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HomeMy WebLinkAboutC2008-545 - 11/11/2008 - ApprovedAGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND TAMU-CC FOR DEVELOPMENT OF FACILITIES FOR THE BACHELOR OF SCIENCE IN MECHANICAL ENGINEERING PROGRAM This Agreement for ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and Texas A & M University - Corpus Christi ("TAMU-CC"), a member of The Texas A&M University System, an agency of the State of Texas. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas Revised Civil Statutes (Development Corporation Act of 1979) empowered local communities with the ability to adopt an optional local sales and use tax as a means of improving the economic health and prosperity of their citizens; WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City') passed Proposition 2, New and Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the promotion and development of new and expanded business enterprises at the rate ofone-eighth of one percent to be imposed for 15 years; WHEREAS, the ballot measure authorized the use of the funds to make grants to organizations to provide training and education to insure the knowledge and skills required for the jobs of the future are in place; WHEREAS, the Development Corporation Act of 1979 authorizes the use of funds for primary job training facilities for use by institutions of higher education; WHEREAS, the 1/8th cent sales tax authorized by passage of Proposition 2 was subsequently enacted by the City Council and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corpus Christi Business and Job Development Corporation Board; WHEREAS, the Corpus Christi Business and Job Development Corporation exists for the purposes of encouraging and assisting entities in the creation of jobs for the citizens of Corpus Christi, Texas; WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all programs and expenditures of the corporation; WHEREAS, TAMU-CC has been authorized to offer an undergraduate degree in mechanical engineering ("BSME") by the Texas Higher Education Coordinating Board; WHEREAS, the Board has determined that it is in the best interests of the citizens of Corpus Christi, Texas that business development funds be provided to TAMU-CC, through this contract nth TAMU-CC, to be used by TAMU-CC for expenses related to 2008-545 ;for the BSME program, including retrofitting and outfitting the Res. 027934 11/11/OS Page 1 of 8 CCBJDC(4A Board) .ME Agreement Final laboratories currently used in TAMU-CC's mechanical engineering technology and electrical engineering technology programs. In consideration of the covenants, promises, and conditions stated in this Agreement, Corporation and TAMU-CC agree as follows: 1. Effective Date. The effective date of this Agreement ("Effective Date") is the latest date that either party executes this Agreement. 2. Term. The term of this Agreement is for three years from August 1, 2008, through July 31, 2011. This agreement may be extended by mutual agreement, in writing, for up to two additional one year terms, contingent upon annual appropriation of funds and approval of the City Council. 3. The Corporation grants TAMU-CC $1,000,000.00 for development of facilities for the BSME program, including retrofitting and outfitting the laboratories currently used in TAMU-CC's mechanical engineering technology and electrical engineering technology programs and also the purchase of any necessary equipment. a. The specific items that are funded by this grant are described in Exhibit A, which is attached to and incorporated into this agreement. b. The Corporation will reimburse TAMU-CC for authorized expenditures related to the retrofitting and outfitting of the engineering laboratories. 4. Buy Local Provision. a. TAMU-CC agrees to use its best efforts to give preference and priority to local manufacturers, suppliers, contractors, and labor, except where not reasonably possible to do so without added expense, substantial inconvenience, or sacrifice in operating efficiency. b. For the purposes of this section, the term "local" as used to describe manufacturers, suppliers, contractors, and labor includes firms, businesses, and persons who reside in or maintain an office within a 50- mile radius of Nueces County. 5. Warranties. TAMU-CC warrants and represents to Corporation the following: a. TAMU-CC is a state institution of higher education, duly organized, validly existing, and in good standing under the laws of the State of Texas, has all corporate power and authority to carryon its business as presently conducted in Corpus Christi, Texas. b. TAMU-CC has the authority to enter into and perform, and will perform, the terms of this Agreement. Page 2 of 8 CHy of CC CAE.NO 1534.110408 BSME Agreement Final c. TAMU-CC has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that the funds granted in this Agreement must be utilized solely for purposes authorized under State law and by the terms of this Agreement. d. If an audit determines that the funds were not used for authorized purposes, TAMU-CC agrees to reimburse Corporation for the sums of money spent for purposes not authorized bylaw within 30 days written notice requesting reimbursement. e. The parties executing this Agreement on behalf of TAMU-CC are duly authorized to execute this Agreement on behalf of TAMU-CC. 6. Compliance with Laws. TAMU-CC shall observe and obey all applicable laws, ordinances, regulations, and rules of the Federal, State, county, and city governments. 