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HomeMy WebLinkAbout2005-11-15-6:00PM-REGULARBRAZOS COUNTY BRYAN. TEXAS NOTICE OF MEETING AND AGENDA ?~~S I UV I 1 P 3: 40 i ~;U} CLEf;'i . ~t BRAZOS COUNTY COMMISSIONERS COURT THE COMMISSIONERS COURT OF BRAZOS COUNTY WILL MEET IN REGULAR SESSION ON 15 NOVEMBER 2005 AT 6:00 P.M. IN ROOM 102 OF THE BRAZOS CENTER, 3232 BRIARCREST DRIVE, BRYAN, TEXAS. 1. Invocation and Pledge of Allegiance- Commissioners Wassermann 2. Call for citizen's input and/or concerns. Consider and take action on agenda items 3 -18: 3. Budget Amendment 04/05-7.1 thru 04/05-7.3. 4. Personnel Change of Status. 5. Payment of Claims. 6. Proposed Brazos Center clean-up pay rate for part-time temporary staff (previously tabled. 7. Presentation of the proposed Tax Increment Reinvestment Zone No. 19, and discussion and consideration of waiving the required 60 day's notice of the public hearing to be held on 22 November 2005 by the City of Bryan regarding the proposed TIRZ No. 19 as allowed under Tax Code Section 311.003(e). 8. Proposed agreement between Brazos County and Readfield Meats, Inc. for Development and Tax Abatement in Reinvestment Zone Number 18. 9. Permission for the presiding judges of the administrative judicial regions in Texas to designate Brazos County as host county for the East Texas Cluster Court, effective January 1, 2006. Office of the County Judge . 300 East 26'" St. . Suite 114 • Bryan. Texas 77803 . Fax: (979) 361-0503 110 L.14' PAGE) (0 1 Commissioners Court Agenda 15 November 2005 Page 2 10. Adoption of a Family Protection Fee of $30.00 to be collected by the Brazos County District Clerk in each suit filed for dissolution of a marriage under Chapter 6 of the Family Code except where statutory requirements for an exemption exist, effective January 1, 2006. 11. Order #05-010 providing for extension of the 900 Hour Rule for enrollment in the Texas County & District Retirement System. 12. Professional Services Agreement with Aporia Solutions for the review and updating of Brazos County's Information Technology and Security policies and procedures and other related material. 13. Tax Refund Applications for the following: a. John E. & Ethel M. Bunton b. Marilyn Jeske c. Rowena Johnson d. Travis Smith & Lisa Camarillo William Steven Steele, Trustee 14. Request from Archie Clark, Precinct 1 Constable, for permission to appoint Phillip Luster as a full-time non-paid Deputy. 15. Request from Donald Lampo, Precinct 2 Constable, for permission to appoint James Ward Carter as a non-paid Deputy. 16. Contract between Brazos County and Hunt Construction Group, Inc. for construction manager services. 17. Capital purchase of a water truck for the Road & Bridge Department (requisitions #00006793 and 00006796). 18. Payment authorization in the amount of $3,381.79 for attorney's fees associated with a lawsuit filed against the Brazos County Bail Bond Board. 19. Acknowledgement of the Investment Report for the quarter ending 9/30/2005. 20. Announcement of interest items and possible firture agenda topics. 21. Call for citizen input and/or concerns. 22. Agency / Board / Committee reports by Court members. 23. Adjourn The Brazos County Courthouse is wheelchair accessible. Handicap parking spaces are available. Any request for sign interpretive services must be made two business days before the meeting. To make arrangements, call (979) 361-4102. V i COMMISSIONERS' COURT REGULAR MEETING NOVEMBER 15, 2005 A regular meeting of the Commissioners' Court of Brazos County, Texas was held in the Brazos Center 3232 Briarcrest Drive, in Bryan, Brazos County, Texas, beginning at 6:00 p.m. on Tuesday, November 15, 2005 with the following members of the Court present: Randy Sims, County Judge, Presiding; Lloyd Wassermann, Commissioner of Precinct 1; Duane Peters, Commissioner of Precinct 2; Kenny Mallard, Commissioner of Precinct 3; Carey Cauley, Jr., Commissioner of Precinct 4; Karen McQueen, County Clerk. The attached sheet contains the names of the citizens and officials that were in attendance. Commissioner Wassermann gave the invocation and led the pledge of allegiance. Under citizen input/and or concerns, the following spoke: Judge J. D. Langley, 85th District Court Wanted to bring to the Court's attention a meeting at noon, on Tuesday, November 22, 2005 with the District Clerk and Community Supervision to discuss fines and court costs. He said there was room for improvement and this must be promptly submitted to the Office of Court Administration. He asked for ideas about the direction the Court wants to take in this matter. The County Judge said the challenge is the Justices of the Peace do not want to turn loose of collection. Judge Langley said he has discussed this with Justice of the Peace, Precinct 3, George VOL 74 PAGE /0 Commissioners Court meeting November 15, 2005 2 Boyett and Judge Boyett thinks it would be best to have an outside source do this. The County Judge stated that the District Clerk has volunteered to take it on. More discussion is needed if the District Clerk does indeed assume this responsibility, it will take additional employees versus farming it out. The Court next considered Budget Amendment #05/06-7.1 through 7.3, which would reallocate funds for Commissioners Court, County Attorney and increase the budget for Emergency Management. On motion by Commissioner Cauley, seconded by Commissioner Peters, the Court voted unanimously to approve the budget amendment as submitted, a copy of which is attached. The Court proceeded to consider the change of status of employees as submitted on the attached Personnel Action Requests. On motion by Commissioner Peters, seconded by Commissioner Wassermann, the Court voted unanimously to approve the change of status as submitted. The Court next considered the following Claims as submitted by the County Treasurer for payment: 7012818 through 7012833 and 7013079 through 7013336 On motion by Commissioner Peters, seconded by Commissioner Cauley, the Court voted unanimously to approve the Claims as submitted. Vol q q Page 16 Commissioners Court meeting November 15, 2005 3 The next matter before the Court was the proposed Brazos Center clean-up pat rate for part-time temporary staff. On motion by Commissioner Peters, seconded by Commissioner Cauley, the Court voted unanimously to remove this item from the agenda. The Court next heard a presentation by Chris Peterson, Attorney for Burton Creek Development, Ltd., on the proposed Tax Reinvestment Increment Zone #19, and a request to waive the required 60 days notice of public hearing. Mr. Peterson gave an overview of the project and stated that the statute allows for waiving the requirement for the 60 days notice of public hearing also stating that it has been done before. Speaking with Mr. Peterson was Paul Leventis, PE., Bleyl Engineering and David Story, City of Bryan Economic Development. On motion by Commissioner Mallard, seconded by Commissioner Peters, the Court voted unanimously to waive the required 60 days notice of public hearing. The Court next considered a Tax Abatement Agreement between Brazos County and Ruffino Meats & Food Service. Bob Malaise of the Research Valley Partnership explained that the City Council of the City of Bryan established Reinvestment Zone Number Eighteen (18) as authorized by Chapter 312, Texas Tax Code. The exemption shall exempt the value of the land, Vol '14 Page 106 Commissioners Court meeting November 15, 2005 q buildings and the other permanent improvements. Under the conditions of the abatement the following rates shall be in effect for the following years: Year % of Abatement 2006 700 2007 50% 2008 30% 2009 20% 2010 10% On motion by the County Judge, seconded by Commissioner Cauley, the Court voted unanimously to grant the tax abatement to Ruffino Meats and Food Service. A copy is attached. The next matter before the Court was accepting the designation of Brazos County as the host county for the East Texas Cluster Court by the Presiding Judges of the Administrative Judicial Regions in Texas. The current host county is Montgomery County. With the resignation of Judge Van Stovall, and the appointment of the Hon. Jo Ann Ottis who resides in Brazos County, the presiding judges would like to designate Brazos County as the host county. On motion by the County Judge, seconded by Commissioner Cauley, the Court voted unanimously to accept the designation of host-county for the East Texas Cluster Court. The Court next considered setting the fee to be collected by the District Clerk in each suit filed for dissolution of a Vol 14 Page 1 Commissioners Court meeting November 15, 2005 5 marriage under Chapter 6 of the Family Code unless the person meets the statutory requirements for exemption. The fee amount is not to exceed $30.00. Half of the fee will be remitted to the comptroller and the remaining half is to be used by the Commissioners Court to fund a services provider that provides services described as "family violence and child abuse prevention, intervention, family strengthening, mental health, counseling, legal, and marriage preservation services to families that are at risk of experiencing or that have experienced family violence or abuse or neglect of a child." On motion by Commissioner Cauley, seconded by Commissioner Peters, the Court voted unanimously to set the amount to be collected at $30.00 per filing. The next matter before the Court was to consider adoption of an Order for the extension of the 900 hour rule for Texas County and District Retirement System (TCDRS) enrollment. Beginning with the first pay period on or after January 1, 2007, the county shall exclude from membership in TCDRS as a class those persons who fill a non-temporary position or office Brazos County on in a Community Supervision and Corrections Department participating through the County that normally requires services from the person for less than 900 hours per year. On motion by Commissioner Peters, seconded by I Vol 74 Page Commissioners Court meeting November 15, 2005 6 Commissioner Wassermann, the Court voted unanimously to adopt Order Number 05-010 for the extension of the 900 hour rule for Texas County and District Retirement System enrollment. A copy of the Order is attached hereto. The Court next considered entering into agreement with Aporia Solutions to update Brazos County's Information Technology and Security Policies and procedures. Cost of the service is not expected to exceed $4,000.00. On motion by Commissioner Cauley, seconded by Commissioner Mallard, the Court voted unanimously to enter into agreement with Aporia Solutions and authorized the County Judge to execute the Agreement on behalf of Brazos County. A copy of the Agreement is attached. The next matter for consideration was approval of tax refund applications from the following individuals and/or companies: a) John E. & Ethel M. Bunton, Over Payment $7.00 b) Marilyn Jeske, Over Payment $159.36 c) Rowena Johnson, Over Payment $100.00 d) Travis Smith & Lisa Camarillo, Over Payment $1,319.47 On motion by Commissioner Peters, seconded by Commissioner Wassermann, the Court voted unanimously to approve the tax refund applications. The Court next considered a request from Constable Vol 7Page Commissioners Court meeting November 15, 2005 7 Precinct 1, Archie Clark, to appoint Phillip Luster, as a non- paid Deputy Constable. On motion by Commissioner Wassermann, seconded by Commissioner Cauley, the Court voted unanimously to approve the request from Constable Clark to appoint Phillip Luster as a non-paid Deputy Constable subject, to appointment being within the allotted number of deputies. The Court next considered a request from Constable Precinct 2, Donald Lampo, to appoint James Ward Carter, as a non-paid Deputy Constable. On motion by Commissioner Peters, seconded by Commissioner Wassermann, the Court voted unanimously to approve the request from Constable Lampo to appoint James Ward Carter as a non-paid Deputy Constable subject, to appointment being within the allotted number of deputies. The next matter before the Court was approval of a Contractual Agreement between Brazos County and Hunt Construction for Construction Manager Services. The construction Manager fee is established at 3.7% of the total project construction amount. On motion by Commissioner Peters, seconded by Commissioner Cauley, the Court voted unanimously to enter into contractual agreement with Hunt Construction. A copy of the contractual agreement is attached. Vol -74 Page / 69 Commissioners Court meeting November 15, 2005 8 The Court next considered approval of requisitions #0006793 and 0006796, capital purchase of a water truck for the Road and Bridge Department. Two requisitions are necessary because the cost exceeded the budgeted amount by $2,816.00. On motion by Commissioner Wassermann, seconded by Commissioner Cauley, the Court voted unanimously to approve the two requisitions. The next matter before the Court was approval of a payment authorization in the amount of $3,381.79. These are attorney's fees associated with the lawsuit filed against the Bail Bond Board by Sonny Ellen, Cause No. 04-03202-CV-85. On motion by Commissioner Peters, seconded by Commissioner Cauley, the Court voted unanimously to approve the payment authorization. The Court acknowledged receipt of and ordered filed as submitted the Treasurer's Quarter Ending September 30, 2005 Investment Report. A copy is attached to and made a part of these minutes. There were no announcements of interest items and possible future agenda topics. There was no citizen input and/or concerns. Under Agency/Board/Committee reports by Court members, the following spoke: Vol 7A Page I70 Commissioners Court meeting November 15, 2005 Commissioner Mallard a) At the IGC meeting held yesterday, two items of discussion were Wayfinding and EOC operations. They were told that Wayfinding signage and such would cost between $350,000 and $700,000. Commissioner Peters a) He and the County Judge went to the Extension banquet and he congratulated the County Judge on being given the Friends of Extension award. There being no further business to come before the Court, the meeting was adjourned. 9 Vol 74 Page The foregoing minutes of the Commissioners Court meeting held November 15, 2005 have been examined and are approved in open Court this the J'~ day of n 2006, in Bryan, Duane Peters Commissioner, Precinct 2 grey C uley, Jr. Commiss oner, Precin t 4 Attest: C4i 4c a en McQueen County Clerk Lloyd Wassermann Commissioner, Precinct 1 Kenny Malla d Commissione Precinct Brazos County, Texas. BRAZOS COUNTY COMMISSIONERS COURT MEETING ON ~ -20Q-'5-AT , Name Organization/Department ~ w- s TF # Bcurfavi 42ek 1/e1 w Il~iv I.