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Agenda Packet City Council - 07/23/2019
City Council City of Corpus Christi Meeting Agenda - Final 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Council Chambers11:30 AMTuesday, July 23, 2019 Addendums may be added on Friday. 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. CITIZEN COMMENTS WILL BE LIMITED TO THREE MINUTES. 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. Any electronic media (e.g. CD, DVD, flash drive) that the Public would like to use while they speak to the City Council MUST be submitted a minimum of 24 hours prior to the meeting. Please contact the Public Communications department at 361-826-3211 to coordinate. A.Mayor Joe McComb to call the meeting to order. B.Invocation to be given by Pastor David Kelly, Trinity Worship. C.Pledge of Allegiance to the Flag of the United States and to the Texas Flag to be led by Kristy Glick, Management Assistant, Development Services. D.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. E.Proclamations / Commendations 1.19-0960 Proclamation declaring July 2019, "Watch Your Car Month". Proclamation declaring July 21-27, 2019, "Feria De Las Flores Week" and July 27, 2019, "Feria De Las Flores Day". Commendation for Captain Philip M. Brock, United States Navy. Swearing-In Ceremony for Newly Appointed Board, Commission, Committee and Corporation Members. F.CITY MANAGER’S COMMENTS / UPDATE ON CITY OPERATIONS: a.OTHER Page 1 City of Corpus Christi Printed on 7/23/2019 July 23, 2019City Council Meeting Agenda - Final G.MINUTES: (NONE) H.BOARD & COMMITTEE APPOINTMENTS: (NONE) I.EXPLANATION OF COUNCIL ACTION: J.PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. 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 choose to speak during this public comment period regarding an item on the agenda, you may do so. You will not be allowed to speak again, however, when the Council is considering the item. Citizen comments are limited to three minutes. If you have a petition or other information pertaining to your subject, please present it to the City Secretary. Any electronic media (e.g. CD, DVD, flash drive) that the Public would like to use while they speak MUST be submitted a minimum of 24 hours prior to the Meeting. Please contact the Communication department at 361-826-3211 to coordinate. All items on this agenda are considered public hearings. 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. K.CONSENT AGENDA: (ITEMS 2 - 13) 2.19-0933 Ordinance adopting the fiscal year (FY) 2019-2020 Consolidated Annual Action Plan (CAAP) for the Community Development Block Grant (CDBG) budget in the amount of $2,650,562.00, the Emergency Solutions Grant (ESG) budget in the amount of $225,067.00, and the HOME Investment Partnerships (HOME) budget in the amount of $1,055,648.00 for a total of $3,931,277.00 of entitlement funding from the United States Department of Housing and Urban Development (HUD) and authorizing the City Manager or designee to execute all documents necessary to submit the CAAP, Page 2 City of Corpus Christi Printed on 7/23/2019 July 23, 2019City Council Meeting Agenda - Final authorizing a staff complement of 27 positions; accept and appropriate funding for the approved CAAP projects and further execute funding agreements, amendments or other documents necessary to implement the FY2019-2020 CAAP with organizations for approved projects. Sponsors:Housing and Community Development 3.19-0613 Ordinance amending the Urban Transportation Plan map of MobilityCC, a transportation element of the City’s Comprehensive Plan, for streets proposed in the London area between SH 286 and FM 763 and between the Oso Creek and FM 43; and amending MobilityCC by adding a HikeBikeCC map for the West Oso Creek Wilderness Trail. Sponsors:Planning and Environmental/Strategic Initiatives 4.19-0881 Ordinance disannexing approximately 662.51 acres located along Texas State Highway 361 and areas south of State Highway 361 from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly and affirming annexations and boundaries; providing for severance, publication, and an effective date. Sponsors:Planning and Environmental/Strategic Initiatives 5.19-0935 Ordinance authorizing the establishment of Industrial District No. 8 within the Extraterritorial Jurisdiction of the City of Corpus Christi, Texas; and authorizing Industrial District Agreement with property owners within the Industrial District. Sponsors:Planning and Environmental/Strategic Initiatives 6.19-0939 Ordinance approving the amendment to the Tax Increment Reinvestment Zone #2 Amended Project & Financing Plans approved by the Board of Directors of Reinvestment Zone Number Two, Corpus Christi, Texas, on June 10, 2019. Sponsors:Business Liaison 7.19-0798 Ordinance authorizing an agreement with Nueces County Victims’ Memorial Garden for donation and acceptance of Memorial Garden to be placed at Cole Park. Sponsors:Parks and Recreation Department 8.19-0597 Motion awarding a contract to Mako Contracting, LLC in the amount of $603,463.91 for construction associated with Tennis Center Repairs and Upgrades, including removing and replacing three (3) existing tennis courts at the HEB Tennis Center funded by the 2012 Park Bond Program. Sponsors:Engineering Services and Parks and Recreation Department 9.19-0950 Motion authorizing the lease purchase of heavy equipment consisting of two mini excavators and three backhoes for excavations during installation of gas taps and service lines by Gas Operations from Doggett Heavy Machinery of Corpus Christi, Texas, for a total amount not to exceed $542,760.32 funded through the Gas Fund. Page 3 City of Corpus Christi Printed on 7/23/2019 July 23, 2019City Council Meeting Agenda - Final Sponsors:Gas Department and Contracts and Procurement 10.19-0884 Motion authorizing a two-year supply agreement for gas meters, that will be used for new services and replacement of models no longer supported, with Wilnat, Inc., dba Koons Gas Measurement of Tulsa, Oklahoma for the total amount not to exceed $974,035.00, with the first year funded through the Gas Fund. Sponsors:Gas Department and Contracts and Procurement 11.19-0937 Motion authorizing the purchase of two replacement crew trucks from Silsbee Ford of Silsbee, Texas, for a total amount not to exceed $106,861.11 funded through the Gas Fund. Sponsors:Gas Department and Contracts and Procurement 12.19-0660 Motion authorizing a one-year service agreement for rental of nine pickup trucks (half-ton), plus contingency vehicles to be used on a daily or weekly basis when needed, with United Rentals, Inc. of Corpus Christi, Texas, for an amount not to exceed $113,361.10, with one additional one-year option for a total potential multi-year amount not to exceed $226,722.20, with the first-year funding through the Water, Wastewater, and Gas Funds. The trucks will be used by Gas Department and Water Utilities Department to meet daily operational requirements while production and delivery of newly purchased replacement vehicles transpires. Sponsors:Utilities Department, Gas Department and Contracts and Procurement 13.19-0936 Resolution authorizing an agreement with Corpus Christi Alumina, LLC under Chapter 212 of the Texas Local Government Code, relating to the development of property in the City’s extraterritorial jurisdiction. Sponsors:Planning and Environmental/Strategic Initiatives L.RECESS FOR LUNCH M.PUBLIC HEARINGS: (ITEM 14) 14.19-0959 Public Hearing and Second Reading Ordinance closing, abandoning and vacating a 12,632 square foot portion of public street, Broadway Court lying between Water Street and Shoreline Boulevard, conditioned upon payment of $240,000.00 for fair market value of the improved street . Sponsors:Development Services N.RECESS TO CORPORATION MEETING: (ITEM 15) 15.19-0886 Meeting of the North Padre Island Development Corporation Sponsors:Business Liaison O.RECONVENE THE COUNCIL MEETING: Page 4 City of Corpus Christi Printed on 7/23/2019 July 23, 2019City Council Meeting Agenda - Final P.REGULAR AGENDA: (ITEMS 16 - 17) 16.19-0749 Motion awarding a contract to CGC General Contractors, Inc. of San Antonio, Texas for construction of a covered pavilion associated with the Packery Channel Pavilion Boat Launch project in the amount of $218,387.70 for the base bid with funding available from the Tax Increment Reinvestment Zone #2. Sponsors:Engineering Services and Parks and Recreation Department 17.19-0968 Resolution amending Financial Budgetary Policies adopted by Resolution 031547 and providing financial policy direction on preparation of the annual budgets. Sponsors:Office of Management and Budget Q.FIRST READING ORDINANCES: (ITEMS 18 -20) 18.19-0951 Ordinance accepting and appropriating $289,765.00 from the Federal Aviation Administration Grant and authorizing reimbursement of expenses for additional fencing, security cameras, and server upgrades/replacements within the airport terminal building as part of the Perimeter Fencing Project and amending the FY 2018-2019 Capital Budget. Sponsors:Aviation Department 19.19-0964 Ordinance authorizing lease agreement with SMG to allow use of streets bounded by Fitzgerald Street, N. Water Street, Resaca Street and Shoreline Blvd. and including portions of Bayfront Park located along Shoreline Blvd. between Resaca Street and Fitzgerald Street for the 2019 Coastal Bender event and related activities to be held on August 1 - 4, 2019, which requires SMG to pay all permit fees required for the event, estimated at $1,000.00. Sponsors:City Manager's Office and American Bank Center 20.19-0940 Ordinance appropriating $208,138.33 from the Fleet Fund Future Replacement balance; amending the FY2018-2019 operating budget adopted by Ordinance 031548 to increase expenditures; and approving the purchase of seven trucks from Silsbee Ford of Silsbee, Texas, via GoodBuy Purchasing Cooperative for a total amount not to exceed $208,138.33. Sponsors:Gas Department and Contracts and Procurement R.BRIEFINGS: (ITEM 21) 21.19-0958 The 2020 Census helps to determine everything from the eligibility for federal funding to elected representation. The Complete Count Committee and Nueces Together (non-profit) are working together to ensure robust participation in the 2020 Census. Judge Canales will address Council Page 5 City of Corpus Christi Printed on 7/23/2019 July 23, 2019City Council Meeting Agenda - Final regarding participation in their effort. T.EXECUTIVE SESSION: (ITEM 22) 22.19-0983 Executive Session pursuant to Texas Government Code § 551.071 and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to consult with attorneys concerning legal issues and potential litigation with the U.S. Environmental Protection Agency, Texas Commission on Environmental Quality, Texas Attorney General, and/or U.S. Department of Justice concerning the City's sanitary sewer system and/or water system, dissolved oxygen standards in Oso Bay, sanitary sewer overflows, and other regulatory matters related to the City’s wastewater treatment plants. U.IDENTIFY COUNCIL FUTURE AGENDA ITEMS V.ADJOURNMENT Page 6 City of Corpus Christi Printed on 7/23/2019 AGENDA MEMORANDUM Public Hearing/1st Reading Ordinance for the City Council Meeting of July 16, 2019 2nd Reading Ordinance for City Council Meeting July 23, 2019 DATE:6/25/2019 TO:Peter Zanoni, City Manager FROM:Rudy Bentancourt, Housing and Community Development Director RudyB@cctexas.com 361-826-3021 CAPTION: Ordinance adopting the fiscal year (FY) 2019-2020 Consolidated Annual Action Plan (CAAP) for the Community Development Block Grant (CDBG) budget in the amount of $2,650,562.00, the Emergency Solutions Grant (ESG) budget in the amount of $225,067.00, and the HOME Investment Partnerships (HOME) budget in the amount of $1,055,648.00 for a total of $3,931,277.00 of entitlement funding from the United States Department of Housing and Urban Development (HUD) and authorizing the City Manager or designee to execute all documents necessary to submit the CAAP, authorizing a staff complement of 27 positions; accept and appropriate funding for the approved CAAP projects and further execute funding agreements, amendments or other documents necessary to implement the FY2019-2020 CAAP with organizations for approved projects. PURPOSE: The purpose of Public Hearing is to meet the HUD requirements of approving the CAAP and to provide a “Citizen Comment Period” for citizens to provide comments on the proposed project funding for the FY2019- 2020 CAAP. The Ordinance will include the adoption of the proposed CAAP. BACKGROUND AND FINDINGS: The U.S. Department of Housing and Urban Development (HUD) regulation requires, as part of the approved process for the FY2019-FY2020 Consolidated Plan/Citizens Participation Plan, two (2) public hearings prior to the adoption of the FY2019-2020 CAAP. In order to maximize the citizen comments from the public, a total of three (3) Public Hearings were held. An initial public hearing was held at the City of Corpus Christi’s City Hall on February 8, 2019. A second public hearing to receive additional input was held on February 14, 2019. The public hearing to be conducted on Tuesday, July 16, 2019 by the City of Corpus Christi’s City Council will be a third public hearing and will more than satisfy the requirement of the two required hearings. The City of Corpus Christi has received official notification from HUD of the FY2019-2020 funding allocation for the following programs. $2,650,562 Community Development Block Grant (CDBG) $228,067 Emergency Solutions Grant (ESG) Public Hearing/1st Reading Ordinance regarding the City of Corpus Christi’s proposed FY2019-2020 Consolidated Annual Action Plan. $1,055,648 HOME Investment Partnerships Program (HOME) It is important to note that for FY2019-2020, CDBG will experience a 1.39% decrease (-$37,255), ESG will experience a 5.33% increase ($11,545), and HOME will experience a 11.20% decrease (-$133,161) from prior year funding, based on the entitlement funding which will be received from HUD. Additional funding in the amount of $115,863 was recaptured from previously funded projects that were unspent has been made available to be reprogrammed as well as $240,000 of generated program income from the Rehabilitation Loan Program has been made available to augment funding levels for the upcoming FY2019-2020 CDBG program allocations for a total funding level of $3,006,425. Since 1975, the City of Corpus Christi has received funding for its CDBG Programs in excess of $182.6 million, of which approximately $23 million has been income generated by various programs administered by the Housing and Community Development Department. The ESG Program will have an allocation amount of $228,067 for FY2019-2020. The intent of the ESG Program is to provide funding to providers of Homeless services to support the efforts of Emergency Shelter, Homeless Prevention and Rapid Re-Housing activities. Emergency Shelter activities assist with the shelter operations and staffing for homeless shelters. Homeless Prevention activities assist individuals and families who are currently homeless and/or are at high risk of becoming homeless “but for” this assistance. Rapid rehousing programs help families and individuals living on the streets or in emergency shelters solve the practical and immediate challenges to obtaining permanent housing while reducing the amount of time they experience homelessness, avoiding a near-term return to homelessness, and linking to community resources that enable them to achieve housing stability in the long-term. Rapid re-housing is an important component of a community’s response to homelessness. A fundamental goal of rapid rehousing is to reduce the amount of time a person is homeless. Commencing in 1987, the City of Corpus Christi has received in excess of $5 million in funding for ESG program services. The HOME Program will have an allocation amount of $1,055,648 as a funding level from entitlement funds to be received, with an additional $184,304 generated from the Rehabilitation Loan Program for a preliminary estimated funding amount of $1,239,952 for the FY2019-2020 budget year. The HOME Program was initiated in 1992 with the mandate to increase and improve affordable housing opportunities. HOME funds totaling $39.1 million have been utilized to fund Rental and Home Ownership programs in addition to the rehabilitation and reconstruction of affordable housing within the City of Corpus Christi. Of the $39.1 million in HOME funding, approximately $5.5 million of those funds have been made available from previous loans as generated program income. These funds have been utilized to augment available funding. The FY2019-2020 CAAP represents the second annual action plan of the previously approved five-year (FY2018-FY2022) Consolidated Plan and is the application for HUD for funding for the CDBG, ESG, and HOME Programs. The FY2019-2020 CAAP describes the activities and projects to be assisted with funds received under CDBG, ESG, HOME, and other HUD/Non-HUD programs that help to meet housing and community developed objectives. The proposed FY2019-2020 CAAP has been developed according to HUD regulations and is required to be submitted to HUD no later than August 9, 2019. Staff will be making a brief presentation to the City Council at the opening of the Public Hearing so that staff may outline the FY2019-2020 CAAP’s eligibility criteria for the programs and staff’s recommendations. The FY2019-2020 Consolidated Annual Action Plan will be submitted to HUD on or before August 9, 2019 following the required citizen comment period. ALTERNATIVES: None OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Public Hearing is required per HUD Regulations. EMERGENCY / NON-EMERGENCY: This item is non-emergency DEPARTMENTAL CLEARANCES: Legal Finance FINANCIAL IMPACT: Not applicable Fiscal Year: 2019-2020 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: Staff is recommending the approval of the project recommendations for the CDBG, ESG and HOME Programs. LIST OF SUPPORTING DOCUMENTS: Ordinance Presentation CDBG Attachment FY2019-2020 ESG Attachment FY2019-2020 HOME Attachment FY2019-2020 City Council Policy No. 9 Draft FY2019-2020 Consolidated Annual Action Plan @BCL@040DA7BE.docx Ordinance adopting the fiscal year (FY) 2019-2020 Consolidated Annual Action Plan (CAAP) for the Community Development Block Grant (CDBG) budget in the amount of $2,650,562.00, the Emergency Solutions Grant (ESG) budget in the amount of $225,067.00, and the HOME Investment Partnerships (HOME) budget in the amount of $1,055,648.00 for a total of $3,931,277.00 of entitlement funding from the United States Department of Housing and Urban Development (HUD) and authorizing the City Manager or designee to execute all documents necessary to submit the CAAP, authorizing a staff complement of 27 positions; accept and appropriate funding for the approved CAAP projects and further execute funding agreements, amendments or other documents necessary to implement the FY2019-2020 CAAP with organizations for approved projects. Whereas, with proper notice to the public and in accordance with HUD regulations, four public hearings were held, the first and second on February 8, 2019, February 14, 2018, and the third and final public hearing during a meeting of the City Council, in the Council Chambers on Tuesday, July 16, 2019. All hearings were held at City Hall, in the City of Corpus Christi, during which all interested persons were allowed to appear and be heard; and Whereas,the City Council has determined that this Ordinance adopting the FY2019-2020 CAAP would best serve the public health, safety, necessity, convenience and general welfare of the City of Corpus Christi and its citizens. Now therefore, be it ordained by the City Council of the City of Corpus Christi, Texas: Section 1.That the FY2019-2020 CAAP, which includes the CDBG, the ESG, and the HOME Programs, is adopted. Section 2.That the City Manager or the City Manager’s designee is authorized: to submit the FY2019-2020 CAAP to HUD, and to amend the FY2019-2020 CAAP if required by HUD. Section 3. That the City Manager or the City Manager’s designee is authorized: to execute all documents necessary to accept and appropriate upon receipt the grants from HUD into the Grant Fund No. 1059 for the approved FY2019-2020 CAAP, and to execute funding agreements, amendments and all other documents necessary to implement the FY2019-2020 CAAP with organizations for approved projects. Section 4.The proposed personnel complement of 27 positions is authorized for carrying out aspects of the approved FY 2019-2020 CAAP. @BCL@040DA7BE.docx That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ____________Michael Hunter ___________ Roland Barrera ____________Ben Molina ____________ Rudy Garza ____________Everett Roy ____________ Paulette M. Guajardo ____________Greg Smith ____________ Gil Hernandez ____________ That the foregoing ordinance was read for the second time and passed finally on this the _______ day of _______________, 2019, by the following vote: Joe McComb ____________Michael Hunter ___________ Roland Barrera ____________Ben Molina ____________ Rudy Garza ____________Everett Roy ____________ Paulette M. Guajardo ____________Greg Smith ____________ Gil Hernandez ____________ PASSED AND APPROVED on this _____ day of __________________, 2019. ATTEST: __________________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor City Council July 16, 2019 CITY COUNCIL –1st Reading Ordinance Staff Recommendations for the FY2019-2020 CAAP 1 2 •HCD –CDBG Program Administration -$425,000 •HCD –Rehabilitation Services -$757,000 •HCD –Minor Home Repair Grant Program - $580,000 (PI-$240,000) •Parks and Recreation –Play-for-All Splash Playground -$280,000 •Parks and Recreation –Ben Garza Gym Improvements -$100,000 •Human Relations –Fair Housing Marketing Campaign -$10,000 •Police –Code Enforcement –Demolition -$200,000 •Police –Code Enforcement –Clearance of Vacant Prop. -$100,000 •Police –Code Enforcement –Staffing -$302,299 •Nueces County Mental Health Intellectual Disabilities -$52,126 •Corpus Christi Hope House –Emergency Shelter Rehabilitation – $200,000 Staff Recommendations –CDBG FY2019 3 •City of Corpus Christi –ESG Admin Cost - $17,105 •Corpus Christi Hope House -$70,962 •The Salvation Army -$100,000 •Family Endeavors of Corpus Christi -$40,000 Staff Recommendations –ESG FY2019 4 Staff Recommendations –HOME FY2019 •HOME Administration/Technical Assistance -$118,880 •Single Family Rehabilitation Loan Program -$500,000 •Accessible Housing Resources, Inc. -$110,380 •Set-aside -$ 5 QUESTIONS? FY2019 CDBG Allocation $2,650,562 Reprogrammed Funds $115,863 Program Income from Rehabilitation Program (Revolving Loan Fund estimate) $240,000 TOTAL FUNDS AVAILABLE FOR FY2019 CDBG PROGRAM $3,006,425 #PROJECT & DESCRIPTION Request Staff Recomm 1 HCD - CDBG Program Administration This project will fund 5.75 FTE staff salaries and administrative costs: 1- Administrator, 1-Program Manager, 2-Sr. Management Assistants, and 1.75- Contract Administrators. Staff is responsible for administering the Community Development Block Grant (CDBG), the HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG) Programs. Staff interprets CDBG, HOME, and ESG federal regulations, conducts public hearings/meetings, reviews proposed projects and activities to determine funding and eligibility, monitors subrecipients for program compliance, provides technical assistance, conducts environmental assessments of funding projects/activities, and enforces Davis Bacon Federal wage rate requirements. Staff must attend mandatory and required trainings in order to remain in federal compliance. Recommendation is 16% of allowable 20% Staff salaries without benefits: $293,802 HCD operational budget: $16,840 $425,000 $425,000 2 HCD - Rehabilitation Services This is the operating budget for 13.50 FTE staff that service the various housing programs administered by HCD: 1-Director (at 60%), 2-Program Managers, 3- Rehab Specialists, 2.50-Program Specialists, 2-Mortgage Servicing Aides, 1- Managment Assistant (at 40%), and 1-Managment Aide. The staff manage and administer the Demolition/Reconstruction Loan Program, Single Family Rehabilitation Loan Program, Minor Home Repair Grant Program, Appliance Replacement Grant Program, Homebuyer Closing Cost Program, the Type A Homebuyer Program, and Mortgage Servicing which manages the servicing of approximately 700 loans provided through the Single Family Demolition/Reconstruction and Rehabilitation Loan Programs. Services include collection of loan payments, escrowing of insurance and property taxes, payment of insurance and property taxes, preparing end of year escrow analysis, and providing release of liens on loans that are paid off. Services provided include applicant in-take, loan processing, loan settlement, Homebuyer Education, construction monitoring, project estimating, and development of specifications and drawings. Staff must attend mandatory and required trainings to remain in federal compliance. Staff salaries without benefits: $524,746 HCD operational budget: $20,370 $757,000 $757,000 3 HCD - Minor Home Repair Grant Program The Minor Home Repair Grant Program assists homeowners with a grant to provide repairs involving the roof, plumbing, electrical, heating or minor structural repairs. The applicant must be at least 62 years old or disabled. The applicant must meet the very low-income limits. Program Income Projection: $240,000 Entitlement funding: $340,000 $580,000 $580,000 4 Parks and Recreation-Play-for-All Splash Playground The Play-for-All Splash playground will enhance the existing inclusive play structures that have interactive elements for youth of all ages and abilities. The proposed Splash Pad Play Elements is approximately a 2,500 square foot pad design, with fencing around the perimeter and would include a whole collection of different water play elements that activate a wide range of sensory play experiences. The design features includes ground level structures while other elements involve misting, streaming or dumping water experience. Total Project Cost: $300,000 Entitlement funding: $280,000 Parks & Recreation contribution: $20,000 $280,000 $280,000 CITY OF CORPUS CHRISTI FY2019 ANNUAL ACTION PLAN RECOMMENDED FY2019 CDBG PROGRAM 1 #PROJECT & DESCRIPTION Request Staff Recomm 5 Parks and Recreation Ben Garza Gym Improvements The Ben Garza Gym provides recreational space for the immediate neighborhood including single family homes; apartments; homeless shelters and assisted living units. The area is subject to high levels of juvenile deliquency and negative impacts of chronic disease (diabetes, cardiovascular diseases, etc.). Proposed improvements to the park will include new flooring and other park amenities to enhance existing basketball; volleyball, pickleball and general recreational activity programs. The park is also listed as a major investement park in the 2012 Parks and Recreation Master Plan. Total Project Cost: $106,585 Entitlement funding: $100,000 Parks & Recreation contribution: $6,585 $100,000 $100,000 6 Legal Department - Human Relations Division The Human Relations Division will be launching a Fair Housing marketing campaign to educate community on the Fair Housing Act and the Americans with Disabilities Act (ADA). The marketing campaign will include updating publication materials; radio public service announcements; television advertisements and training sessions to address rights of tenants; landlord responsibilities; housing issues and laws pertaining to reasonable accommodations and modifications. $10,000 $10,000 7 Code Enforcement-Demolition This program consists of the demolition of substandard structures determined to be health and safety issues and meet a threshold of 51% or more deterioration of the general structure. The demolition of these structures is an abatement measure as deemed necessary by the City Code of Ordinances and Public Safety Officials. The removal of unsafe structures is a priority for neighborhood revitalization within the community as well as a goal established by City Council. Each structure will be assessed and surveyed by Code Enforcement as a sub-standard building case. The property owner is provided the opportunity to resolve the sub-standard conditions within the parameters of the City’s Building Codes. Structures remaining sub-standard will be demolished under the authority of the Building Standards Board. The City may charge an abatement cost and place a lien against the properties to cover the cost incurred; or, The Demolition Grant Program allows the property owner the opportunity to voluntarily agree to have their structure demolished. This Program benefits low income persons in CDBG eligible areas to aid in the prevention/elimination of slums or blight. $100,000 of this funding will go towards the demolition of 1113 N. Alameda as part of the Harbor Bridge Project Parks mitigation plan. $200,000 $200,000 8 Code Enforcement-Clearance of Vacant Properties This program consists of the clearance of vacant properties in regards to the removal of the accumulation of litter; solid waste; the mowing of tall weeds and dangerous weeds; and, abatement of unsightly and unsanitary matter. The City may charge an abatement cost and place a lien against the properties to cover the cost incurred. This Program benefits low income persons in CDBG eligible areas to aid in the prevention/elimination of slums or blight. All CDBG eligible census tracts in the city meet the HUD criteria for a deteriorating area and meet the national objective of serving the low income clients. $100,000 $100,000 9 Code Enforcement Program (Staffing) This request is to fund full salary for six (6) full-time employees in the Code Enforcement Division of the Police Department - five (5) Compliance Officers at 100% and one (1) Senior Account Clerk at 100% for special code enforcement activities associated with the investigation, notification and abatement of ordinance violations in CDBG eligible areas. This amount includes $10,000 ($1,666.67 for each staff member for required training and certifications). The Program benefits low income persons in CDBG eligible areas to aid in the prevention/elimination of slums or blight. $302,299 $302,299 10 Nueces County Mental Health and Intellectual Disabilities NHID is proposing construction of a new parking lot approximately 8,736 square feet with 2 landscaped curb islands for the center's public visitors, while simultaneously creating an outdoor fenced basketball court for NCMHID's Day Habilitation program, which serve low-income persons with intellectual disabilities. $52,126 $52,126 2 #PROJECT & DESCRIPTION Request Staff Recomm 11 Corpus Christi Hope House CCHH is proposing to convert an old office into additional emergency shelter housing and rehabilitate the resource center into office space. The project will consist of installation of new a/c units, remove/replace flooring throughout the shelter facilities; prep, seal, and paint throughout the shelter. All activities serve the homeless and at-risk of homelessness individuals and families. $200,000 $200,000 Total City Projects $3,006,425 $3,006,425 Overall Total $3,006,425 $3,006,425 3 FY2019 ESG Allocation $228,067 #PROJECT & DESCRIPTION Request Staff Recomm 1 City of Corpus Christi - ESG Administrative Cost Administrative Cost is being requested to fund a staff person at .25 FTE for the overall administration of the Emergency Solutions Grant Program. These functions include the financial oversight, compliance, and technical assistance components of the program. $17,105 $17,105 2 Corpus Christi Hope House The funding requested will provide emergency shelter and supportive services to homeless families, specifically, homeless women with children and provide assistance to keep individuals and families at-risk of homelessness stably housed through Homeless Prevention Program Assistance, and transition individuals and families out of homelessness into permanent housing through Rapid Rehousing Program Assistance. $70,962 $70,962 3 The Salvation Army The requested funding will allow The Salvation Army to continue to provide food, emergency shelter, case management, and supportive services including Rapid Rehousing to homeless and at-risk individuals, families and Veterans and Coordinated Entry services. The Emergency Shelter portion will provide for Emergency Shelter management and kitchen staff, a a portion of shelter utilities, maintenance and food. the Rapid-Rehousing portion will provide for rent and utility funds for 5 households with an average of 3 people each for a total of 15 people. $100,000 $100,000 4 Endeavors of Corpus Christi ESG funds would allow Family Endeavors to serve additional Veterans who are homeless or at risk of homelessness in Corpus Christi with prevention funding to maintain housing or rapid rehousing services to regain housing stability. Endeavors provides rapid re-housing assistance through security deposits, first month’s rental assistance, and utility deposits. Homeless prevention will be provided through the form of rental and utility arrears and continuing case management. $40,000 $40,000 Overall Total $228,067 $228,067 All ESG funding must be matched at 100% RECOMMENDED FY2019 EMERGENCY SOLUTIONS GRANT (ESG) PROGRAM 1 $1,055,648 Program Income from Rehabilitation Program $184,304 $1,239,952 #PROJECT & DESCRIPTION Request Staff Recomm 1 HOME Administration/Technical Assistance Administrative funds for 1.5 FTE staff, planning, oversight, coordination, staff supervision, monitoring and evaluation, contracting, recordkeeping/reporting and overall program management. Staff training and administrative expenses are also included in the request. 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. The amount indicates 10% of the allowed 10% for administrative costs. $105,564 $105,564 2 HCD Single Family Rehabilitation The Single Family Rehabilitation Loan Program benefits only low- and very low-income homeowners. The program provides zero percent and three percent interest loans to homeowners interested in rehabilitating their homes. Funds requested will be used to provide demolition and relocation grants and reconstruction loans to eligible homeowners whose homes are 51% or more deteriorated. $500,000 $500,000 INTERDEPARTMENTAL TOTAL $605,564 $605,564 1 Accessible Housing Resources, Inc. AHRI will provide Tenant Based Rental Assistance (TBRA) vouchers to a minimum of 4 individuals/households with Very Low Incomes and a minimum of 4 individuals/households with Extremely Low Incomes in the City of Corpus Christi. The population to be assisted will include individuals with disabilities, seniors, Veterans, homeless and others at the lowest income levels who may be at risk of homelessness or institutionalization. AHRI seeks HOME TBRA funds to support rent subsidy (for 50% AMI), rent and utility subsidy (for 30% AMI) for the Project for one year; and a part-time staff person to coordinate the Project activities. Total project cost: $112,460 $110,380 $110,380 2 TG 110, Inc. - Casa de Manana Apartments The proposed project will entail the demolition and reconstruction of 99- units. The proposed reconstruction will provide the much needed upgrades for health and safety, and the use of energy efficient materials, fixtures and appliances. The planned on-site amenities are the full perimeter fencing, computer learning center, a new furnished community room; community laundry room; WIFI in the office/community center, children's playscape area and fitness room. 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. Casa de Manana Apartments serves residents at 30%, 50%, and 60% area median income. Total Project Cost: $21,801,967 $350,000 3 Fish Pond Development, LLC - Fish Pond at Corpus Christi Construction of a new 111-unit senior citizen community project on 1.5 acre site located at 1002 Sixth Street. The proposed replacement property will consist of a mix of 3 to 4 story elevator serviced buildings and will offer amenity space for community events as well as offices to house on-site management and the service coordinator. The proposed project is part of the relocation of existing senior citizen residents currently housed at the Sea Gulf Villa property. Total Project Cost: $19,000,000 $350,000 $605,564 $110,380 $110,380 $700,000 $1,415,944 $715,944 RECOMMENDED FY2019 HOME PROGRAM FY2019 HOME Allocation TOTAL FUNDS AVAILABLE FOR FY2019 HOME PROGRAM HCD Projects Total Housing Tax Credit Projects (TBD by August 1, 2019) Overall Total Non-Profit Projects 1 City Council Policy No. 9 Community Development Block Grant and HOME Programs. Through the Community Development Block Grant (CDBG) and HOME Programs, the City Council provides for the development and preservation of a viable urban community, a suitable living environment, decent housing and expanded economic opportunities, principally for persons of low and moderate income, and aids in the prevention or elimination of slums and blight. The City carries out its objectives by providing for appropriate streets and drainage, housing, recreational opportunities, neighborhood preservation, and revitalization, and economic development as needed. To ensure that these objectives are achieved, the following guidelines shall be as follows: a. No CDBG Funds will be authorized to applicant agencies for the support of operating expenses, with the exception of economic development projects that create jobs. b. No capital grants will be made without sufficient evidence of the financial capacity of the applying agency to operate the program. c. Priority will be given to those applying agencies that make substantial new capital contributions to the project for which they are seeking funds. d. Housing shall be maintained as the top priority for the CDBG program as well as placing greater emphasis on public infrastructure (City) in CDBG eligible tracts. e. External agencies awarded CDBG funds will not be eligible to apply for future CDBG funding until two fiscal cycles have elapsed since the fiscal cycle in which funds were granted. (For example, an external agency awarded CDBG funding in fiscal cycle 2013-2014 will not be eligible to apply for future CDBG funding until the 2016-2017 fiscal cycle.) f.Program income generated from the CDBG Housing Program is a revolving fund and will be applied toward Affordable Housing Programs administered by the Housing and Community Development Department, as mandated by the U.S. Department of Housing and Urban Development. Program income generated from the CDBG Demolition Program and the Clearance of Vacant Property Program will be applied to each individual program's revolving fund. Program income generated from the HOME Program will be applied towards maintaining or creating affordable housing in the community. g. Annual funding request for CDBG and HOME programs administered through the Housing and Community Development Department shall be approved in order to ensure that the essential operations of the department are met in accordance with the departments Mission. (Res. No. 21901, § 1, 3-22-1994; Res. No. 026055, § 1, 12-14-2004; Res. No. 026571, § 1, 12-20-2005; Ord. No. 030000, § 1, 10-29-2013; Res. No. 030365, § 1, 12-16-2014; Res. No. 030525, § 1, 6-16-15) DATE:June 13, 2019 TO:Peter Zanoni, City Manager FROM:Daniel McGinn, AICP, Director of Planning & Environmental Services DanielMc@cctexas.com (361) 826-7011 CAPTION: Ordinance amending the Urban Transportation Plan map of MobilityCC, a transportation element of the City’s Comprehensive Plan, for streets proposed in the London area between SH 286 and FM 763 and between the Oso Creek and FM 43; and amending MobilityCC by adding a HikeBikeCC map for the West Oso Creek Wilderness Trail. PURPOSE: The purpose of this item is to update the future street network designated in the City’s Urban Transportation Plan for the London area between SH 286 (Crosstown Expressway) and FM 763 and between the Oso Creek and FM 43 (Weber Road). BACKGROUND AND FINDINGS: Staff has evaluated the Urban Transportation Plan (UTP) for the London area in response to proposed development. With more detail known about future development, a closer look at the proposed street alignments became necessary. The subject area contains approximately 3.85 square miles (2,464 acres) and is located between SH 286 (Crosstown Expressway) and FM 763 and between the Oso Creek and FM 43 (Weber Road). The proposed amendments involve the realignment, elimination, and reclassification of several arterial, collector and parkway type roadways. The proposed amendments will reduce developers’ right-of-way dedication requirements by up to 45% (from 182 acres to 105 acres) and will reduce the miles of streets by 27% (from 18 miles to 13 miles). The amendments also adjust street alignments around development that has already occurred and eliminate bridge construction. The proposed amendments recommended by staff and the Transportation Advisory Commission will: 1.Eliminate a segment Oso Parkway but keep the hike/bike trail element of the Oso Parkway. 2.Eliminate the FM 49 bridge across the Oso Creek and reduce right-of-way (ROW) from Urban Transportation Plan Amendments for the London Area – Between the Oso Creek and FM 43 and between SH 286 and FM 763 AGENDA MEMORANDUM Public Hearing and First Reading Ordinance for the City Council Meeting July 16, 2019 Second Reading Ordinance for the City Council Meeting July 23, 2019 A2 Arterial to C3 Collector, i.e. from 100 feet to 75 feet. 3.Eliminate Greenwood Drive from Oso Creek to FM 43, including the bridge across Oso Creek, and reduce the ROW from A2 Arterial to C3 Collector for the segment north of the Oso Creek. 4.Realign the extension of CR 26, an east-west A2 Arterial, to match existing ROW; reduce to C3 Collector (75-foot ROW); and terminate at CR 33. 5.Realign the east-west C3 Collector to match existing dedicated ROWs and parallel property lines and extend it to SH 286. 6.Shift and reduce the length of the north-south C1 Collector connecting the City Property/Sports Complex and Coastal Bend Community Foundation properties. 7.Eliminate the C1 Collector through London ISD property. The Planning Commission recommended approval of the proposed UTP amendments with the following changes: 1. Addition of a bridge across the Oso Creek extending from County Road 35 on the north to a collector through the London Towne Subdivision and ending at the east-west collector on the northside of London ISD’s campus and upgrading this street from a C1 Collector (60 feet of right-of-way) to a C3 Collector (75 feet of right-of-way). 2. Adjusting the location of a curve in the southernmost C3 Collector. ALTERNATIVES: 1. Approval of the proposed ordinance. 2. City Council can propose its own changes to the proposed UTP amendments. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: The proposed amendments conform to City policy, MobilityCC, and Plan CC Comprehensive Plan. EMERGENCY / NON-EMERGENCY: Non-emergency. DEPARTMENTAL CLEARANCES: Street Operations (Traffic Engineering) Development Services FINANCIAL IMPACT: □ Operating □ Revenue □ Capital X Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Funding Detail: Fund:n/a Organization/Activity: n/a Mission Element:n/a Project # (CIP Only): n/a Account:n/a RECOMMENDATION: Staff and the Transportation Advisory Commission recommend approval of the proposed amendments, and the Planning Commission recommended approval with changes described above and shown in the attachments. The recommendations: Maintain an adequate and efficient street network for proposed land uses. Minimize right-of-way dedication requirements from private landowners and reduces miles of public streets. Address alignment issues. LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Background on Street Types Presentation Page 1 of 4 Ordinance amending the Urban Transportation Plan map of MobilityCC, a transportation element of the City’s Comprehensive Plan, for streets proposed in the London area between SH 286 and FM 763 and between the Oso Creek and FM 43; and amending MobilityCC by adding a HikeBikeCC map for the West Oso Creek Wilderness Trail. WHEREAS,the Transportation Advisory Commission and Planning Commission have forwarded to the City Council its recommendation concerning the amendments to the Corpus Christi Urban Transportation Plan, an element of the Comprehensive Plan of the City of Corpus Christi, Texas; WHEREAS, the Planning Commission held a public hearing on Wednesday, March 20, 2019, regarding amendments to the Corpus Christi Urban Transportation Plan map, during which all interested persons were allowed to appear and be heard; WHEREAS,City Council held a public hearing on Tuesday, July 16, 2019, regarding amendments to the Corpus Christi Urban Transportation Plan map, during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that these amendments would best serve public health, necessity, and convenience, and the general welfare of the City of Corpus Christi, and its citizens; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The Corpus Christi Urban Transportation Plan map of MobilityCC, an element of the Comprehensive Plan of the City of Corpus Christi, Texas (the “Comprehensive Plan”), is amended as shown in the attached Exhibit A titled “Staff Recommendation.” SECTION 2. Mobility CC is amended by adding a HikeBikeCC map for the West Oso Creek Wilderness Trail, which is a priority off-street facility located between FM 763 and SH 286 with connection to County Road 33 and following the floodway boundary of the south side of the Oso Creek, as shown in Exhibit B. SECTION 3.To the extent the amendments made by this ordinance represent a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the amendments made by this ordinance. SECTION 4. The Comprehensive Plan, as amended from time to time and except as changed by this ordinance, remains in full force and effect. SECTION 5. Any ordinance or part of any ordinance in conflict with this ordinance is expressly repealed by this ordinance. SECTION 6. The City Council intends that every section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance be given full force and effect for its purpose. Therefore, if any section, paragraph, clause, phrase, word, or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word, or provision of this ordinance. Page 2 of 4 SECTION 7. Publication shall be made in the City’s official publication as required by the City’s Charter. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor Page 3 of 4 EXHIBIT A Page 4 of 4 EXHIBIT B Street Types of the Urban Transportation Plan The Collector Street type collects and distributes traffic to and from local streets, other collectors, arterials, and freeway frontage roads. The function of this street type is to “collect” neighborhood traffic and strategically direct the traffic to the arterial grid system. However, the Collector Street system should not create high speed “short cuts” through residential neighborhoods. The ideal collector street intersection spacing between arterials is 0.25 to 0.50 miles apart. On-street parking and direct access to homes from this street type is discouraged. The C1 Minor Residential Collector is the lowest order collector and provides for internal neighborhood circulation as well as property access. This type of collector should not connect parallel arterial streets but may connect with arterial streets which are perpendicular to one another. The most common type of Collector Street, this collector will circulate traffic within a neighborhood, moving it from a higher order arterial street to a local access street. This street class is not intended to be continuous for more than one mile. Off-sets, or “T” intersections, are appropriate for this class of street in order to prevent short cuts through neighborhoods. This street type may serve low density housing to medium multifamily housing, elementary schools or other uses with similar traffic generating characteristics. The C3 Primary Collector provides access to commercial developments and/or several neighborhoods and may intersect with two or more arterial streets. The primary collector can augment the freeway or arterial system where high-density development generates significant amounts of traffic. The Primary Collector may be used to support the freeway system by paralleling the freeway and providing a relief route for traffic from high density uses next to the freeway. The Primary Collector is expected to support heavy delivery vehicle traffic and is built to a higher more durable standard than the Secondary or Minor Collector Streets. Primary Collector Streets serve medium to high density housing, high schools, public facilities and business uses. P1 Parkway Collectors take advantage of natural or man-made scenic views or areas. Parkways will contain hike and bike trails on the “scenic” side of the street. Arterial streets bring traffic to and from the freeway and accommodate high volumes of cross-town traffic. The ideal design of the arterial system is characterized by a grid street pattern with arterial spacing at 1 to 1.5-mile intervals. Efficient movement is the primary function of arterial roads, hence, private access and frontage should be con- trolled and limited to high volume generators like shopping centers, universities, employment centers, etc. Residential properties should not front on these roads as access to small single lot developments can erode the traffic carry capacity of the arterial system. Council Presentation July 16, 2019 1 Urban Transportation Plan (UTP) Amendments in the London Area 2 NN OSO BAY CORPUS CHRISTI BAY OSO CREEK CCIA Subject Area (≈ 3.85 sq. miles or 2,464 acres) WEBER RD / FM 43 CITY LIMITSFM 763STAPLES ST / FM 2444 London School 3 Current UTP LEGEND Proposed Arterial Proposed Collector Proposed Parkway C3 A3 FM 43 / WEBER RD A2 A2 FM 763CR 26 FM 49A2 C1C1 A2 C3 C3 P1 A2 C3 P1 A2 C1 C1 C3 C3 A2 C3 C3 A2 A2 A2 P1 P1 London School London School JC Elliott Collection Center JC Elliott Collection Center C1 Collector: 60’ ROW 2 travel lanes 2 parking lanes C3 Collector 75’ ROW 4 travel lanes P1 Parkway 80’ ROW 2 travel lanes 2 parking lane Hike/bike trail A1 Arterial 95’ ROW 4 travel lanes Center turn lane A2 Arterial 100’ ROW 4 travel lanes Median A3 Arterial 130’ ROW 6 travel lanes Median A1 Arterial 95’ ROW; 4 Travel Lanes; Center Turn Lane A2 Arterial: 100’ ROW; 4 Travel Lanes; Median A3 Arterial: 130’ ROW; 6 Travel Lanes; Median Street Types C1 Collector 60’ ROW; 2 Travel Lanes; 2 Parking Lanes C3 Collector 75’ ROW; 4 Travel Lanes P1 Parkway 80’ ROW; 2 Travel Lanes; 2 Parking Lanes; Hike/Bike Trail 5 Highlights •Eliminates bridge construction •Reduces ROW dedication by up to 45% (from 182 to 105 acres) •Reduces miles of street construction by 27% (from 18 to 13 miles) •Adjusts street alignments around development that has already occurred. 6 Staff & TAC Recommendation C1 Collector: 60’ ROW 2 travel lanes 2 parking lanes C3 Collector 75’ ROW 4 travel lanes P1 Parkway 80’ ROW 2 travel lanes 2 parking lane Hike/bike trail A1 Arterial 95’ ROW 4 travel lanes Center turn lane A2 Arterial 100’ ROW 4 travel lanes Median A3 Arterial 130’ ROW 6 travel lanes Median 7 Planning Commission Recommendation C1 Collector: 60’ ROW 2 travel lanes 2 parking lanes C3 Collector 75’ ROW 4 travel lanes P1 Parkway 80’ ROW 2 travel lanes 2 parking lane Hike/bike trail A1 Arterial 95’ ROW 4 travel lanes Center turn lane A2 Arterial 100’ ROW 4 travel lanes Median A3 Arterial 130’ ROW 6 travel lanes Median 8 Oso Creek Bridge Spacing NN FM 763OSO CREEK CORPUS CHRISTI BAY FM 665FM 2292CR 55CR 35Proposed Street Proposed Freeway Existing Street City Limit Existing Freeway Proposed Collector (Planning Commission Recommendation) 1.5 mi2.85 mi 9 Recommendations Staff recommends approval of the proposed amendments as illustrated. Planning Commission recommends approval of the staff recommendation with the following changes: •Keep a bridge across the Oso Creek from CR 35 to London ISD, o And, upgrade this street from C1 to C3 Collector. •Adjust the curve in the southernmost east-west collector. 10 Recommendations The recommendations: •Are consistent with City policy/plans. •Maintain an adequate and efficient street network for proposed land uses. •Minimize right-of-way dedication requirements from private landowners and reduces miles of public streets. •Address alignment issues. DATE:June 28, 2019 TO:Peter Zanoni, City Manager FROM:Daniel McGinn, Director of Planning and Environmental Services DanielMc@cctexas.com (361) 826-7011 CAPTION: Ordinance disannexing approximately 662.51 acres located along Texas State Highway 361 and areas south of State Highway 361 from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly and affirming annexations and boundaries; providing for severance, publication, and an effective date. PURPOSE: The purpose of this item is to disannex 662.51 acres of land located on the north side of Corpus Christi Bay currently within the boundaries of the City of Corpus Christi and to reaffirm the boundaries of the City limits. BACKGROUND AND FINDINGS: The City of Corpus Christi annexed approximately 3,047.80 acres of land along the north side of Corpus Christi Bay in San Patricio County on May 21, 2019. Today, the City proposes disannexation of approximately 662.51 acres, which leaves the remaining annexed territory at 2,385.29 acres of land. The area being disannexed includes land owned by the Texas Department of Transportation (right-of-way), San Patricio County Water District, and Cheniere that is not necessary or suitable for the City’s purposes; land owned by Chemours, who has a pending Industrial District Agreement in lieu of annexation; and land owned by CC Alumina, who has a pending Chapter 212 economic development agreement prohibiting annexation. ALTERNATIVES: City Council could choose not to disannex the proposed areas. OTHER CONSIDERATIONS: None Disannexation on the North Side of Corpus Christi Bay in San Patricio County AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting July 16, 2019 Second Reading Ordinance for the City Council Meeting July 23, 2019 CONFORMITY TO CITY POLICY: The proposed item is consistent with City policy and the Comprehensive Plan as follows: Plan CC’s Vision Statements identifies that “Our broadly diversified economy provides opportunity for all.” Plan CC’s Future Land Use Plan indicates this area for industrial development. Plan CC Element 7, Goal 6 states “Annexation plans provide for orderly growth and industrial agreements in the ETJ.” Plan CC Element 7, Goal 6, Strategy 6 states, “Support the evaluation of the use of industrial district agreements in lieu of annexation for industrial area of the city and ETJ.” EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Legal Planning City Manager’s Office FINANCIAL IMPACT: □Operating □ Revenue □ Capital x Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Funding Detail: Fund:n/a Organization/Activity: n/a Mission Element:n/a Project # (CIP Only):n/a Account:n/a RECOMMENDATION: Staff recommends approval of this ordinance to disannex the proposed areas. LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibits Presentation 1 Ordinance disannexing approximately 662.51 acres located along Texas State Highway 361 and areas south of State Highway 361 from the City of Corpus Christi, Texas; adjusting the City boundaries accordingly and affirming annexations and boundaries; providing for severance, publication, and an effective date. WHEREAS, the City Council finds the areas described in Exhibits A, B, C, D, E, & F are not necessary or suitable for city purposes and that the best interest of the general public of the City of Corpus Christi to disannex the areas described in Exhibits A & B; WHEREAS, the City of Corpus Christi has a pending 212 Development Agreement with Corpus Christi Alumina LLC, a Delaware limited liability company and pending Industrial District agreements with Chemours Company FC, LLC, a Delaware limited liability company; WHEREAS, this disannexation is pursuant to Texas Local Government Code §43.142 and the City Charter of the City of Corpus Christi, Texas; and WHEREAS, disannexation of the area described in Exhibits A, B, C, D, E, & F, amendment to previous annexation ordinances, and amendment and adoption of the official map and boundaries of the City and its extraterritorial jurisdiction are consistent with the procedural rules prescribed by Texas Local Government Code Chapter 43. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The foregoing recitals are hereby found to be true and correct and are hereby adopted by the City Council and made a part hereof for all purposes as findings of fact. SECTION 2. The annexation of territory by ordinance #031777, less the area described by metes and bounds and map in Exhibits A & B, attached to and incorporated as part of this ordinance, is hereby reaffirmed and annexed pursuant to Texas Local Government Code §43.064. SECTION 3. The following described tracts of land being approximately 662.51 acres are hereby disannexed and discontinued as a part of the City of Corpus Christi so that the same will no longer be a part of the City of Corpus Christi for any purpose whatsoever, said tracts of land being more particularly described by metes and bounds and maps in Exhibits A, B, C, D, E, & F attached to and incorporated as part of this ordinance. SECTION 4. The boundaries of the City of Corpus Christi, Texas are amended to exclude only that property comprising an approximately 662.51 acres described in Exhibits A, B, C, D, E, & F. SECTION 5. The official map and boundaries of the City and its extraterritorial jurisdiction, previously adopted and amended, are amended as described in this ordinance. The annexed area as amended is hereby annexed to and remains within the corporate limits as described in the map in Exhibit G (New Corpus Christi City Limits). SECTION 6. The City Manager or 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 extraterritorial jurisdiction. 