HomeMy WebLinkAboutC2010-379 - 10/12/2010 - ApprovedSERVICE ACaREEMENT
THE STATE OF TEXAS §
§ fCNO~N ALL SY THESE PRESENTS
COUNTY OF NUECES §
This Service Agreement ("Agreement") is executed by and between the City of Corpus
Christi, Texas, a municipal corporation ("City") anal the Corpus Christi Regional
Economic Development Corporation, a Texas nonprofit corporation organized for the
purpose of promoting economic development of the Carpus Christi area ("CCREDC"),
~. ®escription of Services. CCREDC agrees to provide professional services to
manage the City's economic development program, including performing the functions
previously performed by the City`s Economic Development Department.
(a) The functions of the City's Economic Development Department, as described
in the City's Incentive Policies 2009-2011, are enumerated in Exhibit A, which is
attached to and incorporated into this Agreement. Exhibit A designates which
functions must be performed by CCREDC under Phis Agreement to the
satisfaction of the City, and those reserved to City Departments.
(b) Exhibit B, which is attached to and incorporated into this Agreement,
describes the tales of CCREDC and various City departments for those functions
that are to be performed in whole or in part by CCREDC.
(c) The City will provide an office for the use of CCREDC's employees at City
Hall, The office will be equipped with furniture, a telephone, computer, utilities,
and access to the City's GroupWise email system,
(d) CCREDC will staff the office as needed. The City Manager will determine
when staffing is needed.
2. Records. CCREDC agrees to record the revenues received from the City for
economic development services as a portion of its general revenues on its books of
account. CCREDC agrees to record all of its revenues and expenditures in financial
statements prepared in accordance with generally accepted accounting principles,
which financial statements shat[ be made available to the City Manager or designee
upon request.
3. Reports. Quarterly on dates designated by the City Manager, CCREDC shall
furnish to the City Manager a detailed written performance report of its economic
development services and activities performed under this Agreement that refilects
overall activity, meetings, contacts, and other activities conducted by CCREDC, such
reports are to include such data as may be reasonably required by the City. Any
communications or contacts which are of a confidential nature shall be limited to a
general description only. The City Manager will schedule and approve presentations by
the CCREDC to the City Council.
2010-379 Page 1 of 5
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10~12~1~ S AGREEMENT 10012010
CCREDC (EDC) ~~~
,~ -~
~~.
4. Compensation. The City agrees that for the economic development services
performed by CCREDC, the City shall pay to CCREDC the sum of X125,000 far the
initial one-year period covered by this Agreement, and thereafter that amount set by the
City in its annual budget each year fog compensation under this Agreement. The fees
and expenses due for economic development services under this Agreement shall be
payabfe on a quarterly basis, at the start of each quarter.
5. Pre-payment Review. Prior to issuing any payment, City reserves the right to
request and receive sufficient information from CCREDC to ensure that CCREDC
meets the requirements of this Agreement.
General Provisions
C. Supplemental Agreement. This Agreement supplements, but is separate and
distinct from, the Consulting Services Agreement between the parties, last executed on
August 22, 2008, and the Memorandum of Understanding, dated December 13, 2005.
Nothing in this Agreement, the Consulting Services Agreement, or Memorandum of
Understanding prevents the City from assuming responsibility for the administration of
its economic development functions.
7, Contracts. The City and CCREDC agree that in no event shall the City be liable for
any contracts made by CGREDC with any person, firm, corporation, association or
governmental body.
8. Non-liability. The City and CCREDC agree that in no event shat] the City be liable
#or any damages, injuries, or losses charged to or adjudged against CCREDC arising
from its operations, or the use or maintenance of its facilities.
9. Annual Appropriations. The parties mutually agree and understand that funding
under this Agreement is subject to annual appropriations by the City Council and that
each fiscal year's funding must be included in the budget for that year and is not
effective until so approved by the City Council.
10. City Corporations. Nothing is this agreement infringes on the duties and
obligations of any corporation or political entity created or managed by the City, or the
City Council's oversight role or responsibilities for the corporations or political entities
that may be involved in economic development related activities.
11. Term. The term of this Agreement shall commence as of August 1, 2010, and it
shall continue until July 31, 2011, subject to earlier termination as provided herein, and
subject to renewal automatically on an annual basis, unless either party terminates its
participation by giving written notice to the other party at feast thirty days before the end
of each annual term.