~vfZ-v MeNwid doves~A b~.v r' NW i4DA 's ~l I ~v► i►~.eeri ~lj n I s ~ I-e ss+s?,'$t,,~t c~ aL,Lf I &q. BRAZOS COUNTY COMMISSIONERS COURT MEETING ON /J; ~P~A& 200SAT Name Organization/Department Flz4ixG / 1 /O li f V~~l/J C' L✓ GY ~Cpk Y L U 4 VOIL U PAGE I'7q BRAZOS COUNTY, TEXAS BUDGET AMENDMENT(S) FOR THE 2005-2006 BUDGET YEAR NO. 05/06-7.1 thru 05/06-7.3 On this the 15cn day of November 2005 at a regular meeting of the Commissioners' Court, the following members were present: Randy Sims, County Judge, Presiding Lloyd Wassermann, Commissioner, Precinct 1 E. Duane Peters, Commissioner, Precinct 2 G. Kenny Mallard, Commissioner, Precinct 3 Carey Cauley, Jr., Commissioner, Precinct 4 Karen McQueen, County Clerk The following proceedings were held: THAT WHEREAS, on 15 November 2005 the Court heard and approved a budget amendment for the 2004-2005 budget year for Brazos County, Texas; and WHEREAS, an expenditure is necessary due to the necessity to meet unusual and unforeseen conditions which could not be reasonably included in the original budget adopted 20 September 2005, the following amendment(s) to the original budget are hereby authorized, as described on the attached page(s). ADOPTED AND APPROVED this the 15'h day of November 2005. THE COMMISSIONERS' COURT OF BRAZOS COUNTY, TEXAS. Original: County Clerk's Office and attached to the original budget Copies: County Auditor County Treasurer Commissioners' Court Minutes llElt~``~, PAGE 115 BRAZOS COUNTY, TEXAS BUDGET AMENDMENTS No. 05/06 - 7.1 11/15/2005 FD DIV ACCT PROJ DR/CR ACCOUNT NAME Increase Decrease 0100 11000100 51610000 CR Hourly - Staff 3,520.00 0100 11000100 51640000 CR Hourly - Temporary 1,296.00 0100 11000100 52500000 DR Employment Services 4,816.00 Commissioners Court: To reallocate funds to support employment services. VON PAGE IWO BRAZOS COUNTY, TEXAS BUDGET AMENDMENTS No. 05/06 - 7.2 11/15/2005 FD DIV ACCT PROJ DR/CR ACCOUNT NAME Increase Decrease 0100 18000100 60500000 DR Office Equipment 935.00 0100 18000100 59100000 CR DDEA 935.00 I_ I County Attorney - To move funds to allow for the purchase of phones with caller id. 110iJI, pkGE 177 BRAZOS COUNTY, TEXAS BUDGET AMENDMENTS No. 05/06 - 7.3 11/15/2005 FD DIV ACCT PROJ DR/CR ACCOUNT NAME Increase Decrease 0100 48035200 35500005 CR FEMA -Hurricane Katrina 100,000.00 0100 35500100 61450000 35500005 DR Misc. Expenditures 100,000.00 IEmergency Management - To increase the budget for revenues and expenditures for the anticipated costs for the housing voucher syste. VO -74,. PACE 1 7 g PERSONNEL CHANGE OF STATUS REQUESTS Commissioner Court Date: November 15, 2005 Department Submitting Information: Human Resources Purpose of Submissions: Consider and Take Action on g Department Submitting Employee Request Action Requested Request(s) Applies To Basic Supervision Broecker, Rebecca Transfer to Another Dept. Brazos Center Medina, Julian Woods, David New Hire New Hire District Attorney Jones, Michael Transfer to Another Dept. Juvenile - TYC Parole Brasher, Jean New Hire Sheriff's Office Kindell, Fred Budget Increase SO/Jail Aldridge, Patricia New Hire Ostiguin, Jesse Transfer within Dept. Miller, Benjamin Transfer within Dept. Approved in Commissioners' Court: County Judge's or Commissioner's S (This Copy to be attached to minutes; AGREEMENT FOR DEVELOPMENT AND TAX ABATEMENT IN REINVESTMENT ZONE NUMBER EIGHTEEN (18) COMMERCIAL TAX ABATEMENT, BRAZOS COUNTY, TEXAS STATE OF TEXAS COUNTY OF BRAZOS This Agreement entered into by and between BRAZOS COUNTY, TEXAS, a political subdivision of the State of Texas, acting herein by and through its duly elected Commissioners Court, (hereinafter referred to as "COUNTY"), and READFIELD MEATS, ,INC., a Texas Corporation, d/b/a RUFFINO MEATS & FOOD SERVICE (hereinafter referred to as "OWNER"). WITNESSETH: WHEREAS, the City Council of the City of Bryan, Texas, adopted an ordinance on S*pkww1&*c al , 2005 establishing Reinvestment Zone Number Eighteen (18) for Commercial Tax Abatement, City of Bryan, Brazos County, Texas (hereinafter referred to as "Zone") as authorized by CHAPTER 312, Texas TAX CODE. Now, therefore, in order to provide for the proper development of property in the Zone and to aid in the conduct of the operation thereof to the best interest of BRAZOS COUNTY, Texas, in accordance with the above-referenced ordinances and statute, the parties do mutually agree as follows: 1. The real property on which the real property improvement, personal property and equipment to be abated pursuant to this Agreement will be situated is a tract of land consisting of approximately 0.5507 acre of land described as Lot 3, Block One, Ruffin Subdivision, recorded in Volume 4233, Page 139, of the Official Records of Brazos County, Texas (herein the "Property"). The Property and all improvements constructed thereon will be hereinafter referred to as "the Premises". 2. All of the following obligations of OWNER form the consideration for COUNTY entering into this Agreement: a. OWNER's construction of an approximate 13,000 square feet addition to its current facility as industrial space (real property improvements) with a value of at least $984,217.00 on the Property, as described by listing or by site plan on Exhibit "A" to this Agreement, on or before December 31 2007. b. OWNER's adding and maintaining additional employees and new annual gross payroll and cumulative payroll as follows: i. two (2) additional employees in 2005 and an additional $66,667.00 in new gross annual payroll for an additional cumulative gross payroll of $66,667.00: ii. two (2) additional employees in 2006 and an additional $66,667.00 in new gross annual payroll for an additional cumulative gross payroll of $133,333.00; iii. two (2) additional employees in 2007 and an additional $66,667.00 in new gross annual payroll for an additional cumulative gross payroll of $200,000.00; vot 74 r(. t iv. three (3) additional employees in 2008 and an additional $100,000.00 in new gross annual payroll for an additional cumulative gross payroll of $300,000.00; and v. three (3) additional employees in 2009 and an additional $100,000.00 in new gross annual payroll for an additional cumulative gross payroll of $400,000.00. C. Owner's commitment to add at least $209,283.00 in equipment and personal property to the Premises by December 31, 2006. A schedule of equipment and personal property is attached hereto as Exhibit "B" and made a part hereof for all purposes. 3. OWNER agrees to construct all improvements in accordance with all applicable laws, ordinances, codes, rules, requirements or regulations of BRAZOS COUNTY, Brazos County, the State of Texas, and the United States, and any subdivision, agency or authority thereof in effect at the time of development. 4. OWNER agrees that the site plan, exterior design drawings, specifications and materials (hereinafter referred to as "Plans") for each improvement will be submitted to COUNTY, and/or its designated representative, for approval, which Plans are incorporated herein for all purposes. An official set of Plans will be designated by the OWNER and kept on file with the COUNTY. 5. OWNER shall keep the Premises insured against loss or damage by fire or any other casualty at full replacement value by purchasing insurance or through a self-insurance program. OWNER shall furnish BRAZOS COUNTY's Risk Manager with either a certificate of insurance or satisfactory documentation of its self-insurance program. 6. OWNER shall submit written notice to COUNTY within ninety (90) days after the Premises are materially damaged by fire or any other casualty. The notice shall either set forth the dates OWNER will commence and complete the repair, remodeling or renovation of the damaged Premises or state that OWNER will not undertake such repair, remodeling or renovation. If OWNER notifies COUNTY that it will not undertake repair, remodeling or renovation of the damaged Premises, or if OWNER fails to complete the repair, remodeling or renovation by the completion date set forth in OWNER's notice to COUNTY, then COUNTY shall terminate this Agreement and COUNTY shall recapture from OWNER all property tax revenue COUNTY has lost as a result of this Agreement as required by §312.205(a)(4), Texas Property Tax Code. 7. OWNER agrees to provide COUNTY and its designees access to the Premises during regular business hours throughout the term of this Agreement for the purposes of inspection and examination of books, records, construction, workmanship, materials, and installations to determine that OWNER has complied with any requirement of this Agreement. 8. OWNER agrees to limit the use of the Premises consistent with the general purpose of encouraging development or redevelopment within Reinvestment Zone No. 18 while partial abatement of ad valorem taxes is in effect pursuant to this Agreement. 9. OWNER represents and warrants that no member of the Brazos County Commissioners Court has an interest in the Premises and that the same are not owned or leased by any member of the Brazos County Commissioners Court. 10. OWNER agrees that COUNTY assumes no liability or responsibility by approving plans or making inspections in the event there is a defect in the improvements 2 ~y constructed on the Premises. The relationship between COUNTY, OWNER, and any taxing unit shall not be deemed to be a partnership or joint venture for purposes of this Agreement. 11. OWNER shall indemnify, hold harmless and defend COUNTY, its employees, officials, and agents from and against any and all obligations, claims, suits, demands and liability or alleged liability, including costs of suit, attorney's fees, damages, judgments, or settlements and related expenses arising in any manner from OWNER's construction, use and operation of the Premises, provided, however, that OWNER shall not be required to indemnify and hold COUNTY harmless for injury or harm caused by COUNTY's negligence or willful misconduct. 12. OWNER agrees to pay all ad valorem taxes and assessments (except as abated pursuant to this Agreement or otherwise exempt) owed to COUNTY prior to such taxes and/or assessments becoming delinquent. OWNER shall have the right to contest in good faith the validity or application of any such tax or assessment and shall not be considered in default hereunder so long as such contest is diligently pursued to completion. In the event that OWNER contests such tax or assessment, all uncontested taxes and assessments shall be promptly paid to City prior to delinquency. If OWNER undertakes any such contest, it shall notify COUNTY and keep COUNTY informed of the status of such contest. Should OWNER be unsuccessful in any such contest, OWNER shall promptly pay all taxes, penalties and interest resulting therefrom. 13. OWNER agrees that a default occurs if: (i) OWNER does not maintain the Premises in good condition, wear and tear excepted; (ii) OWNER fails to repair, remodel or renovate any material damage or destruction of the Premises as provided for in Section 6 above; (iii) OWNER fails to use the Premises for the purposes contemplated by this Agreement or allows the same to become vacant; (iv) OWNER does not pay all non-abated taxes in the manner required by Section 12 hereof; (v) OWNER fails to comply with all applicable statutes, administrative regulations, or ordinances of the United States, the State of Texas and/or BRAZOS COUNTY governing the operations or maintenance of the Premises or the conduct of OWNER's business in Bryan, Texas; (vi) OWNER fails to perform its obligations under Section 2a. and 2c. of this Agreement on or before December 31, 2007 and December 31, 2006 respectively; or (vii) OWNER failing to maintain an additional gross annual payroll and additional cumulative gross payroll in any calendar year as provided in Section 2b. of this Agreement; (viii) OWNER fails to comply with any other duty or obligation arising under this Agreement. COUNTY shall notify OWNER in writing of such default, and OWNER shall have thirty (30) days after receipt of such written notice, to cure any default, if the default can be cured. If OWNER fails to cure such default, or if OWNER's default can not be cured, COUNTY may, at COUNTY's sole option (except as to a default defined in (ii) above, which shall be governed by Section 6 of this Agreement) require OWNER to pay the current year's taxes in full or COUNTY may terminate this Agreement and recapture from OWNER a sum of money equal to all of the tax revenues COUNTY has lost due to the partial abatement of taxes on real property improvements from the inception of this Agreement. The remedies listed in this paragraph shall be in addition to any other remedies that COUNTY may have, both legal and equitable. 14. OWNER agrees to submit to the Research Valley Partnership, Inc. ("RVP") as agent for the COUNTY, no later than December 31, 2005 and on December 31" of each year thereafter during the term hereof, a certified report executed by a duly authorized officer of OWNER in the form to be promulgated and supplied by the RVP verifying compliance with the payroll and capital expenditure requirements of this Agreement. 3 VO ~ 4 PACE I ~ a 15. This Agreement shall be for a term of five (5) years unless sooner terminated. The partial exemption from ad valorem taxation of real property improvements during each tax year covered by this Agreement shall be computed by taking a percentage of the increase in value of the Property and the Premises on January 0 of each tax year over the value on January I" of 2005, which is the year this Agreement was executed by OWNER and COUNTY. The agreed value of the Property was $41,980.00 on January 1, 2005, which was derived from existing records and the best estimate of value available from the Brazos County Appraisal District. It is agreed that the personal property and equipment for which abatement of taxes is hereby granted has no value as of the date hereof, but will be newly placed upon the Property during the first year of this Agreement. The partial exemption percentages are as follows: Tax Year Percentage of Increased Value over January 1, 2005 Value to be Abated Year 1 (2006) 70% Year 2 50% Year 3 30% Year 4 20% Year 5 10% 16. Miscellaneous. Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective while this Agreement is in effect, such provision shall be automatically deleted from this Agreement and the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected thereby, and in lieu of such deleted provision, there shall be added as part of this Agreement a provision that is legal, valid and enforceable and that is as similar as possible in terms and substance as possible to the deleted provision. a. Texas law to apply. This Agreement shall be construed under and in accordance with the laws of the State of Texas and the obligations of the parties created hereunder are performable by the parties in Brazos County, Texas. Venue for any litigation arising under this Agreement shall be in a court of appropriate jurisdiction in Brazos County, Texas. b. Sole Agreement. This Agreement constitutes the sole and only Agreement of the Parties hereto respecting the subject matter covered by this Agreement, and supersedes any prior understandings or written or oral agreements between the parties. C. Amendments. No amendment, modification or alteration of the terms hereof shall be binding unless the same shall be in writing and dated subsequent to the date hereof and duly executed by the parties hereto. Any proposed amendment, modification or alteration shall be provided to The City of Bryan and to the Bryan Independent School District for review and comment prior to adoption by the Brazos County Commissioners Court. d. Rights and Remedies Cumulative. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive its right to use any and all other legal remedies. Said rights and remedies are 4 provided in addition to any other rights the parties may have by law, statute, ordinance or otherwise. e. No Waiver. COUNTY's failure to take action to enforce this Agreement in the event of OWNER'S default or breach of any covenant, condition, or stipulation herein on one occasion shall not be treated as a waiver and shall not prevent COUNTY from taking action to enforce this Agreement on subsequent occasions. £ Assignment. OWNER shall not assign this Agreement without the written approval of the Brazos County Commissioners Court. A change in ownership of a majority of the stock of OWNER is an assignment for the purposes of this paragraph. If OWNER assigns this Agreement without written approval of the Brazos County Commissioners Court, this Agreement shall terminate immediately and the partial abatement of taxes on the real property provided for herein shall cease from the date such unauthorized assignment occurred. g. Notices. COUNTY and OWNER hereby designate the following individuals to receive any notices required to be submitted pursuant to the terms of this Agreement: COUNTY Randy Sims, County Judge 300 E. 26a' Street Bryan, Texas 77803 CITY OF BRYAN CITY MANAGER P.O. Box 1000 Bryan, Texas 77805-1000 OWNER RUFFINO MEATS & FOOD SERVICE 2130 East William Joel Bryan Parkway Bryan, Texas 77802 BRYAN INDEPENDENT SCHOOL DISTRICT Chris Peterson, President - Board of Trustees 101 N. Texas Avenue Bryan, Texas 77803 The parties hereto have executed this Agreement in duplicate originals, each of equal dignity. Each party has stated the execution date below the signature of its authorized representative. If the parties sign this Agreement on different dates, the later date shall be the effective date of this Agreement for all purposes. County Judge RUFFINO'S MEAT & FOOD SERVICE BY: (Title) Executed on: 5 VOL. ~'1 FAGEA~ mvrla ails - v 111IMM OL PAGE 195 V'7_ EXHIBIT `B' - EQUIPMENT AND PERSONAL PROPERTY 2. 