HomeMy WebLinkAbout04/26/2018 - Regular Agenda Packet - City CouncilCity Council Regular
College Station, TX
Meeting Agenda - Final
City Hall
1101 Texas Ave
College Station, TX 77840
City Hall Council Chambers6:00 PMThursday, April 26, 2018
1. Pledge of Allegiance, Invocation, Consider absence request.
Presentation:
• Presentation proclaiming May 4th, 2018 as International Fire Fighter’s Day.
Hear Visitors: During this time a citizen may address the City Council on any item which
does not appear on the posted Agenda. Registration forms are available in the lobby and at
the desk of the City Secretary. This form should be completed and delivered to the City
Secretary by 5:30 PM on the day of the Council meeting. Upon stepping to the podium the
speaker must state their name and city of residence, including the state of residence if the
city is located out of state. Each speaker's remarks are limited to three minutes. A series of
timer lights will change from green to yellow and an alarm will sound after two and one -half
minutes to signal thirty seconds remaining to conclude the remarks. At three minutes the
timer light will change to red and the final alarm will sound. The speaker must then conclude
the remarks. The City Council will listen and receive the information presented by the
speaker, ask staff to look into the matter, or place the issue on a future agenda. Topics of
operational concerns shall be directed to the City Manager. Comments should not
personally attack other speakers, Council or staff.
Consent Agenda
At the discretion of the Mayor, individuals may be allowed to speak on a Consent Agenda
Item. Individuals who wish to address the City Council on a consent agenda item not posted
as a public hearing shall register with the City Secretary prior to the Mayor's reading of the
agenda item. Registration forms are available in the lobby and at the desk of the City
Secretary.
2. Presentation, possible action, and discussion of consent agenda items which consists of
ministerial or "housekeeping" items required by law. Items may be removed from the
consent agenda by majority vote of the Council.
Presentation, possible action, and discussion of minutes for:
• April 12, 2018 Workshop
• April 12, 2018 Regular
18-02822a.
Sponsors:Smith
WKSHP041218 DRAFT Minutes
RM041218 DRAFT Minutes
Attachments:
Page 1 College Station, TX Printed on 4/20/2018
April 26, 2018City Council Regular Meeting Agenda - Final
Presentation, possible action, and discussion regarding the Agreement
for Services with the Brazos Valley Softball Umpires Association to
provide officiating services for City athletic leagues, programs and
tournaments (Contract Number 18300369) in an amount not to exceed
$125,000 per year.
18-02592b.
Sponsors:Kelbly
Presentation, possible action, and discussion on approving job order
construction contract #18300449 for various facilities corrective
maintenance services from Jamail & Smith Construction, LP in the
amount of $346,260.81. Contract pricing is available from Jamail &
Smith Construction, LP through Buy Board contract #464-14.
18-02612c.
Sponsors:Harmon
Presentation, possible action, and discussion on an Interlocal
Agreement between the City of College Station and College Station
Independent School District for the cost participation by College
Station Independent School District in the City ’s Holleman Drive South
Widening Project. CSISD will be reimbursing the City for actual costs
of the deceleration lane, traffic signal improvements, and necessary
utility relocations up to $395,500 for improvements related to the new
River Bend Elementary School.
18-02622d.
Sponsors:Harmon
signed by CSISD Holleman ILAAttachments:
Presentation, possible action, and discussion regarding approval of a
professional services contract (Contract No. 18300430) with
Kimley-Horn and Associates, Inc. in the amount of $312,000 for the
design and construction phase services for the Northeast Sanitary
Sewer Trunk Line Phase 2 Project and a Resolution Declaring
Intention to Reimburse Certain Expenditures with Proceeds From Debt.
18-02632e.
Sponsors:Harmon
Project Location Map
NE Sewer Trunkline Phase 2 - DRR
Resolution for debt .pdf
Attachments:
Presentation, possible action, and discussion regarding approval of the
construction contract (18300375) with C. F. McDonald Electric, Inc in
the amount of $171,469 for the Municipal Court /Traffic Control Center
Backup Generator Project.
18-02642f.
Sponsors:Harmon
Project Map
Tabulation
Attachments:
Page 2 College Station, TX Printed on 4/20/2018
April 26, 2018City Council Regular Meeting Agenda - Final
Presentation, possible action, and discussion regarding approval of a
resolution authorizing a License Agreement with Thomas and
Stephanie Adams for the encroachment of a portion of an
underground pool structure located at Lot 26, Block 30, Phase 9A,
Pebble Creek Subdivision.
18-02692g.
Sponsors:Cotter
VICINITY MAP
LOCATION MAP
Resolution.doc
License Agreement (Exhibit A).pdf
Attachments:
Presentation, possible action, and discussion regarding the first lease
amendment with JAR Capital Investments, LLC amending the original
lease (16300284) extending lease term for two years for leased space
at 511 University Drive East.
18-02832h.
Sponsors:Nettles
Lease ExtensionAttachments:
Presentation, possible action, and discussion on the second reading of
a franchise agreement with Budget Disposal d /b/a Premier Metal
Buyers, for the collection of recyclables from commercial businesses
and multi-family locations.
18-02842i.
Sponsors:Harmon
Premier Metal Buyers Franchise AgreementAttachments:
Presentation, possible action, and discussion on the second reading of
a franchise agreement with Pronto Services, LLC. for the collection of
recyclables from commercial businesses and multi-family locations.
18-02852j.
Sponsors:Harmon
FY18_Franchise_ProntoServicesLLCAttachments:
Regular Agenda
Individuals who wish to address the City Council on an item posted as a public hearing shall
register with the City Secretary prior to the Mayor's announcement to open the public
hearing.· A speaker who wishes to include computer -based information while addressing
the Council must provide the electronic file to the City Secretary by noon of the Council
meeting day when the presentation is planned. The Mayor will recognize individuals who
wish to come forward to speak for or against the item. Upon stepping to the podium the
speaker must state their name and city of residence, including the state of residence if the
city is located out of state. On items related to land use and those that would directly impact
the speaker's residence or neighborhood, the speaker is encouraged to identify their
College Station neighborhood. Each speaker's remarks are limited to three minutes. A
Page 3 College Station, TX Printed on 4/20/2018
April 26, 2018City Council Regular Meeting Agenda - Final
series of timer lights will change from green to yellow and an alarm will sound after two and
one-half minutes to signal thirty seconds remaining to conclude the remarks. At three
minutes the timer light will change to red and the final alarm will sound. The speaker must
then conclude the remarks. After a public hearing is closed, there shall be no additional
public comments. If Council needs additional information from the general public, some
limited comments may be allowed at the discretion of the Mayor.
Public Hearing, presentation, possible action, and discussion
regarding an ordinance amending Appendix “A”, “Unified Development
Ordinance,” Section 4.2, "Official Zoning Map," of the Code of
Ordinances of the City of College Station, Texas by changing the
zoning district boundaries from PDD Planned Development District to T
Townhouse for approximately 36 acres generally located at the
intersection of Buena Vista and Summit Crossing Lane.
18-02741.
Sponsors:Lazo
Background Information
Vicinity Aerial SAM
Ordinance
Attachments:
Public Hearing, presentation, possible action, and discussion
regarding an ordinance amending Appendix A, “Unified Development
Ordinance,” Article 4, “Zoning Districts,” Section 4.2 “Official Zoning
Map,” of the Code of Ordinances of the City of College Station, Texas
by changing the zoning district boundaries from PDD Planned
Development District to MF Multi-Family on approximately 12 acres of
land, located at the intersection of Summit Crossing Lane and Harvey
Road.
18-02752.
Sponsors:Lazo
Background Information
Vicinity Aerial SAM
Ordinance
Attachments:
Public Hearing, presentation, possible action, and discussion to
consider a Conditional Use Permit request for a Mobile Food Court, on
approximately 0.4 acres located at 203 First Street.
18-02783.
Sponsors:Lazo
Background Information
Vicinity Aerial SAM
2016 City Council Meeting Minutes
Ordinance
Attachments:
Presentation, possible action, and discussion regarding approval of an
ordinance annexing approximately 65 acres located in the City’s ETJ
18-02734.
Page 4 College Station, TX Printed on 4/20/2018
April 26, 2018City Council Regular Meeting Agenda - Final
on the west side of the City, generally located in the vicinity of Rock
Prairie Road West, Holleman Drive South, and North Graham Road.
Sponsors:Simms
Map of Annexation Areas
Fiscal Impact Analysis
Ordinance
Attachments:
Presentation, possible action, and discussion concerning adoption of
an ordinance authorizing the issuance of up to $55,000,000 in
principal amount of “City of College Station, Texas Certificates of
Obligation, Series 2018”; delegating the authority to certain City
Officials to execute certain documents relating to the sale of the
certificates; approving and authorizing instruments and procedures
relating to the certificates; and enacting other provisions relating to the
subject.
18-02865.
Sponsors:Leonard
2018 Debt Issue - draft
Ordinance (CO) (ver 1).pdf
College Station, Series 2018 CO - Draft POS 2 (Legistar).pdf
Attachments:
Presentation, possible action, and discussion regarding contract
18300367 with JT Vaughn Construction, LLC as the Construction
Manager at Risk for the College Station Police Headquarters project.
18-02776.
Sponsors:Wozniak
18300367 - Contract JT Vaughn Construction, LLCAttachments:
Presentation, possible action, and discussion regarding an
appointment to the Research Valley Partnership (RVP).
18-02817.
Sponsors:Smith
8. Presentation, possible action, and discussion on future agenda items and review of
standing list of Council generated agenda items: A Council Member may inquire about a
subject for which notice has not been given. A statement of specific factual information or
the recitation of existing policy may be given. Any deliberation shall be limited to a proposal
to place the subject on an agenda for a subsequent meeting.
9. Adjourn.
The City Council may adjourn into Executive Session to consider any item listed on this
agenda if a matter is raised that is appropriate for Executive Session discussion. An
announcement will be made of the basis for the Executive Session discussion.
I certify that the above Notice of Meeting was posted at College Station City Hall, 1101
Texas Avenue, College Station, Texas, on April 20, 2018 at 5:00 p.m.
Page 5 College Station, TX Printed on 4/20/2018
April 26, 2018City Council Regular Meeting Agenda - Final
_____________________
City Secretary
This building is wheelchair accessible. Persons with disabilities who plan to attend this
meeting and who may need accommodations, auxiliary aids, or services such as
interpreters, readers, or large print are asked to contact the City Secretary’s Office at (979)
764-3541, TDD at 1-800-735-2989, or email adaassistance@cstx.gov at least two business
days prior to the meeting so that appropriate arrangements can be made. If the City does
not receive notification at least two business days prior to the meeting, the City will make a
reasonable attempt to provide the necessary accommodations.
Penal Code § 30.07. Trespass by License Holder with an Openly Carried Handgun.
"Pursuant to Section 30.07, Penal Code (Trespass by License Holder with an Openly
Carried Handgun) A Person Licensed under Subchapter H, Chapter 411,
Government Code (Handgun Licensing Law), may not enter this Property with a
Handgun that is Carried Openly."
Codigo Penal § 30.07. Traspasar Portando Armas de Mano al Aire Libre con Licencia.
“Conforme a la Seccion 30.07 del codigo penal (traspasar portando armas de mano
al aire libre con licencia), personas con licencia bajo del Sub-Capitulo H, Capitulo
411, Codigo de Gobierno (Ley de licencias de arma de mano), no deben entrar a esta
propiedad portando arma de mano al aire libre.”
Page 6 College Station, TX Printed on 4/20/2018
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0282 Name:Minutes
Status:Type:Minutes Consent Agenda
File created:In control:4/16/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion of minutes for:
• April 12, 2018 Workshop
• April 12, 2018 Regular
Sponsors:Tanya Smith
Indexes:
Code sections:
Attachments:WKSHP041218 DRAFT Minutes
RM041218 DRAFT Minutes
Action ByDate Action ResultVer.
Presentation, possible action, and discussion of minutes for:
• April 12, 2018 Workshop
• April 12, 2018 Regular
Relationship to Strategic Goals:
·Good Governance
Recommendation(s): Approval
Summary:N/A
Budget & Financial Summary: None
Attachments:
• April 12, 2018 Workshop
• April 12, 2018 Regular
College Station, TX Printed on 4/20/2018Page 1 of 1
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WKSHP041218 Minutes Page 1
MINUTES OF THE CITY COUNCIL WORKSHOP
CITY OF COLLEGE STATION
APRIL 12, 2018
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
Karl Mooney, Mayor
Council:
Bob Brick
Jerome Rektorik
Linda Harvell
Barry Moore
John Nichols
James Benham
City Staff: Student Liaison
Chuck Gilman, Interim City Manager Tory Oxendahl, Municipal Affairs
Jeff Capps, Assistant City Manager
Carla Robinson, City Attorney
Tanya Smith, City Secretary
Ian Whittenton, Deputy City Secretary
1. Call to Order and Announce a Quorum is Present
With a quorum present, the Workshop of the College Station City Council was called to order by
Mayor Mooney at 3:30 p.m. on Thursday, April 12, 2018 in the Council Chambers of the City of
College Station City Hall, 1101 Texas Avenue, College Station, Texas 7784 0.
2. Executive Session
In accordance with the Texas Government Code §551.071-Consultation with Attorney, §551.074-
Personnel, and §551.087-Economic Incentive Negotiations, the College Station City Council
convened into Executive Session at 3:30 p.m. on Thursday, April 12, 2018 in order to continue
discussing matters pertaining to:
A. Consultation with Attorney to seek advice regarding pending or contemplated litigation; to wit:
Kathryn A. Stever-Harper as Executrix for the Estate of John Wesley Harper v. City of
College Station and Judy Meeks; No. 15,977-PC in the County Court No. 1, Brazos
County, Texas; and
McCrory Investments II, LLC d/b/a Southwest Stor Mor v. City of College Station; Cause
No. 17-000914-CV-361; In the 361st District Court, Brazos County, Texas
City of College Station v. Gerry Saum, Individually, and as Independent Executrix of the
Estate of Susan M. Wood, Deceased; Cause No. 17-002742-CV-361; In the 361st District
Court, Brazos County, Texas
B. Consultation with attorney to receive legal advice; to wit:
WKSHP041218 Minutes Page 2
Legal Issues Concerning Land Acquisition for the Capstone Drive - Barron Road Re-
Alignment Project.
Legal advice regarding charter amendment elections.
C. Deliberation on the appointment, employment, evaluation, reassignment, duties, discipline, or
dismissal of a public officer; to wit:
Council Self-evaluation
City Secretary
D. Deliberation on an offer of financial or other incentives for a business prospect that the Council
seeks to have locate, stay or expand in or near the City; to wit:
Economic incentives for a project located generally in the area northeast of the intersection
of Raymond Stotzer Parkway and Highway 47 in College Station.
The Executive Session recessed at 5:43 p.m.
3. Take action, if any, on Executive Session.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Rektorik, the City Council voted seven (7) for and none (0) opposed, to direct the City Attorney
and City Secretary to review the College Station City Charter and to recommend amendments to
be considered by the Council for inclusion in a possible charter amendment election to be held
November 6, 2018. The motion carried unanimously.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Rektorik, the City Council voted six (6) for and one (1) opposed, with Councilmember Brick
voting against, to authorize city staff to negotiate with a search firm for the purpose of hiring a
new city manager. The motion carried.
4. Presentation, possible action and discussion on items listed on the consent agenda.
Items 2c, 2i, 2j, and 2l were pulled from Consent for clarification.
(2c): Debbie Eller, Director of Community Services, provided an overview of the Community
Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) grant
funds are currently used by the City to provide various housing assistance programs to income-
eligible households.
(2i): Donald Harmon, Director of Public Works, provided an explanation of construction
administration for the Rock Prairie Elevated Storage Tank Project. Mr. Harmon explained that
the scope of this contract includes design, bidding, and construction phase services.
(2j): Donald Harmon, Director of Public Works, provided an explanation of the sale and removal
of approximately 19,000 tons of asphalt millings from city property.
(2l): Lance Simms, Director of Public Works, provided the total number of acres for the eight non-
annexation development agreements representing over 2,000 acres in the Cit y’s ETJ and that there
are roughly 200 out of 2000 of those acres in a flood plain.
WKSHP041218 Minutes Page 3
5. Presentation, possible action, and discussion regarding the 2017 and 2018 Planning &
Zoning Commission Plan of Work in a Joint Meeting with the Planning & Zoning
Commission.
With a quorum present, the Joint Workshop with the College Station City Council was called to
order by Chair Jane Kee at 5:45 p.m. on Thursday, April 12, 2018 in the Council Chambers of the
City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840. Present
were: Johnny Burns, Dennis Christiansen, Jane Kee, Bill Mather, Jeremy Osborne, and Elianor
Vessali.
The Planning and Zoning Commission presented their 2017 accomplishments and the 2018
Proposed Plan of Work. Comp Plan items included the implementation of adopted plans, updating
the Thoroughfare Plan, and updating the Bicycle, Pedestrian, and Greenways Plan. Issues
regarding Neighborhood Integrity included a traffic calming tool kit and student housing in
establishing Single-Family Neighborhoods. UDO regulatory items includes update on off-street
parking requirements, sign ordinance revision, bicycle rack standards, suburban commercial land
use & zoning, and non-residential landscaping requirements. On-going items are the Pre-
Application Conference Semi-Annual Report and economic development quarterly updates. The
commissioners have also requested information regarding parkland dedication, block length and
perimeter, sidewalk fee-in-lieu, Mueller report update, public hearing notification, and review of
development fees.
There being no further business, Chair Kee adjourned the joint workshop with the College Station
City Council at 6:08 p.m. on Thursday, April 12, 2018.
6. Presentation, possible action, and discussion regarding the City Council Strategic Plan.
Aubrey Nettles, Special Projects Coordinator, updated Council on the implementation plan for the
2018 City of Council Strategic Plan. A brief overview of 2018 projects was provided. Some of
these will build upon each other and will continue into 2019 and 2020. Staff will provide progress
report updates through weekly updates and other means.
7. Council Calendar
Council reviewed the calendar.
8. Discussion, review and possible action regarding the following meetings: Animal Shelter
Board, Annexation Task Force, Arts Council of Brazos Valley, Arts Council Sub-committee,
Audit Committee, Bicycle, Pedestrian, and Greenways Advisory Board, Bio-Corridor Board
of Adjustments, Blinn College Brazos Valley Advisory Committee, Brazos County Health
Dept., Brazos Valley Council of Governments, Bryan/College Station Chamber of
Commerce, Budget and Finance Committee, BVSWMA, BVWACS, Compensation and
Benefits Committee, Experience Bryan-College Station, Design Review Board, Economic
Development Committee, FBT/Texas Aggies Go to War, Gulf Coast Strategic Highway
Coalition, Historic Preservation Committee, Interfaith Dialogue Association,
Intergovernmental Committee, Joint Relief Funding Review Committee, Landmark
Commission, Library Board, Metropolitan Planning Organization, Parks an d Recreation
Board, Planning and Zoning Commission, Research Valley Partnership, Research Valley
Technology Council, Regional Transportation Committee for Council of Governments,
Sister Cities Association, Transportation and Mobility Committee, TAMU Economic
WKSHP041218 Minutes Page 4
Development, TAMU Student Senate, Texas Municipal League, Twin City Endowment,
Walk with the Mayor, YMCA, Youth Advisory Council, Zoning Board of Adjustments.
Councilmember Rektorik reported on Experience BCS and RVP.
Councilmember Nichols reported on the Board of Health.
At 6:39 p.m., Mayor Mooney recessed the Workshop.
Workshop reconvened at 9:02 p.m.
9. Adjournment
There being no further business, Mayor Mooney adjourned the workshop of the College Station
City Council at 9:02 p.m. on Thursday, April 12, 2018.
________________________
Karl Mooney, Mayor
ATTEST:
_______________________
Tanya Smith, City Secretary
RM041218 Minutes Page 1
MINUTES OF THE REGULAR CITY COUNCIL MEETING
CITY OF COLLEGE STATION
APRIL 12, 2018
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
Karl Mooney, Mayor
Council:
Bob Brick
Jerome Rektorik
Linda Harvell
Barry Moore
John Nichols
James Benham
City Staff: Student Liaison
Chuck Gilman, Interim City Manager Tory Oxendahl, Municipal Affairs
Jeff Capps, Assistant City Manager
Carla Robinson, City Attorney
Tanya Smith, City Secretary
Ian Whittenton, Deputy City Secretary
Call to Order and Announce a Quorum is Present
With a quorum present, the Regular Meeting of the College Station City Council was called t o
order by Mayor Mooney at 6:40 p.m. on Thursday, April 12, 2018 in the Council Chambers of the
City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840.
1. Pledge of Allegiance, Invocation, consider absence request.
Hear Visitors Comments
Abigail Fields, College Station, stated concerns regarding the restriction of so called “aggressive
breeds” of dogs in rental units. Ms. Fields explained that these breeds are discriminated against
based on reputation and not individual merits of the animal. She believes that an alternative to
banning breeds is to allow individual dogs to be tested and certified as non -aggressive. A survey
was taken and 52% of the community stated they could not have the dog they wanted because of
the restriction of apartment complexes.
Nan Crouse, College Station, representing the College Station Association of Neighborhoods,
stated how her fight for her neighborhood has gone unnoticed. She belives that the College Station
Association of Neighborhoods allows individual efforts to be more effective and encourages those
who are interested in neighborhood integrity to join.
RM041218 Minutes Page 2
Constance Woodman, College Station, stated her concerns about a recent news article that had
declared College Station as the least affordable city to live in. Ms. Woodman feels the city is
allowing rental companies to harm the young people with an impossible costs of living and
predatory practices.
CONSENT AGENDA
2a. Presentation, possible action, and discussion of minutes for:
March 19, 2018 Special Meeting
March 22, 2018 Workshop Meeting
March 22, 2018 Regular Meeting
April 2, 2018 Special Meeting
2b. Presentation, possible action, and discussion on the first reading of a franchise agreement
with Budget Disposal d/b/a Premier Metal Buyers, for the collection of recyclables from
commercial businesses and multi-family locations.
2c. Presentation, possible action, and discussion of proposed Habitat for Humanity Down
Payment Assistance Program Guidelines.
2d. Presentation, possible action, and discussion of proposed revision to Down Payment
Assistance Guidelines.
2e. Presentation, possible action, and discussion on a professional services contract with
Kimley-Horn and Associates, Inc., in the amount of $232,650 for the rehabilitation of the
parking lots at Brian Bachmann Park and Stephen C. Beachy Central Park.
2f. Presentation, possible action, and discussion on a Service Agreement with Emergicon,
LLC to provide ambulance billing, accounts receivable and delinquent account collection
services in an annual not-to-exceed amount of $155,000.
2g. Presentation, possible action, and discussion to approve a contract with Housley
Communications, Inc. to lay underground conduit for future fiber optic infrastructure, in
the amount of $98,730, as part of a joint bore with the BVCOG.
2h. Presentation, possible action, and discussion on the first reading of a franchise agreement
with Pronto Services, LLC. for the collection of recyclables from commercial businesses and
multi-family locations.
2i. Presentation, possible action, and discussion on a professional services contract (Contract
No. 1830097) with Freese and Nichols, Inc. in the amount of $988,500 for the design, bidding,
and construction administration for the Rock Prairie Elevated Storage Tank Project and
approval of Resolution No. 04-12-18-2i declaring intention to reimburse certain expenditures
with proceeds from debt.
2j. Presentation, possible action, and discussion regarding the sale and removal of
approximately 19,000 tons of surplus asphalt millings from city property (Contract No.
18300461) for a total of $219,450 returned to the Roadway Maintenance fund.
RM041218 Minutes Page 3
2k. Presentation, possible action, and discussion regarding approval of a construction
contract (no. 18300201) with Dudley Construction, LTD. in the amount of $4,569,724.32 for
the construction of the Veterans Park and Athletic Complex Build-Out, Phase 1 Project.
2l. Presentation, possible action, and discussion regarding the approval of the annexation
development agreements referenced herein and authorizing the Mayor to sign said
agreements on behalf of the City Council.
2m. Presentation, possible action, and discussion regarding approval of a real estate contract
(Contract No. 18300475) that will authorize the purchase of property needed for the
extension of General Parkway. The purchase price of the property is $225,000 and the closing
costs are estimated at $2,500.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Moore, the City Council voted seven (7) for and none (0) opposed, to approve the Consent Agenda.
The motion carried unanimously.
REGULAR AGENDA
1. Public Hearing, presentation, possible action, and discussion regarding Ordinance No.
2018-3997 amending Appendix A, “Unified Development Ordinance,” Section 12-4.2,
“Official Zoning Map,” of the Code of Ordinances of the City of College Station, Texas, by
changing the zoning district boundaries from R Rural to SC Suburban Commercial for
approximately 0.9 acres and R Rural to WRS Wellborn Restricted Suburban for
approximately 34 acres of land located on FM 2154 approximately 0.4 miles from the
intersection of FM 2154 and Greens Prairie Road West.
Jennifer Paz, Planning & Development, stated that this request is amending the zoning district
boundaries on the subject property to rezone approximately 0.9 acres from R Rural to SC Suburban
Commercial and approximately 34 acres from R Rural to WRS Wellborn Restricted Suburban.
The applicant has proposed that approximately 1 acre along Wellborn Road be rezoned to SC
Suburban Commercial. Independently, this portion of the property would not likely be viable for
development but the adjacent property is zoned SC Suburban Commercial and in common
ownership with the subject property; therefore, with consolidation of these properties, adequate
property would be available for development.
The Planning & Zoning Commission unanimously recommended approval of the rezoning request
at their meeting on March 15, 2018. Staff also recommended approval.
At approximately 6:56 p.m., Mayor Mooney opened the Public Hearing.
There being no further comments, the Public Hearing was closed at 6:56 p.m.
MOTION: Upon a motion made by Councilmember Moore and a second by Councilmember
Rektorik, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2018-
3997 amending Appendix A, “Unified Development Ordinance,” Section 12-4.2, “Official Zoning
Map,” of the Code of Ordinances of the City of College St ation, Texas, by changing the zoning
district boundaries from R Rural to SC Suburban Commercial for approximately 0.9 acres and R
Rural to WRS Wellborn Restricted Suburban for approximately 34 acres of land located on FM
RM041218 Minutes Page 4
2154 approximately 0.4 miles from the intersection of FM 2154 and Greens Prairie Road West.
The motion carried unanimously.
2. Public Hearing, presentation, possible action, and discussion Ordinance No. 2018-3998 to
consider a Conditional Use Permit request for a Night Club, Bar, or Tavern Use
encompassing 3,000 square feet of Building 3 at The Yard at Caprock Crossing, on
approximately 4 acres located at 1551 Greens Prairie Road West, generally located near the
intersection of Greens Prairie Road West and State Highway 6 South Frontage Road.
Rachel Lazo, Planning & Development, stated that this request is for a Conditional Use Permit for
the use of a Bar, comprising of approximately 3,000 square feet in Building 3 of a future
commercial development, currently zoned GC General Commercial. The proposed use of a bar in
this location requires a Conditional Use Permit to allow for a Nightclub, Tavern or Bar Use. The
applicant is currently constructing a 3-building commercial development. The applicant requested
that in addition to the restaurant, that the establishment be able to operate as a bar, allowing more
than 75% of their annual gross revenue be derived from the sale of alcohol. The applicant has
proposed that the bar operates from 2:00 pm to 2:00 am. The applicant is not proposing any
additional changes to the site.
The Planning & Zoning Commission considered this item at their March 15, 2018 meeting and
voted unanimously to recommend approval.
At approximately 7:01 p.m., Mayor Mooney opened the Public Hearing.
There being no further comments, the Public Hearing was closed at 7:01 p.m.
MOTION: Upon a motion made by Councilmember Nichols and a second by Councilmember
Rektorik, the City Council voted six (6) for and none (0) opposed, with Councilmember Moore
abstaining, to adopt Ordinance 2018-3998 a Conditional Use Permit for a Night Club, Bar, or
Tavern Use encompassing 3,000 square feet of Building 3 at The Yard at Caprock Crossing, on
approximately 4 acres located at 1551 Greens Prairie Road West, generally located near the
intersection of Greens Prairie Road West and State Highway 6 South Frontage Road. The motion
carried unanimously.
3. Public Hearing, presentation, possible action, and discussion regarding Ordinance No.
2018-3999 amending Appendix A, “Unified Development Ordinance,” Section 5.3 “Non-
Residential Zoning District”, Section 5.4 “Non-Residential Dimensional Standards”, Section
6.3 “Types of Uses”, Section 6.4 “Specific Use Standards”, Section 7.2 “General Provisions”,
Section 7.3 “Off-Street Parking”, Section 7.7 “Buffer Requirements”, Section 7.10 “Non-
Residential Architectural Standards”, Section 7.11 “Outdoor Lighting Standards”, and
Section 11.2 “Defined Terms” as it relates to requirements for the SC Suburban Commercial
Zoning District.
City Attorney, Carla Robinson, distributed an updated Ordinance No. 2018-3999 along with a
second document with changes recommended by the Planning and Zoning Commission to the
council.
Jennifer Paz, Planning & Development, stated that this item originated with the 2017 Planning &
Zoning (P&Z) Commission Plan-of-Work and is intended to add flexibility to the SC Suburban
RM041218 Minutes Page 5
Commercial Zoning District by modifying its requirements. The most significant changes include
allowing additional uses and reducing buffer and architectural requirements. A summary of the
proposed changes is provided below:
Amendments to Section 5.3 “Non-Residential Zoning District” and Section 5.4 “Non-
Residential Dimensional Standards” revises the definition and setbacks for SC Suburban
Commercial.
Amendments to Section 6.3 “Types of Uses” and Section 6.4 “Specific Use Standards”
includes the addition of new permitted uses and the revision of requirements for existing uses
to allow more flexibility for development within SC Suburban Commercial.
Amendments to Section 7.2 “General Provisions” removes additional height requirements for
SC Suburban Commercial that are primarily related to roof pitch.
Amendments to Section 7.3 “Off-Street Parking” provides parking requirements for the new
proposed uses.
Amendments to Section 7.7 “Buffer Requirements” reduces the buffer requirement for SC
Suburban Commercial.
Amendment to 7.10 “Non-Residential Architectural Standards” changes architectural
standards by removing the requirement for pitch roofs in SC Suburban Commercial and
allowing for additional architectural elements.
Amendment to 7.11 “Outdoor Lighting Standards” provides clarification to outdoor lighting
requirements.
Amendments to Section 11.2 “Defined Terms” incorporates definitions for Residential Live-
Work Unit and Assisted Living/Residential Care Facility.
The Planning & Zoning Commission approveditem on April 5th. Details of their recommendation
were provided by Mr. Burns.
At approximately 8:07 p.m., Mayor Mooney opened the Public Hearing.
Constance Woodman, College Station, cautioned against removing any buffer between drive-thru
or gas stations and residential units because of possible health concerns from vehicle emissions.
Veronica Morgan, College Station, belives that this ordinance makes the Suburban Commercial
zoning slightly more useful. She does take issue with the 15,000 square foot maximum size of
hotels because she believes that size is not economically viable.
Hugh Sterns, College Station, encourages the Council to go back and paint with a finer brush not
to approve now. He believes that Suburban Commercial should be restrictive and tailored to
protect neighborhood integrity or create a zoning that is specifically tailored to neighborhoods. He
also stated that restricting drive-troughs will reduce congestion by encouraging foot traffic.
Shirley Dupriest, College Station, called attention to the provisions of this ordinance that would
allow an owner to have a tenant on top of a two-story building and an unknown business being
operated on the first floor. She asked the council to consider the types of combinations that this
ordinance would allow.
Fred Dupriest, College Station, stated that he believes that this change would put real estate zoned
Suburban Commercial on the same plane as those zoned General Commercial. He does not believe
that these changes would serve neighborhoods which are adjacent to this zoning district.
RM041218 Minutes Page 6
There being no further comments, the Public Hearing was closed at 8:19 p.m.
MOTION: Upon a motion made by Councilmember Benham and seconded by Councilmember
Moore to adopt P&Z proposed recommended Ordinance 2018-3999 amending Appendix A,
“Unified Development Ordinance,” Section 5.3 “Non-Residential Zoning District”, Section 5.4
“Non-Residential Dimensional Standards”, Section 6.3 “Types of Uses”, Section 6.4 “Specific Use
Standards”, Section 7.2 “General Provisions”, Section 7.3 “Off-Street Parking”, Section 7.7
“Buffer Requirements”, Section 7.10 “Non-Residential Architectural Standards”, Section 7.11
“Outdoor Lighting Standards”, and Section 11.2 “Defined Terms” as it relates to requirements for
the SC Suburban Commercial Zoning District, and with additional changes made by Legal.
MOTION: Upon a motion made by Councilmember Nichols and a second by Councilmember
Brick, the City Council voted four (4) for and three (3) opposed, with Councilmembers Benham,
Moore, and Rektorik voting against, to amend the main motion and remove the section on Fuel
Sale uses. The motion carried.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Moore, the City Council voted seven (7) for and none (0) opposed, to adopt P&Z proposed
recommended Ordinance 2018-3999 amending Appendix A, “Unified Development Ordinance,”
Section 5.3 “Non-Residential Zoning District”, Section 5.4 “Non-Residential Dimensional
Standards”, Section 6.3 “Types of Uses”, Section 6.4 “Specific Use Standards”, Section 7.2
“General Provisions”, Section 7.3 “Off-Street Parking”, Section 7.7 “Buffer Requirements”,
Section 7.10 “Non-Residential Architectural Standards”, Section 7.11 “Outdoor Lighting
Standards”, and Section 11.2 “Defined Terms” as it relates to requirements for the SC Suburban
Commercial Zoning District, and with additional changes made by Legal, as amended. The motion
carried unanimously.
At 8:40 p.m., Mayor Mooney recessed the Regular.
Regular reconvened at 8:49 p.m.
4. Public Hearing, presentation, possible action, and discussion regarding Ordinance No.
2018-4000 amending Appendix A, "Unified Development Ordinance," Article 4, “Zoning
Districts,” Section 4.2, "Official Zoning Map," of the Code of Ordinances of the City of
College Station, Texas by removing the KO Krenek Tap Overlay zoning district from all
properties affected in the City of College Station, which are those located within 750 feet of
Krenek Tap Road.
Regular agenda items 4 & 5 were presented together.
Molly Hitchcock, Planning & Development Assistant Director, stated that this item originated with
the 2017 Planning & Zoning Commission’s Plan of Work item to help streamline the Unified
Development Ordinance (UDO) and development processes. The request is to remove an overlay
zoning district. There is no proposal for a new zoning district. The proposed rezoning removes
property from the regulations of the Krenek Tap Overlay zoning district, and this rezoning
accompanies an amendment to the UDO to delete the KO zoning district. The Krenek Tap Overlay
zoning district was adopted in 2004 to enhance the views along Krenek Tap Road and create a
sense of identity for the City, not only along the municipal property but along Krenek Tap Road
itself. At the time, the City was pursuing the City Centre Concept for the development of the
RM041218 Minutes Page 7
municipal property. The overlay changed the development standards for all properties along
Krenek Tap (including single-family) by requiring parking to be located behind structures and
placing limitations on façade and fence materials and roof and signage options. The overlay is
applied to all property from the Krenek Tap right-of-way and back 750 feet (approximately 171
acres).
The Planning and Zoning Commission unanimously recommended approval of the removal of the
KO Krenek Tap Overlay at their meeting on March 15, 2108.
At approximately 8:53 p.m., Mayor Mooney opened the Public Hearing.
There being no further comments, the Public Hearing was closed at 8:53 p.m.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Moore, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2018-4000
amending Appendix A, "Unified Development Ordinance," Article 4, “Zoning Districts,” Section
4.2, "Official Zoning Map," of the Code of Ordinances of the City of College Station, Texas by
removing the KO Krenek Tap Overlay zoning district from all properties affected in the City of
College Station, which are those located within 750 feet of Krenek Tap Road. The motion carried
unanimously.
5. Public Hearing, presentation, possible action, and discussion regarding Ordinance No.
2018-4001 amending Appendix A, “Unified Development Ordinance,” Section 1.10
“Transitional Provisions,” Section 2.5 “Design Review Board,” Section 4.1 “Zoning Map
Amendment,” Section 5.10 “Overlay Districts,” and Section 7.5 “Signs” of the Code of
Ordinances of the City of College Station, Texas, to remove the Krenek Tap Overlay zoning
district.
Regular agenda items 4 & 5 were presented together.
The Planning & Zoning Commission unanimously recommended to approve this item at their
regular meeting on March 15, 2018.
At approximately 8:54 p.m., Mayor Mooney opened the Public Hearing.
There being no further comments, the Public Hearing was closed at 8:54 p.m.
MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember
Moore, the City Council voted seven (7) for and none (0) opposed, to adopt Ordinance 2018-4001
amending Appendix A, “Unified Development Ordinance,” Section 1.10 “Transitional
Provisions,” Section 2.5 “Design Review Board,” Section 4.1 “Zoning Map Amendment,” Section
5.10 “Overlay Districts,” and Section 7.5 “Signs” of the Code of Ordinances of the City of College
Station, Texas, to remove the Krenek Tap Overlay zoning district. The motion carried
unanimously.
6. Presentation, possible action, and discussion on future agenda items and review of
standing list of Council generated agenda items: A Council Member may inquire about a
subject for which notice has not been given. A statemen t of specific factual information or
RM041218 Minutes Page 8
the recitation of existing policy may be given. Any deliberation shall be limited to a proposal
to place the subject on an agenda for a subsequent meeting.
Councilmember Harvell requested a future item from the Fire Department on vehicles, staffing,
and personal safety equipment for Fire Fighters.
Councilmember Harvell requested a future item from the Police Department on vehicles,
equipment, and staffing levels.
7. Adjournment.
There being no further business, Mayor Mooney adjourned the Regular Meeting of the City
Council at 9:00 p.m. on Thursday, April 12, 2018.
________________________
Karl Mooney, Mayor
ATTEST:
___________________________
Tanya Smith, City Secretary
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0259 Name:Agreement with the Brazos Valley Umpires
Association
For Officiating Services for City Athletic Leagues
and Programs
Contract #18300369
Status:Type:Contract Consent Agenda
File created:In control:4/6/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding the Agreement for Services with the Brazos
Valley Softball Umpires Association to provide officiating services for City athletic leagues, programs
and tournaments (Contract Number 18300369) in an amount not to exceed $125,000 per year.
Sponsors:Kelly Kelbly
Indexes:
Code sections:
Attachments:
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding the Agreement for Services with the Brazos
Valley Softball Umpires Association to provide officiating services for City athletic leagues, programs
and tournaments (Contract Number 18300369) in an amount not to exceed $125,000 per year.
Relationship to Strategic Goals:
1.Financially Sustainable City
2.Core Services and Infrastructure
3.Sustainable City
Recommendation(s):Staff recommends approving the Agreement for Services with the Brazos
Valley Softball Umpires Association.
Summary:This Contract Number 18300369 is for a period of one (1) year (26 March 2018 - 26
March 2019).
The contract is for the provision of all officiating services for all City-operated athletic leagues and
programs, including Adult and Youth Softball, Adult and Youth Flag Football, Adult and Youth
Volleyball, Youth Basketball, and Adult Kickball, as well as tournament play. This blanket contract
sets rates for these sports that can cover league play and tournaments, if held.
Payment for umpire services is made to the Association, prior to each season based on the
scheduled games, who then pays the individual umpires for actual games called. A “true up” is
calculated at the end of each season to verify actual games called with the Association and the Parks
and Recreation Department. Tournaments are handled individually in the same manner.
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File #:18-0259,Version:1
This Agreement for Services is exempt from competitive bidding in accordance with LGC 252.022(a)
(7), a procurement that is available from only one source.
Budget & Financial Summary:This contract is not to exceed $125,000.00. Funds are budgeted
through the Parks and Recreation Departments General Fund, Recreation Fund and Hotel
Occupancy Tax budgets.
Attachment: Contract on file
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City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0261 Name:Facility Corrective Maintenance Contract
Status:Type:Contract Consent Agenda
File created:In control:4/8/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion on approving job order construction contract #18300449
for various facilities corrective maintenance services from Jamail & Smith Construction, LP in the
amount of $346,260.81. Contract pricing is available from Jamail & Smith Construction, LP through
Buy Board contract #464-14.
Sponsors:Donald Harmon
Indexes:
Code sections:
Attachments:
Action ByDate Action ResultVer.
Presentation,possible action,and discussion on approving job order construction contract
#18300449 for various facilities corrective maintenance services from Jamail &Smith Construction,
LP in the amount of $346,260.81.Contract pricing is available from Jamail &Smith Construction,LP
through Buy Board contract #464-14.
Relationship to Strategic Goals:
·Core Services and Infrastructure
Recommendation(s): Staff recommends approval of job order construction contract #18300449 for
various facilities corrective maintenance services from Jamail & Smith Construction, LP in the amount
of $346,260.81.
Summary:In August of 2013,Faithful+Gould,Inc.conducted a site visit at the City of College Station
to complete a comprehensive facilities condition assessment of 36 building and site systems.This
corrective maintenance job order contract addresses recommendations in the condition assessment
for fiscal year 2018.The projects included in this contract are repairs and painting of the Utility
Service Center,Fire Station No.1 interior repairs and painting,and repairs and painting of the Wolf
Pen Creek Park Amphitheater.The Texas Comptroller of Public Accounts (CPA)has established use
of Buy Board contracts as an alternative purchasing method available to governmental agencies and
members of the CPA co-operative purchasing network.
Budget &Financial Summary:Funds are available in the Facility Maintenance budget for the
corrective maintenance projects for painting at the listed facilities in the amount of $346,260.81
Attachments:
1. Contract on file in the City Secretary's office
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File #:18-0261,Version:1
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City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0262 Name:River Bend Elementary Interlocal Agreement
Status:Type:Agreement Consent Agenda
File created:In control:4/8/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion on an Interlocal Agreement between the City of College
Station and College Station Independent School District for the cost participation by College Station
Independent School District in the City’s Holleman Drive South Widening Project. CSISD will be
reimbursing the City for actual costs of the deceleration lane, traffic signal improvements, and
necessary utility relocations up to $395,500 for improvements related to the new River Bend
Elementary School.
Sponsors:Donald Harmon
Indexes:
Code sections:
Attachments:signed by CSISD Holleman ILA
Action ByDate Action ResultVer.
Presentation, possible action, and discussion on an Interlocal Agreement between the City of College
Station and College Station Independent School District for the cost participation by College Station
Independent School District in the City’s Holleman Drive South Widening Project. CSISD will be
reimbursing the City for actual costs of the deceleration lane, traffic signal improvements, and
necessary utility relocations up to $395,500 for improvements related to the new River Bend
Elementary School.
Relationship to Strategic Goals:
·Core Services and Infrastructure
·Improving Mobility
Recommendation(s): Staff recommends approval of the agreement.
Summary: The Holleman Drive South Widening Project (Project) will reconstruct Holleman from North
Dowling to Rock Prairie West, approximately 8,300 linear feet. The improvements will include
replacement of the existing two-lane asphalt pavement with a four-lane concrete section plus a
median/center turn lane, curb, gutter and underground storm sewer, a sidewalk along west side and
multi-use path along the east side.
Due to the traffic impact of River Bend Elementary, currently under construction, the following items
were added to the scope of the Project: a traffic signal at the school’s driveway on Holleman Drive,
additional pavement for a right-turn deceleration lane into the school, and the associated utility
relocations. CSISD will be participating in the Project for the cost of these improvements.
Budget & Financial Summary: Budget in the amount of $10,680,000 is included for this project in the
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File #:18-0262,Version:1
Streets Capital Improvement Projects Fund. CSISD will be reimbursing the City for actual costs of the
deceleration lane, traffic signal improvements, and necessary utility relocations up to $395,500.
Attachments:
1.Agreement
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City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0263 Name:Northeast Sanitary Sewer Trunk Line Phase 2
Design Contract
Status:Type:Contract Consent Agenda
File created:In control:4/8/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding approval of a professional services contract
(Contract No. 18300430) with Kimley-Horn and Associates, Inc. in the amount of $312,000 for the
design and construction phase services for the Northeast Sanitary Sewer Trunk Line Phase 2 Project
and a Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds From Debt.
Sponsors:Donald Harmon
Indexes:
Code sections:
Attachments:Project Location Map
NE Sewer Trunkline Phase 2 - DRR
Resolution for debt .pdf
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding approval of a professional services contract
(Contract No. 18300430) with Kimley-Horn and Associates, Inc. in the amount of $312,000 for the
design and construction phase services for the Northeast Sanitary Sewer Trunk Line Phase 2 Project
and a Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds From Debt.
Relationship to Strategic Goals:
·Core Services and Infrastructure
Recommendation(s): Staff recommends approval of the professional services contract and
recommends approval of the resolution declaring intention to reimburse certain expenditures with
proceeds from debt.
Summary: The scope of this contract includes surveying, sanitary sewer design, geotechnical and
subsurface utility engineering investigation services, bid phase services, construction phase services,
and construction materials testing. The Northeast Sanitary Sewer - Phase 2 Trunk Line Project
involves the design of approximately 4,500 linear feet of 48-inch sanitary sewer line on city property
and within easements on private property located on the east side of State Highway 6 and the
Raintree Subdivision. The scope of the project extends from the north end of Carter’s Creek
Wastewater Treatment Plant (CCWWTP) along the existing sanitary sewer alignment to the
downstream end of the recently completed Northeast SS Trunk Line - Phase 1 due east of Raintree
Park. The purpose of this replacement is to increase capacity while also relocating the proposed line
further away from the wandering and erosive Carter’s Creek.
Budget &Financial Summary:The project and a budget of $2,840,000 are included in the FY18
Wastewater Capital Improvement Projects (CIP)Fund.The “Resolution Declaring Intention to
College Station, TX Printed on 4/20/2018Page 1 of 2
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File #:18-0263,Version:1
Wastewater Capital Improvement Projects (CIP)Fund.The “Resolution Declaring Intention to
Reimburse Certain Expenditures with Proceeds from Debt”is necessary for this item because a
portion of the long term debt has not been issued for the project.The balance of the debt needed for
the project is scheduled to be issued later this fiscal year and future year(s).
Attachments:
1.)Contract - On file in the City Secretary’s Office
2.)Project Location Map
3.)Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds from Debt
College Station, TX Printed on 4/20/2018Page 2 of 2
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Project Location MapNortheast Sewer Trunk LinePhase 2±
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Created: 3/26/2018
0 800 1,600 2,400 3,200 4,000200400600FeetFeet
Overview Map
DISCLAIMER: This product is for informational purposes and may not have been prepared for or besuitable for legal, engineering, or surveying purposes. It does not represent an on-the-ground surveyand represents only the approximate relative location of property boundaries. No warranty is made bythe City of College Station regarding specific accuracy or completeness.
RESOLUTION NO. _________________
RESOLUTION DECLARING INTENTION TO REIMBURSE CERTAIN EXPENDITURES WITH
PROCEEDS FROM DEBT
WHEREAS, the City of College Station, Texas (the "City") is a home-rule municipality and
political subdivision of the State of Texas;
WHEREAS, the City expects to pay expenditures in connection with the design, planning,
acquisition and construction of the projects described on Exhibit "A" hereto (collectively, the "Project")
prior to the issuance of obligations by the City in connection with the financing of the Project from available
funds;
WHEREAS, the City finds, considers, and declares that the reimbursement of the City for the
payment of such expenditures will be appropriate and consistent with the lawful objectives of the City and,
as such, chooses to declare its intention, in accordance with the provisions of Section 1.150-2 of the
Treasury Regulations, to reimburse itself for such payments at such time as it issues obligations to finance
the Project;
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STAT ION, TEXAS THAT:
Section 1. The City reasonably expects it will incur debt, as one or more series of obligations,
with an aggregate maximum principal amount not to exceed $3,000,000, for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No tax-exempt
obligations will be issued by the City in furtherance of this Statement after a date which is later than 18
months after the later of (1) the date the expenditures are paid or (2) the date on which the property, with
respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no tax-exempt obligation will be issued pursuant to
this Statement more than three years after the date any expenditure which is to be reimbursed is paid.
PASSED AND APPROVED THIS 26th DAY OF April, 2018.
_______________________________
Karl Mooney, Mayor
ATTEST:
_________________________________
Tanya Smith, City Secretary (Seal)
Exhibit "A"
The projects to be financed that are the subject of this Statement are:
Northeast Sanitary Sewer Trunk Line Phase 2
The project is for the Northeast Sanitary Sewer - Phase 2 Trunk Line Project. This project involves the
design and construction of approximately 4,500 linear feet of 48-inch sanitary sewer line on city property
and within easements on private property located on the east side of State Highway 6 and the Raintree
Subdivision. The scope of the project extends from the north end of Carter’s Creek Wastewater Treatment
Plant (CCWWTP) along the existing sanitary sewer alignment to the downstream end of the recently
completed Northeast Sanitary Sewer Trunk Line - Phase 1 due east of Raintree Park. The purpose of this
replacement is to increase capacity while also relocating the proposed line further away from the
wandering and erosive Carter’s Creek.
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0264 Name:Traffic Control Center Backup Generator
Status:Type:Contract Consent Agenda
File created:In control:4/8/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding approval of the construction contract
(18300375) with C. F. McDonald Electric, Inc in the amount of $171,469 for the Municipal Court/Traffic
Control Center Backup Generator Project.
Sponsors:Donald Harmon
Indexes:
Code sections:
Attachments:Project Map
Tabulation
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding approval of the construction contract
(18300375) with C. F. McDonald Electric, Inc in the amount of $171,469 for the Municipal
Court/Traffic Control Center Backup Generator Project.
Relationship to Strategic Goals:
·Core Services and Infrastructure
·Improving Mobility
Recommendation(s): Staff recommends approval of the construction contract with C. F. McDonald
Electric, Inc.
Summary: This project includes the installation of a generator that will back up the traffic control
center and traffic video servers at the Municipal Court Building. Due to the complexity and high cost
of breaking out just the traffic control center it was determined that the building would be backed up at
the main power source.
Budget & Financial Summary: Budget in the amount of $218,000 is included for this purchase as part
of the Intelligent Transportation System (ITS) implementation project. Design and construction costs
will be reimbursed by the Texas Transportation Institute once construction is completed.
Attachments:
1.Contract on file in the City Secretary’s Office
2.Bid Tabulation
3.Project Map
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DARTMOUTHST
0 1,000500Feet
N
This product is for informational purposes only and has not been prepared for and is not suitable for legal, engineering, construction, or surveying purposes. It does not represent an on-the-ground survey and represents only the approximate relative location of certain geographic features. No warranty, expressed or implied, is made by the City of College Station as to the accuracy, completeness, suitability, or timeliness of the information contained herein.The City of College Station assumes no responsibility for any private or commercial use, misuse, reliance, or interpretation of the information provided herein, or any loss resulting therefrom.
City of College Station - Purchasing Division
Bid Tabulation for #18-063
"Municipal Court Building Backup Generator"
Open Date: Thursday, March 16, 2018 @ 2:00 p.m.
Item
No.Unit No.Description Unit Estimate
Quantity Unit Price Total Extended Price Total Unit Price Total Extended Price Total Unit Price Total Extended Price Total
A-1 UMOB
Mobilization, Insurance, Bonds and Move-In
Related Expenses not to exceed 10% of Total
Bid. See Section 01 07 13 Of The B/CS
Unified Specifications For Unit Description
LS 1 $16,000.00 $16,000.00 $17,021.00 $17,021.00
A-2 UM50-P-4D
Furnish and install 5-4" schedule 40 PVC
conduits including excavation, sand backfill,
warning tape and natural fill, as shown on
Drawings MEI-12998-02 and MEI-12998-03.
Excavation, backfill and compaction to be in
accordance to the B/CS Unified Specifications
Section 31 23 33. To inculde all materials,
labor and equipment to complete the work
LF 40 $25.00 $1,000.00 $117.00 $4,680.00
A-3 UM50-P-4" 90
Furnish and install 4" schedule 40 PVC 90
degree bend with 4' radius, including
excavation, sand backfill, warning tape and
natural fill, as shown on Drawings MEI-12998-
02 and MEI-12998-03. Excavation, backfill
and compaction to be in accordance to the
B/CS Unified Specifications Section 31 23 33.
To include all materials, labor and equipment
to complete the work.
EA 30 $100.00 $3,000.00 $88.00 $2,640.00
A-4 UD 600 MCM
Cu 600V
Furnish and install four (4) 600 MCM Cu 600V
each in 1-4" PVC conduit. See 600 Volt
Cable Installation on Page 32 of
Specifications.To include all materials, labor
and equipment to complete the work.
LF 315 $30.00 $9,450.00 $72.00 $22,680.00
A-5 175 kW Gen
Set
Furnish and install (1) one three-phase,
480Y/277 Volt, 175 kW Generator. See
Generator Installation on Page 8 of
Specifications. To include all materials, labor
and equipment to complete the work.
EA 1 $95,483.00 $95,483.00 $81,273.00 $81,273.00
A-6 1600 Amp ATS
Furnish and install (1) one three-phase
480Y/277 Volt, 1600 Amp Automatic Transfer
Switch. See Automatic Transfer Switch
installation on Page 33 of Specifications.
ASCO Catalog No. G3AUSA31600NGXM-
11BE-44G or equal.To include all materials,
labor and equipment to complete the work.
EA 1 $20,000.00 $20,000.00 $23,222.00 $23,222.00
A-7 Backup
Generator Pad
Furnish and install (1) one concrete pad for
generator as shown in detail on Drawing MEI-
12998-05.To include all materials, labor and
equipment to complete the work.
EA 1 $18,000.00 $18,000.00 $10,054.00 $10,054.00
A-8 ATS Pad
Furnish and install (1) one concrete pad for
Automatic Transfer Switch as shown in detail
on Drawing MEI-12998-06.To include all
materials, labor and equipment to complete
the work.
EA 1 $2,500.00 $2,500.00 $4,486.00 $4,486.00
A-9 River Rock In
Fill
Furnish and install a river rock in fill area as
shown in detail on Drawing MEI-12998-07. To
include all materials, labor and equipment to
complete the work.
Sq FT 634 $2.00 $1,268.00 $6.50 $4,121.00
A-10 Commissioning Commissioning of generator and ATS LS 1 $500.00 $500.00 $9,412.00 $9,412.00
A-11 Site Work Removal of vegetation and soil preparation Sq FT 634 $2.00 $1,268.00 $7.00 $4,438.00
Britt Rice Electric, L.P.
$184,027.00
Generator Power Systems/Fish
Electric
Bid Withdrawn for Material
Purposes
Group A
Unit Price Schedule For
Municipal Courts Building
Emergency Backup Generator
C.F. McDonald Electric, Inc.
TOTAL FOR GROUP A $168,469.00
City of College Station - Purchasing Division
Bid Tabulation for #18-063
"Municipal Court Building Backup Generator"
Open Date: Thursday, March 16, 2018 @ 2:00 p.m.
Item
No.Unit No.Description Unit Estimate
Quantity Unit Price Total Extended Price Total Unit Price Total Extended Price Total Unit Price Total Extended Price Total
A-1
(Alt)UMOB
Mobilization, Insurance, Bonds and Move-In
Related Expenses not to exceed 10% of
Total Bid. See Section 01 07 13 Of The B/CS
Unified Specifications For Unit Description
LS 1 $16,000.00 $16,000.00 $17,021.00 $17,021.00
A-2
(Alt)UM50-P-4D
Furnish and install 5-4" schedule 40 PVC
conduits including excavation, sand backfill,
warning tape and natural fill, as shown on
Drawings MEI-12998-02 and MEI-12998-03.
Excavation, backfill and compaction to be in
accordance to the B/CS Unified
Specifications Section 31 23 33.To include all
materials, labor and equipment to complete
the work.
LF 40 $25.00 $1,000.00 $117.00 $4,680.00
A-3
(Alt)UM50-P-4" 90
Furnish and install 4" schedule 40 PVC 90
degree bend with 4' radius, including
excavation, sand backfill, warning tape and
natural fill, as shown on Drawings MEI-12998-
02 and MEI-12998-03. Excavation, backfill
and compaction to be in accordance to the
B/CS Unified Specifications Section 31 23
33. To include all materials, labor and
equipment to complete the work.
EA 30 $100.00 $3,000.00 $88.00 $2,640.00
A-4
(Alt)
UD 600 MCM
Cu 600V
Furnish and install four (4) 600 MCM Cu
600V each in 1-4" PVC conduit. See 600
Volt Cable Installation on Page 32 of
Specifications. To include all materials, labor
and equipment to complete the work.
LF 315 $30.00 $9,450.00 $72.00 $22,680.00
A-5
(Alt)
200 kW Gen
Set
Furnish and install (1) one three-phase,
480Y/277 Volt, 200 kW Generator. See
Generator Installation on Page 8 of
Specifications. To include all materials, labor
and equipment to complete the work.
EA 1 $98,483.00 $98,483.00 $83,991.00 $83,991.00
A-6
(Alt)1600 Amp ATS
Furnish and install (1) one three-phase
480Y/277 Volt, 1600 Amp Automatic Transfer
Switch. See Automatic Transfer Switch
installation on Page 33 of Specifications.
ASCO Catalog No. G3AUSA31600NGXM-
11BE-44G or equal.
EA 1 $20,000.00 $20,000.00 $23,222.00 $23,222.00
A-7
(Alt)
Backup
Generator Pad
Furnish and install (1) one concrete pad for
generator as shown in detail on Drawing MEI-
12998-05. To include all materials, labor and
equipment to complete the work.
EA 1 $18,000.00 $18,000.00 $10,054.00 $10,054.00
A-8
(Alt)ATS Pad
Furnish and install (1) one concrete pad for
Automatic Transfer Switch as shown in detail
on Drawing MEI-12998-06. To include all
materials, labor and equipment to complete
the work.
EA 1 $2,500.00 $2,500.00 $4,486.00 $4,486.00
A-9
(Alt)
River Rock In
Fill
Furnish and install a river rock in fill area as
shown in detail on Drawing MEI-12998-07.
To include all materials, labor and equipment
to complete the work.
Sq FT 634 $2.00 $1,268.00 $6.50 $4,121.00
A-10
(Alt)Commissioning Commissioning of generator and ATS LS 1 $500.00 $500.00 $9,412.00 $9,412.00
A-11
(Alt)Site Work Removal of vegetation and soil preparation Sq FT 634 $2.00 $1,268.00 $7.00 $4,438.00
Britt Rice Electric, L.P.
$186,745.00
Generator Power Systems/Fish
Electric
Bid Withdrawn for Material
Purposes
Group A Alternate
Unit Price Schedule For
Municipal Courts Building
Emergency Backup Generator
C.F. McDonald Electric, Inc.
TOTAL FOR GROUP A Alternate $171,469.00
City of College Station - Purchasing Division
Bid Tabulation for #18-063
"Municipal Court Building Backup Generator"
Open Date: Thursday, March 16, 2018 @ 2:00 p.m.
C.F. McDonald Electric, Inc.Britt Rice Electric, L.P.Generator Power
Systems/Fish Electric
$168,469.00 $184,027.00
$171,469.00 $186,745.00
Y Y
Acknowledged, not signed Acknowledged, not signed
Y Y
See Below Note*NNotes/Exceptions
* Includes 5 year preventative maintenance agreement as recommended by the generator manufacturer. Deduct $7,000 if the preventative maintenance
agreement is not required. Prices do not include a load bank, as one is not shown on the drawings. Add $20,000 if one is required.
Bid Withdrawn for Material
Purposes
Bid Summary
Group A Total
Group A Alternate Total
Bid Certification
Addendum Acknowledged
Bid Bond
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0269 Name:License to Encroachment – 5116 Sycamore Hills
Drive
Status:Type:Resolution Consent Agenda
File created:In control:4/10/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding approval of a resolution authorizing a License
Agreement with Thomas and Stephanie Adams for the encroachment of a portion of an underground
pool structure located at Lot 26, Block 30, Phase 9A, Pebble Creek Subdivision.
Sponsors:Carol Cotter
Indexes:
Code sections:
Attachments:VICINITY MAP
LOCATION MAP
Resolution.pdf
License Agreement (Exhibit A).pdf
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding a Resolution authorizing a License
Agreement with Thomas and Stephanie Adams pertaining to the approximately 31 square foot
encroachment in to the public utility easement of a portion of a underground pool located at Lot 26,
Block 30, Phase 9A, Pebble Creek Subdivision, according to the plat recorded in Volume 4651, Page
152 of the Official Records of Brazos County, Texas.
Relationship to Strategic Goals:
·Good Governance
·Core Services and Infrastructure
Recommendation(s):
Summary: Staff recommends approval of the resolution granting the license to encroach.
Budget & Financial Summary: N/A
Attachments:
1.Vicinity Map
2.Location Map
3.Resolution
4.Exhibit A
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RESOLUTION NO.___________
A RESOLUTION MAKING CERTAIN FINDINGS OF FACT AND AUTHORIZING THE
MAYOR OF THE CITY OF COLLEGE STATION TO EXECUTE A LICENSE
AGREEMENT BETWEEN THE CITY OF COLLEGE STATION AND APPLICANT,
THOMAS AND STEPHANIE ADAMS PERTAINING TO THE ENCROACHMENT OF AN
UNDERGROUND POOL STRUCTURE LOCATED AT LOT 26, BLOCK 30, PEBBLE
CREEK SUBDIVISION, PHASE 9A, MORE COMMONLY KNOWN AS 5116 SYCAMORE
HILLS DRIVE, INTO THE PUBLIC UTILITY EASEMENT.
WHEREAS, the City of College Station, has received an appli cation for a license to encroach
into a utility easement;
WHEREAS, the City of College Station has enacted Ordinance No. 1645 regulating, controlling
and governing encroachments;
WHEREAS, in order for a license to be granted by the City Council of the Ci ty of College
Station, the Council must make certain findings of facts;
WHEREAS, after hearing the application of Thomas and Stephanie Adams to encroach into the
easement, the City Council of the City of College Station, finds the following facts:
1. That through no fault of the present property owner, a portion of the structure was
constructed in the utility easement.
2. That there are no utilities which would be interfered with by the utilization of the
property in its present status.
3. That the structure intrudes into the easement to such a degree that it is not
economically feasible to remove the part of the structure within the easement.
4. That the land use in the neighborhood appears to be stable and the use to which
this property is being put is not likely to change within the foreseeable future and
is similar to the use to that of the neighborhood;
WHEREAS, the City Council after hearing the application and finding the specific facts as stated
above now concludes and finds that:
1. The fact that the structure was constructed within the easement through no fault of
the present property owner and that it is not economically feasible to remove the
part of the structure within the easement area does constitute special
circumstances and conditions affecting the property which if not taken into
consideration would deprive the applicant of the reasonable use of his property.
2. The fact that the land use is not likely to change within the foreseeable future and
that it is not economically feasible to remove the part of the structure within the
easement does provide a basis for granting the license necessary for the
preservation and enjoyment of the substantial property right of the applicant.
3. The fact that the use of the easement area by the property owner does not interfere
with the utilities or access to the utilities and is not detrimental to the public
health, safety or welfare or injurious to the property in the area; and
Resolution No.____________ Page 2 of 6
WHEREAS, the applicant agrees to accept the terms of the License Agreement as presented to
him; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION:
I.
That the Mayor is hereby authorized to execute on behalf of the City of College Station a
License Agreement with Thomas and Stephanie Adams pertaining to the encroachment of a
portion of a structure located at Lot 26, Block 30, Pebble Creek Subdivision, Phase 9A, more
commonly known as 5116 Sycamore Hills Drive into the easement area. The terms of said
License Agreement are as set forth in the form which is attached hereto as Exhibit "A" and
incorporated herein by reference for all purposes.
II.
That this resolution shall be effective immediately upon adoption.
PASSED and APPROVED this 26th day of April, 2018.
ATTEST: APPROVED:
____________________________ ___________________________________
City Secretary Mayor
APPROVED:
____________________________
City Attorney
Exhibit A
LICENSE AGREEMENT
THE STATE OF TEXAS *
* KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF BRAZOS *
That the City of College Station (hereinafter referred to as "LICENSOR"), acting through the
undersigned official who is so empowered by resolution of the City Council to so act in
consideration of the agreement made herein by Thomas and Stephanie Adams (hereinafter referred
to as "LICENSEE"), owner of Lot 26, Block 30, Phase 9A, Pebble Creek Subdivision, College
Station, Texas, according to the plat recorded in Volume 4651, Page 152 of the Official Records of
Brazos County, Texas, hereby grants a license to the said LICENSEE to permit a portion of a
structure located on a portion of Lot 26, Block 30, Phase 9A, Pebble Creek Subdivision, College
Station, Texas, to encroach upon the easement, as shown on Exhibit "A" attached hereto and
incorporated herein by reference for all purposes, owned and occupied by the City of College
Station, Brazos County, Texas, but such improvements shall be at all times under and not in contact
with any electric, water, sewer, or other utility, or equipment, or interfere in any way with such
utility, including any drainage structures which are servicing the improvements and other property,
and subject to the following terms and conditions:
Neither the granting of the license, nor any related permit, constitutes an abandonment by
LICENSOR of its property, easement or easements, or any other rights in and to the above-
described property. LICENSEE expressly stipulating and agreeing by LICENSEE's acceptance of
this license that LICENSEE neither asserts nor claims any interest or right of any type or nature
whatsoever, legal, equitable or otherwise in or to LICENSOR's property.
LICENSEE hereby expressly covenants, stipulates and agrees, without limitation, to indemnify and
defend the LICENSOR and hold it harmless from any and all liability, claim, cause of action, and
cost, including attorneys' fee, and including any acts or omissions of the LICENSOR, its officers,
agents, and employees, which may grow out of or be attributable to the granting by the LICENSOR
of said license and any supplemental license which may hereafter be issued in connection herewith
including any inspections which may be conducted in connection with or pursuant to said license or
any supplemental license.
LICENSEE, at its own expense, shall restore or cause to be restored the subject property to as good
a condition as existed prior to construction of the improvements which are the subject of this
License Agreement. LICENSEE shall pay all costs of relocation of any public utilities or facilities
that may be incurred as a result of the proposed construction or actual construction.
LICENSEE agrees to comply with all laws and ordinances in the construction and maintenance of
said improvements.
LICENSOR retains the right, but not the obligation, to enter upon the land to which this license
applies and at LICENSEE's expense to remove any structure or improvements or alterations
thereon upon the determination by LICENSOR that such removal is necessary for exercising
LICENSOR's rights or duties in regard to said easement, or for protecting persons or property, or
public interest in regard to said easement.
This license, until its expiration or revocation, shall run with the title to the above-described real
property, and the terms and conditions hereof shall be binding upon subsequent owners or holders
thereof. LICENSEE shall cause any immediate successors in interest to have factual notice of this
License Agreement.
This license shall expire automatically upon removal of the improvements located upon the property
pursuant to this license, and shall expire as to any portion of said improvements upon the removal,
whether or not all of the proposed improvements are removed.
This license is revocable by the LICENSOR upon the occurrence of any of the following conditions
or events:
A. LICENSEE or its successors or assigns have failed to comply with the terms of the
granting of the license; or
B. The improvements located thereon or any portion of them interfere with the rights
of the LICENSOR or the public in or to LICENSOR's property; or
C. The use of the licensed area becomes necessary for a public purpose; or
Resolution No. _________________Page 3 of 7
D. Said improvements or a portion of them constitute a danger to the public which is
not remediable by maintenance or alteration of the said improvements; or
E. Said improvements or a portion of them have expanded beyond the scope of the
license; or
F. Maintenance or alteration necessary to alleviate danger to the public has not been
made within a reasonable time after the dangerous condition has arisen.
This license shall be effective upon the acceptance of the terms hereof by the LICENSEE, as
indicated by the signature of LICENSEE.
The license shall be filed of record in the Official Records of the County Clerk of the Brazos County
Courthouse.
APPROVED this the ________ day of ______________________, 2018.
APPROVED: APPROVED:
THOMAS ADAMS CITY OF COLLEGE STATION,
LICENSEE LICENSOR
BY:______________________________ BY:________________________________
Thomas Adams Mayor
STEPHANIE ADAMS ATTEST:
LICENSEE
BY:______________________________ BY:_________________________________
Stephanie Adams City Secretary
STATE OF TEXAS )
) CORPORATE ACKNOWLEDGMENT
COUNTY OF BRAZOS )
This instrument was acknowledged before me on the _____ day of _______________________,
2018, by ______________________ as __________________ of ________________________,
on behalf of said ____________________.
____________________________________
Notary Public in and for the State of Texas
STATE OF TEXAS )
) CORPORATE ACKNOWLEDGMENT
COUNTY OF BRAZOS )
This instrument was acknowledged before me on the _____ day of _______________________,
2018, by ______________________ as __________________ of ________________________,
on behalf of said ____________________.
____________________________________
Notary Public in and for the State of Texas
Resolution No. _________________Page 4 of 7
STATE OF TEXAS )
) CORPORATE ACKNOWLEDGMENT
COUNTY OF BRAZOS )
This instrument was acknowledged before me on the _____ day of ________________, 2018, by
___________________________________, as Mayor of the City of College Station, a Texas
Municipal Corporation, on behalf of said Corporation.
____________________________________
Notary Public in and for
the State of Texas
RETURN ORIGINAL DOCUMENT TO:
City of College Station
Legal Department
P.O. Box 9960
College Station, Texas 77842-9960
Resolution No. _________________Page 5 of 7
Exhibit Ato the License AgreementResolution No. _________________Page 6 of 7
Resolution No. _________________Page 7 of 7
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0283 Name:First Lease Amendment for 511 University
Status:Type:Contract Consent Agenda
File created:In control:4/16/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding the first lease amendment with JAR Capital
Investments, LLC amending the original lease (16300284) extending lease term for two years for
leased space at 511 University Drive East.
Sponsors:Aubrey Nettles
Indexes:
Code sections:
Attachments:Lease Extension
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding the first lease amendment with JAR Capital
Investments, LLC amending the original lease (16300284) extending lease term for two years for
leased space at 511 University Drive East.
Relationship to Strategic Goals:
·Good Governance
Recommendation(s): staff recommends approval of the lease amendment.
Summary: The original lease between JAR Capital Investments, LLC and the City of College Station
is a three year lease beginning July 1, 2016 and expiring July 31, 2019. Based on the anticipated
schedule of the construction of our new police facility, along with the time staff estimates we will need
for the renovation of the current police facility, we are proposing a two year extension to the current
lease.
Budget & Financial Summary:
Months 01 thru 12: $9,448.50 per month ($18.00 / sq. ft. per year)
Months 13 thru 24: $9,731.96 per month ($18.54 / sq. ft. per year)
Months 25 thru 36: $10,020.66 per month ($19.09 / sq. ft. per year)
Months 37 thru 48: $10,321.28 per month ($19.66 / sq. ft. per year)
Months 49 thru 60: $10,629.46 per month ($20.25 / sq. ft. per year)
Attachments: First Lease Amendment
College Station, TX Printed on 4/20/2018Page 1 of 2
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City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0284 Name:Budget Disposal d/b/a Premier Metal Buyers
Commercial and Multi-Family Recycling Franchise
Agreement
Status:Type:Franchises Consent Agenda
File created:In control:4/16/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion on the second reading of a franchise agreement with
Budget Disposal d/b/a Premier Metal Buyers, for the collection of recyclables from commercial
businesses and multi-family locations.
Sponsors:Donald Harmon
Indexes:
Code sections:
Attachments:Premier Metal Buyers Franchise Agreement
Action ByDate Action ResultVer.
Presentation,possible action,and discussion on the second reading of a franchise agreement with
Budget Disposal d/b/a Premier Metal Buyers,for the collection of recyclables from commercial
businesses and multi-family locations.
Relationship to Strategic Goals:
·Core Services and Infrastructure
Recommendation(s): Staff recommends approval of this franchise agreement.
Summary:The proposed agreement would allow Budget Disposal d/b/a Premier Metal Buyers to
collect recyclables from commercial businesses and multi-family locations within the City of College
Station.
Budget & Financial Summary: N/A
Attachments:
1. Franchise Ordinance
College Station, TX Printed on 4/20/2018Page 1 of 1
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Recyclable Collection Franchise Ordinance Page 1 of 17
ORDINANCE NO.
RECYCLABLES COLLECTION FRANCHISE AGREEMENT
AN ORDINANCE GRANTING CONTRACTOR, BUDGET DISPOSAL D/B/A
PREMIER METAL BUYERS, ITS SUCCESSORS AND ASSIGNS, A NON-EXCLUSIVE
FRANCHISE FOR THE PRIVILEGE AND USE OF PUBLIC STREETS, ALLEYS, AND
PUBLIC RIGHTS OF WAY WITHIN THE CORPORATE LIMITS OF THE CITY OF
COLLEGE STATION (“CITY”) FOR THE PURPOSE OF PROVIDING COLLECTION
OF CONSTRUCTION AND DEMOLITION DEBRIS FROM RESIDENTIAL SITES,
RECYCLABLES AND RECYCLABLE CONSTRUCTION AND DEMOLITION DEBRIS
FROM COMMERCIAL BUSINESSES AND MULTIFAMILY RESIDENCES;
PRESCRIBING THE TERMS, CONDITIONS, OBLIGATIONS, AND LIMITATIONS
UNDER WHICH SAID FRANCHISE SHALL BE EXERCISED; PROVIDING FOR THE
CONSIDERATION; FOR THE PERIOD OF THE GRANT; FOR ASSIGNMENT; FOR
THE METHOD OF ACCEPTANCE; FOR REPEAL OF CONFLICTING ORDINANCES;
FOR PARTIAL INVALIDITY.
WHEREAS, the City, by ordinance, exclusively provides all solid waste collection and disposal
services for solid waste aggregated from within the City limits including, but not limited to
Recyclables; and
WHEREAS, the City pursuant to City Charter Article XI, may grant franchises to entities for use
of public streets, alleys, and highways for collection of Recyclables and Construction and
Demolition Debris generated in City limits; and
WHEREAS, the City of College Station desires to exercise the Charter’s authority and grant a
non-exclusive franchise to Contractor for collection of demolition and construction debris from
residential sites, collecting demolition and construction debris, recyclable materials, and organic
waste from multifamily and commercial locations for the purpose of recycling.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS,
Recyclable Collection Franchise Ordinance Page 2 of 17
Table of Contents
Article I. Definitions ...................................................................................................................... 3
Article II. Grant of Authority and Acceptance .............................................................................. 4
Article III. Payment and Term ....................................................................................................... 4
Article IV. Access to Records & Reporting ................................................................................... 5
Article V. Rates to be Charged by Contractor ............................................................................... 6
Article VI. Appearance of Personnel and Equipment .................................................................... 6
Article VII. Collection and Transport of Recyclables ................................................................... 7
Article VIII. Placement of Receptacles ......................................................................................... 7
Article IX. Service Complaints ...................................................................................................... 7
Article X. Disposal and Processing ............................................................................................... 8
Article XI. Violation and Penalty .................................................................................................. 8
Article XII. Insurance .................................................................................................................... 8
Article XIII. Indemnification and Release ..................................................................................... 9
Article XIV. Disputes and Mediation ............................................................................................ 9
Article XV. General Terms .......................................................................................................... 10
Exhibit A. Schedule of Rates ....................................................................................................... 14
Exhibit B. Insurance Requirements ............................................................................................. 15
I) Standard Insurance Policies Required: .............................................................................. 15
II) General Requirements Applicable to All Policies: ............................................................ 15
III) Commercial General Liability ........................................................................................ 15
IV) Business Automobile Liability ....................................................................................... 15
V) Workers’ Compensation Insurance ................................................................................ 16
Exhibit C. Certificates of Insurance ............................................................................................. 17
Recyclable Collection Franchise Ordinance Page 3 of 17
ARTICLE I. DEFINITIONS
1.1 Agreement means this Franchise Agreement adopted by City Ordinance between City and
Contractor for the collection of Recyclables within the City limits.
1.2 Approved Customers means those designated premises located within the City that
generate Recyclables.
1.3 Brazos Valley Solid Waste Management Agency, Inc. (BVSWMA, Inc.) means the
permitted municipal solid waste landfill and compost facility owned and operated by a
Texas local government corporation.
1.4 City Council or Council means the governing body of the City of College Station, Texas.
1.5 City means the City of College Station, a Texas Home Rule Municipal Corporation.
1.6 City's Representative means the Recycling & Environmental Compliance Manager or the
Manager’s designated appointee.
1.7 Collection means the scheduled aggregation of Recyclables by Contractor.
1.8 Construction and Demolition Debris means buildings material waste resulting from
demolition, remodeling, repairs, or construction, as well as materials discarded during
periodic temporary facility clean-up generated within the City.
1.9 Contaminated means Recyclables mixed with solid waste or altered in a way that results
in materials being unrecyclable or un-compostable.
1.10 Contractor means the Contractor franchised for the collection of Recyclables.
1.11 Customers means the locations designated by the City as a Commercial Business or
Multifamily Residence.
1.12 Organic Waste means waste of biological origin recovered from the solid waste stream
for the purposes of reuse, reclamation, or compost. Organic Waste is not solid waste,
unless it is abandoned or disposed of, rather than reprocessed into another product.
1.13 Receptacle means a weatherproof container easily identifiable and designated for
recycling or organic waste collection and shall not be made of any temporary materials.
1.14 Recyclables or Recyclable Materials mean materials, including construction and
demolition debris recovered from the solid waste stream for the purpose of reuse or
reclamation, a substantial portion of which are consistently used in the manufacture of
products that may otherwise be produced using raw or virgin materials. Recyclable
materials are not solid waste unless they are abandoned or disposed of as garbage rather
than reprocessed into another product.
Recyclable Collection Franchise Ordinance Page 4 of 17
1.15 Residue means the materials regularly associated with and attached to Recyclables, as a
part of the original packaging or usage of that material that is not recyclable or
compostable.
1.16 Roll-Off / Compactor means a container of varying capacity used for Recyclables
collection.
1.17 TAC means the Texas Administrative Code now and as amended.
1.18 TCEQ means the Texas Commission on Environmental Quality.
ARTICLE II. GRANT OF AUTHORITY AND ACCEPTANCE
2.1 Non-Exclusive. City grants Contractor a non-exclusive franchise to operate and establish
Recyclables collection from designated Customers. Nothing in this Agreement shall be
construed as granting an exclusive franchise or right. City grants Contractor passage and
rights-of-way on, along, and across City streets, highways, alleys, public places and all
other real property for collecting demolition and construction debris from commercial,
industrial, multifamily, and residential sites; as well as recyclables and organic waste from
commercial, industrial, and multifamily sites for the purpose of recycling within the
jurisdictional limits of the City. All collection, work, activity, and undertakings by
Contractor are subject to this Agreement and City’s governmental and police powers.
2.2 Acceptance. By accepting this Agreement, Contractor represents it has, by careful
examination, satisfied itself as to the nature and location of the services, character, quality,
and quantity of services to be performed, the character of the equipment and facilities
necessary to fulfill obligations under this Agreement, as well as the general and local
conditions and all other matters affecting services performed under this Agreement.
2.3 Option to Market Materials. If City develops services or programs resulting in materials
that may be recycled or composted, including but not limited to residential, multifamily, or
commercial recycling or composting, the City shall have the option to market those to any
contractor.
2.4 Contract with City. If City and Contractor contract for the collection and recycling or
composting of materials, those terms will be incorporated into this Agreement by
amendment.