12. Termination. Either party may terminate this Agreement at any time for any
reason by giving thirty days prior written notice to the other party. Upon early
termination by either party, the City is no longer obligated to compensate CCREDC or
make any additional quarterly payments to CCREDC. CCREDC will refund the portion
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CCREDC CONSULTING SERVICES AGREEMENT 10012010
of any advance quarterly payment received from the City related to services after the
effective date of the termination of this Agreement.
13. Change of Name. GCREDC specifically reserves the right to change its name as a
corporate entity and do business under one or more assumed names in compliance
with the laws of the State of Texas. No such change of name or use of additional
names shall be deemed a modification of this Agreement. CCREDG shall promptly
notify City of any such change of name.
~ 4. Employees.
(a} As a result of this Agreement, the City will conduct a reduction in force ("R11="}
and eliminate the City's Economic Development Manager position, and the
incumbent in that position will be afforded the individual's rights under the City's
R1F polfCfeS.
{b} CCREDG as a condition of this Agreement, will offer the City's current
Economic Development Manager employment with CCREDG, at a salary
comparable to the salary currently being provided by the City and at the current
benefit package currently being offered to all CCREDG employees. Furthermore,
CCREDG will not, prior to the first anniversary of this Agreement, re-assign the
City's former Economic Development Manager, without the prior consent of City,
{c) CCREDG has complete and absolute discretion and authority with respect to
the functions, qualifications, other terms and conditions relating to its employees,
{d) CCREDG shall reimburse the City for all salary, compensation, and benefits
paid by the City to or on behalf of the City's current Economic Development
Manager subsequent to August 1, 2010, including, but limited to, salary,
contributions to the Texas Municipal Retirement System, basic life insurance,
and long term disability insurance.
15. Equal Opportunity Employer. CCREDG agrees to abide by the equal opportunity
requirements of the Gity for CCREDC's employees and shall:
(a) Treat all applicants and employees without discrimination as to race, color,
religion, sex, national origin or disability; and
(b) Identify itself as an "equal opportunity employer" in all help-wanted
advertising or requests.
16. City Economic t]errelopment Liaison. CCREDG will liaison directly with the City
Manager on economic development proposals. The City Manager will designate an
official to serve as the liaison between the CCREDG and the City staff on process and
procedural issues, including, but not limited to preparation of various agendas, agenda
items, and public notices.
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CCREDG CONSULTING SERVICES AGREEMENT 10012010
17. No#ices. Ail notices, requests, ar other communications related to this Agreement
shat[ be made in writing and may be given by:
(a) Depositing same in the United States Mail, postage prepaid, certified, return
receipt requested, addressed as set forth in this paragraph; or
(b) Delivering the same to the party to be notified. Notice given in accordance
with (a) hereof shall be effective upon deposit in the United States mail. The
notice addresses of the pasties shall, until changed as provided herein, be as
follows:
City: City of Corpus Christi, Texas
~ 201 Leopard Street
P.Q. Bax 9277
Carpus Christi, Texas 78-69
Attn: City Manager
CCREDC: Corpus Ghristi Regional Economic
Development Corporation
800 N. Shoreline Bivd.
Suite 1300 S
Corpus Christi, Texas 7$401
Attn: President
18. Severability. If for any reason any section, paragraph, subdivision, clause, phrase,
word or provision of this Agreement shall be held invalid or unconstitutional by final
judgment of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word or provision of this Agreement, for it is the
definite intent of the parties that every section, paragraph, subdivision, clause, phrase,
ward or provision hereof be given full force and effect far its purpose.
19. Lawful Service. The parties mutually agree that the services provided under this
Agreement are lawfully authorized services which the City is purchasing from CCREDC.
2Q. Modifications and Counterparts. This Agreement may not. be assigned by
CCREDC without prior written approval of City. No amendments, modifications or other
changes to this Agreement shai) be valid or effective absent the written agreement of
the parties. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and alE of which shall constitute but one and the
same instrument.
EXECUTED on the dates indicated below, but effective as of the 1st day of August,
2010.
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CCREDC CONSULTING SERVICES AGREEMENT 10012010
CORPUS CHRISTf REGIONAL ECONOMIC
DEVELOPMENT CORPORATfON
By:
Roland C. Mower
Date: ~Q ~ ~~ ~~
President and CEO
CITY OF CORPUS CHRISTI, TEXAS
t
By: ~G~4 Date:
'An I .Escobar
City Manager
ATTEST:
By. -`_
Armando Chapa
City Secretary
APPROVED AS TO LEGAL FORM:
s~
This ~ day of . ~` ~~~'' , 2010.