3. Warehouse racking (2005) $ 9,283.00 Smokehouse (2005-2006) $100,000.00 New Computer System (2006) $100,000.00 Total $209,283.00 VOL~PRGE ~~p i BRAZOS COUNTY BRYAN, TEXAS ORDER NO. 05-010 EXTENSION OF THE 900 HOUR RULE FOR TEXAS COUNTY & DISTRICT RETIREMENT SYSTEM ENROLLMENT As authorized by Section 32(b) of House Bill 633 as passed in the regular session of the 79`h Legislature and signed into law on 17 June 2005; IT IS HEREBY ORDERED by the Commissioners Court of Brazos County that until the first pay period beginning on or after I January 2007, Brazos County shall exclude from membership in TCDRS as a class those persons who fill a non-temporary position or office in Brazos County or in a Community Supervision and Corrections Department participating through the County that normally requires services from the person for less than 900 hours per year. ADOPTED this 15`h day of November, 2005, by a vote of ~ ayes and ~ nays. Sims, County Judge ATTEST: Karen McQueen, Coun y Clerk Office of the County Judge . 300 East 26~" St. • Suite 114 . Bryan, Texas 77803 • Fax: (979) 361-4503 Ira,3l07-q PAGE 18 7 A P O R I A S O L U T I O N S `~TRAtE{;iFS, n5SC 5'. r~!F.fa~ & Sp~t~AGNS November 1, 2005 Mr. Eric Caldwell Director of Information Technology Brazos County Information Technology 202 East 27th Street Suite 102 Bryan, Texas 77803 Dear Eric, The purpose of this document is to outline the details of the engagement between Brazos County and Aporia Solutions, Inc. (Aporia). Brazos County wishes to engage Aporia to utilize a certified security professional to update the County's Information Technology and Security policies and procedures and other related material. Aporia will follow these steps for the updates: ♦ Review existing documented security policy and procedures (P&P) ♦ Identify polices that are not in place but should be created to meet the ISO 17799 standard. ♦ Interview appropriate parties for non-documented P&P ♦ Create and document all P&P as needed ♦ Participate as needed to facilitate the approval of the P&P by the County's management ♦ Organize documentation in an easy to locate/find/update structure. The County's management is responsible for the formal adoption of these policies and approvals. Aporia charges an hourly rate of $125.00 for this service. Aporia is pleased to offer a 20% discounted "preferred customer" rate of $100.00 per hour to Brazos County and this includes the use of our tools, systems and travel. We expect this engagement to take 40 hours. If required, Aporia will review and update the County's polices once a quarter after the initial engagement at $1,000.00 per day. We expect the initial review and update to take place in December 2005 at a mutually agreed time. Brazos County will be billed after completion of the initial review and after subsequent quarterly visit. Payment terms are net 10 days. One and half percent interest is charged on all overdue invoices. As an acceptance of this document, please sign and fax it to 713-278 6906. Brazos County Information Technology Aporia Solutions, Inc. Eric Caldwell, Director IT (Date) Richard Gasdia, Principal (Date) 9801 Westheitner Road Suite 302 Houston Texas 77042 wvaw_AportaSolutlons.com 713-266-8785 Faz 713-278-6906 7 nr 1a lJ a. J CONTRACT FOR CONSTRUCTION MANAGER SERVICES BETWEEN OWNER AND CONSTRUCTION MANAGER This CONTRACT FOR CONSTRUCTION MANAGER SERVICES BETWEEN OWNER AND CONSTRUCTION MANAGER (hereinafter referred to as the "Contract") is made and entered into by BRAZOS COUNTY, TEXAS located at 300 East 26th Street, Suite 117, Bryan, Texas 77803 (hereinafter referred to as the "Owner") and HUNT CONSTRUCTION GROUP, INC., an Indiana Corporation, with local offices located at 4099 McEwen, Suite 400, Dallas, Texas 75244 (hereinafter referred to as "Construction Manager"). This Contract is executed under seal and shall be effective on the date executed by the last party to execute it. The construction manager services required by this Contract are to be rendered for the following two construction projects: (1) Brazos County Exhibit Hall; Arenas, Stall Bams and (2) the Sheriff's Office Building (hereinafter collectively referred to as the "Project") which will be more fully described in Proposal Request No. 2005-038 (9 pages) issued by Brazos County and a future Exhibit "B". Additional Projects may be added to this contract by future Amendments. NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements stated herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Owner and the Construction Manager agree: 1. REPRESENTATIONS AND WARRANTIES By executing this Contract, the Construction Manager makes the following express representations and warranties to the Owner: A. Construction Manager understands that time is of the essence, and has agreed to undertake all efforts to expedite the performance of the "Project," as defined and set out herein, from receipt of the first set of reproducible documents which include the (1) Brazos County Exhibit Hall; Arenas, Stall Barns and (2) the Sheriff's Office Building, the Construction Manager shall provide the necessary trade documents to the Owner for bidding and the construction of the `Project' will commence within fifteen (15) days from the date of the first Trade Contract Awarded. B. The Guaranteed Maximum Price (GMP) for the Project shall be determined at a later date by Contract Amendment, which said Fixed Limit amount represents the not-to-exceed sum of the costs for the Construction of the Project, the "Work," and Other Services of the Construction Manager as prescribed which includes those costs for (1) Construction Costs of the `Project", including contingency; (2) Construction Manager's Fee; and (3) The General Conditions; and constitutes the Owner's limit of liability to Construction Manager for the completion of the "Project," in accordance with this Agreement. C. Construction Manager will review the Project, as amended and approved by the Owner and prepared by (1) Jim Singleton, architect or (2) by WHJ Architects (the "Architect") and agrees to abide by the final program as designed. Uocu=nt X: 893250 1 VOLI PAGE 18 / D. The Construction Manager assumes full responsibility to the Owner for the improper acts and omissions of the Construction Manager's consultants or others employed or retained by the Construction Manager in connection with the Project. E. The Construction Manager further understands that the Owner may appoint a designated Project Manager. If Owner fails to take such action, Construction Manager understands and agrees that the Purchasing Agent, is deemed to act as the Project Manager. The Construction Manager shall coordinate with the appointed Project Manager and communicate with the Purchasing Agent. F. The Construction Manager accepts the relationship of trust and confidence established between it and the Owner by this Contract. It covenants with the Owner to furnish the necessary skill and judgment and to cooperate with the Architect and Architect's sub- consultants on the Project furthering products and equipment in the interest of the Owner in the Project. The Construction Manager agrees to furnish to the Owner all services required of it herein. The Construction Manager shall endeavor to promote furtherance of the Project in an expeditious and economical manner consistent with the interests of the Owner in the Project, and the requirements of the Contract Documents. G. The Construction Manager agrees to work under the direction of the Owner with the Architect's and Owner's other consultants from design through final completion of the Project including the final warranty inspection and resolution of all outstanding Project related claims or disputes. Parties acknowledge and agree that the Construction Manager is not providing any Design Services. The Construction Manager shall provide its expertise and services in all matters relating to the Project, and in all matters relating to Project construction. H. The Construction Manager understands that the Owner intends to have the Project fully completed within the time and budget limits prescribed for the Project. Construction Manager agrees to perform its Services hereunder consistent with that intention. Further, it is understood and agreed by Construction Manager that the Project is to be built utilizing various construction contractors/trade contractors. All such construction contracts shall be awarded pursuant to Texas law. 1. Construction Manager shall not be considered an employee of the Owner, but shall occupy the status of Independent Contractor with the Owner. The Construction Manager shall perform its tasks and duties consistent with such status, and will make no claim or demand for any right or privilege applicable to an officer or employee of the Owner, including, but not limited to, worker's compensation, disability benefits, accident or health insurance, unemployment insurance social security or retirement membership. J. All references to days mean calendar days. 2. GENERAL SERVICES It is understood that time is of the essence, and Construction Manager agrees to undertake all necessary efforts to expedite the performance of services required herein, so that on-site 2 Do uwnl # 893250 ti'3 0P, rAG€ ~ / V construction of the Project can commence and be substantially completed within the time period set forth herein above. A. Construction Manager shall immediately commence design review, value engineering, scheduling and budget related services in connection with the work, and will continue same. Construction Manager shall proceed with sufficient qualified personnel necessary to expedite and fully complete all services required under this Contract in the highest professional manner consistent with the requirements of the Contract Documents. Owner retains the right to request replacement of any employee assigned by Construction Manager to the Project. However, this replacement may involve salary revision adjustment for any newly assigned employee. B. A Schedule of Performance of services hereunder shall be mutually agreed upon between Construction Manager, the Architect, and the Project Manager, which shall enable the Project to proceed continuously to substantial completion. Continued inexcusable failure of Construction Manager to maintain progress in accordance with the agreed Schedule shall be grounds for declaring Construction Manager in default. C. Within fifteen (15) days following completion of (B) above, Construction Manager shall develop and provide to Owner a Project Schedule consisting of a coordinated and integrated Project Design Schedule and Project Construction Schedule. Construction Manager shall update the project scheduling, incorporating a detailed schedule for the construction operations of the Project, including activity sequences and durations, allocation of labor and materials, processing of shop drawings and samples, and delivery of 'products and equipment requiring long lead time procurement. The schedule shall be in CPM form as approved by Owner and shall be updated Monthly. D. Construction Manager shall provide regular monitoring of the project time schedule as the Project progresses and identify potential variances between schedule and probable completion dates. Further, Construction Manager shall review Project Schedule for construction not started or incomplete and recommend to the Owner and Trade Contractors adjustments in the Project Time Schedule to meet the completion date. Construction Manager shall provide summary reports of each monitoring, and document all changes in the Project Time Schedule. E. Architect, under separate contract with the Owner, will produce, assemble and deliver to Construction Manager (through Owner) Working Plans and Specifications. Construction Manager will review the work Plans and Specifications, as received, and shall advise Owner as to their acceptability, suitability, need for revisions and any areas in which the working Plans and Specifications increase the Scope and cost of the Project, or extend the Completion Dates, without assuming any of the responsibilities of the Architect. 3. PRECONSTRUCTION PHASE SERVICES The Construction Manager understands that the Architect shall prepare Schematic Designs, Preliminary Designs, and Designs for Construction in accordance with the contract between Owner and Architect. The Construction Manager shall perform the following 3 D umnt K 893250 VOL 74 PAGE Preconstruction Phase services in support of the Owner as the Architect executes their responsibilities under their separate contract. The description of these Services is necessarily general rather than specific in detail, and shall not be construed so as to exclude any Services customarily provided by experienced and competent construction management organizations incident to construction projects of the nature and scope of the Project. The following divisions and descriptions of Services are intended only to add clarity and not in contemplation of fixed events whereupon the character of Construction Manager Services will change from one (1) type to another with respect to the Project. The Construction Manager shall: A. Attend regularly scheduled meetings with the Owner and the Architect during the development of Schematic Designs, Preliminary Designs, and Designs for Construction and advise on site use, foundations and improvements, selection of materials, building systems and equipment, provide recommendations on construction efficiency and feasibility, availability of materials and labor time requirements for installation and construction, and factors related to cost, including costs of alternative designs, equipment or materials, preliminary projects, and possible economies, without, however, assuming the responsibilities of the Architect. B. Monitor the Construction Budget to maintain the budget within the GMP. Construction Manager shall prepare an estimate based on quantity surveys of the Plans and Specifications for approval by the Owner as the Construction Budget; update and refine this estimate for Owner's approval as the development of the Plans and Specifications proceeds, and advise the Owner if it appears that the Construction Budget will not be met and make recommendations for alternate action. Construction Manager shall also track and monitor the Project Budget and shall provide period reports to Owner as to the status of the Project Budget. For the purposes of this agreement, the Construction Budget shall consist of all items contained in the GMP. The Project Budget shall be the total of the Construction Budget and all other Project costs. C. Review the Plans and specifications as they are being prepared, on the basis of value engineering, recommending alternative solutions whenever design decisions, plans and details adversely affect construction efficiency and feasibility, budgeted costs or schedules. D. Recommend the purchase or release and procurement of long lead items to endeavor to assure delivery by the required dates. Construction Manager understands that if such items are to be purchased by the Owner, they shall be purchased in accordance with all the applicable laws of the State of Texas by the Owner's Director of Purchasing. This requirement, which may include the need to competitively bid the items, shall not relieve the Construction Manager of its duties in performance of this Contract with regards to the GMP or substantial completion. E. Make recommendations to Owner regarding the division of Construction Work in the Plans and Specifications to facilitate the bidding and awarding of contracts, allowing for phase construction, taking into consideration such factors as time of performance, minimization of work site interference, on time, material and equipment procurement, availability of labor, overlap in trade jurisdictions, provisions of temporary facilities, coordination and sequencing of the Project, and minimization of overall Project costs, and availability of the work site. Document N: 993250 VO 1._ PAGE-1 4 ~ a F. Review Plans and Specifications with Owner to assure: (1) efficiency in the use of materials and methods of construction; (2) coordination among the plan sheets and among the various bid packages; and (3) elimination of areas of conflict and overlapping in the Phase Construction packages to be performed by the various contractors/trade contractors. G. Indicate by written memorandum to the Project Manager, with qualifications where necessary, review and approval as to construction feasibility and for bidding purpose of the Architect's final Plans and Specifications for every division or Phase Construction package of the Project, including public advertising for contract bids. Such review and approval as to construction feasibility, however, shall not be deemed an assumption by Construction Manager of any of the Architect's responsibilities, including errors and omissions in design. The Owner and Construction Manager shall agree on a Contract for construction to be used in the various Trade Packages, the contract between the Owner, Construction Manager and each Trade Contractor shall control the legal relationships between the Owner, Architect, the Construction Manager and the contractor/Trade Contractors, insofar as actual performance of the construction work and the rights and duties of the parties in connection therewith. Provided, however, that where conflict exists between such documents and this Contract, the provisions of this Contract shall control. H. Assist in the production of each set of final bid documents for the Project by combining the Owner's standard bid documents and forms with the Architect's final Plans and specifications, with such special provisions as may be necessary. 