2 SECTION 7. The City of Corpus Christi, Texas, hereby relinquishes any and all right, jurisdiction or control over the above described disannexed area but retains its extraterritorial jurisdiction. SECTION 8. The above described territory hereby disannexed shall no longer be part of the City of Corpus Christi, Texas, and the property so removed hereby shall no longer bear its pro rata part of the taxes levied by the City of Corpus Christi, Texas. SECTION 9. Should any section or part of this ordinance or ordinances hereby amended be held unconstitutional, illegal or invalid, or the application thereof ineffective or inapplicable as to any territory, such unconstitutionality, illegality, invalidity or ineffectiveness of such section or part shall in no wise affect, impair or invalidate the remaining portion or portions thereof, but as to such remaining portion or portions, the same shall be and remain in full force and effect; and should this ordinance for any reason be ineffective as to any part of the area hereby annexed to the City of Corpus Christi, such ineffectiveness of this ordinance as to any such part or parts of any such area shall not affect the effectiveness of this ordinance as to all of the remainder of such area, and the City Council hereby declares it to be its purpose to annex to the City of Corpus Christi every part of the area described in Section 5 of this ordinance, regardless of whether any other part of such described area is hereby effectively annexed to the City. Provided, further, that if there is included within the general description of territory set out in Section 5 of this Ordinance to be hereby annexed to the City of Corpus Christi any lands or area which are presently part of and included within the limits of the City of Corpus Christi, or which are presently part of and included within the limits of any other City, Town or Village, or which are not within the City of Corpus Christi's jurisdiction to annex, the same is hereby excluded and excepted from the territory to be hereby annexed as fully as if such excluded and excepted area were expressly described herein. SECTION 10. The City Secretary is hereby directed to file with the County Clerk of San Patricio, Texas, a certified copy of this ordinance. SECTION 11. Publication will be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 12. Sections 1, 2, 9, 10, & 11 shall be effective immediately upon passage. Sections 3, 4, 5, 6, 7, & 8 shall be effective one day after passage. 3 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo ________________ Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo ________________ Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 1 EXHIBIT A METES AND BOUNDS DESCRIPTION OF A 185.760 ACRE TRACT 185.760 acres of land out of the T.T. Williamson Survey A-289 and A-291, the J. Gerraghty Survey A-139 and the G. Valdex Survey A-269, San Patricio County, Texas and State Tracts 1 and 2, Corpus Christi Bay, Nueces County, Texas. This land description including a 94.477-acre tract called Tract III of a 4777.03- acre tract of land describe in File No. 344474 of the Real Property Records of San Patricio County, Texas situated and out of Lot 5, block C, of the Gregory Subdivision of the Coleman Fulton Pasture Company land, a map of which is recorded in Volume 1, page 11B, of the Map of Records of San Patricio County, Texas. In addition, this real property description describes a 28.242-acre residue land out of the Cheniere Land Holdings, LLC 827.38-acre Tract Clerk’s File No. 649462, and a 63.041-acre segment of Texas Department of Transportation Rights-of-Way associated with the Highway 361 roadway and being more particularly described by metes and bounds as follow with coordinates and bearings on the State Plane Coordinate System, Texas South Zone, NAD 83 (2011 adj). COMMENCING at a 5/8 inch rod set for the corner at the intersection of the Southeast Rights-of-Way line of State Highway 35 and the Northeast Right-of-Way line of the Union Pacific Railroad and the westerly corner of a called 253.90-acre tract of land described in deed to TPCO America Corporation recorded in Clerks File No. 599763 THENCE South 60-02-44 East, a distance of 1,325.516 feet to a point on the City of Corpus Christi, Texas City limits and the south line of a called 253.90-acre tract of land the Northwest corner of the herein described tract having coordinates of N: 17,222,948.868, E: 1,380,117.557, and the POINT OF BEGINNING; THENCE with the Northern boundary of the Texas Department of Transportation (TxDOT) Right-of-Way; • South 60-02-17 East, a distance of 2,685.812 feet to 5/8-inch iron rod set for the corner in the Northeast Right-of-Way of the Union Pacific Railroad that runs Northeast of and adjacent to State Highway 361, being the Southwest corner of a 151.74-acre tract conveyed to TPCO America Corporation recorded in Clerk’s File No. 699060, a point for the corner of this tract; • South 60-02-17 East, a distance of 854.364 feet to 5/8-inch iron rod set for the corner in the Northeast Right-of-Way of the Union Pacific Railroad, that runs Northeast of and adjacent to State Highway 361, being a Southeast corner of the referenced 151.74 acre-tract and the Southwest corner of a 382.621-acre tract conveyed to Du Pont de Nemours and Company recorded in Clerk’s File No. 344474, a point for the corner of this tract; • South 60-02-17 East, a distance of 3,111.464 feet to 5/8-inch iron rod set for the corner in the Northeast Right-of-Way of the Union Pacific Railroad, that runs Northeast of and adjacent to State Highway 361, being a Southeast corner of referenced 382.621-acre tract, same being the Southwest corner of said 94.477-acre tract, a point for the corner of this tract; THENCE with the West, North, and Eastern bounds of said 94.477-acre tract the following bearings and distances; • North 01-13-28 West, a distance of 891.032 feet to a 5/8-inch iron rod, being a Southern corner of the 382.621-acre tract referenced, to a point for the corner of this tract; • North 88-45-46 East, a distance of 2,515.78 feet to a 5/8-inch iron rod, being a Southeast corner of the 382.621-acre tract referenced, to a point for the corner of this tract; 2 • South 00-18-29 East, along the same line being the west boundary line of that certain 372.1-acre tract of land, described in Volume 83, page 188, of the Deed of Records of San Patricio County, Texas at 430.38 feet, pass a 1-inch iron rod found for the northwest corner of that certain 389.60-acre tract of land described in File No. 459564, of the Real Property Records of San Patricio County, Texas continuing with the west boundary line of said 389.60-acre tract of land, at 2,239.60 feet, pass a 5/8 inch iron rod, found, for the southwest corner of said 389.60-acre tract of land, same point being the northwest corner of a 15.16-acre tract described in Clerk’s File No. 252362 of the Real Property Records of San Patricio County, Texas, in all a distance of 2,391.519 to the northeastern boundary of the Union Pacific Railroad Right-of-Way for a corner of this tract; THENCE South 00-18-29 East, a distance of 324.201 feet to the Southwestern edge of the State Highway No. 361 Right-of-way, for a corner of this tract; THENCE North 60-10-59 West, a distance of 56.176 feet along the Southwestern edge of the State Highway 361 Right-of-Way, to a found 3-inch aluminum cap “MON 6A” being the Northeast corner of a 205.06-acre tract conveyed by Cheniere Land Holdings, LLC and described in Clerk’s File No. 649462, for a corner of this tract; THENCE North 60-02-22 West, a distance of 3,967.10 feet to a 58-inch iron rod with yellow cap “RPLS 3589” being the Northwest corner of said 205.06-acre tract, same point being the Northeast corner of a 20.80-acre tract conveyed by Corpus Christi Alumina, LLC and described in Clerk’s File No. 664353, for a corner of this tract; THENCE North 60-02-21 West, a distance of 541.561 feet to a 5/8-inch iron rod with cap “3589” being the Northwest corner of said 20.80-acre tract, for a corner of this tract; THENCE North 60-02-22 West, a distance of 4,449.418 for a corner of this tract; THENCE South 23-04-36 West, a distance of 24.099 feet for a corner of this tract; THENCE South 45-11-48 West, a distance of 410.95 feet for an angle corner of this tract; THENCE South 51-24-34 West, a distance of 413.97 feet for an angle corner of this tract; THENCE South 67-10-27 West, a distance of 478.76 feet for an angle corner of this tract; THENCE South 70-10-25 West, a distance of 323.90 feet for an angle corner of this tract; THENCE South 72-17-13 West, a distance of 508.00 feet for an angle corner of this tract; THENCE South 77-27-35 West, a distance of 518.02 feet for an angle corner of this tract; THENCE South 78-36-32 West, a distance of 516.02 feet for an angle corner of this tract; THENCE South 75-27-39 West, a distance of 37.58 feet to a point on the western boundary of said 827.38-acre tract, for a corner of this tract; THENCE South 77-46-21 West, a distance of 147.543 feet to a point on the western boundary of a 44.72- acre tract conveyed to Corpus Christi Liquifaction, LLC Clerk’s File No. 677602, for a corner of this tract; 3 THENCE North 17-44-35 West, a distance of 84.90 feet continuing on the west boundary line of the said 44.72-acre tract to the intersection with the City of Corpus Christi, Texas City Limits, to a point on the Gregory Extraterritorial Jurisdiction (ETJ) for a corner of this tract; THENCE North 65-26-01 East, a distance of 1,519.832 feet following the City of Corpus Christi City Limits, over and across the said 827.38-acre tract, with the said ETJ line, for an angle corner of this tract; THENCE with a circular curve to the Left, having a Delta of 36-26-57, a Radius of 2,690.442 feet, a Chord Length of 1,685.824 feet, and a Chord Bearing of North 46-48-15 East and the POINT OF BEGINNING, containing 185.760 Acres of Land, more or less. EXHIBIT B 1 EXHIBIT C METES AND BOUNDS DESCRIPTION OF A 116.68 ACRE TRACT Being a 116.68-acre portion of the 142.62-acre tract described in Clerk’s File No. 644302. Said 142.62-acre tract being out of and a part of that certain E.I. Du Pont de Nemours and Company called 651.63-acre tract of land, more fully described and recorded in Volume 426, Page 32 of the Deed and Records of San Patricio County, Texas and that certain called 686.22-acre tract of land, more fully described and recorded in Clerk’s File No. 211990 of the Official Public Records of San Patricio County. Said 142.62-acre tract of land being situated in the T.T. Williamson Survey, Abstract No. 292 and the T.T. Williamson Survey, Abstract No. 293 in San Patricio County, Texas and being more particularly described as follows: COMMENCING at a 1-inch iron rod found in concrete at the intersection of the Southwest line of State Highway No. 361 and the East line of said 686.22-acre tract, THENCE South 01-24-58 East along and with the East line of Said 686.22-acre tract, a distance of 5,042.16 feet to a point; THENCE South 89-59-03 West a distance of 1,433.19 feet to a 1-inch iron rod found in concrete at an Ell Corner of that certain Occidential Electrochemicals Corp. Called 592.751-acre tract of land save and except 54.483 acres, more fully described and recorded in Clerk’s File No. 364008 of said Official Public Records, same being the most Eastern Northeast corner THENCE South 89-59-03 West a distance of 268.553 feet to an point on the City of Ingleside Extraterritorial Jurisdiction (ETJ) and POINT OF BEGINNING of the herein described tract, having coordinates of N: 17,210,472.152 E: 1,390,723.639; THENCE with a circular curve to the Left, having a Delta of 13-40-20, a Radius of 5,332.557 feet, a Chord Length of 1,269.477 feet, and a Chord Bearing of South 01-32-58 East, following the City of Corpus Christi City Limits, and with the said ETJ line, for an angle corner of this tract; THENCE with a circular curve to the Left, having a Delta of 10-26-10, a Radius of 7,890.264 feet, a Chord Length of 1,435.170, and a Chord Bearing of South 30-23-24 West following the City of Corpus Christi City Limits, and with the said ETJ line, for an angle corner of this tract; THENCE South 89-59-22 West, a distance of 251.774 feet departing said ETJ line to a set “X” in concrete for the Southern Southwest corner of this tract; THENCE North 00-00-02 East, a distance of 712.15 feet to a 1-inch iron rod set in concrete being an Ell corner of this tract; THENCE North 89-59-58 West, a distance of 402.10 feet to a corner of this tract; THENCE South 00-00-02 West, a distance of 122.59 feet to a corner of this tract; THENCE North 89-58-33 West, a distance of 66.80 feet to a corner of this tract; THENCE South 00-16-29 East, a distance of 20.40 feet to a corner of this tract; THENCE South 89-27-22 West, a distance of 88.81 feet to a corner of this tract; THENCE North 00-54-54 East, a distance of 6.02 feet to a corner of this tract; THENCE North 89-53-04 West, a distance of 30.88 feet to a corner of this tract; 2 THENCE North 00-13-47 East, a distance of 15.14 feet to a corner of this tract; THENCE South 89-48-03 West, a distance of 67.11 feet to a corner of this tract; THENCE North 46-21-31 West, a distance of 532.53 feet to a corner of this tract; THENCE North 89-53-44 West, a distance of 58.82 feet to a corner of this tract; THENCE North 44-48-39 West, a distance of 280.02 feet to a corner of this tract; THENCE South 74-27-47 West, a distance of 24.39 feet to a corner of this tract; THENCE North 00-07-43 East, a distance of 579.20 feet to a corner of this tract; THENCE North 00-18-29 West, a distance of 1,378.00 feet to a corner of this tract; THENCE North 89-59-36 East, a distance of 150.87 feet to a corner of this tract; THENCE North 00-00-53 West, a distance of 59.73 feet to a corner of this tract; THENCE North 89-59-07 East, a distance of 462.94 feet to a corner of this tract; THENCE South 00-03-13 East, a distance of 21.08 feet to a corner of this tract; THENCE North 89-59-07 East, a distance of 758.06 feet to a corner of this tract; THENCE South 00-00-56 East, a distance of 638.46 feet to a corner of this tract; THENCE North 89-59-03 East, a distance of 898.02 feet to the POINT OF BEGINNING and containing 116.68 acres of land, more or less. EXHIBIT D 1 EXHIBIT E METES AND BOUNDS DESCRIPTION OF A 360.07 ACRE TRACT Being a 360.07-acres tract of a certain tract or parcel contained by a 538.766 acres tract of land out the T.T. Williamson Survey A-288, A-289, A-290 and A-291, the J. Gerraghty Survey A-139 and the G. Valdex Survey A-269, San Patricio County, Texas and State Tracts 1 and 2, Corpus Christi Bay, Nueces County, Texas and being out of that certain residue of a called 1,610.0 acre tract of land (Tract 1, Parcel 1A) conveyed to Sherwin Alumina, L.P., as recoded under Clerk’s file No. 502130 in the Real Property Records of San Patricio County, Texas and being more particularly described by metes and bounds as follow with coordinates and bearings on the State Plane Coordinate System, Texas South Zone, NAD 83 (2011 adj). COMMENCING at a 1-1/2” diameter iron rod in concrete found for the apparent northwest corner of an 18.4 acre tract of land described in deed recorded in Volume 495, Page 420 of the Deed Records of San Patricio County, Texas THENCE N 00-02-16 E, a distance of 5,064.002 feet to a point on the City of Corpus Christi, Texas City limits and the west line of a called 310.70 acre tract of land described in deed to Occidental Chemical Corporation recorded in Clerks File No. 605165, the Southeast corner of the herein described tract having coordinates of N: 17,209,892.269, E: 1,385,897.693, and the POINT OF BEGINNING; THENCE with the Southern boundary of the subject tract and the meander of the approximate shoreline of Corpus Christi Bay; • North 59-19-06 West, a distance of 65.629 feet to a point for the corner of this tract; • North 77-23-18 West, a distance of 832.90 feet to a point for the corner of this tract; • North 43-23-51 West, a distance of 795.92 feet to a point for the corner of this tract; • North 71-09-07 West, a distance of 108.98 feet to a point for the corner of this tract; • North 88-58-37 West, a distance of 194.48 feet to a point for the corner of this tract; • North 13-34-14 West, a distance of 103.59 feet to a point for the corner of this tract; • North 87-30-38 West, a distance of 159.87 feet to a point for the corner of this tract; • South 39-48-19 West, a distance of 54.24 feet to a point for the corner of this tract; • North 77-27-04 West, a distance of 365.67 feet to a point for the corner of this tract for the Southwest corner of this tract; THENCE with the eastern boundary of a 25.16-acre tract out of Corpus Christi Liquefaction, LLC 44.419- acre tract Clerk File No. 677602: • North 17-33-01 West, departing the approximate shoreline, a distance of 1,511.938 feet to a point for a corner of this tract; • North 00-34-16 West, a distance of 1008.648 feet to a found ½” iron rod to the beginning of a northerly curve to the right having a Central Angle of 39-48-10, a Radius of 377.73, a Chord Length of 257.160 feet, and a Chord Bearing of North 19-03-46 East to a found 1-2” iron rod, and an angle of the herein described tract; • North 00-00-13 West, a distance of 369.43 feet to found 5/8” iron rod with a red cap “4229” for a corner of the herein described tract; 2 • North 89-46-38 West, a distance of 161.85 feet to a point for a corner of the herein described tract; • North 00-00-00 East, a distance of 194.05 feet to a point for a corner of the herein described tract; • North 45-00-00 East, a distance of 56.65 feet to a point for a corner of the herein described tract; • North 00-20-08 West, a distance of 1,259.22 feet to a found 5/8” iron rod with a red cap “4229” for a corner of the herein described tract; • North 03-35-06 East, a distance of 92.59 to a point for a corner of the herein described tract; THENCE with the eastern boundary of the 703.73-acre tract out of Cheniere Holdings, LLC Clerk File No. 649462; • North 03-35-06 East, a distance of 139.67 feet to a found 5/8” iron rod with red cap “4229”, a corner of the herein described tract; • North 19-40-52 West, a distance of 93.20 feet to a found 5/8” iron rod with red cap “4229”, a corner of the herein described tract; • North 63-43-16 East, a distance of 287.04 feet to a corner of the herein described tract; • North 18-17-16 West, a distance of 664.61 feet to a found 5/8” iron rod with red cap “4229”, a corner of the herein described tract; • North 27-52-31 East, a distance of 160.93 feet to a found 5/8” iron rod with red cap “4229”, a corner of the herein described tract; • North 16-37-47 West, a distance of 219.39 feet to a found 5/8” iron rod with red cap “4229”, a corner of the herein described tract; • North 29-37-35 East, a distance of 103.27 feet to a found 5/8” iron rod with red cap “4229”, a corner of the herein described tract; • North 72-07-11 East, a distance of 1,326.26 feet to a corner of the herein described tract; • North 00-22-46 West, a distance of 1.482 feet to a found 5/8” iron rod with a red cap “4229”, a corner of the herein described tract; • North 89-36-08 East, a distance of 365.962 feet to a found 5/8” iron rod with a red cap “4229”, a corner of the herein described tract; • South 00-28-47 East, a distance of 906.69 feet to a found 5/8” iron rod with red cap “G&W ENGR”, a corner of the herein described tract; THENCE South 00-28-55 East, a distance of 537.78 feet to found 5/8” iron rod located at the Northeast corner of a 138.04-acre parcel being a part of the same property as 341.3 acres (AKA Renolds/Alcoa Retained Tract #2) in Deed recorded in Clerk’s File No. 502131 of the official Public Records of San Patricio County, Texas; THENCE with the lines of said 138.04-acre parcel with the following courses and distances: • South 89-25-06 West, a distance of 160.78 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 01-02-27 East, a distance of 322.89 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 23-17-38 East, a distance of 92.98 feet to a found 5/8” iron rod, a corner of the herein described tract; 3 • South 33-47-25 East, a distance of 89.85 feet to a found 5/8” iron rod, a corner of the herein described tract; • North 89-53-02 East, a distance of 656.73 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 00-16-17 East, a distance of 242.47 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 00-35-08 West, a distance of 251.72 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 01-22-19 East, a distance of 611.30 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 56-03-52 East, a distance of 89.50 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 88-03-00 East, a distance of 141.16 feet to a found 5/8” iron rod, a corner of the herein described tract; • South 61-06-28 East, a distance of 293.64 feet to a found 5/8” iron rod located at the most southerly corner of the said 341.3-acre tract; THENCE South 00-19-15 East, a distance of 4,170.663 feet to a corner of the herein described tract; THENCE South 26-37-40 West, a distance of 73.081 feet to the POINT OF BEGINNING and containing 360.07 acres EXHIBIT F EXHIBIT G Disannexation of 662.51 Acres on the North Side of Corpus Christi Bay in San Patricio County Council Presentation July 16, 2019 1 2 Current City Limits Approximately 3,047.80 Acres Corpus Christi Bay Ingleside 3 Disannexation Areas Totaling Approximately 662.51 Acres 4 New City Limits After Disannexation Approximately 2,385.29 Acres DATE:June 28, 2019 TO:Peter Zanoni, City Manager FROM:Daniel McGinn, Director of Planning and Environmental Services DanielMc@cctexas.com (361) 826-7011 CAPTION: Ordinance authorizing the establishment of Industrial District No. 8 within the Extraterritorial Jurisdiction of the City of Corpus Christi, Texas; and authorizing Industrial District Agreement with property owners within the Industrial District. PURPOSE: To create a new industrial district in San Patricio County. BACKGROUND AND FINDINGS: The City currently has three industrial districts in its extraterritorial jurisdiction in Nueces County and three in San Patricio County. Upon disannexation of the subject area, Staff recommends the creation of a new Industrial District No. 8 in the City’s extraterritorial jurisdiction in San Patricio County to encompass the boundaries of the Chemours facility. The proposed standard form Industrial District Agreement that would be used in Industrial District No. 8 contains the same payment terms that the City has used for its current agreements in Nueces County, except that it does not reference grandfathered improvements as no entity in San Patricio County was subject to the previous industrial district agreement. This agreement is also updated to confirm that the property values will be determined by the San Patricio County Appraisal District rather than the Nueces County Appraisal District. ALTERNATIVES: City Council could choose not to approve the ordinance. OTHER CONSIDERATIONS: None Creation of Industrial District No. 8 in San Patricio County AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting July 16, 2019 Second Reading Ordinance for the City Council Meeting July 23, 2019 CONFORMITY TO CITY POLICY: The proposed item is consistent with City policy and the Comprehensive Plan as follows: Plan CC’s Vision Statements identifies that “Our broadly diversified economy provides opportunity for all.” Plan CC’s Future Land Use Plan indicates this area for industrial development. Plan CC Element 7, Goal 6 states “Annexation plans provide for orderly growth and industrial agreements in the ETJ.” Plan CC Element 7, Goal 6, Strategy 6 states, “Support the evaluation of the use of industrial district agreements in lieu of annexation for industrial area of the city and ETJ.” EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Legal Planning Development Services City Manager’s Office FINANCIAL IMPACT: □Operating □ Revenue □ Capital x Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Funding Detail: Fund:n/a Organization/Activity: n/a Mission Element:n/a Project # (CIP Only):n/a Account:n/a RECOMMENDATION: Staff recommends approval of this resolution. LIST OF SUPPORTING DOCUMENTS: Ordinance Industrial District Agreement Template Presentation 1 Ordinance authorizing the establishment of Industrial District No. 8 within the Extraterritorial Jurisdiction of the City of Corpus Christi, Texas; and authorizing Industrial District Agreement with property owners within the Industrial District. WHEREAS, under Texas Local Government Code Chapter 42, Subchapter 42.044, the Governing body of any city has the right, power and authority to designate any part of the area located in its extraterritorial jurisdiction as an Industrial District, and to treat such area from time to time as such governing body may deem to be in the best interest of the City; and WHEREAS, included in such rights and powers of the governing body of any city is the permissive right and power to enter into written agreements with the owner or owners of land in the extraterritorial jurisdiction of a city to guarantee the continuation of the extraterritorial status of such land, and immunity from annexation by the city for a period of time, and other such terms and considerations as the parties might deem appropriate; and WHEREAS, it is the established policy of the City Council of the City of Corpus Christi, Texas (the “City”), to adopt reasonable measures permitted by law that will tend to enhance the economic stability and growth of the City and its environs by attracting the location of new and the expansion of existing industries therein as being in the best interest of the City and its citizens; and WHEREAS, under said policy and the provisions of Section 42.044, Texas Local Government Code, the City of Corpus Christi has enacted Ordinance No. 15898, approved November 26, 1980, as amended, indicating its willingness to enter into industrial district agreements with industries located within its extraterritorial jurisdiction and designating the specified land areas as Corpus Christi Industrial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2; and WHEREAS, in order to correct certain boundary issues, the City Council passed Ordinance No. 029958 to reestablish the boundaries of the land areas known as Corpus Christi Industrial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2 and renamed such areas “Industrial District No. 1” and “Industrial District No. 2”; and WHEREAS, an area of the City’s extraterritorial jurisdiction has been informally referred to as Industrial District No. 3 and the use of such name for a new Industrial District may cause confusion; and WHEREAS, the City Council created Industrial District No. 4 by Ordinance No. 031721 and Industrial Districts No. 5, 6, and 7 by Ordinance No. 031775; and WHEREAS, it is in the best interests of the citizens of the City of Corpus Christi to create an additional industrial district to be named Industrial District No. 8 for a portion of the City’s Extraterritorial Jurisdiction in San Patricio County. 2 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The findings contained in the preamble of this Ordinance are determined to be true and correct and are hereby adopted as a part of this Ordinance. SECTION 2. Industrial District No. 8 is hereby established as described in Metes and Bounds Description of A 116.68 Acre Tract and Exhibit attached hereto and incorporated herein. SECTION 3. The City may create new Industrial Districts, and expand or diminish the size of any Industrial District and the City hereby reserves all rights and powers it may have or acquire to revoke in whole or in part the creation of all or any part of an Industrial District, except to the extent that it has agreed not to do so in any industrial district agreement. SECTION 4. The City Council approves and authorizes industrial district agreements with owners and lessees of land and improvements included within the newly created Industrial District, in substantially the form attached hereto and incorporated herein as Industrial District Agreement. The City Manager, or his designee, is hereby authorized to execute such documents and all related documents on behalf of the City of Corpus Christi. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. 3 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo ________________ Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________ Michael Hunter______________ Roland Barrera ________________ Ben Molina ______________ Rudy Garza ________________ Everett Roy ______________ Paulette M. Guajardo ________________ Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________ ________________________ Rebecca Huerta Joe McComb City Secretary Mayor 1 METES AND BOUNDS DESCRIPTION OF A 116.68 ACRE TRACT Being a 116.68-acre portion of the 142.62-acre tract described in Clerk’s File No. 644302. Said 142.62- acre tract being out of and a part of that certain E.I. Du Pont de Nemours and Company called 651.63- acre tract of land, more fully described and recorded in Volume 426, Page 32 of the Deed and Records of San Patricio County, Texas and that certain called 686.22-acre tract of land, more fully described and recorded in Clerk’s File No. 211990 of the Official Public Records of San Patricio County. Said 142.62-acre tract of land being situated in the T.T. Williamson Survey, Abstract No. 292 and the T.T. Williamson Survey, Abstract No. 293 in San Patricio County, Texas and being more particularly described as follows: COMMENCING at a 1-inch iron rod found in concrete at the intersection of the Southwest line of State Highway No. 361 and the East line of said 686.22-acre tract, THENCE South 01-24-58 East along and with the East line of Said 686.22-acre tract, a distance of 5,042.16 feet to a point; THENCE South 89-59-03 West a distance of 1,433.19 feet to a 1-inch iron rod found in concrete at an Ell Corner of that certain Occidential Electrochemicals Corp. Called 592.751-acre tract of land save and except 54.483 acres, more fully described and recorded in Clerk’s File No. 364008 of said Official Public Records, same being the most Eastern Northeast corner THENCE South 89-59-03 West a distance of 268.553 feet to an point on the City of Ingleside Extraterritorial Jurisdiction (ETJ) and POINT OF BEGINNING of the herein described tract, having coordinates of N: 17,210,472.152 E: 1,390,723.639; THENCE with a circular curve to the Left, having a Delta of 13-40-20, a Radius of 5,332.557 feet, a Chord Length of 1,269.477 feet, and a Chord Bearing of South 01-32-58 East, following the City of Corpus Christi City Limits, and with the said ETJ line, for an angle corner of this tract; THENCE with a circular curve to the Left, having a Delta of 10-26-10, a Radius of 7,890.264 feet, a Chord Length of 1,435.170, and a Chord Bearing of South 30-23-24 West following the City of Corpus Christi City Limits, and with the said ETJ line, for an angle corner of this tract; THENCE South 89-59-22 West, a distance of 251.774 feet departing said ETJ line to a set “X” in concrete for the Southern Southwest corner of this tract; THENCE North 00-00-02 East, a distance of 712.15 feet to a 1-inch iron rod set in concrete being an Ell corner of this tract; THENCE North 89-59-58 West, a distance of 402.10 feet to a corner of this tract; THENCE South 00-00-02 West, a distance of 122.59 feet to a corner of this tract; THENCE North 89-58-33 West, a distance of 66.80 feet to a corner of this tract; THENCE South 00-16-29 East, a distance of 20.40 feet to a corner of this tract; THENCE South 89-27-22 West, a distance of 88.81 feet to a corner of this tract; THENCE North 00-54-54 East, a distance of 6.02 feet to a corner of this tract; THENCE North 89-53-04 West, a distance of 30.88 feet to a corner of this tract; 2 THENCE North 00-13-47 East, a distance of 15.14 feet to a corner of this tract; THENCE South 89-48-03 West, a distance of 67.11 feet to a corner of this tract; THENCE North 46-21-31 West, a distance of 532.53 feet to a corner of this tract; THENCE North 89-53-44 West, a distance of 58.82 feet to a corner of this tract; THENCE North 44-48-39 West, a distance of 280.02 feet to a corner of this tract; THENCE South 74-27-47 West, a distance of 24.39 feet to a corner of this tract; THENCE North 00-07-43 East, a distance of 579.20 feet to a corner of this tract; THENCE North 00-18-29 West, a distance of 1,378.00 feet to a corner of this tract; THENCE North 89-59-36 East, a distance of 150.87 feet to a corner of this tract; THENCE North 00-00-53 West, a distance of 59.73 feet to a corner of this tract; THENCE North 89-59-07 East, a distance of 462.94 feet to a corner of this tract; THENCE South 00-03-13 East, a distance of 21.08 feet to a corner of this tract; THENCE North 89-59-07 East, a distance of 758.06 feet to a corner of this tract; THENCE South 00-00-56 East, a distance of 638.46 feet to a corner of this tract; THENCE North 89-59-03 East, a distance of 898.02 feet to the POINT OF BEGINNING and containing 116.68 acres of land, more or less. 3 1 INDUSTRIAL DISTRICT AGREEMENT No. _____ THE STATE OF TEXAS § COUNTY OF SAN PATRICIO § CITY OF CORPUS CHRISTI § This Industrial District Agreement (“Agreement”) made and entered into under the authority of Section 42.044 of the Local Government Code, by and between the CITY OF CORPUS CHRISTI, TEXAS, a Texas home-rule municipal corporation, hereinafter called the “CITY,” and «LO_Name», a «LO_Entity_State» «LO_Entity_Type», Landowner(s),«IO_Name», a «IO_Entity_State» «IO_Entity_Type», Improvements Owner(s), and «L_Name», a «L_Entity_State» «L_Entity_Type» Lessee, hereinafter collectively called the “COMPANY.” WITNESSETH: WHEREAS, it is the established policy of the City Council of the City of Corpus Christi, Texas, to adopt reasonable measures permitted by law that will tend to enhance the economic stability and growth of the CITY and its environs by attracting the location of new and the expansion of existing industries therein, and such policy is hereby reaffirmed and adopted by this City Council as being in the best interest of the CITY and its citizens; and WHEREAS, the COMPANY is the owner and/or lessee of Land or owner of Improvements on land within the Extra Territorial Jurisdiction of the CITY; and WHEREAS, under said policy and the provisions of Section 42.044, Texas Local Government Code, the CITY has enacted Ordinance No. 15898, approved November 26, 1980, as amended, incorporated for all purposes, indicating its willingness to enter into Industrial District Agreements with industries located within its Extra Territorial Jurisdiction and designating the specified land areas as Corpus Christi Industrial Development Area No. 1 and Corpus Christi Industrial Development Area No. 2; and WHEREAS, the CITY has subsequently reestablished the boundaries of Industrial Districts Nos. 1 and 2 and created Industrial District No. 4 within the CITY’s Extraterritorial Jurisdiction in Nueces County; and WHEREAS, Ordinance No. _______ established the boundaries of the land area known as Corpus Christi Industrial District No. 5 for a portion of the CITY’s Extraterritorial Jurisdiction in San Patricio County; and WHEREAS, the CITY desires to encourage the updating, expansion and growth of industries within said Industrial Districts, and for this purpose, desires to enter into this Agreement with the COMPANY; and WHEREAS, the COMPANY desires to minimize its tax burden and avoid regulation by the CITY of the COMPANY’S structures and properties within such Industrial Districts. 2 NOW, THEREFORE, in consideration of the premises, the mutual agreements of the parties herein contained and under the authority granted under Section 42.044, Texas Local Government Code, and the Ordinances of the City referred to above, the CITY and the COMPANY hereby agree as follows: Article 1 Section 1.01 Immunity from Annexation. The CITY covenants and agrees that during the term of this Agreement, and subject to the terms and provisions herein, the Land shall retain its extraterritorial status as an Industrial District, and shall continue to retain this status until and unless the same is changed under the terms of this Agreement. Except as herein provided, the CITY further covenants and agrees that the Land shall be immune from annexation during the term of this Agreement. Section 1.02 Limited to Industrial Use. COMPANY covenants and agrees that during the term hereof, COMPANY will not use or permit the use of the Land and Improvements covered by this Agreement for purposes not included within the term “industry”. “Industry” as used herein shall mean for the same industrial uses to which the Land, or similarly situated land within the Industrial Districts, is now devoted by the COMPANY or other such parties holding such similarly situated land. Holding the Land and Improvements for future “industry” use, without using same for non-industry purposes, does not violate this paragraph. If the COMPANY uses, or permits use of, the Land and/or Improvements covered by this Agreement for purposes not included within the term “industry” as defined above, the payment in lieu of tax to be paid by the COMPANY under this Agreement shall be increased to an amount equal to one hundred percent (100%) of the amount of ad valorem taxes on Land, Improvements, and personal property sited on the Land that would otherwise be payable to the CITY by the COMPANY if said Improvements were situated on land within the CITY limits of the CITY. The increase shall be immediately effective for all payments from the inception of this Agreement, and the COMPANY shall transmit to the CITY within sixty (60) days of being notified by the CITY of the determination of a non-industry use, subject to the notice provided for in Section 4.04, an amount equal to said one hundred percent (100%) of ad valorem taxes from the inception of this Agreement, less any amounts previously paid, plus penalties and interest as if the amounts were delinquent taxes. The CITY shall be entitled to its attorneys’ fees and other costs in collecting any of these amounts. In addition, the CITY shall have the right, in its sole and absolute discretion: (1) to obtain an injunction from a court of competent jurisdiction, upon the court’s determination that the use is not an “industry” use, requiring that the use be permanently discontinued, or (2) to annex the Land covered by this Agreement and until the Land is annexed, the COMPANY shall continue to make payments equal to said one hundred percent (100%) of ad valorem taxes. Section 1.03 Annexation Corridor. If any other company within the Extra Territorial Jurisdiction of the CITY fails to enter into an Industrial District Agreement with the CITY or defaults on their in lieu of tax payments, and said defaulting company is not contiguous with the CITY’S boundary, the COMPANY shall, after the CITY provides the COMPANY with sixty (60) days prior written notice of intent to initiate annexation proceeding, permit the CITY to annex a suitable strip of land out of the COMPANY’S Land from the CITY’S boundary to the defaulting company’s land to permit its annexation. In the event the CITY must annex a part of the COMPANY’S property in order to annex property owned by third parties, the CITY will annex the absolute minimum amount of the COMPANY’S property legally necessary to annex such property owned by third parties. The location of such annexed property shall be subject to the approval of the COMPANY, such approval shall not be unreasonably withheld. COMPANY and such annexed property shall have no right to any CITY services as a result of such annexation; nor shall the 3 CITY extend, by ordinance, any rules, or regulations, including, but not limited to, those (a) governing plats and subdivisions of land, (b) prescribing any building, electrical, plumbing or inspection code or codes, or (C) attempting to exercise in any manner whatsoever control over the conduct of COMPANY’S business thereon. Such annexed portion of land shall remain a part of this Agreement and shall not be subject to CITY taxes, but shall continue to be included within the in lieu of tax payment. In the event that the need for an annexation corridor no longer exists, including but not limited to the defaulting company entering into an Industrial District Agreement, or has met its obligations to the CITY, the CITY agrees to immediately cease any annexation proceedings related to the annexation corridor over the COMPANY’S Land, or within (60) days, take the steps necessary to complete disannexation proceedings required to remove from the city limits any unnecessary annexation corridor. Section 1.04 City Services. During the term hereof, pursuant to this Agreement, the CITY shall have no obligation to extend to the Land any utility or other CITY services, except for services that are being provided to and paid for by the COMPANY on the date hereof, or as otherwise stated herein. Section 1.05 Fire Protection Services. The CITY may provide fire protection services to the COMPANY at the option of the COMPANY for an additional payment to the CITY as set forth under Section 3.05 hereof. Section 1.06 Compliance with City Rules and Regulations. The CITY and the COMPANY agree that during the term hereof, with respect to the Land, the CITY shall not require compliance with its rules or regulations: (1) governing zoning and platting of the Land, or any additions thereto, outside the CITY limits and in an Industrial District; provided, however, COMPANY further agrees that it will in no way divide the Land or additions thereto without complying with State law and CITY ordinances governing subdivision of land; (2) prescribing any building, electrical, plumbing or inspection code or codes; or (3) prescribing any rules governing the method of operation of COMPANY’S business, except as to those regulations relating to the delivery of utility services and industrial waste disposal through CITY-owned facilities. Section 1.07 Definitions. A. City. As defined in the preamble hereof and includes its successors and assigns. B. Commencement of Construction. Physical construction (including, at a minimum, excavation for foundations or the beginning of installation or erection of improvements) at the primary site of the eligible project has begun. C. Existing Improvements. Improvements that were in use prior to January 1, 2015. D. Extra Territorial Jurisdiction (ETJ). The unincorporated area that is contiguous to the corporate boundaries of the City of Corpus Christi and that is located within five miles of those boundaries. E. Improvements. As defined in Section 1.04(3) of the Texas Tax Code, and shall also include power generation facilities, petroleum and/or chemical refining, processing, extraction or storage facilities, structures, or equipment erected on or affixed to the land, regardless of the land ownership, and pipelines on, under, or across the land which are owned by COMPANY. Includes Existing Improvements and New Improvements. 4 F. Industrial District. The industrial districts created pursuant to any ordinance of the CITY, including any Industrial Districts created for portions of the CITY’S Extraterritorial Jurisdiction in San Patricio County. G. Industrial District Agreement. An agreement made and entered into under the authority of Section 42.044 of the Texas Local Government Code. H. Land. All of the real property owned, leased or possessed by COMPANY and located within the Industrial Districts and designated on Exhibit A attached hereto. I. Market Value. As determined and defined by SPCAD. J. New Improvement. Improvement for which no government permit has been secured and for which construction had not commenced prior January 1, 2015. K. Placed in Use. Improvements that are completed and Placed in Use and are not listed by SPCAD as Construction Work in Progress (CWIP). L. SPCAD. The San Patricio County Appraisal District and includes its successors and assigns. Article 2 Section 2.01 Term. The term of this Agreement shall begin on January 1, 2019 and continue until December 31, 2024, unless terminated as herein provided or extended for additional period or periods of time upon mutual consent of the COMPANY and the CITY as provided by the Local Government Code; provided however, if this Agreement is not extended, or replaced with a similar agreement that provides for an additional period or periods of time, on or before March 31 of the final calendar year of the term hereof, then the immunity from annexation granted herein shall terminate on that date, but all other terms of this Agreement shall remain in effect for the remainder of the term; provided, however, the effective date and time of annexation shall be no earlier than midnight of December 31 of the final year of the term. Section 2.02 Extended Term. This Agreement may be extended for an additional period or periods only by written agreement between the CITY and the COMPANY. Article 3 Section 3.01 Payment in lieu of Ad Valorem Taxes. Each year during the term hereof, the COMPANY shall pay to the CITY: A. Land. An amount in lieu of tax on the Land (excluding Improvements and personal property located thereon) equal to one hundred percent (100%) of the amount of ad valorem taxes based upon the Market Value of the Land which would otherwise be payable to CITY by COMPANY if the Land were situated within the CITY limits. 5 B. Existing Improvements. An amount in lieu of tax on Existing Improvements (excluding personal property) located on the Land equal to sixty-two and one half percent (62.5%) of the amount of ad valorem taxes based upon the Market Value of the Existing Improvements which would otherwise be payable to the CITY by the COMPANY if said Existing Improvements were situated on land within the CITY limits. C. New Improvements. With respect to any New Improvements, the in lieu of tax payment shall be phased in as follows: for the first four years after the New Improvement is Placed in Use, the COMPANY shall pay no in lieu of tax payment to the City for said New Improvement. Commencing with the fifth calendar year after the New Improvement is Placed in Use, the in lieu of tax payment shall be equal to sixty two and one half percent (62.5%). The first year of use for purposes of this New Improvements payment shall be deemed to begin on the first day of January following the date when the New Improvements are Placed in Use. D. With respect to any new land acquired by the COMPANY located within an Industrial District, the use of which relates directly to the primary use of the parent tract, the new land shall be included in the COMPANY’S land known as the Land, and shall be considered in calculating the in lieu of tax payment on the Land as of January 1 of the first year following the date which the new land is acquired by the COMPANY. Within ninety (90) days after the acquisition of new land by the COMPANY, the COMPANY shall provide the CITY with a revised Exhibit A that includes a complete listing by SPCAD Geographic ID number of the newly acquired land. E. With respect to any new land acquired by the COMPANY after January 1, 2015, located within the Extra Territorial Jurisdiction of the CITY, the use of which does not relate to the primary use of the parent tract, the COMPANY shall report such purchase to the CITY and the CITY shall determine whether an Industrial District Agreement is desired for such newly acquired land. Section 3.02 Company Schedule of Value. On or before August 31 of each year of this Agreement, or upon final determination of Market Values by SPCAD, whichever is later, the COMPANY shall provide to the CITY an itemized Schedule of Value by sworn affidavit, on the form attached hereto as Exhibit B, listing all SPCAD Geographic ID numbers and the values related thereto, and showing all Land and Improvements, owned or controlled by the COMPANY including and identifying the property to be valued as part of this Agreement (the “Schedule”). The Schedule shall also list the year any Improvements were Placed in Use. The COMPANY has no objection to the CITY’S review of all forms, information, and documents provided by the COMPANY to SPCAD and, in the event of appeal, the Appraisal Review Board. Failure to provide the Schedule to the CITY shall constitute a breach of this Agreement. Section 3.03 Determination of Value. In determining the COMPANY’S annual in lieu of tax payment required under this Agreement, the calculation shall be made utilizing the Market Value of all Land and Improvements as determined by SPCAD, or its successor, under provisions of the Texas Property Tax Code. The COMPANY shall timely provide information and reports required under this Agreement and under Texas law, rules and regulations to SPCAD or its designee, so that the appraisal process can be completed in accordance with all applicable state laws. Section 3.04 Company Protest of Value or Billing. If the COMPANY elects to protest the valuation set on any of its properties by SPCAD for any year or years during the term hereof, it is agreed that nothing in this Agreement shall preclude the protest, and the COMPANY shall have the right to take all legal steps desired to reduce the same as if the property were located within the CITY, except with regard to the 6 exemptions in Section 3.06 below. The COMPANY shall notify the CITY of its appeal within 30 days after its protest of the valuation is submitted to SPCAD. Notwithstanding any protest of valuation by the COMPANY or any non SPCAD related billing dispute, the COMPANY agrees to pay to the CITY an initial in lieu of tax payment, on or before the Due Date in Section 3.07 below, based on the amount billed by the CITY. When the valuation on said property or any billing dispute has been finally determined, either as the result of final judgment of a court of competent jurisdiction or as the result of other final settlement of the controversy, then within thirty (30) days thereafter, the COMPANY shall make to the CITY any additional payment due based on the final determination. If, as a result of final judgment of a court of competent jurisdiction, or as the result of other final settlement of the controversy, the amount of in lieu of tax payment due to the CITY is established to be an amount less than the amount of the initial in lieu of tax payment for that year paid by the COMPANY, the excess in lieu of tax payment, if any, collected by the CITY shall be returned to COMPANY within thirty (30) days after said final determination. Any non SPCAD related billing disputes shall be resolved by the CITY within ninety (90) days from the date notice of the dispute is received by the CITY. Section 3.05 Fire Protection. An additional amount for city fire protection equal to fifteen percent (15%) of the amount which would be payable on 100% of Market Value of Improvements located on the Land will be paid annually; provided, however, that if and as long as the COMPANY, as of January 1 of each year, is a member in good standing of the Refinery Terminal Fire Company, or its successor, or the COMPANY agrees to provide fire protection and emergency services either from a qualified external provider or by use of a qualified internal emergency response organization, it shall not be obligated to pay the additional amount provided by this Section 3.05. Minimum qualifications would include meeting certain standards as defined by applicable OSHA, state regulatory and NFPA Standards that apply to fire control, emergency management, disaster planning and rescue services as recognized by the Texas Industrial Fire Training Board, the State Fireman’s and Fire Marshal’s Association of Texas or equivalent. The COMPANY will provide equipment, training, and facilities necessary to safely handle all expected emergencies and properly protect the COMPANY and the community from the adverse effects of an industrial disaster, which obligation may be satisfied by the COMPANY being a member in good standing of the Refinery Terminal Fire Company, or its successor. (Calculation: Market Value of Improvements x 15% x City Tax Rate = Fire Protection Fee) Section 3.06 Calculation of Amount Due. The CITY shall mail an invoice to the COMPANY, which sets forth the amount of payment in lieu of tax owed to the City calculated in accordance with this Agreement. Such invoice shall be postmarked at least thirty (30) days prior to the Due Date defined in Section 3.07 below, and shall be mailed to the address shown in Section 10.03 of this Agreement. The calculation shall be made without reference to the exemption for pollution control property in Section 11.31, Texas Property Tax Code, and Article VIII, Section 1-l, Texas Constitution, as same presently exist or may be hereafter amended, using the Market Value of pollution control equipment certified by SPCAD. In addition, all the amounts shall be calculated without reference to any new tax exemption or any increase in an existing tax exemption enacted after January 1, 1995. Section 3.07 Payment. The COMPANY agrees to pay to the CITY on or before January 31 of the year following each year during the term hereof (the “Due Date”), all payments in lieu of tax provided for hereunder and invoiced by the CITY in accordance with Section 3.06 above, without discount for early payment. The present ratio of ad valorem tax assessment used by the CITY is one hundred percent (100%) of the Market Value of property. Any change in the ratio used by the CITY shall be reflected in any 7 subsequent computations hereunder. This Agreement, and the method of determining and fixing the amount of in lieu of tax payments hereunder, shall be subject to all provisions of law relating to determination of Market Value and taxation, including, but not limited to, laws relating to rendition, assessment, equalization and appeal. Any invoiced amounts that are not paid by the Due Date shall be considered delinquent. Delinquent amounts shall be immediately subject to interest at twelve (12%) per annum, compounded monthly and the COMPANY shall reimburse the CITY for its costs of collections, including reasonable attorneys’ fees. Article 4 Section 4.01 Company Failure to Pay/Company Breach. If the COMPANY fails to make a payment due to the CITY hereunder or if the COMPANY fails to perform any other obligation incumbent upon the COMPANY to be performed hereunder, and if such default is not fully corrected within sixty (60) days after the CITY gives written notice of said default to the COMPANY (or, if within such 60 day period, the COMPANY has not demonstrated a satisfactory plan of compliance approved by the CITY (where compliance requires more than 60 days)), the City shall have the option to either (1) declare this Agreement terminated and immediately commence annexation proceedings and sue to recover all damages; (2) bill COMPANY and sue to recover 100% of all monies that the CITY would have received from the COMPANY if it had been within the CITY limits, which includes 100% of all taxes, attorneys’ fees and court costs; or (3) continue this Agreement for its term and collect the payments required hereunder. Section 4.02 Lien. The CITY shall be entitled to and have a tax lien on the Land and Improvements which may, in the event of default in payment of any sum due hereunder that is not cured in accordance with Section 4.04 below, be enforced by CITY in the same manner as provided by law and for the collection of delinquent ad valorem taxes. Additionally, the CITY shall be entitled to and have a contractual lien on the Land and Improvements which may be foreclosed in the event of such uncured default (1) judicially or (2) extra-judicially in the same manner as a deed of trust under Texas Property Code, and for that purpose may appoint a trustee or trustees. Section 4.03 City Breach. If the CITY breaches this Agreement by annexing or attempting to pass an ordinance annexing any of the Land (except with reference to the agreed annexation corridor in Section 1.03), the COMPANY shall be entitled to enjoin the CITY from the date of its breach for the balance of the term of this Agreement, from enforcing any annexation ordinance adopted in violation of this Agreement and from taking any further action in violation of this Agreement. If the COMPANY elects to pursue this remedy, then so long as the CITY specifically performs its obligations hereunder, under injunctive order or otherwise, the COMPANY shall continue to make the annual payments required by this Agreement. Section 4.04 Notice of Default. Notwithstanding anything to the contrary contained herein, in the event of any breach by the COMPANY of any of the terms or conditions of this Agreement, the CITY shall give the COMPANY written notice specifying the nature of the alleged default, and manner in which the alleged default may be satisfactorily cured. Thereafter, the COMPANY will be afforded sixty (60) days within which to cure the alleged default (or, if cure requires more than 60 days, the COMPANY shall have the right to demonstrate a satisfactory plan of cure approved by the CITY within such 60 days, which shall be deemed to be a cure so long as the COMPANY is diligently pursuing such plan). 