HomeMy WebLinkAboutMinutes Port Of Corpus Christi Authority Of Nueces County, Tx - 04/16/2019 OFFICIAL MINUTES OF PORT COMMISSION MEETING
April 16, 2019
The Port Commissioners of the Port of Corpus Christi Authority convened at the
Solomon P. Ortiz International Center, 402 Harbor Drive, Corpus Christi, Texas, on
Tuesday, April 16, 2019 at 9:00 a.m., for the regular monthly meeting of the Port
Commission.
Present: Mr. Charles Zahn
Mr. David P. Engel
Mr. Richard Valls
Mr. Richard L. Bowers
Mr. Wes Hoskins
Mr. Wayne Squires
Ms. Catherine Hilliard
Present: Mr. Sean Strawbridge
Mr. Omar Garcia
Mr. Jarl Pedersen
Mr. Clark Robertson
Mr. Kent Britton
Ms. Rosie Collin
Chief Eric Giannamore
Ms. Lynn Angerstein
Mr. Bland Chamberlain
Mr. Russell Cordo
Ms. Sherry DuBois
Mr. Matt Garcia
Mr. Dan Koesema
Ms. Tara Perry
Ms. Audre Debler
Ms. Sharon Richardson
Ms. Ebony Lotts
Ms. Leslie Ruta
Mr. Jeff Starks
Mr. Bennie Benavides
Ms. Tana Neighbors
Mr. Javier Davila
Ms. Donna James Spruce
Ms. Adrianna Escamilla
Ms. Martha Valderrama
Others Present: Mr. Leo J. Welder, Jr.
Mr. Dane Bruun
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Others Present: Mr. Foster Edwards
San Patricio EDC
Mr. Craig P. Illnusly
Wood
Ms. Bianca Hernandez
San Patricio County A&H
Ms. Madelynne Hernandez
San Patricio County A&H
Ms. Alexia Rodriguez
San Patricio County A&H
Ms. Joann Ehmann
City IOB
Mr. Bobby Nedbalok
San Patricio County &Aransas A&H
Ms. Megan Glidden
Aransas Agrilife Extension
Ms. Ginger Easton Smith
Aransas Agrilife Extension
Mr. John Green
City of Portland Councilman
Mr. Niels Aalund
WGMA
Mr. Terry Arnold
Mr. David Cave
CITGO
Mr. Thomas Yardley
City of Portland
Mr. Foster Edwards
San Patricio EDC
Mr. Thomas Made
Ms. Michelle Morlan
Mr. Joe Guzman
South Texas Military Task Force
Mr. Larry Perryman
Bay-Houston Towing Co.
Mr. Tom Moore
Consultant
Mr. Xavier Valverde, Sr.
G&H Towing Co.
Mr. Robert Cropeza
Del Richardson &Assoc.
Mr. Frank Jordan II
Del Richardson &Assoc.
Mr. Dionisio Marquez
DRA Inc.
Mr. Manny Fall
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Coonrod Electric
Mr. W. Goldston
ACEL
Mr. Oscar Rivera
Sheriff, San Patricio Co.
Mr. John Williams
Aransas-Corpus Christi Pilots
Ms. Jalyn Stineman
Del Mar College
Ms. Brigid Cook
Collier, Johnson & Woods
Ms. Nancy Zuniga
MDR
Mr. Paul Swetish
RTFC
Mr. Mike Kershaw
Port/Pilot Liaison
Mr. Roger TenNapel
FHR
Mr. Keith Smith
Gulf Compress
Ms. Debra Barrett
San Patricio Drainage District
Mr. Joelle Francois
AECOM
Ms. Darcy Schroder
Valero
Ms. Tricia Arther
Buc Days
Ms. Mariella Dujaho
D RA
Ms. Monna Lytle
Ms. Barbara Major
Mr. Kevin Monaco
Aransas-Corpus Christi Pilots
Mr. Helmut Schwarz
Voestalpine Texas
Mr. Bob Paulison
PICC
Mr. Kevin Gibson
Signet Maritime
Mr. Oscar Palacios
Ms. Shalane Purkerton
NCJLS
Mr. Gary Moore
San Patricio County Commissioner
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1. Meeting called to order
2. Safety briefing presented
3. Pledge of Allegiance recited
4. Invocation given
5. Conflict of Interest Affidavits: None were received.
Point of Order: Chairman Zahn pointed out that some of the supporting materials
for items on this agenda were delivered to the Commissioners after the deadline
stated in the Commission's Operating Rules. On motion made by Mr. Squires and
seconded by Mr. Bowers, the Commission agreed to consider all the agenda items.