1. Endeavor to develop contractor interest in the Project as Working Plans and Specifications are completed; jointly with the Architect and Owner, establish bid schedules and schedules for pre-bid conferences, including on-site visits, to endeavor to assure the prospective bidders understand the various site conditions, availability, coordination and scheduling requirements. 4. BIDDING/NEGOTIATION A. Construction Manager shall continue to develop Trade Contractor interest in the Project as working Plans and Specifications are fully completed. Jointly with the Architect and Owner, Manager shall establish bid schedules and conduct pre-bid conferences, including on-site visits, to assist the bidders so they understand the various site conditions, coordination and scheduling requirements, and shall assist the Owner in bidding and negotiation of Trade Contracts as identified elsewhere in this Contract. B. During the bid advertising period and prior to bid opening, the Construction Manager shall issue full sets of bidding documents to interested contractors upon receipt of the Contractor's deposit for such documents. The Construction Manager shall return the Contractor's deposit upon return of the bidding documents, provided the contractor returns the bidding documents in accordance with the developed refund criteria. All advertising and document reproduction costs associated with bidding shall be included as a cost in the GMP Amendment. 5 Do um t# : 893250 t _NCE C. Prior to bid opening, the Construction Manager shall: 1. Provide to Owner and Architect a copy of any and all written requests for product substitutions along with a written recommendation as to the acceptability of such substitutions. Construction Manager understands that the Architect is solely responsible for determining the adequacy of a proposed substitution and the Construction Manager's recommendations are non-binding on the Architect. 2. Attend any and all pre-bid meetings. 3. Provide to the Owner and Architect all requests for addenda or clarifications which the Construction Manager has received from prospective bidders as necessary to ensure Trade Contractors are adequately informed prior to bid opening. The Architect shall issue all necessary addenda or clarifications. D. After bid opening, the Construction Manager shall assist the Owner in assessing the qualifications of the apparent low bidder to determine if said bidder is qualified to construct the Project. E. If requested, the Construction Manager shall assist the Owner in negotiating a reduction in Scope of Services with the apparent low-bidder as determined by the Owner, in accordance with applicable Texas law. 5. CONSTRUCTION PHASE SERVICES Construction Manager shall immediately commence and complete all Construction Phase Services to the extent necessary to achieve completion of the Project within the time and budget limits stated in this Agreement. A. The Construction Manager shall supervise, administer, coordinate, and direct the entire Project using its best skill and attention. It shall be responsible for all construction means, methods, techniques, sequences and procedures and for coordinating all portions of the work under the Contract. The Construction Manager assumes full responsibility for the successful completion of the Project within the time limits established in Section I(A), as said time periods may be adjusted pursuant to the terms of this Contract. The Construction Manager shall not be relieved from his obligations to ensure the work is performed in accordance with the Contract documents either by the activities or duties of the Owner or by inspections, tests, or approvals required or performed by persons other than the Construction Manager. B. Provide the usual and necessary traditional Construction Management Services, including, but not limited to, the following: 1. Maintain a competent, qualified, full-time staff as provided in Exhibit "A" hereto attached to coordinate and provide general direction of the work and progress of the Trade Contractors on the Work, so as to complete same in accordance with the Contract Documents. 6 Document b: 893250 2. Establish procedures for coordination among the Owner, Architect, Trade Contractors and Construction Manager pertaining to the Project, and implement such procedures. Establish emergency procedures and provide protection for the Project, equipment, machinery, tools and materials. Construction Manager shall be responsible for the establishment, coordination and implementation of safety programs for the Project. 3. Schedule and conduct progress meetings at which Trade Contractors, Owner, Architect, other design consultants (as necessary), and Construction Manager may discuss jointly such matters as procedures, progress, problems and scheduling. 4. Require the Trade Contractors to provide to the Construction Manager a detailed Schedule for the operations of Trade Contractors on the work, including activity sequences and durations, allocation of labor and materials, processing of shop drawings and samples, and delivery of products requiring long lead time procurement. 5. Review and require the adequacy of the Trade Contractors' personnel and equipment and the availability of materials and supplies to meet the Project Time Schedule. Recommend courses of action to the Owner when requirements of a Trade Contract are not being met. Implement such courses of action as are required. Recommend and facilitate termination or suspension of Trade Contractors, as necessary, for the Owner. On behalf of the Owner, facilitate and enforce any actions required in order to ensure that the Trade Contracts are complied with. 6. Develop and monitor a system of cost control. Revise and refine the initially approved Project Construction Budget; incorporate approved changes as they occur, and develop cash flow reports and forecasts as needed. Identify variances between actual and budgeted or estimated costs, and advise Owner and Architect, in writing, whenever projected cost exceeds budgets or estimates. 7. Develop and implement a system for review and processing of Change Orders. Recommend necessary or desirable changes to the Owner and the Architect, review requests for changes, submit recommendations to the Owner and Architect, and assist in negotiating Change Orders. 8. Develop and implement a procedure for the review and processing of applications by Trade Contractors for progress and final payments. 9. Construction Manager shall obtain all building permits on behalf of the Owner, and ensure that all Trade Contractors obtain permits for inspection or temporary facilities required to be obtained directly by the various Trade Contractors. Obtain approvals related to actual construction from all the authorities having jurisdiction. Costs for permits, if any, shall be reimbursed to Construction Manager by Owner. 10. Review, monitor and provide for quality control programs for the work of Trade Contractors to protect the Owner against defects and deficiencies, without assuming any of the Architect's responsibilities, such as, and including, errors and omissions in design. This review and monitoring by the Construction Manager during the Construction Phase shall not relieve the Trade Contractors from their responsibilities for construction means, methods, 7 Ww.. W: 893250 VO'LJ~ F GE 115 techniques, sequences and procedures, nor for their responsibility to cant' out the construction work in accordance with the Contract Documents. Failure of a particular Trade Contractor to perform in a satisfactory manner does not relieve the Construction Manager of the requirement to adhere to the GMP nor does it relieve the Construction Manager of any requirement to complete the Project in the time specified. 11. Review the safety programs of each of the Trade Contractors and make appropriate recommendations to the Owner and Trade Contractor. The performance of such services by the Construction Manager shall not relieve the Trade Contractors of their responsibilities for the safety of persons and property, and for compliance with all federal, state and local statutes, rules, regulations, ordinances and orders applicable to the conduct of the Work. Should the Construction Manager become aware of any unsafe operations being used by a Trade Contractor the Construction Manager shall take immediate and appropriate action to correct the unsafe condition up to and including stopping the Trade Contractor from continuing. The Project Manager shall be immediately notified if such action is taken. The Construction Manager shall not be responsible for the safety program of any Trade Contractor. 12. Refer all questions relative to design to the Architect. 13. In collaboration with the Architect, establish and implement procedures for expediting the processing and approval of shop drawings and samples. Construction Manager understands that the Architect is responsible for approving shop drawings and samples. 14. Monitor factory inspection and testing of items fabricated outside the Project area if required by the Project Specifications and included in the GMP. 15. Record and submit to the Owner and the Architect progress reports of the Work in the form of written progress reports, including information on the Trade Contractors' work and the percentage of completion, and maintain a detailed daily log of jobsite events, which shall be provided to Owner. 16. Maintain at the Project site, on a current basis, records of all Trade Contracts, Plans and Specifications received from the Architect, standards, shop drawings, samples, purchases, materials, equipment, maintenance and operation manuals and instructions, and any other documents and revisions thereto which arise out of the Work. Obtain data from Trade Contractors and maintain a current set of Record Drawings, Plans and Specifications received from the Architect. At the completion of the Work, deliver all such records, including a full set of As-Built Drawings, operating manuals and warranties received from the Trade Contractors, to the Owner. 17. Secure from all Trade Contractors and lower tier Trade Contractors prior to commencement of work the required Certificates of Insurance and/or certified copies of policies evidencing proper insurance coverage to be in force. Maintain these Certificates and policies among the jobsite records and provide copies of same to Owner for its records. 18. Instruct the Owner's maintenance personnel, as necessary, and coordinate the checkout of utilities, operational systems and equipment. 8 Da um nt N: 893250 FA 110 19. Conduct with the Owner and Architect post-completion inspections during the one-(1) year warranty period to ascertain the existence of defects in material and workmanship and determine the necessity for correction of same. Assign, if possible, the causes of same, the responsible Trade Contractor, and recommend reasonable corrective action. Aid the Owner in obtaining such corrective action and in filing insurance and bond claims where coverage is available. Ultimate responsibility for correcting defects in material and workmanship shall rest with the Construction Manager as outlined in the GMP. 20. Conduct with the Owner and Architect a Final Warranty Inspection within thirty (30) days of the end of the one-year (1-year) warranty period. 21. Fully and completely resolve, by litigation or otherwise, all Trade Contractor claims arising out of the construction of the Project. 6. TERMINATION OF A TRADE CONTRACTOR A. In the event of termination of a Trade Contractor, whether for cause or convenience, Construction Manager shall proceed on behalf of the Owner, subject to review and approval by the Owner, in the following manner to secure a replacement Trade Contractor: 1. In the event of termination for cause, the Construction Manager shall make demand upon, consult and negotiate with the surety of a terminated Trade Contractor to obtain a replacement and enter into a Trade Contract with the surety-proposed replacement upon the Owner's approval; 2. In the event of termination for convenience or in the event the surety fails or refuses to perform in a default situation, assist the Owner to secure a re-bid of that portion of the Work affected. If such termination was approved by the Owner, then the Project time shall be adjusted equitably. B. In the event that the Construction Manager recommends, in writing, termination of a Trade Contractor for failure to perform, and the Surety fails to perform under the terms of the Performance and Payment Bonds, Construction Manager shall indemnify and hold harmless the Owner, from and against claims, damages, losses and expenses, including, but not limited to, attorneys' fees, expert witness costs, and all costs associated with defending a third party claim, arising out of or resulting from the termination of a Trade Contractor. 7. OWNER'S REPRESENTATIONS AND RESPONSIBILITIES A. To the best of its ability, Owner shall provide full information regarding its requirements for the Project. Owner represents to the Construction Manager the sufficiency of funds available to Owner to meet its obligations up to the GMP as established above. B. The Owner shall designate herein a Representative who shall be fully acquainted with the Project and with authority to approve the Project Budget, render decisions promptly and furnish information expeditiously. 