ARTICLE III. PAYMENT AND TERM
3.1 Franchise Fee. For and in consideration of the grant of the franchise herein, Contractor
agrees and will pay a Franchise Fee during the term of this Agreement, a sum based on the
following graduated fee schedule depending on the percentage of aggregate recycling or
composting accomplished:
Recyclable Collection Franchise Ordinance Page 5 of 17
a. A fee is required, equivalent to five percent (5%) of Contractor's monthly gross
revenues, delivery revenues, and hauling revenues; including rates as described in
Exhibit A, generated from Contractor's provision of Recyclables collection
services within the City if Contractor reports aggregate recycling or composting of
at least sixty percent (60%) of Recyclables collected.
b. A fee is required, equivalent to six and one half percent (6.5%) of Contractor's
monthly gross revenues, delivery revenues, and hauling revenues; including rates
as described in Exhibit A, generated from Contractor’s provision of Recyclables
collection services within the City if Contractor reports aggregate recycling or
composting of at least fifty-five percent (55%) but less than sixty percent (60%) of
Recyclables collected.
c. A fee is required, equivalent to eight percent (8%) of Contractor's monthly gross
revenues, delivery revenues, and hauling revenues; including rates as described in
Exhibit A, generated from Contractor’s provision of Recyclables collection
services within the City if Contractor reports aggregate recycling or composting
less than fifty-five percent (55%) of Recyclables collected.
3.2 Payments. Revenue received by Contractor from this Agreement is subject to the
Franchise Fee and shall be computed into Contractor's monthly gross revenues, delivery
revenues, hauling revenues, and rates, as described in Exhibit A. Payment will be paid
quarterly to the City, and shall be due by the twentieth (20th) day of the month following
the end of the previous calendar quarter. Payment after that date shall incur a ten percent
(10%) late fee on the outstanding account balance under Article V.
3.3 Failure to Pay. Failure by Contractor to pay any amount due under this franchise
constitutes a Failure to Perform under this contract and is subject to the provisions of
Article XV. General Terms of this Agreement (Termination for Cause).
3.4 Franchise Fee Requirements. Payment s must state on a form approved by the City:
a. The number and type of Customers collected from, for the previous quarter, for
Customers included in this Agreement.
b. The total tons landfilled, recycled or composted, regardless of origin of collection,
for the previous quarter.
c. The total tons landfilled, recycled or composted, within the jurisdictional limits of
the City, for the previous quarter.
d. The total gross revenues for the previous calendar quarter, for revenues generated
under this agreement.
e. The total payment amount
3.5 Term. The term of this Agreement shall be for a period of five (5) years, beginning on the
date of acceptance and approval by City Council.
ARTICLE IV. ACCESS TO RECORDS & REPORTING
Recyclable Collection Franchise Ordinance Page 6 of 17
4.1 Facilities. The City shall have the right to inspect the Contractor’s facilities, equipment,
personnel, and operations to ensure compliance with this Agreement.
4.2 Records. The City shall have the right to inspect Contractor’s records, receipts, and all
documentation relating to the performance of this Agreement. Those records include, but
are not limited to, information concerning the quality and quantity of Recyclables
collected, processed, and sold; number of Customers served, gross amounts paid to and
paid by Contractor from the sale/processing of Recyclables. The City agrees to notify the
Contractor at least twenty-four (24) hours prior to such inspection of operations and/or
records.
4.3 Records Retention. Contractor shall retain all records associated with this Agreement for
a period of four (4) years. City shall have access to information regarding Contractor’s
markets and prices paid for each type of material’s return/cost; all information obtained by
City marked confidential or proprietary shall remain confidential or proprietary pursuant
to the Texas Open Records Act.
4.4 Activity Report. Contractor shall provide a Monthly Recycling Activity Report, on a form
approved by the City, summarizing the previous month’s collection. This report is due to
the City’s Representative no later than the twentieth (20th) calendar day of each month.
Contractor’s report shall include the following information:
a. The Customer collection count, itemized by customer type.
b. Total tonnage of Recyclables collected, recycled and/or composted, itemized by
type of material, regardless of origin of collection.
c. Total tonnage of Recyclables collected, recycled and/or composted, itemized by
type of material, within the jurisdictional limits of the City.
d. Total tonnage of Recyclables collected, but not recycled or composted due to
rejection and the disposition of those materials.
e. Any other information concerning the Recyclables collection as required by the
City’s Representative.
ARTICLE V. RATES TO BE CHARGED BY CONTRACTOR
5.1 The Contractor shall follow the Schedule of Rates attached hereto as Exhibit A for the
services described herein. The rates provided shall be kept current and made available to
the City’s Representative within thirty (30) days of an adopted rate change. The Contractor
agrees to use due diligence to keep costs from increasing.
ARTICLE VI. APPEARANCE OF PERSONNEL AND EQUIPMENT
6.1 Equipment. Contractor shall ensure all collection equipment and vehicles are attractively
painted, well maintained and are in good working condition. Equipment must be washed
at least one time per week. Equipment and vehicles must have sufficient carrying capacity
for safe and efficient Recyclables collection. The City shall have the right to inspect and
Recyclable Collection Franchise Ordinance Page 7 of 17
approve the appearance of collection equipment. A standby vehicle shall be available at
all times for Recyclables collection.
6.2 Signage. Contractor’s vehicles shall at all times be clearly labeled with Contractor’s name
and phone number in visible letters and numbers not less than three (3) inches in height.
Signage must be on both sides of the vehicle and placed in a conspicuous place. Only
labeled vehicles shall perform collection activities under this Agreement. Contractor’s
roll-offs, compactors, and receptacles must be clearly marked as used for Recyclables
collection in letters at least twelve inches (12”) in height on each side of the container.
6.3 Personnel. All collection personnel shall wear a City-approved uniform to include, at
minimum, matching labeled shirts with denim jeans or other standard work attire.
ARTICLE VII. COLLECTION AND TRANSPORT OF RECYCLABLES
7.1 Transport. The Contractor shall only transport collected Recyclables for storage,
processing, disposal, or other necessary handling to locations in a manner permitted by the
terms of this Agreement as well as federal, state, and local law. This Agreement does not
authorize Contractor to utilize the streets, alleys, and public ways to dispose of municipal
solid waste or any other type of waste intended for disposal from any other project.
7.2 Cover. During transport of Recyclables all vehicles shall be covered to prevent release of
litter.
ARTICLE VIII. PLACEMENT OF RECEPTACLES
8.1 Placement. All roll-offs, compactors, and receptacles placed in service shall be located in
such a manner so as not to be a safety or traffic hazard. Under no circumstances shall
Contractor place roll-offs, compactors, or receptacles on public streets, alleys, or
thoroughfares without prior approval of the City’s Representative. City reserves the right
to designate the exact location of any or all roll-offs, compactors, or containers placed in
service in the City.
8.2 City Collection. Recyclables collection shall not interfere with the City’s collection of
municipal solid waste. Under no circumstances shall contractor place roll-offs, compactors,
or receptacles in existing enclosures designated for City roll-offs, compactors, and
receptacles.
ARTICLE IX. SERVICE COMPLAINTS
9.1 Nature of Complaint. Contractor shall handle directly any complaints pertaining to
customer service, property damage, or personal injury from their commercial business and
multifamily Recyclables collection service.
Recyclable Collection Franchise Ordinance Page 8 of 17
9.2 Intake. Contractor shall develop written practices and procedures for receiving and
resolving Customer complaints and collection issues. Any complaint received by the City
shall be forwarded to the Contractor within one (1) business day of receipt.
9.3 Response. Contractor shall respond to all complaints within one (1) business day of
receiving a complaint from a Customer or notice of complaint from the City. Regardless
of the nature of the complaint, Contractor shall report the action taken to the City in
accordance with Article IV. Access to Records & Reporting.
9.4 Complaint Charges. Upon receipt of ten (10) Customer complaints within a forty-five
(45) day period, Contractor shall be assessed a charge of Three Hundred Dollars ($300.00).
Complaints are to be verified by the Contractor and the City’s Representative. The City
shall invoice the Contractor such charges.
ARTICLE X. DISPOSAL AND PROCESSING
10.1 Disposal Site. Unless approved otherwise in writing by the City, Contractor shall utilize
BVSWMA, Inc. Landfill for the disposal of all non-recyclable waste material collected by
Contractor within the corporate limits of the City.
10.2 Processing Facility. Contractor shall only use a City-approved recycling or composting
facility for processing of all Recyclables collected by Contractor within the corporate limits
of the City under this Agreement.
10.3 Disposal. In no case shall any Recyclable or Compostable Materials be disposed in a
landfill.
ARTICLE XI. VIOLATION AND PENALTY
11.1 Fine. It shall be unlawful for any person, firm or corporation violating any provision or
term of this Agreement and they shall receive a citation and fine not to exceed $2,000.00
per offense per day. Each and every day a violation continues constitutes a separate
offense.
11.2 Remedies. In addition to any rights set out elsewhere in this Agreement, or other rights
the City may possess at law or equity, the City reserves the right to apply any remedies,
alone or in combination, in the event Contractor violates any provision of this Agreement.
The remedies provided for in this Agreement are cumulative and not exclusive; the exercise
of one remedy shall not prevent the exercise of another, or any rights of the City at law or
equity.
ARTICLE XII. INSURANCE
12.1 The Contractor shall procure and maintain, at its sole cost and expense for the term of this
Agreement, insurance against claims for injuries to persons or damages to property that
Recyclable Collection Franchise Ordinance Page 9 of 17
may arise from or in connection with the performance of the services performed by the
Contractor, its agents, representatives, volunteers, employees, or subcontractors.
12.2 The Contractor's insurance shall list the City of College Station, its employees, volunteers,
and officials as additional insureds. Insurance requirements are attached in Exhibit B.
Certificates of insurance evidencing the required insurance coverages are attached in
Exhibit C.
ARTICLE XIII. INDEMNIFICATION AND RELEASE
13.1 Indemnification. Contractor shall indemnify, hold harmless, and defend the City, its
officers, agents, volunteers, and employees from and against any and all claims, losses,
damages, causes of action, suits, and liability of every kind, including all expenses of
litigation, court costs, and attorney's fees, for injury to or death of any person or for
damage to any property arising out of or in connection with the work and services
done by the Contractor under this Agreement. Such indemnity shall apply regardless
of whether the claims, losses, damages, causes of action, suits, or liability arise in
whole or in part from the negligence of the City, any other party indemnified
hereunder, the Contractor, or any third party.
13.2 Release. The Contractor assumes full responsibility for the work to be performed
hereunder and hereby releases, relinquishes, and discharges the City, its officers,
agents, volunteers, and employees from all claims, demands, and causes of action of
every kind and character, including the cost of defense thereof, for any injury to or
death of any person and any loss of or damage to any property caused by, alleged to
be caused by, arising out of, or in connection with the Contractor's work and services
to be performed hereunder. This release shall apply regardless of whether said claims,
demands, and causes of action are covered in whole or in part by insurance and
regardless of whether such injury, death, loss, or damage was caused in whole or in
part by the negligence of the City, any other party released hereunder, the
Contractor, or any third party.
ARTICLE XIV. DISPUTES AND MEDIATION
14.1 Disputes. If a dispute arises between City and Contractor during this Agreement, the
dispute shall first be referred to the operational officers or representatives designated by
the parties having oversight of the Agreement’s administration. The officers or
representatives shall meet within thirty (30) days of either party’s request for a meeting,
whichever request is first, and the parties shall make a good faith effort to achieve a
resolution of the dispute.
14.2 Mediation. If the parties not able to resolve the dispute under the procedure in this article,
then the parties agree the matter shall be referred to non-binding mediation. The parties
shall mutually agree upon a mediator to assist in resolving their differences. If the parties
cannot agree upon a mediator, the parties shall jointly obtain a list of three (3) mediators
from a reputable dispute resolution organization and alternate striking mediators on that
Recyclable Collection Franchise Ordinance Page 10 of 17
list until one remains. A coin toss shall determine who may strike the first name. If a party
fails to notify the other party of which mediator it has stricken within two (2) business days,
the other party shall select the mediator from those mediators remaining on the list. The
parties shall pay their own expenses of any mediation and will share the cost of the
mediator’s services.
14.3 Other Remedies. If the parties fail to achieve a resolution of the dispute through
mediation, either party may then pursue any available judicial remedies.
ARTICLE XV. GENERAL TERMS
15.1 Performance. Contractor, its employees, associates, or subcontractors shall perform all
the services in a professional manner and be fully qualified and competent to perform those
services.
15.2 Termination.
a. For Convenience. At any time, the City or Contractor may terminate this
Agreement for convenience, in writing with thirty (30) days’ notice. City shall be
compensated for outstanding Franchise Fees.
b. For Cause. City also may terminate this Agreement if Contractor materially
breaches or otherwise fails to perform, comply with or otherwise observe any of
the terms and conditions of this Agreement, or fails to maintain all required licenses
and approvals from federal, state, and local jurisdictions, and fails to cure such
breach or default within thirty (30) days of City providing Contractor written notice,
or, if not reasonably capable of being cured within thirty (30) calendar days, within
such other reasonable period of time upon which the parties may agree.
c. Hearing. This Agreement shall not be terminated except upon a majority vote of
the City Council, after giving reasonable notice to Contractor. The Contractor will
have an opportunity to be heard, provided if exigent circumstances necessitate
immediate termination, the hearing may be held as soon as possible after the
termination.
15.3 Venue. This Contract has been made under and shall be governed by the laws of the State
of Texas. The parties agree that performance and all matters related thereto shall be in
Brazos County, Texas.
15.4 Amendment. This Agreement may only be amended by written instrument approved and
executed by the parties.
15.5 Taxes. The City is tax exempt and is not responsible for the payment of any taxes.
15.6 Compliance with Laws. The Contractor will comply with all applicable federal, state,
and local statues, regulations, ordinances, and other laws, including but not limited to the
Recyclable Collection Franchise Ordinance Page 11 of 17
Immigration Reform and Control (IRCA). The Contractor may not knowingly obtain the
labor or services of an undocumented worker. The Contractor, not the City, must verify
eligibility for employment as required by IRCA.
15.7 Waiver of Terms. No waiver or deferral by either party of any term or condition of this
Contract shall be deemed or construed to be a waiver of deferral of any other term or
condition or subsequent waiver or deferral of the same term or condition.
15.8 Assignment. This Agreement and the rights and obligations contained herein may not be
assigned by the Contractor without the prior written approval of City.
15.9 Invalid Provisions. If any provision of this Agreement shall be held to be invalid or
unenforceable for any reason, the remaining provisions shall continue to be valid and
enforceable. If a court of competent jurisdiction finds that any provision of this Agreement
is invalid or unenforceable, and if by limiting that provision, the Agreement may become
valid and enforceable, then such provision shall be deemed to be written, construed, and
enforced as so limited.
15.10 Entire Agreement. This Agreement represents the entire agreement between the City and
Contractor and supersedes all prior negotiations, representations, or agreements, either
written or oral.
15.11 Agree to Terms. The parties’ state they have read the terms and conditions of this
Agreement and agree to the terms and conditions. Contractor shall evidence its
unconditional written acceptance of all the terms and conditions of this Agreement by the
execution of this Agreement.
15.12 Effective Date. According to City Charter, Section 105, after passage, approval and legal
publication of this Agreement as provided by law, and provided it has been duly accepted
by Contractor as herein above provided, this Agreement shall not take effect until sixty
(60) days after its adoption on its second and final reading.
15.13 Notice. Any official notice under this Agreement will be sent to the following addresses:
City of College Station Budget Disposal
Attn: Heather Woolwine d/b/a Premier Metal Buyers
PO BOX 9960 Attn: Blake Brannon
1101 Texas Ave 1555 Hwy 36 N
College Station, TX 77842 Brenham, TX 77833
hwoolwine@cstx.gov bbrannon@premiermetalbuyers.com
15.14 List of Exhibits. All exhibits to this Agreement are incorporated and made part of this
Agreement for all purposes.
A. Schedule of Rates
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B. Insurance Requirements
C. Certificates of Insurance
15.15 Public Meetings and Readings. This Agreement was passed adopted and approved
according to Texas Government Code Chapter 551.
a. First Consideration & Approval on the day of , 2018.
b. Second Consideration & Approval on the day of , 2018.
Recyclable Collection Franchise Ordinance Page 13 of 17
BUDGET DISPOSAL CITY OF COLLEGE STATION
D/B/A PREMIER METAL BUYERS
By: By:
Mayor
Printed Name: Blake Brannon
Title: Owner/Member Date: ________________
Date:
ATTEST:
City Secretary
Date: _____________
APPROVED:
City Manager
Date: _____________
City Attorney
Date: _____________
Assistant City Manager/CFO
Date: _____________
Recyclable Collection Franchise Ordinance Page 14 of 17
EXHIBIT A. SCHEDULE OF RATES
Contractor’s base rate is $150.00 per month. This rate may increase depending on a variety of
conditions including but not limited to:
• Location of Customer,
• Impact on Existing Routes,
• Ingress and Egress Capabilities,
• Special Requests by Customers,
• Frequency of Collections,
• Volume of Materials,
• Type of Materials,
• External Contributing Conditions of Market Costs.
Recyclable Collection Franchise Ordinance Page 15 of 17
EXHIBIT B. INSURANCE REQUIREMENTS
Throughout the term of this Agreement the Contractor must comply with the following:
I) Standard Insurance Policies Required:
A) Commercial General Liability
B) Business Automobile Liability
C) Workers' Compensation
II) General Requirements Applicable to All Policies:
A) Certificates of Insurance shall be prepared and executed by the insurance company or its
authorized agent.
B) Certificates of Insurance and endorsements shall be furnished on the most current State of
Texas Department of Insurance-approved forms to the City's Representative at the time of
execution of this Agreement; shall be attached to this Agreement as Exhibit C; and shall
be approved by the City before work begins.
C) Contractor shall be responsible for all deductibles on any policies obtained in compliance
with this Agreement. Deductibles shall be listed on the Certificate of Insurance and are
acceptable on a per-occurrence basis only.
D) The City will accept only Insurance Carriers licensed and authorized to do business in the
State of Texas.
E) The City will not accept "claims made" policies.
F) Coverage shall not be suspended, canceled, non-renewed or reduced in limits of liability
before thirty (30) days written notice has been given to the City.
III) Commercial General Liability
A) General Liability insurance shall be written by a carrier rated "A: VIII" or better under the
current A. M. Best Key Rating Guide.
B) Policies shall contain an endorsement listing the City as Additional Insured and further
providing "primary and non-contributory" language with regard to self-insurance or any
insurance the City may have or obtain.
C) Limits of liability must be equal to or greater than $500,000 per occurrence for bodily
injury and property damage, with an annual aggregate limit of $1,000,000. Limits shall be
endorsed to be per project.
D) No coverage shall be excluded from the standard policy without notification of individual
exclusions being submitted for the City's review and acceptance
E) The coverage shall include, but not be limited to the following: premises/operations with
separate aggregate; independent contracts; products/completed operations; contractual
liability (insuring the indemnity provided herein) Host Liquor Liability, and Personal &
Advertising Liability.
IV) Business Automobile Liability
Recyclable Collection Franchise Ordinance Page 16 of 17
A) Business Automobile Liability insurance shall be written by a carrier rated "A: VIII" or
better under the current A. M. Best Key Rating Guide.
B) Policies shall contain an endorsement listing the City as Additional Insured and further
providing "primary and non-contributory" language with regard to self-insurance or any
insurance the City may have or obtain
C) Combined Single Limit of Liability not less than $1,000,000 per occurrence for bodily
injury and property damage.
D) The Business Auto Policy must show Symbol 1 in the Covered Autos Portion of the
liability section in Item 2 of the declarations page
E) The coverage shall include any autos, owned autos, leased or rented autos, non-owned
autos, and hired autos.
V) Workers’ Compensation Insurance
A) Workers compensation insurance shall include the following terms:
1) Employer's Liability minimum limits of liability not less than $500,000 for each
accident/each disease/each employee are required
2) "Texas Waiver of Our Right to Recover From Others Endorsement, WC 42 03 04" shall
be included in this policy
3) TEXAS must appear in Item 3A of the Workers' Compensation coverage or Item 3C
must contain the following: "All States except those listed in Item 3A and the States of
NV, ND, OH, WA, WV, and WY"
Recyclable Collection Franchise Ordinance Page 17 of 17
EXHIBIT C. CERTIFICATES OF INSURANCE
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0285 Name:Pronto Services Commercial and Multi-Family
Recycling Franchise Agreement
Status:Type:Franchises Consent Agenda
File created:In control:4/16/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion on the second reading of a franchise agreement with
Pronto Services, LLC. for the collection of recyclables from commercial businesses and multi-family
locations.
Sponsors:Donald Harmon
Indexes:
Code sections:
Attachments:FY18_Franchise_ProntoServicesLLC
Action ByDate Action ResultVer.
Presentation,possible action,and discussion on the second reading of a franchise agreement with
Pronto Services,LLC.for the collection of recyclables from commercial businesses and multi-family
locations.
Relationship to Strategic Goals:
·Core Services and Infrastructure
Recommendation(s): Staff recommends approval of this franchise agreement.
Summary:The proposed agreement would allow Pronto Services,LLC.to collect recyclables from
commercial businesses and multi-family locations within the City of College Station.
Budget & Financial Summary:
Attachments:
1. Franchise Ordinance
College Station, TX Printed on 4/20/2018Page 1 of 1
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Recyclable Collection Franchise Ordinance Page 1 of 17
ORDINANCE NO.
RECYCLABLES COLLECTION FRANCHISE AGREEMENT
AN ORDINANCE GRANTING CONTRACTOR, PRONTO SERVICES, LLC, ITS
SUCCESSORS AND ASSIGNS, A NON-EXCLUSIVE FRANCHISE FOR THE
PRIVILEGE AND USE OF PUBLIC STREETS, ALLEYS, AND PUBLIC RIGHTS OF
WAY WITHIN THE CORPORATE LIMITS OF THE CITY OF COLLEGE STATION
(“CITY”) FOR THE PURPOSE OF PROVIDING COLLECTION OF CONSTRUCTION
AND DEMOLITION DEBRIS FROM RESIDENTIAL SITES, RECYCLABLES AND
RECYCLABLE CONSTRUCTION AND DEMOLITION DEBRIS FROM
COMMERCIAL BUSINESSES AND MULTIFAMILY RESIDENCES; PRESCRIBING
THE TERMS, CONDITIONS, OBLIGATIONS, AND LIMITATIONS UNDER WHICH
SAID FRANCHISE SHALL BE EXERCISED; PROVIDING FOR THE
CONSIDERATION; FOR THE PERIOD OF THE GRANT; FOR ASSIGNMENT; FOR
THE METHOD OF ACCEPTANCE; FOR REPEAL OF CONFLICTING ORDINANCES;
FOR PARTIAL INVALIDITY.
WHEREAS, the City, by ordinance, exclusively provides all solid waste collection and disposal
services for solid waste aggregated from within the City limits including, but not limited to
Recyclables; and
WHEREAS, the City pursuant to City Charter Article XI, may grant franchises to entities for use
of public streets, alleys, and highways for collection of Recyclables and Construction and
Demolition Debris generated in City limits; and
WHEREAS, the City of College Station desires to exercise the Charter’s authority and grant a
non-exclusive franchise to Contractor for collection of demolition and construction debris from
residential sites, collecting demolition and construction debris, recyclable materials, and organic
waste from multifamily and commercial locations for the purpose of recycling.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS,
Recyclable Collection Franchise Ordinance Page 2 of 17
Table of Contents
Article I. Definitions ...................................................................................................................... 3
Article II. Grant of Authority and Acceptance .............................................................................. 4
Article III. Payment and Term ....................................................................................................... 4
Article IV. Access to Records & Reporting ................................................................................... 5
Article V. Rates to be Charged by Contractor ............................................................................... 6
Article VI. Appearance of Personnel and Equipment .................................................................... 6
Article VII. Collection and Transport of Recyclables ................................................................... 7
Article VIII. Placement of Receptacles ......................................................................................... 7
Article IX. Service Complaints ...................................................................................................... 7
Article X. Disposal and Processing ............................................................................................... 8
Article XI. Violation and Penalty .................................................................................................. 8
Article XII. Insurance .................................................................................................................... 8
Article XIII. Indemnification and Release ..................................................................................... 9
Article XIV. Disputes and Mediation ............................................................................................ 9
Article XV. General Terms .......................................................................................................... 10
Exhibit A. Schedule of Rates ....................................................................................................... 14
Exhibit B. Insurance Requirements ............................................................................................. 15
I) Standard Insurance Policies Required: .............................................................................. 15
II) General Requirements Applicable to All Policies: ............................................................ 15
III) Commercial General Liability ........................................................................................ 15
IV) Business Automobile Liability ....................................................................................... 15
V) Workers’ Compensation Insurance ................................................................................ 16
Exhibit C. Certificates of Insurance ............................................................................................. 17
Recyclable Collection Franchise Ordinance Page 3 of 17
ARTICLE I. DEFINITIONS
1.1 Agreement means this Franchise Agreement adopted by City Ordinance between City and
Contractor for the collection of Recyclables within the City limits.
1.2 Approved Customers means those designated premises located within the City that
generate Recyclables.
1.3 Brazos Valley Solid Waste Management Agency, Inc. (BVSWMA, Inc.) means the
permitted municipal solid waste landfill and compost facility owned and operated by a
Texas local government corporation.
1.4 City Council or Council means the governing body of the City of College Station, Texas.
1.5 City means the City of College Station, a Texas Home Rule Municipal Corporation.
1.6 City's Representative means the Recycling & Environmental Compliance Manager or the
Manager’s designated appointee.
1.7 Collection means the scheduled aggregation of Recyclables by Contractor.
1.8 Construction and Demolition Debris means buildings material waste resulting from
demolition, remodeling, repairs, or construction, as well as materials discarded during
periodic temporary facility clean-up generated within the City.
1.9 Contaminated means Recyclables mixed with solid waste or altered in a way that results
in materials being unrecyclable or un-compostable.
1.10 Contractor means the Contractor franchised for the collection of Recyclables.
1.11 Customers means the locations designated by the City as a Commercial Business or
Multifamily Residence.
1.12 Organic Waste means waste of biological origin recovered from the solid waste stream
for the purposes of reuse, reclamation, or compost. Organic Waste is not solid waste,
unless it is abandoned or disposed of, rather than reprocessed into another product.
1.13 Receptacle means a weatherproof container easily identifiable and designated for
recycling or organic waste collection and shall not be made of any temporary materials.
1.14 Recyclables or Recyclable Materials mean materials, including construction and
demolition debris recovered from the solid waste stream for the purpose of reuse or
reclamation, a substantial portion of which are consistently used in the manufacture of
products that may otherwise be produced using raw or virgin materials. Recyclable
materials are not solid waste unless they are abandoned or disposed of as garbage rather
than reprocessed into another product.
Recyclable Collection Franchise Ordinance Page 4 of 17
1.15 Residue means the materials regularly associated with and attached to Recyclables, as a
part of the original packaging or usage of that material that is not recyclable or
compostable.
1.16 Roll-Off / Compactor means a container of varying capacity used for Recyclables
collection.
1.17 TAC means the Texas Administrative Code now and as amended.
1.18 TCEQ means the Texas Commission on Environmental Quality.
ARTICLE II. GRANT OF AUTHORITY AND ACCEPTANCE
2.1 Non-Exclusive. City grants Contractor a non-exclusive franchise to operate and establish
Recyclables collection from designated Customers. Nothing in this Agreement shall be
construed as granting an exclusive franchise or right. City grants Contractor passage and
rights-of-way on, along, and across City streets, highways, alleys, public places and all
other real property for collecting demolition and construction debris from commercial,
industrial, multifamily, and residential sites; as well as recyclables and organic waste from
commercial, industrial, and multifamily sites for the purpose of recycling within the
jurisdictional limits of the City. All collection, work, activity, and undertakings by
Contractor are subject to this Agreement and City’s governmental and police powers.
2.2 Acceptance. By accepting this Agreement, Contractor represents it has, by careful
examination, satisfied itself as to the nature and location of the services, character, quality,
and quantity of services to be performed, the character of the equipment and facilities
necessary to fulfill obligations under this Agreement, as well as the general and local
conditions and all other matters affecting services performed under this Agreement.
2.3 Option to Market Materials. If City develops services or programs resulting in materials
that may be recycled or composted, including but not limited to residential, multifamily, or
commercial recycling or composting, the City shall have the option to market those to any
contractor.
2.4 Contract with City. If City and Contractor contract for the collection and recycling or
composting of materials, those terms will be incorporated into this Agreement by
amendment.
ARTICLE III. PAYMENT AND TERM
3.1 Franchise Fee. For and in consideration of the grant of the franchise herein, Contractor
agrees and will pay a Franchise Fee during the term of this Agreement, a sum based on the
following graduated fee schedule depending on the percentage of aggregate recycling or
composting accomplished:
Recyclable Collection Franchise Ordinance Page 5 of 17
a. A fee is required, equivalent to five percent (5%) of Contractor's monthly gross
revenues, delivery revenues, and hauling revenues; including rates as described in
Exhibit A, generated from Contractor's provision of Recyclables collection
services within the City if Contractor reports aggregate recycling or composting of
at least sixty percent (60%) of Recyclables collected.
b. A fee is required, equivalent to six and one half percent (6.5%) of Contractor's
monthly gross revenues, delivery revenues, and hauling revenues; including rates
as described in Exhibit A, generated from Contractor’s provision of Recyclables
collection services within the City if Contractor reports aggregate recycling or
composting of at least fifty-five percent (55%) but less than sixty percent (60%) of
Recyclables collected.
c. A fee is required, equivalent to eight percent (8%) of Contractor's monthly gross
revenues, delivery revenues, and hauling revenues; including rates as described in
Exhibit A, generated from Contractor’s provision of Recyclables collection
services within the City if Contractor reports aggregate recycling or composting
less than fifty-five percent (55%) of Recyclables collected.
3.2 Payments. Revenue received by Contractor from this Agreement is subject to the
Franchise Fee and shall be computed into Contractor's monthly gross revenues, delivery
revenues, hauling revenues, and rates, as described in Exhibit A. Payment will be paid
quarterly to the City, and shall be due by the twentieth (20th) day of the month following
the end of the previous calendar quarter. Payment after that date shall incur a ten percent
(10%) late fee on the outstanding account balance under Article V.
3.3 Failure to Pay. Failure by Contractor to pay any amount due under this franchise
constitutes a Failure to Perform under this contract and is subject to the provisions of
Article XV. General Terms of this Agreement (Termination for Cause).
3.4 Franchise Fee Requirements. Payment s must state on a form approved by the City:
a. The number and type of Customers collected from, for the previous quarter, for
Customers included in this Agreement.
b. The total tons landfilled, recycled or composted, regardless of origin of collection,
for the previous quarter.
c. The total tons landfilled, recycled or composted, within the jurisdictional limits of
the City, for the previous quarter.
d. The total gross revenues for the previous calendar quarter, for revenues generated
under this agreement.
e. The total payment amount
3.5 Term. The term of this Agreement shall be for a period of five (5) years, beginning on the
date of acceptance and approval by City Council.
ARTICLE IV. ACCESS TO RECORDS & REPORTING
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4.1 Facilities. The City shall have the right to inspect the Contractor’s facilities, equipment,
personnel, and operations to ensure compliance with this Agreement.
4.2 Records. The City shall have the right to inspect Contractor’s records, receipts, and all
documentation relating to the performance of this Agreement. Those records include, but
are not limited to, information concerning the quality and quantity of Recyclables
collected, processed, and sold; number of Customers served, gross amounts paid to and
paid by Contractor from the sale/processing of Recyclables. The City agrees to notify the
Contractor at least twenty-four (24) hours prior to such inspection of operations and/or
records.
4.3 Records Retention. Contractor shall retain all records associated with this Agreement for
a period of four (4) years. City shall have access to information regarding Contractor’s
markets and prices paid for each type of material’s return/cost; all information obtained by
City marked confidential or proprietary shall remain confidential or proprietary pursuant
to the Texas Open Records Act.
4.4 Activity Report. Contractor shall provide a Monthly Recycling Activity Report, on a form
approved by the City, summarizing the previous month’s collection. This report is due to
the City’s Representative no later than the twentieth (20th) calendar day of each month.
Contractor’s report shall include the following information:
a. The Customer collection count, itemized by customer type.
b. Total tonnage of Recyclables collected, recycled and/or composted, itemized by
type of material, regardless of origin of collection.
c. Total tonnage of Recyclables collected, recycled and/or composted, itemized by
type of material, within the jurisdictional limits of the City.
d. Total tonnage of Recyclables collected, but not recycled or composted due to
rejection and the disposition of those materials.
e. Any other information concerning the Recyclables collection as required by the
City’s Representative.
ARTICLE V. RATES TO BE CHARGED BY CONTRACTOR
5.1 The Contractor shall follow the Schedule of Rates attached hereto as Exhibit A for the
services described herein. The rates provided shall be kept current and made available to
the City’s Representative within thirty (30) days of an adopted rate change. The Contractor
agrees to use due diligence to keep costs from increasing.
ARTICLE VI. APPEARANCE OF PERSONNEL AND EQUIPMENT
6.1 Equipment. Contractor shall ensure all collection equipment and vehicles are attractively
painted, well maintained and are in good working condition. Equipment must be washed
at least one time per week. Equipment and vehicles must have sufficient carrying capacity
for safe and efficient Recyclables collection. The City shall have the right to inspect and
Recyclable Collection Franchise Ordinance Page 7 of 17
approve the appearance of collection equipment. A standby vehicle shall be available at
all times for Recyclables collection.
6.2 Signage. Contractor’s vehicles shall at all times be clearly labeled with Contractor’s name
and phone number in visible letters and numbers not less than three (3) inches in height.
Signage must be on both sides of the vehicle and placed in a conspicuous place. Only
labeled vehicles shall perform collection activities under this Agreement. Contractor’s
roll-offs, compactors, and receptacles must be clearly marked as used for Recyclables
collection in letters at least twelve inches (12”) in height on each side of the container.
6.3 Personnel. All collection personnel shall wear a City-approved uniform to include, at
minimum, matching labeled shirts with denim jeans or other standard work attire.
ARTICLE VII. COLLECTION AND TRANSPORT OF RECYCLABLES
7.1 Transport. The Contractor shall only transport collected Recyclables for storage,
processing, disposal, or other necessary handling to locations in a manner permitted by the
terms of this Agreement as well as federal, state, and local law. This Agreement does not
authorize Contractor to utilize the streets, alleys, and public ways to dispose of municipal
solid waste or any other type of waste intended for disposal from any other project.
7.2 Cover. During transport of Recyclables all vehicles shall be covered to prevent release of
litter.
ARTICLE VIII. PLACEMENT OF RECEPTACLES
8.1 Placement. All roll-offs, compactors, and receptacles placed in service shall be located in
such a manner so as not to be a safety or traffic hazard. Under no circumstances shall
Contractor place roll-offs, compactors, or receptacles on public streets, alleys, or
thoroughfares without prior approval of the City’s Representative. City reserves the right
to designate the exact location of any or all roll-offs, compactors, or containers placed in
service in the City.
8.2 City Collection. Recyclables collection shall not interfere with the City’s collection of
municipal solid waste. Under no circumstances shall contractor place roll-offs, compactors,
or receptacles in existing enclosures designated for City roll-offs, compactors, and
receptacles.
ARTICLE IX. SERVICE COMPLAINTS
9.1 Nature of Complaint. Contractor shall handle directly any complaints pertaining to
customer service, property damage, or personal injury from their commercial business and
multifamily Recyclables collection service.
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9.2 Intake. Contractor shall develop written practices and procedures for receiving and
resolving Customer complaints and collection issues. Any complaint received by the City
shall be forwarded to the Contractor within one (1) business day of receipt.
9.3 Response. Contractor shall respond to all complaints within one (1) business day of
receiving a complaint from a Customer or notice of complaint from the City. Regardless
of the nature of the complaint, Contractor shall report the action taken to the City in
accordance with Article IV. Access to Records & Reporting.
9.4 Complaint Charges. Upon receipt of ten (10) Customer complaints within a forty-five
(45) day period, Contractor shall be assessed a charge of Three Hundred Dollars ($300.00).
Complaints are to be verified by the Contractor and the City’s Representative. The City
shall invoice the Contractor such charges.
ARTICLE X. DISPOSAL AND PROCESSING
10.1 Disposal Site. Unless approved otherwise in writing by the City, Contractor shall utilize
BVSWMA, Inc. Landfill for the disposal of all non-recyclable waste material collected by
Contractor within the corporate limits of the City.
10.2 Processing Facility. Contractor shall only use a City-approved recycling or composting
facility for processing of all Recyclables collected by Contractor within the corporate limits
of the City under this Agreement.
10.3 Disposal. In no case shall any Recyclable or Compostable Materials be disposed in a
landfill.
ARTICLE XI. VIOLATION AND PENALTY
11.1 Fine. It shall be unlawful for any person, firm or corporation violating any provision or
term of this Agreement and they shall receive a citation and fine not to exceed $2,000.00
per offense per day. Each and every day a violation continues constitutes a separate
offense.
11.2 Remedies. In addition to any rights set out elsewhere in this Agreement, or other rights
the City may possess at law or equity, the City reserves the right to apply any remedies,
alone or in combination, in the event Contractor violates any provision of this Agreement.
The remedies provided for in this Agreement are cumulative and not exclusive; the exercise
of one remedy shall not prevent the exercise of another, or any rights of the City at law or
equity.
ARTICLE XII. INSURANCE
12.1 The Contractor shall procure and maintain, at its sole cost and expense for the term of this
Agreement, insurance against claims for injuries to persons or damages to property that
Recyclable Collection Franchise Ordinance Page 9 of 17
may arise from or in connection with the performance of the services performed by the
Contractor, its agents, representatives, volunteers, employees, or subcontractors.
12.2 The Contractor's insurance shall list the City of College Station, its employees, volunteers,
and officials as additional insureds. Insurance requirements are attached in Exhibit B.
Certificates of insurance evidencing the required insurance coverages are attached in
Exhibit C.
ARTICLE XIII. INDEMNIFICATION AND RELEASE
13.1 Indemnification. Contractor shall indemnify, hold harmless, and defend the City, its
officers, agents, volunteers, and employees from and against any and all claims, losses,
damages, causes of action, suits, and liability of every kind, including all expenses of
litigation, court costs, and attorney's fees, for injury to or death of any person or for
damage to any property arising out of or in connection with the work and services
done by the Contractor under this Agreement. Such indemnity shall apply regardless
of whether the claims, losses, damages, causes of action, suits, or liability arise in
whole or in part from the negligence of the City, any other party indemnified
hereunder, the Contractor, or any third party.
13.2 Release. The Contractor assumes full responsibility for the work to be performed
hereunder and hereby releases, relinquishes, and discharges the City, its officers,
agents, volunteers, and employees from all claims, demands, and causes of action of
every kind and character, including the cost of defense thereof, for any injury to or
death of any person and any loss of or damage to any property caused by, alleged to
be caused by, arising out of, or in connection with the Contractor's work and services
to be performed hereunder. This release shall apply regardless of whether said claims,
demands, and causes of action are covered in whole or in part by insurance and
regardless of whether such injury, death, loss, or damage was caused in whole or in
part by the negligence of the City, any other party released hereunder, the
Contractor, or any third party.
ARTICLE XIV. DISPUTES AND MEDIATION
14.1 Disputes. If a dispute arises between City and Contractor during this Agreement, the
dispute shall first be referred to the operational officers or representatives designated by
the parties having oversight of the Agreement’s administration. The officers or
representatives shall meet within thirty (30) days of either party’s request for a meeting,
whichever request is first, and the parties shall make a good faith effort to achieve a
resolution of the dispute.
14.2 Mediation. If the parties not able to resolve the dispute under the procedure in this article,
then the parties agree the matter shall be referred to non-binding mediation. The parties
shall mutually agree upon a mediator to assist in resolving their differences. If the parties
cannot agree upon a mediator, the parties shall jointly obtain a list of three (3) mediators
from a reputable dispute resolution organization and alternate striking mediators on that
Recyclable Collection Franchise Ordinance Page 10 of 17
list until one remains. A coin toss shall determine who may strike the first name. If a party
fails to notify the other party of which mediator it has stricken within two (2) business days,
the other party shall select the mediator from those mediators remaining on the list. The
parties shall pay their own expenses of any mediation and will share the cost of the
mediator’s services.
14.3 Other Remedies. If the parties fail to achieve a resolution of the dispute through
mediation, either party may then pursue any available judicial remedies.
ARTICLE XV. GENERAL TERMS
15.1 Performance. Contractor, its employees, associates, or subcontractors shall perform all
the services in a professional manner and be fully qualified and competent to perform those
services.
15.2 Termination.
a. For Convenience. At any time, the City or Contractor may terminate this
Agreement for convenience, in writing with thirty (30) days’ notice. City shall be
compensated for outstanding Franchise Fees.
b. For Cause. City also may terminate this Agreement if Contractor materially
breaches or otherwise fails to perform, comply with or otherwise observe any of
the terms and conditions of this Agreement, or fails to maintain all required licenses
and approvals from federal, state, and local jurisdictions, and fails to cure such
breach or default within thirty (30) days of City providing Contractor written notice,
or, if not reasonably capable of being cured within thirty (30) calendar days, within
such other reasonable period of time upon which the parties may agree.
c. Hearing. This Agreement shall not be terminated except upon a majority vote of
the City Council, after giving reasonable notice to Contractor. The Contractor will
have an opportunity to be heard, provided if exigent circumstances necessitate
immediate termination, the hearing may be held as soon as possible after the
termination.
15.3 Venue. This Contract has been made under and shall be governed by the laws of the State
of Texas. The parties agree that performance and all matters related thereto shall be in
Brazos County, Texas.
15.4 Amendment. This Agreement may only be amended by written instrument approved and
executed by the parties.
15.5 Taxes. The City is tax exempt and is not responsible for the payment of any taxes.
15.6 Compliance with Laws. The Contractor will comply with all applicable federal, state,
and local statues, regulations, ordinances, and other laws, including but not limited to the
Recyclable Collection Franchise Ordinance Page 11 of 17
Immigration Reform and Control (IRCA). The Contractor may not knowingly obtain the
labor or services of an undocumented worker. The Contractor, not the City, must verify
eligibility for employment as required by IRCA.
15.7 Waiver of Terms. No waiver or deferral by either party of any term or condition of this
Contract shall be deemed or construed to be a waiver of deferral of any other term or
condition or subsequent waiver or deferral of the same term or condition.
15.8 Assignment. This Agreement and the rights and obligations contained herein may not be
assigned by the Contractor without the prior written approval of City.
15.9 Invalid Provisions. If any provision of this Agreement shall be held to be invalid or
unenforceable for any reason, the remaining provisions shall continue to be valid and
enforceable. If a court of competent jurisdiction finds that any provision of this Agreement
is invalid or unenforceable, and if by limiting that provision, the Agreement may become
valid and enforceable, then such provision shall be deemed to be written, construed, and
enforced as so limited.
15.10 Entire Agreement. This Agreement represents the entire agreement between the City and
Contractor and supersedes all prior negotiations, representations, or agreements, either
written or oral.
15.11 Agree to Terms. The parties’ state they have read the terms and conditions of this
Agreement and agree to the terms and conditions. Contractor shall evidence its
unconditional written acceptance of all the terms and conditions of this Agreement by the
execution of this Agreement.
15.12 Effective Date. According to City Charter, Section 105, after passage, approval and legal
publication of this Agreement as provided by law, and provided it has been duly accepted
by Contractor as herein above provided, this Agreement shall not take effect until sixty
(60) days after its adoption on its second and final reading.
15.13 Notice. Any official notice under this Agreement will be sent to the following addresses:
City of College Station Pronto Services, LLC.
Attn: Heather Woolwine Attn: Laramie Wheaton
PO BOX 9960 PO Box 4662
1101 Texas Ave. 1733 Briarcrest Dr., Ste. 210
College Station, TX 77842 Bryan, TX 77802
hwoolwine@cstx.gov laramie@prontoservicesllc.com
15.14 List of Exhibits. All exhibits to this Agreement are incorporated and made part of this
Agreement for all purposes.
A. Schedule of Rates
B. Insurance Requirements
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C. Certificates of Insurance
15.15 Public Meetings and Readings. This Agreement was passed adopted and approved
according to Texas Government Code Chapter 551.
a. First Consideration & Approval on the day of , 2018.
b. Second Consideration & Approval on the day of , 2018.
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PRONTO SERVICES, LLC. CITY OF COLLEGE STATION
By: By:
Mayor
Printed Name: Laramie Wheaton
Title: Owner/Member Date: ________________
Date: 3/7/2018
ATTEST:
City Secretary
Date: _____________
APPROVED:
City Manager
Date: _____________
City Attorney
Date: _____________
Assistant City Manager/CFO
Date: _____________
Recyclable Collection Franchise Ordinance Page 14 of 17
EXHIBIT A. SCHEDULE OF RATES
Contractor’s base rate is $110.00 per month, and may increase, depending on a variety of
conditions, including but not limited to:
• Location of Customer,
• Impact on Existing Routes,
• Ingress and Egress Capabilities,
• Special Requests by Customers,
• Frequency of Collections,
• Volume of Materials,
• Type of Materials,
• External Contributing Conditions of Market Costs.
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EXHIBIT B. INSURANCE REQUIREMENTS
Throughout the term of this Agreement the Contractor must comply with the following:
I) Standard Insurance Policies Required:
A) Commercial General Liability
B) Business Automobile Liability
C) Workers' Compensation
II) General Requirements Applicable to All Policies:
A) Certificates of Insurance shall be prepared and executed by the insurance company or its
authorized agent.
B) Certificates of Insurance and endorsements shall be furnished on the most current State of
Texas Department of Insurance-approved forms to the City's Representative at the time of
execution of this Agreement; shall be attached to this Agreement as Exhibit C; and shall
be approved by the City before work begins.
C) Contractor shall be responsible for all deductibles on any policies obtained in compliance
with this Agreement. Deductibles shall be listed on the Certificate of Insurance and are
acceptable on a per-occurrence basis only.
D) The City will accept only Insurance Carriers licensed and authorized to do business in the
State of Texas.
E) The City will not accept "claims made" policies.
F) Coverage shall not be suspended, canceled, non-renewed or reduced in limits of liability
before thirty (30) days written notice has been given to the City.
III) Commercial General Liability
A) General Liability insurance shall be written by a carrier rated "A: VIII" or better under the
current A. M. Best Key Rating Guide.
B) Policies shall contain an endorsement listing the City as Additional Insured and further
providing "primary and non-contributory" language with regard to self-insurance or any
insurance the City may have or obtain.
C) Limits of liability must be equal to or greater than $500,000 per occurrence for bodily
injury and property damage, with an annual aggregate limit of $1,000,000. Limits shall be
endorsed to be per project.
D) No coverage shall be excluded from the standard policy without notification of individual
exclusions being submitted for the City's review and acceptance
E) The coverage shall include, but not be limited to the following: premises/operations with
separate aggregate; independent contracts; products/completed operations; contractual
liability (insuring the indemnity provided herein) Host Liquor Liability, and Personal &
Advertising Liability.
IV) Business Automobile Liability
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A) Business Automobile Liability insurance shall be written by a carrier rated "A: VIII" or
better under the current A. M. Best Key Rating Guide.
B) Policies shall contain an endorsement listing the City as Additional Insured and further
providing "primary and non-contributory" language with regard to self-insurance or any
insurance the City may have or obtain
C) Combined Single Limit of Liability not less than $1,000,000 per occurrence for bodily
injury and property damage.
D) The Business Auto Policy must show Symbol 1 in the Covered Autos Portion of the
liability section in Item 2 of the declarations page
E) The coverage shall include any autos, owned autos, leased or rented autos, non-owned
autos, and hired autos.
V) Workers’ Compensation Insurance
A) Workers compensation insurance shall include the following terms:
1) Employer's Liability minimum limits of liability not less than $500,000 for each
accident/each disease/each employee are required
2) "Texas Waiver of Our Right to Recover From Others Endorsement, WC 42 03 04" shall
be included in this policy
3) TEXAS must appear in Item 3A of the Workers' Compensation coverage or Item 3C
must contain the following: "All States except those listed in Item 3A and the States of
NV, ND, OH, WA, WV, and WY"
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EXHIBIT C. CERTIFICATES OF INSURANCE
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0274 Name:Rezoning – Summit Crossing Phases 4-6
Status:Type:Rezoning Agenda Ready
File created:In control:4/11/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Appendix “A”, “Unified Development Ordinance,” Section 4.2, "Official Zoning Map," of the Code of
Ordinances of the City of College Station, Texas by changing the zoning district boundaries from PDD
Planned Development District to T Townhouse for approximately 36 acres generally located at the
intersection of Buena Vista and Summit Crossing Lane.
Sponsors:Rachel Lazo
Indexes:
Code sections:
Attachments:Background Information
Vicinity Aerial SAM
Ordinance
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Appendix “A”, “Unified Development Ordinance,” Section 4.2, "Official Zoning Map," of the Code of
Ordinances of the City of College Station, Texas by changing the zoning district boundaries from
PDD Planned Development District to T Townhouse for approximately 36 acres generally located at
the intersection of Buena Vista and Summit Crossing Lane.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
Recommendation(s): The Planning & Zoning Commission considered this item at their April 5, 2018
meeting and voted 5-1-1 to recommend approval.
Summary: The applicant has requested a T Townhouse rezoning at this location to allow for Phases
4-6 of the existing Summit Crossing development. Previously, Summit Crossing has developed under
a Planned Development District with duplexes as an approved use, then revised the PDD for
townhouse uses. Instead of continuing to modify the PDD, the applicant has chosen to request T
Townhouse as it would still comply with the Urban land use designation.
REZONING REVIEW CRITERIA
1.Whether the proposal is consistent with the Comprehensive Plan: The subject area
is designated on the Comprehensive Plan Future Land Use and Character Map as Urban.
The Comprehensive Plan states that this designation is for areas that should have very
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intense level of development consisting of townhomes, duplexes, and high-density
apartments. The proposed zoning permits townhomes, allowing the property to be developed
consistent with the Comprehensive Plan.
2.Whether the uses permitted by the proposed zoning district will be appropriate in the
context of the surrounding area:As this is a continuation of the existing Summit Crossing
townhouse development, Townhouse zoning is compatible with the present zoning and
conforming uses of the area and the character of the neighborhood.
3.Whether the property to be rezoned is physically suitable for the proposed zoning
district: The property is suitable for townhouse uses. It has been planned since 2003 for
duplex uses where each side is on an individually platted lot to promote individual home
ownership. Previous phases of the Summit Crossing development have also converted to
townhomes as they developed. Currently the property is undeveloped, moving urban-density
residential eastward up Harvey Road. There is no floodplain on the property and it is relatively
flat.
4.Whether there is available water, wastewater, stormwater, and transportation facilities
generally suitable and adequate for uses permitted by the proposed zoning district:
Water service will be provided by the City of College Station via an existing 12-inch water main
located along Summit Crossing Lane, and sewer access via an existing 8-inch sanitary sewer
line located along Summit Crossing Lane.
The subject property has frontage on Summit Crossing Lane, an existing 2-lane Minor Collector.
The subject tract will have one connection on Harvey Road and to the existing Summit Crossing
development.
Drainage and other public infrastructure required with the site shall be designed and constructed
in accordance with the B/CS Unified Design Guidelines. Existing infrastructure currently appears
to have capacity to adequately serve the proposed use.
A traffic impact analysis (TIA) was performed as part of the rezoning request. All studied
intersections are anticipated to perform at an acceptable level of service, although a center left-
turn lane in Harvey Road at Summit Crossing Lane is recommended to handle the volume of
turning movements. City staff and the applicant are working with TxDOT on the appropriate
implementation of a center turn lane at the aforementioned location.
5.The marketability of the property:The subject property is marketable with its current
zoning of PDD Planned Development District, however, a T Townhouse district simplifies the
zoning and future development processes.
STAFF RECOMMENDATION
Staff recommends approval.
Budget & Financial Summary: N/A
Legal Review: Yes
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Attachments:
1.Background Information
2.Vicinity Map, Aerial, and Small Area Map
3.Ordinance
College Station, TX Printed on 4/20/2018Page 3 of 3
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NOTIFICATIONS
Advertised Commission Hearing Date: April 5, 2018
Advertised Council Hearing Dates: April 26, 2018
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
Summit Crossing HOA
Property owner notices mailed: Nine (9)
Contacts in support: None
Contacts in opposition: None
Inquiry contacts: Two at the time of staff report
ADJACENT LAND USES
Direction Comprehensive
Plan Zoning Land Use
North General Commercial
GC General
Commercial and CI
Commercial
Industrial
Undeveloped,
industrial business,
and Single-Family
Residential
South Urban PDD Planned
Development District Undeveloped
East General Commercial
R Rural and PDD
Planned
Development District
Large Lot Rural and
Undeveloped
West Urban R Rural & T
Townhouse
Undeveloped and
Townhomes
DEVELOPMENT HISTORY
Annexation: September 1980
Zoning: Properties zoned A-O Agricultural Open upon Annexation
2003 – 105.834 acre tract zoned PDD Planned Development District
with duplexes as an approved use and the northwest corner of Harvey
& FM 158 zoned GC General Commercial
Final Plat: N/A – Property is currently unplatted
Site development: Vacant
Ordinance Form 8-14-17
ORDINANCE NO. _____
AN ORDINANCE AMENDING APPENDIX A “UNIFIED DEVELOPMENT ORDINANCE,”
ARTICLE 4 “ZONING DISTRICTS,” SECTION 4.2, “OFFICIAL ZONING MAP” OF THE
CODE OF ORDINANCES OF THE CITY OF COLLEGE STATION, TEXAS, BY CHANGING
THE ZONING DISTRICT BOUNDARIES FROM PDD PLANNED DEVELOPMENT
DISTRICT TO T TOWNHOUSE FOR APPROXIMATELY 36 ACRES GENERALLY
LOCATED AT THE INTERSECTION OF BUENA VISTA AND SUMMIT CROSSING LANE;
PROVIDING A SEVERABILITY CLAUSE; DECLARING A PENALTY; AND PROVIDING
AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That Appendix A “Unified Development Ordinance,” Article 4 “Zoning Districts,”
Section 4.2 “Official Zoning Map” of the Code of Ordinances of the City of College
Station, Texas, be amended as set out in Exhibit “A”, Exhibit “B”, and Exhibit “C”
attached hereto and made a part of this Ordinance for all purposes.
PART 2: If any provision of this Ordinance or its application to any person or circumstances is
held invalid or unconstitutional, the invalidity or unconstitutionality does not affect
other provisions or application of this Ordinance or the Code of Ordinances of the City
of College Station, Texas, that can be given effect without the invalid or
unconstitutional provision or application, and to this end the provisions of this
Ordinance are severable.
PART 3: That any person, corporation, organization, government, governmental subdivision or
agency, business trust, estate, trust, partnership, association and any other legal entity
violating any of the provisions of this Ordinance shall be deemed guilty of a
misdemeanor, and upon conviction thereof shall be punishable by a fine of not less than
twenty five dollars ($25.00) and not more than five hundred dollars ($500.00) or more
than two thousand dollars ($2,000) for a violation of fire safety, zoning, or public health
and sanitation ordinances, other than the dumping of refuse. Each day such violation
shall continue or be permitted to continue, shall be deemed a separate offense.
PART 4: This Ordinance is a penal ordinance and becomes effective ten (10) days after its date
of passage by the City Council, as provided by City of College Station Charter Section
35.
ORDINANCE NO. ____________ Page 2 of 6
Ordinance Form 8-14-17
PASSED, ADOPTED, and APPROVED this 26th day of April, 2018.
ATTEST: APPROVED:
_____________________________ _____________________________
City Secretary Mayor
APPROVED:
_______________________________
City Attorney
ORDINANCE NO. ____________ Page 3 of 6
Ordinance Form 8-14-17
Exhibit A
That Appendix A “Unified Development Ordinance,” Article 4 “Zoning Districts,” Section 4.2,
“Official Zoning Map” of the Code of Ordinances of the City of College Station, Texas, is hereby
amended as follows:
The following property is rezoned from PDD Planned Development District to T Townhouse:
ORDINANCE NO. ____________ Page 4 of 6
Ordinance Form 8-14-17
ORDINANCE NO. ____________ Page 5 of 6
Ordinance Form 8-14-17
EXHIBIT “B”
ORDINANCE NO. ____________ Page 6 of 6
Ordinance Form 8-14-17
Exhibit “C”
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0275 Name:Rezoning – Summit Crossing Multi-Family
Status:Type:Rezoning Agenda Ready
File created:In control:4/11/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Appendix A, “Unified Development Ordinance,” Article 4, “Zoning Districts,” Section 4.2 “Official
Zoning Map,” of the Code of Ordinances of the City of College Station, Texas by changing the zoning
district boundaries from PDD Planned Development District to MF Multi-Family on approximately 12
acres of land, located at the intersection of Summit Crossing Lane and Harvey Road.
Sponsors:Rachel Lazo
Indexes:
Code sections:
Attachments:Background Information
Vicinity Aerial SAM
Ordinance
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion regarding an ordinance amending
Appendix A, “Unified Development Ordinance,” Article 4, “Zoning Districts,” Section 4.2 “Official
Zoning Map,” of the Code of Ordinances of the City of College Station, Texas by changing the zoning
district boundaries from PDD Planned Development District to MF Multi-Family on approximately 12
acres of land, located at the intersection of Summit Crossing Lane and Harvey Road.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
Recommendation(s): The Planning & Zoning Commission considered this item at their April 5, 2018
meeting and voted 5-1-1 to recommend approval.
Summary: The applicant has requested a rezoning for approximately 12 acres of land from PDD
Planned Development District with a base zoning of D Duplex to MF Multi-Family. The property is
currently designated as Urban on the Comprehensive Land Use and Character Map. This
designation calls for intense land use activities that include townhomes, duplexes, and high-density
apartments and is consistent with the applicant’s proposed rezoning request.
REZONING REVIEW CRITERIA
1.Whether the proposal is consistent with the Comprehensive Plan: The subject area
is designated on the Comprehensive Plan Future Land Use and Character Map as Urban. The
Urban land use designation is generally for areas that should have a very intense level of
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development activities. These areas will tend to consist of townhomes, duplexes, and high-
density apartments. Currently, there are a significant number of single-family attached and
detached residences along Harvey Road, but limited multi-family uses. The proposed zoning
permits multi-family uses, allowing the property to be developed consistent with the
Comprehensive Plan.
2.Whether the uses permitted by the proposed zoning district will be appropriate in the
context of the surrounding area:The properties to the north and west of the subject property
are zoned PDD Planned Development District with D Duplex as a base zoning district and are
currently pending development. They were included as part of the overall Summit Crossing
master plan, which this portion is in the planning phase to build out as additional townhomes.
The properties to the east are currently vacant with commercial retail at the hard corner of FM
158 and Harvey Road. This proposed zoning change would be compatible with the adjacent
properties.
3.Whether the property to be rezoned is physically suitable for the proposed zoning
district: The proposed zoning request to rezone for multi-family on this property would allow for
dense residential development in a greenfield area planned for high concentrations of residential
uses for along Harvey Road, a major thoroughfare. The request would then provide the
opportunity to offer another housing type in an area that is primarily single-family attached and
detached.
4.Whether there is available water, wastewater, stormwater, and transportation facilities
generally suitable and adequate for uses permitted by the proposed zoning district:
Water service will be provided by the City of College Station via two existing 12-inch water
mains located along Summit Crossing Lane and Harvey Road. Sewer access will be via an
existing 10-inch sanitary sewer line located across Summit Crossing Lane.
The subject property has frontage on Summit Crossing Lane, an existing 2-lane minor collector
and Harvey Road, an existing 4-lane major arterial. The subject tract will have one connection
on Summit Crossing Lane, and access to Harvey Road will be determined through TxDOT.
Drainage and other public infrastructure required with the site shall be designed and constructed
in accordance with the B/CS Unified Design Guidelines. Existing infrastructure currently appears
to have capacity to adequately serve the proposed use.
A traffic impact analysis (TIA) was performed for the request. All studied intersections are
anticipated to perform at an acceptable level of service though a center left-turn lane in Harvey
Road at Summit Crossing Lane is recommended to handle the volume of left turns. City staff
and the applicant are working with TxDOT on the appropriate implementation of a left turn lane
at the aforementioned location.
5.The marketability of the property:The subject property is marketable with its current
zoning of PDD Planned Development District, however, considering it is located along a 4-lane
major arterial and a 2-lane minor collector, the proposed MF Multi-Family rezoning is anticipated
to increase the marketability of the property.
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File #:18-0275,Version:1
STAFF RECOMMENDATION
Staff recommends approval.
Budget & Financial Summary: N/A
Legal Review: Yes
Attachments:
1.Background Information
2.Vicinity Map, Small Area Map, and Aerial
3.Ordinance
College Station, TX Printed on 4/20/2018Page 3 of 3
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NOTIFICATIONS
Advertised Commission Hearing Date: April 5, 2018
Advertised Council Hearing Dates: April 26, 2018
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
Summit Crossing HOA
Property owner notices mailed: Ten (10)
Contacts in support: None
Contacts in opposition: None
Inquiry contacts: Two (2) at the time of staff report
ADJACENT LAND USES
Direction Comprehensive
Plan Zoning Land Use
North Urban PDD Planned
Development District Undeveloped
South Suburban
Commercial
R Rural, O Office,
and SC Suburban
Commercial
Single-Family
Residential, Church,
Undeveloped
East General Commercial PDD Planned
Development District Undeveloped
West Urban
T Townhouse and
PDD Planned
Development District
Parkland
DEVELOPMENT HISTORY
Annexation: September 1980
Zoning: Properties zoned A-O Agricultural Open upon Annexation
2003 – 105.834 acre tract zoned PDD Planned Development District
with duplexes as an approved use and the northwest corner of Harvey
& FM 158 zoned GC General Commercial
Final Plat: N/A – Property is currently unplatted
Site development: Vacant
Ordinance Form 8-14-17
ORDINANCE NO. _____
AN ORDINANCE AMENDING APPENDIX A “UNIFIED DEVELOPMENT ORDINANCE,”
ARTICLE 4 “ZONING DISTRICTS,” SECTION 4.2, “OFFICIAL ZONING MAP” OF THE
CODE OF ORDINANCES OF THE CITY OF COLLEGE STATION, TEXAS, BY CHANGING
THE ZONING DISTRICT BOUNDARIES FROM PDD PLANNED DEVELOPMENT
DISTRICT TO MF MULTI-FAMILY ON APPROXIMATELY 12 ACRES OF LAND,
LOCATED AT THE INTERSECTION OF SUMMIT CROSSING LANE AND HARVEY
ROAD.; PROVIDING A SEVERABILITY CLAUSE; DECLARING A PENALTY; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION,
TEXAS:
PART 1: That Appendix A “Unified Development Ordinance,” Article 4 “Zoning Districts,”
Section 4.2 “Official Zoning Map” of the Code of Ordinances of the City of College
Station, Texas, be amended as set out in Exhibit “A”, Exhibit “B”, and Exhibit “C”
attached hereto and made a part of this Ordinance for all purposes.
PART 2: If any provision of this Ordinance or its application to any person or circumstances is
held invalid or unconstitutional, the invalidity or unconstitutionality does not affect
other provisions or application of this Ordinance or the Code of Ordinances of the City
of College Station, Texas, that can be given effect without the invalid or
unconstitutional provision or application, and to this end the provisions of this
Ordinance are severable.
PART 3: That any person, corporation, organization, government, governmental subdivision or
agency, business trust, estate, trust, partnership, association and any other legal entity
violating any of the provisions of this Ordinance shall be deemed guilty of a
misdemeanor, and upon conviction thereof shall be punishable by a fine of not less than
twenty five dollars ($25.00) and not more than five hundred dollars ($500.00) or more
than two thousand dollars ($2,000) for a violation of fire safety, zoning, or public health
and sanitation ordinances, other than the dumping of refuse. Each day such violation
shall continue or be permitted to continue, shall be deemed a separate offense.
PART 4: This Ordinance is a penal ordinance and becomes effective ten (10) days after its date
of passage by the City Council, as provided by City of College Station Charter Section
35.
ORDINANCE NO. ____________ Page 2 of 6
Ordinance Form 8-14-17
PASSED, ADOPTED, and APPROVED this 26th day of April, 2018.
ATTEST: APPROVED:
_____________________________ _____________________________
City Secretary Mayor
APPROVED:
_______________________________
City Attorney
ORDINANCE NO. ____________ Page 3 of 6
Ordinance Form 8-14-17
Exhibit A
That Appendix A “Unified Development Ordinance,” Article 4 “Zoning Districts,” Section 4.2,
“Official Zoning Map” of the Code of Ordinances of the City of College Station, Texas, is hereby
amended as follows:
The following property is rezoned from PDD Planned Development District to T Townhouse:
ORDINANCE NO. ____________ Page 4 of 6
Ordinance Form 8-14-17
ORDINANCE NO. ____________ Page 5 of 6
Ordinance Form 8-14-17
EXHIBIT “B”
ORDINANCE NO. ____________ Page 6 of 6
Ordinance Form 8-14-17
Exhibit “C”
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0278 Name:Conditional Use Permit – Wayside Food Park
Status:Type:Ordinance Agenda Ready
File created:In control:4/12/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Public Hearing, presentation, possible action, and discussion to consider a Conditional Use Permit
request for a Mobile Food Court, on approximately 0.4 acres located at 203 First Street.
Sponsors:Rachel Lazo
Indexes:
Code sections:
Attachments:Background Information
Vicinity Aerial SAM
2016 City Council Meeting Minutes
Ordinance
Action ByDate Action ResultVer.
Public Hearing, presentation, possible action, and discussion to consider a Conditional Use Permit
request for a Mobile Food Court, on approximately 0.4 acres located at 203 First Street.
Relationship to Strategic Goals:
·Good Governance
·Diverse Growing Economy
Recommendation(s):The Planning and Zoning Commission heard this item at their April 19,2018
meeting. Their recommendation will be presented at the City Council meeting.
Summary:This request is for a Conditional Use Permit amendment to remove the requirement for
Texas certified peace officers for an existing Mobile Food Court currently zoned NG-1 Core
Northgate.Originally approved in October 2016,the CUP allows for the operation of a Mobile Food
Park at the subject property.However,there were concerns over light and noise pollution as well as
potential crime which culminated in conditions placed upon approval that the sale of alcohol be
limited to beer and wine only,ending no later than midnight,and the requirement of at least two
Texas certified peace officers Thursday through Sunday from 10:00 pm to 3:00 am.The site
developed and received a Certificate of Occupancy in December 2017.Since then,activity on the
site has been relatively unremarkable,resulting in the current request to remove the condition on the
CUP for the requirement of certified peace officers.
REVIEW CRITERIA
1.The proposed use shall meet the purpose and intent of the Unified Development
Ordinance (UDO)and meet all minimum standards for this type of use per the UDO.The
subject property currently has an approved Conditional Use Permit for a Mobile Food Court that
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subject property currently has an approved Conditional Use Permit for a Mobile Food Court that
was approved in October 2016.This Conditional Use Permit has two conditions with the first being
that the Mobile Food court limit alcohol sales to beer and wine only and that such sales end no
later than midnight.The second condition is a requirement that two Texas certified peace officers
be present on site from 10:00 pm to 3:00 am Thursday through Sunday.The applicant is
proposing to remove the requirement for the Texas certified peace officers with no additional
changes to the site.
2.The proposed use shall be consistent with the development policies and goals and
objectives as embodied in the Comprehensive Plan for development in the City.The subject
tract is shown on the Comprehensive Plan Future Land Use and Character Map as Urban Mixed
Use which allows for residential,commercial,and office uses in vertical mixed-use structures.
The subject property is also designated by the Comprehensive Plan as a Redevelopment Area.
These areas are identified as anticipating a change in land use,and,if appropriate,character to
help it evolve into a more dense area with mixed-use activity.Given the Comprehensive Plan,a
Mobile Food Court use continues to be an appropriate use for the area.
3.The proposed use shall not be detrimental to the health,welfare,or safety of the
surrounding neighborhood or its occupants,not be substantially or permanently injurious
to neighboring property.In its first few months of operation starting in December 2017,this use
has not been determined to be detrimental or substantially injurious to the surrounding
neighborhood or its occupants.The proposed food court’s site layout allows for pedestrian traffic
only,reducing the potential conflicts of pedestrian traffic and vehicular traffic within this site.Their
site meets safety regulations associated with TABC and the selling of alcoholic beverages
including providing fencing around the site to create a controlled environment.As previously
agreed upon,the site operates during business hours set in the Unified Development Ordinance
for Mobile Food Courts and provides an on-site manager to ensure the safety of the business
operations and customers.The applicant has been working with the College Station Police
Department during the first few months of operation to determine if the requirement for on-site
peace officers would still be required.During this period CSPD Chief McCollum and the applicant
have concluded that this requirement is ultimately not necessary.
4.The proposed site plan and circulation plan shall be harmonious with the character of
the surrounding area.The site currently has an approved Site Plan,which was constructed and
received their Certificate of Occupancy in 2017.The applicant is not proposing any changes to
the existing approved site plan.
5.The proposed use shall not negatively impact existing uses in the area or in the City
through impacts on public infrastructure such as roads,parking facilities,electrical,or
water and sewer systems,or on public services such as police and fire protection,solid
waste collection,or the ability of existing infrastructure and services to adequately provide
services.This use will not negatively impact public infrastructure or services.The site currently
has an approved Site Plan,which was constructed and received their Certificate of Occupancy in
2017.The applicant is not proposing any changes to the existing approved site plan.CSTEP
(College Station Tourism and Entertainment Policing Unit)has monitored the activity at Wayside
since it opened and activity has been consistently low.Regarding the requirement of no longer
requiring peace officers at Wayside, the police department has no objection to this change.
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6.The proposed use shall not negatively impact existing uses in the area or in the City.
The use of a food truck park is compatible with the area’s existing multifamily and commercial
establishments which include restaurants and bars.After seeing how the mobile food park has
functioned over the past four months,the College Station Police Department has determined that
they do not anticipate existing uses being negatively impacted by removing the requirement for
the stationing of two peace officers from 10:00 pm to 3:00 am Thursday through Sunday.
STAFF RECOMMENDATION
The Planning and Zoning Commission heard this item at their April 19, 2018 meeting. Their
recommendation will be presented at the City Council meeting.
Budget & Financial Summary: N/A
Attachments:
1.Background Information
2.Vicinity, Aerial & Small Area Map
3.2016 City Council Meeting Minutes
4.Ordinance
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NOTIFICATIONS
Advertised Commission Hearing Date: April 19, 2018
Advertised Council Hearing Dates: April 26, 2018
The following neighborhood organizations that are registered with the City of College Station’s
Neighborhood Services have received a courtesy letter of notification of this public hearing:
Northgate District Association
Property owner notices mailed: Fourteen (14)
Contacts in support: None
Contacts in opposition: None
Inquiry contacts: One at the time of staff report
ADJACENT LAND USES
Direction Comprehensive
Plan
Zoning Land Use
North Urban Mixed Use,
Redevelopment Area
NG-1 Core Northgate Vertical Mixed Use
South Urban Mixed Use,
Redevelopment Area
NG-1 Core Northgate Undeveloped,
Commercial
East (across First St.) Urban Mixed Use,
Redevelopment Area
NG-1 Core Northgate Commercial parking
lot
West (Wellborn Rd.) Urban Mixed Use,
Redevelopment Area
NG-1 Core Northgate On Ramp to
Wellborn Road
DEVELOPMENT HISTORY
Annexation: 1939
Zoning: A-O Agricultural Open (upon annexation)
C-1 General Commercial (1973)
NG-1 Historic Northgate (1996)
NG-1 Historic Northgate renamed NG-1 Core Northgate (2003)
Final Plat: July 1939
Site development: Mobile Food Court
ORDINANCE NO.__________
AN ORDINANCE AMENDING A CONDITIONAL USE PERMIT AFFECTING
BOYETT ESTATES SUBDIVISION, BLOCK 10, LOT 5 AND 6 AND PARTS OF LOT 1
AND 2, LOCATED AT 203 FIRST STREET, PURSUANT TO APPENDIX A.
“UNIFIED DEVELOPMENT ORDINANCE,” ARTICLE 3,
“DEVELOPMENT REVIEW PROCEDURES,” SECTION 3.16,
“CONDITIONAL USE PERMIT,” OF THE CODE OF ORDINANCES OF THE
CITY OF COLLEGE STATION, TEXAS; PROVIDING A SEVERABILITY CLAUSE;
DECLARING A PENALTY; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS:
PART 1: That the conditional use permit affecting Boyett Estates Subdivision, Block 10, Lots 5
and 6 and parts of Lot 1 and 2, located at 203 First Street, granted in accordance with
Appendix A, “Unified Development Ordinance,” Article 3, “Development Review
Procedures,” Section 3.16, “Conditional Use Permit,” of the Code of Ordinances of the
City of College Station, Texas, be amended as set out in Exhibit “A” attached hereto
and made a part of this Ordinance for all purposes.
PART 2: If any provision of this Ordinance or its application to any person or circumstances is
held invalid or unconstitutional, the invalidity or unconstitutionality does not affect
other provisions or application of this Ordinance or the Code of Ordinances of the City
of College Station, Texas, that can be given effect without the invalid or
unconstitutional provision or application, and to this end the provisions of this
Ordinance are severable.
PART 3: That any person, corporation, organization, government, governmental subdivision or
agency, business trust, estate, trust, partnership, association and any other legal entity
violating any of the provisions of this Ordinance shall be deemed guilty of a
misdemeanor, and upon conviction thereof shall be punishable by a fine of not less
than twenty five dollars ($25.00) and not more than five hundred dollars ($500.00) or
more than two thousand dollars ($2,000) for a violation of fire safety, zoning, or public
health and sanitation ordinances, other than the dumping of refuse. Each day such
violation shall continue or be permitted to continue, shall be deemed a separate offense.
PART 4: This Ordinance is a penal ordinance and becomes effective ten (10) days after its date
of passage by the City Council, as provided by City of College Station Charter Section
35.
PASSED, ADOPTED and APPROVED this 26th day of April 2018.
Ordinance No.________ Page 2 of 5
ATTEST: APPROVED:
__________________________________ __________________________________
City Secretary Mayor
APPROVED:
City Attorney
Ordinance No.________ Page 3 of 5
Exhibit A
That the conditional use permit affecting Boyett Estates Subdivision, Block 10, Lots 5 and 6 and
parts of Lot 1 and 2, located at 203 First Street, granted in accordance with Appendix A, “Unified
Development Ordinance,” Article 3, “Development Review Procedures,” Section 3.16,
“Conditional Use Permit,” of the Code of Ordinances of the City of College Station, Texas, be
amended in its entirety as follows:
That a Conditional Use Permit is hereby granted for a Long-Term Mobile Food Court as
provided for in the "Unified Development Ordinance," Article 3, “Development Review
Procedures,” Section 3.16, "Conditional Use Permit," of the Code of Ordinances of the City
of College Station, Texas. The property located at Boyett Estates Subdivision, Block 10, Lot
5 and 6 and parts of Lot 1 and 2, located at 203 First Street (Property) is granted a Conditional
Use Permit for a Long-Term Mobile Food Court subject to the additional condition below:
Additional Conditions for the Conditional Use Permit:
1. Sale of alcohol is limited to beer and wine sales only with such alcohol sales to end
no later than midnight.
Ordinance No.________ Page 4 of 5
EXHIBIT "B"
Ordinance No.________ Page 5 of 5
EXHIBIT "C"
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0273 Name:Annexation Ordinance – 65 Acres
Status:Type:Annexation Agenda Ready
File created:In control:4/11/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding approval of an ordinance annexing
approximately 65 acres located in the City’s ETJ on the west side of the City, generally located in the
vicinity of Rock Prairie Road West, Holleman Drive South, and North Graham Road.
Sponsors:Lance Simms
Indexes:
Code sections:
Attachments:Map of Annexation Areas
Fiscal Impact Analysis
Ordinance
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding approval of an ordinance annexing
approximately 65 acres located in the City’s ETJ on the west side of the City, generally located in the
vicinity of Rock Prairie Road West, Holleman Drive South, and North Graham Road.
Relationship to Strategic Goals:
·Good Governance
·Financially Sustainable City
·Core Services and Infrastructure
·Diverse Growing Economy
·Improving Mobility
Recommendation(s): The Planning & Zoning Commission heard this item on 15 February and voted
7-0 to recommend approval of the annexation. Staff also recommends approval of the ordinance.
Summary: This ordinance provides for the annexation of approximately 65 acres on the west side of
the City. The City Council approved an ordinance establishing two public hearings and directing staff
to prepare an annexation service plan for the area in January 2018. The two public hearings were
held on 19 March and 22 March 2018.
The annexation service plan is attached to the ordinance and effectively acts as a contract between
the City and the residents of the annexed area.
Budget & Financial Summary: See attached Fiscal Impact Analysis
Legal Review: Yes
Attachments:
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File #:18-0273,Version:1
1.Annexation Area Map
2.Fiscal Impact Analysis
3.Ordinance
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Fiscal Impact Analysis
2018 Annexation
Short-Term Fiscal Impact
Ad Valorem Tax Revenue - The current assessed value of all property in the proposed
annexation areas is $1,715,680. Based on the current City of College Station tax rate of 49.75
cents per $100 of valuation, the City could expect to receive annual property tax revenues of
approximately $8,535 from the areas. Based on the current annexation schedule, the City will
not begin receiving property tax revenues from the annexation area until late 2019.
Sales Tax Revenue – There are no retail establishments within the proposed annexation area.
Therefore, no sales tax revenue is expected from commercial establishments.
Surveying Costs - A survey of the annexation area was prepared at a cost of $4,750.00.
Compensation to Emergency Services District (ESD) No. 1 - State law requires cities to
provide compensation to the Emergency Services District for territory loss due to annexation.
The amount of compensation varies based on the appraised value of the annexation area and the
amount of the district’s debt. The proposed annexation area is currently served by Brazos
County Emergency Services District (ESD) No. 1. Therefore, the City will need to provide
compensation according to state law. For the purposes of this report, an estimated payment of
$1,000 is assumed.
Summary of Short-Term Fiscal Impact
Costs (one-time)* $(5,750)
Revenue (annual)
Property Tax $8,535
* One-time costs include an estimated $1,000 to compensate ESD No. 1 for lost territory
2
Full Build-Out Scenario
The fiscal-impact analysis used here is a tool that estimates the annual costs and revenues
that the City will incur once the annexed property is fully developed. This information is
provided to help project the need for municipal services, to monitor the costs of land use
decisions, and to give officials information for making growth and planning decisions.
For this analysis the Service Standard Method was used 1 . A spreadsheet showing the
details is included as Appendix A. This analysis should be treated as an estimate based
upon the best data available. In addition, it is important for decision makers using this
information to understand the assumptions upon which it is based.
1. In this model it is assumed that the current level of municipal services in College
Station will be maintained in the newly-annexed areas.
2. This analysis provides estimates for the area once it fully develops. The costs / benefits
in the interim may vary as the areas develop.
3. All costs and revenues are in current dollars based on curre nt budget data.
4. The model is based on existing tax and utility rates that may change over time. Future
changes to the land use plan may also alter future fiscal impacts.
Demands and Costs
This analysis uses a combination of the existing land uses and the future land use
designations in the proposed annexation area (Urban and Restricted Suburban) to estimate
the population for the annexation area. Using land use descriptions provided in the
Comprehensive Plan and densities allowed in the Unified Development Ordinance , the
number of dwelling units for the residential areas was calculated. Census data for persons
per household was then used to calculate the projected population.
