeking introduction and passage of legislation. This would include purely local Corpus Christi bills, as well as very important legislation of statewide application. ✓ Actively Support/Oppose — means the City will aggressively attempt to influence passage/defeat of a measure if it is introduced by some other entity. ✓ Endorse — means the City will make its support or opposition known, but will not actively pursue the issue. Proposed State Legislative Agenda for 84th Texas Legislature in 2015 The City's legislative agenda for the upcoming 84th Regular Session of the Texas Legislature in 2015 includes the following: TABLE 3. City of Cornus Christi Legislative Agenda Category Policy Area Recommendation Priority Transportation Taxes Support the passage of new, long-term, sustainable funding sources for transportation infrastructure; and the dedication of existing revenue generated from taxes, fees, or receipts related to transportation to the maintenance, improvement and expansion of roads, rail and public transportation. Priority Provide cities and counties with additional local funding options and resources to address transportation needs that are not otherwise met by current funding sources or to offset any new transportation related costs or requirements by state or federal government. Examples could include gasoline tax, vehicle registration fee, an exemption of the sales tax cap, or other option. Priority Water Appropriations Appropriate adequate funding for the Fiscal Years 2016 - 2017 biennium for the State of Texas to partner with local project sponsors to implement one or more seawater desalination projects to provide uninterruptible water supply and have corresponding positive impacts for water supplies in adjacent regions which will strengthen Texas' economy and sustain economic prosperity. Priority Military Appropriations Appropriate $150 million in grant funding to Texas Military Preparedness Commission to assist defense communities with military value projects that enhance the installation's mission, improve operational efficiencies, and proactively address impacts from sequestration or other base realignment and closure activities that may happen in the future. Priority Appropriation Military Amend Chapter 436, Government Code, to increase the cap on project awards for the Defense Economic Adjustment Assistance Grant (DEAAG) program from $2 million to $5 million. Priority Tourism Taxes Secure for Corpus Christi and Port Aransas an equitable two percent (2%) portion of the state's Hotel Occupancy Tax for Gulf and Bay beach cleaning, maintenance and coastal erosion exactly as already provided to other barrier island municipalities. Priority Windstorm Insurance Windstorm insurance reform that restructures the governing board of the Texas Windstorm Insurance Association (TWIA) to put consumers on equal footing with insurance company members; creates incentives to promote voluntary coverage of windstorm and hail policies in the Texas seacoast; establishes a financial structure at TWIA that provides a stable, sustainable and affordable rate structure to be able to cover on an annual basis up to $4.3 billion in loss claims at TWIA, would cover a 1-in-100 year storm; requires member insurance companies pay allowable assessments sooner; establishes a small statewide catastrophic storm fund to pay for excess losses, and structures a more financially beneficial re-insurance program. Priority Utilities Water Amend Texas Utilities Code to allow municipalities to purchase energy wholesale from a co-generation facility to provide low-cost power for seawater desalination plant. Priority Municipal Authority Wind Farms Amend Chapter 212, Local Government Code, to empower municipalities to regulate development of wind farms within a municipality's extraterritorial jurisdiction (ETJ). Priority Municipal Authority Repeal the limitations in Chapter 2269, Government Code, on the number of design build civil works projects a governmental entity is allowed to undertake. Desk n Build Actively Support Transportation Appropriations Appropriate funding to TxDOT and include specific riders in the General Appropriations Act for TxDOT securing funding for the construction of passing lanes for SH 361 between Corpus Christi and Port Aransas and for improvements to the Port Aransas ferry system. Actively Support Tourism Appropriations Continue investing in Texas tourism promotion in the Governor's Office of Economic Development and Tourism Actively Support Tourism Public Maintain the existing public school start date, which is vitally important to the tourism economy of the Coastal Bend. Education Actively Support Water Amend statutes to eliminate impediments to development of water supply sources to meet the long- term needs of the State, whether it is through conservation, surface water, groundwater, aquifer storage and recovery, interbasin transfers, rainwater harvesting, or other strategies. Actively Support Transparency Local Government Taxes (a) Oppose the improper expansion of ballot language designed to create confusion at the ballot box for taxpayers; (b) Minimize superfluous calculations that serve no meaningful or comparative purpose; (c) Resist information requirements which expand reporting without meaningful benefit; (d) Create consistent