8 Section 4.05 Cumulative Remedies. The remedies provided herein are cumulative, none is in lieu of any other, and any one or more or combination of the same is available. Each party, in addition to remedies expressly provided herein is entitled to any and all other remedies available at law or in equity. Section 4.06 No Waiver of Rights and Remedies. It is expressly understood that if at any time the COMPANY is in default in any provision of this Agreement, the failure on the part of the CITY to promptly avail itself of the rights and remedies that the CITY may have, will not be considered a waiver on the part of the CITY; provided that if the CITY within ten (10) years from the date of any default by the COMPANY, does not avail itself of the rights or remedies or elect to terminate this Agreement on account of such default, then such default is deemed waived. Further, is expressly understood that if at any time the CITY is in default in any provision of this Agreement, the failure on the part of the COMPANY to promptly avail itself of the rights and remedies that the COMPANY may have, will not be considered a waiver on the part of the COMPANY; provided that if the COMPANY within ten (10) years from the date of any default by the CITY, does not avail itself of the rights or remedies or elect to terminate this Agreement on account of such default, then such default is deemed waived. Section 4.07 Limitation of Liability. To the fullest extent permitted by law, and not withstanding any other provision of this Agreement, in no event will either party be liable to the other party hereunder for punitive, exemplary, or indirect damages, lost profits or business interruptions damages; provided however, this limitation in not meant to limit the CITY’S rights under this Agreement to collect from the COMPANY any unpaid in lieu of tax payments, late penalties and interest associated therewith, and any costs of collection including but not limited to attorney fees. Article 5 Section 5.01 Description of Property. The COMPANY agrees to provide the CITY with a listing of Geographic ID numbers, as available from SPCAD or its successor, to be attached hereto and incorporated herein as Exhibit A. With respect to COMPANY’S acquisition of new land, as described in Section 3.01 F, which becomes included in the Land, COMPANY agrees to provide to CITY a listing of Geographic ID numbers as available from SPCAD or its successor. Article 6 Section 6.01 Annexation By Another Entity. If any attempt to annex any of the Land owned, used, occupied, leased, rented or possessed by COMPANY, is made by another municipality, or if the incorporation of any new municipality should attempt to include within its limits the Land or property, the CITY shall seek a temporary and permanent injunction against the annexation or incorporation, with the cooperation of the COMPANY, and shall take any other legal action necessary or advisable under the circumstances. The cost of the legal action shall be borne equally by the parties hereto; provided, however, the fees of any special legal counsel shall be paid by the party retaining same. Section 6.02 Termination. If the CITY and the COMPANY are unsuccessful in obtaining a temporary injunction enjoining the attempted annexation or incorporation described in Section 6.01 above, the COMPANY shall have the option of (1) terminating this Agreement, effective as of the date of the annexation or incorporation, or (2) continuing to make the in lieu of tax payment required hereunder. This option shall be exercised within thirty (30) days after the application for the temporary injunction is 9 denied. If the COMPANY elects to continue the in lieu of tax payment, the CITY shall place future payments hereunder together with part of the payment for the calendar year in which the annexation or incorporation is attempted, prorated to the date the temporary injunction or relief is denied, in a separate interest-bearing escrow account which shall be held by CITY subject to the following: A. If final judgment (after all appellate review, if any, has been exhausted) is entered denying a permanent injunction and/or upholding the annexation or incorporation, then all these payments and accrued interest thereon shall be refunded to the COMPANY; or B. If final judgment (after all appellate review, if any, has been exhausted) is entered granting a permanent injunction and/or invalidating the annexation or incorporation, then all the payments and accrued interest thereon shall be retained for use by the CITY. Article 7 Section 7.01 Sale or Lease. Whenever the COMPANY sells all or a portion of the Land or Improvements to any entity that is not an affiliate of the Company, unless such affiliate will be responsible for payment hereunder, the COMPANY shall within ninety (90) days give notice to the CITY of said sale, and this Agreement shall continue in effect as to all Land and Improvements sold. If COMPANY sells only a portion of the Land or Improvements, the COMPANY shall furnish to the CITY a revised Exhibit A effective for the calendar year next following the calendar year in which the conveyance occurred. If the COMPANY leases all or a portion of the Land or Improvements to an entity that will be responsible for payment hereunder, the COMPANY shall within ninety (90) days give notice to the CITY of said lease, and this Agreement shall continue in effect as to all Land and Improvements leased. Section 7.02 Company’s Responsibility for Payment. The COMPANY as seller or lessor in a transaction pursuant to Section 7.01 above, shall remain solely responsible for any payment in lieu of tax attributable to the Land or Improvements sold or leased unless the COMPANY has entered into an assignment and assumption agreement with the buyer or lessee of such Land or Improvements, which shall be consented to by the CITY, in which the buyer or lessee assumes all responsibilities and obligations under this Agreement as to the purchased or leased Land and/or Improvements. Section 7.03 Assignment. This Agreement may be assigned by the COMPANY. If this Agreement is assigned, the COMPANY shall notify the CITY of such assignment within thirty (30) days. Article 8 Section 8.01 Inurement. This Agreement shall inure to the benefit of and be binding upon the CITY and the COMPANY, and shall inure to the benefit of and be binding upon the COMPANY’S successors and assigns, affiliates and subsidiaries, and, subject to Section 7.02, shall remain in force whether the COMPANY sells, assigns, or in any other manner disposes of, either voluntarily or by operations of law, all or any part of the Land, and the agreements herein contained shall be held to be covenants running with the Land for so long as this Agreement or any extension thereof remains in force. The word “affiliates” as used herein shall mean: (1) all companies with respect to which the COMPANY directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50%) or more of the stock having the right to vote for the election of directors; or (2) all corporations (or other entities) controlled by or under common control with the Company as contemplated by Section 1239(c) of the Internal Revenue Code of 1954, as amended. 10 Article 9 Section 9.01 Buy Local. COMPANY shall use reasonable efforts to acquire all of its procurements, including, but not limited to, supplies, materials, equipment, service contracts, construction contracts, and professional services contracts from businesses located within Nueces and San Patricio Counties, unless such procurements are not reasonably and competitively available within said area. COMPANY shall not be required to maintain records regarding this requirement other than those normally kept in its usual course of business. Section 9.02 Water Procurement. COMPANY acknowledges that the CITY provides a regional water system that is critical to the well-being and economic growth of the entire area and that it is important for each customer to continue to use the system as its principal source of water. COMPANY agrees to provide six months written notice of any intent or action to obtain more than ten percent (10%) of its total water needs from any source other than the CITY. Article 10 Section 10.01 Severability. In the event any word, phrase, clause, sentence, paragraph, section, article or other part of this Agreement or the application thereof to any person, firm, corporation or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, then the application, invalidity or unconstitutionality of the word, phrase, clause, sentence, paragraph, section, article or other part of this Agreement shall be deemed to be independent of and separable from the remainder of this Agreement and the validity of the remaining parts of this Agreement shall not be affected thereby. Section 10.02 Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any and all prior understandings, or oral or written agreements, between the parties respecting such subject matter, except as otherwise provided in the instruments referenced herein. This Agreement may be amended only by written instrument signed by all of the parties hereto. Section 10.03 Notices. Any notice to the COMPANY or the CITY concerning the matters to which this Agreement relates may be given in writing by registered or certified mail addressed to the COMPANY or the CITY at the appropriate respective addresses set forth below. The COMPANY must notify the CITY of any change of address in writing. Notices by a party to the other party hereto, shall be mailed or delivered as follows: To the City: City Manager City of Corpus Christi 1201 Leopard P.O. Box 9277 Corpus Christi, Texas 78469-9277 Phone: 361-826-3220 Fax: 361-826-3845 With copies to: City of Corpus Christi-City Secretary 11 1201 Leopard P.O. Box 9277 Corpus Christi, Texas 78469-9277 Phone: 361-826-3105 Fax: 361-826-3113 City of Corpus Christi-City Attorney 1201 Leopard P.O. Box 9277 Corpus Christi, Texas 78469-9277 Phone: 361-826-3360 Fax: 361-826-3239 If to Company: «LO_Name» «LO_Notice_Address» «LO_Notice_City» Phone: «LO_Notice_Phone» Fax: «LO_Notice_Fax» With copies to: «IO_Name» «IO_Notice_Address» «IO_Notice_City» Phone: «IO_Notice_Phone» Fax: «IO_Notice_Fax» «L_Name» «L_Notice_Address» «L_Notice_City» Phone: «L_Notice_Phone» Fax: «L_Notice_Fax» «Copies_Name» «Copies_Address» «Copies_City» Phone: «Copies_Phone» Fax: «Copies_Fax» Section 10.04 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. This Agreement is to be performed in Nueces County, Texas. Section 10.05 Counterparts. This Agreement may be executed in multiple counterparts, each of which is deemed an original, and all of which taken together, shall constitute but one and the same instrument, which may be sufficiently evidenced by one counterpart. 12 Section 10.06 Authority. By acceptance of this Agreement and/or benefits conferred hereunder, each party represents and warrants to the other that its undersigned agents have complete and unrestricted authority to enter into this Agreement and to obligate and bind such party to all of the terms, covenants and conditions contained herein. Section 10.07 Most Favored Nations. If CITY enters into a new Industrial District Agreement, or a renewal of any Industrial District Agreement, with a landowner which contains in lieu of tax payment terms and provisions more favorable to the landowner than those in this Agreement, COMPANY and its assigns shall have the right to either terminate this Agreement, or amend this Agreement to contain the more favorable in lieu of tax payment terms and provisions. “Landowner” shall not include any tourist- related business or facilities under Section 42.044, Texas Local Government Code. The foregoing does not preclude the CITY from entering into a onetime, economic development agreement with any new major employer within the City’s non-industrial district ETJ, or with any company proposing a major new investment within the City’s non-industrial district ETJ, as part of the CITY’S economic development program. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 13 ENTERED into this _____ day of_______________________, 2019. ATTEST: CITY OF CORPUS CHRISTI _________________________________ Rebecca Huerta, City Secretary _________________________________ Peter Zanoni, City Manager LEGAL FORM APPROVED _____ of ________________________, 2019. _________________________________ Aimee Alcorn-Reed Assistant City Attorney FOR CITY ATTORNEY CITY OF CORPUS CHRISTI ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF NUECES § This instrument was acknowledged before me on_________________________________, 2019, by Peter Zanoni, City Manager of the City of Corpus Christi, a Texas home-rule municipal corporation, on behalf of said corporation. __________________________________________ Notary Public, State of Texas Printed Name: ______________________________ My Commission expires: ______________________ 14 ATTEST: IMPROVEMENTS OWNER AND LESSEE «IO_Name» _________________________________ By: ______________________________ Name: _____________________________ Name: «IO_Signatory» Title: ______________________________ Title: «IO_Signatory_Title» IMPROVEMENTS OWNER AND LESSEE ACKNOWLEDGMENT THE STATE OF ________________________ § COUNTY OF __________________________ § This instrument was acknowledged before me on ____ day of ______________________, 2019, by «IO_Signatory», as the «IO_Signatory_Title» of «IO_Name», a «IO_Entity_State» «IO_Entity_Type», on behalf of said corporation. Given under my hand and seal of office this ____ day of __________________, A.D., 2019. ___________________________________ Notary Public, State of_____________________ Printed Name:____________________________ My Commission expires: ___________________ Creation of Industrial District #8 in San Patricio County and Form Industrial District Agreement Council Presentation July 16, 2019 1 2 Proposed Industrial District No. 8 For Chemours Industrial District #8 (Chemours) DATE:July 1, 2019 TO:Peter Zanoni, City Manager FROM:Arlene Medrano, Business Liaison ArleneM@cctexas.com (361) 826-3356 CAPTION: Ordinance approving the amendment to the Tax Increment Reinvestment Zone #2 Amended Project & Financing Plans approved by the Board of Directors of Reinvestment Zone Number Two, Corpus Christi, Texas, on June 10, 2019. PURPOSE: The purpose of this item is to amend the TIRZ #2 Project Plan and Financing Plan. BACKGROUND AND FINDINGS: On March 21, 2000, the Corpus Christi City Council authorized the preparation of a preliminary financing plan for a Tax Increment Financing District and associated Tax Increment Reinvestment Zone #2 covering portions of North Padre Island and Mustang Island. The dollars claimed by the Tax Increment Financing District were to provide the local share of the North Padre Island Storm Damage Reduction and Environmental Restoration Project carried out by the U.S. Corps of Engineers and now known as the Packery Channel. The TIRZ #2 is a reinvestment zone pursuant to Chapter 311 of the Texas Tax Code. All expenditures of the TIRZ #2 must be consistent with Chapter 311 and must be recommended by the Board. The TIRZ #2 was created by Ordinance 024270, which charges the Board with making recommendations to City Council concerning the administration and expenditures of the Zone and preparing and recommending the Plan. The specific amendments, dated June 10, 2019, can be found in the attachment titled Exhibit H (Project Plan). Amendments include project status updates and the following: This amendment dated June 10, 2019 will accomplish the following: Ordinance approving amendment to TIRZ #2 Project and Financing Plan AGENDA MEMORANDUM First Reading Ordinances for the City Council Meeting 07/16/2019 Consent Agenda for the City Council Meeting 07/23/2019 1. Project #11- Packery Channel Pavilion (Phase 5) Requesting a budget increase in the amount of $23,000. 2. Project #14- Periodic Survey of Channel Conditions and Shoreline- Correcting a typo from the January 22, 2019 amendment. Requesting authorization to expend up to $286,000 for the following. January’s Project Plan only listed the $205,000 while the agenda memo listed $286,000. Total must be correct in the Project Plan document. a. $54,000 for Packery Channel Monitoring Project (abbreviated bathymetric channel survey by Texas A&M University Corpus Christi). Work Complete. b. $27,000 Packery Channel Monitoring Program Review for Mott McDonald c. $205,000 for Annual Full Survey (Peak Summer) by Texas A&M University Corpus Christi. 3. NEW! Project #18- Contingency Fund Requesting a budget increase in the amount of $100,000 for contingencies for all projects. No budget amendment is required. Funding levels in the CIP 3278 are currently sufficient to support these expenditures. ALTERNATIVES: City Council could choose not to approve this ordinance. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: Council authorization to approve an ordinance. EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Legal City Manager’s Office FINANCIAL IMPACT: □Operating □ Revenue □ Capital x Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments: None RECOMMENDATION: Staff recommends approval of this ordinance. LIST OF SUPPORTING DOCUMENTS: Ordinance TIRZ #2 Project and Financing Plan Exhibit H Ordinance approving the amendment to the Tax Increment Reinvestment Zone #2 Amended Project & Financing Plans approved by the Board of Directors of Reinvestment Zone Number Two, Corpus Christi, Texas, on June 10, 2019. WHEREAS,in 2000, through Ordinance 024270, the City of Corpus Christi created a tax increment financing district, to be known as “Reinvestment Zone Number Two, City of Corpus Christi, Texas,” over a portion of the City on Padre Island; WHEREAS,Ordinance 024270 included a preliminary reinvestment zone financing plan; WHEREAS, on September 29, 2009, the City Council passed Ordinance 028329, which approved the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, Texas (the “Plan”); WHEREAS, the Plan was last amended on April 16, 2019; WHEREAS, on June 10, 2019, the Board of Directors of Reinvestment Zone Number Two took action to approve amendments to the Plan; WHEREAS, Texas Tax Code Section 311.011(d) provides that the governing body of the municipality that designated the zone must approve a project plan or reinvestment zone financing plan after its adoption by the Board and the approval must be by ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council approves the amendment to the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, Texas (“the Plan”) for the Reinvestment Zone Number Two, Corpus Christi, Texas, as approved by the Board of Directors of Reinvestment Zone Number Two on June 10, 2019. A copy of the Plan is attached hereto and incorporated. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS 1 Packery Channel South Parking Lot Improvements This project consisted of the demolition of existing facilities,construction of approximately 11,500 square yards of new flexible pavement,parking lot,two concrete driveways,minor water and wastewater improvements,landscaping improvements, lighting improvements, and concrete pedestrian ramp. $640,447 Completed March 2006 Projects Include: Packery Channel Monitoring FY 2008-2009 Complete Packery Channel Monitoring FY 2009-2010 Complete Packery Channel Monitoring FY 2010-2011 Complete 2 Packery Channel South Parking Lot, Landscaping Phase 2 This project consisted landscaping and irrigation improvements to the newly constructed 300-space parking area including the construction of new planting islands with mexican fan palms, sea grape trees, decorative rock and irrigation. $145,461 Completed March 2008 3 Packery Channel Boat Ramp Parking Lot / Access Road This project consisted of the construction of approximately 17,000 square yards of HMAC flexible pavement parking facility adjacent to the existing Packery Channel Boat Ramp;construction of an access road and related signage and pavement markings, and the installation of 1,000 square yards concrete reinforced pavement adjacent to boat ramp,concrete bollards;minor drainage improvements;3,500 linear feet of electrical conduits; and minor landscaping. $1,053,176 total project cost. $549,216 from TIRZ #2 Completed July 2009 4 Packery Channel Boat Ramp Dredging This project consisted of dredging approximately 17,800 cy of the Packery Channel Boat Ramp and adjacent area.The work included environmental control measures to prevent erosion and allow for discharge of water from the dredging operations to discharge into the surf of the Gulf of Mexico.Minor amount of stone were installed at the boat ramp to enhance shoreline protection. $431,377 Completed April 2010 5 Packery Channel South Parking Lot Restroom (Phase 1) This project included the construction of restroom facilities at the South Parking Lot at the beach seawall on Windward Drive.The project included separate men and women facilities to with showers, toilets, changing stations, outdoor seating area, and native landscaping. $460,743 Completed July 2010 6 Packery Channel Parking Lot and Overlooks (Phase 2) This project consisted of improvements along the north and south sides of Packery Channel including seven overlook structures,parking lot,access road,pedestrian walkways,storm water structures lighted bollards with electrical receptacles,lighting,landscaping,concrete benches and repairs to shoreline structures. $2,869,224 Completed March 2012 7 Packery Channel Aids to Navigation / Signage This project consisted of lighting improvements to Packery Channel as required for safety and security along with signage to mark no wake zones. Per ISAC, additional funds needed to replace signs following Hurricane Harvey. $64,500 Completed December 2012 7a Packery Channel Aids to Navigation / Signage - Hurricane Harvey Repairs Per ISAC, additional funds needed to replace signs completed in Project 7 following Hurricane Harvey. Revised 2/20/18 $65,000 $7,166 Completed April 2019 PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 page 1 of 3 6/3/2019 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 8 Packery Channel Restroom Facilities (Phase 3) This project consists of the purchase and installation of a mobile restroom on the north side of the Packery Channel and adjacent parking lot.The project also includes turn-around and connector to Zahn Road.A mobile trailor restroom on the south side of Packery Channel with wastewater lift station and wastewater 2-inch force main (approximately 2,500 linear feet long)is also being planned.Priority Item.P&R recommends self contained,solar powered mobile units to be placed at Packery Channel Parking Lot,end of Zahn Road and on South side of PC (at a location yet to be determined)Build and Install portable restroom shelters to hold portable restroom units at various locations.Build and Install Portable Shower units on the North and South side of Packery Channel.Board approval of 4 portable restroom facilities at $65,000 each plus 20%contingency and shower facilities at $100,000 total. Revised 2/13/2018 $412,000 $402,000 Solar Powered Units: Complete. Showers: Partial Water line installed Spring '18. Waiting on BCC permit. 9 Packery Channel Ramps to Jetties (Phase 4) This project includes ADA beach access on the north side and the south side or the channel to provide access from the beach to the restroom,lookouts and parking lots.This project will include the ADA approved mobi-mats on the north side and the south side of Packery Channel to provide access from the beach to the restrooms,lookouts and parking lots.This project was designed as part of the Phase 2 project for parking and overlooks.Priority ITem:P&R recommends a new design for structures since the GLO will not approve construction of parking lots on the beach.For Mobi-Mats per ISAC recommendation. Revised 2/20/18 $35,000 $8,979 Complete 10 Packery Channel Dredging and Beach Nourishment - 2012 The project consisted of dredging approximately 264,300 cubic yards of beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline to the south of Packery Channel,and 15,000 cubic yards of sand from the north to south end of the N.Padre Island Seawall.Dredging schedule to be determined by results of annual study of channel. $1,820,843 Last Completed March 2012 10a Packery Channel Dredging and Beach Nourishment - 2020 The project consisted of dredging beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline.Dredging schedule to be determined by results of annual study of channel. $350,000 In permitting process. Waiting to hear from USACE. page 2 of 3 6/3/2019 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 11 Packery Channel Pavilion (Phase 5) This project includes the pavilion expansion adjacent to the north side restroom or north side boat launch.This will allow the deck area around the restroom and some sitting areas for visitors. Design will begin in FY 2016 and construction will follow in FY 2017 dependent upon available funding.P&R recommends further discussion on this item to determine if another amenity would better suit the area.ISAC recommends Pavillion staged at the boat ramp parking lot as well as pavillion like structure on north and south side of the jetty. Revised 2/20/18 $250,000 Requesting Addt'l $23,000 Estimated completion: Fall 2019. At 90% Design 14 Periodic Survey of Channel Conditions and Shoreline Packery Channel monitoring began in 2003 by Texas A&M Division of Nearshore Research by the U.S.Army Corps of Engineers.They ceased monitoring efforts in 2007 and the City assumed monitoring in 2008.The program includes the collection of bathymetric data in Packery Channel and the surrounding nearshore,measurement of elevation along the adjacent beach and inland channel segment (shoreline position),elevation measurements across the Mollie Beattie Coastal Habitat Community, and measurement of current velocity in the inland channel segment. Increase from $205,000 to $286,000 $1,847,312 (Lifetime Expenses to Date) 2018 monitoring complete. 2019 Contract Executed 3/29/19. 15 Packery Channel Revetment Repair Storm surge, strong currents, and waves from Hurricane Harvey caused damage to the slope protection and adjacent appurtenances along the banks of Packery Channel between the SH 361 bridge and the Gulf of Mexico. Repair concepts will be developed for two alternatives; one to return the project to its approximate pre-storm conditions, and another to upgrade the project to an improved condition that is more resilient to future storm impacts. The City will procure a design consultant through the RFQ process, and the selected firm will prepare the construction plans. Post design, construction will be procured. Added 2/13/18 $600,000 $417,027 60% submittal under review. 16 Park Road 22 Bridge On February 21, 2017, the TIRZ #2 board met and approved the amendment of using funds from TIRZ #2 to support the construction of two one-way bridges spanning Park Road 22. City Council approved this amendment on February 20, 2018. Added 2/20/2018 $4,000,000 $0.00 Waiting for developer on canals. 17 Beach Crosswalk at St. Augustine & Windward Dr. Per request of the Island Strategic Action Committee: Traffic improvement on Windward Drive at Saint Augustine Drive, for pedestrian crossing on Windward Drive to facilitate access to and from Michael J. Ellis Beach. Scope of work includes: crosswalk, access ramps, traffic signs, and pavement markings. Estimated costs are $23,000 for the crossing and associated traffic improvements; $9,000 for solar powered flashing LED crossing signs. $32,000 $20,331.00 Completed February 2019. 18 Feasibility Study Per Texas Tax Code Sec. 311.011. Project and Financing Plans. (c) Reinvestment zone financing plans must include (3) a finding that the plan is economically feasible and an economic feasibility study.$50,000 $33,173 Draft Complete 19 Contingency for all Projects Project contingency fund for all projects. $100,000 page 3 of 3 6/3/2019 ReinvestmentZoneNumberTwoCityofCorpusChristiTexasProjectPlanandReinvestmentZoneFinancingPlanFebruary252003 ReinvestmentZoneNumberTwoCityofCorpusChristiTexasFebruary252003ProjectPlanandReinvestmentZoneFinancingPlanIntroductiontoTheProjectandFinancePlanGeneralBackgroundAsrequiredunderthcTaxIncrementFinancingActChapter311TexasTaxCodetheTWActtheBoardofDirectorstheZoneBoardofReinvestmentZoneNumberTwoCityofCorpusChristiTexastheZonehaspreparedthisProjectPlanandReinvestmentZoneFinencmgPlanthePlanTheCityCounciloftheCityofCorpusChristTexastheCityandtheZoneBoardmustbothadoptthisPlanThcPlanincludesinformationconcerningproposedlandusesanddevelopmentestimatedprojectandnonprojectcostsandadminisWativcxpensesengineeringstudiesproposedfinancingandeconomicfeasibilitydataandpropertyappraisaldataThePlanincludesfinancingOfthcZonesportiofioftheNorthPadreIslandStormDamageReductionandEnvironmentalRestorationProjecttheProjectThisPlansetsoutthedetailsofthctaxandeconomicbenefitsderivedfxomdevelopmentoftheProjectSitethescopeofthcProjectandthefinancingstrategforfundingofProjectcoststhroughthcissuanceofbondsCompletecopiesofthcPlanincludingarortattachedtothisPlanasExhibitAentitledForecastofPotentialTIFRevenueFlowsonNorthPadreIslandpreparedbyEconomicsReseahAssociatesERAwhichconstitutestheeconomicfeasibilitystudyrequiredbytheTIFActareavailablefixmtheCityofCorpusChristiTexas1201LeopardStreetCorpusChristiTexas78401AttentionCitySecretaryNorthPadreIslandStormDumageReductionandEnvironmentnlRestorationProjectTheProjectisaprojectoftheUSArmyCorpsofEngineerstheCorpstodredgeandchannelizoareopenedwaterwayPackeyChannelbetweentheLagunaMadreIntracoastalWaterwayandtheGulfofMexicoInadditiontothePackeryChanneltheProjectincludesconstructionbytheCorpsoftwo1400footjettiesparallelingthePacketyChannelOfthetotal30000000projectedcostoftheProjecttheCityasProjectsponsorhasagreedtopay105millionTheremainingProjectcostsaretobepaidbytheUnitedStatesGovernmentTheCityhascreatedtheZoneforthepurposeofraisingfundsneededtoprovidetheZoneProjectcoststhroughtheissuanceofbondsbyriteNorthPadreIslandDevelopmentCorlxrafientheIssueanetforprofitlocalgovernmentcorporafionItwasestablishedbythcCityundertheprovisionsofChapter431TexasTransportationCodeandthogenerallawsoftheStateofTexastoaidassistandactonbehalfofthoCityintheperformanceofthcCitysgovcamentalfunctionsandtoprovideameansoffinancingccFtainProjectcostsinconnectionwiththeZoneTheCorpswasdirectedbytheCongressoftheUnitedStatesCongresstocarryoutaprojectforecosystemrestorationandstormdanmgereductionatNorthPadreIslandTheProjectwillextendtheexisfinapproximntdy26milesportionofthcPackvyChannelanadditional09mileTheProjectisdescribedintheEnvironmentalImpnctStatementELSasnrcthebenefitsandimpnctstobeexpectedfromtheProjectErosionofthebeachinfrontoftheseawalljustsouthoftheboundarybetweenMustangandNorthPadreIslandsiscausingalossofrecreationalbeachDredgingPackeayChannelwouldprovidesandfornourishmentofthebeachandaneniargedbeachwouldreduecpotentialfuturestormdanmgeAProjectStudyPlanpreparedbytheCorpsin1999examinedthreealtenuitivesitesincludingPackelyChannelThreediffertchannelwidthsunderthreediffelentsalinityregimeswerealsoxllminodtodetorthoenvironmentalbenSitsofanopiningbetweentheLagunaMadreandtheGulfofMexicoTheenvironmental benefitsofallalternativeswereessentiallynegligibleThefinalElSwillbeavailableuponpublicationbytheCorpsfromtheCityofCorpusChiistiTexas1201LeopardStreetCorpusChristiTexgas78401AttentioncitySeeraryTheProjectisaprojectforecosystemrestorationandstormdamagereductionconsistingofajettiedentrancechannelmainchanneldredgedtoarequireddepthof14feetandabottomwidthof116feetuptotheTexasHighway361bridgescourprotectionfortheexistingbridgeconcretebulkheadsonbethsidesofthemainchannelcreatingthreeplacementareastocreateshallowwaterhabitatcontinuingwithasmallerchannelalongtheexistingalionmentofPacketyChannelfromthehighwaybridgetotheGulfInUacoaqalWaterwsydredgedtoarequireddepthof7feetandbottomwidthof80feetinstallationofa30tachHDDPEpipeforasandbypasssystembeachnourishmentonthebeachsouthofthechannelandmiscellaneousutilityremovalsandrelocationsTheProjectconsistsofdredginga134footwidechanneltoconnecttheexistingPackeryChanneltotheGulfofMexicotoa12footdeepauthorizeddepthrequiringaninitialdredgedepthto14footanddroingthexistingchanneltoadepthof7feetmeansealevelandawidthof80feetThetotallengthoftheproposedchannelfromtheGulfendofthejettiestotheGulfIntracoastalWaterwayisapproximately18500feet35milesApproximately801200cubicyardscyofmatexialwillbedredgedduringconstructionmostofwhich646000cywillbeplacedonthebeachsouthoftheproposedjettiesplacementareaPA4SforstormdamagereductionmfrontoftheexistingconcreteseawallSandymaintenancematerialfromthechanneleastoftheSH361bridgewillbeusedforbeachnourishmentandasandbypasssystemwillbedesignedtomoveaccumulatedsandfromlongshoredrifttothedowndriftsideofthejettiesApproximately15000cyofestimatedmaintenancedredgingeveryfiveyearswillbeplacedinanuplandsiteTheProjectistobeconstructedbytheCorpsunderaproposedProjectCooperationAgreementbetweenTheDepartmentoftheArmyandtheCitytheProjectContractTheProjectContracthasnotbeenapprovedbyeithertheCorpsortheCitybuttheCityexpectsexecutionoftheProjectContractbybothpartiesbySpring2003ThePlancallsfortheremainderoftheapproximately195millionneededtocompletetheProjecttobefundedbytheUnitedStatesGovernmentundertheProjectContractAsofFebrumy252003Congresshasappropriated40millionforProjectconstructionbutisundernoobligationtoappropriatetheremainderofitsshareofProjectcostsOncetheinitialProjectiscompletedtheCitywillincurcostsofmaintenancedredgingofPackeryChannelasdescribedaboveItisanticipatedthatuponcompletionoftheinitialProjectthcestimatedmaimenaneedredinogwillcommencein2008andtheestimatedcostofsuchmamtenaneedredginginthatyearwillapproximate350000ThccostsofthemaintenancedredgingareintendedtobepaidbytheZoneeitherfromtaxmutcollectionsproceedsfrombondsacombinationofthosetwosourcesorothermoneysmadeavailabletothcCityortheZoneforsuchpurposeSecondarydevelopmentwithintheZonethatincludespublicmiprovemantsisbeingproposedbytheCityaslocalsponsorSeeondarydevelopmentincludesproposedparkamenitiesthatoncompassapproximately142acresprovidingaccesstoPackmyChannelthobeahaliathejettiespassengerandrecreationalvehicleparkingwalkwaysstroomsandvendorfacilitiesThelocationoftwopotentialCityparkareasisproposedalongtheareanearesttheGulfofMexicoreachofPackeryChannelTheProjectthemaintenancedredgingofthePackeryChannelandthepublicimprovementsassociatedwiththeproposedsecondarydevelopmentarefoundtobeProjectCostsassuchtermisdefinedintheTIFActTheProjectContractTheProjectistobeconstructedbythcCorpsundotheProjectContractTheProjectContracthasnotbeenapprovedbyeithertheCorpsortheCitybutthcCitycxpeetsexecutionofthoContractbybothpartiesbySpring2003UndertheProjectContracttheCorpssubjecttoreceivingfundsappropriatedbyCongressandusingthe2 fundsexpectedtoboprovidedbythcCitythroughtheIssuerwouldagreetoexpeditiouslyconstrutheProjectTheProjectContractreconizesthatCongressionalappropriationstodatearelessthantheamountoffederaifundsrequiredforcompletionoftheProjectndthatmtheeventinsufficientfundsareappropriatedforthcfederalgovernmentsshareofProjectcoststhenProjectconstructionwillbesuspendedortheProjectContractterminatedThefederalgovernmentexpresslymakesnocommitmenttoseekadditionalfederalfundsfortheProjectTheCitywouldagreetocontribute35ofthetotalProjectcostsatleastfivepercentofwhichmustbcconlributlincashwiththeremainderbeingthcappraisedvaiucofcashorlandscasementsrightsofwayandsuitableburrowanddredgedorexcavatedmaterialdispnsalareasTheCitymustdeposititsshareofprojectedfinancialobligationsforconstructionthroughthcfirstfiscalyearofconstnionwithin45daysofnotifromttCorpsForeachsubsequentyearthcdslnsitmustbemadenolaterthan60dayspriortothebeginningofthcfiscalyearTheProjectContractobligatestheCitytooperatemaintainrepairreplaceandrehabilitatetheentireProjectatnocosttothefodelalgoviiRlentThoCityisseekingtrallsfgrofaportionofthemalntenalleecosttothBCorpsbutatthistimenoprovisionhasbeenmadforpaymentofongoingmaintenancecostsFundingofamaintenanceservefromproclsofanadditionalseriesofTaxIncrementContractRevenueBondsiscontemplatedbythisPlanbutthereisnoassurancethatamaintenancereservewillbetimdnoristhereanyguaranteethatiffundadthemaintenancereservewouldbeadequatetopaycostsofongoingmaintenanceReinvestmentZoneNumberTwoCityofCorpusChristiTexasThcZonewasceatedbytheCitypursuanttothcTIFActtofacilitatedcvclopmantoftbelandwithintheboandariesofthcZonea194701acreparcellocatedentirelywithintheCityandthcCountyTheZonebacamecffeetiveonNovember142000andwilltaminateunDecember312022oratanearliertimedesignatedbysubsequentordinanceoftheCityoratsuchearliertimethataHZoneProjectCoststaxincrementbondsandthetonalltaxincrnentbondshavebeenpaidinfullthedurationofthcZoneThcZoneislocatedonPadreIslandandintersectedbyStateHighway361andParkRoad22leadingfromthJohnFKennedyCauseavayAmapshowingtheexistingusesandconditionsofrealproptyintheZoneisattachadtothisPlanasExhibitBAmapshowingthcproposedimprovementstoandproposedusesoftherealpropertyintheZoneisatChedtothisPlanasExhibitCPursuanttotheT1FActtheordinanceoftheCityestablishingtheZonealsoestablishedaBoardfortheZoneTheZoneBoardconsistsof12personswithonememberfromeachParticipantotherthantheCityandtheremaindebutnotlessthan10appointedbytheCityNamePositionSamnelLNealPresidentVicePresidentJaviarDCohncucroMemberBnmtChesneyMemberRgxKinnivonMemberJohnLongoriaMemberJesseNoyolaMemberMarkScottMemberGabrielRivasMemberCaiJenninMllbelRielmrdPittmanMemberJohnLaRueMemberAooointedBvCityofCorpusChristiNuecesCountyCityofCorpusChstiCityofCorpusClisCityofCorpuChristiCityofCorpusChristiCityofCorpusChristiCityofCorpusChristiI1MarCollegeNueeesCountyHospitalDistrictFlourBluffIndqalentSchoolDistrictPortofCorpusChristiAuthority3 ExistingLandUseExistinglanduseswithintheZoneconsistoffightcommercialdevelopmentmixedresidentialdevelopmentvacantunimprovedlandandnondevelopablelandincludingwaterwaysroadwaysandparksTheCityhasestimatedthefollowingcurrentusagewilhinthcUseAcresVacant8571718WaterArea4478253Park3845719RightofWay1582465Commercial336232MediumDensityResidential344813PublicSemiPublic90187HighDensityResidential77001ProfessionalOffice60570LightIndustrial65105LowDensityResidential18075TotalL9470138InfrastructureRequirementsforDevelopmentItistheCityspolicythatinfrastructurerequiredfornewdevelopnmtwithinthoZonewillbetheresponsibilityofeachlandownerordevelopersimilnrtoanyotherdevelopmentthatoccursintheCityThewastewatartreatmentplantandminkmaincollectionsystemisinplaceandisofsufficientcapacitytoaccommodatenewdevelopmentandsufficientfxeshwatersupplyisavailabletoserveanticipateddevelopmentwithintheZoneTherearegenerallyroadsandstreetsthroughouttheZonethoughindividualtractsmayrequireadditionalstreetconstructionsewercollectionlinesorwatersupplylinesfordevelopmentTheCitypaysforoversizeandradepthcostsassociatedwithwaterandwastewatarextensionsthataredesignedtoservicepropertyoutsideorbcyundtheownarsdevelopmentThcCityparticipatesinstreetdevelopmenttopaytheaddilienalmforextrawidthassociatedwitharterialstreetsorcollectorsthataredesignedtobeexudedbeyondthedeveloperspropertyTheCityalsopaysforthccostsofbridgesandculvertstoextendstreetsbcyondthedeveloperspropertyUndevelopedLandWithintheZoneApproximately857acreswithintheZoneareunimprovedorunderdevelopedlandTheCityanticipatesthatsuchunimprovedlandwillbedevelopedforresidentialandlightcommercialusecomistentwithinexistingusesandadditionaldevelopmentmustoccurbeforetheIssucanprovideforthepaymentofadditionalTaxIncrementContractRevenueBondsharinaflardefinedrequiredforcompletionoftheProjectwithoutadverselyaffectingtheIssuersabilitytopaydebtserviceontheSeries2003BondshereinafterdefinedNorepresentationismadeinthisPlanwithrespecttotheultimatedevelopmentofsuchpropertyProjectCostsAdetailedlistingoftheproposedpublicworksandpublicimprovementstobeundertakenintheZoneshownbykindnumberandlocationandtheProjectcostsoftheZoneincludingwithoutlimitationthecostsoftheinitialdredngofPackeyChannelthemaintenancedredgiilgcostssecondazyProjectcostsadminihveXSofthZoneandothernonprojectcostssuchaswatersupplyimprovementsandroadsthatarenotintendedtobefundedthroughtheoperationoftheZonearesetforthinExhibitDTheestimaUxiamountofbonded4 indebtectzsstobeincumdtopayinitialProjectcostsandthetimingofwhenrelatedcostsandmonetaryobligationsforimlenlntingthisPlanaretobeincurredsetforthinExhibitDTheCitycurrentlyestimesthatthetotalnmountofIssuerdebtnssarytobeissuforcompletionofinitialProjectcostswillnotexceedSI2000000SecondarydevelopmentimprovcmentsarctobcfinancedasfundingbecomesavailablefromsurplustaxincrementsorbondsTheCitycunoenflyestimatesthetotalamountofIssuerdebtthatmaybeissuedforsecondmydevclopmentswillnotexceed3000000ThePlanofFinanceTheCityhascreatedtheZoneforthepurposeofraisingfundsneededtoprovidetheCitysshareoftheProjectcostsandthcSeries2003BondshereinafterdefinedarethcfirstinstallmentofIssuerbondstobeissuedforthatpurposeTheCitytheCountyDelMarCollegeajuniorcollegedistrictandpoliticalsubdivisionoftheStateofTexastheCollegeandNuecesCountyHospitalDistrictahospitaldistrictandpoliticalsubdivisionoftheStateofTexastheHospitalDistricteachhaveagreedtodeposittotheTaxIncrementFundestablishedfortheZonetheTaxImacantFundcertaintaxcollectionsarisingfromtheirrespectivetaxationoftheincreaseifmayintheappraisedvalueofrealpropertylocatedintheZonesinceNovember142000bereinatdefinedastheDedicatedTaxIncrementsthroughtheearlierofDecember312022orthedateonwhichanyoutstandingobligationspayablefromtheDedicatedTaxIncrementsarefinallypaidTheCityhasenteredintoseparateinterlocalagreementstheInterlocalAgreementswiththeCountytheCollegeandtheHospitalDistxictwhichsetsforthamongotherthingstheagreementoftheCityandCountyCollegeorHospitalDistrictasapplicabletopaytotheIssuertheDedicatedTaxIncrementstheContractTaxIncrementsThebondstobeissuedtofundProjectcostsaretobepayablesolelyfromtheContractTaxIncrementsandcexlainotherfundsondepositwithJPMorganChaseBankHoustonTexastheTrusteeorwhichmaybedepositedwiththeTrusteeinthefuturetogetherwithearningsandinvestmentsthereonthePledgedRevenuesTheCitytheCountytheCollegeandtheHospitalDisicteachreferredtoindividuallyhereinasaPaicipanfandcollectivelyrefeaxedtoastheParticipantshaveagreedtodeposittotheTaxInerememFundtheDedicatedPursuanttotheTIFActataxingunitstaxincrementforayearaTaxIncmentistheamountofpropetytaxesleviedbytheunitforthatyearonthecapturedappraisedvalueofrealpropertytaxablebytheunitandlocalinareinvestmentzoneTaxInerernentsdonotresultfromanyincreaseintheappraisedvalueofpersonalpropertysuchasequipmentorinventorytaxablebytheunitandlocatedinareinvestmentzoneTheTIFActdefinescapturedappraisedvalueCapturedAppraisedValneasthetotalappraisedvalueofallrealpropertytaxablebytheunitandlocatedinareinvestmentzonelessthetaxincrementbaseoftheunitThetaxincrementbaseofataxingunittheTaxIncrementBaseisthetotalappraisedvalueofallrealpropertytaxablebytheunitandlocatedinareinvesmaentzoneforthcyearinwhichthezonewasdesignatedInthecaseoftheZonetheTaxIncrementBaseisthetotalappraisedvalueofallrealpropertyintheZonetaxablebytherelevantanicipaatsasofJanuaryl2000TaxIncrementsresultonlyfromCapturedAppraisedValueintheZonewhichconsistsof19470138acsapproximately5428184ofwhichispubliclyownedandnot0ubleExhibitAshowsatheTaxIncrementBaseoftheZonebthecurrentasofthedateofthisPlantotalappraisedvalueoftaxablerealpropertyintheZoneandctheestimatedcapturedappraisedvalueoftheZoneduringeachyearofitsscheduledexistencePursuanttoseparateInterlocalAgreementsbetweentheCityandenehoftheCountytheCollegeandtheHospitalDistrictrespectivelytheInterlnealAgreementsthePaxiieipontshaveagreedtodepositallorapordunoftheirTaxIneremetotheTaxInerementFundTheCitytheCountyandtheHospitalDistricthaveagreedtodeposittotheTaxIncrementFund100oftheirtaxcollectionsonCapturedAppraisedValueinthe5 ZoneforcachtaxyearthattbeZoueremainsinaxistenceceflmaencmgintaxyear2000TheCollegehasagreedtodeposittotheTaxIncrementFund100oftheitsTaxIncrementsforthefirstfiveyears20002004oftheInterluealAgreement80forthesixthyear200560oofortheseventhyear200640fortheeighthyear200720fortheninthyear2008andnonethereafrTheamountstheParticipantshaveagreedtodeposittotheTaxIuenentFundarereferredtohereinastheDedicatedTaxIncrementsTheobligationsoftheParticipantstopayDedicatedTaxIncrementsintotheTaxInerementFundaresubjecttotherightsofanyoftheholdersofbondsnotesorotherobligationsthathavebeenorarebereafrissuedbyaParticipantthatarepayablefromandsecuredbyagenerallevyofadvaloremtaxesthroughoutthetaxingjurisdictionofthatParticipantNorthPadreIslandDevelopmentCorporationTheIssuerTheIssuerisanotforprofitlocalgovemaentcorporationandwasestablishedbytheCityundertheprovisionsofChapter431TexasTransportationCodeandthegenerallawsoftheStateofTexastoaidassistandactonbehalfoftheCityintheperformanceoftheCitysgovernmentalfunctionsandtoprovideameansoffinancingcertainProjectcostsinconnectionwiththeZoneItisgovernedbyaBoardofDirectorswhosemembersareappointedbytheCityCouncilOnDecember172002theCityCounciloftheCityappointedallofthemembersoftheCityCounciltoserveasmembersoftheCorporationTheBondsItisanticipatedthatthreeseriesofbondswillbeissuedbytheIssuertofinancetheinitialcostsoftheProjectThefirstseriesofbondsisanticipatedtobeissuedinthespringof2003theSeries2003BondsincooneetionwiththeimplenentafionofthisPlanShouldbondsbeissuedtofundthecostsofmaintenancedredgingitisanticipatedthatfundsforsuchusewouldbeincludedinthcthirdseriesofbondstobeissuedTheSeries2003BondsarethefirstissueofbondstheTaxIncrementContractRevenueBondstobeissuedbytheIssuerTheTaxIncatContractRevenneBondsincludingtheSeries2003BondsaresecuredbytheIssuerspledgeofpaymentstobereceivedpursuanttoaTriPartyAgreementamongtheCitytheZoneandtheIssuetheTriPartyAgreementUnderthatagrcementtheContractTaxInerememswillbepaidintothaTaxInerementFundattheCitysdepositoryTheBondswillfundaportionoftheCitysshareoftheProjectCostsCompletionoftheProjectwillrequireadditionalfundingwhichcurrentlyisanticipatedtobeprovidedthroughtheissuanceofadditionalbondsbytheIssuersecuredfromDedicatedTaxInerementsonparitywiththeBondsSecondadevelopmentiovementsmayalsobefinencedfromadditionalbondsFortheIssuertobeabletorepoysuchadditionalbondssubstantialgrowthmthetaxablevalueswithintheZonemustoccurandthereisnoguaranteethatsuchgrowthwillhavebeenaccomplishedpriortothetimingoffundingtheranainingphasesofthedevelopmentandcompletionoftheProjectGrowthintaxablevalueswithintheZoneisdependentonfuturedevelopmentofadditionaltaxableimprovementsVChiletheCityexpecthatsuchadditionalimprovelnentswillbeconstructedifthePackaryChanneliscompletedthereareapproximately1838tractsoflandwithintheZoneownedbyapproximately1054differentownersandneithertheIssuernortheCityhasanyagreemtwithylandownerforeonstracfienofimprovementswithintheZoneorknowledgethatanylendownerstocenstmetadditionalimprovenngWithoutfuturedevelopmentwithintheZonetherecanbenoguaranteeofadditionalDedicatedTaxIncremantssufficienttopaydebtserviceonbondsissuedtofinancetheProjectAprojectionoftheProjectcoststobefundedwithbondproceedsandthesizingofthebondissuestofundthoseProjectcostsissetforthinExhibitDTheTriPartyAgreement TheCitytheZoneandtheIssuerwillenterintothcTriPartyAgrementPursuanttotbeTriPartyAgreementtheIssuerwillpmvidcminmanagementandadminislrativesvicesfortheZoneTheIssuerisauthorizedtoissuebondsorenterintootherobligationstoberepaidfromContractTaxIncrementsbutonlywiththeapprovaloftheCityCouncilTheIssueragreestousallContractTaxIncrementsinammmerconsistentwiththePlanTheTriPartyAgreementprovidesfordutiesandresponsibilitiesofthcCitywithrespecttoDedicatedTaxInenmtsandprovidesfordutiesendresponsibilitiesofthcZonewithrespecttoDedicatedTaxIncrementsThcDedicatedTaxIncrvmcntsarctobedepositedwhenreceivedintotheTaxIncrementFundTheCityandthcZonewillcovenantandagreethattheywillcontinuouslycollecttheDedicatedTaxIncrementsfromthePmlicipantsinthemannerandtothemaximumextentpermittedbyapplicablelawTothcextenttheCityandZonemaylegallydosotheyalsowillcovenantandagreethattheywillnotpermitareductionintheDedicatedTaxIncrementspaidbytheParticipantsThcCitywillcovenantandagreetoannuallylwyassessandcollectitsadvaloremtaxesintheZoneTheCityandtheZonewillagreetopaytotbeIssuertheContractTaxIncrementsinconsiderationfortheIssuerfundingcertainoftheProjectcostswiththeproecedsoftheTaxIncrementTheobligationsoftheCityandtheZonetopayContractTaxIncrementsshallbesubjecttotheTriPartyAgreementandtherightsofanyoftheholdersofbondsnotesorotherobligationsthathavebeenorarehcreaflrissuedbytheCitytheCountytheCollegeortheHospitalDistrictthatarepayablefromandsJredbyagenerallevyofadvaloremtaxesthroughoutthetaxingjurisdictionoftheCityCountyCollegeorHospitalDistrictItisanticipatedthatthemtcrestsoftheIssuerintheTriPartyAgreementwillbeassignedtotheTrusteefortheTaxIncrementContractRevenueBondsunderthetmsoftheIndenturepursuanttowhichsuchTaxIncrementContractRevenueBondsaretobeissuedTheTHPartyAgreenaentmaybeamendedwiththemutualconsentofthepartieshoweveranyamendmentmustbeaccompaniedbyanopinionofcounseltotheIssuertotheeffectthatsuchamendmentwillnotmateriallyimpairtherightsoftheownersofthcIssuersbondsorocroutstaxlingobligations7 RemvestmentZoneNumberTwoCityofCorpusChristiTexasEXHIBITARevenueFlowsonNorthPadrblandFiReportDatedAugust2002ERAProjectNumber14663 FinalReportForecastofPotentialTIFRevenueFlowsonNorthPadreIslandSubmittedtoTheCityofCorpusChristiAugust2002ERAProjectNumber14663 TABLEOFCONTENTSGeneralLimitingConditionsivIntroduction1Approach2ParticipatingJurisdictions3Methodology3TIFREVENUEANALYSIS5Summary5RealEstateMarketDiscussion5TIFWaterfrontProperties20026GrowthRates10PadreIsland10TIFRevenueConclusions11 ListofTablesandExhibitsTable1TaxableValueofLandImprovement2TIFDistrict20002Table2TaxRatesforParticipatingJurisdictions3Table3WaterfrontPropertiesbyLocationandValuewithintheTIFDistrict6Table4AverageAssessedLandValuebyLocation7Table5AverageCondominiumAssessedValuebyWaterfrontage8Table6CondominiumPropertiesmtheTIFDistrict8Table7LakePadrePropertiesbyTaxID9Table8OtherNonExemptWaterFrontProperties9Table9ExemptProperties10Table10PadreIslandGrowthRatesbyLocation1992200210Table11Scenario1TIFDistrictTaxableValueandRevenue2001202211Table12Scenario2TIFDistrictTaxableValueandRevenue2001202211Exhibit1TIFRevenueScheduleScenarios1and212Table13TIFTaxableValueandTaxRevenueScheduleScenarios1and2000s13TXFAlmltldlforNorthPadrelarldIinalPageiii GENERALLIIffiNGCOND11ONSEveryreasonableefforthasbeenmadetoensurethatthedatacontainedinthisstudyreflectthemostaccurateandtimelyinformationpossibleandtheyarebelievedtobereliableThisstudyisbasedonestimatesassumptionsandotherinformationdevelopedbyEconomicsResearchAssociatesfiomitsindependentresearcheffortgeneralknowledgeoftheindustryandconsultationswiththeclientandtheclientsrepresentativesNoresponsibilityisassumedforinaccuraciesinreportingbytheclienttheclientsagentandrepresentativesoranyotherdatasourceusedinpreparingorpresentingthisstudyNowarrantyorrepresentationismadebyEconomicsResearchAssociatesthatanyoftheprojectvaluesorresultscontainedinthisstudywillactuallybeachievedPossessionofthisstudydoesnotcarrywithittherightofpublicationthereofortousethenameofEconomicsResearchAssociatesinanymannerNoabstractingexcerptingorsummarizationofthisstudymaybemadeThisstudymaynotbeusedforpurposesotherthanthatforwhichitispreparedExceptionstotheserestrictionsmaybepermittedafterobtainingpriorwrittenconsentfromEconomicsResearchAssociatesThisstudyisqualifiedinitsentiretybyandshouldbeconsideredinlightoftheselimitationsconditionsandconsiderationsTiFAnelbforNolPldrelendFinalPageIv tNTRODUCIONEconomicsResearchAssociatesERAwasengagedtoprovidetheCityofCorpusChristiwithestimatesoftaxincrementrevenuesintheproposedNorthPadreIslandTaxIncrementFinanceTIFdistrictERAunderstandsthatestimatedfuturetaxrevenuesbomthedistrictwillbetargetedtofundaportionofthedevelopmentcostoffundingtheNorthPadreIslandDamageReductionandEnvironmentalRestorationProjectThisforecastmakesuseofdataprovidedbytheCityofCorpusChristiandtheNuecesCountyAppraisalDistrictcoveringpropertytaxratesassessedvaluesandactualhistorictaxespaidforthedefinedTIFdistrictDatafiomthesesourceshavebeenassessedtogenerateareasonableestimateofpotentialtaxincrementrevenueThisreportisindependentfiomanearlierreportpreparedbyERAintheyear2000ThisreportdoesnotassumeanymajordevelopmentinNorthPadreIslandandusesadifferentmethodologytoforecasttaxrevenueintheTIFDistrictSomenumbersareroundedandmightdifferfiomtheoriginaldatabaseAlthougheverypossibleefforthasbeenmadetopresentcorrectinformationsomeerrorsmightbepresentduetohandlingoflargedatasetsinashorttimeperiodHoweverERAbelievesthattheresultsarereasonableandconcurwiththedataavailableERAwouldliketothankallstaffmembersattheCityofCorpusChristiandtheNuecesCountyAppraisalDistrictforprovidinguswithdataintimelyfashionthatensuredpreparingacomprehensivereport APPROACHTheapproachfollowedbyERAfirstdefinesthecurrentbaselineassessedandtaxablevalueoftheproposedTIFdistrictusingassessmentinformationforlandandimprovementsprovidedbyofficialswiththeCityofCorpusChristiandtheNuecesCountyAppraisalDistrictERAunderstandsthatthebaseyearforthedistrictiscalendaryear2000FromthisbaseyearvalueERAgeneratestwosetsofTIFrevenueinputsForecastgrowthinthetaxablevalueofcurrentlyexistingbuildingsandvacantlandinthedistrictovera20yearperiodusingconstantgrowthrateforalltypesofpropertiesForecastgrowthinthetaxablevalueofcurrentlyexistinglandanddevelopmentinthedistrictusingvariablegrowthratesbasedonlocationwithinthedistrictGrowthinassessedvaluesandtaxespaidforcurrentimprovementsandvacantlandaswellasnewdevelopmentbeyondlevelsdefinedinthebaseyearconstitutetheincrementinpropertytaxrevenuethatcanbecapturedforpotentialuseinthePackeryChannelprojectWorkingwithofficialsattheNuecesCountyAppraisalDistrictCityofficialsprovidedERAwithyear2000assessedandtaxablevaluesforalllandandimprovementsintheproposedTIFdistrictThefollowingtableindicatesthatthedistrictcurrentlycontainsvacantlandandimprovementsamountingto85870603intaxablevalueThetablebreaksdownvaluesbetweenhomesiteandnonhomesitelandandimprovementsaswellasexemptionsandadjustmentstoarriveatatotaltaxablevalueExemptionsandadjustmentsaremadeforhomesteaddisabledindividualsandveteransandpeopleover65Preliminaryassessmentsfor2001are98153611andfor2002107588794TaMe1TaxableValueofLandImprovementTIFDisbk2000CaterylandHomeSiteLandNonHomeSitImprovementsHomeSiteImpuvementsNonHomeSiteSubTotalExemptionsAdjustmentsTotalTmbleValeVstae5491354239475564220059017684297893237973453194LookingfurtherattheabovetableERAdeterminedthathomesiteimprovementsincludesinglefamilyhomesaswellashigherdensitycondominiumprojectsontheseawallThisdistinctionisimportantbecausehomesitelandaccountsforonly18oftotallandassessedvaluebuthomesiteimprovementsaccountfor70oftotalimprovementsTZFAnmlyifarNxthPBdreblandFindpsge2 ParticipatingJurisdictionsFourjurisdictionsarecontributing100intothetaxincrementfundforthewholeperiodstartingin2001through2022OnejurisdictionDelMarJrCollegeiscontributing100intothetaxincrementfundforthefirst5years80forthesixthyear60fortheseventhyear40fortheeighthyear200fortheninthyearand0thereafterThreejurisdictionswillnotparticipateFlourBluffIndependentSchoolDistrictISDPortofCorpusChristiandFireDistrict2Thefollowingtableshowstaxratesscheduleper100oftaxablevalueTable2TaxRatesforParticipating3urisdicHonsJurisdictionsProvidinALL2001200S20620072008200920102022IncrementJurisdictionsCityofCorpusChristi0644175FarmtoMaflcetRd0005238CountyHospital0228028DelMurJrCollage021988NuecesCounty035024206441750644175064417500052380005238000523802280280228028022802802198801759040131928035024203502420350242064417506441750644175000523800052380005238022802802280280228028008795200439760035024203502420350242PortofCorpusChristi0002117FlourBluff1SD1526197FireDistrictg20022200TOTAL299807714475631403S91359611L315641271661227683NoAssmnolaxratesdonotchmpeSgurceNueccsCountyAppraisalDistctCitofCorpusChriRegardingtheabovetaxrateslocalofficialsindicatedthattheydidnotexpecttoseeunusualgrowthintheabovetaxratesinthenearfutureFollowingstandardTIFmodelingguidelinesERAhastakentheabovetaxratesandheldthemconstantforthedurationofthe20yearTIFmodelWithtaxratesheldconstantkeydriversoftheforecastbecomeratesofappreciationforexistingimprovementsandvacantlandMethodologyInordertoestimateareasonabletaxrevenueflowERAmadethefollowingassumptionsBasetaxyearis20002002taxratesforeachparticipatingjurisdictionareassumedfixedforthewholeperiodthrough2022Taxincrementfundstartsin2001EndofTIFdistrictis2022PackeryChannelwillbecompletedin2004TheTHdistricttaxrevenueflowiscompletelyindependentofanypotentialmajordevelopmentthatcouldpotentiallyhaveagreatimpactonotherdevelopmentsandlandvalueTFAnallmlaforNorthPadrelandFImMPa3 FirtoIncreaseValueoflandandcurrentdevelopmentswithwaterfrontageintheDistrictexcludingbeachpropertieswillbethefirsttoincreaseinvalueduetotheopeningofPackeryChannelasitwouldprovidedirectaccesstotheGulfofMexicoMagnitudeofIncreaseWaterfrontpropertiesvacantlandintheDistrictexcludingbeachpropertieswillhavethegreaterincreaseinvaluecomparedtopropertieswithoutwaterfrontageItisassumedthatthevaluewillapproachthevalueofvacantbeachpropertiesBasedontheaboveassumptionsERAcompileddatafromtheCityofCorpusChristiandtheNuecesCountyAppraisalDistricttoestimatecurrentlandandimprovementvaluebylocationintheDistrictUsingTaxIDdataERAaggregatedpropertiesbasedontheirlocationbydefining4distinctlocationsBeachLakePadreOtherwaterfrontpropertiesNonwaterfrontpropertiesAfterlinkingeachpropertytoalocationtotalassessedandtaxablevalueswerecalculatedforeachlocationValuecomparisonwasestablishedandwaslaterusedtoestimategrowthratesforpropertieswithintheDistrictERAalsoaggregatedallvaluesofpropertiesonNorthPadreIslandforthepast10yearstoestimateanaveragecalculatedaveragegrowthrateCAGRfortheislandThisCAGRwasthenappliedintheforecastmodelTaxratesfromtheparticipatingjurisdictionswerethenappliedtoestimatetaxrevenueflowsTIFAnalyibforNodhPadreslandFinalPage4 