Existing service levels for the City were used to estimate the demand for City services in
the proposed annexation area. An equal level of service was applied to the annexation area
to yield the demand for services. Costs per year for the demanded services were calculated
using cost ratios to compensate for the varied nature of service provided by different
departments. This resulted in a cost per year to provide the existing level of service to the
proposed annexation area at full build-out.
Revenues
Revenues were calculated for property taxes and utility fees. These estimates were
determined by applying current revenues from similar areas in the City to the projected
development pattern in the annexation areas.
1 - More information on this method is available in The Fiscal Impact Handbook by Robert Burchell & Davide Listokin
3
Conclusion
The following table summarizes the results of the fiscal-impact analysis. Based on the
results of the fiscal-impact analysis, this annexation will result in annual deficit of $137,815
upon full build-out. It is important to note that this model does not capture any revenue
from “one time” charges such as building permit fees, impact fees, or other development
related fees.
As mentioned before, future changes in the Land Use Plan or d evelopment patterns may
affect these projections. This estimate excludes any costs associated with transportation
improvements that may be the responsibility of the City.
Summary of Fiscal Impact Analysis
at Full Build Out
Costs $(1,759,175)
Property Tax Reve nue $885,366
Sales Tax revenue $358,402
Utility Revenue $377,592
Total Annual Fiscal Impact $(137,815)
Note: One-time fees (building permit fees, impact fees, and sewer connection fees)
are expected to generate $3,769,135 as the areas develop
4
Methodology for Revenue Calculations
Property Taxes
$268,421 = Median assessed valuation for homestead properties. Value is based on information
provided by Brazos County Appraisal District and current City property tax rate (49.75 cents per $100
of appraised valu e).
Residential Utility Amounts
$14.40 = Monthly residential s anitation fee
$7.78 = Monthly residential roadway maintenance fee
$5.00 = Monthly residential drainage maintenance fee
$20.28 = Monthly residential wastewater fee
Retail Sales Tax
Per capital retail sales tax was calculated based on a per person sales tax rate collection of $242
annually. This average was obtained by taking the FY 2017 sales tax revenue collected by the City and
dividing it by the estimated po pulation.
(Annual Sales Tax Collection / Population Estimate) = Annual Sales Tax Collected per Person
Utility Charges
Electricity
The proposed annexation area is served by Bryan Texas Utilities . No electric utility revenue is expected
from the area.
Water
The proposed annexation area is served by Wellborn Special Utility District. No water revenue is
anticipated from the area.
Wastewater
It is estimated that, upon build -out, the City will have 663 new residential s ewer connections with a
monthly rate of $20.28 each. This is a conservative estimate obtained from Utility Billing)
Sanitation
The proposed annexation area will have City sanitation services. Revenues were calculated by multiplying
the monthly residential rate ($14.40) by the estimated number o f residential units (663) in the area.
Roadway Maintenance
It is estimated that, upon build -out, the City will have 663 new residential units with a monthly roadway
maintenance fee of $7.78 per month .
Drainage Maintenance
It is estimated that, upon build -out, the City will have 663 new residential units with a monthly drainage
maintenance fee of $5.00 per month.
5
Anticipated Government Number of Manpower Budget $ Per Future Add’l Annual Capital to Add’l Annual Total Cost
Population Function Employees Ratio 2017 - 2018 Employee Employees Operating Cost Operating Capital Cost To Public
1,481 Fiscal Services 46.00 0.39 4,042,380$ 87,878$ 0.58 50,804$ 0.004 203$ 51,007$
General Government 188.25 1.60 26,814,496 142,441 2.37 336,999 0.010 3,370 340,369
Police 220.50 1.87 23,026,482 104,428 2.77 289,392 0.058 16,785 306,177
Total February Fire 160.00 1.36 18,975,543 118,597 2.01 238,480 0.063 15,024 253,505
2018 Population Streets/Traffic/Drainage 51.00 0.43 11,210,456 219,813 0.64 140,891 0.777 109,472 250,363
Wastewater 49.00 0.42 6,900,935 140,835 0.62 86,729 1.936 167,908 254,638
117,841 Sanitation 37.50 0.32 8,745,202 233,205 0.47 109,908 0.114 12,529 122,437
Utility Billing 23.00 0.20 3,054,322 132,797 0.29 38,386 0.010 384 38,770
Parks 70.75 0.60 9,069,576 128,192 0.89 113,984 0.245 27,926 141,911
Total College Station 846.00 111,839,392$ 10.63 1,405,573$ 353,602$ 1,759,175$
General Government includes: General Government, Information Technology, Planning and Development Services, Public Works (Admin, Facilities Maint,
Engineering, Landscape and Irrigation Maint.) Fleet Maint., and Insurance Funds
Notes:
1. Capital to operating cost ratios from Finance Dept.
2. Future population calculated according to acreage in land use scenarios, then existing population was subtracted.
3. The City will not be providing water service in this area.
3. The City will not be providing electrical service in this area.
- -
Appendix A
6
Appendix B
1
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF COLLEGE STATION, TEXAS, PROVIDING FOR THE
EXTENSION OF THE BOUNDARY LIMITS OF THE CITY OF COLLEGE STATION, ANNEXING
CERTAIN TERRITORIES ADJACENT TO THE PRESENT BOUNDARY LIMITS OF THE CITY
OF COLLEGE STATION; APPROVING A SERVICE PLAN FOR THE ANNEXED PROPERTIES;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of College Station as a home-rule city has the power by
ordinance to fix the boundary limits of the City of College Station and to provide for the extension of
such boundary limits and the annexation of additional territory lying adjacent to the City of College
Station by the City Charter of the City of College Station, Texas, Article II, Section 7 and other legal
authority; and
WHEREAS, on January 25, 2018, the City Council of the City of College Station directed staff to
prepare a service plan for approximately 65 acres of land identified for annexation; and
WHEREAS, the City Council finds that all the required notices were given in the time and manner
required by law; and
WHEREAS, two public hearings before the City Council were held on March 19, 2018 and on March
22, 2018 in the City Hall Council Chambers. Both public hearing dates being on or after the 20th day but
before the 40th day before the date of the institution of the annexation proceedings to allow all interested
persons to state their views regarding the annexation; and
WHEREAS, the City Council finds that the annexation will ensure consistent and orderly development
of the annexed area; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS:
PART 1: The facts and recitations set forth in the preamble of this Ordinance are declared true
and correct.
PART 2: The tracts of land described in Exhibit “1”, attached hereto and made a part of this
Ordinance for all purposes, is hereby added to and annexed by the City of College
Station, Texas.
PART 3: The Service Plan, Exhibit “2”, attached hereto and made a part of this Ordinance for all
purposes, which provides for the extension of municipal services to the annexed
properties, is approved as part of this Ordinance. The Service Plan was made available
for public inspection and explained at the public hearings held on March 19, 2018 and
March 22, 2018.
PART 4: Should any part of this Ordinance be held illegal or invalid for any reason, or the
application of same to one or more properties or portions of property described in this
Ordinance, the holding shall not affect the remaining sections or portion of sections or
provisions nor the remaining properties or portion of affected property thereof of this
Ordinance.
PART 5: That upon final approval and after the effective date of this ordinance, all property
annexed shall be zoned R (Rural).
2
PART 6: That, upon final passage hereof and after the effective date of this Ordinance, the
annexed territory shall be a part of the City of College Station, Texas, and the properties
situated shall bear its pro rata portion of the taxes levied by the City of College Station
and the inhabitants thereof shall be entitled to all of the rights and privileges of all the
citizens and shall be bound by the acts, ordinances, resolutions, and regulations of the
City of College Station.
PART 7: That this Ordinance shall become effective on the 1st day of June, 2018.
PASSED, ADOPTED and APPROVED this 26th day of April, 2018.
APPROVED:
______________________________
Mayor
ATTEST:
____________________________
City Secretary
APPROVED:
____________________________
City Attorney
3
EXHIBIT 1
Description of Annexation Areas
Brazos County, Texas
Proposed Annexation Area 1
~16.3 Acres – White Tract
Peter Norton Survey
Brazos County, Texas
February 2018
All that certain tract or parcel of land lying and being situated in the Peter Norton Survey, Abstract No.
186, in Brazos County, Texas, being the remainder of that 18.5 acre tract conveyed to Abner Lee White
by deed recorded in Volume 128, Page 378 of the Deed Records of Brazos County, Texas, a part of that
89.5 acre tract conveyed to Abner White by deed recorded in Volume 984, Page 567 of the Official
Records of Brazos County, Texas, a part of that 5.00 acre tract conveyed to Lover White Goodman -
Woods by deed recorded in Volume 9338, Page 243 of the Official Public Records of Brazos County,
Texas, and all of that 1.50 acre tract conveyed to Wilbert Earl Bledsoe by deed recorded in Volume
10063, Page 94 of the Official Public Records of Brazos County, Texas, being the same tract excepted
from annexation into the City of College Station by ordinance no. 3049 (exhibit “A4”, “WHITE
TRACT”), and being more particularly described as follows:
Beginning in the center of a tributary of Hope’s Creek at the south corner of the said 18.5 acre tract, at
a point located N 42° 28’ 16” E – 214 feet from the east corner of Sherwood Heights Section 3 as
described by plat recorded in Volume 385, Page 665 of the Deed Records of Brazos County, Texas.
Thence N 42° 28’ 16” E – 2134 feet generally along a fence line on the southeast line of the said Abner
White tract to the east corner of this tract in the southwest line of that 1.000 acre tract conveyed to
Monique Goodman and Alfredo Lopez, Jr. by deeds recorded in Volume 7678, Page 264 and Volume
13597, Page 147 of the Official Public Records of Brazos County, Texas;
Thence N 47° 49’ 48” W – 313.55 feet along said Goodman line to the southeast right-of-way line of
Rock Prairie Road West, at a point from where City of College Station GPS control monument no. 117
bears N 55° 33’ 59” E – 2614.7 feet;
Thence S 41° 46’ 38” W – 103.24 feet along the southeast right-of-way line of Rock Prairie Road West
to the beginning of a tangent curve to the right with a radius of 600.00 feet;
Thence along the arc of said curve in the southeast right-of-way line of Rock Prairie Road West through
a central angle of 25° 36’ 34”, the chord of which bears S 54° 34’ 55” W – 265.95 feet, to its intersection
with the northwest line of the said 18.5 acre tract;
4
Thence generally along the northwest fence line of the said 18.5 acre tract as follows:
S 41° 51’ 33” W – 942 feet;
S 40° 47’ 06” W – 785 feet to the center of said tributary of Hope’s Creek;
Thence down the center of said creek with its meanders, for reference a straight line bears S 40° 18’ 04”
E – 337.62 feet, to the Point of Beginning and containing 16.3 acres of land more or less, based on
current creek meanders.
Bearings are Texas State Plane, NAD-83 datum, based on City of College Station GPS control
monuments and GPS observations.
This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground
survey and is not to be used to convey or establish interests in real property except those rights and
interests implied or established by the creation or reconfiguration the boundary of the political
subdivision for which it was prepared.
See survey plat dated February 2018.
5
Proposed Annexation Area 2
1.97 Acres – Williams Tract
P. Norton and T. Henry Surveys
Brazos County, Texas
February 2018
All that certain tract or parcel of land lying and being situated in the Peter Norton Survey, Abstract No.
186, and Thomas Henry Survey, Abstract No. 132 in Brazos County, Texas, being all of that 2.00 acre
tract conveyed to Ervin M. Williams, Sr. and wife, Mildred Williams by deed recorded in Volume 976,
Page 782 of the Official Records of Brazos County, Texas, and partially conveyed to Deborah Lynn
Williams by deed recorded in Volume 12187, Page 91 of the Official Public Records of Brazos County,
Texas, and being more particularly described as follows:
Beginning at the common corner of the said Williams tract and that 1.286 acre tract conveyed to Casey
Scott and Lydia Scott by deed recorded in Volume 12069, Page 165 of the Official Public Records of
Brazos County, Texas, in the northwest line of North Graham Road, from where City of College Station
GPS control monument no. 117 bears N 23° 15’ 13” E – 2472.5 feet;
Thence along the present city limits of College Station as defined by ordinance no. 3049 (exhibit “A4”)
and around the boundary of the said Williams tract as follows:
N 47° 29’ 14” W – 521.41 feet;
S 41° 19’ 00” W – 164.31 feet;
S 47° 22’ 19” E – 517.98 feet to the south common corner of the Williams tract and that
11.26 acre tract conveyed to Ovais, Incorporated by deed recorded in Volume 6863, Page 86 of the
Official Public Records of Brazos County, Texas;
Thence N 42° 30’ 46” E – 165.32 feet, along the northwest line of North Graham Road and southeast
boundary of the said Williams tract, to the Point of Beginning and containing 1.97 acres of land more
or less.
Bearings are Texas State Plane, NAD-83 datum, based on City of College Station GPS control
monuments and GPS observations.
This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground
survey and is not to be used to convey or establish interests in real property except those rights and
interests implied or established by the creation or reconfiguration the boundary of the political
subdivision for which it was prepared.
See survey plat dated February 2018.
6
Proposed Annexation Area 3
26.37 Acres – Mikeska Tract
C. Burnett and R. Stevenson Leagues
Brazos County, Texas
February 2018
All that certain tract or parcel of land lying and being situated in the Crawford Burnett League, Abstract
No. 7, and Robert Stevenson League, Abstract No. 54, in Brazos County, Texas, being all of Lots 2R,
3R, 4R, 5R, and part of Lot 7R, Block Two of Rock Prairie West Business Park as described by plat
recorded in Volume 6121, Page 222 of the Official Public Records of Brazos County, Texas, also the
remainder of that 32.81 acre tract conveyed to Joseph A. Mikeska, Jr. and Dorothy T. Mikeska by deed
recorded in Volume 414, Page 203 of the Deed Records of Brazos County, Texas, along with the
adjacent right-of-way of North Graham Road, and being more particularly described as follows:
Beginning at the south corner of Lot 1R, Block Two of said Rock Prairie West Business Park, also being
a common corner with said Lot 2R and a south corner of the existing city limits of College Station as
defined by ordinance no. 3049 (exhibit “A3”), from where City of College Station GPS control
monument no. 117 bears N 76° 41’ 29” W – 623.7 feet.
Thence S 47° 42’ 52” E – 633.62 feet, along the southwest boundary of said Lot 2R and said 32.81 acre
tract, and continuing across North Graham Road to a northwest boundary line of that 99.474 acre tract
conveyed to Sunset Ridge, L.L.P. by deed recorded in Volume 7201, Page 267 of the Official Public
Records of Brazos County, Texas;
Thence N 42° 53’ 38” E – 858.73 feet along the said northwest line of said 99.474 acre tract to its north
corner;
Thence S 47° 53’ 50” E – 12.45 feet, along a northeast line of said 99.474 acre tract, to a tree and
common fence corner of the 99.474 acre tract and that 166.09 acre (net) tract conveyed to Thomas Craig
Hill, et al by deed recorded in Volume 12476, Page 66 of the Official Public Records of Brazos County,
Texas, and also being a west corner of the existing city limits of College Station as defined by ordinance
no. 2219 (Wellborn Road Area);
Thence N 41° 08’ 39” E – 384.96 feet, along a northwest line of said existing city limits defined by
ordinance no. 2219, to a south corner of the existing city limits of College Station as defined by
ordinance no. 2590 (exhibit “A-1”);
Thence N 47° 42’ 52” W – 862.59 feet, across North Graham Road and along a southwest line of the
existing city limits defined by said ordinance no. 2590 and the northeast lines of said Mikeska 32.81
acre tract and Lot 7R, Block Two of said Rock Prairie West Business Park, to the east corner of the
existing city limits of College Station as defined by ordinance no. 3118;
Thence S 42° 17’ 08” W – 267.59 feet, through said Lot 7R and continuing along the common line of
Lots 6R and 2R of said Rock Prairie West Business Park, also being along the southeast lines of the
7
said existing city limits defined by ordinance no. 3118 and ordinance no. 3049 (exhibit “A3”),
to the south common corner of Lots 5R and 6R;
Thence N 47° 42’ 54” W – 330.63 feet, along a southwest line of the existing city limits defined
by said ordinance no. 3049, and along the common line of said Lots 5R and 6R to their north
common corner in the southeast right-of-way line of Rock Prairie Road West (formerly named “Gandy
Road”);
Thence S 42° 17’ 08” W – 534.80 feet, along the said southwest line of Rock Prairie Road West and a
southeast line of the existing city limits as defined by said ordinance no. 3049, to the north common
corner of said Lots 1R and 2R;
Thence S 47° 42’ 54” E – 543.85 feet, along a common line of said Lots 1R and 2R and a northeast line
of the existing city limits as defined by said ordinance no. 3049, to the east corner of Lot 1R;
Thence S 42° 02’ 45” W – 441.22 feet, along another common line of said Lots 1R and 2R and a
southeast line of the existing city limits as defined by said ordinance no. 3049, to the Point of Beginning
and containing 26.37 acres of land more or less.
Bearings are Texas State Plane, NAD-83 datum, based on City of College Station GPS control
monuments and GPS observations.
This document was prepared under 22 TAC §663.21 does not reflect the result s of an on the ground
survey and is not to be used to convey or establish interests in real property except those rights and
interests implied or established by the creation or reconfiguration the boundary of the political
subdivision for which it was prepared.
See survey plat dated February 2018.
8
Proposed Annexation Area 4
23.00 Acres – Mayo Tract
Crawford Burnett League
Brazos County, Texas
February 2018
All that certain tract or parcel of land lying and being situated in the Crawford Burnett League, Abstract
No. 7, in Brazos County, Texas, being all of that 2.00 acre Tract One and 20.00 acres out of that 23.00
acre Tract Two conveyed to Henry P. Mayo and wife, Sandra K. Mayo by deed recorded in Volume
1253, Page 878 of the Official Records of Brazos County, Texas, and being more particularly described
as follows:
Beginning at the common corner of the said 2.00 acre Tract One and 23.00 acre Tract Two in the
northwest right-of-way line of Rock Prairie Road West (formerly named “Gandy Road”), from where
City of College Station GPS control monument no. 117 bears S 32° 42’ 46” W – 602.0 feet.
Thence N 42° 17’ 08” E – 208.71 feet along the said northwest right-of-way line and also a northwest
line of the existing city limits of College Station as defined by ordinance no. 3049 (exhibit “A3”) to the
east corner of Tract One;
Thence N 47° 42’ 52” W – 1593.40 feet, along the northeast lines of said Tract One and Tract Two, also
being a southwest line of the existing city limits as defined by said ordinance no. 3049, and the southwest
boundary lines of 12 at Rock Prairie Phases 1, 2 and 3, as described by plats recorded in Volume 12464,
Page 180, Volume 13156, Page 277 and Volume 13176, Page 209 of the Official Public Records of
Brazos County, Texas, to the north corner of Tract Two in a southeast line of the existing city limits of
College Station as defined by ordinance no. 2590 (exhibit “A-1”);
Thence S 41° 23’ 08” W – 685.98 feet, along the northwest line of said Tract Two and along the said
city limits defined by ordinance no. 2590 and southwest boundary of that 23.707 acre tract conveyed to
DWS Development, Inc. by deed recorded in Volume 13509, Page 164 of the Official Public Records
of Brazos County, Texas, to the west corner of Tract Two, also being the north corner of that tract of
land conveyed to Oak Creek, L.L.P. by deed recorded in Volume 4030, Page 98 of the Official Public
Records of Brazos County, Texas;
Thence S 47° 42’ 52” E – 1363.62 feet, along the common boundary of said Mayo Tract Two and said
Oak Creek, L.L.P. tract, to a corner of the existing city limits as defined by said ordinance no. 3049
located approximately 217 feet northwest of the northwest line of Rock Prairie Road West;
Thence through the said Mayo Tract Two, along existing city limits lines defined by said ordinance no.
3049 as follows:
N 42° 17’ 08” E – 200.00 feet;
N 47° 42’ 52” W – 94.57 feet;
N 42° 17’ 08” E – 277.19 feet to a point in the southwest line of said Tract One;
9
and S 47° 42’ 52” E – 313.58 feet along a common line of the said Mayo tracts to the Point of
Beginning and containing 22.00 acres of land more or less.
Bearings are Texas State Plane, NAD-83 datum, based on City of College Station GPS control
monuments and GPS observations.
This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground
survey and is not to be used to convey or establish interests in real property except those rights and
interests implied or established by the creation or reconfi guration the boundary of the political
subdivision for which it was prepared.
See survey plat dated February 2018.
10
Survey Plat
EXHIBIT 2
CITY OF COLLEGE STATION SERVICE PLAN
FOR THE AREAS TO BE ANNEXED
EFFECTIVE JUNE 1, 2018
11
EXHIBIT 2
CITY OF COLLEGE STATION SERVICE PLAN
FOR AREAS TO BE ANNEXED
EFFECTIVE 1 JUNE 2018
I. ANNEXATION AREAS
The annexation areas are located on the west side of the City, in College Station's Extraterritorial
Jurisdiction. These properties are illustrated in Figure 1 and further described below.
Area 1 - Approximately 16 acres located on the south side of Rock Prairie Road
West near the intersection of Holleman Drive South
Area 2 - Approximately two acres located on the north side of North Graham Road
near the intersection of Holleman Drive South
Area 3 - Approximately 26 acres located between Rock Prairie Road West and
North Graham Road
Area 4 - Approximately 22 acres located at the intersection of Rock Prairie Road
West and Towers Parkway
II. INTRODUCTION
This service plan has been prepared in accordance with the TEXAS LOCAL GOVERNMENT CODE,
Sections 43.003, 43.065, and 43.056(b)-(o) (Vernon 1999, AND VERNON SUPP. 2007, as amended from time
to time). Municipal facilities and services to the annexed areas described above will be provided or made
available on behalf of the City in accordance with the following plan. This plan provides a program under
which the City of College Station will provide full municipal services to the annexed areas. All services
will be provided within the time provided in TEXAS LOCAL GOVERNMENT CODE, Section 43.056(B).
This Service Plan does not:
require the creation of another political subdivision;
require a landowner in the area to fund the capital improvements necessary to provide
municipal services in a manner inconsistent with Chapter 395, Texas Local
Government Code; or
provide services in the area in a manner that would have the effect of reducing by more
than a negligible amount the level of fire and police protection and emergency medical
services provided within the corporate boundaries of the municipality before
annexation.
The level of services, infrastructure, and infrastructure maintenance provided to the annexed areas is
comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts
of the City with topography, land use, and population density similar to those contempla ted or projected in
the annexed area.
12
FIGURE 1
13
III. SERVICE COMPONENTS
This plan contains three service components: (1) Immediate Services, (2) Additional Services, and (3) Capital
Improvement Program.
Immediate Services
As required by TEXAS LOCAL GOVERNMENT CODE, SECTION 43.056(B), Certain municipal services will be
provided by the City of College Station immediately upon the effective date of annexation. These services
include:
police protection;
fire protection;
emergency medical services;
solid waste collection, except as provided by Subsection 43.056(o);
operation and maintenance of water and wastewater facilities in the annexed area that are
not within the service area of another water or wastewater utility;
operation and maintenance of roads, and streets, including road and street lighting;*
operation and maintenance of public parks, playgrounds, and swimming pools; and
operation and maintenance of any other publicly owned facility, building, or service.
*Note: Street lighting will be maintained for fixtures located within the service territory of
College Station Utilities.
A. Police Protection
The College Station Police Department will provide police service, including routine patrol, traffic
enforcement, and dispatch response to emergency and non -emergency service calls.
B. Fire Protection
The College Station Fire Department will provide fire protection, including response to emergency calls
for assistance, fire prevention education, pre-fire planning, and target hazard inspections. In general, the
Fire Department’s goal is to provide a fire response time of five minutes or less.
Construction and development activities undertaken after the effective date of annexation shall comply
with all building, life safety and fire safety codes of the City of College Station. All structures shall
comply with the address standards of the College Station Code of Ordinances within ninety (90) days of
the effective annexation date.
C. Emergency Medical Services
The College Station Fire Department will provide emergency medical services (EMS). Each Fire
Department ambulance, engine, and ladder truck is capable of providing EMS, including defibrillation,
medical administration, IV therapy, advanced airway management, and initial treatment of injuries. In
general, the Fire Department’s goal is to provide an EMS response time of five minutes or less.
D. Solid Waste Collection
The College Station Public Works Department will provide fee-based solid waste collection service for
residential and commercial customers. Customers in the annexed area may elect to continue using a
private solid waste management service provider for a period of two years after the effective date of
annexation in accordance with provisions of the TEXAS LOCAL GOVERNMENT CODE. The City will not
charge a fee to a person who continues to use the services of a privately-owned solid waste management
service provider during the two year period referenced above.
Residential Service – Residential solid waste collection (including brush and bulk items) is provided
once per week. All residential service will be provided at a point of collection adjacent to, and accessible
14
from, a public right-of-way or an improved surface acceptable to the City. Residential solid waste
collection vehicles will not conduct operations on private property. However, residential service may be
provided on private streets that comply with the Sanitation Division’s requirements for surface material,
vehicle clearance and turning radii. In the case of multiple residences located on a privately owned road
or drive, the City may require the establishment o f a mass collection point at an area adjacent to the
nearest public right-of-way. The City will provide residential solid waste containers.
Commercial Service - Containers and collection points may be located on private property, provided that
it can be easily accessed from a public right-of-way, and both the route of access and the collection point
meet the Sanitation Division’s requirements for approved surfaces, vehicle clearance and turning radii.
The City will provide standard commercial containers.
In order to secure solid waste collection services in the annexed areas, each property owner must
establish a utility account with the City of College Station. The City will not be responsible for damage
to private drives, streets, or parking areas by sanitation trucks servicing containers.
E. Water and Wastewater Facilities
The City of College Station will provide water and wastewater service to areas that are not located within
the certificated service territory of another utility through existing facilities located within or adjacent to
the area. The level of water and wastewater service, infrastructure and infrastructure maintenance
provided in the annexed area will be comparable to the level of services, infrastructure and infrastructure
maintenance available in other parts of the City before annexation with topography, land use, and
population density similar to those reasonably contemplated or projected in the area. Municipal services
to be provided within the annexed area may be provided by any of the methods in which the City provides
services to other comparable areas.
F. Roads and Streets
The Public Works Department will maintain public roads and streets at a level comparable to the
maintenance prior to annexation. These services include emergency pavement repair and preventative
street maintenance. Right-of-way mowing activities along State highways are addressed in the City's
maintenance agreement with Texas Department of Transportation and will be added to the City's
maintenance activities immediately following annexation. Maintenance priorities are determined on a
City-wide basis taking into consideration factors such as age, traffic volume, surface conditions, nature
of the maintenance, public safety hazards, and available funding.
Existing street and traffic control signs shall conform to the City of College Station’s standards within
ninety (90) days of the annexation. The City will install public street signs in accordance with College
Station’s standards for same within ninety (90) days of the effective date of annexation.
G. Parks and Recreation Facilities
The City of College Station is not aware of the existence of any public parks, playgrounds or swimming
pools in the areas proposed for annexation. In the event any such public facilities exist, they will be
maintained to the same degree and extent that the City maintains public parks, pl aygrounds and
swimming pools within the current City limits.
H. Other Publicly Owned Buildings and Facilities
The City of College Station is not aware of the existence of any publicly owned buildings in the areas
proposed for annexation. In the event any such public facilities exist, they will be maintained to the
same degree and extent that the City maintains such facilities within the current City limits.
15
Additional Services
A. Building Permitting and Inspections
Upon the effective date of annexation, the City will provide building permits and inspection services.
This service will be made available to the annexed areas on the same basis and at the same level of
service as similar facilities throughout the City. Service is provided on a “cost recovery” basis, and
permit fees partially offset the costs of services delivered. Construction activities underway prior to
annexation may continue provided that all construction after annexation complies with City codes and
ordinances.
All permits required by City codes and ordinances must be obtained for construction underway at the
time of annexation. Permit fees will be waived for building construction underway prior to the effective
date of annexation.
B. Planning and Development Services
Planning and development services will be made available on the effective date of annexation. Planning
& Development Services currently services this property by way of administration of the Subdivision
Regulations contained in the Unified Development Ordinance.
Upon annexation, planning and development services will be provided by way of the Unified
Development Ordinance and other applicable codes and standards. The College Station City Council
adopted the current Comprehensive Plan in 2009. The Comprehensive Plan contains a Land Use Plan
that designates future land uses to manage the quality and quantity of growth by matching land use
intensity with planned infrastructure. Upon annexation, all properties will be zoned R (Rural). The City's
Comprehensive Plan will be used as the basis for evaluating rezoning requests after properties are
annexed.
C. Animal Control
The Police Department will provide animal control service upon the effective date of annexation. Animal
control services include response and investigation of reported animal bites, response to reports of stray
or “at large” animals, and response and investigation of animal cruelty and neglect reports.
D. Community Services
Community services will be provided upon the effective date of annexation. Community services include
response and investigation of code enforcement issues such as trash, illegal signs , abandoned or
inoperable motor vehicles, and zoning violations. Community Services also administers the federal funds
received from the Department of Housing and Urban Development through the Community
Development Block Grant and the HOME Investment Partnership grant.
E. Recycling Collection
For residential customers electing solid waste collection from the City of College Station, curbside
recycling collection is also provided once per week. Items accepted in the curbside recycling program
include:
Newspapers and magazines
Aluminum and steel food cans
Clear and brown glass
Plastic bottles
Lead acid car batteries
.
16
WATER AND WASTEWATER SERVICE PROVISION
This Water and Wastewater Service Plan (“Plan”) provides a program under which the C ity of College Station
will provide full municipal services to the annexed area. For the purpose of this plan, “full municipal services”
includes water and sewer services provided by the City within its full -purpose boundaries. The level of water
and sewer service, infrastructure and infrastructure maintenance provided in the annexed area will be
comparable to the level of services, infrastructure and infrastructure maintenance available in other parts of the
City before annexation with topography, land u se, and population density similar to those reasonably
contemplated or projected in the area. Municipal services to be provided within the annexed area may be any
of the methods by which the City provides services to other comparable areas. All services w ill be provided
within the time provided in TEXAS LOCAL GOVERNMENT CODE SEC. 43.056(B). The City may extend facilities
under this plan or otherwise serve this area through the use of Impact Fees as permitted under CHAPTER 395 OF
THE TEXAS LOCAL GOVERNMENT CODE.
Water and Wastewater facilities for future development that increases densities beyond the capital
improvements specified in this plan will be extended in accordance with the City’s Water and Wastewater
policy in existence at the time of development. The water and wastewater extension policy is discussed in
Section IV, Water and Wastewater Capital Improvements. In general, the policy for extension of utility service
is “development driven” in that utility line extensions are typically installed by developer s, in conjunction with
major development projects. The City may accept ownership and maintenance of major facilities, such as
gravity sewer lines, manholes, lift stations and/or wastewater package plants, as required by the particular
development. The City may elect to pay for upgrades or oversize of infrastructure projects being installed by
developers. As an area develops, developers or homeowners extend water distribution and wastewater
collection lines to individual lots.
Until an area becomes densely populated, the cost of utility extension is not feasible to be borne by a few lot
owners. Also, in the case of wastewater treatment, developments with large lots will normally be constructed
with on-site sewage facilities that are privately owned and operated.
AREA 1
Water
Water service in Annexation Area 1 is currently provided by and located within the water service
territory of Wellborn Special Utility District. The City of College does not have the right to provide
water service in Area 1, therefore, no water infrastructure will be provided by the City in the area after
annexation.
Wastewater
Annexation Area 1 is currently vacant. As in other areas of College Station with similar topography,
land use, and population density, this area will be served by a private sewer system until such time as
significant development occurs to warrant the extension of an organized sanitary sewer collection
system.
AREA 2
Water
Water service in Annexation Area 2 is currently provided by and located within the water service
territory of Wellborn Special Utility District. The City of College does not have the right to provide
water service in Area 2, therefore, no water infrastruct ure will be provided by the City in the area after
annexation.
Wastewater
Wastewater service in Annexation Area 2 is currently provided by a private on -site sewer treatment
facility. As in other similarly developed areas of College Station, the property in Area 2 will remain on
17
a private system until such time as significant development occurs to warrant the extension of an
organized sanitary sewer collection system.
AREA 3
Water
Water service in Annexation Area 3 is currently provided by and located within the water service
territory of Wellborn Special Utility District. The City of College does not have the right to provide
water service in Area 3, therefore, no water infrastructure will be provided by the City in the area after
annexation.
Wastewater
Wastewater service in Annexation Area 3 is currently provided by a private on -site sewer treatment
facility. As in other areas of College Station with similar topography, land use, and population density,
the area will remain on a private system until such time as significant development occurs to warrant the
extension of an organized sanitary sewer collection system.
AREA 4
Water
Water service in Annexation Area 4 is currently provided by and located within the water service territory of
Wellborn Special Utility District. The City of College does not have the right to provide water service in Area
1, therefore, no water infrastructure will be provided by the City in the area after annexation.
Wastewater
Wastewater service in Area 4 is currently provided by a private on-site sewer treatment facility.
However, it is located adjacent to a development served by the City of College Station. Pubic sewer is
available via existing lines adjacent to Area 4 but the sewer capacity is limited to approximately 10
dwelling units per acre.
As in other areas of College Station with similar topography, land use, and population density, the area
will continue to be served by a private sewer system until such time as significant development occurs
to warrant the extension of an organized sanitary sewer collection system.
18
IV. CAPITAL IMPROVEMENTS
Should the City make capital improvements to serve the annexed areas, the City reserves the right to levy an
impact fee to the properties annexed according to Chapter 395 of the Texas Local Government Code and the
City's Code of Ordinances. The City may, from time to time, include construction of new, expanded or
replacement facilities in its Capital Improvements Program (CIP). Facilities to be included in the CIP shall be
determined on a City-wide basis. Priorities shall be established by the CIP plans of the City, projected growth
trends, and the City Council through its development plans and policies.
A. Police Protection (including animal control)
Police protection will be provided to the annexed areas through existing City facilities at a level of
service comparable to the level of service in other parts of the City before annexation with topography,
land use, and population density similar to those reasonably contemplated or projected in the area.
B. Fire Protection (including EMS and Community Enhancement)
Fire protection will be provided to the annexed areas through existing City facilities and mutual aid
agreements at a level of service comparable to the level of service in other parts of the City before
annexation with topography, land use, and population density similar to those reasonably contemplated
or projected in the area.
The City will evaluate and update, as needed, its Strategic Plan to address the response time, personnel,
facility and equipment needs for these areas of the City as the annexed areas develop.
C. Solid Waste Collection
Solid waste collection services will be provided to the annexed areas through the City's existing facilities
or through franchise agreements with private services at a level of service comparable to the level of
service in other parts of the City before annexation with topography, land use, and population density
similar to those reasonably contemplated or projected in the area.
D. Maintenance of Public Roads and Streets
Right-of-way maintenance will be provided through the existing facilities at a level of service not less than
exists in the area immediately preceding annexation. The improvement and enlargement of roads within
existing rights-of-way will be included in future capital improvements programs as practical and where
needed to facilitate the maneuvering of emergency and sanitation service vehicles.
E. Parks, Playgrounds and Swimming Pools
Parks and recreation services will be provided through the existing facilities at a level of service not less
than exists in the area immediately preceding annexation.
Additional park development in the annexed areas will be addressed through the development standards
and procedures of the City as residential development occurs. Such park development includes, but is not
limited to, dedication of park land and/or money i n lieu of land in accordance with the City of College
Station Subdivision Regulations.
F. Other Public Building and Facilities
Other public facilities, buildings or services will be provided through the existing facilities at a level of
service not less than exists in the area immediately preceding annexation.
19
WATER AND WASTEWATER CAPITAL IMPROVEMENTS
The water and wastewater utility extension policy of the City of College Station is as follows:
The cost of off-site extension of water and wastewater facilities to serve a lot, tract, plat, or land development
shall be borne by the owner or developer of the lot, tract, plat, or land by direct installation or through the use
of Impact Fees. Where such extension is consistent with plans for the development of the City and its utility
system the City may, by decision of the City Council, participate in the cost of construction so as to provide
for additional capacity for the overall development of an area.
The cost of water and wastewater facilities necessary to serve existing lots or new development within a
subdivision plat or land development shall be borne by the lot owner or developer of the plat or land by direct
installation or through the use of Impact Fees. Standard connection fees or other installation fees in effect on
a citywide basis are in addition to impact fees levied.
AREA 1
Water
Area 1 is located within the water CCN service territory of Wellborn Special Utility District. No water
infrastructure will be provided by the City to this area after annexation. Properties located within the
water CCN service territory of Wellborn Special Utility District will continue to be served by Wellborn
Special Utility District after annexation.
Wastewater
Area 1 will be served by private on-site sewer treatment systems until such time as development
warrants the extension of an organized sanitary collection system.
AREA 2
Water
Area 2 is located within the water CCN service territory of Wellborn Special Utility District. No water
infrastructure will be provided by the City to this area after annexation. Properties located within the
water CCN service territory of Wellborn Special Utility District will continue to be served by Wellborn
Special Utility District after annexation.
Wastewater
Area 2 will continue to be served by a private on-site sewer treatment system until such time as
development warrants the extension of an organized sanitary collection system.
AREA 3
Water
Area 3 is located within the water CCN service territory of Wellborn Special Utility District. No water
infrastructure will be provided by the City to this area after annexation. Properties located within the
water CCN service territory of Wellborn Special Utility District will continue to be served by Wellborn
Special Utility District after annexation.
Wastewater
Area 3 will continue to be served by a private on-site sewer treatment system until such time as
development warrants the extension of an organized sanitary collection system.
AREA 4
Water
Area 4 is located with the water CCN service territory of Wellborn Special Utility District. Therefore,
no water infrastructure will be provided by the City to this area after annexation. Properties located
20
within the water CCN service territory of Wellborn Special Utility District will continue to be served by
Wellborn Special Utility District after annexation
Wastewater
Area 4 will continue to be served by a private on-site sewer treatment system until such time as
development and/or redevelopment warrants the extension of an organized sanitary sewer collection
system. Sewer capacity is currently available via public lines in the adjacent development and may be
extended per the City’s wastewater utility extension policy.
V. LEVEL OF SERVICES TO BE PROVIDED
It is the intent of the City of College Station to provide the level of services required by State law. The City
Council finds and determines that the services, infrastructure and infrastructure maintenance proposed by thi s
plan are comparable to that provided to other parts of the City with topography, land use, and population
density reasonably similar to the annexed area and will not reduce the level of services available to the
territory prior to annexation.
Nothing in this plan shall require the City to provide a uniform level of full municipal services to each area of
the City, including the annexed area, if different characteristics of topography, land use, and population density
are considered a sufficient basis for providing different levels of service.
VI. TERM
This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion
of City Council.
VII. AMENDMENTS
The service plan may be amended if the City Council d etermines at a public hearing that changed conditions
or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the
service plan to conform to the changed conditions or subsequent occurrences pursuant to the TEXAS LOCAL
GOVERNMENT CODE, Section 43.056 (Vernon 1999 and Vernon Supp. 2007).
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0286 Name:Certificate of Oligation
Status:Type:Ordinance Agenda Ready
File created:In control:4/17/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion concerning adoption of an ordinance authorizing the
issuance of up to $55,000,000 in principal amount of “City of College Station, Texas Certificates of
Obligation, Series 2018”; delegating the authority to certain City Officials to execute certain
documents relating to the sale of the certificates; approving and authorizing instruments and
procedures relating to the certificates; and enacting other provisions relating to the subject.
Sponsors:Mary Ellen Leonard
Indexes:
Code sections:
Attachments:2018 Debt Issue - draft
Ordinance (CO) (ver 1).pdf
College Station, Series 2018 CO - Draft POS 2 (Legistar).pdf
Action ByDate Action ResultVer.
Presentation,possible action,and discussion concerning adoption of an ordinance authorizing the issuance
of up to $55,000,000 in principal amount of “City of College Station,Texas Certificates of Obligation,
Series 2018”;delegating the authority to certain City Officials to execute certain documents relating to
the sale of the certificates;approving and authorizing instruments and procedures relating to the
certificates; and enacting other provisions relating to the subject.
Relationship to Strategic Goals:Financially Sustainable City,and Providing Core Services and
Infrastructure.
Recommendation(s):Council adopt the attached ordinance authorizing the issuance of
Certificates of Obligation,Series 2018;delegating the authority to certain City Officials to execute certain
documents relating to the sale of the certificates;approving and authorizing instruments and procedures
relating to the certificates; and enacting other provisions relating to the subject.
Summary:The City Council is authorized to approve the issuance of Certificates of Obligation
(CO’s)after approving a resolution directing notice to be published of the intent to issue the CO’s.On
March 22,2018 Council approved a resolution directing staff to advertise the issuance of CO’s.On March
25th and April 1st this notice was published.
The City of College Station typically issues debt to fund various capital projects identified and approved as
a part of the annual budget.Certificates of Obligation are proposed to be issued for streets,parks,land
for a future fire station,city hall design,information technology,electric,and water and wastewater
system improvements; and debt issuance costs.
If this ordinance is adopted,the City Council will be delegating to the Mayor,the Interim City
Manager/City Manager and the Assistant City Manager the authority to effect the sale of the
College Station, TX Printed on 4/20/2018Page 1 of 2
powered by Legistar™
File #:18-0286,Version:1
certificates through April 26, 2019.
Budget &Financial Summary:Staff reviewed the impact of the Certificates on the City’s ability to
meet debt service requirements and the effect they may have on the ad valorem tax rate.This issue is
not anticipated to impact the debt service portion of the ad valorem tax rate.The impact on the utility
rates will be reviewed as part of the financial forecast and FY19 budget.
Attachments:
1.Ordinance
2.Preliminary Official Statement
3.Project List
College Station, TX Printed on 4/20/2018Page 2 of 2
powered by Legistar™
FY18 Draft Debt Issue
2018 Draft Debt Issue
Gen'l Gov't Certificates of Obligation
Streets Proposed
- Francis Drive Rehabilitation - Phase II ST1419
1,500,000 Cain/Deacon UP Railroad Crossing Switch ST1602
2,700,000 Rock Prairie Rd West - Wellborn Rd to City Limits ST1604
1,000,000 Capstone and Barron Realignment ST1605
1,000,000 NH Safety Imp - Holik, Park Pl, Anna & Glade ST1606
3,725,000 Royder Phase II - Backwater to FM 2154 ST1709
200,000 Sidewalk/NH Plan/Street Modification Projects ST1705/ST1804
500,000 Lincoln Avenue Rehabilitation ST1801
Streets Total 10,625,000$
Parks Projects
800,000 System-Wide Park Improvements PK1702
785,000 Central Park Pavillion/Restroom Rehab PK1802
675,000 Central Park Athletic Field Restroom Rehab PK1803
950,000 Central Park Parking Lot Rehabilitation PK1805
600,000 Bee Creek Concessions/Restrooms PK1804
1,400,000 Southeast Park HM1607
Parks Total 5,210,000$
General Government
700,000 Fire Station #7 GG1804
2,000,000 Design of New City Hall GG1801
350,000 Video Surveillance CO1802
General Gov't Total 3,050,000$
Governmental CO Subtotal 18,885,000$
4/18/2018 14:17
FY18 Draft Debt Issue
2018 Draft Debt Issue 4/18/2018 14:17
Utility Certificates of Obligation
Proposed
500,000 Woodson Village Rehabilitation WA1957431
920,000 Lakeway Water Line Extension WA1869604
1,200,000 RPR Elevated Storage Tank w/ PRV'S WA1800001
450,000 Eastgate Rehabilitation - Water WF1656023
500,000 30" Transmission Line Relocate - 2818/FM60 WA1965140
Water Projects 3,570,000$
2,500,000 Lick Creek Parallel Trunkline WW1877335
500,000 Northeast Sewer Trunkline Phase II WW1957471
500,000 Northeast Sewer Trunkline Phase III WW1700002
2,300,000 Medical District Trunkline Phase I WW1800001
1,700,000 Eastgate Rehabilitation - Wastewater WF1656024
500,000 Woodson Village Rehabilitation WW1957430
2,000,000 Carters Creek Electrical Improvements WF1677128
Wastewater Projects 10,000,000$
6,300,000 Graham Road Substation and Feeders
Electric Projects 6,300,000$
Utility CO Subtotal 19,870,000$
Estimated Debt Issuance Costs 500,000$
Total Debt Issue 39,255,000$
FY18 Draft Debt Issue
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
10 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
7 Yrs
4/18/2018 14:17
FY18 Draft Debt Issue
4/18/2018 14:17
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
20 Yrs
FY18 Draft Debt Issue
Streets Budgeted Proposed Issued to Date PTD Enc Balance
935,000 - Francis Drive Rehabilitation - Phase II ST1419 20 Yrs 3,100,000.00 268,530.39 2,674,309.36 157,160.25
3,400,000 1,500,000 Cain/Deacon UP Railroad Crossing Switch ST1602 20 Yrs 2,000,000.00 537,280.06 151,380.54 1,311,339.40
2,700,000 2,700,000 Rock Prairie Rd West - Wellborn Rd to City Limits ST1604 20 Yrs 3,200,000.00 742,523.15 167,316.53 2,290,160.32
4,835,000 1,000,000 Capstone and Barron Realignment ST1605 20 Yrs 800,000.00 549,218.30 144,909.54 105,872.16
1,000,000 1,000,000 NH Safety Imp - Holik, Park Pl, Anna & Glade ST1606 20 Yrs 1,090,000.00 227,765.27 117,661.26 744,573.47
1,177,500 3,725,000 Royder Phase II - Backwater to FM 2154 ST1709 20 Yrs - 283,983.06 344,300.00 (628,283.06)
500,000 - Design of SH 40 and FM 2154 Interchange ST1803 20 Yrs - - - -
200,000 200,000 Sidewalk/NH Plan/Street Modification Projects ST1705/ST1804 20 Yrs 200,000.00 580.60 28,621.50 170,797.90
250,000 500,000 Lincoln Avenue Rehabilitation ST1801 20 Yrs - 777.53 - (777.53)
380,000 - Holleman & FM 2154 Intersection Improvements ST1708 20 Yrs 500,000.00 108,082.58 5,871.92 386,045.50
- - Traffic Signal Projects ST1704 20 Yrs -
Streets Total 15,377,500$ 10,625,000$
Parks Projects
800,000 800,000 System-Wide Park Improvements PK1702 10 Yrs 800,000.00 641,935.64 67,929.00 90,135.36
785,000 785,000 Central Park Pavillion/Restroom Rehab PK1802 20 Yrs - 72.10 - (72.10)
675,000 675,000 Central Park Athletic Field Restroom Rehab PK1803 20 Yrs - 72.10 - (72.10)
1,400,000 950,000 Central Park Parking Lot Rehabilitation PK1805 20 Yrs - 111.86 - (111.86)
75,000 600,000 Bee Creek Concessions/Restrooms PK1804 20 Yrs - 72.10 72.10 (144.20)
1,000,000 1,400,000 Southeast Park HM1607 20 Yrs - 50,234.49 1,221,004.00 (1,271,238.49)
Parks Total 4,735,000$ 5,210,000$
General Government
- 700,000 Fire Station #7 GG1804 20 Yrs - 5,018 - (5,018.20)
150,000 - Facilities Maintenance Relocation/PWs Master Plan GG1802 20 Yrs - - - -
2,000,000 2,000,000 Design of New City Hall GG1801 20 Yrs - 57 - (56.62)
350,000 350,000 Video Surveillance CO1802 7 Yrs - 578 - (578.09)
215,000 - Wireless Replacement CO1801 7 Yrs - 1,594 1,630 (3,223.93)
200,000 - Fiber Optic Infrastructure CO1701 7 Yrs 275,000 9,013 - 265,987.39
210,000 - ERP System Replacement CO1204 7 Yrs 5,879,969 4,281,652 492,684 1,105,632.19
General Gov't Total 3,125,000$ 3,050,000$
Governmental CO Subtotal 23,237,500$ 18,885,000$
4/18/2018 14:17
FY18 Draft Debt Issue
4/18/2018 14:17
Utility Certificates of Obligation
Budgeted Proposed
1,200,000 - Wells 1, 2 & 3 MCC Replacement WA1800005 10 Yrs - 40 - (39.54)
1,250,000 500,000 Woodson Village Rehabilitation WA1957431 20 Yrs - 149,655 262,290 (411,944.90)
1,320,000 - SH 6 Water Line WA1957432 20 Yrs 3,050,000 217,553 248,600 2,583,846.73
920,000 920,000 Lakeway Water Line Extension WA1869604 20 Yrs 125,000 109,094 913,387 (897,480.95)
700,000 - Dowling Road Equipment Shed WA1957439 20 Yrs - - - -
1,400,000 1,200,000 RPR Elevated Storage Tank w/ PRV'S WA1800001 20 Yrs - 3,957 - (3,957.16)
450,000 450,000 Eastgate Rehabilitation - Water WF1656023 20 Yrs 1,645,000 709,350 1,377,003 (441,352.90)
500,000 500,000 30" Transmission Line Relocate - 2818/FM60 WA1965140 20 Yrs - 357,448 182,017 (539,464.66)
Water Projects 7,740,000$ 3,570,000$
5,000,000 2,500,000 Lick Creek Parallel Trunkline WW1877335 20 Yrs - 952,521 455,910 (1,408,430.92)
1,350,000 500,000 Northeast Sewer Trunkline Phase II WW1957471 20 Yrs - 52,171 - (52,170.73)
900,000 500,000 Northeast Sewer Trunkline Phase III WW1700002 20 Yrs - 39,358 - (39,357.74)
2,300,000 2,300,000 Medical District Trunkline Phase I WW1800001 20 Yrs - - 2,300,000 (2,300,000.00)
1,200,000 - Southwood Valley Trunkline Ph I WW1997793 20 Yrs - 157,734 87,138 (244,872.35)
1,700,000 1,700,000 Eastgate Rehabilitation - Wastewater WF1656024 20 Yrs 300,000 437,429 1,511,574 (1,649,002.77)
1,800,000 500,000 Woodson Village Rehabilitation WW1957430 20 Yrs - 149,940 262,290 (412,230.08)
2,500,000 2,000,000 Carters Creek Electrical Improvements WF1677128 20 Yrs - 286,412 2,068,219 (2,354,630.57)
800,000 - Carter Creek Equipment Shed WW1800004 20 Yrs - - - -
800,000 - Treatment Plant Land Buffers WW1872097/WW1868508 20 Yrs - 5,636 2,500 (8,135.96)
2,500,000 - CC Diversion Lift Station & Force Main WW1800002 20 Yrs - 776 - (776.10)
250,000 - CCWWTP Centrifuge Improvements WF1771887 10 Yrs 1,100,000 79,032 - 1,020,968.33
300,000 - Southside NH Safety Imp - WW WW1945843 20 Yrs - 25,412 19,683 (45,095.36)
Wastewater Projects 21,400,000$ 10,000,000$
- 6,300,000 Graham Road Substation and Feeders 20 Yrs -
Electric Projects -$ 6,300,000$
Utility CO Subtotal 29,140,000$ 19,870,000$
Estimated Debt Issuance Costs 500,000$
Total Debt Issue 52,377,500$ 39,255,000$
FY18 Draft Debt Issue
DRR
10/26/17; $5,000,000
11/20/2017
11/20/2017
11/20/2017
11/20/2017
11/20/2017
11/20/2017
11/20/2017
11/20/2017
11/20/2017
3/23/2017
FY18 Draft Debt Issue
6/8/17; $6,500,000
3/31/2016
10/12/2017
8/24/2017; $500,000
7/28/2016
10/26/2017; $2,500,000
10/12/2017
6/8/17; $6,500,000
10/26/2017; $2,500,000
1/12/2017
2017 Draft Debt Issue - Summary
General Obligation Bonds
Budgeted Proposed
Streets Total
Parks Total
General Gov't Total
GOB Total -$ -$
Certificates of Obligation
Budgeted Proposed
Streets
Electric Projects
Water Projects
Wastewater Projects
Certificates of Obligation Total -$ -$
Estimated Debt Issuance Costs
Total Debt Issue -$ -$
Refunding Information
Par
NPV Savings
Gross Savings
% Savings
Negative Arbitrage
3/2/2012 16:04
Refunds
03’s and 04’s
Refunds
03’s, 04’s and 05’s
2017 Debt Issue
Debt
Issued
thru FY16
Paid to
Date 6 mths 12 mths 18 mths 24 mths 36 mths Total
2008 General Obligation Bonds
Streets
- - -
- - -
Streets Total -$ - - - - - -
Parks
-
Parks Total -$ - - - - - -
2008 GOB Total -$ -$ -$ -$ -$ -$ -$
#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
#DIV/0!#DIV/0!
Gen'l Gov't Certificates of Obligation
Streets
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
Streets Total -$ - - - - - -$
Parks Projects
- - - - -
- - - - -
- - - - -
- - - - -
Parks Total -$ - - - - - -$
General Government
-
-
-
-
-
-
General Gov't Total -$ - - - - - -$
Governmental CO Subtotal -$ - - - - - -$
#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
Utility Certificates of Obligation 6 mths 12 mths 18 mths 24 mths 36 mths Total
-
-
-
-
-
-
-
Water Projects -$ - - - - - -$
-
Wastewater Projects -$ - - - - - -$
Utility CO Subtotal -$ - - - - - -$
Estimated Debt Issuance Costs -
Certificates of Obligation Total -$ - - - - - -$
#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
#DIV/0!#DIV/0!#DIV/0!
Total Debt Issue -$ - - - - - -$
#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
4/18/2018 14:17
ORDINANCE NO. 2018-_____
AUTHORIZING THE ISSUANCE OF "CITY OF COLLEGE STATION,
TEXAS CERTIFICATES OF OBLIGATION, SERIES 2018"; DELEGATING
THE AUTHORITY TO CERTAIN CITY OFFICIALS TO EXECUTE
CERTAIN DOCUMENTS RELATING TO THE SALE OF THE
CERTIFICATES; APPROVING AND AUTHORIZING INSTRUMENTS AND
PROCEDURES RELATING TO SAID CERTIFICATES; AND ENACTING
OTHER PROVISIONS RELATING TO THE SUBJECT
WHEREAS, on March 22, 2018, the City Council of the City of College Station (the
"City") passed a resolution authorizing and directing notice of its intention to issue the
Certificates of Obligation herein authorized, to be published in a newspaper as required by
Section 271.049 of the Texas Local Government Code;
WHEREAS, said notice was published in the Bryan-College Station Eagle, a
"newspaper" of the type described in Section 2051.044, Texas Government Code, as required by
said Section 271.049 of the Texas Local Government Code, on March 25, 2018 and April 1,
2018;
WHEREAS, said notice provided that the ordinance authorizing the Certificates of
Obligation may authorize an authorized officer of the City to effect the sale and delivery of the
Certificates of Obligation on a date or dates subsequent to the adoption of the ordinance;
WHEREAS, no petition, signed by at least 5% of the qualified electors of said City as
permitted by said Section 271.049 of the Texas Local Government Code protesting the issuance
of such Certificates of Obligation, has been filed;
WHEREAS, the City is an "Issuer" within the meaning of Section 1371.001(4)(P), Texas
Government Code, having (i) a principal amount of at least $100 million in outstanding long-
term indebtedness, in long-term indebtedness proposed to be issued, or a combination of
outstanding or proposed long-term indebtedness and (ii) some amount of long-term indebtedness
outstanding or proposed to be issued that is rated in one of the four highest rating categories for
long-term debt instruments by a nationally recognized rating agency for municipal securities,
without regard to the effect of any credit agreement or other form of credit enhancement entered
into in connection with the obligation;
WHEREAS, the Certificates of Obligation hereinafter authorized are to be issued and
delivered pursuant to Subchapter C of Chapter 271 of the Texas Local Government Code and
Chapter 1371, Texas Government Code and the City's Home Rule Charter;
WHEREAS, during the preceding three years, the City has not submitted a bond
proposition to authorize the issuance of bonds for the same purpose for which the Certificates of
Obligation are hereby being issued and which proposition was disapproved by voters; and
WHEREAS, it is officially found, determined, and declared that the meeting at which this
Ordinance has been adopted was open to the public and public notice of the time, place and
subject matter of the public business to be considered and acted upon at said meeting, including
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this Ordinance, was given, all as required by the applicable provisions of Texas Government
Code, Chapter 551;
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
COLLEGE STATION, TEXAS:
Section 1. DEFINITIONS; AUTHORIZATION OF CERTIFICATES OF
OBLIGATION.
(a) Definitions. Terms not otherwise defined herein shall have the following
meanings.
(i) The term "Authorized Denomination" shall mean a denomination of
$5,000 of principal amount of a Certificate or any integral multiple thereof.
(ii) The term "Business Day" means any day other than a Saturday, Sunday, a
legal holiday, or a day on which banking institutions in the City are, authorized by law or
executive order to close.
(iii) The term "Certificates" and "Certificates of Obligation" shall mean the
City of College Station, Texas Certificates of Obligation, Series 2018, authorized to be
issued and delivered by this Ordinance.
(iv) The term "MSRB" means the Municipal Securities Rulemaking Board.
(v) The term "Pricing Certificate" means a certificate of the Pricing Officer
setting forth the terms of sale of the Certificates including the method of sale, principal
amount, maturity dates, interest payment dates, dated date, interest rates, yields,
redemption provisions, and other matters related to the sale of the Certificates.
(vi) The term "Pricing Officer" means the Mayor, the Interim City Manager
(or the City Manager if one has been appointed) and the Assistant City Manager (Jeff
Kersten) of the City (each the "Pricing Officer") each of whom is independently
authorized to finalize the terms of sale of the Certificates by execution of the Pricing
Certificate.
(vii) The term "Purchaser" means (i) if the Certificates are sold by negotiated
sale, the underwriter or underwriting syndicate selected by the Pricing Officer, or (ii) if
the Certificates are sold by competitive sale by soliciting public bids, the underwriter or
underwriting syndicate awarded the Certificates by the Pricing Officer.
(viii) The term "Rule" means SEC Rule 15c2-12 (17 C.F.R. § 240.15C2-12), as
amended from time to time.
(ix) The term "SEC" means the United States Securities and Exchange
Commission.
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(x) The term "Surplus Revenues" shall mean those revenues from the
operation of the City's combined municipal electric light and power, waterworks and
sewer system remaining after payment of all operation and maintenance expenses thereof
and other obligations heretofore or hereafter incurred to which such revenues have been
or shall be encumbered by a lien on and pledge of such revenues superior to the lien on
and pledge of such revenues to the Certificates.
(b) The City's Certificates of Obligation, to be designated the "City of College
Station, Texas Certificates of Obligation, Series 2018", are hereby authorized to be issued and
delivered in the principal amount not to exceed $55,000,000 for the following public purposes:
(i) constructing and improving streets and roads including related drainage, landscaping, lighting,
pedestrian improvements and signage related thereto; (ii) designing, constructing, equipping and
installing park and recreation equipment and improvements including new and existing facilities,
park infrastructure improvements, upgrades and rehabilitation; (iii) purchasing and installing
technology improvements including video surveillance; (iv) purchasing land for a new Fire
Station; (v) designing and constructing a new City Hall; (vi) constructing improvements and
extensions to the City's combined waterworks, sewer and electric systems including distribution,
transmission, system lines, wells, plant improvements, and acquisition of interests in land; and
(vii) the payment of fiscal, engineering and legal fees incurred in connection therewith and
payment of the costs of issuance of the Certificates.
Section 2. DELEGATION TO PRICING OFFICER.
(a) As authorized by Section 1371.053, Texas Government Code, each Pricing
Officer is hereby authorized to act individually and severally on behalf of the City in selling and
delivering the Certificates, carrying out the other procedures specified in this Ordinance,
including, determining the date of the Certificates, any additional or different designation or title
by which the Certificates shall be known, whether the Certificate shall be sold and delivered in
one or more series and the date and sale and delivery of each such series, the price at which the
Certificates will be sold, the years in which the Certificates will mature, the principal amount to
mature in each of such years, the rate of interest to be borne by each such maturity, the interest
payment and record dates, the price and terms upon and at which the Certificates shall be subject
to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund
redemption provisions, and all other matters relating to the issuance, sale, and delivery of the
Certificates and obtaining municipal insurance for all or any portion of the Certificates and
providing for the terms and provisions thereof applicable to the Certificates, all of which shall be
specified in the Pricing Certificate; provided that:
(i) the aggregate principal amount of the Certificates shall not exceed
$55,000,000;
(ii) the true interest cost of the Certificates shall not exceed 5.000% per
annum;
(iii) the final maturity of the Certificates shall not exceed February 15, 2038;
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(iv) the delegation made hereby shall expire if not exercised by the Pricing
Officer on or prior to April 26, 2019; and
(v) on or prior to delivery, the Certificates shall be rated by a nationally
recognized rating agency for municipal securities in one of the four highest categories for
long-term obligations.
(b) In establishing the aggregate principal amount of the Certificates, the Pricing
Officer shall establish an amount that, when combined with premium used for purposes other
than the payment of costs of issuance, does not exceed the amount authorized in Subsection (a)
hereof, which shall be sufficient in amount to provide for the purposes for which the Certificates
are authorized and to pay costs of issuing the Certificates. The Certificates shall be sold with and
subject to such terms as set forth in the Pricing Certificate.
(c) The Certificates may be sold by public offering (either through a negotiated or
competitive offering) and the Pricing Certificate shall so state, and the Pricing Certificate may
conform this Ordinance to such method of sale, including the provisions hereof that pertain to the
undertaking of the Issuer in accordance with the Rule.
(d) The City Council hereby determines that the delegation of the authority to the
Pricing Officer to approve the final terms of the Certificates as set forth in this Ordinance is, and
the decisions made by the Pricing Officer pursuant to such delegated authority and incorporated
into the Pricing Certificate are required to be, in the Issuer's best interests, and the Pricing
Officer is hereby authorized to make and include in the Pricing Certificate a finding to that
effect.
Section 3. CHARACTERISTICS OF THE CERTIFICATES. (a) The City shall keep or
cause to be kept at the corporate trust office in Dallas, Texas (the "Designated Trust Office") of
The Bank of New York Mellon Trust Company, N.A., or such other bank, trust company,
financial institution, or other agency named by the Pricing Officer or in accordance with the
provisions of (g) below (the "Paying Agent/Registrar"), books or records for the registration and
transfer of the Certificates (the "Registration Books"), and the City hereby appoints the Paying
Agent/Registrar as its registrar and transfer agent to keep such books or records and make such
transfers and registrations under such reasonable regulations as the City and the Paying
Agent/Registrar may prescribe; and the Paying Agent/Registrar shall make such transfers and
registrations as herein provided. It shall be the duty of the Paying Agent/Registrar to obtain from
the registered owner and record in the Registration Books the address of the registered owner of
each Certificate to which payments with respect to the Certificates shall be mailed, as herein
provided. The City or its designee shall have the right to inspect the Registration Books during
regular business hours of the Paying Agent/Registrar at its Designated Trust Office, but
otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless
otherwise required by law, shall not permit their inspection by any other entity. Registration of
each Certificate may be transferred in the Registration Books only upon presentation and
surrender thereof to the Paying Agent/Registrar at its Designated Trust Office for transfer of
registration and cancellation, together with proper written instruments of assignment, in form and
with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing the
assignment of such Certificate, or any portion thereof in any Authorized Denomination, to the
5
assignee or assignees thereof, and the right of such assignee or assignees to have such Certificate
or any such portion thereof registered in the name of such assignee or assignees. Upon the
assignment and transfer of any Certificate or any portion thereof, a new substitute certificate or
certificates shall be issued in exchange therefor in the manner herein provided.
(b) The entity in whose name any Certificate shall be registered in the Registration
Books at any time shall be treated as the absolute owner thereof for all purposes of this
Ordinance, whether or not such Certificate shall be overdue, and the City and the Paying
Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on
account of, the principal of, premium, if any, and interest on any such certificate shall be made
only to such registered owner. All such payments shall be valid and effectual to satisfy and
discharge the liability upon such certificate to the extent of the sum or sums so paid.
(c) The City hereby further appoints the Paying Agent/Registrar to act as the paying
agent for paying the principal of and interest on the Certificates, and to act as its agent to
exchange or replace Certificates, all as provided in this Ordinance. The Paying Agent/Registrar
shall keep proper records of all payments made by the City and the Paying Agent/Registrar with
respect to the Certificates, and of all exchanges thereof, and all replacements thereof, as provided
in this Ordinance.
(d) Each Certificate may be exchanged for fully registered certificates in the manner
set forth herein. Each Certificate issued and delivered pursuant to this Ordinance may, upon
surrender thereof at the Designated Trust Office of the Paying Agent/Registrar, together with a
written request therefor duly executed by the registered owner or the assignee or assignees
thereof, or its or their duly authorized attorneys or representatives, with guarantee of signatures
satisfactory to the Paying Agent/Registrar, at the option of the registered owner or such assignee
or assignees, as appropriate, be exchanged for fully registered Certificates, without interest
coupons, in the form prescribed in the FORM OF CERTIFICATE, in an Authorized
Denomination (subject to the requirement hereinafter stated that each substitute Certificate shall
have a single stated maturity date), as requested in writing by such registered owner or such
assignee or assignees, in an aggregate principal amount equal to the principal amount of any
Certificate or Certificates so surrendered, and payable to the appropriate registered owner,
assignee, or assignees, as the case may be. If any Certificate or portion thereof is assigned and
transferred, each Certificate issued in exchange therefor shall have the same principal maturity
date and bear interest at the same rate as the Certificate for which it is being exchanged. Each
substitute Certificate shall bear a letter and/or number to distinguish it from each other
Certificate. The Paying Agent/Registrar shall exchange or replace Certificates as provided
herein, and each fully registered Certificate or Certificates delivered in exchange for or
replacement of any Certificate or portion thereof as permitted or required by any provision of
this Ordinance shall constitute one of the Certificates for all purposes of this Ordinance, and may
again be exchanged or replaced. It is specifically provided, however, that any Certificate
delivered in exchange for or replacement of another Certificate prior to the first scheduled
interest payment date on the Certificates (as stated on the face thereof) shall be dated the same
date as such Certificate, but each substitute Certificate so delivered on or after such first
scheduled interest payment date shall be dated as of the interest payment date preceding the date
on which such substitute Certificate is delivered, unless such substitute Certificate is delivered on
an interest payment date, in which case it shall be dated as of such date of delivery; provided,
6
however, that if at the time of delivery of any substitute Certificate the interest on the Certificate
for which it is being exchanged has not been paid, then such substitute Certificate shall be dated
as of the date to which such interest has been paid in full. On each substitute Certificate issued
in exchange for or replacement of any Certificate or Certificates issued under this Ordinance
there shall be printed thereon a Paying Agent/Registrar's Authentication Certificate, in the form
hereinafter set forth in the FORM OF CERTIFICATE (the "Authentication Certificate"). An
authorized representative of the Paying Agent/Registrar shall, before the delivery of any such
substitute Certificate, date such substitute Certificate in the manner set forth above, and manually
sign and date the Authentication Certificate, and no such substitute Certificate shall be deemed to
be issued or outstanding unless the Authentication Certificate is so executed. The Paying
Agent/Registrar promptly shall cancel all Certificates surrendered for exchange or replacement.
No additional ordinances, orders, or resolutions need be passed or adopted by the City Council or
any other body or person so as to accomplish the foregoing exchange or replacement of any
Certificates or portion thereof, and the Paying Agent/Registrar shall provide for the printing,
execution, and delivery of the substitute Certificate in the manner prescribed herein. Pursuant to
Chapter 1206, Texas Government Code, the duty of exchange or replacement of any Certificates
as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of
Authentication Certificate, the exchanged or replaced Certificate shall be valid, incontestable,
and enforceable in the same manner and with the same effect as the Certificates which originally
were delivered pursuant to this Ordinance, approved by the Attorney General, and registered by
the Comptroller of Public Accounts. Neither the City nor the Paying Agent/Registrar shall be
required to transfer or exchange any Certificate so selected for redemption, in whole or in part,
within 45 calendar days of the date fixed for redemption; provided, however, such limitation of
transfer shall not be applicable to an exchange by the registered owner of the uncalled principal
of a Certificate.
(e) All Certificates issued in exchange or replacement of any other Certificate or
portion thereof, (i) shall be issued in fully registered form, without interest coupons, with the
principal of and interest on such Certificates to be payable only to the registered owners thereof,
(ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned,
(iv) may be exchanged for other Certificates, (v) shall have the characteristics, (vi) shall be
signed and sealed, and (vii) the principal of and interest on the Certificates shall be payable, all
as provided, and in the manner required or indicated, in the FORM OF CERTIFICATE.
(f) The City shall pay the Paying Agent/Registrar's reasonable and customary fees
and charges for making transfers of Certificates, but the registered owner of any Certificate
requesting such transfer shall pay any taxes or other governmental charges required to be paid
with respect thereto. The registered owner of any Certificates requesting any exchange shall pay
the Paying Agent/Registrar's reasonable and standard or customary fees and charges for
exchanging any such certificate or portion thereof, together with any taxes or governmental
charges required to be paid with respect thereto, all as a condition precedent to the exercise of
such privilege of exchange, except, however, that in the case of the exchange of an assigned and
transferred Certificate or Certificates or any portion or portions thereof in an Authorized
Denomination, as provided in this Ordinance, such fees and charges will be paid by the City. In
addition, the City hereby covenants with the registered owners of the Certificates that it will (i)
pay the reasonable and standard or customary fees and charges of the Paying Agent/Registrar for
its services with respect to the payment of the principal of and interest on Certificates, when due,
7
and (ii) pay the fees and charges of the Paying Agent/Registrar for services with respect to the
transfer or registration of Certificates solely to the extent above provided, and with respect to the
exchange of Certificates solely to the extent above provided.
(g) The City covenants with the registered owners of the Certificates that at all times
while the Certificates are outstanding the City will provide a competent and legally qualified
bank, trust company, financial institution, or other agency to act as and perform the services of
Paying Agent/Registrar for the Certificates under this Ordinance, and that the Paying
Agent/Registrar will be one entity. The City reserves the right to, and may, at its option, change
the Paying Agent/Registrar upon not less than sixty days written notice to the Paying
Agent/Registrar. In the event that the entity at any time acting as Paying Agent/Registrar (or its
successor by merger, acquisition, or other method) should resign or otherwise cease to act as
such, the City covenants that it will promptly appoint a competent and legally qualified national
or state banking institution which shall be a corporation organized and doing business under the
laws of the United States of America or of any state, authorized under such laws to exercise trust
powers, subject to supervision or examination by federal or state authority, and whose
qualifications substantially are similar to the previous Paying Agent/Registrar to act as Paying
Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the
previous Paying Agent/Registrar promptly shall transfer and deliver the Registration Books (or a
copy thereof), along with all other pertinent books and records relating to the Certificates, to the
new Paying Agent/Registrar designated and appointed by the City. Upon any change in the
Paying Agent/Registrar, the City promptly will cause a written notice thereof to be sent by the
new Paying Agent/Registrar to each registered owner of the Certificates, by United States mail,
first-class postage prepaid, which notice also shall give the address of the new Paying
Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Registrar
shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this
Ordinance shall be delivered to each Paying Agent/Registrar.
Section 4. FORM OF CERTIFICATES. The form of the Certificates, including the form
of the Authentication Certificate, the form of Assignment and the form of Registration
Certificate of the Comptroller of Public Accounts of the State of Texas to be attached to the
Certificates initially issued and delivered pursuant to this Ordinance, shall be in substantially the
form as set forth in Exhibit A to this Ordinance, shall be numbered consecutively from R-1
upward, with the Initial Certificate being numbered T-1, with such appropriate variations,
omissions, or insertions as are permitted or required by this Ordinance and with the FORM OF
CERTIFICATE to be modified pursuant to, and completed with information set forth in the
Pricing Certificate. The FORM OF CERTIFICATE as it appears in Exhibit A shall be
completed, amended and modified by Bond Counsel to incorporate the information set forth in
the Pricing Certificate but it is not required for the FORM OF CERTIFICATE to reproduced as
an exhibit to the Pricing Certificate. The printer of the Certificates is hereby authorized to print
on the Certificates (i) the form of bond counsel's opinion relating to the Certificates, and (ii) an
appropriate statement of insurance furnished by a municipal bond insurance company providing
municipal bond insurance, if any, covering all or any part of the Certificates.
Section 5. RESERVED.
Section 6. LEVY OF TAX; INTEREST AND SINKING FUND; REVENUE PLEDGE.
8
(a) That a special fund or account, to be designated the "City of College Station,
Texas Series 2018 Certificate of Obligation Interest and Sinking Fund" (the "Interest and Sinking
Fund") is hereby created and shall be established and maintained by the City. The Interest and
Sinking Fund shall be kept separate and apart from all other funds and accounts of the City, and
shall be used only for paying the interest on and principal of the Certificates. All ad valorem
taxes levied and collected for and on account of the Certificates shall be deposited, as collected,
to the credit of the Interest and Sinking Fund. During each year while any of the Certificates are
outstanding and unpaid, the governing body of the City shall compute and ascertain the rate and
amount of ad valorem tax, based on the latest approved tax rolls of the City, with full allowances
being made for tax delinquencies and the cost of tax collections, which will be sufficient to raise
and produce the money required to pay the interest on the Certificates as such interest comes
due, and to provide a sinking fund to pay the principal (including mandatory sinking fund
redemption payments, if any) of the Certificates as such principal matures or comes due through
operation of the mandatory sinking fund redemption, if any, but never less than 2% of the
original amount of the Certificates as a sinking fund each year. The rate and amount of ad
valorem tax is hereby ordered to be levied against all taxable property in the City for each year
while any of the Certificates is outstanding and unpaid, and the ad valorem tax shall be assessed
and collected each such year and deposited to the credit of the Interest and Sinking Fund. Ad
valorem taxes necessary to pay the interest on and principal of the Certificates, as such interest
comes due and such principal matures, are hereby pledged for such payment, within the limit
prescribed by law.
(b) That the Certificates are additionally secured by and shall be payable from the
Surplus Revenues. The Surplus Revenues are pledged by the City pursuant to authority of
Chapter 1502, Texas Government Code, specifically Section 1502.058 thereof. The City shall
promptly deposit the Surplus Revenues upon their receipt to the credit of the Interest and Sinking
Fund created pursuant to Section 6, to pay the principal and interest on the Certificates. The
amount of Surplus Revenues pledged to the payment of the Certificates shall not exceed $1,000.
If Surplus Revenues or any other lawfully available revenues, income or resources of the City are
deposited or budgeted to be deposited in the Interest and Sinking Fund in advance of the time
when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes that
otherwise would have been required to be levied pursuant to Section 6 may be reduced to the
extent and by the amount of the Surplus Revenues or other lawfully available revenues, income
or resources then on deposit or budgeted to be deposited to the credit of the Interest and Sinking
Fund.
Section 7. TRANSFER. That the City shall do any and all things necessary to
accomplish the transfer of monies to the Interest and Sinking Fund of this issue in ample time to
pay such items of principal and interest due on the Certificates.
Section 8. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this
Ordinance shall be secured in the manner and to the fullest extent permitted or required by law
for the security of public funds, and such Interest and Sinking Fund shall be used only for the
purposes and in the manner permitted or required by this Ordinance.
Section 9. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED
CERTIFICATES. (a) Replacement Certificates. That in the event any outstanding Certificate is
9
damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be
printed, executed, and delivered, a new Certificate of the same principal amount, maturity, and
interest rate, as the damaged, mutilated, lost, stolen, or destroyed Certificate, in replacement for
such Certificate in the manner hereinafter provided.
(b) Application for Replacement Certificates. That application for replacement of
damaged, mutilated, lost, stolen, or destroyed Certificates shall be made by the registered owner
thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Certificate,
the registered owner applying for a replacement Certificate shall furnish to the City and to the
Paying Agent/Registrar such security or indemnity as may be required by them to save each of
them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or
destruction of a Certificate, the registered owner shall furnish to the City and to the Paying
Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Certificate,
as the case may be. In every case of damage or mutilation of a Certificate, the registered owner
shall surrender to the Paying Agent/Registrar for cancellation the Certificate so damaged or
mutilated.
(c) No Default Occurred. That notwithstanding the foregoing provisions of this
Section, in the event any such Certificate shall have matured, and no default has occurred which
is then continuing in the payment of the principal of, redemption premium, if any, or interest on
the Certificate, the City may authorize the payment of the same (without surrender thereof except
in the case of a damaged or mutilated Certificate) instead of issuing a replacement certificate,
provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Replacement Certificates. That prior to the issuance of any
replacement Certificate, the Paying Agent/Registrar shall charge the registered owner of such
Certificate with all legal, printing, and other expenses in connection therewith. Every
replacement Certificate issued pursuant to the provisions of this Section by virtue of the fact that
any Certificate is lost, stolen, or destroyed shall constitute a contractual obligation of the City
whether or not the lost, stolen, or destroyed Certificate shall be found at any time, or be
enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and
proportionately with any and all other Certificates duly issued under this Ordinance.
(e) Authority for Issuing Replacement Certificates. That in accordance with Section
1201.067, Texas Government Code, this Section of this Ordinance shall constitute authority for
the issuance of any such replacement Certificate without necessity of further action by the City
or any other body or person, and the duty of the replacement of such Certificates is hereby
authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall
authenticate and deliver such Certificates in the form and manner and with the effect, as provided
in Section 5(d) of this Ordinance for Certificates issued in conversion and exchange of other
Certificates.
Section 10. FEDERAL INCOME TAX MATTERS. That the City covenants to refrain
from any action which would adversely affect, or to take such action as to ensure, the treatment
of the Certificates as obligations described in section 103 of the Code, the interest on which is
not includable in the "gross income" of the holder for purposes of federal income taxation. In
furtherance thereof, the City covenants as follows:
10
(a) to take any action to assure that no more than 10 percent of the proceeds of the
Certificates (less amounts deposited to a reserve fund, if any) are used for any "private business
use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds are
so used, that amounts, whether or not received by the City, with respect to such private business
use, do not, under the terms of this Ordinance or any underlying arrangement, directly or
indirectly, secure or provide for the payment of more than 10 percent of the debt service on the
Certificates, in contravention of section 141(b)(2) of the Code;
(b) to take any action to assure that in the event that the "private business use"
described in subsection (a) hereof exceeds five percent of the proceeds of the Certificates (less
amounts deposited into a reserve fund, if any) then the amount in excess of five percent is used
for a "private business use" which is "related" and not "disproportionate", within the meaning of
section 141(b)(3) of the Code, to the governmental use;
(c) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or five percent of the proceeds of the Certificates (less amounts deposited into a
reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or
local governmental units, in contravention of section 141(c) of the Code;
(d) to refrain from taking any action which would otherwise result in the Certificates
being treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(e) to refrain from taking any action that would result in the Certificates being
"federally guaranteed" within the meaning of section 149(b) of the Code;
(f) to refrain from using any portion of the proceeds of the Certificates, directly or
indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire
investment property (as defined in section 148(b)(2) of the Code) which produces a materially
higher yield over the term of the Certificates, other than investment property acquired with –
(1) proceeds of the Certificates invested for a reasonable temporary period of
three years or less until such proceeds are needed for the purpose for which the
Certificates are issued,
(2) amounts invested in a bona fide debt service fund, within the meaning of
section 1.148-1(b) of the Treasury Regulations, and
(3) amounts deposited in any reasonably required reserve or replacement fund
to the extent such amounts do not exceed 10 percent of the proceeds of the Certificates;
(g) to otherwise restrict the use of the proceeds of the Certificates or amounts treated
as proceeds of the Certificates, as may be necessary, so that the Certificates do not otherwise
contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent
applicable, section 149(d) of the Code; and
(h) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Certificates) an amount that is at least equal to 90
percent of the "Excess Earnings," within the meaning of section 148(f) of the Code and to pay to
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the United States of America, not later than 60 days after the Certificates have been paid in full,
100 percent of the amount then required to be paid as a result of Excess Earnings under section
148(f) of the Code.