requirements for all political subdivisions, including the State of Texas; and (e) Eliminate data reporting redundancies. Actively Support Appropriations Air Quality Texas Emission Reduction Program (TERP) — Free up $1 billion of previously collected TERP funds to improve air quality in near non -attainment areas instead of using those funds to certify the state budget. Actively Support Municipal Authority Amend Section 252.048 (c-1), Local Government Code , to increase in the administrative change order authority from $100,000 to 5% of the base contract value, not to exceed $500,000. Actively Support Natural Resources Water Change notice requirements for public oil and gas waste disposal permit applications in watersheds. Endorse Higher Education Appropriations Support appropriation requests by Texas A&M University -Corpus Christi for: (a) capital projects (Life Sciences Research and Engineering Building and Arts and Media Building) whether funded through tuition revenue bonds or other sources, (b) $11.5 million exceptional item funding for the Lone Star Unmanned Aircraft System Center for Excellence and Innovation for engineering/computing support staff and research fellows critical to the continuing research and development and operation of the program, including support of command and control center operations, range management and operation, and increased test site programming efforts; (c) $3 million exceptional item funding for expansion of engineering programs; and (d) $400,000 exceptional item funding for two staff positions and operational funding to support clients and the continued development of the Coastal Bend Innovation Center program. Endorse Higher Support appropriation/policy requests by Del Mar Education Appropriations College Endorse Public Education Ensure adequate resources (time, funding, Agency staffing levels, etc.) to support full implementation of House Bill 5 (83rd Session, 2013). It takes time to expand course offerings to students so that they can choose among an array of endorsements. School counselors and registrars need professional development to assure that students and parents are making fully informed academic choices and that transcripts are interpreted consistently across the state. State and education service center leadership are needed to deliver sustained professional development, particularly at the middle and high school levels, to assure that instructional rigor is sufficient for students to be academically successful. Endorse Taxes Natural Gas Allow the Corpus Christi Regional Transit Authority to sell compressed natural gas (CNG) to public (tax exempt) and private consumers (taxable) without losing its tax-exempt status. Endorse Texas Coalition for Affordable Power (TCAP) Protect City Original Jurisdiction — Oppose efforts to reduce or eliminate the original jurisdiction of cities in rate cases. Endorse Texas Coalition for Affordable Power (TCAP) Remove barriers to Utilizing Electric Transmission Right of Way for Municipally-Owned Hike and Bike Trails. Endorse Texas Coalition for Affordable Power (TCAP) Promote public-private partnerships to develop small scale generation projects. This would renew an effort from the last regular legislative session. Endorse Appropriations Texas Recreation and Parks Society (TRAPS) Maximize the use of revenues from the sporting goods sales tax and federal funds to increase funding for parks and recreation programs for both Local and State parks and that all Texas Recreation & Parks Account Local Park Grant Program (TRPA) and Urban Account funded park projects be subject to the established Texas Parks and Wildlife Department (TPWD) competitive scoring system. Endorse Appropriations Texas Recreation and Parks Society (TRAPS) Restore funding to the TRPA and Urban accounts at Texas Parks and Wildlife Department in the amount of at least $15.5 million per fiscal year ($31 million for biennium). Endorse Credit Access Business Regulation Support legislation to enhance state regulation of payday and auto title lending practices. Oppose legislation that preempts city regulations by ordinance. Endorse Workforce Support $3 million Exceptional Item request ($1.5M per fiscal year) by the Texas Workforce Commission to ALTERNATIVES: The Council can choose to: 1. Adopt the resolution. 2. Not adopt the resolution. 3. Make revisions to the resolution. OTHER CONSIDERATIONS: Additional legislative priority items may be presented to Council in the future as topics and circumstances warrant. CONFORMITY TO CITY POLICY: n/a EMERGENCY / NON -EMERGENCY: This is a non -emergency item. DEPARTMENTAL CLEARANCES: Deputy City Manager Assistant City Manager for General Government and Business Support Services Assistant City Manager for Public Works and Utilities City Attorney FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2014- 2015 Appropriations enhance its Apprenticeship program for high -demand, high skills jobs. Endorse Workforce Appropriations Support $10 million Exception Item request ($5M per FY) by the Texas Workforce Commission for intensive and rapid response recruitment of high skills jobs for companies expanding in or relocating to Texas. Endorse Workforce Appropriations Support $20 million Exceptional Item request ($10M per FY) by the Texas Workforce Commission for the Accelerate Texas program to align high demand occupational skill training with literacy and numeracy training. ALTERNATIVES: The Council can choose to: 1. Adopt the resolution. 