7. Non-Discrimination. TAMU-CC covenants and agrees that TAMU-CC will not discriminate nor permit discrimination against any person or group of persons, with regard to employment and the provision of services at, on, or in the Facility, on the grounds of race, religion, national origin, marital status, sex, age, disability, or in any manner prohibited by the laws of the United States or the State of Texas. 8. Force Majeure. If the Corporation or TAMU-CC are prevented, wholly or in part, from fulfilling its obligations under this Agreement by reason of any act of God, unavoidable accident, acts of enemies, fires, floods, governmental restraint or regulation, other causes of force majeure, or by reason of circumstances beyond its control, then the obligations of the Corporation or TAMU-CC are temporarily suspended during continuation of the force majeure. If either party's obligation is affected by any of the causes of force majeure, the party affected shall promptly notify the other party in writing, giving full particulars of the force majeure as soon as possible after the occurrence of the cause or causes relied upon. 9. Assignment. TAMU-CC may not assign all or any part of its rights, privileges, or duties under this Agreement without the prior written approval of the Corporation and City. Any attempted assignment without approval is void, and constitutes a breach of this Agreement. 10. Indemnity. To the extent authorized by law, TAMU-CC covenants to fully indemnify, save, and hold harmless the Corporation, the City, their respective ofFcers, employees, and agents ("Indemnifees") against all liability, damage, loss, claims demands, and actions of any kind on account of personal injuries (including, without limiting the foregoing, workers' compensation and death claims), or property loss or damage of any kind, which arise out of or are in any manner connected with, or are claimed to arise out of or be in any manner connected with TAMU-CC activities conducted under or incidental to Page 3 of 8 Cily of CC CAE.NO 1534.110408 BSME Agreement Final this Agreement, including any injury, loss or damage caused by the sole or contributory negligence of any or all of the Indemnitees. TAMU-CC must, at its own expense, investigate all those claims and demands, attend to their settlement or other disposition, defend all actions based on those claims and demands with counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other cost and expenses of any kind arising from the liability, damage, loss, claims, demands, or actions. 11. Events of Default. The following events constitute a default of this Agreement: a. Failure of TAMU-CC to substantially comply with of the material requirements, obligations, duties, terms, conditions, or warranties of this Agreement. b. The Corporation or City reasonably determines that any significant representation or warranty on behalf of TAMU-CC contained in this Agreement or in any financial statement, certificate, report, or opinion submitted to the Corporation in connection with this Agreement was misleading in any material respect when made; c. Any judgment is assessed against TAMU-CC or any attachment or other levy against the property of TAMU-CC with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. TAMU-CC makes an assignment for the benefit of creditors. e. TAMU-CC files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes owed by TAMU-CC become delinquent, and TAMU-CC fails to timely and properly follow the legal procedures for protest or contest. g. TAMU-CC changes the general character of business as conducted of the date this Agreement is approved by the Corporation. 12. Notice of Default. Should the Corporation or City determine that TAMU-CC is in default according to the terms of this Agreement, the Corporation or City shall notify TAMU-CC in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for TAMU-CC to cure the event of default. 