TFREVENUEANALYSSSummaryTwoscenariosweredevelopedandarepresentedinthisreportThefirstscenarioappliesanannualgrowthrateof9from2003through2012and3annualgrowthratefrom2013through2022forallpropertieswithintheTWDistrictThe91annualgrowthraterepresentstheCAGRoftheassessedvaluesofallpropertiesonPadreIslandfrom1992through2002ThesecondscenarioappliesdifferentannualgrowthratesforeachpropertytypeintheTIFdistrictWaterfrontpropertiesonLakePadrethecanalandontheproposedPackeryChannelareestimatedtogrowatanannualrateof24between2003and2007DuringthesameperiodBeachpropertiesandnonwaterfrontpropertiesareassumedtogrowat91From2008through2022allpropertiesareestimatedtogrowattheinflationrateof3perannumThe24annualgrowthraterepresentstheestimatedCAGRofthetotaltaxablevalueofTIFpropertieswithinthefiveparticipatingjurisdictionsfrom1996through2001ThetwoscenariosareconservativeanddonotassumeanynewdevelopmentFrom2001through2022andusing2000asthebaseyearthefirstscenariogeneratesatotaltaxrevenueof634millionofwhich389millionistheTIrevenueThesecondscenariogeneratesatotaltaxrevenueof559millionofwhich313millionisTHrevenueAdetailedanalysisfollowsRealEstateMarketDiscussionEconomicsResearchAssociatesconductedanumberoftelephoneimerviewswithaccreditedrealtorsinCorpusChristiandPadreIslandThegeneralconsensushasbeenthatoverthepastthreeyearsdemandforgoodpropertiesdefinedasthoseingoodrepairmodernappliancesvisuallyappealingandhavegoodaccesshasincreasedremarkablyThisincreaseindemandthelimitedsupplyandastrongmarketlettoanincreaseinpricesThedemandforweekendandseasonalhomesfromresidentsoflargeTexancitiessuchasDallasHoustonandSanAntonioisalsopushingpricesupwardAgingbabyboomersandahealthyeconomyhadleadtostrongdemandofretirementandseasonalhomesinPadreIslandThisdemandhasexceededthemarketsabilitytosupplymorehousingunitsAnotherfactorintheescalationofpriceanddemandisspeculationregardingthePackeryChannelwhichwouldconnectLakePadreandthePackepyChanneltotheGulfof MexicoTheChannelisperceivedasaconvenientwaytoprovideaccesstotheGulfofMexicofromLakePadreandtheintercoastalareasSomerealtorsindicatedthatLakePadrepropertieswouldbemoreattractivetosailingenthusiaststhatwouldneedtobeeastofthe22footbridgetobenefitfromtheChannelThisisassumingamarinaisdevelopedonLakePadrePropertieswithoutwateraccessknownamongrealtorsasdryorinteriorpropertiesonPadreIslandcandemanda1000015000premiumovercomparablepropertiesinthecitySomerealtorsindicatedthatthedifferenceinpricebetweenwateraccessibleanddrypropertiesonPadreIslandistoogreattocharacterizeWhenaskedaboutPortAransasandhowthemarketcomparestoPadreIslandMostrealtorsindicatedthatpropertiesinPortAransas20milesfromCorpusChristiareoverpricedandarenotcomparableinqualityRealtorsalsoindicatedthatPadreIslandhasstrongattributesandcharacterthatwouldattractinvestorstodevelopresortssomethingthatPortAransaslacksTIFWaterfrontProperties2002UsingthemicroleveldatapropertytaxrecordsobtainedfromtheCityofCorpusChristiandtheNuecesCountyAppraisalDistrictERAwasabletocompilewaterfrontpropertiesintheTIFDistrictbylocationandtypeTheTWDistricthas193008acreswithatotalassessedvalueof10759millionin2002Approximately51oflandhaveorwillhaveaftertheopeningofthePackeryChannelwaterfrontageor977acresApproximately203acresor21ofwaterfrontpropertiesareexemptpropertiesThewaterfrontpropertieshaveatotalassessedvalueof651millionandatotaltaxablevalueof606millionThefollowingtablesshowwaterfrontpropertiesbylocationlandvalueimprovementvaluetotalexemptionstaxablevalueandacreageTable3WaterfrontPropertiesbynandValuewLdnUteTFDistHclTypeAcreLandValueImprovementTotalAmessedTaxableValueValueValueCondosBeach1345245049928962433141304229048886AcrossfromtheBeach361281352390279941841513533871OtherIakePadreConl10931459001116002201305922111503641LakePadre47066459101393874255297555517325Bech53202577105435508369321886932188Rxempt202860000Otller222242517234166983641870704054928TOTALWATERPROPERTS9769513876204514292236530542760590839SoursNuecesCouuUAppralDistfiEconomicsResechAssociatesTFAnalyFroNuelhPadre11FinalPage6 Mostofthecondominiumpropertiesareolderdevelopmentsdatingtomid1980sespeciallytheoneswithabeachfrontageMostofthepropertiesonLakePadreareparcelsofvacantlandTheothernonclassifiedpropertiesareparcelslocatedontheCanalandwhatwouldbeonthePackeryChannelLandvalueasexpectedincreaseasitapproachestheBeachThemostexpensivelandparcelsarethoseofcondominiumwithbeachfrontagewithover180600peracreThesecondhighestonaveragearecondominiumpropertiesonLakePadrewith133500peracrefollowedbycondominiumpropertieslocatedacrossfromtheBeachAsexpecteddevelopedlandalthoughwithindirectbeachfrontagehasmorevaluethanundevelopedbeachparcelsItisplausibletoassumethatthevalueoflandparcelswithbeachfrontagewouldmorethanquadrupleinvalueateritisdevelopedThefollowingTableshowsaverageassessedvalueperacrebylocationTable4AverageAssessedLandValuebyLocationTypeAcreAverageLndValueAcreCondoBeach1345180623AcafromthcBeach36177840OtherLakePadreCanal1093133448LakePadre470669754Bech532048442Exempt202860Other2222411327TOTALWATERPROPERTIES9769517897NoteTotalaveragelandvlueexcludesexptpropertiesSoreNuecesCountyAppraisalDistrictEconomicsResearchAssociatesThereare16condominiumdevelopmentsintheTIFdistrictofwhichfourarelocatedonthebeachthreearelocatedacrossfromthebeachandtheremainderislocatedonLakePadrethecanalandPackeryChannelThemostexpensivecondominiumsarethosewithadirectbeachfrontageThefollowingtableshowsaverageassessedvaluepercondominiumbywaterfrontagelocation Table5AverageCondominiumAssessedValuebyWaterhontageTypeTotalCondoUnitsAverageCondoAssessedValueCondosBeach32496305AcrossfromtheBeach11536384OtherLakePadreCanal39932730SorNuecesCountyAppraisalDistrictEconomicsRearchAociatesThefollowingtableshowscondominiumpropertiesbylocationacreagenumberofunitsandaveragecondominiumassessedvalueTable6CondominiumPropertiesintherZFDiLctPropertyNameWaterAcreageTotalTotalFrontageLandImprovementsLocationValueElConstanteBeachfrontPlxeIslandBeachfrontCulfstramLaCasaDel8olLakePadreLakeshoreVillasLakePadreLeewardIslesLakePadreLeewardCoveLakePadreLorimPlaceCaue12blsfixmbeachMysticPacChannelSeahorseAcrossthesUetfromNautilusGaliciaAcrosstBeachPiratesCrossingLakePadreSesscapeVlPortofinoBeachfrontMmrineCayCmlal2blocksfxombeachPadreIslandAcsstheSurfsidestrefromPacIsleIslandBeachfront8smdDollarCanalTotalToalTotalNumberAvAssessedTaxableofUnitsCondoValueValueValue305531178531712458483025581554698475847888566913272754141584231323923913010891107094134889071983205983205244096712615355215865441740096145983524725042581688102761688293049828971688733684061756325855216611536461531641322043716503033353749853749851037499094122904118500213079061175954324087210378814118935812681721017892264877610367502121928912867911051791452859505318459112334051417996133795936393892314835385372008585554651306655311048235153954424971963036740226174013622329155135036149415216291881464188443702733152814248122725340414509742972741720374818455845860664236664234178422799416888044277177484460574408639883857812SoursNuecesCountyAplwaisDistrictEconomicsResemchAssociatesIFAndyMIfarNorthPmlreblBndFklMPge8 Beachpropertiesotherthancondominiumsaremadeupof31vacantparcelsandonedevelopedparcelwhichistheHolidayInnwithanassessedvalueof45millionThereare12vacantparcelsthatrangeinsizefromonetoapproximatelysevenacreswiththelargestbeing698acresMostoftheremainderparcelsareapproximatelyhalfanacreThereare10051acresparcelsthatarevaluedat56250eachoranaverageof110294peracreThesearethemostvaluedparcelsonthebeachThenextthreetablessummarizepropertiesbyTaxIDThefirsttablelistsallpropertiesonLakePadrethesecondtableshowsallotherCanalPackeryChannelnonclassifiedwaterfrontpropertiesthatarenonexemptandthelasttableshowsallexemptpropertiesTable7LakePadrePropertiesbyTaxIDTAXIDTotalLandTotalTotalTotalAcreageValueImprovementsAsessedTaxableValueVatue618016367418206712457412244498220856185113634101136341113634123756175225114658802909942909945016125130930252191136149313614932860561952835150283515283515135Total45910139387425529755551732547066SourceNuecesCountyAppraisalDistrictEconomicsRehashAssociatesTable8OtherNonExemptWaterFrontPropertiesTAXIDTotalLmdTotalTotalTotalValueImprovementsAssessedTaxableValueValue3730152759111409264168264168479379119927644710676461067646617058475205847525847526205735000073500073500011151740190174019174019171779505128198013614851229343Total2517234166983641870704054928SourceNuecesCouatyAppraisalDiaictEconomicsResearchAssociatesAcreageLegalDescription805IslandFainvayEstates675MarinersCayLots758PADREISLANDSECB60PADREISLANDSEC1813886BRYANWMSUR606LS64129964ACSICL100CompassTownhomes1322224TFAnMMiforNorthPmfrelandFImiPage9 Table9ExemptPropertiesTAX1111500000010111500000050373000030050616500451400619000000005625200000010625200000020TotalNameAereeSTATEOFTEXAS13887STATEOFTEXAS403FLOURBLUFFINDSCHOOLDI65CITYOFCORPUSCHRISTI346STATEOFTEXAS0NUECESCO20NUECESCOUNTYTRUSTEE3020286GrowthRatesUsingavailabledataERAconductedtrendanalysisforvariousareastoestablishatrendinpropertygrowthratesonPadreIslandandintheparticipatingjurisdictionsThesegrowthratesarelaterusedintheforecastmodelstoestimateTIFrevenuePadreIslandUsingmicroleveldataERAcompiledtheassessedvaluesforallpropertiesinNorthPadreIslandfrom1992to2002In1992totalassessedvalueforpropertiesonLakePadreandonthebeachwerehighanddecreasedinthefollowingyearsThisisthemainreasonforthenegativeCAGRforbeachpropertiesandthesmallfigurelessthanonepercentforLakePadrepropertiesforthe10yearperiodNorthPadreIslandintotalincludingwaterfrontandnonwaterfrontpropertieshadaCAGRof91iepropertiesgrewonaverage91peryearbetween1992and2002ThefollowingtablesummarizesgrowthratesforPadreIslandbylocationofpropertiesTable10PadreIslandGrowthRatesbyLocalon19922002YearPadreIslandWaterfrontLkeaeachAllPropertYCondosPmbeCAGR1992200291065996077396CAGR199320021014727545230ourceNuecesCountyAppraisalDistrictEconomicsReseoaAssociatesOtherNonWaterfrontWaterfront2031019239001106TFAndysbforNorthPmJreIdmdFirmlPeql810 RevenueConclusionsThefollowingtablessummarizetheTHDistrictsestimatedtaxablevaluegrandtotaltaxrevenueandtheincrementaltaxrevenuefrom2001through2022Scenario1reflectsanoverallaverageannualgrowthrateof91from2003through2012andanannualgrowthrateof3from2013onwardsScenario2reflectsannualincreaseintaxablevalueof24forpropertiesonLakePadreandotherwaterfrontpropertiesexcludingbeachpropertiesBeachpropertiesexistingcondominiumpropertiesandpropertieswithoutwaterfrontageincrease9intaxablevaluefrom2003through2007and3from2008onwardsTable11Scenario1TIFDistrictTaxableValueandRevenue20012022TaxableValueGrandTotalTaxRevenueIncrementalTIFRevenueAccumulatedTIFRevenue20012005200620102011201520162020590873474909709774130040602115233209948553266118997301596486418701553233811062510111069377013430459233811085891221928289132713350S0ureCityofCorpusCluistiNuecesCountyAppraisalDistrictandEconomicsResemchAssociates20212022675226929828964661812o938894559Table12Scenario2TIFDistrictTaxableValueandRevenue20012022TaxableValueGrandTotalTaxRevenueTIFRevenueAccumulatedTIFRevenue200120052006201020112015201620206018089489126351631072871721124375237187115641197161013171464152693362496408632289179003709998242249640888192991671966926717912SourceCityofCorpusChristiNCountyAppTaisalDistrictmxdEconomicsResechAssociates202120225513054026768283465984531377757TFAnalyMfroNmMtPadrIRmd11 ThefollowingexhibitshowsthegrowthintheTIFrevenuefrombothscenariosExhibit1TFRevenueScheduleScenariosIand2TrFAndylbforNorthbimldFinalPage12 ThefollowingtableshowstaxablevaluesgrandtaxrevenueandincrementalrevenuefromthetwoscenariosinthousandsofdollarsTable13TIFTaxableValueandTaxRevenueScheduleScenarios1and200Z02000sYARTAXABALVALLrGRANDTAXREVENUScenario1Scenario2ScenarioIScenario2Scenario1Scenario22001985149851414261426183183200210758910758915571557314314200311737611880316991720456477200412794013137918521902609659200513945514552420192107776864200615200616148321342267928106120071656861795462253244110851274200818059818493223762433124613032009196852190480250324221411133020102145681961942634240915801354201123388020208028712481181714272012254929208143313025552075150120132625772143873224263221691578201427045422081933202711226616572015278567227443342027922366173820162869242342663523287624681822201729553224129436282962257419082018304398248533373730512683199720193135302559893849314327952089202032293626366939653237291021832021332624271579408433343029228020223426032797264206343431522380TOTAL63409589249993743823743889531378CityofCorpusChristiNtmcesCountyDistrictandEconomics ReinvestmentZoneNumberTwoCityofCorpusChristiTexasEXHIBITBMaiExbtingUsesandConditionsintheZone PadreTaxIncremenFinancingexssceInFeetCopyright19892001CityofCorpusChristiLEGENDJIFAreatotalacreageIOOCorpusChristiCityLimitLineTIFAreaBoundaryLineCityOfCorpusChristiPlanningDepartment ReinvestmentZoneNumberTwoCityofCorpusChristiTexasEXHIBITCMapProposedImprovementsandProposedUsesofRealPropertyintheZone LegendSrceDepartmentofDevelopmentServices ReinvestmentZoneNumberTwoCityofCorpusChristiTexasEXIHBITDProjectCostsandEstimatedCashFlows ProlcoLandeasementsROWDemolitionUtilityrelocationSitepreparafloReach2MobizationdemobilizationOglrFIMobilizationdemobilizationOrerigOveiepthPlacementinplacementareasConcretebulkheadsAnchoredconcretebulleeadszetewalkwayPbmflingegirmringdesignMalfltenaocedredgimeeweaMoleBeattJemonitoringPaddngbtbpavsreaeancenterbFinancingcentJngencyreseesrounding23620082670153530208347292135421040733642667647742192597748242004868811704083164736029392t10293919100013483834719348764492912120101924218928784252361488332764034837741693213144531382386483835898551239894829463154043100000032142111249720892474304126006448297797388003408580633022000015023095258089765012737680958t8817794921817840636174118t46614000001400000012500004375008125005410001893503516507500007S0000020000002000000014106831410r683346595131574527418914240Fuadlng8ureeCoqsofEngineers18914240Sees2003Bonds25000002500000Sees2005Bonds43300004330000SuqflusTaxrementsorBodsb3000000300010003465951315745273aMalntenancedredgingreserveeilhertobefinancedfromtheproceedsofSeries2005BondsorasfindsbecomeavailablefromsurlustaxIncrementsorammblnationthereofbParksrecreationcenterandparkinglottobellnanedasfundingbecomeavallahM1891424018914240 South Padre Island DR (Park RD 22)Padre Island Country Club Co. Park State Hwy 361Zahn RD State of Texas J.P. Luby Park Windward DRState of Texas Beach Access RD 4Packery Channel Padre Balli County Park Whitecap Blvd Palmira DRPadre Island Tax Increment Finance District Source: Department of Development ServicesMDN 2/20/03 µ 0 0.25 0.50.125 Miles Legend Parcels TIF Area BAY CRT WESTDRIVE COURTBELLODRIVE NEMOCOURTARUBADRIVEDYNASTREETMIZZENSTREET DYNASTREETSTATEHWY361 WHITECAPBLVD GYPSYSTREETZAHNROAD GRANDDUNECRTCATBOATCOURT BEACHACCESS3A RD CROWN ROYALDR. P O R T S 'O C A L L D R .P A L O S E C O D RIV E JOLLYROGERSTREET PUNT AE S P ADAL OOP SANDDOLLARAVENUECABANAEASTSTREETPADREISLANDDRIVE ( PARKROAD22 )( PARKROAD22 )CABOBLANCODRIVEB E A C HA C C E S S 6 R DELIFFROADCITY OF CORPUS CHRISTI, TEXASTIRZ #2 Legend TIRZ #2 µ 0 3,000 6,0001,500 FeetPrinting Date: 8/26/2009File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\tirz2.mxdPrepared By: MikeN© City of Corpus C hristi, Texas STATE HYW 361W H I T E C A P PARK RD 22CITY OF CORPUS CHRISTI, TEXAS TIR Z #2Current Land Use Legend TIRZ #2 Current Land Use Vacant Water Natural Area Wetland Drainage Corridor Park Low Density Residential Medium Density Residential High Density Residential Mobile Home Professional Office Commercial Public-Semi Public; PSP Light Industrial Heavy Industrial µ 0 2,900 5,8001,450 FeetPrinting Date: 8/26/2009File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\clu.mxdPrepared By: MikeN© City of Corpus C hristi, Texas STATE HYW 361W H I T E C A P PARK RD 22R-1B AT B-2A/IO A-1/IO R-1B/SP/01-11 B-4 B-2/IO R-2 A-1/IO B-2A/IO/SP/96-12 AT/IO AT AT AT/IO A-2 B-2A/IO/SP/96-06 AT/IO R-1B/IO AT AT/IO B-2A F-R/IO B-2A B-2A/IO/SP/97-09 B-2A/IO/SP/98-08 R-2 R-1B B-2/IO R-2 B-2A A-1 R-1B/PUD-1/IO R-1B/PUD-2 F-R/IO AT/SP/01-11 R-1B/IO A-2 B-2A/IO R-1B/IO B-2/IO F-R AT/PUD-2 CITY OF CORPUS CHRISTI, TEXAS TIR Z #2Zoning Legend TIRZ #2 Zoning µ 0 2,700 5,4001,350 FeetPrinting Date: 8/26/2009File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\zoning.mxdPrepared By: MikeN© City of Corpus C hristi, Texas STATE HYW 361W H I T E C A P PARK RD 22CITY OF CORPUS CHRISTI, TEXAS TIR Z #2Future Land Use Legend TIRZ #2 Futu re Land Use Conservation/Preservation Water Natural Area Wetland Vacant AR Drainage Corridor Park Estate Residential Low Density Residential Medium Density Residential High Density Residential Mobile Home Professional Office Commercial Research/Business Park Tourism Public-Semi Public Light Industrial Heavy Industrial µ 0 2,750 5,5001,375 FeetPrinting Date: 8/26/2009File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\flu.mxdPrepared By: MikeN© City of Corpus C hristi, Texas PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS 1 Packery Channel South Parking Lot Improvements This project consisted of the demolition of existing facilities,construction of approximately 11,500 square yards of new flexible pavement,parking lot,two concrete driveways,minor water and wastewater improvements,landscaping improvements, lighting improvements, and concrete pedestrian ramp. $640,447 Completed March 2006 Projects Include: Packery Channel Monitoring FY 2008-2009 Complete Packery Channel Monitoring FY 2009-2010 Complete Packery Channel Monitoring FY 2010-2011 Complete 2 Packery Channel South Parking Lot, Landscaping Phase 2 This project consisted landscaping and irrigation improvements to the newly constructed 300-space parking area including the construction of new planting islands with mexican fan palms, sea grape trees, decorative rock and irrigation. $145,461 Completed March 2008 3 Packery Channel Boat Ramp Parking Lot / Access Road This project consisted of the construction of approximately 17,000 square yards of HMAC flexible pavement parking facility adjacent to the existing Packery Channel Boat Ramp;construction of an access road and related signage and pavement markings, and the installation of 1,000 square yards concrete reinforced pavement adjacent to boat ramp,concrete bollards;minor drainage improvements;3,500 linear feet of electrical conduits; and minor landscaping. $1,053,176 total project cost. $549,216 from TIRZ #2 Completed July 2009 4 Packery Channel Boat Ramp Dredging This project consisted of dredging approximately 17,800 cy of the Packery Channel Boat Ramp and adjacent area.The work included environmental control measures to prevent erosion and allow for discharge of water from the dredging operations to discharge into the surf of the Gulf of Mexico.Minor amount of stone were installed at the boat ramp to enhance shoreline protection. $431,377 Completed April 2010 5 Packery Channel South Parking Lot Restroom (Phase 1) This project included the construction of restroom facilities at the South Parking Lot at the beach seawall on Windward Drive.The project included separate men and women facilities to with showers, toilets, changing stations, outdoor seating area, and native landscaping. $460,743 Completed July 2010 6 Packery Channel Parking Lot and Overlooks (Phase 2) This project consisted of improvements along the north and south sides of Packery Channel including seven overlook structures,parking lot,access road,pedestrian walkways,storm water structures lighted bollards with electrical receptacles,lighting,landscaping,concrete benches and repairs to shoreline structures. $2,869,224 Completed March 2012 7 Packery Channel Aids to Navigation / Signage This project consisted of lighting improvements to Packery Channel as required for safety and security along with signage to mark no wake zones. Per ISAC, additional funds needed to replace signs following Hurricane Harvey. $64,500 Completed December 2012 7a Packery Channel Aids to Navigation / Signage - Hurricane Harvey Repairs Per ISAC, additional funds needed to replace signs completed in Project 7 following Hurricane Harvey. Revised 2/20/18 $65,000 $7,166 Completed April 2019 PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 page 1 of 3 6/3/2019 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 8 Packery Channel Restroom Facilities (Phase 3) This project consists of the purchase and installation of a mobile restroom on the north side of the Packery Channel and adjacent parking lot.The project also includes turn-around and connector to Zahn Road.A mobile trailor restroom on the south side of Packery Channel with wastewater lift station and wastewater 2-inch force main (approximately 2,500 linear feet long)is also being planned.Priority Item.P&R recommends self contained,solar powered mobile units to be placed at Packery Channel Parking Lot,end of Zahn Road and on South side of PC (at a location yet to be determined)Build and Install portable restroom shelters to hold portable restroom units at various locations.Build and Install Portable Shower units on the North and South side of Packery Channel.Board approval of 4 portable restroom facilities at $65,000 each plus 20%contingency and shower facilities at $100,000 total. Revised 2/13/2018 $412,000 $402,000 Solar Powered Units: Complete. Showers: Partial Water line installed Spring '18. Waiting on BCC permit. 9 Packery Channel Ramps to Jetties (Phase 4) This project includes ADA beach access on the north side and the south side or the channel to provide access from the beach to the restroom,lookouts and parking lots.This project will include the ADA approved mobi-mats on the north side and the south side of Packery Channel to provide access from the beach to the restrooms,lookouts and parking lots.This project was designed as part of the Phase 2 project for parking and overlooks.Priority ITem:P&R recommends a new design for structures since the GLO will not approve construction of parking lots on the beach.For Mobi-Mats per ISAC recommendation. Revised 2/20/18 $35,000 $8,979 Complete 10 Packery Channel Dredging and Beach Nourishment - 2012 The project consisted of dredging approximately 264,300 cubic yards of beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline to the south of Packery Channel,and 15,000 cubic yards of sand from the north to south end of the N.Padre Island Seawall.Dredging schedule to be determined by results of annual study of channel. $1,820,843 Last Completed March 2012 10a Packery Channel Dredging and Beach Nourishment - 2020 The project consisted of dredging beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline.Dredging schedule to be determined by results of annual study of channel. $350,000 In permitting process. Waiting to hear from USACE. page 2 of 3 6/3/2019 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 11 Packery Channel Pavilion (Phase 5) This project includes the pavilion expansion adjacent to the north side restroom or north side boat launch.This will allow the deck area around the restroom and some sitting areas for visitors. Design will begin in FY 2016 and construction will follow in FY 2017 dependent upon available funding.P&R recommends further discussion on this item to determine if another amenity would better suit the area.ISAC recommends Pavillion staged at the boat ramp parking lot as well as pavillion like structure on north and south side of the jetty. Revised 2/20/18 $250,000 Requesting Addt'l $23,000 Estimated completion: Fall 2019. At 90% Design 14 Periodic Survey of Channel Conditions and Shoreline Packery Channel monitoring began in 2003 by Texas A&M Division of Nearshore Research by the U.S.Army Corps of Engineers.They ceased monitoring efforts in 2007 and the City assumed monitoring in 2008.The program includes the collection of bathymetric data in Packery Channel and the surrounding nearshore,measurement of elevation along the adjacent beach and inland channel segment (shoreline position),elevation measurements across the Mollie Beattie Coastal Habitat Community, and measurement of current velocity in the inland channel segment. Increase from $205,000 to $286,000 $1,847,312 (Lifetime Expenses to Date) 2018 monitoring complete. 2019 Contract Executed 3/29/19. 15 Packery Channel Revetment Repair Storm surge, strong currents, and waves from Hurricane Harvey caused damage to the slope protection and adjacent appurtenances along the banks of Packery Channel between the SH 361 bridge and the Gulf of Mexico. Repair concepts will be developed for two alternatives; one to return the project to its approximate pre-storm conditions, and another to upgrade the project to an improved condition that is more resilient to future storm impacts. The City will procure a design consultant through the RFQ process, and the selected firm will prepare the construction plans. Post design, construction will be procured. Added 2/13/18 $600,000 $417,027 60% submittal under review. 16 Park Road 22 Bridge On February 21, 2017, the TIRZ #2 board met and approved the amendment of using funds from TIRZ #2 to support the construction of two one-way bridges spanning Park Road 22. City Council approved this amendment on February 20, 2018. Added 2/20/2018 $4,000,000 $0.00 Waiting for developer on canals. 17 Beach Crosswalk at St. Augustine & Windward Dr. Per request of the Island Strategic Action Committee: Traffic improvement on Windward Drive at Saint Augustine Drive, for pedestrian crossing on Windward Drive to facilitate access to and from Michael J. Ellis Beach. Scope of work includes: crosswalk, access ramps, traffic signs, and pavement markings. Estimated costs are $23,000 for the crossing and associated traffic improvements; $9,000 for solar powered flashing LED crossing signs. $32,000 $20,331.00 Completed February 2019. 18 Feasibility Study Per Texas Tax Code Sec. 311.011. Project and Financing Plans. (c) Reinvestment zone financing plans must include (3) a finding that the plan is economically feasible and an economic feasibility study.$50,000 $33,173 Draft Complete 19 Contingency for all Projects Project contingency fund for all projects. $100,000 page 3 of 3 6/3/2019 Account Number Account Description Actual Revenues 2016 - 2017 Original Budget 2017 - 2018 Amended Budget 2017 - 2018 Estimated Revenues 2017 - 2018 Proposed Budget 2018 - 2019 Reserved for Encumbrances 910,000$ 990,000$ -$ Reserved for Commitments 6,082,624 8,260,716 11,957,165 Unreserved - - - Beginning Balance 6,992,624$ 9,250,716$ 11,957,165$ Property Taxes 300020 RIVZ#2 current taxes-City 2,055,446$ 2,307,516$ 2,307,516$ 2,307,516$ 2,412,597$ 300050 RIVZ#2 current taxes-County 1,037,197 1,164,191 1,164,191 1,164,191 1,171,473 300060 RIVZ #2 current taxes-Hospital 428,228 480,716 480,716 474,497 488,618 300110 RIVZ#2 delinquent taxes-City 28,284 20,753 20,753 19,015 18,998 300130 RIVZ#2 delnquent taxes-Del Mar 20 - - 1 - 300140 RIVZ#2 delinquent taxes-County 15,268 12,040 12,040 10,384 10,500 300150 RIVZ#2 delinqnt taxes-Hospital 6,341 4,927 4,927 4,550 4,600 300210 RIVZ#2 P & I - City 33,489 26,662 26,662 24,958 25,000 300230 RIVZ#2 P & I - Del Mar 22 - - 2 - 300240 RIVZ#2 P & I - County 17,108 14,027 14,027 11,723 12,001 300250 RIVZ#2 P & I-Hospital District 7,108 7,923 7,923 7,180 7,201 Property Taxes Total 3,628,510$ 4,038,755$ 4,038,755$ 4,024,017$ 4,150,988$ Interest and Investments 340900 Interest on Investments 24,212$ -$ -$ 78,865$ 130,000$ 340995 Net Inc/Dec in FV of Investments (806) - - 806 - Interest and Investments Total 23,406$ -$ -$ 79,671$ 130,000$ Interfund Charges 352000 Transfer from Other Fund -$ 757$ 757$ 757$ -$ Interfunds Charges Total -$ 757$ 757$ 757$ -$ Revenue Total 3,651,917$ 4,039,512$ 4,039,512$ 4,104,445$ 4,280,988$ Total Funds Available 10,644,541$ 13,355,161$ 16,238,153$ Note: City of Corpus Christi - Budget Reinvestment Zone No. 2 Fund 1111 Revenue Detail by Account Reinvestment Zone #2, commonly referred to as Packery Channel was created pursuant to the Tax Increment Financing Act to facilitate development of the land within the boundaries of the tax increment zone. The Zone became effective on November 14, 2000. The funding source is post-2000 incremental property taxes from taxing units with property within the boundaries of the zone. Org. Number Organization Name Actual Expenses 2016 - 2017 Original Budget 2017 - 2018 Amended Budget 2017 - 2018 Estimated Expenses 2017 - 2018 Proposed Budget 2018 - 2019 11305 TIF02 Projects Infrastructure -$ -$ -$ -$ 650,000$ 12960 Packery Patrol Operations 32,781 - - - - 55000 Principal retired 990,000 1,070,000 1,070,000 1,070,000 1,240,000 55010 Interest 353,700 309,150 309,150 309,150 261,000 55040 Paying agent fees 5,694 6,000 6,000 6,000 6,000 60010 Transfer to General Fund 11,649 12,846 12,846 12,846 13,929 Expenditure Total 1,393,824$ 1,397,996$ 1,397,996$ 1,397,996$ 2,170,929$ Reserved for Encumbrances 990,000$ -$ -$ Reserved for Commitments 8,260,716 11,957,165 14,067,224 Unreserved - - - Closing Balance 9,250,716$ 11,957,165$ 14,067,224$ City of Corpus Christi - Budget Reinvestment Zone No. 2 Fund 1111 Expenditure Detail by Organization MARKET AND ECONOMIC FEASIBILITY STUDY UPDATE Tax Increment Reinvestment Zone #2 Corpus Christi, Texas Prepared for: Prepared by: The City of Corpus Christi Economic Development Office P.O. Box 9277 Corpus Christi, Texas 78469‐9277 September, 2009 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette i TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................................. i TABLE OF EXHIBITS ................................................................................................................................ ii INTRODUCTION ..................................................................................................................................... 1 ECONOMIC AND DEMOGRAPHIC OVERVIEW ......................................................................................... 2 Regional Economic Trends ......................................................................................................................... 2 Employment trends .................................................................................................................................... 2 Corpus Christi Regional Economy ............................................................................................................... 5 Demographic Trends .................................................................................................................................. 6 Regional Demographics ......................................................................................................................... 6 Regional Demographic Trends ............................................................................................................... 7 City of Corpus Christi Demographics ...................................................................................................... 7 TIRZ Demographics ................................................................................................................................ 9 MARKET OVERVIEW ............................................................................................................................ 13 TIRZ #2 Development Trends ................................................................................................................... 13 Residential ................................................................................................................................................ 14 Commercial .............................................................................................................................................. 15 Multi‐Tenant Commercial Uses ............................................................................................................ 15 Tourism and Hospitality ....................................................................................................................... 16 PROPERTY ACCOUNT AND TIRZ VALUE ANALYSIS ................................................................................ 17 Historical Value Trends ............................................................................................................................. 17 TIRZ Value Estimation and Projection ...................................................................................................... 19 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette ii TABLE OF EXHIBITS Corpus Christi MSA Employment Trends ................................................................................................ 3 Map of Corpus Christi MSA .................................................................................................................... 2 Corpus Christi MSA Employment Growth .............................................................................................. 2 2007 Major Employers – Corpus Christi MSA ......................................................................................... 4 Corpus Christi MSA Job Growth ............................................................................................................. 5 County Population and Employment Forecasts ...................................................................................... 5 Corpus Christi MSA Demographic Overview .......................................................................................... 6 Net Population Migration ...................................................................................................................... 7 Population and Age Trends – City of Corpus Christi Total ....................................................................... 8 City Population and Employment Forecasts ........................................................................................... 8 TIRZ #2 Map .......................................................................................................................................... 9 Population and Age Trends in TIRZ #2 .................................................................................................. 10 Household Characteristics ................................................................................................................... 11 Household Size .................................................................................................................................... 11 Household Income Distribution ........................................................................................................... 12 TIRZ #2 Building Permit Trends ............................................................................................................ 13 Median Home Sale Prices .................................................................................................................... 14 Trends in Home Sale Prices .................................................................................................................. 15 Historical TIRZ #2 Taxable Assessed Value Compound Annual Growth Trends ..................................... 18 Estimation of Current TIRZ Value by Property Class ............................................................................. 20 Projected Increases in TIRZ Values by Property Class ........................................................................... 20 Tortuga Dunes Value Schedule ............................................................................................................ 20 Participating Jurisdiction Base Year Values .......................................................................................... 20 Project TIRZ #2 Assessed Value by Participating Jurisdiction ................................................................ 20 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 1 INTRODUCTION This report is an update to two previous reports prepared by Economics Research Associates for City of Corpus Christi Tax Increment Zone #2 (TIRZ #2) in 2000 and 2002. It discusses the current economic and market conditions affecting the TIRZ. These conditions provide the foundation to an updated set of TIRZ #2 assessed value projections provided at the end of this report. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 2 Map of Corpus Christi MSA Corpus Christi MSA Employment Growth Source: Texas Workforce Commission, Texas A&M Real Estate Center 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 185,000 ‐2.0% ‐1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%1997199920012003200520072009EmploymentPercent Employment GrowthECONOMIC AND DEMOGRAPHIC OVERVIEW Regional Economic Trends The Corpus Christi Metropolitan Statistical Area (MSA) includes Aransas, Nueces and San Patricio Counties, illustrated in the map on the right. The city of Corpus Christi is the economic center of the MSA and the larger region served by the Coastal Bend Council of Governments. The region currently has a population of 417,000 and an employment of 180,000. Employment trends The employment growth of the region has been positive with a compound annual growth rate of slightly over 1.0% since 1997, roughly approximating the U.S. employment growth. However, the current national economic climate has brought a recent decline in employment in the region. The table on the following page illustrates the employment by selected economic sectors from 2000 to July 2009. From an economic base standpoint, the strongest sectors are mining and construction. Other significant growth is occurring in the sectors, “educational and health services” and “leisure and hospitality” which accounted for 54% of the growth from 2000 to July 2009. The sectors in the Corpus Christi MSA that have seen little job growth are manufacturing (due partly to technological advances) and information services. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 3 Corpus Christi MSA Employment Trends NAICS Industry Annual Average Employment Change 2000 2005 2007 2009* 2000 ‐ 2005 2005 ‐ 2009 Total Nonfarm Employment 166,100 170,000 177,100 180,100 3,900 10,100 Total Private 134,500 137,600 144,200 146,857 3,100 9,257 Goods Producing 28,700 28,200 31,500 31,129 ‐500 2,929 Mining and Construction 15,700 17,600 20,500 20,700 1,900 3,100 Construction of Buildings 6,200 5,500 6,400 6,471 ‐700 971 Manufacturing 13,100 10,600 11,100 10,429 ‐2,500 ‐171 Service Providing 137,300 141,800 145,600 148,971 4,500 7,171 Private Service Providing 105,800 109,400 112,700 115,729 3,600 6,329 Trade, Transportation, and Utilities 29,900 30,500 31,800 32,371 600 1,871 Wholesale Trade 5,100 5,300 5,600 5,686 200 386 Retail Trade 19,300 20,100 20,800 21,043 800 943 General Merchandise Stores 4,100 4,300 4,100 4,400 200 100 Transportation, Warehousing, and Utilities 5,400 5,100 5,400 5,643 ‐300 543 Information 3,200 2,600 2,500 2,329 ‐600 ‐271 Financial Activities 7,700 7,700 8,200 8,129 0 429 Finance and Insurance 4,700 4,700 4,900 4,900 0 200 Professional and Business Services 16,300 16,200 16,300 16,429 ‐100 229 Admin/Support/Waste Mgmt & Svcs 10,600 9,900 9,500 9,657 ‐700 ‐243 Educational and Health Services 24,100 26,100 26,600 28,786 2,000 2,686 Hospitals 7,200 8,000 7,500 7,943 800 ‐57 Leisure and Hospitality 17,700 19,800 20,700 20,557 2,100 757 Other Services 6,900 6,400 6,600 7,129 ‐500 729 Government 31,600 32,400 32,900 33,243 800 843 Federal Government 5,800 6,200 6,500 6,629 400 429 State Government 4,400 4,500 4,600 4,943 100 443 Local Government 21,400 21,600 21,800 21,671 200 71 Source: Texas Workforce Commission, 2009 * 2009 Data is averaged through July Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 4 2008 Major Employers – Corpus Christi MSA Employer Type of Product or Service Civilian Employment CHRISTUS Spohn Health System Hospital 5,400 Corpus Christi ISD School District 5,178 H.E.B. Grocery Company 5,000 Corpus Christi Army Depot Helicopter Repair 4,876 City of Corpus Christi City Government 3,171 Bay, Ltd. Industrial Construction 2,100 Naval Air Station‐ Corpus Christi Flight Training 1,630 Del Mar College Junior College 1,542 Driscoll Children’s Hospital Hospital 1,500 Corpus Christi Medical Center Hospital 1,300 First Data Corporation Teleservices 1,200 Susser Holdings Corporation Convenience Stores 1,100 Nueces County County Government 1,034 Texas A&M Corpus Christi Four‐year University 991 Flint Hills Resources Crude Oil Refining 920 Kiewit Offshore Services Offshore Rig Manu. 900 Corpus Christi State School Special‐needs Facility 850 Valero Refining Crude Oil Refining 824 Sherwin Alumina Alumina 800 Sam Kane Beef Processors Beef Processing 800 Flour Bluff ISD School District 750 Source: Corpus Christi Regional Economic Development Corporation, Regional Profile, June 2009 The table on the right lists the major employers in the Corpus Christi MSA. Government agencies (local and military) and health care institutions disproportionately represent the major employers in the region. The scheduled closing of the Naval Station Ingleside will adversely impact the regional economy but will not likely be devastating. According to the 2005 Report1 on the announced closings, direct job losses in the three facilities will total 3,154 and the indirect job loss of 3,879 for a total of 7,033 jobs lost (4% of regional employment). There is some concern over the future of the Corpus Christi Army Depot helicopter repair center when the US involvement in Iraq and Afghanistan is reduced. The impact is unknown at this time. 1 Report of the Impact of the 2005 Base Realignment and Closure Committee Recommendations for Naval Station Ingleside, Naval Station Corpus Christi, and Corpus Christi Army Depot, prepared by Impact Data Source, December 2005 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 5 Corpus Christi MSA Job Growth Compared with Texas and the U.S. Graphic From: VISTA, South Texas Economic Trends and Issues, Corpus Christi: An Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Winter 2007/2008 County Population and Employment Forecasts 2006 2035 Change CAGR* Population Nueces County 325,745 443,722 117,977 1.1% San Patricio County 83,821 117,856 34,035 1.2% Total 409,566 561,578 152,012 1.1% Total Employment Nueces County 159,863 231,844 71,981 1.3% San Patricio County 18,204 25,617 7,413 1.2% Total 178,067 257,461 79,394 1.3% * CAGR = Compound Annual Growth Rate Source: Corpus Christi Metropolitan Planning Organization Corpus Christi Regional Economy The Corpus Christi regional economy has two strong underpinnings: 1) a strong industrial base and 2) a healthy tourism industry. According to a recent report from the San Antonio office of the Federal Reserve, the Corpus Christi economy has grown consistently, tracking the U.S. economy since 1987 (See chart at the right). Oil prices have been a key driver of the regional economy in the past but the oil price spike of 2006 and 2007 was not felt significantly in Corpus Christi. Future economic growth in the Corpus Christi region is expected to less dependent on the oil and gas sectors and be generated by: • the expansion of trade through the port, • becoming a center for alternative energy sources (stimulated by the wind energy research activities being proposed for the area), • tourism, and • a burgeoning retirement community. Population and Employment Forecasts The table on the right illustrates the population and employment forecasts produced by the agency responsible for transportation planning in the region. Aransas County is not included because it is not in the MPO’s planning area. The key result is that local planners are expecting long‐term moderate growth in the region, consistent with recent trends in the 1.0% to 1.2% range. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 6 Demographic Trends Regional Demographics The table below illustrates some recent demographic trends for the Corpus Christi MSA. Demographic data in this report is from PCensus for MapInfo, which is a reseller of Claritas, Inc. demographic data. According to PCensus estimates, over the past 9 years since the 2000 census, the region has added 14,201 persons (3.5%) and 9,128 households. The PCensus 2009 population estimate is reasonably close to the U.S. Census estimate for July 2008 of 415,376. Corpus Christi MSA Demographic Overview Characteristic 2000 Census 2009 Estimate 2014 Projection Count Share Count Share Count Share Total Population 403,280 417,481 428,381 Population by Age Age 17 and under 115,341 28.6% 112,513 27.0% 113,887 26.6% Age 18 and over 287,939 71.4% 304,968 73.0% 314,494 73.4% Age 65 and over 46,481 11.5% 52,951 12.7% 59,711 13.9% Median Age 33.6 35.2 35.4 Population by Ethnicity and Race Hispanic or Latino 212,703 52.7% 234,299 56.1% 248,264 58.0% White (Non-Hispanic) 165,523 41.0% 157,458 37.7% 153,838 35.9% Black or African American (Non-Hispanic) 14,788 3.7% 13,665 3.3% 13,120 3.1% Native (Non-Hispanic) 1,270 0.3% 1,421 0.3% 1,519 0.4% Asian (Non-Hispanic) 4,461 1.1% 5,280 1.3% 5,778 1.3% Pacific Islander (Non-Hispanic) 201 0.0% 207 0.0% 210 0.0% Other Race (Non-Hispanic) 409 0.1% 390 0.1% 381 0.1% Two or More Races (Non-Hispanic) 3,925 1.0% 4,761 1.1% 5,271 1.2% Households by Household Income Less than $15,000 $15,000 to $24,999 29,193 20.6% 25,569 17.0% 24,390 15.6% $25,000 to $34,999 21,252 15.0% 19,607 13.0% 18,878 12.1% $35,000 to $49,999 19,508 13.8% 18,634 12.4% 18,130 11.6% $50,000 to $74,999 23,703 16.8% 23,952 15.9% 24,027 15.4% $75,000 to $99,999 24,997 17.7% 28,354 18.8% 29,280 18.8% $100,000 to $149,999 12,134 8.6% 15,427 10.2% 17,009 10.9% $150,000 to $249,999 6,970 4.9% 13,086 8.7% 16,242 10.4% $250,000 to $499,999 2,635 1.9% 3,997 2.7% 5,484 3.5% $500,000 or more 836 0.6% 1,507 1.0% 1,818 1.2% Median Household Income 302 0.2% 586 0.4% 831 0.5% Source: PCensus for MapInfo, Tetrad Computer Applications, 2009 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 7 Net Population Migration Corpus Christi MSA Graphic From: VISTA, South Texas Economic Trends and Issues, Corpus Christi: An Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Winter 2007/2008 Regional Demographic Trends According to the previously cited report from the Federal Reserve, the Corpus Christi region’s recent population trends have been somewhat weak. One such measure of population growth is the net population migration. A region can have positive population growth because of a net number of births over deaths yet still have a net out‐ migration of people from the community. This appears to be the case for the Corpus Christi region in the last decade. Generally, if area businesses are prosperous and creating new jobs, the region will have net immigration. According to the Fed report, “Corpus Christi experienced positive net domestic migration through 1997, but it fell to negative in 1998, where it remained through 2003. Net domestic migration became positive again in 2004 and 2005, but just slightly. International immigration increased somewhat in the 1990s, but it too has experienced a general downward trend in the 2000s. Net internal growth has also slowed since the 1980s, with births decreasing and deaths increasing. Overall population growth and, in particular, net migration show Corpus Christi has grown sluggishly over the past two decades.” City of Corpus Christi Demographics The City of Corpus Christi has, within the municipal boundaries, over two‐thirds of the residents of the region with a current estimated population of 287,168. Like the region, the City’s growth over the past nine years has been modest (9,714 added, 3.5%). The table on the following page illustrates the historical and expected future population by age group. The population of the City is getting slightly older with most of the change occurring in the 35‐44 year old group. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 8 City Population and Employment Forecasts 2006 2035 Change CAGR* Population 294,075 399,328 105,253 1.1% Total Employment 156,632 223,715 67,083 1.2% * CAGR = Compound Annual Growth Rate Source: Corpus Christi Metropolitan Planning Organization Population and Age Trends – City of Corpus Christi Total Age Group 2000 Census 2009 Estimate 2014 Estimate Change Count Share Count Share Count Share 2000‐ 2009 2009‐ 2014 Total Population 277,454 287,168 294,563 9,714 7,395 Age 0 to 4 21,544 7.8%22,243 7.8%23,105 7.8% 699 862 Age 5 to 9 21,592 7.8%21,518 7.5%21,973 7.5% ‐74 455 Age 10 to 14 21,487 7.7%20,809 7.3%21,236 7.2% ‐678 427 Age 15 to 17 13,439 4.8%12,521 4.4%12,070 4.1% ‐918 ‐451 Age 18 to 20 13,329 4.8%12,791 4.5%12,697 4.3% ‐538 ‐94 Age 21 to 24 16,058 5.8%16,567 5.8%16,327 5.5% 509 ‐240 Age 25 to 34 37,792 13.6%37,792 13.1%39,694 13.5% 0 1,902 Age 35 to 44 43,275 15.6%36,898 12.9%35,129 11.9% ‐6,377 ‐1,769 Age 45 to 49 19,928 7.2%20,455 7.1%18,549 6.3% 527 ‐1,906 Age 50 to 54 16,657 6.0%20,261 7.1%19,715 6.7% 3,604 ‐546 Age 55 to 59 12,024 4.3%17,612 6.1%19,236 6.5% 5,588 1,624 Age 60 to 64 9,527 3.4%13,860 4.8%16,568 5.6% 4,333 2,708 Age 65 to 74 16,944 6.1%17,541 6.1%21,490 7.3% 597 3,949 Age 75 to 84 10,533 3.8%11,561 4.0%11,372 3.9% 1,028 ‐189 Age 85 and over 3,325 1.2%4,739 1.7%5,402 1.8% 1414 663 Age 16 and over 208,504 75.2%218,504 76.1%224,315 76.2% 10,000 5,811 Age 18 and over 199,392 71.9%210,077 73.2%216,179 73.4% 10,685 6,102 Age 21 and over 186,063 67.1%197,286 68.7%203,482 69.1% 11,223 6,196 Age 65 and over 30,802 11.1%33,841 11.8%38,264 13.0% 3,039 4,423 Median Age 33.2 34.8 35.1 1.6 0.2 Average Age 34.7 36.2 36.8 1.5 0.6 Source: PCensus for MapInfo, Tetrad Computer Applications, 2009 Population and Employment Forecasts for City of Corpus Christi The table at the right shows the forecast of population and employment provided by the MPO. The current estimates differ somewhat from other sources such as the Census. Nevertheless, the principal point of these forecasts is that they demonstrate long‐term growth rates consistent with past trends – continued slow growth. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 9 TIRZ #2 Map Source: The City of Corpus Christi TIRZ Demographics In the 2000 Census, only 908 persons resided in the designated for TIRZ #2 shown below. According to the PCensus estimates, that number increased by 288 persons to 1,196 in 2009. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 10 The population in TIRZ #2, as illustrated in the table below, has a marked lack of children and overall lack population under the age of 20. This population makes up only 12.2% of the total population in TIRZ #2, while this group comprises 31.5% of the population of the City of Corpus Christi overall. The TIRZ also has a higher share of persons over age 65. Population and Age Trends in TIRZ #2 Age Group 2000 Census 2009 Estimate 2014 Estimate Change Number Share Number Share Number Share 2000‐ 2009 2009‐ 2014 Total Population 908 1,196 1,343 288 147 Age 0 to 4 29 3.2%34 2.9%39 2.9% 5 5 Age 5 to 9 22 2.5%40 3.4%41 3.0% 18 1 Age 10 to 14 25 2.8%37 3.1%47 3.5% 12 10 Age 15 to 17 22 2.5%17 1.4%22 1.6% ‐5 5 Age 18 to 20 30 3.3%16 1.4%23 1.7% ‐14 7 Age 21 to 24 87 9.55%43 3.6%30 2.3% ‐44 ‐13 Age 25 to 34 168 18.5%209 17.4%180 13.4% 41 ‐29 Age 35 to 44 139 15.3%201 16.9%235 17.5% 62 34 Age 45 to 49 78 8.5%96 8.0%115 8.6% 18 19 Age 50 to 54 77 8.5%118 9.9%125 9.3% 41 7 Age 55 to 59 53 5.9%106 8.8%130 9.7% 53 24 Age 60 to 64 48 5.4%82 6.9%111 8.3% 34 29 Age 65 to 74 88 9.7%107 8.9%138 10.2% 19 31 Age 75 to 84 39 4.3%72 6.0%76 5.7% 33 4 Age 85 and over 1 0.2%18 1.5%30 2.2% 17 12 Age 16 and over 826 91.0%1,080 90.3%1,213 90.3% 254 133 Age 18 and over 808 89.1%1,068 89.3%1,195 89.0% 260 127 Age 21 and over 779 85.8%1,052 88.0%1,172 87.2% 273 120 Age 65 and over 129 14.2%196 16.4%244 18.1% 67 48 Median Age 40.3 45.0 47.4 4.7 2.3 Average Age 41.1 44.7 46.4 3.7 1.7 Source: PCensus for MapInfo, Tetrad Computer Applications, 2009 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 11 Household Size TIRZ #2 vs. Corpus Christi Average Household Size 2000 2009 2014 TIRZ #2 1.77 1.75 1.75 City of Corpus Christi 2.75 2.70 2.68 Source: PCensus for MapInfo, Tetrad Computer Applications, 2009 The tables on this page illustrate household characteristics for TIRZ #2 compared with the City of Corpus Christi. The overwhelming majority of households in the TIRZ being one‐person non‐ family and two‐person family households further illustrates of the lack of children in the TIRZ. In fact, the quantity of non‐ family households exceeds family households in the TIRZ; this is in stark contrast to the city overall, where there are more than twice the number of family households versus non‐ family households in the city. The table at the bottom of the page shows that the average household size was also substantially lower in the TIRZ (1.75) compared to 2.70 persons per household in the City. Household Characteristics TIRZ #2 Household Type 2000 2009 2014 Count Share Count Share Count Share Non‐family households 279 373 420 1 person 227 81.3%310 83.0% 351 83.7% 2 persons 46 16.6%56 15.0% 60 14.2% 3 persons 5 1.9%7 1.7% 8 1.8% 4 or more persons 1 0.4%1 0.3% 1 0.2% Family households 230 304 342 2 persons 168 73.0%222 73.1% 251 73.3% 3 persons 33 14.5%45 14.7% 50 14.7% 4 or more persons 28 12.2%37 12.2% 41 12.0% City of Corpus Christi Household Type 2000 2009 2014 Count Share Count Share Count Share Non‐family households 28,326 29,817 30,740 1person 22,956 25,094 84.2%26,203 85.2%85.4% 2persons 4,428 3,869 13.0%3,688 12.0%11.8% 3persons 633 605 2.0%600 2.0%1.9% 4ormorepersons 309 249 0.8%249 0.8%0.8% Family households 70,465 74,458 76,907 2persons 25,058 27,490 36.9%28,810 37.5%37.6% 3persons 17,334 18,629 25.0%19,341 25.2%25.2% 4ormorepersons 28,073 28,339 38.1%28,756 37.4%37.3% Source: PCensus for MapInfo, Tetrad Computer Applications, 2009 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 12 TIRZ #2 vs. Corpus Christi Incomes in Constant $ Measure Geography 2000 Adjusted 2009 Projection Change % Average household income TIRZ #2 $69,976 $57,359 ‐18.03% City of Corpus Christi $61,407 $57,050 ‐7.10% Median household income TIRZ #2 $53,460 $42,983 ‐19.60% City of Corpus Christi $46,734 $42,978 ‐8.04% Per capita household income TIRZ #2 $40,598 $32,468 ‐20.03% City of Corpus Christi $22,203 $21,009 ‐5.38% Source: PCensus for MapInfo, Tetrad Computer Applications, 2009 2000 Income statistics where adjusted to 2009 dollars using the CPI‐U The tables on this page illustrate the household income characteristics of the area in the TIRZ and the City of Corpus Christi. Overall, the income distribution in the TIRZ mirrors that of the City of Corpus Christi closely, except on a per capita basis; this is likely due the lack of children residing in the TIRZ. The table at the bottom of the page includes a comparison of average, median and per capita household income for the two geographies in constant 2009 dollars. According to the PCensus estimates, household incomes in the TIRZ are declining more than double the amount as the city as a whole. This may be due to the increasing number of retirees living in the TIRZ. Household Income Distribution TIRZ #2 vs. Corpus Christi – Nominal Dollars TIRZ #2 2000 2009 2014 Count Share Count Share Count Share Total Households 521 677 762 Less than $15,000 86 16.6% 109 16.1% 120 15.8% $15,000 to $24,999 51 9.7% 70 10.3% 79 10.4% $25,000 to $34,999 78 15.1% 91 13.5% 91 12.0% $35,000 to $49,999 97 18.7% 129 19.1% 150 19.7% $50,000 to $74,999 102 19.5% 125 18.5% 130 17.1% $75,000 to $99,999 55 10.6% 75 11.1% 91 11.9% $100,000 to $149,999 24 4.7% 39 5.8% 52 6.9% $150,000 to $244,999 21 4.1% 30 4.5% 37 4.9% $250,000 to $499,999 6 1.1% 7 1.0% 9 1.2% $500,000 or more 1 0.2% 1 0.2% 2 0.3% CORPUS CHRISTI Total Households 98,779 104,275 107,647 Less than $15,000 19,524 19.8% 17,241 16.5% 16,459 15.3% $15,000 to $24,999 14,684 14.9% 13,290 12.8% 12,739 11.8% $25,000 to $34,999 13,319 13.5% 12,869 12.3% 12,502 11.6% $35,000 to $49,999 16,639 16.8% 16,429 15.8% 16,382 15.2% $50,000 to $74,999 17,987 18.2% 19,825 19.0% 20,405 19.0% $75,000 to $99,999 8,734 8.8% 11,007 10.6% 12,008 11.2% $100,000 to $149,999 5,159 5.2% 9,302 8.9% 11,460 10.7% $150,000 to $244,999 1,873 1.9% 2,831 2.7% 3,852 3.6% $250,000 to $499,999 614 0.6% 1,039 1.0% 1,236 1.2% $500,000 or more 246 0.3% 442 0.4% 604 0.6% Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 13 TIRZ #2 Building Permit Trends Number of Permits 2003 2004 2005 2006 2007 2008 2009 Commercial New commercial shell only 1 3 6 New commercial building 2 9 3 2 Residential New apartments 1 New condo / townhouse 2 4 35 11 22 New single family 1 1 1 2 3 Permit Valuations 2003 2004 2005 2006 2007 2008 2009 Commercial New commercial shell only $227,000 $696,000 $1,887,693 New commercial building $346,600 $818,399 $1,042,410 $123,200 Residential New apartments $404,000 New condo / townhouse $0 $507,000 $4,388,632 $715,000 $5,418,400 New single family $ 4,000 $2,500 $82,000 $292,200 $383,600 Source: City of Corpus Christi MARKET OVERVIEW TIRZ #2 Development Trends The table below illustrates the 2003 ‐ 2009 record of building permits within TIRZ #2. Up to now, condominium and commercial development has dominated within the TIRZ, as opposed to single family homes. Commercial permitting for new shells or buildings occurred throughout the period (see the Commercial summary below). The most significant category of permitting was new condominiums or townhouses, particularly from 2006 to 2008, during which the City issued 68 permits for new construction. The most significant new development project planned for the TIRZ at the present time is Tortuga Dunes, located immediately north of the Packery Channel. This will be an upscale residential development with a strict Caribbean‐style architectural theme. Phase I of the development includes 92 single family lots plus townhome sites which are being marketed now. There is also land reserved for a Phase II with additional home lots and potentially condominiums. The developer projects the first homes to be built in 2010, with the pace of construction picking up rapidly in 2011. A Holiday Inn Express is reportedly planned for 14100 South Padre Island Drive. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 14 Residential A mix of second home owners, retirees, and locally employed residents drives the North Padre Island housing market. A check of the TIRZ #2 property accounts indicates that relatively few homes are owner‐occupied as a primary residence – only 204 accounts out of more than 1,500 total have claimed a homestead exemption. Nearly all residential properties in TIRZ #2 are classified as “condominium” by the Nueces County Appraisal district (1,499 condominium accounts vs. 13 single family, duplex, or triplex, plus one classified as “multifamily”). The residential market on North Padre Island is currently in turmoil due to the national economic and financial crisis, which has negatively affected residential mortgage borrowers. From 2005 to 2008 this area experienced a surge in housing prices. Much of the demand driving the price increases was reportedly from buyers outside Texas who were either purchasing for retirement, a second home, or an income‐generating investment. Since 2008, this market has decreased markedly and foreclosed properties have come to dominate the market. One real estate agent reported that two foreclosed North Padre Island townhome units (not within TIRZ #2) that originally sold for $240,000 within the last two years sold within the last month for $133,500 and $160,000. Until the foreclosed properties are cleared from the market, they will continue to depress prices. The Corpus Christi Association of realtors provided CDS | Spillette with data from the Multiple Listing Service (MLS) for 2007 through year to date 2009 for North Padre Island (both TIRZ and non‐TIRZ areas). The data, as presented in the chart on the next page, show that the shares of overall sales activity generated by homes priced above $250,000 has receded substantially from 2007 and 2008 levels. This reflects the anecdotal evidence that many formerly higher‐priced residential units are now selling for much lower prices, often because of foreclosure. The median closing prices for the time period also indicate a significant shift in pricing for 2009, as shown in the table to the right. In the long run, however, the future will bring an eventual return to strong demand and increased prices and property values. Although Corpus Christi’s job base has experienced slow growth and household incomes are moderate, North Padre Island’s residential market should not be as constrained as other areas of the city. This is because North Padre Island will attract out‐of‐town buyers and renters who are relatively detached from the local economy but who desire coastal property and find the area’s home prices to be more affordable than other Gulf Coast beach locations. Median Home Sale Prices North Padre Island Year Median Closing Price Change 2007 $231,000 2008 $232,500 $1,500 2009 YTD $192,500 ‐$40,000 Source: Corpus Christi Association of Realtors Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 15 Commercial Multi‐Tenant Commercial Uses Reliable data for commercial properties on North Padre Island is limited. A commercial broker who is active on the Island provided CDS | Spillette with some information however. A survey conducted in 2006 indicated approximately 86,000 square feet of leaseable (not owner/user) space in inventory at that time, with two properties totaling 24,732 square foot under construction. Of the built space, approximately 90 percent was occupied at that time. Rents ranged from $0.95 per month net of utilities to $1.65 per month, triple net. New multi‐tenant properties since 2006 include: • Marina Plaza, 4,732 square feet, currently 75% vacant • An addition to Padre Professional Plaza, though it is unclear whether the entire planned 20,000 square feet was actually completed; the addition is mostly occupied by a church, though some vacancy also remains • Loma Alta Plaza, 23,000 square feet, vacancy data not available • Padre Station, 7,901 square feet, 59% vacant • A small retail center at 15117 – 15121 South Padre Island Drive New single‐tenant developments include a CVS drugstore and Ace Hardware. Trends in Home Sale Prices North Padre Island Source: Corpus Christi Association of Realtors 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Share of Total Closings 2007 2008 2009 YTD Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 16 Current occupancy rates and rents are uncertain but are reported lower than in 2006. The prime locations are near the intersection of South Padre Island Drive and SH 361, especially on the west side (the “going home” side). Traffic counts are reportedly approaching 28,000 – 30,000 vehicles per day. Traffic counts and local market area population are relatively higher on the mainland portion of the south side of Corpus Christi, putting North Padre Island at a locational disadvantage when competing for tenants. Typical commercial tenants on North Padre Island were professional offices for businesses related to real estate. The economic slowdown and damaged residential real estate market has resulted in those firms having to shrink both employees and their occupied space. When the ensuing vacancies are being filled, it is with other types of retail businesses such as restaurants that can draw from vacationers. Significant neighborhood retail uses such as grocery stores are not yet on the island due to insufficient full time resident population. Tourism and Hospitality Corpus Christi receives approximately 7 million visitors per year. According to research by the Office of the Governor, over three quarters of “person‐days” (one visitor spending one day in the area) to the metropolitan area comes from within Texas. Together visitors from the San Antonio and Austin areas accounted for 42 percent of total person‐days in the region. The Convention and Visitors Bureau (CVB) reports marketing of Corpus Christi in the Houston region began just last year. Leisure travelers are estimated to constitute 73 percent of person‐days in the Corpus Christi region. Apart from visiting family and friends, major attractions for leisure travelers include the U.S.S. Lexington and Texas State Aquarium. Fishing, beaches, and nature tourism also have a major role in visitor activities. The CVB has is trying to expand its efforts regarding nature tourism, and touts that the San Diego Audubon Society has named Corpus Christi the “birdiest city in America” for the sixth year in a row. Business travel, including meetings and conventions, makes up the balance of travel demand. North Padre Island attracts tourists for its beaches and fishing. To accommodate these visitors, there is a large stock of vacation rental housing. North Padre Island offers five hotel properties: • Best Western on the Island • Hampton Inn • Comfort Suites • Hawthorn Suites • Holiday Inn SunSpree Resort Hotel All of these properties are located within TIRZ #2. The Holiday Inn Express, mentioned earlier, would also be in the TIRZ if it is built. Among the improvements currently proposed to be funded by TIRZ #2 are amenities for the public parklands along Packery Channel. Because these amenities will likely increase visitation to these parks, their implementation should have a beneficial impact on demand for certain types of commercial uses, especially convenience retail and casual dining. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 17 PROPERTY ACCOUNT AND TIRZ VALUE ANALYSIS CDS | Spillette extensively analyzed the TIRZ #2 property account data provided by the Nueces County Appraisal District (Nueces CAD). Accounts were classified based on use (largely determined by the State of Texas codes used by appraisers) and by location – beachfront, other waterfront, and inland sites. Residential properties on Lake Padre were noted separately as well, due to their access to Packery Channel. Historical Value Trends Nueces CAD also provided historical taxable values for the TIRZ #2 accounts, going back to 2001 if available. Analysis of these values provided data on taxable value growth trends presented in the table on the following page. The table gives the compound annual growth rates for three time intervals for all property use classes and locations for which data was available. These growth rates were often very high. Among the key observations are: • Condominium accounts experienced rapid value increases through 2008. Beachfront and Lake Padre condo accounts experienced greater increases, on a percentage basis, than inland condos. • Improved commercial properties showed wildly rapid value escalation from 2005 to 2008. • Various classes of vacant land lost value from 2008 to 2009, a significant change in trend. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 18 Historical TIRZ #2 Taxable Assessed Value Compound Annual Growth Trends Property Use Classification 2001‐2008 Beachfront Lake Padre Interior Waterfront Inland Waterfront Commercial Improved condo 32.5% 35.0% 20.6% 11.3% Improved single family 43.1% 28.0% Improved multifamily Duplex and triplex Improved commercial 12.4% 34.9% Vacant real property inventory Vacant commercial 32.0% Vacant multifamily Vacant unplatted condos ‐ single family land Vacant commercial lots 40.1% Vacant residentially platted lots‐tracts 84.9% Property Use Classification 2005‐2008 Beachfront Lake Padre Interior Waterfront Inland Waterfront Commercial Improved condo 24.4% 31.8% 23.1% 22.7% Improved single family 130.9% 18.4% Improved multifamily Duplex and triplex Improved commercial 53.5% 71.6% Vacant real property inventory 16.8% Vacant commercial 83.4% Vacant multifamily 16.5% Vacant unplatted condos ‐ single family land 65.4% 273.2% Vacant commercial lots 38.0% 17.0% 77.1% Vacant residentially platted lots‐tracts 31.5% 48.5% Property Use Classification 2008‐2009 Beachfront Lake Padre Interior Waterfront Inland Waterfront Commercial Improved condo 49.3% 18.7% 33.2% 20.4% Improved single family 239.5% 75.3% Improved multifamily 137.6% Duplex and triplex 19.9% Improved commercial ‐52.4% 33.8% 26.0% Vacant real property inventory 7.9% ‐2.5% Vacant commercial 27.3% Vacant multifamily 80.7% 150.0% Vacant unplatted condos ‐ single family land 0.4% ‐49.5% Vacant commercial lots ‐16.6% ‐6.9% ‐3.7% Vacant residentially platted lots‐tracts 16.1% 10.9% Source: Nueces County Appraisal District and CDS | Spillette Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 19 TIRZ Value Estimation and Projection The tables on the following pages present the analysis and projections that lead to the projection of future assessed values for TIRZ #2 and TIRZ revenues. The first table breaks down the 2009 certified taxable assessed values by property class and location as of September 2009 for the City of Corpus Christi. It also breaks down the uncertified accounts in the same manner. Different levels of taxable value loss are assumed for different classes of properties; generally, those classes which experienced more rapid increases in value up through 2008 are anticipated to suffer greater value reductions as a result of owner protest. Applying these value loss assumptions leads to an estimated certified value of the TIRZ for 2009 of $ 380,825,433. CDS | Spillette used the same methodology for each participating jurisdiction; tables for these other jurisdictions were not included in this report. The second table provides CDS | Spillette’s projections for value appreciation and average annual new development value by property class. These projections were based on the historical property accounts analysis and market research findings. CDS | Spillette projects that value losses will occur in the near term, 2010‐2011, due to falling prices and rents. By 2012‐2015, values will begin to increase slowly and more new development will occur. From 2016 on, it is projected that value increases of up to 15% annually will be achievable for several property classes and new development will average more than $25 million per year. In general, properties with beach frontage or interior waterfront (especially Lake Padre) are projected to appreciate the fastest. The same value increase and new development factors were used for each participating jurisdiction. It should be noted that Tortuga Dunes is not included in the new development amounts in the table. Tortuga Dunes has provided a schedule of new development value that is included in the actual TIRZ value projections. Also, these projections represent incremental development on a property by property basis; they do not assume a large scale self‐contained resort is developed on one of the large tracts within the TIRZ. Such a resort could add several $100s of millions in assessed value above the increases projected by CDS | Spillette. Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 20 Estimation of Current TIRZ Value by Property Class Property Class Property Location 2009 Certified Taxable Value Sept. 2009 2009 Values Under Protest Projected 2009 Final Certified Value Preliminary Value Projected Protest Loss Improved condo Beachfront $ 73,783,554 $ 1,835,883 ‐30% $ 75,068,672 Lake Padre 29,822,200 1,824,218 ‐30% 31,099,153 Interior waterfront 20,090,193 ‐ 20,090,193 Inland 58,713,493 17,053,593 ‐30% 70,651,008 Improved single family Interior waterfront $ 434,849 $ ‐ $ 434,849 Inland 1,293,317 173,367 ‐30% 1,414,674 Improved multifamily Interior waterfront $ 7,912,520 $ ‐ $ 7,912,520 Duplex and triplex Inland $ 351,685 $ ‐ $ 351,685 Improved commercial Beachfront $ 5,989,259 $ ‐ $ ,989,259 Other waterfront 3,229,447 ‐ 3,229,447 Inland 50,495,181 1,068,677 ‐30% 51,243,255 Improved real property inventory Lake Padre $ 153,409 $ ‐ $ 153,409 Unimproved real property inventory Interior waterfront $ 517,941 $ 640,275 ‐30% $ 966,134 Inland 386,218 568,231 ‐30% 783,980 Unimproved commercial land Inland $ 1,383,601 $ 273,000 ‐30% $ 1,574,701 Unimproved multifamily land Interior waterfront $ 1,021,500 $ ‐ $ 1,021,500 Inland 2,577 $ ‐ $ 2,577 Unimproved residential unplatted land Interior waterfront $ 164,504 $ ‐ $ 164,504 Inland 24,642 ‐ 24,642 Unimproved commercial lots Beachfront $ 24,597,726 $ ‐ $ 24,597,726 Interior waterfront 6,320,828 ‐ 6,320,828 Inland 45,775,050 240,626 ‐30% 45,943,488 Vacant residentially platted lots‐tracts Interior waterfront $ 15,349,519 $ 1,144,411 ‐30% $ 16,150,607 Inland 9,020,370 9,451,791 ‐30% 15,636,624 TOTAL $ 356,833,583 $ 34,274,072 $ 380,825,433 Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 21 Projected Increases in TIRZ Values by Property Class Property Class Property Location 2010‐2011 2012‐2015 2016‐2022 Annual Growth Rate Annual New Development1 Annual Growth Rate Annual New Development1 Annual Growth Rate Annual New Development1 Improved condo Beachfront ‐20% 5% 15% $ 3,375,000 Lake Padre ‐20% 5% $ 2,700,000 15% $ 3,600,000 Interior waterfront ‐25% 2% 10% $ 1,800,000 Inland ‐30% 2% 5% $ 2,700,000 Improved single family Interior waterfront ‐20% $ 200,000 2% $ 750,000 10% Inland ‐30% $ 360,000 0% 5% Improved multifamily Interior waterfront ‐10% 2% 10% Duplex and triplex Inland ‐30% 0% 5% Improved commercial Beachfront 0% 10% 15% $ 12,000,000 Other waterfront 0% 5% 12% $ 1,000,000 Inland ‐10% 5% $ 1,000,000 10% $ 1,000,000 Improved real property inventory Lake Padre 0% 5% 10% Unimproved real property Interior waterfront 0% 5% 10% inventory Inland ‐10% 2% 5% Unimproved commercial land Inland 0% 2% 5% Unimproved multifamily land Interior waterfront 0% 5% 10% Inland 0% 2% 5% Unimproved residential Interior waterfront 0% 2% 10% unplatted land Inland 0% 0% 5% Unimproved commercial lots Beachfront 0% 10% 15% Interior waterfront 0% 5% 15% Inland ‐10% 2% 10% Vacant residentially platted lots‐tracts Interior waterfront 0% 2% 10% Inland ‐10% 0% 5% TOTAL $ 560,000 $ 4,450,000 $ 25,475,000 1 Does not include Tortuga Dunes. Source: CDS | Spillette Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 22 The TIRZ value increase projections are then applied to the projected 2009 certified assessed value for TIRZ #2 for each property class. The Tortuga Dunes projected value additions (see table at right) are then introduced; the negative increment in 2010 is due to dedication of existing taxable property for public use, taking its taxable value to zero. The result of these calculations is a projected taxable value and value increment for the TIRZ, provided in the table on the next page. The assessed value increments for each jurisdiction are based on their respective base year taxable values as shown in the table below. Tortuga Dunes Value Schedule Tax Year Projected Assessed Value Incremental Value Added 2009 $18,640,008 2010 $17,720,205 $(919,803) 2011 $51,224,715 $33,504,510 2012 $66,946,125 $15,721,410 2013 $77,890,140 $10,944,015 2014 $83,900,000 $6,009,860 Source: Forestar Participating Jurisdiction Base Year Values Jurisdiction Base Year Taxable Value City of Corpus Christi $81,732,341 Nueces County $81,581,144 Nueces County Hospital District $81,732,341 Del Mar Junior College $82,513,867 Farm to Market Road District $82,708,597 Sources: City of Corpus Christi and Nueces County Appraisal District Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 23 Project TIRZ #2 Assessed Value by Participating Jurisdiction PROJECTED ASSESSED VALUE Tax Year City of Corpus Christi Nueces County Nueces County Hospital District Del Mar Jr. College Farm to Market Road 2009 380,825,433 377,027,804 377,027,804 382,757,294 376,776,909 2010 320,245,351 317,347,217 317,347,217 321,720,450 317,163,481 2011 307,194,087 304,974,332 304,974,332 308,324,444 304,840,076 2012 338,655,659 336,353,086 336,353,086 339,828,313 336,214,560 2013 366,192,055 363,803,032 363,803,032 367,408,871 363,660,078 2014 389,702,663 387,223,386 387,223,386 390,965,597 387,075,840 2015 411,435,230 408,861,715 408,861,715 412,746,329 408,709,405 2016 486,191,313 483,312,318 483,312,318 487,658,942 483,142,951 2017 570,745,210 567,519,915 567,519,915 572,390,395 567,331,227 2018 666,451,157 662,832,970 662,832,970 668,297,914 662,622,374 2019 774,856,231 770,791,945 770,791,945 776,931,996 770,556,480 2020 897,728,294 893,157,125 893,157,125 900,064,425 892,893,404 2021 1,037,088,042 1,031,940,526 1,031,940,526 1,039,720,393 1,031,644,672 2022 1,195,245,758 1,189,442,482 1,189,442,482 1,198,215,334 1,189,110,054 ASSESSED VALUE INCREMENT Tax Year City of Corpus Christi Nueces County Nueces County Hospital District Del Mar Jr. College Farm to Market Road 2009 298,311,566 295,295,463 295,295,463 300,048,697 295,195,765 2010 237,731,484 235,614,876 235,614,876 239,011,853 235,582,337 2011 224,680,220 223,241,991 223,241,991 225,615,847 223,258,932 2012 256,141,792 254,620,745 254,620,745 257,119,716 254,633,416 2013 283,678,188 282,070,691 282,070,691 284,700,274 282,078,934 2014 307,188,796 305,491,045 305,491,045 308,257,000 305,494,696 2015 328,921,363 327,129,374 327,129,374 330,037,732 327,128,261 2016 403,677,446 401,579,977 401,579,977 404,950,345 401,561,807 2017 488,231,343 485,787,574 485,787,574 489,681,798 485,750,083 2018 583,937,290 581,100,629 581,100,629 585,589,317 581,041,230 2019 692,342,364 689,059,604 689,059,604 694,223,399 688,975,336 2020 815,214,427 811,424,784 811,424,784 817,355,828 811,312,260 2021 954,574,175 950,208,185 950,208,185 957,011,796 950,063,528 2022 1,112,731,891 1,107,710,141 1,107,710,141 1,115,506,737 1,107,528,910 Source: CDS | Spillette Economic Study Update – Tax Increment Reinvestment Zone #2 Corpus Christi, Texas CDS | Spillette 24 CDS | Spillette 1250 Wood Branch Park Drive, Suite 100 Houston, TX 77079 281.582.0847 (Phone) 713.465.6975 (Fax) www.cdsmr.com DATE:July 8, 2019 TO:Peter Zanoni, City Manager FROM:Jermel Stevenson, Director of Parks and Recreation Department JermelS@cctexas.com (361) 826-3464 CAPTION: Ordinance authorizing an agreement with Nueces County Victims’ Memorial Garden for donation and acceptance of Memorial Garden to be placed at Cole Park. PURPOSE: To approve an agreement between with the City of Corpus Christi and the Nueces County Crime Victims’ Memorial Garden for the donation, acceptance and maintenance of the Memorial Garden at Cole Park. BACKGROUND AND FINDINGS: The Nueces County Victims’ Memorial Garden nonprofit corporation contacted the Parks and Recreation Department about available space at Cole Park to install a memorial garden in memory of Nueces County crime victims. The Garden will be approximately 50’ by 50’ and include walking paths, granite monuments, benches and a flower garden. The Nueces County Crime Victims’ Memorial Garden will be solely and exclusively responsible for all costs related to procurement, design, delivery, and installation of the Garden, including any additional Garden features such as irrigation, lighting, electricity, walkways, or benches. The organization will use water from irrigation system. They will also be responsible for repairing and maintaining the Garden and all additional Garden features in good condition and repair, at their sole cost and expense. A plan for continued ongoing maintenance of the Garden is attached in the agreement. The Donor plans to install and donate the Garden to the City no later than 9 months after the final signature of the agreement. ALTERNATIVES: Do not approve the agreement and deny the acceptance of the donation. Nueces County Crime Victims’ Memorial Garden Donation Agreement for Cole Park AGENDA MEMORANDUM Future Item for the City Council Meeting of July 16, 2019 Action Item for the City Council Meeting of July 23, 2019 OTHER CONSIDERATIONS: N/A CONFORMITY TO CITY POLICY: City Council must approve the agreement and acceptance of the donation. EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: □Operating □ Revenue □ Capital X Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments:None RECOMMENDATION: Staff recommends approval of this agreement LIST OF SUPPORTING DOCUMENTS: Agreement and Exhibits with Nueces County Crime Victims’ Memorial Association Ordinance 1 Ordinance authorizing an agreement with Nueces County Victims’ Memorial Garden for donation and acceptance of Memorial Garden to be placed at Cole Park. Be it Ordained by the City Council of the City of Corpus Christi, Texas, that: Section 1. The City Manager or designee is authorized to execute an agreement with Nueces County Victims’ Memorial Garden for donation and acceptance of Memorial Garden to be placed at Cole Park. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor 1 AGREEMENT BETWEEN CITY OF CORPUS CHRISTI AND NUECES COUNTY VICTIMS’ MEMORIAL GARDEN FOR DONATION AND ACCEPTANCE OF MEMORIAL GARDEN TO BE PLACED AT COLE PARK THIS AGREEMENT (“Agreement”), is made this ____ day of ______, 2019, by and between the City of Corpus Christi (“the City”), and Nueces County Victims’ Memorial Garden (“Donor”), a Texas nonprofit corporation, for the purpose of establishing a contractual relationship under which Donor will procure and donate, deliver, install, repair and maintain, and the City will accept, a garden in memory of Nueces County crime victims, to be installed on City property at Cole Park, Corpus Christi, Texas, referred to hereinafter as the “Garden”. The parties agree as follows: TERMS 1.Donation of Garden. Donor agrees to install and donate the Garden to the City, and the City agrees to accept the Garden for benefit of the public, according to the terms of this Agreement. The Garden shall be officially named the “Nueces County Victims’ Memorial Garden”. 2.Specifications of Garden. The Garden shall include the following elements: walking path, granite monuments, benches and flower garden, as shown and represented in the drawings and photos included as Exhibit 1, attached to this agreement and herein incorporated. The Donor may include lighting and may make adjustments to the plans with prior written review and approval of the Director of Parks and Recreation. The Donor may install a plaque recognizing the purpose of the Garden. The actual size, design, and wording of the explanatory plaque shall be subject to the final approval of the City Director of Parks and Recreation. 3.Donor’s Responsibilities. Donor plans to install and donate the Garden to the City no later than 9 months after the final signature of this Agreement. The Director of Parks and Recreation is authorized to approve extensions to these timelines. Donor shall coordinate all work in advance with the City Director of Parks and Recreation. Donor shall be solely and exclusively responsible for all costs related to procurement, design, delivery, and installation of the Garden, including but not limited to any additional Garden features such as irrigation, lighting, walkways, or benches. Donor acknowledges that Donor’s ongoing maintenance at the Garden is necessary to keep in good condition. Donor shall be responsible for repairing and maintaining the Garden and all additional Garden features in good condition and repair, at sole cost and expense of Donor. This provision shall survive termination or expiration of this Agreement. Donor has provided a plan for Donor’s continued ongoing maintenance of the Garden which plan is attached as Exhibit 2. 2 Donor shall ensure that all work performed on the City property complies with all applicable City, State, and Federal codes, statutes, ordinances and regulations including ADA regulations. Donor shall obtain any required permits prior to initiating work at the Garden. 4.City’s Responsibilities. The City shall accept delivery, receipt and ownership for the Garden for benefit of the public at a mutually acceptable time and place. The City Director of Parks and Recreation or Director of Engineering Services or their designees shall inspect the Garden prior to acceptance and notify Donor or Donor’s contractor of any deficiencies prior to City acceptance. 5.Ongoing maintenance and repair of the Garden. Donor agrees to continue to be responsible for the ongoing maintenance and repair of the Garden. Donor agrees to maintain the Garden in accordance with Exhibit 2 and keep the Garden in good repair. 6.Project Site. Donor shall arrange for the installation of the Garden and associated features at the approximately 50’ x 50’ area located in Cole Park as depicted in the attached Exhibit 3. Should Engineering, Parks, or Utility staff determine that this location is not suitable for the installation due to engineering structural analysis or impact to City utility infrastructure, then the Director of Parks and Recreation is authorized to work with Donor to identify another more suitable location within Cole Park for placement of the Garden. 7.Risk of Loss or Damage. Donor shall be solely responsible and assume all risk of loss or damage to the Garden including any additional Garden improvements. City shall have no obligation to repair or replace any damage to the Garden or to any improvements at the Garden. Donor shall notify the City Director of Parks and Recreation of any damage or destruction to the Garden and identify plan for repairs. City may remove any Garden components not properly maintained in safe condition after notice to Donor and reasonable opportunity for Donor to repair. 8.Installation of Garden. Donor shall review finals plans for the Garden with the City Director of Parks and Recreation in advance of work at the Garden. Donor shall require that any contractor hired by Donor to install the Garden presents and reviews any construction plans with the Engineering and Parks and Recreation Departments for their prior approval. Donor must include, in all construction contracts entered into for the installation of the Garden and any additional components described herein, a provision requiring the Donor’s contractor, to indemnify, hold harmless, defend and insure City, including its officers, agents, and employees, against the risk of legal liability for death, injury or damage to persons or property, direct or consequential, arising or alleged to arise out of, or in connection with, the performance of any or all of the work, whether the claims and demands made are just or unjust, unless same are caused by the gross negligence or willful act of City, its officers, agents, or employees. Donor shall require Contractor to obtain the insurance described in the attached Exhibit 4 and applicable permits prior to beginning work on City property. Donor shall require any volunteers working at the Garden to complete and return the attached Volunteer Waiver Form attached Exhibit 5. 3 9. Relocation of Garden. In the event City plans necessitate the relocation of the Garden, the City shall contact the Donor to discuss alternate locations for Donor to relocate the Garden. 10.Relationship of Parties. No agent, employee, representative or subcontractor of Donor shall be deemed to be the employee, agent, representative or subcontractor of the City. None of the benefits provided by the City to its employees, including, but not limited to, compensation, insurance and unemployment insurance, are available from the City to Donor or its employees, agents, representatives or subcontractors or volunteers. Donor will be solely and entirely responsible for its acts and for the acts of Donor’s agents, employees, representatives and subcontractors during the performance of this Agreement. Donor agrees to coordinate any special events at the Garden in advance with the City Director of Parks and Recreation. 11.Indemnification/Hold Harmless. Donor shall defend, indemnify and hold the City, its officers and employees harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement. The provisions of this section shall survive the expiration or termination of this Agreement. 12.Entire Agreement. The written provisions and terms of this Agreement, together with all documents attached hereto, shall supersede all prior verbal statements of any officer or representative of and such statements shall not be effective or construed as entering into or forming a part of, or altering in any manner whatsoever, this Agreement. 13.Modification. No waiver, alteration or modification of any of provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of City and Donor. 14.Assignment. Any assignment of this Agreement by Donor without the written consent of the City Director of Parks and Recreation shall be void. 15.Written Notice. All communications regarding this Agreement shall be sent to the parties at the addresses listed below. For the City: To City of Corpus Christi, Attn: Director of Parks and Recreation, P. O. Box 9277, Corpus Christi, Texas, 78469. Any written notice hereunder shall become effective as of the date of mailing by registered or certified mail and shall be deemed sufficiently given if sent to the addressee at the address stated in this Agreement or such other address as may be hereinafter specified in writing. 16.Non-Waiver of Breach. The failure of the City to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein conferred in one or more instances shall not be construed to be a waiver or relinquishment of said covenants, agreements or options and the same shall be and remain in full force and effect. 4 17.Effective Date; Resolution of Disputes, Governing Law. This Agreement takes effect on date of last signature. Should any dispute, misunderstanding or conflict arise as to the terms and conditions contained in this Agreement, the matter shall be referred to the City Manager, whose decision shall be final. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. AGREED TO BY THE PARTIES BY SIGNATURES BELOW: CITY OF CORPUS CHRISTI By: ___________________________ Name: ________________________ Title: _________________________ Date: _________________________ Nueces County Victims’ Memorial Garden BY: ________________________ NAME: Fallon Wood TITLE: Founder_____________________ DATE: _____________________ 6401 S. Padre Island Dr., Suite #108 Corpus Christi, TX 78412 5 EXHIBIT 1 6 7 EXHIBIT 2 Quarterly Biannually Seasonally As needed Raking of Cinder Trail X X Care of flower beds X Monument cleaning X X Bench cleaning X X Changing of flowering plants X Replenishment of Cinder Trail X DONOR’S PLAN FOR MAINTENANCE OF THE GARDEN 8 EXHIBIT 3 9 341 ft 10 EXHIBIT 4 INSURANCE REQUIREMENTS I.CONTRACTOR’S LIABILITY INSURANCE A.Contractor must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. B.Contractor must furnish to the City’s Risk Manager and Director of Parks and Recreation Department one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability and Auto Liability policies, and a waiver of subrogation is required on all applicable policies. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-day advance written notice of cancellation, non-renewal, material change or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1.Commercial Broad Form 2.Premises – Operations 3.Products/ Completed Operations 4.Contractual Liability 5.Independent Contractors 6.Personal Injury- Advertising Injury $500,000 Per Occurrence AUTO LIABILITY (including) 1. Owned 2. Hired and Non-Owned 3. Rented/Leased $500,000 Combined Single Limit WORKERS’S COMPENSATION (All States Endorsement if Company is not domiciled in Texas) Employer’s Liability Statutory and complies with Part II of this Exhibit. $500,000/$500,000/$500,000 11 INSTALLATION FLOATER Coverage shall be in the amount of the appraised value of Artwork. Coverage shall cover transportation of Artwork From point of origin thru installation and acceptance of City of Corpus Christi, Parks and Recreation Director. C.In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II.ADDITIONAL REQUIREMENTS A.Applicable for paid employees, Contractor must obtain workers’ compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers’ compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers’ Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. B.Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor'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. C.Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D.Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; 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; 12 Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non-renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non-renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor'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. F. In addition to any other remedies the City may have upon Contractor'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 Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G.Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor’s performance of the work covered under this contract. H. It is agreed that Contractor'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. I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 13 EXHIBIT 5 VOLUNTEER RELEASE OF LIABILITY AND HOLD HARMLESS AGREEMENT By signing this document, you are waiving any protection under Section 39.14 and Section 39.323 of the City of Corpus Christi Texas Code of Ordinance and any other similar ordinances. By signing this document, I agree to waive any rights to sue the City of Corpus Christi, its officers, officials, employees, representative, and agents (collectively, the "City"), for any damages or claims arising out of volunteer participation in the Cole Park garden project. I am aware that participating in the volunteer program may involve dangers and risks of serious injury and/or death and/or property damage. I freely accept and fully assume all such danger and risks. In consideration of being allowed to participate in the volunteer program I further agree as follows:· 1.To waive any and all claims I may have against the City arising out of volunteer participation: 2.To release the City from any and all liability from any l oss,damage,injury or expense that I may suffer or that my next of kin may suffer as a result of my participation in the volunteer programs due to any cause whatsoever,including any negligence of the City or otherwise; 3.To hold harmless and indemnify the City from any and all liability for any property damage or personal injury to any third-party, resulting from my participation in the volunteer program; 4.This release of Liability and Hold Harmless Agreement shall be effective and binding on my heirs,next of kin,executors,administrators,and assigns in the event of participant's death. I have read and understand this Release of Liability and Hold Harmless Agreement prior to signing it and am aware that by signing this Release of Liability and Hold Harmless Agreement I am waiving certain legal rights which I or my heirs,executors,administrators and assign may have against the City. If volunteer is under 18 years of age,the Parent or Guardian must sign below along with the volunteer.As the Parent or Guardian of a volunteer I agree to execute this Release of Liability and Hold Harmless Agreement on behalf of volunteer.I acknowledge the risks and dangers associated with the volunteer program and I voluntarily accept and assume liability and the possibility of injury,damage,death,or loss resulting there on behalf of the Volunteer. I waive any and all claims and agree to release,hold harmless,and indemnify the City of Corpus Christi,and its officer,officials, employees,representatives,and agents on behalf of the volunteer. ______________________________________ __________________ Volunteer Signature Date Project No.: E17056 1 EP/GH Legistar No.: 19-0597 Rev. 7 – 7/15/19 AGENDA MEMORANDUM Action Item for the City Council Meeting of July 23, 2019 DATE:July 8, 2019 TO:Peter Zanoni, City Manager THRU:Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3082 FROM:Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Jermel Stevenson, Director of Parks and Recreation jermels@cctexas.com (361) 826-3042 CAPTION: Motion awarding a contract to Mako Contracting, LLC in the amount of $603,463.91 for construction associated with Tennis Center Repairs and Upgrades including removing and replacing three (3) existing tennis courts at the HEB Tennis Center funded by the 2012 Park Bond Program. PURPOSE: The purpose of this agenda item is to obtain authority to execute a construction contract to remove and replace three (3) existing tennis courts at HEB Tennis Center. BACKGROUND AND FINDINGS: The center has a total of twenty-five (25) tennis courts, three of which are under a covered shade structure. The three covered tennis courts were constructed from Hot Mix Asphalt Concrete (HMAC) in 2001 and are experiencing severe surface deterioration and deformation due to typical soil shrinkage and expansion with high clay soils, ground water and underground utilities. Previous projects provided similar HMAC court replacements with new post-tensioned Portland Cement Concrete (PCC) courts, new nets/poles, fencing and miscellaneous improvements. The post-tensioning reduces the concrete thickness while increasing the compressive strength to control cracking and court deformation. Construction Contract HEB Tennis Center Improvements (Bond 2012 Proposition 4) Project No.: E17056 2 EP/GH Legistar No.: 19-0597 Rev. 7 – 7/15/19 This project replaces the last three existing HMAC tennis court surfaces with the new post- tensioned PCC courts. The project includes new playing surface treatments, markings, nets/poles, fencing and miscellaneous electrical improvements. The project was developed with a Base Bid plus one Additive Alternate described below: Base Bid – Provides for removal and replacement of one existing HMAC with new post- tensioned PCC slab with the associated playing surface treatment, markings, tennis nets/poles, fencing, and miscellaneous electrical improvements. Additive Alternative No. 1 – Provides for replacement of two additional courts with the associated playing surface treatments, markings, nets/poles, fencing, and miscellaneous electrical improvements. On April 10th, 2019 the City received proposals from four (4) bidders. The City was not able to award the contract before the expiration of the bid security. The low bidder was not willing to extend their bid. The bids are summarized below: BID SUMMARY CONTRACTOR BASE BID ADD. ALT. 1 TOTAL BID D&SS Construction, Inc.* PO Box 8313 Corpus Christi, TX $229,664.46 $328,862.75 $558,527.21 Mako Contracting, LLC 4833 Saratoga Blvd., Corpus Christi, TX $247,724.53 $355,739.38 $603,463.91 Gourley Contractors, LLC 4921 Ambassador Row Corpus Christi, TX 78416 $343,898.45 $392,934.84 $736,833.29 Journeyman Construction 5449 Bear Ln #436 Corpus Christi, TX 78405 $421,000.00 $351,000.00 $772,000.00 Engineer’s Opinion of Probable Cost $298,206.29 $465,812.84 $764,019.13 *Time on bid bond expired and lowest bidder could no longer honor their pricing. ALTERNATIVES: 1.Authorize execution of construction contract. (Recommended) 2.Do not authorize execution of construction contract. (Not Recommended) OTHER CONSIDERATIONS: N/A CONFORMITY TO CITY POLICY: Complies with statutory requirements for construction contract procurement. Conforms to FY 2019 Capital Improvement Planning (CIP) Budget. EMERGENCY / NON-EMERGENCY: Non-Emergency Project No.: E17056 3 EP/GH Legistar No.: 19-0597 Rev. 7 – 7/15/19 DEPARTMENTAL CLEARANCES: Parks & Recreation FINANCIAL IMPACT: □Operating □ Revenue X Capital □ Not applicable Fiscal Year 2018-2019 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Budget 757,699 757,699 Encumbered / Expended Amount 34,685 34,685 This item 603,463 603,463 Future Anticipated Expenditures This Project 119,551 119,551 BALANCE 0 0 Fund(s): Parks & Rec 2013 GO (Bond 2012) 3293 Funding Detail: Fund: Parks & Rec 2013 GO (Bond 2012) Fund 3293 Organization/Activity: E17056-01-3293-EXP Mission Element:141 Project # (CIP Only): E17056 Account:550910 RECOMMENDATION: City staff and Munoz Engineering recommend award of a construction contract to Mako Contracting, LLC. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Letter of Recommendation Bid Tab FUNDS AVAILABLE: Bond 2012, Proposition 4 …………………………………………………………………...……………………………..757,699$ TOTAL FUNDS AVAILABLE…………………………………………………………………………………………………..757,699 FUNDS REQUIRED: Construction Fees:…………………….…………………………………………………………………………………….663,810 Construction (Mako Contracting, LLC) THIS ITEM….……………………………………..603,464 Contingency (10%)……………...……………………………………………………………………………………………………………………….60,346 Construction Inspection and Testing Fees:………………………………….……………………………………………………29,298 Construction Inspection…………………………………………..……………………………………………23,233 Construction Phase - Materials Testing Services …...………………..……………………………………………………………………………….6,065 Design………………………………………………………………....……………………………..29,400 Original Contract (Munoz Enginnering) Design…………………………………………………………………………………………………….29,400 Reimbursements:…………………………………………………………………………………………………………...…………..35,191 Contract Administration (Engineering Svcs Admin/Finance/Capital Budget)……………………………………………………………………………….13,276 Engineering Services (Project Mgt/Constr Mgt)………………………………………………………………………………..19,914 Misc. (Printing, Advertising, etc.)………………………………………………………………………………………………………..2,000 TOTAL………………………………………………………………………………………………………………………………………757,699$ ESTIMATED PROJECT BUDGET BALANCE…………………………………………………………………………………………(0)$ E17056 HEB Tennis Center Improvements Bond 2012, Proposition 4 PROJECT BUDGET ESTIMATE Ryan Porter MUNOZ ENGINEERING, LLC Wednesday, April 10, 2019 TIME OF COMPLETION:180 CALENDAR DAYS ENGINEER'S ESTIMATE:765,019.13$ ITEM DESCRIPTION UNIT ESTIMATED QUANTITY UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT Part A - General A1 Mobilization (5% Max.)LS 1 27,000.00$ 27,000.00$ 12,000.00$ 12,000.00$ 11,051.76$ 11,051.76$ 10,000.00$ 10,000.00$ A2 Contractor Home Office and Profit (HOH)(%)LS 1 20,349.50$ 20,349.50$ 200.00$ 200.00$ 36,151.41$ 36,151.41$ 183,000.00$ 183,000.00$ A3 Bonds and Insurance LS 1 5,819.96$ 5,819.96$ 7,817.50$ 7,817.50$ 7,456.46$ 7,456.46$ 30,000.00$ 30,000.00$ A4 Construction Permits LS 1 2,800.00$ 2,800.00$ 3,068.00$ 3,068.00$ 2,205.00$ 2,205.00$ 4,000.00$ 4,000.00$ A5 Storm Water Pollution Prevention LS 1 2,930.00$ 2,930.00$ 2,189.00$ 2,189.00$ 14,211.40$ 14,211.40$ 5,000.00$ 5,000.00$ A6 Temporary Construction Fence and Barricade LS 1 2,500.00$ 2,500.00$ 4,720.00$ 4,720.00$ 7,622.10$ 7,622.10$ 5,000.00$ 5,000.00$ A7 Traffic Control (Signs, Barricades, Channelizing Devices, Etc.)LS 1 700.00$ 700.00$ 1,416.00$ 1,416.00$ 3,032.66$ 3,032.66$ 2,000.00$ 2,000.00$ A8 Ozone Action Day DY 2 -$ -$ 50.00$ 100.00$ 2,527.22$ 5,054.44$ 1,000.00$ 2,000.00$ SUBTOTAL PART A - GENERAL (Items A1 thru A8)62,099.46$ 31,510.50$ 86,785.23$ 241,000.00$ Part B - SITE WORK B1 Demo - Tennis Court (Court 1)SF 6660 3.72$ 24,773.00$ 3.91$ 26,040.60$ 6.17$ 41,092.20$ 1.50$ 10,000.00$ B2 Demo - Chain Link Fencing LF 175.5 60.43$ 10,606.00$ 42.28$ 7,420.14$ 10.56$ 1,853.28$ 5.70$ 1,000.00$ B3 Existing Electrical LS 1 792.00$ 792.00$ 2,649.00$ 2,649.00$ 1,334.38$ 1,334.38$ 2,000.00$ 2,000.00$ B4 Tennis Net and Ancillaries EA 1 1,850.00$ 1,850.00$ 1,652.00$ 1,652.00$ 3,895.07$ 3,875.07$ -$ -$ B5 Prop - Electrical Conduit, Receptacles, and Wiring LS 1 3,775.00$ 3,775.00$ 24,273.00$ 24,273.00$ 6,360.17$ 6,360.17$ 19,000.00$ 19,000.00$ B6 Prop - Concrete Post Tension Slab (Tennis Court)SF 6300 10.64$ 67,000.00$ 13.60$ 85,680.00$ 16.98$ 106,974.00$ 13.65$ 86,000.00$ B7 Prop - Concrete Enclosure SF 360 13.89$ 5,000.00$ 7.08$ 2,548.80$ 36.04$ 12,974.40$ 8.33$ 3,000.00$ B8 Prop - Concrete Footing LF 175.5 43.88$ 7,700.00$ 64.58$ 11,333.79$ 70.08$ 12,299.04$ 45.58$ 8,000.00$ B9 Prop - Chain Link Fence with Windscreen Material LF 175.5 48.83$ 8,569.00$ 58.91$ 10,338.70$ 130.26$ 22,860.63$ 51.28$ 9,000.00$ B10 Prop - Chain Link Fence EA 1 1,000.00$ 1,000.00$ 1,416.00$ 1,416.00$ 2,663.69$ 2,663.69$ 1,000.00$ 1,000.00$ B11 Prop - Tennis Court Striping (Court 1)EA 1 850.00$ 850.00$ 1,298.00$ 1,298.00$ 1,347.85$ 1,347.85$ 11,000.00$ 11,000.00$ B12 Prop - Tennis Court Surface (Court 1)EA 1 5,650.00$ 5,650.00$ 11,564.00$ 11,564.00$ 13,789.51$ 13,478.51$ -$ -$ B13 Base Bid Unanticipated Work Allowance LS 1 30,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ 30,000.00$ SUBTOTAL PART B - SITE WORK (Items B1 thru B13) 167,565.00$ 216,214.03$ 257,113.22$ 180,000.00$ Part C - ALTERNATE 1 GENERAL C1 Mobilization (5%)LS 1 25,400.00$ 25,400.00$ 14,000.00$ 14,000.00$ 1,529.91$ 1,529.91$ 10,000.00$ 10,000.00$ C2 Contractor Home Office Overhead and Profit (HOH) (%)LS 1 29,139.00$ 29,139.00$ 50.00$ 50.00$ 41,313.50$ 41,313.50$ 32,000.00$ 32,000.00$ C3 Bonds and Insurance LS 1 8,333.75$ 8,333.75$ 10,000.00$ 10,000.00$ 8,850.37$ 8,850.37$ 6,000.00$ 6,000.00$ C4 Construction Permits LS 1 4,500.00$ 4,500.00$ 4,720.00$ 4,720.00$ 2,835.00$ 2,835.00$ 4,000.00$ 4,000.00$ SUBTOTAL PART C - GENERAL (Items C1 thru C4)67,372.75$ 28,770.00$ 54,528.78$ 52,000.00$ CORPUS CHRISTI, TX 78416 CORPUS CHRISTI, TX 78405CORPUS CHRISTI, TX 78468CITY PROJECT NO.: E17056 4833 SARATOGA BLVD CORPUS CHRISTI, TX 78413 TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS HEB Tennis Center Improvements P.O. BOX 8313 5449 BEAR LN #436 GOURLEY CONTRACTORS, LLC.JOURNEYMAN CONSTRUCTION, INC. TABULATED BY: ENGINEER: BID DATE: D&SS CONSTRUCTION, INC.MAKO CONTRACTING, LLC. 4921 AMBASSADOR ROW BID TABULATION E17060 – JC Elliott Site Improvements Page 1 of 2 Ryan Porter MUNOZ ENGINEERING, LLC Wednesday, April 10, 2019 TIME OF COMPLETION:180 CALENDAR DAYS ENGINEER'S ESTIMATE:765,019.13$ TABULATION OF BIDS DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS HEB Tennis Center Improvements GOURLEY CONTRACTORS, LLC.JOURNEYMAN CONSTRUCTION, INC. TABULATED BY: ENGINEER: BID DATE: D&SS CONSTRUCTION, INC.MAKO CONTRACTING, LLC.Part D - ALTERNATE 1 SITE WORK D1 Demo - Tennis Court (Court 2 & 3)SF 12060 2.34$ 28,165.00$ 3.91$ 47,154.60$ 6.44$ 77,666.40$ 1.82$ 22,000.00$ D2 Demo - Chain Link Fence LF 220.5 58.16$ 12,825.00$ 42.28$ 9,322.74$ 7.66$ 1,689.03$ 4.54$ 1,000.00$ D3 Demo - Existing Electrical LS 1 1,436.00$ 1,436.00$ 1,321.60$ 1,321.60$ 1,617.78$ 1,617.78$ 1,000.00$ 1,000.00$ D4 Tennis Net and Ancillaries EA 2 2,000.00$ 4,000.00$ 2,655.00$ 5,310.00$ 2,027.85$ 4,055.70$ -$ -$ D5 Prop - Electrical, Receptacles, and wiring LS 1 7,662.00$ 7,662.00$ 14,319.30$ 14,319.30$ 8,631.89$ 8,631.89$ 13,000.00$ 13,000.00$ D6 Prop - Concrete Post Tension Slab (Tennis Court)SF 12060 10.27$ 123,800.00$ 11.74$ 141,584.40$ 11.89$ 143,393.40$ 13.93$ 168,000.00$ D7 Prop - Concrete Footing LF 220.5 41.72$ 9,200.00$ 64.58$ 14,239.89$ 47.00$ 10,363.50$ 45.35$ 10,000.00$ D8 Prop - Chain Link Fence with Windscreen Material LF 220.5 47.18$ 10,402.00$ 58.91$ 12,989.65$ 88.91$ 19,604.65$ 49.89$ 11,000.00$ D9 Prop - Chain Link Fence EA 1 1,000.00$ 1,000.00$ 1,416.00$ 1,416.00$ 1,781.13$ 1,781.13$ 1,000.00$ 1,000.00$ D10 Prop - Tennis Court Striping (Court 2 & 3)EA 2 1,050.00$ 2,100.00$ 1,888.00$ 3,776.00$ 1,013.93$ 2,027.86$ 11,000.00$ 22,000.00$ D11 Prop - Tennis Court Surface (Court 2 & 3)EA 2 5,420.00$ 10,900.00$ 12,767.60$ 25,535.20$ 8,787.36$ 17,574.72$ -$ -$ D12 Alternate 1 Unanticipated Work Allowance LS 1 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ SUBTOTAL PART D - ALTERNATE 1 SITE WORK (Items D1 thru D12)261,490.00$ 326,969.38$ 338,406.06$ 299,000.00$ *TIME ON BID BOND EXPIRED AND LOWEST BIDDER COULD NO LONGER HONOR THEIR PRICING. 603,463.91$ 62,099.46$ 31,510.50$ Item B11 contains B4 and B12 costs, stated within Bid Docs. 52,000.00$ 772,000.00$ 299,000.00$ 67,372.75$ 180,000.00$ BID SUMMARY SUBTOTAL PART A - GENERAL (Items A1 thru A8) SUBTOTAL PART D - ALTERNATE 1 SITE WORK (Items D1 thru D12)261,490.00$ Item D10 contains D4 and D11 costs, stated within Bid Docs. TOTAL PROJECT BASE BID (PARTS A THRU D)558,527.21$ 326,969.38$ 167,565.00$ SUBTOTAL PART B - SITE WORK (Items B1 thru B13) 216,214.03$ 28,770.00$ SUBTOTAL PART C - GENERAL (Items C1 thru C4) 241,000.00$ 338,406.06$ 736,833.29$ 86,785.23$ 257,113.22$ 54,528.78$ BID TABULATION E17060 – JC Elliott Site Improvements Page 2 of 2 Council Presentation July 23, 2019 HEB Tennis Center Improvements Bond 2012, Proposition 4 1 2 Project Location 3 Project Vicinity 4 Project Scope Remove and replace the last 3 existing HMAC tennis court surfaces. The project includes: •New post-tensioned PCC court •New playing surface treatment with markings •New tennis nets & poles •Replace existing fencing •Miscellaneous electrical improvements 5 Project Schedule Projected Schedule reflects City Council award in July 2019 with anticipated construction completion in January 2020. 20 A M J J A S O N D J Bid Construction 2019 6 QUESTIONS? 7 Site Photos NW Corner of Court 1 NW Corner of Court 1 8 Site Photos Court Receptacles 37 181 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES HEB Tennis Court Improvements (Bond 2012, Proposition 4) LOCATION MAP NOT TO SCALE Project Number: E17056 Project Location MUNOZ ENGINEERING Practical Engineering Solutions 1608 S. BROWNLEE BLVD ■ CORPUS CHRISTI, TX 78404 ■ (O) 361-946-4848 ■ (F) 361-265-0562 ■ TBPE FIRM F-12240 munozengrg.com July 8th, 2019 City of Corpus Christi Department of Engineering Services PO Box 9277 Corpus Christi, Texas 78469-9277 Re: E17056 HEB TENNIS CENTER IMPROVEMENTS CORPUS CHRISTI, TEXAS AWARD RECOMMENDATION To Whom It May Concern: The bids for the referenced project were opened on Wednesday, April 10, 2019. At that time there were four (4) bids received and subsequently reviewed for accuracy and compliance with the bid documents. All the documentation was in order and that, in our opinion, all bidders offered qualified bids. Mako Contracting, LLC., out of Corpus Christi, Texas is the apparent second lowest bidder. Based on the information provided with the bid documents we are confident that Mako Contracting, LLC., is qualified to complete the work. We recommend that the City of Corpus Christi select Mako Contracting, LLC., out of Corpus Christi, Texas Base bid and Alternate 1 for a total construction cost of $603,463.91. The contractor will have 180 calendar days from the issuance of a notice to proceed to complete the project. Should you have any questions or require any additional information, please do not hesitate to contact us. Sincerely, MUNOZ ENGINEERING, LLC Ramiro Munoz lll, P.E., MLSE President DATE:July 23, 2019 TO:Peter Zanoni, City Manager FROM:Bill Mahaffey, Director of Gas Operations BillM@cctexas.com (361) 826-1801 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Motion authorizing the lease purchase of heavy equipment consisting of two mini excavators and three backhoes for excavations during installation of gas taps and service lines by Gas Operations from Doggett Heavy Machinery of Corpus Christi, Texas, for a total amount not to exceed $542,760.32 funded through the Gas Fund. PURPOSE: This item is to approve the lease purchase of five pieces of heavy equipment for the Gas Department. BACKGROUND AND FINDINGS: The Gas Department has a need to lease purchase two mini excavators and three backhoes to replace aging equipment that incur high maintenance cost with reoccurring breakdown. The mini excavators are used in construction to conduct small excavations for the installation of gas taps and service lines. The mini excavators have exceeded the service life of 8 years. One excavator is 11 years old, and the other is 9 years old. The backhoes are used in the construction and maintenance of gas main lines for conducting larger excavations. The backhoes have exceeded the service life of 8 years. Two of the backhoes are 15 years old, and one is 10 years old. This equipment is being purchased through the Buy Board cooperative. Contracts awarded through the Buy Board Cooperative have been competitively procured, and in compliance with Texas local and state procurement requirements. Lease Purchase of Heavy Equipment for Gas Operations AGENDA MEMORANDUM Action item for the City Council Meeting of July 23, 2019 ALTERNATIVES: N/A OTHER CONSIDERATIONS: Financing for the lease purchase of these five pieces of heavy equipment is based on a sixty-month term with an estimated interest rate of 4.20% for an annual estimated payment of $9,029.34. The total estimated cost over the five-year period, including principal of $487,890.00 and interest of $54,870.32 is $542,760.32. A not to exceed tolerance of $1,000.00 has been added to the interest amount to allow for the possible fluctuation of the interest rate. Total Lease Purchase Price:$487,890.00 Total estimated allowable interest for Lease:$ 54.870.32 Grand Total:$542,760.32 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: Gas Department FINANCIAL IMPACT: X Operating □ Revenue □Capital □ Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget $343,147.00 $524,668.31 $867,815.31 Encumbered / Expended Amount $162,091.64 $0.00 $162,091.64 This item $18,092.01 $524,668.31 $542,760.32 BALANCE $162,963.35 $0.00 $162,963.35 Funding Detail: Fund:4130 Gas Fund Organization/Activity:34130 Gas Construction Mission Element:022 Gas Distribution System Project # (CIP Only): N/A Account:530190 Lease Purchase Payment RECOMMENDATION: Staff recommends approval of the action as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet City of Corpus Christi Contracts & Procurement Buyer: Cynthia Perez ITEM DESCRIPTION QUANTITY UNIT EXTENDED TOTAL 1 17G Mini Excavator 2 $41,237.00 $82,474.00 2 2019 410L Backhoes 3 $135,138.66 $405,416.00 $487,890.00 Doggett Heavy MachineryCorpus Christi, Texas Price Sheet Lease Purchase of Heavy Equipment for Gas Department Contract - BuyBoard Contract # 515-16 DATE:July 23, 2019 TO:Peter Zanoni, City Manager FROM:Bill Mahaffey, Director of Gas Operations BillM@cctexas.com (361)-826-1801 Kim Baker, Director of Contracts and Procurement Kimb2@cctexas.com (361)-826-3169 CAPTION: Motion authorizing a two-year supply agreement for gas meters, that will be used for new services and replacement of models no longer supported, with Wilnat, Inc., dba Koons Gas Measurement of Tulsa, Oklahoma for the total amount not to exceed $974,035.00, with the first year funded through the Gas Fund. PURPOSE: This service agreement is to supply gas meters for the Gas Operations. BACKGROUND AND FINDINGS: The City has approximately, 61,000 metered gas connections with additional new service connections being added throughout the year. Each connection requires the installation of a meter to allow for the accurate measurement of gas usage. The Contracts and Procurement Department conducted a competitive RFB process to obtain bids for a new contract. The City received one responsive, responsible bid, and staff is recommending the award to Wilnat, Inc dba Koons Gas Measurement. Supply Agreement for Gas Meters AGENDA MEMORANDUM Action Item for the City Council Meeting of July 23, 2019 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: Gas Operations FINANCIAL IMPACT: X Operating □ Revenue □ Capital □Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget $363,000.00 $892,782.08 $1,255,782.08 Encumbered / Expended Amount $269,356.35 $0.00 $269,356.35 This item $81,252.92 $892,782.08 $974,035.00 BALANCE $12,390.73 $0.00 $12,390.73 Funding Detail: Fund:4130 Gas Organization/Activity:34000 Gas Administration Mission Element:022 Project # (CIP Only): N/A Account:520130 Maint & Repairs RECOMMENDATION: Staff recommends approval of the action as presented LIST OF SUPPORTING DOCUMENTS: Supply Agreement Bid Tabulation Item Description Unit Qty- 2 Years Unit Rate Total Price 1 AC-250 Diaphragm Meter, Make: Elster American Meter EA 11,000.00 78.95$ 868,450.00$ 2 AL-425 Diaphragm Meter, Make: Elster American Meter EA 300.00 249.95$ 74,985.00$ 3 AL-800 Diapgragm Meter, Make: Elster American Meter EA 30.00 1,020.00$ 30,600.00$ 974,035.00$ Bid Tabulation RFB 2159 - Gas Meters Gas Department Total City of Corpus Christi Contracts and Procurement Department BUYER : JAPAN SHAH Wilnat, Inc Tulsa, OK Page 1 of 2 ATTACHMENT A: SCOPE OF WORK 1.1 General Requirements/Background Information A. The Supplier shall provide Gas meters as outlined in this Scope of Work. The Supplier shall supply Elster American Meters. All the meters must be compatible with Aclara AMR/AMI- MTU’s with a direct fit to meter. B. The quantities are an estimated quantity. Orders will be placed as needed. 