2. Not adopt the resolution. 3. Make revisions to the resolution. OTHER CONSIDERATIONS: Additional legislative priority items may be presented to Council in the future as topics and circumstances warrant. CONFORMITY TO CITY POLICY: n/a EMERGENCY / NON -EMERGENCY: This is a non -emergency item. DEPARTMENTAL CLEARANCES: Deputy City Manager Assistant City Manager for General Government and Business Support Services Assistant City Manager for Public Works and Utilities City Attorney FINANCIAL IMPACT: ❑ Operating ❑ Revenue ❑ Capital X Not applicable Fiscal Year: 2014- 2015 Project to Date Expenditures (CIP only) Current Year Future Year FY 15 TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Comments: None RECOMMENDATION: Staff recommends adoption of the resolution. LIST OF SUPPORTING DOCUMENTS: 1. Presentation 2. Resolution RESOLUTION Adopting the City of Corpus Christi's State Legislative Agenda for the 84th Texas Legislature. WHEREAS, the 84th Regular Session of the Texas Legislature convenes on January 13, 2015; WHEREAS, Every session, thousands of bills are filed and many have the potential to either directly or indirectly impact the City of Corpus Christi (City), its programs and services, its citizens, the tax base, and community needs; and WHEREAS, The City's Intergovernmental Relations (IGR) Department is responsible for monitoring state and federal governmental activities, developing legislative priorities approved by City Council, managing the City's legislative consultants at Focused Advocacy, and coordinating legislative activities with other public and private sector entities and municipal advocacy organizations; and WHEREAS, it is necessary to provide guidance for the City's officers and representatives in conducting the City's legislative efforts and relations; and WHEREAS, to be successful, this ever -evolving business environment requires close contact and constant communication with legislative leadership, external legislative consultants, municipal advocacy organizations, statewide municipal partners, community leadership, and community stakeholders. Now, therefore, be it resolved by the City Council of the City of Corpus Christi, Texas: SECTION 1. The City Council generally supports bills that: • Protects & enhances City revenues. • Reduces or eliminates costs to the City. • Supports local control. • Protects policies previously established by City leadership through the Charter, Ordinances, Resolutions or Master Plans. • Provides increased educational opportunities for the citizens of Corpus Christi and the Coastal Bend region by supporting its public schools, community colleges and universities. SECTION 2. The City Council generally opposes bills that: • Undermines the principles of Home Rule and Local Control. • Results in the loss of revenue or negatively impacts potential revenue growth. • Diminishes the authority of cities to regulate and manage their growth and development. • Nullifies or undermines the City's policies contained in existing provisions of the Charter, Ordinances, Resolutions and Master Plans - unless such changes expand the City's ability to manage its own affairs. • Imposes unfunded mandates that requires any expenditures by the City unless all costs are full reimbursed by the mandating governmental entity. Page 1 of 6 SECTION 3. The City Council adopts the following priorities as its agenda for the 84th Texas Legislature. Priority 1. Support the passage of new, long-term, sustainable funding sources for transportation infrastructure; and the dedication of existing revenue generated from taxes, fees, or receipts related to transportation to the maintenance, improvement and expansion of roads, rail and public transportation. 2. Provide cities and counties with additional local funding options and resources to address transportation needs that are not otherwise met by current funding sources or to offset any new transportation related costs or requirements by state or federal government. Examples could include gasoline tax, vehicle registration fee, an exemption of the sales tax cap, or other option. 3. Appropriate adequate funding for the Fiscal Years 2016-2017 biennium for the State of Texas to partner with local project sponsors to implement one or more seawater desalination projects to provide uninterruptible water supply and have corresponding positive impacts for water supplies in adjacent regions which will strengthen Texas' economy and sustain economic prosperity. 4. Appropriate $150 million in grant funding to Texas Military Preparedness Commission to assist defense communities with military value projects that enhance the installation's mission, improve operational efficiencies, and proactively address impacts from sequestration or other base realignment and closure activities that may happen in the future. 5. Amend Chapter 436, Government Code, to increase the cap on project awards for the Defense Economic Adjustment Assistance Grant (DEAAG) program from $2 million to $5 million. 