6. Minutes
6a. Action: On motion made by Mr. Valls and seconded by Mr. Bowers, the
Commission approved the minutes of the March 19 and 28, 2019 Commission
meetings in the form presented to the meeting.
7. Public Comment —
8. Committee Reports
8a. Audit Committee Report: Mr. Squires reported on the committee's
activities since the last regular Commission meeting.
8b. Long-Range Planning Committee: Mr. Valls reported on the committee's
activities since the last regular Commission meeting.
8c. Security Committee: Mr. Hoskins reported on the committee's activities
since the last regular Commission meeting.
8d. Office Building Committee: Mr. Bowers reported on the committee's
activities since the last regular Commission meeting.
9. Presentations
9a. On motion made by Mr. Valls and seconded by Mr. Hoskins, the
Commission adopted the following Resolution of Appreciation for retiring San
Patricio County Sheriff Leroy Moody.
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RESOLUTION OF APPRECIATION FOR
SAN PATRICIO COUNTY SHERIFF
LEROY MOODY
WHEREAS, Charles Leroy Moody honorably served as Sheriff of San Patricio
County, thereby serving the Coastal Bend, Port of Corpus Christi Authority, and the State
of Texas for 30 years, culminating with his retirement on March 31, 2019. Sheriff Moody
has served the citizens as a law enforcement officer for a total of 54 years.
WHEREAS, Sheriff Moody served our United States of America in the U.S. Army,
receiving an Honorable Discharge in 1965. Upon graduating from Taft High School in
1958, Sheriff Moody began his career in law enforcement, working for the City of Sinton
and San Patricio County as a dispatcher. He was appointed Deputy Sheriff and, after 11
years of outstanding service was appointed as Chief Deputy. Sheriff Moody was elected
to office in 1988 and has been re-elected seven consecutive times.
WHEREAS, Sheriff Moody has held the office of President of the Sheriff's
Association of Texas, served as a member of the Coastal Bend Peace Officers
Association, served as Chairman of the Emergency Communication Committee for the
Coastal Bend Council of Governments, served as Chairman of the Homeland Defense
Committee, is a longstanding member of the Coastal Bend Local Emergency Planning
Committee, Sinton Lion's Club and other organizations. Sheriff Moody has been and will
remain a servant leader for our Nation, State, and our local communities with the same
honor and integrity in which he has lived his life.
WHEREAS, Sheriff Moody has been honored with distinguished awards, including
the Tom Tellepsen Award from the Sheriff's Association of Texas. This highest of awards
honored Sheriff Moody for more than just his ability and performance, as Sheriff Moody
has dutifully "demonstrated the human element that engraves his name in the hearts of
all the law enforcement community, and a genuine love of the profession." Sheriff Moody
is also the recipient of the `Humanitarian of the Year' award by the Sinton Chamber of
Commerce.
WHEREAS, Sheriff Moody has been a consistent supporter and partner of the Port
of Corpus Christi Authority's layered security posture through his leadership, guidance
and support to the Port Police Department, U.S. Coast Guard Sector Corpus Christi, and
the Federal Bureau of Investigation Joint Terrorism Task Force.
NOW THEREFORE BE IT RESOLVED, that the Port Commission of the Port of
Corpus Christi Authority of Nueces County, for itself and on behalf of Port staff and the
Port community, expresses its sincere gratitude and appreciation to Sheriff Charles Leroy
Moody. Sheriff Moody's sacrifices and exemplary service are noted by a grateful
community. The Port of Corpus Christi Authority offers warmest wishes to Sheriff Moody
and his wife, Lisa. May they enjoy a well-earned and well-deserved retirement; and
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BE IT FURTHER RESOLVED that this resolution be made a part of the permanent
minutes of this Port Commission, this 16th day of April 2019, and that a signed original of
this Resolution be furnished to Sheriff Charles Leroy Moody.