9 Document p: 893250 ~[j ff yy l~ _ C. The Owner, through the Architect, will furnish reproducible originals of each Trade Contract Package. D. The Construction Manager will award all Trade Contracts and will make payment to Trade Contractors after Construction Manager has reviewed and recommended approval of payments for them and has received said payment from the Owner. Owner shall pay Construction Manager within thirty (30) days of receipt of approved payment application. E. Construction Manager will bid each individual Trade Package in accordance with all applicable laws of the State of Texas. 8. TRADE CONTRACTS A. All construction work, other than professional and General Conditions services that the Construction Manager customarily performs with its own field staff, shall be performed by Trade Contractors. It is understood and agreed that the Cost of Construction line items identified in Construction budget shall be further defined by the Construction Manager at the time the GMP is firmly established. This document shall delineate the Cost of Construction by the estimated amount for each Trade package proposed. This document provides the method by which the Construction Team (Owner, Construction Manager and Architect), may continuously determine whether the Project is within the GMP throughout the Project life. The line item amounts established in the Construction Budget as defined in 3.(B) will be adjusted according to the amounts of the applicable Trade Contractor awards utilizing the "Construction Contingency" line item as the balance line item. B. Each Trade Contract shall be awarded at the sole discretion of the Construction Manager pursuant to the applicable Texas law regarding award of public works contracts. If the Trade Contract awarded for a particular item in the Project is less than the estimated cost of the item in the Project Budget, the difference shall be added to the "Construction Contingency" line item. However, if the Trade Contract awarded for a particular item in the Project exceeds the amount allotted in the Construction Budget, one (1) or more of the following initial procedures will be undertaken at the election of the Owner after consulting with the Architect and the Construction Manager: 1. Deletion of non-essential bid alternates to try to bring the bid within the amount specified in the Construction Budget but without reducing the overall Scope of the Work unless Owner approves; 2. Negotiations with the apparent low-bidder to determine possible reductions, savings, or substitutions; 3. Rejection of all bids and re-bidding; 4. Redesigning to lower the cost to the budgeted amount, with the Owner's consent, and re-bidding; or 10 Document N: 89]]50 5. Proceeding with the award using funds contained in the "Construction Contingency" (i.e. Rinds in the Contingency and uncommitted budgeted funds or funds saved from prior awards, which were below the established line item amounts). C. If no bids are received on a particular item, the Construction Manager shall re-bid. D. The Owner and Construction Manager shall agree on a Contract for Construction to be used in the various Trade Packages being bid, and each contract shall include a full indemnification of the Owner and Construction Manager as provided in this Contract. The Construction Manager shall prepare Contracts for the Trade Contractors and shall provide full supervision and administration for the performance of the Trade Contractors. It is the responsibility of the Owner to make payment to the Construction Manager for the work related to the Trade Contracts. Payment to be conditioned upon proper- review and approval by the Architect and Construction Manager. 9. SUBSTANTIAL COMPLETION, FINAL COMPLETION, AND DELAY DAMAGES A. The term "Substantial Completion," as used herein, shall mean that point at which, as certified in writing by the Architect, the Project is at a level of completion in strict compliance with the Project Plans and Specifications such that the Owner or its designee can enjoy beneficial use or occupancy and can use or operate it in all respects, for its intended purpose. Partial use or occupancy of the Project shall not result in the Project being deemed substantially complete, and such partial use or occupancy shall not be evidence of Substantial Completion. B. The term "Final Completion," as used herein, shall mean that point at which, as certified in writing by the Architect, it is determined that all deficiencies found have been corrected and that it is appropriate to release retainage and/or make final payment. C. The Construction Manager shall pay the Owner the sum of $100.00 for each and every calendar day of un-excused delay in achieving Substantial Completion, not to exceed $50,000.00. Any sums due and payable hereunder by the Construction Manager shall be payable, not as a penalty, but as damages representing as estimate of delay damages likely to be sustained by the Owner, estimated at or before the time of executing this Contract. When the Owner reasonably believes that Substantial Completion will be inexcusably delayed, the Owner shall be entitled, but not required, to withhold from any amounts otherwise due the Construction Manager an amount then believed by the Owner to be adequate to recover liquidated damages applicable to such delays. If and when the Construction Manager overcomes the delay in achieving Substantial Completion, or any part thereof, for which the Owner has withheld payment, the Owner shall promptly release to the Construction Manager those funds withheld, but no longer applicable, as liquidated damages. 10. GUARANTEED MAXIMUM PRICE A. The Guaranteed Maximum Price (GMP) for the Project shall be determined at a later date by future Amendment, which said Fixed Limit amount represents the not-to-exceed sum of I1 Documcm M'. 993350 PAGE the costs for the Construction of the Project, the "Work," and Other Services of the Construction Manager as prescribed which includes those costs for 1) Construction Costs of the "Project" including contingency; 2) Construction Manager's Fee; and 3) The limits of the General Conditions; and constitutes the Owner's limit of liability for the completion of the "Project." B. The Construction Manager will have an opportunity to review the Plans and Specifications, the Construction Manager shall develop and submit to the Owner, the estimated costs for construction of the Project. If, the Owner and Construction Manager agree that the costs of construction of the Project exceed the GMP, Owner shall make an election between the following two (2) options: 1. In cooperation with the Construction Manager, require the Architect to redraw and redefine the plans and specifications in a manner necessary to bring the aggregate costs for construction under the GMP. 2. Increase the amount of the GMP to the amount established by agreement between the Owner and the Construction Manager. C. Upon agreement between the Owner and Construction Manager on the GMP, the Project Budget shall be established and the GMP shall not be changed except by Change Order to this Agreement. D. The Construction Manager also agrees that part of the cost for the "Construction of the Project," shall also include the sum of the actual cost of construction for the various Trade Contracts bid, including Change Orders in accordance with this contract. E. The foregoing GMP, unless changed by supplemental Agreement for Change Orders, represents the limit of obligation that Owner may have insofar as the cost for final completion of the Project as described by the dated documents in future Exhibit "B". Should additional amounts be expended over and above the GMP (as may be amended) to achieve completion of the Work, including payment to Construction Manager, in accordance with this Contract, liability for and payment of such additional amounts shall be the responsibility of the Construction Manager. 11. CONSTRUCTION MANAGER'S COMPENSATION A. The Construction Manager accepts and agrees that the Owner's limits of liability for the total project cost shall not exceed the GMP as may be amended and Construction Manager shall be compensated as follows: 1. For Pre-Construction Services the Construction Manager shall be paid a Fee of $ 75,000.00 for the Brazos County Exhibit Hall; Arenas, Stall Barns. A separate Preconstruction fee shall be paid for the Sheriffs Office Building in the amount of $25,000.00. Should either project be cancelled prior to the start of construction services, only these two amounts would be due by the Owner to the Construction Manager. Should one or both projects proceed to construction the above amount will be included in the project fee at 3.7% of the total construction cost. 12 Document p: 893250 Of C 2. For the General Conditions, the Construction Manager shall be paid amounts established by the GMP. If a particular line item has a surplus, that surplus shall be the property of the Construction Manager and may be used to offset overages in other line items. Upon final completion the Owner shall be entitled to 100% of any surplus. 3. Construction Manager fee is established at 3.7% of the total project construction amount. B. Retainage of 5% may be withheld on the cost of the Trade Contracts and Construction Manager fee but not on the General Conditions. 12. PROJECT RECORDS All of the Construction Manager's documentary work product under this Agreement shall be the property of the Owner. All records relating in any manner whatsoever to the Project, or any designated portion thereof, which are in the possession of the Construction Manager or the Construction Manager's consultants, shall be made available to the Owner for inspection and copying upon written request of the Owner. Additionally, said records shall be made available, upon request by the Owner, to any state, federal or other regulatory authorities and any such authority may review, inspect and copy such records. Said records include, but are not limited to, all plans, specifications, submittal, correspondence, minutes, memoranda, tape recordings, videos, or other writings or things which document the Project, its design, and its construction. Said records expressly include those documents reflecting the time expended by the Construction Manager and its personnel in performing the obligations of this Contract and the records of expenses incurred by the Construction Manager in its performance under said Contract. The Construction Manager shall maintain and protect these records for no less than three (3) years after final completion of the Project. Thereafter, the Construction Manager shall forward to Owner, upon written request, all plans, specifications, submittal, correspondence, minutes, memoranda, tape recordings, videos, or other writings or things which document the Project, its design, and its construction. Nothing herein shall deny Construction Manager the right to retain duplicates. 13. CHANGES A. The Owner, without invalidating the Contract, may order Changes in the Work of Individual Trade Contractors consisting of additions, deletions or other revisions. Such changes, if required by competent authority having jurisdiction over the work, which do not substantially alter the scope of the Project, and are not required due to the enactment or revision of codes, laws, or regulations subsequent to the preparation of bidding documents, shall be included in calculating the actual cost of construction and shall not result in an increase in the GMP or the Project Time Schedule. All Changes in the Work shall be authorized by a fully executed Supplemental Agreement hereto, or Change Orders in accordance with the Trade Contractor's Contract.. In this regard, all Trade Contracts shall contain a provision entitling Owner to make changes in the Plans and Specifications after performance has commenced, or to decrease or 13 D..tk: 893250 VOL ~4_PA&E aQ I_ increase the amount of Work to be performed or materials, equipment or supplies to be furnished. B. If the Owner elects to order a Change in the Work of an Individual Trade Contractor or Contractor(s), and such change is not being required by competent authority having jurisdiction over the work, the following procedures shall be used: 1. The Construction Manager shall provide an estimate of the cost of the change and the impact the change will have on the Project time schedule; 2. The Construction Manager shall provide an impact assessment of the change on the Project Budget and determine if funding is available within the Construction Contingency line item of the Project; 3. The value and/or completion date of the particular Trade Contractor(s) Contract(s) shall be amended by Change Order; 4. If the Change Order results in an increase in a Trade Contractor(s) contract, and funding is available from within the Construction Contingency line item of the Project Budget and if the Construction Manager agrees, then there shall be no increase in the GMP when the Change Order is executed; 5. If the Change Order results in an increase in a Trade Contractor(s) contract, and funding is NOT available from within the Construction Contingency line item of the Project Budget then there shall be an increase in the GMP and the Owner shall provide the required funding when the Change Order is executed; 6. If the Change Order results in a decrease in a Trade Contractor(s) contract, the excess funds will be moved to the Construction Contingency line item of the Project Budget; C. All Change Orders to this Agreement shall be specific and final as to prices and extensions of time. D. The Architect shall have authority to order minor Changes in the Work and to issue clarifications to the plans and specifications, within the Scope of Work not involving additional Cost of the Work or an extension of the Project Time Schedule and not inconsistent with the Contract Documents. Such Changes may be effected by Field Work Order or other agreed upon tool. Such Changes shall be binding on the Owner, the Trade Contractors and the Construction Manager, provided written notice and reasonable opportunity to object have been given. E. Construction Manager understands that proper review and authorization of Change Orders by the Owner's Governing Body will require an average of fourteen (14) days. Construction Manager shall fully appraise the Trade Contractors of this minimum processing requirement and that no claims for delay or additional Cost of the Work shall be recognizable based upon this minimum processing requirement. Allowances, if any, provided for in the Contract Documents shall be authorized only by duly adopted Change Orders, approved in accordance with this Agreement. 14 O cum nt p'. 893250 33 7 r g' 0A0 ~k F. If the Construction Manager wishes to make a claim for Additional Fee or an increase in the General Conditions, necessitating an increase in the GMP, it shall give the Owner written notice thereof prior to the occurrence of the event giving rise to such action, where practical. No such notification shall be valid unless so made and no increase shall be valid unless agreed to by Change Order prior to executing the work except in an emergency endangering life or property in which case the Change Order shall be negotiated and processed after the fact. 14. EMERGENCIES hi any emergency affecting the safety of persons or property, the Construction Manager shall act, at its discretion, to prevent threatened physical damage, injury or loss. The Construction Manager shall immediately notify the Project Manager when emergency situations arise that either result in the stoppage of work, injury of persons, loss of equipment, or damage to the "Work" itself. It is understood and agreed that one (1) of Construction Manager's primary duties is the anticipation and avoidance of potential claim situations. If the Construction Manager's actions in an emergency situation result in an increase in Project Schedule Time or cost, the Construction Manager may make a claim for additional compensation under the Changes Clause of this contract. 