For purposes of the foregoing (a) and (b), the City understands that the term "proceeds"
includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of
refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended
prior to the date of issuance of the Certificates. It is the understanding of the City that the
covenants contained herein are intended to assure compliance with the Code and any regulations
or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event
that regulations or rulings are hereafter promulgated which modify or expand provisions of the
Code, as applicable to the Certificates, the City will not be required to comply with any covenant
contained herein to the extent that such failure to comply, in the opinion of nationally-recognized
bond counsel, will not adversely affect the exemption from federal income taxation of interest on
the Certificates under section 103 of the Code. In the event that regulations or rulings are
hereafter promulgated which impose additional requirements which are applicable to the
Certificates, the City agrees to comply with the additional requirements to the extent necessary,
in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal
income taxation of interest on the Certificates under section 103 of the Code. In furtherance of
such intention, the City hereby authorizes and directs the Mayor, the Interim City Manager (or
the City Manager if one has been appointed), any Assistant City Manager, severally, to execute
any documents, certificates or reports required by the Code, and to make such elections on behalf
of the City which may be permitted by the Code as are consistent with the purpose for the
issuance of the Certificates.
In order to facilitate compliance with clause (h) above, a "Rebate Fund" is hereby
established by the City for the sole benefit of the United States of America, and such Fund shall
not be subject to the claim of any other person, including without limitation the bondholders.
The Rebate Fund is established for the additional purpose of compliance with section 148 of the
Code.
Section 11. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE
PROJECT. That the City covenants to account for the expenditure of proceeds from the sale of
the Certificates and any investment earnings thereon to be used for the purposes described in
Section 1 of this Ordinance (such purpose referred to in this Section and Section 12 hereof as a
"Project") on its books and records by allocating proceeds to expenditures within 18 months of
the later of the date that (a) the expenditure on a Project is made or (b) such Project is completed.
The foregoing notwithstanding, the City shall not expend such proceeds or investment earnings
more than 60 days after the earlier of (a) the fifth anniversary of the date of delivery of the
Certificates or (b) the date the Certificates are retired, unless the City obtains an opinion of
nationally-recognized bond counsel substantially to the effect that such expenditure will not
adversely affect the tax-exempt status of the Certificates. For purposes hereof, the City shall not
be obligated to comply with this covenant if it obtains an opinion that such failure to comply will
not adversely affect the excludability for federal income tax purposes from gross income of the
interest.
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Section 12. DISPOSITION OF PROJECT. That the City covenants that the property
constituting a Project will not be sold or otherwise disposed in a transaction resulting in the
receipt by the City of cash or other compensation, unless any action taken in connection with
such disposition will not adversely affect the tax-exempt status of the Certificates. For purpose
of the foregoing, the City may rely on an opinion of nationally-recognized bond counsel that the
action taken in connection with such sale or other disposition will not adversely affect the tax-
exempt status of the Certificates. For purposes of the foregoing, the portion of the property
comprising personal property and disposed in the ordinary course shall not be treated as a
transaction resulting in the receipt of cash or other compensation. For purposes hereof, the City
shall not be obligated to comply with this covenant if it obtains an opinion that such failure to
comply will not adversely affect the excludability for federal income tax purposes from gross
income of the interest.
Section 13. PROCEDURES TO MONITOR COMPLIANCE WITH TAX
COVENANTS. The City hereby adopts the procedures attached hereto as Exhibit B as a means
of monitoring compliance with the federal tax covenants made by the City herein.
Section 14. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES.
That the Assistant City Manager of the City is hereby authorized to have control of the
Certificates initially issued and delivered hereunder and all necessary records and proceedings
pertaining to the Certificates pending their delivery and their investigation, examination, and
approval by the Attorney General of the State of Texas, and their registration by the Comptroller
of Public Accounts of the State of Texas. Upon registration of the Certificates said Comptroller
of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually
sign the Comptroller's Registration Certificate attached to such Certificates, and the seal of said
Comptroller shall be impressed, or placed in facsimile, on such certificate. The Certificates thus
registered shall remain in the custody of the Assistant City Manager (or the designee thereof)
until delivered to the Purchaser (as defined in Section 18 of this Ordinance).
Section 15. DTC REGISTRATION. That the Certificates initially shall be issued and
delivered in such manner that no physical distribution of the Certificates will be made to the
public, and The Depository Trust Company ("DTC"), New York, New York, initially will act as
depository for the Certificates. DTC has represented that it is a limited purpose trust company
incorporated under the laws of the State of New York, a member of the Federal Reserve System,
a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered under Section 17A of the Securities Exchange Act of 1934, as
amended, and the City accepts, but in no way verifies, such representations. The Certificates
initially authorized by this Ordinance shall be delivered to and registered in the name of CEDE
& CO., the nominee of DTC. It is expected that DTC will hold the Certificates on behalf of the
Purchaser and its participants. So long as each Certificate is registered in the name of CEDE &
CO., the Paying Agent/Registrar shall treat and deal with DTC the same in all respects as if it
were the actual and beneficial owner thereof. It is expected that DTC will maintain a book-entry
system which will identify ownership of the Certificates in Authorized Denominations, with
transfers of ownership being effected on the records of DTC and its participants pursuant to rules
and regulations established by them, and that the Certificates initially deposited with DTC shall
be immobilized and not be further exchanged for substitute Certificates except as hereinafter
provided. The City is not responsible or liable for any functions of DTC, will not be responsible
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for paying any fees or charges with respect to its services, will not be responsible or liable for
maintaining, supervising, or reviewing the records of DTC or its participants, or protecting any
interests or rights of the beneficial owners of the Certificates. It shall be the duty of the DTC
Participants, as defined in the Official Statement herein approved, to make all arrangements with
DTC to establish this book-entry system, the beneficial ownership of the Certificates, and the
method of paying the fees and charges of DTC. The City does not represent, nor does it in any
way covenant that the initial book-entry system established with DTC will be maintained in the
future. Notwithstanding the initial establishment of the foregoing book-entry system with DTC,
if for any reason any of the originally delivered Certificates is duly filed with the Paying
Agent/Registrar with proper request for transfer and substitution, as provided for in this
Ordinance, substitute Certificates will be duly delivered as provided in this Ordinance, and there
will be no assurance or representation that any book-entry system will be maintained for such
Certificates. In connection with the initial establishment of the foregoing book-entry system
with DTC, the City heretofore has executed a "Blanket Letter of Representations" prepared by
DTC in order to implement the book-entry system described above.
Section 16. CONTINUING DISCLOSURE OBLIGATION PURSUANT TO RULE
15C2-12 (17 C.F.R. § 240.15C2-12).
(a) Annual Reports.
(i) The City will provide certain updated financial information and operating
data to the MSRB on an annual basis in an electronic format that is prescribed by the
MSRB and available via the Electronic Municipal Market Access System ("EMMA") at
www.emma.msrb.org. The information to be updated includes all quantitative financial
information and operating data with respect to the City of the general type included in the
Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B.
The City will update and provide the information in Tables 1 through 6 and 8 through 20
within six months after the end of each fiscal year ending in and after 2018. The City will
additionally provide audited financial statements when and if available, and in any event,
within 12 months after the end of each fiscal year ending in or after 2018. If the audit of
such financial statements is not complete within 12 months after any such fiscal year end,
then the City will file unaudited financial statements within such 12 month period and
audited financial statements for the applicable fiscal year, when and if the audit report on
such statements becomes available. Any such financial statements will be prepared in
accordance with the accounting principles described in Appendix B of the Official
Statement or such other accounting principles as the City may be required to employ
from time to time pursuant to State law or regulation.
(ii) The financial information and operating data to be provided may be set
forth in full in one or more documents or may be included by specific reference to any
document available to the public on the MSRB’s Internet Web site or filed with the SEC,
as permitted by the Rule. If the City changes its fiscal year, it will notify the MSRB of
the change (and of the date of the new fiscal year end) prior to the next date by which the
City otherwise would be required to provide financial information and operating data
pursuant to this Section. The financial information and operating data to be provided
pursuant to this Section may be set forth in full in one or more documents or may be
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included by specific reference to any document that is available to the public on the
MSRB's internet website or filed with the SEC. All documents provided to the MSRB
pursuant to this Section shall be accompanied by identifying information as prescribed by
the MSRB.
(b) Event Notices. The City shall notify the MSRB in an electronic format as
prescribed by the MSRB, in a timely manner (but not in excess of ten Business Days after the
occurrence of the event) of any of the following events with respect to the Certificates:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial
difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701–TEB) or other material notices or determinations with
respect to the tax status of the Certificates, or other material events
affecting the tax status of the Certificates;
7. Modifications to rights of Certificateholders, if material;
8. Certificate calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the
Certificates, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of an obligated
person (which is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent, or similar officer for the City in a
proceeding under the United States Bankruptcy Code or in any other
proceeding under state or federal law in which a court or governmental
authority has assumed jurisdiction over substantially all of the assets or
business of the City, or if such jurisdiction has been assumed by leaving
the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority,
or the entry of an order confirming a plan of reorganization, arrangement,
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or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the City);
13. The consummation of a merger, consolidation, or acquisition involving an
obligated person or the sale of all or substantially all of the assets of the
obligated person, other than in the ordinary course of business, the entry
into a definitive agreement to undertake such an action or the termination
of a definitive agreement relating to any such actions, other than pursuant
to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of
a trustee, if material.
The City shall notify the MSRB, in a timely manner, of any failure by the City to provide
financial information or operating data in accordance with this Section by the time required by
such subsection.
(c) Limitations, Disclaimers, and Amendments. (i) The City shall be obligated to
observe and perform the covenants specified in this Section for so long as, but only for so
long as, the City remains an "obligated person" with respect to the Certificates within the
meaning of the Rule, except that the City in any event will give notice of any deposit
made in accordance with this Ordinance or applicable law that causes Certificates no
longer to be outstanding.
(ii) The provisions of this Section are for the sole benefit of the registered
owners and beneficial owners of the Certificates, and nothing in this Section, express or
implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder
to any other person. The City undertakes to provide only the financial information,
operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Section and does not hereby undertake to provide any other information
that may be relevant or material to a complete presentation of the City's financial results,
condition, or prospects or hereby undertake to update any information provided in
accordance with this Section or otherwise, except as expressly provided herein. The City
does not make any representation or warranty concerning such information or its
usefulness to a decision to invest in or sell Certificates at any future date.
(iii) UNDER NO CIRCUMSTANCE SHALL THE CITY BE LIABLE TO
THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE
OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES
RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY,
WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY
COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY
OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF
ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS
OR SPECIFIC PERFORMANCE.
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(iv) No default by the City in observing or performing its obligations under
this Section shall comprise a breach of or default under this Ordinance for purposes of
any other provision of this Ordinance. Nothing in this Section is intended or shall act to
disclaim, waive, or otherwise limit the duties of the City under federal and state securities
laws.
(v) Should the Rule be amended to obligate the City to make filings with or
provide notices to entities other than the MSRB, the City hereby agrees to undertake such
obligation with respect to the Certificates in accordance with the Rule as amended. The
provisions of this Section may be amended by the City from time to time to adapt to
changed circumstances that arise from a change in legal requirements, a change in law, or
a change in the identity, nature, status, or type of operations of the City, but only if (1) the
provisions of this Section, as so amended, would have permitted an underwriter to
purchase or sell Certificates in the primary offering of the Certificates in compliance with
the Rule, taking into account any amendments or interpretations of the Rule since such
offering as well as such changed circumstances and (2) either (a) the registered owners of
a majority in aggregate principal amount (or any greater amount required by any other
provision of this Ordinance that authorizes such an amendment) of the outstanding
Certificates consent to such amendment or (b) a person that is unaffiliated with the City
(such as nationally recognized bond counsel) determined that such amendment will not
materially impair the interest of the registered owners and beneficial owners of the
Certificates. If the City so amends the provisions of this Section, it shall include with any
amended financial information or operating data next provided in accordance with
subsection (b) of this Section an explanation, in narrative form, of the reason for the
amendment and of the impact of any change in the type of financial information or
operating data so provided. The City may also amend or repeal the provisions of this
continuing disclosure agreement if the SEC amends or repeals the applicable provision of
the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule
are invalid, but only if and to the extent that the provisions of this sentence would not
prevent an underwriter from lawfully purchasing or selling Certificates in the primary
offering of the Certificates.
(d) Procedures to Monitor Compliance with Continuing Disclosure Covenants. The
City hereby adopts the procedures attached hereto as Exhibit B as a means of monitoring
compliance with the continuing disclosure covenants made by the City herein.
Section 17. DEFEASANCE. (a) Deemed Paid. Any Certificate and the interest thereon
shall be deemed to be paid, retired and no longer outstanding (a "Defeased Certificate") within
the meaning of this Ordinance, except to the extent provided in subsection (e) of this Section,
when payment of the principal of such Certificate, plus interest thereon to the due date (whether
such due date be by reason of maturity or otherwise) either (i) shall have been made or caused to
be made in accordance with the terms thereof, or (ii) shall have been provided for on or before
such due date by irrevocably depositing with or making available to the Paying Agent/Registrar
in accordance with an escrow agreement or other instrument (the "Future Escrow Agreement")
for such payment (1) lawful money of the United States of America sufficient to make such
payment or (2) Defeasance Securities that mature as to principal and interest in such amounts
and at such times as will insure the availability, without reinvestment, of sufficient money to
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provide for such payment, and when proper arrangements have been made by the City with the
Paying Agent/Registrar for the payment of its services until all Defeased Certificates shall have
become due and payable. At such time as a Certificate shall be deemed to be a Defeased
Certificate hereunder, as aforesaid, such Certificate and the interest thereon shall no longer be
secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and
pledged or the pledge of Surplus Revenues as provided in this Ordinance, and such principal and
interest shall be payable solely from such money or Defeasance Securities.
(b) Investments. Any moneys so deposited with the Paying Agent/Registrar may at
the written direction of the City be invested in Defeasance Securities, maturing in the amounts
and times as hereinbefore set forth, and all income from such Defeasance Securities received by
the Paying Agent/Registrar that is not required for the payment of the Certificates and interest
thereon, with respect to which such money has been so deposited, shall be turned over to the
City, or deposited as directed in writing by the City. Any Future Escrow Agreement pursuant to
which the money and/or Defeasance Securities are held for the payment of Defeased Certificates
may contain provisions permitting the investment or reinvestment of such moneys in Defeasance
Securities or the substitution of other Defeasance Securities upon the satisfaction of the
requirements specified in subsection (a)(i) or (ii) above. All income from such Defeasance
Securities received by the Paying Agent/Registrar which is not required for the payment of the
Defeased Securities, with respect to which such money has been so deposited, shall be remitted
to the City or deposited as directed in writing by the City.
(c) Selection of Defeased Certificates. In the event that the City elects to defease less
than all of the principal amount of Certificates of a maturity, the Paying Agent/Registrar shall
select, or cause to be selected, such amount of Certificates by such random method as it deems
fair and appropriate.
(d) Defeasance Securities. The term "Defeasance Securities" means (i) direct,
noncallable obligations of the United States of America, including obligations that are
unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an
agency or instrumentality of the United States, including obligations that are unconditionally
guaranteed or insured by the agency or instrumentality and that, on the date the governing body
of the City adopts or approves the proceedings authorizing the issuance of refunding bonds, are
rated as to investment quality by a nationally recognized investment rating firm not less than
AAA or its equivalent; (iii) noncallable obligations of a state or an agency or a county,
municipality, or other political subdivision of a state that have been refunded and that, on the
date the governing body of the City adopts or approves the proceedings authorizing the issuance
of refunding bonds, are rated as to investment quality by a nationally recognized investment
rating firm not less than AAA or its equivalent and (iv) any securities and obligations now or
hereafter authorized by State law that are eligible to refund, retire or otherwise discharge
obligations such as the Certificates.
(e) Continuing Duty of Paying Agent/Registrar. Until all Certificates defeased under
this Section of this Ordinance shall become due and payable, the Paying Agent/Registrar for
such Certificates shall perform the services of Paying Agent/Registrar for such Certificates the
same as if they had not been defeased, and the City shall make proper arrangements to provide
and pay for such services.
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(f) The Pricing Officer is hereby authorized to modify the securities that are eligible
as Defeasance Securities and any such modification shall described in the Pricing Certificate.
Section 18. SALE OF CERTIFICATES; OFFICIAL STATEMENT. (a) The Certificates
may be sold by public offering (either through a negotiated or competitive offering) and the
terms and provisions of which are to be determined by the Pricing Officer in accordance with
Section 2 hereof, and in which the purchasers of the Certificates are designated. The Certificates
may be sold pursuant to a purchase agreement or notice of sale and bidding instructions
(collectively, the "Purchase Agreement") which the Pricing Officer is hereby authorized to
execute and deliver and in which the Purchaser of the Certificates shall be designated. The
Certificates shall initially be registered in the name of the Purchaser thereof as set forth in the
Pricing Certificate.
(b) The City hereby approves the form and content of the draft preliminary official
statement relating to the Certificates in the form attached hereto as Exhibit C and any addenda,
supplement or amendment thereto, and deems final the preliminary official statement and
approves the distribution of such preliminary official statement in the reoffering of the
Certificates by the Purchaser, with such changes therein or additions thereto as the Pricing
Officer executing the same may deem advisable or as are required by the Rule. The Pricing
Officer is hereby authorized, in the name and on behalf of the City, to approve, distribute, and
deliver a final preliminary official statement and a final official statement relating to the
Certificates to be used by the Purchaser in the marketing of the Certificates.
(c) The Pricing Officer is authorized, in connection with effecting the sale of the
Certificates, to obtain from a municipal bond insurance company so designated in the Pricing
Certificate (the "Insurer") a municipal bond insurance policy (the "Insurance Policy") in support
of the Certificates. To that end, should the Pricing Officer exercise such authority and commit
the City to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in
effect, the requirements of the Insurer relating to the issuance of the Insurance Policy are
incorporated by reference into this Ordinance and made a part hereof for all purposes,
notwithstanding any other provision of this Ordinance to the contrary. The Pricing Officer shall
have the authority to execute any documents to effect the issuance of the Insurance Policy by the
Insurer.
(d) The Mayor and Mayor Pro Tem, the Interim City Manager (or the City Manager
if one has been appointed), the Assistant City Manager, Director of Finance and City Secretary,
shall be and they are hereby expressly authorized, empowered and directed from time to time and
at any time to do and perform all such acts and things and to execute, acknowledge and deliver in
the name and under the corporate seal and on behalf of the City a Paying Agent/Registrar
Agreement, in the form presented at the meeting at which this Ordinance is adopted, with the
Paying Agent/Registrar and all other instruments, whether or not herein mentioned, as may be
necessary or desirable in order to carry out the terms and provisions of this Ordinance, the
Certificates, the sale of the Certificates, the Purchase Agreement and the Official Statement. In
case any officer whose signature shall appear on any Certificate shall cease to be such officer
before the delivery of such Certificate, such signature shall nevertheless be valid and sufficient
for all purposes the same as if such officer had remained in office until such delivery.
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Section 19. FURTHER PROCEDURES. That the Mayor, the City Secretary, the Interim
City Manager (or the City Manager if one has been appointed), the Assistant City Manager, and
Director of Finance, shall be and they are hereby expressly authorized, empowered, and directed
from time to time and at any time to do and perform all such acts and things and to execute,
acknowledge, and deliver in the name and under the corporate seal and on behalf of the City all
such instruments, whether or not herein mentioned, as may be necessary or desirable in order to
carry out the terms and provisions of this Ordinance, and the sale and delivery of the Certificates
and fixing all details in connection therewith. The City Council hereby authorizes the payment
of the fee of the Office of the Attorney General of the State of Texas for the examination of the
proceedings relating to the issuance of the Certificates, in the amount determined in accordance
with the provisions of Section 1202.004, Texas Government Code.
Section 20. CONSTRUCTION FUND; USE OF PROCEEDS.
(a) The City hereby creates and establishes and shall maintain on the books of the
City a separate fund to be entitled the "Series 2018 Certificates of Obligation Construction Fund"
(the "Construction Fund") for use by the City for payment of all lawful costs associated with the
acquisition and construction of the projects as provided in Section 1.
(b) The proceeds from the sale of the Certificates shall be deposited, on the date of
closing, in the manner described in a letter of instructions prepared by the City or on behalf of
the City by the City's financial advisor. The foregoing notwithstanding, any proceeds
representing accrued interest on the Certificates shall be deposited to the credit of the Interest
and Sinking Fund.
Section 21. INTEREST EARNINGS. That the interest earnings derived from the
investment of proceeds from the sale of the Certificates may be used along with other proceeds
for the construction of the permanent improvements set forth in Section 1 hereof for which the
Certificates are issued; provided that after completion of such permanent improvements, if any of
such interest earnings remain on hand, such interest earnings shall be deposited in the Interest
and Sinking Fund. It is further provided, however, that any interest earnings on proceeds which
are required to be rebated to the United States of America pursuant to this Ordinance hereof in
order to prevent the Certificates from being arbitrage bonds shall be so rebated and not
considered as interest earnings for the purposes of this Section.
Section 22. DEFAULT AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of
this Ordinance is hereby declared to be an Event of Default:
(i) the failure to make payment of the principal of or interest on any of the
Certificates when the same becomes due and payable; or
(ii) default in the performance or observance of any other covenant,
agreement or obligation of the City, the failure to perform which materially, adversely
affects the rights of the registered owners of the Certificates, including, but not limited to,
their prospect or ability to be repaid in accordance with this Ordinance, and the
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continuation thereof for a period of 60 days after notice of such default is given by any
registered owner to the City.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any
registered owner or an authorized representative thereof, including, but not limited to, a
trustee or trustees therefor, may proceed against the City, or any official, officer or
employee of the City in their official capacity, for the purpose of protecting and enforcing
the rights of the registered owners under this Ordinance, by mandamus or other suit,
action or special proceeding in equity or at law, in any court of competent jurisdiction,
for any relief permitted by law, including the specific performance of any covenant or
agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or
in violation of any right of the registered owners hereunder or any combination of such
remedies.
(ii) It is provided that all such proceedings shall be instituted and maintained
for the equal benefit of all registered owners of Certificates then outstanding.
(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy shall be cumulative
and shall be in addition to every other remedy given hereunder or under the Certificates
or now or hereafter existing at law or in equity; provided, however, that notwithstanding
any other provision of this Ordinance, the right to accelerate the debt evidenced by the
Certificates shall not be available as a remedy under this Ordinance.
(ii) The exercise of any remedy herein conferred or reserved shall not be
deemed a waiver of any other available remedy.
(iii) By accepting the delivery of a Certificate authorized under this Ordinance,
such registered owner agrees that the certifications required to effectuate any covenants
or representations contained in this Ordinance do not and shall never constitute or give
rise to a personal or pecuniary liability or charge against the officers, employees or
members of the City or the City Council.
(iv) None of the members of the City Council, nor any other official or officer,
agent, or employee of the City, shall be charged personally by the registered owners with
any liability, or be held personally liable to the registered owners under any term or
provision of this Ordinance, or because of any Event of Default or alleged Event of
Default under this Ordinance.
Section 23. MISCELLANEOUS PROVISIONS. (a) Preamble. The preamble to this
Ordinance is incorporated by reference and made a part hereof for all purposes.
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(b) Titles Not Restrictive. That the titles assigned to the various sections of this
Ordinance are for convenience only and shall not be considered restrictive of the subject matter
of any section or of any part of this Ordinance.
(c) Rules of Construction. The words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Ordinance as a whole and not to any particular section or
other subdivision. Except where the context otherwise requires, terms defined in this Ordinance
to impart the singular number shall be considered to include the plural number and vice versa.
References to any named person means that party and its successors and assigns. References to
any constitutional, statutory or regulatory provision means such provision as it exists on the date
this Ordinance is adopted by the City and any future amendments thereto or successor provisions
thereof. Any reference to "FORM OF CERTIFICATE" shall refer to the form of the Certificates
set forth in Exhibit A to this Ordinance. Any reference to the payment of principal in this
Ordinance shall be deemed to include the payment of any mandatory sinking fund redemption
payments as may be described herein.
(d) Inconsistent Provisions. All ordinances, orders and resolutions, or parts thereof,
which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed
and declared to be inapplicable, and the provisions of this Ordinance shall be and remain
controlling as to the matters prescribed herein.
(e) Severability. If any word, phrase, clause, paragraph, sentence, part, portion, or
provision of this Ordinance or the application thereof to any person or circumstance shall be held
to be invalid, the remainder of this Ordinance shall nevertheless be valid and the City hereby
declares that this Ordinance would have been enacted without such invalid word, phrase, clause,
paragraph, sentence, part, portion, or provisions.
(f) Governing Law. This Ordinance shall be construed and enforced in accordance
with the laws of the State of Texas.
(g) Open Meeting. The City officially finds and determines that the meeting at which
this Ordinance is adopted was open to the public; and that public notice of the time, place, and
purpose of such meeting was given, all as required by Chapter 551, Texas Government Code.
(h) Application of Chapter 1208, Government Code. Chapter 1208, Texas
Government Code, applies to the issuance of the Certificates and the pledge of ad valorem taxes
and the Surplus Revenues granted by the City under Section 6(b), and such pledge is therefore
valid, effective, and perfected. If Texas law is amended at any time while the Certificates are
outstanding and unpaid such that the pledge of the ad valorem taxes and Surplus Revenues
granted by the City is to be subject to the filing requirements of Chapter 9, Texas Business &
Commerce Code, then in order to preserve to the Registered Owners of the Certificates the
perfection of the security interest in said pledge, the City agrees to take such measures as it
determines are reasonable and necessary under Texas law to comply with the applicable
provisions of Chapter 9, Texas Business & Commerce Code and enable a filing to perfect the
security interest in said pledge to occur.
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(i) Immediate Effect. In accordance with the provisions of Section 1201.028, Texas
Government Code, this Ordinance shall be effective immediately upon its adoption by the City
Council.
[Remainder of page intentionally left blank.]
Ordinance
City of College Station, Texas
Certificates of Obligation, Series 2018
SIGNATURE PAGE
PASSED, APPROVED AND EFFECTIVE THIS APRIL 26, 2018.
City Secretary; City of College Station Mayor; City of College Station
(CITY SEAL)
APPROVED:
McCall, Parkhurst & Horton L.L.P., Dallas, Texas
Bond Counsel
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EXHIBIT A
FORM OF CERTIFICATE
The form of the Certificates, including the form of Paying Agent/Registrar's
Authentication Certificate, the form of Assignment and the form of Registration Certificate of
the Comptroller of Public Accounts of the State of Texas to be attached only to the Certificates
initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as
follows, with such appropriate variations, omissions, or insertions as are permitted or required by
this Ordinance and with the Certificates to be completed with information set forth in the Pricing
Certificate. The Form of Certificate as it appears in this Exhibit A shall be completed, amended
and modified by Bond Counsel to incorporate the information set forth in the Pricing Certificate
but it is not required for the Form of Certificate to reproduced as an exhibit to the Pricing
Certificate.
NO. _____
UNITED STATES OF AMERICA
STATE OF TEXAS
COUNTY OF BRAZOS
CITY OF COLLEGE STATION, TEXAS
CERTIFICATES OF OBLIGATION
SERIES 2018
Principal
Amount
$[]
MATURITY DATE INTEREST RATE DELIVERY DATE CUSIP NO.
% [], 2018
REGISTERED OWNER:
PRINCIPAL AMOUNT:
ON THE MATURITY DATE SPECIFIED ABOVE, THE CITY OF COLLEGE
STATION, TEXAS, in Brazos County (the "City"), being a political subdivision of the State of
Texas, hereby promises to pay to the Registered Owner specified above or to the registered
assignee hereof (either being hereinafter called the "registered owner") the Principal Amount
specified above, and to pay interest thereon (calculated on the basis of a 360-day year of twelve
30-day months), from the Delivery Date specified above, to the Maturity Date specified above,
or the date of its redemption prior to scheduled maturity, at the interest rate per annum specified
above, with said interest payable on February 15, 2019, and semiannually on each August 15 and
February 15 thereafter until maturity or prior redemption; except that if this Certificate is
required to be authenticated and the date of its authentication is later than February 15, 2019,
such interest is payable semiannually on each August 15 and February 15 following such date.
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THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money
of the United States of America, without exchange or collection charges. At maturity or
redemption prior to maturity, the principal of this Certificate shall be paid to the registered owner
hereof upon presentation and surrender of this Certificate at the designated corporate trust office
in Dallas, Texas (the "Designated Trust Office") of The Bank of New York Mellon Trust
Company, N.A., which is the "Paying Agent/Registrar" for this Certificate. The payment of
interest on this Certificate shall be made by the Paying Agent/Registrar to the registered owner
hereof on each interest payment date by check, dated as of such interest payment date, drawn by
the Paying Agent/Registrar on, and payable solely from, funds of the City required by the
ordinance authorizing the issuance of this Certificate (the "Certificate Ordinance") to be on
deposit with the Paying Agent/Registrar for such purpose as hereinafter provided; and such
check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage
prepaid, on each such interest payment date, to the registered owner hereof, at its address as it
appeared on the last business day of the month preceding each such date (the "Record Date") on
the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. Any
accrued interest due at maturity as provided herein shall be paid to the registered owner upon
presentation and surrender of this Certificate for payment at the Designated Trust Office of the
Paying Agent/Registrar. The City covenants with the registered owner of this Certificate that on
or before each principal and interest payment date for this Certificate it will make available to the
Paying Agent/Registrar, from the "Interest and Sinking Fund" created by the Certificate
Ordinance, the amounts required to provide for the payment, in immediately available funds, of
all principal of and interest on the Certificates, when due.
IN THE EVENT OF NON-PAYMENT of interest on a scheduled payment date, and for
30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be
established by the Paying Agent/Registrar, if and when funds for the payment of such interest
have been received from the City. Notice of the Special Record Date and of the scheduled
payment date of the past due interest ("Special Payment Date", which shall be 15 days after the
Special Record Date) shall be sent at least five business days prior to the Special Record Date by
United States mail, first-class postage prepaid, to the address of each registered owner of a
Certificate appearing on the Registration Books kept by the Paying Agent/Registrar at the close
of business on the last business day next preceding the date of mailing of such notice.
IF THE DATE for the payment of the principal of or interest on this Certificate shall be a
Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the
Designated Trust Office of the Paying Agent/Registrar is located are authorized by law or
executive order to close, then the date for such payment shall be the next succeeding day which
is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are
authorized to close; and payment on such date shall have the same force and effect as if made on
the original date payment was due.
THIS CERTIFICATE is one of a Series of Certificates dated as of June 11, 2018,
authorized in accordance with the Constitution and laws of the State of Texas in the principal
amount of $[_], for the purpose of paying contractual obligations to be incurred by the City for
the following public purposes: (i) constructing and improving streets and roads including related
drainage, landscaping, lighting, pedestrian improvements and signage related thereto; (ii)
designing, constructing, equipping and installing park and recreation equipment and
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improvements including new and existing facilities, park infrastructure improvements, upgrades
and rehabilitation; (iii) purchasing and installing technology improvements including video
surveillance; (iv) purchasing land for a new Fire Station; (v) designing and constructing a new
City Hall; (vi) constructing improvements and extensions to the City's combined waterworks,
sewer and electric systems including distribution, transmission, system lines, wells, plant
improvements, and acquisition of interests in land; and (vii) the payment of fiscal, engineering
and legal fees incurred in connection therewith and payment of the costs of issuance of the
Certificates.
ON FEBRUARY 15, 2028, or on any date thereafter, the Certificates of this Series
maturing on February 15, 2027 and thereafter may be redeemed prior to their scheduled
maturities, at the option of the City, in whole, or in part, at par and accrued interest to the date
fixed for redemption. The years of maturity of the Certificates called for redemption at the
option of the City prior to their stated maturity shall be selected by the City. The Certificates or
portions thereof redeemed within a maturity shall be selected by lot or other method by the
Paying Agent/Registrar; provided, that during any period in which ownership of the Certificates
is determined only by a book entry at a securities depository for the Certificates, if fewer than all
of the Certificates of the same maturity and bearing the same interest rate are to be redeemed, the
particular Certificates of such maturity and bearing such interest rate shall be selected in
accordance with the arrangements between the City and the securities depository.
AT LEAST THIRTY days prior to the date fixed for any such redemption, a written
notice of such redemption shall be given to the registered owner of each Certificate or a portion
thereof being called for redemption by depositing such notice in the United States mail, first-
class postage prepaid, addressed to each such registered owner at his address shown on the
Registration Books of the Paying Agent/Registrar. By the date fixed for any such redemption
due provision shall be made by the City with the Paying Agent/Registrar for the payment of the
required redemption price for this Certificate or the portion hereof which is to be so redeemed,
plus accrued interest thereon to the date fixed for redemption. If such notice of redemption is
given, and if due provision for such payment is made, all as provided above, this Certificate, or
the portion hereof which is to be so redeemed, thereby automatically shall be redeemed prior to
its scheduled maturity, and shall not bear interest after the date fixed for its redemption, and shall
not be regarded as being outstanding except for the right of the registered owner to receive the
redemption price plus accrued interest to the date fixed for redemption from the Paying
Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall
record in the Registration Books all such redemptions of principal of this Certificate or any
portion hereof. If a portion of any Certificate shall be redeemed a substitute Certificate or
Certificates having the same maturity date, bearing interest at the same rate, in Authorized
Denominations, at the written request of the registered owner, and in aggregate principal amount
equal to the unredeemed portion thereof, will be issued to the registered owner upon the
surrender thereof for cancellation, at the expense of the City, all as provided in the Ordinance.
IF AT THE TIME OF MAILING of notice of optional redemption there shall not have
either been deposited with the Paying Agent/Registrar or legally authorized escrow agent
immediately available funds sufficient to redeem all the Certificates called for redemption, such
notice must state that it is conditional, and is subject to the deposit of the redemption moneys
with the Paying Agent/Registrar or legally authorized escrow agent at or prior to the redemption
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date, and such notice shall be of no effect unless such moneys are so deposited on or prior to the
redemption date. If such redemption is not effectuated, the Paying Agent/Registrar shall, within
five days thereafter, give notice in the manner in which the notice of redemption was given that
such moneys were not so received and shall rescind the redemption.
ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered
certificates, without interest coupons, in Authorized Denominations. As provided in the
Certificate Ordinance, this Certificate may, at the request of the registered owner or the assignee
or assignees hereof, be assigned, transferred, and exchanged for a like aggregate principal
amount of fully registered certificates, without interest coupons, payable to the appropriate
registered owner, assignee, or assignees, as the case may be, having the same maturity date, and
bearing interest at the same rate, in Authorized Denominations as requested in writing by the
appropriate registered owner, assignee, or assignees, as the case may be, upon surrender of this
Certificate to the Paying Agent/Registrar at its Designated Trust Office for cancellation, all in
accordance with the form and procedures set forth in the Certificate Ordinance. Among other
requirements for such assignment and transfer, this Certificate must be presented and
surrendered to the Paying Agent/Registrar at its Designated Trust Office, together with proper
instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying
Agent/Registrar, evidencing assignment of this Certificate or any portion or portions hereof in an
Authorized Denomination to the assignee or assignees in whose name or names this Certificate
or any such portion or portions hereof is or are to be transferred and registered. The form of
Assignment printed or endorsed on this Certificate may be executed by the registered owner to
evidence the assignment hereof, but such method is not exclusive, and other instruments of
assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of
this Certificate or any portion or portions hereof from time to time by the registered owner. The
foregoing notwithstanding, in the case of the exchange of an assigned and transferred Certificate
or Certificates or any portion or portions thereof, such fees and charges of the Paying
Agent/Registrar will be paid by the City. The one requesting such exchange shall pay the Paying
Agent/Registrar's reasonable standard or customary fees and charges for exchanging any
Certificate or portion thereof. In any circumstance, any taxes or governmental charges required
to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, or
exchange as a condition precedent to the exercise of such privilege. In any circumstance, neither
the City nor the Paying Agent/Registrar shall be required (1) to make any transfer or exchange
during a period beginning at the opening of business 30 days before the day of the first mailing
of a notice of redemption of Certificates and ending at the close of business on the day of such
mailing, or (2) to transfer or exchange any Certificates so selected for redemption when such
redemption is scheduled to occur within 45 calendar days.
WHENEVER the beneficial ownership of this Certificate is determined by a book entry
at a securities depository for the Certificates, the foregoing requirements of holding, delivering
or transferring this Certificate shall be modified to require the appropriate person or entity to
meet the requirements of the securities depository as to registering or transferring the book entry
to produce the same effect.
IN THE EVENT any Paying Agent/Registrar for the Certificates is changed by the City,
resigns, or otherwise ceases to act as such, the City has covenanted in the Certificate Ordinance
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that it promptly will appoint a competent and legally qualified substitute therefor, and promptly
will cause written notice thereof to be mailed to the registered owners of the Certificates.
IT IS HEREBY certified, recited and covenanted that this Certificate has been duly and
validly authorized, issued, and delivered; that all acts, conditions, and things required or proper
to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of
this Certificate have been performed, existed, and been done in accordance with law; that this
Certificate is a direct obligation of said City, issued on the full faith and credit thereof; and that
in accordance with the terms of the Certificate Ordinance, annual ad valorem taxes sufficient to
provide for the payment of the interest on and principal of this Certificate, as such interest comes
due and such principal matures, have been levied and ordered to be levied against all taxable
property in said City, and have been pledged for such payment, within the limit prescribed by
law; and that a limited pledge (not to exceed $1,000) of the Surplus Revenues from the operation
of the City's combined municipal electric light and power, waterworks and sewer system
remaining after payment of all operation and maintenance expenses thereof and any other
obligations heretofore or hereafter incurred to which such revenues have been or shall be
encumbered by a lien on and pledge of such revenues superior to the lien on and pledge of such
revenues to the Certificates, have been pledged as additional security for the Certificates.
BY BECOMING the registered owner of this Certificate, the registered owner thereby
acknowledges all of the terms and provisions of the Certificate Ordinance, agrees to be bound by
such terms and provisions, acknowledges that the Certificate Ordinance is duly recorded and
available for inspection in the official minutes and records of the City, and agrees that the terms
and provisions of this Certificate and the Certificate Ordinance constitute a contract between
each registered owner hereof and the City.
IN WITNESS WHEREOF, this Certificate has been signed with the manual or facsimile
signature of the Mayor of the City, attested by the manual or facsimile signature of the City
Secretary, and the official seal of the City has been duly affixed to, or impressed, or placed in
facsimile, on this Certificate.
xxxxx xxxxx
City Secretary; City of College Station Mayor; City of College Station
(SEAL)
FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
It is hereby certified that this Certificate of Obligation has been issued under the
provisions of the proceedings adopted by the City as described in the text of this Certificate of
Obligation; and that this Certificate of Obligation has been issued in exchange for or replacement
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of a Certificate of Obligation of an issue which originally was approved by the Attorney General
of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas.
Dated: _______________ The Bank of New York Mellon
Trust Company, N.A.
Paying Agent/Registrar
By:
Authorized Representative
[FORM OF COMPTROLLER'S CERTIFICATE ATTACHED TO
THE CERTIFICATE (CERTIFICATE NO. T-1) UPON INITIAL DELIVERY THEREOF]
COMPTROLLER'S CERTIFICATE
OFFICE OF COMPTROLLER §
REGISTER NO. ________
STATE OF TEXAS §
I hereby certify that there is on file and of record in my office a certificate of the Attorney
General of the State of Texas to the effect that this Certificate has been examined by him as
required by law, and that he finds that it has been issued in conformity with the Constitution and
laws of the State of Texas, and that it is a valid and binding obligation of the City of College
Station, Texas, payable in the manner provided by and in the ordinance authorizing same, and
said Certificate has this day been registered by me.
WITNESS MY HAND and seal of office at Austin, Texas this ___________________.
__________________________________________
Comptroller of Public Accounts of
the State of Texas
(SEAL)
FORM OF ASSIGNMENT
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto:
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Please insert Social Security or Taxpayer Identification Number of Transferee
Please print or type name and address, including zip code of Transferee
the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints:
____________________________________, attorney, to register the transfer of the within
Certificate on the books kept for registration thereof, with full power of substitution in the
premises.
Dated: __________________.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed
by an eligible guarantor institution
participating in a securities transfer
association recognized signature guarantee
program.
NOTICE: The signature above must
correspond with the name of the registered
owner as it appears upon the front of this
Certificate in every particular, without
alteration or enlargement or any change
whatsoever.
INSERTIONS FOR THE INITIAL CERTIFICATE. The initial Certificate shall be in the
form set forth in paragraph (a) of this Form of Certificate, except that:
i. immediately under the name of the Certificate, the headings "INTEREST
RATE" and "MATURITY DATE" shall both be completed with the words
"As shown below" and "CUSIP NO. _____" shall be deleted.
ii. the first paragraph shall be deleted and the following will be inserted:
THE CITY OF COLLEGE STATION, TEXAS, in Brazos County, Texas (the "City"),
being a political subdivision of the State of Texas, hereby promises to pay to the Registered
Owner specified above or to the registered assignee hereof (either being hereinafter called the
"registered owner") on the Maturity Dates, in the Principal Amounts and bearing interest at the
per annum Interest Rates set forth in the following schedule:
Maturity
Date
Principal
Amount
Interest
Rate
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The City promises to pay interest on the unpaid principal amount hereof (calculated on
the basis of a 360-day year of twelve 30-day months) from the Delivery Date above at the
respective Interest Rate per annum specified above. Interest is payable on February 15, 2019 and
on each August 15 and February 15 thereafter to the date of payment of the Principal Amounts
specified above, or the date of redemption prior to maturity; except, that if this Certificate is
required to be authenticated and the date of its authentication is later than the first Record Date
(hereinafter defined), such principal amount shall bear interest from the interest payment date
next preceding the date of authentication, unless such date of authentication is after any Record
Date but on or before the next following interest payment date, in which case such principal
amount shall bear interest from such next following interest payment date; provided, however,
that if on the date of authentication hereof the interest on the Certificate or Certificates, if any,
for which this Certificate is being exchanged is due but has not been paid, then this Certificate
shall bear interest from the date to which such interest has been paid in full."
iii. The initial Certificate shall be numbered "T-1."
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EXHIBIT B
PROCEDURES REGARDING COMPLIANCE WITH FEDERAL TAX AND
CONTINUING DISCLOSURE COVENANTS
This Exhibit is intended to assist the City of College Station (the "City") in complying
with the federal income tax covenants and securities disclosure covenants as they apply to the
issuance of tax-exempt debt securities such as the Certificates of Obligation (the "Obligations").
These procedures should be read together with any federal tax certifications, bond covenants,
letters or memoranda from bond counsel and any attachments thereto (collectively, the "Closing
Documents"). Failure to comply with federal guidelines could have serious consequences for
investors, the City and its officials.
These procedures shall apply to the Obligations, until they are superseded by a change in
circumstances at which time the City's bond counsel will propose new procedures to be adopted.
I. FEDERAL TAX LAW
1. Arbitrage Compliance.
Arbitrage refers to the difference between the interest paid on tax-exempt Obligations and
the interest earned by investing the proceeds of tax-exempt Obligations in higher-yielding
investments. Such higher-yielding investments could take the form of loans, securities, real
property, personal property, or other investments that could yield a profit to the City. Federal
income tax laws generally restrict the ability to earn arbitrage utilizing the proceeds of tax-
exempt Obligations. Generally, any profit from investing Obligation proceeds at a yield above
the yield paid on the Obligations belongs to the federal government and must be rebated to the
federal government. If the City fails to comply federal tax guidelines, Obligations could be
deemed to be “arbitrage bonds” by the Internal Revenue Service (the “IRS”), which would
expose the City to monetary liability from the City’s investors.
The arbitrage yield on the Obligations is set forth on the IRS Form 8038-G.
The Assistant City Manager and the City Treasurer (including such other employees of
the City who report to such officers) (collectively, the "Responsible Person") will review the
Closing Documents periodically (at least once a year) to ascertain if an exception to arbitrage
compliance applies.
a. Procedures applicable to the Obligation. The Responsible Person shall undertake
the following procedures.
i. If the City plans to spend funds currently on hand for a future project with
the intent to later repay such funds from a debt issue, the Responsible
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Person shall contact Bond Counsel to obtain advice regarding a
reimbursement resolution. The Responsible Person shall maintain any
official action of the City (such as a reimbursement resolution) stating the
City's intent to reimburse with the proceeds of the Obligations any amount
expended prior to the Issue Date for the acquisition, renovation or
construction of the Project.
ii. The Responsible Person shall ensure that the applicable information return
(e.g., U.S. Internal Revenue Service ("IRS") Form 8038-G, 8038-GC, or
any successor forms) is timely filed with the IRS.
iii. If proceeds of the Obligations are to be invested in interest-earning
investments, assure that, unless excepted from rebate and yield restriction
under section 148(f) of the Code, excess investment earnings are
computed and paid to the U.S. government at such time and in such
manner as directed by the IRS (i) at least every 5 years after the Issue Date
and (ii) within 30 days after the date the Obligations are retired. If
proceeds of the Obligations are to be invested in interest-earning
investments, the Responsible Person should contact the City's arbitrage
consultant regarding such matters.
iv. The Responsible Person shall monitor all amounts deposited into a sinking
fund or funds pledged (directly or indirectly) to the payment of the
Obligations, such as the Interest and Sinking Fund (the "I&S Fund"), to
assure that the maximum amount invested within such applicable fund at a
yield higher than the yield on the Obligations does not exceed an amount
equal to the debt service on the Obligations in the succeeding 12 month
period plus a carryover amount equal to one-twelfth of the principal and
interest payable on the Obligations for the immediately preceding 12-
month period.
NOTE: the purpose of the I&S Fund is to achieve a proper
matching of revenues with principal and interest payments within
each fiscal year. The I&S Fund should be used a mechanism for
payment of current debt service and not as a long-term investment
fund for debt service many years in the future.
v. The Responsible Person shall ensure that no more than 50% of the
proceeds of the Obligations are invested in an investment with a
guaranteed yield for 4 years or more.
b. With respect to the investment and expenditure of the proceeds of the Obligations
that are issued to finance public improvements or to acquire land or personal
property, the Responsible Person shall undertake the following.
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i. The Responsible Person shall instruct the persons who are primarily
responsible for the construction, renovation or acquisition of the facilities
financed with Obligations (the “Project”) that the Project must (i) proceed
with due diligence toward completion and that (ii) binding contracts for
the expenditure of at least 5% of the proceeds of the Obligations will be
entered into within six (6) months of the date of closing of the Obligations
(the “Issue Date”). The Responsible Person shall monitor that the above
requirements are satisfied.
ii. The Responsible Person shall monitor that at least 85% of the proceeds of
the Obligations to be used for the construction, renovation or acquisition
of the Project are expended within three years of the Issue Date.
iii. The Responsible Person shall monitor investment of proceeds of the
Obligations and restrict the yield of the investments to the yield on the
Obligations after three years of the Issue Date.
iv. To the extent that there are any unspent proceeds of the Obligations at the
time the Obligations are later refunded, or if there are unspent proceeds of
the Obligations that are being refunded by a new issuance of Obligations,
the Responsible Person shall continue monitoring the expenditure of such
unspent proceeds to ensure compliance with federal tax law with respect
to both the refunded Obligations and any Obligations being issued for
refunding purposes, and shall contact Bond Counsel as necessary.
B. Private Business Use.
Generally, the proceeds of tax-exempt Obligations may not inure to the benefit of entities
other than state or local governments (“private business use”). Private business use occurs
whenever Obligation proceeds are used to benefit any entity other than a state or local
government, including nonprofit corporations and the federal government.
A series of Obligations may lose their tax-exempt status if: (i) more than 10% of the
proceeds of the Obligations are to be used for any private business use and the payment of the
principal or interest on more than 10% of the proceeds of the Obligations is secured by or
payable from property used for a private business use, or (ii) the amount of proceeds of the
Obligations used to make loans to borrowers other than state and local governments exceeds the
lesser of 5% of the proceeds or $15 million.
With respect to the use of the facilities financed or refinanced with the proceeds of the
Obligations, the Responsible Person shall undertake the following to ensure the Obligations do
not violate private business use tests.
B-4
a. The Responsible Person shall develop procedures or a “tracking system” to
identify, log and record all property financed with tax-exempt debt and identify
the issue of Obligations used to finance such property.
b. The Responsible Person shall monitor and record the date on which the Project is
substantially complete and available to be used for the purpose intended.
c. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has any contractual
right (such as a lease, research contract, naming rights agreement, purchase
contract, management agreement or other service agreement) with respect to any
portion of the Project.
d. Before entering into any private business use arrangement that involves the use of
the Project, the Responsible Person must obtain a description of the proposed
private business use arrangement and determine whether such arrangement, if put
into effect, will be consistent with the restrictions on private business use of the
Project. In connection with the evaluation of any proposed private business use
arrangement, the Responsible Person should consult with Bond Counsel to
discuss whether such arrangement, if put into effect, will be consistent with the
restrictions on private business use of the Project, and, if not, whether any
“remedial action” permitted under federal guidelines may be taken as a means of
enabling such private business use without adversely affecting the tax-exempt
status of the Obligations.
e. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, the employees of the
City, the agents of the City or members of the general public has a right to use the
output of the Project (e.g., water, gas, electricity, capacity) on any basis other than
standard rates and charges.
f. The Responsible Person shall monitor and record whether, at any time the
Obligations are outstanding, any person, other than the City, has a naming right
for the Project or any other contractual right granting an intangible benefit.
g. Prior to any sale of property owned by the City (real or personal), the Responsible
Person must confirm whether such property was financed with tax-exempt debt,
and if so, determine whether the proposed disposition of the property could
impact the tax-exempt status of the series of Obligations that financed the
acquisition of such property.
h. The Responsible Person shall take any action necessary to remediate any failure
to maintain compliance with the covenants contained in the ordinance authorizing
the issuance of the applicable series of Obligations.
B-5
C. Record Retention.
The Responsible Person will maintain or cause to be maintained all records relating to the
investment and expenditure of the proceeds of the Obligations and the use of the Project financed
or refinanced thereby for a period ending three (3) years after the complete extinguishment of the
Obligations. If any portion of the Obligations is refunded with the proceeds of another series of
Obligations, such records shall be maintained until the three (3) years after the refunding
Obligations mature or are otherwise paid off. Such records can be maintained in paper or
electronic format.
For purposes of these procedures, the Memorandum of Bond Counsel dated December 1,
2011 styled "Certain Federal Income Tax Considerations for Record Retention – Record
Management Program and Periodic Compliance Review" in incorporated herein and should be
reviewed periodically, at least once per year, by the Responsible Person.
D. Responsible Person & Continuity.
Each Responsible Person shall receive appropriate training regarding the City’s
accounting system, contract intake system, facilities management and other systems necessary to
track the investment and expenditure of the proceeds and the use of the facilities financed with
the proceeds of the Obligations. The foregoing notwithstanding, the Responsible Person is
authorized and instructed to retain such experienced advisors and agents as may be necessary to
carry out the purposes of these instructions.
Prior to cessation of employment with the City, the Responsible Person should identify
their successor to maintain compliance with these procedures.
II. FEDERAL SECURITIES LAW
Obligations, whether taxable or tax-exempt, sold in a public offering in an amount of
$1 million or more are subject to Rule 15c2-12 (the “Rule”) of the United States Securities and
Exchange Commission (the “SEC”). Additionally, the City may have covenanted to comply
with the Rule even with respect to Obligations that would otherwise be exempt from the Rule
(e.g., Obligations sold in a private placement or Obligations sold in an amount less than
$1 million). Pursuant to the Rule, the City is required to make annual filings of certain
information, as well as make filings upon the occurrence of certain specified events. All filings
must be made with the Municipal Securities Rulemaking Board (the “MSRB”) through its
Electronic Municipal Market Access System (“EMMA”) at emma.msrb.org.
A. Annual Filings.
The City must file the information listed below with EMMA within six (6) months of
each fiscal year end for so long as the respective series of Obligations remains outstanding. The
City’s fiscal year ends on September 30 of each year. Therefore, the City must provide updated
B-6
information by March 31 of the subsequent year. If audited financial statements are not available
by March 31, the City must provide unaudited financial information by such date and provide
audited financial statements when such statements become available. The City must file each of
the following items with EMMA:
(1) The City’s audited financial statements; and
(2) An update of the financial tables included in the Official Statement used in
connection with the Obligations as described under the caption "Continuing
Disclosure of Information". The information should be from the most recent
fiscal year end.
The Responsible Person must compile, prepare and make such filings within the required
time, or, alternatively, contract with a third-party, such as the City’s financial advisor, to make
such filings on the City’s behalf.
B. Notices of Specified Events.
The City must provide notice of any of the following events with respect to the
Obligations to the MSRB in a timely manner (but not in excess of ten business days after the
occurrence of the event):
(1) Principal and interest payment delinquencies;
(2) Non-payment related defaults, if material;
(3) Unscheduled draws on debt service reserves reflecting financial difficulties;
(4) Unscheduled draws on credit enhancements reflecting financial difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
(6) Adverse tax opinions, the issuance by the IRS of proposed or final determinations
of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other material
notices or determinations with respect to the tax status of the Obligations, or other
material events affecting the tax status of the Obligations;
(7) Modifications to rights of Obligation holders, if material;
(8) Obligations calls (includes redemptions and other early payments), if material,
and tender offers;
(9) Defeasances;
(10) Release, substitution, or sale of property securing repayment of the Obligations, if
material;
B-7
(11) Rating changes;
(12) Bankruptcy, insolvency, receivership or similar event of the City;
(13) The consummation of a merger, consolidation, or acquisition involving the City
or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such
actions, other than pursuant to its terms, if material;
(14) Appointment of a successor or additional paying agent or the change of name of a
paying agent, if material; and
(15) In a timely manner, notice of a failure of the City to make the required annual
filings listed in Subsection II(A) above.
The Responsible Person should review this list at regular intervals to determine whether
any event has occurred that may require a filing with EMMA.
C-1
EXHIBIT C
PRELIMINARY OFFICIAL STATEMENT
PRELIMINARY OFFICIAL STATEMENT
DATED MAY __, 2018
NEW ISSUE - Book-Entry-Only
In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for federal income tax purposes under statutes,
regulations, published rulings and court decisions existing on the date thereof, subject to the matters described under “TAX MATTERS” herein.
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$36,885,000*
CERTIFICATES OF OBLIGATION
SERIES 2018
Dated Date: June 1, 2018 Due: February 15, as shown on inside cover
Interest Accrual Date: Date of Delivery The $36,885,000* City of College Station, Texas Certificates of Obligation, Series 2018 (the “Certificates”) are being issued by the City of
College Station, Texas (the “City”) pursuant to the terms of an ordinance adopted by the governing body of the City. In the ordinance, the City
Council of the City delegated authority to certain authorized officials of the City to finalize the pricing of the Certificates.
The Certificates are issuable only in fully registered form in the denomination of $5,000 principal amount or integral multiples thereof, initially
registered solely in the name of Cede & Co., as registered owner and nominee for The Depository Trust Company (“DTC”), New York, New
York, acting as securities depository for the Certificates. The Certificates initially will be available to purchasers in book-entry-form only. So
long as Cede & Co. is the registered owner of the Certificates, as nominee for DTC, the Paying Agent/Registrar, initially The Bank of New York
Mellon Trust Company, N.A., Dallas, Texas (the “Paying Agent/Registrar”) will pay the principal of and interest on the Certificates to Cede &
Co., which will, in turn, remit such amounts to DTC participants for subsequent disbursement to the beneficial owners of the Certificates.
Interest on the Certificates will accrue from the date of delivery, and will be payable February 15 and August 15 of each year commencing
February 15, 2019 until maturity or prior redemption and will be calculated on the basis of a 360-day year consisting of twelve 30-day months
(see “THE CERTIFICATES - GENERAL DESCRIPTION”)
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2028, in whole or in part in
principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued
interest to the date of redemption (see “THE CERTIFICATES – OPTIONAL REDEMPTION”).
In addition to the foregoing optional redemption provision, if in connection with the pricing of the Certificates the principal amounts designated in
the Maturity Schedule herein are combined to create Term Certificates, each such Term Certificate shall be subject to mandatory sinking fund
redemption commencing on February 15 of the first year which has been combined to form such Term Certificate and continuing on February 15 in
each year thereafter until the stated maturity date of that Term Certificate, and the amount required to be redeemed in any year shall be equal to the
principal amount for such year set forth in the serial maturity schedule on the inside cover. Term Certificates to be redeemed in any year by mandatory
sinking fund redemption shall be redeemed at par and shall be selected by lot from the Term Certificates then subject to redemption (see “THE
CERTIFICATES - MANDATORY SINKING FUND REDEMPTION”).
SEE MATURITY SCHEDULE, INTEREST RATES AND YIELDS ON INSIDE COVER
The Certificates are payable from annual ad valorem taxes levied against all taxable property in the City, within the legal limits prescribed by
law. The Certificates are additionally payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s combined
utility system (see “THE CERTIFICATES – SECURITY AND SOURCE OF PAYMENT,” and “– TAX RATE LIMITATION”).
The Certificates are offered for delivery, when issued, and received by the initial purchaser (the “Initial Purchaser”) and subject to the opinion
of the Attorney General of the State of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel for the City
(see “APPENDIX C – FORMS OF OPINIONS OF BOND COUNSEL”). Certain legal matters will be passed upon for the City by McCall,
Parkhurst & Horton, L.L.P., Dallas, Texas, Disclosure Counsel for the City. It is expected that the Certificates will be available for delivery
through the services of DTC on or about June 19, 2018.
BIDS DUE TUESDAY, MAY 22, 2018, AT 10:30 A.M., CDT
Ratings:
Moody’s: "Applied for"
S&P: "Applied for"
(See “OTHER INFORMATION
– RATINGS” herein
This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. __________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST BID MODIFICATION" in the Notice
of Sale and Bidding Instructions.
ii
MATURITY SCHEDULE*
$36,885,000*
Certificates of Obligation, Series 2018
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS"
and " - POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
(1) CUSIP numbers have been assigned to the Certificates by CUSIP Global Services, managed by S&P Capital IQ on behalf of the American
Bankers Association, and are included solely for the convenience of the purchasers of the Certificates. Neither the City, the Financial Advisor
nor the Initial Purchaser shall be responsible for the selection or correctness of the CUSIP numbers set forth herein.
(2) The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2028, in whole or in part in
principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus accrued
interest to the date of redemption.
Due Interest Due Interest
Feb. 15 Principal*Rate Yield CUSIP (1)Feb. 15 Principal*Rate Yield CUSIP (1)
2019 840,000$ 2029 (2)1,835,000$
2020 1,310,000 2030 (2)1,910,000
2021 1,375,000 2031 (2)1,990,000
2022 1,445,000 2032 (2)2,065,000
2023 1,520,000 2033 (2)2,145,000
2024 1,590,000 2034 (2)2,215,000
2025 1,675,000 2035 (2)2,290,000
2026 1,700,000 2036 (2)2,370,000
2027 1,785,000 2037 (2)2,440,000
2028 1,850,000 (2)2038 (2)2,535,000
iii
For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended and in effect on the date hereof (the “Rule”),
this document constitutes a Preliminary Official Statement of the City with respect to the Certificates that has been deemed “final” by the City as of its date except
for the omission of no more than the information permitted by the Rule.
This Official Statement, which includes the cover page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy in
any jurisdiction to any person to whom it is unlawful to make such offer, solicitation or sale. No dealer, broker, salesperson or other person has been
authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other information
or representations must not be relied upon.
The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to
accuracy or completeness and is not to be construed as the promise or guarantee of the Financial Advisor. This Official Statement contains, in part, estimates
and matters of opinion which are not intended as statements of fact, and no representation is made as to the correctness of such estimates and opinions, or
that they will be realized. CUSIP numbers have been assigned to this issue by CUSIP Global Services, and are included solely for the convenience of the
owners of the Certificates. Neither the City, the Financial Advisor nor the Initial Purchaser shall be responsible for the selection or correctness of the CUSIP
numbers shown on the inside cover page.
The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of this Official Statement nor any
sale made hereunder will, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described.
In connection with this offering, the Initial Purchaser may over-allot or effect transactions which stabilize the market price of the issue at a level above that
which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time.
The Certificates are exempt from registration with the Securities and Exchange Commission and consequently have not been registered therewith. The
registration, qualification, or exemption of the Certificates in accordance with applicable securities law provisions of the jurisdiction in which these securities
have been registered or exempted should not be regarded as a recommendation thereof.
NEITHER THE CITY, ITS FINANCIAL ADVISOR NOR THE INITIAL PURCHASER MAKE ANY REPRESENTATION OR WARRANTY WITH RESPECT TO
THE INFORMATION CONTAINED IN THIS OFFICIAL STATEMENT REGARDING THE DEPOSITORY TRUST COMPANY (“DTC”) OR ITS BOOK-
ENTRY-ONLY SYSTEM.
Any information and expressions of opinion herein contained are subject to change without notice, and neither the delivery of this Official Statement nor any
sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described
herein since the date hereof.
The Initial Purchaser has provided the following sentence for inclusion in this Official Statement. The Initial Purchaser has reviewed the information in this
Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Initial Purchaser does not guarantee the accuracy or completeness of such information.
THIS OFFICIAL STATEMENT CONTAINS “FORWARD-LOOKING” STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE AND ACHIEVEMENTS TO BE DIFFERENT FROM THE FUTURE RESULTS,
PERFORMANCE AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED
THAT THE ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD-LOOKING STATEMENTS. See “OTHER
INFORMATION – FORWARD-LOOKING STATEMENTS DISCLAIMER” herein.
References to web site addresses presented herein are for informational purposes only and may be in the form of a hyperlink solely for the reader’s convenience.
Unless specified otherwise, such web sites and the information or links contained therein are not incorporated into, and are not part of, this final official
statement for purposes of, and as that term is defined in, SEC Rule 15c2-12.
iv
TABLE OF CONTENTS
MATURITY SCHEDULE* ............................................. 2
OFFICIAL STATEMENT SUMMARY ......................... 5
SELECTED FINANCIAL INFORMATION ............................. 7
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY 7
UTILITY SYSTEM CONDENSED STATEMENT OF
OPERATIONS ........................................................... 7
CITY OFFICIALS, STAFF AND CONSULTANTS ..... 8
ELECTED OFFICIALS ...................................................... 8
SELECTED ADMINISTRATIVE STAFF ................................ 8
CONSULTANTS AND ADVISORS ....................................... 8
INTRODUCTION ............................................................ 1
DESCRIPTION OF THE CITY ............................................. 1
PLAN OF FINANCING ................................................... 1
PURPOSE OF THE CERTIFICATES ..................................... 1
SOURCES AND USES OF PROCEEDS ................................. 1
THE CERTIFICATES ..................................................... 2
GENERAL DESCRIPTION ................................................. 2
AUTHORITY FOR ISSUANCE OF THE CERTIFICATES .......... 2
SECURITY AND SOURCE OF PAYMENT ............................ 2
TAX RATE LIMITATION .................................................. 2
OPTIONAL REDEMPTION ................................................ 2
MANDATORY SINKING FUND REDEMPTION .................... 2
NOTICE OF REDEMPTION ................................................ 3
BOOK-ENTRY-ONLY SYSTEM ........................................ 3
PAYING AGENT/REGISTRAR ........................................... 5
TRANSFER, EXCHANGE AND REGISTRATION ................... 5
RECORD DATE FOR INTEREST PAYMENT......................... 5
DEFEASANCE ................................................................. 5
REMEDIES OF HOLDERS OF CERTIFICATES ...................... 6
TAX INFORMATION ..................................................... 6
AD VALOREM TAX LAW ................................................ 6
CONSTITUTIONAL AMENDMENT ..................................... 7
EFFECTIVE TAX RATE AND ROLLBACK TAX RATE ......... 7
PROPERTY ASSESSMENT AND TAX PAYMENT ................. 8
PENALTIES AND INTEREST .............................................. 8
CITY APPLICATION OF PROPERTY TAX CODE ................. 8
TAX ABATEMENT POLICY .............................................. 9
ECONOMIC DEVELOPMENT............................................. 9
TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL
OBLIGATION DEBT ................................................ 11
TABLE 2 - TAXABLE ASSESSED VALUATIONS BY
CATEGORY ............................................................ 12
TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT
HISTORY ............................................................... 13
TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY13
TABLE 5 - TEN LARGEST TAXPAYERS ......................... 13
TABLE 6 - TAX ADEQUACY ........................................ 13
TABLE 7 - ESTIMATED OVERLAPPING DEBT ................ 14
DEBT INFORMATION ................................................. 15
TABLE 8 - PRO-FORMA AD VALOREM TAX DEBT
SERVICE REQUIREMENTS* ..................................... 15
TABLE 9 - INTEREST AND SINKING FUND BUDGET
PROJECTION .......................................................... 16
TABLE 10 – SELF-SUPPORTING DEBT* ........................ 16
TABLE 11 - AUTHORIZED BUT UNISSUED TAX BONDS . 17
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT17
OTHER OBLIGATIONS ................................................... 17
PENSION FUND ............................................................ 17
OTHER POST EMPLOYMENT BENEFITS .......................... 17
FINANCIAL INFORMATION ..................................... 20
TABLE 12 - GENERAL FUND REVENUES AND
EXPENDITURE HISTORY ........................................ 20
TABLE 13 - MUNICIPAL SALES TAX HISTORY ............. 21
FINANCIAL POLICIES ................................................... 21
THE COMBINED UTILITY SYSTEM ....................... 22
WATERWORKS SYSTEM ............................................... 22
WASTEWATER SYSTEM ............................................... 23
ELECTRIC SUPPLY SOURCE .......................................... 23
WIND WATT RATES .................................................... 24
TABLE 14 - HISTORICAL UTILITY USERS (UNITS SERVED)25
TABLE 15 - TEN LARGEST UTILITY CUSTOMERS .......... 25
TABLE 16 - CONDENSED STATEMENT OF OPERATIONS . 25
TABLE 17 – VALUE OF THE SYSTEM ............................. 26
TABLE 18 – CITY’S EQUITY IN THE SYSTEM ................. 26
TABLE 19 – UTILITY REVENUE BOND AND SYSTEM
SUPPORTED CERTIFICATE DEBT SERVICE .............. 27
INVESTMENTS ............................................................. 27
LEGAL INVESTMENTS .................................................. 27
INVESTMENT POLICIES ................................................ 28
ADDITIONAL PROVISIONS ............................................ 29
CITY’S INVESTMENT POLICY ....................................... 29
TABLE 20 - CURRENT INVESTMENTS ............................ 29
TAX MATTERS............................................................. 30
OPINION ...................................................................... 30
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF
ORIGINAL ISSUE DISCOUNT ................................... 30
COLLATERAL FEDERAL INCOME TAX CONSEQUENCES . 31
STATE, LOCAL AND FOREIGN TAXES ........................... 31
INFORMATION REPORTING AND BACKUP WITHHOLDING31
FUTURE AND PROPOSED LEGISLATION ......................... 32
CONTINUING DISCLOSURE OF INFORMATION 32
ANNUAL REPORTS ....................................................... 32
EVENT NOTICES .......................................................... 32
LIMITATIONS AND AMENDMENTS ................................ 33
COMPLIANCE WITH PRIOR UNDERTAKINGS .................. 33
OTHER INFORMATION ............................................. 33
RATINGS ..................................................................... 33
LITIGATION ................................................................. 33
REGISTRATION AND QUALIFICATION OF CERTIFICATES
FOR SALE .............................................................. 33
LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE
PUBLIC FUNDS IN TEXAS ....................................... 34
LEGAL OPINIONS ......................................................... 34
AUTHENTICITY OF FINANCIAL DATA AND OTHER
INFORMATION ....................................................... 34
FINANCIAL ADVISOR ................................................... 34
CERTIFICATION OF THE OFFICIAL STATEMENT AND NO-
LITIGATION CERTIFICATE ...................................... 34
FORWARD-LOOKING STATEMENTS .............................. 35
INITIAL PURCHASER .................................................... 35
MISCELLANEOUS ......................................................... 35
APPENDICES
GENERAL INFORMATION REGARDING THE CITY ................................. A
EXCERPTS FROM THE ANNUAL FINANCIAL REPORT ........................... B
FORMS OF OPINIONS OF BOND COUNSEL ............................................ C The cover page hereof, this page, the appendices included herein and any
addenda, supplement or amendment hereto, are part of the Official
Statement.
v
OFFICIAL STATEMENT SUMMARY
This summary is subject in all respects to the more complete information and definitions contained or incorporated in this Official Statement.
The offering of the Certificates to potential investors is made only by means of this entire Official Statement. No person is authorized to
detach this summary from this Official Statement or to otherwise use it without the entire Official Statement.
THE CITY ............................. The City of College Station, Texas (the “City”) is a political subdivision and a home-rule city of the State,
located in Brazos County, Texas. The City covers approximately 51.6 square miles (see “INTRODUCTION
- DESCRIPTION OF THE CITY”).
THE CERTIFICATES ............. The Certificates are issued as $36,885,000* City of College Station, Texas Certificates of Obligation, Series
2018. The Certificates are issued as serial certificates maturing on February 15 in each of the years 2019-
2038, inclusive (see “THE CERTIFICATES - GENERAL DESCRIPTION”). If two or more serial maturities of
the Certificates are grouped into a single maturity (the “Term Certificates”) by the Initial Purchaser, such
Term Certificates will be subject to mandatory sinking fund redemption in accordance with applicable
provisions of the Ordinance.
PAYMENT OF INTEREST ...... Interest on the Certificates will accrue from the date of delivery, and will be payable February 15 and August
15 of each year commencing February 15, 2019 until maturity or prior redemption and will be calculated on
the basis of a 360-day year consisting of twelve 30-day months (see “THE CERTIFICATES - GENERAL
DESCRIPTION”).
AUTHORITY FOR ISSUANCE
OF THE CERTIFICATES ....... The Certificates are issued pursuant to the general laws of the State, particularly Chapter 1371, Texas
Government Code and Subchapter C of Chapter 271, Texas Local Government Code, as amended; and an
ordinance passed by the City Council of the City. In the ordinance authorizing the issuance of the Certificates,
the City Council delegated pricing of the Certificates to a “Pricing Officer” who will approve the terms of
sale of the Certificates (see “THE CERTIFICATES - AUTHORITY FOR ISSUANCE OF THE CERTIFICATES”).
SECURITY FOR THE
CERTIFICATES ..................... The Certificates constitute direct obligations of the City, secured by and payable from a combination of (i) the
levy and collection of an annual direct and continuing ad valorem tax, within the limits prescribed by law, on all
taxable property located within the City, and (ii) a subordinate lien on and pledge of $1,000 of the surplus
revenues derived from the City’s combined utility system (see “THE CERTIFICATES - SECURITY AND SOURCE
OF PAYMENT”). Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum
ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. The Home-Rule Charter
of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable Assessed
Valuation.
REDEMPTION ....................... The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February
15, 2028, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15,
2027, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption (see “THE
CERTIFICATES – OPTIONAL REDEMPTION”). Additionally, the Certificates may be subject to mandatory
redemption in the event the Initial Purchaser elects to aggregate one or more maturities as a term Certificate.
(See “THE CERTIFICATES – MANDATORY SINKING FUND REDEMPTION”).
TAX EXEMPTION ................... In the opinion of Bond Counsel, the interest on the Certificates will be excludable from gross income for federal
income tax purposes under existing law. See “TAX MATTERS” for a discussion of the opinion of Bond Counsel
and Exhibit C.
USE OF CERTIFICATE
PROCEEDS .......................... Proceeds from the sale of the Certificates will be used for (i) constructing and improving streets and roads
including related drainage, landscaping, lighting, pedestrian improvements and signage related thereto; (ii)
designing, constructing, equipping and installing park and recreation equipment and improvements including
new and existing facilities, park infrastructure improvements, upgrades and rehabilitation; (iii) purchasing and
installing technology improvements including video surveillance; (iv) purchasing land for a new Fire Station;
(v) designing and constructing a new City Hall; (vi) constructing improvements and extensions to the City's
combined waterworks, sewer and electric systems including distribution, transmission, system lines, wells,
plant improvements, and acquisition of interests in land; and (vii) the payment of fiscal, engineering and legal
fees incurred in connection therewith (see “PLAN OF FINANCING – SOURCES AND USE OF PROCEEDS”).
RATINGS ............................. The Certificates and presently outstanding tax supported debt of the City are rated “__” by Moody's Investors
Service, Inc. (“Moody's”) and “__” by Standard & Poor's Ratings Services, a Standard & Poor’s Financial
Services LLC business (“S&P”), without regard to credit enhancement (see “OTHER INFORMATION –
RATINGS”).
__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " -
POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
vi
BOOK-ENTRY-ONLY
SYSTEM .............................. The definitive Certificates will be initially registered and delivered only to Cede & Co., the nominee of The
Depository Trust Company (“DTC”) pursuant to the Book-Entry-Only System described herein. Beneficial
ownership of the Certificates may be acquired in denominations of $5,000 or integral multiples thereof. No
physical delivery of the Certificates will be made to the beneficial owners thereof. Principal of and interest
on the Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution
of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners
of the Certificates (see “THE CERTIFICATES - BOOK-ENTRY-ONLY SYSTEM”).
PAYMENT RECORD .............. Other than a late payment on the City’s Certificates of Obligation, Series 2002 that occurred in 2003, the City
has never defaulted in payment of its general obligation tax debt.
[Remainder of Page Intentionally Left Blank]
vii
SELECTED FINANCIAL INFORMATION
_______________
(1) Source: The City.
(2) As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3) Payable from ad valorem taxes. Does not include self-supporting debt. See “TABLE 10 – SELF-SUPPORTING DEBT” for detail on the City’s
self supported tax debt.
(4) Certified taxable assessed valuation for tax year 2017 as reported by the Brazos Central Appraisal District. This amount is subject to change
during ensuing year.
(5) Projected, includes the Certificates.
(6) Collections as of February 28, 2018. A portion of the City’s taxpayer base has elected to provide split payments to the City which will be due
in part on June 30, 2018.
GENERAL FUND CONSOLIDATED STATEMENT SUMMARY
_______________
(1) The City’s financial policies require a General Fund balance of 15% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus may be expended in future years for one time expenditures such as capital items and short
term projects.
UTILITY SYSTEM CONDENSED STATEMENT OF OPERATIONS
Ratio Tax
Fiscal Per Capita Per Capita Debt to
Year Estimated Taxable Taxable Net Net Taxable
Ended City Assessed Assessed Ad Valorem Ad Valorem Assessed
9/30 Population(1) Valuation(2)Valuation Tax Debt (3)Tax Debt Valuation
2013 99,918 5,944,312,987$ 59,492 $ 96,750,000$ 968 $ 1.63%100.30%
2014 102,117 6,231,119,010 61,019 88,100,000 863 1.41%100.15%
2015 106,465 6,654,600,834 62,505 101,630,000 955 1.53%99.17%
2016 109,859 7,162,738,280 65,199 118,350,000 1,077 1.65%100.03%
2017 109,936 7,623,964,171 69,349 169,595,000 1,543 2.22%100.31%
2018 117,841 8,902,090,555 (4)75,543 175,120,000 (5)1,486 (5)1.97%(5)88.96%(6)
Collection
Total
Percent
2017 2016 2015 2014 2013
Beginning Balance 19,133,202 $ 22,423,064 $ 20,244,248 $ 15,925,531 $ 16,492,693 $
Total Revenue 64,795,371 60,087,950 58,378,174 50,325,825 48,229,096
Total Expenditures 76,897,859 77,508,715 68,827,167 61,303,335 59,483,559
Other Financing Sources 15,483,809 14,130,903 12,627,809 15,296,227 10,687,301
Ending Balance(1)22,514,523 $ 19,133,202 $ 22,423,064 $ 20,244,248 $ 15,925,531 $
For Fiscal Year Ended September 30,
2017 2016 2015 2014 2013
Revenues:
Electric 99,179,570 $ 98,904,688 $ 98,763,293 $ 95,677,765 $ 92,892,541 $
Water and Wastewater 31,333,922 29,484,851 28,732,968 27,550,262 29,018,108
Interest 697,655 346,312 180,423 116,433 170,062
Other 3,179,821 3,636,420 3,546,138 2,890,061 3,670,710
Total Revenues 134,390,968 $ 132,372,271 $ 131,222,822 $ 126,234,521 $ 125,751,421 $
Expenses:
Total Expenses 78,766,516 $ 76,771,094 $ 82,079,813 $ 100,235,329 $ 90,519,871 $
Net Available for Debt Service 55,624,452 $ 55,601,177 $ 49,143,009 $ 25,999,192 $ 35,231,550 $
Water (Units Served)43,199 41,709 41,540 40,768 40,767
Wastewater (Units Served)42,840 40,866 40,806 39,128 38,608
Electric (Units Served)41,169 40,141 43,471 38,198 38,456
For Fiscal Year Ended September 30,
viii
CITY OFFICIALS, STAFF AND CONSULTANTS
ELECTED OFFICIALS
_________________
(1) Elected November 2016 - Former City of College Station Council Member 2011-2016.
(2) Prior Council Member for 4 years prior to his current term.
SELECTED ADMINISTRATIVE STAFF
_______________
(1) Named Interim City Manager in April 2018. Assistant City Manager since June 2014; previously served as Chief of Police.
(2) Assistant City Manager and Chief Financial Officer since January 2014; previously served as Executive Director of Business Services and
Chief Financial Officer .
(3) Named Interim Assistant City Manager in February 2018. Previously served as Director of Water Services.
(4) Appointed City Secretary in July 2017. Previously served as Deputy City Secretary since 2008.
(5) Named Interim Director of Water Services February 2018. Previously served as Assistant Director of Water Services
(6) Director of Electric Utility since December 2012; previously served as Assistant Director of Electric Utility.
(7) New hire as Director of Information Technology in March 2018.
(8) Director of Parks and Recreation since May 2011; previously served as Assistant Director of Parks and Recreation.
(9) Director of Development Services since March 2014; previously Assistant Director of Development Services.
(10) Director of Public Works and CIP since January 2014; previously Assistant Director of Public Works and CIP.
CONSULTANTS AND ADVISORS
Auditors ................................................................................................................................................. Ingram, Wallis & Company
Bryan, Texas
Bond Counsel ............................................................................................................................. McCall, Parkhurst & Horton L.L.P.
Dallas, Texas
Financial Advisor.............................................................................................................................................. Hilltop Securities Inc.