13. Results of Uncured Default. After exhausting good faith attempts to address any default during the cure Period, and taking into account any extenuating circumstances that might have occurred through no fault of TAMU-CC, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period. Page 4 of 8 CRy of CC CAE.NO 1534.110408 BSME Agreement Final a. TAMU-CC shall repay within 30 days of written notice requesting repayment all funds paid by Corporation under this Agreement that specifically relate to the uncured event of default and that have not been spent or encumbered for expenses related to the specific items described in Exhibit "A." b. TAMU-CC shall pay Corporation reasonable attorney fees and costs of court to collect amounts due to Corporation~to the extent authorized by law. c. The Corporation shall have no further obligations to TAMU-CC under this Agreement . d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 14. No Waiver. a. No waiver of any covenantor condition, or the breach of any covenant or condition of this Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Agreement. b. No waiver of any covenantor condition, or the breach of any covenant or condition of this Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Agreement. c. Any waiver or indulgence of TAMU-CC' default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time TAMU-CC is in default in any of its conditions or covenants of this Agreement, the failure on the part of the Corporation to promptly avail itself of the rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the rights or remedies or elect to terminate this Agreement on account of the default. 15. TAMU-CC specifically agrees that Corporation shall only be liable to TAMU-CC for the actual amount of the money grants to be conveyed to TAMU-CC, and shall not be liable to TAMU-CC for any actual or consequential damages, direct or indirect, interest, attorney fees, or cost of court for any act of default by Corporation under the terms of this agreement, to the extent authorized by law. Payment by Corporation is strictly limited to those funds so allocated, budgeted, and collected solely during the grant term of this agreement, being August 1, 2008, through July 31, 2011. Corporation shall use its best efforts to anticipate economic conditions and to budget accordingly. However, it is further understood and agreed that, should the actual total sales tax revenue collected for any one year be less than the total amount of grants to be paid to all contracting parties with Corporation for that year, then in that event, all contracting Page 5 of 8 C@y of CC CAE.NO 1534.110408 BSME Agreement Final parties shall receive only their pro rata share of the available sales tax revenue for that year, less Corporation's customary and usual costs and expenses, as compared to each contracting parties' grant amount for that year, and Corporation shall not be liable to for any deficiency at that time or at any time in the future. In this event, Corporation will provide all supporting documentation, as requested. Payments to be made shall also require a written request from TAMU-CC to be accompanied by all necessary supporting documentation. 16. Notices. a. Any required written notices shall be sent mailed, certified mail, postage prepaid, addressed as follows: TAMU-CC: Texas A&M University-Corpus Christi 6300 Ocean Drive, Unit 5731 Corpus Christi, Texas 78412-5731 Attn: Purchasing Director Corporation: City of Corpus Christi Business and Job Development Corporation Attn.: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 b. A copy of all notices and correspondence must be sent the City at the following address: City of Corpus Christi Attn.:City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 17. Amendments or Modifications. No amendments or modifications to this Agreement may be made, nor any provision waived, unless in writing signed by a person duly authorized to sign agreements on behalf of each party. 18. Relationship of Parties. In performing this Agreement, both the Corporation and TAMU-CC will actin an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose. Page 6 of 8 City of CC CAE.NO 1534.110408 BSME Agreement Final 19. Captions. The captions in this Agreement are for convenience only and are not a part of this Agreement. The captions do not in any way limit or amplify the terms and provisions of this Agreement. 20. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Agreement or the application of this Agreement to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected by the law or judgment, for it is the definite intent of the parties to this Agreement that every section, paragraph, subdivision, clause, provision, phrase, or word of this Agreement be given full force and effect for its purpose. b. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Agreement, then the remainder of this Agreement is not affected by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Agreement automatically. 21. Venue. Venue for any legal action related to this Agreement is in Nueces County, Texas. 22. Sole Agreement. This Agreement constitutes the sole agreement between Corporation and TAMU-CC. Any prior agreements, promises, negotiations, or representations, verbal or otherwise, not expressly stated in this Agreement, are of no force and effect. 23. Survival of terms of agreement and obligations of parties. The terms of this agreement and the obligation of the parties relating to Section 13 survives until compliant. Page 7 of 8 City of CC CAE.NO 1534.110408 BSME Agreement Final Corpus Christi Business 8s Job Development Corporation By: Eloy Date: ~~/{~' ~~ Attest: By: G Armando Chapa Assistant Secretary Texas A8~M University-Corpus Christi By: i~s~!r.