By:
R. Ja~ys eini
FirsCAssistant City Attorney
For City Attorney
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SEC~~'TARv
CCREDC CONSULTING SERVECES AGREEMENT 10012010
EXHIBIT A
RESPONSIBILITY FOR ADMINISTRATION OF THE CITY'S ADOPTED
ECONOMIC "INCENTIVE POLICIES 2009 -- 2011"
INCENTIVE PARTY RESPONSfBLE FOR
PROCE551NG APPLICATION AND
ASSISTING APPLfCANT
Tax Abatement CCREDC
Chapter 380 Agreement CCREDC
Tax Increment Financing ~ CCREDC
Public Improvement District City - ^evelapment Services
Industrial District CCREDC
Business & Job Development Corporation
(Type A) CCREDC, except as related to the
affordable housing program, ABC
Arena, baseball stadium, and
seawall.
Freeport Exemptions State of Texas /w assistance from
CCREDC
Fast Track Permitting Process Gity -Development Services
Large RetaillMixed Use Development &
Redevelopment CCREDC
Renewal Community CCREDC
Development Fee ReductionlWaiver City -Development Services
Community Air Service Development Initiative City -Airport
High Speed Connection City -MIS
Waiver of Tap Fees for Water and Wastewater City -Development Services
5rnall Business Disabled Access Credit CCREDC
Natural Gas Home Builder Rebate Program City -- Gas
Municipal Management Districts City -Development Services
A -- 1
CCREDC CONSULTING SERVICES AGREEMENT 10012040
INCENTIVE PARTY RESPONSIBLE FOR
PROCESSING APPLICATION AND
ASSISTING APPLICANT
Municipal Development Districts City -Development Services
Municipal Utility Districts City -Development Services
Municipal Setting Designations City -Development Services
Neighborhood Empowerment Zone City -~ Development Services
Texas Leverage Fund State of Texas Iw assistance from
CCREDC
North American Free Trade Agreement
(NAFTA) IZ CCREDC
Emerging Technology Fund State of Texas /w assistance from
CCREDC
Skills Development Fund State of Texas Iw assistance from
CCREDC
Economic Development Refund State of Texas Iw assistance from
CCREDC
Industrial Revenue Bond Program State of Texas Iw assistance from
CCREDC
Section ~ 0$ Loan Guarantee Program City -Neighborhood Services
Enterprise Zones CCREDC
Texas Enterprise Fund Program State of Texas /w assistance from
CCREDC
Texas Industry Development Loan Program State of Texas /w assistance from
CCREDC
Texas Preservation Trust Fund Grant Program City -Development Services
Brownfields Economic Development Initiative City -Environmental Services
Economic Development Initiative State of Texas Iw assistance from
CCREDC
A--2
COREDC CdNSULTING SERVICES AGREEMENT 10012010
INCENTIVE PARTY RESPONSIBLE FOR
PROCESSING APPLICATION AND
ASSISTING APPLICANT
Economic Development Administration U.S. Economic Development
Administration /w assistance firom
CCREDC
Federal Historic Preservation Tax Incentives City -Development Services
Program
New Markets Tax Credit Program State of Texas /w assistance from
CCREDC
Small Business Support Guidelines CCREDC
Notes:
' CCREDC needs to confer with and obtain approval from the Gity Manager or
designee on the availability of any potential City funding or staff support being proposed
before an offer is .made to the applicant since there are na funds dedicated to 380
agreements in the City`s budget.
z If the Renewal Community program is not reauthorized, but a replacement program is
adopted, the CCREDC shall be responsible for processing applications far the
replacement program.
A--3
CCREDC CONSUE_TIiVG SERVICES AGREEMENT 10012010
EXHIBIT ~
ECONOMIC DEVELOPMENT PROGRAM OR ACTIVITY ROLES
~ , CCREDC rose:
a. Counsel prospective economic development applicants on available Federal,
State, and local economic development programs.
b. Receive economic development applications.
c. Initiate Enterprise Zone nominations with State of Texas.
d. Review applications to determine if applicant qualifies and the level of benefit
the appiicant qualifies for.
(~I } Check to ensure the appropriate legal entity has submitted application.
(2} If corporation or partnership, determine if entity is authorized to
conduct business in Texas.
(3) Verify authority of individual who wilt execute agreement far the entity
with the City or appropriate City corporation.
(4) Verify information stated in application.
(5) Conduct preliminary credit checks on all applications, and thorough
background checks, when directed by the City Manager or designee.
(6) Prepare a detailed project summary for proposals/applications,
including information on the company, industry, markets, and products.