Houston, Texas
Term
Name Position Expiration Occupation
Karl P. Mooney Mayor 1.5 Year (1)11/19 Texas A&M University Director
Bob Brick Council Member 0.5 Year 11/20 Research Scientist
Jerome Rektorik Council Member 1.5 Year 11/19 Retired
Linda Harvell Council Member 1.5 Year 11/20 Business Owner
Barry Moore Council Member 1.5 Year 11/18 Commercial Real Estate Broker
John Nichols Council Member 0.5 Year (2)11/20 Retired professor
James Benham Council Member 5.5 Year 11/18 Business Owner
Length of
Service
Name Position
Jeff Capps Interim City Manager 25.0 (1)
Jeff Kersten Assistant City Manager 27.0 (2)
David Coleman Interim Assistant City Manager 13.0 (3)
Carla Robinson City Attorney 16.5
Tanya D. Smith City Secretary 10.0 (4)
Ty Elliott Internal Auditor 10.5
Mary Ellen Leonard Director of Finance 2.0
Alan Gibbs Interim Director of Water Services 14.0 (5)
Timothy Crabb Director of Electric Utility 11.5 (6)
Sindhu Menon Director of Information Technology < 1 (7)
David Schmitz Director of Parks and Recreation 10.0 (8)
Lance Simms Director of Development Services 22.0 (9)
Donald Harmon Director of Public Works and CIP 18.5 (10)
Alison Pond Director of Human Resources 9.5
Jay Socol Public Communications Director 8.5
Length of Service
to the City
(in Years)
ix
x
For additional information regarding the City, please contact:
Jeff Kersten
Assistant City Manager
City of College Station
1101 Texas Avenue
College Station, Texas 77840
(979) 764-3555 Phone
or
Joe Morrow
Hilltop Securities Inc.
700 Milam Street, Suite 500
Houston, Texas 77002
(713) 651-9850 Phone
[Remainder of Page Intentionally Left Blank]
1
PRELIMINARY OFFICIAL STATEMENT
RELATING TO
CITY OF COLLEGE STATION, TEXAS
(a Home-Rule City located in Brazos County, Texas)
$36,885,000*
CERTIFICATES OF OBLIGATION
SERIES 2018
INTRODUCTION
This Official Statement, which includes the cover pages and Appendices hereto, provides certain information regarding the issuance of the
$36,885,000* City of College Station, Texas Certificates of Obligation, Series 2018 (the “Certificates”). Capitalized terms used in this Official
Statement, except as otherwise indicated herein, have the same meanings assigned to such terms in the ordinance authorizing the issuance of the
Certificates (the “Ordinance”). In the Ordinance, the City Council delegated to certain officers known as “Pricing Officers” of the City the
authority to finalize the pricing of the Certificates.
There follows in this Official Statement descriptions of the Certificates and certain information regarding the City and its finances. All
descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Copies
of such documents may be obtained from the City's Financial Advisor, Hilltop Securities Inc., Houston, Texas.
DESCRIPTION OF THE CITY
The City is a political subdivision and municipal corporation of the State of Texas (the “State”), duly organized and existing under the laws
of the State, including the City's Home Rule Charter. The City was incorporated in October 1938, and first adopted its Home-Rule Charter
in October 1938, which was last amended in November 2012. The City operates under a Council/City Manager form of government with a
City Council comprised of the Mayor and six Council members. Some of the services that the City provides are: public safety (police and
fire protection), highways and streets, electric, water and sanitary sewer utilities, health and social services, culture-recreation, public
transportation, public improvements, planning and zoning, and general administrative services. The 2010 Census population was 93,857 and
the current estimated population of the City is 117,841. The City covers approximately 51.6 square miles.
PLAN OF FINANCING
PURPOSE OF THE CERTIFICATES
Proceeds from the sale of the Certificates will be used for (i) constructing and improving streets and roads including related drainage,
landscaping, lighting, pedestrian improvements and signage related thereto; (ii) designing, constructing, equipping and installing park and
recreation equipment and improvements including new and existing facilities, park infrastructure improvements, upgrades and rehabilitation;
(iii) purchasing and installing technology improvements including video surveillance; (iv) purchasing land for a new Fire Station; (v)
designing and constructing a new City Hall; (vi) constructing improvements and extensions to the City's combined waterworks, sewer and
electric systems including distribution, transmission, system lines, wells, plant improvements, and acquisition of interests in land; and (vii)
the payment of fiscal, engineering and legal fees incurred in connection therewith (see “PLAN OF FINANCING – SOURCES AND USE OF
PROCEEDS”).
SOURCES AND USES OF PROCEEDS
The proceeds from the sale of the Certificates will be applied approximately as follows:
Sources of Funds
Par Amount
Original Issue Premium
Total Uses of Funds -$
Use of Funds
Deposit to Project Fund
Underwriters' Discount
Costs of Issuance
Total Uses of Funds -$
__________
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " -
POST BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
2
THE CERTIFICATES
GENERAL DESCRIPTION
The Certificates will bear interest from the date of delivery to the Initial Purchaser, and mature on February 15 in each of the years and in the
amounts shown on the inside cover page hereof. Interest on the Certificates will be calculated on the basis of a 360-day year consisting of
twelve 30-day months. Interest on the Certificates will accrue from the date of delivery, and will be payable February 15 and August 15 of
each year commencing February 15, 2019 until maturity or prior redemption and will be calculated on the basis of a 360-day year consisting
of twelve 30-day months. The definitive Certificates will be issued only in fully registered form in any integral multiple of $5,000 for any
one maturity and will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company, New York,
New York (“DTC”) pursuant to the Book-Entry-Only System described herein. No physical delivery of the Certificates will be made to the
beneficial owners thereof. Principal of and interest on the Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which
will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the
Certificates (see “BOOK-ENTRY-ONLY SYSTEM”).
AUTHORITY FOR ISSUANCE OF THE CERTIFICATES
The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Chapter 1371, Texas
Government Code and Subchapter C of Chapter 271, Texas Local Government Code, as amended; and the Certificate Ordinance.
SECURITY AND SOURCE OF PAYMENT
The Certificates are secured by and payable from an annual continuing ad valorem taxes levied against all taxable property in the City, within
the legal limits prescribed by law and payable from a subordinate lien on and pledge of $1,000 of the surplus revenues of the City’s combined
utility system.
TAX RATE LIMITATION
All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax
sufficient to provide for the payment of principal of and interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section
5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation
for all City purposes. The Home-Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable
Assessed Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate
for all debt service for obligations payable from annual ad valorem property taxes, as calculated at the time of issuance.
OPTIONAL REDEMPTION
The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2028, in whole or in part
in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2027, or any date thereafter, at the par value thereof plus
accrued interest to the date of redemption. If less than all of the Certificates are to be redeemed, the City shall determine the Certificates, or
portions thereof, within such maturity to be redeemed. If Certificates (or any portion of the principal sum thereof) shall have been called for
redemption and notice of such redemption shall have been given, such Certificates (or the principal amount thereof to be redeemed) shall
become due and payable on such redemption date and interest thereon shall cease to accrue from and after the redemption date, provided
funds for the payment of the redemption price and accrued interest thereon are held by the Paying Agent/Registrar on the redemption date.
MANDATORY SINKING FUND REDEMPTION
In addition to the foregoing optional redemption provision, if principal amounts designated in the serial maturity schedule shown on the inside
cover page hereof are combined to create term certificates (the “Term Certificates”), each such Term Certificate shall be subject to mandatory
sinking fund redemption commencing on February 15 of the first year which has been combined to form such Term Certificate and continuing
on February 15 in each year thereafter until the stated maturity date of that Term Certificate, and the amount required to be redeemed in any year
shall be equal to the principal amount for such year set forth in the Maturity Schedule herein. Term Certificates to be redeemed in any year by
mandatory sinking fund redemption shall be redeemed at par and shall be selected by lot from the Term Certificates then subject to redemption.
The City, at its option, may credit against any mandatory sinking fund redemption requirement Term Certificates of the maturity then subject to
redemption which at least 45 days prior to the mandatory sinking fund redemption date have been purchased and canceled by the City or have
been redeemed and not theretofore applied as a credit against any mandatory sinking fund redemption requirement.
3
NOTICE OF REDEMPTION
Not less than 30 days prior to a redemption date for the Certificates, the City shall cause a notice of redemption to be sent by United States
mail, first class, postage prepaid, to the registered owners of the Certificates to be redeemed, in whole or in part, at the address of the registered
owner appearing on the registration books of the Paying Agent/Registrar. ANY NOTICE SO MAILED SHALL BE CONCLUSIVELY
PRESUMED TO HAVE BEEN DULY GIVEN, WHETHER OR NOT THE REGISTERED OWNER RECEIVES SUCH NOTICE.
NOTICE HAVING BEEN SO GIVEN, THE CERTIFICATES CALLED FOR REDEMPTION SHALL BECOME DUE AND PAYABLE
ON THE SPECIFIED REDEMPTION DATE, AND NOTWITHSTANDING THAT ANY CERTIFICATE OR PORTION THEREOF HAS
NOT BEEN SURRENDERED FOR PAYMENT, INTEREST ON SUCH CERTIFICATE OR PORTION THEREOF SHALL CEASE TO
ACCRUE.
With respect to any optional redemption of the Certificates, unless certain prerequisites to such redemption required by the Ordinance have
been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Certificates to be redeemed shall have been
received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption may, at
the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar
on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of
redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and
effect, the City shall not redeem such Certificates and the Paying Agent/Registrar shall give notice, in the manner in which the notice of
redemption was given, to the effect that the Certificates have not been redeemed.
BOOK-ENTRY-ONLY SYSTEM
This section describes how ownership of the Certificates is to be transferred and how the principal of and interest on the Certificates are to
be paid to and credited by the DTC while the Certificates are registered in its nominee name. The information in this section concerning
DTC and the Book-Entry-Only System has been provided by DTC for use in disclosure documents such as this Official Statement. The City,
the Financial Advisor and the Initial Purchaser believe the source of such information to be reliable, but take no responsibility for the
accuracy or completeness thereof.
The City, the Financial Advisor and the Initial Purchaser cannot and do not give any assurance that (1) DTC will distribute payments of debt
service on the Certificates, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt service
payments paid to DTC or its nominee (as the registered owner of the Certificates), or redemption or other notices, to the Beneficial Owners,
or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this Official Statement. The current rules
applicable to DTC are on file with the Securities and Exchange Commission, and the current procedures of DTC to be followed in dealing
with DTC Participants are on file with DTC.
DTC will act as securities depository for the Certificates. The Certificates will be issued as fully-registered securities in the name of Cede &
Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
certificate for each maturity will be issued for the Certificates, in the aggregate principal amount of such maturity, and will be deposited with
DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within
the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of
the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity,
corporate and municipal debt issues, and money market instrument from over 100 countries that DTC’s participants (“Direct Participants”)
deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in
deposited securities through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates
the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust
& Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation, and Fixed Income
Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the
DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect
Participants”). Direct Participants and Indirect Participants are referred to collectively herein as “Participants”. DTC is rated AA+ by
Standard and Poor’s. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com.
4
Purchases of Certificates under the DTC system must be made by or through Direct Participants, which will receive a credit for such purchases
on DTC's records. The ownership interest of each actual purchaser of each Certificate (“Beneficial Owner”) is in turn to be recorded on the
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however,
expected to receive written confirmations providing details of the transaction as well as periodic statements of their holdings, from the
Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Certificates are to be
accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in the Certificates, except in the event that use of the book-entry system described herein
is discontinued.
To facilitate subsequent transfers, all Certificates deposited by Direct Participants with DTC are registered in the name of DTC’s partnership
nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Certificates with
DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC
has no knowledge of the actual Beneficial Owners of the Certificates; DTC’s records reflect only the identity of the Direct Participants to
whose accounts such Certificates are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for
keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct
Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of Certificates may wish to take certain steps to augment
the transmission to them of notices of significant events with respect to the Certificates, such as redemptions, tenders, defaults, and proposed
amendments to the Certificate documents. For example, Beneficial Owners of Certificates may wish to ascertain that the nominee holding
the Certificates for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may
wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Certificates within a maturity in the series are being redeemed, DTC’s practice
is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Certificates unless authorized by a Direct
Participant in accordance with DTC’s Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible
after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts
Certificates are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Payments on the Certificates will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of
DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
City and the Paying Agent/Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for
the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC nor
its nominee, the Paying Agent/Registrar, or the City, subject to any statutory or regulatory requirements as may be in effect from time to
time. Payment of redemption proceeds, principal and interest payments to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of the City and the Paying Agent/Registrar. Disbursement of such payments to Direct
Participants will be the responsibility of DTC, and reimbursement of such payments to the Beneficial Owners will be the responsibility of
Participants.
DTC may discontinue providing its services as depository with respect to the Certificates at any time by giving reasonable notice to the City
and the Paying Agent/Registrar. Under such circumstances, in the event that a successor depository is not obtained, Certificates are required
to be printed and delivered.
The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event,
Certificates will be printed and delivered.
Use of Certain Terms in Other Sections of this Official Statement. In reading this Official Statement it should be understood that while the
Certificates are in the Book-Entry-Only System, references in other sections of this Official Statement to registered owners should be read to
include the person for which the Participant acquires an interest in the Certificates, but (i) all rights of ownership must be exercised through DTC
and the Book-Entry-Only System, and (ii) except as described above, notices that are to be given to registered owners under the Ordinance will
be given only to DTC.
Information concerning DTC and the Book-Entry System has been obtained from DTC and is not guaranteed as to accuracy or completeness by,
and is not to be construed as a representation by the City or the Initial Purchaser.
5
PAYING AGENT/REGISTRAR
The initial Paying Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas. In the Ordinance, the City retains the
right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Certificates
are duly paid and any successor Paying Agent/Registrar must be a bank, trust company, financial institution, or other entity duly qualified and
legally authorized to serve as and perform the duties and services of Paying Agent/Registrar for the Certificates. Upon any change in the Paying
Agent/Registrar for the Certificates, the City will promptly cause a written notice thereof to be sent to each registered owner of the Certificates
by United States mail, first class, postage prepaid, which notice will also include the address of the new Paying Agent/Registrar.
TRANSFER, EXCHANGE AND REGISTRATION
In the event the Book-Entry-Only System should be discontinued, the Certificates may be transferred and exchanged on the registration books
of the Paying Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar and such transfer or exchange will be
without expense or service charge to the registered owner, except for any tax or other governmental charges required to be paid with respect to
such registration, exchange and transfer. Certificates may be assigned by the execution of an assignment form on the respective Certificates or
by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. New Certificates will be delivered by the Paying
Agent/Registrar, in lieu of the Certificates being transferred or exchanged, at the corporate trust office of the Paying Agent/Registrar, or sent by
United States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent possible, new Certificates issued in an
exchange or transfer of Certificates will be delivered to the registered owner or assignee of the registered owner in not more than three business
days after the receipt of the Certificates to be canceled, and the written instrument of transfer or request for exchange duly executed by the
registered owner or his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. New Certificates registered and delivered in
an exchange or transfer will be in any integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as the Certificates
surrendered for exchange or transfer. See “BOOK-ENTRY-ONLY SYSTEM” herein for a description of the system to be utilized initially in regard
to ownership and transferability of the Certificates. Neither the City nor the Paying Agent/Registrar will be required to transfer or exchange any
Certificate called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided, however, such limitation of
transfer will not be applicable to an exchange by the registered owner of the uncalled balance of a Certificate.
RECORD DATE FOR INTEREST PAYMENT
The record date (“Record Date”) for determining the person to whom the interest is payable on the Certificates on any interest payment date
means the close of business on the last business day of the preceding month.
In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a
“Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received
from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (a “Special Payment Date,” which
will be 15 days after the Special Record Date) will be sent at least five days prior to the Special Record Date by United States mail, first class,
postage prepaid, to the address of each Holder of a Certificate appearing on the registration books of the Paying Agent/Registrar at the close of
business on the day next preceding the date of mailing of such notice.
DEFEASANCE
The Ordinance provides for the defeasance of the Certificates when the payment of the principal of and premium, if any, on the Certificates, plus
interest thereon to the due date thereof (whether such due date be by reason of maturity, redemption, or otherwise), is provided by irrevocably
depositing with a paying agency, in trust (1) money sufficient to make such payment or (2) Defeasance Securities, certified by an independent
public accounting firm of national reputation to mature as to principal and interest in such amounts and at such times to insure the availability,
without reinvestment, of sufficient money to make such payment, and all necessary and proper fees, compensation and expenses of the paying
agent for the Certificates. The Ordinance provides that “Defeasance Securities” means (a) direct, noncallable obligations of the United States of
America, including obligations that are unconditionally guaranteed by the United States of America, (b) noncallable obligations of an agency or
instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or
instrumentality and that are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent,
(c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and
that rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (d) any securities
and obligations now or hereafter authorized by Texas law that are eligible to refund, retire or otherwise discharge obligations such as the
Certificates. In the Ordinance, the Pricing Officer is authorized to restrict such eligible securities and obligations as deemed appropriate to
accommodate requests from potential investors. The City has additionally reserved the right, subject to satisfying the requirement of (1) and
(2) above, to substitute other Defeasance Securities for the Defeasance Securities originally deposited, to reinvestment the uninvested moneys
on deposit for such defeasance and to withdraw for the benefit of the City moneys in excess of the amount required for such defeasance.
6
REMEDIES OF HOLDERS OF CERTIFICATES
The Ordinance establishes specific events of default with respect to the Certificates. If the City defaults in the payment of the principal of or
interest on the Certificates when due or the City defaults in the observance or performance of any of the covenants, conditions, or obligations
of the City, the failure to perform which materially, adversely affects the rights of the owners of the Certificates including but not limited to,
their prospect or ability to be repaid in accordance with the Ordinance, and the continuation thereof for a period of 60 days after notice of
such default is given by any owner to the City, the Ordinance provides that any registered owner is entitled to seek a writ of mandamus from
a court of proper jurisdiction requiring the City to make such payment or observe and perform such covenants, obligations, or conditions.
The issuance of a writ of mandamus may be sought if there is no other available remedy at law to compel performance of the Certificates or
the Ordinance and the City's obligations are not uncertain or disputed. The issuance of a writ of mandamus is controlled by equitable
principles, so rests with the discretion of the court, but may not be arbitrarily refused. There is no acceleration of maturity of the Certificates
in the event of default and, consequently, the remedy of mandamus may have to be relied upon from year to year. The Ordinance does not
provide for the appointment of a trustee to represent the interest of the holders of the Certificates upon any failure of the City to perform in
accordance with the terms of the Ordinance, or upon any other condition and accordingly all legal actions to enforce such remedies would
have to undertaken of the initiative of, and be financed by, the registered owners of the Certificates. On June 30, 2006, the Texas Supreme
Court ruled in Tooke v. City of Mexia, 197 S.W.3d 325 (Tex. 2006) that a waiver of sovereign immunity in a contractual dispute must be
provided for by statute in “clear and unambiguous” language. Because it is unclear whether the Texas legislature has effectively waived the
City’s sovereign immunity from a suit for money damages, registered owners of the Certificates may not be able to bring such a suit against
City for breach of the Certificates of covenants contained in either Ordinance. Even if a judgment against the City could be obtained, it could
not be enforced by direct levy and execution against the City’s property. Further, the registered owners cannot themselves foreclose on
property within the City or sell property within the City to enforce the tax lien on taxable property to pay the principal of and interest on the
Certificates. Chapter 1371 of the Texas Government Code, which pertains to the issuance of public securities by issuers such as the City,
permits the City to waive sovereign immunity in the proceedings authorizing its obligations. The City has relied upon Chapter 1371 in
connection with the issuance of the Certificates, but the City has not waived sovereign immunity.
The City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code (“Chapter 9”). Although Chapter 9 provides
for the recognition of a security interest represented by a specifically pledged source of revenues, the pledge of ad valorem taxes in support
of a general obligation of a bankrupt entity is not specifically recognized as a security interest under Chapter 9. Chapter 9 also includes an
automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by creditors or
registered owners of the Certificates of an entity which has sought protection under Chapter 9. Therefore, should the City avail itself of
Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that
the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary
powers of a Bankruptcy Court in administering any proceeding brought before it. The opinion of Bond Counsel will note that all opinions
relative to the enforceability of the Certificates are qualified with respect to the customary rights of debtors relative to their creditors,
principles of sovereign immunity and by general principles of equity which permit the exercise of judicial discretion.
TAX INFORMATION
AD VALOREM TAX LAW
The appraisal of property within the City is the responsibility of the Brazos Central Appraisal District (the “Appraisal District”). Excluding
agricultural and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under Title 1,
Texas Tax Code (referred to herein as the “Property Tax Code”) to appraise all property within the Appraisal District on the basis of 100%
of its market value and is prohibited from applying any assessment ratios. In determining the market value of property, different methods of
appraisal may be used, including the cost method of appraisal, the income method of appraisal and the market data comparison method of
appraisal, and the method considered most appropriate by the chief appraiser is to be used. State law further limits the appraised value of a
residence homestead for a tax year to an amount not to exceed the lesser of (1) the property’s market value in the most recent tax year in
which the market value was determined by the Appraisal District or (2) the sum of (a) 10% of the property’s appraised value for the preceding
tax year, (b) the appraised value of the property for the preceding tax year and (c) the market value of all new improvements to the property.
The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting of three members
appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of property within the
Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to challenge the
determination of appraised value of property within the City by petition filed with the Appraisal Review Board.
Reference is made to the Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted
from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and limitations applicable to the
levy and collection of ad valorem taxes.
Article VIII of the State Constitution (“Article VIII”) and State law provide for certain exemptions from property taxes, the valuation of
agricultural and open-space lands at productivity value, and the exemption of certain personal property from ad valorem taxation.
Under Section 1-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) An exemption of
not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older; (2) An exemption to the disabled
from all ad valorem taxes thereafter levied by the political subdivision; and (3) An exemption of up to 20% of the market value of residence
7
homesteads. The minimum exemption under this provision is $5,000. In addition State law mandates a complete exemption for the residential
homestead of disabled veterans determined to be 100% disabled by the U.S. Department of Veterans Affairs. Further, the surviving spouse
of a deceased veteran who had received a disability rating of 100% is entitled to receive a residential homestead exemption equal to the
exemption received by the deceased spouse until such surviving spouse remarries.
In the case of residence homestead exemptions granted under Section 1-b, Article VIII, ad valorem taxes may continue to be levied against
the value of homesteads exempted where ad valorem taxes have previously been pledged for the payment of debt if cessation of the levy
would impair the obligation of the contract by which the debt was created.
State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or children
of a deceased veteran who died while on active duty in the armed forces; the exemption applies to either real or personal property with the
amount of assessed valuation exempted ranging from $5,000 to a maximum of $12,000.
Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open-space land (Section 1-d-1), including open-space land
devoted to farm or ranch purposes or open-space land devoted to timber production, may elect to have such property appraised for property
taxation on the basis of its productive capacity. The same land may not be qualified under both Section 1-d and 1-d-1. Article VIII, Section 1-n
of the Texas Constitution provides for an exemption from taxation for “goods-in-transit,” which are defined as (i) personal property acquired or
imported into the State and transported to another location inside or outside the State, (ii) stored under a contract for bailment in public warehouses
not in any way owned or controlled by the owner of the stored goods, and (iii) transported to another location inside or outside the State within
175 days of the date the property was acquired or imported into the State. The exemption excludes oil, natural gas, petroleum products, aircraft
and special inventory, including motor vehicle, vessel and out-board motor, heavy equipment and manufactured housing inventory. On December
8, 2011, the Council passed an ordinance approving taxation on certain goods-in-transit. After taking such official action, the goods-in-transit
remain subject to taxation by the taxing unit until the governing body of the taxing unit rescinds or repeals its previous action to tax goods-in-
transit. If, however, a taxing unit took official action prior to October 1, 2011 to tax goods-in-transit and pledged the taxes imposed on the goods-
in-transit for the payment of a debt, taxes may continue to be imposed on goods-in-transit until the debt is discharged, if cessation of the imposition
of the tax would impair the obligation of the contract by which the debt was created.
Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a
political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation.
Article VIII, Section 1-j, provides for “freeport property” to be exempted from ad valorem taxation. Freeport property is defined as goods
detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. Decisions to continue
to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal.
The City and the other taxing bodies within its territory may agree to jointly create tax increment financing zones within the City, under
which the tax values on property in the zone are “frozen” at the value of the property at the time of creation of the zone. The City also may
enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner agrees to construct certain
improvements on its property. The City in turn agrees not to levy a tax on all or part of the increased value attributable to the improvements
until the expiration of the agreement. The abatement agreement could last for a period of up to 10 years. See “- TAX ABATEMENT POLICY”
for a discussion of the City’s economic development guidelines and criteria.
CONSTITUTIONAL AMENDMENT
In a statewide election held on September 13, 2003, voters approved an amendment to Section 1-b, Article VIII of the Texas Constitution,
that authorized a county, city, town or junior college district to establish an ad valorem tax freeze on residence homesteads of the disabled
and of the elderly and their spouses. City Council did not take action to establish the tax limitation. Voters within the City were authorized
to submit a petition signed by five percent of the registered voters of the City requiring the City Council to call an election to determine by
majority vote whether to establish the tax limitation.
A petition was submitted and an election was held on May 10, 2008. The voters of College Station voted to approve the ad valorem tax
freeze. The City can provide no assurances of the impact, if any, implementation of this ad valorem tax freeze may have on the City’s
finances.
Under the tax freeze, the total amount of ad valorem taxes imposed by the City on a homestead that receives the exemption may not be
increased while it remains the residence homestead of that person or that person's spouse who is disabled or sixty-five years of age or older,
except to the extent the value of the homestead is increased by improvements other than repairs. If a disabled or elderly person dies in a year
in which the person received a residence homestead exemption, the total amount of ad valorem taxes imposed on the homestead by the taxing
unit may not be increased while it remains the residence homestead of that person's surviving spouse if the spouse is fifty-five years of age
or older at the time of the person's death. In addition, the Texas Legislature by general law may provide for the transfer of all or a proportionate
amount of the tax limitation applicable to a person's homestead to be transferred to the new homestead of such person if the person moves to
a different residence within the taxing unit. Once established, the governing body of the taxing unit may not repeal or rescind the tax limitation.
EFFECTIVE TAX RATE AND ROLLBACK TAX RATE
8
By the later of September 28th or 60 days after the certified appraisal roll is delivered to the City, the City Council adopts a tax rate per $100
taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures,
and (2) a rate for debt service.
Under the Property Tax Code, the City must annually calculate and publicize its “effective tax rate” and “rollback tax rate”. A tax rate cannot
be adopted by the City Council that exceeds the lower of the rollback tax rate or the effective tax rate until two public hearings are held on
the proposed tax rate following a notice of such public hearing (including the requirement that notice be posted on the City’s website if City
owns, operates or controls an internet website and public notice be given by television if the City has a free access to a television channel)
and the City Council has otherwise complied with the legal requirements for the adoption of such tax rate. If the adopted tax rate exceeds the
rollback tax rate the qualified voters of the City by petition may require that an election be held to determine whether or not to reduce the tax
rate adopted for the current year to the rollback tax rate.
“Effective tax rate” means the rate that will produce last year’s total tax levy (adjusted) from this year’s total taxable values (adjusted). “Adjusted”
means lost values are not included in the calculation of last year’s taxes and new values are not included in the year’s taxable values.
“Rollback tax rate” means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values (adjusted)
multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the anticipated tax
collection rate.
The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an additional
one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the rollback tax rate calculations
are required to be offset by the revenue that will be generated by the sales tax in the current year.
Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation
of the various defined tax rates.
PROPERTY ASSESSMENT AND TAX PAYMENT
Property within the City is generally assessed as of January 1 of each year. Business inventory may, at the option of the taxpayer, be assessed
as of September. Effective January 1, 2012, oil and gas reserves are assessed on the basis of a valuation process that uses pricing information
contained in the most recent published Early Release Overview of the Annual Energy Outlook published by the United States Energy
Information Administration, as well as appraisal formulas developed by the State Comptroller of Public Accounts. Taxes become due October
1 of the same year, and become delinquent on February 15 of the following year. Taxpayers 65 years old or older are permitted by State law
to pay taxes on homesteads in four installments with the first due before February 15 of each year and the final installment due before August
15.
PENALTIES AND INTEREST
Charges for penalties and interest on the unpaid balance of delinquent taxes are made as follows:
Cumulative Cumulative
Month Penalty Interest Total
February 6% 1% 7%
March 7 2 9
April 8 3 11
May 9 4 13
June 10 5 15
July 12 6 18
After July, penalty remains at 12%, and interest increases at the rate of 1% each month. In addition, if an account is delinquent in July, an
amount up to 20% attorney's collection fee is added to the total tax penalty and interest charge. Under certain circumstances, taxes which
become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or
interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the
amounts due. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law
provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any
petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition
taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the
bankruptcy court. In many cases post-petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the
bankruptcy court.
CITY APPLICATION OF PROPERTY TAX CODE
The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $30,000. The City has
not granted an additional exemption of 20% of the market value of residence homesteads. Ad valorem taxes are not levied by the City against
9
the exempt value of residence homesteads for the payment of debt. The City does not tax nonbusiness personal property. The City does
permit split payments, but discounts are not allowed. The City does collect the additional one-half cent sales tax for reduction of ad valorem
taxes. The City has adopted a tax abatement policy (see “TAX INFORMATION - TAX ABATEMENT POLICY”). An election was held on May
10, 2008 and the voters of College Station approved the ad valorem tax freeze for residential homesteads for disabled and age 65 or older
persons. Brazos County collects the taxes for the City.
TAX ABATEMENT POLICY
The City has established tax abatement guidelines and criteria for economic development prospects in the City. In order to be eligible for
designation as a Reinvestment Zone and receive tax abatement, the planned improvement:
1. Must be expected to have an increased appraised ad valorem tax value of at least $1,000,000 based upon the Brazos Central
Appraisal District’s assessment of the eligible property.
2. Must be expected to prevent the loss of payroll or retain, increase or create a payroll on a permanent basis in the City.
The following factors among others should be considered in determining whether to grant tax abatement and, if so, the percentage of value
to be abated and the duration of the tax abatement:
1. Value of land and existing improvements, if any;
2. Type and value of proposed improvements;
3. Productive life of proposed improvements;
4. Number of existing jobs to be retained by proposed improvements;
5. Number of type of new jobs to be created by proposed improvements;
6. Amount of local payroll to be created;
7. Whether persons residing or projected to reside within the City will have the opportunity to fill the new jobs being created;
8. Amount of local taxes to be generated directly;
9. Amount of property tax base valuation which will be increased during term of abatement and after abatement, which shall include
a definitive commitment that such valuation shall not, in any case, be less than $1,000,000;
10. The costs to be incurred by the City to provide facilities or services directly resulting from the new improvements;
11. The amount of ad valorem taxes to be paid to the City during the abatement period considering (a) the existing values, (b) the
percentage of new value abated, (c) the abatement period, and (d) the value after expiration of the abatement period;
12. The population growth of the City that occurs directly as result of new improvements;
13. The types of public improvements, if any, to be made by the applicant seeking abatement;
14. Whether the proposed improvements compete with existing businesses to the detriment of the local economy;
15. The impact on the business opportunities of existing businesses;
16. The attraction of other new businesses to the area;
17. The overall compatibility with the zoning ordinances and comprehensive plan for the area; and/or
18. Whether the project is environmentally compatible with no negative impact on quality of life perceptions.
Neither a Reinvestment Zone nor abatement agreement shall be authorized if it is determined that:
1. There would be substantial adverse affect on the provision of government service or tax base;
2. The applicant has insufficient financial capacity;
3. Planned or potential use of the property would constitute a hazard to public safety, health or morals;
4. Violation of other code or laws;
5. The agreement was signed after the commencement of construction, alteration or installation of improvements related to the
project; or
6. Any other reason deemed appropriate by the City Council
ECONOMIC DEVELOPMENT
In the fall of 2013, the College Station City Council adopted an Economic Development Master Plan. This document represents the City’s
first such effort and joins the many other Master Plans, Neighborhood, Corridor, and District Plans created to aid in successful implementation
of the Comprehensive Plan. The Master Plan defines the goals and objectives of the City’s economic development efforts and lays out
strategies and detailed actions to achieve these goals and objectives. The plan specifically identified six strategic initiatives that the City’s
economic development program area should focus its efforts on: sustain and enhance high quality of life; support and partner with Texas
A&M University and the Texas A&M University System; support retail development; support and stimulate biotechnology research and
advanced manufacturing; support and stimulate health and wellness market; and support and stimulate sports, entertainment, and hospitality
market.
Furthermore, the Plan also details how the plan should be monitored and updated over time, and identifies a series of formal economic
development policy guidelines that were also adopted. These guidelines state that in order to ensure the ongoing competitiveness of the
community, no State authorized incentive should immediately be discounted. The Texas Constitution and multiple State statutes identify the
role of economic development by both the State and its municipalities as a public purpose. While recognizing there is no standard strategy,
policy, or program for economic development, the Texas Legislature has created a vast array of tools that local governments have at their
10
disposal. The objective of these tools is to not only encourage development and diversification of the Texas economy, but to simultaneously
enhance the participating community’s overall quality of life. Incentives to consider may include, but not be limited to: Chapter 380 financing;
development fee rebates; enterprise zone program sponsorship; Freeport exemptions; infrastructure assistance; land transactions; delayed
annexation or limited purpose annexation; special districts; reinvestment zones (tax abatement or tax increment); and fast track development
process.
The City and the City of Bryan, Texas have also entered into an “Interlocal Cooperation and Joint Development Agreement” (the “Interlocal
Agreement”) in connection with implementing a joint economic development program known as the Joint Research Valley BioCorridor
Development Project (the “Project”). Under the terms of the Interlocal Agreement, the City will make funds available to the City of Bryan,
and the City of Bryan will make funds available to the City, for certain defined public infrastructure projects that are intended to enhance
development of the Project. The obligations of each city under the Interlocal Agreement shall not constitute a debt for purposes of any
provision of the State Constitution, and are intended to be paid from the general revenues of each city.
[Remainder of Page Intentionally Left Blank]
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TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS" and " - POST
BID MODIFICATION" in the Notice of Sale and Bidding Instructions.
(1) Certified taxable assessed valuation for tax year 2017 as reported by the Brazos Central Appraisal District. This amount is subject to change during
ensuing year.
(2) The debt service on a portion of the Certificates will be internally allocated by the City as being payable from the surplus revenues from the respective
enterprise funds. Although the City expects to pay for this portion of the Certificates with surplus enterprise funds, the Certificates are secured solely by
a pledge of ad valorem taxes and by a pledge of combined utility system surplus net revenues limited to $1,000. See “THE CERTIFICATES- SECURITY
AND SOURCE OF PAYMENT.” There is no guarantee that payments from these enterprise funds will be made. If payments are not made from the enterprise
funds, the City will be required to levy ad valorem taxes in amounts sufficient to make such payments.
(3) In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally allocated
portions of this debt as payable from the respective enterprise funds. The self-supporting amounts listed above are projections of debt that is expected to be
retired by the City based on actual historical payments from these funds to pay for debt service the outstanding certificates of obligation. There is no guarantee
that payments from these funds will continue in the future. Includes a portion of the Certificates. See “DEBT INFORMATION – TABLE 10 – SELF
SUPPORTING DEBT.”
(4) Net of Interest and Sinking Fund as of September 30, 2017.
2017/2018 Market Valuation Established by Brazos Central Appraisal District 9,173,108,485 $
(excluding exempt property)
Less Exemptions/Reductions at 100% Market Value:
Productivity Loss 116,780,298 $
Over 65 Homestead Exemptions 94,578,557
Pollution Control 209,480
Member Armed Service Surviving Spouse 596,250
Freeport 11,763,418
Disabled Veteran 25,970,006
Homestead 14,176,649
Abatements 6,943,272 271,017,930
2017/2018 Taxable Assessed Valuation 8,902,090,555 $ (1)
Debt Payable from Ad Valorem Taxes (as of 2/15/2018)
General Obligation Improvement Bonds, Series 2008 845,000
Certificates of Obligation, Series 2008 2,535,000
General Obligation Refunding Bonds, Series 2009 910,000
Certificates of Obligation, Series 2009(2)3,670,000
General Obligation Improvement Bonds, Series 2009(2)490,000
General Obligation Refunding Bonds, Series 2010 12,815,000
Certificates of Obligation, Series 2010 1,995,000
General Obligation Improvement Bonds, Series 2010 13,510,000
Certificates of Obligation, Series 2011 5,880,000
General Obligation Improvement Bonds, Series 2011 0
Certificates of Obligation, Series 2012 12,655,000
General Obligation Improvement and Refunding Bonds, Series 2012 11,515,000
Certificates of Obligation, Series 2013 8,335,000
General Improvement and Refunding Bonds, Series 2013 14,040,000
Certificates of Obligation, Series 2014 27,865,000
General Improvement and Refunding Bonds, Series 2014 25,400,000
Certificates of Obligation, Series 2016 22,650,000
General Improvement and Refunding Bonds, Series 2016 36,330,000
General Improvement and Refunding Bonds, Series 2017 29,310,000
Certificates of Obligation, Series 2017 54,365,000
The Certificates (2)36,885,000 *322,000,000
Less: Self Supporting Debt (3)146,880,000 $
Less: Interest and Sinking Fund as of 9/30/2017 5,061,437
Net Debt Payable from Ad Valorem Taxes 170,058,563 $
Ratio of Net Debt Payable from Ad Valorem Taxes to Taxable Assessed Valuation(4)1.91%
Per Capita Taxable Assessed Valuation - $75,543
Per Capita Net Funded Debt - $1,443 (4)
2018 Estimated Population - 117,841
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TABLE 2 - TAXABLE ASSESSED VALUATIONS BY CATEGORY
NOTE: Valuations shown are certified taxable assessed values reported by the Brazos Central Appraisal District to the State Comptroller of
Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District
updates records.
Taxable Appraised Value, Fiscal Year Ending September 30,
2018 2017 2016
% of % of % of
Category Amount Total Amount Total Amount Total
Real, Residential, Single-Family 4,891,101,082$ 53.32%4,470,806,990$ 56.58%3,942,774,761$ 53.35%
Real, Residential, Multi-Family 1,951,938,574 21.28%1,275,467,653 16.14%1,326,289,539 17.95%
Real, Vacant Lots/Tracts 166,018,722 1.81%158,722,669 2.01%142,089,823 1.92%
Real, Acreage (Land Only)117,980,979 1.29%87,626,228 1.11%92,882,946 1.26%
Real, Farm and Ranch Improvements 95,828,034 1.04%113,059,943 1.43%108,202,479 1.46%
Real, Commercial/Industrial 1,497,083,484 16.32%1,340,756,747 16.97%1,330,864,915 18.01%
Real, Oil, Gas & Other Mineral Reserves 4,375,082 0.05%5,036,746 0.06%10,793,941 0.15%
Real and Tangible Personal, Utilities 40,806,430 0.44%40,325,800 0.51%30,944,850 0.42%
Tangible Personal, Business 360,514,767 3.93%371,077,880 4.70%369,625,180 5.00%
Tangible Personal, Other 2,449,980 0.03%1,988,130 0.03%2,024,340 0.03%
Real Property Inventory 31,155,861 0.34%23,079,643 0.29%17,672,671 0.24%
Special Inventory 13,855,490 0.15%13,282,100 0.17%15,787,080 0.21%
Total Appraised Value Before Exemptions 9,173,108,485$ 100.00%7,901,230,529$ 100.00%7,389,952,525$ 100.00%
Less: Total Exemptions/Reductions 271,017,930 277,266,358 227,214,245
Taxable Assessed Value 8,902,090,555$ 7,623,964,171$ 7,162,738,280$
2015
% of % of
Category Amount Total Amount Total
Real, Residential, Single-Family 3,657,836,541$ 53.15%3,449,698,417$ 53.49%
Real, Residential, Multi-Family 1,296,417,661 18.84%1,121,645,054 17.39%
Real, Vacant Lots/Tracts 141,077,944 2.05%142,441,840 2.21%
Real, Acreage (Land Only)109,675,903 1.59%111,056,120 1.72%
Real, Farm and Ranch Improvements 74,289,622 1.08%76,318,782 1.18%
Real, Commercial/Industrial 1,204,879,922 17.51%1,159,961,447 17.99%
Real, Oil, Gas & Other Mineral Reserves 3,227,032 0.05%3,329,602 0.05%
Real and Tangible Personal, Utilities 37,673,140 0.55%35,261,190 0.55%
Tangible Personal, Business 330,937,290 4.81%318,648,040 4.94%
Tangible Personal, Other 2,096,570 0.03%2,138,640 0.03%
Real Property Inventory 13,256,668 0.19%18,049,612 0.28%
Special Inventory 10,534,560 0.15%10,293,530 0.16%
Exempt Property Adjustment - 0.00%- 0.00%
Total Appraised Value Before Exemptions 6,881,902,853$ 100.00%6,448,842,274 $ 100.00%
Less: Total Exemptions/Reductions 227,302,019 217,723,264
Taxable Assessed Value 6,654,600,834$ 6,231,119,010 $
Taxable Appraised Value, Fiscal Year Ending September 30,
2014
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TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT HISTORY
(1) Source: The City.
(2) As reported by the Brazos Central Appraisal District; subject to change during the ensuing year.
(3) Payable from ad valorem taxes. Does not include self-supporting debt.
(4) Certified taxable assessed valuation for tax year 2017 as reported by the Brazos Central Appraisal District. This amount is subject to change during
ensuing year.
(5) Projected, includes the Certificates. Preliminary, subject to change.
TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY
(1) Collections as of February 28, 2018. A portion of the City's taxpayer base has elected to provide split payments to the City which will be due in part on
June 30, 2018.
TABLE 5 - TEN LARGEST TAXPAYERS
GENERAL OBLIGATION DEBT LIMITATION . . . No general obligation debt limitation is imposed on the City under current State law or the
City's Home Rule Charter (see “THE CERTIFICATES - TAX RATE LIMITATION”).
TABLE 6 - TAX ADEQUACY
Ratio of Net
Fiscal Taxable G.O. Tax Debt
Year Taxable Assessed to Taxable Net G.O.
Ended Estimated Assessed Valuation Net G.O.Assessed Tax Debt
9/30 Population(1) Valuation(2)Per Capita Tax Debt (3)Valuation(4)Per Capita
2013 97,534 5,944,312,987$ 60,946$ 96,750,000$ 1.63%992$
2014 99,918 6,231,119,010 62,362 88,100,000 1.41%882
2015 102,117 6,654,600,834 65,166 101,630,000 1.53%995
2016 106,465 7,162,738,280 67,278 118,350,000 1.65%1,112
2017 109,936 7,623,964,171 69,349 169,595,000 2.22%1,543
2018 117,841 8,902,090,555 (4)75,543 175,120,000 (5)1.97%(5)1,486 (5)
Fiscal Year General Interest and % Current % Total
Ended 9/30 Tax Rate Fund Sinking Fund Tax Levy Collections Collections
2013 0.4307$ 0.2351$ 0.1956$ 25,503,096$ 99.31%100.30%
2014 0.4260 0.2329 0.1931 26,407,915 99.26%100.15%
2015 0.4525 0.2594 0.1931 29,803,314 98.70%99.17%
2016 0.4525 0.2594 0.1931 32,065,351 98.95%100.03%
2017 0.4725 0.2772 0.1953 37,007,711 100.08%100.31%
2018 0.4975 0.2772 0.2203 43,310,628 88.53%(1)88.96%(1)
2017/2018 % of Total
Taxable Taxable
Nature Assessed Assessed
Name of Taxpayer of Property Valuation Valuation
CPP College Station I LLC Real Estate 74,768,400$ 0.84%
Woodridge College Station LLC Mall 69,000,000 0.78%
Woodridge College Station Phase II LLC Mall 68,000,000 0.76%
POM-College Station LLC Mall 56,954,330 0.64%
Culpepper Family LP Real Estate 55,510,436 0.62%
SHP-The Callaway House LP Apartment Buildings 54,997,208 0.62%
College Station Hospital LP Hospital 54,727,080 0.61%
Israel Weinberg Commercial 52,322,094 0.59%
SW Meadows Point LP Apartment Buildings 52,241,125 0.59%
BVP 2818 Place LP Apartment Buildings 49,686,952 0.56%
588,207,625$ 6.61%
14
(1) Includes the Certificates and excludes self supporting debt. Interest has been estimated for the purpose of illustration. Preliminary, subject to change.
TABLE 7 - ESTIMATED OVERLAPPING DEBT
Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on properties
within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This statement of direct
and estimated overlapping ad valorem tax debt (“Tax Debt”) was developed by the City from information obtained from the Brazos Central
Appraisal District. Except for the amounts relating to the City, the City has not independently verified the accuracy or completeness of such
information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may
have issued additional debt since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of
additional debt, the amount of which cannot be determined. The following table reflects the estimated share of overlapping Tax Debt of the
City.
Source: Municipal Advisory Council of Texas.
(1) Certified taxable assessed valuation for tax year 2017 as reported by the Brazos Central Appraisal. This amount is subject to change during ensuing year.
(2) Projected, includes the Certificates and excludes self supporting debt. Preliminary, subject to change.
Net Maximum Tax Supported Principal and Interest Requirements (2018)………………………………19,447,623 $ (1)
$0.22067 Tax Rate at 99% Collection Produces ………………………………………………………19,447,801 $
Net Average Tax Supported Principal and Interest Requirements (2018-2038)…………………………11,912,056 $ (1)
$0.13517 Tax Rate at 99% Collection Produces ………………………………………………………11,912,626 $
City's
Total Estimated Overlapping
2017/2018 Taxable 2017 Tax Debt as %Tax Debt as
Assessed Value Tax Rate of 3/31/2018 Applicable of 3/31/2018
City of College Station 8,902,090,555 $ (1)0.4975 175,120,000 $ (2)100.00%175,120,000 $
Brazos County 17,555,003,472 0.4850 85,725,000 49.18%42,159,555
Bryan ISD 7,037,668,662 1.3400 213,345,000 1.86%3,968,217
College Station ISD 8,844,981,231 1.3980 360,700,000 88.85%320,481,950
15
DEBT INFORMATION
TABLE 8 - PRO-FORMA AD VALOREM TAX DEBT SERVICE REQUIREMENTS*
* Preliminary, subject to change. See "CONDITIONS OF SALE - ADVANCED ADJUSTMENT OF PRINCIPAL AMOUNT AND/OR TYPES OF BIDS " and " - POST BID MODIFICATION" in the Notice of Sale and
Bidding Instructions.
(1) Interest has been estimated at current market rates for the purpose of illustration.
(2) In the past, the City has sold certificates of obligation to finance projects for the City’s water and sewer system, and electric system and has internally allocated portions of this debt as payable from the respective
enterprise funds. The self-supporting amounts listed above are projections of debt that is expected to be retired by the City based on actual historical payments from these funds to pay for debt service the
outstanding certificates of obligation. There is no guarantee that payments from these funds will continue in the future. Includes a portion of the Certificates. See “TABLE 10 – SELF SUPPORTING DEBT” and
the accompanying footnotes.
Total Net
Year Total Less: Tax Supported
End Outstanding Self-Supporting Debt Service
9/30 Debt Principal Interest (1)Total Debt Service(2)Requirements(2)
2018 36,363,848$ 16,916,225$ 19,447,623$
2019 32,921,690 840,000$ 986,190$ 1,826,190$ 17,056,900 17,690,980
2020 32,941,293 1,310,000 1,462,358 2,772,358 17,592,924 18,120,727
2021 31,317,075 1,375,000 1,396,858 2,771,858 17,230,973 16,857,960
2022 28,831,125 1,445,000 1,328,108 2,773,108 15,142,135 16,462,097
2023 27,863,480 1,520,000 1,255,858 2,775,858 14,164,240 16,475,097
2024 27,144,558 1,590,000 1,179,858 2,769,858 13,825,018 16,089,397
2025 25,178,172 1,675,000 1,100,358 2,775,358 13,284,866 14,668,663
2026 23,942,930 1,700,000 1,016,608 2,716,608 12,673,196 13,986,341
2027 21,260,486 1,785,000 931,608 2,716,608 11,304,999 12,672,094
2028 19,234,540 1,850,000 860,208 2,710,208 10,016,094 11,928,654
2029 16,936,024 1,835,000 786,208 2,621,208 8,931,031 10,626,201
2030 14,973,766 1,910,000 712,808 2,622,808 7,224,286 10,372,288
2031 13,310,480 1,990,000 636,408 2,626,408 7,009,609 8,927,279
2032 12,715,175 2,065,000 556,808 2,621,808 6,415,854 8,921,129
2033 11,305,125 2,145,000 474,208 2,619,208 5,257,598 8,666,735
2034 9,971,938 2,215,000 404,495 2,619,495 4,512,548 8,078,885
2035 6,897,350 2,290,000 331,400 2,621,400 2,688,363 6,830,388
2036 6,895,925 2,370,000 254,113 2,624,113 2,690,325 6,829,712
2037 4,915,625 2,440,000 174,125 2,614,125 2,265,644 5,264,106
2038 2,535,000 88,725 2,623,725 1,386,900 1,236,825
404,920,604$ 36,885,000$ 15,937,303$ 52,822,303$ 207,589,725$ 250,153,181$
The Certificates*
16
TABLE 9 - INTEREST AND SINKING FUND BUDGET PROJECTION
__________
(1) Excludes self-supporting debt. Includes the Certificates. Preliminary, subject to change.
(2) The outstanding portion of the Certificates of Obligation, Series 2009, supported by the Convention Center, have been paid for in full as one transfer in
the amount of $157,979.48 to the Interest and Sinking Fund. That amount will be used to pay off future payments of the Certificates of Obligation, Series
2009 supported by the Convention Center.
TABLE 10 – SELF-SUPPORTING DEBT*
______________
* Preliminary, subject to change.
(1) Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2009, Series 2010, Series 2011, Series 2012, Series 2013, Series 2014 and
a portion of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series 2013,
Series 2014, Series 2016 and Series 2017. Includes a portion of the Certificates.
(2) Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2010, Series 2011, Series 2012, Series 2013, Series 2014, Series 2017 and
a portion of the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2012, Series 2013,
Series 2014, Series 2016. Includes a portion of the Certificates.
(3) Includes a portion of the City’s Certificates of Obligation, Series 2008, Series 2009, Series 2012, Series 2014, Series 2016, Series 2017 and a portion of
the General Obligation Refunding Bonds, Series 2010, General Obligation Improvement and Refunding Bonds, Series 2013, Series 2014, Series 2016,
and Series 2017. Includes a portion of the Certificates.
(4) Includes a portion of the City’s Certificates of Obligation, Series 2009. The City has transferred to the Interest and Sinking Fund $157,979.48 from the
Convention Center fund to pay the debt service shown in this column. Includes a portion of the Certificates.
(5) Includes a portion of the City's Certificates of Obligation, Series 2009. Includes a portion of the Certificates.
(6) Includes a portion of the City’s General Obligation Refunding Bonds, Series 2009.
(7) The debt service described in this table is general obligation debt for which repayment is provided from revenues from other sources. It is the City’s
current policy to provide these payments from such sources. There is no assurance that the use of these sources to make these payments will continue in
the future. If payments are not made from such sources in the future, the difference will be paid for with ad valorem taxes.
Total Net Tax Supported Debt Service Requirements, Fiscal Year Ending September 30, 2018(1)19,447,623$
Interest and Sinking Fund, September 30, 2017(2)5,061,437$
Budgeted Interest and Sinking Fund Tax Levy 18,985,125
Budgeted Investment Earnings 50,000
Budgeted Transfers 464,553 24,561,115
Estimated Balance, September 30, 2018 5,113,492$
Year Total
End Electric Wastewater Water Convention Parking Self-Supporting
9/30 Fund(1) Fund (2)Fund(3)Center(4)Landfill(5)Garage(6) Debt Service (7)
2018 5,780,408$ 4,506,475$ 6,027,844$ 12,980$ 363,781$ 224,738$ 16,916,225$
2019 5,865,351 4,660,281 5,943,443 12,388 352,963 222,475 17,056,900
2020 6,036,408 4,916,229 6,054,936 7,100 353,850 224,400 17,592,924
2021 6,014,924 4,862,263 5,992,836 6,900 354,050 - 17,230,973
2022 5,920,266 3,968,933 4,922,961 6,675 323,300 - 15,142,135
2023 5,695,486 3,624,193 4,516,586 6,425 321,550 - 14,164,240
2024 5,342,324 3,605,783 4,541,686 6,175 329,050 - 13,825,018
2025 5,034,803 3,350,478 4,562,986 5,925 330,675 - 13,284,866
2026 4,776,075 3,350,760 4,209,136 5,675 331,550 - 12,673,196
2027 4,213,287 3,133,654 3,620,958 5,425 331,675 - 11,304,999
2028 4,054,364 2,768,106 2,863,999 5,225 324,400 - 10,016,094
2029 3,593,974 2,613,608 2,388,499 5,075 329,875 - 8,931,031
2030 2,735,953 2,616,306 1,872,027 - - - 7,224,286
2031 2,545,044 2,591,916 1,872,649 - - - 7,009,609
2032 2,185,110 2,365,795 1,864,949 - - - 6,415,854
2033 1,635,748 1,952,451 1,669,399 - - - 5,257,598
2034 1,037,385 1,804,876 1,670,286 - - - 4,512,548
2035 440,550 1,027,406 1,220,406 - - - 2,688,363
2036 437,556 1,027,519 1,225,250 - - - 2,690,325
2037 439,225 1,026,453 799,966 - - - 2,265,644
2038 439,875 698,625 248,400 - - - 1,386,900
74,224,115 $ 60,472,108 $ 67,040,837 $ 85,968 $ 4,046,719 $ 671,613 $ 207,589,725 $
17
TABLE 11 - AUTHORIZED BUT UNISSUED TAX BONDS
_______________
(1) Contains projects which may have been completed or abandoned; therefore, the remaining authorized but unissued bonds are not likely to ever be issued.
ANTICIPATED ISSUANCE OF GENERAL OBLIGATION DEBT
The City has no firm plans for the issuance of additional general obligation debt payable from ad valorem taxes within the next twelve months.
OTHER OBLIGATIONS
Currently, the City has no outstanding capital leases or loans.
PENSION FUND
The City provides pension benefits for all of its full-time employees through the Texas Municipal Retirement System (“TMRS”), a State-wide
administered pension plan. The City makes annual contributions to the plan equal to the amounts accrued for pension expense. (For more
detailed information concerning the retirement plan, see “APPENDIX B - EXCERPTS FROM THE ANNUAL FINANCIAL REPORT” -Note 21.)
The City received the contribution rates from TMRS as determined by the December 31, 2016 actuarial valuation. The City’s contribution rate
for January 1, 2018 will be 13.38%. The City’s contributions rate of 13.28% became effective January 1, 2017. On September 13, 2012, Council
approved revisions to the City's TMRS Ordinance. The revisions include a reduction in the updated service credits (USC) for current employees
and a reduction in the Annuity Increase Cost of Living Adjustment (COLA) for retirees. The funding status as of December 31, 2016 is as
follows:
OTHER POST EMPLOYMENT BENEFITS
PROGRAM DESCRIPTION . . . In addition to pension benefits, as required by state laws and defined by City policy, the City makes available
postretirement medical, dental, vision, drug and life insurance benefits to all employees who meet TMRS retirement qualifications, are a
minimum of fifty five (55) years of age, retire from the City with a minimum of five (5) years of service to the City, and who enroll themselves
and their eligible dependent(s) on or before the effective date of their retirement through the City’s single-employer defined benefit other
post-employment benefit (OPEB) plan. The life insurance plan provides a $10,000 fully insured death benefit coverage upon retirement
which ceases upon attainment of age 65 for retirees. So long as monthly premium payments are made, the healthcare plan provides insurance
to eligible retirees, their spouses and dependents through the City’s group health insurance plan, which covers both active and retired
members, until attainment of age 65. Benefit provisions as well as retiree premium contributions are established by management.
The City determines the employer and participant contribution rates annually based on recommendations of City staff and the City’s
consultant. All medical, dental, vision and drug care benefits are provided through the City’s self-insured health plan. The benefit levels are
the same as those afforded to active employees. Life insurance for eligible retirees is paid entirely by the City.
Date of Amount Issued
Authorization Purpose Authorized To Date Unissued
1/24/1984 (1)Fire Substation Building 700,000$ -$ 700,000$
1/24/1984 (1)Street Improvements 6,325,000 5,825,000 500,000
11/4/2003 Municipal Complex Improvements 7,610,000 3,955,000 3,655,000
11/4/2008 Street Improvements 48,785,000 48,785,000 -
11/4/2008 Library Improvements 8,385,000 8,385,000 -
11/4/2008 Park Improvements 12,790,000 12,145,000 645,000
84,595,000$ 79,095,000$ 5,500,000$
12/31/2016
Actuarial Value of Assets 226,024,775 $
Actuarial Accrued Liability (AAL)267,674,838
Percent of Pension Benefit Obligation 84.44%
Unfunded Actuarial Accrued Liability (UAAL)41,650,063 $
Annual Covered Payroll 53,016,848
Percent of Covered Payroll 78.56%
Estimated Employer Contribution 6,969,939 $
18
During fiscal year 2017, 86 former employees were covered under this arrangement, with claims less retiree contributions totaling
$540,239.
ANNUAL OPEB COST AND NET OPEB OBLIGATION . . .The City’s annual OPEB cost is based on the annual required contribution (ARC) of
the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. Despite the apparent implications of
the term ARC, the City is not required to contribute the ARC to the plan each year, Instead, the ARC provides a basis for evaluating whether
the City’s contributions for OPEB are adequate to fund the benefits during the working lifetime of current employees (i.e., the normal cost)
and to amortize existing unfunded obligations (i.e., the obligations for current retirees plus that portion of the current employees’ obligations
that are attributed to past service) in a systematic manner over the amortization period prescribed by GASB.
The annual OPEB cost is the annual accounting expense recorded on the City’s Statement of Revenues, Expenses and Changes in Net Assets
and on the City’s Statement of Activities. The annual OPEB cost is equal to (1) the ARC for the current fiscal year, plus (2) interest on the
Net OPEB Obligation at the beginning of the year, reduced by (3) an adjustment to the ARC which is equal to an amortization of the beginning
of the year Net OPEB Obligation.
Generally, the Net OPEB Obligation is the cumulative difference since the effective date of GASB 45 between the annual OPEB cost and
the employer’s contributions to the plan including the OPEB liability/(asset) at transition, if any. Whenever the City contributes an amount
less than the annual OPEB cost, this shortfall will increase the City’s Net OPEB Obligation.
On September 11, 2017 the City Council approved a resolution adopting the Public Agencies Retirement Services (PARS) Post-Retirement
Health Care Plan Trust and on September 25, 2017, the City Council pass a resolution appropriating the funds. Effective September 27,
2017, with the initial employer contribution of $1,493,809, the City entered into a section 115 Irrevocable Exclusive Benefit agent multiple-
employer trust to fund its Other Post Employment Benefit obligation.
ACTUARIAL METHODS AND ASSUMPTIONS . . . Actuarial valuations involve estimates of the value of reported amounts and assumptions about
the probability of events far into the future. Actuarially determined amounts are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future.
The required schedule of funding progress immediately following the notes to the financial statements presents multi-year trend information
about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
GASB No. 45 calculations are based on the types of benefits provided under the terms of the substantive plan at the time of each valuation
and on the pattern of sharing of costs between the employer and plan participants to that point. In addition, the projection of benefits for
financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of
cost sharing between the employer and plan participants in the future.
Actuarial calculations reflect a long-term perspective. In addition, consistent with that perspective, actuarial methods and assumptions used
in developing the amounts in this report include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities.
2014 2015 2016 2017
Annual Required Contribution (ARC)1,449,844 $ 1,810,895 $ 1,910,536 $ 1,841,068 $
Interest on Net OPEB Obligations 397,569 400,494 456,941 513,022
Adjusted to the ARC (492,618) (522,847) (596,541) (489,016)
Annual OPEB Cost 1,354,795 1,688,542 1,770,936 1,865,074
Contributions Made (406,326) (434,136) (705,451) (2,034,048)
Increase in net OPEB obligation 948,469 $ 1,254,406 $ 1,065,485 $ 168,974 - $
Net OPEB Obligation, beginning of year 7,951,378 8,899,847 10,154,253 11,219,738
Net OPEB Obligation, end of year 8,899,847 $ 10,154,253 $ 11,219,738 $ 11,050,764 $
Percentage
Fiscal Annual Actual of Annual
Year OPEB Contribution OPEB Cost Net OPEB
Ended 9/30 Costs Made Contribution Obligation
2014 1,354,795 406,326 29.99%8,899,847
2015 1,688,542 434,136 25.71%10,154,253
2016 1,770,936 705,451 39.83%11,219,738
2017 1,865,073 2,034,048 109.06%11,050,764
Four-Year Trend Information
19
The required contribution rates were determined as part of the October 1, 2016 actuarial valuation. Significant methods and assumptions
follow:
FUNDING STATUS AND FUNDING PROGRESS . . . The Schedule of Funding Progress presents information as of the current valuation date and
the two preceding valuation dates. As of the date of this financial statement, the City has had three valuations
There are factors that affect the ability to compare amounts reported from one actuarial valuation date to the next. The assumptions that have
been changed since the previous valuation are:
- Mortality, Disability and Termination assumptions were updated to reflect current assumptions used by the TMRS actuary in
valuing the pension plan;
- the Assumed Per Capita Health Benefit Costs for retirees and dependents have been updated to reflect changes in claims
expectations; and
- the Health Benefit Cost and Retiree Contribution Trends and Expense Trend Rate has been updated to reflect changes in recent
experience and its effect on short-term expectations.
The City has had three separate valuations, one of which used the October 1, 2012 valuation date, October 1, 2014 and October 1, 2016
valuation date. The October 1, 2012 valuation date was used to develop results for the fiscal years ending September 30, 2013 and 2014. The
plan was changed effective January 1, 2012 to eliminate post-65 medical coverage and was changed effective January 1, 2013 to eliminate
one of the PPO benefit options. While the plan typically undergoes a biennial valuation, pursuant to paragraph 12 of GASB 45, a new
valuation must be performed if there are significant changes to the plan since the previous valuation. The October 1, 2014 valuation date was
used to develop results for the fiscal years ending September 30, 2015 and 2016, as part of the plan’s biennial valuation. The October 1, 2016
valuation date was used to develop results for the fiscal year ending September 30, 2017.
Actuarial valuation date 10/1/2016
Asset Valuation Method:Market
Actuarial Cost Method:Projected Unit Credit
Actuarial Assumption:
Investment Rate of Return*4.50%
*Includes Inflation at:3.50%
Projected Salary Increases N/A
Annual Healthcare Trend Rates:8.50% in FYE 2017 declining
to 5.25% in FYE 2024
Amortization Method:Level Dollar
Remaining Amortization Period:30 year open period
Unfunded Annual UAAL as
Actuarial Actuarial Actuarial Actuarial Covered Percentage of
Valuation Value of Accrued Liability Funded Accrued Payroll Covered
Date Assets (AAL)Ratio Liability (AAL)(Fiscal Year)Payroll
10/1/2012 -$ 10,897,037$ 0.00%10,897,037$ 42,255,425$ 25.79%
10/1/2014 - 15,013,856 0.00%15,013,856 45,654,271 32.89%
10/1/2016 - 15,564,973 0.00%15,564,973 53,016,848 29.36%
20
FINANCIAL INFORMATION
TABLE 12 - GENERAL FUND REVENUES AND EXPENDITURE HISTORY
Source: The City’s audited financial statements.
2017 2016 2015 2014 2013
Revenues:
Taxes 53,749,315$ 48,737,894$ 46,750,120$ 41,951,522$ 39,654,465$
Licenses & Permits 2,127,142 2,132,802 1,500,777 1,424,598 1,238,967
Intergovernmental 828,510 1,373,950 355,083 189,103 469,783
Charges for Services 3,863,744 3,809,206 3,572,684 2,987,778 2,605,519
Fines, Forfeits and Penalties 2,917,735 3,255,051 2,693,647 3,038,926 3,252,418
Investment Income 241,880 148,302 116,074 66,264 88,198
Rents & Royalties 284,351 187,328 136,228 542,816 650,407
Contributions 7,580 8,880 1,251 11,016 56,990
Other 775,114 434,537 3,252,310 113,802 212,349
Total Revenues 64,795,371$ 60,087,950$ 58,378,174$ 50,325,825$ 48,229,096$
Expenditures:
General Government 6,228,021$ 5,524,471$ 4,853,358$ 5,108,448$ 3,825,760$
Fiscal Services 3,815,223 3,733,550 3,314,990 3,029,566 2,970,342
Police Department 21,372,560 20,170,450 18,533,889 17,080,568 16,515,820
Fire Department 17,001,580 16,916,819 14,881,983 13,585,022 13,297,527
Planning & Development Services 3,741,263 3,243,768 3,106,143 2,867,857 3,505,029
Parks and Recreation 8,621,075 9,279,126 8,194,670 4,596,645 4,463,535
Information Technology 4,600,556 4,491,009 4,112,987 4,207,305 4,271,209
Public Works 8,151,055 11,162,508 9,156,069 7,611,303 6,519,248
Library Services 1,097,876 1,098,326 1,138,568 1,078,851 994,476
Contributions 1,280,215 1,220,251 1,187,500 1,184,115 1,086,012
Other - 863 217,114 222,034 1,300,627
Capital Improvement Projects 988,435 667,574 129,896 731,621 733,974
Total Expenditures 76,897,859$ 77,508,715$ 68,827,167$ 61,303,335$ 59,483,559$
Other Financing Sources (Uses):
Sale of General Fixed Assets 47,478$ -$ 8,974,205$ 4,582,111$ -$
Operating Transfers In 18,347,351 16,507,346 15,094,866 15,158,581 14,664,450
Operating Transfers Out (2,911,020) (2,376,443) (11,441,262) (4,444,465) (3,977,149)
Total Other Financing Sources (Uses)15,483,809$ 14,130,903$ 12,627,809$ 15,296,227$ 10,687,301$
Net Change in Fund Balance 3,381,321$ (3,289,862)$ 2,178,816$ 4,318,717$ (567,162)$
Fund Balance, Beginning of Year 19,133,202 22,423,064 20,244,248 15,925,531 16,492,693
Fund Balance, End of Year 22,514,523$ 19,133,202$ 22,423,064$ 20,244,248$ 15,925,531$
Fiscal Year Ended September 30,
21
TABLE 13 - MUNICIPAL SALES TAX HISTORY
The City has adopted the Municipal Sales and Use Tax Act, Texas, Tax Code, Chapter 321, which grants the City the power to impose and levy
a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the Certificates.
Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of
the tax, after deduction of a 2% service fee, to the City monthly. In May 1990, the voters of the City approved the imposition of an additional
sales and use tax of one-half of one percent (½ of 1%) for property tax reduction. The total sales tax rate for the City is 1.5%.
(1) Provided by the City.
(2) Based on population estimates provided by the City.
FINANCIAL POLICIES
Basis of Accounting . . .The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an
independent fiscal and accounting entity with a self-balancing set of accounts. Fund accounting segregates funds according to their intended
purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum
number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for
certain assets and liabilities of the governmental funds not recorded directly in those funds. Government funds are used to account for the
City’s general government activities. Governmental fund types use the flow of current financial resources measurement focus and the
modified accrual basis of accounting.
General Fund . . . The General Fund is the City’s primary operating fund. It is used to account for all activities typically considered
governmental functions of the City. These include Public Safety, Public Works, Parks and Recreation, Economic and Planning and
Development Services, the support functions for these areas, and the administrative functions for the City.
The General Fund for the 2017-2018 fiscal year is influenced by current policies and any approved policy changes. The policies include
inter-fund equity; maintaining a balance between revenues and expenditures; and maintaining the level of service currently provided as the
City experiences residential and commercial growth.
The City’s financial policies are for a General Fund balance of 15% of budgeted appropriations at year end. To the extent that the General
Fund balance exceeds this amount, this surplus is to be expended in future years for one time expenditures such as capital items and short
term projects.
Debt Service Fund . . .The Debt Service Fund accounts for the servicing of general long-term debt not being financed by proprietary or
nonexpendable trust funds. It is the City’s policy to maintain at least 8 1/3% of annual appropriated expenditures for debt service and any
associated fees as the Debt Service Fund balance at fiscal yearend. The City is in compliance with that policy.
Budgetary Procedures . . .Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. All budget
requests are compiled by the Finance Department and presented with comparative and supporting data to the Mayor and City Council for
review. Public hearings are properly advertised and conducted at City Hall for taxpayer comments. Prior to September 27, the budget is
legally enacted through passage of an ordinance. The City Council must approve all transfers of budgeted amounts between departments
within any fund and any revision that alters the total expenditure of any fund. An amount is also budgeted each year for contingencies which
may arise.
Fiscal
Year % of Equivalent of
Ended Total Ad Valorem Ad Valorem Per
9/30 Collected (1)Tax Levy Tax Rate Capita(2)
2012 21,498,319$ 86.06%0.38$ 223$
2013 23,064,035 90.44%0.39 236
2014 24,565,649 93.02%0.40 246
2015 26,687,963 89.55%0.41 261
2016 27,163,480 84.71%0.38 255
2017 28,561,762 77.18%0.36 260
22
THE COMBINED UTILITY SYSTEM
WATERWORKS SYSTEM
Since December 1981, the City has had the capability to produce and deliver 100% of its water. The system has been expanded to a system
of nine wells, with a combined capacity of 29 million gallons per day. The water is delivered to the distribution system by 14 miles of 30-
inch diameter and 36 inch diameter pipeline and two pumping stations.
Two of the wells mentioned above are shallow wells, less than 1,500 feet deep, drilled into the Carrizo and Sparta aquifers. The remaining
seven are deep wells, approximately 3,000 feet, drilled in the Simsboro Sand formation of the Carrizo-Wilcox aquifer. This is a very prolific
aquifer of high quality water that has the capacity to provide an adequate water supply for the City and surrounding communities through the
year 2060, and well beyond, if managed properly.
The Simsboro Sand, and all local aquifers, are regulated by the Brazos Valley Groundwater Conservation District, and permitting
requirements have been implemented for all new water wells. College Station has obtained a Drilling/Operating Permit from the
Groundwater District for the City to drill another Simsboro Well, Well #9, which will complete construction in FY-18. This well will meet
our projected demands for water for many years into the future. Well #10 remains in the planning stages, and would be constructed in
approximately 2022, depending upon the rate of growth of water demands. College Station is also investigating other water supply strategies
for the future. One example is Aquifer Storage and Recovery (ASR), which would store treated wastewater effluent in an aquifer for future
use, most likely during summer peaks. If implemented, this ASR system would greatly reduce the demand on the groundwater production
system and ensure a very stable water supply for the City.
The City has completed a Water Reclamation project, which pumps effluent from the wastewater treatment plant up to Veteran’s Park for
irrigation of playing fields, reducing the demand on the potable water system by approximately 350,000 gallons per day during watering
season. Additional phases of the reclaimed water system are in the planning stages. In 2016, the City completed a two year agreement with
an oil company, which provided the City with $470,000 of revenue for providing just under 200 million gallons of reclaimed water, and is
currently in a second contract that has generated $125,000 revenue so far.
The City also has stand by generators at strategic locations sufficient to provide adequate potable water for health and safety during an
extended area-wide electrical power outage.
Water rates were established by ordinance, passed and approved by the City Council, and the following rates will become effective July 1,
2018. The Residential rates are inclined block rates to encourage water conservation.
Type of Customer
Usage Charge (per 1,000 gallons)
Service Charge
Meter
Size
Residential, Commercial and Industrial 10.80 per mo. 3/4”
13.55 per mo. 1”
20.17 per mo. 1 1/2”
31.85 per mo. 2”
100.53 per mo. 3”
149.35 per mo. 4”
181.82 per mo. 6”
181.82 per mo. 8”
Residential $2.40 for usage from 0-10,000 gallons
$3.12 for usage from 11,000-15,000 gallons
$3.83 for usage from 16,000-20,000 gallons
$4.54 for usage from 21,000-25,000 gallons
$5.26 for usage from 26,000 gallons and more
Commercial $2.64 per 1,000 gallons
Commercial Irrigation Usage Charge
Commercial Irrigation Multifamily 3+ units
MUD #1 Residential and Commercial
$2.84 per 1,000 gallons
$2.64 per 1,000 gallons
Rates as above with an added 50% surcharge
23
WASTEWATER SYSTEM
The City’s waste water is treated by three City-owned wastewater treatment plants, Carter Creek Treatment Plant, Lick Creek Treatment Plant,
and Carter’s Lake Treatment Plant located within the City limits. The three plants have a combined treatment capacity of 11.5 mgd as compared
to annual average average daily demand of 7.4 mgd. The treatment plant’s capacity is estimated to be adequate to serve a population of 125,000.
Sewer rates were established by ordinance, passed and approved by the City Council, and became effective on October 1, 2016.
Residential (metered water) .......................................................... $20.28 including 4,000 gallons of metered water
Usage Charge ................................................................................ $4.06 per 1,000 gallons of additional metered water
$44.64 maximum per month
Residential (without meter to each unit)....................................... $25.80 per unit per month
Commercial and Industrial ........................................................... $17.40 per month
Usage
Charge ...........................................................................................
.......................................................................................................
$4.83 per 1,000 gallons of metered water usage
There are 2,476 customers (units) who receive their water from Wellborn Water, but sewer is provided by the City of College Station. Those
customers pay an initial usage charge of $44.64 per month. After six months of documented waste water usage, rates can be adjusted
downward on a tiered scale.
ELECTRIC SUPPLY SOURCE
The City has multiple Power Purchase Agreements (PPAs) in order to meet its load requirements. The PPAs are currently with AEPEP (AEP
Energy Partners) and Garland Power and Light (GP&L). With AEPEP, the City has fixed block ATC PPA that expires in 2027. The City
also has a PPA with AEPEP for wind power that expires in 2028. The City has a load following PPA with GP&L that expires in 2021. While
the PPAs with AEPEP are considered base load power, the load following PPA with GP&L covers the load above the base power provided
by AEPEP's PPAs. GP&L is also the City’s Qualified Scheduling Entity (QSE). GP&L's QSE schedules and settles all the contract resources
owned by the City. On City's advice the QSE also procures any replacement power as needed on behalf of the City.
Other wholesale/power supply costs include Congestion costs, Ancillary Services and Transmission Cost of Service (TCOS). Since the City
owns transmission assets, it not only pays but also receives TCOS payments based on TCOS rates approved by the Public Utility Commission
of Texas.
The City owns 20 miles of 138kV transmission lines, seven substations, and 458 miles of distribution lines. ERCOT servesas the RTO/ISO
for the area.
The current electric rates were established by ordinance passed and approved by the City Council and became effective on October 1, 2016.
The electric rates are subject to a transmission delivery adjustment (TDA) charge which requires that the net energy charge per kilowatt hour
must be increased or decreased by an amount per kilowatt hour equal to additional transmission charges above those accounted for in the
wholesale rate. The TDA is currently set at $0.005 per kilowatt hour of energy consumed.
In January 2009, College Station Utilities began offering residential electric customers renewable wind energy. In February 2010, the
renewable wind energy program was expanded to include commercial customers. Wind energy is generated from the South Trent Mesa Wind
Project located west of Abilene, Texas.
24
Single Family Residential ........................... Service Charge .............................................. $7.00 per month
plus:
kWh (May through October) ........................ $0.1169 per kWh
kWh (November through April) ................... $0.1123 per kWh
Tax ................................................................. 1.50%
Transmission Delivery Adjustment (TDA) .. $0.005 per kWh
Master Metered Multiple Dwelling Units . Service Charge ............................................... $100.00 per month per master meter
plus:
kWh (May through October) ......................... $0.1181 per kWh
kWh (November through April) .................... $0.1134 per kWh
Tax .................................................................. 1.50%
TDA ................................................................ $0.005 per kWh
Small Commercial (1-10 KW demand) ..... Service Charge ............................................... $9.00 per month
plus:
First 1,000 kWh ............................................. $0.1344 per kWh
Over 1,000 kWh ............................................ $0.1028 per kWh
Tax ................................................................. 8.25%
TDA ............................................................... $0.005 per kWh
Medium Commercial (15-300 KW) .......... Service Charge ............................................... $25.00 per month
plus:
Demand Charge (Per KW) ............................ $10.40 per KW
Energy Charge All kWh ................................ $0.0729 per KW
Minimum Monthly Charge ........................... $181.00
Tax ................................................................. 8.25%
TDA ............................................................... $0.005 per kWh
Large Commercial (300 – 1,500 KW) ....... Service Charge ............................................... $75.00 per month
plus:
Demand Charge (Per KW) ............................ $10.40 per KW
Energy Charge All kWh ................................ $0.0703 per KW
Minimum Monthly Charge ........................... $3,195.00
Tax ................................................................. 8.25%
TDA ............................................................... $0.005 per kWh
Industrial (1,500 KW and over) ................. Service Charge ............................................... $250.00 per month
plus:
Demand Charge (Per KW) ............................. $9.85
Energy Charge (first 500,000 kWh) .............. $0.0689 per KW
Minimum Monthly $15,034.85
Tax .................................................................. 8.25%
TDA ................................................................ $0.005 per kWh
WIND WATT RATES
Wind rates were established by Ordinance #2012-3397 on February 23, 2012, passed and approved by the City Council, and became effective
on March 1, 2012.
Participation Level: Residential & Commercial
10% ..................................................................... $0.0005 per KW
50% ..................................................................... $0.0025 per KW
100% ................................................................... $0.005 per KW
25
TABLE 14 - HISTORICAL UTILITY USERS (UNITS SERVED)
TABLE 15 - TEN LARGEST UTILITY CUSTOMERS
TABLE 16 - CONDENSED STATEMENT OF OPERATIONS
2017 2016 2015 2014 2013
Water 43,199 41,709 41,540 40,768 40,767
Wastewater 42,840 40,866 40,806 39,128 38,608
Electric 39,300 40,141 43,471 38,198 38,456
Fiscal Year Ended September 30,
Total Percent
FY 2017 KWH of KWH
Utility Customer Type of Business Consumption Consumed
CSISD Schools 24,723,977 2.95%
Scott & White Clinc/Hospital/Pharmacy 22,420,785 2.68%
City of College Station Municipality 22,073,366 2.63%
Texas A&M University 12,840,933 1.53%
Wal-Mart Retail 9,045,760 1.08%
College Station Medical Center Hospital 8,903,407 1.06%
CBL & Associates Retail Mall 8,880,320 1.06%
HEB Grocery Retail 8,465,040 1.01%
Biotechnologies Texas LLC Medical 7,948,100 0.95%
Dealer Computer Services Inc Retail 4,581,200 0.55%
129,882,888 15.50%
2017 2016 2015 2014 2013
Revenues:
Electric 99,179,570 $ 98,904,688 $ 98,763,293 $ 95,677,765 $ 92,892,541 $
Water and Wastewater 31,333,922 29,484,851 28,732,968 27,550,262 29,018,108
Interest 697,655 346,312 180,423 116,433 170,062
Other 3,179,821 3,636,420 3,546,138 2,890,061 3,670,710
Total Revenues 134,390,968 $ 132,372,271 $ 131,222,822 $ 126,234,521 $ 125,751,421 $
Expenses:
Total Expenses 78,766,516 $ 76,771,094 $ 82,079,813 $ 100,235,329 $ 90,519,871 $
Net Available for Debt Service 55,624,452 $ 55,601,177 $ 49,143,009 $ 25,999,192 $ 35,231,550 $
Water (Units Served)43,199 41,709 41,540 40,768 40,767
Wastewater (Units Served)42,840 40,866 40,806 39,128 38,608
Electric (Units Served)39,300 40,141 43,471 38,198 38,456
For Fiscal Year Ended September 30,
26
TABLE 17 – VALUE OF THE SYSTEM
TABLE 18 – CITY’S EQUITY IN THE SYSTEM
__________
(1) Includes OPEB Net Pension Obligations.