~~- ~ lavius Killebrew President Date: ~ ~ U THE STATE OF TEXAS COUNTY OF NUECES ~~e S. ~ ~ 3 AUTHORIZED er eoulra~. Ill 08' 8EGtETARr This instrument was acknowledged before me on A ~ , 200, by for TAMU-CC, a Texas non-profit corporation, member of The Texa A&M University System, an agency of the State of Texas, on behalf of the university. Q!X Nota Pu lic. State of Texas r r fo"'!~ MARY E. GON2ALE2 ~ t ~ ~ Notary PuMlc, Stete of Tsxae ~` .h~y My Commlaabn Exgree Petxuary 24, solo NOTARY WRHOUI BONA Page 8 of 8 CRy of CC CAE.NO 1534.110408 BSME Agreement Final .•~~... ... vie,wiw~,-, ,.,,vm~ uw Nage ~~ Exhibit A September 8, 2008 Corpus Christi Business and Job Development Corporation 1201 Leopard Corpus Christi, Texas 78401 Dear Corporation Members: Thank you for your consideretion of this proposal. i am wdting on behalf of Texas A&M University-Corpus Christi to request one million dollars in funding from the Corpus Christi Business and Job Development Corporation to assist in the establishment of an undergraduate degree in mechanical engineering (BSME) at the university. The need for additional engineers statewide and locally, is well documented; please see the attached "Needs Statement " Additionally, a synopsis of the university's proposed program Is also attached; please see "Proposed Degree Program." The establishment of the Bachelor of Science in Mechanical Engineering Degree at TAMUCC will benefit the city by: *Addressing the lack of a trained workforce, thus assisting with new business recruitment to the city. *Provlding for local hiring of educated, skilled employees by existing industries, thus Increasing their capability and capacity; i.e., It will be easier for the local economy to find qualified personnel. *Enhancing the retention of employees because they are educated locally, and already have made a commitment to Corpus Christi. *Provlding qualffied candidates for many of the 400-450 engineering jobs Coastal Bend Workforce Development anticipates by 2014. *Increasing the number of local highly compensated positions; the starting salary of BSME graduates is $75,000 to $80,000 par year with estimated annual Increases of 5% to 10% per year. 'Providing for four additional university faculty (annual salaries of $100,000 to $120,000 each) and one staff posffion (annual salary of $40,000) over a four year period. 25 ~ .. _ .. ~....,..~,.o ,.....a,,. ~ .,..,,. Na_ e z *Providing a cumulative total of 122 students over a flue year period, with increases as the program becomes well established. *Bringing additional student tuition, as well as state dollars through student credit hour revenue, to the university. *Assisting local businesses through financial/spending and personal contributions of increased numbers of faculty, staff, and students. 'Impacting the local economy by approximately $15 million by the end of the first five years of the program. The funds we are requesting from the Business and Job Development Corporation will be used to retrofit and properly outfit with equipment and furnishings, the laboratories currently used in our mechanical engineering technology and electrical engineering technology programs. Additionally, it will be used to purchase computer hardware and software necessary In the teaching of the BSME program. It will also provide student and faculty/staff support as we recruit these Individuals to Taxas A&M University- Corpus Christi. We anticipate the flue year cumulative total of these purchases to be $1,256,000. The one million dollars requested may be paid over a period of up to three years. A suggested payment schedule is $500,000 payable on or before December 31, 2008; $250,000 payable on or before December 31, 2009 and $250,000 payable on or before December 31, 2010. However, I would request that your written response to this proposal and confirmation of your financial commitment be received by me not later than !November i5, 2008. I look forward to meeting with you again on September 15". On behalf of the Texas A&M University-Corpus Christi thank you for your consideration of this proposal. Very truly yours, Flavius C. Killebrew, PhD President and CEO Attachments KWS 28 a ma yauauo,v , n,nvt.~.-n uoal iui nennuum NUUIUIII for a tie Ba Yrp ram tlAlVlt-IV880S JIffiemenl 3 AOC Pe B 7 ' l TEXAS A&M UNIVERSITY-CORPUS CHRISTI Needs Statement Bachelor of Science in Mechanical Engineering (B.S.M.E) Texas • To maintain and strengthen Texas' position in energy, aerospace, automotive, medical, marine systems and other industries, as well as emerging technologies in biotechnology, materials, nanotechnology, fuel cells and other types of green energy industries, the state must have an adequate and continuous supply of new ME graduates. • The Perryman Group in its 2007 report, The Potential Impact of an Initlatlve to increase the Poo! of Engineering Graduates on Business Activity in Texas, has documented, quantitatively, the demand for engineers both nationally and in Texas. The report conclusively ties gains ih economic activity in Texas to greater pool of engineers