9b. The Commission received a presentation on the Buc Days Program from
Johnny Philipello, President/CEO, Buccaneer Commission.
9c. The Commission received an update on the Corpus Christi Ship Channel
Improvement Project from Mr. Charles Brittingham, Cassidy &Associates.
9d. The Commissioners received a presentation from Del Richardson &
Associates on the Hillcrest-Washington Coles Neighborhood Voluntary Real
Estate Acquisition and Relocation Program.
9e. The Commission received a presentation on the Port of Corpus Christi's
youth support for Nueces Junior Livestock Show and San Patricio/Aransas
Counties Agriculture & Homemakers Show.
9f. The Commission received a briefing on the Ad Hoc Emergency Response
subcommittee objectives from Commander Rocha.
10. Open Agenda
10a. Use of Federal Funds for Maintenance Dredging at PCCA Docks: Staff
recommended approval to direct the U.S. Army Corps of Engineers to use an
amount not to exceed $2,820,500 in federal funds provided under Section 2106 of
the Water Resources Reform and Development Act of 2014 for maintenance
dredging of PCCA docks included in the USACE's 2019 Maintenance Dredging of
the Corpus Christi Ship Channel.
Action: On motion made by Mr. Valls and seconded by Mr. Squires the
Commission approved Staff's recommendation.
10b. Payment to U.S.Army Corps of Engineers to Increase Dredge Material
Placement Area No. 10 Capacity: Staff recommended approval of payment to
the U.S. Army Corps of Engineers in an amount not to exceed $3,146,600 for
PCCA's costs associated with the U.S. Army Corps of Engineers engineering,
design, and construction for a contract to increase dredge material placement area
capacity for the federal channel and for PCCA and customer use at Dredge
Material Placement Area 10.
Action: On motion made by Mr. Valls and seconded by Mr. Squires, the
Commission approved Staff's recommendation.
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10c. Construction Contract to Russell Marine LLC for the La Quinta Aquatic
Habitat Protection Berm and Offshore Emergent Levee Repairs Proiect: Staff
recommended award of a construction contract in the amount of $950,657 to
Russell Marine LLC, the lowest and best bidder for the Base Bid for the La Quinta
Aquatic Habitat Protection Berm and Offshore Emergent Levee Repairs Project.
Staff further recommended that the Director of Engineering Services be granted a
6% contingency ($57,039.42) in accordance with the PCCA's standard
contingency guidelines for marine and rehabilitation projects. Therefore, the total
possible construction contract cost for this project based on Staff's
recommendation is $1,007,696.
Action: On motion made by Mr. Squires and seconded by Mr. Valls, the
Commission approved Staff's recommendation.
10d. Third and Final Readinq of a Franchise Agreement with South Texas
Gateway Terminal LLC: Staff recommended approval of the third and final
reading of a Franchise Agreement granting South Texas Gateway Terminal, LLC
("STGT"), (i) the right to construct, dredge, maintain, use and operate docks and
berths and related breasting and mooring structures and approach and access
areas on the portions of PCCA's submerged land described in the Franchise
Agreement, (ii) the right to access the Corpus Christi Ship Channel and the Gulf
Intracoastal Waterway from STGT`s property in San Patricio County adjacent to
these channels and the STGT docks constructed on PCCA's submerged land, and
(iii) related rights.
Action: On motion made by Mr. Valls and seconded by Mr. Squires, the
Commission approved Staff's recommendation.
10e. 2018 Comprehensive Annual Financial Report (CAFR): The PCCA
Comprehensive Annual Financial Report for the year ended December 31, 2018
("CAFR") was presented to the Commission for approval. The following reports to
the Commission were included in the CAFR in connection with Collier, Johnson &
Woods' audit of the financial statements in the CAFR:
• Independent Auditor's Report dated April 9, 2019, which said "In our
opinion, the financial statements [in the CAFR] present fairly, in all material
respects, the financial position of the Port of Corpus Christi Authority as of
December 31, 2018, and the respective changes in financial position and
cash flows for the year then ended in accordance with accounting principles
generally accepted in the United States of America."
• Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and other matters based on an Audit of Financial
Statements performed in accordance with Government Auditing Standards
dated April 9, 2019, which said (i) "during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses,"
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and (ii) "the results of our tests disclosed no instances of noncompliance
that are required to be reported under Government Accounting Standards."
• Independent Auditor's Report of Compliance for each Major State Program
dated April 9, 2019 which said, "In our opinion, the Port of Corpus Christi
Authority complied, in all material respects, with the types of compliance
requirements that could have a direct and material effect on each of its
major state programs for the year ended December 31, 2018."
The Audit Committee recommended approval of PCCA's 2018 Comprehensive
Annual Financial Report and acceptance of the auditor's reports.
Action: On motion made by Mr. Engel and seconded by Mr. Squires the
Commission approved the 2018 CAFR and accepted the auditor's reports.
10f. Port of Corpus Christi Policy Updates in Operating Procedures,
Standards of Conduct, Budget Transparency, and Ethics Guidelines:
Executive Session: The Chairman announced that this agenda item would
be deliberated in Executive Session before any action would be taken on it in Open
Session.
10g. Pipeline Easement with Cactus 11 Pipeline L.L.C.: The CEO announced
that the following item was not ready for discussion at this meeting: Approve a
Pipeline Easement with Cactus II Pipeline LLC., for a 26-inch Crude Oil and Crude
Oil Condensate Pipeline crossing the Port of Corpus Christi Authority's Land
Located at the Tule Lake Dredge Material Placement Area Heading in a Northly
Direction Across the Nueces Bay, Nueces County, Texas.
11. Consent Agenda: Individual Commissioners requested that Consent
Agenda Items 11a and 11g be considered separately. Then Mr. Valls moved the
approval of the remaining Consent Agenda Items by one vote (the "Consent
Agenda Motion"), in accordance with the respective staff recommendations and
agreements furnished to the Commission at the meeting. Ms. Hilliard seconded
the motion and the motion passed without objection.
11a. The Chairman announced that the following agenda item would be
deliberated in the Executive Session before any action would be taken on it in
Open Session: Ratify a Lease Agreement for up to 50 years with Lone Star Ports,
LLC (a joint venture involving The Carlyle Group and Berry Lone Star Ports, LLC)
for land on Harbor Island related to marine terminal and associated facilities.
11 b. By approval of the Consent Agenda Motion, the Commission approved an
Easement and Right of Way with AEP Texas, Inc. for electric service to NuStar
Logistics, LP 9.36-acre facility located on the south side of the Joe Fulton Corridor
and the east side of Sigmor Road, Nueces County, Texas.
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11c. By approval of the Consent Agenda Motion, the Commission approved a
Net Deductive Change Order in an amount of ($23,148) with Bartlett Cocke
Beecroft, A joint venture for the New Port Office Facility. The Commission also
approved an adjusted allowance to expend up to an additional $45,211 (difference
between $23 million and current proposed contract amount of $22,954,789) on
items or changes Staff deems necessary for the project, without additional
Commission approval to maintain the original $23,000,000 budget for this building
contract.
11d. By approval of the Consent Agenda Motion, the Commission approved a
one-year Lease Agreement with Diversified CPC International, Inc. for use of
approximately 1,000 linear feet of CCPN Track No. 622, together with the
unimproved caliche area located between CCPN Track No. 622 and Navigation
Blvd. for the transloading of propane gas from railcar to tanker truck, located in
Corpus Christi, Nueces County, Texas.
11e. By approval of the Consent Agenda Motion, the Commission approved a
Construction Contract to KSI Specialties, LLC, the lowest and best bidder, in the
amount of$101,613.78 for the demolition and site clearing services in connection
with the Harbor Bridge Replacement Project. The Commission also accepted
Additive/Deductive Bid Item 1 at a unit price of$11.50/cubic yard and an allowance
of$575.00 (difference between Base Bid and Evaluated Bid) for use with unit cost
adjustments with accepted Additive/Deductive Bid Item 1. The Commission also
granted the Director of Engineering Services a 6% contingency ($6,096.83) in
accordance with the PCCA's standard contingency guidelines for general
construction projects. The total possible construction contract cost for this project
based on Staff's recommendation is $108,285.61.