2017 2016 2015 2014 2013
Utility Systems 553,774,054$ 527,435,531$ 507,758,485$ 459,071,713$ 446,518,318$
Construction in Progress 30,240,705 23,520,025 13,213,020 43,281,736 36,982,355
584,014,759$ 550,955,556$ 520,971,505$ 502,353,449$ 483,500,673$
Less: Accumulated Depreciation 229,374,628 213,325,487 198,339,390 183,756,067 171,069,875
Net System Value 354,640,131$ 337,630,069$ 322,632,115$ 318,597,382$ 312,430,798$
Fiscal Year Ended September 30,
Resources 2017 2016 2015 2014 2013
Net System Value 354,640,131$ 337,630,069$ 322,632,115$ 318,597,382$ 312,430,798$
Current Assets 70,636,223 63,085,837 52,023,881 42,939,476 59,428,776
Restricted Assets 30,149,917 21,849,829 19,977,038 27,760,893 5,757,167
Other Resources - - - 0 120,000
Deferred Charges 5,197,104 5,425,502 2,381,933 1,305,356 1,665,943
Total 460,623,375$ 427,991,237$ 397,014,967$ 390,603,107$ 379,402,684$
Obligations
Current Liabilities 10,681,761$ 9,511,319$ 13,688,841$ 19,092,357$ 23,329,045$
Current Liabilities Payable from
Restricted Assets 15,887,617 15,462,903 10,735,825 7,292,731 7,190,577
General Obligation Debt 59,325,710 55,626,759 43,175,000 47,995,000 36,930,000
Certificates of Obligation 77,282,370 78,814,496 83,445,000 87,210,000 66,695,000
Revenue Bond Debt - - 13,395,000 14,920,000 34,765,000
Other Debt (1)8,899,938 9,418,425 8,593,734 9,385,034 4,825,184
Total Liabilities 172,077,396$ 168,833,902$ 173,033,400$ 185,895,122$ 173,734,806$
City's Equity in System 288,545,979$ 259,157,335$ 223,981,567$ 204,707,985$ 205,667,878$
Percentage of Equity in System 62.64%60.55%56.42%52.41%54.21%
Fiscal Year Ended September 30,
27
TABLE 19 – UTILITY REVENUE BOND AND SYSTEM SUPPORTED CERTIFICATE DEBT SERVICE
__________
* Preliminary, subject to change. Includes a portion of the Certificates.
(1) Represents refunding bonds.
(2) Certificates of Obligation supported in whole or in part by Utility System revenues.
(3) General Obligation Improvement Bonds supported in part by the Utility System revenues.
INVESTMENTS
The City invests its investable funds in investments authorized by Texas law in accordance with investment policies approved by the City
Council. Both state law and the City’s investment policies are subject to change.
LEGAL INVESTMENTS
Under State law, the City is authorized to invest in: (1) obligations of the United States or its agencies and instrumentalities, including letters
of credit; (2) direct obligations of the State or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a
federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the
United States; (4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by, or backed by the full
faith and credit of, the State or the United States or their respective agencies and instrumentalities, including obligations that are fully
guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States; (5) obligations
of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized
investment rating firm not less than A or its equivalent; (6) bonds issued, assumed, or guaranteed by the State of Israel; (7) certificates of
deposit and share certificates (i) issued by a depository institution that has its main office or a branch office in the State of Texas, that are
guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to
principal by obligations described in clauses (1) through (6) or in any other manner and amount provided by law for City deposits, or (ii)
where (a) the funds are invested by the City through (I) a broker that has its main office or a branch office in the State of Texas and is selected
from a list adopted, at least annually, by the City as required by law or (II) a depository institution that has its main office or a branch office
in the State of Texas that is selected by the City; (b) the broker or the depository institution selected by the City arranges for the deposit of
the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the City; (c)
the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality
of the United States, and (d) the City appoints the depository institution selected under (a) above, a custodian as described by Section
2257.041(d) of the Texas Government Code, or a clearing broker-dealer registered with the Securities and Exchange Commission and
operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the City with respect
to the certificates of deposit; (8) fully collateralized repurchase agreements that have a defined termination date, are fully secured by a
combination of cash and obligations described in clause (1) which are pledged to the City, held in the City’s name, and deposited at the time
the investment is made with the City or with a third party selected and approved by the City and are placed through a primary government
securities dealer, as defined by the Federal Reserve, or a financial institution doing business in the State of Texas; (9) bankers’ acceptances
Original Outstanding
Principal Principal
Amount as of 9/30/2017
2008 (2)15,925,000 2,340,000
2009 (2)19,490,000 3,700,000
2010 (2)2,850,000 2,120,000
2010 (1)(3)25,905,000 12,400,000
2011 (2)7,920,000 6,205,000
2012 (2)16,415,000 13,355,000
2012 (1)(3)9,570,000 5,430,000
2013 (2)10,230,000 8,735,000
2013 (1)(3)6,255,000 4,185,000
2014 (2)23,555,000 20,955,000
2014 (1)(3)14,455,000 9,475,000
2016 (2)7,250,000 6,985,000
2016 (1)(3)18,710,000 17,960,000
2017 (2)12,140,000 12,140,000
2017 (1)(3)9,205,000 9,205,000
2018 (2)18,935,000 18,935,000 *
218,810,000 $ 154,125,000 $
Series
28
with the remaining term of 270 days or less, if the short-term obligations of the accepting bank or its parent are rated at least “A-1” or “P-1”
or the equivalent by at least one nationally recognized credit rating agency; (10) commercial paper that is rated at least “A-1” or “P-1” or the
equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit rating agency if the paper is
fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state; (11)
no-load money market mutual funds regulated by the Securities and Exchange Commission that have a dollar weighted average portfolio
maturity of 90 days or less and include in their investment objectives the maintenance of a stable net asset value of $1 for each share; (12)
no-load mutual funds registered with the Securities and Exchange Commission that: have an average weighted maturity of less than two
years; invests exclusively in obligations described in the preceding clauses; and are continuously rated as to investment quality by at least
one nationally recognized investment rating firm of not less than “AAA” or its equivalent; provided, however, that the City is not authorized
to invest in the aggregate more than 15% of its monthly average fund balance, excluding bond proceeds and reserves and other funds held
for debt service, in such no-load mutual funds, and (13) for bond proceeds, guaranteed investment contracts that have a defined termination
date, are secured by obligations of the United States or its agencies and instrumentalities in an amount equal to the amount invested under
the contract, and are pledged to the City and deposited with the City or a third party selected and approved by the City.
The City is also authorized to invest its funds through an eligible investment pool if the governing body of the City by rule, ordinance, or
resolution, as appropriate, authorizes investment in the particular pool. To be eligible to receive funds from and invest funds on behalf of the
City, an investment pool must furnish to the investment officer or other authorized representative of the City an offering circular or other
similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is allowed
to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum
stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of
the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; (8)
whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only
source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees,
and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements
to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for
the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar-
weighted maturities, and expense ratios.
Governmental bodies in the State are authorized to implement securities lending programs if (i) the securities loaned under the program are
100% collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either secured
by (a) obligations that are described in clauses (1) through (6) of the first paragraph under this subcaption, (b) irrevocable letters of credit
issued by a state or national bank that is continuously rated by a nationally recognized investment rating firm not less than “A” or its
equivalent, or (c) cash invested in obligations that are described in clauses (1) through (6) and (10) through (12) of the first paragraph under
this subcaption, or an authorized investment pool; (ii) securities held as collateral under a loan are pledged to the governmental body, held in
the name of the governmental body and deposited at the time the investment is made with the City or a third party designated by the City;
(iii) a loan made under the program is placed through either a primary government securities dealer or a financial institution doing business
in the State; and (iv) the agreement to lend securities has a term of one year or less.
The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided that
the pools are rated no lower than “AAA” or “AAAm” or an equivalent by at least one nationally recognized rating service. The City is
specifically prohibited from investing in: (1) obligations whose payment represents the coupon payments on the outstanding principal balance
of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose payment represents the principal stream
of cash flow from the underlying mortgage-backed security and bears no interest; (3) collateralized mortgage obligations that have a stated
final maturity of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that
adjusts opposite to the changes in a market index.
INVESTMENT POLICIES
Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and
liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a
list of authorized investments for City funds, maximum allowable stated maturity of any individual investment and the maximum average dollar-
weighted maturity allowed for pooled fund groups, methods to monitor the market price of investments acquired with public funds, a requirement
for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis, and procedures to monitor
rating changes in investments acquired with public funds and the liquidation of such investments consistent with the PFIA. All City funds must
be invested consistent with a formally adopted “Investment Strategy Statement” that specifically addresses each funds’ investment. Each
Investment Strategy Statement will describe its objectives concerning (1) suitability of investment type, (2) preservation and safety of principal,
(3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield.
29
Under Texas law, City investments must be made “with judgment and care, under prevailing circumstances, that a person of prudence,
discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering
the probable safety of capital and the probable income to be derived.” At least quarterly the investment officers of the City will submit an
investment report detailing (1) the investment position of the City, (2) that all investment officers jointly prepared and signed the report, (3)
the beginning market value and ending market value for each pooled fund group, (4) the book value and market value of each separately
listed asset at the end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or pooled fund
group for which each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to: (a) adopted
investment strategy statements and (b) state law. No person may invest City funds without express written authority from the City Council.
ADDITIONAL PROVISIONS
Under Texas law the City is additionally required to: (1) annually review its adopted policies and strategies; (2) require any investment officers’
with personal business relationships or relatives with firms seeking to sell securities to the entity to disclose the relationship and file a
statement with the Texas Ethics Commission and the City Council; (3) require the registered principal of firms seeking to sell securities to
the City to: (a) receive and review the City’s investment policy, (b) acknowledge that reasonable controls and procedures have been
implemented to preclude imprudent investment activities, and (c) deliver a written statement attesting to these requirements; (4) perform an
annual audit of the management controls on investments and adherence to the City’s investment policy; (5) provide specific investment
training for the Finance Director, Treasurer, Assistant City Manager and investment officers; (6) restrict reverse repurchase agreements to
not more than 90 days and restrict the investment of reverse repurchase agreement funds to no greater than the term of the reverse repurchase
agreement; (7) restrict the investment in non-money market mutual funds of any portion of bond proceeds, reserves and funds held for debt
service and to no more than 15% of the entity’s monthly average fund balance, excluding bond proceeds and reserves and other funds held
for debt service; (8) require local government investment pools to conform to the new disclosure, rating, net asset value, yield calculation,
and advisory board requirements and (9) at least annually review, revise, and adopt a list of qualified brokers that are authorized to engage
in investment transactions with the City.
Under Texas law, the City may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15
U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other
funds under its control for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or
extend such a contract, the City must do so by order, ordinance or resolution. The City has not contracted with, and has no present intention
of contracting with, any such investment management firm or the State Securities Board to provide such services.
CITY’S INVESTMENT POLICY
The Assistant City Manager or his designee will promptly cause all City funds to be deposited with the bank depository and invested in
accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument that the City Council has authorized
under the provisions of the PFIA, as amended, and in accordance with the City Council approved Investment Policies.
At the end of each fiscal year, a report on investment performance will be provided to the City Council. In conjunction with the quarterly
financial report, the Assistant City Manager or his designee will prepare and provide a written recapitulation of the City’s investment portfolio
to the Council, detailing each City investment instrument with its rate of return and maturity date.
The City's adopted investment policy permits the City to invest its funds and funds under its control in all of the enumerated investments
authorized by the PFIA.
TABLE 20 - CURRENT INVESTMENTS
As of February 28, 2018, the City’s investable funds were invested in the following categories:
Book Market
Investment Type Value Value
Cash 5,000,000 $ 5,000,000 $
Local Government Investment Pool 8,245,491 8,245,491
Money Market Mutual Fund 223,103,678 223,103,678
US Agencies and Securities 41,000,000 40,552,860
277,349,169$ 276,902,029$
30
TAX MATTERS
OPINION
On the date of initial delivery of the Certificates, McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel, will render its opinion
that, in accordance with statutes, regulations, published rulings and court decisions existing on the date thereof (“Existing Law”), (1) interest
on the Certificates for federal income tax purposes will be excludable from the “gross income” of the holders thereof and (2) the Certificates
will not be treated as “specified private activity bonds” the interest on which would be included as an alternative minimum tax preference
item under section 57(a)(5) of the Internal Revenue Code of 1986 (the “Code”). Except as stated above, Bond Counsel will express no
opinion as to any other federal, state or local tax consequences of the purchase, ownership or disposition of the Certificates. See Appendix
C - FORMS OF OPINIONS OF BOND COUNSEL.
In rendering its opinions, Bond Counsel will rely upon (a) certain information and representations of the City, including information and
representations contained in the City's federal tax certificate, and (b) covenants of the City contained in the Ordinance authorizing the
Certificates relating to certain matters, including arbitrage and the use of the proceeds of the Certificates and the property financed or
refinanced therewith. Failure of the City to comply with these representations or covenants could cause the interest on the Certificates, as
the case may be, to become includable in gross income retroactively to their date of issuance.
The Code and the regulations promulgated thereunder contain a number of requirements that must be satisfied subsequent to the issuance of the
Certificates in order for interest on the Certificates to be, and to remain, excludable from gross income for federal income tax purposes. Failure
to comply with such requirements may cause interest on the Certificates to be included in gross income retroactively to the date of issuance of
the Certificates. The opinions of Bond Counsel are rendered in reliance upon the compliance by the City with such requirements, and Bond
Counsel has not been retained to monitor compliance with these requirements subsequent to the issuance of the Certificates.
Bond Counsel's opinions are not a guarantee of a result, but represent its legal judgment based upon its review of Existing Law and reliance
on the aforementioned information, representations and covenants. Existing Law is subject to change by the Congress and to subsequent
judicial and administrative interpretation by the courts and the Department of the Treasury. There can be no assurance that Existing Law or
the interpretation thereof will not be changed in a manner which would adversely affect the tax treatment of the purchase, ownership or
disposition of the Certificates.
A ruling was not sought from the Internal Revenue Service by the Issuer with respect to the Certificates or the property financed or refinanced
with proceeds of the Certificates. No assurances can be given as to whether the Internal Revenue Service will commence an audit of the
Certificates, or as to whether the Internal Revenue Service would agree with the opinion of Bond Counsel. If an Internal Revenue Service audit
is commenced, under current procedures the Internal Revenue Service is likely to treat the Issuer as the taxpayer and the Certificate holders may
have no right to participate in such procedure. No additional interest will be paid upon any determination of taxability.
FEDERAL INCOME TAX ACCOUNTING TREATMENT OF ORIGINAL ISSUE DISCOUNT
The initial public offering price to be paid for one or more maturities of the Certificates may be less than the principal amount thereof or one or more periods for the payment of interest on the Certificates may not be equal to the accrual period or be in excess of one year (the “Original
Issue Discount Certificates”). In such event, the difference between (i) the “stated redemption price at maturity” of each Original Issue
Discount Certificate, and (ii) the initial offering price to the public of such Original Issue Discount Certificate would constitute original issue
discount. The “stated redemption price at maturity” means the sum of all payments to be made on the Certificates less the amount of all
periodic interest payments. Periodic interest payments are payments which are made during equal accrual periods (or during any unequal
period if it is the initial or final period) and which are made during accrual periods which do not exceed one year.
Under Existing Law, any owner who has purchased such Original Issue Discount Certificate in the initial public offering is entitled to exclude
from gross income (as defined in section 61 of the Code) an amount of income with respect to such Original Issue Discount Certificate equal
to that portion of the amount of such original issue discount allocable to the accrual period. For a discussion of certain collateral federal tax
consequences, see discussion set forth below.
In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Certificate prior to stated maturity, however,
the amount realized by such owner in excess of the basis of such Original Issue Discount Certificate in the hands of such owner (adjusted
upward by the portion of the original issue discount allocable to the period for which such Original Issue Discount Certificate was held by
such initial owner) is includable in gross income.
Under Existing Law, the original issue discount on each Original Issue Discount Certificate is accrued daily to the stated maturity thereof (in
amounts calculated as described below for each accrual period within each accrual period) and the accrued amount is added to an initial
owner's basis for such Original Issue Discount Certificate for purposes of determining the amount of gain or loss recognized by such owner
upon the redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (a) the sum of the
issue price and the amount of original issue discount accrued in prior periods multiplied by the yield to stated maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less (b) the amounts
payable as current interest during such accrual period on such Original Issue Discount Certificate.
The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of Original Issue Discount Certificates
which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ from those
described above. All owners of Original Issue Discount Certificates should consult their own tax advisors with respect to the determination
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for federal, state and local income tax purposes of the treatment of interest accrued upon redemption, sale or other disposition of such Original Issue Discount Certificates and with respect to the federal, state, local and foreign tax consequences of the purchase, ownership, redemption,
sale or other disposition of such Original Issue Discount Certificates.
COLLATERAL FEDERAL INCOME TAX CONSEQUENCES
The following discussion is a summary of certain collateral federal income tax consequences resulting from the purchase, ownership or
disposition of the Certificates. This discussion is based on Existing Law, which is subject to change or modification, retroactively.
The following discussion is applicable to investors, other than those who are subject to special provisions of the Code, such as financial
institutions, property and casualty insurance companies, life insurance companies, individual recipients of Social Security or Railroad
Retirement benefits, individuals allowed an earned income credit, certain S corporations with accumulated earnings and profits and excess
passive investment income, foreign corporations subject to the branch profits tax, taxpayers qualifying for the health insurance premium
credit and taxpayers who may be deemed to have incurred or continued indebtedness to purchase tax-exempt obligations.
THE DISCUSSION CONTAINED HEREIN MAY NOT BE EXHAUSTIVE. INVESTORS, INCLUDING THOSE WHO ARE SUBJECT
TO SPECIAL PROVISIONS OF THE CODE, SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT
WHICH MAY BE ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX-EXEMPT
OBLIGATIONS BEFORE DETERMINING WHETHER TO PURCHASE THE CERTIFICATES.
Under section 6012 of the Code, holders of tax-exempt obligations, such as the Certificates, may be required to disclose interest received or
accrued during each taxable year on their returns of federal income taxation.
Section 1276 of the Code provides for ordinary income tax treatment of gain recognized upon the disposition of a tax-exempt obligation,
such as the Certificates, if such obligation was acquired at a “market discount” and if the fixed maturity of such obligation is equal to, or
exceeds, one year from the date of issue. Such treatment applies to “market discount bonds” to the extent such gain does not exceed the
accrued market discount of such bonds; although for this purpose, a de minimis amount of market discount is ignored. A “market discount
bond” is one which is acquired by the holder at a purchase price which is less than the stated redemption price at maturity or, in the case of a
bond issued at an original issue discount, the “revised issue price” (i.e., the issue price plus accrued original issue discount). The “accrued
market discount” is the amount which bears the same ratio to the market discount as the number of days during which the holder holds the
obligation bears to the number of days between the acquisition date and the final maturity date.
STATE, LOCAL AND FOREIGN TAXES
Investors should consult their own tax advisors concerning the tax implications of the purchase, ownership or disposition of the Certificates
under applicable state or local laws. Foreign investors should also consult their own tax advisors regarding the tax consequences unique to
investors who are not United States persons.
Subject to certain exceptions, information reports describing interest income, including original issue discount, with respect to the Certificates
will be sent to each registered holder and to the Internal Revenue Service. Payments of interest and principal may be subject to backup
withholding under section 3406 of the Code if a recipient of the payments fails to furnish to the payor such owner's social security number
or other taxpayer identification number ("TIN"), furnishes an incorrect TIN, or otherwise fails to establish an exemption from the backup
withholding tax. Any amounts so withheld would be allowed as a credit against the recipient's federal income tax. Special rules apply to
partnerships, estates and trusts, and in certain circumstances, and in respect of Non-U.S. Holders, certifications as to foreign status and other
matters may be required to be provided by partners and beneficiaries thereof.
INFORMATION REPORTING AND BACKUP WITHHOLDING
Subject to certain exceptions, information reports describing interest income, including original issue discount, with respect to the Certificates
will be sent to each registered holder and to the IRS. Payments of interest and principal may be subject to backup withholding under section
3406 of the Code if a recipient of the payments fails to furnish to the payor such owner’s social security number or other taxpayer identification
number (“TIN”), furnishes an incorrect TIN, or otherwise fails to establish an exemption from the backup withholding tax. Any amounts so
withheld would be allowed as a credit against the recipient’s federal income tax. Special rules apply to partnerships, estates and trusts, and
in certain circumstances, and in respect of Non-U.S. Holders, certifications as to foreign status and other matters may be required to be
provided by partners and beneficiaries thereof.
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FUTURE AND PROPOSED LEGISLATION
Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the federal or state level, may adversely affect
the tax-exempt status of interest on the Certificates under federal or state law, and could affect the market price or marketability of the
Certificates. Any of the foregoing could limit the value of certain deductions and exclusions, including the exclusion for tax-exempt interest.
The likelihood of any of the foregoing becoming effective cannot be predicted. Prospective purchasers of the Certificates should consult
their own tax advisors regarding the foregoing matters.
CONTINUING DISCLOSURE OF INFORMATION
In the Ordinance, the City has made the following agreement for the benefit of the holders and beneficial owners of Certificates. The City is
required to observe the agreement for so long as it remains obligated to advance funds to pay the Certificates. Under the agreement, the City
will be obligated to provide certain updated financial information and operating data annually, and timely notice of specified events, to the
Municipal Securities Rulemaking Board (the “MSRB”). This information will be publicly available at no cost on the Electronic Municipal
Market Access of the MSRB, with the web address www.emma.msrb.org (“EMMA”). The agreement specifies that all documents provided
to the MSRB shall be accompanied by identifying information as prescribed by the MSRB.
ANNUAL REPORTS
The City will provide certain updated financial information and operating data to the MSRB on an annual basis in an electronic format that
is prescribed by the MSRB and available via the Electronic Municipal Market Access System ("EMMA") at www.emma.msrb.org. The
information to be updated includes all quantitative financial information and operating data with respect to the City of the general type
included in this Official Statement under Tables numbered 1 through 6; 8 through 20 and in Appendix B. The City will update and provide
the information in Tables 1 through 6 and 8 through 20 within six months after the end of each fiscal year ending in and after 2018. The City
will additionally provide audited financial statements when and if available, and in any event, within 12 months after the end of each fiscal
year ending in or after 2018. If the audit of such financial statements is not complete within 12 months after any such fiscal year end, then
the City will file unaudited financial statements within such 12 month period and audited financial statements for the applicable fiscal year,
when and if the audit report on such statements becomes available. Any such financial statements will be prepared in accordance with the
accounting principles described in Appendix B or such other accounting principles as the City may be required to employ from time to time
pursuant to State law or regulation.
The financial information and operating data to be provided may be set forth in full in one or more documents or may be included by specific
reference to any document available to the public on the MSRB’s Internet Web site identified below or filed with the United States Securities
and Exchange Commission (the "SEC"), as permitted by SEC Rule 15c2-12 (the "Rule").
The City’s current fiscal year end is September 30. Accordingly, the City must provide updated information included in 1 through 6 and 8
through 20 by the last day of March in each year, and audited financial statements for the preceding fiscal year (or unaudited financial
statements if the audited financial statements are not yet available) as described above. If the City changes its fiscal year, it will file notice of
the change (and of the date of the new fiscal year end) with the MSRB prior to the next date by which the City otherwise would be required
to provide financial information and operating data as set forth above.
EVENT NOTICES
The City will also provide timely notices of certain events to the MSRB. The City will provide notice of any of the following events with
respect to the Certificates to the MSRB in a timely manner (but not in excess of ten business days after the occurrence of the event): (1)
principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves
reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or
liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the
tax status of the Certificates, or other material events affecting the tax status of the Certificates; (7) modifications to rights of holders of the
Certificates, if material; (8) Certificate calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property
securing repayment of the Certificates, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership, or similar event of the
City, which shall occur as described below; (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale
of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such
an action or the termination of a definitive agreement relating to any suchactions, other than pursuant to its terms, if material; and (14)
appointment of a successor or additional paying agent or the change of name of a paying agent, if material. In addition, the City will provide
timely notice of any failure by the City to provide annual financial information in accordance with their agreement described above under
“Annual Reports”. For these purposes, any event described in clause (12) is considered to occur when any of the following occur: the
appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any
other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the
assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in
possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of
the assets or business of the City.
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The City will provide each notice described in the previous paragraph to the MSRB through EMMA, in accordance with the Rule.
LIMITATIONS AND AMENDMENTS
The City has agreed to update information and to provide notices of specified events only as described above. The City has not agreed to
provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or
prospects or agreed to update any information that is provided, except as described above. The City makes no representation or warranty
concerning such information or concerning its usefulness to a decision to invest in or sell Certificates at any future date. The City disclaims
any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any
statement made pursuant to its agreement, although holders of Certificates may seek a writ of mandamus to compel the City to comply with
its agreement.
The City may amend its continuing disclosure agreement from time to time to adapt to changed circumstances that arise from a change in
legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, if (i) the agreement, as
amended, would have permitted an underwriter to purchase or sell Certificates in the offering described herein in compliance with the Rule,
taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances,
and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Certificates consent to the amendment or (b) any
person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will not materially impair the
interests of the holders and beneficial owners of the Certificates. If the City so amends the agreement, it has agreed to include with the next
financial information and operating data provided in accordance with its agreement described above under “ANNUAL REPORTS” an
explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information and
operating data so provided.
COMPLIANCE WITH PRIOR UNDERTAKINGS
In connection with prior transactions, the City has entered into undertakings pursuant to which it agreed to provide certain updated financial
information and operating data within six months of the end of the City’s fiscal year along with notices of specified material events at required
times. In addition, the City previously agreed to provide audited financial statements within six months of the end of the City’s fiscal year if
audited financial statements were available by such time. If audited financial statements were not available, the City agreed to provide
unaudited financial statements for the applicable fiscal year.
During the last five years, the City has not failed to comply in any material respect with any material provisions of the continuing disclosure
agreements made by the City in accordance with Rule 15c2-12.
OTHER INFORMATION
RATINGS
The Certificates and presently outstanding tax supported debt of the City are rated “__” by Moody's and “__” by S&P, without regard to
credit enhancement. The ratings reflect only the respective views of such organizations and the City makes no representation as to the
appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be
revised downward or withdrawn entirely by either or both of such rating companies, if in the judgment of either or both companies,
circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the
market price of the Certificates.
LITIGATION
The City is a party to legal proceedings, many of which occur in the normal course of operations. It is not possible at the present time to
estimate ultimate outcome or liability, if any, of the city with respect to the various proceedings. The City’s management believes that the
ultimate outcome of the various lawsuits will not have a material adverse effect on the City’s financial position.
REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE
The sale of the Certificates has not been registered under the federal Securities Act of 1933, as amended, in reliance upon the exemption
provided thereunder by Section 3(a)(2); and the Certificates have not been qualified under the Securities Act of Texas in reliance upon various
exemptions contained therein; nor have the Certificates been qualified under the securities acts of any jurisdiction. The City assumes no
responsibility for qualification of the Certificates under the securities laws of any jurisdiction in which the Certificates may be sold, assigned,
pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the
Certificates must not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration
provisions.
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LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS
Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Certificates are negotiable
instruments, investment securities governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized investments
for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or public agencies
of the State of Texas. With respect to investment in the Certificates by municipalities or other political subdivisions or public agencies of
the State of Texas, the PFIA requires that the Certificates be assigned a rating of at least “A” or its equivalent as to investment quality by a
national rating agency. See “OTHER INFORMATION - RATINGS” herein. In addition, various provisions of the Texas Finance Code
provide that, subject to a prudent investor standard, the Certificates are legal investments for state banks, savings banks, trust companies with
at capital of one million dollars or more, and savings and loan associations. The Certificates are eligible to secure deposits of any public funds
of the State, its agencies, and its political subdivisions, and are legal security for those deposits to the extent of their market value. The City
has made no investigation of other laws, rules, regulations or investment criteria which might apply to such institutions or entities or which
might limit the suitability of the Certificates for any of the foregoing purposes or limit the authority of such institutions or entities to purchase
or invest in the Certificates for such purposes. No review by the City has been made of the laws in other states to determine whether the
Certificates are legal investments for various institutions in those states.
LEGAL OPINIONS
The City will furnish a complete transcript of proceedings incident to the authorization and issuance of the Certificates, including the
unqualified approving legal opinion of the Attorney General of Texas approving the Certificates and to the effect that the Certificates are
valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the legal opinion of Bond
Counsel, to like effect and to the effect that the interest on the Certificates will be excludable from gross income for federal income tax
purposes under section 103(a) of the Code, subject to the matters described under “TAX MATTERS” herein, including the alternative
minimum tax on corporations. In its capacity as Bond Counsel, McCall, Parkhurst & Horton L.L.P. has reviewed the information under the
captions “PLAN OF FINANCING” (except for the subsection “SOURCES AND USES OF PROCEEDS”), “THE CERTIFICATES,” “TAX
MATTERS,” “OTHER INFORMATION – LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS,” “OTHER
INFORMATION – REGISTRATION AND QUALIFICATION OF CERTIFICATES FOR SALE,” “OTHER INFORMATION – LEGAL OPINIONS,” and
“CONTINUING DISCLOSURE OF INFORMATION” (except under the subheading “COMPLIANCE WITH PRIOR UNDERTAKINGS”, as to
which no opinion is expressed) in the Official Statement to determine whether such information fairly summarized matters of law and the
provisions of the documents referred to therein, and Bond Counsel is of the opinion that the information relating to the Certificates and the
Ordinance contained under such captions is a fair and accurate summary of the information purported to be shown. The legal fee to be paid
to Bond Counsel for services rendered in connection with the issuance of the Certificates is contingent on the sale and delivery of the
Certificates. The legal opinion will accompany the Certificates deposited with DTC or will be printed on the Certificates in the event of the
discontinuance of the Book-Entry-Only System. Certain legal matters will be passed upon for the City by McCall, Parkhurst & Horton,
L.L.P., Dallas, Texas, Disclosure Counsel for the City. In connection with the transactions described in the Official Statement, Bond Counsel
represents only the City.
The various legal opinions to be delivered concurrently with the delivery of the Certificates express the professional judgment of the attorneys
rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not become an insurer
or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of the parties to the
transaction, nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction.
AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION
The financial data and other information contained herein have been obtained from City records, audited financial statements and other
sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized.
All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions
of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is
made to such documents for further information. Reference is made to original documents in all respects.
FINANCIAL ADVISOR
Hilltop Securities Inc. is employed as Financial Advisor to the City in connection with the issuance of the Certificates. The Financial
Advisor's fee for services rendered with respect to the sale of the Certificates is contingent upon the issuance and delivery of the Certificates.
Hilltop Securities Inc., in its capacity as Financial Advisor, has relied on the opinions of Bond Counsel and has not verified and does not
assume any responsibility for the information, covenants and representations contained in any of the legal documents with respect to the
federal income tax status of the Certificates, or the possible impact of any present, pending or future actions taken by any legislative or
judicial bodies.
The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the
City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the
Financial Advisor does not guarantee the accuracy or completeness of such information.
CERTIFICATION OF THE OFFICIAL STATEMENT AND NO-LITIGATION CERTIFICATE
At the time of payment for and delivery of the Certificates, the Initial Purchaser will be furnished a certificate, executed by the proper City
officials, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or
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pertaining to the City contained in its Official Statement and any addenda, supplement or amendment thereto, for its Certificates on the date
of such Official Statement, on the date of purchase of said Certificates, and on the date of delivery, were and are true and correct in all
material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does
not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and
statements, including financial data, of, or pertaining to, entities other than the City and their activities contained in such Official Statement
are concerned, such statements and data have been obtained from sources which the City believes to be reliable and that the City has no
reason to believe that they are untrue in any material respect; (d) there has been no material adverse change in the financial condition of the
City since September 30, 2017, the date of the last audited financial statements of the City and (e) except as disclosed herein, no litigation of
any nature has been filed or is pending, as of that date, of which the City has notice to restrain or enjoin the issuance, execution or delivery
of the Certificates, in any manner questioning the authority or proceedings for the issuance, execution, or delivery of the Certificates; or
which would affect the provisions made for their payment or security, or in any manner question the validity of the Certificates.
FORWARD-LOOKING STATEMENTS
The statements contained in this Official Statement, and in any other information provided by the City, that are not purely historical, are
forward-looking statements, including statements regarding the City's expectations, hopes, intentions, or strategies regarding the future.
Readers should not place undue reliance on forward-looking statements. All forward-looking statements included in this Official Statement
are based on information available to the City on the date hereof, and the City assumes no obligation to update any such forward-looking
statements. The City's actual results could differ materially from those discussed in such forward-looking statements.
The forward-looking statements included herein are necessarily based on various assumptions and estimates and are inherently subject to
various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates
and possible changes or developments in social, economic, business, industry, market, legal, and regulatory circumstances and conditions
and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and legislative,
judicial, and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect to, among
other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond the control of the City. Any of such assumptions could be inaccurate and, therefore, there
can be no assurance that the forward-looking statements included in this Official Statement will prove to be accurate.
INITIAL PURCHASER
After requesting competitive bids for the Certificates, the City accepted the bid of ______________ (the "Initial Purchaser of the Certificates")
to purchase the Certificates at the interest rates shown on the (inside) cover page of the Official Statement at a price of ______(%) of par plus
a cash premium of $____________. The Initial Purchaser of the Certificates can give no assurance that any trading market will be developed
for the Certificates after their sale by the City to the Initial Purchaser of the Certificates. The City has no control over the price at which the
Certificates are subsequently sold and the initial yield at which the Certificates will be priced and reoffered will be established by and will
be the responsibility of the Initial Purchaser of the Certificates.
MISCELLANEOUS
The Ordinance authorizing the issuance of the Certificates will also approve the form and content of this Official Statement, and any addenda
or amendment thereto, and authorize its further use in the reoffering of the Certificates by the Initial Purchaser.
Mayor
City of College Station, Texas
ATTEST:
City Secretary
City of College Station, Texas
APPENDIX A
GENERAL INFORMATION REGARDING THE CITY
A - 1
THE CITY
The City, located in Brazos County, is situated in the middle of a triangle bounded by Dallas/Fort Worth, Houston, and San
Antonio/Austin. Approximately 80% of the Texas population is located within a 200 mile radius of the City. In addition to being a
residential community for faculty, students and other personnel of Texas A&M University, the City also serves as a regional
manufacturing, retail and health care hub.
The City was incorporated in 1938 and has a Council-City Manager form of government with City employees totaling 1,001.50
currently.
The City adopted and enforces comprehensive zoning and building restrictions aimed at assuring orderly growth and development.
The City’s ordinances require all subdividers, at their own expense and without provision for refund, to install streets and water and
wastewater lines in any planned subdivision. These facilities are constructed under the City’s specifications and inspection and when
completed are deeded to the City free and clear. All areas within the City are now adequately served with water, wastewater and
electric service.
Proximity to three of the nation’s largest cities, college-town cultural amenities, low cost of living, varied housing options, warm
climate and low crime rate have resulted in significant population growth over the last decade.
CITY OWNED FACILITIES
The City maintains approximately 543 linear miles of streets within city limits, 99% of which are hard surface. The City has a
complete water distribution, wastewater collection and treatment system with 786 miles of wastewater and water lines. The City
owns the electrical distribution system with approximately 471 miles of distribution lines and 20 miles of 138kv transmission lines.
The City has a fully equipped police department with 144 full time police officers and 76 support personnel. The department has 70
police patrol cars and one holding facility with a capacity of 17. The fire department consists of 152 full time fire fighters and 8
support personnel. There are six stations and a total of 8 engines, 6 ambulances, 2 command vehicles, 1 rescue truck, 2 ladder trucks,
1 tanker truck, and 1 grass fire truck.
EDUCATIONAL FACILITIES
The College Station Independent School District (the “School District”) is a fully accredited system offering 17 educational campuses
for pre-kindergarten through high school. The School District has a student enrollment in excess of 12,500 and employs close to
1,700 people. On November 3, 2015 the voters passed a bond proposition for the School District that includes the construction of
three additional facilities. The bonds would fund a third intermediate school in the 2017-2018 school year and a third middle school
and tenth elementary school in the 2018-2019 school year. The School District’s facilities are also used by Blinn College, a
community college offering two years of college level courses.
College Station is home to Texas A&M University which provides higher education, offering both four year college programs and
graduate degree programs to over 66,000 enrolled students.
HEALTH CARE
College Station Medical Center, affectionately called ‘The Med’, is a 200,000 square foot community healthcare provider located
on 25 acres within the city limits of College Station. The Med is a 167-bed facility and is a licensed Level III Trauma unit. College
Station Medical Center is the only hospital in the Brazos Valley Region to receive national certification in joint replacement from
the Joint Commission. They are also an accredited Chest Pain Center, a certified Primary Stroke Center and the region’s first
accredited Sleep Center. The over 650 healthcare professionals work every day to be a place of healing, caring and connection for
patients and families in the community.
Rock Prairie Behavioral Health is a 72-bed state-of-the-art psychiatric hospital built specifically with patients’ needs in mind and is
dedicated to providing quality behavioral health care to promote growth and recovery for patients and families throughout the state
of Texas. The acute psychiatric hospital treats adolescents, adults, and seniors in both inpatient and outpatient settings. The
treatment facility is located in the heart of the Brazos Valley, conveniently located in College Station.
Baylor Scott & White Medical Center – College Station is a 403,000 square foot, five story, 143-bed hospital located on a 98 acre
campus near the intersection of Texas Highway 6 and Rock Prairie Road within the City of College Station. Baylor Scott & White
Medical Center – College Station is a nationally accredited Chest pain Center as well as a Level III Trauma Center. Scott & White
Clinic – Rock Prairie, a four-story medical office building, is also located on the campus adjacent to the hospital. Baylor Scott and
White Medical Center - College Station houses an emergency department, cardiac services including cath labs, neonatal intensive
care unit, comprehensive cancer services, operating rooms, maternity services suites, endoscopic procedure suites, intra operative
robotics and other specialty services, all supported by a pharmacy, comprehensive state-of-the-art imaging technology and other
diagnostic capabilities.
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Other area health care providers include: St. Joseph Regional Health Care Center, Baylor Scott and White Clinic, and The Physicians
Centre.
Medical District
The City recently amended its Comprehensive Plan to include the College Station Medical District Master Plan. The Master Plan
establishes guiding principles for the development of approximately 1,700 acres in south College Station to accommodate medical
facilities, walkable village centers, commercial space, and a variety of residential unit types, all in close proximity to parks, open space,
and trails. To ensure the long-term success of the District, the City has created a Tax Increment Reinvestment Zones to help fund the
necessary infrastructure. The City activated a Municipal Management District along the relatively undeveloped east side of State
Highway 6 to be used as a tool for development of these areas as well.
TRANSPORTATION
U.S. Highway 190/State Highway 21 links the City to Interstate 45 which is located approximately 35 miles to the east. State Highway
21 via U.S. Highway 290 also links the City to Austin, located approximately 110 miles to the west. State Highway 6 links the City to
Waco (100 miles) and Interstate 35 to the north and Houston (90 miles) to the south. Also, State Highway 30 links the City to Huntsville
(45 miles) and Interstate 45 to the east.
Airlines Commercial, corporate and private airport facilities are provided by Easterwood Airport, which is located
on the City’s west side and is owned and operated by Texas A&M University. American Eagle Airlines
provides daily flights to and from Dallas-Fort Worth Airport out of Easterwood. United Airlines provides
daily flights to and from Houston Bush Intercontinental Airport out of Easterwood. This airport recently
completed a $15 million renovation to the terminal.
Coulter Field is located north of the City of Bryan and provides a 4,000 foot lighted runway. Coulter Field
offers all types of services for the private aircraft.
Bus Lines Two bus lines serve the City with daily service connecting the City with Houston and Dallas.
Railroads Rail freight service is provided by the Union Pacific Railroad. Union Pacific Railroad operates a main freight
line from Houston through Bryan-College Station to Dallas-Fort Worth and beyond.
RECREATION
The College Station park system presently includes 58 parks encompassing 1448 acres, including a 515 acre wilderness park, and a 150-
acre regional athletic park. Collectively, these parks contain 63 playgrounds, 33 soccer fields, 26 basketball courts, 43 softball/baseball
backstops, 14 tennis courts, 3 swimming pools, a spray park, a skate park, a gymnasium, an outdoor amphitheater with a green room
and plaza area, 1 festival site and a number of picnic shelters and 8 picnic pavilions. The Parks and Recreation Department sponsors a
variety of organized athletic and aquatic programs as well as many special events throughout the year.
POPULATION
__________
(1) U.S. Census Bureau, American Community Survey
ECONOMIC BACKGROUND
Texas A&M University and System
Texas A&M opened its doors in 1876 as the state’s first public institution of higher learning. Located in College Station, Texas (about
90 miles northwest of Houston and within a two to three-hour drive from Austin and Dallas), Texas A&M’s main campus is home to
over 66,000 students, with more than 469,000 former students worldwide. As one of only 62 members of the prestigious Association
of American Universities (AAU), an association of leading public and private research universities in the United States and Canada,
Texas A&M boasts some of the top programs in academic research and scholarship. Texas A&M and the Texas A&M University
System employ more than 27,000 full and part-time personnel.
Texas A&M is one of only 17 institutions in the nation to hold the triple designation as a land-grant, sea-grant, and space-grant university.
In May 2016, the Chancellor of The Texas A&M University System unveiled plans to invest $150 million to create a new research and
development campus to help companies move ideas from the laboratory to the marketplace while also offering a new path toward a
1970 1980 1990 2000 2010
City of College Station 17,676 37,272 52,456 67,890 93,857
Brazos County 57,978 93,588 121,862 152,415 194,851
Official U.S. Census(1)
A - 3
college degree. The facility, to be located at a revamped and renamed Riverside Campus in Brazos County, initially will include a
cluster of seven new buildings and test beds to encourage the private sector to develop secure research facilities adjacent to the System’s
site. The facility, named the RELLIS Campus will focus on robotics, driverless and connected vehicles, advanced manufacturing, large-
scale testing as well as smart power grids and water systems.
George Bush Presidential Library and Museum
The City is the site of the George Bush Presidential Library and Museum, located on the campus of Texas A&M University. Texas
A&M provides programs and facilities such as research and instructional programs related to the library and museum, a conference
center, communications center, educational museum/library center, and family-oriented facilities such as a park surrounding the
presidential library and museum. The Presidential Library and Museum is also part of the George Bush Presidential Library Center
which is home to the prestigious Bush School of Government and Public Service.
Century Square
The City continues to experience a sustained period of growth. The growth has resulted in continued retail development, especially in
the Tower Point and Caprock developments in the southern part of the City with new restaurants and other businesses opening and
others under construction to serve the ever growing residential populations in that area of the City. However, that growth has expanded
to the north side of College Station where mixed-used facilities and additional hotels near the Texas A&M campus are under
construction.
One such development is Century Square. This 60-acre development creates a dynamic community center where people congregate
from across the region to experience a walkable, urban destination. The project features premier retail and restaurant establishments,
entertainment venues, 60,000 SF of Class-A office, two full-service hotels: The George and Cavalry Court, luxury apartment homes:
100 Park, and an activated central gathering space.
Athletics
Athletics is an integral part of College Station. Texas A&M University, along with the City, hosts a multitude of athletic events. Texas
A&M University is the home of Kyle Field, Reed Arena, Olsen Field at Bluebell Park, Aggie Softball Complex, George P. Mitchell
Tennis Center and Gilliam Indoor Track Stadium. Several of Texas A&M teams have won both conference and national titles over the
past five years with every university varsity level team competing in post-season play for the 2015-2016 season. This has positioned
the University to host regional payoffs as well as national championship games. Texas A&M’s move to the Southeastern Conference
(SEC) in 2012 has proved positive for the City. For the Texas A&M’s football team ranked third in the nation in average attendance
for both the 2015 and 2016 seasons, and fifth in the nation for the 2017 season, according to figures released by the NCAA.
For the 2016 season, A&M drew 101,917 fans per game last season at the rebuilt Kyle Field, trailing only Michigan (110,468) and Ohio
State (107,278). Capacity at Kyle Field is 102,512, the largest in the Southeastern Conference.
The City’s sport complexes as well as the ease to get around makes College Station attractive to several organizations. Over the past
several years, the Amateur Softball Association and the Texas Amateur Athletic Federation have chosen College Station to host state
tournaments and events. In addition, the City facilitates two major softball tournaments, a soccer tournament, a 7 on 7 flag football
tournament and baseball tournaments throughout the year. The City plans to add 2 additional synthetic athletic fields at Veterans Park
and Athletic Complex. This is anticipated to allow additional tournaments to be held in this area.
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MAJOR AREA EMPLOYERS
Source: Research Valley Partnership
Employment is provided by a variety of high growth industries located in, or adjacent to, the City which include ambulatory health care
services; professional, scientific, and technical services; specialty trade contractors; food manufacturing; administrative and support
services as identified in the Local Employment Dynamics data. Additionally College Station is also home to the 350 acre Research Park,
located on the Texas A&M University campus, which houses 30 public-private tenants including the Research Valley Partnership,
Schlumberger, Texas A&M Transportation Institute, and Offshore Technology Research Center. The City also developed the 200-acre,
Class “A” Business Center at College Station (BCCS), tenants of which include Reynolds and Reynolds Cognizant Technology Solution,
Suddenlink Media, Stata Corporation, Heat Transfer Research, Inc. (HTRI), and the Texas A&M University System. In addition, the
City has worked to develop a new Science Park at Research Valley, which currently houses Lynntech, Inc. and RBC Technologies.
Number of
Firm Name Product Employees
Texas A&M University System Education 27,000+
Bryan ISD Education 2,000 +
College Station ISD Education 2,000 +
Texas A &M Health Science Center Education 2,000 +
Reynolds & Reynolds IT 1,800 +
Blinn College Education 1,000 +
Sanderson Farms Food Manufacturing 1,000 +
CHI St . Joseph Health System Health Care 1,000 +
Walmart Retail 1,000 +
HEB Grocery Retail 1,000 +
City of College Station Government 1,000 +
Brazos County Government 500 - 999
City of Bryan Government 500 - 999
College Station Medical Center Health Care 500 - 999
Ply Gem Windows Manufacturing 500 - 999
Baylor Scott & White Health Health Care 500 - 999
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LABOR STATISTICS
College Station
Brazos County
Source: Texas Workforce Commission.
(1) Average as of February 28, 2018.
BUILDING PERMITS
College Station has grown rapidly over the past 30 years as evidenced by an increase in population from 37,272 in 1980 to 93,857 in
2010. As of 2018, the estimated population of College Station was 117,841. The following table sets forth the number and value of
construction permits issued by the City over the past several years.
Source: The City.
Labor Total
Force Employment Unemployment Rate
2013 51,136 48,665 2,471 4.8%
2014 52,028 49,945 2,083 4.0%
2015 52,739 51,023 1,716 3.3%
2016 55,788 53,913 1,875 3.4%
2017 58,145 56,364 1,781 3.1%
2018 (1)60,265 58,520 1,745 2.9%
Year
Labor Total
Force Employment Unemployment Rate
2013 103,089 98,074 5,015 4.9%
2014 104,334 100,180 4,154 4.0%
2015 105,935 102,343 3,592 3.4%
2016 110,420 106,643 3,777 3.4%
2017 113,424 109,948 3,476 3.1%
2018 (1)117,588 114,153 3,435 2.9%
Year
Residential Construction Commercial Construction Total
Number Number Number
of Permits Value of Permits Value of Permits Value
2008 1,131 164,494,779 $ 346 154,313,994 $ 1,477 318,808,773 $
2009 792 82,316,558 243 46,947,099 1,035 129,263,657
2010 860 93,158,066 309 162,053,510 1,169 255,211,576
2011 971 124,132,135 359 123,779,052 1,330 247,911,187
2012 1,208 149,737,218 325 67,478,910 1,533 217,216,128
2013 1,030 145,142,757 333 67,516,132 1,363 212,658,889
2014 1,167 211,909,494 338 67,570,229 1,505 279,479,723
2015 1,687 206,336,883 294 78,209,095 1,981 284,545,978
2016 1,802 325,247,597 424 207,892,402 2,226 533,139,999
2017 1,189 267,381,810 344 172,755,189 1,533 440,136,999
Calendar
Year
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COUNTY CHARACTERISTICS
Brazos County was created in 1841 from Robertson and Washington Counties. The economy is diversified primarily by agribusiness,
computer manufacturing, research and development, and education. The Texas Almanac designates cattle, hogs, sorghums, corn, cotton,
wheat, oats and pecans as the principal sources of agricultural income.
The County had a 2010 population of 194,851, an increase of 27.8% since 2000. Minerals produced in the County include sand and
gravel, lignite, gas and oil.
[Remainder of Page Intentionally Left Blank]
APPENDIX B
EXCERPTS FROM THE
CITY OF COLLEGE STATION, TEXAS
ANNUAL FINANCIAL REPORT
For the Year Ended September 30, 2017
The information contained in this Appendix consists of excerpts from the City of College
Station, Texas Annual Financial Report for the Year Ended September 30, 2017, and is not
intended to be a complete statement of the City's financial condition. Reference is made to
the complete Report for further information.
APPENDIX C
FORMS OF OPINIONS OF BOND COUNSEL
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:218-0277 Name:
Status:Type:Contract Agenda Ready
File created:In control:4/12/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding contract 18300367 with JT Vaughn
Construction, LLC as the Construction Manager at Risk for the College Station Police Headquarters
project.
Sponsors:Erica Wozniak
Indexes:
Code sections:
Attachments:18300367 - Contract JT Vaughn Construction, LLC
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding contract 18300367 with JT Vaughn
Construction, LLC as the Construction Manager at Risk for the College Station Police Headquarters
project.
Relationship to Strategic Goals: (Select all that apply)
·Core Services and Infrastructure
Recommendation(s): Approve JT Vaughn Construction, LLC as the Construction Manager at Risk for
the College Station Police Headquarters project.
Summary: As previously approved by Council, the Construction Manager at Risk delivery method is
being utilized for the College Station Police Headquarters project. Staff received 12 proposals from
Construction Management firms. After reviewing the proposals and completing a bid tabulation, 4 of
the 12 firms were selected for interviews. After interviewing these 4 firms, Staff believes JT Vaughn
Construction, LLC will provide the best value for the City of College Station in regards to the new
Police Headquarters project.
Budget & Financial Summary:
The total project budget is $28,000,000.00 and $25,000,000.00 of that amount is available for
construction costs.
Attachments:
Contract on-file with the City Secretary's Office.
College Station, TX Printed on 4/20/2018Page 1 of 2
powered by Legistar™
File #:18-0277,Version:2
College Station, TX Printed on 4/20/2018Page 2 of 2
powered by Legistar™
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
CITY OF COLLEGE STATION STANDARD FORM OF AGREEMENT BETWEEN CITY AND CONSTRUCTION MANAGER AT RISK This Agreement is entered into by and between the City of College Station, a Texas home-rule municipal corporation (the “City”) and J.T. Vaughn Construction, LLC, a corporation (the “Construction Manager” or Contractor”) for the construction and/or installation of the College Station Police Department Headquarters as more formally descriped in RFP 18-051.
1. GENERAL PROVISIONS
1.1 Relationship of the Parties.
1.1.1 The Construction Manager accepts the relationship of trust and
confidence established with the City by this Agreement, and covenants with the City to furnish
the Construction Manager’s reasonable skill and judgment and to cooperate with the Architect in
furthering the interests of the City. The Construction Manager shall furnish construction
administration and management services and use the Construction Manager’s best efforts to
perform the Project in an expeditious and economical manner consistent with the interests of the
City. The City shall endeavor to promote harmony and cooperation among the City, Architect,
Construction Manager and other persons or entities employed by the City for the Project.
1.2 General Conditions.
1.2.1 Basic Definitions.
1.2.1.1 Addenda. Addenda are written or graphic instruments issued
prior to the execution of the Contract, which modify or interpret the proposal documents,
including Drawings and Specifications, by additions, deletion, clarification or corrections.
Addenda will become part of the Contract Documents when the Agreement is executed.
1.2.1.2 Approved, Approved Equal and Approved Equivalent, or
Equal relate to the substitution of materials, equipment or procedure approved in writing
by the Architect prior to receipt of proposals. The substitution procedure process to be
followed prior to receipt of competitive sealed proposals is described in the instruction to
proposers.
1.2.1.3 Calendar Day. A “calendar day” is any day of the week or
month, no days being excepted.
1.2.1.4 City. Whenever the word “City” is used, it shall mean and be
understood as referring to the City of College Station, Texas.
1.2.1.5 City’s Representative. Whenever the words “City’s
Representative” or “Representative” are used, it shall mean and be understood as referring
to the City Manager or his delegate, who shall act as the City’s agent. The City’s
Representative may inspect and issue instructions but shall not directly supervise the
Contractor. The City’s inspector has authority to reject the Work for failure to comply with
the Contract Documents and/or applicable laws.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
1.2.1.6 Contract Documents. The term “Contract Documents” shall
mean those documents listed in Paragraph 1.3. The Contract Documents form the Contract
for Construction. The Contract represents the entire and integrated agreement between the
parties hereto and supersedes prior negotiations, representations or agreements, either
written or oral. The Contract may be amended or modified only by a written Modification.
The Contract Documents shall not be construed to create a contractual relationship of any
kind (1) between the Architect and Contractor, (2) between the City and a Subcontractor or
Sub-subcontractor, (3) between the City and Architect or (4) between any persons or entities
other than the City and Contractor. The Architect shall be entitled, however, to performance
and enforcement of obligations of the Contractor under the Contract intended to facilitate
performance of the Architect’s duties.
1.2.1.7 Contractor. Whenever the word “Contractor” is used, it shall
mean the person(s), partnership, or corporation who has agreed to perform the work
embraced in this Agreement and the other Contract Documents; specifically it shall mean
the Construction Manager.
1.2.1.8 Contract Time. The period of time which is established in the
Contract Documents for Substantial Completion of the Work. This period of time is not
subject to adjustment or extension without the written permission of the City.
1.2.1.9 Drawings. The Drawings are the graphic and pictorial
portions of the Contract Documents showing the design, location and dimensions of the
Work, generally including plans, elevations, sections, details, schedules and diagrams.
1.2.1.10 Extra Work. The term “Extra Work” shall mean and include
work that is not covered or contemplated by the Contract Documents but that may be
required by the City’s Representative and approved by the City in writing prior to the work
being done by the Contractor.
1.2.1.11 Final Completion. The term “Final Completion” shall mean
that all the work has been completed, all final punch list items have been inspected and
satisfactorily completed, all payments to materialmen and subcontractors have been made,
all documentation and warranties have been submitted, and all closeout documents have
been executed and approved by the City.
1.2.1.12 Interpretation of Phrases. Whenever the words “directed”,
“permitted”, “designated”, “required”, “considered necessary”, “prescribed”, or words of
like import are used, it is understood that the direction, requirement, permission, order,
designation, or prescription of the City’s Representative is intended. Similarly, the words
“approved”, “acceptable”, “satisfactory”, or words of like import shall mean approved by,
accepted by, or satisfactory to the City’s Representative. In the interest of brevity the
Contract Documents may omit modifying words such as “all” or “any” and articles such as
“the” and “an”, but the fact that a modifier or an article is absent from one statement and
appears in another is not intended to affect the interpretation of either statement.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
1.2.1.13 Nonconforming work. The term “nonconforming work”
shall mean work or any part thereof that is rejected by the City’s Representative as not
conforming with the Contract Documents.
1.2.1.14 Notice to Proceed. A notice that may be given by the Owner
to the Contractor that directs the Contractor to start the Work.
1.2.1.15 Parties. The “parties” are the City and the Contractor.
1.2.1.16 Project. The term “Project” shall mean and include all that is
required to obtain a final product that is acceptable to the City. The term “work” shall have
like meaning. The Project is the total construction of which the Work performed under the
Contract Documents may be the whole or a part and which may include construction by the
City or b y separate contractors.
1.2.1.17 Punch List. A comprehensive list prepared by the Contractor
prior to Substantial Completion to establish all items to be completed or corrected; this list
may be supplemented by the Architect or the City.
1.2.1.18 Specifications. The Specifications are that portion of the
Contract Documents consisting of the written requirements for materials, equipment,
systems, standards and workmanship for the Work, and performance of related services.
Organization of the Specifications into divisions, sections and articles, and arrangement of
drawings shall not control the Contractor in dividing the Work among Subcontractors or in
establishing the extent of Work to be performed by any trade. Specifications are attached
hereto as Exhibit E and are incorporated herein for all purposes.
1.2.1.19 Subcontractor. The term “subcontractor” shall mean and
include only those hired by and having a direct contact with Contractor for performance of
work on the Project. The City shall have no responsibility to any subcontractor employed
by a Contractor for performance of work on the Project, and all subcontractors shall look
exclusively to the Contractor for any payments due.
1.2.1.20 Substantial Completion. The term “Substantially
Completed” means that in the opinion of the City’s Representative the Project, including all
systems and improvements, is in a condition to serve its intended purpose but still may
require minor miscellaneous work and adjustment. Final payment of the Agreement Price,
including retainage, however, shall be withheld until Final Completion and acceptance of
the work by the City. Acceptance by the City shall not impair or waive any warranty
obligation of Contractor.
1.2.1.21 Work. The term “Work” means the construction and services
required by the Contract Documents, whether completed or partially completed, and
includes all other labor, materials, equipment and services provided or to be provided by the
Contractor to fulfill the Contractor’s obligations. The Work may constitute the whole or a
part of the Project. The Work includes all labor, parts, supplies, skill, supervision,
transportation, services, and other facilities and things necessary, proper or incidental to the
carrying out and completion of the terms of the Contract Documents and all other items of
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
cost or value needed to produce, construct and fully complete the Work identified by the
Contract Documents.
1.2.1.22 Working Day. A “working day” means any day not including
Saturdays, Sundays, or legal holidays.
1.2.1.23 Unless otherwise stated in the Contract Documents, words
which have well-known technical or construction industry meanings are used in the Contract
Documents in accordance with such recognized meanings.
1.3 Contract Documents.
1.3.1 The Contract Documents and their priority shall be as follows:
1.3.1.1 This signed Agreement
1.3.1.2 Addendum to this Agreement
1.3.1.3 General Conditions
1.3.1.4 Special Conditions
1.3.1.5 Technical specifications
1.3.1.6 Drawings
1.3.1.7 Instructions to Bidders and any other notices to Bidders
or Contractor
1.3.1.8 Performance bond, Payment bonds, Bid bonds and Special
bonds
1.3.1.9 Contractor’s Proposal
1.3.2 Where applicable, the Contractor will be furnished one (1) CD of plans,
drawings, specifications, and related Contract Documents for its use during construction. Plans
and specifications provided for use during construction shall be furnished directly to the
Contractor only.
1.3.3 The Contractor shall distribute copies of the plans and specifications to
suppliers and subcontractors as necessary. The Contractor shall keep one (1) copy of the plans
and specifications accessible at the work site with the latest revisions noted thereon. For proper
execution of the work contemplated by this Agreement, additional sets of drawings, plans and
specifications may be purchased by the Contractor.
1.3.4 All drawings, specifications, and copies thereof furnished by the City
shall not be re-used on other work, and with the exception of one (1) copy of the signed Contract
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Documents, all documents, including sets of the plans and specifications and “as built” drawings,
are to be returned to the City on request at the completion of the work. All Contract Documents,
models, mockups, or other representations are the property of the City. In the event of
inconsistencies within or between parts of the Contract Documents, the Contractor shall (1)
provide the better quality or greater quantity of Work, or (2) comply with the more stringent
requirement, either or both in accordance with the City’s interpretation.
1.4 Owner.
1.4.1 The Owner (or City) is the person or entity identified as such in the
Agreement and is referred to throughout the Contract Documents as if singular in number. The
term “Owner” means the City of College Station or the City’s authorized representative. The
terms “Owner” and “City” may be used interchangeably throughout this Agreement.
1.4.2 The presence of the City or Architect at the Work site does not imply
acceptance or approval of Work.
1.4.3 Information And Services Required Of The Owner.
1.4.3.1 Information or services reasonably necessary for the Work and
under the City’s control shall be furnished by the City with reasonable promptness where
requested in writing by the Contractor. In any instance where information or services from
the City or Architect is required, Contractor shall promptly notify the Architect in writing,
with a copy to the City, of the particular need. Absent such notification, any Claim based
upon lack of such information or services shall be waived.
1.4.4 Owner’s Right To Stop The Work.
1.4.4.1 If the Contractor fails to correct Work which is not in
accordance with the requirements of the Contract Documents as required by Paragraph
1.14.2. or persistently fails to carry out Work in accordance with the Contract Documents,
the City may issue a written order to the Contractor to stop the Work, or any portion thereof,
until the cause for such order has been eliminated; however, the right of the City to stop the
Work shall not give rise to a duty on the part of the City to exercise this right for the benefit
of the Contractor or any other person or entity.
1.4.5 Owner’s Right To Carry Out The Work.
1.4.5.1 If the Contractor defaults or neglects to carry out the Work in
accordance with the Contract Documents and fails within a seven-day period after receipt
of written notice from the City to commence and continue correction of such default or
neglect with diligence and promptness, the City may, without prejudice to other remedies
the City may have, correct such deficiencies. In such case an appropriate Change Order shall
be issued deducting from payments then or thereafter due the Contractor the cost of
correcting such deficiencies, including compensation for the Architect’s additional services
made necessary by such default, neglect or failure. If payments then or thereafter due the
Contractor are not sufficient to cover such amounts, the Contractor shall pay the difference
to the City.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
1.4.5.2 After the Work is complete, the City may make emergency
repairs to the Work, if necessary, to prevent further damage, or if the Contractor does not
promptly respond to a notice of condition requiring repairs. Contractor shall be responsible
to City for this cost if the repairs are due to the Contractor’s defective Work. If payments
then or thereafter due the Contractor are not sufficient to cover such costs, the Contractor
shall pay the difference to the City.
1.4.6 Owner’s Right To Use Or Occupy.
1.4.6.1 The City shall have the right to occupy or use without
prejudice to the right of either party, any completed or largely completed portions of the
Project, notwithstanding the time for completing the entire Work or such portions may not
have expired. Such occupancy and use shall not constitute acceptance of any Work not in
accordance with the Contract Documents.
1.4.6.2 If such prior use delays the completion of the Project, the
Contractor shall be entitled to extension of time, which claim shall be in writing with
supporting data attached.
1.4.6.3 See Paragraph 1.13 – Insurance and Bonds regarding property
insurance requirements in the event of such occupancy.
1.5 Contractor.
1.5.1 The Contractor is the person or entity identified as such in the Agreement
and is referred to throughout the Contract Documents as if singular in number. The term
“Contractor” means the Contractor or the Contractor’s authorized representative.
1.5.2 The Contractor shall perform the Work in accordance with the Contract
Documents.
1.5.3 The Contractor shall not be relieved of obligations to perform the Work
in accordance with the Contract Documents either by activities or duties of the Architect in the
Architect’s administration of the Contract, or by tests, inspections or approvals required or
performed by persons other than the Contractor.
1.5.4 Review Of Contract Documents And Field Conditions By Contractor.
1.5.4.1 The Contractor shall carefully study and compare the
Agreement, Conditions of the Contract, Drawings, Specifications, Addenda, and
Modifications and shall at once report to the Architect any error, inconsistency, or omission
the Contractor discovers. These obligations are for the purpose of facilitating construction
by the Contractor and are not for the purpose of discovering errors, omissions, or
inconsistencies in the Contract Documents; however, any errors, inconsistencies or
omissions discovered by the Contractor shall be reported promptly to the Architect as a
request for information in such form as the Architect may require. If the Contractor performs
any construction activity knowing it involves a recognized error, inconsistency or omission
in the Contract Documents without such notice to the Architect, the Contractor shall assume
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responsibility for such performance and shall pay the total amount of the attributable costs
for correction. Contractor shall not be liable to City or Architect for any damage resulting
from such error, inconsistency or omission which Contractor should not have discovered or
which Contractor did discover and at once so reported. Contractor shall do no Work without
approved Drawings and Specifications.
1.5.4.2 If the Contractor fails to perform the obligations of Paragraph
1.5.4.1., the Contractor shall pay such costs and damages to the City as would have been
avoided if the Contractor had performed such obligations.
1.5.4.3 The Contractor shall not be entitled to additional
compensation for the “rework portion” of any additional work caused by its failure to
carefully study and compare the Contract Documents prior to execution of the Work.
1.5.4.4 The Contractor shall make a reasonable attempt to interpret the
Contract Documents before asking the Architect for assistance in interpretation. The
Contractor shall not ask the Architect for observance of work prior to the Contractor’s field
superintendent’s personal inspection of the Work and his determination that the Work
complies with the Contract Documents. The Contractor shall arrange meetings prior to
commencement of the Work of all major Subcontractors to allow the Subcontractor(s) to
ask for any interpretation it may require.
1.5.4.5 If, in the opinion of the Architect, the Contractor does not
make a reasonable effort to comply with the above requirements of the Contract Documents
and this causes the Architect or its Consultants to expend an unreasonable amount of time
in the discharge of the duties imposed on the Architect by the Contract Documents, then the
Contractor shall bear the cost of compensation for the Architect’s additional services made
necessary by such failure. The Architect will give the Contractor prior notice of intent to
bill for additional services related to above requirements before additional services are
performed.
1.5.4.6 If the Contractor has knowledge that any of the products or
systems specified will perform in a manner that will limit the Contractor’s ability to
satisfactorily perform with Work or to honor Contractor’s Warranty, Contractor shall
promptly notify the Architect, in writing, providing substantiation for Contractor’s position.
Any necessary changes, including substitution of materials, shall be accomplished by
appropriate Modification.
1.5.5 Supervision And Construction Procedures.
1.5.5.1 The Contractor shall supervise and direct the Work, using the
Contractor’s best skill and attention. The Contractor shall be solely responsible for and have
control over construction means, methods, techniques, sequences and procedures and for
coordinating all portions of the Work under the Contract, unless the Contract Documents
give other specific instructions concerning these matters. If the Contract Documents give
specific instructions concerning construction means, methods, techniques, sequences or
procedures, the Contractor shall evaluate the jobsite safety thereof and, except as stated
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below, shall be fully and solely responsible for the jobsite safety of such means, methods,
techniques, sequences or procedures. If the Contractor determines that such means,
methods, techniques, sequences or procedures may not be safe, the Contractor shall give
timely written notice to the City and Architect and shall not proceed with that portion of the
Work without further written instructions from the Architect.
1.5.5.2 The Contractor shall be responsible to the City for acts and
omissions of the Contractor’s employees, Subcontractors and their agents and employees,
and other persons or entities performing portions of the Work for or on behalf of the
Contractor or any of its Subcontractors. It is understood and agreed that the relationship of
the Contractor to City shall be that of an independent contractor. Nothing contained herein
or inferable herefrom shall be deemed or construed to (1) make Contractor the agent, servant
or employee of the City, or (2) to create any partnership, joint venture, or other association
between City and Contractor. Any direction or instruction by City or any of its authorized
representatives in respect of the Work shall relate to the results the City desires to obtain
from the Work, and shall in no way affect Contractor’s independent contractor status
described herein.
1.5.5.3 The Contractor shall be responsible for inspection of portions
of Work already performed to determine that such portions are in proper condition to receive
subsequent Work.
1.5.5.4 Contractor shall execute the Work in a good and workmanlike
manner, continuously and diligently in accordance with generally accepted standards of
construction management and practice for construction of projects similar to the Project,
using qualified, careful and efficient workers and in conformity with the provisions of this
Contract and the other Contract Documents.
1.5.6 Labor And Materials.
1.5.6.1 Unless otherwise provided in the Contract Documents, the
Contractor shall provide and pay for labor, materials, equipment, tools, construction
equipment and machinery, water, heat, utilities, transportation, and other facilities and
services necessary for proper execution and completion of the Work, whether temporary or
permanent and whether or not incorporated or to be incorporated in the Work.
1.5.6.2 The Contractor may make substitutions only with the consent
of the City, after evaluation by the Architect and in accordance with a Change Order.
1.5.6.3 The Contractor shall enforce strict discipline and good order
among the Contractor’s employees and other persons carrying out the Contract. The
Contractor shall not permit employment of unfit persons or persons not skilled in tasks
assigned to them.
1.5.7 Warranty.
1.5.7.1 The Contractor warrants to the City and Architect that
materials and equipment furnished under the Contract will be of good quality and new
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unless otherwise required or permitted by the Contract Documents, that the Work will be
free from defects not inherent in the quality required or permitted, and that the Work will
conform to the requirements of the Contract Documents and recognized industry standards.
Work not conforming to these requirements, including substitutions not properly approved
and authorized, may be considered defective. The Contractor’s warranty excludes remedy
for damage or defect caused by abuse, modifications not executed by the Contractor,
improper or insufficient maintenance (unless such maintenance is Contractor’s
responsibility), improper operation, or normal wear and tear. If required by the Architect,
the Contractor shall furnish satisfactory evidence as to the kind and quality of materials and
equipment. The warranties set out in this Paragraph are not exclusive of any other warranties
or guarantees set out in other places in the Contract Documents or implied under applicable
law.
1.5.7.2 Prior to final payment, Contractor shall furnish any
manufacturer warranties required by the Contract Documents.
1.5.7.3 When deemed necessary by the City, and prior to installation
of any items specifically made subject to a performance standard or regulatory agency
standard under any provision of the Contract Documents, Contractor shall furnish proof of
conformance to the Architect. Proof of Conformance shall be in the form of (1) an affidavit
from the manufacturer certifying that the item is in conformance with the applicable
standard, (2) an affidavit from a testing laboratory certifying that the product has been tested
within the past year and is in conformance with the appreciated standard, or (3) such further
reasonable proof as required by the Architect.
1.5.7.4 The warranties of Contractor provided in Subparagraph
1.5.7.1. shall in no way limit or abridge the warranties of the suppliers of equipment and
system which are to comprise a portion of the Work and all of such warranties shall be in
form and substance as required by the Contract Documents. Contractor shall take no action
or fail to act in any way which results in the termination or expiration of such third party
warranties or which otherwise results in prejudice to the rights of City under such
warranties. Contractor agrees to provide all notices required for the effectiveness of such
warranties and shall include provisions in the contracts with the providers and
manufacturers of such systems and equipment whereby the City shall have a direct right,
but not a duty, of enforcement of such warranty obligations.
1.5.7.5 In the event of failure of materials, products, or workmanship,
either during construction or the warranty period (which shall be one (1) year from the Date
of Final Completion, except where a longer period is specified), the Contractor shall take
appropriate measures to assure correction or replacement of the defective items, whether
notified by the City or Architect.
1.5.7.6 Approximately eleven (11) months after Substantial
Completion, the Contractor shall accompany the City and Architect on a complete
inspection of the Project and be responsible for correcting any observed or reported
deficiencies within thirty (30) calendar days.
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1.5.8 Permits, Fees And Notices.
1.5.8.1 Unless otherwise provided in the Contract Documents, the
Contractor shall secure and pay for the building permit and other permits and governmental
fees, licenses and inspections necessary for proper execution and completion of the Work
which are customarily secured after execution of the Contract and which are legally required
when bids are received or negotiations concluded. All connection charges, assessments or
inspection fees as may be imposed by any city or utility company are included in the
Contract Sum and shall be the Contractor’s responsibility.
1.5.8.2 The Contractor shall comply with and give notices required by
laws, ordinances, rules, regulations and lawful orders and all other requirements of public
authorities applicable to performance of the Work. The Contractor shall procure and obtain
all bonds required of the City or the Contractor by the Contract Documents. In connection
with such bonds, the Contractor shall prepare all applications, supply all necessary back-up
material, and furnish the surety with any required information. The Contractor shall also
obtain and pay all charges for all approvals for street closing and other similar matters as
may be necessary or appropriate from time to time for the performance of the Work.
1.5.8.3 It is not the Contractor’s responsibility to ascertain that the
Contract Documents are in accordance with applicable laws, statutes, ordinances, building
codes, and rules and regulations. However, if the Contractor observes or should have
observed that portions of the Contract Documents are contrary therewith, the Contractor
shall promptly notify the Architect and City in writing, and necessary changes shall be
accomplished by appropriate Modification.
1.5.8.4 If the Contractor performs Work which it knows or should
have known to be contrary to applicable laws, statutes, ordinances, building codes, and rules
and regulations without such notice to the Architect and City, the Contractor shall assume
full responsibility for such Work and shall bear the attributable costs.
1.5.8.5 The Contractor shall be responsible for timely notification to
and coordination with all utility companies regarding the provision of or revising of services
to the Project. The Contractor shall inform the Architect at once when the City’s
participation is required. Connections for temporary and permanent utilities required for
the Work are the responsibility of the Contractor. Payment for temporary and/or permanent
utility services through Final Completion of the Work shall be the responsibility of the
Contractor.
1.5.9 Allowances.
1.5.9.1 The Contractor shall include in the Contract Sum all
allowances stated in the Contract Documents. These stated allowances represent the cost
estimate of the materials and equipment delivered and unloaded at the site. The Contractor’s
installation labor, overhead, profit, and other expenses contemplated for the allowance
material and equipment shall be included in allowance only where called for in the Contract
Documents. The Contractor shall purchase the allowance materials and equipment as
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directed by the Architect on the basis of the lowest responsive bids of at least three (3)
competitive bids. If the actual cost of the materials and equipment delivered and unloaded
at the site is more or less than all the allowance estimates, upon City approval the Contract
Sum will be adjusted accordingly by Change Order.
The amount of the Change Order shall reflect (1) the difference between
actual costs and the allowances under Paragraph 1.5.9.1 and (2) changes in Contractor’s
costs, subject to the limitations set forth at Paragraph 1.9.2.1 (c).
1.5.9.2 Materials and equipment under an allowance shall be selected
with reasonable promptness by the City to avoid delays in the Work (provided that if a
decision is needed by a certain date to avoid delay, Contractor shall notify Architect in
writing sufficiently in advance of the needed date to allow reasonable time for selections).
1.5.10 Superintendent.
1.5.10.1 The Contractor shall employ a competent superintendent and
necessary assistants who shall be in attendance at the Project site during performance of the
Work. The superintendent shall represent the Contractor, and communications given to the
superintendent shall be as binding as if given to the Contractor. Important communications
shall be confirmed in writing. Other communications shall be similarly confirmed on written
request in each case. Notwithstanding the foregoing, Contractor shall keep on the job the
superintendent approved by City who shall not be transferred from the Project without
City’s consent (which shall not be unreasonably withheld). However, such obligation to
furnish the superintendent shall not be construed (1) to preclude the promotion within
Contractor’s organization of any person assigned to the Project or (2) to give rise to any
liability of Contractor if any person assigned to the Project leaves Contractor’s employ. If
City reasonably determines that any employee of Contractor or of its Subcontractors is
careless or not qualified to perform the Work assigned to him, and City and Contractor
cannot, after a diligent and good faith attempt, agree what action should be taken with
respect to the removal or reassignment of such employees, the Contractor shall promptly
remove such employee from the Project and replace such employee. At all times while
procurement activities are being performed in Contractor’s office, Contractor shall appoint
an individual (approved by City, acting reasonably) authorized to act on behalf of Contractor
and with whom City may consult at all reasonable times, and who shall be authorized to
receive the instructions, requests and decisions of City. All of Contractor’s and
Subcontractor’s personnel shall comply with all applicable health, safety, and loss
prevention rules of applicable authorities. Contractor shall, at its own expense, remove from
the Project any person who fails to comply with such rules and instructions in any material
respect.
1.5.11 Contractor’s Construction Schedules.
1.5.11.1 The Contractor shall, promptly after executing the Contract,
develop a construction schedule reasonably defining a plan for completing the Work within
the required time. The format and detail of the schedule shall be in keeping with the size
and complexity of the Project, and the schedule and all updates shall be subject to approval
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of the City and Architect. The schedule and any updates shall not exceed time limits current
under the Contract Documents including granted time extensions, and shall be revised at
appropriate intervals as reasonably required by the City and Architect, shall be related to
the entire Project (if more than one Contract is involved in the Project), and shall provide
for expeditious and practicable execution of the Work. All updated schedules shall address
the subject of how the Contractor intends to overcome any delays previously encountered.
The Contractor shall submit to the Architect with each monthly Application for Payment, a
copy of the updated construction schedule as a prerequisite for approval of Applications for
Payment.
1.5.11.2 The Contractor shall prepare and keep current, for the
Architect’s approval, a schedule of submittals which is coordinated with the Contractor’s
construction schedule and allows the Architect reasonable time to review submittals.
1.5.11.3 The Contractor shall perform the Work in general accordance
with the most recent schedules submitted to the City and Architect.
1.5.11.4 The process of approving Contractor’s schedules and updates
to Contractor’s schedules shall not constitute a warranty by the City that any non-Contractor
milestones or activities will occur as set out in the Contractor’s schedules. Approval of a
Contractor’s schedule does not constitute a commitment by the City to furnish any Owner-
furnished information or material any earlier than City would otherwise be obligated to
furnish that information or material under the Contract Documents. Failure of the Work to
proceed in the sequence scheduled by Contractor shall not alone serve as the basis for a
Claim for additional compensation or time. In the event there is interference with the Work
which is beyond its control, Contractor shall attempt to reschedule the Work in a manner
that will hold the additional time and costs to a minimum. The construction schedules shall
be in a detailed format satisfactory to the City and the Architect and shall also: (1) provide
a graphic representation of all activities and events that will occur during performance of
Work; (2) identify each phase of construction and occupancy; and (3) set forth dates that
are critical in ensuring the timely and orderly completion of the Work in accordance with
the requirements of the Contract Documents (hereinafter referred to as Milestone Dates). If
not accepted, the construction schedules shall be promptly revised by the Contractor in
accordance with the recommendations of the City and Architect and re-submitted for
acceptance. The Contractor shall monitor the progress of the Work for conformance with
the requirements of the construction schedules and shall promptly advise the City of any
delays or potential delays. The accepted construction schedules shall be updated to reflect
actual conditions as set forth in Paragraph 1.5.11.1, if requested, by either the City or
Architect. In the event any schedule indicates any delays, the Contractor shall propose an
affirmative plan to correct the delay. In no event shall any schedule constitute an adjustment
in the Contract Time, any Milestone Date or the Contract Sum unless any such adjustment
is agreed to by the City and authorized pursuant to Change Order.
1.5.12 Documents And Samples At The Site.
1.5.12.1 The Contractor shall maintain at the site for the City one record
copy of the Drawings, Specifications, Addenda, Change Orders and other Modifications, in
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good order and marked currently to record field changes and selections made during
construction, and one record copy of approved Shop Drawings, Product Data, Samples and
similar required submittals. These shall be available to the Architect and shall be delivered
to the Architect for submittal to the City upon completion of the Work.
1.5.13 Shop Drawings, Product Data And Samples.
1.5.13.1 Shop Drawings are drawings, diagrams, schedules and other
data specially prepared for the Work by the Contractor or a Subcontractor, Sub-
subcontractor, manufacturer, supplier or distributor to illustrate some portion of the Work.
1.5.13.2 Product Data are illustrations, standard schedules,
performance charts, instructions, brochures, diagrams and other information furnished by
the Contractor to illustrate materials or equipment for some portion of the Work.
1.5.13.3 Samples are physical examples which illustrate materials,
equipment or workmanship and establish standards by which the Work will be judged.