Each summary must document job creation and capital investment
numbers for inclusion in the proposed agreement.
e. Conduct or contract for any required economic studies or other investigations,
including any necessary economic and fiscal impact analysis of the projects,
.independent analysis of the company's financial strength relative to industry
standards, and prepare reports necessary for determination of a project's or
company's eligibility for economic development assistance or continuation of
assistance. The City Manager will determine if a more extensive economic study
ar investigation is needed for special projects that may have significant
community impact. CCREDC will be responsible for the first $1,000 of any study
completed. The City Manager and CCREDC will jointly determine whether any
remaining costs must be borne entirely by the applicant, CCREDC, ar City or
what portion of the costs over $~ ,000 each entity may need to bear.
f, Develop programs to assist new and existing small and start-up companies in
the creation of meaningful, .wealth producing jobs.
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CCREDC CONSULTING SERVICES AGREEMENT 10012010
g. Review the City's economic development policies and incentives on an annual
basis and recommend any necessary additions, deletions, or modifications to the
City Council prior to the City's budget preparation cycle,
h. Prepare detailed outline of recommended deal structure and terms of any
necessary agreement,
(~) Term of agreement.
(2) Required investment, and deadlines for making investment.
(3} Required number of jobs to be created, and deadlines for creation of
jabs,
(4} Required number of jobs to be retained, and time lines for retained
jobs.
(5} Incentives far exceeding minimum requirements.
(6) Penalties far failure to meet minimum requirements.
i. Conduct performance audits and compliance testing annually on all current
economic development agreements, certify compliance with agreement, certify
eligibility far periodic payments, and report findings to the City of Carpus Christi
and any appropriate City created corporations ar political entities, such as the
Type A Corporation.
(1 }This requirement includes, but is not limited to:
(a) Type A Corporation grants.
(b) Tax abatement agreements.
(c) Chapter 380 agreements.
(d) Enterprise Zone projects awarded by State of Texas, including
preparation of required reports to the State.
(e) Renewal Community projects, includes preparation of required
reports to the State of Texas.
(2) This requirement does not include affordable housing agreements,
which will be audited by Neighborhood Services.
j. Prepare draft agenda items using standard City formats.
k. Deliver quarterly written updates on economic development activities to Gity
Manager, and make summary presentations to the City Council. Presentations
B--2
CCREDC CONSULTING SERVICES AGREEMENT 10012010
must be submitted to the City Manager for review prior to the scheduled City
Council meetings.
1. In coordination with the City's MIS Department, maintain City's Economic
Development website, including a review of content an at least an annual basis
m. Assist the City of Corpus Christi with special projects that are not related to
the creation or retention of primary jobs, development of small businesses within
the City, but have the potential to generate significant positive economic and/or
fiscal impacts, including, but not limited to, tourism amenities or attractions, resort
development, and destination retail development.
n. Provide support far City created corporations and political economic
development entities, such as the Type A Board and the boards of the City's tax
reinvestment zones, including preparation of items proposed far adoption by the
various boards.
a. Assist City Attorney in development of model agreements and term sheets for
use by the City of Corpus Christi and City created economic development
corporations and political entities.
p. Assist or manage special economic related projects when directed by the City
Manager.
2. Gity Responsibility:
a. Draft agreement wl applicant.
b. Draft service agreement between City and City corporation or City and
CCREDC far administration of agreement with applicant.
c. Draft resolutions authorizing agreements.
d. Maintaining o#ficial files related to agreements in which the City or City
corporation is a party.
e. Schedule approval of agreements an City Council or City corporation
agendas.
f. Make periodic payment under applicable agreements.
3. Responsible City Staff:
a. City Attorney:
(1) Draft agreements and resolutions.
B--3
CCREI]C CONSULTING SERVICES AGREEMENT 1001201 p
b. City Secretary:
(~I) Maintain original agreements in which the City or a City corporation is
a party.
(2) Maintain minutes of City corporations.
c. Finance:
(1) Maintain financial records, and issue appropriate payments under
agreement.
d. Economic Development Liaison:
(1) Schedule meetings of City corporations, and prepare agendas and
public notices.
(2) Schedule items for action of City Council.
(3) Prepare final agenda items.
B--4
CCREDC CONSULTING $ERVIOES AGREEMENT 10012010
MOTION
Motion authorizing the City Manager or his designee to execute a service agreement
with the Corpus Christi Regional Economic Development Corporation (GGREDC)
whereby GGREDC will manage the City's economic development program for annual
fee of $~ 25,000. The term of the agreement is August 1, 2010 through July 31, 2011.
ATTEST:
Armando Chapa Joe Aflame
City Secretary Mayor, Gity of Corpus Christi
GGREDC CONSULTING SERVICES AGREEMENT 10012070