available. • Texas lags behind the major U.S. industrial states in the number of accredited ME programs per capita. • Texas has only about two-thirds (213) of BS degree production in Mechanical ' \ Engineering compared to the national average. ~ ) • Texas universities need to produce more graduates because International i competition for high-tech Industries need to be insulated from the future ~ uncertainty of international politics by having access to a guaranteed supply of j new ME graduates. Corpus ChNsti • The large Industrial complex in the Corpus Christi area provides significant job opportunities for mechanical engineering graduates. The demand for additional engineers at the local state, and national levels is well documented. There are more than thirty large businesses in the Coastal Bend region that employ mechanical engineers. Most of these companies have had difficulty hiring engineers and also retaining them longer than five years. • Local leaders assert that a substantial problem is the absence of engineering programs in Corpus Christi to support local Industries. The nature of supporting operations has changed dramatically over the years becoming more technically demanding and requiring skilled personnel with a high level of educational KNlS 9/tt/OS 27 . nma •.auaua~u - i r~iwuL.~,-rcnyunsc [ar rrenmma numon[ rof a u6 fee rro rem tlSMt:-Neetls statement~3 .tloC Page~2, 28 uma ua4a~rero - ihmuw-rcequest ror rreumina Autnon for a Uearee Pro ram BSME Pro osed D ree Pro ram Pa e 1 TEXAS A&M UNIVERSITY-CORPUS CHRISTI Proposed Decree Program Bachelor of Science in Mechanical Engineering (B.S.M.E) • Last year 552 potential students specifically Inquired about engineering programs at TAMU-CC even though we did not have such a program. • To a substantial extent, the support coursework and infrastructure for a new B.S.M.E. program is In place as a result of our current programs in mechanical engineering technology, electrical engineering technology, and geographic information sciences all of which are ABET accredited. • It is our Intent to Include a cooperative education component that Involves afull- time internship in industry. This type of curriculum is patterned after recent recommenda0ons of the National Academy of Engineering. • The ME curriculum will feature a strong "hands-on" experience with particular attention on teamwork, communication skills, and innovation. The elm is to produce mechanical engineers who are not only competent problem solvers but also ethical, responsible, and well-rounded citizens, poised to become community leaders in their respective fields. The graduates of the program would be qualified to become professional engineers and also to pursue graduate study. • The ME program will provide engineers to support and provide expertise for industries and related businesses In the Gulf of Mexico. • Graduates with preparation in both ME and business studies will find rewarding opportunities in a wide variety of positions, Including project management, plant supervision, and process engineering. • TAMU-CC's ME program will emphasize the mechanical systems that apply to manufacturing, energy and related fields. • It will be designed on a flue-year schedule involving a cooperative educational experience whereby the students In the latter part of their studies have periodic full-time work experiences in their area of interest with participating industries and businesses. • The proposed ME program is not competing with nor unnecessarily duplicating other programs within the State or other Institutions in the nation because it specifically targets unique requirements of the 400,000 residents and Part Industries of the Corpus-Christi metropolitan statistical area. l KWS 9/8108 29 ~rmayc.au~uero - ~ ruwu~,i.-ne~uesc ror rreummary_HU~~orny rory_s~-= a use r~eez rro~ram [s~mr-rroposea Ue~~ree Program ..Pale 2 .,...~,.yW - 30 h inns a,avanaw- ~nmvu~.-nn uns~ wi nannnnar eiumont ror a ue ree rr09ram rs~wit rro osetl Ue ree Yro ram-...;P3~ Many of the courses needed for the first two plus years of the mechanical engineering curcicula currently exist or can be easily modified from current courses. This is because the university's core curriculum is in place, and the initial (lower division) engineering courses either exist of can be derived from existing courses. Additionally, a number of the upper level courses needed for mechanical engineering also exist or can be modified from existing courses. Ths incremental cost involving additional faculty will be partially covered by increased enrollments. Texas A&M University-Corpus Christi has eight laboratories that are associated with the existing engineering technology programs. Most of these facilities can be converted Into associated engineering laboratories with the proper equipment complement. Thus, over the immediate future, adequate space should be available to initiate the mechanical engineering program. • More specialized equipment will be needed to have state-ot-the-art laboratories to support the ME academic program. KWS 9/8/08 31