15. DISCOUNTS, REFUNDS, SALES OF SURPLUS MATERIALS, ETC. A. All discounts, if realized, for prompt payment shall belong to the Owner, if the Owner has made payment to the Construction Manager to qualify for such discount, and shall be accounted for in the applicable line item. All trade discounts, rebates and refunds, and all returns from sale of surplus materials and equipment, shall likewise accrue to the Cost of the Work, and the Construction Manager and Owner shall make provisions so that they can be secured, the amounts thereof to be accounted for in the applicable line item. B. The Owner qualifies for exemption from the state and local sales and use taxes, pursuant to the provisions of Section 151.309 of the Texas Limited Sales, Excise and Use Tax Act. Therefore, the Construction Manager shall not pay such taxes which would otherwise by payable in connection with the performance of this Contract as hereafter noted. C. The Construction Manager, on behalf of the Owner, shall issue an exemption certificate in lieu of the tax on the purchase, rental or lease of all materials, supplies, equipment and other tangible personal property incorporated into the real property being performed pursuant to the Contract with the Owner. D. Materials and supplies "used in the performance of a contract" include only those materials actually incorporated into the property being improved and those supplies directly used to incorporate such materials into the property being improved. Overhead supplies and supplies used indirectly or only incidental to the performance of the Contract with the Owner are not included in the exemption. 15 M .M N. 993250 -}7/ o3 E. Under "reasons said purchaser is claiming this exemption" in the exemption certificate, the Owner must name the project for which the equipment, material and supplies are being purchased, leased or rented. 16. APPLICATIONS FOR PAYMENT Except as modified by this Section, payments to Construction Manager shall be in accordance with Paragraph 11 of this Contract. A. The Construction Manager shall prepare and furnish to the Owner a monthly statement of the Work performed during the preceding month for which it claims it and the Construction Manager and Trade Contractors are entitled to be paid. This statement shall be in a form based upon a "Scheduling of Values" for Trade Contractors, as defined in the Trade Contractors Contract. Such statement may include the reasonable value of materials or equipment not yet incorporated in the Project but delivered, inspected and suitably stored at the site, or, with Owner's consent and subject to compliance with any conditions thereof, at some other location agreed upon. B. Each such statement shall include an amount for the Construction Manager's Fee for the Construction Phase computed on the basis of 100% of the amount earned for the statement period less 5% or retainage, plus the cost of the General Conditions once the first contract is awarded. The Construction Manager shall indicate the amount that each line item of the General Conditions is being billed when requesting payment for the General Conditions. C. The Construction Manager will require of the Trade Contractors that 5% of the amounts due under each Trade Contract shall be retained by the Owner until thirty (30) days after Final Completion of the Project under this Contract, except that upon mutual agreement by the Architect, Owner and Construction Manager, and with consent of the Construction Manager's and Trade Contractors, surety, payment in full shall be made to those Trade Contractors whose work is fully completed and accepted during the early stages of the Project, and/or those who have provided a maintenance bond or equivalent security for any remedial or corrective work, acceptable to the Owner and Construction Manager. D. The Owner will review the Construction Manager's statement of monies due to the Construction Manager and Trade Contractors and shall promptly, after receipt of same (but in no event longer than seven (7) days, issue a Certificate of Payment for such amounts as approved. The Owner shall promptly make payment (but in no event longer than thirty (30) days after certification by Owner) in the full amount to the Construction Manager for payment to the Trade Contractors. E. Final Payment, constituting the unpaid balance of the Cost of the Work, retainage due Trade Contractors, and the balance of the Construction Manager's Fee (including retainage and excluding any delay damages), shall be paid by the Owner to the Construction Manager for payment to the Trade Contractors thirty (30) days after Final Completion of the Project and acceptance by Owner. 16 Dacunrcnc p-. 893250 I Vol. ~4 PAGE 9.04 17. INSURANCE A. Without limiting any of the other obligations or liabilities of the Construction Manager during the term of this Contract, the Construction Manager shall purchase and maintain and insure that each trade contractor purchases and maintains the herein stipulated minimum insurance with companies duly approved to do business in the State of Texas and reasonably satisfactory to the Owner. Certificates of each policy shall be delivered to the Owner before any work is started, along with a written endorsement stating that said policy shall not be cancelled, non-renewed or materially changed without thirty (30) days advance written notice being given to the Construction Manager and Owner, except when the policy is being cancelled for nonpayment of a premium, in which case ten (10) days advance written notice is required. Prior to the effective date of cancellatiori, the Construction Manager must deliver to the Owner a replacement certificate of insurance or proof of reinstatement. Coverage shall be of the following types and not less than the specified amounts: 1. Worker's Compensation as required by Texas law, with the policy endorsed to provide a waiver of subrogation as to the Owner (and Construction Manager if Trade Contractor); Employer's liability insurance of not less than $1,000,000 for each accident, $1,000,000 disease for each employee, $1,000,000 disease policy limit; 2. Commercial General Liability insurance, including independent contractor's liability, completed operations and contractual liability, covering, but not limited to, the liability assumed under the indemnification provisions of this Contract, fully insuring Construction Manager's (or Trade Contractor's) liability for insurance to or death of Owner's employees and third parties, extended to include personal injury liability coverage with damage to property of third parties, within minimum limits as set forth below: a. General aggregate $ 1,000,000 b. Products-components/operations aggregate $ 1,000,000 C. Personal and advertising injury $ 600,000 d. Each occurrence $ 600,000 e. Fire damage (any one fire) $ 50,000 f. Medical expense (any one person) $ 5,000 The policy shall include coverage extended to apply to completed operations and XCU (explosion, collapse and underground) hazards. The completed operations coverage must be maintained for a minimum of one (1) year after final completion and acceptance of the work, with evidence of same filed with Owner. 3. Comprehensive Automobile and Truck Liability Insurance, covering owned, hired and non-owned vehicles, with a combined bodily injury and property damage minimum limit of $1,000,000.00 per occurrence; or separate limits of $500,000.00 for bodily injury (per person); $500,000.00 for bodily injury (per accident) and $100,000.00 for property damage. Such insurance shall include coverage for loading and unloading hazards. 17 Do ..t p: 893250 74 y at)5 B. Construction Manager shall obtain, pay for, and maintain at all times during the prosecution of the work under this Contract an Owner's protective liability insurance policy naming the Owner as additional insureds for property damage and bodily injury, which may arise in the prosecution of the work or Construction Manager" operations under this Contract. Coverage should be on an "occurrence" basis, and the policy shall be issued by the same insurance company that carries the Construction Manager's liability insurance with a combined bodily injury and property damage minimum limit of $500,000.00 per occurrence and $1,000,000.00 aggregate. C. Construction Manager shall obtain, pay for and maintain umbrella liability insurance during the Contract term, insuring Construction Manager for an amount of not less than $1,000,000 per each occurrence combined limit for bodily injury and property damage that follows from and applies in excess of the primary liability coverage required herein above. The policy shall provide "drop-down" coverage where underlying primary insurance coverage limits are insufficient or exhausted. Owner shall be named as additional insured. D. Builder's Risk Insurance shall be purchased and maintained by the Construction Manager, until the date of final acceptance of the work by the Owner, and for so long thereafter as Construction Manager shall be performing, or supervising, construction work at the jobsite, Builder's Risk Insurance covering the work at the site in an amount equal to 100% of the completed value. This insurance shall include the interest of the Owner, the Construction Manager, Trade Contractors, and Sub-Trade Contractors, and the work shall insure against the perils of fire, extended coverage, vandalism, and malicious mischief, and shall be extended to provide all "risk" protection, including freeze damage, as available, and for a coverage and wit deductibles not to exceed $5,000.00. Flood and earthquake deductible shall not exceed $5,000.00. Deductables shall be tracked a "Cost of Work" item in the Project Budget. E. 1. Each insurance policy to be furnished by Construction Manager or Trade Contractor shall include the following conditions by endorsement to the policy: a. Each policy shall name the Owner as an additional insured as to all applicable coverage: b. Each policy shall require that thirty (30) days prior to the cancellation, non-renewable, or any material change in coverage, a notice thereof shall be given to on or by certified mail. If the policy is cancelled for nonpayment of premium, only ten (10) days written notice to Owner is required. C. The Term "Owner" shall include all authorities, boards, bureaus, commissions, divisions, departments, and offices of the Owner and individual members, employees and agents thereof, in their official capacity and/or acting on behalf of the Owner; d. The policy phrase "other insurance" shall not apply to the Owner where the Owner is an additional insured on the policy; 18 D vin nl N. 893250 e. All provisions of the Contract concerning liability, duty, and standard of care, together with the Indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policy limits. 2. Insurance furnished by the Construction Manager or Trade Contractor shall be in accordance with the following requirements: a. Any policy submitted shall not be subject to limitations, conditions, or restrictions deemed inconsistent with the intent of the insurance requirements to the fulfilled by the Construction Manager; b. All policies are to be written through companies duly licensed to transact that class of insurance in the State of Texas; and C. All liability policies required herein shall be written "occurrence" basis coverage trigger. 3. Construction Manager agrees to the following: a. Construction Manager hereby waives subrogation rights for loss or damage to the extent same are covered by insurance. Insurers shall have no right of recovery or subrogation against the Owner, it being the intention that the insurance policies shall protect all parties to the Contract and be primary coverage for all losses covered by the policies; b. Companies issuing the insurance policies and the Construction Manager shall have no recourse against the Owner for payment of any premiums or assessments for any deductibles, as all such premiums and deductibles are the sole responsibility and risk of the Construction Manager, but this expense is to be carried with Project Budget; C. Approval, disapproval, or failure to act by the Owner regarding any insurance supplied by the Construction Manager shall not relieve the Construction Manager of full responsibility or liability for damages and accidents as set forth in the Contract Documents; and d. No special payment shall be made for any insurance that the Construction Manager and Trade Contractors are required to carry; all are included in the Contract Price and the Contract Unit Prices. F. Any of such insurance policy required under this Section may be written in combination with any of the others, where legally permitted, but none of the specified limits may be lowered thereby. 19 Woc .m N: 891250 74 t'tiut ae7 18. OWNER'S RIGHT TO TEMPORARILY SUSPEND WORK A. The Owner shall have the right by written order to temporarily suspend the work, in whole or in part, whenever, in the judgment of the Owner such temporary suspension is required: 1. In the interest of the Owner generally; 2. Due to government or judicial controls or orders which make performance of this Contract temporarily impossible or illegal; 3. To expedite the completion of a separate contract even though the completion of this particular Contract may be thereby delaying; 4. Because of weather conditions unsuitable for performance of the work; or 5. Because the Construction Manager is proceeding contrary to Contract provisions or has failed to correct conditions considered unsafe for workmen. B. The written order of the Owner to the Construction Manager shall state the reason for suspending the work and the anticipated periods for such suspension. Upon receipt of the Owner's written order, the Construction Manager shall suspend the work covered by the order and shall take such means and precautions as may be necessary to properly protect the finished and partially-finished work, the unused materials and uninstalled equipment, including the providing of suitable drainage about the work and erection of temporary structures where necessary. The Construction Manager shall not suspend the work without written direction from the Owner and shall proceed with new work promptly when notified by the Owner to resume operations. C. No additional compensation shall be paid to the Construction Manager for suspension or otherwise to the extent suspension is caused by default of the Construction Manager. To the extent such temporary suspension is not due to the fault of the Construction Manager, he shall be entitled to: 1. An equitable extension of working time for the completion of the work, not to exceed the delay caused by such temporary suspension; 2. The actual and necessary cost of properly protecting the finished and partially- finished work, unused materials and uninstalled equipment during the period of the ordered suspension such costs, if any, to be determined on a basis set forth in this Contract; and 3. Where the Construction Manager elects to remove equipment from the jobsite and then return it to the site when the work is ordered resumed, the actual and necessary costs of these moves. 4. Any and all General Condition expenses incurred. 