1.2 Gas Meter Specification A. The Gas meters shall comply with the following specifications: 1. American AC-250 Diaphragm Meter • Regular / Non- temperature compensated • Pointer/Circular index • Circular white/red dial register; Reading with 2ft and ½ proving hand, plastic or brass with tamper indication • 20LT connection sizes • 5 PSIG Maximum Allowable Operating Pressure (MAOP) • Standard index covers 2. American AL-425 Diaphragm Meter • Regular / Non-temperature compensated • Pointer/Circular index • 2-1/2(1/2ft proofing and 2ft dial) • 30 LT connection sizes • 25 PSIG Maximum Allowable Operating Pressure (MAOP) • Standard index covers • 8.25” center to center connections 3. American AL-800 Diaphragm Meter • Regular/ Non-temperature compensated • Pointer/Circular index • 15ft (5ft proofing hand and 10ft dial) • 45 LT connection sizes • 20 PSIG Maximum Allowable Operating Pressure (MAOP) • Standard index covers B. The Supplier shall affix equipment badge numbers on all gas meters. The City will provide numbering sequence. C. The Supplier shall provide manufacturer instructional training and/or material as required by City’s Gas Department. Page 2 of 2 D. The Supplier shall provide a Parts list, Installation and Cleaning Instruction drawings etc. as required by City’s Gas Department. 1.3 Order Placement and Delivery A. The Supplier shall deliver new meters as per specification outlined in this Scope of Work and meet all industry standards for all type of meter and accuracy. B. The City will place an order as needed. C. Once an order is placed, the acceptable lead time for delivery is within 2 months. The supplier shall inform to the City in advance, if the supplier cannot deliver the meters as per lead time. D. Deliveries shall be accepted Monday to Friday (excluding City Holidays) between the hours of 8:00 AM to 4:00 PM, Central Standard Time. E. Delivery F.O.B: Gas Department, 4225 S. Port Avenue, Corpus Christi, TX 78415 1.4 Contract Pricing A. The quantity is an estimate for two years. This estimate is based on calculation of the number of new houses being built, the number of meters junked, the meters exchanged, maintenance program on old meters and the meters that are rebuilt. B. The City will provide precise quantities when placing an order for delivery. C. The Unit Price includes for FOB destination, Freight included. 1.5 Invoicing The Supplier shall invoice after each delivery. The Supplier’s invoice shall contain Supply Agreement No, Delivery Address, Product type and quantity. 1.6 Supplier Quality Control and Superintendence The Supplier shall establish and maintain a complete Quality Control Program that is acceptable to the Contract Administrator to assure that the requirements of the Contract are provided as specified. The Supplier will also provide supervision of the work to ensure it complies with the contract requirements. Attachment B: Bid/Pricing Schedule Page 1 of 3 ATTACHMENT C: INSURANCE REQUIREMENTS I. CONTRACTOR’S LIABILITY INSURANCE A. Contractor must not commence work under this contract until all insurance required has been obtained and such insurance has been approved by the City. Contractor must not allow any subcontractor, to commence work until all similar insurance required of any subcontractor has been obtained. B. Contractor must furnish to the City’s Risk Manager and Contract Administrator one (1) copy of Certificates of Insurance with applicable policy endorsements showing the following minimum coverage by an insurance company(s) acceptable to the City’s Risk Manager. The City must be listed as an additional insured on the General liability policy by endorsement, and a waiver of subrogation endorsement is required on all applicable policies. Endorsements must be provided with Certificate of Insurance. Project name and/or number must be listed in Description Box of Certificate of Insurance. TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE 30-day advance written notice of cancellation, non-renewal, material change, or termination required on all certificates and policies. Bodily Injury and Property Damage Per occurrence - aggregate COMMERCIAL GENERAL LIABILITY including: 1. Commercial Broad Form 2. Premises – Operations 3. Products/ Completed Operations 4. Contractual Liability 5. Independent Contractors 6. Personal Injury- Advertising Injury $1,000,000 Per Occurrence $1,000,000 Aggregate C. In the event of accidents of any kind related to this contract, Contractor must furnish the Risk Manager with copies of all reports of any accidents within 10 days of the accident. II. ADDITIONAL REQUIREMENTS A. Applicable for paid employees, Contractor must obtain workers’ compensation coverage through a licensed insurance company. The coverage must be written on a policy and endorsements approved by the Texas Department of Insurance. The workers’ compensation coverage provided must be in statutory amounts according to the Texas Department of Insurance, Division of Workers’ Compensation. An All States Endorsement shall be required if Contractor is not domiciled in the State of Texas. B. Contractor shall obtain and maintain in full force and effect for the duration of this Contract, and any extension hereof, at Contractor's sole expense, insurance coverage Page 2 of 3 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. C. Contractor shall be required to submit renewal certificates of insurance throughout the term of this contract and any extensions within 10 days of the policy expiration dates. All notices under this Exhibit shall be given to City at the following address: City of Corpus Christi Attn: Risk Manager P.O. Box 9277 Corpus Christi, TX 78469-9277 D. Contractor agrees that, with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following required provisions: • List the City and its officers, officials, employees, and volunteers, as additional insureds by endorsement with regard to operations, completed operations, and activities of or on behalf of the named insured performed under contract with the City, with the exception of the workers' compensation policy; • 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; • Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City; and • Provide thirty (30) calendar days advance written notice directly to City of any, cancellation, non-renewal, material change or termination in coverage and not less than ten (10) calendar days advance written notice for nonpayment of premium. E. Within five (5) calendar days of a cancellation, non-renewal, material change or termination of coverage, Contractor shall provide a replacement Certificate of Insurance and applicable endorsements to City. City shall have the option to suspend Contractor'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. F. In addition to any other remedies the City may have upon Contractor'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 Contractor to stop work hereunder, and/or withhold any payment(s) which become due to Contractor hereunder until Contractor demonstrates compliance with the requirements hereof. G. Nothing herein contained shall be construed as limiting in any way the extent to which Contractor may be held responsible for payments of damages to persons or property resulting from Contractor's or its subcontractor’s performance of the work covered under this contract. H. It is agreed that Contractor'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. Page 3 of 3 I. It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this contract. 2019 Insurance Requirements Utilities Order and Delivery of Gas Meters (Off Site) 02/13/2019 sw Risk Management Page 1 of 1 ATTACHMENT D: WARRANTY REQUIREMENTS A. Meters may be tested and inspected in the City’s Gas Meter Shop. Meters that do not meet the specifications or have mechanical defects will be rejected and returned to the supplier at their expense. B. The Supplier shall warrant Gas meters against defects arising from faulty material, faulty workmanship for a period of 12 months or manufacturer warranty following the acceptance of the goods. C. The Supplier shall guarantee each meter for a period of 15 years from the date of shipment, excluding vandalism. D. All parts proving defective within the warranty/guarantee period shall be repair, replaced without any cost to the City of Corpus Christi and the Supplier must cover all shipping costs. DATE:July 23, 2019 TO:Peter Zanoni, City Manager FROM:Bill Mahaffey, Director of Gas Operations BillM@cctexas.com (361) 826-1801 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Motion authorizing the purchase of two replacement crew trucks from Silsbee Ford of Silsbee, Texas, for a total amount not to exceed $106,861.11 funded through the Gas Fund. PURPOSE: This item is to approve the purchase of two trucks for the Gas Department. BACKGROUND AND FINDINGS: The Gas Department has a requirement to purchase two crew trucks; a Ford F450 Crew Cab and a Ford F550 Extended Cab. These two crew trucks are replacement units for vehicles that are past their expected service life of seven years. One truck is 13 years old and the second is 18 years old. These units remain in service; however, are frequently out of service due to costly repairs. Contracts awarded through the GoodBuy Cooperative have been competitively procured, and in compliance with Texas Local and State procurement requirements. ALTERNATIVES: N/A Purchase of Two Crew Trucks for Gas Department AGENDA MEMORANDUM Action item for the City Council Meeting of July 23, 2019 OTHER CONSIDERATIONS: None 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: Gas Operations FINANCIAL IMPACT: X Operating □ Revenue □Capital □ Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget $110,000.00 $0.00 $110,000.00 Encumbered / Expended Amount $0.00 $0.00 $0.00 This item $106,861.11 $0.00 $106,861.11 BALANCE $3,138.89 $0.00 $3,138.89 Funding Detail: Fund:4130 Gas Fund Organization/Activity:34110 Gas Maintenance and Operations Mission Element:022 Manage the Gas Distribution System Project # (CIP Only): N/A Account:550020 Vehicles and Machinery RECOMMENDATION: Staff recommends approval of the action as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet City of Corpus Christi Contracts & Procurement Buyer: Cynthia Perez ITEM DESCRIPTION QUANTITY UNIT EXTENDED TOTAL 1 2020 Ford F450 Crew Cab Upgrade 1 $61,652.83 $61,652.83 2 2020 Ford F-550 Ext. Crew Cab Upgrade 1 $45,208.28 $45,208.28 106,861.11$ Silsbee FordSilsbee, Texas Price Sheet Purchase of Two Crew Trucks for Gas Department Contract - Goodbuy 19-8F000 DATE:July 23, 2019 TO:Peter Zanoni, City Manager FROM:Bill Mahaffey, Director of Gas Operations BillM@cctexas.com (361) 826-1801 Kevin Norton, Director of Utilities KevinN@cctexas.com (361) 826-1874 Kim Baker, Director of Contracts and Procurement Kimb2@cctexas.com (361)-826-3169 CAPTION: Motion authorizing a one-year service agreement for rental of nine pickup trucks (half- ton), plus contingency vehicles to be used on a daily or weekly basis when needed, with United Rentals, Inc. of Corpus Christi, Texas, for an amount not to exceed $113,361.10, with one additional one-year option for a total potential multi-year amount not to exceed $226,722.20, with the first-year funding through the Water, Wastewater, and Gas Funds. The trucks will be used by Gas Department and Water Utilities Department to meet daily operational requirements while production and delivery of newly purchased replacement vehicles transpires. PURPOSE: This service agreement is for monthly rental of nine trucks for the Gas Department and the daily/weekly rental, as needed, for the Utilities Department. BACKGROUND AND FINDINGS: These trucks are needed to meet operational requirements. These vehicles are used primarily to transport staff and equipment to various job sites. The Gas Department will rent nine trucks on a monthly rental, until such time that the vehicles on the capital outlay list can be purchased and received. The Utilities Department will utilize the daily and Rental of Trucks for Utilities and Gas Department AGENDA MEMORANDUM Action Item for the City Council Meeting of July 23, 2019 weekly rentals, on an as needed basis, mainly while its vehicles are being serviced. Contracts awarded through the NJPA-Sourcewell Purchasing Cooperative have been competitively procured, in compliance with Texas local and state procurement requirements. ALTERNATIVES: Not applicable OTHER CONSIDERATIONS: We are reviewing and will improve our Fleet Replacement Program to reduce the age of our fleet and ultimately the need for contracts such as this. 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: Gas Department Utilities Department FINANCIAL IMPACT: X Operating □ Revenue □ Capital □Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget $241,683.9 $198,381.93 $440,065.83 Encumbered / Expended Amount $149,279.17 $0 $149,279.17 This item $28,340.27 $198,381.93 $226,722.2 BALANCE $64,064.46 $0 $64,064.46 Funding Detail: Fund:4130 Gas Organization/Activity:34130 Gas Construction Mission Element:022 Gas Distribution System Project # (CIP Only): N/A Account:530160 Rentals Fund:4200 Wastewater Organization/Activity:33110 Oso Wastewater Plant Mission Element:064 Treat wastewater Project # (CIP Only): N/A Account:530160 Rentals Fund:4010 Water Organization/Activity:31010 Stevens Filter Plant Mission Element:062 Treat water Project # (CIP Only): N/A Account:530160 Rentals RECOMMENDATION: Staff recommends approval of the action as presented LIST OF SUPPORTING DOCUMENTS: Service Agreement Price Sheet Item Description Unit Qty Unit Price 1 ½ Ton 4 x 2 Truck Pickup, 12 Months EA 5 653.97$ 2 ½ Ton 4 x 2 Truck Pickup Crew Cab,12 Months EA 4 869.92$ 3 ½ Ton 4 x 2 Truck Pickup, Daily Days 100 139.63$ 4 ½ Ton 4 x 2 Truck Pickup, Weekly Weeks 20 420.21$ 5 Repairs Allowance 113,361.10$ Gas and Utilities Department United Rentals,Inc Corpus Christi, Texas 41,756.00$ Buyer: Japan Shah 13,963.00$ 8,404.20$ Total Contracts and Procurement Department 10,000.00$ Sourcewell # 091615-URI Price Sheet Rental of Trucks Total Price 39,237.90$ City of Corpus Christi DATE:June 28, 2019 TO:Peter Zanoni, City Manager FROM:Daniel McGinn, Director of Planning and Environmental Services DanielMc@cctexas.com (361) 826-7011 CAPTION: Resolution authorizing an agreement with Corpus Christi Alumina, LLC under Chapter 212 of the Texas Local Government Code, relating to the development of property in the City’s extraterritorial jurisdiction PURPOSE: To approve an agreement with Corpus Christi Alumina, LLC for development of a property in the City’s extraterritorial jurisdiction. BACKGROUND AND FINDINGS: Corpus Christi Alumina, LLC (CCA) is the owner of land in the City’s extraterritorial jurisdiction in San Patricio County consisting of a portion of the former Sherwin Alumina plant. CCA has entered into a contract for sale with Cheniere, Inc. or one of its subsidiaries (“Cheniere”) related to this property. The City has entered into an agreement with Cheniere related to the development of property in San Patricio County. Cheniere and CCA have requested that the property be included in a 212 agreement with the same terms that apply to the other property in the area owned by Cheniere. This agreement sets parameters relating to the sale of this property and otherwise contains many terms similar to existing agreements with Cheniere and Gulf Coast Growth Ventures. This non-annexation agreement expires on December 31, 2033. The agreement requires that CCA maintain the industrial use of the land. Under the agreement, CCA must make “payments in lieu of taxes” (PILOT) for tax years 2031, 2032, and 2033. Upon closing of the sale of land, this agreement will be assigned to Cheniere. Staff recommends approval of an agreement under Chapter 212 of the Local Government Code to guarantee that the property will remain in the City’s extraterritorial jurisdiction for the term of the agreement, which expires on December 31, 2033. As part of the agreement, CCA covenants that it will enter into an industrial district agreement with the City at the end of the term or earlier if the sale to Cheniere falls through. Failure to enter into such agreement will require additional payments in accordance with section 5.5(B) of the agreement, which requires payment of up to 10 years’ back PILOT. Approving a Chapter 212 Agreement with Corpus Christi Alumina LLC AGENDA MEMORANDUM Action Item for the City Council Meeting July 23, 2019 ALTERNATIVES: City Council could choose not to approve the agreement. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: The proposed item is consistent with City policy and the Comprehensive Plan as follows: Plan CC’s Vision Statements identifies that “Our broadly diversified economy provides opportunity for all.” Plan CC’s Future Land Use Plan indicates this area for industrial development. Plan CC Element 7, Goal 6 states “Annexation plans provide for orderly growth and industrial agreements in the ETJ.” Plan CC Element 7, Goal 6, Strategy 6 states, “Support the evaluation of the use of industrial district agreements in lieu of annexation for industrial area of the city and ETJ.” A Chapter 212 agreement in lieu of annexation also satisfies the intent of the Comprehensive Plan strategies identified above. EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Legal Planning City Manager’s Office CC Regional Economic Development Corporation FINANCIAL IMPACT: □Operating □ Revenue □ Capital x Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Funding Detail: Fund:n/a Organization/Activity: n/a Mission Element:n/a Project # (CIP Only):n/a Account:n/a RECOMMENDATION: Staff recommends approval of this resolution. LIST OF SUPPORTING DOCUMENTS: Resolution Section 212.172 Extraterritorial Jurisdiction Non-Annexation Agreement Resolution authorizing an agreement with Corpus Christi Alumina, LLC under Chapter 212 of the Texas Local Government Code, relating to the development of property in the City’s extraterritorial jurisdiction WHEREAS, Corpus Christi Alumina, LLC (“CCA”) is the owner of certain property within the extra-territorial jurisdiction of the City of Corpus Christi, which it intends to develop for industrial purposes; WHEREAS, CCA has entered into an agreement to sell the property to Corpus Christi Liquefaction, LLC (“Cheniere”); WHEREAS, the City has previously entered into an economic development agreement with Cheniere in accordance with Chapter 212 and 380 of the Local Government Code; WHEREAS, the City and CCA desire to lay out the regulations that will be applicable to the development and set certain requirements for the development in accordance with section 212.172 of the Texas Local Government Code; WHEREAS, CCA has agreed to be bound by the terms of an agreement with the City under Chapter 212 of the Texas Local Government Code, which includes certain provisions related to future plans for the property, including the addition of the property to an industrial district under the terms of an industrial district agreement; and WHEREAS, the City finds that it is in the best interest of the City to enter into the agreement with CCA to set out the requirements of the development. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the findings of the City Council and its actions approving this Resolution taken at the council meeting are hereby approved and adopted. SECTION 2. That the City Manager, or designee, is authorized to execute a Chapter 212 agreement with Corpus Christi Alumina, LLC relating to the development of property in the City’s extraterritorial jurisdiction. A copy of said agreement is attached hereto as Exhibit A. ATTEST: THE CITY OF CORPUS CHRISTI _____________________________ ____________________________ Rebecca Huerta Joe McComb City Secretary Mayor Corpus Christi, Texas _________ of ___________________, _______ The above resolution was passed by the following vote: Joe McComb ______________ Roland Barrera ______________ Rudy Garza ______________ Paulette M. Guajardo ______________ Gil Hernandez ______________ Michael Hunter ______________ Ben Molina ______________ Everett Roy ______________ Greg Smith ______________ Execution Version TEXAS LOCAL GOVERNMENT CODE SECTION 212.172 EXTRATERRITORIAL JURISDICTION NON-ANNEXATION AGREEMENT BETWEEN CITY OF CORPUS CHRISTI, TEXAS AND CORPUS CHRISTI ALUMINA LLC Execution Version EXTRA TERRITORIAL JURISDICTION NON-ANNEXATION AGREEMENT This Extraterritorial Jurisdiction Non-Annexation Agreement (this "Agreement") is entered into in accordance with and under the authority of Section 212.172 of the Texas Local Government Code ("Section 212.172") effective as of > 2019 (the "Effective Date"), by and between THE CITY OF CORPUS CHRISTI, TEXAS ("City"), and CORPUS CHRISTI ALUMINA LLC, a Delaware limited liability company ("Company"). RECITALS WHEREAS, Company has acquired the land more particularly described in Exhibit A, all or a portion of which is located within City's extraterritorial jurisdiction (all or such portion, the "ETJ Land"); and WHEREAS, Company has entered into that certain Agreement to Purchase and Sell Real Estate (with all exhibits, schedules and amendments thereto the "Cheniere Contract") with Cheniere Land Holdings, LLC ("Cheniere") for the sale of the ETJ Land for further development; and WHEREAS, City recognizes the positive economic impact that further development will bring to City and its extraterritorial jurisdiction through development and diversification of the economy, reduction of unemployment and underemployment through the creation of new jobs, and the attraction of new businesses; and WHEREAS, City has entered into an Economic Development Incentive Agreement with Cheniere ("Cheniere Agreement"); and WHEREAS, Section 212.172 authorizes City to make a written contract with an owner of land that is located in City's extraterritorial jurisdiction to guarantee the continuation of the extraterritorial status of such land and its immunity from annexation by City for a period of up to forty-five ( 45) years, and to agree to other terms regarding land usage, development, and regulation; and WHEREAS, Company has sought certainty from City as to future annexation of the ETJ Land, and in consideration of the positive economic impact that further development will bring to City and its extraterritorial jurisdiction, City intends that the ETJ Land not be annexed during the term of this Agreement; and WHEREAS, in consideration of the positive economic impact that further development will bring to City and its extraterritorial jurisdiction, City intends that the extraterritorial status of the ETJ Land be continued during the term of this Agreement; and WHEREAS, in consideration of the benefits provided to Company pursuant to this Agreement, Company has agreed to comply with the terms and conditions of this Agreement, and to make payments in lieu of taxes to City as provided in this Agreement. -1 - Execution Version NOW, THEREFORE, in consideration of the mutual benefits described in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Company agree as follows: ARTICLE I DEFINITIONS The recitals to this Agreement are hereby incorporated for all purposes. The terms "Agreement," "City," "Company," "Cheniere," "Cheniere Agreement'', "Cheniere Contract", "Effective Date," "ETJ Land," and "Section 212.172" shall have the above meanings, and the following words or phrases shall have the following meanings: 1.1 "Act of Default" or "Default" means a failure to timely, fully, and completely comply in any material respect with one or more requirements, obligations, performance criteria, duties, terms, conditions or warranties in this Agreement. 1.2 "Base Payment" has the meaning assigned to such term in Section 5.3 of this Agreement. 1.3 "Corpus Clrristi MSA" means the Corpus Christi Metropolitan Statistical Area (which includes San Patricio County, Nueces County, and Aransas County). 1.4 "Extraterritorial Jurisdiction Services Agreement" has the meaning assigned to such term in Section 2.5 of this Agreement. 1.5 "Force Majeure" means any failure by Company to comply with any requirement of this Agreement that is caused by (i) provisions of law, or the operation or effect of rules, regulations or orders promulgated by any governmental authority having jurisdiction over Company, the ETJ Land or any improvements or operations thereon or any upstream, intermediate or downstream equipment or support facilities as are necessary to such operations; (ii) any demand or requisition, arrest, order, request, directive, restraint or requirement of any government or governmental agency whether federal, state, military, local or otherwise; (iii) the action, judgment or decree of any court; (iv) floods, tornadoes, hailstorms, hurricanes, evacuation due to threats of hurricanes, lightning, earthquakes, washouts, high water, fires, acts of God or public enemies, wars (declared or undeclared), blockades, epidemics, riots or civil disturbances, insurrections, terrorism, sabotage, threats of terrorism or sabotage, strikes, labor disputes (it being understood that nothing contained in this Agreement shall require Company to settle any such strike or labor dispute), explosions, breakdown or failure of plant, machinery, equipment, lines of pipe or electric power lines (or unplanned or forced outages or shutdowns of the foregoing for inspections, repairs or maintenance), inability to obtain, renew or extend franchises, licenses or permits, loss, interruption, curtailment or failure to obtain electricity, gas, steam, water, wastewater disposal, waste disposal or other utilities or utility services, inability to obtain or failure of suppliers to deliver feedstock, raw materials, equipment, parts or materials (including, but not limited to, specially-manufactured tangible personal property that is manufactured by Company or its affiliates or purchased by Company from an unrelated party for installation and operation of the improvements on the ETJ Land), or inability of Company to ship, or failure of carriers to transport to or from Company's facilities, products (finished or otherwise), feedstock, raw materials, equipment, parts or material; or (v) any other cause (except financial), whether similar or -2 - Execution Version dissimilar, over which Company has no reasonable control and which forbids or prevents performance and cannot be overcome by reasonable diligence or without unusual expense. 1.6 "Industrial District Agreement" means an agreement made and entered into under the authority of Section 42.044 of the Texas Local Government Code, or successor provisions thereto. 1.7 "Notice" has the meaning assigned to such term in Section 8.7 of this Agreement. 1.8 "Term" has the meaning assigned to such term in Article III of this Agreement. ARTICLE II ETJ LAND ANNEXATION AND USAGE 2.1 Extraterritorial Status of ETJ Land. Pursuant to its authority under Section 212.172, City agrees that, beginning on the Effective Date, and subject to Section 2.2 and Company's compliance with the applicable terms of this Agreement, the ETJ Land shall remain in City's extraterritorial jurisdiction and shall not be annexed by City during the Term. 2.2 Industrial District Agreement or Other Agreement. (A) At any time during the Term, Company may give City written notification of a request to have all or any portion of the ETJ Land placed in an industrial district and bound by the terms of an Industrial District Agreement with City effective on the earlier of (i) the termination of this Agreement, and (ii) January 1, 2034. City will not withhold approval of any such request. (B) Upon expiration of the Term or earlier termination of this Agreement, if City and Company have not previously entered into an Industrial District Agreement pursuant to Section 2.2(A) with respect to any portion of the ETJ Land then owned by Company, Company shall, prior to the effective date of the expiration or earlier termination of this Agreement, enter into an Industrial District Agreement with City to include all of the ETJ Land then owned by Company and not covered by an Industrial District Agreement entered into pursuant to Section 2.2(A). Any Industrial District Agreement entered into pursuant to this Section 2.2(8) shall contain terms and provisions comparable in all material respects to the most favorable terms and provisions contained in any Industrial District Agreement then in effect to which City is a party, and will be effective on the earlier of (i) the termination of this Agreement, and (ii) January 1, 2034. (C) Notwithstanding the provisions of this Section 2.2, City and Company may, in lieu of entering into an Industrial District Agreement under such provisions, enter into another type of agreement (including, but not limited to, an agreement under Section 212.172 or an agreement under Chapter 380 of the Texas Local Government Code) containing such terms and provisions as are mutually agreed upon by City and Company, so long as such agreement is approved and executed prior to the effective date of the expiration or earlier termination of this Agreement. 2.3 Limited to Industrial and/or Commercial Use. Company covenants and agrees that during the Term, Company will use or permit the use of the ETJ Land only for industrial and/or commercial purposes, which use may include buildings or other improvements used for the administration or support of such industrial and/or commercial purposes. Holding the ETJ Land for future industrial and/or commercial use, and/or industrial and/or commercial support use, -3 - Execution Version without using it for non-industrial or non-commercial purposes, shall not be a violation of this Section 2.3. 2.4 Maintenance of ETJ Land and Improvements; Conduct of Operations. During the Term, Company shall maintain the ETJ Land and any of its improvements thereon, except those demolished or slated for demolition, and conduct its operations thereon, in a commercially reasonable manner. City shall not be responsible for any costs and expenses incurred in connection with the construction of any facilities. If requested by City, Company agrees to reasonably assist City in the preparation of any documentation necessary for the preparation and approval of any of the documents or actions required by City to perform any of its obligations under this Agreement. 2.5 City Services. (A) During the Term, City shall have no obligation to extend to the ETJ Land, or any improvements or operations thereon, any utility, fire protection, or other City services, except for services that are being provided to and paid for by Company on the date hereof, or as City and Company shall otherwise agree in writing (any such agreement, and any amendment or successor agreement thereto, an "Extraterritorial Jurisdiction Services Agreement"). (B) Company agrees that during the Term, the provision of water service, wastewater service or any other services to Company may be provided by any special district or city other than City. 2.6 Compliance with City Rules and Regulations. City and Company agree that during the Term, with respect to the ETJ Land and any improvements or operations thereon, City shall not require compliance with its rules or regulations: (1) governing zoning and platting of the ETJ Land; provided, however, Company further agrees that it will in no way divide the ETJ Land without complying with applicable state law and City ordinances governing subdivision of land; (2) prescribing any building, electrical, plumbing, inspection, or similar or related code or codes; or (3) otherwise governing the operation of Company's business on the ETJ Land; provided, however, that an Extraterritorial Jurisdiction Services Agreement between City and Company may require Company's compliance with certain rules or regulations directly relating to City's provision of services to Company thereunder. 2.7 Annexation by Another Entity. If (i) any attempt to annex any of the ETJ Land is made by another municipality, (ii) any attempt is made by another municipality to include any of the ETJ Land within the extraterritorial jurisdiction of such municipality, or (iii) any incorporation of any new municipality should attempt to include any of the ETJ Land within the boundaries or extraterritorial jurisdiction of such municipality, City may seek a temporary and permanent injunction against such annexation, inclusion or incorporation, with the cooperation of Company, or may take other legal action necessary or advisable under the circumstances to prevent such annexation, inclusion or incorporation. Company agrees to provide City with prompt notice of any such attempted annexation. 2.8 Annexation Corridor. Except for any sale of the ETJ Land or any portion thereof which is contemplated by Section 5 .1 (B) of this Agreement, should Company sell a portion of the ETJ Land to any third party that is not an affiliate, subsidiary, related company, entity, partnership or joint -4 - Execution Version venture that controls, is controlled by, or is under common control with Company, and should such sold portion of the ETJ Land no longer be covered by this Agreement pursuant to the assignment provisions of Section 5 .1 ("Relinquished Land"), Company shall, after City provides Company with sixty (60) days prior written notice of intent to initiate annexation proceedings with respect to such Relinquished Land, but only to the extent necessary to allow City to annex such Relinquished Land, permit City to annex a suitable strip of ETJ Land from City's boundary to such Relinquished Land (an "Annexation Corridor"). Any Annexation Corridor shall (i) except to the extent otherwise required by clause (ii) of this sentence be the minimum amount legally necessary to annex the Relinquished Land, and (ii) be located and configured in a manner that does not result in the annexation of any portion of the facilities. The location and configuration of any Annexation Corridor shall be subject to the approval of Company, which approval shall not be unreasonably withheld. Company and any Annexation Corridor shall have no right to any City services as a result of such annexation, except as otherwise provided in any Extraterritorial Jurisdiction Services Agreement; nor shall City extend, by ordinance or otherwise, any rules or regulations to the Annexation Corridor, including, but not limited to, those (a) governing zoning, plats and subdivisions of land, (b) prescribing any building, electrical, plumbing, inspection, or similar or related code or codes, or ( c) attempting to exercise in any manner whatsoever control over the conduct or operation of Company's business thereon. Any such Annexation Corridor shall remain subject to this Agreement and shall not be subject to City taxes. In the event that the need for any Annexation Corridor no longer exists, City agrees to immediately cease any annexation proceedings related to such Annexation Corridor or, if such Annexation Corridor has been annexed by City, within sixty (60) days after such need no longer exists, take the steps necessary to complete disannexation proceedings required to remove the Annexation Corridor from City limits. ARTICLE III TERM The term of this Agreement (the "Term") will begin on the Effective Date and shall continue until December 31, 203 3, unless this Agreement is earlier terminated as provided elsewhere herein. ARTICLE IV REPRESENTATIONS 4.1 Representations of City. City hereby represents to Company that as of the date hereof: (A) City is a duly created and existing municipal corporation and home rule municipality of the State of Texas under the laws of the State of Texas and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B) City has the power, authority and legal right under the laws of the State of Texas to enter into and perform this Agreement and the execution, delivery and performance hereof (i) will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation, and (ii) does not constitute a default under, or result in the creation of any lien, charge, encumbrance or security interest upon any assets of City under, any agreement or instrument to which City is a party or by which City or its assets may be bound or affected. -5 - Execution Version (C) This Agreement has been duly authorized, executed and delivered by City and constitutes a legal, valid and binding obligation of City, enforceable in accordance with its terms except to the extent that (i) such enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by City do not require the consent or approval of any person that has not been obtained. 4.2 Representations of Company. Company hereby represents to City that as of the date hereof: (A) Company is duly organized and existing and in good standing as a limited liability company under the laws of Delaware and shall remain in good standing in Delaware during the Term. Company is registered with the Texas Secretary of State and authorized to do business in Texas. (B) Company has the power, authority and legal right to enter into and perform its obligations set forth in this Agreement, and the execution, delivery and performance hereof (i) have been duly authorized and will not, to the best of its knowledge, violate any applicable judgment, order, law or regulation applicable to Company, and (ii) does not constitute a default under, or result in the creation of any lien, charge, encumbrance or security interest upon any assets of Company under, any agreement or instrument to which Company is a party or by which Company or its assets may be bound or affected. (C) This Agreement has been duly authorized, executed and delivered by Company and constitutes a legal, valid and binding obligation of Company, enforceable in accordance with its terms except to the extent that (i) such enforceability may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by Company do not require the consent or approval of any person that has not been obtained. ARTICLEV ADDITIONAL COMP ANY REQUIREMENTS 5.1 Assiruunent. Except as provided in this Section 5.1, Company may not assign all or part of its rights and obligations under this Agreement to a third party without prior written approval of City, which approval will not be unreasonably withheld, delayed or conditioned. (A) City agrees, that Company may assign in whole or in part its rights and obligations under this Agreement or with respect to all or any part of the ETJ Land or improvements thereon to any affiliate, subsidiary, related company, entity, partnership or joint venture of Company, as long as the assignee controls, is controlled by, or is under common control with Company; or to a -6 - Execution Version third party lender advancing funds for the acquisition of all or any part of the ETJ Land or improvements thereon or for the construction or operation of such improvements. City expressly consents to any assignment described in the preceding sentence, and agrees that no further consent of City to such an assignment will be required. Company agrees to provide City with written notice of any such assignment within 20 days of the effective date of such assignment. (B) City agrees that Company may assign in whole or in part its rights and obligations under this Agreement or with respect to all or any part of the ETJ Land or improvements thereon to Cheniere and/or any affiliate of Cheniere that is also a party to the Cheniere Contract upon the consummation of the Cheniere Contract. City expressly consents to any assignment described in the preceding sentence and agrees that no further consent of City to such an assignment will be required. Company agrees to provide City with written notice of any such assignment within 20 days of the effective date of such assignment. City further acknowledges and agrees that upon an assignment under Section 5.1 (B) of this Agreement, all terms, obligations, and requirements of Cheniere shall be governed by the Cheniere Agreement as modified from time to time by and between the City and Cheniere. (C) In the event that a permitted assignee hereunder shall assume in writing the obligations of the assignor hereunder, the assignor shall cease to have any obligations or further obligations under this Agreement. City agrees that performance of any obligations of a party or a permitted assignee under this Agreement by any affiliate, subsidiary, related company, entity, partnership or joint venture of such party or permitted assignee shall be accepted as performance of such obligations for all purposes under this Agreement. (D) In the event that the Cheniere Contract, as it may be amended from time to time, shall be terminated without the sale of the ETJ Land occurring thereunder, this Agreement shall terminate and the Parties shall enter into an industrial district agreement or other agreement in accordance with Section 2.2. 5.2 Prohibited Transfers. Company agrees that, without the express written approval of City, Company may not deed any part of the ETJ Land or improvements thereon to a tax-exempt entity or public entity; provided, however, that no such approval of City shall be required if any part of the ETJ Land or improvements thereon are (i) taken in condemnation proceedings or by any other exercise of any right or power of eminent domain, or (ii) conveyed or transferred under the threat of such condemnation proceedings or the exercise of any such right or power. 5.3 Payment In Lieu of Taxes. (A) For purposes of this Agreement, the term "Base Payment" shall mean, with respect to any calendar tax year, an amount equal to the sum of (i) an amount equal to one hundred percent (100%) of the ad valorem taxes for the ETJ Land based upon its taxable value (as determined by the relevant appraisal district for such tax year) which would otherwise be payable to City by Company if the ETJ Land was situated within the city limits of City, plus (ii) sixty-two and one- half percent (62.5%) of the ad valorem taxes for that portion of the facilities (excluding personal property and inventory) located on the ETJ Land based upon its taxable value (as determined by the relevant appraisal district for such tax year) which would otherwise be payable to City by Company if such portion of the facilities was located within the city limits of City. -7 - Execution Version (B) For the tax year 2031, Company shall pay City an amount equal to thirty-three percent (33%) of the Base Payment with respect to such tax year. For the tax year 2032, Company shall pay City an amount equal to sixty-six percent (66%) of the Base Payment with respect to such tax year. For the tax year 2033, Company shall pay City an amount equal to one hundred percent (100%) of the Base Payment with respect to such tax year. Each such payment shall be due on January 31 of the year following the tax year with respect to which such payment is made. Except as otherwise provided in .Section 5.3(C), Company shall not be obligated to pay City any portion of the Base Payment with respect to any other tax year during the Term. (C) If upon the effective date of the expiration of the Term or earlier termination of this Agreement Company and City have not entered into an Industrial District Agreement or another type of agreement in accordance with Section 2.2, Company will, within 120 days following the expiration or earlier termination of this Agreement (except as otherwise provided in Section 5.3(C)(ii)), make an additional payment to City in an amount equal to the following, whichever is applicable: (i) if the expiration or earlier termination of this Agreement occurs on or after January 1, 2029, an aggregate amount equal to the sum of one hundred percent (100%) of the Base Payment for each of the ten (10) calendar tax years immediately preceding the calendar tax year that includes the date of the expiration or earlier termination of this Agreement; or (ii) ifthe expiration or earlier termination of this Agreement occurs before January 1, 2029, an aggregate amount equal to the sum of one hundred percent ( 100%) of the Base Payment for each calendar tax year from and including the calendar tax year 2019 through and including the calendar tax year that includes the date of the expiration or earlier termination of this Agreement (it being understood and agreed that if the taxable value of the ETJ Land and/or the portion of the facilities (excluding personal property and inventory) located on the ETJ Land for the calendar tax year that includes the date of the expiration or earlier termination of this Agreement has not been determined by the relevant appraisal district within 90 days following the expiration or earlier termination of this Agreement, the amount due under this Section 5.3(C)Cii) for the calendar tax year that includes the date of the expiration or earlier termination of this Agreement shall be due within 90 days after such taxable values of the ETJ Land and/or the portion of the facilities (excluding personal property and inventory) located on the ETJ Land have been determined by the relevant appraisal district). (D) The obligations contained in this Section 5.3 shall survive the expiration or earlier termination of this Agreement until paid in full. 5.4 Use of Local Resources. [intentionally omitted] ARTICLE VI COVENANTS, WARRANTIES, OBLIGATIONS AND DUTIES OF COMPANY Company, as of the Effective Date, makes the following covenants and warranties to City -8 - Execution Version and agrees to timely and fully perform the following obligations and duties. 6.1 Untrue Statements. To the best of Company's knowledge, no written certificate or statement delivered by Company to City in connection herewith or with any transaction contemplated hereby contains any material untrue statement or fails to state any fact necessary to keep the statements contained therein from being misleading in any material respect except those which have been replaced by subsequent certificates or statements heretofore given to City in substitution. 6.2 Bankruptcy. Company is not the subject of any bankruptcy proceedings, and Company has not been informed that it is the subject of any potential involuntary bankruptcy proceedings. 6.3 Licenses and Authority. To the best of Company's knowledge, it has acquired or is in the process of acquiring and maintaining all necessary rights, licenses, permits and authority to carry on its business in City, City's extraterritorial jurisdiction, and San Patricio County, Texas, and will continue to use commercially reasonable efforts to maintain all such necessary rights, licenses, permits and authority. 6.4 Succession of Ownership. Except as provided in Section 5.1, no change of ownership or management of any part of the facilities nor a change of ownership or management of Company shall abate, waive, terminate or in any way relieve Company, or its successors and assigns, of their respective obligations herein. 6.5 Non-Discrimination. Company agrees that, as to all of the programs and activities arising out of this Agreement, it will not discriminate against any person on the basis of race, color, national or ethnic origin, sex, age, religion, or by reason of being disabled, or any other characteristic protected under applicable federal or state law. 6.6 Employment of Undocumented Workers. Company does not and agrees that it will not knowingly employ an undocumented worker (as defined by Texas Government Code, Section 2264.001(4)). Company's conviction of a violation under 8 U.S.C. 1324a shall constitute an Act of Default hereunder. ARTICLE VII DEFAULT 7.1 Company Default. Subject to Force Majeure and any consent given under Section 7.3 or variance granted under Section 8.12, if an Act of Default by Company is not cured and corrected within ninety (90) days after written notice from City to do so or by express waiver by City, City has the option to terminate this Agreement; provided, however, that if such Act of Default is caused by an event constituting Force Majeure, Company shall be allowed additional time reasonable under the circumstances to cure and correct such Act of Default. Company shall be liable to City for any actual proven damages sustained by City as a result of said Act of Default by Company under this Agreement, subject to the provisions of Section 8.13. 7.2 City Default. Should City fail to timely, fully and completely comply with any one or more of the requirements, obligations, duties, terms, conditions or warranties of this Agreement, such -9 - Execution Version failure shall be an Act of Default by City and City shall have ninety (90) days to cure and remove the Default after receipt of written notice to do so from Company. Upon the occurrence of an Act of Default by City (including, but not limited to, by annexing or attempting to annex any of the ETJ Land during the Term or wrongfully terminating this Agreement), Company shall, in addition to any other legal or other remedy that may be available to it, be entitled to specific performance and temporary and permanent injunctive and any other equitable relief from the date of such Act of Default for the balance of the Term (without proof of actual damage or inadequacy of legal remedy and without the necessity of posting a bond), including, but not limited to, enjoining City from enforcing any annexation ordinance adopted in violation of this Agreement, terminating this Agreement, or taking any other action in violation of this Agreement. 7.3 Consent and Excuse. In the event of unforeseeable third-party delays which are not Force Majeure and upon a reasonable showing by Company that it has immediately and in good faith commenced and is diligently and continuously pursuing the correction, removal or abatement of such delays by using commercially reasonable efforts, City may consent to and excuse any such delays, which consent and excuse shall not be unreasonably withheld, delayed or conditioned. 7.4 Delay. Any delay for any amount of time by a party in providing notice of Default to a defaulting party hereunder, or in taking action in response to a Default, shall in no event be deemed or constitute a waiver of such Default by the non-defaulting party of any of its rights and remedies available in law or in equity. 7.5 Waiver. Any waiver granted by a party to a defaulting party of an Act of Default shall not be deemed or constitute a waiver of any other existing or future Act of Default by the defaulting party or of a subsequent Act of Default of the same act or event by the defaulting party. ARTICLE VIII MISCELLANEOUS PROVISIONS 8.1 Att orneys' Fees. If any legal action or proceeding is commenced between City and Company under this Agreement, each party will be responsible for its own attorneys' fees and expenses. 8.2 Binding E ffect. This Agreement will be binding on and inure to the benefit of the parties and their respective successors and assigns. 8.3 Not an Industrial District Agreement. The Parties agree that this Agreement is not an Industrial District Agreement and should not be considered an Industrial District Agreement for any purpose. 8.4 Termination. At any time during the Term, Company may elect to terminate this Agreement as to all or any portion of the ETJ Land by providing City with written notice of such election. Following the giving of any such notice, this Agreement shall terminate and be of no further force or effect as to the portion or portions of the ETJ Land designated in such notice and all parties hereto shall be fully released of any further obligations under this Agreement relating to said designated portion or portions of the ETJ Land; provided, howev er, that if at the time of the giving of any such notice City is a Tier 2 Municipality with respect to such designated portion or -10 - Execution Version portions of the ETJ Land, Company and City shall enter into an Industrial District Agreement or another type of agreement in accordance with Section 2.2. 8.5 Compliance Review by City. City or City's designee may conduct a compliance review of Company's records relative to compliance with this Agreement to determine Company's compliance with the terms of this Agreement. This review may be done by City or its designee on an annual basis. 8.6 Access to Records. Company, during normal business hours and after being provided at least ten (10) working days prior written notice, shall allow City or its designee reasonable access to its records and books and all other relevant records relative to compliance with this Agreement, but the confidentiality of such records and information shall be maintained by City unless disclosure of such records and information shall be required by a court order, a lawfully issued subpoena, or the Office of the Texas Attorney General. 8.7 Notice. Any notice or other communication ("Notice") given under this Agreement must be in writing, and may be given: (i) by depositing such Notice in the United States Mail, postage paid, certified, and addressed to the party to be notified with return receipt requested; (ii) by personal delivery of such Notice to the party, or an agent of the party; or (iii) by confirmed facsimile, provided that a copy of such Notice is also given in one of the manners specified in (i) or (ii). Notice deposited in the mail in the manner specified will be effective two (2) days after such deposit. Notice given in any other manner will be effective only if and when received by the party to be notified. For the purposes of Notice, the addresses of the parties will, until changed as provided below, be as follows: Company: Corpus Christi Alumina, LLC Attn: Andrew Smith 330 Madison Avenue New York, New York 10017 Phone: ( 646) 949 -2440 Fax: ~~~~~~~~~- with a simultaneous copy (which shall not constitute notice) to: Locke Lord, LLP 200 Vesey Street 20th Floor New York, NY 10281 Phone: (212) 912 -2816 Fax: (646) 786 -4116 Attention: -11 - Andrew D. Otis Scott Husaker City: City of Corpus Christi Attn.: City Manager P .0. Box 9277 Corpus Christi, Texas 78469-9277 Phone: (361) 826-3220 Facsimile: (361) 826-3839 with a copy to: City Attorney P.O. Box 9277 Corpus Christi, Texas 78469-9277 Phone. (361) 826-3360 Facsimile: (361) 826-3239 Execution Version Any party may designate a different address at any time by giving Notice to the other party. 8.8 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, it is the intention of the parties that the remainder of this Agreement not be affected and it is also the intention of the parties that, in lieu of each provision that is found to be illegal, invalid or unenforceable, a provision be added to this Agreement which is legal, valid or enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 8.9 Article and Section Headings, Etc. The Article and Section headings contained in this Agreement are for convenience only and will in no way enlarge or limit the scope or meaning of such Articles and Sections. 8.10 No Third-Party Beneficiaries. This Agreement is not intended to confer any rights, privileges or causes of action upon any third party. 8.11 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. A facsimile signature will be deemed to be an original signature for all purposes. 8.12 Variances. City, in its sole discretion, may grant and approve variances to Company with respect to any of Company's requirements, obligations, performance criteria, duties, terms, conditions or warranties in this Agreement upon application in writing therefore by Company. 8.13 Damages not Included. Damages awarded in an adjudication brought against City or Company arising under the Agreement, including any amendments thereto, may not include: (i) -12 - Execution Version special or consequential damages; (ii) punitive or exemplary damages; or (iii) damages for unabsorbed home office overhead. 8.14 Jnteroretation. Each of the parties hereto has been represented by counsel of their choosing in the negotiation and preparation of this Agreement. In the event of any dispute regarding the interpretation of this Agreement, this Agreement will be interpreted fairly and reasonably and neither more strongly for nor against either party based on draftsmanship. 