6. Secure for Corpus Christi and Port Aransas an equitable two percent (2%) portion of the state's Hotel Occupancy Tax for Gulf and Bay beach cleaning, maintenance and coastal erosion exactly as already provided to other barrier island municipalities. 7. Windstorm insurance reform that restructures the governing board of the Texas Windstorm Insurance Association (TWIA) to put consumers on equal footing with insurance company members; creates incentives to promote voluntary coverage of windstorm and hail policies in the Texas seacoast; establishes a financial structure at TWIA that provides a stable, sustainable and affordable rate structure to be able to cover on an annual basis up to $4.3 billion in loss claims at TWIA, would cover a 1 -in -100 year storm; requires member insurance companies pay allowable assessments sooner; establishes a small statewide catastrophic storm fund to pay for excess losses, and structures a more financially beneficial re -insurance program. Page 2 of 6 8. Amend Texas Utilities Code to allow municipalities to purchase energy wholesale from a co -generation facility to provide low-cost power for seawater desalination plant. 9. Amend Chapter 212, Local Government Code, to empower municipalities to regulate development of wind farms within a municipality's extraterritorial jurisdiction (ETJ). 10. Repeal the limitations in Chapter 2269, Government Code, on the number of design build civil works projects a governmental entity is allowed to undertake. Actively Support 1. Appropriate funding to TxDOT and include specific riders in the General Appropriations Act for TxDOT securing funding for the construction of passing lanes for SH 361 between Corpus Christi and Port Aransas and for improvements to the Port Aransas ferry system. 2. Continue investing in Texas tourism promotion in the Governor's Office of Economic Development and Tourism 3. Maintain the existing public school start date, which is vitally important to the tourism economy of the Coastal Bend. 4. Amend statutes to eliminate impediments to development of water supply sources to meet the long-term needs of the State, whether it is through conservation, surface water, groundwater, aquifer storage and recovery, interbasin transfers, rainwater harvesting, or other strategies. (a) Oppose the improper expansion of ballot language designed to create confusion at the ballot box for taxpayers; (b) Minimize superfluous calculations that serve no meaningful or comparative purpose; (c) Resist information requirements which expand reporting without meaningful benefit; (d) Create consistent requirements for all political subdivisions, including the State of Texas; and (e) Eliminate data reporting redundancies. 4. Texas Emission Reduction Program (TERP) — Free up $1 billion of previously collected TERP funds to improve air quality in near non -attainment areas instead of using those funds to certify the state budget. 5. Amend Section 252.048 (c-1), Local Government Code, to increase in the administrative change order authority from $100,000 to 5% of the base contract value, not to exceed $500,000. 6. Change notice requirements for public oil and gas waste disposal permit applications in watersheds. Page 3 of 6 Endorse 1. Support appropriation requests by Texas A&M University -Corpus Christi for: (a) capital projects (Life Sciences Research and Engineering Building and Arts and Media Building) whether funded through tuition revenue bonds or other sources, (b) $11.5 million exceptional item funding for the Lone Star Unmanned Aircraft System Center for Excellence and Innovation for engineering/computing support staff and research fellows critical to the continuing research and development and operation of the program, including support of command and control center operations, range management and operation, and increased test site programming efforts; (c) $3 million exceptional item funding for expansion of engineering programs; and (d) $400,000 exceptional item funding for two staff positions and operational funding to support clients and the continued development of the Coastal Bend Innovation Center program. 2. Support appropriation/policy requests by Del Mar College 3. Ensure adequate resources (time, funding, Agency staffing levels, etc.) to support full implementation of House Bill 5 (83rd Session, 2013). It takes time to expand course offerings to students so that they can choose among an array of endorsements. School counselors and registrars need professional development to assure that students and parents are making fully informed academic choices and that transcripts are interpreted consistently across the state. State and education service center leadership are needed to deliver sustained professional development, particularly at the middle and high school levels, to assure that instructional rigor is sufficient for students to be academically successful. 4. Allow the Corpus Christi Regional Transit Authority to sell compressed natural gas (CNG) to public (tax exempt) and private consumers (taxable) without losing its tax-exempt status. 5. Protect City Original Jurisdiction — Oppose efforts to reduce or eliminate the original jurisdiction of cities in rate cases. 6 Remove barriers to Utilizing Electric Transmission Right of Way for Municipally -Owned Hike and Bike Trails. 7. Promote public-private partnerships to develop small scale generation projects. This would renew an effort from the last regular legislative session. 