20 Document M: 893250 -74 19. OWNER'S RIGHT TO TERMINATE; REMEDIES AND DELAYS A. The right to terminate this Agreement, in whole or in part, with or without cause, and for the convenience of the Owner is expressly reserved by Owner. In such event, Notice to Terminate, for all or any portion of the Work, shall be delivered to Construction Manager at least fourteen (14) business days prior to any such termination, who shall then be reimbursed by Owner in accordance with the terms and provisions of this Agreement, for all services completed, but not to exceed actual commitments and expenditures made and Fees carried in connection with the Work to the Date of Termination. No amount shall be due for lost or anticipated profits. All Work-related documents and records shall become the property of Owner, and shall be promptly delivered to Owner in a reasonably organized form without restriction on future use. Should Owner subsequently contract with a new construction manager for continuation of services on the Project, which right Owner specifically retains, Construction Manager shall cooperate in providing information. B. Nothing contained elsewhere in this Agreement shall require Owner to pay for services not in compliance with the provisions of this Agreement. The Owner may withhold payments to Construction Manager when Construction Manager is in default under this Agreement without waiving any other remedy or right available at law or in equity, including the right to bring legal action for damages or to force specific performance of this Agreement. C. All disputes arising out of performance of work, or other matters in question between Owner and Construction Manager shall be referred initially to the Owner's designated representative for decision, which shall be rendered within fourteen (14) business days of the date of receipt. The authority of the Owner's designated representative contained herein shall be deemed to be an independent covenant of the contract documents: 1. The decision of Owner's designated representative is a final decision. Decisions by the Owner's representative shall be final if not appealed within ten (10) business days of the issuance thereof. 2. In the event that any decision of the Owner's designated representative is inconsistent with the contract documents, or is not rendered within ten (10) business days, Construction Manager may appeal the decision to the County Commissioner's Court. D. Construction Manager understands that time is of the essence, and Construction Manager shall be fully responsible for its delays or for its failure to use its best efforts to accomplish the purposes of this Agreement. However, neither Owner nor Construction Manager, shall be deemed in violation of this Agreement for delays caused by circumstances beyond their respective control. E. If the Construction Manager wishes to make a claim for delay due to circumstances beyond their control, then the Construction Manager shall give notice to the Owner within seven (7) business days after commencement of the event(s) for which the Construction Manager wishes to make a claim for an extension of time. Such notice shall include the probable duration and a reasonable explanation and justification of the delay. The Construction Manager shall also 21 Document q. 893250 , , 1 r O provide within seven (7) business days stating the conclusion of any such delays. For delays caused by circumstances beyond the Construction Manager's control, the completion date shall be extended for causes which affect the critical path of performance and would logically require an extension of time necessary to complete the work, provided, however, in the event that such causes occur concurrently, the actual time of the delay shall be the time elapsed while such causes exist. The extension of any applicable completion date pursuant to the provisions of this section shall in no way relieve the Construction Manager of an obligation to make every reasonable effort (without incurring additional cost to Construction Manager) to reduce, or if possible, eliminate any delay to the Substantial or Final Completion. F. The following are considered circumstances which are beyond the control of the Construction Manager or Owner: 1. Acts of God (excepting normal climatic conditions as established by the National Weather Bureau's five-year (5-year) average for Brazos County, Texas); 2. Fire or other casualty not the result of negligence; 3. Unavoidable casualties, labor disputes, stoppage of the work by order of any court or other public authority through no act or fault of Construction Manager, anyone employed by Construction Manager, or Trade Contractor(s); 4. Acts or omissions of Owner, Owner's designated representative, or architect shall be beyond the Construction Manager's control. G. The work of any portion of the work under this Contract shall be suspended immediately subject to seven (7) days advanced written notice to the Construction Manager by the Owner declaring the Construction Manager to be in default and a reasonable opportunity to cure by Construction Manager. A copy of such notice shall be served on the Construction Manager's surety. The Contract may be terminated by the Owner for any good cause or causes, among others of which special reference is make to the following: 1. Failure of the Construction Manager to start the work within fourteen (14) days from date specified and the written work order issued by the Owner to begin work; 2. Substantial evidence that the progress of the work being made by the Construction Manager is insufficient to complete the work within the specified working time; 3. Failure of the Construction Manager to provide sufficient and proper equipment, materials, or construction forces for properly executing the work; 4. Substantial evidence that the Construction Manager has abandoned the work or discontinuance of the performance of the work or any part thereof and failure to resume performance within a reasonable time after notice to do so; 5. Substantial evidence that the Construction Manager has become insolvent, bankrupt, or otherwise financially unable to carry on the work; 22 D um nt # 893250 7N; ~'v, C l/o 6. Deliberate failure on the part of the Construction Manager to observe any requirements of the Contract specifications or to comply with any orders given by the Architect as provided for in the Contract Specifications; 7. Failure of the Construction Manager to promptly make good any defects in materials or workmanship, or any defects of any nature with respect to Construction Manager's work, the correction of which has been directed in writing by the Owner; 8. Substantial evidence of collusion for the purpose of illegally procuring a contract or perpetuating fraud on the Owner and the construction work under a contract; and 9. Repeated and flagrant violations of safe working procedures which are not cured within a reasonable period of time. H. After seven (7) days advanced written notice of Construction Manager by Owner and a reasonable opportunity to cure, the work is suspended for any of the causes itemized above, or any other just and reasonable cause or causes, the Construction Manager shall discontinue the work or such part thereof as the Owner shall designate, whereupon the surety may either at its option assume the Contract or that portion which the Owner has ordered the Construction Manager to discontinue and perform the same or, with the written consent of the Owner, sublet the same, provided, however, that the surety shall exercise its option within four (4) weeks after written notice to discontinue the work has been served upon the Construction Manager and upon the surety or its authorized agents. The surety in such event shall assume the Construction Manager's place in all respects and shall be paid by the Owner for all work performed by it in accordance with the terms of the Contract, but in no event shall such payment exceed the GMP, regardless of the cost to the surety to complete the work. 1. All monies remaining due the Construction Manager at the time of his default shall thereupon become due and payable to the surety and the Construction Manager as the work progresses, subject to all terms of the Contract. In case the surety does not, within the herein above specified time, exercise its obligation to assume the Contract or that portion thereof which the Owner has ordered the Construction Manager to discontinue, then the Owner shall have the power to complete, by contract or otherwise as it may determine, the work herein described or any such part thereof as it may deem necessary. J. The Construction Manager shall be entitled to an extension of working time under this Contract only when claim for such extension is submitted to the Owner in writing by the Construction Manager within fourteen (14) days from and after the time when any alleged causes of delay are reasonably ascertained by the Construction Manager, and then only when such time is approved by the Owner. In adjusting the Contract working time for the completion of the Contract, unforeseeable causes beyond the control and without the fault or negligence of the Construction Manager, if the progress of the Work is delayed at any time by any act or neglect attributable to Owner or Architect/Engineer, or of any employee of any of them, or of a separate contractor employed by any of them, or of any other person or entity for whom any of them may be legally liable, or by changes ordered in the Work, or by the action or inaction of any governmental agency or regulatory body (unless due to the fault or neglect of Construction Manager), or by labor disputes, fire, lightning, explosion, flood, earthquake, hurricane, unusually 23 Docum nt K. 893250 • I C I f 4 severe weather, unusual delay in deliveries, unavoidable casualties or other causes beyond Construction Manager's control and fault, or by delay authorized by Owner pending a dispute resolution, or by any other cause which Architect/Engineer or Owner determines may justify delay, then, to the extent the critical path of the Construction Schedule is impacted, the dates established above from Substantial Completion and Final Completion shall be equitably extended, and an equitable adjustment shall be made to the Initial Guaranteed Maximum Price or the GMP (as the case may be), including an equitable adjustment to the Construction Manager's Fee. K. If the satisfactory execution and completion of the Contract should require work and materials in greater amounts or quantities than those set forth in the Contract, requiring more time for completion than the anticipated time, then the Contract working time should be equitably increased. No allowances shall be made for delays or suspension of performances of the work due to the fault of the Construction Manager. 20. TERMINATION BY CONSTRUCTION MANAGER A. In the event the Construction Manager's Work is suspended or stopped in its entirety from no fault of the Construction Manager, the Trade Contractors or suppliers for a period twenty (20) days (continuously), the Construction Manager may terminate this Agreement and shall be compensated in such event as if termination by the Owner, pursuant to Paragraph 19. Notwithstanding the foregoing, the Construction Manager may not terminate the Agreement under this Article even if the Work is suspended or stopped in its entirety through no fault of the Construction Manager unless and until the Construction Manager has exercised reasonable diligence to cure the cause of such Work suspension or stoppage. B. If Owner fails to pay to Construction Manager any amount due it under this Agreement within thirty (30) days from the date such payment is due, Construction Manager may terminate this Agreement and Construction Manager shall be compensated as provided in Paragraph 19. In the event of such nonpayment by Owner for a period thirty (30) days, Construction Manager shall given written notice to Owner at least fourteen (14) business days prior to any such termination. If Owner cures such default within fourteen (14) business days from the date of notice, Construction Manager shall not have the right to terminate this Agreement pursuant to this provision. This Article shall not be construed to allow the Construction Manager to terminate the Agreement where the Owner has failed to pay the Construction Manager pursuant to the Owner's right to refuse or withhold payment as established in this contract. 21. ASSIGNMENT, GOVERNING LAW, VENUE AND NOTICES A. This Contract shall be binding on the parties hereto, their successors, assigns and representatives. Neither Party shall assign any interest in this Agreement without the written consent of the other. 24 Document N'. 893250 .~i l B. This Contract shall be governed by and construed solely in decision of the State of Texas. C. This Contract shall be construed according to the laws of Texas; and Rockwall County, Texas, shall be the exclusive venue for any litigation involving this Contract; D. All written notices to Owner by Construction Manager shall be addressed to: Ms. Pat Howard County Purchasing Agent BRAZOS COUNTY 300 East 26th Street, Suite 117 Bryan, Texas 77803 Notice permitted or required by this Contract, shall be in writing and shall be deemed received when received in person or when placed, postage prepaid, in the United States mail, certified return receipt requested, and addressed to the part at the address set forth opposite their signature below. Either party may designate from time to time another and different address for receipt of notice by giving notice of such change of address. E. All written notices from Owner to Construction Manager shall be addressed as follows: Mr. Monte Thurmond, Vice President Hunt Construction Group, hic. 4099 McEwen, Suite 400 Dallas, Texas 75244 F. In the performance of this Agreement, Construction Manager shall occupy the status of an Independent Contractor, performing all Work without immediate direction or supervision by Owner. No provision of this Agreement shall be construed as making Construction Manager as agent of Owner. G. Paragraph headings are for convenience only and are not intended to expand or restrict the scope or substance of the provisions of this Contract. H. Should any term, covenant, condition, sentence, or paragraph of this Contract be found illegal, invalid, or unenforceable for any reason, such illegal, invalid, or unenforceable provision shall be severed from the remainder of this Contract and shall not affect the legality, validity, or enforceability of the remaining terms, covenants, conditions, sentences, or paragraphs of this Contract. 1. This Contract represents the entire agreement between the parties hereto, superseding all oral or written previous and contemporaneous agreements between the parties and relating to the matters in this Contract, and except as provided herein cannot be modified without written agreement of the parties to be attached to and made a part of this Contract. 25 D umcnt p: 993250 c'74 ern a13 J. All parties represent that they have full capacity and authority to grant all rights and assume all obligations that they have granted and assumed under this Contract. 22. COMPLIANCE WITH LAWS, NONDISCRIMINATION AND FEDERAL FUNDS A. The Construction Manager, its officers, consultants, agents, employees and the Trade Contractors shall comply with all applicable federal and state laws, and Ordinances of the County of Brazos, Texas, as amended, and with all applicable rules and regulations promulgated by all local, state and national boards, bureaus and agencies. B. As a condition of this Agreement, Construction Manager hereby covenants that it will take all necessary action.to ensure that, in connection with any Work under this Contract, it will not discriminate in the treatment or employment of any individual or groups of individuals on the grounds of race, color, religion, national origin, age, sex, or handicap unrelated to job performance, either directly or indirectly or through contractual or other arrangements. In this regard, Construction Manager shall keep, retain and safeguard all records relating to this Agreement or Work performed hereunder for a minimum period of three (3) years from final Contract completion, full access allowed to authorized representatives of the City upon request of purpose of evaluating compliance with this and other provisions of the Agreement. C. In the event Owner receives funds from any federal agency to be utilized in construction of the Project, Owner shall notify Construction Manager of any terms, requirements, conditions or restrictions attached to the use of said funds. Thereafter, Construction Manager shall assist Owner in notifying all affected bidders and/or contractors/ Trade Contractors, and will include, to the extent necessary, all federal requirements as a part of each and every bid package on the federally funded portion of the Project. Construction Manager shall also comply with any applicable requirement and assist Owner with assembling the documents necessary to evidence compliance by each affected bidder or contractor/Trade Contractor. 