8.15 Relationship of the Parties. This Agreement will not be construed as establishing a partnership or joint venture, joint enterprise, express or implied agency, or employer/employee relationship between the parties. Neither City nor its officers, elected officials, employees, or agents assume any responsibility ofliability to any third party in connection with the development of the facilities or the design, construction or operation of any portion of the facilities. ARTICLE IX GENERAL TERMS 9.1 Entire Agreement. This Agreement (together with any Extraterritorial Jurisdiction Services Agreement) embodies the complete agreement of the parties hereto, superseding all oral or written, previous or contemporary, agreements between the parties relating to matters in this Agreement; and, except as otherwise provided herein, this Agreement cannot be modified or amended without a written agreement of the parties. 9.2 Required Recordation. City will file a copy of this Agreement in the real property records of each county in which any part of the land that is subject to the Agreement is located in compliance with Texas Local Government Code 212. l 72(c)(4). 9.3 Law. This Agreement is subject to all legal requirements of the State of Texas and U.S. Federal laws, and Company agrees that it will promptly comply in all material respects with all such applicable laws, regulations, orders and rules of the State of Texas and other applicable governmental agencies. This Agreement shall be governed by and construed in accordance with the laws and court decisions of the State of Texas without regard, however, to the conflicts oflaws provisions of Texas law. 9 .4 Confidential. City, its officers and employees, and its agents or contractors retained to perform economic development services for City, shall treat as confidential any information delivered by Company or its representatives to City and its representatives and shall not release such information to the public, unless required by law, court order, or ruling of the Texas Attorney General's Office. City shall immediately notify Company of requests or court orders to release such information. -13 - EXECUTED effective as of the Effective Date. By: Name: Andrew Title: Corporat STATE OF NEW YORK § § COUNTY OF NEW YORK § Execution Version This instrument was acknowledged before me on the Jo~ day of _fn_()J...,---+1 -----~' 2019, by A-V1C1Y2-w Sm1 ~ , on behalf of Corpus Christi Alumina, LLC. Notary Public, State of New York My commission expires: S.eple1'lll.~r tD 1 ..J.-0 1"' -14 - ! -· . " CYNTHIA MEDINA ·. Notary Public, State of New. York . ( ~··~egistration.#.OtNJE62•·7830; Le--Qt1al1fie'c1 ·1n Nau1ro-counry- Commiss_i on Expires Sept. 6_. 20 J..i'J.. Execution Version - 15 - CITY OF CORPUS CHRISTI, TEXAS By: _______________________________ Peter Zanoni City Manager ATTEST: APPROVED AS TO LEGAL FORM: _____________________________________ ____________________________________ Rebecca Huerta Assistant City Attorney City Secretary For City Attorney STATE OF TEXAS § § COUNTY OF NUECES § This instrument was acknowledged before me on the _______ day of __________________, 2019, by Peter Zanoni, City Manager, on behalf of City of Corpus Christi. Notary Public, State of Texas My commission expires: EXHIBIT A PROPERTY METES AND BOUNDS DESCRIPTION OF 410.487 ACRES OF LAND (NET 402.9886 ACRES) Execution Version Being 410.487 acres ofland (net 402.9886 acres), more or less, out of G. Valdez Survey, A-269, T.T. Williamson Surveys, A-288, A-290, A-291, San Patricio County, Texas and Corpus Christi Bay Submerged Tracts 1 and 2, Nueces County, Texas, and being out of a 1610.0 acre tract, a 4.264 acre tract and a 31.82 acre tract recorded in Clerk File No. 490819, Official Public Records of San Patricio County, Texas, and this 410.487 acres ofland made up of two tracts, each being more particularly described by metes and bounds as follows: NORTH 20.80 ACRE TRACT Beginning at the northeast comer of this tract, said comer also being the northwest comer of a 203.20 acre tract recorded in C.F. #649462, O.P.R.S.P.C.T. and being on the south right-of-way line of Highway 361, said comer having State Plane Grid Coordinate of N 17,219,865.62', E 1,384,905.46', NAD'83, Texas South Zone in U.S. feet; Thence with the east boundaries of this tract, the same being the west boundaries of said 203.20 acre tract as follows: S 29-55-20 W, 208.19 feet; S 00-28-40 E, 2107.32 feet, to the southeast comer of this tract; Thence S 89-37-22 W with the south boundary of this tract, 366.11 feet, to the southwest comer of this tract, said comer being on the east boundary of a 827.38 acre tract recorded in C.F. #649462, O.P.R.S.P.C.T.; Thence N 00-22-38 W with the west boundary of this tract, the same being the east boundary of said 827.38 acre tract, 2,560.76 feet, to the northwest comer of this tract, said comer also being the northeast comer of said 827.38 acre tract and said comer lying on the south right-of-way line of said Highway 361; Thence S 60-01-57 E with the north boundary of this tract, the same being the south right-of-way line of said highway, 541.64 feet, to the point of beginning and containing 20.80 acres of land, more or less. SOUTH 389.687 ACRE TRACT Beginning at the northeast comer of this tract, said comer being on the west boundary of the aforementioned 203.20 acre tract and having State Plane Grid Coordinate ofN 17,217,357.76', E A-1 Execution Version 1,384,820.83', NAD'83, Texas South Zone in U.S. feet and said 203.20 acre tract being out of a 341.3 acre tract recorded in C.F. #490819, O.P.R.S.P.C.T; Thence S 00-28-40, at 906.66 pass the southwest comer of said 203 .20 acre tract, in all 1,444.19 feet to an interior comer of this tract and said 341.3 acre tract; Thence with the east boundaries of this tract, the same being the west boundaries of said 341.3 acre tract, as follows: S 89-25-19 W, 160.89 feet, S 01-02-07 E, 322.96 feet; S 23-20-51 E, 93.03 feet; S 33-49-25 E, 89.86 feet; N 89-52-53 E, 656.55 feet; S 00-15-49 E, 242.54 feet; S 00-35-24 W, 251.78 feet; S 01-22-09 E, 611.35 feet; S 56-10-24 E, 89.56 feet; S 88-03-03 E, 141.09 feet; S 61-04-59 E, 293.53 feet, to a southeast comer of said 341.3 acre tract, said comer being on the east boundary of said 1610.0 acre tract and the west boundary of a Occidental Chemical Corporation 310.70 acre tract recorded in C.F. #605165, O.P.R.S.P.C.T. Thence S 00-17-00 E with the east boundary of this tract and said 1610.0 acre tract, the same being the west boundary of said 310.70 acre tract, 4139.64 feet, to the southeast comer of said 1610.0 acre tract and the northeast comer of the aforementioned 4.264 acre tract; Thence S 25-30-31 W, 437.10 feet, to the southeast comer of this tract and said 4.264 acre tract, said comer being on the north bulkhead line of the La Quinta Channel; Thence N 77-31-01 W with the south boundary of this tract, the south boundaries of said 4.264 acre tract and 31. 82 acre tract and said north bulkhead line, 2151.96 feet, to the southwest comer of this tract, said comer also being the southeast comer of a 212.20 acre tract recorded in C.F. # 531139, O.P.R.S.P.C.T.; N 01-10-33 W with the west boundary of this tract and said 31.82 acre tract, the same being the east boundary of said 212.20 acre tract, 767.49 feet, to a comer; Thence N 17-32-45 W with the west boundary of this tract and said 1610.0 acre, the same being the east boundary of said 212.20 acre tract, at 296.87 feet pass a northeast comer of said 212.20 acre tract, the same being the southeast comer of a 125.20 acre tract recorded in C.F. #613799, O.P.R.S.P.C.T., in all 1559.00 feet, to a comer of this tract; Thence entering said 1610.00 acre tract and with the west boundaries of this tract as follows: N 00-34-25 W, 1,009.16 feet, to the beginning of a curve to the right; A-2 Execution Version Thence with said curve to the right have a radial bearing of N 89-25-33 E, 382.66 feet, a central angle of 39-16-13, a length of262.27 feet; North, 369.46 feet; West, 161.75 feet; North 194.05 feet; N 45-00-00 E, 56.65 feet, N 00-20-25 W 1259.86 feet; N 03-20-06 E, 232.21 feet; N 19-42-49 W, 93.23 feet; N 63-56-35 E, 287.81 feet; N 18-21-49 W, 665.67 feet; N 27-51-44 E, 160.87 feet; N 16-38-15 W, 219.52 feet; N29-40-51 E, 103.17 feet, to the northwest comer of this tract; Thence with the north boundary of this tract N 72-06-55 E, 1362.22 feet, to a comer of this tract; Thence N 89-37-22 E, 366.49 feet, to the point of beginning and containing 389.687 acres ofland, more or less, save and except from this tract a 3.1067 acre Nashtec tract recorded in C.F. #539596, O.P.R.S.P.C.T. lying within an 4.3917 acre Nashtec tract, leaving a net acreage of 382.1886 acres, and said 4.3917 being more particularly described by metes and bounds below: Beginning at the northeast comer of this tract, said comer bearing S 26-03-09 W, 453.94 feet, from the southeast comer of the aforementioned 341.3 acre tract, said southeast comer being at the east boundary of said 1610.0 acre tract, the same being the west boundary of said Occidental Chemical Corporation 310.70 acre tract; Thence with the outer limits of this 4.3917 acre tract as follows: S 00-27-45 E, 1,399.65 feet; S 89-18-17 W, 118.98 feet; S 00-05-37 E, 222.82 feet; N 89-22-02 E, 120.35 feet; S 00-28-16 E, 116.61 feet, to the southeast comer of this tract; N 89-14-09 W, 269.30 feet, to the southwest comer of this tract; N 00-36-19 W, 339.02 feet; N 89-35-34 E, 18.29 feet; N 00-31-19 W, 545.70 feet; N 89-25-25 E, 21.87 feet; N 00-27-10 W, 118.30 feet; S 89-51-28 W, 36.64 feet; N 00-14-01W,156.16 feet; N 89-26-59 E, 172.70 feet; N 00-41-31 W 573.50 feet, to the northwest comer of this tract; N 89-22-57 E, 96.12 feet, to the point of beginning and containing 4.3917 acres ofland, more or less. A-3 Execution Version Notes: 1. Bearings are State Plane Grid. 2. Drawing accompanies this metes and bounds description. 3. Limits of tract based on surveys by Weisser Eng. And G& W Engineers and Cheniere provided information. 4. Description of 4.3917 acre tract based on survey conducted by Maverick Engineering, Inc. dated December 2, 2016. A-4 Chapter 212 Economic Development Agreement with CC Alumina, LLC Council Presentation July 23, 2019 1 2 Subject Property Outside City Limits CC Alumina Site DATE:July 2, 2019 TO:Peter Zanoni, City Manager FROM:Nina Nixon-Mendez, FAICP, Director of Development Services NinaM@cctexas.com (361) 826-3276 CAPTION: Ordinance closing, abandoning and vacating a 12,632 square foot portion of public street, Broadway Court lying between Water Street and Shoreline Boulevard, conditioned upon payment of $240,000.00 for fair market value of the improved street PURPOSE: The purpose of this ordinance is to close, abandon, and vacate a 12,632 square foot portion of a 60-foot-wide public street adjoining Block 4, South Water Beach Addition, as recorded in Volume 21, Page 50, Deed and Map Records, Nueces County Texas and Lot 6, Block 5, South Water Beach Addition, as recorded in Volume 68, Pages 959-960, Deed and Map Records of Nueces County, Texas, and requiring petitioners, Frost Bank, to comply with specified conditions. BACKGROUND AND FINDINGS: Frost Bank, is requesting the closure, vacation, and abandonment of a 12,632 square foot portion of an improved public street, which is a 60-foot-wide by approximately 183-foot long, adjoining Block 4, South Water Beach Addition, Deed and Map Records of Nueces County, Texas and Lot 6, Block 5, South Water Beach Addition, Deed and Map Records of Nueces County, Texas, identified as Broadway Court located between South Water Street and Shoreline Boulevard. The abandonment and vacation of the improved street is being requested by the property owner to safely allow pedestrian foot traffic to travel to and from the new Frost Bank Building from the adjacent parking lot. If closed the street would be owned by Frost Bank. ALTERNATIVES: Deny the request to close the street. Street Closure of Broadway Court between South Water Street and Shoreline Boulevard AGENDA MEMORANDUM Public Hearing and First Reading for the City Council Meeting of July 23. 2019 Public Hearing/Second Reading Ordinance for the City Council Meeting of July 30, 2019 OTHER CONSIDERATIONS: If the request is denied the street will remain open to vehicle traffic and the safety of employees and customers transiting to and from the bank parking lot will remain an issue. CONFORMITY TO CITY POLICY: These requirements are in compliance with the City Code of Ordinances Section 49-12(c). Public notice for the proposed street and alley closure was placed with the U.S. Postal Service on July 5, 2019 and published in the Caller Times on July 11, 2019. Notices were sent out to 21 property owners within 450 feet in proximity from the proposed alley closure. EMERGENCY / NON-EMERGENCY: Non-emergency DEPARTMENTAL CLEARANCES: All public and franchised utilities were contacted, and AT&T. Water, sewer and storm drains are located in the street. Development Service Department is requiring a 60’ utility easement to be maintained on the property. None of the other city departments or franchised utility companies stated any objections to the proposed street closure. FINANCIAL IMPACT: □ Operating □Revenue □ Capital X Not Applicable Fiscal Year: 2018-2019 Project to Date Expenditures Current Year Future Years TOTALS (CIP only) Line Item Budget Encumbered / Expended Amount This item BALANCE Funding Detail: Fund: Organization/Activity: Mission Element: Project # (CIP Only): N/A Account: Comments: The applicant will provide a fair market value payment of $240,000 for the street closure. RECOMMENDATION: Staff recommends approval. LIST OF SUPPORTING DOCUMENTS: Ordinance with Exhibit Presentation Ordinance closing, abandoning and vacating a 12,632 square foot portion of public street, Broadway Court lying between Water Street and Shoreline Boulevard, conditioned upon payment of $240,000.00 for fair market value of the improved street WHEREAS, Frost Bank (Owner of adjacent lot) is requesting the closure, abandonment and vacation of a p o r t i o n o f P u b lic I m p r o v e d Street, Broadway Court, located between W ater Street and Shoreline Boulevard; WHEREAS, with proper notice to the public, a public hearing was held on Tuesday, J u l y 23, 2019, during a meeting of the City Council, during which all interested parties and citizens were allowed to appear and be heard; WHEREAS, it has been determined that it is feasible and advantageous to the City of Corpus Christi to close, abandon and vacate a 12,632 square foot portion of public street, Broadway Court, lying between Water Street and Shoreline Boulevard; subject to compliance with specified condition, subject to compliance by the Owner with the conditions specified in this ordinance. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEX AS: SECTION 1. Pursuant to the request of Frost Bank, (Owner of adjacent property), the 12,632 square foot portion of public street, Broadway Court, lying between Water Street and Shoreline Boulevard, as recorded in Volume 9, Page 38-41, Volume 21, Pages 50 and Volume 68, Page 959-960 Map Records of Nueces County, Texas, more particularly described by Exhibit “A,” which is a metes and bounds description and field notes, and Exhibit “B”, which is the graphical representation of the legal description, is closed, abandoned, and vacated by the City of Corpus Christi (“City”), subject to the Owners’ compliance with the conditions specified in Section 2 of this ordinance. Exhibit “A,” which is a metes and bounds description and field notes, “Exhibit B”, which is the graphical representation of the legal description, which are attached to and incorporated in this ordinance by reference as if it was fully set out herein in their entireties. SECTION 2. The closing, abandonment and vacation of a section of the improved street described in Section 1 of this ordinance is expressly conditioned upon the Owners’ compliance with the following requirements: a. Payment to the City of $240,000 for the fair market value of the improved street pursuant to Corpus Christi Code 49-12. b. A 60’ Utility Easement is retained in favor of the City. c. Upon approval by the City Council and issuance of the ordinance, all grants of public street right-of-way closures must be recorded at the Owners’ expense in the real property Official Deed and Map Records of Nueces County, Texas, in which the aff ected property is located, with a copy of the recording provided to the City. Failure to record as required by this Ordinance within 180 calendar days will hereby make this Ordinance null and void. d. Failure to comply with all the conditions outlined in this Ordinance will hereby make the Ordinance null and void. That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2019, by the following vote: Joe McComb Michael Hunter Roland Barrera Ben Molina Rudy Garza Everett Roy Paulette M. Guajardo Greg Smith Gil Hernandez That the foregoing ordinance was read for the second time and passed finally on this the day of 2019, by the following vote: Joe McComb Michael Hunter Roland Barrera Ben Molina Rudy Garza Everett Roy Paulette M. Guajardo Greg Smith Gil Hernandez PASSED AND APPROVED on this the day of , 2019. ATTEST: Rebecca Huerta Joe McComb City Secretary Mayor City Council Presentation July 23, 2019 Street Closure of Broadway Court, between South Water Street and Shoreline Boulevard Vicinity Map N Chaparral StProposed Street Closure Aerial Overview N Yin Investment, LLC. A 7thStBorn ST Broadway Court Parking New Frost Bank Building Proposed Street Closure One Way Staff Recommendation Approval Broadway Court Broadway Ct Before Improvements After Improvements AGENDA MEMORANDUM Action item for the North Padre Island Development Corporation Meeting of July 23, 2019 DATE:July 1, 2019 TO:Peter Zanoni, City Manager FROM:Arlene Medrano, Business Liaison ArleneM@cctexas.com 361-826-3356 CAPTION: Special meeting of the North Padre Island Development Corporation. PURPOSE: This is a special meeting of the North Padre Island Development Corporation. BACKGROUND AND FINDINGS: Items for this meeting include: -April 16, 2019 Meeting Minutes for approval -Motion approving expenditures as laid out in Exhibit H to the revised Project and Financing Plan for the Tax Increment Reinvestment Zone #2. ALTERNATIVES: Do Not Approve These Items OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: EMERGENCY / NON-EMERGENCY: Not Applicable DEPARTMENTAL CLEARANCES: Special North Padre Island Development Corporation Meeting TIRZ #2 Board Island Strategic Action Committee “ISAC” FINANCIAL IMPACT: □Operating □ Revenue □ Capital X Not applicable Fiscal Year: 2018 - 2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE Fund(s): Comments:N/A RECOMMENDATION: Approve these Items. LIST OF SUPPORTING DOCUMENTS: Meeting Agenda Minutes Exhibit H AGENDA NORTH PADRE ISLAND DEVELOPMENT CORPORATION MEETING Date:Tuesday, July 23, 2019 Time:During the meeting of the City Council beginning at 11:30 a.m. Location:City Council Chambers, Corpus Christi City Hall 1201 Leopard Street Corpus Christi, Texas 78401 1.Call meeting to order. Secretary Rebecca Huerta calls roll. Board of Directors Greg Smith, President Joe McComb, Vice President Gil Hernandez Rudy Garza Michael Hunter Ben Molina Roland Barrera Paulette Guajardo Everett Roy Officers Keith Selman, Executive Director Rebecca Huerta, Secretary Paul Pierce, Assistant Secretary Constance P. Sanchez, Treasurer Judy Villalon, Assistant Treasurer 2.Public Comment 3.Approval of minutes from the board meeting held on April 23, 2019. 4.Treasurer’s report 5.Motion approving expenditures as laid out in Exhibit H to the revised Project and Financing Plan for the Tax Increment Reinvestment Zone #2. 6.Adjourn PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS 1 Packery Channel South Parking Lot Improvements This project consisted of the demolition of existing facilities,construction of approximately 11,500 square yards of new flexible pavement,parking lot,two concrete driveways,minor water and wastewater improvements,landscaping improvements, lighting improvements, and concrete pedestrian ramp. $640,447 Completed March 2006 Projects Include: Packery Channel Monitoring FY 2008-2009 Complete Packery Channel Monitoring FY 2009-2010 Complete Packery Channel Monitoring FY 2010-2011 Complete 2 Packery Channel South Parking Lot, Landscaping Phase 2 This project consisted landscaping and irrigation improvements to the newly constructed 300-space parking area including the construction of new planting islands with mexican fan palms, sea grape trees, decorative rock and irrigation. $145,461 Completed March 2008 3 Packery Channel Boat Ramp Parking Lot / Access Road This project consisted of the construction of approximately 17,000 square yards of HMAC flexible pavement parking facility adjacent to the existing Packery Channel Boat Ramp;construction of an access road and related signage and pavement markings, and the installation of 1,000 square yards concrete reinforced pavement adjacent to boat ramp,concrete bollards;minor drainage improvements;3,500 linear feet of electrical conduits; and minor landscaping. $1,053,176 total project cost. $549,216 from TIRZ #2 Completed July 2009 4 Packery Channel Boat Ramp Dredging This project consisted of dredging approximately 17,800 cy of the Packery Channel Boat Ramp and adjacent area.The work included environmental control measures to prevent erosion and allow for discharge of water from the dredging operations to discharge into the surf of the Gulf of Mexico.Minor amount of stone were installed at the boat ramp to enhance shoreline protection. $431,377 Completed April 2010 5 Packery Channel South Parking Lot Restroom (Phase 1) This project included the construction of restroom facilities at the South Parking Lot at the beach seawall on Windward Drive.The project included separate men and women facilities to with showers, toilets, changing stations, outdoor seating area, and native landscaping. $460,743 Completed July 2010 6 Packery Channel Parking Lot and Overlooks (Phase 2) This project consisted of improvements along the north and south sides of Packery Channel including seven overlook structures,parking lot,access road,pedestrian walkways,storm water structures lighted bollards with electrical receptacles,lighting,landscaping,concrete benches and repairs to shoreline structures. $2,869,224 Completed March 2012 7 Packery Channel Aids to Navigation / Signage This project consisted of lighting improvements to Packery Channel as required for safety and security along with signage to mark no wake zones. Per ISAC, additional funds needed to replace signs following Hurricane Harvey. $64,500 Completed December 2012 7a Packery Channel Aids to Navigation / Signage - Hurricane Harvey Repairs Per ISAC, additional funds needed to replace signs completed in Project 7 following Hurricane Harvey. Revised 2/20/18 $65,000 $7,166 Completed April 2019 PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 page 1 of 3 6/3/2019 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 8 Packery Channel Restroom Facilities (Phase 3) This project consists of the purchase and installation of a mobile restroom on the north side of the Packery Channel and adjacent parking lot.The project also includes turn-around and connector to Zahn Road.A mobile trailor restroom on the south side of Packery Channel with wastewater lift station and wastewater 2-inch force main (approximately 2,500 linear feet long)is also being planned.Priority Item.P&R recommends self contained,solar powered mobile units to be placed at Packery Channel Parking Lot,end of Zahn Road and on South side of PC (at a location yet to be determined)Build and Install portable restroom shelters to hold portable restroom units at various locations.Build and Install Portable Shower units on the North and South side of Packery Channel.Board approval of 4 portable restroom facilities at $65,000 each plus 20%contingency and shower facilities at $100,000 total. Revised 2/13/2018 $412,000 $402,000 Solar Powered Units: Complete. Showers: Partial Water line installed Spring '18. Waiting on BCC permit. 9 Packery Channel Ramps to Jetties (Phase 4) This project includes ADA beach access on the north side and the south side or the channel to provide access from the beach to the restroom,lookouts and parking lots.This project will include the ADA approved mobi-mats on the north side and the south side of Packery Channel to provide access from the beach to the restrooms,lookouts and parking lots.This project was designed as part of the Phase 2 project for parking and overlooks.Priority ITem:P&R recommends a new design for structures since the GLO will not approve construction of parking lots on the beach.For Mobi-Mats per ISAC recommendation. Revised 2/20/18 $35,000 $8,979 Complete 10 Packery Channel Dredging and Beach Nourishment - 2012 The project consisted of dredging approximately 264,300 cubic yards of beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline to the south of Packery Channel,and 15,000 cubic yards of sand from the north to south end of the N.Padre Island Seawall.Dredging schedule to be determined by results of annual study of channel. $1,820,843 Last Completed March 2012 10a Packery Channel Dredging and Beach Nourishment - 2020 The project consisted of dredging beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline.Dredging schedule to be determined by results of annual study of channel. $350,000 In permitting process. Waiting to hear from USACE. page 2 of 3 6/3/2019 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 11 Packery Channel Pavilion (Phase 5) This project includes the pavilion expansion adjacent to the north side restroom or north side boat launch.This will allow the deck area around the restroom and some sitting areas for visitors. Design will begin in FY 2016 and construction will follow in FY 2017 dependent upon available funding.P&R recommends further discussion on this item to determine if another amenity would better suit the area.ISAC recommends Pavillion staged at the boat ramp parking lot as well as pavillion like structure on north and south side of the jetty. Revised 2/20/18 $250,000 Requesting Addt'l $23,000 Estimated completion: Fall 2019. At 90% Design 14 Periodic Survey of Channel Conditions and Shoreline Packery Channel monitoring began in 2003 by Texas A&M Division of Nearshore Research by the U.S.Army Corps of Engineers.They ceased monitoring efforts in 2007 and the City assumed monitoring in 2008.The program includes the collection of bathymetric data in Packery Channel and the surrounding nearshore,measurement of elevation along the adjacent beach and inland channel segment (shoreline position),elevation measurements across the Mollie Beattie Coastal Habitat Community, and measurement of current velocity in the inland channel segment. Increase from $205,000 to $286,000 $1,847,312 (Lifetime Expenses to Date) 2018 monitoring complete. 2019 Contract Executed 3/29/19. 15 Packery Channel Revetment Repair Storm surge, strong currents, and waves from Hurricane Harvey caused damage to the slope protection and adjacent appurtenances along the banks of Packery Channel between the SH 361 bridge and the Gulf of Mexico. Repair concepts will be developed for two alternatives; one to return the project to its approximate pre-storm conditions, and another to upgrade the project to an improved condition that is more resilient to future storm impacts. The City will procure a design consultant through the RFQ process, and the selected firm will prepare the construction plans. Post design, construction will be procured. Added 2/13/18 $600,000 $417,027 60% submittal under review. 16 Park Road 22 Bridge On February 21, 2017, the TIRZ #2 board met and approved the amendment of using funds from TIRZ #2 to support the construction of two one-way bridges spanning Park Road 22. City Council approved this amendment on February 20, 2018. Added 2/20/2018 $4,000,000 $0.00 Waiting for developer on canals. 17 Beach Crosswalk at St. Augustine & Windward Dr. Per request of the Island Strategic Action Committee: Traffic improvement on Windward Drive at Saint Augustine Drive, for pedestrian crossing on Windward Drive to facilitate access to and from Michael J. Ellis Beach. Scope of work includes: crosswalk, access ramps, traffic signs, and pavement markings. Estimated costs are $23,000 for the crossing and associated traffic improvements; $9,000 for solar powered flashing LED crossing signs. $32,000 $20,331.00 Completed February 2019. 18 Feasibility Study Per Texas Tax Code Sec. 311.011. Project and Financing Plans. (c) Reinvestment zone financing plans must include (3) a finding that the plan is economically feasible and an economic feasibility study.$50,000 $33,173 Draft Complete 19 Contingency for all Projects Project contingency fund for all projects. $100,000 page 3 of 3 6/3/2019 NORTH PADRE ISLAND DEVELOPMENT CORPORATION CITY HALL – COUNCIL CHAMBERS 1201 LEOPARD STREET TUESDAY, APRIL 23, 2019 DURING THE CITY COUNCIL MEETING BEGINNING AT 11:30 A.M. SPECIAL MEETING MINUTES PRESENT MEMBERS STAFF Greg Smith, President Keith Selman, Executive Director Joe McComb, Vice President Rebecca L. Huerta, Secretary Gil Hernandez Paul Pierce, Asst. Secretary Rudy Garza Constance P. Sanchez, Treasurer Michael Hunter Ben Molina Roland Barrera Paulette M. Guajardo Everett Roy 1. Call meeting to order – President Smith called the meeting to order at 1:10 p.m. Secretary Rebecca L. Huerta called the roll and verified that a quorum of the board and the required officers were present to conduct the meeting. 2. Public Comment – None. 3. Approval of minutes from the board meeting held on February 19, 2019 – Mr. Roy made a motion to approve the minutes, seconded by Mr. Barrera and passed unanimously. 4. Motion authorizing the expenditure of up to $4,000,000 of TIRZ #2 funds for the construction of the Park Road 22 Bridge – Business Liaison Arlene Medrano stated that the North Padre Island Development Corporation (NPIDC) holds and manages the increment funds for the Tax Increment Reinvestment Zone No. 2 (TIRZ #2); that the purpose of this item is the authorization of the expenditure of up to $4,000,000 of TIRZ #2 funds for the construction of the Park Road 22 Bridge; that the TIRZ #2 recommends the project and expenditure, which was done on April 16, 2019; then the NPIDC approves the expenditure because it holds the funds; and lastly, City Council approves the agreement for the project, which is item 19 on today’s city council agenda. Mr. Barrera made a motion to approve Item 4, seconded by Ms. Guajardo and passed unanimously. 5. Adjournment – The meeting was adjourned at 1:12 p.m. 1 Project No.: 18144A 1 JJ/LH Legistar No.: 19-0749 Rev. 7 – 07/15/19 AGENDA MEMORANDUM Action Item for the City Council Meeting of July 23, 2019 DATE:June 6, 2019 TO:Peter Zanoni, City Manager THRU:Mark Van Vleck, Assistant City Manager markvv@cctexas.com (361) 826-3082 FROM:Jeff H. Edmonds, P. E., Director of Engineering Services jeffreye@cctexas.com (361) 826-3851 Jermel Stevenson, Director Parks & Recreation jermels@cctexas.com (361) 826-3042 CAPTION: Motion awarding a contract to CGC General Contractors, Inc. of San Antonio, Texas for construction of a covered pavilion associated with the Packery Channel Pavilion Boat Launch project in the amount of $218,387.70 for the base bid with funding available from the Tax Increment Reinvestment Zone #2. PURPOSE: This item authorizes award of a construction contract for a new covered pavilion adjacent to the Packery Channel Boat Launch. BACKGROUND AND FINDINGS: This project will create a shaded, programmable space that can be used for private and organized events, such as fishing tournaments. This project has been reviewed and approved by ISAC and the TIRZ No. 2 Board and is included in the approved TIRZ No. 2 Project Plan. This contract provides for construction of a new 60’ x 30’ open air pavilion. The scope includes: Site grading and compaction for required drainage improvements Finished concrete foundation ADA compliant sidewalk connecting new pavilion to existing parking lot Treated wood structure framing for the 60’ x 30’ pavilion 30-year asphalt shingle roof Miscellaneous electrical and interior lighting (controlled) Construction Contract Packery Channel Pavilion Boat Launch (TIRZ No. 2) Project No.: 18144A 2 JJ/LH Legistar No.: 19-0749 Rev. 7 – 07/15/19 The project was developed with one Base Bid plus one Additive Alternate as described below: Base Bid – 60’ x 30’ covered pavilion with associated components listed above. Additive Alternate No. 1 – Addition of twelve (12) 3’ wide x 15’ long wooden sunscreen structures that run the full length and width of all four sides of the structure. This alternative is not being recommended due to cost. On April 24th, 2019 the City received proposals from four (4) bidders. One bidder was determined to be non-responsive and not considered. A summary of the bids is provided below: BID SUMMARY CONTRACTOR BASE BID ADD. ALT. 1 TOTAL BID CGC General Contractors San Antonio, TX $218,387.70 $9,840.00 $228,227.70 Coast to Coast Construction Corpus Christi, TX $229,180.00 $4,800.00 $233,980.00 Geofill Schertz, TX $299,700.00 $3,600.00 $303,300.00 Mako Contracting, LLC Corpus Christi, TX $225,033.19 Did not submit bid $225,033.19 Engineer’s Opinion of Probable Cost $211,682.10 $24,000.00 $235,682.10 Based on Engineering Services policy for award recommendations, the lowest responsive and responsible bidder is CGC General Contractors. ALTERNATIVES: 1.Authorize award of construction contract. (Recommended) 2.Do not authorize award of construction contract. (Not Recommended) CONFORMITY TO CITY POLICY: Complies with statutory requirements for construction contract procurement. Conforms to FY 2019 Capital Improvement Planning (CIP) Budget. EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Parks and Recreation Project No.: 18144A 3 JJ/LH Legistar No.: 19-0749 Rev. 7 – 07/15/19 FINANCIAL IMPACT: □Operating □ Revenue X Capital □ Not applicable Fiscal Year 2018-2019 Project to Date Expenditures (CIP only) Current Year Future Years TOTALS Budget 273,000.00 273,000.00 Encumbered / Expended Amount 24,000.00 24,000.00 This item 218,387.70 218,387.70 Future Anticipated Expenditures This Project 30,612.30 30,612.30 BALANCE 0 0 Fund(s): Fund 3278 Pack Ch Proj TIF 2 Funding Detail: Fund: Packery Ch Proj TIF #2 (Fund 3278) Mission Element: 717 Organization/Activity: 18144-A-3278-EXP Project # (CIP Only):18144A Account: 550910 COMMENTS: On June 10, 2019, the Tax Increment Reinvestment Zone (TIRZ) #2 recommended and approved an amendment to the TIRZ #2 Project and Financing Plan to increase the budget for this project by $23,000, for a total budget of $273,000, shown above. RECOMMENDATION: Staff and Dykema Architects, Inc. recommend awarding a construction contract to CGC General Contractors, Inc. for the base bid only. Additive Alternate is not recommended due to available funding limitations. LIST OF SUPPORTING DOCUMENTS: Project Budget Location Map Presentation Letter of Recommendation Bid Tab FUNDS AVAILABLE: TIRZ #2…………………………………………………………………...……………………………..273,000 TOTAL FUNDS AVAILABLE…………………………………………………………………………………………………..273,000 FUNDS REQUIRED: Construction Fees:…………………….…………………………………………………………………………………….228,388 Construction (CGC General Contractors, Inc.)THIS ITEM…………............................................…………………………………………………………………..218,388 Contingency (10%)……………...……………………………………………………………………………………………………………………….10,000 Construction Inspection and Testing Fees:………………………………….……………………………………………………10,235 Construction Inspection…………………………………………..……………………………………………6,000 Construction Phase - Materials Testing Services (PSI) …...………………..……………………………………………………………………………….4,235 Design and Geotechnical Fees:…………………………………………………………………………………………..24,000 Original Contract (Dykena Architects Inc.)…………………………………………………………………………………………………….24,000 Reimbursements:…………………………………………………………………………………………………………...…………..10,377 Contract Administration (Engineering Svcs Admin/Finance/Capital Budget)……………………………………………………………………………….4,000 Engineering Services (Project Mgt/Constr Mgt)………………………………………………………………………………..5,000 Misc. (Printing, Advertising, etc.)………………………………………………………………………………………………………..1,377 TOTAL………………………………………………………………………………………………………………………………………273,000 ESTIMATED PROJECT BUDGET BALANCE…………………………………………………………………………………………0 Packery Channel Pavilion TIRZ #2 PROJECT BUDGET ESTIMATE Council Presentation July 23, 2019 Construct Pavilion Packery Channel Boat Launch (TIRZ No. 2) 1 2 Project Location 3 Project Vicinity 4 Project Scope This project provides for construction of a new 60’x 30’ open air pavilion. The scope includes: Site grading and compaction for required drainage improvements Finished concrete foundation ADA compliant sidewalk connecting new pavilion to existing parking lot Treated wood structure framing for the 60’ x 30’ pavilion Asphalt shingle roof Miscellaneous electrical and interior lighting (timer-controlled) 5 Project Schedule Projected Schedule reflects City Council award in July 2019 with anticipated construction completion in November 2019. Apr May Jun Jul Aug Sep Oct Nov 2019 ConstructionBid 6 QUESTIONS? 181 N CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES Construct Pavilion Packery Channel Boat Launch Project Number: 18144ALOCATION MAP NOT TO SCALE PROJECT LOCATION TABULATED BY: Joshua Lee Seahorn Dykema Architects, Inc. BID DATE: August 15, 2018April 24, 2019 ENGINEER'S ESTIMATE: $235,682 Mako Contracting, LLC 3636 S. Alameda, B153, Corpus Christi, TX 78411 ITEM DESCRIPTION UNIT QTY.UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT UNIT PRICE AMOUNT A1 Mobilization (5% Max)LS 1 $6,500.00 $6,500.00 $10,000.00 $10,000.00 $10,015.00 $10,015.00 $9,000.00 $9,000.00 A2 Contractor Home Office Overhead & Profit (HOH) (%)LS 1 $11,650.00 $11,650.00 $45,000.00 $45,000.00 $10,000.00 $10,000.00 $50.00 $50.00 A3 Field Office Overhead & Profit LS 1 -------------------$50.00 $50.00 A4 Bonds and Insurance LS 1 $8,750.00 $8,750.00 $10,000.00 $10,000.00 $660.00 $660.00 $6,600.00 $6,600.00 Subtotal Part 'A' (Items A1 through A4) $15,700.00 B1 Site Grading LS 1 $10,200.00 $10,200.00 $10,000.00 $10,000.00 $8,000.00 $8,000.00 $7,429.00 $7,429.00 B2 Sidewalks EA 1 $800.00 $800.00 $6,000.00 $6,000.00 $3,500.00 $3,500.00 $0.00 $0.00 B2 Sidewalks EA 2 ------------------$423.00 $846.00 B3 Termite Treatment LS 1 $325.00 $325.00 $1,800.00 $1,800.00 $250.00 $250.00 $960.00 $960.00 B4 Site Improvements Contingency Allowance LS 1 ------------------$4,000.00 $4,000.00 Subtotal Part 'B' (Items B1 through B4)$13,235.00 C1 Piling and Caps EA 15 $3,250.00 $48,750.00 $400.00 $6,000.00 $2,000.00 $30,000.00 $3,060.00 $45,900.00 C2 Concrete Slab CY 36.74 $400.00 $14,696.00 $250.00 $9,185.00 $500.00 $18,370.00 $550.00 $20,207.00 C3 Wood Post EA 15 $315.00 $4,725.00 $300.00 $4,500.00 $500.00 $7,500.00 $2,360.00 $35,400.00 C4 Roof Structure (joist, trusses, fasteners)LS 1 $16,000.00 $16,000.00 $19,000.00 $19,000.00 $143,000.00 $143,000.00 $11,800.00 $11,800.00 C5 Roof Sheating SF 2,445 $1.00 $2,445.00 $3.00 $7,335.00 $3.00 $7,335.00 $4.72 $11,540.40 C6 Asphalt / Shingles SF 2,445 $3.06 $7,481.70 $4.00 $9,780.00 $4.00 $9,780.00 $5.31 $12,982.95 C7 Gutters and Downspouts LF 208 $5.00 $1,040.00 $10.00 $2,080.00 $5.00 $1,040.00 $12.98 $2,699.84 Subtotal Part 'C' (Items C1 through C9)$140,530.19 D1 Connection to existing electrical service (trenching, conduit, new electrical panel)LS 1 $9,000.00 $9,000.00 $32,000.00 $32,000.00 $18,000.00 $18,000.00 $24,000.00 $24,000.00 D2 Electrical Outlets (conduits, wiring and connection)EA 3 $975.00 $2,925.00 $1,000.00 $3,000.00 $250.00 $750.00 $600.00 $1,800.00 D3 Lighting (conduits, wiring and connection)EA 8 $6,200.00 $49,600.00 $3,750.00 $30,000.00 $1,000.00 $8,000.00 $1,440.00 $11,520.00 D4 Electrical Contingency Allowance LS 1 ------------------$4,000.00 $4,000.00 Subtotal Part 'D' (Item D1 through D4)$41,320.00 E1 Owners General Contingency LS 1 $23,500.00 $23,500.00 $23,500.00 $23,500.00 $23,500.00 $23,500.00 $0.00 $10,000.00 Subtotal Part 'E' (Item E1)$10,000.00 PART F: ADDITIVE ALTERNATE No. 1 F1 Sun Screens as detailed on Sheet 5B EA 12 $820.00 $9,840.00 $400.00 $4,800.00 $300.00 $3,600.00 $354.00 $4,248.00 Subtotal Part 'F' (Item F1)$9,840.00 $4,800.00 $3,600.00 $4,248.00 $15,700.00 $13,235.00 $140,530.19 $41,320.00 Part E - Allowances (Item E1)$23,500.00 $23,500.00 $23,500.00 $0.00 $210,785.19 TOTAL ADDITIVE ALTERNATE No. 1 $9,840.00 $4,800.00 $3,600.00 $4,248.00 *Mako Contracting, LLC is non-responsive, bidder failed to submit a proper bid form. 9900 Doerr Lane, Schertz, TX 78154 $11,325.00 $57,880.00 $65,000.00 $95,137.70 $17,800.00 $57,880.00 $65,000.00 BID SUMMARY $299,700.00$218,387.70 $229,180.00 $20,675.00 $217,025.00 $95,137.70 $11,325.00 DEPARTMENT OF ENGINEERING SERVICES - CITY OF CORPUS CHRISTI, TEXAS Part C - New Pavillion (Items C1 through C9) 302 Laurel Dr., Corpus Christi, TX 78404 $65,000.00 $17,800.00 CGC General Contractors, Inc. TABULATION OF BIDS PART B: SITE IMPROVEMENTS Part A - General (Items A1 through A4) Construct Pavillion - Packery Channel Boat Launch E16422 $26,900.00 PART C: NEW PAVILLION PART D: ELECTRICAL IMPROVEMENTS $23,500.00 $20,675.00 $11,750.00 $23,500.00 Completion: 90 Cal Days Coast to Coast Construction TOTAL BASE BID PARTS A, B, C, D, E $26,900.00 515 N. Zarzamora St., San Antonio, TX 78207 Geofill Part D - Electrical Improvements (Item D1 through D4)$61,525.00 $26,750.00$65,000.00 $61,525.00 $26,750.00 PART E: ALLOWANCES $23,500.00 $11,750.00 $217,025.00 PART A: GENERAL Part B - Site Improvements (Items B1 through B4) *** *** Page 1 of 1 May 23, 2019 City of Corpus Christi Engineering Services 1201 Leopard Street Corpus Christi, Texas 78401 Re: Construct Pavilion Packery Chanel Boat Launch #18144A 149 Zahn Rd. Corpus Christi, Texas 78418 Dear Mr. Joseph Johnson On April 24, 2019 we received bids for the above-referenced project. There were four (4) bids received and reviewed for accuracy and compliance with the bid documents. After reviewing, Mako Contracting, LLC was noted as non-responsive for using the incorrect bid form. CGC General Contractors, Inc was the apparent low bidder with an amount including allowance of $218,387.70. After reviewing their bid form and statement of qualifications, I recommend accepting the bid from CGC General Contractors, Inc. The contractor will have 90 days after issuance of notice to proceed to complete the project. If you have any questions or require any additional information please do not hesitate to contact us. Sincerely, Joshua L. Seahorn, AIA, NCARB, RAS AGENDA MEMORANDUM Action Item for the City Council Meeting of July 23, 2019 DATE:July 3, 2019 TO:Peter Zanoni, City Manager THRU:Constance P. Sanchez, Interim Assistant City Manager FROM:Eddie Houlihan, Director of Management and Budget EddieHo@cctexas.com (361) 826-3792 Amendment to Financial Budgetary Policies CAPTION: Resolution amending Financial Budgetary Policies adopted by Resolution 031547 and providing financial policy direction on preparation of the annual budgets. PURPOSE: The financial budgetary policies are being recommended for amendment to address motion raised by City Council and staff recommendations. BACKGROUNDAND FINDINGS: At the City Council workshop on March 28, 2019, the City Council passed a motion directing City staff to make amendments to the existing financial/budgetary policies. These changed included removing some wording from various sections and clarifying the maximum limit that Internal Service funds can maintain in their reserve fund balances. Revisions to the financial/budgetary policies include the following: Section 2. Current Revenues Equal/Exceed Current Expenditures. This section is being revised to add funds available from all sources in the General Fund to the General Fund’s current revenues in presenting a balanced budget so that General Fund current revenues and funds available from all sources will equal or exceed current expenditures. Section 3. General Fund Balance/Working Capital. The maximum threshold for the reserve in the General Fund’s unassigned fund balance is being lowered from 25% to 20%. Section 4.1. Internal Service Funds. Unassigned reserve wording is being revised to remove the words “three percent (3%) and a maximum of an additional two percent (2%), for a total of five percent (5%) to “up to five percent (5%)”. Section 6. Property Tax Rate for Operations and Maintenance. The term “effective tax rate” was changed to read “no new-revenue maintenance and operations tax rate” as per the new State legislation. Also changed was the term “rollback rate” to “voter approval tax rate”. Section 7. Funding Level from General Fund for Street Maintenance. Some verbiage was removed for clarity. Section 8. Funding Level from General Fund for Residential Street Reconstruction. The sections relating to transferring General Fund revenue in Fiscal Years 2021, 2022 and 2023 were removed, and a section regarding the voter approved $0.06 from property tax for residential street reconstruction was added. Section 9. Funding of Texas Municipal Retirement System (TMRS) Contributions. The section was changed to indicate that the City has reached the fully-funded rate. Section 11. Operating Contingencies. Clarity was added to the section by setting maximums for operating contingencies for all operating funds. Section 14. Quarterly Financial Reporting and Monitoring. Language was added requiring the summary of fund balances to be included in quarterly reports. Section 17. Capital Improvement Plans/Funding. Language was added regarding how the Capital Improvement Planning process shall be organized. Section 19. Zero Based Budgeting Type of Process. The term “Zero Based Budgeting process” was replaced with “Line Item Budget review process”. Section 22. Budget Controls. This is a new section added to the City’s financial/budgetary policies to define some of the controls used to manage City budgets. This section also requires a closing appropriation ordinance to be brought to City Council regarding budget amendments resulting from prior year-end encumbrances. ALTERNATIVES: An alternative would be to leave the financial budgetary policies as they currently are written. OTHER CONSIDERATIONS: N/A CONFORMITY TO CITY POLICY: This item conforms to City policy. EMERGENCY/NON-EMERGENCY: Non-emergency DEPARTMENTAL CLEARANCES: Office of Management and Budget Financial Services Legal FINANCIAL IMPACT: X Operating □ Revenue □ Capital □Not applicable Fiscal Year: 2018- 2019 Current Year Future Years TOTALS Line Item Budget Encumbered / Expended Amount This item BALANCE RECOMMENDATION: Staff recommends approval of the resolution as presented. LIST OF SUPPORTING DOCUMENTS: Resolution Redline Resolution RESOLUTION AMENDI NG FINANCIAL BUDGETARY POLICIES ADOPTED BY RESOLUTION 0331240031547 AND PROVIDING FINANCIAL POLICY DIRECTION ON PREPARATION OF THE ANNUAL BUDGETS. ·WHEREAS, the City of Corpus Christi has a commitment to citizens as expressed in its Mission Statement: "Provide exceptional service to enhance the quality of life"; and WHEREAS, financial resources are budgeted to fulfill this commitment; and WHEREAS, it has been the City's goal to rebuild the General Fund balance to acceptable levels, a goal which was expressly stated in past policies with targets for accomplishing that goal; and WHEREAS, the City Council adopted a Financial Policy in January 1997 by Resolution No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965, modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a new Financial Policy in May 1998 by Resolution No. 023319; reaffirmed the Financial Policy in May 1999 by Resolution. No. 023657; reaffirmed the Financial Policy in May 2000 by Resolution No. 024044; reaffirmed the Financial Policy in May 2001 by Resolution No. 024455; reaffirmed the Financial Policy in May 2002 by Resolution No. 024863; reaffirmed the Financial Policy in April 2003 by Resolution No. 025280; reaffirmed the Financial Policy in April 2004 by Resolution No. 025737; reaffirmed the Financial Policy in May 2005 by Resolution 026265; reaffirmed the Financial Policy in January 2006 by Resolution 026605; amended the Financial Policy in April 2008 by Resolution 02'683; amended the Financial Policy in May 2009 by Resolution 028176; amended the policy in May 2010 by Resolution 028609; amended the policy in July 2011 by Resolution 029128; amended the policy in May 2012 by Resolution 029521; amended the policy in May 2013 by Resolution 029826; amended the policy in June 2013 by Resolution 029848; amended the policy in August 2014 by Resolution 030265; amended the policy in March 2016 by Resolution 030790; amended the policy in July 2017 by Resolution 031189; and amended the policy in August 2017 by Resolution 031240; and amended the policy in September 2018 by Resolution 031547. WHEREAS, as a result of those policies, the City achieved its previous goal for the General Fund balance and desires now to articulate a new strategy to maintain a revised General fund balance and to utilize any surplus balance to provide for enhanced financial stability in future years, and also desires to establish similar goals for fund balances of the Internal Service Funds, Enterprise Funds, the Combined Utility Reserve Fund, and Debt Service Reserve Funds; and · WHEREAS, this policy provides an essential guide to direct financial planning and to maintain and strengthen the City's bond rating; and WHEREAS, it has been the City's practice to reaffirm its financial policy or to adopt new or modified policy annually in conjunction with preparation of the budget. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: · 2 The Financial Budgetary Policies adopted by Resolution 031547 are amended to read as follows: Section 1. Development I Effective Date of Financial Budgetary Policy. This Financial Budgetary Policy reaffirms and amends the financial policies adopted each year by the City Council since 1997. The City Manager is directed to prepare each annual proposed budget in accordance with this policy. The City Council is prepared to make expenditure reductions that may be necessary to comply with this policy. This Financial Budgetary policy remains in effect and applies to future annual budget preparation processes until amended by City Council resolution. Section 2. Current Revenues Equal I Exceed /Current Expenditures. General Fund Ccurrent General Fund operating revenues and funds available from all sources will equal or exceed current budgeted expenditures. Section 3. General Fund Balance I Working Capital. To ensure that current and future services or operations are not severely impacted by any economic slowdowns, emergencies, natural disasters or other unforeseen circumstances, adequate financial resources will be set aside in the General Fund unassigned fund balance. In the Government Finance Officers Association's (GFOA) "Best Practice for Determining the Appropriate Level of Unrestricted Fund Balance in the General Fund (2015)", GFOA recommends, at a minimum, that general-purpose government, regardless of size, maintain an unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. Accordingly; it is the goal of the City Council to build and maintain a reserve in the General Fund unassigned fund balance which totals at least two months (or approximately 17%) of regular general fund operating expenditures up to 25%20% of total annual General Fund appropriations, exclusive of any one-time appropriations. At the end of the fiscal year, upon completion of the Comprehensive Annual Financial Report, the amount calculated to be at least two months of regular general fund operating expenditures up to 25%20% of total annual General Fund appropriations will be Reserved for Major Contingencies and set up in a separate account. The City Manager shall report on the status of compliance with this policy at least annually as part of the budget process. Uncommitted fund balance in excess of the policy requirement may be recommended for expenditure by the City Manager. Such expenditures shall be subject to the normal appropriations and expenditure approval process applicable to all other funds. Finally, it is noted that extraordinary situations may arise in which the timing of external actions out of the City's control may require the use of the unassigned fund balance. The City Manager shall note these situations to the City Council as soon as the information is known. Amounts that can be used for specific purposes pursuant to constraints imposed by formal action of the City Council will be reported as committed fund balance. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Existing resources in the fund that have been specifically committed for use in satisfying contractual obligations will be reported as assigned fund balance. 3 Section 4. Other Committed Fund Balances. 4.1 Internal Service Funds. To ensure that current and future services or operations are not severely impacted by any economic slowdowns, emergencies, natural disasters or other unforeseen circumstances, it is the goal of the City Council to build and maintain an unassigned reserve in each Internal Service Fund listed below, of up to three five percent (53%) and a maximum of an additional two percent (2%), for a total of five percent (5%) of the annual Internal Service Fund appropriations, exclusive of any one-time appropriations. Any amount in excess of five percent (5%) will be returned to the paying Funds or used for one-time expenditures. This subsection only applies to the Information Technologies Internal Service Fund; Stores Internal Service Fund; Engineering Services Internal Service Fund; Fleet Maintenance Internal Service Fund; and Facilities Maintenance Internal Services Fund. 4.2 Group Health Plans. It is a goal of the City to maintain a fund balance in the group health plans to (1) pay any associated administrative costs and claims run-out based upon the most recent actuarial study in the event the plan ceases or a change in the third-party administrator is made; and to (2) hold a reserve for catastrophic claims equaling 10% of projected medical and prescription claims. 4.3 General Liability Fund. It is a goal of the City to maintain a fund balance in the General Liability Fund (1) to fund long-term liabilities, incurred but not reported expenses (IBNR), and a risk margin for the adverse development of claims as determined by the actuarial recommendation and reflected in the Comprehensive Annual Financial Report; (2) to provide additional protection against significant unexpected claims experience in the fiscal year as a catastrophic reserve equaling 25% of the average incurred costs of claims experience over the prior five-year period; and (3) to protect against significant cost increases in the fiscal year for purchased insurance coverage premiums equaling 25% of the cost for purchased insurance over the prior year. 4.4 Worker's Compensati on Fund. It is a goal of the City to maintain a fund balance in the Worker's Compensation Fund (1) to fund long-term liabilities, incurred but not reported expenses (IBNR), and a risk margin for the adverse development of claims as determined by the actuarial recommendation and reflected in the Comprehensive Annual Financial Report; and (2) to protect against significant unexpected claims experience in the fiscal year as a catastrophic reserve equaling 25% of the average of incurred costs of claims experience over the prior five-year period. 4.5 Enterprise Funds. To ensure that current and future services or operations are not severely impacted by any economic slowdowns, emergencies, natural disasters or other unforeseen circumstances, it is the goal of the City Council to build and maintain an unreserved fund balance in each of the Enterprise Funds of a maximum of twenty-five percent (25%) of the annual Enterprise Fund appropriations, exclusive of debt service and any one-time appropriations, and anything over that amount shall be designated for specific purpose(s). This subsection only applies to Water, Wastewater, Gas, Stormwater, Airport, and Marina fund balances. 