8. Maximize the use of revenues from the sporting goods sales tax and federal funds to increase funding for parks and recreation programs for both Local and State parks and that all Texas Recreation & Parks Account Local Park Grant Program (TRPA) and Urban Account funded park projects be subject to the established Texas Parks and Wildlife Department (TPWD) competitive scoring system. Page 4 of 6 9. Restore funding to the TRPA and Urban accounts at Texas Parks and Wildlife Department in the amount of at least $15.5 million per fiscal year ($31 million for biennium). 10. Support legislation to enhance state regulation of payday and auto title lending practices. Oppose legislation that preempts city regulations by ordinance. 11. Support $3 million Exceptional Item request ($1.5M per fiscal year) by the Texas Workforce Commission to enhance its Apprenticeship program for high -demand, high skills jobs. 12. Support $10 million Exception Item request ($5M per FY) by the Texas Workforce Commission for intensive and rapid response recruitment of high skills jobs for companies expanding in or relocating to Texas. 13. Support $20 million Exceptional Item request ($10M per FY) by the Texas Workforce Commission for the Accelerate Texas program to align high demand occupational skill training with literacy and numeracy training. Priority SECTION 4. The Legislative Agenda remain in effect until amended by the City Council. SECTION 5. The IGR Director is directed to distribute the City's Legislative Agenda to the local legislative delegation, legislative leadership, external legislative consultants, municipal advocacy organizations, statewide municipal partners, community leadership, and community stakeholders to solicit their advice, support, and active engagement in the legislative process. This resolution takes effect upon City Council approval on this the day of , 2014. ATTEST: THE CITY OF CORPUS CHRISTI Rebecca Huerta Nelda Martinez City Secretary Mayor Corpus Christi, Texas Corpus Christi, Texas The above resolution was passed by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb Page 5 of 6 Chad Magill Colleen McIntyre Lillian Riojas Mark Scott Page6of6 City of Corpus Christi Legislative Agenda 84t" Regular Session Future Agenda est' October 14, 2014 Workshop Comments & Additional Staff Recommendations Support of Del Mar College, Workforce Solutions, & other local government recommendations. Support for enhanced state regulation of payday & auto title lenders. Recommendation on transparency for bond ballot language. Eliminate the limitations on the number of design build civil works projects a governmental entity is allowed to do. Recommendations from Texas Recreation And Parks Society (TRAPS) & Texas Coalition for Affordable Power (TCAP). Levels of Importance Priority — means the City will actively pursue and support/oppose the policy, including, if necessary, seeking introduction and passage of legislation. This would include purely local Corpus Christi bills, as well as very important legislation of statewide application. Actively Support/Oppose — means the City will aggressively attempt to influence passage/defeat of a measure if it is introduced by some other entity. Endorse — means the City will make its support or opposition known, but will not actively pursue the issue. PRIORITIES New, Tong -term, sustainable funding sources for transportation & the full dedication of existing revenues. Statewide local -option transportation funding strategy. State grant funding for seawater desalination project. State grant funding for military value projects. Increase DEAAG program limits from $2M to $5M. PRIORITIES 2% share of state HOT funds for beach cleaning & erosion response projects in Corpus Christi & Port Aransas. Windstorm Insurance (a) funding structure, (b) board make up & (3) incentives for voluntary market. Wholesale purchase of energy for seawater desalination. Municipal regulation of wind farms in ETJ. NEW Remove limits on the number of design -build projects. ENDORSE Funding for TxDOT for passing lanes for SH 361 and for improvements to the ferry system. Continue investing in Texas tourism promotion in the Governor's Office of Economic Development and Tourism. Oppose changes to the school start date. NEW Support full implementation of HB 5 (83rd Session, 2013) on public school accountability & assessment (CCISD) NEW Allow RTA to sell CNG to public & private consumers without losing tax -exemption (CCRTA). ENDORSE NEW Protect original jurisdiction for cities in electric rate cases (TCAP) . NEW Remove barriers to utilizing ROWs for city -owned hike & bike trails (TCAP). NEW Promote public-private partnerships to develop small- scale generation projects (TCAP). NEW Maximize use of sporting goods tax to increase funding for local parks grants (TRAPS). ENDORSE NEW Restore funding for TP&WD funding of at least $31 M for biennium (TRAPS). NEW Support enhanced state regulation of payday & auto title lenders. NEW Support Workforce Commission exceptional item requests: (a) $3M for Apprenticeship program; (b) $10M for Recruitment Texas (recruit skilled workers for expanding businesses; (c) $20M for Accelerate Texas (job skills & literacy). Questions/Discussion