11f. By approval of the Consent Agenda Motion, the Commission approved
Service Order No. 6 under Master Services Agreement No. 18-06 with Wood
Environment & Infrastructure Solutions, Inc. in an amount not to exceed $19,024
for services provided associated with the public meeting for the TECQ discharge
permit for desalination at Harbor Island.
11g. Staff recommended approval of Change Order Authorization No. 1 to Task
Order No. 2 to the Professional Consulting Contract with Tetra Tech, Inc., for FEMA
PublicAssistant Grant Management Services increasing the not to exceed amount
from $250,000 to $350,000 for Hurricane Harvey related projects.After discussion,
on motion by Mr. Engel and seconded by Mr. Valls the Commission approved
Staff's recommendation.
11h. By approval of the Consent Agenda Motion, the Commission approved the
submission of the following five project applications to FEMA for grant money in
the Fiscal Year 2019 Port Security Grant Program. The total cost for these projects
if$7,601,763 ($5,701,322 Federal and $1,900,441 PCCA match):
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Project 1 - Fire Boat:
$3,629,802 - Federal
$1,209,934 - PCCA
$4,839,736 - Total
Project 2 - Security Equipment Maintenance & Upkeep:
$562,500 - Federal
$187,500 - PCCA
$750,000 - Total
Project 3 - CBRNE Equipped Patrol Boat w/fire Monitor.
$ 999,020 - Federal
$ 333,007 - PCCA
$1,332,027 - Total
Project 4 - Cybersecurity:
$375,000 - Federal
$125,000 - PCCA
$500,000 - Total
Project 5 - Port Security Marine Patrol Vessel Boat Lifts:
$135,000 - Federal
$ 45,000 - PCCA
$180,000 - Total
12. Chief Executive Officer's Report and Commissioners' Comments:
12a. The Chief Executive Officer submitted his report on upcoming community
events, PCCA events and activities of the following PCCA departments during the
preceding month: Business Development, External Affairs, Operations and
Finance.
12b. Mr. Zahn then asked for comments from the Commissioners.
13. Recess Open Session and Convene Executive Session: At 10:55 a.m., Mr.
Zahn announced the Commission would go into executive session pursuant to,
§551.071, §551.072, §551.074, and §551.087 of the Texas Government Code to
deliberate agenda Items 10f, 11 a, 13a, 13b, 13c, 13d, 13e, 13f, 13g, and 13h which
were described in the agenda as follows:
10f. Consider Port of Corpus Christi policy updates in operating procedures,
standards of conduct, budget transparency, and ethics guidelines. (§551.071)
11 a. Ratify a Lease Agreement for up to 50 years with Lone Star Ports, LLC (a
joint venture involving The Carlyle Group and Berry Lone Star Ports, LLC) for land
on Harbor Island related to marine terminal and associated facilities.(§551.072)
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13a. Deliberate the employment of the Chief Executive Officer. (§551.074)
13b. Receive legal advice from PCCA's counsel in connection with (1) The Port
of Corpus Christi, LP, and 361 Holdings, LLC v. PCCA in the 156th State District
Court, San Patricio County, regarding the Good Hope Disposal Materials
Placement Area and (2) Port of Corpus Christi Authority v The Port of Corpus
Christ, LP, in Nueces County Court at Law#4 (§551.071)
13c. Leasing PCCA real property in San Patricio County to a business prospect
and offering an economic incentive to the lessee to locate its business in San
Patricio County. (§551.072 and §551.087)
13d. Offering an economic incentive to a business prospect to locate its business
in San Patricio County. (§551.087)
13e. Receive legal advice from PCCA's counsel regarding current State
Legislative agenda involving Nueces County, San Patricio County and the City of
Corpus Christi. (§551.071)
13f. Purchasing of certain real property in San Patricio County and receiving
legal advice from PCCA's counsel regarding appropriate due diligence before
making this acquisition. (§551.071 and §551.072)
13g. Receive legal advice from PCCA's counsel regarding hearing on PCCA's
permit application for a desalination facility on Harbor Island. (§551.071)
13h. Receive legal advice from PCCA's counsel on various PCCA policies
requested by members of the local legislative delegation. (§551.071)
14. Reconvene in Open Session: At 1:53 p.m. the Chairman reconvened the
meeting in Open Session. No action was taken in Open Session on the matters
deliberated in Executive Session, except as follows-
11a.
ollows:11a. Lease Agreement with Lone Star Ports, LLC.:
Waiver of Supporting Materials Deadline: On motion duly made and
seconded, the Commission agreed to consider this agenda item.