23. RESPONSIBILITY FOR WORK; INDEMNIFICATION A. Approval by the Owner shall not constitute nor be deemed a release of the responsibility and liability of Construction manager, its employees, the Trade Contractors, agents or consultants, for the accuracy and competency of their services; nor shall such approval be deemed to be an assumption of such responsibility by the Owner for any defect, error or omission in the Work product prepared by Construction Manager, its employees, the Trade Contractors, agents or consultants. B. To the fullest extent permitted by law, Construction Manager shall indemnify, defend and hold harmless the Owner, its officers, agents or employees, its consultants, officers, agents or employees, from and against all claims, damages, losses, suits and actions, including, but not limited to, court costs and attorney fees, brought for or on account of any injuries, including death, or damages received or sustained by any person, persons or property on account of, arising out of or in connection with the Work performed by the Construction Manager, its agents and 26 Document p: 993250 .k;L 74 s. ill."a~ employees or the Trade Contractors or any suppliers; or on account of any negligent act or omission of the Construction Manager, its agents and employees or the Trade Contractors or any suppliers in the performance of this Contract, any Trade Contractor(s) for this Project, or any supplier contract(s) for this Project; or on account of the failure of the Construction Manager or Trade Contractor to provide the necessary barricades, warning lights or signs and the Construction Manager shall be required to pay any judgment, with costs, including attorney fees, which may be obtained against the Owner, its officers, agents or employees growing out of such injury, including death, or damage. The obligation of the Construction Manager under this clause shall not extend to the liability of the Architect, its consultants, agents or employees arising out of (1) the preparation 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 Architect, its consultants, agents or employees, provided such giving or failure to give is the primary cause of the injury or damage. All Trade Contracts shall contain a similar indemnification clause which shall include the Construction Manager as an indemnitee. The provisions of this Paragraphs are solely for the benefit of the Owner and Construction Manager and not intended to create or grant any rights, Contractual or otherwise, to any other person or entity except as is expressly set forth within this Section. C. It is expressly agreed and understood by Owner and Construction Manager that any and all costs associated with the Owner's efforts in litigation or otherwise resisting claims or liabilities as identified in (B) above shall be borne, from the inception, by Construction Manager. It is further expressly agreed and understood by Owner and Construction Manager that County shall have the right to select its counsel in any action which requires counsel. The parties hereto agree and understand that the intent of the parties is that the County shall not incur costs or expenses in litigating or resisting claims as identified in (B) above. 24. FINANCIAL INTEREST PROHIBITED. CONFIDENTIALITY A. Construction Manager covenants and represents that Construction Manager, its officers, employees, agents, and consultants will have no financial interest, direct or indirect, in product materials or equipment that will be specified for the construction of the Project. 25. PERFORMANCE AND PAYMENT BONDS A. With the execution and delivery of the Contract, the Construction Manager shall furnish and file with the Owner in the amounts herein required, the surety bonds specified hereunder. Such surety bonds shall be in accordance with the provisions of the TEXAS GOVERNMENT CODE § 2253.0001 et seq, Art. 7.19-1 of the TEXAS INSURANCE CODE and § 53.201 et seq. Of the TEXAS PROPERTY CODE and shall be issued by such sureties as are named in the current list of "Companies Holding Certificates of Authority as Acceptable Sureties on the Federal Bonds and as Acceptable Reinsuring Companies" as published in Circular 570 (amended) by the Financial Management Service, Surety Bond Branch, U.S. Department of the Treasury. These bonds shall automatically be increased by the amount of any change order or supplemental agreement which increases the Contract amount with or without notice to the surety, but in no event shall a change which reduces the Contract amount reduce the penal 27 Wcum nt 0 993250 amount of such bonds. If the surety on any Bond furnished by the Construction Manager is declared bankrupt or becomes insolvent or its right to do business is terminated or ceases to meet the requirement as set forth above, Construction Manager shall within 20 days thereafter substitute another Bond or surety which complies with the requirement hereto. 1. Performance Bond. A good and sufficient bond in an amount not less than the contract sum, 100% of the GMP guaranteeing and as security for the full and faithful execution of the work and performance of the Contract in accordance with the plans, specifications, and Contract documents, including any extensions thereof, for the protection of the Owner. This bond shall also provide for the repair and/or replacement of all defects due to faulty materials and workmanship that appear or become known within a period of one year from the date of completion and acceptance of the improvement by the Owner or such lesser or greater period as may be designated in the Contract Documents. 2. Pa nMent Bond. A good and sufficient bond in an amount not less than 100% of the approximate total amount of the Contract, as evidenced by the proposed tabulation guaranteeing and as security for the full and proper protection of all claimants supplying labor and materials in the prosecution of the work provided for in said Contract and for use of such claimant. This bond shall remain in effect at least until one year after the date when final payment becomes due for all materials and labor supplied in the prosecution of the work provided in said Contract. 3. Sureties. No sureties shall be accepted by the Owner who is now in default or delinquent on any bonds or who has interest in any litigation against the Owner. All bonds shall be made and shall be executed by not less than one corporate surety authorized to do business in the State of Texas and acceptable to the Owner. The sureties shall be listed in the most current federal register treasury list. Each bond shall be executed by the Construction Manager and surety. 4. Additional or Substitute Bonds. If at any time the Owner is or becomes reasonably dissatisfied with any surety of a performance or payment bond, the Construction Manager shall, within twenty (20) days after notice from the Owner to do so, substitute an acceptable bond or bonds, or provide any additional bond, and such form and sum and signed by such other surety or sureties as may be reasonably satisfactory to the Owner. The premiums on such bond shall be paid by the Construction Manager and the premiums for all bonds shall be included in the GMP as a cost of the Work. 26. HAZARDOUS MATERIALS It is understood and agreed that the general conditions do not contemplate the handling of, responsibility for the discovery of, or the performance of services by the Construction Manager related to the abatement, replacement or removal of products or processes involving asbestos or hazardous waste in any of its forms as defined by the EPA. If such products or wastes are present, the Owner shall retain and pay for specialists required to perform services to specify and supervise abatement, replacement or removal procedures. The Construction Manager shall carry on the work and maintenance progress where not hampered by the 28 O um nt 0. 891250 M1^r abatement process as agreed by the Owner while the specialists are performing such abatement, replacement, or removal procedures, unless otherwise prohibited by law. The Construction Manager has the obligation to require all Trade Contractors to agree to comply with all applicable laws relating to hazardous materials or known hazardous waste. Subject to this obligation, the Owner agrees to be responsible to the Construction Manager for all claims, lawsuits, expenses or damages arising from or related to the exposure, handling, use, treatment, purchase, sale, storage or disposal of asbestos, asbestos products or any hazardous waste, in any of its various forms as defined by the EPA provided that such waste is not generated by the Construction Manager or Trade Contractor(s) during the construction of the Project. This responsibility to the Construction Manager shall survive the completion of the Project, the work administered under these general conditions and the general conditions themselves unless claims or lawsuits are caused solely by the negligent act of the Construction Manager or Trade Contractor(s) in providing the contacting [sic] services. Construction Manager agrees not to knowingly recommend any products containing asbestos for inclusion in this Project. If Construction Manager shall be delayed by the supervision, abatement, removal of any hazardous wastes or materials, Owner agrees that the time of the completion of the work shall be extended for a period equal to the reasonably estimated period of delay, as determined by agreement between the Construction Manager and the Owner. 27. ARCHITECT The Parties hereto understand and acknowledge the Architect's responsibilities for the Project are more fully set forth in separate contracts between the Owner and the Architect. IN WITNESS WHEREOF, Owner has caused this Agreement to be signed in its corporate name by the duly authorized to execute the same in its behalf by the Owner, and Construction Manager has signed by and through its duly authorized representative, thereby binding the parties hereto, their successors, assigns and representatives for the faithful and full performance of the terms and provisions hereto. EXECUTED this ` 31 day of Ocr 2005. HUNT CONSTRUCTION GROUP, INC. By: Its Authorized Agent BR By 29 Document K'. 893M tt, a~~ Brazos County Courthouse 300 E. 26th, Suite 313 Bryan, Texas 77803 ACKNOWLEDGED: DATE: November 7, 2005 ZJ4 D dy Sims, County Judge TO: Hon. Randy Sims, County Judge Hon. Lloyd Wassermann, Commissioner Hon. Duane Peters, Commissioner Hon. Kenny Mallard, Commissioner Hon. Carey Couley, Commissioner Candy Gallego, Administrative Assistant FROM: Kay Hamilton, County Treasurer RE: Quarter Ending 09/30/2005 Investment Report w ~Q date This report is made in accordance with provisions of Gov.Code 2256, The Public Funds Investment Act, which requires quarterly reporting of investment transactions to the Commissioners' Court. The Brazos County Investment portfolio earned an average yield of 3.4372% on funds invested with TexPool for the quarter ending 09/30/2005. Investment interest deposited during the quarter was $86,926.34. The total investment interest earned year-to-date utilizing TexPool was $268,242.98. On September 28, 2005, $5,000,000.00 of principal was withdrawn from TexPool leaving a year-end balance of $5,275,218.59. The average Earnings Credit Rate on CitiBank, formerly First American Bank, checking account interest during the past quarter was 3.82% netting $396,133.23 of interest at quarter end. Year-to-date checking account interest was $1,311,387.22. Combined interest total earned at year-end was $1,579,630.20. The weighted average maturity of the invested funds was 1 day due to the liquidity of funds invested with TexPool and on deposit at CitiBank. At the end of the third quarter of 2005, yields from various investment products were as follows CitiBank accounts TexPool Agencies of the Federal Govt Commercial Paper Treasury Bills 3.99% daily liquidity 105% collateralized 3.60% daily liquidity 4.15% 6-month maturity 4.5% 12-month maturity - monthly callable 3.74% 3-month maturity 3.49% 3-month maturity 3.82% 6-month maturity 4.15% 2-year The investment opportunities available to Brazos County that would exceed the rate being earned on the CitiBank accounts have maturity dates in the 6-month to 12-month range and are not collateralized. Purchasing agencies in that range would present a maturity risk with little, if any, justifying reward. The depository contract provides a rate that adjusts as rates increase - 3- month Treasury rate + 55 basis points - which continues to produces a competitive rate with the least amount of risk of loss of principal (105% collateralized) as well as the least amount of maturity risk (daily liquidity). There has been a slight upward shift in the yield curve in response to the Fed's rate hike; however, it remains relatively flat. The Fed is expected to raise rates continually over the balance of this year and into 2006. Accordingly, the investment strategy for Brazos County remains unchanged with a concentration of County funds in the Brazos County depository. ° al g 74 Summary of Portfolio Changes Fund Group 1 Beginning Book Value (06/30/2005) $10,188,292.25 Beginning Market Value (06/30/2005) $10,188,292.25 WAM at Beginning Date 1 Day TexPool Release of Principal 5,000,000.00) TexPool Interest Earned $ 86,926.34 Ending Book Value (09/30/2005) $ 5,275,218.59 Ending Market Value (09/30/2005) $ 5,275,218.59 WAM at Ending Date 1 Day * TexPool Net Asset Value is 0.99985 Investment interest deposited: Checking Account Interest Earned: October 2004 $ 14,557.80 (1.7805%) $ 62,896.20 (2.27%) November 2004 $ 15,230.98 (1.8491%) $ 65,456.92 (2.61%) December 2004 $ 17.632.51 (2.0685%) $ 73.353.94 (2.74%) Q/E 12/31/04 $47,421.29 $201,707.06 January 2005 $ 19,063.91 (2.2325%) $ 103,306.97 (2.89%) February 2005 $ 18,859.99 (2.4406%) $ 112,721.31 (3.09%) March 2005 $ 22.036.09 (2.5708%) $ 127,282.34 (3.29%) Q/E 03/31/05 $59,959.99 $343,310.62 April 2005 $ 22,936.72 (2.7591%) $ 122,120.30 (3.31%) May 2005 $ 25,453.22 (2.9563%) $ 125,443.20 (3.40%) June 2005 $ 25.545.42 (3.0583%) $ 122.672.81 (3.50%) Q/E 06/30/05 $73,935.36 $370,236.31 July 2005 $ 28,189.00 (3.2577%) $ 137,585.22 (3.70%) August 2005 $ 29,946.02 (3.4512%) $ 132,967.29 (3.77%) September 2005 $ 28.796.32 (3.6028%) $ 125.580.72 (3.99%) Q/E 09/30/05 $ 86,926.34 $396,133.23 YTD TOTALS $268,242.98 $1,311,387.22 Attached are the following reports: 1) Quarterly Invested Funds Activity Report 2) TexPool Investments 3) Cost Amount Summary of Investment 4) Investment by Fund Group and Strategy Type To the best of our knowledge the investment portfolio in this report conforms in all respects to the Investment Policy of Brazos County and is being managed under the investment strategy of said policy as approved by the Commissioner's Court of Brazos County. KWy Hami n, County Treasurer i%/o-k/,o5 Date Q t 0 Dr erri White, Chief Deputy Treasurer Date 7A f' r ?s QUARTER ENDING 09/30/2005 INVESTED FUNDS ACTIVITY REPORT T aao r 4 FUND 1 - POOLED FUND GROUP ~ I , 74 ' TEXPOOL INVESTMENTS (OCT.2004-SEPT.2005) CD V) C6 4a LO Lf) W 00 Cl) M (h V O LO (O O Cl) fl- (f) tl N N m 00 O N (`7 U!~ Vy N (L ° d ° a o o N N N N ~ d H d ~ C d ` U m d y V1 o O O % W U U oqaa INVESTMENTS BY FUND GROUP AND STRATEGY TYPE FUND 1- POOLED FUND GROUP General Fund $ Health Endowment Fund $ State Lateral Road $ Courthouse Security $ Voter Registration $ Vehicle Inventory Tax Interest $ General Obligation Debt Svc. $ General Permanent Impv. $ - Exposition Center Fund $ 2,055,353.85 C.O. Issue 2003 $ 3,137,765.35 C.O. Issue 2004 $ 82,100.39 BOOK VALUE OF ALL INVESTED FUNDS FOR SEPTEMBER 2005 $ 5,275,219.59 ~ I.74 PAGE aa3