4.6 Debt Service Reserve Fund. The City will strive to maintain a debt service fund 4 balance for bonds, certificates of obligation, tax notes, and other debt instruments of at least two percent (2%) of the annual debt service appropriation(s) for the fiscal year; provided, however, this requirement shall comply with the provision of Treasury Regulation 1.148-2(f) which limits the amount of reserve funds that may secure the payment of debt service on bonds. Section 5. Liabilities for Other Post-Employment Benefits, Accrued Compensated Absences and Net Pension Liability. For financial reporting purposes, the City will record liabilities for Other Post-Employment Benefits, Accrued Compensated Absences and Net Pension Liability according to guidance of the Governmental Accounting Standards Board. These liabilities will be funded on a pay-as-you-go basis, and thus will not be included in the minimum fund balances of the affected funds. Section 6. Property Tax Rate for Operations and Maintenance. Each proposed annual budget shall be prepared assuming that the City will be adopting a tax rate necessary to be in compliance with Section 2 above. Full consideration will be given to achieving the effective tax rate "no new-revenue maintenance and operations tax rate" for maintenance and operations when assessed property values decrease, and full consideration will be given to maintaining the current tax rate when assessed properties values increase, as long as the tax rate does not exceed the rollback rate "voter approval tax rate" (which is the rate that allows the City to raise the same amount of maintenance and operation revenue raised in the prior year, excluding new property, with a 3.5% increase.) Section 7. Funding Level from General Fund for Street Maintenance. City Council approved Resolution #029634 on September 18, 2012 to declare its intent to establish a street user fee for implementation in Fiscal Year 2013-2014. Section 4 of this resolution expressed an intent to preserve the funding level of the Street Department at the percentage of the Street Fund's budget in Fiscal Year 2012-2013 relative to the General Fund. Excluding a decrease in General Fund revenues, the percentage of the Street Fund's budget relative to the General Fund will neither go below that of Fiscal Year 2012-2013 nor go below the dollar equivalent if General Fund revenues increase. That funding level equates to 6.00% of General Fund revenue less grants from the annual adopted operating budget or $10,818,730, whichever is greater. Beginning in Fiscal Year 2015-2016, the funding level will be 6% of General Fund revenue less grants and industrial district revenue or $10,818,730, whichever is greater. Additionally, beginning in Fiscal Year 2015-2016, 5% of industrial district revenue will be transferred to the Street Maintenance Fund. Beginning in Fiscal Year 2018-2019, the funding level will be 6% of General Fund revenue less grants, industrial district revenue and any property taxes passed through the General Fund and transferred to the Residential Streets Reconstruction Fund or $10,818,730, whichever is greater. Section 8. Funding Level from General Fund for Residential Street Reconstruction Fund. In order to develop a long-term funding mechanism for capital improvements related to residential/local streets, implement the following: 1. For 3 years beginning in Fiscal Year 2014-2015, appropriate $1,000,000 each year from the uncommitted fund balance of the General Fund and transfer to the Residential Street Reconstruction Fund. 5 2.1. Beginning in Fiscal Year 2015-2016, appropriate and transfer 5% of industrial district revenue to the Residential Street Reconstruction Fund. 2. In Fiscal Year 2020-2021, transfer 1/3 of one percent of the General Fund revenue less: • Grants • Industrial District revenue, and • Any General Fund transfer to Residential Streets To the Residential Street Reconstruction Fund. 3. In Fiscal Year 2021-2022, transfer 2/3 of one percent of the General Fund revenue less: • Grants • Industrial District revenue, and • Any General Fund transfer to Residential Streets To the Residential Street Reconstruction Fund. Grants and industrial district revenue to the Residential Street Reconstruction Fund. 4. In Fiscal Year 2022-2023 and thereafter, transfer 1% of the General Fund revenue less: • Grants • Industrial District revenue, and • Any General Fund transfer to Residential Streets To the Residential Street Reconstruction Fund. 3. Grants and industrial district revenue to the Residential Street Reconstruction Fund. B. At a Special City Election in November 2016 Corpus Christi voters voted to create a dedicated fund to be used solely for residential street reconstruction and the city council was authorized each year to levy, assess and collect a property tax not to exceed six cents ($0.06) per one hundred dollars ($100.00) of assessed value for the purpose of residential street reconstruction to be deposited in such fund. Said taxes shall be used solely for the purpose of residential street reconstruction, including associated architectural, engineering and utility costs, and shall be implemented gradually at a rate not to exceed two cents ($0.02) per one hundred dollars ($100.00) of assessed value per year. For the purposes of this provision, the term “reconstruction” is defined as removing all or a significant portion of the pavement material and replacing it with new or recycled materials. The dedicated fund established by this section may not be used for payment of debt service. The City Council approved two cents ($0.02) per one hundred dollars ($100.00) of assessed value for fiscal year 2018-2019 for the purpose of residential street reconstruction. 6 Section 9. Funding of Texas Municipal Retirement System (TMRS) Contributions. The City reached the fully funded contribution rate for TMRS in January 2019. It is a goal of the City Council to contribute maintain the fully funded contribution rate to TMRS to fund the general City employees' and sworn police officers' pension. In order to implement this goal, beginning in Fiscal Year 2015-2016, an additional 2% will be added to the City's contribution to TMRS each year until the actuarially determined fully funded rate is met. Section 10. Priority of City Services. The City Council recognizes the need to provide public services which support the continued growth of the local economy and personal income growth to insure an adequate financial base for the future. Section 11. Operating Contingencies. The City Manager is directed to budget at up least to $5200,000 per year as an operating contingency as part of General Fund expenditures in order to further insulate the General Fund unreserved fund balance from unforeseen circumstances. The City Manager is directed to budget similar Up to 2% of annual appropriations for operating contingencies may be budgeted, as deemed necessary,as expenditures in enterprise, internal service, and special revenue funds of the City. Section 12. Multi-year Budget Model. Whereas many of the City's fiscal goals require commitment and discipline beyond the one year considered within the City's fiscal year, the City will also consider adoption of business plans necessary for the accomplishment of City short term or long term goals. These business plans will be presented and recommended to the City Council in the proposed annual operating budget and shall be used for development of future budget recommendations as necessary to accomplish these goals. The City shall also maintain business plans and/or rate models for enterprise operations. Preparation of the annual budget will include model for years two and three, with specific revenue and expenditure assumptions and with respect to the debt horizon. Section 13. Cost Recovery. The City may recover costs in the General Fund by charging other funds for administrative costs incurred to support their operations. The City shall attempt to pursue and maintain a diversified and stable revenue stream for the General Fund in order to shelter finances from short term fluctuations in any one revenue source. In order to meet the requirements outlined herein, every effort will be made to base rates on a cost of service model, so costs incurred for certain services are paid by the population benefiting from such services. Section 14. Quarterly Financial Reporting and Monitoring. The City Manager shall provide interim financial performance reports and updates to the City Council on a quarterly basis. These interim reports must include detailed year to date revenue and expenditure estimates, as well as explanations for major variances to budget. The format of the quarterly report must be relatively consistent with the adopted budget. Quarterly financial reports shall include a summary of fund balances for each fund and a statement regarding compliance with these financial policies, where applicable. 7 Section 15. Use of Nonrecurring Revenue. The City shall endeavor to use nonrecurring revenue to fund one-time expenditures. Nonrecurring revenue may include items such as sale of fixed assets, court settlements, or revenue collection windfalls. Section 16. Debt Management. The City Manager shall adhere to the Debt Management Policy adopted by Resolution 028902 on December 14, 2010, and reaffirmed by Resolution 029321 on December 13, 2011. Section 17. Capital Improvement Plans/Funding. The annual Capital Improvement Plan (CIP) shall follow the same a similar cycle as the Operating Budget. As part of the annual capital budget process, the City shall update its short and long-range capital improvement plans. For the three-year short-term plan,projects include any projectedincremental operating costs for programmed facilities. The long-range plan extends for an additional seven. years, for a complete plan that includes ten years. Short- term plan projects must be fully funded, with corresponding resources identified. Due to the limited amount of available funds, the CIP serves to establish a priority for the many necessary projects. Therefore, the CIP will be updated annually in order to incorporate the changing priorities, needs and funding sources. As part of a concerted effort to reduce debt levels and improve financial flexibility, the City shall pursue pay-as-you-go capital funding where possible. The CIP is a necessary tool in the capital planning process, and shall be organized as follows: A. ANNUAL CAPITAL BUDGET: This is the first year of the Short Range CIP and shall be fully funded. All approved projects must have corresponding funding resources identified by individual project. Projects added to the approved annual Capital Budget shall require City Council approval. B. SHORT RANGE CIP: A schedule of capital expenditures to be incurred over a three (3) year period to carry out the City's CIP program. The short range plan projects must have programmed funding with corresponding funding resources identified by individual project. Any projects that include projected increases to operating costs for programmed facilities will be notated. A review of all CIP encumbrances will be done annually. Any encumbrance that does not represent a true commitment will be liquidated. C. LONG RANGE CIP: The long range plan extends for an additional seven years beyond the short range, for a complete plan that includes ten years. The long range CIP projects must have realistic planned funding tied to the projects. Section 18. Expenditures. Within the limitation of public service needs, statutory requirements and contractual commitments expenditures included in the operating budget shall represent the most cost-efficient method to deliver services to the citizens of Corpus Christi. Efforts to· identify the most cost-efficient method of service delivery shall continue during the fiscal year after the operating budget is adopted and may be implemented during the fiscal year as necessary and of benefit to the public. Section 19. Zero-Based Budgeting type ofLine Item Budget review process. To During the prepare preparation of the City's operating budget, the City staff shall utilize . a Zero-Based Budgeting type of processperform a line item budget review of departmental budgets. The staff shall be accountable for utilizing a Zero-Based Budgeting type of process comprehensively for all department budgets. 8 Section 20. A State Hotel Occupancy Tax (HOT) Fund. A state HOT Fund was created for the Fiscal Year (FY) 2015-16 budget as a result of the Texas 84th Legislature's (2015) House Bill (HB)1915 that allowed Corpus Christi and three other Texas cities to retain 2% of the state hotel occupancy taxes collected by the cities to be reinvested for beach maintenance and restoration. The expenditures in this Fund shall not be used to offset expenditures for Gulf Beach maintenance currently paid for out of the local HOT Fund. The funding for Gulf Beach maintenance in the local HOT Fund shall not fall below the lesser of $1,825,088 or 15% of HOT revenue (not including the Convention Expansion portion) budgeted. This amount will be in addition to any expenditures budgeted for Gulf Beach Maintenance in the State HOT Fund. Section 21. Drought Surcharge Exemption Fund. Beginning in Fiscal Year 2018-2019 The Drought Surcharge Exemption Fees collected from large-volume industrial customers pursuant to Ordinance 031533 shall be dedicated for development of a drought-resistant water supply and shall not be used for operation and maintenance costs of any water supply, treatment facility or distribution system. The Drought Surcharge Exemption Fees paid to the City will be accounted for and reserved in a separate Drought Surcharge Exemption Fund and used only for capital costs to develop and/or acquire an additional drought-resistant water supply including but not limited to, payment of debt for an allowable capital project. Section 22. Budget Controls. Budgetary compliance is an important tool in managing and controlling governmental activities, as well as ensuring conformance with the City’s budgetary limits. Budgetary controls, levels at which expenditures cannot legally exceed appropriated amounts, are established within individual funds. The City utilizes an encumbrance system of accounting as one mechanism to accomplish effective budgetary controls. Encumbrances at year end which represent a true commitment are generally appropriated as part of the following year’s budget. A closing appropriation Ordinance will be brought to the City Council with budget amendments by fund, resulting from prior year end encumbrances, approximately two months after year end. RESOLUTION AMENDING FINANCIAL BUDGETARY POLICIES ADOPTED BY RESOLUTION 031547 AND PROVIDING FINANCIAL POLICY DIRECTION ON PREPARATION OF THE ANNUAL BUDGETS. ·WHEREAS, the City of Corpus Christi has a commitment to citizens as expressed in its Mission Statement: "Provide exceptional service to enhance the quality of life"; and WHEREAS, financial resources are budgeted to fulfill this commitment; and WHEREAS, it has been the City's goal to rebuild the General Fund balance to acceptable levels, a goal which was expressly stated in past policies with targets for accomplishing that goal; and WHEREAS, the City Council adopted a Financial Policy in January 1997 by Resolution No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965, modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a new Financial Policy in May 1998 by Resolution No. 023319; reaffirmed the Financial Policy in May 1999 by Resolution.No. 023657; reaffirmed the Financial Policy in May 2000 by Resolution No. 024044; reaffirmed the Financial Policy in May 2001 by Resolution No. 024455; reaffirmed the Financial Policy in May 2002 by Resolution No. 024863; reaffirmed the Financial Policy in April 2003 by Resolution No. 025280; reaffirmed the Financial Policy in April 2004 by Resolution No. 025737; reaffirmed the Financial Policy in May 2005 by Resolution 026265; reaffirmed the Financial Policy in January 2006 by Resolution 026605; amended the Financial Policy in April 2008 by Resolution 02'683; amended the Financial Policy in May 2009 by Resolution 028176; amended the policy in May 2010 by Resolution 028609; amended the policy in July 2011 by Resolution 029128; amended the policy in May 2012 by Resolution 029521; amended the policy in May 2013 by Resolution 029826; amended the policy in June 2013 by Resolution 029848; amended the policy inAugust 2014 by Resolution 030265; amended the policy in March 2016 by Resolution 030790; amended the policy in July 2017 by Resolution 031189; amended the policy in August 2017 by Resolution 031240; and amended the policy in September 2018 by Resolution 031547. WHEREAS, as a result of those policies, the City achieved its previous goal for the General Fund balance and desires now to articulate a new strategy to maintain a revised General fund balance and to utilize any surplus balance to provide for enhanced financial stability in future years, and also desires to establish similar goals for fund balances of the Internal Service Funds, Enterprise Funds, the Combined Utility Reserve Fund,and Debt Service Reserve Funds; and · WHEREAS, this policy provides an essential guide to direct financial planning and to maintain and strengthen the City's bond rating; and WHEREAS, it has been the City's practice to reaffirm its financial policy or to adopt new or modified policy annually in conjunction with preparation of the budget. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,TEXAS: · 2 The Financial Budgetary Policies adopted by Resolution 031547 are amended to read as follows: Section 1. Development I Effective Date of Financial Budgetary Policy.This Financial Budgetary Policy reaffirms and amends the financial policies adopted each year by the City Council since 1997. The City Manager is directed to prepare each annual proposed budget in accordance with this policy. The City Council is prepared to make expenditure reductions that may be necessary to comply with this policy. This Financial Budgetary policy remains in effect and applies to future annual budget preparation processes until amended by City Council resolution. Section 2.Current Revenues /Current Expenditures. General Fund current revenues and funds available from all sources will equal or exceed current expenditures. Section 3. General Fund Balance I Working Capital.To ensure that current and future services or operations are not severely impacted by any economic slowdowns, emergencies, natural disasters or other unforeseen circumstances, adequate financial resources will be set aside in the General Fund unassigned fund balance. In the Government Finance Officers Association's (GFOA) "Best Practice for Determining the Appropriate Level of Unrestricted Fund Balance in the General Fund (2015)", GFOA recommends, at a minimum, that general-purpose government, regardless of size, maintain an unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. Accordingly; it is the goal of the City Council to build and maintain a reserve in the General Fund unassigned fund balance which totals at least two months (or approximately 17%) of regular general fund operating expenditures up to 20% of total annual General Fund appropriations, exclusive of any one-time appropriations. At the end of the fiscal year, upon completion of the Comprehensive Annual Financial Report, the amount calculated to be at least two months of regular general fund operating expenditures up to 20% of total annual General Fund appropriations will be Reserved for Major Contingencies and set up in a separate account. The City Manager shall report on the status of compliance with this policy at least annually as part of the budget process. Uncommitted fund balance in excess of the policy requirement may be recommended for expenditure by the City Manager.Such expenditures shall be subject to the normal appropriations and expenditure approval process applicable to all other funds. Finally, it is noted that extraordinary situations may arise inwhich the timing of external actions out of the City's control may require the use of the unassigned fund balance. The City Manager shall note these situations to the City Council as soon as the information is known. Amounts that can be used for specific purposes pursuant to constraints imposed by formal action of the City Council will be reported as committed fund balance. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. Existing resources in the fund t h a t have been specifically committed for use in satisfying contractual obligations will be reported as assigned fund balance. 3 Section 4. Other Committed Fund Balances. 4.1 Internal Service Funds.To ensure that current and future services or operations are not severely impacted by any economic slowdowns,emergencies,natural disasters or other unforeseen circumstances,it is the goal of the City Council to build and maintain an unassigned reserve in each Internal Service Fund listed below,of up to five percent (5%)of the annual Internal Service Fund appropriations,exclusive of any one- time appropriations.Any amount in excess of five percent (5%) will be returned to the paying Funds or used for one-time expenditures.This subsection only applies to the Information Technologies Internal Service Fund;Stores Internal Service Fund; Engineering Services Internal Service Fund;Fleet Maintenance Internal Service Fund; and Facilities Maintenance Internal Services Fund. 4.2 Group Health Plans. It is a goal of the City to maintain a fund balance in the group health plans to (1) pay any associated administrative costs and claims run-out based upon the most recent actuarial study in the event the plan ceases or a change in the third-party administrator is made; and to (2) hold a reserve for catastrophic claims equaling 10% of projected medical and prescription claims. 4.3 General Liability Fund.It is a goal of the City to maintain a fund balance in the General Liability Fund (1)to fund long-term liabilities,incurred but not reported expenses (IBNR),and a risk margin for the adverse development of claims as determined by the actuarial recommendation and reflected in the Comprehensive Annual Financial Report;(2)to provide additional protection against significant unexpected claims experience in the fiscal year as a catastrophic reserve equaling 25% of the average incurred costs of claims experience over the prior five-year period;and (3)to protect against significant cost increases in the fiscal year for purchased insurance coverage premiums equaling 25%of the cost for purchased insurance over the prior year. 4.4 Worker's Compensati on Fund. It is a goal of the City to maintain a fund balance in the Worker's Compensation Fund (1)to fund long-term liabilities,incurred but not reported expenses (IBNR),and a risk margin for the adverse development of claims as determined by the actuarial recommendation and reflected in the Comprehensive Annual Financial Report;and (2)to protect against significant unexpected claims experience in the fiscal year as a catastrophic reserve equaling 25%of the average of incurred costs of claims experience over the prior five-year period. 4.5 Enterprise Funds.To ensure that current and future services or operations are not severely impacted by any economic slowdowns,emergencies,natural disasters or other unforeseen circumstances,it is the goal of the City Council to build and maintain an unreserved fund balance in each of the Enterprise Funds of a maximum of twenty-five percent (25%) of the annual Enterprise Fund appropriations,exclusive of debt service and any one-time appropriations,and anything over that amount shall be designated for specific purpose(s).This subsection only applies to Water,Wastewater,Gas, Stormwater,Airport, and Marina fund balances. 4.6 Debt Service Reserve Fund. The City will strive to maintain a debt service fund balance for bonds, certificates of obligation, tax notes, and other debt instruments of at 4 least two percent (2%) of the annual debt service appropriation(s) for the fiscal year; provided, however, this requirement shall comply with the provision of Treasury Regulation 1.148-2(f) which limits the amount of reserve funds that may secure the payment of debt service on bonds. Section 5. Liabilitiesfor Other Post-Employment Benefits, Accrued Compensated Absences and Net Pension Liability.For financial reporting purposes, the City will record liabilities for Other Post-Employment Benefits, Accrued Compensated Absences and Net Pension Liability according to guidance of the Governmental Accounting Standards Board. These liabilities will be funded on a pay-as-you-go basis, and thus will not be included in the minimum fund balances of the affected funds. Section 6. Property Tax Rate for Operations and Maintenance.Each proposed annual budget shall be prepared assuming that the City will be adopting a tax rate necessary to be in compliance with Section 2 above. Full consideration will be given to achieving the "no new-revenue maintenance and operations tax rate" for maintenance and operations when assessed property values decrease, and full consideration will be given to maintaining the current tax rate when assessed properties values increase, as long as the tax rate does not exceed the "voter approval tax rate" (which is the rate that allows the City to raise the same amount of maintenance and operation revenue raised in the prior year, excluding new property, with a 3.5%increase.) Section 7. Funding Level from General Fund for Street Maintenance.City Council approved Resolution #029634 on September 18, 2012 to declare its intent to establish a street user fee for implementation in Fiscal Year 2013-2014. Section 4 of this resolution expressed an intent to preserve the funding level of the Street Department at the percentage of the Street Fund's budget in Fiscal Year 2012-2013 relative to the General Fund. Excluding a decrease in General Fund revenues, the percentage of the Street Fund's budget relative to the General Fund will neither go below that of Fiscal Year 2012-2013 nor go below the dollar equivalent if General Fund revenues increase. That funding level equates to 6.00% of General Fund revenue less grants from the annual adopted operating budget or $10,818,730, whichever is greater. Beginning in Fiscal Year 2015-2016, the funding level will be 6% of General Fund revenue less grants and industrial district revenue or $10,818,730, whichever is greater. Additionally, beginning in Fiscal Year 2015-2016, 5% of industrial district revenue will be transferred to the Street Maintenance Fund. Beginning in Fiscal Year 2018-2019, the funding level will be 6% of General Fund revenue less grants, industrial district revenue and any General Fund transfer to Residential Streets or $10,818,730, whichever is greater. Section 8. Funding Level from General Fund for Residential Street Reconstruction Fund.In order to develop a long-term funding mechanism for capital improvements relatedto residential/local streets, implement thefollowing: 5 1.Beginning in Fiscal Year 2015-2016, appropriate and transfer 5% of industrial district revenuetothe Residential Street Reconstruction Fund. B. At a Special City Election in November 2016 Corpus Christi voters voted to create a dedicated fund to be used solely for residential street reconstruction and the city council was authorized each year to levy, assess and collect a property tax not to exceed six cents ($0.06) per one hundred dollars ($100.00) of assessed value for the purpose of residential street reconstruction to be deposited in such fund. Said taxes shall be used solely for the purpose of residential street reconstruction, including associated architectural, engineering and utility costs, and shall be implemented gradually at a rate not to exceed two cents ($0.02) per one hundred dollars ($100.00) of assessed value per year. For the purposes of this provision, the term “reconstruction” is defined as removing all or a significant portion of the pavement material and replacing it with new or recycled materials. The dedicated fund established by this section may not be used for payment of debt service. The City Council approved two cents ($0.02) per one hundred dollars ($100.00) of assessed value for fiscal year 2018-2019 for the purpose of residential street reconstruction. Section 9. Funding of Texas Municipal Retirement System (TMRS) Contributions. The City reached the fully funded contribution rate for TMRS in January 2019.It is a goal of the City Council to maintain the fully funded contribution rate to TMRS to fund the general City employees' and sworn police officers' pension. Section 10. Priority of City Services.The City Council recognizes the need to provide public services which support the continued growth of the local economy and personal income growth to insure an adequate financial base for the future. Section 11. Operating Contingencies.The City Manager is directed to budget up to $500,000 per year as an operating contingency as part of General Fund expenditures in order to further insulate the General Fund unreserved fund balance from unforeseen circumstances. Up to 2% of annual appropriations for operating contingencies may be budgeted, as deemed necessary,in enterprise, internal service, and special revenue funds of the City. Section 12. Multi-year Budget Model.Whereas many of the City's fiscal goals require commitment and discipline beyond the one year considered within the City's fiscal year, the City will also consider adoption of business plans necessary for the accomplishment of City short term or long term goals. These business plans will be presented and recommended to the City Council in the proposed annual operating budget and shall be used for development of future budget recommendations as necessary to accomplish these goals. The City shall also maintain business plans and/or rate models for enterprise operations. Preparation of the annual budget will include model for years two and three, with specific revenue and expenditure assumptions and with respect to the debt horizon. Section 13. Cost Recovery.The City may recover costs in the General Fund by charging other funds for administrative costs incurred to support their operations. The City shall attempt to pursue and maintain a diversified and stable revenue stream for the General Fund in order to shelter finances from short term fluctuations in any one revenue source. In order to meet the requirements outlined herein, every effort will be made to base rates on a cost of service model, so costs incurred for certain services are paid by the population benefiting from such services. Section 14. Quarterly Financial Reporting and Monitoring.The City Manager shall 6 provide interim financial performance reports and updates to the City Council on a quarterly basis. These interim reports must include detailed year to date revenue and expenditure estimates, as well as explanations for major variances to budget. The format of the quarterly report must be relatively consistent with the adopted budget. Quarterly financial reports shall include a summary of fund balances for each fund and a statement regarding compliance with these financial policies, where applicable. Section 15. Use of Nonrecurring Revenue.The City shall endeavor to use nonrecurring revenue to fund one-time expenditures. Nonrecurring revenue may include items such as sale of fixed assets, court settlements, or revenue collection windfalls. Section 16. Debt Management.The City Manager shall adhere to the Debt Management Policy adopted by Resolution 028902 on December 14, 2010, and reaffirmed by Resolution 029321 on December 13,2011. Section 17. Capital Improvement Plans/Funding.The annual Capital Improvement Plan (CIP) shall follow a similar cycle as the Operating Budget. As part of the annual capital budget process, the City shall update its short and long-range capital improvement plans. Due to the limited amount of available funds, the CIP serves to establish a priority for the many necessary projects. Therefore, the CIP will be updated annually in order to incorporate the changing priorities, needs and funding sources. As part of a concerted effort to reduce debt levels and improve financial flexibility, the City shall pursue pay-as-you-go capital funding where possible. The CIP is a necessary tool in the capital planning process, and shall be organized as follows: A.ANNUAL CAPITAL BUDGET: This is the first year of the Short Range CIP and shall be fully funded. All approved projects must have corresponding funding resources identified by individual project. Projects added to the approved annual Capital Budget shall require City Council approval. B.SHORT RANGE CIP: A schedule of capital expenditures to be incurred over a three (3) year period to carry out the City's CIP program. The short range plan projects must have programmed funding with corresponding funding resources identified by individual project. Any projects that include projected increases to operating costs for programmed facilities will be notated. A review of all CIP encumbrances will be done annually. Any encumbrance that does not represent a true commitment will be liquidated. C.LONG RANGE CIP: The long range plan extends for an additional seven years beyond the short range, for a complete plan that includes ten years. The long range CIP projects must have realistic planned funding tied to the projects. Section 18. Expenditures.Within the limitation of public service needs, statutory requirements and contractual commitments expenditures included in the operating budget shall represent the most cost-efficient method to deliver services to the citizens of Corpus Christi. Efforts to·identify the most cost-efficient method of service delivery shall continue during the fiscal year after the operating budget is adopted and may be implemented during the fiscal year as necessary and of benefit to the public. Section 19. Line Item Budget review process.During the preparation of the City's operating budget,Citystaff shall perform a line item budget review of departmental budgets. 7 Section 20. A State Hotel Occupancy Tax (HOT) Fund.A state HOT Fund was created for the Fiscal Year (FY) 2015-16 budget as a result of the Texas 84th Legislature's (2015) House Bill (HB)1915 that allowed Corpus Christi and three other Texas cities to retain 2% of the state hotel occupancy taxes collected by the cities to be reinvested for beach maintenance and restoration. The expenditures in this Fund shall not be used to offset expenditures for Gulf Beach maintenance currently paid for out of the local HOT Fund. The funding for Gulf Beach maintenance in the local HOT Fund shall not fall below the lesser of $1,825,088 or 15% of HOT revenue (not including the Convention Expansion portion) budgeted. This amount will be in addition to any expenditures budgeted for Gulf Beach Maintenance in the State HOT Fund. Section 21. Drought Surcharge Exemption Fund.Beginning in Fiscal Year 2018-2019 The Drought Surcharge Exemption Fees collected from large-volume industrial customers pursuant to Ordinance 031533 shall be dedicated for development of a drought-resistant water supply and shall not be used for operation and maintenance costs of any water supply, treatment facility or distribution system. The Drought Surcharge Exemption Fees paid to the City will be accounted for and reserved in a separate Drought Surcharge Exemption Fund and used only for capital costs to develop and/or acquire an additional drought-resistant water supply including but not limited to, payment of debt for an allowable capital project. Section 22. Budget Controls. Budgetary compliance is an important tool in managing and controlling governmental activities, as well as ensuring conformance with the City’s budgetary limits. Budgetary controls, levels at which expenditures cannot legally exceed appropriated amounts, are established within individual funds. The City utilizes an encumbrance system of accounting as one mechanism to accomplish effective budgetary controls. Encumbrances at year end which represent a true commitment are generally appropriated as part of the following year’s budget. A closing appropriation Ordinance will be brought to the City Council with budget amendments by fund, resulting from prior year end encumbrances, approximately two months after year end. DATE:June 27, 2019 TO:Peter Zanoni, City Manager THROUGH:Constance P. Sanchez, Interim Assistant City Manager ConstanceP@cctexas.com 826-3227 FROM:Fred A. Segundo, Director of Aviation FredS@cctexas.com 289-0171 ext.1213 CAPTION: Ordinance accepting and appropriating $289,765.00 from the Federal Aviation Administration Grant and authorizing reimbursement of expenses for additional fencing, security cameras, and server upgrades/replacements within the airport terminal building as part of the Perimeter Fencing Project and amending the FY 2018-2019 Capital Budget. PURPOSE: The Federal Aviation Administration (FAA) funds major capital improvements at Corpus Christi International Airport (CCIA) through its Airport Improvement Program (AIP) grants. The FAA previously offered Grant 54 in the amount of $6,637,856.00 to the City of Corpus Christi to fund the Airport Operating Area Perimeter Fencing Project and related improvements and is now offering Amendment No.1 in the additional amount of $289,765.00 for additional improvements that were identified during the project. BACKGROUND AND FINDINGS: This is a joint FAA/City project with a respective 90/10 percent construction cost sharing. The original project included removal and replacement of approximately 9 miles of existing perimeter fencing that was installed in 1984. Replacement included high security fencing, new high-speed security gates and controls, concrete footings, wildlife barrier, driveways, fiber optics, electrical cables, and other miscellaneous improvements. In addition, new digital surveillance cameras were installed around the perimeter of the new fence and minor upgrades to the security system. Amendment No. 1 provides for additional upgrades to the security cameras/server and selected replacements within the airport terminal building. The need for additional improvements was identified during project construction and was presented to the FAA Program Manager for approval and additional funding. These upgrades have been completed using the Airport’s Capital Reserve Fund, and this action will reimburse the Airport with grant funding. Accepting and appropriating Federal Aviation Administration (FAA) grant amendment and authorizing reimbursement of expenses for additional fencing and security improvements at Corpus Christi International Airport. AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting July 23, 2019 Second Reading Ordinance for the City Council Meeting July 30, 2019 ALTERNATIVES: The only alternative would be for the additional project costs to be funded entirely from Airport funds. OTHER CONSIDERATIONS: Not Applicable CONFORMITY TO CITY POLICY: The project is consistent with Airport Master Plan. EMERGENCY / NON-EMERGENCY: Non-Emergency DEPARTMENTAL CLEARANCES: Legal Finance Management and Budget FINANCIAL IMPACT: Operating Revenue Capital Not applicable Fiscal Year: 2018-2019 Current Year Prior Years TOTALS Line Item Budget $0.00 $6,637,856.00 $6,637,856.00 Encumbered / Expended Amount $0.00 $0.00 $0.00 This item $289,765.00 $0.00 $289,765.00 BALANCE $289,765.00 $0.00 $6,927,621.00 Note: Grant 54 was issued to the City in 2016 in the amount of $6,637,856.00, and this amount was spent prior to FY 2018-19. Grant 54 Amendment No.1 noted in this agenda item is in the amount of $289,765.00, bringing Grant 54 to a grand total of $6,927,621.00. Funding Detail: Fund:3020 Airport CIP Fund Grants Organization/Activity: E152211543020C Mission Element:274 Airport Development Project # (CIP Only): E15221 Account:50910 RECOMMENDATION: Staff recommends approval of the Ordinance LIST OF SUPPORTING DOCUMENTS: Ordinance Grant 54 Amendment No. 1 Letter Ordinance accepting and appropriating $289,765.00 from the Federal Aviation Administration Grant and authorizing reimbursement of expenses for additional fencing, security cameras and server upgrades/replacements within the airport terminal building as part of the Perimeter Fencing Project and amending the FY2018-2019 Capital Budget. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Funds in the amount of $289,765 from the Federal Aviation Administration for Amendment No. 1 to Grant No. 3-48-0051-054-2016 are accepted and appropriated in the No. 3020 Airport Capital Improvement Fund for additional fencing, security cameras and server upgrades/replacements within the airport terminal building as part of the Perimeter Fencing Project; and are authorized to reimburse funds initially used for the project. SECTION 2. The FY2018-2019 Capital Budget adopted by Ordinance No. 031550 is amended by increasing revenues and expenditures by $289,765 each. The foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter ________________ Roland Barrera ________________Ben Molina ________________ Rudy Garza ________________Everett Roy ________________ Paulette M. Guajardo ________________Greg Smith ________________ Gil Hernandez ________________ The foregoing ordinance was read for the second time and passed finally on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter ________________ Roland Barrera ________________Ben Molina ________________ Rudy Garza ________________Everett Roy ________________ Paulette M. Guajardo ________________Greg Smith ________________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST:CITY OF CORPUS CHRISTI __________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor DATE:July 9, 2019 TO:Peter Zanoni, City Manager FROM:Esther Velazquez, Assistant to the City Manager EstherV@cctexas.com 361.826.3093 CAPTION: Ordinance authorizing lease agreement with SMG to allow use of streets bounded by Fitzgerald Street, N. Water Street, Resaca Street and Shoreline Blvd. and including portions of Bayfront Park located along Shoreline Blvd. between Resaca Street and Fitzgerald Street for the 2019 Coastal Bender event and related activities to be held on August 1 - 4, 2019, which requires SMG to pay all permit fees required for the event, estimated at $1,000.00. PURPOSE: Seeking City Council approval of a Lease Agreement for temporary street closures and closure of approximately 30% of the Bayfront Park during the 2019 Coastal Bender event at the American Bank Center. BACKGROUND AND FINDINGS: This will be the inaugural year for the 2019 Coastal Bender, which is a homegrown event created and developed by SMG. The Coastal Bender is a fishing tournament that includes other elements to maximize interest in and attendance of the event. The four-day event will include an array of content true to the Texas Gulf Coast including a welcome dinner and silent auction for tournament participants on Thursday, August 1, two youth fishing tournaments on Friday, August 2, an all day fishing tournament on Saturday, August 3 with five divisions (Bay, Kayak Bay, Offshore, Offshore Kayak and Beach/Surf), a closing brunch and winners award ceremony for tournament participants on Sunday, August 4. Other festival activities include a bar-b-que cookoff, outdoor expo (boats, fishing and hunting), and a concert. This event will take place August 1-4, 2019 and will attract 2019 Coastal Bender Lease Agreement AGENDA MEMORANDUM First Reading Ordinance for the City Council Meeting July 23, 2019 Second Reading Ordinance for the City Council Meeting July 30, 2019 people to the American Bank Center for a one-of-a-kind experience in Corpus Christi during the summer. SMG is working in partnership with Corpus Christi native Roger Creager, a well-known musician who is playing a key role in attracting artists, anglers, and fans to attend the event. The event name is being branded as ‘Roger Creager’s Coastal Bender.’ This event involves revenue sharing and use of the artist’s name in lieu of the typical guaranteed fee for the headliner. This structure limits risk by eliminating the fixed cost paying an artist to perform. The event will take place on Shoreline Boulevard, including the barge dock, outside the American Bank Center as well as inside the Arena. Activities listed for Thursday, August 1, 2019 on the Event Plan are for tournament registrants and are not open to the general public. We are not anticipating any negative impact from the partial closure of the Bayfront Park as the section being closed is the area that contains the currently inoperable water feature. Use of this portion of the park was approved by the Director of Parks and Recreation. A minimal general admission fee in the amount of $5 will be charged for entry into the event grounds resulting in increased attendance and exposure. There will be a separate $25 fee to attend the concert. The FY19 Adopted Budget includes $650,000 of Arena Marketing and Co-Promotion Funds for the purpose of offsetting event related expenses incurred in attracting business to the Arena. The Corpus Christi Business and Job Development Corporation approved $30,000 for the Coastal Bender event at their April 15, 2019 regular meeting. SMG recognizes Coastal Bender as a wonderful opportunity to give back to our community’s youth and has partnered with Driscoll Children’s Hospital, Ronald McDonald House and Hookspit Junior Anglers Association, an under privileged youth fishing group. The kids will participate in the event free of charge and the organizations will receive publicity and public education about their programs from the event ad campaigns. ALTERNATIVES: Do not approve event agreement. OTHER CONSIDERATIONS: None CONFORMITY TO CITY POLICY: City Council’s action is required for lease agreements in conjunction with public events. EMERGENCY / NON-EMERGENCY: Non-emergency DEPARTMENTAL CLEARANCES: Legal FINANCIAL IMPACT: X Operating □ Revenue □ Capital □ Not applicable Fiscal Year: 2018-2019 Current Year Line Item Budget $650,000 Encumbered / Expended Amount $219,000 This item $1,000 BALANCE $380,000 Expense Funding Detail: Fund:4710 Visitors Facility Organization/Activity: 13615 Arena-Marketing/Co-Promotion Mission Element:734 Tourism Project # (CIP Only): N/A Account:530500 Printing Advertising & PR Revenue Detail The permit fees will be deposited into the following accounts: $450 to Visitors Facility, Cultural Services, Special Events Permits: 4710-13710-888-302350 for Special Event Application Fee ($50) and the Special Event Permit Fee ($400) $550 to Streets, Traffic Engineering, Special Events Permits: 1041-12300-888-302350 for traffic engineering control plans RECOMMENDATION: Staff recommends approval of this agreement. LIST OF SUPPORTING DOCUMENTS: Ordinance Lease Agreement Event Plan Ordinance authorizing lease agreement with SMG to allow use of streets bounded by Fitzgerald Street, N. Water Street, Resaca Street and Shoreline Blvd. and including portions of Bayfront Park located along Shoreline Blvd. between Resaca Street and Fitzgerald Street for the 2019 Coastal Bender event and related activities to be held on August 1 - 4, 2019, which requires SMG to pay all permit fees required for the event, estimated at $1,000.00. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager or designee is authorized to execute a lease agreement with SMG for the use of City property for the 2019 Coastal Bender event and related activities. The Agreement allows use of portions of Bayfront Park located along Shoreline Blvd. between Fitzgerald Street to Resaca Street through the end of Shoreline Blvd. A copy of the Agreement is on file with the City Secretary. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter ______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________Michael Hunter ______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo ________________Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor DATE:July 23, 2019 TO:Peter Zanoni, City Manager FROM:Bill Mahaffey, Director of Gas Operations BillM@cctexas.com (361) 826-1801 Kim Baker, Director of Contracts and Procurement KimB2@cctexas.com (361) 826-3169 CAPTION: Ordinance appropriating $208,138.33 from the Fleet Fund Future Replacement balance; amending the FY2018-2019 operating budget adopted by Ordinance 031548 to increase expenditures; and approving the purchase of seven trucks from Silsbee Ford of Silsbee, Texas, via GoodBuy Purchasing Cooperative for a total amount not to exceed $208,138.33. PURPOSE: This item is to approve the purchase of seven trucks for the Gas Department. BACKGROUND AND FINDINGS: The Gas Department has a requirement to purchase seven trucks; one 2020 Ford F450 Crew Cab and six 2019 Ford F150 Regular Cab. All trucks are replacement units for vehicles that are past their expected service life of seven years. Two trucks are 12 years old and five over 16 years old. These units are frequently out of service due to costly repairs and three of these units have been removed from service. Contracts awarded through the GoodBuy Cooperative have been competitively procured, and in compliance with Texas local and state procurement requirements. ALTERNATIVES: N/A Purchase of Seven Trucks for Gas Department AGENDA MEMORANDUM First Reading for the City Council Meeting of July 23, 2019 Second Reading for the City Council Meeting of July 30, 2019 OTHER CONSIDERATIONS: N/A 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: Gas Operations FINANCIAL IMPACT: X Operating □ Revenue □Capital □ Not applicable Fiscal Year: 2018-2019 Current Year Future Years TOTALS Line Item Budget $8,071,021.11 $0.00 $8,071,021.11 Encumbered / Expended Amount $7,332,643.94 $0.00 $7,332,643.94 This item $208,138.33 $0.00 $208,138.33 BALANCE $530,238.84 $0.00 $530,238.84 Comments: Appropriating $208,138.33 from the Fleet Fund Future Replacement balance; amending the FY2018-2019 operating budget adopted by Ordinance 031548 to increase expenditures. Funding Detail: Fund:5110 Fleet Maintenance Service Organization/Activity:40120 Equipment Purchases - Fleet Mission Element:202 Maintain the Fleet Project # (CIP Only): N/A Account:550020 Vehicles and Machinery RECOMMENDATION: Staff recommends approval of the action as presented. LIST OF SUPPORTING DOCUMENTS: Price Sheet Ordinance appropriating $208,138.33 from the Fleet Fund Future Replacement balance; amending the FY2018-2019 operating budget adopted by Ordinance 031548 to increase expenditures; and approving the purchase of seven trucks from Silsbee Ford of Silsbee, Texas, via GoodBuy Purchasing Cooperative for a total amount not to exceed $208,138.33. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1.That funds in the amount of $208,138.33 are appropriated from the Fleet Fund Future Replacement Reserve and appropriated in the Equipment Purchase expenditure Org. 40120 in Fleet Fund No. 5110 for the purchase of seven trucks from Silsbee Ford. SECTION 2.That the FY2018-19 operating budget adopted by Ordinance No. 031548 is amended by increasing expenditures by $208,138.33. SECTION 3.That the City Manager, or designee, is authorized to execute all documents necessary to purchase seven trucks from Silsbee Ford of Silsbee, Texas, based on the cooperative purchasing agreement with GoodBuy Purchasing Cooperative, for a total amount not to exceed $208,138.33. That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________, 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo________________Greg Smith ______________ Gil Hernandez ________________ That the foregoing ordinance was read for the second time and passed finally on this the _____ day of __________ 2019, by the following vote: Joe McComb ________________Michael Hunter______________ Roland Barrera ________________Ben Molina ______________ Rudy Garza ________________Everett Roy ______________ Paulette M. Guajardo________________Greg Smith ______________ Gil Hernandez ________________ PASSED AND APPROVED on this the ______ day of _________________, 2019. ATTEST: _________________________________________________ Rebecca Huerta Joe McComb City Secretary Mayor City of Corpus Christi Contracts & Procurement Buyer: Cynthia Perez ITEM DESCRIPTION QUANTITY UNIT EXTENDED TOTAL 1 2020 Ford F450 Crew Cab Upgrade 1 $61,352.83 $61,352.83 2 2019 Ford F-150 Regular Cab 6 $24,464.25 $146,785.50 208,138.33$ Silsbee FordSilsbee, Texas Price Sheet Trucks for Gas Department Contract - Good buy 19-8F000 DATE:July 3, 2019 TO:Peter Zanoni, City Manager FROM:County Judge Barbara Canales, Nueces County Maggie.Turner@nuecesco.com 361-888-0264 OUTSIDE PRESENTER(S): Name Title/Position Organization 1.Barbara Canales County Judge Nueces County BACKGROUND: County Judge Barbara Canales is the chair of the Complete Count Committee that is responsible for ensuring an accurate US Census Count for Nueces county, including the City of Corpus Christi. The Census is important because it determines everything from eligibility for federal funding to elected representation. A nonprofit group Nueces Together has been formed to work with the Complete Count Committee to develop marketing and outreach programs to ensure an accurate count. Judge Canales is coming before Council to officially request participation from the City of Corpus Christi in the Nueces Together effort to ensure robust participation in the 2020 Census. LIST OF SUPPORTING DOCUMENTS: PowerPoint – 2020 Census and Nueces Together AGENDA MEMORANDUM City Council Meeting of July 23, 2019 NUECES TOGETHER A bipartisan non-profit 501 c(3) formed to assist in getting a complete and accurate count of the Nueces County population in the 2020 Census. The Census is Critical •Mandated by the United States Constitution, Article I, Section 2 to provide for “fair and informed governance”. •Every ten years since 1790. •Next census- April 1, 2020. Census Counts Determine Dollars •The federal tax money we send to Washington comes back to Texas in accordance with Census calculations. •Billions of dollars in federal aid depend on the accuracy of the Census including support for health care, housing, transportation and other infrastructure. •Being undercounted by even one percent in 2020 could result in significant loss in federal funding for Texas, leaving the burden of funding services to state and local governments. •According to estimates, each person in Nueces County represents between $1,500 to $1,900 in federal aid. The Census Determines Representation •The Census determines the number of representatives Texas will have in Congress and the number of electoral votes in presidential elections. •Some experts say Texas could gain up to three new congressional seats after the 2020 Census. The Census = Economic Opportunity •Businesses are the biggest consumers of Census data. •They use population and demographic data to determine where to set up shop and expand. •A complete and accurate count of Nueces County will make us more competitive in attracting new industries to locate here creating jobs and investing in the local economy. Promoting Census 2020 Takes $ •More than half of the other states have allocated funds to promote an accurate Census. •California has allocated $90 million. The state of New York recently allocated $40 million while the state of Georgia, much smaller and more conservative, has allocated $ 2 million. •The Texas Legislature convened without funding Census 2020 outreach. •Texas cities and counties are funding public outreach campaigns. •Houston recently approved $650,000. Dallas has a fundraising goal of 2.5 million. U.S. Census Bureau –Online vs. Field For the first time ever, the Census will be online, in addition to the traditional mail forms. While this should increase participation, it remains untested on hard to count communities. The Census Bureau’s budget for online participation means there will be fewer workers in the field to follow up with the no response rates. The U.S. Census Bureau Recommends Complete Count Committees •The Census Bureau recommends local communities develop Complete Count Committees to help identify hard to count populations and figure out how to reach them effectively. •Complete Count Committees will consist of business leaders, faith leaders, elected officials and representatives from social services agencies. •Nueces Together staff have begun to recruit members for the Nueces County Complete Count Committee. Nueces Together will serve as staff support to implement outreach strategies recommended by the Committee. Hard to Count Populations •Young children •College students •County jail inmates •Homeless •Rural •Undocumented residents Nueces Together Outreach Plan •Nueces Together will serve as the hub of all census-related information and outreach in both English and Spanish. •The public engagement campaign includes paid advertising, billboards, radio and TV public service announcements, social media, and outreach to the press. •Once the 2020 official count begins Nueces Together will launch a full ground campaign with trained personnel assisting residents in completing the census in both traditional and online methods. This will include two countywide rounds of in person outreach. Nueces Together Will Not Have Data •It is against the law for U.S. Census workers, or anyone else, to have access to Census data. •The Nueces Together field workers will assist people by directing them to the legal and confidential methods provided to participate in the Census. •Nueces Together will keep a tally of how many residents they have reached on the phone or in person. Timeline •June 2019 – September 2019 •Engage and educate local leaders, partners and communities to participate in the Complete Count Committee (CCC). Identify tracts where there may be hard to count populations including nursing homes, transitory camps, military bases, RV parks, shelters, dorms and remote rural communities •Produce communication materials including U.S. Census public information packets, social media platforms, web-based outreach tools and press kits. •September 2019-December 2019 -Execute public engagement strategy promoting 2020 census in historically hard to count areas. •January 2020 –Begin recruiting and training field staff to help residents of Nueces County complete surveys. •March 23, 2020- Self responses can begin. •April 1, 2020 – Census Day- the census is based on where you reside as of April 1. •March 2020 – July 2020 -Call to action for residents to respond to census. Field officers go door to door in hard to count areas. •May 2020 –Begin to contact households that have not responded. Target universities before students leave for the summer. •July 31, 2020 –Area census offices close.