1.5.13.4 Shop Drawings, Product Data, Samples and similar submittals
are not Contract Documents. The purpose of their submittal is to demonstrate for those
portions of the Work for which submittals are required by the Contract Documents the way
by which the Contractor proposes to conform to the information given and the design
concept expressed in the Contract Documents. Review by the Architect is subject to the
limitations of Paragraph 1.6.2.7. Informational submittals upon which the Architect is not
expected to take responsive action may be so identified in the Contract Documents.
Submittals which are not required by the Contract Documents may be returned by the
Architect without action.
1.5.13.5 The Contractor shall review for compliance with the Contract
Documents, approve and submit to the Architect Shop Drawings, Product Data, Samples
and similar submittals required by the Contract Documents with reasonable promptness and
in such sequence as to cause no delay in the Work or in the activities of the City or of
separate contractors. Submittals which are not marked as reviewed for compliance with the
Contract Documents and approved by the Contractor may be returned by the Architect
without action.
1.5.13.6 By approving and submitting Shop Drawings, Product Data,
Samples and similar submittals, the Contractor represents that the Contractor has
determined and verified materials, field measurements and field construction criteria related
thereto, or will do so, and has checked and coordinated the information contained within
such submittals with the requirements of the Work and of the Contract Documents. If, in
the opinion of the Architect, the shop drawings indicate a lack of study and the review by
the Contractor is incomplete, or indicate an inadequate understanding of the Work covered
by the shop drawings, prior to submittal to the Architect, the shop drawings will be returned,
unchecked, to the Contractor for correction of any/all of these deficiencies for subsequent
resubmittal.
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1.5.13.7 The Contractor shall perform no portion of the Work for which
the Contract Documents require submittal and review of Shop Drawings, Product Data,
Samples or similar submittals until the respective submittal has been approved by the
Architect.
1.5.13.8 The Work shall be in accordance with approved submittals
except that the Contractor shall not be relieved of responsibility for deviations from
requirements of the Contract Documents by the Architect’s approval of Shop Drawings,
Product Data, Samples or similar submittals unless the Contractor has specifically informed
the Architect in writing of such deviation at the time of submittal and (1) the Architect has
given written approval to the specific deviation as a minor change in the Work, or (2) a
Change Order or Construction Change Directive has been issued authorizing the deviation.
The Contractor shall not be relieved of responsibility for errors or omissions in Shop
Drawings, Product Data, Samples or similar submittals by the Architect’s approval thereof.
1.5.13.9 The Contractor shall direct specific attention, in writing or on
resubmitted Shop Drawings, Product Data, Samples or similar submittals, to revisions other
than those requested by the Architect on previous submittals. In the absence of such written
notice the Architect’s approval of a resubmission shall not apply to such revisions.
1.5.13.10 The Contractor shall not be required to provide professional
services which constitute the practice of architecture or engineering unless such services are
specifically required by the Contract Documents for a portion of the Work or unless the
Contractor needs to provide such services in order to carry out the Contractor’s
responsibilities for construction means, methods, techniques, sequences and procedures.
The Contractor shall not be required to provide professional services in violation of
applicable law. If professional design services or certifications by a design professional
related to systems, materials or equipment are specifically required of the Contractor by the
Contract Documents, the City and the Architect will specify all performance and design
criteria that such services must satisfy. The Contractor shall cause such services or
certifications to be provided by a properly licensed design professional, whose signature
and seal shall appear on all drawings, calculations, specifications, certifications, Shop
Drawings and other submittals prepared by such professional. Shop Drawings and other
submittals related to the Work designed or certified by such professional, if prepared by
others, shall bear such professional’s written approval when submitted to the Architect. The
City and the Architect shall be entitled to rely upon the adequacy, accuracy and
completeness of the services, certifications or approvals performed by such design
professionals, provided the City and Architect have specified to the Contractor all
performance and design criteria that such services must satisfy. Pursuant to this Paragraph
1.5.13.10, the Architect will review, approve or take other appropriate action on submittals
only for the limited purpose of checking for conformance with information given and the
design concept expressed in the Contract Documents. The Contractor shall not be
responsible for the adequacy of the performance or design criteria required by the Contract
Documents.
1.5.13.11 Adequate copies of Shop Drawings for architectural,
structural, mechanical and electrical work shall be submitted to the Architect for review.
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1.5.13.12 The Contractor shall submit complete Drawings, Data and
Samples to the Architect at least thirty (30) days prior to the date the Contractor needs the
reviewed submittals returned. The Contractor shall be prepared to submit color samples on
any key items within sixty (60) days of the execution of the Contract. Once samples of all
key items are received, the Architect will finalize color selections.
1.5.13.13 The Contractor shall submit the number of copies of Product
Data and Samples which the Contractor and its Subcontractor(s) need for their use PLUS
two (2) additional sets for the Architect, one (1) additional set for the City and one (1)
additional set for each of the Architect’s consultants involved with the particular section of
Work. Where Shop Drawings are involved, the Contractor shall submit one (1) high quality
reproducible transparency and one (1) opaque print of the Shop Drawings for the Architect
plus one (1) additional opaque print for each of the Architect’s consultants involved with
the particular section of Work. The reproducible transparency will be marked by the
Architect and/or its consultants. After final review and correction of the submittal,
Contractor shall send one (1) corrected set to the Architect and one (1) to each of the
Architect’s consultants involved with the particular section of Work.
1.5.13.14 The Contractor shall provide composite drawings within three
(3) months of Contract signing showing how all piping, ductwork, lights, conduit,
equipment, etc. will fit into the ceiling space allotted, including clearances required by the
manufacturer, by code, or in keeping with good construction practice. Space for all trade
elements must be considered on the same drawing. Drawings shall be at ¼ inch per foot
minimum scale and shall include invert elevations and sections required to meet the intended
purpose.
1.5.14 Use Of Site.
1.5.14.1 The Contractor shall confine operations at the site to areas
permitted by law, ordinances, permits and the Contract Documents and shall not
unreasonably encumber the site with materials or equipment.
1.5.14.2 The Contractor’s access to the site, parking, field office
location, material and equipment storage, and confinement of said areas shall be coordinated
with, and approved by the City prior to the Contractor’s mobilization on the site. Once
agreed upon, the Contractor shall not adjust or increase any of the above areas without prior
consent by the Owner.
1.5.15 Cutting And Patching.
1.5.15.1 The Contractor shall be responsible for cutting, fitting or
patching required to complete the Work or to make its parts fit together properly.
1.5.15.2 The Contractor shall not damage or endanger a portion of the
Work or fully or partially completed construction of the City or separate contractors by
cutting, patching or otherwise altering such construction, or by excavation. The Contractor
shall not cut or otherwise alter such construction by the City or a separate contractor except
with written consent of the City and of such separate contractor; such consent shall not be
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unreasonably withheld. The Contractor shall not unreasonably withhold from the City or a
separate contractor the Contractor’s consent to cutting or otherwise altering the Work.
1.5.16 Cleaning Up.
1.5.16.1 The Contractor shall keep the premises and surrounding area
free from accumulation of waste materials or rubbish caused by operations under the
Contract. At completion of the Work, the Contractor shall remove from and about the
Project waste materials, rubbish, the Contractor’s tools, construction equipment, machinery
and surplus materials. The Contractor shall be responsible for protection of the Work and
shall repair or replace damaged work at Substantial Completion of the Work. The
Contractor shall remove all temporary protections at the completion of the Work.
1.5.16.2 If the Contractor fails to clean up as provided in the Contract
Documents, the City may do so and the cost thereof shall be charged to the Contractor.
1.5.16.3 Prior to the Architect’s inspection for Substantial Completion,
the Contractor shall: clean exterior surfaces exposed to view; remove temporary labels,
stains, and foreign substances; polish transparent and glossy surfaces; clean equipment and
fixtures to a sanitary condition; clean roofs; clean the Project site; sweep paved areas and
rake clean other surfaces; and remove trash and surplus materials from the Project site.
1.5.17 Access To Work.
1.5.17.1 The Contractor shall provide the City and Architect access to
the Work in preparation and progress wherever located.
1.5.18 Royalties, Patents And Copyrights.
1.5.18.1 The Contractor shall pay all royalties and license fees. The
Contractor shall defend suits or claims for infringement of copyrights and patent rights and
shall hold the City and Architect harmless from loss on account thereof, but shall not be
responsible for such defense or loss when a particular design, process or product of a
particular manufacturer or manufacturers is required by the Contract Documents or where
the copyright violations are contained in Drawings, Specifications or other documents
prepared by the City or Architect. However, if the Contractor has reason to believe that the
required design, process or product is an infringement of a copyright or a patent, the
Contractor shall be responsible for such loss unless such information is promptly furnished
to the Architect.
1.5.19 INDEMNIFICATION AND RELEASE.
1.5.19.1 CONTRACTOR SHALL PROTECT, DEFEND, HOLD
HARMLESS AND INDEMNIFY THE CITY FROM ANY AND ALL CLAIMS,
DEMANDS, EXPENSES, LIABILITY OR CAUSES OF ACTION FOR INJURY TO
ANY PERSON, INCLUDING DEATH, AND FOR DAMAGE TO ANY PROPERTY,
TANGIBLE OR INTANGIBLE, OR FOR ANY BREACH OF CONTRACT
ARISING OUT OF OR IN ANY MANNER CONNECTED WITH THE WORK
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DONE BY ANY PERSON UNDER THIS AGREEMENT. IT IS THE INTENT OF
THE PARTIES THAT THIS PROVISION SHALL EXTEND TO, AND INCLUDE,
ANY AND ALL CLAIMS, CAUSES OF ACTION OR LIABILITY CAUSED BY
THE CONCURRENT, JOINT AND/OR CONTRIBUTORY NEGLIGENCE OF
THE CITY, AN ALLEGED BREACH OF AN EXPRESS OR IMPLIED
WARRANTY BY THE CITY OR WHICH ARISES OUT OF ANY THEORY OF
STRICT OR PRODUCTS LIABILITY.
1.5.19.2 The indemnifications contained in Paragraph 1.5.19.1. shall
include but not be limited to the following specific instances:
(a) The City is damaged due to the act, omission,
mistake,fault or default of the Contractor.
(b) In the event of any claims for payment for goods or
services brought by any material suppliers, mechanics, laborers, or other
subcontractors.
(c) In the event of any and all injuries to or claims of
adjacent property owners caused by the Contractor, its agents, employees, and
representatives.
(d) In the event of any damage to the floor, walls, etc., caused
by the Contractor's personnel or equipment during installation.
(e) The removal of all debris related to the Work.
(f) The acts and omissions of the subcontractors.
(g) The Contractor's failure to comply with applicable
federal, state, or local regulations, that touch upon or concern the maintenance
of a safe and protected working environment and the safe use and operation
of machinery and equipment in that working environment, no matter where
fault or responsibility lies.
1.5.19.3 The indemnification obligations of the Contractor under this
Paragraph shall not extend to include the liability of any professional engineer, the architect,
their consultants, and agents or employees of any of them arising out of (1) the preparation
or approval of maps, drawings, opinions, reports, surveys, Change orders, designs or
specifications, or (2) the giving of or the failure to give directions or instructions by the
professional engineer, the architect, their consultants, and agents and employees of any of
them, provided such giving or failure to give is the primary cause of the injury or damage.
1.5.19.4 It is agreed with respect to any legal limitations now or
hereafter in effect and affecting the validity or enforceability of the indemnification
obligation under Paragraph 1.5.19.1., such legal limitations are made a part of the
indemnification obligation and shall operate to amend the indemnification obligation to the
minimum extent necessary to bring the provision into conformity with the requirements of
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
such limitations, and as so modified, the indemnification obligation shall continue in full
force and effect.
1.5.19.5 Contractor’s indemnification obligations hereunder shall
survive termination, completion, abandonment and final payment.
1.5.19.6 The Contractor assumes full responsibility for the Work to be
performed hereunder, and hereby releases, relinquishes, and discharges the City, its
officers, agents, and employees from all claims, demands, and causes of action of every
kind and character, including the cost of defense thereof, for any injury to or death of any
person (whether employees of either party or other third parties) and any loss of or damage
to any property (whether property of either of the parties hereto, their employees, or of third
parties) that is caused by or alleged to be caused by, arising out of, or in connection with the
Contractor’s Work to be performed hereunder. This release shall apply regardless of
whether said claims, demands, and causes of action are covered in whole or in part by
insurance, and in the event of injury, death, property damage, or loss suffered by the
Contractor, any Subcontractor, or any person or organization directly or indirectly employed
by any of them to perform or furnish work on the Project, this release shall apply regardless
of whether such injury, death, loss, or damage was caused in whole or in part by the
negligence of the City.
1.5.20 Reproducible Record Drawings.
1.5.20.1 Required as part of Final Completion of the Project, the
Contractor shall submit one (1) complete set of drawings with all changes made during
construction, including concealed mechanical, electrical, and plumbing items
1.5.21 Antitrust Violations.
1.5.21.1 To permit the City to recover damages suffered in antitrust
violations, Contractor hereby assigns to Owner any and all claims for overcharges
associated with this Contract which are under the antitrust laws of the United States, 15
U.S.C.A., Sec. 1 et. seq. (1973). The Contractor shall include this provision in its
agreements with each Subcontractor and supplier. Each Subcontractor shall include such
provision in agreements with sub-subcontractors and suppliers.
1.6 Administration Of The Contract.
1.6.1 Architect.
1.6.1.1 The Architect is the person lawfully licensed to practice
architecture or an entity lawfully practicing architecture identified as such in the Agreement
and is referred to throughout the Contract Documents as if singular in number. The term
“Architect” means the Architect or the Architect’s authorized representative or such
successor Architect as City may appoint by written notice to Contractor from time to time.
1.6.1.2 City shall notify Contractor when the duties, responsibilities
or limitations of authority of the Architect have been modified.
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Form Revised on 11-15-17
1.6.1.3 If the employment of the Architect is terminated, the City may
elect to appoint a replacement Architect, or at its option, elect to complete the Project using
another consultant or representative to perform the balance of the Architect’s functions on
the Work.
1.6.1.4 Except as herein expressly provided, the Contractor shall not
be relieved of its obligation to perform the Work in strict accordance with the Contract
Documents by the activities or duties of the Architect.
1.6.2 Architect’s Administration Of The Contract.
1.6.2.1 Certain portions of the administration of the Contract will be
performed by the Architect. The Architect shall not have the authority to act on behalf of
the City unless such authority is expressly granted in the Contract Documents, nor shall
such authority be implied from any act or representation of the Architect. The City is free
to elect to have some of the administration duties set out for the Architect to perform under
the Contract Documents performed by a construction manager or by employees of the City.
1.6.2.2 The Architect, as a representative of the City, will visit the site
at intervals appropriate to the stage of the Contractor’s operations (1) to become generally
familiar with and to keep the City informed about the progress and quality of the portion of
the Work completed, (2) to endeavor to guard the City against defects and deficiencies in
the Work, and (3) to determine in general if the Work is being performed in a manner
indicating that the Work, when fully completed, will be in accordance with the Contract
Documents. However, the Architect will not be required to make exhaustive or continuous
on-site inspections to check the quality or quantity of the Work. The Architect will neither
have control over or charge of, nor be responsible for, the construction means, methods,
techniques, sequences or procedures, or for the safety precautions and programs in
connection with the Work, since these are solely the Contractor’s rights and responsibilities
under the Contract Documents, except as provided in Paragraph 1.5.5.1. In no event shall
City or any other party have control over, be in charge of, or be responsible for construction
means, methods, techniques, sequences, procedures, or for safety precautions and programs
in connection with the Work, since these are solely Contractor’s responsibilities. City will
not be responsible for the Contractor’s failure to carry out the Work in accordance with the
Contract Documents. City will not have control over, be in charge of, and will not be
responsible for the acts or omissions of Contractor, Subcontractors, or their agents or
employees, or of any other persons performing portions of the Work.
1.6.2.3 The Architect will not be responsible for the Contractor’s
failure to perform the Work in accordance with the requirements of the Contract Documents.
The Architect will not have control over or charge of and will not be responsible for acts or
omissions of the Contractor, Subcontractors, or their agents or employees, or any other
persons or entities performing portions of the Work.
1.6.2.4 Communications Facilitating Contract Administration.
Except as otherwise provided in the Contract Documents or when direct communications
have been specially authorized, the City and Contractor shall endeavor to communicate with
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each other through the Architect about matters arising out of or relating to the Contract.
Communications by and with the Architect’s consultants shall be through the Architect.
Communications by and with Subcontractors and material suppliers shall be through the
Contractor. Communications by and with separate contractors shall be through the City.
1.6.2.5 Based on the Architect’s evaluations of the Contractor’s
Applications for Payment, the Architect will review and certify the amounts due the
Contractor and will issue Certificates for Payment in such amounts.
1.6.2.6 The Architect will have authority to reject Work that does not
conform to the Contract Documents. Whenever the Architect considers it necessary or
advisable for implementation of the intent of the Contract Documents, the Architect will
have authority to require additional inspection or testing of the Work in accordance with
Paragraphs 1.15.5.2. and 1.15.5.3., whether or not such Work is fabricated, installed or
completed. However, neither this authority of the Architect nor a decision made reasonably
and in good faith either to exercise or not to exercise such authority shall give rise to a duty
or responsibility of the Architect to the Contractor, Subcontractors, material and equipment
suppliers, their agents or employees, or other persons or entities performing portions of the
Work.
1.6.2.7 The Architect will review and approve or take other
appropriate action upon the Contractor’s submittals such as Shop Drawings, Product Data
and Samples, but only for the limited purpose of checking for conformance with information
given and the design concept expressed in the Contract Documents. The Architect’s action
will be taken with such reasonable promptness as to cause no delay in the Work or in the
activities of the City, Contractor or separate contractors, while allowing sufficient time in
the Architect’s professional judgment to permit adequate review. Review of such submittals
is not conducted for the purpose of determining the accuracy and completeness of other
details such as dimensions and quantities, or for substantiating instructions for installation
or performance of equipment or systems, all of which remain the responsibility of the
Contractor as required by the Contract Documents. The Architect’s review of the
Contractor’s submittals shall not relieve the Contractor of its obligations. The Architect’s
review shall not constitute approval of safety precautions or, unless otherwise specifically
stated by the Architect, of any construction means, methods, techniques, sequences or
procedures. The Architect’s approval of a specific item shall not indicate approval of an
assembly of which the item is a component.
1.6.2.8 The Architect will prepare Change Orders and Construction
Change Directives, and may authorize minor changes in the Work as provided in Paragraph
1.9.4.
1.6.2.9 The Architect will conduct inspections to determine the date
or dates of Substantial Completion and the date of Final Completion, will receive and
forward to the City, for the City’s review and records, written warranties and related
documents required by the Contract and assembled by the Contractor, and will issue a final
Certificate for Payment upon compliance with the requirements of the Contract Documents.
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1.6.2.10 If the City and Architect agree, the Architect will provide one
or more project representatives to assist in carrying out the Architect’s responsibilities at
the site. The duties, responsibilities and limitations of authority of such project
representatives shall be as set forth in an exhibit to be incorporated in the Contract
Documents.
1.6.2.11 The Architect will interpret and decide matters concerning
performance under, and requirements of, the Contract Documents on written request of
either the City or Contractor. The Architect’s response to such requests will be made in
writing within any time limits agreed upon or otherwise with reasonable promptness. If no
agreement is made concerning the time within which interpretations required of the
Architect shall be furnished in compliance with this Paragraph 1.6.2.11, then delay shall not
be recognized on account of failure by the Architect to furnish such interpretations until
thirty (30) days after written request is made for them.
1.6.2.12 Interpretations and decisions of the Architect will be
consistent with the intent of and reasonably inferable from the Contract Documents and will
be in writing or in the form of drawings.
1.6.2.13 The Architect’s decisions on matters relating to aesthetic
effect will be final if consistent with the intent expressed in the Contract Documents.
1.6.3 Claims And Disputes.
1.6.3.1 Definition. A Claim is any demand or assertion by the
Contractor that it should be paid more money than the Contract Sum, as adjusted under the
Change Order provisions herein, by the City because of action or inaction on the part of
City, Architect, or any party for whom City is responsible, or any party with whom City has
separately contracted for other portions of the Project, including but not limited to any
demand or assertion that Contractor’s performance has been delayed, interrupted or
interfered with, that Contractor’s performance has been accelerated, constructively
accelerated, or suspended, that Contractor’s performance has been wrongfully terminated,
that the Contract Documents have been misinterpreted, that here has been a failure of
payment, that Contractor has encountered concealed or unknown conditions, that Contractor
has encountered hazardous materials, that there are problems with the Contract Documents,
or the timing of Architectural approvals or decisions, that action of the City have been
intentionally wrongful or deceptive in any way to the Work, that the amount of time or
money granted in a Construction Change Directive is inadequate, that an item treated as a
minor change in the Work should have been treated as a Change Order, that a time extension
granted was inadequate, or that Contractor is entitled to any other relief, on any legal theory,
related to the Work and the Contract. Nothing contained in this subparagraph shall be
construed as creating any Contractor right to make a claim, where no such right otherwise
exists.
1.6.3.2 Notice Requirement: Within fourteen (14) calendar days of
the first occurrence of an event that Contractor has any reason to believe might result in a
Claim, or within fourteen (14) calendar days of Contractor’s discovery of the first
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occurrence of the event that Contractor has any reason to believe might result in a Claim, if
the first occurrence of the event was willfully hidden from the Contractor, the Contractor
shall file a written document clearly captioned “Notice of Claim” with City and Architect.
The notice shall clearly set out the specific matter of complaint, and the impact of damages
which may occur or have occurred as a result thereof, to the extent the impact or damages
can be assessed at the time of the notice. If the impact or damages cannot be assessed as of
the date of the notice, the notice shall be amended at the earliest date that is reasonably
possible.
1.6.3.2.1 Any Claim or portion of a Claim that has not been made
the specific subject of a notice strictly in accordance with the requirements of this
Paragraph shall be waived. It is imperative that City have timely, specific notice
of any subject, the impact of which City may be in a position to mitigate.
1.6.3.2.2 No course of conduct or dealings between the parties,
nor implied acceptance of alteration or additions to the Work or changes to the
Contract schedule, shall be the basis for any claim for an increase in the Contract
Sum or change in the Contract Time.
1.6.3.3 Claims Handling During Construction: After receipt of a
Notice of Claim, the City may elect to refer the matter to the Architect or another party for
review. Contractor will attend meetings called to review and discuss the Claim and
mitigation of the problem, and shall furnish any reasonable factual backup of the Claim
requested. The City may also elect to defer consideration of the Claim until the Work is
completed, in which case the same review options shall be available to the City at the
completion of the Work. At any stage, the City is entitled to refer a Claim to mediation
under the Construction Industry Mediation Rules of the American Arbitration Association,
and if this referral is made, Contractor will take part in the mediation process. The filing,
mediation or rejection of a Claim does not entitle Contractor to stop performance of the
Work. The Contractor shall proceed diligently with performance of the Work during the
pendency of any claim, except termination under City’s direction to stop the Work.
Agreements reached in mediation shall be enforceable as settlement agreements in any court
having jurisdiction thereof. The parties shall share the Mediator’s fee and any filing fees
equally, and the Mediation shall be held in College Station, Texas.
1.6.3.4 Claims Handling Following Construction: The acceptance of
final payment shall constitute a waiver of Claims by the Contractor which have not
previously been identified in a timely notice of Claim and specifically reserved in the final
Application for Payment.
1.6.3.5 Claims for Concealed or Unknown Conditions. Only if
conditions are encountered at the site which are (1) subsurface or otherwise concealed
physical conditions which differ materially from those indicated in the Contract Documents
or (2) unknown physical conditions of an unusual nature, which differ materially from those
ordinarily found to exist and generally recognized as inherent in construction activities of
the character provided for in the Contract Documents, then Contractor shall be entitled to
make a Claim if it can satisfy all of the other requirements of Paragraph 1.6.
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1.6.3.6 Claims for Additional Cost. If the Contractor wishes to make
Claim for an increase in the Contract Sum, written notice as provided herein shall be given
before proceeding to execute the Work. Prior notice is not required for Claims relating to
an emergency endangering life or property arising under Paragraph 1.12.4.
1.6.3.7 Calculating Claim Amount: In calculating the amount of any
Claim, the following standards will apply:
(a) No indirect or consequential damages will be allowed.
(b) All damages must be directly and specifically shown to be
caused by a proven wrong. No recovery shall be based on a comparison of planned
expenditures to total actual expenditures, or on estimated losses of labor efficiency,
or on a comparison of planned manloading to actual manloading, or any other
analysis that is used to show damages indirectly.
(c) Damages are limited to extra costs specifically shown to
have been directly caused by a proven wrong.
(d) The maximum daily limit on any recovery for delay shall be
the amount established by the Contractor for job overhead costs, defined in the
Schedule of Values, divided by the total number of calendar days of Contract Time
called for in the original Contract. Absent an overhead amount in the Schedule of
Values, the amount estimated by the Contractor for job overhead costs shall be
used.
(e) The maximum amount of all Claims is expressly agreed to
be limited to five percent (5%) of the Contract Sum.
1.7 Subcontractors.
1.7.1 Definitions.
1.7.1.1 A Subcontractor is a person or entity who has a direct contract
with the Contractor to perform a portion of the Work at the site. The term “Subcontractor”
is referred to throughout the Contract Documents as if singular in number and means a
Subcontractor or an authorized representative of the Subcontractor. The term
“Subcontractor” does not include a separate contractor or subcontractors of a separate
contractor.
1.7.1.2 A Sub-subcontractor is a person or entity who has a direct or
indirect contract with a Subcontractor to perform a portion of the Work at the site. The term
“Sub-subcontractor” is referred to throughout the Contract Documents as if singular in
number and means a Sub-subcontractor or an authorized representative of the Sub-
subcontractor.
1.7.2 Award Of Subcontracts And Other Contracts For Portions Of The Work.
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CMAR- Construction
Form Revised on 11-15-17
1.7.2.1 Unless otherwise stated in the Contract Documents or the
bidding requirements, the Contractor, as soon as practicable after award of the Contract,
shall furnish in writing to the City through the Architect the names of persons or entities
(including those who are to furnish materials or equipment fabricated to a special design)
proposed for each principal portion of the Work. The Architect will promptly reply to the
Contractor in writing stating whether or not the City or the Architect, after due investigation,
has reasonable objection to any such proposed person or entity. Failure of the City or
Architect to reply promptly shall constitute notice of no reasonable objection.
1.7.2.2 The Contractor shall not contract with a proposed person or
entity to whom the City or Architect has made reasonable and timely objection. The
Contractor shall not be required to contract with anyone to whom the Contractor has made
reasonable objection.
1.7.2.3 If the City or Architect has reasonable objection to a person or
entity proposed by the Contractor, the Contractor shall propose another to whom the City
or Architect has no reasonable objection. If the proposed but rejected Subcontractor was
reasonably capable of performing the Work, the Contract Sum and Contract Time shall be
increased or decreased by the difference, if any, occasioned by such change, and an
appropriate Change Order shall be issued before commencement of the substitute
Subcontractor’s Work. However, no increase in the Contract Sum or Contract Time shall
be allowed for such change unless the Contractor has acted promptly and responsively in
submitting names as required.
1.7.2.4 The Contractor shall not change a Subcontractor, person or
entity previously selected if the City or Architect makes reasonable objection to such
substitute.
1.7.2.5 The Contractor shall submit the list of proposed
Subcontractors on a form provided by the Architect. The Contractor may obtain blank
copies from the Architect.
1.7.2.6 The Contractor and Subcontractors are required to visit the site
and completely familiarize themselves with the existing conditions prior to the submission
of Proposal(s). No additional increase in the Contract amount will be provided when
existing or known conditions require a certain amount of work to comply with the intent of
the Contract Documents.
1.7.3 Subcontractual Relations.
1.7.3.1 By appropriate agreement, written where legally required for
validity, the Contractor shall require each Subcontractor, to the extent of the Work to be
performed by the Subcontractor, to be bound to the Contractor by terms of the Contract
Documents, and to assume toward the Contractor all the obligations and responsibilities,
including the responsibility for safety of the Subcontractor’s Work, which the Contractor,
by these Documents, assumes toward the City and Architect. Each subcontract agreement
shall preserve and protect the rights of the City and Architect under the Contract Documents
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with respect to the Work to be performed by the Subcontractor so that subcontracting thereof
will not prejudice such rights. Where appropriate, the Contractor shall require each
Subcontractor to enter into similar agreements with Sub-subcontractors. The Contractor
shall make available to each proposed Subcontractor, prior to the execution of the
subcontract agreement, copies of the Contract Documents to which the Subcontractor will
be bound, and, upon written request of the Subcontractor, identify to the Subcontractor
terms and conditions of the proposed subcontract agreement which may be at variance with
the Contract Documents. Subcontractors will similarly make copies of applicable portions
of such documents available to their respective proposed Sub-subcontractors.
1.7.4 Contingent Assignment Of Subcontracts.
1.7.4.1 Each subcontract agreement for a portion of the Work is
assigned by the Contractor to the City provided that:
(a) assignment is effective only after termination of the Contract
by the City for cause pursuant to Paragraph 1.16.2. and only for those subcontract
agreements which the City accepts by notifying the Subcontractor and Contractor
in writing; and
(b) assignment is subject to the prior rights of the surety, if any,
obligated under bond relating to the Contract.
1.7.4.2 City shall only be responsible for compensating Subcontractor
for Work done or materials furnished after the date City gives written notice of its
acceptance of the subcontract agreement.
1.7.4.3 Each Subcontract and assignment shall provide that the City
shall only be responsible to the Subcontractor for those services and materials furnished by
the Subcontractor subsequent to the City’s exercise of any rights under this contingent
assignment.
1.7.5 Responsibility.
1.7.5.1 Contractor shall be fully responsible for the performance of its
Subcontractor, including those selected or approved by the City.
1.8 Construction By Owner Or By Separate Contractors.
1.8.1 Owner’s Right to Perform Construction and to Award Separate Contracts.
1.8.1.1 The City reserves the right to perform other construction work,
maintenance and repair work near or adjacent to the site during the time period of the Work.
Owner may perform other Work with separate contractors. City shall have access to the site
at all times.
1.8.1.2 When separate contracts are awarded for different portions of
the Project or other construction or operations on the site, the term “Contractor” in the
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Contract Documents in each case shall mean the Contractor who executes each separate
Owner-Contractor Agreement.
1.8.2 Mutual Responsibility.
1.8.2.1 The Contractor shall afford the City and separate contractors
reasonable opportunity for introduction and storage of their materials and equipment and
performance of their activities, and shall connect and coordinate the Contractor’s
construction and operations with theirs as required by the Contract Documents.
1.8.2.2 If part of the Contractor’s Work depends for proper execution
or results upon construction or operations by the City or a separate contractor, the Contractor
shall, prior to proceeding with that portion of the Work, promptly report to the Architect
discrepancies or defects in such other construction that would render it unsuitable for such
proper execution and results. Failure of the Contractor so to report shall constitute an
acknowledgment that the City’s or separate contractor’s completed or partially completed
construction is fit and proper to receive the Contractor’s Work, except as to defects not then
reasonably discoverable.
1.8.2.3 The City shall be reimbursed by the Contractor for costs
incurred by the City which are payable to a separate contractor because of delays,
improperly timed activities or defective construction of the Contractor.
1.8.2.4 The Contractor shall promptly remedy damage wrongfully
caused by the Contractor to completed or partially completed construction or to property of
the City or separate contractors as provided in Paragraph 1.12.2.5.
1.8.2.5 The City and each separate contractor shall have the same
responsibilities for cutting and patching as are described for the Contractor in Paragraph
1.5.15.
1.8.3 Owner’s Right To Clean Up.
1.8.3.1 If a dispute arises among the Contractor, separate contractors
and the City as to the responsibility under their respective contracts for maintaining the
premises and surrounding area free from waste materials and rubbish, the City may clean
up and the Architect will allocate the cost among those responsible.
1.9 Changes In The Work.
1.9.1 General.
1.9.1.1 Changes in the Work may be accomplished after execution of
the Contract, and without invalidating the Contract, by Change Order, Construction Change
Directive or order for a minor change in the Work. The Contract Sum and/or Contract Time
may be increased for changes in the Work if the provisions of this Paragraph have been met.
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Form Revised on 11-15-17
1.9.1.1.1 No change in the Contract Sum and/or Contract Time
will be allowed for a change in the Work unless prior to performing the changed
Work, the Contractor has provided the City in writing a proposal for any change
in price and/or change in Contract Time caused by the change in Work, and a
Change Order is subsequently executed. A field directive or field order shall not
be recognized as having any impact upon the Contract Sum or the Contract Time,
and Contractor shall have no Claim therefore, unless it shall, prior to complying
with the directive and in any event within fourteen (14) calendar days of receiving
the directive, submit a change proposal to the City, and a Change Order is
subsequently executed, or Contractor satisfies the requirements of Paragraph
1.6.3. Contractor’s proposal shall be subject to City’s acceptance and remain firm
and irrevocable for a period of forty-five (45) calendar days after receipt by City.
Thereafter, Contractor reserves the right to resubmit such change proposal upon
different pricing and time of performance terms.
1.9.1.2 A Change Order shall be based upon agreement among the
City, Contractor and Architect; a Construction Change Directive requires agreement by the
City and Architect and may or may not be agreed to by the Contractor; an order for a minor
change in the Work may be issued by the Architect alone.
1.9.1.3 Changes in the Work shall be performed under applicable
provisions of the Contract Documents, and the Contractor shall proceed promptly, unless
otherwise provided in the Change Order, Construction Change Directive or order for a
minor change in the Work. Except as permitted in Paragraph 1.9.3., a change in the Contract
Sum or the Contract Time shall be accomplished only by Change Order.
1.9.1.4 The Contractor, upon receipt of written notification by the
Architect of a proposed item of change in the Work, shall prepare as soon as possible a
Change Proposal in such form or forms as directed by the Architect.
(a) Each separate Change Proposal shall be numbered
consecutively and shall include material costs, labor costs, fees, overhead and
profit. The Change Proposal shall specify all costs related to the proposed change
in the Work, including any disruption or impact on performance.
(b) The Subcontractor’s itemized accounting shall be included
with the Change Proposal.
(c) If a Change Proposal is returned to the Contractor for
additional information or if the scope of the proposed change in the Work is
modified by additions, deletions or other revisions, the Contractor shall revise the
Change Proposal accordingly and resubmit the revised Change Proposal to the
Architect.
(d) A revised Change Proposal shall bear the original Change
Proposal number suffixed by the letter “R” to designate a revision in the original
Change Proposal. If additional revisions to a revised Change Proposal are
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necessary, each subsequent revision shall be identified by an appropriate numeral
suffix immediately following the “R” suffix.
(e) Upon written approval of a Change Proposal by the City, the
Architect will prepare a Change Order authorizing such change in Work.
(f) The Contractor shall request extensions of Contract Time
due to changes in the Work only at the time of submitting its Change Proposal.
Contractor’s failure to do so shall represent a waiver of any right to request a
time extension.
1.9.2 Change Orders.
1.9.2.1 A Change Order is a written instrument prepared by the
Architect and signed by the City, Contractor and Architect, stating their agreement upon all
of the following:
(a) change in the Work;
(b) the amount of the adjustment, if any, in the Contract Sum;
and
(c) the extent of the adjustment, if any, in the Contract Time.
Pursuant to Section 252.048(d) of the Texas Local Government Code, the
Guaranteed Maximum Price (“GMP”) may not be increased by more than twenty-
five percent (25%). Written change orders that do not exceed twenty-five percent
(25%) of the original contract amount may be made or approved by the City
Manager or his delegate if the change order is less than Fifty Thousand Dollars
($50,000.00). Changes in excess of Fifty Thousand Dollars ($50,000.00) must be
approved by the City Council prior to commencement of the services or work.
(d) For construction contracts funded in whole or in part by
Certificates of Obligations, a contract with a GMP of $1 million or more may not
be increased by more than twenty-five percent (25%). If a change order for a
construction contract funded in whole or in part with certificates of obligation that
has a GMP of less than $1 million increases the contract amount to $1 million or
more, subsequent change orders may not increase the revised contract amount by
more than twenty-five percent (25%). Written change orders may be made or
approved by the City Manager or his delegate if the change order is less than Fifty
Thousand Dollars ($50,000.00). Changes in excess of Fifty Thousand Dollars
($50,000.00) must be approved by the City Council prior to commencement of the
services or work.
1.9.2.2 Methods used in determining adjustments to the Contract Sum
may include those listed below:
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(a) mutual acceptance of a lump sum properly itemized and
supported by sufficient substantiating data to permit evaluation;
(b) unit prices stated in Contract Documents or subsequently
agreed upon;
(c) cost shall be determined in a manner agreed upon by the
parties and a mutually acceptable fixed fee, or the percentage fee established at
Subparagraph 1.9.3.6., or
(d) as provided in Subparagraph 1.9.3.6.
1.9.2.3 Agreement on any Change Order shall constitute a final
settlement of all Claims by the Contractor directly or indirectly arising out of or relating to
the change in Work which is the subject of the Change Order, including, but not limited to,
all direct and indirect costs and impact costs associated with such change and any and all
adjustments to the Contract Sum and the Contract Time.
1.9.3 Construction Change Directives.
1.9.3.1 A Construction Change Directive is a written order prepared
by the Architect and signed by the City and Architect, directing a change in the Work prior
to agreement on adjustment, if any, in the Contract Sum or Contract Time, or both. The City
may by Construction Change Directive, without invalidating the Contract, order changes in
the Work within the general scope of the Contract consisting of additions, deletions or other
revisions, the Contract Sum and Contract Time being adjusted accordingly.
1.9.3.2 A Construction Change Directive shall be used in the absence
of total agreement on the terms of a Change Order.
1.9.3.3 The Construction Change Directive shall include a unilateral
change in the Contract Sum and/or Contract Time reflecting the City’s view of the
appropriate change in the Contract Sum and/or Contract Time for the change in Work
covered by the Construction Change Directive. Until agreement is reached by the City and
Contractor on these issues, the changes in Contract Sum and Contract Time set out in the
Construction Change Directive shall be used for Schedule of Values, payment and
scheduling purposes.
1.9.3.4 Upon receipt of a Construction Change Directive, the
Contractor shall promptly proceed with the change in the Work involved and advise the
Architect of the Contractor’s agreement or disagreement with the method, if any, provided
in the Construction Change Directive for determining the proposed adjustment in the
Contract Sum or Contract Time.
1.9.3.5 A Construction Change Directive signed by the Contractor
indicates the agreement of the Contractor therewith, including adjustment in Contract Sum
and Contract Time or the method for determining them. Such agreement shall be effective
immediately and shall be recorded as a Change Order.
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CMAR- Construction
Form Revised on 11-15-17
1.9.3.6 In the absence of an agreement between City and Contractor
on the proper change to the Contract Sum or Contract Time because of a change in the
Work, Contractor may treat the matter as a Claim under Paragraph 1.6.3. In such event, the
Contractor shall be entitled to recover only the amount by which the Cost of the Work has
been reasonably increased over the Cost of Work without the change in the Work, plus five
percent (5%).
1.9.3.7 Pending final determination of the cost of a Construction
Change Directive to the City, amounts not in dispute may be included in Applications for
Payment. The amount of credit to be allowed by the Contractor to the City for a deletion or
change which results in a net decrease in the Contract Sum shall be actual net cost as
confirmed by the Architect. When both additions and credits covering related Work or
substitutions are involved in a change, the allowance for overhead and profit shall be figured
on the basis of net increase, if any, with respect to that change.
1.9.4 Minor Changes In The Work.
1.9.4.1 The Architect will have authority to order minor changes in
the Work not involving adjustment in the Contract Sum or extension of the Contract Time
and not inconsistent with the intent of the Contract Documents. Such changes shall be
effected by written order and shall be binding on the City and Contractor. The Contractor
shall carry out such written orders promptly.
1.9.5 Changes Funded By Allowances.
1.9.5.1 Allowances balances may be used to fund changes in the
Work. The Contractor will not be allowed an overhead and profit mark-up when changes
in the Work are funded by one of the Allowances.
1.10 Time.
1.10.1 Definitions.
1.10.1.1 Unless otherwise provided, Contract Time is the period of
time, including authorized adjustments, allotted in the Contract Documents for Substantial
Completion of the Work.
1.10.1.2 The date of commencement of the Work is the date established
in the Agreement. The date shall not be postponed by the failure to act of the Contractor or
of persons, or entities for whom the Contractor is responsible.
1.10.1.3 The date of Substantial Completion is the date certified by the
Architect in accordance with Paragraph 1.11.8.
1.10.1.4 The term “day” as used in the Contract Documents shall mean
calendar day unless otherwise specifically defined.
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1.10.2 Progress And Completion.
1.10.2.1 Time limits stated in the Contract Documents are of the
essence of the Contract. By executing the Agreement the Contractor confirms that the
Contract Time is a reasonable period for performing the Work.
1.10.2.2 The Contractor shall not knowingly, except by agreement or
instruction of the City in writing, prematurely commence operations on the site or elsewhere
prior to the effective date of insurance required by Paragraph 1.13 to be furnished by the
Contractor and Owner. The date of commencement of the Work shall not be changed by the
effective date of such insurance. Unless the date of commencement is established by the
Contract Documents or a Notice to Proceed given by the City, the Contractor shall notify
the City in writing not less than five days or other agreed period before commencing the
Work to permit the timely filing of mortgages, mechanic’s liens and other security interests.
1.10.2.3 The Contractor shall proceed expeditiously with adequate
forces and shall achieve Substantial Completion within the Contract Time.
1.10.3 Delays And Extensions Of Time.
1.10.3.1 If the Contractor is delayed in performing Work that is critical
to the overall completion of the Work by an act or neglect of the City or Architect, or a
separate contractor employed by the City, or by changes ordered in the Work, or by labor
disputes, unavoidable casualties, including fire, or by unusually adverse weather conditions,
as defined below, then the Contract Time shall be extended for a reasonable time to reflect
the impact of the delay on Work critical to achieve Substantial Completion within the
Contract Time, provided the performance of the Work was not delayed by any other cause
for which the Contractor is not entitled to an extension in the Contract Time under the
Contract Documents. Adjustments in the Contract Time will be permitted for a delay only
to the extent such delay is not caused or could not have been anticipated by the Contractor,
and could not be limited or avoided by the Contractor’s timely notice to the City of the
delay, and only if Contractor satisfies the conditions of Paragraph 1.10.3.2. Contractor has
the burden to prove that any of the foregoing alleged causes of delay significantly impacted
construction progress on the critical path, as a condition precedent to any extension of
Contract Time.
1.10.3.2 On or before the fifteenth (15) day of each month of the Work,
Contractor shall submit in writing a request for all time extensions to which it believes itself
to be entitled for the preceding month, other than time extensions for changes in Work,
which are to be submitted in accordance with the requirements of Paragraph 1.9. If
Contractor’s request for time extension for changes in the Work is denied and Contractor
wishes to pursue the matter, Contractor shall submit in writing a request for that extension
by the fifteenth (15) day of the month following the denial. Any claim for time extension
not submitted under the terms of this Subparagraph shall be waived.
1.10.3.3 City, after consultation with the Architect, shall grant time
extensions to the extent it believes them to be proper. Time extensions granted by the City
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Form Revised on 11-15-17
may be incorporated into schedules for completion of the Work. In the event that Contractor
believes that it is entitled to additional time extensions beyond those granted by the City, it
may make a claim for them provided it can meet the requirements of Paragraph 1.6.3.
1.11 Payments And Completion.
1.11.1 Contract Sum.
1.11.1.1 The Contract Sum is stated in the Agreement and, including
authorized adjustments, is the total amount payable by the City to the Contractor for
performance of the Work under the Contract Documents.
1.11.2 Schedule Of Values.
1.11.2.1 Before the first Application for Payment, the Contractor shall
submit to the Architect a Schedule of Values fairly allocating the various portions of the
Work, prepared in such form and supported by such data to substantiate its accuracy as
reasonably required by the Architect. Once approved by the Architect and updated for
changes in the Work, the Schedule of Values shall be used as a basis for reviewing the
Contractor’s Applications for Payment and is not to be taken as evidence of market or other
value. The Schedule of Values shall not overvalue early job activities. The Contractor’s
Fee shall be shown as a single separate item. The Schedule of Values shall follow the trade
divisions of the Specification so far as practicable.
In order to facilitate the review of Applications for Payment, the Schedule of Values shall
be submitted on forms approved by the Owner, and shall include the following:
(a) Contractor’s costs for Contractor’s Fee, bonds and
insurance, mobilization, etc., shall be listed as individual line items.
(b) Contractor’s costs for various construction items shall be
detailed. For example, concrete work shall be subdivided into footings, grade
beams, floor slabs, paving, etc. These subdivisions shall appear as individual line
items.
(c) On major subcontracts, such as mechanical, electrical and
plumbing, the Schedule of Values shall indicate line items and amounts in detail
(for example: underground, major equipment, fixtures, installation of fixtures, start
up, etc.).
(d) Costs for subcontract Work shall be listed without any
addition of Contractor’s costs for overhead, profit or supervisions.
(e) Where payment for stored materials may be requested prior
to installation, material and labor shall be listed as separate line items.
(f) Sample pages from an approved Schedule of Values are
included following this document.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
1.11.3 Applications For Payment.
1.11.3.1 At the time specified in the Agreement, the Contractor shall
submit to the Architect an itemized Application for Payment for operations completed in
accordance with the Schedule of Values. Such application shall be notarized, if required,
and supported by such data substantiating the Contractor’s right to payment as the City or
Architect may require, such as copies of requisitions from Subcontractors and material
suppliers, and reflecting retainage if provided for in the Contract Documents. Unless
otherwise agreed, the Contractor shall submit requests for payment in quadruplicate
originals using for the “top sheets”, originals of APPLICATION AND CERTIFICATE FOR
PAYMENT; continuation sheets showing in detail the amounts requested, etc., may be
submitted on CONTINUATION SHEET(S) in a format approved by the Architect. All
blank spaces must be completed and the signatures of the Contractor and Notary Public shall
be original on each form. By submitting its Application for Payment, the Contractor
certifies that the individual signing the application is authorized to do so. Additionally, if
the Contractor prepares its Application for Payment utilizing “Excel” spreadsheet software,
it shall submit a ”thumbdrive” or otherwise make such spreadsheet available electronically
with each application for payment to facilitate the Architect’s review of the application.
1.11.3.1.1 Such applications may not include requests for
payment for portions of the Work for which the Contractor does not intend to pay
to a Subcontractor or material supplier, unless such Work has been performed by
others whom the Contractor intends to pay.
1.11.3.2 Unless otherwise provided in the Contract Documents,
payments shall be made on account of materials and equipment delivered and suitably stored
at the site for subsequent incorporation in the Work. If approved in advance by the City,
payment may similarly be made for materials and equipment suitably stored off the site at
a location agreed upon in writing. Payment for materials and equipment stored on or off the
site shall be conditioned upon compliance by the Contractor with procedures satisfactory to
the City to establish the City’s title to such materials and equipment or otherwise protect the
City’s interest, and shall include the costs of applicable insurance, storage and transportation
to the site for such materials and equipment stored off the site. Upon payment by the City
of the invoiced cost, title to all such materials and equipment shall irrevocably pass to the
City. The Contractor warrants that title to all materials and equipment covered by an
Application for Payment will pass to City upon the receipt of payment by the Contractor.
Such title shall be free and clear of all liens, claims, security interests or encumbrances. No
work, materials or equipment covered by an Application for Payment shall be subject to an
agreement under which an interest is retained or encumbrance is attached by the seller, the
Contractor, or other party.
1.11.3.3 The Contractor warrants that title to all Work covered by an
Application for Payment will pass to the City no later than the time of payment. The
Contractor further warrants that upon submittal of an Application for Payment all Work for
which Certificates for Payment have been previously issued and payments received from
the City shall, to the best of the Contractor’s knowledge, information and belief, be free and
clear of liens, claims, security interests or encumbrances in favor of the Contractor,
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Subcontractors, material suppliers, or other persons or entities making a claim by reason of
having provided labor, materials and equipment relating to the Work.
1.11.4 Certificates For Payment.
1.11.4.1 The Application for Payment will be reviewed first by the
Architect who will certify to the City that portion, if any, of the Application for Payment it
has determined is properly due. In the event that the Architect believes that payment should
be withheld, in whole or in part, it will notify the City and Contractor of the basis of this
view as provided in Subparagraph 1.11.5.1.
1.11.4.2 The issuance of a Certificate for Payment will constitute a
representation by the Architect to the City, based on the Architect’s evaluation of the Work
and the data comprising the Application for Payment, that the Work has progressed to the
point indicated and that, to the best of the Architect’s knowledge, information and belief,
the quality of the Work is in accordance with the Contract Documents. The foregoing
representations are subject to an evaluation of the Work for conformance with the Contract
Documents upon Substantial Completion, to results of subsequent tests and inspections, to
correction of minor deviations from the Contract Documents prior to completion and to
specific qualifications expressed by the Architect. The issuance of a Certificate for Payment
will further constitute a representation that the Contractor is entitled to payment in the
amount certified. However, the issuance of a Certificate for Payment will not be a
representation that the Architect has (1) made exhaustive or continuous on-site inspections
to check the quality or quantity of the Work, (2) reviewed construction means, methods,
techniques, sequences or procedures, (3) reviewed copies of requisitions received from
Subcontractors and material suppliers and other data requested by the City to substantiate
the Contractor’s right to payment, or (4) made examination to ascertain how or for what
purpose the Contractor has used money previously paid on account of the Contract Sum.
1.11.4.3 The issuance of a Certificate of Payment shall constitute a
recommendation to the City in respect to the amount to be paid. This recommendation is
not binding on the City if City knows of other reasons under the Contract why payment
should be withheld.
1.11.4.4 The Architect will affix his signature to the same form
described in Paragraph 1.11.4.1. to signify his certification of payment provided the
application is otherwise satisfactory.
1.11.5 Decisions To Withhold Certification.
1.11.5.1 The Architect may withhold a Certificate for Payment in
whole or in part, to the extent reasonably necessary to protect the City, if in the Architect’s
opinion the representations to the City required by Paragraph 1.11.4.2. cannot be made. If
the Architect is unable to certify payment in the amount of the Application, the Architect
will notify the Contractor and City as provided in Paragraph 1.11.4.1. If the Contractor and
Architect cannot agree on a revised amount, the Architect will promptly issue a Certificate
for Payment for the amount for which the Architect is able to make such representations to
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the City. The Architect may also withhold a Certificate for Payment or, because of
subsequently discovered evidence, may nullify the whole or a part of a Certificate for
Payment previously issued, to such extent as may be necessary in the Architect’s opinion to
protect the City from loss for which the Contractor is responsible, including loss resulting
from acts and omissions described in Paragraph 1.5.5.2., because of:
(a) defective Work not remedied;
(b) third party claims filed or reasonable evidence indicating
probable filing of such claims unless security acceptable to the City is provided by
the Contractor;
(c) failure of the Contractor to make payments properly to
Subcontractors or for labor, materials or equipment;
(d) reasonable evidence that the Work cannot be completed for
the unpaid balance of the Contract Sum;
(e) damage to the City or another contractor;
(f) reasonable evidence that the Work will not be completed
within the Contract Time, and that the unpaid balance would not be adequate to
cover actual or liquidated damages for the anticipated delay; or
(g) persistent failure to carry out the Work in accordance with
the Contract Documents.
1.11.5.2 When the above reasons for withholding certification are
removed, certification will be made for amounts previously withheld.
1.11.6 Progress Payments.
1.11.6.1 After the Architect has issued a Certificate for Payment, the
City shall make payment in the manner and within the time provided in the Contract
Documents, and shall so notify the Architect. If the City believes the Contractor is not
current in its legitimate obligations to suppliers, laborers and/or Subcontractors on the
Project, City may (but is not obligated to) withhold payment until it receives partial or final
releases, or other reasonable proof from the Contractor that this situation does not exist.
1.11.6.2 The Contractor shall promptly pay each Subcontractor, upon
receipt of payment from the City, out of the amount paid to the Contractor on account of
such Subcontractor’s portion of the Work, the amount to which said Subcontractor is
entitled, reflecting percentages actually retained from payments to the Contractor on
account of such Subcontractor’s portion of the Work. The Contractor shall, by appropriate
agreement with each Subcontractor, require each Subcontractor to make payments to Sub-
subcontractors in a similar manner. City is not obligated to monitor payments to
Subcontractors or Sub-subcontractors, and nothing in this paragraph shall create any right
on the part of a Subcontractor or Sub-subcontractor against City.
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Form Revised on 11-15-17
1.11.6.3 The Architect will, on request, furnish to a Subcontractor, if
practicable, information regarding percentages of completion or amounts applied for by the
Contractor and action taken thereon by the Architect and City on account of portions of the
Work done by such Subcontractor.
1.11.6.4 Neither the City nor Architect shall have an obligation to pay
or to see to the payment of money to a Subcontractor or Sub-subcontractor.
1.11.6.5 Payment to material suppliers shall be treated in a manner
similar to that provided in Paragraphs 1.11.6.2., 1.11.6.3. and 1.11.6.4.
1.11.6.6 A Certificate for Payment, a progress payment, or partial or
entire use or occupancy of the Project by the City shall not constitute acceptance of Work
not in accordance with the Contract Documents.
1.11.7 Failure Of Payment.
1.11.7.1 If the City incurs any costs and expenses to cure any default of
the Contractor or to correct defective Work, the City shall have an absolute right to offset
such amount against the Contract Sum under this Contract, and may, in the City’s sole
discretion, elect either to: (1) deduct an amount equal to that to which the Owner is entitled,
or (2) issue a written notice to the Contractor reducing the GMP by an amount equal to that
to which the Owner is entitled.
1.11.8 Substantial Completion.
1.11.8.1 When the Contractor considers that the Work, or a portion
thereof which the City agrees to accept separately, is substantially complete, the Architect
and City shall review the punch list prepared by Contractor and supplement the list as
necessary. Failure to include an item on such list does not alter the responsibility of the
Contractor to complete all Work in accordance with the Contract Documents.
1.11.8.1.1 The Contractor’s superintendent shall participate in the
preparation of the Contractor’s punch list that is submitted to the Architect and
City for supplementation. Upon receipt, the Architect shall perform a spot review
to determine the adequacy and completeness of the Contractor’s punch list.
Should the Architect determine that the Contractor’s punch list lacks sufficient
detail or requires extensive supplementation, the punch list will be returned to the
Contractor for further inspection and revision. The date of Substantial
Completion will be delayed until the punch list submitted is a reasonable
representation of the work to be done.
1.11.8.1.2 Upon receipt of an acceptable Contractor’s punch list,
the Contractor’s superintendent shall accompany the Architect, its Consultants
and the City (at its discretion) during their inspections and the preparation of their
supplements to the Contractor’s punch list. The superintendent shall record or
otherwise take note of all supplementary items. The Architect will endeavor to
furnish to the Contractor typed, hand written or recorded supplements to the
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punch list in a prompt manner; however, any delay in the Contractor’s receiving
said supplements from the Architect shall not be cause for a claim for additional
cost or extension of time.
1.11.8.2 When the Contractor notifies Architect that it has completed
or corrected items on the punch list, the Architect will make an inspection to determine
whether the Work or designated portion thereof is substantially complete. If the Architect’s
inspection discloses any item, whether or not included on the Contractor’s punch list, which
is not sufficiently complete in accordance with the Contract Documents so that the City can
occupy or utilize the Work or designated portion thereof for its intended use, the Contractor
shall, before issuance of the Certificate of Substantial Completion, complete or correct such
item upon notification by the Architect. In such case, the Contractor shall then submit a
request for another inspection by the Architect to determine Substantial Completion. Any
further inspections by the Architect for the purpose of determining the Project is
Substantially Complete shall be at Contractor’s cost and the City may deduct such cost from
any amount payable to Contractor hereunder.
1.11.8.3 When the Work or designated portion thereof is substantially
complete, the Architect will prepare a Certificate of Substantial Completion which shall
establish the date of Substantial Completion, shall establish responsibilities of the City and
Contractor for security, maintenance, heat, utilities, damage to the Work and insurance, and
shall fix the time within which the Contractor shall finish all items on the list accompanying
the Certificate. Warranties required by the Contract Documents shall commence on the date
of Substantial Completion of the Work or designated portion thereof unless otherwise
provided in the Certificate of Substantial Completion.
1.11.8.4 The Certificate of Substantial Completion shall be submitted
to the City and Contractor for their written acceptance of responsibilities assigned to them
in such Certificate. Upon such acceptance and consent of surety, if any, the City, in its sole
discretion, may make payment of retainage applying to such Work or designated portion
thereof. Such payment shall be adjusted for Work that is incomplete or not in accordance
with the requirements of the Contract Documents.
1.11.8.5 The Contractor shall keep all required insurance in full force,
and utilities on, until the Certificate of Substantial Completion is issued, and accepted by
the City in writing, regardless of the stated date of Substantial Completion. Acceptance
shall not be unreasonably withheld.
1.11.9 Partial Occupancy Or Use.
1.11.9.1 The City may occupy or use any completed or partially
completed portion of the Work at any stage when such portion is designated by separate
agreement with the Contractor, provided such occupancy or use is consented to by the
insurer as required under Paragraph 1.13.3.1. and authorized by public authorities having
jurisdiction over the Work. Such partial occupancy or use may commence whether or not
the portion is substantially complete, provided the City and Contractor have accepted in
writing the responsibilities assigned to each of them for payments, retainage, if any, security,
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Form Revised on 11-15-17
maintenance, heat, utilities, damage to the Work and insurance, and have agreed in writing
concerning the period for correction of the Work and commencement of warranties required
by the Contract Documents.
1.11.9.2 Immediately prior to such partial occupancy or use, the City,
Contractor and Architect shall jointly inspect the area to be occupied or portion of the Work
to be used in order to determine and record the condition of the Work.
1.11.9.3 Unless otherwise agreed upon, partial occupancy or use of a
portion or portions of the Work shall not constitute acceptance of Work not complying with
the requirements of the Contract Documents.
1.11.10 Final Completion And Final Payment.
1.11.10.1 Upon receipt of written notice that the Work is ready for final
inspection and acceptance and upon receipt of a final Application for Payment, the Architect
will promptly make such inspection and, when the Architect finds the Work acceptable
under the Contract Documents and the Contract fully performed, the Architect will promptly
issue a final Certificate for Payment stating that to the best of the Architect’s knowledge,
information and belief, and on the basis of the Architect’s on-site visits and inspections, the
Work has been completed in accordance with terms and conditions of the Contract
Documents and that the entire balance found to be due the Contractor and noted in the final
Certificate is due and payable. The Architect’s final Certificate for Payment will constitute
a further representation that conditions listed in Paragraph 1.11.10.2. as precedent to the
Contractor’s being entitled to final payment have been fulfilled.
Prior to final payment, the Contractor shall submit in triplicate to the Architect the
following completed forms:
(a) Contractor’s Affidavit of Payment of Debts and Claims;
(b) Contractor’s Affidavit of Release of Liens;
(c) Consent of Surety to Final Payment (if applicable);
(d) Subcontractor’s Unconditional Releases – each signed and
notarized on a single piece of paper;
(e) Maintenance and inspection manuals – three (3) sets of each
bound in a 3 inch “D-slant” ring binder;
(f) Final list of subcontractors;
(g) one (1) complete set of marked-up copies of the Drawings
and Specifications accurately showing the Project as constructed. Such
Specifications and Drawings shall be marked to show all changes and modifications
that have been incorporated into the Work as performed;
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Form Revised on 11-15-17
(h) other data establishing payment or satisfaction of
obligations, such as receipts, releases and waivers of liens, claims, security interests
or encumbrances arising out of the Contract, to the extent and in such form as may
be designated by the City; and
(i) any other “Closeout Documents” required under the
Contract Documents.
Documents identified as affidavits must be notarized. All manuals will contain an index
listing the information submitted. The index sections will be divided and identified by
tabbing each section as listed in the index. Upon request, the Architect will furnish the
Contractor with blank copies of the forms listed above. Final payment, constituting the
entire unpaid balance of the Contract Sum shall be paid by the City to the Contractor sixty
(60) days after Substantial Completion of the Work, unless otherwise stipulated in the
Certificate of Completion, provided the Contract is fully performed, and Final Certificate
of Payment has been issued by the Architect. The City may accept certain portions of the
Work as being complete prior to the acceptance of the entire Project. If certain areas are
accepted by the City as being completed, and if the Contractor has completed all of the
requirements for final payment of the portion of Work, the City may, but is not required
to, release retainage for that area/portion of Work. Amounts of retainage shall be agreed
upon by both City and Contractor prior to final acceptance of these areas.
1.11.10.2 If, after Substantial Completion of the Work, final completion
thereof is materially delayed through no fault of the Contractor or by issuance of Change
Orders affecting final completion, and the Architect so confirms, the City shall, upon
application by the Contractor and certification by the Architect, and without terminating the
Contract, make payment of the balance due for that portion of the Work fully completed
and accepted. If the remaining balance for Work not fully completed or corrected is less
than retainage stipulated in the Contract Documents, and if bonds have been furnished, the
written consent of surety to payment of the balance due for that portion of the Work fully
completed and accepted shall be submitted by the Contractor to the Architect prior to
certification of such payment. Such payment shall be made under terms and conditions
governing final payment, except that it shall not constitute a waiver of claims.
1.11.10.3 Acceptance of final payment by the Contractor shall constitute
a waiver of claims by Contractor except for any Claims then pending that comply with the
requirements of Paragraph 1.6.3.
1.12 Protection Of Persons And Property.
1.12.1 Safety Precautions And Programs.
1.12.1.1 The Contractor shall be responsible for initiating, maintaining
and supervising all necessary safety precautions and programs in connection with the
performance of the Contract.
1.12.2 Safety Of Persons And Property.
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Form Revised on 11-15-17
1.12.2.1 The Contractor shall take reasonable precautions for safety of,
and shall provide reasonable protection to prevent damage, injury or loss to:
(a) employees on the Work and other persons who may be
affected thereby including but not limited to the City’s employees, invitees and the
general public;
(b) the Work and materials and equipment to be incorporated
therein, whether in storage on or off the site, under care, custody or control of the
Contractor or the Contractor’s Subcontractors or Sub-subcontractors; and
(c) other property at the site or adjacent thereto, such as trees,
shrubs, lawns, walks, pavements, roadways, structures and utilities not designated
for removal, relocation or replacement in the course of construction.
1.12.2.2 The Contractor shall give notices and comply with applicable
laws, ordinances, rules, regulations and lawful orders of public authorities bearing on safety
of persons or property or their protection from damage, injury or loss.
1.12.2.3 The Contractor shall erect and maintain, as required by
existing conditions and performance of the Contract, reasonable safeguards for safety and
protection, including posting danger signs and other warnings against hazards, promulgating
safety regulations and notifying owners and users of adjacent sites and utilities.
1.12.2.4 When use or storage of explosives or other hazardous
materials or equipment or unusual methods are necessary for execution of the Work, the
Contractor shall exercise utmost care and carry on such activities under supervision of
properly qualified personnel. When use or storage of explosives or other hazardous
materials or equipment or unusual construction methods are necessary, the Contractor shall
give the City and Architect reasonable advance notice of the presence or use of such
materials, equipment or methods.
1.12.2.5 The Contractor shall promptly remedy damage and loss (other
than damage or loss insured under property insurance required by the Contract Documents)
to property referred to in Paragraphs 1.12.2.1(b). and 1.12.2.1.(c). caused in whole or in part
by the Contractor, a Subcontractor, a Sub-subcontractor, or anyone directly or indirectly
employed by any of them, or by anyone for whose acts they may be liable and for which the
Contractor is responsible under Paragraphs 1.12.2.1, except damage or loss attributable to
acts or omissions of the City or Architect or anyone directly or indirectly employed by either
of them, or by anyone for whose acts either of them may be liable, and not attributable to
the fault or negligence of the Contractor. The foregoing obligations of the Contractor are in
addition to the Contractor’s obligations under Paragraph 1.5.19.6.
1.12.2.6 The Contractor shall designate a responsible member of the
Contractor’s organization at the site whose duty shall be the prevention of accidents. This
person shall be the Contractor’s superintendent unless otherwise designated by the
Contractor in writing to the Owner and Architect.
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1.12.2.7 The Contractor shall not load or permit any part of the
construction or site to be loaded so as to endanger its safety.
1.12.2.8 Suspension of all or a portion of the Work, for any reason, shall
not relieve the Contractor of its obligations under Paragraph 1.12.2.
1.12.2.9 The Contractor shall promptly report in writing to the City and
Architect all accidents arising out of or in connection with the Work which cause death,
personal injury, or property damage, giving full details and statement of any witnesses. In
addition, if death, serious personal injuries, or serious property damages are caused, the
accident shall be reported immediately by telephone or messenger to City and Architect.
1.12.2.10 The Contractor shall be responsible for the protection and
security of the Work and the Project, until it receives written notification that the Substantial
Completion of the Work has been accepted by the City unless otherwise provided in the
Certificate of Substantial Completion.
1.12.3 Hazardous Materials.
1.12.3.1 Contractor agrees that it shall not transport to, use, generate,
dispose of, or install at the Project site any Hazardous Substance (as defined in 1.12.3.1.3.),
except in accordance with applicable Environmental Laws. Further, in performing the
Work, Contractor shall not cause any release of Hazardous Substances into, or
contamination of, the environment, including the soil, the atmosphere, any water course or
ground water, except in accordance with applicable Environmental Laws (as hereafter
defined at Paragraph 1.12.3.1.3). In the event Contractor engages in any of the activities
prohibited in this Paragraph 1.12.3.1. to the fullest extent permitted by law, Contractor
hereby indemnifies and holds City, Architect and all of their respective officers, agents
and employees harmless from and against any and all claims, damages, losses, causes
of action, suits, and liabilities of every kind, including, but not limited to, expenses of
litigation, court costs, punitive damages and attorneys’ fees, arising out of, incidental
to or resulting from the activities prohibited in this Paragraph 1.12.3.
1.12.3.1.1 In the event Contractor encounters on the Project site
any Hazardous Substance, or what Contractor may reasonably believe to be a
Hazardous Substance, and which is being introduced to the Work, or exists on the
Project site, in a manner violative of any applicable Environmental Laws,
Contractor shall immediately stop work in the area affected and report the
condition to City and Architect in writing. The Work in the affected area shall
not thereafter be resumed except by written authorization of City if in fact a
Hazardous Substance has been encountered and has not been rendered harmless.
In the event Contractor fails to stop the Work upon encountering a Hazardous
Substance at the Project site, to the fullest extent permitted by law, Contractor
hereby indemnifies and holds City, Architect and all of their respective
officers, agents and employees harmless from and against any and all claims,
damages, losses, causes of action, suits, and liabilities of every kind,
including, but not limited to, expenses of litigation, court costs, punitive
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damages and attorneys’ fees, arising out of, incidental to or resulting from
Contractor’s failure to stop the Work.
1.12.3.1.2 City and Contractor may enter into a separate
agreement and/or Change Order for Contractor to remediate and/or render
harmless the Hazardous Substance, but Contractor shall not be required to
remediate and/or render harmless the Hazardous Substance absent such
agreement. Contractor shall not be required to resume work in any area affected
by the Hazardous Substance until such time as the Hazardous Substance has been
remediated and/or rendered harmless.
1.12.3.1.3 For purposes of this Agreement, the term “Hazardous
Substance” shall mean and include any element constituent, chemical, substance,
compound, or mixture, which are defined as a hazardous substance by any local,
state or federal law, rule, ordinance, by-law, or regulation pertaining to
environmental regulation, contamination, clean-up or disclosure, including,
without limitation, The Comprehensive Environmental Response, Compensation
and Liability Act (“CERCLA”), The Resource Conservation and Recovery Act
(“RCRA”), The Toxic Substances Control Act (“TSCA”), The Clean Water Act
(“CWA”), The Clean Air Act (“CAA”), the Marine Protection Research and
Sanctuaries Act (“MPRSA”), The Occupational Safety and Health Act
(“OSHA”), The Superfund Amendments and Reauthorization Act of 1986
(“SARA”), or other state superlien or environmental clean-up or disclosure
statutes including all state and local counterparts of such laws (all such laws, rules
and regulations being referred to collectively as “Environmental Laws”). It is the
Contractor’s responsibility to comply with Paragraph 1.12.3.1 based on the law
in effect at the time its services are rendered and to comply with any amendments
to those laws for all services rendered after the effective date of any such
amendments.
1.12.4 Emergencies.
1.12.4.1 In an emergency affecting safety of persons or property, the
Contractor shall act, at the Contractor’s discretion, to prevent threatened damage, injury or
loss. Additional compensation or extension of time claimed by the Contractor on account
of an emergency shall be determined as provided in Paragraph 1.6.3. and Paragraph 1.9.
1.13 Insurance And Bonds.
1.13.1 Contractor’s Liability Insurance.
1.13.1.1 The Contractor shall purchase and maintain insurance as
shown in Exhibit B to the Agreement.
1.13.2 Certificates of Insurance.
1.13.2.1 Certificates of Insurance shall be prepared and executed by
the insurance company or its authorized agent and must be provided as Exhibit D.
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1.13.3 Property Insurance.
1.13.3.1 Partial occupancy or use in accordance with Paragraph 1.11.9.
shall not commence until the insurance company or companies providing property insurance
have consented to such partial occupancy or use by endorsement or otherwise. The City and
the Contractor shall take reasonable steps to obtain consent of the insurance company or
companies and shall, without mutual written consent, take no action with respect to partial
occupancy or use that would cause cancellation, lapse or reduction of insurance.
1.13.3.2 Loss of Use Insurance. The City, at the City’s option, may
purchase and maintain such insurance as will insure the City against loss of use of the City’s
property due to fire or other hazards, however caused.
1.13.3.3 If the Contractor requests in writing that insurance for risks
other than those described herein or other special causes of loss be included in the property
insurance policy, the City shall, at City’s option, include such insurance, and the cost thereof
shall be charged to the Contractor by appropriate Change Order.
1.13.3.4 If during the Project construction period the City insures
properties, real or personal or both, at or adjacent to the site by property insurance under
policies separate from those insuring the Project, or if after final payment property insurance
is to be provided on the completed Project through a policy or policies other than those
insuring the Project during the construction period, the City shall waive all rights for
damages caused by fire or other causes of loss covered by this separate property insurance.
All separate policies shall provide this waiver of subrogation by endorsement or otherwise.
1.13.3.5 A loss insured under City’s property insurance shall be
adjusted by the City and made payable to the City for the insureds, as their interests may
appear, subject to requirements of Paragraph 1.13.3. The Contractor shall pay
Subcontractors their just shares of insurance proceeds received by the Contractor, and by
appropriate agreements, written where legally required for validity, shall require
Subcontractors to make payments to their Sub-subcontractors in similar manner.
1.13.3.6 If after such loss no other special agreement is made and unless
the City terminates the Contract for convenience, replacement of damaged property shall be
performed by the Contractor after notification of a Change in the Work in accordance with
Paragraph 1.9.
1.13.3.7 The Owner shall have power to adjust and settle a loss with
insurers unless one of the parties in interest shall object in writing within five days after
occurrence of loss to the City’s exercise of this power; if such objection is made, the dispute
shall be resolved as provided in Paragraph 1.6.3.
1.13.4 Performance Bond And Payment Bond.
1.13.4.1 Pursuant to Chapter 2253 of the Texas Government Code, for
all public works contracts with governmental entities, a payment bond is required if the
Contract Amount exceeds $25,000, and a performance bond is required if the Contract
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Amount exceeds $100,000. Below those amounts, the City may require payment and/or
performance bonds. In the event a performance or payment bond or both is required either
by law or in the City’s discretion, such bonds shall be executed in accordance with all
requirements of Article 7.19-1 of the Texas Insurance Code, all other applicable law, and
the following:
(a) The Contractor shall execute performance and payment
bonds for the full Contract Amount in the forms attached hereto as Exhibit C.
(b) The bond surety shall be authorized under the laws of the
State of Texas to provide a performance and payment bond and shall have attached
proof of authorization of the surety to act in the performance and payment of bonds.
(c) The Contractor shall provide original, sealed, and complete
counterparts of the executed bonds in the forms required by the Contract
Documents, which are attached as Exhibit C, together with valid original powers of
attorney, at the time of execution of this Agreement and prior to the commencement
of Work. Copies of the executed bonds shall be attached hereto as Exhibit C.
(d) The performance and payment bonds shall remain in effect
for a period of one (1) year after Final Completion of the Work and shall be
extended for any warranty work to cover the warranty period.
(e) If at any time during the execution of this Agreement in the
required period thereafter, the bond or bonds become invalid or ineffective for any
reason, the Contractor shall promptly supply within ten (10) days such other bond
or bonds, which bond or bonds shall assure performance or payment as required.
1.13.4.2 The Contractor may make such changes and alterations as the
City may require in the Work or any part thereof without affecting the validity of this
Agreement and any accompanying bond. If such changes or alterations diminish the
quantity of the Work to be done, they shall not constitute the basis for any claim for damages
or anticipated profits. If the City makes changes or alterations that render useless any Work
already done or material already used in said Work, then the City shall compensate the
Contractor for any material or labor so used, and for any actual loss occasioned by such
change due to actual expenses incurred in preparation for the work as originally planned.
1.14 Uncovering And Correction Of Work.
1.14.1 Uncovering Of Work.
1.14.1.1 If a portion of the Work is covered contrary to the Architect’s
request or to requirements specifically expressed in the Contract Documents, it must, if
required in writing by the Architect, be uncovered for the Architect’s examination and be
replaced at the Contractor’s expense without change in the Contract Time.
1.14.1.2 If a portion of the Work has been covered which the Architect
has not specifically requested to examine prior to its being covered, the Architect may
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request to see such Work and it shall be uncovered by the Contractor. If such Work is in
accordance with the Contract Documents, costs of uncovering and replacement shall, by
appropriate Change Order, be at the City’s expense. If such Work is not in accordance with
the Contract Documents, correction shall be at the Contractor’s expense.
1.14.2 Correction Of Work.
1.14.2.1 Before Or After Substantial Completion.
1.14.2.1.1 The Contractor shall promptly correct Work
rejected by the Architect or failing to conform to the requirements of the Contract
Documents, whether discovered before or after Substantial Completion and
whether or not fabricated, installed or completed. Costs of correcting such
rejected Work, including additional testing and inspections and compensation for
the Architect’s services and expenses made necessary thereby, shall be at the
Contractor’s expense.
1.14.2.2 After Substantial Completion.
1.14.2.2.1 In addition to the Contractor’s obligations under
Paragraph 1.5.7., if, within one year after the date of Substantial Completion of
the Work or designated portion thereof or after the date for commencement of
warranties established under Paragraph 1.11.9.1., or by terms of an applicable
special warranty required by the Contract Documents, any of the Work is found
to be not in accordance with the requirements of the Contract Documents, the
Contractor shall correct it promptly after receipt of written notice from the City
to do so unless the City has previously given the Contractor a written acceptance
of such condition. The City shall give such notice promptly after discovery of the
condition. If the Contractor fails to correct nonconforming Work within a
reasonable time during that period after receipt of notice from the City or
Architect, the City may correct it in accordance with Paragraph 1.4.5. The
“prompt” correction of defective work by the Contractor after receipt of
notification from the City as described above shall be defined as follows:
(a) The Contractor shall make written response to the City
within twenty-four (24) hours of receipt of the City’s notice acknowledging receipt
of the notice and providing the proposed schedule to conduct corrective work.
Corrective work shall not interfere with the City’s normal operation and use of the
Project, unless expressly approved by the City;
(b) For corrective work which is not a life safety issue or which
will not, by the nature of the defect, cause subsequent damage to the Project,
corrective work shall be completed within fourteen (14) calendar days;
(c) For corrective work which by its nature may cause
subsequent damage to the Project, corrective work required to prevent subsequent
damage shall be completed within twenty-four (24) hours, and if such work is a
temporary repair, permanent repair of the corrective work shall be completed within
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seven (7) calendar days. The Contractor shall also correct all subsequent damage
caused by such corrective work;
(d) For corrective work which affects services to, and ordinary
use of the Project, corrective work shall be completed within twenty-four (24)
hours, and if such work is a temporary repair, permanent repair of the corrective
work shall be completed within seven (7) calendar days; and
(e) The time frames stated above for completion of permanent
corrective work shall be equitably adjusted as required for legitimate delays caused
by weather delays, material acquisition and other factors beyond the Contractor’s
direct control.
1.14.2.2.2 The one-year period for correction of Work shall
be extended with respect to portions of Work first performed after Substantial
Completion by the period of time between Substantial Completion and the actual
performance of the Work.
1.14.2.2.3 These obligations under Subparagraph 1.14.2.2.
shall survive acceptance of the Work under the Contract and termination of the
Contract. The period for any Work corrected pursuant to Paragraph 1.14.2. shall
be extended for a period of one year after the date said corrective work is
completed.
1.14.2.3 The Contractor shall remove from the site portions of the
Work which are not in accordance with the requirements of the Contract Documents and
are neither corrected by the Contractor nor accepted by the City.
1.14.2.4 The Contractor shall bear the cost of correcting destroyed or
damaged construction, whether completed or partially completed, of the City or separate
contractors caused by the Contractor’s correction or removal of Work which is not in
accordance with the requirements of the Contract Documents.
1.14.2.4.1 Where non-conforming Work is found, the entire area
of Work involved shall be corrected unless the Contractor can completely define
the limits to the Architect’s satisfaction. Additional testing, sampling, or
inspecting needed to define nonconforming Work shall be at the Contractor’s
expense, and performed by the City’s testing laboratory if such services are
reasonably required by the Architect. All corrected Work shall be retested at the
Contractor’s expense. Extra architectural or other services required to analyze
non-conforming Work shall be paid for by the Contractor.
1.14.2.5 Nothing contained in Paragraph 1.14.2. shall be construed to
establish a period of limitation with respect to other obligations which the Contractor might
have under the Contract Documents. Nothing contained in Paragraph 1.14.2. is intended to
limit or modify any obligations under the law or under the Contract Documents, including
any warranty obligations, expressed or implied.
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1.14.3 Acceptance Of Nonconforming Work.
1.14.3.1 If the Owner prefers to accept Work which is not in accordance
with the requirements of the Contract Documents, the City may do so instead of requiring
its removal and correction, in which case the Contract Sum will be reduced as appropriate
and equitable. Such adjustment shall be effected whether or not final payment has been
made.
1.15 Miscellaneous Provisions.
1.15.1 Governing Law.
1.15.1.1 This Contract and any disputes related to the Work shall be
governed by the law of the State of Texas, and any disputes shall be resolved in Brazos
County, Texas.
1.15.2 Successors And Assigns.
1.15.2.1 The City and Contractor respectively bind themselves, their
partners, successors, assigns and legal representatives to the other party hereto and to
partners, successors, assigns and legal representatives of such other party in respect to
covenants, agreements and obligations contained in the Contract Documents. Contractor
shall not assign the Contract as a whole, or in part, without written consent of the City. If
either party attempts to make such an assignment without such consent, that party shall
nevertheless remain legally responsible for all obligations under the Contract.
1.15.3 Written Notice.
1.15.3.1 Written notice shall be deemed to have been served only if the
writing is delivered to the addressees set out below, or to such other address as has been
previously clearly identified in writing by the addressee, or if delivered by mail or in form
of electronic transmission to that office, or sent by registered or certified mail to that address.