Action: On motion made by Mr. Squires and seconded by Mr. Bowers the
Commission approved the following resolution with Mr. Hoskins voting against the
motion:
RESOLUTION RATIFYING THE EXECUTION OF A LEASE AGREEMENT BETWEEN
THE PORT OF CORPUS CHRISTI AUTHORITY, AS LANDLORD, AND LONE STAR
PORTS LLC, AS LESSEE, FOR 200 ACRES OF LAND ON HARBOR ISLAND TO BE
USED AS A CRUDE OIL EXPORT TERMINAL
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WHEREAS, at a duly called open meeting on March 28, 2019, the Port
Commission ("Port Commission") of the Port of Corpus Christi Authority of Nueces
County, Texas ("PCCA") considered a lease agreement (the "Lease Agreement")
between PCCA, as lessor, and Lone Star Ports, LLC ("Lone Star Ports"), as lessee,
for 200 acres of PCCA land on Harbor Island (the "Leased Premises") for the
development of a crude oil export terminal thereon; and
WHEREAS, the Port Commission, acting on behalf of PCCA, adopted a
resolution at the March 28 meeting (the "Approval Resolution") approving the
Lease Agreement in substantially the form presented to the meeting and
authorizing PCCA's Chief Executive Officer to execute the Lease Agreement in
substantially the form presented to the meeting, with such changes therein as he
shall approve, his execution thereof to constitute conclusive evidence of such
approval; and
WHEREAS, Lone Star Ports has executed the final form of the Lease
Agreement (the "Final Lease Agreement"), which is in substantially the form
presented to the Port Commission meeting on March 28, 2019; and
WHEREAS, the Chief Executive Officer has announced his intention to
execute the Final Lease Agreement immediately after this meeting under the
authority granted to him by the Approval Resolution; and
WHEREAS, the Port Commission hereby finds and determines that the
Final Lease Agreement is in substantially the form of the Lease Agreement
approved by the Approval Resolution; and
WHEREAS, the Port Commission wishes to adopt this Resolution to ratify
its prior approval of the Lease Agreement and to ratify the execution of the Final
Lease Agreement by the Chief Executive Officer on behalf of PCCA;
NOW, THEREFORE, BE IT RESOLVED BY THE PORT COMMISSION
THAT
Section 1. The findings and determinations contained in the recitals to this
Resolution are hereby found and determined to be true and correct, and the
findings, determinations and definitions contained in the recitals are incorporated
herein for all purposes.
Section 2. The Port Commission hereby ratifies its prior approval of the
Lease Agreement and ratifies the execution of the Final Lease Agreement by the
Chief Executive Officer on behalf of PCCA.
Section 3. The Chief Executive Officer is hereby authorized and directed,
for and on behalf of PCCA, to execute, attest, seal, and deliver any and all
additional certificates, documents, or other papers and to do any and all things he
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deems necessary or prudent to carry out the intent and purposes of this Resolution
and the Final Lease Agreement.
14b. Engagement of Baker Botts, LLP: Staff recommended that the law firm
of Baker Botts, LLP, be engaged to represent PCCA as appellate counsel in the
matters of (1) The Port of Corpus Christi, LP. and 361 Holdings, LLC v. PCCA in
the 156th State District Court, San Patricio County, regarding the Good Hope
Disposal Materials Placement Area and (2) Port of Corpus Christi Authority v The
Port of Corpus Christi, LP, in Nueces County Court at Law#4:
Action: On motion made by Mr. Squires and seconded by Mr. Bowers, the
Commission approved the engagement of the law firm Baker Botts, LLP, in
accordance with Staff's recommendation.
15. Adjourn: On motion duly made and seconded, the meeting adjourned at 1:55
p.m.
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