City: City of College Station
Erica Wozniak, Project Manager
PO Box 9960
1101 Texas Ave
College Station, Texas 77842
Contractor: J.T. Vaughn Construction, LLC
Attn: Judd Blume, Project Manager
2421 Earl Rudder Freeway
College Station, Texas 77845
1.15.4 Rights And Remedies.
1.15.4.1 No action or failure to act by the City, Architect or Contractor
shall constitute a waiver of a right or duty afforded them under the Contract, nor shall such
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action or failure to act constitute approval of or acquiescence in a breach thereunder, except
as may be specifically agreed in writing.
1.15.5 Tests And Inspections.
1.15.5.1 Tests, inspections and approvals of portions of the Work
required by the Contract Documents or by laws, ordinances, rules, regulations or orders of
public authorities having jurisdiction shall be made at appropriate times. Unless otherwise
provided, the Contractor shall make arrangements for such tests, inspections and approvals
with an independent testing laboratory employed by the City for this purpose, or with the
appropriate public authority. City shall bear the normal costs of these services, but not any
excess costs attributable to Contractor-caused scheduling problems, or other Contractor
error. The Contractor shall give the Architect timely notice of when and where tests and
inspections are to be made so the Architect may observe such procedures.
1.15.5.2 If the Architect, City or public authorities having jurisdiction
determine that portions of the Work require additional testing, inspection or approval not
included under Paragraph 1.15.5.1., the Architect will, upon written authorization from the
City, instruct the Contractor to make arrangements for such additional testing, inspection or
approval by an entity acceptable to the City, and the Contractor shall give timely notice to
the Architect of when and where tests and inspections are to be made so that the Architect
may be present for such procedures. Such costs, except as provided in Paragraph 1.15.5.3.,
shall be at the City’s expense.
1.15.5.3 If such procedures for testing, inspection or approval under
Paragraphs 1.15.5.1 and 1.15.5.2. reveal failure of the portions of the Work to comply with
requirements established by the Contract Documents, all costs made necessary by such
failure including those of repeated procedures and compensation for the Architect’s services
and expenses shall be at the Contractor’s expense.
1.15.5.4 Required certificates of testing, inspection or approval shall,
unless otherwise required by the Contract Documents, be secured by the Contractor and
promptly delivered to the Architect.
1.15.5.5 If the Architect is to observe tests, inspections or approvals
required by the Contract Documents, the Architect will do so promptly and, where
practicable, at the normal place of testing.
1.15.5.6 Tests or inspections conducted pursuant to the Contract
Documents shall be made promptly to avoid unreasonable delay in the Work.
1.16 Termination Or Suspension Of The Contract.
1.16.1 Termination By The Contractor.
1.16.1.1 The Contractor may terminate the Contract if the Work is
stopped for a period of ninety (90) consecutive days through no act or fault of the Contractor
or a Subcontractor, Sub-subcontractor or their agents or employees or any other persons or
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entities performing portions of the Work under direct or indirect contract with the
Contractor, for any of the following reasons:
(a) issuance of an order of a court or other public authority
having jurisdiction which requires all Work to be stopped;
(b) an act of government, such as a declaration of national
emergency which requires all Work to be stopped; or
(c) because the Architect has not issued a Certificate for
Payment and has not notified the Contractor of the reason for withholding
certification as provided in Paragraph 1.11.4.1., or because the City has not made
payment on a Certificate for Payment within the time stated in the Contract
Documents, provided notice is given as required under Subparagraph 1.11.4.1.
1.16.1.2 The Contractor may terminate the Contract if, through no act
or fault of the Contractor or a Subcontractor, Sub-subcontractor or their agents or employees
or any other persons or entities performing portions of the Work under direct or indirect
contract with the Contractor, repeated suspensions, delays or interruptions of the entire
Work by the City as described in Paragraph 1.16.3. constitute in the aggregate more than
100 percent of the total number of days scheduled for completion, or 120 days in any 365-
day period, whichever is less.
1.16.1.3 If the Work is stopped for ninety (90) consecutive days for any
reason described in Paragraph 1.16.1.1. or 1.16.1.2., the Contractor may, upon fourteen (14)
days’ written notice to the City and Architect, terminate the Contract and recover from the
City payment for Work.
1.16.1.4 Notwithstanding anything to the contrary contained herein or
in the other Contract Documents, the City shall not be responsible for damages for loss of
anticipated profits on Work not performed on account of any termination described in
Subparagraphs 1.16.1.1., 1.16.1.2., and 1.16.1.3.
1.16.2 Termination By The Owner For Cause.
1.16.2.1 The City may terminate the Contract if the Contractor:
(a) refuses or fails to supply enough properly skilled workers or
proper materials;
(b) fails to make payment to Subcontractors for materials or
labor in accordance with the respective agreements between the Contractor and the
Subcontractors;
(c) disregards laws, ordinances, or rules, regulations or orders
of a public authority having jurisdiction;
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(d) otherwise is guilty of substantial breach of a provision of the
Contract Documents;
(e) fails to furnish the City, upon request, with assurances
satisfactory to the City evidencing the Contractor’s ability to complete the Work in
compliance with all the requirements of the Contract Documents;
(f) fails to proceed continuously and diligently with the
construction and completion of the Work, except as permitted under the Contract
Documents; or
(g) fails to provide all required policies of insurance and/or
bonds.
1.16.2.2 When any of the above reasons exist, the City may without
prejudice to any other rights or remedies of the City and after giving the Contractor and the
Contractor’s surety, if any, seven days’ written notice, terminate employment of the
Contractor and may, subject to any prior rights of the surety:
(a) take possession of the site and of all materials, equipment,
tools, and construction equipment and machinery thereon owned by the Contractor;
(b) accept assignment of subcontracts pursuant to Paragraph
1.7.4.;
(c) Make demand upon Contractor’s surety to complete the
Work; and
(d) finish the Work by whatever reasonable method the City
may deem expedient.
1.16.2.3 When the City terminates the Contract for one of the reasons
stated in Paragraph 1.16.2.1, the Contractor shall not be entitled to receive further payment
until the Work is finished.
1.16.2.4 If the unpaid balance of the Contract Sum exceeds costs of
finishing the Work, including compensation for the Architect’s services and expenses made
necessary thereby, and other damages incurred by the City and not expressly waived,
including attorney’s fees, such excess shall be paid to the Contractor. If such costs and
damages exceed the unpaid balance, the Contractor shall pay the difference to the City. This
obligation for payment shall survive termination of the Contract.
1.16.2.5 If a Performance Bond has been furnished and the Contractor
is declared by the City to be in default under the Contract, the Surety shall promptly, in no
event to exceed 30 days, remedy the default by commencing and continuing to perform the
remaining work of the Contract in accordance with its terms and conditions, or by obtaining
a bid or bids in accordance with its terms and conditions. At City’s election, upon
determination by the City and the Surety of the lowest responsible bidder, the Surety will
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complete the Work or will arrange for a Contract between such bidder and the City, and
make available sufficient funds to pay the cost of completion less the balance of the Contract
Sum, but not exceeding the Penal Sum of the bond. The phrase “balance of the Contract
Sum” as used herein shall mean the total amount payable by the City to the Contractor under
the Contract, including any adjustments thereto made in accordance with the terms and
conditions of this Contract, and amendments thereto less the amount previously paid by the
City to the Contractor.
1.16.3 Suspension By The Owner For Convenience.
1.16.3.1 The City may, without cause, order the Contractor in writing
to suspend, delay or interrupt the Work in whole or in part for such period of time as the
City may determine.
1.16.3.2 If City suspends the Contractor’s performance for
convenience, an adjustment shall be made to the Contract Sum as calculated under
Paragraph 1.9 and shall include profit. No adjustment shall be made to the extent:
(a) that performance is, was or would have been so suspended,
delayed or interrupted by another cause for which the Contractor is responsible; or
(b) that an equitable adjustment is made or denied under another
provision of the Contract.
1.16.4 Termination By The Owner For Convenience.
1.16.4.1 The City may, at any time, terminate the Contract, in whole
or in part, for the City’s convenience and without cause.
1.16.4.2 Upon receipt of written notice from the City of such
termination for the City’s convenience, the Contractor shall:
(a) cease operations as directed by the City in the notice;
(b) take actions necessary, or that the City may direct, for the
protection and preservation of the Work; and
(c) except for Work not so terminated and/or directed to be
performed prior to the effective date of termination stated in the notice, terminate
all existing subcontracts and purchase orders and enter into no further subcontracts
and purchase orders.
1.16.4.3 In the event of a termination under Paragraph 1.16.4, the
Contractor shall be paid the value of its Work to the date of termination plus such sums as
are reasonably required to cover the cost to Contractor, its Subcontractors and suppliers, to
shut down the Project. City shall not be responsible for damages for loss of anticipated
profits on Work not performed on account of any termination.
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1.16.4.4 Upon determination by a court of competent jurisdiction that
termination of the Contract, pursuant to Paragraph 1.16.2 was wrongful, such termination
will be deemed converted to a termination for convenience pursuant to Paragraph 1.16.4,
and Contractor’s remedy for wrongful termination shall be limited to the recovery of the
payments permitted for termination for convenience as set forth in Paragraph 1.16.4.
END OF GENERAL PROVISIONS
2. CONSTRUCTION MANAGER’S RESPONSIBILITIES.
The Construction Manager shall perform the services described in this Paragraph. The
services to be provided under Paragraphs 2.1 and 2.2 constitute the Preconstruction Phase services.
If the City and Construction Manager agree, the Construction Phase may commence before the
Preconstruction Phase is completed, in which case both phases will proceed concurrently.
2.1 Preconstruction Phase.
2.1.1 Preliminary Evaluation. The Construction Manager shall provide a
preliminary evaluation of the City’s program and Project budget requirements, each in terms of
the other.
2.1.2 Consultation. The Construction Manager with the Architect shall jointly
schedule and attend regular meetings with the City. The Construction Manager shall consult with
the City and Architect regarding site use and improvements and the selection of materials,
building systems and equipment. The Construction Manager shall provide recommendations on
construction feasibility; actions designed to minimize adverse effects of labor or material
shortages; time requirements for procurement, installation and construction completion; and
factors related to construction cost, including estimates of alternative designs or materials,
preliminary budgets and possible economies.
2.1.3 Preliminary Project Schedule. When Project requirements described in
Paragraph 3.1.1 have been sufficiently identified, the Construction Manager shall prepare, and
periodically update, a preliminary Project schedule for the Architect’s review and the City’s
approval. The Construction Manager shall coordinate and integrate the preliminary Project
schedule with the services and activities of the City, Architect and Construction Manager. As
design proceeds, the preliminary Project schedule shall be updated to indicate proposed activity
sequences and durations, milestone dates for receipt and approval of pertinent information,
submittal of a Guaranteed Maximum Price proposal, preparation and processing of shop drawings
and samples, delivery of materials or equipment requiring long-lead-time procurement, City’s
occupancy requirements showing portions of the Project having occupancy priority, and proposed
date of Substantial Completion. If preliminary Project schedule updates indicate that previously
approved schedules may not be met, the Construction Manager shall make appropriate
recommendations to the City and Architect.
2.1.4 Phased Construction. The Construction Manager shall make
recommendations to the City and Architect regarding the phased issuance of Drawings and
Specifications to facilitate phased construction of the Work, if such phased construction is
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appropriate for the Project, taking into consideration such factors as economies, time of
performance, availability of labor and materials, and provisions for temporary facilities.
2.1.5 Preliminary Cost Estimates. When the City has sufficiently identified the
Project requirements and the Architect has prepared other basic design criteria, the Construction
Manager shall prepare, for the review of the Architect and approval of the City, a preliminary cost
estimate utilizing area, volume or similar conceptual estimating techniques.
2.1.5.1 When Schematic Design Documents have been prepared by
the Architect and approved by the City, the Construction Manager shall prepare, for the
review of the Architect and approval of the City, a more detailed estimate with supporting
data. During the preparation of the Design Development Documents, the Construction
Manager shall update and refine this estimate at appropriate intervals agreed to by the City,
Architect and Construction Manager.
2.1.5.2 When Design Development Documents have been prepared by
the Architect and approved by the City, the Construction Manager shall prepare a detailed
estimate with supporting data for review by the Architect and approval by the Owner.
During the preparation of the Construction Documents, the Construction Manager shall
update and refine this estimate when the Construction Documents are fifty percent (50%)
complete, ninety percent (90%) complete (unless the Guaranteed Maximum Price has been
established), and at any other appropriate intervals agreed to by the City, Architect and
Construction Manager.
2.1.5.3 If any estimate submitted to the City exceeds previously
approved estimates or the City’s budget, the Construction Manager shall make appropriate
recommendations to the City and Architect.
2.1.6 Subcontractors And Suppliers. The Construction Manager shall seek to
develop subcontractor interest in the Project and shall furnish to the City and Architect for their
information a list of possible subcontractors, including suppliers who are to furnish materials or
equipment fabricated to a special design, from whom proposals will be requested for each
principal portion of the Work. The Architect will promptly reply in writing to the Construction
Manager if the Architect or City know of any objection to such subcontractor or supplier. The
receipt of such list shall not require the City or Architect to investigate the qualifications of
proposed subcontractors or suppliers, nor shall it waive the right of the City or Architect later to
object to or reject any proposed subcontractor or supplier.
2.1.7 Long-Lead-Time Items. The Construction Manager shall recommend to
the City and Architect a schedule for procurement of long-lead-time items which will constitute
part of the Work as required to meet the Project schedule. If such long-lead-time items are
procured by the City, they shall be procured on terms and conditions acceptable to the
Construction Manager. Upon the City’s acceptance of the Construction Manager’s Guaranteed
Maximum Price proposal, all contracts for such items shall be assigned by the City to the
Construction Manager, who shall accept responsibility for such items as if procured by the
Construction Manager. The Construction Manager shall expedite the delivery of long-lead-time
items.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
2.1.8 Extent Of Responsibility. The Construction Manager does not warrant or
guarantee estimates and schedules except as may be included as part of the Guaranteed Maximum
Price. The recommendations and advice of the Construction Manager concerning design
alternatives shall be subject to the review and approval of the City and the City’s professional
consultants. It is not the Construction Manager’s responsibility to ascertain that the Drawings and
Specifications are in accordance with applicable laws, statutes, ordinances, building codes, rules
and regulations. However, if the Construction Manager recognizes that portions of the Drawings
and Specifications are at variance therewith, the Construction Manager shall promptly notify the
Architect and City in writing.
2.1.9 Equal Employment Opportunity And Affirmative Action. The
Construction Manager shall comply with applicable laws, regulations and special requirements
of the Contract Documents regarding equal employment opportunity and affirmative action
programs.
2.2 Guaranteed Maximum Price Proposal And Contract Time.
2.2.1 When the Drawings and Specifications are sufficiently complete, the
Construction Manager shall propose a Guaranteed Maximum Price, which shall be the sum of the
estimated Cost of the Work and the Construction Manager’s Fee. Provided, however,
Construction Manager understands such estimates are relied upon by the City in making various
Project determinations, and, therefore, should Construction Manager’s Guaranteed Maximum
Price proposal exceed the City’s applicable budget by more than 10%, all pre-construction
services rendered thereafter to render the Project within 10% of the budget by Construction
Manager shall be at its cost.
2.2.2 As the Drawings and Specifications may not be finished at the time the
Guaranteed Maximum Price proposal is prepared, the Construction Manager shall provide in the
Guaranteed Maximum Price for further development of the Drawings and Specifications by the
Architect that is consistent with the Contract Documents and reasonably inferable therefrom.
Such further development does not include such things as changes in scope, systems, kinds and
quality of materials, finishes or equipment, all of which, if required, shall be incorporated by
Change Order.
2.2.3 The estimated Cost of the Work shall include the Construction Manager’s
contingency, a sum established by the Construction Manager for the Construction Manager’s
exclusive use to cover costs arising under Paragraph 2.2.2 and other costs which are properly
reimbursable as Cost of the Work but not the basis for a Change Order.
2.2.4 Basis Of Guaranteed Maximum Price. The Construction Manager shall
include with the Guaranteed Maximum Price proposal a written statement of its basis, which shall
include:
(a) A list of the Drawings and Specifications, including all
addenda thereto and the Conditions of the Contract, which were used in preparation
of the Guaranteed Maximum Price proposal.
(b) A list of allowances and a statement of their basis.
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(c) A list of the clarifications and assumptions made by the
Construction Manager in the preparation of the Guaranteed Maximum Price
proposal to supplement the information contained in the Drawings and
Specifications.
(d) The proposed Guaranteed Maximum Price, including a
statement of the estimated cost organized by trade categories, allowances,
contingency, and other items and the Fee that comprise the Guaranteed Maximum
Price.
(e) The Date of Substantial Completion upon which the
proposed Guaranteed Maximum Price is based, and a schedule of the Construction
Documents issuance dates upon which the date of Substantial Completion is based.
2.2.5 The Construction Manager shall meet with the City and Architect to
review the Guaranteed Maximum Price proposal and the written statement of its basis. In the
event that the City or Architect discover any inconsistencies or inaccuracies in the information
presented, they shall promptly notify the Construction Manager, who shall make appropriate
adjustments to the Guaranteed Maximum Price proposal, its basis, or both.
2.2.6 Unless the City accepts the Guaranteed Maximum Price proposal in
writing on or before the date specified in the proposal for such acceptance and so notifies the
Construction Manager, the Guaranteed Maximum Price proposal shall not be effective without
written acceptance by the Construction Manager.
2.2.7 Prior to the City’s acceptance of the Construction Manager’s Guaranteed
Maximum Price proposal and issuance of a Notice to Proceed, the Construction Manager shall
not incur any cost to be reimbursed as part of the Cost of the Work, except as the City may
specifically authorize in writing.
2.2.8 Upon acceptance by the City of the Guaranteed Maximum Price proposal,
the Guaranteed Maximum Price and its basis shall be set forth in Amendment No. 1. The
Guaranteed Maximum Price shall be subject to additions and deductions by a change in the Work
as provided in the Contract Documents, and the Date of Substantial Completion shall be subject
to adjustment as provided in the Contract Documents.
2.2.9 The City shall authorize and cause the Architect to revise the Drawings
and Specifications to the extent necessary to reflect the agreed-upon assumptions and
clarifications contained in Amendment No. 1. Such revised Drawings and Specifications shall be
furnished to the Construction Manager in accordance with schedules agreed to by the City,
Architect and Construction Manager. The Construction Manager shall promptly notify the
Architect and City if such revised Drawings and Specifications are inconsistent with the agreed-
upon assumptions and clarifications.
2.3 Construction Phase.
2.3.1 General.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
2.3.1.1 The Construction Phase shall commence on:
(a) the City’s acceptance of the Construction Manager’s
Guaranteed Maximum Price proposal and issuance of a Notice to Proceed, and
(b) the City’s first authorization to the Construction Manager to:
(i) award a subcontract, or
(ii) undertake construction Work with the Construction
Manager’s own forces, or
(iii) issue a purchase order for materials or equipment
required for the Work.
2.3.2 Administration.
2.3.2.1 Those portions of the Work that the Construction Manager
does not customarily perform with the Construction Manager’s own personnel shall be
performed under subcontracts or by other appropriate agreements with the Construction
Manager. The Construction Manager shall obtain bids in accordance with the applicable
requirements of Chapter 2269 of the Texas Government Code from Subcontractors and from
suppliers of materials or equipment fabricated to a special design for the Work from the list
previously reviewed and, after analyzing such bids, shall deliver such bids to the City and
Architect. The City will then determine, with the advice of the Construction Manager, which
bids will be accepted. The City may designate specific persons or entities from whom the
Construction Manager shall obtain bids; however, if the Guaranteed Maximum Price has
been established, the City may not prohibit the Construction Manager from obtaining bids
from other qualified bidders. The Construction Manager shall not be required to contract
with anyone to whom the Construction Manager has reasonable objection.
2.3.2.2 If the Guaranteed Maximum Price has been established and a
specific bidder among those whose bids are delivered by the Construction Manager to the
City and Architect (1) is recommended to the City by the Construction Manager; (2) is
qualified to perform that portion of the Work; and (3) has submitted a bid which conforms
to the requirements of the Contract Documents without reservations or exceptions, but the
City requires that another bid be accepted, then the Construction Manager may require that
a change in the Work be issued to adjust the Contract Time and the Guaranteed Maximum
Price by the difference between the bid of the person or entity recommended to the City by
the Construction Manager and the amount of the subcontract or other agreement actually
signed with the person or entity designated by the City.
2.3.2.3 Subcontracts and agreements with suppliers furnishing
materials or equipment fabricated to a special design shall conform to the payment
provisions of Paragraphs 7.1.8 and 7.1.9 and shall not be awarded on the basis of cost plus
a fee without the prior consent of the City.
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CMAR- Construction
Form Revised on 11-15-17
2.3.2.4 The Construction Manager shall schedule and conduct
meetings with appropriate Subcontractors at which the City, Architect, Construction
Manager and appropriate Subcontractors can discuss the status of the Work. The
Construction Manager shall prepare and promptly distribute meeting minutes.
2.3.2.5 Promptly after the City’s acceptance of the Guaranteed
Maximum Price proposal, the Construction Manager shall prepare a schedule in accordance
with Paragraph 1.5.11, General Conditions, including the Owner’s occupancy requirements.
2.3.2.6 The Construction Manager shall provide monthly written
reports to the City and Architect on the progress of the entire Work. The Construction
Manager shall maintain a daily log containing a record of weather, Subcontractors working
on the site, number of workers, Work accomplished, problems encountered and other
similar relevant data as the City may reasonably require. The log shall be available to the
City and Architect. The Construction Manager shall promptly inform City in writing of any
circumstance or development that is likely to delay Substantial Completion of the Project
in accordance with the schedule.
2.3.2.7 The Construction Manager shall develop a system of cost
control for the Work, including regular monitoring of actual costs for activities in progress
and estimates for uncompleted tasks and proposed changes. The Construction Manager shall
identify variances between actual and estimated costs and report the variances to the City
and Architect at regular intervals.
2.4 Professional Services. Paragraph 1.5.14.10, General Conditions shall apply to
both the Preconstruction and Construction Phase.
2.5 Hazardous Materials. Paragraph 1.12.3, General Conditions shall apply to both
the Preconstruction and Construction Phases.
3. OWNER’S RESPONSIBILITIES.
3.1 Information And Services.
3.1.1 The Owner shall provide information in a timely manner regarding the
requirements of the Project, including a program which sets forth the City’s objectives, constraints
and criteria, including space requirements and relationships, flexibility and expandability
requirements, special equipment and systems, and site requirements.
3.1.2 The City shall establish and update an overall budget for the Project, based
on consultation with the Construction Manager and Architect, which shall include contingencies
for changes in the Work and other costs which are the responsibility of the City.
3.1.3 Structural And Environmental Tests, Surveys And Reports. In the
Preconstruction Phase, the City shall furnish the following with reasonable promptness and at the
City’s expense. Except to the extent that the Construction Manager knows of any inaccuracy, or
should have reasonably discovered such error or inaccuracy, the Construction Manager shall be
entitled to rely upon the accuracy of any such information, reports, surveys, drawings and tests
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described in Paragraphs 3.1.3.1 through 3.1.3.4 but shall exercise customary precautions relating
to the performance of the Work.
3.1.3.1 Reports, surveys, drawings and tests concerning the conditions
of the site which are required by law.
3.1.3.2 Surveys describing physical characteristics, legal limitations
and utility locations for the site of the Project, and a written legal description of the site.
3.1.3.3 The services of a geotechnical engineer when such services are
requested by the Construction Manager and are reasonably required by the scope of the
Project, as determined by the City or Architect. Such services may include but are not
limited to test borings, test pits, determinations of soil bearing values, percolation tests,
evaluations of hazardous materials, ground corrosion and resistivity tests, including
necessary operations for anticipating subsoil conditions, with reports and appropriate
professional recommendations.
3.1.3.4 Structural, mechanical, chemical, air and water pollution tests,
tests for hazardous materials, and other laboratory and environmental tests, inspections and
reports which are required by law.
3.1.3.5 The services of other consultants when such services are
reasonably required by the scope of the Project, as determined by the City or Architect, and
are requested by the Construction Manager.
3.2 Owner’s Designated Representative. The City shall designate in writing City’s
Representative who shall have express authority, subject to the limitations set forth in the General
Conditions, to bind the City with respect to all matters requiring the City’s approval or
authorization. This City’s Representative shall have the authority to make decisions on behalf of
the City concerning estimates and schedules, construction budgets, and changes in the Work, and
shall render such decisions promptly and furnish information expeditiously, so as to avoid
unreasonable delay in the services or Work of the Construction Manager. Except as otherwise
provided in Paragraph 1.6.2.1, General Conditions, the Architect does not have such authority.
3.3 Architect. The City shall retain an Architect to provide Basic Services, including
normal structural, mechanical and electrical engineering services. The City must authorize, in
writing, and cause the Architect to provide additional service, requested by the Construction
Manager which must necessarily be provided by the Architect for the Preconstruction and
Construction Phases of the Work. Construction Manager has no authority to request services
from the Architect on the City’s behalf. Such services shall be provided in accordance with time
schedules agreed to by the City, Architect and Construction Manager. Upon request of the
Construction Manager, the City shall furnish to the Construction Manager a copy of the City’s
Agreement with the Architect.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
4. COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE
SERVICES.
The City shall compensate and make payments to the Construction Manager for
Preconstruction Phase services as follows:
4.1 Compensation.
4.1.1 For the services described in Paragraphs 2.1 and 2.2, the Construction
Manager’s compensation shall be calculated as follows:
See Contractors Proposal
(State basis of compensation, whether a stipulated sum, multiple of Direct
Personnel Expense, actual cost, etc. Include a statement of reimbursable cost items as
applicable.)
4.1.2 If compensation is based on a multiple of Direct Personnel Expense,
Direct Personnel Expense is defined as the direct salaries of the Construction Manager’s
personnel engaged in the Project and the portion of the cost of their mandatory and customary
contributions and benefits related thereto, such as employment taxes and other statutory employee
benefits, insurance, sick leave, holidays, vacations, pensions and similar contributions and
benefits.
4.2 Payments.
4.2.1 Payments shall be made monthly following presentation of the
Construction Manager’s invoice and, where applicable, shall be in proportion to services
performed.
4.2.2 Payments are due and payable thirty (30) calendar days from the date the
Construction Manager’s invoice is received by the Owner.
4.2.3 The City stipulates that it is an exempt organization as defined by the
Limited Sales, Excise and Use Tax Act and, as such, is exempt from the payment of the sales tax
on materials and supplies used in the performance of this Contract. The Construction Manager
shall issue exemption certificates to its Subcontractors and suppliers in lieu of said sales tax for
all such materials and supplies, complying with all applicable State Comptroller’s Rulings.
5. COMPENSATION FOR CONSTRUCTION PHASE SERVICES.
The City shall compensate the Construction Manager for Construction Phase services as
follows:
5.1 Compensation.
5.1.1 For the Construction Manager’s performance of the Work as described in
Paragraph 2.3, the City shall pay the Construction Manager in current funds the Contract Sum
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Form Revised on 11-15-17
consisting of the Cost of the Work as defined in Paragraph 7 and the Construction Manager’s Fee
determined as follows:
See Contractors Proposal
(State a lump sum, percentage of actual Cost of the Work or other provision
for determining the Construction Manager’s Fee, and explain how the Construction
Manager’s Fee is to be adjusted for changes in the Work.)
5.2 Guaranteed Maximum Price.
5.2.1 The sum of the Cost of the Work and the Construction Manager’s Fee for
the Work are guaranteed by the Construction Manager not to exceed the amount provided in
Amendment No. 1, subject to additions and deductions by changes in the Work as provided in the
Contract Documents. Such maximum sum as adjusted by approved changes in the Work is
referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would
cause the Guaranteed Maximum Price to be exceeded shall be paid by the Construction Manager
without reimbursement by the City. In the event the Cost of Work plus the Construction
Manager’s Fee is less than the Guaranteed Maximum Price (“GMP”), the savings shall accrue
one hundred percent (100%) to City.
(Insert specific provisions if the Construction Manager is to participate in any savings.)
5.3 Changes In The Work.
5.3.1 Adjustments to the Guaranteed Maximum Price on account of changes in
the Work subsequent to the execution of Amendment No. 1 may be determined by any of the
methods listed in Paragraph 1.9.2.2, General Conditions, subject to the limitations provided in the
General Conditions.
5.3.2 In calculating adjustments to subcontracts (except those awarded with the
Owner’s prior consent on the basis of cost plus a fee), the terms “cost” and “fee” as used in
Paragraph 1.9.2.2 (c), General Conditions and the term “costs” as used in Paragraph 1.9.3.6,
General Conditions shall have the meanings assigned to them in the General Conditions and shall
not be modified by this Paragraph 5. Adjustments to subcontracts awarded with the City’s prior
consent on the basis of cost plus a fee shall be calculated in accordance with the terms of those
subcontracts.
5.3.3 In calculating adjustments to the Contract, the terms “cost” and “costs” as
used in the above-referenced provisions of the General Conditions shall mean the Cost of the
Work as defined in Paragraph 6 of this Agreement, and the term “and a reasonable allowance for
overhead and profit” shall mean the Construction Manager’s Fee as defined in Paragraph 5.1.1 of
this Agreement.
5.3.4 If no specific provision is made in Paragraph 5.1.1 for adjustment of the
Construction Manager’s Fee in the case of changes in the Work, or if the extent of such changes
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Form Revised on 11-15-17
is such, in the aggregate, that application of the adjustment provisions of Paragraph 5.1.1 will
cause substantial inequity to the Owner or Construction Manager, the Construction Manager’s
Fee shall be equitably adjusted on the basis of the Fee established for the original Work.
6. COST OF THE WORK FOR CONSTRUCTION PHASE.
6.1 Costs To Be Reimbursed.
6.1.1 The term “Cost of the Work” shall mean costs necessarily incurred by the
Construction Manager in the proper performance of the Work. Such costs shall be at rates not
higher than those customarily paid at the place of the Project except with prior consent of the
City. The Cost of the Work shall include only the items set forth in this Paragraph 6.
6.1.2 Labor Costs.
6.1.2.1 Wage Rates. Pursuant to Section 2258.023(a) of the Texas
Government Code, wage rates paid by the Contractor and any subcontractor on this Project
shall be not less than the general prevailing rate of per diem wages for work of a similar
character in this locality as specified in the schedule of general prevailing rates of per diem
wages attached hereto as Exhibit A.
6.1.2.2 Statutory Penalty. Pursuant to Section 2258.023(b) of the
Texas Government Code, if the Contractor or any subcontractor violates the requirements
of this section the Contractor or subcontractor as the case may be shall pay the City Sixty
Dollars ($60.00) for each worker employed for each calendar day or part of the day that the
worker is paid less than the stipulated wage rates.
6.1.2.3 Wages of construction workers directly employed by the
Construction Manager to perform the construction of the Work at the site or, with the
Owner’s agreement, at off-site workshops.
6.1.2.4 Wages or salaries of the Construction Manager’s supervisory
and administrative personnel when stationed at the site with the Owner’s agreement.
See Contractors Proposal
(If it is intended that the wages or salaries of certain personnel stationed at the
Construction Manager’s principal office or offices other than the site office shall be
included in the Cost of the Work, such personnel shall be identified below.)
6.1.2.5 Wages and salaries of the Construction Manager’s supervisory
or administrative personnel engaged, at factories, workshops or on the road, in expediting
the production or transportation of materials or equipment required for the Work, but only
for that portion of their time required for the Work. Further, the time for performance does
not necessitate overtime work and the City shall not be required to reimburse the “premium
time” portion of any overtime payments by Contractor, unless otherwise approved, in
writing, in advance by the City.
Contract No. 18300367
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Form Revised on 11-15-17
6.1.2.6 Costs paid or incurred by the Construction Manager for taxes,
insurance, contributions, assessments and benefits required by law or collective bargaining
agreements, and, for personnel not covered by such agreements, customary benefits such as
sick leave, medical and health benefits, holidays, vacations and pensions, provided that such
costs are based on wages and salaries included in the Cost of the Work under Paragraphs
6.1.2.1 through 6.1.2.4.
6.1.3 Subcontract Costs. Payments made by the Construction Manager to
Subcontractors in accordance with the requirements of the subcontracts.
6.1.4 Costs Of Materials And Equipment Incorporated In The Completed
Construction.
(a) Costs, including transportation, of materials and equipment
incorporated or to be incorporated in the completed construction.
(b) Costs of materials described in the preceding Paragraph
6.1.4.(a) in excess of those actually installed but required to provide reasonable
allowance for waste and for spoilage. Unused excess materials, if any, shall be
handed over to the City at the completion of the Work or, at the City’s option, shall
be sold by the Construction Manager; amounts realized, if any, from such sales
shall be credited to the City as a deduction from the Cost of the Work.
6.1.5 Costs Of Other Materials And Equipment, Temporary Facilities And
Related Items.
(a) Costs, including transportation, installation, maintenance,
dismantling and removal of materials, supplies, temporary facilities, machinery,
equipment, and hand tools not customarily owned by the construction workers,
which are provided by the Construction Manager at the site and fully consumed in
the performance of the Work; and cost less salvage value on such items if not fully
consumed, whether sold to others or retained by the Construction Manager. Cost
for items previously used by the Construction Manager shall mean fair market
value.
(b) Rental charges for temporary facilities, machinery,
equipment and hand tools not customarily owned by the construction workers,
which are provided by the Construction Manager at the site, whether rented from
the Construction Manager or others, and costs of transportation, installation, minor
repairs and replacements, dismantling and removal thereof. Rates and quantities of
equipment rented shall be subject to the City’s prior approval.
(c) Costs of removal of debris from the site.
(d) Reproduction costs, costs of telegrams, facsimile
transmissions and long-distance telephone calls, postage and express delivery
charges, telephone at the site and reasonable petty cash expenses of the site office.
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(e) That portion of the reasonable travel and subsistence
expenses of the Construction Manager’s personnel incurred while traveling in
discharge of duties connected with the Work.
6.1.6 Miscellaneous Costs.
(a) That portion directly attributable to this Contract of
premiums for insurance and bonds.
(If charges for self-insurance are to be included, specify the basis of reimbursement.)
(b) Fees and assessments for the building permit and for other
permits, licenses and inspections for which the Construction Manager is required
by the Contract Documents to pay.
(c) Fees of testing laboratories for tests required by the Contract
Documents, except those related to nonconforming Work other than that for which
payment is permitted by Paragraph 6.1.8.
(d) Royalties and license fees paid for the use of a particular
design, process or product required by the Contract Documents; the cost of
defending suits or claims for infringement of patent or other intellectual property
rights arising from such requirement by the Contract Documents; payments made
in accordance with legal judgments against the Construction Manager resulting
from such suits or claims and payments of settlements made with the City’s
consent; provided, however, that such costs of legal defenses, judgment and
settlements shall not be included in the calculation of the Construction Manager’s
Fee or the Guaranteed Maximum Price and provided that such royalties, fees and
costs are not excluded by the last sentence of Paragraph 1.5.19.1, General
Conditions or other provisions of the Contract Documents.
(e) Data processing costs related to the Work.
(f) Deposits lost for causes other than the Construction
Manager’s negligence or failure to fulfill a specific responsibility to the City set
forth in this Agreement.
6.1.7 Other Costs. Other costs incurred in the performance of the Work if and
to the extent approved in advance in writing by the City.
6.1.8 The costs described in Paragraphs 6.1.1 through 6.1.7 shall be included in
the Cost of the Work notwithstanding any provision of General Conditions of the Contract which
may require the Construction Manager to pay such costs, unless such costs are excluded by the
provisions of Paragraph 6.2.
6.2 Costs Not To Be Reimbursed.
6.2.1 The Cost of the Work shall not include:
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(a) Salaries and other compensation of the Construction
Manager’s personnel stationed at the Construction Manager’s principal office or
offices other than the site office, except as specifically provided in Paragraphs
6.1.2.1 and 6.1.2.2.
(b) Expenses of the Construction Manager’s principal office and
offices other than the site office, except as specifically provided in Paragraph 6.1.
(c) Overhead and general expenses, except as may be expressly
included in Paragraph 6.1.
(d) The Construction Manager’s capital expenses, including
interest on the Construction Manager’s capital employed for the Work.
(e) Rental costs of machinery and equipment, except as
specifically provided in Paragraph 6.1.5(b).
(f) Costs due to the negligence of the Construction Manager or
to the failure of the Construction Manger to fulfill a specific responsibility to the
City set forth in this Agreement.
(g) Costs incurred in the performance of Preconstruction Phase
Services.
(h) Except as provided in Paragraph 6.1.7, any cost not
specifically and expressly described in Paragraph 6.1.
(i) Costs which would cause the Guaranteed Maximum Price to
be exceeded.
6.3 Discounts, Rebates And Refunds.
6.3.1 Cash discounts obtained on payments made by the Construction Manager
shall accrue to the City if (1) before making the payment, the Construction Manager included
them in an Application for Payment and received payment therefor from the City, or (2) the City
has deposited funds with the Construction Manager with which to make payments; otherwise,
cash discounts shall accrue to the Construction Manager. Trade discounts, rebates, refunds and
amounts received from sales of surplus materials and equipment shall accrue to the City, and the
Construction Manager shall make provisions so that they can be secured.
6.3.2 Amounts which accrue to the City in accordance with the provisions of
Paragraph 6.3.1 shall be credited to the City as a deduction from the Cost of the Work.
6.4 Accounting Records.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
6.4.1 The Construction Manager shall keep full and detailed accounts and
exercise such controls as may be necessary for proper financial management under this Contract;
the accounting and control systems shall be satisfactory to the City. The City and the City’s
accountants shall be afforded access to the Construction Manager’s records, books,
correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers,
memoranda and other data relating to this Project, and the Construction Manager shall preserve
these for a period of three years after final payment, or for such longer period as may be required
by law.
7. CONSTRUCTION PHASE.
7.1 Progress Payments.
7.1.1 Based upon Applications for Payment submitted to the Architect by the
Construction Manager, in a form acceptable to City and the Architect, and Certificates for
Payment issued by the Architect, the City shall make progress payments on account of the
Contract Sum to the Construction Manager as provided below and elsewhere in the Contract
Documents.
7.1.2 The period covered by each Application for Payment shall be one calendar
month ending on the last day of the month.
7.1.3 Provided an Application for Payment is received by the Architect not later
than the 30th day of a month, the City shall make payment to the Construction Manager not later
than the 30th day of the following month. If an Application for Payment is received by the
Architect after the application date fixed above, payment shall be made by the City not later than
thirty (30) days after the Architect receives the Application for Payment.
7.1.4 With each Application for Payment, the Construction Manager shall
submit payrolls, petty cash accounts, receipted invoices or invoices with check vouchers attached
and any other evidence required by the City or Architect to demonstrate that cash disbursements
already made by the Construction Manager on account of the Cost of the Work equal or exceed
(1) progress payments already received by the Construction Manager; less (2) that portion of those
payments attributable to the Construction Manager’s Fee; plus (3) payrolls for the period covered
by the present Application for Payment.
7.1.5 Each Application for Payment shall be based upon the most recent
schedule of values submitted by the Construction Manager in accordance with the Contract
Documents. The schedule of values shall allocate the entire Guaranteed Maximum Price among
the various portions of the Work, except that the Construction Manager’s Fee shall be shown as
a single separate item. The schedule of values shall be prepared in such form and supported by
such data to substantiate its accuracy as the City and Architect may require. This schedule, unless
objected to by the City or Architect, shall be used as a basis for reviewing the Construction
Manager’s Applications for Payment.
7.1.6 Applications for Payment shall show the percentage completion of each
portion of the Work as of the end of the period covered by the Application for Payment. The
percentage completion shall be the lesser of (1) the percentage of that portion of the Work which
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has actually been completed or (2) the percentage obtained by dividing (a) the expense which has
actually been incurred by the Construction Manager on account of that portion of the Work for
which the Construction Manager has made or intends to make actual payment prior to the next
Application for Payment by (b) the share of the Guaranteed Maximum Price allocated to that
portion of the Work in the schedule of values.
7.1.7 Subject to other provisions of the Contract Documents, the amount of each
progress payment shall be computed as follows:
(a) Take that portion of the Guaranteed Maximum Price
properly allocable to completed Work as determined by multiplying the percentage
completion of each portion of the Work by the share of the Guaranteed Maximum
Price allocated to that portion of the Work in the schedule of values. Pending final
determination of cost to the City of changes in the Work, amounts not in dispute
may be included as provided in Paragraph 1.9.3.7, General Conditions, even though
the Guaranteed Maximum Price has not yet been adjusted by Change Order.
(b) Add that portion of the Guaranteed Maximum Price properly
allocable to materials and equipment delivered and suitably stored at the site for
subsequent incorporation in the Work or, if approved in advance by the City,
suitably stored off the site at a location agreed upon in writing.
(c) Add the Construction Manager’s Fee, less retainage of: (i)
ten percent (10%) where the GMP is less than $400,000; or (ii) five percent (5%)
where the GMP is $400,000 or more. The Construction Manager’s Fee shall be
computed upon the Cost of the Work described in the two preceding Paragraphs at
the rate stated in Paragraph 5.1.1 or, if the Construction Manager’s Fee is stated as
a fixed sum in that Paragraph, shall be an amount which bears the same ratio to that
fixed-sum Fee as the Cost of the Work in the two preceding Paragraphs bears to a
reasonable estimate of the probable Cost of the Work upon its completion.
(d) Subtract the aggregate of previous payments made by the
City.
(e) Subtract the shortfall, if any, indicated by the Construction
Manager in the documentation required by Paragraph 7.1.4 to substantiate prior
Applications for Payment, or resulting from errors subsequently discovered by the
City’s accountants in such documentation.
(f) Subtract amounts, if any, for which the Architect has
withheld or nullified a Certificate for Payment as provided in Paragraph 1.11.5,
General Conditions.
7.1.8 Except with the City’s prior approval, payments to Subcontractors shall
be subject to retention of not less than five percent (5%). The City and the Construction Manager
shall agree upon a mutually acceptable procedure for review and approval of payments and
retention for subcontracts.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
7.1.9 Except with the City’s prior approval, the Construction Manager shall not
make advance payments to suppliers for materials or equipment which have not been delivered
and stored at the site.
7.1.10 In taking action on the Construction Manager’s Applications for Payment,
the Architect shall be entitled to rely on the accuracy and completeness of the information
furnished by the Construction Manager and shall not be deemed to represent that the Architect
has made a detailed examination, audit or arithmetic verification of the documentation submitted
in accordance with Paragraph 7.1.4 or other supporting data, that the Architect has made
exhaustive or continuous on-site inspections or that the Architect has made examinations to
ascertain how or for what purposes the Construction Manager has used amounts previously paid
on account of the Contract. Such examinations, audits and verifications, if required by the City,
will be performed by the City’s accountants acting in the sole interest of the City.
7.2 Final Payment.
7.2.1 Final payment shall be made by the City to the Construction Manager
when (1) the Contract has been fully performed by the Construction Manager except for the
Construction Manager’s responsibility to correct punch list items or nonconforming Work, as
provided in Paragraph 1.14.2.2, General Conditions, and to satisfy other requirements, if any,
which necessarily survive final payment; (2) a final Application for Payment and a final
accounting for the Cost of the Work have been submitted by the Construction Manager and
reviewed by the City’s accountants; and (3) a final Certificate for Payment has then been issued
by the Architect; such final payment shall be made by the City not more than 30 days after the
issuance of the Architect’s final Certificate for Payment, or as follows:
7.2.2 The amount of the final payment shall be calculated as follows:
(a) Take the sum of the Cost of the Work substantiated by the
Construction Manager’s final accounting and the Construction Manager’s Fee, but
not more than the Guaranteed Maximum Price.
(b) Subtract amounts, if any, for which the Architect withholds
or the City is entitled to withhold under this Agreement, in whole or in part, a final
Certificate for Payment as provided in Paragraph 1.11.5.1, General Conditions or
other provisions of the Contract Documents.
(c) Subtract the aggregate of previous payments made by the
Owner.
If the aggregate of previous payments made by the City exceeds the amount due the
Construction Manager, the Construction Manager shall reimburse the difference to the
City.
7.2.3 The City’s accountants will review and report in writing on the
Construction Manager’s final accounting within 30 days after delivery of the final accounting to
the Architect by the Construction Manager, together with all backup documentation reasonably
required by the City. Based upon such Cost of the Work as the City’s accountants report to be
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
substantiated by the Construction Manager’s final accounting, and provided the other conditions
of Paragraph 7.2.1 have been met, the Architect will, within seven days after receipt of the written
report of the Owner’s accountants, either issue to the City a final Certificate for Payment with a
copy to the Construction Manager or notify the Construction Manager and Owner in writing of
the Architect’s reasons for withholding a certificate as provided in Paragraph 1.11.5.1, General
Conditions. The time periods stated in this Paragraph 7.2 supersede those stated in Paragraph
1.11.4.1, General Conditions.
7.2.4 If the City’s accountants report the Cost of the Work as substantiated by
the Construction Manager’s final accounting to be less than claimed by the Construction Manager,
the Construction Manager shall be entitled to proceed in accordance with Paragraph 8 without a
further decision of the Architect. Unless agreed to otherwise, a demand for mediation of the
disputed amount shall be made by the Construction Manager within 30 days after the Construction
Manager’s receipt of a copy of the Architect’s final Certificate for Payment. Failure to make such
demand within this 30-day period shall result in the substantiated amount reported by the City’s
accountants becoming binding on the Construction Manager. Pending a final resolution of the
disputed amount, the City shall pay the Construction Manager the amount certified in the
Architect’s final Certificate for Payment.
7.2.5 If, subsequent to final payment and at the City’s request, the Construction
Manager incurs costs described in Paragraph 6.1 and not excluded by Paragraph 6.2 (1) to correct
nonconforming Work or (2) arising from the resolution of disputes, the City shall reimburse the
Construction Manager such costs and the Construction Manager’s Fee, if any, related thereto on
the same basis as if such costs had been incurred prior to final payment, but not in excess of the
Guaranteed Maximum Price. If the Construction Manager has participated in savings, the amount
of such savings shall be recalculated and appropriate credit given to the City in determining the
net amount to be paid by the City to the Construction Manager.
8. MISCELLANEOUS PROVISIONS.
8.1 Dispute Resolution.
8.1.1 During both the Preconstruction and Construction Phases, claims,
disputes or other matters in question between the parties to this Agreement shall be resolved as
provided in Paragraph 1.6.3., General Conditions, except that, during the Preconstruction Phase,
no decision by the Architect shall be a condition precedent to mediation.
8.2 Other Provisions.
8.2.1 Extent Of Contract. This Contract, which includes this Agreement and
the other documents incorporated herein by reference, represents the entire and integrated
agreement between the City and the Construction Manager and supersedes all prior negotiations,
representations or agreements, either written or oral. This Agreement may be amended only by
written instrument signed by both the City and Construction Manager. If anything in any
document incorporated into this Agreement is inconsistent with this Agreement, this Agreement
shall govern.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
8.2.2 Ownership And Use Of Documents. Paragraph 1.3.4, General
Conditions, shall apply to both the Preconstruction and Construction Phases.
8.2.3 Governing Law. The Contract shall be governed by the laws of the State
of Texas. Performance and all matters related thereto shall be in Brazos County, Texas, United
States of America.
8.2.4 Assignment. The City and Construction Manager respectively bind
themselves, their partners, successors, assigns and legal representatives to the other party hereto
and to partners, successors, assigns and legal representatives of such other party in respect to
covenants, agreements and obligations contained in the Contract Documents. Neither party to the
Contract shall assign the Contract as a whole without written consent of the other. If either party
attempts to make such an assignment without such consent, that party shall nevertheless remain
legally responsible for all obligations under the Contract.
9. TERMINATION OR SUSPENSION.
9.1 Termination Prior To Establishing Guaranteed Maximum Price.
9.1.1 Prior to execution by both parties of Amendment No. 1 establishing the
Guaranteed Maximum Price, the City may terminate this Contract at any time without cause, and
the Construction Manager may terminate this Contract for any of the reasons described in
Paragraph 1.16.1.1, General Conditions.
9.1.2 If the City or Construction Manager terminates this Contract pursuant to
Paragraph 9.1 prior to commencement of the Construction Phase, the Construction Manager shall
be equitably compensated for Preconstruction Phase Services performed prior to receipt of notice
of termination; provided, however, that the compensation for such services shall not exceed the
compensation set forth in Paragraph 4.1.1.
9.1.3 If the City or Construction Manager terminates this Contract pursuant to
Paragraph 9.1 after commencement of the Construction Phase, the Construction Manager shall be
paid , in addition to the compensation provided in Paragraph 9.1.2,, an amount calculated as
follows:
(a) Take the Cost of the Work incurred by the Construction
Manager.
(b) Add the Construction Manager’s Fee computed upon the
Cost of the Work to the date of termination at the rate stated in Paragraph 5.1 or, if
the Construction Manager’s Fee is stated as a fixed sum in that Paragraph, an
amount which bears the same ratio to that fixed-sum Fee as the Cost of the Work
at the time of termination bears to a reasonable estimate of the probable Cost of the
Work upon its completion.
(c) Subtract the aggregate of previous payments made by the
City on account of the Construction Phase.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
The City shall also pay the Construction Manager fair compensation, either by purchase or
rental at the election of the City, for any equipment owned by the Construction Manager
which the City elects to retain and which is not otherwise included in the Cost of the Work
under Paragraph 9.1.3.(a). To the extent that the City elects to take legal assignment of
subcontracts and purchase orders (including rental agreements), the Construction Manager
shall, as a condition of receiving the payments referred to in Paragraph 9, execute and
deliver all such papers and take all such steps, including the legal assignment of such
subcontracts and other contractual rights of the Construction Manager, as the City may
require for the purpose of fully vesting in the City the rights and benefits of the
Construction Manager under such subcontracts or purchase orders.
Subcontracts, purchase orders and rental agreements entered into by the Construction
Manager with the City’s written approval prior to the execution of Amendment No. 1 shall
contain provisions permitting assignment to the City as described above. If the City accepts
such assignment, the City shall reimburse the Construction Manager with respect to all
valid and properly payable costs arising under the subcontract, purchase order or rental
agreement except those which would not have been reimbursable as Cost of the Work if
the contract had not been terminated. If the City elects not to accept the assignment of any
subcontract, purchase order or rental agreement which would have constituted a Cost of
the Work had this agreement not been terminated, the Construction Manager shall
terminate such subcontract, purchase order or rental agreement and the City shall pay the
Construction Manager the costs necessarily and reasonably incurred by the Construction
Manager by reason of such termination, but in no event to include any overhead or profit
on work not performed.
9.2 Termination Subsequent To Establishing Guaranteed Maximum Price.
Subsequent to execution by both parties of Amendment No. 1, the Contract may be terminated
as provided in Paragraph 1.16, General Conditions.
9.2.1 In the event of such termination by the Owner, the amount payable to the
Construction Manager pursuant to Paragraph 1.16.1.3, General Conditions shall not exceed the
amount the Construction Manager would have been entitled to receive pursuant to Paragraphs
9.1.2 and 9.1.3 of this Agreement.
9.2.2 In the event of such termination by the Construction Manager, the amount
to be paid to the Construction Manager under Paragraph 1.16.1.3, General Conditions shall not
exceed the amount the Construction Manager would have been entitled to receive under
Paragraphs 9.1.2 and 9.1.3 above. In no event shall Construction Manager nor any supplier or
subcontractor be entitled to any fee or lost profits for work not performed.
9.3 Suspension. The Work may be suspended by the City as provided in Paragraph
1.16, General Conditions; in such case, the Guaranteed Maximum Price, if established, shall be
increased as provided in Paragraph 1.16.3.2, General Conditions, except that the term “cost of
performance of the Contract” in that Paragraph shall be understood to mean the Cost of the Work
and the term “profit” shall be understood to mean the Construction Manager’s Fee as described
in Paragraphs 5.1.1 and 5.3.4 of this Agreement.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
10. OTHER CONDITIONS AND SERVICES.
10.1 Construction Manager represents to the City that it has, and will keep in effect at
all times during the term of this Contract, any licenses, permits, and approvals which are legally
required for the Construction Manager to practice its trade.
10.2 Authority to do business. The Construction Manager represents that it has a
certificate of authority authorizing it to do business in the State of Texas, a registered agent and
registered office during the duration of this Contract.
10.3 Authority to Contract. Each party has the full power and authority to enter into
and perform this Agreement, and the person signing this Agreement on behalf of each party has
been properly authorized and empowered to enter into this Agreement. The persons executing
this Agreement hereby represent that they have authorization to sign on behalf of their respective
corporations.
10.4 Severability. In case any one or more of the provisions contained in this Contract
shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision herein and this Contract shall
be construed as if such invalid, illegal, or unenforceable provision had never been contained
herein.
10.5 Presumption Against Waiver. No waiver by either party hereto of any one or
more defaults by the other party hereto in the performance of this Contract shall be construed as
a waiver of any future defaults whether of a like or different character.
10.6 Owner’s Reserved Rights. The City shall have the rights by its officers,
employees or agents to examine and inspect the Construction Manager’s Work at any time to
verify Construction Manager’s compliance with the terms of this Contract. Any approval by
City or acceptance of Construction Manager’s Work shall not waive any obligation of
Construction Manager to correct defective work.
10.7 Benefit. This Contract shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns where permitted by Contract. Nothing in this
Paragraph shall be construed to waive the conditions elsewhere contained in this Contract
applicable to assignment by the Construction Manager. Nothing contained in this Contract shall
be construed to confer any benefit upon any subcontractor or any other third party.
10.8 Headings, Gender, Number. The headings are used in this Agreement for
convenience and reference purposes only and are not intended to define, limit, or describe the
scope or intent of any provision of this Agreement and shall have no meaning or effect upon its
interpretation. Words of any gender used in this Agreement shall be held and construed to
include any other gender, and words in the singular number shall be held to include the plural,
and vice versa, unless the context requires otherwise.
10.9 Agreement Read. The parties acknowledge that they have had opportunity to
consult with counsel of their choice, have read, understand and intend to be bound by the terms
and conditions of this Agreement.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
10.10 Liquidated Damages. The amount of liquidated damages for the
Construction Manager’s failure to meet the deadlines for Substantial and/or Final Completion
are fixed and agreed on by the Construction Manager because of the impracticability and extreme
difficulty in fixing and ascertaining the actual damages that the City would in such an event
sustain. The amounts to be charged are agreed to be damages the City would sustain and shall
be retained by the City from current periodic estimates for payment or from final payment. As
a result of the difficulty in estimation, calculation and ascertainment of City’s damages due to a
failure of Construction Manager to achieve timely completion of the Work, if the Construction
Manager should neglect, fail, or refuse to either Substantially Complete or Finally Complete the
Work within the time herein specified, or any proper extension thereof granted by the City’s
Representative pursuant to the terms of the Contract Documents, then the Construction Manager
does hereby agree as part of the consideration for the awarding of this Agreement that the Owner
may permanently withhold from the Construction Manager’s total compensation the sum of
Four Thousand Nine Hundred Eighty-Five and 75/100 DOLLARS ($4,985.75) for each and
every calendar day that the Construction Manager shall be in default after the time stipulated for
Substantial Completion not as a penalty, but as liquidated damages for the breach of this
Agreement. It being specifically understood that the assessment of liquidated damages may be
made for any failure to meet either or both of the deadlines specified for Substantial Completion
and/or Final Completion.
10.11 Final Completion. Contractor shall achieve Final Completion within 30
calendar days of the date of Substantial Completion, failing which, Contractor shall provide a
full time on site superintendent until Final Completion at its own cost and not as a cost of the
Work.
10.12 Verification No Boycott Israel. To the extent this Contract is considered
a contract for goods or services subject to § 2270.002 Texas Government Code, Contractor
verifies that it i) does not boycott Israel; and ii) will not boycott Israel during the term of this
Contrtact.
List of Exhibits
A. Wage Rates
B. Insurance Requirements
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
C. Performance & Payment Bonds
D. Certificates of Insurance
E. Specifications & Plans
J.T. Vaughn Construction, LLC
CITY OF COLLEGE STATION
By:_______________________________ By:_______________________________
Printed Name: ______________________ City Manager: ______________________
Title: ____________________________ Date: __________________________
Date: _____________________________
APPROVED:
__________________________________
City Attorney
Date:______________
__________________________________
Assistant City Manager/CFO
Date:______________
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
EXHIBIT A
DAVIS BACON WAGE RATES
General Decision Number: TX180016 01/05/2018 TX16
Superseded General Decision Number: TX20170016
State: Texas
Construction Types: Heavy and Highway
Counties: Atascosa, Bandera, Bastrop, Bell, Bexar, Brazos,
Burleson, Caldwell, Comal, Coryell, Guadalupe, Hays, Kendall,
Lampasas, McLennan, Medina, Robertson, Travis, Williamson and
Wilson Counties in Texas.
HEAVY (excluding tunnels and dams, not to be used for work on
Sewage or Water Treatment Plants or Lift / Pump Stations in
Bell, Coryell, McClennon and Williamson Counties) and HIGHWAY
Construction Projects
Note: Under Executive Order (EO) 13658, an hourly minimum wage
of $10.35 for calendar year 2018 applies to all contracts
subject to the Davis-Bacon Act for which the contract is awarded
(and any solicitation was issued) on or after January 1, 2015.
If this contract is covered by the EO, the contractor must pay
all workers in any classification listed on this wage
determination at least $10.35 per hour (or the applicable
wage rate listed on this wage determination, if it is higher)
for all hours spent performing on the contract in calendar
year 2018. The EO minimum wage rate will be adjusted annually.
Please note that this EO applies to the above-mentioned types
of contracts entered into by the federal government that are
subject to the Davis-Bacon Act itself, but it does not apply
to contracts subject only to the Davis-Bacon Related Acts,
including those set forth at 29 CFR 5.1(a)(2)-(60). Additional
information on contractor requirements and worker protections
under the EO is available at www.dol.gov/whd/govcontracts.
Modification Number Publication Date
0 01/05/2018
* SUTX2011-006 08/03/2011
Rates Fringes
CEMENT MASON/CONCRETE
FINISHER (Paving and
Structures)......................$ 12.56
ELECTRICIAN......................$ 26.35
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
FORM BUILDER/FORM SETTER
Paving & Curb...............$ 12.94
Structures..................$ 12.87
LABORER
Asphalt Raker...............$ 12.12
Flagger.....................$ 9.45
Laborer, Common.............$ 10.50
Laborer, Utility............$ 12.27
Pipelayer...................$ 12.79
Work Zone Barricade
Servicer....................$ 11.85
PAINTER (Structures).............$ 18.34
POWER EQUIPMENT OPERATOR:
Agricultural Tractor........$ 12.69
Asphalt Distributor.........$ 15.55
Asphalt Paving Machine......$ 14.36
Boom Truck..................$ 18.36
Broom or Sweeper............$ 11.04
Concrete Pavement
Finishing Machine...........$ 15.48
Crane, Hydraulic 80 tons
or less.....................$ 18.36
Crane, Lattice Boom 80
tons or less................$ 15.87
Crane, Lattice Boom over
80 tons.....................$ 19.38
Crawler Tractor.............$ 15.67
Directional Drilling
Locator.....................$ 11.67
Directional Drilling
Operator....................$ 17.24
Excavator 50,000 lbs or
Less........................$ 12.88
Excavator over 50,000 lbs...$ 17.71
Foundation Drill, Truck
Mounted.....................$ 16.93
Front End Loader, 3 CY or
Less........................$ 13.04
Front End Loader, Over 3 CY.$ 13.21
Loader/Backhoe..............$ 14.12
Mechanic....................$ 17.10
Milling Machine.............$ 14.18
Motor Grader, Fine Grade....$ 18.51
Motor Grader, Rough.........$ 14.63
Pavement Marking Machine....$ 19.17
Reclaimer/Pulverizer........$ 12.88
Roller, Asphalt.............$ 12.78
Roller, Other...............$ 10.50
Scraper.....................$ 12.27
Spreader Box................$ 14.04
Trenching Machine, Heavy....$ 18.48
Servicer.........................$ 14.51
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Steel Worker
Reinforcing.................$ 14.00
Structural..................$ 19.29
TRAFFIC SIGNAL INSTALLER
Traffic Signal/Light Pole
Worker......................$ 16.00
TRUCK DRIVER
Lowboy-Float................$ 15.66
Off Road Hauler.............$ 11.88
Single Axle.................$ 11.79
Single or Tandem Axle Dump
Truck.......................$ 11.68
Tandem Axle Tractor w/Semi
Trailer.....................$ 12.81
WELDER...........................$ 15.97
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WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
1. Payment greater than prevailing wage rate as listed within this document not prohibited per
Texas Government Code, Chapter 2258, Prevailing Wage Rates, Subchapter A. General Provisions.
2. Not less than the following hourly rates shall be paid for the various classifications of work
required by this project. Workers in classifications where rates are not identified shall be paid not
less than the general prevailing rate of "laborer" for the various classifications of work therein listed.
3. The hourly rate for legal holiday and overtime work shall not be less than one and one-half
(1 & 1/2) times the base hourly rate.
4. The rates listed are journeyman rates. Helpers may be used on the project and may be
compensated at a rate determined mutually by the worker and employer, commensurate with the
experience and skill of the worker but not at a rate less than 60% of the journeyman's wage as
shown. Apprentices (enrolled in a federally certified apprentice program) may be used at the
percentage rates of the journeyman scale stipulated in their apprenticeship agreement. At no time
shall a journeyman supervise more than two (2) apprentices or helpers. All apprentices or helpers
shall be under the direct supervision of a journeyman working as a crew.
5. Except for Heavy/Highway Construction, building construction wage rates shall be paid to
all workers except those workers engaged in site work and construction beyond five feet of
buildings.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
EXHIBIT B
INSURANCE REQUIREMENTS
During the term of this Agreement Contractor’s insurance policies shall meet the following requirements:
I. Standard Insurance Policies Required:
A. Commercial General Liability
B. Business Automobile Liability
C. Umbrella / Excess Liability
D. Workers’ Compensation
E. Builder’s Risk – provides coverage for contractor’s labor and materials for a project during construction that involves a structure such as a building or garage. builder’s risk policy shall be written on “all risks” form.
II. General Requirements Applicable to All Policies:
A. Only Insurance Carriers licensed and admitted to do business in the State of Texas will be accepted.
B. Deductibles shall be listed on the Certificate of Insurance and are acceptable only on a per occurrence basis for property damage only.
C. “Claims Made” policies are not accepted.
D. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City of College Station.
E Upon request, certified copies of all insurance policies shall be furnished to the City of College Station.
F. The City of College Station, its officials, employees and volunteers, are to be named as “Additional Insured” to the Commercial General, Umbrella and Business Automobile Liability policies. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officials, employees or volunteers.
III. Commercial General Liability
A. General Liability insurance shall be written by a carrier with a “A:VIII” or better rating in accordance with the current Best Key Rating Guide.
B. Limit of $1,000,000.00 per occurrence for bodily injury and property damage with an annual aggregate limit of $2,000,000.00 which limits shall be endorsed to be per Project.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
C. Coverage shall be at least as broad as ISO form GC 00 01.
D. No coverage shall be excluded from the standard policy without notification of individual exclusions being attached for review and acceptance.
E. The coverage shall include but not be limited to the following: premises/operations with separate aggregate; independent contracts; products/completed operations; contractual liability (insuring the indemnity provided herein) Host Liquor Liability, Personal & Advertising Liability; and Explosion, Collapse, and Underground coverage.
IV. Business Automobile Liability
A. Business Automobile Liability insurance shall be written by a carrier with a “A:VIII” or better rating in accordance with the current Best Key Rating Guide.
B. Minimum Combined Single Limit of $1,000,000.00 per occurrence for bodily injury and property damage.
C. Coverage shall be at least as broad as Insurance Service’s Office Number CA 00 01.
D. The Business Auto Policy must show Symbol 1 in the Covered Autos Portion of the liability section in Item 2 of the declarations page.
E. The coverage shall include owned autos, leased or rented autos, non-owned autos, any autos and hired autos.
F. Pollution Liability coverage shall be provided by endorsement MCS-90, with a limit of $1,000,000.00.
V. Excess Liability
Umbrella form excess liability coverage following the form of the underlying coverage
with a minimum limit of $5,000,000.00 or the total value of the contract, whichever is
greater, per occurrence/aggregate when combined with the lowest primary liability
coverage.
VI. Those policies set forth in Paragraphs III, IV, and V shall contain an endorsement naming the City as Additional Insured and further providing that the Contractor’s policies are primary to any self-insurance or insurance policies procured by the City. The additional insured endorsement shall be in a form at least as broad as ISO form GC 2026. Waiver of subrogation in a form at least as broad as ISO form 2404 shall be provided in favor of the City on all policies obtained by the Contractor in compliance with the terms of this Agreement. Contractor shall be responsible for all deductibles which may exist on any policies obtained in compliance with the terms of this Agreement. All coverage for subcontractors shall be subject to the requirements stated herein. All Certificates of Insurance and endorsements shall be furnished to the City’s Representative at the time of execution of this Agreement, attached hereto as Exhibit D, and approved by the City before work commences.
VII. Workers Compensation Insurance
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
A. Pursuant to the requirements set forth in Title 28, Section 110.110 of the Texas Administrative Code, all employees of the Contractor, all employees of any and all subcontractors, and all other persons providing services on the Project must be covered by a workers compensation insurance policy: either directly through their employer’s policy (the Contractor’s or subcontractor’s policy) or through an executed coverage agreement on an approved Texas Department of Insurance Division of Workers Compensation (DWC) form. Accordingly, if a subcontractor does not have his or her own policy and a coverage agreement is used, contractors and subcontractors must use that portion of the form whereby the hiring contractor agrees to provide coverage to the employees of the subcontractor. The portion of the form that would otherwise allow them not to provide coverage for the employees of an independent contractor may not be used.
B. Workers compensation insurance shall include the following terms:
1. Employer’s Liability minimum limits of $1,000,000.00 for each accident/each disease/each employee are required.
2. “Texas Waiver of Our Right to Recover From Others Endorsement, WC 42 03 04” shall be included in this policy.
3. Texas must appear in Item 3A of the Workers Compensation coverage or Item 3C must contain the following: All States except those listed in Item 3A and the States of NV, ND, OH, WA, WV, and WY.
C. Pursuant to the explicit terms of Title 28, Section 110.110(c) (7) of the Texas Administrative Code, the bid specifications, this Agreement, and all subcontracts on this Project must include the following terms and conditions in the following language, without any additional words or changes, except those required to accommodate the specific document in which they are contained or to impose stricter standards of documentation:
“A. Definitions:
Certificate of coverage (“certificate”) – An original certificate of insurance, a
certificate of authority to self-insure issued by the Division of Workers
Compensation, or a coverage agreement (DWC-81, DWC-83, or DWC-84),
showing statutory workers’ compensation insurance coverage for the person’s or
entity’s employees providing services on a project, for the duration of the project.
Duration of the project - includes the time from the beginning of the work on the
project until the Contractor’s/person’s work on the project has been completed and
accepted by the governmental entity.
Persons providing services on the project (“subcontractors” in § 406.096 [of the
Texas Labor Code]) - includes all persons or entities performing all or part of the
services the Contractor has undertaken to perform on the project, regardless of
whether that person contracted directly with the Contractor and regardless of
whether that person has employees. This includes, without limitation, independent
Contractors, subcontractors, leasing companies, motor carriers, owner-operators,
employees of any such entity, or employees of any entity which furnishes persons
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
to provide services on the project. “Services” include, without limitation,
providing, hauling, or delivering equipment or materials, or providing labor,
transportation, or other service related to a project. “Services” does not include
activities unrelated to the project, such as food/beverage vendors, office supply
deliveries, and delivery of portable toilets.
B. The Contractor shall provide coverage, based on proper reporting of
classification codes and payroll amounts and filing of any coverage
agreements, that meets the statutory requirements of Texas Labor Code,
Section 401.011(44) for all employees of the Contractor providing services
on the project, for the duration of the project.
C. The Contractor must provide a certificate of coverage to the governmental
entity prior to being awarded the contract.
D. If the coverage period shown on the Contractor’s current certificate of
coverage ends during the duration of the project, the Contractor must, prior
to the end of the coverage period, file a new certificate of coverage with the
governmental entity showing that coverage has been extended.
E. The Contractor shall obtain from each person providing services on a
project, and provide to the governmental entity:
(1) a certificate of coverage, prior to that person beginning work on the project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and
(2) no later than seven calendar days after receipt by the Contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project.
F. The Contractor shall retain all required certificates of coverage for the
duration of the project and for one year thereafter.
G. The Contractor shall notify the governmental entity in writing by certified
mail or personal delivery, within 10 calendar days after the Contractor
knew or should have known, or any change that materially affects the
provision of coverage of any person providing services on the project.
H. The Contractor shall post on each project site a notice, in the text, form and
manner prescribed by the Division of Workers Compensation, informing all
persons providing services on the project that they are required to be
covered, and stating how a person may verify coverage and report lack of
coverage.
I. The Contractor shall contractually require each person with whom it
contracts to provide services on a project, to:
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
(1) provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, that meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all of its employees providing services on the project, for the duration of the project;
(2) provide to the Contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project;
(3) provide the Contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project;
(4) obtain from each other person with whom it contracts, and provide to the Contractor:
(a) A certificate of coverage, prior to the other person beginning
work on the project; and
(b) A new certificate of coverage showing extension of
coverage, prior to the end of the coverage period, if the
coverage period shown on the current certificate of coverage
ends during the duration of the project;
(5) retain all required certificates of coverage on file for the duration of the project and for one year thereafter;
(6) notify the governmental entity in writing by certified mail or personal delivery, within 10 calendar days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and
(7) Contractually require each person with whom it contracts to perform as required by paragraphs (a) - (g), with the certificates of coverage to be provided to the person for whom they are providing services.
J. By signing this contract, or providing, or causing to be provided a
certificate of coverage, the Contractor is representing to the governmental
entity that all employees of the Contractor who will provide services on the
project will be covered by workers’ compensation coverage for the duration
of the project; that the coverage will be based on proper reporting of
classification codes and payroll amounts; and that all coverage agreements
will be filed with the appropriate insurance carrier or, in the case of a self-
insured, with the Commission’s Division of Self-Insurance Regulation.
Providing false or misleading information may subject the Contractor to
administrative penalties, criminal penalties, civil penalties, or other civil
actions.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
K. The Contractor’s failure to comply with any of these provisions is a breach
of contract by the Contractor that entitles the governmental entity to declare
the contract void if the Contractor does not remedy the breach within ten
calendar days after receipt of notice of breach from the governmental
entity.”
VIII. Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent, and shall contain the following provisions and warranties:
A. The company is licensed and admitted to do business in the State of Texas.
B. The insurance policies provided by the insurance company are underwritten
on forms that have been provided by the Texas State Board of Insurance or
ISO.
C. All endorsements and insurance coverages according to requirements and
instructions contained herein.
D. The form of the notice of cancellation, termination, or change in coverage
provisions to the City of College Station.
E. Original endorsements affecting coverage required by this section shall be
furnished with the certificates of insurance.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Exhibit C
PERFORMANCE AND PAYMENT BONDS
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Project No. ______________________
PERFORMANCE BOND
PERFORMANCE BOND
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
THE COUNTY OF BRAZOS §
THAT WE, ____________________________________, as Principal, hereinafter called
“Contractor” and the other subscriber hereto _____________________________________, as
Surety, do hereby acknowledge ourselves to be held and firmly bound to the City of College
Station, a municipal corporation, in the sum of Twenty-Five Million and NO/100 ($25,000,000.00)
for the payment of which sum, well and truly to be made to the City of College Station and its
successors, the said Contractor and Surety do bind themselves, their heirs, executors,
administrators, successors, and assigns, jointly and severally.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT:
WHEREAS, the Contractor has on or about this day executed a Contract in writing with
the City of College Station for Construction Manager at Risk Services for the Construction of the
College Station Police Department Headquarters, all of such work to be done as set out in full in
said Contract Documents therein referred to and adopted by the City Council, all of which are
made a part of this instrument as fully and completely as if set out in full herein.
NOW THEREFORE, if the said Contractor shall faithfully and strictly perform Contract
in all its terms, provisions, and stipulations in accordance with its true meaning and effect, and in
accordance with the Contract Documents referred to therein and shall comply strictly with each
and every provision of the Contract, including all warranties and indemnities therein and with this
bond, then this obligation shall become null and void and shall have no further force and effect;
otherwise the same is to remain in full force and effect.
It is further understood and agreed that the Surety does hereby relieve the City of College
Station or its representatives from the exercise of any diligence whatever in securing compliance
on the part of the Contractor with the terms of the Contract, including the making of payments
thereunder and, having fully considered its Principal’s competence to perform the Contract in the
underwriting of this Performance Bond, the Surety hereby waives any notice to it of any default,
or delay by the Contractor in the performance of his Contract and agrees that it, the Surety, shall
be bound to take notice of and shall be held to have knowledge of all acts or omissions of the
Contractor in all matters pertaining to the Contract. The Surety understands and agrees that the
provision in the Contract that the City of College Station shall retain certain amounts due the
Contractor until the expiration of thirty days from the acceptance of the Work is intended for the
City’s benefit, and the City of College Station shall have the right to pay or withhold such retained
amounts or any other amount owing under the Contract without changing or affecting the liability
of the Surety hereon in any degree.
It is further expressly agreed by Surety that the City of College Station or its representatives
are at liberty at any time, without notice to the Surety, to make any change in the Contract
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Documents and in the Work to be done thereunder, as provided in the Contract, and in the terms
and conditions thereof, or to make any change in, addition to, or deduction from the work to be
done thereunder; and that such changes, if made, shall not in any way vitiate the obligation in this
bond and undertaking or release the Surety therefrom.
It is further expressly agreed and understood that the Contractor and Surety will fully
indemnify and hold harmless the City of College Station from any liability, loss, cost, expense, or
damage arising out of or in connection with the work done by the Contractor under the Contract.
In the event that the City of College Station shall bring any suit or other proceeding at law on the
Contract or this bond or both, the Contractor and Surety agree to pay to the City the actual amounts
of attorneys’ fees incurred by the city in connection with such suit.
This bond and all obligations created hereunder shall be performable in Brazos County,
Texas. This bond is given in compliance with the provisions of Chapter 2253 of the Texas
Government Code, as amended, which is incorporated herein by this reference. However, all of
the express provisions hereof shall be applicable whether or not within the scope of said statute.
Notices required or permitted hereunder shall be in writing and shall be deemed delivered
when actually received or, if earlier, on the third day following deposit in a United State Postal
Service post office or receptacle, with proper postage affixed (certified mail, return receipt
requested), addressed to the respective other party at the address prescribed in the Contract
Documents, or at such other address as the receiving party may hereafter prescribe by written
notice to the sending party.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
IN WITNESS THEREOF, the said Contractor and Surety have signed and sealed this
instrument on the respective dates written below their signatures and have attached current
Power of Attorney.
ATTEST, SEAL: (if a corporation) ___________________________________
WITNESS: (if not a corporation) (Name of Contractor)
By: ___________________________________ By: ________________________________
Name: _________________________ Name: ________________________
Title: ___________________________ Title: _________________________
Date:___________________________ Date: _________________________
ATTEST, WITNESS (SEAL) ___________________________________
(Full Name of Surety)
By: ___________________________________ ____________________________________
______________________________________
Name: _________________________ (Address of Surety for Notice)
Title: ___________________________ ____________________________________
Date: __________________________
By: _________________________________
Name: ________________________
: Title: _________________________
Date: _________________________
REVIEWED: THE FOREGOING BOND IS ACCEPTED
ON BEHALF OF
THE CITY OF COLLEGE STATION,
TEXAS:
____________________________________ ____________________________________
City Attorney’s Office City Manager
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Project No. ______________________
PAYMENT BOND
TEXAS STATUTORY PAYMENT BOND
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
THE COUNTY OF BRAZOS §
THAT WE, ____________________________________, as Principal, hereinafter called
“Principal” and the other subscriber hereto _____________________________________, a
corporation organized and existing under the laws of the State of ______________, licensed to
business in the State of Texas and admitted to write bonds, as Surety, herein after called “Surety”,
do hereby acknowledge ourselves to be held and firmly bound to the City of College Station, a
municipal corporation, in the sum of Twenty-Five Million and NO/100 ($25,000,000.00) for
payment whereof, the said Principal and Surety bind themselves, and their heirs, administrators,
executors, successors and assigns jointly and severally.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT:
WHEREAS, Principal ahs entered into a certain contract with City of College Station
dated the ____ day of _____________, 20____, for Construction Manager at Risk Services for the
Construction of the College Station Police Department Headquarters, which contract is hereby
referred to and made aparty hereof as fully and to the same extent as if copied at length herein.
NOW THEREFORE, the condition of this obligation is such that if Principal shall pay all
claimants supplying labor and material to him or a subcontractor in the prosecution of the work
provided for in said contract, then, this obligation shall be null and void; otherwise to remain in
full force and effect;
PROVIDED, HOWEVER, that this bond is executed pursuant to the provisions of
Chapter 2253 of the Texas Government Code and all liabilities on this bond shall be determined
in accordance with the provisions, conditions and limitations of said Code to the same extent as if
it were copied at length herein.
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
IN WITNESS THEREOF, the said Principal and Surety have signed and sealed this
instrument on the respective dates written below their signatures.
ATTEST, SEAL: (if a corporation) ___________________________________
WITNESS: (if not a corporation) (Name of Contractor)
By: ___________________________________ By: ________________________________
Name: _________________________ Name: ________________________
Title: ___________________________ Title: _________________________
Date:___________________________ Date: _________________________
ATTEST, WITNESS (SEAL) ___________________________________
(Full Name of Surety)
By: ___________________________________
Name: _________________________ (Address of Surety for Notice)
Title: ___________________________ ____________________________________
Date: __________________________
By: _________________________________
Name: ________________________
: Title: _________________________
Date: _________________________
REVIEWED: THE FOREGOING BOND IS ACCEPTED
ON BEHALF OF
THE CITY OF COLLEGE STATION,
TEXAS:
____________________________________ ____________________________________
City Attorney’s Office City Manager
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Exhibit D
CERTIFICATES OF INSURANCE AND ENDORSEMENTS
Contract No. 18300367
CMAR- Construction
Form Revised on 11-15-17
Exhibit E
TECHNICAL SPECIFICATIONS AND PLANS
City Hall
1101 Texas Ave
College Station, TX 77840
College Station, TX
Legislation Details (With Text)
File #: Version:118-0281 Name:RVP Appointment
Status:Type:Appointment Agenda Ready
File created:In control:4/16/2018 City Council Regular
On agenda:Final action:4/26/2018
Title:Presentation, possible action, and discussion regarding an appointment to the Research Valley
Partnership (RVP).
Sponsors:Tanya Smith
Indexes:
Code sections:
Attachments:
Action ByDate Action ResultVer.
Presentation, possible action, and discussion regarding an appointment to the Research Valley
Partnership (RVP).
Relationship to Strategic Goals:
·Good Governance
Recommendation(s): None
Summary: Jim Jett currently serves as College Station’s appointee on the RVP Board. Mr. Jett term
expires June 2018, but he would like to step down earlier. The new appointee would fill Mr. Jett’s
unexpired term and would be eligible to be reappointed for two additional three-year terms.
Budget & Financial Summary: None
Attachments: None
College Station, TX Printed on 4/20/2018Page 1 of 1
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